Transcripts For SFGTV Small Business Commission 2816 2016021

Commission thanks Media Services sfgtv per letter area by the commission and need get the meaning can be viewed as a david e or live stream going to sfgov tv. Org and click on, watch sfgov tv two. Members of the public, please take this opportunity to silence your phones. During Public Comment, during the meeting is limited to 3 min. Per speaker unless otherwise established by the presiding officer of the meeting. Speakers are requested but not required to state their names and complete a speaker card. This will ensure that the proper spelling of your name in the record, in the meeting record of the minutes and you can set your speaker cards up on the edge there. Additionally, theres a sign in sheet at the front table that those would like to be added to our mailing list. Sfgtv please showed the slide. First off first day of lunar new years day. The year of the monkey. This is our time for a Public Service announcement. Just to remind everyone, the office of Small Business is the citys Central Point of information, assistance, and referrals for entrepreneurs and Small Businesses in San Francisco. The office of Small Business is the only place to start your business in San Francisco. We provide free and oneonone assistance to help each pipe achieve their business goals and needs. Our Service Includes a checklist of required registration, permits licenses zoning requirements and we can connect you with city funded Business Resources, Resource Partners to develop a business plan, access finance and legal and Technical Support for any other business assistant. Again, start at the office of Small Business. The office of Small Business is here to support you through the many stages of your business, not just starting but also throughout its lifecycle. Please stop by our office which is here in city hall, room 110. We are open monday through friday from 8 am5 pm. You can also call 4155546134 or, of course, a new way visit us online at our awesome new business portal, business portal. Sf. Org. We provide services in english, chinese and spanish. Remember, the office of Small Business is the only place to start your new business in San Francisco. Lets move on return back to the meeting. Moveon to item number one, which is though call to order and will call. Lets have it commissioner adams, here. Dooley, here. , dwight, here. Ortizcartegnea, here. [applause] toursarkissian here riley, here. And zouzounis here. Mr. Pres. , you have a quorum awesome. On item 2 item number two, gen. The public. This allows members of the public to, generally on matters within the commissions purview and suggest new agenda items for the commission to future consideration. This is where we like to remind everyone that we are open for new business at the Small Business commission. If you have new business that you would like to for us to consider work you just generally like to comment that is something not on our agenda this evening, this is the time to do it. I encourage people to come out and sound off about things that affect Small Business, and we also encourage you when you do that to write down your comments because you are here to get them into the record. Oftentimes we get excited when we get to make a presentation and forget where we are. If you write it down, you get bonus points for reading what you wrote. Its the best way to get it written into the public record. Anyway, do we have anyone from the public that would like to make a general Public Comment at this time . Seeing none, Public Comment is closed. Item 3 item 3 is a discussion and possible action to make a recommendation to the board of supervisors on board of supervisors file number 150969. This is the planning code and Bonus Program. This is a ordinance amending the planning code to create the Affordable Housing Bonus Program consisting of local Affordable Housing Bonus Program the 100 Affordable Housing program, and analyzed state density Bonus Program and the individually requested state density on this program. To provide for Development Bonuses and zoning modifications for Affordable Housing in compliance with and above those required by the state density bonus law. Government code, section 65915, and to establish the procedures in which the local Affordable Housing Bonus Program and the 100 Affordable Housing this program shall be reviewed and approved. Adding a fee for application under the program, adding the planning code to exempt projects from height limits specified in the planning code and the zoning maps. Affirming the Planning Department determination under the California Environmental quality act and make findings consistent with the general plan. Tonight, commissioners, you have a presentation by planning staff kristin bissinger. Sheila nikolai bullis is also here. And then Deanna Ponce Deleon is from the august office of economic workforce develop budget welcome kierstenplant manager for the Affordable Housing Bonus Program. I apologize. I forgot the hard copies of the presentation at a make sure to get back to you tomorrow. I am here to represent what the department has been doing this is better sponsored legislation in response to the Affordable Housing needs. You may be a member about two years ago the mayor put together a working group to come up with