[Special Called Housing and Homelessness Solutions on October 29, 2024.]
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IT'S BEEN A MOTION AND A SECOND ALL WHO APPROVE SAY AYE.
WE'LL NOW GO INTO OUR FIRST BRIEFING ITEM A.
I'M CYNTHIA ELICKSON, DIRECTOR FOR HOUSING AND COMMUNITY DEVELOPMENT.
I'M SORRY, HOUSING AND COMMUNITY DEVELOPMENT.
YES, THAT IS OUR NEW TITLE AND I WANT TO THANK YOU FOR GIVING US THIS OPPORTUNITY TO TALK ABOUT DALLAS HOUSING, FINANCE CORPORATIONS AND DALLAS PUBLIC FACILITY CORPORATION AND THEN ALLOWING US TIME TO TALK ABOUT THOSE THAT BUSINESS IN GENERAL AND HOW THEY OPERATE WITHIN THE CITY.
I'M GOING TO START WITH AND LET ME ALSO THANK ALL OF OUR GUESTS THAT ARE HERE TODAY.
I WANT TO INTRODUCE JACQUELINE SCHROEDER, WHO IS OUR NEW INTERIM MANAGER OVER ADMINISTRATION FOR OUR HOUSING FINANCE CORPORATION AND PUBLIC FACILITY CORPORATION FOR THE CITY OF DALLAS.
SHE WILL BE HELPING ME WITH THIS PRESENTATION.
SO I WANT TO SAY THAT THE PURPOSE OF THE PRESENTATION IS TO HAVE A ROBUST DISCUSSION ABOUT PFC'S AND HFC'S, BOTH FOR THE CITY OF DALLAS AND IN GENERAL, TO DISCUSS OUR REVENUES THAT ARE COMING IN TO THOSE ENTITIES TO DISCUSS THE LONG TERM FUTURE OF OUR PFC AND HFC, AND THEN TO DISCUSS SHORT TERM PLAN ON HOW WE MOVE FORWARD FROM HERE.
AND WITH THAT, I'M GOING TO PASS IT OVER TO JACKIE.
THANK YOU, CYNTHIA. JACLYN SCHROEDER ADMINISTRATOR, INTERIM FOR DALLAS HOUSING FINANCE CORPORATION IN THE PFC. SO CYNTHIA MENTIONED THE PURPOSE OF THE PRESENTATION, AND YOU GUYS HAVE THE SLIDES.
NEXT SLIDE PLEASE. THAT'S A LITTLE BIT AHEAD, I THINK, GO BACK.
ALL RIGHT. MAYBE WE HAVE THE WRONG SLIDE.
IT SHOULD BE ON PFC BACKGROUND, SLIDE THREE.
OKAY, WELL, I CAN JUST KIND OF SPEAK TO IT.
WELL, AND I SHOULD SAY FOR BOTH THESE ARE PUBLIC INSTRUMENTALITIES.
THESE ARE NONPROFIT ORGANIZATIONS.
FOR THE PFC CHAPTER 303 IS THE TEXAS CODE BY WHICH IT'S GOVERNED.
IT WAS STARTED IN JUNE OF 2020, SO IT'S RELATIVELY NEW.
SO THAT GIVES US A GREAT OPPORTUNITY FOR VOUCHERS.
THE PROJECT AFFIRMATIVELY FURTHER FAIR HOUSING IN THE CITY OF DALLAS.
DEVELOPERS AND PROPERTY MANAGERS OF PROJECTS ENGAGE IN AFFIRMATIVE MARKETING PLANS.
THE AFFORDABILITY IS LOCKED IN TO THE PROPERTY.
IT PROVIDES A DIVERSE MIX OF HOUSING OPTIONS FOR FAMILIES, ESPECIALLY FAMILIES WITH CHILDREN.
ALL PFC PROJECTS ALIGNED WITH DALLAS HOUSING POLICY 2033 AND THE AMI TARGETS ARE ADJUSTED FOR FAMILY SIZE AND THEN THE RENT RESTRICTIONS ARE BASED ON 30% OF THE APPLICABLE AMI AS ESTABLISHED BY HUD AND HCA AND LASTLY FOR THE PFC WITH THIS BRACEWELL AND JIM PALMER, WHO WE'RE GOING TO HEAR FROM SOON.
THAT'S WHO WE USE FOR ALL LEGAL SERVICES, HILLTOP SECURITIES.
BRAXTON PARSONS IS OUR COUNSEL FOR THAT.
THEY EVALUATE ALL PROJECTS, INCLUDING THE UNDERWRITING ON THE FRONT END OF THE DEAL AND THEN WE USE BROWN GRAHAM FOR ALL ACCOUNTING SERVICES. SO MOVING ON TO THE HFC.
THIS WAS CREATED IN 1984, AND IT'S UNDER CHAPTER 394 AND THEN.
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DO YOU GUYS HAVE THESE SLIDES? JUST KEEP GOING FOR THE PUBLIC AND RECOMMENDED POINT OF INFORMATION FOR THE PUBLIC.WE SHOULD BE TALKING TO THESE GUYS.
1984. BUT MOST RECENTLY, WE DID A REVAMP OF THE WHY NOT REVAMP.
WE HAD CHANGES TO THE BYLAWS IN 2018 AND 2019 TO MAINTAIN AFFORDABLE HOUSING, PROMOTE MORE CHOICE IN FAIR HOUSING OPTIONS AND OVERCOME PATTERNS OF SEGREGATION AND CONCENTRATION. WE'RE GOING TO TAKE A QUICK PAUSE, JUST FOR A MINUTE.
SURE. WE HAVE SLIDES THAT ARE NOT THESE.
SO WE'RE ASKING FOR OUR TEAM TO SEND THEM AGAIN SO THAT THEY CAN BE UPLOADED.
[INAUDIBLE]. CAN YOU GIVE ME THE TITLE OF THE PAGE AND THE NUMBER.
DO YOU ALL SEE THAT SLIDE? OKAY. BECAUSE THAT'S NOT WHAT IT'S SHOWING.
OKAY. JUST A REQUEST CHAIR FOR THE SPEAKERS.
IF YOU CAN JUST ACKNOWLEDGE WHICH SLIDE YOU'RE ON WHEN YOU'RE ON IT.
LIKE THE SLIDE NUMBER FOR THE PUBLIC I THINK THAT WOULD BE VERY HELPFUL.
WILL DO. OKAY. SO AGAIN I'M ON DHFC, BACKGROUND SLIDE 4 AND I THINK THAT KIND OF COVERS EVERYTHING THAT I WAS GOING TO MENTION ON THE FOR THE HFC.
THAT TEAM IS RYAN BOWEN, NORA O'BRIEN AND RACHEL JENSEN.
HILLTOP SECURITIES HAS USED HER IN THE SAME FORM OF PROJECT EVALUATION AND UNDERWRITING.
THAT IS TO NELSON AND BRAXTON PARSONS AND THEN WE ALSO HAVE BGC IS OUR ACCOUNTING AS WELL AND THEN OUR BOND COUNSEL IS MISSING HERE.
THAT IS BRACEWELL AND GEORGE RODRIGUEZ AND IS THE COUNSEL FOR THAT VERY IMPORTANT PART OF THE TEAM AND THEN NOW I'M ON SLIDE FIVE.
THAT'S THE PFC PROJECT PROPOSAL REVIEW PROCESS NUMBERED SLIDE FIVE.
SO THIS IS JUST A VERY BASIC OVERVIEW OF PFC APPLICATION PROCESS.
SO THAT'S INCLUDED IN THE PRESENTATION AS APPENDIX A IT IS ACCESSIBLE ONLINE.
THAT INCLUDES A LIST OF ITEMS REQUIRED.
ONCE IT IS SUBMITTED, IT GOES TO STAFF REVIEW.
WE ALSO AT THAT POINT ENGAGE OUR OUTSIDE COUNSEL TO DISCUSS THE TERMS OF THE PROJECT.
IT THEN GOES TO UNDERWRITING AGAIN.
THAT'S BRAXTON PARSONS FOR HILLTOP.
THIS IS A [INAUDIBLE] IN THIS REVIEW.
WE DO CONSIDER WHETHER OR NOT THIS PROJECT WOULD BE FEASIBLE IF NOT FOR THE PFC'S PARTICIPATION.
I KNOW WE HAVE THAT ONE BECAUSE I SAW IT.
OKAY. SO OUTSIDE COUNSEL CONSIDERATION AGAIN WE CONFER WITH THE DEVELOPER AND THE BOARD.
THE PROJECT THEN GOES TO PRELIMINARY BOARD APPROVAL, AND THEN WE GO TO HHSC AND THEN EVENTUALLY COUNCIL OR COUNCIL APPROVAL, AND THEN WE DO A FINAL DPFC BOARD APPROVAL ONCE WE'RE HEADING INTO CLOSING AND THAT ALLOWS THE DEAL TO CLOSE FOR THE HFC.
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STAFF REVIEW, SAME THING.WE ENGAGE OUTSIDE COUNSEL AND FOR CONSIDERATION OF THE OF THE DEAL.
WE ALSO CONFER WITH OUR FINANCIAL ADVISORS AND HFC COUNCIL, BOND COUNCIL IS INVOLVED AND FOR THIS AS WELL, WE GO TO THE HFC FOR BOARD APPROVAL.
IT GOES TO COMMITTEE AND THEN COUNCIL.
I DID WANT TO MENTION THAT THIS WILL DIFFER A LITTLE BIT FOR THE HFC BECAUSE OF OUR INVOLVEMENT WITH THE 4% TAX PROGRAM.
FOR THAT, WE WILL DO A NEED A RESOLUTION OF NO OBJECTION THAT WILL GO TO COUNCIL AND THEN WE FOLLOW UP WITH THE TEFRA HEARING, WHICH IS THE HEARING WHERE COMMENTS FROM THE PUBLIC ARE WELCOMED BASED ON THE TAX ABATEMENT.
THAT THEN COMES BACK TO COUNCIL TO AFFIRM THAT THE MEETING HEARING TOOK PLACE AND MOVING ON TO THE EXCUSE ME, PFC, SORRY.
YOU'LL SEE A BREAKDOWN OF 2023 VERSUS 2024.
WE'VE LISTED OUR APPLICATION FEES, STRUCTURING FEES THAT GO INTO REVENUE.
EXPENSES ARE VERY FEW, BUT INCLUDE SALARIES.
SOME OF OUR PROFESSIONAL SERVICES SOME OFFICE EXPENSES, INSURANCE AND THEN SOME TRAVEL EXPENSES WITH CONFERENCES AND THEN WE HAVE OUR NET POSITIONS DOWN AT THE BOTTOM AND I DO WANT TO MENTION THAT ACTUALLY FOR THIS ONE, THIS IS GOING TO BE CASH ON HAND FOR THE PROGRAM AND IT'LL DIFFER A LITTLE BIT ON THE HFC SIDE, BUT I'LL EXPLAIN THAT IN A SECOND.
SO FISCAL YEAR 2023, WE ENDED WITH 2,137,853 AND THEN THE SCHOOL YEAR AND THIS I THINK IS THROUGH THIS MONTH.
BUT THAT IS 3.8 MILLION ABOUT FOR THE HFC.
BUT YOU'LL SEE SAME THING FISCAL YEAR 2020.
OKAY AND THEN SAME THING, VERY SIMILAR EXPENSES.
AS I MENTIONED, WE DID LOOK AT THIS THROUGH OUR NET POSITION AS OPPOSED TO CASH ON HAND. SO OUR NET POSITION AS OF AUGUST 31ST, 2023, EXCUSE ME, 2024 IS ABOUT 23.6 MILLION, BUT ACTUALLY, THE CASH ON HAND IS ABOUT 17 MILLION RIGHT NOW AND WE HAVE ABOUT THREE MORE MINUTES FOR THIS PRESENTATION.
I'M JUST ABOUT DONE, ACTUALLY.
OKAY. SO THEN WE GO TO SLIDE NINE.
I'D LIKE TO MAKE A CORRECTION ON THIS SLIDE.
THIS CORRECTION I'D LIKE TO MAKE ON THIS SLIDE AND HERE WE WANT TO TALK ABOUT WHAT WE'RE EXPERIENCING AND WHERE WE GO FROM HERE. SO THEY WE KNOW THEY HAVE REVENUES ON HAND.
WE KNOW THE CORPORATIONS HAVE REVENUES ON HAND AND THEY CURRENTLY RETAIN ALL REVENUE.
SO THE QUESTIONS WE HAVE IS HOW SHOULD EXISTING DFC REVENUES BE USED? HOW SHOULD FUTURE REVENUE BE USED? AND THEN WE GO TO LOCATION DFCS AND DFCS CAN BE DEVELOPED THROUGHOUT THE CITY AND THERE'S AN UNLIMITED NUMBER OF WHEN HOW MANY WE CAN DO A YEAR.
THERE'S NO SPECIFICITY ON HOW MANY PROJECTS WE SHOULD DO.
SHOULD PROJECTS BE LIMITED TO HIGH OPPORTUNITY AREAS ONLY WITH POVERTY LEVELS OF 20% OR BELOW? SHOULD THE PROJECT NUMBER OF ANNUAL PROJECTS BE LIMITED? TOTAL NUMBER OF ANNUAL PROJECTS BE LIMITED? SHOULD WE CONSIDER PROXIMITY GUIDELINES WHERE THEY GO? SHOULD WE PROHIBIT THESE TAX EXEMPT PROJECTS IN TIF DISTRICTS AND OTHER AREAS THAT WE, AS THE CITY, DEPEND ON FOR REVENUE?
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AND THEN WE GO TO THE APPROVAL PROCESS.CURRENTLY, THE DHFC AND THE DFC STAFF REVIEW THE APPROVAL PROJECTS.
HOUSING AND COMMUNITY DEVELOPMENT STAFF IS NOT PART OF THE PROJECT REVIEW OR APPROVAL PROCESS AND THEN THOSE QUESTIONS RELATED TO THAT IS SHOULD WE CHANGE THAT PROCESS AND SHOULD CITY APPROVAL COME AFTER ALL BOARD APPROVALS? YOU KNOW, TALKING ABOUT THE TIMING OF WHEN THEY COME TO YOU AND OR, YES, TALKING ABOUT THE TIMING OF WHEN THEY COME TO YOU EARLY ON OR AFTER ALL OF THE PROCESS HAS BEEN DONE AND THEN WE GET TO CONTROLS.
DPSC AND HFC ARE SEPARATE LEGAL ENTITIES WITH THEIR OWN STAFF AND ADVISORS.
