Good morning.

The meeting will come to order.

Welcome to the July 10th, 2024 meeting of the budget and finance committee.

I'm Supervisor Connie Chan, Chair of the Committee.

I'm joined by Vice Chair Raphael Mendelman and Supervisor Mirna Malgar.

Our clerk is Brent Halipa.

I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting.

Mr.

Clark, do you have any announcements?

Yes, Madam Chair.

Just a friendly reminder to those in attendance to please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings.

Should you have any documents to be included as part of the file, this should be submitted to myself, the clerk.

Public comment will be taken on each item on this agenda.

When your item of interest comes up and public comment is called, please line up to speak on the west side of the chamber to your right and my left along those curtains.

And while not required to provide public comment, we do invite you to fill out a comment card and leave them on the trade by the television to your left by the doors.

If you wish to be accurately recorded for the minutes, alternatively, you may submit public comment in writing in either of the following ways.

Email them to myself, the budget and finance committee clerk at B R E N T.

SFGO 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 in City Hall at one.

Dr.

Carlton be good at place.

Room 244, San Francisco, California, 94102.

And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors Agenda of July 16th, unless otherwise stated.

Madam Chair.

Thank you, Mr.

Clerk.

And uh a general reminder for the public is that we uh for those items that have the budget and legislative analyst report, we will go to the department presentation and then the budget and legislative analyst report, then we will go to question, then public comments.

And so with that, Mr.

Clerk, please call item number one.

Yes, item number one is an ordinance amending the administrative code to permit the issuance of bonds to finance the acquisition, development, rehabilitation, or construction of uh middle income wait.

Yes, middle income and workforce housing and to establish ownership tenancy affordability or program requirements.

Madam Chair.

Thank you, Mr.

Clerk, and want to welcome and acknowledge our uh board president Aaron Paskin in the chamber.

And would you like to start with opening remarks on this item?

Thank you, Chair Chan and members of the budget and finance committee.

I appreciate your scheduling this item that my office has been working on now for a number of months, and I really want to thank the uh working group who presented this idea uh originally back in November of 2023, uh, especially Fernando Marty, Eric Tao, and Rebecca Foster from the Housing Accelerator Fund.

Um and I really want to appreciate the City Attorney's Office, Ken Roo and Keith Nagayama uh for our help along with Scott Reiber and Carol Reward, uh covering tax law, um, as well as the Office of Public Finance, Anna Van Degna, uh, the uh treasurer's office who uh the assessor's office who helped us with possessory interest tax issues, Juan Carlos and Holly uh Lung, uh, as well as the mayor's Office of Housing and Community Development, Dan Adams, Maria Benjamin, and William Wilcox, and uh most of all my staff, Nate Hurrell, who has been grappling with this uh very interesting piece of uh housing financing legislation, uh, which we call the workforce housing and affordable middle income revenue bond act.

Uh we need house the housing we need act.

Uh much much has been made about uh our lack of building new housing uh at all income levels in San Francisco, um, and as we grapple with issues of streamlining and issues of zoning and upzoning uh and uh inclusionary housing uh reductions.

Uh the one thing that has really been missing has been a source of financing that allows projects to move forward in an environment where interest rates have been high.

Uh and uh we realize um and other municipalities in the form of joint powers authorities in the southern part of our state have actually used their municipal governmental powers to issue uh tax exempt revenue bonds not paid for by taxpayers, and that is what this proposal uh encompasses.

Um with that I have a very quick PowerPoint, and if I could ask uh Nate to help us walk through that.

Mr.

Harrell.

Um, thank you for your work on this.

Uh I think we can all agree that our housing market uh is broken and troubled, and the market alone cannot meet the needs of San Franciscans and our essential workers uh at all income levels.

Um we know that the housing market is cyclical, uh, and in a down cycle, the market uh is frozen, and that's precisely what we've been experiencing.

Private capital depends on high rates of return and uh stops building when rents are lower and interest rates are higher.

Uh and instead of pointing fingers, this legislation just takes direct action and really gives us a new set of tools locally to meet our housing needs, uh, especially during market downturns.

Um we all know what our RENA demands are, which include 82,000 units by 2031, 46,000 of them affordable.

Oh, I'll let you get that going.

Yeah, I think we're just waiting for SFGov TV to put that onto the screen.

Thank you.

You can advance to the next slide, Nate.

And while I'm proud of our collective work to uh pass any number of affordable housing general obligation bonds, uh, as well as the work that we were discussing in the rules committee to have a permanent source of funding for extremely low-income subsidies.

Uh, we all know that our RENA demands do not come with any or enough subventions uh or financial resources to meet our needs.

Um relative to housing our workers, uh, teachers, uh, municipal workers, other uh workforce housing.