success initiative. it's a one-time grant which is why it appears in the first year and is not budgeted in the second year. we also have an additional $150,000 committed by partnership of foundations led by the haase foundation for $150,000 to be matched by $150,000 of general fund. >> great, thank you. >> item number 5 is an ordinance amending the administrative code to eliminate the mayor's office of housing and community development escrow account administration fee. item number 10, resolution approving a waiver of the payment in lieu of taxes for fiscal years 2014-2015 and 2015-2016 from the housing authority of the city and county of san francisco. ~ from the housing authority. >> thank you. >> hi, mr. lee. >> good morning, supervisors. olson lee, mayor's office of housing community development. ~ director of [speaker not understood]. [speaker not understood] and to

work with low-income communities to support them. our housing budget reflects sort of the change that the mayor discussed in terms of increasing the amount of affordable housing funding through the use of the bonding the housing trust fund. it grows substantially from this current fiscal year to the next, an increase of nearly $34 million to allow this office to initiate request for proposals for affordable housing throughout the city. in the subsequent years there is relatively stable. the shortfall is primarily related to one-time sources of revenue in the 14-15 budget overall.

the voters approved the housing trust fund which provides the mayor's office of housing and community development approximately $1.5 billion over the next 30 years. in the initial allocation of the housing trust fund, that allocation was with $20 million which increases he by $2.8 million annually until it reaches about approximately 50.8 million dollars in 2024 ~. at that point the allocation rises up and down with the increase or decrease in the general fund. the mayor proposed as part of this budget so that we can do more affordable housing to borrow against this future allocation of the housing trust fund. so, an additional $25 million will go -- is being proposed to go into the capital budget both in 14-15 as well as in 15-16. and these funds will be

basically repaid over the remaining life of the housing trust fund. we will work with the office of finance to secure the best possible rate for that particular financing. in terms of the housing trust fund, some of the key accomplishments. we started the down payment assistance program for the first responders. we've doubled the down payment assistance amount for eligible households. we've provided over a million dollars in foreclosure counseling and eviction prevention. we're currently working with stakeholders to develop a small size acquisition program with anticipated roll out of that program in july of this year. we have just completed the hiring for our complete neighborhoods infrastructure staff person and we anticipate that that program will be developed in a collaborative way as we have developed the

small side program, and that program will be up and running in this fiscal year. and lastly but not least, we've committed $13.8 million to affordable housing developments to the 55 laguna project as well as. the former hugo hotel site. in terms of our -- the other activities of the office, we're clearly working on creating and improving the housing pipeline and the funding authorized in this particular budget clearly would allow us to go forward and issue the request for qualification of proposals for up to four new sites. this is something that the office hasn't done for quite -- for the past two years. in part because we depth have the funds to sort of back up the request for proposals ~. we are also working

significantly with the housing authority and a sitting in repositioning the public housing stock through the rental assistance demonstration program. we are also implementing the ellis act housing preference program as well as continuing to administer the local offering support program for our supportive projects. ~ los in terms of our community development budget, the majority of the if you ~ funding for that is provided by the federal entitlements, $15 million. approximately 3.6 is provided from the general fund and will be allocated or pro proposed to be provided from the general fund and will be allocated between fiscal years 14-15 and 15-16 ~. and that concludes my presentation. my staff is here and we are

here and able to answer any of your questions. thank you. >> supervisor wiener? >> thank you, mr. chairman. thank you, [speaker not understood], for your presentation and for the work that your agency does. [speaker not understood]. we know that we need more affordable housing. and even though we have different debates some time about levels of affordability -- i don't want to get into that today because we need all of them, from very low to low to moderate. they're all critically important. i know that you agree with that statement. but my question is how is the agency going to accelerate the production and delivery of actual affordable units onto the market that people are actually living in? i know it's been a frustration for many in the community and in this building and i'm sure for you that we are investing a lot. we passed the housing trust

fund almost three years ago. we've had many years of redevelopment. a lot of market rate development going on in the city, it's great that the mayor's budget accelerates our ability to tap into the housing trust funds. how is mo going to -- mayor's office of housing going to accelerate the production of affordable housing in san francisco? ~ moh >> this proposed budget is consistent with the mayor's goal of producing 10,000 units of affordable housing over the next six years. so, this is clearly critical to the first steps. now this is a two-year period, but clearly we will be coming back to this board in the future for additional funds for future investments in affordable housing development. so, specifically, in terms of this budget, we are currently

jump starting four developments that will be initiated and hopefully completed during the next six years. we have also in this process, we spent a lot of time over the last couple years sorting out, one, getting the housing trust fund, creating those programs and initiating those programs. among those programs that we are initiating, we're very, very close to starting a business -- small sites acquisition program and that hopefully will result in a number of small sites being acquired and rehabbed in a very short period of time relative to construction of new affordable housing and preserving at-risk affordable housing. the other piece of this is really the rental assistance demonstration where, as the supervisors know, this office has worked probably about a

