Budget Committee advances plan to buy 681–687 Ellis for permanent supportive housing

The San Francisco Board of Supervisors’ Budget & Finance Committee on April 27 recommended the full Board approve a resolution authorizing the city to acquire property at 681–687 Ellis Street as part of its permanent supportive‑housing portfolio.

Deputy Director Emily Cohen of the Department of Homelessness and Supportive Housing (HSH) told the committee the property contains 74 rooms with private bathrooms, a lobby, community lounge, office space, laundry facilities and a commercial kitchen. HSH proposes to use the site to provide affordable housing and on‑site social services for adults exiting homelessness. Cohen said the department would pay about $19.9 million plus an estimated $40,000 in closing costs and may apply for a state HomeKey grant to supplement local funds.

The Budget and Legislative Analyst, Nick Menard, summarized the office’s review, saying a third‑party appraisal confirmed the purchase price and that the department estimates roughly $6.6 million in immediate improvement costs and about $1.5 million a year in operating costs once the building is leased up. Menard said the BLA recommended approval and that funding is expected to come from Proposition C.

Chair Supervisor Hillary Ronan and other committee members pressed HSH on oversight and operator selection after referencing a recent San Francisco Chronicle investigation into conditions at some supportive‑housing sites. "How can we ensure oversight over whatever organization manages the building?" Ronan asked. Cohen said HSH will issue a solicitation of interest to select a property manager and service provider, monitor contracts through program and contract monitoring functions, visit sites and work with the Department of Building Inspection to address code violations when they occur.

HSH staff also said tenants would be selected through the city’s coordinated entry system and that the department aims for a 1:25 case‑manager‑to‑client ratio in permanent supportive housing. Dan Adams of HSH described a direct acquisition model under which the city holds initial ownership, rehabilitates and operates properties, and evaluates whether to transfer assets to community ownership over time.

A Glide policy associate, Eliana Bender, called in during public comment to urge approval, saying nonprofit partners view hotel and building acquisition as a cost‑effective strategy to expand permanent supportive housing.

The committee voted to forward the resolution to the full Board with a positive recommendation (three ayes). The item is expected to appear on the Board of Supervisors’ May 3 agenda unless otherwise noted.

What’s next: The full Board will consider the purchase agreement and any HomeKey grant acceptance if HSH proceeds with an application. The department said it would return to the Board to accept any state grant funding tied to the purchase.