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Following $30 million shortfall, SF Housing Authority lands in default

The city of San Francisco will take over the San Francisco Housing Authority after the U.S. Department of Housing and Urban Development sent notice to The City Thursday that the housing authority is in default.

In the notice, HUD is requiring the city to assume responsibility for the housing authority’s essential functions because of several agreements and obligations the housing authority has failed to meet, Mayor London Breed’s office said.

In a statement, Breed said that during the transition she’ll focus on making sure that the thousands of San Franciscans who rely on the housing voucher program won’t be affected:

“My first priority is to ensure that the 14,000 households that rely on the housing authority subsidies keep their housing. At the same time, I am also committed to ensuring that the housing authority’s employees are not unfairly harmed by the actions of the housing authority, and that The City meet the obligations HUD has outlined.”

Breed added:

“The time has come for real transformation of the Housing Authority to ensure both long term housing stability for our residents, and to continue moving forward with our multiyear effort to rebuild and transform distressed public housing communities. My office and city departments will be working closely with the housing authority during this transition to ensure residents are protected.”

In October, it was revealed during a hearing at the Board of Supervisor’s Government Audit and Oversight Committee that the housing authority had a shortfall totaling less than $30 million.

Breed, who grew up in San Francisco public housing, said The City’s public housing revitalization program HOPE SF is currently focused on rebuilding 1,400 units of dilapidated homes.

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