these are approved administratively. >> if the use qualifies under this new temporary use provision, it is administrative. >> but just to be clear, it would not come to the commission. president miguel: i would like to compliment off the grid, having a couple of times having fallen into some of those, one that was on third street near term the second a while back -- on third street near 22nd a while back. i do not know how many food truck benders' there were on the street and in private parking lots along there, but certainly five or six that i could count. and the wine bars, the restaurants, the regular bars, and everything along there were also doing great business at the same time. and it was extremely well handled. the public just loved it. there were walking a three block

stretch, four blocks stretch. there really enjoyed it. you have done a good job in that regard. >> commissioners, the motion is before us for approval, as modified to extend the square footage to 300 square feet. on that motion? commissioner antonini: aye. commissioner moore: aye. commissioner sugaya: aye. vice president olague: aye. president miguel: aye. supervisor dufty, were you also going to comment? let us go to item nine. >> you are now on item 9, the amendments to the planning code residential inclusionary affordable housing program. >> thank you again, commissioners. great cities in our country are

noted for having institutions of higher education. this legislation -- i want to acknowledge tim cullen, who will be up here to speak from the housing action coalition, and i want to thank my staff to work on this legislation. our local institutions are at a very competitive disadvantage in attracting the best students, compared to those outside of the bay area and northern california, because of costs and the higher cost of housing. this complaint has come up recently and repeatedly to us. we recognize that right now for many students, the default is just going to cruise list. we are not increasing the supply of student housing. a significant number of family units are being utilized by young, unrelated adults,

students. that has an impact on our city as well. this legislation helps to clarify what the intention is of the inclusion rehousing ordinance as it relates to student housing, recognizing that many students are low income. i know there are some changes that the department would be discussing. i am comfortable with those recommendations. i certainly recognize that the impetus is to try to develop new housing, and to recognize that we do not want to eat up existing housing stock in order to meet this need. but i believe that this legislation will help us to do what cities such as boston have done, which have adopted policies to promote the production of new student housing and how to promote the development, and help to make the city more inviting to students to live there and study theire, and more likely than not

to continue to live there after they graduate. president miguel: thank you. >> tara sullivan, from the planning department. this piece of legislation would amend the inclusion rehousing program to is basically excellent student housing from the fees and on and off site requirements. it is going to be adding to the program, dealing with qualified educational institutions, qualified students, qualified student housing projects, and qualified student housing. based on that, it will exempt certain academic institutions if the following criteria are met. one, the building or conversion of space does not result in a loss of existing rental housing. two, an imp is on file with the planning department. there are certain triggers in our planning code for that

process. it would only be academic institutions that trigger that. that will describe the type and location of the housing used by the students, the plans for the provision of the qualified student housing, the institution's need for the student housing, and the percentage of its students that receive some form of need-based assistance. there will also be required to submit to the mayor's office of housing and annual report that outlines all of the leases and ownership of the properties that are used as student housing in the city, the number of qualified students that are occupying these units, and obviously they will be reporting a notice of special restriction on the property to notify that they are exempt from the program because they qualify under this exception. as the supervisor mentioned, the department has been working with mo and tim cullen on this for quite some time. we support the concept of

student housing. there is a lack of a definition in the planning code, and it has come up repeatedly for certain institutions that there is not this institution. we support this legislation with the following modifications. one, a clear definition of student housing needs to be put in the code. those proposed in this legislation are good, but do not define specifically what student housing is. it describes the qualified institutions, and so on. similar to what is going on with the overall conclusion very housing ordinance, it would automatically recapture the inclusion rehousing fees, if for some reason that student housing converted back to regular use, or residential use, so the city would, like we do in all other projects, reclaim the fees. the third and important recommendation we are proposing is the conversion of existing residential units. all existing residential units,

including single room occupancies, residential hotel housing, and large tourist hotels, prevented from being converted into student houses. we would like all other uses to be converted to student housing. we would remove the requirement in the proposed legislation that each development the occupied by students of a certain income and instead require that the qualified educational institution needs to have at least 30% of their students in these swellings. with that, i am here to answer questions. i know kim pullman is here and would like to speak. i and annmarie are here to answer questions. president miguel: regarding this question, the housing action coalition has asked for a block of time. i would like to state a disclaimer. at the time i chaired the housing action coalition, prior

