Bond funding are senior citizens. Theyve lived there 30 years and have very low rents and are in danger of losing housing. In addition, we are preserving the communities at sunnydale a and potrero, preserving the housing for those households. Theres many intergenerational families at those locations, so with respect to the bond level, thats what we were getting at. I think it would be great to put that in the report so that people would have a sense that there was some delivery of the issue that was raised. Thats a good idea. We will do that, and we will also add i think in prior bond reports, we talked about the switch of funding from one project to another when it happens, but i think thats a good idea just to keep it moving in all the bond reports just so as people look at it freshly, they may have forgotten, and we can make sure that thats clear. Thank you. Thank you. Theres a larger issue besides specific to this bond, which is how this bond fits in to overall Housing Needs in a city. The Housing Needs are outstripping our capacity to provide housing, and you can see that in stories about therell be 70 Units Available and 6,000 people who apply in one news story that appeared in the last 12 months. So to some extent, its the Mayors Office of housing thats in charge of this event and in charge of the housing of this city. If you could add some information that would give us some sense of where we are and how this bond plays a role in moving us towards our objective. Clearly, it provides anybody who is able to get housing, but youre back to the question about whether theres a hole in the boat thats bigger than the bucket that were getting bailed out of. And there are various reasons for that, some of which is that were not building Affordable Housing as much as were building market rate housing or that the mix of jobs in the city are largely people with higher incomes. And people in Service Industries and others have been moving out of the city. And so weve had a change in the population. And while this report cant answer all those questions, it can point you to where theres Additional Information that needs to be taken into count. What i think we can do if this sounds satisfactory to the committee is provide just a brief overview of all the resources that mohcd is putting into Affordable Housing and production. This is one tool in the toolkit, as they say, we have many other sources of funds, and we can talk about that about our budget and efforts more holistically. In addition, we can provide a link to our annual report, which is on our website, and that gives a much broader picture. Were just finalizing right now our five year consolidated plan that h. U. D. Requires of us, and it has very detailed information about needs Housing Needs and Community Service needs as well as goals, and then, the Planning Department has been Affordable Housing strategy that is very info informative. So we can put those links in the next report so that people have further information should they choose to investigate . That would be helpful. I think most people look at Housing Needs as the anecdote of their lives. I know in my home, i live in the castle, and 19 units have gone from rental to home ownership. Thats huge in my neighborhood, but its huge in other neighborhoods especially when you have units that are two or three stories tall because people find more of a human scale. So one looks at that and extrapolates that this is what must be going on in the mission or what must be going on south of market or wherever else, and you dont really know, so a report that you guys would put together and link to would give us a better picture than what we can see walking down the street. Were happy to do that. Thank you. I just want to add a comment. Just appreciate the Mayors Office of housing and Community Development putting this together. I thought this is a difficult topic. Theres a lot going on with it, and as commissioner bush mentioned, like, complex. A lot of moving parts on this. You did an excellent job of making this digestible and a little bit easier for us to grasp. This doesnt work like the other bonds we have here, and i appreciate you tickiaking the to get into that, especially as we look at another bond for 500 million coming this november, it makes it easier for us to do our job and provide the oversight. Thank you. Thank you for the presentation. I wanted to follow up a little bit on mr. Bushs comments and suggestions about how difficult it is for all of us to really follow these project changes. I was just really appealing to you to think of a way that in between presentations, how you can highlight those changes. As said earlier in projects, we talk about changes. It took me an awful long time to figure out, for example, in laguna honda, that project became zilch, if you will, so the funding for that project was redirected to other more pressing projects that could use the money. Is there some way that you could actually list the name of the projects, the dollar signs, so that for example if you had another project thats kind of live, if you will, or a candidate, the next time we meet, that came that fell by the wayside since the last time we heard about the projects, i think that would give us a sense of the number of projects held in abeyance or abandoned so that we can follow some trail. I dont have a good way to do that, but it took me hours to read the report to figure out which ones and how many dollars. And at the end of the day, it is i got it because i put the pieces of the puzzle, but i you know, im just expressing frustration, and i know its very difficult in the type of projects in this bond, theyre not so neat, if you will, and you dont find things until you go there. But in the meantime, somebody else and the team have found other opportunities that could use that money. So i think that you your team has done a good job trying to take advantage of those opportunities, but its very, very hard