egging gone. >> i'm sorry mr. egon i didn't see i arrive and i'm ted from the controller's office. last week, i testified will the method doing that did controller's office that calculate this and i prepared a memo that lays out and i how much of hope certify detail that goes into the calculation and i hope it what's-her-name our questions. just to reiterate the basic idea of the index that we will provide to the rent board it something that takes the current rent and deinflates it down to the base rent to the oriental payment or the original rent when the unit was vacant and recalculates based on the average increase the market rates vacant. we're constructing an index that is simple a single number that is multiplied by the current rent and multiplied by 24 to arrive at the total relocation payment. we think this approach is administratively good and reflects the uniqueness of the particular unit. i'm happy to take any specific questions you have >> thank you. i appreciate you putting this together i've not had a chance to review it. can you provide an example of an exercise part

this is i'll recognize supervisor campos to respond but this question is to the calculation for mr. egon as well as the hard of hearing by the rent board this legislation defers quite a bit of flexibility to agencies i'm not suggesting we should be micro managing that they should have neglected to administer those but those are policy questions that's why i suggested the policy should be more detailed in terms of the hardship and determination and in terms of the calculations otherwise i have respect for the agencies but could implement the law in a way that may or may not be consistent with the intent sorry supervisor campos. >> thank you, madam chair. you have to be careful how you strike it balance. i don't think that anyone can sit up here and say that under us a specific scenario would be clued. you want to give enough direction but provide flexibility. i trust that the rent board will go back and look at the form and figure out what's reasonable and to the extent p there are people who have suggestions i hope they're open to that so the department association and altercating others

. >> thank you if i may call on mr. egon from the controllers office and thank mr. egging gone for the technical assistance. >> good afternoon ted. our office was approached by supervisor campos office with the request can we provide the information that will allow a landlord to understand the market rate of a unit that they were vetoing someone from and the question was could we use average rent for example the size of the unit can we get that data on a neighborhood by neighborhood basis and we advised the supervisor the best measure of what a given units market rate would be what would that have rented for if it was not subject to rent control so this led to the idea of the construction of an index that would be basically a number you would multiple by the rent of the unit that will vary for how long the unit has been subject to rent control since the last time it was vacant. this index does it varies from one year to the next it's a bigger number and it is reflecting both what the original rent would have been had the unit been subject to the allowable rent since

rent increases have been taken by the landlord >> if i interrupt that's not what i right hand lane mr. egon. >> right but i asked him and he confirmed it. >> we'll get clarity. >> that makes it, you know, a complete picture of what happens with the market and also i think landlord do impose especially the speculators increase the ellis act on a 50 day notice if more than 10 percent. i think the and i think the owners will determine based on their calculations as to what makes the minimum payment and whether they impose the increases or not will be what the maximum or minimal is under the ellis act as amended thank you very much >> thank you. is there any additional public comment on item 5? you've already >> i think supervisor kim has a question. >> oh, yeah. supervisor kim. >> please come up. my question was i know there was a study done of the victorious so there's a lot of concern about the mom and pop and how this legislation impacts them but who's the veeshgors. >> i just wanted to address that we finished compiling a lot of research and joint tenants with the organizations looking at