THERE IS NO CITY STAFF OR ELECTED OFFICIALS ON THE BOARD AT THIS TIME AND SHOULD THAT CHANGE, SHOULD STAFF BE ON THE BOARD? SHOULD WE HAVE REPRESENTATION ON THERE? SHOULD CITY OFFICIALS BE ADDED AS EX-OFFICIO BOARD MEMBERS? AND WHAT IS THE ROLE OF CEO VERSUS OUTSIDE COUNCIL? SO THOSE THINGS ARE AREAS THAT WE WANT TO GET CLARIFICATION ON AND THEN THE NEXT SLIDE 11 NEXT STEPS.
SO I HAVE QUESTIONS ABOUT WHERE DO WE GO FROM HERE WHILE WE WORK THROUGH BYLAW REVIEWS AND PROCESS CHANGES AND I HAVE IT IN GREEN, YELLOW, RED. SHOULD WE CONTINUE AS IS? SHOULD WE PUT A HALT ON ANY NEW PROJECTS AND CONTINUE THROUGH WITH THE ONES WE CURRENTLY HAVE IN THE PIPELINE, OR SHOULD WE HALT ALTOGETHER? THAT'S A QUESTION FOR ALL OF YOU.
AND THEN THE LAST SLIDE, WHICH IS 12 OUR NEXT STEPS.
WE HAVE CREATED FILES FOLDERS FOR COUNCIL AND COMMITTEE MEMBERS TO REVIEW THE BYLAWS AND SUBMIT CHANGES AND SUGGESTIONS COMMENTS TO ANYTHING WE TALK ABOUT.
IF YOU CAN'T DO IT TODAY, WE'VE CREATED FOLDERS FOR YOU TO SUBMIT THAT INFORMATION TO US.
ESPECIALLY THE BYLAW CHANGES WHEN YOU HAVE A CHANCE TO REVIEW THOSE AND HAVE ANY SPECIFIC CHANGES YOU WOULD LIKE TO MAKE AND THE TIMELINE WE'D OFFERED IS SUBMIT ALL CHANGES BY NOVEMBER 2024.
WE'RE GOING TO HAVE THE DRAFTED PROPOSALS.
WELL, ACTUALLY IT'S DRAFTED BYLAWS AND CAO AND STAFF TO DEVELOP PROPOSAL BASED ON COMMITTEE FEEDBACK, WILL BRIEF THE PROPOSED CHANGES TO HHS IN JANUARY AND THEN COUNCIL ACTION IN FEBRUARY OF 2025 AND WITH THAT, I'LL OPEN UP FOR QUESTIONS.
CYNTHIA, THANK YOU AGAIN FOR THE PRESENTATION.
I THINK SOME OF MY REMARKS EARLIER WERE NOT CAPTURED ON AUDIO.
SO I JUST WANT TO AGAIN THANK THE AUDIENCE FOR JOINING US.
WE ARE GOING TO DO A 531 ROUND ON THESE QUESTIONS.
WE'RE GOING TO START WITH COMMITTEE MEMBERS THEN GO TO NON COMMITTEE MEMBERS AND THE REASON WE'RE HERE TODAY IS TO MAKE SURE THAT WE'RE USING HFCS AND PFCS TO THE BEST OF THEIR ABILITY, MAKING SURE THEY ARE REFLECTING THE PRIORITIES OF OUR CITY COUNCIL AND THE CITY OF DALLAS, MAKING SURE WE ARE USING THOSE REVENUES TO REINVEST THOSE BACK INTO OUR PRIORITIES.
AND SO LOOK FORWARD TO THE QUESTIONS FROM MY COLLEAGUES AND HELPING TO GET A BETTER UNDERSTANDING ON HOW TO MOVE FORWARD AS WELL AND SO WITH THAT, WE ARE GOING TO START WITH COUNCILWOMAN GAY WILLIS.
SO I WANT TO GO TO THE SLIDE FOR HOUSING FINANCE CORP.
BACKGROUND. THERE'S NO MENTION ON THAT PAGE OF THE 60% AT OR BELOW MEDIAN FAMILY INCOME.
SO WHY IS THAT NOT PRESENT? I WOULD ASK AARON IF HE COULD RESPOND TO THAT QUESTION.
YEAH. SO YOU GUYS ARE REFERRING TO THE WEBSITE THAT STATES ONE OF THE GOALS IS TO MEET THE NEEDS OF THE 60% AMI RESIDENTS, CORRECT? YES. OKAY.
I MEAN, TO BE HONEST, I DON'T KNOW WHEN THAT WAS PUBLISHED ON THE CITY WEBSITE OR BY WHOM? BUT I KNOW THAT THE STATE STATUTE DOESN'T SPECIFICALLY LIST AS A GOAL OF AN HFC TO SPECIFICALLY SERVE THOSE NEEDS.
BUT THE SCOPE OF THE ENTIRE I GUESS IF YOU WANT TO SAY CORPORATION, THE HFC, IT CAN MEET THE NEEDS OF A WIDE RANGE OF AMI LEVELS, NOT JUST THE 60% OR NOT JUST 30 OR NOT JUST 80.
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AGAIN, I DON'T KNOW WHEN THAT WAS PUBLISHED ON THE CITY WEBSITE.IT WAS PROBABLY MANY YEARS BACK BEFORE ANY OF US WORKED THERE.
SO I CAN'T SPEAK TO WHY THAT'S THIS ISN'T INSPIRING CONFIDENCE, YET IT AFFIRMS WHY WE'RE HERE TODAY.
COUNCILWOMAN CAN I ALSO ADD TO THAT? I WANTED TO SEE IF AARON HAD A VERY SPECIFIC TIMELINE AS TO WHEN ANY CHANGES MAY HAVE OCCURRED IN THE HFC.
WHAT IS NOT HAPPENING IS THAT WE ARE NOT CAPTURING THAT INFORMATION IN A REPORT TO YOU.
WHAT IS BEING WHO THEY'RE SERVING BELOW 60% AMI AND WE'RE GOING TO MAKE SURE THAT MOVING FORWARD WE ARE REPORTING ON THAT SPECIFIC INFORMATION TO YOU.
WELL, AND IT'S IN AN UPCOMING PRESENTATION.
SO YOU DO GET A SENSE OF HOW IT'S SHAKING OUT.
BUT I MEAN, TO LOOK AT THIS WHEN I LOOK AT THE OTHER LANGUAGE ON THIS SLIDE ABOUT WHAT WE CREATED IN 1984 AND THE PRIMARY GOAL TO SUPPORT THE BROAD GOALS OF THE CITY OF DALLAS HOUSING POLICY.
SO IT'S GOT TO INTERSECT SOMEWHERE.
SO I'LL BE INTERESTED TO HEAR FROM MY COLLEAGUES ON THIS.
WE ALSO HAVE THE DATA TO SUGGEST WHERE WE ARE LACKING HOUSING AT CERTAIN INCOME LEVELS.
SO DEFINITELY SOMETHING THAT WE NEED TO COME TOGETHER ON.
SO ONE QUESTION I HAVE I'M MOVING TO SLIDE 7.
SO ONE CONCERN THAT EXISTS, AND YOU EVEN REFERENCED IT IN DO WE WANT TO BUILD THESE IN TIF DISTRICTS WHERE WE NEED TO GENERATE THAT INCREMENT, ETC., IS CAN WE GET OUR LEASE AGREEMENT? SO WE'RE GETTING SOME REVENUE BACK, BUT IT GOES BACK INTO A PFC.
SO I'M TALKING ABOUT PFC IN THIS CASE IS HFC AS WELL.
BUT ABOUT WHAT THE RESOURCES ARE THAT ARE USED, CITY RESOURCES THAT ARE USED, THAT THE CITY IS NOT RECOUPING ANY KIND OF INCOME FOR AND DOES THAT OFFSET THE FACT THAT WE ARE HOUSING SEGMENTS THAT ARE STRUGGLING WITH THE AFFORDABILITY AND THE AVAILABILITY AND SO HAVE WE OR I'M ASKING IF WE DON'T HAVE IT AND I DON'T THINK THAT WE DO IS TO LOOK AT OUR PROPERTIES, UNDERSTAND THE 311 CALLS, UNDERSTAND THE 911 CALLS, AND BEGIN TO GET A PICTURE OF WHETHER THESE HAVE A DISPROPORTIONATE BURDEN ON USE OF RESOURCES.
IF IT'S AVERAGE, WHAT? WHAT IS IT? BECAUSE ONE THING I MIGHT QUESTION IS WHAT OUR LEASE AGREEMENTS ARE, OR SHOULD IT BE 100% TAX ABATEMENT? SHOULD IT BE 90%? SHOULD IT BE 95? SHOULD IT BE 80? I DON'T KNOW, BUT UNTIL WE UNDERSTAND WHAT ANY KIND OF DRAW ON THE SYSTEM WOULD BE, I DON'T THINK WE'LL KNOW.
HAS THERE BEEN ANYTHING AROUND THAT, WHETHER IT'S IN THIS MARKET OR ANY KIND OF RESEARCH YOU'RE AWARE OF, TO SHOW WHETHER THESE PROPERTIES HAVE ANY KIND OF DISPROPORTIONATE USE OF RESOURCES? IF I MAY EXCUSE ME.
AARON QUINTAL, GENERAL MANAGER OF THE HFC.
SO WE ACTUALLY HAVE COMMISSIONED A STUDY BY AN OUTSIDE GROUP, THE CONCORD GROUP, AND THEY ARE LOOKING AT THIS PARTICULAR QUESTION BECAUSE I THINK EVERYONE WANTS TO KNOW WHAT'S THE ACTUAL EFFECT, WHAT HOW MUCH ARE WE REALLY CAUSING AS A QUOTE UNQUOTE LOSS TO THE CITY? AND HOW ARE WE AFFECTING OTHER SERVICES? AND SO THE STUDY IS NOT COMPLETE YET, BUT I GOT SOME SLIDES LAST NIGHT.
SO THIS IS PRELIMINARY INFORMATION, BUT THEY WERE LOOKING AT THE ENTIRE GENERAL.
WILL YOU PULL THAT MIC A LITTLE CLOSER TO YOU.
YEAH, SORRY. THANK YOU. THEY WERE LOOKING AT THE ENTIRE GENERAL FUND BUDGET AND THEY'RE TRYING TO DO AN AVERAGE AND THEY SAY PER 100 UNITS THAT'S TAKEN OFF THE TAX ROLLS, IT'S ABOUT A 4.91 THOUSANDTHS OF A PERCENT EFFECT ON THE GENERAL FUND IN THE CITY.
BUT IT SEEMS RELATIVELY SMALL ON A PER 100 UNIT BASIS.
RIGHT AND SO OBVIOUSLY YOU CAN'T JUST GO ON TAX EXEMPT EVERY SINGLE PROPERTY.
THAT'S NOT THE GOAL HERE, RIGHT? SO I THINK THE GOAL IS TO, YOU KNOW, IN A VERY MEASURED AND CAREFUL WAY, ASSERT THESE INVESTMENTS IN AN AREA WHERE THEY'RE GOING TO BE MOST IMPACTFUL WITH MINIMAL IMPACT TO THE REST OF THE CITY SERVICES.
RIGHT AND SO AS SOON AS WE GET THIS STUDY DONE, THAT'LL BE SENT OUT TO ALL OF YOU.
BUT IT'S SOMETHING THAT THE HFC AND OBVIOUSLY THE HOUSING DEPARTMENT IS VERY ATTUNED TO.
OKAY. WELL, I'M PLEASED TO HEAR THAT.
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ONE THAT WE'RE WILLING TO LIVE WITH.BUT I'M GLAD TO HEAR THAT THIS STUDY IS GOING ON SO THAT WE'RE GOING TO PUT SOME NUMBERS AROUND THAT AND THEN THE JUST IN THE INTEREST OF OTHERS TIME ON SLIDE NINE WHERE WE TALK ABOUT LOCATION.
IS THERE HAVE HAS ANYONE ELSE ARRIVED AT, YOU KNOW, THE SOME MAGIC AROUND CONCENTRATING POVERTY OR LIMITING TO HIGH OPPORTUNITY AREAS? OR ARE THERE SOME OTHER CITIES WHO HAVE CRACKED THE CODE ON WHAT A GOOD POLICY IS AROUND SOME OF THESE ISSUES THAT YOU RAISE? BECAUSE THERE ARE CONCERN, I THINK, OF THIS COMMITTEE, BUT WE DON'T NECESSARILY HAVE SOMETHING TO POINT TO.
YEAH. SO I'M NOT AWARE OF OTHER CITIES AND HOW THEY MANAGE THIS, THAT SITUATION.
I WILL SAY THAT FOR THE CITY OF DALLAS HISTORICALLY, BECAUSE WE HAVE REVIEWED RECAP AREAS OF CONCENTRATION, AND WE KNOW WHERE THEY EXIST AT THIS TIME, THAT WE ARE VERY AWARE OF WHERE WE SHOULD AND SHOULDN'T PUT TAKE PROJECTS THAT ARE SERVING VERY LOW INCOME PEOPLE AND PLACE THEM IN AREAS SUCH AS THAT.
THE CHALLENGE HERE IS THAT THE CITY OF DALLAS LAND AVAILABILITY TENDS TO BE IN THE SOUTHERN SECTOR, WHERE WE KNOW THESE RECAP AREAS EXIST. SO THE BALANCE HAS TO BE OR THE DISCUSSION HAS TO BE AROUND THE BALANCE OF WHAT DO WE DO WITH THIS? WE KNOW WE NEED AFFORDABLE HOUSING AT CERTAIN INCOME LEVELS, BUT PUTTING THEM IN AREAS WHERE RECAP ALREADY EXIST, IS THAT THE RIGHT THING WE SHOULD BE DOING, AND HOW SHOULD WE MANAGE THAT BETTER? AND SO, YOU KNOW, WE'RE STILL LOOKING AT HOW TO DO THAT.
YOU KNOW, WE'VE GOT TO PUT IT SOMEWHERE AND WE'RE AWARE OF WHERE THE RECAP AREAS ARE.
I DO WANT TO SPEAK VERY QUICKLY TO THE TIF CONCERN.
SO TIF CONCERN IS TAKING MARKET RATE PROPERTIES OFF THE EXISTING TIF THAT HAS BEEN CALCULATED FOR AN INCREMENT. MAYBE NOT SUCH A GOOD IDEA FOR WHAT WE SHOULD BE DOING AND WE WANT TO BE COGNIZANT THAT IS POSSIBLY HAPPENING AND COULD HAPPEN.
WELL, AS I LOOK AT THAT AT FACE VALUE, THAT MAKES ALL THE SENSE IN THE WORLD.
