this is the housing authority board special meeting for july 31st. time is 11. . 15 p.m. we'll start with item 2. commissioner pikes. >> present. >> commissioner kim is absent. should be present later. commissioner lindo. >> present. and president torres. >> present. >> thank you. item 3 the ramaytush ohlone community. [ramaytush ohlone land acknowledgment]

>> thank you. item 4 is the president's report. >> thank you we had a wonderful celebration with the plaza east block party this weekend that was supporting by the plaza resident council. to ensure there was a festivities. >> recording in progress. >> we had a lifely plaza east

block party celebration this took place this weekend. with great leadership and support from council, property management with the john stewart comprehend and, of course, all of the attendees who benefited from the bbq. jumping rope with the mayor who attended. great horse and pony rides for kids and jumping house. it was a great event and another signal of the investment we are pay to plaza east in community services and in operational investments we have been discussing for the past couple months. in addition issue commissioners a couple of i want to say it was on -- july 18th of this month, mayor breed together with her lead agency for affordable housing development and investment of and community development, announced that we

will be tapping into the fair cloth program made available by hud to help support 3 thousand, 667 united supported with subsidized housing to preserve, sustain and support new constructed development it is. we'll ask the mayor's office of house to join us at the next meeting to make a presentation. and talk about the leadership role they are playing in alining all the resources that can bring to bear further impacts and benefits to the affordable hougz portfolio that exist that which we seek to create. that will be an opportunity to learn more about the role of the subsidy levels provided throughout housing authority real iegz the affordable housing goals and to understand the leadership council createed help think of new ideas, new strategies and levels of

cordination and aline that can further affordable development in san francisco. we look forward to hearing that presentation next month in august. and with that, i know that this will bring up questions for us around the capacity levels. that we want to investigate as an authority. the american in which we want to see that capacity increased with all the partners we have to support the stabilization of affordable housing. look forward to those conversations. commissioners, i will take it become to you. thank you. >> thank you, president. item 5 is general public comment. this portion is not debate or discussion with the commission or staff. state your business. it is not appropriate for commissioner to debate over issues not set in a public noticed agenda. and if you have questions or bring a matter to attention e mail to sfha public comment.

is there anyone in the room or on line that would like to give general public comment? i don't see handses. close general public comment. item 6 representative report for council. senior disabled or the public caution tenant association. anyone from ccfc that would like to present to the board today? i don't see any. open public comment for item 6? public comment is closed on 6 and item 7 with the chief executive officer's report. we have colleagues from first pick inc. who will present to the board today.

>> so, i believe the ceo wants to begin first. >> sounds good. >> good morning. i'm tonya lediju i'm the ceo of the housing authority for the city of san francisco. and i'm choosing to come down and face the board this morning as we talk about the transformation of the housing authority and where we have been and where we are going. >> i like to talk about the progress that has been made toward accomplishing the transification, restructuring

and the transformation of our housing authority in 2017, and my role as the city auditor in the controller's office with the team i conducted an assessment of the financial structure. management, control, control systems and staffing and provide recommendations for correction of organizational weaknesses. in 2019, shortly thereafter the u.s. department of husbanding and urban development quality assurance division conducted a financial management review and management operation's review. the 2019 report in issuance of hud's march 7, 2019 letter. finding the authority was in breech of contracts with hud for section 8 and public housing programs along with the fact the housing authority was in short fall. >> and so -- as i came on

board, as a city employee, to help realize the large are goals of the city as it relates to housing, we were in an mou and determining how we could cure the default. for the authority. and -- what the city had agreed to was to become an over site body of the housing authority. and that the mou would also help with out sourcing would help provide needed resource as we went forward in the transformation of the work. >> so, what we began to do is implement all correct ever actions that were identified in the hud 2019qud report. and i like to say we have largely actually resolved the

findings with a couple that are more long are term that we are still working on as it relates to the full transformation of the housing authority. the housing authority has been received technical assistance from hud consultants who are here today. to assist authority in the ability to reach the completion of the transformation of the restructuring of all of our assets. and real iegz the goal of the housing authority become an asset manager versus one who is responsible for property management. so we continue down that roads. and the city full filled the assumptions of the authority's financial functions of the program and the public housing program by appointing me as the transition team lead and later as the coe of the authority. and as the city employee, it is

really essential i'm wearing two hat its has been a privilege of helping the city realize the larger goals of the affordable housing side at the same time, working diligently each day with the authority and all of our staff and contractors to ensure we fulfill the requirements and roles and responsibilities as mandated by our fundser, hud. and as we continue to move forward in this work one of the great things the city did when i came on, we had a transition team. part of that transition team brought financial resource, meaning individualings who were financial comp tent in doing financial statements understanding financial transactions and the work need in the putting control in our system so that we could be stable as a housing

