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[Dallas Housing Finance Corporation on June 13, 2023.]

[00:00:04]

EVERYONE ONLINE, IF YOU CAN GIVE US A HANDS UP, QUICK THUMBS UP IF YOU CAN HEAR US OKAY.

OKAY.

I'M GONNA GO AHEAD AND CALL THE MEETING TO ORDER 1203.

UM, I'M MARCY HAN, PRESIDENT OF THE DALLAS HOUSING FINANCE CORPORATION.

AND I'LL CALL UPON MR. QUINTO, OR SORRY, I'LL CALL UPON MS. SCHRODER TO, UM, DO THE ROLL CALL.

SURE.

UM, DO WE HAVE, UH, DIRECTOR ALLEN PRESENT? UH, DIRECTOR JESSICA DEPA.

LET'S SEE, UH, DIRECTOR CHRISTOPHER LEWIS.

PRESENT, DIRECTOR PRISMA GARCIA HERE PRESENT.

THANK YOU.

UH, DIRECTOR TATIANA FARROW.

HERE.

THANK YOU.

DIRECTOR PATTY COLLINS? YEAH, I GOT, UH, DIRECTOR RYAN GARCIA HERE.

HELLO, UH, DIRECTOR DAVID ELLIS.

PRESENT, UH, PRESENT.

MARCY HILTON, DIRECTOR JOSHUA VERNON.

THANK YOU.

UH, DIRECTOR ANTHONY PAGE PRESENT, AND THEN DIRECTOR BEATRICE MARTINEZ.

THANK YOU.

THANK YOU.

UM, AND NOW I WILL CALL FOR ANY PUBLIC COMMENTS AND ITEMS FOUR THROUGH 15 OF THE AGENDA OF OUR PACKED AGENDA TODAY, .

AND I'LL JUST PAUSE FOR A MOMENT IN CASE THERE ARE ANY PUBLIC COMMENTS.

OKAY.

I DON'T HEAR ANY, SO WE WILL MOVE ON.

ITEM NUMBER FOUR.

OH, BEFORE I GET TO THAT, I, UM, DID WANNA CONGRATULATE ALL OF OUR, UH, INCOMING CITY COUNCIL PERSONS, UM, WHO WILL BE INSTALLED NEXT WEEK.

AND SO, UH, JUST LIKE TO GIVE A CONGRATULATIONS TO ALL OF THEM.

UM, OKAY.

ITEM NUMBER FOUR, APPROVAL OF THE MINUTES FOR THE MAY 9TH, 2023, CITY OF DALLAS HOUSING FINANCE CORPORATION MEETING.

UM, AND I'LL, UM, ENTERTAIN, UH, A MOTION.

SO MOVED.

OKAY.

AND ARE THERE ANY ADDITIONS OR CORRECTIONS TO THE, THE MINUTES? OKAY.

GUESS NO.

UM, SO ALL IN FAVOR SAY AYE.

AYE.

AYE.

AYE.

ANY OPPOSED? OKAY, MINUTES ARE APPROVED.

UH, NEXT ITEM IS TO CONSIDER AN ADOPT A RESOLUTION, APPROVING AN AGREEMENT WITH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, THE T D H C A TO ISSUE BONDS FOR THE PURPOSE OF OBTAINING FUNDS TO FINANCE HOME MORTGAGE LOANS FOR PERSONS OF LOW AND MODERATE INCOME.

AND I'LL TURN IT OVER TO OUR GENERAL MANAGER, MR. QUINTO.

ALL RIGHT.

SO THIS IS KIND OF A REPEAT OF WHAT WE DID LAST, LAST YEAR.

UM, WE AS A HOUSING FINANCE CORPORATION ARE ABLE TO ISSUE BONDS AND ONE TRANCHE OF THESE BONDS OR, OR ONE, UH, PART OF THESE BONDS CAN BE RESERVED FOR SINGLE FAMILY MORTGAGES.

SO THIS IS JUST KIND OF A RE-UP OF THAT SAME RESOLUTION WE DID LAST YEAR.

UM, I THINK THEY'VE REPORTED TO ME THE LAST QUARTER THAT WE'VE DONE A TOTAL OF ABOUT 125 LOANS JUST WITHIN THE CITY OF DALLAS.

UM, SO IT'S A PROGRAM THAT THAT WORKS.

IT'S, IT'S FUNCTIONING AND BEST OF ALL, WE DON'T HAVE TO STAFF IT AND WE DON'T HAVE TO MONITOR IT CUZ T D H D A DOES IT ON OUR BEHALF.

SO THIS IS JUST, UH, PROCEDURAL ON OUR BEHALF, UM, SAYING WE ARE, OR WE'RE GONNA DO THIS AGAIN.

AND, UH, I HOPE YOU GUYS CAN SUPPORT THAT.

ANY QUESTIONS? I HAVE MORE QUESTION.

UM, CAN YOU REMIND ME WHERE THE FUNDS ARE COMING FROM AS WE RE-UP? WE ISSUE BONDS.

IS THAT CURRENT? OKAY.

YEAH.

SO THEY COME FROM THE STATE, THE FUNDS, UH, BUT WE ISSUE THAT, BUT WE'RE THE ISSUER RIGHT.

OF THE BOND.

RIGHT.

SO RYAN'S MORE TECHNICALLY VERSED ON THIS.

YEAH.

THE STATE WILL ISSUE BONDS, UM, THAT WILL BE USED TO ACQUIRE THE MORTGAGE IS WHAT, UM, IS DONE FOR THE PROGRAM, IS

[00:05:01]

THE HOUSING FINANCE CORPORATION IS ACCESSING VOLUME CAP THAT IT CAN THEN ASSIGN TO, UM, THE STATE.

SO THEY CAN IN FACT ISSUE THOSE BONDS.