for us to follow so that we can fulfill our oversight duties as were making sure that dollars are spent according to the way the bond is. And i understand within the four categories, you have a great deal of latitude to move around that as long as its labelled under those four categories. And impacting the complexity to follow it is some of these projects i forget, theres one or two buildings that have both a component of lowincome and affordable all in the same structure. So it was hard for me to say well, did they allocate this accordingly . Now the allocation is up to you on an operational basis. But i you know, im pealing to y appealing to you in order to design reports that are helpful to us so when we read it, we can get the top level changes of what you did and why you did it so i dont have to go through every single little project to assure myself wow, i understand what i did. Im explaining in a very long winded way because its a very complex way, really, for us to read all of it and then be satisfied that we know what weve read so we can opine on your work. Committee member mcnulty, we did try to create a summary for you on page 36, there is a page, a table labelled change in unit counts, and it shows the reporting of units produced in our last report, what it is today, what the variances and what the comments. And we tried to achieve your goals there on one page, but i can see now that i think it would be helpful if we annotated this a little more. We could assign footnotes to the for example, 250 laguna, started at 150 units in this march 31st report. Theres zero units. We actually did not spend any bond funds on 250 250 laguna, but what i i think would be more helpful to the committee to say a little more, such as that project presented previously unknown geotechnical problems and other unknown factors that caused to redirect the funds we had reserved to that to 1296 shot dlg well. And i think you could highlight it in the presentation highlights, and then for reference, for more details, see page we will do that. Thank you. Id like to support what you sufficient said particularly it gives us a chance to learn lessons learned, and particularly to help the public understand that there was compelling reasons for changes other than just the convenience of the office. Yes, we will definitely do that. [inaudible] i think that, you know, the housing bond had been a attracted a lot of great interest in the general public, if you will. We talked a lot about metrics, and a lot of people are interested in looking at the total number of units. So the magic number for this bond here is 1501. Now how we arrived at the 1501, how it gets changed, the components, i think thats really thats part of your responsibility. But what happens is that magic number, 1501, gets floated around in public reports, the numbers, and it is part of this committees responsibility to reassure ourselves on behalf of the citizens and asking this type of questions that the reallocations that your department does is valid, is grounded on changes, unforeseen, mostly. So what im trying to say is that people look at that 1501 number, but people rely on us to make sure the shiftings, the reallocations that total that number is something thats responsibly done and needed as you manage the administration of the bond operation of the bond. Well provide much more detail, so that makes your job easier, yeah. I have a few questions. What are deferred loans . You referred to them in the presentation. I didnt get what they were. Deferred loans in the past presentation, do you want to answer that, jonah . Yeah. The deferred the question was what are the deferred loans . Theyre one of the components of the past program. Yes. A deferred loan is a loan that makes no Monthly Payments until maturity, so its a loan where all payments are deferred until the very end. Okay. All right. Thank you. And thats let me just build a little bit on that point. We had raised earlier the fact that we were unaware that some of the grants that were being given to entities to build Affordable Housing would never be repaid. In effect, they were not loans, but they were going to end up be grants. Is that still the case . No. They are in fact loans. We leverage them with other resources like lowincome housing tax credits, and they must be bona fide loans in order to get those federal tax credits. So the way that repayment works is we have the and repayment is a function of keeping the rents low. So we keep rents low to make sure that they the housing is affordable. Then, the owner pays for operating expenses and then pays the debt service on the loan. And then proceeds of that are leftover leftover after that are repayment. So in some years we may get a repayment if operating loans are stable, but thats by but really, what drives the repayment schedule is those affordable rents. At sunnydale and potrero, for example, there are section 8 subsidies which are able to leverage a high amount of debt, and with that financing structure, were much more able to receive regular loan payments over time. So this bond actually does not have any outright grants. Everything is issued on a loan basis. When you do the overall how the loan amounts are due to the mayors house of housing, i think its important to point out what has happened with the federal funding. You mention section 8, and section 8s funding is down from what it was, a lot. Its done a lot. And then some programs like 202 or 811, those were earmarked for building Senior Housing or housing for the disabled are eliminated entirely. San francisco hasnt received any funds for those for ten years. Also, funds for housing and public maintenance are down. San francisco is suddenly shareholdering a burden that was once carried by federal tax dollars. So i have a question related to the taxes, the repavement. Can we repayment. Can we see a Financial Statement that shows that revenue coming back in . And when that revenue is coming in, is