organization. and as you know, our cfo presented before the board many times around the different controls that have been put in place. we have seen the value of that work. by where the housing authority sits today in its ability to understand where it is at any given time from a financial perspective. >> one of the things that as we have done all of this work and when we realize is that there are growing, transition, transformation pains we have experienced. our strides continue to be strong and moving forward in this work. some things i would like to share the past year an increase of volume of financial transactions. required close out of 4 public

housing asset manager programs and city grants used to complete the rehab of 650 units. costing 16 million result in the unsuburban volume of transactions during year end close out for fiscal twoochl then the min layoffs. of 90 staff during fiscal 22. which have a direct impact on the finance department's ability to complete the financial closing entries year in reconciliations and this added financial transaction in our fiscal year 12 then pandemic impacts. pandemic had an impact on the authority and the entire nation in 2021-22. greatly impacting our

communities. during this period, the authority with other city departments provided services to our under served communities in san francisco. that enhanced safety, food sustainability. internet access and addressed other needs. which placed stress on the resources and operations of the authority. because we were doing all of this work to ensure our residents along with all residents in thes city and county of san francisco were stable during an unstable time. the pandemic. >> authority neighborhood the emergency housing voucher program where the harris/biden administration provide emergency housing vouchers to all housing authorities across the nation to help during the pandemic, ensure to best abilities that individuals remain houses.

individuals who potential 32 kenot have a place to stay were able to utilize some vouchersch so, we addressed individual lean unhoused in collaboration with continuium care in the homeless department mandated by hud added extra responsibilities when we were stretched with resource. so. as it related to our work and the increase the upon 70% increase in min transactions, with the assistance from our external financial consultant. authority's finance team worked to complete the financial closing processes. and provide an updated financial schedule to odd tors as corrected entries were identifyd and processed but timeliness was impacted.

s and this work that i speak about as it relates to submitting needed change in our financial schedule system no different than what we do every year. the increase of transactions by 70% really stretched us far greater than what our capacity was. with all of the mandates and unforeseeable circumstances and ambitious housing conversions throughout conversion of sunny sdpael potrero and transitioning to a new role as contract managers and also losing resources in the form of the layoff of authority, staff to transition the administration of the programs to the third party contractors; all this was happening at the same time. with that there have been growing pains as we move forward to commroeth the agency. with that said, i like to

discuss how this affected hud's assessment prosecute of the authority for our fiscal year 22. the public housing assessment system which is known as hud scoring system upon they use it for the annual assessment of public housing authority's across the nation. the scores public housing assessment system, is based on 4 areas. one is physical condition. financial condition. management operations and the capitol fund program. and includes 3 designations. high performer. which is 90 points and above am standard performer, between 60 and 90 points and troubled is less than 60 points. this designation is done on the

public housing structures. and that world. on may 17th, 2024, hud sent authority notice that it scored 55 points on for fiscal 2022, the challenge this is lead to the fiscal year 22 designation as i described they are not as severe as those that lead to the authority's 2019 default and troubled status. in other words, what i'm stating is that there is no material impact to the finances of the housing authority. there is no material impact to our residentses that we serve and to the leasing plan we have brought before this board for 2023. we will continue to with our leasing plan of issuing over a thousand housing choice vouchers and issuing over 700 project

based vouchers. we'll continue that work there is no material impact to any of our developers. we will continue our relationships with our developers and continue to receive our subsidy as committed by hud and will pay our subsidies as required by our contracts. so the issues that lead again to the fy22 score and designation is not material. and the authority makes steady progress in conversions from public housing to the voucher system and proactively forecasting itself to make significant impact and augmented [inaudible] rent in an ambitious project in collaboration with the city and our partners.

we are xat body that work. again, it is real iegz the large are housing goals and affordable housing goals of the city and county of san francisco for our residents the city san francisco housing authority remains financially stable and able to participate in this work as intended. in the may 17th letter. our authority letter and from hud acknowledged this its local office are hud local office does not expect that the operations will be impacted. and that this is a temporary designation. so for 2023, which will come out in october/november in the last quarter of the year, we expect a

designation of standard. hud also concluded the current prosecute jections indicate again that likely to be a standard performer for 2023 score and how do we know that is buzz as i talked about increase of 70% for officials the transactions exited friday sunnydale and potrero and the many things that happened during the pandemic and the many expenditures on that we incured. and we are back if youingly to our normal stabilization with what we consider normal transactions for ph a of this size. additionally, more important low for our 2023 we have submitted our financial statement by the

designated time of june 30. we have met those requirements that have created this conditional i'd like to say my

goals as the ceo is that the housing authority that we run that this agency has the best housing choice vouch are program in california and in the nation. and hud has provide again the