year and a half with the housing authority about how we can reposition a portion of this -- of their stock. and as we are building new affordable housing through rfp, we really need to preserve existing affordable housing that is at risk because it's just not being maintained as well. so, those are 3500 units that will be basically rehabbed in the next four years. for our office, it's a tremendous leap in terms of the amount of production per year during this next four-year period, and part of how we are attempting to do that is the request for those temporary employees as we are going to focus primarily on the rental assistance demonstration program. i'm sorry. >> in addition, i think through this process we've worked closely with the office of community investment and

infrastructure ~ and their pipeline has now been clarified in terms of what resources they have and how they're going to utilize it to meet the city's overall affordable housing goals. >> i'm sorry. over the next four years how many new affordable units are going to come on line each year? >> so, the estimate is 800 new construction units and approximately the 3500 rehabilitated units from the housing authority.

>> per year? >> for four years. per year for four years? >> no, over the four-year period. so, the total would be 5300. so, a little over a thousand units, a little over 1200 units, 1250 units per year for four years. >> so, in terms of the new units, obviously i'm 1,000% supportive of maintaining the housing units [speaker not understood]. you said the next year 3500 units? >> [speaker not understood]. [multiple voices] >> set that to the side for a moment because even though it's critically important it's not new housing. in term of new affordable housing, are you saying delivering 800 units over four years? >> that's correct. in addition to those units, part of our housing production is with the market rate developer, it says they do inclusionary units and [speaker not understood] units so that 800 number doesn't include

their contribution to, to the affordable housing production. >> does that include the 800 number include seri units? >> it's an a ~ additional 1600 more units [speaker not understood]. >> so, between the former redevelopment area and mayor's non-redevelopment, for lack of a better term -- [laughter] >> areas, we're talking about 2400 units that we're going to produce over four years of approximately 600 units per year? >> that's correct. >> i think that that is way too low and i think that that is -- i think that's largely because it's taking too long to get these units online. i know that construction in this city, whether it's [speaker not understood] -- realize as the same challenges

as market rate developers face and affordable housing also faces. so, in a way it's partially an indictment of the way we do housing production in southern san francisco. but i also -- i do think there are things that can be done to accelerate that production. i'm glad the small site acquisition is moving forward. i hope that will move forward very aggressively because it's a lot easier to purchase and rehab, as you know. >> yes. >> than to build more construction. it's also more cost-effective. so, do you see that program accelerating over time in terms of the number of units brought into it? >> well, this coming fiscal year will be clearly the first year of the program and we're looking to see how it works, where it works best. and clearly it addresses a need in the community in terms of preserving the smaller apartment buildings that we typically wouldn't be able to

finance with low-income housing tax cuts. so, we're very, very open to looking at how successful the program will be, the demand for funding to acquire those units, and we're really [speaker not understood] a future, a funding request for that program based upon, you know, the utility of the program overall. in addition, we will be coming back to the board to make some changes in terms of the inclusionary program because there is a limitation in -- there is a 10% set aside in the inclusionary program for the small sites program, but it limits the affordability to 50% median income. what we're looking at in terms of the program is that these are existing units with people of different income and that limitation may be too restrictive in terms of serving the people who are actually there. so, that may be a change that we will come back and ask of

the board in the future. but we are very, very excited about it. there is a lot of interest in the program overall and we're just -- we have an open mind about how expansive that program will be based upon the need -- the demand for it from the development community as well as the demand for it from the residents overall. >> okay. and then timely, so, 2400 units over the next four years in these newly produced affordable units. over the next four years, how many units do you expect to come online through the inclusionary program, specifically the on-site? >> the number is 1500 in the next few years inclusionary. >> two years or four years? >> two years. >> okay. so, maybe 3,000 over the next four years? >> depending on the economy.

>> and depending on perhaps legislation restricting market rate development, [speaker not understood]. there's a lot of uncertainty right now about what development is going to look like in terms of creating those inclusionary units. okay, thank you. >> supervisor breed. >> thank you. i just wanted to make a couple points about the mayor's office of housing in particular and what we have to deal with. and i think mr. lee doesn't always highlight to the level he probably should as it relates to preservation. i think the affordable housing units, yes, we have the housing authority which is in a different category. but under the san francisco redevelopment agency years ago, there were a number of units that were developed, and they were developed with a relationship with the federal government. and hud owns a significant amount of properties in my district where they -- many of

