and however, the program now needs to raise the private funds to the leverage the public dollars that are being inputed into the program. >> okay. colleagues any questions? >> comments? >> all right. mr. rose, could we go to the budget analyst report please? >> mr. chairman and members of the committee, supervisors, on page 11 of our report, we note that the total funds for the veteran's equity center to provide the organizational capacity building and the counciling services are 165,000 and that includes 60,000 as the department stated was appropriate ated by the board of supervisors in the 13, 14, mlhcd budget and this request of 105,000 from the soma community fund. we note that on page 12 of our

report, that if we propose resolution authorizing the 105,000 of expenditures to the committee fund is approved in many fund balance will be 4 million 250,287 and we recommend that you approve this resolution. >> thank you. >> colleagues any questions. >> why don't we open it up to public comment? >> anybody from the public wish to comment on this item? please step forward. good morning, board of supervisors thank you for having us today and my name is joslyn and i am with the housing program. and the program coordinator and really, the program was established out of a community need and we saw that there was definitely the need to get accessibility to apply to affordable housing and especially with going through inclusionary housing program and just the length of

applications, and what bishop provided was first and more most a two prong approach, which was education and out reach. and accessibility to finding out about all of these affordable housing opportunities, as well as inclusionary housing opportunities. also, number two, it was really, there was really a need for case management to follow and help these individuals, seniors and families go through this process. as supervisor kim has said that if you have seen the inclusionary housing program and just how lengthy the process is, there is definitely this case management piece that is essential. and so we are here today to ask for your recommendation, and your support for the seniors is individuals and families to get this accessibility this type of service thank you for your type and we have a couple of our

clients to speak. >> my name is teresa and i am the case manager for the build for housing program and i have a client, her name is dalatu, and como and they are willing to speak. >> [ speaking in a foreign language ] >> these thanking the bill for the housing program and for person like her, to continue this program who are poor. so she is thankful that you

guys are supporting this program. >> yeah. >> this is alan. >> yes, i am alan and i give thanks to the housing for helping me to for the affordable housing and for i am disabled and i need the housing. okay, thank you. >> i am just to note that miss laho just recently got into the family housing. and so it just pretty much you know our work is really guiding them through the process because it is very complicated again, and even just clarifications on the questions that they have that sometimes, the housing developers themselves hard to explain it. so we kind of like you need to have that you know, education and information open to our

community, thank you very much. >> thank you. >> are there any other speakers that wish to comment on this item? >> okay, seeing none, public comment is closed. so colleagues we have this item in front of us. and a recommendation for the budget analyst to approve this item. could we have a motion to approve. >> and we can take that without objection, so moved. >> okay, could you go back to item four. >> item four isordinance appropriating $4,515,000 from the general fund reserve to the mayor's office of housing for fy 2013-2014 establishing the nonprofit rent stabilization program, and placing these funds on budget and finance committee reserve pending a report from the nonprofit displacement work group to the board of supervisors. >> okay, this item is sponsored by president chui and so do you want to take it away. >> colleagues i ask for your

support today for this general fund that will assist non-profits impacted by raising commercial rents in the mid market tax exclusion season, this will be funded by the property tax increases that the city will be receiving in the zone during this current budget cycle that is based on the budget growth in that area, and at our last meeting, supervisor avalos had suggested that we increase it by two million to address the needs of arts organizations and that is the suggestion that i am happy to support. following that, our offices have all met with the various arts organizations and the mayor's office of housing and community development to discuss how we could work together and we are in agreement that both the arts and social service organizations should undergo a parallel process, and present the recommendations to this committee together. today, i am making amendments to specifically allocate the

two million to the arts commission and the 2.515 million, to hcd but to make it clear that the entire funding will be placed on reserve as the budget analyst recommended and released after this committee holds a hearing on the recommendation ts of the various working groups, and i want to thank kim, avalos and mar for the work on this issue, and the co-sponsor ship of the supplemental and ask that the committee approve the recommendation of the supplemental today to move to a full vote at our board and i want to mention that we have brian chui and rebcca from the arts commission who can answer any questions that you may have been the working group. >> supervisor kim? >> thank you. >> and just want to appreciate working closely with president chui's office on this when our office first called for a non-profit displacement work group back in the fall, we had asked mayor's office of housing to lead a work group that met regularly, with some of our

