SAN FRANCISCO -- The San Francisco Labor Council and developer Lennar Corp. Tuesday announced an agreement that could bring an estimated 3,500 affordable and low-income homes to the city's Hunters Point Shipyard and Candlestick Point area.

The announcement was made at a news conference today in San Francisco attended by city officials and representatives from the labor council, as well as members of the Association for Community Organizations for Reform Now and the San Francisco Organizing Project, which were also involved in the agreement.

Through the agreement, Lennar commits to making nearly 32 percent of an estimated 10,000 planned housing units to be affordable. The company also committed $27.3 million over nine years to help residents purchase affordable housing units through a Community First Housing Fund and to provide $8.5 million for workforce training.

San Francisco Supervisor Sophie Maxwell, who represents the Bayview-Hunters Point District, said at the gathering, "This project is not only good for Bayview, but it's good for the entire city."

Tim Paulson, executive director of the labor council, said that the agreement followed months of "very intense" negotiations with Lennar.

Kofi Bonner, president of Lennar Urban's Bay Area Division, said that the agreement is contingent on Proposition G passing and that the development would not be feasible if the competing proposition, Proposition F, is approved.

The labor council, ACORN and the San Francisco Organizing Project at the event announced that they have endorsed Proposition G, which will go before voters on June 3 and which encourages timely development of the Hunters Point Shipyard and Candlestick Point area.

"We looked at Proposition G carefully and did our homework," Paulson said in a statement. "This the best deal for working families, for the Bayview community and for the city of San Francisco."

However proponents of Proposition F argue that Proposition G does not offer real guarantees of jobs, parks or affordable housing to the community and that Lennar cannot be trusted. Proposition F would require 50 percent of all new housing units developed in the area to be affordable, claiming it is necessary to provide housing opportunities to working families, students and others.

Mayor Gavin Newsom referred to Proposition F as a "pipe dream" at Tuesday's event and said that Proposition G offers an opportunity to rebuild and revitalize the area.

Through the agreement, about half of the affordable housing units developed would be available for households making up to 60 percent of the area median income, while the other half would be available for households making between 80 and 160 percent of the median income. The affordable housing units would average two and a half bedrooms.

Under the agreement, Lennar also commits to construction and rebuilding of the Alice Griffith Housing Project during the first phase of the development.