Dont have this access theyll have to go to Treasure Island that deadhead costs 20 minutes thats thousands of dollars. Okay. It is the same with amtrak and we didnt get a cost from them. And then the timeframe or the target for youre next steps and phillip can talk to that. Okay. So as far as timelines 95 percent we should have that ready in the next month or so mou with tjpa weve been talking with ac transit i think discussions are still going on in terms of agreeing it the mou costs and the big item is finalizing the caltrain lease theres discussions about what the lease rate ought to be i think those issues are ongoing with caltrain. Does ac transit have money. So, yeah in the presentation i mentioned weve done some calculations and deadhead costs well save up to 49 buses that will save the bs f. I dont hear youll commit to that financial obligation. Yes. You anticipate both the second and third items being done within this year. It will have to be done before we stack this to the board in september i mean its up to the board if the board wants to mitigate it in phase one there needs to be documents executed in september. In september. One of the things ive learned in talking with the staff exactly what the staging does for us i mean the first pull out you know the eater pull out in the afternoon thats not necessarily problem but the heaviest pull out the second pull out and if you dont have enough storage area for the second pull out because the busses havent come back then if effects your sdajz most people you cant use the bus for a pull out it didnt work for the second round we want to open that with Premium Service this is revving bart. If we could after the Board Meeting get confirmation about the day one need what is the least commitment to get more specificity about the day one need it will be helpful for the september meeting. How more specific . Well, that will be up toy to tell us to justify the needs for the spaces especially with the connection that the operations savings coming from the savings the deadhead with the 49 buses day one, if not i assume what is left whatever level of certainty not make it up but jifz the lease commitment and the 49 spaces for the day one would be helpful information. Okay. Where we at that concludes the business before you today. Thats what i was hoping were adjourned. Thank you [gavel] good morning everybody welcome to the San Francisco board of supervisors budget and finance subcommittee for wednesday, july 8 good morning everybody welcome to the San Francisco board of supervisors budget and finance subcommittee for wednesday, july 8, 2050. My name is mark r mark am sharing this management by Committee Vice chair kiddie payments and malik and john oliver. I want to thank the members of sfgtv covering this meeting as well as the clerk of the many window wanted any announcements please sounds electronic devices. Items acted on the july 14 board of supervisors agenda thank you. Please call item number one item number one providing certain special elections to be held in the city on november 3, 2015 for the purpose of committing to voters a proposition to incur bonds to the city not to exceed 310 million to finance the construction acquisition improvement week rotation reservation and repair of Affordable Housing improvements. Okay thank you. So colleagues, this is the ordinance about the resolution that we proved at the full board yesterday. I know kate hartley is here and i understand theres a small presentation you might have. When we actually go ahead and do that. Then we can take questions or comments. Good morning supervised. Kate hartley Deputy Director of the mass Mayors Office of housing and community development. I am very happy to be before you again today to discuss what i think we can agree is an excellent Affordable Housing bond measure for 310 million of general obligation of funds. As you have seen before this housing bond measure is part of a much larger Affordable Housing financing strategy that we have with the 310 three 10 million the total amount of funding that will have for housing in San Francisco over the next five years is over 1. 1 billion. With this funding we will be on track to meet the cities and mayors goal of 10,000 new Affordable Housing and rehabbed preserve Affordable Housing by 2020. Also, as weve discussed before, we propose three categories of use for the Affordable Housing fund. The first is Public Housing. You know that we are in a the midst of transforming every single Public Housing unit in the city of San Francisco, all which are in great need. We made excellent progress. We are embarking on sunnydale and potrero simkin lead by 2018, will have rehabilitated over 3500 units of Public Housing to the rental assistance demonstration program. We are proposing bond funds to accelerate potrero and sunnydale so that the tenant living there now to not have to continue to face the habitability problems they have over the long term. We are also proposing using the bond for low Income Housing. That is housing that typically, reaches households up to 60 and 80 of area Median Income to weave a twofold strategy. That is to build new Affordable Housing, leveraging low Income Housing tax credits, which is the most the greatest level of Housing Resources that available in the country. Also, to preserve