Good morning.

The meeting will come to order.

Welcome to the October 22nd 2025 meeting of the budget and finance committee.

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

I'm joined by Vice Chair Supervisor Matt Dorsey, shortly by Member Supervisor Cheyenne Chin.

Our clerk is Brent Halipa.

I would like to thank Eugene Lombardia from SFGov TV for broadcasting this meeting.

Mr.

Clark, do you have any announcements?

Thank you, 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, they 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 in public comment is called, please line up to speak on the west side of the chamber to your right, 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 those doors.

If you wish to be accurately corded 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.j.

Sf 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 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 October 28th, unless otherwise stated.

Madam Chair.

Thank you, Mr.

Clerk.

And before we call item number one, I would like to remind everyone that generally speaking, when we have a budget and legislative analyst reports for the items, for those items that we will have the department presentation first, followed by the budget and legislative analysts.

Then we'll take questions and public comment.

So with that, Mr.

Clark, please call item number one.

Yes, item number one is a resolution retroactively authorizing the police department to accept and expend a grant in the amount of approximately 63,000 from the California Governor's Office of Emergency Services for the Paul Coverdale Forensic Science Improvement Program to train and procure equipment for the criminology laboratory with the project period beginning on April 1st, 2025 through March 31st, 2026.

Madam Chair.

Thank you.

And uh today we have the police department here.

Good to see you.

You too.

Good morning, Chair Chan, Vice Chair Dorsey, Supervisor Chen.

I'm Carl Nasita, Government Affairs Liaison for the police department.

As Mr.

Halipa just announced before you is a resolution authorizing the police department to accept and expend $63,254 from the California Governor's Office of Emergency Services under the Paul Coverdale Forensic Science Improvement Grant for the period of April 1st, 2025 through March 31st, 2026.

Although the award amount is under the 100,000 threshold for board approval in the admin code, the state requires proof of governing body authority as a condition of the grant before releasing funds.

For that reason, and consistent with the board's actions on prior Coverdale grants, the department is seeking approval by resolution.

Because of the same state requirement, the resolution is retroactive.

While the department budgets the annual grant in the annual appropriation ordinance, Cal OES will not release the funds until the governing body formally authorizes acceptance.

Just a brief bit of background.

The Coverdale program is a longstanding federal initiative that helps local forensic laboratories strengthen scientific accuracy and efficiency.

This year's award fund will be used for specialized staff training, professional certification, and upgrades to analytical and digital evidence tools that enhance case turnaround times, data integrity, and overall lab reliability.

Approval today allows the department to continue implementing federally supported improvements that enhance accuracy, reduce evidence backlogs, and maintain accreditation.

I am happy to answer any questions you may have.

Thanks.

Thank you.

It uh seems like it's uh a lot of trainings uh that comes with this grant.

That is correct.

Yes, mostly training and as well as maintaining maintaining accreditation.

That's great.

Thank you so much.

I don't see any name on roster.

We don't have any other additional questions.

Let's go to public comment on this item.

Yes, we are opening public comment for this item number one.

If we have any members of the public who have joined us today who wish to address this committee, Madam Chair, we have no speakers.

Seeing no public comments, public comment is now close.

Colleagues, I would like to um also want to acknowledge Supervisor Chen.

It's here.

Welcome.

And so with that, um, I would like a roll call.

I would like to move this item to full board with recommendation and a roll call, please.

And on the motion to forward this resolution to the full board to the positive recommendation.

Vice Chair Dorsey.

I Dorsey I, Member Chen.

Chen, I.

Chair Chan.

Aye.

Chan, I we have three eyes.

The motion passes.

And Mr.

Clark, please call item number two.

Yes, item number two is a resolution approving award of professional service agreement for an airport contract for operation and maintenance of airport baggage handling systems between uh I think it's Beamer lifecycle management LLC and the city and county hacking by and through its airport commission and an amount not to exceed 30 million for a term of three years, commencing on November 1st, 2025 through October 31st, 2028, with a single option to extend for two additional years exercisable at the sole discretion of the airport commission pursuant to the charter.

Madam Chair.

Thank you, and we have SFO here.

Good morning, Deanna Volek with SFO.

The proposed resolution would approve a baggage handling system operations and maintenance contract in Harvey Milk Terminal One between San Francisco International Airport and Boimer Life Cycle Management LLC for a term of three years in an amount not to exceed 30 million.

Boimer Corporation is under contract to operate and maintain the baggage handling system or BHS in Harvey Milk Terminal One.

This state-of-the-art system uses bi-directional tote system technology to transport bags throughout the terminal.

The original contract is the result of a 2015 competitive request for qualifications and proposals process for a design bill contract for the system.

In March 2025, the Office of Contract Administration approved the use of a sole source agreement since a portion of the baggage handling system is still under warranty, and the system operates with Boimer's proprietary software.

The proposed contract will provide operational availability at all times, as well as labor materials, parts, and equipment to perform operations and maintenance services related to the system.

The scope of services include scheduled and preventative maintenance, on call, unscheduled maintenance, and repairs and reporting.

Boimer has met the contract's performance thresholds of system uptime, accuracy of baggage sorting, and timely completion of maintenance requests.

The budget analyst office has reviewed the contract and recommends approval, and I am here with members of our terminal systems team in case you have any questions.

Thank you.

Good morning, uh Nick Minard from the budget legislative analyst office.

Item two is a resolution that approves a new contract between the airport and Boimer.

The contract has a $30 million value, a three-year initial term, and one option to extend by two additional years.

Boimer is the current uh operator of the Terminal One baggage handling system.

They built that system.

The system runs on software that only Boimer can maintain.

And so for that reason, uh this new maintenance contract uh was awarded on a sole source basis.

Uh we show the performance of the contractor on page four of our report.

Uh the performance is measured by the system's uptime, how how often it's available, how accurate the baggage sorting is, um, and whether they complete timely maintenance requests and Boimer is meeting those thresholds.

Uh, we also show the contract budget on page five of the report.

This 30 million dollar value is sufficient to get Boimer through the first three years of the contract.

Um, the airport will likely have to come back to the Board of Supervisors to exercise the second option because the 30 million dollars is only sufficient to cover those first three years of spending.

Uh, this contract is funded by airport revenues, and we recommend approval of item two.

Thank you.

Um, during the discussion with budget and legislative analysts, um, just uh identifying that um there seems to be in terms of um baggage handling systems.

There's a varies of uh like different systems to all the airport.

Do you want to help us understand just a little bit better about you know, um what is approach?

Uh is there intention that maybe eventually uh consolidate them or or why we should not be consolidating them.

Yes, I'd like to ask Enrique Gordiamos to kind of just explain that myriad of systems that we have through our terminals.

Thank you.

Good morning, supervisors.

Uh Enrique Willyamos.

Um director for terminal systems.

Uh one of the areas under my purview is the baggage channel systems, the maintenance and operations.

So, your question is uh looking forward as whether we want to consolidate some of these systems.

Each terminal has a different system.

Um it's implemented based on capital uh projects.

Uh when they look at that, they look at the design of the building, uh, whether what is the most effective and efficient way to introduce new technology as well and efficiencies.

So, in looking at that, uh we take into consideration uh what savings we can do as far as electrical savings and um how the system is going to perform eventually and what um other systems are out there in in uh in installation throughout the world and also in the U.S.

and make those decisions based on that.

So to answer your questions, we do look at whether consolidating is the best option based on those parameters, and then we'll make a decision from a capital perspective.

What is the I guess uh live ex live expectations, expectancy of the system?

Yeah, this systems um uh could go up to 20, 25 years, uh, and depending on the maintenance, it could go beyond that and uh also uh depending on the technology and the new systems are very software heavily um uh relying on a lot of new technologies, so we always look at that to see if there's any improvements that can be made.

Thank you.

Um I don't see any name on the roster.

We don't have additional questions.

We'll go to public comment on this item.

Thank you.

Yes, we are opening public comment for this item number two.

If we have any members of the public who wish to address this committee, Madam Chair, we have no speakers.

Seeing all public comments, public comment is now closed.

Colleagues, I would like to send this item to full board with recommendation and a roll call, please.

And on that motion to forward to the full board to the positive recommendation, Vice Chair Dorsey.

Dorsey, I member Chen.

Chen, I.

Chair Chan.

Aye, Chan, I we have three ayes.

The motion passes.

Thank you very much.

Thank you.

Um, please call item number three.

Yes, item number three is a resolution approving amendment for between uh the city hacking by and through the Office of Contract Administration and Universal Protection Service LP, doing business as allied universal security services for unarmed security guard services at San Francisco General Hospital, extending the contract by five months for a total term of February 15th, 2023 through June 14, 2026, and increasing the contract amount by approximately 2.2 million for a total non-text seed amount of approximately 12.2 million effective upon approval of this resolution and to and to authorize OCA to enter into amendments or modifications to the contract that do not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the contract or this resolution.

Madam Chair.

Thank you.

And today we have Office of Contract Administration here.

I thank you.

Good morning, Chair Chan and Supervisors.