expertise to do this. by providing the consult apts that are working with us today. and we are also moving forward with the fair class to rad with the city which is fundsamential and meeting the large are goals of the city. with that, i'm going to introduce our first pick consultant. before i do that, i want to reminds the board because i thank you is really important. where i came before you a couple months ago regarding plaza east, which we now have two public housing developments. east and north beach. we are doing a significant amount of work in that development. we have beyond the annual subsidy, we are adding 9.2

million dollars along with the city to which plaza east to condition moving it forward and stabilizing plaza east and then for year 2024, which we the housing authority will soon be moving into, we'll add an additional more than 1 million dollars along with continuing to ensure we pay the insurance exspends tours to the funds are not used from the 2.2 million dollars. as we know and as i shared, insurance has sky rocketed across the nation. our insurance bill for plaza is quite hefty. and so again to minimize the impact on the operations of plaza, the authority is also going to continue to pay those bills for insurance.

along with that, as i share in our leasing plan we are adding 60 million dollars in vouchers for this year along with adding another 477 million dollars of subsidy for -- project based vouchers. overnight last 3 years if 2021 including when we'll do in this calendar year, we have over 4 half, we have over 800 million dollars if we project that out for 20 years 804 million dollars over 20 years for that which we -- are paying for today. for hap contract we have over 750 million dollars over 20 years for the last 3 years

including what we projected for this year. i say that you will to say that we are healthy. we take our ding designation sxeers move forward and -- the great news about the work that we aring doing and the designation is we don't have a material impact. as we had saw in 2019. i'd like to turn overand ask if we allow first pick to present and then ask questions of all of us that you might have. thank you.

pleasure to be here and honor, frankly. the transformation that tonya talked about is epic. in the world of public housing the reason why i say this is because i had [inaudible] to say that. i started with the department in 1987. in 88 the congress issued a report the national commission on distressed public housing a watershed moment for the dmpt admitting that our portfolio of 1.2 million units a portion was distressed. under main tained. under managed. . something had to happen to fix that evolution of the public housing program from 1937 to 88. that was hope 6. you as the board than you are the recipient of a hope 6 grant

for north beach and plaza. and if north beach is an example of a true transformation i went back after 25 years and was impressed by the way this property was managed and up kept over the last 25 years. that's the [inaudible]. so, my time at hud was the hope 6 director and then the deputy assistand secretary for all of hud's public housing and voucher programs before i retired. i'm fascinated by what happened here in san francisco because you have taken a significant step on transform your portfolio. we my partner david and i, have come here to be a touch stone to our own careers to see this transformation complete. in a way that it was hopefully designed to be done as part of

hope 6. i remember henry cisneros was secretary of hud at time. me went to the meeting with the first 20 agencies and offered them a suggestion. he said if huit to do over again would you dot same thing?

we would use develop and private property managers and over see their work that is part of the transformation that you are in now. and unfortunately tonya mentioned, things that have become troublesome you guys weathered that storm of now it is time to finish off the transformation. so the transformation dave and i had i were here for two weeks and it will need partnership between the housing authority, developers and the city. so, one of the things we will help tonya with and the board to

talk about how to distribute the new resource in ways that strengthen the over sight section 8 program. right? because what was here 20 years ago, public housing is now project based section 8. mechanisms for rung the two programs are different. it will require transformation of the administrative aspects how the housing authority does its job temperature is not easy. it is complicated. of there are, lot of moving parts that is where gave dave and i had i can help. so i was voted as one of the 50 most important people at hud in the first 50 years. only because in my view we thought outside the box. we gave latitude to housing authority who is had been this this stricter under funds world. for over 60 years.

i got example in my career of successful transformations atlanta took 12,000 unit in 1988 and converted to 14 upon,000 units of privately owned section 8. they transformed the process internal low to be play that new role chshgs is over site role we will are here gratifyed be here because it will help my own career after 35 years with hud. in the history of the public housing begin nothing 19 upon 37 to the day. this period of history will mark something significant.

look at the way public housing evolved this will be a significant moment in the history of the program and san francisco will be a positive part of that. i will turn it over to dave toyed talk about the details. good morning. board president and commissioners. a pleasure to be here. i'm dave former secretary for the assessment center. i spent 30 glorious federal government now retired. 24 years in both public housing and the programs. in addition to responses to the disasters. there are some things that get lost in the shuffle.

my background is in financial management. i'm licensed [inaudible]. i am a former tenant. i understand the importance of the programs. how it helps families in times of need. this is critical for me as i worked through my careers and asked to come here to work with you. this housing agency is for a billion dollars entity. that's like s & p500 company this is huge endeavour you manage as a board. the expertise required is tremendous.

