[ Dallas Housing Finance Corporation on May 10, 2022.]
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MEETING TO ORDER AND I WILL ASK MR. QUINTO TO DO THE ROLL CALL, PLEASE.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.
DAVID, ARE YOU HERE? I'M HERE.
CAN YOU HEAR ME NOW? WE CAN HEAR YOU THOUGH.
DIRECTOR TATIANA FARRELL HERE.
DIRECTOR BELIN BANKS DID NOT SEE HER.
DIRECTOR CLAIRE DOER HERE AND DIRECTOR PATTY COLLINS HERE.
ALL RIGHT, BACK TO YOU, MARCY.
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.
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.
AND DO I HAVE A SECOND? WHO WAS
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THAT? DIRECTOR LEWIS.UM, IS THERE ANY DISCUSSION OR ARE THERE ANY CORRECTIONS? LOT OF SILENCE IN THIS ROOM TODAY,
UM, OKAY, SO I'LL JUST ASK, UH, ALL IN FAVOR TO SAY AYE.
ANY OPPOSED? ANY ABSTENTIONS? OKAY.
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.
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 PROVIDE BELOW MARKET, UM, 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.
SO OUR INCOME LIMITS HERE, ONE TO TWO PERSON HOUSEHOLDS ARE UP TO $89,000 FOR A HUNDRED PERCENT A M I THREE OR MORE PERSONS AT 115% A M I.
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 AREA IS 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.
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 OR ARE HELPING THESE PEOPLE OUT HERE.
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 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.
UM, AND YOU KNOW, SINCE RATES ARE CHANGING CONSTANTLY NOW, UM, YOU NEVER KNOW THEY COULD BRING BACK THOSE, UH, FORGIVABLE SECOND LIENS.
THIS IS JUST AS OF MAY 6TH, SO DEPENDS ON WHAT THEY WANNA DO
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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.
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, DO IT ALL TOGETHER.
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.
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 SIDE.
I THOUGHT WE WERE, WE NEED TO TAKE FIVE AND SIX RIGHT NOW.
IS THAT WHAT YOU SAID? SORRY, I MISUNDERSTOOD HERE.
SO, SO THE DISCUSSION, I MEAN, THE PRESENTATION FOR THOSE TWO IS COMPLETE.
SO LET'S, UH, LET'S DO A MOTION IN A SECOND AND THEN WE'LL HAVE QUESTIONS, UH, DOES ANYONE WANNA MAKE? AND I, AND WE'LL COMBINE FIVE AND SIX.
SO DOES ANYONE WANNA MAKE THAT MOTION? I'LL MAKE THE MOTION TO COMBINE, TO APPROVE ITEM FIVE AND SIX.
AND DO I HAVE A SECOND? I SECOND IT.
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, UH, UNAVAILABLE.
CAN YOU, CAN YOU SPEAK TO THAT GEORGE, OR HOW WE'RE LIMITED IN THIS AMOUNT OF, OF, OF MONEY AND FUNDS
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TO USE? YOU CAN, SORRY.I'VE GOT TWO, I HAVE TWO MUTES ON, SO ME, CHARLES ON, BUT, AND GEORGE, CAN YOU, YOU CAN DO UP TO TURN YOUR, GEORGE, CAN YOU TURN YOUR VIDEO ON AS WELL? OH YEAH.
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 TD HCA 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 AS 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, YOU KNOW, SAVVIEST WE GOT IN LINE FIRST, WE'RE GONNA, YOU.