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OKAY, I'M GONNA CALL THE MEETING TO ORDER.
UM, AND, UH, I'LL ASK, UM, MR. QUINTO TO DO THE ROLL CALL, PLEASE.
YES, YOU, UH, WOULD JUST PLEASE INDICATE WHETHER YOU'RE HERE WHEN I CALL YOUR NAME DIRECTOR SEAN ALLEN.
PRESENT DIRECTOR JESSICA DEPA.
IS SHE HERE? IS JESSICA HERE? I DON'T THINK SO.
HE SAID HE WAS NOT GONNA BE HERE.
DIRECTOR FSMA GARCIA ALSO SAID SHE WOULD NOT BE HERE.
DIRECTOR PATTY COLLINS NOT GONNA BE HERE.
UH, DIRECTOR, UH, VICE PRESIDENT RYAN GARCIA.
I WILL NOW OPEN THE FLOOR FOR ANY PUBLIC COMMENTS ON OUR AGENDA ITEMS FOUR THROUGH NINE.
SO, UM, I WILL ASSUME THERE ARE NO PUBLIC COMMENTS.
THE NEXT ITEM IS APPROVAL OF THE MINUTES.
THIS IS ITEM AGENDA ITEM FOUR, APPROVAL OF THE MINUTES FOR THE MARCH 14TH, 2023, CITY OF DALLAS HOUSING FINANCE CORPORATION MEETING.
UM, AND I, UH, HAD SOME TYPOS,
THERE'S A TYPO OF MY NAME IN ITEM TWO.
UH, IN SECTION, WELL, IN THE LAST PARAGRAPH IT SHOULD SAY DIRECTOR HEALTH HAND POINTED OUT DISCREPANCIES AND CHANGES THE WORD.
AND, AND THEN MY NAME IN, UM, I GUESS IT'S THE LAST, THE LAST PARAGRAPH ABOUT TABLING ITEMS A, C, AND D.
UM, AND SO DOES ANYBODY ELSE HAVE ANY, UM, CORRECTIONS TO THE MINUTES OR ADDITIONS OR ANYTHING? OKAY, THEN I WILL ENTERTAIN A MOTION, UM, TO APPROVE THE MINUTES.
MOVE, APPROVE THE A MINUTES WITH THE AMENDMENTS.
ANY OPPOSED? OKAY, MINUTES ARE APPROVED.
ITEM NUMBER FIVE, CONSIDER AND ADOPT A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH WATERFORD PROPERTY COMPANY L L C FOR THE ACQUISITION OF AXIS KESSLER PARK, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 2,400 FORT WORTH AVENUE, AND THE CREATION WITH THE TEXAS SECRETARY OF STATE OF A LIMITED LIABILITY COMPANY TO OWN THE DEVELOPMENT WITH THE CORPORATION AS THE SOLE MEMBER TO BE NAMED D H F C AXIS KESSLER PARK, L L C, AND APPROVING THE FORM OF A LIMITED LIABILITY COMPANY AGREEMENT.
ALL RIGHT, SO WE HAVE A PRESENTATION HERE PREPARED BY MR. SEAN ROSSI, WHO'S ALSO HERE, AND, UH, WE INVITE HIM TO COME UP AND, UH, BRIEFLY GIVE THE OVERVIEW HERE.
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UM, AND ON A WEIGHTED BASIS, UM, OVER AN ANNUALIZED BASIS, WE'RE, WE'RE SHOWING RENTAL SAVINGS OF JUST OVER $3,000, UH, PER UNIT, UH, PER HOUSEHOLD.
IF YOU DON'T MIND GOING TO THE NEXT SLIDE, AARON.
SO, ONE OF THE THINGS WE WANTED TO TOUCH ON, UM, IS YOU LOOK AT THE RESIDUAL VALUE, UM, AND THE RENTAL SAVINGS OF THE ASSET OVER THE TERM OF THE BONDS.
WE'RE SHOWING THAT THERE WILL BE JUST OVER 200, $3 MILLION OF EQUITY REVERTING BACK TO THE CITY, UM, AT THE, UM, AT THE END OF THE BOND TERM.
AND THAT THERE'S 67, JUST OVER 67 MILLION OF, OF RENTAL SAVINGS.
AND SO FROM A, UM, JUST A PURE MACROECONOMICS, UM, AND FINANCE STANDPOINT, THE RENTAL SAVINGS AND THE RESIDUAL EQUITY OR SIGNIFICANT, UH, IN THIS ASSET, YOU DON'T MIND GONNA THE NEXT SLIDE, AARON? SO WE'VE, THE NEXT SLIDES ARE SIMILAR TO WHAT WE TOUCHED ON BEFORE IN TERMS OF THE TERM TARGET DEMOGRAPHIC FOR THE ASSET.
UM, I DON'T NEED TO, UNLESS YOU WANT ME TO GO THROUGH THAT, UM, TO NECESSARILY GO THROUGH THAT.
UM, SO I'M PREPARED TO ANSWER ANY QUESTIONS OR PROVIDE MORE DETAIL, UM, IF YOU'D LIKE.
BUT, YOU KNOW, WE THINK IN TERMS OF ALL THE ASSETS THAT WE'VE SEEN IN DALLAS, IN TERMS OF THE NEED FOR AFFORDABLE HOUSING, THAT THIS LOCATION WILL BE WELL SERVED, UM, BY THIS PROPERTY.
AGAIN, THE, JUST THE PROJECT TEAM, WATERFORD PROPERTY COMPANY, UM, AT GOLDMAN SACHS IS OUR BOND UNDERWRITER.
AND THEN WE'LL HAVE GRAY STAR AS OUR PROPERTY MANAGER.
UM, THEN AARON, I THINK THE LAST SLIDE, IF YOU DON'T MIND, UM, THIS IS, UM, YOU'VE SEEN THIS SLIDE BEFORE.
THIS IS AN OVERVIEW OF EXISTING BOND FINANCED ASSETS THAT WE HAVE IN OUR PORTFOLIO.
UM, AND WITH THAT I CAN CLOSE OUT MY PRESENTATION.
I DON'T WANNA BE REDUNDANT FROM, FROM LAST MONTH'S HERE.
UM, SO, UH, I, I HAVE SOME QUESTIONS, BUT I'LL GO AHEAD AND OPEN THE FLOOR FIRST FOR ANYBODY ELSE WHO WANTS TO ASK SOME QUE QUESTIONS OR PROVIDE SOME DISCUSSION.
MR. ROSSON, HOW ARE YOU TODAY, SIR? DOING WELL, THANK YOU.
THANK YOU VERY MUCH FOR THE PRESENTATION.
HOW DID YOU ALL COME TO SOURCE THE PROPERTY? YEAH, SO THE SELLER, SHERMAN RESIDENTIAL, THEY'RE BASED IN, IN CHICAGO.
WE THROUGH, UH, ONE OF OUR FINANCIAL PARTNERS, UM, HAVE AN EXISTING RELATIONSHIP WITH, UM, UM, WHEN WE FIRST STARTED LOOKING AT, UM, ASSETS, UM, IN DALLAS FOR THIS PROGRAM, IT WAS, WE, BECAUSE WE KNOW THE SHERMAN RESIDENTIAL FOLKS, UM, AND MET WITH THEM IN CHICAGO, UM, WE HAD REACHED OUT TO THEM TO SEE IF THEY WANTED TO, TO SELL THE ASSET.
UM, IT'S AN OFF-MARKET TRANS TRANSACTION, AND IT WAS JUST THROUGH A RELATIONSHIP THAT, THAT WE HAVE.
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YOU WERE GONNA POTENTIALLY MOVE FORWARD WITH THE ACQUISITION, WHAT DOES THAT NORMALLY LOOK LIKE WITH REGARD TO YOUR TEAM DOING A SITE ASSESSMENT? YEAH, SO WE'VE, WE'VE ALREADY BEEN OUT TO THE ASSET.WE'VE DONE A FULL PROPERTY CONDITION ASSESSMENT.
SO FROM THE MOMENT THAT WE IDENTIFIED ASSET, WE'LL UNDERWRITE IT, UM, WE'LL GET WITH OUR FINANCING TEAM, WHICH IS ON OUR SIDE.
UM, REALLY, YOU KNOW, GOLDMAN SACHS IS A KEY INTEGRAL PART OF THAT IN TERMS OF THE BOND UNDERWRITERS, WE'LL GET WITH THEM.
WE'LL, AND THEN FROM THAT POINT, IF THE PROJECT UNDERWRITES, WE'LL TOUR THE ASSET.
UM, WE WENT OUT, UM, I TOURED THE ASSET WITH OUR, OUR ACQUISITION TEAM.
UM, ACTUALLY AARON TOURED IT WITH ME, UM, LAST MONTH.
AND THEN, UM, AND THEN AT THAT POINT, IF WE HAVE AN AGREEMENT, WE'LL MOVE FORWARD AND THEN WE FORMALLY KICK OFF DUE DILIGENCE.
SO TWO WEEKS LATER WE HAD OUR, OUR FULL DUE DILIGENCE TEAM GO OUT, DO THE, WE CALL IT THE PCA, BUT IT'S THE PROPERTY CONDITION ASSESSMENT, THE APPRAISAL AND THE FULL DUE DILIGENCE PROCESS BEGINS FROM THERE.
AND IN THAT DUE DILIGENCE PROCESS, WHEN THE TEAM BEGIN MOVES FORWARD, HOW, HOW MUCH DO YOU ALL ACTUALLY EVALUATE THE SURROUNDING AREA OR WHAT YOU IDENTIFIED TO BE THAT MARKET? YEAH, SO THAT'S A, SO IT'S A GREAT QUESTION AND I APPRECIATE YOU ASKING THAT.
SO, UM, WE HAVE JUST OVER 6,500 UNITS IN OUR PORTFOLIO OF THAT.
IT'S ABOUT TWO THIRDS OF THAT IS INCOME RESTRICTED IN SOME FASHION.
AND SO GETTING INTO THE MICRO MARKET, UM, AND GETTING INTO THE COMMUNITY AND UNDERSTAND THE DEMOGRAPHICS, UM, IS A KEY INTEGRAL COMPONENT.
