with low income we're down to building moderate housing. the division of moderate is a little bit different but work with housing is the most difficult type of housing to financed because there's not as many tools at the city and local government level. we have the opportunity to get investment to the tier that's in between moderate and what we call market rate. i challenge everyone to think about it if you haven't already and present it to the commissioners.

commissioner >> i was interested in the partnership with the nonprofit based developer can someone comment from the staff comment open that option why is it not on the table. should not be on the table? >> good afternoon sally deputy director. yes. that was one of the alternative options in front of of us. one end of the spectrum would be a traditionally affordable housing project serving the low income like we do with your standard this is developed and used tax credits with the low income tier.

we looked at how to serve the moderate income folks and the tax credits are not a feasible tool. those are the two ends of the spectrum and the financing tool and then but we had the moderate protect intent of the organization pa and how do you make that work and you make that work internally within the project. so this part of our analysis yes, but as you saw from our presentation we're recommending the moderate approach for the income tier approach >> is that a way to say the staff concluded the partnership with the community based developer was not feasible under the circumstances? >> no to echo the directors

feels we do as we do our affordable homes it's partnering with a developer to serve it's a different financing structure. >> i understand thank you. commissioner ellington. >> with the i'm just exploring the different options in my head when i think about the low affordable housing and the physical constraints with the space can you talk about specifically if you were to build avon this site would it be comparable to other market rate units or projects that are in omission bay. >> are you asking if we built

one hundred affordable projects. >> right. >> they're a high standard and consistent with the project in mission bay there's a number of forcible mission bay projects that are at market rate but no significant clrgsz that are expected to be on par. >> thank you i'm going to reframe that question and get back with you. >> thank you very much any other questions. >> i have a followup question on the rent. the rentals rates for the units for the moderate level units. i wrote them down fast but i understand $2,400 >> i'm sorry could you repeat numbers please.

so based on 2013 numbers the affordable would range from 24 hundred to 3 thousand from a one to 3 bedroom and for the market rate for the other units is 3 thousand to 4 thousand 2 hundred. >> and the rate you get to you work backwards and you look at thirty percent of that gross income and that gets you to how much the monthly rent b will be it's in the 24 hundred flat they'll be upgrading it periodically. >> yes. that's correct and those are the assumptions that are tied to - >> sorry want to clarify those are for one using a family of 4

and they change smaller will households have smaller income but. >> the table goes from one hundred 10 down. so they circulate based on that you'll have 4 people in the - >> it make sense from a rationale standpoint. >> that's why people ask that. >> yes commissioner mondejar. >> i think ms. reilly can you address the decision your rem this can you explain or address what mr. cowen has raised the

change from homeownership to reverend or rentals. >> i'll do a quick overview and invite up tim. so ownership and rentals are two markets. one is a difficult site for ownership because it's restrained it's competing with other buildings that are not up against the freeway and have more amenities. also the cost to own there's a 50 percent different between cost to own and it's cheaper to rent so there's more of a subsidy and the larger cost difference so if you are looking at having the numbers of the

units to subsidize and the moderate rates there are other public subsidies available to the market rental rates for the affordable units and with the sales prices to get the level of subsidies from those market rates to subsidize those for sale units with the disconnect with the cost of ownership versus the cost of renting you can't get the same number of the units it didn't pencil out but i'm going to invite tim up to elaborate or correct any figures >> there's basically several factors. number one we're impacted by freeway so when you think about

condo sale prices you have to look at the other comparables and when you do the math looking at 235 and berry and other mission bay north and south housing given the packet it's a different figure. youy r require 15 to 16 sale prices to get to the feasibility number. we have run, you know, the run-up in pricing and when he do that the world innovation and the affluence in the city is the entire backdrop has led to price increase so the calendar year

