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Committee urges quick vetting of hotels for acquisition or long‑term lease to expand supportive housing
Summary
A resolution urging city departments to identify and evaluate hotels for purchase or long‑term lease to convert to permanent supportive housing passed committee amendment and was referred to the Board; departments were asked to return in 3–4 weeks with top candidate sites.
The Government Audit and Oversight Committee on Feb. 18 adopted amendments and sent to the full Board a resolution urging city housing and homelessness agencies to work with state partners on identifying hotels suitable for purchase or long‑term lease to expand permanent supportive housing.
Sponsor Supervisor Ahsha Safaie framed the resolution as a "historic opportunity" to take advantage of Homekey funding, Prop C/I resources and low interest rates to acquire hotels that could be converted into supportive housing more quickly and cheaply than new construction. The resolution asks the Department of Homelessness and Supportive Housing (HSH), the mayor’s office for housing and community development (MOHCD), Real Estate Division, the controller and the California Department of Housing and Community Development to identify possible long‑term acquisitions or leases and return within weeks with a prioritized list.
Community advocates and the Our City, Our Home oversight committee emphasized urgency and potential cost savings. Jennifer Friedenbach and others estimated acquisition averages around $300,000 per room (including rehab) compared with higher per‑door costs for new construction; they also cited an estimated operating cost of about $13,600 per person per year for two recently purchased hotels. Controller Ben Rosenfield told the committee that approximately $189 million in Prop C funds in relevant buckets remain unallocated this fiscal year and that roughly $170 million is projected next year — figures advocates said could be leveraged for acquisition and operations alongside state Homekey funds.
City departments described an active RFI (request for information) process that generated dozens of responses and a vetting process focused on vacant or lower‑occupancy hotels, retrofit feasibility (elevators, ADA, plumbing), and operating funding. City staff cautioned that some potential funding streams are restricted and not directly fungible for acquisition, and that rapid real‑estate negotiations may require confidentiality to avoid undermining purchase negotiations.
Action and next steps: The committee adopted non‑substantive clarifying amendments and referred the resolution to the full Board. Departments were asked to return in about 3–4 weeks with top candidate properties, and to coordinate funding strategies that may include Prop C/I, Homekey and other federal/state resources.