something strong working on your behalf. we are here on behalf hud field office they pay and asked you to come in and help. we near contact with former colleagues at the field office in terms of when we are here to do. i want to talk about a couple things the very first is this issue with the financial reporting to hud. ghee all of that 25 years ago i want to explain why that is. the way that letter reads if you don't see your financial

statements in the federal government's requirement. a late filature if you can't do this nothing else matters. that happen in the 2022. not that your properties did not pass muster because they dom it is the fact that the financial statements were not submitted within 9 months. make sure submitted the

financial statements and they did. submitted the financial statement it is by 6:30. that problem has been cured that failure has been cured you will not see that or should not in 2024 for the 23 score. i want to read the language. hud said the san francisco office of public housing does not expect that the operations will be impacted by the temporary trouble designation. indicate that likely 23 score.

and just keep going here. important to say your development deals and completion are not impacted by a destination for 22 that will go away shortly and the issues is scores and sfaft there has been new inspections your plaza east property improved based on funding that you provided to improve the property. from 42 in 2022 to a 59 in 23. upper close to the property pagsz. north beach as much really nice property. it brings update score above. you are good and that will be 80% of the score.

it is safe to say it is on target in terms of assessment. second thing i want to convey this is important. inner conversation for the field office there are a couple of concerns i want us to keep an eye of they said the authority in the city invested funds of plaza east for maintenance and repair it is the understanding the authority will invest 5 million in the city additional two to plaza east need this is should have an impact on the authority inspection scores of plaza each past of our visit we did an assessment and the

technical assistand needs and came up with a plan. we -- spoke to the contractors there. we did believe something 13 site visits. a couple we toured the property in there. talked to the housing authority finance people and operation's people. and reviewed our conclusions there in there, we talked to the field office one thing they were concerned about, one, making sure the sunny valley transformation gets done. they were making sure that approval from the special center, given permission in providing amount of section 8 vouch are funding.

second thing they want us to pay attention to is the second report that they did on sunny sxrael potrero they had findings 125 they pulled we have a detailed plan to get past that working with housing agency and it is contractors that do that. going back to plaza east. your auditor report i don't know if you have it i assume? 23 it is a growing concern when an auditor tell us it is i concern than i say the way things are going now this may not continue unless you make changes to the operations of

the. property. when i locked at financial statements for plaza east a couple things came out. there is no reserves. in real estate you have your collect the rent. pay expenses and save a little rainy funds for the future there is no rainy fund in plaza east that is a prp problem. the money you get from hud and the rent. i made certain this was not a large portion i was you know -- making 5.15 an hour at the time with a wife and child. so but you pay what the lovelies you make that collection between the two you can make the

property work if you mean don't collect part of that the rents from the tenants you start getting in serious trouble. ability to collect rent and enforce the lease is critical to the success of the programs. we will do work on plaza east in terms of the potential ways to improve that score in the finances and things of this nature. it will require assistance from the board and the city in terms of the enforcement. one of the properties we locked at 1101 connecticut a 3 year old property. you know that is a new property. now the housing agency provides vouchers but not the on site daily operators of the property. after 3 years you start seeing

some above and beyond i will call it depreciation of the property. in other words it is -- what will happen in 7-10 years if you not able to do what you need to do. so that will be very operational will be critical. to maintain that in any other property you bring in, right? the other thing we did in addition to the sunny valley component is the special application center piece was the expanded program over site. the housing authority has a good contractual framework for the section 8 program. but needs additional or needs some expansion for that oversight. when i talk about expansion we develop a plan allow the agency to do the quality assurance

quality control overnight two vendors as it relate tos the files they put together. going back to the needs of the agency, impacts the financial condition of the properties. it prevents or helps with damage. unit is damaged and you are able to enforce the components of the lease, you are able to minimize the damage. as an impact because the less

the properties are allowed to lease enforcement the more cherry pick of tenants. if you for example sent 100 tenants to the properties for whatever you know 50 or 60 units you have and they -- toendz pick when they want rather than follow the housing authorities plan. so where as say we will not look at credit reports. it is if you are not able to enforce loses they i seen this nationwide not just here. they just try to cherry pick and follow your rules. and the third impact on section 8 score figure you don't collect rent or enforce leases [inaudible] will suffer. that's the extent of my comments

here and i will turn it back to doctor lediju in case there are questions. >> i have one. when you speak about plaza east and the reserves. okay, normally they have reserves all of the sudden they don't have reserves, which puts them in a bad space. why is it due to tenant's all the tenants not paying rent? how come there is in reserves? i don't understand. you usually have reserves now you don't have reserves why is that? not paying rent or -- from when i saw there was a lot of uncollected rent. on financials and i can tell you if the property is not maintained if the design of the property is not adequate and in this property, the design of property is part of why you have low scores you can't access

[inaudible] the backyards of the units. there are issues with the plumb nothing that property. that nksz your maintenance costs. you have revenues down and expense going up those reserves disappear they are utilized. >> due to maintenance. >> yes. >> okay. any additional questions? anything to clarify for anyone. >> what i want to thank you both for being present today. and proproviding the perspective and national perspective on positioning of the san francisco housing authority. one element that we discussed in our briefings -- as well as around the nature of partnership that is necessary.

