[00:00:01]
ON THE FULL TIME.UH, ANYONE WHO'S PRESENTING, WE JUST NEED YOUR CAMERA ON WHILE YOU'RE SPEAKING.
[Dallas Housing Finance Corporation on June 11, 2024.]
I'VE CALLED THE MEETING TO ORDER, WHICH WAS ITEM NUMBER ONE.ITEM NUMBER TWO IS THE ROLL CALL.
SO I'LL TURN THAT OVER TO PROJECT MANAGER SCHRADER SCHROEDER SCHROER.
HI, SCHROEDER
CAN YOU HEAR ME? HE'S UNMUTED.
THE VOLUME'S NOT UP ON OUR, UM, PRESENT.
I DON'T KNOW WHY I CAN'T TAKE, CAN'T HEAR HIM.
CAN YOU HEAR ME? GIVE US A SOUND OR OPEN SIDE.
CAN YOU ON MUTE? RIGHT, I SEE HER.
UM, DIRECTOR KEVIN HINTON PRESENT.
UH, VICE PRESIDENT RYAN GARCIA.
DIRECTOR DAVID ALICE PRESENT, UH, PRESIDENT CARSEN.
I DO NOT SEE, UH, SECRETARY TONY PAGE OR ANTHONY PAGE.
TONY, CAN YOU HEAR US? YES, I'M PRESENT.
AND THEN, UH, DIRECTOR SEAN ZADY.
SO I'LL NOW CALL FOR PUBLIC COMMENTS ON ITEMS FOUR THROUGH EIGHT OF THE AGENDA.
AND IF SOMEBODY IS WANTING TO MAKE A COMMENT AND ONLINE, PLEASE LET US KNOW AS SOON AS YOU CAN.
HEARING NOTHING, UH, THERE ARE NO PUBLIC COMMENTS.
AGENDA ITEM FOUR, APPROVAL OF THE MINUTES FOR THE MAY 14TH, 2024.
CITY OF DALLAS HOUSING FINANCE CORPORATION MEETING.
UM, SO I'LL CALL FOR A MOTION IN A SECOND AND THEN I'LL SEE IF ANYBODY HAS ANY, UH, CHANGES.
SO DOES SOMEONE WANNA MOVE TO APPROVE? MOVE TO APPROVE MINUTES? YES.
AND A SECOND, SECOND ONE OF THE SEAN'S.
SO DOES ANYBODY HAVE ANY CORRECTIONS OR DISCUSSION OF THE MINUTES? NOT DISCUSSION OF THE MINUTES, BUT I THINK I MISSED ROLL CALL.
BUT YOU DIDN'T HAVE ANYTHING ON THE MINUTES TREASURER FAROH? I DO NOT.
NEXT ITEM ON THE AGENDA IS ITEM NUMBER FIVE, RESOLUTIONS FOR WEST VIRGINIA APARTMENTS.
A MULTI-FAMILY RESIDENTIAL DEVELOPMENT.
LOCATED AT 8,004 WEST VIRGINIA DRIVE IN THE CITY OF DALLAS, DALLAS COUNTY, TEXAS.
A CONSIDER AN ADOPTIVE FINANCING RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION, MULTI-FAMILY TAX EXEMPT BONDS.
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FANNIE MAE MBS SECURED SERIES 2024 A AND MULTIFAMILY HOUSING REVENUE BONDS SERIES 2024 B IN THE AGGREGATE PRINCIPAL AMOUNT OF UP TO $32 MILLION WITH THE PROCEEDS OF SUCH BONDS.THE BOND FINANCING TO BE LOANED TO 8,004 WEST VIRGINIA DRIVE, TEXAS OWNER LP.
THE BORROWER ES A PORTION OF THE COST OF THE REHABILITATION OF WEST VIRGINIA APARTMENTS.
A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 8,004 WEST VIRGINIA DRIVE, DALLAS, TEXAS.
THE DEVELOPMENT AND, AND B, CONSIDER AND ADOPT PARTNERSHIP RESOLUTIONS APPROVING THE FORM AND SUBSTANCE OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING AND REHABILITATION OF THE DEVELOPMENT.
AND CONTAINING OTHER PROVISIONS RELATED TO SUCH DEVELOPMENT, INCLUDING A RESOLUTION AUTHORIZING DHFC, WEST VIRGINIA LANDOWNER, LLC, TO ACQUIRE THE DEVELOPMENT AND ENTER INTO A A 99 YEAR GROUND LEASE WITH THE BORROWER AND RESOLUTIONS AUTHORIZING THE ADMISSION OF DHFC, WEST VIRGINIA GP, LLC, THE GENERAL PARTNER TO THE BORROWER AND FINANCING FOR THE DEVELOPMENT TO INCLUDE EQUITY FINANCING BY PNC BANK NATIONAL ASSOCIATION, THE BOND FINANCING, A MORTGAGE LOAN FROM PNC BANK NATIONAL ASSOCIATION, A BRIDGE LOAN FROM PNC BANK NATIONAL ASSOCIATION AND SUBORDINATE LOAN FROM WEST VIRGINIA APARTMENT'S LIMITED PARTNERSHIP.
SO BEFORE WE DO ANY DISCUSSION, UH, CAN I HAVE A MOTION, UH, IN FAVOR AND A SECOND? MOTION? DR.
SO, UM, I GUESS WE'LL DO, WE'RE GONNA DO A LITTLE PRESENTATION.
DO WE HAVE ANYONE FROM APRIL HOUSING ONLINE PRESENT OR DO YOU WANNA JUST I CAN JUST RUN THROUGH IT.
SO IF YOU GUYS RECALL, UM, WE INDUCED THIS PROJECT LATE LAST YEAR.
UM, IT IS A RENOVATION REPURPOSING OF, UH, REPURPOSING, BUT A REFRESH, RIGHT? IT'S, IT'S IN AN AREA THAT, UH, IT'S NEEDING SOME, SOME WORK.
AND IT'S A 204 UNIT DARK STYLE APARTMENT PROJECT.
UM, LIKE I SAID THAT IT HAS SEVEN BUILDINGS.
WE DON'T HAVE TO REZONE IT, WE DON'T HAVE TO DO ANYTHING.
IT'S JUST LET'S, LET'S GET THIS NEW BRUSH ROUND THE CAPITAL, LET'S GO ON AND, AND RENOVATE ALL THE INTERIORS.
UH, DO ANYTHING THAT NEEDS MAJOR UPGRADING ON NEXT TIERS AND, UH, SYNDICATED WITH THESE TAX CREDITS AND, AND THESE TAX EXEMPT POINTS.
UM, I KNOW IF THERE, THERE'S NOT A LOT TO, YOU GOTTA DO THIS ALL THE TIME,
THIS PROJECT, DO THEY HAVE A TARGET CLOSED DATE? YES, IT IS.
AT ONE POINT, IT WAS JULY, WAS IT JULY 8TH AT ONE? IT KEEPS MOVING A LITTLE BIT, RIGHT? YEAH.
ARE YOU ONLINE? DO YOU HAVE THIS BOOK HANDY? YES.
UM, THE LAST CLOSING DATE I THINK WAS, UH, JULY 18TH.
WAS THE, UH, THE, THE CURRENT TARGET.
I THINK I WAS THINKING OF MANDELA WAS EARLIER.
SO OUR, ALL OF OUR COUNCIL, OUR, UH, COUNCIL FROM CHAPMAN, OUR BOND COUNCIL, EVERYBODY HAS BEEN WORKING REALLY HARD.
I'VE SEEN DOCUMENTS FLYING BY CONSTANTLY EVERY SINGLE DAY, INCLUDING WEEKENDS.
AND SO, UM, SO I, I THINK THAT, UH, THAT WE HAVE EVERYTHING IN GOOD SHAPE NOW.
AND MANY EYES HAVE BEEN ON THESE DOCUMENTS AND EVERYONE HERE WAS PROVIDED ALL OF THE DOCUMENTS TO REVIEW IF THEY FELT LIKE READING A THOUSAND PAGES, REAL ESTATE DOCUMENTS, YOU KNOW, YOU HAVE AT IT.
