understand the needs are dire, but i like to have a the controller office to address that. >> good afternoon chair chan. devon mccally, controller city wide budget manager. as you are aware the controller audit team adhere to robust and strict process for auditing and reporting which in this case involved a report issued in april of which i had 9 recommendations. those 9 recommendations currently are open. there is follow up conversations and questions. those responses from the department are due today to the audit team. when those responses are received, the auditors will review that and make status determination on each of those 9 recommendations. this will be followed by a report that will be issued standard report in this case issued by february on the status. >> i see, so we will not be receiving the report until february?

>> it may happen earlier, but part of the standard process is by february the follow-up will be completed. >> thank you. at this moment, we do not have a alternative to this? >> good afternoon. gigi whitley, chief of finance and administrator for homelessness and supportive services. we do not have immediate provider that is willing, able and staffed up to step in, but i have been personally with the chief deputy of our department along with my colleagues from mohcd and members of the city service administrator from the controller office meeting every other week with [indiscernible] jackson here today and her extraordinary new leadership team and

we are very confident that they continue to demonstrate progress and are working closely with the city and do not want this ongoing work to impact the vital services delivered at the site. happy to talk more about the ongoing work, but do just want to clarify the controller's office is in those meetings, the audit team is not. >> i'm only laying this out at this moment. it is my goal frankly all most all items all three 3 it is my dpole to work out solutions and can we move forward. this is the last budget and finance committee meeting of the year and we are likely to have another one till earlier of the year closer to february, and so it really-i want to had make sure we can continue to make progress and move for ward, but if we won't have an audit result until february

and report, this is expiring june 2025. we are asking to extend to december 31, 2025, which i'm inclined to entertain. the extension that 6 months. i'm not saying i'm not in support of it, but will it be possible if we were to continue it to february have a schedule then and have that conversation, we will have a audit report. the board can be in a position where home rise as a organization is on the record that is now have resolve all the elevated concern and that we can again, contemplate the 6 months officially contemplate the 6 month extension in february? >> chair chan, can i address that? >> please. >> there isn't a audit report coming out from the controller office. every 6 month any audit they issued they provide an update. we the department along with

mohcd are responsible providing the updates. those updates are due to the controller today, but also all in my notes and prepared to talk to you about. so, it is really a self--reporting to the controller's office of the status of what the departments are doing to monitor those agreements. not a new audit, not a update to the audit, everything that is covered in this updates both jackie my colleagues and mochd and i are prepared to walk through you today. we cannot wait to extend the agreement. it is running out of time and funds and we feel that holding this one particular program in obeyance when we are making progress with the organization is not the best approach for the city. so, we are happy to walk through in detail what we are doing, all

the extra time and consulting work, we have been providing to this organization everything they put into place. a leadership team, financial policy, new cost allocation methodology that we feel confident we can at least get them through this one year extension. the updates the controller will provide some time in february we are prepared to provide those now. >> it is 6 month extension? not one year. >> one year from today. >> yes, thank you. but technically on paper 6 months. >> six months. >> yes, i do want to walk us through greater detail but will call on vice chair mandelman. >> has the board had a hearing on home rise? >> i think in public safety. >> at the g a o.

>> g a o or public safety? i think it was the public safety committee. >> how long ago was it? >> it was right after i believe the audit came out. that would have been april- >> this year. >> yeah. >> i guess my thought on this is that as a practical matter, there is no one else to provide this particular shelter. at least over the next year, and i think it makes sense for the board to keep digging into this and getting something that is not just hsh coming back with a new contract at the end of next year that has been put out to rfp

and one bidder has come back and it is home rise and they will take it on-i think that is probably-not say your concern, but imagine that happening and i think there are enough concerns about this organization that it might make sense for this-i dont know we can do it now, but might make sense for the committee in the new year to actually get a full on update on the status of the organization. what's been fixed, what has not, hear from the controller and bla. probably a few months out. i don't think from my perspective i think it makes sense to go ahead and do the extension and also require that. it would be a little unusual for the committee to have hearing that isn't a item, but given the importance of the organization and the services it provides it might pee okay for budget just to take a half hour or hour and have a full deep diveoon on where we are with home rise.