IT'S GOT A TIF AND IT IS AT A POINT OF REDEVELOPMENT IS GOING TO HAPPEN AND THERE COULD BE DISPLACEMENT AND SO WE'RE STRUGGLING WITH THIS AND I LOOK AT A PROGRAM LIKE THIS AND THINK THIS COULD HELP OFFSET THAT.
SO I'D LOVE TO KNOW MORE ABOUT THAT AND MAYBE SOME OF THESE NUMBERS WILL HELP.
I'M THAT IS ONE THAT IT REALLY STRUCK ME BECAUSE I'VE GOT AN AREA THAT IS SO RIPE FOR THIS AND WHERE THIS COULD ACTUALLY BE A HELPFUL TOOL, BUT UNDERSTANDING THE OFFSET BETWEEN WHAT IT MIGHT TAKE OFF THE TAX ROLLS VERSUS THE POPULATION, IT WILL HELP.
THAT COULD THEN LESSEN THE RESOURCES THAT ARE DRAWN UPON OF THE CITY.
YES AND GETTING TO A POINT WHERE WE CAN QUANTIFY THAT SOMEHOW WOULD BE HELPFUL AND I THINK ECONOMIC DEVELOPMENT CAN GIVE US NUMBERS AS TO WHAT THAT MEANS TO THE INCREMENT THAT THEY'VE THEY'VE CALCULATED.
ALL RIGHT, I'LL YIELD TO COLLEAGUES.
I APPRECIATE YOU BRINGING THIS TO US.
CHAIR, I KNOW THIS HAS BEEN KIND OF BUBBLING UP FOR A WHILE.
SO TO ME, THE PUBLIC FACILITIES CORPORATION, HOUSING FINANCE CORPORATION ARE THE TWO MOST IMPORTANT AND IMPACTFUL TOOLS WE HAVE FOR ENABLING NEW AFFORDABLE HOUSING AND PRESERVING IT FOR RENTERS AND WE'VE GOT TO MAKE SURE THESE PROGRAMS ARE WORKING.
THAT'S WHY I'M GLAD WE'RE HERE TODAY.
FROM WHAT I'VE HEARD AND READ, CHAIR, THE CORE QUESTION FOR US TODAY THAT REALLY YOU'RE LOOKING FOR GUIDANCE TODAY IS HOW AUTONOMOUS WE BELIEVE THE CORPORATION SHOULD BE.
I SEE THAT THE BOARDS ARE WANTING MORE AUTONOMY AND FLEXIBILITY.
I'M SEEING CITY STAFF WANT TO HAVE MORE INFLUENCE AND INVOLVEMENT AND A LITTLE MORE CONTROL.
OKAY. SO I SEE THE THREE OPTIONS ON SLIDE 11, AND I DO NOT SEE, RED OR REALLY EVEN YELLOW AS AN OPTION AT THIS POINT.
BECAUSE I SEE THE DIFFERENCES ON THE EARLIER SLIDES NINE AND TEN REALLY JUST BEING ABOUT GOVERNANCE AND ADMINISTRATION, NOT ABOUT THE SUBSTANTIVE MAKEUP OF ANY PROJECTS.
I THINK THAT THOSE ARE, YOU KNOW, WE THEY STILL COME TO COUNCIL.
WE STILL WEIGH EACH OF THEM OURSELVES AND CAN APPROVE OR DENY THEM.
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BUT YOUR ISSUES HERE ARE REALLY ON GOVERNMENTS AND ADMINISTRATION.SO BECAUSE OF THAT, I DON'T SEE A NEED TO STOP ACCEPTING.
I DON'T SEE A NEED TO STOP PROCESSING NEW PROJECTS.
NOW I'M GOING TO TURN TO MY QUESTIONS ON SLIDES NINE AND TEN, WHICH I'M NOT REALLY PREPARED TO GO IN DEPTH ON A LOT OF THEM, BUT THERE'S A FEW THAT I CAN ADDRESS TODAY.
ALL RIGHT. I'M GOING TO JUST JUMP.
I DON'T HAVE ANSWERS TO THE REVENUE ONE.
I'M MAYBE COME BACK IN ON THOSE QUESTIONS LATER.
HERE'S WHERE MY COLLEAGUES ARE ON HOW THE REVENUES WILL BE USED.
I THINK IT'S TOO BIG OF A QUESTION, FRANKLY, TO ADDRESS TODAY.
I'M STILL WORKING THROUGH THOSE AS WELL.
BUT I WILL SAY ON BULLET NUMBER THREE, THE TOTAL NUMBER OF ANNUAL PROJECTS.
SHOULD THEY BE LIMITED? I DON'T THINK WE SHOULD SET SOME ARBITRARY NUMBER LIKE FIVE NEW PROJECTS.
I THINK THAT WOULD BE A DISSERVICE.
I THINK IT SHOULD BE BASED ON TARGETED GOALS AND FORECASTS, WHICH WE'RE STILL WAITING ON FROM STAFF AND ONCE WE HAVE TARGETED GOALS AND FORECASTS, WE CAN THEN SAY, ALL RIGHT, THE NEXT FIVE YEARS OR TEN YEARS, WE WANT THIS MANY UNITS.
STAFF AND BOARDS FIGURE OUT HOW TO GET THOSE UNITS FOR US.
I THINK IT WOULD BE A DISSERVICE TO SAY, ALL RIGHT, WE'RE JUST GOING TO RANDOMLY SET A NUMBER LIKE WE SHOULD JUST TELL YOU, MEET THE TARGETED GOALS AND YOU GUYS FIGURE OUT HOW TO DO IT. MY INCLINATION ON THE LAST BULLET ON PRESENTING PROHIBITING TAX EXEMPT PRIVATE PROJECTS IN TIF DISTRICTS. MY INCLINATION IS TO SAY, YEAH, WE SHOULD PREVENT THEM.
BUT HEARING COUNCILWOMAN WILLIS'S EXAMPLE WAS REALLY GOOD FOR ME TO HEAR BECAUSE IT'S LIKE EVERY DEAL IS DIFFERENT AND EVERY DEAL IS KIND OF SPECIAL IN ITS OWN WAY, AND WE HAVE TO BE ABLE TO TAKE THE TIME TO WORK THROUGH EACH OF THEM.
SO I WOULD HATE TO HAVE A POLICY WHERE WE JUST CAN'T EVEN LOOK AT IT.
I THINK WE SHOULD GIVE YOU GUYS THE FLEXIBILITY TO DO THAT.
SO THE OTHER BULLETS I'LL COME BACK TO, BECAUSE I'M NOT READY FOR THOSE GOING DOWN TO SLIDE TEN.
THESE ARE MORE THAT I'M NOT QUITE READY FOR JUST YET, BUT THE BULLET NUMBER THREE UNDER THE APPROVAL PROCESS SHOULD THE CITY APPROVAL COME AFTER ALL BOARD APPROVALS? I THINK GENERALLY, YES, BECAUSE WE LET YOU GUYS VET THEM OUT AND THERE MAY BE SOME THAT WE DON'T EVEN NEED TO SEE.
BUT I DO THINK THAT ZONING SHOULD COME TO US FIRST, BECAUSE A LOT OF TIMES THAT TAKES SO MUCH LONGER AND WE NEED TO GET THAT OUT OF THE WAY BEFORE YOU WORK THROUGH THE FINANCIAL ASPECTS OF IT. SO FROM MY PERSPECTIVE, I FEEL LIKE THAT KIND OF ALREADY HAPPENS THAT THE ZONING IS COMING TO US FIRST, AND I DON'T THINK THAT SHOULD CHANGE, AND I'M GOING TO JUST STOP THERE FOR MY FIRST ROUND.
I HAD A GENERAL QUESTION ON SLIDE THREE.
WHAT DOES THAT MEAN? I BELIEVE THAT REFERS TO THE AFFORDABILITY LOCKED INTO THE PROPERTY FOR THE LIFE OF THE LEASE TERM.
DID I SAY THREE? YES, THAT HAS TO DO WITH THE AFFORDABILITY TERM.
BECAUSE AFFORDABILITY TERMS ARE ANYWHERE FROM 20 TO 30 TO 50 TO YEARS.
OKAY. ALL RIGHT. THANK YOU. NOW I SAY, I THINK I'LL START KIND OF THE WAY CHAIR WEST STARTED IN TERMS OF THE OPTIONS IN TERMS OF CONTINUING TO KEEP THE PROJECTS MOVING.
I AM A FAN OF THESE PROJECTS, BUT I THINK I DO TEND TO THINK IT IS TIME FOR US NOW.
YES. WE PROVIDED THAT MAP IN THE PRESENTATION WE DID ON THE PFC SIDE.
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I DON'T BELIEVE YOU'VE RECEIVED A MAP FOR THE HFC PROJECTS.THERE'S ONE IN THE HFC PRESENTATION.
OKAY. THANK YOU AND THEN SO REALLY OBVIOUSLY JUST LOOKING AT A STRATEGIC WAY TO ENSURE THAT THEY ARE STRATEGICALLY BEING LOCATED IN THE AREAS THAT WILL GET THE BEST BENEFIT.
SO THOSE ARE SOME OF THE I'M NOT GOING TO GO INTO A LOT OF DETAILS NOW, BUT THOSE ARE SOME OF THE RECOMMENDATIONS I'LL BE COMING BACK WITH IN TERMS OF THE USE OF THE REVENUE AND THEN ENSURING THAT THEY ARE STRATEGICALLY LOCATED IN AREAS THAT REALLY BENEFIT THE COMMUNITY AND THE CITY WITHOUT TAKING AWAY FROM THE PROPERTY TAX ROLL.
SO I'LL STOP THERE. THANK YOU.
THANK YOU. WELL, I HAVE A NUMBER OF ITEMS. I'M JUST GOING TO FIRST SAY I REALLY LIKE YOUR SLIDE NINE AND TEN AND THE QUESTIONS THAT YOU'RE ASKING THE COUNCIL, AND I THINK THOSE ARE VERY WELL THOUGHT OUT.
SO I HAVE A COUPLE OF THINGS TO SAY WITH ANSWERS, BUT NOT UNLIKE WHAT COUNCIL MEMBER WEST SAID.
I THINK IT'S UNREALISTIC TO HAVE A NOVEMBER DEADLINE FOR THIS.
SO ON THE FIRST QUESTION ABOUT REVENUE AND HOW REVENUE SHOULD BE USED, I THINK THAT THE ENTIRE GOAL OF THIS SHOULD BE THAT WE'RE CREATING HOUSING THAT'S NOT AVAILABLE FOR VERY LOW INCOME AND INDIGENT POPULATIONS.
THERE'S LITERALLY HUNDREDS AND HUNDREDS OF AVAILABLE UNITS OF 60% AREA MEDIAN INCOME AVAILABLE FOR TAX PAYING ENTITIES. IT'S AVAILABLE IN OUR CITY AND SO WHAT I WOULD HOPE IS THAT BOTH CORPORATIONS WOULD BE FOCUSED ON WHAT'S NOT AVAILABLE, WHICH IS THE 60%, WHICH IS THE MULTIPLE BEDROOM UNITS.
WE DEFINITELY NEED THE THREE PLUS AND THAT'S WHAT I'M HOPING IT WILL BE.
YOU GO ON TO ASK THE QUESTION IS, DOES THE CURRENT POLICY CONCENTRATE POVERTY OR OTHERWISE IMPEDE THE CITY'S OBLIGATION TO AFFIRMATIVELY FURTHER HOUSING? AND I THINK IT'S THE WRONG QUESTION.
THE QUESTION IS WHERE DO WE NEED HOUSING? AND SO IF I'M TELLING YOU IN DISTRICT 12 THERE ARE HUNDREDS AND HUNDREDS OF UNITS AVAILABLE AND IN FACT, SO FAR EVERY SINGLE COMPLEX WE'VE CONTACTED HAS UNITS AVAILABLE. EVERY SINGLE ONE.
SOME OF THEM HAVE MORE THAN 100 UNITS AVAILABLE, TODAY.
THE QUESTION IS, SOME PEOPLE DON'T WANT TO LIVE THAT FAR.
I MEAN, IT LITERALLY TOOK ME AN HOUR TO GET HERE TODAY.
I UNDERSTAND THAT AND SO WHERE DO WE ACTUALLY NEED IT AS OPPOSED TO WHAT IS THE CURRENT ENVIRONMENT OF POVERTY SURROUNDING IT? IF THAT'S WHERE PEOPLE ARE CHOOSING TO LIVE, THEN PERHAPS WE DO NEED TO BUILD THERE.
THE SECOND IS, SHOULD PROJECTS BE LIMITED TO HIGH OPPORTUNITY AREAS WHERE POVERTY RATES ARE BELOW 20%? WELL, I THINK THAT JUST GOES TO WHAT I SAID.
IT'S BACK TO WHERE IS THE HOUSING ACTUALLY NEEDED? SHOULD THE TOTAL NUMBER OF ANNUAL PROJECTS BE LIMITED? I OBVIOUSLY THINK YES, WHETHER THAT'S BY NUMBER OF UNITS OR NUMBER OF PROJECTS AND SO I WOULDN'T WANT TO LIMIT THE NUMBER OF PROJECTS IF A PROJECT ONLY HAS A VERY SMALL NUMBER OF AFFORDABLE UNITS AND KNOCK OUT AN ENTIRE ITEM.
RIGHT. SO I THINK YOU'RE REALLY TALKING ABOUT HOW MANY UNITS ARE CREATED.
THE NEXT QUESTION YOU ASK IS, WELL, I'M GOING TO SKIP ONE AND SAY, SHOULD WE PROHIBIT THESE TAX EXEMPT PROJECTS IN TIF DISTRICTS? WELL, I GUESS MY QUESTION FOR YOU IS THIS WHY WOULD YOU DO THAT IF THESE PROJECTS ARE ACTUALLY ADDING VALUE TO A COMMUNITY? WHY WOULD IT BE EXEMPT FROM A TIF DISTRICT? AND THAT'S MOSTLY BECAUSE WHEN WE'RE CALCULATING THE INCREMENT THAT'S IN THAT TIF DISTRICT, IT'S ALREADY BEEN DECIDED USUALLY AND NOW WE'RE PULLING A PROPERTY OFF THE TAX ROLL THAT WAS INCLUDED IN PART OF THAT TIF INCREMENT AND SURE, IT CAN BE RECALCULATED, BUT THAT PROPERTY MIGHT BE ONE OF THE PROPERTIES THAT REALLY SUPPORTS AND VALUE THAT TIF
[00:40:04]
INCREMENT. SO THAT WAS A QUESTION THAT CAME UP FROM OF US TALKING TO OUR OTHER DEPARTMENTS AND MAKING SURE THAT WE'RE ALL INCLUSIVE, AND WE WANTED TO GET THAT TO YOU AS WELL, TO HAVE A THOUGHT ABOUT IT SO VERY OFTEN.AT LEAST AROUND THE HORSESHOE, THERE'S A DISCUSSION ABOUT HOW THE TENANTS ARE SUPPORTING THE ECONOMIC DEVELOPMENT IN OTHER WAYS, WHETHER THAT'S THROUGH SALES TAX OR OTHER ACTIVITIES AND SO, AGAIN, IF THERE'S NOT A NEGATIVE EFFECT, THEN I DON'T EVEN UNDERSTAND WHY THAT QUESTION IS BEING ASKED.
