San Mateo County approves $14 million loan for its largest affordable housing project
The San Mateo County Board of Supervisors approved a $14 million loan to fund what would be the county’s largest affordable housing project.
The Midway Village redevelopment project is set to build 555 units, contributing to the county’s target of constructing 2,833 total homes by 2031, with 60% of those units allocated for very-low to moderate-income earners. The project is located near the Cow Palace in Daly City.
“This is probably, in terms of housing in San Mateo County, one of the most transformative projects ever,” said Board Vice President David Canepa, who represents District 5 where the project is located.
“This area in particular needs a lot of help,” Canepa said, noting the area has a lower median income than most other areas of the Peninsula. “We’ve talked about the need for affordable housing. This is really going to do that.”
Families applying for a rental unit have to fall within 15-60% of the Area Median Income, which this year is $184,000 for a family of four.
The county submitted its revised state-mandated housing plan, known as the “housing element,” to regulators last April, and is waiting for certification that its plan is compliant with state housing laws.
The state Department of Housing and Community Development returned the housing plan and directed San Mateo County to improve its plans to address housing access among disadvantaged groups, as well as to tackle water and sewage supply issues, among other concerns.
The development is being led by nonprofit affordable housing developer MidPenHousing. Phase 1 was completed in May 2024 with 147 affordable units, while the next phase will open sometime early in 2025.
“We applaud the County of San Mateo for its critical commitment to the final piece of financing for Midway Village Phase 2, which will bring 111 affordable homes for families and a new child care center to Daly City,” said Matthew Franklin, president and CEO of MidPen Housing.
The $14 million loan will go toward the development of Phase 2.
Of the 111 units in that phase, 29 will be set aside for participants in San Mateo County’s Behavioral Health and Recovery Services program, which provides psychological and social services like case management and counseling.
The funding comes at a critical time. In June, a massive fire put a halt to the development of 179 units of an affordable housing project in North Fair Oaks, in southern San Mateo County.
The on-site facilities will feature child care, a community garden, a gym, meeting rooms and outdoor parks.
There will also home ownership opportunities in Phases 4 and 5.