San Francisco will get $54.7 million to purchase SoMa constructing for homeless housing
San Francisco has secured $54.7 million in state funding that will help the city purchase a 160-room SoMa building to house formerly homeless people.
Officials said Tuesday the money from California’s Project Homekey will be used to purchase and operate the Panorama Building at Mission and Ninth Streets.
The state is providing approximately $46 million in capital funding, which will cover approximately half of the city’s $86.5 million acquisition cost. An additional $8.5 million from Project Homekey will cover operating costs.
According to the Office of the Mayor of London Breed, funds from the San Francisco Proposition C business tax will cover the remaining capital and operating costs.
Formerly a student residence, the building is particularly useful as it contains 40 three-bedroom suites that can accommodate families with children. The San Francisco Conservatory of Music and the California College of the Arts once leased the building, but both schools have now opened their own student housing.
San Francisco’s board of directors this year agreed to acquire the Panoramic — despite some neighborhood opposition — as the city seeks more housing options for those living on the streets. The city has approved the purchase or lease of nearly 1,200 of the 1,500 permanent housing units planned over the next two years.
The city also offers rental vouchers to help homeless people find housing.
But with more than 8,000 people currently homeless, more options are needed.
“As we continue to move forward with our homelessness recovery plan, we must use every opportunity and resource we have to ensure all people have the shelter and support they need,” Breed said in a statement.
City leaders said Project Homekey’s funding for the panorama is part of a $113 million funding round for five projects across the state. The five projects offer a total of 392 residential units.
San Francisco received $76.9 million last year from Project Homekey, which helped the city open about 360 assisted living units at the Hotel Diva and the Granada Hotel.
“It is critical that we provide more housing, shelter, prevention and distraction for the homeless in our community,” Shireen McSpadden, executive director of the city’s Department of Homelessness and Supportive Housing, said in a statement.
Hotel acquisition is a critical aspect of San Francisco’s efforts to help the homeless.
The city had attempted to purchase a tourist hotel in Japantown for similar accommodations, but the owner eventually backed out after residents and businesses opposed the plan.
Recently, San Francisco considered purchasing a 114-room residential hotel on Turk Street near Jefferson Square Park – less than a mile from the Japantown site. That building, a single-occupancy hotel called Vantaggio Suites, already has 42 residents and officials have said none will be evicted if the deal is approved next year.
JD Morris is a contributor to the San Francisco Chronicle. Email: jd.morris@sfchronicle.com Twitter: @thejdmorris
