San Francisco Land Use and Transportation Committee Regular Meeting - May 8, 2023
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San Francisco Land Use and Transportation Committee Regular Meeting - May 8, 2023
The Land Use and Transportation Committee of the San Francisco Board of Supervisors convened on Monday, May 8, 2023, to consider three agenda items: acceptance of avigation easements for SFO noise insulation, a hearing on below-market-rate (BMR) homeownership program challenges, and an ordinance amending the landmark designation for the Castro Theatre. The committee voted unanimously on the first two items and passed the third on a 2-1 vote.
Consent Calendar
- Item 1 (230401): Acceptance and Recording of Avigation Easements – The committee approved a resolution authorizing acceptance and recording of 124 avigation easements from property owners in San Mateo County for the San Francisco International Airport’s Noise Insulation Program. The easements are required for properties within 65-decibel noise equivalent levels. No public comment was offered. The motion passed 3-0 (Melgar, Preston, Peskin) with a positive recommendation to the full Board.
Public Comments & Testimony
Item 2 – BMR Housing Program Hearing:
- Amy and Simon Jansuk, BMR homeowners, testified that they have been unable to sell their unit since September 2022. They stated the city’s “affordable resale price” ($386,000) is $152,000 below the maximum resale price ($538,000), which would result in a loss of $25,000 after paying off their mortgage and a loss of $90,000 in equity. They said the affordable price policy was implemented after their purchase in 2018 and was not disclosed to them. They requested the city remove the affordable price and allow them to sell at the maximum price.
- Jennifer Rosdale, a realtor with 20 years of experience, spoke about the program’s processing times (6–8 months) and restrictions (no rental option) and argued the program is failing its mission.
- A remote caller urged the committee to address the situation.
Item 3 – Castro Theatre Landmarking:
- Steven Torres of the Castro LGBTQ Cultural District spoke in support of moving the amended landmark designation forward, stating 1,000 signatures had been collected in support.
- Rob Byrne of the Castro Theater Conservancy also supported the amendment, stating 12,000 people had signed a petition and that a viable alternative plan exists that does not require destruction of the theater interior.
- Remote speaker Michael Petrellis criticized both the Conservancy and Cultural District for lack of transparency and financial planning.
- Remote speaker Mike Murray argued the Conservancy’s plan lacks funding and a realistic operational model, and noted that at a previous hearing, 85 speakers supported the owner’s plan (Another Planet Entertainment) while 58 opposed it.
Discussion Items
Item 2 – Hearing on Impact of Housing Market on Below Market Rate (BMR) Units:
- Chair Melgar introduced the hearing, prompted by reports of BMR homeowners feeling trapped. Sheila Nicolopoulos and Maria Benjamin from the Mayor's Office of Housing and Community Development (MOHCD) presented an overview: the BMR program includes 2,200+ units across three program categories. Since 1988, 688 units have been resold with an average ownership of 9 years and average equity gain of $96,000 for recent sales. However, average applications per resale fell from 26 (2019) to 5 (2023). Of 64 units with a gap between maximum resale price and affordable price, 46 have sold, 28 at the maximum price. 14 active resale units are above the affordable price, with 10 having no buyers. MOHCD attributed challenges to market conditions, competing new construction, and high interest rates, and noted plans for community engagement in summer 2023.
- Chief Economist Ted Egan noted declining housing demand and slowing price growth post-pandemic.
- Supervisors Melgar and Preston questioned the policy gap between maximum and affordable prices, the impact of HOA fees, and the need for legislative fixes. Chair Melgar expressed commitment to working with MOHCD and the city attorney to provide more flexibility.
Item 3 – Landmark Designation Amendment for Castro Theatre:
- The committee considered an ordinance to amend the landmark designation (No. 100) for 429–431 Castro Street (the Castro Theatre) to include interior features (e.g., seating, raked floor) and capture full historical significance. Supervisor Preston noted that no deal had been struck and moved to send the item to the full board as previously amended. Supervisor Melgar expressed concerns about precedent and voted against, while Supervisors Peskin and Preston voted in favor.
Key Outcomes
- Item 1: Approved unanimously (3-0) to forward to full Board.
- Item 2: The hearing was filed (motion passed 3-0). The committee committed to exploring legislative fixes.
- Item 3: Passed on a 2-1 vote (Peskin and Preston in favor, Melgar opposed) with a positive recommendation to the full Board.
Meeting Transcript
We're ready. Okay. Good afternoon, everyone. This meeting will come to order. Welcome to the May 8th, 2023 regular meeting of the Land Use and Transportation Committee of the San Francisco Board of Supervisors. I am Supervisor Mirna Melgar, Chair of the Committee, joined by Vice Chair Supervisor Dean Preston and Board of Supervisors President Aaron Peskin. The committee clerk today is Erica Major, and I would also like to acknowledge uh the good folks at SFCov TV for staffing this meeting. Madam Clerk, do you have any announcements? Yes, thank you, Madam Chair. The Board of Supervisors and its committees are now convening hybrid meetings that allow in-person attendance and public comment while still providing remote access and public comment via telephone. Public comment will be taken on each item on this agenda. Those attending in person will be taken first for public comment, and then we will move to a remote call in line. When connected, you will hear the meeting discussions, but you will be muted and listening mode only. When your item of interest comes up and public comment is called, those joining us in person should line up to their right. And those joining us remotely should press star three to be added to the queue. If you are on your telephone, please remember remember to turn down your television and all listening devices you may be using. You may submit written comment in the either of the following ways. You can email them to myself, then land use and transportation clerk. My email address is er i c A dot M A J O R at SF G O V dot org. You may also send written comments via U.S. Postal Service to our office at City Hall, one Dr. Carlton B. Goodlit Place, Room 244, San Francisco, California, 94102. Finally, items acted upon today are expected to appear on the Board of Supervisors' agenda of May 16th, unless otherwise stated. Madam Chair. Thank you very much, Madam Clerk. Please call the first item. Item number one is a resolution authorizing acceptance and recording of 124 uh aviation easements from various properties owners in San Mateo County required for the San Francisco International Airport Noise Insulation Program and affirming appropriate findings. Members of the public who wish to provide public comment on this item should dial star three, and you'll hear the system indicate that you have raised your hand in confirmation. Madam Chair. Thank you very much, Madam Clerk. We have Kathy Widener and Luis Moreno from uh San Francisco International Airport who are joining us on Teams to make the presentation. Welcome. Thank you. Good afternoon, Chair Melgar, Supervisor Preston, and President Peskin. I'm Kathy Wagner with the San Francisco International Airport. The item before you request your approval to accept and record 124 avigation easements from property owners located within community noise equivalent levels of 65, excuse me, 65 decibels or greater in San Mateo County as part of the airport's noise insulation program. There is no budget analyst report for this item. As the budget to perform the insulation work was previously approved by the board in 2020. Uh so there is no financial impact on this item specifically. As the clerk mentioned, I am joined by Airport Project Manager Luis Moreno, and together we can answer any questions you might have. Thank you so much. Do we have any questions or uh nope? Okay, thank you very much, Ms. Widener. Uh let's go to public comment on this item then. Thank you, Madam Chair. Are there any members of the public who would like to speak on item number one? You just need to approach the podium. Seeing none, we will move to a remote call in line.
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