>> i'm most certainly prefer that in terms of having department of homelessness supportive housing, having our controller as well as mayor office of housing and community development, which also partner in this, coming together and really addressing that issue in terms of partnership with home rise. i think optimally where i stand is, can we a bit more flexible adaptive and making sure we have backup plans and also resources and support for partners and we have been through this before. i think i would say that with the controller we have been through this before with other organizations and so i'm not singling home rise as a organization, but i'm talking about more generally speaking like a status of any organization that they fall short and elevated concerns especially at this moment. it is elevated concern. >> just to respond to that, as

part of the corrective action plan, home rise has been asking us the controller office and city departments, what do they need to do to get off tier 3 status and show progress and what we said is, you need to complete the corrective action plan and then we will go through our annual monitoring and audit, do a full monitoring and that is the point at which we would have enough information to know--like i said, i meet with them every other week, so i know real time what they are doing, but we would be able to have that monitoring as a basis for discussions with the controller's office about reducing tier 3 to tier 2 as applicable so perhaps after we have done that work at the end of the fiscal year that would be the time to come back to you all with a update. >> no. i think that's the question. you now have outstanding corrective action that has not been

completed, correct? >> no, they are on progress per the plan. the plan has a designated timeline of things they need to do now and things that will take a while. it is a big organization. they have policies they are putting place, staff they are hiring, so there are immediate steps they are taking that we have asked them to take, but there are longer things they need to do. updating the system the asset management system. the it system that manages everything. consultant from housing to look at assets and what properties are in the red and what are not. those things take time, and so we want them to have the time to complete what we the city have asked them to do and-- >> how much time is time? >> it will not be done--they

have at least a year i believe. about a year. >> a year from now? >> good afternoon. jackie. director of asset management at the mayor's office housing community development. i was really pleased that my colleagues at hsh called and asked if we would come and speak potentially speak on this item today. this is actually a grant agreement that is not affiliated with a property at mohcd portfolio, but i have been working very closely with senior leadership at home rise, hsh, the controller office regularly biweekly, monthly. really over the past year or so.

some of the items that gigi just talked about will take some time, and i could say from where i sit and what i have seen to date, i have been especially impressed with the new leadership. i think if we were talking about a contract that was going to an organization that was lead by former leadership, i would have concerns. not sure if i would be here in support, but the fact that the current leadership has done so much in the time that they have been here and continue to show up and make progress, gives me a lot of optimism. we have mohcd has grant contracts through the local operating support program for 44 properties, many of which are with home rise. we continue to make dispersement on those grants because ultimately

it is the people, the tenants that are being imp pacted by these decisions so we feel it is very important for us to wrap our arms around the current leadership and organization so we can continue to serve these tenants well. >> how much time exactly are we talking about? >> that a great question. i mean, to be honest the time aspect is going to depend. there is some things that will be very much more easy to resolve, but there is some properties with respect to affordable housing, there are some aspects of it that are going to require contracting with the federal government. >> sure. sorry, only because we have 33 item s, and more to go and a long day. i just need to get to a space at this moment for us to make a decision to say about home rise. i want to take a step back.

it isn't just about home rise, any organization coming to this body asking for approval of a contract and/or contract amendment, we are putting our-basically approving something that if an organization that cannot have a specific timeline to tell us from you city department that we can address specifically the elevated concern, it is very difficult for me to say, yes, let's move on even to not be able to commit a hearing date, it is also difficult to be able to say, you will come back and report to us when and how and progress, so i think i get there is always a short-term fix and long-term fix, the question specifically is that, in order for us to address the elevated concern, how much time are we talking about for home rise? >> again, i don't have a answer to that, but i could say, as of

today they completed about a third of all those items and it has been since april of this year. that's to me is a huge amount of progress. i would imagine within the first quarter next year we will be able to get through another big portion of it, and so- >> my march 2025? >> i think we will be able to get through another big portion of it by march. >> [speaking in the background] >> we still need to continue to monitor mohcd has our annual reporting cycle too, so that to us is something that we need to look for that happens in june of each year. there is progress that will be made along the way, and we are going to continue to monitor during our