THEY NEED ISSUING, UH, AUTHORITY TO DO THAT.

AND THE HFC HAS A POOL OF MONEY THAT IT CAN APPLY FOR, OBTAIN AND ASSIGN.

DO WE KNOW WHAT, WHAT, HOW DO WE ARRIVE AT THE 61 MILLION AS OPPOSED TO ANOTHER NUMBER? CLAIRE, HOW, HOW DO WE ARRIVE AT THAT NUMBER? IT'S BASED OFF OF, EXCUSE ME.

HI, CLAIRE WITH HILLTOP, UM, UH, THE MAXIMUM AMOUNT THAT AN H F C CAN APPLY FOR IS UP TO I BELIEVE SIX.

I I WHAT ARE THE TERMS TYPICALLY? THAT THE, EXCUSE ME.

THANK YOU.

UM, IT'S DEPENDENT UPON, UM, WHAT THE MARKET IS CURRENTLY WHENEVER T D H C A GOES OUT AND DOES A BOND SALE.

UM, SO THEY ACTUALLY JUST DID ONE, UH, FOR 250 MILLION, UM, I BELIEVE LAST WEEK.

AND, UM, THE TERMS ARE, THE RATES THAT THEY'RE PROVIDED, UM, ARE BASED OFF OF, IF THERE IS ADDITIONAL ASSISTANCE.

SO UNASSISTED I BELIEVE WAS 5.75% ON THE FIRST LIEN.

UM, AND THEN THAT, UH, GOES UP INCREMENTALLY BY ABOUT 25 TO 50 BASIS POINTS.

UM, ADDING ON ADDITIONAL POINTS OF DOWN PAYMENT ASSISTANCE OR CLOSING COSTS FOR, UM, A SECOND LIEN.

AND IT'S EITHER, UM, REPAYABLE WITHIN, UM, A 30 YEAR PERIOD, UM, OR DUE UPON SALE OR REFINANCE, UM, OR IT'S BE FORGIVEN.

IT CAN BE FORGIVEN, UM, AFTER THREE YEARS.

BUT THAT ALL, THERE ARE DIFFERENT INTEREST RATE LEVELS, UM, BASED UPON, BUT DEFINITELY IS BELOW MARKET COMPARED TO, UM, WHERE INTEREST RATES ARE RIGHT NOW.

OKAY, THANK YOU.

CAN YOU TELL ME HOW THIS, UH, PROGRAM IS PUBLICIZED TO PROSPECTIVE, UH, APPLICANTS? SO T D H D A HAS, UM, THEY WORK WITH A VAST AMOUNT OF LENDERS ACROSS THE STATE OF TEXAS.

UM, MANY LENDERS ARE VERY AWARE OF THIS PROGRAM AND THEY ALSO HAVE A MARKETING PROGRAM.

UM, THEY ACTUALLY HAVE RECENTLY, THEY'RE, THEY'RE, THEY'RE RECENTLY GOING TO, OR THEY'RE ABOUT TO, UM, HIRE ADDITIONAL STAFF TO FULLY FOCUS ON, UM, THE LOCAL A HOUSING FINANCE CORPORATION, UM, ASSIGNMENT PROGRAM, UM, TO HELP, UM, THAT OUTREACH AND GET MARKETING ACROSS THE TABLE.

UM, ESPECIALLY WITH, UM, REALTORS, BROKERS, UM, CONSTRUCTION, UH, COMPANIES, UM, AND DEFINITELY WITH LENDERS AS WELL, BUT THEY HAVE A WHOLE TEAM OF MARKETING THAT CAN GO OUT AND HAVE FLYERS.

UM, IF SO, IF THERE IS, UH, YOU KNOW, LENDERS OR REALTORS THAT YOU ALL WANT TO MARKET TO OR PUT THIS ON YOUR WEBSITE, I'M NOT SURE IF THIS PROGRAM IS LISTED ON THE WEBSITE OR NOT.

UM, BUT THEY HAVE MANY FLYERS THAT WE CAN PROVIDE YOU ALL WITH THAT CAN BE GIVEN TO, UM, ACTUAL RESIDENCES, UM, OR TO, UM, THE LENDERS.

OKAY.

AND SO CAN YOU JUST, UM, GIVE AN EXAMPLE, LET'S JUST SAY FOR SIMPLICITY'S SAKE THAT YOU'VE GOT YOUR PURCHASING A HOME THAT'S A HUNDRED THOUSAND DOLLARS HOME.

CAN YOU KIND OF, YOU KNOW, WALK THROUGH THE HYPOTHETICALS KIND OF, UH, WHAT THE CAPITAL STACK IS FIRST MORE HOW THIS, HOW THIS PLAYS IN, WHAT THE INTEREST RATE IS AND HOW MUCH EQUITY A PERSPECTIVE, UH, HOME PURCHASER HAS TO PUT UP? UH, IT'S TYPICAL 20% DOWN.

UM, I KNOW THAT IT'S, UH, THERE ARE DIFFERENT NUMBER OF, UM, UH, AVENUES, YOU KNOW, F HHA, VA, UM, BUT THE, THE LENDER ACTUALLY GOES THROUGH AND DOES ALL THAT COMPLIANCE WORK, UM, ALL THAT REPORTING.

SO, YOU KNOW, CITY OF DALLAS, H F C DOESN'T HAVE TO DO ANY OF THAT, UM, KIND OF LEGWORK, BUT THEY GO THROUGH AND, UM, YOU KNOW, REVIEW ALL OF THE DOCUMENTS, REVIEW ALL OF THE PAPERWORK.

UM, AND WITH THIS PROGRAM, UM, THERE IS A CERTAIN, UM, AAMI LIMIT THAT, UM, THE BORROWER IS ALLOWED TO PARTICIPATE IN.

