Youve read all about the city and all the different groups here the gaze and the asians and the latinos theyre coming middleclass whats happening to us. The population is the bottom of the San Francisco no one speaks about that. Im not surrounding e sooernd im trying to use the best tactics. The cacs needs to be changed and Community Reform is what weve got to do thank you very much any arrest speaker card there are no speaker cards. Id like to open it up for comments. One of our comments of peter cowen was read right 60 unit at 60 percent a m i now one hundred and 10 percent a m i with 40 units. Hes also right this project is about a policy will decision and not about feasibility by the way, both somewhere could work on paper. I know that one of my colleagues had more discussions with the staff and the potential developer and community but i was positive to remember that with low income were down to building moderate housing. The division of moderate is a little bit different but work with housing is the most difficult type of housing to financed because theres not as many tools at the city and local government level. We have the opportunity to get investment to the tier thats in between moderate and what we call market rate. I challenge everyone to think about it if you havent already and present it to the commissioners. Commissioner i was interested in the partnership with the nonprofit based developer can someone comment from the staff comment open that option why is it not on the table. Should not be on the table . Good afternoon sally deputy director. Yes. That was one of the alternative options in front of of us. One end of the spectrum would be a traditionally Affordable Housing project serving the low income like we do with your standard this is developed and used tax credits with the low income tier. We looked at how to serve the moderate income folks and the tax credits are not a feasible tool. Those are the two ends of the spectrum and the financing tool and then but we had the moderate protect intent of the organization pa and how do you make that work and you make that work internally within the project. So this part of our analysis yes, but as you saw from our presentation were recommending the moderate approach for the income tier approach is that a way to say the staff concluded the partnership with the Community Based developer was not feasible under the circumstances . No to echo the directors feels we do as we do our Affordable Homes its partnering with a developer to serve its a different financing structure. I understand thank you. Commissioner ellington. With the im just exploring the different options in my head when i think about the low Affordable Housing and the physical constraints with the space can you talk about specifically if you were to build avon this site would it be comparable to other market rate units or projects that are in omission bay. Are you asking if we built one hundred affordable projects. Right. Theyre a High Standard and consistent with the project in mission bay theres a number of forcible mission bay projects that are at market rate but no significant clrgsz that are expected to be on par. Thank you im going to reframe that question and get back with you. Thank you very much any other questions. I have a followup question on the rent. The rentals rates for the units for the moderate level units. I wrote them down fast but i understand 2,400 im sorry could you repeat numbers please. So based on 2013 numbers the affordable would range from 24 hundred to 3 thousand from a one to 3 bedroom and for the market rate for the other units is 3 thousand to 4 thousand 2 hundred. And the rate you get to you work backwards and you look at thirty percent of that gross income and that gets you to how much the monthly rent b will be its in the 24 hundred flat theyll be upgrading it periodically. Yes. Thats correct and those are the assumptions that are tied to sorry want to clarify those are for one using a family of 4 and they change smaller will households have smaller income but. The table goes from one hundred 10 down. So they circulate based on that youll have 4 people in the it make sense from a rationale standpoint. Thats why people ask that. Yes commissioner mondejar. I think ms. Reilly can you address the decision your rem this can you explain or address what mr. Cowen has raised the change from homeownership to reverend or rentals. Ill do a quick overview and invite up tim. So ownership and rentals are two markets. One is a difficult site for ownership because its restrained its competing with other buildings that are not up against the freeway and have more amenities. Also the cost to own theres a 50 percent different between cost to own and its cheaper to rent so theres more of a subsidy and the larger cost difference so if you are looking at having the numbers of the units to subsidize and the moderate rates there are other public subsidies available to the market rental rates for the affordable units and with the sales prices to get the level of subsidies from those market rates to subsidize those for sale units with the disconnect with the cost of ownership versus the cost of renting you cant get the same number of the units it didnt pencil out but im going to invite tim up to elaborate or correct any figures theres basically several factors. Number one were impacted by freeway so when you think about condo sale prices you have to look at the other comparables and when you do the math looking at 235 and berry and other mission bay north and south housing given the packet its a different figure. Youy r require 15 to 16 sale prices to get to the feasibility number. We have run, you know, the runup in pricing and when he do that the World Innovation and the affluence in the city is the entire backdrop has led to price increase so the calendar year prices are backed in and well require a further 20 percent for the units in this projecting program because of the highrises. The gap is acquit large and its historically an unprecedented number not on the impanel up and over a Million Dollars next to the freeway. Any other questions thank you. Id like commissioner mondejar i want to address a comment of one of your other comments that mr. Cowen said the 8 hundred and 20 percent a m i that gets back to were having policy discussions what is the scenario thats peripheral. Lets say there recent a rare of a family of two working adults and two minors who are dependents thats two people making between 65 and 59,000 a year together. Its a policy decision thats a level of which we should be encouraging or in policy or in ways of building homeownership or rentals. My personal feeling this project represents a Good Opportunity for a middle income family to stay in San Francisco to raise their family and rent. I dont want to citywide homeownership is the goal but for this project this presents a rare opportunity to allow middleincome families to live and raise their families in San Francisco. I wanted to get to that. Im sorry, i interrupted you. Commissioner can you talk about project manager about the other low income opportunity in other parts of mission bay. Sure actually madam secretary could you go to the overhead. This is our last Affordable Housing site. In the south were going to draft one hundred and 8 agency sponsored units and those are on sites we have one hundred 50 under construction on block 63 and the next item for an additional 2 hundred units and well then across Fourth Street will be an additional entire block of Affordable