the costs. our intention is not to fund the costs but our intention is to ask the contractor to fund that cost or the designer to funds that cost depending on the responsible parties. >> supervisor cohen: what is the plan if the contractor or the folks that you plan to fund the cost refuse? >> we would take legal action to force them to do it. >> supervisor cohen: you would not come to the -- >> we have no intentions to ask for more money. you have given us plenty of money. >> supervisor cohen: i agree. ok. how much revenue would go towards -- anna said a portion. i think i heard 17%. i'm not sure. i want to hear how much of this item will go towards the transbay repairs. >> repairs or the transit -- completing the project? the city provided us $260 million to complete the project.

and our project budget is two to 59 million. i am not sure what portion of the 200 million -- >> sure. we will go back to the sources and uses for phase one --dash phase i of the project. >> supervisor cohen: thank you >> yeah, if we could bring that back up on the screen. for phase one of the project, the amounts that would be funded by c.f.d. bond proceeds that could be affronted with the city interim financing is based on the approved budget of 2.25 mine -- 2.259 million. of that amount of the total c.f.d. proceeds, tjpa has already received $149 million from the first bonds that were issued last november and there

has also been $103 million of the interim financing that has been drawn. that total is $252 million. so tjpa would only have access to a remaining $128 million. or $118 million depending on if you are looking at -- or a better figure is $118 million as a remaining amount of the transbay downpours -- jumped joint powers authority would have access to. if any proceeds are raised above that amount, then those proceeds would go to pay down the interim financing. i'm not sure if that answers your question. >> supervisor cohen: i'm not sure if it does either. thank you. we will go to public comment at this time. any members of the public who would like to speak? please come up. >> this is another good time for me to demonstrate poor

supervision and management of the taxpayer's money. i have already demonstrated well over a year and a half to two years ago, a minimum of $217 billion of tax free money has been awarded to twitter and high-tech companies. you have been talking multimillions of money that has to be accounted for. that has to be put on a bond. that draws interest and taxes have to be paid on its. then you turn around and give billions of un- taxable money to the high-tech companies. the amount of money you are giving them could pay for the lease that is being prayed for for each and every speaker that came here before me. i'm using this as an example on how a mistake has been made to not put twitter on this ballot. to put an end to that free multi -- multitrillion and billions of dollars of tax break that those

high-tech companies is getting. that money could be used to help not only the situation here, but the most vulnerable people here in the city. jack dorsey, the executive c.e.o. of twitter is laughing at you. if he is watching this demonstration right here about how you are arguing over multimillions and you are giving him a free billions dollars. it is an insult on your intelligence. i have to speak up for you like i speak up for the most disadvantaged people in the city instead of rubbing it in your face, i have to -- i have a lot of top class respect for you but i have to be hard and heavy sometimes to make you realize my points. it is called respect. is that clear? i want to put a strong emphasis on it. >> supervisor cohen: and are there any other speakers? public comment is closed. what i would like to do is to hold these items, seven and eight in committee for one more week if that is ok with you all.

i have some follow-up questions that i wanted to touch base with a few other colleagues who are not here today. can we hold this for one week? >> yes. >> supervisor cohen: thank you , very much. we will halt until the next board meeting and the next budget meeting. when is that scheduled? >> that will be october 25th. >> supervisor cohen: october 25th. thank you. we will continue item seven and eight to the october 25th budget and finance meeting. thank you. all right. please call item nine. >> item number 9 is resolution authorizing the department of the environment to accept and expand grant funds in the amount of approximately 300,000 from the association of the bay area governments to perform additional multifamily and commercial energy efficiency program implementations for the term from july 1st, 2018 through december 31st, 2018. >> supervisor cohen: we have peter from the department of

environment here to present on this resolution that allows the department of environment to accept an additional grant fund from the association of bay area governments and to continue the implementation of the bay renin energy efficiency program for large family and commercial buildings. thank you. the floor is yours. >> thank you. good morning. thank you chair cohen and supervisors. i'm from the department of environment. before you today is an accept and expand on the association of bay area governments in the amount of $334,000. the grant funds will be used by the department to perform additional multifamily and commercial energy efficiency projects as part of the bay area regional energy network or bay renin program. we have been participating since 2013 and we receive an annual grant allocation for this work. that allocation was already approved by the board earlier this year.

