Inclusionary Housing Technical Advisory Committee: First Meeting - - PowerPoint PPT Presentation

Inclusionary Housing Technical Advisory Committee: First Meeting

May 24, 2016

Tonight's Agenda

• Call to order and Roll Call
• Introduction of the Committee members and staff
• Election of Committee Chair
• Revie

iew o

• f Commit

ittee F Formatio ion Legis gisla latio ion

• Discussion o
• f Potential S

Study A Approaches

• Public Comment

Controller's Office ● City and County of San Francisco

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Legislation Forming the Committee and Establishing the Feasibility Study

• New inclusionary requirements
• Grandfathering
• Feasib

ibilit lity S Study

• Technic

ical A l Advis isory C Commit ittee

3

Controller's Office ● City and County of San Francisco

Feasibility Study

• To be conducted every three years by the Controller, with the assistance of consultants.
• Can be done more often if economic conditions warrant.
• First report due July 31, 2016.
• Shall include sensitivity analysis of economic parameters, such as:

– Interest rates – Capitalization rates – Rates of return on equity – Land prices – Construction costs – Project scale – Local, state, and federal housing finance programs – Public-private development agreements

Controller's Office ● City and County of San Francisco

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Technical Advisory Committee

• Eight members, four appointed by the Mayor and 4 by the Board of Supervisors.
• Staffed by the Controller's Office.
• Required to meet at least once every four months.
• Tasked with holding technical workshops to evaluate the feasibility of various on-site and
• ff-site alternatives, such as project types, inclusionary percentages, resident income

levels, and variations by neighborhood.

Controller's Office ● City and County of San Francisco

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Potential Project Approach

• 3 or 4 more TAC meetings this summer.
• 3 Consultants secured to conduct 3 independent strands of work.
• Century Urban: build on their previous pro-forma analysis of inclusionary fees for the

city.

• Street Level Advisors (Rick Jacobus): facilitate TAC meetings, provide research on good

practices from other cities.

• Blue Sky Consulting: use pro-forma results to model impacts of fee options on citywide

affordable housing resources and housing production.

Controller's Office ● City and County of San Francisco

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High-Level Project Plan

Controller's Office ● City and County of San Francisco

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Event Meeting 1 Meeting 2: pro- forma modeling Meeting 3: review preliminary results Meeting 4: if necessary Meeting 5: final report Century Urban define remaining questions follow-up research present follow-up research present follow-up research final presentation refresh assumptions prepare presentation describe report Rick Jacobus facilitation follow-up research facilitation facilitation facilitation define financial scenarios Blue Sky Model development take inputs preliminary results refine model present refined model final presentation

Pro-Forma Analysis: Century Urban

• Century Urban is a San Francisco LBE that has significant experience helping public and

private clients understand the impact of affordable housing requirements.

• Most recently conducted Preliminary Field Research & Scenario Analysis of higher

inclusionary requirements in early 2016 for the Mayor's Office.

• Lined up to present their research at the next TAC meeting.
• Prepared to conduct further research, at the group's direction, to confirm, refine, and

extend that analysis, including potential considerations of alternative project types and scales, neighborhoods, percentages, or income levels.

Controller's Office ● City and County of San Francisco

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Facilitation and Good-Practices Review: Street Level Advisors

• Street Level Advisors Principal Rick Jacobus has substantial experience advising cities with

inclusionary housing ordinances, including in Seattle, Minneapolis, Denver, and Atlanta.

• Rick will prepare for the TAC a review of some good practices emerging from this work

and the experience of other cities.

• He will also facilitate the TAC meetings with the other consultants.

Controller's Office ● City and County of San Francisco

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Estimating How New Fees Affect Housing Production: Blue Sky Consulting

• Analysis and discussion of pro-formas is helpful to focus discussion on key economic

variables, and how a proposed fee structure affects the feasibility of a particular prototype.

• Given that every development site is different, pro-formas offers a limited ability to

estimate how a proposed fee will affect overall production of affordable and market-rate housing.

• Blue Sky Consulting has proposed an approach that would analyze the sensitivity of

recent housing production in the city to changes in developer returns, and using that experience to project future housing production under different fee assumptions.

• The outcomes of the Century Urban pro-formas would feed into Blue Sky's models.
• This approach is untested, and may not yield results that are helpful for policy
• development. However, we think the approach is worth pursuing, and the TAC would

appreciate considering the results.

Controller's Office ● City and County of San Francisco

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Concluding Report

• The Controller's Office plan to synthesize the consultants' work and prepare a final report

for the Board of Supervisors by July 31, per the legislation.

• We will also manage the consultants, provide support for the TAC, and data and research

support to the consultants.

Controller's Office ● City and County of San Francisco

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Questions?

Controller's Office ● City and County of San Francisco

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