That commissioner safai has expressed. Our office funds and oversees compliance of a number of programs that serve households at 60 of ami and above that sara mentioned before. This includes funding new construction, Affordable Housing rental projects, preserving existing rentcontrolled housing through our smallsites program and Home Ownership loan assistance to middleincome households and we oversee the citys inclusionary program. So before i go into the specifics of these programs, i want to give you an overview of what Funding Sources our office has in serving middle income household and constraints for expanding what we can do. So the primary forces of funding we rely on to serve households 60 above ami, Housing Trust fund and 2015 housing bond. The Housing Trust fund allows us to serve households up to 120 of ami for production and rehab of Affordable Housing. We do set aside 10 of those funds for small site preservation. We also fund downpayment home assistance for firsttime homebuyers and a fund for First Responders and educators. For First Responders, the ami level goes up to 200 of ami. For the 2015 housing bond, this was a source that allowed us to focus on middleincome househ d househol households. Were serving 120 to 175 ami. 80 million was set aside for middleincome production and Home Ownership. The Downpayment Assistance Program has a setaside for educators. Were expecting some state funds to assist us in our local funds, but they wont be coming until 2019. Through this years historic package legislation that was passed at the state level, we have a new recording fee that can be used for rental and Home Ownership opportunities serving middle income and work force househol households. And through the 2018 housing bond, there is also funds that are allowable to be used allowed to be used for home purchase assistance and a veterans Home Ownership assistance. So what does this mean in terms of creating more middleIncome Housing . We, the city, were carrying most of this funding obligation without any existing state or federal funds to help us in creating middle or low income rental university ichlts units. It onliy allows us to serve households at 60 of ami. Our city dollars cannot leverage federal tax credits for middleincome households. Or 2015 bond, estimating that it will be extending the funds from that by 2020. So we have limited city funds and without state or federal assistance and without the use of federal tax credits, our gap for producing middle incommune its are about 100,000 higher than what we provide for lowincommune its. So these are the Funding Sources that we have and its the funding constraints were operating under. So what exactly are we doing with our sources of funds . There are two Affordable Housing rental projects that will serve middleincome households that are in our pipeline. 88 broadway and educator housing. For 88 broadway, well have 15 of the units set aside to serve up to 100 to 120 median income. The middleincommune its are funded with 9 million of prop a funds. And construction for this project is estimated to start next year. 60 of the units, or up to 80 units will serve up to 80 of ami. And funding that with prop a funds in the amount of 500,000. Construction is estimated to start in 2019. We have a smallsite Preservation Program that allows us to fund the aquisition and rehab of rentcontrolled units at risk of losing their affordability when owners are talking the units outside of rent control. And this Program Allows us to serve at an average of 80 ami up to 120 of ami. Its been a successful program. Weve been able to preserve 25 buildings with 146 residential units and 9 commercial units. We have 11 additional small sites that are in our pipeline to bring us um to a total of 245 units and 19 commercial spaces. Our Home Ownership assistance programs also allow us to provide a Downpayment Assistance Program to firsttime homebuyers. This is a Deferred Loan Program that were providing to households up to 170 of ami. In the last fiscal year, weve closed on 35 loans for households between 80 to 120 ami levels. And loans between the 120 and 175 . We have a Forgivable Loan Program specifically for educators. And thats called the Teacher Next Door Program and weve been able to close on six tnd loans for educators last fiscal year serving households at 200 of ami. Last year we closed on 185 bmr ownership units for initial sale and resales serving between 80 and 120 ami. In this fiscal year, we estimate we should be administering belobelow market rates and closing on another 26 downpaymentassisted loans. And other efforts to serve middleIncome Housing households thanks to the leadership of this board of supervisors now with inclusionary legislation passed at the rental units and ownership units, well see new projects that will have units that are serving households up to 110 ami average for the rental units and up to 130 for the ownership units. And other city efforts, again, thanks to the leadership of this board, to serve middleincome households through the private market is incentivizing belowmarket units, as well as creating and legalizing dwelling units to serve our working households. As i mentioned, we do have limited resources, though we have notable achievements in terms of what weve been able to accomplish in terms of providing Home Ownership assistance, moving forward with the legislated project and continuing to serve households, retaining their housing through the small sites program. Some of the next steps, what we need to focus on, expanding our sources of funding to serve the households, and