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[00:00:01]

THIS MEETING TO ORDER,

[Dallas Housing Finance Corporation on May 10, 2023.]

AND I WILL ASK MR. QUINTO TO DO THE ROLL CALL, PLEASE.

ALL RIGHT.

UM, WHEN YOU HEAR PRESIDENT BRAD, HEY AARON, I DON'T THINK PEOPLE ARE BEING ABLE TO HEAR YOU ON YOUR MICROPHONE.

WHATEVER YOU HAVE SET UP OVER THERE.

CAN YOU GUYS HEAR ME? NOW? YOU CAN HEAR ME? OKAY.

UH, SECRETARY GARCIA.

I'M HERE.

TREASURER MARTINEZ.

THAT'S YOU.

SAY HERE.

ALL RIGHT.

SHE'S HERE.

DIRECTOR ANTHONY, PAGE.

HERE.

DIRECTOR JOSHUA VERNON.

HERE.

DIRECTOR DAVID ELLIS HERE.

DAVID, ARE YOU HERE? I'M HERE.

CAN YOU HEAR ME? YEAH.

YOU'RE VERY FAINT.

YOUR VOLUME IS VERY LOW.

CAN YOU HEAR ME NOW? WE CAN HEAR YOU THOUGH.

ALL RIGHT.

DIRECTOR PRISMA GARCIA HERE.

DIRECTOR JESSICA LEBO.

I DIDN'T SEE HER.

I DID NOT SEE HER.

DID ANYONE ELSE? ALL RIGHT.

DIRECTOR TATIANA FARRELL HERE.

DIRECTOR CHRISTOPHER LEWIS.

HERE.

DIRECTOR BELIN BANKS DID NOT SEE HER.

DIRECTOR CLAIRE DOER HERE AND DIRECTOR PATTY COLLINS HERE.

ALL RIGHT.

BACK TO YOU, MARCY.

OKAY.

I WILL NOW, UM, ASK FOR ANYONE WHO'S HERE WITH PUBLIC TESTIMONY ON ITEMS FOUR THROUGH NINE TO, UM, PLEASE, UM, MAKE YOURSELF KNOWN.

UH, WE DON'T HAVE ANYONE HERE IN THE ROOM WITH US, BUT I'LL WAIT A FEW MINUTES TO SEE IF ANYBODY IS HERE FOR ANY PUBLIC TESTIMONY.

OKAY.

I DON'T HEAR ANYTHING, SO I DON'T THINK WE HAVE ANY PUBLIC TESTIMONY TODAY.

UH, THE NEXT ITEM ON THE AGENDA IS THE APPROVAL OF THE MINUTES FOR THE APRIL 12TH, 2022, CITY OF DALLAS HOUSING FINANCE CORPORATION MEETING.

UM, AND SO I WILL CALL FOR A MOTION TO APPROVE AND A SECOND, AND THEN WE CAN HAVE ANY DISCUSSION.

I'LL MOVE TO ACCEPT THE MI, THE MINUTES AS WRITTEN.

GREAT.

AND DO I HAVE A SECOND? WHO WAS THAT? DIRECTOR LEWIS.

THANK YOU.

OKAY.

UM, IS THERE ANY DISCUSSION OR ARE THERE ANY CORRECTIONS? NO.

LOT OF SILENCE IN THIS ROOM TODAY, .

OH, EVERYBODY'S SEATING.

UM, OKAY.

SO I'LL JUST ASK, UH, ALL IN FAVOR TO SAY AYE.

AYE.

AYE.

AYE.

AYE.

ANY OPPOSED? ANY ABSTENTIONS? OKAY.

MOTION PASSES.

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

AND I WILL TURN IT OVER.

HEY, MAR, MARCY, I THINK WE SHOULD DO FIVE AND SIX TOGETHER SINCE OKAY.

WE'RE COMBINING ITEMS FIVE AND SIX.

ITEM SIX IS TO 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 $55,217,249 AND 67 CENTS, AND APPROVING ALL OTHER MATTERS IN CONNECTION THEREWITH.

OKAY.

SO WE HAVE TALKED ABOUT THIS BEFORE.

UM, THIS IS THE ITEM WHERE WE ARE BASICALLY GONNA BE THE CONDUIT FOR THE T D H C A STATE PROGRAM FOR TEXAS HOME BUYERS.

UM, HOPEFULLY YOU CAN ALL HEAR ME HERE.

UM, SO LIKE WE SAID, THIS IS ADMINISTERED BY T D H C A, SO WE DON'T HAVE TO DO ANYTHING.

UM, ADMINISTRATIVELY IT'S TARGETED TO FIRST TIME HOME BUYERS AND VETERANS.

UM, THE IDEA HERE IS TO

[00:05:01]

PROVIDE BELOW MARKET, UH, MORTGAGES, AND THERE'S ALSO A DOWN PAYMENT ASSISTANCE OPTION, UM, EITHER AS A FORGIVABLE OR DEFERRED SECOND LIEN.

SO THE INTEREST RATES VARY DEPENDING ON THE, UH, AMOUNT OF DOWN PAYMENT ASSISTANCE.

AND THEN YOU HAVE A COUPLE DIFFERENT, UM, TYPES HERE AS YOU HAVE TARGETED AND NON-TARGETED.

AND SO WE'RE GONNA ACTUALLY JUST MOVE TO THE NEXT SLIDE HERE IF IT WILL MOVE WITH ME.

THERE WE GO.

SO OUR INCOME LIMITS HERE, ONE TO TWO PERSON HOUSEHOLDS ARE UP TO $89,000 FOR A HUNDRED PERCENT AAMI, THREE OR MORE PERSONS AT 115% AAMI, AND THAT'S UP TO $102,000 OF INCOME.

THEN MOVING DOWN TO YOUR TARGETED AREAS, YOU CAN EXTEND THAT AFFORDABILITY UP TO A LITTLE MORE TO 120 AND 140% FOR THREE OR MORE PERSONS.

AND NOW OUR PURCHASE LIMITS IN THE NON-TARGETED AREA IS UP TO $360,000.

AND THEN FOR OUR TARGETED AREAS, IT'S UP TO 440.

SO THIS COULD POSSIBLY BE A PRETTY BROAD, UH, REACHING PROGRAM DEPENDING ON WHO APPLIES.

UM, THESE ARE THE INTEREST RATES AS OF MAY 6TH.

NOW, THESE, A COUPLE WEEKS AGO WERE SIGNIFICANTLY LOWER, BUT AS YOU ALL KNOW, IF YOU'VE BEEN TRACKING RATES, UM, THEY'VE GONE UP ACROSS THE BOARD.

SO THESE ACTUALLY AREN'T THAT BAD COMPARED TO, UH, WHAT ME AND KYLE LOOKED AT TODAY AS AVERAGE HOMEOWNER RATES.

UM, IT'S ABOUT 6% ON AVERAGE.

SO, YOU KNOW, YOU MIGHT GET SLIGHTLY BELOW AVERAGE, BUT THIS IS ALSO COMBINING IT WITH DOWN PAYMENT ASSISTANCE AND, YOU KNOW, ACCESS TO THESE, THESE LOANS, WHEREAS YOU MIGHT NOT HAVE BEEN ABLE TO PREVIOUSLY.

SO, UM, WE ARE DOING, UH, OR HELPING THESE PEOPLE OUT HERE.

YEAH.

AARON, ONE ONE POINT I WANNA MAKE IS THAT WHEN WE DID BRIEF THIS BEFORE THEY T D H C A AND THE HOME BUYER PROGRAM DID HAVE, UH, THE FORGIVABLE SECOND LIEN, BUT WHAT HAS HAPPENED SINCE THE LAST TIME WE BRIEFED IT IS THEY'VE SINCE NO LONGER OFFERED THAT.

AS YOU CAN SEE, THE, THAT THERE'S A LOT OF NOT APPLICABLES UP, UP THERE ON THAT, UM, DOWN PAYMENT ASSISTANCE, UH, THE DEFERRED SECOND LIEN IS NOW WHAT THEY'RE, THEY'RE PROVIDING.

UM, OBVIOUSLY THE HOME BUYER DOESN'T HAVE TO PAY THAT, PAY THAT BACK, UH, UNLESS THE PROJECT'S SOLD OR THEY SEE THROUGH AND PAY OFF THE FINANCING FOR THE 30 YEARS.

SO JUST WANTED TO MAKE NOTE OF THAT.

UM, THESE RATES ARE, ARE STILL PRETTY, PRETTY, YOU KNOW, MARKET RATE AND I, I, AND THEN IT ALSO INCLUDES THE DOWN PAYMENT ASSISTANCE IN THERE.

I THINK IT'S ABSOLUTELY SOMETHING, UH, WE SHOULD STILL BE CONSIDERING.

SO I JUST WANTED TO POINT THAT OUT.

GO BACK.

PROCEED, AARON.

THANKS, KYLE.

UM, AND YOU KNOW, SINCE RATES ARE CHANGING CONSTANTLY NOW, UM, YOU NEVER KNOW THEY COULD BRING BACK THOSE, UH, FORGIVABLE SECOND LIENS.

UM, WE DON'T KNOW.

THIS IS JUST AS OF MAY 6TH, SO DEPENDS ON WHAT THEY WANNA DO THERE.

UM, SO HOW DOES IT WORK? SO WE APPLY FOR A PRIVATE ACTIVITY BOND CAP.

UM, THEY ISSUE 'EM, AND SO BASED ON OUR CURRENT VOLUME CAP, 20 MILLION WOULD BE AVAILABLE TO PROVIDE MORTGAGES.

AND SO JUST KIND OF HELP YOU GUYS OUT HERE BASED ON THE AVERAGE PURCHASE PRICE.

YOU KNOW, WE COULD HELP ABOUT 66 HOME BUYERS, UM, THROUGH THIS PROGRAM.

SO THE FUNDS ARE DISTRIBUTED THROUGH TD HCAS NETWORK OF LENDERS.

SO WE DON'T HAVE TO GO AND DO, YOU KNOW, A LOT OF OUTREACH TO TRY TO SIGN UP LENDERS UNDER THIS.

I MEAN, T D H D ALREADY HAS PEOPLE APPROVED READY TO DO THIS.

UM, WE JUST HAVE TO APPLY FOR THE BOND CAP.

UM, SO YEAH, LIKE IT SAYS 1300 LENDERS HAVE BEEN APPROVED ALREADY.

UM, WE CAN ALSO GROW THAT.

I MEAN, I KNOW SOME OF YOU ARE REALTORS AND SO YOU PROBABLY WOULD BE ABLE TO, UH, ADD TO THAT, THAT NUMBER THERE.

ALL RIGHT.

SO DO WE WANNA PAUSE HERE AND TAKE A VOTE ON THESE TWO ITEMS BEFORE WE GO THROUGH THE DEVELOPMENT FUND? OR DO WE WANT TO GO THROUGH IT ALL TOGETHER? WE MIGHT AS WELL MOVE ON THIS ITEM TOGETHER.

I'M THINKING YEAH, IT ALL TOGETHER, WE'RE TOGETHER.

YEAH.

CUZ WE HAVEN'T, YEAH.