BUT, UM, ANYWAY, THAT'S WHERE WE ARE.
I'M GONNA CALL THE QUESTION 'CAUSE IT'S A PRETTY STANDARD ONE.
I'LL MOVE TO CALL THE, WE ALREADY VOTED.
WE'VE ALREADY VOTED, WE VOTED INTO BONDS.
WE, WE HAVE NO CONNECTIONS FROM OUR BOND COUNCIL, IN HOUSE COUNSEL IN-HOUSE COUNSEL, UH, F FA ON ANY OF THESE ISSUES.
OR AT LEAST WHATEVER OBJECTIONS THEY HAVE, HAVE BEEN RESOLVED AND ARE CLEARLY LAID OUT, YOU KNOW, RESOLVED.
THEY, FROM OUR PARTNERSHIP STANDPOINT, WE WOULD CONSIDER THESE SUBSTANTIALLY FINAL.
THERE'S, UH, WORK TO BE DONE BETWEEN NOW AND, UH, SURE.
OUR CLOSING, BUT THE MAJOR ISSUES HAVE BEEN RESOLVED.
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DIRECTOR ALLEN, UM, DIRECTOR MARSHALL C UH, VOTE TO APPROVE.UH, VICE PRESIDENT GARCIA APPROVE.
OH, AND RYAN, OKAY, WAIT A SECOND.
SEVEN MINUTES FOR, THIS IS FOR APPROVING.
THIS IS APPROVING WEST VIRGIN, VIRGINIA.
EVERYONE JUST NEEDS TO GET TO THE CLOSING.
UM, I GET VERY EXCITED ABOUT
SO, ITEM IS ITEM SIX RESOLUTIONS RELATING TO RENEWAL OF THE CORPORATION'S PARTICIPATION IN THE SINGLE FAMILY HOME MORTGAGE PROGRAM.
A CONSIDER AND ADOPT A RESOLUTION APPROVING AN ASSIGNMENT AGREEMENT WITH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, T-D-H-C-A AUTHORIZING T-D-H-C-A TO ISSUE BONDS FOR THE PURPOSE OF OBTAINING FUNDS TO FINANCE HOME MORTGAGE LOANS FOR PERSONS OF LOW AND MODERATE INCOME.
AND B, CONSIDER AND ADOPT A RESOLUTION APPROVING AN APPLICATION TO THE BOND REVIEW BOARD FOR A SINGLE FAMILY PRIVATE ACTIVITY BOND ALLOCATION IN AN AMOUNT UP TO $64,819,515, AND APPROVING ALL OTHER MATTERS IN CONNECTION THERE WITH.
SO I DON'T KNOW IF WE, AARON, ARE YOU GONNA DO THIS? OR HE'LL TELL OR, SO WE, WE DECIDED JUST TO, TO REEDUCATE EVERYBODY 'CAUSE IT'S KIND OF A, A DIFFERENT PORTION OF, OF WHAT WE DO.
UM, WE'VE INVITED SCOTT FLETCHER FROM T-D-H-C-A.
HE, HE RUNS THIS PROGRAM FOR US, AND HE'S BEEN NICE ENOUGH TO COME AND HE IS ONLINE RIGHT NOW.
HE'S GOT A SMALL LITTLE PRESENTATION TO KIND OF REFRESH US UP TO, TO WHAT WE DO HERE.
UM, AND SO WE'LL LET HIM TAKE IT AWAY.
SCOTT, ARE YOU, CAN YOU HEAR US? ARE YOU ON? I, I CAN HEAR YOU.
I WANNA GO THROUGH THIS REALLY QUICKLY.
AND I THINK THE BIG DRIVER HERE IS, UM, YOU KNOW, THIS HAS BECOME A, A REALLY IMPORTANT PART OF EVERYTHING THAT WE DO, UM, AT T-D-H-D-A IN TERMS OF PROVIDING, UM, UH, SUBSIDIZED ESSENTIALLY, UM, MORTGAGE LOANS TO, UH, FIRST TIME HOME BUYERS ACROSS THE STATE.
AND, UH, AS YOU MAY OR MAY NOT KNOW, T-D-H-C-A GETS ABOUT $387 MILLION.
I THINK THAT WAS OUR NUMBER LAST YEAR IN VOLUME CAP.
UM, WE ISSUED, UH, WE'LL BE ISSUING AGAIN, UH, IN A COUPLE WEEKS HERE.
AND OVER THE LAST, UH, 24 MONTHS, WE'VE ISSUED OVER $2 BILLION IN, UM, IN BONDS, UH, TO FUND, UM, SINGLE FAMILY MORTGAGES FOR FIRST TIME HOME BUYERS ACROSS THE STATE.
SO OBVIOUSLY YOU CAN SEE HOW THAT MATH DOESN'T REALLY ADD UP IF WE'RE GETTING, UH, RIGHT AROUND 400, UH, MILLION A YEAR, UM, AND, UH, AND WE'RE SPENDING, UM, YOU KNOW, A BILLION DOLLARS A YEAR, UH, IT, IT, IT THAT IMPOSSIBLE WITHOUT THE HELP OF THESE, UH, VOLUME CAP ASSIGNMENTS, UH, FROM A LOT OF THE LOCAL HSB.
AND YOU GUYS HAVE BEEN SUCH A GREAT, UH, SUPPORTER.
UM, AND, UM, WE ARE, WE ARE TRULY GRATEFUL.
UM, YOU KNOW, I I, I ALWAYS LIKE TO SAY, UM, YOU KNOW, IF YOU DIDN'T PROVIDE VOLUME CAP, IT'S NOT LIKE WE WOULDN'T CONTINUE TO PROVIDE, UM, MORTGAGE LOANS TO, UH, TO PEOPLE IN THE, IN THE, IN THE DALLAS AREA.
BUT WHAT WOULD HAPPEN IS WE WOULD RUN OUT OF FUNDS AND THE ABILITY, UH, TO DO THAT.
AND SO WHAT WE REALLY HAVE TRIED TO DO, AND, AND HILLTOP HAS BEEN A, A TREMENDOUS, UH, PARTNER, UM, ON THIS.
AND, AND, UM, BUT WHAT WE REALLY HAVE TRIED TO DO IS LOOK AT THE HISTORICAL DEMAND WITHIN EACH COMMUNITY AND THEN, UM, ALIGN THAT THOSE VOLUME CAP CONTRIBUTIONS TO MAKE SURE THAT THE VOL, THAT THE VOLUME CAP DOLLARS THAT WERE ASSIGNED, UH, BY THE FEDERAL GOVERNMENT AND THEN BY THE STATE OF TEXAS TO THE DALLAS AREA, ARE ACTUALLY BEING USED IN THE DALLAS AREA.
AND SO THAT'S, THAT'S ONE OF THE PRIMARY DRIVERS THAT I REALLY WANNA MAKE CLEAR AS WE, AS WE START TO DISCUSS THIS.
UM, AND IF WE COULD KIND OF, I, I DON'T KNOW HOW MUCH OF THE PRESENTATION WE
[00:15:01]
WANNA GO THROUGH.I WANNA MAKE THIS PIECE REALLY QUICK.
UM, AND ALSO JUST FEEL FREE TO SHOUT, UH, INTERRUPT ME AND, AND, UH, ASK ANY QUESTIONS, UH, AS THEY COME UP.
I'M VERY, VERY HAPPY TO KIND OF STOP AND, AND, UM, ANSWER THE QUESTIONS.
UM, YOU KNOW, ONE OF THE, THE REASONS THAT WE HAVE BEEN UTILIZING THIS PROGRAM IS BECAUSE IT'S REALLY COST PROHIBITIVE FOR ANY OF THE LOCAL, UM, HSCS, UH, TO, TO ADMINISTER A BOND PROGRAM THEMSELVES.
THERE ARE A LOT OF PIECES THAT GO INTO THAT.
THERE'S A LOT OF EXPENSE, THERE'S A LOT OF ADMINISTRATIVE COSTS.
