tv Government Access Programming SFGTV August 14, 2018 7:00am-7:25am PDT
as we move on, is there sort of working group that's looking where we can cut time, where we can stop red tape that's unnecessary? is it inevitable a we end up at 393 gap? is there something going on that we can actually make a change? >> yes. we do not believe it's inevitable. i think you're right in focusing on the things that we can address. how can we improve that. director richardson your question is expert nantes. there's a working group looking at this. there are a number of efforts that are addressing this. i mentioned the advancement we've been making on the entitlement side. this is your planning side on the permitting side getting
through dpw and mod and mayor's office on disability. we are tackling that issue head-on. lot of our conversations are on how do we improve that process. how can we take advantage of the mayoral director that focus on the major projects and move that same infrastructure to support our site specific work our infill work as well. we want to see housing coordinators at all the permitting agencies. we're part of the city family. we're like a consumer in this question. we're not a permitting agency. we're also trying to move projects through the process and see those challenges firsthand. i will say there seems like stated and shared belief that is
an area of focus. not just among staff but also of leadership. i'm cautiously optimistic we'll see improvements on that front. >> today we have a new mayor. we had mayor for few months. does that delay things? is there an opportunity to get running with the new mayor and start making change? >> i believe so. i don't think we've seen a delay. i think having mayor breed on board, i believe she will embrace this as one of her core pillar. it was reflected in her inaugural address today. to be successful, it will require mayoral leadership. we'll receive that from mayor breed.
>> housing money is spent on leasing. there's been a historical battle between building and leasing. is that continuing? for my two cents, just seems like building our own so we can have control forever, i guess. it's a better choice but there's a considerable amount of money to put into leasing because of short term quickness. is that another way to look at more funding for building? >> it's a battle. it's a balancing act. our office is exclusively looks at permanent acquisition and preservation or new production. our efforts all around creating
that permanent affordable housing. for the master lease program that's run out of sshh, there's a balance. they would voice those advantages. i think i don't see them as complimentary. >> secretary dunlop: all our problems are long term. we are facing problems that have been there for decades. thank you very much.
>> if you have an average cost per unit, what is the average size per unit? >> i would have to follow up with you on that. we do permanent affordable housing which is studio type units. it could be 350 square feet. family projects often have 30% three bedrooms. you're looking at the 1100 square foot units. i don't have a portfolio average unit size. we do have a range. some of our family sites because of site configurations will have more studios. it depends on the site. i can follow up with you on that. i don't have a average per square foot per unit. >> director lai: that's important. if you're saying per unit which could be studio or three bedroom it's a large site.
i would be curious to find out what the dollar per square foot cost for construction. i know that in the private sector. costs are up. to acquire lots cost lot of money. i would really be curious if you can come back to us with a number as to what that is. we're looking at modular housing to bring down the cost per square foot. once i know that number, i would like to know why that number is that way and what efficiencies can be done in the process to bring that number down? >> i would say that on a per square foot basis, our projects pursue multiple public benefits. they are about affordable housing but also about job creation and other benefits.
those can have an effective increase in costs. there's a larger regulatory framework builders have to work within. we don't have the same kind of amenities or finishes some of the higher end condos have. on per square foot basis, i don't believe we're so at odds what the larger construction industry is. i'm sure one of the colleagues were here, they would say, many of the same things that i'm saying in terms of the squeeze about lack of labor, increasing material costs and really rising costs. definitely come back with more specifics. really what i want to convey here is for the trends of this and areas of focus to come back to those trends >> director lai: i do want to follow up on what you just said.
for affordable housing units, do they have a different level of finish? >> we would not have luxury unit. we have durable long lasting finish. we wouldn't have a high-rise condo level. we don't have granite countertops. there can be certain higher end of the market. >> director lai: these numbers are for the affordable? >> those are affordable projects. >> director lai: wow, all right. >> there affordable in terms of cost to occupy them. >> director lai: okay. thank you. >> director giusti: that was pretty much my question how does this compare to market rate and building cost. have you looked at any opportunities for things like
maybe labor rates if it's a low income project to get more apareapprentices and job trainid use it to the advantage maybe lowering the cost of labor. which i know is significant when you build it. >> it really is. yes and no. all of our projects are subject to wage requirement. almost without exclusions. for all intensive purposes we're subject to state or federal wage laws. there's a wage floor below which we don't go. we definitely are interested in and advocate for getting new folks into the trades. we work closely with the city build division and office of economic and workforce development. they are trying to upcoming working group, how do we make that program even better.
