Lurie Administration Tied Homelessness Funding to Results
New performance-based contracts will replace existing agreements for service providers citywide.
Updated on Sept. 29, 2026 in Remote Work
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San Francisco officials have mandated that homelessness service providers meet specific performance benchmarks to continue receiving city funding. The administration also ordered the closure of the Sixth Street Self-Help Center, moving those services into the Tenderloin.
Why it matters
The shift follows a 2023 Civil Grand Jury report that criticized the city for using inconsistent measures to track contract outcomes. By tying dollars to results, the city aims to increase accountability for nonprofits operating within the local homelessness response system.
The city is transitioning from legacy agreements to contracts tied to specific performance metrics, following a 2023 Civil Grand Jury finding that highlighted the lack of standardized evaluation tools. Specific targets for individual providers are currently being determined.
The players
Daniel Lurie
The Mayor of San Francisco who introduced the performance-based contracting policy.
Matt Dorsey
The current District 6 supervisor who is seeking reelection in November 2026.
Alex Behrend
A candidate challenging the incumbent for the District 6 supervisor seat.
Department of Homelessness and Supportive Housing
The city agency responsible for managing contracts with homelessness service providers.
Hospitality House
The service provider operating the Sixth Street Self-Help Center that is being relocated to the Tenderloin.
The details
The Department of Homelessness and Supportive Housing is implementing this policy to ensure providers deliver measurable results. As part of this broader shift in service management, the city ordered the Hospitality House Sixth Street Self-Help Center to relocate its operations to the Tenderloin. The administration notes this move follows sustained complaints regarding street conditions on Sixth Street.
Timeline
May 9, 2022: Matt Dorsey was appointed as the District 6 supervisor.
2023: A Civil Grand Jury conducted a review of city homelessness contracts.
September 2026: The Lurie administration announced the new contract policy.
November 2026: The District 6 supervisor election takes place.
Across the Bay
This policy move follows the findings of the 2023 Civil Grand Jury report, which exposed how inconsistent metrics previously hampered the city's ability to track provider efficacy. The new administration is now formalizing the performance standards that the grand jury previously identified as missing.
Residents in SoMa can expect the Sixth Street Self-Help Center to cease operations as it moves its services to the Tenderloin. The broader changes to contract oversight are expected to shift how city-funded services operate in your neighborhood throughout the coming months.
The takeaway
The city is moving toward a system where homelessness nonprofit funding is contingent on achieving verifiable results. Watch for updates from the Department of Homelessness and Supportive Housing regarding how these new performance targets are applied to service providers in your district.
Further reading
For more on how the city manages its workforce and service contracts, visit the San Francisco remote-work section.
More information
To learn more about local government services or upcoming elections, visit the San Francisco voter registration portal.
Source note: This article includes information reported by Mission Local.
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Should the city tie homelessness nonprofit funding to specific performance results?
