Supervisors press HSH on high vacancies at Tenderloin supportive-housing portfolio

The Homelessness and Behavioral Health Select Committee on June 2 confronted persistent vacancies at three hotel-based permanent supportive housing properties operated by Tenderloin Housing Clinic and voted to forward a contract amendment to the full Board while seeking additional oversight.

The proposed amendment would extend THC’s grant agreement for three years to June 30, 2026, and increase the not-to-exceed amount by roughly $24 million to about $34.3 million for operations and service enhancements at the Crown, Winton and National Hotels (236 units). The Budget and Legislative Analyst (BLA) recommended a one-year extension rather than three, citing monitoring findings that showed gaps between required outcomes and documentation, a recently repaired elevator and other administrative deficiencies.

Deputy Director Emily Cohen of the Department of Homelessness and Supportive Housing said HSH is not in agreement with the BLA’s recommendation for a shorter term but outlined corrective steps: 90-day targets to close monitoring findings, policy changes to lower documentation barriers for placements, investments in property management and janitorial staff to speed unit turnover, and a housing-placement team to batch referrals to providers.

Supervisors pressed for data. HSH said system-wide vacancy for locally funded permanent supportive housing is about 9.5% (roughly 1,000 vacancies across 10,000 units), while THC’s portfolio—excluding units offline for post-fire repairs—has an 8.6% vacancy rate. HSH said about a third of vacancies are ready for move-in, a third have transfers or placements pending and a third are offline for long-term repairs; recent capital dollars aim to address offline units.

Supervisors expressed concern that vacancy rates at the three properties exceed system averages and discussed options including a one- or two-year extension with quarterly reporting. Supervisor Shimon Walton suggested a two-year compromise to balance provider stability and oversight; Supervisor Mandelmann and Chair Ronan supported regular updates and additional hearings focused on vacancies. HSH agreed to provide quarterly reporting and to work with the committee and its commission on monitoring outcomes.

The committee voted to forward the amendment to the full Board as a committee report, with supervisors recording “aye” votes on the roll call. The motion was procedural; the committee did not unilaterally change the contract term. BLA recommended continued oversight and, if improvements are not demonstrated, additional actions up to reprocurement or alternative service models.