SF hotels that took part in city's interim housing schemes got trashed, still closed awaiting millions in repairs
Depicted: Hotel Whitcomb in San Francisco, CA. Image by Erica Fischer
At the peak of SF's hotel shelter program, more than 400 homeless people lived in the eight-story Hotel Whitcomb. Sources said the period was marked by chaos, rampage, overdoses, and property destruction. The SF Standard reports.
Nearly two years after receiving $32 million from the city to repair its damaged infrastructure and make up for lost revenue during the pandemic, the historic Market Street Whitcomb Hotel, co-owned by New York real estate magnate Aby Rosen, is still a carcass in a neighborhood gasping for air.
The Whitcomb was one of 25 hotels that joined a $415 million initiative to shelter San Francisco’s homeless population during the pandemic. Owner RFR Holding, led by Rosen, received the largest cut of them all, totaling $89 million for a 33-month contract.
An unprecedented effort to move thousands of homeless people off the city’s streets ended with a controversial legacy. After the program ended, RFR and the owners of eight other hotels filed legal claims against the city for millions in damages. RFR alleged that program clients destroyed $29 million worth of property, and the hotel lost out on $35 million in revenue.
The city settled with RFR for $32 million, more than five times the amount any other hotel received, paying the company an additional $19.5 million on top of its initial contract. This brought the Whitcomb’s final receipt for the initiative to $108 million.
The Union Square Hotel is still undergoing repairs since converting to a temporary homeless shelter. | Source:Camille Cohen for The Standard
A person in a coat and hood walks past the entrance of Tilden Hotel. The building's facade is dark with signage and a distinct round logo above the door.
The Tilden Hotel remains closed despite receiving a settlement of $2.9 million.
“It was such a chaotic time,” said Steve Good, CEO of Five Keys. “There was a mad rush to get people into shelter, which undoubtedly did save lives.”
The city temporarily sheltered more than 3,700 people over two years, with 1,835 moving into housing from the hotels. Proponents credit the program for staving off an increase in homelessness after traditional shelters drastically reduced capacity, and millions of people nationwide lost their jobs.
Read the whole thing here.
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