UM, IRONICALLY, MY BEST FRIEND FROM HIGH SCHOOL IS A PHYSICIAN, UM, AT THE HOSPITAL JUST DOWN THE STREET.
UM, AND HE'S A RESIDENT OF DALLAS, UM, ACTUALLY SPENT A LOT OF TIME DRIVING AROUND THE NEIGHBORHOOD WITH HIM, TOURED HIS HOSPITAL.
UM, AND HE TALKED ABOUT THE NEED FOR WORKFORCE HOUSING, UM, FOR A LOT OF THE TECHNICIANS AND THE NURSES.
UM, AND, UH, AND SO WE'VE SPENT QUITE A BIT OF TIME REALLY, YOU KNOW, PEELING BACK THE ONIONS, SO TO SPEAK, IN TERMS OF THE, THE NEIGHBORHOOD AND, AND THE, AND THE DEMOGRAPHICS.
WITH, WITH THAT, HAVE YOU ALL, AS A TEAM DISCUSSED WHAT EFFECT HAVING RENTS IN A PARTICULAR MARKET WOULD HAVE ON SURROUNDING PROPERTIES AND ADDITIONAL DEVELOPMENT? YEAH, SO YEAH, SO THAT'S A, THAT'S A GREAT PHILOSOPHICAL POLICY QUESTION.
UM, AND, AND I THINK THAT PROBABLY PLAYS INTO, YOU KNOW, THE POLICY OF RENT CONTROL VERSUS NON RENT CONTROL.
UM, AND, YOU KNOW, TRADITIONAL INCOME RESTRICTED HOUSING, YOU KNOW, WHAT WE DO IS WHAT, WE'LL, WE'LL LOOK AT WHAT THE DEMAND IS FOR WORKFORCE HOUSING, AND WE'LL SEE WHAT THE DISCRETIONARY INCOME, UM, EXPENDITURES ARE FOR HOUSEHOLD.
MEANING THAT IF THERE IS A CERTAIN SEGMENT OF THE POPULATION THAT ARE HOUSING BURDEN, WHEN WE DEFINE HOUSING BURDEN BY SPENDING MORE THAN 35% OF THEIR MONTHLY INCOME, UM, ARE HIGHER ON RENT, BUT THERE'S A NEED FOR RENT RESTRICTED HOUSING.
UM, I'M NOT HERE TO DEBATE THE POLICY MERITS OF, YOU KNOW, INCOME RESTRICTED VERSUS NON-INCOME RESTRICTED, BUT WHAT WE DO IS WE LOOK AT THE NEED, AND WHAT WE'VE SEEN IS, IS THAT IN THIS AREA, UM, OF DALLAS, THERE'S A HIGH NEED FOR RENT RELIEF FOR RESIDENTS.
AND, AND REALLY IT'S THAT MIDDLE INCOME DEMOGRAPHIC.
AND AT THE MICRO LEVEL, HOW LARGE OF A RADIUS DO YOU EVALUATE WHEN YOU'RE LOOKING, DRILLING DOWN INTO THE NEED, IF YOU WILL? YEAH, SO WHAT WE'LL DO, SO I BEGAN MY CAREER AS A MARKET ANALYST.
AND SO WHAT WE, WHAT WE WOULD LOOK AT IS WE WOULD DEFINE, AND YOU DO A MARKET STUDY, THERE'S TWO MARKET AREAS.
THERE'S A PRIMARY MARKET AREA, WHICH IS THE, THE MARKET IN TERMS OF WHICH THE MAJORITY OF DEMAND EMANATES.
AND SO IF YOU LOOK AT DALLAS, YOU COULD SAY THAT A BIG CHUNK OF THE, THE DALLAS MSA IS THE PRIMARY MARKET AREA.
AND THEN YOU GO TO THE CMA, WHICH IS THE COMPETITIVE MARKET AREA.
AND THEN THAT'S REALLY WHERE THE PROPERTY IS THE MOST, IT HAS THE MOST COMPETITIVE SET OF COMPS, IF YOU WILL.
SO IF YOU LOOK AT, YOU KNOW, THE CMA FOR THIS PROPERTY, YOU KNOW, WE REALLY LOOK AT THE BISHOP ARTS DISTRICT, WE LOOK AT PARTS OF SOUTH DALLAS.
UM, AND SO IF YOU WERE TO DEFINE THAT AND QUANTIFY THAT, WE'RE PROBABLY LOOKING AT ABOUT A THREE MILE RADIUS FROM, FROM THE SUBJECT PROPERTY.
SO IF THERE'S NATURALLY OCCURRING AFFORDABILITY AROUND THE PROPERTY, WHICH I THINK IS THE CASE HERE, HOW DO YOU, UH, HOW DOES THAT AFFECT, UM, WHAT YOU THINK WOULD HAPPEN TO THE MARKET IF THIS PROPERTY BECOMES, UH, WORKFORCE HOUSING? YEAH, SO IF YOU LOOK AT THIS PROPERTY AND, AND HOW IT COMPARES
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TO, FOR INSTANCE, BISHOP ARTS, WHERE THERE'S A NUMBER OF NEW UNITS BEING BROUGHT ONLINE.SO YOU'RE SEEING NEW, NEW SUPPLY OF PLA A PROPERTY, AND THEN TO YOUR POINT, A NATURALLY OCCURRING OCCURRING AFFORDABLE HOUSING.
NOW WE REALLY CALL THAT THE, THAT THAT'S THE, THE CLASS B, B MINUS C.
SO ON A, UM, IF YOU LOOK AT WHERE OUR RENTS ARE GOING TO BE ON AN INCOME RESTRICTED BASIS VERSUS THE QUALITY OF THE PRODUCT, UM, WE'LL BE ON PAR WITH THAT.
BUT ESSENTIALLY WE'LL BE PROVIDING A LIVING EXPERIENCE THAT SOMEONE THAT POTENTIALLY COULD LIVE IN THAT NATURALLY GROWING AFFORDABLE HOUSING MAY CHOOSE NOT TO, MEANING THEY COULD LIVE THERE, THEY CAN AFFORD IT, BUT BECAUSE FOR INSTANCE, THEY'RE RAISING A FAMILY, THEY HAVE THEIR CHILDREN, THEY WANT A LITTLE BIT, LITTLE BIT HIGHER, UM, QUALITY OF, OF UNIT, THEY, THEY WOULD MOVE FARTHER AWAY.
AND SO THEN AT THAT POINT, FROM A POLICY PERSPECTIVE, YOU'D HAVE FURTHER COMMUTE TIMES AND YOU WOULD HAVE JUST A, THE QUALITY OF LIFE THAT'S MAYBE MORE DIFFICULT, MEANING MAYBE YOU'RE NOT SPENDING AS MUCH TIME WITH YOUR CHILDREN, YOU'RE NOT AS INVOLVED, UM, IN THE CIVIC COMMUNITY.
SO YOU'RE ESSENTIALLY MOVING AWAY TO HAVE A LONGER COMMUTE, TO HAVE THE SAME RENT VERSUS MOVING INTO ACCESS KESSLER PARK, BECAUSE NOW YOU HAVE A LIVING EXPERIENCE THAT'S A CLASSIFIED UNIT, YOU'RE GETTING RENT RELIEF.
SO NOW INSTEAD OF COMMUTING 30 TO 40 MINUTES, YOU'RE LIVING AT KESSLER PARK.
AND IF YOU LIVE, IF YOU WORK DOWNTOWN, YOU'VE GOT A MUCH SHORTER COMMUTE TIME, YOU'RE SPENDING MORE TIME WITH YOUR CHILDREN.
AND SO IT'S, IT'S A TRADE OFF.
UM, BUT I, I THINK THAT'S THE WAY THAT WE LOOK AT IT IN TERMS OF, YES, YOU CAN SAY THERE'S COMPARABLE RENTS, BUT THE PRODUCT IS AN APPLES TO APPLE.
AND SO AS YOU LOOK AT PROPERTIES IN BISHOP ARTS, WHEN YOU COMPARED RENTS FROM THE ACCESS TO WHAT YOU FIND IN BISHOP ARTS, WHAT, WHAT'S THE DIFFERENCE IN RENT? SO ARE WE TALKING ABOUT MARKET RENTS OR, UH, INCOME RESTRICTED MARKET RENT? SO I WOULD SAY THAT OUR MARKET RENTS ARE, UM, IN LINE WITH THE COMPETITIVE SET OF THE BISHOP ARTS.
UM, YOU KNOW, THERE'S SOME NEW PROPERTIES THAT ARE SLIGHTLY HIGHER, BUT IF YOU LOOK AT, I MEAN, THIS IS A 2017 VINTAGE ASSET, WE'RE, WE'RE PRETTY CLOSE ON PAR, UM, BASED UPON THE CMA ANALYSIS THAT WE'VE DONE.
SO I'M SURPRISED THAT YOU WERE COMPARING IT TO BISHOP ARTS BECAUSE I'M ON THE EAST SIDE OF DISTRICT SIX, AND IT SEEMS LIKE THE APARTMENTS GOING UP ON THE SINGLETON CORRIDOR ARE ACTUALLY CLOSER THAN BISHOP ARTS TO THIS PROPERTY.
YEAH, NO, THAT'S, SO, AND THEY'RE PART OF OUR COMPARATIVE SET AS WELL.
SO I, YOU KNOW, I, WE'VE, WE'VE LOOKED AT SOME OF THE, WE'VE LOOKED AT SOME OF THOSE CAMPS AS WELL, BUT MM-HMM.
HOW WAS THE COMPARISON TO THOSE PROPERTIES? BECAUSE I THINK THOSE PROPERTIES MATCH MORE CLOSELY THIS PROJECT.
SO THOSE RENTS ARE, I DON'T HAVE THE RENT SHEETS IN FRONT OF ME, BUT, UM, THEY WERE SLIGHTLY LOWER THAN, THAN WHERE, WHERE OUR PROPERTY IS, UM, BASED ON A, JUST A PER FOOT RENT.
UM, I'M HAPPY TO SHARE OUR MARKET STUDY WITH YOU.
