>> ordinance amending ordinance, 107-14, for a state revolving loans, for the full amount not-to-exceed, $819 million to besinger finance the costs of various projects benefiting the waste water enterprise. >> okay. thank you. >> welcome back. >> hello, supervisors charles with the cfo in the sfpuc and this item before you today is related to the capitol program for the waste water enterprise and it, and it requests your consideration for expand already existing authorizations to include the state resolving fund loan program. and which has the opportunity to afford quite a bit of savings for our waste water rate payers as we begin to rebuild our sewer system over the next 20 or so years and if you like i have a few slides that i can walk you through if that is helpful. or i could take your questions,

at your preference? >> i think that we will be okay at this point. any highlights that you want to communicate to the public as well? >> only that this is not new authorization, it is delegating authority to the commission to enter into these loan agreements rather than coming to the commission that is the only change. >> okay. >> supervisor tang? >> thank you, i don't actually have any particular questions i was a co-sponsor on this item and i think that it was a great program that was going to be able to participate in. and so perhaps if you could share with us or the budget analyst will share us with the cost saving because we are entering into this kind of a loan program. >> i would be happy to and i would refer to mr. rose to speak further. we have the opportunity to issue loans at approximately half of the cost, that we would enter into for a revenue bond issuance, which at the present rates would be approximately 2 percent and what that means for

the rate payer will be if we issued 100 million in bonds that will be approximately 1.9 million dollars in savings, each year for our rate payers and so it is a significant amount of savings, and we have had these loans in the past, supervisors and back in the 90s during the last larger waste water and capitol program, so we have or two do have a track record to enter into these and pay them off, we paid them all off a couple of years ago. >> defer to mr. rose to speak further. >> mr. rose? >> yes mr, chairman and sperp tang on page 11, we know that based on the current conditions for every 100 million of the loans puc expects to say, 1 million 900 annually in interest payments relative to these bonds. and so clearly we recommend that you approve this ordinance. >> okay. >> thank you mr. rose. >> why don't we move on to public comment for item five? anybody? for public comment?

>> all right. seeing none, public comment is closed. >> thanks for being back mr. pearl supervisor tang? >> would i like to make a motion to forward this out to a positive recommendation. >> mr. chairman there might be a proposed amendment. >> yeah. sme. supervisors the believe that the clerk's office made a recommended change to the legislation, and the department is fine with this recommended change if that is the will of this committee. and my only comment would be that we have had these loans in the past, and i believe that the change of the clerks office and recommending that when the commission takes action on these loans that we actually file those loan agreement with the clerks office. we are happy to do that, those loan documents and we are happy to respond to any request for these documents and we are happy to agree with that change. >> thank you. >> i think that would. >> so through the chair, would

i like to make a motion to amend the document as was highlighted by the staff and take the amended ordinance with a positive recommendation to the full board. >> okay, that motion by supervisor tang and take that without objection. >> thank you very much. >> and mr. clerk, could you call item 6 and 7 together. >> just to note on that previous item the matter was amended pursuant to the amendment with the whole and passed without objection and wanted to note that supervisor mar was absent. >> yes. >> next on the agenda, six and 7. >> societying, please. >> resolution urging mayor lee to form an interagency working group with the participation from the mayor's office of housing and community development and the rent board and coordination with the board of supervisor to create an eviction early warning system. >> item 7, hearing to review housing resource and programs for retention of rent controlled housing and request

the mayor's office of housing rent board, and council of community housing organization and the various other agency to report. >> okay, thank you mr, clerk and so colleagues, these items were called forward and sponsored by commissioner christensen and we will turn it over to her to run the show. >> thank you. >> the purpose of this hearing today is to focus on the challenge of identifying and preserving the existing affordable housing. ellis act evictions are impacting district three and neighborhoods all over the city and we are finding a lot of the long term residents being moved out and these eviction and buy outs are disproportionately impacting senior and low income residents who have been finding it very difficult to find equivalent and or appropriate housing for their current needs. speculation, has upset the balance of our neighborhoods, and it is displaced land lords, and it has displaced residents and land lords content with

modest returns over longer terms cannot complete financially and have been priced out of the market. a lot of our buildings have been hoteled, purchasing, and combined with the short term rentals. >> may i --. >> we have lost our quorum. >> okay. >> pause the meeting? >> yes.

