State grant will fund the recently approved purchase of 3061 16th Street for Permanent Supportive Housing, further advancing Mayor Breed’s Homelessness Recovery Plan

San Francisco, CA — Last week, the California Department of Housing and Community Development announced that San Francisco was awarded $7.5 million in capital and operating costs from the State’s Project Homekey to purchase the 25-room Eula Hotel at 3061 16th Street to operate as Permanent Supportive Housing (PSH) for transitional age youth (TAY). The site will be operated by Dolores Street Community Services with Larkin Street Youth Services providing onsite youth services for tenants.

This most recent Homekey award is in addition to the $76.9 million that San Francisco was awarded in 2020 for the Diva and Granada Hotels and the $54.7 million that the City was awarded in 2021 for the purchase of 1321 Mission Street.

The acquisition of this hotel is part of Mayor Breed’s Homelessness Recovery Plan, which includes the largest one-time expansion of PSH in 20 years. Currently, there are 1,490 active units, and an additional 1,054 units are in the pipeline putting the plan at 99% towards Mayor Breed’s commitment to acquiring or leasing 1,500 new units of PSH.

“We know that expanding Permanent Supportive Housing will lead to real opportunities for people experiencing homelessness in our city to live a fuller, healthier life,” said Mayor Breed. “Although we have made historic progress on our Homelessness Recovery Plan, there is still so much work that needs to be done, and we must take advantage of every opportunity provided by the State to ensure that all people receive the support they need. I want to thank Governor Newsom for his continued efforts to push Project Homekey forward and his leadership in supporting our homeless residents during this unprecedented time.”

Project Homekey, backed by $1.3 billion in newly available and eligible funding through the State budget, will allow for the largest expansion of housing for people experiencing homelessness in recent history while addressing the continuing health and social service needs of homeless residents, which have been exacerbated by the COVID-19 pandemic.

“We are grateful to the Mayor and Governor for their commitment to expand housing as the solution to homelessness,” said Shireen McSpadden, Executive Director of the Department of Homelessness and Supportive Housing. “State funds are a key component in growing our permanent supportive housing portfolio and advancing our mission to make homelessness in San Francisco rare, brief and one-time.”

As part of Mayor Breed’s Homelessness Recovery Plan the City will make 6,000 placements in housing and shelter available for people experiencing homelessness, including 4,500 placements in PSH. Progress on Mayor Breed’s Homelessness Recovery Plan can be found here: sf.gov/data/homelessness-recovery-plan.

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