Olson lee, Mayors Office of Housing Community development. ~ director of [speaker not understood]. [speaker not understood] and to work with lowincome communities to support them. Our housing budget reflects sort of the change that the mayor discussed in terms of increasing the amount of Affordable Housing funding through the use of the bonding the Housing Trust fund. It grows substantially from this current fiscal year to the next, an increase of nearly 34 million to allow this office to initiate request for proposals for Affordable Housing throughout the city. In the subsequent years there is relatively stable. The shortfall is primarily related to onetime sources of revenue in the 1415 budget overall. The voters approved the Housing Trust fund which provides the Mayors Office of housing and Community Development approximately 1. 5 billion over the next 30 years. In the initial allocation of the Housing Trust fund, that allocation was with 20 million which increases he by 2. 8 million annually until it reaches about approximately 50. 8 Million Dollars in 2024 ~. At that point the allocation rises up and down with the increase or decrease in the general fund. The mayor proposed as part of this budget so that we can do more Affordable Housing to borrow against this future allocation of the Housing Trust fund. So, an additional 25 million will go is being proposed to go into the Capital Budget both in 1415 as well as in 1516. And these funds will be basically repaid over the remaining life of the Housing Trust fund. We will work with the office of finance to secure the best possible rate for that particular financing. In terms of the Housing Trust fund, some of the key accomplishments. We started the down Payment Assistance Program for the first responders. Weve doubled the down payment assistance amount for eligible households. Weve provided over a Million Dollars in foreclosure counseling and eviction prevention. Were currently working with stakeholders to develop a small size Acquisition Program with anticipated roll out of that program in july of this year. We have just completed the hiring for our complete neighborhoods infrastructure staff person and we anticipate that that program will be developed in a collaborative way as we have developed the small side program, and that program will be up and running in this fiscal year. And lastly but not least, weve committed 13. 8 million to Affordable Housing developments to the 55 laguna project as well as. The former hugo hotel site. In terms of our the other activities of the office, were clearly working on creating and improving the housing pipeline and the funding authorized in this particular budget clearly would allow us to go forward and issue the request for qualification of proposals for up to four new sites. This is something that the office hasnt done for quite for the past two years. In part because we depth have the funds to sort of back up the request for proposals ~. We are also working significantly with the Housing Authority and a sitting in repositioning the Public Housing stock through the rental assistance demonstration program. We are also implementing the ellis act Housing Preference program as well as continuing to administer the local offering support program for our supportive projects. ~ los in terms of our Community Development budget, the majority of the if you ~ funding for that is provided by the federal entitlements, 15 million. Approximately 3. 6 is provided from the general fund and will be allocated or pro proposed to be provided from the general fund and will be allocated between fiscal years 1415 and 1516 ~. And that concludes my presentation. My staff is here and we are here and able to answer any of your questions. Thank you. Supervisor wiener . Thank you, mr. Chairman. Thank you, [speaker not understood], for your presentation and for the work that your agency does. [speaker not understood]. We know that we need more Affordable Housing. And even though we have different debates some time about levels of affordability i dont want to get into that today because we need all of them, from very low to low to moderate. Theyre all critically important. I know that you agree with that statement. But my question is how is the agency going to accelerate the production and delivery of actual affordable units onto the market that people are actually living in . I know its been a frustration for many in the community and in this building and im sure for you that we are investing a lot. We passed the Housing Trust fund almost three years ago. Weve had many years of redevelopment. A lot of Market Rate Development going on in the city, its great that the mayors budget accelerates our ability to tap into the Housing Trust funds. How is mo going to Mayors Office of housing going to accelerate the production of Affordable Housing in San Francisco . ~ moh this proposed budget is consistent with the mayors goal of producing 10,000 units of Affordable Housing over the next six years. So, this is clearly critical to the first steps. Now this is a twoyear period, but clearly we will be coming back to this board in the future for additional funds for future investments in Affordable Housing development. So, specifically, in terms of this budget, we are currently jump starting four developments that will be initiated and hopefully completed during the next six years. We have also in this process, we spent a lot of time over the last couple years sorting out, one, getting the Housing Trust fund, creating those programs and initiating those programs. Among those programs that we are initiating, were very, very close to starting a business small sites Acquisition Program and that hopefully will result in a number of small sites being acquired and rehabbed in a very short period of time relative to construction of new Affordable Housing and preserving atrisk Affordable Housing. The other piece of this is really the rental assistance demonstration where, as the supervisors know, this office has worked probably about a year and a half with the Housing Authority about how we can reposition a portion of this of their stock. And as we are building new Affordable Housing through rfp, we really need to preserve existing Affordable Housing that is at risk because its just not being maintained as well. So, those are 3500 units that will be basically rehabbed in the next four years. For our office, its a tremendous leap in terms of the amount of production per year during this next fouryear period, and part of how we are attempting to do that is the request for those temporary employees as we are going to focus primarily on the rental assistance demonstration program. Im sorry. In addition, i think through this process weve worked closely with the office of Community Investment and infrastructure ~ and their pipeline has now been clarified in terms of what resources they have and how theyre going to utilize it to meet the citys overall Affordable Housing goals. Im sorry. Over the next four years how many new affordable units are going to come on line each year . So, the estimate is 800 new construction units and approximately the 3500 rehabilitated units from the Housing Authority. Per year . For four years. Per year for four years . No, over the fouryear period. So, the total would be 5300. So, a little over a thousand units, a little over 1200 units, 1250 units per year for four years. So, in terms of the new units, obviously im 1,000 supportive of maintaining the Housing Units [speaker