project area to know how we're doing and a summary of what we're working on and a work plan in '17 and '18 which is what we're in right now. just to recap, the mission of oc ii and the housing division is to create affordable housing pursue ant to our state, the state department of finance and approved enforceable application s in our three major development projects mission day and trans bay and the remaining housing obligations we had after dissolution we've completed those in the fiscal '16 and '17. so as you know in 2014 the mayor rolled out a goal to create 30,000 housing units by 2020 one-third of those are to be affordable and ocii is a key component to achieving the plan and ocii's housing obligations will result in almost 3,000 affordable units by 2020 or one-third of the mayor's goal. i wanted to note in the chart you can see that the stand along funded units is $1,069 that's half of what the ocii funded units what we intend to deliver by the end of 2020 and that cat gore see what we have control over because we're overseeing those as compared to the inclusion ary units which as you know are delivered by private developer so we have less control over that. so just to recap, who we're serving, we are serving primarily very low and low income households and that range s from an example of 50% four-person household just to give a sense of who we're serving. they're the income cap there is $57,650 and we go up to moderate income for example in our trans bay one home ownership project we're reaching folks at that level and also our inclusion ary units in the moderate income category and we get questions on how we program specifically the affordable housing type for the affordable housing parcel >> 740% is family rental in the period of 2014 to 2020 -- 70%. in terms of doing a significant amount of affordable rental versus home ownership, some of that is driven by financing sources that are available and we try to leverage it as much as we can especially in the rental product where we have tax credit and tax ex 'em bond financing that's our main source of funding and home ownership we don't have that at all. so he wanted just in terms of public policy, the mayor's office and city have been focusing on addressing homeless individuals and including homeless veterans and then just sort of a backstop during the national recession which is pretty old now but from 2008 to 2012, a lot of them housing production stopped and we're still really catching up so there's a partial explanation of the huge increases and market rate and we're playing catch up and the strong economic rebound in san francisco has continued and the unemployment rate is 3.3 % as of september. so back to the highlights that executive director was mentioning it's been a strong year we delivered in 16-17 we delivered 603ocii affordable units and 542 were ocii funded stand alone and 51 were inclusionary that basically touched and effected 1500 san franciscoance so it's a huge significant impact and it's something we should feel great about. other activities we added housing team at ocii adding a new housing development specialist and we also implement ed the certificate of preference survey and you've heard about in the past and will hear more about and my presentation will be followed by a presentation on c.o.p. from both pam sims and maria benjamin so i'm not going to touch a lot on the c.o.p. and marketing in my presentation and so we are continue to go accelerate affordable housing and we have 1400 units in construction and active pre development so it's really a big pipeline that we're working on. touching back onto the c.o.p. we had strong results and we're seeing the payoff of the early marketing out reach that we've adopted. so just a couple of -- just a few kind of bigger issues effecting the role that we're in in terms of affordable housing in san francisco, and a lot of this we've touched on in the past that you already were aware of but we've got extremely high construction costs and as we go forward we're finding it's a real challenge so we're spending a little bit more time getting creative on ways to address the high costs and so the -- you've heard we have the cost caps, the state ride cost caps in place by that's the tax credit allocation committee and california debt limit allocation committee. one thing that is live and in play at the moment is tax reform the house bill includes the elimination of private activity bonds and those of our tax ex 'em bonds and the way that we can access 4% tax credits so it's, we're hoping that was a oversight because they left the 4% tax credit in the house bill however in the senate bill, private activity bonds were left alone so we're hoping during the reconciliation process that private activity bonds will be maintained and it's a big scramble with a lot of the deals that are using which are basically all our deals that are using tax ex 'em -- exempt and they hope that fire drill will be for not because it's a huge impact. i can talk more about that if you are interested but we should find out in the next couple weeks. so in the event that we lose that as a funding source that will have a big impact on us and we'll have to essentially make up that difference and that subject to future legislation, you know, there could be some other fixes that we don't know about yet. >> i touched on this a bit before and just cutting it in a slightly different way the clients we serve are low and low income rental and low in moderate home ownership and very low income seniors and formally homeless veterans and developmentally disabled folks and transition aged youth and this pie chart shows the break down about the percent of it's a low number and family rental the 