those locations like freedom west and loren miller and other [speaker not understood]. unfortunately they don't have the money, the resources and these are affordable housing units. what happens is we as a city have to work with these particular developments and work with hud and we have to have significant public dollars. and to help make sure those units remain affordable. the challenge is it's unanticipated in our plans as it relates to affordable housing in san francisco and oftentimes building new is more exciting than preserving the old. so, the challenge we have is invest $30 million in a property to preserve over 300 affordable housing units where people actually currently live or build 12 new units with the same amount of money. we have an obligation to make sure that we don't create more homelessness. and, so, i just want to make sure that that is as equally

important as building new affordable housing units. that's one point i want to make. and the second point i want to make is there are no guarantees in what happens when we build new affordable housing, whether we build a lot of new affordable housing "little new affordable housing. there is a lottery system. there are difficulties with people living on the streets in the tenderloin or in our shelters. they don't always get access to this property. in fact, it's very difficult for them to get access to live in these particular developments. and building new affordable housing is not going to change that. and i think we need to look specifically at changing how we make sure that people who need physical homes actually have access to these homes. [speaker not understood] this weekend there were so many people that grew up in san francisco who walked up to me and said that they were homeless, that they were living in a shelter at the first friendship church with their children. and it just blows me away that

we continue to push in this direction, but i can't guarantee that these people who actually need this affordable housing will get affordable housing. yes, we talk about the fact we need to build more and if we have more then there will be less homeless people, but that's not actually true. we need to make some changes to the system so folks who need housing will have access to it and we need to make sure that preservation of existing affordable housing development is a top priority in addition to building new. so, i just wanted to make those particular points about housing in the city. thank you. >> supervisor wiener. >> yes, thank you. and i try to be very clear about this. i'm in full support of making sure that the affordable housing that we currently have is livable and usable and that people have access to it, but we also have a large and growing population in this city who are not currently in any form of affordable housing. they're being evicted. they're at risk of eviction. if they lose their housing they're out of luck,

particularly a lot of seniors. and it's important that as we rehabilitate the existing housing that we are also using the money that we are going to use for creating affordable housing and use it in an efficient and expeditious way so that we're actually bringing that housing online because it is taking too long to produce it now. so, we have a lot of diverse housing needs. i just want to make sure we're addressing all of them in a timely manner. thank you. >> okay, colleagues, any further questions at this point? ms. howard, do you have anything more right now? >> i want to stay thank you to the budget, deborah newman who worked with us on this report. [speaker not understood]. >> [speaker not understood]. >> mr. chairman, members of the committee, on page 55 of our report, first of all i wanted to mention item 5, the mayor's office of housing and community

development escrow account administration fee, we are recommending approval of that ordinance. it would eliminate the $200 fee. secondly, on item 10, as you may recall, our audit report which was issued in june of 2013, in that report on the housing authority, we recommended that the housing authority seek approval from the board of supervisors for a waiver of the pilot in lieu of taxes and we are recommending approval of this resolution. regarding the specific budget recommendations on page 56, our recommended reduction to the proposed budget total $77,079 in 14-15. which would be one-time saving. allow an increase of 34 million 6 49 600 or 66.5% in the department's 14-15 budget. we also recommend closing out prior year unexpended general fund encumbrances which would allow the return of 41,216 to

the general fund. together those recommendations would result in a total of 118,295 savings to the city's general fund in 14-15 ~. we also include a policy decision for the board of supervisors regarding issuance of an additional 28,125,000 dollars as a certificate of participation for 14-15 which will result in ongoing general debt fund payments for 25 years. if the board of supervisors approves these funds, the 28,125,000 should be replaced by the controller's reserve pending future approval and sale of the [speaker not understood]. we have made no recommendations. we just call it out as a policy and make a recommendation for the reserve. and similarly, for fiscal year 15-16 we include a policy decision for the board of supervisorsery adding additional 28,125,000 certificate of participation for affordable housing in 15-16. that will result in ongoing

general fund debt service payments for 25 years if the board of supervisors approves these funds totaling 28,125,000, they should be placed on controller reserve pending future approval and [speaker not understood]. and as i understand it, the department does concur with our recommendations. >> okay, thank you, mr. rose. colleagues, any questions, comments for mr. rose? okay, much appreciated. thank you to the mayor's team for being here. we are -- the last department is the city administrator. they are still working on some technical adjustments with the controller -- excuse me, with our budget analyst's office so we want to hear them back on wednesday morning first thing. hopefully, my understanding is they will most likely at that point be in agreement and we can wrap them up. before we move on to some of the treasure island item, we're going to have to clean up a few of the items with our budget. madam clerk, can you call items number 6 and 11 and i'm going to take a motion to continue those items. >> item number 6, ordinance