UM, BUT I, I DIDN'T BRING THAT WITH ME, SO THAT WOULD BE INTERESTING, BECAUSE FOR ME, WHAT I HEAR A LOT FROM THE COMMUNITY ON OUR SIDE IS THAT THE THREE BEDROOM APARTMENTS ARE PROHIBITIVELY EXPENSIVE, UH, IN OUR AREA.
AND THAT'S, I THINK MOSTLY BECAUSE THE NEW PROPERTIES COMING UP ARE TAILORED TOWARDS MORE LUXURY RENTERS.
AND I WAS SURPRISED TO SEE THAT YOU'VE GOT ACTUALLY ALMOST A 20% DISCOUNT ON THREE BEDROOM APARTMENTS.
WAS THAT THE RIGHT NUMBER THAT I SAW? SO, YEAH, SO THAT'S MM-HMM.
SO, AND WE, THAT'S THE WAY THAT YOU, YOU NORMALLY SEE THE BIGGEST RENTAL DISCOUNTS AND INCOME RESTRICTED HOUSING ON THE LARGER, THE LARGER UNITS.
SO TO YOUR POINT, SO FAMILY THAT WANTS A THREE BEDROOM APARTMENT, UM, I MEAN, THE THREE BEDROOMS, YOU'RE GONNA SEE SIGNIFICANT DISCOUNTS.
AND THEN JUST TWO MORE QUESTIONS.
UM, THE FIRST THING WAS, ARE YOU GUYS OFFERING ANY ADDITIONAL SERVICES FOR YOUR RENTERS IN ADDITION TO THE AMENITIES THAT ARE ON THE PROPERTY? YEAH, SO I'M GONNA TAKE A STEP BACK AND THEN I'M GONNA ANSWER THAT SPECIFICALLY.
SO WE AS AN AFFORDABLE HOUSING OPERATOR, UM, AND WE DO TAX CREDIT, UM, DEVELOPMENT AND, AND INVESTMENT.
AND YOU KNOW, SO WE'LL WORK WITH NONPROFITS AND WE ALWAYS PROVIDE SERVICES.
THE THESE PROPERTIES WE WILL, WE WILL PROVIDE, AND WE'RE WORKING WITH GREYSTAR TO IDENTIFY, UM, CAREER TRAINING AND CERTAIN, UM, SERVICES IN TERMS OF AFTER SCHOOL TUTORS.
UM, THE BIG THING THOUGH IS, IS THESE ARE FINANCED DIFFERENTLY THAN TAX CREDIT PROJECTS.
MEANING THERE'S, THERE'S ONLY SO MANY FINANCING SOURCES, WHEREAS IN THE TAX CREDIT PROGRAM WHERE ESSENTIALLY YOU'RE USING FEDERAL TAX CREDITS, UM, POTENTIALLY DIFFERENT SUBSIDIES, YOU HAVE MORE SUBSIDIES THAT ARE PART OF THAT TRANSACTION TO HELP FINANCE THE SERVICES MM-HMM.
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ARE IN THE BOND PROGRAM.WE'RE ONE OF THE LARGEST OPERATORS THAT THAT WORKS WITH GREYSTAR.
UM, AND THAT'S ACTUALLY A MANDATE THAT, UH, THAT WE'VE PUT TOGETHER WITH THEM, IS TO TALK ABOUT HOW WE CAN PROVIDE MORE SERVICES TO, TO OUR RESIDENTS MM-HMM.
I'D BE INTERESTED IN HEARING, NOT NOW, BUT AT A LATER TIME, SOME MORE DETAILS ABOUT THE SERVICES BEING OFFERED.
I'M ACTUALLY, I'M HAPPY TO SET UP A MEETING WITH OUR, OUR TEAM AND MM-HMM.
AND AFTER THIS MEETING, I HAPPY TO, AARON'S GOT MY EMAIL, KYLE'S GOT MY EMAIL.
I'M HAPPY TO COME BACK AND, AND ACTUALLY IF YOU WANNA TOUR ONE OF OUR PROPERTIES, UM, YOU KNOW, UM, OR TOUR ACCESS KESSO PARK, WE'RE HAPPY TO TO SET THAT UP.
AND THEN MY SECOND QUESTION WAS, I TRIED TO DO LIKE A ROUGH SKETCH OF YOUR SOURCES AND USES, BUT I GOT A GAP OF LIKE 12 MILLION.
UM, SO I DON'T KNOW IF THE PROFORMA WAS SENT, DID I MISSED IT? OR IF AT A LATER TIME WE CAN KIND OF REVIEW, I THINK THE PROFORMA WAS IN THE APPLICATION DOCUMENT.
YEAH, IT, IT, IT WAS IN THE APPLICATION AND IT, I'M HAPPY AND IT, AGAIN, I WANT TO, I'M HAPPY TO ANSWER QUESTIONS.
I'M HAPPY TO SIT BACK DOWN, JOHN, JOHN, WAS THAT THE BOND ISSUANCE PREMIUM, POSSIBLY 12 MILLION GAP? CUZ THAT SOMETIMES THROW OFF WHAT THE YEAH, THAT'S EXACTLY RIGHT.
THAT'S EXACTLY, I DON'T KNOW IF SOMEBODY WANTS TO TRY TO EXPLAIN THAT IN BASIC TERMS. UH, SO WHY THAT IS SO, IT, IT'S REALLY THE WAY THAT WORKS IS, IS THAT WE, WHEN WE UNDERWRITE THESE PROJECTS, WE ASSUME A, WHAT WE CALL A, A BOND COUPON AND A YIELD.
UM, AND AGAIN, WE DON'T KNOW WHAT THE PRICING'S GONNA BE UNTIL THE DAY THAT WE PRICE OUR BONDS.
SO ESSENTIALLY WHAT WE'RE DOING, BECAUSE THESE, AND IT'S NO DIFFERENT THAN CANDIDLY, WHEN THE CITY OF DALLAS DOES A BOND ISSUANCE, YOU GUYS WILL DO A PUBLIC BOND OFFERING.
UM, AND IT'S NOT LIKE A TRADITIONAL MORTGAGE WHERE YOU'LL LOCK YOUR RATE AND THEN YOU'LL CLOSE, YOU'LL GO OUT AND, AND, AND WHEN I SAY YOU, MEANING, BECAUSE THIS IS A MUNI OFFERING, WE'LL DO THE SAME STRUCTURE THAT ANY MUNICIPALITY WOULD.
SO WE FORECAST INTO THE FUTURE WHERE WE THINK BOND RATES ARE GONNA BE, AND THEN WE LEAVE OURSELVES SOME DELTA, AND THAT'S CALLED A PREMIUM.
UM, TO KYLE'S POINT, MEANING IF THAT INTEREST RATES WERE TO SLIGHTLY GO UP BASED UPON WHERE OUR UNDERWRITE IS, THAT GIVES US CUSHION.
CONVERSELY, IF, LET'S SAY INTEREST RATES GO DOWN AND WE'VE SEEN BOTH SIDES OF THIS, THEN WHAT THAT DOES IS THAT MEANS THAT WE PAY DOWN THE BONDS QUICKER.
SO WE'VE, WE FINANCED A PROPERTY, UM, IN, IN CALIFORNIA, UM, IN SECOND QUARTER OF 2021.
AND THE MONTH THAT WE PRICED, WE SAW INTEREST RATE COMPRESSION OF APPELLATE 30% BASED UPON WHEN WE ORIGINALLY SUBMITTED OUR PROFORMA.
AND UNDER THAT, UM, UH, THE DAY THAT WE PRICED OUR BONDS, WE ACTUALLY, WE REDUCED FIVE YEARS OF TERM ON OUR BONDS.
SO THAT GOES TO PAY DOWN PRINCIPLE.
AND SO TO KYLE'S POINT, THAT'S THE, THE ISSUANCE PREMIUM THAT WE USE WHEN, WHEN WE UNDERWRITE THE BONDS.
CAN YOU TELL ME ABOUT YOUR COMPANY'S SUPPLIER AND CONTRACTOR DIVERSITY PROGRAM? SO, YEAH.
UM, SO WE, ON PROJECTS THAT WE BUILD, UM, YOU KNOW, WE, WE WORK WITH LABOR.
UM, WE'VE ENTERED INTO THE LABOR AGREEMENTS, UM, YOU KNOW, IS, ESPECIALLY IN THE TAX CREDIT WORLD, MEANING, UM, YOU KNOW, WE WILL LOOK FOR, UM, LIKE WE'LL HAVE CERTAIN, UM, FUNDING SOURCES, FEDERAL, UM, STATE GRANTS THAT ARE TIED TO CERTAIN, UM, LABOR INITIATIVES, DIVERSITY INITIATIVES.
AND THAT'S SOMETHING THAT WE TAKE, WE'RE EXTREMELY PRIDEFUL OF AND TAKE VERY SERIOUS, UM, WHEN YOU'RE BUYING AN ACQUISITION, YOU KNOW, IT'S A LITTLE DIFFERENT.
UM, WE'RE, WE'RE WORKING WITH GREYSTAR AS OUR THIRD PARTY PROPERTY MANAGER, AND SO WE RELY ON THEM FOR WHAT WE WOULD CALL KIND OF OUR SUBCONTRACTORS, MEANING IF THERE'S A, A LEAK AT THE BUILDING AND THEY, THEY'LL SUBCONTRACT WITH THE PLUMBING COMPANY, WE'LL REALLY RELY ON GREYSTAR BECAUSE THEY'RE THE LARGEST PROPERTY MANAGER, UM, IN THE WORLD.
AND SO THEY'VE GOT THAT LABOR BASE.
BUT THAT SAID, IN TERMS OF A COMPANY OF WATERFORD, BECAUSE WE BUILD AND DEVELOP OUR OWN PROJECTS, YOU KNOW, THAT'S SOMETHING THAT WE'RE VERY PRIDEFUL OF AND, AND WORK WITH LOCAL, UM, LABOR INITIATIVES AND DIVERSITY INITIATIVES.
AND HOW, HOW DO YOU ALL TRACK THAT AS A COMPANY AND ALSO HOW DO YOU TRACK IT AT THE LOCAL LEVEL FOR EACH PROJECT? SO, COUPLE THINGS.
SO WE HAVE NOT DEVELOPED ANYTHING YET IN TEXAS.
