Committee advances package of supportive-housing contract and subsidy amendments, raises monitoring questions

On May 25 the Budget & Finance Committee forwarded a set of amendments and grant actions affecting supportive housing and rental-subsidy programs, moving several high-dollar items to the full Board with positive recommendations while pressing the Department of Homelessness and Supportive Housing for monitoring and updated budgets.

Emily Cohen, deputy director at HSH, presented amendments affecting multiple contracts:

• A second amendment to the TIDES Center agreement (DISH property management) to extend services and raise the not-to-exceed amount to approximately $53.4 million through June 30, 2026; HSH cited two additional years of services, lower tenant revenue after a 30% rent cap and COVID-related costs as drivers.

• A first amendment to a grant with Tenderloin Housing Clinic covering 16 master-leased hotel sites, increasing the amendment to about $132.9 million to cover lease-cost increases, pandemic-related expenses and contingency for capital repairs.

• A first amendment to Brilliant Corners to expand the Flexible Housing Subsidy Pool from 200 to 500 annual subsidies and raise the program budget to about $40.2 million; HSH said the allowable subsidy would increase to roughly $1,995 per month (100% of FMR) and tenants would pay 30% of income.

Budget and Legislative Analyst staff recommended approval for the amendments but urged on-site monitoring and an updated grant budget reflecting planned staffing increases and capital repairs. Committee members repeatedly focused on contingency sizes (noting contingency ratios in the high teens or low 20s percent in the files), asked for clearer documentation of acquisition and procurement decisions, and pressed the department to return with on-site monitoring reports.

Supervisor discussion also highlighted the mayor’s budget announcement of proposed investments — roughly $67.4 million over two years — to raise wages and case-management ratios across the supportive-housing portfolio; HSH said those mayoral proposals are separate budget items and would be considered in the budget process.

Public comment included a statement from Tabitha Allen of the Tenderloin Housing Clinic praising providers’ performance and urging committee support for the funding.

What’s next: The committee forwarded these amendments to the full Board. BLA and supervisors asked HSH to submit updated grant budgets and an on-site monitoring report before final Board consideration.