My name is Will Alderman.

I'm with the Office of Contract Administration.

I'm also here with a colleague from the Department of Public Health, uh Basil Price.

Um, we're here today to provide our recommendation for the approval of amendment four to the unarmed security guards contract for the San Francisco General Hospital.

The Office of Contract Administration is seeking to amend the contract with Allied Universal Services, extending the contract by five months, increasing the not to exceed amount to allow additional time for a new solicitation to be completed and awarded.

The contract provides security guard services for Zuckerberg, San Francisco General Hospital, thereby ensuring the safety of its employees and the members of the public who visit this 24-7 level one trauma center each day.

This contract was originally awarded to Black Bear Security Services via a competitive solicitation in December of 2022.

In January of 2025, OCA and Black Bear mutually agreed to terminate the contract for convenience, and OCA proceeded to contract with the next highest ranked proposer, Universal Universal Protection Service LP, DBA, Allied Universal Services in February of 2023.

OCA is requesting to extend the current contract with Allied Security Services by five months with a new term and date of June 14, 2026, and to increase the not to exceed amount by $2,186,000 for a total not to exceed of $12,180,000.

From fiscal year 2223 through August 2025, the total spend for security services on this contract has been approximately $8.4 million.

This is an average monthly spend of approximately $291,000.

Allied's pricing is based on a uh bid proposal of $73.23% markup over the fully loaded prevailing wage rate of approximately $25.32 cents per hour currently for security guard services, which is approximately $291,000 per month.

OCA is also calculated a 20% contingency as OCA contracts routinely routinely include contingencies to account for potential cost fluctuations.

For this particular contract, we considered several factors: anticipated wage increases per guard, annual prevailing wage adjustments, staffing requirements, and potential need for additional security during large scale events that may increase hospital usage.

Including a contingency provides the flexibility to manage unforeseen expenses while ensuring uninterrupted services essential to the safety of the staff and patients.

This concludes my presentation.

The amendment extends the agreement five months from mid-January 2026 to mid-June 2026 and increases the value from $9.9 million to $12.2 million.

The purpose of this short term extension is to allow OCA to put together a new RFP to reprocure these services.

And this contract provides security guards that the Department of Public Health uses to staff fixed posts at San Francisco General Hospital.

We summarize the budget on page 10 of our report and recommend approval of item three.

So I guess uh I just f wanted to publicly confirm and validate it that you know within the next five months uh with this extension that there will be a new RFP coming out.

That's correct.

Uh it's uh in process at the moment.

Great.

Thank you.

Uh I don't have any additional questions.

Um let's go to public comment on this item.

Yes, if we have any members of the public, who I should address this committee regarding this item number three.

Now is your opportunity to approach the lecture.

Madam Chair, we have no speakers.

Seeing no public commons, public comment is now close.

Colleagues, I will like to first uh make the uh motion to amend uh as proposed by the Office of Contract Administration to correct a dollar amount with three thousand dollars less uh than is currently written uh and to move the amended item to full board with recommendation and a roll call, please.

And on that motion to amend uh the resolution uh to lower the to lower the amounts by three thousand uh throughout the res uh throughout the legislation and to forward that resolution to the full board with a positive recommendation as amended.

Vice Chair Dorsey.

Dorsey, aye, member Chen.

Chen, aye, Chair Chan.

I we have three ayes.

The motion passes.

Mr.

Clerk, please call item number four.

Yes, item number four is a resolution retroactively authorizing the fire department to accept and expend the grant in the amount of approximately two point three million from the Federal Emergency Management Agency Assistance.

Two fighter fighters grant program to purchase personal protection equipment for the performance period of September 12, 2023 through September 11th, 2025, Madam Chair.

Thank you.

And today we have the San Francisco Fire Department here.

Good morning, supervisors.

Um Mike Mullen, Assistant Deputy Chief of Support Services, and the department is uh requesting that you retroactively authorize uh acceptance and expenditure of a grant for from FEMA for the assistance of firefighters grant program for personal protective equipment, specifically turnouts, and this is in line with the 2024 Board of Supervisors resolution directing us to buy PFAS free turnouts only.

Um after much work with the industry, we have finally procured PFAS and bromine free turnouts.

We sent them out for independent testing, it's been confirmed, and this grant will buy uh 1,100 coats and 580 pants that are carcinogen-free.

So we kindly ask for your support.

Congratulations.

That's huge.

Yes.

Um, I uh my assumption is if I remember correctly, and please correct me if I'm wrong.

Um, this it was really good news because I think at that time the estimates was roughly almost up to 10 million dollars.

If we were to do a complete investment for all the turnouts uh to make sure that they're PIFAS free.

Um and this is like at that moment when we are learning about the grant opportunity.

Thought that it was a great first step.

And most importantly, at that time, we didn't even know that if all those turnouts with PFA free really also have it's is it still sturdy?

Is it still safe and up to the standard?

Um could you just elaborate a little bit more and help us understand?

One is um have they been tested now that we know uh that they are um sturdy, they are you know proven to be safe for all firefighters, not just uh the that fact that is PFA free, but also just all the standard that's required for them, and then second is that you mentioned roughly about a thousand turns out uh turn out, and then roughly uh uh how many pens?

580 580 pens.

Um, so is that enough or are we actually still need to continue to get more grants?

Please, so we will supplement with general fund for the remaining pants to get a full set of eleven hundred, and that will get probably around 90 percent of our field personnel, people working at fire stations going to fires will have one set of PFAS-free turnouts.

Um people in prevention, things like that will not be getting them right away eventually over a several years.

We hope to get the entire department having two sets of PFAS-free, but that's our initial push.

It's great.

Um, could you give us a roughly a cost estimates for the 500 uh pans uh that it will be coming out from the general fund?

And my assumption is is coming out from the department's uh budget.

So let me find so the price for the pants is about thirteen hundred dollars, and the coats are nineteen hundred dollars.

Um,900.

So we're still, we're looking at, I believe that was rounded down from $10 million, I think that was an early estimate to the high six million for complete uh implementation for the entire department.

So we're still about three or four million uh short.

Short.

Yes.

Great.

Uh understood.

Um that's good to know.

Uh we'll make note of that.

You're roughly about three.

Great.

Thank you.

And uh uh Vice Chair Dorsey.

Sure.

Thank you, Chair Chan.

This is good news, and I just wanted to be added as a coastmaster.

Uh great.

And with that, let's go to public comment.

Uh thank you.

Uh we are now open public comment for this item number four.

If we have any members of the public who wish to address this committee.

Madam Chair, we have no speakers.

Seeing no public commons, public comment is now closed.

Uh colleagues, I would like to uh move this item to full board with recommendation and a roll call, please.

And on that motion to forward to the full board, the positive recommendation.

Vice Chair Dorsey.

Dorsey, I, Member Chen, Chen, I.

Chair Chan.

I.

We have three ayes.

The motion passes.

Thank you.

And uh Mr.

Clerk, please call items five and six together.

Yes, item numbers five and six are resolutions authorizing the fire department to enter into cooperative agreements uh with the California State Department of Forestry and Fire Protection.

Uh effective upon execution of the respective agreements.

Item number five is for the firefighter property program, under which the department may receive temporary loans of property in providing fire and emergency medical services, including disaster relief activities for an initial term of three years.

And item number six is for the federal excess personal property program, under which the department may receive temporary loans of equipment for fire suppression, pre-suppression uh use for an initial term of five years.

Madam Chair.

Thank you.

And again, we have the fire department here.

Good morning, supervisors.

I'm assistant deputy chief Mark Casper, San Francisco Fire Department uh Director of Training, and uh requesting acceptance on these two resolutions for our federal access programs.

These programs uh are something that we were enrolled prior, but due to the changes in city government and San Francisco Fire Department command staff, Calfire has asked us to re-enroll.

Uh in the past, we've been able to obtain uh a forklift with an extending boom and a small motorized utility vehicle, both used at Treasury Island training facility.

Uh with these uh federal access programs, there's a website very similar to Craigslist or a Facebook marketplace.

We're able to see um obtainable equipment, building materials, and vehicles which are free of charge.

There's uh two different sub-programs with the federal access programs, which is the FEPP federal access personal property, and FFP Firefighter Property Program.

So the FEPP uh Calfire, which is sponsored by US Forest Service, will loan us property in which we are allowed to modify as needed.

Uh we are responsible for pickup and maintaining the equipment or vehicles while under our use.

Uh they will pick up the property when we are done uh with its use if needed.

The FPP is through approval of the U.S.

Forest Service.

We are basically given the equipment after we're loaned it for a year.

Uh and these can be vehicles or building materials, which we are responsible for pickup of the items as well.

This program has been very advantageous to us in the past, and our plan is to enhance our use in this program to obtain items free of charge, which will save our city money and provide low-cost training opportunities, especially by obtaining building materials that will be demolished in our fire suppression or special operations training, which creates very realistic training for the fire department.

It's uh it's been it's been a wonderful opportunity we've used in the past, and it'll it'll really help us get what we need to uh continue uh our excellent training program.