to coming into the mission, we have started the housing action coalition -- had started on this project, and held two or three meetings, including one citywide reading. it has taken quite a number of years to get the educational institutions to even come to the table, even though it is in their interest, probably. i just wanted to state that i have not been involved at all in this legislation. it is something that has happened long after my tenure with hac. >> thank you. tim cullen for the san francisco housing action coalition. first and foremost, i want to express on behalf of the collision our gratitude to supervisor dufty, who took the initiative on this were a need

existed. it is rare we see this kind of leadership, and we are grateful. this started with round tables we convened among 10 or a dozen well-known schools in san francisco. we had round tables up at uc hastings to discuss their interests and their needs, and the shortcomings of existing provisions for student housing. i am particularly pleased to have had the existence -- had the assistance of the college of law, college of arts, and san francisco conservatory of music in guiding us how this should work, what a good student housing provision would look like. i should say this particular meeting came out of doug schumaker's office that was shared by the college of chinese medicine, and iii hundred. they have trouble competing for the best and brightest, bringing

students to san francisco, in contrast to schools outside of the bay area or northern california. our housing costs are a prime factor in that. on the question of need, you have a table that was put together, some basic research. the big picture is this. there are 120,000 students at institutions of higher learning in san francisco. that table identifies a shortfall of 52,000 beds. you might look at it as an upper limit to it, but looked at broadly, just intuitively, if you had 120,000 students and took away two-thirds of them, who live with mom and dad, commute from out of town, and live in school provided housing or an apartment they do not intend to leave -- if you took away two-thirds of them, that would still be 40,000 students. it is our position, and it is

intuitive, that a significant fraction of the city's family- sized rental housing is occupied by young, non-related adults. i know i occupied four units back in the day, around the panhandle area. what we have to address, and what supervisor dufty correctly identified is the city's defacto housing policy is craigslit. -- craigslist. students compete with other students for a very scarce resource. in talking, it seemed clear that what we are up against is the policy that will define and promote student housing, something very common in other cities. the comparison we would offer is boston. in the late 1990's, the mayor said, "why are we doing this?

why should the schools themselves not provide or satisfy 50% of the demand they create?" i think there were cultural issues, old, established neighborhoods taking influxes of students. the question stood. they started a program that said schools shall provide at least 50% of their own housing needs. they waved the inclusion therein permit, 13% on site. they waived certain impact fees of about $8 a foot. you'll never guess what happened. the started building student housing units at a rate of about 1000 units a year for the last decade. it got clear incentives from the city. the city decided it was necessary and went ahead with it. you have a handout that shows a recent project in portland, portland state, 16 stories. the need is absolutely fair. what we would like to see, and

as ms. sullivan said, it should not hurt or displace any existing residential, and it should adapt to new use or new construction. we have no view of the merits of one or the other. the resulting in the staff report about the conversion of large hotels. -- there was something in the staff report about the conversion of large hotels. 100 units is not very big. i believe that is the threshold for a large hotel. it is not hard to imagine there are some hotels that are not successful in their current condition and might be better converted to student housing. i think the ordinance or rules already permit them to apply for a lottery for conversion to condo. why should we prohibit student housing as a use for that? we think it does not displace anybody, err on the side of making it more livable. we took the question of

affordability seriously. it should provide a significant fraction of the housing to income-eligible need-based students, but what i keep hearing from the schools, and what i hope you will hear from them themselves, is how many of their students are already receiving financial aid. it ranges from 60% to 80% of the students already get financial aid. we would like for the schools themselves to define who is income eligible or who needs it, and for them to make the determination themselves, based on fafsa, federal requirements, and state requirements. some schools also use private need-based scholarships, and that should be eligible to. -- eligible too. we would like to see clear incentives for this. put the weight of the city behind this, that says this is a policy area we want to encourage, we want to make

successful, and let it go. maybe sunset it in several years and see how it has performed and how it has worked. we think one thing is certain, having talked to all of our community. if the city puts lots of requirements on it are figures out how actions or fees will be part of this -- we should not give this away, we should get something for it. if fees and actions are put on it, and rules and restrictions, we do not believe it will be successful. it will add uncertainty and risk to the project. that would be the city's way of saying we are happy to let craigslist be the de facto housing policy. housing will not be built in this type because it will be seen as a tea 00 risky. we will continue to have what we have now, which is not good. this would be a win for schools, students, and the city.

