Resolution authorizing the City and County of San Francisco (“City”), through the Department of Homelessness and Supportive Housing (“HSH”), to 1) execute a Standard Agreement with the California Department of Housing and Community Development (“HCD”) and co-applicants 835 Turk LLC and Five Keys Schools and Programs for a total award not to exceed $17,291,506 under the Homekey+ Program, including up to $3,561,599 disbursed by HCD as a grant to 835 Turk LLC for support of operating costs and up to $13,729,907 disbursed by HCD as a grant to the City for the rehabilitation and associated relocation costs for the real property located at 835 Turk Street for permanent supportive housing (the “Property”); 2) retroactively accept and expend anticipated revenue from the City’s portion of Homekey+ grant funds in an amount up to $13,729,907 to support the rehabilitation and associated relocation costs for the Property for costs incurred from March 5, 2024, through HCD’s capital grant expenditure deadline; 3) approving and authorizing the City to commit approximately $16,270,093 in required mat

This resolution authorizes the City and County of San Francisco (CCSF), through the Department of Homelessness and Supportive Housing (HSH), to execute a Standard Agreement with the California Department of Housing and Community Development (HCD) for $17,291,506 in Homekey+ grant funds. These funds, along with significant City matching funds, will support the rehabilitation and operation of 835 Turk Street as Permanent Supportive Housing (PSH) for formerly homeless adults with behavioral health challenges.

• Total Homekey+ Grant: $17,291,506 (Awarded October 13, 2025, Contract No. 25-HK+-18766).

  • $13,729,907 will be disbursed to the City for rehabilitation ($12,729,907) and tenant relocation costs ($1,000,000).
  • $3,561,599 will be disbursed directly to 835 Turk LLC (an affiliate of Five Keys Schools and Programs) for initial operating costs for 53 Homekey+ assisted units.

• City Matching Funds: The City commits approximately $16,270,093 in required matching funds for rehabilitation and a minimum of five years of operating subsidies. This includes funds from the Our City, Our Home Fund (Prop C) and 2020 Health & Recovery General Obligation Bond Funds. Additionally, the City has committed up to 15 years of operating subsidies through its Local Operating Subsidy Program (LOSP).

• Total Project Cost: The overall cost for acquisition and rehabilitation of the property is approximately $56.1 million, with a City subsidy of $400,012 per residential unit.

• Location: 835 Turk Street, San Francisco (Assessor Parcel Block No. 0761, Lot No. 016A).

• Units: The project will convert the existing 114-unit residential hotel into 106 permanent supportive housing units, including 6 fully ADA accessible units. Units will be furnished and include free high-speed internet.

• Rehabilitation Work: Includes critical structural improvements like seismic upgrades, ground floor remodeling to create supportive services offices and common spaces, window replacement, exterior repair, roof replacement, and life safety upgrades.

• Timeline: Expenditure of funds is retroactively approved for costs incurred from March 5, 2024. Construction is anticipated to begin on December 8, 2025, with completion by December 1, 2026. The property will be restricted as PSH for a 55-year term under a Ground Lease and Affordability Covenant.

• Services: Five Keys Schools and Programs, along with SFDPH's Permanent Housing Advanced Clinical Services Team (PHACS), will provide comprehensive on-site supportive services, including case management, mental and physical health care linkages, substance use services, and benefits counseling, adhering to Housing First principles.

• Relocation: Approximately 82 tenants will be permanently relocated to other PSH units within HSH’s portfolio, while 14 existing tenants will have the right to return to the property after rehabilitation and will receive financial assistance.

This project will significantly expand permanent supportive housing options in San Francisco, providing 106 renovated units for formerly homeless adults with behavioral health needs. Residents will benefit from critical seismic safety upgrades, accessible units, and comprehensive on-site supportive services, fostering stability and well-being. The City's substantial financial commitment, alongside state grants, ensures the long-term affordability and sustainability of this vital housing resource for 55 years.

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