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Committee endorses amended $89.4M master-lease agreement with Tenderloin Housing Clinic
Summary
The Budget & Finance Committee forwarded a retroactive grant agreement with Tenderloin Housing Clinic to continue property management and supportive services for 1,566 permanent supportive units; the BLA recommended trimming contingency from 19% to ~12%, an amendment the department accepted.
The Budget and Finance Committee on July 15 forwarded, by unanimous committee recommendation, a retroactive grant agreement between the City and Tenderloin Housing Clinic (THC) to manage 16 master-lease permanent supportive housing sites covering 1,566 units. The Department of Homelessness and Supportive Housing (HSH) presented the agreement, which staff had initially proposed at a $95 million not-to-exceed amount and which the Budget and Legislative Analyst recommended reducing to $89.4 million by lowering contingency from 19% to 12.
Gigi Whitley, Deputy Director for Administration and Finance at HSH, said the agreement would go into effect July 1 and run through Feb. 29, 2024. She described the scope as continuing property management, front-desk coverage and core support services such as intake, assessment, case management, benefits advocacy and wellness checks. HSH presented performance measures for the provider, including a one-year housing retention goal of 90% and an 82% client-satisfaction level in 2018–19.
BLA analyst Sevin Campbell told the committee the report shows a 19% contingency under the $95 million figure and recommended reducing that contingency to align with city norms, which would lower the not-to-exceed amount to $89.4 million; department staff indicated agreement with that change. During public comment, multiple tenants and provider representatives urged the committee to approve continued funding and highlighted services that help formerly homeless individuals remain housed.
Why it matters: the agreement funds ongoing management and support services for more than 1,500 units of permanent supportive housing — a central element of the city’s homelessness response — and the committee’s amendment narrows the contingency to reduce the city’s fiscal exposure.
Next steps: committee members voted to forward the amended item to the full Board for final action. HSH will confirm department agreement with the amended amount and continue routine contract monitoring and annual performance reporting.
Quote: "This agreement goes into effect as of July 1," HSH Deputy Director Gigi Whitley said during the presentation.
Provenance: discussion and presentation began at SEG 1019 and the committee vote concluded at SEG 1443.