Happy to answer any questions if anybody has any.

Um just out of curiosity.

Uh, where do you store them?

The equipment.

So the equipment is all depending w what items we get.

Uh, uh we keep them over at Treasure Island Training.

We kind of have a surplus of equipment, but there are some opportunities to to also get some vehicles like just an example.

If if we wanted to get like a tow truck uh for those very few times we may have to pull an electric vehicle out of a garage in a building fire or something like that.

Um, these vehicles brand new can cost a lot of money, but if we're able to obtain something that's a couple years old, that runs pretty good.

Uh this will help us the very few times in your a year where we need something like this.

So, all depending on what the item is, we'll we'll store it in the correct place.

Thank you.

It takes the firefighters to do this work.

I appreciate I appreciate it to be able to be like so thoughtful.

Um, we we appreciate that.

And then so with that, let's go to public comment on these two items.

Thank you.

Thank you.

Yes, we are now opening public comment for both these items five and six.

If we have any members of the public, who wish to address this committee?

Madam Chair, we have no speakers.

Seeing no public comments, public comment is now closed.

Colleagues, I would like to um move these two items to full board with recommendation and a roll call, please.

And on that motion, forward both resolutions to the full board with a positive recommendation.

Vice Chair Dorsey.

I Dorsey, I.

Member Chen.

Chen, aye, Chair Chan.

I Chan, I.

We have three ayes.

The motion passes.

Thank you.

And Mr.

Clerk, please call seven item seven and eight together.

Item number seven and eight.

Item number seven is an ordinance appropriating approximately 5.7 million, consisting of 5.5 million from the issuance of Treasure Island Infrastructure and Revitalization Financing District Number 1 Tax Increment Revenue Bonds, and approximately 269,000 accumulated interest earnings from the series 2022 B, and series 2023 Treasure Island IRFD bond to fund affordable housing projects to the mayor's office of housing and community development, and placing these funds on controllers reserve pending the sale of the tax increment revenue bonds and receipt of proceeds and fiscal in fiscal year 2025 to 2026.

And item number eight is a resolution supplementing resolution number seven-seventeen and authorizing the issuance and sale by the city and county uh of San Francisco infrastructure and revitalization financing district number one, uh Treasure Island of one or more series of bonds and an aggregate principal amount not to exceed 31 million, approving an official statement, one or more supplements to indentures of trust and continuing disclosure certificates, one or more bond purchase agreements with a joint exercise of powers authority and the bond underwriter and other related documents as defined therein and making other related determinations also as defined.

Madam Chair.

Thank you, Mr.

Clerk, and today we have the Treasure Island Development Authority here.

But before that, if I may, um, I would like to um call on uh Vice Chair Dorsey to make opening remarks.

Great.

Thank you, Chair Chan.

I want to first thank you, Chair, uh, for your support last year in my office in collaboration with the mayor and um the Office of Economic and Workforce Development.

Brought forward amendments to the Treasure Island Development Agreement to help jumpstart the redevelopment and fulfill the uh decades-long vision of a thriving mixed-income community.

Um that legislation laid the groundwork for the issuance of a general fund uh certificate of participation.

Um as you'll see in the presentation, tremendous progress is being made on housing infrastructure and parks, and this bond issuance is a key step both to fund a 100 unit senior affordable housing project and support pre-development work for future housing development and parks.

Uh in addition to everyone at OEWD, I want to thank Bob Beck and the staff at TIDA for all of their work as well as the controller's office for the great work that they do on this and so many other things.

Uh, I'm proud to be a co-sponsor, and I hope it will earn everyone's support.

Thank you.

Thank you.

And please go ahead.

Thank you.

Good morning, supervisors.

My name is Jamie Kerbin with the finance manager with the Treasury Island Development Authority.

I'll be presenting a brief update on the Treasure Island Development Project and highlight uh some key terms related to the financing.

Um the legislation before you includes a resolution to authorize the issuance of tax increment bonds and the amount not to exceed $31 million for the Treasury Island Infrastructure and Revitalization Financing District, otherwise referred to as the Treasure Island IRFD, as well as an ordinance to appropriate a subset of approximately $5.8 million of the IRFD bonds to be used on affordable housing.

As part of the DDA signed in 2011, the project contemplated the formation of the IRFD, which was later formed in early 2017.

Since then, the IRFD has issued two bonds issuances totaling approximately $38 million, in addition to approximately $100 million issued from the Treasure Island Community Facilities District, or CFD.

Most recently, as Supervisor Doris mentioned, the city adopted an amended and restated DDA, which authorized an additional 115 million dollars in certificates of participation, or COPs, in which the city sold its first $50 million tranche in March of this year to support stage two infrastructure.

In terms of an overall project update, this bond issuance comes on the tail of a very exciting completion of stage one infrastructure on Yerba Buena Island and Treasure Island, including a complete suite of streets and utility infrastructures, seven new parks, two public park installations, and a new ferry terminal.

The next stage of development, stage two, commenced in 2022 and is expected for completion in 2028.

We are also very proud of the progress the project has made on delivering a total of 974 new units of housing to the city, including 297 affordable units.

Looking ahead, the stage two infrastructure underway will support three additional projects, a 240-bed DPH-owned behavioral health facility, a 100 unit permanently affordable senior housing project, and a 150 unit permanently affordable family housing project, all three of which are currently under predevelopment.

The proposed IRFD bond proceeds will reimburse a developer for qualified project costs incurred to date, including certain geotechnical work, demolition and abatement work, pre-development costs, permit fees, subsidy payments, and the construction of public parks.

For the housing bond component, TIDA has worked closely and collaboratively with the mayor's office of housing and community development to dedicate the IRFD sources to partially fund Treasure Island Parcel E 1.2 senior, which is a project with a hundred unit senior affordable housing project located on Treasure Island.

Based on market conditions as of August of this year, the controller's office of public finance estimates the 30-year financing with a true interest cost of 5.84%.

This results in project funding of approximately $22.6 million, financing costs of approximately $931,000, and total debt service over the life of the bonds of approximately $55 million.

The controller's office plans to price and close the transaction before the end of the calendar year.

The IRFD bonds will be sold without a rating or non-rated.

The preliminary official statement, referred to as the POS, is the main disclosure document for the transaction, which details bond terms, security, and key res key risks investors should be aware of.

These risks include the possibility of reduction in tax base and assessed values, concentration of property ownership, and the risk that planned developments may not be completed as expected.

As a reminder, the IRFD bonds are not obligations of the city's general fund.

They are pledged, they are secured by pledged tax increment generated by properties located in the IRFD.

The San Francisco Board of Supervisors governs the IRFD, including approving the issuance of bonds and the preliminary official statement.

Under securities laws, policymakers are required to share any material information that could impact the IRFD's ability to repay the bonds.

Prior to publication, the POS will be thoroughly reviewed by TIDA, city staff, and advisors to ensure it reflects the most accurate information.

I'm happy to answer any questions you may have.

We also have staff from the controller's office of public finance and MOCD present to answer any questions.

Thank you.

Item 7 and 8 are two pieces of legislation pertaining to new debt secured by property tax on Treasure Island.

One is a resolution that would approve a $31 million bond issuance, and one is an appropriation ordinance of $5.8 million.

As we summarize on page 16 through 18 of our report of the $31 million bond, $20.7 million will be used to reimburse the developer for infrastructure cost that they've already incurred.

And then the $5.8 million appropriation pertains solely to the portion of the bond that will be used for to fund an affordable housing project on Treasure Island.

A portion of that $5.8 million includes new bond proceeds and then accumulated interest from prior bond proceeds.

And we showed the detail of the breakdown on page 17 of our report.

Total debt service for this new $31 million debt is $55.1 million.

And again, that's paid solely by uh property tax uh revenues generated within Treasure Island.

We recommend approval of item seven and eight.

Thank you.

And uh I don't have additional question.

Uh thank you so much for your work on this.

It's very impressive to see the developments on Treasure Island, it's very exciting to see the housing.

I think both affordable, like that's really um happening on on site, and I look forward to visit it again soon.

Um and so with that, let's go to public commons on these two items.

Yes, if we have any members of the public who wish to address this committee regarding both these items seven and eight, now is your opportunity.

Madam Chair, we have no speakers.

Seeing no public comments, public comments now closed.

And colleagues, uh, I should say uh Vice Chair Dorsey.

What would you think thank you, uh Chair Chan?

Um, I would like to make the motion to move this forward to the full board with our positive recommendation.

Thank you.

Uh both items and uh with that a roll call, please.

And on that motion by Vice Chair Dorsey that we forward both items to the full board with a positive recommendation.

Vice Chair Dorsey, Dorsey, I, Member Chen.

Chen, I, Chair Chan.

I Chan.

Aye, we have three ayes.

The motion passes.

Thank you.

The motion passes, and then now Mr.

Clark, please call item number nine.