AND SO IT'S REALLY, WE KIND OF LOOK AT THIS AS, YOU KNOW, WE HAVE THAT INFRASTRUCTURE IN PLACE, WE HAVE THOSE RELATIONSHIPS IN PLACE, AND WE GET SOME ECONOMIES OF SCALE.
UM, AND SO, UH, UH, YOU KNOW, IN ADDITION TO KIND OF MANAGING THE PROCESS AND THE, THE SALE AND THE, UM, ORIGINATION AND THE MORTGAGES AND THE SERVICING OF THOSE MORTGAGES, UM, KIND OF LOOK AT US AS YOUR DEFACTO, UM, SINGLE FAMILY ISSUER IS, IS KIND OF HOW WE, WE WANT YOU GUYS TO CONSIDER THIS.
UM, AND, UH, YOU KNOW, ALL OF IT IS DRIVEN ON VOLUME CAP.
WE CAN'T ISSUE TAX EXEMPT DEBT WITHOUT THAT VOLUME CAP.
AND, UH, WE HAVE, UH, DONE VARIOUS THINGS TO TRY PRESERVE VOLUME CAP.
WE HAVE, UH, LAYERED IN SOME ADDITIONAL TAXABLE, UM, PAPER, WHICH DOESN'T REQUIRE VOLUME CAP, WHICH ALLOWS US TO, TO, UH, MAKE ADDITIONAL MORTGAGE LOANS.
UM, AND ALL OF THAT IS REALLY RATE DEPENDENT.
UM, YOU KNOW, THE DEAL THAT WE'RE, WE'RE DOING, UH, IN THE NEXT COUPLE WEEKS HERE IS ABOUT A 60 40 MIX BETWEEN TAX EXEMPT PAPER AND TAXABLE PAPER.
UM, AND OUR RATE DIFFERENTIALS ARE, ARE AROUND, UH, 75 TO A HUNDRED BASIS POINTS, UH, BETTER THAN WHAT OTHERWISE BE AVAILABLE IN THE MARKET.
AND SO THAT'S, THAT'S REALLY THE DRIVER OF THE PROGRAM.
WE TRY AND WE TRY AND WALK THE LINE AND, AND MANAGE, UH, UM, TO MAKE SURE THAT, UH, WE'RE PROVIDING RATES THAT, UH, MAKE HOME OWNERSHIP AFFORDABLE, WHICH MATTERS A LOT MORE, UH, NOW WITH, UH, IN A HIGHER RATE ENVIRONMENT AND HIGHER OVERALL COST ENVIRONMENT, UH, THAN IT, THAN IT DID.
UM, YOU KNOW, UH, WHAT, THREE OR FOUR YEARS AGO, UH, WHERE WE, WHERE EVERYTHING WAS PRETTY MUCH LOW INTEREST RATES, AND, AND YOU COULD, IT, YOU, YOU COULD AFFORD MORE HOME BECAUSE THE, THE RATES WERE LOWER.
SO THAT'S WHY THE IMPORTANCE OF THIS PROGRAM IS REALLY, UH, UM, ESCALATED IN, UH, IN THE LAST FEW YEARS.
WE CAN GO ON TO THE NEXT SLIDE.
UM, YOU KNOW, THIS JUST LISTS THE, THE CURRENT PARTNERS.
UM, OUR TOTAL INDENTURES ARE NOW ABOUT $2.5 BILLION.
IT'S ACTUALLY PROBABLY CLOSER TO 2.6, UM, WITH THIS NEXT SET OF ISSUANCE, BE JUST RIGHT UNDER $3 BILLION IN, UH, IN THE, IN THE, THE INDENTURES, UH, THAT WE MANAGE.
UM, THAT BASICALLY, YOU KNOW, A REALLY SIMPLE WAY TO LOOK AT THAT IS, I MEAN, WE HAVE $3 BILLION IN BONDS OUTSTANDING, AND WE HAVE THREE POINT SOMETHING BILLION DOLLARS IN MORTGAGE LOANS AS AN ASSET AGAINST THAT.
AND, UM, AND THAT'S BASICALLY, UH, YOU KNOW, WE ALSO HAVE A TBA PROGRAM, BUT THESE DOLLARS ARE USED SPECIFICALLY FOR FIRST TIME BUYERS, UM, AND SPECIFICALLY MEANT TO PROVIDE BELOW MARKET RATES, UH, TO THOSE QUALIFIED FIRST TIME, UH, BUYERS.
UM, AND WE CAN, WE CAN MOVE ON TO THE NEXT SLIDE.
AGAIN, I WANNA KEEP THIS QUICK AND, AND ANSWER ANY QUESTIONS THAT COME UP.
UM, YOU KNOW, SOME OF THIS I PROBABLY TOUCHED ON ALREADY.
UM, BUT WE DO, UH, THE BENEFITS TO THE LOCAL HFCS, UH, THE BENEFITS TO DALLAS, WE REALLY TRY TO ENSURE THAT THE STATE ASSIGNED VOLUME CAP THAT IS GIVEN TO, TO DALLAS BY THE STATE OF TEXAS, UH, UM, STAYS IN THE DALLAS COMMUNITY, STAYS WITHIN YOUR JURISDICTIONS.
WE MAKE SURE THOSE, WE WANNA MAKE SURE THOSE DOLLARS ARE USED THERE.
UM, AGAIN, LEVERAGE THE ECONOMIES OF SCALE.
YOU KNOW, WE DO THIS, WE ISSUE ABOUT FOUR TIMES A YEAR, UM, AND, UH, WE HAVE ALL THE RELATIONSHIPS IN PLACE.
UM, WHAT IT DOES IS ENABLES, UH, YOU KNOW, BELOW MARKET MORTGAGE LOANS TO FIRST TIME BUYERS AND VETERANS, UM, WITHIN THE COMMUNITIES.
UM, AND THEN WE, IT, IT'S NOT A BIG NUMBER, BUT, UH, WE DO, UH, PROVIDE AN ONGOING FEEDBACK TO, UH, EACH HSC, UH, FOR THE VOLUME CAP THAT THEY PROVIDED THAT HAVE HAS TURNED INTO MORTGAGE LOANS IN THEIR COMMUNITY.
UM, FOUR AND FOUR AND THREE QUARTERS BASIS POINTS GOES BACK TO, UH, GOES BACK TO THE CITY.
UH, IT'S, UH, REPORTED QUARTERLY AND PAID ANNUALLY, MOVE, MOVE FORWARD.
SO, GETTING INTO SOME SPECIFICS FOR DALLAS, UM, IN 22, YOU GUYS WERE KIND OF ENOUGH TO, UM, UH, ASSIGNED 25 MILLION TO US.
UM, AND THEN, UH, LAST YEAR YOU DID, UH, 61 MILLION.
UM, THAT TOTALS, UH, I'M GONNA DO THE MATH REALLY QUICK.
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OF THIS YEAR, UH, WE'VE DONE 290, UH, MILLION LOANS IN THE DALLAS, UM, HSD JURISDICTION, TOTALING 74 MILLION.UM, YOU KNOW, THE VOLUME CAP DOLLARS ARE, ARE THEORETICALLY GOOD FOR THREE YEARS.
UM, THE VOLUME THAT WE HAVE, UH, WE ARE, WE ARE PRETTY MUCH USING ALL OF THAT VOLUME CAP, UH, THAT, THAT CITY OF DALLAS IS ASSIGNING FOUR MORTGAGE LOANS IN THE CITY OF DALLAS.
AND SO WE'RE LOOKING AT, UH, UH, I THINK THE NUMBER THAT WE'RE LOOKING AT THIS YEAR IS, AGAIN, 61 ODD, UM, MILLION.
UM, AND WE CAN MOVE ON TO THE NEXT SLIDE.
UM, AND, UM, YOU KNOW, WE'VE GOT PROBABLY WHAT IT'S, UH, WE'VE GOT THE, THAT WAS THE MARCH DATA, SO WE'LL HAVE THE JUNE DATA, UH, AND, AND THEN, UH, YEAH, JUNE AND SEPTEMBER.
