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Supervisors approve 10‑year lease extensions for two master‑leased supportive hotels; committee presses for acquisition plan
Summary
The committee approved forwarding lease extensions for the Windsor Hotel (104 SRO units) and Hotel LaNain (92 SRO units) to the Board with positive recommendation, and members pressed HSH and Real Estate for a citywide inventory and a strategy on whether to acquire long‑leased PSH buildings or continue master leases.
The Budget & Finance Committee voted to forward to the Board two resolutions authorizing the property director to exercise 10‑year lease extension options for master‑leased permanent supportive housing at 234–238 Eddy Street (Windsor Hotel, 104 SRO units) and 730 Eddy Street (Hotel LaNain, 92 SRO units). Claudia Gorham from the Real Estate Division presented the lease terms, which set new monthly base rents tied to government rent indices and included annual adjustments. She said transaction staff negotiated the leases to use SRO unit rent indices where applicable, which reduced the monthly base rents compared with using higher efficiency unit rates.
Supervisors asked about long‑term strategy, including whether the city had any right of first refusal or plans to acquire units rather than continue master leases. Real Estate staff said the city now negotiates rights of first refusal in newer leases (since roughly 2014) and would pursue acquisitions only after appraisal, negotiation and mayoral/ MOHCD prioritization; HSH said acquisition remained a preferred option where feasible but that master leases may still be necessary for rapid provision of PSH. Members directed staff to return with an inventory of all master leases, units, contract terms and escalation history to support decisions about leasing versus acquisition.
The committee accepted a technical BLA amendment to correct unit counts and forwarded the two lease items to the Board with a positive recommendation.
