>> iowe have 1060 and we do not anticipate adding more. >> that is correct. supervisor wiener: the inclusion rental program is to lower income. tehe bmr program for moderate income people it would be fair to say is sort of running out of steam a little bit? since it did not anticipate an increase in the number of those units targeted to 90%-100% of ami? >> it is still a valuable vehicle for producing a certain amount of below market rate but in terms of comparing the number of units that would be generated out of the bmr program to the overall number of housing units, it is a small percentage.

>> you're going forward with 1060 and in the future will not add much more. >> we have 300 or so in the pipeline. more and more developers are choosing rental as their option as opposed to ownership. supervisor wiener: right. that option is not great to be as much -- robust as we may be once thought it would be? >> perhaps. unless the market turns around. supervisor wiener: thank you. >>supervisor olague: it seems to me in many ways the bmr program has been effective in housing folks of median income to some degree. i was going to ask aslo -- also as far as below rate market rentals, have you seen much of an impact resulting from the pauma decision and who chooses in the developers -- who choose to go rental or has it had not much of the fact back -- and the

fact? >> it has an effect and it is a complicated legal issue. i will leave it at that. supervisor cohen: if you were able to in your analysis, if you considered or started scratching the surface of looking at other assets. there is discussion within the san francisco unified school district to look at the assets that the school district has to convert that into homes for teachers that are just starting out in the workforce. can you speak to that? is it part of the analysis and if it was not, why? >> we have not looked at those other assets. >> we have to look at a broader

range. this is to make the data a bit more manageable. we imagined there would be suggestions. to examine other options. supervisor mar: the school had a study that looked at other property and they looked at feinstein school and the old sites as potential sites. and looking for partnerships like that. that is an ongoing issue for the board of education and the superintendent. my guess is that they're talking with the city as well. >> before turning over to director lee, the last slide was 120-150%. we do not have existing

programs for the 120%-150%. we looked at other financing product whether it was city financing or perhaps something that is equivalent to what has been put out for other city employees. for example, the police in the community project is something that has been negotiated by the police department and has no income limit. the teacher next door program goes up to two under% -- 200% ami. they may not require city resources but we might be able to find some outside resources to subsidize those. >> one of the policy recommendations you made was to increase the down payment for the loan assistance program. i was curious if you had -- you

were successful in identifying where that pool of money could come from. >> we wanted to leave that discussion for the policymakers. supervisor olague: thank you. >> with that i invite director lee to come out for the extended discussion. >> thank you for that presentation. i am prepared to answer any questions the supervisors may have or least attempt to with regard to the presentation and aware the city may be on the affordable housing production. among the things i wanted to note is the city has adopted a major development plans including hunters point shipyard, mission bay which has all lot -- a lot of units of housing. 32% are going to be bmr's and

they go up to 100% of medium income. -- median income. they're not completed. the shipyard is about to initiate their phase one on the hill. there are additional parcels at mission bay which are going to be developed for affordable housing. we have gone through a 20- year period with the cities had resources from the tax increment. it coincides with the decision by the board and by the city to adopt tax increment financing through the redevelopment agency which provided many of the resources both at moh and the

agency into this point for the subsidy of affordable housing development. the mayor has charged the mayor's office of housing with looking at additional resources for a housing trust fund in part to replace not only the loss of redevelopment funds but also the huge cuts that we have had in the home and cdbg programs. this is a story that -- it is an ongoing story. this is not the end. we're in the middle of production and we're taking this opportunity to take another look at whether we can do this job better and more efficiently. supervisor wiener: thank you. i wanted to thank you for taking seriously that one can invest in and value low-income housing while also acknowledging the need to improve affordability

for middle income people. unfortunately, you hear some people have the immediate reaction that if you're talking about middle income housing it must mean that you are going to somehow deinvest in low-income housing. i do not think that is the case. it is not my intent or anyone else. the fact that remains that we look at an elementary or middle school teacher according to the chart provided by your office is that 90% of ami, i do not think anyone would suggest that an elementary or middle school teacher living by himself or herself that 90% of ami is somehow well-to-do and does not need any help from anyone. and so i want to thank you for understanding thises some --

