San Mateo County scopes hotel purchase in Millbrae to create new housing

Before the closed session discussion was had, some residents implored the board to not purchase the hotel. Some argued the site provides valuable tax revenue that goes toward improving the small city’s infrastructure. And others worried the site would be unsafe near residential areas and should instead be established near medical facilities and other amenities.

Housing advocates, neighbors and at least one elected spoke out in favor of the county purchasing and repurposing the site, arguing that temporary housing would be a first step toward stabilizing lives.

“Housing stability only benefits our neighbors, our community and our county,” said Jess Hudson, a Millbrae resident who lives across the street from the La Quinta Inn. “I have zero concerns for my safety, or my children’s safety or my neighbor’s safety.”

The county has purchased five hotels in total and transformed them into both permanent and temporary housing with support from the state’s Homekey Project. The county has received about $145 million through the program, which also helped to build out the county’s recently opened navigation center in Redwood City.

The housing options are meant to help the county reach its goal of functional zero, meaning homelessness would be rare, brief and never chronic. According to the county’s One Day Homeless Count conducted last February, officials estimated about 1,092 people were sleeping on the street, in tents or in vehicles, a 20% increase from the previous count conducted in 2019. The number of those in shelters also grew, up to 716 from 611.

No formal decision has been made on the matter but the board did approve a measure granting permission for staff to apply for two new Homekey Project grants, one for $35 million and another for about $27.6 million.

The measures were listed in the consent calendar and no discussion was had on the items. Neither listed the addresses of the hotels the funds would go toward buying but did list the nonprofit Episcopal Community Services of San Francisco as a co-applicant. The organization would “acquire, rehabilitate, manage, operate and provide supportive services” at whatever site or sites are selected.

The county would potentially contribute about $21.6 million in matching funds toward the hotels if awarded the state grants, not accounting for rental subsidies through the county’s housing voucher program.

Without speaking directly about the La Quinta Inn, County Executive Officer Mike Callagy said after the meeting that whatever hotels or sites the county does acquire, they’d be looking to turn the sites into permanent housing with wraparound services rather than transitional housing sites.

The model, he said, is a quicker and more efficient way of creating affordable housing than building a project from the ground up. If the grants come through, the county would be able to provide at least 150 people with new homes, he said without specifying the sites.

Before the sites are repurposed, Callagy said the county will hold community meetings to inform the public and field questions. Contracts with service providers will also need to be finalized, he said.

“This is a way we can help people quickly and efficiently. Wherever they land they’re going to be community members and some of those may be family units. They’ll be shopping in that area, they’ll be working in that area, they’ll be part of the community,” Callagy said. “We want to have people with a path out of those interim housing and shelters. We want people to understand if you enter the shelter system or interim housing, you’ll be able to avail yourself of services and a path to permanent housing and someplace you can call home.”

Note to readers: The first quote in this story was removed because the speaker was referring to a different site.