Good afternoon. It is now 113. This is the regular meeting ocommission on Community Investment and infrastructure. The Agency Commission to San FranciscoRedevelopment Agency for tuesday august 18, 2015. Welcome to members of the public. Madam secretary can you call the first item thank you madam chair, the first order of business is item 1, roll call. Please respond when i call your name. Commissioner mondejar, here. Commissioner singh, here. Commissioner booustoes is absent. Commissioner rozauls, here. The next order of business is item 2, announcements. A, the next regularly scheduled meeting of september 1, 20s 15 is held at 1 p. M. In city hall in room 416. Prohibition of sound producing Electronic Devicesism be advises the ringing of and use of cell phones, pagers and similarly sound producing Electronic Devices are prohibited. The chair may order the removal from the meelting room of any persons sfraubl had ringing of or use of cell phones pagers or other Electronic Devices. C, announcement of time allotment for Public Comment. Please be adviceed a member of the public has up to 3 minutes to make pertinent Public Comment on each agenda item unless the Commission Adopts a shorter period t. Is strongly recommend member thofz public who wish to address the commission fill out a speaker card and submit the card to the commission secretary. The next order of business is item 3, report on actions taken as a previously closed session meeting if any. There are no reportable actions. The next order of business is item 4, matters of unfipshed business. 4 a aprubing Hunters Point ship Yard Community and kitchen final are location plan and nob process for replacement studio building Hunters PointShipyard Redevelopment project area discussion and action resolution 452015. Madam director. Thank you madam secretary. Good afternoon to the commission and good afternoon to the members of the public. Commissioners this item was continued from a previous meeting. As knroi among the Many Community benefits under the Hunters Point ship yard candle stick agreement is provide for new artist replacement facilities and xhilsh kitchen and this particular item before you is required under relocation law, there is a notice and plan you consider and approve. You have seen the scumatic dw d zine frafr both facilities. New artist replacement and the kitsch squn this is in furtherance of the previous action now that construction is under way at least under one component. With that i would like to ask [inaudible] assistant projoket manager to give background and walk you through the proposed item for your consideration. Thank you. Good afternoon president rosales and members. The item today is request to approve the Hunters Point shipyard [inaudible] released junethry, 2015 and also to approve the studio assignment process for relacement studio building. [inaudible] providing a overview and background [inaudible] details about the elements of the relocation plan z related rolocation obligation and also have chad [inaudible] here today to answer the questions. He is with the firm that is advising. Next i will ask marty mickee, she is the president for Ship Yard Trust for the arts to provide information. I want to point out that in the audience today are michael [inaudible] who can provide details around construction and timing of Building Activities on the shipyard and they sit in the third row. Ill start with general context. As knroi the shipyard is developed in 2 phases by lunar and includes lands on Hunters Point and candle stick [inaudible] this position of Development Agreement [inaudible] for the project for executed in 2003 for phase 1 and in 2010 for phase 2. The first phase of Development Underway on parcel a is mostly residential but other phases will includeophorous and retail. Also for the shipyard is a vibrant Arts District geographical center. The location is anchored by building 101 which is a existing building with 150 Artist Studios and new art est studio buildings and commercial kitchen will be developed in close proximity and will be part of the shipyard Arts District or arts complex. The general location you can see on the slide pretty much in the center of the shipyard and New Buildings are circleed on the map. The vision for the shipyard art district is a extension of the present Artist Community of nearly 300 artist there today. On this illustration you see the 7 buildings that artist are in. Approximately half of the artist in building 101 which is the building that is retained and the other half of the artist are in several buildings on partial b which is sth next partial of development. All existing buildings [inaudible] to make room for future housing and the artist with studio space will be accommodated to be constructed new Artist Studio building next to building 101. On thislide you can see the location of the future artist building next to the existing building 101. If you look that existing conditions of the site you see the new artist building will be relocated where building 110 currently is and therefore it requires the [inaudible] building 110 has several stud wroe spaces in the past but all the artist have been accommodated in vacant buildsings and others until the replacement studios are ready. The only remaining building is [inaudible] commercial kipen operator on the shipyard for many many year jz whos client base include 60 Small Businesses who use their facility to prepare their products. [inaudible] is treated as part of the Artist Community for location purposes and will be in the replacement kitchen located at the other end of building 101felt also replacement facilities are constructed by lunar in fulfillment of phase 2 [inaudible] requires all artist and [inaudible] all shipyard tenant be rolocated on site and not require today leave the shipyard. The dda also requires that relocation efforts allow for a smooth transition for the artist specifically allowing as many artist as possible to remain in their studios until the new artist building is available so allowing them to move directly. In the event that interim facilities are required the dda suggested [inaudible] current approach to rolocating is in full compliance. All artist in 104, [inaudible] without any interim accommodation squz all the building 110 artist have been temporarily accommodated, most in building 101 but retain the right tooz move into the new artist building. Also the commercial kipen is relocated in their separate relacement kitchen so we are in full compliance of all the requirements that were outlined in the dda. In addition to the great benefits that are provided by lunar, there are certain legal requirements that apply to relocation that occur as a result of projects that receive public funding as is the case. For the shipyard relocation, we have 2 legal frameworks, one is dda is the other is the federal uniform location [inaudible] ill refer to both of these laws collectively as relocation law. Relocation law calls out Certain Services [inaudible] also includes other notices such as notice of eligibility, notice to vacate, they are all required under rolocation law to make sure tenants effected by rolocation are kept informed. Rolocation law also calls out Advisory Services and moving expenses and appeals process through which the agreements can be addressed. All of this has been addressed in the relocation plan. Relocation planning started several years ago when we hired [inaudible] opc started with a survey of the existing facilities to inform linars [inaudible] started designing the buildings and [inaudible] with extensive input from the Artist Community and the scumatic design if the kitchen were approved in 2014 and the replacement Artist Studio were approved in may of 2014. At the time oof the design approval we informed the commission that a handful of artist may experience Financial Difficulties transitioning from the old space to the new space because of rent increase and [inaudible] to date [inaudible] raised 10 thousand dollars for the artist fund. There will be potential additional benefit frz some of these artist if they qualify as a sknz ill talk to that in more detail. There were u78 numerous check ins with the artist. H mostly in the form of artist meetings or workshops at the shipyard. [inaudible] also have regular check ins with [inaudible] the next step in the chain of relocation is the release of the draft relocation plan. [inaudible] june 2 to announce the june 3 plan release. [inaudible] 30 day Public Comment period in accordance with relocation law and in order to