[Dallas Housing Finance Corporation on July 11, 2023.]
[00:00:05]
I'M GONNA CALL THIS MORNING OF THIS MEETING OF THE DALLAS HOUSING FINANCE CORPORATION, UH, IN SESSION.
UM, AND, UH, I THANK, UH, EVERYONE FOR BEING HERE ON AMAZON PRIME DAY, AND WE COULD ALL BE ON THE COMPUTER SPENDING OUR MONEY.
SO, YOU KNOW, EVERYONE CAN THANK ME FOR THE SAVINGS.
UM, SO, UH, I WILL CALL UPON MS. SCHROEDER FOR THE ROLL CALL.
UM, WHEN I, UH, SAY YOUR NAME, PLEASE LET US KNOW YOU'RE HERE.
UM, DIRECTOR PRISMA GARCIA HERE, UH, DIRECTOR TATIANA FARROW.
PRESENT YOU DIRECTOR PATTY COLLINS HERE.
UM, DIRECTOR RYAN GARCIA HERE, UH, DIRECTOR DAVID ELLIS.
UH, PRESIDENT GARCIA HEALTHLAND.
DIRECTOR JOSH OR FERNAND HERE.
UH, DIRECTOR ANTHONY PAGE HERE.
IS HE NOT HERE? I DON'T SEE HIM.
AND WE DO HAVE A FORM, BUT HE DIDN'T KNOW ABOUT THIS MEETING.
NEXT ITEM IS, UM, TO CALL FOR PUBLIC COMMENTS ON ITEMS FIVE THROUGH EIGHT OF THE AGENDA.
AND SO I WILL OPEN THE FLOOR FOR ANY PUBLIC COMMENTS AND I'LL GIVE A LITTLE TIME IN CASE ANYBODY IS ONLINE.
UH, I DON'T HEAR ANY PUBLIC COMMENTS, SO I'LL MOVE ON TO ITEM NUMBER FOUR OF THE AGENDA, WHICH IS THE APPROVAL OF THE MINUTES FOR THE JUNE 13TH, 2023, CITY OF DALLAS HOUSING FINANCE CORPORATION MEETING.
AND, UM, I'LL, LET'S FIRST PUT A MOTION ON THE FLOOR.
I'LL MOVE TO APPROVE THE MINUTES.
AND DO I HAVE A SECOND? SECOND.
DOES ANYONE HAVE ANY ADDITIONS OR CORRECTIONS TO THE MINUTES? I GUESS NOT
UM, NEXT ITEM IS THE ELECTION OF A VACANT BOARD OFFICER POSITION.
AND, UM, THE VACANCY IS OUR, UH, TREASURER B MARTINEZ, UM, WHOSE TERM, UM, HAS EXPIRED.
UM, SO, UH, I WANNA START OFF BEFORE I OPEN THE FLOOR FOR ANY NOMINATIONS.
I'D LIKE TO START OFF JUST THANKING HER FOR HER SERVICE TO THIS BOARD, WHICH WAS EXEMPLARY.
UM, UH, SHE WAS WONDERFUL ABOUT ATTENDING.
SHE AGREED TO SERVE AS AN OFFICER, WHICH IS VERY MUCH APPRECIATED AND DID A GREAT JOB AS OUR TREASURER AND, UM, UH, GAVE US HER, UM, COUNSEL.
UH, HAVING EXTREME, UH, EXPERIENCE IN THE REALTOR COMMUNITY AND KNOWING ALL THE NEIGHBORHOODS WAS VERY VALUABLE.
WE HAVE OTHER REALTORS ON THE BOARD, AND SO WE SO APPRECIATE THAT KIND OF ADVICE.
UM, AND SHE ALSO ATTENDED, UH, BOTH STATE AND FEDERAL, UH, AFFORDABLE HOUSING CONFERENCES WHERE WE GAIN REALLY, REALLY VALUABLE INFORMATION.
AND, AND THAT'S A, UM, A BIG TIME COMMITMENT OF OUR BOARD MEMBERS TO DO THAT.
SO THAT IS JUST SO APPRECIATED.
AND I JUST WANNA GO ON RECORD, UH, THANKING HER SO MUCH FOR HER SERVICE TO THIS BOARD.
SO WE NOW HAVE THE TREASURER POSITION VACANT, AND SO I'M GONNA OPEN THE FLOOR FOR NOMINATIONS, BUT I WANNA START OFF BY PERSONALLY NOM NOMINATING TATIANA BARROW, WHO HAS BEEN ON THE BOARD FOR A NUMBER OF YEARS.
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UH, BACKGROUND AND PROFESSION, AND SO, UM, I THINK SHE WOULD JUST BE VERY WELL SUITED FOR THE POSITION.UM, BUT I WILL OPEN THE FLOOR FOR ANY OTHER NOMINATIONS.
UM, SO, UM, I DON'T KNOW, CAN WE JUST DO AN ALL IN FAVOR ON THIS ONE? IS THAT OKAY? HELLO, THIS IS WILLOW SANCHEZ FROM THE CITY ATTORNEY'S OFFICE, AND, UH, SOMEONE SHOULD MAKE A MOTION OH, TO, UH, HAVE THE ELECTION, UM, BASED ON THE NOMINEES THAT HAD BEEN NOMINATED, AND THEN A SECOND TO THE MOTION AND THEN THE VOTE.
DOES ANYONE MOVE TO HAVE AN ELECTION? OKAY,
UM, SECOND, WHO WAS THAT? TONY.
UM, I GUESS I'LL JUST DO AN ALL IN FAVOR SAY AYE.
THANK YOU SO MUCH, TATIANA, FOR AGREEING TO TAKE THIS POSITION.
