efficient business processes. the goal, of course, is to effectively and in a timely basis capture property tax revenues for the city and county as well as providing more certainty to property tax owners about their value. we project over a 3 year period we will be able to add 155 to 280 million dollars in assess values to the property roll. the accept and expend funds are already appropriated in our 2015-2016 budget. we are going to add 4 real property appraisers and these funds provided the opportunity for us to seek these additional outside resources so we thank you for your support and your

approval of these items and welcome any questions you may have. >> okay, thank you, miss whitly. colleagues, no questions at this time. mr. rose, can we go to your report, please? >> mr. chairman, members of the committee, on the bottom of page 19 we note the assessor will expend about $2,570,000 in 14-15 and 16-17 and all of the grant funds and matching funds will be used to cover the salaries and benefits for the 9 newly created staff positions. we also note on page 20 of our report that the source of the matching funds will be nongeneral fund moneys obtained through a work order with the department of building inspection and the 4 positions will be funded by a dbi work order were previously approved by the board of supervisors in 14-15. our recommendations on page 21 we recommend that you amend the ordinance that is file 141181 to require designation in the city's budget system of the 5

positions funded by the state grant that is 2 class 4261 real property appraiser positions, 2 class 4214 office specialist positions and one class 4215 senior office position as grant funded positions to be terminated when the state grant terminates and we recommend you approve the resolution that is file 141188 and the proposed ordinance 141181 as amended. >> okay, thank you, mr. rose. seeing no other questions or comments why don't we open this up to public comment. anyone wish to comment on items 4 or 5? seeing none, public comment is closed. just want to confirm that the department is okay with the budget analyst's recommendations. >> yes, we are, and thank you to mr. rose and his office. >> okay, supervisor avalos. >> okay, and i have no doubt the department will be fine with it and budget chair carmen chiu is pointing out when

positions that were funded by grants are grant funded. that's what's happening here so happy to back the budget analyst's recommendation and approve the underlying. >> we have a motion by supervisor avalos, seconded by supervisor mar. congratulations, we can take it without objection. madam clerk, call item 6, please. >> item 6 is a resolution authorizing the mayor's office of housing and community development to expend stablization funding in the amount of $500,000 for the acquisition of a community facility and service. >> we have the mayor's office of housing. >> good morning, supervisors, claudine dell rosai, i'm here to seek $500,000 from the south of market stablization fund. $100,000 would go to west bay

philipino to use $400,000 is recommended for united players up to purchase 1038 (inaudible) impose the south of market community stablization fee on developers who build new residential development within the rincon development and finally establish the soma community stable daition fund community advisory community, car to advise the board of supervisors on expenditures of the fund. the planning code mandates that moneys in the fund are to be used to address the effects of destablization of businesses on soma.

in 2008 the board of supervisors approved a soma community stablization fund strategic fund and authorized emily cd to administer the plan. the 4 goals of the plan are to strengthen neighborhood communication, 2, to support economic and work force development for low income residents and businesses that serve the soma community, 3, to increase perpetual access for existing soma residents and 4 to improve the infrastructure and physical environment. in 2009 we got the first uc deposit of fees into the fund and some highlights of our investments over the last 5 years or so include the creation of 49 very affordable rental units at a mixed income housing development at 333 harrison. these units are being offered at 30 percent ami we provided start up fubding for the creation of a new program at bishop, the bill sorrel housing program, named

for the late beloved community activity bill sorro this provides assistance in completing affordable housing applications and we also acquire this had year a small residential site in soma where we were able to stabilize 5 low income households and maintain their rents as permanently affordable and we also built a pedestrian street light for russ street in front of minola park. we are seeking $500,000 in expenditures. mohcd released a request for proposal in august of this year foe 3 program areas. first was acquisition of a community program, 2 was for college prep and 3 was strategy consulting intended to provide fund develop. consulting for the entire soma

fund portfolio. 7 bidders came but we only received one proposal. the proposals we received were reviewed by me along with a member of the soma cac, we made recommendations to the full cac to fund west bay and up at their full request and the cac voted unanimously to approve both proposals. the west bay philipino multi service corporation applied for the college prep program. their proposal is to partner with bayview association for youth 100 percent college preparatory program, make them culturally sensitive for youth

