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Supervisors approve 10‑year master lease of Pacific Bay Inn to house formerly homeless residents
Summary
The Budget & Finance Committee approved a 10‑year master lease for the Pacific Bay Inn (520 Jones St.) so the Department of Public Health can continue housing about 75 formerly homeless residents in its Direct Access to Housing program; lease rate is $46,200/month with CPI adjustments.
The Budget and Finance Committee on March 25 approved a 10‑year master lease that will allow the Department of Public Health (DPH) to continue operating the Pacific Bay Inn, 520 Jones Street, as permanent housing for roughly 75 formerly homeless residents enrolled in DPH’s Direct Access to Housing program.
Amy Brown, the city’s director of property, told supervisors the lease would begin about May 1 and run for 10 years with two additional 10‑year options. Brown said the proposed rent is $46,200 per month — about $6,600 per unit per year — and that annual CPI adjustments would be no less than 2% and no more than 6%.
Deborah Newman of the Budget Analyst’s Office noted the proposed monthly charge is about a 19% increase over current payments the department makes to a nonprofit operator but said the new rate compares favorably with other master‑leased residential hotels in the DAH portfolio and with HUD fair‑market rents for the region.
Mark Trotz, director of housing and urban health at DPH, said the Pacific Bay Inn is in “pretty nice shape,” highlighted private baths as a program advantage for medically complex residents, and described recent roof and other upgrades negotiated with the owner during the renewal process.
During public comment, Francisco DeCosta and representatives of tenant advocacy groups urged longer‑term investments for people with serious mental‑health needs and raised complaints about some SRO operator practices elsewhere. Jazzy Collins said transgender residents had reported being charged for overnight guests at some SROs; DPH staff replied they were not aware of such charges at the Pacific Bay Inn and said the Master Lease project is managed by professional property management and posts the city’s visitor policy.
Supervisor Chiu moved the item forward with recommendation and the committee approved the lease to proceed to the full Board of Supervisors.
What happens next: the item was forwarded with recommendation; the full board will consider final approval and the lease documents before the city executes them.
