7/08/2010

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Thursday, July 08, 2010

440 Turk Street San Francisco, California

A Regular meeting of the Housing Authority Commission of the City and County of San Francisco met at 440 Turk Street, San Francisco, California, on Thursday, July 08 2010, at 4:00 p.m.

Vice President Gans called the meeting to order at 4:05 p.m.

1.

ROLL CALL PRESENT:

Neola Gans, Vice President George Brown, Commissioner Jane Hsu, Commissioner Millard Larkin, Commissioner Dwayne Jones, Commissioner Matthew Schwartz, Commissioner

NOT PRESENT:

Rev. Amos Brown, President

A quorum was present.

ALSO PRESENT:

2.

Mr. Henry A. Alvarez, Executive Director Mr. Roger Crawford, Special Assistant to the Executive Director

APPROVAL OF AGENDA Commissioner Schwartz motioned to approve the agenda. Commissioner Brown seconded the motion. The agenda was approved unanimously.

3.

GENERAL COMMUNICATIONS/ REPORT OF SECRETARY Henry Alvarez, Executive Director informed the Commission that they could find routine information from SFHA staff as well as any pertinent information from HUD in their Commission binder.

4.

COMMITTEE REPORTS There were no Committee Reports.

5.

REPORT OF GENERAL COUNSEL

Commission Meeting Minutes July 08, 2010 Page 2

Mr. Roger Crawford, Special Assistant to the Executive Director informed the Commission that there would be a Closed Session to discuss labor negotiations and pending litigation.

6.

TENANT REPRESENTATIVE REPORT Dorothy Ramey, President of CCSD presented to the Commission. She reported on several issues including credit card finances, CCSD acquiring a parliamentarian to go over financial issues. Ms. Ramey also invite Mr. Alvarez to join an upcoming CCSD meeting.

Ramona Collie, represented PHTA. She reported on several issues including the election and nomination process for several family sites, finances and upcoming events.

7.

PUBLIC COMMENT ON AGENDA ITEMS Public Comments were heard by the following: Lynn Daniels Tessie Esther Leotis Martin John Dorsey Andrea Berry Ace Washington Debi Muise Kathy Perry

8.

UNFINISHED BUSINESS There was no unfinished business.

9.

NEW BUSINESS

A) CONSENT AGENDA NOTE:

All matters listed hereunder constitute a Consent Agenda, are considered to be routine by the San Francisco Housing Authority Board and will be acted upon by a single vote of the Authority Board. There will be no separate discussion of these items unless a member of the Authority Board so request, in which event the matter shall be removed from the Consent Agenda and considered as a separate item.

1. Approval of Minutes for April 22, 2010 Commission Meeting

Commission Meeting Minutes July 08, 2010 Page 3 2. Approval of Minutes for May 13, 2010 Commission Meeting 3. Approval of Minutes for May 27, 2010 Commission Meeting 4. [Purchase order with Eskel Porter Consulting, inc. for Training and Computer Software Technical Assistance in an Amount not-to-exceed $100,000] Consideration and Approval. Presented by Herb Lum, Budget Manager/ David Rosario, Director of Information Systems 5. [Adopt EIV/UIV and Quality Control Policy as required by Housing and Urban Development (HUD)] Consideration and Approval. Presented

by Anthony Ihejeto, Director of Public Housing.

Commissioner Larkin made an amendment to the April 22, 2010 Commission Minutes, last page to state “Commissioner Larkin motioned…” With that amendment Commissioner Larkin motioned to approve the Consent Agenda. Commissioner Jones seconded the motion. The Consent Agenda was approved unanimously.