in soma. there are a few organizations in san francisco that stand out as providing successful college prep services in san francisco and the department of children youth and families identified 100 percent college prep as one of them. west bay, which has been in existence since 1968, has been serving philipinos and asian pacific islanders in the south of market ever since, is a part of the soma youth collaborative, a partnership of youth organizations that serve soma and whose mission is to instill protective and supportive factors for youth, particularly for youth and families at the bessie carmichael school, the only school in the soma district. this will allow them to have an even wider reach to soma youth and provide college prep services for them. they propose to serve grades 8 through 12 with this money to provide academic support and tutoring, individualized case

management, counseling sessions as well as training for parents related to financial planning for college. the contract if approved would be two years starting july 1, 2015 and sending june 30, 2017. the united playas proposal is to serve as a down payment to acquire the building at 1038 howard street where they have been operating their clubhouse for the last 5 years. they recently celebrated their 30 year anniversary providing antiviolence services to soma and across san francisco. the cac and the soma fund have long been wanting to acquire an asset for the community in the form of a youth-serving space. it's been on their wish list since the beginning of the fund but there has never been any viable opportunities that they have been presented with to fund until now. the building at 1038 howard was appraised at 1,475,000

dollars. up entered into a purchase and sale agreement in january of this year with john hommond of the john m. hommond living trust for a purchase price of 1.4 million dollars. up's grant would serve as a down payment and they would carry back a 1 million loan. the seller would carry the loan for 10 years at which point up would need to refinance. at that point the balance would be approximately $628,000. the close of escrow is scheduled for january 14, 2015, and mohcd would, if authorized, allocate the $400,000 as part of escrow. up monthly mortgage payments are approximated at $6,738, which is about $738 more than

their existing rental payments and up has submitted documentation of an agreement with police polaris pacific to pay the difference between their current monthly payments and their proposed mortgage monthly payments. the rfp that was issued require applicants demonstrate a dollar for dollar match and up demonstrated about $400,000 in matching funds, which is not easy to do. these funds will be deposited in replacement reserves and operating reserves and will also help to pay for other program costs. we have not yet entered into a grant agreement with up, but i have been working with the city attorney on a grant agreement, a deed of trust and dedication of restrictions that would have to be recorded against the property. it would be for a tenure period of 30 years. if up were to foreclose on the property or default for any reason, mhdod would require repayment of the $400,000. within that period of 30 years if there were an opportunity to acquire a different building for the same purpose that may serve its use better and they were in the position to do that, that they may want to transfer the equity of the $400,000 investment to that new property. we understand that the budget analyst recommends that both the board of supervisors and mohdd should be required to approve such a transaction and in the report i think those recommendations are made. the department, however, respectfully would be comfortable with such a transaction provided that, 1, all regulatory documents, requirements and current recitals are transferred to the new property; 2, the new property is located within the

boundaries of south of market as described in the planning code; 3, the building is used to provide services of residents of soma under the soma stablization fund and, 4, that prior agreement is obtained. that's it for my presentation. i'd like to introduce the cochairs of the cac, chris angoko >> in terms of the budget analyst's recommendation, that's something you are not in agreement with? >> we respectfully disagree. we understand the concern is to protect the investment of the city but olson has communicated that he would be comfortable doing the transaction provided that we meet all the requirements. >> supervisor avalos. >> yes, thank you for the presentation and just to say i might have a different amendment than the budget

analyst's amendment that i think is coming from from james' office. >> i haven't seen it yet but i am aware there are those amendments as well. >> i am well aware of the soma stablization fund and its goals. thank you for your presentation and i look forward to hearing from the public as well. >> supervisor mar. >> i know april from james kim's office is here and hopefully she can explain how an alternate proposal from the budget analyst's recommendation in a moment. i just want to thank miss delrosario and the whole cac for really helping empower the south of market neighborhoods. i wanted to thank united playas for 20 years of giving a voice and a future for so many young people in the neighborhoods and the philipino community as well and west bay for connecting with bessie carmichael and fec really helping enhance the educational justice for people

in the neighborhood. i wanted to say, too, i think this stablization fund is doing exactly what we wanted it do do, under the great leadership of the cochairs here and many other people and from what miss delrosario said and hopefully helping united playas have a permanent place and building the community. i'm really inspired by the work and thank you for the great presentation and i'll look forward to hearing what april from james kim's office helping make sure the building is protected but also that the city can move forward with confidence that it really helps enhance united playa's work as well. >> do you guys want to come up and speak for a minute? >> hello, members of the budget and finance committee, my name is chris angoko, last month the cac recommended