a full suite of solutions to respond to the Affordable Housing needs. Im going to talk a little bit about the breath of tools, but this really is just one of those tools. Keep that in mind when youre listening to it. Theres a few other legislative efforts and of course you remember we just passed the housing bond, and Housing Trust fund, a lot of local sources to fund lower income households. So this is just one of those pieces. Mistaken our team about two years to develop the program that is before you. My goal today is to give you a highlevel overview of the goals and mechanisms and zoom in on the program with your interests which a Small Business. I will start with why are we looking at Affordable Housing needs. Of course, if you live in San Francisco and youre aware of anything you know our Affordable Housing needs are very intense. This is an issue we share with all major metropolitan areas. We are seeing a resurgence of people choosing to live in the urban environment and that can pound it with what about local economy, has really doubled the affordable ability and sparsity. We are gaining about 10,000 new residents every year. Ted egan niceties economist has done some great analysis on the census to find that actually we are losing 70,000 and gaining world we are losing 16,000 and gaining 70. So theres a lot of displacement could a lot of churn. A lot of people choosing to leave to affordability issues. I think when you learn about this program, keep in mind, the who and what we are leaving and for me, a lot of people ask me what we care about Affordable Housing for anyone but the very neediest and it really is that diversity of workforce and that diversity of community that were looking for. So, this program will he speaks to that issue. How do we make sure that all different kinds of workers can be near the jobs that we are creating and working hard to keep in the city . There is a need for prominently Affordable Housing. Ill go into this a little more but this is the First Program that the cities ever contemplated that offers prominently Affordable Housing to middle income households. So thats a new offering to this program which is been getting a lot of attention in the media and will be talking about that. Its important for me to also emphasize we are doing all of this work without any public dollars. So, this is in addition to what public funding is able to accomplish with affordability. Finally, no one likes to know just where in the state of california and part of what were doing here the city of San Francisco more in line with something called the state density bonus law. Essentially, that says if you build any Affordable Housing youre entitled by state law to a density benefit or to be able to build more residential units the idea is that the kind of helps offset the cost of subsidizing those units for the developer. Its an internal subsidy. Like i said, this is just one of the many programs. You probably cant read the fine green here but the top box was always the programs that really focus on a very low income households. Those earning up to 21,000. This is where historically, all of our Affordable Housing dollars have gone. Our largest Affordable Housing supply is in this bracket. 100 of Affordable Housing project really focuses on this level. The below market level. We also have a program called inclusionary housing. It requires developers to make 12 of their units affordable to a certain Household Income. That is the below market program. Thats it in a slightly metal bands. Finally, we have some holdover homeowner assistance programs that reach a higher level. I think talking with regina a lot about this program and shes been saying one of the issues your commission has been talking about and Small Business owners are talking about is how do we retain those lower income of 15 per hour households. So, this program speaks to vote some of those people, especially if theyre in a married household or household with a child, but also relieves the pressure on some of our more traditional affordable rent control units. This is what my favorite slides because it tells the history of the work of my team. We been working for about two years with architect david beeker firm. David beekers Architecture Firm rather than a Financial Consulting firm. Basically, we start with a box on the left. Its three i was kind of undefined. Thats how the state law leads. It was our work first, to put parameters around the state law and thats our state program. Then, we said we want to go further. We want to get that 30 affordability. Thats our local program. Building on the analysis we did to put parameters and make the state law work in San Francisco and be very clear that we created the local program. Under the state regina write off all four programs. One is focused encouraging people to add about 30 affordability of the total units, and then the local program also gives incentive for people to go further. These are all optional programs. Developers can choose to go with the zoning they have right now or seek these incentives by providing more Affordable Housing in their project. Here is a summary of what those programs offer. The state law says if youre from 1320 affordability, you can get some density benefits up to 35 more units. Sometimes you also need height through the