one of the challenges that they have is they don't pay stipens for folks. for certain low income population it's hard to take ten weeks and not get any pay for that. we want to increase the pool of candidates that we have to really get at that. that's likely not going to bring down our cost that much. it is a clear public good to pursue. the question -- i think for our conversation is really focused on how do we make building process more efficient so you reduce the amount of labor. >> director giusti: i would imagine there's not the benefit as if you were doing market rate housing. when you're edone with the project, if it cost how million dollars a unit to build it, what's the equity you have the
minute it's done and ready to go? there's no opportunity to leverage that equity. >> there's no upside for our projects. we do work in an investment infrastructure. all of our projects take advantage -- all our new project construction projects take advantage low income housing tax credits. there's a tax credit investor who buys these credits and provides a source of equity for the project. there can be ways over the term of the regulatory period which is 55 to 99 years, that we can refinance and capture some of that equity for renovations later on. there's nothing in the absorption period. all of our revenue are kind of fixed right at the start.
>> thank you. i like to make some comments as well. thank you very much for that report. i do know that the mayor's office of housing is looking for diligently to try to find ways to reduce the cost to help all of us. we do know that it's absolutely unsustainable, politically, nationally in terms of having housing which cost a million dollars a unit. subsidy dollars is $400,000 a unit. it's just unsustainable. when we look specifically at treasure island. our goal for treasure island is 2000 units of units. $400,000 a unit, that's the cost, it's not the cost to construct, $400,000 is the gap that has to be plugged in order for that project to go ahead. we're talking about $800 million.
is that right? >> sounds right. >> president tsen: and hundred million dollar-- $800 million. we have to get in the safe. we'll have more money for those subsidies to continue to build affordable housing in the middle of an incredible housing crisis. i think that that is a political reality. all of us, mayor's office of housing, treasure island development authority, we go goo look at ways to do all the things you suggested. includes lowering the construction cost as much as we can by looking at innovative
methods. it includes trying to streamline the permitting process. it includes trying to simplify the design and building code. all of the various ways which have been identified. as a city, there's many social values that we hold. we would like to do all of them. by doing all of it in our housing production, it also increases the price of that unit. i think there's something discussion that needs to go on as to how do we get affordable housing but also how do we match other requirements that are required by the city. i would make a plug for treasure
island, though at the mayor's office of housing and city. it's a limited part of subsidy dollars that is spread throughout the city. it's not just for treasure island. reason why treasure island should be very high on that list is that the land is not a factor. the land cost is not a factor. which would bring that dollar amount lower. because of that, instead of projects which are seeking land to build and paying for that land, i think it's an example how cost. we have land here at treasure island which is devote, dedicated to affordable housing. the subsidy required to do affordable housing on treasure island should be less than other projects and therefore should get priority.
it is actually a supply for all san francisco. even though it's located in treasure island, it's affordable housing supply for all of san francisco. the other thing that i like to note is that, the construction costs are at a point which i've never seen in the development history. construction costs being this high. lot that is because we can't get skilled labor and skilled contractors. the unions really have to step up. they have to step up to create more apprenticeships so that we can get more workers trained, skilled so they can become part of the labor force. i end with that. >> thank you for your time. >> president tsen: next item. >> resolution authorizing the
treasure island director to approve the recommendation of the treasure island art steering committee and authorizes san francisco art commission to into an agreement for design of yerba buena island artwork proposal. >> when we received the initial proposals for yerba buena park one of those proposals focused more on the trails and staircases on ybi which was one of the opportunities identified. the conversation with the steering committee have been to ask that artist to refine and further develop a proposal. that we're proposing to move forward. >> good afternoon commissioners. nice to see you again. thank you bob for that introduction.
bob said, his proposal for yerba buena island had many ideas. it seem like it could be better aligned with another arts master plan project opportunity the yerba buena island trails and open space. in his statement, he has a particular going back to his childhood. he writes he never forgot the woods where he once played and the trees he once climbed. not surprisingly, his proposal is to work with trees to create either wood passages or wood passage steps at various locations on the island. for the wood passage steps, he