regular monitoring cycle, so not sure if i could give a precise timeline. >> then i will ask for a precise timeline and i will ask the controller right now--what is the reasonable timeline for us to be able to-my assumption is march. you mentioned the first quarter. 1/3 of it. i assume if you are on pace, perhaps we come back in march and have a hearing exactly what the progress is. is that a fair assumption. let me go to the controller office. is that a fair assumption that we should be able to expect by march to hear progress? >> so, the audit doesn't require a deadline for all of the recommendations to be impt lmented. understanding that some will take longer then others. the board can set a date and

call a hearing as you wish. the controller office will provide that update in terms of when responses are received from the department, there is a status on all the recommendations so the committee, department and provider knows what the status is of the controller office sees at that time. >> thank you. overall i wanted to say, ultimately this is public dollars going to organizations and that is expected to deliver services and they cannot deliver the services, we are putting the money at risk in the organization that may or may not continue. we had this before other organizations. again, this is a reason we will continue to really ring this back in and making sure we deliver the services for the people that needs it. that's actually ultimately the goal. please gigi. my apologies. please and the commitment to

say, let's come back for a hearing in march and then to say what progress we made. so we can move forward today with this extension of 6 months. >> of course. >> in partnership with mayor office. >> chair chan, we will be here every week if you want us. march is fine. what i was trying to convey is we as a city will be monitoring and reevaluateing the status, so when we come back in march with a update and i agree with my colleague jackie, we won't recommend a change in status and expect they will still be on tier 3 status until we go through that process. that's what i was trying to say. we can come back after that and give you another update. >> i think that by then we will be probably do either a letter inquiry or a hearing, which we will have a specific questions for you to address and answer and go to all most point by point of what kind of

corrective action then. vice chair mandelman. >> thank you chair chan. i think--from departmental perspective, you want to have this buttoned up and come to us with things that are done and ready to present and don't want to present work in progress, things that are messy. that is not-you want to give us the finished product. i are think from our perspective when there has been a failure as there has been a failure here, we tend to lean in and want to see how things are going under the hood and so i think the expectation for this hearing-i'm interested in what will be happening with the rfp forte services which i would also think the city might be interested in hearing about at that time. i think it might be reasonable to give an entire quaurtd to get through and have hearing in april, but with

the understanding that home rise-what we will hopefully hear from the controller and bla and hsh is more progress. bla might say still have concerns and we may need another hearing after that, but what we don't want and what is frustrating for elected officials is feel you are backed into a corner not being shown the work and then forced to making a decision at the very end of 2025. i think that-maybe a april hearing. >> april hearing it is. right before budget. i think that is a good timeline. so with that let's go to the next item of 29 for presentation. >> hello again. this item before you today is a resolution authorizing the department of homelessness and supportive housing to enter intop grants agreement amendment with the saint

vincent de paul society of san francisco for continued operation of multiservice center south one of san francisco's largest adult shelters. before i get into my brief presentation i want to thank chair chan for partnership and moving the item forward with proposed amendments. decreasing the extension from the original three proposed three years to one year. there is a-minded resolution before you today with these changes and i can speak to that-that is what i will speak to in the presentation and happy to read the specific amendments into the record at the end of the presentation if that's necessary and the city attorney has confirmed these are non substantive amendments since they are just reducing the duration. this is there 6th amendment to the grant agreement between us and saint vincent de paul and it extends the term to june 30, 2026. increases the not to exceed amount by

$17.6 million for new not to exceed amount of $43.5 million. the grant agreement provides the resources to operate and provide supportive services at msc south a shulter. shelter. saint vincent operated the shelter since the late 80 and operation includes maintenance, accommodations, meals and programming. and fund case management support services at the program which includes development and support of individual services plans, benefits navigation, housing assist js, document readiness, all those steps needed to help someone move into housing. this program has capacity to serve 329 people every might. it is 93 percent full and has a

nightly rate of just over $83 per person per night. this is one of the most affordable shelters. as i said, they have been saint vincent has operated the shelter since 89 and we are in the process or about to undergo major rehab. the site is city owned and will be using bond money to go bond funds from 2016 to do seismic safety improvements, a d a compliance and improving the bathroom facilities in the property. during this time of the rehab we will reduce capacity by 30 beds and then anticipating to bring those back online after the completion of the rehab. just in term s of the populations service severed over a thousand adults at the site. approximately 30 percent african american, average length of stay is about 50 days.

