Committee forwards housing, lease amendments, grants and school TEFRA financings to full Board

On Sept. 13 the Budget & Finance Committee advanced a package of property, lease and grant items to the full Board of Supervisors, including housing purchases, lease extensions, rent forgiveness and tax-exempt financings.

Homekey and supportive housing: The committee forwarded a resolution authorizing the Department of Homelessness and Supportive Housing to accept and expend approximately $7.48M in Homekey grant funds for acquisition and operation of a 25-unit permanent supportive housing site at 3061 Sixteenth Street, with a city match of about $1.6M and a minimum five-year operating subsidy supported by Proposition C. Dylan Schneider (HSH) described the property (25 studio units, private bathrooms, community kitchen) and staff emphasized the project aligns with prior Board authorization to acquire the property.

Lease extensions and rent forgiveness: The committee approved a 10-year extension for the Camelot Hotel at 124 Turk Street to continue 55 units of permanent supportive housing; base rent is about $563,000 per year with CPI-based escalators, and BLA estimated about $6.5M in rent over the term. The committee also approved a fourth amendment to the lease with the New Conservatory Theater Center (NCTC) that forgives roughly $50,000 of rent for Jan'June 2021 and extends the lease through 2033 to support capital upgrades and program expansion.

Grants and capital projects: Public Works requested acceptance of approximately $1.2M from the California Department of Forestry and Fire Protection (CAL FIRE) for a South Of Market street-tree nursery workforce program; the grant pairs with local and state funds to support staffing and training. Recreation & Parks requested an amendment to accept a DTSC remediation grant for 900 Innis (reduced to approximately $1.384M in the amendment) to cover increased disposal costs discovered during remediation; the committee amended the amount and forwarded the item.

School financings (TEFRA): The committee approved TEFRA-required resolutions allowing tax-exempt revenue obligations to be issued by the California Enterprise Development Authority for the Urban School of San Francisco (not to exceed $10M) and San Francisco University High School (not to exceed $49M). The controller's Office of Public Finance and borrower representatives said these financings impose no fiscal obligation on the City and that public hearings required by federal tax rules were held.

Sheriff's lease: The committee continued an item authorizing the director of property to extend a lease at 1740 Folsom Street (sheriff's use) to Sept. 28 at the Division of Real Estate's request.

Next steps: Each of these items will appear on the full Board agenda for final action. Staff presentations and BLA analyses accompanied each item in committee.