Board committee advances $40.6 million in rental assistance amid dispute over La Raza CRC funding

The Budget & Finance Committee on March 23 approved amended measures to expand San Francisco’s emergency rental assistance program and to authorize roughly $40.55 million in grant amendments to three community providers, forwarding both items to the full Board with a positive recommendation.

The Mayor’s Office of Housing and Community Development presented two linked items: an ordinance (item 7) to let the Rent Resolution and Relief Fund provide direct assistance to low‑income tenants, authorize grants to nonprofit community‑based organizations to administer relief, and extend the fund’s use to June 30, 2023; and a resolution (item 8) to expand three existing provider contracts above the $10 million threshold, which requires Board approval. MOHCD said the changes align local rules with the department’s local rent relief program as the state portal closes on April 1.

According to MOHCD, the amended resolution would expand grant authorizations to Eviction Defense Collaborative, Mission Neighborhood Centers and Catholic Charities while redistributing previously earmarked amounts for other smaller providers. MOHCD staff said $33.9 million of the authorized funds will be used for rental assistance and that their estimate is intended to reach about 2,259 households in need; the total local pool cited in committee discussion combined Prop I, Prop C and departmental funds to about $62 million citywide when accounting for funding administered by other departments.

The package includes an administrative amendment removing La Raza Community Resource Center from the list of grantees in the current round. MOHCD said its controller’s office requires a fiscal certification before providing advances to a grantee and that La Raza notified MOHCD that it was conducting an internal review; MOHCD’s fiscal team was unable to certify advances for that organization pending review. MOHCD told the committee it would proactively review La Raza’s independent audit and work with the controller’s office; the department said it could reallocate remaining available funds to La Raza later if certification requirements were met.

The meeting drew extended public comment: more than 40 speakers—La Raza staff, board members, volunteers and clients among them—urged the supervisors to restore an $8.4 million allocation to La Raza, saying the organization has deep community trust and bilingual capacity in the Mission. Other callers and witnesses said an outside investigation cleared La Raza on financial mismanagement. In contrast, at least one former employee who testified by phone raised concerns about program delays and management. MOHCD said La Raza retains roughly $900,000 from an earlier tranche to continue outreach and that remaining local funds could be redistributed among partners if and when certification criteria are satisfied.

Supervisor comments emphasized urgency because the state rent relief portal is scheduled to close April 1; MOHCD and committee members said the local program is designed to be a safety net for applicants not served by the state and for rent owed after April 1. The committee approved technical amendments discussed on the record and voted to forward items 7 and 8, as amended, to the full Board.

What happens next: The measures will go to the Board of Supervisors on April 5. MOHCD told the committee it will continue working with La Raza, the controller’s office and other providers to resolve outstanding certification questions and to monitor geographic distribution of assistance by provider.