Supervisors board of agenda, otherwise stated. Thank you, madame clerk. Call items one, two, and three together. Yes. Items number one, two, and three are ordinances amending the general code and zoning map to add the 1629 Market Street special use district and approving a Development Agreement with stratta brady l. L. C. With various Public Benefits including open spaces in support of Affordable Housing and making appropriate findings. Thank you. This project has been a long time in coming and we are delighted that it has got ton the board of supervisors. I want to thank the mayor and his staff, of course, the Plumbers Union local 38 and the cosponsors of this legislation, supervisors kim and sheehy. I want to thank the folks from stratta for the briefing that they gave me together with city staff a few weeks ago. And thank mr. Sullivan for all of his work on this project. That is going to bring Affordable Housing and Community Benefitss to this area of mid market. And with that, should we start with somebody from the Planning Department or ms. Topier who wants to start . Richard . Good afternoon, supervisors. Department staff. The item before you is for the project approvals for 1629 Market Street. On october 19, the Planning Commission considered a series of actions in support of the project at 1629. Included in their actions were recommendations for approval of a general plan amendment to the market activity plan, to amend the plan in support of the project that is before you. A series of planning code text amendments and zoning map amendment to basically realign the zoning map toward new parcels that will be created as part of the project. As well as to increase the height limit for one of the parcels in support of the Affordable Housing parcel for the associated project and to establish the 1629 Market Street s. U. D. In addition, the Planning Commission considered a recommendation of approval for the Development Agreement as well as the conditional use authorization and planned unit, all of which were affirmed by the Planning Commission. Id like to introduce Michael Cohen, the project sponsor, to provide information on the project. Mr. Cullen, good afternoon. Good afternoon, supervise sorts. For the record, Michael Cohen, im a principal developer of this project. Well throw up a very quick presentation for you. Yep. Thank you. So, our site is a 2. 25acre site which is on the eastern edge of the market octavia plan area near van ness. The property is owned by a local 38 plumber and Pipefitters Union and their Pension Trust fund in stratta has a 99year lease of the property. Current uses on the site, moving sort of east to west, Market Street include the Civic Center Hotel, which is an aged s. R. O. , local 38 hall, a small retail frontage along Market Street and then what is one of the largest assemblages of surface parking lots in downtown San Francisco. The site was zoned under the market octavia plan primarily for 85foot residential buildings with ground floor retail along market and 12th street. And a large central open space. And our Development Plans respect and meet these requirements with 584 residential units in five different buildings with none higher than 85 feet. 13,000 square feet of retail, mainly along market and 12th street. 23,000 square feet of Public Open Space and gardens, plus a 30,000 square foot new stateoftheart union hall and the renovation of the Civic Center Hotel. In addition to meeting the requirements of the market octavia plan, our project exceeds the plan requirements in three important ways. [sirens] first, upon completion, approximately 27 of all the residential units will be affordable and lower than usual but average area meeting income levels. And because we knew from the beginning that our plans needed to include a thoughtful approach to the Civic Center Hotel and its residents, we have committed to construct a 100 Supportive Housing project on site with our Partners Community housing partnership. And the project will be phased such that the c. H. P. Supportive housing building must be complete and ready for occupancy before we can even begin renovating the Civic Center Hotel and this will ensure that the existing residents can move into the new building without being even temporarily displaced from the site. To our knowledge, this is the First Time Ever if San Francisco that supportive Homeless Housing has been included as part of a private project and perhaps even more uniquely no city money from the Mayors Office of housing or otherwise has been used to construct the c. H. P. Building. We are donating the land and paying for the gap financing. Second, well preserve the project center hotel and excellent retail frontage along Market Street near brady. Indeed, were planning to seek millsac treatment for the Civic Center Hotel and thus will be adding the building to the National Register and look forward to coming back to the board of supervisors early in the new year. Third, the project privately funds and delivers what was one of the most important open space aspirations of the market octavia plan which was a center piece publicly accessible open space that would serve the entire area. The extensive input from nearby residents, weve designed and will build an immersive garden that will be activated on all sides that also includes a decorative art piece that will screen the existing structure. Interestingly, in meeting the challenges of the e3 Public Policy issues Affordable Housing, open space and historic preservation, we were