SF names new Department of Homelessness director as city faces $643 million deficit

SAN FRANCISCO (KGO) — San Francisco’s Mayor Daniel Lurie announced the appointment of a new executive director of the city’s Department of Homelessness and Supportive Housing, a move the city leaders say comes at a critical moment in addressing homelessness.

Mike Levine will take over the department as the current director, Shireen McSpadden, prepares to retire at the end of June. Levine is set to begin the role June 22.

Lurie said Levine brings extensive experience from Massachusetts, where he previously led the state’s Medicaid program, a $23 billion agency serving nearly two million people.

“He is an expert in connecting health care and homelessness services, and he has seen the power of integrating primary care, treatment and social supports to keep people healthy and housed,” Lurie said. “That’s the experience we need in San Francisco.”

San Francisco has set aside over $1 billion to tackle homelessness for the next two years this as the city is facing a multi-million-dollar budget deficit.

Levine’s appointment comes as findings from the most recent completed point-in-time count showed homelessness increased 7% between 2022 and 2024. The count identified over 8,000 people who are unhoused in the city, with close to 4,000 sheltered.

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Levine is coming in as the city is facing a $643 million budget deficit that could grow to $1 billion over the next five years, adding financial pressure to services aimed at addressing homelessness.

Levine acknowledged the challenges ahead and emphasized the importance of funding stability.

“To help more people move through the system towards stability and independence, financial sustainability will be a critical challenge in the years ahead,” Levine said. “I’m committed to aggressively pursuing all federal and state funding streams, especially medical, to support local programs that deliver results for San Franciscans. We cannot leave money on the table in times like these,” Levine said.

Sharky Laguana, commissioner for the SF Homelessness Oversight Commission, said Federal money will be key.

“We have, within the city of San Francisco, the former head of Medicaid for the U.S. and the former head of Medicaid for Massachusetts. I’m very hopeful that this will lead to us being able to more efficiently obtain federal support,” Laguana said.

For the 2025 to 2026 fiscal year, the Homelessness and Supportive Housing Department allocated 54% of its budget for housing programs.

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“Generally, for housing, particularly permanent supportive housing. You’re going to see, cost per resident in the range of, like $30,000 to $40,000 annually,” Laguana said. “For as long as they need housing.”

In a statement, HSH said, in part: “Length of stay depends on the type of permanent housing a person is in, and if it is a time-limited subsidy program or ongoing subsidy program.”

“I think the trend line that we were on, in terms of increasing our permanent supportive housing budget. I don’t think that we could continue that trend line,” Laguana said.

Jennifer Friedenbach, the executive director of the Coalition on Homelessness, said the new director should focus on prevention but also on expanding housing regardless of the deficit.

“Twelve to 14,000 households that are waiting for permanent supportive housing, right now. So, we have this massive waitlist, a huge need. So, scaling that back at this point is absolutely the wrong direction,” said Friedenbach. “I think focusing on expanding housing and really getting some, things in the pipeline, focusing on making sure that we are, doing prevention and keeping people in our homes, especially seniors and people with disabilities.

Levine said building local relationships will be a top priority once he begins the job.

“In my early months, you should expect to see me out in the community, meeting with providers, community members, frontline teams and, most importantly, HSHS clients,” he said. “Listening and learning and acting will be my top priority.”

Full HSH statement:
“Length of stay depends on the type of permanent housing a person is in, and if it is a time-limited subsidy program or ongoing subsidy program. Most supportive housing that we call PSH (site-based PSH and scattered site PSH) is ongoing with no defined end date. While living in PSH, the city works with clients to get them on a path to stability and independence outside of the Homelessness Response System.”