this is somewhere that we need to focus on both. to focus on one that you are not devaluing the other. supervisor mar: if there are no questions. whitaker will move to public comment -- supervisor wiener: we will move to public comment. supervisor mar: there are -- supervisor wiener: i will call some more names as well. for public comment, we will beat 2 minutes per person. at 30 seconds you will hear a soft bill. at 2 minute to hear a loder bill which means you should finish speaking. i will call names. the budget analyst, would you like to add anything? we will go quickly to the budget

analyst. >> just to give a brief overview of what our on it looked at and a couple of the findings that relate to today's discussion. we expected an audit of the city's housing policies including the planning department's role in a four will housing needs of the city. we looked at the implementation of transit oriented housing. housing in districts that are identified as transit clusters. we also looked at broadly at the affordable housing policies and took a closer look at the inclusion very housing program and its impact on affordable

housing production. and we also looked at the finance of affordable housing projects and the management of the inclusion rehousing program. the areas i want to discuss, we would be happy to return to a more in-depth presentation and conversation. the first one is we looked at the regional housing needs assessment that our seven-year targets for the city in meeting housing production goals for various income levels and found that the city historically has had some challenges to meet these production goals for very low, low, and moderate income. i do not know of the supervisors have a copy of the report but on page one of the executive summary, we have a table showing the production goals and

the city's ability to meet those goals from 1996--- 1996 to 2000. on page 19, table 1.1 will show you -- give you a feeling for where we are going in the current seven-year production cycles for the current goals we're trying to meet. in that table, which is a projection of where the city might be in june of 2014. this is based on data as of last august. from the planning department. i will discuss where we were in the last seven-year period. below 50% of ami, the city as on target to meet two-thirds of the goal and in the last period, the

city met 83% of its goals. and for low-income we're on the projection to meet 16% of the assigned goals whereas in the last seven years we've met half. for moderate income, we are on target to meet 1/4 and that is a slight improvement for the last seven-year period. for market rate housing, we're on target to exceed the goals by 13%. we exceeded that by 53%. overall, we are on target to meet the -- goals fori just wane seven-year period that we currently started started when the housing market was coming down.

there is still another two to three years left in the period. the other thing i want to talk about is the uncertainty of future funding sources. there is three reasons why we found that the city is facing uncertain financing for the future. the tax increment that came in from the areas went to a significant portion of the affordable housing development. the second is the decline of the local housing market. the inclusion mary housing that relies upon that. the third is reduced contributions resulting in budget reductions at the u.s.

department of housing and urban development as well as uncertainty in the housing trust fund which was to receive a significant amount of its funding from fannie mae and freddie mac. our recommendations are on page 69. we made a few recommendations, one was to have non recurring and volatile revenues to affordable housing. the third was the mayor's office on lowering the threshold on passing b general obligation bonds on affordable housing to a 55% vote. they is a historic president -- president in the city of san francisco. the last recommendation was to explore expanding cooperation

with housing and urban development and teir section 221 programs. >> thank you very much. we will now go to public comment. let me call up a few more names. steve, ed donaldson, tracy parents, peter cohen, jenny, i cannot read the least name. alvaros sanchez. >> i am a community organizer. i am going to read the administrator's beach.

i will go ahead. greetings, supervisor. i am a north beach resident. i have seen a lot of changes in this neighborhood. it has the highest level of the evictions in the city. when the owners purchased the building, are resided with all of my neighbors and i. the veterans who served our community and country in the beach. i often wonder what happened to the senior, disabled, and long- term residents that might cause -- call neighbors. proponents have identified this as a win-win. condo units can pay into the trust fund. i and many san franciscans

support affordable housing for all. it concerns me. property developers are able to bypass a condo lottery system by paying into the trust fund. i can only imagine the number of tenants in control units. the city would use an immense member of controlled units, many with house some of the city's most adorable residents. i ask supervisors and sentences against to perk -- san francis cans to create a long-term housing strategy where diversity is upheld. i am translating for her. >> [speaking foreign language]

