Mayor Lurie proposes shifting 89M earmarked for housing to fund homeless shelters instead

San Francisco Mayor Daniel Lurie proposes to redirect $88. 5 million from housing funds to shelters as part of his “Breaking the Cycle” initiative, aimed at tackling the city’s homelessness crisis. This amount constitutes around 30 percent of the anticipated revenue from Proposition C for the upcoming fiscal year. The plan would finance 572 beds and provide 130 hotel vouchers for families, prioritizing immediate shelter needs over long-term housing solutions. Critics, including Homeless Oversight Commission members, caution that this shift could worsen the city’s shelter-to-housing transition, which saw only 13 percent of shelter exits lead to permanent housing in 2024.

Lurie defends the move, stating that the fentanyl crisis has necessitated a focus on shelter and behavioral health services. The ordinance requires eight votes from the Board of Supervisors to pass, highlighting the contentious nature of the funding shift. Advocates argue that reallocating funds could disproportionately impact vulnerable groups, particularly homeless youth and families. Former city officials call for more collaboration with experienced stakeholders to address the homelessness issue effectively.