i want it to be enforceable. no sneaking out. we come back in a few years and it is market rate housing? not intended for what it is designed. we hope the nsr and the hammer of needed inclusion very fees is something that will make this work. -- needed inclusionary these is something that will make this work. we would like to see multi- institutional use. small schools could band together around a building built by an entity and master lease. but the tech market risk for 50, 80, 100 units, or a few floors. several institutions could participate in something like this. they could pull it off. think of their neighborhoods in the city not far from here, which are crying out for uses like that to bring students in. these are transit first citizens of would enliven a neighborhood,

neighborhoods that could use it. and we think it absolutely would benefit the city. i would urge you in doing this to err on the side of making it easy to start doing it and get it going in a hurry to build the maximum possible, and then evaluate later on how successful it was. thank you very much. president miguel: thank you. james hass, david merkel, david stuart. >> i am jim hass. in the many years i have been involved with civic center, the issue of student housing has come up often. there are institutions in the area that have students that need housing. because of the nation -- the nature of civic center, there are other institutions that have looked at this as a good place to put housing. there are major difficulties with this. i got was involved with it. at one point, i wrote an article

which was published in "the business times," which i will give to your clark, that talks about this. it is a real problem, and it is not just the effect of students on the regular stock of housing. it is the effect of the students. i met a student who lived for a semester in his car because he could not find housing in the bernasl market. it was really tight. people are -- the people who are going to build this house in our private entities. the major universities can do it, but the smaller ones do not have the institutional resources to do it. you have to understand that. secondly, there has to be an agreement between the institutions and the private developer, and in most cases the institutions want the private developer to take the risk of building and operating it. you have to understand that. tim made the point about the multi-jurisdiction multi-

institution problems, where one developer would team up with three or four smaller ones and bring them together. the point i want to make is these guidelines seem to be flexible enough to take into account student amenities. some institutions need housing for young disputants, undergraduates, and they may want to build as part of the educational facilities for faculty or graduates students or what not. you need to be flexible enough so that those kinds of things can be built. thank you. >> thank you, commissioners. i am the director of research and planning at california college of the arts, located in the showplace square neighborhood. we are a nonprofit, independent college of art and design,

founded in the aftermath of the great fire. although we have an international reputation, we are not a large college. at 1860 students, we are smaller than many of this city papyrus scrolls. , innovative economies are fueled but intellectual capital. -- we are smaller than many of the city's high schools. as you know, innovative economies are fuelled by intellectual capital. colleges and universities need to attract the best tunes from across the nation and around the world to pursue their locations. we are not competing with each other for students. our competition is outside the bay area. wheat compete regularly with the art institution of chicago and private institution in brooklyn, both of which can add -- we compete regularly with the art institution of chicago and

pratt instutition in brooklyn, both of which can offer affordable housing. you have already heard about the craigslist problem, where we think 40,000 students are hitting each fall. these functions should be able to coexist and floors together -- student housing and permanent residents. you have already heard about the situation in boston. there is a super door in chicago. there are plenty of examples of winning conditions. this city needs college and university students. the work in bookstores, they played music in coffeehouses. they interned at design firms, and a renewed the intellectual energy of a city like ours. the compost, the recycle, the volunteer like crazy.