OKAY.

UM, WHAT ABOUT IF WE HAVE QUESTIONS? OH, YEAH, WE, THIS IS TIME FOR QUESTIONS.

YEAH, WE'LL DO, WE'LL PUT A MOTION ON THE FLOOR AND GET A SECOND AND THEN DO DISCUSSION IF THAT'S OKAY.

ALL RIGHT.

UM, SO WE ALSO HAVE A FOR SALE DEVELOPMENT FUND THAT WE'RE CONTEMPLATING HERE.

UM, SO THIS IS IN ADDITION TO THE HOME BUYER ASSISTANCE CENTER.

I THOUGHT WE WERE, WE NEED TO TAKE FIVE AND SIX RIGHT NOW.

YEAH, RIGHT.

OKAY.

IS THAT WHAT YOU SAID? SORRY, I MISUNDERSTOOD HERE.

YEAH, THOSE TWO.

SO, SO THE DISCUSSION, I MEAN, THE PRESENTATION FOR THOSE TWO IS, YEAH.

OKAY.

YEAH.

SO LET'S, UH, LET'S DO A MOTION AND A SECOND AND THEN WE'LL HAVE QUESTIONS.

UH, DOES ANYONE WANNA MAKE? AND I, AND WE'LL COMBINE FIVE AND SIX.

[00:10:01]

SO DOES ANYONE WANNA MAKE THAT MOTION? I'LL MAKE THE MOTION TO COMBINE, TO APPROVE FIVE ITEMS. FIVE AND SIX.

I'LL SECOND.

WAS THAT DIRECTOR LEWIS? YES.

THANK YOU.

AND DO I HAVE A SECOND? I SECOND.

I SECOND.

B MARTINEZ.

OKAY.

TREASURER MARTINEZ.

OKAY, NOW WE'RE READY FOR QUESTIONS.

AND I'M SORRY, THESE MAY BE QUESTIONS THAT YOU ALL MAY HAVE ANSWERED BEFORE, BUT HOW, HOW DO WE ACTUALLY GET A LIST OF WHO GETS TO PARTICIPATE IN THIS? I MEAN, HOW IS THIS MARKETED AND WHO GETS TO BE ON THE LIST? IS IT JUST FIRST COME, FIRST SERVE? IS IT, UM, DO WE DO ANY KIND OF PROACTIVE, UM, OR, YOU KNOW, UM, DO WE DO ANYTHING THAT'S PROACTIVE OR, OR EVEN JUST MAKING SURE THAT THERE'S A WIDE RANGE OF PEOPLE THAT GET TO PARTICIPATE IN THIS PROGRAM? YEAH, SO THE PROGRAM'S SET UP THAT I THINK ALL THE, THAT THOSE THAT QUALIFY, UH, BASED ON INCOME, IT'S OPEN, OPEN TO THEM AS WELL AS FIRST TIME HOME HOME BUYERS AS WELL.

SO, UH, OUR OUTREACH WILL GO TO OBVIOUSLY THE LENDING COMMUNITY IN THE CITY.

THOSE THAT HAVE SIGNED UP WILL MAKE SURE THAT WE KNOW THAT THOSE LENDERS THAT WE ARE NOW OPEN FOR BUSINESS TO PROVIDE THESE LOANS THROUGHOUT THE CITY.

BUT THEN ALSO, UH, YOU KNOW, WORK WITH OUR LENDERS THAT PARTICIPATE IN OUR, OUR IN-HOUSE HOUSING DOWN PAYMENT ASSISTANCE PROGRAM.

THEY'RE THE LENDERS THAT ARE, THAT ARE VERY OPEN AND, AND WANT TO WORK WITH, UH, UH, LOW TO MODERATE INCOME HOME BUYERS.

SO WE KNOW THAT THEY SHOULD BE, UH, VERY EXCITED ABOUT THIS PROJECT.

AND THEN WE CAN ALSO, I DON'T KNOW IF ANYBODY WATCHED OUR OFFICE OF ECONOMIC DEVELOPMENT, UH, ECO DEV COMMITTEE THAT WE NOW ARE WORKING ON A RESPONSIBLE BANKING ORDINANCE IN THE CITY.

SO TO PROVIDE, UH, ADDITIONAL LOANS THROUGHOUT ALL PARTS OF THE CITY.

I THINK WE'LL HAVE A LOT OF, UH, EXCITEMENT TO BE ABLE TO HAVE A PROGRAM LIKE THIS FOR THOSE BANKS TO ALSO PARTICIPATE.

SO WE CAN MAKE THIS KNOWN TO OUR COUNCIL MEMBERS, UH, OTHER COMMUNITY GROUPS, OTHER TRADE ORGANIZATIONS, UM, REALTORS, ASSOCIATIONS, I'M SURE MANY OF YOU ARE, WOULD BE MUCH MORE THAN HAPPY TO, UH, PROVIDE, YOU KNOW, SOME MARKETING FOR THAT AS WELL.

SO, UM, WE'LL HAVE A, WE'LL CAST A WIDE NET AND TRY TO MAKE SURE THAT WE HAVE, UH, AS MANY PEOPLE PARTICIPATE AS POSSIBLE.

BUT IT SEEMS TO ME THAT WITH ONLY 66, UM, HOMEOWNERS THAT COULD PARTICIPATE, THAT THIS IS GONNA BE HIGHLY OVERSUBSCRIBED, BUT MAYBE I'M CLUELESS.

I MEAN, IT'S, SO, GEORGE, UH, RODRIGUEZ, OUR BOND COUNCIL, I KNOW THAT WE ARE ALLOCATING 55 MILLION, BUT WE WANTED TO START WITH A FIRST TRANCHE OF 20 MILLION TO MAKE SURE THAT, UH, WE'RE UP AND RUNNING AND NOT LEAVE ANY UNAVAILABLE.

CAN YOU, CAN YOU SPEAK TO THAT GEORGE, OR HOW WE'RE LIMITED IN THIS AMOUNT OF, OF, OF MONEY AND FUNDS TO USE? YOU CAN, SORRY.

OKAY, SORRY.

I'VE GOT TWO, I HAVE 10 MUTE ON, SO ME SURE.

I WAS ON, BUT, AND GEORGE, CAN YOU, YOU CAN DO UP TO TURN YOUR, GEORGE, CAN YOU TURN YOUR VIDEO ON AS WELL? OH YEAH.

HOLD ON.

HERE WE GO.

SO WE HAVE A, YOU KNOW, UP TO 55 MILLION THAT CAN BE OBTAINED, YOU KNOW, 55 MILLION AND CHANGE THAT CAN BE OBTAINED, BUT WE CAN DO ANY AMOUNT LESS THAN THAT.

AND YOU KNOW, THE QUESTION IS, IS WHEN YOU APPLY FOR THAT CAP, I MEAN, YOU CAN, YOU CAN REQUEST THE ENTIRE 55 MILLION, BUT THEN DECIDE TO DO A LESSER AMOUNT.

AND IF THAT'S THE CASE, THEN YOU, YOU CAN DO THE LESSER AMOUNT.

UM, AND YOU CAN DO IT EVEN IN, UH, IN TRANCHES WHERE YOU, YOU HAVE THE 180 DAYS FROM THE RESERVATION DATE.

SO, YOU KNOW, IF THE 20 MILLION FLEW OUT THE WINDOW AND YOU'RE ABLE TO TO WORK SOMETHING OUT WITH T D H C A FOR THE BALANCE, THEN YOU CAN DO THE BALANCE.

I CAN'T REALLY SPEAK OF MECHANICALLY IF THAT REALLY IS POSSIBLE.

MAYBE TIM NELSON OR BRAXTON COULD, COULD SPEAK AS TO THAT, BUT THAT, THAT WOULD BE THE PROCESS IS YOU COULD TAKE IT DOWN, YOU KNOW, AT LEAST THEORETICALLY IN, IN TRANCHES.

WELL, I STILL DON'T THINK THAT ADDRESSES THE FACT THAT I WOULD THINK THAT IF THE WORD IS OUT THAT THIS IS GONNA BE HIGHLY OVERSUBSCRIBED.

SO MY QUESTION IS HOW DO WE MAKE SURE THAT, YOU KNOW, THE,

[00:15:01]

YOU KNOW, SAVVIEST WE'VE GOT IN LINE FIRST, WE'RE GONNA, YOU KNOW, GET ALL OF OUR CLIENTS.

LET'S JUST SAY I'M A REAL ESTATE AGENT AND I'VE GOT, YOU KNOW, FIVE DIFFERENT CLIENTS, OR EVEN I'M A BROKER AND I'VE GOT, YOU KNOW, 20 CLIENTS ALL GET THIS PROGRAM.

I'M JUST WONDERING IF WE ARE THINKING THROUGH THE FACT THAT IT COULD BE OVERSUBSCRIBED AND HOW ARE WE GONNA BE SURE THAT'S REALLY FAIRLY DISTRIBUTED? YEAH, I MEAN, WE DON'T REALLY HAVE ANY CONTROLS IN PLACE TO PICK OUT WHO GETS TO PARTICIPATE IN THIS PROGRAM.

IT'S A LOT LIKE ALL OF OUR OTHER CITY PROGRAMS WHERE WE CAN'T TARGET BY ANY SORT OF NEIGHBORHOOD OR SOCIOECONOMIC DELINEATION, UH, KIND OF HOW HUD AND C CDBG WORKS.

LIKE WE CAN'T, WE CAN'T DO RACE BASED FOR OUR HIP HIP PROGRAM.

I'M NOT SUGGESTING THAT WE ACTUALLY TARGET, I'M SUGGESTING THAT WE HAVE SOMETHING THAT FEELS FAIR, LIKE A LOTTERY, THE WAY THE SCHOOLS, FOR EXAMPLE, DO WHERE MORE PEOPLE WANNA SEND THEIR KIDS TO ONE PARTICULAR SCHOOL AND THEY HAVE SOME KIND OF LOTTERY.

MM-HMM.

, I JUST HAVE WE THOUGHT THROUGH THAT.

THAT'S ALL I'M SAYING IS THAT I WOULD ASSUME THAT THERE, AND MAYBE I'M MAKING THE WRONG ASSUMPTION, SOMEBODY CORRECT ME IF I'M WRONG, BUT THAT WOULD BE MY ASSUMPTION THAT THIS WOULD BE OVERSUBSCRIBED.

WELL, UH, THIS IS, UH, BRAXTON PARSONS FROM US.

WAIT, I HAVE A QUESTION.

GO.

DO WE MAKE THE DECISION, DO WE MAKE THE DECISION AS TO WHO GETS EACH ONE OF THESE OR DOES THE T D H C A? YEAH, THIS IS ADMINISTERED AT THE STATE LEVEL.

AND I DON'T KNOW IF BRAXTON WAS GONNA MENTION SOMETHING HERE, BUT THIS ISN'T LIKE THE, THE POINT OF THIS IS TO TRY TO TAKE OUR, OUR ADMINISTRATIVE RESPONSIBILITIES OUT OF THIS BECAUSE IT'S A STATE ADMINISTERED PROGRAM, AND WE DON'T NECESSARILY HAVE THE STAFF TO MANAGE EACH AND EVERY SINGLE ONE OF THESE APPLICATIONS THAT, THAT COMES IN.