>> hoteling, and speculative purchasing of the real estate in the district, plus the income possible with the sort term rentals has created a work around to the restrictions that prop g intended to impose. making me believe that short term rental enforcement is critical to the retention of housing stock in district three. but a lot of the problems come from simple transition. many of the buy outs and the evictions have been the result of children or other heirs to former property owners, who are drawn in by the prospect of higher returns, and we are doing a number of things about this we need to build more, both with public and with private funds, and the mayor's office of housing has projects in the pipeline include ining our district and i am looking for ward to the passaging of the housing bond in november and i was delighted to hear

about governor brown's budget proposal that will allow san francisco to m some ways restart the city's redevelopment efforts and we have also been encouraging the private development and the civic pressure and the incentives have upped the affordable in many development and my office is working on dwelling unit legislation that will allow the addition of rent controlled unit to existing buildings and we are looking at other zoning adjustment to encourage the small scale, infill development in what is a fully developed district. and we also are working to preserve the housing that we have. and so that the rad program is going to rehab tait more than 500 units of housing in china town. but, in fully developed areas of the city, with aging, which is traditionally meant affordable housing, we face unique challenge and so the purpose of the hearing today is to focus on how we can identify

and preserve existing affordable housing, and i hope that we can highlight the enters to the following questions. what programs and efforts exist to preserve the existing affordable housing? what are the challenges and the stumbling blocks to these effort and how can we remove them and what additional things can we do to retain affordable house and our neighbors who live there? ideally we want to identify and protect buildings before they are at risk, in the meantime, we are also trying to cope with ongoing displacement in researching the housing situation, and in speaking to housing advocates and one of the things that we heard repeatedly is that we are not getting ahead of the systematically clearing out of long term tenants and so we have created a resolution to create a earn warning system that is designed to help us identify the at risk buildings and to connect them with the

valuable resources, and at the early stage this is a simple, short term fix and the rent board is going to add eviction and buy out notices to their data base and when we see the multiple notices, filed on a building the mayor's office of housing and the district supervisor will then be contacted in an effort to put the tenants, in contact with these resources at an earlier stage. and so i want to thank you, supervisor farrell and i know that we have darlene from the rent board here and representatives of the mayor's office of housing, and we have reached out to a number ever community housing advocate and hope that some of them will appear today, as well as others familiar with the real estate industry. and so at this point, darlene are you here? >> we have got it.

>> got it. >> okay. >> thank you. thank you, chairs and supervisors i am dalene wolf, the executive direct and her this is not my usual committee and so it is nice to see you all. i have come to depress you and that is what do i and my colleagues at the mayor's office of housing will try and kind of lighten things up with some of the measures that are being taken. and when supervisor christensen office reached out to us, we believe that it was important to provide a context for this issue, and there is a lot of hyperbaly that is going around the displacement and evictions for obvious and understandable reasons. and depending on who you are

talking to the only thing that both sides can agree on is that there is not enough affordable housing, that is quite obvious. and so wha, we did is take a look at the extent of the problem who is getting evicted and why, and looking longer back, the last ten years s what everybody tends to look at, but we thought that it was actually very interesting historically, to take a look at ten years, 20 years, and because we have been here before. we have, and we are rapidly approach thating state at this point in time. >> and so excuse me for the wanting, nature of this presentation and we of course, find it endlessly fascinating but we hope that it is useful for you. and we have provided you with a copy of this slide show, and unfortunately your copies are not in color, and so it is a little hard to follow, but we are happy to provide that to you, if you would like it and think that it is helpful. >> and so the first slide that you are seeing here, are realize that the way that the

rent board tracks it is through the filing of the eviction notices in our office, the landlords are required to file any eviction notice except for non-payment of rent within ten days of serving it on the tenant, that is where the numbers come from and all of the numbers that the people use from the office, how many eviction notices are being filed and what are they being filed for? >> and that does not necessarily mean that those land lords proceed with an unlawful detain and her that those tenants are actually evicted in court and that is what is being tracked here, if you will see on this first slide, during the most recent ten years, we have received an average of 16, 18, eviction notices per year and i am not going to tell you the numbers what i will tell you because that is too boring, is that our data is for the year ending march. and we are pretty current and we are one month behind in this data, but the most recent year, represents 32 percent more filings, than the average for the last ten years. and because that is a very,

significant increase. if you look and this is the second slide, if you look at the last 20 years, which includes, the, dot com era and in 2010, we were in a recession and we all remember that and a high in 1999. and so, actually, dot com was worse than the situation than it was right knew at its peak and however, the most recent year, represents 14 percent more eviction notices filed than the average for the last 20 years. and so we are still significantly above historical averages and trending in the wrong direction. >> we thought that it would be interesting to show you why our people are getting evicted in san francisco? >> we think that what cause reason and a lot of the attention goes into ellis and

owner move in eviction and those are significant, and ellis numbers may be relatively low in terms of actual numbers, but of course, there is always real people behind all of these numbers which you are well aware and, the problem is that those units are the least likely to return to the market. but, for all of the evictions during the last ten years, the most significant changes have been an increase for breach of rental agreement and a lesser extent for nuisance. and so, while everybody focus actually on ellis and owner move in, the real uptick has been in breach and nuisance and we think that that is obvious why? in a down market where the units are going begging the land lords will put up with behavior that they are not going to come up with as much in the hot rental market that we are experiencing right now. >> the next slide shows all eviction notices over the last 20 years. and what you really see is a significant reduction in owner move in eviction notices.

