Having an open house saturday january 20th between 10 00 and 2 00 targeted to the residents of the villages. Those sha that have benefits under the thr rs and will be open to all residents. At the end of november we traveled with ticd to washington, d. C. To meet with the department of labor regarding access to easements to property that improved the communications weve been having with them and resulted in the agreement on the consent calendar today. We continue to work on temporary and permanent easements well need to improve construction of easements adjacent to job corp property. Also discuss the department of labor their longterm planning effort with the improvement of their facilities. The bay bridge project Oversight Committee in december authorized the proposed retention of pier e2 we discussed at prior meetings. As outgrowth of that theres an m. O. U. On our consent calendar today thats an agreement to make an agreement. Its a precursor to demonstrate to the project Oversight Committee that theres support amongst Partner Agencies to negotiate the final agreements and anticipate bringing a more comprehensive agreement that will go through tida and the board of supervisors later this spring. We work to finalize the subdivision map and agreement for ybi and take them to the board of supervisors. And working on and work on the final map for the first subphase of Treasure Island to go to the board of supervisors later this spring. As ill mention in the year ahead, were also working on developing a schedule for the next subphase application coming in this summer. The Public Utilities commission has selected a Design Consultant for the Waste Water Treatment Plant and we are actively working with the commercial tenants within the footprint of the planned waste water site to relocate the tenants by the end of june. Therell be an onisland Construction Community meeting this evening as well as as we gear up for the Geo Technical work to begin, were preparing notices to residents, building one tenants, the marina and others about the traffic changes that will be coming up around building one. Just to highlight again the infrastructure and Committee Meeting will be moving to tuesdays beginning next week. Well be meet at 9 30 a. M. And Going Forward the infrastructure and transportation Committee Meetings will be record and available via webcast as they occur. I also want to acknowledge kay loake who spoke earlier will be take leave of absence next year and alex galavic who has been a lengthy tenure on the project will be stepping into his shoes Going Forward but kay has been a great partner and very focussed in the commercial success for the public and the Public Benefits that come from it and hes been a great partner to work with over the last four years and i certainly will miss him while hes gone. So that concludes my report. Thank you. Commissioners, are there any questions or comments . Yes. Thank you. A couple questions. Thank you for that great report. One, mayor lees last act as you noted on your report, was on the Treasure Island development. I think you were alluding to the milestones. So now we have an obligation for what was discussed in those meetings to have a time line for the remaining milestones. I think last year we knew we wanted the mayor to help further the development and by calling the agencies together. So please, it would be great for us to take what was discussed in the meeting and transform them. Im hoping by april this year we can get all the agencies still lagging behind and get them to commit to working over time to help with the time lines. Thats my first comment. Secondly, could you please can you put it in an email to us so we can note the calendar. Yeah, well send a calendar item. And a flyer. Also at the february Board Meeting i was going have sherry come back and make a more formal presentation on the name change and for both the Board Members and and you guys keep shocking people. I hope you have been a great guy, very knowledgeable and spearheading this bigger project. I hope you will consider its a huge project with decades in the making that youll come back and take over more roles around we will surely miss you but youve been a key part of the fabric for this project and we hope you will find other means to continue to be the leadership and we welcome your new replacement. Definitely too many shoes to fill. Thank you, sir. Thank you. Sharon. One question. I was wondering whether or not the house open house on the 20th, perhaps the time, could be later so it doesnt conflict with the womens march which is from 11 30 to 3 30 on the same day. Well see what we can do about that. Maybe the solution would be to start earlier. Its really intended to be a dropin type of an open house. Maybe by opening earlier will provide an opportunity for those leaving the island to attend the march to attend as well. Great. Then, bob, i have a question. In terms of the Public Utilities commit having the consultants for the waste water system for Treasure Island, who is that consultant and when will they come back to report in front of tida. The waste Water Treatment system has had so many incredible forward thinking technologies in how we deal with waste. Im hoping that those types of forward thinking procedures will be incorporated into the system at Treasure Island. I