prices are backed in and we'll require a further 20 percent for the units in this projecting program because of the high-rises. the gap is acquit large and it's historically an unprecedented number not on the impanel up and over a million dollars next to the freeway. any other questions >> thank you. i'd like commissioner mondejar i want to address a comment of one of your other comments that mr. cowen said the 8 hundred and 20 percent a m i that gets back to we're having policy discussions what is the scenario that's peripheral. let's say there recent a rare of

a family of two working adults and two minors who are dependents that's two people making between 65 and $59,000 a year together. it's a policy decision that's a level of which we should be encouraging or in policy or in ways of building homeownership or rentals. my personal feeling this project represents a good opportunity for a middle income family to stay in san francisco to raise their family and rent. i don't want to citywide homeownership is the goal but for this project this presents a rare opportunity to allow

middle-income families to live and raise their families in san francisco. i wanted to get to that. i'm sorry, i interrupted you. commissioner >> can you talk about project manager about the other low income opportunity in other parts of mission bay. >> sure actually madam secretary could you go to the overhead. this is our last affordable housing site. in the south we're going to draft one hundred and 8 agency sponsored units and those are on sites we have one hundred 50

under construction on block 63 and the next item for an additional 2 hundred units and we'll then across fourth street will be an additional entire block of affordable housing between the two is 3 hundred and 50 i can do the math 8 hundred and less something on other sites that includes block 6 and in the next few months we'll have the partner on broadway board and 3 east and 9 a and b about e will be our great waterfront views. those are affordable housing and also block one in front of you back in may that one would have the 53 inclusionary units if

they going for rental. >> just a point of clarification ms. reilly the balance of the projects they're up to 50 percent a m i all the way from spofd no no objection too on the partnership we have with dph up to 50 percent a m i. >> we can get one hundred and 10 but because we don't have the financing it goes to one hundred and 10 but typically up to 60 percent because theirs notes o no other funding. >> so for this particular project we're filling a specific need for the moderate income housing. >> yes. this will be the only location because all of our

projects require significant subsidies with the dissolution we have no other access so if we can't take advantage of the bond financing that's 60 percent less there's no other funding sources to help fill the significant gaps you into going get into with the moderate rate. >> thank you. i'm supportive of the moderate income affordable housing. narng some the rentals. my concern is perhaps are the

marketing of those units. i for one know plenty of folk in the city who would love to rent and those who are native san franciscans living in other part of the bay area. many of them are latinos. latino professionals would be happy to rent in the city but are unaware there's any affordable housing they equate that with the very low income eligibility and they've been told they go quality for some opportunities interest i'm interested in how the marketing of those units it going to take place is this known >> all the details of the

marketing will occur aren't known now but there are guidelines inside the o pa we'll follow that speaks to beyond the certificate holders and there advisements in various papers and the population your addressing via those outlets they talk about 15 b.c. being the maximum number determined but we're hoping to working with community groups and working within agencies of cdc to make sure we're addressing the full population we're getting the word out and going above and beyond what's required of the organization pa. the details we'll have to work through but it's our intention to make sure we address our concerns. thank you

>> it's a larger question turning out to the certify holders how they do their lotterys and . >> right we'll have the meeting with o m h next meeting. >> okay. are there any other questions or comments. commissioner mondejar >> i want to go back to policy are we moving towards more rentals instead of encouraging homeownership. >> no. >> do we have a is anness. i want you to expand more. >> sure. sure sure. i think there's room for the developer and staff to come up. in terms of the policy questions

i was talking about income levels. the rental versus for sale does sort of come down to the numbers because the proceeds of for sale from the rental income is what supports the property and because of the market dynamics it's not interchangeable. you don't get the same money. that's a pro forma a question. i was trying to make it not been homeownership bus it's the opportunity that's present in this lot. the questions are more about the income level that's supportive does that ammunition. i'd love to have the developer come up and talk about this but

