Government Audit and Oversight Committee Special Meeting - June 27, 2025
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Government Audit and Oversight Committee Special Meeting - June 27, 2025
The Government Audit and Oversight Committee of the San Francisco Board of Supervisors held a special meeting on Friday, June 27, 2025, at 10:15 AM. The meeting was chaired by Supervisor Jackie Fielder, joined by Vice Chair Sauter and Supervisor Sherrill. The committee considered two items: a resolution to authorize up to $76 million in multifamily housing revenue bonds for the Sunnydale HOPE SF Block 7 affordable housing project, and a hearing on the city's employment vacancies, recruitment, and retention efforts as required by California Assembly Bill 2561. No public comments were received on either item.
Discussion Items
Item 1: Multifamily Housing Revenue Note – Sunnydale Block 7 (File No. 250659)
- Project Description: The resolution authorizes up to $76 million in tax-exempt and taxable bonds to finance the construction of an 89-unit affordable housing development at 65 Santos Street (Sunnydale HOPE SF Block 7). The project is sponsored by Mercy Housing California and Related California. Of the 89 units, 67 will be replacement units for former public housing residents earning up to 50% of Area Median Income (AMI); the remaining 22 units will be for households earning up to 70% AMI. Unit mix includes 9 four-bedroom, 23 three-bedroom, 43 two-bedroom, and 13 one-bedroom units. Total development costs are approximately $107 million. Construction is expected to start within weeks and finish by March 2027. The city's loan will be leveraged with state housing funds, a private construction and permanent loan, and housing tax credits.
- Committee Action: Supervisor Fielder moved to forward the resolution to the full Board of Supervisors as a committee report with a positive recommendation. The motion passed unanimously (3-0) with Vice Chair Sauter, Supervisor Sherrill, and Chair Fielder voting aye. The item is scheduled for Board consideration on July 1, 2025.
Item 2: Hearing – Employment Vacancies, Recruitment, and Retention Efforts (File No. 250642)
- Presentation by Director Carol Eisen (Department of Human Resources): Director Eisen reported on the city's vacancy data as of June 3, 2025. Key metrics:
- Total FTEs in the salary ordinance: 39,664.
- Budgeted attrition: ~4,500 FTEs.
- Filled positions: 3,285 FTEs (likely a typo; from context, total filled should be ~35,000; actual calculation: 39,664 - 4,500 - filled = vacancies; presented vacancy rate of 6.6% citywide).
- On-budget vacancy rate (core operating positions): 4.3%.
- Citywide vacancy rate peaked at over 14% during COVID-19 and has since recovered to pre-pandemic lows.
- Breakdown by bargaining unit: e.g., Professional and Technical Engineers (Local 21) – 10.7% overall (3.4% on-budget); Police Officers – 19.6% overall (on-budget near total).
- Hiring process improvements include on-demand online examinations, continuous eligibility lists, technology upgrades, and the reopening of a career center in City Hall (served over 1,000 people in 2025).
- Average time-to-hire has improved for high-demand roles (e.g., nurses hired within weeks), but overall system remains regulated and merit-based.
- Questions from Vice Chair Sauter: Asked about obstacles and time-to-hire. Director Eisen noted the merit-based system inherently requires time; improvements include online exams and continuous lists. No specific overall average time was provided, but noted variation by classification. Applicant volume data was not immediately available.
- Committee Action: Supervisor Fielder moved to file the hearing. The motion passed unanimously (3-0). The hearing was concluded.
Key Outcomes
- Item 1 (Sunnydale Block 7 financing) forwarded to full Board with positive recommendation (3-0).
- Item 2 (employment vacancies hearing) heard and filed (3-0).
