tuesday, september third, 2013, happy, labor day weekend. and we have welcome everyone to the commission on community investment and infrastructure, call the role. >> item one, roll call, members, respond when i call your name. >> ellinigton. >> yes. >> modejar. >> here. >> rosales. >> here. >> johnson. >> here. >> singh,. >> here. >> item two, announcements, a, the next schedule commission meeting will be a special meeting held on tuesday september 17, at 4:00 p.m. at the center for it is arts, and the announcement of the sound to producing devises, the ringing off of the cell phones

and pagers. >> the member of the public have three minutes, unless it is adopted shorter. it is recommended that the members of the public who wish to address the commission, fill out a card and submit the completed card to the commission secretary. the next order is item three. action taken in closed. if any, and there are no actions, the next is item four, matters of unfinished business and we have no items. >> next is four, items of new business, consenting of consent and regular agenda.

>> 5 a, approval of minutes, july, 30, 2013, and approval of august 6, 2013. >> commissioners you should have received, two sets of minutes for june 30 and august 6th. and are there any public comment on the minutes? >> and i have no speaker cards. >> thank you very much. >> i would like to entertain a motion, first for july 30th and then for august 6th. >> so moved. >> is there a second? >> ellington. >> aye. >> modejar, >> yes. >> singh,. >> aye. >> johnson. >> aye. >> five ayes. is there a motion to approve the minutes from august 6th? >> so moved. >> second? >> second.

>> thank you very much. >> call the roll, ellington. >> aye. >> modejar. >> aye. >> singh. >> aye. >> rosales. >> aye. >> johnson. >> aye. >> five c,authorizing an

amended and restated loan agreement with bayview supportive housing, llc, a limited liability company (consisting of bayview hunters point multipurpose senior services, inc. and mccormack baron salazar, inc., a missouri corporation), in a total amount not to exceed $19,111,224 and authorizing the executive director to enter into a ground lease option agreement with bayview supportive housing, llc, both for the development of 120 very low-income senior rental housing units plus one manager's unit at 1751 carroll avenue (formerly known as 5800 third street, lot 3) (assessor's block 5431a, lot 042). (discussion and action) (resolution no. 42-2013). >> good afternoon commissioners and members of the pub, thank you for joining us. commissioners this particular item, this provides, for gap funding for the carroll avenue, senior housing as well as an option to ground lease, the previous commission took various actions prior to disillusion, and it is tied to the choice, neighborhood grant, and then to the alice grifth,

and then the bay view community has been in planning and development for a new senior center as a part of a mixed use project for well over a decade. so, this is a truly moment yus day brought before your consideration for today, with that, i would like to ask the staff to present this item.. and this is pam sims and a project manager in the housing and development and i am here before you this afternoon to present on item c, this is funding and a ground lease option associated with the development of the carroll avenue, and senior housing and cash and i may refer to as cash, and in the former bay view hunter's point

redevelopment area. this is comprised of 3.8 million in predevelopment funding which is in the contract to the construction and the permanent financing of the development and the authorization of the ground lease option will provide the developer with the control until the ground lease is prepared and authorized by the commission both and the land and ground lease is necessary for the development of the carroll avenue, senior housing project which includes the very low income and rental housing units and a ground floor senior center that will serve the residents of the development and the residents of the larger community. the need for affordable housing for the seniors on a fixed income appears to be a high

priority, according to the 2010, 14 consolidated plan, this is approximately 175,000 and is it expected to grow to approximately 280,000, by 2030. and additionally, the creation of a larger and more accessible senior center was included in the bay view concept plan over a decade ago, now, and then, the project area, redevelopment plan. and the approval process, for this development began, approximately 3 years ago, and in september of 2010 when the redevelopment agency commission, authorized the purchase of the 5800 third street site and shortly there after the commission approved an amount of $684,000, there was a predevelopment loan allocation of 3.2 million approved by the affordable housing committee which will be assumed and be part of the