make it easiest for the artist to get answers for the questions [inaudible] june 11 at the shipyard where opc answered all the questions the artist had. Those questions as well as additional questions received in writing by the july 3 deadline are included in the final version of the relocation plan you have before you today and those questions and answers are included in attachment 5. I want to highlight the most important elementoffs the relocation plan. For example the plan establishes eligibility date for relocation assistance. The agreement would be june 2010 which is within the dda was executed but because there was turn over befween then and the relacement studio design that fs customize frd the artist at the shipyard at that point recollect oci extended the date to may 20, 20s 14 which is the date the replacement studio Building Design was approved. The relocation plan points out the [inaudible] begins with receiving notice of eligibility. [inaudible] artist who leave voluntarily not connected to the future relocation or development on the shipyard prior to receiving a notice of eligibility are giving up their space and relatement studio build{they are informed by the landlord before they move out. The relocation plan outlines [inaudible] which includes being available to answer questions, distributed information [inaudible] relfs to offset replacement spaces which is only needed if a artist decides to move off site. In that case they will still be eligible for relocation benefits to move into another studio, not the relacement building t is the artist choice to do that. As part of the Advisory Service the relocation consultant will be planning the actual move logistics. The relocation plan describes benefits that are available for artist and for the commercial kitchen [inaudible] oci will hire movers and will move the artist positions from the current build toog the new. If artist take advantage of that they will not incur out of pocket expenses. They have the choice to either conduct a self move or hire their own mover or specially mover in which case they go through the regular relocation benefits process which means submitted reimbursement. Businesses are eligible for additional benefits which are required to reestablish [inaudible] the expenses in the reestablishment category can total up to 25 thousand dollars and include increased rent cost for up to 2 years. So, as i mentioned before there are a hand full of artist who may experience financial heartship moving from the currents to the new space and some of them will qualify as businesses. If that is the case then the first 2 years of expenses or increased rent expenses will be covered through the relowication budge squt the funds that [inaudible] will kick in after year 2. In order to qualify as a business certain documents need to be provided including a business license and tax returns that show the business contributes to the income of the business, owner and opc will collect all this information to inform us which artist will qualify as a business and receive additional benefits. In addition to our request that the xhilsh approve the plan recollect we request approval of the process used to assign studios. The process is facilitated by star [inaudible] ill ask marty mu key who is kars president to speak to that process. Good afternoon commissioners. Marty mu key for shipyard trust to the arts. Just one correction rsh we have 15 thousand in our artist [inaudible] for had first year we have 2 year tooz fund raise covering the first year of the move for the artist at the new rent jaet the fund now is at 15 thousand dollars. The studio reassignment frauz, shipyard trust to the arts is operating as subcontractor to opc and wree pleased that we were brought into incorporated into this part thorf process because it is a place the artist have a say in their future. They are losing studios and paying more rent but at least they get they are losing their studios and paying more rent but at least they get a chance to paraticipate in where they end up in the new build{to many artist that is a big deal. So, basically there is 140 artist moving into 130 studios. Beyond the question of a doubt it is like herding cats to get this accomplished. We tried to design something simple and straight forward. The mechanism is the studio sizes are broken into Cluster Groups. For example, if you want a studio of 250 square feet you would fall into a group of other artist who want a similar studio and your group has a range of say 230260 and that is the Cluster Group. There are approximately 12 Cluster Group of the 140 artist and there are some excluded because of specially activities that we are doing so lets say there are 12 Cluster Groups of 120 artist, and what we are planning to do is bring those artist that we set up meetings and bring the artist together and showing them the model that lunar built of the new artist building and also we have documentation from ibi who is lunars architect so artist can look at the plan jz the model to tell exactly what studios are available in their group and then well let them sit down and talk to each other. If they can determine among themselves who wants what studio, then they pick their studio, if everyone agrees they sign a document and at the end of the day they get a studio they want. We hope they can reach a consensus. If they cant well use their siniority date and start oldest to newest and oldest picks first thmpt only alternative is have ocii say you are going in this space and you are going in this space. I feel this process gives some pow er to the artist, so that is it in a nut shell. It is very straight forward. For the Group Meetings we require 75 percent of the artist in the cluster are present fl the meeting. The issue was brought to the artist and voted by the artist, it wasnt a mandate set by star. We asked do you want the whole cluster to be there or are you willing to have 75 percent. We are willing to have aortartist represent them if they cant be there. We feel we have done everything we can to bring them into the process so they can choose and hope it goes by consensus. That is it in a nut shell. Questions . Thank you marty for describing the process. The first tenants to move is the nob [inaudible]. They will be relocated into the replacement kitchen as soon as the building is constructed. Most of the Kitchen Equipment will be new to allow for a transition with minimal business interruption. We recognize the number of Small Businesses that rely on [inaudible] will be impacted and we are working hard to insure any description will be as short as possible. Ocii lunar and [inaudible] has also commenced lease negotiations [inaudible] to insure [inaudible] continued success at the shipyard. And nob nab is a business and eligible to receive the rent off the payment up to 25 thousand as mentioned earlier. In a Chronological Order the next step is the following, [inaudible] receive a notice of eligibility and a 90 day notice to vacate with a november move date. Closer to the move, [inaudible] also receive as 30 day notice to haveicate which will have the same move date or adjusted date. Can only be a later date. As soon as the kitchen is complete lunar hires movers to rolocate the business. Lunar is open to a phased move [inaudible] inconvenient [inaudible] muchbed out of building 110, the building will be demaunshed to make room for the relacement Artist Studio building. For the artists, the next activ ty will be studio assignments. That will happen this year or it will start this year and then next year lunar will be buzzy constructing the relacement studio building and oci will continue to refine Management Structure for the artist complex. As soon as the building is completed which is expected to be in early 2017 the artist can move into the new building. This concludes my presentation and im available for questions. Thank you. Dwoo ehave any speaker cards . I do have one speaker card, mr. Scott madison. Yes, to the secretary. Good afternoon commissioners president loro rosales [inaudible] Scott Madison from [inaudible] here to say we support the adoption of relocation plan for the artist and eccollectic cookery. We cumind lunar team for involving and respond toog the design process over several years. Lunar [inaudible] seemless transfrigz us and our customers is greatly appreciated. The cookly opened in building 110 in 1984. We are the olds est largest food [inaudible] hundreds of businesses have begin in our facilities but we do not provide formal Technical Support but devote a great