Shorenstein Residential’s bid to build at 1066 Market faces a legal challenge from Tenderloin Neighborhood Development Corp (TNDC). The advocacy group argues Shorenstein’s project doesn’t sufficiently protect housing affordability in the blighted neighborhood and has filed an appeal.

A key point of contention is who would be eligible for affordable housing at the new building, according to the San Francisco Business Times. While city law requires Shorenstein to price 12% of the total units (36 units) for anyone making $41,450 or less, median income in the Tenderloin is only $23k. TNDC contends the income gap would result in a situation where Shorenstein would take slightly richer non-Tenderloin residents at the expense of poorer locals.

The Board of Supervisors will hear TNDC’s appeal on May 17 and concessions will likely be made by the developer to move the project forward. The board approved Shorenstein's project in March with a 5-2 vote.

Tenderloin politics often revolve around affordable housing. City initiatives encouraged marquee tech tenants to move to the area with preferential tax treatments and other incentives. Residential development has entered the region, leading to deep anxiety over gentrification.

Build principal Michael Yarne previously told Bisnow there was a realization on the part of some housing advocates that anti-development policies had essentially “ghettoized the poor.” [SFBT]