two legislative proposals in terms of getting additional funding include allowing the state and lowincome tax credits to serve above the ami and to go up to 80 ami. This will allow us to get the first tax credits and state tax credits to also serve a higher income level. And also currently, our welfare Tax Exemption only applies for units up to 80 of ami. If we were to be extending this property Tax Exemption up to 120 ami, this would allow our projects to leverage more debt and citys gap funding. And so both of these legislated proposals will help and we need more assistance in terms of expanding our income sources to serve middleincome households. Dont go away. I want to ask you a couple of of questions. Just so were clear, a couple of the proposals, so support income averaging for tax credits. Is that something that needs to happen at the state level . State and federal. If we wanted to apply both state and federal income tax credits to go beyond the 60 , we would need tax and federal legislation. And lastly in terms of property Tax Exemption, is that state and federal . Its at the state level. Thats a statelevel thing . Correct. Is that legislation drawn or something in discussion . This is something that were looking at and we are proposing. Okay. A couple of clarifying questions. How much of the prop fee goes to middleIncome Housing . I didnt see that in our presentation. The housing prop fund allows us to produce new housing and or rehabilitate existing housing for units up to 120 ami. So we apply that to both or lowincome production and for middleincome production, no more than 120 ami. The only specific allocation is were setting aside 10 of the funds for small sites preservation. Out of the Housing Trust fund right now, the only thing being done now is small site accusation about 10 . Yes. And how much is that annually . Um, i can get the numbers for you. Okay. And then the rest of it is going to rehabilitation . New production and rehabilitation. So 10 of the total number, which at some point will grow to about 100 million a year . Yes. And you set 80 million for prop a dedicated toward middle income. Correct. And you listed out about 37 million that was spoken for. Where is the other 43 million . So for the 80 million, it includes production for the rental side as well as Home Ownership assistance. So that includes the dolp and tntd program. So what about the project you mentioned the project out in the sunset, teacher housing. Is that the one for 28 million . Yes, correct. Okay. So the 43 million, the delta cannot be going just to downpayment loan assistance so, there are probably other projects in the pipeline. Weve done one issuance for the prop a funds. And weve allocated the funds for both the teacher Housing Project and 88 broadway and then on top of that, we have allocated funds for downpayment assistance and Teacher Next Door Program. Well have two other issuances for the bond. So we havent expended the 80 million. So more money could be issued . Yes. Were at about 30 million. Well take Public Comment in a minute, but i want to get planning back up. In the production slide, you said, whats going to be produced, but how many in that pipeline is actually for middle income . It doesnt really say, unless im missing it. You are not missing it, supervisor. Hard to tell . Its too early to tell. We know of the units that are currently under construction or subject to Development Agreements what that is, but we havent had a chance to break it down the entire pipeline of the whole 60,000. Some of those we dont know because many thousands of those are in the process and havent had to declare yet or havent determined if its onsite, offsite. What would be good as a followup to have any idea. I will forget names, but i will remember numbers. Once you have something, if you can give me a number, what were expecting over the next number of years in the pipeline, that would be helpful. We can do that for you. And then there was another slide on arena targets, but it is hard to pull from that. What is the number that would be an appropriate number to fill the need . I guess its a question for both you and ted in terms of that missing middle. What is a number that we should be projecting toward in terms of how far to meet some of the shortfall . Well, if you are going strictly according to arena targets, if you combine 50 to 80 and 80 to 120 4102 and 4971 9,000 units. So were 9,000 units. For the current cycle. And up to 2022 . Correct. I dont have any additional questions. If its okay with the chair, we can open up for Public Comment. The well open up item 5 to Public Comment. Anyone wish to speak on this item . Please come forward. San Francisco Building and trades council. In a way, im going to be unhelpful, because im going to reiterate the problem. For a generation now, weve remarked on the outflow of our members from San Francisco. We have a consistent pipeline and have had a consistent pipeline, now fairly formalized from city build from other communities into our trades and we watch those workers as they come to a certain point in their careers, complete apprenticeships, and look for Better Living situations for them and their families and not find them here. I think, if anything, its anecdota anecdotal, if anything, the fact that were hearing that same sort of concern from oth other occupations now shows that the problem is spreading. Apart from the fact that you want to be able to call a plumber or electrician if you need one, i will remind you that in situations such as San Francisco will inevitably face, it will be helpful to