UH, SO THERE'S, UH, YOU KNOW, ANOTHER SIX MONTHS LEFT, UM, ON THAT PREVIOUS ASSIGNMENT.
UM, SO WE'LL, WE'LL DEFINITELY BE OVER ASSIGNED OVER, UH, UTILIZED, I GUESS WOULD BE THE WAY TO, TO SAY IT.
UM, BUT AGAIN, THAT DOESN'T MEAN, YOU KNOW, IF WE GET ANOTHER $20 MILLION MILLION IN LOANS, UH, ANOTHER 40 MILLION IN LOANS IN DALLAS, WE'RE STILL GONNA MAKE THOSE LOANS.
UM, IT'S NOT LIKE WE, WE STOP.
UM, BUT JUST TO KIND OF GIVE YOU DETAILS ON THE BORROWERS, UM, AND, AND SOME DEMOGRAPHICS, UH, SPECIFICALLY FOR YOUR, UH, JURISDICTION.
UM, YOU CAN SEE IT, UH, I DON'T REALLY NEED TO READ THROUGH IT, BUT, UM, AVERAGE BORROWER AGE IS 34.
UM, ABOUT A QUARTER OF A MILLION IS THE AVERAGE LOAN SIZE.
UH, YOU CAN SEE WHERE THE INTEREST RATE HAS, HAS, UH, WHAT THE AVERAGE INTEREST RATE HAS BEEN.
AND THEN ALL OF THOSE LOANS ARE EITHER FHA LOANS OR VA LOANS.
SO 100% OF THOSE LOANS, UM, ARE BEING MADE TO QUALIFIED, UH, QUALIFIED FIRST TIME BUYERS.
UM, AND THEN WE PROVIDED A BREAKDOWN OF THE DEMOGRAPHICS, UH, SO YOU CAN KIND OF SEE HOW THAT BREAKS DOWN.
UM, I WON'T GO INTO, UH, INTO THE DETAILS THERE, UH, BUT YOU CAN SEE WHERE THOSE, WHERE THOSE DOLLARS ARE, ARE BEING USED, UH, IN THE COMMUNITIES THAT, UH, ARE BEING SERVED, THE DEMOGRAPHICS THAT ARE BEING SERVED, UM, WITH THOSE LOANS, HOUSEHOLD INCOME, YOU KNOW, THIS ONE IS, IS, UH, KIND OF AN IMPORTANT ONE, UM, FROM MY PERSPECTIVE.
YOU KNOW, YOU WE'RE TALKING ABOUT $30 MILLION IN LOANS, UM, HELPING FAMILIES UNDER $60 MILLION OR 60, I WISH, RIGHT? UH, $60,000 A YEAR IN HOUSEHOLD INCOME, UM, AFFORD A HOME.
AND, UM, YOU KNOW, THOSE NUMBERS ARE, ARE, UH, ARE SO IMPORTANT TO ME.
AND IT'S, YOU KNOW, IT'S CERTAINLY WHY ALL OF US ARE IN THIS, UM, IN THIS GAME.
UM, YOU KNOW, HOME OWNERSHIP IS THE PATHWAY, UH, TO BUILD, UH, FAMILY AND GENERATIONAL WEALTH.
AND SO IT'S REALLY, UH, IT'S, IT'S MOVING TO SEE, UH, YOU KNOW, FAMILIES WITH HOUSEHOLD INCOMES UNDER 60, UNDER 80, $80,000 A YEAR, UM, OWN A HOME AND BE ABLE TO, UH, BUILD EQUITY, UH, IN THOSE HOMES.
SO THERE'S THE, THE QUICK DEMOGRAPHICS, AND THEN JUST FOR, UH, YOU KNOW, TO SHARE WHICH LENDERS IN THE, IN THE AREA ARE, UH, ARE REALLY DRIVING THE BUSINESS.
UH, WE PROVIDED THE FIRST, THE TOP 15 LENDERS.
YOU'LL NOTICE THAT DOESN'T, UH, ADD UP TO THE TOTAL 70 SOME MILLION DOLLARS THAT, UH, THAT WE'VE DONE IN THE DALLAS AREA OVER THE LAST, UH, COUPLE YEARS.
BUT, UM, YOU CAN KIND OF SEE WHO THE LENDERS ARE.
AND THE REASON, YOU KNOW, WE SHARE THIS IS BECAUSE WE WANT TO MAKE SURE, UM, AND I'M SURE IT WILL HAVE, WE'LL COVER THIS A LITTLE BIT LATER MORE, BUT WE WANNA MAKE SURE THAT WE ARE DOING EVERYTHING WE CAN TO PARTNER WITH EACH, UH, LOCAL HFC TO DRIVE AS MUCH, UH, HOME OWNERSHIP, UM, ACTIVITY AS WE POSSIBLY CAN.
AND I THINK WE COULD PROBABLY MOVE FORWARD.
'CAUSE I WANT TO TALK ABOUT MARKETING A LITTLE BIT, AND I KNOW THAT'S IN HERE.
UM, WE'LL, PRO PROCESS AND TIMELINE, I THINK WE'VE KIND OF COVERED, UM, IF ANYONE HAS ANY QUESTIONS ON THAT, UM, WE CAN CERTAINLY, UM, BETWEEN, UH, THE FOLKS AT HILLTOP AND, AND, UM, AARON, WE CAN CERTAINLY ANSWER THOSE QUESTIONS.
UM, JUST QUICKLY, THESE ARE THE DETAILS IN TERMS OF, UH, THE BASICS FOR IT'S, UH, FOR THE PEOPLE THAT ARE HELPED, IT IS FIRST TIME HOME BUYERS AND QUALIFIED VETERANS.
UH, WE PROVIDE 30 YEAR, UH, BELOW MARKET INTEREST RATE MORTGAGES.
UM, WE PROVIDE DOWN PAYMENT ASSISTANCE, UM, UP TO 5%.
LATELY IT'S BEEN, WE'VE BEEN, UM, ONLY ABLE TO PROVIDE CLOSER TO 3%.
UH, WE'RE DOING A MIX OF 3% AND UNASSISTED LOANS, WHERE THOSE UNASSISTED LOANS ARE ESSENTIALLY A BUY DOWN THAT WE FUND, UM, A BUYDOWN.
AND THAT'S REALLY, WE'RE DOING THAT BECAUSE OF AFFORDABILITY, BECAUSE OF THE IMPACT OF HIGHER INTEREST RATES, UH, MAKING SURE THAT THOSE MONTHLY PAYMENTS, UH, REMAIN AFFORDABLE.
UM, WHEN WE DO PROVIDE THOSE CPA, THE 3% THAT WE'RE DOING RIGHT NOW, THAT IS A 0%, UH, INTEREST, UH, DEFERRED REPAYABLE, SECOND LIEN, UH,
[00:25:01]
IT'S REPAYABLE ON SALE, UM, OF THE, UH, OF THE PROPERTY, UM, OR, UH, OR CLOSE OUT OF THE FIRST LIEN ON THE MORTGAGE, UH, WHENEVER THAT HAPPENS.AND THEN WE DO HAVE SOME MCC FUNDS AVAILABLE.
WE CAN COMBINE, UH, OUR OTHER PROGRAMS WITH MCC FUNDS.
SO, UH, MORTGAGE CERTIFICATE, UH, UH, MORTGAGE CREDIT CERTIFICATES ARE AVAILABLE, UH, ON A, THEY'RE AVAILABLE NOW.
UH, IT'S KIND OF HIT AND MISS GOING FORWARD ON HOW MUCH WE CAN DO ON THAT GOING FORWARD.
BUT AGAIN, ALL BORROWERS MUST MEET INCOME AND PROPERTY VALUE LIMITS.
UM, AND THIS IS KIND OF WHERE I WANTED TO GO NEXT, UM, AND WHERE I WANT, UH, JUST, YOU KNOW, NO COMMENTS, UH, NECESSARY.
UM, CERTAINLY ABLE, UH, CERTAINLY WILLING TO ANSWER ANY QUESTIONS.