what is before you today is a mid year augmentation of funding that is being awarded to the city of san francisco because of our success and expertise in delivering energy efficiency retrofits to multifamily dwellings. debate rim program has a direct impact in the lives of san franciscans by improving essential services like hot water calculating and building safety while reducing energy costs. the program reaches every corner of the city including market rate affordable housing and s.r.o. since 2013, we have assessed over 22,000 units and over 300 multifamily buildings. we have completed retrofits in over 7,000 units. we currently have over 1,000 units in construction for retrofit. so this grant augmentation before you will support the existing implementation of our multifamily program and it will also be used by the department

to develop a program plan for expanding retrofits to the commercial building sector in 2019. this expansion of service will help deliver energy efficiency benefits to more of the building stock while providing a program model that other bay area counties can follow. the department will conduct this work through existing staff positions to the end of the term of the grant. i want to thank supervisor yee for sponsoring this item and we are here today to ask for your support and answer any questions that you have. >> supervisor cohen: thank you all right. we heard a related grant earlier this year for the same project, also worth $500,000. this is a second distribution of its. this is a pretty straightforward request that this body would hear. i would like to go to public comment. would any members of the public wish to comment? seeing none. public comment is closed. i will make a motion to approve with a positive recommendation to scent to the full board and we will take that without

objection. thank you. please call item ten and 11 together. >> item ten resolution approving determinants of specialty retail concession lease between the city for a term of seven years and a minimum annual guarantee of 225,000 for the first year of the lease. item number 11 is resolution approving the terminal to casual dining food and beverage concession at lease number 6 between s.f.p. america and the city for a term of ten years to commence upon approval by the board and a minimum annual guarantee of $250,000 for the first year of the lease. would you like me to call item 12 as well? >> supervisor cohen: yes, please. >> item 12 is resolution to approve a contribution agreement between united airlines in the city providing for a financial contribution by united airlines in the amount of 6.25 million towards airport infrastructure projects. >> supervisor cohen: thank you >> here we are again. and other budget and finance

committee meeting and another presentation from the airports. what do you have for us today? >> good morning. i'm from the san francisco international airport. i will address the lease items, items 11 and 12 together to begin with. actually, i think it is ten and 11. the airport is seeking her approval to award to concession leases in the airport's terminal 22 doing business businesses in the chocolate market for a retail store lease and s.f.p. america doing businesses sweet maple. a casual food and beverage concept restaurant. the lease has a seven year term and the lease term with s.f.p. is for ten years. both leases have a minimum annual guarantee of $250,000 and will pay the minimum annual rent or a percentage of gross revenues formula rent, whichever is greater. over the term of the two leases,

the airport would receive ranch totaling at least $4 million based on the minimum annual guarantee. but airport staff does forecast that those tenants will be paying the rent on the higher percentage formula basis. these leases are the results of a competitive request for proposals process with the companies being ranked the highest proposers for each concept. the budget analyst has reviewed the leases and recommends approval and i would be happy to answer any questions that you have. >> supervisor cohen: thank you these two items are for retail and dining leases for the chocolate shop. and for the restaurant, sweet maple. both contracts were awarded through a competitive process. the net will combine at a believe about $4 million. >> over the term. based on the minimum annual guarantee of the term of both leases. >> supervisor cohen: that's fantastic. did you also talk about item 12? >> no.

the united contribution agreement. i would be happy to do that now if you want. >> supervisor cohen: let's see madam clerk, did you call item 12? tell us about item 12. >> ok. item number 12 is a contribution agreement that the airport would like your approval for with united airlines in order to accept $6.25 million towards the cost to design, acquire, construct and install 10400- hertz generators and preconditioned air units on plots 40 and 41 at the airport for overnight aircraft parking. preconditioned air units and converters allow parked aircraft to reduce emissions by powering the aircraft rather than having the aircraft used auxiliary power, which runs from burning jet fuel. the total cost of the project is $25 million. which includes $10.58 million in

