The San Francisco-based company has signed a contract with the city of San Francisco for $25,000 to buy up to 2,600 homes for $5 million each, said the San Francisco Real Estate Association (SFREA).
The purchase would be made under the city’s Residential Tax Increment Financing program (RIFFIN), which will provide $1.5 billion for the city over the next three years.
“We are excited to bring this affordable housing initiative to the Bay Area,” said SFREA President and CEO Jennifer Stacey.
“We know that affordable housing can have a huge impact on the communities in which we live.
This program is a great way to provide more affordable housing opportunities in our communities.”
SFREB is a partnership between SFRE and SFRE, a nonprofit organization focused on providing affordable housing and supportive services to low-income families in San Francisco, who have been hit hard by the housing crisis.
The SFREB partnership with SFRE aims to expand and support low- and moderate-income housing for those who are currently living in San Franciscans public housing.
The group hopes to build on the $30 million that was donated by the City of San Francisco for the affordable housing program, and the $5,000 that was pledged by San Francisco Mayor Ed Lee.
SFRC said the contract with SFFRE will be for approximately 1,600 units, with the potential for a higher price for units that have been purchased.
Stacey said the goal is to get the deal approved by the San Francis Board of Supervisors on April 7.
It will be the first of many affordable housing purchases under the program, which the city has been running since its inception in 2000.
San Francisco is the nation’s most populous city with a population of 1.2 million people, and it is one of the top five most expensive real estate markets in the country.
Last year, the average price for a house in San Jose was $1,849,917, according to the real estate website Trulia.
While San Francisco has been one of San Joses top real estate destinations in recent years, the city still has a large number of affordable housing vacancies, especially in the area around the University of California.
“The affordable housing programs of SFRE will enable the city to expand the housing stock that is already available to our community,” said Stacey in a statement.
Earlier this month, the City Council approved a $1 billion plan to build more than 1,500 affordable housing units in the city.