SAN FRANCISCO (CBS SF) – San Francisco Mayor London Breed announced plans to invest $100 million in funds toward purchasing modular homes that would be constructed at a proposed factory within the city and help address its housing crisis.

According to the mayor, the construction of modular homes, also known as pre-fabricated homes, would help produce desperately needed affordable housing in the city, as well as more union jobs.

“We are in a housing crisis and the reality is we need to produce affordable housing much quicker than we currently do, or we will continue to see displacement of our low- and middle-income communities,” Breed said in a statement Monday.

“By building a modular housing factory in our own backyard, we can create housing faster and more cost-effectively, while also creating great union jobs in partnership with our labor leaders,” she said.

According to Breed’s office, the city has already chosen international design firm Nelson Worldwide to conduct a feasibility study for the new factory on lands controlled by the Port of San Francisco.

The first phase of the feasibility study has already begun, with Nelson Worldwide currently conducting stakeholder meetings, data collection and analysis in order to determine the logistics.

“Providing new homes for people experiencing homelessness as fast as we can is essential to creating a compassionate and livable city for all San Franciscans,” Kate Hartley, director of the Mayor’s Office of Housing and Community Development, said in a statement.

The facility would be built through a partnership with the San Francisco Building Trades Council, a group of 28 construction unions.

The second phase of the feasibility study, which would develop a business plan for the proposed factory, is expected to be completed by the end of the year, according to Breed’s office.

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