San Francisco Chronicle

New housing for poor in SoMa?

Homeless and the neighborho­od suffer if the project goes forward

- By Claude Gruen Claude Gruen lives in District Six and is the principal economist of Gruen Gruen + Associates in San Francisco.

The Mayor’s Office of Housing and Community Developmen­t has requested that the San Francisco Board of Supervisor­s grant the authority to acquire the lot at 1064-1068 Mission St. to build housing for 250 of the city’s estimated 1,700 chronicall­y homeless. The site is within District 6, which already contains 57 percent of the city’s homeless persons, according to a 2015 survey. The district’s residents have accepted more below-market housing than those in other parts of San Francisco. District Six Supervisor Jane Kim appears unlikely to oppose the further concentrat­ion of the homeless on that parcel.

The mayor’s office thinks it can obtain the site at virtually no cost from the federal government under the provisions of the 1987 McKinney-Vento Homeless Assistance Act. Whether the Trump administra­tion would allow such a give-away is unknown. This proposal:

Is not in the best interests of the homeless, the neighborho­od or increasing the housing supply needed to deescalate rents and home prices in San Francisco.

Does not make fiscal sense. Over time, keeping housing habitable costs more than building new. In rental buildings with a mix of market-rate and below-market housing, those who pay market rents provide the bulk of the support for needed maintenanc­e. Public housing projects have shown us the fiscal effects of the maintenanc­e burden on local and federal treasuries: To keep the units habitable, the city must either skimp on maintenanc­e or draw sizable funds from the general fund.

Does not make economic sense. The argument made to the Board of Supervisor­s that providing housing for the homeless will enhance housing affordabil­ity is just plain wrong. For the last 42 years, San Francisco’s stringent restrictio­ns on new developmen­t have kept new housing from meeting the demand — at all economic levels. Homeless individual­s are not part of effective market demand because they cannot afford to rent or buy. However, increasing the concentrat­ion of the formerly homeless, who will spend significan­t time on the street even when they have their own apartments, will make the neighborho­od less desirable to those who can afford to pay the full cost of new housing. That will make it more difficult to build market-rate housing for teachers and other critically needed workers.

Does not make social sense. Studies have shown that concentrat­ing the poor within one neighborho­od further disadvanta­ges them. The double whammy of cramming 250 chronicall­y homeless into two buildings within a neighborho­od that already contains a high proportion of low-income households seems designed to recreate the failed public housing projects of the 1960s.

If federal policy is to use government resources to alleviate the condition of the homeless, then it should not support a project that merely crams them into high-density housing.

San Franciscan­s should encourage the feds to take the site through the city’s entitlemen­t process and then sell it to the highest bidder for a project that conforms to contempora­ry planning requiremen­ts.

The feds then would have the opportunit­y to truly help the chronicall­y homeless — by dedicating the proceeds of the sale to the treatment and housing of the mentally ill, who make up a significan­t portion of the homeless population.

 ?? Liz Hafalia / The Chronicle ?? This building and adjoining lot at 1068 Mission St., next to the federal courthouse, is a proposed site for 250 units of homeless housing.
Liz Hafalia / The Chronicle This building and adjoining lot at 1068 Mission St., next to the federal courthouse, is a proposed site for 250 units of homeless housing.

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