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GOOD.

[00:00:01]

GOOD AFTERNOON

[Dallas Housing Finance Corporation on July 16, 2024.]

EVERYONE.

IT IS 1203 AND WE WILL CALL THIS MEETING TO ORDER.

UM, AARON, CAN YOU START WITH ROLL CALL PLEASE? SURE.

IF YOU GUYS CAN JUST SAY HERE, PRESENT OR SOMETHING WHEN I CALL YOUR NAME.

UH, SEAN ALLEN.

HERE.

JACK MARSHALL.

C HERE.

TATIANA FARRELL.

WELL, SHE'S ON HER WAY HERE IN FIRST, SO WE'LL ON THAT.

PATTY COLLINS.

OKAY.

KEVIN HINTON.

HERE.

BRIAN GARCIA.

DAVID ELLIS.

DIRECTOR FARRO.

DIRECTOR.

FAROH.

DAVID ELLIS HERE YET? NOT YET.

UM, MARCY .

HERE.

OLIVER ROBINSON? HERE.

RYAN MOORE.

HERE.

PUBLIC PAGE? HERE.

HERE.

ALRIGHT.

WE HAVE A QUORUM.

EXCELLENT.

OKAY, MOVING TO THE NEXT AGENDA ITEM, UH, PUBLIC COMMENT ON ITEMS FOUR THROUGH 10.

UM, ANYONE HERE? CAN PUBLIC COMMENT ANYBODY ONLINE GOING ONCE, TWICE.

OKAY.

AND A PUBLIC COMMENT.

WE WILL MOVE ON TO THE NEXT ITEM.

APPROVAL OF THE MINUTES FROM JUNE 11TH, 2024.

DHFC MEETING.

UM, ARE THERE ANY AMENDMENTS TO THE MEETING MINUTES? SEEING NONE, WE WILL, UM, ENTERTAIN A MOTION TO APPROVE THE MINUTES.

SO MOVED.

SECOND.

SECOND.

ALL THOSE IN FAVOR, PLEASE SAY AYE.

AYE.

A AYE.

AYE.

BE OPPOSED.

SEEING NONE MINUTES ARE APPROVED.

WE'LL MOVE ON TO ITEM NUMBER FIVE.

PUBLIC HEARING PURSUANT TO SECTION 3 94 0.905925 A OF THE TEXAS LOCAL GOVERNMENT CODE ON POSSIBLE ISSUANCE OF BONDS BY THE CORPORATION DEFIANCE THE ACQUISITION REHABILITATION OF THE MANDELA 150 UNIT MULTIFAMILY RESIDENTIAL DEVELOPMENT, LOCATED AT 2000 HIGHLAND ROAD, DALLAS, TEXAS 7 5 2 2 8 TO BE OWNED AND OPERATED BY THE MANDELA APARTMENT LLC WITH DHFC, THE MANDELA MANAGING MEMBER LLC AS A WHOLLY OWNED AFFILIATE OF THE CORPORATION TO BE AMENDED AS THE MANAGING MEMBER.

UM, AARON, DO YOU HAVE A PRESENTATION ON THAT, ADAM? NO, THIS IS JUST A STATUTORY REQUIREMENT, I GUESS.

SHORT DONE.

BRIAN, CAN YOU SPEAK TO THAT? YEAH.

UM, UM, THERE IS A SEE ON CAMERAS IF GEORGE WAS ON.

I HEARD YOU NOW.

I HEARD THAT ALL OVER TO, UH, GEORGE, BUT GEORGE'S NOT ON YET.

OKAY.

YEAH.

SO, UH, UNDER CHAPTER 3 94, UM, IT'S, YOU KNOW, SECTION 3 94 9 0 2 5K.

UM, THERE'S A PROVISION IN THERE, UH, THAT STATES THAT IF AN HFC IS GOING TO, UH, TAKE OWNERSHIP OF A, OF A MULTIFAMILY DEVELOPMENT, THEN THERE NEEDS TO BE, UH, A HEARING.

THE WAY THAT'S TYPICALLY DONE IS THROUGH THE PROCESS, WHICH WE HAD HERE AND WE COULD RELY ON, BUT IT'S BEEN SOMETHING THE ATTORNEY GENERAL HAS BEEN SPECIFICALLY ASKING FOR.

UM, SO RATHER THAN HAVE TO RELY ON AN EXPLANATION OF WHY THE TEMPER HEARING COMPLIES, UH, IN TALKING WITH GRACE, WELL, UH, WE THOUGHT IT WAS, UH, THE BEST PRACTICE TO JUST PUT THIS ON THE, UH, AGENDA.

HAVE A SPECIFIC ITEM FOR PURPOSES OF THAT, UH, THAT COMPLIANCE WITH THAT SECTION.

I THINK GOING FORWARD, UM, AGAIN, YOU TALKING WITH GRACE, WE JUST REFERENCE THAT SECTION IN THE HEARING.

UM, SO WE WON'T HAVE MIS SEPARATE AN ITEM PRESUMABLY, BUT, UH, FOR THIS DEAL, UH, THAT'S WHY WE HAVE IT HERE TODAY.

UH, SO RYAN, WOULD I JUST OPEN A PUBLIC MEETING? YES.

UM, IS ANYONE OPPOSED TO ME OPENING A, A PUBLIC HEARING RIGHT NOW? OKAY.

SEEING NONE, WE SHALL OPEN A PUBLIC HEARING.

WE ARE NOW IN A PUBLIC HEARING AND WE ARE OPEN FOR ANY COMMENT.

SEEING NONE, DOES ANYONE OPPOSED TO CLOSING THE PUBLIC HEARING? OKAY, THEN WE'LL CLOSE THE PUBLIC HEARING, RIGHT? ANY ACTION ITEM NEEDED OR JUST THAT'S IT.

OKAY.

MOVING RIGHT ALONG THEN.

UM, ITEM NUMBER SIX, PUBLIC HEARING PURSUANT TO SECTION 3 94 0.90258.

THAT'S LOCAL GOVERNMENT CODE ON POSSIBLE ISSUANCE OF BONDS BY THE CORPORATION TO FINANCE THE ACQUISITION AND REHABILITATION OF WEST VIRGINIA APARTMENTS AT 202 UNIT MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 8,004 WEST VIRGINIA DRIVE, DALLAS, TEXAS 7 5 2 3 7 TO BE OWNED AND OPERATED BY 8,004 WEST VIRGINIA

[00:05:01]

DRIVE, TX OWNER LP WITH DHFC WEST VIRGINIA, G-P-L-L-C AS WHOLLY OWNED AFFILIATE OF THE CORPORATION TO BE ADMITTED AS THE GENERAL PARTNER.

SAME DEAL.

SAME.

ANYONE OPPOSED TO US OPENING A PUBLIC HEARING RIGHT NOW, THEN WE SHALL OPEN A PUBLIC HEARING.

WE ARE NOW IN THE PUBLIC HEARING.

AND IS THERE ANY COMMENT? HEARING NONE.

WE SHALL CLOSE THE PUBLIC HEARING.

AND NOW MOVING ON TO NEXT ITEM.

UM, OUR FIRST ACTION ITEM OF THE AGENDA RESOLUTION FOR ACCESS.

KESSLER PARK IN MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 2,400 FORT WORTH AVENUE IN CITY OF DALLAS, DALLAS, DALLAS COUNTY, TEXAS.

UH, CONSIDER AND ADOPT A PARTNERSHIP RESOLUTION APPROVING THE FORM AND SUBSTANCE OF AND AUTHORIZING THE EXECUTION DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING AND OPERATION OF ACCESS.

KESSLER PARK OF THE DEVELOPMENT AND CONTAINING OTHER PROVISIONS RELATING TO SUCH DEVELOPMENT, INCLUDING RESOLUTION APPROVING THE GROUND LEASE BETWEEN ACCESS, KESSLER PARK, OLDCO, LP, THE BORROWER, AND DHFC ACCESS KESSLER PARK LANDOWNER LLC APPROVING THE REGULATORY AGREEMENT WITH RESPECT TO THE DEVELOPMENT.

AUTHORIZING FINANCING FOR THE DEVELOPMENT TO INCLUDE AN EQUITY INVESTMENT BY ACCESS PARTNERS, J-B-L-L-C TO THE BORROWER AND LOAN FINANCING FROM WALKER DUNLAP, LLC TO THE BORROWER AND AUTHORIZING AND RATIFYING ACTIONS AND THE EXECUTION OF DOCUMENTS BY THE CORPORATIONS PRESENT.

OTHER OFFICERS, GENERAL MANAGER AND ASSISTANT GENERAL MANAGER IN CONNECTION WITH THE ABOVE DESCRIBED TRANSACTIONS.

THANK YOU BRIAN.

UM, FOR THE BOARD, THIS IS THE APPROVAL OF THE FINAL DOCUMENTS FOR THIS PURCHASE.

IT'S BEEN A LONG TIME COMING.

