Revised book

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SAN FRANCISCO HOUSING AUTHORITY

Rev. Amos Brown, President

Mirian Saez, Vice President

Micah Allen, Commissioner

Dr. Veronica Hunnicutt, Commissioner

Ahsha Safai, Commissioner

Matthew Schwartz, Commissioner

Dorothy Smith, Commissioner

BOARD AGENDA

February 23, 2012

4:00 pm

Board of Commissioners Room

440 Turk Street

San Francisco Ca. 94102

(415) 715-3280

Henry A. Alvarez III

Executive Director

.The Mission of the S

“

The Mission of the San Francisco Housing Authority is to deliver safe and decent

housing for low income households and integrate economic opportunity for

residents.”

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Table of Contents MEETING NOTICE .................................................................................................................................. 3

PUBLIC COMMENTS ............................................................................................................................. 6

TENANT REPRESENTATIVE REPORT: ............................................................................................. 9

REGULAR BUSINESS AGENDA: ......................................................................................................... 10

COMMISSIONER’S COMMENT .......................................................................................................... 49

CLOSED SESSION .................................................................................................................................. 50

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EDW I N M. L E E , MA Y O R

SA N F R A N C I S C O HO U S I N G AU T H O R I T Y RE V . AM O S C BR OW N , PR E S I D E N T


Mirian Saez, Vice President


Dr. Veronica Hunnicutt, Commissioner Ahsha Safai, Commissioner



Henry A. Alvarez III, Executive Director

440 TURK STREET

SAN FRANCISCO, California 94102 www.sfha.org

MEETING NOTICE

Thursday, February 23, 2012·4:00 p.m.

1. The San Francisco Housing Authority holds its meetings at 440 Turk Street, San Francisco, California 94102.

2. Disability Access: 440 Turk Street is accessible to persons using wheelchairs and others with disabilities. Assistive listening devices

are available upon request. Agendas are available in large print. Materials in alternative formats and/or American Sign Language

interpreters will be made available upon request. Please make your request for alternative format or other accommodations to the Office of the Ombudsman and Communication (415) 715-3232 (V); (415) 715-3280 (“TTDY”) at least 72 hours prior to the meeting

to help ensure availability.

3. The closest accessible BART station is Civic Center, three blocks from City Hall. Accessible MUNI lines serving this location are:

#47 Van Ness, #49 Van Ness, #71 Haight/Noriega, #5 Fulton, #21 Hayes, 36 Parnassus, #7 Haight, the F Line to Market and Van

Ness and any line serving the Metro Stations at Van Ness and Market and at Civic Center. For more information about MUNI accessible services, call 415-673-6142. There is accessible parking across the street from City Hall at Civic Center Garage as well as

across the street from the Federal Building on Larkin.

4. Agenda, minutes and attachments are available at www.sfha.org as well as the San Francisco Housing Authority Administrative

Office located at 1815 Egbert Avenue, San Francisco, California 94124. If any materials related to an item on this agenda have been

distributed to the San Francisco Housing Authority Board of Commission after distribution of the agenda packet, those materials are available for public inspection during normal office hours at the San Francisco Housing Authority at 1815 Egbert Street San Francisco

CA 94124

5. In order to assist the San Francisco Housing Authority’s efforts to accommodate persons with severe allergies, environmental illness, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to

various chemical based products. Please help the San Francisco Housing Authority accommodate these individuals.

6. The use of electronic sound-producing devices at/during public meetings is prohibited. Please be advised that the meeting President

may remove any person(s) responsible for the ringing or use of cell phones, pagers and similar sound-producing electronic devices

from the meeting room.

7. Requests for public comment may be heard on items not on the agenda as well as after staff presentation on any Regular Agenda Item.

Speakers at Board meetings are requested, but not required, to identify themselves and fill out cards placed on the table at the entrance door. When the Board considers policy, which has not been considered by a committee, testimony is welcome during the Public

Comment portion of the meeting. Testimony is not permitted when an opportunity has been given at a committee hearing for

testimony on an item. The public may address the Board for up to two minutes or four minutes for speakers who require an interpreter, or unless otherwise approved by the Board of Commissioners. The President, or the Board, may limit the total testimony

to 30 minutes. The Board may not take action on a new proposal, which is not on the agenda.

http://www.sfha.org/

http://www.sfha.org/

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AGENDA -------------------------------------------------------------------------------------------------------------------------------

ORDER OF BUSINESS

1. Call to order and roll call

2. Approval of agenda

3. Public comments on items not on the agenda: limited minutes

Note: This portion of the agenda is not intended for debate or discussion with the Commission or staff.

Please simply state your business or the matter you wish the Commission or staff to be aware of. It is not

appropriate for commissioners to engage in a debate or respond on issues not properly set in a publicly

noticed meeting agenda. If you have questions or would like to bring a matter to the Commissions’

attention, please contact the Executive Office of the San Francisco Housing Authority at [email protected].

4. Secretary’s Report

a. Response to Public Comments

5. Tenant representative report:

a. City Wide Council - senior/disabled (“CCSD”)

b. Public Housing Tenants Association (“PHTA”)

6. Regular Business: Public comment will be taken after staff presentation on each agenda item. Speakers

are encouraged to complete a comment card. Speakers will be limited to two minutes or four minutes for

speakers who require an interpreter.

a. Consent items

1) Approval of Minutes: February 9, 2012 Meeting

Public Comment

b. Action item

1) [Informational Presentation: Update on Potential Project Based Voucher Conversion

at Four Properties.] Presented by Barbara Smith, , Housing Development and

Modernization

Public Comment

2) [Results of Operations for the Period Ended December 31, 2011.] Presented by

Virgilio Chua, Finance Manager, Finance Department

Public Comment

mailto:[email protected]

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3) [Authorization Requested for Recommendation Pertaining to The Brown Act and

Time Limitations for Public Comment.] Presented by Tim Larsen, Office of the General

