meeting on february 18th at 1 o'clock p.m. and announcement of the electronic devices pr please be advised that the pages and other electronic devices are prohibited at this meeting and you may be asked to leave the

meeting for electronic devices. and c the announcement for loomentd of the public to comment they can make up to 3 minutes unless the commission says otherwise. it's strongly recognized that the people fill out a speaker card and submit it to the commission secretary. the next order which business is the report of elections taken at the previous closed session meeting marry madam chair >> thank you very much. we don't have any reportable actions i don't think. yes. okay. sorry. that was confusing. at our previous closed session we discussed the issue of the

commission appointing a general council. the commission decided to appoint mr. jim more and more relays for the executive director for the direction for a permanent planning session for a general council >> the next business will be matters of unfinished business we have none and next did tell me 5 for comment and regular agenda. item 5 a. approval of minutes special meeting of january 7, 2014, >> everybody should have received a copy of the minutes. any public cards >> mr. washington. >> yes. now will be more

appropriate time than any so you'll know my position. is that none of you personally but at you directly because you represent the mayor which is over the whole city and county everyone including us african-american black negroes. as it relates to your minutes january 7th in which you had your meeting at the hunters view i pleaded that you come out to the community specifically the western addition but happen you came out to the bayview and i hate to say it it looks like we're following the pattern of the old regime. the broken promises this wait, wait, wait. well ladies and gentlemen i'm going to a imprudent present to

you the redbook. i'm sick and tired and having enough i'll be 50 years old this month i spent half of my daylight life i have 3 generations. i have a moral obligation and i'm going to use every opportunity on the government channel. i was quite responsible for the government channel doing the tape. so let me go on i have a minute and a half. i'm appalled not at you ail but appalled at city hall how they've neglected and how conspires has been involved in the last 50 or so years dealing with an agency but it's the same old game controlled by city hall

and now you're responsible to the state. i am going to show you i've been to the state. back in 2008, at the first redevelopment agency has done damage to my people. that's a continuance of what we have shared here in this california here in san francisco in the history of african-americans being here. i'm appalled as a great, great grandfather to tell my grandkids nothing can be done but how about us other than the airlgz and others. what's the phrase i can't think of the phrase but you talk about

we're still last. i'm here today and it will be my campaign thought this month i'm going to the state and i'll be filing against this agency trust me. thank you very much are there any other speaker cards >> i have a none. >> are there any comments or changes requesting for the minutes commissioner ellington. i have a question on the minutes the second to the last prairie want to make sure this statement is correct it says that mr. bridges is responding to a question of m g e of the local businesses and it represented $4 million but you - i'm not

sure that's a correct number so we don't. i'm raising it, it's off >> through the chair it looks like a typo we'll verify the exact dollar amount. >> okay questions or comments. if there are none i'd like to entertain a minutes approval on the jab 7. so moved >> thank you very much a second? is there a second? okay. okay. you can still second it then we'll take a vote. who knows >> okay. i'll second. >> thank you very much. madam clerk, please call the roll. >> >> commissioner members

commissioner ellington is absent. commissioner mondejar >> i abstain. >> commissioner singh. >> yes. >> commissioner rosales. >> yes. >> chairperson johnson. >> i. madam chair the vote is 3ize and one abstinence. thank you very much call the next item >> the next order of business is regular agenda 5 b workshop on a memoranda of the mayor's office housing for the implementation of the retained housing discussion. madam chair. excuse me. madam director >> good afternoon, commissioners and members of the public. commissioners you know you have exorbitantly obligations in the project areas and for did you affordable housing obligations the with respect housing

obligation. this workshop is a precursor to our budget and really confirms an existing practice through budgets you've approved and the working relationship with the mayor's office of housing and the housing community development ass and is successor that will take our assets and obligations. not that i recall the board of supervisors asked the commission to and oc i staff to collaborate with the housing obligations so once we've taken our public comment we'll certainly file a written report to the board of supervisors how that collaboration is working.