UH, WE'VE APPROVED IT SOMETIME LAST YEAR, UM, AND WE'VE GOTTEN IT FINANCED AND NOW WE ARE THE FINAL DOCUMENTS THAT WE'RE LOOKING AT.

UM, I WOULD OPEN IT UP FOR QUESTIONS FROM THE BOARD MEMBERS FOR ANY OF THESE DOCUMENTS.

HOPEFULLY YOU'RE ABLE TO REVIEW THOSE IN THE BOARD PACKET.

UM, BUT WE HAVE SEAN ROSSON ONLINE, UH, TO ANSWER ANY QUESTIONS.

UH, WE ALSO HAVE OUR COUNSEL HERE, UM, FOR ANY, ANY SPECIFIC DETAILS THAT YOU GUYS MIGHT WANNA HAVE MORE CLARIFICATION ON.

OKAY.

I GUESS WE CAN, UM, OPEN UP WITH A MOTION IF THERE'S ONE ON THE FLOOR AND THEN WE CAN, UH, PROCEED INTO QUESTIONS.

UH, SO WE MOTION ON FLOOR DIRECT A SECOND.

SECOND.

SECOND.

OKAY.

UH, ANY QUESTIONS FROM THE BOARD MEMBERS? HAVE THERE BEEN ANY MEANINGFUL CHANGES TO APPEAL STRIKE SINCE WE APPROVED? SO, AND THIS, THIS IS REALLY JUST A FINAL.

YEAH, WE HAVE A, A CLOSING DATE.

THIS WILL BE CLOSING ON THE EIGHTH AUGUST, I BELIEVE.

ANY QUESTIONS FROM ANYONE HERE? ANYONE ONLINE? SEE NONE.

WE'VE GOT A MOTION AND A SECOND.

UM, SHALL WE MOVE INTO A VOTE? UM, WE'LL DO A ROLL CALL.

VOTE.

UH, DIRECTOR ALLEN APPROVE.

OKAY.

DIRECTOR MARSHALL C UH, VOTE TO APPROVE.

OKAY.

UH, JUDGE RO, UH, DID DIRECTOR COLLINS EVER? COME ON.

LET'S SEE HERE ON.

OKAY.

UH, DIRECTOR HINTON APPROVE.

UH, I VOTE TO APPROVE.

UM, PRESIDENT APPROVE, DIRECTOR ROBINSON APPROVE.

DIRECTOR MOORE APPROVE.

SECRETARY PAGE APPROVE AND DIRECTOR XAVIER APPROVE.

PERFECT PASSES.

AND WE ARE NOW ON GR LAST ITEM RESOLUTION FOR 5 5 5 ROSS AND MULTI-FAMILY RESIDENTIAL DEVELOPMENT.

LOCATED AT 1777 NORTH RECORDS STREET IN THE CITY OF DALLAS, DALLAS COUNTY, TEXAS.

CONSIDER AN ADOPT RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH OPPORTUNITY HOUSING GROUP FOR ACQUISITION OF 5 5 5 ROSS, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT, LOCATED AT 1777 NORTH RECORD STREET IN THE CITY OF DALLAS, DALLAS COUNTY, TEXAS.

IN THE CREATION WITH THE SECRETARY OF STATE OF A LIMITED LIABILITY COMPANY TO OWN THE DEVELOPMENT WITH THE CORPORATION AS THE SOLE MEMBER TO BE NAMED DHFC 5 55 ROSS APARTMENT LLC AND APPROVING THE FOREMAN SUBSTANCE OF A LIMITED LIABILITY AGREEMENT.

THANK YOU.

VICE PRESIDENT GARCIA.

SO WE HAVE MR. BRAD DRIGGS HERE.

IF YOU COULD COME UP, HAVE A PRESENTATION THAT I WOULD LIKE, UH, TO GIVE TO THE BOARD HERE.

YEAH, I GOT THIS RIGHT HERE.

CAN YOU GUYS HEAR ME OKAY? YES, SIR.

SUPER.

UH, MY NAME IS BRAD RIGGS.

I'M PARTNER OF OPPORTUNITY HOUSING GROUP.

UH, WE ARE VERY EXCITED

[00:10:01]

TO BE HERE TODAY.

UH, WE PRESENT TO YOU 5 5 5 ROSS APARTMENTS IN, UH, THE DOWNTOWN AREA OF DALLAS, TEXAS.

UH, WE ARE LOOKING TO ACQUIRE THIS, UH, TO HAVE AN E-S-D-H-F-C ACQUIRE THIS UNDER THE, UH, UH, PACKET EXAM ESSENTIAL FUNCTION BOND PROGRAM, SIMILAR TO WHAT WE DID, UH, IN 2022, LATE 2022, UH, WITH A PROPERTY CALLED THE BRITON.

UM, BEFORE WE, UH, UH, GET STARTED, I, AUGUST 20 TEAM TODAY, UM, I WANTED TO, UH, THANK, UH, AARON AND JACKIE ESPECIALLY FOR THE WORK THEY DID.

AND I KNOW AARON WAS ON VACATION LAST WEEK, BUT HE WAS WORKING ALSO TO HELP US GET TO THIS POINT.

UM, WHEN YOU HAVE THESE KINDS OF TRANSACTIONS, UNFORTUNATELY YOU'RE UNDER CONTRACT NOW.

WE'RE UNDER CONTRACT TO BUY THE ASSET AND ASSIGN OVER TO THE HFC.

SO WE HAVE TO MAKE THIS MEETING AND WE APPRECIATE EVERYTHING WE'VE DONE TO GET US HERE TODAY.

ALONG WITH THAT, I'D LIKE TO THANK, UM, UH, HILLTOP ADVISORS, UH, BRAXTON.

TIM, THEY DID A TERRIFIC JOB OF ALSO WORKING.

I KNOW BRAXTON WAS DOWN AT A CONFERENCE WITH DOUBLED DOUBLE WORKING, UH, HIS EFFORTS AS WELL.

AND AGAIN, WE APPRECIATE ALL THE GUIDANCE THEY GAVE.

STATE THIS.

UH, ALONG WITH THAT, I'D LIKE TO THANK, UH, RYAN BOWEN, CHAP AND GEORGE RODRIGUEZ, UH, GRACE WELL AND JUST TRUE PROFESSIONALS AND, UH, WE APPRECIATE THEIR INPUT AS WELL.

UM, ON OUR TEAM TODAY, WHO'S ON THE CALL, I'D LIKE TO INTRODUCE, SO, LAUREN SEAVER.

LAUREN IS THE PRESIDENT OF OPPORTUNITY HOUSING GROUP.

SHE'S ON THE CALL TODAY.

UH, YOU GUYS HAVE MET LAUREN FOR, UM, SHE'S JOINING US.

AND THEN IN THE ROOM WITH ME IS, UH, BRIAN MCNAMARA, WHO'S OUR VICE PRESIDENT OF INVESTMENT.

BRIAN WILL DO THE BODY OF THIS PRESENTATION, UM, BUT I WOULD LIKE TO JUST TAKE A FEW COMMENTS.

UM, THIS PROGRAM IS, IS VERY UNIQUE IN THE WAY THAT, UH, JUST TO REMIND YOU ABOUT THE PROGRAM.

UM, UH, WE TYPICALLY ASSEMBLE, UH, A VERY STRONG TEAM TO GO THROUGH THE PROCESS TO ACQUIRE THE ASSET.

UH, WE USE, UM, UH, GOOD BOND UNDERWRITERS AND, UH, PROPERTY MANAGERS.

AS YOU KNOW, WE SPENT A LOT OF TIME NEGOTIATING OR YOU DON'T KNOW, BUT WE SPENT A LOT OF TIME WORKING WITH, UH, SOME OF YOUR FOLKS ON THE BOARD TO NEGOTIATE A VERY STRONG CONTRACT IN YOUR FAVOR FOR GREYSTAR, WHICH ONE OF THE TOP, UM, UM, PROPERTY MANAGER COMPANIES IN, IN, IN THE WORLD, FRANKLY.

UM, AND THEN WE WORK, UH, WITH, UH, UH, THIS CASE WE'RE WORKING WITH MORGAN STANLEY AS THE LEAD BOND UNDERWRITER, BUT WE ALSO, UH, ARE GONNA BE JOINING WITH, UH, RECOMMENDATIONS FROM HILLTOP TO BRING IN JEFFERIES.

SO WE'LL HAVE A, A CO BOND UNDERWRITING, UH, PARTNERSHIP THERE.

UM, SO I THINK THAT'LL BE A VERY POSITIVE THING TO BE ABLE TO, UH, DO THAT.

AND JEFFREY BRINGS A LOT OF, UH, EXPERIENCE.

UH, I THINK YOU'RE GONNA HAVE TWO OF THE TOP, UH, BOND UNDERWRITERS WORKING ON THIS PROPERTY TO GET BONDS SOLD.

UM, AND WE'RE VERY EXCITED ABOUT HAVING THEM INVOLVED AS WELL.