Counsel, General Counsel

7. Commissioner’s comment

8. Closed session

Public Comment

A closed session will be held pursuant to Government Code section 54956.9 to receive

advice from legal counsel on matters pertaining to settlement of Workers Compensation

Claims for: Deborah Burl-Scott – (Property Manager) Nikolao Ufau – (Laborer) Barry

Hazen- (Steamfitter) and Roberto Lechuga (Custodian)

9. Adjournment

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PUBLIC COMMENTS ON

ITEMS NOT ON THE AGENDA: LIMITED MINUTES

Note: This portion of the agenda is not intended for debate or discussion with the

Commission or staff. Please simply state your business or the matter you wish the

Commission or staff to be aware of. It is not appropriate for commissioners to engage in

a debate or respond on issues not properly set in a publicly noticed meeting agenda. If

you have questions or would like to bring a matter to the Commissions’ attention, please

contact the Executive Office of the San Francisco Housing Authority at [email protected].

mailto:[email protected]

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SECRETARY’S REPORT

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EDW I N M. L E E , MA Y O R

S A N F R A N C I S C O HO U S I N G AU T H O R I T Y RE V . AM O S C. BR OW N , PR E S I D E N T


Date: Friday, February 17, 2012

To: Board of Commissioners

From: Henry A. Alvarez III, Executive Director

Re: Responses to Public Comment at Commission Meeting on February 9, 2012

Commenter, Uzuri Pease, resident of Potrero Hill, thanked the staff of the Authority for their

attendance at the February 6, 2012 Community Forum and invited staff to attend the May forum.

Ms. Pease thanked staff for fixing her leaking sink and the lights outside of Potrero. Ms. Pease

further expressed that concerns related to maintenance should be addressed at the property

offices.

Staff Response:

Staff of the Authority will attend the May forum with advance notice of the specified date.

As reported to the board on February 9, management of the Authority is in the process of

reorganizing the staffing for Public Housing Operations to more effectively address the

maintenance and other concerns of SFHA residents as they arise.

An anonymous commenter asked who the residents should contact in the case of an emergency

after hours.

Staff Response:

In the event of an emergency requiring medical, fire or police assistance, residents should

call 911. In the event of a maintenance problem at their respective development, residents

can contact their property office during business hours (8:00am – 5:00pm) or call the

City’s 311 service at any time.

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TENANT REPRESENTATIVE REPORT:

a. City Wide Council - Senior/Disabled (“CCSD”)

b. Public Housing Tenants Association (“PHTA”)

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REGULAR BUSINESS AGENDA: Public comment will be taken after staff presentation on each agenda item. Speakers are encouraged to

complete a comment card. Speakers will be limited to two minutes or four minutes for speakers who

require an interpreter.

a. Consent items

1) Approval of Minutes: February 9, 2012 Meeting

Public Comment

b. Action items

1) [Informational Presentation: Update on Project Based Voucher Conversion at Four

Properties.] Presented by Barbara Smith, , Housing Development and Modernization

Public Comment

2) [Results of Operations for the Period Ended December 31, 2011.] Presented by

Virgilio Chua, Finance Manager, Finance Department

Public Comment

3) [Authorization Requested for Recommendation Pertaining to The Brown Act and

Time Limitations for Public Comment.] Presented by Tim Larsen, Office of the General

Counsel, General Counsel

Public Comment

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MINUTES


BOARD OF COMMISSIONERS MEETING

February 9, 2012

SCHEDULED: 4:00 p.m. at 440 Turk Street, San Francisco, CA 94102

COMMISSIONERS PRESENT: COMMISSIONERS ABSENT:

Mirian Saez, Vice Chair Rev. Amos C. Brown, Chair


Ahsha Safai, Commissioner



Dr. Veronica Hunnicutt, Commissioner

Item 1: Meeting called to order

Vice Chair Mirian Saez called meeting to order at 4:00pm

Item 2: Approval of Agenda

Motion: Commissioner Schwartz: Moved that Action Item b(1) follow approval of the

agenda

Commissioner Hunnicutt: Seconded motion

Vote: All approved

b. Action Item

1) [Informational Presentation: The Brown Act and Time Limitations for

Public Comment] Presented by: Tim Larsen, General Counsel, Office of the

General Counsel

Tim Larsen, General Counsel, made a presentation informing the

Commissioners of the Brown Act and how it applies to the Board.

Vice Chair Saez asked whether the Commission could follow Robert’s Rules

of Order to establish the rules of order of the SFHA Board of

Commissioners.

Mr. Larsen concurred.

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Commissioner Schwartz asked if the board was in a stronger position that the

board has a formally adopted policy of some kind and would it be

recommended

Mr. Larsen responded that it is his recommendation to formally adopt a

policy that would be read at the beginning of each meeting.

Commissioner Schwartz asked staff to come back with a recommended

policy for adoption at the next Commission Meeting.

Vice Chair Saez asked for clarification on the type of policy being requested.

Commissioner Schwartz responded that, due to staff’s recommendation, the

written policy being requested of staff would state that one speaker may not

yield their time to another speaker and that each speaker has a two minute

time limit.

Vice Chair Saez requested that Mr. Larsen provide his recommendation.

Mr. Larsen recommended that the Board adopt a policy pertaining to the

yielding of time to be added to the preamble of the meeting so that the public

understands what the rules are.

Commissioner Allen agreed that for purposes of clarity it would be beneficial

to have a written policy with rules concerning speaking

Vice Chair Saez confirmed that the Board has rules that are read by the

Commission Secretary at every meeting. Vice Chair Saez asked if there were

any further recommendations to rules that are read at the meetings. Vice

Chair Saez expressed concern of being overly restrictive in providing new

policy for a remote incident.

Commissioner Hunnicutt asked for staff’s recommendations pertaining to

whether a speaker can speak for two minutes and, within the same agenda

item, come back a second time to speak for another two minutes after

everyone has spoken.

Mr. Larsen confirmed that whatever the board decides to do it will be in

accordance with the law.