larger 19.1 million dollar loan, finally in february of 2013, the over site board approved the 20 million for the senior housing development as part of the 13, 14 a. and in august, in august, 2011, alice griffith was awarded choice neighborhood grant funding subsequent to the award, the senior housing development was identified as the first phase for the off site housing for the qualified residents who may want another housing option. while, all public housing units will be replaced on site, any qualified residents who may want to live in a senior community, with the access to a variety of services along third street will be prioritized to live at the carroll avenue,

senior housing development. >> i just wanted to show you, that the site map for this development, and the lot three is where the senior housing and the senior center will be created. lot one, is the two lots facing third street and currently there are market rate condos that are there and the fresh and easy on the corner of carroll avenue and third street. and then there is a couple of restaurant adjacent that are doing well very and then lot two will be the development of the family housing, by a private developer and it will be market rate, housing. and this is our development. and the lot 42, i am sorry, the lot 41 development. and the carroll avenue senior

housing development consists of two wings, the bulb building will be the connection between the two wings, the ground floor of the building will be the staff for the senior center, and then, as you go up to the various floors, there is the more common areas, the laundry rooms and the sitting areas for the people to come out and communicate with each other and form community. the interior of the development, consists of 117 one-bedroom and 4, two-bedroom units for a total of 121 units, this will be one manager's unit. and these this housing units will be within the five floors. and floors two through five will contain the residential

units. and common area, amendies again, include the sitting areas, a living dining room and exercise room, laundry areas that are sprinkled throughout the development and adds to the community living experience and prevents the isolation that plagues the senior community, the bay view senior center will be relocated from the current sight the 1706, to a larger site in the senior housing development fish, to the relocation of the meals program, the ex-offender and the third party, rent and payee will be relocated to the new site. population, who will live, at carol avenue senior housing are seniors age 62 years and older. and all units will be offered to house holds at 50 percent ami. or less. and so, 50 percent for a one bedroom house or for a one

person household is 45,450 annually. and 47 of the units will be targeted to individuals who will be paying 80 percent of the income and that is from the additional restrictions and all 120 housing units will have the residents paying no more than 30 percent of their limited income toward the rent and that is because the project has received, the project based section eight for all of the units. >> priority populations will be the previously stated alice griffith residence and the certificate holders and 23 units will be set aside for homeless residents who will be referred by the department of public health, direct access to housing programs, potential, referral sites will be the south east community, health center and the providence foundation. and as is typical in affordable housing developments, the carroll avenue senior housing

development has the potential of the six different funding sources for the project. and from the office of community and investment and infrastructure 19.1 million, and there will be tax credit equity in 20 million. and tax exempt bond financing 25 million, failing infrastructure at 5-6 million, the section eight that i previously mentioned will actually allow the developer to secure the private debt in approximately, 8.5 million dollars. the 19.1 million dollar loan as i previously stated is a combination of the 15.3 for construction and permanent financing and 3.8 in predevelopment loan funds, since the loan committee in early august the senior center fupding was restructured and instead they are using the

non-restricted funding for the senior center and also the staff members from ocii and the mayor's office of housing and the community development and the developer were able to lower the debt credit ratio amount from 1.30 to 1.20, which means that the developer is now able to secure more private debt because there is less of a payment on the private debt. and the developer was also able to renegotiate a higher equity pay in amount from a dollar nine to a dollar eleven, and so all tf meant additional dollars, and the bottom line is the additional dollars coming in from the development and the good news is that the ocii request was reduced by 800,000, and the terms of the loan will be 3 percent interest for 55 years. resit youal receipts payments will be made toward the ground

lease and the loan as repayments when remaining cash is available. ocii will retain control of the land through a ground lease throughout the construction period. at project close out, the loan, land and ground lease will all be transferred to the mayor's office of housing and community development per the board of supervisors resolution number 12. which named the housing. >> and the ground lease option demonstrates the project readiness to the california debt limit committee and the tax credit allegation committee which are two funding sources for this development. again, the ground lease option will be in place until a ground lease has been negotiated and authorized by the commission. the agreement, this loan option agreement is typical of the first step? the in the ground lease process, it will go into effect by the start of construction

