San Francisco to revamp $500M homelessness contracts with performance-based funding

Mayor Daniel Lurie unveiled a plan to restructure San Francisco’s homelessness spending, targeting about $500 million in annual contracts overseen by the Department of Homelessness and Supportive Housing. Starting now and extending to 2029, the department will competitively re-award these agreements with language that stresses accountability and links payments to proven outcomes. City leaders said the shift is meant to end “blank checks” after criticism that billions have been spent with limited success.

The initiative follows high-profile misconduct cases, including former United Council of Human Services CEO Gwendolyn Westbrook’s fraud charges and a 2024 audit that flagged HomeRise for inappropriate use of taxpayer funds. Feedback will be gathered from service providers, advocates and other stakeholders to shape performance metrics. Officials hope the new framework will help lower the city’s historically high homeless rate and keep streets safer and cleaner.