The resolution approves a lease agreement allowing Five Keys Schools and Programs to use city-owned property at 42 Otis Street for permanent supportive housing for formerly homeless and low-income households, with a nominal rent of $1 for an initial five-year term and up to 10 automatic five-year extensions. It also confirms that the property is considered "exempt surplus land" and aligns with city planning and environmental regulations.
Resolution 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 Ground Lease with Five Keys Schools and Programs for the real property owned by the City, located at 42 Otis Street (the “Property”), for an initial lease term of five years with 10 automatic extensions of the lease term for an additional period of five years each and a total rent not to exceed $1 in order to operate the Property as permanent supportive housing; 2) determining in accordance with Administrative Code, Section 23.33 that the below market rent payable under the Ground Lease will serve a public purpose by providing permanent supportive housing for formerly homeless and low-income households; 3) adopting findings declaring that the Property is "exempt surplus land" under the California Surplus Land Act; 4) affirming the Planning Department's determination under the California Environmental Quality Act, and adopting the Planning Department's findings of consistency with the General Plan, and the eight priority policies of the Planning Code, Section 101.1; and 5) authorizing the Director of Property and/or the HSH Executive Director to execute and make certain modifications to the Ground Lease, as defined herein, and take certain actions in furtherance of this Resolution, as defined herein.
How it got here
The legislation originated from the need to provide permanent supportive housing for formerly homeless young adults in San Francisco, following a series of strategic plans and resolutions aimed at addressing homelessness.
The Board declared a shelter crisis and committed to combatting homelessness, which set the stage for future housing initiatives.
HSH released 'Home by the Bay,' a plan calling for 3,025 new units of permanent supportive housing to address homelessness.
The Board adopted Resolution No. 443-23, approving the acquisition of the property at 42 Otis Street for supportive housing.
The City completed the acquisition of the property at 42 Otis Street, which includes 24 residential units.
HSH issued RFQ #144 to select a provider for property management and support services at the 42 Otis Street site.
HSH selected Five Keys Schools and Programs to operate the property as permanent supportive housing for young adults.
The Budget and Finance Committee recommended the resolution to approve the Ground Lease with Five Keys Schools and Programs.
The Board adopted the resolution approving the Ground Lease for the property at 42 Otis Street to operate as permanent supportive housing.
Reconstructed from attached documents & the official record
The resolution authorizes the acquisition of a property at 42 Otis Street for $14.24 million to support homelessness services, including a purchase agreement with a potential penalty for default. It also affirms compliance with environmental regulations and alignment with city planning policies.
This resolution allows the Department of Homelessness and Supportive Housing to seek a grant of up to $9,409,600 from the state for a property at 42 Otis Street. The funding is intended to support housing initiatives for the homeless in San Francisco.
