CED Committee 6/11/2024, live reporting thread:
CED meeting has started. Fife, Gallo, Jenkins and Chair Kalb all present, full quorum
There's apparently a new rule that Zoom speakers must sign up 24 hours in advance to speak. In person speakers still sign up to speak as current rules dictate. Wasn't aware of this.
Kalb instructed speakers that he will be flexible on the rule today because of how new the rule it is.
Keith Brown from Alameda Labor Council for "incentive package aimed at attracting more film production..."
First item is a Housing Accelerator Fund. HCD is aksing for a 10MM unsecured recourse loan to the Housing Accelerator, plus $30 MM in Measure U funds for financing. Would fund the City's Affordable Housing Acquisition/Rehabilitation Program. HCD's Megan Horl presenting 
On the ACAH. The program is meant to counteract housing flipping, helps AH developers acquire existing affordable rent buildings, provides long-term low rental prices through 55 year deed restriction affordability. Has awarded $54 MM since 2017 for 19 projects.
2/3 of ACAH projects have submitted tenant data, here's the data for those. 22% identify as Black, 53% identify as Latinx...
HCD lacks staff and resources to turn around the requests in time "we've been unable to compete with speculative buyers in real time"
The Housing Accelerator Fund is a third party body that pools funds from philanthropy other donors to partner with AH developers to make fast and flexible loans to preserve more homes more quickly, "designed to move at the speed of the private market"
HAF would act much more quickly than City HCD to provide funding and catch affordable housing as it enters market...City will provide Measure U funds to replace the bridge loans from HAF, the "accelerator"
There will be evaluation of the ACAH/HAF partnership beginning 12 months after the first loan is closed.
Jenkins asks how much funding is left in the Measure U fund. Director Weinstein replies, 68 MM has been allocated in the biennial budget, plus 22 MM additional funds allocated by Council. Total pot is $350 MM
Jenkins says that Black people are most at risk of getting displaced, evicted...but grouping together with other groups, BIPOC as the slide shows, doesn't seem like it gets to problem. How to address Black people who are more likely to be displaced grouping them w/other groups?
The response is pretty flat, it's focused on neighborhoods experiencing most displacement...that doesn't disaggregate Black people says Jenkins
Another POV of Jenkins issues....86% focus on BIPOC...but its only 22% Black. Jenkins says "this slide shows we need to do better by Blacks...I don't know if that's outreach...we can do better"
Fife says she agrees w/Jenkins. She says she helped create the program, she says that they worked with mostly rental advocates in District 5, but hte need by Black renters is intense, need more outreach to those communities "help to make those connections with community groups"
The request is for the next bond issuance..."contingent on mid-cycle budget being approved". There's an existing pipeline of projects, but no project is pre-authorized...
Gallo's misunderstood the goal of the project, it's not the HCD acquiring housing, it's third party AH
In recent years, more and more funding has been going to acquisition and development, because it creates more affordable housing more quickly, and prevents displacement instead of coming at the issue after the fact with development
About 17 speakers
Rebecca Foster, director of HAF. She says that the process creates community strength, wealth, goal of the organization is to provide quick funding to acquisition projects. Org is 8 years old has preserved over 1200 homes in the bay area
Foster: HAF partners with orgs and philanthropy to "deliver more stable homes, faster, together"
Eileen Shosha with Unity Council supports the funding...personally worked on 80 units of preservation with first ACAH round. supporting HAF...would allow UC to be more competitive buyers, streamline funding for bridge loans
Housing Consortium of the East Bay [HCEB] rep also in support. HCEB acquired Fremont Hotel, which had extremely low income tenants experiencing threat of eviction from market rate owner, providing permanent housing for lo income
Speaker is from Shade Tree, a collective, "struggled to cobble together funds to buy building..." with help from ACAH for refinancing
Angelina Cornejo from EBHO on ZOOM: "preservation is just one of the tools we have to keep families in their homes...once a year NOFA does not work in competitive market for small sites...we've missed out on opportunities"
Ironically ACAH is a bit of colloquial spanish for "here", not sure if that's on purpose.
Nico Nagel of Housing Action Coalition, a YIMBY org supports the legislation. Nagel was one of the principals in the PAC Oaklandside revealed this week may have been actually controlled by Libby Schaaf.
Non Profit Housing Association of Northern California also supports
No speaker was against the Housing Accelerator/ACAH item.
to clarify: the 10 MM would go to the HAF, a third party org. 30 MM would be allocated from Measure U to ACAH, an HCD program, to finance the loans.
Passed unanimously to go to June 18 Council meeting on consent.
This item came out of an attempt of the Building Trades to add a PLA to Measure U funded affordable housing construction. It would have slowed down and stopped allocations until the PLA was created. Largely opposed by AH developers and smaller contractors.