pushed and ultimately embraced a pretty wonderful, diverse, and finegrained urban design while unlike more monolithic glass towers that you might see further down Market Street, this project is comprised of six different buildings and they have different heights and massing and materiality and here are a few other vantage points. You can see this is looking up Market Street and this is across the street from the cafe. Were very proud of this project. But were even more so of our partners and i do want to acknowledge just a few, first and foremost, local 38 and the Pension Trust fund. When it comes to supporting supportive Homeless Housing, local 38 is really walking the walk here. Because we are building them a new home that theyre going to occupy forever right next to the new c. H. P. Supportive housing building and i think they deserve a tremendous amount of credit for giving us the freedom to try to make that happen. I also want to acknowledge the community, especially the brady street neighbors. We had a really wonderful dialogue with them throughout this process. And, of course, there are some issues that people have legitimate concerns about like construction impacts and what does it mean for traffic and the like. But not once in three years of meetings did we have anyone in that Community Say we dont want supportive Homeless Housing in our backyard. And that is not something that you often see and i think they deserve a tremendous amount of credit. And frankly a big reason that both local 38 and the brady neighbors were comfortable supporting a Supportive Housing project here was because of c. H. P. They have an impeccable track record, both building and operating Supportive Housing. So with that, ill turn it over to anne topier and then well be here to answer any questions that you have. Ms. Topier. Good afternoon. Good afternoon, supervisors. Anne topier, project manager in the office of economic and Workforce Development. I just plan to take a couple of minutes provide an overview of the primary elements that make up the Community Benefits package in the Development Agreement. Unlike d. A. S for projects that require significant up zoning, the city is entering into this agreement with strada brady l. L. C. Whose project is largely code compliant to secure all the Community Benefits, fees and requirements identified by the market octavia plan as well as a significantly enhance the Affordable Housing program in large privately owned publicly accessible open space, all of which will be located within the boundaries of the privately owned proposed project site. If exchange for a 15year vested development right, the city receives legal assurance that these additional benefits will be delivered in a timely manner in accordance of the time with the d. A. For this project, the d. A. Primarily focuses on the delivery of the colt canon street 1 un hundred affordable Supportive Housing parcel. It will provide 100 units of deeply Affordable Housing for formerly homeless tenants. The first tenants in the building will be the longterm residents of the Civic Center Hotel who, upon completion of the building, will provide relocation to the brandnew units on colton street. The d. A. Incentivizes the developer to deliver the colton Street Building early in the term by restricting access to construction permits into a market rate residential building until after colton street is completed and ready for occupancy. Strada has entered into a joint venture to construct a new building and the developer is funding 100 of the gap. Relieving the city of any financial commitment to the development of the building. In addition to this new onsite 100unit Supportive Housing, the project will deliver inclusionary workforce units throughout much of the four market rate buildings on site. In total, the project will contain up to 584 units with 27 affordable at an average of approximately 50 of the median income. This essentially doubles the inclusionary requirement for the site under the market octavia plan. The 57workforce units will be delivered at units not exceed 100 of a. M. I. As you know, when originally approved the market octavia plan recommended Public Open Space at this site but did not provide a mechanism for delivering a park on privately owned land. The second key benefit provides a new network of public accessible open spaces throughout the project site, including a 13700squarefoot privately owned publiclyaccessible groundlevel park to be known as the joseph p. Mazzola gardens. It uncolludes childrens play equipment, seating and recreation areas all built, operated and maintained at no cost for the city. And approximately 7800 square foot portion of the gardens will constitutas inkind contribution to the Community Infrastructure impact fee. Providing a critical public space in further to the market octavia plans market space goals and policies. In total, the project features 23400 square feet of publicly accessible open space. Prior to obtaining certificates of occupancy for the a and b market rate residential blls, the developer is obligated to provide mid block open spaces. And finally the develop her enter into a agreement with o. E. D. And establish a hiring goal by the contract monitoring division. This concludes my summary of the Development Agreement and im available for my questions if you have them. Thank you. Any questions from members of this panel . Seeing none. Are there any additional comments from staff from planning or the office of economic and Workforce Development . Ok. This is an extremely controversial project. [laughter] [inaudible]. And supervisor kim may have some comments after Public Comment. Mr. Mazzolla, i think i saw you. Lets start Public Comment with you. Thank you to you and local 38 for participating in this. And i have a number of speakers ive also neglected to acknowledge, Community Housing partnership in ms. Gilman and mr. Tracy for their work at the Civic Center Hotel. This has been kicking around since my first term in office. Im delighted that 1629 market is finally here. The floor is yours. Thank you very much. Thank you for allowing me to speak today on behalf of this great project. Were very excited to be at this stage. It has been a long time coming, as you said. Supervisor peskin, local 38s had its headquarters at 1629 Market Street for over 50 years and were proud neighbor in the community and Work Together with strada. We interviewed a bunch of Different Developers over the years and strada came out by far and above the best. Theyre well qualified and have a great team design with c. H. P. And with the david baker and associates. Its a great team. And theyve been reaching out to the Community Like you said. Theyve had countless meetings and they have been doing everything on the up and up and have gone over and above where they need to be. We couldnt have picked a better partner. This goes without saying that the project will be 100 union. With good paying jobs. Good benefits. And its going to create a lot of great working conditions for the people that work on that job. With this project, local 38 and its members remain a key part of transforming Market Street neighborhood for a longterm and we think this is a great job. Like i said with great benefits for the community. Were very excited. We hope that you feel the same way. Thank you . For your time. Thank you for your time. Thank you, and thank you to the members of local 38. I have a couple of speaker cards. Mr. James tracy and dwayne sears. And if there is anybody else, please come on up. Good afternoon, supervisors. My name is james tracy, im standing in for gail gilman, our c. E. O. Of Community Housing partnership whos out of town for the next week or so. When gail first contacted me by text and said, hey, i need you to come to a meeting. Were going talk about tearing the civic center down and building it up, i said oh, my god. Have we got ourselves into . Quite bluntly. But once we met with strada and realized their commitment to making sure that the Civic Center Hotel was rebuilt just around the corner and stayed in the neighborhood, they werent trying to pull any type of shenanigans that are quites common in other proceedings. And they really became trustworthy partners. Its been a been an honor to talk with the community members. Again especially the brady street neighbors who have always asked the real questions. The questions of keeping people out of their community or pushing people out and never became part of the dialogue which is very appreciated on our part. Were excited to see this new building. Were hoping that it becomes step up housing for people in some of our other buildings that no longer need intense services that are ready to move on and we look forward to partnership with the city and all the other stakeholders as that dialogue progresses. Thank you. Thank you, mr. Tracy. Mr. Sears. Im with the Community Housing partnership. Excuse me can. This building has been there for quite some time. I lived in this building 20 years ago. And i think it changes like [inaudible] and ill support it. And im i think it should be approved. Ok. Thank you, sir. Thank you. Are there any other members of the public who would like to testify . Please come forward. Hello, committee members. My name is lisa dunmaier. Ive lived at 67 brady street for over 17 years and im speaking in support of the 1629 Market Street project today, representing three other neighbors who were not able to attend in person. There are other 100 of us in the neighborhood that have been eagerly working in support of this project. We first met Michael Cohen and will goodman in 2015. April of 2015 at supervisor kims neighborhood meeting at the red cross building. And since then, they have, as mentioned, met with us over 10 times as a group and that is not counting all the individual meetings that theyve had both with renters like myself as well as business owners. Its really been a pleasure and i wrote a lot more than that, but i just wanted to stand up and, for the record, thank everyone involved and we really look forward to seeing the project move forward. Thank you. Thank you. Seeing no other members of the public for Public Comment, well close Public Comment. One piece of housekeeping s. There a motion to excuse supervisor farrell . So moved. Made by supervisor tang. Can we take that without action . Supervisor kim. This spronl in your district and you hefped steward it along t. Floor is yours. Thank you, chair. I wanted to thank members of our community for coming out in the middle of the afternoon to speak on this project. Both mr. Assesser and ms. Dunmaier and it is great to hear that the project sponsor did its Due Diligence to make sure that it got its feedback and input from our neighbors support this project. Overall, when strada and Community Housing partnership had reached out the me early on with the Plumbers Union, i was very excited to see something happen on that corner. I used to live down the block from the Civic Center Hotel and i often said that, you