functioning really as a emergency shelter should without becoming de facto housing. as i mentioned before, we have amendments which have been submitted to the board and i can-you have them, but happy to read them in if you want. the summary of the amendments for the record on page 3, line 20, reducing the extension from 36 months to 12 months. page 3, lines 21, page 4, line 5 changing the term end date to reflect the shorter extension from 2028 to 2026. on page 3, lines 21 and page 4 line 6, reducing the amount added from 40 million 669 thousand, 501 to 17 million, 580 thousand, 830

dollars. on page 3, line 22 and page 22 line 7, reducing the not to exceed from 66 million, 607 thousand, 849 dollar, to 43 million, 519 thousand, 178 dollars. thank you. >> thank you. >> item 29 is resolution that approves an amendment to grant agreement between hsh and saint vincent de paul society of san francisco operate a congregate shelter. the resolution approves an moment that extend the agreement through june 2028. departments agreed to shorter term extension through june 2026. we detail on page 103 to budget for this grant. this is about 9 and $9 and a

half million per year grant. a large shelter. we reviewed the fiscal performance monitoring the city does for this program and this provider and didn't see major issues so we recommend approval of the resolution as amended. >> thank you. thank you. thank you so much for the commitment to put some of the contracts out for request for proposal, so we can kind of see what our options and also to be able to allow partners to really rethink their capacity, and what is necessary for them to be successful as a partner to the city. with that, i like to go to-i don't have any questions on item 29, so like to go to public comment for all three items. >> opening public comment for items 27, 28, 29. if we have members who wish to

address the committee, step forward to the lectern and i'll start your time. >> good evening supervisors, my name is hope [indiscernible] compass family service here to thank you for considering the needed contract adjustment today. a life line for hundreds of unsheltered families in san francisco, parents and children sleeping in cars in muni stops and places not safe for habitation. the start up is complicated and seeing significant success and take seriously the [indiscernible] fully staffed this month and continue to locate shelter and support families in accessing longer-term housing solutions as the program continues. please let me know the questions you might have. thanks for your support of the life line for homeless families. >> thank you much hope cameer. next speaker. >> good afternoon board. my name is [indiscernible] privileged to be the chief of homeless service for saint vincent de paul. on behamp of the organization,

here today to express full support of the contract amendment with the department of homelessness and supportive housing. for decades saint vincent de paul is deeply committed serving the [indiscernible] this contract has been instrumental in allowing us to provide the essential shelter operations and services to our neighbors without a home. thank you for your attention and consideration. thank you. >> thank you salvador bar. next speaker. >> hi. my name is karen erickson, chief of staff as home rise. i was hired to help work out all those 62 action items and i want to say we are working hard on them and we just thank you for your consideration for our 5th street shelter serving

44 at risk youth and provides it great place for these youth to gain skills before they finds permanent housing so thank you so much for your support. >> thank you karen erickson. next speaker, please. >> good afternoon. my name is k a t the acting directser of resident service at home rise and here to extend support for the grant agreement for home rise for the 5th and harrison transitional living program. home rise has been essential providing housing education and life skills to homeless and at risk young adults in san francisco. this program plays a critical role helping the youth transition to stable independent living. i urge the board to approve the extension to insure these vital services continue without interrupshz. interruption. thank you. >> thank you. next speaker. >> good afternoon.

my name is junaya jackson the ceo of home rise and i want to thank you budget chair chan and the other committee members for having us here today. i understand the concerns that you have. i want to assure you when i was brought into the position a year and a half ago i came with intent of resolving them and hired a team, turned over the leadership team to make sure we do that. i reorganized the organization, worked with the board of directors to start a 3 year term roll off plan, brought on new members, brought on people to the board with finance experience, so we are making big changes that take a lot of guts to do and have every intention of helping you understand that we are great partners and in this to win it with you. thank you for having us today. >> thank you. next speaker.

