On Thursday city housing officials celebrated the opening of phase-one of the rebuilt Hunters View development near Candlestick Park.

San Francisco is renovating some of its toughest housing projects, even as the city's housing agency faces federal scrutiny.

Hunter's View opens as federal officials investigate financial problems at the Housing Authority.  The Authority's director, Henry Alvarez, is being sued by employees for alleged discrimination and retaliation.

Mayor Ed Lee says the agency has some serious reforming to do.

"I will continue working with it, but I'm going to challenge everybody to do better, or we'll make the changes necessary to make that going [sic]. Putting more emphasis on where we're going with this and how the management currently at the Housing Authority can do better, that's where I'm going with it," Lee said.

Phase-one of Hunters View currently houses 25 families, mostly from the old project, in a gleaming modern complex with views of the Bay.

The complex is located on Middle Point Road, and is one of  five public housing sites in the city slated for redevelopment as part of the  HOPE SF initiative, Lee said.