07 and supportive at 15% and home opioid at 11%. this is what the housing team does all day so we attend community meetings and we work on schematic design rerioux and approvals just like the last item you heard and we negotiate development agreements and on marketing activities and we have a housing asset protocol as we finishish our projects and transfering over to ocd and here is just a list of the affordable housing financing tools that we use on many of our projects. this mentions the past fiscal years so you can see the stand alone projects and this year it's 552 units and this is the strongest year we've had for the past four years so we're happy to there's a nature to housing development so it's never like kind of constant and it depends on the status of the things so it does tend to fluctuate a fair amount these are projects that make up the housing projects delivered through the fiscal year so there's the 206th street or the hugo in south of market and this was going to have a dedication in about two weeks so hopefully you folks can come and then there's hunters view 2-a is which is 106 units and the mission block is seven west or 588 mission bay which we already had the opening dedication and alice griffith phases 1 and 2 which is actually really exciting, that's the first delivery of new housing and the phase 2 of the shipyard and candlestick point. the following chart is our inclusionary portfolio and this shows the 51 units delivered and it's shown by project area. and these are the inclusionary projects that make up the 51 units and there's known as mission bay by windsor and then 1550 frank len from the western edition and two projects on hill top at the shipyard phase 1. and these are a couple of charts just showing our obligations for the ocii funded units. and these are over our obligations so the majority of what we've got the largest amount son the shipyard in candle stick which is mission bay follows at 32%. this chart shows a break down of the deliveries in the ocii funded units by project area. if i push things out further we have photos and a summary sheet of the projects completed and this again is bill, community formally known as the hugo and that was finished in december of 2016 and here is hunters view phase 2a finished in february of 2017. and this is 1450 franklin it has the nine inclusionary units. and that was finished in december of 2016. now project area by project area the candle, hunters point shipyard and candle stick point in phase 1 we have 27% of the total housing units will be affordable and in phase 2 it's 32%. this is just a map at which i've seen many times. a big component of this plan is to revitalize the housing project and it's well under way. so there's charts for each of the different project areas and essentially it is showing what the opera gays is up -- obligation up front and affordable to the total number of and percentage of housing units delivered so for example in this case, what the obligation is 27% in that shipyard phase 1 and the numbers are exactly 27% so we're right on track in that case. and in phase 1 here is a couple of project sheets for the in collision ary projects delivered in phase 1 and block 53 and also block 54. and then we've got the shipyard phase 2 candlestick point the same charts are included and you can notice on the build out that the plan calls for 32% afford able this chart to the right is showing all that's been delivered to date is affordable at alice give and no market rate housing that started construction in phase 2 or candlestick point. a couple of slides showing alice phases 1 and 2 which are complete. we will have a dedication ceremony in february, so we're looking forward to that. and then alice griffith phase 3 is under construction and it is actually finished we have the temporary certificate of ok occupancy last month so that's super excited and moving on to mission bay, as you know there's two plans mission bay north and south and we've got about 30% of the combined plan areas will be where this residential units that will be affordable. and then this chart lists other amenities and other parts of the neighborhood. in mission bay north our affordable housing, all of the market rate housing is finished and it's built out and these two charts show what it was going to be at build out and what it is now and they're the same because it's done. so that achieved 24% affordable. ok and then the last, the final inclusionary project in mission bay north and this is the one that was known as aviva and now it's mission bay at windsor and we have median income finished in november of 2016. and moving on to mission bay south, these two charts, this is telling in that the goal is to have 35% of the units affordable at build out and on the chart on the right you can see where we're at 15% this is a reflection of a couple of things and one is the rapid pace of the market combined with the pause that we took due to dissolution but we're catching up rapidly and we have 6 east under construction and there is 3 east that you just approved the gap loan and ground lease that's going to start construction this month and then you will see the sematic design for that in march and then there's mission day south block nine and you will be seeing that loan request in about two months. so mission bay south # west -- 7 west this is one of the completions and then mission bay south 6 east under construction i just mentioned. and 3 east this is the project that's going to have both low income families and formally veterans and expected to start in a couple of weeks and then 6 west which is going through a semantic design process right now. ok, the last project area bun least is trans bay and so this is going to have 4100 units and 35 will be affordable at build out. and this chart shows the right now we're at 32% over all is affordable and renee was the first project that was finished and that's 100% affordable and there's soleair which say market rate project and trans bay 6 is also finished. and trans bay 7 is very close to being finished that's supposed to get a certificate of occupancy in february. 