Budget and Finance Committee forwards mayor's emergency ordinance and a package of housing, transportation and lease measures to full board

SAN FRANCISCO — The Board of Supervisors Budget and Finance Committee on Jan. 29 voted to send to the full Board a package of measures including a mayoral emergency ordinance aimed at speeding the city's response to fentanyl, homelessness and related behavioral-health needs, extensions and funding for homelessness and youth programs, several leases and a refinancing plan for Port of San Francisco debt.

The committee, chaired by Supervisor Connie Chan, acted on about a dozen agenda items. Chair Chan and Vice Chair Supervisor Matt Dorsey said the emergency measure responds to an "unprecedented" public-health and public-safety crisis and seeks time-limited authority so the administration can move more quickly on treatment beds, shelter and hiring while maintaining reporting and sunset provisions.

The ordinance and related amendments

The committee approved sending to the full Board an ordinance the mayor's office wrote to speed contracting and certain leases for a one-year period for projects tied to homelessness, mental health, substance use, integrated health and public-safety hiring. Ally Bondi, policy adviser to Mayor London Breed, and Kunal Modi, the administration's policy lead, told the committee the measure is intended to create "time certainty" so large contracts and leases do not stall and so the city can stand up more beds, a 24/7 drop-off stabilization center and additional behavioral-health staffing.

Members negotiated a set of amendments before forwarding the ordinance. The changes, read into the record by the mayor's office and adopted by the committee, include a reduced dollar threshold for board review of certain contracts (revised from $50 million to $25 million), added quarterly reporting to the Board on contracts and leases executed under the ordinance, clarifications that state or federal competitive requirements are not waived, and a sunset date for the broader authority of Jan. 8, 2026 (with bifurcated timing for some homelessness authorities). The committee also required tolling of the 45-day review clock in limited circumstances (for example, when the Board is on recess or a CEQA action is pending).

Mayor's office staff and administration witnesses emphasized that the ordinance preserves public reporting and that adopted amendments introduce additional safeguards. The budget and legislative analyst cautioned the committee that waiving municipal competitive procurement and budget requirements raises risks of higher costs and potential opportunities for waste, fraud or abuse and that FEMA and other federal programs have required competitive solicitations even during emergency responses in recent years. The analyst recommended the Board treat approval as a significant policy decision.

Public comment was split. Supporters, including public-safety and labor representatives and family members of people who have overdosed, urged rapid action; opponents and some advocacy groups urged clearer goals, metrics and continued protections for local-business contracting rules. Several speakers from the Local Business Enterprise (LBE) community asked for continued protections; the mayor's office said the adopted amendments do not alter existing LBE obligations and that it had met with LBE representatives before the hearing.

Rapid-rehousing contract amendment: Episcopal Community Services (Item 2)

The committee advanced to the full Board a proposed third amendment to a grant agreement between the Department of Homelessness and Supportive Housing (HSH) and Episcopal Community Services (ECS). The amendment would extend the grant term to June 30, 2027, and increase the not-to-exceed amount by about $11.5 million to a new total of roughly $21.5 million to expand adult rapid-rehousing services.

Emily Cohen, deputy director at HSH, said the contract expansion aims to grow capacity to serve 305 adults and that the program places people into market-rate units with time-limited rental subsidies and case management. Budget analyst Nick Menard told the committee ECS had missed the program's 75-day housing placement target in the prior two fiscal years (placements averaged over 100 days) but that recent process improvements and more efficient referrals had driven the average in the most recent six months to about 74.4 days.

Lunar New Year parking and transit subsidy (Item 6)

The committee initially considered an ordinance appropriating $250,000 from the general reserve to the Municipal Transportation Agency (SFMTA) to subsidize two hours of free parking at the Portsmouth Square garage and subsidize transit fares and ambassador support for Lunar New Year weekend. Joel Ramos, local government affairs manager for SFMTA, presented an estimate of forgone revenues: based on last year's activity and updated fares, SFMTA estimated roughly $202,292 in weekend fare revenue that would not be collected; Portsmouth Square garage entries and fee estimates were presented as well.