non-profit leaders as well as the mayor's budget office to discuss the strategies on how we can help to support the non-profits that are unfortunately feeling squeezed out of the market particularly in the mid market and south of market and tenderloin, and it has seen the gate success which is great and certainly is increased our coffers and i appreciate that in how we can use some of the increments and the additional taxes that we have gotten since the revitalization that the market dedicated specifically to addressing non-profits who are displaced by the rent in the area, i know that brian is here to speak a little bit about what the work group is working on and now he and the group have an understanding that they have a budget of 2.5 million to work with to address the issues here and we have the arts commission director, tom decany here as well and we support

that the budget committee reserve and so we have an understanding of how these funds get spent, but i think that it is important for the group to have direction in terms of what they are able to do to support our non-profits and have an understanding of what the parameters that they have to work with are. and so, i thank president chui's office on this and ask the colleagues for your support. >> supervisor mar? >> i just want to thank kim and chui for bringing this forward and i am strongly supportive of the stabilization fund to support the non-profits and like to thank them for the report that shows the dwin delling down of the non-profits over the years and mr. chui talked about how the rising costs in the city and commercial rents is leading to

an exodus of the community based non-profits and supervisor avalos and many of the arts groups, especially small, community based organizations and community based groups that do work in the cultural equity realm as well. and i wanted to say that i do want to know, a little bit more about how the non-profit work group is progressing and if the report and recommendations will be done by april kind of on schedule, and also, had a question on how do we insure equitable distribution especially the arts funds and i know that the arts commission have a role with their significant ininvolvement in the cultural equity for the arts but those are some of the questions but i am supportive of this and i know that the details and the criteria will be worked out later as well. >> thank you to my colleagues. >> thanks.

>> avalos? >> i would like to thank them for bringing this forward and the budget analyst as well. the organizations that do support the arts and concerned about equity that we really need to be doing something as a city to insure that we can keep up our cultural heritage here in san francisco. with the raising cost effecting many, and so we actually met with arts organizations and tom from the arts commission, and kind of look at how we can address this issue and here to provide m outline for what we discussed and also want to thank amy chan and supervisor and president chui's office as well with her work that is bringing people together and also attend the meeting that we had in the office as well to

help to put together an outline. i am not sure what we have for order of presentations. mr. decany could come forward. >> sure. >> thank you, supervisors and thank you so much for your attention to this matter, we are hearing from a large number of our grantees and the arts and culture that the rising rents is impacting their ability to retain the lease these have or negotiate the decent terms in the new lease terms. and we have been working very closely with the non-profit displacement working group, myself and my staff member have been representing the arts perspective in the conversations to date and we also have brought in a couple of representatives from the arts and culture community into the working group. and there are many parallel to what the arts and culture organizations are facing in parallel to what other non-profit organizations in

children family services and others sectors are experiencing. and so, in working with brian chui as the chair of the group we see the parallels of implementing the strategy to the increase in commercial real estate and i have seen that there are three main areas that we are looking to implement the strategy around and one is very immediate, and the triage and the response to the organizations that are experiencing immediate, eviction, or not finding agreeable lease terms moving forward and so we will see a bucket of technical assistance services to help those non-profits both with legal and probono or redaysed rate and the real estate assistance in working with the partners at the office of economic and workforce development for space matching to understand where there might be vacant inventory and helping the non-profit organizations relocate in a timely fashion, we also see possible bridge grants that

could support the organizations in this interim period while they are looking for long term, or you know, three to seven year leases, if they were to move. so some sort of an immediate assistance to help those organizations and also looking at what the long term strategies could be to stabilize the non-profits for the long term and in researching the city's response in 1999 and 2000, you could pretty much replace the dates today. and so, we know, that the cycles of the economic cycles in the city are something that we need to be prepared for, for the long term and so i think that using the opportunity to begin to develop long term strategies, to sustain our arts and culture and non-profit organizations in the city, one model that has come forward as a strong model that has been successful with two central market acquisitions, is the community arts stabilization trust, otherwise known as cast, and that endeavor was seeded with a $5 million grant from

the rain-in foundation and the first five million was used to secure the 509 cultural center luggage store as well as the theater at 80 turk street. and that is a model that allows, and supports in the small and mid size arts organization who might not otherwise have had the capacity to acquire a property to secure a property of today's market rate and support that non-profit with technical assistance and capacity building over a period of 7 to 10 years, to be able to actually acquire ownership. and so in terms of cultural equity we see it as a model, and many don't have the capacity to jump right into a capitol acquisition, but this model will provide the technical assistance, and support and capacity building support, to help those small and mid size organizations deal with their real estate issues. and we also think that it is a great vehicle for the private