BUT I THINK THE BIG THING HERE IS WE'RE, UH, WE'VE RECENTLY HIRED A NEW MARKETING, UH, TEAM.
UM, WE'RE GOING TO BE REACHING OUT, UH, TO EACH, UM, OF THE PARTNER, UM, HSCS TO DISCUSS WHAT WE CAN DO, UM, ALONG WITH YOU GUYS.
YOU GUYS KNOW YOUR AREA, YOU GUYS KNOW YOUR MARKETS, YOU KNOW THE PEOPLE, UM, UH, IN YOUR COMMUNITIES, UM, AND YOU KNOW HOW TO EXPAND THE REACH OF YOUR, UH, UH, YOUR PROGRAM, THEN, YOU KNOW, WHAT'S NEEDED.
AND SO WE WANNA MAKE OUR RESOURCES AVAILABLE, UM, IN PARTNERSHIP WITH HHSB, UM, TO MARKET AND, AND, AND PROMOTE, UH, SINGLE FAMILY HOME OWNERSHIP, UH, FOR QUALIFIED INDIVIDUALS IN YOUR AREA.
AND SO, UM, WE'LL BE, YOU KNOW, THIS IS AN ONGOING, UH, UH, PROJECT THAT WE'VE BEEN WORKING ON AND, AND WE'RE, WE'RE MAKING GOOD PROGRESS ON IT.
UH, THE NEW MARKETING FIRM HAS BEEN SELECTED, AND SO WE'LL BE DOING FOLLOW UP, UM, YOU KNOW, BEFORE THE END OF OUR FISCAL YEAR, WHICH IS, UM, AUGUST 31ST, UM, TO DISCUSS HOW TO MARKET, UH, IN YOUR AREA AND HOW TO, UH, HOW TO, HOW TO DRIVE THE, UH, HOME OWNERSHIP AND, UM, AND, UM, UH, USAGE OF THIS PROGRAM AS MUCH AS WE CAN.
UM, I THINK WE ARE READY TO MOVE FORWARD.
I DON'T THINK THERE'S MUCH LEFT HERE.
UM, WE'LL TOUCH ON THIS BRIEFLY.
I KNOW, UM, YOU KNOW, WE'VE HAD, UH, WE HAVE A FEW DIFFERENT HSC THAT WE'LL PROVIDE, UH, GIFT FUNDS.
UM, THOSE GIFT FUNDS ARE USED, UH, TO AS KIND OF ADDITIONAL DOWN PAYMENT MONEY.
UM, YOU KNOW, WE JUST, WE, IT, IT DOES PROMOTE, UM, HOME OWNERSHIP.
UM, WE'RE CERTAINLY HAPPY TO HAVE CONVERSATIONS ABOUT THAT IF THERE ARE FUNDS AVAILABLE.
UH, WE CAN KIND OF DISCUSS HOW THAT'S HELPFUL.
AND THAT'S ALSO PART OF THE MARKETING, UH, PIECE, UH, IN TERMS OF, OF, YOU KNOW, WE'LL, WE'LL DO CO-BRANDING, UM, UH, ON OUR WEBSITE, UH, TO PROMOTE, UH, UH, YOU KNOW, DOWN PAYMENT ASSISTANCE AND, AND GRANT FUNDS, UH, FOR, UH, FOR QUALIFIED BORROWERS IN YOUR AREA, IF THAT'S SOMETHING THAT THE, THAT THE CITY WOULD BE, UH, UH, INTERESTED IN DOING.
AND I THINK, UM, THAT ABOUT WRAPS US UP.
UM, I DO CERTAINLY WANNA, OH, I, I GUESS I SHOULD TOUCH ON THIS TOO, SINCE IT'S MY PRESENTATION.
UM, YOU KNOW, WE DO PROVIDE QUARTERLY REPORTING.
UH, BASICALLY THE INFORMATION THAT WE, UH, THAT WE JUST PROVIDED, THE, YOU KNOW, WITH THE DEMOGRAPHIC BREAKDOWN, UH, THE NUMBER OF LOANS, UH, WHAT THE, UH, HOUSEHOLD INCOME DATA IS, UH, WE PROVIDE ALL OF THAT, UM, INFORMATION ON A QUARTERLY BASIS, UM, TO THE HFC.
UM, WE'RE HAPPY, UH, TO KIND OF, UH, FORMAT THAT IN WHATEVER VERSION YOU GUYS ARE, ARE, UH, PREFER TO SEE IT IN.
UM, BUT, UH, YOU KNOW, ULTIMATELY WE, WE WANT TO MAKE SURE EVERYTHING THAT YOU NEED, ANY QUESTIONS THAT YOU HAVE THAT WE'RE AVAILABLE, THAT WE'RE ANSWERING THOSE QUESTIONS, AND YOU HAVE A, A CLEAR UNDERSTANDING OF HOW WE'RE USING THE, UH, THE VOLUME CAP DOLLARS THAT YOU'VE SO GRACIOUSLY, UH, ASSIGNED TO US.
SO, UM, SO THERE'S, SO THERE'S, UH, THERE'S A, UM, LIMIT ON THE, UM, AMOUNT OF THE LOAN, RIGHT? LIKE THERE'S SOME, UM, CEILING THERE, AND, UM, AND THEN THERE'S ALSO, UH, THEY HAVE TO PROVE A CERTAIN INCOME LEVEL.
IS THAT, ARE THOSE THE TWO QUALIFICATIONS? CORRECT, YEAH.
AND YOU KNOW, THERE ARE, THERE ARE ALL OF THE QUALIFICATIONS AND ALL THE LI LIMITATIONS ARE, ARE LISTED ON OUR WEBSITE.
UM, UM, YOU KNOW, I BELIEVE, UH, AND I'VE GOT SO MANY PROGRAMS IN MY HEAD RIGHT NOW, BUT YEAH, ALL OF THAT INFORMATION IS AVAILABLE.
YOU CAN KIND OF SEE, UM, BASED ON THE REPORTING THAT WE'VE PROVIDED, UM, YOU KNOW, IT'S UP TO ONE 20, UM, BUT YOU ALSO HAVE A CAP ON THE, ON THE, UM, ON THE, THE MAX PRICE OF THE, THE, THE PROPERTY.
UM, BUT IT, UH, YOU KNOW, IT'S, IT'S, IT'S OBVIOUSLY THERE ARE A LOT OF ELEMENTS TO THE PROGRAM THAT, UM, THAT
[00:30:01]
HAVE MADE IT VERY ACCESSIBLE AND, AND VERY SUCCESSFUL IN TERMS OF HELPING FOLKS, UH, AS BEEN AS DEMONSTRATED BY THE, THE $2 BILLION THAT WE'VE, UM, THAT WE'VE ISSUED OVER THE PAST.UM, UM, YOU KNOW, 48 MONTHS, SO, OR 24 MONTHS, SORRY.
HAS IT GENERALLY BEEN LOW DELINQUENCY RATES? YEAH, WELL, I, I THINK THAT'S AN INTERESTING COMMENT AND, AND, UM, AND APPRECIATED.
UM, YOU KNOW, WE ALWAYS HAD SLIGHTLY HIGHER, UM, DELINQUENCY NUMBERS THAN THAN OTHER STATES, UH, ON THE, UM, UM, ON FHA LOANS.
UM, WE ALSO HAVE THE PHENOMENON OF COMING OUT OF, UH, A GLOBAL PANDEMIC.
UM, AND, UH, THE IMPLICATIONS OF HAVING, YOU KNOW, FORBEARANCE, UH, PAYMENT FORBEARANCE, UM, MORATORIUM ON FORECLOSURES AND, UM, LOAN MODIFICATIONS.
AND SO THERE HAVE BEEN A LOT OF, THERE'S, I THINK, I GUESS THE BEST WAY TO SAY THIS, THERE'S A LITTLE BIT OF A HANGOVER, UM, ON ALL OF THIS RIGHT NOW.
