Anyway. They do a good job getting this information out. To certificate holders. One thing i want and i notice it might be off the sur joke, and ive been crying for a number of years, to try and get the grandkids certificates of preference also. We have a lot of them who would love to come back to the community but unfortunately they dont have a certificate. I have one son who was born after we moved and i never used my certificate of preference even though i bought a home. I never used my certificate yet in hopefully if i get mine out, and turn my home inform my daughters name i can get a senior place away from the kids. I whoa love to see some of the grandkids get certificate. Ms. London breed, i used to bring that up then. Maybe you guys could blow in her ear and have get that for the grandkids. But like i said, theyre doing a tremendous job in getting out the information and i know, i have some my wife has some nephews and nieces that live in maduro and i forget what the other place is. We were telling them about certificate of preference also. They do have certificates and they were relocated and i talked to people who is out of the city and tell them to get in contact with the certificate preference information and some of them have and theyve been blessed getting the information to them so they can give it to the other people who it is going around where the list should be getting larger. Thank you, very much. Thank you. Next speaker. Casandra. Good afternoon, board of supervisors. Thank you for being here. Thank you for i was asked by zonia to come and speak. I want to just im a certificate of preference holder. I was a infant when my parents were displaced. They were vibrant artists in the community. My mother was from sweden and she spoke very little english. My father drove a cab and was a sculptor. Very young man. When i was a baby, we moved. And no one told me why. My family would drive back to San Francisco over and over again when i was a little girl. I never knew why. I was very artistic and i was cultivated to love the arts and i never understood these trips back into the city. My father was a proud sa sil yan and he would talk about it and dream about it. I grew up and went to college. I got a bachelor degree at u. C. Berkeley and i lived far from high school and went to Community College first and got my masters degree and living in berk re. Im an artist and engage in the arts and music. And when the Outreach Office contacted my father and i guess 2015, he called to tell me about this program and they said its a scam. Its a scam. I know its awful in the bay area to find remotely Affordable Housing if you are in the arts and i teach at a college as a lecturer and so its kind of Scattered Work but to return my father here and mother through their daughter. So i thought it was a scam. And even when my father kept pushing me to look into it, when i did, brooke was working in sonias position and i was skeptical but i sent in my birth certificate and got this certificate mailed to me. I remained skeptical. I thought what kind of program could this be . It doesnt make sense. Ultimately, i was called by thie these people calling me . What is their motive. And so, the private investigators who reached out to my family ultimately i now live in San Francisco and return to San Francisco and im the first in a lottery for the measure a building and so it took me a lot of work. So i just wanted give my family spoke of this beautiful African American neighbors and now i get this was a very rich community. Thank you. Thank you. Ash washington. Can you come up to the mic. My name is ace. I was born in that place. You know my history i dont have time to go but one day i sat down to talk about it because its one extreme to the other and i want to congratulate the staff and and when she first came here and and she did a wonderful job and i dont know you came on the same time and that picture and so, they did a wonderful job and it cannot be denied. Im just going to talk about right now, the next two minutes. Is history young lady. She can understand. She comes from where she can. I was born and raised and i came up when development agency, i knew mary rogers and when they tried sued to try to get the master lease and which i would call a certificate of preference and whatever you call it right now and im honored i believe able to have this and none were on ex september foon ex septembs morales and i hear in the report theres a whole big list that we dont know who the people are and there is a list still its called the master list. And waypack sued some of their hard on money we got from the federal government to get that list. So i wont go into it. Ive got one minute left. Im honored and amazed and i have to get your photos because theyre doing a wonderful job. I got to give it to you. You are part of the new era. Because right now we dont have no time for era. In the three eras are misguided leadership, failed effort, and the most egregious violation that ace on the case cannot stand is undermining the community. Everyday we had a level that we started and we starting a whole new era and we have london breed, queen b the mayor and all this new stuff going on so im just happy. Im tickled, not tickled pink but tickled black rit now and and thank you, very much. Thank