The ordinance allows the City to lease a property at 835 Turk Street to Five Keys Schools and Programs for $1 per year to provide Permanent Supportive Housing for formerly homeless and low-income households, with a total cost not exceeding $16,682,000 over five years. It also exempts the property from certain contracting requirements while ensuring compliance with prevailing wage laws.
Ordinance 1) approving and authorizing the Director of Property and the Executive Director of the Department of Homelessness and Supportive Housing (“HSH”) to enter into a Lease and Property Management Agreement (“Agreement”) with Five Keys Schools and Programs to lease, operate, and maintain the real property and residential improvements at 835 Turk Street (“Property”) for an initial five-year term to commence upon the first day of the month following the effective date of this Ordinance with one five-year option to extend, and base rent of $1 per year with no annual rent increases, and for net property management and operating costs to be paid by the City in a total five-year amount not to exceed $16,682,000; 2) determining, in accordance with Administrative Code, Section 23.33, that the below market rent payable under the Agreement will serve a public purpose, by providing Permanent Supportive Housing for formerly homeless and low-income households; 3) adopting findings that the Property is “exempt surplus land” under the California Surplus Land Act; 4) exempting the Property from contracting requirements in Administrative Code, Chapter 6, but requiring compliance with the prevailing wage and apprenticeship requirements of Administrative Code, Section 23.61; 5) authorizing the Director of Property and the Executive Director of HSH to make certain modifications to the Agreement and take certain actions in furtherance of the Agreement and this Ordinance, as defined herein; 6) ratifying all prior actions taken by any City employee or official with respect to the Agreement; and 7) affirming the Planning Department’s determination under the California Environmental Quality Act, and adopting the Planning Department’s findings that the Agreement is consistent with the General Plan, and the eight priority policies of Planning Code, Section 101.1.
How it got here
This resolution allows San Francisco to enter into an agreement to receive over $17 million in funding for the rehabilitation of a property at 835 Turk Street to create permanent supportive housing for the homeless. It also commits the City to provide additional matching funds and operating subsidies for at least five years.
The resolution approves a 55-year ground lease for a property at 835 Turk Street to develop a 106-unit permanent supportive housing project for very low-income households, with a total rent of $1. It also authorizes a loan of up to $12.9 million and a grant of up to $13.7 million to finance the project, aiming to provide affordable housing and meet public needs.