believe its a joint venture, crollo engineers was one part in the venture team. The name of the other is escaping me now. Ill coordinate with tom b birmingham and march may be a good time to update the board on their initial evaluations theyll be exploring. Thank you. Then also, kay, this say surprise youre take leave of absence. Youve been a great liaison with tida and i hope its only a leave and youll be coming back. Would you care to make a statement to the board. Thank you for inviting me. Im grateful and humbled by your acknowledgement. It has been a wonderful 12 years working on the project. Time flies when youre having fun. Its been mostly fun on the project. I will acknowledge that but it has been 100 fulfilling working on the project. Its an amazing project weve all worked so hard on over the years. You should be proud of the vision that has led us into the project and i think its a great project. Great projects only happen with a great team so id like to acknowledge the people in in room being instrumental in the project getting it where it is today and the tida board has been supportive of the project and has been steadfast in providing the vision and direction to do better. I hope we have responded well. What we see in front of us is in support of tida. On the tida staff weve had nothing but great people all the way from Michael Cohen to jack sylvain and incredibly talented, dedicated directors who have steered us and helped me focus on the onisland issues helpful in the project as well. Theres been many other staff, too many names to mention. Very grateful to have worked with all these people. I think i speak for all of us in the room who are associated with the project. To work on a project like this makes it near and dear to your heart. Its a special project. Its a once in a life time project for all of us. I think the project will remain near and dear to me for a long time. Im take break and seeing how things come but i would like to come back and work on the project. Im just taking a break from work really. Its been 12 years. I think i should take a break and i like to tell people im thinking this is my 7th Inning Stretch and stretching my legs a little bit and coming back for a few more innings and see what happens when the sunset shows up. Thank you for your support over the years and i wish you the best of luck. Thank you. The clerk any Public Comment . I just want to publicly acknowledge kay loake who has steadfastly helped develop the vision and the technical part every part of the plan for Treasure Island. Hes one of those people that tends to be behind the scenes doesnt take a lot of acclaim but has really made the Public Private nonpublic Partnership Real and puts his money where his mouth is and has gone above and beyond in terms of supporting tidas efforts. As soon as he joined the project hes been supportive of us in all various ways. Again, hes not the type of person that stands up and says, hey, look what ive done but hes done a tremendous amount to make this project what it is today and hell be sorely missed by us all. Thank you very much, kay. The clerk items four. Theres been advisories and newsletters among others. An questions by directors on communication . Hearing none, next item. The clerk item five, ongoing business by board of directors. Commissioner are there any in hearing none, next item. The clerk item six, Consent Agenda. All matters are considered to be routine by the Authority Board and acted on by a single vote of the Authority Board. Therell be no separate discussion unless a member so requests in which the matter will be removed from the Consent Agenda and considered a separate item. Item 6a the special meeting. 6b the adjustment of rates on Treasure Island and 6c, resolution authorizing the director to enter into a memorandum of standing for the Bay Area Toll Authority and for retention of the sfobb peer e2. 6d, resolution authorizing the Treasure Island directors to enter into an agreement with the Community Development onto the Job Corps Center to monitor construction. 6e, resolution for scheduled performance for the Island Development program. Commissioner the pleasure of the board. So moved. Second. Commissioner moved and seconded. All those in favor say aye. Those opposed . The ayes have it. Item seven. The clerk the tida program update. Thank you. Members of the board, ill be giving a brief update primarily relate to the location advisory consultant and ohcd is here to give an update on our collaborations with the Mayors Office of housing and Community Development. I wanted to start with the discussion of the advisor advis services contract. Well have an open house next weekend where we had our november island Board Meeting. Its an in formal dropin session to allow people to come and go as it meets their schedule with no normal presentation. Weve been mailing invitations to those john stewart residents that per our records were residents prior to 2011 because thats the target population were interested in communicating and well speak to their particular issues and were posting also general announcements and invitations to the meeting as well. The objective here is really to provide basic information on the transition benefit options offered in the thr rs and to schedule those residents entitle to to benefits and engage in