nature of courtination that is necessary not only with the city but with our affordable housing partners. when we look at the fortfoal i don't at large, it would be wonderful to hear anything further or findings you may share now or the future how they can continue to strength thaen partnership with the providers in terms of payments and system and engage am we have with partners. we have talked about that. in addition to the concerns raised as we have had transitions and bumps along the way. shifting responsibilities among contractors. capacity issues. among contractors and seeing where we as an authority can lean in further. the partnership approach and aline am with the city's one

city approach for pursheur suing investment and strategies. that help us do so much you mentioned, we are working on two combrms the transformation we seek to complete for the authority. and as you mentioned it is quite an epic achieve that lediju has been pursuing. i'm having to snep more fuely post default issue.

all the tools can be relied on as a city and that includes the housing authority and resources and partnerships this brings to bear to ensure we work with each other and realizing a st. john's impacts for our individual properties and the partners manage them on a daily basis. from your nodding heads sounds like both reinforcing the comments you have made and claire fighting the direction we need to continue moving in. again, that support and partnership helping us identify how to strengthen update partnerships today will be of strong interests to me and i continue has been coming up in

conversations we had as a commission and also seeing how we further the investment it is in ways. plaza east an example. conversations we have with the city around not only is the housing authority bring new investment dollars to bear alcohol be awarded future date for plaza east and the city itself with its departments making investments like the one i mentioned the top of the meeting something like building community investing in community and show willing is city support for what is seen a forgotten neighborhood or public housing site. and our instengz this is in the the narrative. this is in the the experience. of tenants at any of our properties. so i think well is an alignment opportunity for you to make sure we can take a leadership to position inment spectacle the

city lead and coordinate nothing is falling through the cracks as we continue this transition to a one city approach. up until the hope 6 program was envisioned housing authorities were an island to themselves. the city did not view it as their responsibility. federal government said this is your city. you need to take responsibility. and until the hope 6 said, this new transformation will involve relationships. relationships with developers, city, tenant. all these players typically had not been part of the world. but we ush erred in that. the responsibility of a housing authority today in your position is about partnerships the better

partners the better management better you will be in the long run. so it important the relationships matter here. they matter in the city and to the housing authority but i want to say from my experience what is important is putting the housing authority as the center of the activity. remember. the housing authority owns the land. our original hope 6 deals fraught with a lot of concern about selling off public housing. our answer to that was do a long-term land lease and take advantage of tax credits that developers use to dot transformation or redevelopment and lease the land.

>> we talked about this reasonable that our conversations with hud in pursuit rad was leadership of the city under ed lee with strong support from mayor breed to ensure the director of housing at the time lee was driving that conversation and we were all coordinated as one body to hospital goal of realizing the rad transformation that supported 3,000 units. and moving in the new partnership.

absolutely. it is delicate balance and tension held for all of you to move in the same direction. i think i believe we are in alignment with that conversation in terms where we want to go as a city of san francisco. and drawing on resources we broing it bear to support the tenants and putting them first in our conversations. >> any additional comments from lediju or commissioners here? i want to say, thank you to the office. to hud. for make you available. your experience and history and involve am in the programs has been relevant for us. so we can see the layers of detail necessary to be ash tuned to which we know what is a concern. you mentiond and what is not a concern that has been resolved so we focus on the other issues that we need to tackle.

just a big thank you to the 2 of you making serious time with us. anything further from you to close. thank you again. i relish the opportunity to have seasoned, mature, professionals retired and have been the short time we have been together, very valuable and i look forward to the continued work with them and helping us continue the transformation as designed. many years ago before i came on board. i'd like to thank the board again for all the support that you have given me over the last 5 years, this team. and definitely the work is not over and i said this many, many times failure is not an option.

that the transformation will be completed. and we will be that one of those tools our city can use to ensure that individuals have an opportunity to be houses affordable. i know how important it is. that is one of the reasons why i upon committed to stay at the on set to dot work. i realized how important it is. and i -- still holds that and i stand in that. even when the time still rests because transition and transformation does not happen over night and there are times that gets messy. but we do together have the fortitude to walk and realize the end goal set out in the organization. i want to thank you my staff who is a small staff you are mighty.

our commitey meeting we'll bring to the board next month an ask as it relate tos our information of, technology infrastructure. it is time that we bring our infrastructure update so that we don't clash and we can dot work we need do. we will be talking about that more in depth. we set aside fundses to do so much staff are getting all the quotes we need so we w can move forward and we are working with the city especially on resource around it that is center of the w we use to keep our work moving and gchlg i thank you for your support. i thank you for your council.