UM, IT'S UP TO, I BELIEVE 115% OF THE AREA MEETING INCOME

[00:10:01]

FOR THREE PERSONS OR MORE.

UM, AND THERE'S ALSO A PURCHASE PRICE LIMIT OF, I BELIEVE IT'S CLOSE TO 400,000.

YEAH, I THINK IT'S LIKE 3 70, 3 70, BUT IT MIGHT BE NEW NUMBERS JUST CAME OUT, SO THEY DID JUST COME OUT.

RIGHT.

AND SO THE BENEFIT, UM, I APOLOGIZE, YOU MIGHT HAVE, YOU PROBABLY ALREADY COVERED THIS.

SO WHAT IS THE BENEFIT THEY GET IS IT'S A LOWER INTEREST RATE OR IS IT CORRECT, IT'S BELOW MARKET, UM, INTEREST RATES WITH UP TO FIVE POINTS OF, UM, ASSISTANCE AS A SECOND LIEN.

UM, EITHER THAT CAN COVER DOWN PAYMENT ASSISTANCE OR CLOSING COSTS.

OKAY, SO BY FIVE POINTS YOU MEAN, SO INSTEAD OF HAVING TO PUT 20% DOWN, IS 15% FIVE? YEAH, 5% OF THE TOTAL LOAN, UM, AMOUNT UP TO 5% OF THE TOTAL LOAN AMOUNT.

OKAY, GOT IT.

SO 5% OF THE, UM, 80%, SO RIGHT.

ALL RIGHT.

AND, UM, OKAY.

AND SO THEN WITH HIS LOWER INTEREST RATE, THEN, BECAUSE THEY HAVE A LOWER INTEREST RATE, WHEN YOU'RE GOING AND DOING THE UNDERWRITING, THEY'RE ABLE TO WITH A LOWER INCOME BECAUSE THE PAYMENT IS LOWER, YOU'RE ABLE, THAT'S WHAT ENABLES 'EM TO QUALIFIES THAT YES.

FOR, FOR A MORE EXPENSIVE HOME OR CORRECT.

AND THE I C O SCORE, UM, I BELIEVE THE, THE MINIMUM F I O SCORE IS SIX 20 AS WELL.

OKAY.

RIGHT.

THANK YOU.

YEAH.

MM-HMM.

, RIGHT? MM-HMM.

.

THANKS PETE.

UH, WE DEFINITELY, UH, HEAR YOUR CONCERNS.

WE'LL, WE'LL TAKE THAT TO T D H D A BECAUSE THEIR TEAM HAS A, I MEAN, I, I THINK THEY'VE SET UP A NEW TEAM TO KIND OF HANDLE A LOT OF THESE THINGS AND, UH, WE HAVE HAD PRELIMINARY MEETINGS WITH PEOPLE THAT WILL BE MARKETING THIS, SO WE, WE WILL TALK OFFLINE.

MAYBE WE GET SOME MORE INPUT FROM YOU ON THIS, BUT RIGHT.

I, I WOULD ADD, I'M LOOKING HERE AT THE NUMBERS.

SO THEY DID USE ALL OF THE VOLUME CAP, SO EVERYTHING THAT WE WERE ABLE TO OFFER THAT HAS BEEN EXPENDED.

SO, UM, THAT MIGHT GIVE SOME COMFORT, EVEN THOUGH NOT EVERYONE KNOWS IT IS BEING USED UP TO THE MAXIMUM, UH, THAT IS ABLE.

SO I WANT, I'D LIKE TO A SECOND, UM, DIRECTOR MARTINEZ CONCERN.

THE REASON I'M ASKING SO MANY QUESTIONS ABOUT THIS IS, COINCIDENTALLY, EARLIER THIS WEEK I WAS AT A RESIDENTIAL BROKERAGE FIRM THAT, UH, UH, WE WERE, A LARGE PART OF THEIR CLIENTELE IS IN SOUTHERN DALLAS.

UM, LOW AND MODERATE INCOME, UH, PEOPLE, THEY WERE EXACTLY WHO YOU KNOW, WOULD BE PERFECT, I THINK, FOR THIS PROGRAM.

AND THEY DIDN'T KNOW, UM, THEY SAID THEY'D HEARD SOMETHING, BUT THEY DIDN'T HAVE ANY INFORMATION ON IT.

THEY DIDN'T KNOW ANYTHING ABOUT IT.

AND SO I THINK, YOU KNOW, WE NEED TO DO A BETTER JOB OF, OF OUTREACH TO THE BROKERAGE COMMUNITY.

AND THIS WAS A MAJOR, UH, MAJOR RESIDENTIAL BROKERAGE FIRM THAT DOES A LOT OF, A LOT OF BUSINESS IN SOUTHERN DALLAS.

AND, UM, THEY, THEY WERE UNFAMILIAR WITH THIS PROGRAM.

YEAH.

THIS IS ONE LAST QUESTION.

UM, OBVIOUSLY THIS, UH, IS INCOME RESTRICTED.

UM, SO APPLY, ARE THERE ANY LIKE E RESTRICTIONS ON THE PROPERTIES WHEN THEY APPLY AND GET ACCEPTED FOR THE FUNDING? IS IT ANYTHING ALONG THOSE LINES WHEN THEY GET ACCEPT, WHEN THEY ACCEPT THOSE, THAT AMOUNT OF FUNDS, WHATEVER, FOR EXAMPLE, THE PROPERTY, IF THEY SELL IT WITHIN THREE YEARS, YOU KNOW, THEY HAVE TO LIKE PAY BACK THE LOAN OR AFTER LIKE 10 YEARS, YOU KNOW, THE DEED RESTRICTION ON THE PROPERTY IS LIFTED.