a oneonone interview with arws. The objectives of the oneonone interviews are to provide information, to eligible households as recently as last august back to school night. I met a household thatd been here since 2009 and was not aware they had future housing benefits or options on the island. As much as weve had a very public process, we still have people to reach and we want to engage each of those households in a oneonone interview to provide them with information. Also to provide them information not just on their options under the thr rs and the opportunities for Affordable Housing if they meet the criteria on the island. And then as a takeaway its our intention to provide a onepage summary for the household of record of who were the household members we have on file in 2011 and their unit size based on the competition and what their options would be so they have a document specific to their headline. For our planning process it will help us verify and quantify the replacement units and the size in terms of three and four or two bedroom and plan how we integrate those into the upcoming buildings that well be constructing. As i mentioned well have the kickoff meeting next weekend. Over the next five months between now and the end of may we schedule the oneonone interviews beginning with signups of people at the meeting next weekend. But going door to door as we need to to sign people up for interviews. And anticipate providing initial summary of find at the may Board Meeting. With any outcomes or action items we need to address to fully fully implement the thr rs and tida has been working to host a firsttime Home Buyers Program on the island in may. That will be part of our yet reach effort is to publicize that. The San FranciscoAuthority Program provides information aside from the down payment available through the thr rs and is necessary to qualify for the purchase of inclusionary units for people who want to pursue that opportunity. We have two parcels. The first is going to be approved for a predevelopment loan. And it will be set aside to start the transition of the villages residents with the first project. The next project were planning to deliver is the project where were still as we discussed before, assessing how large to make that building from a range of 130 to 140 total units. If were able to finance it, theres economies to going with the larger size building and allows us to go towards our goal of transitioning larger households to new units. Well transition all the existing households as well a number of market rate households and amongst the vimages households we have 30 section 8 households which would all be able to transition to the building and any other Additional Market rate household also qualify for Affordable Housing units would be able to transition to the unit building. This project will be two to three years behind the first project based on the availability of funding. And the finalside final size we end up selecting. Completing the existing villages will require the completion of the first four, possibly five buildings and the target is to continue to construct an additional building every two to three years until weve completed the transition. Again, since a lot of our funds for development of the Affordable House are project generated a lot of this will be dependent on the timing of Market Rate Development and the availability of outside funds from state or local measures. The third building we planned to be 110unit Community Housing partnership building. That would be 100 transition of existing Community Housing partnership residents. Community Housing Partnership is the largest of our providers on the island. That building would be 100 transition units for chp households. And then for the fourth and fifth well look for the lead developer and mix of units are yet to be determined. But theyre intended to include replacement units for health right 360 units and the balance of the transition units. With that id like to turn it over to mara to talk about mohcds program. While were working on this, its a Good Opportunity to introduce myself. Im mara plitzer of the Mayors Office of housing and Community Development. My presentation will take a step back and we all in the room can better understand how its going to be supporting of the Affordable HousingDevelopment Work at Treasure Island. Some of the challenges and opportunities we face over the next few years with what has been happening at the federal and state level with respect to funding for Affordable House in general and a chance to get to know our office a little bit better. Weve been working behind the scenes. First time here in a while. That was little fuzzy. Our job is to administer a whole range of programs of mostly longterm Affordable Housing in the city of San Francisco. We do that through building new units and through preserving existing apartments and by acquiring small buildings to our new loan program and have been doing it through the first nation of renovations of the former Public Housing stock in the news and continued through our efforts through the program at protrero and its predominantly whole family and mixed use and retail on the down floor and families on the upper floors and we look at Home Ownership to support programs as well as our rentals. We are providing housing