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HSH flags $876M city deficit, plans cuts and program shifts as shelter demand rises
Summary
HSH director warned of an $876 million city general‑fund deficit and mayoral instructions for 15% permanent spending reductions; commissioners pressed on impacts while HSH announced wind‑downs at Candlestick VTC and the Kova shelter and outlined shelter, placement and prevention metrics.
Director McSpadden told the San Francisco Homelessness and Oversight Commission that the mayor’s budget office projects an $876,000,000 general‑fund deficit over the next two years and has instructed departments to propose ongoing 15% permanent spending reductions beginning in fiscal year 2025‑26. McSpadden said HSH estimates those reductions would amount to roughly $48,000,000 for the department and that one‑time cuts or new revenue cannot be used to offset the target.
The department also presented system performance and program updates. McSpadden said San Francisco’s Homeless Outreach Team conducted 3,239 engagements in October and that coordinated‑entry assessments rose versus the prior year. HSH reported that the Emergency Rental Assistance Program (SF ERAP) served 490 households this month with an average assistance of $5,732 per household and that prevention services used approximately $1,770,000 in October. HSH said its funded inventory includes about 13,400 housing units across site‑based and scattered‑site programs.
McSpadden described two program wind‑downs. The Candlestick Vehicle Triage Center (VTC), a temporary program to address vehicular homelessness, stopped new intakes in November and is being wound down by spring 2025; McSpadden cited operational challenges, limited positive exits and high program cost and said HSH will work with each guest to identify alternative placements. HSH also said it will close the Kova non‑congregate shelter in spring 2025 after community concerns about illegal activity and limited support from the Board of Supervisors; operators and affected guests were notified and HSH said no one will be removed without an offer of shelter or housing.
Commissioners asked for clarification about whether the $48 million figure represented an assumed cut to a specific program; McSpadden said it was an overall estimate and not a decision about particular line items. Commissioners also pressed staff on criteria used to judge program effectiveness and on data limitations related to reservation‑list contacts (pseudonyms and incomplete records). HSH said it has adjusted the bed reservation system (increasing names pulled per available bed, centralizing wait‑list tracking and offering beds via outreach if reservation windows fail) to improve utilization and reduce churn.
McSpadden said HSH will continue working with the mayor‑elect’s transition team on shelter goals and that further budget details are expected the week following the presentation.