you mr. Washington. No more speaker cards. Is there anybody here here what and are there any questions or comments. No questions. Just a comment of joining the others with congratulating you, pam, sonia, you know i just bother you all the time. All the time. But i thank you that you make yourself available for that and if you dont have the answer, you find it and you come back and pam, for this thorough report, full can annual thank you so much maria, as a team. Thank you,. Vicechair. I echo the bank and i have some questions and i just jotted them down but one of them, im interested in the usage of dalia by by stakeholders. Theres a percentage that is still doing business and i am just trying to see whether dalia is a good tool. Again, pam sims. And actually, dalia continues to be a very good tool for our cop holders as you know are elders. And actually the number of paper avenuapplications was up for 189 versus 17 or 18. There were six paper applications for cop holders out of 209. Thats excellent. Another question i have is, because i keep getting confused in my mind about the rent subsidiaries is the Cue Foundation the only vehicle for rent subsidies . Unfortunately, that is the primary goto organization for rent subsidiaries that are on going there. Other organizations that may help with deposits or application costs, moving costs but for on going rental subsidiaries, the Key Foundation is pretty much it. The Housing Authority vouchers are another good source. Unfortunately our Housing Authority isnt right there right now. It could be a couple years before any vouchers are available for them. How does the Cue Foundation obtain the money to provide the subsidiaries . Does it come from the city . Yes. And if you want a more comprehensive answer, maria can answer that for you but yes, it comes from the city. Ok. Im trying to wonder why the city doesnt do it directly or do more of it . Maria benjamin. It does come from the city, theres a limited amount, its really expensive rental subsidiaries. You know, because theyre on going for as long as a person is living in the unit. And there are theres been work done to review and figure out other Funding Sources for more rental subsidiaries and i dont have anything real to tell you right now about it but we know that theres a need for more longterm rental subsidiaries. Without the laboring, the point i thought that the Tipping Point and some other private sector actors that are doing charitable types of ventures that rent subsidiaries could be or would be parts of their programming, does that make sense . Again if you put it out maybe you will happen and someone is listening. So then, my last, i know you want questions chair bustos. On the western edition list, and the interactive map i thought they were both great items and certainly the interactive map is very creative. So this list of coming soon units in western editions since aa lot of folks said western edition is the place, how is that list comprised. Obviously with the Mayors Office of housing and then secondly, who gets that list . Is it just blasted to everybody . What weve done in the last couple of years and i think you may both have received it is we do a holiday letter. And in the holiday letter, we always add in there because we know what c. O. P. Holders wanted to hear and we list all the units that go on to their website and they have this tool that allows me to determine what units will be coming on in the next year. And we put those units, whether theyre rental or ownership in the a. M. I. Levels for individuals and it goes out to everybody who is 950 on the list. Thank you. Thank you, vicechair. I just want to say thank you so much. Theres such a difference between when i remember back in 2009 when i first joined the commission when it was redevelopment and now even the way you presented it, this really is about Public Service and i truly believe that you have done your best and are continuing to do your best, especially with the steps that you are outlining to maximize success. This is really awesome work that you are doing and even having the investigators, i remember back then when mayor newsome when i worked for them he said go to redevelopment and talk to the executive director about putting in 100,000 to find some investigators to go out and find people so im glad that were using all means necessary to locate people that rightly deserve the opportunity to come back. Please, keep up the incredible work of this Public Service that you are doing. And know that you are actually making a huge impact in the lives of people. So thank you so much. Madam secretary, next item. The next order of business is item 6, Public Comment on non agenda items. We have one speaker card. Oscar. You see me coming up here but as long as they have an agenda im going to be on it. Thank you. Anyway, two things i want to speak on. One, you know, back in the day, we had a Training Program, the ocii was Redevelopment Agency had a Training Program. Larry hollinsworth and i forgot the other person who they were trained for property manager, management, anyway, Larry Hollins worth, he managed the Jackie Robinson and another unit up there on cashmere in hunters point. Can you try and get another Training Program to train some of these people in these projects who want