Ordinance amending the Administrative Code to state that it is City policy to expand the availability of Site-Based Permanent Supportive Housing (“PSH”) that prohibits on-site illicit drug use among residents (“Drug-Free PSH”) to meet the demand of people experiencing homelessness who prefer such a residential option; bar the City from funding new Site-Based PSH for people experiencing homelessness that prohibits evictions on the basis of drug use alone (“Drug-Tolerant PSH”), except where operation of the housing as Drug-Free PSH would conflict with standards imposed by law or by a condition of other funding, or the Board of Supervisors has waived the funding prohibition based on specific findings; and require the Department of Homelessness and Supportive Housing (“HSH”) to survey residents of Site-Based PSH to assess their interest in living in either Drug-Tolerant PSH or Drug-Free PSH and report on the survey findings and HSH’s strategies to meet PSH residents’ demands.

This ordinance amends the Administrative Code to establish a policy prioritizing the expansion of "Drug-Free Permanent Supportive Housing" (PSH) which prohibits on-site illicit drug use and grounds for eviction. It also bars the City from funding new "Drug-Tolerant PSH" (where drug use alone is not grounds for eviction) unless legally required or waived by the Board of Supervisors under specific findings. The Department of Homelessness and Supportive Housing (HSH) is mandated to survey current PSH residents within six months to gauge interest in both housing models and report on strategies to meet identified demands.

Key Provisions:

• Policy Shift: Establishes City policy to expand "Drug-Free PSH" to meet demand from those preferring this option.
• Funding Restriction: Prohibits City funding for new "Drug-Tolerant PSH" unless:
  • Operation as "Drug-Free PSH" conflicts with law or funding conditions.
  • The Board of Supervisors waives the prohibition based on survey demand, public interest, a recommendation from HSH or MOHCD, and a commitment to a "Good Neighbor Agreement."
• Resident Survey: HSH must survey PSH residents within six months to assess interest in "Drug-Free PSH" vs. "Drug-Tolerant PSH."
• Reporting: HSH must report survey findings and strategies to meet demand within three months of survey completion.
• Rules and Regulations: HSH, in consultation with the Department of Public Health, will develop rules for "Drug-Free PSH" operators, including standards for prohibiting illicit drug use, offering relapse support (not automatic eviction for a single instance), and addressing disruptive behavior. HSH must also commit to best efforts in providing alternative housing for residents at risk of eviction from "Drug-Free PSH."

Justification: The ordinance cites data indicating that 26% of overdose deaths occurred in PSH between June 2024 and July 2025, and that some PSH facilities generate a high volume of police calls (e.g., 654 calls in one year for a single facility). It also notes that 53% of single adults and 28% of families in HSH housing programs have substance use or mental health disorders, suggesting a need for varied housing options.