IS THERE ANY SIMULATIONS ON THAT IN REGARDS TO THIS PROGRAM? I DON'T BELIEVE SO.

I DON'T, I DON'T BELIEVE SO.

NO.

YOU MENTIONED THAT THERE WAS A THREE YEAR TIME PERIOD THAT WE HAD TO DEPLOY.

SO HYPOTHETICALLY SPEAKING, LET'S SAY FOR INSTANCE, WE GET VERY AGGRESSIVE AND WE DEPLOY ALL 61 MILLION THAT WE, AND THAT WE APPROVE THIS YEAR.

WHEN CAN WE APPROACH TD HCA ABOUT ADDITIONAL FUNDS, ADDITIONAL FUNDS? SO, UM, IT'S ON AN ANNUAL BASIS.

AND SO WE WILL, IF YOU ALL APPROVE THIS, THEN WE WILL GO THROUGH THE NEXT STEP IS, UM, T D H C A WILL, AT THEIR

[00:15:01]

JULY MEETING, THEIR JULY 6TH MEETING, UM, THEY WILL APPROVE AN ASSIGNMENT AGREEMENT THAT'S BETWEEN T D H C A AND THE H F C, UM, BASICALLY STATING THAT THE H HFC WILL, UM, ASSIGN THEIR VOLUME CAP, UM, OVER TO T D H C A TO ORIGINATE THESE LOANS ON THEIR, ON THE HFCS BEHALF.

UM, AND THEN ONCE THAT IS DONE, WE WILL PROVIDE TO THE BOND REVIEW BOARD AND WORK WITH, UM, YOUR COUNSEL TO PUT IT TOGETHER A BOND REVIEW BOARD APPLICATION TO APPLY FOR THAT VOLUME CAP OF THAT 61 MILLION.

UM, AND WE'LL TAKE THE RESOLUTIONS THAT WERE PASSED HERE ALONG WITH THE ASSIGNMENT AGREEMENT, UM, TO THE BOND REVIEW BOARD AND APPLY FOR THAT VOLUME CAP.

AND THAT WILL OCCUR BETWEEN JULY 15TH AND, UM, AUGUST 7TH.

UM, AND THEN WHAT, ONCE THAT IS DONE, T D H C A WILL TAKE CARE OF, UM, ANY ADDITIONAL FEES WITH THE BOND REVIEW BOARD AND STATE THE ONLY FEES THAT, UM, THE H F C IS OUT OF POCKET FOR IS JUST $500 FOR, UM, PUTTING TOGETHER TO PAY FOR, UM, THE BOND REVIEW BOARD APPLICATION.

UM, AND SO IT'S DONE ON AN ANNUAL BASIS, UM, ONLY APPLIED BETWEEN THAT JULY 15TH AND AUGUST 7TH PERIOD.

SO, UM, WE WANNA COME BACK AND IF THIS IS A SUCCESSFUL PROGRAM AGAIN, UM, WE WOULD DO SORT OF THE SAME THING AROUND THIS TIME PERIOD.

SO THAT'S WHAT, THAT'S WHAT OUR HOPE IS IS LAST YEAR IT WAS 25 MILLION.

IT'S BEEN SUPER SUCCESSFUL.

I'VE ALREADY USED ALL THE VOLUME CAP THIS YEAR, BUMPING IT ALL THE WAY UP TO 61 MILLION.

SO HOPEFULLY THIS WILL CARRY US OVER FOR AN ENTIRE YEAR.

AND THIS GEORGE RODRIGUEZ, ONE THING I'D LIKE TO MENTION IS THAT PART OF THIS CONVERSATION ACTUALLY RELATES TO AGENDA ITEM SIX.

I WAS JUST GONNA SAY THAT, IS IT BEST TO COMBINE THOSE? YEAH, I, I THINK WE HAD CONTEMPLATED, UH, VOTING ON THESE TOGETHER.

OKAY.

SO I'M GONNA GO AHEAD AND READ OFF ITEM SIX.

CONSIDER AN ADOPT A RESOLUTION APPROVING AN APPLICATION TO THE TEXAS BOND REVIEW BOARD FOR A SINGLE FAMILY PRIVATE ACTIVITY BOND ALLOCATION IN AN AMOUNT UP TO 61 MILLION IN APPROVING ALL OTHER MATTERS IN CONNECTION THEREWITH.

SO I GUESS I WOULD ENTERTAIN IF SOMEBODY WANTS TO MAKE A MOTION TO, TO APPROVE ITEMS FIVE AND SIX.

SO MOVED.

SIX.

OKAY.

JUST MAKING A NOTE.

UM, OKAY, SO, UH, SO I'LL GO DOWN THE LIST.

UH, DIRECTOR ALLEN IN AGREEMENT.

DIRECTOR DEPA.

OH, SHE'S NOT, IS SHE HERE? NO, SHE'S NOT HERE.

UH, DIRECTOR LEWIS.

DIRECTOR GARCIA PRISMA GARCIA.

YES.

YES.

PRISMA.

THANK YOU.

DIRECTOR FARROW? YES.

UH, DIRECTOR COLLINS? YES.

UH, OKAY.

DIRECTOR COLLINS, I THINK YOU JUST UNMUTED.

THANK YOU.

VICE PRESIDENT GARCIA, APPROVE.

DIRECTOR ELLIS APPROVE.

I APPROVE DIRECTOR VERNON.

I APPROVE.

UM, SECRETARY PAGE, APPROVE AND TREASURER MARTINEZ.

THANK YOU.

OKAY.

ALL RIGHT.

ANTA, ITEM SEVEN.

UH, UH, I'LL JUST PREFACE THIS BY SAYING THAT, UM, THERE ARE REQUIREMENTS THAT WE HAVE PUBLIC HEARINGS FOR CERTAIN THINGS THAT WE DO.