to be Property Managers to manage some of these units that is in there and also, not only do they train them, when i first came back in the 70s, they trained a lot of people like under ms. Dunbar for Property Managers and Different Things dealing with property. But that was a Training Program the Redevelopment Agency had. I think its time for this agency to come up with that type of program again. To train people in the community and wore going to upgrade and help people in the community to process teprosper and be succesn life. We need to have more Training Programs for them. The other thing i brought, i know were not glide as big as glide and thanksgiving, but my church is having a thanksgiving dinner for anyone who dont have a place to go. Thanksgiving, my wife and myself and members in our church are preparing food and im going to claim good cook. My wife also im smoking eight turkeys and shes baking 11 turkeys and were doing ham, were doing everything that grandma used to do for thanksgiving. So, homeless, whoever, dont have any where to come, come to st. Johns, im leaving some flowers for you guys. Come out and participate. Its going to be from 12 00 to 4 00. Like i said, its just a pleasure to be a servant and i know you guys are servants who have done things for our community, various communities and i really like and respect each and every one of you individually and keep up the good work. Thank you, very much. Thank you. Anybody else wishing to speak . Seeing none, im closing Public Comment. Madam secretary, please call the nueces countnext item. Report of the chair. Theres no report. Next order of business is item 8, report of the executive director. Madam director. Thank you. Ill go quick. I do want to note that after the commissions actions and the Candlestick Point amendments in october sorry. [laughter] in october 15th, Planning Commission took action on the item and it was unanimously approved and staff is working with five point to complete the confirming changes to the sub phase application. And i also want to note this is timely that three projects that are undergoing lottery that were issued in october and november one is 106 unit in folsom street with 12, we got 6,900 applications and 12cop holders applied. The next one is another one in mission bay 3 east and lottery was issued in november and its a 56 unit rental housing affordable unit, 6,700 applications and 16cop holders. And theres one that is block one and trance bay lottery issued in november. This month and 156 below market rate Home Ownership units and we had 496 because Home Ownership is limited for one cop holder and ill go through the stages of the application process and so on so this is just the same story about how were getting more applicants and all the various projects participated in the application process. So again, thank you for the team and extensive work. Thank you for all your hard work on this. Madam secretary, please call the next item. The next order of business is item 9, commissions questions and matters. Mr. Chair . Yes, thank you. I know commissioner roll sal hed something to talk about. I wanted to ask the commission to close the meeting today in honor and memory of buck delenthal, chief assistant City Attorney, head of the Government Law division in the City Attorneys office. Who was my boss when i was a member of that team. Who essentially taught me everything that i think i know in the legal profession. I mean, i consider myself an expert in many areas of law. But it was buck who guided me as a very young attorney pretty much right out of law school and he was a head of that department for almost 50 years and the reading of his obituary and also of commentary by the City Attorney, dennisherera. Buck had adviced 10 may ors in his career because they advise the board of supervisors, the mayor and all the other elected officials when i was on his team, he was, i represented the Human Rights Commission and that is where i learned about the minority women local business program. I was handed that assignment by him. Thats followed me my entire career. He was the one who helped defend it, created the Legal Framework for defending it and thats why San Francisco is the head many every city in the country because of his foresight in how to defend that program and how to implement it. I was also the attorney for the Police Commission and the attorney for the rec and Park Commission and all under his guidance and watch and mentorship and he recommended that i take the position as General Council with sfo and City Attorney louise agreed. Beyond his major accomplishments, he was a wonderful, wonderful person and he died very unexpectedly and quickly right before thanksgiving. And his memorial will be on december 3rd, at city hall. Thank you, commissioner rosales for providing that information about mr. Dellenthal and we will adjourn in his memory and honor. As a wonderful Public Servant to this wonderful city. Madam secretary, please call the next item. The next order of business is item 10, closed session, there are no closed session items. The next order of business is item 11, o you adjournment. As we just stated, we will adjourn in memory of mr. Buck dellenthal. May i have a motion. I move. I second it. Moved by vicechair rosales and seconded by dr. Scott. Thank you. We are adjourned. My apartment burned down 1. 