funding for the acquisition of a building giving them the opportunity to own their own property and ensure that san francisco will be their home for a very long time. we also recommended the first of its kind, a college prep program in the south of marked neighborhood that also incorporates sensitive programs -- culturally sensitive programs in the south of marked to be served by west bay philipino multi service center. these two areas of funding are important to the cac due to the nonprofits that are leaving the city at an alarming rate and the perception of the lack of youth in the south of market neighborhood. my duties are two youth serving organizations, the low immigrant population that live in the neighborhood are highly vulnerable to displacement and neglect as they are ajay sent to an increasingly high rental

market area. the city has a nonprofit displacement working group and it did a report and in that report it had different recommendations and of the high priority recommendations, one of them was acquiring a community facility which aligns with this request, with this funding. while west bay's college prep program demonstrates an investment beyond high school achievement in a distressed neighborhood, in terms. acquisition we would also like to support the language that the grant stays with the united playas in the case if they relocate to another building serving soma youth. we all know how difficult it is to buy a property in san francisco, even in the high market of

soma. it's been a dream for them to be able to do this. we recommend that the funds follow the organization and that it continues to service soma. in a time of on-going inquaelts the san francisco stablization fund has strengthened low income youth's ability to get into college. for all the benefits these are providing the community i urge you to recommend these two programs. >> thank you. >> i'll speak briefly because my cochair said it far better than i could. you know, as miss delrosario noted, our cac has spent well over a year interfacing the community,

hearing what the community's needs are and we feel confident that these two proposals will address critical needs in the south of market community. speaking to the west bay proposal, thousands of jobs are being created in south of market, you know, every year and probably more than that, and there's a real feeling that the youth in south of market are being left behind in that job creation. the critical first step towards helping south of market youth access this sort of economic opportunities that are being created in the neighborhood they grew up with

is providing them access to college prep services and allow them to get the education to compete for those jobs happening in their own back yard so we hope you will support that proposal. we are also particularly excited to recommend our first grant to assist a community organization in the south of market in the acquisition of their own building. the displacement of nonprofits in south of market has reached a critical state and there isn't -- i'm sure -- there is arguably no nonprofit that has served south of market in the way up has, the population up has, their results are undeniable, the positive effect they have had on the south of market community is unparalleled so we are particularly excited to help this fund do what it's intended to do and stabilize an organization that works so hard to stabilize residents in south of market. we hope, we haven't heard the supervisor's amendments either but we hope you will support the cac and support these proposals as recommended. >> i want to clarify for your question, i haven't seen the final amended proposal but i have seen the draft version of it and i wanted to clarify that the department is comfortable with the concept. >> okay, first supervisor kim's office if you want to come up and talk about these amendments.

>> my name is april menarasio and i am legislative aid for supervisor kim. we are excited to sponsor this item and we're in full agreement with the recommendations of the community advisory committee, both of the recommended projects are exciting and it is intended to help stabilize the south of market community as already described. supervisor kim is a strong supporter of united players, their afterschool program, their neighborhood work and all of the great things that they do as well as west bay philipino. this project in addition to supporting the organization and their work is intended to stabilize the nonprofit organization and the nonprofit sector in being able to stay in the south of market while the south of market has experienced tremendous development. in response to the budget and

legislative analyst's report we are offering two amendments that, to address the points raised in the report and as claudine delrosario described will give united play requires the flexibility if they decide to move that we are offering amendments that are in keeping with the cac's recommendation to help stabilize a nonprofit organization to stay in the south of market. with that i think the two amendments that we're proposing are resolved for the first recommendation of the budget and legislative analyst's to ensure the city has no liability for the loan between united players and john hommond, so we respectfully request, resolve the city has no liability for the loan between united players and john hommond and second, resolve if within the tenure of the period of the grant united players