which will allow the development on the site. the community. the bay view community has been a consistent and enthusiastic supporter of the carroll housing senior housing development and especially the senior center. and as part of the community, the project area, committee, was always very supportive of this development. and if in fact, i would go to a meeting and i had not reported on the project for a couple of months, the questions would be raised what is happening, are we on track? what is going on with the project. and which was nice to hear. and as recent as may of this year, the development received support from the community at a community meeting, actually that was held in the bay view to discuss the specifics of the development. this, so the schedule. so, as you see, the next steps are coming up pretty quickly on

september 13th, tax credit application and a sidlac, application will be submitted and the ground lease will be brought to you in september for your approval and in december, we will go to the board of supervisors with the 33433 report, the ground lease and the bond issuance. push march 2014, we expect to close and that is no later than date and hopefully we hope to close some time in january or february. and the marketing plan will be submitted in the winter of 2014. and it will be reviewed by both ocii and the mayor's housing of development staff and marketing will begin in the summer of 2015 and in the fall of 2015 the development will receive the temperature certificate of occupancy and finally by the winter of 2016, the developer will have closed out the

project, the loan and the ground lease and the land will all have transferred into the mohcd. and the developer has worked continuously with ocii staff, to meet the terms of the bay view hunter's point and employment and contracting policies, the architect for this project is david baker partners, with michael willis who is an mbe but he is not an sbe. therefore the developer has fallen short of the sbe goal, with only 35 percent participation during the previous development phase. that said, the developer is committed to achieve 50 percent sbe participation during the construction phase of development. that concludes my presentation, and i would like to introduce members of the development team, and other fans who are

here to support the project. and let me make sure that i got everybody. from the bay view hunter's point we have cathy davis who is the executive director miss picins who is 97 years old and kendricks and kinser and we have falicila tibito and linda richardson is a member of the board, dr. walker who is a president of the board and unofficial oscar james is here to support the project. >> and we have lisa free man and flores and gravile and any of us will be happy to answer any questions that you may have, thank you. >> okay, thank you very much. do we have any public comment on this item? >> madam chair, the first speaker is james.

>> good evening, commissioners. my name is oscar james and i am a native residents of the bay view hunter's point and i am kind of sad that i am the first card that was called. but this is one of the programs that we started in model cities. over 40 years ago. and it was one of the successful things about it is that we have four programs, out of the model city program that has been successful and this is one, this is one of the jewe ls *f our community, when dr. davis had taken over, the senior, complex, he had a vision of building this development to put quality for our seniors in our community. and when we first started this program, i was in my twenties and i am now 67 years old and so i do qualify, to stay in this unit now.

but, one of the things or the quality of this particular program, all of the people that have benefited over the years any other senior complex in the city and county of san francisco has been as successful and dedicated as this particular program. and i hope that you guys approve this. and if they want additional money to approve that, and you know, we just, you know, thank you for trying to make our community a part of the city and county of san francisco, because i know what we were. and with this particular project and other projects that can enhance our community, i said, thank you and i hope that you pass this as in this particular program. thank you very much. >> walker?

i have the pleasure to be elected as president. i served on it while she was the president of the board, and so, the board of directors, and elected me, to fulfill that deposition. before that, i worked very close with dr. george davis, and i committed at his... that i will continue to work to see that his vision, of being materialized. and so for the next was we talked about a monument. that was adequately and properly represent, the bay view hunter's point and we believe that this and that the campus will do just that and i will take the mayor's office of housing and preparing for the outstanding opposition to you and i want to thank you, in advance, because i can't see no

other way, in which you approve in this loan today. i also work with the organization and making sure that all of the various things that are going to be approved as far as the shipyard, and the point plan and hearing today and we get closer, and i believe that we will be number one as far as those housing are concerned, and when you looked at the category, and those persons that were not able to further themselves to come up with the funds to be able to house themselves, and it was just so honorable to be here to talk about getting this project approved. and so for those seniors and aging and to have a positive relationship in our community. >> thank you very much. >> okay. thank you, we have no speaker cards. >> okay. thank you very much for the

