San Francisco Budget Committee Hearing on HSH and MOHCD Budgets – March 3, 2021
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San Francisco Budget and Appropriations Committee Hearing on HSH and MOHCD Budgets – March 3, 2021
The Budget and Appropriations Committee, chaired by Supervisor Matt Haney, held a hearing on March 3, 2021, to review the proposed budgets for the Department of Homelessness and Supportive Housing (HSH) and the Mayor’s Office of Housing and Community Development (MOHCD) for fiscal years 2021‑2022 and 2022‑2023. The committee heard presentations from department directors, discussed funding priorities and gaps, and received extensive public comment—particularly on the need to fully fund the “30% rent standard” for supportive housing tenants. Both hearings were filed by unanimous votes.
Public Comments & Testimony
- On HSH budget (Item 1): Eleven callers provided public comment, with the overwhelming majority urging the committee to fully fund the 30% rent standard (30 Right Now) this fiscal year. Speakers described the policy as a basic fairness issue and noted that over 2,000 supportive housing tenants still pay up to 50% of their income in rent. Several callers criticized the department for not prioritizing this funding and called on the mayor and board to allocate the estimated $6.1 million needed annually.
- On MOHCD budget (Item 2): One caller, Deanna Fotos from Dolores Street Community Services, warned against cutting grants to community‑based organizations (CBOs) and emphasized that many CBOs provide essential outreach and tenant rights services that have pivoted during the pandemic.
Discussion Items
Item 1: Hearing on HSH Budget (FY21‑22 and FY22‑23)
- Interim Director Abigail Stewart Kahn presented the department’s budget of $578.5 million for FY21‑22 (a $273.6 million increase from the prior year, largely due to one‑time COVID‑19 response funds). The budget maintains current services and includes $4 million for safe sleeping sites but only $1 million for safe parking, with a $3.5 million gap to operate a new safe parking site. Director Kahn stated that additional Prop C dollars have not yet been allocated in this proposal and will be determined through future conversations with the R City Our Homes committee.
- Committee members—Supervisors Safai, Walton, Marr, and Ronan—raised concerns about the lack of funding for safe parking, the high cost of safe sleeping ($16.1 million for 262 slots), and the need to prioritize permanent supportive housing acquisitions. Director Kahn noted that the department is committed to expanding safe parking but requires additional resources to reduce other services. She also highlighted progress on racial equity, including hiring a Chief Equity Officer and publishing a racial equity action plan.
- The committee questioned the $6 million gap to implement the 30% rent standard legislation. Director Kahn acknowledged the policy priority but said it would require trade‑offs.
- Hard stop at 2:30 PM: The HSH team left promptly for a scheduled internal diversity, equity, and inclusion workshop, prompting Chair Haney to express frustration that the department did not remain for the full hearing. The committee proceeded to public comment and then voted to file the hearing.
Item 2: Hearing on MOHCD Budget (FY21‑22 and FY22‑23)
- Director Eric Shaw and Deputy Director Benjamin McCloskey presented MOHCD’s proposed budget of ~$126 million for FY21‑22 (a $71 million decrease from the current year, mainly due to one‑time revenues expiring). The budget includes $3.7 million in general fund reductions, which would likely be applied as a 10% cut to CBO grants. McCloskey explained that only unrestricted general fund dollars—almost exclusively used for CBO contracts—can be cut to meet the mayor’s budget instructions.
- Committee members discussed the geographic distribution of community grants, small sites acquisitions (approximately $120 million in available funds, with new guidelines expected in summer 2021), the down payment assistance program, and federal rental assistance. Director Shaw noted that $26 million in direct federal rental aid and an additional $28 million through a state block grant are anticipated, but guidance on usage is still pending.
- Multiple supervisors emphasized the need to protect black‑led and black‑serving organizations from cuts and requested detailed data on BMR homeownership by ethnicity and geographic distribution of program dollars.
Key Outcomes
- Item 1 (HSH budget): Motion to file the hearing passed 4‑0 (Chair Haney, Vice Chair Safai, Members Marr and Walton; Member Ronan absent for the vote). The hearing was filed.
- Item 2 (MOHCD budget): Motion to file the hearing passed 4‑0 (Chair Haney, Members Safai, Marr, and Walton; Member Ronan absent for the vote). The hearing was filed.
- The committee directed HSH and MOHCD to provide supplemental information in writing, including detailed data on safe parking funding, small sites acquisitions, BMR homeownership ethnicity breakdowns, geographic distribution of grants, and updated guidance on small sites and down payment assistance programs.
Meeting Transcript
The meeting will come to order. This is the March 3rd, 2021 budget and appropriations committee meeting. I am Matt Haney, Chair of the Budget and Appropriations Committee. I am joined by committee members President Walton, Superv Supervisors Ronan Safai and Marr. I believe most of them are here or on their way. And our clerk is Miss Linda Wong. I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting. Madam Clerk, do you have any uh announcements? Yes, Mr. Chair. Due to the COVID-19 health emergency interport board members, city employees and the public, the Board of Supervisors, Legislative Table, and Committee Room are closed. However, members will be participating in the meeting remotely. This precaution is taken pursuant to the various local, state, and federal orders, declarations and directives. Committee members will attend the meetings of video conference and participate in the meeting to the same extent as if they're physically present. Public comment will be available on each item on this agenda for Channel 26 at SFGTV.org while streaming the number across the screen. Each speaker will be allowed two minutes to speak. Comments are opportunities to speak during public comment period available via phone call by calling 415-655-0001 meeting ID 1875. Then press pound twice. When connected, you will hear the meeting discussions, but you will be muted and in the listening mode only. When your item of interest comes up, dial star three to be added to the speaker line. Best practices are to call from a quiet location, speak clearly and slowly, and turn down your television or radio. Alternatively, you may submit public comment in the following way. Email to myself, the budget and finance committee class at L-I-N-D-A.org. If you submit public comments via email, it will be forwarded to the supervisors and will be included as part of the official file. Mr. Chair, this concludes my announcement. Thank you so much. Can you please call item one? Yes, item number one is a hearing on the overview of the Department of Homelessness and Support of Housing Sudges of Fiscal Year 2021 to 2022 and 2022 to 2023. Members of the public who wish to provide public comment on this item should call 415-655-0001 meeting ID 187-51693. Then press pound twice if you have not already done so. Please start three Sharana to speak. Assistant POM will indicate you have raised your hand. Please wait until the system indicates you have been a muted and you're maybe in your comments. Thank you so much. Um Madam Clerk. This will of course not be uh anywhere near to the last opportunity for us to have a dialogue with them by holding them and asking them to appear uh early to have this conversation uh before spring budget meetings. Uh and this was a top request and priority of our both of our committee and uh other members of the board of supervisors to uh have them appear. So with that, uh I'm gonna turn it over to you, uh interim director. And we have somebody who needs to mute, or maybe that's I'm gonna go to the next one. Are we joined by good afternoon, Chair Haney? Can you hear me? Yes, and can we mute thank you? Yes, I can hear you. Thank you. Good afternoon, Chair Haney and members of the budget appropriations committee. I I do still hear have have some background noise. I don't know if it's hard for others to hear. Yes, so someone calling in from the 4000 5544000. Can we mute that person or ask them to mute?
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