-- they compost, they recycle, they volunteer like crazy. then they go and work at places like aub = zinga, google. since we are struggling to provide education at an affordable level for these students, we cannot create housing in a way that generates a positive cash flow on the backs of these students. 80% of our students are on need- based financial aid. we instead have to subsidize the housing as a form of financial aid. with that in mind, you can see why no developer is rushing in to create student housing in san francisco, and with the current inclusion requirements why we cannot provide them ourselves. we urge you to approve the amendments related to the planning code, ensuring that san francisco nonprofit colleges

like us can remain competitive in attracting the best and the breakfast to add to the creative capital of this city. -- the best and the brightest to add to the creative capital of the city. thank you. president miguel: thank you. >> good afternoon. my name is david seward. i am the cfo at university of california hastings college of law. we are a public institution. i am here to speak to the benefits and fell use that student housing brings to communities -- benefits and values that student housing brings to communities at large. hastings is located at the nexus of the civic center and the tenderloin district, an area that has its share of charges. one of those is the relative absence of activity in the evening hours, particularly in this portion of the

neighborhood. i would look at other areas of the neighborhood where there is more dynamic activity. you look at golden gate at night and it is a different scene. student housing brings activity. student housing brings young people who both study hard and play hard, who support local businesses, who bring vibrancy to communities. they volunteer like hell. they engage in social activism, political activism, and they are low-impact residents. the typically do not bring automobiles. they support a public transit. the support small, ethnic restaurants, small businesses. -- they support small, ethnic restaurants, small businesses. we are obligated by state policy to make our entire enterprise self supporting. we are not allowed to redirect student the revenues or state

appropriations to support auxiliary enterprises, and student housing is considered as such. so many of the inclusionary housing policies do not apply to the university of california, but these projects are challenging nonetheless because of the need to provide affordable housing and win 87% of the students qualify for need-based financial aid. we try to provide a high value low-cost education. given the diminishing levels of public support, that is becoming increasingly difficult. it is vitally important that students who come to san francisco are able to participate in the intellectual community that they are paying to do, while providing that these benefits. i cannot speak highly enough of the benefits of student housing, the benefit students bring to this city and the vibrancy of its streets.

i think the commission for its time. -- i think the commission for its time. -- i thank the commission for its time. >> i am jason smith from the san francisco conservatory of music. i am the associate dean for student life. i want to speak in favor of these modifications. currently, the conservatory does not have student housing, and we find it more and more a disadvantage in attracting students. students have a desire to live near the educational facility. they want housing that is safe and affordable. that is incredibly important for their parents, when they send them away to school outside of their home town. schools for the most part have an interest in having students in living environments where there, curricular academic beads

and the developmental needs of students -- where their co- curricular academic needs and the development needs of students are met, particularly younger students who are not yet ready for the rental market. i see them come into my office, very upset about what they have gone through. the school has lost a lot of control over that. we currently do not have student housing. being able to provide that is another educational element to our program, one that is incredibly important to our young folks in a college environment. these proposed changes would encourage the development of new student housing and reduce the burden on the existing housing stock. i encourage you to approve the amendment to the planning code. president miguel: thank you. >> brad paul, speaking as an

individual in support of this legislation with the changes to staff has recommended. i have a confession. when tim cullen first mention this, i said "as long as it does not apply to the academy garden." i figured they would find some way to use it against us. but on more careful reflection, it is exactly them we need to apply this to. the only way we are going to get this institution back on the straight and narrow -- it is going to take not just regulations, fees, and penalties, but incentives as well. this is just the tool we need. this, as you recognize, is the map of the 17 areas they would like to move into. what we need to do with those regulations and incentives is to concentrate them in the transit-rich mid market area around civic center. this is where there are residential projects that could

buy. there are vacant lots that could be developed. there is the great building, which recently approved as a youth hostel. that is a shaky project, given the size of it. if the academy of arts or to lease half the building for students, or some of the other institutions here today, i think it is likely they could get the financing to do that project. how would this impact the city? this is what i find fascinating. these are bus routes. you can see this great long line out here to the star motel. that is the only thing it serves. this red line goes all the way out to fisherman's wharf for basically two buildings. if we can focus their residential and academic buildings in the transit corridor, the transit-rich market, the civic center area, you can eliminate these empty buses that are basically running buildings.