the first revolving loan applicants. [applause] >> thank you all for coming. i did not really expect to see all of you here. 15 months ago i was laid off. with $25 and a big dream, i often -- and opened a little coffee shop. amy came around six or seven months later asking if i would like to open another one. i said, if you believe in me, i will take a chance. the biggest gamble ever did. mayor lee, your staff rocks. thank you so much. i know what i do open, each and every single one of you can come and check out blue bottle coffee and single origin and chocolate. thank you. [applause] >> all right, in addition to all those departments that i mentioned earlier, i want to thank mohammed nuru from the

department of public works to build ginzberg from rec and park, adrian, jose, von, tiffany, and lenita from the community challenge grant. and juaquin. thank you. portola, portola, portola neighborhood. thank you for coming out to the portola neighborhood today. [applause]

supervisor mar: this is the monday, april 9, 2012 meeting of the san francisco board of supervisors ladies and economic development committee. to my right is supervisor cohen, to my left is supervisor wiener. we're joined by david campos. lisa miller, give us the announcements. >> silent electronic devices,

and completed speaker cards or documents should be submitted to the clerk. items will be on the april 17 board of supervisors agenda unless otherwise stated. supervisor mar: item one. >> resolution authorizing a grant in the amount of $180,000 to implement existing commercial buildings energy performance ordnance. -- ordinance. supervisor mar: mr. rodriguez? >> guillermo rodriguez. the department of the environment was awarded a grant of $180,000 to support the implementation of the existing commercial building performance ordinance. it was adopted in february of 2011 and requires each commercial building 10,000 square feet or greater to

annually report the energy performance, conduct an energy audit every five years, and direct the department of the environment to make transparent all of those findings. the grant funds will be used to support the implementation of the program and promote the collaborative effort in making sure that we can have a robust program. the department thinks the foundation for their support of this program. supervisor mar: any questions? let's open this up for public comment. is there anyone from the public that would like to speak? public comment is closed. can we move this forward without objection? can we do this? great. thank you. miss miller, item number four, without objection ahead of item number two.

>> to consolidate eating and drinking establishment definitions and the subject the newly defined uses to formula regional controls and bars and restaurants. supervisor mar: think you for listening to neighborhood organizations and working with them to make sure that this resolution was supported by everyone. thank you, supervisor wiener. supervisor wiener: this legislation will dramatically simplify our permit process for food and drinking establishments while maintaining significant neighborhood controls and formula retail controls to make sure that we protect neighborhood character. last week, i and planning staff described the legislation in great detail. i also introduced a number of amendments based on extensive outreach and feedback with

various neighborhoods and other stakeholders. the committee adopted those last week that caused continuance to be required. over the last week, the support for the become -- legislation hn

growin

>> maybe we can wait a moment until supervisor kim's office gets here. and i know we have a lot of affordable housing and a tenant organizations that are here with us today, i thank you all for coming in showing the importance of this issue. we are joined by, not just the three land use committee members on this side, but supervisors kim, campos, and olague. it is great to have all of you. i need to the knowledge that we have reached a quorum, but this

has been duly noticed on the land use agenda. take it away. >> supervisor mar has outlined the basics of the hearing with supervisor campos for the affordable housing policies and programs. we have had several hearings over the last couple of months that shows a tremendous need for affordable housing in the city. we held a hearing on the shelter system, we heard testimony about the difficult time people have in the shelter system not only obtaining shelter reservation but accessing permanent housing. we also heard from residents about the impact of foreclosures.

we will hear presentations from city staff and comments from many of the residence and constituents that are here today. in addition to the land use committee, we are joined by supervisors campos and olague. we want to better understand the needs with the various income levels. to understand the source of funds at the federal, state, and local level. and began discussions with the production gap. many of the advocates, we have a housing trust fund that is a local and permanent source of funding, something the city has not had a number of years since the expiration of the bond for

affordable housing. we thank city staff and advocates on a solution, and hope that it helps the discussion taking place. we will be hearing brief presentations from the budget and legislative analyst's office. the planning department and the mayor's office of housing. the supervisor and his staff helped shepherd the audit. >> to want to thank the chair and the members of the committee for giving me the opportunity to be here today.