ONE OF THE THINGS THAT I LOOK AT WHEN I, WHEN WE TALK ABOUT OUR CREDIT OVERLAYS AND, AND WHAT WE'RE WILLING TO DO, UM, I THINK THERE'S A FINE LINE.
AND I, YOU KNOW, I ALWAYS SAY, I DON'T WANNA BE THE, I DON'T WANNA BE THE, YOU KNOW, THE MORTGAGE GOD AND SAY WHO SHOULD AND WHO SHOULDN'T.
UM, BUT YOU ALSO DON'T WANNA PUT PEOPLE IN A SITUATION WHERE, UM, YOU'RE OVEREXTENDING THEM, RIGHT? AND YOU'RE SETTING THEM UP FOR FAILURE.
AND SO OUR PROGRAM IS SET UP RIGHT NOW, UM, WHERE IT IS A A A MIN IO OF SIX 20.
UM, AND, UM, AND BECAUSE OF SOME OF THE CHALLENGES WE'VE SEEN WITH DELINQUENCIES, WE'VE MADE SOME ADJUSTMENTS TO THE MAX, UH, DEBT INCOME, UH, RATIOS.
WE'VE, WE'VE LOWERED THOSE A LITTLE BIT, UM, SO THAT WE CAN ENSURE THAT THE LOANS THAT WE'RE MAKING, UM, HAVE A VERY HIGH PROBABILITY OF SUCCESS FROM A, FROM AN INDENTURE PERSPECTIVE, BECAUSE THERE'S TWO SIDES TO THIS EQUATION.
FROM, YOU KNOW, AS, AS MANAGING THIS PROGRAM FROM AN INDENTURE PERSPECTIVE, ALL OF THE LOANS THAT, THAT WE MAKE, UH, ARE SOLD, UH, AND, AND POOLED INTO JENNIE MAE, UH, PRODUCT, UM, WHICH IS GUARANTEED BY THE FEDERAL GOVERNMENT, RIGHT? AN INDENTURE PERSPECTIVE.
THE DELINQUENCIES IS SOMETHING THAT, OR SOMETHING THAT WE MANAGE THROUGH, UM, DEFAULTS OR SOMETHING THAT WE MANAGE THROUGH.
UM, BUT FROM A MISSION PERSPECTIVE, IT'S A DIFFERENT SET OF, OF QUESTIONS FOR ME.
AND, AND FOR ME, IT, IT REALLY IS ABOUT MAKING SURE THAT THE LOANS THAT WE'RE MAKING AVAILABLE AND THE, THE, THE WAY THAT WE'RE USING THESE DOLLARS ACTUALLY SERVE THE MISSION, WHICH IS HOME OWNERSHIP, STABILITY, UM, YOU KNOW, MAKING SURE THAT THESE PEOPLE ARE GONNA HAVE SUCCESS.
UM, AND, AND, YOU KNOW, NOT, NOT OVEREXTENDING PEOPLE, NOT, NOT, UH, YOU KNOW, PUTTING THEM IN A POSITION TO FAIL.
UM, THERE ARE ALWAYS ELEMENTS THAT YOU CAN'T CONTROL, UM, ECONOMIC FACTORS THAT, THAT CHANGE, UM, PERSONAL FACTORS THAT CHANGE, THOSE ARE THINGS THAT YOU CAN'T PREDICT.
SO WE TRY, UH, AS MUCH AS WE CAN TO, YOU KNOW, MAKE SURE THE PROGRAM IS, IS, UH, ACCESSIBLE, AVAILABLE, UM, AND, UM, YOU KNOW, MAKE SURE WE'RE BEING GOOD STEWARDS OF THE DOLLARS, UM, TO SERVE THE MISSION.
BECAUSE IF WE, IF WE, IF WE'RE NOT GOOD STEWARDS, UH, YOU'RE SETTING PEOPLE UP FOR FAILURE, YOU'RE SETTING THE PROGRAM UP FOR FAILURE.
THERE ARE A LOT OF FACTORS I THINK, THAT GO INTO PLAY, UH, KIND OF IN HOW, IN HOW WE ADMINISTER, UH, THE DOLLARS.
BUT I, IT'S, I, WE TRY AND KEEP IT AS, UH, AS, UH, LIBERAL AND AS ACCESSIBLE AS WE POSSIBLY CAN TO HELP AS MANY PEOPLE AS WE POSSIBLY CAN.
SCOTT, I, I JUST WANNA EMPHASIZE TOO, FOR THE BOARD AND FOR ANYONE LISTENING, UH, YOU KNOW, NOT EVERYONE CAN OR EVEN SHOULD OWN A HOME, YOU KNOW, IT'S A GOAL FOR A LOT OF PEOPLE, BUT, YOU KNOW, WE DO OUR BEST THROUGH THIS PROGRAM TO, TO HELP THOSE WHO WILL QUALIFY, YOU KNOW, MAYBE NOT FOR CONVENT LOAN, BUT, BUT FOR SOMETHING A LITTLE MORE COST, AND WE HELP THEM REACH THAT GOAL.
AND I MEAN, I'M PROUD THAT YOU GUYS HAVE BEEN ABLE TO SERVE, LIKE I'M LOOKING AT THE NUMBERS HERE.
THE MAJORITY OF THE BORROWERS ARE, YOU KNOW, BLACK, HISPANIC, OTHER, OTHER MINORITY BORROWERS.
THEY'RE, YOU KNOW, OVER HALF ARE LESS THAN 80 K AND EVEN MORE OR LESS THAN 60 K, YOU KNOW, SO THIS IS, THIS IS THE GROUPS THAT WE'RE TRYING TO TARGET, THOSE WHO HAVE HISTORICALLY NOT HAD A LOT OF FAMILY WEALTH, AND THEN NOW THEY'RE GONNA BE ABLE TO BUILD THAT IF THEY'RE ABLE TO, TO PURCHASE A HOME AND, YOU KNOW, KEEP MAKING PAYMENTS AND, AND LIVING THERE AND BUILDING THEIR COMMUNITY.
I THAT'S WHERE YOU, THAT'S WHERE WE MOVE THE NEEDLE, RIGHT? THAT'S, THAT'S, UH, THERE'S A REASON THAT, THAT THE PROGRAMS ARE, ARE, UH, DESIGNED THE WAY THEY ARE.
UM, AND AGAIN, IT IS ABOUT, UH, IT IS ABOUT LONG-TERM IMPACT.
[00:35:01]
I'M VERY PROUD, UH, TO SIT IN THIS SEAT AND VERY PROUD TO HAVE THE OPPORTUNITY, UM, TO DO THIS, UM, AND HUMBLED AT THE SAME TIME.IT'S, UH, IT'S A, UH, IT'S A GREAT HONOR TO BE ABLE TO HELP HELP PEOPLE, UM, AND, AND ADMINISTRATOR ADMINISTER THESE PROGRAMS. AND AGAIN, WE CAN'T REACH NEARLY AS MANY WITHOUT THE, UH, THE VOLUME CAP, UH, ASSIGNMENTS, UM, FROM, UH, FROM THE LOCAL HSC, UH, LIKE YOURSELF.
IT'S JUST, IT, IT IS THE LIFEBLOOD OF WHAT WE DO RIGHT NOW.
WHAT'S OUR CURRENT MARKETING STRATEGY YOU THINK THAT WE'RE MAXIMIZING OUR REACH OR ONCE WE PAIR UP WITH THEM WOULD BE, ACCORDING TO THE NUMBERS WE'VE USED, ALL THE CAP THAT WE, WE'VE ASSIGNED TO THEM.
SO I THINK THE MARKETING IS REACHING ENOUGH LENDERS WHERE THE, THESE LOANS ARE BEING ROLLED OUT.
SEEMS LIKE IT'S TO THE LENDERS.
THE LENDERS ARE AWARE AND THEY'RE THE ONES THAT REALLY HAVE THE MARKETING WAS PRESENCE TO KIND OF, AND I'M SURE THEY MAYBE, UM, COORDINATE WITH REALTORS.