I wrote about all this here oakland-observer.ghost.io/building-trade…
building trades attempt failed, but they did get a promise for CAO to hold a stakeholder process on the idea of project labor agreements [union agreements] on AH projects funded by Measure U. City Admin Jestin Johnson is giving the report back on the stakeholder process since Feb
Giving away the end here, every single AH org involved in input opposed a PLA, arguing that current labor standards are great, require prevailing wage, obviating non union shops and PLAs increase costs, and reduce the number units created with limited funds
Johnson's slide on the four stakeholder groups
The item packet contains several letters from the area's prominent AH developers all making it very clear they don't support a PLA for Measure U funds. oakland.legistar.com/LegislationDet…
Johnson says there's no consensus on PLA. Construction/unions love PLAs. Local, small local minority contractors oppose; construction workforce/ed partners also disliked PLAs. AH think current standards are sufficient. Racism comes up a lot outside unions
Johnson saying there's no consensus actually buries the lede. All but the organizations that wanted the PLA don't want the PLA, and it's not surprising.
process did tease out fact that workforce orgs & smaller contractors don't feel that current structure even works well, & would become worse w/PLAs. AH thinks the process currently works well. If anything, the process revealed there needs to be another process, not based on PLA
Again, no one wants PLAs but the Building Trades, the union umbrella that tried to force them through and failed.
the City has three recommendations, two of them are to strengthen current processes. Stakeholders said that DWES and labor standards enforcement is lacking, it would require investment of staff and resources. The third is a PLA, which no one but the building trades seems to want
More on the options from DWES dept, City's workforce standards haven't met their full potential because the City hasn't fully funded the DWES. On the regional plan for labor standards based on BAHFA standards, it could require a higher prevailing wage, depending on calculations
The Building Trades' PLA concept is based on its agreement with the County on Measure A-1 AH bond. Any project with 80 or more unit must have a union PLA. Again, no other stakeholder wants that.
"Big feedback that came out...this could reduce the number of units with Measure U funding, and could increase per unit cost which would reduce competitiveness" for state level grants
The slide goes into all that
Staffer says that there's already high union participation on AH projects
The report references 2 Rand studies and a UC Berkeley Labor Center study. The two Rand studies find varying increases to price per unit, fewer units UCB study finds no increase
The next steps. The legislation that started all this committed the CAO to look into the idea of labor standards, but not necessarily a PLA. Neither are actually required in the NOFA
Various Building Trades members reiterating they want the PLA, Sprinkler Fitters rep here. He's saying that without union PLAs, there's prevailing wage theft "prevailing wage is not enough"
Jason Gumataotao, w/IBEW, also wants PLA. He says that the A-1 PLA shows the benefits. A-1 with PLA goals: 3800 units, 40% local workforce, 5% local disadvantaged workers & small contractors. Exceeded all goals. There's going to be a lot of union speakers here about 30 speakers.
A building trades initiative for expanding union work, rep: "We acknowledge that Building Trades have an exclusionary history" but have initiated workforce feeders and apprenticeship programs
Worth noting that Jenkins and Bas originally proposed the Building Trades PLA legislation. Both have received lots of Building Trades support in their elections
The Building Trades are arguing that the process didn't have enough information, they keep referencing A-1 PLA outcomes. This speaker says that A-1 has an opt-out process, but no AH developer has felt the need to access it.
I forgot to add here that HCD was also opposed to adding the PLA, firstly because the process by which Building Trades wanted to insert it, as holding the NOFA until the PLA was created, then they also said it would add costs, reduce units.
Non Profit Housing Association of Northern California. They say they are open to Options 1 and 2, but not PLA. They were one of orgs that sent a letter opposing PLA..."difficult to meet other goals Oakland has, Local Business...AH already use unions, but have flexibility on goals
Another AH advocate: "urge City to make existing labor standards work better before adding more..." They have other suggestions, like getting rid of the Oakland office requirement for small biz
Capri Roth with EBALDC, w/over 2k units of AH and business space...currently have 1k units that have to be developed in highly competitive finance environment. "current standards are serving community well, expansion for Measure U unnecessary"
Speaker from RCD reiterates principles from letter, supports first two options, not PLA.
To cut to the quick, no AH supports a PLA, but they do support various strengthening of current standards
Elaine Brown of OAW, says she pays prevailing wages "concerned about the racism in the unions...we could not get Black workers from the union..." sat down w/Andreas Cluver asked for Black workers. She says Cluver said: ...'Blacks have problems with retention...problems with math"
Brown says she is quoting Cluver on this, "I quote"
Lisa Howlett of Midpen, also does not support a PLA. Supports Option 1, open to Option 2.
Speaker says that she is a BMR resident at 385 14th st. [Atlas Apts], a luxury building. She says that 2023 limits are frozen "that puts myself and the 27 other BMR residents [out of 600 market rate residents]...increases our rents dramatically..." she says she fears homelessness
Dr Timothy Harpes of Missionary Baptist Church, which runs a worforce program: He says after union apprenticeship, still have trouble finding jobs, "there's a struggle to get on the site & work for some of these companies...there's yet work to be done to get apprentices working"
Norcal Carpenters doesn't support PLA, but supports option 2. Likely because they are not in the Building Trades and may not benefit.
Another Norcal Carpenters says that Oakland has more units stuck in financing process than other cities
It's unfortunate that Elaine Brown understood those comments...I did not make those comments. He says that contrary to CAO's statement, Building Trades don't support option 2, they only support the PLA, option 3. He says that developers made all these same arguments on A1
That was Cluver, btw.
