News Releases
The latest news and announcements from Mayor London N. Breed

City Awarded $54.7 Million in Project Homekey Funding to Acquire Building For Homeless Housing

State grant will fund the recently approved purchase of 1321 Mission Street for Permanent Supportive Housing, advancing the next phase of Mayor Breed’s Homelessness Recovery Plan

San Francisco, CA — Today, the California Department of Housing and Community Development announced that San Francisco was awarded $54.7 million in capital and operating costs from the State’s Project Homekey to purchase a 160-room residential building at 1321 Mission Street to operate as Permanent Supportive Housing (PSH). Today’s award is in addition to the $76.89 million that San Francisco was awarded in 2020 Homekey funds to purchase and operate Hotel Diva and the Granada Hotel.

The acquisition of this hotel is part of Mayor Breed’s historic Homelessness Recovery Plan, which includes the largest one-time expansion of PSH in 20 years.

“As we continue to push forward with our Homelessness Recovery Plan, we must take advantage of every opportunity and resource we have to ensure that all people receive the housing and support they need,” said Mayor London Breed. “I want to thank Governor Newsom for continuing to advance Project Homekey and for pushing for policies to support our homeless residents during one of the most challenging times in our state’s history.” 

Today’s announcement applies to the next round of $113 million in Homekey funding for five projects statewide. Homekey, backed by $1.3 billion in newly available and eligible funding through the State budget, will allow for the largest expansion of housing for people experiencing homelessness in recent history while addressing the continuing health and social service needs of homeless residents, which have been exacerbated by the COVID-19 pandemic.

Acquisitions of hotels to house formerly homeless residents is a key part of the Mayor’s plans to expand permanent supportive housing in San Francisco. The City has already brought online over 360 units of PSH through the 2020 Homekey Grant Program at Hotel Diva and the Granada Hotel, and this Fall, the Board of Supervisors and Mayor authorized the Department of Homelessness and Supportive Housing (HSH) to acquire and convert three more existing properties into supportive housing in Districts 11, 9, and 6, which will add an additional 237 units. The City continues to explore more options for purchasing sites.

“The Mayor and Governor believe that housing is the solution to homelessness,” said Shireen McSpadden, Executive Director of the Department of Homelessness and Supportive Housing. “It is critical that we provide more housing, shelter, prevention and diversion for those experiencing homeless in our community.”

“We have a unique opportunity right now to direct both state and local resources to tackle one of our most pervasive issues: homelessness. This $54 million in Homekey funding is a huge win for our city. We need to urgently deliver on increasing permanent supportive housing stock in San Francisco and transitioning people off the streets and into housing,” said District 6 Supervisor Matt Haney.

As part of Mayor Breed's bold Homelessness Recovery Plan, the City has committed to acquiring or leasing 1,500 new units of PSH and expanding shelter options for people living outdoors. In total, the City will make 6,000 placements in housing and shelter available for people experiencing homelessness, including 4,500 placements in PSH.