UM, AND THEN OBVIOUSLY GEORGE, UM, UH, NORRIS, GEORGE AND OSTRO, UM, UH, BOY NORRIS HAS, UM, BEEN IN THIS BUSINESS A LONG TIME AND IS A PRO AND REALLY UNDERSTANDS THE INS AND OUTS OF THE BUSINESS, UH, AND WILL BE REPRESENTING UNDERWRITER STANCE.

UM, I'D LIKE TO START OVER TO RYAN MCNAMARA HERE TO, UM, LET HIM, UH, WALK YOU THROUGH THE, THE PROJECT AND, UM, THE OPPORTUNITY HERE.

SO LEMME TURN OVER TO RYAN.

GOT MARK.

THANK YOU, BRETT.

GOOD AFTERNOON EVERYBODY.

UH, THANKS FOR HAVING ME HERE.

RYAN MAGNER.

DR.

HOW'S THE GROUP? UM, THIS NEXT SLIDE, UH, JUST RUN THROUGH QUICKLY.

I THINK EVERYBODY HERE IS VERY WITH HOW THE PRICES AND STEPS THAT NEED TO BE TAKEN TO ENSURE THAT RENTAL OPPORTUNITIES FOR, UH, LOWER INCOME SI WOULD JUST NOTE THAT OVER THE PAST THREE YEARS, UH, DALLAS FOR WORTH MARKET HAS SEEN A 5.1% INCREASE OVERALL.

I KNOW THERE'S BEEN SOME LOWER RATES IN THE PAST YEAR, BUT STILL IT'S CONTINUED TO RISE TO THE OVERALL EFFECT LEVEL.

UH, I WOULD ALSO NOTE THAT CURRENTLY MORE THAN HALF OF DALLAS CALL 30% IN DALLAS AT THE DALLAS.

IF SOMEONE'S ONLINE, COULD YOU GUYS MEET YOURSELVES? SO LET'S TALK ABOUT THE PROPERTY.

IT'S 5 5 5 ROSS.

UM, IT'S LOCATED AT 1777 NORTH RECORD STREET, NOT TOO FAR FROM THIS LOCATION HERE IN THE WEST END HISTORIC DISTRICT.

IT WAS COMPLETED IN 2016, DEVELOPED BY FAIRFIELD FIELD, AND IT IS 17 STUDIOS, A HUNDRED SIXTY ONE ONE BEDROOMS, 89 2 BEDROOMS, AND IT'S PERFORMED VERY WELL ON A CALL.

I'M JUST LISTENING IN.

93, 90 5% OCCUPANCY.

[00:15:05]

HEY, THERE'S SOMEONE ON, ON THE PHONE IF YOU GUYS COULD MUTE YOURSELVES ONLINE OR IF YOU'RE ON, IF YOU'RE ATTENDING BY PHONE, IF YOU CAN MUTE.

THANK YOU.

UH, BEING IT WAS BUILT IN 2016, IT HAS THE FULL ARRAY OF AMEN PACKAGES THAT COME WITH A CLASS A ASSET, UH, MOST NOTABLY OF THE ROOF DECK POOL THAT YOU CAN LOOK OUT FOR THE SKY, WHICH IS PRETTY AMAZING.

UM, HAS FULL FITNESS CENTER, FULL COWORKING SPACES, UM, NUMEROUS, UH, FOUR YARDS WITH BARBECUE OPPORTUNITIES.

UH, UNITS ITSELF ARE IN GREAT SHAPE.

UH, THEY'RE TEMPLATED FLOOR TO CEILING, UM, WITH FLOORS, UH, THEY'VE BEEN WELL MAINTAINED OVER OVERTIME.

UH, THIS GIVES YOU AN OVERVIEW OF THE NEIGHBORHOOD.

UM, THE NEIGHBORHOOD ITSELF IS VERY WALKABLE TO CENTRAL BUSINESS DISTRICT.

UH, IT HAS EXCELLENT TRANSIT SCORE OF 88 'CAUSE IT'S JUST FIVE MINUTE WALK TO, UH, THE DARTMOUTH TRAIN STATION, UM, AND VERY BIKEABLE AS WELL.

AND THE CURRENT RESIDENT PROFILE, THERE'S 387 NEW RESIDENTS, CURRENTLY, 71% OF 'EM RANGE IN RANGE OF 22 TO 37, UH, WHICH I THINK IS A GREAT PROFILE FOR A PROGRAM LIKE THIS IN CERTAINLY LOW INCOME.

UH, WORKFORCE DEMOGRAPHIC.

UH, THE AVERAGE INCOME IS 117,000.

THE MEDIAN INCOME IS 92,000 OF THE CURRENT RESIDENCE.

ABOUT ALMOST 30% OF THEM WOULD QUALIFY FOR THE LESS THAN 80% A MI AND 38% BETWEEN THE 80 AND ONE 40.

BUT ALSO NOTE THAT, UM, AS WE GO DOWN THE GROUND, ROLL OVER THIS ASSET IS, UM, GOOD REPRESENTATION OF, UM, PUBLIC SERVANTS, UH, POLICE OFFICERS, HEALTHCARE WORKERS, EDUCATION WORKERS.

SO THE PERFECT DEMOGRAPHIC THEY WERE TRYING TO TARGET HERE.

LET'S TALK A LITTLE BIT ABOUT THE LONG-TERM GROWTH IN THE AREA.

UM, YOU KNOW, THERE'S CERTAINLY A LOT OF POTENTIAL LIBERAL EVENTS, 10 TO 28 HORIZON FOR REDEVELOPMENT IN THE AREA.

THIS IS SLIDE.

HERE'S PRIMARY PROJECTS AND YOU CAN FIND THEM.

IT'S ALMOST 8 MILLION SQUARE FEET OF NEW MIXED USE PLAN DEVELOPMENT .

NOW LET'S LOOK GOOD ONE STATES, UH, UH, THIS SLIDE TO NOTICE THE RENT SAVINGS BETWEEN, UM, 60% A MI AND 80% A MI HAS A VERY CURRENT MARKET RENT.

CURRENT MARKET RENT, THERE IS JUST A LITTLE OVER $2,000 A MONTH ON AVERAGE.

THE AVERAGE FOR THE 60% A MI LEVEL WOULD BE JUST A LITTLE OVER $1,300 A MONTH PERCENT, 30% SAVINGS IN THAT CATEGORY.

AND THEN LOOKING AT THE 80% CATEGORY, YOU'RE TALKING ABOUT 17, ALMOST $1,800 A MONTH IN AVERAGE RENT, WHICH IS A 14.7% SAVINGS OVER, UH, THIS SLIDE JUST NOTES A FEW OTHER THINGS THAT WE'VE ALREADY TALKED ABOUT HERE.

BUT, UM, JUST TO CONFIRM, THE PROGRAM WOULD INCLUDE 10% OF THE UNITS AT 60% A MI, 40% AT 80% A MI, 40% AT 140% A MI, AND 10% .

THIS SLIDE LOOKS AT THE PUBLIC BENEFITS, UM, OVER THE LIFE OF THE BOND PROGRAM.

SO THE KEY, YOU KNOW, TO THIS PROGRAM IS THAT THE DHSC WILL OWN THE ASSET WITHOUT RECOURSE, UH, THROUGH THE END OF THE TERM.

AND THEN ONCE THOSE BONDS ARE PAID OFF OR THE DHC SELL IT AFTER YEAR 15, THEY REAP THE BENEFIT OF THOSE DISTRIBUTED PROCEEDS.

IF YOU LOOK AT YEAR 15, UH, REPAY THAT REPAYMENT VALUE IS ABOUT 44.6 MILLION.

UM, TOTAL PUBLIC BENEFITS OVER THAT TIME PERIOD ARE 72.3 MILLION 229% INCREASE OVER THE CURRENT TAX DURING THAT TIME.

AND IF YOU LOOK AT IT, SALEING OF 38, THAT PUBLIC BENEFIT INCREASES TO 470 MILLION, JUST 401% INCREASE OVER OUR TAX ROLL.

SO THIS SLIDE SUMMARIZES THE OPPORTUNITY.

UM, IT'S A POTENTIAL TO PUT 134 UM, UNITS INTO LOW INCOME DALLAS FAMILIES IMMEDIATELY.

UM, INITIAL RENT SAVINGS RANGE BETWEEN 3,500 TO $6,200 PER UNIT PER YEAR.

[00:20:01]

ENTIRELY NON RECOURSE AT DHSE.

UM, EXPERIENCED WORKFORCE HOUSING TEAM, UM, HAS WORKED ON PROJECT WAS DHSE BEFORE.

UH, DISPOSITION VALUE ESTIMATED APPROXIMATELY 44 MILLION.

SOLD IN NEAR 15, UP TO 288 MILLION, SOLD IN NEAR 38.