Item number nine is a resolution approving and authorizing the mayor and the director of the mayor's office of housing and community development to execute loan documents relating to a loan with Meta Procedida Small Properties LLC in an amount not to exceed approximately 37.8 million to finance the acquisition, rehabilitation, and permanent financing of 15 multifamily rental housing buildings for low to moderate income households, consisting of a total of 89 residential rental units and nine ancillary commercial units located at 3329 to 3333 20th Street, 3182 to 3198 24th Street, 3353 26th Street, 1500 Courtland Avenue, 35 Fair Avenue, 3840 Folsom Street, 642 to 646 Guerrero Street, 63 to 67 uh Lapage Street, 2217 to 2221 Mission Street, 3800 Mission Street, 19 to 23 Presida Avenue, 344 to 348 Presida Avenue, 269 to 271 Richland Avenue, 380 San Jose Avenue, and 20 and 1015 Shotwell Street, pursuant to the small sites program, affirming the planning department's determination under the California Environmental Quality Act, adopting findings at the project and proposed transactions are consistent with the general plan and the eight priority policies of the planning code and authorizing the director of MOCD or his or her designee to execute the loan documents for the project and make certain modifications to such loan documents as defined and take certain actions in furtherance of this resolution also is defined.

Madam Chair.

Thank you.

And today we have the Mayor's Office of Housing and Community Development here.

Good morning, Chair Chat.

Chair Chan, Vice Chair Dorsey, and Supervisor Chen.

My name is Amanda Fucatomi Lopez, and I'm a preservation project manager at the Mayor's Office of Housing and Community Development.

I am pleased to present item number nine, the funding requests for the 15-site Meta bundle.

Sponsored by the Mission Economic Development Agency or Meta, the Meta bundle is a bundled refinance and rehabilitation of 15 of Meta's earliest small sites program properties, including 3329 20th Street, 3182 24th Street, 3353 26th Street, 1500 Courtland Avenue, 35 Fair Avenue, 3840 Folsom Street, 642 Guerrero Street, 63 Lapage Street, 2217 Mission Street, 3800 Mission Street, 19 Presida Avenue, 344 Presida Avenue, 269 Richland, 380 San Jose Avenue, and 1015 Shotwell Street, totaling 89 residential units and nine commercial units.

Thank you.

The request before you is for the approval of the consolidation of up to 31,580,766 in existing small sites program funding across the 15 sites and up to an additional $6,240,000 in new small sites program funding.

The project will also receive a $13 million first position loan from the Bank of San Francisco to support the refinancing of the project's existing first position mortgages.

The bundling of the properties will allow for the refinance of existing first position mortgages, support economies of scale and stabilize operations, provide for rehabilitation at 14 of the sites, replenish operating reserves and replacement reserves, and extend affordability restrictions across all 15 sites.

The Meta bundle is a bundle of 15 of Meta's earliest small sites acquisitions with acquisition dates ranging from 2015 to 2017.

Because at the time of acquisition, the city did not yet have the preservation and seismic safety loan program.

All 15 sites were acquired with first position loans from private lenders.

These first position non-city loans range in terms with many loans either coming due or set to have an increase in interest rates over the next several months, requiring the need to urgently refinance the properties.

Additionally, the properties have had trouble cash flowing over the past few years, primarily due to variations from initial underwriting, increased operating expenses, high debt service payments, and high and prolonged vacancies.

On their own, SSP properties, especially those with very low unit counts, can experience cash flow challenges when there are prolonged vacancies or large swings in income and expenses.

And the sponsor believes with the project's re-underwriting, bundling the 15 properties can improve financial sustainability, namely the mix of properties provides a high enough number of units and varied enough building typologies for the bundle to mitigate unexpected cash flow swings at individual sites and achieve operational efficiencies.

To mitigate against risks, Meta explored different iterations of the bundle, analyzing outcomes for smaller versions with different combinations of properties.

Ultimately, Meta decided that the 15-site bundle was optimal due to size and to the financing terms that were only available for a larger bundle.

To bundle and refinance the 15 sites, the project's existing 31.6 million in principle from existing SSP loans will be consolidated and recast with SSP's standard loan term of 40 years and 3% interest with residual receipts payments.

The project will also require a $13 million first position Bank of San Francisco loan.

The Bank of San Francisco loan is a 15-year loan with the first 10 years fixed at an interest rate of 5.25%.

And acknowledging that the Bank of San Francisco loan is only fixed for 10 years, Meta will develop a long-term sustainability plan for the bundle, which will address the historic challenges of the bundle and guide its recapitalization strategy.

The Bank of San Francisco loan will be used to support the refinance of existing debt, while most CD's SSP upsides will be used to support the project's rehabilitation, reserve replenishment, other sub-soft costs, and a portion of the refinance.

The bundle has been entirely re-underwritten from during this refinancing effort.

The re-underwriting is based on project actuals with more conservative underwriting assumptions, including a 1.15 DSCR and 10% vacancy loss assumption and more conservative rent assumptions.

As a result, as a result of this process, the project's annual debt service will be reduced by approximately $340,000.

And with stable vacancy in the Bank of San Francisco's debt service assumptions, the project is poised to cash flow through at least year 10 or longer if the same level debt service is maintained.

In connection with this refinancing and bundling event, 14 properties will undergo some amount of rehabilitation related to life safety andor immediate needs.

These needs are a combination of work identified in the individual CNAs provided at acquisition and needs that were not identified in those capital needs assessments at acquisition, but are now considered immediate.

While it is not typical for a project to undergo rehab after 10 years, the circumstances of the bundle are unique.

As some of the earliest small sites, these buildings had some of the leanest capitalized replacement reserves, and the reserves were depleted more quickly due to unforeseen capital needs and due to cash flow challenges at the sites that did not allow for the replenishment of reserves as modeled at acquisition.

The bundle now has a varied scope of work across 14 sites that addresses unforeseen needs and immediate needs previously identified, including exterior siting repair, window replacement, electrical upgrades, roof replacement, and unit repairs, among other items.

The rehabilitation is expected to begin in spring 2026 and be completed in spring 2027.

Approval of this request will allow for the refinance and stabilization of the 15 sites, the rehabilitation of 14 properties, and improvement in the resident quality of life, and improved organizational outcomes and stability.

Thank you for considering the request for the consolidation and upsize of the SSP loan for the Meta bundle, which supports the stabilization and future of the 15 sites, and in turn the sponsor's SSP portfolio.

I am joined today by Jackie So, MOCD's Director of Multifamily Asset Management and Preservation.

Sheila Nicolopoulos, Mos CD's director of policy and legislative affairs, as well as Daniel Cruz, the Meta bundle project manager, and Jose Garcia, Chief Real Estate Officer on behalf of Meta.

We are happy to answer any questions that the committee may have.

Thank you.

Thank you.

Item nine is a resolution approving a new loan agreement between the Mayor's Office of Housing and Mission Economic Development Agency.

The loan has a 37.8 million dollar value and will be used to refinance and rehabilitate 15 properties that are owned by Meta.

We show the properties on page 29 of the report and the rehabilitation work on page 31 of the report.

On page 26, you can see how this money will be used.

The bulk of it is just to refinance existing city debt.

So 31 million dollars of this loan will be to refinance outstanding city debt.

2.7 million dollars will be used for rehabilitation.

2.1 million dollars will be used to fund reserves for maintenance at these sites, and then 1.3 million dollars will be used for to pay down private debt that Meta's taken on related to this portfolio.

We also know that the city may have to step in with another refinancing in 10 years based on the cash flow projections for this for these properties, but we recommend approval of item nine.

Thank you.

I think these are really these are really critical sites to stabilize the city's um tenants, especially those who are really low income and most vulnerable.

Just overall, then you know, as the budget and legislative analyst report has indicated.

Uh I'm glad that we were doing this and really helping and support Meta and really and as today's rest of the agenda to kind of uh help our nonprofit um housers and figuring out their finances and stabilizing their operation consistently.

Um, but we know that there's more need to be done.

So today I have two questions.

One is about Prop G, which is the rental subsidy distribution.

If you can provide a little bit of update, help us understand just where are we at with the tenants' rental subsidies, which I think in return uh work with our nonprofit housers.

And then I think the second questions I have is that given this uh refinancing um management, I should say, in partnership with Meta.

Um, do we see this as more of these actually will will come with other nonprofit housers, or maybe I don't understand it correctly, and maybe I don't understand it well, but I would love to have some explanation or or help me understand.

We'll take this in two parts.

So I think the first question was around Prop G, and just to clarify, Prop G is not um funding any part of this particular refinance that's before you today.

So the Prop G we issued per the legislation we were required to issue a memo outlining recommendations and considerations, which we did this summer, and we anticipate releasing ANOFA to call for projects to apply for the funds by the end of the year for Prop G.

So we're not there yet, is what you're saying.

That the Prop G.

So I'm just trying to it's not out in the world yet, but it will be soon.

And and as soon as sometime this year or next year, um, the funds will probably be deployed next year, but we'll be working to identify projects at the end of this year, beginning of next year.

Understood, and then so then the distribution will be first quarter?

Probably okay, yeah.