THE NEXT ON PAGE TEN SHOULD THE CITY STAFF REVIEW TO ENSURE THAT THE PROJECTS ADVANCE THE CITY'S GOALS? ABSOLUTELY. ABSOLUTELY.
YOU SHOULD BE DOING THAT AND THE TRUTH IS, MANY OF THE QUESTIONS I THINK YOU'RE ASKING US TODAY.
I'M GOING TO TURN BACK AND SAY, YOU'RE THE HOUSING PROFESSIONAL.
WE ARE JUST REPRESENTATIVES OF OUR DISTRICT AND I WOULD ACTUALLY LIKE TO CHALLENGE YOU TO INSTEAD PROVIDE US A RECOMMENDATION ON HOW YOU THINK STRUCTURAL CHANGES NEED TO BE MADE.
YOU SEEM TO BE GOING IN A DIRECTION WITH THE QUESTIONS YOU.
CYNTHIA, HOW LONG HAVE YOU BEEN AT THE CITY? 18 YEARS. YEAH.
YOU SAW THESE PROGRAMS BE DEVELOPED.
YOU SEE SOME OF THE PITFALLS AND I THINK THAT WE WOULD BENEFIT FROM YOUR GUIDANCE OF HERE'S WHAT OUR STAFF RECOMMENDATION IS, HERE'S WHAT OUR DECISION POINTS ARE.
AND THEN LET US JUST DO THE GOVERNANCE.
BUT YOU'RE REALLY THE POLICY DEVELOPER.
I AGREE AND I AM PREPARED TO MAKE MY RECOMMENDATIONS, BUT I DON'T WANT TO DO IT WITHOUT YOU HAVING AN OPPORTUNITY TO ALSO LOOK AT WHAT I AM THINKING THROUGH AND WHAT I NEED TO ADDRESS, AND GIVE US SOME FEEDBACK ON WHAT YOU THINK YOU'VE HEARD.
WELL, THE GOOD THING FOR YOU IS YOU'VE ALREADY HEARD US TALK ABOUT PFCS AND HFCS MANY TIMES.
SO THE NEXT ITEM I WOULD SAY IS THAT SHOULD THE BYLAWS SPECIFY THE CITY APPROVAL OF PROJECTS IS NOT REQUIRED AT ALL AND SHOULD IT BE AMENDED? YES, OF COURSE IT MUST BE AMENDED AND AS IT TURNS OUT, I BELIEVE SINCE I'VE BEEN ON COUNCIL, EVERY SINGLE PROJECT, 100% OF THEM HAVE BEEN APPROVED BY THE CITY COUNCIL AND SO AT SOME POINT, YOU HAVE TO WONDER IF IT'S GETTING THE SCRUTINY.
IT SHOULD IF EVERY SINGLE PROJECT IS APPROVED AND SO I WOULD AGAIN PUT IT BACK ON THE POLICY SIDE OF THAT'S WHERE IT NEEDS TO BE EVALUATED FOR THE VALUE, BECAUSE IT'S TOO EASY FOR POLITICIANS TO SAY, WELL, I SUPPORT AFFORDABLE HOUSING.
THEREFORE, NO MATTER WHAT IT IS, NO MATTER WHAT THE COST IS, REGARDLESS OF HOW FEW UNITS ARE ACTUALLY GOING TO BE ADDED THAT DO WHAT WE NEED IT TO DO.
CYNTHIA, ON PAGE FOUR IT GOES INTO HFC'S AND WHAT THE PRIMARY GOAL IS.
AM I OVERLOOKING THAT FOR THE PFC'S ON WITH THE PRIMARY GOALS ARE.
NO, I THINK THE PRIMARY PURPOSE IS LISTED HERE.
PFC ARE THERE TO PROVIDE WORKFORCE HOUSING.
THAT IS WHAT THEY WERE DEVELOPED TO DO.
THAT WAS THE PURPOSE OF WHY THEY WERE BROUGHT TO THIS CITY IS TO DEVELOP WORKFORCE HOUSING.
THEY'RE ALSO THERE TO PARTICIPATE IN PUBLIC FACILITIES.
GIVEN THE NAME. IT'S A PUBLIC FACILITY CORPORATION AND WE HAVEN'T USED IT FOR THAT PURPOSE.
BUT IT'S MOSTLY BEEN IN THE AFFORDABLE HOUSING REALM AND THAT'S WHERE I WAS GOING WITH IS CAN YOU ELABORATE A LITTLE BIT MORE ABOUT WHAT A PUBLIC FACILITY IS? AND FOR EXAMPLE, A, I GUESS A RECREATION CENTER, A SHELTER.
CAN YOU GO A LITTLE BIT DEEPER INTO THAT.
YEAH. I MEAN, IT COULD BE A PROPERTY THAT'S OUT THERE NOT PERFORMING.
A VACANT BUILDING OR SOMETHING AND WE NEED A REC CENTER IN THAT AREA SO WE COULD PURCHASE AND UNDER THE PFC THAT PROPERTY TO DEVELOP INTO A REC CENTER OR A SOCIAL SERVICE CENTER OR SOMETHING OF THAT SORT.
BUT AGAIN, THAT HASN'T BEEN DONE FOR THIS CITY.
[00:45:04]
PAGE FIVE. WHO IS CREATING THE APPLICATIONS FOR BOTH PFC AND HFC? THOSE WERE CREATED FROM THE STAFF THAT WERE HERE PREVIOUSLY THAT STOOD UP BOTH WELL, THAT STOOD UP THE PFC AND THEN THEY WERE THE APPLICATIONS WERE REVAMPED BY STAFF THAT WERE WORKING THE HFC AND THE BOARD DOES APPROVE THE APPLICATION THAT GOES THROUGH BOARD APPROVAL. RIGHT AND SO THAT WAS SORT OF MY NEXT QUESTION IS WHO'S EVALUATING AND WHO'S APPROVING THE APPLICATIONS.SO THE BOARD EVALUATES AS WELL AS HILLTOP AND OUTSIDE COUNSEL.
THEY EVALUATE EACH OF THE PROJECTS, AND THEN THE STAFF ARE THERE TO GATHER ALL THE PAPERWORK THAT IS REQUIRED FOR THE APPLICATION TO SUBMIT TO THE BOARDS, TO GET THEM INFORMATION THAT THEY MAY NEED IN ORDER TO MAKE A DECISION ON A PROJECT.
SO, CYNTHIA, IS YOUR STAFF EVALUATING THE APPLICATIONS? SO MY STAFF HAVE BEEN IN PECULIAR POSITIONS BECAUSE AS CITY STAFF, THE CITY STAFF ARE THERE TO SUPPORT WHAT THE HFC AND PFC NEED.
BOARDS ARE SUPPOSED TO HAVE STAFF THAT ACTUALLY WORK THE PROJECTS FOR THE BOARDS.
MY STAFF IS THERE FOR THE MONITORING COMPLIANCE, ADMINISTRATION OF EACH OF THE CORPORATIONS, AND THAT'S A SECOND SET OF EYES THAT ARE SUPPOSED TO BE ON THOSE PROJECTS TO ENSURE THAT THE EACH PROJECT IS MEETING THE CITY'S GOALS AND RESPONSIBILITIES AND WHAT WE OUR INITIATIVES ARE.
AND UNFORTUNATELY, THAT HAS NOT BEEN THE CASE BECAUSE THERE HASN'T BEEN HIRED STAFF ON THE BOARD SIDE AND ARE WE SEEKING APPLICANTS OR ARE WE RECRUITING APPLICANTS, OR ARE WE WAITING FOR INDIVIDUALS TO SUBMIT APPLICATIONS? SO WE ARE MORE OF A PRO.
WE ARE MORE OF A REACTIVE GROUP WHERE WE PUT AN APPLICATION OUT AND DEVELOPERS LOOK FOR OUR APPLICATION OPPORTUNITIES TO SUPPORT WHAT IT IS WE'RE DOING AND ALSO TO REACH OUT AND TALK WITH US ABOUT HOW WE OPERATE AND WHAT THE HFC AND PFC DO. IT'S MORE REACTIVE THAN IT IS PROACTIVE.
CAN YOU PROVIDE US WITH THE BREAKDOWN OF HOW MANY APPLICATIONS WERE SUBMITTED BY US LOOKING TO THE PUBLIC OR THE PRIVATE SECTOR VERSUS SOMEONE COMING IN? IF YOU COULD PROVIDE THOSE NUMBERS FOR US.
NUMBERS? I'M NOT AS FAR AS APPLICATIONS.
I CAN'T SPEAK TO THAT SPECIFIC NUMBER OF HOW MANY WERE PROACTIVE VERSUS REACTIVE? I'M NOT AWARE OF MUCH OF THAT.
I'VE ONLY SEEN MOST THINGS BEING REACTIVE.
OKAY. CAN YOU LET ME KNOW WHAT ADVANTAGES AND DISADVANTAGES A DEVELOPER HAS TO PARTNERING WITH THE PFC AND HFC? WHY WOULD A DEVELOPER PARTNER WITH THE CITY IN ORDER TO PARTICIPATE IN EITHER OF THOSE PROGRAMS? SURE. IT'S THERE'S A LOT OF REASONS WHY THEY WOULD WANT TO PARTNER IN THAT.
IT'S CASH FLOW FOR A PROPERTY.
IT'S WHEN THEIR TAX EXEMPTION IS CONSIDERED, IT PROVIDES GOOD CASH BALANCE FOR A PROPERTY OWNER TO BE ABLE TO OPERATE THEIR PROPERTIES.
IT ALSO HELPS WITH IT HELPS US BRING SO DETERMINE IF WE'RE THINKING ABOUT WHERE PROJECTS SHOULD GO.
THESE CORPORATIONS DO A WONDERFUL JOB WITH HELPING US GET TO PRODUCTION AND ECONOMIC BALANCE IN THOSE AREAS, BECAUSE THE RISK IS LESS, IT'S LOWER WHENEVER THEY'RE NOT HAVING TO HAVE A TAX BILL.
SO WE REMOVE SOME OF THEIR RISK BY TAKING IT ON THE CITY SIDE WITH THE EXEMPTION AND ALLOWING THEM TO HAVE A GOOD CASH FLOW IN AN AREA THAT MAY NOT BE READY TO PRODUCE AT THE LEVEL THAT WE NEED IT TO AND THAT ALSO IS REDEVELOPMENT FOR GROCERY STORES AND SERVICES AND ALL THE THINGS THAT COME WITH A HEALTHY COMMUNITY AND SO THAT KIND OF TAKES ME TO THE REVENUE ON PAGE NINE.
[00:50:05]
SO WE HAVEN'T USED ANY OF THE REVENUE FOR ANY OF OUR PROGRAMS THAT WE HAVE.HOWEVER, MOST OF THE I BELIEVE BOTH OF THEM, BOTH OF THE BYLAWS SAY THAT THE DHP 33 DOES GOVERN SOME OF THE USES AND THEN IN THE BYLAWS FOR HFC.
I THINK IT'S SPECIFIC TO HOUSING OPPORTUNITIES AND REDEVELOPMENT.
OKAY. I'M GOING TO JUMP INTO LOCATIONS.
I'M A BIG FAN OF [INAUDIBLE] AND PFC'S.
BUT I ALSO WANT TO MAKE SURE THAT THEY'RE BENEFITING THE CITY, THAT WE'RE USING IT TO ITS ORIGINAL PURPOSE AND SO WHEN YOU GIVE US A THE SLIDE ON GREEN, YELLOW AND RED, I WANT TO BE TRANSPARENT TO THOSE APPLICANTS AND LET THEM KNOW EXACTLY WHERE THEY ARE IN THE PROCESS AND SO I'M KIND OF GOING TOWARDS MORE YELLOW TO MAKE SURE THAT WE'RE NOT CHANGING THE PROCESS IN THE MIDDLE OF AN APPLICATION, MAKING SURE THAT WE'RE CLOSING OUT ANYTHING THAT'S BEFORE US AND MAKING ANY CHANGES THAT COME THEREAFTER, THE APPLICANTS KNOW EXACTLY WHAT THEY'RE GETTING INTO.
SO I'M LEANING TOWARDS YELLOW ON YOUR RECOMMENDATION THERE AND WITH THAT WE'RE GOING TO NOW GO TO NON-COMMITTEE MEMBERS WITH COUNCIL MEMBER SCHULTZ. THANK YOU, MR. CHAIR. MY COLLEAGUES REALLY ASKED TREMENDOUS QUESTIONS.
SO I'M GOING TO START WITH I'LL START WITH THE END AS CHAIR, MORENO SAID.
I MEAN, IN TERMS OF THE GREEN, YELLOW, RED.
IS IT BROKEN? IS THE SYSTEM BROKEN? THAT YELLOW OR RED NEED TO BE DEPLOYED? THAT IS VERY SUBJECTIVE QUESTION.
BUT I WOULD SAY IN TERMS OF HOW WE OPERATE, THE SYSTEM IS A LITTLE BROKEN BECAUSE WE DON'T HAVE THOSE REVIEW PROCESSES IN PLACE YET FOR HOW WE SHOULD COMPLY OR NOT.
YOU KNOW, HOW WE SHOULD MEET INITIATIVES AND THOSE THINGS.
THERE'S STILL A SEPARATION OF RESPONSIBILITIES GOING ON WITHIN MY DEPARTMENT.
BUT AS FAR AS THE OPERATION THAT'S BEEN GOING ON IN THE APPLICATION PROCESS AND HOW IT'S REVIEWED AND HOW IT COMES TO COUNCIL, THAT IS ALL STILL THE SAME AT THIS POINT. SO THEN I WOULD CERTAINLY SUPPORT WHAT CHAIR MORENO IS SAYING IN TERMS OF TAKING A LOOK, BUT NOT IMPACTING THE PEOPLE THAT ARE IN THE PROCESS.
I GUESS RIGHT NOW, I DON'T KNOW.
