Wells Fargo has provided a $167.4 million financing package to support the second phase of the Midway Village redevelopment in Daly City, California. The funding was secured by MidPen Housing, a leading Bay Area affordable housing developer, and will go toward building 113 new units as part of a broader five-phase revitalization plan for the community.
The financing structure includes $62.7 million in Low-Income Housing Tax Credit (LIHTC) equity, $76.7 million in senior construction debt, and a $23.5 million takeout loan backed by Freddie Mac. This multi-layered package reflects the growing role of institutional capital in driving large-scale affordable housing solutions across high-demand urban areas.
Located just 10 miles south of downtown San Francisco, Midway Village is being redeveloped to ultimately deliver 555 new homes across 12 buildings. The first phase, completed in May 2024, added 147 units. The newly financed second phase will feature 29 permanent supportive housing units for individuals experiencing homelessness and chronic health conditions, as well as 76 units allocated through the Section 8 program.
The project represents a strategic response to California’s deepening housing affordability crisis. By combining supportive services with affordable housing, Midway Village is designed to create a more inclusive and resilient community. Wells Fargo’s continued participation in both phases of the project highlights the essential role of private lenders in advancing housing equity through long-term, mission-aligned partnerships.
As the need for affordable housing continues to grow across the state, projects like Midway Village signal a broader shift toward mixed-income, service-integrated developments that address both immediate housing needs and long-term community health. Wells Fargo’s investment underscores the importance of scalable financing models in closing the affordability gap and supporting sustainable urban development.