AND, UH, SO ITEMS SEVEN THROUGH 10 ARE TO BE DOING THOSE PUBLIC HEARINGS.

UM, SO THE FIRST PUBLIC HEARING IS A PUBLIC HEARING PURSUANT TO SECTION 3 94 0.9025 A OF THE TEXAS LOCAL GOVERNMENT CO CODE ON POSSIBLE ISSUANCE OF BONDS BY THE CITY OF DALLAS HOUSING FINANCE CORPORATION TO FINANCE THE ACQUISITION OF DOMAIN AT MIDTOWN PARK, A 395 UNIT MULTI-FAMILY RESIDENTIAL DEVELOPMENT, LOCATED AT 81 69 MIDTOWN BOULEVARD, DALLAS, TEXAS 75 23, TEXAS LIMITED LIABILITY COMPANY, OF WHICH THE CITY OF DALLAS HOUSING FINANCE CORPORATION IS THE SOLE MEMBER.

SO I WILL NOW OPEN THE FLOOR, UM, IF THERE ARE ANY PUBLIC COMMENTS.

OKAY, HEARING NONE.

I'LL GO ON TO ITEM EIGHT.

A PUBLIC HEARING PURSUANT TO SECTION 3 94 0.9025 A OF THE TEXAS LOCAL GOVERNMENT CODE ON POSSIBLE ISSUANCE OF BONDS BY THE CITY

[00:20:01]

OF DALLAS HOUSING FINANCE CORPORATION TO FINANCE THE ACQUISITION OF FITZ U URBAN FLATS, A 452 UNIT MULTI-FAMILY RESIDENTIAL DEVELOPMENT, LOCATED AT 27 0 7 NORTH FITSU AVENUE, DALLAS, TEXAS 75,204 BY D H F C, FITSU URBAN FLATS, L L C A, TEXAS LIMITED LIABILITY COMPANY, OF WHICH THE CITY OF DALLAS HOUSING FINANCE CORPORATION IS THE SOLE MEMBER.

I WILL NOW OPEN THE FLOOR TO ANY PUBLIC COMMENTS.

OKAY, MOVING ON TO ITEM NINE.

I HEARD NO COMMENTS.

ITEM NINE, PUBLIC HEARING PURSUANT TO SECTION 3 94 0.9025 A OF THE TEXAS LOCAL GOVERNMENT CODE ON POSSIBLE POSSIBLE ISSUANCE OF BONDS BY THE CITY OF DALLAS HOUSING FINANCE CORPORATION TO FINANCE THE ACQUISITION OF AXIS KESSLER PARK, A 299 UNIT MULTI-FAMILY RESIDENTIAL DEVELOPMENT, LOCATED AT 2,400 FORT WORTH AVENUE, DALLAS, TEXAS, 75,211 AXIS.

KESSLER PARK BY D H F C AXIS KESSLER PARK, L L C A, TEXAS LIMITED LIABILITY COMPANY, OF WHICH THE CITY OF DALLAS HOUSING FINANCE CORPORATION IS THE SOLE MEMBER.

I WILL NOW OPEN THE FLOOR TO ANY PUBLIC COMMENT.

HEARING NONE, I WILL CLOSE THAT PUBLIC COMMENT AND MOVE ON TO ITEM ITEM NUMBER 10, PUBLIC HEARING PURSUANT TO SECTION 3 94 0.9025 A OF THE TEXAS LOCAL GOVERNMENT CODE ON POSSIBLE ISSUANCE OF BONDS BY THE CITY OF DALLAS HOUSING FINANCE CORPORATION TO FINANCE THE ACQUISITION OFM AT MIDTOWN, A 289 UNIT MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 1 3 6 75 NOEL ROAD, DALLAS, TEXAS 75,002 40 NEWS AT MIDTOWN BY D H F C NEWS AT MIDTOWN, L L C A TEXAS LIMITED LIABILITY COMPANY, OF WHICH THE CITY OF DALLAS HOUSING FINANCE CORPORATION IS THE SOLE MEMBER.

I'LL OPEN THE PUBLIC HEARING ON THAT ITEM AND ASK IF THERE ARE ANY PUBLIC COMMENTS.

HEARING NONE, I WILL CLOSE THE MEETING, UM, BECAUSE THERE HAVE BEEN NO PUBLIC COMMENTS.

UM, NOW WE'RE ON TO ITEM NUMBER 11.

CONSIDER AND ADOPT A BOND RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION, RESIDENTIAL DEVELOPMENT REVENUE BONDS SERIES 2023 DOMAIN AT MIDTOWN PARK.

UM, SO, UH, GENERAL MANAGER E QUINTO.

YEAH.

UM, SO REAL QUICK, WE ALREADY APPROVED THIS AT OUR LAST MEETING.

I BELIEVE WE ALREADY SAW THE DOCUMENTS, BUT, UM, JUST DUE TO CHANGES IN THE MARKET AND THE FINANCING, WE HAD TO EXTEND THE MATURITY DATE FROM 40 YEARS OUT, THE 45 YEARS SO THAT WE'RE, WE'RE ABLE TO MAKE THIS WORK WITH ALL THE RATES.

UM, SO THIS RESOLUTION CONTEMPLATES THIS, AND THAT'S REALLY THE MAJOR CHANGE THERE.

ANY QUESTIONS? OKAY.

QUIET GROUP ON THIS ONE.

, I'LL MOVE TO APPROVE.

OKAY.

VERY GOOD.

.

THANK YOU.

I'LL SECOND.

OKAY.

OKAY, SO I'LL GO DOWN THE LIST.

UM, DIRECTOR ALLEN APPROVED, UH, DIRECTOR LEWIS.