get with the local program, we say, if you do 30 Affordable Housing, a level of Affordable Housing that we rarely see, but we have passed proposition k by motor voter mandate to achieve that goal, you would get two additional stories of height above your existing height limit. And you would be getting is 30 affordable units. Very small but important part of the program is the 100 affordable program. This enables projects that are funded by the city that have all our public subsidies to get three additional stories. So there are many sites the city has control over especially in the mission for example 17th and folsom. Theres about one on street. Those projects can get way more units and we can really get much more for our Public Investment in those units. So this Program Helps them along. We only anticipate 23 projects like that a year just because its so funding intensive. What is affordable . A commission talked about this a lot. Affordable actually youre spending only 30 of your income on housing. Their federal state and local analysis that says those dollar limits at different place. 57, 59, they are different. This is what San Francisco affordability levels are by very low, low which are really the workers are most were focused on. Moderate and middle income. That income varies by household size. So, if youve got two earners then we put it in a slightly different place. This chart goes out to a seven person household. This is just to help you understand the steps in the latter. This is why we need Affordable Housing for all those income levels. You can see with these people can afford to pay a month if theyre only spending 30 of their income on housing. So, burial low, nine or dollars a month for studio one bedroom were 2500 for middle income. And something in between. On average market rate unit that household size is going for 3490. So for trying to recruit more employees, if we are trying to allow households to move from single life to their family life, we need to make sure that housing is affordable to these various income levels available. Quickly, about the program, the program area was defined based on the existing zoning controls. So, we are trying to getwe are trying to be consistent with the state law and implement that. The state law says anywhere you allowed to build five units or more are eligible for this program. Generally, this is areas were not resounded through market octavia or eastern neighbors but if theyre the old kind of zoning where density is regulated by a ratio of units per lot area. You really are including a lot of the commercial corridor. The neighborhood marshall corridor and the larger streets. Almost the entire program area is within a quartermile of the muni rapid network. A quartermile is generally considered walking distance. Rebuilding housing where mta is investing in transportation services. So its a nice synergy there. Over the next 20 years, we think this program could generate about 5000 new affordable permanently Affordable Housing units. A total 16,000 new units. Thats the program area. Just to give you in the program area does mean you can take advantage of this program. There are a couplethere are many different limitations. We are not including our rh one and rh two districts adjusting the family home districts. Also, you cant abolish rent control units. You can demolish a stork resource. Quick question. We say rent control property i think this is kind of important. Lets say over ground floor retail with apartments above it all rent controlled. Those status and . Thats why. Thank you the rent control housing supply i was get the summer run about 5254 of our units. By making the demolition ineligible for this program would dramatically reduced the number of project parcels that could potentially participate. Well see that as a change in the program because our intent was to never see a change in that housing type. We are really looking at soft sites. Sites not used for housing and all talk about that a little more. Again, you cant demolish Historical Resources. Also, you cant cast shadows on parks. Those are things that we generally regulate through ceqa but for these programs we put them in a legislation as absolute cannot. Not it possibly made. Theres no gray area. If you want to do that then you cant use this program. This is a map of the program area. You probably have seen this in the media or perhaps on a telephone pole in your neighborhood. It can be a little bit overwhelming. Its about 30,000 parcels. This is my favorite color but for other people i guess it feels like a massive change to the city. Its all of our neighborhood commercial corridor residential commercial, and residential mixed use. Just to understand im sorry, to understand here is a look about two different corridor. Heres district 1. Richmond. You can see the yellows are rhthree and that purple color where it would marshall corridor. If you move just the rent control units not accounting to the various historic pieces you can see its much smaller portion of the area thats even eligible for the program. Weve done a lot of analysis on this. Its reductive analysis of 30,000 to what we think will happen. We actually identified about 240 sites that we think would take advantage of the program over the 20 years. Is this richmond only . In the whole city. G