regarding the legitimization program in the eastern neighborhoods. as you recall, you reviewed legislation to extend the deadline for that -- that legitimization until the fall, as i recall. on may 23rd, next wednesday from 6:00 a.m.-6:00 p.m. to 8:00 p.m., we agreed to meet to talk about that program and how business owners or property owners can take advantage of that legitimization program as well. i think that is the end of my report. unless there are questions. commissioner antonini: i appreciated the commerce and industry report. and as director ram said, it is impossible not to have a little bit of a lag, but there are some different things in there now as was the case.

employment in general is probably a lot more optimistic that it was in 2010. >> good afternoon, on -- commissioners. i'm here to give you your weekly report on the board of supervisors. there was nothing at the land use committee this week. the board of supervisors did have a lengthy meeting to make up for it. they had final readings on a couple of ordinance says that you previously considered. the first was an ordinance from supervisor mar that will allow a 5 ft. increased for certain active use is in the richmond district. you heard this ordinance on february 6th and your recommendations were incorporated into the ordinance and it did pass this week. similarly, articles 10 and 11 now sponsored by supervisor wiener and olague passed on final reading at the board of

supervisors. this is the historic preservation commission into the planning for early and incorporating into this body. it has now been adopted by the board of supervisors. there was an appeal for the conditional use authorization for 8 washington, as well as a ceqa appeal for this project. this is a proposal to demolish a gateway existing club and put in a new health club and residential buildings. two to 12 stories with about 130 four dwelling units and ground- floor retail. these two appeals were combined to save time. nonetheless, the hearing ran past 1230 a and the primary concerns vary from the lack of recreational facilities and parking impacts

to financial considerations, such as what are the public benefits, including those for affordable housing and are they sufficient. urban design and flow on the waterfront were also questioned. the district supervisor and board president chiu led the questioning. the supervisors felt the puc and cu were being authorized and he felt that this was reflecting a high increase that had not been addressed. this was due in part to the timing of the appeals. whereas this commission typically considers things first required by law, then the policy document and the general plan, and then on to the zoning map and finally, entitlements. at the last hearing, this was different for the board because of the appeal. the only considered ceqa first

and then entitlements. the height reclassification will return to the board in june, as will the development agreement and on tuesday, after most of the discussion, the first discussion by president chiu was to table the eir. the eir was then certified 8-3. next there was a motion by seau to eight -- to consider a continuation hearing. the last was an authorization of the cu vote and i did pass. -- it did pass. then there was administrative code to add limitations on eligibility, application deadlines, to add a timeline for the receipt of the report and to make various changes. this will be scheduled for you

in the near term. and there were a couple of ordnances that were introduced and that we have been working with the mayor and staff on. the first is the transportation sustainability fee. i believe the director has provided you with a great deal and the second was the impact fee and the development out date. -- updates. that concludes my board report unless there are other questions. thank you. president fong: and the board of appeals did meet last night. one item before the commission was an appeal of the wireless permit for 156 27th ave. it is in the public right-of-way in front of that property. it is a permit issued by the department of public works and is in the public right of way. we do review those, in this case, because of what is on a good view street. we found that it was compatible

and the board of appeals disagreed with that and actually denied a permit. they denied the wireless permit for that location. also, last night was that the president might garcia's last hearing. he has been on the board of appeals for seven years and prior to that, the ethics commission for two years. he has been serving since i have been on the board of appeals. he has been a consistent presence along with me and commissioner ssu cink appeared -- commissioner sir jacsuchenko. i found him to be very prepared and fastidious and funny as well.

it has been a privilege to have him as a commissioner on the board of appeals. we wish him the best of luck in his future endeavors. >> good afternoon, president fong, members of the commission. i'm here to present this week's report at the present -- the historic preservation commission. on may 16th, a certificate of appropriateness to changes at the location that is part of the housing at laguna appeared along with the project sponsors, supervisor wiener spoke in support of the project. the vote was unanimous to

approve the commission. also at this hearing, a delegation of the mining department. this delegation has lowered the cost and helped streamline projects that otherwise require a public hearing before h pc. at the conclusion of the hearing, they directed staff to further provide information on how to improve the review process and help reduce cost and time for project applicants. we intend to provide more information in early july. unless you have questions, that concludes my report. >> commissioners, we can move on to item no. 7 in the director's report. this is the 2011 housing inventory report.

