[Housing and Homelessness Solutions on May 22, 2023.]
[00:00:04]
WE'RE GOING TO GO AHEAD AND START WITH APPROVAL OF THE MINUTES FROM THE PREVIOUS MEETING.
ANY DISCUSSION? HEARING NONE. ALL THOSE IN FAVOR VOTE AYE.
ALL RIGHT. WE'RE GOING TO GO AHEAD AND MOVE RIGHT INTO OUR BRIEFING ITEMS. FIRST BRIEFING UPDATES ON THE DALLAS HOUSING FINANCE AND PUBLIC FACILITY CORPORATION'S.
AT THE REQUEST OF COMMITTEE MEMBERS, I'VE ASKED STAFF TO GO OVER THE HIGHLIGHTS FROM EACH OF THE SLIDES, FROM EACH OF THE PRESENTATIONS, AND NOT GO THROUGH WORD FOR WORD EACH SLIDE.
I THINK IT'LL SAVE US SOME TIME AND IF WE'VE DONE OUR HOMEWORK, AS WE'RE EXPECTED TO DO, WE'VE ALREADY READ OVER THE BRIEFING AND IT'S JUST A MATTER OF US GOING OVER THIS FOR THE GENERAL PUBLIC. SO AT THIS TIME, I'LL TURN IT OVER TO OUR HOUSING AND NEIGHBORHOOD REVITALIZATION DIRECTOR, DAVID NOGUERA.
HI, GOOD MORNING, CHAIRMAN AND MEMBERS OF THE HOUSING AND HOMELESS SOLUTIONS COMMITTEE.
MY NAME IS DAVID NOGUERA AND I SERVE AS THE DIRECTOR OF HOUSING AND NEIGHBORHOOD REVITALIZATION.
AARON, GOOD MORNING, EVERYBODY THANKS FOR INVITING US HERE.
SO, YEAH, WE'LL JUST GET RIGHT INTO IT.
WE'RE GOING TO GO THROUGH THE BASICALLY THE BACKGROUND OF THE PFC AND THE HFC.
I'M PRIVILEGED TO BE ABLE TO WORK WITH THEM AND TO DO A LOT WITH THEM.
I KNOW THAT'S BEEN AN ISSUE PREVIOUSLY, SO JUST LET ME KNOW SO WE CAN GO TO THE NEXT SLIDE.
THIS IS JUST AN OVERVIEW OF WHAT WE'RE GOING TO GO THROUGH TODAY.
OKAY. SO THE HFC AND THE PFC, WE'RE BASICALLY USING TAX EXEMPTIONS TO LEVERAGE THE, I GUESS, THE SAVINGS ON OPERATING COSTS TO CREATE MORE AFFORDABLE HOUSING THROUGH THOSE SAVINGS AND OPERATING COSTS.
WE DO IT THROUGH VARIOUS VARIOUS MECHANISMS. BUT JUST SO WE DON'T READ THESE SLIDES WORD FOR WORD, WE CAN WE CAN KEEP GOING QUICKLY.
THIS IS JUST KIND OF AN OVERVIEW CHART OF WHAT THE DIFFERENCES ARE AND HOW WE USE THE DIFFERENT CORPORATIONS TO USE TO CREATE AND ALSO TO ACQUIRE AFFORDABLE HOUSING.
WE USE LOW INCOME TAX CREDITS AND ALSO A ESSENTIAL FUNCTION BONDS ON THE HFC SIDE, THE PFC SIDE HAS A LITTLE DIFFERENT STRUCTURE LEGALLY, AND WE CAN WE CAN HIT KIND OF THAT TARGETED WORKFORCE AREA, WHEREAS THE HFC, WE CAN HIT, YOU KNOW, A LITTLE DEEPER AFFORDABILITY DOWN TO 30% LEVEL USING THOSE VARIOUS PROGRAMS. WE CAN KEEP GOING.
AGAIN, THESE ARE JUST RECENT ACCOMPLISHMENTS.
YOU KNOW, WE HAVE TEN PROPERTIES THAT THE HFC HAS COMPLETED.
WE HAVE 20 IN PROGRESS RIGHT NOW.
AND THEN THE PFC, WE'VE ONLY BEEN RUNNING IT, YOU KNOW, MAYBE A YEAR AND A HALF.
SO WE HAVE 13 THAT ARE APPROVED, 3 HAVE ACTUALLY BEEN CLOSED AND ARE UNDER CONSTRUCTION.
AND SO WE'RE EXCITED TO TO GET THOSE ALL COMPLETED AND BUILT AND SEE WHERE THAT TAKES US.
THESE ARE BASICALLY USED TO FINANCE THE NEW CONSTRUCTION AND RENOVATION OF AFFORDABLE HOUSING.
THE RENTS THERE ARE TYPICALLY RESTRICTED UP TO 60% AMI AND SO THOSE RENTS, THE NUMBER OF UNITS THAT THEY RESTRICT TO THOSE RENT LEVELS, IT DETERMINES WHAT LEVEL OF TAX CREDITS THAT THEY WILL BE ISSUED AT THE STATE LEVEL.
SO THIS IS THIS IS WHAT WE'VE BEEN DOING A LOT OF LATELY.
IT'S KIND OF A RELATIVELY NEW STRUCTURE.
THIS IS THE MECHANISM WE'VE BEEN USING TO ACQUIRE NEW PROPERTIES.
THESE ARE THE ONES THE ONES WE'RE ACQUIRING ARE ALL VERY CLASS-A IN HIGH OPPORTUNITY AREAS.
AND SO THIS IS SOMETHING THAT THAT WE'VE BEEN ABLE TO DO RECENTLY.
[00:05:01]
IT'S BEEN REALLY SUCCESSFUL SO FAR, AND WE'RE GOING TO CONTINUE TO LOOK AT IT AND THE EFFECTIVENESS.LET'S MOVE ON TO THE NEXT ONE.
AN EXAMPLE OF A PROJECT, A RECENT PROJECT FROM THE HFC.
I'M SURE YOU GUYS ARE ALL AWARE OF THE PALLADIUM REDBIRD PROJECT.
IT'S PART OF THAT LARGER REDEVELOPMENT EFFORT.
SO THIS WAS A CLASS A 300 UNIT PROPERTY.
YOU KNOW, IT'S BEEN AWARDED MULTIPLE DIFFERENT TIMES.
SO IT'S BEEN ABLE TO KIND OF RESET THE MARKET STANDARD THERE.
IT'S BEEN ABLE TO PROVIDE AFFORDABILITY, BUT WITHOUT SACRIFICING THE QUALITY OF RESIDENTS.
AND SO THAT'S BEEN REALLY GREAT FOR THE COMMUNITY.
AND HOPEFULLY, YOU KNOW, IT CONTINUES TO SPUR MORE REDEVELOPMENT IN THAT AREA AS IT HAS ALREADY.
AND WE'VE SEEN, YOU KNOW, A LOT OF DIFFERENT PROJECTS, I GUESS, SPUR OFF FROM THAT.
IT'S BEEN A GOOD CATALYST FOR FOR THAT AREA.
JUST SOME PICTURES, YOU KNOW, TO BREAK UP ALL THE WORDS HERE.
BUT IT'S A REALLY HIGH QUALITY CONSTRUCTION.
IT'S BEEN GREAT FOR THAT AREA.
ALL RIGHT. ANOTHER EXAMPLE OF THE MUSE IN MIDTOWN.
THIS HASN'T CLOSED YET, BUT THIS IS AN EXAMPLE OF THE ESSENTIAL FUNCTION BONDS.
AGAIN, LIKE I SAID, THIS HAS BEEN A CLASS A PROPERTY.
IT'S A FULLY FUNCTIONING OPERATING PROPERTY.
IT'S ALREADY BUILT. IT'S ALREADY IN PLACE.
SO WE DON'T HAVE TO GO THROUGH ZONING.
WE DON'T HAVE TO DO ALL OF THOSE THINGS.
AND SO THAT'S FOR US IS A HUGE ADVANTAGE BECAUSE NORMALLY, YOU KNOW, TO GET A PROPERTY BUILT AND PERMITTED AND EVERYTHING, THAT COULD BE UP TO THREE YEARS, MAYBE FOUR YEARS, BUT THIS IS JUST IMMEDIATE AS SOON AS WE CLOSE.
LET'S KEEP GOING HERE. AND AGAIN, PICTURES, YOU CAN SEE THE HIGH QUALITY ASSET THERE.
ALL RIGHT MOVING ON TO THE PFC.
SO THE PFC IS IS A PARTNERSHIP.
AGAIN, IT'S A DIFFERENT CORPORATION FROM THE HFC.
THE OWNERSHIP STRUCTURE IN THE PROJECTS ARE A LITTLE DIFFERENT.
AND TO DATE SO FAR, ALL WE'VE DONE HAVE BEEN GROUND UP DEVELOPMENTS.
AND SO THESE ARE ALL BRAND NEW.
THESE ARE ALL PROJECTS THAT THAT DON'T EXIST AND WE'RE CREATING NEW UNITS WITH THESE.
SO AN EXAMPLE HERE, THIS OAKHOUSE AT COLORADO IS ONE WE'VE RECENTLY CLOSED AND I BELIEVE.
SORRY. NEXT SLIDE. COUNCILMAN WEST DISTRICT.
YOU KNOW, IT'S SOMETHING THAT WE CAN BE PROUD OF AS A CITY THAT WE'RE PROVIDING.
YOU KNOW, 50% OF THESE UNITS ARE GOING TO BE AFFORDABLE AT THE 80% LEVEL.
AND SO THIS IS IN A GREAT LOCATION.
AND SO THAT'S KIND OF WHERE THE PFC HAS ITS ADVANTAGES.
AND THAT'S KIND OF WHERE WE'VE TARGETED THE USE OF THIS STRUCTURE.
JUST A GENERAL OVERVIEW OF WHERE THESE PROJECTS ARE.
YOU CAN SEE WE'VE KIND OF SPREAD OUT THROUGHOUT THE METROPLEX OR THROUGHOUT THE CITY OF DALLAS.
SORRY. SOME ARE CLOSED, SOME ARE IN CLOSING AND SOME ARE PLANNED.
OBVIOUSLY THE DEVELOPERS WILL BRING THE APPLICATIONS TO US.
SO WE'RE NOT GOING OUT AND ACTIVELY, YOU KNOW, SAYING, HERE'S SOME LAND, BRING US A PROJECT.
SO WE ARE LIMITED A LITTLE BIT BASED ON WHAT DEVELOPERS WILL BRING TO US.
SO WE'RE STILL KIND OF ANALYZING WHAT HAS GONE DOWN.
SO THIS COULD BE CHANGING DAY BY DAY HERE.
BUT GENERALLY, THEY'RE JUST TRYING TO ENACT SOME FURTHER GUARDRAILS THAT HAVE BEEN, I GUESS OTHER JURISDICTIONS HAVE USED THE PFC IN A WAY DIFFERENT THAN WE HAVE.
WE'VE BEEN DOING IT THE RIGHT WAY, SO IT'S SOMETHING WE CAN BE PROUD OF.
OTHER DISTRICTS, I DON'T KNOW.
BUT WE WILL SEE WHAT HAPPENS IN THE LEGISLATURE THIS WEEK AND WE'LL UPDATE YOU GUYS ACCORDINGLY.
[00:10:09]
ALL RIGHT NEW BUSINESS OPPORTUNITIES.SO ALSO THROUGHOUT THE REVENUE THAT WE'VE BEEN ABLE TO COLLECT THROUGH THE HFC AND THE PFC AND ALSO THROUGH SOME OTHER INITIATIVES, WE'RE TRYING TO TARGET ALSO SINGLE FAMILY HOME BUYERS.
AND SO WE CAN ACT AS AN ISSUER THROUGH THE STATE TO ALLOW BOND FUNDS.
THIS WILL PROVIDE LOW COST MORTGAGES TO THOSE RESIDENTS WHO WILL QUALIFY AT THESE INCOME LEVELS.
AND SO FAR, I MEAN, IN ABOUT SIX MONTHS, WE'VE DONE 90 LOANS, OVER $22 MILLION IN HOME LOANS.
AND SO THIS IS SOMETHING THAT WE'RE GOING TO CONTINUE TO DO.
AGAIN, THIS IS THIS IS SOMETHING THAT WE'RE PLANNING IN THE FUTURE.
BASICALLY, YOU KNOW, WITHOUT READING THESE PARAGRAPHS WORD FOR WORD, WE CAN USE LARGER CHUNKS OF THIS MONEY, WE CAN DEPLOY IT FASTER AND WE CAN GET IT OUT TO THE COMMUNITY MUCH MORE EFFICIENTLY.
IF WE CAN FUNNEL SOME MONEY THROUGH THESE CORPORATIONS AS A SUB RECIPIENT.
DO WE HAVE ANY QUESTIONS? THAT'S THE PRESENTATION.
I ONLY HAVE A COUPLE OF QUESTIONS.
I MAY HAVE SOME DIFFICULTY PUTTING UP THE PRESENTATION, BUT FIRST OF ALL, THE IN THE PRESENTATION TALKED ABOUT THE MUSE, WHEREAS THE MUSE LOCATED? THE MUSE IS BASICALLY A BLOCK NORTH OF THE GALLERIA MALL [INAUDIBLE].
EXCELLENT. AND IT WAS ONE I LOOKED AT THIS IN THE PRESENTATION.
IT WAS TALKING ABOUT HOW IT WOULD MAKE IF THIS PARTICULAR BILL PASSES, IT WOULD MAKE IT UNAFFORDABLE AND REALLY, YOU KNOW, NOT LOGICAL TO CONTINUE.
DO WE KNOW WHERE THAT THE SESSION ENDS ON FRIDAY? DO WE KNOW WHAT THE STATUS OF THAT IS? SO I THINK ON FRIDAY, THERE WAS AN AMENDMENT PASSED ON THE SENATE FLOOR THAT KIND OF.
SO IT MODIFIED A LOT OF THOSE AMENDMENTS THAT WERE ADDED ON IN THE PREVIOUS HOUSE SESSION.
AND SO SOME OF THOSE REQUIREMENTS ARE NOW NOT IN THE CURRENT VERSION OF THE BILL.
SO WE'RE JUST GOING TO HAVE TO SEE WHERE THAT ENDS UP, IF THEY'RE GOING TO TAKE IT BACK INTO A COMMITTEE TO KIND OF ADJUST SOME OF THOSE ON THE FINAL THING OR IF THEY'RE JUST GOING TO PASS IT BASED ON THE AMENDMENT THAT WAS PROVIDED BY SENATOR BETTENCOURT, I BELIEVE.
AND SO THAT'S JUST KIND OF PENDING IN THE HOUSE FOR FINAL APPROVAL.
AND I THINK, YEAH, WE'RE GLAD TO HAVE OUR GOVERNMENT RELATIONS DIRECTOR WITH US.
CARRIE ROGERS, DIRECTOR OF GOVERNMENT AFFAIRS.
BUT BASICALLY, BASED ON EVERYTHING THAT WE SEE, WE'RE NEUTRAL ON THE BILL NOW BECAUSE THEY'VE MADE AMENDMENTS THAT ARE REALLY TARGETED MORE TOWARDS, AS STAFF WAS SAYING, THE BAD ACTORS.
YEAH, I THINK I'LL READ THE SUMMARY IF THAT'S OKAY WITH THE AGREEABLE WITH THE COMMITTEE.
IF YOU COULD PROVIDE US A WRITTEN SUMMARY AND JUST EMAIL IT TO ABSOLUTELY ALL THE COUNCIL MEMBERS.
CAN YOU HEAR ME? THERE WE GO. OKAY.
ON PAGE SIX, CAN WE TALK A LITTLE BIT ABOUT THE SERVICES PROVIDED TO TO THE RESIDENTS? IS THIS SOMETHING THAT IS GENERIC OR STANDARD OR DO WE TARGET IT TOWARDS THE DEMOGRAPHIC OR THE MAKEUP OF THE INDIVIDUALS? USING THE TAX CREDIT, THE 4% TAX CREDIT PROGRAM? THE LIHTC PROGRAM REQUIRES THAT EACH PROJECT PROVIDE A CERTAIN AMOUNT OF SERVICES THAT'S PART OF THEIR SCORING THAT MAKES THEM QUALIFY FOR THOSE FUNDS.
AND SO BEFORE THEY RECEIVE FUNDING, THEY'LL HAVE TO COMMIT TO A CERTAIN AMOUNT OF SERVICES.
[00:15:05]
AND THEN THAT'S WRITTEN INTO KIND OF THEIR THEIR BOND DOCUMENTS AND THINGS.SO THOSE COULD BE, YOU KNOW, HAVING A FOOD PANTRY.
IT COULD BE, YOU KNOW, JOB TRAINING, IT COULD BE A SCHOLARSHIP PROGRAM FOR THE RESIDENTS ON SITE.
ARE THEY OR IS THE DEVELOPER TIED DOWN TO THOSE THAT THEY PRE-SELECT OR CAN THEY BE FRAMED AROUND WHAT'S BEST FOR THE PEOPLE THAT ARE EVENTUALLY GOING TO LIVE THERE? RIGHT. SO WHEN THEY WHEN THEY APPLY TO THE CITY TO THIS PROGRAM, WE HAVE KIND OF A LITTLE BIT OF LEEWAY.