Commissioner Smith requested that prohibiting time yielding should be

announced in the beginning of the meeting to avoid confusion.

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Commissioner Saez requested staff recommendations on the issues

presented.

Mr. Larsen confirmed that the two issues are (1) whether a person can yield

their time during public comment and (2) whether an individual can speak on

the same agenda item a second time.

Commissioner Hunnicutt confirmed that the second item is in regards to a

speaker speaking on the same issue twice.

Commissioner Saez thanked Mr. Larsen for his presentation..

Item 3: Public Comments on items not on the agenda

Commenter, Uzuri Pease, resident of Potrero Hill, stated that she is happy that her sink is

fixed and the lights in Potrero have made a positive difference in the neighborhood. Ms.

Pease thanked Executive Director Henry A. Alvarez III, Tim Larsen, Renee Scott, Tim

Barrow, Miguel Paltao, Florence Cheng, Commissioner Micah Allen and Anthony

Ihejeto for attending the first resident forum at Potrero Hill. Ms. Pease invited the board

to their next forum in May.

Commenter, Rita Lark claimed that she found derogatory information about her mother

on the internet and that people should be more mindful of what information should be

posted.

Item 4: Secretary’s Report

Henry A. Alvarez III, Secretary, stated that the forum at Potrero was well organized, well

attended and appears to have resulted in many concerns resolved.

The Secretary also recognized the Recovery Act Grant Award which was awarded by

HUD to the San Francisco Housing Authority for being “The most successfully reviewed

Recovery Act Program.”

Item 5: Tenant Representative Report

1. Citywide Council Senior Disabled (CCSD)

Beverly Saba, President of CCSD stated that the new board took office February 1,

2012. The secretary position was filled by Randall Glock. Ms. Saba thanked Tim

Larsen and Pamela Palpallatoc for working with CCSD to finalize the MOU and

various tenant association concerns. Ms. Saba thanked Phyllis Moore-Lewis for

listening to the concerns of the CCSD. Ms. Saba also thanked David Rosario and

Barbara Smith for offering assistance. Ms. Saba mentioned that all senior disabled

buildings need effective security.

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2. Public Housing Tenants Association (PHTA)

Joyce Armstrong, President of PHTA, stated that the quarterly meeting tentative

schedule has been approved. Ms. Armstrong stated that she and Neola Gans

attended a safe action group forum at Potrero hill neighborhood which was well

attended and informative. Ms. Armstrong requested that the board continue to

separate church and state and not to confuse the two. Further, Ms. Armstrong

clarified that comments are not meant to be personal attacks on Henry Alvarez III,

but instead, are directed at Mr. Alvarez, who is the Executive Director of the San

Francisco Housing Authority.

Item 6: Regular Business

A. Consent Items

Minutes

o Minutes of regular Board meeting held on January 26, 2012

Motion: Commissioner Schwartz: Moved to accept minutes of January 26, 2012

Commissioner Allen: Seconded the motion

Vote: All approved

B. Action Items

2. [Informational Presentation: The Reorganization of the Public Housing

Operations] Presented by: Roger Crawford, Special Assistant, Executive Office

Roger Crawford, Special Assistant to the Executive Director, presented the

Commission with the new reorganization of Public Housing, which included one

Director for the family sites and another for the Senior/Disabled sites. Each of the

two directors would have two area managers. The purpose behind the re-

organization is to more effectively resolve resident needs.

Commissioner Schwartz recommended that staff checked how other housing

authorities handled their staffing and what other ratios reflect.

Commissioner Smith asked how this would affect the developments.

Mr. Crawford responded that each site would continue to have on site property

managers.

Commissioner Safai requested more information on the process that the SFHA took

when it came to this decision or the alternatives that the SFHA considered.

Mr. Crawford responded that by splitting the management duties in this way, one

director would not be overwhelmed.

Commissioner Hunnicutt asked how the SFHA can afford multiple managers with a

tight budget

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Mr. Crawford responded that other adjustments will be made in the budget as far

as how and where the spending would take place but there is enough funding for

an additional director.

Commissioner Allen asked for the area managers to introduce themselves.

(All of the area managers introduced themselves.)

Commissioner Allen asked where the managers were located.

(All of the area managers responded with their locations.)

Vice Chair Saez asked how this follows the AMPs organized structure, and for

budgetary purposes will the manager’s budget be able to be built up.

Mr. Crawford responded that the AMP system will not be changed and that

managers are still working on the budget with the assistance of finance

Commissioner Schwartz requested that the board be presented with property

staffing being recommended and how that will work with the AMP’s.

Mr. Crawford responded that this is only the preliminary stage and that it can be

brought back to the Commission.

Vice Chair Saez recommended communication with residents to avoid any

confusion.

Public Comment

Commenter, Uzuri Pease, resident of Potrero Hill, stated that the work needs to

be taken care of at the lower levels before moving up to the higher levels.

Commenter, unidentified, asked who the residents can call in an emergency after

hours.

Mr. Alvarez responded that for emergency medical call 911 and for maintenance

after hours call 311.

Item 7: Commissioners Comments

Commissioner Hunnicutt asked how the housing authority is assisting the

Department of the Status of Women

Linda Martin-Mason, Ombudsman, responded that the preferences will be addressed

during the PHA annual plan process which should be a three month process that

starts in March. Ms. Martin-Mason explained that the group who wrote the letter has

been invited and have come in the past. The group has been meeting for about two

years with Ms. Martin-Mason and Tim Larsen.

The Secretary provided a summary of the current Preference system.

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Vice Chair Saez expressed enthusiasm in the work being done to clarify the

preference system.