I DON'T KNOW IF YOU WANNA SAY ANYTHING,
EVENTUALLY I WILL HAVE QUESTIONS ON THE FULL RANGE OF DUTIES, BUT YEAH, I'M EXCITED TO TAKE OVER AN OFFICER POSITION.
UM, CONSIDER AND ADOPT PARTNERSHIP RESOLUTIONS APPROVING THE FORM AND SUBSTANCE OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING OF THE MULTI-FAMILY RENTAL RESIDENTIAL DEVELOPMENT TO BE KNOWN AS CROSSING AT CLEAR CREEK AND CONTAINING OTHER PROVISIONS RELATING TO SUCH MULTIFAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT OR NEAR THE NORTHEAST CORNER OF HIGHWAY 1 75 AND WOODY ROAD, DALLAS, TEXAS 75,000 2 53.
YOUR HONOR, IS AARON ON, OR YES, I'M, I'M ON HERE.
UM, SORRY, JUST DIALING IN FROM VACATION HERE, MAKING SURE EVERYTHING'S WORKING.
UM, SO THIS IS AN LB D PROJECT.
THIS IS WILLOW SANCHEZ FROM THE CITY ATTORNEY'S OFFICE, AND I APOLOGIZE, BUT ERIN, YOU HAVE TO TURN ON YOUR VIDEO.
NO, AS YOU'RE DRINKING YOUR PINA COLADA.
IS THAT BETTER? YES, THANK YOU.
IT WAS SHOWING UP ON MY END, BUT I GUESS NOT.
UM, SO AGAIN, THIS PROJECT IS A 4% TAX CREDIT, NEW CONSTRUCTION PROJECT.
WE'VE PREVIOUSLY APPROVED THE INDUCEMENT AND IT'S BEEN THROUGH CITY COUNCIL AND HAD APPROVAL.
AND SO THIS, UH, RESOLUTION IS JUST APPROVING THE FINAL DOCUMENTS SO THAT WE CAN GET IT CLOSED AND START CONSTRUCTION.
UM, JAKE BROWN, I THINK IT'S HERE FOR ANY ADDITIONAL QUESTIONS, BUT I BELIEVE YOU ALL HAVE BEEN SUPPLIED THE FINAL PROFORMA AND ALL THE RELEVANT DOCUMENTS TO REVIEW.
JAKE, DID YOU WANNA MAKE ANY COMMENTS? CAN YOU GUYS HEAR ME GOOD? YEAH, WE'RE, UH, JACKIE, YOU, WHENEVER YOU'RE READY.
I'M JAKE BROWN WITH LDG DEVELOPMENT.
UM, I'LL JUST, I'LL TRY TO HIT THIS AS QUICKLY AS POSSIBLE, BUT I THINK MOST OF YOU KNOW BY NOW L D G DEVELOPMENT, AFFORDABLE HOUSING DEVELOPER.
WE'VE DONE THIS A TIME OR TWO WITH YOU GUYS.
UM, I WON'T BORE YOU WITH ALL THE BULLET PROBLEM.
UH, JUST A QUICK OVERVIEW OF THE PROJECT.
FIRST ONE WE'RE TALKING ABOUT, UM, IS THE CROSSING AT CLEAR CREEK, WHICH IS IN SOUTHEAST DALLAS.
REALLY AT THIS STAGE IN THE GAME, I THINK MOST OF YOU ARE AWARE, UM, WE'RE KIND OF COMING DOWN THE HOME STRETCH ON THE CLOSING PROCESS.
WE'VE GOT, THE CLOSING DATE IS SCHEDULED FOR JULY THE 27TH.
UM, SO JUST A LITTLE OVER TWO WEEKS AWAY.
SO ALL OF THE ZONING IS IN PLACE, THE COUNCIL APPROVALS ARE IN PLACE, UM, JUST WORKING ON FINALIZING SIGNATURE PAGES FOR DOCUMENTS AND THEN,
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UM, JUST KIND OF A QUALITY CONTROL REVIEW OF THOSE DOCUMENTS.AND ALSO PUSHING BUILDING PERMITS, UH, APPROVAL ACROSS THE FINISH LINE.
SO REALLY THEY'RE KIND OF INSIDE THE FIVE YARD LINE, IS HOW I WOULD DESCRIBE IT.
I WILL SAY, UH, ALL OF THE, I THINK WHEN WE ORIGINALLY PRESENTED THIS, IT WAS CONTEMPLATED THERE WOULD BE A PERCENTAGE OF MARKET RATE UNITS THAT HAS CHANGED.
UH, AND SO ALL OF THOSE ARE NOW AT 60%, UM, AAMI, BUT THE PROJECT AS A WHOLE, AS FAR AS THE AMENITIES AND, UM, THE UNIT MIX ITSELF IS THE STYLE, THE BUILDINGS, THE, THE SPIRIT OF THE PROJECT IN GENERAL'S ALL IDENTICAL, BUT TO WHAT IT WAS WHEN WE ORIGINALLY, UH, ORIGINALLY, UH, THIS IS JUST A SITE MAP SHOWING YOU PART OF TOWN THAT IS FAR SOUTHEAST DALLAS.
AND WHEN I SAY FAR SOUTHEAST DALLAS, IT'S JUST RIGHT THERE ON THE, I THINK WE SHARE A PROPERTY LINE WITH THE CITY OF SEAVILLE.
SO IT'S ONE OF THE LAST PARCELS IN DALLAS CITY LIMITS.
IT'S, YOU CAN GO NEXT ONE, UH, JUST CONCEPTUAL OR REALLY, IT'S NOT CONCEPTUAL AT THIS POINT.
THIS IS, THIS IS THE SITE PLAN, UM, FOR, UH, FOR CLEAR CREEK.