5 years ago in noba. My name is leslie mccray, and i am in outside beauty sales. I have lived in this neighborhood since august of this year. After my fire in my apartment and losing everything, the red cross gave us a list of agencies in the city to reach out to and find out about various programs that could help us get back on our feet, and i signed up for the below market rate program, got my certificate, and started applying and won the housing lottery. This particular building was brandnew, and really, this is the one that i wanted out of everything i applied for. And i came to the open house here, and there were literally hundreds of people looking at the building. And i in my mind, i was, like, how am i ever going to possibly win this . And i did. And when you get that notice that you want, its surreal, and you dont really believe it, and then it sinks in, yeah, i can have it, and im finally good to go; i can stay. My favorite thing about my home, although i miss the charm about the old victorian is everything is brandnew. Its beautiful. My kitchen is amazing. Ive really started to enjoy cooking. I really love that we have a gym onsite. I work out four days a week, and its beautiful working outlooking out over the courtyard that i get to look at. It was hard work to get to the other side, but its well worth it. Im super grateful to the Mayors Office of housing for having this for us. Good morning, everyone. Welcome to the thursday, november 21st meeting of the government audit and oversight committee. Im gordon mar and joined by Committee Member valley brown. Aaron peskin is unable to join us today. Thank you to this committees clerk, john carroll. I would like to thank john smith for staffing this meeting. Mr. Clerk, any announcements . Yes, thank you mr. Chair. Please ensure youve silenced cell phones and your completed speakerrer cards to be included as a part of the file should be submitted to the clerk. Items acted upon today will appear on the december 10t december 10th board of supervisors board of agenda. Item agenda number one is an ordinance amending the health code to maintain and operate at full capacity an adult residential facility with no fewer than 41 beds and amending the administrative code to establish the working group to advise the board of supervisors and the mayor regarding resident care, training, workplace conditions and staffing at the arf at 887 patrro. Thank you. This item is before us following substantive amendments at last weeks meeting and i want to note that the legislative aid for supervisor ronan is here should we have any questions on this item. Before we go to Public Comment, supervisor brown, do you have any comments . No. Any members who would like to testify on this item . Seeing none, point comment is closed. And can we send this item to the full bider positive recommendation without objection . Yes. And so mr. Clerk, please calls items 2, 3, 4, 5 and 6 . A resolution approving a mills act for a contract between assessmently a. S. A. D. O. W. S. K. I. , the owner of 2251 webster and a resolution improving a contract of 1401 howard llc and agenda item 4 is a resolution approving an act to property contract of gustov lign divisiogist and a py contract with the Swedish Society of 2861 Market Street and number 6 is a resolution approving a mills act contract between adell fung, Brent Goldman and 2735 fullson street, llc and the city and county of San Francisco. All agreements made pursuant to code 71 and authorized planning director to execute and record the historical property contracts. Well hear something from the Planning Commission on these items but we have a number of folks available to answer any questions that arise, including principal planner, elizabeth gordon, preservation planner, stephanie cicneros, the chief of real property, michael gine and applicants from the properties on howard, patomic and fullson streets in items 3, 4, 5 and 6. The Property Owner of webster street reflected in item two is out of town and was unable to attend today and now i would like to welcome michelle tailor, preservation planner with the Planning Department to present on these items. Miss taylor. Thank you. I will present a general overview and frida present on eh contract. There is local governments to enter to contracts with private owners with qualified Historic Properties and this to agreement provides property of tax reductions to owners of those historic prompts who can then allocate the savings toward a maintenance and restoration plan. It is the only local program that creates a financial incentive for proper maintenance of the citys architectural landmarks and from delaying largescale projects when put off can cause damage to the buildings. Put every local landmark building, as well as those listed on the state or National Register of Historical Places is eligible to apply for the mills act program. The department currently holds 37 active mills act contracts with the largest number in the debose historic district. Buildings under contract include singlefamily homes, multifamily buildings and large scale commercial buildings. Staff has reviewed each of the five applications and Department Staff conducting preapproval inspections working with applicants to revise