It is can use public dollars to leverage some kind of change even if its a small one. If we could start for how things operate in terms of their dancing of housing and not just affordable but housing in general. Yes. Were working hard to bring all parties together to get the best possible benefits for San Francisco, and we have some leverage by being able to take advantage of obligations the bank has and our developers , the Market Rate Developers are very interested in participating, especially with respect to our so we agree with your goal, sir thank you. Shifted supervisor moller supervisor moller i knew we have a very detailed and excellent report from our chief economist, mr. Egan coming up but i just had a couple of quick questions. You mentioned the acceleration of Public Housing in which i wrote and sunny day. You get a sense and one westside courts you said maybe transforming every single Public Housing unit get to know what, and website court, the smaller one closer to supervisor, and my district get into phase 2 development and will be completed by 2018 good wow. Thats great. Its a rehabilitation. I know with our hope six projects the displays a lot of people the new plan for Public Housing development is not to displace, but you mention the people be temporarily displaced good im wondering if you could just talk briefly about how we ensure that it doesnt push people out and they never come back . Well, the best examples are the relocation that happened in huddersfield and Alice Griffith. We were able to build new housing with the existing residents staying right on site, and those residents moved into the new housing. We demolish the housing that they vacated and it was a process which we are finishing up. Were quite happy that its underway and will soon be done and the residents there will have brandnew units. Sunnydale and potrero are more challenging in that respect because they dont have the land mass and the large vacancy rates that hunters of you had in terms of Ghost Hunters you had large vacancy when we began work there, but Alice Griffith had adjacent parcels the week goes on first that the Housing Authority we were able to purchase those and and assemble the site. So, it is trickier. What we are doing at potrero for example, is actually buying a parcel across the street. Thats going to be phase 1. Will build new. Will relocate there. We are planning, at a certain point, right now sunnydale and pajaro are 100 occupied. Once we really start construction, will start social have some attrition. That way we onsite relocation. Now, there may still be a need for temporary offsite relocation, and those plans are not at all settled. We want to do what is best for the residence in cooperation with the residents, and thats why this buildout plan is as long as it is. As you know, other localities and even San Francisco and some of the very early hope six deals did move everybody offsite and it wasnt a great return of tenants and we dont want that for sunnydale and retro i just want to agree with supervisor avalos on the need to look beyond the cities core for even towards the western neighborhoods for different projects. I like the idea of mixed income developments. Acquisition and rehab approaches. I wanted to just as quickly about that new middle Income Rental Program. I want to thank jeff buckley for keeping my office well informed about the bond as it moves forward good i have some concerns when where increasing the ami percentage for middle income, and i potentially hit lower income renters or lower income people against but i clearly agreed theres a need for middle income bands or our approach to prevent displacement or help house people. Could you give us more of a sense does i think he said the vast majority would be up to 120 ami and when you look at larger families, you would probably go to 150. Im wondering, what are the percentages are looking at how can we ensure that theres equity built in to our process to look at our building this new middle Income Rental Program . Resident vast majority of the funds would be used for households at 121 below, thats because all of our low Income Housing thats financed with tax credits is capped at 60 of area Median Income. Anything over that doesnt qualify for tax credits. So, you can leverage those funds. Thats really the bulk of our low Income Housing. Surly, Public Housing. We have 80 million in Public Housing. The 100 million in low Income Housing. The low income piece will go up to 120 in some circumstances because we have the plan to expand our small sites program, which allows residency up to 120 of area Median Income. As you know, if we were to help the developer purchase an existing rent control building, theres no means testing to live in rentcontrolled housing. May have someone who makes 10,000 a years on social security, and someone who makes 100,000 a year living right next to each other. We want to use those proceeds from the higher income, 120 ami household cross subsidize the extremely low income household and i will create a feasible acquisition and rehab development. Now, for middle income, we expect that most of the funds that weve allocated there will go to household about up to 120 