THAT'S THE KIND OF WHY I THINK IT'S ATTRACTIVE TO A LOT OF PEOPLE.

AND IT, IT DOES CUT DOWN ON, ON OUR HAVING TO, YOU KNOW, PROCESS EACH, EACH ONE INCOME QUALIFY EACH EACH APPLICANT.

SO IT'S A, SO LIKE I SAID, IT'S AT THE, IT'S AT THE STATE LEVEL.

IT'S, IT WASN'T THAT I WAS SUGGESTING THAT YOU ALL NEEDED TO ADD ANY ADMINISTRATION.

IT'S JUST, YOU KNOW, HOW YOU, IF YOU HAVE A WAITING LIST AND HOW YOU PULL OFF THE WAITING LIST.

BUT IF WE'RE NOT ADMINISTERING THAT, WHAT EXACTLY ARE WE VOTING ON? WELL, WAIT, IS THIS FOR THE CITY OF DALLAS ONLY APPLICANTS? YEAH, THEY'D HAVE, IT'D HAVE TO THE CITY OF DALLAS.

OKAY.

IN MY EXPERIENCE, MY, WAIT, WAIT, WAIT, WAIT.

HANG ON.

WHO IS, DOES GEORGE HAVE THE ANSWER TO THIS? YEAH, WELL KEEP IN MIND THAT THIS IS NOT A STANDALONE 20 MILLION BOND ISSUE THAT T D H C A WOULD BE ISSUING.

IT IS PART OF A MUCH, MUCH LARGER BOND ISSUE BY T D H C A, WHICH TDH C A ALREADY SERVICES THE CITY OF DALLAS.

IT'S JUST THAT THIS IS A WAY FOR THE D H F C TO USE VOLUME CAP THAT IS AVAILABLE TO IT TO GIVE A LITTLE BIT OF ENHANCEMENT FOR THE CITY OF DALLAS.

BUT T D H C A HAS BEEN AND WILL CONTINUE TO MAKE LOANS IN THE CITY OF DALLAS.

IT'S JUST, IN THIS CASE, THEY WOULD BE AVAILING THEMSELVES OF CAP VOLUME CAP THAT WAS AVAILABLE TO THE D H FFC.

SO THEY'RE NOT HAVING TO USE THEIR OWN VOLUME CAP FOR THAT PURPOSE.

SO GEORGE, WHO MAKES THE DECISION ABOUT WHO GETS EACH OF THESE LOANS? IT T DH C A DOES, BUT WHAT, UH, MY UNDERSTANDING, AND BRAXTON CAN CORRECT ME IF I'M WRONG, IT'S, IT'S KIND OF MORE LIKE A FIRST IN, FIRST OUT TYPE PROCESS IS THAT WHEN THEY, WHEN THEY START RECEIVE MAKING LOANS IN THE CITY OF DALLAS, THOSE IMMEDIATELY WILL BE COUNTED AGAINST, YOU KNOW, IN THIS CASE, IF IT'S 20 MILLION, THEN THAT'S HOW THEY WILL DO THAT IS THAT THE FIRST 20 MILLION OF LOANS MADE IN, IN THE CITY OF DALLAS WOULD BE ALLOCATED TO THIS 20 MILLION THAT WAS MADE AVAILABLE THROUGH THE D H F C.

CORRECT.

AND THIS IS BRAXTON PARSONS FROM HILLTOP.

AND JUST TO ADD ON TO WHAT GEORGE IS SAYING IS, UH, THAT IF, IF WE, IF IT, IF WE DID GO IN FOR SAY, 20 MILLION, THEN T D H A WOULD ALLOCATE THE FIRST 20 MILLION OF THEIR LOANS TO THIS PROGRAM, BUT THEY WOULD NOT STOP ISSUING LOANS AT THAT POINT.

SINCE THEY ARE A STATEWIDE SERVICER, THEY WOULD CONTINUE TO, TO ISSUE LOANS IN THE DALLAS AREA AND, AND THROUGHOUT THE STATE.

UM, I KNOW ONE OF THE OTHER QUESTIONS WAS, IS 20 MILLION ENOUGH AND T D H C A, THEY, THEY TYPICALLY KIND OF, THEY KIND OF GUIDE THE, THE AMOUNTS THAT THE RESERVATION WILL BE, UH, REQUESTED

[00:20:01]

BY LOOKING AT THE PREVIOUS LOANS FROM THE PREVIOUS THREE YEARS THROUGH THE CITY OF DALLAS.

SO THEY'RE, THEY'RE ALREADY LOOKING AT WHAT TYPE OF DEMAND IS, IS IS THERE TO MAKE SURE THAT THEY, THEY RECEIVE A LOAN OR, UH, A RESERVATION AMOUNT THAT WOULD MATCH ADEQUATELY TO THAT.

SO ARE YOU SUGGESTING THAT WE SH SHOULDN'T DO LIKE JUST 20 MILLION AT FIRST, THAT WE SHOULD JUST DO THE 55 ALL AT ONCE? I, I WOULD SUGGEST INDUCING FOR 55, SO THAT WAY YOU HAVE THE INDUCEMENT IN HANDS AND THEN LET T D H C A GUIDE AS TO HOW MUCH THEY WOULD LIKE TO USE.

AND THEN YOU WOULD HAVE THAT INDUCEMENT READY, UH, ALREADY IN HAND TO USE THE REMAINING BALANCE FOR A SECOND RESERVATION WHEN NEEDED.

AND WHAT'S THE TIME LIMIT? LIKE THEY HAVE TO GIVE THIS MONEY OUT BY WHEN, UH, TYPICALLY FOR THE, UH, THE 20 MILLION, UM, UH, LOANS, IT, IT WOULD BE THREE YEARS.

SO THAT, THAT SHOULDN'T BE AN ISSUE TO, TO GIVE THAT, THAT AMOUNT OUT TO, TO, YOU KNOW, A METROPOLITAN, LIKE, LIKE, YOU KNOW, DALLAS.

YEAH.

SO THE 20 MILLION IS JUST WHAT WE HAVE PUT IN THERE BASED ON WHAT YOU HAD ANTICIPATED T D H C A SAYING WE SHOULD PROVIDE TO THE PROGRAM, BUT WE ARE, WE ARE INDUCING THE ENTIRE 50, OUR ENTIRE VOLUME CAP FOR THIS PROGRAM, CORRECT? YES, THAT'S CORRECT.

AND SO YOU, AND ALSO IN ADDITION TO THAT, KYLE, WE'RE, WE'RE ACTUALLY WAITING TO SUBMIT THE APPLICATION SO THAT WE CAN BE WITHIN 180 DAYS OR LESS THAN 180 DAYS FROM YEAR END.

SO THEN WE CAN CARRY FORWARD.

SO IF YOU GO FOR THE 55 MILLION BUT ONLY WANNA DO 20, YOU CAN STILL CARRY FORWARD ANY PORTION THAT YOU DID NOT USE.

SO, UM, IT COSTS THE SAME TO DO 55 MILLION AS IT DOES 20 MILLION.

SO IT SEEMS THAT YOU, YOU DO THE ENTIRE AMOUNT AND THEN CARRY FORWARD, UM, AND THE AMOUNT THAT YOU WOULDN'T BE USING THIS YEAR.

WELL, AND, AND JUST TO MAKE SURE EVERYONE IS, AND YOU'RE SAYING, ARE YOU SAYING THAT, THAT THIS WILL COVER THREE YEARS? IN OTHER WORDS, WE DO THIS NOW AND THEN WE CAN'T GO BACK FOR THREE YEARS? OH, NO, YOU CAN GO BACK.

UH, YOU JUST HAVE TO REINDUCE, UH, FOR, FOR ANOTHER AMOUNT, UM, TO, TO DO ANOTHER RESERVATION ONCE THE 55 MILLION IS EXHAUSTED THROUGH THE PAD PROGRAM.

HOW, HOWEVER, JUST TO BE CLEAR, THE, THE RESERVATION IS, IS GONNA BE TRANSFERRED TO T D H C A AT THE 35 DAY FILING.

SO THE CARRY FOUR WOULD BELONG TO T D H C A AT THAT POINT R.

IS THIS FOR THE 2022 PROGRAM YEAR OR THE 23 PROGRAM YEAR? THIS IS FOR THE 22 PROGRAM YEAR.

OKAY.

SO WE CAN STILL GET VOLUME CAP FOR THIS YEAR AND DON'T HAVE TO WAIT AND GO INTO THE LOTTERY AND ALL THAT? YES.

TYPICALLY FOR SUBE ONE TRANSACTIONS, YOU DON'T HAVE TO DEAL WITH THE LOTTERY THERE.

THERE'S SUCH A LOW DEMAND FOR HFCS TO DO THIS.

UH, THEY, THEY JUST CAN COME IN AT ANY TIME DURING THE YEAR.

OKAY.

I HAVE A QUESTION.

UH, HOW DID WE COME UP WITH THAT 66 PARTICIPANTS CALCULATION? AGAIN, IT WAS JUST BASED ON AN AVERAGE LOAN OF 300,000, UH, BASED ON WHAT WE THOUGHT T D H C A WAS GONNA RECOMMEND, UH, FOR THE, FOR THE 20 MILLION.

FOR THE 20 MILLION.

OKAY.

SO IN TOTAL, THE NUMBER IS ACTUALLY CLOSER TO LIKE A HUNDRED AND SEVENTY ONE, A HUNDRED SEVENTY TWO PEOPLE THAT THE WHOLE 55 MILLION COULD HELP.

IS THAT ACCURATE? OKAY.

JUST WANNA MAKE SURE I UNDERSTOOD.

THANK YOU.

I I HAVE A QUESTION ON THE HOUSEHOLD INCOME LIMITS.

WHEN IT SAYS ONE TO THREE PEOPLE, IS THAT, DOES THAT INCLUDE CHILDREN? ARE, ARE YOU ENTITLED TO MORE OR LESS MONEY IF THERE'S KIDS LIVING IN THE HOUSE? YEAH, IT'S BASED ON, UH, CHILDREN.

YEAH.

I THINK IT'S JUST THE LOGIC IS YOU HAVE MORE PEOPLE, YOU NEED A BIGGER HOUSE, SO YOU'RE ENTITLED TO MORE MONEY.

YEAH.

AND THEN I JUST WANNA MAKE SURE, OKAY.

ANY OTHER QUESTIONS I ASKED YOU? UH, QUESTIONS.

UH, WELL, MY FIRST ONE IS A, UH, COMMENT.

UM, HOPEFULLY WE'LL HAVE SOME TYPE OF, UH, ONE PAGER INFORMATION TO GET OUT TO THE CURRENT, UM, MULTIFAMILY, UM, COMPLEXES THAT WE HAVE COLLABORATED WITH TO ENSURE LIKE THOSE FAMILIES CAN POTENTIALLY GET IN TO MOVE INTO A HOME SO WE CAN MAKE THOSE CURRENT, UM, APARTMENT, I MEAN, UM, APARTMENTS AVAILABLE FOR PEOPLE THAT NEED 'EM.