deal of time to prospect squz clients. [inaudible] running our own and make relfs to service providesers. We aim to retain clineants and help them succeed. Our pricing can be lower than lakachina. For customers with good prospects who have hit a rough patch we offer payment plans. We sometimes cancel debts. [inaudible] we look forward to having a beautiful new facilities but worried such good fortune may be the end of us. Our future and that of the clients are dependent on lease terms. [inaudible] as as is well known current shipyard rent is reasonable. We expect the rent to increase substantially. We do not now pay rent on common areas in 110. On the new kitchen we will pay ren on the entire building. We dont pay property taxes and [inaudible] maintenance is the landlereds responsibility. We may become responsible for that. The new facility is smaller than present. We worry paying higher rent for square foot adding taxes, insurance and 100 percent of maintenance with reduced income generating space will jeopardize our business. Our client operate on tight margins and the fees are effected by our rent. With so few businesses like [inaudible] most client price [inaudible] also operating on tight margins losing client could kill our business. [inaudible] provides a unique service and industry with minimal barriers other than finding a place to work. We ask for the commissions support for lease terms that allow [inaudible] in San Francisco. Thank you. What i handed out is information about the cookery operation and services for our clients and so on next i have marty mickey. Thank you. Marty mickey wither shatyard trust to the arts. I want to address 2 different issues than the studio relocation. First of all, i want to thank ocii management and staff and the staffer that is no longer here for including the artist in this process in a significant way. It has made a big 2ci6erance in a transition that the artist are lucky they are not losing their space, it is great rent but it is a change and more rent and inclusion of the artist has made it go much smootherment we hope as the Management Agreement gets under discussion we will be very much a part of that as we intend to submit a proposal with the founders. Secondly, the shipyard trust to had arts supports the cookery as part of the entire arts shipyard arts complex. We understand it is different business model, but the artist are receiving rents base ond the cost of sustaining the building, many of those artist are businesses and some are hobbyist or whatever, but Scott Madisons business, the only reason we are here today is because Scott Madison started shipyard trust to had arts many years ago as a advaes organization to save Small Business squz artist. The artist will be okay. Between subsidies we a able to rent and the fact is t is below market rent i think the artist will make it but want to make sure scott is a part of the community and make sure his business continues on and the clientele they serve that is so important. Thank you. Thank you. Caryn slater. Caryn slatejure also on the star board. I had a studio at the shipyard since i think 1997 and i have been following and involved in the reDevelopment Process for more than 10 years. I want to recognize the exceptional actions that have come about to preserve the affordable studio space for artist at the shipyard. It is extraordinary thing the city of San FranciscoRedevelopment Agency has done for the long term cultural and economic benefit of San Francisco really. A lot of that is a result of the perseverance of individuals at the shipyard as well as city staffers over the years, redevelopment staffers and especially have to talk about scott because high served on the cac board for more than 20 years dedicating personal time to insure the studios and businesses remain. The nob many Small Businesses and the production from current high rents in San Francisco is so important to maintain and i believe that was anticipated and recognized in all the agreements that were made with lunar and the city that the rents needed to remain below market in order to continue this community, which brings a lot to San Francisco. We hope both the artist and cooks can rely on the process to provide fair replacement spaces at reasonable rents as everybody has agreed to in all the documents that were approved. Thank you. Thank you. James gleesen. Good afternoon commission. My name is james gleezen and artist from parcel b. I just like to say that im very grateful to occi as well as lunar for the relocation plan. The meetings were very clear and informative and kept the artist informed as to what was going on. Also the new studio assignment, im grateful we are not being displaced in a time when a lot of artist are. Besides an accommodation that you provided for the move for the artist, there was also really really clear and easy to understand and we are looking forward to the move and the build of the new studio. The support and information given to all the artist is also very clear. The consideration for the input from the artists was also really important in the relocation of us and in conclusion, asyfected artist i respectfully ask for you to support the agenda item and ask you continue to keep the artist involved in the process going forward. Thank you. Thank you. Are there any others that would like to speak on item 4 a . Um, Public Comment is closed. Do my fellow commissioners have any questions or comments . Commissioner singhare all the studios completed so far . The studio building is not completed. What is under construction is the replacement kitsch squn as soon as the kitchen moves building 110 can be demaunshed and the new Artist Studio is built where the kitchen is. [inaudible] what happened in 2014 is the approval of the design. In april of 20 14 [inaudible] it is fully designed but construction is yet to start. When is it going to complete . Early 2017 do we have the list of who will get thewhich artist get the studio . Ya. All artist were heavily involved in the design of the building and 2 too aex tent where they could decide studio sizes, whether they want to increase or reduce the studio size and we have a list of artist who are eligible to move fl to the new building. Not all made the [inaudible] to take advant objectf the opportunity, but they have the right to move. What is the total number of artist who applied for the studio . So, at the time of the scumatic design, there were 140 artist squz they go in 130 studios. There are a few artist who share studios so that situation will be replicated in the new studios. If there are 2 or 3 artist in one studio now they have the same situation in the new building. We used to get a invitation from mr. Madison every year. You dont have any kind of those to see the Artist Studio and meet the artist and everything anymore . [inaudible] and they ceased to be able to fund those great events a great number of years ago. Thank you you are always welcome. Okay. I know all the artist were very very long time and they are very nice and very good people. I know mr. Madison for the last 20 years and so it is a very good project. I want to move this item. Okay. Do you have a comment . I have a few questions. Let me just verify, i think the last meeting that we had, there werewe are still at the 140 artist, right . There are a couple artist who have left the shipyard since, that is why i said in 2014 we had 140 so i know of a handful of artist who decided the time is right for them to leave. It had nuth toog do with the relocation so there will be a couple vacant studios. Those vacants studios will be open to new artist . Yes, as part of the conversation around management we are looking at policies for the new artist complex and one of the policies will be a policy to fill the building at initial lease up so knowing there will be vacant studios and there will be a priority how we will allow artist to get into the studios. It may be artist who are currently share for them to have individual studsios, it may be building 101 artist elect to move into the new building if there is remaining space, but there will be a policy well presents to you. They would be below market rent . The way that the rents are determined for the artist are basically to cover costs including operating, Administrative Expenses and capital receives and so that is being looked at for the entire building and the rents cover all the expenses it needs to be sustainable once they move to the new building the same arrangements are maintained . For example, [inaudible] and other expenses