partnerships and both, brian chui and myself have met with a number of organization to see how these city resource kaos partner with the other private endeavor and i think that the trust model, being that it was seeded by the private foundation, could be an attractive mechanism by which the private foundations and other invest tores and sponsor ships and the like could pool to those resources so that the city investment could be sustained. and also, the positive aspect to that model is that the funds renew and once it is secured by a non-profit over that 7 to 10 year period and those funds come back up for the axis for another arts and culture, deed restricted use acquisition and so there is a renewal aspect to that model that will support us for the long term and if we had the future investments i think that we could build a trust in almost a secondary market for our arts and culture non-profit organization. >> supervisor mar? >> yeah, what was that cast,

what does that stand for again as a model? >> the community, arts, stabilization trust. >> thank you and i know that from the budget and legislative analyst report, they looked at or they surveyed a number of non-profit organizations and they said that 54 percent of those who responded would benefit from technical assistance. and they said that two-thirds or more were opened to potentially sharing space with other non-profits, and i am just curious, after the.com, boom, there is a tremendous exit of non-profit arts organizations i believe in our city, and what are you seeing out there with the community based arts groups now, and do you think that they would chair some of those same perspectives on sharing, and also, some of the other data that came from the budget analyst report. >> yes, i failed to mention that another aspect of the community arts stabilization trust is space sharing, and so, there is initial pilot and

central market of the space held by (inaudible) and where the trust has taken on the master lease for the loranne theater and for the or a number of other performing arts organizations who don't have an interest in ownership or nor do they have the capacity to do so. and by sharing that space, they can use it at a different cycles throughout the year and i think that it will be a really effective model and so the community arts stabilization trust will afford for space sharing and master lease projects as well for the organizations that might have the complimentary capacity and working with the working group we see the great potential for the arts and non-arts to also in those master leases to share the space and that is a great example for the luggage store where the hospitality house has a sublease in that property and so that i think we see a real great opportunity in the space sharing and master lease strategy as well.

>> okay. colleagues any other questions? >> okay. why don't we bring up brian chui is here. >> brian chui the director of community development and i think that the director did a great job of outlining the different options that we see for the usage of the 4.515 million dollars of funding that will come through the supplemental, and a few items that i will add in regards to the timing, we are now in the process of finalizing city department feedback on the first draft of the report and we anticipate discussing, the draft, at next friday the 21st, and which is the final meeting of the non-profit displacement working group. and we will be getting feedback from all of the city departments and all of the community partners at that meeting. and we will incorporate

whatever final feedback we have into the final report, and we hope to be able to present that to this committee on april 9th depending on what it will be at that point and we hope that the report will describe the program in sufficient detail for the committee to feel comfortable to release the moneys off of reserve, and we realize that we want to get these dollars out into the community. as soon as possible. because we really need to, even as the report has moved on, there have been a number of groups that have lost their lease even during this planning process but we really want to speed it up. and a couple of other points that i wanted to make was that i found that in this process, there have been a number of partnership opportunities that i think that the city has had not public explored in detail and i think that, you know, for our office, honestly we have not worked as closely, with our

arts colleagues, and i think that it was a great opportunity for us to see the amount of synergy that exists between the organizations and arts organizations and that was one great thing and another thing that was unique about this effort was that usually when we talk about non-profits we are focusing on those departments that primarily fund the aspect of the non-profits, department of public health and we worked closely with the office of economic development and the office of community development and infrainstruct stur and the planning commission and the controller's office and the department of real estate and i think that those departments while we don't always connect them with non-profits play an especially important role when we talk about the non-permanent affordable housing, and in a sense that is what it is. but, in a non-profit setting, so i think that those relationships will work well as we move forward and so we look for toward to issuing that report and presenting that to

you in the beginning of april. >> thank you mr. chui any further questions? >> okay, why don't we move nr rose to your budget analyst report please? >> mr. chairman and members of the committee and supervisors i would just note on page six of the report that if this supplemental is approved the general fund reserve will have a remaining balance of $40 million 980,143 dollars and the committee and the supervisor board have discussed our recommendation which is to reserve the requested 4.5 million and we consider the legislation to be a part policy legislation for the board. >> any questions for the budget analyst? >> at this point in time we will move to the public comment, is there anybody in the public that wishes to comment on item four, step forward, if there are more people, line up and everyone is going to have two minutes.