OBVIOUSLY THERE'S STILL GONNA BE A NEED DUE TO THE SHORTAGES OF INVENTORY, BUT I THINK WE CAN KIND OF HELP HAVE A LITTLE WORKFLOW, UH, WITHOUT HAVING TO DEVELOP SO MANY MULTI-FAMILIES, EVEN THOUGH I KNOW THAT IT IS KIND OF A INCOME GENERATING, UH, PROCESS FOR, FOR, FOR THE, UH, H F C.

BUT

[00:25:01]

I, I THINK THAT'LL, THAT'LL HELP, YOU KNOW, GOING FORWARD.

UM, MY SECOND QU THEN MY FIRST QUESTION IS REGARDING THE 5 MILLION, UH, I GUESS THAT'S USED FOR LIKE GAP FINANCING, UH, FOR THESE DEVELOPMENTS.

SO HOW, HOW WAS THAT NUMBER? UM, WHERE DID THAT NUMBER COME FROM? I THINK THAT'S ON THE NEXT ITEM, ACTUALLY.

YEAH, THAT'S OKAY.

IS THAT SEVEN? YEAH, WE CAN, WE CAN TALK THROUGH THAT NEXT.

YEAH.

OKAY.

OKAY.

AND, AND, AND WE CAN ABSOLUTELY, UH, PROVIDE TO ALL OF OUR, OUR PARTNERSHIP PROJECTS, OUR MULTIFAMILY PROJECTS, PROVIDE THEM WITH THIS INFORMATION ABOUT THE PROGRAM, HOW THIS, THIS CAN, THIS CAN HELP THEM CUT DOWN ON SOME OF THEIR CLOSING COSTS AND EVERYTHING LIKE THAT WITH THE DOWN PAYMENT ASSISTANCE.

SO THAT'LL CERTAINLY BE SOMETHING WE CAN DISTRIBUTE.

COOL.

THANKS.

BUT I WOULD HAVE TO SAY RIGHT NOW IN THIS MARKET, THOSE PEOPLE THAT ARE READY TO GO AND HAVE BEEN PRE-APPROVED FOR A LOAN, THEIR LENDER AND THEIR REALTOR WILL WANT SIX EXTRA MONEY.

OKAY.

I MEAN, THEY'RE JUST IN ORDER TO PURCHASE A HOME RIGHT NOW AT THE, THE RANGE THAT WE'RE LOOKING AT OF THEIR INCOME.

OKAY.

THEY NEED THIS EXTRA DOLLARS TO BE ABLE TO PURCHASE A HOME AND COMPETE OUT THERE.

SO BACK TO WHAT YOU WERE ASKING ABOUT, WHO, HOW DO WE DO IT? IT'S, IT'S ALREADY IN THE PIPELINE, REALLY.

REALTORS THAT ARE, ARE WORKING THIS MARKET ALREADY KNOW AND ARE LOOKING FOR EXTRA DOLLARS FOR THEIR CLIENTS.

SO, AND I'VE WORKED, I MEAN, YOU KNOW, I WORK WITH, UH, WITH THE STATE PROGRAM AND IT, IT WORKS, BUT IT TAKES A GOOD LENDER TO WANNA PACKAGE THESE DIFFERENT LITTLE PACKAGES TOGETHER.

IF NOT OUR PEOPLE, PEOPLE WE'D LIKE TO SEE GET IT.

WE'LL NEVER GET IT.

SO WHO DO WE HAVE AS LENDERS THAT ARE WORKING WITH, UH, EDUCATION AND SO FORTH IN THE CITY OF DALLAS? WHO ARE THE LENDERS? I DON'T HAVE IT OFF THE TOP OF MY HEAD.

I KNOW THAT INWOOD BANK IS ONE OF, HAS DONE A LOT OF DAP LOANS FOR US.

UM, BUT OFF THE TOP OF MY HEAD, I DON'T QUITE HAVE THAT READILY AVAILABLE.

I CAN TRY TO LOOK ON MY COMPUTER RIGHT NOW, THOUGH.

I, I MEAN, USUALLY THE BIG BANKS ARE THE ONES AND SOME OF THE MORTGAGE LENDERS, UM, WILL TOO.

I HAVEN'T LOOKED AT A LIST IN A LONG TIME.

SO MAYBE THAT'S SOME INFORMATION YOU COULD GET OUT TO US.

OH, ABSOLUTELY.

I THINK THIS IS, I MEAN, ONCE THIS, IF, IF THIS IS A IS APPROVED, OBVIOUSLY I THINK WE'LL MAKE EVERYBODY AWARE OF IT AS THIS IS A OPPORTUNITY OUT THERE.

BUT IT TAKES, LIKE, I, LIKE I SAID, I MEAN, IT TAKES, WE DON'T HAVE LIKE THAT MANY LENDERS THAT PARTICIPATE IN OUR D A P PROGRAM BECAUSE IT'S EXTRA WORK.

AND IF YOU'RE IN A HOT REAL ESTATE MARKET LIKE THIS, AND THIS IS THE TROUBLE THAT WE'VE HAD IN THE CITIES, IS THAT PEOPLE DON'T WANT TO TAKE THE EXTRA TIME TO DO THE LOANS FOR THE PEOPLE THAT NEED IT MOST.

SO, UH, MAKING THIS, YOU KNOW, GOING THROUGH A TRIED AND TRUE STATEWIDE PROCESS, UH, WILL CERTAINLY BE BENEFICIAL AND HOPEFULLY, UH, WE'RE NOT RECREATING THE WHEEL AND WE CAN PROVIDE WHAT VOLUME CAP WE HAVE TO SUPPORT THE, THE CITY AND OUR, AND OUR FUTURE HOME BUYERS.

KYLE, THERE ARE OBVIOUSLY SEVERAL OF US, EXCUSE ME, WHO ARE ACTIVELY SELLING REAL ESTATE.

WE HAVE MORTGAGE LENDERS WE WORK WITH.

CAN YOU TELL US WHAT THE APPLICATION PROCESS LOOKS LIKE TO BECOME A PART OF THAT PROGRAM THROUGH THE CITY? IF WE HAVE A LENDER, WE KNOW WHO WOULD WANNA BE INVOLVED.

I DON'T ACTUALLY KNOW WHAT'S ALL INVOLVED WITH, WITH THE, THE PROCESS FOR APPLYING TO THE STATE.

IT'S ALL ONLINE.

THEY HAVE, THEY HAVE A STEP-BY-STEP GUIDE.

I WOULD, I, I HAVEN'T, I HAVEN'T ACTUALLY LOOKED, I JUST WANTED TO MAKE SURE THAT WE GOT OUR, OUR END OF THE, THE PROCESS DOWN.

SO, UH, WE CAN MAKE, WE'LL ALSO MAKE AVAILABLE LIKE THE LINK TO THE WEBSITE AND EVERYTHING AND, UH, TALK THROUGH IT AND, AND GO FROM THERE.

GREAT.

THANK YOU.

ANY OTHER QUESTIONS? UH, YEAH, I HAD SOME QUESTIONS ON JUST THE, THE GENERAL KIND OF PROCESS OF THE VOLUME CAP ALLOCATION.

UM, SO IF WE MAKE OUR REQUEST, UM, FOR THE FULL 50 MILLION, UM, AND WE WAIT TILL WE HAVE LESS THAN 180 DAYS LEFT IN THE YEAR, THAT'S GOING TO PULL THAT VOLUME CAP OUT OF ANY FUTURE COLLAPSES FOR POTENTIAL MULTIFAMILY PROJECTS.

UM, THE DH CS INVOLVED WITH CORRECT? WELL, I MEAN, THIS IS BRAXTON FROM HILLTOP AGAIN.

UH, ONE WAY TO ALSO THINK OF IT IS, I MEAN, FOR THE LAST SEVEN YEARS, UH, THROUGH SUB CEILING ONE, TD, H C A AND TS A HAVE COME IN PRIOR TO THAT AUGUST 15TH COLLAPSE.

AND THEY, THEY'VE, THEY'VE CLAIMED ALL THE SUB SEALING ONE FUNDS, SO THAT THIS IS JUST ONE WAY TO KIND OF WORK AROUND THAT TO ENSURE THAT THE HFC IS RECEIVING SOME TYPE OF BENEFIT FROM, FROM SUBSE ONE, UH, ALLOCATIONS.

OKAY, GOTCHA.

SO UNDER THE CURRENT CLIMATE, T D H C A WOULD TAKE THE FUNDS ANYWHERE AND THEN ALLOCATE THEM AS THEY SEE FIT, WHERE IN THIS CASE WE'RE SPECIFICALLY RESERVING THOSE SUBSE ONE FUNDS TO GO TO SINGLE FAMILY

[00:30:01]

WITHIN THE CITY OF DALLAS LIMITS THROUGH THE CONDUIT OF T DH C A? CORRECT.

UH, THE, THE, THE MECHANISM BASICALLY IS IN SUB ONE, THERE IS A PRE COLLAPSE, UH, FOR JUST SUB ONE ISSUER IS ON AUGUST 7TH.

SO THEY HAVE A WEEK AHEAD OF THAT EIGHT 15 COLLAPSE, WHICH YOU'RE USED TO SEEING FOR THE MULTIFAMILY TRANSACTION.

SO THEY TAKE DOWN THE REMAINDER OF SUBLINE ONE AND USE THOSE FOR FUTURE YEARS.

UH, WITH THIS PROGRAM, WE'RE JUST KIND OF DICTATING THAT WE HAVE AT LEAST A PORTION SPECIFICALLY GOING TO DALLAS.

GOTCHA.

OKAY.

SO WE CAN KEEP THAT BENEFIT WITHIN THE CITY OF DALLAS, EVEN THOUGH IT'S THROUGH T D H C A RATHER THAN FLOWING THROUGH THE NORMAL AUGUST COLLAPSE.

CORRECT, YES.

GOTCHA.

OKAY.

AND, UM, SEPARATE QUESTION FOR KYLE, WHEN WE SAY THE TARGETED AREAS, THOSE ARE SPECIFICALLY QCS, CORRECT? CORRECT.

THE, THE, THE POINT IS THERE IS THAT WE WANNA PROVIDE THE ABILITY FOR HIGHER INCOMES IN QCS TO, UH, YOU KNOW, AT SOME POINT MAKE THEM NOT QCS OR DIFFICULT DEVELOPMENT DEVELOPMENT AREAS, AND THEN ALSO IN INCREASE, YOU KNOW, MARKET COMPS IN THAT AREA.

OKAY.

PERFECT.

THANK YOU.

YOU GO TO THE TACK WEBSITE AND IT GIVES YOU A LIST OF THE LENDERS THAT THEY HAVE.

OKAY.

ANY OTHER QUESTIONS? ALL RIGHT, THEN WE'RE READY TO VOTE.

I'M GONNA GO DOWN THE LIST.

UM, SO SORRY, MARCY.

QUICK, QUICK QUESTION.