Commissioner Safai asked for a more elaborate presentation on the preferences

before the annual plan process begins. Commissioner Safai also requested an update

on delinquent rent by development

Commissioner Allen invited everyone to the YMCA for Healthy Community Day at

Martin Luther King Pool At 10:00am on Saturday 2/11/12

Item 8: Closed Session

Item 9: Adjournment by consensus 18:15

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AGENDA

SAN FRANCISCO HOUSING AUTHORITY BOARD OF

COMMISSIONERS

Agenda Category: Information- Housing Development & Modernization

Agenda Title: Update on Project Based Voucher Conversion at Target Properties

Presented By: Barbara Smith, Housing Development & Modernization Manager

SUMMARY

Project Based Voucher Conversion with Tax Credits

The San Francisco Housing Authority (SFHA) has been evaluating the conversion of up to four

properties from public housing ACC subsidies to Project Based Voucher (PBV) subsidies to

finance property improvements. The PBV subsidies are two to three times higher than the

current public housing subsidies. When combined with tax credit equity, as currently proposed,

over $76 million of capital improvements could be made to the properties for long term quality

low-income housing.

[Continued on Page 2]

Attachments: I. PBV Conversion Debt Capacity

II. PBV Conversion Planned Construction Work

III. Assurances To Public Housing Residents At The Time Of Conversion

IV. Section 8 Project Based Cap And Pipeline

A copy of any attached documents are available at the clerk’s desk.

DEPARTMENT’S REQUESTED ACTION:

None.

EXECUTIVE DIRECTOR’S RECOMMENDATION:

None.

Agenda Item No. 1

Date: February 23, 2012

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PBV Conversion

February 23, 2012

Page 2

Residents at three of the four properties with a total of 626 units: Ping Yuen, Ping Yuen North

and Rosa Parks support the efforts to secure funds for the rehabilitation work through this

process. Since some residents at Clementina Towers are still very uncomfortable with the

proposal staff recommends that we delay the process for this site but continue to talk with

residents about the benefits. Moving forward with the three properties reduces the total debt

capacity by $16.8 million to $59.5 million (see Attachment I). The proposed improvements were

identified in SFHA’s Comprehensive Physical Needs Assessment, through maintenance requests

and by talking with residents about priority needs. The work items and cost estimates for each of

the properties are described in Attachment II.

PBV Conversion Process

The first step in the process is to take the buildings of the public housing program through HUD

approval of a Disposition Application. SFHA will then apply for Tenant Protection Vouchers

(TPV) with the intent to convert the properties to PBV subsidies. Moving forward with the

disposition process would be subject to getting TPVs and any waivers requested. A developer

partner or partners may be solicited to assist with securing the private financing and

implementing the improvements. A tax credit partner or partners would be solicited in order to

bring in tax credit equity. The buildings would be acquired by a tax credit partnership that would

own them for approximately 15 years while they are receiving Low Income Housing Tax

Credits. SFHA expects that one of its nonprofit affiliates will be a general partner in the

partnership owner. SFHA will continue to own the land and intends to retain control of the

development with a ground lease. SFHA also intends to retain some management control

through their role as a partner in the tax credit partnership.

Community and Resident Involvement

Staff have been meeting with the residents of the properties since last year to discuss

rehabilitation needs, funding options and tenant protections after conversion. In addition, staff

have been working with the Chinatown Community Development Corporation to help Ping

Yuen, Ping Yuen North and Clementina Towers residents better understand the process.

Residents have provided input on priority work items and raised many questions about how they

would continue to be involved in the process, rent payments, ongoing affordability, rights and

benefits, and continuation of tenant associations. In order to respond to tenant questions and

address both tenant and tenant advocate concerns, staff have been meeting with the Asian Law

Caucus, Bay Area Legal Aid, Housing Rights Committee, and the National Housing Law

Project. Working together, we have prepared a draft Project Based Voucher Conversion

Assurances to Public Housing Residents at the Time of Conversion (see Attachment II).

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PBV Conversion

February 23, 2012

Page 3

HUD Requirements For Conversion to Public Housing to PBV

HUD published Notice PIH 2012-7 on February 2, 2012 providing new guidance on

requirements for HUD approval of the disposition of public housing under Section 18 of the U.S.

Housing Act of 1937 and its implementing regulations. The new guidance includes more

challenging requirements. If applications are in any way incomplete applications, HUD will be

reject them and require new applications to be submitted with new resident consultation and

Commission resolutions.

In addition, HUD will count any PBV subsidies through this process against the HUD 20%

Section 8 Budget Authority Cap for Project Based Vouchers. In other words, if SFHA is

successful in getting the Disposition Application approved for all three sites and secures 626

Tenant Protection Vouchers (estimated Budget Authority of $9,547,752) when these vouchers

are Project Based at the three target properties they will count against the PBV Cap. Twenty

percent of the increased Budget Authority or $1,909,550 will increase the Cap but the remaining

80% or $7,638,202 will count against the Cap. If the projects in the Project Based Pipeline go

forward, there will be a Cap shortfall of $5,899,064 (see Attachment IV). Legislation is needed

to exempt PBV in Conversion, Choice Neighborhoods and HOPE VI projects from the 20% Cap.

Another alternative is to submit for just one or two of the sites.

Complete Disposition Applications include:

Environmental review - complete

Confirmation proposed disposition is in the PHA Plan or amendment - complete

Letter of support from elected local government official - pending

Resident consultation documentation (attach resident comments & responses – complete

Sufficient detail on proposed uses of proceeds from disposition - complete

Duration of use restrictions or commensurate public benefits (low income housing) must

be for 30 years – use restrictions will be for 55 years or longer

Total Development Cost addendum for obsolescence – finalizing

Narrative justification under one of the statutory criteria - finalizing

o Justification of the approach with full consideration of the alternatives including

Rental Assistance Demonstration (RAD) program, Choice Neighborhood grants, public

housing mixed-finance rehabilitation, Capital Fund Financing Program, excess

Operating Fund reserves and voluntary conversion, to operate, maintain, or reposition

public housing units. Must ascertain which, if any, of the sources cited in PIH Notice

2012-7 and in what configuration provide that alternative resources are necessary to

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PBV Conversion

February 23, 2012

Page 4

operate, maintain, or reposition the HA’s public housing units. Simply stating public

housing Capital and/or Operating Fund resources are insufficient will not be approved.

