>> clerk: item number four, union development. >> thank you, directors. i wanted to give a brief update on some of the discussions coming out of the -- both the work with mercy and coordinating with mohcd and the feedback we're receiving from w plan for the development t replacement units per both the existing market rate residents as well as the residents of the one treasure island member agencies, we're looking at how do we incorporate those units into the number of projects that will allow us to transition existing residents.

tida currently operates over 300 units, operating roughly half of those units. catholic charities, again, about another quarter. and health rights 360 having a smaller number of units. in the one treasure island plan, as those member agencies construct their new buildings, these households in good standing will be tran f -- transferred into units. there will be an option provided for rental transition units, down payment assistance, or in-lieu payment if they're leaving the island.

tida is responsible for constructing these transition units within the sites that will be developing with one treasure island or other housing develope developers, and when they turn over eventually, they would become affordable units. so our current snapshot of the villages at treasure island, they currently have 387 occupied units, slightly more than half are pre-dda households. again, those pre-dda households, if they're eligible for, they can elect a new affordable transition unit. they can relocate to a new market rate transition unit, or they can elect the in-lieu payment or pursue assistance to purchase a unit. so, again, the map here shows

all of the tida parcels outlined in red there. those are all the spaces throughout the program that are available to us to construct the 1,866 units we're responsible to deliver. we have the first two sites here. c-3.1 and 3.2. and you saw the presentation last week by cmg and prior to and loretta on the next subphase of development. these are additional parcels that will be available to us in this next subphase area. so within these parcels, we have sufficient real estate to transition all of the eligible residents, the constraining factor, then, becomes funding availability for the transition.

the program funds come from a contribution of 17,500 per door. that's due when they transfer lots to vertical development entities. the balance for the funding of the construction of the units will have to come from other sources. tax credits, but also potentially project-specific grants through grant programs and other sources potentially. city sources, if the next

affordable housing bond program the city does, these are some of the other sources we can draw upon to help finance these projects. so in terms of strategy and managing the transition. the first project is to develop what source of shares, and the availability of the funding from the state will allow us to move into construction earlier than we would if we were relying just upon the project-related funds, but it also recognizes the history of the island as a naval station and the service of veterans. the second project will be developing in partnership with click charities. that will allow for the transition of all 66 of the catholic charities households plus many pre-dda households

that would qualify for affordable housing. for instance, we have 27 section 8 households within the villages' inventory, so those are all households we would plan to transition into this. and then, also, we intend to construct some overincome units in the catholic charities building. we're working with mercy and catholic charities to target a funds when the availability comes out. the third project, we are planning to develop in partnership with the community housing partnership, and that is intended to transition all 110 of the existing chp households

and would not anticipate to have additional units for pre-dda households because of the program requirements of chp, supporting primarily a former homeless population. and then the fourth and fifth projects would be ultimately required to transition the health right 360 residents and the remaining pre-dda households. that will be accomplished in just the fourth project, but because the overincome pre-dda house olds, we need to make sure we're constructing precisely the right unit for them. we would not be able to rely upon tax credit financing and other external funding sources. we want to be very careful in constructing just the number of

unitals -- units required. it would get us 90% of the way there and wrap up with the remaining households in the fifth project. on the pre-dda, we had enclosed both the 10% as over-income pre-dda housing units, but source to plow shares be only for veterans consistent with their program and not include other pre-dda households. the vip is for formerly homeless veterans specifically.

to offset the loss, we would increase the number of units in the catholic charities and they're supportive of that change. so rather than the source to plow shares building is currently proposed to be 105 units, we would construct in the catholic charities 10% of the buildings, plus 10 additional units for over-income residents. and that really adds to the mix of the catholic charities building as a very diverse residence. as i mentioned before, the chp building is proposed to transition just the current chp

residents. so what that looks like right now over the first five projects, as i mentioned, source to plow share building at 105 would transition the 136 households and then would not incorporate any pre-dda units other than potentially we might have one or two households that are actually income-qualifying veterans amongst the villages' residents and could potentially transition those households into the source to plow shares building. the catholic charity, there's work to be done here. there's a pre-dev loan from mohcd tentatively calendared for