rehabilitation and restoration Maintenance Plans as necessary. Staff also are reviewed all asks on the merits of five priority considerations. The five priority considerations are a necessity, distinctiveness, recently designated city landmarks, investment and legacy business and im happy to answer any questions about these priority considerations or any other review process. Ththis was built in the italianbuilt style in circa 1800 and applicant completed some rehabilitation scopes for the building including dryrot repair and painting with an estimated cost of 12,650. The proposed Rehabilitation Plan includes inkind window replacement, interior plaster and repair caus caused by exterr leak and roof repair and replacement and painting. Rehabilitation work is estimated to cost 113,000 over ten years. And the proposed Maintenance Plan included annual inspection of the wood siding, windows and roof and Maintenance Work is estimated to cost 2,880 annually the Property Owner will receive an estimated property tax savings of 14,184 and this is a 66. 37 reduction from factorbased year value. This was currently valued over 5 million and was demonstrated that the granting would assist in what otherwise might be in damage of alterations. There is final approval for the federal Historic Preservation tax incentive in 2018. The proposed Maintenance Plan includes inspection of interior stucco, roof, doors and it will maintain character to find features identified in the registration nomination registration, such as plaster details and woodwork. Maintenance work is estimated to cost 31,000 per year. The Property Owner will receive an estimated property tax savings of 66,974 at 331. 2 reduction from factorbased year value. 64 pace patomic street is a contributing building to article 0, debose Park District and a twostory overgarage singlefamily dwelling built in 1899. Theres restoration of front stairs, front door and garage door replacement and the rehabilitation work is estimated a 360,000 over ten years and the proposed Maintenance Plan including annual inspection of roof, gutters, downspout and trim and Maintenance Work estimated 4,000 annually. The Property Owner will receive an estimated prompt tax savings of 22,679 or a 76. 47 reduction from factorbased year value. 2168 Market Street is a threestory wood frame commercial building constructed in 107 by master architect august nordon in the arts and crafts style. This swedish american hall is marked 267. In 2015, the applicant performed a fullbuilding rehabilitation including seismic strengthening and the proposed Rehabilitation Plan includes repair and restoration work to the exterior front and replacement of a nonhistoric door with a new compatible and accessible door at the main entrance, replacing a noncompatible entrance and restoring bricks at the front facade. Rehabilitation work is estimated to cost 95,000 over ten years. The proposed Maintenance Plan includes any necessary repairs to the front facade windows, interior wood elements and roof on a recognize regular basis ans estimated 7 500 annually. The Property Owner is away they will not receive a savings but would like to move forward. Its 2731 to 2735, a threestory woodframe three unit residential building . Article 10, individual landmark number 276 and the subject property was designed in a bozart style by architect james frafrancis dunn. Its contracted at over 3 million and a Structure Report was submitted to demonstrate the granting assumption would assist in the preservation of the property that might otherwise be in danger demolition. It underwent a full rehabilitation by a previous owner including full repainting of all elevations, facade restoration, structural strengthening and reroofing. The proposed Rehabilitation Plan includes dryrot repair of wood elements at the base of the building, restoration of windows and to repaint the exterior, replace roof flashing and full reroof the building. Estimated to cost 305,000. 305,000 over ten years. The proposed Maintenance Plan includes annual inspection of gutters and downspouts, windows, front facade and roof. Maintenance estimated to cost 5,048 annually and the estimated property tax savings is 35,495. A 49. 46 reduction from factorbased year value. This concludes my presentation. Planning staff is here to answer any questions. Also, michael gine from the Recorders Office is here to speak on property tax valuations. Property owners are here to speaanswer any questions you may have. Thank you. Thank you, miss taylor. Actually, were there any other presenters or the other folks are here to answer questions . They are available to present, i think, and each one wanted to speaker. Speak. So we should have the representatives from each of the applicants. Ok. Maybe i could call them up or would you like to help . Sure. Since sally isnt here, we can hear, i believe, sarah for 1401 Howard Street is here. Good morning. Im sarah work and i represent the st. Josephs art society. Its a Cultural Organization dedicated to sporting the arts in our community. St. Josephs art society is compromised of two separate organizations, the art society which is for profit and foundation which is the nonprofit. Both organizations are committed to supporting artists and allowing them to flourish in their careers. We support many 501s