UM, AND WE ARE IN THE PROCESS OF, UM, OPENING UP, UM, AN OFFICE.
SO WE'VE GOT A, UM, OUR CONTROLLERS MOVING,
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UM, TO, TO LAKEWOOD.UM, AND SO WE'RE IN THE PROCESS OF, UM, OF BUILDING UP OUR DEVELOPMENT INITIATIVE.
SO IT'S DIFFERENT HERE, BUT IN CALIFORNIA, YOU KNOW, WHAT WE'LL DO IS WE'LL PARTNER WITH CITIES AND WE'LL SIGN PROJECT LABOR AGREEMENTS, UM, AND THAT'S REALLY TIED TO THE PROJECT.
AND SO WE'LL WORK WITH THE ELECTEDS AND THE POLICY MAKERS, UM, IN WHATEVER CITY THAT WE'RE WE'RE DOING TO HELP COME UP WITH THOSE CRITERIA.
AND I'M NOT TRYING TO BE VAGUE, BUT EVERY CITY IS SO NUANCED IN TERMS OF THE INITIATIVES THAT THEY'RE TRYING TO HIT, THAT WE, WE KIND OF WORK WITH THEM VERSUS US COMING AND DICTATING WHAT THOSE, THOSE INITIATIVES ARE GONNA LOOK LIKE.
BUT IF THAT'S SOMETHING, YOU KNOW, THAT I'M HAPPY TO SHARE KIND OF THE DIFFERENT APPROACHES THAT WE'VE TAKEN OR GROUPS THAT WE'VE PARTNERED WITH.
LIKE FOR INSTANCE, WE'VE GOT A PROJECT WE'RE DEVELOPING IN CITY OF LONG BEACH WITH THOUSAND UNITS, AND WE JUST ENTERED INTO A PROJECT LABOR AGREEMENT WITH LAUNA, WHICH IS A LOCAL UNION IN, IN LONG BEACH.
UM, BUT AGAIN, WE, IT KIND OF, IT'S, IT'S VERY BROAD BEYOND WHAT A CITY OR MUNICIPALITY MAY REQUIRE.
DO YOU ALL HAVE ANY INTERNAL STATED GOALS? YES.
SO WE'VE ALL READ ABOUT SOCIAL IMPACT INVESTING, UM, IN TERMS OF HOW YOU MEET IMPACTS AND AFFORDABILITY.
UM, AND SO AT THE SOCIAL IMPACT LEVEL, IT'S JUST E S G SOCIAL IMPACT.
UM, YOU KNOW, WHAT'S INTERESTING IS, IS THAT IN REAL ESTATE, THERE'S BEEN A BIG PUSH TO, TO IMPACT INVESTING, TO SOCIAL IMPACT.
UM, WHAT'S UNIQUE IS AT THE MULTIFAMILY LEVEL, THERE'S REALLY NEVER BEEN A DEFINITION OF WHAT CONSTITUTES, UM, E S G OR SOCIAL IMPACT INVESTING, MEANING IN THE TAX CREDIT WORLD, WE KNOW HOW WE DEFINE IMPACT.
IT'S, WE HIT, WE HAVE A REGULATORY AGREEMENT, WE HIT OUR AFFORDABILITY THRESHOLDS, AND WE CAN SHOW THAT WE'RE PARTNERING WITH NONPROFITS AND THE HYBRID SPACE OF AFFORDABLE AND MARKET RATE.
IF YOU LOOK AT THE E S G AND SOCIAL IMPACT INITIATIVES, EVERYTHING'S BEEN PREDICATED OFF THE UN.
AND SO WHAT WE'VE DONE IS WE'RE A FOUNDING MEMBER OF THE MULTIFAMILY IMPACT COUNCIL, WHICH IS A NATIONAL COUNCIL WITH SOME OF THE LARGEST INSTITUTIONAL MULTIFAMILY INVESTORS IN THE WORLD, SUCH AS THE BLACKSTONES, YOU KNOW, THE, THE LARGE COMPANIES.
AND WE ARE HELPING TO WRITE WHAT THOSE SOCIAL IMPACT INITIATIVES ARE FOR MULTIFAMILY, MEANING WHAT CONSTITUTES TRUE AFFORDABILITY IN THE MIDDLE INCOME SPACES.
TO YOUR POINT, YOU KNOW, WHAT, WHAT, UH, SERVICES SHOULD YOU BE PROVIDING KNOWING THAT YOU CAN'T OFFER THE FULL BREADTH OF SERVICES THAT YOU NORMALLY WOULD IN A TAX CREDIT PROJECT.
UM, BUT AT THE SAME TOKEN, YOU'RE OFFERING SOME SORT OF SERVICE.
AND SO, UM, IT'S BEEN FASCINATING.
IT'S BEEN A SIX MONTH PROCESS, UM, AND THERE'S 40 FOUNDING MEMBERS, UM, PRIDEFUL TO TELL YOU THAT WE'RE, WE'RE ONE OF 'EM.
AND SO WE'RE, WE'RE DRAFTING THAT RIGHT NOW.
AND IT'S SOMETHING THAT WE TAKE EXTREMELY SERIOUS.
IN SECTION FOUR OF THE APPLICATION, THERE'S A QUESTION WITH REGARD TO ASKED FOR INDIVIDUALS TO EXPLAIN WHAT, IF ANY PLANS THEY HAVE TO PROMOTE D H F C STOLEN.
THE B POINT SPECIFICALLY SAYS THE INVOLVEMENT OF MINORITY OF LOCAL FIRMS FOR DEVELOPMENT, CONSTRUCTION AND OR OPERATION OF THE PROJECT THROUGH THE USE OF SUBCONTRACTORS.
AND YOU ALL'S RESPONSE, WATERFORD WILL EMPLOY LOCAL CONTRACTORS FOR UNNECESSARY CONTRACTING SERVICES AND IMPROVEMENTS OF THE DURATION OF PROJECT.
IT DOESN'T NECESSARILY SPEAK TO MINORITY PARTICIPATION.
SO I WANNA CALL THAT TO YOUR ATTENTION.
AND, AND, AND I, I THINK THESE APPLICATIONS FOR, FOR THESE PROJECTS ARE, WE'RE, WE'RE OPERATING OFF KIND OF THE GLOBAL APPLICATION FOR THE H FFC.
SO I KNOW THAT THAT'S PART OF A TRADITIONAL TAX CREDIT MODEL.
SO WE'RE OPERATING WITHIN KIND OF THE CONFINES OF THE APPLICATION.
THAT'S, THAT'S, IT'S, THAT'S A VERY GOOD NUANCE AND, AND AGAIN, WE'RE HAPPY TO BE PART OF THAT AND BE AT THE FOREFRONT OF THIS WITH GRAYSTAR, UM, AS PART OF THIS PROGRAM.
SO I, UM, I ALWAYS LOOK AT THE TITLE YEP.
SO THAT WE DON'T HAVE ANY PROBLEMS. UM, AND I NOTICED A FEW THINGS.
UM, I NOTICED THAT, UM, THAT THERE IS A RESTRICTIVE COVENANT AGREEMENT WITH, I ASSUME, THE RETAIL CORRECT.
AND THERE'S ALSO SOMETHING CALLED REAL ESTATE DEVELOPMENT RIGHTS AGREEMENT ALSO WITH THE RETAIL.
SO COULD YOU TELL US A LITTLE BIT ABOUT WHAT THE RESTRICTIONS ARE THERE? SO MY UNDERSTANDING, AND WE'VE HAD, UM, WE'RE, AND WE'RE STILL IN THE MIDST OF, OF DUE DILIGENCE, AND SO OUR, OUR LEGAL COUNSEL, UM, IS IN THE PROCESS OF FINALIZING THE TITLE INJECTION LETTER.
UM, BUT ON THE RESTRICTIVE COVENANTS, IT, IT'S JUST RELATIVE TO, TO PARKING AND, AND HOW THAT INTER INTEGRATES WITH THE RETAIL ADJACENT ON THE DEVELOPMENT RIGHTS
[00:30:01]
AGREEMENT.AND AGAIN, I, I WANT TO SAY THAT I'M NOT AN ATTORNEY AND WE, WE ARE IN THE PROCESS OF SUBMITTING OUR TITLE OBJECTION.
MY UNDERSTANDING IS, IS THAT THERE'S A RESTRICTION ON POTENTIAL RETAIL DEVELOPMENT IN INTO THE FUTURE.
UM, AND, UM, YOU KNOW, WE DON'T LOOK AT THAT AS PROBLEMATIC SINCE THIS IS AN EXISTING MULTIFAMILY BUILDING.
UM, BUT AGAIN, UM, WE, WE WILL BE SUBMITTING OUR TITLE OBJECTION, AND THEN OBVIOUSLY WE'VE WORKED WITH BRACEWELL ON THAT AS WELL.
JUST WANTED TO MAKE SURE THERE WASN'T GONNA BE ANYTHING.
NO, JUMPING UP WITH THAT WOULD BE AN ISSUE.
IT IS A PD, UM, YOU KNOW, WHERE, SO I, I FEEL LIKE, UH, THAT ALONE WOULD KIND OF TEND TO KEEP IT AS MULTIFAMILY.
UM, BUT WHAT, JUST WANTED TO KNOW WHAT THE RIGHTS WERE OF THE RETAIL, UM, PROPERTY OWNER.
UM, OH, AND THEN I GUESS THIS, THIS GETS BACK TO WHAT YOU WERE SAYING.
I NOTICED THE VACANCY RATE RIGHT NOW IS 7.3%, WHICH SEEMS A LITTLE ON THE HIGH SIDE, AND IT WAS PARTICULARLY THE LARGE UNITS AS YOU WERE POINTING OUT.
AND DO YOU THINK THAT, THAT IT, THAT IT IS THAT LEVEL BECAUSE THE RENTS HAVE BECOME SOMEWHAT UNAFFORDABLE? CORRECT.
UM, AND WE LOOK AT, ONCE WE LOWER THE RENTS, THOSE WILL BE THE FIRST YEAR.
AND JUST GLOBALLY SPEAKING ACROSS OUR PORTFOLIO, WE SEE THAT, THAT THOSE, THE, THE LARGER UNITS ARE THE FIRST TO GO.
