(San Francisco) – A few years ago, residents of the largest AIDS housing development in this city were faced with rising rents and an aging building.

Today, they can rest a little easier. The affordability of their apartments has been preserved, and the building has gone through a $7 million renovation.

The Derek Silva Community, which provides 68 units of affordable housing for people living with HIV or AIDS, is an important development in the community because it allows people to live independently for as long as possible.

Mercy Housing acquired the project in December 2001. The nonprofit housing developer bought the property for $7 million from an initially reluctant seller.

Rising rents were pushing the units out of reach for many of the residents. Acquiring the property ensured that the apartments would remain affordable and that the services provided by Catholic Charities CYO (Catholic Youth Organization) would continue, said Jane Graf, regional president for Mercy Housing. Although medical care is not offered at the site, residents have access to other key services, including case management.

The early-1900s apartment building also suffered from outdated building systems. The recently completed renovation included replacing plumbing and electrical systems, upgrading electrical and fire/life-safety systems, strengthening the structure, and improving access for disabled residents.

In addition, a new residential lobby was created, and the basement was remodeled to include a multipurpose room for resident services, a conference room, a computer room, a kitchen, an art room, a darkroom, bike storage, exercise facilities and administrative offices. The renovations were designed by K2A Architecture & Interiors and completed by Swinerton Builders.

“It’s a real jewel in the neighborhood,” Graf said.

The project also includes commercial space that is home to a recently expanded French restaurant and an antique store.

The temporary relocation of residents was one of the major challenges. Some moved to other sides during the renovation, but others chose to stay in the building. They relocated to other floors as the work was performed, Transitions, Inc., a relocation specialist, assisted in the effort.

It is often easier to relocate everyone from a building during an entire renovation, Graf said.

Derek Silva Community is Mercy Housing’s 19th special-needs development in San Francisco.

Financing included 4% low-income housing tax credits and tax-exempt bonds.

The acquisition and renovation were funded by the San Francisco Redevelopment Agency, Citibank, the Federal Home Loan Bank of San Francisco’s Affordable Housing Program, Bank of America, Alliant Capital, the state Department of Housing and Community Development and the San Francisco Housing Authority. The housing authority provided project-based Sec.8 vouchers for 61 of the 68 units.