The renovation of the former “horror show hotel,” above the Rickhouse bar at 250 Kearny Street, is nearly complete and the first of 130 formerly homeless veterans who will be renting rooms in the 136-room building on the edge of the Financial District are slated to start moving in within the next couple of weeks.
Residents will be expected to pay 30 percent of their adjusted income in rent for the rooms, each of which has a private bath and microwave. A large communal kitchen and on-site supportive services, including social workers and counselors, will be available to residents 24 hours a day.
The City is leasing the building for 10 years with a base rent of $1.9 million per year plus up to $200k in annual maintenance costs, with 74 percent of the rent covered by the U.S. Department of Housing and Urban Development (HUD). The rent will escalate at 2 percent per year and the city has an option to extend the lease for an additional five years.
Based on a survey in 2013, there were over 6,000 people living on the streets and in shelters in San Francisco, of which around 700 were veterans.