Hearing to receive information on options for shelter services and operations at 711 Post Street, and Urban Alchemy’s progress towards compliance with the City’s fiscal monitoring and contract monitoring requirements; and requesting the Department of Homelessness and Supporting Housing to report.

This item concerns the 711 Post Street shelter, a facility providing up to 280 semi-congregate beds for adults experiencing homelessness, representing approximately 10% of the city's adult shelter capacity. The hearing aims to gather information on operational options for the shelter and assess Urban Alchemy's compliance with city fiscal and contract monitoring requirements.

Urban Alchemy's Compliance:

• Fiscal Monitoring: Urban Alchemy was placed on Tier 2 status in August 2025 due to timesheet practices but has since implemented revised policies and procedures, leading to their removal from Tier 2 status as of the December 2025 report.
• Contract Monitoring: In June 2025, Urban Alchemy received a corrective action letter for projecting increased staffing costs beyond the grant budget. They responded with documentation and actions that satisfied all concerns by October 2025, leading HSH to deem them in full compliance as of November 2025.

Shelter Operations and Future:

• The 711 Post shelter has provided services to 763 unique adult clients in FY 2024-25, offering access to addiction treatment, behavioral health services, and other support.
• The city is considering a closure scenario for 711 Post, which would require 9-12 months to wind down responsibly and could lead to a significant increase in unsheltered homelessness due to limited comparable shelter capacity.
• This potential closure follows the February 2026 closure of two other shelters (Adante and Monarch), totaling 195 non-congregate units, in the Tenderloin/Lower Nob Hill neighborhood.
• Proposed Improvements: HSH is negotiating a new 12-month contract (April 1, 2026 - March 31, 2027) with a new provider, with plans for reprocurement through a Multi-Year Procurement Plan (MYPP) to standardize service and outcome objectives.
• Additional proposed improvements include a 24/7 public text line for addressing site issues and updates to the "Good Neighbor Policy" to include locked trash cans and dog waste stations.
• Community Ambassadors will continue to be funded to support cleaning, engagement, and safety on the 700 block of Post Street.

Residents may see changes in shelter services at 711 Post Street, including a potential provider change and updated operational policies. The city is also evaluating closure scenarios, which could impact the number of available shelter beds and potentially increase unsheltered homelessness in the area.

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