that are incured, is that sort of the same way as it is today . Hopefully not because at the moment there is hopefully not it means it will be better because well have a new building and well maintain it and make sure we have reserves that will suffice the keep the building up and running into had future. If you recall from my last presentation artist are in billings that are run down and may not have Running Water and no heat so moving to the replacement building is a up great and maintenance and upkeep is on [inaudible] to keep the beautiful building. I also want to commend star for raising money to support the artist expenses and all of that. Thank you. I am pleased to hear you raised more than 10 thousand and hopefully more because im sure there will be other expenses as the move happens. I just have a question about the commercial kitchen. So, there was a concern raised and there were others who spoke about making sure that scott will be able to afford to maintain the Current Business as far as costs or other expenses. How is that being the negotiation is not final yet . That is correct what are the actions that we are taking to make sure that entrepreneurs start out and do business in San Francisco . As i understand this is a inkbation type of commercial kitchen and eventually some of them will probably are going to be very profitable businesses. In the mean time we want to make sure Small Businesses are being supported, what are the actions we are taking. I agree [inaudible] cookery services are important and we acknowledge that and everyone is working to make sure the cookery continue tooz succeed on the shipyard as well as all their clients. The negotiations are [inaudible] they have just begun. Who is negotiating the lease is lunar in collaboration with ocii and it is mainly department of real estate involved in these conversations and they will be on going for the next few weeks and hopefully at the end come to a term sheet and rent number that will allow scott to move into the building. The building was built for the cookery and allow him to continue to operate and succeed at the shipyard. You will come back and update on the negotiations . Flaum parties concerned . It is very important for us to know because this is a business that serves the city and the entrepreneur climate especially during these times and i appreciate to also hear what is go ogen. Im sure something mutually benefit will come up since the [inaudible] and yourself so that would be a interest to me that at least a lot of these issues raised are mitigated and addressed we are happy to fulfill request thofz commission to be kept informed about what is going on with the lease conversations between [inaudible] cookery and lunar and ocii. One more clarification, there were very few artist left, right . We have 140, is it 130 and some are shared . At the time of the Building Design we had 140 artist. A few have since left the shipyard, 3 or 4. The number of studios in the new building are smaller than the number of artist because some artist share studios. Art is thriving in San Francisco. I hope the process of unanimous decisions works because i have been in many situations where unanimous or consensus doesnt work or at least there is a attempt to address this and i heard that there is a process to address if a consensus isnt met so appreciate the forsite in the planning. Thank you. I second the motion. All of my questions have been answered by the questions of my fellow commissioners. I just want to commend everyone because it sounds like what could have been a difficult process has not been so difficult. The studio assignment process is very democratic and the fact that folks got a opportunity to participate in that process hopefully insures the success so i cumind star in particular for participating and creating that process. Im happy to take the motionvote on the motion. Moved by commissioner singh and seconded by commissioner mondejar commissioner mondejar, yes. Commissioner singh, yes. Madam chair rosales, yes. I have 3 ayes and 1 absent. The resolution is adopted. Please call the next item. The next order of business is item 5, matters of new business consisting of consent and regular agenda. First the consent agenda. 5 a, approval of minutes for the regular meeting of june 30, 2015 and 5 b, approving a third amendment to the construction contract with azul works inc. For shipyard artist installation project. Contract number, hps, 0114, increasing the pract amount by 7430 dollars not to exceed [inaudible] and reserving a additional 10 thousand dollars as construction contingency for total authorized expenditure of 306, 430 and extending the date of final completion to september 30, 2015. Hunters Shipyard Redevelopment area resolution 492015. Madam chair. Yes, before we consider the motion can you tell me if we have speaker cards . When i speaki dont know if i am speaking louder than usual. Do we have speaker cards . I do not. Okay. Do i have any questions . I move to approve the consent agenda. It is moved by commissioner mand har and second by commissioner singh commissioner members please announce you vote when i call your name. Commissioner mondejar, yes. Commissioner singh, yes. Commissioner booustoes is absent. Madam chair rosales, yes. 3 ayes and1 absent. Consent agenda is adopted. Please call the next item. The next order of business is regular agenda. Item 5 c and 5 d, relate today transbay block 7 will be heard together but acted on separately. 5 c, approving revision to the scumatic design of 222 beale straight transbay block 7 to add 3 stories and 18 units in building a and 2 stories and 17 units in building b increasing the aggregate number of affordable units in the project from 84 to 119 plus 1 managers unit and making environmental findings pursuant to california Environment Quality act. Discussion and action resolution number 502015 and 5 d, authorizing a permanent Loan Agreement with mercy housing california 64 lp, a California Limited Partnership in the amounts of 25, 560 thousand which includes a previously approved predevelopment loan amount of 3, 382, 525 dollars for the construction of 119 Affordable Housing unit plus 1 managers unit at 222 beale street at transbay block 7 and adopting environmental findings pursuant to California Environmental quality act, transbay redevelopment project area. Discussion and action resolution 512015. Madam director. Thank you madam secretary. Commissioners, in transbays as you know, there are over 3400 residential units that will be built, of that 35 percent of those are over 1200 units are affordable. There are 5 mixed use mixed Income Development blocks under construction or completing constructions or active planning and development, so you are quite active and we are active with our stackholders in transbay and we are excited to bring before you the final stages. The permanent loan for transbay block 7. The Development Partner is mercy housing and always in our quest to build more faster with efficient cy for housing we are pleased to bridge before you this amended scumatic design where we can accommodate more Housing Units in a cost efficient manner with high quality design. I would like taask [inaudible] who is development specialalist to walk through the amended scumatic design and permanent gap loan for your consideration. Good afternoon chair rosales and commissioners. Im here to discuss the scumatic Design Update and permanent loan for transbay project comprised of 120s units. I would like to begin by orienting everyone to where transbay district is. The district is south across Market Street from the financial district and east of the south of market neighborhood. This shows the future location of Transbay Transit Center and oci future development in the transbay project area. As a reminder of the Key Highlights of the transbay project. The public owned unit are redeveloped [inaudible] 1200 will be affordable. These parcels feature over 2. 