>> good afternoon supervisors. my name is leo levinson the chief financial officer for home rise. i was brought in in june of this year by junaya as part of this effort to really bring the home rise financial operations up to the highest level of what the city should expect for the non profit partner. it has been great working with the team junaya put together. we had a great working relationship with the controller office, mayor office housing community development and homelessness supportive housing and we are working very diligently to clear all of the audit items and will continue to do that and look forward to reporting on our success when we have our hearing this may. thank you. >> thank you much. next speak er, please. >> here to support low income housing shelters. i stayed at [indiscernible] we lost our home because we could not afford the upkeep. i want to say that this

[indiscernible] homelessness is a housing problem at [indiscernible] we want things to get better. [indiscernible] thank you. >> thank you. next speaker. >> good afternoon. my name is neal simms the treasure of

the board of directors at home rise. i am here as the voice of the board to assure you that we are committed to transparency, accountability and performance. i respect the concerns that you express around good governance and the allocation of public dollars. it is conviction of mine, i think some know i had that brand around good governance in the city for a long time and very committed to that and i think the board is as well and wanted you tahear that from us and we would be happy to be as transparent as we can be with you at any point in time around our progress and allow you to be the judge individually if you like. >> thank you much neal simms. madam chair, that completes our queue. >> thank you. seeing no public comment, public comment is now closed.

with that, i would first like to excuse supervisor melgar for the remaining of the meeting and i don't see-without objection and with that, i like to first-i like to make the motion to amend item number 28 as read outloud by deputy director emily cohen, reducing the dollar amount based on the budget legislative analyst report recommendation, and so roll call, please. >> on that motion to amend the resolution item 28 read into the record by hsh, vice chair mandelman, aye. chair chan, aye. we have two ayes with member melgar excused. >> the motion passes. i would now like to make the motion to amend item 29.

again read outloud by department of homelessness and supportive housing, which is also reducing-amend and reduce the grant term from 36 months to 12 months and to from 2028 to 2026--anyway, read out loud by them and i like to make that-move that move to amend and roll call, please. >> on that motion to amend the resolution as stated vice chair mandelman, aye. chair chan, aye. we have two ayes with member melgar excused. >> that motion passes as well. now i would like to make the motion to move item 27 and 29 to full board with recommendation and roll call, please. >> on that motion to forward the resolutions item 27-29 to full board with positive recommendation,

the resolutions in item 28-29 as amended. vice chair mandelman, aye. chair chan- >> i'm not moving item 28, only moving 27 and 29 with positive recommendation. >> i see. okay. >> holding off 28. >> okay. understood. my apologies. on that motion to forward the resolutions in items 27 and 29 to the full board with positive recommendation, 29 as amended. >> are thank you. >> mandelman, aye. chair chan, aye. we have two ayes with member melgar excused. >> that motion passes and then with the 28, a-minded with home rise item it is moving to full board with without recommendation and roll call, please. >> on that motion to forward resolution on item 28 to the full board

without recommendation as amended vice chair mandelman, aye. chair chan, aye. two ayes with member melgar excused. >> that motion passes as well. thank you. let's now move to mr. clerk please call item 30 and 31 together. >> 30 and 31 resolutions relating to the following for are real property owned pie the city at 1174-1178 folsom street and 663 clemen tina street to execute to make modification to the lease and grant agreement and take actions . item 30 approve and authorize the director of property and executive director of homelessness and supportive housing to enter into a ground lease with abode property management for initial lease term of 5 years

with 10 autoamatic extensions of the lease term for additional period of 5 years each and total rent not to exceed $1 to operate the property as permanent supportive housing. determining with the administrative code the below market rent payable serve public service providing permanent supportive housing. adopting findings declaring the property exempt surplus land under the california surplus land ablth. affirming the planning department determination and adopting the planning department findings of consistency with the general plan and priority policy at the planning code. item 31 approve the grant agreement between abode property management and hsh for property management services for supportive housing approving a term of november 1, 2024 through june 30, 2029 and not to exceed of