UH, YOU'VE GOT ACCESS OFF OF 1 75 FRONTAGE ROAD AND THEN, UH, AN EXIT POINT ONTO, UH, WOODY ROAD THERE TO THE REST.
NEXT FEW SLIDES ARE JUST RENDERINGS AND PICTURES, UM, OF WHAT THE INSIDE AND THEN BOTH THE EXTERIOR OF OUR DEVELOPMENT WILL LOOK LIKE.
AND THEN I, YEAH, LAST SLIDES JUST TALKING ABOUT THE FEE SPLITS.
AGAIN, THIS IS CONSISTENT WITH ALL OF THE OTHER TRANSACTIONS DEALS THAT WE'VE WORKED ON WITH YOU GUYS.
UH, NO DIFFERENT HERE AS FAR AS THE SPLITS ON DEVELOPER FEE, CASHFLOW, SALE REFI.
UM, JUST AS A REMINDER, YOU GUYS ON PAPER AT LEAST ARE SERVING AS A GENERAL CONTRACTOR FOR THE PURPOSE OF A SALES TAXATION.
AND, UH, OF COURSE THE PARTNERSHIP MAY FEE.
UH, BUT HAPPY TO ANSWER ANY QUESTIONS IF YOU GUYS HAVE.
SO DOES THIS ONE HAVE A, UM, WHAT I'LL CALL A SPONSOR NOTED? UH, YES MA'AM.
UM, SO THAT'S A CHANGE FROM WHEN THIS WAS PRESENTED.
YEAH, I THINK WHEN WE ORIGINALLY PRESENTED IT WASN'T CONTEMPLATING ONE AT ALL.
SO YEAH, WE'LL JUST, IT'S AT LEAST A CHANGE IN THE AMOUNT FROM WHAT IT WAS.
AND I, I DON'T KNOW THAT AT ANY POINT WE HAD CONTEMPLATED IT WITH A NOTE, BUT BOTH THIS ONE AND THE TERRACE AT HIGHLAND HILLS THAT WE'LL TALK ABOUT IN A MOMENT, ABSOLUTE NOTES.
AND, UM, AND I GUESS I'LL ASK RYAN, BUT IN THE PARTNERSHIP AGREEMENT, DID WE PUT IN, UM, SOME PROVISIONS DEALING WITH AMOUNTS COMING TO THE D H F C? SORRY, SO BE CONCERNED ABOUT, IT WASN'T, UM, AS HIGH AS IT WAS IN THE ASH CREEK DEAL, SO, UM, WE ACTUALLY DIDN'T HAVE THAT MECHANISM JUST BECAUSE I THINK THE, UM, IN IMPACT TO, UM, THE HFCS EXPECTED RETURN ON THIS DEAL.
UM, I, JAKE CORRECT ME IF YOU HAVE A DIFFERENT INTERPRETATION, BUT IT IS NOT ACCURATE.
NO, IT'S NOT, WHICH IS UNFORTUNATE, BUT FRANKLY, I'M, I'M JUST HAPPY OR PLEASED TO BE EVEN AT A POINT THAT WE'RE ABLE TO EX EXECUTE THE DEAL JUST KIND OF GIVEN WHAT'S GOING ON IN THE ECONOMY, BUT THAT ALL OF THAT IS TRUE AND ACCURATE STATEMENT,
SO, UM, YEAH, AND AGAIN, IF YOU GUYS, EVEN AFTER THE FACT, IF YOU GUYS ARE TAKING A LOOK AT IT AND HAVE QUESTIONS ABOUT, I MEAN, OBVIOUSLY YOU'VE GOT FA AND COUNSEL THAT CAN HELP, BUT IF YOU WANT TO VISIT WITH ME OR OUR TEAM DIRECTLY, I, IT'D MORE THAN HAPPY TO DO THAT.
SO SHOULD I OPEN IT FOR QUESTIONS? WERE YOU FINISHED WITH I'M DONE, YEAH, LET'S FIRE QUESTIONS AWAY IF THERE ARE ANY.
I GUESS DIRECTOR PAGE, NO CONCERNS WITH ACCESS.
WE, UH, SPOKE ABOUT IT EARLIER THIS MORNING, SO I'M SATISFIED.
YOU'RE, YOU'RE MY ACCESS PERSON,
UM, I'LL MOVE TO APPROVE THAT, THE DOCUMENTS IN MY FINAL FORM.
AND DO I HAVE A SECOND? I'LL SECOND.
I'M GONNA GO DOWN THE LIST IF I CAN FIND THE LIST.
[00:15:03]
DIRECTOR COLLINS APPROVE.UM, VICE PRESIDENT GARCIA APPROVE.
UM, CONSIDER AND ADOPT PARTNERSHIP RESOLUTIONS, APPROVING THE FORM AND SUBSTANCE OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING OF THE MULTIFAMILY RENTAL RESIDENTIAL DEVELOPMENT TO BE KNOWN AS THE TERRACE AT HIGHLAND HILLS, AND CONTAINING OTHER PROVISIONS RELATING TO SUCH MULTIFAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT OR NEAR 3,100 PERSIMMON ROAD, DALLAS, TEXAS, 75,241.
SO, UM, ERIN, YEAH, JUST BRIEFLY, THIS IS ANOTHER ONE FROM JAKE.
UH, SO I'LL, I'LL LET HIM EXPLAIN THE PROJECT AND, UH, WE CAN GO FROM THERE.
I, IT'S ALMOST A CARBON COPY, BUT, UH, WE JUST WENT OVER.
