Inflation. Supervisor thats how much income has gone up as a whole for the city . Yes. Supervisor okay. And that compares with what housing prices have done. Theyve gone up about 100 and total income has gone up about 90 . Supervisor okay. Thank you. Supervisor but were looking at the new employment thats come into San Francisco is the ones driving that higher wages . Those are the ones getting the higher wages. Can we make that correlation . We havent looked into this for this particular presentation but i think wages overall are going up. Certainly wages in the tech sector. Supervisor frankly, City Government the wages go up 2 or 3 not by this percentage. Youre seeing a disparity amongst people who have employed by city and county, for example, and people in a private industry which i think has implications also not only for our housing costs but our workforce too. What youre telling me is theres an increase in employment thats come in. Our City Government has basically stayed stable but the jobs coming in are much higher paying jobs. Higher actually at a higher rate than actually what the rest of the population has been able to afford. Thats right. Thats correct. I do want to show in this chart, for example, we show there are jobs at all different wage categories. The number of jobs are increasing overall and there is a discrepancy with higher income jobs going faster and incomes for those groups are also going up faster. So the combination of the two factors is what is in this orange column there. The good news is we have increased Housing Production in recent years. Can see in the chart by 2014, 2015 we reached the Housing Production levels from before the recession and in 2016 that has increased more to about 5,000 units per year. Potentially responding well do the policies this body has approved ill discuss in a minute. Supervisor peskin i note on tomorrows calendar the board of supervisors and i imagine theyll all be approved, theres over 1,000 units of subdivisions on tomorrows calendar. Okay. Hopefully this will help inform that conversation. Supervisor peskin unfortunately, most are market rate. The flip side of this increased production is that we are producing a lot more jobs throughout the region than Housing Units. As you can see here, San Francisco has produced one housing unit for every 1. 65 jobs created. And other counties this has been even higher. In san mateo theres 3. 2 jobs almost for every housing unit built in that county. This discrepancy of jobs and housing is an issue throughout the bay area. Really, the production though weve shown production has picked up, take longer term look in the 1970s the bay area added 450,000 new Housing Units. Whereas were projected to build less than 150,000 in this decade if we continue with current trends. So there is an imbalance between the amount of jobs were adding and incomes jobs are paying and the amount of housing. Supervisor would you mind repeating that . So throughout the bay area over the last few decades, theres been a steady decline in the number of Housing Units even while the economy expanding. Theres a mismatch between the adding of jobs without the commensurate number of Housing Units to meet that demand. So if i can offer concluding remarks. The increase in housing costs say longterm trend as we see but it really has intensified. The housing rates are increasing everywhere in San Francisco. Housing production hasnt kept up with job and wage growth and this is true both in the bay area and in San Francisco and other bay area cities that have added a lot of lower jobs and housing which exacerbates the problem. These are some policies implemented by this body and the state to address the housing crisis. There are additional efforts underway and we welcome the opportunity to come back to you and discuss these in more detail. So thank you for the opportunity and im here if you have any questions. Supervisor i think we should open it up for Public Comments. The clerk any members of the public who wish to speak . Even if you didnt fill one out you can, please, come up. Im from the San Francisco clearing house. Im assuming were talking about the fifth report of the housing balance. Id like to suggest a couple of things that might be done to improve the accuracy of the housing balance report. It is beyond understanding to continue to count Public Housing. Public housing as part of the housing balance report as if simply perpetuating the number of public Housing Units we have is somehow adding to the Affordable Housing stock. I dont think that it is of much value at all to continue to count Public Housing rehab since its no net new. Its unlike acquisition of existing housing for Affordable Housing. We dont move Public Housing from the market to the affordable side. Its affordable going in, its affordable now. The only thing it does is confuse readers in seeing 26 of the units are affordable under one measure when you count Public Housing construction versus new construction which i think is the real issue here. In which Affordable Housing is only 16 of the production of housing which is dramatically down. Finally, were not counting shortterm rentals. That is beyond my understanding of why were not counting shortterm rentals. There are 10,000. There are overwhelmingly rentcontrolled units and kept off the market given San Franciscos ordinance yearlong. There is no limit. I think we ought to start counting in the Housing Inventory shortterm rentals. Thank you. Next speaker, please. Thank you. Teresa flanderick. What