for a huge range of folks the inclusive homeless people, seniors, transitional age and educators and First Responders so we are covering the gamut of people in San Francisco. Do folks know what the average is for a onebedroom apartment in San Francisco right now . Its 3500 a month so theres great need. You may be able to relate were talking about folks who have been homeless before and are in need of support. And because they are most needy, well also need the support of the state and federal government as well. Ill be talking with you in how we can get those other monies. How we work, we make loans. Occasionally we make grants. We also typically into into agreements with owners and leasers and we have a local operating Subsidy Program some have had a big hand in creating and that is also administered out of our office. I brought with me pictures of Affordable House and what it looks like when we see it. Some pictures youll see in the deck are existing buildings that are ocd or ocii financed in the past. They were completed in the last five and ten years. We want to provide housing thats livable, healthy, accessible, energy efficient, inspiring and beautiful and an asset to its community. We take those goals seriously in our work. That will be our operation in Treasure Island as well. This map shows where apartments that have been funded are located throughout the city. You can see a bunch of dots over on Treasure Island and throughout the city. I want to focus folks attention when i walked in people were talking about mayor lee and housing is his legacy and his goal to build 30,000 units of apartments, homes by 2020 and within that 10,000 units a full third to be affordable and this chart gives you a sense of how were doing on that goal and we are feeling pretty good we are making our way through that. We fully expect to achieve the 10,000 units of housing by 2020. You can see we got 6800 affordable units already. We expect to be able to report back in 2020 that will have well exceed that. The next few slides are realize are tech heavy. The text is about how many awards people run and about the design firms but i want to make sure when we talk about Affordable Housing you have these images in your head when you think about Affordable Housing. This is the richardson apartment around city hall and its for homeless and comparable to some New Buildings on Treasure Island. Its won design awards and has Successful Ground floor uses and has helped keep homeless housed. On ocean theres new housing for families and transitional for young people 1825 who have been homeless or at risk of homelessness and have kids and this ones also won a bunch of awards and considered an asset this one is 120 units and on a former agency parcel. The last one was on an earlier slide but the pictures are so pretty i had to offer a few more and we have lots of experience with either building and housing 100 for the homeless or for Homeless Individuals are integrated into the rest of the building. If youll indulge me and i want to make sure when we talk about Affordable Housing were talking about the same thing. Its affordable. According to the government anyway for a person is paying about 30 of their gross income as rent. It costs a lot of money to build or maintain housing on a per unit basis than a person who had been homeless and earns less than the medium income could afford if the rent was to cover the full cost including debt you may need to get from the bank or profit a Real Estate Developer or owner may expect to receive from an apartment. Thats where the local government or we come in and the state and fed and for the past 30 years the biggest Production Program our country has had worth Something Like 7. 6 billion a year in equivalent revenue. Other folks would be paying taxes or the credit. Though its not scene as an outwardly expenditure, its the federal governments way of supporting the development of Affordable House. We rely on it for the development of lowincome housing for folks who earn less than 60 of Median Income its been around since the 1986 tax code. Theres changes afoot relate to the tax credit. It will bring equity investment. You dont have to repay it back. If you meet the qualifications to get the equity you get it. In that process you get a partner in the form of an investment likely to be a bank. Sometimes its a nonprofit that represents banks. Used to be Insurance Company but likely a bank looking to meet its Community Requirements and our local banks have a lot of that need. We have a lot of investors in the tax credit market in San Francisco. Our investments are considered top notch and we get top dollar for whatevers out there. You can understand the magnitude of the challenge we face upcoming. We also try to get the least expensive bank dots but we still get more money in the form of a loan. The cheapest money is taxexempt debt and can be paired with the tax credit equity. It will come up a little bit later because there was a scare with the recent tax bill. Those are two places where we rely on the federal government to support Affordable Housing in San Francisco. Theres a limited amount of Federal CapitalStill Available not available for federal tax credit and the Block Grant Program through hud still exist. They throw off little capital dollars. Theyre a few of the remaining