Board holds lengthy "Place for All" hearing as HSH proposes $992 million plan to reduce unsheltered homelessness

The San Francisco Board of Supervisors convened a Committee of the Whole on March 21 to hear "A Place for All," a report from the Department of Homelessness and Supportive Housing (HSH) that outlines options to substantially reduce unsheltered homelessness over three years.

HSH presented a modeling-based plan developed with consultants that compares a balanced package of interventions (prevention, shelter and permanent supportive housing) with a shelter-focused alternative. The department said it revised the cost assumptions in the report after initial release, lowering the up-front three-year start-up estimate from roughly $1.45 billion to about $992 million by shifting some assumptions about acquisitions versus leases and other development choices.

What the department proposed: HSH and its modeling partner Focus Strategies said a balanced investment would add approximately 3,810 permanent supportive housing units and 2,250 shelter units (plus prevention and staffing) and that, under their assumptions, these combined actions would eliminate unsheltered homelessness in three years while avoiding the recurring need to keep building more shelter indefinitely.

By contrast, HSH also modeled a shelter-first strategy: that approach could eliminate unsheltered homelessness in three years only by adding roughly 5,500 shelter beds, but it would require the city to keep adding shelter capacity year after year unless parallel investments in prevention and housing were also implemented.

Costs and assumptions: HSH Deputy Director for Administration and Finance Gigi Whitley outlined the budget assumptions. In the revised (balanced) scenario the department estimated roughly $993 million in initial start-up costs for the first three years and about $378 million in annual operating costs thereafter. The department said its assumptions reflect high leasing, staffing and compliance costs in San Francisco, standards for on-site services (meals, behavioral health, hygiene), and higher pay for service workers.

Guests and outside perspectives: The hearing included outside presenters and experts:

- Sam Dodge, Department of Emergency Management, said DEM believes that with ample shelter the city could rapidly clear encampments within 24 hours, but that this would require greater shelter capacity and legal/geographic constraints to be resolved.

- Amy King, founder and CEO of Pallet Shelter, described Pallet's rapid non-congregate shelter communities that can be constructed quickly and at lower per-unit cost than many conventional shelter or acquisition options. Pallet urged the city to avoid expensive design and development fees for interim shelter.

- Gail Gilman of All Home and Jeff Bellisario of the Bay Area Council Economic Institute presented regional analyses. All Home recommended prioritizing interim housing and suggested a smaller interim target (1,500 units) to create flow, while the Bay Area Council argued San Francisco has already invested heavily in permanent supportive housing and urged regional approaches and cost innovation.

Board response and debate: Supervisors offered a range of opinions. Some supervisors urged rapid, large-scale expansion of shelter capacity, saying unsheltered homelessness is an emergency requiring immediate beds and that the city should use leasing, hotel conversions and other rapid approaches. Others emphasized the long-term cost-efficiency of prevention and housing-first approaches and urged caution about upfront acquisition costs in San Francisco.

Supervisor Rafael Mandelman, sponsor of the Place for All ordinance, urged the Board to reaffirm an ambitious goal to end unsheltered homelessness within three years, to demand a realistic, financially-feasible plan from HSH and to consider using existing local measures (including Prop C) if needed to front-load shelter capacity. Supervisor Mandelman also suggested the Department of Emergency Management could play a larger role in standing up shelter if HSH could not rapidly scale.

HSH and operations: HSH Executive Director Shereen McSpadden said the Place for All report is modeling, not the department's only strategic plan; the department plans a strategic plan to be released in April. The department reiterated that it had refined its cost assumptions and emphasized constraints on scaling, including site identification, the capacity of nonprofit providers and department staffing.

Public comment and expert testimony: Presenters and public commenters included provider representatives, business groups, advocates and unhoused residents. Several business and merchant groups urged immediate shelter expansion; homeless-service providers and advocates generally urged a mix of shelter, prevention and housing and emphasized the need for services, dignity and a rapid exit from encampments.

Next steps: Supervisors requested detailed follow-up information on shelter operating-cost assumptions and potential cost savings from alternative shelter models (including non-congregate options such as Pallet). Several supervisors asked HSH to continue refining its plan and to return with a more detailed implementation road map and financing options that could be used in the near term.

Why it matters: The hearing was the statutorily required Committee of the Whole review under the Place for All ordinance and highlighted the central policy choice facing the city: whether to prioritize rapid interim shelter at lower per-unit cost or a balanced expansion that includes prevention and a larger expansion of permanent supportive housing. Both options require sizeable funding and operational capacity changes in the near term.

Ending note: HSH said its strategic plan in April will set more explicit targets and an implementation schedule. Several supervisors signaled support for near-term shelter expansion while also insisting on improved oversight, cost controls and accountability for how the city spends additional homelessness funding.