Housing between the two is 3 hundred and 50 i can do the math 8 hundred and less something on other sites that includes block 6 and in the next few months well have the partner on broadway board and 3 east and 9 a and b about e will be our great waterfront views. Those are Affordable Housing and also block one in front of you back in may that one would have the 53 inclusionary units if they going for rental. Just a point of clarification ms. Reilly the balance of the projects theyre up to 50 percent a m i all the way from spofd no no objection too on the partnership we have with dph up to 50 percent a m i. We can get one hundred and 10 but because we dont have the financing it goes to one hundred and 10 but typically up to 60 percent because theirs notes o no other funding. So for this particular project were filling a specific need for the moderate income housing. Yes. This will be the only location because all of our projects require significant subsidies with the dissolution we have no other access so if we cant take advantage of the bond financing thats 60 percent less theres no other Funding Sources to help fill the significant gaps you into going get into with the moderate rate. Thank you. Im supportive of the moderate income Affordable Housing. Narng some the rentals. My concern is perhaps are the marketing of those units. I for one know plenty of folk in the city who would love to rent and those who are native san franciscans living in other part of the bay area. Many of them are latinos. Latino professionals would be happy to rent in the city but are unaware theres any Affordable Housing they equate that with the very low income eligibility and theyve been told they go quality for some opportunities interest im interested in how the marketing of those units it going to take place is this known all the details of the marketing will occur arent known now but there are guidelines inside the o pa well follow that speaks to beyond the Certificate Holders and there advisements in various papers and the population your addressing via those outlets they talk about 15 b. C. Being the maximum number determined but were hoping to working with Community Groups and working within agencies of cdc to make sure were addressing the full population were getting the word out and going above and beyond whats required of the organization pa. The details well have to work through but its our intention to make sure we address our concerns. Thank you its a larger question turning out to the certify holders how they do their lotterys and. Right well have the meeting with o m h next meeting. Okay. Are there any other questions or comments. Commissioner mondejar i want to go back to policy are we moving towards more rentals instead of encouraging homeownership. No. Do we have a is anness. I want you to expand more. Sure. Sure sure. I think theres room for the developer and staff to come up. In terms of the policy questions i was talking about income levels. The rental versus for sale does sort of come down to the numbers because the proceeds of for sale from the rental income is what supports the property and because of the Market Dynamics its not interchangeable. You dont get the same money. Thats a pro forma a question. I was trying to make it not been homeownership bus its the opportunity thats present in this lot. The questions are more about the income level thats supportive does that ammunition. Id love to have the developer come up and talk about this but i dont its not a decision we can make today because its about performances and whether or not the project is feasible. To this project not today i know were not talking about this project now but the bigger picture. Thats a bigger question because where we are as being the Successor Agency and whats the process. Well have more tint when we talk abo talk about hunter point the city manager mentioned that. Through the chair to provide some context for the discussion commissioner mondejar i and the commissioner mondejar were having the owner participation agreement the moderate as defined went up to one 10 and thats agnostic whether rental or so far sale. So along king street very have various names avalon bay has two advertisements and avalon bay provided for moderate units that excited today and some that excited at the lower tier. In the beacon that has the Bowling Alley and the bottom floor of hundred units that two started some at low and some at the moderate income levels and a register project and over time it became a for sale project. There was a conversion and an First Amendment to the o pa were they were up to one hundred and 10 percent so the requirement of mission bay moderate whether or not rental or homeownership it was a production. And as it worked occult as staff described and for financing purchases the master developer and other developers were allowed to agree gate for the particular very low so you saw in the chartings why is it at the cdc units its low income units its atkins an agency gas station of the low and through the years the neiman or 16 years theres a opportunity it didnt work as a for sale site at the questions or comments on those scenarios. Id like to call for a motion then on this item if theres noting no other comments or questions i make a motion. Thank you very much is there a second and a second. Thank you very much. Please call the roll. Commissioner ellington. Commissioner mondejar. Commissioner singh is absent. Commissioner rosales oar commissioner johnson. Theres 4 is and one a bit. The and continental approving a combined basic skeptic design for Retail Project on block 7 west on Mission Bay South and in amendments to the blocks 11 and 12 major faces pursuant to the agreement with the b lc and the project will carry the resolution and action madam director. Thank you, commissioners that is another mission bay item youve taken a series of steps over the last 6 months block 7 west which is being prepared to be developed by the Chinatown Community corporation and what you have before you is the specific design with that, id like to ask Katherine Reilly project manager to present this. You want to hold it laughter . Thats very nice just dont drop that. laughter . Turns out those things are not cheap. Go ahead and hold it good afternoon again. Thank you director and good morning. Im katherine. This last item is a combined plan for affordable rentals. Youve reviewed this back in december and june of last year. After i give a brief overview the developer will present the promise. So this project will be developed with Chinatown Development corpses. Its located on block 7 west which is a 1. 8 acre parcel and you bound by mission bay north to the south. And Fourth Street to the west and it pedestrian views or walkway on the east that divides the parcel which youve heard about in the past. It includes units above ground retail and this is increased to one hundred. There will be a one hundred and 6 bicycle parking spaces. This is 3 hundred more spaces than the parking requirements. There will be open space areas. The project is very centralizing located for transit and spop spop. Youll have a stop flovr in front of the building and a 5 minute walk to a cal train and theyll be able to take advantage of the bart shuttle. When the project is open the new childrens park will be half a block away and will be up and running when the project opens it t its doors. I want to invite kevin heel review the design with you. Good afternoon, commissioners
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