How Community Partnerships Are Driving Treasure Island's Future

San Francisco's Treasure Island has served many purposes since the 1930s — World's Fair grounds, a military base, and a shelter for San Franciscans in need of a fresh start.

Today, the human-made island two miles from San Francisco's mainland is transforming again: into an inclusive, sustainable neighborhood that could someday house up to 20,000 people.

The Treasure Island & Yerba Buena Island development plan, 30 years in the making, calls for up to 8,000 units of housing by 2042 and is gaining new momentum thanks to the cooperation of a network of partners, including banks, developers, nonprofits, and more. These partnerships are paving the way for the future of Treasure Island.

A Slow Road Toward a Big Dream

The City of San Francisco intended to transform Treasure Island into a thriving neighborhood since the Navy decommissioned it in 1997. But for years, realizing that vision was delayed.

"There was a real optimism in how quickly development could begin. [They] were projecting that we could be in construction by 2002, 2003," said Robert Beck, director of the Treasure Island Development Authority, a city agency.

"Each step took longer than anticipated," Beck explained. Years of planning and paperwork, funding changes and legal challenges all extended the timeline.

"I'm grateful that it's moving forward," said San Francisco Supervisor Matt Dorsey, whose district includes the island. He noted that the city has a state-mandated goal of adding 80,000 housing units by 2031.

"The Treasure Island Project is going to account for 10% of this — so it's really important to the city."

Community Partners Take the Helm

Dorsey points to a web of supportive entities, like One Treasure Island, that have made the neighborhood a refuge for San Franciscans in need of help.

As the development plan progressed, more entities joined this web, including master developer Treasure Island Community Development, reigniting the development momentum.

Financial partnerships are also indispensable. Affordable housing projects generally involve a gap between what residents can pay in rent and the cost of constructing and operating new buildings. As a result, developers work with an array of public and private entities to make the math work.

Maceo May Apartments is a 105-unit affordable development created for veterans and their families that was funded in part by a $1.04 million grant from the Federal Home Loan Bank of San Francisco's Affordable Housing Program (AHP), secured for nonprofit developer Chinatown Community Development Center by FHLBank San Francisco member Community Vision Capital & Consulting, a community development financial institution (CDFI).

Financial Partners Fill the Gap

FHLBank San Francisco's AHP exemplifies how partnerships make affordable housing projects possible. FHLBanks are privately capitalized, member-owned cooperatives serving banks, credit unions, CDFIs, and insurance companies.

AHP grants provide gap funding that can be a critical piece of the complex financing puzzle that brings affordable housing projects to life. FHLBank San Francisco AHP grants are awarded annually through a competitive application process, with applications submitted by members in partnership with housing developers and community organizations.

For Star View Court, another new Treasure Island development that includes affordable housing, FHLBank San Francisco CDFI member Century Housing partnered with nonprofit developer Mercy Housing California to win a $1.7 million AHP grant. "This collaboration emphasized the vital role AHP funds play in closing the financing gap for affordable housing," said Josh Hamilton, Century's Senior Vice President of Lending.

"Treasure Island's redevelopment is a testament to the tremendous power of collaboration and partnerships, which are crucial to addressing San Francisco's housing crisis," said Joe Amato, interim president and CEO at FHLBank San Francisco. "We are proud of the role our Bank's affordable housing and community investment programs play in bringing our member financial institutions together with community organizations to meet local affordable housing needs and build thriving neighborhoods."

Moving Ahead Toward an Equitable Future

Four new residential buildings are open on Treasure Island today. Star View Court was completed in June 2024 and is now 90% occupied. Maceo May, completed in 2023, is 100% occupied by previously homeless and low-income veterans.

"There's something really special about the spirit of Treasure Island and the people who have invested a lot of their lives there," Dorsey said. Looking ahead, he wants to ensure that those current residents are "part of the success story."

The fact that among the first buildings to rise were two affordable housing buildings serving veterans, the formerly homeless, and other families is a strong start in that direction.