WE CAN SAY, HEY, YOU KNOW, THIS SITE MIGHT BE A LITTLE TOO FAR OUT.
AND THEN THE NEXT PAGE ON EXISTING PROPERTIES, ARE WE PUTTING IN A RADIUS OF HOW MANY PROPERTIES CAN BE THAT ARE PRE EXISTING THAT COULD BE THAT QUALIFY? IN OTHER WORDS, HOW DO WE ENSURE THAT WE DON'T HAVE PROPERTIES RIGHT NEXT TO EACH OTHER, EVEN IF IT'S IN A HIGH OPPORTUNITY AREA? RIGHT. SO I THINK WE DON'T WE DON'T HAVE A WRITTEN DOWN POLICY.
I THINK STAFF AND THE HFC LET ME SPEAK TO THAT. SO, SO THE DISTANCE BETWEEN PROJECTS IS REGULATED BY THE STATE, RIGHT.
THE STATE WILL TELL YOU WHERE PROPERTIES CAN BE LOCATED BASED ON WHAT'S ALREADY THERE.
SO BEFORE DEVELOPERS EVEN COME TO US, THEY'VE DONE THAT ANALYSIS BECAUSE THEY KNOW EVEN IF THEY HAVE A RESOLUTION, IF THEY HAVEN'T MET THE STATE STANDARDS, THE PROJECT'S DEAD ON ARRIVAL. OKAY, THAT'S ALL I HAVE, MR. CHAIR. THANK YOU. THANK YOU, MR. VICE CHAIR. NEXT, WE'LL GO WITH COUNCILMAN SCHULTZ.
YOU KNOW, THERE'S A LOT OF PUSHBACK, AS WE SAW BY THE LEGISLATION THAT WAS INITIATED ON THIS AND PART OF THE CHALLENGE AND I THANK YOU, DIRECTOR NOGUERA, FOR BRINGING FORWARD AND BEGINNING TO DO THAT WORK ON HELPING PEOPLE UNDERSTAND THE DIFFERENCE BETWEEN THIS AND WHAT PEOPLE CALL MARKET RATE AFFORDABLE.
SO I THINK THAT WHAT WE NEED THAT WOULD BE EXTREMELY HELPFUL FOR THE PUBLIC IS TO UNDERSTAND, DO OUR OWN MARKETING PIECE, IF YOU WILL. I'M CALLING IT MARKETING, BUT IT'S REALLY AN INFORMATION PIECE THAT WOULD HELP PEOPLE UNDERSTAND THAT WHEN YOU HAVE MARKET RATE AFFORDABLE IN A NEIGHBORHOOD, IT USUALLY MEANS THAT IT'S RUNDOWN AND DERELICT BECAUSE IF YOU CAN AFFORD THAT RENT, IT'S USUALLY NOT A HIGH QUALITY PROPERTY.
SO I THINK THAT PIECE AND UNDERSTANDING THAT IT'S NOT JUST ABOUT THE RENTS IN THE AREA WOULD GO A LONG WAY TOWARD SOME OF THE NIMBYISM ABOUT SOME OF THESE DEALS. SECONDLY, I THINK ON THE TAX LOSS COMPARISON, WHICH IS THE OTHER PRIMARY ARGUMENT AGAINST THIS, WE REALLY NEED TO UNDERSTAND IN THE LONG TERM THE TAX CONSEQUENCES IN THE IMMEDIATE AND THEN IN THE MEDIUM AND THEN IN THE LONG VERSUS THE ULTIMATE VALUE OF THE ACQUISITION THAT WE'RE THAT WE'RE WORKING WITH.
AND I THINK HELPING THE PUBLIC UNDERSTAND THAT JUST LIKE WHEN WE PUT IN A NEW ROAD, IT MAY COST $1 MILLION, BUT IT'S GOING TO SAVE US X OR Y, YOU KNOW, THAT PIECE IS VERY IMPORTANT. AGAIN, FINALLY, THE OTHER BIG ARGUMENT AGAINST THESE KINDS OF PROJECTS IS THE IMPACT ON HOUSING VALUES IN THE AREA.
AND WE KNOW THAT WHEN YOU PUT IN CLASS A PROPERTIES, REGARDLESS OF WHAT THE RENT IS THAT'S BEING CHARGED, THAT IT INCREASES THE VALUE OF HOMES IN THE AREA.
AND WE HAVE NOT EFFECTIVELY MARKETED THAT TO THE PUBLIC AS WELL.
MY SECOND QUESTION IS, COULD YOU JUST DIG IN A LITTLE BIT MORE ABOUT THE PIECE, THE INFORMATION THAT YOU PUT? I THINK IT WAS SLIDE.
COULD YOU TALK A LITTLE BIT ABOUT THAT? AND WHAT IS THAT? OH, HERE IT IS IT'S SLIDE 17.
RIGHT? AND HOW WE COULD PIVOT, MAYBE NOT PIVOT AWAY FROM BUT I GUESS ADD TO THE OPPORTUNITIES.
[00:20:05]
RIGHT SO I MEAN, CURRENTLY WE HAVE A FEW INITIATIVES.I GUESS, YOU KNOW, WE'RE LIMITED TO WHAT OUR PROGRAM CAN DO.
BUT AS WE KIND OF AS WE GAIN MORE REVENUE AND AS WE GET MORE FUNDS AVAILABLE, WE CAN WE CAN ALLOCATE THESE FUNDS TO CERTAIN ACTIVITIES.
AND SO THE BOARD OF THE HFC HAS INDICATED THAT THEY WANT TO BUILD GENERATIONAL WEALTH THROUGH SINGLE FAMILY HOUSING BECAUSE, YOU KNOW, A LOT OF WHAT WE DO IS TARGETED ON MULTIFAMILY HOUSING AND THAT'S THAT'S THE BEST WAY TO GET A LOT OF UNITS ON THE GROUND QUICKLY.
BUT, YOU KNOW, WE'RE NOT SOLVING THE ENTIRE PROBLEM, WHICH IS GENERATIONAL WEALTH.
YOU KNOW, HOW DO WE CREATE THAT FOR OUR CITIZENS OF LOWER INCOME? AND SO WE'RE USING SOME OF THESE FUNDS THAT WE'RE RECOVERING FROM EITHER REVENUE OR THE TAXES THAT WE CAN RECOVER, WHAT PORTION WE CAN.
WE'RE PUTTING THAT INTO A FUND TO ALSO SUBSIDIZE SINGLE FAMILY DEVELOPMENT FOR LOWER INCOME FOLKS.
SO THAT'S KIND OF A FLEDGLING PROGRAM.
WE'RE STILL GETTING THAT OFF THE GROUND.
BUT THIS TDACA PROGRAM IS ALREADY HERE.
THAT'S JUST SOMETHING THAT THROUGH OUR CORPORATIONS, WE'RE ABLE TO ACCESS THIS CHUNK OF MONEY THAT, YOU KNOW, WE CAN JUST IMMEDIATELY DOLE IT OUT TO THOSE WHO QUALIFY THROUGH OUR NETWORK OF LENDERS THAT ARE THAT ARE QUALIFIED THROUGH THE STATE.
AND SO IT DOESN'T EVEN REALLY TAKE THAT MUCH MANPOWER ON THE HOUSING DEPARTMENT'S END.
SO I KNOW THE COUNTY IS DEEPLY COMMITTED TO THIS AS WELL.
SO ARE THERE OPPORTUNITIES? HAVE WE YET SPOKEN WITH THEM ABOUT PARTNERSHIPS? WE HAVEN'T YET SPOKEN WITH THE COUNTY, BUT.
THAT MAY BE WORTH EXPLORING AS WELL.
I THINK IT WAS YOU THAT ASKED IT.
MAYBE IT WAS YOU CHAIR I APOLOGIZE IS REALLY UNDERSTANDING.
SO I WANT TO MAKE SURE THAT WE VERY CAREFULLY UNDERSTAND AND THAT THE CITY OF DALLAS RESIDENTS UNDERSTAND OUR COMMITMENT TO HAVING THESE SPREAD THROUGHOUT THE CITY AND THAT WE ACTUALLY CANNOT CONCENTRATE THE POVERTY AS WE DID BEFORE.
SO THERE'S TWO PIECES TO THIS.
ONE IS THIS ISN'T ABOUT POVERTY, RIGHT? FOR A LOT OF IT, PARTICULARLY THE PFC DEALS, THESE ARE NOT ABOUT POVERTY.
AND THEN NUMBER TWO, REALLY MAKING SURE THAT EVEN THOUGH THERE'S THERE ARE PARTS OF DALLAS THAT ARE EAGER FOR NEW MULTIFAMILY, WE JUST CANNOT PUT THEM THERE BECAUSE WE HAVE TO PUT THEM IN OTHER PLACES.
AND SO I'M NOT SURE THAT WE'VE BEEN QUITE AS DELIBERATE ABOUT SAYING THIS IS WHERE WE WANT TO HAVE THEM, WHETHER OR NOT WE AS COUNCIL MEMBERS OR OUR NEIGHBORS IN OUR DISTRICTS WANT THEM.
THIS IS WHERE IT HAS TO BE, JUST LIKE ROADS.
AND SO THAT PIECE, I THINK I'M ASKING YOU ALL TO BE VERY DELIBERATE WITH US AND TO SIT DOWN WITH US AND TO SAY, YOU KNOW, THIS IS WHERE IT CAN BE IN YOUR DISTRICT AND THIS IS WHERE IT CANNOT BE IN YOUR DISTRICT.
AND I THINK THAT WILL HELP PEOPLE UNDERSTAND A LOT MORE AND WE'LL GET MUCH LESS PUSHBACK FROM PEOPLE WHEN WE DO CHOOSE A LOCATION FOR SOME OF THESE . COUNCIL I WAS JUST GOING TO ADD THAT, AS YOU KNOW, WE RECENTLY ADOPTED OUR HOUSING POLICY, COUNCIL JUST ADOPTED AN IMPLEMENTATION CONTRACT FOR US TO START WORKING ON THAT. THE NEXT STEP IS TO IDENTIFY THOSE TARGET AREAS.
AS WE KNOW, THOSE WHAT THOSE TARGET AREAS ARE, WE'LL BE COMING TO YOU WITH RECOMMENDATIONS FOR THE KINDS OF ACTIVITIES THAT WE SHOULD BE LOOKING TO DEPLOY IN THOSE TARGET AREAS. SO UP UNTIL NOW, YOU'VE SEEN US DEPLOY OUR HOUSING FINANCE CORPORATION, OUR PUBLIC FACILITIES CORPORATION, MORE ON A PRODUCTION BASIS. DO THE NUMBERS MAKE SENSE? CAN WE JUSTIFY THE LOCATION THAT THE PARTICULAR MAKEUP OF AFFORDABILITY IS PROPOSED.
COUNCIL MEMBER RIDLEY. THANK YOU, MR. CHAIR. ON SLIDE SIX, YOU SPEAK OF THE 4% LIHTC PROJECTS, BUT THERE'S NO MENTION OF THE 9% COMPETITIVE PROJECTS. I'M JUST CURIOUS WHY THAT WASN'T MENTIONED IN THE PRESENTATION.
YEAH, WE WERE JUST TRYING TO GIVE AN OVERVIEW OF WHAT'S POSSIBLE.
YOU KNOW, THE 9% ALSO IS A BIG PART OF OUR PROGRAM.
[00:25:03]
IT'S OPERATED A LITTLE DIFFERENTLY.BUT SAME END GOAL, RIGHT? THEY'RE ABLE TO PROVIDE NEW AFFORDABLE HOUSING AND NEW CONSTRUCTION THROUGH THOSE 9% TAX CREDITS.
CAN YOU GIVE A ROUGH APPROXIMATION OF THE PROPORTION OF THE HFC DEALS THAT ARE 9% VERSUS 4%? SO THE 9% DEALS, IT'S THEY'RE COMPETITIVE AND THERE'S A CERTAIN AMOUNT THAT CAN BE DONE EVERY YEAR BASED ON WHAT THEY CALL THE QAP.
AND SO EVERYONE IN THE STATE GOES THROUGH AND THEY LOOK AT THESE REQUIREMENTS AND THEY SAY, ALL RIGHT, WHAT GEOGRAPHIC AREA IN THE CITY CAN MATCH THESE REQUIREMENTS BEST SO THAT I CAN SCORE HIGHER THAN EVERYONE ELSE COMPETING FOR THESE DOLLARS.
AND SO IT'S HARD TO SAY, YOU KNOW, WHAT PERCENTAGE IS DONE EVERY YEAR.
YEAH, WE'RE DOING A LOT MORE 4% BECAUSE THERE'S JUST MORE MONEY AVAILABLE FOR THAT PROGRAM.
THE 9% AS WELL, YOU KNOW, IT'S JUST HARDER TO QUALIFY.
BUT AGAIN, THEY'RE STILL VERY VALUABLE.
OKAY. ON SLIDE 17, YOU SPEAK ABOUT THE TDHC ALLOTTING BOND FUNDS TO THE HFC FOR LOW COST MORTGAGES, HOW MUCH MONEY IS AVAILABLE THROUGH THE TDHCA? AND THEN THAT'S, I TAKE IT, IN ADDITION TO THE DHFC BONDS THAT ARE TOTALING $22 MILLION.
SO TDHCA IS ACTUALLY THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS AND SO THEY'RE THE ONES WHO I GUESS THEY'RE KIND OF THE CARETAKERS OF ALL THE FEDERAL MONEY THAT COMES OUT THROUGH THE TAX CREDIT PROGRAM AND THROUGH ALL THESE CERTAIN GRANTS.
AND SO THE HFC, THE DHFC IS AN ISSUER AUTHORIZED THROUGH THE STATE.
AND SO TDHCA IS ALLOCATED A CERTAIN AMOUNT OF FUNDS FOR THESE LOW COST MORTGAGES.
AND SO WE AS THE CITY OF DALLAS, ARE ALLOCATED A CERTAIN AMOUNT FROM THEIR UH, I GUESS POT OF MONEY.
AND SO WE CAN GO AND APPLY FOR THAT ALLOCATION AND THAT'S WHAT WE'LL DO EVERY YEAR.
SO I THINK THIS LAST YEAR WAS I THINK $50 MILLION WERE AVAILABLE TO, TO ISSUE TO US.
I'D HAVE TO GO AND CONFIRM THAT WITH OUR ADVISORS THERE.
WE HAVE PEOPLE WHO ARE REALLY PLUGGED IN TO ALL THE ALL THE BOND REQUIREMENTS AND STUFF, BUT WE CAN GET BACK TO YOU ON EXACTLY HOW MUCH IS AVAILABLE EVERY YEAR AND WE CAN GET THAT BACK TO YOU. SO TDHCA IS ALLOCATED YOUR BEST GUESS $50 MILLION TO DALLAS FOR THIS PROGRAM.
ARE WE ABLE TO UTILIZE ALL OF THAT FUNDING? REALLY, IT JUST DEPENDS ON WHO APPLIES THROUGH THE THROUGH THE LENDERS.
WE'VE UTILIZED $22 MILLION SO FAR IN A VERY SHORT TIME.
AND I ASSUME THAT UNDER THE STATE PROGRAM AS WELL AS THE DHFC, THERE ARE ELIGIBILITY REQUIREMENTS IN TERMS OF INCOME AND ALSO DOWN PAYMENTS.
RIGHT. AND WE RECENTLY APPROVED $1 MILLION FOR THE DOWN PAYMENT ASSISTANCE PROGRAM.
CAN APPLICANTS UTILIZE BOTH TYPES OF FINANCING TO GET INTO A NEW HOME, OR IS ONE EXCLUSIVE OF THE OTHER? I'M NOT [INAUDIBLE]. YEAH, WE'D HAVE TO CONFIRM.
YEAH. SO IT'LL REALLY COME DOWN TO NEED.
BUT AS WE'RE UNDERWRITING EACH HOME BUYER, WE'LL LOOK AT THEIR OVERALL NEED.
WE WON'T GIVE THEM MORE THAN THAN THEY NEED.
SO RECEIVING ONE DOES NOT DISQUALIFY YOU FROM THE OTHER.
BUT AT THE END OF THE DAY, YOU HAVE TO IT'S REALLY BASED ON WHAT YOU NEED TO AFFORD THE HOME.
OKAY. THANK YOU, MR. CHAIR. THANK YOU VERY MUCH.
ANYONE ELSE ON THE COMMITTEE HERE? I SEE COUNCIL MEMBER BLACKMON ONLINE.
COUNCIL MEMBER BLACKMON. THANK YOU.
GOOD MORNING. AND THANK YOU FOR THIS REALLY GOOD BRIEFING.
[00:30:04]
TO GO DEEPER INTO THAT CONVERSATION, AND IF WE'RE TALKING ABOUT GENERATIONAL WEALTH AND GIVING, YOU KNOW, INDIVIDUALS THE OPPORTUNITY TO, YOU KNOW, BELIEVE IN THE YOU KNOW, OWNING A HOME IS KIND OF THE AMERICAN WAY.WHAT ELSE DO YOU NEED TO BE SUCCESSFUL IN THIS SPACE? YOU RATTLED OFF A FEW THINGS THAT REALLY GET DOWN TO IS IT RESOURCES? IS IT LAND? IS IT. WHAT IS IT? GOOD. GOOD QUESTION.
