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Board advances Homekey hotel purchase, all‑electric building code and contracting reforms; multiple MOUs move forward

3006325 · April 16, 2025
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Summary

On Nov. 17 the Board approved a package of consent and calendar items including a Homekey grant agreement to acquire a 130-room tourist hotel for supportive housing, an all-electric new-construction building code, and an administrative-code change to tighten contractor selection; multiple union MOUs and other routine matters were also advanced.

On Nov. 17 the San Francisco Board of Supervisors approved a range of items on the consent and regular calendars with limited debate. Highlights from the day’s calendar included a Homekey grant deal to convert a hotel into supportive housing, an ordinance requiring new construction to be all-electric, and new rules for documenting contractor selection in public works — along with a package of employee-union MOUs.

Homekey hotel acquisition and match funding: The board adopted a resolution authorizing the Department of Homelessness and Supportive Housing to accept up to approximately $30 million in Homekey grant funds from the California Department of Housing and Community Development to Episcopal Community Services for the acquisition of a 130‑room tourist hotel at 440 Geary Street for conversion to permanent supportive housing. The resolution also authorized roughly $27.5 million in city funds to meet local match and operational subsidy requirements over five years, and affirmed the CEQA determination. That item passed without objection.

All‑electric building code and implementation hearings: The board advanced an ordinance to amend the building code to require new construction to use only electric power and to amend the environment code to require public hearings on implementation of all‑electric requirements; the board also adopted findings required under California Health and Safety Code and affirmed the associated CEQA determination.

Contracting transparency ordinance (Administrative Code): Supervisors passed an ordinance to amend the Administrative Code requiring that departments notify prequalified contractors and record documented justification for selecting contractors from prequalified lists or as‑needed public works professional services — and to require the Controller to audit such selection documentation. The change was framed as a response to an auditor’s public-integrity review and as a measure to close loopholes that had permitted noncompetitive contracting.

Union MOUs and labor-related items: A package of MOUs with local public‑sector unions — including several firefighter and municipal executive amendments, and memoranda affecting police management, service employees and others — was taken up and advanced on first reading as part of consent bundles. The Board also approved a separate tentative agreement with the San Francisco Police Officers Association on first reading following a separate, lengthy committee hearing and public debate (see separate coverage).

Other business: The Board also considered (and where required adopted) a set of budget and administrative resolutions including certain property‑based business improvement district actions and personnel appointments. The Fisherman’s Wharf Portside business improvement district vote showed a majority protest in the weighted-ballot tabulation and the item was tabled accordingly.

Why it matters: The Homekey acquisition will add a planned conversion into permanent supportive housing and the city funds identified will be used for acquisition and operating match. The all‑electric ordinance signals a continued push by the city to reduce fossil-fuel use in new construction. Contracting reforms respond to auditor recommendations aimed at increasing transparency and reducing the potential for favoritism in public works procurement.

What’s next: Several items (ordinances) will return for second readings as required by code; the administration and departments will implement new contracting documentation and audit processes. The Homekey acquisition moves forward through the Department of Homelessness and Supportive Housing and the city’s grant‑administration processes.