know, people say a lot of things about the district i represent. But this was the one block i really did feel unsafe on. And so im really glad to see that we are moving forward with rehabilitating this area and well do something really great with the Civic Center Hotel site. Really it is one of the worst Single Room Occupancy Hotels ive ever visited and that we are moving forward and that also we have this Navigation Center there right now that actually showcased how beautiful that building was. I really did not realize how beautiful the building was until we opened up all of those windows. I think it has really made a difference. But thank you for moving forward with a very balanced project with Affordable Housing. Stepup housing is sorely needed as mr. Sears had mentioned. In our neighborhood, we have a lot of residents that have lived in Single Room Occupancy Hotels for a long time and have demonstrated that they can move to different types of housing and free up units for those currently on our streets and need the additional supportive services. Im very excited to see this project move forward. It will be great for this neighborhood and thank you for everyone who is involved in this process. Thank you, supervisor. With that, is there a motion to send the general plan amendment, the planning code, zoning map, changes and the d. A. To the full board with recommendation made by cosponsor of these items, supervisor sheehy . Colleagues, can we take that without objection . The motion is approved. Congratulations and good luck getting this done on time and on budget. All right. With that, thank you supervisor sheehy. Madame clerk, could you please call items four, five and six together . Item number four is a hearing on housing costs and information tracking. Item numbers five and six are hearing resolution improvinging the biannual housing balance report. Supervisor kim . Thank you so much. And i believe that i have someone else joining me for items four, five and six as we have combined our hearing. Today we [inaudible]. Today we are hearing our annual housing balance report from the Planning Department. As many of you know, in 2014, voters sent us a clear mandate to set a goal of 33 of Affordable Housing in our new production. Under proposition k. To do this, requires a careful balance of both preservation and protection of our existing Affordable Housing which by and large are rentcontrolled units as well as planning for and producing new Affordable Housing. Whether it is through our on site inclusionary policy which we just amended the year, onsite acquisition or through our area plans. Today were holding this hearing and votings on the resolution because part of achieveling this affordable goal is to have accountability and monitor the efforts of city. The report is clear that while we have increased our overall Affordable Housing production since last year by 1. 6 , the reality is that over the last 10 years, for every three affordable units the city built, we lost two rent controlled units. As our housing rights advocates have stated, its three steps forward and two steps back, which can be incredibly frustrating and this is disconcerting because we only have an estimated 1. 6 of future entitled projects that are affordable in my district. In 2015, i worked alongside many of the tenant advocates that have come today to advocate for tenant eviction protection 2. 0, which since its passage, we have seen a twoyear decline in nofault evictions. From october 2013 to september 2015, there were 4304 evictions filed with the rent board. Compared to eder from october 2015 to 2017, where we saw reduction of 200 filed evictions. And the greatest increase seen in nofault evictions. Last year, i worked with president breed, supervisor p esskin and supervisor saifai on one of the largest reforms and amendments to our inclusionary housing ordinance, which added to our Housing Stock more onsite affordable units. Well continue our series of hearings on the soma plan which as you recall set a minimum of onethird as our affordability target. Again, part of the prop k intend and mandate. I want to appreciate the Mayors Office of housing and Community Developments work on their site Acquisition Strategies as this is an important prong in our protection efforts and look forward to hearing more about this. There are things that we can currently do now that will also help us immediately lower additional nofault and fraudulent nuisance evictions that our Community Leaders are considering at this time. One is the fullyfunded right to Legal Counsel that the tenant unit is advocating for and collecting signatures to put on the june 2017 2018 ballot. We can also support statewide efforts to repeal and also look at how we can impact Residential Vacancy and thank you to supervisor furor for leading the efforts and our advocacy in sacramento to repeal it. Much needed. Finally i want to recognize the Planning Department for its commitments to this important work in keepinging the public apprised of the citys progress toward achievinging the mayors housing balance goal and state mandated Housing Elements requirement. As this is an important way for us to achieve our goals making sure that were housing everyone as were housing multiple income brackets here in San Francisco. I want to first call up Annemarie Rogers from the Planning Department and then well be asking tara im sorry. From the Planning Department. And then we values kate hartley as well as robert colins from the rent board as well. Thank