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Board approves 10-year master lease for 250 Kearny to house homeless veterans
Summary
The Board of Supervisors voted unanimously to authorize a 10-year master lease for 250 Kearny Street to provide units and supportive services for homeless veterans; supervisors and city staff discussed appliances, maintenance reserves, warranties and property-management oversight.
San Francisco'14The Board of Supervisors on a unanimous roll call approved a resolution authorizing the city to execute a 10-year master lease for the property at 250 Kearny Street to house formerly homeless veterans.
The measure authorizes a master lease with an initial monthly rent of approximately $162,000 and calls for the building to be used to provide housing with on-site supportive services for veterans. The lease was adopted by an 11-0 vote.
The discussion that preceded the vote focused on unit amenities and long-term maintenance protections. Supervisor Kim asked what appliances would be provided in the units; John Updike, director of real estate, turned that portion of the response to Amanda Fried of the Mayor's Office of HOPE, who said each tenant will receive a mini refrigerator with a freezer compartment, a microwave, a dresser, a bed and linens. Fried also said the building will include a large communal kitchen and two laundry spaces.
Supervisors pressed for assurances about repairs and capital needs over the life of the lease. Updike and other staff said the building is newly renovated and that many items carry manufacturer warranties. The lease restructures the city—s traditional approach to maintenance caps: instead of per-event caps that led to disputes, the lease sets an annual cap so the city knows its fiscal commitment year to year and requires the owner to provide timely, commercially reasonable responses and to maintain adequate reserves. Updike said the city will control property-management selection through its service-provider request for proposals; that entity will be responsible for day-to-day repairs and vendor response times.
Supervisor Farrell and others noted federal support for the project: Farrell told the board that VASH vouchers and the Department of Veterans Affairs are funding roughly 70 percent of the project cost and ongoing services. Several supervisors thanked staff, the property owner and community providers for the partnership to convert the SRO into housing for veterans.
The board took a roll call vote that recorded 11 ayes; no dissents were recorded and the resolution passed.
Looking ahead, staff said the lease includes a list of repairs and a process for determining whether repairs exceed the lease cap and require owner contribution. Supervisors asked staff to monitor long-term maintenance and capital reserves so the lease does not create the problems seen in older master-leased SRO properties.
