The Mayor’s Proposed FY2026-28 budget:
- Builds a more integrated, responsive and proactive health and homelessness system of care that will help move people quickly from the streets into effective care and sustained recovery or housing, at the highest flow rate for the lowest possible cost.
- Includes a $37.3 million investment over two years to expand and enhance homelessness prevention services for adults, families, young adults, older adults and people with disabilities. This investment addresses the upstream affordable housing crisis and prevents chronic homelessness from happening in the first place.
- Includes $140 million over two years to expand, strengthen and enhance Supportive Housing, including $81.7 million to add 800 new slots of housing subsidies for adults, families and Transitional Age Youth (TAY).
- Includes a $37.5 million investment over two years to expand and enhance interim housing capacity with beds and services targeted to the needs of those struggling on the street, and another $17.1 million to sustain multi-year investments in interim housing.
HSH will present the Mayor’s proposed budget to the Homelessness Oversight Commission on June 4th, and at the Budget and Appropriations Committee of the Board of Supervisors on June 11th and 18th.
FY 2026-28 Proposed Key Initiatives
Expanding Services for Families
$64.6 million in new investments across two years to expand and enhance services for families experiencing homelessness.
- $27.2 million for to 200 rapid rehousing slots a portion of which will be dedicated to the Moving On 2.0 initiative for families ready to leave PSH.
- $7.4 million to add up to 100 new Family Shallow Subsidies.
- $6.6 million for medium-term subsidies to support families exiting SROs. Budgeted to provide up to 50 new subsidies.
- $6.3 million to add 50 new family emergency hotel vouchers. These units may serve families as well as subpopulations of families including but not limited to pregnant people, households fleeing violence and families living in vehicles.
- $6.6 million to support the identification, anticipated capital and operations of a new SFUSD family stayover program as required by the SFUSD settlement. Under the settlement, SFUSD must identify a site for this new program and the City must identify funding to operate. No site has been identified at this point in time.
- $1.3 million to sustain housing navigation services at the Department of Early Childhood’s Family Resource Centers.
- $542,000 to increase Money Management, Debt Relief, and Financial Counseling services for families.
- $250,000 to continue UCSF nursing services for households at the Margot.
- $5.7 million to support short-term case management and additional flexible financial assistance for families and young adults accessing Prevention services. This amount serves both families and TAY.
- $2.2 million to support new workforce development strategies. This amount reflects total cost across all populations including families.
- $480,000 to support move-in costs for housing eligible families and TAY.
$9.2 million in multi-year sustained investments to maintain capacity and programming serving families experiencing homelessness.
- $8.4 million to continue 115 family hotel vouchers brought online in FY2024-25 under the Safer Families Plan.
- $840,000 to maintain 10 emergency hotel vouchers for households fleeing violence, for a total investment of $1.7 million over two years.
Expanding Services for Transitional Age Youth (TAY)
$36.3 million in new investments across two years to expand and enhance programming for young adults.
- $19.1 million for up to 200 new rapid rehousing slots, a portion of which will be dedicated to the Moving On 2.0 initiative.
- $6.4 million to support TAY transitional housing.
- $2.3 million to add 20 new TAY emergency hotel vouchers.
- $42,400 to expand capacity of the Money Management program for households in scattered sites programs. This amount is the new investment to support the TAY portion.
- $5.7 million to support enhanced prevention services for families and TAY accessing prevention services.
- $2.2 million to support new workforce development strategies. This amount reflects total cost across all populations including TAY.
- $480,000 to support move-in costs for housing eligible families and TAY.
Prevention
$37.3 million over two years to expand and enhance homelessness prevention services for adults, families, young adults, older adults and people with disabilities.
- $5.7 million for new enhanced prevention services for families and transitional age youth.
- $2.2 million for new workforce development strategies.
- $1.3 million for housing navigation for family resource centers.
- $480,000 for housing move-in costs for families and transitional age youth.
- MOHCD Prevention Package:
- $16.4 million to provide project-based operating subsidies for extremely low-income households.
- $8.7 million to invest in a diverse array of legal service providers with a focus on homelessness prevention and eviction prevention.
- $2.3 million to serve an additional ~80 older adults and people with disabilities.
Housing
$140 million over two years to expand, strengthen and enhance Supportive Housing including $81.7 million to add 800 new slots of housing subsidies for adults, families and transitional age youth.
- $27.1 million for 20 new rapid rehousing slots for families.
- $11.5 million for 150 new rapid rehousing slots for adults.
- $9.9 million for about 100 slots for Moving On 2.0 for adults.
- $7.4 million for 100 new family shallow subsidies.
- $6.6 million for subsidies to support about 50 families exit SROs.
- $6.4 million for 200 new rapid rehousing slots for transitional age youth.
Interim Housing
$37.5 million over two years to expand and enhance interim housing, and $17.1 million to sustain multi-year investments.
- $8.6 million for 70 new emergency hotel vouchers for families and TAY.
- $6.6 million for capital and operating funding for a new SFUSD family stayover program as required by the SFUSD settlement.
- $5 million for a Program Stabilization Fund to stabilize at-risk shelter providers.
- $500,000 for a Workforce Safety Assessment for site-based shelter programs.
- $14.7 million to continue 175 emergency hotel vouchers for families, adults, and survivors of violence.
- $2.4 million to continue shelter ambassador services at Embarcadero and 685 Ellis.
Transition of Outreach Teams
Last year’s integration of nine siloed street outreach teams led to an increase in shelter placements and acceleration of 311 response times. Building on that strategy, the proposed budget supports the full consolidation of street outreach functions under the San Francisco Department of Public Health (SFDPH). SFDPH will assume operational responsibility for the City’s street teams beginning July 1st.
- Decrease of $9.9 million in FY2026-27 to transition of 11 positions and 2 contracts to the Department of Public Health.
Our City, Our Home Fund Two-Year Spending Plan
The Our City, Our Home (OCOH) Fund supports the Mayor’s Breaking the Cycle initiative by maintaining key investments addressing homelessness in the face of funding insecurity at the state and federal levels. The proposed budget does not include any cuts to any existing OCOH funded programs. The proposed OCOH budget:
- Creates a new $98 million Prop C reserve with excess FY 2026 projected receipts to absorb anticipated Federal and State cuts including Emergency Housing Voucher expirations, Continuum of Care reductions, etc.
- Invests $37.3 million to expand and enhance Homelessness Prevention for adults, young adults, families, older adults and people with disabilities.
- Invests $54.7 million to expand, strengthen and enhance interim housing, including 70 new emergency housing vouchers and extensions of an additional 175.
- Invests $140 million to expand, strengthen and enhance supportive housing, including 800 new time-limited housing subsidies.
To achieve these investments, legislation was required to authorize a temporary lift of the OCOH 12% cap on short-term rental subsidies for FY 2027-2028.
- Allows more housing funds to support rapid rehousing, shallow subsidies, and temporary rental assistance.
- Focuses on families, transitional age youth, and adults.
- Maintains existing OCOH funding categories and does not change future allocation percentages.
- Builds on prior temporary cap lifts approved for previous fiscal years, through FY 2026-2027.