Commission approves multiple contract modifications, Cardea pilot and appointments

The Homelessness & Supportive Housing Commission voted on April 4 to approve several contract modifications and new agreements affecting the city's homelessness response system.

Key votes and outcomes

- Compass Family Services: The commission approved two contract modifications. Item 3 (flexible housing subsidy pool) extends the agreement through June 30, 2026, and adds roughly $26 million plus a $3 million contingency (revised total ~ $29 million). Staff said Compass was behind on invoice submissions but reported 132 of 165 slots enrolled (81%) with 49% of enrolled households housed.

- Compass Family Services: Item 4 (Family Housing Ladder) was approved, adding roughly $11 million plus $1 million contingency (revised total about $13 million). Staff said slower placement rates reflect that many eligible households are already in site-based permanent supportive housing and that strategies to improve placements are in development.

- Conrad House / McAllister Hotel: Commissioners approved a modification to the McAllister Hotel agreement (Jan. 1, 2021'Jun. 30, 2026) that adds about $4 million plus a 20% contingency (revised total cited ~ $12 million). Commissioners questioned building habitability and elevator modernization; HSH said it provided one-time capital funds for security and safety improvements and that the building is eligible for an elevator modernization NOFA.

- Compass SF Home (rapid rehousing): A new agreement to provide rapid rehousing subsidies to 44 families was approved (program operating since Feb. 2018; subsidy terms 12'24 months; per-household budget cited at roughly $57,580). Commenters and providers urged longer subsidies for high-acuity families.

- Cardea Health PSH pilot (Kelly Cullen Community): The commission approved a 20-month, $2.9 million pilot for on-site nursing, personal care and medical case management to serve 40'60 residents with acute needs. Staff said the pilot will bill Medi-Cal waiver programs during ramp-up and aim for sustainability after the pilot period.

- Appointment: Margaret McNulty was confirmed to seat 11 on the Local Homeless Coordinating Board; McNulty introduced herself and cited tenant leadership experience.

All votes on these items were taken by voice vote and recorded as passing with Ayes from Chair Jonathan Butler, Vice Chair Bevan Dufty, Commissioner Katie Albright and Commissioner Kristen Evans. Commissioners discussed contractor invoice lags, oversight of older buildings, and program placement strategies before voting.

Next steps

Several items noted upcoming Board of Supervisors hearings (some grant amendments) and staff flagged continuing coordination with providers and landlords. Commissioners requested follow-up information and slides on placements, invoices and vacancy strategies at a future meeting.