Committee backs purchase of 42 Otis St. to add 24 youth permanent supportive housing units

The Homelessness and Behavioral Health Select Committee voted Sept. 22 to send to the full Board a resolution that would authorize the city's director of property to acquire 42 Otis Street for use as permanent supportive housing for young adults.

Emily Cohen, deputy director at the Department of Homelessness and Supportive Housing (HSH), told the committee the acquisition price would not exceed $14,240,000 plus roughly $40,000 in typical closing costs and that the purchase agreement includes a liquidated-damage clause of up to $420,000 in case of default. HSH said it applied in July for Homekey funds seeking up to $8.9 million and plans to use Proposition C funds to cover the remaining balance if the Homekey award is granted.

HSH described the building as 24 newly constructed units (built 2021) with private bathrooms, kitchenettes, on-site laundry, common space and accessible features; staff said the site would add capacity targeted to roughly 1,000 unhoused young adults the department estimates are unsheltered across the city. The Budget and Legislative Analyst (BLA) provided an appraisal-backed acquisition cost and noted additional tenant relocation fees ($1.2M), placing the total acquisition cost at about $645,000 per unit and describing it as relatively expensive compared with other HSH acquisitions.

Supervisors raised neighborhood-impact concerns, noting another larger PSH project nearby and asking whether staff track exit destinations for youth who leave PSH. HSH said it does track exit destinations generally and will follow up with youth-specific exit data; HSH also described outreach and Good Neighbor practices (tenant orientation, coordination with Public Works for street cleanliness and dog-waste supplies) to mitigate neighborhood impacts.

Public comment included support from Marnie Regan of Larkin Street Youth Services and a public commenter who described personal medical and identity-related grievances; HSH offered to connect that speaker with assistance.

The committee voted unanimously to forward the acquisition to the full Board with a positive recommendation (roll call: Mandelmann, Walton, Ronan). The matter will be considered by the full Board on Sept. 26.