Resolution approving the third amendment to the grant agreement between Episcopal Community Services and the Department of Homelessness and Supportive Housing (“HSH”) for shelter services at Sanctuary Shelter; extending the grant term by 24 months from June 30, 2026, for a total term of July 1, 2021, through June 30, 2028; increasing the agreement amount by $15,140,870 for a new total amount not to exceed $40,896,141; and authorizing HSH to enter into any amendments or other modifications to the Amendment that do not materially increase the obligations or liabilities, or materially decrease the benefits to the City and are necessary or advisable to effectuate the purposes of the Agreement.

The City and County of San Francisco is approving the third amendment to a grant agreement with Episcopal Community Services (ECS) for shelter services at Sanctuary Shelter, located at 201 8th Street. This amendment extends the grant term by 24 months, from June 30, 2026, to June 30, 2028, making the total term July 1, 2021, through June 30, 2028. The agreement amount is increased by $15,140,870, bringing the new total to $40,896,141.

Sanctuary Shelter provides 24/7 emergency shelter and support services for up to 200 adult guests nightly. Services include facility maintenance, two meals per day, laundry, pet accommodation, secure storage, and monitoring. Support services encompass intake, housing-focused case management, benefits navigation (e.g., Medi-Cal, CalFresh, CAAP), wellness checks, and referrals to medical and employment services. The program operates on a harm reduction and Housing First model, with a proposed staffing of 38.70 Full-Time Equivalent (FTE) positions for FY 2025-26.

The annual budget for the extended term (FY 2025-26 through FY 2027-28) is approximately $6,445,683 per year, equating to about $32,229 per bed annually. Funding is primarily from the General Fund (95%) and the federal Emergency Solutions Grant Program (5%). A contingency amount of $1,974,896 is included in the total not-to-exceed amount.

In Fiscal Year 2024-25, ECS met eight out of eleven service and outcome objectives, including a 95% occupancy rate and 81% client satisfaction. However, objectives for client attendance at community meetings (27% vs. 60% goal), referrals for problem-solving/Coordinated Entry (19% vs. 100% goal), and document readiness/upload to the ONE System (5% vs. 80% goal) were not met. ECS has implemented staff training and adjusted protocols to address these shortfalls, and the community meeting attendance objective is proposed for removal in the new amendment.

This amendment ensures continued operation of Sanctuary Shelter at 201 8th Street, providing 200 emergency shelter beds for adults experiencing homelessness through June 2028. Residents in need will continue to receive critical services like daily meals, case management, and assistance with securing permanent housing and benefits. The city's commitment helps maintain vital support for vulnerable populations, though improvements are needed in connecting individuals to long-term housing documentation and coordinated entry services.

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