6 million square feet of new Office Development, 200 thousand of retail space, 9 acres of new parks including the Transbay Transit Center roof top park. The privately owned parcels will add more residential units recollect Office Development and retail space. We went over this the last time i was here 2 weeks ago but i would like to just explain the Development Process for the transpay district. So, the project was originally part of the blocks 6 and 7 Master Development in the transbay redevelopment pauject area. The transbay Redevelopment Area was adopted in 2005 with the purpose of redeveloping 10 acres including transbay blocks 6 and 7 that were owned by the state of california to generate funding to construct the new transbay transit sent squr meet the Affordable Housing requirements of Assembly Bill ab 812. Ab 812 is obligation that requires ocii to insure 35 percent of the new Housing Units built in the project area are affordable to and occupied by low income and moderate income house holds. The project areas impt lmentation agreement is a enforceable agreement that requires ocii to sell that property to third parties Development IncludingAffordable Housing. Next i would like to go over the histraff of project approval. July of 2011 the former Agency Issued request for proposal to design and Development High density mixed Income Project betrene block 6 and 7. In december of that year [inaudible] for the development of block 6 and 7 with team led by gallb and company as the market rate developer, mercy housing california as the non profit developer along with solomon [inaudible] as the lead architect of block 6 tower and santos pres caught associate a Small Business for affordable component of 6 and 7. April 16, the Commission Approved 6 and 7 disposition and Development Agreement with a dda. With gallman mercy regarding the sale of block 6 and design for block 6 and 7. Later that oct, gallb paid 30 million for the block 6 and [inaudible] which is lar slar to inclusionary housing fee and that Affordable Housing fee provided the entire ocii substy for block 6 and portion of block 6 affordable project. Construction of block 6 tower and affordable project began in 2014. The following spring the Commission Approved the permanent gap loan for the block 6 affordable component andconstruction on the affordable component began may of 2014. Finalally, last august the Commission Approved the first revision to the design oaf block 7 which increased unit counts to 77 units to 85 affordable units. As i mentioned before, gallb paid a housing fee of 24. 3 million for block 6 and 7, 14 million used to fund ocii subsidy of the podium building at block 6. The remaining 10. 3 million represents a portion of the subsidy for block 7 affordable project. Further more, 470 thousand dollars paid by gallub[inaudible] here on the screen we have the site plan for block 7. The block is bounding by a commercial biltd toog the north and block 6 is to the south. Beale street is to the east and fremont street is to the west. Today we are asking for your approval of a permanent loanf 25, 560 thousand for the transbay 7 affordable project. The source of the funds will be transbay developer fee squz job housejug linkage funds. July 31, 2015 the loun Committee Recommended approval of this request. We are also asking approval of the second design revision for transbay block 7. The project is 120 Unit Affordable Development which includes one manager unit. It comprising 5 thee 1 bedroom, 442 bedroom and 23, 3 bedroom. It features a community room, on site laundry, bike storage, open space and Childcare CenterService Residence and the larger transbay community. The project units are located in 3 buildings on the site. One, 8 Story Building at the corner of fremont and [inaudible] contains 43 affordable units. A second building located on beale and [inaudible] contains i62 units and there is a 4 story town House Building betwone freemont and beale that contains 15 units. On the screen sadis cription of the projects population, income restriction level and marketing preferences. 50 units rufordable to families earning 50 percent of ami. 69 units are restrict today families earning 60 percent of ami. To qualify for a unit in the development, a family of 4 can earn up to 61, 150 a year. First marketing preference is a certificate of preference and second is ellis act housing. Third preference is given to San Francisco residence and workers followed by members of the public. In addition to the ocii subsidy, the project will be financed with low Income Housing tax equity. Other finances sources include a private bank loan and 500 thousand dollar ectwae contribution. The ocii substy is 213 thousand dollars. [inaudible] and transbay jobs and linkage fees. So, for todays request, mercy is requesting a total loan of 25, 560 thousand to fund construction. This loan represents the gap financingthality enables to the Development Team. The Interest Rate is 3 percent but staff recommends enabling the exectev director and director of Mayors Office to increase to [inaudible] this loan is subject to a ground lease and have a term of 55 years. Next i would like to review the projects marketing requirements which are required by our loan docks. In section 6 of the Loan Agreement which was included as exhibit c in the packet, explains the borrowers market requirements and attachment t 1 and 2 detail the early outreach and marketing protocols. Mercy housing is required to provide early outreach and marketing plan one menth after construction commences. Rent or readyness training will be provided by access it housing consling agencies preapproved by the Mayors Office och housing and Community Development. The rental readyness training provide families with information on budgeting, credit counseling and application to apply for units along with the other items you seethen screen. I want to give a update on the projects professional conceltant. Mercys team performed exceptionally. To date the developer received 9thry sbe, 27 [inaudible] and 50 percent wbe for professional services consultants. All the Small Businesses enterprises are San Francisco firms. We also have bigraphical information about the key consultants. The project architect, landscape, architect, structural and electrical engineer, mechanical engineer are San Francisco firms operating between 20 and 30 plus years in the city. At this point i would thrike transtigez the scumatic Design Update. Early pricing of the initial design which utilized a wood frame showed spiking material cost which jeopardize the projects feasible. Mercy, design team and the contractor, exploreed design option that reduce project cost. They determined by switching the structural system from lumber to light gauge steel they can build higher. By switching to the prefabicating steel the design team was able to add extrastories. The scumatic design revision is consist wnt the developal control jz approved by the Transbay Citizens Advisory Committee in april this year. I would like to invite up Bruce Prescott to describe the key design changes of the updateed design proposal. Thank you ben. Commissioners. As ben mentioned, thearound this time last year we were before you with the previous design which had a 6 Story Building on one end and 5 on the other. At that time wood construction seemed to be the most affordable and efficient way to provide hoizing on this site. Those assumptions didnt play out so we went to the steel frame system called the [inaudible] structural system which allows a very efficient delivery up to about 8 stories that is also the height limit set on the site by the master plan for the transbay district so we decide today take advants objectf the height and bring in the 35 units which provides the High Foundation cost of the site overa larger number of units for a more efficient project. The main chaijers are in the 2 podium building. They are circled in red on the screen. The building facing freemont street, left side of the screen, we refer to that as building a and the buildings facing beale on the right side, each went from 5 to 6 story massing to 8 story. In the center, the master plan contemplated a pedestrian scale residential street on the block 6 side. The town housing of 3 to 4 stories were mirroring that scale so the clemen tinny street will main the pedestrian feel envisioned in the master plan and that is developed in the other blocks 8 and 9. The main changes in the ground floor plan brought about by the larger buildings is in building a, which is thelift side of the screen, we need a above ground transformer vault which takes up the space we would have liked to use for Community Use for the residence in the building, otherwise the plan is very much the same. We still have units on the ground floor where stoops and entries with the exception of the corner at [inaudible] all of climen tina street is activated by coming and going and building manager on site. Also on beale street on the ground floor of building b is the 4500 square foot space that will beb come the childcare sener. As you probably recall directly across beale street from the project is the transbay