UM, HOW MUCH ARE WE VOTING ON? IS IT THE, THE 20 OR THE 50? UH, I'M UNDER THE UNDERSTANDING THAT WE'RE VOTING ON THE 55 MILLION, CORRECT.

OKAY.

OKAY.

I VOTE YES.

UM, SECRETARY GARCIA? I VOTE YES.

AND TREASURER MARTINEZ? YES.

AND DIRECTOR PAGE? YES.

OKAY.

AND DIRECTOR VERNON? YES.

AND DIRECTOR ELLIS? YES.

DIRECTOR GARCIA? YES.

DIRECTOR FAROH? YES.

DIRECTOR LEWIS? YES.

AND DIRECTOR DOER? YES.

AND DIRECTOR COLLINS? YES.

OKAY.

IT PASSES.

ALL RIGHT, NOW WE'RE ON TO THE NEXT SINGLE FAMILY ITEM ON THE AGENDA TO CONSIDER AND ADOPT A RESOLUTION APPROVING THE ALLOCATION OF 5 MILLION FOR THE PURPOSE OF THE DEVELOPMENT AND CONSTRUCTION OF FOUR SALE HOUSING.

ALL RIGHT.

UM, SO CONTINUING ON HERE.

IN ADDITION TO THESE, UM, T D H D A PROGRAMS, WE HAVE OUR OWN FUNDS THAT WE ARE ABLE AND THAT WE WERE REQUESTED TO MAKE AVAILABLE TO PEOPLE WHO ARE WANTING TO PURCHASE SINGLE FAMILY HOMES.

UM, SO WE ARE SETTING ASIDE 5 MILLION FROM THE D H F C ACCOUNTS FOR THIS INITIATIVE.

UM, SO PART OF THAT, WE WILL BE ABLE TO BE, UH, REIMBURSING CITY STAFF TO KIND OF ADMINISTER THIS PROGRAM.

SO WE ARE GONNA BE ADMINISTERING THIS, OUR STAFF, MYSELF AND KYLE, AND, AND WHOEVER ELSE IN THE HOUSING DEPARTMENT.

UM, SO THIS IS ALL THROUGH US.

SO THIS IS A LITTLE DIFFERENT.

UM, NOW THE FUNDS ARE GOING TO BE AWARDED TO DEVELOPERS BASED ON OUR CURRENT NOFA.

SO THE HOUSING DEPARTMENT HAS THEIR CURRENT NOFA SET UP, UH, SO THAT ANY ANYONE FROM THE PUBLIC CAN APPLY.

AND THERE ARE CERTAIN, YOU KNOW, TRANCHES OF FUNDS THAT THEY CAN, UM, APPLY TO USE FOR THEIR HOUSING DEVELOPMENTS.

AND SO, UM, BASICALLY WE'RE GONNA JUST ADD OUR FUNDS TO THAT, UM, TO THAT PROCESS.

AND SO WHEN THEY'RE APPLYING, THEY CAN SAY, I WANT, I WANT THIS TYPE OF FUND FOR MY PARTICULAR PROJECT.

UM, QUICK POINT OF CLARIFICATION, IT'LL BE A SEPARATE NOFA, UH, WITH OUR FUNDS TIED TO IT THAT MIRRORS THE PROCESS OF, OF REVIEWING IT.

IT, IT'S NOT ACTUALLY OUR NOFA IT DOESN'T GO THROUGH, UH, THIS BOARD WILL BE THE DETERMINING BODY OF WHERE THE FUNDS ARE DISTRIBUTED.

AND IT DOESN'T GO THROUGH OUR, UH, CITY COUNCIL BECAUSE OUR, THE BYLAWS DO NOT REQUIRE THAT.

I JUST WANNA MAKE SURE THAT IT'S A, WE KNOW THAT IT'S A SEPARATE NOFA THAT, THAT WE CONTROL THE POLICIES AND THE PROCEDURES FOR REVIEWING AND, AND, AND TAKING APPLICATIONS.

WE'LL MIRROR THAT.

JUST TO CLARIFY FOR AARON.

RIGHT.

THANKS, KYLE.

UM, LIKE I SAID, THE ADVANTAGE IS THAT WE'RE NOT, UM, SUBJECT TO THOSE FEDERAL, UM, RESTRICTIONS THAT ARE, ARE IMPOSED ON A LOT OF OTHER, OTHER FUNDS.

AND SO WE MIGHT BE ABLE TO BE A LITTLE MORE FLEXIBLE WITH HOW WE USE THEM AND, AND MAYBE OPERATE A LITTLE MORE QUICKLY, UM, TO GET THESE FUNDS OUT INTO THE COMMUNITY.

AND SO, JUST LOOKING AT OUR CURRENT FINANCIAL POSITION, RIGHT NOW, WE HAVE ABOUT 7.5 MILLION IN CASH.

I THINK THAT'S UP NOW CLOSER TO EIGHT OR MAYBE OVER EIGHT.

UM,

[00:35:01]

SO WE'RE ALLOCATING THIS $5 MILLION, AND THAT LEAVES, UH, YOU KNOW, TWO AND A HALF MILLION DOLLARS TO COVER ALL OUR EXPENSES.

AND SO LOOKING AT OUR BUDGET, UM, THAT'S MORE THAN ENOUGH TO COVER ANYTHING THAT, THAT WE ARE DOING.

UM, SO WE THINK THAT'S A, IT'S A PRETTY, UM, REASONABLE AMOUNT TO KIND OF ALLOCATE FOR THIS PROJECT.

UM, AS YOU CAN SEE, KIND OF THE, THE EXAMPLE BELOW, UM, IF WE WERE TO RECEIVE NO INCOME ONE YEAR AND ALL $5 MILLION WAS EXPENDED, WE WOULD STILL HAVE OVER THREE YEARS OF OPERATIONS.

UM, BUT SEEING AS HOW THINGS HAVE BEEN GOING, WE'RE, WE'RE PRETTY ACTIVE AND WE'RE, YOU KNOW, INCREASING OUR ACCOUNTS MONTHLY.

SO, UM, IT SEEMS LIKE THIS IS A GOOD, UH, USE OF THESE FUNDS.

UM, SO PROGRAM PARAMETERS HERE, WE'RE TRYING TO BE FLEXIBLE HERE.

UM, BUT AS WE DISCUSSED IN A PREVIOUS MEETING, UM, WE WANT AT LEAST A 50% MARKET RATE AND 50% AFFORDABLE, UH, UNIT MIX.

WE'RE NOT TRYING TO FOCUS OR RATHER CONCENTRATE, UM, AFFORDABILITY IN CERTAIN NEIGHBORHOODS.

WE'RE TRYING TO SPREAD THAT OUT THROUGH THE COMMUNITY.

UM, SO THE MIXED INCOME NEIGHBORHOODS WILL PROMOTE WEALTH GENERATION AND ECONOMIC STABILITY.

UM, THEY ALSO SET NEW MARKET COMPS.

SO ONE THING I WANNA POINT OUT IS THAT THESE, THESE AFFORDABLE DESIGNATED UNITS WILL HAVE, THEY'LL BE NO DIFFERENT THAN THE REGULAR MARKET RATE UNITS.

AND SO WHEN THE HOMEOWNER GOES TO SELL, THEY'LL BE ABLE TO SELL IT AT MARKET PRICE.

NOW, THIS IS, UH, YOU KNOW, MAKING SURE THAT THEY'VE, THEY'VE STAYED IN THE HOME LONG ENOUGH TO ENSURE THOSE RESTRICTIONS HAVE BEEN MET, BUT, UM, IN THAT WAY THEY'RE, THEY'RE ABLE TO GENERATE THEIR OWN WEALTH TO THEIR OWN HOUSEHOLD AND, AND KIND OF UPLIFT THE COMMUNITY IN THAT, IN THAT WAY.

UM, SO THAT'S THE WHOLE IDEA HERE.

SO BASED ON CURRENT CONSTRUCTION AND LABOR MARKET CONDITIONS, UM, AFFORDABLE HOMES, YOU KNOW, BETWEEN 175 TO $325,000 IS WHAT THE PRICES MIGHT BE.

UM, AGAIN, THAT'S ALL DEPENDING ON GEOGRAPHIC AND MARKET MARKET CONDITIONS.

OKAY, SO THE HOME BUYERS, AND THIS IS WHERE WE WILL BE USING CITY, CITY STAFF TO, TO INCOME, QUALIFY THESE PEOPLE FOR THE HOME BUYERS AND, AND FOR HOW, UM, AND WHO THEY'LL BE SOLD TO.

SO THEY'RE, THEY'RE GONNA BE RESTRICTED TO 120% A M I.

UM, WE CAN ACTUALLY TARGET DEEPER AFFORDABILITY FROM 60 TO 120% BASED ON, YOU KNOW, THE LOCATION ARE, ARE THEY IN THE QCT OR, OR THE TARGETED AREAS.

UM, THEN WE HAVE 60 TO 120% AAMI INCOMES.

GENERALLY WHEN YOU'RE, WHEN YOU'RE QUALIFYING THEM, THEY CAN AFFORD BETWEEN 175 AND $325,000.

AND SO THEIR INCOMES RANGE RIGHT THERE FROM 53,000 TO 106,000 FOR A FAMILY OF FOUR.

ALL RIGHT, SO CONTINUING ON WITH OUR, OUR PROGRAM PARAMETERS, THE DEED RESTRICTIONS ARE GONNA BE REPLACED, ARE NOT REPLACED, BUT PLACED FOR 10 YEARS, UH, BASED ON THE COMPREHENSIVE HOUSING POLICY.

UM, IF YOU GUYS ARE FAMILIAR WITH THE LAKE JUNE FOR SALE, SINGLE FAMILY DEVELOPMENT, IT KIND OF MIRRORS THAT TYPE OF STRUCTURE.

SO THE DEED RESTRICTIONS ARE NECESSARY TO ENSURE THAT THE HOMES MAINTAIN AFFORDABILITY.

SO BASICALLY, WE DON'T WANT FLIPPERS COMING IN HERE, YOU KNOW, POSING AS BUYERS WHO NEED AFFORDABLE HOMES, GETTING THAT HOME AND THEN SELLING IT AT A PROFIT.

UH, THEN WE WOULD BE SUBSIDIZING THEIR PROFIT.

THAT'S NOT WHAT WE'RE, WE'RE HERE TO DO.

UM, SO THE FUNDS WILL BE DISTRIBUTED AS LOANS TO DEVELOPERS.

THEY'LL BE RE REPAID TO THE D H F C.

SO THIS ISN'T A GIVEAWAY PROGRAM.

UM, HOPEFULLY, IF IT WORKS CORRECTLY, WE'LL GET THAT MONEY IN KIND OF A REVOLVING ACCOUNT AND WE'LL BE ABLE TO REDEPLOY AND REDISTRIBUTE IT AS, AS IT COMES BACK INTO US.

JUST TO KIND OF CLARIFY ON HOW THAT WILL WORK, IS, UH, UH, WHEN WE'LL PROVIDE THE FUNDS, UH, AS A, AS A FORM OF A DEVELOPMENT LOAN TO THE DEVELOPERS.