UM, BUT I, WHAT WE CAN DO, IF WE JUST WANT TO HIT ON, IF YOU'LL PULL UP THE HIGHLAND HILLS ONE, JACKIE, I'LL GO THROUGH JUST THE PROJECT SPECIFIC INFO AND THEN WE CAN TURN IT OVER FOR QUESTIONS, BUT REAL, REAL SIMILAR.
UM, THE MAIN DIFFERENCE BEING THAT THIS ONE'S A LITTLE BIT BIGGER, IT'S GOT 300 UNITS AS OPPOSED TO THE 2 64 ON CLEAR CREEK, BUT SAME STAGE IN THE GAME, YOU KNOW, ZONINGS IN PLACE, ALL THE COUNCIL APPROVALS ARE IN PLACE JUST WORKING ON BUTTONING UP DOCUMENTS, UM, AND PUSHING PERMITS ACROSS THE FINISH LINE ON THIS ONE.
UH, AGAIN, THE ONE CHANGE, I GUESS, UM, I THINK FROM WHEN WE ORIGINALLY PRESENTED THIS IS THAT IT NO LONGER CONTEMPLATES MARKET MARKET RATE UNITS.
SO ALL, ALL OF THE UNITS ARE AT 60% AAMI.
UM, SO THAT, THAT'S REALLY PROBABLY THE, THE ONLY THING THAT'S DIFFERENT.
AGAIN, SAME PROJECT OVERALL UNIT MIX, BILLING STYLE AMENITIES, ALL THAT STUFF IS THE SAME IN CONSISTENT.
UM, AND AGAIN, CARBON COPY, THIS ONE'S GOT A SUBORDINATE NOTE.
SUBORDINATE NOTE IS SIGNIFICANTLY SMALLER ON THIS ONE.
I'LL TELL YOU, UH, FINANCIALLY THIS DEAL IS, IS MUCH HEALTHIER, UNFORTUNATELY, STILL NEEDS A NOTE, BUT, UH, IT'S, IT'S MUCH SMALLER IN NATURE.
UM, I THINK THAT'S PROBABLY IT.
NOTHING ELSE HAS CHANGED AT THIS POINT, BUT OF COURSE I'M MORE THAN HAPPY TO ANSWER QUESTIONS IF I DON'T, I DON'T WANT TO GO THROUGH THE SAME THING AGAIN.
I DON'T WANNA WASTE, BUT HAPPY TO ANSWER, UH, ANY QUESTIONS ALL? OKAY.
I'LL OPEN THE FLOOR FOR QUESTIONS.
UM, SO IS THIS ONE A NEW BUILD OR A RENOVATION? IT'S NEW.
IT'S BOTH OF 'EM ARE NEW BUILD.
ANY OTHER QUESTIONS? I GUESS NOT.
I'LL MOVE TO APPROVE THE DOCUMENTS IN THE FINAL FORM.
DIRECTOR GARCIA, APPROVE DIRECTOR.
UM, TREASURER FARROW APPROVE, DIRECTOR COLLINS APPROVE.
UM, VICE PRESIDENT GARCIA APPROVE.
OKAY, NEXT ITEM IS ITEM NUMBER NINE, REVIEW AND DISCUSSION.
DID I GET THAT ITEM NUMBER RIGHT? YEAH.
UM, ITEM NUMBER NINE, REVIEW AND DISCUSSION OF DALLAS H FFC PIPELINE REPORT.
UM, THAT IS NOT THE ACCURATE, NO, WE'RE ON ASH CREEK.
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ALL OKAY.OKAY, SO THIS IS NUMBER SEVEN, RIGHT? YES.
CONSIDER AND ADOPT 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 APARTMENTS, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 26 0 5 JOHN WEST ROAD, DALLAS, TEXAS, 75,228 ROSEMONT AT ASH CREEK, AND CONTAINING OTHER PROVISIONS RELATING TO SUCH DEVELOPMENT.
SO WE ACTUALLY DID THE SAME THING LAST MONTH FOR THIS DEAL, BUT, UH, JUST BASED ON MARKET CONDITIONS AND A FEW CHANGING, UH, I GUESS DETAILS AND THE FINANCES THEY NEEDED TO UP THE SPONSOR NOTE.
UM, SO WE HAD TO BRING IT BACK HERE TO GET THE APPROVAL FROM THE BOARD AGAIN, UM, JUST TO, TO MAKE THIS WORK AND TO GET IT ACROSS THE FINISH LINE HERE.
SO I BELIEVE WE HAVE NICK LA HERE TO ANSWER ANY QUESTIONS YOU GUYS MIGHT HAVE.
SO I'LL, I'LL TURN IT OVER TO NICK IF YOU GUYS HAVE ANY, UH, ADDITIONAL QUESTIONS.
HEY, GOOD AFTERNOON EVERYBODY.
UH, I'M A DEVELOPMENT ASSOCIATE WITH DECO.
UM, SO I'VE PUT TOGETHER A VERY BRIEF AND SUCCINCT REFRESHER FOR YOU GUYS.
UM, SO THIS PROJECT IS A 280 UNIT AFFORDABLE HOUSING COMPLEX, LOCATED ABOUT NINE MILES EAST OF HERE.
I WAS BUILT IN 2004, UM, INITIALLY WITH LANCOME HOUSING TAX CREDITS.
UH, WE PURCHASED THE ASSET AT THE END OF 2020 WITH THE INTENTION TO RES SYNDICATE WITH 4% LOCUM HOUSING TAX CREDITS.
UM, THE CURRENT BUDGETED FIGURE FOR THE HARD COSTS, UH, IS THE SAME AS WHAT WAS ON THE DOCKET FOR APPROVAL, UH, PREVIOUS, UH, TIME THAT I WAS HERE AT 69,000 PER DOOR.
