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

Like Mike Bartell, who was sleeping on the streets of San Francisco until a program for veterans found him a home on Treasure Island.

"When I first got here, I thought they put me out to pasture. Because there was nothing here," the retired Marine recalled in an oral history recorded by One Treasure Island, a nonprofit that has been supporting low-income island residents with services such as a food bank and literacy classes for 25 years.

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

"It's gonna be one heck of a community when they get all this development done," Bartell said in his oral history.

The Treasure Island & Yerba Buena Island development plan calls for up to 8,000 units of housing by 2042, as well as 300 acres of open and park space. It's a plan 30 years in the making, gaining new momentum thanks to the cooperation of a network of partners, including banks, developers, nonprofits, and more. By working together toward a shared vision for Treasure Island and collaborating on creative solutions, these partnerships are paving the way for the up-and-coming community's future.

A Slow Road Toward a Big Dream

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

"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

Collaboration between many different funders and organizations has reignited the neighborhood's development momentum. 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 the web, including master developer Treasure Island Community Development.

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 often work with an array of public and private entities to make the math work. On Treasure Island, that meant coordinating with multiple groups that were all aligned on the community's future.

Take, for example, Maceo May Apartments, a 105-unit affordable housing building created for veterans and their families. The building's construction 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 Maceo May nonprofit developer Chinatown Community Development Center by FHLBank San Francisco member community development financial institution (CDFI) Community Vision Capital & Consulting.

"Getting Maceo May to the finish line was not an easy task, but we were able to complete the project with the help of a pair of exceptionally committed partners," said Malcolm Yeung, executive director of the Chinatown Community Development Center.

Geddy Dukes, a credit analyst with Community Vision Capital & Consulting, a local CDFI, credited the organization's long partnership with FHLBank San Francisco with helping the Maceo May project to persevere. "We value the strength of these relationships and remain committed to our collaborative efforts to foster inclusive and sustainable housing solutions," Dukes said.

Financial Partners Fill the Gap

Grant funding from FHLBank San Francisco's AHP exemplifies how partnerships can 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 funding puzzle necessary to bring affordable housing projects like those on Treasure Island to life. FHLBank San Francisco AHP grants are awarded annually through a competitive application process, with applications submitted by members of the cooperative in partnership with housing developers and community organizations. Since 1990, FHLBank San Francisco has awarded more than $1.35 billion in AHP grants to help construct, preserve, or purchase more than 150,000 affordable housing units.

Similarly, 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 from FHLBank San Francisco.

Josh Hamilton, senior vice president of lending at Century Housing Corporation, called the Star View Court a "critically needed project" for the community—one that couldn't have happened without their partnerships with FHLBank San Francisco and Mercy Housing. "This collaboration emphasizes the vital role AHP funds play in closing the financing gap for affordable housing."

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 vets, including Mike Bartell.

"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."

Treasure Island's growing vibrance is clear on the ground, even beyond its four new residential buildings. Walking the paths around the angular island feels almost like walking on the surface of the Bay. It's a beautiful place that looks and feels like no other part of San Francisco, soon to be inhabited by a cross-section of San Franciscans.

"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.

Expanding access to affordable housing is central to FHLBank San Francisco's mission. Learn more about our community investment programs.