Because we do have some options. We can pass this out of committee, without recommendation, which means that this committee has not given their approval. Or would someone could also make a motion to move this out of committee. So i think Committee Members at this point, let us approve the amendment first, while you think about this for a minute. And with that, madam clerk, id like to make a motion to approve the proposed amendment from our budget legislative analyst. Clerk yes. On the motion yes. On the motion, supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Clerk there are three ayes. Chair fewer colleagues, what say you . Supervisor mandelman. Supervisor mandelman you know, i share chair fewer, i shared some of the concerns i think you have and other concerns about this contract. I also do take the anxiety that the department of Public Health has about continuing to be working with this company that theyre not under contract with. I think that it might, in light of that, makes sense to move without recommendation, so were not slowing it down, but we are indicating that we have concerns that will be need to be addressed, prior to the board vote. Chair fewer okay. So seeing no one else in the queue supervisor walton. Supervisor walton thank you, chair fewer. And i do appreciate supervisor mandelmans statements. But i think from the conversation and from the fact that you asked the question a few times and it looks like that if we did continue this, services would continue. The planning from the department of Public Health would continue. And there are some things that obviously we need to have conversations about. So i think it would be wise to continue this to our next budget meeting. So that we can get some of that ironed out and have the detailed information that we need to move forward. Chair fewer thank you, supervisors. So i see that we have a couple of opinions here. I actually would like to continue this item to the next meeting of the budget and finance committee meeting. I think this is the appropriate place to have the conversation. And also the appropriate place to have Public Comment. And as you know, Public Comment is to be facilitated before it the commitment needs to be fulfilled before it goes to the full board for a vote. And so with that, madam clerk, id like to make a motion to continue this item, as amended, to the next meeting of the budget and finance committee. Clerk yes. On the motion to continue the item to the next budget and finance committee on november 18th, supervisor walton. Supervisor walton . Aye. Clerk as amended. Chair fewer miss savelo, i want to express our appreciation for color being patient in this process. And also indulging us a couple of weeks and to continue to service to the citizens and residents of San Francisco. And i just want to really thank color and, and and i got tested by color. And i thought it was fabulous. I just wanted to extend my appreciation of the board of supervisors to color for their partnership in this and their commitment to serve awe residents in San Francisco to keep them safe and healthy. Thank you very much. I appreciate it. Madam clerk, can you please call item number 6. Clerk yes. Item number 6 resolution authorizing the department of homebridge and support homelessness and Supportive Housing for homekey. 130room hotel at 440 geary street for use as proposed future permanent Supportive Housing, approving and authorizing h. S. H. To commit approximately 27. 4 million in city funds to satisfy local match and operational subsidy requirements for five years, to commence following board approval and upon the final award and affirming the Planning Departments determination under the California Environmental quality act. Members of the public who wish to provide Public Comment on this item should call 415 6550001, meeting i. D. 146 291 7707. Chair fewer thank you very much. We have the department of homelessness and Supportive Housing. Hi. And audrey from planning. The floor is yours. We have a Powerpoint Presentation i see. Goo good morning, chair fewe, supervisors walton and mandelman. Im the Deputy Director of administration and finance for the department of homelessness and Supportive Housing. Im here to provide an authorizing resolution for the citys project homekey award to fund the acquisition of a tourist hotel, located at 440 geary street. If approved, the site would provide 130 units of permanent Supportive Housing for formally homeless individuals. And thank you to the b. L. A. For their expedited review. Chair fewer miss whitley, would you mind sizing up your presentation . Ill ask my colleague dylan to support me on that. Dylan. Chair fewer for those of us over 60. [laughter] oh, sizing up. Chair fewer making it full size. Yes. I think i can. Give me technical difficulties. Lets try this again. Chair fewer yes. Is that better . Chair fewer wonderful. Thank you. Of course. Thank you, chair fewer. So the authorizing resolution before you would authorize h. S. H. To execute a standard agreement with the California Department of housing and Community Development. To release up to 30 million in homekey emergency grant funds to our coapplicant obis co pal communitepiscopal. A matching contribution for both capital costs and a fiveyear commitment for ongoing subsidies to the project. The resolution authorizes h. S. H. To commit 27. 