with that, i'd like to ask sally to present >> good afternoon commissioner. i take it my pleasure to present the workshop with the mayor's office housing and community development. the retained you housing obligations. so your agenda important the workshop is first of all, i'll go over some background on the various steps posted solution that led us here. i'll visit the key principles that shape our efforts to create affordable housing in san francisco and specifically through this mo u. i'll give an overview of the funding we have in place so we understand the projects that will be implemented. i'll go over the mo u structure itself and that will lead to the discussion of the various roles and responsibilities of each

party. i have some preliminary budget estimates that we'll continue to refine. i'll be asking the key management staff to introduce themselves and give a brief overview in relation to the mo u. so with the background again, we're all familiar with february 2014 was the rotation of the agency that was through the bill of a b 26. at the time the city was the successor agency and the city took a function and designated the mayor's office of housing development as the successor agency that was done through the board of supervisors 11 dash 12. in june of that year there was a

clean bill as 1484 and when it take effect the agencies are separate allocations and the separate agencies may have separate obligations. and so the city took steps to implement a b 1484 through the successor ordinances 215 dash 12 that created this commission. it also staibd establishes an demolition that is oc ii was retaining and those relate to the major improvement projects like the bayview and transbay and our replacement obligation is for the destruction of over 6

seven hundred unit and your arrangement to replace those. it included a requirement that oc ii and the mayor's office work together to lay out how the two parties will relate to each other and our responsibilities in implementing those retaining housing obligations. in november of that year the state took some action that illuminated the responsibilities. and we turned in our low moderate view that november and in october of that year the state can be and they invaleted the low and moderate income and dwrikd those to be returned to the successor agency and they determined the successor agency need to pay over $110 million to

the state. not that i recall we went there an exhaust process that include did audit of our restricted fund a that process concluded with the state determining only $10 million needed to be paid through the d dr process and that was again $10 million out of leveling million dollars. and then through that we got our finding of perplex. we then embarked on our long-term project and we did a confirms of housing assets that transferred. while all of this was clarifying the agency we did want to clarify with the state that a certain large number of assets did transfer to the city of

housing assessor so we did the confirmation action. we've been working with the staff quite a long time and we're pleased to be here to take over the mo u and i'd like to decide the process. you know, in san francisco there are a number of guiding lights, if you will, that help us determine the how the when and the why the concern projects and policies should be done and go into effect and on the citywide basis we have the consolidated plan that has the housing golden's and requirements. for occ i we have our redevelopment plan the actual

contracts we acted open to provide the affordable housing and the income levels. all that being said that helped to create a path for what we want to make sure each party is responsible for and we keep in mind those as we develop new projects. your retained projects in hunters point shipyard and our replacement obligations. we as the successors agency retaining those obligations we believe those are just as important as other obligations in our contract so we wanted to lay utility i anti what are the principles. so first of all, the assumption is in general the occ i and our contract and workforce policies apply but on the other hand, we

want to recognize our past and current practice of under writing we've shared a practice of guidelines and agencies and used the mar office of housing so this codifies our past practice and where our current practice we attached to the draft. we're defining that our promotions are you ours until their completed and completed to us means it constructed but occupied by that target population and the other key privilege is recognizing the mayor's office housing of development has capacity that can help us and assist us in implementing our large obligations.

there's a large part that talks about how to light those services but separate from that oc d has their own role to play as the housing successor. our plan as we complete projects we'll transfer them to the housing successor so we need to cod so it's a smooth transaction. we'll make sure we have a partnership throughout the project. in your paths you received a large spreadsheet that has a summer. i've caught the errors and i've tried to provide you with that. overall it gives us a flavor for

the large number of the projects and our project areas. and we have nearly 4 thousand you units that on active pipeline. the majority are affordable. you'll notice there's a difference between the affordable units there are manager units that may not be income restricted but over 4 thousand units by 19 projects. and in the active pipeline there are over 18 hundred units we're working on. this is an updated number from the spreadsheet but that's about $280 million on the occ ii. some of the money is in the prongs. that's total funding and many of those projects have been on the pipeline for awhile. we have a ways to go.

