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Tenants at the 232-unit Granada Hotel at Sutter and Hyde streets raised concerns about displacement after it was bought last…

San Francisco is moving to turn a Lower Nob Hill hotel into permanent supportive housing using a rare state grant that could yield up to $45 million.

Supervisor Aaron Peskin introduced a resolution on Tuesday to authorize the Department of Homelessness and Supportive Housing to execute an agreement to buy the Granada Hotel for supportive housing. The grant would come from California’s $600 million HomeKey program to buy and rehab housing.

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