Budget and Appropriations Committee Meeting - July 13, 2022: Approval of $146.8 Million in COP for Affordable Housing
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Budget and Appropriations Committee Meeting - July 13, 2022
This meeting of the San Francisco Board of Supervisors Budget and Appropriations Committee, chaired by Supervisor Hillary Ronan, considered a single item: the appropriation of $146.8 million in Certificate of Participation (COP) proceeds for affordable housing, land acquisition, public housing repairs, educator housing, and related financing costs. The committee heard from supervisors, received a report from the Budget and Legislative Analyst (BLA), and took public testimony before approving a clarifying amendment and forwarding the ordinance to the full board with a positive recommendation.
Public Comments & Testimony
- Charlie Shamus (representing Council of Community Housing Organizations) expressed strong support for the COP proposal, calling it a "bold and innovative approach" to fund affordable housing and anti-displacement strategies, and urged prioritization of Black, American Indian, immigrant, and other communities of color. He supported Supervisor Preston's clarifying amendment.
- Eileen Bogan (Coalition for San Francisco Neighborhoods) spoke in opposition, arguing that COPs allow the city to issue debt without voter approval, carry higher interest rates, and add to the city's existing debt burden ($1.3 billion in outstanding COP debt and $2.5 billion in general obligation bonds). She opposed further issuance.
- Anastasia Ovanopolis (Anti-Displacement Coalition) expressed support, noting that the BLA report indicated a healthy city budget and that the program should expand to include neighborhoods at risk of gentrification and displacement. She also thanked Supervisor Preston for the amendment.
Discussion Items
- Supervisor Dean Preston (sponsor) thanked the committee and Mayor's office for the affordable housing package, noting that the item was continued from a previous meeting due to amendments. He introduced a non-substantive clarifying amendment to correct language regarding "SIDLAC designated high need/resources areas" — changing it to "SIDLAC designated high resource areas and/or high need areas" in three places. He stated this clarification was requested by advocates and approved by the city attorney and controller.
- Supervisor Connie Chan thanked Chair Ronan and Vice Chair Safai for including API community priorities in the budget, and praised Supervisor Preston for collaboration.
- Budget and Legislative Analyst presented a report on the ordinance: $146.8 million appropriated from COP proceeds (including $112 million for projects and $34.8 million for financing costs). The ordinance does not authorize new debt; that would require separate board action. Total estimated debt service is $251 million. The city's COP debt service cap is 3.25% of general fund revenues, and there is currently spare capacity of about $80–$120 million, so the new projects fit within the cap. Approval is a policy matter for the board.
- Supervisor Hillary Ronan (Chair) thanked Supervisor Preston and Chan for their work, noting that the COP funding was a creative solution to secure significant affordable housing resources. She emphasized the link between housing stability and issues like homelessness, workforce retention, and health.
- Supervisor Ahsha Safai clarified that the current action is an appropriation, not an authorization to issue debt. He expressed hope that sites for land acquisition (especially for 100% affordable housing and API community priorities) would be brought back to the committee for public discussion before the debt authorization.
- Supervisor Rafael Mandelman (via remote? Actually Supervisor Mar) thanked all parties and acknowledged community stakeholders (Housing Stability Fund Oversight Committee, API Council) for driving the process.
Key Outcomes
- Clarifying Amendment (moved by Chair Ronan, seconded by Supervisor Mar): Unanimously approved (4 ayes, Member Walton excused) to change the language from "SIDLAC designated high need/resources areas" to "SIDLAC designated high resource areas and/or high need areas" on pages 1, 3, and 5 of the ordinance.
- Motion to Forward to Full Board with Positive Recommendation (moved by Supervisor Chan, seconded by Chair Ronan): Unanimously approved (4 ayes, Member Walton excused). The item is expected to appear on the Board of Supervisors agenda on July 19, 2022.
Meeting Transcript
The meeting will come to order. This is the July 13th, 2022 budget and appropriations committee meeting. I'm Supervisor Hillary Ronan, Chair of the Committee. I'm joined by committee members. Also joined today. Vice Supervisor Dean Preston and our clerk is Brent Halipa. And I want to thank Lena Mendoza at SFGov TV for broadcasting this meeting. Absolutely. On that motion to excuse uh member Walton, Vice Chair Safai. Safai I remember Mark. Mar I, Member Chan. Jan. Aye. Chair Ronan. I. Ronan and I. We have four eyes with uh member Walton excused. That motion passes unanimously. Mr. Clerk, do you have any announcements? Uh yes, the Board of Supervisors and its committees are now convening hybrid meetings that allow in-person attendance and public comment, who also providing remote access and public comment via telephone. The board recognizes that equitable public access is essential, and we'll be taking public comment as follows. First, public comment will be available uh on the item on this agenda. Those attending in person will be allowed to speak first, and we will take those waiting on the telephone line. For those watching either channels 26, 28, 78, or 99, and SFGovTV.org. The public comment number is streaming across the screen. That number is 415-655-0001. Again, that's 415 65501, then enter the meeting ID of 2495, 414, 5416, then press pound twice. When connected, you will hear meeting discussions, but you'll be muted and in listening mode only when your item of interest comes up. Uh those joining us in person should line up to speak, and those on telephone should dial star three to be added to the speaker line. If you're on your telephone, please remember to turn down your TV and on listening devices you may be using. Each speaker will be allowed up to two minutes to speak unless otherwise stated. Uh alternatively, you may submit public comment in writing in either of the following ways. Email them to myself, the budget and appropriations committee clerk at B R E N T J A dot J A L I P A Hat S F G O V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments via U.S. Postal Service to our office and city hall. That's one Dr. Carlton B. Goodlith Place, room 244, San Francisco, California, 94102. And finally, Madam Chair, items acted upon today are expected to do to appear on the Board of Supervisors Agenda of July 19th, unless otherwise stated. Thank you. Uh can you please call item number one? Yes, item number one uh is an ordinance appropriating 112 million of certificates of participation proceeds to the mayor's office of housing and community development for a notice of funding availability for land acquisition with priority for development of 100% affordable uh projects in uh California debt limit allocation uh committee designated high need uh or resources areas, repairs for public housing or federal housing, and urban development co-ops, affordable housing for educators, elevators in the cities, um single room occupancy portfolio, and acquisition for nonprofit sites, and uh 300 oh sorry, and 34.8 million host certificate of particip participation proceeds for various associated financing costs and fiscal year 2022 to 2023, and placing these funds on reserve pending sale of certificates or participation. Members of the public who wish to provide public comment on this item should call 415-655-0001. Meeting ideas 2495-4145416, and then press pound twice. If you haven't already done so, please dial star three lineup to speak. A system prompt will indicate you have raised your hand, please wait until the system indicates you haven't been muted. And that's your key to begin your comments, madam chair. Thank you so much.
openpublica.com