119 affordable units and we're excited, marketing as well under way on that project there's been the lottery and efforts. >> this is a work place summary in fiscal 2017 and 2018 which we're in right now and we're going to be transfering the alice one and two project over to mocd and phase 3 is completed already and phase 4 is under construction and we'll start the initial pre development planning for phases 5 and 6. and candlestick points block 10a and 11a and you know about 10a in detail and 11a is coming foray approval in january or february. and the developer selection for 52 and 54, we anticipate that for february. we got sub submitals and we'll work on a draft for block 56 and that won't be issued until the following fiscal year. and mission bay we're going to transfering the assets for block seven west and i went over and i think i already went over most of these already. and then i will say part of our work plan in transbay to get an r.f.p. four blocks to east and west and we'll do the same thing we're doing more for the two separate projects or that's the plan right now. so we are accelerateing the housing plan through the use of our bond proceeds we were able to access through s.d.107 we have a few r.f.p.s we'll work on in fiscal 2017 and 2018 and any r.f.p. we issue will be the next one commission all i see is a draft for that. and then we'll start a draft of block 9a in mission bay and here is a map of where that is, it's a really great site across from a park. and here is a context map for block 56 and shipyard and they're working on that site. the transbay to east and west you've got transbay block one across the street under construction and block 6 on the other side which is finished. and then transbay block 4 we are working on in negotiations right now with the developer on that project. so a little couple of slides kind of providing an overview of the s.b.e. program and we've got in fiscal 16-17 this was 453 afforded contracts and nine projects with ocii developer partners and over 154 million or 35.7% were awarded to sbes and the my chart disappeared. >> someone ate it. >> and just women and minority on firms the received 48.7% of professional services and construction contracts. >> nice. >> and so you are going to be hearing more about the c.o.p. in just a minute and as a reminder we have an merve dumb of understanding ocii does with the mayor housing development development and the out reach and marketing ocii sponsored projects and the as i mentioned before, ocii has a senior development specialist working as a marketingly a on and it's been really helpful and impactful. the ok pack soon preferences which we talked about the cop holders are always have first preference and we have affirmative out reach to cop holders and strong results in fiscal 16-17 and we have followed by a preference and if pending the discussion neighborhood residents preference and after that there's san francisco residents or workers. maria can give you the update on dalia, we got to use dalia on transbay block 7 with a lot of success to date. just to mention, just to remind awful us the housing team which were grateful, for the work of jayna cyst ant development specialist and elizabeth senior development specialist and gretchen heckman, kim, development specialist and pam sims senior development specialist of marketing so with that, i'm happy to take any questions. >> do we have any speaker cards madam secretary? >> yes, madam chair we have two speaker cards, oscar. >> oscar james. >> it was for the next item. with the certificate of preference. that was my card so i'm sorry for putting it in for that. >> oh, ok. you can call me on the next item please. >> ok. >> aish washington -- ace washington. >> listen, this is quite interesting and i'm going to try to do this all in three minutes and make it a para sell so when i get to speak on what i speak i don't have to just hammer down hoping we can have a common ground on record to say well this could be the first of its kind and speaking on the issue, affordable housing, which is one of your obligations that you've had with the governor brown but you don't hear nothing, i keep repeating myself because that's the way it is. you have nothing indicating nothing about the west edition and the housing. your obligation from 1948 when justin herman came and wiped himself clean. but then here we are in 2017, what does this mean? you all skipping all over town. you regained a new identity. ocii. but that's a big lie, you are still that same agency and please it's not you personally i'm just doing this practices, excuse me, because it may be i'm so serious i might, when i talk i rhyme and i go joking because this stuff is so serious. you don't have to be curious. anyway. so getting back to what you talking about housing thing it's really going to have to be rearrangeed once i get our identity and this housing thing with ed lee. i mean he boast about this years ago and escalate housing whatever it is but you got to remember, >> that stuff was before he came on board, that was best ppp, that was before a lot of things, it was the revitalization and it was a lot of things, and oh by the way before there was a c.a. c., there was h.c.e. because you know who put all the c.a.c.s together after the way pack, when i came back willie brown