next month. at this point, they're just going in for a $500,000 loan which will allow them to have additional studies to tighten up the count for the building. and then, as i mentioned, the community housing partnership currently sized to transition their 110 households, plus a couple of manager units, and then the fourth and fifth projects, we haven't identified a location, but potentially that fourth project, we're looking at a larger building, potentially as large as 180 units based on which parcel we end up citing that on. so the next steps moving forward is confirm the programming of the swords to plowshare units and the total number of units and whether or not we'll include any pre-dda units, the call is

for the ninth. that just came out. continue to refine the programming for the catholic charities building. that pre-dev loan will be important to support ahsc. and then over the next couple of months, we want to refine the unit count and cost projections for the first buildings that we can really knuckle down with ticd with when we can plan for the project contributions and

other city funds and tighten up the schedule for completing the transition. with that, i will take any questions you have. >> thank you for that presentation. i'm sure that the commissioners have questions. >> thank you for that report, bob. we're always glad to get the reports on the progress of the housing development on treasure island, especially for affordable to low-income families. i'm just wondering in terms of the subsidies available. can you maybe expand a little bit on what the financing is that we're considering in order to support the affordableability

-- affordability of these units. from the state, there's some promising bills that may be coming up. but what are we considering in terms of the financing for these projects, >> as i mentioned, the first two projects, we're anticipating an application on the veterans' housing and homeless prevention program that specifically would support the swords to plowshare programs. so over the life of our program, we may end up having another veteran's building down the road, but that's really, you know, in terms of accomplishing our transition, that's a one-time opportunity. the next is the asic program. based on our conversations with a consultant that has been

tracking the state program, our program on treasure island because of our transportation elements, our public access elements, it's a much more comprehensive set-up and improvements we're delivering, and the fact that we're constructing buildings that are 100% affordable or 90% if we include a few over-income units. all of those metrics position us to be very competitive in the asic program. that's definitely something we're looking at for the chp building but also potentially for other buildings down the road. there are some other programs. one is called no place like

home. it's a program that was adopted to support formerly homeless individuals, particularly those with mental health challenges. right now, that program is being delayed and may have to go back to the ballot for a revote. but that program or one of similar eligibility. it wouldn't work well for our transition units because that particular unit -- that particular program is both one of the challenges we face with many programs is that for programs that are intended to support the construction of new units for the formerly homeless or for new affordable housing units and because a lot of our units are being used to replace

or transition existing households, even though that existing housing was always meant to be temporary, we're being told that our units are not considered new units because they're moving people from one building to another building. so that's a challenge we have with some of these programs is that, as i said, although our housing was intended to be a temporary solution, because we've housed people, when we transition them, it's not a new unit. so those are some of the things we're looking at. also, we're in conversation with the city's capital planning group on when we might expect the next affordable housing bond to go on the ballot. and mo is being supportive within their resources and

within the larger citywide challenge of all of the projects that the city is attempting to move forward, but they are being supportive, particularly on the first project with swords to plowshares because we're not yet generating significant revenues. it's in both sources we're relying upon. >> and how will we be phasing the demolition of the existing navy housing as the new housing comes up? do we have a demolition plan? will some of those units be repurposed? >> eventually all of the existing unitals will be de-- units will be demolished. right now, we don't expect to receive transfer of the existing residential neighborhood from

the navy 2022. none will be demolished before then. and overall, about 50% of the existing neighborhood ultimately lies in the wild open space at the north end of the island. so that housing would not need to be demolished to make way for the construction of new housing and could potentially -- we have more flexibility and the timing there, generally the first areas to be demolished would be those at the southern most edge of the residential neighborhood, what we call the 1,300 and the 1,400 series housings. the 1,400 series units are all two-bedroom units, and the 1,300 series are all four bedroom

units, but included in the 1,400 series are all the swords to plowshares. so as we bring those online, we'll be vacating some of those buildings that are amongst the first to be demolished. with the catholic charities building, they have a number of buildings. some are in the 1,400 series, but they also have other buildings that are more in the northern and eastern side of the residential neighborhood. so as that second building comes online and those chp buildings are vacated, we can refurbish the units and use them to transition people from the areas to be impacted into those areas that will be impacted later. >> thank you. >> thank you. >> thank you, bob. i have some questions. the first one has to deal with

