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Committee forwards contracts extending operations at several supportive‑housing and shelter sites; authorizes assignment of one lease to DISH SF
Summary
The Budget and Finance Committee on May 21 forwarded to the full Board of Supervisors three HSH contract actions to extend operations at five PSH hotels, continue operations at the 334‑bed NextDoor shelter, and assign the Margo lease from Tide Center to DISH SF.
The Budget and Finance Committee on May 21 forwarded three HSH items to the full Board of Supervisors with a positive recommendation (3‑0): a second amendment to Episcopal Community Services’ master lease and operations agreement for five permanent supportive housing hotels; a third amendment to 5 Keys Schools & Programs to continue operation of the NextDoor shelter; and a resolution approving the assignment of the lease and property management for 1321 Mission Street (the Margo) from the Tide Center to DISH SF.
Item details: the ECS amendment extends the contract by 24 months, increases the not‑to‑exceed amount by about $25.1 million to a new total near $72.3 million, and continues funding for on‑site support services, property management and master‑lease stewardship across five properties (the Alder, Crosby, Elm, Hillsdale and Menton hotels). HSH said the five sites provide 464 units of long‑term supportive housing and reported occupancy rates above 90 percent at those properties.
The NextDoor shelter amendment extends the contract term by 36 months, raises the not‑to‑exceed amount by about $26.7 million to roughly $59.2 million, and keeps 334 shelter beds in operation. HSH noted NextDoor’s relatively low per‑bed operating cost (about $77 per bed per night) because the city owns the facility and operators realize some economies of scale.
The lease assignment at 1321 Mission Street transfers the city’s existing lease and property management agreement from the Tide Center (a fiscal sponsor) to DISH SF, which has built internal capacity to operate independently. HSH said the assignment does not change services or staff; it moves the contract and funding relationship from Tide to DISH. The city acquired the Margo through Homekey and the site houses both adults and families.
Providers and operators spoke in support. Lauren Hall, co‑CEO of DISH SF, described tenant outcomes at the Margo, including a tenant who has achieved sobriety for the first time since adolescence after accessing on‑site supports at the property. Steve Good of 5 Keys said 5 Keys had placed about 242 NextDoor clients into permanent housing and credited the site with dozens of overdose reversals.
The committee approved a non‑substantive correction to the ECS resolution’s citation and forwarded all three items to the full board with a positive recommendation.