put c.a.c.s the first one that failed everybody was in the western edition. the c.a.c., but there was placed everywhere else buffer your development. we're going to have to replace ment that and there's a place called community reform. don't rule that out later. i got solution to and solution. anyway, housing, that's a big issue. ya'll going to have to take kaur right g-form you do anything. peter cohen. good afternoon, with the council of community housing and organizations and i just came today to compliment you again on a good end reports it's helpful dodge and i want to thank staff for the hard work and i think our organization pushed for this and speak to its value and there's a lot of information but a couple of thoughts, the track ing charts, which think jeff white attributes specifically to my push of track ing the progress overtime and these very, very large re development areas and this is how we can keep track of institutional memory, these are stories that are being told about the success if you will of these very large redevelopment areas and it's one way to kind of not forget that this is a long story and keep track and each individual project but we argued we need to have the small stories, each one is human scale and it is something that makes us feel the value of our work but the big picture is how are we doing so i want to emphasize the value of those tracking charts and see where market trends like in mission bay south are setting up the situation where we're not able to keep up with the affordable housing and it raises questions about can we do more to make sure that the percentage of 30% or 27% is achieved at a sustained level so we don't have bottom points so we're down to 15% but it allows you to use that as a metrics, what do all these numbers mean, mr. james made an interesting point, it's who is doing the development. this is about building and sustaining capacity of community based organizations. we have something still very special in san francisco with a whole cohort of community-based developers. and affordable housing developers those that have the capacity to be a lead developer but also the local partners that they work with like the y.c.d.s , that is really the hallmark of san francisco's affordable housing movement and the numbers are one thing and we put up a lot of numbers the best in california and arguably the best in the nation and numbers are different than both the people who benefit from the work but also the organizations that we're investing in that are community based local organization that's have history in the neighborhoods and are accountable to city hall and to the neighborhoods and i want to emphasize to you folks this agency puts out most of our city 's affordable housing right now and it's an opportunity for you to see who you are invest north to do this work institutionly as well as the folks benefitting from the housing itself so thank you for the good work. >> madam chair i have no speaker cards. >> thank you. >> are there any comments from fellow commissioner singh? >> on page 32. >> the report? >> 40 acres. >> yes. >> can you explain that to me? >> the former owned state parcels? for transbay? >> you know, affordable units obligations status. and there's a first 40 acres in downtown neighborhood. >> sure, yeah. so this is the transbay the re development project area of transbay and there's two zones and there's zone one and zone two. zone two is where ocii has district purview and where the formally owned state parcels are and those are the parcels that are being turned over to ocii for development of affordable housing and it's the total of the stay on parcels are about 1d over all is 40 acres and that's where the transit terminal also is. >> we have lots of work. >> i want to clarify zone one. >> i do not see 40 acres, lots of acres in downtown you know. i never see that. >> it's a lot, i know. >> we own them. [laughter] >> we hold them in trust. >> ok. >> ok. thank you. >> you don't understand me 40 acres are. >> i think yeah and they're identifying what is geographically. >> we have a great a map to you and if you like that map bev a perfect map that describes the whole area. >> so in 40 acres we're going to go and they're the only 4100 units. >> that's right, over zone one and zone two. the 4100, so with the zone one and zone two you will have 4100 russ den shall units and out of that number, 35%, are going to be affordable. ok? >> yeah. >> the redevelopment incorporates existing built out downtown and our work program is not going to be impacting those blocks and those are fully developed blocks and the focus of ocii is just primarily on the formerly state-owned parcels and but our work is the ten acres in own one and it happens to include existing downtown so it's a larger geographic district where we are doing focused work. we have the locate of that. >> so those are mainly along foal some if you can picture back to the freeway those were these are cal trans parcels used to support the freeway and its infrastructure and after the 1989 quarterback -- earthquake those why taken down with a few that kind of are north of that and some of the most northern once were parcel where the sales force is on and parcel s and on howard street and trance map and identified where all these are but a lot of our work and before court and main street of this neighborhood. >> >> folsom between essex going down spear or main all the way to second. >> ok, thank you. >> i want to echo the comments by mr. cullen, this is a very well put together report what i enjoy about it that where all the pieces come together and you begin to see this collective effort of staff with the policy of the commission as its implemented it's