faa grant funds and 8.1 civic dollars and airport revenue bond proceeds that would be in addition to the 6.25 million from united. the budget analyst has reviewed and recommends and i would be happy to answer questions. >> supervisor cohen: thank you i appreciate that. i will pivot to the budget legislative analyst. let's hear your thoughts. >> ok. first off these are two concession leases are selected by the airport to a competitive process. the terms of the leases will be summarized on page 10 of our report they would pay the greater of the minimum annual guarantee or a percentage grant based on the seven and ten year terms, the annual guarantee to rent to the airport would be $4 million. summarized on page 11 on the report. the airport does expect to get the higher percentage grant

rather than the annual guarantee we recommends approval of both of those resolutions. the third one, item 12 is a contribution of $6.2 million from united airlines towards the cost of the generator and air conditioning unit. the budget for this is dependent -- is $25 million. we summarize it on page 14. the sources of funds for the project include a 10 million-dollar grant from the federal aviation administration. the airlines contribution of $6.2 million and then the airport revenue bonds would contribute $8 million. in terms of the airport revenue bonds, these are paid back through charges to the airline through the lease and use agreement and we recommend approval. >> supervisor cohen: thank you i have a question. with the contract as it relates to item 12, the contract with united would pay for 25% of the total cost of the capital project. who is paying the other outstanding 75%?

>> the other 75% is what the f8 dutch faa would give us an grant funding and then the airport's contribution is a .1 -- is 8.1 set million dollars. they equal that $25 million in the total project cost. >> thank you. what i would like to do is go to public comment on items 10-12. if there is a member of the public who would like to come and talk on these items, you are welcome. public, disclosed. all right. -- public comment is closed. thank you. how about this. we approve all three items with a positive recommendation and scent to the full board. thank you. we will do that without objection. moving on. item 13 please. >> ice-whether 13 is resolution of the mental health services act annual year update. >> supervisor cohen: all right this is an annual update of our progress on the mental health services act. welcome back.

this particular act garners the state funding for a variety of county level mental health care programs. the floor is yours. welcome. we look forward to your presentation. >> thank you. good morning. i oversee the mental health services act program for san francisco. to give a brief overview of the updates, i put together a powerpoint presentation. the mental health services act as a state program. it was created in 2005. it is designed to support the transformation of the mental health system to address needs and is based on community collaboration. i know we are required to provide an update to the plan and for this annual update, we

have seen 18 community firms and individuals who participated in them. we held a public hearing of the mental health board. currently we are seeking approval from this body to approve a resolution authorizing the adduction of the mental health services act 18-19 update this slide shows a summary of the revenue and expenditures over time. this is a 12 year span. blue is the revenues and purple is the expenditures. as you can see, the revenue is very volatile. we have been able to expend violent -- volatility of the revenue. it sets limits for the amount you can have an end an economic downturn. that amount is approximately

$7.7 million. as of june of 2018, we are able to admit to that mark. >> supervisor cohen: just to interrupt, i want to make sure i heard you correctly pick the legislator took a vote that passed that said putting a limit on how much we can save. >> correct. >> supervisor cohen: ok. do you know how they came to the figure 7 million? >> on the next slide, the formula that was designed for that senate bill was that 33% of the five-year revenue of the community services of supports should be the max we can have. so the community services of supports 33% of the five-year revenue from that component is the max we can have and that amount is approximately $7.7 million. that is how i came up with that

amount. >> supervisor cohen: do you know who carried this legislation? >> i want to say bill but i need to get back to you on that. >> supervisor cohen: no thank you -- no problem. thank you. go on. >> we are looking at the risk and we are required by law to distribute our revenues across the five components of percentages. some of our revenue goes to that component and 19% goes to prevention and early prevention and five% goes to innovation. the other two components we can move up to 20% of our five year average and to the other two components which is workforce education and training and facilities and technology needs. each of these components have a revision. for innovation, they have to spend the funds within three years. and for the other two, we have a

revision period of ten years. currently in san francisco, we have approximately five programs that we funds that range from an array of services that include prevention, early intervention, outpace student housing and intensive treatment. just to highlight some other parts of our program, it is a program that provides wraparound services for serious mental illness. over time we set -- we have seen an 80% decrease in mental health and substance use emergencies. one of our focus programs, african-american program, we saw a 98% reported an increase in the social connections. and for prep, which is an early psychosis program, 81% of clients demonstrated a decrease. finally, we have the san

francisco unified school district and 95% of students reported coping with stress as a result of therapy. looking forward 418-19, we are expanding our transitional youth program for youth 16-24 to add a mobile treatment of service which is a treatment that moves around the city. and also to develop population specific programs about how to improve the underserved, like the asian community, african-american, lgbtq, just to name a few. we have three innovation projects that we are developing. one is around technology and mental health. it is a program that provides psychoeducational lines to help reduce isolation and increase social connectedness. there is a proposition on the ballot.

