Committee forwards extensions for Whitcomb SIP hotel amid Roomkey/FEMA funding questions

The Budget & Finance Committee voted to forward two amendments to continue operations at the Whitcomb (SIP Site #10, 1231 Market St.) through March 31, 2023, while the city completes housing placements and site demobilization.

Dylan Schneider of HSH said Item 5 would amend a grant with 5 Keys Schools & Programs to extend the agreement through March 31, 2023, increase the not‑to‑exceed amount by about $6.5 million (total ~$27.23M) and allow earlier termination if demobilization is faster than expected. Item 6 would amend the booking agreement with the building owner to continue use of up to 459 rooms and add about $9.6 million (total approximately $88.6M) to cover continued occupancy and services through March 31, 2023. Schneider said as of Sept. 6 there were 418 guests on site and that HSH had permanently housed approximately 1,292 guests from the SIP program overall.

Supervisors sought clarity about the state Project Roomkey allocation and FEMA reimbursement: Dan Kaplan (HSA) and Anna Dunning (Acting Mayor’s Budget Director) said San Francisco’s Roomkey allocation (about $32M) must be spent down by June 2023 and that FEMA had been reimbursing large COVID response costs (historically at 90% for eligible costs), although FEMA extensions have been issued in short windows and reimbursements may arrive months later. HSH said it would use contingency funds (about $6M) to cover damages where needed and city attorney staff will conduct walkthroughs with cost consultants to limit damage claims.

HSH described the demobilization approach: most SIP guests have been moved to permanent housing or new PSH units and the city will prioritize higher‑vulnerability placements; flexible subsidies and existing vacancies will be used to place people into permanent options where possible. Public comment included a resident describing long‑standing homelessness and grievances about policing and property issues and a 5 Keys representative who urged the committee to support completing the housing work with dignity. The committee recorded a unanimous vote among present members to forward both items to the full Board with positive recommendations.