you, ms. Rogers. I dont know if there are anymore comments from members of this committee before we begin the presentation. Thank you, ms. Rogers. Thank you very much, supervisors. Im Annemarie Rogers from the Planning Department. Happy to be here in my new role as citywide director. Congratulations. Thank you very much. Im looking forward to coordinating our work most closely with this important body. When it comes to todays hearing, good data, of course, is critical to good decisionmaking. It will be a great deal of the departments energy. We regularly produce about half a dozen products on data just in relation to housing alone. Many of these products are mandated either by the state for the reno reports or the general plan, which mandates the Housing Inventory or by ordinance like todays housing balance. Other reports are voluntary and have become indeed much used like our quarterly housing typeline report. This takes a lot of staff time and resources, both financial and technical to produce the increasing amounts of and complexity of reports needed by the public and lake city. We typically have not been given more staffing or Financial Resources to secure data and produce the reports to meet these evolving needs. It is important not just to our pride as professionals but essential to decisionmakers that we published only data that we believed to be complete. So this means that we need to spend a great deal of time cleaning the raw data that we get to make sure it is accurate. The richest data product on housing that we produce is called our Housing Inventory. This year is the 50th anniversary of the Housing Inventory. So, were celebrating that important victory. Im sure you are all remembering 50 years ago today when it was created. In 1967. And watching consistent data sets over time is really important because it helps the city get context for todays changes. This report covers a broad array of housing data you can see from production to affordability levels for both sales and rental prices of new units and with specific info on completed projects. And well talk more during the presentation about the importance of this context. Now as new flavors of data are desired, the most efficient approach is to augment or adjust our existing reporting instruments. And here the Housing Inventory plays the most flexible and longstanding housing reporting product. I understand that part of todays hearing is to consider adjusting these reporting frameworks. Heres a couple of thoughts on that. First with regards to frequency. Its important to be cognizant of the frequency and the granularity of available data. Typically reporting more frequently than on an annual basis, it is hard to get good data. Even when you could get new data thats refreshed that often, when you look at these shorter increments, it can be just reporting seasonal variation or some ideosyncratic noise so it is hard to get an a understanding of what the real trends are unless you are looking at the bigger picture. Also, its important to note that some of the data sources have one to two years of lags in availability of data. Like i believe possibly some of the day that were trying to get. And we should consider number two, the data sources and availability of resource. Some of the data that we use in our reports is made is originated with other city agencies and in some cases we may need to acquire or data from thirdparty sources, including those that may not be available in formats that lead us ready for analyzization. This is a great opportunities to talk about broader trends and we hope to highlight the data in the context of policy which you might which to set. I wanted to be here personally as a new citywide director to reinforce the importance of this work and this bodys reception to the work. And for our presentation, first youll hear as the supervisor said from teresa ohaida on the housing report. Thank you. Have. Thank you very much. Good afternoon, supervisors. My name is teresa ohaida, principle planner with the citywide policy planning section. Im here to talk about the housing balance report. This is only for your information and no action is required. But first i would like to acknowledge the presence of kate hartley, director of the Mayors Office of housing and Community Development. Amy chan, whos also representing the Mayors Office of housing and rob college, director of the rent board. What is the housing balance report . In april of 2015, the board of supervisors approved ordinance 5315 to add section 103 to the planning code. This new section directs the Planning Department to monitor and report on the balance between new market rate housing and new Affordable Housing reduction. The housing balance is the proportion of all Affordable Housing units to the total number of net new Housing Units. Over a 10year housing balance reporting, i will be reporting on the third report which was submitted to you in late may and covers the period from the First Quarter of 2007. To quarter 4 2016. This will be the third presentation under housing balance before the board of supervisors mandated. So why a housing balance . One stated goal of the ordinance is to ensure the data is meeting Affordable Housing targets citywide and within neighborhoods informs the approval process for new housing development. Just to remind the commissioners, here separate housing affordable production targets cited on the man da itsz and each have its own monitoring and reporting requirements. The housing balance report gives context to these different passing production goals. The Housing Elements mandated by the state to be updated periodically sets a production goal of about 8,000 net new units built between 2015 and 2022. This is commonly called rena or Regional Housing needs allocation goals. 