CAO proposes 2,130‑unit compliance plan, incl. 2,000 TLS slots; warns of three‑year $488 million funding gap

City Administrative Officer Matt Zabo told the Housing and Homelessness Committee on Sept. 17 that the city must submit an updated bed plan to the court overseeing the Alliance settlement by Oct. 3 and recommended a mix of non‑congregate units, permanent supportive housing and 2,000 time‑limited subsidies to close the remaining compliance gap.

“The gap, the requirement, of course, is 12,915 beds,” Zabo said. He reported the city currently has 7,440 open beds or units and another 3,776 beds in process, for a total of 11,216 open or in‑process units. Zabo said 394 of the in‑process permanent supportive housing units are at risk of delay beyond the June 2027 compliance date; excluding those units, his office calculated a conservative gap of about 2,093 units to meet the 12,915 target.

Zabo recommended the city close the gap with a package that already has some funding identified — 130 non‑congregate beds, 17 PSH units at Jordan Downs, 53 interim congregate beds at Union Rescue Mission and 60 non‑congregate interim beds in Council District 5 — plus a proposed 2,000 time‑limited subsidies (TLS) to reach a total of 2,130 units in the plan.

Why this…