The development’s neighborhood commitments have also changed. Agreements between developer DM Development and community groups expired in 2023, and the company now proposes a smaller contribution to one local organization than it originally promised. Other benefits remain under discussion with neighborhood partners.

The project was initially approved in 2021 as a 168-unit building with 23 affordable homes. Its current plan has 16 fewer units and eight fewer affordable homes. The 15 affordable units are designated for households earning from 30% to 120% of area median income. Under 2026 income limits, that range runs from $34,050 for an individual or $48,650 for a family of four to $136,150 for an individual or $194,500 for a family of four. DM Development has not said how the units will be divided among income levels.

The reduced affordable-housing count comes as San Francisco’s inclusionary housing rate has fallen. The city’s inclusionary rules require certain market-rate developments to include or support below-market-rate homes.

Before the project received permits, its developers made a series of commitments to local groups. They included $2 million toward the purchase of a Folsom Street site for a proposed affordable housing project; a 1,500-square-foot ground-floor gallery for the Community Arts Stabilization Trust; improvements to the Sweet Peas preschool playground and a dividing wall; and money for Friends of Franklin Square park projects and cleanups.

DM Development now says it plans to give $500,000 in seed funding to Cultura y Arte Nativa de las Americas, the arts nonprofit led by longtime Mission organizer Roberto Hernandez. The company also plans to hold a fundraiser and match up to $500,000 in additional donations. That replaces the original $2 million commitment connected to the Folsom Street property.

Hernandez said the project drew less opposition than some other market-rate Mission developments because developer Mark MacDonald worked with community members. The neighborhood had mounted more visible campaigns against other projects in previous years.

MacDonald has attributed the long delay to rising interest rates that began in 2022. DM Development and Denver-based real estate firm Ancestris recently secured a $61.7 million loan from PNC Bank to move the project forward. MacDonald said changes to the project and its community partnerships were needed to make financing and construction feasible in current market conditions.

Some commitments may still take shape. Sweet Peas director Samantha Dionne said a DM Development employee contacted her about six months ago to say the company intended to honor its playground commitment. After Dionne requested more information last week, the company said it would arrange a call once plans and contractor timelines were finalized.

The Community Arts Stabilization Trust, which was promised the gallery space, has not spoken with the developers since 2022, according to its communications director, Catherine Nguyen.

Friends of Franklin Square member Jolene Yee said DM Development has sponsored the group’s last 12 park cleanups, which cost about $300 to $400 apiece. The company told Yee last week that renewing its agreement with the group was on its agenda, she said. The original deal also included $25,000 for the park and up to $2,000 annually for cleanup costs over three years.

For the preschool, the original agreement included a new wall and $25,000 for outdoor play-area improvements. The status and scope of those items remain unclear as the company continues discussions with Sweet Peas.

The development is a sign of how neighborhood benefits can shift when projects take years to secure financing: the community agreements made before approval expired while the project remained stalled. DM Development says it wants to restore confidence that other housing proposals can move ahead, but several groups are still waiting to learn what the revised commitments will mean in practice.