The resolution approves the acquisition of a property at 3055-3061 16th Street for $5.715 million to support homeless housing initiatives and authorizes the Department of Homelessness and Supportive Housing to apply for state funding to assist with the purchase. It also confirms that the project complies with environmental regulations and city planning policies.
Resolution 1) approving and authorizing the Director of Property, on behalf of the Department of Homelessness and Supportive Housing (“HSH”), to acquire certain property located at 3055-3061 16th Street (“Property”); 2) approving and authorizing HSH, on behalf of the City, to apply to the California Department of Housing and Community Development (“HCD”) for its 2021 Homekey Grant Program (“Project Homekey”) to purchase the Property; 3) approving and authorizing an Agreement of Purchase and Sale for Real Estate for the acquisition of the Property, for $5,600,000 plus an estimated $115,000 for typical closing costs for a total amount of $5,715,000 from Mahadeva, LLC (“Purchase Agreement”); 4) authorizing the Director of Property to execute the Purchase Agreement, make certain modifications, and take certain actions in furtherance of this Resolution and the Purchase Agreement, as defined herein; 5) affirming the Planning Department’s determination under the California Environmental Quality Act; and 6) adopting the Planning Department’s findings that the Purchase Agreement, and the transaction contemplated therein, is consistent with the General Plan, and the eight priority policies of Planning Code, Section 101.1.
How it got here
The legislation originated from the City of San Francisco's initiative to acquire the Eula Hotel for permanent supportive housing as part of a broader strategy to combat homelessness.
HSH issued a Request for Information to identify suitable properties for acquisition as permanent supportive housing sites, receiving 85 responses.
The Planning Department found that the proposed acquisition of the Eula Hotel is consistent with the General Plan and not defined as a project under CEQA.
The Real Estate Division submitted a letter to the Board recommending the purchase of the Eula Hotel for $5,600,000 to convert it into permanent supportive housing.
The Budget and Finance Committee heard the agenda items related to the acquisition of the Eula Hotel, receiving public support for the initiative.
The Board of Supervisors passed the resolution approving the acquisition of the Eula Hotel for $5,715,000, including closing costs.
The Mayor approved the resolution authorizing the acquisition of the property.
Reconstructed from attached documents & the official record
The resolution allows the Department of Homelessness and Supportive Housing to use up to $7.48 million in state grant funds to acquire a property at 3055-3061 16th Street for Permanent Supportive Housing aimed at Transitional Aged Youth, with operations supported through June 2026. It also commits approximately $1.6 million in matching funds for capital costs and ensures compliance with planning regulations.
The ordinance allows the City to lease a property at 3055-3061 16th Street to Dolores Street Community Services for $1 per year to provide Permanent Supportive Housing for formerly homeless and low-income households. It also exempts the property from certain contracting requirements while ensuring compliance with prevailing wage laws.