COUNCILWOMAN IT'S REALLY A VARIETY OF FACTORS ON THE FINANCIAL STANDPOINT.
THE TYPICAL HOME BUYER THAT WE'RE SERVING EARNS ANYWHERE BETWEEN ABOUT $50 AND $80,000 FOR A FAMILY.
WHAT THAT CAN AFFORD IS ROUGHLY A $200,000 TO MAYBE A $250-$260,000 HOME.
THE REALITY IS THAT THE AVERAGE HOME IN DALLAS SELLS FOR $375.
SO WHEN FROM A FINANCIAL STANDPOINT, WE'VE GOT TO FIGURE OUT THE MATH, HOW DO YOU GET A $375,000 HOME TO SELL FOR $250 OR LESS? AND MANY TIMES IT DOES NOT WORK.
ASIDE FROM THE FINANCIAL STANDPOINT, WE RUN INTO OTHER ISSUES WITH FLOODPLAIN MITIGATION.
RIGHT? CAN YOU BUILD HOMES IN THIS AREA? MANY TIMES WE HAVE TO COME IN AND MITIGATE THE FLOODPLAIN CHALLENGES WHICH REQUIRE ADDITIONAL INVESTMENTS THAT WE HAD NOT EXPECTED OR PREPARED FOR.
AND THEN YOU HAVE ZONING CHALLENGES IN A LOT OF THE GREEN SPACE THAT WE'RE LOOKING TO DEVELOP SINGLE FAMILY FOR SALE HOUSING NEEDS TO BE REZONED. AND AS I'VE SEEN AT OUR CITY PLANNING COMMISSION, WE HAVE VERY LIVELY DEBATES ON WHAT IS APPROPRIATE FOR THE AREA.
SO WHEN YOU'RE ASKING ME, WHAT DO WE NEED? IT REALLY COMES DOWN TO LOCATION AND MATH TO FIGURE OUT WHAT'S NEEDED IN A GIVEN AREA. AND SO WITH THAT, DAVID, I MEAN, MY SON JUST BOUGHT OUR STARTER CONDO, RIGHT? AND SO IT'S JUST HIM.
HAVE WE THOUGHT ABOUT LOOKING AT GENERATIONS AND GIVING THEM THEIR WHAT THEY WANT? LIKE SOME PEOPLE DON'T WANT A YARD, ESPECIALLY WHEN THEY'RE JUST STARTING OUT.
BUT YOU ARE BUILDING GENERATIONAL WEALTH WITH THAT FIRST PURCHASE AND IT WOULD BE IN THAT $200 TO $250,000 SPACE. IS THAT CAN WE LOOK AT THAT AT LOOK AT AND VERTICAL IN SOME AREAS THAT MAKE IT [INAUDIBLE]? ABSOLUTELY. IT'S IT'S IT'S ONE OF THE FACTORS THAT THAT WE'VE BEEN ONE OF THE CONVERSATIONS THAT WE'VE BEEN HAVING WITH PLANNING AND URBAN DESIGN, PARTICULARLY AROUND FORWARD DALLAS.
WHERE IS IT APPROPRIATE TO HAVE CONDOS, WHERE IS IT APPROPRIATE TO HAVE TOWNHOMES IN HIGHER DENSITY? AND WHERE DO WE SEE US CONTINUING TO HAVE LARGE LOT SIZES OR IN SOME CASES MASTER COMMUNITIES WHERE YOU CAN HAVE A COMBINATION OF ALL OF THESE AS YOU AS WE SAW WITH THE MASTER PLAN FOR HENSLEY FIELD.
I'M GLAD BECAUSE I THINK YOU'RE GOING TO SEE A LOT MORE INDIVIDUALS WHO ARE NOT WANTING A BIG SPACE.
THEY WANT A SMALLER SPACE AND THEY'RE OKAY WITH THAT, ESPECIALLY ON THEIR FIRST STARTER.
AND I WOULD THINK THAT THE MATH, IT WOULD BE EASIER TO INVEST $200,000 IN A HOME ONE TIME THAN GOING, YOU KNOW, $200,000 EVERY YEAR FOR 50 YEARS.
AND BUT I DON'T KNOW. I'M NOT A I'M NOT A FINANCIER, BUT I WOULD JUST FIGURED A ONE TIME HIT TO CREATE THIS OPPORTUNITY IS WAY EASIER THAN CREATING SOMETHING THAT YOU BASICALLY HAVE TO PAY FOR, YOU KNOW, 50 TO 75 YEARS.
BUT WHAT WE CAN DO IS USE THE REVENUES THAT WE'VE GENERATED TO INVEST IN FOR SALE HOUSING.
AND THAT'S WHAT YOU SEE US DOING THROUGH THE HFC.
[00:35:05]
TDHCA SINGLE FAMILY INITIATIVE.OKAY. I WOULD ADD TOO, YOU KNOW, THE AFFORDABILITY PROVIDED THROUGH THE PROGRAMS ALSO ALLOWS THESE PEOPLE WHO ARE, YOU KNOW, SAVING UP FOR THEIR FIRST DOWN PAYMENT TO REALLY GET INTO THAT FIRST ONE EVEN YOU KNOW, A COUPLE OF HUNDRED DOLLARS A MONTH.
CORRECT. AND I JUST THINK THAT'S A GOOD STRATEGY THAT WE SHOULD FOCUS MORE ON.
REAL QUICK, THE LAST ONE WE'VE TALKED ABOUT.
YOU KNOW, I GUESS MY QUESTION IS WHAT IS COMPLETE SATURATION OF THESE TYPES OF INVESTMENT OR THESE TYPES OF HOUSING? LIKE WHEN DO WE KNOW WE'VE REACHED THE TIPPING POINT AND WE DON'T NEED TO GO ANY FURTHER.
LIKE, WHEN DO WE KNOW THAT WE NEED TO PULL BACK AND JUST AND JUST IMPLEMENT WHAT WE HAVE VERSUS TRY TO KEEP BUILDING MORE PFC OR HFCS? GOOD QUESTION. AND THAT'S NOT SOMETHING WE REALLY LOOK AT IN ISOLATION.
WE REALLY LOOK AT IT FROM THE BASIS OF UNIT NEEDS ACROSS THE CITY.
AND THERE'S DIFFERENT STUDIES THAT HAVE COME OUT.
I HATE TO GIVE YOU A NUMBER BECAUSE I DON'T HAVE I HAVE A NUMBER OF NUMBERS IN MY HEAD, BUT DEPENDING ON HOW YOU LOOK AT THE CITY'S NEED FOR HOUSING AND WHAT LEVEL OF INCOME GROUP THAT YOU'RE TRYING TO SERVE, THE NEEDS WILL VARY.
WHAT WE ARE TRYING TO DO THROUGH OUR NEW HOUSING POLICY IS SET ANNUAL GOALS AND TEN YEAR GOALS.
SO YOU'LL SEE US BRINGING THOSE ANNUAL AND TEN YEAR GOALS, WHAT WE CALL SMARTIE GOALS FOR THE HFC, FOR THE PFC, FOR OUR LAND BANK, FOR EACH OF THE PROGRAMS THAT WE OPERATE THROUGH, THE HOUSING DEPARTMENT.
SO THAT'S PART OF OUR IMPLEMENTATION PLAN.
GREAT. SO YOU ALL ARE TRACKING THOSE? YES. OKAY.
THANK YOU. THANK YOU VERY MUCH.
SOME EXCELLENT QUESTIONS, AS YOU USUALLY ASK.
ANYONE ELSE? GOING ONCE. TWICE.
THANK YOU, DAVID. THANK YOU, TEAM.
THIS WAS VERY, VERY IMPORTANT INFORMATION AND I COMMEND YOU ON THE PRESENTATION AND YOUR ABILITY TO DO A SUMMARY OF ALL OF THESE THINGS IN THESE SLIDES. NEXT PRESENTATION.
ALL RIGHT I SEE ACM TOLBERT IS HERE.
DO YOU HAVE ANYTHING THAT YOU WANT TO OPEN WITH OR YOU WANT TO JUST GO WITH THE DIRECTOR? OKAY. ALL RIGHT.
SO JUST A BRIEF OVERVIEW OF THE PRESENTATION.
WE'LL BE GOING OVER JUST A RECAP OF THE NEED FOR HOUSING OUR UNSHELTERED RESIDENTS, WHICH A LOT OF YOU HAVE PROBABLY RECENTLY SEEN IN THE STATE OF HOMELESSNESS ADDRESS THE STATUS OF OUR 2017 BOND PROGRAM PROPOSITION J PROPOSED 2024 BOND PROGRAM AND NEXT STEPS.
UH, YOU GUYS APPEAR TO BE MISSING ONE.
OKAY, WELL, JUST STAY THERE AND I WILL JUST RECAP FOR YOU.
AS I SAID, THE STATE OF HOMELESSNESS ADDRESS RECENTLY TALKED ABOUT THAT ON OUR JANUARY 26TH, 2023, WHICH WAS THE POINT IN TIME COUNT THAT DOES OUR YEARLY HOMELESS ADDRESS OR EXCUSE ME, OUR YEARLY HOMELESS COUNT.
THIS YEAR WE HAD ABOUT 4,200 INDIVIDUALS ACROSS DALLAS AND COLLIN COUNTY EXPERIENCING HOMELESSNESS.
THAT REFLECTS A 14% DECREASE IN UNSHELTERED HOMELESSNESS BETWEEN 2022 AND 2023.
AND MORE IMPORTANTLY, WITHIN THAT 14%, A 32% DECLINE IN CHRONIC HOMELESSNESS, WHICH IS A DIRECT REFLECTION OF THE WORK BEING DONE THROUGH THE DALLAS REAL TIME INITIATIVE TO HOUSE PEOPLE DIRECTLY FROM ENCAMPMENTS AND FROM SHELTERS.
THROUGH THE RTR WE'VE HOUSED OVER 1,900 ACTUALLY IT'S OVER 2,000 PEOPLE TO DATE, AND IT'S ON TRACK TO HOUSE 2,700 INDIVIDUALS BY THE END OF 2023. AND IN JUNE, WE'LL BE HERE TO TALK ABOUT ACTUALLY AN EXPANSION OF THAT CALLED THE REAL TIME REHOUSING THAT'S GOING TO HOUSE 6,000 BY 2025.
[00:40:04]
IT'S VERY EFFECTIVE.AND A LOT OF THAT IS IN CONTINGENCY FUNDS FOR CURRENT PROJECTS.
SO YOU CAN SEE THAT WE HAVE SPENT ALL OF THE FUNDING ON THESE PROJECTS, THE CREATION OF THESE PROJECTS, ACQUISITION OF BUILDINGS FOR SOME CONTRIBUTE CONTRIBUTION TO RENOVATION COSTS FOR OTHER HAS CREATED 680 NEW BEDS, 400 OF WHICH ARE CURRENTLY ACTIVE AND FOUR OF THE FIVE PROPERTIES ARE OWNED BY THE CITY.
SO IF WE GO TO WHAT'S PROPOSED.
OKAY. I'M NOT SURE WHY THESE SLIDES ARE OUT OF ORDER.
CAN WE JUST. OKAY, LET'S GO BACK TO THE OTHER ONE AND.
THE RECOMMENDATION WAS GUIDED, OF COURSE, BY OUR TRACK FOUR, WHICH IS INVESTMENT IN FACILITIES, COMBATING HOMELESSNESS, AND ALSO BY OUR RACIAL EQUITY MEASURE THAT IS APPLIED TO EVERYTHING THAT WE DO.
AND ACCORDING TO THE 2023 HOMELESSNESS POINT IN TIME COUNT, 59.5% OF OUR HOMELESS POPULATION IDENTIFIED AS BLACK OR AFRICAN-AMERICAN, WHICH MEANS THAT WE KNOW WE STILL HAVE AN OUTSIZED PROPORTION OF THE CITY OF DALLAS POPULATION TO MAKE SURE THAT WE ARE PUTTING INTO HOUSING AND ALSO LIFTING OUT OF POVERTY IN A WAY THAT IS SUSTAINABLE.
OKAY. SO IF WE CAN GO TO THE NEXT SLIDE.
THANK YOU. SO THE FIRST THING THAT WE ARE DOING IN TERMS OF THINGS THAT WE'VE CONSULTED WITH BUILDING SERVICES ON IS WORKING TO RENOVATE THE BRIDGE, WHICH HAS NOT BEEN RENOVATED IN I THINK IT'S 14 YEARS SINCE WE GOT IT.
SO THERE ARE SOME SIGNIFICANT THINGS THAT NEED TO HAPPEN, SOME OF WHICH THEY HAVE TAKEN ON.
RIGHT NOW THEY ARE SHELTERING OVER 340 GUESTS IN A SPACE THAT WAS DESIGNED TO SERVE 220.
AND WE KNOW THAT THEY RECEIVE AROUND 700 INDIVIDUALS EVERY DAY AND THAT WE HAVE OVER AROUND HALF OF THAT WHO HAVE TO LEAVE EVERY SINGLE NIGHT TO FIND ALTERNATIVE SPACE. SO IN ORDER TO HELP WITH THAT, WE CAN GO TO THE NEXT SLIDE.
THANK YOU. ONE OF THE WE ARE REPLACING A LOT OF THE BASIC THINGS.
ALL OF THESE THINGS NEED UPGRADES TO MAKE SURE THAT WE ARE RESPONSIBLY EXTENDING THE LIFESPAN OF THESE BUILDINGS, THAT THEY CAN CONTINUE SERVING NOT ONLY THE PEOPLE THAT THEY SERVE, BUT MORE PEOPLE AS THE FOOTPRINT INCREASES.
FOR PSH FUTURE PROJECTS, THIS ONE DOESN'T HAVE AS MUCH DETAIL.
WHAT WE'RE LOOKING AT HERE IS THAT WE KNOW THAT AS WE MOVE FORWARD, WE HAVE PROJECTS THAT WE ARE TYING UP AND MOVING FORWARD WILL WANT TO BE ABLE TO PARTNER WITH OTHER WITH OTHER COMMUNITY MEMBERS AND WITH THE COC AND LARGER PROJECTS THAT NEED NOT NECESSARILY FOR US TO BUY ANOTHER BUILDING, BUT TO LEVERAGE FUNDING.
THE WAY THAT WE GOT TO THAT AMOUNT IS THAT ONE OF OUR PROJECTS, 4150 INDEPENDENCE DRIVE, COST ROUGHLY THAT MUCH WHEN WE'RE LOOKING AT RENOVATION ACQUISITION, THINGS THAT ARE MOVING FORWARD.
AND THEN CONTINUING THAT NEEDS INVENTORY.
IT WILL ALSO ADD TEN STAFF OFFICES.
SO WHAT THAT'S GOING TO LOOK LIKE IS THERE'LL BE, YOU KNOW, FANS AND HEATERS INSIDE AND JUST MORE SPACE FOR PEOPLE TO STAY, ESPECIALLY DURING SUPER HOT WEATHER, BUT ALL YEAR LONG AS WELL.
AND THEN OUR LAST PROJECT THAT WE'RE LOOKING AT IS THE DEVELOPMENT OF A 12 ACRE CAMPUS.
SO THIS PROJECT INCLUDES THE RENOVATION OF FOUR BUILDINGS.
WE KNOW THAT AT LEAST ONE WILL PROVIDE PERMANENT SUPPORTIVE HOUSING.
THE OTHER BUILDINGS, THOUGH, CAN BE USED FOR THAT.
[00:45:03]
AND WE KNOW THAT WHILE $17 MILLION IS PROBABLY NOT ENOUGH TO DO AN ENTIRE 12 ACRE CAMPUS, IT IS GREAT SEED FUNDING TO LEVERAGE INVESTMENT FROM THE PRIVATE MARKET FOR POTENTIAL NEW BUILD.AND SO THAT TAKES OUR TOTAL TO IF I'M ROUNDING UP $35 MILLION.
THEN WE WILL ALSO DO THE PRESENTATION TO THE SUBCOMMITTEE FOR THE BOND TASK FORCE ON JUNE 20TH.
WE'RE GOING TO BE TAKING THE SUBCOMMITTEE TOUR MEMBERS AND ANY INTERESTED MEMBERS OF THE MAIN TASK FORCE ON A TOUR ON JUNE 24TH OF PROJECTS FUNDED WITH THE 2017 BOND FUNDS AND THOSE PROPOSED FOR 2024 BOND FUNDS.
AND WITH THAT, WE ARE OPEN FOR QUESTIONS.
THANK YOU VERY MUCH FOR THAT EFFICIENT PRESENTATION.
WE'RE GOING TO START WITH COUNCILMAN RIDLEY.
THANK YOU FOR YOUR PRESENTATION CHRISTINE.
ON SLIDE EIGHT, YOU HAVE A FIGURE OF $12.6 MILLION FOR FUTURE PSH PROJECTS WITH NO EXPLANATION.