claxton afternoon, president fong, commissioners. i'm with the city wide policy planning section. i'm here to talk about the 2011 housing in a tory. this is an informational hearing and no action is required. i would like to remind the commissioners that over a month ago i was here to talk about how the city is sharing with regard to the 27 -- the allocae arena targets. the numbers come out of the housing inventory. new twosomes -- due to circumstances beyond our control, we present the report

separately. in the future we will buy the book reports in a presentation. >> what is the housing inventory? >> is an annual report documenting changes. these changes include demolitions that take away units from the housing stock, and alterations. depending on how many units are added to the residential structures, conversions of commercial housing uses, and how many are removed through mergers of existing units, removal of the illegal units, or conversion of housing for commercial use. we will end up with a net gain or a net loss. a housing inventory also presents data in a format

analysis. the housing and a jury has been consistent since 1967. the 2011 housing in an torrey is the 42nd in a series. we track new construction, demolitions and alterations, reporting on the annual net gain to the city's housing stock. this is on a citywide basis and also by zoning classification, by planning districts, and by building type appeared -- building type.

appendices in housing amendatory contain lists of major housing projects in the pipeline. those that have been reviewed by the planning department, those that have been approved, and also projects that have been issued permits by dbi. the housing inventory also tracks housing production and planning areas. the in neuflize -- in-neuflize collected are also -- the in- lieu fees are tracked as well.

one-third of the units that are tracked in san francisco our single family. the housing inventory uses the semiannual senses to come up with a baseline number for the city's housing stock. we're less able to track the housing stock by building type -- single-family, small multifamily structures, such as duplexes, and the larger buildings that are 20 units or more. in addition to counting sro units, a separate housing units also count mobile homes and artie's and vans and houseboats, which account for a number of units of this type.

418 new units were built for an expanded -- expansion of existing structures. this is just 12% of the 10-year annual average of 2300 units. 65 units were merged or removed via legalization of legal units or conversion to commercial uses. 84 units were demolished. 50 two units were used for the -- 52 units were used for the partial demolition to make space for the 1400 unit plus project. in addition to the city's housing stock is two hundred 69 units. about 80% of these units are in multifamily units of 20 units or more. this chart shows we are at the

lowest we've been since 1993, which was a couple of years live from that 1990-'91 recession. this is 61% higher than that permitted in 2010. permits issued stand for housing starts of frequently cited -- a frequently cited in economic indicator. this chart shows housing completions in black. permitting activities started picking up in 2010 with 2009 at

the low point. the chart also shows that generally, there is a to a three-year lag from completion start -- from start to completion. a number of the larger projects in 2007-08 were brought to a halt. we are seeing these projects caresuming construction. i never were started last year and we will be seen -- a number were started last year and we will be seeing completion of these projects. a new report shows that about four thousand two hundred units are currently under construction -- 4200 units are currently under construction. we expect to see the numbers in the next two to three years.

despite being -- despite the and planning in talmadge, the commissioners last year approved 700800 -- 700 to 800 new units. before that, the indictment included 10,500 units in candlestick point redevelopment. there are currently 64 -- 6400 units under planning review. as for affordable protection in 2011, 218 new units were added to the usable stock. this makes up about 50, over

half of the units for 2011. this chart shows affordable housing from 2007-11, averaging how many units are affordable. this is higher than the previous average of about one-quarter of all production in the 10 to 15 years previous. these numbers show how the affordable units break down, 140 units were affordable to very low income households, which is two-thirds. 21 units were affordable to low- income households, and 57 units were affordable to moderate income households. this last one includes 11 inclusionary units that were -- are affordable to modern income households, and the remainder were smaller units that include

legalization of illegal units. other items from the housing inventory include sections of the new condo conversions, which went out -- went up, more than doubled from 700 up to 1600. condo conversions went down in 2011 by 12%. this is the second year in a row that condo conversions went down. while the number of sro buildings went up by six buildings, the number of sro rooms went down by 140 rooms. the number of non-profit sro's increased by one, but with an additional 67 units. however, the number of for- profit sro's lost 110 units,

even if the numbers went up by five. two affordable residential hotels with about 330 units were rehabilitated through the mayor's office of housing in 2011. the previous year, only 54 units were rehabilitated. inclusionary fees collected in 2011 totaled $1,173,628. commissioners have expressed interest in tracking residential redevelopment as it relates to a more frequent basis. this is the chart we tend to include in the quarterly reporting. there's also legislation for staffing that i believe will be presented to the commission in june.