Chair Chan moved to amend the appropriation to increase funding (adding roughly $276,000) to cover estimated fare losses while striking language authorizing ambassador support, and to continue the item to the committee's Feb. 5 meeting for final action. The committee adopted that amendment and continued the item. The chair said the larger funding request would be revisited in the near-term hearing to allow the committee and administration to reconcile costs and impacts on other departments and next year's budget.

Port refinancing and appropriation ordinances (Items 3 & 4)

The committee advanced two bond/appropriation ordinances authorizing up to $25 million in refunding Certificates of Participation (COPs) to refinance outstanding 2013 COPs that funded Port capital projects, including infrastructure for the 34th America's Cup and Pier 27 cruise terminal improvements. Grant Carson of the Comptroller's Office presented a plan showing a not-to-exceed par amount of $25 million, assumed final maturity in 2042 and a good-faith true interest cost estimate near 4.47%. The office noted projected net-present-value savings would need to meet the city's 3% minimum threshold to proceed; the municipal advisor re-ran the analysis and reported current market rates could produce savings of more than 5% if issued promptly. The proceeds are intended to be reallocated to the Port, which will remain responsible for paying the debt service.

Public Defender Clean Slate grant (Item 1)

The committee approved a retroactive resolution authorizing the San Francisco Public Defender's Office to accept and expend a $250,000 grant from the Crankstart Foundation to support the office's Clean Slate unit for the period July 1, 2024'June 30, 2025. Elected Public Defender Manon Naju and Clean Slate manager Kelly Pretzer briefed the committee on services: Pretzer said, "Our clean slate unit provides a critical public safety service in San Francisco. We are the primary organization providing expungement services in San Francisco," and described a caseload of about 1,500 new applications and about 1,900 filed motions annually and more than 60,000 records expunged since 1999. The grant will fund a managing-attorney position and support a seven-person unit with attorneys, paralegals, a social worker and clerical staff.

SRO policy fellowship (Item 5)

The committee voted to send to the full Board a retroactive authorization for the Mayor's Office of Housing and Community Development to accept and expend an in-kind consulting gift valued at $345,000 from Coro Northern California to fund a two-year fellow to study San Francisco's single-room-occupancy (SRO) building stock and related policy options. Sheila Nicholas, director of policy at MOHCD, said the fellow will analyze data collection, rehabilitation and resident engagement across the city's more than 500 SROs.

Commercial vacancy tax exemption for construction impacts (Item 7)

The committee forwarded an ordinance exempting certain commercial storefronts from the commercial vacancy tax when a named neighborhood commercial district is affected by a city public-infrastructure construction project lasting more than 180 days in a calendar year. The treasurer's office explained that the Municipal Treasurer will rely on reports from DPW, PUC and SFMTA due each December 1 to identify impacted districts; exemptions will be applied automatically and, for two Taraval districts, applied retroactively for 2022'2024 with automatic refunds. The committee recommended the ordinance to the full Board.

Youth and family services: DCYF grant agreements (Items 9'12)

The committee approved four DCYF grant resolutions that collectively fund multi-year youth and family services with nonprofit providers. The department said it reorganized contracts this cycle by result area (school readiness and success, college/work readiness, family supports and health). Awards forwarded to the Board include two grant packages with Community Youth Center of San Francisco (about $13.7 million and $11.7 million across multiple programs and strategies), Instituto Familiar de la Raza (about $12.9 million) and Richmond District Neighborhood Center (about $10.4 million). DCYF noted stronger, outcomes-oriented performance measures for academic supports in this cycle; the committee also accepted administrative corrections to counts reported in the Community Youth Center package (adjusting counts of youth served on the record).

Leases and licenses (Items 13'15)

The committee advanced multiple real-estate actions: a retroactive lease allowing the Human Services Agency to occupy roughly 3,300 square feet at 745 Franklin Street (to colocate with the state Employment Development Department) with corrected term language to end Dec. 31, 2029; a retroactive extension of the Department of Public Health's Chinatown/North Beach clinic lease at 729 Filbert Street (five-year extension retroactive to Feb. 1, 2024) at a reduced rate of about $39.50 per square foot; and a no-rent five-year license for a portion of a Coast Guard-owned facility on Yerba Buena Island for a San Francisco Police Department substation (the city will cover operating expenses and improvements). The committee asked the departments to provide operational details and cost information for the clinics and station as the items proceed to the full Board.