I would love to track that.

Okay.

So happy to provide you with more information as we get that.

Thank you.

And then second piece is just generally speaking, you know, seeing that this is important.

I think that uh again, maintenance has always been difficult, meaning um maintenance has always been difficult for our nonprofit housers to maintain and operation, and you know that that requires the tech like occupancy and tenants who paid their rent, all that uh add up together.

So help us understand your approach.

Uh thank you for that great question, Chair Chan.

Um I'm Jackie Zhou, director of multifamily asset management and preservation at Mo CD.

This is my first time before you today in my current role uh with preservation added to my my team, so I'm very happy to be here.

Um you know, this is a really great question, and it's been a really challenging time for affordable housing across the nation.

San Francisco is no exception.

Um we've seen that post-pandemic, our affordable housing providers have continued to struggle to keep up with uh escalating expenses, operating expenses, folks are still struggling with uh tenants paying rents.

Um, these these have uh you know uh been going on for many years now, and small sites as a program has also I think had the added challenge of having higher AMI units, which as you know, during the pandemic, we've seen um declines in rental uh rental rates uh here in San Francisco, and that's just made it more challenging to fill vacant units.

Um I'm really happy to say that Meta as an organization has put in a lot of resources recently.

Mo CD has put in a lot of support to support Meta and filling their vacant units, and that is a very critical step in all of this in stabilizing in generating the revenues needed to sustain these properties to upkeep maintenance.

Um you saw in the BLA report there were uh the vacancy rate was in the 13% range.

Um they've been able to get that down to about seven percent.

It's amazing.

So they're they're headed in the right direction.

I think you know, we are we're all doing our best to um uh to support our non-profit organizations because, as you said, they are providing a critical resource to our San Francisco tenants.

So um hope that helps to answer any some part of your question.

Do you do you have other specific questions about about Meta or not?

I don't think it's about Meta.

I think just just general speaking that I concur.

I mean, I think we all can see that the environment has been challenging.

Yes.

And so, and here clearly is that the plan is we hope to be able to sustain for the next decade, which is a long time.

Yeah.

But I think a decade, I think is that in the next few years, how do we proactively to strategize a sustainable funding source, an ongoing funding source, not just for Meta, but really generally across the board for all the nonprofit housers, which is you have more to come in the in on the even just on the agenda today, you know, maybe different different ways of, you know, be it loan agreements and different kind of options with different houses, but just kind of wanted to understand that you know what is ultimately a strategic approach to be able to provide sustainable funding source to support them.

I think Prop G is it's one of the good step of like we recognize that you know um rental subsidies is part of the operations challenges for for our nonprofit housers.

So let's think about set aside of those funding for specifically rental subsidies, but we do know a maintenance like HVAC and all these things that that Meta is actually trying to do here, which is really needed for safety.

Um those are critical things that we do want them to do, and you know, not to mention that previously we dedicated it's a different, you know, different subject and different sets of housing, uh, you know, for SRO for elevators, but but all which is to say is we've been long recognizing that our nonprofit housers, some of our SRO sites that which we hold master lease of or not, really in need of capital improvements.

For sure.

And so, like, what do we do for ongoing basis?

I think what I'm trying to get at is eventually if we're coming to be a uh could it be a EIFD conversation or could it even be a bond conversation that I would like to get MHCD to start making calculation, identifying like the needs and help us identify what capital improvements actually look like.

What we have been doing for the last especially affordable housing bond, it has been really like what are the new housing that we can do.

We actually, in the I think from the previous one in the 2024 in March, we actually have dedicated some funding for uh rehab and and for about I think a thousand units.

Um but again the question that I have is then you know, if we if we're gonna move forward with more, be it regional or local housing bond, would love to get a better understanding of assessments of needs and then the dedicated uh funding that we must have.

Bond is still one-time fund, technically, um, so so what else do we actually need to do?

These are these are fantastic questions, and I so appreciate you raising them.

I'm not the best person to answer, but uh uh because I I don't do the the financing aspect of it, but I'll just speak to some of it.

I mean, um I think you're highlighting two two different uh very important um pieces.

One is the operating subsidies needed to um to help support affordable housing, um, and that's Prop G and other uh other subsidy programs.

You're also highlighting the critical need for capital repair um funds and um you know we are you know for meta purposes looking at hoping they'll consider a resyndication using tax credits in the future.

Um that is uh pretty typical for a lot of our affordable housing portfolio, and there have been changes to the tax credit law recently that will hopefully open that up so that from a preservation perspective, tax credits could be more uh available to our existing portfolio projects for preservation.

That is very important.

Um at the same time, you know, there are going to be projects that need other sources of funding locally at the state level, and so it's it's often, you know, uh a puzzle and uh getting all the puzzle pieces to fit together to ensure that there's a complete financing package in order to move forward.

So we are definitely looking very closely at the uh preservation needs of our existing portfolio, reaching out to our um nonprofit sponsors to discuss where they have needs and how we can assist them in applying for tax credits and identifying other programs that could suit them.

Thank you.

That's a key piece.

I haven't really thinking been I've been thinking about many pieces, but I think tax credit is it's been on uh been put on back burner a little bit only because on a local level it's like not as easy to influence that, but that's a great great flag.

I appreciate that.

Thank you so much for answering my questions.

Thank you so much for all your work.

Uh, and with that, let's go to public comment on these items.

Yes, for your opening public comment for this item number nine.

If we have any members of the public who wish to address this committee, Madam Chair, we have no speakers.

Seeing no public comments, public comment is now closed.

Colleagues, I would like to move this item to full board with recommendation and a roll call, please.

And on that motion to forward to the full board to the positive recommendation, Vice Chair Dorsey, Dorsey, I member member Chen.

Chen, I, Chair Chan.

I chan I, we have three ayes.

The motion passes.

Uh Mr.

Clerk, please call items 10 and 11 together.

Yes, item numbers 10 and 11 are resolutions as it as it relates to a 136 unit multifamily rental housing project and property located at 297th Street.

Item number 10 authorizes the issuance and delivery of multifamily housing revenue bonds in one or more series in an aggregate principal amount not to exceed 60 million for the purpose of providing financing for the construction of the property, approving forms of the uh approving the forms of and authorizing the execution of an indenture of trust, providing the terms and conditions of the bonds, author approving the form of and authorizing the execution of a loan agreement, providing the terms and conditions of the construction loan from the city to the borrower, approving the form of and authorizing the execution of a regulatory agreement and declaration of restrictive covenants for the project, approving the form of and authorizing the execution of an assignment of deed and trust doc deed of trust documents, authorizing the collection of certain fees, approving for purposes of the Internal Revenue Code of 1986 as amended the issuance and sale of residential mortgage revenue bonds by the city in an aggregate principal amount not to exceed 60 million, approving modifications, changes and and additions to the documents, ratifying and approving any action heretofore taken in connection with the indenture of trust, the loan, the bonds, and the project, and granting general authority to city officials to actions necessary to implement this resolution and related matters as defined.

And item number 11 approves and authorizes the director of property in the mayor's office of housing and community development to enter into a ground lease for the real property with 1979 Mission Street PSH Associates LP as developer for a lease term of 75 years and one 24-year option to extend and an annual base rent of one dollar in order to construct the project, approving and authorizing an amended and restated loan agreement and an amount not to exceed approximately 61.2 million for a minimum loan term of 57 years to finance the development and construction of the project, approving and authorizing the director of property and Mo CD to enter into a license agreement for real property owned by the city with the developer for zero dollars for up to three years to allow construction staging for the project, determining that the less than market rent payable under the ground lease and license agreement will serve a public purpose by providing affordable uh housing for low-income households in need in accordance with the administrative code and adopting findings, declaring that the property is exempt surplus land pursuant to the California Surplus Lands Act, adopting findings at the project and proposed transactions are consistent with the general plan and the eight priority policies of the planning code and authorizing the director of property and or the director of Moe CD to execute the ground lease loan agreement and license agreement, make certain modifications to such agreements, and take certain actions in furtherance of the resolution as defined.

Madam Chair.

Thank you.

And again, we have the mayor's office of housing and community development.

Good morning, supervisors.

My name is Jenny Collins.

I'm a project manager with Mo CD.

We're here before you today for two resolutions related to the development of a new 100% affordable supportive housing project for formerly homeless households, commonly referred to as 2970 16th Street, located at 16th and CAP adjacent to the 16th and Mission Northeast BART station.

I am joined today by the co-sponsors of the project, Mission Housing Development Corporation and Mission Economic Development Agency, referred to throughout this presentation as Mission Housing and Meta, as well as colleague Emily Cohen from the Department of Homelessness and Supportive Housing.

Next slide.

Oh, one slide back.

Thanks.

Yes.

The first resolution authorizes issuance of tax exempt and taxable bonds not exceeding 60 million dollars to facilitate a construction loan for the project.

The second resolution authorizes three actions.

First, a ground lease to lease the city-owned property to 1979 Mission Street PSH Associates LP, which is a limited partnership jointly created by the sponsors to develop and own the improvements for up to 99 years, using similar terms for other city-funded new affordable housing communities.

