Chapter 21B — CORE INITIATIVES ADDRESSING HOMELESSNESS, DRUG OVERDOSES

AND SUBSTANCE USE DISORDERS, MENTAL HEALTH NEEDS, INTEGRATED HEALTH NEEDS AND PUBLIC SAFETY HIRING ,

Sec. 21B.1. Purpose and Goals.

Sec. 21B.2. Definitions.

Sec. 21B.3. Core Initiative Contracts and Leases.

Sec. 21B.4. Authorization to Accept and Expend Donations.

Sec. 21B.5. Transfer of Funds.

Sec. 21B.6. Rules and Regulations; Reporting.

Sec. 21B.7. Sunset Provision.

For too long, San Francisco has faced crises related to homelessness, drug overdoses and substance use disorders, mental health needs, integrated health needs, and public safety hiring. The City wants to try innovative solutions to address these crises more effectively and more quickly, but longestablished rules often stand in the way of speedy progress. It is the intent of this Chapter 21B to expedite the City’s response to these challenges and expand the City’s capacity to meet these challenges: to give the City the tools to quickly and effectively implement the Core Initiatives described in this Chapter, so that it can continue to be accountable to, and responsive to the needs of, its residents.

(Added by Ord. 61-19, File No. 190047, App. 4/4/2019, Eff. 5/5/2019, Retro. 3/1/2019; amended by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

For purposes of this Chapter 21B, the following terms have the following meanings:

“Contracts” means contracts for public works under Chapter 6, contracts for commodities or services under Chapter 21, grants awarded under Chapter 21G, and loan agreements for affordable housing under Chapter 66 and/or Chapter 120.

“Core Initiative Contract” means a Contract that (1) procures commodities, services, or public works to directly address one or more Core Initiatives or that is required to support a Designated Department’s capacity to ensure the comprehensive operational and programmatic success of one or more Core Initiatives; or (2) provides funding for one or more Core Initiatives.

“Core Initiative Lease” means a Lease that provides for the use of real property to directly address one or more Core Initiatives;

“Core Initiatives” means one or more of any of the following: (1) Projects Addressing Homelessness, (2) Projects Addressing Drug Overdoses and Substance Use Disorders; (3) Projects Addressing Mental Health Needs; (4) Projects Addressing Integrated Health Needs. [1 ] and (5) Projects Addressing Public Safety Hiring.

“Department Head means the head of a Designated Department or their designee.

“Designated Departments” means the Department of Public Works, the Department of Homelessness and Supportive Housing, the Department of Public Health, the Police Department, the Sheriff’s Department, the Department of Emergency Management, the Human Services Agency, the Mayor’s Office of Housing and Community Development, the City Administrator, and the Department of Human Resources. In addition, the Mayor may designate additional departments or components of City government that are needed to support Core Initiatives to be Designated Departments, with approval of the Board of Supervisors by resolution.

“Lease” shall have the meaning set forth in Administrative Code Section 23.2.

“Projects Addressing Homelessness” means projects designed to prevent homelessness through the provision of housing subsidies or other services, and projects designed to provide shelter, housing, food, and/or social services to people experiencing homelessness.

“Projects Addressing Drug Overdoses and Substance Use Disorders” means projects designed to reduce drug-related deaths and support individuals with substance use disorders (SUDs). These projects include, but are not limited to, increasing access to treatment for individuals with SUDs, providing services to enhance the success of SUD treatment, such as co-delivered mental health treatment and contingency management incentives, providing an array of services to support individuals with SUDs in their living environments, and strengthening community engagement, outreach, intervention, and social support for people at high risk for overdose.

s to treatment for individuals with SUDs, providing services to enhance the success of SUD treatment, such as co-delivered mental health treatment and contingency management incentives, providing an array of services to support individuals with SUDs in their living environments, and strengthening community engagement, outreach, intervention, and social support for people at high risk for overdose.

“Projects Addressing Mental Health Needs” means projects designed to support people with mental health disorders, including, but not limited to, providing residential care and treatment services for both long- and short-term stays, providing case management, providing therapy, and connecting individuals with healthcare and medication, along with services to address co-occurring substance abuse disorders and/or medical needs.

“Projects Addressing Integrated Health Needs” means projects designed to serve people who are at risk of experiencing homelessness due to the potential loss of their shelter, housing, or release from an institution. These projects include, but are not limited to, shelter health services, linkages, case management, wrap around services, eligibility and benefits enrollment, and navigation services.

