June 30, 2025
  • North Fair Oaks – A year ago Elaine Palacios, a project manager with the nonprofit housing developer Mercy Housing, received the worst news of her career.

    There’s a fire on site,” she was told. “It’s bad.”

    A whirlwind of fire was consuming all six floors of Building B, the larger of two apartment buildings under construction as part of Middlefield Junction, a 179-unit affordable housing development in North Fair Oaks and one of the largest projects of its type in San Mateo County.

    The response was massive and regional: eight alarms involving 36 fire engines, six ladder trucks and dozens of firefighters and support crews.

    When the smoke cleared, what was to become 104 apartments at Middlefield Junction's Building B had burned down to the concrete foundation.

    One year later, it's hard to recognize the site was filled with smoldering debris. Crews have rebuilt all six stories of Building B, and Mercy Housing is now reviewing applications. Move-ins could begin in Building B as early as February 2026, a key step in addressing the region’s acute shortage of affordable housing.

    Elaine Palacios

    Despite the scale of destruction, the fire is expected to delay the opening of Building B by only about six months, far less time than many might have anticipated.

    “Someone told me the other day that the fire was a year ago. I’ve been in the trenches of it all and I didn’t realize how fast time has gone by,” Palacios (pictured, in Building B) said during a recent tour. “I’m very proud of our team. They’ve done a great job.”

    The transformation over the past year has been significant. Palacios credits a strong, collaborative effort among Mercy Housing, contractors and other stakeholders.

    Local leaders are watching the progress.

    San Mateo County Supervisor Lisa Gauthier, whose District 4 includes North Fair Oaks, said, “To see Middlefield Junction rising again after such a devastating setback is truly inspiring. This project began before my time and is the result of the vision and dedication of those who came before me, especially former Supervisor Warren Slocum."

    Gauthier added, “In the middle of a housing crisis, this development is more than just new buildings; it’s hope, I look forward to the day families move in, because when people are housed, our entire community thrives.”

    The fire broke out shortly after 10 a.m. on Monday, June 3, 2024. Despite the size of the blaze and location – next to the County’s Fair Oaks Health Center and in a densely populated neighborhood – no serious injuries were reported.

    Investigators with the Menlo Park Fire Protection District determined the fire started in a unit on the fifth floor but were unable to determine the cause. They noted the fire ignited at a time when large buildings are at a particularly vulnerable stage of construction – before sprinklers were installed while “combustible wood framing was exposed” throughout.

    Exterior of Building B

    Crews rebuild the courtyard at Building B, set to open as early as February 2026, a year after fire gutted the structure at Middlefield Junction in North Fair Oaks.


    On the tour, Palacios pointed to work across a driveway from Building B, where crews were busy installing appliances and putting the finishing touches on Building A, a five-story structure with 75 apartments along with a new child care center for three dozen infants and toddlers.

    Building A sustained only minor heat damage despite sitting less than half a basketball court away from the inferno that destroyed Building B. Mercy Housing expects the first residents will begin moving in to Building A this August.

    For Palacios, the effort to bring affordable housing to North Fair Oaks is deeply personal. “I was born and raised in Redwood City,” Palacios said. “It’s exciting to deliver these units to the community. There’s a dire need. It hits a soft spot for me for sure.”

    “We’re almost done but we still have a good final push,” she said, pausing a bit. “Everything seems uneventful, which is good.”

    A year after such a devastating fire, no news is good news.


    About Middlefield Junction: 
    Appliances are installed in Building A, which had little damage from the fire.

    ► New apartments from one to three bedrooms.
    ► The development serves income-qualified residents, including individuals and families who have experienced homelessness.
    ► Communities spaces: courtyards, resident lounge, event space.
    ► On-site property management, maintenance.
    ► Close to shopping, public transit.
    ► Furnished kitchens with refrigerators, dishwashers (as shown here in Building A).
    ► On-site laundry.


    A furnished kitchen nears completion in Building A at Middlefield Junction, an affordable housing project in North Fair Oaks where the first residents are expected to move in within weeks.


    Mercy Housing is no longer accepting new applications after receiving more than 2,000 applications for homes in Building A and Building B.

    County of San Mateo contributions to Middlefield Junction:


    ► Long-term below-market ground lease of County owned land.
    ► 44 Project-Based Vouchers from the Housing Authority of the County of San Mateo Those project-based vouchers are attached to specific units, so when a tenant moves out, a new tenant receives the subsidy.
    ► Housing Authority of the County of San Mateo loan of Moving to Work Reserve funds in the amount of $3,263,534.
    ► County loan of $12,982,284 from American Rescue Plan Act.
    ► County loan of $6,678,823 from Measure K, a local, voter-approved half-cent sales tax.
    ► County loan of $2,818,333 from the Local Housing Trust Fund.

    Building A nears completion

    The 75-unit Building A was largely untouched by the June 2024 blaze. Here, crews are putting the finishing touches on the exterior on a recent tour.