it is a two billion-dollar housing bond that helps develop housing for individuals who are homeless with serious mental illness. this is a state program. the reason why we are keeping an eye on this program because at a state level, we will be paying back the bond. to have an impact on the local revenue over time. lastly, for quality improvements , we commit to an outgoing evaluation of all programs and projected revenue for 18-19 is around $35 million in our projected expenditure is $33.3 million. thank you. >> supervisor cohen: thank you for your presentation. supervisor stephanie has a few questions to be three i do have a few questions. are we holding onto any funds because of the ongoing lawsuit at the state? are you familiar with the lawsuit? >> which one? >> supervisor stefani: it is a lawsuit that was filed after the

2 million-dollar bond was passed basically saying that housing wasn't a legal use of the ballot measure fund. i know that there are some funds that we are not able to spend because of this ongoing lawsuit and i'm wondering if you know the status of that lawsuit. >> when it did, initially this program was supposed to be a housing program and was meant to be for 2016. after the lawsuit was put forth, the implementation didn't go through. it did not affect us locally. it was put in the november ballot. if it passes, it speeds up the pallet -- the process and we can keep an eye on the impact because the board has repaid back the program. >> supervisor cohen: ok. thank you. how much do we receive from the state for all of this

programming? >> can you please put back the slide? thank you. our revenue is very volatile. it varies. on average, our average revenue is about $30 million for five years. >> supervisor cohen: how can we smooth out the volatility of the revenue? >> we cannot smooth it out. we have -- >> supervisor cohen: based on the wet? the number of billionaires? >> it is a one% tax on individuals who are making million dollars or more. we have to have a reserve and put a limit on it. we also have a little unspent funds that we could use to help us during an economic downturn. >> supervisor cohen: is that the only -- revenue source?

>> yes. we are under the beaver health services which is under the department of public health. it is a mix mixup of less than ten% of the overall revenue. in some cases, they can help support programs that we fund. >> supervisor cohen: so then i would say that 100% of the money that we receive comes from the state. >> correct. this is a state program. >> supervisor cohen: ok. another question. what is the demographic breakdown of services across these five funding areas? in your presentation you highlighted asian american, african-american -- >> there are prevention element components and that we are one of the five companies. we have what we call population focused programs that use

community-based evidence to help address the needs of various cultural and specific communities. with that, we expend about five% of our budget with this population. however, we still have the old community serving programs that have a good percentage of various ethnic and various cultural communities. >> supervisor cohen: ok. do you have an idea or a statistic you could share with us about the breakdown between the sexes? between the number of women that are served versus the number of men served? >> overall, no. everything is broken up by component. each component has a rule as to which type of services can be provided under this component. this report i'm giving you has a breakdown for demographically gender, age and sexual orientation and things like that is all broken down by various

components. >> supervisor cohen: thank you i appreciate that. all right. i have no other questions. we should go to public comments. thank you, very much. does i don't want to comment on item number 13? seeing none, public comment is closed. i will make a motion to approve this with a positive recommendation. if i can take that without objection? this motion is moving forward with a positive recommendation. thank you. madam clerk. before we close out, i would like to make a motion to rescind the vote on item five and i would like to weight until i get an answer about the five g versus four g question that i raised earlier when we were dealing with item five. may i get a motion to rescind the vote for item five? thank you. thank you. i would like to continue item five to the next meeting on october 25th. just as a point of clarification , do i need to take a public comment? thank you. i would like to move that we

hear item five on the agenda for october 25th. thank you, very much. without objection. is there any business before this body? >> there is no further business scheme on -- >> supervisor cohen: thank you we are adjourned.

