Committee continues debate on proposed 250-bed shelter at 711 Post Street after wide neighborhood pushback

The committee opened a lengthy discussion on Item 9, a proposed grant agreement between the Department of Homelessness and Supportive Housing (HSH) and Urban Alchemy to operate a semi-congregate shelter at 711 Post Street serving approximately 250 adults. The proposed contract term is Feb. 1, 2022 through June 30, 2024 with a not-to-exceed amount of about $18.7 million.

Supervisor Aaron Peskin, whose district includes the proposed site, criticized the community-engagement process as "box checking" and requested a 30-day pause to convene a working group with neighbors, businesses and labor representatives. Emily Cohen, HSH deputy director, described the site's configuration (123 rooms, singles to quads; some private bathrooms) and emphasized the shelter's role as a non-congregate, low-barrier alternative to keep people off the street; she said HSH has held multiple meetings and outreach activities and is committed to continued engagement.

The Budget and Legislative Analyst noted a high contingency in the proposal (about 23%) and that the grant assumes 250 beds but contingency allows up to 318 occupants in later years; BLA said out-year costs have not yet been allocated. Supervisors debated urgency to add capacity amid a COVID surge and a Tenderloin emergency order versus neighborhood concerns about saturation: multiple nearby shelters and hotel conversions have concentrated shelter beds in a small area, prompting numerous residents, businesses and unions to call for a pause and better outreach.

Public comment ran extensively and split sharply. Supporters urged rapid action to house people in cold and rainy weather; opponents, including many Lower Nob Hill residents, hotel managers and business groups, said the neighborhood has been asked to absorb a disproportionate share of shelter capacity and complained of inadequate notice and engagement. HSH said it would work with Supervisor Peskin and the community and noted the operator (Urban Alchemy) has a track record with SIP hotels and supportive programs.

Supervisor Peskin asked the committee to continue the item for one month to allow a focused working-group process; several supervisors supported a short continuance tailored to produce meaningful dialogue. The committee voted to continue the item to the Feb. 2 Budget and Finance meeting (roll call: 3 ayes). The continuance includes direction to convene stakeholders and to explore purchasing the building or other multi-use options.