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Committee forwards one-year, $19 million amendment to Brilliant Corners' flexible housing subsidy contract amid performance discussion
Summary
Committee members forwarded to the full board a one-year amendment that increases Brilliant Corners' flexible housing subsidy pool contract by about $19 million and extends the term; analysts and supervisors discussed placement timelines and provider performance metrics.
The Budget and Finance Committee on Feb. 26 referred to the full Board of Supervisors, without recommendation, a resolution to approve the third amendment to the Department of Homelessness and Supportive Housing's (HSH) agreement with Brilliant Corners to administer the Flexible Housing Subsidy Pool (FHSP).
Emily Cohen of HSH described the amendment as a one-year extension through June 30, 2026 and an increase of roughly $19 million to bring the contract total to approximately $59 million. HSH said Brilliant Corners administers a pool of rental subsidies and housing location services that serve up to 500 adults in scattered-site permanent supportive housing; as of February 2025, Brilliant Corners had 422 active households and HSH expects all 500 subsidies to be utilized within the fiscal year.
HSH told the committee the program pairs rental subsidies (participants pay 30% of income toward rent) with supportive services provided through partner agencies. HSH said the program is 100% funded by the city's Our City Our Home funds and estimated the cost per tenant is about $35,000 per year (subsidy plus housing search and placement work).
Budget and Legislative Analyst (BLA) staff noted performance concerns: placement timelines exceeded the contract target of 75 days (178 days in FY 22-23, 116 days in FY 23-24). BLA recommended approval of the amendment while flagging underperformance and underspending in prior years, and suggested the board may consider reallocating funds if another provider could deploy funds faster. HSH and Brilliant Corners said placement timelines have improved (HSH reported a 36% reduction in time-to-placement), and HSH proposed adjusting targets to 90 days in the next procurement to reflect adult scattered-site housing realities.
Vice Chair Matt Dorsey moved to forward the amendment to the full board without recommendation to allow committee members to raise concerns at the full board. The motion passed with three ayes (Dorsey, Engadio, Chan).
William Pickle, CEO of Brilliant Corners, spoke in support of the amendment and the provider's experience with the FHSP model and expressed commitment to improving placement speed.