enter into contract to sell 1038 howard street and acquire a different building for the same purpose, united players may transfer the equity of the property to the new property provided that some of the conditions that claudine delrosario described, one, that you obtain prior approval from the mayor's office, the building is located within the soundaries of the south of market as described in planning code section 3-18, which is the enabling legislation, and the building is used to provide services for the residents of soma under the requirements of the south of market stablization fund and finally that all recitals per the grant agreement apply. >> thank you so much for the details on that agreement. thank you so much. any questions, colleagues? >> thank you, we haven't heard from the budget analyst yet but i'm looking to make an amendment based on the input

from miss delrosario >> so we have a report from our budget analyst. >> yes, mr. chairman, supervisor avalos, on page 27 of our report we state the soma community stablization fund currently has an available balance of 10.3 million dollars as shown in table 4 and the available balance will be reduced to 9,805,576 if the board of supervisors does approve the proposed allocation totaling $500,000 to united players and west bay philipino multi service corporation. then on page 20 of our report, the mohcd has advised us the city has no liability for the loan between united players and john hammond and we state because the city through the soma stablization is providing the down payment for the purchase of 1038 howard street

by united players, mohd will require that united players will replace the value as part of the agreement between the mayor's office of housing and community development and united players if the 1038 howard street property is sold. so our recommendations at the bottom of page 29, we recommend you amend the resolution to state the city has no liability on the loan between united players and mr. john hommond and they will be required to reimburse the city plus a proportional share in the value of 1038 howard street from the proceeds of any sale of property including sale of the property due to default or foreclosure secured by the property. we recommend you approve the resolution as amended. i would add we believe any future transaction for a new building should be subject to board of supervisors approval. we are not in any way opposed

to that but we think there should be a separate transaction, it should go before the board of supervisors and should be separately approved if that occurs. >> thank you. now let's open this up for public comment if there are no other questions. is there anyone from the public that would like to speak? >> good evening, ladies and gentlemen, i just happen to be here at city hall taking care of some other business. my name is ace washington, i've been around the city for about 25 years. i been noiing rudy about the same period of time and united players are a very needed organization in the city. i'm here to say i'm from the western addition and i'm supporting it without a doubt, but i really wish the same kind

of situation was in the western district where we could come to you and ask you for the same thing. i'm hearing full support of this project here because i think it will start a new era in our city with the younger leadership in the city and county and so many years we have been funding failed efforts over and over and over. but i'm here to say that rudy and the united players has a proven track record throughout the city for a number of years through the hard times, bad times, the murders, the good times, and i think that this program is well overdue, needed and yours truly ace on the case will give the stamp of approval to the united players. congratulations, rudy, congratulations. >> thank you, mr. manelo >> good evening or good morning. good morning, gentlemen. thank you for this opportunity to speak. my name is alan manalo, i am also a member of the soma community

stablization fund part of the, a member of the citizens advisory committee. i'm speaking also in support of this expenditure to help the united players acquire their building and also for west bay to receive funding for their college preparatory program. i've been a cac member for a little bit over 5 years now, almost 5 years, and it has been one of our dreams, one of our goals, to help a community organization such as united players, especially we all know the kind of work they are doing, the very important work they are doing in the south of market area and it has been our dream, our goal, to help these organizations thep themselves. one big step is to have them acquire their own building. we

all know about displacement issues with nonprofits, we all know the changing face of the south of market area and i think it's extremely important that we support organizations like united players, like west bay, to continue the kind of work that they are doing. i'm in support of the changes and recommendations of the office that people have just talked about with jane kim and i just urge the committee to consider moving this along so we can continue the positive work they are doing. thank you. >> thank you, mr. manalo each member of the public will be allotted the same number of minutes to speak, except that public speakers using translation assistance will be allowed to testify for twice the amount of the public testimony time limit. if simultaneous translation services are used, speakers will be governed by the public next speaker. >> i'm here to urge you to approve the funding of our proposed college prep program for underserved philipino immigrant youth rk as well as somewhat discuss the widening inquaelt in the city. accord

to go a may 14 study commissioned by the council collaborate i've of asian american nonprofits, philipinos have among the highest high school dropout rates in san francisco with an alarming and steady increase since 2009 to 3.8 percent as of 2012, which is more than half the san francisco average of 7 percent. that same study also shows that san francisco has one of the highest asian american poverty rates in the nation practically equal to that of los angeles and new york cities. west bay philipinos proposed college prep program will help address those two key findings in that study and as a fairly recent immigrant myself i am very aware of the challenges new philipinos face. we are unable to immediately adapt to demands of