park so that connection between the childcare and the park was something we wanted to maintain. Look thath massing of buildings, this is building a facing freemont street. Freemont street is where the freeway ramp comes down so the frontage that faces that direction needs to be sound isolate{not as open as in other directions. The key element we want today bring is recognize the lower scale of freemont street so in both of the 2 podium buildings there is a visual break in the building at a height of 5 stories where there is ayou see in the diagram, the upper left of the screen, there is a break where the facade changes to recognize that reduced height and more pedestrian scale of freemont street. This was the design that was presented to you a year ago for building a facing freemont. Facade made up of corrugated panel and cement plaster. At this time the building was a 5 Story Building in a neighborhood of buildings that start at 8 and go up to 30 or 40 stories so the design intent is make it look big and feel like a proper member of the neighborhood. With the larger building that is less of a issue and the building is quite tall and by emphasizeing the verticality of the windose in the units we make it feel like it is proper member of the freemont street collection of buildsings so you have the charles swab building next door and Office Buildings to the south of the buildings is [inaudible] it will fit in with that praed of buildsings down the street. At the same time it steps down towards the climen tina with the canpy. This compares the previous buildings and what we have before you today with the 5 and 8 stories. For building b facing beale street, it faces on to the transbay park so we are making a much more open facade and glass in the units and bey windows that project to open the build toog the park, but again it also recognizes the more pedestrian scale of climen tina as it turns the corner of the south side of the site. The previously approved design for this building had a big bey windowen the corner and that was the signature element with the newer buildings that is 3 stories taller we are going more towards reducing the scale at the corner to recognize the climen hp tina street pedestrian way and as the building comes to beale street it step z up and the tall bey windows emphasize the size. The ground floor along beale street is open with a glass facade into the chile care center and we are designing with the childcare specialist a screen wall that goes in front of the glass so there is a mix of daylight and privacy for the kids in their classrooms. This is the diagram matic comparison of what fsh approved on the left and what we are currently proposing on the right. Climentinny street, the town House Building is changed from wood to steel frame thrks form and araimpment of the building remains the same inside. Has a residential scale with small scale bey windows, horizontal siding and the generous stoops that ground level. This is the diagrammatic version of the climen tinny street facade with the podium buildings. You see where we carved bal cunies and added cornices as the climen tina street frontsagism we are working with south of market chaild care for design thrf Childcare Center, which are not part of the scumatic design but ill show a couple images so you can get a idea where we are with that bauds i know it is a important component of this particular project. We are collaborating with zpz partners from italy who are experts in pedagogy [inaudible] that pedagogy is a key part of south of market childcares approach to childcare and the main feature in terms of architecture is the building should not have corridors but be a greeping of classrooms around a piazza like a city. That is the design plan that is here on the screen. The sort of irregular space in the middle is the pipotsa and flows from beale street that is used by the kids so that is the central Meeting Place and coming and going from classroom jz the Community Space is where the kids eat lunch. It makes a sitee out of the Childcare Center. We are just getting through scumatic design of this space as we are in the building as a whole and integrating as we go so that on the left side here is one of the classrooms with a view to the garden you see a feature in the middle of the classroom is a steel brace that makes this project work. These are big prefabicated steel frames that go up quickly and therefore help keep the Construction Costs down and working with the designers in italy we made them a feature in the Childcare Center itself so it they are Something Interesting for the kids to see. On the right hand side the lower imsubject the central piazza with the lunch table and theater stage and that is the central part of the Childcare Center. Then well introduce the operator of the Childcare Center in case you have questions about the operations. With that ill turn it back over to ben. Thank you, bruce. At this point i would like to switch gears and discuss parking at block 7. Funding [inaudible] stemming from the disaleutian rom o thf Redevelopment Agency require the develop programs for block 6 and 7 be amended to make the affordable component financially feasible. As such, parking was reduced for both or modified for the market rate and affordable component of block 6 and 7. Adding more parking space frz the residential of 6 and 7 would have diverted scare funds for additional affordable units. So, gall iband company has made sure that block 6, there is a underground parking garage under block 6 that includes 3 car share Spaces Available to all the residence of block 6 and 7 including the affordable components. Also, back in april of twen 14, the Commission Approved the block 6 permanent gap loan and air rights lease so that development could move forward. As part of those approvals, the xhilsh approved reduction in the number of Parking Spaces for affordable component of block 6 and 7. At the time the number of designated affordable spaces was reduced from 13 spaces reserved for block 6. Mercy requested in the Commission Approved the change to preserve fund frg the development of affordable units at block 6 and 7 and given the transbay district is so rich with transitopings the block 7 affordable project will not have dedicating parking in the underground garage. The temporary transbay transit terminal which is the future site of the park, is across the street from building b and right now it has no less than 10 muni lines running in and out of the temporary terminal. Additional 10 muni line are accessible on Market Street jooust a few blocks north. Ocii staff worked with muni to reroute the number 10 bus line so it now has stops within a block of the safe way Grocery Store in mission bay north and within 2 blocks of the sorth of market trader joes. Mercy housing has other properties in the city with no parking and they do not consider parking necessary to serve the needs of the residence. The transit options in transbay exceed those available in most of mercys other Housing Developments. Mercy staff expected based on experience in addition to mass transit block 7 house hold will utilize transit options including a variety of ride and car share services. Next i would like to provide an update of retail development. Gall ibmarket rate tower on block 6 include 9 thousand square feet of retail space. Glaulb hired Colliers International which a nrlsh real estate broker. Gallb is committed to attracting xhrjs tenants that serve all the residence of block 6 and 7 as well as the larger transbay district. The block 6 affordable podium building includes about 2100 square feet of retail space and mercy secured fillphil s coffee. Block 7 includes a 4 thousand square foot childcare space as well as programs Community Space at the ground floor of building 7 a. Staff will be back in front of you this winner to approve the ground lease for the block 7 affordable project. Mercy does intend or hope toog begin construction of the project in spring och next year and the Development Team must submit early outreach and marketing plan within a month of construction commencement. Construction is anticipated to wrap up in the fall of 2017 and resident move ins begin that summer. With that that concludes my presentation. [inaudible] the south of market childcare and Mayors Office of housing and Community Development. From mercy we have [inaudible] director of real estate development. William hoe, the senior project manager. Sister patsy harny, a Resident Services coordinator. [inaudible] we have bruce who presented earlier. Cahill