The city was able to acquire 151 new units for those who are homeless or transitioning into permanent housing.
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"Where there is a network of people who are there to provide wrap-around supportive services to get them back on their feet," added San Francisco Mayor London Breed.
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The Post Hotel, not far from Union Square, is the latest building that will be converted, providing 89 units of supportive housing for those leaving a shelter.
From supportive housing, the city's intention is to eventually offer them permanent housing. 62 units at the Abigail Hotel near San Francisco City Hall will come online in the Spring.
"Every single night, the city houses nearly 10,000 formally homeless people," revealed Jeff Kositsky, director of the Department of Homelessness and Supportive Housing.
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Included in that number are more than 3,800 units the city leases and more than 3,900 the city already owns, to house people who have made the transition. 1,200 more units are in the pipeline.
But transitioning from one stage to another doesn't happen as quickly as the city would like.
Mitch Orsaba was in supportive housing for seven years and now lives in permanent housing offering by the city.
"I love it, it's a home for me and I don't expect to move anytime soon," he told reporters who were touring the Abigail Hotel.
Residents will pay 30 percent of their income toward rent, with the city subsidizing the rest.
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Officials see the move as a quicker and less expensive option to create subsidized housing.
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