UH, AND AS A REMINDER, D H F C HAS 37.5% INTEREST IN THE BARRING ENTITY FOR THIS PROJECT.
SO, MARCY, YOU REQUESTED WE CHAT A LITTLE BIT ABOUT THE, UM, COST INCREASES AND THE REASON FOR THE COST INCREASES, WHICH THEN AFFECTS THE, UH, SELLER NOTE INCREASE.
UH, I SUMMED UP A FEW BIG TICKET ITEMS THAT ARE AFFECTING THE COSTS.
UM, SO IN TOTAL, THE TOTAL DEVELOPMENT COSTS INCREASED 1.4 MILLION, UH, 673,000 OF WHICH IS, UH, ASSOCIATED WITH THE TENANT RELOCATIONS.
SO OUR VENDOR, UH, GAVE US AN UPDATED FIGURE OF THE ESTIMATE IT IT COSTS TO RELOCATE TENANTS TO ONE, AN EXTENDED STAY HOTEL AND TWO TO TEMPORARY CORPORATE, UM, UM, SUBLEASES FOR MULTI-FAMILY PROJECTS.
UM, HOTEL COSTS HAVE INCREASED SIGNIFICANTLY SINCE WE PREVIOUSLY RECEIVED OUR QUOTE.
UM, SO ONCE O P C UPDATED US AND GAVE US THE UPDATED FIGURE, UM, THE FIGURE UNFORTUNATELY WENT UP 673 K.
UM, THE NEXT ITEM, UH, WAS AN INCREASE IN TITLE AND ESCROW COSTS.
UH, OUR DEBT EQUITY PARTNERS REQUESTED ADDITIONAL TITLE AND LOAN POLICIES, UH, TO SATISFY THEIR LEGAL REQUIREMENTS.
UH, AND IN DOING SO, THE TITLE OF ESCROW COSTS INCREASED 125,000.
UM, THE NEXT ITEM THAT INCREASED, UH, WAS, UM, SO WE HAD A CONVERSATION WITH HUD, AND HUD HAS BEEN VERY SENSITIVE AS IT RELATES TO INSURANCE NOWADAYS.
UH, SO THEY REQUESTED THAT WE INCREASE OUR, UM, UH, INITIAL DEPOSIT TO KEEP OUR EXISTING DEDUCTIBLE, UM, WHICH IS BEING FUNDED BY DECO CASH.
UH, SO THAT NUMBER FOUR 68,000 UNFORTUNATELY, UM, UH, UH, CAUSED AN INCREASE IN OUR BUDGET.
AND LASTLY, THE BIG TICKET ITEM.
UM, WELL, WE INCLUDED 650,000 IN ADDITIONAL CONTINGENCY, UH, AS COST MAY INCREASE, UH, UH, TO CLOSING, BUT THIS IS OUR, I GUESS OUR LAST ATTEMPT TO, OR LAST CHANCE WE HAVE TO, UM, GET IN FRONT OF ANY ADDITIONAL COST INCREASES PRIOR TO CLOSING NEXT THURSDAY.
UM, ONE THING I DO WANT TO NOTE, THOSE FIGURES RIGHT THERE, THEY TOTAL TO A NUMBER SLIGHTLY HIGHER THAN THE 1.4 MILLION INCREASE.
UM, I THINK A TOTAL, SO ABOUT 1.9.
AND IT'S BECAUSE WE ALSO HAD SOME COST DECREASE DECREASES RELATIVE TO WHAT WE HAD BEEN BUDGETING.
UH, PERM LEGAL FEES WERE A LITTLE BIT LOWER, UH, INTEREST COSTS WERE SLIGHTLY LITTLE BIT, UH, LOWER DURING CONSTRUCTION, ET CETERA.
SO NET NET, UM, THE TOTAL PROJECT COST INCREASED 1.4 MILLION.
UH, AND I GUESS TO SUM IT ALL UP, THE REQUEST FROM DEVCO IS TO, UH, REQUEST APPROVAL AT AN AMOUNT UP TO 17.75 MILLION FOR THE, UM, SELLER NOTE.
AND THAT WRAPS UP, UM, UH, MY PRESENTATION.
IF YOU GUYS HAVE ANY QUESTIONS, I'M HAPPY TO CHAT ABOUT IT.
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AND I GUESS ONE THING BRIEFLY TO QUICKLY MENTION AS WELL, RYAN, UM, UH, EQUITY COUNCIL WAS CURRENTLY WORKING ON GETTING AN UPDATED DROP TO THE LPA WITH THE COMMENTS THAT HILLTOP AND JEFFCO WAS DISCUSSING THE OTHER DAY.YEAH, I THINK THAT CAME OUT SHORTLY BEFORE THE MEETING, SO, OKAY, PERFECT.
UM, YEAH, WE'VE BEEN GOING BACK AND FORTH ON THAT PROVISION TO THE SALE WATERFALL AND WE'RE, WE'RE MAKING PROGRESS AND I'M CONFIDENT WE'LL, WE'LL GET THAT.
THE WAY WE NEED TO LOOK, JUST SO EVERYONE ON ON THE BOARD UNDERSTANDS, UM, WHEN WE APPROVED THIS DEAL, AS WE DO WITH ALL OF OUR DEALS, UM, WE TRY TO DETERMINE WHETHER SOME MONIES CAN COME BACK TO THE H FFC BECAUSE ANY MONIES THAT COME BACK TO THE HFC OBVIOUSLY WE CAN THEN USE TO PROVIDE MORE AFFORDABLE HOUSING.
AND, YOU KNOW, SO THAT'S WHAT WE TRIED TO ACCOMPLISH, UM, AND WHAT WE'RE PUTTING INTO THESE DEALS IS THE TAX EXEMPTION AND SOMETIMES THE CONSTRUCTION, UH, TAX EXEMPTION.
