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Committee forwards six Local Operating Subsidy Program contracts to full Board to support permanent supportive housing

Government Audit and Oversight Committee · June 26, 2014
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Summary

The committee approved forwarding six LOSP contract resolutions that add roughly 238 permanent supportive housing units and expand the local operating subsidy portfolio; BLA projected a 15‑year general‑fund cost of about $46.5M for the six contracts and recommended annual reporting improvements.

The committee considered items 2 through 7, six resolutions authorizing Local Operating Subsidy Program (LOSP) contracts to provide operating subsidies for formerly homeless households.

Sophie Hayward and Anne Romero of the Mayor’s Office of Housing and Community Development described the LOSP as a 15‑year grant program that pays the difference between operating costs and rental revenue and is designed to support permanent supportive housing tied to the city’s 10‑year plan to end chronic homelessness. Romero said the six contracts would expand the program portfolio by approximately 238 units, bringing LOSP‑supported units to the neighborhood totals described in the packet.

The Budget and Legislative Analyst’s Office noted that the addition of these contracts will raise LOSP annual general‑fund commitments (projected to grow to about $16.9 million per year) and that the six new contracts carry an estimated 15‑year general‑fund cost of roughly $46.5 million. The BLA recommended approval of the contracts but urged the Mayor’s Office to provide an annual written update on supportive housing and LOSP program performance to improve transparency.

There was a brief procedural snag: the committee initially moved to forward items 2–7 with a positive recommendation, then rescinded that vote to take public comment; no public comment was offered, and the committee again moved and passed (without objection) to forward the six LOSP resolutions to the full Board.

The committee’s referral will send the LOSP contracts to the Board of Supervisors for final legislative action; BLA and MOHCD officials committed to follow‑up reporting on program performance and fiscal exposure.