APPROVED DIRECTOR GARCIA PRISMA APPROVED DIRECTOR PHARAOH, DIRECTOR COLLINS, WE LOSE DIRECTOR COLLINS.

I'LL COME BACK.

UM, VICE PRESIDENT GARCIA, APPROVE.

DIRECTOR ELLIS APPROVE.

I APPROVE.

RIGHT? HAD TO RUN AND GET THE DOOR.

.

YEAH.

DR.

COLLINS, WHAT'S YOUR VOTE? APPROVE.

THANK YOU.

UM, DIRECTOR VERNON? YES.

UM, SECRETARY PAGE APPROVED AND TREASURER MARTINEZ.

RIGHT.

OKAY.

ZIPPING RIGHT ALONG.

WE'RE ON ITEM NUMBER 12, AND THIS ONE IS FOR THE SAME REASON AS THE ONE WE JUST DID CONSIDER AN ADOPT A BOND RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION, RESIDENTIAL DEVELOPMENT REVENUE BONDS SERIES 2023, FITSU URBAN FLATS.

LIKE I SAID, IT'S THE SAME, UH, SAME REASON WE ALREADY PROVED THIS, BUT WE NEED TO EXTEND THE MATURITY DATE OUT FOR 45 YEARS.

MAKE AND, AND YEAH, I GUESS I'LL POINT OUT ALSO THAT, UM, THAT'S A MAXIMUM OF 45 YEARS IF YOU LOOKED AT YOUR PROFORMAS.

UH, WE ARE, UM, HOPING THAT IT WILL BE LESS THAN THAT, BUT WE NEED TO GIVE OURSELVES THE WIGGLE ROOM JUST IN CASE.

[00:25:01]

OKAY.

UM, DO I HEAR A MOTION? MOTION TO APPROVE.

SECOND ROLLING.

AND GARCIA.

OKAY.

UM, DIRECTOR ALLEN APPROVE.

UH, DIRECTOR LEWIS.

DIRECTOR GARCIA? YES.

ISMA? YES.

THANK YOU.

DIRECTOR APPROVE.

DIRECTOR COLLINS.

DIRECTOR COLLINS? PARDON? OH, APPROVE.

ARE YOU ON MUTING? APPROVE? THANK YOU.

THANK YOU.

VICE PRESIDENT GARCIA, APPROVE.

DIRECTOR ELLIS ICUS.

OKAY.

UM, I'M IN FAVOR, DIRECTOR VERNON.

IN FAVOR, SECRETARY PAGE APPROVED AND TREASURER MARTINEZ.

OKAY.

UM, NOW WE'RE ON TO, UH, I JUST WANNA SAY BEFORE WE GET TO THESE NEXT SET OF RESOLUTIONS, WHICH I'M PLEASED THAT WE'RE ZIPPING ALONG, UM, I JUST WANT TO SAY THAT, UM, ANY OF YOU WHO HAVE BEEN ON HERE FOR A WHILE KNOW THAT, UH, THERE HAD BEEN PERIODS OF TIME WHERE WE DIDN'T HAVE A WHOLE LOT OF THINGS, UH, GOING ON, BUT, UH, THIS TIME WE'VE BEEN VERY, VERY BUSY.

AND I JUST WANNA THANK, UH, OUR BOND COUNCIL, BRACEWELL, OUR ATTORNEYS, CHAPMAN AND CUTLER, UM, OUR CITY OF DALLAS STAFF, UM, AND, UH, OUR, UM, FINANCIAL ADVISORS, HILLTOP, UM, EVERYONE, YOU KNOW, , BY THE TIME THIS GETS TO THIS BOARD, MANY, MANY, MANY HOURS OF TIME.

UM, ALSO, I GUESS OUR SPONSORS, UH, O H G IS HERE TODAY AND, UM, AND DEVCO IS HERE TODAY.

UH, AND THEN WATERFORD IS THE OTHER SPONSOR THAT, UM, OR SPONSOR SLASH DEVELOPER.

AND I, I JUST WANNA THANK EVERYONE BECAUSE IT TOOK A LOT, A LOT OF EFFORT AND, UH, TO BRING THESE HERE TO YOU TODAY, AND I'M VERY EXCITED.

UM, OKAY.

I WANNA THANK MARCIE FOR PUTTING A TON OF EFFORT INTO IT.

UH, SHE, SHE VOLUNTEERS HER TIME, VOLUNTEERS HER TIME.

WE DO APPRECIATE HILLTOP BOND COUNCIL SPONSORS, EVERYBODY.

YOU DO GET PAID AT THESE CLOSE, WHICH IS NICE.

MARCY DOES NOT.

SO LET'S ALSO KEEP THAT IN MIND.

AND WHAT WE'RE DOING IS REALLY IMPORTANT FOR THE CITY OF DALLAS.

SO THANK YOU MARCY, FOR WORKING SO HARD ON US.

THANK YOU.

THANK.

OKAY.

ONTO ITEM 13 RESOLUTIONS FOR MUSE AT MIDTOWN, A MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 13 6 75 NOEL ROAD.

ITEM A, CONSIDER AN ADOPT A BOND RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION RESIDENTIAL DEVELOPMENT REVENUE BONDS SERIES 2023, MUSE AT MIDTOWN, AND CONSIDER AN ADOPT A RESOLUTION AS SOLE MEMBER OF THE PROJECT OWNER APPROVING THE FORM AND SUBSTANCE OF AND AUTHORIZING THE EX EXECUTION AND DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING OF MUSE AT MIDTOWN AND CONTAINING OTHER PROVISIONS RELATING TO SUCH DEVELOPMENT.

ARE THERE ANY QUESTIONS? OKAY.

WE'VE BEEN WORKING ON THESE FOR A WHILE, SO I THINK WE, HOPEFULLY WE'VE GOTTEN OUR QUESTIONS ANSWERED.