4 million in city funds, as well as commit to that ongoing local ongoing subsidy for at least five years. In addition to these matching funds, as i will discuss later in my presentation, there are some factors that may increase the citys financial obligation to the project. The final city obligation to the project will be scrutinized by staff and come back to the board of supervisors for final approval in 2021. Next slide, please. A little reminder about project homekey. In july, the Governors Office announced the availability of approximately 600 million in federal homekey funds. These are emergency cares act funds, that would be used by communities to permanently house people experiencing homelessness, that are also impacted by covid19. Funds are provided through the federal cares act and required to be spent by december 30th, 2020, or the funds revert to the u. S. Treasury. On october 23rd, h. C. D. Awarded San Francisco and its coapplicant Episcopal Community services a second project, which is historic, to provide 130 units of permanent Supportive Housing. Next slide, please. The site itself is currently home to the hotel diva. Its located at 440 geary between taylor and mason street. Its 130room tourist hotel, and the city will be with e. C. S. Undergoing a change in use with the Planning Department to convert it to permanent Supportive Housing. However, currently the site is being used through a contract with the Human Services agency, as a shelterinplace hotel. So it is currently occupied by covidvulnerable people experiencing homelessness. Next slide. A little reminder about the project homekey timeline. As you heard me present at our last hearing, this is a very Aggressive Program to try to maximize these covid relief funds by december 30th. As you can see, we had to move very quickly to both identify projects, select a site, and we have until december 2nd, 2020, to close on this acquisition. E. C. S. , our coapplicant, then has 90 days from closing to reach a 50 occupancy goal, for the building, under the requirements of this day. H. S. H. Rehabilitation work to begins in december and to be completed in time to reach the 50 occupancy goal. Next slide. So services and referrals. We conducted a process right after the h. S. H. To idaho tells and other sites that were immediately available for sale, especially those being used as shelterinplace hotels. The seller responded to the r. F. I. And additionally e. C. S. Was selected through a separate r. F. Q. For covid19 operators, in anticipation that some of those sites may be converted to permanent Supportive Housing. H. S. H. Plans to execute an agreement later this year with e. C. S. For ongoing operating subsidies and services, in order to meet that 50 occupancy goal i mentioned. Permanently placed at the site through housing it referrals process of the citys coordinated entry system. This system provides equitable access to resources and targets those who most need who are most vulnerable and chronically homeless to the highest and most serviceintensive resolution that we have in the city, permanent Supportive Housing. Coordinated entry assesses people experiencing homelessness for housing faced on their vulnerability, and other barriers to housing, to maximize participation of historically excluded groups. Next slide. So a little bit about the fiscal impact of the project. The table before you reflects the permanent sources of funding for the project. However, no city funds will go into the project until acquisition and rehabilitation are complete. The total acquisition and rehab costs is currently anticipated to be around 53 million. The San Francisco housing accelerator fund, which is partnering with e. C. S. , plans to provide a bridge loan to cover the gap until city funds are added to the project. H. C. D. Fund funds will go in ate close of escrow. H. S. H. Is working with the Community Development and the Mayors Office to finalize the permanent sources and amounts for the permanent loan through the citywide Affordable Housing loan, in order to bring loan commitment before the board of supervisors in 2021. Acquisition of the hotel diva is currently estimated to be about 48 million. Funded by the Homekey Program funds and eventually city funds. The total budget, as i mentioned, is approximately 53. 47 million. However, e. C. S. , our partner, conducting a seismic evaluation of the building, so there may be Additional Capital cost for renovation, related to the structural improvements and other physical needs. These costs would be at the citys expense. I want to give you more information about where we are in negotiating a final Purchase Agreement with the seller. The Purchase Agreement is not yet finaliz finalized. Any further changes will not affect the matching funds to the state, i want to be transparent. The cafe space lease was originally excluded from the Purchase Price by the seller. The 48 million acquisition cost, at this time does not include that portion of the commercial space. However, the city and e. C. S. Are hopeful that this space will be included in the final Purchase Price. That will increase the acquisition cost by about 2 million, or a total Acquisition Price of 50 million. However, that cost will be predominantly offset by projected revenue from that cafe space lease, which will be approximately 1. 