WHAT IS THAT? THANK YOU FOR THAT QUESTION, COUNCIL MEMBER.
SO AS I SAID ON THIS ONE, IT HAS LESS EXPLANATION BECAUSE THIS IS THE NUMBER THAT WE KNOW FROM THE 4150 INDEPENDENCE DRIVE PROJECT THAT WE HAVE RENOVATION PLUS ACQUISITION. AND THEN IF YOU'RE ADDING IN AN 18% DESIGN FEE COST ROUGHLY THAT MUCH.
SO HOW MANY UNITS WOULD THAT PROVIDE FOR $12.6 MILLION? WELL, THE CURRENT 4150 INDEPENDENCE DRIVE IS GOING TO PROVIDE 132 UNITS AND A FULL SERVICES BUILDING AS WELL.
WELL, I'M A REAL ADVOCATE FOR THE VOUCHER PROGRAM AND THE CITY'S SUBLEASE PROGRAM TO LEVERAGE PRIVATE SECTOR INVESTMENT IN EXISTING HOUSING THAT CAN BE USED FOR VOUCHER HOLDERS.
IT JUST SEEMS LIKE THAT IS A MUCH MORE EFFICIENT WAY TO PROVIDE PERMANENT SUPPORTIVE HOUSING THAN BUILDING A NEW BUILDING FROM SCRATCH, ACQUIRING THE LAND, THE PERMITS, THE DESIGN, AND THEN THE CONSTRUCTION PROCESS, WHICH TAKES UP TO FOUR YEARS, WHEREAS THE VOUCHER PROGRAM IS IMMEDIATE. WHY SHOULD WE BE INVESTING SO MUCH MONEY INTO NEW CONSTRUCTION INSTEAD OF IN OUR VOUCHER PROGRAM? YOU ARE ABSOLUTELY CORRECT, AND THAT IS WHAT WE WOULD LIKE TO DO WITH THIS FUNDING.
WE WOULD LIKE TO TAKE IT AND INVEST IT AS SEED FUNDING OR LEVERAGE FOR PROJECTS THAT YOU DESCRIBED, BECAUSE WE REALIZE THAT MOVING FORWARD, I OFTEN SAY, YOU KNOW, IN TERMS OF WORKING SMARTER, NOT HARDER.
I THINK NOW MOVING FORWARD, IT MAKES SENSE TO PARTNER IN THE WAY THAT YOU'VE MENTIONED.
AND SO WE WE HOPE TO USE THE MONEY IN THAT FASHION, BUT WE HAD TO COME UP WITH A NUMBER.
SO THE NUMBERS THAT YOU GAVE US FOR THE 2017 BOND PROGRAM INDICATED THAT YOU SPENT ABOUT $30,000 PER BED, 680 DIVIDED INTO $20 MILLION.
IS THAT A FIGURE THAT IS COMMON IN THE INDUSTRY? HOW IS THAT BENCHMARKED AGAINST WHAT OTHER CITIES DO? NOT BEING IN THE INDUSTRY, I'M NOT EXACTLY SURE, BUT I BELIEVE THAT'S FAIRLY LOW.
I'M JUST RECALLING OFF THE TOP OF MY HEAD WHEN WE DID THE COMPARISON OF TINY HOMES TO A ADAPTIVE REUSE, WE WERE LOOKING AT SOMETHING LIKE THAT AS OPPOSED TO WHEN YOU'RE BUILDING FROM THE GROUND UP.
IT WAS ALMOST $50,000, WHICH WAS FAIRLY HIGH.
I DON'T HAVE THE INDUSTRY EXPERTISE TO TELL YOU MORE THAN THAT.
I WILL SAY THAT IF YOU'RE LOOKING AT THIS, I WOULD TAKE OUT THE $156,000 FOR PROPERTY ASSESSMENTS.
AND ON SAINT JUDE PARK CENTRAL, WE CONTRIBUTED THAT TO THE RENOVATION COST.
AND SO WHEN I, YOU KNOW, GOING BACK TO THAT $12.9 MILLION THAT WE TALKED ABOUT FOR LARGER PROJECTS, BEING ABLE TO PARSE THAT OUT AND JUST CONTRIBUTE HERE AND THERE MEANS THAT INSTEAD OF $12.6 MILLION FOR 132, WE CAN CONTRIBUTE $3 MILLION FOR 200 BEDS.
AND SO THE IMPACT WILL BE MUCH MORE WIDELY FELT MOVING FORWARD.
[00:50:02]
THAT IS OUR HOPE. AND FINALLY, ON THE NEXT PAGE NINE, YOU WERE REQUESTING $17.7 MILLION FOR DEVELOPMENT OF THE SOUTH HAMPTON ROAD PROPERTY THAT WE ACQUIRED LAST YEAR.AND I'M CURIOUS, WILL THAT BE THE TOTAL BUDGET ANTICIPATED FOR THE RENOVATION OF THE FOUR BUILDINGS, OR WILL THAT JUST BE A PART OF THE COST THAT WE'LL HAVE TO SEEK ADDITIONAL FUNDS FROM SOME OTHER SOURCE? AND AS I SAID, I DON'T BELIEVE THAT $17 MILLION IS ENOUGH FOR A 12 ACRE CAMPUS, BUT I BELIEVE IT IS ENOUGH TO SHOW THAT THE CITY IS COMMITTED TO PARTNERING WITH PUBLIC AND PRIVATE ENTITIES TO LEVERAGE THIS FUNDING INTO DEVELOPING THE CAMPUS HOLISTICALLY OVER SEVERAL YEARS.
SO HOW DID YOU ARRIVE AT THAT SOMEWHAT ARBITRARY SOUNDING NUMBER OF $17.7 MILLION? WELL, WE ASKED FOR $15 MILLION, AND THEN THERE'S AN 18% DESIGN FEE.
AND I THINK IT WAS JUST, YOU KNOW, WE KNOW THAT THE CAMPUS IS GOING TO COST MORE THAN THAT.
OKAY. THANK YOU, MR. CHAIR. THANK YOU VERY MUCH FOR THOSE THOUGHTFUL QUESTIONS, MR. VICE CHAIR. THANK YOU, MR. CHAIR. I THANK YOU ALL FOR THAT PRESENTATION.
I'M JUST GOING TO BE GO AHEAD AND SAY IT.
YET I'M SEEING HERE THAT WE'RE GOING TO BE EXPANDING CAPACITY FOR OUR DOWNTOWN SHELTER.
AND SO I THINK IT'S A TIME THAT WE START LOOKING AT POTENTIALLY BUILDING A SECOND EMERGENCY SHELTER IN ANOTHER PART OF THE CITY SO WE CAN SPREAD THOSE RESOURCES THROUGHOUT.
THANK YOU. THANK YOU, COUNCIL MEMBER.
WE ARE STILL DEDICATED TO THAT.
YOU FIRST MIC DROP MOMENT, HUH? ALL RIGHT. ANYONE ELSE? ALL RIGHT. JUST MY THOUGHTS ON IT.
OH, SORRY. OKAY, I'LL COME BACK.
GO AHEAD. COUNCILMAN BLACKMON.
DO YOU WANT TO FINISH AND THEN COME BACK OR DO YOU WANT TO? NO, NO, NO. I'LL CLOSE OUT.
OKAY. SO THANKS FOR THIS PRESENTATION.
I GUESS MY QUESTION ON SOME OF THIS IS IF WE EXPAND THE CAPACITY AND WE ADD MORE PSH BEDS AND DO SOME RENOVATIONS, IS THAT GOING TO GET US TO A POINT WHERE WE ARE SEEING MOVEMENT ON THE HOMELESS SITUATION? IT'S NOT BECAUSE I'M NOT SAYING THAT YOU'RE NOT DOING ANYTHING, IT'S JUST THAT WE DO SEE MORE POPULATION.
IT FEELS AND IF WE DO ALL THESE THINGS, IS THAT GOING TO AT LEAST GET PEOPLE OFF THE STREETS, GET THEM IN THE PIPELINE AND GET THEM THE SERVICES THAT THEY NEED? I WILL SAY YES, BECAUSE, YOU KNOW, RIGHT NOW WE HAVE THROUGH THE THROUGH THE REAL TIME REHOUSING, AS WE'RE CALLING IT NOW.
WE HAVE ACTUALLY ENROLLED OVER 2,700 PEOPLE.
I THINK WE'RE ALMOST TO 3,000, WHICH WE WOULD HAVE HAD TO STOP AT BEFORE.
WE WOULD HAVE HAD TO STOP AT 2,700 AND SAY WE'RE DONE.
AND ONCE THEY'VE BEEN ENROLLED, THEY'RE WAITING ON HOUSING.
RIGHT NOW, WE'RE HITTING AN ALL TIME HIGH.
YOU KNOW, THROUGH THE NAVIGATION TEAM OVER AT HOUSING FORD, WE ARE HOUSING AROUND 14 PEOPLE A WEEK.
IT USED TO BE AN AVERAGE OF SIX.
AND ALL OF THAT IS THANKS TO SEAMLESS EFFORTS THAT ALSO INCLUDE LANDLORDS.
AND SO WE NEED TO KEEP PUTTING UNITS, KIND OF BUILDING THE TRAIN TRACK AS WE GO.
AND THAT TRAIN TRACK IS UNITS.
AND PART OF THAT IS THE PSH, YOU KNOW, DALLAS HOUSING AUTHORITY.
WE NEED SOME PLACE TO PUT THE VOUCHERS.
[00:55:02]
IN A SMARTER WAY AND REALLY WIDENING THE IMPACT OF THIS FUNDING AS WE GO AND OTHER PEOPLE BRING PROJECTS TO THE TABLE.I WILL ALSO SAY WE ARE NOT THE ONLY ONES BRINGING PROJECTS TO THE TABLE.
AND THEN AS WE LOOK FORWARD, SEE HOW THAT INVESTMENT IS GOING TO EVOLVE.
WITH THE I WANT TO CALL IT A RENOVATION CONVERSION.
YOU'RE NOT ACTUALLY EXPANDING THE FOOTPRINT, BUT YOU'RE ACTUALLY CREATING MORE SPACE WITHIN THE FOOTPRINT IN ORDER TO BRING THE INDIVIDUALS THAT ARE OUTSIDE THE PERIMETER INSIDE.
IS THAT CORRECT? THAT'S CORRECT, YES.
OKAY. WE PROBABLY NEED TO EXPLAIN THAT A LITTLE BETTER BECAUSE I DO I DRIVE BY THERE FREQUENTLY.
AND I KNOW I'VE WORKED WITH DR.
WOODY AND HIS TEAM AND UNDERSTANDING THEY [INAUDIBLE] THEY DO WITH THAT AREA, THAT COURTYARD AREA.
BUT YOU'RE RIGHT, IT IS NEEDING LOVE AND CARE.
AND THE INTENT IS TO TAKE PEOPLE OFF THE STREET AND WE ARE GOING TO HAVE TO CHANGE SOME SPACE WITHIN THAT FOOTPRINT TO HELP WITH THAT, TO HELP WITH THAT STRATEGY.
COUNCIL MEMBER BLACKMON SINCE YOU'RE MOST FAMILIAR WITH THE BRIDGE SINCE YOU WERE HERE WHEN IT WAS CONSTRUCTED, JUST TO FURTHER ELABORATE ON CHRISTINE'S PRESENTATION ABOUT THAT RENOVATION, THEY ARE NOT EXPANDING THE FOOTPRINT.
IT WILL REMAIN THE SAME. I KNOW THAT WAS ONE OF COUNCILMAN MORENO CONCERNS.
THE COURTYARD THAT IS OPEN NOW WILL BE COMPLETELY COVERED.
SO THAT THE ENTIRE CAMPUS WILL BE COMPLETELY COVERED.
THERE WILL BE NO OUTDOOR AREAS AND BY COVERING THE COURTYARD IS WHERE THEY'LL BE ABLE TO ADD THOSE OFFICES AND SPACE FOR ADDITIONAL BEDS TO BRING THE INDIVIDUALS IN 300 THEY TURN OVER, THEY TURN AWAY APPROXIMATELY 340 GUESTS A NIGHT.
THEY'LL BE ABLE TO BRING IN AT LEAST 100, POSSIBLY MORE.
WOODY IS WORKING ON. SO IT'LL BE FULLY ENCLOSED AND NO OPEN AREAS.
WELL, IT'S SAD THAT WE HAVE TO THAT WE HAVE TO EXPAND IT.
RIGHT. AND IT WAS KIND OF A VISION OF THAT WHOLE TASK FORCE THAT LED TOM DUNNING AND MIKE RAWLINGS.
AND THIS WAS A NEEDED PART OF THAT.
AND FROM MY RECOLLECTION, IT WAS BUILT BEFORE EVERYTHING ELSE WAS BUILT AROUND IT.
I THINK SO AND I DO THINK THAT WE HAVE TO WORK WITH OUR PARTNERS ON THAT AND OUR STAKEHOLDERS.
BUT I THINK WE AND I KNOW I'VE BEEN WORKING WITH YOU GUYS ON WE NEEDED PROJECT IN D9, AND SO I'VE BEEN I'M WILLING AND READY TO TO AND WE'VE BEEN TALKING A LOT.
BUT YES, WE NEED TO SPREAD IT ACROSS THE CITY AND WE DO HAVE GREAT PARTNERS.
MY FINAL QUESTION IS WITH THIS MONEY, ARE WE ABLE TO LEVERAGE YOU DID TALK ABOUT PRIVATE DOLLARS ON THE RENOVATION OF HAMPTON, BUT ARE WE ABLE TO LEVERAGE ANY OTHER DOLLARS, EITHER FEDERAL OR PRIVATE, FOR PHSS AND ANY OF THE BRIDGE AND THE OTHER EXPANSION PROJECTS? SO THE BRIDGE EXPANSION PROJECT HAS ALREADY RAISED $250,000 OF THEIR OWN TO DO THE OUTDOOR RESTROOMS. WE'RE IN TALKS ABOUT MATCHES FOR OTHER PROJECTS AND THE SAME GOES FOR THE OTHER PROJECTS WE'RE IN.
TALKS ABOUT MATCHES FOR WHAT IT WOULD LOOK LIKE FOR THE, AS I MENTIONED, THE 12 ACRE SITE AND I SHOULD SAY NOT IN TALKS YET, BUT THAT IS A THOUGHT AS WE MOVE FORWARD AND DEVELOP THIS WITH THE COMMUNITY AND BRING A MASTER PLANNER ON BOARD TO LISTEN TO WHAT THE COMMUNITY WANTS AND REALLY THINK ABOUT HOW WE CAN UTILIZE WHAT SEED FUNDING WE PUT FORWARD TO REALLY BRING ABOUT A LARGER RESULT.
OKAY. BECAUSE YEAH, IF WE COULD LEVERAGE MORE FEDERAL DOLLARS OR LOCAL DOLLARS OR COUNTY DOLLARS OR PRIVATE DOLLARS, I WOULD LOVE TO FIGURE OUT THAT AND WILLING TO HELP IN ANY CAPACITY.
THAT'S IT, MR. CHAIR. THANK YOU.
THAT WAS, I BELIEVE, PART OF A AGREEMENT THAT COUNCIL OKAYED THE TERM SHEET ON LAST SUMMER.
[01:00:09]
SAID THAT NOT ONLY DO WE GET THE $22.8 MILLION, BUT IT'S BECOMING A NORMAL PART OF OUR BUDGET.I THINK IT'S JUST NOT AS OBVIOUS BECAUSE IT'S NOT IN FRONT OF US HERE ALL THE TIME.
IT'S TALKED ABOUT IN DIFFERENT AREAS.
GREAT. THANK YOU. THANK YOU, MR. CHAIR. THANK YOU VERY MUCH.
MAYOR PRO TEM ARNOLD. THANK YOU.
WE JUST HAVE TO FIGURE OUT HOW TO BE HUMANE ABOUT, UH, CREATING RESOLUTIONS.
AND OF COURSE MISS ON THE GOVERNOR'S [INAUDIBLE] YOUR FIRST NAME.
BUT I WILL SAY, MISS CHRISTIE, WE'LL DO LIKE I DID WHEN WE WERE GROWING UP AND YOUR TEAM.
UH, I THINK AS WE CONTINUE TO TALK ABOUT THIS, I CAN HEAR WHAT YOU'RE SAYING ABOUT DOWNTOWN.
BUT WE ALSO I JUST WANT TO MAKE ONE QUICK OBSERVATION AND THEN JUST A RECOGNITION AS WE BUILD SOME OF THESE NEW COMMUNITIES TOO THOSE ARE ALSO OPPORTUNITIES AS COUNCIL MEMBER MORENO SPOKE TO ABOUT FINDING OTHER AREAS.
I'M SURE PEOPLE DON'T WANT TO HEAR ME SAY TALK ABOUT HENSLEY FIELD, BUT AS WE TALK ABOUT A BRAND NEW LANDSCAPE AND AN EFFORT TO CREATE A CAMPUS THAT THAT THAT ADDRESSES HOLISTICALLY THE NEEDS, WE TALK ABOUT WRAPAROUND SERVICES, YOU HAVE A BRAND NEW OPPORTUNITY, EVEN THOUGH IT'S DOWN THE ROAD TO PUT IN A WORLD CLASS MODEL IN THAT COMMUNITY.
