After Newsom Veto, San Francisco Moves to Steer City Funds to Drug‑Free Supportive Housing

Supervisor Matt Dorsey is introducing legislation to prohibit using San Francisco dollars to open new drug‑tolerant permanent supportive housing sites unless other funding rules require it. The proposal would formalize three models of supportive housing in the city: drug‑tolerant sites, drug‑free sites that ban illegal drug use, and recovery‑oriented housing aligned with HUD, SAMHSA and NARR standards. Dorsey will also seek a formal opinion from the state Attorney General, via the city attorney or district attorney, to clarify how state funds can support recovery housing and what enforcement is permissible. The plan calls for surveying roughly 9,000 residents in site‑based supportive housing by 2026 to gauge demand for each model, with findings due to the Board of Supervisors by Jan. 1, 2027. Gov. Gavin Newsom vetoed AB 255 citing duplicative oversight and costs, pointing to July state guidance that permits recovery housing, as Mayor Daniel Lurie and Assemblymember Matt Haney criticized the veto and advocates warned that redirecting limited local funds could reduce overall housing access.