>> i came to san francisco in 1969. i fell in love with this city and and this is where i raised my family at. my name is bobbie cochran. i've been a holly court resident for 32 years. i wouldn't give up this neighborhood for nothing.

i moved into this apartment one year ago. my favorite thing is my kitchen. i love these clean walls. before the remodeling came along, the condition of these apartments had gotten pretty bad, you know, with all the mildew, the repairs. i mean you haven't seen the apartment for the program come along. you wouldn't have believed it. so i appreciate everything they did. i was here at one point. i was. because i didn't know what the outcome of holly court was going to be. you know, it really got -- was it going to get to the point where we have to be displaced because they would have to demolish this place? if they had, we wouldn't have been brought back. we wouldn't have been able to live in burn.

by the program coming along, i welcome it. they had to hire a company and they came in and cleaned up all the walls. they didn't paint the whole apartment, they just cleaned up the mildew part, cleaned up and straighted it and primed it. that is impressive. i was a house painter. i used to go and paint other people's apartments and then come back home to mine and i would say why couldn't i live in a place like that. >> good morning, everybody. good morning! my name is

>> in the community that when we build affordable house north a community, we build it for the residents in that community who need it the most and who can barely afford to live here. china town is an amazing neighborhood by it has low income residents who badly need affordable housing. a great project is being built nearby, 88 broadway, which also includes. this will provide 178 homes for families and seniors many of that's really exciting. many of the affordable unit in the senior housing development are unfortunately still too

expensive for the seniors who live there. in fact, 56% of all seniors living in all of district 3 are at 30% of area median income and below and for chinatown, the percentage is even higher. opportunities for affordable housing must reflect neighborhood needs and that means, this senior housing cannot be set at affordable levels that chinatown seniors can't afford. the city is making these senior housing units even more affordable. today is why we're here to announce that we're going to be doing this by buying down the affordability levels on 13 of those units, which will move these homes from 60% of area

medicinit willcost $710 a month. the deepen affordability is made possibility through the city's investment of $1.5 million. this investment represents my commitment that when we build housing that our city meets and we need to make sure the people in these communities where we build affordable housing can qualify for the housing we build. i'm truly proud of the work that has gone into this project. i want to thank bridge housing for john stewart company, the port of san francisco, the mayor's office of community

housing development. i want to acknowledge our community partners in this effort. china town community development center, the chinese progressive association, the community tenants association, and i also would like to thank barburcy coast neighborhood for this support. this is a project that is a part of this community and we haunt to make sure have a real shot at being, maintaining and continuing to be a part of this community which is why this investment is important. one of our champions on the state side, as it restate relato affordable housing and someone who is working hard, not only for the residents here in china chinatown, our assembly member.

[applause] >> thank you. it's fitting that this morning, as it's been raining, just as this press conference is starting, the sun is coming out. as our city has been experiencing the intensity of the housing challenges that we have, today is a bright spot and an important announcement on how we move things forward. let me start by thanking mayor breed, your city departments for your investment in real affordability. and ensuring projects like this move forward. as a resident, i'm grateful to you and what everyone here is doing. i will say as a former supervisor of district 3, i want to thank the neighborhood associations, particularly the barbury coast neighborhood association, our non-profit organizations from ccdc and the pca and i want to thank bridge housing and the john stewart company and others, for moving forward this important project.

i will say, as a chair of the assembly housing committee, i want to thank governor brown and my fellow colleagues for voting and signing ab14-23. some of you may have known that we had to get changes to our state-public trust law in order for the 88 broadway project to include a childcare center, as well as to have the mixed income affordability that is the hallmark of this project. it takes all of us working together to ensure that we are addressing our housing challenges. this is exactly the kind of project that we should be building. projects that build affordable housing, community, that takes care of families, immigrants and seniors. this is what san francisco is about. i just want to thank everyone who has come together for this important announcement. thank you. [applause] >> i'd like to introduce one of the partners in this effort who

