Funding Approved for Largest Affordable Housing Project in San Mateo County’s History

Redwood City - The largest affordable housing project in San Mateo County's history received key financial support today from the Board of Supervisors.

By a unanimous vote, supervisors approved a $14 million loan that will spur construction at Midway Village, located near the Cow Palace in Daly City's Bayshore neighborhood.

"This is probably, in terms of housing in San Mateo County, one of the most transformative projects ever," said Board Vice President David Canepa, whose District 5 includes Midway Village. "You're looking at going to 555 units. This is amazing."

The County, through the Housing Authority, is working with partners to transform and expand Midway Village into a neighborhood that showcases affordable housing in the modern age. The new housing will also help achieve functional zero homelessness, that is when the social services system is able to prevent homelessness whenever possible and ensure that when homelessness does occur, it is rare, brief and one-time.

"This area in particular needs a lot of help," Canepa said, noting the area has lower median incomes than most other areas of the Peninsula. We've talked about the need for affordable housing. This is really going to do that."

On-site amenities will include child care, a community garden, an exercise room, meeting space and outdoor recreation areas. Local officials say residents will include former foster youth, who will be offered an array of supportive services, as well as individuals and families and people who formerly experiences homelessness.

The original Midway Village, with 150 units, opened in the mid-1970s to provide housing for individuals and families with low incomes on the site of a former gas works and World War II Navy housing. Redevelopment is now occurring in phases.

Led by nonprofit housing developer MidPen Housing, construction of Phase 1 was completed in May 2024, providing 147 units of affordable housing, and a parking garage that will serve residents of both Phase 1 and Phase 2. Former Midway Village residents are given priority for the new housing.

Today's loan approval will kickstart development of Phase 2, which includes a total of 111 units ranging from studios to four bedrooms along with two additional units for on-site managers.

"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 O. Franklin, president and CEO of MidPen Housing. "We welcomed 147 families and individuals into Phase 1 this year and, with the groundbreaking of Phase 2 in early 2025, are excited to continue progress toward a grand total of 555 new affordable homes across four phases."

Qualified applicants must meet certain income and other requirements. Most units, for instance, are held for individuals or families earning from 15 percent to 60 percent of the Area Median Income.

Of the 111 units, 29 are set aside for clients of the County's Behavioral Health and Recovery Services, which offers support services such as case management and counseling.

All 150 existing Midway Village households have the right to live in Phase 1 or Phase 2 apartments, without having to experience temporary relocation.

Phases 3 and 4 will provide additional affordable housing including some homeownership opportunities. Phase 5 will provide a large public park with playing fields and play structures operated by the City of Daly City.

"This field is going to provide access to a community that does not have a field, whether it's soccer, whether its football." Canepa said.