very impressive and when you see -- it's rewarding for me as a commission er to see that how many years has it been? at least five years now right. >> many of these policies that are being implemented that we're seeing the fruits of that were born out of the thinking of this commission. and we're engaging the local workforce, we're engaging the local business and community but it will be interesting to know and i don't have all the list of smaller affordable housing developers i mean i know in areas we don't have jurisdiction over but it would be interesting to see how many of those partners we are engaging. because that's the neighborhood anchor if you will of this program. those of my comments. >> thank you, again, congratulations. i think you must be very proud of all the accomplishments and just like what commissioner rosa les was saying, i have one question and how do we determine how many are of the ain't are for 50% of a.m.i. or 30% of a.m. i.? how do we determine that? >> we made a policy shift where we had always been serving never say always but almost always serving households that were earning 50% of the very median income or less and i think we were finding that we take those to 60% area medicine yan income and to and this is a result of commission input over the couple of years to make sure certificate of preference holders have maximum chances of getting in to the projects that we've asked the affordable housing developers to do some income tiering so there's some percentage at maybe 30% and 40 and we don't have a fixed amount , we base that on the number of c.o.p. holders that typically apply and we try and match that up, it's not an exact science. so usually the majority of going to be at 60% and 50% and they'll be some smaller number or percentage at let's say 30% and 40%. the 60% also just as a affordable rental we can't exceed that because that is the limit that the tax credit program has and so if we go beyond that we can't access equity through the tax credit program. >> so c.o.p. first and then you figure out who are searching the number of units for either 30% or 450% or 60%? you sort of just snow there's no necessary leah policy within oci i? >> i will say that we're doing this and i think we're leading the way and we're requesting or we're requiring actually some income tiering like that. >> you are requiring the developers. >> that's right. like in our r.f.p. and when we are interviewing, and we're reviewing submit als and during the interview process it's something that we highlight if they're committed to incorporating that as we require >> as they typically open to it and 50% or 60%. >> they're open to it and just so you know, you include units and it's more expensive and if you have units are at that lower commit you have less cash flow to play for a loan on a project. >> thank you. >> sure. >> any other comments from fellow commissioners? madam secretary would you like to call the next item? >> the next order of business is agenda item 5c certificate of preference marketing and out reach report fiscal year 2016- 2017 from the mayor's office of housing and community development. discussion. madam director. >> thank you. this item is a continuation of the earlier jun as a reminder the early this year the commission heard on the update on the survey and so you've heard different variations of affordable housing policies and programs so this is just the annual report as it relates to the certificate of preference program and coming back to you in the spring will be the results of the survey and final recommendations to the commission. but this is an inter looed to that so i'll turn it over to pam to lead the discussion and we have maria as well. >> good afternoon chairperson. commissioners, director. i'm pam sims and i'm a senior development specialist for the c.r.p. program and marketing lie a son at ocii and i am here today with maria benjamin director of home ownership for the mayor's office of count economy and delment and sonia m cdonald with the mayor office of housing to pre provide with you an interesting c.o.p. update for fiscal year 16-17. we have have the numbers of c.o. p. hold worse have a employed and housed and information on households who have applied and have been un successful. she will talk about the program and its impact on the sub market ing phase of and she will give you a preview on going at the end of fiscal year 16-17 and the c.o.p. hold worse have been housed in those lease ups and items that we'll work on in 2018 and after she's finished with her presentation i'll be back to wrap-up. >> thank you. >> good afternoon commissioners. >> good afternoon. >> maria benjamin. it's always a pleasure to be here and i'm glad to have been able to hear that great report. ocii staff is great and it's a pleasure to work with them on all of these projects together and boy there are a lot of projects. let's get started, so, just to remind you how marketing works for tell and the redevelop and open ok pantie preferences and and the development agreement outline the marketing requirements and the development and the marketing planned is put on a template we provide the developers with a template they complete and all of the rules about the lottery and the housing preferences are all detailed in a lottery and lease up preferences manual. and we had a ton of projects this year and it's not going to get any less next year and there are many more to report to you and when you had her position come on it was in my opinion one of the best decisions that had been made and pam coordinates all of the cats and there are it's working and people paying attention in ways that they had not before and they're more in tune with things and they're