6 million to 1. 7 million. Again all of those details will be back to the board for final approval when a final purchase and Sale Agreement is negotiated. And the city completes its Due Diligence in a final loan amount to the project. In addition, the standard agreement requires the city to provide operating subsidies for at least five years. The estimated cost of these subsidies is approximately 13. 3 million. However, the city and its partner were also awarded about 3. 12 million in state funds to cover the first two years of operating costs. Although the homekey grant requires the city to maintain an operating subsidy for five years, as all of you know, the department is committed to Supportive Housing and intends to make a longterm commit to both the project itself permanent Supportive Housing. Id like to introduce an amendment, explain an amendment that were proposing to the resolution and appreciate the partnership of the Planning Department and City Attorney in helping to draft that. This project is not subject to Environmental Review, under the California Environmental quality act, ceqa. Under senate bill 35. S. B. 35 allows a streamlined approval process for certain housing projects, which are, therefore, not subject to Environmental Review under ceqa. Assembly bill 168, effective september 25th, 2020, requires the local government to engage in scoping consultations with california native american tribes, traditionally and culturally affiliated with the geographic proposed development before a project may be submitted for this type of streamlined review and approval by the Planning Department. The required tribal notification is under way and will be completed before the board takes final action on this resolution. The Planning Department issued a formal notification to the affected native american tribes on october 15th, 2020. The Planning Department does not expect to receive a written request to engage in additional scoping consultation within the 30day notice period or by november 16th, 2020. At that point the project is then eligible for ministerial approval, under s. B. 35. Therefore, ceqa determination would not be required. The Planning Department, as i mentions, does not anticipate any inquiries from this notice, as there are no proposed disturbances to the soil, as part of this project. However, while waiting for the notice period to conclude, the Planning Department has additionally executed the categorical exemption, as it is not proposing any major work to the exterior of the building. The exemption not needed on top of the s. B. 35 approval process. However, to ensure the resolution qualified to move through this committee and on to the full board, the Planning Department, in consultation with the citys attorneys office, issued this additional ceqa clearance. We are requesting the committee, amend the resolution today, to reflect the additional ceqa clearance through the categorical exemption. Im joined by our colleague from the Planning Department, our principal environmenter environmental planner is on the line. I thank you for your time. Chair fewer thank you very much. Could we have a b. L. A. Report, please. Yes. It is nick menard from the b. L. A. This proposed resolution would approve the California Department of housing and Community Development for up to 30 million to acquire a hotel at 4440 geary street. And would also authorize the department to commit at least 27 million in matching funds for the grant. As we detail on page 29 of our report, the cost of the acquisition is expected to be 53. 5 million, excluding that commercial space that miss whitley referenced. Of that 26 million funded by the grant. Grant would also provide 3. 12 million to partially cover the required operating subsidy of this project. The remaining cost to the acquisition, and their operating subsidies Going Forward would ultimately have to be paid for by the city. We do recommend approval of this resolution. Chair fewer thank you very much, mr. Menard. Any comments or questions from my colleagues . Madam City Attorney, does this amendment, is it substantive . No, madam chair, its not. Chair fewer thank you very much. Lets open this up for Public Comment, please, madam clerk. Clerk yes, madam chair, operation is checking to see if any callers in the queue. Operations, please let us know if callers are ready. Yes. I have two callers in the queue. Chair fewer okay. Thank you. Caller hi. This Rebecca Foster calling. Im the c. E. O. Of the San Francisco housing accelerator fund. Thank you all to the committee and to mayor breed, h. S. H. , mohcd and Episcopal Community services for your work on this important acquisition. And we are proud to be partnering again with the city and e. C. S. On these second homekey projects. And leveraging private and philanthropic funds to assist the city in reaching its ambitious and incredibly timesensitive goals to provide more permanent Housing Access from the shelterinplace hotels in particular. And were planning to provide approximately 30 million bridge loan to finance the remaining portion as was mentioned of the acquisition and rehab costs, but will not be covered of the state homekey award for 440 geary , the diva. And just couldnt be happier to b