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SF to purchase second hotel site to house homeless under state’s Project Homekey program | Archives

San Francisco received additional funding on Friday to purchase a second hotel site under the state’s Project Homekey program and turn it into permanent, supportive housing for the homeless.

Governor Gavin Newsom announced the latest award of $81.44 million in funds for five candidates during a visit to San Jose. San Francisco’s share is $29.1 million for the purchase of Hotel Diva, a 130-room hotel near Union Square at 440 Geary St.

The city had previously received $45 million in Project Homekey funding for the purchase of the 232-room Hotel Granada.

The Mayor of London Breed celebrated the news in a statement.

“By expanding access to housing and other supports, we can create real opportunities for people to get off the streets and pave the way for them to live fuller, healthier lives,” Breed said. “We have sought additional state funding from Homekey to ensure that the thousands of people who were in our emergency housing during this public health crisis move out into stable housing.”

Both hotels are in District 3, represented by Supervisor Aaron Peskin.

“Ultimately, the best way to address homelessness after the creation of a navigation center is to create housing to direct residents,” Peskin said in a statement. “Hotel Diva is a perfect opportunity for even more sustainably affordable accommodation.”

Both sites were requested through a partnership between the city and the nonprofit Episcopal Community Services, which will use the funding to acquire sites.

“Now is the time to take bold steps to acquire new permanent supportive housing units, a proven solution to ending chronic homelessness,” said Beth Stokes, executive director of Episcopal Community Services, in a statement. “The acquisition of the Diva by ECS, in conjunction with the Granada, will add 362 permanent housing units with support services to the city’s homelessness response system. »

The Granada Hotel at 1000 Sutter Street has 80 units occupied by seniors. The remaining 252 units will be occupied by former homeless residents who have been temporarily relocated to hotels due to the COVID-19 pandemic. The Department of Homelessness and Supportive Housing moves homeless people into supportive housing using a coordinated entry system.

The City is also providing funds to help with the purchase of the Granada site, according to a budget analyst report.

The Homekey program’s $45 million grant includes $39 million to purchase the site and $5.5 million for two years of operating grants. But the total cost of acquiring and rehabilitating the site is $59.8 million. The City covers the difference with a loan through the Mayor’s Housing Office.

The Homekey Project was launched in response to COVID-19 to purchase and rehabilitate vacant hotels, motels and apartment buildings into which homeless people can move into. The program is administered by the California Department of Housing and Community Development.

To date, more than $709 million has been awarded to 45 applicants for 78 projects totaling 5,068 units, according to the governor’s office. The average cost per unit is $139,000.

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