Randy Shaws hidden costs

This is a follow up to the previous post and details why Randy Shaw and Tenderloin Housing Clinic cannot handle it’s contracts with the City of San Francisco.

Tenderloin Housing Clinic is now the largest provider of housing for the homeless. His 15 converted SRO’s are now exclusively for CAAP (County Adult Assistance) and people on Social Security. Not the retired people on Social Security, but 20 and 30 year olds on Social Security. Randy Shaw has been selling this concept to the City of San Francisco for 20 years as a cheaper solution for housing the homeless, but there is a hidden cost that is not factored in, and is not considered when contracts are handed out, but should be

In a recent article, Randy Shaw stated – Thus, a contractor’s experience serving people with HIV/AIDS, or homeless seniors or veterans, or with chronic substance abuse, its experience using a harm reduction model, or its experience doing outreach to homeless people was deemed more critical than its
experience dealing with the population that would be served by the RFQ.

The CAAP population includes such sub-groups, but providing substance abuse services in a shelter involves a much different skill set from running a large SRO. HSA’s RFQ transformed Care Not Cash from a
housing program into a service program, enabling it to score those with service experience in shelters higher than applicants who had actually performed the proposed services.

This is exactly right and should be a very minimum requirement for RFQ proposals when dealing with the CAAP and SSI population. Providing substance abuse treatment is not what Randy Shaw does and he has resisted for years even the most rudimentary programs in his SRO’s such as Narcotics Anonymous. Randy Shaw and Tenderloin Housing Clinic is simply a property management group. They call themselves supportive housing but they only thing they can possibly offer is referrals to other groups that have the professional experience to handle the very thing that is needed by many of it’s clients, namely chronic substance abuse and psychiatric care.

San Francisco has been sold on the false promise that a cheaper contractor like Tenderloin Housing Clinic can solve the homeless problem. But because THC cannot handle, and is not equipped, and is not suitably trained to handle the severe problems of many of it’s clients, the result is mass evictions

One only has to look at THC’s own court records to find out exactly what happens when you house large numbers of homeless with untrained staff.

exhibit A


this describes in detail the type of incidents that happened with it’s own staff and is only part of the picture. A much larger number of incidents happen that is documented internally and never seen by the public or city officials because it is kept hidden. Only those that result in evictions are made public as required by law. An even larger number is never documented at all

exhibit B


Mass evictions. Because Randy Shaw cannot handle it’s homeless clients, huge numbers have been evicted over the years and are now living on the street, at the same time THC has been raising the rent and charging the city for it. This is why the mayors office can claim to house thousands of homeless people, and yet there are still large numbers of people living on the street. It’s because they are not the SAME people housed during that time span. It’s one big revolving door

exhibit C


Randy Shaw complains that service providers in emergency shelters are scored higher than THC. This is because the shelters have more trained staff and are better monitored than THC. In THC buildings, homless clients suddenly have much more freedom and are not monitored like they are in shelters, because THC is only a property management group. The result?

Nearly twice as many police, fire, and ambulance calls per month in a single THC SRO, than the largest emergency shelter in San Francisco. This is part of the hidden cost that is never factored into the budget, and yet, it can run into the millions. I would not be surprised if the total cost including fire, ambulance and police, including those that get evicted because THC cannot handle it, were to double the price of THC contracts, should that ever be considered as a factor

There is much more I could add to this, and might expand this post in the future, but for now, this is the basics. The hidden cost of Randy Shaw

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