is helping with the development of this project, maria debore, the vice president of development for bridge housing. >> thank you, mayor breed. good morning or good afternoon. my name is marie with bridge housing. we're one of the co developers along with the john stewart company. it's a mixed-use multi-generational development with a broad range of housing needs, including affordable housing, middle income housing and housing for the formerly homeless. the project includes retail, a community-serving childcare center with programs and supports for all children of all income levels and incorporates a robust services plan that tends to the needs of the seniors, families and formally homeless tenant populations that will be living there. the john stewart company and bridge housing are co developers on this project and are very

excited about the deeper vulnerability levels at 88 broadway and 75 davids project. the 30% units will serve very low income residents. it will be one additional step towards meeting the deep and continuous needs to create affordable housing opportunities and will be reflected i have housing needs in the chinatown and broader community. the proposed project will pursue the city's goal of integrated a diverse population with the family and senior components of the project. a.m.i. levels will range from 30% a.m.i. to 120% a.m.i. with five 30% units. at the senior building, rents will range from 30% to 70% a.m.i. and will include a 28% homeless as well as the 1330% units that were just added. the developers have done

extensive community outreach and held close to 30 public meetings to obtain approval for the 88 broadway and 435 david project. early planning began in 2014 for this project. when most 'em parked on a goal to form the 88th broadway working group to the community input while conceptualizing this affordable housing project. as a result of early engagement and the relationships with the community, the city's vision to create a broad range of affordable housing is finally moving forward. we're excited to start construction in the second quarter of 2019 and we'll have the first apartments become available for residents in the summer of 2020. thank you. [applause] >> thank you. chinatown community development has been an incredible force of working with the community to make sure that our seniors have access to safe, affordable

housing. and they are the ones who brought to my attention the concerns about the ability for the residency, the seniors of chinatown to have access to these particular units, because the affordability levels were too high. at this time, i'd like to bring up reverend norman fong, the executive director of chinatown community development, to say a few words and talk about the incredible work they continue to do to support our seniors. [applause] >> ok. first turn to the person to your left and right and say you are beautiful. you are beautiful. mayor's office of housing. all right. it's a beautiful day in san francisco and we're here at heart of san francisco. this is it. this is where our city grew from. until today, there are still many seniors that live in chinatown in single rooms.

i think we can do better. today, we celebrate every -- the mayor. [laughter] and others who added some. of course we want more but today symbolizes the heart of san francisco's showing real compassion for seniors that should not have to suffer at the golden years of their lives. also i i want to celebrate the team. i want to celebrate c.p.a., the community tennis association, seniors themselves who said we need to get more affordable housing. this change of percentage from the 60 to 30% is a big deal. so we have to do more of this. mayor breed, i know you will do more where we can find a way to build more affordable housing reflecting the true heart of san francisco and making it beautiful. all right. [applause] >> we do have a representative from the community tenants association.

we're going to ask her to come up now and say a few words. [applause] >> hi, everyone, i'm resident of community tenants association. glad to see the future of both the housing project have set

aside for seniors, however, i believe a lot of seniors cannot afford or don't even qualify to apply on the income requirement and rent level is at 15% a.m.i. >> now we have a good news.

the community and may have have been advocating for lower threshold and now the requirement of 13 of the units are lowered to 13% a.m.i. levels. we should see mayor breed and all community members thank you for your work.

[applause] yes, this is just a first step. the city and the community still need to work to fight for more housing. they want to use this opportunity to ask everyone to vote yes on prop c in november election. prop c will provide more housing for individuals, families and homeless people. it also helps to create a cleaner city. most importantly, the tax increase suggests will not effect individual or small business because it targets large enterprise that has revenue above $15 million. prop c will adjust the current housing crisis. vote yes on prop c. thank you, so much. >> we have the chinese progressive association.

[applause] thank you, mayor breed. thank you everyone. thank you to c.p.a. for those words. i'm the organizing director at the chinese progressive association here in san francisco. we are an organizing educating and organizing working families, youth, tenants and seniors in san francisco. i think it's fitting that we're marking progress for the struggles for our community to find affordable housing. here in the heart of chinatown, which has such a long legacy of community advocacy and it has led to the types of livable community that we've been able to build here in san francisco and in chinatown. we have a long way to go and we're proud of being part of that legacy. we're also proud members of the chinatown coalition for housing justice. which is a coalition of organizations based here in chinatown that began organizing back in 2015. around the time we really saw