UM, AND WE'VE BUDGETED ENOUGH RESERVES SO THAT THIS PROPERTY COULD BE MAINTAINED AS A BEST IN CLASS CLASS A PROPERTY .

THEN I'LL JUST QUICKLY RUN THROUGH, UH, JUST A LITTLE BIT MORE DETAIL IN THE NEIGHBORHOOD.

WE THINK THAT'S A PRETTY VERY COMPELLING REASON FOR THIS ASSET IN TERMS OF WALKABILITY.

UM, MULTIPLE SCORES, 87 TRAINING SCORES, 88 BI SCORE SEVEN SIX.

THIS GIVES YOU AN IDEA OF NEARBY PUBLIC SCHOOL CITY YOU SEC WITHIN TWO MILES.

THIS GIVES YOU AN IDEA OF NEARBY GROCERY STORES WITHIN ONE MILE SERVICE, THE RESIDENTS DAILY MEAT SERVICES.

THIS GIVES YOU AN IDEA OF RESTAURANTS NEARBY WITHIN ONE MILE, UM, 10 ON THIS MAP HERE.

UM, SO GOOD OPPORTUNITY FOR SOMEONE TO LIVE AND WORK IN.

SAY FAVOR.

UH, THIS JUST GIVES YOU AN IDEA OF OTHER ENTERTAINMENT THEATERS ALSO WITHIN .

UH, ALSO NOTE THAT THE WEST END NEIGHBORHOOD IS FROM NINTH SAFEST NEIGHBORHOOD IN DALLAS.

UM, SO WE THINK THAT'S A GOOD COMPELLING REASON TO, UM, ALSO PURCHASE THE ASSET AND GOOD FAMILIES.

LASTLY, I'LL TOUCH ON THE TAX INCREMENT FINDING COMPONENT TO THIS PROPERTY.

WHEN FAIRFIELD DEVELOPED IN 2016 AND PUT IT INTO TAX EXEMPT FINANCE DISTRICT WHERE THEY RECEIVED FUNDS, UM, THAT WERE REPAID BACK THROUGH THE TAX INCREMENTAL PROPERTY THAT IS SCHEDULED TO EXPIRE IN 2037, FAIRFIELD DID ALREADY RESTRICT 27 UNITS TO THE 80% A MI IN EXCHANGE FOR THAT FINANCING.

THOSE UNITS ARE SCHEDULED TO ROLL OFF IN 2032.

SO THIS WOULD KEEP, UH, UNITS AT THAT A MI LEVEL THROUGH THE LIFE OF THE BOND PROGRAM BEYOND 23.

AND WE RESERVED FOR THOSE TAX PAYMENTS TO BE PAID THROUGH 2037.

SO THE TIP BE MAP, IT GIVES YOU AN OVERVIEW OF OUR SCHEDULE.

UM, ASSUMING WE RECEIVE APPROVAL HERE TODAY, WE'D BE BACK IN FRONT OF THE DHFC FOR FINAL APPROVAL ON SEPTEMBER 10TH.

BONDS WOULD BE SOLD, UM, IN SEPTEMBER, BEGINNING OF OCTOBER WITH AN ESTIMATED CLOSING DATE OF OCTOBER 18TH.

WITH THAT, I'LL OPEN IT UP TO ANY QUESTIONS THAT THE BOARD HAS.

THANK YOU, RYAN.

UM, LET'S GET A MOTION ON THE FLOOR FIRST AND THEN WE CAN, UH, START ASKING QUESTIONS.

DO YOU CARE TO MAKE A MOTION? SO MOVED.

IT'S MARCY.

OKAY, THANK YOU.

MARCY, DO WE HAVE A SECOND? SECOND.

PERFECT.

OKAY.

UM, DO YOU HAVE ANY QUESTIONS? LET'S LET HIM GO.

GO AHEAD.

YOU GO FIRST.

UM, I WAS JUST WONDERING, FOR THE 10% OF UNITS THAT ARE FOR PEOPLE AT 60% AM MFI, HOW MANY OF THOSE ARE THE TWO BEDROOMS? THE IDEA WOULD BE ABLE TO SPREAD EACH OF THE CATEGORIES OVER THE UNITS , BUT THAT SEEMS TO BE YOUR SMALLEST UNIT.

I MEAN, ALLOCATION FOR PEOPLE AT THE LOWEST END OF A MFI.

SO DOES THAT EQUAL TWO BEDROOM? UM, WE DID THAT ALLOCATION, I THINK IT IS FOR TWO BEDROOMS. IT'S FOUR ROOMS. FOUR UNITS.

FOUR UNITS, YEAH.

OKAY.

DO YOU KNOW IF ANY OF THOSE ARE PART OF THE TIFF RESTRICTED UNITS? THEY'RE NOT EXISTING.

TIFF RESTRICTIONS ARE ON ALL THE STUDIOS AND THREE ONE BEDROOMS, OR I'M SORRY, 10 BED.

IT DOESN'T REALLY FEEL LIKE ENOUGH, BUT THAT'S MORE OF A GENERAL COMMENT THEN.

ARE YOU, DO YOU HAVE ANY PLANS TO INCREASE THE NUMBER OF TWO BEDROOM UNITS FOR THOSE AT THE LOWER INCOME RANGE? SO, GREAT QUESTION.

UH, THIS PROGRAM IS SET UP PRIMARILY FOR MIDDLE INCOME, YOU KNOW, ACCESSORY WORKERS.

MM-HMM.

.

SO WE, UH, HAVE BEEN FOCUSED ON THAT.

IF YOU REMEMBER, THE BRISCO WAS DONE WITHOUT ANY LITTLE LOWER, UH, UNITS.

UM, TALKING TO AARON AND, AND, AND OTHERS, UM, WE ADDED THIS IN, UM, BECAUSE I KNOW THAT'S KIND OF A HOT SPOTS.

THEY'RE JUST LOOKING FOR IN BASE TO PROVIDE THAT.

WE, WE NEED TO ALSO BE ABLE TO UNDERWRITE THE DEAL TO MAKE SURE THAT THE CASH FLOW SERVES THE BONDS.

SO THERE'S A, THERE'S A, THERE'S KIND A TENSION THERE, BUT I WOULD SAY THAT SINCE DH C'S GONNA OWN THE ASSET OVER A 33, 3 5 YEAR PERIOD OF RIGHT FROM THE BONDS, YOU'RE GONNA SEE SOME PIECES OF DISPARITY

[00:25:01]

BETWEEN WHERE THE RENT GONNA BE RESTRICTED, MARKET RENT ARE GONNA GO UP.

THERE'S GONNA BE A GAP.

AND AS YOU, AS THE OWNER OF THE PROPERTY WANT TO MAKE ADJUSTMENTS LATER, YOU WANT TO PROVIDE MORE AFFORDABILITY.

IF YOU THINK IT CAN SERVICE THE BONDS, SERVICE THE DEBT, YOU COULD CERTAINLY COME BACK AND AS YOU, AS THE OWNER OF THE PROPERTY, YOU CAN REVIEW IT AND SAY, WE WANT TO DO THIS OR DO THIS TO THE PROPERTY AND NEVER BEEN ADJUSTED.

SO THERE'S MORE FLEXIBILITY DOWN THE ROAD, BUT FOR THE BOND, UM, INVESTORS.

SO THEY NEED TO MAKE SURE THEY'RE GONNA BE ABLE TO SERVICE THOSE BONDS AND MAKE SURE THAT THE DEBT SERVICE SAYS THEY WANTS TO COME.

THAT ANSWERS YOUR QUESTION.

THAT'S NO, THAT I WOULD JUMP IN THOUGH.

ALTHOUGH WE WOULD CONTROL THE PROPERTY, WE WOULD STILL HAVE TO MAKE SURE THAT UNDERWRITES, SO IT WOULDN'T JUST BE LIKE, WE'LL SET 60% HOWEVER WE WANT.

LIKE, WE STILL HAVE TO PAY THE DEBT SERVICE.

SO IF WE COULDN'T, THEN WE COULDN'T, WE HAVE SO DISCRETION TO MAKE THAT DECISION.

OR WOULD WE HAVE TO GO TO THIS? I MEAN, ON THESE BONDS TRANSACTIONS, WE ARE THE OWNER, SO WE CAN DIRECT OUR PROPERTY ADMINISTRATOR TO DO.

UM, ARE YOU LOCKED INTO USING GRAYSTAR AS PROPERTY MANAGER? UM, I WOULD, I WOULD SAY NOT LOCKED IN.

IT'S YOUR DECISION, BUT AS THE ADMINISTRATOR FOR YOU, I WOULD, I WOULD, I WOULD RECOMMEND IT.

AND THE REASON WHY IS THEY'RE CURRENTLY MANAGING, GOSH, PROBABLY THE TOTAL PROGRAM.

I'M FAMILIAR WITH OVER 40, 45 ASSETS.

THEY UNDERSTAND THE PROGRAM, THEY MANAGE ALL THE ASSETS THAT WE OVERSEE AS WELL.

