Committee approves extensions for shelter‑in‑place hotel contracts; FEMA reimbursement timeline is a concern

The committee considered two related items to support ongoing Shelter‑in‑Place (SIP) hotel operations. The first (Item 5) extends and increases a grant agreement with 5 Keys to provide on‑site services at the Hotel Whitcomb SIP site by roughly $10.5M to a total not‑to‑exceed of about $20.2M. The second (Item 6) is a fourth amendment to a booking agreement with the owner of 1231 Market Street (Hotel Whitcomb) to continue use of 459 rooms and associated services, increasing the amount by about $19.2M for a total NTE of roughly $54.8M and extending the booking period to 03/01/2022.

HSH and HSA presenters described the services 5 Keys provides: intake and wellness checks, health screenings, care coordination, assistance with benefits and re‑housing navigation, laundry and meal services, and collaboration with DPH for medical support. The BLA recommended a technical amendment to align termination dates for the service agreement to the hotel booking contract and corrected the budget figures; the committee adopted the amendments and moved both items to the Board with recommendations.

Supervisors pressed for details about staffing levels, caseloads and how the city will cover program costs after FEMA public‑assistance reimbursement is expected to end on September 30. HSH said FEMA reimbursement will cover much of the cost through Sept. 30 and staff are pulling together other sources (Emergency Solutions Grant, CDBG, state grants and Proposition C) to fund the wind‑down; HSH reported program averages and metrics including serving more than 3,600 guests to date, rehousing about 400, and reporting about 1,900–2,200 guests currently residing in SIP hotels across ~1,900 rooms. BLA showed an average cost per night at one contract tabulation of $173 and HSH provided a programwide figure of about $261 per night and roughly $19M per month for the program at current scale.

Why it matters: SIP hotels have sheltered thousands during the pandemic and are now costly; the city must manage tapering operations, rehousing commitments, and the end of FEMA reimbursements while avoiding returns to unsheltered conditions.

What’s next: The Board will consider the amended agreements. HSH and HSA will provide follow‑up information to supervisors on staffing ratios and the budget plan for post‑FEMA funding.