BUT THE OTHER QUESTION I THINK IS GOING TO WHAT CHAIR MENDELSOHN TALKED ABOUT, WHICH IS THE WHOLE MARKET RATE ISSUE AND THE BALANCE BETWEEN THE MARKET RATE AFFORDABLE AND THESE THAT ARE SET AND ANY AND ALL SUBSIDIZED.
SO WHAT I THINK WOULD BE VERY HELPFUL FOR THOSE OF US WHO HAVE A LOT OF AGING APARTMENTS THAT ARE AFFORDABLE, THEY'RE AFFORDABLE BECAUSE THEY ARE.
THE QUALITY OF LIFE THERE IS IS DEFINITELY NOT ANYTHING THAT MOST PEOPLE WOULD WANT TO LIVE IN, AND CERTAINLY IN SOME OF THE AREAS THAT I'M DEALING WITH AND YET IF THOSE APARTMENTS WERE TO GO AWAY, THEN WE HAVE TREMENDOUS DISPLACEMENT, WHICH IS WHAT I THINK THE RICHARDSON SCHOOLS ARE FACING, AND MAYBE EVEN THE PLANO SCHOOLS. AND IT'S BECAUSE OF THAT LACK OF AFFORDABLE HOUSING.
PEOPLE DON'T WANT TO LIVE IN SQUALOR IF THAT'S ALL THAT'S AVAILABLE.
SO WE MAY HAVE HUNDREDS OF UNITS AVAILABLE, BUT NOBODY WANTS TO LIVE IN THEM.
SO I THINK THAT WHOLE ANALYSIS OF THOSE GAPS AND THE QUALITY PIECE WOULD BE VERY HELPFUL BECAUSE WE WANT TO PRESERVE HOUSING AND AVOID DISPLACEMENT, BUT WE DON'T WANT TO FORCE PEOPLE TO LIVE IN THOSE IN THAT.
SO THAT STUDY, I THINK, IS HUGELY IMPORTANT AND THEN I THINK THE FINAL PIECE IS THIS THE INTERNAL PIECE THAT YOU KNOW, THE IDEA OF TAKING IT STEP BY STEP ON THE SPECIALLY IN THE TIPS IN EACH AREA, I THINK IS VERY IMPORTANT.
SOME OF THE MISTAKES WE'VE MADE AS A CITY IS, YOU KNOW, APPLYING EVERYTHING EVERYWHERE WHEN IT REALLY SHOULD BE MUCH MORE SURGICAL AND THEN I GUESS THE LAST PIECE THAT I'LL SAY, IF I MAY, MR. CHAIR, IS THE I WANT TO HAVE A DEEPER DIVE INTO THE FINANCIAL IMPACT ON OUR CITY.
WE OFTEN BRING UP WHENEVER THERE'S A CASE, WHETHER IT'S FOR HFC OR PFC.
THE IMPACT OF THAT, WHY THE 75 YEARS? WHAT'S THE IMPACT? AND I THINK THAT INFORMATION I READ THROUGH THE PRESENTATIONS, I DIDN'T SEE THAT ANSWERED AND MAYBE I MISSED IT.
[00:55:09]
IT IS THE WAY IT IS.THANK YOU. YES, I WE TOO, AGREE THAT IS IMPORTANT BECAUSE WE DO WANT TO MAKE SURE THAT THE IMPACT OF TAKING PROPERTIES OFF THE MARKET RATE IS REASONABLE, AND THAT IS WHY THE HOUSING FINANCE CORPORATION HAS ALREADY STARTED THEIR STUDY AND THEN WE WILL MOVE TO START A STUDY AND WORK WITH THE BOARD ON THE PFC SIDE.
SO IF I MAY JUST LASTLY, AND THAT IS I DON'T THINK THAT I THINK CHAIR MENDELSOHN ALLUDED TO THIS.
I APOLOGIZE IF IT WASN'T AND THAT IS THAT UNTIL WE HAVE CHAIR WEST, UNTIL WE HAVE THE DATA, WE CAN'T MAKE DECISIONS ABOUT WHAT THE BYLAWS, HOW THE STRUCTURE ALL OF THAT CAN BE.
DEPUTY MAYOR PRO TEM BAZALDUA.
OKAY. SO I'M SENSING A LOT OF CHICKEN AND THE EGG HERE.
YOU PROBABLY ARE GETTING THAT BECAUSE IT'S.
YOU'RE WANTING INFORMATION FROM US, YET WE KIND OF NEED TO KNOW.
I MEAN, SOMETIMES IT'S HELPFUL TO BE ABLE TO REACT TO THINGS BECAUSE WE'RE NOT THE EXPERTS.
WE HAVEN'T WORKED IN THIS FOR 18 YEARS, AS YOU HAVE.
OR, YOU KNOW, THERE ARE SO MANY OTHER RESOURCES.
SO I DO THINK THERE'S BENEFIT TO THIS TO AT LEAST GET SOME DISCUSSION GOING.
BUT I WOULD REALLY LIKE TO START TO SEE THAT GEL AS FAR AS WHAT THE OBSERVATION OF PRACTICE HERE, WHAT'S HOLDING US BACK, WHERE'S THE FRONTIER THAT WE NEED TO BE PURSUING? SO I THINK THAT GETTING THAT TOGETHER, I THINK WE WANT TO HEAR THAT FROM YOU, AND THEN WE CAN REACT TO THAT AS WELL.
ON AS I LOOK AT ON PAGE NINE AND THE REVENUE AND THE CASH BALANCES.
I KNOW THIS IS KIND OF A TIGHT TIMELINE HERE, BUT I JUST IT'S THE PROCESS OF ALL OF THIS THAT DRIVES ME CRAZY, AS WE KNOW THAT THERE ARE PEOPLE IN OUR COMMUNITY WHO SO DESPERATELY NEED THE HOUSING THAT PROGRAMS LIKE PFC AND ESPECIALLY HFC CAN REMEDY AND THEN FINALLY, I THINK ON PAGE TEN ON CONTROLS, UNDERSTANDING THOSE BENEFITS IS REALLY IMPORTANT BECAUSE SOMETIMES WE CAN BOG OURSELVES DOWN IN PROCESS AND SO ONE OF THE NICE THINGS ABOUT HAVING THIS SEPARATE BOARD WITH AUTONOMY IS THE AGILITY AND THEY CAN BE NIMBLE AND MOVE THINGS THROUGH PRESUMABLY.
AND SO I DON'T WANT TO HOLD THAT BACK, BUT TO IF THINGS ARE MOVING FORWARD AND THERE'S SOMETHING GOING ON THAT WOULD ULTIMATELY DIE AT COUNCIL, OR THERE'S NO ONE THERE TO BOUNCE THAT QUESTION OFF OF TO REDIRECT IT OR COURSE CORRECT OR WHATEVER YOU WANT TO CALL IT.
AND I'D LIKE TO HEAR FROM OUR HFC MEMBERS AS WELL.
I MEAN, YOU KNOW, WHERE COULD THAT HAPPEN? HAVE THEY SEEN SOMETHING GO DOWN A PROCESS AND THEN GET HALTED FOR SOMETHING THAT COULD HAVE BEEN FIXED IN THAT BOARDROOM IF THERE HAD BEEN A VOICE THERE, EX-OFFICIO OR OTHERWISE? AND THEN FINALLY, ON THE ROLE OF THE CITY ATTORNEY'S OFFICE VERSUS OUTSIDE COUNSEL.
I MEAN, I LOOK AT THAT AND I JUST SEE CONFLICT IS THERE BECAUSE THAT PERSON REPRESENTS US AND ADVISES COUNSEL AS WELL AND SO I'D LOVE TO HAVE A POV FROM THAT OFFICE AND FROM YOU ALL ON WHAT THE CONCERNS MIGHT BE AND AGAIN, FROM OUR BOARD, THE DHFC BOARD AND THE PFC BOARD.
SO YOU KNOW, I THINK HAVING ALL THOSE VOICES SHARE ALL THE POSSIBILITIES OF THE GOOD AND THE BAD SO WE CAN LAND ON THE BEST DECISION WE CAN MAKE IS REALLY CRITICAL. THANK YOU AND IF I MAY JUST SPEAK TO THAT A SECOND.
SO I WANTED THIS PRESENTATION TO GO FIRST ONLY BECAUSE I LIKE WHERE YOU'RE GOING WITH YOUR QUESTIONS AND COMMENTS BACK TO ME ABOUT NEEDING MORE INFORMATION, WANTING MORE INFORMATION.
THE REST OF THE PRESENTATIONS THAT YOU'RE GOING TO GET TODAY WILL HELP WITH SOME OF YOUR QUESTIONS THAT YOU HAVE RIGHT NOW WITH MY QUESTIONS, AND HELP US THINK THROUGH THE BEST WAY TO SET UP OUR CORPORATIONS AND MOVING FORWARD.
SO THANK YOU SO MUCH FOR YOUR FEEDBACK.
THANK YOU. COUNCIL MEMBER WILLIS, CHAIR WEST.
SO I WANT TO JUMP INTO THE BACK TO THE RED YELLOW GREEN SITUATION FOR A SECOND.
[01:00:03]
I KNOW WE'RE COMING UP ON OUR LOW INCOME HOUSING TAX CREDIT LIFE TECH CYCLE.HOW RELIANT ARE THE LIGHT TECH PROJECTS FOR NEXT YEAR ON EITHER OF THESE TWO PROGRAMS, THE PFC OR HFC? SO OUR 9% LIGHT TECH PROCESS IS COMING UP IN JANUARY, AND THAT PROCESS IS A PRETTY LONG PROCESS.
SO IT DOESN'T START TILL AFTER WE SUBMIT RESOLUTIONS OF SUPPORT, OR THEY SUBMIT THE DEVELOPER SUBMIT RESOLUTIONS OF SUPPORT TO THE STATE.
THAT'S WHAT WE ARE APPROVING OR DISCUSSING AT THE BEGINNING OF 2025.
THEY STILL HAVE TO GO THROUGH AN ENTIRE APPLICATION PROCESS, BUT THAT RESOLUTION OF SUPPORT DOESN'T SPEAK TO SPECIFICS WITH WHETHER OR NOT THEY'RE GOING TO USE HFC, WHETHER OR NOT THEY'RE GOING TO USE PFC.
IT IS A GENERAL RESOLUTION OF SUPPORT, BUT FOR TIMING ISSUES, IF SOMEONE'S CONSIDERING FILING FOR APPLICATION IN JANUARY, ISN'T IT? COULDN'T US BEING IN YELLOW OR CERTAINLY IN RED, PROHIBIT US FROM SEEING SOME OF THESE DEALS COME FORWARD? IT COULD. YES.
YEAH. THEN THAT'S WHY I GO BACK TO STICKING WITH GREEN.
LIKE WHY TECH IS SUCH AN IMPORTANT TOOL FOR OUR LOWER INCOME LEVELS.
I WOULD HATE FOR US TO HARM THAT CYCLE AND MISS AN ENTIRE YEAR OF TECH DEVELOPMENT BECAUSE WE'RE WORKING THROUGH SOME BYLAWS FOR THESE TWO CORPORATIONS AND THEN NOW I'M GOING TO JUMP, CYNTHIA, TO JUST A REALLY POINTED QUESTION FOR YOU.
IF YOU'RE COMFORTABLE ANSWERING IT AT THIS POINT YOU'VE REALLY ANSWERED SOME GREAT QUESTIONS ABOUT MY COLLEAGUES, BUT WHAT DO YOU FEEL IS AND IS NOT WORKING IN THESE PROGRAMS? AND HOW CAN WE BETTER ADDRESS IT? SO I FEEL WHAT IS WORKING IS THAT THEY ARE SERVING THE POPULATIONS THAT THEY WERE INTENDED TO SERVE.
THEY ARE DOING THE WORK THAT WE ASKED FOR THEM TO DO.
AS CORPORATIONS OF HFC AND CFC, WHAT ISN'T WORKING FOR ME IS THAT WHEN WE PRESENT THESE AT COUNCIL LEVEL, WE GET A LOT OF SCRUTINY ON WHETHER OR NOT THEY SHOULD MOVE FORWARD OR IF THEY'RE REALLY DOING WHAT WE NEED THEM TO DO AND THAT'S BECAUSE, AGAIN, WE DON'T HAVE THE STRUCTURE IN PLACE TO BE ABLE TO ANSWER THE QUESTIONS THAT COME TO US AT THE COUNCIL HORSESHOE, WHERE, YOU KNOW, IT HAS TO DO WITH MY TEAM REVIEWING PROJECTS AND HAVING A LOT OF INFORMATION TO PRESENT FOR THAT, BECAUSE, AGAIN, WE ARE NOT IN THE PROCESS OF PROJECT REVIEW.
WE DON'T HAVE THOSE DETAILS, AND THOSE ARE THE KINDS OF THINGS THAT DON'T WORK REALLY WELL FOR MY DEPARTMENT, BECAUSE WE DON'T HAVE THOSE ANSWERS ALL THE TIME, AND WE HAVE TO RELY ON THE BOARDS WHICH ARE NOT AT THE MEETINGS TO APPROVE OR DENY THESE PROJECTS.
WE ALSO WANT TO LOOK AT WHERE THEY'RE GOING.
THEY'RE THE PROJECTS ARE ALL OVER THE CITY, AND SOMETIMES IT WORKS REALLY WELL FOR WHAT NEEDS TO BE THERE, BUT SOMETIMES IT IS AFFECTING SOMETHING ELSE THAT IS TRYING TO HAPPEN, LIKE A TIF, LIKE A HIGH OPPORTUNITY AREA THAT MAY NOT NEED PFC.
BUT WE'RE NOT GETTING THEM IN THE AREAS WE DO NEED, SUCH AS IN THE SOUTHERN SECTOR, WHERE WE NEED A BALANCE OF MARKET RATE UNITS AND HIGHER INCOME RENTAL TO HELP WITH OPPORTUNITIES FOR PEOPLE WHO WANT TO STAY IN THOSE AREAS BUT CAN'T FIND ANYWHERE TO LIVE THAT'S DECENT.
IT'S EVERYTHING THAT WE'VE TALKED ABOUT THAT MAKE IT DIFFICULT FOR MY TEAM TO MOVE FORWARD ON WHAT WE DO OR SHOULDN'T DO, BECAUSE WE REALLY DO NEED BETTER PARAMETERS AROUND WHAT WE'RE DOING.
I APPRECIATE THAT DETAILED ANSWER.
SO I AGREE WITH WHAT CHAIRMAN MENDELSOHN WAS SAYING, THAT STAFF PLAYS SUCH AN IMPORTANT ROLE IN MAKING SURE THAT ALL THE POLICIES OF THE CITY ARE FOLLOWED AND THAT YOUR PEOPLE ARE THINKING ABOUT THAT WHEN THEY'RE MAKING THESE DECISIONS, BECAUSE THE BOARD'S IN AN INSULAR LEVEL.