that bond money to be used again for bond stuff or does that suddenly turn into operating cash . So we probably dont expect any repayments to come in because those loans are not expected to be paid by the Nonprofit Developers for a very long time . But why is that . Because i think we just heard the opposite of that. Well, i understand it as something completely different. So on an annual basis, well receive some loan repayments over time. So our the loan proceeds that we get on any of our loans are repurposed back into Affordable Housing, so we can provide the Financial Information sort of showing what we receive annually in loan repayments and its reallocation. Its reallocated to a bond program to become Capital Funds or its bond money because those are two different things. So when bond funds could come in for the 2015 Affordable Housing fund, they will be under the same restriction as the original bond. Okay. Theyre automatically appropriated towards that restriction. Okay. So id like to see that financial id like to see where the when the revenues coming in and how the revenues coming in. I know from the presentation that you only signed one so far, right . Thats just 60 28th street . So that would mean on page 11 yeah. Not ton of revenue, im sure, but id like to see that. Yes. Because if youre making youre making a lot of assumptions in this whole program. Sure. And i want to make sure that i understand where that revenue is. Yeah. For the 2015 bond, which is separate from the past, as you know, we have small sites projects that have closed and central and potrero park x has just recently opened up. The financing closed, so were not going to have any we may have a small amount of repavement proceeds from the small repayment proceeds from the small sites today, and we can show you that, but over time, it will grow because most of the most of the projected are in construction now projects are in construction now, are in predevelopment. Yeah, but id like to see projections. It doesnt have to be the actuals, in particular for the 71 million, and when is that revenue coming in or what do we expect when do we expect that revenue coming in . Thank you for the metrics for success. Appreciate that. You told us what metrics youre using but you didnt give us any targets, so im not sure how to use the metrics for success. For my colleagues, its not in this report. This report is not very robust, for my colleagues, the metrics for success are on page 16 of the report that we got. Total number of households served by target population and total amount invested, so if you can give us what youre targeting, what success looks like to you, that would be really helpful to brendas point about the 1501 earlier. It gives us something we can actually look at and measure against. Sure. I would just say quickly in response, the initial estimate when we sized up the program was that in aggregate, we would be able to preserve approximately 1400 apartments. Thats great. If we could get it in the report regularly. Ill add it to the metrics. It is on page 8. Okay. Yeah. If you could add it to the metrics. And then, finally, why issue more bonds right now . You guys have only closed one for 1 million. Youve got another 70 million. Isnt there, like, something about theyve got to be used in a certain time i think theres laws around this, too, of issuing way too early. Just to clarify the next upcoming issuance is not for past, its for the third issuance of 2015. Oh, okay. The next the second issuance for past is expected to be in 2020. Okay. Ill ask you the same question in 2020. Fair enough. Okay. Any other questions . Public comment . Seeing none, thank you for your time. Can you call the next item . Do you want to would you like me to call all the items . Yes. So item number 7, opportunity for Committee Members to act or comment on any matters within the committees jurisdiction. I would note for the record since there are no members of the public in the room now, we dont have to worry about taking Public Comment. Okay. Thank you. Yeah, we missed some of it today. I know youre going to run short of time. Well talk very quickly. Some of these you dont have spend any time on. Ill try and just do one sentence on each of these. Im peg stevenson from the performance side of the City Services auditor. On the standardized template, we will put time to have staff assist you in the upcoming fiscal year, and its just for you to confirm a liaison to work with us on that, and i think maybe chair chu has volunteered herself for that. The estimates, if you have questions about them, mark from the audits group is here and he can address them. Public finance, upcoming debt issuances, you have the memo in your packet which shows you the upcoming debt issuances, and jamie from our Public Finance office is here if you have any questions about those. And the c. S. A. Work plan, this is where we give you a little sense of whats coming up in our work plan for the coming fiscal year, and well just talk really, really quickly on that. Theres a couple of new members, so just some lightning overview of what the City Services is all about. Were a creation of a 2003 charter amendment, and it sets aside. 02 of city funding to do internal audits and performance and Technical Assistance and reporting to the public the citys level of effectiveness on public services. It requires specific activities like the street parks and sidewalks initiatives, and others are effectiveness, and improving transparency with the public. So thats in very general terms what were trying to do. Just to give you a sense of funding scale, so that. 02 set aside is about 19 million in the operating budget and side Performance Program and Citywide Program and perform all manner of assistances to their Technical Assistance program. Our work planning process, we look at everything thats required in the charter and the admin code and the graduate leases. In our graduate school, we called it a