AND I HAVE TO HAVE TO SAY THAT WE HAD TO BRING THEM UP ON THE EDGE ON THE LEARNING CURVE TO BE ABLE TO HELP THEM UNDERSTAND HOW TO KIND OF DEAL WITH THIS PROGRAM, HOW TO BE SIT, YOU KNOW, HOW TO APPROACH IT.

SO WE, WE FIND THAT THEY DO A VERY GOOD JOB IN TERMS OF WORKING WITH WITH IT.

WE, WE'VE ACTUALLY YES, AT TIMES JUST KNOW WE LOOK OUT FOR PURPOSE.

JUST WE HAD THE HIGHER UP CHANGES.

WE DON'T HAVE THE RIGHT PROPER MANAGE PERSON ON ON THERE.

SEE, THERE'S A PROBLEM.

BUT I TO SAY OVERALL, WE'RE VERY SATISFIED WHAT THEY DO.

SECOND THING IS, IS THAT, AS I MENTIONED IN MY PRESENTATION, THERE WAS A, THERE'S A PROCLAMATION AGREEMENT THAT HAS BEEN PUT IN PLACE, UM, THAT WAS HEAVILY NEGOTIATED USING THEIR, THEIR, THEIR, UH, COUNCIL ON ALONG WITH YOUR, YOUR COUNCIL AND OURSELVES.

AND, UM, I HAVE TO SAY IT'S A VERY, VERY FAVORABLE AGREEMENT THAT WORKS IN BEHALF OF, OF U FFC US OWNER.

SO THAT WOULD HAVE TO BE RENEGOTIATED.

IT TOOK US NEARLY BRISTOL, TOOK US NEARLY 3, 2, 3 MONTHS TO NEGOTIATE THAT AGREEMENT.

AND UNFORTUNATELY, I DON'T KNOW IF WE HAVE THE TIME RIGHT NOW TO DO THAT, GIVEN THE FACT THAT WE HAVE TO GET, YOU KNOW, DOWN THE ROAD, CLOSE IT HERE IN OCTOBER, OCTOBER.

BUT NOTHING TO SAY THAT IF THEY'RE NOT PERFORMING, YOU CAN COME BACK TO US AND SAY, HEY, WE'RE NOT HAPPY WITH THIS AND WE'D LET YOU GUYS CONSIDER SOMEBODY HOUSE MORE THAN HAPPY THAT POINT.

UM, AND, AND BE CLEAR, I'M VERY SUPPORTIVE OF THIS PROJECT OVERALL, I THINK IT'S GOOD PROJECT.

MY CONCERN WITH GREYSTAR SPECIFICALLY RELATES TO THEIR PERFORMANCE ON ANOTHER ASSET THAT WE HAVE AND, AND WHAT HAS BEEN MY PERCEPTION OF A UNWILLINGNESS TO TAKE DIRECTION FROM US AND TO, UM, FULLY APPRECIATE OUR, OUR MISSION.

I UNDERSTAND THEY'RE THE, I GUESS NOW THE LARGEST PROPERTY MULTIFAMILY PROPERTY MANAGER IN THE COUNTRY, WHICH IS, YOU KNOW, GOOD ON ONE.

BUT I, I HAVE THE SENSE TOO THAT MAYBE THEY'VE GOTTEN TOO BIG AND THAT THEY'RE REALLY NOT AS, UM, HUNGRY OR AS, YOU KNOW, CUSTOMER, UH, CENTRIC AS AS THEY USED TO BE.

I DON'T, AARON, I MEAN, YOU MIGHT HAVE REAL SHARE SOME CAR, BUT I I I'M NOT THRILLED WITH WHAT I'VE HEARD ABOUT 'EM OVER THE LAST, YOU KNOW, FEW, FEW MONTHS WITH RESPECT TO HOW THEY'VE INTERACTED WITH US.

YEAH, I THINK THEY DO WHAT THEY KNOW VERY WELL, SO, BUT ANY KIND OF SPECIAL REQUESTS ARE NOT, THEY CAN, YOU KNOW, VERY, UH, IN STRIDE.

UH, IT TAKES A LOT OF, THEY HAVE A LOT OF RED TAPE ON THEIR END BECAUSE THEY'RE SO BIG.

I THINK.

UH, SO LIKE I SAID, THERE'S A PRO AND CON, RIGHT? LIKE THEY'RE FAMILIAR WITH THIS PROGRAM, LIKE BRAD SAYS, BUT ALSO IF THE BOARD HAS SOME SPECIFIC NEEDS THAT THEY WANT, THEY, THEY'RE GONNA HAVE TO GO AND DELIBERATE ON HOW THEY'RE GONNA IMPLEMENT THOSE THINGS.

I WILL ADD TO THIS, JUST JUST SO YOU'RE AWARE OF THIS BECAUSE, UM, UH, MIKE IS GREAT STAR WHO RUNS ALL OF THEIR THIRD PARTY PROPERTY MANAGEMENT.

MM-HMM.

, GOOD FRIEND OF MINE, AND I HAVE I ON OVER THE LAST NUMBER OF YEARS AND MANAGED HIS ASSETS WHERE WE HAVE, I'VE CALLED MIKE AND I OCCASION SAID, LOOK, THIS IS A PROBLEM.

NEED TO ADDRESS IT.

LET'S GET, SO

[00:30:01]

MY COMMUTE TURN IT AROUND TAKES CARE OF BEFORE.

SO I MEAN, I, I THINK WE HAVE A VERY CONDUIT IN OUR, OUR RELATIONSHIP WITH GRAYSTAR MM-HMM.

TO WATCH OUT YOUR BEST INTEREST IN THIS.

IF SOMETHING IS A PROBLEM, LET US KNOW ABOUT IT AND WE'LL MAKE SURE THAT WE ARE ON TOP OF THIS WITH YOU TRYING TO SOLVE IT.

OKAY.

YEAH.

I DON'T WANNA WASTE A LOT OF TIME DURING THIS, YOU KNOW, UH, MEETING, BUT MAYBE WE CAN TALK OFFLINE.

I'VE GOT SOME SPECIFIC, VERY SPECIFIC CONCERNS.

PLEASE OBJECT TO THEM.

GREAT.

JUST A QUESTION.

AS A PERCENTAGE OF YOUR TOTAL PORTFOLIO, WHAT, HOW MANY PROPERTIES ARE THEY MANAGING FOR YOU? ALL OF THEM.

I, I THINK THEY'RE, UM, THEY JUST TOOK OVER ANOTHER PROPERTY FOR US, SO THEY'RE MANAGING ALL OF OUR PROPERTY.

LAST QUESTION.

AND I I JUST WANNA SAY, UM, I GET IT.

I, I UNDERSTAND WHERE TONY'S COMING FROM FOR SURE.

UM, AND, AND HOW DIFFICULT IT IS TO, TO DEAL WITH SUCH A LARGE ENTITY.

BUT, UH, THE OTHER THING I THINK THAT WE HAVE TO REMEMBER IS THAT THEY DO HAVE THESE PURCHASING PROGRAMS IN PLACE BECAUSE THEY'RE SO LARGE.

YOU KNOW, THE, I THINK AS BRAD WAS SAYING, THERE'S DEFINITE PROS AND CONS OF DEALING WITH A KIND OF A BEHEMOTH .

BUT ONE OF THE PROS IS THAT, UH, I THINK EVERYONE'S AWARE, CERTAINLY ANYONE WHO OWNS PROPERTY RIGHT NOW IS AWARE THAT INSURANCE RATES HAVE GONE JUST CRAZY AND BECOME HORRIBLY UNAFFORDABLE.

UM, AND SO THEY HAVE THESE, YOU KNOW, THIS LARGE PURCHASING POWER WHERE THEY CAN PROBABLY GET SOME OF THE BEST INSURANCE RATES.

SO, YOU KNOW, THINGS LIKE THAT, UM, ARE PART OF THE PROS.

I JUST WANTED EVERYONE TO KIND OF KEEP IN MIND.

UM, SORRY.

NO, THAT'S OKAY.

UH, LET'S SEE.

MY LAST QUESTION WAS, UH, I LOST MY TRAIN OF THOUGHT, SORRY, WAS YES.

WHEN'S THE LAST TIME YOU BID OUT THOSE SERVICES TO GAUGE WHAT OTHER VENDORS ARE CHARGING IN? SURE.

WE'RE COST TO MARCH'S POINT.

WE, WE, WE, WE, WE GO THROUGH MAJOR INSURANCE COMPANY OR BROKERS, YOU KNOW, TO REPRESENT YOUR BEST INTEREST.

AND, UM, WE DO ANNUAL BUDGETS.

INSURANCE COMES UP NORMALLY IN THE SPRING.

WE'RE CONSTANTLY DOING REVISION BUDGETS, MAKING SURE THAT WE'RE OUT THERE COMPETING AGAINST, YOU KNOW, OTHER, OTHER COMPANIES WHEN GET THE RIGHT PRICING.

