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Board extends shelter and supportive housing grants amid concerns about Kova Hotel performance
Summary
Supervisors approved amendments to extend multiple homeless services grants, including a 10‑month extension for services at the Kova Hotel, while budget analysts and staff noted shortcomings in program performance and a plan for mid‑year review.
The San Francisco Board of Supervisors approved three items (42–44) that extend and increase grant agreements for homeless shelter and supportive housing services, while several speakers raised concerns about contractor performance at one shelter site.
Item 42 approves a third amendment to an agreement for services at a non‑congregate COVID shelter (the Kova Hotel), extending the term through Aug. 31, 2024 and increasing the total grant to roughly $15,000,000. Item 43 approves a third amendment for property management and supportive services at the Henry Hotel, extending the term through June 30, 2025 and increasing the agreement by $4.8 million to approximately $14.6 million. Item 44 is the first amendment for property management/supportive services at five permanent supportive housing buildings, extending the term through June 30, 2025 and increasing funding by about $20.8 million for a new total of roughly $47 million.
A representative identified in the transcript as Mr. Menard answered supervisors' questions about Item 42 and said the contractor operating the Kova Hotel (Episcopal Community Services, ECS) had fallen short on several performance measures: staff trainings were not conducted, referrals to services and wellness checks were not consistently completed, and documentation necessary for residents to obtain housing readiness had not been reliably prepared. Those shortcomings led to a site manager replacement, and HSH (the city's homelessness department) planned a mid‑year review in January; the work was previously state‑funded and will move to local general‑fund support, according to the staff remarks. Mr. Menard said, "Typically, when there's such a low performance, we would only recommend a 1 year extension, but this is not a multi‑year agreement. This is only being extended through August 2024, which is when the city's booking agreement for that site expires."
Supervisor Ronan said the committee had discussed the Kova Hotel thoroughly and reported that a new site manager had been hired and that the provider would provide regular updates and an extensive briefing before the budget process. Several supervisors and staff emphasized the need to revisit funding if performance did not improve; one official said they would recommend terminating funding in the budget process if there were no improvement and no alternative provider identified.
All three items were approved "same house, same call" during the meeting.
Ending: The grants extend existing agreements to maintain shelter and supportive housing capacity while the city monitors contractor performance at the Kova Hotel and plans further review during the budget process.