B) ACTION ITEMS

1. [Execution a Disposition and Development Agreement, Ground Lease Agreement for Phase 1A and Ground Lease Agreement for Phase 1B and Ancillary Documents, in Substantially the form on file with the Authority, with Hunters View Associates, L.P. for Revitalization of the Phase 1 Area of the Hunters View Housing Development] Barbara Smith, HD/MOD Administrator presented this Resolution. The San Francisco Housing Authority (Authority) desires to enter into a Phase 1 Disposition and Development Agreement (DDA) and Ground Lease Agreements for the Phase 1A and Phase 1B sites for revitalization of Hunters View. These agreements have been negotiated with Hunters View Associates, L.P. (the “Developer”) in collaboration with the Mayor’s Office of Housing (MOH) and San Francisco Redevelopment Agency (SFRA) as providers of gap financing for the project.

As described in the DDA, the Hunters View revitalization project will consist of: demolition of the existing 267 public housing apartment units; new construction of 267 replacement public housing units and 202 mixed income housing units; off street parking; new roadways and sidewalks; the construction of up to 6,500 square feet of neighborhood servicing retail space; and the construction of up to 8,500 square feet of childcare space, community parks, and landscaping to be developed on the property.

The DDA delineates the responsibilities for community building activities, including economic development, revitalization planning, self-sufficiency and supportive services, and affirms that this is a core part of the

Commission Meeting Minutes July 08, 2010 Page 4 revitalization effort in order to assist current and future low income residents to gain self-sufficiency and in order to support the revitalization of the neighborhood.

The Authority, the Developer and the City agree to implement community building measures as an integral part of the revitalization, including Section 3 and the Authority’s Affirmative Action requirements as provided in the Workforce MOU. The Developer, in partnership with the City and the Authority, agree to coordinate the implementation of a community services plan that is being developed with input from the Hunters View residents.

The total estimated cost for Phase 1A is $72 million. The estimated contributions from city agencies are: $9.8 million (SFRA), $16.6 (MOH) and $8 million (Authority). The balance of the funding, approximately $37.7 million, is from California Department of Housing and Community Development, Affordable Housing Program, Tax Credit Equity and General Partner Equity. Repayment of loans and ground leases from the Developer will be made from surplus cash flow based on the Authority, SFRA and MOH proportional share of contribution to the development.

The Authority is requiring a Right of First Refusal and Purchase Option for the new affordable rental housing components to be exercised no later than at the end of the Tax Credit Compliance period in 15 years. The purchase amount will be consistent with IRS requirements of the greater of debt plus taxes or fair market value.

Commissioner Schwartz motioned to approve this Resolution.

Commissioner Larkin seconded the motion. This resolution was approved unanimously.

2. [ Memorandum of Understanding with the San Francisco Mayor’s Office of Housing, San Francisco’s Office of Economic and Workforce Development and the SF Redevelopment Agency for the Proposed Redevelopment of Alice Griffith Public Housing Site] Barbara Smith, HD/MOD Administrator presented this Item. Entering into a Memorandum of Understanding (MOU) with the San Francisco Mayor’s Office of Housing, the San Francisco Office of Economic and Workforce Development and the Redevelopment Agency of the City and County of San Francisco is the most effective means of achieving the goals of: Revitalization of Alice Griffith; HOPE SF; SFRA’s Hunters Point Shipyard Phase II Exclusive Negotiations and Planning Agreement that includes Alice Griffith as part of the site redevelopment program; and voter approved Proposition G for Mixed-Use Development Project for

Commission Meeting Minutes July 08, 2010 Page 5 Candlestick Point, including one-for-one replacement of Alice Griffith, and the Hunters Point Shipyard.

The MOU affirms that SFRA, OEWD, MOH and SFHA, subject to HUD approval, seek to pursue the revitalization of Alice Griffith pursuant to the principles and goals of HOPE SF and Proposition G, and in conjunction with ongoing work under the HPSY-2 ENA and the planning and implementation of the larger Mixed-Use Project which may include transfer of certain portions of the Alice Griffith property to developer affiliates in exchange developer contributions that equal or exceed the fair market value of the unimproved SFHA property.

