Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Homelessness Supportive Housing topic
No spam. Unsubscribe anytime.
Committee advances Project Homekey plan to buy Granada Hotel and create 232 units of supportive housing
Summary
The committee recommended that the full Board accept up to $45 million in state Homekey funds to acquire and rehabilitate the 232‑unit Granada Hotel at 1000 Sutter Street as permanent supportive housing, with an aggressive timeline and a package of city and private bridge financing.
The Budget & Finance Committee voted to move to the full Board a resolution authorizing the city to accept and contract for up to $45 million in California Department of Housing and Community Development Project Homekey funds to acquire and rehabilitate the Granada Hotel at 1000 Sutter St. The plan would convert the 232‑unit SRO into permanent supportive housing, reserving roughly 80 currently occupied units for incumbent low‑income tenants and assigning about 152 units through the city's coordinated entry system.
Gigi Whitley of the Department of Homelessness and Supportive Housing described the project as part of a rapid state program funded through the federal CARES Act that requires funds to be spent by Dec. 30, 2020. The project team must close the acquisition by Nov. 13 to meet the state's time line; the state requires 50% occupancy within 90 days of closing.
Fiscal package and partners: Whitley outlined leverage and partners — the Homekey award (up to $45M) is expected to cover most acquisition and rehabilitation; the Mayor's Office of Housing and Community Development and nonprofit partners will provide bridge and permanent financing. Severn Campbell of the Budget & Legislative Analyst summarized the city contribution plan: a $7.6M acquisition loan and an estimated $13M repayment to the Housing Accelerator Fund; the city would also provide an estimated $14.6M in operating subsidy over five years funded by Proposition C. Episcopal Community Services (ECS) will be the nonprofit owner/operator and the Housing Accelerator Fund will provide bridge rehab financing.
Why it matters: The conversion would add 232 units of permanent supportive housing quickly — city staff framed it as an opportunity to move people from shelter and temporary hotel placements into stable housing at a lower per‑unit city cost than many alternatives.
Action taken: The committee voted to move the item to the full board with a positive recommendation. Supporters (ECS and the Housing Accelerator Fund) urged approval, citing speed and lower per‑unit city cost; BLA recommended approval as consistent with city policy.
Next steps: Staff said closing must occur quickly to secure state funds; the full Board will consider the standard agreement for the grant and city matching commitments.