Votes at a glance (committee actions)

- Item 1 — Public Defender, Clean Slate grant (Crankstart Foundation $250,000). Motion: forward to full Board with positive recommendation. Outcome: passed (3-0). Recorded votes: Vice Chair Matt Dorsey: aye; Member En Gardio/Engadio/Angadio: aye; Chair Connie Chan: aye. - Item 2 — HSH/Episcopal Community Services third amendment (extend to 6/30/2027; +$11.5M, total ~$21.5M). Motion: forward to full Board with positive recommendation. Outcome: passed (3-0). - Items 3 & 4 — Ordinances authorizing refunding Certificates of Participation (not to exceed $25M) and related appropriations for Port refunding. Motion: forward to full Board with positive recommendation. Outcome: passed (3-0). - Item 5 — MOHCD acceptance of in-kind gift from CORO Northern California (valued $345,000) for SRO policy fellow. Motion: forward to full Board with positive recommendation. Outcome: passed (3-0). - Item 6 — Appropriation for free parking and transit for Lunar New Year. Chair moved an amendment to increase the appropriation (additional ~$276,000), strike ambassador funding and continue the item to Feb. 5 for final action. Amendment outcome: passed (3-0); item continued to Feb. 5 as amended. - Item 7 — Ordinance exempting commercial storefronts from vacancy tax for districts affected by city-led projects >180 days. Motion: forward to full Board with positive recommendation. Outcome: passed (3-0). - Item 8 — Ordinance amending administrative code to accelerate the city's response to homelessness, behavioral health and substance-use crises (time-limited waivers, 45-day board review clock, reporting and sunset). Committee adopted a package of mayoral amendments and forwarded the ordinance to the full Board with a positive recommendation. Outcome: passed as amended (3-0). - Items 9'12 — DCYF multi-year grant agreements (Community Youth Center, Instituto Familiar de la Raza, Richmond District Neighborhood Center; total awards described above). Motion: forward to full Board with positive recommendation (item 9 amended to correct youth counts). Outcome: passed (3-0). - Item 13 — HSA lease at 745 Franklin Street (approx. $105,000 annual base rent; corrected term to end 12/31/2029). Motion: forward to full Board as amended. Outcome: passed (3-0). - Item 14 — DPH lease amendment for 729 Filbert Street (five-year extension retroactive to 02/01/2024; reduced rent to ~$39.50/sf). Motion: forward to full Board with positive recommendation. Outcome: passed (3-0). - Item 15 — License with U.S. Coast Guard for use of a portion of 1199 Forest Road Building 278 (Yerba Buena Island) for SFPD substation, five-year term, $0 rent (city pays operating costs). Motion: forward to full Board with positive recommendation. Outcome: passed (3-0).

Why it matters

Committee members and administration officials repeatedly described the package as an attempt to move faster on a set of intertwined public-health, housing and public-safety problems that have intensified in recent years. Supporters said the measures are a pragmatic response to rising overdose deaths and street conditions; critics warned that expedited procurement and relaxed procedures increase the need for transparency and safeguards and urged clearer service metrics and protections for local-business contracting rules.

What comes next

Most items were forwarded to the full Board for consideration on Feb. 4 (scheduling noted on the record); the Chair continued the Lunar New Year appropriation to the committee's Feb. 5 meeting for final action. The emergency ordinance and the other items will return to the Board for final votes. Committee members asked the administration for quarterly reporting on contracts executed under the emergency authority and for further details on program-level performance and operational plans for key leases and shelter expansions.

Speakers quoted in this article appear in the committee roster and in the attached speaker list submitted with committee records. Direct quotes are drawn from the committee transcript and attributed accordingly. No asserted facts appear beyond what presenters, the budget analyst and the committee recorded on the record.