THAT'S, THAT'S THE ADVANTAGE FOR USING P IS THAT THEY HAVE THOSE CONNECTIONS AND THEY'RE FAMILIAR AND HAVE THOSE, I GUESS THE, THE EDUCATIONAL APPARATUS SET UP THAT THEY BUILD LENDERS ON THIS PRODUCT, RIGHT? IT'S, IT'S, IT'S A PROCESS THAT YOU HAVEN'T OFFERED THIS BEFORE, BUT A
AND IT'S DIFFERENT FOR THE COMMUNITY, RIGHT? UM, YOU KNOW, IT, IT REALLY, WHAT YOU GUYS ARE DOING REALLY WORKS.
UM, WHEREAS, YOU KNOW, WE LOOK AT HERE IN AUSTIN, UM, YOU KNOW, WE HAVE, WE HAVE TRAVIS COUNTY, AND WE'RE HAVING A HARD TIME USING THE FUNDS JUST BECAUSE PEOPLE CAN'T FIND THE HOMES, UH, TO BUY.
AND SO, AND I THINK IT SPEAKS TO, UH, YOU KNOW, THE PROGRAM, UH, AND, AND YOUR COMMUNITY, UM, AND HOW YOU'RE MAKING IT WORK.
UM, BUT AGAIN, YOU KNOW, I, I'M ALWAYS, UH, SO, SO CERTAIN IN THESE COMMUNICATIONS TO SAY, IF YOU GIVE ME 200 MILLION IN VOLUME CAP AND I HAVE $300 MILLION IN LOAN DEMAND THERE, I'M GOING TO MAKE THOSE LOANS AS, AS LONG AS I CAN UNTIL I RUN OUT OF FUNDS.
AND SO, UH, YOU'RE NOT CAPPED OUT BY THE VOLUME CAP, UH, ASSIGNMENT.
I JUST WANNA MAKE SURE THAT'S VERY, VERY CLEAR.
UM, WE CERTAINLY DON'T HAVE A PROBLEM, UH, WITH DEMAND IN THE, IN THE AREA, BUT, YOU KNOW, I THINK ONE OF THE THINGS THAT WE LOOK AT ON THE MARKETING SIDE IS, IS THERE ARE GONNA BE BUYERS THAT MAYBE DON'T QUALIFY AS FIRST TIME HOME BUYERS, BUT THEY MAY BE QUALIFY FOR SOME OF OUR OTHER PROGRAMS. AND SO THAT'S PART OF THE MARKETING AS WELL.
SO THESE ARE DOLLARS THAT SHOW UP JUST IN THESE FIRST TIME, UH, JUST IN THIS, MY FIRST TEXAS HOME PROGRAM.
BUT THERE ARE ARE OTHER PROGRAMS THAT WE HAVE AND, AND, UM, MAKING SURE THAT, UH, BORROWERS, UH, LENDERS, UH, REALTORS ARE AWARE OF SOME OF THESE OTHER PROGRAMS BECAUSE WE'RE REALLY TRYING TO MOVE THE NEEDLE ON THOSE AS WELL, UH, AND BE, UH, VERY COMPETITIVE, UH, IN TERMS OF RATES, UH, ON THOSE PROGRAMS AS WELL.
SO EVEN IF SOMEONE MAYBE DOESN'T QUALIFY FOR THIS, WE WANNA LEVERAGE THIS PROGRAM INTO OTHER POTENTIAL BORROWING, UM, OPPORTUNITIES FOR PEOPLE THAT MAYBE OTHERWISE COULDN'T AFFORD OR QUALIFY, UH, FOR A, A, A NORMAL MARKET, UH, PRODUCT.
SO, UM, DOES IT HAVE TO BE STRICTLY A SINGLE FAMILY HOME OR COULD IT BE A TOWN HOME? YEAH, TOWN HOME CONDO.
UH, IT'S A SINGLE FAMILY PROPERTY.
IT, IT WOULDN'T BE A MULTI-FAMILY PROPERTY.
THAT'S REALLY THE ONLY LIMITATION, BUT CERTAINLY, UM, UH, YOU KNOW, UH, A SINGLE FAMILY HOME, A TOWN HOME CONDOMINIUM, ALL OF THAT WOULD QUALIFY UNDER THE PROGRAM.
AND A DUPLEX OWNER OCCUPIED DUPLEX OR TRIPLEX, IS THAT INCLUDED OR NOT INCLUDED? UH, THAT'S A GREAT QUESTION.
I CAN, LET ME GET BACK TO YOU ON THAT ONE.
UM, I DON'T THINK YOU COULD BUY THE WHOLE THING AND THEN RENT OUT A PORTION.
UM, I, IF IT WAS, IF IT WAS CONDOED OUT WHERE YOU WERE ONLY BUYING ONE PORTION OR ONE HALF OF THAT DUPLEX, OR ONE THIRD OF THAT PLEX OWNER-OCCUPIED.
YEAH, I BET IT'S ONLY OWNER OCCUPIED.
SHOOT, YOU BUY ONE HALF THE DUPLEX, YOU JUST CAN'T BUY BOTH SIDES OF PLEX OUT.
NOT THAT YOU WOULD AFFORD THAT.
YEAH, I DON'T THINK IT CERTAINLY, IT CERTAINLY FEELS LIKE THAT'S THE WAY IT SHOULD BE, BUT YEAH.
YOU KNOW, BUT, BUT YEAH, OFTEN KIND OF FOUR UNITS OR LESS IS KIND OF VIEWED AS SINGLE FAMILY AND A LOT OF REAL ESTATE REALMS. SO JUST CURIOUS.
UM, I'VE BEEN VERY HAPPY WITH THE PROGRAM OVER THE LAST TWO YEARS.
IT TAKES STAFFORD AND OFF OF Y'ALL.
HILLTOP IS GREAT AT HELPING OUT WITH THIS, SO I'M WILLING TO MAKE A MOTION TO SUPPORT IT AS WRITTEN SECOND.
THAT WAS GARCIA AND MORE, RIGHT? OKAY.
WE REALLY APPRECIATE YOU DOING THIS PRESENTATION.
IT'S BEEN SO INFORMATIVE FOR US AND WE'RE REALLY HAPPY TO, TO GET TO MEET YOU AS WELL.
[00:40:01]
I, I'M SO GRATEFUL AND THANK YOU FOR, UH, ALLOWING, INVITING ME AND ALLOWING ME TO PARTICIPATE.UM, I ALWAYS JOKE THAT, UM, I, I TAKE SHORT QUESTIONS AND GIVE LONG ANSWERS, AND SO I APOLOGIZE FOR THAT
UM, YOU, YOU CERTAINLY KNOW HOW TO REACH US AND, AND, UH, THANK YOU AGAIN FOR YOUR TIME.
I'M GOING DOWN THE LIST HERE REALLY QUICK.
UH, PEGGY COLLINS DID JOIN US.
DIRECTOR MARSHALL C APPROVE TREASURER FAROH.
VICE PRESIDENT GARCIA APPROVE.
DIRECTOR ROBINSON APPROVE, DIRECTOR MOORE APPROVE.
SO, UM, THAT WAS ALL OF OUR VOTING MOTIONS.
I'M MOVING ON TO ITEM NUMBER SEVEN IN THE AGENDA, THE REVIEW AND DISCUSSION OF DHFC TREASURER'S REPORT FOR THE FOUR MONTH PERIOD ENDING ON APRIL 30TH, 2024.
YES, I THINK SHANNON ANDRES HERE.
SHANNON, ARE YOU READY? YES, ERIN, I AM HERE.
UM, JUST TO LET YOU KNOW, THIS IS, UH, JUST FOR THE FOUR MONTHS ENDED FOR APRIL 30TH.
AND, UM, YOUR CASH AND CASH EQUIVALENCE AS OF MARCH OR OR APRIL 30TH, 2024 WAS 15, UH, 0.8 MILLION UP FROM 14,000,583 AT THE BEGINNING OF THE YEAR.
SO AS WE TALKED ABOUT IN THE PREVIOUS BOARD MEETINGS, THIS HAS TO DO WITH THE MARCH RECEIPTS OF THE, THE CLOSING FEE RELATED TO DOMAIN AT MIDTOWN TOWN FOR ABOUT 638,000 OF THAT INCREASE.