UM, AND SO WHAT HAPPENED WHEN THERE GOT TO BE THIS VERY LARGE SELLER NOTE IS THAT THOSE AMOUNTS DIDN'T LOOK LIKE THEY WERE GONNA HAPPEN.
UM, SO WE MADE TWEAKS TO THE WATERFALL SO THAT WE COULD TRY TO BE MORE ASSURED OF, UM, RECEIVING THOSE FUNDS THAT WE EXPECTED TO RECEIVE WHEN WE FIRST APPROVED THE DEAL.
UM, AND THE, THE AMOUNT OF THAT NOTE HAS BEEN JUST KIND OF CHANGING ON A MONTHLY BASIS.
SO THAT WAS ONE OF THE REASONS THAT WE REQUESTED A RUNDOWN OF WHY THAT NUMBER KEEPS GETTING HIGHER AND HIGHER.
UM, SO THAT'S, UH, I JUST WANNA MAKE SURE THAT I'M FILLING EVERYONE IN ON WHAT HAS TRANSPIRED ON THIS DEAL.
UM, SO I'LL OPEN IT UP IF ANYONE ELSE ON THE BOARD HAS ANY QUESTIONS.
I WILL MOVE TO APPROVE THE DOCUMENTS, UM, UNDER THE, UNDER THE ASSUMPTION THAT WE CAN FINALIZE THE TERMS OF THE L P A.
UH, DO I HAVE A SECOND? I'LL SECOND.
DIRECTOR GARCIA APPROVE SECRET, UH, SORRY.
VICE PRESIDENT GARCIA APPROVE.
NOW WE CAN GO ON TO, NOW THAT I'M BACK WHERE I SHOULD BE.
DO I HAVE THAT RIGHT? ONLY ON ITEM NINE, I DON'T HAVE THE REVISED.
I THINK TECHNICALLY MARCY, THIS ONE SHOULD BE THE ESTATES AT FERGUSON, BUT THEY HAD WITHDRAWN ON FRIDAY AFTER WE HAD POSTED THE AGENDA.
AND I THINK, UM, I THINK MS. SCHROEDER, UM, MADE THAT CORRECTION.
YEAH, YEAH, WE AMENDED THAT WAS WHY I WAS CONFUSED, IS THAT I HAD PRINTED OUT THE OLD ONE.
BUT YEAH, WE CIRCULATED A NEW AGENDA TO THE BOARD, YES.
UM, OKAY, SO PIPELINE REPORT, UM, HOPEFULLY YOU GUYS ALL RECEIVED THE SPREADSHEET WITH OUR CURRENT, UM, WE CALL IT OUR PIPELINE.
SO BASICALLY IT'S ALL OUR PROJECTS THAT WE HAVE, UM, OWNERSHIP IN, AND THEN ALL THE ONES THAT ARE UNDER CONSTRUCTION AND, UM, APPROVED WAITING FOR CLOSING.
UM, SO OUR DIRECTOR TO BE NO GOOD SUGGESTED THAT WE GO THROUGH THIS AS KIND OF A STANDING ITEM EVERY MONTH NOW AT OUR MEETINGS, JUST TO KEEP EVERYBODY ABREAST
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OF WHAT'S GOING ON WITH OUR PORTFOLIO.UM, SO IT'S A, IT'S A GREAT ADDITION HERE TO THE AGENDA.
SO, UM, WE'RE JUST GONNA KEEP THIS HERE AS A, AS KIND OF A MONTHLY, UM, QUICK REPORT HERE.
SO BASICALLY, I'LL JUST GO THROUGH THIS REAL QUICK AND IF YOU GUYS HAVE QUESTIONS, PLEASE FEEL FREE TO, TO CHIME IN.
UM, THIS ISN'T REALLY A VOTING ITEM, IT'S KIND OF MORE OF AN UPDATE.
SO, UH, WE HAVE 12 PROJECTS CURRENTLY THAT ARE DONE AND OPERATING AND JUST, UM, CURRENTLY, UH, JUST OPERATING AS, AS NORMAL.
SO THAT STARTS WITH OUR, OUR JUBILEE PROJECT, PROVIDENCE MOCKINGBIRD, MID PARK TOWERS 2,400, BRIAN THE BRISCOE, THE DYLAN STERLING SHARE, UM, PARK AT CLIFF CREEK, MARTHA'S VINEYARD RIDGE, COAST TERRACE, UH, STATES SUCH SILO AND PALLADIUM.
SO THESE HAVE ALL BEEN PRETTY SUCCESSFUL.
THERE HAVE BEEN SOME ISSUES AT STERLING SHERE APARTMENTS, BUT I THINK, UM, BASED ON OUR LAST COMMUNICATIONS WITH THE PROPERTY MANAGERS THERE, IT'S STARTING TO TURNAROUND.
UM, BUT STILL, YOU KNOW, UH, A FEW ISSUES OUTSTANDING THERE, BUT, UM, I THINK WE'RE HEADED IN THE RIGHT DIRECTION THERE.
UH, MOVING ON TO THE ONES THAT ARE UNDER CONSTRUCTION OR JUST AWAITING APPROVAL.
UM, WE HAVE THE ESTATE AT FERGUSON THAT WILL BE COMING UP TO OUR BOARD NEXT MONTH FOR FINAL APPROVAL.
THIS IS ANOTHER NEW CONSTRUCTION, 4% DEAL.
UM, WE'RE JUST FINALIZING THE MOU AND WE'RE EXCITED ABOUT THAT ONE.