The Developer will be required to meet or exceed the Authority’s 20% MBE/WBE subcontracting requirements (Commission Resolution #2444), as well as requirements of the San Francisco Redevelopment Agency and the Mayor’s Office of Housing. The Developer will be required to meet or exceed the Authority’s requirement that 25% of the work force hours for contractors and consultants be public housing resident hires (Commission Resolution #4967), as well as requirements of the San Francisco Redevelopment Agency and the Mayor’s Office of Housing. The $57 million of immediate capital improvement needs will be addressed through replacement of the Alice Griffith public housing units with new housing that is financed with private and other public funds leveraged through the proposed partnership with Lennar.

Commissioner Schwartz motioned to approve this Resolution.

Commissioner Larkin seconded the motion. This Resolution was approved unanimously.

3. [Authorization for the Executive Director to Provide a Broad Range

of Summertime Activities for Housing Authority Youth in an Amount not to Exceed $200,000, for the Summer of 2010] Rose Dennis, Management Analyst presented this Resolution along with Phil Ginsburg from SF Recreation and Park Department. The purpose of this resolution is to authorize the Executive Director to partner with the City and County of San Francisco’s Recreation and Parks Department (SFRP) to provide free summer camp and recreational activities for Authority youth.

The SFRP summer camp programs provide the following additional activities: arts and Crafts; field Trips; cooking; photography; dancing; and fishing. SFRP has informed the Authority that more than 870 SFHA families have registered for summer camp. These numbers significantly exceeded our expectation, but staff believes it is essential activity for our

Commission Meeting Minutes July 08, 2010 Page 6 youth absent a structured summer school session by SFUD. Therefore staff request authorization to spend not more than $200,000. The provision of summer camp is consistent with the aim of SFHA to provide safe, structured programs for SFHA youth with savings recognized in our budget.

Commissioner Brown motioned to approve this Resolution. Commissioner Larkin seconded the motion. This Resolution was approved unanimously.

4. [Submission of the Authority’s Annual Plan and Capital Grant Fund and Adoption of the Revised Section 8 Administrative Plan and Admissions and Continued Occupancy Policy] Rufus Davis, Management Analyst presented this Resolution. The Quality

Housing and Work Responsibility Act of 1998 mandates that all public housing authorities submit an annual plan 75 days before the end of their fiscal year (September 30, 2010, for the San Francisco Housing Authority). The San Francisco Housing Authority’s PHA Annual Plan is a “road map” on how it proposes to do business beginning October 1, 2010.

For several months, Housing Authority staff members have met with residents, community partners, and city agencies in an effort to explain the Housing Authority’s proposed changes to the existing Annual Plan.

Through these efforts, the Housing Authority has produced an Annual Plan that includes policies, goals, objectives, and strategies that will enable it to the serve the needs of low-, very low- and extremely lowincome households for the next five years while continuing to implement the Asset Management business model that HUD requires public housing authorities to use.

Commissioner Jones motioned to approve this Resolution. Commissioner Schwartz seconded the motion. This Resolution was approved unanimously.

10.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Public Comments were heard by the following: Ace Washington

11.

COMMISSIONERS COMMENTS AND REPORTS Commissioner Larkin wanted to ensure that the SFHA made a good faith effort in response to Ace Washington’s public comment in hopes that the Agency provides the best customer service and remains transparent.

Commission Meeting Minutes July 08, 2010 Page 7 12.

CLOSED SESSION A Closed Session was scheduled with the Executive Director and Agency Counsel under Government Code Section 54957(b)(1), 54956.9, 54957.6 to update the Commission on personnel issues, pending litigation and labor negotiations. The Commission went into Closed Session at 5:13 p.m. No decisions were made.

13.

ADJOURNMENT There being no further business to come before the Commission, Commissioner Schwartz motioned to adjourn the meeting. Commissioner Brown seconded the motion. Vice President Gans adjourned the Commission Meeting of July 08, 2010, at 6:10 p.m.

Henry A. Alvarez, Secretary/ Executive Director

Neola Gans, Vice President