we have what we call the fire chief pipeline we've not actively been working on primarily the shipyard and some in mission bay and transbay that's in the future number. in addition to those projects we're directly funding we have a matter agreement such as the hunters point shipyard the d da has requirements for the market rate housing and a few projects that are finishing up so that's on the inclusionary pipeline spreadsheet and it's on the 16 projects over a thousand units that collected thouns units and one thousand to go in phase two of candle stick point. so funding you'll hear more

about that in the next presentation but again, i circulated that it was about $280 million in total funds concluding funds we've provided that leaves about 2 hundred and 20 million of that is fund we have to put in. we have several strategies to provide the funding some say current balances or payments we've accepted to received in the near future and various strategies to assess a bond precedes. so sort of help eliminate this i've done a preliminary balance to certain project which i'll show you in a minute and talk about tax exempt precedes that need to be treated differently.

in the analysis we're still going through a lot of this, you know, will be 237b8d finalized through the process and we'll be back with more information. we have about $870 million and they're a combination of expiating bond precedes and tax increment we're allowed to keep through the d dr process and we collected others through prior projects and now good we're going to spend the fund through number one tax increments and such. so you'll see that the first category of admin projects that includes everything that has no one been programmed but i highlighted this to say this is

sort of my catch all bucket with missouri to get some deeper research so we'll have this looked at better. it's also sort of a changing landscape. and then ass list griffith phases one through 4 we have the funding in hand to cover the phases 4 through 4 and it's a great feeling and mission bay southwest we anticipate coming before you this fiscal year or next mission bay south again, the things with the double asterisk this is the beginning of the funding that i'm using this balance we'll be requesting future fund we hope to have an rfp on that.

project of we anticipate coming to you with a construction loan and the section 7 will be with section 6 and the rfp process for 8 is underway and that's again reflected the balance. we actually have a small amount of pdf we've collected we may not have a use for in this period so we'll apply that to the next request so you don't sits on the balance necessarily. ii mentioned we have some bonds that need to be treated differently like $8 million from the previous bond recipients they're quite challenging to use in the finance world balls their

tax exempt they have to be in the form of a grant and not a loan. grants can be tricky when you're using protecting tax credits you can't leverage our tax credits on a grant and specific tasks you have to pass for the private benefit test. there are challenges within tax exempt that's why our housing program, you know, in the last eight or nine years a has been heaving focused on this. so the other reason why we hadn't moved in programming those yet is pursuant to the law we need to finalize the completion before the expose bond precedes. through the budget process we'll come back in the spring and have

a proposal for eligible used to identify some potential uses and programs for the funds so we can spend those on affordable housing. so that concludes my portion on the pipeline and budget. so, now i'll talk about the roles and responsibilities in the mo u. i want to go over what it takes to complete a housing obligation or housing project. i know first of all, tailors the overall project management that can include all those selecting the developer and providing predevelopment funding and providing construction funding and providing ground leases or others action as well as the compliance work throughout the project. and there's fiscal management

piece and financial closings with all the lenders together he to complete the traction. once it's in construction it needs to be insured that the plan is built to specifications and once it's built we talked about monitoring the lease of the sales and a applying little preferences program and we need to get to closing that project and transferring it to the successor. this is what it takes to complete a housing obligation for the ones in the orange asterisk is we light those. so the mo u we'll light their staffing in the fiscal management their assist ass us as needed.

there are construction mrths managers who can monitor our project and the team what monitor and help with the looergz and marketing and again helping with other uses. i want to show side to side our role as the lead in project management we have a role there are funds in our accountants but the day by day process of construction loans the housing development will be doing we'll be utilizing some of the staffing. missouri has construction folks we don't so we'll light their construction managers.

and together we'll have the transfer to mow. and then in the transfer there's a little bit of work in your memo we're going to come up with a certificate of perplex but most importantly we have to make sure everyone is on the same package nothing symshould be a surprise at the end of the day. so through the mo u we've created a pathway for mow to perform and participate through the loan under writing and have an opportunity to apply. those green asterisk will be for the mow housing successor and he

then we'll do the transfer. the mo u has some additional terms and one was confirming the tax revenue bonds. that's not really in our purview anymore so we used to be the issuer of the bonds but mow is the past manager of the 9 percent tax credibility and san francisco is very lucky as a city of i city and county we have our own tax credits and we've historically coordinated and mow spreadsheets. reporting is key for both the commission and a public and others stakeholders to understand you know how are we meeting our enforceable