Overview
- Mayor Daniel Lurie announced the plan on Monday, August 31, 2026, directing the Department of Homelessness and Supportive Housing to reopen and reaward its portfolio of contracts over a multi-year effort.
- HSH plans phased, competitive procurements through May 2029 and will seek input from service providers, advocates and people with lived experience before finalizing outcome measures and payment terms.
- Officials say most current contracts pay based on spending rather than client results and that future agreements will tie funding to measurable outcomes, building on a prior performance-linked pilot at the RESET sobering center.
- Nonprofit providers and advocacy groups say they were caught off guard and warn competitive rebidding could disrupt services or reduce available housing units for the more than 12,000 households on waiting lists.
- City leaders point to audits, Chronicle investigations and criminal charges involving some nonprofits as the rationale for reform, and they say the move could shift money away from ineffective programs toward those that show clear impact.