The Hotel Diva in the Tenderloin will be purchased for permanent supportive housing in San Francisco using state Project Homekey funds. (Kevin N. Hume/S.F. Examiner)

The Hotel Diva in the Tenderloin will be purchased for permanent supportive housing in San Francisco using state Project Homekey funds. (Kevin N. Hume/S.F. Examiner)

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

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

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

The City was previously awaded $45 million in Project Homekey funding for the purchase of the 232-room Granada Hotel.

Mayor London Breed celebrated the news in a statement.

“By expanding access to housing and other support, we can create real opportunities for people to get off the streets and create a path for them to live a fuller, healthier life,” Breed said. “We pursued additional Homekey State funding to ensure that the thousands of people who have been in our emergency housing during this public health crisis exit into stable housing placements.”

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

“Ultimately, the best way to address homelessness after a Navigation Center is established is to create housing to navigate residents to,” Peskin said in a statement. “The Hotel Diva is a perfect opportunity for yet more permanently affordable housing.”

Both sites were applied for in 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 action to acquire new units of Permanent Supportive Housing, a proven solution to ending chronic homelessness,” Beth Stokes, executive director of Episcopal Community Services, said in a statement. “ECS’ acquisition of the Diva, in conjunction with the Granada, will add 362 units of Permanent Supportive Housing to the City’s homeless response system.”

The Granada Hotel, at 1000 Sutter St., has 80 units occupied by seniors. The remaining 252 units will be filled by formerly homeless residents who were moved into hotels due to the COVID-19 pandemic on a temporary basis. The Department of Homelessness and Supportive Housing moves homeless people into supportive housing units using a so-called Coordinated Entry System.

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

The $45 million Homekey Program grant includes $39 million to buy the site and $5.5 million for two years of operating subsides. But the total cost to acquire and rehabilitate the site is $59.8 million. The City is covering the difference with loan through the Mayor’s Office of Housing.

Project Homekey was launched in response to COVID-19 to purchase and rehab hotels, motels and vacant apartment buildings for homelesss to 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.

jsabatini@sfexaminer.com

Bay Area NewsHousing and HomelessnessSan Franciscosan francisco news

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Police Chief Bill Scott on Wednesday said a rebranding and reoganization of the former Gang Task Force amounts to “more than just the name change.” (Kevin N. Hume/S.F. Examiner)
Faced with surge in shootings, Chief Scott reenvisions SFPD’s Gang Task Force

New Community Violence Reduction Team adds officers with community-policing experience

Stores including Walgreens and Safeway are required to pay their employees additional hazard pay under a city ordinance that is currently set to expire later this month. (Shutterstock)
Grocery workers could gain additional weeks of $5 per hour hazard pay

San Francisco will vote next week on whether to extend a law… Continue reading

The fatal shooting of San Francisco resident Roger Allen by Daly City police on April 7 prompted protests in both cities. (Jordi Molina/ Special to the S.F. Examiner)
Daly City approves body-worn and vehicle cameras for police after fatal shooting

Daly City officials on Wednesday approved body and vehicle cameras for police… Continue reading

Baseball Hall of Famer Willie Mays attends an event to honor the San Francisco Giants' 2014 World Series victory on Thursday, June 4, 2015, in Washington, D.C. (Olivier Douliery/Abaca Press/TNS)
Willie Mays turns 90: San Francisco celebrates the greatest Giant

By Al Saracevic Examiner staff writer I couldn’t believe it. Willie Mays… Continue reading

Ja’Mari Oliver, center, 11, a fifth grader at Harvey Milk Civil Rights Academy, is surrounded by his classmates at a protest outside the Safeway at Church and Market streets on Wednesday, May 5, 2021 in support of him following an April 26 incident where he was falsely accused by an employee of stealing. (Kevin N. Hume/S.F. Examiner)
School community rallies behind Black classmate stopped at Safeway

‘When you mess with one of us, you mess with all of us’

Most Read