UM, THE RIDGE AT LANCASTER IS UNDER CONSTRUCTION ALMOST READY FOR LEASE UP.
SO THAT'S, THAT'S GOING REALLY WELL.
UM, IT'S A BRAND NEW PROPERTY AND SO THAT WILL BE A GREAT ADDITION TO THE COMMUNITY.
UM, THE HIGH POINT PROPERTY SAYING THIS IS A NEW CONSTRUCTION SLASH REHABILITATION, SO THAT SHOULD BE COMPLETED SOMETIME IN THE NEXT YEAR.
UM, WE HAVE DALLAS STEM AND JULIET FOWLER FILLS AT WESTERN HEIGHTS AND THE OAKS.
THOSE ARE ALL PROPERTIES THAT WE ARE JUST THE ISSUER FOR THE BONDS ON.
UM, SO WE DON'T HAVE DIRECT OWNERSHIP, BUT WE DO RECEIVE THE, UH, ADMINISTRATIVE ISSUER FEE ON THOSE.
UM, THEN MOVING ON TO A COUPLE OTHER ONES THAT HAVE BEEN APPROVED, MANO AND ANO.
UM, THESE ONES ARE ALSO AWAITING CLOSURE FOR THE BONDS, AND SO WE'LL, WE'LL BE SEEING THOSE COME BACK FOR FINAL APPROVAL IN THE NEXT COUPLE MONTHS.
MOVING ON THESE TWO TODAY THAT WE APPROVED CROSSING AND CLEAR CREEK AND TERRACE AT ALLEN HILLS, THOSE WILL BE STARTING CONSTRUCTION SHORTLY AFTER WE GET ALL THE DOCUMENTS IN ORDER AND CLOSE ON.
UM, MOVING ON TO THE ESSENTIAL BOND DEALS THAT ARE OUTSTANDING.
FITZ HUG, URBAN FLOW AND DOMAIN AT MIDTOWN.
UM, SPOKE WITH SEAN ROSSON, HE IS THE DEVELOPMENT PARTNER ON DOMAIN AT MIDTOWN, AND HE SAID THIS DEAL IS OUT FOR PRICING FOR THE BONDS.
UM, THEY'RE OPTIMISTIC THAT THEY CAN GET PRICED, UM, BY THE END OF THE WEEK.
UM, LATELY WE'VE BEEN HAVING SOME REALLY A, A LOT OF DIFFICULTIES GETTING THE BONDS PRICED FOR THESE ESSENTIAL FUNCTION DEALS.
IT'S JUST A FUNCTION OF RATES AND THE, THE MARKET FORCES HERE THAT ARE HAVE BEEN, UM, A LITTLE UNFORTUNATE AND IT'S, IT'S MAKING IT REALLY DIFFICULT TO GET THESE DEALS FINANCED.
AND SO WE'RE OPTIMISTIC THAT THIS WILL GET DONE.
I'M NOT SURE IF THEY HAD AN UPDATE THIS MORNING, UH, RYAN OR GEORGE, MAYBE YOU COULD CHIME IN ON THAT ONE.
UM, BUT I'M ASSUMING IT'S KIND OF IN THE SAME POSITION AS DOMAIN WHERE WE HAVE, UM, JUST AWAITING FINAL PRICING AND, AND HOPEFULLY THAT CAN GET DONE WITH THESE INVESTORS THAT ARE STARTING TO COME AROUND HERE, UM, IN THE CURRENT MARKET CONDITIONS.
UM, MOVING THROUGH TO MEADOWBROOK AND TERRACE AT SOUTHERN OAK, THESE ARE TWO LBG DEALS THAT ARE UNDER CONSTRUCTION AS WELL.
THEY SHOULD BE DONE IN THE NEXT YEAR OR SO.
UM, SO THESE ARE, ARE GOING ALONG GREAT.
UM, WESTMORELAND STATION, THAT'S ANOTHER GENERATION HOUSING DEAL THAT SHOULD BE FINISHING UP CONSTRUCTION IN THE NEXT YEAR AS WELL.
UM, AND THEN WE HAVE TWO MORE, UM, ESSENTIAL BOND DEALS THAT HAVE BEEN APPROVED BY COUNCIL AND BY USM AT MIDTOWN AND ACCESS KE PARK.
SO WE'RE JUST, UM, WAITING TO SEE WHAT HAPPENS WITH FITSU IN DOMAIN AND THEN WE'LL, WE'LL PUT THOSE OUT ON THE MARKET TO HOPEFULLY GET THEM PRICED AND, AND FINANCED AND, AND CLOSED.
[00:35:01]
ROCK ISLAND RIVERFRONT, THIS WAS INDUCED BY US AND IT LOOKS LIKE HAS A GOOD CHANCE OF GETTING A BOND ALLOCATION, UM, IN AUGUST, I BELIEVE.AND SO WE MAY OR MAY NOT SEE THAT COME BACK TO US EITHER IN AUGUST OR OR SEPTEMBER SO THAT WE CAN, UH, GET THAT ONE, UH, IN FRONT OF THE BOARD AND AND APPROVE TO, TO START CONSTRUCTION BY THE END OF VIDEO.
AND THEN THE REST OF THESE ON THE, UM, SPREADSHEET, THESE ARE JUST 9% DEALS.
UM, SO NOT, NOT A LOT TO REPORT ON THOSE.
THOSE ARE A DIFFERENT, DIFFERENT KIND OF PROGRAM.
THERE'S NOT, UH, ANYTHING TO UPDATE ON THOSE.
SO ANY, ANY QUESTIONS FROM THE BOARD? I HAVE A QUESTION.