WHAT IS IT, OVER 800 SOMETHING ACRES THAT YOU CAN ACTUALLY PUT IN? WHAT IS MAYBE IT COULD BE A MODEL SINCE YOU ALL WE'VE NOW BEEN PUT ON THE RADAR WITH THE WHITE HOUSE JUST THINKING IN TERMS OF PLANNING WHERE YOU CAN GET THE HOUSING AND YOU CAN GET THE WRAPAROUND SERVICES THAT WOULD HELP TO REHABILITATE.
AND SO WE'VE GOT TO KEEP LOOKING FOR THOSE OPPORTUNITIES AS WELL.
SO I DID WANT TO MENTION THAT.
AND ALSO I HAVE TO TAKE AN OPPORTUNITY TO THANK MRS. GLORIA SANDOVAL, WHICH I KNOW SHE EATS, SLEEPS AND BREATHES THIS PARTICULAR CONVERSATION AND HER COMMITMENT THROUGH THE THROUGH THE YEARS OF THIS TOPIC.
BUT I DO WANT TO THANK YOU, MISS SANDOVAL, FOR WHAT YOU CONTINUE TO DO.
SO, MISS CROSSLEY, I WANT TO MAKE SURE YOU KNEW HER EFFORTS THERE, AS WELL AS MAYOR, CITY MANAGER, DEPUTY CITY MANAGER TOLBERT, THAT SHE IS ALWAYS ON HER JOB AND HER COMMITMENT IS GENUINE.
I KNOW THAT IS NOT SOMETHING THAT YOU'VE JUST GIVEN HER TO DO AS A JOB.
UH, AND I DID WANT TO MAKE SURE I MENTIONED THAT AND WE'RE PROBABLY SHE'S PROBABLY ON THE LIST WITH THE PRIEST AT THE POPE BECAUSE SHE [INAUDIBLE] WORKS AT THE CHURCH AS WELL. I'M GOING TO TELL YOU WHAT I DO KNOW.
AND THANK YOU FOR WHAT YOU ALL ARE DOING AND APPRECIATE YOUR EFFORTS.
SO THE QUALITY OF LIFE IS THERE FOR THEM AS WELL.
ROUND TWO. COUNCILMAN BLACKMON.
GO FOR IT. THE FIRST QUESTION HAVE ALL OF THE 758 VOUCHERS PLEDGED TO BE IN PLACE? THANK YOU FOR THAT QUESTION.
SO ALL OF THEM HAVE BEEN UTILIZED.
[01:05:04]
NUMBER OF HOMELESS ENCAMPMENTS BY DECEMBER OF 2022.HAS THAT HAPPENED? SO I CAN SAY THAT THE WAY THAT WE MEASURE THAT AND I BELIEVE WE'VE TALKED ABOUT THAT A LOT HERE, IS THAT WE DON'T LOOK NECESSARILY AT 311 BECAUSE IT'S A REPORT OF WHAT PEOPLE SEE, NOT NECESSARILY WHAT IS HAPPENING.
AND I CAN ALSO JUST TELL YOU, BEING AT COMMUNITY MEETINGS, I HAVE HEARD A LOT OF PEOPLE REALLY LATELY STARTING TO SAY, OH, WELL I NOTICED THAT, YOU KNOW, WHERE DID THOSE PEOPLE GO? I HOPE AND I GET TO SAY, WELL, YOU KNOW, THANK YOU FOR BEING WORRIED ABOUT THEM.
BUT ACTUALLY IT'S THEY'RE HOUSED AND THEY'RE DOING JUST FINE.
SO, YES, IT IS DRAMATICALLY MAKING THAT MAKING THAT DECREASE, LOOKING FOR THE WORD.
AND THEN HOW MANY PEOPLE DID THE BRIDGE SHELTER DURING PRE COVID AND HOW MANY ARE THEY SHELTERING NOW? SO PRE COVID, THEY WERE PUSHING CLOSER TO ABOUT 1,000 INDIVIDUALS.
WOODY HAD TO REDUCE SERVICES AND INCREASE DISTANCING AMONGST HIS GUESTS, THOSE GUESTS FROM UGM STARTED STAYING IN UNION GOSPEL MISSION. NOW HE SERVES ABOUT 700 INDIVIDUALS.
THE NUMBERS THAT HAVE GONE BACK UP TO PRE-COVID NUMBERS.
THE UGM GUESTS ARE STILL AT UGM AND HE IS SERVING CLOSE TO 700 A DAY FOR DAY SERVICES, ABOUT 360 LEAVE IN THE EVENING.
HE HAS MADE ADDITIONAL SPACE BEYOND JUST THE COTS THAT HE HAS NOW FOR GUESTS BY ADDING SLEEPING AREAS IN OFFICES AND IN HALLWAYS.
SO DURING THE DAY HE SERVES TWO, HE SERVES 700 APPROXIMATELY ON AVERAGE AND 240 OVERNIGHT.
THANK YOU. AND SO, CHRISTINE, I THINK YOU SAID YOU SERVED 2,700 2,800 INDIVIDUALS.
ARE THOSE UNIQUE INDIVIDUALS OR IS THAT OR ARE THOSE UNIQUE CASES? YES, THESE ARE DEDUPLICATED NUMBERS.
I'D HAVE TO LOOK AT THE DASHBOARD FOR TODAY'S EXACT NUMBER.
AND OVER 2,000 UNIQUE INDIVIDUALS HAVE BEEN HOUSED OUT OF THAT 2,700.
AND SO HAS ALL THE $25 MILLION SPENT.
I THINK YOU BROKE UP THERE A LITTLE BIT.
YOU WERE ASKING IF THE ENTIRETY OF THE $25 MILLION HAS BEEN SPENT, CORRECT? YES, MA'AM. OKAY.
BUT I CAN SAY THAT ONE OF THE THINGS WE'RE GOING TO BE TALKING ABOUT IN THE COMING MONTHS IS THAT WE BUDGETED EXTREMELY CONSERVATIVELY TO ENSURE THAT WE WOULD HAVE THE FULL COST OF FUNDING FOR EVERYONE.
AND THAT FUNDING DOES NOT FACTOR INTO THE ANNOUNCEMENT OF THE 6,000 BEING SERVED BY 2025.
SO WE COULD HAVE EVEN MORE THAN 6,000 HOUSED.
SO IF SO, WE SAW A 4% DECREASE IN HOMELESSNESS.
IS THAT CORRECT? YES, A 4% DECREASE IN HOMELESSNESS.
OKAY. AND SO IT SEEMS LIKE WITH THE 4% DECREASE, WE HAD 25%.
I GUESS HOW MUCH IS LEFT? AND THEN CAN YOU DO A COST BENEFIT ANALYSIS? AND IT SEEMS LIKE THAT IS A PRETTY HIGH, YOU KNOW, THAT SHOULDN'T WE HAVE GOTTEN A HIGHER DECREASE IN HOMELESSNESS WITH THAT MUCH OF INVESTMENT PUT IN? SO AS I SAID, IT'S THE 4% OVER FIVE YEARS, BUT IT'S 14% IN UNSHELTERED HOMELESSNESS BETWEEN 2022 AND 2023.
[01:10:02]
AND THOSE FOLKS ARE HIGHER COST AT FIRST.AND YOU DO SEE A LOWER COST OVER TIME, BUT THE FRONT END OF THAT DOES COST A LITTLE BIT MORE.
OKAY. AND DO WE HAVE ANY MORE MONEY LEFT OVER? IS THERE A IS THERE IS THERE ANY FUNDS OR WE'VE EXHAUSTED EVERYTHING? SO, AS I SAID, THERE ARE STILL FUNDS LEFT IN THE CONTRACT.
SO WE'LL BE LOOKING AT HOW DO WE WORK ON EXTENDING THE LIFE OF THAT CONTRACT.
AND I CAN'T SPEAK BECAUSE I'M NOT AN ATTORNEY, BUT WHAT WE'RE LOOKING AT THAT NOW BECAUSE AS WE'VE SAID, YOU KNOW, WE CAN CONTINUE DOING THE GREAT WORK THAT WE'RE DOING AND CONTINUE IT FOR QUITE A WHILE TO COME.
GREAT. THANK YOU. THANK YOU, MR. CHAIR. THANK YOU.
WHICH SUBCOMMITTEE WILL THIS? WILL IT BE UNDER FACILITIES? NO, IT GOES TO THE.
ECONOMIC DEVELOPMENT HOUSING AND HOMELESSNESS BOND SUBCOMMITTEE.
AND NOW WHEN YOU LOOK IN AND AROUND THE NEIGHBORHOOD, IT DOES LOOK DRAMATICALLY DIFFERENT.
IN 2005, THE BOND CALLS FOR THE BRIDGE AND THEN FOR SATELLITE SHELTER CAMPUSES THROUGHOUT.
WHERE ARE WE WITH THAT PLAN IN BUILDING SATELLITE CAMPUSES? IN TERMS OF SATELLITE CAMPUSES, I BELIEVE YOU'VE BEEN.
I'M ASKING FOR CLARIFICATION BECAUSE I WAS NOT HERE, BUT YOU'RE TALKING ABOUT THE CAMPUSES FOR HOUSING OR SHELTER IN EVERY DISTRICT? FOR SHELTERING AS EMERGENCY SHELTERS OUTSIDE OF THE MAIN BRIDGE DOWNTOWN.
AND SO WE DO HAVE A COUPLE THAT HAVE BEEN PRIVATELY BUILT AND WE CAN GET THAT MAP FOR YOU.
I DON'T HAVE IT IN FRONT OF ME, BUT I CAN TELL YOU THAT OVER THE YEARS THE FOCUS HAS SWITCHED FROM BUILDING EMERGENCY SHELTER TO BUILDING SUPPORTIVE HOUSING SO THAT WE CAN MOVE PEOPLE OUT OF SHELTER AND INTO HOUSING.
AND SO WHAT WE'VE DONE OVER THE PAST YEAR AND A HALF IS REALLY EASED THAT BOTTLENECK BY PROVIDING PLACES TO GO SO THAT PEOPLE CAN FLOW THROUGH THE SHELTERS MORE NATURALLY WHEN THEY NEED IT. BUT IT IS NOT THE END ALL, BE ALL.
AND SO WE CAN GET THAT MAP FOR YOU.
AND THANK YOU FOR THE QUESTIONS.
VICE CHAIR MORENO CHRISTINE ACTUALLY COVERED IT AT THE VERY END, BUT I THINK WHAT WE CAN SHOW YOU IS THAT AS WE'VE EVOLVED AS A CITY FROM THAT 2005 BOND PROGRAM TO WHERE WE ARE NOW, THAT A LOT HAS CHANGED THE FOCUS AROUND HOW WE HOUSE INDIVIDUALS, THE STRATEGIES, THE INVESTMENTS, THE PARTNERSHIPS, ALL OF THOSE THINGS HAVE REALLY CHANGED.
YOU KNOW, 20 YEARS AGO, WE DIDN'T HAVE THE RAPID REHOUSING PROGRAM THAT YOU SEE TODAY.
SO I THINK THAT AS WE GO FORWARD WITH WHAT WE'RE PROPOSING FOR THIS UPCOMING BOND PROGRAM IN 2024, THE CREATIVITY AND HOW WE LOOK AT HOUSING INDIVIDUALS FROM NOT JUST FROM A TRANSITIONAL FROM A SHELTERING, BUT TO A PERMANENT SOLUTION, I THINK IS WHERE WE WANT TO CONTINUE TO KEEP OUR ENERGY AND FOCUS OUR EFFORTS.
IT'S NOT JUST ABOUT THE CAPACITY PIECES, BUT THAT'S A CITY ASSET THAT WE'VE GOT TO MAINTAIN.
SO WE CAN DEFINITELY HAVE MORE CONVERSATIONS AROUND IT AS WE GO THROUGH THE BOND DISCUSSIONS.
BUT THANK YOU SO VERY MUCH FOR ALL THE QUESTIONS.
I JUST WANTED TO MAKE SURE THAT I SAY TO THIS BODY THINGS HAVE CHANGED.
I THINK WE'RE GOING IN THE RIGHT DIRECTION.
I WANT TO ECHO WHAT MAYOR PRO TEM ARNOLD SAID ABOUT MISS SANDOVAL.
[01:15:06]
SO THANK YOU FOR THAT.ONE THING THAT I WAS I WAS GLAD TO SEE IS SOMEONE WHO WAS HERE WHEN WE VOTED AND APPROVED THE 2017 BOND IS AN ALLOCATION OF FUNDING FOR FUTURE PROJECTS.
IT'S SO IMPORTANT THAT WE MAKE SURE THAT WE HAVE FUNDING THAT'S AVAILABLE FOR WHATEVER TYPE OF PROJECTS WE'VE TALKED ABOUT BUYING OLD HOTELS, APARTMENTS, THINGS OF THAT NATURE.
AND SO BEING MINDFUL OF THESE THINGS AS WE LOOK AT THE FUTURE AND KNOWING THAT THERE'S GOING TO BE A NEED IN ORDER TO NEED TO HAVE FUNDING AVAILABLE AS THESE OPPORTUNITIES PRESENT THEMSELVES.
AND SO I THINK $12 MILLION IS A GOOD NUMBER.
AND SO I DEFINITELY LOOK FORWARD TO WATCHING THIS PROCESS MOVE FORWARD.
NOW I'M GOING TO SUGGEST IT'S UP TO THE COMMITTEE HOW YOU CHOOSE TO GO FORWARD.
BUT IF THERE ARE AGENDA ITEMS THAT WE HAVE HERE.
SO LET'S JUST START THERE BEFORE WE GO INTO THE UPCOMING AGENDA ITEMS. SO IF WE HAVE SOME DISCUSSION ON THIS PARTICULAR AGENDA ITEM, COMMITTEE MEMBERS FIRST AND THEN WE HAVE COUNCILMAN MCGOUGH WHO'S HERE AND WE WILL ADDRESS ANY THOUGHTS, CONCERNS, WHATEVER YOU HAVE.
THANK YOU FOR JOINING US TODAY.
SO I'LL START WITH ANY COMMITTEE MEMBERS.
I HAVE A FEW QUESTIONS ABOUT ITEM C.
AND I APOLOGIZE IF SOME OF THESE WERE ANSWERED AT THE COUNCIL MEETING.
UNFORTUNATELY, I HAD TO I HAD TO LEAVE FOR THAT MEETING, SO I WASN'T ABLE TO BE THERE.
CAN YOU TALK FOR A MINUTE ABOUT THE REVENUE GOING INTO THE AREA IMPROVEMENTS? CAN YOU EXPLAIN THAT A LITTLE BIT MORE? WHAT WILL BE INVESTING IN WITH THAT, THOSE REVENUES? YES. DAVID NOGUERA, DIRECTOR OF HOUSING NEIGHBORHOOD REVITALIZATION AGAIN.
THE LEASE PAYMENTS THAT ARE RECEIVED THROUGH THE TENANT THE DEVELOPER IS THE SOURCE OF FUNDS FOR THE SIDEWALK ENHANCEMENTS.
ANY LIGHTING THAT MAY BE NEEDED.
SO THOSE ARE THINGS NORMALLY A DEVELOPER PAYS FOR.
SO IS THAT BECAUSE WE THE CITY WILL OWN IT? IS THAT WHY WE ESSENTIALLY HAVE TO PAY FOR IT? YEAH. THIS IS LAND ON PRIVATE PROPERTY.
THE CITY'S IT'S LAND THAT WOULD CONNECT THE PROPERTY TO FOREST LANE SO THAT IT'S MORE APPROPRIATE FOR THE CITY TO CARRY OUT THAT WORK.
I'M TRYING TO UNDERSTAND WHY THIS IS DIFFERENT AND WHY THAT REVENUE IS BEING SPENT ON CITY INFRASTRUCTURE AS OPPOSED TO OTHER SOURCES OF REVENUE OR BEING SPENT ON THE PROPERTY ITSELF. IT WAS JUST OUR RECOMMENDATION.
IF THE BODY WANTS IT TO GO IN A DIFFERENT DIRECTION, THAT'S FINE AS WELL.
BUT WE KNOW THAT JUST FROM LISTENING TO THE COUNCIL MEMBERS, LISTENING TO REPRESENTATIVES OF THE COMMUNITY, THERE WAS CONCERN ABOUT SIDEWALK ACCESS, LIGHTING THAT WAS NOT ON THE DEVELOPER'S PROPERTY, NOT ON THIS SITE.
OKAY. THE NEXT QUESTION THAT I HAVE IS CAN YOU ALSO CLARIFY THE CASH FLOW PART OF IT? BECAUSE THAT'S THE SOURCE OF THE CITY'S REVENUE ON THIS.
AND SO HOW THAT WORKS IN TERMS OF THE WAY THAT THE LEASE AGREEMENT WITH THE CITY WILL BE STRUCTURED SO THAT THE CITY ACTUALLY IS ASSURED AN APPROPRIATE CASH FLOW, JUST LIKE THEY WOULD IF IT WAS A PRIVATE DEAL BACK TO THE INVESTORS.