the transition unit options. i'm looking at the presentation here. so the rent is tied to the 2011 -- to the rent board every year, the city rent board. every year they prescribe with the rent. so the transition for treasure island, that amount is tied to the 2011. so all subsequent increases are not -- is that casting stone? i just want to -- >> so that is actually part of my next presentation. i was going to talk about that a little bit. the rent at the time -- currently, the villages is adjusting all of the households' rents annually so they're moving

at that pace currently. the thr and r is stated somewhat differently, but they say your rent in the replacement unit will be the 2,000 rent adjusted per all the cumulative allowable rent board adjustments since 2011. it has some provisions if you're now required to pay utilities because the existing residents, the utilities were included in the rent. if they were required to pay utilities, that would be an adjustment for that type of a cost. generally speaking, it's their rent at the time of the dda adjusted per all of the cumulative allowable adjustments that have occurred since. >> the other question has to deal with the number of units.

you indicated here, right now, those numbers, i thought the process is trying to determine the profile even at this stage of every household. we know the numbers of the pre-dda, and we know them so the number of units are not going to be determined until the time of move. it's going to be way down the line. right now, we're trying to count the number of units. we only have an x amount for everyone in that universe. so you're waiting to that line to down the line to determine. why is that? even now, you know the age, the years, and everything concerning this household. i'm just trying to deduce how that is going to be because you can get to the end, and then we have to start all over again and then some folks are -- that

process just kind of -- again, i'm trying to determine how that would be. wouldn't it be this on set. again, information to say that x family, this is what we know about them? we had taken a map of them, an initial profile for the household, those that are on records. so we know the age. and you're talking to them through this process. some of them have indicated some things or whatever. so if you wait to the end at this point there and need to transition, it's going to be extremely difficult. say, for instance, if one of those households opt for a purchase option, and ticd, we don't have housing at that time. we're talking about financing or whatever. that candidate there, how are you going to treat them? where are they going to be?

how are they going to be housed? on treasure island, are they going to have to wait for that? these are things i would like us to understand from this end as we go along. i know this is fine work you and your staff are doing, but some of these issues, items, i personally would like to understand down the line how we're going to be able to address that. >> yes. so based on the household interviews that arws has been conducting, we've got a pretty good understanding of the community. it's not a precise picture. ultimately, one of the challenging things -- well, challenging or not, but the ultimate benefit that someone selects and the size of the

unit, the bedroom count and other things that they're eligible for is based at the time they transition. and so it's going to take us several more years to construct the replacement units, the eligibility of the household, they may be eligible for a four bedroom unit today but at the time of transition because somebody has left, they may be eligible for a three or a two. it's a dynamic picture. we've learned a lot through our interviews. we've interviewed over 80% of the existing households. roughly 80% of those have provided us with some general househo household general income information. so we don't have a precise picture. of the 80% that have provided us household income information, it

appears two-thirds may be eligible for some level of affordable housing, either qualifying for an affordable rental unit or qualifying for an affordable purchase unit. because of the other thing we've garnered, that more than half of the households have indicated they do have an interest in purchasing a unit. now, we'll need to work with those households because the interest in purchasing a unit and the ability to purchase a unit may not line up. so we'll work with those households, particularly those that believe they might qualify to purchase an inclusionary

unit. currently, ticd is proposing their first building by the end of 2020 that will include both market-rate units as well as 13 inclusionary for-sale affordable units. so we want to make sure that those that qualify are in a position to make offers on those units, that they've completed the certification, and they're able to make offers on those units when they become available. in terms of continuing to house people, until we're able to provide transition units to people, as i mentioned, the intention is for us to continue to house all of the pre-dda

households on the island. if at some point we were pressed to demolish units, and we have not constructed all of the transition units we need to, we have households on the island that are post-dda, and either through transition for if we needed to terminate leases, we could reserve spaces on the island for the households transitioni transitioning. >> this is what i would like to suggest. at the end -- right now, we're at 80%. hopefully in the next few months, we'll be nearing 100 or wherever. let's review the data. let's see what those results e are. i'm interested in looking at that. again, i think we need to plug some of these holes.