UH, THE COLUMN FOR THE NOTES, IS THAT A COLUMN THAT YOU'RE GONNA UPDATE TO LET US KNOW THE STATUS OF EACH OF THE PROJECTS OR MAYBE, UM, IF THERE ARE BOTTLENECKS OR THINGS THAT THE PROJECT IS WAITING ON? I THOUGHT THAT WOULD BE HELPFUL.
WE HELPFUL? YEAH, WE CAN, WE CAN CERTAINLY DO THAT.
YEAH, THIS IS KIND OF, THIS IS THE FIRST TIME WE'RE KIND OF PRESENTING THIS REPORT TO YOU.
OBVIOUSLY WE'RE OPEN TO SUGGESTIONS AND UM, IF IF THERE'S ANYTHING THAT YOU GUYS WOULD LIKE TO SEE THAT'S NOT INCLUDED HERE, PLEASE LET US KNOW AND, AND WE'LL GET THAT INCORPORATED.
YEAH, I AGREE WITH TREASURER FARROW THAT, UM, THAT IT WOULD BE NICE TO KNOW, YOU KNOW, WE, WE REVIEW THESE AND THEN WE SOMETIMES KNOW, DON'T KNOW WHAT HAPPENED TO THEM, SO MAYBE WE COULD HAVE AN AGENDA ITEM ANYTIME THAT THERE IS, HAS BEEN SOMETHING LEARNED ABOUT THEM, HAVE AN AGENDA ITEM WHERE, WHERE WE GET A UPDATED, YOU KNOW, IF THEY EITHER YEAH, I THINK TRULY FALL OUT FOR ONE REASON OR ANOTHER, OR WE THINK THEY'RE GONNA COME BACK LATER OR, YOU KNOW, ANY, ANY UPDATES WOULD BE GREAT.
I, I THINK, YEAH, THAT, THAT'S THE KIND OF THE PURPOSE OF, OF GETTING THIS HERE AS LIKE A STANDING ITEM WHERE WE CAN TALK ABOUT THESE AND, AND WHAT THE STATUS IS AND, AND WE'LL GET THAT ADDED FOR NEXT MONTH, YOU KNOW, JUST THE, THE NOTES ON, ON WHERE THE, THE PROGRESS IS.
ERIN, I THINK I MISSED WHAT YOU SAID EARLIER.
WERE THE 21 AND 22 9% DEALS CONSIDERING PARTNERSHIP WITH US? NO, ACTUALLY THIS, THIS IS JUST KIND OF LIKE A LEGACY.
UM, I GUESS KYLE SET THIS UP, THOSE, THOSE NINE PERCENTS ACTUALLY DON'T REALLY HAVE ANYTHING TO DO WITH THE H FFC.
ANY OTHER QUESTIONS AS DIRECTOR ELLIS? I WOULD JUST SAY JUST KIND OF GETTING A HANDLE ON EVERYTHING THAT D HFCS INVOLVED WITH, UH, SOMETHING I'VE KIND OF MENTIONED QUITE A BIT.
SO, UH, JUST REALLY HAPPY THAT WE'RE MAKING A GOOD STEP FORWARD, UH, TO GET THAT DONE.
SO THANK YOU ERIN AND TEAM, UH, FOR DOING THIS.
AND UM, AS WE MENTIONED AS STATES THAT FERGUSON WILL BE COMING UP, YOU KNOW, KIND OF CRITICALLY, UH, AT THAT AUGUST MEETING.
AND WE MAY HAVE OTHER ITEMS ON THESE, YOU KNOW, VERY PENDING DEALS COMING UP IN AUGUST.
SO I GUESS I WOULD JUST, UH, ENCOURAGE EVERYONE TO MAKE SURE THEY HAVE OUR AUGUST MEETING DATE ON THEIR CALENDARS SINCE IT'S THE MIDST OF SUMMER.
UH, GEORGE, DID YOU WANNA SAY SOMETHING? I WAS GONNA SAY ALSO POSTIT WILL HAVE ITS FINAL APPROVAL, THE AUGUST MEETING, RIGHT? I FORGOT ABOUT THAT ONE.
YEAH, SO WE HAVE SOME VERY IMPORTANT, UH, THINGS THAT WE'RE GONNA NEED TO APPROVE.
WE, WE REALLY, REALLY NEED TO HAVE A QUORUM FOR THAT AUGUST MEETING, SO JUST WANNA MAKE SURE EVERYBODY PUTS IN ON THEIR CALENDAR.
UM, SO ANY OTHER QUESTIONS? UM, JUST AS A MORE GENERAL QUESTION, UM, HAVE WE HEARD OF ANYONE TRYING TO COME IN FOR A 2024 BOND DEAL? ARE WE STILL A LITTLE EARLY FOR THAT OR IS IT JUST A TOUGH MARKET RIGHT NOW? HEY, GOOD QUESTION.
UH, VICE PRESIDENT GARCIA, I THINK A LOT OF THE PEOPLE ARE STILL JUST WAITING FOR THE AUGUST COLLAPSE TO SEE WHAT HAPPENS ON THE ALLOCATIONS IF THEY GET ONE THIS YEAR.
UM, BUT I THINK IF THEY DON'T, I, I THINK WE'LL SEE A FEW MORE, UM, APPLICATIONS COME BACK TO US, UM, FOR NEXT YEAR AND, AND THEN WE'LL START GOING ON THOSE ONES TOO.
WELL I THINK IF THERE'S NOTHING ELSE
[00:40:01]
ADJOURNED AND LET EVERYONE GET BACK TO THEIR COMPUTERS FOR ONE THING OR ANOTHER.PLEASE STATE THE TIME OF ADJOURNMENT.
THANK YOU EVERYONE, AND HAVE A GOOD SUMMER TILL WE TILL OUR NEXT MEETING.