>> thank you there chairman and supervisors. for the opportunity to comment on this important appropriation to help to stabilize rents for non-profit organizations in our city, my name is dan teri and i serve as the chairman of the board of the arts ban and by day i am a technology entrepreneur and co-founder of ticket fly and an event ticketing provider that employs over 80 people in the city of san francisco. it is one of san francisco's oldest art not for profit and was founded by a group of artists in the 70s, our most notable program is then annual event in october that gathers together over 800 sf artists, and over 50,000 art enthusiasts across the city. it is city wide. and we make it a daily experience for all of the citizens of the city.

because art is enjoyed in person, we acquire access to the spaces. rents are increasing and this is threatened the well springs of our city, things like creative risk taking, free speech, spefl expression, and in many reports these are the things that the world looks to san francisco to be the leader in. for art span's part, we would like to communicate to this committee, and to all of the city agencies, tom, it is always good to see you perform and we thank you for representing our interest all of the time and so we would like to send a message to all of these agencies. and that influence the public's access to the visual arts that arts span stands ready to mobilize our artists and our patrons, to preserve the public's access to the visual arts and to make sure that the visual arts, remain a part of our daily experience.

>> i am excited to announce that the board is near the completing of a process that will expand the organization's mission and our goals over the next three years. for example, we are... >> sir. >> thank you very much. is there anything else. we have two minutes per speaker. >> just want to make sure that we wrapped it up. >> okay. >> we look forward to sharing our plan with this committee and relevant agencies to continue to support the public access to arts. >> thanks. >> next speaker. >> good morning supervisors. thomas ticerelo district five resident and as i expressed last week in public comment i would have preferred to have seen the report by the work group. and prior to you funding four and a half million dollars. it makes a lot more sense to

see what the suggestion are before you diminish the fund reserve. there was a comment about this will be funded by the property taxes but it is my understanding that this is an appropriation none of the rainy day reserve. and which will now be down to 40 million dollars. and so, it would be hard to whether or not this is a good appropriation before one could acertain where it would go, it would begin the rent subsidy and if you subsidize the non-profits for rent you may be discouraging non-profits from merging and sharing space, you may be doing just the opposite of what you propose you are intending to do, thank you. >> thank you very much. >> next speaker.

>> good morning, supervisors i am nancy neilson and we are one of the agencis that are being displaced we are fortunate with the support from former supervisor to find a real estate agent who worked with us and negotiated one of those low, low market rent rates for a long term, but along with it comes the need for considerable amount of improvements and work to the building which has been not tended to for a very long time in the heart of the tender loin and we are excited of being there, but like every other non-profit along with doing our program work and serving over 2500 clients, we are also trying and we have been dealing with an architect and finding a contractor and dealing with the building department and we need the partnership of this board and off this fund and we really appreciate the time and effort and we encourage you to support this piece of legislation. thank you. >> thank you very much. >> are there any other members of the public that wish to comment on this item?

>> okay. seeing none, public comment is closed. >> president chui. >> thank you and we appreciate your consideration and i would ask the committee first to make the technical amendments that i mentioned before and to move this out of committee with full recommendation, i want to thank you for your consideration and thank my aid for working with all of the various city districts and supervisor kim's office and look for toward to hearing the recommendations of the various working groups and really understanding how we will stabilize our non-profits in that area. i will let the motion go first. >> okay. >> >> i will move the amendments and also the budget analyst to replace the general funds on the budget and finance committee reserve and also

pending the issue until the april 2014 report. so with have those amendments could we take those without objection? >> so moved. >> i appreciate working with president chui and also april who attends this non-profit displacement work group. and looking forward to the report in april, understanding that dollars is one of the solutions that is going to help us all for the situation that we are seeing, either in the tenant improvements such for the situation that is described by the lutheran services is what we hear from the non-profits that we find the below market rates and the rent in the city is often in our buildings that need the most tenant improvements and that is why the rent is so, low, or with the rent stabilization, building acquisition as was done by cast and that came out

of the.com boom and we are able to reep the benefit of that in the next.com boom and even if it is a long term investment and we are seeing the fruition of that today and finally of course, i appreciate mr. chui bringing up that this is a collaboration among multiple departments and dollars is one source and we are also interested in working with planning and dbi to see what other solutions that we can provide through the city, whether it is for example, figuring out, ways to get the non-profits exempted in certain areas where they can't go, but would be below market rent thank you to the committee members for working with the arts non-profits on this