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Board OKs Homekey purchase of Granada Hotel for permanent supportive housing
Summary
The Board of Supervisors unanimously authorized $49 million in Homekey funds to Episcopal Community Services to acquire the Granada Hotel at 1000 Sutter Street and committed up to $33 million in local match and operational subsidies over five years; the board also affirmed the CEQA determination.
The San Francisco Board of Supervisors on Dec. 8 unanimously approved a resolution authorizing the Department of Homelessness and Supportive Housing to accept and expend up to $49,000,000 in Homekey grant funds for Episcopal Community Services to acquire the Granada Hotel at 1000 Sutter Street for conversion to permanent supportive housing.
The board also approved HSH’s commitment of up to $33,000,000 for project expenses and additional operational subsidies over five years to satisfy the local match requirement, and affirmed the project’s environmental determination under the California Environmental Quality Act.
Why it matters: Homekey is a state program that funds acquisition and conversion of hotels and other properties into permanent supportive housing. The board’s action moves a sizeable state-local investment toward providing long-term housing with services for people experiencing homelessness in San Francisco.
What the board decided: The resolution authorizes the Department of Homelessness and Supportive Housing (HSH) to execute a revised standard agreement for the Homekey funds and to commit local subsidy dollars and operational support for five years. The item’s title in the agenda specifies the $49,000,000 Homekey amount, the $33,000,000 local commitment and the project address; the board also affirmed CEQA as part of the vote.
Who spoke: Supervisor Aaron Peskin spoke in support and said he appreciated departmental outreach and work with Episcopal Community Services and HSH; he also thanked the Department of Real Estate staff (Josh Keane was named in remarks) for their role in advancing the acquisition.
Vote and procedure: The clerk called the roll; all 11 supervisors present voted aye and the resolution was adopted.
Background: The Homekey program is administered by the California Department of Housing and Community Development and was created to accelerate conversion of motel and hotel units into long-term supportive housing during the COVID-19 pandemic. The board’s action is an administrative authorization: HSH and the contract partner (Episcopal Community Services) will complete acquisition and conversion work and require subsequent implementation steps for tenant selection and operations.
Next steps: HSH will proceed to execute the Homekey agreement and apply the local funding commitment to project costs and five years of operating subsidies as described in the legislation.