as a supervisor kim indicated, we are facing a housing crisis in san francisco that is impacting san franciscans, if you have been looking at the production patterns of come portable housing and compare that to market rate housing, you know the production is out of balance. it is out of balance in such a way the own report on the his

points out that it is, in fact, not affordable. which is why as a supervisor kim indicated, there are working on the housing trust fund, it has benefits to the city and county of san francisco. at the board of supervisors, we recently held a hearing on foreclosures that is something that is impacting the city in the southeast part of the city. we also last week talked about

the conditions and shelters and the fact that many of our shelters are not acceptable -- accessible to the extent that they need to be accessible. there are a number of issues that need to be addressed connected to this. at the regional level, we are as a region engaging with discussions as to what the future of the region will be, when it will look like, it is at the forefront of that discussion, that the housing and transportation are the two biggest sources of the expense for the family, and he looked at the difference that is being considered at the regional level, those requiring a low- income family spend up to 85% of their income on both housing and

transportation. unless we do some thing to address that issue, but-income people -- but low-income people won't be able to live here. we request that the budget and legislative analyst conduct a very comprehensive audit on the city's affordable housing objectives and whether or not those objectives are being met. including oversight, the effectiveness of meeting the housing needs. and the implementation of housing development projects as well as the ability to implement regional housing plans and looking at transit-

oriented housing. it makes the case for why we need to pay better attention to this housing crisis and provide some context for the magnitude of what we are facing. it is something that i think represents a real challenge for the city. if we are going to be the kind of city that we want to continue to be, we will have to address this issue. not only as a city, but as a member of the region. i want to thank my staff that has worked diligently on this for the past few months. i also want to thank my ha legislative analyst's for the jobs that they have done had of the departments that have been cooperative. i will turn it over to of supervisors kim. thank you for being here today,

i look forward to the discussion. supervisor mar: i wante dd to add that this is important not just for the neighborhoods of the city, but the west side as well. it prevents displacement of working families in the kingdom hot report really shows that we are not keeping up with the need for low-income but also the types of housing home that working families in the richmond district are working. the report shows low-income and moderate-income isn't there. we are not meeting anywhere close to the need for housing, and also, the affordable housing also creates jobs. already noted is the national association of home builders that even 100 new at low-income

housing units generate more than 120 construction jobs. when construction is complete, and support roughly 30 jobs and a wide variety of industries. the building of affordable housing benefits putting people back to work and keeping working families in the city. i applaud you for bringing this issue to us. >> thank you, chair mar. i want to thank the house and advocates that have been working really closely. our legislative aide has been staffing this issue. they kind of articulated what came out of the hearing. i want to call a the budget and legislative office.

>> i am from the budget and legislative analyst up as -- office. will present a brief overview of the findings and recommendations. kay harrison enhance and smith are the subcontractors that worked on the audit. >> i will be presenting some highlights for the budget and legislative analyst's programs. i have the power point presentation on the computer. as with the performance of eds, we conducted in accordance with

the auditing standards. they have four main focus areas , those included in the planning department oversight of housing development. funding sources and implementation of housing development policies to implement regional housing policies. i am going to briefly highlight the major findings and give a little bit of background. it defined affordable housing as housing that cost no more than 30% of the annual income. the general plan, 43% of the d p rental households over pay for their housing and 39% over paid according to the standard.

you will see a table showing the housing goals from 1999 to 2006. these are developed in order to meet the housing needs within various income categories. o the seventh it is was able to meet about 86%, the city was well below its goal for the low and moderate income categories. we evaluated it until 2014 and will discuss the findings related to that in a moment. the mayor's office of housing in the san francisco housing authority have been the main developers of affordable housing in san francisco. it takes about 38% of funding

sources. affordable housing charged to developers, built by developers, tax credits, and financing provided by hud. it is the second source of financing after the tax credit. the dissolution will have a major impact on financing for affordable housing projects. every seven years, it develops housing allocation that establishes bay area jurisdiction as mandated by the state. the fair share of this allocation is incorporated into the housing element of the general plan and the primary document for the housing policies. historically, san francisco has

never met its housing goals other than for market rate housing. the city is on track to make 2/3 of its goals for 2013 with a large gap and moderate income housing -- in moderate and low- income housing. until recently, the planning commission received limited information on how approval of housing developments meet the goals of the housing element. while they supported goals for the planning commission to meet goals last august, these reports should incorporate more detailed assessments of current and future housing production and the achievement of housing goals. we recommend the planning commission report on the process and organize a workshop on the process for commissioners.

we included data on the income level for any proposed project. including how such units would address the share of the regional housing needs. we recommend the director resume providing the planning commission with quarterly housing production report and expand the death of the information included in the inventories reported to the planning commission. while regional plan has not yet been implemented, the association of bay area governments expect to develop a long-range plan by 2013 to comply with state legislation. the plan for housing can be a identified in several area plans and zoning districts. the increased density while promoting affordable