Second, a city loan of up to 61,163,787 for a minimum loan term of 57 years to the limited partnership.

16 million dollars of this funding is state no place like home funding.

And finally, authorization of a license agreement for use of adjacent land owned by Mo CD for construction staging of the project.

Next slide.

Project history.

This project goes back to 2013 when a for-profit developer, Maximus Real Estate Partners, proposed a large housing project at 1979 mission, consist consisting of approximately 330 units of market rate housing and commercial space.

Between 2013 to 2022, the surrounding community, led by Plaza 16 coalition, rallied against the proposed development dubbed Monster and the Mission in favor of deeply affordable housing.

In March of 2022, community efforts proved successful, and Moe City acquired the property for future affordable housing project.

In 2023, Mission and Meta were selected as the co-sponsor of the project for a 2023 multi-site request for qualifications.

The proposed development outlined in the RFQ includes a 100% permanent supportive housing, the project seeking your approval today, and family housing, which will be developed at a later date contingent upon financial feasibility.

In May 2025, the planning department approved the permanent supportive housing project using California State Assembly Bill AB 2162, which provides ministerial approval for affordable housing projects that include supportive housing units.

In August 2025, the project was awarded tax exempt bond funding from SIDLAC and an allocation of low-income housing tax credits from the California Tax Credit Allocation Committee as a special needs project for formally homeless persons.

And on September 26, 2025, the Citywide Affordable Housing Loan Committee recommended approval of up to 61 163 787 in city financing.

Next slide, please.

The sponsor will develop 136 units of supportive housing for formally homeless persons using a mix of studios and one bedroom units.

Sorry, featuring a mix of studios and one bedrooms.

40 of the 136 units will be set aside for formally homeless households funded with state no place like home funds.

Over the next couple of years, HSH will be working with the project sponsors and other key stakeholders on the referral strategy for this building to create a balanced resident mix.

Individuals with higher acuity alongside those who have demonstrated some stability stability and can live independently.

The referral strategy will blend a neighborhood-focused strategy for the 40 NPLH units with options for current tenants stably housed in permanent supportive housing to transfer from other PSH programs.

The project will include rental subsidies from HUD in the form of restored rebuilt restore rebuild Section 8 vouchers, which will cover the debt service and operate and provide operations support.

In addition, the project operations will also be supported by the city's local operating subsidy program or LOSP.

This new PSH building will have 24-7 desk coverage.

Tenant services will be provided by Lutheran Social Services, and the building will also include a approximately 1,500 square foot behavioral health services center for building residents, staffed by a provider procured to be procured by the Department of Public Health.

Services will include primary care, access to physicians or nurse practitioners for general health assessments, chronic condition management, preventative care vaccinations and screenings, mental health support, individual therapy, counseling and psychiatric services to treat trauma, depression, anxiety, and other conditions commonly linked to homelessness, psychiatric assessment and intervention, treatment planning, development of individualized treatment plans for high-risk residents, trauma-informed care services will be rooted in trauma informed practices, acknowledging the emotional and psychological impact of homelessness abuse and adversity.

The services for the behavioral health space are being funded through a capitalized operating subsidy reserve, also referred to as a COSER, which is supported by state no place like home funds, totaling approximately 11.9 million dollars over a 20-year period.

The Department of Homelessness and Supportive Housing and the Department of Public Health have determined that this COSER funding will significantly help cover the operating costs of the behavioral health space.

This financial structure of leveraging state no place like home funds for services effectively alleviates the burden on HSH and DPH from having to fully fund those service costs themselves.

Next slide.

Financing.

Tax credits and partner equity of 42 million, and up to 45 million in city loans.

This is for your consideration today.

A crucial component of the project's financing involves both taxable and taxes and bond financing to preserve the 2020 to preserve the 2023 federal basis boost, which provides an additional 10 million in tax credit financing.

The bonds must be issued, and the project must close by December 12, 2025.

With your support, mission housing and meta look forward to demolition starting in December 2025, followed by construction and project completion in 2027, late 2027.

Next slide.

Thank you in advance for your consideration and support.

Here with me today are representatives from Mission Housing and Meta, as well as Emily Cohen from HSH.

We are available to answer answer any questions from the committee members.

Thank you.

Item 11 is a loan from the Mayor's Office of Housing to 1979 Mission Street PSH Associates LP, which is a joint venture of mission mission housing development corporation and mission economic development agency.

Mission Housing Development Corporation is owned by the lead developer for this building will be 100% permanent supportive housing.

It will have 136 units.

There are two, there's room on the land to build two other buildings that will be affordable housing, but the developer is still securing financing for those sites.

This project will be built over the next year, with lease up expected by June 2028.

The uh as we show on page 37 of our report, the total development costs is 117 million dollars.

Uh this loan includes a 16 million dollar state loan as one of the funding sources, and the remaining 45 million dollars are funded by the housing trust fund, development impact fees, and other local sources.

So the city's subsidy per unit in this case is about $330,000 per unit.

In addition to subsidizing the development, the city will incur ongoing operating costs for this site in the form of supportive services funded by HSH, rental subsidies funded by MOHCD, and then a behavioral health center that will have primary and behavioral health care for residents that will be funded jointly by MOHCD, DPH, and HSH.

We detail those costs in our report, and those costs are built into the department budgets going forward.

We recommend approval of item 12.

11, I mean.

Thank you.

I think this is a question more for um Department of Homelessness and Support of Housing.

Just wanted to understand the behavior how programming on site and what that actually looks like, and is that part of the investment that the mayor has all been talking about breaking the cycle and just kind of help us understand that?

Thank you.

Thank you.

Good morning, everyone.

Emily Cohen with the Department of Homelessness and Supportive Housing.

And the behavioral health component of the services that are being offered that are in planning for this site, involve both uh primary mental health care as well as substance use disorder treatment as needed by the residents of the property.

This will be a partnership and a collaborative effort.

This is part of our effort to infuse clinical care wherever possible in our system and to help ensure that we are meeting people where they are to get the health care that they need to thrive in the community.

And we're really excited about this multi-departmental collaboration.

We are many years away from opening the site at this point, so program design is still under development, but that is definitely the intent.

Thank you.

Thank you.

Um great.

I don't have any other additional questions.

Let's go to public comment on these two items.

Yes, we're now opening public comment.

If we have any members of the public who wish to address this committee regarding both these items 10 and 11.

As soon as the first speaker steps up, I'll start your time once we begin speaking.

Hi, am I at the right mic here?

Um hi, I'm Shannon Dodge.

I'm here on behalf of BART.

I work in BART's transit-oriented development group, and I'm here to express Bart's strong support for this project, which will abut our 16th Street Mission Station, specifically the Northeast Plaza.

The properties that wrap around the Northeast Plaza at 16th Street Mission Station have been vacant and boarded up for years.

And BART has been collaborating with Mo CD and the developers and architects of this project because we know that active uses facing our station plazas contribute to a more welcoming 16th and mission area for everyone, including our transit riders, and supports our ridership return.

We at BART are also happy to see that this first phase of the project will address a critical need by housing formerly homeless residents and providing them with supportive services.

So I urge you to vote in favor of the bond issuance that will make this important project possible.

Thank you.

Thank you much, Hen Dodge.

Next speaker.

Good morning, supervisors.

First and foremost, thank you for your time and your attention to this matter.

My name is Jesus Mendoza, and on behalf of the Carpenters Union, I am here representing thousands of carpenters and their families here in the city of San Francisco.

For almost a decade, we have been part of the community organizing for housing at 16th and mission.

There's probably no better place in San Francisco for the development of responsibility of responsible responsibly built high quality affordable housing.

Local 22 and our members have worked with mission housing on developments throughout this uh throughout the city over the years.

Our members, many who live in the mission, are ready and eager to get to work on this project as this project will support high quality union jobs, employee apprentices, and open up more training opportunities for local residents and deliver much needed affordable housing as well.

We respectfully uh we respectfully request your support for this item and to keep this project's momentum going.

Um, we thank city staff, Mission Housing, and the supervisors for all of your hard work to get us to this point.

Thank you for your time, and we look forward to the building and we look forward to building the affordable housing our community desperately needs.

Thank you.

Thank you, Jesus Mendoza.

Next speaker.

Good morning, supervisors.

Uh Gary McCoy.

Uh, believe I know all of you, and I think I think you many of you know my story.

Uh I'm a person who experienced homelessness through my 20s uh in San Francisco, and I was very fortunate that there was a ladder out of homelessness that existed for me.

I was able to go from the streets and shelters to treatment to uh transitional housing, support permanent supportive housing, uh, and then market rate uh rental unit sense.

For me, one of the biggest pieces of that ladder that were the most impactful was permanent supportive housing.

It gave me a sense of independence, a sense of community.

Uh I didn't feel like I was being ushered into temporary housing solutions.

Uh, it allowed me to ultimately focus on myself, my own recovery from substance use disorder, and start working towards uh uh coming off of disability and working full-time uh and going going back to school for uh a few classes here and there.

