By Clearinghouse CDFI
Housing for those who are experiencing homelessness is essential and in short supply. At the same time, Single Room Occupancy (SRO) properties for people experiencing homelessness sometimes carry negative connotations, despite their long-standing role in providing deeply affordable housing in urban communities.
But not all SROs are destined to be old, decrepit buildings, complete with many code violations. With the right parties involved, such properties can be successfully converted into help centers for the disenfranchised, guiding low-income individuals into stable situations.
This is the path the Kean Hotel followed through a partnership between Clearinghouse CDFI and an experienced SRO and hotel owner-operator, Mr. Dipak Patel. As a result, the former blighted building is today a vital part of the city’s recovery-focused interim housing programs.
The Challenge: From Film Star to Empty Eyesore
The Kean Hotel, at 1018-1024 Mission Street, was a five-story Edwardian-era residential hotel that opened in 1911. In addition to providing living quarters for residents, the hotel earned its 15 minutes of fame in the 1947 Humphrey Bogart movie, Dark Passage.
But over the years, the Kean lost its luster, operating as a low-cost SRO serving lower-income, homeless, and transient individuals. By the 2010s, the Kean had fallen into disuse and disrepair. City records classified the building as “in need of preservation,” while complaints and code violations detailing physical deterioration continued to multiply. Eventually, the Kean became vacant and posed safety and preservation challenges.
The Solution: An Experienced Sponsor and CCDFI
In 2022, experienced SRO residential hotel owner and operator and community leader Dipak Patel sought to acquire the vacant and blighted Kean Hotel and secure a master lease to provide affordable housing under the San Francisco Homeless Outreach Team (SFHOT)—an arm of the Department of Homelessness and Supportive Housing that connects vulnerable individuals with shelter and resources.
To execute his plan, Patel initially approached CCDFI for an acquisition loan, followed by a request for rehabilitation funding. Both loan applications, totaling over $8 million, were approved, allowing acquisition and comprehensive rehabilitation of the property. A comprehensive renovation of the property, including but not limited to adding bathrooms and kitchenettes to each unit, repairing the flooring, replacing drywall, and upgrading the HVAC system, was then completed as planned.
Patel also secured a master lease agreement with Westside Community Services, a nonprofit organization that provides community-based mental health and substance abuse services. This partnership ensures residents have access to on-site supportive services, including behavioral health, substance use recovery, and other stabilization resources.
The Results: Rundown No More
With help from Patel’s efforts and Clearinghouse CDFI’s financial assistance, the Kean Hotel today (now renamed the Eleanora Fagan Center) has 67 SRO units, offering transitional shelter for the extremely low-income population. The facility is also an essential part of the city’s recovery-focused interim housing programs that help clients combat addiction and homelessness.
While the building provides safe, clean, dignified shelter, Westside Community Services programs offer supportive services, helping low-income individuals transition into stable situations. Since the building’s renovation, it has supported thousands of individuals annually through interim housing and services
The center has also had a profound impact on the Mission District, revitalizing the neighborhood and enhancing safety for those who work and live there.
The Takeaway: SRO to Transitional Housing
The Kean Hotel to Eleanora Fagan Center story demonstrates a clear before-and-after narrative. Mr. Patel’s process transformed an empty, run-down former SRO into clean, safe transitional housing, helping those who wish to gain dignity and stability in their lives.
The project also aligns with Clearinghouse CDFI’s mission to finance community-first real estate and social infrastructure that expands access to stable housing and supportive services. Ultimately, the renovation provides a viable, replicable model for successfully renovating and preserving urban affordable housing.
To learn more about Clearinghouse CDFI, visit the website at www.ccdfi.com or email loaninquiries@ccdfi.com. For a quick response to your query, visit CDFILoan.com
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