San Francisco Advances Potrero Yard Modernization and BART Transit Housing to Expand Core Muni Capacity and Deliver Mixed-Income Communities

C
Charlotte
Sep 30, 2026 San Francisco

Revitalizing Century-Old Infrastructure for Zero-Emission Fleets

SAN FRANCISCO, California — In an ambitious move to future-proof urban transit and address the Bay Area's persistent housing demand, the San Francisco Municipal Transportation Agency (SFMTA) is aggressively advancing its flagship Potrero Yard Modernization Project. The transformative capital initiative replaces an obsolete, 100-year-old bus depot with a three-level, state-of-the-art bus operations and maintenance complex engineered to support 100% battery-electric and trolleybus fleets. Positioned in the historic Mission and Potrero Hill districts, the multi-story facility integrates resilient clean-energy charging bays, computerized fleet dispatching systems, and subterranean seismic reinforcements.

Importantly, the facility is designed with integrated joint-development air rights, enabling hundreds of permanently affordable and workforce residences directly atop and adjacent to the civic bus facility. By co-locating essential municipal operations with deeply affordable housing, San Francisco is pioneering a blueprint for high-density, multi-use public infrastructure.

Muni Metro Capacity Study Unlocks High-Frequency Subway Corridors

Parallel to maintenance yard upgrades, transit engineers are rolling out recommendations from the comprehensive Muni Metro Capacity Study. Aimed at relieving systemic bottlenecks through the Market Street Subway, the agency is upgrading traction power substations, re-engineering crossover switches, and preparing infrastructure for three-car light rail train configurations on the heavily traveled N-Judah and M-Ocean View corridors.

These engineering enhancements will enable higher peak passenger throughput, shorten platform dwell times, and provide seamless, high-capacity connections between downtown commercial centers, academic medical campuses, and western residential neighborhoods.

BART Expands Transit-Oriented Communities Across the Bay

Regionally, the Bay Area Rapid Transit (BART) Board of Directors has advanced its Transit-Oriented Development (TOD) program, selecting Adeline Alliance Partners to construct a multi-phase master plan at the Ashby Station West Lot. The development will deliver approximately 600 high-density apartments, with 50% permanently reserved for low- and moderate-income households, complemented by neighborhood-serving community retail, plaza spaces, and bicycle hubs.

Meanwhile, heavy civil construction is progressing rapidly at the West Oakland BART station (1470 Fifth Street), delivering an initial 240 affordable units, while planning continues for station redevelopments at North Berkeley and Fremont. These transit-adjacent housing hubs ensure riders can access rapid transit within steps of their front doors, driving sustainable regional ridership growth.

Family Zoning Reforms Pave Way for 82,000 New Homes

These transit investments align closely with San Francisco's landmark Family Zoning Plan, which recently reformed municipal land-use codes to unlock zoning capacity for over 36,000 new residences along primary transit corridors and commercial districts. Designed to fulfill California’s statutory Housing Element mandate of delivering 82,000 new homes by 2031, the reforms streamline approvals for mid-rise family apartments near Muni and BART stations.

City planners and transit advocates emphasized that uniting high-capacity rail upgrades, clean bus maintenance facilities, and aggressive zoning reform creates a more walkable, climate-resilient, and socially equitable San Francisco for generations to come.