i don't - it's not a decision we can make today because it's about performances and whether or not the project is feasible. to this project not today >> i know we're not talking about this project now but the bigger picture. >> that's a bigger question because where we are as being the successor agency and what's the process. we'll have more tint when we talk abo talk about hunter point >> the city manager mentioned that. >> through the chair to provide some context for the discussion commissioner mondejar i and the

commissioner mondejar were having the owner participation agreement the moderate as defined went up to one 10 and that's agnostic whether rental or so far sale. so along king street very have various names avalon bay has two advertisements and avalon bay provided for moderate units that excited today and some that excited at the lower tier. in the beacon that has the bowling alley and the bottom floor of hundred units that two started some at low and some at the moderate income levels and a

register project and over time it became a for sale project. there was a conversion and an first amendment to the o pa were they were up to one hundred and 10 percent so the requirement of mission bay moderate whether or not rental or homeownership it was a production. and as it worked occult as staff described and for financing purchases the master developer and other developers were allowed to agree gate for the particular very low so you saw in the chartings why is it at the cdc units it's low income units it's atkins an agency gas station of the low and through

the years the neiman or 16 years there's a opportunity it didn't work as a for sale site >> at the questions or comments on those scenarios. i'd like to call for a motion then on this item if there's noting no other comments or questions >> i make a motion. >> thank you very much is there a second and a second. >> thank you very much. >> please call the roll. >> commissioner ellington. commissioner mondejar. commissioner singh is absent. commissioner rosales oar commissioner johnson. there's 4 i's and one a bit.

the - >> and continental approving a combined basic skeptic design for retail project on block 7 west on mission bay south and in amendments to the blocks 11 and 12 major faces pursuant to the agreement with the b lc and the project will carry the resolution and action madam director. >> thank you, commissioners that is another mission bay item you've taken a series of steps over the last 6 months block 7 west which is being prepared to be developed by the chinatown community corporation and what you have before you is the specific design with that, i'd

like to ask katherine reilly project manager to present this. >> you want to hold it (laughter). >> that's very nice just don't drop that. (laughter). >> turns out those things are not cheap. go ahead and hold it >> good afternoon again. thank you director and good morning. i'm katherine. this last item is a combined

plan for affordable rentals. you've reviewed this back in december and june of last year. after i give a brief overview the developer will present the promise. so this project will be developed with chinatown development corpses. it's located on block 7 west which is a 1.8 acre parcel and you bound by mission bay north to the south. and fourth street to the west and it pedestrian views or walkway on the east that divides the parcel which you've heard about in the past. it includes units above ground

retail and this is increased to one hundred. there will be a one hundred and 6 bicycle parking spaces. this is 3 hundred more spaces than the parking requirements. there will be open space areas. the project is very centralizing located for transit and spop spop. you'll have a stop flovr in front of the building and a 5 minute walk to a cal train and they'll be able to take advantage of the bart shuttle. when the project is open the new children's park will be half a

block away and will be up and running when the project opens it t it's doors. i want to invite kevin heel review the design with you. >> good afternoon, commissioners. chair johnson and director. i've kevin from david barker architect. i wanted to introduce a few people in the audience. we have a couple of folks from our officer we have our architects and engineers so everybody has turned pr as you know block 7 that's the team up

there. they've obviously - it works now. beautiful. block 7 is bounded by 4 and third street and mission bay boulevard. this first image is an aerial view from the northeast that shows the model that you saw and you've looked at it as we've passed it around. i wanted to point out the building is a lot of the buildings that's arranged around a larger central court yard. this is a view from the southwest looking at the building between the future family house this will be a landscape view of mid block

passage. i have a few diagrams this one she's how transit rich this site is. you'll see the third street and mission shuttle and the diagram shows the stocks and the 22 is going to be relocated and it's turn around will be in front of our building. we're about a 5 minute block from trans station. it's a good access to get around the neighborhood and down to the peninsula. the next diagram shows the bicycle lanes in front of the building. 5 and 10 minute block you can access the new bike share program and bicycle to