Meeting Transcript
Good morning. This meeting will come to order. Welcome to the June 27th, 2025 regular meeting of the Government Audit and Oversight Committee of the San Francisco Board of Supervisors. I'm Supervisor Jackie Fielder, Chair of the Committee, joined by Vice Chair Sauter and Supervisor Cheryl. Our committee clerk is Monique Creighton. Much thanks to Madam Clerk as well as Jamie Echevery of SFGov TB for staffing this meeting. Madam Clerk, do you have any announcements? Yes. 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 your right alternatively. You may submit public comment in writing in either of the following ways. Email them to the government audit and oversight committee clerk at M O N I Q U E.org. You can 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, our office in Dr. in City Hall. Number one, Dr. Carlton B. Goodlit Place, Room 244, San Francisco, California 94102. If you have documents you would like to be included as part of the file, please submit them to me before the end of the meeting. Please make sure to silence all cell phones and electronic devices to prevent any interruptions to today's proceedings. Finally, items acted upon today are expected to appear on the Board of Supervisors supervisors' agenda of July 8th, 2025, unless otherwise stated. Thank you, Madam Clerk. Can we please call item one? Yes, item one is a resolution approving for purposes of the internal revenue codes of 1986 as amended, authorizing the execution and delivery of a multifamily housing revenue note in one or more series in an aggregate principal not amount not to exceed $76 million for the purpose of providing financing for the construction of an 89-unit multifamily rental housing project locate located at 65 Santhill Street known as Sunnydale Hope SF block 7, approving the form of and authorizing the execution of a funding loan agreement, providing the terms and conditions of the loan from the funding lender to the city and the execution and delivery of the note. Approving the form and authorizing the execution of a borrower loan agreement, providing the terms and conditions of the loan from the city to the borrower, approving the form of and authorizing the execution of an amended and restated funding loan agreement, which amends and restates the funding loan agreement on and after conversation, conversion, approving the form of and authorizing the execution of an amended and restated borrower loan agreement, which amends and restates the borrow loan agreement on and after conversion, approving the form of and authorizing the execution of a regulatory agreement, and declaration of restrictive covenants authorizing the collection of certain fees, approving modifications, changes, and additions to the document, ratifying and approving any action heretofore taken in connection with the back-to-back loans, the note, and the project, granting general authority to city officials to take necessary to take actions necessary to implement this resolution, rescinding resolution number 162-25 and related matters as defined herein. This item will be referred to the full board as a committee report for consideration on July first, 2025. Thank you, Madam Clerk. Mr. Ryan Van Zoyland, project manager of Sunnydale Box 7 of this item will be presenting today. And Ms. Kyra Geithman, Associate Director of Policy and Community Affairs at MOHCD will also be available for questions. Mr. Vin Zoyland, please go ahead. Just as a quick refresher on the Hope SF initiative, uh Hope SF was created by then Mayor Gavin Newsom back in 2005 in response to diminishing federal funding for San Francisco's largest and most neglected public housing sites, namely Alice Griffiths, Huntersview, Petrero, and in this case Sunnydale. Hope is F represents a more than 20-year human and real estate capital commitment by the city to achieve reparations for the insidious impacts of past and ongoing trauma, systemic and institutional racism, and deep and persistent poverty to follow through on the city's commitment of replacement housing to the Sandale community. We are excited to come before you today to approve financing for the next phase of affordable housing construction. To present further on this item, I'd like to uh welcome up my colleague Ryan Van. Thanks, Jason. Hello, supervisors. The purpose of the resolution before you today is to authorize the delivery of $76 million in tax exempt and taxable bonds used to finance Sunnydale Block 7. This project will be a new 89 unit affordable housing development sponsored by Mercy Housing California and Related California. The Sunnydale Hope SF Master Plan seeks to redevelop the 775 unit public housing site into a mixed income community of roughly 1,770 units with new streets, infrastructure, and open space. Sunnydale Block 7 will be the fifth affordable housing development at Sunnydale Hope SF. Of the 89 new units, 67 will be set aside as replacement units for former public housing residents earning 50% San Francisco area median income. The remaining units will be lottery units restricted to those earning 70% San Francisco area median income. The residential unit mix is designed for families and includes nine four bedrooms, 23 three bedrooms, 43 two bedrooms, and 13 one bedrooms. Total development costs for Sunnydale Block 7 are expected to be roughly 170, I'm sorry, 107 million dollars. The city's loan will be leveraged with the state housing and community development ASIC program, which was successfully applied for by the sponsors, Mercy and related.
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