ami. The middle Income Rental Program in particular, we are estimating that would allocate about 20 million for that, assuming we have a test with that program. But, we know theres an affordability gap for households that need larger units. Two bedrooms, freedoms, even for bedrooms. At 150 ami. Again, for family of four is micro gross income of 150,000 or so. So in hybrid markets for those with larger family units, we dont want to penalize a family that cant compete in the marketplace for that threebedroom units. Just the way 120 household cant compete in the market place for that units. So, we do want to offer some flexibility for middle income families who we want to help stay in the city. So, theres a very narrow band that would go up to 150 of ami. Everything else will be 120 envelope very narrow band. Up to 150. Again were proposing that for the middle Income Rental Program you could go to 154 two and three bedroom and larger units. If youre if you can demonstrate the rental market within which the housing is built is has a much higher market rate than 150. I think you just mentioned the goal would be about 29 to this rental program. Just to compare, what is new york citys program was much do they allocate for their program . Well, a lot more. How much is a lot more . Im sorry. I dont have that. I dont have at my fingertips but i can get that to you. The newark city program does have the benefit of being able to apply Tax Exemptions to the property as a whole, so they have more flexibility in their overall Building Program than we do. Because, once you exceed 80 of area Median Income you pay property taxes and that adds a lot in operating expenses. So it requires a lot more resources to go into our buildings am about i will find out how much money you are cast in that would you guess a lot more is 200 million . Just trying to understand about art the population is 10 times hours thats why i multiplied it by 10 that sounds about right but all confer with you i guess, my last question is when the budget analysis report on Housing Needs for seniors the anticipate a huge senior boom and the need for low income seniors to have decent housing. I know the theater i will Bridge Development near my district and across from the street from supervisor farrell district was an important part. Its about families. Whats the plan for the Mayors Office on housing the bond for assuring that we have enough housing as we anticipate a huge boom in seniors, where San Francisco, i think by 2040 will see one third of the population of people being over 60 . We are very cognizant of the need for affordable Senior Housing. We have Senior Housing coming online on laguna street right now, we just opened. Whats the plan in the bond that addresses the huge boom in the senior population especially for low income seeking seniors need Affordable Housing . Right. Will be using bond proceeds in our upcoming bio pipeline for Senior Housing at shotwell. Also, a development thats in the works at 24th and harrison. We are working with the cii to allocate Senior Housing as part of their Funding Program in mission bay and its a good point. When we talk about family housing, or low Income Housing, i think we often times just sort of take a shortcut and call all low Income Housing family housing, but in fact, we do want to, and will, including Senior Housing in her overall i find. With the key places in the bond proposal early would see better opportunities for seniors . Low Income Housing. The low hundred Million Dollars would include low Income Housing. We know that when seniors would have units as part of our development that are at higher incomes like 60 of area Median Income, seniors have a harder those on fixed income have a hard time meeting those rents. So, the best price point for Senior Housing is 50 of area Median Income and below. For example, for the new conception up to 60 and eight ami, the place where we can look specifically at housing that would help this boom in population of seniors that need Affordable Housing . Absolute good enough to scooby but it is. Thats where well be devoting some of those proceeds seniors can be isolated but mostly individually. Is there any thought about specific types of units. I know for the bridge theres the pace units other units dropped but im wondering what the plan is . Well, we always have senior specific services on our site. We bring in a wide range of Service Consultants service connectors. I think a good example are parcels a and c on central part weight. They both have seniors Senior Service centers on the ground floor. They very active Senior Services programming. They cooperate with each other about bringing in hundreds percussion or to bring work with tenants within exercise classes, or dance nights. That sort of like all those kind of activities so that seniors dont get isolated. That is exactly the kind of Senior Services programming that we would include on future projects. The . Supervisor avalos new questions okay. Thank you ms. Howard. Ms. Regan. You want to go over your economic report here . Good morning. Ted egan with the Controllers Office bit of economic announced. Opposite issued an Economic Impact report on this item and without