approximately 14.2 million dpl and authorize hsh to enter into the agreement that do not increase the obligation nor liability or materially decrease the benefits to the city and necessary to effectuate the purpose of the agreement. madam chair. >> thank you mr. clerk. now with that, i want to acknowledge supervisor matt dorsey in the chamber and would you like to have opening remarks? >> if i could that would be great. thank you chair chan. i where want to say there are a lot of thank yous to express for enabling this permanent supportive housing project to come before us with the level of support it now enjoys. i will not relitigate details. it went sideways, what matters is we preserved and clarified the original community agreement jz for that grateful to many people. thanks first to chair chan. not just for scheduling this but also

for giving breathing room so we could do this land the plane in a way that would minimum rancor and maximum community support. i don't think we would have been there had this gone earlier. to board colleagues involved in this but especially to board president peskin and ahsha safai. by virtue being candidates for city wide office for a time my district was there district too and they heard from a lot of residents i hear from who made a effort to bring this to their attention to attention of all the mayoral candidates and they were helpful in that process. i want to say thank you to hsh sure rene, emily and dylan especially and sometimes this is contentious but think everybody's heart was in the right place. abode and lyric i want to say thanks to you and i just sometimes my non responsiveness was about so

everybody knows this was because there was contract provisions. i was advised as a board member i should not be involving myself. i might risk administrative interference under the charter which i can't do:once this goes through i think we will have a good working relationship so my standoffishness was under advice of counsel because we had thinks things to work out. i also want to say thank you to west soma residents. there is a lot of challenges west soma had and issues they have with city government that preceded this project and me, but i want to say how grateful i am to them. not aevd everybody is in support but i think we have come to a place where we have a level of support. it is made clear to me that i

have a lot of work to do to make sure that this is all kept and i do the job of being a consinss super i hear the neighborhood and will continue to engage with them. thank you to chief of staff david owen who is extraordinary and all my staff equally stored. extraordinary. city attorney work did great office. mayor breed and mayor elect lurie will both very helpful and express gratitude to mayor lurie to [indiscernible] additional safety measures in the agreements are honored when he takes office and finally and most importantly i want to say thank you to the new residents of 1174 folsom street. i am asking everyone involved in this process to join me in giving the warmest possible welcome to our new neighbors. folsom street is a great

neighborhood. it centers a thriving and evolving and vibrant neighborhood. there is a lot of street working go on so it will be noisy for a while but it will have bike lanes. this is such a great nairld neighborhood. i only live a couple blocks away and grateful you will be a part of it and want to express my commitment to being your supervisors and i hope when everybody moves in we can have a meeting and i come to talk to that and more then anything i want everybody who is a resident there to know, the issues that played out in terms of some of the debate around this were not about them. this is really about a level of sometimes mistrust between residents and the city for various things. but this isn't something that should be taken personally and i will play a role to the extent i can and you have absolutely my commitment. i want to make sure that these

residents are welcomed and i'm your supervisor and i expect to hear from everybody and always give people my card and always say, i know the job i signed up for, reach out if there is any problems. if you have something to complain about, no hard feelings and if i dont hear from you i assume you are good with everything. i want to say thank you to everybody and i am happy to support this and thank you very much. >> thank you. we'll have department of homelessness and supportive housing. >> good evening and thank you again emily co hen department of homelessness. thank you chair chan for getting this on the agenda. thank you supervisor for all the debate and rigorous back and forth and agreement here. i'm thrilled to be here with this project. working oen this project seems like forever, but maybe for the last year and a half and really excited to bring new youth housing to soma in a way and

partnership with the isbeautiful community that is here today. going to get into details of the project. also have staff from abode and lyric here today as well as our deputy administration and finance gigi if there is questions about the lease structure. what we have before you today are two items. first is resolution that would approve the ground lease with abode property management for the city owned property at 1174 folsom street to operate as permanent supportive housing for young adults. the ground lease has initial 5 year term with 10 extensions of 5 years for maximum term of 55 years. this structure and term of the ground lease was developed to closely mirror mohcd affordable housing model. the total rent is 1 dollar.