Detailed description of necessary work to improve marketability, usefulness, and

management of the project - finalizing

Rehabilitation cost estimates that cover near-term needs over the next few years and

restore the units to their former condition - complete.

Conversion is consistent with goals of SFHA and in best interests of residents, including

continuation of lease or same tenant protections - complete.

Tentative Schedule

March 2012 Submit application to HUD Special Applications Center (SAC) (90-120

days)

September 2012 SAC approval after HUD Office of Fair Housing and Equal Opportunity

(FHEO) (45 days) and Field Office approval. FHEO confirms that the

proposed disposition affirmatively furthers fair housing (handicapped

accessible units, residents remain in place in gentrifying neighborhood,

site and neighborhood standards).

September 2012 Submit request for Tenant Protection Vouchers

Solicit Developer Partner and Tax Credit Investor

October 2012 Approval of Tenant Protection Vouchers

February 2013 CDLAC/TCAC Bond and Tax Credit Allocations

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ATTACHMENT I

PBV CONVERSION DEBT CAPACITY

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SFHA DEBT CAPACITY ANALYSIS FOR SELECTED PROJECTS

Scenario: 100% PBV

Prepared by CSG Advisors 1/27/12

TOTAL DOLLARS DOLLARS PER UNIT PER MONTH

Clementina Ping Ping Yuen Rosa Clementina Ping Ping Yuen Rosa

Towers Yuen North Parks Towers Yuen North Parks

276 unit 234 unit 194 unit 198 unit 276 unit 234 unit 194 unit 198 unit

0 ACC 0 ACC 0 ACC 0 ACC 0 ACC 0 ACC 0 ACC 0 ACC

276 PBV 234 PBV 194 PBV 198 PBV Total 276 PBV 276 PBV 276 PBV 276 PBV

INCOME

ACC Units 0 0 0 0 0

PBC Units

Gross rental income 4,086,803 5,521,237 3,909,751 3,761,542 17,279,333 1,234 1,966 1,679 1,583

Less loss for overhoused tenants 0 -657,959 -298,762 -136,360 -1,093,081 0 -234 -128 -57

Adjusted gross rental income 4,086,803 4,863,278 3,610,989 3,625,182 16,186,252 1,234 1,732 1,551 1,526

Total ACC & PBC adjusted gross rental in 4,086,803 4,863,278 3,610,989 3,625,182 16,186,252 1,234 1,732 1,551 1,526

Less vacancy loss 5% -204,340 -243,164 -180,549 -181,259 -809,313 -62 -87 -78 -76

Other income PUPM 16560 14,040 11640% 11880 54120 5 5 5 5

Total operating income 3,899,023 4,634,154 3,430,556 3,455,803 15,431,059 1,177 1,650 1,478 1,455

EXPENSES

Operating expense assumption PUPY 8,000 9,000 9,000 8,000

Operating expenses 2,208,000 2,106,000 1,746,000 1,584,000 7,644,000 667 750 750 667

FYI appraisal estimate 1,527,354 1,388,952 1,174,900 1,118,573 5,209,779 461 495 505 471

Extra supportive services 500 PUPY 117,000 97,000 214,000 0 42 42 0

Replacement reserve 300 PUPY 82,800 70,200 58,200 59,400 270,600 25 25 25 25

Total expenses 2,290,800 2,293,200 1,901,200 1,643,400 8,128,600 692 817 817 692

NET CASH FLOW FOR DEBT 1,608,223 2,340,954 1,529,356 1,812,403 7,302,459 485 833 661 763

DEBT CAPACITY

Estimated total debt capacity 16,800,000 24,460,000 16,100,000 18,930,000 76,290,000

FYI per unit 60,870 104,530 82,990 95,606

Less costs of issuance 3% -504,000 -733,800 -483,000 -567,900 -2,288,700

Less EPC bond repayment -3,709,001 -2,339,384 -2,907,716 -1,383,899 -10,340,000

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ATTACHMENT II

PBV CONVERSION PLANNED CONSTRUCTION WORK

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PING YUEN Debt Capacity: 23,720,000$