Discretionary Program which means theyre on the chopping block for reductions. These days we receive both home and when you look back across administrations and the graph of our federal coming in this form its gone way down. Is the state of california is really important to us and it will be really important to Treasure Island. Some are the Affordable Housing and Sustainable Community program funded through proceeds from cap and trade auctions has been in the news the past few year. It hasnt generated that much money for San Francisco. Because the quirks of the program but we think theres other available and think the program, they finally figured out some quirks and therell be more money Going Forward. The more in the pot the more likely well get some of that money. Theres no place like home and the state is bonding against tax revenues from a few years ago. Thats exciting money. Well get our own in San Francisco going for new units for the homeless. It could potentially go for future programs and it balances the vhhp and one of the projects here is going to be applying for that. Well be relying on the state for that support. Another piece of the pie is local capital. Thats why im here. Our sources include our Housing Trust fund, the 2015 general Obligation Bonds for Affordable Housing. We have inclusionary fees. In 2016 we passed proposition c and theres different sources of funds that all go in the pot and these projects will be eligible for some and well also in addition to capital were often in the position of providing direct rental assistance or federal government assistance. We had the operating support for homeless households and theres projectbased rental systems through Family Housing at hud and cpd and housing for persons with aids. I want to draw a picture for folks about all the things people are going to need to do to successfully implement the housing and the village it will take with our federal partners. And were getting most of our money from impact fees and inclusionary fees expected in an up market when theres a lot of market developments when people are building new office buildings. When its down youd expect that part of the pie to shrink the following year well expect more and then back down again and that reflects well have spend the bond money which is one time and also expecting the market to go down a little bit. I think thats an update. Our federal funding sin is influx and the tax plan passed affects San Francisco. We have had some of the most valuable tax credits in the country. People were giving us 1. 23 for one dollar in noncash forms. These days that same credit is probably worth in the low 90 cents and between before the tax bill we saw a major drop in value after the 2016 election because there was talk in charging parts of the tax bill. Now that its done we know what the value is and its another 3 to 4 the value we estimated when folks were thinking about the worstcase scenario. It means millions of additional dollars to provide the housing and will probably be split between local and state government. There was a brief moment in the negotiating for the bill when there was talk of eliminating taxes and bonds called private activity bonds. That was terrifying for us as we were trying to figure out how to go forward without the tool we expect to use here on Treasure Island and the rest of San Francisco. That made us feel vulnerable. It was an interesting and when they dont know the particular aspect of what we do and what the impact would be. On Affordable Housing in particular it was significant and we spent a lot of the fall trying to figure out how to keep the train moving and build the Affordable Housing we need the home and program has been building and the trend continues in the budget which still hasnt been approved this year. Theres no expectation it will get better. Because huds budget has mandatory expenses things like paying the rent where there are natural increases to the cost of electricity or running an Apartment Building as the budget increases the discretionary portion has to be reduced and their down to a small pot of things they control unless theyll be starting to cut peoples rent. We watched that closely. We advocate and thats the world we live in and weve foreseen interesting things happening in the state. Dont forget to vote in november. One was a document recording fee a portion will be going to homeless housing. But thats a study permanent stream of housing as money for housing and well fight about how it gets spent but its exciting it exists. The bond measure is where we excess our right to vote. Look for that. That has a total value of more than 4 billion. Not all would be applicable to Treasure Island but growing the pie for state funds we could compete for successfully would be phenomenal and were looking forward to. We are au few years out if it passes it will take another six months to put out the call for applicants and another year for the money to go out the door but the projects down the road could expect to be recipients of this state money. We couldnt get it soon enough. Theyre planning to revive older programs as the multiFamily Housing program. Theres a Transit Development program and the Treasure Island projects will qualify and maybe when improvements will be made we should be good for that. And the