[01:20:01]
AND SO HOW DO WE MAKE SURE THAT THE CITY ISN'T LEFT WITH NOTHING? BECAUSE EVERYTHING WAS DETERMINED BY THE PROPERTY MANAGER IN TERMS OF THE INCOME, THE CASH FLOW, RIGHT.BUT OUR INTENT IS FOR THE PROJECT TO BE SUCCESSFUL, OF COURSE, AND WE WOULDN'T WANT TO START REQUESTING LEASE PAYMENTS BEFORE THE PROJECT HAS REACHED THAT SUSTAINABLE LEVEL WHERE THEY CAN PAY THEM.
RIGHT, RIGHT. AND SO THAT'S OUR STANDARD THAT ONCE THE PROJECT GETS TO A 90% OCCUPANCY RATE, THAT IS WHEN THE LEASE PAYMENTS WOULD KICK IN WITH RESPECT TO EXPENSES THAT ARE PERMISSIBLE OR RECOMMENDED PRIOR TO THE CITY RECEIVING ITS PAYMENTS, I'LL ASK AARON.
YEAH, I MEAN, I SEE YOUR CONCERN AND IT IS WARRANTED, RIGHT? LIKE THE DEVELOPER COULD JUST SAY, YEAH, WE JUST HAVE ALL THESE EXTRA EXPENSES AND THEY COULD JUST KIND OF TAKE ALL THAT MONEY INDIRECTLY BACK TO THEIR OWN POCKETS.
SINCE THAT IS A THIRD PARTY, IT'S NOT US AND IT'S NOT THE DEVELOPER.
WELL, I'M NOT SAYING ANYTHING NEFARIOUS WOULD EVER HAPPEN.
WHAT I'M MAKING SURE IS THIS OUR FIRST DEAL LIKE THIS? IT'S CERTAINLY MY FIRST DEAL LIKE THIS.
SO IS OUR IF IT'S NOT THE CITY'S FIRST DEAL, AND IF THIS MIMICS OUR EXISTING MODELS THAT WE'RE USING FOR HFC OR PFC, THEN IS THE LEASE AND THE REQUIREMENTS AND THE EXPENSES AND ALL THOSE ALL THAT MINUTIA, IS THIS MIRRORING THOSE OR ARE THERE NEW ELEMENTS HERE? IT'S A TYPICAL PFC STRUCTURE DEAL.
SO THE SAME THING WOULD GO WITH THE AUDIT AND THE EXPENSES AND ALL OF THOSE THINGS.
SO WE HAVE THOSE ASSURANCES AND WE ALREADY HAVE THAT MODEL.
THAT'S GREAT. IF I MAY, MR. CHAIR, I HAVE A COUPLE MORE QUESTIONS.
DO WE I HAD SOME QUESTIONS SENT TO ME, SO YOU'LL FORGIVE ME IF SOME OF THESE HAVE BEEN ANSWERED? CAN YOU WHO IS ULTIMATELY FINANCIALLY RESPONSIBLE FOR THIS? WHAT ENTITY? WHAT IS DO WE HAVE A SPECIFIC ENTITY? THE ULTIMATE RESPONSIBLE PARTY IS THE LP CYPRESS CREEK LP.
LET'S SEE WHAT ELSE. THE OTHER THING THAT I WANTED TO KNOW IS, LET'S SEE.
OH, CAN YOU TALK A LITTLE BIT MORE ABOUT AGAIN, IS IT JUST LIKE A PFC DEAL IN TERMS OF THE OPTION FOR PURCHASE AND THE CITY'S OUT AND ALL OF THOSE CHANGES THAT MIGHT HAPPEN TO THE DAY TO DAY OPERATION OF THIS? WELL, SIMILAR TO PFC IT IS, BUT THERE ARE SOME OTHER CAVEATS THAT ARE A LITTLE DIFFERENT THAT ARE SUBJECT TO TEXAS LOCAL GOVERNMENT CODE 272.001 AS IT RELATES TO THE CITY'S PUBLIC PURPOSE.
RIGHT. AND SO THAT'S WHAT I'M ASKING.
SO IF THE TENANT WANTS OUT OR IF WE WANT OUT, DOES IT WORK LIKE THE WAY A PFC DEAL DOES? OR IS THIS ARE THERE UNIQUE ELEMENTS IN THIS LEASE? YEAH. SO ON A PFC, AGAIN, THERE'S LIKE A 15 YEAR KIND OF LOCKOUT.
BUT WE CAN WITH THE MUTUAL AGREEMENT, WE CAN BOTH SELL THE PROPERTY AT OUR BENEFIT.
BUT THE PFC HAS THE FINAL SAY, RIGHT? THE DEVELOPER CAN'T JUST SAY I'M OUT.
RIGHT? YOU NEED TO SELL THIS, RIGHT.
IN THIS DEAL, TO MEET THAT PUBLIC BENEFIT TEST, THE LEASE NEEDS TO BE AT LEAST 39 YEARS.
SO THE DEVELOPER WOULD NOT HAVE THAT OPTION PRIOR TO THE 39 YEARS.
[01:25:01]
AND THEN AFTER THAT, IF THEY SAY THAT THEY WANT OUT, THEN THE CITY THEN.I MEAN, THE CITY OWNS THE PROPERTY.
SO THEN WHAT HAPPENS IN THIS DEAL? CORRECT, SO THERE'S A ONE TIME OPTION TO PURCHASE THE PROJECT FROM THE CITY SO THAT THAT IS AVAILABLE.
BUT IT IS SUBJECT TO THE STATE CODE THAT I REFERENCED EARLIER.
SO OUR ATTORNEYS WOULD HAVE TO PROBABLY OPINE ON THAT AT THAT POINT IF THE PARTNERSHIP WANTED TO OPT OUT AND PURCHASE THE PROPERTY. I'M DIGGING INTO THIS ONLY BECAUSE IT'S A FIRST TIME FOR US.
AND IF IT WORKS WELL, IT MAY BE ANOTHER MODEL DOWN THE ROAD.
CONNIE TANKERSLEY WITH CITY ATTORNEY'S OFFICE.
COULD YOU REPEAT YOUR QUESTION? BECAUSE I'M NOT SURE I UNDERSTOOD.
AND ALSO, I WANT TO PIGGYBACK WITH A FOLLOW UP ON THAT IF THE TENANT DOESN'T PERFORM.
SO I'LL ANSWER THE LAST QUESTION FIRST.
THE SECOND QUESTION WITH REGARD TO THE OPTION TO PURCHASE, THEY WOULD HAVE THE ABILITY TO PURCHASE IT UNDER $272.01 OF THE LOCAL GOVERNMENT CODE, WHICH REQUIRES STARTS OFF WITH FAIR MARKET VALUE OF THE PROPERTY AS CONSIDERATION.
THE CITY COUNCIL HAS AT THAT OPPORTUNITY.
HOWEVER, DUE TO THE FACT THAT IT'S AN EXCEPTION FOR LOW TO MODERATE INCOME HOUSING TO BE ABLE TO SELL IT TO THEM FOR LOWER THAN FAIR MARKET, SO THEY HAVE THAT ONE TIME OPTION AFTER THE INITIAL TERM HAS EXPIRED AND THE INITIAL TERM IS SET UP FOR 39 YEARS.
IF THEY DON'T BUY IT, THEN THEY CAN EXERCISE THEIR OPTION TO EXTEND THE LEASE AT THAT TIME.
THEY HAVE ONE. THEY'RE BEING PROVIDED ONE OPTION OF, I BELIEVE, SIX YEARS.
SO THEY COULD CONTINUE TO OPERATE IT FOR AN ADDITIONAL SIX YEARS.
SO THE PROPERTY WOULD COME BACK TO THE CITY.
THEY WON'T HAVE AN ADDITIONAL OPTION TO PURCHASE AT THAT TIME.
AND THEN IF SIMILAR, YOU RAISED TWO OTHER QUESTIONS.
OKAY. SO IF THERE'S A NON PERFORMANCE, IS THE PERFORMANCE MEASURES, ARE THOSE THE SAME AS THEY ARE FOR PFC? NOT JUST IN TERMS OF PROVIDING I DON'T MEAN JUST IN TERMS OF PROVIDING RENT APPROPRIATE UNITS, INCOME APPROPRIATE UNITS AT THE RENT.
YES. SO, YEAH, THE TENANT WILL BE RESPONSIBLE TO MAINTAIN THE PROPERTY AS A CLASS A PROPERTY.
ALSO, IF THERE ARE ANY OTHER CITY SUBSIDIES THAT WILL GO INTO THE PROJECT, SUCH AS A NOFA FUNDING SOURCE, THERE ARE ALSO PERFORMANCE MEASURES THAT WE WILL REQUIRE AS WELL. AND WE'LL BE AUDITING THE WAY WE DO EVERY PFC DEAL.
OUR COMPLIANCE TEAM WILL GO OUT EVERY YEAR TO MAKE SURE THOSE THINGS ARE KEPT IN COMPLIANCE.
DID YOU WANT TO ADD SOMETHING? AND I SHOULD ALSO NOTE THAT THIS IS A TAX CREDIT PROJECT.
SO YOU HAVE THE STATE THAT WILL ALSO BE MONITORING FOR COMPLIANCE.
THANK YOU. OKAY. AND THEN IN TERMS OF BACK TO THE LEASE, SO WHAT HAPPENS IF THEY WANT OUT? WE WOULD THEN TAKE IT BACK OVER IN TERMS OF THE MANAGEMENT UNTIL WE FOUND EITHER A MANAGER OR A PARTNER OR WHATEVER.
I MEAN, IF THEY 46, 45 YEARS I GUESS.
SO IF THEY WANT OUT AT THE END OF THE TERM.
SO THEY WOULD THEY DON'T HAVE THE OPTION TO ELECT TO EXTEND IT.
SO THEY ARE OUT AT THE END OF THE TERM.
OKAY. SO THE PROPERTY IS OURS.
WE CAN DO AN RFP AND GET ANOTHER TENANT OR WE CAN HIRE SOMEBODY TO OPERATE AND MANAGE IT.
BUT IT'S BASICALLY OUR PROPERTY AT THE END OF THE TERM.
THANK YOU. THAT'S ALL I HAD, MR. CHAIR. THANK YOU.
I'M KIND OF GOING THROUGH SEVERAL.
THIS IS THE SAME ITEM THAT COUNCILWOMAN SCHULTZ JUST MENTIONED, JUST ELABORATED ON.
AND I JUST REALLY WANTED TO FOLLOW UP.
I THINK THAT'S REALLY WHERE MY HEAD IS.
[01:30:02]
AND IN MY OPINION, WE DID NOT FARE TOO WELL WITH THAT.AND SO WHEN WE LOSE OUT SOMETIMES ON SOME OF THESE DEALS AND THE COUNCIL THAT COMES AFTER US HAS TO MAKE SOME DECISIONS ABOUT, YOU KNOW, HOW DID WE LOSE AND HOW DID WE GET OURSELVES IN THAT POSITION.
SO THANK YOU FOR ASKING THAT QUESTION BECAUSE IT IS SOMETHING THAT STAYS ON MY MIND.
AND AS YOU WERE TALKING, I JUST BEGAN TO THINK OF A SIMILAR, SITUATION WHEN THE LESSEE, I GUESS YOU WANT TO CALL HIM THAT WAS ABLE TO BASICALLY, IN MY OPINION, GET AWAY WITH MURDER.
AND SO WE DON'T WANT THAT TO HAPPEN AGAIN.
SO I DID WANT TO JUST FOLLOW UP WITH YOU AND APPRECIATE THE FACT THAT YOU PULLED THAT OUT.
SURE. COUNCIL MEMBER BLACKMON.
I DO HAVE A COUPLE OF QUESTIONS FROM MS. MENDELSOHN.
SO IF THE STANDARD PRACTICE IS TO NOT RECEIVE LEASE PAYMENTS UNTIL THEY'RE 90% OCCUPIED, IS THAT CORRECT? CORRECT. AND SO IS THERE A TIME PERIOD IN WHICH THEY HAVE TO GET 90% OCCUPIED, MEANING THAT THEY COULD THEY KEEP IT AT 88% TO AVOID EVER MAKING PAYMENTS TO THE CITY? SIX MONTHS. SO BASICALLY DARWIN SPEAKING, THE INTERIM ASSISTANT DIRECTOR.
THE STRUCTURE IS A TYPICAL PFC STRUCTURE.
SO THE RENTS ARE DUE, WHICH IS BASICALLY 20% OF THE CASH FLOW.
SO THAT WILL START AFTER SIX MONTHS ONCE THE PROPERTY REACHES THE 90% THRESHOLD OF STABILIZING.
SO IS THAT A BOTH AND OR IS IT JUST EITHER OR? OR IS IT? SO I THINK YOU'RE SAYING IF THEY PROLONG GETTING TO 90%, IS THAT RIGHT? IF SOMEHOW IT HAPPENED.
LIKE IF THERE'S A NATURAL OCCURRENCE, LIKE WHY IN OTHER WORDS, THAT 90% THRESHOLD, IS IT ALWAYS GOING TO BE THE CASE OR IS THERE A WELL, YOU'VE GOT 60 OR 90%.
SO, I MEAN, 60 YOU'VE GOT SIX MONTHS OR 90%.
SO WE WOULDN'T IF THERE'S SOME ACT OF GOD AND, YOU KNOW, SOME NATURAL DISASTER TORNADO OR WHATEVER IT IS, WE WOULDN'T ASK THEM TO START MAKING PAYMENTS IF THEY ARE NOT AT A STABILIZATION RATE OF OCCUPANCY.
I THINK THAT'S ONE OF THE DETAILS WE'RE GOING TO HAVE TO SPELL OUT IN THE LEASE AGREEMENT.
BUT TYPICALLY, IN ANY ONE OF THESE PROJECTS THAT WE DO, WE DON'T ASK FOR LEASE PAYMENTS BEFORE THEY GET TO THAT STABILIZATION RATE.
90% IS STANDARD TO BE CONSIDERED STABILIZED IN THE MULTIFAMILY MARKET? BUT I WOULD ADD, YOU KNOW, THERE'S NO INCENTIVE FOR THE DEVELOPER TO NOT OCCUPY THE PROPERTY THAT OUR PAYMENTS ARE BASED ON A CASH FLOW.
A PERCENTAGE OF CASH FLOW LIKE THIS PROPERTY WOULD FAIL LONG BEFORE THEY EVER MADE A PAYMENT.
SO WE'RE JUST TAKING 20% OF THE, YOU KNOW, OF THE NET PROFITS OF THIS PROPERTY.
SO IT WOULD, IF THAT MAKES SENSE.
SO THEY COULDN'T MAKE IT FINANCIALLY WORK IF THEY ARTIFICIALLY KEPT IT BELOW THE 90% THRESHOLD.
OKAY. AND I WOULD HOPE THAT YOU ALL WOULD STAY ON THAT AS WELL.
THAT WAS MY EDITORIALIZING, NOT MRS. MENDELSOHN'S. OKAY.
THE SECOND QUESTION IS, IF THEY WANT TO PURCHASE FROM THE CITY IN 39 YEARS, WHAT IS THE BASIS FOR THE PRICE AND WHERE WOULD THAT BE OUTLINED IN OUR DOCUMENT? I THINK WE'LL HAVE TO.
DARWIN WADE, INTERIM ASSISTANT DIRECTOR.
OKAY. SPELLED OUT. IT'S NOT STIPULATED CURRENTLY.
SO THE WAY THIS IS CONNIE TANKERSLEY.
[01:35:07]
CODE THAT BASICALLY GUARANTEES THAT THE CITY WILL GET A STARTING POINT OF FAIR MARKET VALUE.OKAY. AND AT THAT, AT SUCH TIME AS THEY WOULD EXERCISE THEIR OPTION TO PURCHASE, WE'D HAVE TO GO THROUGH THE SALE PROCESS, WHICH REQUIRES AN APPRAISAL OF THE PROPERTY AT THAT TIME, AND THEN TO GIVE COUNCIL A RECOMMENDATION OF WHETHER OR NOT IT WOULD WANT TO PROCEED WITH ACTUALLY CONSUMMATING THE SALE.
COUNCIL MEMBER MCGOUGH. THANK YOU, CHAIR.
SO I THINK THAT'S A GOOD PLACE TO START.
WHERE? CAN YOU PLEASE PROVIDE TO THE HOUSING COMMITTEE THE LATEST DRAFT FORM OF WHAT THE LEASE WOULD BE PRESENTED FROM ON THE CITY'S BEHALF? SO WE'RE CURRENTLY IN THE PROCESS OF DRAFTING IT.
WELL, IN THE PAST WHEN WE'VE LOOKED AT DIFFERENT TYPES OF TEXAS GOVERNMENT PROJECTS LIKE THIS, WE THIS COUNCIL DEMANDED THAT WE HAD THE FULL LEASE AND TERMS AVAILABLE FOR REVIEW. AND I WOULD SUGGEST THAT'S HELPFUL EVEN AS WE'RE TALKING ABOUT SOME OF THESE ISSUES RIGHT NOW, IF THAT WAS ALREADY IN DOCUMENT, WE COULD SEE WHAT WE'RE TALKING ABOUT BECAUSE I MEAN, THERE ARE SOME OF THESE ISSUES THAT ARE OUTSTANDING THAT WE DON'T HAVE THE ANSWER TO.