we're spending a lot of resources and time to move this thing forward to make sure everyone is on the same page, and we can make the decisions. we're talking about funding which we still don't have. we're trying to transition, and this could be an open-end. it's going to be costly and, again, confusing. so far, how we're doing everything is about the data. i would like to see the data. we can analyze that and ask proper questions of those so we can plan accordingly. with regard to the veteran's request, i think it makes sense. swords to plowshare, i want to make sure their needs are exclusively veterans. that makes sense. the million-dollar question, we

have all these financial instruments that we're trying to pursue, and they all look at the map. i still cannot fathom how we're going to be able to get the funding, you know, for this. thank you, mr. beck. i know you're exploring all the options and talking to the stakeholders. at some point, i think we should invite mohcd here, invite everyone here, so we can have a televised conversation and ask them where we are. i remember a year ago when we brought hcd. they gave us the generic plan. i think that's still where we are. everything is just dynamic. we need to get to the bottom of this financing because that's, to me, you know, we can see

where we are. okay. thank you. were there any public comments? seeing none, next item. >> clerk: item number five, transition housing rules and regulations implementation.

>> thank you, directors. this is a little bit of a follow-up on our conversation from last week. the thr and rs, the housing rules and regulations, provide benefits to the market rate households that were in residence prior to the dda and remained in good standing until a permanent move is required. the thr and rs provide these benefits with a choice of one of three benefit options. first, a newly constructed re rental transition unit. this would be either market rate or affordable. down payment assistance towards the purchase of a new unit or an in-lieu payment if they elected to decline both the transition

unit and the opportunity to purchase a new unit. and it's important to note that the transition benefits are a household benefit, and the household must agree on the single option when required to make an interim or permanent move. today we've completed several dozen interim moves, residents from buena island to treasure island but also from one area of treasure island to another area of treasure island. through that process, a number of people have elected to stay on the island or -- a few dozen others have elected to take an in-lieu payment and move off the island. the transition unit option, the units, as i discussed earlier are located in buildings tida

will be developing that are dedicated to our affordable housing construction. initially in partnership with one treasure island membership and other operators. the rent at the time of transition is tied to the 2011 rent board, as we discussed -- sorry. the 2011 rent for the unit. the household occupied adjusted by an amount equivalent to what is allowed by the san francisco rent board. that's not to mean that these units fall underneath the board or if they're rent-controlled per ordinance, but just that this is the mechanism that has been elected to use to adjust rents over time.

and potentially income-qualifying households would be offered our below-market rent based on their rent. the unit size, again, the size of the offered transition unit is determined at the time of a permanent move. for market-rate households that have not changed since 2011, for instance, if there were three residents in the household, and there are three pre-dda or eligible residents in the household at the time of transition, there would be offered the same number of bedroom units as they had had in 2011 and since. but if the number of household members eligible household number has decreased, they would be offered a number of bedrooms

equal to a number of adults in the household, up to a maximum of four. if an affordable unit, the units there are set according to the program guidelines. for the purchase option, we'll be working with ticd. they will be establishing a pre-marketing window before new units go on sale to the general public. existing households would have the opportunity to purchase units from ticd. that includes both the market rate and the for-sale inclusionary units. and for these households, they have this pre-marketing opportunity to purchase units, but there's also down payment assistance available to these households. the down payment assistance

amount is calculated using the same guidelines that are used to calculate the optional in-lieu payment. and the lower part of this talks about that amount, the amount paid to the household as either in-lieu payments or down payment assistance is based on the amounts derived from the san francisco rent board scheduled for units being demolished. the current amounts would be $6,627 per pre-dda adult tenant up to a maximum of four in the household. an additional payment of 4,419, which is a household payment, if there are minors in the

