State to put affordable housing on SF DMV site

SAN FRANCISCO - California Gov. Gavin Newsom has announced the Fell Street DMV office in San Francisco will be transformed into one of the city's biggest affordable housing complexes. 

Right now, the 2.5-acre site includes an office built in the 1960s and a parking lot taking up most of the block. 

Now, the governor's office has confirmed that a developer has signed on to transform the site, bringing 372 new affordable housing units to the neighborhood. 

"We will continue to use all our tools to create more affordable housing throughout California — including by converting underutilized state property into homes," Newsom said in a statement.

San Francisco Supervisor Dean Preston worked with the governor's office and state lawmakers to get the deal done. 

"When you look at it, it begs for a different use," said Preston. "Not only a DMV site but build housing over it. We were determined that the housing be affordable."

The new DMV and housing site will likely include a separate building for the DMV offices and underground parking.

The affordable housing will allow those who make between 30 and 80 percent of the average area income to move in. 

"This is our teachers, our janitors you know," said Preston. "Folks who might be earning 30, 40, 50, 60, or 80,000 bucks a year. More if they're families with multiple earners."

The new housing will bring hundreds of new faces to the Panhandle. Falletti Foods sits directly across the street from the DMV parking lot, and the grocery store says they expect to see a lot more business. 

"If that was across the street, you know, you could come here, come shopping," said Justin Brim from Falletti Foods. "No bus ride needed. You know, you could walk to your place."

Brim also lives in the neighborhood, and welcomes more affordable housing. 

"I know housing is really hard to get nowadays, said Brim. "I grew up right around the corner, so I've experienced being priced out myself in the city. You know affordable housing is vital."

Some DMV visitors agree that more housing is a good thing for the neighborhood. 

"I think housing is a wonderful thing," said Ingrid Little. "Everybody needs a decent place to stay."

Other DMV visitors worried the new project would make a trip to the DMV take even longer. 

"How long would it take to get a DMV back in action," asked Frank McGinness. "That's my concern."

Assemblyman Phil Ting, who worked on the project with the governor and local officials, said they included the DMV in the planning from the outset to work out what the agency would need. 

"We want to make sure that the DMV keeps operating under construction, that's one of the major items," said Ting. "If there is disruption, I think they'll have plans to send people to Daly City."

The project is scheduled to take place in three phases and take several years. 

Those who spearheaded this program say other state and government-owned properties may also be transformed to include housing in the years to come.