in our space and we offer free daily tours to the public. We applied to the mills act because our walls are large and tall, 332 feet, but we take up a small footprint and plan to used funds that we can use longtem for the church. Thank you for your consideration. I have the speaker cards, so adele fang. Good morning, supervisors, im adele fing and im one of the proud coowners of 2731 to 2135 fulsome street. We wanted to announce our appreciate our home, the city and mills act. When we all moved in last year, we started putting aside for typical maintenance items with it wasnt until we started talking to the historic form and alicia turnbaugh that it appeared on our form. They are going to address the wood deterioration and curbed window rehabilitation of the street facing rounded bay, an aged roof including the dome turett around the bay and an overlooked patch growing vegetation due to site drainage. The property tax savings from the contract will help to offset the cost of the repairs and maintenance for a home and we are grateful that San Francisco offers an opportunity for homeowners like us to receive such a financial blessing. So thank you for your consideration. Thank you. Is marty benson or ted olsen here representing 2816 Market Street. My name is ted olsen and im president of the Swedish Society of San Francisco incorporated in 1875 in california, builders and owners of the swedish american hall, San Francisco landmark number 267 located at 2168 Market Street. On behalf of our board and members, i thank supervisor mandelman for sponsoring our nomination and to the staffs of the Planning Department and Assessors Office for supporting or application for mills act nomination. At the time of the 1906 earthquake, my paternallal earthquake, editor of our local swedish newspaper, was secretary of the society at their scandinavia anhall, across from the main to library. The earthquake demolished that city hall and our hall. They hired a master architect august eugene and similarly, marty benson, on our board, with me today, a former afrasier is s the grandson of the contractor, who together with his son and several others built the hall in a year. Other members of our board have similarly distinguished heritages in the society, the board and the hall and i say this because the entire board has restored and renovated the hall and all of us are committed to maintaining and funding this Historic Building to preserve there is center for the scandinavia cultures to provide a contemporary night spot, restaurant and the citys saloon. We provide occasional Historic Sites for the city and we would support your nomination and im here to answer any questions you may have. Thank you so much. And then, next id like to call gustov ligqist. Im here together with my wife and im the owner of 6 63 patomic street. We didnt realize what dire shape this was in. Its in poor shape. This, however, comes at a financial burden for hour family, the costs that we are prepared to take but any tax saves from a mills act contract, it would help to offset these, of course. Regardless of how this goes, i would like to say thank you to michelle and her colleagues have been wonderful to work with during this process and without their help, i dont know how we would have gotten this far. So really appreciate that and thank you very much. Thank you. We could go to Public Comment and are there any members that would like to speak on any of these items . Public comment right now is for items 26 and those being the mills act items that are presently called and there is not a general Public Comment period at any Committee Meetings of the board of supervisors. The next opportunity for general Public Comment is at a fullboard meeting and the full board of supervisors is a special meeting this afternoon but not in this committee. But we will take Public Comments on items 26 right now. Is there anyone that would like to speak on items 26 . Seeing none, Public Comment is closed. And i would like to move we excuse supervisor peskin from this. And can we move these items to the full board with positive recommendation without objection . Great. Mr. Clerk, please call item number 7. Agenda item number 7 is a resolution approving an agreement with a nonprofit othet Owners Association known as the civic to code 36151 for board approval on june 30, 2024. I would like to welcome the Senior Program manager for the economic and work Park Development and hell present on this item. Good morning. Im the Program Manager from the Office Economic and workforce development. Im part of the team overseeing the cbd program. This is a Program Authorizing the renewed and Civic Community district. On july 23rd, 201 2013, the boad of supervisors revised the civic center and they must enter into a Management Agreement with the Owners Association of this district. The document is a template use ford all cbds in the city and adjusted for each cbd. The following language has been added, administrative code 12g prohibits Assessment Fund or any other funds to participate in, support or attempt to influence a Political Campaign for any candidate or ballot measure and campaigning government code 1. 