57 will be affordable to lose and moderate income households. This means about 16, 333 units built are substantially rehabilitated in eight years. The Planning Department submits an annual report in the citys progress in meeting this goal to the state department of housing and Community Development. The Planning Department also prepares a Quarterly Report to the Planning Commission based on the same production goals called the pipelineboard. Proposition k, passed by San Francisco voters in 2014, set a goal that 33 of 3,000 net new units be affordable. This is about 9900 units. This is the goal that the housing balance report will be aiming for. So what is the 10year historic Affordable Housing trend . If we are just to look at new Housing Production, net new Affordable Housing made up 23 or just under a quarter of net new Housing Units built in the last 10 years, id like to add that this is about the proportion that has been more or less consistent in the last two decades or more. The housing balance calculation, however, looks beyond new Housing Production. In addition to new Housing Production t housing balance calculation also looks at rehabilitation completed and the small sites program, Public Housing placements completed can. Rad stands for rental assistance demonstration. Essentially older Public Housing projects. Entitled and permitted affordable units minus units removed from protected status. Essentially these controlled unites moved from the rental market through ellis act, demolition, and owner movein evictions. This is collectively called net Affordable Housing stock for the purposes of this report. This Affordable Housing stock is seen as a proportion of net new housing built and entitled net new units. These figures are all for the 10year reporting period. This presentation covers the second the first half balance report so the period covering the first part of 2016. The Affordable Housing stock totaled 8480 units. This net Affordable Housing stock over 36538 units is about 33 . This is the citywide cumulative housing balance over a 10year period. The ordinance also requires that the housing balance be calculated by board of supervisor districts and by planning districts. The housing balance for the board of supervisor districts range from negative 206 and in the district to. 74 in district five. The negative balances are due to larger numbers of units removed from protected status relative to the net new affordable units built and the net new housing bill overall. Districts five, six, seven, eight, nine and 10 have positive housing balance while the rest could we just i just had go back . No. No. I just wanted to ask a couple of questions. Two slides previous to this. So, my first question is, you talk about what our Affordable Housing goals under rena and proposition k are for 2020 or 2022. But could you tell us where you fared at least prop k wasnt in place at that point. But how we fared in our Housing Elements rena goals for 2007 through 2017 . I actually have the numbers in my notes but i dont have it right now. But can you provide them by the end of the presentation . Oh, yeah. I think it is helpful for us to know how weve actually met our rena Housing Element goals. I will be i will do that. For the years that we actually but going back to the slide. That we have in front of us. So in terms of removal from protective status. Do we have any sense of how these units are removed . Generally what the large patterns are. These are units removed from protected status. They are rent controlled units removed from the rental market through the ellis act. These are demolitions. I know that. But do you have a sense of the breakdown . We do have to breakdown in the report. Ok. It is not part of the presentation. Im afraid that i did not bring my copy of the report. I just think its important. We all have access to the report. Its mostly o. M. I. Could you present that at the end of the presentation, too . Since its in the report. I think it is important as we talk about this usual issue for all of this to be out for the public to understand as well. So, why are we losing housing, right . Because we for example, we look at supervisor tang at the negative 205 but she isnt losing the most units. Its actually, according to this, this is actually district eight that has lost the most units from protected status at 655. And i think it is just important for this board to understand if you are going to counter loss of protected units, what is that were losing it to. What is the breakdown amongst these categories. That is why i asked that question. I will be able to provide that after do you want to jump in . Thank you. If you have that data by districts also, i think that would be very helpful. Yes. This next slide shows the distribution by planning districts as required by the ordinance. These districts, by the way, are consistent with the boundaries used in the annual Housing Inventory reports. Again, theres a range of balances between the planning districts with the outter sunset which is roughly the same geography as district four. And bruno heights with 85 and the Western Addition. The ordinance also requires a projected housing balance. Essential lynette new Affordable Housing units proportion of net