the very impact of gentrification starting to hit chinatown. with s.r.o. rents going up drastically from an average of $600 a month to $1,000 a month. and seeing the influx of developers trying to profit off of the housing that we believe should be preserved for low income seniors and families who are working and providing services to the city of san francisco. when we first learned about this project, we were concerned about the affordability levels. it was part of a whole program of work that was happening at the time. conversations, surveys, forums that were being held in chinatown because of the concerns of the community that, even affordable housing was just far beyond the reach and i appreciate the mayor for naming that. these developments need to be accessible to the community that they're committed to serve and we have to recognize that affordable, for someone who is working a minimum wage job in san francisco, is very different

from affordable for someone working a different income. we have to make sure that housing units are successful to all and we've lost too many already of our working families. our blue collar workers, our immigrant families, too many people have had to mom to antioch and out of the bay area in order to survive. the members of the chinatown coalition for housing justice, we are really happy today to mark this progress. and to show when community partners and developers and the city come together to really think about the solutions and recognize the needs, we can come up with creative solutions to make san francisco a place that all of us can afford to stay. thank you. [applause] thank you. i want to thank you for being here. thank you to all of our partners that are here today. we know that san francisco has a long way to go to address what we know is a serious crisis, as it relates to affordable

housing. and part of my goal, as mayor, is to make sure that we support the surrounding communities, especially as i said, when we build affordable housing and a neighborhood, it's important that we look at who is in that neighborhood and how are we going to make sure that the people who are part of that community that shop in that community, that are part of the fabric of that community, have a real opportunity to maintain their lifestyle in that particular community. that's what this is about. but we have to do more. we have to make sure that we do everything we can to build more housing at different affordability levels because, as we've said before, you know, someone making minimum wage, a family of four, it just varies for each family. we need to make adjustments how we provide housing in san francisco and working together we'll do just that. thank you so much for being here today. [applause]

breed. >> hi. my name is carmen chiu, san francisco's aelectricitied assessor. today, i want to share with you a property tax savings programs for families called proposition 58. prop 58 was passed in 1986 and it was helped parents pass on their lower property tax base to their children. so how does this work?

under california's prop 13 law, the value we use to calculate your property tax is limited to 2% growth peryear. but when ownership changes, prop 13 requires that we reassess properties to market value. if parents want to pass on their home or other property to their children, it would be considered a change in ownership. assuming the market value of your property has gone up, your children, the new owners, would pay taxes starting at that new higher level. that's where prop 58 comes in. prop 58 recognizes the transfer between parents and children so that instead of taxing your children at that new higher level, they get to keep your lower prop 13 value. remember, prop 58 only applies to transfers between parents and children. here's how the law twines an eligible child. a biological child, a step

child, child adopted before the age of 18, and a son-in-law or daughter-in-law. to benefit from this tax saving program, remember, you just have to apply. download the prop 58 form from our website and submit it to our office. now you may ask, is there a cap how much you can pass on. well, first, your principal residence can be excluded. other than that, the total tap of properties that can use this exclusion cannot exceed $1 million. this means for example if you have two other properties, each valued at $500,000, you can exclude both because they both fit under the $1 million cap. now what happens hwhen the totl value you want to pass on exceeds $1 million. let's say you have four properties. three with current taxable value of $300,000 and one at $200,000, totaling $1.1 million in value. assuming that you decide to pass on properties one, two,

and three, we would apply the exclusions on a first come, first served basis. you would deduct properties one, two, and three, and you would still have $100,000 left to pass on. what happens when you pass on the last property? this property, house four, has been existing value of 2 -- has an existing value of $200,000, and its existing property value is actually higher, $700,000. as i said, the value left in your cap is $100,000. when we first figure out your portion, we figure out the portion that can be excluded. we do that by dividing the exclusion value over the assessed value. in this case, it's 50%. this means 50% of the property will remain at its existing value. meanwhile, the rest will be reassessed at market value. so the new taxable value for this property will be 50% of the existing value, which is

200,000, equaling 100,000, plus the portion reassessed to market value, which is 50% times $700,000, in other words, 350,000, with a total coming out to $450,000. a similar program is also available for prepping transfers fl interest r from grandparents to grandchildren. if you're interested in learning more visit our website or