126 which was amended to state board membered of a city contractor may not contribute to any of the elected officials that are acquired to approve the contract, the board of supervisors or mayors, City Attorney or candidates for those offices or committees controlled by such candidates, officials for a 12month period. The 12month period begins once the contract is approved adding language to administrative code 12l which relates to the Public Access to meeting for nonprofit organizations and should be noted that the Community Benefit districts largely abide by these ordinances. The general benefit district for the civic center, cbd is 4. 80 . If approved by the full board, this will get Assessment Funds to the cbd in early january, and we will develop 3. 6 million in the fiscal year. Thank you, mr. Corgus. Anany members of the public that would like to speak on this . Seeing none, Public Comment is now closed. And can we move this forward to the full board with positive recommendation without objection . Great. Thank you. And mr. Clerk, please call items 8 and 9 together. Agenda item 8 is a resolution approving a memorandum of understanding between the city and county of San FranciscoHousing Authority regarding the reorganization of the Housing Authority, ratifying and approving a loan, not to exceed 20 million to the San FranciscoHousing Authority and any action taken in connection with such loan, granting General Authority to the mayor and the Mayors Office of housing and community development, to take actions necessary to implement the resolution as defined within it. Agenda item number 9 is a hearing to review the performance audit of the citys assumption of the housing authorities essential function, prepared for the board of supervisors by the budget and legislative analyst. First up, i would like to welcome mr. Campbell from the legislative office to perform on the San FranciscoHousing Authority transition. Miss campbell. Good morning. I have a brief presentation on our audit of the citys assumption of the San FranciscoHousing Authoritys essential function, but also, ill speak to the resolution before you approving the mou between the city and the Housing Authority and retroactively approving the 20 million loan from the Mayors Office of housing to the Housing Authority. So, our audit scope is to sort of look at the impact of the reported financial shortfall of the Housing Authority in 2018 and do a prospective analysis of the citys assumption of the Housing Authoritys functions and just sort of context the Housing Authority, the two major roles are the oversight of Public Housing and of housing vouchers. Theyre about 12,000 vouchers and half are tenant based in which tenants can use the vouchervouchers to rent in the e market or ones which pay for an actual housing unit. So in context of when the audit started, prior to the audit motion, the Housing Authority reported that up to 30 million shortfall in their Housing Voucher Program and a number of contributing factors that we lay out but one was, in fact, problems in the problems made by the Housing Authority themselves. To the shortfall, there was up to 10 million in funding to become available from hud and another loan from the citys Housing Trust fund up to 20 million and that loan, again, is part of the resolution retroactively approving that loan. So, in march, the hud sent a letter of default to the Housing Authority, basically saying that the Housing Authority was in substantial default in both Public Housing and Housing Voucher Programs. The options available at that time, then, were either for the Housing Authority to be placed into federal receivership or for the city to assume the essential functions of the Housing Authority and then for those functions to be contracted out to third parties. And there was a preliminary mou between the city and Housing Authority in april of this year and then, what was submitted to the board of supervisors in july is the mou before you now. How, there were changes between that july date and what youre seeing today and well talk about those. So we identified three major risk areas in this audit. One was the risk of an ongoing shortfall in the Housing Voucher Program and theres a structural deficit in hud Funding Program so each Housing Authority, because of this subshort fall, especially in a place like San Francisco where theorizing quickly. Theyre rising quickly. They indicated there would be sufficient funding to cover this but this is a future ongoing risk. With the second area of risk was the seventh package in the mou before you and it provides for the city to collaborate on a severance package for the edges who wilemployees who will be ted as they are contracted out and the city takes oversight. We estimated that based on 194 employees in may, and about more than 40 of those who were lookterm employed, the cost of the package could be up to 5 million and now in our discussions at that time with the Housing Authority, our understanding was there potentially were sufficient reserves to pay this, but it was not absolutely clear. So that is definitely a risk area. The third risk area is a pension liability, which at the time of the audit was and the retiring Health Benefits estimated at 61 million. Again the projection showed through 2023 that there would be sufficient payment in each year to pay down that liability to about 40 million. After 2023, it was uncertain how that liability would