presentation. and i would like to, i actually want to start with a couple of questions i have and open it up to the other commissioners, would we just review, i understand that there were some, there was a request in the loan committee to reduce the amount of the loan amount coming from sfr, slash the mayor's office of housing and i know that you said it and i know that it was a document, or i would love to go over again, how that was done. and so how you were able to. okay, pam, what we did, was the debt credit ratio was 1.30. and 1.30 is very high and it is above our underwriting guidelines and they are 1.10 and 1.50. and the reason that the bank

and the lenders and the equity invester wanted the higher debt coverage ratio is because it gives more wiggle room and more flexibility in case anything bad happens, ie what is the concern, is that the project eight section will go away and therefore they want to play it conservatively and by lowering the ratio to 1.20 which is high. and by lowering it, what it did was it allowed the developer, to use more of the income that they are getting for... >> i am sorry, i understand that. i was just wondering how you did it. i understand from the documents that they were able to leverage another mortgage on the property or something? >> yeah. >> i just wanted to clarify how you were able to do that. >> they were able to leverage a higher... a higher private debt loan. >> right. >> they were always going to leverage the private debt.

>> okay. >> by lowering the dcr, they are able to increase that amount. it was not an additional loan, it was more. >> i understand that. what was the loan? >> what do they increase in private debt per capitol to the project how do they do that? >> right. >> and you said, (inaudible) salazar and so by lowering that debt coverage, ratio, we were able to borrow an additional 600,000. >> from... >> from the first mortgage lender. >> okay. thank you. >> yeah. >> thank you, that is my question. okay. next question. so, can we just talk a little bit about the formerly homeless that will be or have some of the units set aside. and are you focusing on senior formally homeless, or is it just you are shaking your head and so that is a yes.

>> yes, they have to meet the program criteria. >> okay. >> so they have to be 62 or older. >> okay, great. >> and then, this goes to something that you just mentioned, i also am concerned about section 8, project, credit going away. and what are let me rephrase me question. what are the factors for how much we would get for residual receipts given that the project is covered by section eight. >> and you talked about the water fall and part of that is the receipts after the ground lease is paid and all of that. >> and so help me understand, i guess that my question is, given that the units are covered by section eight and the revenue to the property are rents, and that are paid. >> right. >> so, what is going to be less for residual receipts? i guess that is me milling it

through and not seeing a lot, given as the rents are covered by section eight and you have a section eight credit from the federal government and then 30 percent or whatever is left from the residents. and those are already sort of lower incomes for my question, and my question is, does the section 8 project credit, does that have a negative impact on what we get for residual receipts. >> i don't know if i am making any sense here. >> you actually are. >> and no, it does not actually have a negative impact and as a matter of fact, because, the project based section eight, at least right now, are, they are higher than we would want to get and what we would want to charge. and then, actually, it is actually cash flowing well. and so, there is cash flow or

surplus cash, residual receipts left at the end to pay back and actually goes toward first is the ground lease payment. >> right. >> so, yes, there is adequate funding. >> right. >> so everything, yes, i understand that. >> and then, i guess, i got to look through the loan agreements again. >> last thing. do we know who the third equity streets partners are? >> are they listed in the loan approval anywhere? >> are they somewhere? >> okay, go ahead. >> yes, we know who the third street equity partners are and that is the entity who we purchased the land from in 2010 and they will be the developer of lot 41. >> and the other people. >> and the people? >> yes. >> it is the developer holiday. >> okay, >> yeah. >> thank you. >> all right. >> other commissioners? questions. >> okay.

>> all right. thank you very much. so, unless there is other further questions or changes i am happy to entertain a motion on item. >> we are waiting for this project for a long time. and so all of you. >> and i think that... i just want to know who the people are, and can you understand that? >> okay. yeah. yeah. >> thank you. >> yeah. >> i move that. >> thank you very much. commissioners. is there a second? >> second. >> thank you very much. and madam secretary, call the roll. >> announce your vote when i call your name. >> ellington? >> aye. >> modejar. >> yes. >> singh. >> yes. >> rosales.