public housing now in the community struggling to get their own fund and struggling to make sure they're managing those places well and working with the city to assure and guarantee for the future all this housing can be built and the rehabbed and sustained accelerator wow. that's a big word but represents something that all of us believe in it is taken us too long why ways b.a. because we have a lot of rules to go through every site we have there is 10 others competing to buy that site they have resources they're going to again even though it faster we're slower in building more affordable housing we don't control the land and when we do we have to talk with 5 entities and agencies to put together the best deal; right? you know that your deal

experts your deal experts having to go to a many agencies whether a city or state or federal government and all of this and the private sector so i think we're using the word accelerator we have not be able to accelerate now we need to accelerate because is getting more challenging when you have money nets private sector that abundant enough such that on a site we building should be used for affordability now has over priced speculative pricing people buying it for other things if we're not there that site is gone more dangerly small sites where it is housing that is affordable for people and

entities are buying them up for other reasons obviously we have story after story about that we have to accelerate our ability to do this better and finally the word fund you, you know two years ago when i announced that we would start something that will be more alcoholic with our financial institutions our philanthropic world and our community development world i meant to say we'll take a little bit of time it has taken us a couple of years to throne how to do this best and found some terrific clorox collaboration so the word fund it is single word but k34r5ik9 word when we talk about even though funding because it is not just cash out of a

general fund we don't have enough we have so many other needs in the city have to think creatively when it comes to accelerating housing in the city to today's fund is a new tool we're creating it is a funding tool 72 hours a tool that kind of got us together with financial institutions like citibank and chase and outside the working with community-based organizations that were figure outing funding or affordable housing and what once we put that together the city kicked off by saying we can put in about $10 million into this but that is not $10 million of cash so supervisor you don't have to burn my area we're not using cash it's what we we call dent finance those in the world know

when debt financing it is a tool a financial tool but we're able then to use this to attract money from foundations and i think to the tune of another 13 or almost 13 are $14 million and we're to raise the rest so hopefully in the first year we'll accomplish a goal of $50 million with the public and private sector again not about cash we're not giving anything we're creating a financial tool that's why that is a little bit more and more complablth i wanted to explain that to you i'm proud of creating of everyone that came together this is not easy work how can we help our efforts and people in a way from the circles of expertise i want to thank our

startup funder it is kind of like being a staurpt in you believe in the idea and it is attractive enough you're helping the right people folks are saying i'm not sure what you're doing but i want to be part that have staurpt funding and so i want to name a few they include for example, dignity health, the san francisco foundation, city community development and the h lit foundation and bank of america and silicon valley foundation all also grant funder for this initial funding so in other words, people believe in accelerating affordable housing in the city that they're willing to create a new tool that would help us be able to compete with the purely private sector that is impacting our ability to buy down land that can be used more

affordable housing and to preserve affordable housing for people living there like what we're doing in the small site program so i want to say thank you to them for their initial good hit on this i'm also taking the opportunity to call out this is where my biggest role is there is room to grow the fund just because we have $50 million we need a few hundred million dollars because the land values in the city have so vast all over the place our willingness to want to get those sites out the supervisor came in the city and have a vacancy in her district it is up for sale they're selling it for $24 million who will buy it i don't have $24 million i don't know if you have that we need

creative ways that site maybe good more affordable housing in the city to be in the smack middle of the battleground of housing could potentially be beneficiary of this kind funds i know your friends in the mission i i've had a chance to work with meta they know how valuable and we but that in $50 million that has gown occupy we're putting that money together to go to work trying to build and fast and have new partnerships a new tool the housing accelerate fund and again, i want to say thank you to people in the city the people in the nonprofits seesht, the housing development our developer community and today a particular thanks to all the financial institutions that know

this stuff backwards and forwards depended upon their time to educate us about how the fund can be set up and make our city that much more smart you know if you - from the city has to do affordable housing by itself we're fail i admit that i admitted that two years ago we need other tools to make our city smart and this very challenging way and now in other words, to be smart you have to be open to the great new relationships i'm so lucky and thankful for all the groups that step forward to help to create this new fund i hope i caught you in the accelerate fund will do thank you very much. >> (clapping.) >> thank you, mayor ed lee and the leverage that the city created with the he $10 million