contractors we have guy, [inaudible] south of market chile care center we have [inaudible] the exectev director and [inaudible] their coo. From the Mayors Office of housing and Community Development we have maria [inaudible] just in case there are questions about how the lease of block 6 is going. Lastly, we have peter heartman who is the chair of the transbay cac here. Do we have any speaker cards . Anyone who would like to speak on items 5 c or 5 d . Good afternoon. My name is peter heartman. Im chairman of the transbay cac and have been a member of it since [inaudible] i served on the develop Selection Panel for this particular project in 2011 as well. I just want to tell you that as you already heard, wethe cac, the project sponsors brought the change for the amended design with the additional affordable units to rcac meeting in april and unanimously approved it. We thought this was a great change. I think first of all, any time we get more affordable units in the city in this projsqueckt the city, that is great and we were very happy to see that change. Also, we think the change from wood frame to steel frame is a positive one in terms of it is better and more durable construction and technology. I think it is the architectsit fits in better. The Higher Heights fit into the neighborhood better and think will result in a better project so think you have a win win win here for the project and urge you to support it. Thank you thank you. I donts have anymore speaker cards. No more speaker cards, okay. Commissioners, questions . Commissioner singh. I have a couple questions. The loan to mercy housing [inaudible] interest is 3 percent . Correct, as planned, yes. 55 year loan . Correct. When you a permanent loan it means it is attached or linked you could say to the ground lease so the purpose here is to maintain permanent affordability of the project. The loan is tied to the parcel and it does get paid off over time but not in the entirety and that is to help protect the affordability of the deal. [inaudible] it is rezidial reset loan so it comes from sur plus cash. People pay monthly or yearly . At the end of each year there is a calculation of the sur plus cash. The typical walter fall works so 1 3 of the sur plus cash go tooz the developer and 2 3 to ocii. Do knroi how much loan they have from us, total loan we have all the projects to in the past . How many loans just with mercy housing . That i dont know off the top of my head. Anybody knows . We can get that data for you. [inaudible] for a number of years, so i just want to know how being paid. We can follow up covering the last 10 years should cover the request. Okay. What is the difference between wood frame and steel frame . It is better as you actually heard peter just say, it actually protect the dur ability of the building. We are in a earthquake zone. I want to know it does 2 things, it allowstuse take the bulk massing of the building higher which gets the additional 35 units and also does make for a more stout and longer lasting building. Maintenance is typically easier. The other question i have is parking. What is free car share . To be very frank, transbay 7, the project in front of you know has no dedicating parking in the transbay 6 underground parking garage so there are 3 dedicated care share spaces gallb commit today having in the garage available to the affordsal residence of 6 and 7. How many total number of parking is there . In the entire garage i might turn to shane on that, but think is somewhere around 110 i believe for the market rate component and another 13 for the block 6 affordable units and there is the 3 car share spaces. I believe that is correct. I suppose 2 people want the same [inaudible] who gets it first . 3 people are there, everybody has toim satisfied parking is not enough. It might be best to invite the developers here up at this time to have them speak to this issue and would like to invite bark p barbara [inaudible] up. Good afternoon commissioners. [inaudible] director of Housing Development. In response to your question commissioner singh, we have rented up very little or no parking including 10th and mission, 1100 and ocean and the Transbay Development at block 6 and while everyone would love parking, what we have found is that our families are not turning down unit because of lack of parking. We have huge demand for these precious units as evidence of block 6 had 5 thousand applicants for 70 units. What we are learning is families are making it work and doing Creative Things that a lot of us do that may not have cars, they Work Together to share a uber or cab somewhere or we do things like, we have a electronic rez Dent Services buildboard in the development and may talk about unit 101 is doing a cost corun, does someone want to join . We are learning as we do more developers there are creative ways to utilize the Resident Services plan to help families lead high quality lives without owning cars. I dont know how [inaudible] if they want to go somewhere and can not go. I dont think it is a quality of life. The one other thing just to piggy back what ben said about car share in the market rate garage is that we have been working with both car share and zip car to get reduced membership fees and hourly rates for our families and so that is another incentive because there will be 3 car share spots as well as i believe more care share scattered throughout the transbay project area. I have other question. You are 9 thousand square feet of [inaudible] that is in the market rate component of [inaudible] whatever. You know, the place is there. What kind of [inaudible] you are looking for what kind of i [inaudible] they are at the early stages, but what im informed they are looking at is they talk to Financial Institution jz food Service Options and then just other local neighborhood serving retail, but they are at the early onset of determining what will be there. I prefer a grocery shop where the people lives. [inaudible] i would also like to point out that copal weeks back we brought the transbay 8 project in front of the commission and that block is literally directly across the street from transbay 6 and 7 and they are currently related Companies Looking into providing a large scale grocer at that site. Fingers crossed if all goes well at that site there would be a grocer in very close proximity to block 6 and 7. Commissioner singh, under the directors report ill talk about related tndc efforts to attract a Grocery Store across the street from this development that is under your consideration. Thank you. Great. Thank you. All very good questions. I hate to talk about parking, but i know that you responded to this. Im looking at transblock 7 and there are 23, 3 bedroom units and so that means 23 families i would assume that will have 2 to 4 kids maybe and to have no parking is just as commissioner singh said, will impact the quality of life of these families. Then you have a 40 slot childcare facility, so like 40 families approximately will be using this, which is great by the way there is a childcare facility, that is wonderful, but we do have affordable units but the cost of living will impact because some of these families may have to rent parking and then earlier you said there is 125 Parking Spaces for market rate units, which im assumingnot sure if these are rentals, the units are rentals or Home Ownership in the area and i bow know there is a push to use transit but im wondering if the designers of this building have families and small kids and that is a consideration because especially for women. Women who have kids and trying to balance their work and personal lives, so i have a veryim very concerned that there is noti understand that i cant remember her name, there is a trend towards not using cars or sharing. We are in a sharing economy and think that is great, but at the same time the quality of life is impacted. It is all most discriminatory for affordable home owners or renters to not have access to parking. I understand the car share, is that something for reduced fees, is that something we can subsidize because i subscribe to zip car and car share and that is quite a fee to use. The membership has gone up through years, the renting a car has gone up through the years. I know i live in the south of market, when i move parking was 75 dollars and now it is 500 dollars. You know where im going here . It is just to me something that i wish i think we need to seriously look into this especially for those who areif we are building 2 or 3 bedroom units we need to think of families