“Projects Addressing Public Safety Hiring” means projects to support the hiring process for, and/or the recruitment, training, and retention of, police officers, deputy sheriffs, and 911 operators.

(Added by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

(Former Sec. 21B.2 added by Ord. 61-19, File No. 190047, App. 4/4/2019, Eff. 5/5/2019, Retro. 3/1/2019; redesignated as Sec. 21B.3 by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

CODIFICATION NOTE

1. So in Ord. 10-25.

(a) Purpose. This Section 21B.3 is intended to streamline the process for Designated Departments to enter into Contracts and Leases for Core Initiatives that they otherwise are legally authorized to enter into, by waiving or modifying certain requirements that may otherwise apply to those Contracts and Leases. This Section 21B.3 is not intended to otherwise enlarge or expand the general contracting or leasing authority of Designated Departments as to different types of Contracts or Leases. In addition, with regard to competitive procurement rules, this Section 21B.3 is not intended to alter the obligation of Designated Departments to follow any such requirements that may apply under state or federal law or under the terms of funding agreements.

(b) Waiver of Requirements Related To Competitive Bidding For Contracts and Leases; Approval of Leases. A Designated Department that intends to enter into a Core Initiative Contract or Lease under this Section 21B.3 shall provide the Mayor an advance written justification explaining why the Contract or Lease is necessary to support a Core Initiative, and shall provide a copy of the justification to the Board of Supervisors. The following requirements are suspended as to such Contracts and Leases:

(1) Competitive Bidding For Contracts for Services, Commodities, And Grants To Address Homelessness. Notwithstanding Sections 21.1 and 21G.3 of the Administrative Code or any other provision of the Municipal Code, the Department of Public Works and the Department of Homelessness and Supportive Housing may enter into and/or amend contracts for services or commodities or grants for professional and other services or commodities relating to Projects Addressing Homelessness without adhering to the requirements of Sections 21.1, 21G.3, or any other competitive procurement requirements under City law.

(2) Competitive Bidding For All Other Core Initiative Contracts. Designated Departments may enter into or amend Core Initiative Contracts other than those specified in subsection (b)(1) without adhering to the competitive procurement requirements of Administrative Code Sections 21.1, 21G.3, 120.2(b), or any other competitive procurement requirements under City law. The authorizations granted under this subsection (b)(2) shall only apply to Contracts awarded on or before January 8, 2026 or approved under subsection (c).

ive Contracts other than those specified in subsection (b)(1) without adhering to the competitive procurement requirements of Administrative Code Sections 21.1, 21G.3, 120.2(b), or any other competitive procurement requirements under City law. The authorizations granted under this subsection (b)(2) shall only apply to Contracts awarded on or before January 8, 2026 or approved under subsection (c).

(3) Approval Of Core Initiative Leases. Designated Departments may enter into or amend Leases for Core Initiatives without adhering to the competitive bidding requirements in Administrative Code Sections 2.6-1, 23.27, 23.30, and 23.33, and without securing Board of Supervisors approval of said Leases as set forth in those Sections, except that: (A) the requirements in Sections 23.27 and 23.30 to obtain appraisals and appraisal reviews shall still apply, except that the effective date of value in the appraisal and appraisal review shall be no earlier than nine months before the Lease execution date; (B) Board approval shall still be required under Section 23.27 if the Director of Property determines that the base rent will exceed the market rent; and (C) the Designated Department shall provide notice to the Board if it has determined under Section 23.33 that it is appropriate to lease out City property for less than market value in order to serve a public purpose. The authorizations granted under this subsection (b)(3) shall only apply to Leases awarded on or before January 8, 2026 or approved under subsection (c).