we think that is because in 1998, proposition g passed which made it much more restrictive to move in for owner or relative occupancy, which of course, led to an uptick in ellis. >> and the next slide, shows the big four, which is really breach, nuisance, and owner move in and ellis for the last ten years, and as we said, in 2010, owner move in notices have declined for the middle of a decade but they have begun to rise in the past three years to the highest number in the past ten years, and the ellis notices have shown a general decline, followed by a recent increase in the past three years and a significant reduction in the last year and we think that was because of the presence of proposition g on the ballot which had a squelching effect and also in the increase of expenses as you know is currently tied up in

court. >> the, last 20 years, basically, the most significant change is a reduction in owner move-in notices and the people will debate the reason for that, which i think actually leads us in to what i considered the most significant of our slides, and it is the most boring and it is not very pretty, but it traps, buy-out agreement and the buy out agreements are under the radar and it is only recently that they tracked the buy out agreement and that the land lords have to file the buy out agreements with the sxofs if you look at these numbers, this requirement has only been in effect since march 7th of this year and we already have 14 recorded buy out agreements but 96 disclosures by landlords to tenants of their rights, if they should engage in a buy out and, so i really think that it is important when you look at any of the numbers in these

slides realize that a lot of this activity was not recorded and it is not reflected in any of the data that anyone has because it was under the radar for basically the dominant period that we are talking about. >> we are as i said, happy to provide this in color, because it is a lot more, and i am happy to answer any questions, and we are happy to participate in an eviction early warning system to help hook the tenants up with resources at an earlier stage. >> thanks. >> it is good to see these things in this easy to read form. >> thank you. >> sorry, supervisor, tang? >> thank you, just really quick, i appreciate this information and the tracking that additional information, and just really quick if we could get this sent to us via e-mail in color i think that would be great, thank you.

>> good morning, supervisors i am from at mayor's office of housing and i am here to follow up on mis wolf's presentation to summarize programs that we have available through the office that focus on neighborhood stabilization. by way of overview, i am going to and i have a presentation, here. to come up. >> and i have provided hard copies to you and i believe for the public as well. >> i have provided hard copy to you and i think that there are some out for the public as well. and we have three broad categories of programs that i am going to reverse the order.

and we have the programs that focus on preserving the rent controlled and the units for the existing residents and we fund the prevention programs and in the event that an eviction occurs, we also have housing preferences for tenant whose have been evicted using the ellis act. >> and well i will quickly run through these and if you are watching take my word for it that there is a presentation and i can e-mail to anybody. >> the ellis act, housing preference, provides priority consideration for income eligible applicant and that is cross the housing and, that is city funded and multifamily and, affordable housing and that is also for the inclusionary house and that is the house thating is built by the private developers. and we also could have a preference for our down payment assistance programs. the certificate applicants do need to meet the certain

criteria and that is what the landlord initiated the eviction on or after january first of 2012 and the applicants need to have lived in the unit for a minimum of ten years. and the second category, of programs that i want to highlight are our community development grants. and we fund eviction prevention and we fund the grants and we also provide the access housing to support and by the way of prevention, we provide short term rental assistance, and we provide legal representation and know your rights, sum seminars as well as weigh sift in move in costs for the emergency shelters to the affordable housing. and by way of access to houptsing, i want to highlight the importance of this program and that is that we provide the grants to cbos and they, help to shepherd the housing in

secure families, through the city process for housing. and i think that it is helpful to have a guide through that process. in the fiscal year, 2014,/15, we reached, approximately 6,000 house holds through our eviction prevention investments we provided legal assistance as well as legal representation and we provided households with the tenant counseling, and we did provide 500 households with short term rental assistance and third and last category of the program is focuss on preserving the rent controlled buildings as well as these restricted affordable housing and this is geared toward current tenants and the first program that i want to highlight is the small sites

program which has the goal of stabilizing the housing for tenant and that is rent crold and we removed the rent controlled buildings from the market by facilitating the purchase by a non-profit and then the conversion of those units to be restricted affordable units. and the landlord has already filed a notice and certainly that building will go to the front of the line but also the buildings that are located in neighborhoods that are known to have a high level of evictions