Work Description Funded Energy

Upgrade Work

CFFP Work or

PBV Priority

Work

Other PBV

Work

Total Planned

Install HET Toilets 176,448 176,448

Install Low Flow Showerheads & Faucet Aerators 80,746 80,746

Upgrade Apartment Lighting 127,188 127,188

Install Energy Star Refrigerators 33,272 33,272

Replace Space Heating Boilers 894,044 894,044

Replace Domestic Water Heaters 349,247 349,247

Additional Work (com. area lighting and gas stoves) 528,197 528,197

Install Energy Management Systems 127,197 127,197

New Roofing 910,000 910,000

Balcony Waterproofing 908,825 908,825

Trash Rooms 15,000 15,000

Smoke / Fire Detection System 699,048 699,048

Communication System - Intercom 82,403 82,403

Modernization of four passenger elevators 660,000 660,000

Security Lighting and Survellaince Cameras 150,000 150,000

Convert 2 units to comply with ADA/504 190,000 190,000

Unit Reflooring 1,700,000 1,700,000

Interior Unit Paint 2,100,000 2,100,000

Laundry Room Improvements 250,000 250,000

Hot & Cold Water Distribution 4,183,867 4,183,867

Switchgear/ Branch Panel and Electrical Improvements 1,675,000 1,300,000

Kitchen Cabinet and Range Hood Replacement 2,500,000 2,500,000

Wall Surface - Gwb 1,600,000 1,600,000

PING YUEN Totals: 2,316,340 3,275,276 14,348,867 19,565,483

Soft Cost Factor (1.2): 655,100 2,869,800 3,913,100

Project Total: 2,316,340 3,930,376 17,218,667 23,478,583

PING YUEN NORTH Debt Capacity: 15,610,000$


Upgrade Work

CFFP Work or

PBV Priority

Work

Other PBV

Work

Total Planned




Install Cogeneration Systems 537,805 537,805




Trash Compactors 45,000 45,000


Central Vent And Exhaust (11-16 Stories) 2,240,164 2,240,164

Modernization of three passenger elevators 555,000 555,000


Convert 3 units to comply with ADA/504 250,000 250,000


Window and Metal Door Replacement 3,175,376 3,175,376

Hot & Cold Water Distribution/Plumbing Upgrades 2,951,541 2,951,541

Switchgear/ Branch Panel and Electrical Improvements 900,000 900,000


PING YUEN NORTH Totals: 1,102,439 3,376,208 8,576,917 13,055,564

Soft Cost Factor (1.2): 675,200 1,715,400 2,611,100

Project Total: 1,102,439 4,051,408 10,292,317 15,666,664

25

ROSA PARKS Debt Capacity: 18,370,000$


Upgrade Work

CFFP Work or

PBV Priority

Work

Other PBV

Work

Total Planned



Upgrade Common Area Lighting 109,765 109,765




Install Vending Machine Controls 606 606



Hydronic Radiation Upgrades 762,676 762,676

Sanitary Lines (Sewer Replacement Phase Ii) 150,000 150,000

Built-Up, Membrane Or Foam Roof 328,116 328,116

Trash Compactors 25,800 25,800


Modernization of three passenger elevators 555,000 555,000


Exterior Waterproofing and Painting 900,000 900,000

Unit Reflooring 1,500,000 1,500,000

Interior Unit Paint 1,250,000 1,250,000

Common Areas Improvement Including Social Rooms 250,000 250,000



Hot & Cold Water Distribution - Copper 3,590,108 3,590,108


Plumbing Fixtures 534,300 534,300

ROSA PARKS Totals: 1,863,596 1,719,763 11,606,402 15,189,761

Soft Cost Factor (1.2): 344,000 2,321,300 3,038,000

Project Total: 1,863,596 2,063,763 13,927,702 18,227,761

CLEMENTINA TOWERS Debt Capacity: 16,300,000$


Upgrade Work

CFFP or PBV

Potential Work

Other

Potential PBV

Work

Total Planned



Upgrade Common Area Lighting 5,335 5,335





Plumbing Fixture Replacement 1,620,686 1,620,686

Hot & Cold Water Distribution - Copper 4,365,040 4,365,040

Central Vent And Exhaust (11-16 Stories) 400,000 400,000

Modernization of four passenger elevators 760,000 760,000



Balcony Fence and Bird Proofing 250,000 250,000


CLEMENTINA TOWERS Totals: 2,954,657 5,525,040 5,010,620 13,490,317

Soft Cost Factor (1.2): 1,105,000 1,002,100 2,698,100

Project Total: 2,954,657 6,630,040 6,012,720 16,188,417

Grand Total: 8,237,032 16,675,587 47,451,406 73,561,424

26

ATTACHMENT III

DRAFT

ASSURANCES TO PUBLIC HOUSING RESIDENTS AT THE TIME OF CONVERSION

27

DRAFT

PROJECT BASED VOUCHER CONVERSION ASSURANCES

TO PUBLIC HOUSING RESIDENTS AT THE TIME OF THE CONVERSION

February 14, 2012

The San Francisco Housing Authority (SFHA) is proposing to convert up to four properties to Project-Based

Voucher (PBV) subsidies. These subsidies are two to three times higher than the current public housing subsidies.

When combined with tax credit equity an estimated $74 million of capital improvements can be made to the

properties. The buildings will be owned by a tax credit partnership for a duration of 15 years to be eligible to

receive the tax credit equity. The SFHA expects that one of its nonprofit affiliates will be managing general or a

general partner in the partnership (partnership owner). SFHA will continue to own the land and intends to retain

control of the development with a ground lease. The SFHA also intends to retain some management control

through their role as managing member of the tax credit partnership.

Outreach to Residents

The SFHA will meet regularly with residents and community members before, during and after the conversion

process to guaranty resident and community participation. Discussion at these meetings will include:

Efforts that SFHA and the partnership owner will taking to ensure that residents will have the same tenant

protections and benefits as they currently do with public housing, to the extent feasible.

Rehabilitation and property improvements that protect the integrity of the buildings, provide a healthy and

safe living environment for residents and address improvements identified by residents.

Accommodations for residents during construction, including how much of the work may be accomplished

with residents in place.

Development of the management plan.

Opportunities for residents to obtain Tenant-Based Housing Choice Vouchers (TBV).

HUD Subsidies and Resident Payments After Conversion

The properties are expected to change from Public Housing to PBV.

Tenant share of rents will not change except possibly for the one household with a higher income paying public

housing flat rent, or as otherwise required by law.

Mixed families with some ineligible non-citizen family members should not have to pay higher rents, because the

partnership SFHA affiliate should be able to set contract rents that result in rents not higher than the amount the

Mixed Families are paying in the public housing program.

Tenant rents will continue to include all utilities and Tenants will not be asked to pay individual utility bills. The

properties are currently and will continue to be master metered for utilities.

Wheelchair Accessibility and Over-Housed Households

Part of the rehabilitation work will include making additional apartments wheelchair accessible to meet both the 5%

HUD requirement and needs of existing residents. The partnership owner of the property shall have the right to

transfer the tenant and household members in a wheelchair accessible unit to another unit in the same development

28

if another family needs the wheelchair accessible unit and neither the current tenant nor any household member

needs those wheelchair accessible features.

Property managers will offer vacant wheelchair accessible units first to existing tenants at the property who need

wheelchair accessibility and then to waitlist applicants who need wheelchair accessible units.

The SFHA will offer over-housed households tenant based vouchers appropriate for their household size rather than

PBV. The partnership owner of the property, when it converts, will request contract rents that allow the over-housed

households to stay in their current units while paying no more than 30% of adjusted income. (This is subject to

HUD approval of a waiver)

If an appropriate size unit becomes available at the development, the partnership owner of the property shall have

the right to transfer the over-housed tenant and household members to the alternate unit if the size of the unit is no

longer appropriate for the household composition.

