Lurie’s homeless plan hits an early snag as SF shutters 116-person shelter

San Francisco is closing a 104-bed homeless shelter in the Tenderloin, complicating Mayor Daniel Lurie’s self-assigned task of creating 1,500 beds by July.

The Cova Hotel, which previously sheltered 116 people, will close Feb. 25 due to concerns about its impact on the neighborhood, according to the Department of Homelessness and Supportive Housing.  

The city opened the hotel as a shelter during the pandemic. It wasn’t long before community members alleged that the facility, run by Episcopal Community Services, attracted drug use and lawlessness.

City officials said they’ve transferred 79 Cova residents to other shelters and 14 into housing. Another 10 clients reportedly abandoned their beds, eight were removed for rule violations, two were incarcerated, one person took a bus ticket home, and another guest died. Just a single person still lives in the hotel.

Meanwhile, San Francisco’s largest shelter, MSC-South, has reduced its capacity by 30 beds for a 16-month construction project. A vehicle triage site in the Bayview with capacity for 35 RVs is also set to close in spring. This will temporarily leave the city with at least 169 fewer beds than when Lurie was voted in as mayor.

The Board of Supervisors told the Department of Homelessness and Supportive Housing last year that because of poor conditions on streets around the Cova Hotel, it would not extend the hotel’s contract past March. The site will be returned to its owner, Shin International, this spring. 

“Throughout the operations, the Cova program struggled to maintain the exterior of the program and live up to expectations of minimal impact on the community,” the department said in a statement.

The hotel, which offered private rooms, has sheltered many people with chronic conditions or mental health problems.

Beth Stokes, executive director of Episcopal Community Services, said the nonprofit is “deeply concerned” by the decision to close the site. The nonprofit attempted to negotiate with the city on the cost and to find alternative locations, Stokes said, but they were unable to reach a resolution.

“The untimely closure of this shelter would significantly decrease ECS’ interim service capacity at a time when the city is seeking to ramp up shelter bed availability,” Stokes said. She added that ECS will have to lay off more than 50 employees due to the closure.

Christin Evans, a member of the Homeless Oversight Commission, warned against moving vulnerable people into shelters where they may have to share a room or have less access to services.

“I do hope the city is looking for other ways to address people’s needs,” Evans said.

While on the campaign trail, Lurie vowed to “end unsheltered homelessness” by building 1,500 shelter beds in six months. His administration has since backed off the promise of ending street homelessness. In January, an adviser to the mayor told The Standard the bold claim was a “slip-up.” 

However, in a statement, Lurie spokesperson Charles Lutvak reiterated the mayor’s timeline to build 1,500 beds, contending that it requires reprioritizing funds from ineffective programs.

“If we continue throwing millions of dollars at failing initiatives, we will continue failing the people sleeping on the street every night and all San Franciscans,” Lutvak said. “Our administration will work aggressively towards [Lurie’s] ambitious goal of adding 1,500 beds with quality services, accountability for nonprofit providers, and concrete metrics.”

The Board of Supervisors voted Tuesday to approve Lurie’s first proposed law, which is intended to cut red tape and enable the rapid construction of shelters and the addition of treatment beds. However, Lurie hasn’t released details on where or when these facilities may open. 

The fate of the Cova Hotel, brought down by neighbors’ complaints, may serve as a cautionary tale for the new mayor. History shows he will likely face intense opposition from locals as he attempts to build shelter facilities near their homes.