UM, SO I WILL ENTERTAIN A MOTION ITEM 13.

SO MOVE.

OKAY.

AND SECOND.

SECOND.

OKAY.

ALL RIGHT.

DIRECTOR ALLEN APPROVE.

UH, DIRECTOR LEWIS.

DIRECTOR GARCIA, YES.

APPROVE PRISMA? YES.

THANK YOU.

DIRECTOR PHARAOH, APPROVE.

DIRECTOR COLLINS APPROVE.

THANK YOU.

VICE PRESIDENT GARCIA, APPROVE.

DIRECTOR ELLIS, UH, IRA HUG.

OKAY, I APPROVE.

UH, DIRECTOR VERNON.

I APPROVE SECRETARY PAGE APPROVE.

AND TREASURER MARTINEZ.

UH, ALL RIGHT.

OKAY, NEXT ITEM NUMBER 14, RESOLUTIONS FOR ACCESS.

KESSLER PARK, A MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 2,400 FORT WORTH AVENUE.

A.

CONSIDER AND ADOPT A BOND RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION RESIDENTIAL DEVELOPMENT, REV REVENUE BONDS SERIES 2023 AXIS

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KESSLER PARK, AND B, CONSIDER AN ADOPT A RESOLUTION AS SOLE MEMBER OF THE PROJECT OWNER APPROVING THE FORM AND SUBSTANCE OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING OF AXIS KESSLER PARK, AND CONTAINING OTHER PROVISIONS RELATING TO SUCH DEVELOPMENT.

UM, ANY QUESTIONS ON ACCESS? KESSLER PARK? OKAY, I WILL, I'LL PRETTY HEEN.

I'M SORRY.

I HAVE ONE QUESTION.

SO I'M SEEING HERE THAT, UM, THE CURRENT RESIDENTS ARE PAYING AT LEAST, UM, OR AT THE 80% E M I, THEY'RE CURRENTLY PAYING MARKET RENTS.

SO ARE THEY GONNA CONTINUE TO BE PAYING 80, UM, MARKET RENTS? I SEE THAT, YOU KNOW, IT'S GONNA BE RESERVED FOR RESIDENTS AT LEAST UP TO 140% A M I.

SO THEY BENEFIT ANY REDUCTION IN RENT AT SOME POINT.

YEAH.

SO THE PROGRAM WORKS.

THEY WON'T KICK OUT ANYBODY THAT MAKES OVER THAT.

AND IF YOU DO QUALIFY FOR THE REDUCED RENTS THAT BASED ON YOUR INCOME, UM, I THINK AT YOUR LEAST RENEWAL, YOU WILL BE ABLE TO, UH, APPLY AND RECEIVE THAT, THAT DISCOUNTED RENT, WHICH, AND, UM, THOSE RENTS ARE DETERMINED, UM, BY, THERE'S A NOVO GRAD, SOMEBODY GIMME THE RIGHT TERMINOLOGY HERE, NO NOVO GRAD, SOMETHING OR OTHER, WHERE THEY DETERMINE, UM, BASED ON, I GUESS THAT 30% STANDARD, RIGHT? WHAT THE RENT THE STANDARD IS.

YEAH.

AT WHATEVER INCOME LEVEL YOU'RE AT, AT THE 80%, 60, WHATEVER WE'RE LIMITING IT TO YOUR RENT SHOULD BE NO MORE THAN 30% OF THAT INCOME BASED ON YOUR FAMILY SIZE AND WHATNOT.

SO I, YOU KNOW, I THINK THAT'S WHAT YOU WERE ASKING, IS THAT IF THAT WILL THEIR RENTS GET LOWERED AND, AND WHY WILL THAT HAPPEN? AND IT WILL BE ACCORDING TO THAT NOVARE, UH, LIST.

UM, ANY OTHER QUESTIONS ON AXIS? OKAY.

I WILL ENTERTAIN A MOTION.

I, I AM MOVED TO APPROVE.

THANK YOU.

SECOND, AND, OKAY.

ALL RIGHT.

UM, DIRECTOR ALLEN, NOT IN FAVOR.

WHAT NOT? NO.

OKAY, GOTCHA.

JUST WANTED TO MAKE SURE.

UH, DIRECTOR LEWIS, UH, DIRECTOR GARCIA, UH, APPROVE DIRECTOR FARROW APPROVE.

DIRECTOR COLLINS APPROVE.

UH, VICE PRESIDENT GARCIA APPROVE.

DIRECTOR ELLIS APPROVE.

I APPROVE DIRECTOR VERNON.

I APPROVE.

UM, SECRETARY PAGE, APPROVE, AND TREASURER MARTINEZ.

OKAY.

UH, THE NEXT ONE IS CONCERNING ASH CREEK.

AND I WANNA, UH, POINT OUT ON ASH CREEK THAT, UM, THIS IS OUR FIRST, UH, ONE, BUT YOU KNOW, WE HAVE OTHERS COMING DOWN THE PIKE, UM, WHERE THERE WAS A SELLER, UH, NOTE INVOLVED.

AND, UM, SO WE, UH, I, I WANT TO, AGAIN, THANK HILLTOP, UH, FINANCIAL, WHICH, UM, YOU KNOW, WE NEEDED TO FIGURE OUT HOW THIS DIFFERED FROM, UH, THOSE THAT WE'VE DONE IN THE PAST WHERE THERE HAS NOT BEEN A SELLER NOTE, AND, UH, HOW THE REPAYMENT OF THAT NOTE SHOULD COORDINATE WITH THE, UM, WE ALWAYS ON THESE DEALS, AS YOU KNOW, WE, UH, GET A PERCENTAGE OF THE, UM, DEVELOPMENT FEE, AND WE GET A PERCENTAGE OF CASH FLOW, AND WE GET A PERCENTAGE OF, UH, DISPOSITION PROCEEDS.