AND THEN AS EACH UNIT IS SOLD, A PORTION, UH, UH, PRO RATA PORTION WILL COME BACK TO THE H FFC AS PART OF THE SETTLEMENT OF THE DEVELOPMENT.

SO, UH, I KNOW THAT IN THE MEMO IT DID SAY THAT WE'RE GONNA DO INTEREST FREE LOANS, BUT IF, IF A DEAL CAN HANDLE IT, THEN WE CAN, WE CAN CHARGE SOME SORT OF INTEREST RATE ON THAT.

SOMETIMES YOU JUST END UP TRADING DOLLARS ON, ON THAT, WHEREAS YOU HAVE TO PROVIDE THE DEVELOPER EVEN MORE MONEY TO PAY FOR ANY SORT OF INTEREST BEARING LOAN THAT WE PROVIDE TO THEM.

BUT IN ANY EVENT, WE'RE, WE'RE STRUCTURING THIS THAT WE ANTICIPATE BEING REPAID ALL OF THESE FUNDS, CUZ THAT ALLOWS US TO DO MORE THINGS.

SO, UM, BUT LIKE I SAID, IT'LL KIND OF COME BACK, UH, UPON EACH SALE AT, OF EACH LOT.

THANKS, KYLE.

UM, SO LIKE I SAID, ANY FOR SALE DEVELOPMENT WILL BE CONSIDERED.

SO THIS COULD BE SINGLE FAMILY TOWN HOMES, UM, ANY OTHER TYPE OF FOR SALE DEVELOPMENT HERE.

[00:40:01]

UH, WE'RE RECOMMENDING BROAD PROGRAM PARAMETERS.

UM, WE'RE, WE'RE TRYING TO GET A DIVERSE ARRAY OF PROJECTS.

UM, SO LIKE HE SAYS, HOUSING GENERALLY ADMINISTERS FEDERAL HOME AND COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS THAT HAVE STRICT REQUIREMENTS.

AND LIKE I SAID, OUR, OUR FUNDS CAN BE ALLOCATED IN A MUCH LESS RESTRICTIVE MANNER.

UM, WE CAN, WE CAN DO A LITTLE MORE CREATIVE, UH, THINGS WITH THIS MONEY.

UM, SO WHAT'S POSSIBLE, UM, LIKE I SAID, THE LAKE JUNE PROJECT, IT WAS LO IT IS LOCATED IN D FIVE, UH, THE PLEASANT GROVE AREA.

SO IT'S 125 SINGLE FAMILY HOMES.

UM, 25 OF THEM ARE AT 80% AND A HUNDRED ARE RESERVED FOR 120% AAMI FAMILIES.

SO THEY RECEIVED 1.8 MILLION IN ARPA FUNDING.

THAT'S THE AMERICAN RESCUE PLAN ACT IN THE FORM OF FORGIVABLE GRANT.

SO THE SALES PRICES THERE AREN'T TO EXCEED 325,000.

UM, AGAIN, THEIR DEED, THEIR DEEDS ARE RESTRICTED FOR 10 YEARS TO ENSURE AFFORDABILITY AND TO PREVENT THOSE FLIPPERS FROM COMING IN.

UM, SO THE HOME VALUE AT THE TIME OF CLOSE AVERAGE OF 300,000, AND THEN AT A CONSERVATIVE ESTIMATE IN TWO YEARS, IT COULD BE UP TO 323,000.

UM, SO JUST DOING LIKE A LITTLE QUICK MATH AND JUST HOW, HOW WE CAN, WE CAN BUILD WEALTH IN THIS COMMUNITY THAT'S, YOU KNOW, OVER $20,000 OF GENERATED WEALTH JUST FOR THAT ONE HOME BUYER.

UM, AND THEN IN THE WHOLE COMMUNITY OF 125 OF THESE HOMES, YOU KNOW, SAYING THAT'S PRETTY AVERAGE, THAT'S ALMOST 3 MILLION, UM, OF WEALTH GENERATED JUST TO THOSE, THOSE PEOPLE IN THAT COMMUNITY, WHICH, YOU KNOW, IS RIGHT IN LINE WITH OUR GOALS HERE AT, AT THE D H FFC.

UM, AGAIN, CHARIOT VILLAGE IS ANOTHER PROJECT THAT THE DEPARTMENT, THE HOUSING DEPARTMENT HAS DONE.

SO THOSE HOMES SOLD FOR 228,000 IN 20 19, 20 20, AND NOW THEIR VALUES ARE OVER 310,000.

AND SO, UM, YOU KNOW, THIS, THIS IS A PRETTY GOOD WAY TO, TO GENERATE WEALTH IN THE COMMUNITY, LIKE WE SAID.

AND, UM, IT'S A PRETTY LOW INVESTMENT IN EACH AFFORDABLE HOME FROM US.

UM, SO WITH THIS $5 MILLION, WE SHOULD ALLOW FOR ABOUT 300 HOMES JUST INITIALLY.

UM, AND THAT'S NOT INCLUDING ALL THE MONEY THAT WILL COME BACK TO US ONCE IT'S REPAID, AND THEN WE CAN KIND OF REDO THAT EACH TIME THAT THAT'S REPAID.

UH, SO OUR PROCESS, UH, LIKE KYLE MENTIONED, THIS'LL BE, WE ALREADY HAVE A NOFA SET UP IN THE, IN THE HOUSING DEPARTMENT, BUT WE CAN MIRROR THAT.

UM, WE HAVE STAFF IN PLACE TO KIND OF CONDUCT THAT, THAT ADMINISTRATIVE DUTY HERE, UM, TO QUALIFY DEVELOPERS.

AND SO WE'LL MAKE THE 5 MILLION AVAILABLE THROUGH A, UH, SEPARATE NOFA APPLICATION.

UM, AND SO OUR STAFF, THEY HAVE THESE PRE-APPLICATION MEETINGS WHERE THEY CAN MEET WITH DEVELOPERS, KIND OF EXPLAIN THE PROCESS OF HOW TO APPLY, WHAT, WHAT ARE THE REQUIREMENTS, WHAT DO THEY NEED TO ACTUALLY DO TO MAKE THIS WORK IN REAL LIFE.

UM, SO WE'LL BE ADMINISTERING THAT.

UM, AND THEN ONCE THEY GET A SCORE FROM OUR STAFF, THEY CAN, UH, MOVE ALONG AND, YOU KNOW, THEY CAN, UH, QUALIFY FOR THIS, THESE FUNDS.

AND SO, YOU KNOW, I'M NOT GONNA READ THIS WHOLE THING TO YOU, YOU GUYS CAN READ, BUT, UM, I WOULD JUST SAY OUR STAFF IS IS PRETTY COMPETENT IN IN DOING THIS.

THEY'VE ALREADY BEEN DOING THIS FOR A COUPLE YEARS NOW AND, UH, IT'S A PRETTY SMOOTH PROCESS I THINK.

YEAH, IT'LL FOLLOW UP.

MOST OF OUR STANDARD PRO, WE TAKE THE APPLICATION, MAKE SURE THAT IT RECEIVES A FUNDABLE SCORE BASED ON THE REQUIREMENTS OF THE NOFA APPLICATION ITSELF.

WE UNDERWRITE IT TO MAKE SURE THAT, YOU KNOW, CONSTRUCTION COSTS ARE IN LINE, POTENTIAL SALES PRICES ARE IN LINE, THAT THE HOME BUYER ANALYSIS IS IN LINE, THAT IT'S ACTUALLY AFFORDABLE FOR WHO WE'RE TARGETING, UH, BASED ON THE AAMI RESTRICTIONS THAT WE'RE, WE'RE TRYING TO DO AT THE DEVELOPMENT.

AND THEN, UH, CONFIRM THAT FINANCIAL GAP AND THEN WE'RE, WE'RE OFF AND RUNNING.

AND THEN THE NEXT PIECE IS OBVIOUSLY THE INSPECTION OF THE CONSTRUCTION ITSELF.

WELL, UPON BOARD APPROVAL WE'LL MOVE FORWARD, INSPECT THE PROJECTS AS THEY'RE, AS THEY'RE BEING DEVELOPED INCOME QUALIFY, UH, THE, THE TENANTS AND THEN, UH, WORK TO DO THE, DO THE CLOSING AND MAKE SURE THAT ALL OF OUR PROTECTION, SUCH AS THE DEED OF TRUST DEED RESTRICTIONS ARE IN PLACE.

UM, I WILL ALSO MENTION THAT THE DEED RESTRICTIONS WILL ALLOW THE HOME OWNER TO SELL WITHIN THE FIRST 10 YEARS, HOWEVER, IT MUST BE TO ANOTHER INCOME QUALIFIED HOME BUYER.

SO IT DOESN'T LOCK IN, THEY DON'T LOSE THE, THE HOME BUYER DOESN'T, DOESN'T HAVE TO REPAY ANY SORT OF, UM, OUR OTHER PORTION OF THE LOAN THAT WE PROVIDED SO LONG AS IT IS SOLD TO A, UM, UH, UH, AN EQUALLY QUALIFIED HOME BUYER.

SO KYLE, THIS IDEA OF THREE AND A HALF PERCENT GROWTH OVER A TWO YEAR PERIOD IS,

[00:45:01]

IS PRETTY WILD TO ME.

I MEAN, WE CAN TALK ABOUT IT BEING CONSERVATIVE, BUT ARE PEOPLE EVEN GONNA BE ABLE TO QUALIFY FOR THESE HOMES IF WE HAVE ANOTHER YEAR OF 18%, YOU KNOW, VALUE GROWTH IN OUR MARKET? I MEAN, THAT'S KIND OF MY QUESTION.

WELL, SO THE, YEAH, THE, THE INCOME BANDS GROW EACH YEAR, SO AS, AS, AS THE, AS AS, AS THE MARKET CHANGES AND, YOU KNOW, THE INCOMES OF THE CITY GROW, I THINK ACTUALLY FROM LAST YEAR TO THIS, FROM LAST YEAR TO THIS YEAR, I THINK WE'RE AT 89,000 WAS AREA MEDIAN INCOME FOR THE CITY OF DALLAS FOR A FAMILY OF FOUR.

WE'RE NOW AT 97,000 IN JUST ONE YEAR.

SO THAT IT, IT KEEPS MOVING UP.

I KNOW THAT INCOMES MAY, MAY NOT BE MEETING THAT RIGHT NOW, BUT THESE ARE THE AAMI REQUIREMENTS THAT WE HAVE AND WE NEED TO, ONE, MAKE SURE THAT WE'RE, WE'RE THE, THE FAMILIES HAVE ENOUGH MONEY TO BE ABLE TO, YOU KNOW, SUPPORT HOME OWNERSHIP AND BE ABLE TO TAKE CARE OF, TAKE CARE OF THE PROPERTIES AND HAVE ENOUGH DISPOSABLE INCOME TO BE ABLE TO, TO BE ABLE TO DO THAT.

UM, SO YEAH, THAT'S KIND OF, WE'LL, WE'LL KEEP MONITORING WHAT, UM, LIKE OUR, PART OF OUR ANALYSIS, I THINK I MENTIONED A HOME BUYER ANALYSIS TO TAKE A LOOK AT, YOU KNOW, DEBT AND EQUITY RATIOS.