going through every slide in detail, without high points and answer any questions you have about the specific good rpg writing this report was to examine for housing policies already in place that are similar to the Funding Priorities that the expressed with the bond package. Those four policies are constructing new Affordable Housing units, rehabilitating Public Housing units acquiring existing rentcontrolled properties to make them permanently rentcontrolled and providing down payment assistance for first time homeowners. Each of these policies can arrange a potential economic benefits. They all provide a direct housing subsidy to low income households in the city. Lowincome households in San Francisco spent an average of 46 of their income on housing. The height of foreboding target is 30 , with several of these programs if you qualify for subsidized units that the amount you will pay. So that direct subsidy can be a very powerful amount it is equal to about 6000 a year for an average sentence is the low Income Housing. Theres more benefits. The Multiplier Effects of construction in particular involving constructing and rehabilitating housing units. There could also be in direct economic benefit when the policies expand the supply of housing and services go where they reduce the demand for market and private Housing Market. The unsubsidized Housing Market by placing more people in permanently Affordable Housing. So, we considered these different types of housing benefits as they relate to the four policies that i outlined. We found really, each of the four of them have economic benefits that clearly exceed the cost. We calculated just the direct and indirect subsidy of building new Affordable Housing to equal about 400,000. The cities cost of the construction Affordable Housing is now running about 200,000 a year. So, thats a good situation with the benefit exceeds the cost. Quantifying these benefits were rehabilitated Public Housing is a little bit harder because the units are in a variety of different conditions. If you simply look at the Construction Spending alone on rehabilitating housing, the Multiplier Effect of that exceeds the cost the debt finance. So thats an economic win simply in terms of the construction. In terms of the acquiring went rentcontrolled properties make them probably rentcontrolled. In a policy like that, the real vast majority of the benefits are the direct benefits. The future benefits them up or reduced rent for future tenants. We also found under likely range of Interest Rates and reasonable discount rates that the benefits of that policy exceed the cost that incurs as were. So thats a beneficial policy. Finally, the down payment Loan Assistance Program is essentially a loan to help how souls reach a down payment without resort to private mortgage insurance. This is repayable upon resale in which they receive a piece of the equity. Given how much housing prices have accelerated, sluggy this a problem the last we generate money for the city because the value of the share will increase over time on average and so this is something that will both benefit middleincome homeowners as well as likely pay for itself and then some from well into the spirit on that basis, the four major policy priorities the bond outlines all have clear economic benefits and so on that basis we conclude that you overall package would be beneficial as well. Thank you. Supervisor avalos i just want to highlight these are public dollars and helped trigger local hiring. I think its important to actually include that in your import. Since it is a Major Program of the city that would actually have a local hire program. The maters been very supportive of it and engaged the city administrator in the city build program. So, i want to assure the future of economic report and pastor board to include that as well if there are local dollars that stay in local neighborhoods there are people in San Francisco in the construction field who receive jobs because of it and we can probably see an extension of hiring for local residents with that. If you drive it to see that if you could include that in reports its a fair point, supervised the widow call out that specific policy would you try to quantify the benefits of the construction the Multiplier Effect in most woes to come from the fact that the workforce in the city. Covering that in that sense okay. Any further questions or comments . Thank you mr. Reagan for your report. At this point will open to Public Comment on item number one. Anyone who wishes to publicly comment and it else is going up on the far side there will be twominute. San francisco housing problems. Big trouble. [inaudible] summerlong treasure island. Marine avenue. He asked very. New myself i spent some time that housing structure. [inaudible] Public Housing. Very big. Very wise though. Next speaker, please. Thats a hard act to focus my name is marie goetsch i listen to your reports on this bond. It doesnt build anything. All does is acquire more land. Whos going to build . I can see those ideas to myself voting for it. Its a tenderloin housing clinic going to control everything with this bond . Are they going to just decide . I think housing goetsch we a