UM, SO WITH THE SELLER NOTE INVOLVED, UH, IT MADE THOSE PERCENTAGE, WE WANTED TO MAKE SURE THAT, UM, WHAT WE HAD ATTEMPTED TO ACHIEVE BY REQUESTING THOSE PERCENTAGES OF PARTICIPATION, UM, WOULD STILL BE ACHIEVED.

SO, UM, I WANT TO THANK, UH, DEVCO ALSO FOR WORKING WITH US AND WITH HILLTOP, UM, TO, UH, HAVE THE DOCUMENTS BE DRAFTED IN SUCH A WAY THAT, UH, THAT WE CAN TRY TO MAINTAIN, UH, THAT GOAL THAT, UM, THAT WE ORIGINALLY APPROVED.

UM, SO, UH, SO I'LL GO AHEAD AND READ THE RESOLUTION AND THEN IF ANYBODY HAS ANY QUESTIONS.

UM, SO THIS IS ITEM 15 RESOLUTIONS FOR ROSEMONT AT ASH CREEK APARTMENTS, A MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 26 0 5 JOHN WEST ROAD, DALLAS, TEXAS, 75,000 2 28 ROSEMONT AT ASH CREEK.

A CONSIDER AND ADOPT A BOND RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION, MULTIFAMILY HOUSING REVENUE BONDS,

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ROSEMONT AT ASH CREEK APARTMENTS SERIES 2023.

AND B, CONSIDER AND ADOPT A PART PARTNERSHIP RESOLUTIONS APPROVING THE FORM AND SUBSTANCE OF, AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING AND REHABILITATION OF ROSEMONT AT ASH CREEK, AND CONTAINING OTHER PROVISIONS RELATING TO SUCH DEVELOPMENT.

AND, OH, I, I, I WANTED TO MENTION SOMETHING ELSE THAT I THINK IS REALLY IMPORTANT, AND THAT IS THAT, UM, THAT THE DEVELOPER, UH, OVER THE COURSE OF, UH, GETTING US TO TODAY, UM, ALSO ADDED, UH, MORE IMPROVEMENTS TO THE PROPERTY.

AND SO I JUST WANTED TO SAY THAT I THINK THAT THAT'S ALSO GREAT.

I THINK, UH, THEY ADDED, UM, PUTTING IN A LOT MORE NEW APPLIANCES.

I DON'T KNOW IF DEVCO WANTS TO, UM, SPEAK TO SOME OF THE THINGS, UM, THAT THEY ADDED, UH, BECAUSE, UH, THIS IS A, AN EXISTING PROPERTY THAT NEEDED A LOT OF UPGRADING TO, UM, MAKE IT A, UH, YOU KNOW, THE BEST PLACE POSSIBLE FOR ITS TENANTS.

AND, UM, SO I DON'T KNOW IF YOU WANNA, IF DEVCO WANTS TO MAYBE, UM, TELL THE BOARD ABOUT WHAT'S, WHAT WAS ADDED.

THANK YOU.

WE, UH, APPRECIATE THE FACT THAT, UM, THAT THIS IS GONNA BE A, A VERY SIGNIFICANTLY UPGRADED PROPERTY.

UM, OKAY.

UH, I READ THROUGH THIS ONE.

I READ THROUGH.

OKAY.

SO THEN WE'RE READY FOR A MOTION AHEAD.

SECOND.

OKAY.

ALL RIGHT.

UM, SO, UH, OH, ANY QUESTIONS FROM THE BOARD? UM, ONE QUESTION, UH, PRESIDENT HEALTH.

AND SO IN REGARDS TO THE RENOVATIONS, UM, HOW THE RENOVATIONS OCCURRED AS SOMEONE, UM, THERE AT LEASE ENDS, THEN YOU RENOVATE BEFORE SOMEONE MOVES IN, OR HOW, HOW'S THAT TRANSITION BEING? FOREST RENOVATIONS ? THERE WE GO.

THE GOAL IS TO NOT, UH, DISPLACE ANYBODY ON A LONG-TERM BASIS.

WE'VE HIRED A, YOU KNOW, A NATIONAL, UH, RELOCATION CONSULTANT TO TEMPORARILY, TEMPORARILY MOVE TENANTS OFFSITE WHILE THEIR UNITS ARE BEING RENOVATED, BUT IT'S NOT ON A ROLLING BASIS BASED ON LEASE EXPIRATION OR ANYTHING LIKE THAT.

ANY OTHER QUESTIONS? OKAY.

UM, DIRECTOR ALLEN APPROVE, DIRECTOR LEWIS, DIRECTOR GARCIA, APPROVE, DIRECTOR PHARAOH APPROVE.

DIRECTOR COLLINS APPROVE.

UH, VICE PRESIDENT GARCIA APPROVE.

DIRECTOR ELLIS APPROVE.

I APPROVE.

DIRECTOR VERNON APPROVE.

UM, SECRETARY PAGE, APPROVE, AND TREASURER MARTINEZ.

ALL RIGHT.

I, I WAS SO NERVOUS ABOUT THIS LONG AGENDA, , BUT WE WHIPPED THROUGH IT, SO, UM, YES.

YES.

DID ALL WE DID ALL THE WORK BEFORE THE MEETING.

EXACTLY.

YAY, .

UM, OKAY.

I WANNA THANK EVERYONE FOR BEING HERE, AND WE HAVE MORE TO CLOSE, YOU KNOW, UH, IMPORTANT DEALS, UH, FOR NEXT MONTH.

SO PLEASE MAKE EVERY EFFORT TO BE HERE.

THANKS.

OKAY.

SORRY, I ADJOURN.

IT'S 1243 .

THANKS.