new units in projects that have received entitlements and have yet to receive Building Permits. The slide provides the projected housing balance well it shows that the projected housing balance is at 16 . This is about the same as in the previous 10year reporting period. Again, this is provided at the district and planning district levels. Could you go back to the 508 units that are t. D. B. Does that mean that they either become low or moderate . We dont know what the affordability is yet. Right. I assume youre countinging the first three in the total of affordable units. You are saying the 508 will either end up in the low or moderate categoris . That is correct. The housing balance ordinance specifis that three Major Projects have been entitled but do not yet have Building Permits not included in the projected housing balance, that is until a unit of until facing of these projects move to applying for and receiving Building Permits. All together, the remaining faces of these projects will provide about 22,000 net new units of which 22 will be affordable. Also not included in the projected housing balance are projects currently under review. For about 18600 units under review of which just under 10 are in, 100 Affordable Housing projects. Another 100 market rate protons would roughly 11 thousand units will be subject to the citys housing requirement. That could mean about 1400 new affordable units if built on site. The second phase of the rad program has been included this year, representing over 2,000 units in 14 projects. I will now talk about miscellaneous housing balance matters. The housing balance is by annual reporting period. Reporting schedule as stipulated in the ordinance. The report will come out the first of march and the first of september. Weve had some difficulties because of staffing, but we should be able to catch up shortly. The ordinance also requires that an annual hearing be conducted before the board and we normally have it in april, but due to scheduling, were just being heard now. The office of housing and Community Development and the rent stabilization board are being represented today and are available for questions from the board. And, um, the Planning Department has also created and maintains a website specifically for the housing balance report as required by the ordinance. The report as well as previous ones can be downloaded from this site. That is all for now. Thank you. Excuse me. Before we go to the next topic, we have the answers to the questions that you just asked. Thank you. Supervisors, leading to the question of the breakdown of the sources of the loss of protected units, for the numbers in the balance report. Of the a little bit under 4200 units that were losts to protected status, about 2300 were due to owner movein evictions, about 55 . Did you say 53 . 55 or about 2300 units were due to o. M. I. S. About 13 1300 units was due to ellis act, about 32 . Demolition was about 478 units or 11 and condo conversion was 69 units or 2 . What was the last number . 69. 69 . Sorry, you say it softly. Sorry. No, its ok. Its really helpful to have the breakdown and it would be great to get it by district because im happy to see that district six has the lowest removed from protective status at 135, but its helpful to understand why certain districts have more or less as we consider policy considerations. Thank you. Supervisor p esskin . If there are 200 condos converted a year, why is the number only 69 . Good question. I dont know. That is a number that was in the report. That was i think our staff calvin welsh has an answer. [laughter] i dont know if i have an answer. I was actually talking about calvin. Oh, im sorry. Im sorry. Calvin, we would like you to you are working off the ticks, if youll remember legislation that was done four years ago now. In lieu of condo conversions. You allowed ticks to be converted to condos. You were working them off in the annual rate and they go first. That is why theyre low. Right. Thank you. That was during my time off from the board. Thank you for that reminder, mr. Welsh. Are there anymore questions from members of the committee . I think we still have the trends. Right. Oh, are we now going on to my part of the presentation on housing costs . We might be. Supervisor tang . Thank you. Thank you for this report. Every time i look at it, of course i look for district four and it is horrible. But in terms of housing balance, so recently the mayor had announced his executive directive around housing goal each year, 5,000 units. Annually. And so, you know, he brought together all sorts of Different Department folks trying to ensure that the permiting process would be done more quickly, more efficiently. I just want to make sure that, especially when we look at the housing imbalance and in district four, for example, that as parz of that directive, the permiting process for smaller project, whether it is a. D. U. S or home extension that those are all included as part of it because i think that that is, you know, smallertype units that are being added. They do add up over time and that is the only way, frankly, that i think district four will be even close to housinging balance of some sort. So i just wanted to make sure that as the mayor announces his executive directive recently, that the Planning Department and all the other Different Departments are working towards a more efficient process. Not just for the large projects, but for smaller ones, too. Yes. Our department will be providing our response to