Board extends hotel shelter-in-place program, cites new FEMA reimbursement and urges purchases for permanent housing

The San Francisco Board of Supervisors on March 2 unanimously passed an emergency ordinance to continue the city's shelter-in-place hotel program for people experiencing homelessness, saying new federal rules make continued use of contracted hotel rooms largely cost-free to the general fund.

The ordinance, introduced by Supervisor Matt Haney, directs city departments to continue filling and backfilling hotel rooms under existing contracts and raises the minimum number of active rooms to 2,200. "What this means for us is during the current fiscal year, if we continue to utilize the rooms under contract, the shelter in place program would have no cost to the city's general fund," Haney said during the board discussion.

Why it matters: The board framed the ordinance as an opportunity to use newly available federal reimbursement to shelter more people during the pandemic. Supervisor Haney told colleagues that FEMA had changed its reimbursement rules to "reimbursing 100% of eligible costs retroactive to January 2020 until September thirtieth of this year," which the city can leverage to expand placements.

Most important facts: The ordinance will make approximately 400 additional hotel rooms available by using under-filled hotel contracts, set a minimum standard of 2,200 actively filled rooms, and require that rooms vacated by guests exiting to housing be made available to new people rather than left vacant at a 60% fill rate. Haney told the board the ordinance will be in effect for 60 days and that staff will return with follow-up legislation to plan beyond FEMA funding.

Support and concerns: Supervisors described the program as a major element of San Francisco's COVID response. Supervisor Safa e (Safaie) said the hotels provided a "people-first" approach and praised improved federal reimbursement. Haney and others also emphasized the need for stronger referral systems and coordination with supportive housing placement so newly vacated hotel rooms do not remain empty.

Action on hotel acquisitions: Separately the board unanimously adopted a resolution urging the Department of Homelessness and Supportive Housing (HSH) and partner agencies to identify hotels the city might acquire or lease long-term'including the 25 hotels the city currently leases for shelter-in-place'and to analyze funding from federal, state and local sources. Supervisor Safaie, who sponsored the resolution, said more than 90 property owners have expressed interest in selling or otherwise making sites available for acquisition. "We have a once in a generation opportunity...to purchase these buildings," Safaie said, adding that purchases could produce supportive housing faster and cheaper than building new units.

Formal actions and votes: The emergency ordinance (Item 12) passed final reading unanimously (11 ayes). The hotel-purchase resolution (Item 21) also passed unanimously (11 ayes). The board recognized the measures are temporary responses tied to FEMA reimbursement and signaled plans for longer-term policy work and potential purchases ahead of the anticipated end of FEMA funds in September.

What's next: Haney said staff will return with additional legislation in the coming weeks to address program planning for the months after FEMA funding ends, and the HSH-led review of potential hotel purchases is expected to produce prioritized recommendations to the board.

Attribution: Direct quotes and attributions in this article come from the following speakers as recorded in the board transcript: Supervisor Matt Haney (co-sponsor/introduction of the ordinance), Supervisor Safaie (co-sponsor of the purchase-resolution), and other Board members recorded during the roll call and debate.

Ending: The board framed the measures as short-term emergency steps that take advantage of new FEMA reimbursements while setting a path for longer-term purchases and policy changes intended to transition people into permanent housing.