i didnt here is the buyouts that are not and when i look at the figures for 2016 that was published in january, i dont see three address wheres i know tenants have been forced out. Those who tried to stay for 18 months fighting the harassment of either you accept this buyout or well evict you. I know that is much greater because there are the preapps noted and theres a huge difference between those filed and im talking about those that were never filed and will never be filed because theres a means of skirting the law so theres no constraints on the building. We have a condo conversion moratorium in place. So these buildings are now being turned into tics with the hope of being able to convert to condos. One example is 590 lumbard where susan and richard and his children lived and the owner died. Building was bought from a company out of lafayette who is in the process of converting this to luxury units that include two penthouses with entrance from the top and a media center and wine cellar in the basement. So no person from San Francisco i know will never be able to return to this rentcontrolled city. This is happening throughout the city. These are numbers not counted as a housing balance in lost units. Thank you. Specif supervisor peskin and i know that case well. Next speaker, please. Good afternoon. Members of the board, peter Colin Community housing organizations. Ill speak to the housing balance report and just to say thank you to the Planning Department for doing this work and supervisor kim you sponsored it and its one of the most useful things that comes out twice a year and tells so many things about housing need and production and where were falling short, what we can do from a Public Policy standpoint in learning from that. Again, im glad the staff is so committed to digging in the weeds. Cumulative housing balance is an honest way to think about our Housing Production and the report before that is 12 so were doing better but far below what anybody might consider to be an acceptable threshold. So this might sound like the sort of same old thing we as we keep saying is we need more funding and more sites. Thats how we increase production. We also need to do more acquisition. We need to get more buildings off the speculation market as the buildings come up and tenants are threatened with eviction there are tools and policies. Theyre not cheap or easy but there are ways to correct the housing balance more structurally than nibbling around the edges. I encourage you to learn and act from this. I also want to speak to interesting information from the last report. I found it eyeopening the incomes in San Francisco have increased 90 since 1995. That tells us so much about why we have a housing affordable crisis. Its not just units produced but the incomes chasing units changing the price. That cant be lost on us, folks. Thank you. Deepa varma from the San Francisco tenants. The data shows we have nowhere near enough data and it showed what other speakers touched on how more affordable units are being lost as we build more luxury units through buyouts and people being harassed out. I know multiple units near i live and work in the Mission District where whole buildings are empty and they dont show up in any of these registry. We cant build fast enough to replace the units. Id like to talk about the other way to address the bleeding of these units and hopefully well get to that in push for state reform and realizing we need to concentrate on building more affordable units but also need to stop the bleeding. Thank you. Hi, supervisors. Erin rece. Thank you for putting out the data its important to see how were meeting housing goals. Its particularly invaluable because it tells a clear story and points to clear solutions. Like others have said it makes incredibly clear were not producing enough Affordable Housing and need to increase our production of Affordable Housing to pete the needs of the folks here and those coming. We need to produce 60 or more Affordable Housing. That should be our number one development and priority. The second is clear unless we slow the last of units that are currently stably housing people were running in place. Two steps forward, one step back wont solve the crisis. We need to curve production with protection of tenants and expanding rentcontrolled units which is why were excite about the resolution later on the agenda for the hawkins repeal. We pride ourselves on be innovative and data driven. Lets listen to the data. The storys clear. Thank you. Hello, supervisors. I work at housing rec, San Francisco. I want to stress the need for deeper rent control units. It doesnt capture the range of perspectives landlords use. A key example i want to hone in on is the largest private landlord in San Francisco, veritas. They formed a partnership with airbnb. They began taking out gigantic loans to buy rentcontrolled buildings. Theres 61 buildings spread out across 21 San Francisco neighborhood. Its a joint venture between veritas and a bostonbased hedge fund. The founder has been in the news because he has 30 billion in assets and owns 911 million in puerto rican debt. Goldman sachs owns the debt. The portfolio is 95 and across the 1,126 units with an average rent 35 below market. Standard and poors analyzed the loan and found it had 23 billion in potential rent if r veritas can raise rents. Theyve been doing what theyve been aggressively doing since 2011. Since 2016, 57. 1 of the units in the portfolio or 986 units have been vacated, renovated and raised to market rates. The remaining 42. 