the below market rent serve a public purpose providing permanent homes for low income and are formally homeless young adults in accordance with the administrative code. the second resolution before you today is a funding agreement between abode property management and the department of homelessness supportive housing to provide property management services at 1174 folsom. the term for this agreement will begin january 7, 2025 and end on june 30, 2029. given the continuation of the item we have proposed amendment to read into the file to reflect the new start date. not to exceed for the grant agreement is $14.2 million. the proposed amendment is funded with our city our home funding at approximately 81 percent and 19 percent is fund ed with general fund.

the our city our home resources are intended by the will of voters to implement housing first and support perm independent supportive housing for variety of populations acrauz our community. and just want to note that this agreement was heard by the homelessness oversight committee and approved in september. little background on the project 1174 folsom. back in the fall of 2023, so a year ago, the board unanimously approved hsh to purchase this building using our city our home funds for the express purpose of permanent supportive housing for young adults and we are here today with the necessary agreements to make that come to life. the property is a newly constructed from 2021 building with 42 units. it will serve young adults 18-24 years old as we know abode property management was selected as the site operator and lyric will be

providing on-site social services for the young folks living here. the property was constructed in 2021 and has really critical amenities that make this a great project for young folks including individual bathrooms, on site launldry, indoor and out door community space, working elevator and great access to public transit. [indiscernible] who are we serving? who are your neighbors going to be in west soma? this project is intended for young adults. we estimate we have over 1100 young people experiencing homelessness in our community on any given night. 68 percent of those young folks are living unsheltered. 63 percent are in school or actively employed and nearly 40 percent identify as lgbtq. and this building is here to

serve them. we have-this purchase was made 1174 folsom was made as part of city wide effort to acquire properties coming out of the covid pandemic and this is one of 10 supportive housing properties we purchased since 2020. four of the sites with 142 units are serving young adults. this body approved the agreements for 42 otis just a few weeks ago and that is nearly identical project and ase agreement. so, community commitments as supervor dorsey alluded to, we have a long and sometimes contentious community engagement ocess through the development of the project and openg of this project and we work closely with the soma west communy, the mayor office, supervisor dorsey, and the providers and operators to come

to some agreements that help make us a positive addition to the community. everywhere we go we want to be a positive contributor to e neighborhood and i think we t parameters in place that will insure that. in terms of security, we have agreed to during the process when we had not gone into contract, have been providing 8 hours a day private secury at the site that is largely to support e businesses on the groundloor. the intention was to wind that down as a site leased up, but we committed to extending tha in terms of supporting safety and cleainess, hsh is funding expansion of the west soma community ambassdor program to provide 24/7 public saety support in the areas from 6 to 8 stre and howard to harrison. this will insure but more public safety support around 1174, home se and the

sancary which are services located in the neighborhood. this funding has been include said in the abode coract and will be subcontracted out orhas been subcontracted out to the soma west community. we additionally have been working with dph, department of public health to secure addional funding from their home rise program to add an extension of the ambassador service down rus street to insure safe passage for young folks and families on their wa to the park, the school and other services in the area. the lease addendum e final item of debate and discussion, we reach agreement between hsh abode and the supervisor that abode will add the following langua to addendment b of the tenant lease which is memorialized through amendments to both the ground lease anthe gra agreement. this is very similar language

to what already exists, but provides additional clarification. tenant conduct that interferes with the peaceful enjoyment of the property or neighbors or viola law including but not limited to drug related la may be grounds for termination of a tenancy. is is standard language that is in all our lease agreements but we called out not limited to drug related laws in this agreement to insure everyone is aware of the rules they are signing up for when ty sign the lease for the property. before i close, i do want to thank folks. i want to thank the community incredibly supportive of this project. i want to thank young folks and the lgbtq community who have been strong advocates. thank supervisor dorsey and his staff and operators and the hsh team that has main this possible. it is a labor of love i think