UM, AND THAT REALLY SPEAKS TO THAT PENANT DEMAND AND THE DEMOGRAPHIC THAT WE'RE, THAT WE'RE LOOKING TO, UM, TO MEET.
ANY OTHER QUESTIONS? I HAD ONE MORE QUESTION.
SO IT, IT, IT'S AN INDUSTRY STANDARD IN TERMS OF, UM, HOW WE'RE SIZING THE, THE BOND PROGRAMS. UM, AND REALLY WHAT WE DO TOO IS THE BOND INVESTORS.
UM, AND WE HAVE A LOT OF INTERACTION WITH OUR INVESTORS.
THEY WANT TO SEE THAT THERE'S SIGNIFICANT, UM, SKIN IN THE GAME, IF YOU WILL, BECAUSE AT THE END OF THE DAY, UM, THEY'RE INVESTING IN AN ASSET OF WHICH, UM, YOU KNOW, WE DON'T HAVE ANY OWNERSHIP AND WE'RE REALLY THE STEWARD ON BEHALF OF THE, THE HFC.
AND SO IT REALLY IS DERIVED ON, ON, ON HOW THEY SIZE THE BONDS.
SO WE'LL WORK WITH OUR UNDERWRITING TEAM AND THEN WE'LL, UM, THEY'LL REACH OUT TO OUR INVESTOR BASE.
AND LOOKING AT THE SIZE OF THE DEALS THAT YOU'VE DONE IN CALIFORNIA VERSUS THE ONES YOU'VE DONE HERE, PROPOSED ONES YOU'RE DOING IN TEXAS, MY ASSUMPTION IS THAT I WOULD SEE THAT THE FEE WOULD FOLLOW, THAT THE LARGER DEALS HAVE A MUCH HIGHER FEE, OR IS IT PRETTY STANDARD CORRECT.
THAT THE LARGE, IT'S BASED ON THE SIZE.
SO THE LARGER BUILDINGS WOULD, WOULD, I THINK SECRETARY PAGE WAS WANTING TO ASK OR SOMETHING.
UM, I WANTED TO JUST TAG ON TO WHAT, UH, DIRECTOR ALLEN WAS ASKING.
SO WHAT I'VE NOTICED IS SOME OF THESE DEALS IS THAT THE FEES APPEAR TO BE THE SAME, EVEN THOUGH THE DEAL SIZE WOULD BE SLIGHTLY DIFFERENT.
SO I WOULD THINK THERE WOULD EITHER BE A STRICT RATIO OR A FIXED PLUS A VARIABLE COMPONENT.
SO I THINK LIKE DIRECTOR ALLEN TRYING TO GET A BETTER HANDLE ON WHAT THE, AS WE'RE STARTING TO SEE A LOT MORE OF THESE DEALS WITH THE MARKET STANDARD IS FOR, FOR THESE, UH, FEES.
WE'RE HAPPY TO, TO, TO WORK TO, I MEAN, WORK WITH STAFF, UNDERWRITING TEAM ON THAT.
YOU KNOW, IT, IT'S LIKE ANYTHING, WHEN YOU PUT TOGETHER A POLICY, YOU KNOW, WE'RE HAPPY TO BE THERE AT THE TABLE WITH YOU GUYS THAT WE'VE JUST BEEN DEFERRING TO OUR, OUR BOND INVESTORS.
UM, NEXT QUESTION I HAD, FIRST IS A COMMENT I SAW IN HERE THAT THIS IS, YOU MENTIONED BEING ON A, A BUS LINE, DARK BUS LINE, WHICH I THINK IS GREAT.
ONE OF THE THINGS I'D LIKE TO SEE IN THE FUTURE ON ALL THESE IS NOT JUST IS IT ON A BUS LINE, BUT IS IT ON A HIGHER FREQUENCY BUS LINE? BECAUSE YEAH, AND, AND THIS ONE, IT'S, IT'S, THE ANSWER IS GOOD, BUT THE POINT I'M TRYING TO MAKE IS, AND IT DOESN'T APPLY THIS CASE, BUT IF YOU'RE ON A, IT SAYS YOU'RE ON A DUST DARK BUS ROUTE, BUT IF THE BUS ONLY RUNS ONCE AN HOUR, THE ONLY PEOPLE THAT ARE TAKING THAT BUS ARE PEOPLE WHO HAVE ABSOLUTELY NO OTHER CHOICE.
IT'S NOT A, YOU KNOW, IT'S NOT SOMETHING THAT ANY NORMAL PERSON WOULD WANT TO DO OR RIDE.
UM, IT'S ONLY BECAUSE THEY DON'T HAVE ANY OTHER MEANS OF GETTING AROUND HERE.
IT LOOKS LIKE IT IS A HIGH FREQUENCY BUS ROUTE, WHICH IS REALLY GOOD.
UM, WHICH MEANS THAT PEOPLE, YOU KNOW, MIGHT, WOULD BE A LOGICAL CHOICE FOR SOME PEOPLE TO TAKE THE BUS AS OPPOSED TO DRIVING A CAR, WHICH IS I THINK ONE OF THE THINGS THAT WE'RE, AS A CITY, ARE TRYING TO DO TO BUILD A MORE RESILIENT CITY.
SO, UM, WHEN I COMPLIMENT YOU ON, ON THAT, I THINK THIS IS A GOOD LOCATION FOR, FROM A TRANSIT STANDPOINT.
THIS, THIS SIDEWALKS APPEAR TO BE
[00:35:01]
BRAND NEW THERE.THERE'S BEEN A LOT OF WORK DONE ON THE WALKABILITY.
SO THIS IS A GOOD, GOOD LOCATION FROM THAT STANDPOINT.
UM, THE BUS STOP ITSELF IN FRONT OF THIS LOCATION IS JUST A SIGN IN THE GROUND.
UM, YOU, THE SIZE OF THIS PROJECT WOULD YOU BE WILLING TO WORK WITH, AND THERE'S A PROGRAM WITH DAR TO FUND AN IMPROVED BUS, BUS STOP THERE, HAS A SHELTER, HAS BENCHES, THERE'S, YOU KNOW, A TRASH CAN, THERE'S UPGRADED THINGS.
IT'S, AND IT'S A NOMINAL COST RELATIVE TO THE OVERALL PROJECT COST.
IS THAT SOMETHING YOU WOULD BE WILLING TO YEAH, NO, I THINK THE BIG THING, SO I APPRECIATE YOU YOU BRINGING THAT UP BECAUSE WE NOTICED THE SAME THING AND, AND SO THE ANSWER IS YES, WE WOULD LOVE, UM, WE CAN, WE WOULD LOVE TO BE PART OF THAT AND, AND WE WANT TO BE GOOD LONG-TERM PARTNERS WITH THE AGENCY.
THE, THE BIG THING I WOULD SAY IS THAT WHAT WE WOULD NEED TO DO IS BOOKEND WHAT THAT DOLLAR AMOUNT IS, UM, AS PART OF THE BOND ISSUANCE, UH, MEANING THE WAY THAT THESE, THESE, THESE TRANSACTIONS WORK.
UM, AND I GUESS IT'S, YOU KNOW, FOR ALL IS THAT WE DON'T HAVE ANOTHER BITE AT THE APPLE.
WE WOULD ESSENTIALLY PUT THAT INTO THE BOND ISSUANCE.
UM, AND, AND SO, UM, BUT YES, I MEAN, IF IT'S A NOMINAL AMOUNT, UM, WE HAVE AN ACCOUNTING APPOINTMENT.
I MEAN IT'S, IT'S UNDER A HUNDRED THOUSAND.
I CAN'T REMEMBER I, LAST TIME I SPOKE TO DART ABOUT THIS, IT'S, YOU KNOW, AND THERE'S VARYING PRICES FOR, SO IF WE WANTED TO DO, AND I'M HAPPY TO PROPOSE IT, HAVE A A HUNDRED THOUSAND DOLLARS CONDITION, YOU KNOW, IF YOU MAKE YOUR MOTION, IT WOULD GO TO A FUTURE IMPROVEMENT.
UM, WE'RE HAPPY TO, TO, TO HAVE THAT AS PART OF THE, THE, YEAH, I, I WOULD LIKE TO REQUEST THAT A HUNDRED THOUSAND DOLLARS RISK BE ALLOCATED TO, UH, A CONTRIBUTION TO DART TO, TO IMPROVE THE BUS STOP.
VICE PRESIDENT GARCIA, QUICK QUESTION FOR YOU.
UM, ON THE, ON THE 50% OF UNITS THAT YOU'VE SET ASIDE AT 80%, UM, A I RENT YEAH.
CAN YOU HAVE A GREATER PERCENTAGE OF THE THREE BEDROOMS GREATER THAN 50? OR DO WE START RENT INTO FAIR HOUSING ISSUES IF YOU HAVE MAYBE 75% OF THE 18 UNITS, UM, AFFORDABLE AND LOWER? THE NUMBER OF ONES THAT IT WERE SET AT EIGHT.
UM, I WOULD DE WOULDN'T DEFER TO BRACEWELL ON, ON, ON THAT.
UM, BUT, UH, I, I DON'T BELIEVE THAT THERE'S ANY ISSUES THERE.
BUT AGAIN, I, I'M NOT AN ATTORNEY, SO I DON'T WANNA SPEAK OUT OUT OF SCHOOL ON, ON, ON THAT, ON THAT PIECE.
UM, MY, WELL, I DON'T, YOU, YOU MENTIONED, I THINK IT WOULD, WOULDN'T IT ALL KIND OF DEPEND ON THE PROFORMA? CAUSE YOU'RE PROBABLY USING THE EXTRA INCOME.
WE JUST HAVE TO KIND OF LOOK AT THE PROFORMA CUZ YOU'RE GETTING THOSE HIGHER LEVEL RENTS, BUT IF THEY'RE NOT LEASING YEAH, I, IS THAT SERVING THE PROPERTY, IF THEY'RE VACANT FROM JUST A PRACTICAL STANDPOINT, YOU KNOW, WE SEE THOSE WILL BE THE, THE UNITS THAT MOVE FIRST INTO THIS PROGRAM.