Affordable Housing through the acquisition and relocation of existing rentcontrolled units, so we can not only stop displacement through ellis and nofault evictions, but also to stop the loss of Affordable Housing to vacancy control. Finally, we middle Income Housing. This is a category of housing that does not have the benefit of leverage federal or state funds. Its actually completely unfunded i typical Affordable Housing sources. But, we know the affordability gap in San Francisco has expanded so greatly that we do want to provide assistance to middle income residents of San Francisco. Heres a more detailed spending proposal for the bond funds. As you can see, we hope to apply approximately 80 million to the rehabilitation and acceleration of sunnydale and potrero. We also have a special low income category of housing for the mission area plan, so that we can apply 50 million of bond proceeds specifically to the mission which is been very heavily impacted by the affordability practice with the highest eviction rate in the city. These funds for the mission in particular, will be used for site acquisition and development, and the acquisition and preservation of existing rentcontrolled housing. The broader category of low Income Housing, again, it will be for new construction, acquisition and rehabbed. These funds will be reached households of two 120 of ami but the vast majority of those proceeds will go to households at 60 of area Median Income and below. Just as a reminder, for a family of four, that suddenly over 60,000 in gross income per year. Finally, for middle Income Housing, we will expand our down Payment Assistance Loan Program to help households purchase their own home. We want to reach out to teachers and keep them in the communities in which they work through the teacher next door program. This is a Successful Program that we previously funded and which has actually been fully utilized and would like to renew the funding for that program. We are proposing a new middle Income Rental Program so that we can reach, actually, what with Market Rate Developers and convert beyond inclusionary obligations marketrate units to middle income rental units. The majority of these funds will be used for households between 80 and 120 of area Median Income. We know that families who need larger bedrooms, two and three bedroom units, having affordability gap of two 150 of ami. So, we like to be apply those funds for family, large family units in the highest markets that we have in the city. Finally, we do have some expiring rental units that could convert to market. We want to prevent that from happening. That is approximately 80 million in total for the middle Income Rental Program. So, our grand total for the bond proceeds is three and one 10 million. It will be a high degree of accountability. Well be reporting quarterly on our production goals to the board of supervisors. For every development we do we have a census outreach requirement an obligation. We go through the citywide Loan Committee for every loan that we make. The board of supervisors, yourselves, does approve all bond issuances, which are part of the majority of the Housing Development that we fund. Finally, i just wanted to illustrate some of the great housing that come online recently. As examples of what we plan to do with this new housing bond. Weve got the housing for homeless families, homeless individuals,. We have a senior housing. Specialneeds housing. And Family Housing that is mixed income for both homeless households as well as households up to 60 of area Median Income. So, were very anxious to be before the voters, get their approval, and commence this work immediately. Thank you. Ms. Hartley. Colleagues, we also mr. Egan here one that has to present. He did an economic study on this bond as well. But from his hardly any questions at this point . Supervisor opelousas thank you for all your work on the housing bond. I am actually a cosponsor now and i know the bond had started at 250 and i originally had a measure that was 500 million. I started to come out from there to find some middle ground some happy were able to get their 310 million. Theres a lot of people who really feel that itll make a huge impact on their lives and thats why were doing it. Some excited that we have see found some consensus on the size of the bond. The details are still trying to work out and then just getting an understanding of our overall housing plan that i think is a good time to talk about it. Ive a few questions. We talked about accelerating projects at trailer out and sunnydale, and with this bond, ill get up close out all the projects. That you had redone. The housing that needs to get redone in these areas where they can help us get further along . When we actually going to be finishing all the projects , the housing projects that need to be renovated . Shifted so, so, we are on schedule to finish huddersfield and Alice Griffith in the next three years. Thatll be done by 28 and sunnydale and potrero are a sort of unique relative to those other projects because of their size. Together, their 1300 units. When the transformed this new make some income income will be 3300 units. So talk about huge developments. We are very airy cognizant of the need to protect the residence in place, so we have a complicated