San Francisco Implemented New Homelessness Service Contracts

Mayor Daniel Lurie introduced performance-based metrics to hold city homelessness service providers accountable.

Updated on Sept. 29, 2026 in Remote Work

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San Francisco Mayor Daniel Lurie has launched new performance-based contracts for homelessness service providers to improve transparency and municipal accountability. AI Illustration. Upload story photo >

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Mayor Daniel Lurie's administration has replaced existing city contracts with new agreements tied to specific performance-based metrics. The move follows a 2023 Civil Grand Jury report that criticized the city for utilizing inconsistent measures when evaluating homelessness service providers.

Why it matters

The city aims to increase transparency and accountability for non-profits receiving public funding for homelessness initiatives. This policy shifts the administration toward standardized expectations that replace previous, less consistent oversight methods.

The administration is shifting to standardized metrics after a 2023 Civil Grand Jury found San Francisco utilized inconsistent evaluation methods for homelessness contracts. Specific performance targets are currently being set for each individual service provider.

The players

Daniel Lurie

He is the current Mayor of San Francisco who is spearheading the new administrative policies for city service providers.

Matt Dorsey

He is the District 6 supervisor who oversees neighborhoods including SoMa, Mission Bay, Treasure Island, and Yerba Buena.

Alex Behrend

He is a political candidate currently challenging incumbent Matt Dorsey for the District 6 supervisor seat.

Hospitality House

It is a community organization that operates the Sixth Street Self-Help Center which has been ordered to move its services.

The details

The city has ordered the closure and relocation of the Hospitality House Sixth Street Self-Help Center to the Tenderloin following complaints regarding local street conditions. The Department of Homelessness and Supportive Housing is now tasked with managing providers through these new, result-oriented performance agreements.

Timeline

  1. Matt Dorsey was appointed supervisor on May 9, 2022.

  2. A Civil Grand Jury reviewed homelessness contracts in 2023.

  3. The new contract policy was announced in September 2026.

  4. The District 6 election is scheduled for November 2026.

Market Landscape

This policy shift mirrors efforts by local governments to consolidate service oversight following external audits of public expenditures. The administration aims to standardize the fragmented landscape of homelessness services by tying funding directly to measurable outcomes.

Residents in the Tenderloin may see a shift in service availability as the Hospitality House center relocates from Sixth Street. For the broader public, this policy aims to ensure that tax dollars allocated to homelessness non-profits are tied to tangible service improvements.

The takeaway

The move to performance-based contracts signals a stricter fiscal approach to addressing chronic municipal challenges. Voters should monitor whether these new metrics lead to improved street conditions and service efficacy in their neighborhoods.

What happens next

The District 6 supervisor election between incumbent Matt Dorsey and challenger Alex Behrend is scheduled for November 2026.

Further reading

For more on local governance and labor trends, visit Remote Work.

More information

To learn more about local elections or update your information, 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?