Dear Friends,

In this eleventh semi-annual report, I write to share with TNDC's most loyal supporters and key stakeholders news of the past six months.

THE DEVASTATING FIRE AT FRANCISCAN TOWERS
The night of April 5 brought a watershed event in the lives of hundreds of people: the three-alarm fire at Franciscan Towers. It shot up the trash chute and along the roof; though the fire itself never penetrated into the building's apartment units, water and smoke damage have rendered it uninhabitable and caused millions in damage.

From the investigations so far, preliminary indications are that the Fire Inspector will deem the fire accidental. Not having received a written report yet, we don't know what has been identified as the cause.

All 124 residents were temporarily sheltered that evening, and thankfully none were seriously injured; yet they have suffered terrible losses, being displaced and having lost many or all of their belongings. TNDC has taken responsibility for re-situating them in affordable housing and bearing their temporary housing costs.

We held a tenant meeting soon after the fire, and it made a huge impression on me. People were angry at TNDC. "This housing was supposed to be safe, and it wasn't!" yelled one woman, and another said, in response to our caution about people's returning to an unsafe building to retrieve their belongings, "You are not listening to us!" There were poignant moments, too: "I'm pregnant and due in three weeks, will I have permanent housing for me and the baby before then?" Many worried, "What's going to happen after 29 days {when tenants' rights are triggered}? Are you going to make us homeless?"

I realize now that while we can build and maintain buildings according to code (the Towers was renovated in 1998) that's different from assuring that tenants will be "safe": some issues are simply beyond the control of the landlord. And sometimes "safety" comes at a steep price that tenants must pay: witness their living without their belongings for weeks in order for us to orchestrate an orderly retrieval process from a structurally-questionable building. But of course that's cold comfort to someone who has lost everything.

I now understand what a safety net is. If not for TNDC, many Franciscan Towers tenants would be returning to homelessness, and most would certainly be consigned to higher-rent housing than they enjoyed at the Towers.

These "Reports to TNDC Stakeholders" have never before contained an appeal for funds; our goal has always been solely to inform. Yet in response to this extraordinary situation, I ask that you consider making a donation towards the fire victims; every single penny will go directly to Franciscan Towers residents, paying for their temporary housing, or for moving or storing their belongings, or for helping them find new affordable housing. Thank you.

The building was fully insured, but TNDC is incurring costs far beyond the coverage because of our choice to support the residents. Franciscan Towers has been undergoing repairs to stabilize it, but it likely will not be reoccupied for 2-3 years. Taking advantage of its being vacant, we will seek financing to supplement the insurance proceeds and organize a larger rehabilitation to undertake additional work beyond the damage caused by the fire.

We've now hired four temps to act as "tenant liaisons," so that every resident has a TNDC staff person with whom to work on an individual basis. And we'll continue having tenant meetings, and distributing written "FAQ's," in order to be as transparent as we can. While tenants will not be able to move back in now due to the extent of the damage, our first floor was less impacted and so we have just completed repairing the space occupied by TASP as well as our offices. At least we can take comfort in the fact that programming for the children will not be further disrupted.

TAKING CARE OF BUSINESS
With some 250 people working daily to improve the Tenderloin and other neighborhoods in which we work, it is in the seemingly little things where progress lies, and people's lives change, person by person:

• TNDC's Tenderloin After School Program just completed its 11th annual College Tour, this year visiting New Orleans with 14 young people and 6 adults.
• Construction began at the Aarti Hotel, where TNDC will house 40 youth coming out of foster care or homelessness in a joint venture with our long-time partner Larkin Street Youth Services. The $50 million renovation of 220 Golden Gate, which will ultimately housing 172 chronically homeless people and a community medical clinic, is now 40% complete.
• TNDC completed the transfer of ownership of 12 of 13 properties from our sister agency Citizens Housing, bringing to 2,500 the number of apartments and residential hotel rooms owned and managed by TNDC.
• Led by community organizing staff and involving some 25 resident volunteers, our Tenderloin People's Garden (at the corner of Larkin and McAllister) continues to thrive, the most recent harvest yielding 70 pounds of lettuce, kale and other greens.

It is your belief in what we're trying to accomplish that makes all this possible, and we are truly grateful.

Sincerely,

Donald S. Falk
Executive Director