Committee advances urging resolution on incentive pay and continues hotel appropriation for more review

The Budget & Finance Committee on April 29 moved an urging resolution calling on city departments to authorize additional funds and supports for contracted nonprofit homeless‑service providers — including guaranteed testing, flexible contract spending and incentive pay — to the full Board without recommendation, and continued a proposed $17.8 million appropriation for additional hotel rooms for COVID‑19 isolation to the call of the chair.

Supervisor Matt Haney framed the resolution as an effort to shore up frontline nonprofit workers who provide shelter, drop‑in and outreach services and who face greater exposure during the pandemic. Emily Cohen and Gigi Whitley of the Department of Homelessness and Supportive Housing (HSH) described a package of actions HSH has taken: $511,000 per month in flexible contract augmentation targeted to frontline staff earning roughly $24/hour or less, childcare supports, access to TestSF testing for symptomatic residents and staff, increased janitorial and meal services, and use of hotel rooms for staff and clients.

Dan Doncher of the Budget and Legislative Analyst presented a policy review that found departments have been operating consistently with Comptroller guidance permitting budget flexibility for nonprofit contractors during the emergency; the BLA documented HSH’s $511,000 monthly augmentation and outlined processes used to allocate funds and track costs. HSH staff said they calculated the augmentation as 120% of the department’s portion of salary costs for direct‑service FTEs earning $24/hour or less and set a $1,000 minimum per provider per month, but staff acknowledged that the formula does not cover all frontline workers (some staff paid from rental revenue or other sources were not captured) and that providers should report additional COVID‑related costs for reimbursement.

Public commenters representing SEIU, homelessness service providers and advocacy groups urged universal on‑site testing, prioritization of PPE and larger, long‑term funding commitments; provider speakers said the actual cost of incentive pay often far exceeds formulas and current allocations and described gaps for workers who do identical work but whose pay sources differ.

On hotels, Supervisor Aaron Peskin and others debated a proposed $17.8 million supplemental appropriation from the General Reserve to secure roughly 1,200 rooms for two months at an average assumed rate of $237 per room per day. Peskin urged further analysis and suggested alternative reserves and delayed or canceled projects could be reprioritized; HSA staff and other supervisors warned that moving HSA service centers mid‑crisis would harm vulnerable clients and that the city has limited time to negotiate leases. After public comment and discussion the committee continued the hotel appropriation to the call of the chair to allow additional analysis and negotiation.

What’s next: The urging resolution will go to the full Board without a committee recommendation for broader Board consideration; the hotel appropriation was continued for further review of occupancy, existing hotel contract vacancies and alternative funding or savings.