AND THEN WE THINK THAT, THAT THAT'LL BE A LONGER TERM TENANT BECAUSE OBVIOUSLY IF YOU'RE SEEING THE SIGNIFICANT RENTAL DISCOUNT, THERE'S MORE INCENTIVE FOR YOU TO STAY LONG TERM.
THAT'S HOW WE'VE ALWAYS LOOKED AT IT.
IT'S MORE OF AN A, A JUST A NATURALLY, UM, UM, IT'S A NATURAL POLICY THAT BECAUSE YOU HAVE, UM, BUT THAT SAID, I, I THINK, YOU KNOW WHAT, I OPEN TO THE IDEA.
I I WOULD PROBABLY NEED TO, TO LOOK AT THE PERFORMA AND THEN, YOU KNOW, TALK TO LEGAL COUNSEL BEFORE I DO THAT.
BUT I, I THINK IN GENERAL WHAT WE SEE IS THAT THE BIGGER UNITS ACROSS OUR PORTFOLIO, THOSE HAVE THE LEAST AMOUNT OF TURNOVER ONCE YOU GET A UNIT OR A, A TENANT IN THERE.
I, I'D LIKE TO SEE Y'ALL TRY, I DON'T, I DON'T WANT TO ADD ANY CONDITIONS TO MOTION.
CAUSE I KNOW THERE COULD BE A LOT OF COMPLICATIONS, BUT IF Y'ALL COULD TRY TO MAKE THAT WORK.
AND I'M HAPPY TO BIGGER UNITS FOLLOW UP WITH YOU POST I'LL, I'LL GET YOUR CONTACT INFORMATION FROM AARON AND KYLE AND JUST SHOW YOU KIND OF THE DATA.
CAUSE I, I LOVE LOOKING, THE NICE THING IS, IS THAT WE'VE, WE'VE GOT SUCH A LARGE PORTFOLIO THAT WE CAN SHOW YOU THE DATA IN TERMS OF THE TRENDS.
AND I MEAN, WE JUST HEARD THE POLICY KIND OF THE, THE SUGGESTION.
SO WE WILL CERTAINLY TAKE A LOOK AT IT AND MAKE SURE THAT, YOU KNOW, WE CAN COME TO A ECONOMICALLY FEASIBLE THING TO, IF WE CAN MAXIMIZE THOSE, YOU KNOW, WE'LL SEE.
AND THEN, UH, ALSO CON CONFIRM WITH, UH, COUNCIL AS WELL, SO WE, IT HAS BEEN HEARD.
I HAVEN'T HEARD ANYTHING FROM, UH, FROM THE PEOPLE ON ZOOM.
DOES ANYBODY NEED TO BE RECOGNIZED? NO.
SO, UH, I WILL ENTERTAIN A MOTION FOR APPROVAL.
I'LL SECOND, JUST CAN I, UH, ADD A FRIENDLY AMENDMENT, UH, RELATED TO A HUNDRED THOUSAND DOLLARS FOR THE BUS STOP HERE.
[00:40:01]
OKAY.AND VICE PRESIDENT GARCIA, YOU'RE OKAY WITH THAT AMENDMENT? YES.
NOT IN FAVOR, UM, DIRECTOR, UH, WAIT, I'M TRYING TO SEE WHO'S HERE.
UM, VICE PRESIDENT GARCIA IN FAVOR, UH, DIRECTOR ELLIS IN FA IN FAVOR? I'M IN FAVOR, UH, DIRECTOR VERNON IN FAVOR, UM, DIRECTOR PAIGE.
OH, SORRY, SECRETARY PAIGE IN FAVOR AND, UM, TREASURER MARTINEZ.
YEAH, SHE WAS HERE ONE SECOND AGO.
SO, UM, DO WE, WE STILL HAVE A QUORUM, RIGHT? YEAH.
WE, WE HAVE SEVEN PEOPLE STILL.
SO I WOULD SAY THAT IT PASSES.
WE KIND OF GRILLED YOU A LOT THERE, SO THANK YOU SO MUCH,
UM, I'M GONNA SAY I THESE, UH, NEXT TWO RESOLUTIONS.
UM, ONE IS FOR THE ROSEMONT MEADOW LANE, AND THE OTHER ONE IS FOR THE, UM, POSITANO.
UM, I JUST WANTED TO SAY, OH, AND THE ASH CREEK IS ON HERE TOO.
UM, THAT, UH, I WAS THE PERSON WHO, UM, RAISED SOME QUESTIONS, UH, AT THE LAST MEETING, THESE WERE TABLED BECAUSE, UH, I NEEDED TO COME TO A BETTER UNDERSTANDING OF THE SELLER NOTE THAT'S INVOLVED IN ALL THREE OF THESE.
I THINK IT'S ALL THREE OF THESE, UM, UM, PROPERTIES.
AND SO, UM, WE DID HAVE TIM NELSON.
I DON'T KNOW, IS HE ON, TIM IS ON, IS ON, OR IS BRAXTON ON? ANYWAY, WE DID HAVE HILLTOP
AND THEY PROVIDED US WITH SOME VERY DETAILED, UM, ANALYSIS OF HOW THIS SELLER NOTE, UM, OPERATES AND, AND WHAT WOULD HAPPEN IF WE DIDN'T HAVE THE SELLER NOTE.
BECAUSE IF WE DIDN'T HAVE THE SELLER NOTE, WE WOULD HAVE TO HAVE, UM, HIGHER CONSTRUCTION FINANCING, I BELIEVE.
UM, ANYBODY CAN CORRECT ME IF I DIDN'T FOLLOW THIS PROPERLY.
BUT ANYWAY, THIS IS ALL TO SAY THAT I FEEL SATISFIED THAT I APPRECIATE THAT ADDITIONAL INFORMATION.
UM, IT WAS SENT OUT TO ALL OF THE BOARD.
UM, PERSONALLY, I FEEL SATISFIED, UH, UH, ON THAT ISSUE NOW.
UM, BUT I WILL OPEN IT UP TO ANY BOARD MEMBERS WHO STILL HAVE ANY QUESTIONS ABOUT IT.
YEAH, AND I FELT LIKE I MAY HAVE KICKSTARTED THE CONVERSATION TO AN EXTENT AS WELL WITH CONCERNS ABOUT PURCHASE PRICE VERSUS KIND OF WHERE THE MARKETS HAVE GONE IN THE LAST 12 MONTHS VERSUS WHAT THEY PAID AND WHAT WERE THE PARTNERSHIP HAS GONNA BUY, UH, THE DEAL AT, I THINK I JUST SORT OF HAD TO GET MY MIND WRAPPED AROUND THE SELLER NOTE.
UH, IN ORDER TO DO THAT, THAT IS ACTUALLY MY UNDERSTANDING, FAIRLY COMMON IN THE MARKETPLACE RIGHT NOW, IN ORDER TO ACHIEVE CERTAIN PRICING, SOFT SELLER FINANCING IS HAPPENING A LOT ON TOP OF THAT.
THIS IS A 15 YEAR, WELL, IT DOESN'T EVEN GET PAID, I THINK, FOR WHAT, 15 YEARS AT THE VERY BEST DURING A DOES IT? OKAY.
WELL, ANYWAYS, IT'S A SOFT SELLER NOTE.
IT'S A BLOW MARKET NOTE AS WELL WITH ONLY A 4% INTEREST.
SO THAT'S HIGHLY FAVORABLE TO THE PARTNERSHIP.
SO GIVEN WHAT HAS HAPPENED WITH CAPITAL MARKETS, THIS TYPE OF SELLER ARRANGEMENT WITH THE NEW PURCHASER, ALBEIT THEY'RE OUR PARTNER AS WELL.
BUT THAT BEING SAID, THAT IS FAIRLY COMMON TO MAKE NEW DEALS WORK.
AND GIVEN THAT WE'RE NOT GETTING A LOT OF AC REHABS, UH, ON OUR CABLE, I'M A BIG BELIEVER IN THE ACC REHAB PROGRAM AS WELL.
I THINK THAT'S THE BEST WAY TO PREVENT A SLUM FROM OCCURRING.
SO I LIKE THE PREVENTATIVE, UH, TAX RE SYNDICATION.
SO I THINK GIVEN THAT I'M VERY COMFORTABLE AS WELL, UH, SO I'M IN FAVOR.
UM, AND ANYBODY ELSE HAVE ANY COMMENTS ON THE ANALYSIS OF THE SELLER NOTE? I'M KIND OF SHORTING HERE BECAUSE WE DID HAVE THE PRESENTATION
[00:45:01]
ON ALL THREE OF THESE PREVIOUSLY AND WE TABLED IT.SO I GUESS I'M JUST, UH, UNLESS ANYBODY, UM, HAD DISCUSSION ON THESE, UH, PROPERTIES OTHER THAN IN REGARD TO THE SELLER NOTE, I'M KIND OF FEELING LIKE WE COULD DO A LITTLE SHORT CIRCUITING HERE BECAUSE WE HAD THE OPPORTUNITY TO MAKE ANY COMMENTS ABOUT THOSE SPECIFIC PROPERTIES AT THE LAST MEETING.
SO I'LL OPEN THE FLOOR IF ANYBODY HAS ANYTHING THAT THEY DIDN'T GET TO SAY AT THE LAST MEETING.
AND OTHERWISE, I THINK WE CAN KIND OF, UH, ZIP THROUGH THESE.
IS THAT OKAY WITH EVERYONE? OKAY.
SO FIRST ONE, ITEM NUMBER SIX, RESOLUTIONS FOR ROSEMONT AT MEADOW LANE, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 47 22 MEADOW STREET.
A, CONSIDER AN ADOPT A RESOLUTION APPROVING AN M O U WITH DECO PRESERVATION L L C FOR THE ACQUISITION AND REHABILITATION OF ROSEMONT AT MEADOW LANE, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT.
B, CONSIDER AN ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH THE CORPORATION AS THE SOLE MEMBER WITH THE TEXAS SECRETARY OF STATE TO BE NAMED D H F C, ROSEMONT MEADOW LANE DEVELOPER L L C AND APPROVING THE FORM OF A LIMITED LIABILITY COMPANY AGREEMENT.