WHAT YOU JUST DESCRIBED AS THE PROCESS FOR POTENTIAL PURCHASING OF THIS IN THE END OF THE TERM.
WHY WOULD WE INCLUDE $1 MILLION DOLLARS IN THE AGREEMENT NOW? I'M SORRY. WHY WOULD WE INCLUDE A MILLION? WE DON'T HAVE SUCH A PROVISION.
OKAY, IT WAS IN IT, BUT IT'S BEEN TAKEN OUT? THAT WAS SOMETHING THAT THE DEVELOPER HAD PROPOSED.
AND STAFF DID NOT ACCEPT THAT.
AND THEN AS I SAID BEFORE, IT WOULD REQUIRE AN APPRAISAL OF THE PROPERTY.
IT'S HARD TO DO AN APPRAISAL AT THIS POINT BECAUSE THE PROPERTY IS NOT FULLY DEVELOPED.
IN THE MEMO, IT TALKS ABOUT THE NUMBER OF UNITS AND THERE'S SOME REFERENCE TO HOUSING TAX CREDIT UNITS, BUT THEN IT ALSO SAYS THAT THERE'S A TOTAL OF 271 UNITS OF AFFORDABLE HOUSING AVAILABLE FOR RESIDENTS IN DISTRICT 10.
DOES THAT INCLUDE THE NUMBER OF UNITS FROM DALLAS HOUSING AUTHORITY? NO, THE 271, THAT NUMBER IS COMPRISED OF 168 LIHTC UNITS BY THE NORTHGATE VILLAGE APARTMENTS.
AND THE REMAINING 103 WOULD BE THE UNITS THAT WILL BE PROVIDED BY CYPRESS CREEK.
IN THE MEMO, WE'RE TALKING SPECIFICALLY ONLY ABOUT HOUSING TAX CREDITS, NOT AFFORDABLE HOUSING.
CORRECT. AND SO WHEN WE LOOK AT WE JUST PICK UNITS AVAILABLE TO UP TO 60% OF AMFI.
IN DISTRICT TEN, THERE'S 12,206 AS OF LAST YEAR.
IS THAT CORRECT? I WOULD HAVE TO CONFIRM THAT INFORMATION.
AND I'M JUST READING FROM YOUR MEMO AND THERE'S UP TO 80% AMFI.
THERE'S 23,818 IN DISTRICT 10.
BOTH OF THOSE ARE MORE THAN ANY OTHER DISTRICT IN THE CITY.
AND LET'S BE CLEAR WITH THAT WHEN WE'RE REPORTING IT AND TELLING THIS COUNCIL THAT DATA.
IS THAT AGREEABLE? ABSOLUTELY. OKAY.
PRIVATE. THE ISSUE IS WE'RE ALL TALKING ABOUT HERE IS THE PRIVATE DEED RESTRICTION.
AND WHEN WE TALK ABOUT THE MVA AND IT'S WHY DOES THE MVA NOT INCLUDE THIS AREA? THE MVA LOOKS AT RESIDENTIAL AREAS.
SO IT SO THIS SPECIFIC AREA WAS NOT RESIDENTIAL AT ALL AND HASN'T BEEN EVER.
OKAY. AND THERE WAS PRIVATE DEED RESTRICTIONS THAT HELPED MAKE IT NOT BE RESIDENTIAL, IS THAT CORRECT? IT'S PART OF THE HISTORY.
[01:40:03]
THAT'S A BIG PART OF IT.AND WE KEEP TALKING ABOUT THE PFC.
THE PFC REJECTED THIS DEAL OR THEY WANTED INDEMNITY AND DID NOT APPROVE IT THAT WAY.
IS THAT CORRECT? YES, THEY APPROVED IT UPON CONDITION OF INDEMNITY.
OKAY. ON NUMBER THREE, ON THE MEMO, IT TALKS ABOUT THE CITY AS LANDLORD WILL AT ALL TIMES REMAIN FEE OWNER OF THE PREMISES AND WILL HAVE NO OBLIGATIONS FOR MAINTENANCE AND OPERATION OF THE PREMISES DURING THE TERM OF THIS LEASE.
HOW CAN THE CITY DO THAT? THAT'S A STANDARD PROVISION IF THE LANDLORD NEGOTIATES THAT IN A GROUND LEASE.
TYPICALLY. SO IF THERE'S A NUMBER OF CODE VIOLATIONS ON THE PROPERTY AND THINGS FALL INTO DISREPAIR OR WHATEVER, AND WE AS THE CITY GO ON AND LOOK AT THOSE ISSUES, WHO DO WE HOLD ACCOUNTABLE? WE CAN HOLD THE TENANT ACCOUNTABLE BECAUSE WE'LL HAVE THE STANDARD INSURANCE AND INDEMNIFICATION PROVISIONS THAT WOULD HOLD THEM RESPONSIBLE FOR ANY KIND OF VIOLATIONS OF OUR LEASE. AND ONE OF THE TERMS OF THE LEASE IS THAT THEY PERFORM TO CERTAIN STANDARDS.
AND SO WHEN THE CITY AUDITS, THE CITY WILL HAVE THE OPPORTUNITY TO GIVE THEM NOTICE OF ANY KIND OF VIOLATIONS OF THE LEASE ITSELF AND POSSIBLY HOLD THEM IN DEFAULT FOR THAT AND TAKE.
SO WHAT HAPPENS? WHAT HAPPENS IF THEY DON'T FOLLOW THROUGH WITH THOSE REQUIREMENTS? SO THE CITY WOULD HAVE THE RIGHT TO TERMINATE IF AFTER NOTICE AND OPPORTUNITY TO CURE, THEY REMAIN IN DEFAULT JUST LIKE A STANDARD LEASE TENANT.
OKAY. IN NUMBER FIVE, WE TALK ABOUT THE AFFORDABLE UNITS AND THAT THEY'RE INCOME RESTRICTED.
HOW LONG WILL THAT INCOME RESTRICTION BE IN PLACE.
OKAY. I APPRECIATE THE QUESTIONS EARLIER.
I'M NOT SURE I TOTALLY UNDERSTAND HOW THAT WILL BE DETERMINED.
NUMBER 7, IT TALKS ABOUT THE TENANT'S INDEMNITY.
WE'RE FAIRLY CERTAIN THAT WE WILL BE SUED.
HAVE WE TALKED ABOUT THE FULL AUTHORITY OR I GUESS THE ARE WE SECURE FROM THE CITY'S PERSPECTIVE THAT INDEMNITY WILL ACTIVELY INDEMNIFY THE CITY APPROPRIATELY? SO AS WE'VE SAID BEFORE, THE DEED RESTRICTIONS ARE UNENFORCEABLE AGAINST THE CITY OF DALLAS, THE INDEMNITY I BELIEVE IN THAT PROVISION IS FOR ANY KIND OF COMPENSATION SUITS THAT WOULD ARISE AS FROM A PARTY CLAIMING THAT WE'VE DAMAGED THEIR PROPERTY IN GOING FORWARD WITH THIS TYPE OF PROJECT.
BUT WE KNOW WE'RE GOING TO BE SUED FOR IT.
SO, FOR EXAMPLE, WHAT IS THE ESTIMATED DEFENSE COSTS ON SOMETHING LIKE THIS? I'D HAVE TO DEFER TO OUR LITIGATION.
I CAN TAKE THAT QUESTION BACK TO THEM AND HAVE THEM REACH OUT TO YOU COUNCIL MEMBER.
AND WHAT SECURITY DO WE HAVE THAT THIS PARTICULAR TENANT IS ABLE TO ADEQUATELY INDEMNIFY US BASED ON THE EXPECTED LITIGATION AND OR WHATEVER OTHER COMES FROM THAT? SO I CAN'T SPEAK FOR THE DEVELOPER, BUT MY UNDERSTANDING IS THAT HE IS WILL BE PURSUING THIS TRANSACTION WITH FINANCING FROM A LENDER.
AND SO THE LENDER WILL HAVE REQUIREMENTS AS WELL.
OUR EXPECTATION WOULD BE THAT THEY WOULD HAVE TO HAVE SATISFIED THE LENDER REQUIREMENTS TO BE ABLE TO PERFORM UNDER THE LEASE TERMS. SO THAT IN ITSELF IS A LOT OF FINANCING BACKING AND OF COURSE YOU HAVE THE ASSET AS WELL WHEN IT GETS DEVELOPED.
SO THE VALUE OF THE ASSET AS WELL, IT CAN BE LIQUIDATED.
PREVIOUS DEALS LIKE THIS, WE'VE HAD A DEMO BOND OR SOMETHING LIKE THAT.
IS THAT GOING TO BE IN THE TERMS OF THIS AGREEMENT? SO WHAT WE'VE DONE IS THE TYPICAL PERFORMANCE AND PAYMENT BONDS THAT WILL BE IN PLACE WHEN THEY'RE ACTUALLY UNDERGOING DEVELOPMENT AND THE CONSTRUCTION SO THAT WE CAN ASSURE THAT THE CITY WILL GET SOMETHING BUILT OUT BECAUSE WE DON'T WANT TO HAVE THEM FALL OUT OF THE PROJECT MIDSTREAM AND NOT HAVE, YOU KNOW, HAVE A HALF CONSTRUCTED DEVELOPMENT.
SO WE WILL HAVE THE PERFORMANCE AND PAYMENT BONDS PUT ON THERE.
[01:45:04]
EVEN SOME OF THE LEASE PAYMENTS GOING TO THINGS LIKE THIS.AND TO THE EXTENT THAT THERE'S A WAY TO PROVIDE FUNDING TO INCREASE THE SAFETY, WHETHER IT'S DEDICATED PATROLS, THOSE KIND OF THINGS, WE WOULD LIKE THAT INCLUDED IN THE TERMS OF THE LEASE HERE AND NOT JUST THE LANGUAGE HERE, TALKS ABOUT CONSULT AND RECOMMENDATIONS AND THINGS LIKE THAT, BUT THAT'S MEANINGLESS UNTIL WE PUT IT IN THE TERMS OF THE LEASE. AND SO THAT'S SOMETHING I WOULD LIKE TO SEE IN THIS EARLIER DRAFT AS WE CAN POSSIBLY HAVE.
IF IT DOESN'T, THEN THAT'S WHEN WE HAVE, I THINK, SOME OF THE ISSUES.
DO YOU HAVE THE APPROPRIATE EXPERTISE ON THAT? WHICH ITEM WERE YOU POINTING TO? IT'S NUMBER 22. 22.
SO WE DO HAVE AN INSPECTIONS TEAM.
WE DO HAVE CONSULTANTS THAT WORK THROUGH OUR DEPARTMENT.
SO, NO, I'M NOT A CONSTRUCTIONS EXPERT, BUT THAT'S PART OF OUR TEAM.
AND I JUST FEEL LIKE WHATEVER CHECK THERE CAN BE ON THAT SYSTEM, WE NEED TO DO SO.
AND I'M NOT I DON'T BELIEVE YOU HAVE THE EXPERTISE TO DO SO.
OKAY. IT WAS TALKED ABOUT EARLIER, BUT THE LEASE PAYMENTS, WHERE DO THE LEASE PAYMENTS GO AS IT RELATES TO THE SOURCE OF FUNDS WHEN IT COMES TO THE CITY? I CAN TALK ABOUT THAT.
IT'S CALLED LEASE PAYMENT REVENUE.
IT HAS ITS OWN FUND, HAS ITS OWN REVENUE CODE, AND THE DEPOSITS WILL BE USED BASED ON THE RECOMMENDATIONS THAT WE PUT INTO THE MEMO, BASED ON COUNCIL'S APPROVAL OR DIRECTION, THAT THAT'S WHERE THOSE FUNDS WILL BE USED.
AND WE SET ASIDE USES FOR THOSE FUNDS.
BUT IT'S A SEPARATE FUND JUST FOR LEASE REVENUES AND FEES FOR THIS PROJECT.
AND WHO MANAGES THAT? IT'S MANAGED BY THE BUDGET OFFICE AND I BELIEVE OUR CONTROLLER, OUR CHIEF FINANCIAL OFFICER.
OKAY. SO THAT'S WHO AUDITS AND EVERYTHING CONTROLS THAT FUNDING.
AND I HAD A LONG MEETING WITH THEM ABOUT THIS.
AND WITH COUNCIL'S APPROVAL BASED ON THE USES.
COUNCIL'S APPROVAL NOW OR COUNCIL'S APPROVAL WHEN THE FUNDS WOULD LATER BE USED? SO WHAT WE'RE INCLUDING IN HERE IS THE DIRECTION THAT THOSE FUNDS WOULD GO.
SO WE'RE SAYING THAT THE CPTED REVIEW WILL BE DONE, RECOMMENDATIONS WILL COME OUT OF IT, THEY'LL BE REQUIRED TO CARRY OUT THOSE ACTIVITIES SEPARATELY, WE WILL BE WORKING WITH THE DIRECTOR OF TRANSPORTATION AND PUBLIC WORKS WHO WILL IDENTIFY LIGHTING AND SIDEWALK ENHANCEMENTS THAT ARE NEEDED IN THE AREA BEYOND THE PROJECT.
AND THOSE FUNDS WILL GO TOWARDS THAT.
WE DON'T KNOW YET WHAT THAT WILL COST.
IF IT'S A PORTION OF THIS FUND, THEN IT'LL BE A PORTION.
IF THERE IS SOME FUNDS REMAINING, THEN WE WOULD COME BACK TO COUNCIL AND SAY, OKAY, HERE'S WHAT WE'RE SEEING THAT'S REMAINING OR THAT WILL BE REMAINING AND WE'LL COME TO A COUNCIL WITH A RECOMMENDATION ON HOW TO DIRECT THOSE.
AND DO YOU HAVE PROPOSED PERFORMANCE MEASURES THAT WOULD INCLUDE IN THIS AGREEMENT EITHER THAT YOU WOULD USE ON OTHER PROJECTS OR THINGS THAT WE WOULD INCLUDE IN THIS THAT WE COULD GO AHEAD AND GET THE DRAFT OF AS WE'RE LOOKING AT THAT.
SO THERE ARE, YOU KNOW, PERFORMANCE METRICS AS IT RELATES TO CONSTRUCTION TIMELINE, PERFORMANCE METRICS, AS IT RELATES TO AFFORDABILITY OF RENTS AND COMPLIANCE WITH THE LEASE REQUIREMENTS, AS WELL AS ANY RESTRICTIONS THAT WE PLACE ON THOSE UNITS FOR THE FORESEEABLE 20 YEAR FUTURE.
WHEN IT RELATES TO NOFA PROJECTS.
AND OF COURSE THERE'S A 45 YEAR LARA THROUGH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS.
[01:50:01]
SO OUR STAFF WILL ENSURE THAT THE TENANT COMPLIES WITH ALL OF OUR PERFORMANCE METRICS.AND ONE OF THE THINGS WE TALKED ABOUT WAS TRANSPORTATION FOR RESIDENTS HERE AND THAT KIND OF THING.
IS THAT SOMETHING WE CAN INCLUDE IN THE TERMS AS WELL? WE LOOKED AT THAT AND SAW THAT IT PRESENTED A NUMBER OF LIABILITY ISSUES, PARTICULARLY BECAUSE THE CHILDREN ARE MINORS.
SO IT DIDN'T SEEM FEASIBLE FOR THIS PROJECT.
AS IN THE WAY OF SUMMARY, I THINK THERE'S I THINK THERE'S LEGAL ISSUES.
I THINK THERE'S CERTAINLY COMMUNITY ISSUES, THE VAGUENESS OF SOME OF THE TERMS THAT'S STILL OUTSTANDING COULD GO A LONG WAY IN HELPING IN THE COMMUNITY AS IT RELATES TO WHAT'S GOING ON HERE, I STILL GET TONS OF QUESTIONS ON WHAT'S REALLY HAPPENING.
SO THE MORE WE CAN SPECIFY THOSE THINGS, I THINK THE BETTER.
I THINK MAYOR PRO TEM SAID IT WELL.
AT THIS POINT, IT'S ABOUT PROTECTING THE CITY.
AND, YOU KNOW, EVEN WHEN WE HAVE EVEN IF IT'S CRAZY FINANCIALLY, BUT AN INCENTIVE THAT SAYS, HEY, KEEP YOU UNDER 90% OCCUPANCY IS NOT SOMETHING WE SHOULD INCLUDE IN LEASES.
IT'S JUST DOESN'T MAKE MUCH SENSE TO ME.
THAT BEING SAID, THANK YOU, MR. CHAIR, AND WE'LL CONTINUE TO FOLLOW THIS PROJECT AND ASK MORE QUESTIONS.
THANK YOU. COUNCIL MEMBER MCGOUGH.
WE HAVE A NUMBER OF UPCOMING AGENDA ITEMS. WHAT WE CAN DO IS WE CAN HAVE ANY DISCUSSION ON ANY PARTICULAR ONES.
I KNOW MAYOR PRO TEM WANTS TO DISCUSS ITEM E AND F.
