Mayor Lurie Outlines Plans for Nearly 100 New Treatment and Recovery Beds, Including Locked Beds for People Under Mental Health Conservatorship

SAN FRANCISCO – Mayor Daniel Lurie today celebrated nearly $100 million in state Proposition 1 funding to expand access to lifesaving recovery and treatment services. The funding includes $70.2 million for 50 new locked subacute mental health treatment beds and six acute psychiatric beds at the University of California, San Francisco (UCSF) Health Hyde Hospital. It also includes $14.2 million to add 44 residential addiction treatment beds to a new city-owned behavioral health facility on Treasure Island. Another $11.2 million was awarded to help San Francisco transform an unused city building at 1660 Mission Street into a centralized hub for coordinated care by co-locating behavioral health programs and a sobering center in one location. 

The announcement of funding for three San Francisco sites comes shortly before the one-year anniversary of Mayor Lurie’s Breaking the Cycle plan, which is transforming the city’s response to the homelessness and behavioral health challenges. Earlier this year, the mayor improved and expanded the city’s Journey Home program to help reconnect people with loved ones, advanced the RESET Center to combat public drug use, and announced legislation in partnership with Assemblymember Catherine Stefani to support recovery for people with serious mental illness. In his first year in office, Mayor Lurie’s administration has opened more than 600 new treatment-focused beds and launched a 24/7 police-friendly crisis stabilization center at 822 Geary Street, which has shown greater success at connecting people in crisis to care.  

“San Franciscans struggling with addiction and serious mental illness should have a path to treatment and recovery,” said Mayor Lurie. “This state funding will help us expand critical treatment and recovery capacity in San Francisco. With more residential addiction treatment, locked beds, and recovery services, we can connect more people to care, keep them on the path to stability, and get people off the streets. I’m grateful to Governor Newsom for his partnership in addressing the behavioral health and homelessness challenges in our city.” 

“This critical funding allows us to expand residential treatment, add clinically required locked psychiatric treatment beds for people with the most complex behavioral health needs, and helps create a centralized hub where people with substance use disorder can start treatment, receive medications, and connect with case managers and providers,” said Daniel Tsai, SFDPH Director of Health. “We appreciate these state investments that will help more people access care faster, stay connected to treatment, and build a path toward long-term stability and recovery.” 

“Those of us who have pushed for expanded use of conservatorship to care for the most severely mentally ill San Franciscans have found ourselves repeatedly frustrated by the acute shortage of appropriate placements for conserved individuals. A year ago, the Residential Care and Treatment Workgroup that I co-chaired recommended the addition of between 50 and 100 locked subacute treatment beds to meet that need,” said Board of Supervisors President Rafael Mandelman. “Thanks to two rounds of Proposition 1 funding and great work by our Department of Public Health and UCSF, one year later we have a path to fully meeting that goal. This is astoundingly good news for everyone eager to see real and sustainable pathways off the streets for some of our sickest unhoused residents.” 

“Today’s news represents a major step forward for San Francisco. These nearly 100 new residential behavioral health treatment beds mean that help is on the way for both those who are suffering the most on our streets and for communities who have been impacted by challenging street conditions,” said District 3 Supervisor Danny Sauter. “District 3’s UCSF Hyde Hospital stands ready to do the life-saving work of recovery and rehabilitation of those under mental health conservatorship. I applaud Mayor Lurie, Director Dan Tsai, and state leadership for securing these funds for San Francisco.” 

“This is what a Recovery First city looks like—with major investments in drug treatment programs, mental health services, and coordinated care that supports and incentivizes long-term recovery from addiction,” said District 6 Supervisor Matt Dorsey. “This state investment will strengthen our full behavioral health continuum—especially for programs designed to help those struggling with addiction get off illicit drugs, rather than simply use them more safely. Kudos to the Lurie Administration for successfully applying for this much-needed funding, and thanks to California voters for passing Prop 1 two years ago.” 

SFDPH and UCSF Health applied for capital funding for these projects under Proposition 1, approved by California voters in March 2024. The legislation authorized more than $4 billion in Bond Behavioral Health Continuum Infrastructure Program (Bond BHCIP) funding for one-time behavioral health capital projects. San Francisco was awarded funding for 73 new locked and dual diagnosis treatment beds through Bond BHCIP last year.  

Locked Beds for UCSF Hyde Hospital

The city is partnering with UCSF Health to expand residential behavioral health care and treatment beds at UCSF Health Hyde Hospital, formerly known as UCSF Health Saint Francis Hospital. The project will rehabilitate existing space at UCSF Health Hyde Hospital to create 50 new locked subacute treatment beds for people under mental health conservatorship. These beds will be operated by Crestwood Behavioral Health, which operates the San Francisco Healing Center locked subacute treatment facility at UCSF Health Stanyan Hospital and SFDPH’s stabilization center at 822 Geary Street.  

In addition, UCSF Health plans to add six acute psychiatric inpatient beds to the existing 24-bed Behavioral Health Unit at UCSF Health Hyde Hospital.  

“Meeting the most critical health needs of our community takes strong institutions working together,” said Suresh Gunasekaran, President and CEO of UCSF Health. “We’re proud to partner with the City to expand access to much-needed behavioral health treatment capacity at UCSF Health Hyde Hospital. Investing in our community hospitals matters — Stanyan and Hyde are essential to delivering excellent care San Franciscans deserve close to home.” 

“Crestwood Behavioral Health, Inc. is pleased and proud to partner with the San Francisco Department of Public Health and UCSF Health to provide mental health services at this 50-bed Mental Health Rehabilitation Center and six-bed Psychiatric Health Facility at Hyde Hospital,” said Patty Bloom, Crestwood CEO. “Both of these programs will provide much-needed mental health services to some of our most vulnerable individuals in the community and support them on their road to recovery.” 

Treatment Beds on Treasure Island

The $14.2 million in funding will allow SFDPH to include a new 44-bed residential substance use treatment facility within a behavioral health building that will begin construction in winter 2026.  

Using other local and state funding sources to execute the project, the 64,000-square-foot, six-story building being constructed at Tradewinds Avenue and Mackey Lane will also be home to hundreds of recovery housing beds, including 172 existing Treasure Island beds, which will be relocated from former U.S. Navy housing that is slated to be redeveloped.  

Residential substance use treatment beds are in high demand, and a new residential treatment facility co-located with recovery housing will help achieve the city’s goal of helping more people reach sustained recovery. 

Recovery Hub and Sobering Center at 1660 Mission Street

As part of a previous round of BHCIP funding, the city secured $10 million for the acquisition of 1660 Mission Street, which was financed by a combination of state and local dollars. The $11.2 million in additional BHCIP funding will allow SFDPH to add a sobering center as part of the building’s conversion into a centralized hub for public health care services.  

The six-story building will expand existing SFDPH services in both volume and scope, doubling the space for clinicians, outreach teams, and other health care workers to meet with clients and provide care. The enhanced site will also improve access to on-demand medication treatment for fentanyl addiction and other substance use disorders, medical services, health assessments, case worker meetings, and pharmacy pick-ups.  

Many of the behavioral health care and treatment programs that will be relocated to 1660 Mission Street currently operate at 1380 Howard Street and other inadequate, leased spaces that can’t expand to meet demand. 

In addition to a centralized hub for behavioral health services, 1660 Mission Street will become the new, permanent home for San Francisco City Clinic. For more than 100 years, San Francisco City Clinic has been a leader in sexual health services, delivering compassionate and patient-centered care to those most in need. It currently operates out of an old firehouse at 356 Seventh Street that does not meet the needs of staff and patients.