Mercy Housing California and Openhouse on December 11, 2025, announced that the 1939 Market Senior Housing community has been awarded funding through the Affordable Housing and Sustainable Communities (AHSC) Program, administered by the California Strategic Growth Council (SGC) and the Department of Housing and Community Development (HCD).
The project marks a new chapter for Openhouse and Mercy Housing California, which previously partnered on similar projects at 55-95 Laguna Street, around the corner from the new building. When 1939 Market Street opens, it will add 187 affordable homes to the existing stock of 121 units on Laguna Street, creating the largest affordable housing campus for LGBTQ+ older adults in the nation.
Morey Riordan, Executive Director of Openhouse, expressed his excitement about the project, noting “it’s rare—but so important—to have good news to share in these difficult times. With this new, truly affordable housing project, we are one step closer to a world in which LGBTQ+ older adults can remain part of the communities they helped to shape.”
Tiffany Bohee, President of Mercy Housing California, shared that “by pairing affordable, service-enriched housing with climate-conscious design and transit access, 1939 Market will offer homes for LGBTQ+ seniors while contributing to a healthier, more resilient San Francisco. This AHSC award affirms our shared commitment to sustainability and equity and provides critical resources to make this vision a reality. We are honored to collaborate with Openhouse on this transformative project and deeply grateful to the Strategic Growth Council and the Department of Housing and Community Development for their support in making this community possible.”
The new facility will provide housing for households at 15%–60% of Area Median Income, as well as much needed office and programmatic space. The development marks a significant step forward in the ongoing efforts to provide housing and services for the LGBTQ+ older adults who shaped San Francisco.
The location has been slated for a new housing development since the city purchased the site in 2020. Openhouse and Mercy Housing California won the right to develop the project through a competitive application process hosted by the Mayor’s Office of Housing and Community Development (MOHCD) in 2021. MOHCD has been a vital resource throughout the multi-year process, including providing financing and project support.
“We are excited that this project at 1939 Market has officially received funding and is moving forward,” said San Francisco Mayor Daniel Lurie. “This is an important step for LGBTQ seniors who deserve stability, dignity, and access to housing in the city they call home. State support for this project moves us closer to delivering new homes on a key site and strengthens our commitment to our seniors. We will keep working with our partners to bring this project to life and ensure San Francisco remains a welcoming place for every generation.”
The proposal, which has been scored highly in past AHSC rounds but did not receive funding, earned an impressive score of 87 out of 100, underscoring its strong alignment with the mission of reducing greenhouse gas emissions and serving disadvantaged communities.
1939 Market is being delivered under SB 35, California’s streamlining law that speeds up production of affordable housing. This project shows how SB 35 is helping move well-planned, community-serving homes from concept to construction more quickly and predictably.
The new building will be highly visible, located at the gateway to the Castro LGBTQ+ Cultural District, which has been a haven for LGBTQ+ communities for more than half a century.
When Dr. Marcy Adelman and Jeanette Gurevitch founded Openhouse nearly 30 years ago, they set out to create pathways for LGBTQ+ older adults to remain in the city they had helped shaped. “Openhouse housing has always been more than bricks and mortar, but rather building and strengthening community by valuing and caring for one another, especially those in later life,” noted Dr. Adelman, who is also a San Francisco Bay Times columnist. “With the addition of 1939 Market Street, Openhouse will exponentially expand the number of safe, accessible, affordable, and supportive environments where LGBTQ+ older adults can live and thrive in community. Well done, everyone!”
Openhouse and Mercy Housing California anticipate sharing more information about the construction timeline and process to apply for a spot in the new building in the coming months. For updates on the project, visit www.1939market.org
Quick Facts About 1939 Market Street
•100% affordable units;
•15 stories;
•187 units;
•106 studios;
•79 one bedrooms;
•two units for management staff, including a one bedroom and a two bedroom;
Principals
•Mercy Housing California – Developer;
•Openhouse – Co-Partner, Community Services Provider;
•Paulett Taggart Architects – Architect;
•A. Studio – Associate Architect;
•Swinerton Rubecon Joint Venture – General Contractors.
Published on December 18, 2025
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