DOES ANYONE HAVE ANY ISSUES OR CONCERNS WITH D? HEARING NONE. MAYOR PRO TEM WE CAN DISCUSS E THEN F.
ALL RIGHT. THANK YOU. YOU WANT ME TO ADDRESS BOTH OF THOSE? AS I SPEAK? ALL RIGHT. SO THIS IS NOT A LONG, DRAWN OUT CONVERSATION ON ITEM E ON THE UNITED WAY OF METROPOLITAN DALLAS. THE QUESTIONS I WOULD LIKE MAYBE THE ISSUES THAT I WOULD LIKE FOR YOU TO ADDRESS BEFORE WE GET TO COUNCIL IS THE MARKETING PIECE, HOW THEY'RE GOING TO GET THIS INFORMATION OUT SO THAT IT IS PERMEATING THROUGH THOSE COMMUNITIES THAT NEED IT.
IF INDEED WE'RE GOING TO ADDRESS AND I'M HOPING THAT WE ARE COMMITTED TO DIVERSITY AND INCLUSION IN THIS PROCESS, BECAUSE I HAVE HAD MY COATTAIL PULLED AND WE [INAUDIBLE] THE UNITED WAY, BUT WHAT MY COATTAIL WAS PULLED ABOUT WAS AND WHAT IN THAT PERSON'S OPINION, THE LACK OF ACROSS THE BOARD EQUITY IN TERMS OF DIVERSITY AND INCLUSION ON THESE SUB CONTRACTS.
AND THE OTHER PIECE IS I DIDN'T GET A CHANCE TO GET FOLLOW UP.
COUNCIL MEMBER CHAIR THOMAS AND I ATTENDED A HOUSING CONFERENCE AT PAUL QUINN SPONSORED BY NAREB A COUPLE OF MONTHS AGO.
AND SO ONE OF THEIR CHALLENGES IS INCLUSION IN THESE TYPES OF CONVERSATIONS.
SO I DIDN'T KNOW AND I'M WAITING TO SEE.
OKAY, HERE IT IS. IF THEY WERE A NONPROFIT CHAIRMAN THOMAS, BUT SHE SAYS THEY'RE OKAY.
SO NAREB IS A C6, WHATEVER IT IS.
BUT OUR PARENT ORGANIZATION AND LOCAL AFFILIATE IS A 501C3.
SO WOULD THEY BE ELIGIBLE UNDER THIS PARTICULAR PROGRAM TO APPLY? THANK YOU FOR THE QUESTIONS.
WE'RE TALKING ABOUT IT HERE PUBLICLY.
AND THEN WE HAVE OTHER SOURCES.
WE HAVE OUR DHAP PROGRAM, OUR [INAUDIBLE] PROGRAM THAT ALL MARKET OUR PROGRAMS CITYWIDE.
AND WE WILL CONTINUE TO DO MARKETING ON THIS EFFORT.
AND THIS IS A GREAT OPPORTUNITY FOR FOLKS TO COME IN AND LEARN HOW THAT WORKS.
[01:55:01]
ALL RIGHT. MY BIGGEST CONCERN WAS TO MAKE SURE I ADDRESSED THE CONVERSATION AROUND THE SESSION THAT WE ATTENDED WITH NAREB, WHICH IS YOUR PRETTY MUCH YOUR BLACK REALTORS GROUP WHO SEEM TO BE LEFT OUT OF MANY OF THESE CONVERSATIONS.AND I WILL SAY, I KNOW THAT CITY WORKS IN TERMS OF MARKETING AND WE CONTINUE TO TALK ABOUT THE NEED TO EXPAND AND EXPOUND ON THE ISSUES THAT THE COMMUNICATION CONTINUES TO FALL SHORT.
IT'S JUST LIKE IT GOES SO FAR AND IT FALLS OFF THE CLIFF.
I CAN'T SPEAK FOR UNITED WAY, BUT WHAT I AM SAYING TO YOU IS THAT AS AN EAR, LISTENING TO FOLKS WHO ARE SAYING WE'RE NOT GETTING THAT INFORMATION AND MY INVESTIGATION IS, ARE YOU GETTING EMAIL? YOU KNOW, JUST WHERE ARE YOU? BUT I DID WANT TO MAKE SURE TODAY THAT I ADDRESSED THIS ISSUE BEFORE WE COME TO COUNCIL.
SO THE MARKETING PIECE, I THINK WE NEED TO HAVE A PLAN FOR THAT.
WE'RE DOING LOCAL NEWSPAPERS, JUST, YOU KNOW, NEIGHBORHOOD NEWSPAPERS, TELEVISION.
I KEEP SAYING THE SAME THING OVER AND OVER.
WE HAVE TO BE VERY AGGRESSIVE ABOUT THE MESSAGE THAT WE SAY WE WANT TO GET OUT.
SOMETIMES THEY DO, SOMETIMES THEY DON'T.
BUT I DON'T KNOW IF THEIR BOARD IS ACTUALLY DIVERSE AND INCLUSIVE EITHER.
SO YOU HAVE TO HAVE INDIVIDUALS WHO UNDERSTAND VARIOUS COMMUNITIES AND IF THEY DON'T HAVE THE ANSWER ON HOW TO GET OUT AND THE PEOPLE TO REACH, I THINK THIS IS THE TIME TO DO IT BECAUSE WE'RE GIVING MONEY.
I THINK THEY HAVE TO MATCH. IS THAT RIGHT? THEY HAVE TO GET A MATCH.
YES. SO THAT'S THAT'S THE MAIN THING I WANT TO SPEAK ON THAT.
BUT THAT WAS MY BIGGEST CONCERN, CHAIRMAN, IS THAT IT IS THE DIVERSITY AND INCLUSION PIECE ON THIS MONEY THAT WE'RE GIVING TO ONE OF THE LARGEST AND MOST AGGRESSIVE NONPROFITS THAT HELPS US GET A LOT OF ISSUES ADDRESSED, AND I APPRECIATE THAT.
ON ITEM E CHAIR AND COUNCILMEMBERS, I'M GOING TO SIMPLY ASK MR. DAVID WE WILL GET TOGETHER BEFORE THE MEETING BECAUSE I DO HAVE SOME QUESTIONS IN TERMS OF THIS PARTICULAR DEAL AS IT RELATES TO THAT CORPORATION. SO WE WILL FOLLOW UP WITH YOU ON THAT, BEFORE WE VOTE.
AND THIS IS SUPPOSED TO BE ON THE JUNE, IS IT THE 14TH? MR. DAVID.
THIS ITEM IS COMING TO COUNCIL.
WHEN IS IT COMING TO COUNCIL? YES, JUNE 14TH.
SO THEN WE'LL HAVE A CHANCE TO ADDRESS THAT BEFOREHAND.
IF I CAN GET THEM ADDRESSED BEFORE THEN.
REALLY TO CHAIR, THAT IS REALLY ALL THAT I HAVE AT THIS POINT.
THANK YOU. THANK YOU VERY MUCH.
IS IT OKAY? I'LL GET YOU. EXCELLENT POINT.
SO I'M GOING TO HOLD OFF WHAT I WAS GOING TO SAY.
DAVID KNOW HOW I FEEL ABOUT THAT.
YEAH, THAT ONE. AND THEN I'M HOSTING ON THURSDAY NIGHT A DISCUSSION ON AFFORDABLE HOUSING SIMILAR TO WHAT THEY HOSTED NAREB AND NAACP IS GOING TO AT THURGOOD THURSDAY AT 6.
SO IF YOU CAN MAKE IT BY, WE'LL MAKE SURE WE INCLUDE THIS AS A PART OF THAT DISCUSSION.
ANY OTHER UPCOMING AGENDA ITEMS? OH, I SEE. I'M SORRY.
COUNCILMAN RIDLEY. REALLY? YEAH.
ON ITEM E, I'M CURIOUS IF THE BASIS UPON WHICH THE UNITED WAY WAS CHOSEN TO ADMINISTER THIS $500,000 BUDGET ALLOCATION, AND IF THEY WERE ANTICIPATED TO DO THIS WHEN THE CITY COUNCIL APPROVED THAT ALLOCATION IN THE BUDGET.
A GOOD QUESTION. THANK YOU FOR THAT, COUNCILMAN.
UNITED WAY IS REALLY ACTING AS A CONDUIT IN THIS AREA.
THIS CONVERSATION STARTED WITH TRUIST BANK ACTUALLY PRIOR TO BUDGET ADOPTION, AND AT THE TIME TRUIST WAS LOOKING TO SEE HOW THEY COULD SUPPORT US IN BUILDING CAPACITY AND TRUIST BANK ALLOCATED FUNDING TO HAVE A SERIES OF CONVERSATIONS WITH OTHER BANKS AND WITH INTERESTED NONPROFITS, NONPROFIT DEVELOPERS THAT COULD UTILIZE THIS SERVICE.
TRUIST BANK IS THE ONE THAT BROUGHT UNITED WAY TO THE TABLE BECAUSE OF THEIR RELATIONSHIP WITH THEM.
WHAT UNITED WAY IS IN AN IDEAL SITUATION FOR IS CARRYING OUT THIS RELATIONSHIP WITH THE THIRD PARTY PARTNERS WHO WILL PROVIDE THE TECHNICAL ASSISTANCE FOR THE DEVELOPERS.
[02:00:05]
SO UNITED WAY ITSELF ISN'T THEY AREN'T EXPERIENCED IN THIS FIELD.THEY'RE, AS YOU DESCRIBE THEM, A CONDUIT.
EXACTLY. SO WHY ARE WE PAYING THEM $100,000 FOR ADMINISTRATION? BECAUSE ADMINISTRATION IS NOT FREE.
SO WHILE UNITED WAY WILL ACT AS A CONDUIT, THERE'S STILL PROCESSING OF APPLICATIONS, THERE'S STILL CONNECTIONS THAT THEY HAVE TO MAKE TO THE THIRD PARTIES THAT ARE GOING TO BE PROVIDING THE SERVICE, WHETHER IT'S UNITED WAY OR THE CITY OF DALLAS, THAT WORK HAS TO BE PAID FOR.
WELL, IT JUST SEEMS LIKE $100,000, 20% OF THE TOTAL ALLOCATION IS A LOT TO PAY TO SOMEONE WHO IS, AS YOU DESCRIBED THEM, MERELY A CONDUIT THAT'S GOING TO BE DOING ADMINISTRATIVE WORK LIKE RECEIVING APPLICATION FORMS. IS THAT NOT SOMETHING THAT CITY STAFF CAN DO? SO IT'S MORE THAN RECEIVING APPLICATION FORMS. THEY'RE WORKING TO DEVELOP APPLICATION FORMS. THEY'RE WORKING TO STRUCTURE RELATIONSHIPS WITH THE THIRD PARTIES.
YOU HAVE TO ACTUALLY STAND IT UP.
AND THIS IS A MULTI YEAR CONTRACT.
SO I EXPECT THEY'RE GOING TO RELY ON SOME OF THOSE MATCHING FUNDS TO CARRY OUT THIS WORK BECAUSE THE TYPICAL PERSON THAT WE WOULD HIRE TO CARRY OUT THIS TYPE OF ADMINISTRATIVE WORK WOULD EARN ABOUT $60,000, IF NOT A LITTLE MORE.
SO WILL YOU COME TO THE COUNCIL TO REQUEST AN ADDITIONAL BUDGET ALLOCATION IN THE COMING BUDGET YEAR? ANOTHER $500,000 FOR THIS PROGRAM? OR WILL THIS BE A? NO, THE 500,000.
SO THIS IS A PILOT PROGRAM TO SEE DOES THIS WORK? AS YOU'VE SEEN, WE WORK WITH MANY OF THE SAME DEVELOPERS AGAIN AND AGAIN AND AGAIN ACROSS OUR PROGRAMS. THIS IS INTENDED TO HELP US CULTIVATE NEW DEVELOPERS.
THE $500,000 IS TO BE SPREAD ACROSS.
WE'RE HOPING IT COULD BE MORE THAN THAT, PARTICULARLY ONCE THEY START LEVERAGING OTHER FUNDS.
WE'RE NOT AT A DOLLAR FOR DOLLAR MATCH YET, BUT IF WE CAN GET THERE, THE $500,000 COULD GROW TO UPWARDS OF A MILLION, WHICH WOULD ALLOW THE PROGRAM TO CONTINUE ON.
SO UNITED WAY WILL BE SEEKING THOSE MATCHING FUNDS.
MAYOR PRO TEM, JUST QUICKLY, YOU KNOW, MR. RIDLEY BROUGHT OUT A POINT AS WELL WHEN YOU TALKED ABOUT A SUB.
I'M JUST TRYING TO READ IT THROUGH THE RESOLUTION.
BUT THE OTHER PIECE I WANT YOU TO ADDRESS IS THE SUBCONTRACTING.
IT NEEDS TO HAVE A PRESCRIPTION FOR DIVERSITY AND INCLUSION.
WHEN THEY'RE LOOKING AT THE SUB, THERE ARE SOME NON PROFITS OF COLOR AND WHO WOULD HAVE THE POTENTIAL TO BE THAT THAT INDIVIDUAL WHO COULD GET OUT AND TRY TO FIND SOME OF THESE FOLKS WHO ARE ELIGIBLE FOR THIS PROGRAM BECAUSE I'M JUST TRYING TO FOLLOW THROUGH.
YOU'RE SAYING THAT UNITED WAY IS GOING TO BE PAID FOR ADMINISTRATION.
AND SO THERE. AND CORRECT ME IF I'M WRONG.
AND SO THEY'RE GOING TO GO OUT TO TRY TO FIND A SUBCONTRACTOR, IS THAT WHAT YOU SAID? SO THE SUBCONTRACTORS ARE THE TECHNICAL EXPERTS THAT WOULD BE TEACHING THE NEW DEVELOPERS, LIKE A CENTER FOR NONPROFIT. WHAT DO THEY CALL IT CENTER FOR NONPROFIT MANAGEMENT, OR AN URBAN LAND INSTITUTE OR INDUSTRY EXPERTS THAT ARE GOING TO BE WORKING DIRECTLY WITH THE DEVELOPERS.
RIGHT. BUT MY POINT IS THIS WHAT I CONTINUE TO SEE IS THE OFTENTIMES THE TREND OF THOSE THAT WE ARE PAYING TO GO OUT AND PAY SOMEONE ELSE.
OFTENTIMES IT'S NEVER YOU DON'T SEE A NUMBER OF DIVERSE FACES ON THE BOARDS.
AND SO THEY IF THEIR BOARDS WERE DIVERSE.
BUT MANY OF THESE BOARDS THAT I'M LOOKING AT STILL ARE SEGREGATED IN A SENSE.
AND SO THE MY CONCERN IS HOW ARE YOU GOING TO GO OUT AND FIND SOMETHING THAT YOU COULDN'T FIND FOR YOUR OWN BOARD? SO YOU'RE GOING TO HAVE TO MAKE SURE BEFORE YOU GET BACK TO COUNCIL THAT YOU HAVE SOMETHING IN THIS PROPOSAL THAT SPEAKS TO DIVERSITY AND INCLUSION AND NOT JUST WHAT WE CONTINUE TO SEE AS A GOOD FAITH EFFORT.
BECAUSE YOU CAN CALL TWO PEOPLE AND SAY, BUT I TRIED.
[02:05:04]
GROUND AND SWEAT AND TEARS TO MAKE SURE THAT AS WE TRY TO REACH OUR HOUSING GOALS, YOU HAVE FOLKS WHO UNDERSTAND DIVERSITY, INCLUSION, INCOME TARGETS AND EVERYTHING ELSE THAT WE TALK ABOUT.SO THAT IS JUST MY COMMENT, MY FEW COMMENTS AFTER HEARING WHAT MR. RIDLEY HAD TO SAY. BUT IF WE GET TO COUNCIL TO VOTE ON IT AND WE HAVEN'T ADDRESSED AND WHAT I CALL DIVERSITY AND INCLUSION, I'M GOING TO HAVE A PROBLEM WITH IT BECAUSE WE'RE JUST GIVING MONEY BACK TO THE GROUP THAT WE NORMALLY GIVE MONEY TO.
SO THEY'RE ABLE TO LIST THEIR PARTICIPATION IN A CITY PROGRAM.
DOES THAT MAKE SENSE? I WOULD SAY THAT'S NOT TRUE.
NO, NO, NO, NO, NO. THAT'S MY OPINION.
ALL RIGHT. THANK YOU. SO YOU CAN KEEP THAT ONE YOURS.
DOES THAT MAKE SENSE? IN MY OPINION. YES.
ALL RIGHT. THANK YOU SO VERY MUCH.
THANK YOU, MR. RIDLEY. THANK YOU, CHAIR.
I MOVE THAT WE MOVE THE UPCOMING AGENDA ITEMS FORWARD WITH NO RECOMMENDATION.
AYE. ALL OPPOSED THE SAME SIGN.
IF THERE'S NOTHING ELSE, I DON'T THINK THERE IS.
IT IS NOW 11:08 AND WE ADJOURN THE MEETING AT THIS TIME.
* This transcript was compiled from uncorrected Closed Captioning.