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Committee backs plan to buy 624 Laguna to preserve assisted‑living beds

Budget and Finance Committee · July 10, 2024
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Summary

The committee recommended that the full Board approve purchase of 624 Laguna Street — a 56‑bed assisted living facility — to preserve local licensed beds for vulnerable populations; the purchase price and funding source were discussed and forwarded with a positive recommendation.

The Budget & Finance Committee on July 10 voted to forward a resolution authorizing the city to purchase 624 Laguna Street, a vacant assisted‑living facility licensed for 56 beds, for use by the Department of Public Health to preserve and expand assisted living capacity in San Francisco.

Director of Real Estate Andrico Penek said the Department of Public Health seeks the acquisition to preserve services and bring licensed beds physically back within the city. The property was described as a 17,770‑square‑foot assisted‑living facility licensed for 56 beds; the transcript includes both a cited purchase price of approximately $13,800,000 (BLA) and a higher figure listed in presentation slides; the Budget and Legislative Analyst reported that the negotiated cost is supported by an appraisal and that the acquisition is funded by the Proposition C homeless gross receipts tax.

BLA staff noted that the action primarily relocates beds already in the broader regional system to within San Francisco, rather than increasing net system capacity, and recommended approval with noted questions about bed typology and future planning for bed expansion. Supervisor Mandelmann asked for further work on an inventory and longer‑term beds strategy; DPH staff said current operating funds constrain net capacity increases and that acquisition preserves capacity within operating budgets.

No public comments were registered on the item and the committee voted to forward the purchase agreement to the full Board with a positive recommendation.