REALLY JUST LOOK AT IF ONE DEAL PENCILS OUT OR NOT.
YOU GUYS HAVE THE FULL PICTURE.
BUT I THINK ON THE BALANCE SIDE OF THAT IS I DON'T WANT THIS TO BE LIKE OUR OLD HOUSING POLICY TASK FORCE, WHERE THESE BOARDS ARE JUST A RUBBER STAMP OF WHAT CITY STAFF WANTS. NO OFFENSE. I THINK THERE'S A VALUE TO THEM HAVING SOME AUTONOMY.
[01:05:01]
FOR ME, THAT WOULD BE THE WAY TO GO.NOT STAFF DIRECTING THE BOARD AND BASICALLY THE BOARD JUST APPROVING WHAT STAFF GIVES THEM.
THANK YOU. FIRST, I WANT TO ACKNOWLEDGE THE CHAIR.
KEITH MCCALL STANDING UP THERE.
SAY HI TO YOU. THANK YOU VERY MUCH.
I ACTUALLY WAS ON THE AGENDA TO MAKE A STATEMENT.
I JUST HAVEN'T BEEN RECOGNIZED YET.
WELL, I AM ACKNOWLEDGING YOU NOW, SO YOU CAN ACTUALLY USE MY TIME FOR THAT.
CHAIR. I'M SORRY. THANK YOU VERY MUCH, I APPRECIATE IT.
FORMER PRESIDENT OF THE PFC WHO I FOLLOWED.
CHAIR. THIS IS JUST A SHORT STATEMENT THAT I PREPARED SINCE I WAS ON THE AGENDA FOR ITEM NUMBER A.
I CANNOT BE PROUDER OF THE DEDICATION OF THE CURRENT STAFF.
THEIR PASSION AND COMMITMENT TO HOUSING IS SHOWN THROUGH THEIR OUTSTANDING COMMITMENT TO THIS CITY.
HOPEFULLY, WHAT THE HFC HAS DONE AND NOW WITH THE PFC IS BEGINNING TO DO, WILL HELP US RETAIN TOP NOTCH INDIVIDUALS FOR THE BENEFIT OF THE CITY AND THE CITIZENS OF DALLAS.
AS NOTED IN DIRECTOR ROGERS ERICKSON'S PRESENTATION ON PAGE SEVEN.
DALLAS PUBLIC FACILITIES CORPORATION HAS $2,000,090 AND $853 IN REVENUE IN FISCAL YEAR 2024.
WE APPROVED 19 DEVELOPMENTS IN THREE YEARS, BUT ONLY 13 ARE STILL PROCEEDING AND A CASH BALANCE ON HAND AS OF AUGUST 31ST, 2024 OF $3.8 MILLION.
THE BOARD HAS BEEN A STRONG ADVOCATE FOR THE CITIZENS OF OUR CITY, AND WE'RE DOING ALL WE CAN TO CONTRIBUTE TO ACHIEVING THE GOALS AND THE MISSION OF THE DPC AND AS AN UPDATE TO OUR AUGUST MEETING OUR GOVERNANCE COMMITTEE PASSED CHANGES TO OUR BYLAWS, AND THOSE CHANGES WERE APPROVED AT OUR OCTOBER 22ND, 2024 BOARD MEETING.
A COUPLE OF THE CHANGES IN THE BYLAWS THAT WE HAVE SUBMITTED INCLUDE ONE.
MODIFYING THE TERM LENGTH OF THE CURRENT SIX YEAR TERM TO A TWO YEAR TERM TO CORRESPOND WITH COUNCIL TERMS. IF THERE IS A CHANGE AT THE BALLOT BOX, ESPECIALLY THIS TIME OF YEAR, AS WE ALL KNOW, WE WANT TO MAKE SURE THAT THE BOARD REFLECTS THAT CHANGE AND TWO PROJECTS ON WHICH THE BOARD CAN SPEND FUNDS.
THE CURRENT BYLAWS ARE LIMITING AND AS WE'VE SPOKEN ON THIS BEFORE, AS CYNTHIA HAS MENTIONED, IF WE CAN EXPAND THAT REACH TO INCLUDE AREAS THAT MIGHT INCLUDE AND THIS IS JUST AN EXAMPLE.
SINGLE FAMILY HOME AND ROOF REPAIR.
MY HOPE IS THAT THIS PROCESS TO UPDATE THE BYLAWS WILL NOT SLOW THE DEVELOPMENT TIMELINE.
IT IS HARD ENOUGH TO GET A DEAL COMPLETED FROM INCEPTION TO CLOSING, AND ANY SLOWDOWN IN THE PROCESS MAY CONTRIBUTE TO OUR FELLOW CITIZENS OF DALLAS THINK WE MIGHT BE SIDETRACKING MEETING OUR HOUSING GOALS.
JUST THE OTHER DAY, THE MORNING NEWS REPORTED THAT THE UNITED STATES CENSUS.
THANK YOU SIR. APPRECIATE YOUR TIME.
OH, OKAY. WELL, I HAD ANOTHER COUPLE OF PARAGRAPHS HERE.
ALRIGHT. IF WE COME BACK TO ANOTHER ROUND, SOMEONE MIGHT LET YOU USE THEIR TIME.
WE'RE GOING TO GO AHEAD AND GO TO COUNCILWOMAN MENDELSOHN.
VERY GOOD. SO SHOULD I SIT DOWN? OKAY. YES.
HAVE YOU CONSIDERED WHAT THE COST WOULD BE THAT YOU FIND REASONABLE FOR THE DEVELOPMENT OF A SINGLE UNIT OF AFFORDABLE HOUSING? THAT MEANS EITHER TAX ABATEMENT OR REVENUE FOREGONE.
I'M SORRY, REVENUE FOREGONE OR ACTUAL DOLLAR SPENT.
LIKE, WHAT DO YOU THINK IS A REASONABLE NUMBER TO DEVELOP A SINGLE UNIT OF AFFORDABLE HOUSING? SO I WOULD SAY OUR AVERAGE NUMBER IS AROUND $60,000 PER UNIT, WHETHER IT BE RENTAL OR WHETHER IT BE HOME OWNERSHIP AND THAT NUMBER IS THE NUMBER THAT WE GO TO, BECAUSE WE CAN GET MORE OUT OF THE DOLLARS THAT WE HAVE IN CASH WHEN WE USE THAT AMOUNT OF ASSISTANCE AND THEN IT ALSO HELPS US PUSH OUR PARTNERS TO GET MORE, MONEY FROM THE PRIVATE SECTOR AND FROM FOUNDATIONS AND FROM OTHER ENTITIES THAT WANT TO SUPPORT AFFORDABLE HOUSING.
BUT THAT'S THE NUMBER THAT WE USUALLY LAND ON AS REASONABLE FOR SUBSIDY.
[01:10:04]
SO, CYNTHIA, YOU'VE BEEN THROUGH MANY YEARS OF HUD AUDITS AND DIFFICULT COMPLIANCE ISSUES AND FINANCIAL QUESTIONS.DO YOU THINK MORE OVERSIGHT OF THE PFC AND POSSIBLY HFC ARE NEEDED? YES, I AGREE.
WHEN LOOKING AT DEVELOPERS OF THE AFFORDABLE HOUSING PROJECTS THAT HAVE COME THROUGH THE PFC, HOW COME OUR TOP DEVELOPMENT GROUPS IN OUR CITY HAVE NOT BEEN UTILIZING THIS TOOL? I CAN'T ANSWER THAT.
COUNCILWOMAN I DON'T KNOW THE REASONS WHY THAT HASN'T HAPPENED.
I REALLY CAN'T ANSWER THAT, I DON'T KNOW.
IF THEY ARE THE TOP PRODUCERS, THEY HAVE MONEY AND THEY CAN DO SOME OF THIS.
HAVE WE ALLOWED TOO MUCH AUTONOMY OF THE PFC AND NOT ENOUGH OVERSIGHT BY EITHER CITY STAFF OR CITY COUNCIL? I DON'T, I WOULDN'T SAY IT'S ENOUGH AUTONOMY BECAUSE I WOULD SAY THAT THEY HAVE AUTONOMY AND THEY DO USE IT TO AN EXTENT THAT THEY'RE COMFORTABLE WITH WHAT I DON'T SEE IS CITY STAFF BEING SEPARATED FROM BEING PART OF THAT AUTONOMY AND MAKING DECISIONS ON BEHALF OF THE CITY THAT WOULD SUPPORT OUR INITIATIVES.
THERE HASN'T BEEN THAT SEPARATION.
OKAY. WELL, I BELIEVE THAT MORE TRANSPARENCY IS NEEDED, AND CERTAINLY I'M CONCERNED AND INTERESTED IN WHAT THE FINANCIAL CONTROLS HAVE BEEN. THE REVENUE THAT IS BEING GENERATED.
SO THERE'S A DISCUSSION I THINK CHAIR MORENO BROUGHT UP ABOUT.
COULD IT BE USED FOR VARIOUS RESOURCES OR INITIATIVES AND SO THIS INCLUDES HOMELESSNESS.
850% AND BELOW AMI FOR RENTAL AND HOME OWNERSHIP.
WHAT ABOUT FOR USING IT FOR HOMELESS PREVENTION FOR RENT AND UTILITY SUBSIDIES? I WOULD HAVE TO LOOK AT HOW THAT HAS BEEN MANAGED, I WILL SAY IN THE PAST, FOR HOUSING DEPARTMENT TO MANAGE A RENTAL PROGRAM IS VERY DIFFICULT BECAUSE WE DON'T HAVE THE SOCIAL SERVICE PIECE THAT IT TAKES TO DO THAT, AND IT IS A MORE LONG TERM PARTNERSHIP WITH THE RENTER AND SO HOUSING DEPARTMENT IS NOT SET UP TO DO RENTAL ASSISTANCE LONG TERM LIKE THAT.
SO TYPICALLY HOMELESS PREVENTION ISN'T LONG TERM.
IT WOULD MAYBE HAVE A THREE MONTH LOOK BACK AND A THREE MONTH LOOK AHEAD.
BUT WE'RE MISSING WE'RE COMPLETELY MISSING THAT OPPORTUNITY TO KEEP PEOPLE STABILIZED AND NOT FALL INTO HOMELESSNESS AND I, YOU KNOW, LOOK AT ALL THAT MONEY AND I THINK THAT WOULD BE A REALLY, GOOD USE OF DOLLARS.
SO, CHAIR, I WOULD BE VERY INTERESTED IN HAVING SOME KIND OF PROGRAM LIKE THAT EXPLORED.
HAS THERE BEEN CONSIDERATION OF OUR OTHER TAXING ENTITIES THAT ARE IMPACTED WHEN WE DO AN EXEMPTION FOR A PSC? I HAVEN'T SEEN ANY CONSIDERATION FOR THAT.
WE'RE ALL AWARE OF THE CHALLENGES THAT OUR SCHOOL DISTRICTS ARE FACING.
I REGULARLY HEAR FROM PLANO ISD ABOUT CONCERNS FOR FCS AND YOU KNOW, RICHARDSON ISD HAS ITS OWN FINANCIAL CHALLENGES. THE ISD SAME.
SO I'M JUST WONDERING IF WE'VE HAD THAT CONVERSATION AND IF WE NEED TO HAVE THAT CONVERSATION.
THIS IS A LOT OF MONEY TO THEM, MORE THAN IT IS TO US.
SO I WOULD LIKE TO MAKE SURE WE ADD THAT IN.
MY NEXT ITEM IS ABOUT THE ROLE OF THE CITY ATTORNEY.
I DON'T UNDERSTAND WHY OUR CITY ATTORNEY IS NOT INVOLVED.
THEY'RE INTENDED TO PROTECT OUR CITY AND OUR RESIDENTS, AND THESE DEALS SHOULD BE STRUCTURED TO DO SO, NOT OUTSIDE COUNSEL WHO MAY HAVE A MANDATE OF PROTECTING THE DEAL, LIKE YOUR JOB IS TO GET THE DEAL THROUGH, AND WE NEED OUR CITY ATTORNEY INVOLVED.
[01:15:06]
THOSE ITEMS. BUT IF YOU WANT TO GO AHEAD AND RESPOND.MY ONLY RESPONSE WAS IS GOING TO BE THE CITY ATTORNEY'S OFFICE IS GOING TO DO A PRESENTATION TO YOU REGARDING THEIR ROLE IN PFC AND HFC DECISION PROJECT MAKING AND THEY'LL BE ABLE TO GIVE YOU THE RESPONSE YOU NEED.
ALL RIGHT AND I'M GOING TO GIVE THE REST OF MY TIME ON THESE THREE MINUTES TO KEVIN, IF YOU WANT TO COME BACK UP AND CONCLUDE YOUR REMARKS, WE EXCUSE ME, WE DON'T HAVE A PUBLIC SPEAKING PORTION ON THIS ITEM, SO IT HAS TO BE ON OUR TIME.
THANK YOU VERY MUCH, I APPRECIATE IT.
MY HOPE IS THAT THE BYLAWS WILL NOT SLOW THE DEVELOPMENT TIMELINE.
IT'S HARD ENOUGH TO GET A BILL COMPLETED FROM INCEPTION TO CLOSING, AND ANY SLOWDOWN IN THE PROCESS MAY CONTRIBUTE TO OUR FELLOW CITIZENS OF DALLAS THINK WE MIGHT BE SIDETRACKING MEETING OUR HOUSING GOALS.
SO WE CLEARLY HAVE A CRISIS TO ADDRESS AND NOT PUT OUR PROCESS ON THE SIDELINE.
I APPRECIATE ALL THE HHC IS DOING FOR OUR CITY, AND WOULD LIKE TO RESPECTFULLY REQUEST THAT BEFORE ANY HOLD IS ENACTED, THAT OUR BOARD HAS A CHANCE TO HAVE A CONVERSATION WITH THE COUNCIL MEMBER WHO APPOINTED US.
I WANT TO NOTE THAT NONE OF THE CHANGES BEING DISCUSSED TODAY LIKELY.
THE HOLDS HAVE BEEN DISCUSSED WITH OUR BOARD.
SO I THINK WE REALLY OWE IT TO OUR BOARD AND Y'ALL TO YOUR APPOINTEES.
WE HAVE A CHANCE TO DISCUSS THIS AT A MEETING.
AND IT WOULD, BECAUSE IT WOULD ADVISE CAUTION WHEN REVIEWING OPTIONS TO CHANGE IT.