C, CONSIDER AN ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH THE CORPORATION AS THE SOLE MEMBER WITH THE TEXAS SECRETARY OF STATE TO BE NAMED D H F C, ROSEMONT MEADOW LANE LANDOWNER, L L C, AND APPROVING THE FORM OF A LIMITED LIABILITY COMPANY AGREEMENT.
SO I WILL ASK FOR SOMEONE TO PUT A MOTION ON THE FLOOR TO APPROVE THIS, THESE RESOLUTIONS IN ITEM NUMBER SIX.
WAS THAT OKAY? AND I'LL SECOND.
UM, ALL RIGHT, SO, UM, LET ME GO THROUGH, UM, OKAY.
HOW DO YOU VOTE? OH, UH, IN FAVOR.
APOLOGIZE FOR JUST SPEEDING THROUGH HERE, BUT I FEEL LIKE SINCE THIS WAS TABLED, YOU KNOW, IT'S APPROPRIATE.
UM, VICE PRESIDENT GARCIA, I'M IN FAVOR.
FAVOR? OH, DID WE SKIP? HOW DID I DO THAT? OH, YOU'RE NUMBER ONE.
NOW, WHERE WAS I? UH, DIRECTOR ELLIS IN FAVOR? UM, I'M IN FAVOR, UM, DIRECTOR VERNON IN FAVOR, UM, AND, UH, SECRETARY PAGE IN FAVOR? AND DID WE GET TREASURER? MARTINEZ BETH.
ITEM NUMBER SEVEN, RESOLUTIONS FOR THE POSITANO.
A MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 25 19 JOHN WEST ROAD.
A, CONSIDER AN ADOPT A RESOLUTION APPROVING AN M O U WITH DECO PRESERVATION L L C FOR THE ACQUISITION AND REHABILITATION OF THE POSITANO, A MULTIFAMILY RESIDENTIAL DEVELOPMENT V.
CONSIDER AN ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH THE CORPORATION AS THE SOLE MEMBER WITH THE TEXAS SECRETARY OF STATE TO BE NAMED D H F C, POSITANO DEVELOPER L L C, AND APPROVING THE FORM OF A LIMITED LIABILITY COMPANY AGREEMENT.
C, CONSIDER AND ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH THE CORPORATION AS THE SOLE MEMBER WITH THE TEXAS SECRETARY OF STATE TO BE NAMED D H F C, POSITANO LANDOWNER, L L C, AND APPROVING THE FORM OF A LIMITED LIABILITY COMPANY AGREEMENT.
SO I WILL ENTERTAIN A MOTION FOR APPROVAL OF THESE RESOLUTIONS.
MOTION TO APPROVE DIRECTOR ALLEN SECOND, WHO WAS, WAS THAT DIRECTOR VERNON? YES.
YES, I DID HAVE ONE QUESTION ON THIS ONE.
UM, THE DEVELOPER FEE'S NOT GONNA BE PAID OFF IN 15 YEARS.
UM, CAN WE JUST GO OVER THAT FOR EVERYONE'S AND MY OWN EDUCATION IS ANYONE FROM DEVCO OR TIM NELSON? DO YOU WANNA JUST COMMENT ON THAT? HEY, THERE, THIS IS GRIFFIN, UH, FROM DEVCO.
UM, THE INTENT WILL BE THAT THAT DEVELOPER FEE, UH, WILL BE REPAID BY YEAR 15 AS WE'RE WORKING THROUGH, UM, YOU KNOW, WITH BOTH OUR DEBT AND EQUITY PARTNERS.
UM, WE'RE KIND OF WORKING TO FINALIZE THE SIZING OF THOSE, UH, SPONSOR SELLER
[00:50:01]
LOANS.AND SO, UM, THAT THOSE, THAT LOAN WILL BE UPTICK, UH, SLIGHTLY TO ENSURE THAT THE DEVELOPER FEE IS REPAID BY YEAR 15.
SO ALL OF THEM WILL NOW, WILL NOW BE PAID OFF BY YEAR 15, CORRECT? YEAH, THEY ALL WILL.
CAN YOU GET MY OTHER SHEET HERE, DIRECTOR ALLEN, I'M NOT MISSING YOU THIS TIME.
UM, UH, DIRECTOR FAROH IN FAVOR, UM, VICE PRESIDENT GARCIA, IN FAVOR, UH, DIRECTOR ELLIS.
IN, IN FAVOR? I'M IN FAVOR, DIRECTOR VERNON.
IN FAVOR, UH, SECRETARY PAGE IN FAVOR.
AND I STILL DON'T SEE TREASURER MARTINEZ.
OUR NEXT ONE IS CONSIDER AN ADOPT A RESOLUTION APPROVING AN AMENDED AND RESTATED M O U WITH DEVCO PRESERVATION L L C FOR THE ACQUISITION AND REHABILITATION OF ROSEMONT AT ASH CREEK APARTMENTS, A MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 26 0 5 JOHN WEST ROAD.
I GUESS, UM, DO WE, WHAT DO WE WANNA SUMMARIZE? WHAT GOT AMENDED ON THE MOU? YEAH, IT WAS REALLY TO INCLUDE A PROVISION LIKE WE HAD IN THE, UH, ROSEMONT AND THE, UH, POSITANO MOUS TO ACCOUNT FOR THE SELLER LOANS SINCE WHEN WE INITIALLY ENTERED INTO THIS OH, YEAR AND A HALF AGO.
ANYBODY HAVE ANY QUESTIONS ABOUT THAT? OKAY.
UM, SO, UH, I WILL ENTERTAIN A MOTION ON ITEM NUMBER EIGHT.
AND DO I HAVE A SECOND? SECOND.
DIRECTOR ALLEN IN FAVOR AND DIRECTOR FARROW IN FAVOR.
IN FAVOR, DIRECTOR ELLIS IN FAVOR? I'M IN FAVOR, DIRECTOR VERNON.
IN FAVOR, UM, SECRETARY PAGE IN FAVOR.
UM, AND I KNOW WE STILL HAVE AN AGENDA ITEM, BUT, UM, BEFORE EVERYONE SCATTERS
UM, AND I JUST, UH, I KNOW HE HATES THIS KIND OF THING,
BUT I REALLY, REALLY WANNA TAKE THIS OPPORTUNITY BEFORE EVERYBODY SCATTERS TO THANK YOU SO MUCH FOR ALL YOU HAVE DONE FOR THE CITY OF DALLAS AND IN PARTICULAR FOR THIS BOARD.
UM, I THINK THAT I, I WANNA SAY THAT I'M SO GRATEFUL FOR ALL OF OUR DIRECTORS AND EVERYONE WHO SERVES ON THIS BOARD BECAUSE WE, UM, A LOT OF IS, IS EXPECTED OF US IN OVERSEEING ALL OF THESE, UH, INITIATIVES FOR OUR, TO CREATE OUR MISSION OF AFFORDABLE HOUSING.
UM, BUT OUR PROFESSIONAL STAFF, IN ADDITION TO ALL OF THESE RESPONSIBILITIES THAT WE HAVE AS BOARD MEMBERS, THEY HAVE TO INTERACT WITH, UH, ALL OF THE CITY COUNCIL MEMBERS, WHICH CAN BE, UM, VERY STRESSFUL AND ALL OF OUR POTENTIAL DEVELOPERS.
AND MAKING SURE THAT, UM, THAT THE, UH, THAT OUR PUBLIC, UH, FACING WITH OUR DEVELOPER PARTNERS IS ALWAYS AT THE HIGHEST CALIBER AND PROFESSIONAL LEVEL.
AND, UH, KYLE HAS ALSO HAD TO, UM, MENTOR, BRING ON AND MENTOR.
WE HAVE, UH, ERIN, WHO IS WONDERFUL, AND JACKIE, WHO HAS BEEN WONDERFUL.
AND ONE OF THE REASONS THAT, THAT, THAT IS THE CASE IS BECAUSE KYLE HAS MENTORED THEM AND HAS MADE A, A, A GOOD, UH, WORK OPPORTUNITY FOR THEM.
AND, UM, AND SO I JUST WANNA SAY THAT, UM, I'M JEALOUS OF OAKLAND COUNTY
[00:55:01]
SO, SO, UH, MUCH COMMITTED TO OUR GOAL OF AFFORDABLE HOUSING, WHICH HE WILL NOW, UH, BE DOING FOR THEM.AND, UM, I WISH THAT WE COULD JUST MOVED ALL YOUR FAMILY MEMBERS TO DALLAS
I TO, I EXPLAINED TO THEM THAT NOBODY HAS TO LIVE IN THAT WINTER, BUT THEY DIDN'T.
THEY DIDN'T, THEY DIDN'T GO FOR IT.
ANYWAY, I DON'T KNOW IF ANYONE ELSE WANTS TO ADD, BUT, UM, BUT I JUST WANTED TO MAKE SURE THAT HAPPENED BEFORE WE ADJOURNED.
I KNOW WE STILL HAVE ONE AGENDA ITEM TO GO.
UM, YEAH, I'M, UH, I'VE LOVED WORKING WITH YOU HERE, AND I MEAN, IT'S MADE, UH, MY LIFE A LOT EASIER BE, AND, UM, I THINK THIS DEPARTMENT, UH, YOU KNOW, WITHIN THE CITY OF DALLAS, I TALKED TO COUNCIL PEOPLE, OTHER PEOPLE INVOLVED IN CITY HALL.
THIS IS ONE AREA WHERE PEOPLE ARE ALWAYS LIKE, THIS IS A GOOD, YOU KNOW, WHERE CITY HALL GETS A LOT OF CRITICISM FOR NOT FUNCTIONING WELL IN DIFFERENT AREAS, JUST DYSFUNCTION.
THIS IS AN AREA THAT I THINK PEOPLE, GENERALLY, THE COUNCIL MEMBERS THAT I KNOW PERCEIVE AS FUNCTIONING WELL.
UM, IT MAKES MY JOB A LOT LESS STRESSFUL, AND I LIKE, I LIKE WORKING WITH YOU PERSONALLY.
AND I'M GONNA BE VERY SORRY TO SEE YOU GO.
SO I LOOKED UP IMMEDIATELY, UH, WHEN I SAW, YOU KNOW, WHERE YOU'RE GOING.