SO THAT'S DEFINITELY A BIG CASH INCREASE AS WELL AS RECEIVING ANNUAL ISSUER FEES DURING THESE FIRST FOUR MONTHS OF, UH, OVER 133,000.
SO YOUR TOTAL INCOME FOR THESE FOUR MONTHS TOTALS, UH, JUST OVER 2 MILLION.
UM, AS COMPARED TO THE PRIOR YEAR.
AND AGAIN, THIS HAS TO DO, UH, JUST WITH THE LEVEL OF ACTIVITY AND WHAT'S IN THE PIPELINE IN THESE TWO YEARS.
IN THE FIRST FOUR MONTHS OF 2023, THAT TOTAL WAS JUST UNDER 1 MILLION.
SO OBVIOUSLY HAVING A A, A MUCH FASTER START TO THE YEAR.
UM, AND THINGS ARE KIND OF ACCUMULATING IN THE PIPELINE FOR REVENUE.
I'M NOT EVEN GONNA MENTION THEM UNLESS SOMEONE WANTS TO TALK ABOUT SOME IN PARTICULAR.
UH, WE DO NOTE THAT, YOU KNOW, WE HIT, YOU KNOW, THAT THAT PERSONNEL REIMBURSEMENT IS THE MAIN REASON FOR ANY KIND OF VARIANCES AND BUDGET TO ACTUAL, THAT YOU MIGHT SEE THERE AS PREVIOUSLY DISCUSSED.
SO THE NET CHANGE IN THESE FOUR MONTHS, UH, IN THE FINANCIAL POSITION IS JUST OVER 2 MILLION.
MARCY
WE'LL, SHOWING THOSE EXPENSES SOON.
NO PROFESSIONAL EXPENSES WILL BE GOING UP, UH, HERE VERY SHORTLY.
IN FACT, I, I'M PUTTING, YOU KNOW, SOMETHING IN PLACE SO WE CAN BE SURE WE'RE ACCRUING THOSE.
I MEAN, THERE ARE BILLS ON MOST OF, YOU KNOW, ALMOST A HUNDRED PERCENT OF THE PROFESSIONAL FEES.
SO, UH, THOSE WILL BE ACCRUING, UM, AND THEN GET PAID.
BUT, UH, THANK YOU MARCY, UH, QUESTIONS I THINK REALLY, YOU KNOW, DONE A LOVELY JOB.
OKAY, UM, MOVING ON TO, UH, DISCUSSION OF THE CORPORATIONS PIPELINE REPORT AS OF JUNE 7TH, 2024.
UM, HAVEN'T CLOSED ANYTHING ADDITIONAL, BUT WE'RE ABOUT TO, WE HAVE THE ACCESS DEAL THAT IS MOVING TOWARDS THERE.
UM, WE WILL NOW BE MOVING TOWARDS CLOSING FOR WEST VIRGINIA APARTMENTS, AND I THINK NEXT MONTH WE'LL ALSO HAVE THE ELLO THAT IS, UM, SET TO CLOSE.
THERE ARE A FEW, UH, POSSIBLE APPLICATIONS NEXT MONTH.
I'VE BEEN TALKING ABOUT SEVERAL DEVELOPERS KICKING AROUND SOME EXCITING THINGS.
I'LL, I'LL SEND YOU THE INFORMATION ON THOSE AS SOON AS IT, IT BECOMES AN ACTUAL, UM, APPLICATION FOR THE 24 PROGRAM.
[00:45:01]
JUST FOR NEXT MONTH AREN'T TAX CREDIT WORKFORCE SKILLS, RIGHT? YEAH.SORRY, SOME OF THESE AREN'T TAX CREDIT, SO JUST DO DEVELOPMENT STUFF.
UM, I THINK IT'S, HOPEFULLY IT'LL WORK OUT, BUT I THINK, UM, GEORGE WASN'T, AREN'T WE? OR MAYBE BRAXTON, WHOEVER, UH, I THOUGHT THERE MIGHT BE A TAX CREDIT DEAL.
CARLA ILLINOIS GET AN ALLOCATION.
THAT'S HIGHLINE ILLINOIS MIGHT BE, UH, COMING BACK TO US SHORTLY.
UH, ANY QUESTIONS ON THE PIPELINE OF ANYBODY? OKAY, SO HIGHLINE, WHAT OTHER DEALS ARE WAITING OR AWAITING A BOND RESERVATION? DO WE HAVE, I THINK THE PARADISE GARDENS DEAL IS AWAITING, IS THAT ONE ISSUER ONLY? NO, THAT ONE.
THAT ONE IS A PARTNERSHIP PARTNERSHIP.
I THINK THAT WON'T BE TILL AT LEAST AUGUST.
UM, AND THEN WE'RE WAITING ON THE GOLD MARK PROPERTY.
UM, AND I THINK WE'LL ALSO SEE BRIDGE AT LUKE 12 WILL COME FOR AN VIEW NEXT MONTH.
UM, BUT THESE ARE ALL STILL DVD AND UH, SORRY BRAXTON AGAIN, THERE'S A TENANT AND LOSS IS ALSO IN LINE TENNIS.
AND IS AND THAT ONE'S LOOKING, HOW'S THAT ONE LOOKING? THAT THAT ONE, THAT'S THE LAST ONE IN LINE FOR, FOR DALLAS.
SO THAT ONE'S GONNA BE AFTER PARADISE CARD IS PROBABLY I SEPTEMBER, MAYBE OCTOBER.
GOD THE LOTTERY IS LIKE IN WHAT, OCTOBER, NOVEMBER.
SO IT'S LITERALLY ONE YEAR AFTER LOTTERY.
THEY MAY OR MAY NOT GET THE RESERVATION.
YEAH, I THINK THEY CAME IN AFTER THE LOTTERY OR THIS PARIS OR DID PARADISE GARDEN
BUT MAYBE THAT'S ALSO WHY A LOT OF THE ONES WE'VE BEEN CLOSING, THE DEVELOPER HAD ALREADY BOUGHT THE PROPERTY.
SO THEY CLOSE TESTAMENT JUST TO THE MARKET FORCES RIGHT NOW.
EVERYBODY, IF YOU CAN GET ANY DEAL DONE, YOU'RE A LUCKY PERSON TO GET FINANCED AND UNDER A CONSTRUCTION MODEL, LIKE IT'S, IT'S VERY HARD RIGHT NOW.
UM, SO I THINK SELLER WOULD HAVE TO BE A LITTLE MORE PATIENT.
UH, AT LEAST ONCE WE DO GET AN ALLOCATION, YOU KNOW, THE SURE THEY CLOSE IS BETTER.
SO, UM, THEY, IT GOING BE A LITTLE PATIENT, BUT I THINK BOTH THE TWO THAT ARE CLOSING NEXT MONTH, THE DEVELOPER PURCHASED THE YEAH, THEY WERE PREVIOUSLY ON ALREADY.
SO JUST THEY TOOK THAT RISK UPFRONT.
JUST CLOSE ON IT AND THEN HOPEFULLY YOU GET SOME BONDS.
ANY OTHER, NO OTHER QUESTIONS ON THE PIPELINE? ALRIGHT THEN WE ARE READY TO ADJOURN.
IT IS 1250 AND OH, UM, FOR THE BOARD MEMBERS THAT ARE ON ZOOM, UM, WE WERE, WE HAD CONSIDERED CHANGING THE JULY MEETING TO THE 16TH, BUT NOW WE MAY PUSH IT BACK TO THE NINTH.
SO MAYBE, UH, ERIN AND JACKIE WILL SEND SOMETHING OUT TO EVERYONE AND SEE IF WE CAN GET QUORUM, YOU KNOW, WHICH ONES WE CAN GET QUORUM FOR
SO, UM, SO UM, BE ON THE LOOKOUT FOR THAT.
AND EVERYBODY HAVE A GOOD SUMMER UNTIL WE MEET.