amending the subdivision code to adopt a fee to set survey monuments and affirming the planning department's determination under the california environmental quality act. -- i'm sorry, that's item number 5. item number 6, ordinance amending the subdivision code to adopt a fee to set survey monuments and affirming the planning department's determination under the california environmental quality act. ~ item number 11, ordinance amending the administrative code to adjust the fees for county clerk services for fiscal year 2014-2015; to remove fees for obsolete services; and to authorize annual automatic adjustment of municipal id card fees to reflect changes in the consumer price index. ~ 2014-2015. >> thank you, madam clerk. item number 6 is connected with the dpw budget, [speaker not understood]. i'm going to take a motion to continue these items. i'll first open it up to public comment. is there anybody wishing to comment on items 6 and 11? seeing none, public comment is closed. [gavel] >> okay, colleagues, so, i have a motion that we will continue this item to the call of the chair. so moved. [gavel] >> so, ms. zamuda, do you want to do item number 9?

sorry, madam clerk, can you call item number 9, please? >> item number 9 is resolution concurring with the controller's certification that services previously approved can be performed by private contractor for a lower cost than similar work performed by city and county employees, for the following services: budget analyst; lgtb anti-violence education and outreach program; city-wide custodial services, city-wide security services, central shops security; convention facilities management, and security services west south of market; mainframe system support; security services; food services for jail inmates; assembly of vote-by-mail envelopes; security services - 1680 mission street and security services-30 van ness avenue. ~ city and county employees. >> okay, ms. zamuda. >> mr. chairman, members of the committee, monique zamuda from the controller's office. you have before you the prop j certification from the controller that is indeed less costly to provide specific services via contract in lieu of city staffs. we have combined all the ongoing contracting out programs under this one resolution. it includes the board of supervisors budget analyst services. it includes custodial, security, and parking lot security services under the city administrator. it includes ongoing mainframe

system support for the department of technology, security services for the human services agency, food services for jail inmates for the sheriffs, and the antiviolence education outreach program in the district attorney's office. many of these contracting out have been contracted out in excess of 20 years and they are ongoing for the future. beyond that, for the second year, the department of elections assembly, a vote by mail envelope, and city-wide security services for general services agency. public works security services are both 1680 mission street as well as the facility at 30 van ness.

and the remaining services for security services [speaker not understood] is for year two as well. so, again, you don't have any new contracting proposals this year. this resolution would cover the existing. in each of these, the controller's office has calculated a savings that's listed in the resolution. >> okay, thanks, ms. zamuda. colleagues, any questions? okay, this item is on regular budget. so, we'll continue this for public comment as well. so, before that as well, we have two last remaining items, items 13 and 14. 3 and 4 connected with treasure island are going to be heard in connection with our city administrator's budget presentation on wednesday morning. so, madam clerk, can you please calls items 3 and 4? >> item number 3, resolution approving the interim budget of the treasure island development authority for fiscal years 2014-2015 and 2015-2016.

item number 4, resolution approving the budget of the treasure island development authority for fiscal years 2014-2015 and 2015-2016. >> okay, thank you. we're going to continue both items, colleagues. so, first i'm going to open up to public comment on item number 3. any public comment on this item? seeing none, we're going to close public comment. [gavel] >> we're going to to have a motion to continue item number 3 to the call of the chair. this is the interim budget, to the call of the chair. we can do that, take it without objection. [gavel] >> item number 4 will be -- do we need a motion to continue item number 4 as well? which is part of our regular budget? why don't we take a motion, madam controller, deputy controller. ~ do we need to take a motion >> you can continue this for

the same day wednesday for the same time as the city administrator and it will be also continued to the very last day of the proceedings of this committee for final approval. >> okay. so, a motion to continue item number 4, then. call of the chair as well? we can take that without objection. [gavel] >> okay, madam clerk, can you call item number 13? >> item number 13 is a resolution authorizing the airport director to accept and expend a grant in an amount not to exceed $200,000 from the california coastal conservancy for conducting a sea level rise vulnerability assessment of san bruno creek and colma creek just northwest of the san francisco international airport, and for developing sea level rise adaptation strategies, for a term of august 1, 2014 through july 31, 2015. >> okay. ms. wagoner, welcome back. >> thank you, chair farrell, members of the committee. cathy wagoner, [speaker not understood]. the item seeks approval for the

airport to accept and expend a grant from the california coastal conservancy for an amount of $200,000. this grant will be used to complete an existing coastal analysis of sea level rise of san francisco airport and to help us plan for future seawall construction. specifically, the grant will be used to consider and plans climate change relating to southern concerns along the san bruno and [speaker not understood] creek which are just northwest of the airport property. this grant is the result of an application between san francisco and san mateo counties and there is no airport match. so, there is not a budget analyst report associated with this and i just would like to say that i appreciate the committee's indulgence in scheduling this prior to the end of the fiscal year when the grant funds will expire. be happy to answer any questions. >> thank you. i see no questions my colleagues.