and i thank you for helping us move forward. thank you. >> thank you. and thank you again to the specialists who joined sdpus reenforcing long-term affordability with the ground leases having to reenforce that through rad was a calming fact that helped us mule through the process and investment to the city put in to the properties. under hope sf now individual properties. both in terms of time, energy and finance has been a strong arguments we seek to have a hud work with us to facilitate strong afford okay housing goals. thank you very much. >> what is our next y. noted american kim's arrival. >> for the record commissioner kim in attendance at 12 p.m. and the next item is 7 the financial

report. presented by our senior budget analyst. and sf goff we need a power point for this. thank you >> good afternoon. commissioners. >> i'm here to discuss our financials. [inaudible] for the housing authority. today i will cover the 9 months ending june 30. 2024. and at this stage my focus will mainly be on the year end forecast column for each programs. stark with the housing choice voucher program. the admin subsidy revenue. wases in line. with the budget of we were insure by 150,000. the reason for that is the. we will continue to get

[inaudible] from hud. for the [inaudible] park discount of the year and those numbers will cover short fall you will see now. but it is too hard to forecast that. when we did include in the forecast and updated it when it came to this we did update the new admin rate that were published a 3% increase. and increased the operation that went from 89 and a half % we included in the forecast p. up to 91%. taking that in consideration the yeesh end forecast for admin fee revenue increased by 600,000.

i will move to operating expense. on the operating expense front, as tonya talked about, we have budgeted for the infrastructure upgrade now we have budgeted about upon 1.5 million. that allocate across housing choice voucher. we anticipate that the increase in allocation will be about 300,000. moving on to emergency housing

voucher. as you see we did the same thing where we increased the admin 3 rate 3% for each of the leases that went on to the emergency housing voucher. plus increased the forecast we had for the emergency housing vouchers for the remarndz of the year. that lead to an increase of about 190,000. the admin fee subsidy fee revenue we got from hud. >> on the expense front, obviously the expense increase in the admin fee revenue. and those increases in the and [inaudible] expense are in the cocc [inaudible] revenue. it is a wash. but other than that, the expenses are in line with what

we forecasted. this were approved budget. moving on to the central office call center. the revenue is what i talk bodies increase in fee expenses. now capped in the revenue. and so that [inaudible] fee revenue. the expense increase by 267,000 the revenue by 267,000. we have an increase there. most of the approved budget there is ancillary revenue.

on the expense front. compensation -- will decline. as relate said the employees and increases come to fruition. again, we talked about the infrastructure spend. that anticipateed go up. what we had budgeted. included in the forecast. our next slide will cover the hope 6 program. this is the property for plaza east and north beach. again on this front, the subsidies this we get from hud is transferred to the properties for them to cover the expense. there is an additional 730,000 we gave them last we're. specific low to cover expenses that were on the apa team.

report. we gave them monies to cover for the insurance costs. so far for q1 and 2 given them 400,000 to cover for insurance. for plaza east. next is public housing. on the public hughesing is machine theis set aside to pay off the pension liability and with draw that money as expense in due. we talk about the investment program fweel to greater detail. >> a quick pause what is the outstanding exposure we have around the pension payments we

have to make? >> there are two on pension liability for the [inaudible] people what we have been talking to 14 million as of 9. . 30. keep inspect mind we values and have not discuss third degree a pension liability for the current employees. of right that number is 234 million. >> next is the mod rehab program. what you see is what you get. sorry. same as the next mainstream. the revenues and expense are very sporadic. >> following that great

comment, hi a question for you. thank you for the presentation and i had a chance, thank you for giving me a copy of talk points i reviewed them. and will inform more detail in a bit. so this is a long question. and i'm trying to piece things together you talked about increase to the admin fee. >> correct. >> i understand that there have been a lot of significant changes to the housing authority overnight last several years, which is really have been, been necessary and has been a lot of great work that has been done. and part of that and included in they know there have been pivot and a necessary reduction in staffing.

so. is there a connection between the addition of admin fee? with the ability. when we talk about having resources to be able to have understanding of -- housing authority at our policy level? will those admin fees go towards -- providing more of the foundational -- structure needed? when you talk about staffing for instance, people can work hard, really long for periods of time that is not sustainable to be

able to ask female work in that manner and so -- there are many ways to address that. there are ways to address tech logically and policy changes. and procedure changes and other components. will the admin fee go toward that or is that a different fitted or way to build a foundation? >> to answer your over all question. yes. the admin fee that we get which is through the increase we talked about will cover the expense for each the programs. of different programs when we are going to deliver is more operational efficiency across the board in finance. in finance we taking on we lost people in finance due to

reduction and cost am so we looked at stream lining operations. to over come. the deficits. the majority of the reduction and i will let tonya speak to this. >> thank you. commissioner kim for that question. acknowledge so some of the fees can increase staffing and then some of the fees end up on the contractor side as well. tell be a conversation weville in legal about what where are

the fees going? and so forth. because some of the fees are also connected to our contractors work.