relocation temporary legal relocation. All president s of course will the right to return but in order to accommodate both the size of those 12 and programs, as well as the protections of the existing residents, we had buildout plans that actually took sunnydale out to 2035. That is too long. Because the Housing Conditions at sunnydale and its the same for potrero auto potrero is slightly smaller so not so long ago though, we dont want the tenants to have to stay in those units that long. So, with the 80 million in bond proceeds that were suggesting go to potrero and sunnydale, we can shorten that time im up significantly. And bring new units online for the existing residents faster. We would be able to close it out in five years . No. We will shorten the overall timeline. Thank you. What before 2035 . Yes. As fast as we can but the driving force in the schedule is really protection of existing resin. Shifted to have a specific date that youre trying to get to in terms of . 2025 would be an excellent date for us to finish. Shifted. Theres a lot of talk about looking at how the bond can serve all the different were many different geographic areas in San Francisco. I know theres been a commitment about 50 million, or up to 59, or 50 million for the mission. Ive been talking about ensuring that there are funds that come to neighborhoods that are in great need of not just housing about it but Economic Development. That actually building dense housing in commercial quarters and how to really build those funds. Economic development and Housing Development. What is happening in terms of how are looking at making sure these dollars are going to neighborhoods that are actually in need of them and thats also going to help the commercial and economic aspects of these neighborhoods . We as we want to be in every single district. We want to be in the high impact district especially. We want to be in districts where there is ease of transportation and, as you know, i housing does more than just provide housing. Include childcare centers. We have job training centers. We have a job hiring requirements. So i housing does produce great Economic Development. We want to work with the Planning Department and communities to identify areas that are in need with the full all the bond proceeds that were not focusing on one area only although there is a specific 50 milliondollar designation. I appreciate that. Theres a list ive seen and we actually mapped a list out and it shows that were a lot of the projects that are being planned are in the pipeline right now for Affordable Housing i might even before the bond, a concentrated in certain parts of San Francisco. Often parts of San Francisco where Developers Already are happening in my district we dont have any development happening. We are a district that is not the high concentration of wealth where thats actually spring that type of development. Theres a lot of amenities out there. So, look upon like this i would say, parts of the sunset and maybe richmond. By the commercial court or in excelsior that is onestory, two stories built up to go to 45 feet. One reason why we actually are kind of stagnant economically because we dont have the kind of basic people in the commercial court or that really enables the commercial corridor, but the way it can. So i been looking at and talking about, this bond can help to be spur the kind of Economic Development that we may not just need in housing. I want to make sure that, as im supporting this bond, i can see the screen to be some effort to build a sense of equity about how we share the proceeds that the voters approved with all parts of San Francisco. We need to have all parts of San Francisco to vote for this measure. So we want to see the benefits of the share. We agree supervisor avalos. I think theres been there certain reasons you see private moments i find development, where they are. If the city has land that such as the central freeway, for example. Those parcels were achieved those parcels were developed, received by the city in 2000. Theres been a steady buildout of those because of the central freeway demolition. But, with this new level of financing that we have, a new level of resources, we absolutely agree with you that we went to the more conference of analysis, reach districts and neighborhoods where there is great cost efficiency and thats going to be in neighborhoods that have available land thats not so coveted by market rates for example. So, i think that will be a Good Opportunity for us to really make an impact in neighborhoods that previously may have been underserved thank you. make sure the office was closed works closely with mine and Housing Development on the community site. My district where people are actually real Housing Developers people ashley try to build support for that and we have hundreds of people involved in that effort theres a couple projects that were looking at. I want make sure that we dont miss out on were able to pass this bond did not miss out on opportunities that would have the Funds Available to the bond were really excited about opportunities in your district thank you. Then, i did see before the end of the last pixel year that there was specific numbers that were provided for the different buckets that were looking at about housing, mission Affordable Housing, low Income Housing and middle Income Housing on your handout here, you dont have those numbers listed. I am assuming they have not changed . Its for Affordable Housing its 100 million. 