San Francisco Local Operating Subsidy Program (LOSP)

As part of the City and County of San Francisco’s effort to address the needs of people who are experiencing homelessness, since 2006 the City has prioritized the development of non-profit owned and operated permanent supportive housing. While capital financing can be leveraged to build supportive housing for this population, stakeholders realize these units cannot be feasibly operated at the scale needed if they rely solely on insufficient federal or state operating subsidies. Through 15-year grant agreements with MOHCD, which are subject to annual appropriations by the Board of Supervisors, LOSP pays the difference between the cost of operating housing for homeless persons and all other sources of operating revenue for a given project, such as tenant rental payments and other operating subsidies. Tenant referrals are made through the City and County's Coordinated Entry System.