not understood]. You said the next year 3500 units . [speaker not understood]. [multiple voices] set that to the side for a moment because even though its critically important its not new housing. In term of new Affordable Housing, are you saying delivering 800 units over four years . Thats correct. In addition to those units, part of our Housing Production is with the market rate developer, it says they do inclusionary units and [speaker not understood] units so that 800 number doesnt include their contribution to, to the Affordable Housing production. Does that include the 800 number include seri units . Its an a ~ additional 1600 more units [speaker not understood]. So, between the former Redevelopment Area and mayors nonredevelopment, for lack of a better term [laughter] areas, were talking about 2400 units that were going to produce over four years of approximately 600 units per year . Thats correct. I think that that is way too low and i think that that is i think thats largely because its taking too long to get these units online. I know that construction in this city, whether its [speaker not understood] realize as the same challenges as Market Rate Developers face and Affordable Housing also faces. So, in a way its partially an indictment of the way we do Housing Production in southern San Francisco. But i also i do think there are things that can be done to accelerate that production. Im glad the small site acquisition is moving forward. I hope that will move forward very aggressively because its a lot easier to purchase and rehab, as you know. Yes. Than to build more construction. Its also more costeffective. So, do you see that program accelerating over time in terms of the number of units brought into it . Well, this coming fiscal year will be clearly the first year of the program and were looking to see how it works, where it works best. And clearly it addresses a need in the community in terms of preserving the smaller apartment buildings that we typically wouldnt be able to finance with lowincome housing tax cuts. So, were very, very open to looking at how successful the program will be, the demand for funding to acquire those units, and were really [speaker not understood] a future, a funding request for that Program Based upon, you know, the utility of the Program Overall. In addition, we will be coming back to the board to make some changes in terms of the Inclusionary Program because there is a limitation in there is a 10 set aside in the Inclusionary Program for the small sites program, but it limits the affordability to 50 median income. What were looking at in terms of the program is that these are existing units with people of different income and that limitation may be too restrictive in terms of serving the people who are actually there. So, that may be a change that we will come back and ask of the board in the future. But we are very, very excited about it. There is a lot of interest in the Program Overall and were just we have an open mind about how expansive that program will be based upon the need the demand for it from the Development Community as well as the demand for it from the residents overall. Okay. And then timely, so, 2400 units over the next four years in these newly produced affordable units. Over the next four years, how many units do you expect to come online through the Inclusionary Program, specifically the onsite . The number is 1500 in the next few years inclusionary. Two years or four years . Two years. Okay. So, maybe 3,000 over the next four years . Depending on the economy. And depending on perhaps legislation restricting Market Rate Development, [speaker not understood]. Theres a lot of uncertainty right now about what development is going to look like in terms of creating those inclusionary units. Okay, thank you. Supervisor breed. Thank you. I just wanted to make a couple points about the Mayors Office of housing in particular and what we have to deal with. And i think mr. Lee doesnt always highlight to the level he probably should as it relates to preservation. I think the Affordable Housing units, yes, we have the Housing Authority which is in a different category. But under the San FranciscoRedevelopment Agency years ago, there were a number of units that were developed, and they were developed with a relationship with the federal government. And hud owns a significant amount of properties in my district where they many of those locations like freedom west and loren miller and other [speaker not understood]. Unfortunately they dont have the money, the resources and these are Affordable Housing units. What happens is we as a city have to work with these particular developments and work with hud and we have to have significant public dollars. And to help make sure those units remain affordable. The challenge is its unanticipated in our plans as it relates to Affordable Housing in San Francisco and oftentimes building new is more exciting than preserving the old. So, the challenge we have is invest 30 million in a property to preserve over 300 Affordable Housing units where people actually currently live or build 12 new units with the same amount of money. We have an obligation to make sure that we dont create more homelessness. And, so, i just want to make sure that that is as equally important as building new Affordable Housing units. Thats one point i want to make. And the second point i want to make is there are no guarantees in what happens when we build new Affordable Housing, whether we build a lot of new Affordable Housing little new Affordable Housing. There is a lottery system. There are difficulties with People Living on the streets in the tenderloin or in our shelters. They dont always get access to this property. In fact, its very difficult for them to get access to live in these particular developments. And building new Affordable Housing is not going to change that. And i think we need to look specifically at changing how we make sure that people who need physical homes actually have access to these homes. [speaker not understood] this weekend there were so many people that grew up in San Francisco who walked up to me and said that they were homeless, that they were living in a shelter at the First Friendship Church with their children. And it just blows me away that we continue to push in this direction, but i cant guarantee that these people who actually need this Affordable Housing will get Affordable Housing. Yes, we talk about the fact we need to build more and if we have more then there will be less homeless people, but thats not actually true. We need to make some changes to the system so folks who need housing will have access to it and we need to make sure that preservation of existing Affordable Housing development is a top priority in addition to building new. So, i just wanted to make those particular points about housing in the city. Thank you. Supervisor wiener. Yes, thank you. And i try to be very clear about this. Im in full support of making sure that the Affordable Housing that we currently have is livable and usable and that people have access to it, but we also have a large and growing population in this city who are not currently in any form of Affordable Housing. Theyre being evicted. Theyre at risk of eviction. If they lose their housing theyre out of luck, particularly a lot of seniors. And its important that as we rehabilitate the existing housing that we are also using the money that we are going to use for creating Affordable Housing and use