yes. one of the tasks one of the thirpgs that will be happening with first kick is when you are talking about. is having enough staffing adding additional staffing. they were talking about this today without me as we prepared for this meeting. not to give me an additional thing to about that is one recommendation. we do know we need to strengthen our ability to do contract monitoring you are right that is the goals that we endover meet as we continue to work with first pick and train staff to understand how to do that effective and efficient low. and it was the w this we originally started out doing when we came but we really need to have enough staff to do that. strengthen our ain't to do it.

have the upon appropriate training and that work will be durnd their leadership with us. >> thank you. upon one more comment to this. just in consideration of my earlier comments, when it come to making new resource allocations, we still need tong about in if the context of what does a one 73 approach look like? where dot resource make the most sense to be allocated. that is an outstanding question we have to delve into. >> okay and i think our last slide is the summary of all the different programs we ran. and -- you know keep in mind this slide is misleading because i want to make sure the monies

we have are restricted to the programs. can only be spent on those programs it is in the a free for all. >> this is a final slide. >> yes >> just in relationship to vouch are management and vouch are budget allocations and authority we have, i know this some new questions will be raised based on conversations around upon a funding resource to rad and other developments. when and how will we see or have i discussion about the allocations, those available budgets for us. will we do this in cordination with the mayor's office of house something will we have a presentation here on that budget as we get clarity on that? is it happening soon within a quarter or two? i'm curious about that. >> so, for [inaudible] to rad

it is designated based on discussions it is a 10 year plan for the 3667 units what we have been doing on staff and joe does that work, we are forecasting and working along with hud in our budget tool. a two year budget tool so we see out two years what the budget look like and it is an estimation. we are working with hud the team we work with in projecting out potential low what will our reserves be year over year?

one thing i like it protect is not getting in the position where we have a wait list and people on their for many years. and so we have to end the fair [inaudible] to rad portfolio and bring those rad rents to a project based voucher rent which is a higher subsidy and have to kwlar is happening on the housing choice vouch are side. the choice to take your section 8 vouch and live in free market. we need have a balanced with what the mission and vision of the funds. we will be looking at how do we do that effectively and efficient low. as we partner with moc hd to determine how much units potentially are in the pipeline that can be brought on at any given time and able to project out what does this electric like

on the funding side. what we are anticipating and project nothing that two-year period? and i think we all understand that -- those additional fundses that end up being reserves, are also upon what hud's budget looks like and the federal budget as well. we have been begin reserves based on a conciliation. i'm sure daved can talk more later temperature is a peculiar calculation and we don't have a say in that calculation. but have been fortunate and we have been coming to you for you the last 3 years. with a leasing plan and executing on this plan.

an update on the investment. thank you for allowing you to take our excess funds part was to take the excess funds and come up with a strategy how to cover linocaines zee. for the employees and management team. we are behind the koufsh this. so we have taken baby steps. the purpose is obviously goal one was to get enough to pave the pension funds liability from

the excess funds. and again the next slide, you know as we been the excess funds, these are objectives. capitol [inaudible]. and [inaudible]. we can skip we talked about when we made the victim policy we would come to you quarter low. to be able to report to you on where we stand at every quarter. keep nothing mind that idea of sustainable investments that dictated by sxhud what we investment and keeping in mind objective of preservation.

and we had greater by the u.s. treasure. and to date, if you go to the next slide, we had excess funds in capitol reserves of about 5.6 million dollars we did invest in and we are getting 5%. [inaudible]. some point and on the next slide we took to the public housing reserve. and invested those funds in the same. right. but you know as time come on we have to take a strategy and invest in treasuries. i'm not happy with the rate we get from the bank.

this is item 7 c the chief communication which was tied with item 7 a. we will the floor is yours. >> i apologize. i don't believe i answer your question we am bring a presentation around financing part of it with moc hd come if we need do it before we can do that. testimony may not be robust and baked but definitely. >> yea. >> on going process.

>> that sounds great. to set the table, in july 18th announcement of the pursuit of [inaudible] subsidies. would be good we are having the conversations about one city prop and grounding ourselves in what that looks like. may be wonder to feel have ocd present together with the housing authority on that plan. and providing the context around the leadership council sxrmdations. pursuing goals so we are thinking through every element of our partnerships. >> okay. >> and then as we continue our journey with first pick, i think this was said, we will they will also meet with developers and will meet with city partners. so -- we can continue to refine

our processes. there are things we are working on when we did our last wait list. we are an agency with over 200 wait lists for our rad cites like no other in the nation and really creates a burden in doing the work and forward. and deleasting the wait scompls keeping it fresh. it creates a lot of administrative w we realliment to get and lean on. we were able to -- combine some of the wait list but have not been able to do that in entirety.

we have to take into consideration the different requirements or preferences a senior disabled site making sure we have wait lists that deal with that population. we are collapse being wait lists. an opportunity individual having an opportunity to be housed because we were not careful in the collapsing of wait list, it is work in progress but takes time to get that work done and balance that work that is needed.