asking questions that are that are going to get them housed and so we're really excited about that and the c.o.p. maleings that we send out are getting better and better and we're working with developers to decrease the unnecessary information on some of the materials and they were did the out reach materials so that our ser ser ser -- certificate of preference holders are not tuned off about sheets and sheets of words about ami and all those things that they do need to know , they need to know how much it will cost and they need to know about what the minimum income is and the rent is and i think we're really making big improvements. we send out our e-mail blast it's now going to over 30,000 folks interested in rentals and over 30,000 folks interested in home ownership opportunities here in the city and we are really monitoring the lottery process and ways, it's hard to monitor and it's easier to machine ter now with the electronic now that we've come to the 21st century with our electronic lottery and our electronic system than the circus tickets and so it's really coming to prove to be fruitful as well and now when a developer accidentally leaves out an application, we know exactly where to go and who it was and how to put it back in and what all of these steps are and where as before, if a developer accidentally left out an application it was like oh, well, sorry we can't find your application and well that no longer happens. so i feel like we're really able to step up this year and how we're delivering these units and we've increased the number of developer and leasing agent trainings and we're helping close their learning curve on the new way and and. >> the customer service timing that they have to have to accept applications by hand and or to pass out applications rather than having access to them all over the city so it's really i think ever developer we speak with that uses the electronic trotly comes away with saying why didn't we do that before and and making sure we review each and ever disqualified household, to ensure that they were disqualified for the reasons that are in the marketing plan that are detailed in the market ing plan and we spot check the qualified households just to make sure that they are actually qualified households and this is helping our developers as well with their com ployance issues and it's helping our tenants who , our potential tenants that might not have felt like they had a place to go when they were disqualified or anybody that was going to look at their stuff again and their information again and i believe that now they understand especially primarily especially the certificate of preference holders that most c.d. and ocii are going to be there for them to even if it's just to explain to them why they didn't qualify and in a way that they can understand and get resources to fix. we closed three projects this fiscal year and dr. davis pacific point and the shipyard 53 and 54 but we worked on, we brought online five projects so we were doing a little bit of juggleing here and bringing five on and actually closing out the three and it's never a dull moment. i just want to take this time to actually show you value. there we go. good. so when you see this and if you scroll council there are home ownership opportunities they're here can you sign up for the e-mail housing alert and if you've clicked here and put in your income it will tell you if there's any available units for you right now today and you click c listings and it will show you all of the listings that are currently available and currently available we've got alice griffith apartments phase 3 and it lifts the units and how many the minimum income is and that's what people want to know what is the minimum income and how much is the rent. the details of it, are going to give you all of the more detailed information about the units and maximum income limits, for two-person households, mack mum income is 38.45 a month and 46, 150 a year it tells you how many people you have to have in your household to qualify for these bedroom sizes and it tells you what the lottery preferences are for these units and certificate of preference, displaced tenants. live work and san francisco and it tells you if they allow rental assistance and it gives you anything else that you need to know about the eligibility rules. it's pretty sweet. >> very sweet. >> it else you everything you need to know about your credit history and if you click it will give you more information about credit history and it will take you to the fair chance ordinance so you know your rights under article 49 in the police code and it goes down to the amenities of the building and the project and it tells you how much the application fee it s and what is expected in to for a deposit and tells you about the neighborhoods and gives you a map and details and it gives you information what you need to come in and after should you be lucky what they're going to call you to bring in and it was all there and important, well, to know how many elemented parking spaces there are so that you can it is comprehensive and it's helping and helping our councillors as well because they're able when they have someone sitting in front of them they're able to look and see what we've got going on i just wanted to quickly go in and i know i'm going to go quickly, one more again and one more again and go back again the home ownership opportunities are listed here. the home opioid are on the website they're not currently on dalia they're set to come early next year in the first quarter so right now they're listed in a separate place and i'm thrilled we've been able to bring dalia online and people are gaining from it and we will be