(c) Approvals Under Charter Section 9.118. The Board of Supervisors hereby delegates authority to the Mayor to approve Designated Departments’ Contracts and Leases under Charter Sections 9.118(b) and 9.118(c), subject to all of the following conditions:

(1) A resolution seeking approval under Section 9.118 has been introduced at the Board of Supervisors on or before January 8, 2026;

(2) The resolution is signed by the Department Head and the Mayor and states why the Contract or Lease is necessary for a Core Initiative;

(3) The Contract or Lease does not require anticipated expenditures by the City and County of $25 million or more, or in the case of a modification or amendment of an existing Contract or Lease does not have an impact of $25 million or more;

(4) The Contract or Lease does not have a term of ten years or more, or in the case of an amendment or modification of an existing Contract or Lease does not extend the term by ten years or more, with the exception of (A) Leases of City property for affordable housing development which

shall not exceed 99 years, (B) loans for acquisition, development, construction, rehabilitation, or reconstruction of affordable housing; and (C) grants to subsidize rents or operations of an affordable housing development which shall not exceed 30 years;

(5) The Contract or Lease is substantially in the form of the applicable City templates for such Contracts or Leases, and incorporates Citystandard requirements related to matters such as insurance and indemnity following consultation with the City Attorney and Risk Manager;

(6) The Board of Supervisors has failed to act within 45 days after the date the introduced legislation was published by the Clerk of the Board. The 45-day period shall be tolled during the following periods: (A) any time while the resolution has been referred to the Planning Department for determination under the California Environmental Quality Act, until the Board has received said determination; and (B) while the Board is on regular recess. If the Board has failed to act within 45 days, the Mayor may then approve the Contract or Lease in writing.

(Added as Sec. 21B.2 by Ord. 61-19, File No. 190047, App. 4/4/2019, Eff. 5/5/2019, Retro. 3/1/2019; amended by Ord. 38-24, File No. 231129, App. 3/7/2024, Eff. 4/7/2024; redesignated and amended by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

(Former Sec. 21B.3 added by Ord. 61-19, File No. 190047, App. 4/4/2019, Eff. 5/5/2019, Retro. 3/1/2019; amended by Ord. 38-24, File No. 231129, App. 3/7/2024, Eff. 4/7/2024; redesignated as Sec. 21B.6 by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

Designated Departments shall have authority until January 8, 2026 to accept and expend gifts, grants from nongovernmental sources, services, bequests of money, and other donations, of up to $10 million, for purposes of supporting the City’s efforts on the Core Initiatives. The Controller is authorized to establish special funds as required to appropriately account for funds so received. Designated Departments shall annually report to the Board of Supervisors on such donations and expenditures [1]

(Added by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

(Former Sec. 21B.4 added by Ord. 61-19, File No. 190047, App. 4/4/2019, Eff. 5/5/2019, Retro. 3/1/2019; amended by Ord. 38-24, File No. 231129, App. 3/7/2024, Eff. 4/7/2024; redesignated as Sec. 21B.7 by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

CODIFICATION NOTE

1. So in Ord. 10-25.

As authorized by Administrative Code Section 3.18, the Controller may transfer appropriated funds within a department for the purpose of supporting the City’s work on the Core Initiatives. Until January 8, 2026, such transfers shall not be further limited by administrative requirements not required by Section 3.18 or the Charter.

(Added by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

(a) The Controller in consultation with the City Administrator shall have authority to adopt rules and regulations to effectuate the purposes of this Chapter 21B. By way of example but not limitation, these rules and regulations may govern the expedited approval of Contracts and Leases for Core Initiatives to ensure increased transparency and accountability, and additional public reporting of activities conducted under this Chapter 21B. Nothing in this subsection (a) shall limit the authority of the Controller or City Administrator to conduct regular audits or reviews of department activities.

(b) A Designated Department that enters into or amends a Contract or Lease for a Core Initiative under Section 21B.3 shall submit to the Board of Supervisors a report every three months that includes the following information for each such Contract or Lease that the department executed during the prior reporting period: the name of the party with whom the City has entered into the Contract or Lease; the services to be provided under the Contract; the amount of funds conveyed or received; the duration of the Contract or Lease; and any measurable outcomes of the Contract or Lease.

(Added as Sec. 21B.3 by Ord. 61-19, File No. 190047, App. 4/4/2019, Eff. 5/5/2019, Retro. 3/1/2019; amended by Ord. 38-24, File No. 231129, App. 3/7/2024, Eff. 4/7/2024; redesignated and amended by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)

This Chapter 21B shall expire by operation of law on May 5, 2029. Upon expiration of this Chapter 21B, the City Attorney is authorized to cause this Chapter to be removed from the Administrative Code.

(Added as Sec. 21B.4 by Ord. 61-19, File No. 190047, App. 4/4/2019, Eff. 5/5/2019, Retro. 3/1/2019; amended by Ord. 38-24, File No. 231129, App. 3/7/2024, Eff. 4/7/2024; redesignated and amended by Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025)