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Aging DMV building in San Francisco is being renovated, combined with an affordable housing project

The dated Department of Motor Vehicles building on the edge of San Francisco’s Panhandle will be renovated and transformed into a mixed-use building that will include hundreds of affordable housing units, the governor’s office said Thursday.

Governor Gavin Newsom announced a plan to transform the state-owned facility into a unique project that combines 372 affordable units with a DMV field office. The tallest building would be eight stories high.

The DMV, which has stood in the same spot at Fell and Baker Streets since 1960, is notoriously outdated and does not meet current health and safety regulations. Now it’s about to be demolished to make way for not only a more modern DMV, but also one of the city’s largest affordable housing complexes.

DMV of San Francisco
An aerial view of the Department of Motor Vehicles facility at Fell and Baker Streets east of the San Francisco Panhandle.

State of California/Governor Gavin Newsom


Amber Walker, a resident who regularly waits in line at the station, remembers a time when the DMV line flowed into Fell Street and turned the corner. She often clears her calendar for upcoming appointments.

“It’s like I have to take hours off, you know,” Walker said. “Just to be able to come here.”

Supervisor Dean Preston worked with state officials on the plan. He says the homes will be in the parking lot outside the DMV.

“It’s really exciting to see,” Preston said.

The housing will be specifically aimed at those earning 30 to 80% of the average income in the region. This new project is the latest in the state’s effort to build more housing and curb rental prices. San Francisco must meet the state’s goal of building 82,000 homes by 2031, more than half of which must be affordable.

Across the street at Falletti Foods, store manager Justin Brim says the new housing would be a godsend for small local businesses still reeling from the post-pandemic fire.

“It’s been a long COVID-19 period. It would be really good to bring more people to the area,” Brim said. “And then affordable housing is really vital for San Francisco right now.”

It’s not yet clear what the homes will look like next to the DMV, but Preston says they will most likely be stacked, with the parking spaces moved underground.

The renovated DMV facility is expected to be completed in June 2029 and the homes will be available in 2030.

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