we will consolidate and stream lining more of our work. >> so. that's all i have for today. >> when do you think, that's it. >> when do you think we will have a more substantive presentation on status of weight list and shifting of weight list policy >> as upon first pick layout a plan of we have a general plan and will do a more in depth plan and come and talk about the plan. so then as we make progress we

unfold. we came before and you talked about this portion of the plan. here are where we are and the things this we are doing and so forth and have a dialogue around each the steps. i continue is important. and tell also help us facilitate, strengthening our relationships with developers as well. it is important. >> in regards to relationships with our housing partners and developers. when you come become and report on that an update. will you provide a sense of where the needs are from our partners. . s one again, our goal is with first pick working with us to have those deeper conversations. with our developers. and also taking the time to crosswalk what is happening

within each program and where are the gaps? where are changes we need to make. what are things that also we are asking the developers can we make a shift here? that would help us be stronger here? as they are asking you to do shifting as well. there are thing in our last in this current calendar year, we have agreed to allow the developers to do self referrals for -- sro's. house quickly as possible and do

it that includes the item for 7 is there any public comment?

close public commentful 8 the committee report. commissioner lindo would you like to report if the july 15th meeting? >> we held a meeting this was a short meeting. did a presentation on the finances. and we had one action item that was pulled. because one of the hap recipients asked to be pulled. so, we pull today and will address it later. >> thank you for the commissioner. public comment. item 9 consent. one for the minutes from the left meeting on june 20th. any commissioner comments on minutes?

commissioner pikes, for the consent agenda for minutes. yes. >> yes. >> thank you. >> commissioner lindo. >> yes >> torres >> yes >> item 10. action items we have one today this is item 10 on the agenda resolution approving and authorizing the ceo in a housing assistant payment contract with mercy housing for star view total 13 project vouchers and this will be presented by our housing operation's director. >> good afternoon. kendra crawford housing operation's director. at the meeting we did have this come in for with two projects.

we have been working with mercy housing and so we have amended this staff report and resolution who won bill's project and come to you later date with the other project. so this staff resolution is approving and authorizing the chief executive office a housing agreement assistance payment contract with mercy housing and california for star view court for 13 project based vouchers. star view court is on treasure island at 78 gaston street. and so in collaboration with mercy housing california, the san francisco mayor's office of housing and community development and the san francisco human service agency the authority identified a potential building received and currently receiving an award of federal, state or local funding to project based 13 units with the authority housing choice

vouch are plan this site is the family site. the average rent 2400 dollars. annually the hap payment for building will be 374 thousand dollars. and this will be a 20 year hap contract. tell pay approximately 7.5 million dollars. so. mercy housing california seeks 13 project based vouchers the authority seeks to approve upon approval from this commission. any questions? >> commissioners, questions on the item? >> nobody >> all right. >> thank you. >> thank you. >> thank you. open for public comment, 10a? >> i don't see any. close public comment is a motion for approval. and a second. >> commissioner pikes. >> yes. >> commissioner kim

>> yes. >> commissioner lindo. >> president soreys. >> item upon 11 additional comments. i want to r that we have been notified that the long time executive director of mercy housing we have been working with doug shoemaker resigning after 13 years. item 12 for adjourn am >> move to adjourn >> thank you. time it is 12. . opinion. thank you. >> thank you. television.

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>> shared spaces have transformed san francisco's adjacent sidewalks, local business communities are more resilient and their neighborhood centers are more vibrant and mildly. sidewalks and parking lanes can be used for outdoor seating, dining, merchandising, and other community activities. we're counting on operators of shared spaces to ensure their sites are safe and accessible for all. people with disabilities enjoy all types of spaces. please provide at least 8 feet of open uninterrupted sidewalk so everyone can get through. sidewalk diverter let those who have low vision navigate through dining and other activity areas on the sidewalk. these devices are

rectangular planters or boxes that are placed on the sidewalk at the ends of each shared space and need to be at least 12 inches wide and 24 inches long and 30 inches tall. they can be on wheels to make it easy to bring in and out at the start and the end of each day. but during business hours, they should be stationary and secure. please provide at least one wheelchair accessible dining table in your shared space so the disability people can patronize your business. to ensure that wheelchair users can get to the wheelchair accessible area in the park area, provide an adequate ramp or parklet ramps are even with the curb. nobody wants to trip or get stuck. cable covers or cable ramps can create tripping

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a session. i call for any speakers on the closed session items listed on the agenda. there will be a total of five minutes for speakers. are there any speakers for public comment? we have no in-person speakers, but i am going to make the announcement for our virtual participants for our virtual participants. if you would like to give public comment on any of the closed session items, now is the time to raise your hand. seeing no hands raised. thank yo