and have tenants with vulnerable population and low income and the first year, of the program and it was launched in july of last year and, we had only a single applicant and in response, we certainly recognized that this is a new program and we needed to make tweaks in order to make it more successful and so we expanded the program in 2015, to include buildings with two to 25 units originally we were targeting buildings with 5 to 25. and we expanded the program to include and also to include the group housing. and we increased the subsidy per unit and increased the funding commitments and we did increase through these changes, we managed to get more applications to the program and we expect additional applications coming soon and i

think that i saw that miss parent is here from the community land trust and she can speak to the activity. >> the last cat category is the effort to preserve the existing d-restricted units and i don't want to raise any alarm bells this is a limited subcategory and these are buildings that were constructed in the 80 and financed using tax exempt bonds and as those bonds are paid off, in some cases, the affordability restrictions then expire. this is a limited subcategory of buildings, we are pursuing a number of different ways to preserve those buildings. generally, if we can provide an incentive to keep the restrictions in place, we will do so. and i am happy to answer any questions. i apologize for the technical difficulties but i am here.

>> i don't think that they were your difficulties. >> so just a couple of questions, so, as i understand the model now, the small sites will allow for the purchase of these buildings and the question comes the long term and who maintains them and i know in main cases that has been and we have looked to the non-profit entity to do that and yet they seem kind of swamped right now with the rad program, and with a lot of the non-profits accelerating their own efforts it seems like it is challenging to find an entity who can then, manage and maintain these buildings once they are acquired. >> we certainly, understand that everybody is bringing all hands on deck to the housing crisis and everybody is busy and i think that it why we are working so closely in developing the guidelines in the parameters of the program with our known, local

non-profit and that is really why we have made significant tweaks for this fiscal year and we are open to work withing our partner to figure out the ways to make the program work able for them and i think that we have seen a lot, and i anticipate that the program will be more successful this year than it was last and we hope that even more successful going forward. >> so can you speak to how buildings that might qualify for this program how they are being identified, and how much of this is push and how much of this is pull. and to what extent is the mayor's office of housing doing out reach to encourage the applicants to what extent are you working with the other entities to identify appropriate buildings for the program? >> we are trying to identify the buildings as early as we can, and because like anybody, the open market, is challenging, and we once a building hits the open market it is a very competitive climate, and so we have been

working with our non-profit partner and our staff of the mayor's department of housing has been starting with combing and the less listings and then also taking the steps as walking down the street and looking at buildings that seem as though they could fit the mod sxl we are doing everything and anything that we can, and i know that through the mission action, plan for example, the people are reaching out to known land lords, and in or within the neighborhood to make sure that the people are aware of the program. and to get the word out in any way that we can. i think that most important component of this, and i am hopeful that we can work with the rent board on this is to get to the buildings before they actually reach the market. >> thank you very much. >> mr. chair, should we go to public comment? >> sure. >> why don't we open up for public comment, anybody wish to speak on this item? i do have one card, and if there is anybody else feel free to line up and we will have two minutes per person. >> great, thank you supervisors

for having us, my name is jay chang with the san francisco department of realtor and we have over 2200 agents in the city, it is deeply support of the retention programs for the rent controlled housing and stabilizing the affordable neighborhoods this is because our industry is built on the idea of the housing ladder and we hope that a young person in the city will go into a rent controlled apartment and be able to save for the condo and partner up and move on to a single family home and build on that housing ladder, this is how families build well in this san francisco and this is also how the family stays in san francisco. and i think that the housing ladder is a critical part that is part of a healthy housing market and it is missing in the current condition and we are supportive because the rent crold units form the first rung of the housing ladder and we depend on the affordable at every level of housing in order to have the successful housing market. this is critical for both of our business and for the success of the city.

>> we are supportive of the things like mall sites and acquisition program because they help to move the people up this housing ladder. >> we want to make sure that the program is attractive to the property owners and as you heard from the mayor's office and hayward, just recently, the application to this program have been limited and we think that there are a number of things that can be done to improve the program to make them more attractive for the property owners, and first the program is currently under funded and more funding should be to that and we are excited for the housing bond to do that, and second, the income cap is difficult to meet currently and should be expanded to 120 percent of ami for the majority of residents and third tl is a 90 day required escrow program and it is difficult to attract someone to a 90 day escrow. >> sf realtors are prepared to offer multiple services partner with the city to make this program more attractive and including opening up the mls to the mayor's office so that they can find attractive candidates