If another family needs a wheelchair accessible unit and there is no available unit without accessibility features for

the current family or no right size unit for an over-housed household in the development, the SFHA may assist either

tenant to find a unit where the family can use a Tenant Based Voucher.

Rights of and Benefits for Residents after Conversion

It is intended that public housing tenants in units converted to PBV will have a lease with the same tenant

protections as they have as public housing residents to the extent they are not prohibited by the PBV or other laws,

regulations, or governmental directives. If a conflict arises regarding the applicable rules, SFHA and the partnership

owner will make every effort, including seeking a waiver of any HUD rules, to maintain on an ongoing basis for

residents the rights that they had at the time of the conversion.

The SFHA does not expect that residents will need to relocate while the buildings are being rehabilitated, but

commits to a Right to Return for any residents who do relocate during construction without any additional screening

and with the tenant protections provided as described in this document.

A tenant who is residing in the development at the time of the conversion will not lose their housing or their housing

subsidy as a result of the conversion.

The SFHA does not plan to do any more rescreening than is required for income verifications or as otherwise

required by law, regulations or other government directives...

If there is a conflict between lease or subsidy termination provisions, the parties will review all applicable law

including but not limited to Federal, State, and local law to find a resolution that is in the best interest of the parties

involved.

Before the SFHA can terminate the tenants PBV or Tenant-Based Housing Choice Voucher or partnership owners

can terminate tenants’ leases at the former public housing developments, tenants will be offered an opportunity to

request a Grievance Hearing pursuant to the SFHA Admissions and Continued Occupancy Policy (ACOP)

Grievance Procedures in effect at the time of the conversion. The proposed termination will not be taken until the

time for the tenant to use the Grievance Procedure has expired and (if a hearing was timely requested by the tenant)

the Grievance Procedure has been completed and a decision has been issued.

The SFHA may seek to terminate PBV or TBV assistance for the household and not pursue eviction pursuant to

eligibility requirements in the Section 8 Administrative Plan (e.g. over income, no members of the household who

are citizens or eligible non-citizens). All other reasons for termination of the PBV or TBV will be addressed in an

eviction process. Tenants will be given: (1) 30-day notice stating grounds for termination, right to reply, and right

to examine the SFHA relevant documents; and (2) right to request a Grievance Hearing pursuant to the procedures

in the ACOP in effect at the time of conversion.

29

The SFHA will not terminate a tenant for failing to meet self-sufficiency requirements that with good cause no

longer meets the criteria for a “qualifying family” with a family self-sufficiency contract of participation or other

supportive services requirement.

The partnership owner of the converted property may seek to evict a tenant only for good cause and by providing a

notice of lease termination. The Notice and Grievance Procedures will be governed by the ACOP in effect at the

time of conversion.

The partnership owner may not evict a tenant for failing to meet self-sufficiency requirements that with good cause,

no longer meets the criteria for a “qualifying family” with a family self-sufficiency contract of participation or other

supportive services requirement.

During the pendency of an eviction action, the housing assistance payments will not terminate until the tenant has

been dispossessed through a final judicial determination.

Tenant Associations

Legitimate resident organizations will be recognized by SFHA and the partnership owner including the Clementina

Towers Tenant Association, Rosa Parks Tenant Association and PYRIA (Ping Yuen Residents Improvement

Association).

Provisions for funding for tenant associations and tenant participation activities will continue in accordance with the

Code of Federal Regulations.

Supportive Services

Some funds will be budgeted at each of the four properties for supportive services. As mixed family and senior

developments, the preliminary budget for PY and PYN includes $500 per unit per year for extra supportive services

to meet HUD supportive services requirements for family developments.

Priority will be given for supportive services in the SFHA Section 8 Administrative Plan and identified by residents

through needs assessments.

Waitlists, Preferences and Transfer Provisions

New applicants will be drawn from the Section 8 waitlist based on the Section 8 Administrative Plan and the Section

8 preferences will apply. Applicants are given an opportunity to designate which preference or priority category they

believe they will qualify for and they are encouraged to update their information on file every six months. If the

status of an applicant has changed, they may self-certify that they fit into a preference category or categories.

Residents residing in the converted properties, at the time of conversion, will have an opportunity to request a

Section 8 Tenant Voucher after 12 months of occupancy. Receipt of the voucher depends on availability. There are

no provisions in the ACOP at this time for residents to move from a Section 8 PBV site to public housing.

Affordability controls after disposition

The PBV and Tax Credit funding require the housing to remain affordable to low income families. The SFHA

expects to have a 30-year PBV contract with the partnership owner, as described further below.

SFHA expects that each property will be subject to a contract with a 15 year initial term and a 15 –year extension

agreed to up front, for a total term of 30 years. The SFHA will require owner acceptance of any renewals of rental

assistance offered during the 55 year tax credit compliance period and beyond. In addition, SFHA will require in the

use restrictions in the event of bankruptcy or foreclosure that any future owner of the property will take subject to

the rent assistance contracts and will commit to accept any future rental assistance contracts for the period of the use

restrictions.