UH, LENDERS WILL ALSO BE MAKING, UH, PART OF THIS DETERMINATION CUZ THEY'RE NOT GONNA GET A LOAN IF THEY'RE, IF THEY HAVE WAY TOO HIGH OF, UH, INCOME EXPENSE RATIOS.

SO THERE'S A LOT OF DIFFERENT WAYS TO LOOK AT THIS AND WHAT I I I, BUT I HEAR YOU LOUD AND CLEAR THAT CONSTRUCTION COSTS, HOME PRICES JUST CONTINUE TO RISE.

SO, UM, MY, MY CONCERNS MORE WITH THE PRICES OF HOMES, YOU KNOW YEAH.

IF THEY START AT 3 25, THEY GO UP 20% AND THE NEXT 12 MONTHS AND ANOTHER 20% AFTER THAT MM-HMM.

WHERE WE'RE OUT OF THAT AAMI THRESHOLD.

YEAH, I I WOULD SAY THAT THE DEVELOPERS ARE GONNA BE PRICING THAT IN, IF THEY KNOW THAT THEY'RE GONNA BE LIMITED TO A CERTAIN POOL OF BUYERS, THEY'RE NOT GONNA APPLY FOR FUNDS THAT THEY KNOW THAT THEY CAN'T SELL A HOME OUT OF CERTAIN PRICES.

SO ALL OF THAT IS, IS TAKEN CARE OF IN THE APPLICATION PROCESS.

IT'S UNDERWRITTEN AND IT'S KIND OF VETTED WITH THAT CONSIDERATION IN MIND, YOU KNOW, AND SO I THINK, YEAH, IT'S, IT'S SOMETHING WE HAVE TO BE AWARE OF.

MAYBE WE HAVE TO ADJUST A LITTLE BIT AS, YOU KNOW, WE MOVE THROUGH THIS KIND OF WEIRD HOUSING MARKET.

UM, YEAH.

AND ALSO IT JUST, I MEAN, IF, IF WE ANTICIPATE THAT THIS HOME AND THE, AND THE CONSTRUCTION COSTS, AND I MEAN WE'RE, WE'RE LOOKING AT REASONABLE DEVELOPER RETURNS WHEN YOU, WHEN YOU DO THE CASH FLOW ANALYSIS ON, ON THESE PROJECTS, LIKE IF THEY'RE, IF THEY'RE BUILDING A, A HOME FOR SAY, $200,000, WHAT IS A REASONABLE RETURN PLUS OUR FINANCIAL SUBSIDY THAT WE'RE PROVIDING IF THE MARKET CONTINUES TO, TO GROW? I MEAN WE'RE, WE'RE PUTTING BELOW MARKET.

NO, I, I UNDERSTAND ALL OF THAT.

MY CONCERN IS ARE PEOPLE GONNA BE LOCKED INTO THESE HOMES? OH, IF THEY'RE UNABLE TO SELL THEM AND THEN WE'VE TRAPPED SOMEONE THEIR LANDLOCKED, THEY HAVE NOWHERE TO GO IF THEY CAN'T SELL THEIR HOME TO SOMEONE WHO HAVE, WHO MUST ALSO QUALIFY.

OH, WELL, WELL HERE'S, WE'RE IN TROUBLE HERE.

YEAH.

BUT THE WHOLE POINT IS TO, TO BE ABLE TO KEEP THE AFFORDABLE UNIT.

SO YEAH.

ALL RIGHT.

SO I HAVE A SUGGESTION THAT, UM, THAT BEFORE I TAKE A MOTION AND A SECOND THAT WE MAKE THIS SUBJECT TO APPROVAL OF THE NOFA.

IN OTHER WORDS, I DID LOOK AT THE NOFA THAT EXISTS, UM, AND YOU KNOW, THERE'S A LOT OF THINGS THAT PROBABLY AREN'T GONNA APPLY ON OUR, UM, ON OUR DEAL.

AND ALSO, YOU KNOW, THERE'S THINGS LIKE IN THE NOFA THAT, THAT WE LOOKED AT.

UH, THE AFFORDABILITY PERIODS RANGE FROM 10 TO 15 YEARS, DEPENDING ON CERTAIN FACTORS.

SO, UM, SO I THINK WE REALLY ARE GONNA WANNA HAVE AN OPPORTUNITY TO REVIEW THAT NOFA AND MAKE SURE THAT'S WHAT, HOW WE WANT IT TO BE, WHAT OUR PARAMETERS WILL BE.

SO IF THERE'S NO OBJECTION TO THAT, I WOULD ADD THAT TO THE MOTION THAT IT'S SUBJECT TO APPROVAL OF THE NOFA, YOU KNOW, OUR NOFA.

UM, AND THEN I HAVE ANOTHER QUESTION, WHICH IS, UM, WILL THERE BE ANY DOWN PAYMENT ASSISTANCE AVAILABLE TO THESE PURCHASERS? YEAH, SO THESE, DUE TO THE NATURE OF HOW THE, THE HOMES ARE DEVELOPED, WHEN THEY COME THROUGH OUR CITY PROCESSES, UH, IT ALLOWS US TIME TO WORK WITH THEIR REAL, WHOEVER THE, THE DEVELOPER'S REALTOR IS, OR WHOEVER MIGHT BE, MIGHT BE MARKETING THE, THE PROJECTS WE CAN PUT THEM IN TOUCH WITH OUR DOWN PAYMENT ASSISTANCE PROGRAM.

A LOT OF TIMES IT IS COMBINED BECAUSE YOU HAVE A SIX MONTH LEAD TIME, SO WE CAN ACTUALLY WORK WITH THEM TO DISTRIBUTE THESE FUNDS.

AND IT'S PROBABLY ONE OF THE BEST WAYS FOR OUR D H A P PROGRAM CUZ IT DOES ADD A LITTLE BIT OF TIME TO THE CLOSING PROCESS.

SO WE HAVE FOUND THAT OUR CITY, UH, FUNDED SINGLE FAMILY FORCE SALE DEVELOPMENTS DO LEND THEMSELVES TO OUR D H A P PROGRAM.

AND DOES THAT D H P

[00:50:01]

PROGRAM USE FEDERAL FUNDS? CUZ AREN'T THERE SOME FEDERAL FUNDS THAT ARE AVAILABLE FOR DOWN PAYMENT ASSISTANCE? IT'S PRIMARILY HOME AND C D B G FUNDS RIGHT NOW.

YEAH, WE DO HAVE AN, WE DO HAVE A PROGRAM FOR TARGETED OCCUPATIONS SUCH AS TEACHERS, FIRST RESPONDERS, PEOPLE LIKE THAT, THAT GO UP TO ONE 20.

UH, BUT THAT'S GENERAL FUNDS FROM THE CITY.

SO IT, IT MAY OR MAY NOT BE, YOU NEVER KNOW WHAT WE GET AS AN ALLOCATION IS 10 YEARS TO 15 YEARS.

IS THAT THE NORM TO HAVE, THAT'S WHAT WE HAVE IN OUR COMP CITY'S COMPREHENSIVE HOUSING POLICY.

OUR LAND BANK PROGRAM I BELIEVE IS FIVE.

AND, UH, SO THAT'S JUST WHAT WE, WHAT WE USE THERE.

I I THINK, YOU KNOW, IF, IF THINGS ARE GONNA KEEP SKYROCKETING, MAKING SURE THAT THAT HOMES STAY AFFORDABLE, UM, IS, IS SOMETHING THAT I THINK WE ARE TRYING TO DO.

UH, AS AS FAR AS AS, AS FAR AS THIS PROGRAM IS CONCERNED, UH, THERE, SOME OF THE UNITS IN THIS WILL BE MARKET RATE, SO WITH NO INCOME RESTRICTIONS.

SO THAT'LL ALLOW THAT OPPORTUNITY FOR, FOR INCOME GROWTH IN, IN THAT NEIGHBORHOOD.

BUT, UM, GENERALLY SPEAKING, DEPENDING ON THE AMOUNT OF FUNDS TIED TO EACH UNIT, IS HOW WE DETERMINE WHAT THE, UH, THE DEED RESTRICTION WILL BE.

AND BASED ON WHAT WE ARE ANTICIPATING IT WOULD BE AROUND, IT WOULD BE AROUND THE 10 YEAR MARK.

KYLE, UM, I, I LIKE THIS PROGRAM.

UM, ONE OF THE THINGS I, I KNOW I'VE SPOKEN TO YOU ABOUT BEFORE IS, AND I'M NOT SAYING RIGHT NOW, BUT PERHAPS IN THE FUTURE, THERE ARE A LOT OF NEIGHBORHOODS IN DALLAS WHICH ARE UNDERGOING RAPID GENTRIFICATION.

I'LL TAKE ELM THICKETT AS AN EXAMPLE.

AND SO THE PROBLEM I SEE IN, IN THOSE NEIGHBORHOODS AND UH, ELM THICKETT IS JUST ONE, BUT IT'S ONE I'M MOST FAMILIAR WITH, WHICH IS BETWEEN LOVE FIELD AND, AND PRESTON HOLLOW, WHERE YOU HAVE A LOW INCOME MINORITY NEIGHBORHOODS RAPIDLY BEING KIND OF SUBSUMED BY, UM, THE EXPANSION OF PRESTON HOLLOW.

AND THAT'S CREATING A PROBLEM BECAUSE THE Q C T THERE, UH, IS BEING SKEWED UPWARDS RAPIDLY BECAUSE YOU HAVE A BUNCH OF, YOU KNOW, VERY AFFLUENT PEOPLE MOVING INTO THE AREA.

SO IN THE FUTURE, IS IT POSSIBLE TO ALSO LOOK AT A CREATIVE PROGRAM WHERE WE COULD PROVIDE ASSISTANCE TO EXISTING LOW-INCOME HOMEOWNERS IN THESE RAPIDLY GENTRIFYING NEIGHBORHOODS, UM, TO ASSIST THEM WITH REPAIRING THEIR HOMES AND BEING ABLE TO REMAIN, UM, IN PLACE IN THE FACE OF, YOU KNOW, RAPIDLY ESCALATING PROPERTY TAXES, ET CETERA? YEAH, AND THAT'S CERTAINLY SOMETHING WE CAN LOOK AT.

ELM THICKETT WAS ACTUALLY DISCUSSED IN, UH, WHEN WE WERE DOING OUR LAST YEAR'S ROUND OF BUDGETS TO BE ONE OF OUR TARGETED HOME REPAIR PROGRAMS. UM, ULTIMATELY IT WAS DECIDED THAT, UH, WE WOULD TARGET THOSE FUNDS TO, UH, HISTORIC 10TH STREET, JOBY AND FIVE MILE, HOWEVER WE DO HAVE IN PLACE AND WE'RE JUST SETTING UP THESE NEW TARGETED REPAIR PROGRAMS IN THOSE NEIGHBORHOODS AS WELL AS, UH, WEST DALLAS.

UM, MY TEAM AND, AND MY STAFF ON OUR PRESERVATION TEAM ARE IN THE PROCESS OF STANDING THIS UP.