>> i am a memory -- member of the united collaborative. thank you for allowing me this opportunity to speak before you and talk about affordable housing. why your having this discussion, you might also consider the needs of long-term residents such as myself. it is hard to find a place to rent. it is important to protect exist -- existing housing stock units.

and not allow apartments to convert without a plan. >> speaki[speaking foreign lang] >> of allowing conversions, condo conversions without restrictions on not only means the loss of existing units which affects middle class and lower class folks, it might have an increase on evictions. usually the ones being evicted are the long-term tenants. >> [speaking foreign language]

>> actually, my family and i live in a single occupancy hotel unit. we have applied for affordable housing so many years. we have not been lucky enough to get into any one of those units. the existing rental housing control unit is a problem for all tenants including middle- income tenants that have difficulty paying rent. not to mention folks like myself. we should increase the supply

for affordable housing units so that it is family oriented. >> thank you very much. next speaker. >> good afternoon, supervisors, or early evening. i am with the community housing organization. i wanted to kick it off. there are a number of folks from our member organizations. this is a coalition of 20 member organizations. organizations including development, housing services, and advocacy. a lot of people had to peel out, it was a long afternoon. there was a tremendous amount of data presented. i want to thank the comptroller's office for trying to package it all. this is the kind of stuff that we deal with on a regular basis. to digest it in a presentation

is tough. it was inclusive. there are a few things i want to emphasize. we are not trying to get into an us and them. when you use the term middle class, it is a very evocative term. we are not concerned about looking at other housing categories above the low and moderate. it is important to think of housing as a continuum. it is hard to argue that at the lower and that folks have fewer options. they have less room for failure. we tend to focus their. you move up the spectrum and there are needs. we would like you to approach this as not a menu, but they continue on. there was also an important thing about funding. we lost $50 million this year. we need to focus on that first and add where we can.

the last point was an inclusion mary program. that is how we get moderate income housing in san francisco. i think that it has been quite effective. we have 1200 units on the streets. that is as effective as it gets. >> hello, supervisors. my name is amy. i am the interim director at the housing center. thank you for hearing us out today. many thanks to the staff and the city to put together this good information. a very revealing. the neighborhood center has been developing housing in neighborhoods throughout san francisco for over 30 years. as an affordable housing

developer, i am committed to insuring housing that answers the need to the very of -- the first housing population. it is an opportunity for a very realistic conversation about how we as a city prioritize the use of limited resources. we are talking about money, but we are also talking about legislative filming, all of the tools we have put together to make land-use decisions. the data put together that the legislator and the budget analyst did, it is a good starting point for this discussion. the data shows that from 1999- 2006, we have exceeded the market rate of housing goals by

53%. and we're projected to again do that. i am not going to go for the rest of what we had to say. when we exceed goals, but also affects the goals that we have in place for long-term housing. dreamily low categories by the previous goals that were set, those goals were all increased. increased market rate production. you have to increase the goals. thank you very much. >> thank you. next speaker. >> i am whitney jones. i am a moderate income renter in san francisco. we provide services to low- income san francisco residents of private housing.

we also develop and operate low- cost rental housing in san francisco. we think it's important, while we recognize the need for moderate income housing to be built, we are still producing housing for low-income san franciscans. that group that will never be served by the market. moderate and middle income residents are a solution to the housing issue. we do not support tic's ellis acts, and we would hate to see that be part of the solution. we are not opposed to the middle-income folks. we understand the need for housing to be affordable for all san francisc andans. --

franciscans. we do not really have a handle on the production for moderate and low-income people. anything that is being produced by the market for moderate income people is not being counted. when -- we do grant that the production of housing is so expensive because we do it ourselves. we need to find ways to produce housing a lower-cost sit, not by devoting financial resources, but finding ways to work together. >> good evening, supervisors. i am with the housing development corp. we are hud-approved on the

southeast side of san francisco. i can appreciate the need for low-income folks as well as the replacement of the tax income financing. in particular, an affordable housing trust. i am here to represent two constituent bases. foollks are facing foreclosure or have been foreclosed upon. both are fragile. both are attached to the migration of african-americans in san francisco. the national low-income housing corporation has suggested that there is a significant need for low-income housing in san francisco. last year, we lost close to 1000 units in san francisco. we lost about