household irrespective of the number of minor of households. and for each member of the household that's elderly or disabled, there would be an additional payment of $419. that's how the payment amount is calculated, whether it's an in-lieu or down payment assistance. the in-lieu payment would be accepted in lieu of other transition benefits. so if they're taking the in-lieu payment, that means the household would not be offered a transition unit. it would be available when required to make an interim or permanent move. but the thrrs, in addition when making an interim or permanent move, the thrr anticipated that because it would take some time

to construct all the transition units, that it wasn't necessarily equitable to require people to wait for many, many years to receive a transition unit. so there's a provision within the tdhrrs some five years after the dda. if extended, the payment is a household benefit. so it's intended to be made to the household if they elect to leave the island rather than waiting for a transition unit offer. but an individual moving out of a household would not be eligible for an in-lieu payment. it's a household benefit payment. so either the household is moving out, and everyone is

taking the in-lieu payment rather than waiting for the transition unit or if, for instance, they're a four-person household and one person is moving out, the other three would remain as the household and would continue to hold the choice of benefits in the long term. so the next steps in planning for the implementation of the thrrs is to work with ticd and mohcd to develop the procedures for the premarketing purchase opportunity to encourage potentially qualifying households to begin the income certification process to qualify particularly for the for sale affordable units because that's the first opportunity that's going to be available to residents in 2020. that can take up to a year to

complete. so it's not too early to be engaging in that process. and then also, as we discussed, i mentioned last week proposing to make an early in-lieu payment to pre-dda households beginning in 2019 and between now and then developing policies and procedures so that when that offer is extended, that, you know, it's very clear guidelines set up. faqs set out so people can understand the choice that they're electing. i will open up for questions. >> thank you very much. commissioners, i'm sure you have questions. >> thank you very much for that report, mr. beck. it seems that the rules are very comprehensive and actually well-thought out. the purpose of the rules is to

really lesson -- lessen the pain for the people living on treasure island before the massive plan was adopted would, indeed, have housing when it was nearly constructed. i don't have any particular questions, but i think that the most important thing about the transition housing rules and regulations is the communication. it's communication to the people who are affected. i think that you have a program in place for that, clear communications to the tenants. so thank you for that. >> commissioner? >> thank you. thanks, bob. i guess trying to put myself in one of the tenant's place in making the choices on what to do, the first thing i thought of is if i took the in-lieu

payment, is that going to be taxable? how much of that am i really going to be able to use to secure a new place? then it made me think, what would be the opposite if i did a down payment assistance? do i have the household budget to afford the monthly payments? i guess i'm wondering, does our outreach include any financial analysis or advice or show people how to figure out what the tax benefits of one over the other would be? >> yeah. the tax benefits, generally the city's position has been to advise people that they should consult their tax preparer, but my understanding has been that these benefits are not taxable. >> thank you. >> thank you, bob, again, for that presentation.

one quick question. at the last meeting, i think your outreach to the household is about 80%, right? around that figure? and we had recommended to reach out the rest that i'm sure you're doing all options, including certified mail, and you're already making the calls. is that still the case? >> we have a list of all the households, and so we're reviewing that list and what our knowledge and the housing providers's knowledge is of the households and thousand best engage them. the other thing that we're doing is working with arws to get out the summary results in

anticipation that as neighbors talk to neighbors and those that have not engaged in the processes that their neighbors are receiving the summary letters that very clearly describe their status that that will also help incentivize people to come in, but we are continuing to pursue trying to get to 100%. >> thank you. i want to take this opportunity to acknowledge miriam, the director of operations. this is thorough work. we know this is going on as designed. so we appreciate your work on that and the excellence. i'm also going to say at the end of the day, it would be great to have a graph of this report or

supplement information. for the public and the stakeholders, it would be great to have something to post and say, we did this. you're doing a lot. this meeting should be noted on that graph so people can convey the in-depth analyst that's going on and the efforts that's going on is going to be important. you only need three or five households that even at the end of the process, they do not respond or whatever, and then they now become the issue. we want to say, no, this is how far we've gone. this is what we have. we can convey them. and people can request the documents or whatever. thank you, again. any other public comments on this item. seeing none? next? >> clerk: additional future

items by directors? >> commissioners, do you have anything for the agenda? none. okay. so we're done. >> clerk: >> it's great to see everyone kind of get together and prove, that you know, building our culture is something that can be reckoned with.