As you can see by the timeline and the history of this project, like these projects take so long to get through the process, and they're incredibly challenging to get funded.

I mean, the financing pieces around affordable housing and permanent supportive housing are one of the biggest hurdles to getting these projects going so that we can move folks in and off the streets.

Uh, I urge your uh support for this and recommendation for the full board.

Thank you.

Thank you much, Gary McCoy.

Next speaker.

My name is Ruth Ferguson, and I'm here on behalf of District 9 Neighbors for Housing.

Twelve years ago, the mission community began rallying against proposed market rate housing on this site.

They organized for years, demanding passionately that what the neighborhood truly needed was affordable housing.

Their advocacy worked, and in 2023, Meta and Mission Housing took on this 100% affordable housing project.

Now in 2025, the project is ready to break ground at the end of the year.

Over the past two decades, the mission has lost thousands of low-income families due to displacement and rising costs.

Projects like LaMara Villa are critical if we want to reverse that trend.

With over 350 units, including critically needed permanent supportive housing, this project will bring refuge to hundreds of working people, families, seniors, and unhoused neighbors in San Francisco.

This isn't just another housing project.

It's a promise kept to the community that fought for it.

And it's needed now more than ever.

Trump is threatening to send the National Guard into San Francisco and ramp up ice raids that already terrorize our neighborhoods, especially the mission.

If we don't support projects like La Maravilla in this moment, then what do we stand for?

How can we call ourselves a sanctuary city when the very people who need sanctuary can't afford to live here?

The Marvel's first phase will focus on providing permanent supportive housing and will provide people who have the greatest need with stable affordable housing and on-site support services.

Research shows that PSH is not only cost-effective to our government, but also transformative for the people who benefit from it.

And we've, you know, heard some of those stories today.

I urge you to approve this gap loan and let construction start this year.

Every month of delay, it means more people without homes and more families pushed out.

This is more than about than just housing.

It's about community trust, dignity, and the future of the mission.

Approve this loan for working families, for our unhoused neighbors, and for a San Francisco that still has the courage to live up to its values.

Thank you.

Thank you much, Ruth Ferguson.

Next speaker, please.

Good afternoon, Supervisors Whit Turner on behalf of the Housing Action Coalition.

San Francisco's housing crisis is still pushing families and workers out every day.

La Maravilla is what real solution looks like.

136 permanent, affordable homes built with and for the community.

We are excited about this first phase that will provide PHH housing for formerly unhoused neighbors, not just shelters, not temporary fixes, but real homes with on site care and support.

Projects like this just aren't just moral imperatives.

Their House San Francisco meets its state mandated housing goals.

Every affordable unit we move forward helps the city close the gap towards its goals and towards its target number of homes by 2031.

Advancing La Maravilla shows that the city isn't just planning on those goals, it's delivering on them.

Every month of delay costs the city more and leaves more people without a home.

So I urge you to please vote yes on this project.

Approve this loan for La Marilla Maravilla to move forward for the mission for our neighbors and for all of San Francisco.

Thank you.

Hi, good morning, supervisors.

Uh, my name is Tania Estrada, and I am the executive director at the women's building, a long-standing community anchor in the Mission District.

San Francisco's housing crisis continues to displace women, working families, seniors, and our own house neighbors, especially in the mission where thousands of low-income households have already been pushed out.

Projects like the Maravilla are exactly the kind of community rooted solutions we need.

This project represents over a decade of organizing and advocacy from mission residents and community organizers, myself included, who have been clear about what they want, what we want, what the community wants.

Deeply affordable homes, housing with dignity for their own house, and the ability for families to stay in their neighborhood.

Permanent supportive housing works.

It saves lives, stabilizes communities, and reduces public cost in healthcare and emergency services.

Approving this gap loan ensures construction begins this year and keeps San Francisco on track to meet its housing and equity goals.

These are the times to support this project that will provide not only housing but much more and a long-standing impact in the community.

For all of these reasons, we urge you to approve this loan and move La Maravilla forward for our community.

Thank you.

I will be interpreting for a couple of families.

Okay, my name is Daily Corea.

So madre soltera con dos niños, my esposo morio, y yo trabajo para formar, para formar a mi familia.

Projectos.

The padre de cabeza de familia.

Gracias.

Good morning, supervisors.

My name is Dairy Correa.

I am here in representation of a group of parents from the organization Faith in Action.

I work with them in multiple projects.

I am a single mom of two children.

My husband died, and I work hard to sustain my family.

I'm in support of more affordable housing.

As is it is very hard to be a single parent.

Thank you.

Thank you much.

Next speaker.

In lo personal, soy beneficiary of the camion mi vida, not solo my video, sino la de my family completamente.

Gracias.

Good after good morning.

My name is Fabio La Torres.

I am part of this community and also a project neighbor.

Every day I see the great need of people in the community to have a stable and dignified home.

And I have personally benefited from having affordable housing for not only for me but also for my children.

Thank you for your support.

And thank you much next speaker.

Hola, my name is Madeline Chacon.

Soy una beneficiaria de una loteria de apartamentos.

Gracias.

Good morning, my name is Madeline Chacon.

I was a beneficiary of the housing lottery.

I'm happy for this opportunity, and I support this project so that other families can also live in dignity.

Thank you.

If we have no other speakers, actually to prevent these awkward pauses, if uh we have any other speakers, please line up.

Uh yeah, good morning, supervisor Dairo Romero, a mission resident.

One of the person with many people who follow the monster in the mission.

We are very close to get to the marble.

Please support that.

Affordable housing is costly, like any of housing.

The such is uh I I just want to congratul and and support Supervisor Chan, who has been also advocating for homeless families and go the uh uh 30 million in subsidies.

We need to continue doing that.

There is a big nick.

We don't want to see people in the street having all those issues.

Uh this part of the process the phase one is a project that require more support and more uh uh additional services and the community is supporting that and we want to continue moving and having more affordable housing in the mission district.

Thank you.

Thank you much for addressing us, Kabir.

Good morning, supervisors.

Uh, thanks for having us here.

I'm Sam Moss.

I'm the executive director of Mission Housing Development Corporation.

I'm uh obviously speaking in favor of the project.

Um I actually just want to take a brief moment to thank the mayor's office of housing and department of homelessness.

Uh it is really hard to build these things, and it would be impossible without the support of those two organizations as well as the rest of the city staff.

But um, you know, so thank you very much.

It means a lot to have your support, and I hope that you vote yes.

Thank you.

And thank you much, Sam Moss.

And Sherry seeing no other speakers that completes our queue.

Seeing no uh no more public comments, public comments now closed.

Um colleagues also, and just for the general public too, I also do want to flag the um the item is also um particularly item 11 is also co-sponsored by uh Supervisor Jackie Fielder.

Um so clearly there's also half the district supervisor support, and so with that, uh I don't see any other name on the roster.

Uh colleagues, I would like to make the motion to move these uh two items to full board with recommendation and a roll call, please.

And on that motion to forward both items 10 and 11 to the full board with a positive recommendation.

Vice Chair Dorsey, and Dorsey I.

Member Chen.

Chen, I.

Chair Chan.

Aye.

Chan, I, we have three eyes.

The motion passes.

Mr.

Clark, please call item number 12.

Yes, item number 12 is a resolution authorizing the mayor's office of housing and community development to execute the standard agreements with the California Department of Housing and Community Development under the affordable housing and sustainable communities program for a total award of approximately 45.7 million, including 33 million dispersed by Cal HCD has a loan to the Balboa Gateway LP as developer for a 100% affordable housing project, had 11 free to Cal Oway, and approximately $12.7 million to be dispersed as a grant to the city for public transportation improvements near 11 free to Calaway for the period starting on the execution date of the standard agreements through November 30th, 2043, authorizing Mo CD to accept and expand the grant of up to approximately 12.7 million for transportation, streetscape, and pedestrian improvements and other transit oriented programming and improvement as approved by Cal HCD.

Madam Chair.

Thank you.

And again, we have Mayor's Office of Housing and Community Development here.

Thank you.

Good morning, Chair Chan and committee members Dorsey and Chen.

Uh my name is Andrew Strong and I'm a project manager at MOCD.

I'm here to present on item 12, file number 251006 for a resolution to execute the standard agreements with the California Department of Housing and Community Development.

Uh under the Affordable Housing and Sustainable Communities Program, ASIC, for a total award of uh 45,721,399, including uh 33 million dispersed by HCD as a loan to the Balboa Gateway LP for a 100% affordable housing project at 11 Free to Cala Way, also known as Building A, and 12,721,399 to be dispersed as a grant to the city for public transportation improvements near building A.

This resolution, um, if this sounds familiar, it's because it is.

This resolution had been adopted by the board uh May 6th, 2025 and approved May 12th, 2025.

Is file number 250 393 with resolutions for Balboa reservoir infrastructure and building E.

This resolution fixes a clerical error where the notice of funding availability date had been misstated as January 20th.