homeless theres a court action. Those are bond funds. The court has to make a decision how the money has to be spent and theyre expecting a decision in the late spring to put the call for the money out in the summer and the way they legislated is San Francisco may be able to compete to get our own pot of money. It will probably be in the 80 million to 90 million range under the general offices. And general approval and its exciting. Its pretty great. I didnt mention theres a project well be planning for and some changes with our local tax credit and prioritizing housing for the homeless through a special Needs Program they have. Also again, the states done work to consolidate their housing programs through the Tax Credit Community and Bond Committee and lending arm and granting arm. Thats been great to watch. Some challenges. One is cost. It costs a lot to build in San Francisco. Were very proud of the results of our work and it costs real money. In this case we have land so its not a challenge on Treasure Island but generally speaking the things you need to pay for before you build. There was a director to streamline the process of approves for buildings located in major project areas and Treasure Island is one and that has promise for helping the whole island achieve what its trying to achieve and part of and inclusive of streamlining should speed it up and make it smoother. Very excited thats available to Treasure Island. And Construction Costs affects the overall costs. Weve looked to reduce the cost. One is factorybuilt housing its called modular. A couple benefits you get from building in the factory is shorter time frame and that builds money in things like insurance and construction loan interests. It takes less time. Time is money. Its quite quantifiable and related to the building and it allows to work multiple shifts. It allows to have more quality control. You dont have people up ten stories working on boxes that are more safe and weve thought how to incorporate it should we get the consensus from the community that thats the way to go. Theres been interesting developments in the industry with how easy it is to get the modules to a location. Thats one of the things weve been looking at. If theres nothing else you have heard today is mocd is committed to the success and achievement of Affordable House at Treasure Island. Well be investing a lot of money and time in helping everyone achieve that. Its worth saying and showing up and making the commitment to you already in the resolution that was passed to establish the infrastructure and person it person we are tremendously committed to being your Financing Partner to the achieve the affordable units. I wanted to make sure you hear that. Theres a lot of progress behind the scenes. We are kicking off the first one and thats a nice milestone. Theres environmental work going on. The team will be applying for the housing program. You only get one shot a year. You have to be ready. They then decide and everyone scrambles and theyre working hard to be ready. And then on the other theres ongoing discussions what the program will be. Then well make our loan to that team as well. Lastly i want to conclude my presentation with things that have happened in the past couple years what we call dahlia the citys flower its also an acronym. It is our housing portal. Its a onestop shop for someone looking for Affordable Housing can find out what the opportunities are if the house has been sponsored by the city. I put the link in here. If theres anyone in the room who represents organizations. And id encourage folks to send people there. That has everything except for Home Ownership opportunities which is one click away. Its a big achievement for us. Were behind the times with technology but here we are with dahlia. By the time Treasure Island is built it will be old hat. Im hopeful people have questions. Thank you for the report. Much of which we already know but is good to get an overview of the program i was president of a project and what a great way to take leftover freeway ramps to incorporate into Affordable House. Though it took two decades to do. We are so blessed in San Francisco to have great architects who understand Affordable House and made the type of housing we build in San Francisco to be wonderfully designed and fit in the neighborhoods. Were also blessed with providers to help do it well. With Treasure Island the challenges are so great. The tax credits have decreased and theyre not what they were before. We have to put in additional subsidies to make up for the gap. Theres almost no federal funds left its from what we get from hud and other federal programs. The state is a brighter spot and many have been on the bandwagon for Housing Initiatives and were successful last year legislatively to get more dollars to local cities. Even 4 billion which is what well estimate that to be in a state that is as needy as california when you pred it over the state, the amount San Francisco will get is quite small and not enough for what we need. The value in overall housing policy and why we need to concentrate on Treasure Island is because we have the land. Its so difficult to get land because we know how land costs have gone through the roof. Its difficult to find land to make the project feasible and we have the land and commitment to do