I WAS TRYING TO FIGURE OUT A STRATEGY, HOW TO, UH, DISRUPT THAT AND, UH, KEEP, KEEP YOU HERE, BUT COULDN'T FIGURE IT OUT.
AND I, EARLIEST MORNING WHEN I WAS LOOKING AT, UH, THE EMAIL YOU SENT OUT, I SENT IT TO ONE, A COUNCIL MEMBER WHO RESPONDED BACK IN FOUR MINUTES AND WAS LIKE, YEAH, THIS IS A BIG LOSS TO THE CITY OF DALLAS.
BUT, UH, I'VE ENJOYED WORK WITH YOU AND, UH, THANKS, THANKS A LOT.
AND I THINK YOU HAVE DONE A GREAT JOB OF MENTORING OTHER, UH, PEOPLE HERE, OTHER STAFF.
SO I FEEL, FEEL GOOD ABOUT THE FUTURE OF THIS ORGANIZATION, BUT, UH, THANK YOU VERY MUCH.
I'M GONNA ADD ON AS WELL, I THINK WHEN I FIRST CAME ON, YOU KNOW, I'M IN THE REAL ESTATE INDUSTRY AND THE MULTIFAMILY INDUSTRY AS WELL, AND YOU KNOW, WHEN I CAME ON, I SAW SOME OF THESE PACKAGES AND I DIDN'T UNDERSTAND Y TECH.
UH, AND YOU KNOW, KYLE'S THE ONE THAT KIND OF TALKED ME THROUGH IT.
I ALMOST FEEL LIKE HE'S THE ONE THAT SORT OF TAUGHT ME ABOUT THE HOUSING AND YOU KNOW, HOW IT WORKS.
UH, YOU KNOW, AND JUST KIND OF, HE WAS JUST SO PATIENT, YOU KNOW, WITH ME AND JUST KIND OF WALKING ME THROUGH IT, WHICH I THOUGHT WAS AMAZING.
BUT ON TOP OF THAT, ATTENDING THESE CONFERENCES WITH KYLE, YOU KNOW, WE ALL KNOW THAT DALLAS HAS A LITTLE BIT OF A COMPLEX HISTORY OF AFFORDABLE HOUSING, YOU KNOW, AND I THINK SEEING THESE DEVELOPERS, HOW THEY FOUND SOMEONE WITHIN THE CITY TALK, YOU KNOW, THAT KIND OF GUIDE THEM THROUGH HOW THE CITY OF DALLAS THINKS WHAT THEIR MISSIONS ARE, AND THEN BE ABLE TO FIT WHAT THEY WANT TO ACCOMPLISH WITHIN THE MISSION OF THE CITY OF DALLAS.
HE, YOU KNOW, HE WORKED THAT MAZE FOR THE DEVELOPERS IN THE WAY THAT THEY UNDERSTOOD TO WHERE THAT WAS IN PLACE.
PRIVATE DEVELOPERS, WE NEED, YOU KNOW, TO HAVE PARTNERSHIP LIST TO, YOU KNOW, MAKE SAFE, CLEAN, AFFORDABLE PLACES TO LIVE FROM THE CITIZEN OF DALLAS.
HE CRACKED THAT FACE FOR THESE PRIVATE DEVELOPERS AND MADE THIS PLACE A, A PLACE WHERE DEALS COULD GET DONE, WHICH I, YOU KNOW, WHEN I WENT TO MY FIRST CONFERENCE WITH HIM, WE'RE GONNA STARTED.
THAT WAS NOT THE PERCEPTION AS WELL.
SO I THINK WHAT HE ACCOMPLISHED, WHAT HE ACCOMPLISHED FOR THE CITIZENS OF DALLAS, WHAT HE ACCOMPLISHED FOR THE ORGANIZATION HAS JUST BEEN ABSOLUTELY REMARKABLE.
I CAN TELL YOU, I MEAN, WITHIN THE INDUSTRY, HE IS VERY RESPECTED.
IF THERE'S NOBODY ELSE, AND
BUT I, I CERTAINLY APPRECIATE EVERYBODY'S HARD WORK AND SERVICES TO THIS BOARD.
UH, YOU KNOW, I, I CAN'T DO ANY OF THIS WORK.
I CAN'T GET ANY OF THIS STUFF DONE WITHOUT YOUR SUPPORT, YOUR LEADERSHIP, YOUR GUIDANCE TO MAKE SURE THAT WE'RE APPROVING THE RIGHT PROJECTS.
AND, UH, I HAVE A WHOLE TON OF STAFF THAT I COULDN'T POSSIBLY FUNCTION WITH, UH, FROM MY BOSS, DIRECTOR OF THE DEPARTMENT, NERA TO ERIN QUINTO, JACKIE SCHROEDER, AND OUR ADMIN TEAM BACK THERE.
EVERYBODY, I, YOU KNOW, WE, CAN WE GO, GO THROUGH THE WHOLE THING.
BUT, YOU KNOW, I, I HAVE CERTAINLY LOVE MY TIME HERE.
UM, HAVING A RECENT CHILD AND TRYING TO GET HIM BACK UP TO BE NEAR HIS FAMILY IS THE, THE REASON WE'RE, WE'RE, WE'RE MAKING THE MOVE.
UH, I'D LOVE TO STAY DOWN HERE AND CONTINUE BUILDING OFF OF WHAT WE HAVE, BUT I'M CONFIDENT THIS BOARD AND YOUR LEADERSHIP WILL CONTINUE TO DO, UH, GREAT THINGS FOR THE CITY.
AND I'M CONFIDENT THAT WE HAVE THE STAFF IN PLACE AND OUR, OUR THIRD PARTY ADVISORS HERE THAT WILL BE ABLE TO, YOU KNOW, MAKE SURE THAT WE'RE CONTINUING TO DO A GREAT WORK.
WE HAVE A WHOLE BUNCH OF DIFFERENT PROGRAMS THAT WE CAN, THAT WE'RE GONNA BE STARTING ON WITH THE, UH, ONCE WE GET SOME TIME TO, TO REALLY DIVE INTO THE, THE FOR SALE, NOFA DEVELOPMENT.
UH, OUR NEXT ITEM I'M EXTREMELY PROUD OF, I NEVER THOUGHT THIS WOULD BE AS SUCCESSFUL IN THE FIRST QUARTER THAT WE OPERATED, BUT BE ABLE TO PROVIDE 90, UH, MORTGAGES IN OUR
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FIRST KIND OF QUARTER OF FULLY OPERATIONAL ON OUR, OUR MORTGAGE PROGRAM.BE ABLE TO PROVIDE 90 LOANS TO, UH, LOW TO MODERATE INCOME FAMILIES TO PURCHASE A HOME.
UH, IT'S, IT'S JUST GREAT BECAUSE WE FOCUS SO MUCH ON RENTAL HERE.
SO, UH, I'LL JUST END WITH, UH, THANK YOU ALL FOR YOUR SERVICE.
UM, AND I WILL, UH, EVERYBODY HAS MY EMAIL AND MY, MY CELL PHONE NUMBER, SO PLEASE DO NOT HESITATE TO CALL WITH ANY QUESTIONS.
AND IF ANYBODY WANTS TO, UH, WORK AND BUILD ANY PROJECTS UP IN, UP IN MICHIGAN, PLEASE, UH, GIVE ME A CALL AS WELL.
AND I'M SORRY THAT WITHOUT, WITHOUT THAT FAREWELL, WE PROBABLY WOULD'VE BEEN ABLE TO HIT AN HOUR LONG MEETING, BUT HERE WE ARE, IT'S 1 0 4, SO WE CAN QUICK DO A BRIEFING AND OVERVIEW ON THE, UH, SINGLE FAMILY, UH, PRO OR THE MORTGAGE LOAN PROGRAM, AND, UH, GO FROM THERE.
AND I APOLOGIZE, I'M, I GOT ATTACKED BY HOLLAND OVER THE WEEKEND AND I'M STRUGGLING TO CONTINUE TO TALK HERE.
BUT, UH, ONCE AGAIN, THANK YOU EVERYONE.
AND WE'RE GONNA WANNA SEE LOTS OF PICTURES OF BENJAMIN
ITEM NUMBER NINE, UPDATE ON THE STATUS OF THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS MORTGAGE PROGRAM.
UM, I GOT THE FLOOR AND NOW I JUST WANNA SAY THANKS TO KYLE TOO.
HE'S DEFINITELY BEEN, UH, A GREAT MENTOR HERE AND WE'RE, WE'RE GONNA MISS HIM.
UM, BUT THROUGH THE ITEM AT HAND, JUST REAL QUICK, WE WANTED TO REPORT ON WHAT HE MENTIONED.
YOU KNOW, WE'VE, WE'VE BEEN ABLE TO UTILIZE THIS PROGRAM, GIVE IT TO US, UM, THROUGH T D H C A.
UH, THESE ARE BONDS THAT WE'VE ISSUED THAT, THAT HAVE BEEN USED FOR, UM, FINANCING FOR HOMES FOR, FOR PEOPLE WHO NEED IT.
AND, UH, YOU KNOW, THAT'S 90 FAMILIES THAT HAVE BEEN ABLE TO PURCHASE A HOME.
AND YOU CAN KIND OF SEE HOW, HOW IT SHAKES OUT WITH, WITH THIS PDF, THIS IS IN YOUR BOARD PACKET.
UM, IT EVEN KIND OF BREAKS IT DOWN BY ZIP CODE.
SO IF YOU GUYS KNOW ANY OF THOSE, UM, YOU CAN KIND OF SEE WHERE, WHERE ALL THEY'VE, UH, SPREAD OUT AROUND THE CITY.
AND SO, UM, THIS IS SOMETHING THAT, LIKE KYLE SAID, WE'RE, WE'RE REALLY PROUD OF, UM, WE'RE GONNA CONTINUE DOING, AND, AND IT'S JUST BEEN, UH, WILDLY SUCCESSFUL.
DOES ANYBODY HAVE ANY QUESTIONS FOR ERIN ON THAT UPDATE? OKAY, WELL, WE DIDN'T MAKE ONE HOUR, BUT I THINK IT WAS WORTH IT TO TAKE A LITTLE TIME.
AND, UH, AND I WILL CALL THE MEETING ADJOURNED AT ONE OH SIX.