ADDING ONE MORE BUCKET THE DEVELOPMENT WOULD HAVE TO REACH OUT TO FILL A FUNDING GAP WOULD LIKELY MEAN LESS PROJECTS TO BENEFIT THE CITIZENS OF DALLAS AND ITS HOUSING CRISIS. IN CLOSING, I'D LIKE TO TAKE A MOMENT TO FORMALLY THANK MY FELLOW BOARD MEMBERS.
AS YOU DO KNOW, WE TRY TO DO EVERYTHING WE CAN AND WE'RE ALL VOLUNTEERS.
SO THANK YOU VERY MUCH AND ONCE AGAIN, I APPRECIATE CHAIR MORENO.
THANK YOU FOR GIVING ME SOME EXTRA TIME.
CYNTHIA, CAN YOU TALK A LITTLE BIT ABOUT OVERSIGHT AND WHAT YOUR DEPARTMENT DOES TO ENSURE THAT THE PFCS AND HFCS ARE ACTUALLY PROVIDING THE APARTMENTS AT THE 60% RATE OR WHATEVER RATE WAS AGREED ON.
HOW DO WE ENSURE THAT THOSE APARTMENTS ARE BEING ACTUALLY OCCUPIED? SO CURRENTLY, MY COMPLIANCE TEAM THAT OVERSEES OUR FEDERAL PROGRAMS AND OUR MIHD ACTIVITIES IS HAS STEPPED IN TO ASSIST US WITH LOOKING AT ALL OF THE EXISTING PROPERTIES THAT ARE ON THE GROUND AND THEY'RE DOING A REVIEW OF THE REQUIREMENTS FOR AFFORDABILITY.
SO WHEN WE'RE APPROVING APARTMENT UNITS, WHETHER IT BE A ONE BEDROOM, TWO BEDROOM AT A CERTAIN PRICE, DOES THAT PRICE IS IT LOCKED IN OR DOES IT FLUCTUATE AND GO UP AS THE MONTHS OR YEARS GO BY? SO OUR RENTS TYPICALLY FLUCTUATE.
THEY GO UP AS THE MARKET CHANGES.
SO THEY THEY DO ADJUST FOR MARKET CHANGE.
OKAY. AND THEN AGAIN JUST MAKING SURE THAT THESE UNITS ARE BEING USED BY INDIVIDUALS THAT HAVE THE NEED IF THOSE UNITS GO UNOCCUPIED, IS THERE ANY REPERCUSSIONS TO THE PFCS OR HFCS? THERE IS.
SO IF THEY DON'T MEET OUR AFFORDABILITY TERMS WE DEFAULT THEM BECAUSE THAT IS A DEFAULT IN THEIR CONTRACT AND THE DEVELOPERS THEN HAVE TO REMEDY THE ISSUE AND PROVIDE US THOSE THE RENTERS FOR THOSE PURPOSES.
THANK YOU, COUNCILWOMAN SCHULTZ.
ALL RIGHT. ALL RIGHT. WE'RE GOING TO.
WHY WOULDN'T THE PFC AND HFC? WHY WOULDN'T THAT BE THEIR EXPENSE? AND TO REPORT TO YOU, THAT WOULD BE IF THEY HAD STAFF.
[01:20:09]
I'VE HAD ASKED MY TEAM TO STEP IN AND DO THAT.BUT IN THE FUTURE, WHAT WE WILL DO IS THE TEAM THAT I'M BUILDING TO OVERSEE FOR CITY PURPOSES, HFC AND PFC. THEY WILL DO RISK MONITORING, WHICH IS WHAT WE DO ON OUR FEDERAL SIDE.
WE WORK WITH THE DEVELOPERS TO MAKE SURE THEY FULFILL THE UNIT COUNTS AND OCCUPANCY, AND THEN WE PUT THEM ON A RISK BASED REVIEW AS WE MOVE FORWARD.
SO MY TEAM IS BEING CREATED TO DO THAT FOR THE PFC AND HFC.
OKAY. WELL, GOOD TO KNOW THAT STEP IS HAPPENING IN THE PROCESS.
A LITTLE ODD THAT IT GOT TO THIS POINT.
I'M GLAD YOU'RE DOING IT. ARE WE BEING RECOMPENSED FOR THIS? YES WE ARE.
CHAIR. ALL RIGHT. I'LL DO RAPID FIRE HERE.
AGREE WITH YOU, CYNTHIA, ON HOW THE REVENUES ARE USED FOR OUR GREATEST NEED.
I THINK IT SHOULD BE REEVALUATED EVERY COUPLE OF YEARS BY, YOU KNOW, EITHER THIS COMMITTEE OR COUNCIL, BUT I THINK 30% AMI 60% AMI AND BELOW. HOMEOWNERSHIP.
WHY IS THAT? WHY WOULD WE WANT TO TAKE THAT OUT? I'M SORRY. I HAVE NO IDEA WHAT THAT IS.
CAN SOMEBODY ANSWER THAT? WHY WOULD WE? DID I MISS THAT WHEN YOU SPOKE ABOUT THAT? CHAIR, THAT'S GOING TO BE ON YOUR TIME.
OKAY, WELL, I'LL FOLLOW UP ON THAT.
I JUST DON'T LIKE I DON'T LIKE THAT PARTICULAR ISSUE AND THEN I WOULD SAY ALSO ON THE PFC DEALS.
ANYTIME WE HAVE A VERSION OF EXISTING HOUSING STOCK THAT'S ALREADY ON THE MARKET AS A TAX ROLLS AS UNITS, MARKET RATE UNITS TO AFFORDABILITY UNDER THE PFCS AND TAKEN OFF THE TAX ROLLS.
I'D LIKE TO SEE MORE SCRUTINY FOR THAT FOR THOSE DEALS.
AT SOME POINT. THANK YOU. YES, SIR.
ALL RIGHT AND I'LL JUST DO THIS AND IF YOU DON'T HAVE THE ANSWER, THAT'S FINE, BUT I WANT TO SEE IT.
WHAT ARE THE CURRENT USES OF REVENUE? AS STATED IN THE POLICIES FOR BOTH THE PUBLIC FACILITIES CORPORATION AND THE DH DALLAS HOUSING? THEY ARE NOT SPECIFIED.
IT MERELY SAYS UNDER THE PFC THAT THE USES WILL BE AS THE DHP 33 DICTATES AND UNDER HFC IT IS GENERAL USES FOR HOUSING.
OKAY AND HFC HAS BEEN AROUND A LITTLE BIT LONGER.
HAVE THEY USED THOSE REVENUES FOR ANYTHING? OKAY. NO, SIR. ALL RIGHT. PERFECT AND THEN WHERE AM I? OH, I THINK I ASKED ABOUT THE MAPS.
THE OTHER QUESTION I WANTED TO ADD TO THAT AS A LAYER OF DATA IS IN TERMS OF THE NUMBER OF APPLICATIONS THAT YOU'VE RECEIVED FOR EACH COMPARED TO THOSE THAT HAVE NOT BEEN APPROVED AND WHERE THOSE LOCATIONS WERE, AND MAYBE SOME GENERAL EXPLANATIONS AS TO WHY THEY WEREN'T APPROVED.
YES, SIR. FROM THERE AND THEN YEAH AND THEN OVERLAYING THAT WITH THE MAP.
WHEN THERE'S A CONSIDERATION OF TAKING A PROPERTY OFF THE TAX ROLLS, IS THERE ANY COORDINATION WITH THE BUDGET OFFICE ON THAT? I WOULD HAVE TO ASK AARON WHAT THAT PROCESS LOOKS LIKE.
I THINK THAT'S INVOLVED IN THE COUNCIL AGENDA APPROVAL ITEM.
THEY VERIFY THE CALCULATIONS ONTO HOW MUCH TAXES ARE FOREGONE.
RIGHT. BUT IF WE ARE APPROVING 6, 8, 10 PFC AND HFC DEALS IN A YEAR, THAT'S VERY SIGNIFICANT REVENUE TO THE CITY AND NEEDS TO BE CONSIDERED IN PROJECTED BUDGETS.
CERTAINLY. BUT IS IT? I GUESS I NEED YOU TO ARTICULATE THE QUESTION A LITTLE MORE.
[01:25:09]
YEAH. NO, THEY ARE NOT.YEAH. SO LIKE, I'D LOVE TO SEE SOME SORT OF DEVELOPMENT OF A CHECKLIST.
LIKE WE'VE TALKED TO THE BUDGET OFFICE, AND THEY AGREE THAT WE CAN FORGO ANOTHER $200,000 A YEAR IN PROPERTY TAXES FOR THIS PROPERTY, IN ADDITION TO WHAT IS ALREADY ACCUMULATED, AND PERHAPS SHARING THAT ACCUMULATION WOULD HELP INFORM THE COUNCIL OF WHAT THE CONSEQUENCES OF THEIR DECISION IS, AS OPPOSED TO EACH ONE OFF, WHERE, AGAIN, THERE'S NOBODY ON THE COUNCIL THAT DOESN'T WANT TO SUPPORT THE DEVELOPMENT OF AFFORDABLE HOUSING.
CYNTHIA, THANK YOU AND YOUR TEAM FOR THIS PRESENTATION.
I'M GOING TO ASK MY COLLEAGUES WHO EITHER DIDN'T HAVE TIME TO HAVE ALL THEIR ANSWERS ADDRESSED TO FOLLOW UP WITH YOU DIRECTLY AND THEN I'LL JUST CLOSE WITH THIS. I'VE TALKED TO DIFFERENT COUNCIL MEMBERS THROUGHOUT TEXAS AND WE'RE REALLY POSITIONED UNIQUELY HERE IN DALLAS AND DO HAVE AN OPPORTUNITY TO HAVE SOME OVERSIGHT AND GUIDANCE AND I WANT TO MAKE SURE THAT WE USE THAT TO THE BEST OF OUR ABILITY AND SO LOOK FORWARD TO CONTINUING THE CONVERSATION AND JUST AGAIN, THANK YOU FOR THAT PRESENTATION.
HERE WE GO AND DO YOU WANT TO GO AHEAD AND TEST YOUR MICROPHONE? SO FAR, WE CAN'T HEAR YOU.
ALL RIGHT. CAN EVERYONE HEAR ME? YES. AND IF YOU COULD JUST.
IS THIS BETTER? NO, IT MIGHT ACTUALLY BE WORSE.
IS THERE ANYTHING THAT WE CAN DO TO AMPLIFY THAT SOUND? IT REQUIRED ME TO DIAL IN ON MY PHONE, SO I APOLOGIZE.
I'LL USE MY PHONE AS A MICROPHONE HERE, IF THAT'S HELPFUL.
IT'S A LITTLE BIT BETTER. YES.
EXCELLENT. JUST PLEASE SHOUT IF I CAN'T BE HEARD.
I'M THE DIRECTOR OF BOND FINANCE AT THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS.
THANK YOU FOR MAKING TIME FOR US ON YOUR AGENDA.
I'VE PROVIDED QUITE A BIT OF BACKGROUND INFORMATION IN MY PRESENTATION, GOING ALL THE WAY BACK TO THE TAX REFORM ACT OF 1986. SO WE WON'T SPEND A LOT OF TIME ON THAT HERE, BUT IT'S REALLY INTENDED TO GIVE YOU SOME BACKGROUND ON VOLUME CAP HOW IT IS ALLOCATED AND THE APPLICABLE TEXAS CODE ASSOCIATED WITH THE VOLUME CAP ASSIGNMENTS.
AS YOU CAN SEE ON SLIDE TWO HERE 1.2 BILLION OF THE STATE'S VOLUME CAP IS ALLOCATED TO MORTGAGE REVENUE BONDS, WHICH IS ESSENTIALLY SINGLE FAMILY HOUSING.
WE MOVE TO SLIDE TWO VERY QUICKLY.
THAT 1.2 BILLION IS DIVIDED BETWEEN TBCA AND LOCAL HFCS.
TBCA WE GET ABOUT 409 MILLION LOCAL AGENCIES RECEIVED JUST UNDER 700 MILLION AND THAT'S ALL INTENDED TO PROMOTE SINGLE FAMILY HOME OWNERSHIP THROUGHOUT THE STATE.
SLIDE FOUR AND BASICALLY JUST OUTLINES THE APPLICABLE TEXAS CODE.
REALLY WHAT IS HAPPENING? LOCAL AGENCY VOLUME CAP IS ASSIGNMENTS TO TBCA HAVE REALLY BECOME THE LIFEBLOOD OF THE WORK THAT WE DO HERE.
[01:30:05]
TEXAS AND ASSIGNED TO LOCAL AGENCIES SUCH AS DALLAS ARE ACTUALLY USED TO PROMOTE SINGLE FAMILY HOME OWNERSHIP EXACTLY WHERE THEY WERE INTENDED TO BE USED.SO SINCE THE BEGINNING OF 2022 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, WE'VE ISSUED ABOUT $2.2 BILLION IN MORTGAGE REVENUE BONDS TO MAKE FUNDS AVAILABLE FOR BELOW MARKET MORTGAGE LOANS FOR LOW AND MODERATE INCOME, FIRST TIME BUYERS AND VETERANS ACROSS THE STATE OF TEXAS.
OBVIOUSLY, WHEN WE LOOK AT THE 409 MILLION, UP FROM 387 MILLION LAST YEAR IN VOLUME CAP, YOU CAN SEE WE HAVE A LITTLE BIT OF A DEFICIT, RIGHT? WE GET ABOUT 800 MILLION IN VOLUME CAP OVER THE LAST COUPLE OF YEARS.
CALL IT 1.2 OVER THE LAST THREE.
AND WE'VE ISSUED 2.2 BILLION IN BONDS.
SO THAT'S THAT SHOWS THE IMPORTANCE OF THE VOLUME CAP ASSIGNMENTS THAT WE GET FROM THE LOCAL HFCS.
YOU KNOW, WE'VE THIS YEAR, WE'RE LOOKING AT ROUGHLY 450 MILLION BEING ASSIGNED FROM ABOUT 15 LOCAL HFCS ACROSS THE STATE.
AND THOSE ARE SO IMPORTANT TO ENSURE THAT WE CAN CONTINUE TO HAVE OUR PROGRAMS AVAILABLE.
TDHCA WILL NOT TAKE A VOLUME CAP ASSIGNMENT FROM A LOCAL HFC UNLESS WE FIRMLY BELIEVE THAT WE WILL BE ABLE TO LEND THAT FULL AMOUNT BACK INTO THAT HFC JURISDICTION.
SO LET'S MOVE ON TO SLIDE SEVEN, PLEASE.
SO IF WE LOOK AT DALLAS, FOR EXAMPLE, OVER THE LAST TWO YEARS, 22 AND 23, THE CITY OF DALLAS.