9 , 748 units, provide an opportunity to achieve rents closer to market levels once renovated. What happened to the tenants in those units . What will happen to the tenants in the other building . This is a chance it do more when homes become construction sites and rents rise. I want to leave it now to a couple tenants to show whats happening underground. Supervisor peskin next speaker, please. My name is lennon and i live in district 3 at 634 powell street. I appreciate the opportunity to speak on the record and the significance for me as a longterm rent control tenant. I was born and raised in San Francisco all my life. Im a freelance forever and work in two San Francisco restaurants. I have lived there since 1996. Veritas bought my building in 2016. Since then ive fought months of construction and scaffolding around three months. When the construction came regular water shut off and heat outage during last december nearly two and a half weeks. And theres dust from painting being speckle through the windows with no notices and ongoing infestation. I found longterm tenants fought off buyouts and others left with two units being used as two shortterm rentals. Then we got hit with rent increase bond and water bond and opening and mans maintenance and set for december 1. Im seeing my neighbors struggling to face an increase of 120 in holidays and i know ill get mine soon. Rent control is the only way i can afford San Francisco housing on a restaurant workers wage. I hope this shows the need for the need to plug the loopholes for companies to exploit. Thank you. Supervisor can you go over that . It looks like most folks are lined up so rather than call them just get in line. Go ahead. Im ameda rubio and i live on 634 powell street. The report is important and i want to thank everyone involved in the production. Im a rent control tenant of 25 years at my home. A student at San Francisco state and teacher. I live under veritas investment the largest private landlord in San Francisco. While the housing balance report covers many ways we lose rent control units it didnt cover whats going on to more than 250 buildings owned by veritas and their investment partners. Together with the Housing Rights Committee and other tenants ive been to other buildings approximately, 20, owned by them and have seen to the same things happening such as constant construction and Services Without proper compensation and unlawful evictions for reasons tenants dont understand across the board. It was clear to me veritas bought our building to make a lot of money and pay down debt. As the predatory equity. When an investor pays more for the building than the current rents cover. Ive seen an opportunity for this body to dig deeper and i urge the supervisors to do so. This has happened before in San Francisco. Many of us remember City Apartments and the millennial family. Its time hip corporation and we need to stop it. Supervisor peskin thank you. Next speaker, please. Good afternoon. Thank you for holding these hearings and giving us a chance to speak out in favor of repealing cost to hawkins in favor of changing the great imbalance in housing in the city. I live in an upscale reputation and growing richer as tenants disappear. Did i an informal survey of the shopping district from grand view to del ore he is and there were 1,000 rentcontrolled units above the shops on that street. District 8 has lost in the last ten years 655 rentcontrol units to the ellis act and conversion. I dont enjoy my walks there as much as iized used to because buildings are suddenly covered with scaffolding and forsale signs. We have one a few battle but more and more feels like an avalanche of money during yet another makeover of our neighborhood. It would be strongly advisable for the Land Use Committee to review the work of the planners and the Planning Department who apparently couldnt care less, i hope im wrong about that, if tenants are in or were in a building. Some speculator now wants to virtually reconstruct for an over the top project. We need to get cost of hawkins and have right to counsel and scale up acquisition programs and the city should lean on the tech ceos for real money and they have been the biggest player in the housing imbalance status. While they have been generous to health care the corrections to housing is not equivalent to their wealth and power. Thank you. Good afternoon. Im a Third Generation san franciscan and medical student. The affordability of the Affordable Housing is a critical issue for tenants and generations Old Community then cries are not new but the prevalence is. The call for Affordable Housing is linked to the gentrification movement. What often gets left out of the conversation is the affect they have on the health of communities. I met patients who have died after being evicted. Its no doubt gentrification has been associated with an increase in pre term berth rates and toxin exposure. Cost of hawkins and the ellis act are linked to the health outcomes. Cost of hawkins is one of the focal points of the social illness. It has have enormous impacts on health and theres exacerbation of Health Conditions and drug abuse and more Mental Health and a can go on. What is clear in the city of San Francisco is our city is suffering. The do no harm correlation are fighting oppression and its impossible to predict how many more cases we will have to have of seniors being evict and dying in our hospitals before the city takes the Health Crisis seriously. We need