in august of last year, production from 2007-10 in response to a rina targets as well as residential activity for the first two quarters of 2011. we're not able to submit subsequent reports, but we intend to resume quarterly reporting, and this ship -- this slide issuing a simple graphic, accounting for activities during the first quarter of 2012. the numbers represent units for both market rates. i guess this is not as clear. but we could give you a clear charge. the numbers are for both market trade and affordable housing units. we're not breaking down for the sake of simplicity. it is just affordable verses market rate. because the number of units will vary, we believe it is simple

percentages of data. given that the targets were affordable units at 61% total, we have said that read bar. it is the red line that easy. the affordable units is shown in light blue and we can see how it is gauged in relation to that far. the first bar shows what has been entitled by the planning department. it is 98 units. the second bar shows the number of units in places that have been issued building permits by dbi. that accounts 457 -- that accounts for 57 affordable units the third column shows how many were built in the last quarter. that is 29 units that were affordable verses 203 market-

rate units. as you can see, we ourselves -- we are quite below the are. staff column shows how we have done in the last five years from 2007-11 as regarding the irina targets. this is taken from the presentation about one month ago. we would welcome feedback from the commission as to the readability of this chart, as well as the arena tables we presented a month ago. that concludes my presentation. i'm here to answer questions that the commissioners may have. thank you. president fong: thank you. any public comment on this report.

>> this is linda chapin. many years ago, many housing advocates worked on saving the residential hotel. i'm happy to hear when there is progress. i am concerned about -- and i will talk about it later today, student housing and the amendment that could be adverse to that. i'm always concerned when these things come for a conditional use. i talked about one on nob hill on high street that was allowed to cease being a presidential sro.

i was told it was not being used for residents, only in the sense that they were required to check out and check in and so on. there have been a lot of games being played with these residential hotels. they're like the most precious housing stock. everyone that we can mention -- that has been captured that we can mentioned by nonprofits is a blessing for the city. we can't speak to those things as they -- and we can speak to those things as they come up. thank you >> ssu hester with a

couple of comments. one is, there is legislation wandering through the board -- no, it does not come to you because it is not a planning code amendment -- conversion of apartments. what we are not getting is the hotelizauion of apartment buildings. golden gate has transformed many units into hotels. they rent them out to corporations who ran them out for a short time frames. and that is a substantial loss of housing, particularly when it was billed as an affordable housing project funded by hud. not low-income, but moderate income housing. the second thing is i had a hard read -- hard time reading that chart. the one at the end. i'm hoping it becomes really clear. i will talk to staff about it. but what i want to say in

advance is that it is one thing to have a quarterly report, which i certainly understand if that is how you want to measure it. the only thing is to make that report visible, every single project. i'm going to argue that once the quarterly report is done, that the report appear on every single housing project. you do not have to tweak that numbers for every housing project. but it should be a matter of attention. it should be in your mind and in your eyes, and in our eyes every single time. i'm kind of surprised that more people are not here because the housing report is a big thing as far as i'm concerned. but i appreciate the report and i am looking for to tweaking the little thing on how you are meeting the goals so that it really pops out and you can understand it. thank you.

>> good afternoon, commissioners. i want to draw your attention to the report that was done for the moderate income housing hearing that the supervisors had a few months ago. the report said that moderate- income renters are accommodated by the rental stock that we have in the city that is not subsidized. in other words, the report that went to the supervisors said that market rate rentals is moderate-income housing and for that reason, that city should not be subsidizing that because it is rental stock and that is a demanding that. but in the planning report that is something you do not consider. the only thing you consider moderate income housing is a housing that is subsidized and regulated. and that is not what the state does.

the states that it is not luxury single-family homes, basically it is a luxury. we beat ourselves up in san francisco by saying that the only thing that counts as moderate income housing is subsidized, you know, rent restricted housing. when actually, the modern income report said that rentals are moderate income housing and people of moderate income are able to afford market rate rentals. and we are building a ton of market rate rentals. i would speculate that 80% of the housing are going to be market rate rentals. for some reason, we do not. we only produce 05% of the modern income units.