Committee forwards amended plan to buy 1174 Folsom for 42-unit supportive housing after neighbors press safety concerns

The San Francisco Homelessness and Behavioral Health Select Committee on July 14 voted to forward an amended resolution authorizing the Department of Homelessness and Supportive Housing (HSH) to acquire 1174–1178 Folsom Street and 663 Clementina Street for use as 42 units of permanent supportive housing for transitional‑age youth.

Supervisor Matt Dorsey, who represents the neighborhood, said he supports the acquisition but urged tighter safeguards after hearing residents’ safety concerns. "I think many concerns are rooted in what we are seeing right now with brazen drug markets and open‑air drug scenes," Dorsey said, and he read amendments that add commitments for a community advisory group, regular reporting on program outcomes and development of an enforceable good‑neighbor policy.

Deputy Director Emily Cohen of the Department of Homelessness and Supportive Housing told the committee the purchase price would not exceed $27.2 million and that HSH has submitted a Homekey application for roughly $14.7 million to offset acquisition costs; the remainder would be funded with local Prop C youth acquisition dollars. Cohen said the building, constructed in 2021, has 42 units with private bathrooms, on‑site laundry and community space, and that 34 units are currently occupied. "We are very committed to continuing to work closely with your office and with the community to ensure that this project can be the best neighbor possible in the community," Cohen said.

Nick Menard from the Budget and Legislative Analyst reported the purchase price at $27,150,000, $75,000 in closing costs and an estimated $1.8 million to relocate current tenants. He said annual property management and support services are estimated at about $1.36 million.

Neighbors and business owners voiced strong opposition during a lengthy public‑comment period, citing visible street drug activity near Eighth and Market, repeated overdoses, difficulty maneuvering strollers on sidewalks and the concentration of existing HSH sites on the same blocks. "I walk the neighborhood... I think this is a big mistake putting endangered youth right in the center of this vortex," said Whitney Davis, a long‑time resident. Business owners said the area’s zoning, nightlife and foot traffic make it a poor fit for some TAY recovery models.

Providers and advocates urged the committee to approve the acquisition. Marnie Regan of Larkin Street Youth Services and Karen Adams of Homeless Youth Alliance described supportive housing as a staffed, transitional step for youth who have completed prior supports and argued that housing reduces mortality and improves outcomes. Charles Defarge of Episcopal Community Services offered to host site tours for neighbors and said, "With appropriate staffing, community engagement and a strong good neighbor policy, this site can and will be a positive presence in the neighborhood."

Cohen said HSH will create an ongoing working group that includes the provider, neighbors and relevant city departments and will hold providers to the good‑neighbor policy. After discussion the committee accepted Dorsey’s amendments and voted unanimously to forward the amended resolution to the full Board with a positive recommendation; the item is scheduled for Board consideration on July 18.

What happens next: If the Board approves the acquisition the city will complete tenant relocation, finalize the Homekey award (if granted), and run an RFP to select an operator; Dorsey said he will withhold cosponsorship of the final contract vote until he reviews the service provider agreement.