Mayor Lurie Celebrates $56 Million in State Funding to Advance Supportive Housing in San Francisco

SAN FRANCISCO – Mayor Daniel Lurie today celebrated $56.3 million in critical Proposition 1 funding awarded by the California Department of Housing and Community Development (HCD) as part of the Homekey+ program. The funding will support the acquisition and rehabilitation of 1035 Van Ness Avenue, a new supportive housing community that will create 124 new homes for formerly homeless veterans, and the rehabilitation of 835 Turk Street, a 106-unit building for adults exiting homelessness.

The projects build on Mayor Lurie’s work to expand affordable housing and social services for San Franciscans. As part of his Breaking the Cycle plan, Mayor Lurie is significantly expanding the city’s recovery and treatment bed capacity to address the city’s homelessness and behavioral health crisis. He is taking bold steps to make San Francisco more affordable for workers and future generations—ensuring that the next generation of San Franciscans can afford to raise their families in the city through his Family Zoning plan. The mayor has cut the ribbon and celebrated progress on a number of affordable housing projects in San Francisco throughout the last few months.

“Our administration is transforming the city’s response to the homelessness and behavioral health crisis and adding affordable housing—so that San Franciscans can afford to stay in the city they love,” said Mayor Lurie. “With these two projects, we are revitalizing underutilized spaces into affordable housing and taking another step to address San Francisco’s housing crisis.”

“Our veterans have served us and this country proudly, and we are proud to step up and support them in kind. With these two new projects in District 2, we will add over 150 homes for some of our city’s most needy, the majority of whom are veterans who served our country,” said District 2 Supervisor Stephen Sherrill. “These projects will transform lives and make real progress on improving our street conditions, and I’m proud they’re in my district.”

The 1035 Van Ness site will be operated by Swords to Plowshares and transform a former assisted living facility into 124 permanent supportive homes for veterans. The site will include community spaces and onsite supportive services including mental health care, case management, peer support, and congregate meals, with direct connections to Swords’ broader wraparound programs such as legal assistance and job training. The Mayor’s Office of Housing and Community Development and Department of Homelessness and Supportive Housing is providing additional financing for rehab and long-term operational support.

“Every veteran deserves more than just a roof over their head—they deserve a safe, dignified place to call home,” said Tramecia Garner, Executive Director of Swords to Plowshares. “With 1035 Van Ness, our seventh supportive housing site in San Francisco, nearly 600 veterans will now have access to permanent housing and the supportive services that help them thrive. The progress we’ve made—cutting veteran homelessness in half—shows what is possible when the VA, the city, the state, and community-rooted organizations like Swords come together to ensure no veteran is left behind.”

“This exciting project is a powerful example of what we can achieve when we come together in California,” said Lindsey Sin, California Department of Veterans Affairs Secretary. “Through this partnership between Swords to Plowshares and local government leaders, we are not only expanding services but also creating lasting impact for veterans in San Francisco. This collaboration will provide meaningful support, honor their service, and help ensure that veterans and their families have the stability and opportunities they deserve.”

The 835 Turk Street site was purchased by the City and County of San Francisco in 2022 and has been operated as permanent supportive housing since its acquisition. The existing ground floor will be reconfigured to serve as a space for supportive services and common areas, with additional amenities including an on-site community kitchen, community room, and bicycle parking.

Five Keys Housing, a nonprofit organization dedicated to providing supportive housing and wraparound services for individuals experiencing homelessness, incarceration, or behavioral health challenges, will oversee the transformation of the site in partnership with the Tenderloin Neighborhood Development Corporation (TNDC).

“Five Keys is excited to receive this Homekey+ funding award which will create safe, and permanent housing for individuals who might otherwise have no access to stable housing,” said Steve Good, President and CEO of Five Keys. “This marks another important and meaningful step forward for both Five Keys and the City of San Francisco in addressing the housing crisis and creating pathways to dignity and stability for our community.”

“TNDC is proud to partner with the City and County of San Francisco and Five Keys to bring new life to 835 Turk Street,” said Chris Cummings, TNDC Vice President of Real Estate. “With support from the Homekey+ program, this project will provide deeply needed homes and stability for people experiencing homelessness. We’re honored to help turn this state investment into lasting community impact.”

Tenants will continue to have access to programs and activities provided by Five Keys as well as behavioral health support from the Department of Public Health’s Permanent Housing Advanced Clinical Services team.

In addition to the Homekey+ funds, financing for the rehabilitation of 835 Turk comes from voter-approved 2020 Health and Recovery General Obligation bonds and Our City, Our Home funds. Acquisition support for 1035 Van Ness and early professional services support for 835 Turk was provided by the San Francisco Housing Accelerator Fund, a key partner to the city in advancing its Homekey portfolio, providing project management, technical expertise, and over $140 million in flexible financing to help projects move quickly.

“When we move quickly and strategically, we can produce outsized outcomes,” said Rebecca Foster, CEO of the Housing Accelerator Fund. “For a fraction of the cost San Francisco just obtained a high-quality asset, and our veterans and other vulnerable residents finally have safe, dignified homes designed to support their well-being.”

Proposition 1, passed by voters in March 2024, established the Behavioral Health Bond, authorizing $6.4 billion to expand behavioral health treatment beds, supportive housing, and services for veterans and individuals with behavioral health needs. A key component of this funding is Homekey+, a program administered by HCD, which supports people experiencing or at risk of homelessness, with a focus on veterans and individuals with serious mental illness or substance use disorders.

“Each of these awards represents a pathway to stability and opportunity for so many Californians who have struggled to maintain housing amid rising costs and personal challenges, including our nation’s veterans,” said Gustavo Velasquez, HCD Director. “Modeled on the governor’s highly successful Homekey program—and made possible by the forward-thinking voters of this state—Homekey+ is laying the foundation for generational impacts and continued reductions in unsheltered homelessness.”

Since the inception of the Homekey grant program, the city has been awarded approximately $239 million in Homekey funds that have supported the acquisition and operation of more than 1,000 new units of permanent supportive housing serving adults, youth, families, and veterans.

“The impact of state Homekey grants in San Francisco cannot be overstated,” said Shireen McSpadden, San Francisco Department of Homelessness and Supportive Housing Executive Director. “Homekey is an essential tool that has enabled us to create new opportunities for housing and support service, effectively helping to change the life trajectory for many of the residents.”