This union speaker says prevailing wage only projects increase "lies, exploitation...and human trafficking". He says that there's a current project on prevailing wage that is being accused of trafficking.
Mercy Housing rep: union said a PLA would have 3% more union participation, a $2 MM increase. Disputes union claim AH developers didn't choose A-1 opt out, "it would add time & risk timeline, so its not surprising"...projects had 79 units instead of 80 to avoid threshold for PLA
Jeff Levin of EBHO, senior policy director: "not in favor of adopting additional standards...do support strengthening and enforcement of existing standards, do support option 2..." Levin says a PLA would affect equity contractor goals, containing development costs
Levin: "new standards could delay or impact September NOFA..." Levin says that AH are paying prevailing wages, and contracting with small/minority biz and already at very high union rates, 85%, standards would restrict small contractors, often minority
Now council deliberation
Jenkins: "this is the most confusing item I've ever experienced from council...its like being put in a blender"
Jenkins asks about data on Black workers, Black contractors under existing standards. HCD Director "we have very strict labor standards" reference to his statement "without labor standards" as current situation
Another HCD staffer says they have the data as part of several processes, but they don't have it aggregated.
Weinstein: "we apply our standards, local hire, prevailing wage, small biz contractors..."
Jenkins is asking whether Black workers/contractors are better served by current standards or by PLA. HCD says that Black contractors hire Black workers...say that its difficult to become union...
Sorry that was a DWES staffer.
Weinstein says that the data out there on PLAs for AH is thin, because there's very few munis that have AH PLAs. But on A1: "threshold was 80 units & a significant # of projects came in under threshold, to avoid the PLA"....issues is not just cost, but lost opportunity on units.
Jenkins asks Building Trades and union retention of Black workers A1. Cluver says that they did an analysis, "we had done much better in recruitment of Black....with partners". He acknowledges that retention of Black apprecentices was lower than other groups.
Its surprising to hear Cluver being honest that they don't have Black workers at appropriate level.
Darlene Flynn, Director of Race/Equity, says she's been analyzing PLAs for almost 10 years. "multiple opportunities by City to work out these issues of under-inclusion of Black workers...everyone of those convos have ended in a stalemate because of refusal to change practices"...
Flynn: "if we are just now seeing them say they are going to do something about systemic racism in Building Trades...I'm very concerned that a PLA on AH is the worst possible opportunity for a PLA" it will penalize those that need housing, and continue exclusion.
Flynn: "we still do not have data from the Building Trades...we don't have the data and I've been asking for it for 8 years...as you can hear in my voice, this is extremely serious and we have to get this right if we are going to advance" equity....
Hard to exaggerate how negatively Flynn, the City's Director of Race/Equity, portrayed the Building Trades reputation on Black workforce.
Flynn in a response to Kalb's response about how projects with PLA compare to non-PLA for AH: "I tend to believe my eyes when I go to these construction sites and see no Black workers".
Flynn says the Building Trades data is so paltry there's nothing to compare. Flynn says that being in a PLA brings too many reqs for small businesses, that are Black/Women owned, more likely to hire Black/Women
Jenkins asked to hear from Dr Stephen Pitts, from UC Berkeley Labor. He says that apprenticeship data is available, but Trades on the job is "not easily done"
Fife says she wants more info on A1
Its worth noting, Kalb incurred the wrath of the Trades after years of support by being skeptical about Howard Terminal. Jenkins got sudden Trades support in his D6 run. Bas is a regular recipient of Trades funds. They give with both hands, and also turn on a dime.
Trying to keep this account more about biz, but Gallo is talking.
Jenkins makes a motion to leave the item in committee, with analysis of A1. Kalb asked her to query AH developers. Weinstein says that Committee heard from them all today: "the developers are very clear that the cost per unit goes up with the PLA..."
Weinstein again notes the number of projects that deliberately came under the 80 unit threshold to avoid the PLA. She's clearly saying the AH developers came in under the threshold to avoid the PLA.
Weinstein again "those are the same stakeholders" that she is being asked to query. They were already in the stakeholder meetings and unanimously said the PLA was a no-go
Looks like Kalb and Jenkins are basically asking Weinstein to come back and tell them the same thing on July 9.
They voted unanimously to continue the item with more analysis on A1
They're on to the annual reports for Cannabis Commission for 22 and 23. They had to bundle the reports because they had trouble with quorum. oakland.legistar.com/LegislationDet…
It looks like the CC has suffered from Council failing to appoint Commissioners and fill vacancies. I literally see Tanya Boyce's name on the list of commissioners, who lives in Texas
Chaney Turner pointing out that the unregulated market can undercut regulated merchants, they have no overhead, or requirements
Chaney recounting the 2020 and 2021 robbery caravans [somehow forgotten when "its never been like this" claims are made, neglecting that no one had ever seen anything like robbery caravans]
Turner says that "delayed response" time from OPD is responsible for emboldening cannabis theft..."of 8 arrested in 2021, only 2 people were from Oakland"...
That's the end of the meeting
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