z the hardship and raising families and having to pay for all these things because you are forced to pay for market rate Parking Spaces eventually. That is a concern and i dont know what the answer to that is, but maybe for the subsidized car share we can further subsidize that, maybe cover that expense for especially for those rentsing 2 or 3 bedroom units with kids because it is a safety issue at the same time. You were saying the grocery that is being planned, i dont know which Grocery Store is going to be there and from the last time i think we were talking about a high end Grocery Store, which again will force those who are renters of affordable units to be forced to go to costco, which is nearby. It is hardship. There are 6 thousand applicants for the units which is great, but at the same time are we realistically looking at what we are doing for the families so they dont leave San Francisco and this is what this commission is about, to retain families to stay in San Francisco to help them live a better life. So, those are my concerns and what are we doing to address this issue . Yp dont know if there is a answer to this, but i would like to encourage our staff, you and our developers to really think about this especially now that we have increased affordable units. I was imagining me what it was like as a single mom and the difficulty of having a quality of life and be able to meet the requirements of living in San Francisco. I feel like we as a commission have the responsibilities to think about this and look into the future. So this is more like a comment than a question, but if you have some responses to this and actions that we are taking. One of the things i can say about this particular project is that with guidance from ocii Housing Development staff, mercy went out and applied for what is called, [inaudible] funds. Affordable housing and Sustainable Community funding, sometimes referred to cap and trade money at the state level. One of the requirements of going for the funding dollars is a limiting of parking and one of the things that made this project so competitive but it didnt within, it narrowly lost is it was in such a transit rich district. Staff is continuing to push and support for the project to get that funding in this fiscal year from the state and if it was awarded we would have to maintain at this parking level, but i absolutely understand your commentss and concerns how it will effect families. So, can we have somebody from mta here and maybe we can talk about what is being planned for the next few years to address transit issues . You say transit rich, what does it mean . Sally [inaudible] direct frr the record. We have been in consultation with staff from mta because this is a topic of concern. We have talked about mta staff come here and describe the various constraints that dense urban environment like the transbay environment faces in terms of providing amenities to redense and the constraints that come with parking. Parking means a spot to park your car and generates quilet a bit of traffic in the streets and that is something mta has been looking at to understand that relationship between Parking Spaces, Traffic Volume squz the number of residence in the new neighborhood and i think they can be helpful in gibbing that hire level view of how it fitsd together we tried to pull together nrfgz. It is still in the early phases but hope we can bring that to you this year and give you more information because it is a fairly complex problem that a neighborhood like transbay is facing. It is transit rich. Are we going to take the few dollars we have and turning it towards creating more affordable units or parking space squz what are the consequences of each of the choice jz that is what we look at as we evaluate the projects and we can provide information on how we come to those recommendations. The marketing piece, i know i see mrs. [inaudible] could you address that . Is it time to do that . What we are doing . Good afternoon commissioners maria [inaudible] Mayors Office of housing and Community Development. Marketing. So, i can tell you what is happening at 280 beale. When can t comes to us, we stop saying block 7, 6. We go to the address. 280 beale, over 5 thousand people applied, 5350 all most. We have 704 names of those 5350 and first i want to say is mercy has been very very cooperative in our efforts to standardize the lottery procedures we have told you over time we are trying to make sure all or Development Partners are using the same procedures so people are not confused about what happens when i go here and go over there. Mercy is great and really put a lot of input into the creation of dahlia and a single application that people can fill out. This was the old fashion way with paper application squz we are moving towards [inaudible] it is with the Development Team that is putting it all together for us and hopefully well have that ready for testing in november so it is moving along. We had right now they signed 27 leases at 280 beale and they should be at 100 percent occupancy by the end of september. They are on track and of those 5349 applicants we had 12 cop holders. That is pretty sweet. 5 of them are already approved and are in and 1 is in the process. We anticipate that half of them will be housed. We had a few withdrawals, a few people changed their mind. Out of the 12, only 3 were not qualified pin one way or another so that is a real improvement and we are still work wg access to housing to help people get approved. We had one ellis act Housing Preference certificate holder and they will be moving in. It is mercys first ellis act Housing Preference person so it nice. All in all, i think that our whole process at this project was very smooth as it could be and still is. It is moving forward. We hope that block 7 will be the same. Any other questions about marketing or . Just a question on the 12 cop, are these for 1 bedroom or 2 bedroom units . I dont have that information. Are there families in the 12 . 3 were not qualified, so the 9 . At the end of september well get a reportnot from dahlia. It is the Old Fashioned way until then, but well get a report on all the demographics of all the 69 households housed including the cop holder so ill have that information for you. At the last Commission Meeting i asked questions on the ellis act Housing Preference program, how is it going and how many folks are qualified and it seem ded based on my memory on the pull of eligible ellis act evicted tenantsi dont know how many of those could be eligible for this program because i know there is a 5 year for disabled tenants, in my recollection of the budget Analyst Report is in the thousands of those evicted because of ellis ablth and the report from staff at the last Commission Meeting is in the neighborhood of under 40 is my recollection or under 50. We did ask the question and hopefully your folks will be able to tell us more about how is that Program Going . Are the partners or Community BasedOrganization Partners doing the heavy lift they should be doing because it seems to me the mayor office of housing cant be everywhere. You depend on the network oaf Community Based organizations to be the channel of where folks know about it and apply for it. I want to make sure we focus on that because we recommend a neighborhood preference policy and the south of market is the area that is significantly impacted by ellis act evictions based on my recollection of the budgetanalist report. In a nut shelli cant have exact numbers now, but the ellis act Housing Preference, we have over 150 folks with certificates and evictions are high for all regions, not just ellis act because of the high market we are in and along with the neighborhood preference, the there sadis cushion of expanding the ellis act Housing Preference program to include other displaced tenants andbecause there are thousands of people that revicted and if the pool is so small of people that are actually qualifying for the program that we may need to broaden it to be able to reach more folks that are being displaced. That is part of the discussion with neighborhood preference so well keep you posted how that goes. We dont have income information on people who are evicted so we assume there are a vast mur jort of people who need the housing and it true. We are seeing also with the ellis act Housing Preference folks that are at a higher income and still within below 120s percent income, they are purchasing vmr units which is great because they dont have to worry about anybody kicking them out m