investment is critical to the process i want to currently you, you to understand the leverage i want to introduce bob who was a global director of city community capital and want to see he's representing the group many are up here the city is active in affordable housing throughout the country we know that is as an enterprise point of view but i'm sure you know that but we taunted risk in san francisco and the bay area we're proud of the innovation and in this case, the capital will come in and willing to take a risk that is really, really important and unusual for a group to do that before bob comes up i want to thank vicky our personal hero in

this process. >> (clapping.) >> so thank you thanks rich. >> thank you mayor ed lee yes i mean first thank you for tombed it was about two years ago with vicky we were introduced and an opportunity and it was mayor ed lee personally an advocate too to get this vehicle this unique fund set up mike and vicky we've seen the team go in early and looked at the gap in communities development i love the fact that rich and the mayor ed lee they're an angel investor that was about making investment as a team in the collaboration and a plan that really steady many of our preemptions so we came up

from the beginning with a half million dollars of investment to get the fund started get it out of the ground we are my colleagues and city community capital with the largest not the largest bank in the united states but where we are and around the country that is really on area we focus and san francisco is just a model it is a model for us we repeat our spirits here from city to city i've been shouting this accelerate fund right from london with the mayor affordability in san francisco like london like boston it is a major issue the issue for workforce an issue for existing resident and for you and those would aspire to homeowners and affordable living i think the

work of the city and bringing out the accelerate fund in collaboration with so many organizations is unique and i hope that model that the cities what emulate we look at san francisco and envy in the sense a wealthy city culturally and financially and in diversity in the community but it is an expensive city i think the leadership that the city of san francisco and the county a taking something we'll replicate throughout the country again my colleagues are looking at not only building new hours we are hooked on primarily when we preserve the housing we preserve the communities too and with meta and looking at the mission and preserving the mission as much of that community not just preserving the affordable housing but this is often integrated and this is

an added value we think deserving of small business owners to the sustainability fee that many of the units have add ones that many of us can begin with so we say thank you to everyone that is here and thank you for inviting us we're an excited early investor i'll i'm going to turn it over to my colleague of the accelerate fund thank you. >> (clapping.) >> thanks bob thank you, mr. mayor and thank you to olsen and ruby and the amazing team that the mayor referenced and to rich and our board and a special thank you to the investors because of all of you we're here today posed to launch the accelerate fund with

an initial launch amount of $50 million i say initial as the mayor said we're starting we need to grow that amount to one hundred million dollars and then $200 million this is the beginning and all of partners have really done over the last two years of work they've done the heavy lifting to get us here now it is on us we need to start the pulling capital yesterday to buy those sites to buy the building we need to be closing on loans tons of them and fast and we're ready to do it the reason we exist is to give affordable housing developers in san francisco which as rich said are the best in the country for resources and now resources for them to be competitive and sustain the housing market in

san francisco and we're starting with setting the bar high over the next 5 years this is smlg something we'll be here forever in the first 5 years we want 15 hundred homeowners now households accelerated the prozac production and the preservation that's our goal and even when i say that we know that is not enough we have to do way more 15 hundred that a drop in the bucket and we with can't keep on losing buildings and affordability and our residents of san francisco with the support of our foundational funders and the future funder out there i'm talking to everyone, everyone will read about this we can and will do more with our continued leadership in the committees and

the city and nonprofit and affordable housing partners we can hit the ball out of park with partners as the mayor mentioned with the chinatown meta and mission housing tndc, san francisco community laufd we will keep even more of our hard working san francisco residents in their home and keep san francisco as a place that your working families our health care workers, our teachers that people like those he we'll hear from can stay here and grow their families here and stay in the neighborhood to give you a sense of the caliber and commitment of the affordable housing partners i'm going to

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>> good morning. all right. all right, party people, you guys ready to rock and roll? >> all right, that is what i like to hear, thank you. good morning, everyone. i would like to welcome you, this is the regular meeting of the budget and finance committee, i'm supervisor cohen chair of this committee, and to my right is supervisor tang no to my left is tang and to my right is yee and he is going to be joining us shortly, and