have folks here that know how to use a cutting torch and handle heavy rigging and it will be great to have them living near the situations. I ask for your help addressing the problem. Why have any solutions for you, but i reiterate the problem. Thank you. Next speaker, please. Good afternoon, peter cohen, council of Community Housing organizations. Amy covered everything. I could not think of anything else in the suite of middleincome programs we have. You must have stolen my notes, amy. Thats what weve done. And i think its pretty impressive, but the difficulty weve always had over the years is the limits of resources, to be able to spread thinner and thinner and also the limitations of leveraging sources for missing middle incomes and supervisor safai, i think you know that. We talk about missing middle. Its a good narrative and i think we all believe in it. But its a big difference wean it is 70 to 140 . And different programs work well for different parts of that range. I would impress upon you to show what programs work well. We have a lot of trial and error. For example, supervisors peskin and safai, we really nailed on the ownership side the right ami levels because, as our Home Ownership counseling organizations know, theres a great absorption of entry level Ownership Opportunities between 70 and 140 . It has not worked as well above and below that. Its not to disparage, just a reality of how the programs work best. And to be thoughtful about the both and versus either or. Its problematic and political. Resources should be additive. Weve been fighting for that for years, adding to the stack and not being tempted to take from one and give to the other. I think were all beyond that, but a friendly reminder. Happy to work with you on more Creative Solutions including legislatively. Thank you. Next speaker. Supervisors, corey smith, if i can get the overhead. This is how just for the record these numbers are reported. You can see the three different numbers there. And were talking about different ami levels here, historically, that 80 to 100 level there 8 to 18 and were at 5 . So just really puts hopefully a fire under our butts in figuring this out and trying to make sure that we are finding solutions, both in the short term and the long term. I completely agree with peters comments here. We need to find additional Funding Sources, because were drastically underproducing at all levels. I also want to say that while we do need to be aggressive in our shortterm solutions, thinking longterm is not the worst thing in the world either. In that same spirit, we want to do both at the same time. I want to take a couple of quotes from the california legislative Analyst Reports with helping lowincome californians. It states that housing is less desirable as it ages. Housing that was considered luxury when it was first built declined to the middle of the Housing Market within 25 years. I know a couple of you have kids, 25 years from few, they may want to live here. In the effort to have shortterm solutions, lets not forget to keep building. We know that new Housing Construction eases the pressure on low and middleincome San Franciscos. Also the federal g. O. P. Senate tax plan and Funding Sources for this stuff is under attack and highly encourage everybody to reach out through the California Housing Partnership and reach out to senate house members in the house of rep thank you. Next speaker. Hi. Laura clark. I want to add a little more context to the rhna numbers. Those were developed when our jobs projections were low because we were having our jobs recession. So its important to realize that we should not necessarily be pinning our goals to the rhna numbers. They should be four times that. We should think about, when is housing affordable, when people are spending 30 of their income on rent. Our goals should be tied to the housing balance and the regional goals, that the entire region has fallen down and maybe that means we should do even more. We should not be stubborn and say, other people havent done their part, so we wont either. We should double down and say, people are desperate. We should build as much housing as we can. Are we going to subsidize all the way up to 150 of ami as our only solution for middle income . That does not seem reasonable to me. I would love to reveal prop 13 and spend all that money on middle Income Housing, but thats unlikely. If we as a city are saying the only way that middleincome people will be able to hold on in the city is by us subsidizing middle income, were looking at a failure of public policy. We need to be building a lot of housing. We need to flood the market with housing. And we need to realize, where is the missing middle . Its missing in the outlying neighborhoods. Its missing where we have constrained what were allowed to do by creep eighting lowdensity neighborhoods. We used to convert singlefamily homes into apartments. And now we dont allow that to happen. The adu legislation is a great start, but we need to upzone our neighborhoods. Neighborhoods need to build apartments. Those are less expensive. Thank you. Next speaker. Good afternoon. My name is georgia shootish. A couple of thoughts about how you could recapture housing. A vacancy tax. A luxury tax. That would give you money to produce more housing. A lot of people that own property dont like rent control, so they keep the property off the market. Its not right, but they do it. Is there a way to recapture some of that . Give a rebate for property tax, which everyone is downstairs paying now. How do you find if someone has left a unit or a hou