the mayors executive directive in early december. I believe december 1 is the target for that, and of course we would be looking at all essential housing especially Affordable Housing. Great. Thank you. Im look forward that in december. Supervisor . Thank you very much. As were going on to the second part of the presentation around housing costs, i think the housing balance report is an important tool that we have for understanding how our neighborhoods are changing over time. And how well, how poorly we are meeting our Housing Production goals. However, as valuable as it is to know how many affordable units are created and lost, this does not give us the full picture of Housing Affordability in our city. We need to understand how the loss of units relate to the actual cost of housing. We all know that San Francisco has become one of most expensive cities in the world, yet even as policymakers we donts have a clear data on how much it costs to buy or rents a unit in a given neighborhood at any given time. In order to fully understand the significance of our housing balance report we should also know how costs change in our districts as we lose and gain affordable units. When we are told that building more units with a market rate or affordable will bring housing rates down, this [inaudible]. When rent control units are lost, we lose not only the often longterm tenants who live in those units but affordability because we do not have the ability to place price controls on rentcontrolled units the. And when a massive number of wealthy residents are po efing to a neighborhood where high end housing has been built, we assume that sale prices will increase with those units that exist around these new developments. However, we cannot know unless we have regularly updated information. Today we will hear from the Planning Department about how rental and sales prices for housing have changed across our various districts over time. Staff will also briefly discuss the factors that are driving this increase. Pedro peterson, planning from the Planning Department Citywide Division sibl here to make a presentation. Good afternoon. Thank you, supervisor, for vietszing us here today present on housing cost trends in San Francisco. My presentation today piggybacks on the housing balance report work which my colleague just discussed with you. The presentation will be broken up into four sections. Ill give a little bit of context into why we were invited out here today. Ill then show you some housing cost trends over time and across the city. [please stand by 1234 678d weve seen a real divergence since 20102011 where the curve in San Francisco have shot up dramatically. The same can be seen in rents in all three geographies, San Francisco bay area and california. Though we do see since 2015, at least in the zillo data, theres been tapering in the San Francisco and bay area a plattee plateau but the median rent is still above 4500 a month. Using a slightly different scluz me. We dont have it broken up by different size its just median. This is another important distinction. Its not the asking rent. Its not what current residents pay for units because they may be lower due to rent control. Its the rent a tenant would face in the market today. And this is using a slightly different data set to look back further to 2003 comparing median rents and inflation to see how much more housing has gone up when compared to other prices. This is the inflation rate minus shelter compared to median rent and home values in San Francisco. These trends are happening throughout the city but its important to highlight how districts vary differently. These are home value increases overlaid with supervisor districts bay view, the mission, Western Addition has experienced rates of increase of almost 100 . The western side of the city we see rates mostly above 75 . And even where the rates have gone up the slowest on the northeastern corner theres still above 55 since 2010. We see similar trends. The neighborhoods well served by bart and cal trans or caltrain and sort of increases throughout the city above at least around 20 . So what are some of the potential Drivers Behind these trends . So we pause it for explanations. One is the rapid expansion of employment coupled with rising wages. Lagging Housing Production that hasnt kept up with the increase in jobs and wages as well as regional challenges that create job housing imbalances in jurisdictions throughout the bay area. So this chart shows increases in jobs by wage classes in san france since 2006. As you can see theyre going up in every wage category. We have roughly 150,000 more jobs today than we did at the bottom of the recession in 2010. And more jobs than the previous peek in 2008 so fairly dramatic increases in the number of jobs but they dont tell the story. The chart shows employment growth since 1995 has been about 30 in San Francisco. This chart was put together by the office of Economic Analysis in the city. In the meantime, housing has gone up about 100 . A better explanation is the combination of number of jobs and rising wages. So the total income in San Francisco has gone up almost 90 so closer to the rising home prices. Supervisor supervisor can you repeat what you said . The previous slide showed how mroi employment has gone up by 90 and housing has gone up 100 . What may be a better explanation is employment and wages. If you multiply the number of jobs by the number paid we get a total income for San Francisco which has increased about 90 since