for everybody involved and i'm just beyond excited we are moving this forward. i do have amendments, which we have confirmed with the city attorney to be non substantive and can read them into the record if you choose. the first amendment is to address the change of the start date for the grant agreement and this is file number 240848. on page 1, line 6, we are iamending the term from november 2024 to start january 7, 2025. page 2, line 16 and 17, amending the term, november 1, 2024 through june 30, 2029 to january 5, 2025 through june 30, 2029. page 3, line 3, we are amending the term, november 1, 2024 to

january 7, 2025. the second update to the reference of appropriate contract authority as it is a grant agreement and not a contract in both the grant agreement file 240848, page 2, lines 14-15 and in the ground lease, page 3, line 6 and 7 the change should be change the admin code 21.6 to 21b and replace which authorize the city to purchase services directly when there is a lack of responsive offers to, because there were no submissions received for rfq number 142. memorialize the commitment regarding the lease addendum b, we made the following amendments to the ground lease and grant agreement. for the ground lease, page 7

and 8, section 5.3.8 will read, peaceful enjoyment of compliance with legal requirements tenants agree residents conduct doesn't interfere with the peaceful enjoyment of resident or neighbors or violate legal requirements including but not limited to drug related laws, may be grounds for termination of resident tenancy. on the grant agreement, which is page 37, the description of services should read the grant shall provide the following services to the total number of units listed in appendix b as part of the property management and compliance with the lease for the grant plan grantees agrees tenant conduct unreasonably interfere with peaceful enjoyment of the property of other tenants or neighbors or violate any criminal law including but not limited to drug related laws may be

grounds for termination. a lot of words, but to get if to the record and again, i want to reiterate this is a clarification of a existing terminology that is within all our grant agreements, and just really spells out what the expectations are. thank you all and happy to take questions when you want. >> item 30 and 31 are two resolutions that approve two different agreements. one is a ground lease with abode property management related to 1174 folsom street. the ground lease has 5 year term and then 10 automatic 5 year extensions so long as performing on the ground lease and related grant agreement which is the subject of the next resolution, which approves a property management agreement with abode for that site. the total cost that agreement is $14.2 million largely funded by

proposition c revenues. that agreement funds abode staffing essentially at that site to management the site. there is separate support services contract for the case management support services but abode is taking the lead on property management at the site. it is long-term ground lease consistent with other long-term ground leases hsh and the board have approved for their acquired properties and we recommend approval of these items. >> thank you. i really appreciate just want to express gratitude to supervisor dorsey and department of homelessness supportive housing as well as the community advocates contractor and the neighbors that creating that environment to make sure that collectively it is a welcoming environment for young people to be able to come to the neighborhood and be housed and it is a really

critical space and really happy to see that we can come together to support the project so thank you so much and thank you supervisor dorsey for your leadership. i like to go to public comment. >> we are opening public comment for those who wish to address the committee regarding these items. 30 and 31. if you can line up along those curtains and once the first speaker approaches the lectern, i can start your time when you begin speaking. >> my name is robert caustic with [indiscernible] but also a resident in soma. [indiscernible] the neighborhood is a vibrant lgbtq community and it makes sense that this would have a housing project for young lgbtq adults there.

[indiscernible] homeless population are lgbtq. many who face homelessness due to rejection from unsupported families or communities who are straugal on journey towards self-acceptance. sadly, our community is entering dark period with threats of lgbtq rights across the country. san francisco [indiscernible] advocacy the best city in the world for the lgbtq community and beacon of hope. community supports each other now here today we need to be a guiding light for queer people everywhere in providing housing i frung lgbtq adults. for these reasons i support the projeblth. ect thank you. >> thank you. next speaker, please. >> hello. my name is [indiscernible] i am a pediatric nurse and

resident in soma and here to speak in support of this measure. homelessness among youth continues to be a critical public health crisis and also just want to speak to the fact that i've done work at marie x martinez clinic so seen the extent of harm that homelessness does to people physically emotionally, socially and i'm really excited to see that a project like this come forward. there was one more thing that i wanted to speak to and that is that i hope that in the future projects can be inclusive of people who use drugs because everybody's in the community deserves housing including those who do drugs. >> thank you.