WE ARE FINALLY STARTING TO GET A LOT OF TRACTION AND A LOT OF HOMES BEING, UH, PRESERVED.

UM, THE REASON WE DIDN'T BRING A HOME PRESERVATION PROGRAM THROUGH, THROUGH THIS, THROUGH THE HFC AT THIS TIME WAS THAT WE JUST DON'T HAVE A CAPACITY TO, TO ADD LIKE A NEW TARGETED NEIGHBORHOOD.

UM, WE ONLY HAVE SO MANY CONTRACTORS THAT ARE OUT THERE THAT ARE, THAT ARE PROVIDING, UH, THIS PROGRAM PROVIDING SERVICES TO OUR PROGRAM.

SO, UM, AT THIS TIME WE DON'T QUITE HAVE THE STAFF CAPACITY CUZ THIS IS, I MEAN THIS IS A LOT OF CASE MANAGEMENT.

WE BRING THIS UP ALL THE TIME THAT IT TAKES A LOT, A LOT OF THE FAMILIES, THEY'RE, THEY'RE ELDERLY, UH, AND UH, DON'T HAVE ALL OF THE DOCUMENTATION SUCH, SUCH AS THEIR, THEIR HOME DEEDS AND, AND EVERYTHING LIKE THAT.

DIVORCE DECREES OR ANY, OR AFFIDAVITS OF AIRSHIP, ALL THESE DIFFERENT TYPES OF DOCUMENTS.

SO IT IS STAFF INTENSIVE AND WE DON'T QUITE HAVE THAT SET UP RIGHT NOW, BUT IN THE FUTURE WE CAN ABSOLUTELY TAKE A LOOK AT THIS ELM THICKET, OTHER NEIGHBORHOODS THAT MIGHT BE EXPERIENCING THIS TYPE OF, UH, GENTRIFICATION DISPLACEMENT, UM, CUZ IT, CUZ IT'S HAPPENING ALL OVER THE CITY.

SO WE CERTAINLY HAVE THE OPPORTUNITY TO, TO TAKE A LOOK AT THAT AND ADD THIS POTENTIALLY TO THE, THE LIST OF TARGETED AREAS WE HAVE IN THE, IN THE HOUSING DEPARTMENT.

UH, THANKS THAT, THAT MAKES SENSE.

UM, AND I TOTALLY UNDERSTAND I'M SYMPATHETIC TO THE, YOU KNOW, CONSTRAINTS AND STAFF.

IS THERE, UM, A BUSINESS MODEL THAT EXISTS? ARE THERE ANY COMPANIES THAT PROVIDE OUTSOURCED, YOU KNOW, SERVICING SOLUTIONS TO MUNICIPALITIES THAT ARE DEALING WITH KIND OF BESPOKE PROGRAMS? LIKE SOMETHING LIKE WE'RE TALKING ABOUT HERE? OR IS THAT, IS IT REALLY IF YOU'RE GONNA DO SOMETHING, IT PRETTY MUCH HAS TO BE DONE BY, BY, UM, IN-HOUSE CITY STAFF.

WE HAVE A MINOR HOME REPAIR PROGRAM THAT WE'RE TRYING

[00:55:01]

TO TARGET NONPROFITS TO BE ABLE TO PROVIDE, UH, THESE SERVICES ON ALMOST LIKE AN OUTSOURCED BASIS.

UM, WE'RE TRYING TO GROW OUR NONPROFIT COMMUNITY THAT MAY BE PARTICIPATING IN PROGRAMS LIKE THIS.

AS IT STANDS NOW, THERE ISN'T ANY THAT WE'RE AWARE OF THAT HAS THE, THE, THE MAGNITUDE TO BE ABLE TO SERVICE THIS IN THE MANNER IN WHICH, IN WHICH WE ARE CURRENTLY PROVIDING.

HOWEVER, WE'RE CONTINUOUSLY ON THE LOOKOUT.

THANKS.

I, OKAY.

SO, UM, IF SOMEONE WOULD PUT A MOTION ON THE FLOOR, WE CAN HAVE ADDITIONAL DISCUSSION IF WE NEED TO, BUT, UM, BUT I THINK WE SHOULD GET A MOTION ON THE FLOOR WITH THAT IF EVERYONE'S IN AGREEMENT WITH THAT REVISION TO SAY, YOU KNOW, SUBJECT TO THIS BOARD'S APPROVAL OF THE NOFA.

ANYBODY WANNA MAKE THAT MOTION? ? I'LL MAKE, I'LL MOVE TO, I'LL SECOND, IS THAT DIRECTOR LEWIS GARCIA? NOT ME THIS TIME.

GARCIA.

WAIT, SO THE MOTION WAS SECRETARY GARCIA AND THEN WE HAVE, UM, DIRECTOR PAGE, RIGHT? YES.

OKAY, GREAT.

ALL RIGHT.

ANY OTHER QUESTIONS? UH, I I HAVE ONE, ONE QUESTION.

SO OBVIOUSLY THERE'S NOT REALLY MUCH WE CAN DO TO MITIGATE THE INCREASE IN THE HOUSING MARKET REGARDING PRICES.

SO, UM, MY QUESTION IS, IS OR WILL THERE BE A PROCESS TO HELP NOT DELAY THE DEVELOPMENT? SO, UH, UH, CUZ YOU KNOW, I EACH YEAR THE HOUSING, UH, PRICES GO UP.

SO FOR LIKE PERMITTING AND ANY OTHER PROCESSES UH, IN CORRELATION TO THESE DEVELOPMENTS, IS THERE GONNA BE ANY WAY OR PROCESS TO MAKE THIS A LITTLE BIT MORE EFFICIENT? EFFICIENT? SO THE HOUSING DEPARTMENT DOES HAVE A TEAM THAT WE ARE IN CONTACT WITH TO MAKE SURE THAT, UH, WE CAN PROVIDE ASSISTANCE.

CUZ ONE OF THE BIGGEST, ONE OF THE, THE PROBLEMS IS, IS INCOMPLETE PERMIT APPLICATIONS AND MAKING SURE THAT WE CAN ALL WORK TOGETHER FROM THE OUTSET SO THAT THE, OUR PERMITTING OFFICE RECEIVES A COMPLETE APPLICATION.

WE CAN HELP, HELP GUIDE THEM THROUGH THAT.

WE HAVE A TEAM OVER THERE THAT, UH, CAN, CAN PROVIDE THAT ASSISTANCE.

THERE'S NO OFFICIAL WAY TO EXPEDITE PERMITS THERE OR HOP THE LINE OR ANYTHING, ANYTHING LIKE THAT.

BUT THE BEST WE CAN DO IS DO OUR UPFRONT GROUND GROUNDWORK, LEGWORK, WORK WITH, UH, DEVELOPERS FROM THE GET GO TO MAKE SURE THAT EVERYTHING THAT'S, THAT'S TURNED INTO, UH, OUR PERMANENT OFFICE IS, IS COMPLETE.

CUZ THAT'S THE QUICKEST WAY TO GET THROUGH, UH, THE PROCESS.

ANY OTHER QUESTIONS? UM, YEAH, I JUST WANNA MAKE SURE I'M UNDERSTANDING THIS.

SO AFTER 10 YEARS, THE AFFORDABILITY RESTRICTIONS ROLL OFF AND THE PROPERTIES CAN BE SOLD AT MARKET RATE, UM, WE'LL STILL GET PAID BACK FROM OUR INVOLVEMENT OF THE DEAL AT THAT POINT? CORRECT? WE, WE ACTUALLY RECEIVE OUR FUNDS AT THE TIME OF, OF CLOSE AT THE, WELL WHEN, WHEN THE, WHEN THE HOME, WHEN THE HOME IS SOLD TO A QUALIFIED HOME BUYER, THEN WE RECEIVE OUR PORTION OF THE FUNDS BACK.

OKAY.

SO, UM, I GUESS, AND I'M JUST THINKING ABOUT IT IN TERMS OF YEAR NINE, UM, WHEN THOSE AFFORDABILITY RESTRICTIONS ARE ABOUT TO ROLL OFF, UM, HOW DO WE PREVENT A FLIPPER FROM COMING IN AT THE END OF YEAR NINE AND THEN GETTING THAT, MAKING THAT PROFIT AT THE END OF YEAR NINE? CUZ IT FEELS LIKE, LIKE THAT'S WHEN THE BENEFITS ARE GONNA ACCRUE SOMEONE REALLY HAS TO BE THERE THE FULL 10 YEARS TO TAKE ADVANTAGE OF THAT YEAR NINE EVENT.

SO IF THE HOME, IF THE HOME BUYER STAYS IN, IN THE HOME FOR 10 YEARS AND IT'S THEIR PREROGATIVE, LIKE IF THE, ONCE THE DEED RESTRICTIONS ARE, ARE GONE, I MEAN THEY CAN, THEY CAN CERTAINLY SELL.

I MEAN THAT'S, THAT'S PART OF IT'S, WE PRE PRESERVED OUR AFFORDABILITY FOR, FOR 10 YEARS AND, UH, THAT HO THAT HOMEOWNER CAN SELL THAT, THAT HOME, THIS WOULD HAVE BEEN A LOW TO MODERATE INCOME HOME BUYER FROM THAT TIME.

AND THIS IS THE OPPORTUNITY TO, YOU KNOW, CREATE THAT, THAT WEALTH AT THAT TIME TO, TO SELL THE PROPERTY.

BUT I WOULD, I WOULD ADD TO THAT, KYLE, UM, I THINK TO YOUR QUESTION, DIRECTOR GARCIA, UM, A HOME FLIPPER, EVEN AT YEAR NINE, THEY STILL COULDN'T COME IN AND BUY IT BECAUSE IT'S STILL UNDER THE RESTRICTION AND YOU HAVE TO BE AN INCOME QUALIFIED BUYER AS LONG AS YOU'RE WITHIN THOSE 10 YEARS.

AND SO, I MEAN, I GUESS THEY COULD FALSIFY FORMS OR WHATNOT AND, AND TRY TO COME IN AS AN INCOME QUALIFIED BUYER, BUT, UH, JUST SEEMS LIKE A LOT OF WORK AND A LOT OF RISK FOR, FOR SOMEBODY TO DO THAT TYPE OF THING.

THAT'S AN ILLEGAL AND WE'LL, WE'LL, UH, I MEAN WE'LL WE WILL BE REVIEWING THE HOME BUYER FILES IF THIS, IF THIS HAS TO CHANGE, THEY WILL.

[01:00:01]

A, A LENDER WON'T, WON'T SELL THIS PROPERTY WITHOUT US EITHER, UH, WITHOUT, WITHOUT CONFIRMING THAT THE HOME BUYER IS INCOME QUALIFIED AT THAT TIME OR THEY WOULD NEED TO REQUIRE THE, THE RELEASE OF THAT LIEN ON THE PROPERTY.

INDEED RESTRICTIONS ON THE PROPERTY.

SO THAT'S ALSO PART OF THE PROCESS.

GOTCHA.

OKAY.

SO AGAIN, IF ANYONE, SO THE ONLY ESCALATION THAT SOMEONE CAN REALLY MAKE IN WEALTH