WE HAVE NOT FOUND ANYBODY CHEAPER THAN VERY STAR RIGHT NOW, THEIR MASTER PROGRAM.

SO THEY DO HAVE A VERY, THEY DO HAVE A VERY POSITIVE AND BENEFICIAL PROGRAM FOR YOU AS THE OWNER COST.

NOW, UH, ANY QUESTIONS FROM ANYONE HERE OR, YEAH, I HAD A QUESTION ABOUT YOUR, UH, PUBLIC BENEFIT TO, UH, PROPERTY TAX SUBSIDY.

UM, THIS MODEL, YOU'VE CONTEMPLATED AN EXIT PRICE AT 15 YEARS AT $51 MILLION, AND THEN IN 35 YEARS THAT EXIT PRICE JUMPS UP TO $319 MILLION, WHICH IS ABOUT A SIX HALF X JUMP IN 20 YEARS.

IT'S THE NET PROCEED.

YEAH.

IS THAT NET OF THE BOND REPAYMENT? UM, YEAH, GOOD QUESTION.

SO THAT, THAT IS ESSENTIALLY PAID ON THE DEBT.

SO IF WE'RE TAKING ON 87 MILLION IN DEBT, THEN THE EXIT PRICE IN 15 YEARS WOULD BE 130 HUNDRED $40 MILLION BASICALLY.

SO, BUT THEN STILL, EVEN IF WE PAY DOWN THAT DEBT IN ITS ENTIRETY STILL SEEMS LIKE A PRETTY LARGE JUMP.

IT'S THE WAY THE NUMBERS WORK, YOU'RE ONLY ASSUMING WHAT, THREE, 4% RENT INCREASE? I MEAN, STILL MORE THAN TWO.

I I GUESS IF YOU HAVE A COMPLETE PAY DOWN OF THE DEBT, I JUST WANNA MAKE SURE THAT THOSE NUMBERS ARE ENTIRELY ACCURATE.

YEAH, WELL THEY ARE, AND THIS IS AN ECONOMIC SHOW AND, AND YOU'LL HAVE YOUR ADVISOR OBVIOUSLY REVIEW THAT IMPROVEMENT AS WELL.

SURE.

THAT THAT'S, UM, THAT'S THE WAY THAT THE NUMBER HAS ALWAYS WORKED DOWN.

YEAH, I MEAN, JUST TALKING ABOUT AN EXIT PRICE, EVEN IF IT'S ZERO DEBT REPAYMENT IN 35 YEARS, IT'S $1.2 MILLION A UNIT.

BRAXTON, ARE YOU ON MINE? MAYBE I MADE THAT HAPPENS.

YOU SEE, BUT YOU'RE ALSO, UH, I'M HERE.

YEAH, YOU DO.

YOU GUYS HAVE, DID YOU DO ANY SPECIFIC ANALYSIS ON THE EXIT PRICE DIRECTORS AS SOME, SO, I MEAN, THE WAY WE KIND LOOK AT THE EXIT PRICE IS WE, WE WOULD TAKE THE, THE NOI THAT'S GENERATED FOR A GIVEN YEAR AND THEN ADD THE TAXES BACK IN TO, TO ASSUME THAT THE HSE IS LEAVING THE, UH, THE PAR THE, UM, SELLING, SELLING THE ASSET.

AND THEY'LL GO BACK ON THE TAX ROLL, THEY'LL LOWER THE NOI, AND THEN WE THEN TAKE THAT NUMBER AND DIVIDE THAT BY A A, AN ASSUMED CAP RATE AND TYPICALLY USING, YOU KNOW, FIVE POINT HALF PERCENT TO BE KIND OF, UH, CONSERVATIVE.

IT'S FIVE CAPS.

I, I DON'T, I HAVEN'T SEEN THE LATEST PROFORMA THAT THEY'VE, THEY'VE

[00:35:01]

RUN, UH, WITH, WITH THE KIND OF RE RESTRUCTURING OF, OF USING CAB DEBT.

SO, UH, I, I'M KIND OF USING THE, A PREVIOUS PROFORMA, BUT, UM, AT, AT YEAR, I THINK THAT WE WERE TALKING ABOUT YEAR 15 HERE, UH, I AM LOOKING AT A VALUE OF, UH, JUST OVER SEVEN, JUST UNDER $71 MILLION.

THAT'S FOR MINE.

I MEAN, I'M NOT SHOWING ANY, I I'M SHOWING JUST, YOU KNOW, JUST OVER $300,000 OF, OF DEBT IS REPAID AT YEAR 15.

BUT AGAIN, THAT IS WITH A DIFFERENT PROFORMA WITH NOT SHOWING THE, THE, THE CAB DEBT THAT HAS A LOWER DEBT SERVICE REQUIREMENT.

SO I ASSUME THERE WILL BE MORE PRINCIPLE PAID OFF, BUT I, I CAN'T SPEAK TO THAT SINCE I HAVEN'T SEEN THE PERFORMA.

SO I GUESS WOULD BE TD ON.

YEAH, LET'S JUST CHECK ON THAT ONE.

I, MAYBE IT'S RIGHT, YOU KNOW, BUT JUST BACK THE ENVELOPES A LITTLE BIT OF A CHALLENGE FOR ME, AND I HAVEN'T LOOKED AT THE MODEL IN DETAIL.

I ONLY HAVE THE PF SO I'M ALSO HAPPY TO LOOK AT THAT.

NOT THAT THAT'S MAKE OR BREAK.

IT DOES SEEM LIKE THERE'S A PRETTY GOOD RATIO BETWEEN THE BENEFIT VERSUS THE TAX SUBSIDY REGARDLESS.

UM, BRAXTON, I, WITH RESPECT TO THE EXIT ANALYSIS, AND I, I DON'T EXPECT YOU TO HAVE THE ANSWER RIGHT NOW, BUT I'D LIKE TO SEE IF ON THE TERMINAL VALUE, IF YOU COULD LOOK AT THAT ON A, PER HOW MUCH THAT WORKS OUT TO A PER SQUARE FOOT TO THE LAND BASIS, AND THEN DISCOUNT THAT BACK TO PRESENT VALUE, SAY, YOU KNOW, 4%, YOU KNOW, PICK A, PICK A NUMBER.

UM, I'D BE INTERESTED IN KNOWING WHAT, WHAT THAT LOOKS LIKE, BECAUSE I THINK THERE'S A GOOD CHANCE IN 15 YEARS THAT THIS IS GONNA BE A, A REDEVELOPMENT SITE POTENTIALLY GIVEN ALL THE DEVELOPMENT THAT'S TAKING PLACE AROUND THERE, SOME OF THE STUFF THAT THEY'VE TALKED ABOUT.

UNDERSTOOD.

YEAH, I CAN, I CAN LOOK INTO THAT.

YEAH, THAT'S SOMETHING I, I DON'T HAVE, YOU KNOW, AT, AT MY FINGERTIPS AT THE MOMENT, BUT I, I CAN RUN THAT AND GET BACK WITH YOU.

NOT THAT BIG THOUGH.

AND BRAXTON, A A QUICK QUESTION ABOUT THOSE KIND OF TERMINAL VALUES AT 15 AND 35, I ASSUME THOSE ARE NOMINAL DOLLARS AT THAT TIME, THEY'RE NOT DISCOUNTED BACK, CORRECT? CORRECT.

YEP.

GOT IT.

AARON, JUST FOR CLARIFICATION, BY VOTING TODAY, WE STILL HAVE ANOTHER BITE AT THE APPLE.

IF WHATEVER REASON WE'RE NOT SATISFIED, WE STILL HAVE TO GO TO CITY COUNCIL WITH THIS AND WE'LL STILL HAVE TO COME BACK FOR A FINAL IMPROVEMENT.

WELL, I GUESS I'LL BE IN AUGUST WHEN THEY GET BACK.

YEAH, TELL ME.

I MEAN, IT'S A TWO AND A HALF ACRE PARCEL, AND IT'S ALREADY VALUED ON THE TAX ROLLS AT $120 A FOOT.

SO, I MEAN, EVEN IF IT GOES TO A THOUSAND DOLLARS A FOOT, IT'S NOT, IT'S NOT A TEAR DOWN TODAY, $120 A FOOT, IT'S A $12 MILLION VALUE ON THE LAND.

SO IF YOU GET TO $120 MILLION, I MEAN, THEY'RE TELLING ME IN 20 YEARS THIS THING'S GONNA BE WORTH A COUPLE HUNDRED MILLION DOLLARS.

SO YEAH, THE RATIOS ARE, I MEAN, YOU HAVE TO BE AT THOUSANDS OF DOLLARS.

YEAH, OKAY.

MAYBE NO, NO, I DON'T SEE ALL.

I AGREE.

WELL, I, I, I, I CAN SHARE A STORY WITH YOU.

I MEAN, BEEN DOING BUSINESS SINCE 1982, AND I WAS FIRST STILL APARTMENTS.