30

ATTACHMENT 1V

SECTION 8 PROJECT BASED CAP AND PIPELINE

31

Vendor

Number Owner Location

# of PBV

Units

Contract

Estimated

Annual HAP

Expenses

Asian Neighborhood Design Connecticut Street Apartments 2 30,504

California First Management Assoc 1825 Mission Street/Vincentian Villa 50 762,600

Chinatown Community Development Center Parkview Terrace Apartments/871 Turk Street 38 579,576

TNDC Delayed 1036 Mission Street 26 396,552

TNDC Delayed Eddy/Taylor Street Apts. 32 488,064

TNDC Delayed

5th and Howard Family Apts/920-21 Howard and

206 5th St. 34 518,568

Total Unit Pending: 182 2,775,864

Vendor

Number Owner Location

# of PBV

Units

Contract

Estimated

Annual HAP

Expenses

Hunter View 1195 Fairfax Ave. 125 1,906,500

150 Otis 150 Otis 50 915,120

Alice Griffith 207 Cameron Way 126 1,921,752

Alice Griffith 5800 3rd Street 97 1,479,444

Total Future PBV Units and HAP Amount: 398 6,222,816

24,875,102

Estimated CY 2012 CURRENT PBV HAP Expenses: 14,137,284

Pipeline Project Based HAP Expenses: 2,775,864

Future Project Based HAP Expenses: 6,222,816

Grand Total of HAP Expenses: 23,135,964

Remaining balance of the 20% CAP: 1,739,138

PBV Additional 626 Tenant Protection Voucher 20% Budget Authority ($9,547,752 x 20%) 1,909,550

Total New CAP with PBV Tenant Protection Vouchers 3,648,688

PBV Conversion 626 Unit Project Based HAP Expenses 9,547,752

Project Based HAP Expense Shortfall -5,899,064

Future Project Based Units

Pipeline Project Based Units

CAP = 20% Current Budget Authority ($119,296,592) plus additional 20% Budget Authority ($5,078,916)

32

AGENDA

SAN FRANCISCO HOUSING AUTHORITY BOARD OF COMMISSIONERS

Agenda Category: Report: Executive Director

Agenda Title: Result of Operation for the Fiscal Year Ended December 31, 2011

Tenant Accounts Receivable (TARs) as of January 31, 2012

Presented by: Virgilio E. Chua, Accounting Manager, Finance

SUMMARY:

The result of operations for the three (3) months ended December 31, 2011 Exhibit (A):

Public Housing ($326,827)

HOPE VI 164,742

Section 8 ($465,586)

Local Programs ($59,834)

Central Office Cost Center 462,188

Total ($ 225,317)

The overall result of operation for the three (3) months ended December 31, 2011 shows a deficit

of $225,317 with the Section 8 program contributing the major portion with a deficit of $465,586

and Public Housing program with a deficit of $326,827. The HOPE VI and the Central Office

Cost Center shows a combined net income of $626,930.

Attachments: Exhibits I, II, III, IV, V, &VI

Copies of any attached documents are available at the clerk’s desk.

DEPARTMENTS REQUESTED ACTION:

None.


None.

Agenda Item No. 2


33

Results of Operations for the Period Ended December 31, 2011

February 23, 2012

Page 2

Although the overall result of operation is a deficit of $225,317 (line 610 – Year to Date Actual),

management is working on maximizing the utilization of the Capital Fund Management

Improvement subsidy (line 190) of $251,383 which is available to the Public Housing Program.

The Section 8 Program is currently showing a deficit of $465,586 (line 610 – Year to Date

Actual) which shows an increase from the original budgeted deficit of $256,630 (line 610 –

Annual Budget). This deficit is expected to be offset by the $830,000 set-aside fund that we

received from HUD and not yet reflected in the current report.

34

Exhibit I

Central Office Variance Analysis to Budget

36

Exhibit II

Public Housing Variance Analysis to Budget

38

Exhibit III

Hope VI Variance Analysis to Budget

40

Exhibit IV

Section 8 Variance Analysis to Budget

42

Exhibit V

All Programs Variance Analysis to Budget

44

Exhibit VI

Number of Delinquent Accounts

47

AGENDA

SAN FRANCISCO HOUSING AUTHORITY BOARD OF COMMISSIONERS

Agenda Category: Action Item – Office of the General Counsel

Agenda Title: Authorization Requested for Recommendation Pertaining to the Brown Act

and Time Limitations for Public Comment

Presented By: Tim Larsen, Office of the General Counsel, General Counsel

SUMMARY:

The purpose of this presentation is to answer the following questions for the Board:

I. Can a member of the public speak on the same topic twice?

II. What recommendations does the Office of the General Counsel have concerning yielding of

a speaker’s time?

[Continued on Page 2]

Attachments: None.

A copy of any attached documents are available at the clerk’s desk.

DEPARTMENT’S REQUESTED ACTION:

None.


None.

Agenda Item No. 3


48

Brown Act and Time Limitation re Public Comment

February 23, 2012

Page 2

I. A Speaker May Not Speak On The Same Topic Twice

The California Brown Act provides the following:

“The legislative body of a local agency may adopt reasonable regulations to ensure

that the intent of [the public comment requirements are] carried out, including, but

not limited to, regulations limiting the total amount of time allocated for public

testimony on particular issues and for each individual speaker” (emphasis added).

California Government Code § 54954.3(b)

The Board’s preamble provides the following:

“The public may address the Board for up to two minutes” (emphasis added).

It has been the custom of the Board to limit a speaker to two (2) minutes per agenda item. This practice is

in accordance with the law.

II. Yielding of Time

Item 7 on the San Francisco Housing Authority Board of Commissioners Meeting Notice and Agenda

provides the following:

“The public may address the Board for up to two minutes or four minutes for

speakers who require an interpreter, or unless otherwise approved by the Board of

Commissioners.” (emphasis added).

If the Board does not want to allow a speaker to yield time, the above language is sufficient.

If the Board wishes to add language governing the yielding of time, staff recommends the following

language in bold:

The public may address the Board for up to two minutes or four minutes for

speakers who require an interpreter, or unless otherwise approved by the Board

of Commissioners. A speaker may not yield his or her time to another

speaker. The President, or the Board, may limit the total testimony to 30

minutes.

49

COMMISSIONER’S COMMENT

50

CLOSED SESSION

A closed session will be held pursuant to Government Code section 54956.9 to receive

advice from legal counsel on matters pertaining to settlement of Workers Compensation

Claims for: Deborah Burl-Scott – (Property Manager) Nikolao Ufau – (Laborer) Barry

Hazen- (Steamfitter) and Roberto Lechuga (Custodian)

51

ADJOURNMENT

Revised book

Documents

Transcript of Revised book