>> i am desi, chair of economic development for soma filipinos. so that -- [ inaudible ] know that soma filipino exists, and it's also our economic platform, so we can start to build filipino businesses so we can start to build the cultural district. >> i studied the bok chase choy her achbl heritage, and i discovered this awesome bok choy.

working at i-market is amazing. you've got all these amazing people coming out here to share one culture. >> when i heard that there was a market with, like, a lot of filipino food, it was like oh, wow, that's the closest thing i've got to home, so, like, i'm going to try everything. >> fried rice, and wings, and three different cliefz sliders. i haven't tried the adobe yet, but just smelling it yet brings back home and a ton of memories. >> the binca is made out of different ingredients, including cheese. but here, we put a twist on it. why not have nutella, rocky

road, we have blue berry. we're not just limiting it to just the classic with salted egg and cheese. >> we try to cook food that you don't normally find from filipino food vendors, like the lichon, for example. it's something that it took years to come up with, to perfect, to get the skin just right, the flavor, and it's one of our most popular dishes, and people love it. this, it's kind of me trying to chase a dream that i had for a long time. when i got tired of the corporate world, i decided that i wanted to give it a try and see if people would actually like our food. i think it's a wonderful opportunity for the filipino

culture to shine. everybody keeps saying filipino food is the next big thing. i think it's already big, and to have all of us here together, it's just -- it just blows my mind sometimes that there's so many of us bringing -- bringing filipino food to the city finally. >> i'm alex, the owner of the lumpia company. the food that i create is basically the filipino-american experience. i wasn't a chef to start with, but i literally love lumpia, but my food is my favorite foods i like to eat, put into my favorite filipino foods, put together. it's not based off of recipes i learned from my mom. maybe i learned the rolling technique from my mom, but the different things that i put in are just the different things

that i like, and i like to think that i have good taste. well, the very first lumpia that i came out with that really build the lumpia -- it wasn't the poerk and shrimp shanghai, but my favorite thing after partying is that bakon cheese burger lumpia. there was a time in our generation where we didn't have our own place, our own feed to eat. before, i used to promote filipino gatherings to share the love. now, i'm taking the most exciting filipino appetizer and

sharing it with other filipinos. >> it can happen in the san francisco mint, it can happen in a park, it can happen in a street park, it can happen in a tech campus. it's basically where we bring the hardware, the culture, the operating system. >> so right now, i'm eating something that brings me back to every filipino party from my childhood. it's really cool to be part of the community and reconnect with the neighborhood. >> one of our largest challenges in creating this cultural district when we compare ourselves to chinatown, japantown or little saigon, there's little communities there that act as place makers. when you enter into little

philippines, you're like where are the businesses, and that's one of the challenges we're trying to solve. >> undercover love wouldn't be possible without the help of the mayor and all of our community partnerships out there.

it costs approximately $60,000 for every event. undiscovered is a great tool for the cultural district to bring awareness by bringing the best parts of our culture which is food, music, the arts and being ativism all under one roof, and by seeing it all in this way, what it allows san franciscans to see is the dynamics of the filipino-american culture. i think in san francisco, we've kind of lost track of one of our values that makes san francisco unique with just empathy, love, of being acceptable of different people, the out liers, the crazy ones.

we've become so focused onic maing money that we forgot about those that make our city and community unique. when people come to discover, i want them to rediscover the magic of what diversity and empathy can create. when you're positive and committed to using that energy,

>> good evening and welcome to the main ninth, 2018 meeting of the san francisco board of appeals. board president frank fung will be with the presiding officer tonight and joined by vice president swig, commissioner honda and we expect commissioner bobby wilson to arrive after items five a and five br heard. will provide the board with any needed legal advice this evening. at the controls is the board's legal assistant. i am julie rosenberg. we will also be joined by representatives from departments that have cases before the board to this evening. we expect the assistant zoning administrator and at representing the planning department and planning commission. building