I WAS BUILDING, UH, 36,000 A UNIT, AND TODAY I'M BUILDING FOR 600,000.

SO, I MEAN, IT'S JUST THE WAY THE, UNFORTUNATELY, IT'S JUST THE WAY THE ECONOMICS WORK AND THE WAY THE RENT DONE.

SO IT'S, IT, IT'S HARD TO BELIEVE THAT YOU MAY BE WORTH A MILLION DOLLARS A UNIT, SOME IN THE FUTURE, BUT IT WILL BE.

AND I, AND, UH, CERTAINLY WE CAN RELAY THESE NUMBERS AND GO THROUGH WITH YOU, BUT THAT'S JUST HOW ALL THESE DEALS UNDERWRITING.

UM, I JUST WANNA SAY THAT, UH, I DON'T KNOW IF DAVID ELLIS IS ON RIGHT NOW OR WHETHER ANYBODY ELSE, UH, ACTUALLY TOURED THE PROPERTY, BUT, UM, FIRST OF ALL, I THOUGHT THE PROPERTY LOOKED GREAT.

YOU KNOW, OF COURSE WE WERE ON A TOUR , I WASN'T IN EVERY UNIT, BUT, UH, BUT IN GENERAL, IT SEEMED, UH, AS IF IT HAD BEEN REALLY, UH, KEPT UP VERY NICELY.

UM, I THOUGHT IT WAS REALLY NICE THAT THE PROPERTY, THE ONSITE PROPERTY MANAGER WHO GAVE US THE TOUR HAS BEEN MANAGING THIS PROPERTY SINCE IT OPENED.

SO I THOUGHT THAT WAS PRETTY IMPRESSIVE.

UM, AND THEN, BUT, BUT MOSTLY THE REASON THAT THIS PROPERTY EXCITES ME IS BECAUSE I JUST THINK THERE WOULD BE SO LITTLE OPPORTUNITY FOR US TO BRING UNITS, AFFORDABLE UNITS DOWNTOWN IMMEDIATELY.

YOU KNOW, THERE MIGHT BE OTHER, AND I THINK AARON HAS MENTIONED THAT WE HAVE OTHER DEVELOPERS THAT MAY BE INTERESTED IN DOING SOME GROUND UP PROPERTIES, BUT AS WE ALL KNOW, THAT'S TAKING LONGER AND LONGER TO COMPLETE.

YOU KNOW, SO IF WE'RE LOOKING AT THREE, FOUR YEARS DOWN THE ROAD TO GET SOME NEW AFFORDABLE UNITS

[00:40:01]

DOWNTOWN, UM, WE DO HAVE SOME AFFORDABLE UNITS AT, UM, UM, AARON, REMIND ME THE NAME OF THE, UH, COMPLEX ON BRIAN.

ANYWAY, IN A BUILDING ON BRIAN STREET, WE DO HAVE SOME UNITS.

I DON'T THINK IT'S ALL THAT MANY.

UM, AND SO I REALLY THINK THAT, UM, IT WOULD BE SO WONDERFUL TO PROVIDE THIS OPPORTUNITY FOR, FOR OUR, YOU KNOW, CRITICAL WORKFORCE TO ACTUALLY BE LIVING DOWNTOWN, YOU KNOW, SHOPPING AND, UM, YOU KNOW, UH, LEADING THEIR LIVES IN DOWNTOWN DALLAS.

TO ME, THIS IS, THAT'S WHAT MAKES THIS OPPORTUNITY UNIQUE.

JUST GONNA, UM, YOU KNOW, TAG ONTO WHAT, UH, TE UH, HEALTH SAID IS THE, I MEAN, I, I THINK IN THIS AREA, THE CBD AND VICTORY AND, AND UPTOWN AT LAND COSTS PER SQUARE FOOT ARE, ARE SO HIGH THAT IT REALLY MAKES IT, YOU KNOW, PRACTICALLY IMPOSSIBLE FOR US TO, UH, ABLE FEASIBLY DO ANY GROUND UP, DEVELOP, UH, AFFORDABLE DEVELOPMENT.

SO, I, I, YOU KNOW, I AGREE WITH MARCY.

OH, THE THING I WAS TRYING TO REMEMBER WAS THE GABRA .

WE DO HAVE SOME UNITS IN THE GABRA, BUT YOU KNOW, OBVIOUSLY WE DON'T OWN THOSE UNITS AS WE WOULD HERE.

SO WE, WE HAVE A MOTION ON THE FLOOR.

UM, I'M WILLING TO, IF ANYONE WANTS TO CALL THE QUESTION OR IF ANYONE ONLINE STILL HAS MORE COMMENTS, ALL THE QUESTION, ALL THE REQUEST, WE HAVE A MOTION TO CALL THE QUESTION.

DO YOU HAVE A SECOND? SECOND, SECOND.

ALL IN FAVOR OF CALLING THE QUESTION, PLEASE SAY AYE.

AYE.

AYE.

ANYONE OPPOSED? AYE.

ANYONE OPPOSED? OKAY.

QUESTION HAS BEEN CALLED, WE'LL NOW MOVE INTO A ROLL CALL VOTE.

DIRECTOR ALLEN IN FAVOR, DIRECTOR MARSHALL SEAT.

WHO IN FAVOR? TREASURER FAROH IN FAVOR, DIRECTOR HINTON.

IN FAVOR? I'M IN FAVOR, PRESIDENT .

IN FAVOR, DIRECTOR ROBINSON.

IN FAVOR, DIRECTOR MOORE IN FAVOR.

SECRETARY PAGE IN FAVOR.

AND DIRECTOR XAVIER IN FAVOR.

EXCELLENT.

THAT PASSES.

THANK YOU.

THANK YOU VERY MUCH.

OKAY, UH, NEXT ITEM ON THE AGENDA IS REVIEW WITH DISCUSSION OF DHFC TREASURER'S REPORT FOR FIVE MONTH PERIOD, ENDING ON MAY 31ST, 2024.

THANK YOU.

VICE PRESIDENT GARCIA, IT IS SHANNON, ANDRE ONLINE.

HEY SHANNON, I DON'T KNOW IF WE WANNA TAKE FIVE MINUTES TO GO THROUGH THIS REAL QUICK.

SURE.

PROBABLY WON'T EVEN TAKE THAT UNLESS THERE'S QUESTIONS.

LET'S JUST GO AHEAD AND TAKE A LOOK FOR, WE ARE LOOKING AT THE FIVE MONTHS ENDED, MAY 31ST FOR THE CORPORATION.

UM, YOUR CASH AND CASH EQUIVALENTS AT THIS POINT AT MAY 31ST ARE AT $15.8 MILLION.

UM, YOU STARTED OFF THE YEAR AT 14.5, SO UP 1.3 MILLION IN THESE FIRST FIVE MONTHS OF THE YEAR.

UH, PRIMARY REASON FOR THE INCREASE YOU'LL REMEMBER IS YOUR CLOSING OF DOMAIN AT MIDTOWN AND CASH RECEIPTS OF 638,000 DURING THAT PARTICULAR, UH, CLOSING YOUR TOTAL INCOME FOR THE FIVE MONTHS ON ACCRUAL BASIS IS $2.3 MILLION.

AND, UH, YOU KNOW, THAT'S MUCH HIGHER THAN WHAT Y'ALL HAD BACK IN 2023 FOR THE SAME PERIOD OF TIME OF 1.1 MILLION AND HIGHER THAN YOUR BUDGET COULD REVENUES OF 1.7.

SO OFF TO A GREAT START HERE IN THESE FIRST FIVE MONTHS, EXPENSES CONTINUE TO STAY LOW.

AGAIN, WE HAVEN'T SEEN THE ACTUAL TRANSFER FOR PERSONNEL REIMBURSEMENTS IN THESE FIRST FIVE MONTHS.

SO, UM, SITTING HERE WITH A NET CHANGE IN FINANCIAL POSITION FOR THE FIVE MONTHS AT 2.2 MILLION $273,201.

SO A VERY NICE, UM, CHANGE IN FINANCIAL POSITION.

REALLY NOTHING UNUSUAL TO REPORT DURING THESE FIRST FIVE MONTHS.

ARE THERE ANY QUESTIONS? HAVE WE ACCOUNTED FOR THOSE PERSONNEL EXPENSES AS AN ACCRUED LIABILITY OR ARE WE JUST LEAVING IT OUT ETHER? NO, WE TYPICALLY HAVE NOT.

UM, BECAUSE IN THE PRIOR YEARS THERE WAS SOME QUESTION AS TO WHETHER IT WAS GOING TO ACTUALLY EVEN OCCUR AND IT, AND, AND, AND IN SOME YEARS IT DIDN'T OCCUR UNTIL LIKE THE, THE VERY END OR NOT AT ALL.

SO THERE'S BEEN QUESTIONS ON IT.

