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Committee backs 15-year operating subsidy for Kelly Cullen supportive-housing project
Summary
The committee recommended a 15-year local operating subsidy agreement totaling up to $18,475,118 to support 172 units (plus two managers' units) at the Kelly Cullen Community (220 Golden Gate), including a ground-floor public health clinic to serve tenants and the Tenderloin neighborhood.
The Budget & Finance Committee recommended Board approval of a 15-year local operating subsidy program (LOSP) grant agreement for the Kelly Cullen Community at 220 Golden Gate Avenue, authorizing the Mayor's Office of Housing to execute a contract not to exceed $18,475,118.
Wilson Li of the Mayor's Office of Housing introduced the item and Lydia Ely, the project's manager, described the LOSP's purpose: to provide a local operating subsidy when other sources are not available and thereby leverage capital financing for supportive housing. Ely said the LOSP has operated since 2005 and supports projects where federal sources are scarce. "The project at hand is the Kelly Cullen community," she told the committee, and it "will provide 172 units plus 2 managers' units for formerly homeless individuals with the greatest medical, behavioral health, and housing needs." Construction was described as wrapping up and tenant move-in scheduled to begin Dec. 1, with full occupancy by May 2013.
Ely and Department of Public Health staff said the project preserves historic features and will include an 11,000-square-foot public health clinic on the ground floor that will serve both building tenants and the wider Tenderloin community. DPH's Corinne Buchanan said Tom Waddell and the Housing and Urban Health Clinic are combining services and will move primary care functions to the Kelly Cullen site while Tom Waddell remains open as an emergency site.
Funding for the project combines multiple sources: Ely cited ARRA stimulus funds (about $50,000,000 for the broader program referenced in the transcript), local city funds (about $20,000,000), state funds through the Mental Health Services Act, and private equity. Ely also said the project received a Social Innovation Fund grant that will fund a two-year evaluation with potential for extension; TNDC confirmed the grant and urged committee support.
Budget analyst Mr. Rose recommended approval, reporting an estimated average subsidy per unit and the 15-year total of $18,475,118 drawn from general funds, and suggested a DPH report to the committee on health-and-housing outcomes from the NYU study. Public comment included Don Falk of the Tenderloin Neighborhood Development Corporation, who praised the project and highlighted partnership and programmatic benefits.
Supervisor Jane Kim moved approval; the committee forwarded the resolution as a committee report (taken without objection) and the Chair requested a site tour in the coming month.