50 million for the mission, 80 million you mentioned for Public Housing. Is there. Yes. If you look on this page their shame on me. Its right here. Youre right. I appreciate that. Lastly, the middle income rental, thats running as a Pilot Program, is that correct . Thats right shifted with a leagueleading 40 in terms of how we know that this Pilot Program is working, effective,. I think what criteria were using for its success we are very hopeful that will be successful although it is we look to new york which is a similar model and that had great success. Weve done our reach to the Market Rate Developers with whom will need to cooperate and order to convert market rate units to affordable units beyond any inclusionary requirements. We got a good response so far. Weve run many financial models. The measures of success are, number one, the number of units we bring online, and the cost efficiency so that we are really reaching households who are in need across thats reasonable to the city and doesnt force us to forego other that are more costeffective opportunities. Id like to see you throw in one other criteria, and that is looking for a lot of effort and public dollars from the city side, especially working in the private sector, private sector receive some financing from the private sector side. The banks and that. If theres a way of public dollars can actually leverage more favorable conditions for private developers to get banks as well, since there is this public subsidy, if theres some way we can engage people and the banks to be will to give us, provide some more favorable conditions for how we build housing in San Francisco. I think we are really at their mercy when it comes to the kind of Interest Rates that are put out get what the models are to be used for showing whether some is going profitability is big part of that and what the return is going to be. So, it is can use public dollars to leverage some kind of change even if its a small one. If we could start for how things operate in terms of their dancing of housing and not just affordable but housing in general. Yes. Were working hard to bring all parties together to get the best possible benefits for San Francisco, and we have some leverage by being able to take advantage of obligations the bank has and our developers , the Market Rate Developers are very interested in participating, especially with respect to our so we agree with your goal, sir thank you. Shifted supervisor moller supervisor moller i knew we have a very detailed and excellent report from our chief economist, mr. Egan coming up but i just had a couple of quick questions. You mentioned the acceleration of Public Housing in which i wrote and sunny day. You get a sense and one westside courts you said maybe transforming every single Public Housing unit get to know what, and website court, the smaller one closer to supervisor, and my district get into phase 2 development and will be completed by 2018 good wow. Thats great. Its a rehabilitation. I know with our hope six projects the displays a lot of people the new plan for Public Housing development is not to displace, but you mention the people be temporarily displaced good im wondering if you could just talk briefly about how we ensure that it doesnt push people out and they never come back . Well, the best examples are the relocation that happened in huddersfield and Alice Griffith. We were able to build new housing with the existing residents staying right on site, and those residents moved into the new housing. We demolish the housing that they vacated and it was a process which we are finishing up. Were quite happy that its underway and will soon be done and the residents there will have brandnew units. Sunnydale and potrero are more challenging in that respect because they dont have the land mass and the large vacancy rates that hunters of you had in terms of Ghost Hunters you had large vacancy when we began work there, but Alice Griffith had adjacent parcels the week goes on first that the Housing Authority we were able to purchase those and and assemble the site. So, it is trickier. What we are doing at potrero for example, is actually buying a parcel across the street. Thats going to be phase 1. Will build new. Will relocate there. We are planning, at a certain point, right now sunnydale and pajaro are 100 occupied. Once we really start construction, will start social have some attrition. That way we onsite relocation. Now, there may still be a need for temporary offsite relocation, and those plans are not at all settled. We want to do what is best for the residence in cooperation with the residents, and thats why this buildout plan is as long as it is. As you know, other localities and even San Francisco and some of the very early hope six deals did move everybody offsite and it wasnt a great return of tenants and we dont want that for sunnydale and retro i just want to agree with supervisor avalos on the need to look beyond the cities core for even towards the western neighborhoods for different projects. I like the idea of mixed income developments. Acquisition and rehab approaches. I wanted