SO WE'VE BEEN MORE CONSERVATIVE IN THAT MANNER, BUT WE MOST CERTAINLY COULD ACCRUE THEM, UM, AS WE GO ALONG.

I CAN INTERJECT HERE IN JUNE.

I THINK WE ACCOUNTED FOR THOSE FIRST TWO QUARTERS.

YEAH, WE HAVE GOTTEN, I KNOW WE'VE NOW GOTTEN AN INVOICE.

PERFECT.

THEN THEY WILL SHOW UP NEXT TIME WE'RE HERE.

SEE THOSE? ERIN, DO YOU, ERIN, DO YOU WANNA LET THE GROUP KNOW WHAT THE INVOICE AMOUNT WAS THEN

[00:45:01]

THEY COULD TAKE THAT INTO ACCOUNT? 'CAUSE THAT'LL SHOW UP ON THE NEXT, HOPEFULLY ON THE NEXT REPORT.

DON'T HAVE THE INVOICE IN FRONT OF ME, BUT IF YOU GUYS, I, I CAN FIND IT AND EMAIL IT TO YOU AFTER THE, THE MEETING.

YEAH.

BUT IT'S IN LINE WITH WHAT WE'VE EXPERIENCED, RIGHT? YEAH.

IT'S, IT'S NOT ANYTHING IN EXCESS OF OUR YEAH, I JUST WANTED TO MAKE SURE THAT WE WEREN'T OVERLOOKING THAT NUMBER.

'CAUSE IT IS MEANING, SO YOUR CONCERN IS, ARE WE ACCRUING THE PROPER EXPENSE? IT LOOKS LIKE WE HAVE THE INVOICE AND IT'LL BE ON THE FINANCIALS, SO IT WILL BE, BUT IT WASN'T BEING APPROVED.

IT WASN'T PREVIOUS.

THAT'S WHY OUR FINANCIALS LOOK.

YEAH, SO PREVIOUSLY, PREVIOUSLY IT WAS VERY KIND OF NEBULOUS HOW, HOW THE STATE BILL BACK FOR THE STAFFING COSTS.

SO NOW WE, UH, THAT THE HOUSING DEPARTMENT TO BILL US EVERY QUARTER.

AND SO NOW THAT'S GONNA HAPPEN MORE REGULARLY JUST ON A QUARTERLY BASIS AND SO OF JUST SOME BIG NUMBER AT THE END OF THE YEAR.

SO, SO NOW THAT WE KNOW HAVE YOU HAVE A BETTER IDEA, WILL WE START GOING FOR THIS GOING FORWARD? SO, UM, IF, IF WE WANT SHANNON TO START DOING THAT, I'M SURE SHE, SHE CAN INCORPORATE THAT INTO THEIR ANALYSIS EVERY MONTH.

SHANNON, WHAT DID, DO YOU HAVE ENOUGH TO, TO START AT BREWING THROUGH THESE, UH, THIS EXPENSE? ONCE WE SEE THE INVOICE FROM THE CITY THAT CONFIRMS HOW MUCH IT IS PER QUARTER, THEN EVERY MONTH WE'LL JUST TAKE, YOU KNOW, WE CAN DO THAT AND BUILD UP A A A PAYABLE FOR ANYTHING THAT HASN'T BEEN TRANSFERRED TO DATE.

THAT WOULD BE MY STRONG, YOU KNOW, JUST ONE VOICE HERE.

THAT BE MY MOST CERTAINLY.

NO, THAT MAKES SENSE.

OKAY.

UM, I HAVE A QUESTION.

UM, WE, UM, AUTHORIZED THE TEXT TOOL.

HAVE WE STARTED INVESTING IN, WE ARE WAITING ON, I THINK WELL JACKIE'S OUT TODAY.

SHE'S BEEN HAVING THAT, BUT, UM, I THINK WE JUST NEED A SIGNATURE AND A ACCOUNTS.

BUT I WILL NOTE THAT WE DID OPEN A, A NEW CHECKING ACCOUNT WITH ORIGINS BANK.

UM, AND THEY HAVE A, I GUESS IT'S, IT'S A DUAL CHECKING PLUS SAVINGS.

AND SO WE HAVE THE MAJORITY OF OUR CASH IN THEIR SAVINGS AND THAT'S EARNING LIKE A 4.65% RETURN.

SO WE'RE GETTING A PRETTY GOOD AMOUNT UNTIL WE CAN GET THE REST OF THAT INVESTED INTO THAT TAX POOL.

UM, WE'RE, WE'RE MAKING SOME MONEY RIGHT NOW.

SO WE'VE, WE'VE MOVED AWAY FROM BB OF A TYPE.

AND ORIGINS ARE WITH, ARE THEY A TEXAS OR WHO'S THEY'RE A MORE REGIONAL BANK.

I MEAN NOT TEXAS BASED, BUT THEY HAVE OFFICES HERE.

THEY HAVE BASED IN LOUISIANA.

OKAY.

LOUISIANA.

OKAY.

UM, AND THEY BOTH HFC AND THE PFC HAS, HAS MOVED THEIR ACCOUNTS OVER THERE.

UM, THEY HAVE A REALLY GOOD TEAM, VERY SUPPORTIVE, VERY RESPONSIVE.

AND SO, AND THEY OFFER A REALLY GREAT MONEY MARKET RIGHT.

FOR THEIR, THEIR SAVINGS ACCOUNTS.

SO HERE WAS .

I THANKS SHANNON.

DIDN'T I SEE, UH, I THOUGHT THERE WAS A, A NUMBER IN THERE, A PRETTY NICE NUMBER FOR INTEREST INCOME THIS YEAR.

THERE'S 155,000.

SO YOU'VE HAD IT IN SAVINGS.

IT'S JUST LOWER THAN WHAT YOU CAN GET IN THESE MONEY MARKETS.

TAX BULL, OTHER THINGS WITHOUT A DOUBT.

OKAY, BECAUSE I'M LOOKING IN SAVINGS.

YEAH.

YEAH, THEY WERE, THEY WERE ALMOST SAVED TO MATCH THE TEXT BULL.

JUST THEIR MONEY WEREN'T SAVED, SO, AND WERE THEY, YOU WERE TALKING TO A COUPLE OTHER BANKS TO YOUR RIGHT? YEAH, I WAS TALKING TO TEXAS CAPITAL KUBOTA AND THEY JUST WEREN'T ABLE TO GIVE US THE SERVICE.

OKAY.

SO I MEAN, YOU FEEL BETTER ABOUT YEAH, ORIGINS HAS BEEN FAR AND AWAY THE BEST TEAM.

UH, SO CAN I HAVE A LOCAL OFFICE? ANY BALANCE? YEAH, HAVE LOCAL OFFICE.

UM, ANY QUESTIONS ON THIS ITEM? NO.

AND REAL QUICK BEFORE WE MOVE ON, UH, I DO WANT THE RECORD TO REFLECT THAT DIRECTOR COLLINS IS HERE NOW.

UH, NOW THAT WE'RE DONE WITH THAT, I'M SORRY, I HAD A CALL COME IN THAT I HAD TO TAKE.

OH NO, I JUST WANNA MAKE SURE WE GOT YOU DOWN AS PRESENT.

OKAY.

AND UM, LAST ITEM ON THE AGENDA IS REVIEW AND DISCUSSION OF, UH, CORPORATIONS PIPELINE REPORT AS OF JULY 8TH, 2024.

UM, NO SIGNIFICANT CHANGES.

I WILL NOTE THAT OUR CLOSINGS HERE, WE HAVE THE MONTELLO, WHICH PROVED LAST MONTH, I BELIEVE IS CLOSING ON THE 18TH.

UM, WE ALSO HAVE WEST VIRGINIA APARTMENTS.

WE'LL BE CLOSING ON THE 30TH.

AND THEN ACCESS KESSLER PARK.

THE ONE WE BOOKED TODAY WILL BE ON THE 8TH OF AUGUST.

SO SOME VERY QUICK HITTING CLOSINGS HERE IN THE NEXT 15 TO 30 DAYS.

UM, HOPEFULLY WE'LL HAVE A, A PRETTY GOOD REST OF THE YEAR.

MAYBE WE GET

[00:50:01]

A COUPLE MORE BOND DEALS CLOSED.

I KNOW THERE'S BEEN SOME MOVEMENT WITH THE TENANT AND LOTTS DEAL.

UH, THEY ARE TRYING TO CLOSE ON THEIR LAND.

THEY, THEY GOT AN AWARD FROM THE CITY FOR SOME FUNDS.

UH, SO ALL THEY HAVE TO DO IS WAIT FOR THAT AUGUST COLLAPSE, UH, SEE WHERE THEY SHAKE OUT AND BOND RESERVATION AND TRY TO GET THAT ONE CLOSED.

UH, SHORTLY THERE SOON.

ANY QUESTIONS ON THE PIPELINE REPORT? ANYONE ONLINE? THAT IS THE END OF OUR POSTED AGENDA.

IT IS 12:53 PM AND THIS MEETING.