The correct NOFA date of January 30th, 2023, and subsequently amended on March 15th, 2023 has been updated in this resolution.

Uh and this uh updated resolution request came from HCD.

The approval of this resolution with the correction will allow us to finalize the standard agreement with HCD for these ASIC funds.

Um, also take this opportunity to provide a quick update on Balboa Reservoir.

Uh, as a reminder, Balboa Reservoir is a 17-acre site located across from City College and has previously been used as a parking lot.

The Balboa reservoir development agreement was approved by the Board of Supervisors in August 2020.

As an update on progress infrastructure for the first two affordable buildings, is set to begin this November.

Closing for building E, Balboa Reservoir's first affordable project is anticipated for November 5th with a construction start date of February 2026.

The project includes 158 affordable units and one non-restricted managers unit.

The area median incomes to qualify for these units will be restricted at 40%, 70%, and 80% AMI.

And the building uh building A received a ASIC award for approximately 45.7 million, including $33 million as a loan for housing construction, approximately $12.7 million for public transportation improvements.

The total financing for building A will include funds from Mo C D, the IIG and ASIC awards from HCD, housing tax credit equity and construction and permanent loans.

The sponsor and MOCD are currently working on the loan evaluation for their final gap loan, which will go to loan committee on uh November 7, 2025.

So that's coming up uh really soon.

Uh we will return to the board for approvals following loan committee for the total financing plan at the beginning of 2026.

We are currently looking at a total development cost for building A of 187 million, and that does include the infrastructure loan uh component, and then um building a trails uh infrastructure in building E by a few months because of uh pad readiness needs.

Um, construction is anticipated to begin April 2026.

Uh construction will finish February 2028, and lease up is expected to be complete by September 2028.

Uh, please let me know if you have any additional questions and thank you.

Long time coming, very exciting.

Uh, look forward to seeing 2028 uh or September 2028.

Um so I don't have any other additional questions.

Thank you so much for your work.

Thank you.

Uh we'll go to public comment on this item.

Yes, if we have any members of the public wish to address this committee regarding this item 12.

Now is our opportunity.

Madam Chair, we have no speakers.

Seeing no public comments, public comments now closed.

Colleagues, I would like to send this item to full board with recommendation and a roll call, please.

And on my motion to forward to the full board with a positive recommendation.

Vice Chair Dorsey.

Dorsey I, Member Chen.

Chen, I.

Chair Chan.

I.

We have three ayes.

The motion passes.

Thank you.

And then uh Mr.

Clerk, please call items 13 and 14 together.

Yes, item numbers 13 and 14 are resolutions as they relate to a project and property located at 1303 Larkin Street, and granting general authority to city officials to take actions necessary to implement or in furtherance of the respective resolutions and related matters as defined in the respective resolutions.

Item number 13 is a res is uh authorizing the execution and delivery of multifamily housing revenue notes in one or more series and aggregate amount principal amount not to exceed 19 million for the purpose of providing financing for the construction of the project, approving the forms of and authorizing the execution of a funding loan agreement, providing the terms and conditions of the construction loan from the funding lender to the city, and the execution and delivery of the notes, also authorizing a project loan agreement, providing the terms and conditions of the construction loan from the city to the borrower, approving the form of and authorizing the execution of a regulatory agreement and declaration of restrictive covenants, authorizing and collection, authorizing the collection of certain fees, approving for purposes of the internal revenue code of 1986 as amended the issuance and sale of residential mortgage revenue notes by the city in an aggregate principal amount not to exceed 19 million, approving modifications, changes and additions to the documents, ratifying and approving any action taken in connection with the funding loan, the project loan, the notes and the project.

Item number 14 is a uh approves and authorizes the director of the mayor's office of housing and community development to execute documents relating to a loan with 1303 Larkin Street LP for an aggregate loan amount, not to exceed approximately 18.5 million to finance the acquisition rehabilitation and permanent financing of the project and adopting findings that the project and proposed transactions are consistent with the general plan and the eight priority policies of the planning code and affirming the planning department's determination under the California Environmental Quality Act.

Madam Chair.

Thank you, Mr.

Clark.

And with that, again, we have the Mayor's Office of housing and community development here.

Hi, thank you so much, Supervisors.

My name is William Wilcox.

I'm the bond program manager for the Mayor's Office of Housing and Community Development.

I'm also the project manager for this transaction, uh 1303 Larkin Street.

And I'm joined today by the developers from the Chinatown Community Development Center and my colleague Sheila Nicolopoulos.

And so there's two items here.

One is to approve the tax exempt bonds, which provides the 4% low-income housing tax credit financing.

And then the other is for the Mo CD loan agreement.

And that has a few components.

There's no new subsidy funding today for this project.

This project $4 million of this is recasting is the term we use for old loans, just sort of repackaging them in new and updated terms and extending the affordability.

And then $2.5 million in our what was our existing nonprofit NOFA from a few years ago that we awarded this project that provided some money to do immediate repairs, like an elevator modernization that was badly needed at the property, and then also some money for pre-development funding for this project.

And that was uh some of the types of funds that Supervisor Chen brought up earlier is so important to uh helping our existing portfolio.

And then there's 11 million dollars that's a pass mortgage.

So the preservation and seismic safety program is we repurposed a few years ago an old bond from the 90s in order to make mortgages, and this is a real hard debt mortgage.

They have to make payments.

Um we sold general obligation bonds, but then the payments from this repay those.

So this is in lieu of getting a private mortgage, so we're able to offer better terms and target this to projects like this that at major financial institutions wouldn't be able to support in the same way.

Uh and so there's no new subsidy, that's just sort of these three loans and the tax credits.

Now, 1303 Larkin Street is a currently a 63 unit um affordable housing project that sits on top of the Pine Street post office in the Knob Hill neighborhood.

Um it was developed in the 1990s by the Chinatown Community Development Center, and through this rehab, we will add five units to bring it up to 68 units.

Um, I think it says 48 there, but with 47 of these will have project-based section eight.

So we'll be able to offer truly affordable income-based housing to the low-income seniors who live there.

Um, while the average the restriction on the property right now is at 60% of the MOCD area median income, the average AMI of the households is 17%.

So even though we have really low rents, we're already seeing existing residents be very rent-burdened, and this will largely address that across the building.

So we're adding five units, we're converting 43 of the SROs into studios or one bedroom units.

We're converting the property to all electric, we're placing the exterior and windows to ensure the waterproofing at the project, and upgrading the plumbing and mechanical systems.

So while if you look at the pro forma, it's a lot of money, it's also a lot of improvements to make sure that this is a long-term successful uh project.

Similar to 297th Street, this project has a closing deadline of December 12th, in order to preserve this basis boost that allows us to get about 30% more tax credit equity than we would otherwise.

So we've been moving at a fast clip to get this done, and I believe we can do it.

Even with HUD, the government shutdown and the postal service, we are still on track to close.

So it's a total 39 and a half million dollars, 18.5 is from us.

There's an existing loan from the state that will also be recast, 13 million dollars in tax credits, and a sponsor loan from C C D C for one million dollars.

Um so we will begin construction in December, finish in March 2027, and finish lease up by May 2027 on this project.

Um I'm happy to answer any additional questions, and my partners from CCDC are here as well.

Item 14 is a resolution that approves a loan agreement between MOHCD and Chinatown Community Development Center.

Uh the loan is for $18.5 million dollars and will be used to fund rehabilitation work at 1303 Larkin, which is operated by CCDC.

The loan includes $6.6 million dollars of existing city funding and then new uh past funding of 11.9 million dollars that will be used to fund rehabilitation costs.

That reinovation work is also being funded by other um sources, which we detail in our report.

We recommend approval of item 14.

Um I remember correctly, I might have delivered meals to this building during COVID.

And so I I saw the SRO rooms.

So I'm really excited to know that there are 43 units of SRO that be able to now convert it into to have kitchen and uh bathroom.

It's amazing.

And uh, try to like kind of envision like how would that happen, but I can see that there's some of them that that just like they have units that are individual, but they also have units that are two people and more.

I think in those SRO.

They're not like tiny, tiny, not like micro units, but some of them actually are I can see large enough to have that.

I'm excited about the project.

Thank you so much for working that out.

Um kind of intrigued by by the design of it.

Um, love to learn more.

Not not today, but eventually.

But I know you're offering the technical aspect of financing of it.

Um, I don't have any other additional questions.

Um let's go to public comments on these two items.

Yes, we are now opening public comment for both these items 13 and 14.

If we have uh any members of the public who wish to address this committee, Madam Chair, we have no speakers.

Seeing no public comment, public comment is now closed.

Um, colleagues, I would like to send these two items to full board with recommendation and a roll call, please.

And on the motion to forward both items to the full board with a positive recommendation.

Vice Chair Dorsey, Dorsey, aye.

Member Chen.

Chen, I, Chair Chan.

Aye.

Chan, I we have three ayes.

The motion passes.

Thank you.

And um, Mr.

Clark, do we have any other business before us today?

Uh Madam Chair, that concludes our business.

The meetings adjourned.