HSC HAS ASSIGNED 86 MILLION IN VOLUME CAP TO TDHCA.
WITH THAT FUNDING TDA HAS MADE JUST UNDER 86 MILLION IN LOANS AS OF AUGUST 31ST. THAT NUMBER IS HIGHER NOW AND YOU KNOW THAT REALLY SPEAKS TO US REALLY TRYING TO TIE THAT PRODUCTION AND THAT VOLUME CAP TO THE PRODUCTION THAT WE WILL, THAT WE INTEND TO USE IN DALLAS.
SO IF WE COULD MOVE TO SLIDE SEVEN, I JUST WANT TO GO THROUGH THESE REALLY QUICKLY AND LOOKING AT WHERE THOSE DOLLARS ARE GOING IN THE CITY.
MOVING TO SLIDE NINE, WE CAN WE SHOW THE DEMOGRAPHIC BREAKDOWN OF WHERE THOSE THE FAMILIES THAT ARE BORROWING THOSE FUNDS AND OWNING HOMES FOR THE FIRST TIME.
YOU CAN SEE THE HOUSEHOLD INCOME BREAKDOWN AND, YOU KNOW, WE PROVIDE THIS REPORTING ON A QUARTERLY BASIS AND WE ARE WORKING ON ENHANCING THIS REPORTING, MAKING IT MORE BOARD, MORE OF A BOARD USE BOARD FRIENDLY SYNOPSIS AND WE CAN KIND OF JUST GO BACK TO SLIDE SIX, AND I'M GOING TO KIND OF FINISH MY COMMENTS, AND I DON'T WANT TO TAKE UP MUCH OF YOUR TIME. SO AGAIN YOU KNOW, WHY DO THE LOCAL HFCS ASSIGN THEIR VOLUME CAP TO TDHCA AND REALLY, THE PRIMARY REASON IS BECAUSE WE HAVE ECONOMIES OF SCALE.
LIKE I SAID, WE ISSUE JUST SHY OF $1 BILLION A YEAR AND WE CURRENTLY MANAGE ABOUT 2.6 BILLION ACROSS OUR TWO INDENTURES AND THAT IS THE BOTH THE BONDS AND THE MORTGAGE LOANS THAT WE'VE MADE ON THE OTHER SIDE. IT REALLY THERE'S A LOT OF FACTORS HERE.
THERE'S WE BUILT A CONTINUOUS PIPELINE OF MORTGAGE LOANS.
WE HAVE A TEAM DEDICATED TO BUILDING RELATIONSHIPS WITH LENDERS.
WE HAVE A FINANCE BOND FINANCE TEAM, LONG ESTABLISHED BUSINESS RELATIONSHIPS WITH LOAN WAREHOUSE PROVIDERS, PROGRAM ADMINISTRATORS TO TRACK MORTGAGE LOAN COMPLIANCE.
LOAN SERVICERS, BOND COUNSEL, TAX COUNSEL, DISCLOSURE COUNCIL.
SO WE REALLY HAVE BUILT THE FULL NETWORK TO MAKE SURE WE'RE USING THESE DOLLARS EFFICIENTLY.
[01:35:09]
USE THOSE DOLLARS BACK IN THAT COMMUNITY.WHAT WE ARE ESSENTIALLY DOING IS CREATING A DE FACTO SINGLE FAMILY MORTGAGE PROGRAM FOR QUALIFIED FIRST TIME BUYERS, HOME BUYERS AND VETERANS AT ZERO FINANCIAL RISK TO THE HFC AND WE DO PAY ABOUT FOUR AND THREE QUARTERS BASIS POINTS BACK ON THE TOTAL PORTFOLIO.
I SEE FOR DALLAS, WE'LL PROBABLY HAVE ABOUT A $30,000, $30,000 THAT WILL SEND TO CITY OF DALLAS HFC AT THE END OF THIS CALENDAR YEAR.
FOR THE PORTFOLIO THAT YOU HAVE.
REALLY, I WANT TO STOP HERE AND ANSWER QUESTIONS.
THIS IS A PROGRAM THAT WE WILL DO EACH YEAR AND IT HAS BEEN LIKE I SAID, IT'S BEEN SUCH AN IMPORTANT PART OF OUR PROGRAM AND ENSURING THAT WE HAVE FUNDS AVAILABLE TO PROMOTE SINGLE FAMILY HOME OWNERSHIP ACROSS THE STATE.
WITHOUT THESE VOLUME CAP ASSIGNMENTS, WE WOULD BASICALLY RUN OUT OF FUNDS AND REALLY HAVE TO RESORT TO OTHER WAYS, MORE EXPENSIVE WAYS FOR THE BORROWERS TO ACCESS HOMEOWNERSHIP ACROSS THE STATE.
I HAVE A LOT OF DATA BECAUSE I KNOW THERE WERE QUESTIONS REGARDING AMI.
I KNOW THERE WERE QUESTIONS REGARDING YOU KNOW, I HAVE DATA REGARDING TARGETED AREA, BUT I KNOW AT THE END OF THE DAY, IT'S ABOUT MAKING SURE THAT WE'RE USING THESE VOLUME CAP DOLLARS THAT ARE ASSIGNED TO THE CITY AS EFFICIENTLY AS POSSIBLE.
IN THE CITY AND SO I THANK THE CITY OF DALLAS HSC FOR ASSIGNING VOLUME CAP DOLLARS TO US AND I'M GOING TO END MY COMMENTS NOW AND ANSWER ANY QUESTIONS THAT ANYONE MAY HAVE.
THANK YOU FOR THAT PRESENTATION.
WE'RE GOING TO START TO MY LEFT WITH CHAIR GRACEY.
WELL, I DON'T HAVE ANY QUESTIONS, BUT I JUST WANT TO SAY I THINK IT'S AN EXTREMELY IMPORTANT TOOL AND I KNOW WHENEVER IT COMES UP ON OUR AGENDA, WE'RE VERY HAPPY TO SEE IT AND HAPPY TO HAVE YOUR SUPPORT IN DEVELOPING THE WELL, HELPING PEOPLE AFFORD SINGLE FAMILY HOUSING.
SO THANK YOU FOR ADMINISTERING THIS.
I THINK THIS IS AN EASY PROGRAM FOR US.
SECOND, EVERYTHING HAS JUST BEEN SAID.
I GUESS I JUST ASK STAFF, DO YOU HAVE A TAKEAWAY FROM THIS THAT WE.
ANYTHING YOU'D LIKE TO SAY? OTHERWISE, I HAVE NO QUESTIONS.
WE JUST NEED YOUR APPROVAL WHEN IT COMES TO COUNCIL.
COUNCIL MEMBER WILLIS, THANK YOU.
HOW ARE THEY HANDLED? WHAT IS THIS? I MEAN, DO WE SEE MUCH OF THAT? ARE THESE FORGIVABLE IN ANY INSTANCE? YEAH, NO, THAT'S A GREAT QUESTION AND FORTUNATELY WE DO.
AND, YOU KNOW I THINK THERE ARE A COUPLE THINGS AT PLAY HERE.
NUMBER ONE, LET'S TALK ABOUT THE OVERALL FINANCIAL SITUATION WE ARE LENDING TO, AGAIN, LOWER INCOME AND SO IF SOMETHING HAPPENS NEGATIVE IT IMPACTS AND IT IMPACTS HARD AND THERE'S NOT A LOT OF EXCESS FUNDS AVAILABLE TO RIGHT THE SHIP AND SO WHEN WE LOOK AT THESE PROGRAMS, WE'RE REALLY TRYING HARD TO MAKE SURE THAT WE MAKE THIS AS ACCESSIBLE AS POSSIBLE, BUT WE DON'T STEP ON OUR OWN TOES IN TERMS OF LENDING TO PEOPLE THAT MAY NOT BE ABLE TO HAVE THE FINANCIAL WHEREWITHAL AND SO WE DO HAVE A HIGHER DEFAULT RATE THAN EVEN A STANDARD HFA IN THE CITY OF TEXAS AND IT'S BECAUSE WE ARE REACHING OUT, WE ARE BEING MORE AGGRESSIVE ABOUT WHERE WE'LL LAND, AND WE TAKE ON ALL OF THAT FINANCIAL RISK AT TDHCA AND SO AGAIN, YOU KNOW, WE'LL LEND IN DALLAS.
WE WILL CONTINUE TO LEND AS LONG AS WE HAVE FUNDS AVAILABLE.
BUT YEAH, THE DEFAULT RATES ARE HIGHER.
WE ARE DOING A LOT OF WORK, KIND OF A POST-COVID HANGOVER THAT WE'RE NOT OVER YET.
IT'S SOMETHING THAT WE ADDRESS, BUT IT IS.
SO PEOPLE AREN'T DISPLACED, SO THEY DON'T THEY?
[01:40:04]
THE HOME IS NOT REPOSSESSED.OR I MEAN, YOU'RE SAYING NO IF WE GET TO A PLACE I MEAN, IT'S KIND OF STANDARD HFA. WE, FOLLOW HUD AND HFA GUIDELINES IN TERMS OF DELINQUENCIES AND FORECLOSURES. WE ARE PROBABLY SLOW ON THE FORECLOSURE SIDE OF THINGS.
THE WE WILL FORECLOSE THAT IT'S REALLY IN THE HAND.
IT'S DRIVEN BY OUR SERVICERS AND SO, YOU KNOW, WE ARE FOCUSED.
WE NEED TO MAKE SURE THAT WE HAVE FUNDS AVAILABLE TO PAY TO PAY BACK.
BUT THE LOANS ARE ALL GUARANTEED BY BY GINNIE MAE.
THEY'RE ALL GUARANTEED BY THE FEDERAL GOVERNMENT.
SO IF WE DO HAVE A DEFAULT SITUATION, WE WILL GET THE FUNDS BACK EVENTUALLY.
BUT YEAH, WE TRY VERY HARD AND WE'VE ACTUALLY BROUGHT ON A NEW SERVICER THAT WE SHOULD BE ON WITH THE BEGINNING OF THE YEAR. SO WE CAN BE A LITTLE BIT MORE PROACTIVE.
I THINK OUR APPROACH IS IF YOU HAVE A LOWER INCOME HOUSEHOLD AND THEY FALL 30 DAYS BEHIND, 60 DAYS BEHIND, IF YOU GET PAST 60 DAYS, THEY'RE NEVER GOING TO BE ABLE TO COVER THAT GAP AND SO WE HAVE VARIOUS PROGRAMS AVAILABLE THAT WE TRY AND HELP KEEP PEOPLE ON TRACK.
BUT IT'S AN IMPORTANT PART OF THE EQUATION.
IT IS A CHALLENGE THAT WE HAVE.
IT IS A CHALLENGE THAT WE FACE, CERTAINLY IN TWO PERSPECTIVES.
ONE POST COVID AND TWO IS THE RISING INTEREST RATE ENVIRONMENT AND SO YOU CAN'T JUST REFINANCE OR MODIFY LOANS TO A LOWER RATE. SO IT'S A CHALLENGE THAT WE DEFINITELY FACE.
WE TRY AND DO EVERYTHING WE CAN TO KEEP PEOPLE IN THE HOMES.
IT'S AN IMPORTANT PART OF GENERATIONAL WEALTH.
COUNCILMEMBER SCHULTZ, THANK YOU.
JUST VERY QUICKLY AND THIS MAY BE A QUESTION LATER FROM METRO TAX OR SOME OF OUR PARTNERS IN RESEARCH, AND THAT IS WHAT IS THE BUT TO YOU, WHAT IS THE AVERAGE HOME PRICE THAT YOU'RE LOANING TO? SO IN DALLAS, I HAVE THAT RIGHT HERE.
IT WAS I THINK I HAVE IT ACTUALLY ON ONE OF THE SLIDES.
SORRY. WHAT SLIDE WAS THAT? IN DALLAS IS 255,000.
WHAT IS THE HOUSE PRICE? THE HOUSE PRICE I NEED TO PULL UP.
I JUST WANT TO INTERRUPT FOR ONE SECOND.
I'M SORRY. WHAT I'M LOOKING FOR, AND THIS MAY BE LATER.
RESEARCH IS GIVEN THE HOME PRICES AND THE SIZE OF THE MARKET AVAILABILITY OF THOSE HOMES IN DALLAS.
I DON'T THINK SO. NOT AT THOSE PRICE POINTS.
SO THAT'S THE RESEARCH I THINK THAT WE STILL NEED ON THIS HOME MARKET, BECAUSE IT COULD BE THAT OUR MARKET IS CLOSE TO BEING SATURATED AND WHAT'S ACTUALLY AFFORDABLE TO PURCHASE IN DALLAS AS THE HOME PRICES GO UP.
SO THAT'S WHERE THAT'S WHAT I'M INTERESTED IN KNOWING IS WHAT'S THE POTENTIAL MARKET FOR THIS? NO, I APPRECIATE THAT.
LET ME PULL THAT DATA FOR YOU.
IT IS A CHALLENGE. IT'S A CHALLENGE ACROSS THE STATE.
YOU KNOW, WE SEE VERY LIMITED PARTICIPATION IN OUR PROGRAM HERE IN TRAVIS COUNTY.
PRIMARILY FOR THAT VERY REASON.
SO IT'S A NO, IT'S TRULY YOU'VE NAILED THE THAT'S THE ISSUE.
I WOULDN'T NECESSARILY SAY THAT IT'S EASY TO GIVE OUT A LOAN, BUT THAT'S KIND OF, YOU KNOW, THAT FIRST OR SECOND STEP RATHER ARE YOU ABLE TO PROVIDE US SOME OF THE PROGRAMS AND RESOURCES THAT YOU MENTIONED, MAYBE WITH, YOU KNOW, HOW TO BALANCE A CHECKBOOK, A LIFE SKILLS IN ORDER FOR SOMEONE TO BE ABLE TO STAY IN THEIR HOME AND HAVING THE RESOURCES IF THE HVAC GOES OUT, IF THERE'S THE GARAGE DOOR BREAKS, WHAT ARE WE DOING TO COACH INDIVIDUALS SO THAT THEY ARE SUCCESSFUL FOR LONG TERM IN THAT HOME? ANOTHER ANOTHER FANTASTIC QUESTION.
THANK YOU. SO TO PARTICIPATE IN OUR PROGRAM NUMBER ONE, WE QUALIFY THE LENDERS.
I DON'T HAVE ALL THE DETAILS ON THAT PROGRAM.
[01:45:03]
I CAN SEND YOU KIND OF A VERSION.THE VERSION THAT WE'RE CURRENTLY USING AND WE ARE IN TALKS OF MAYBE ADDING A DIFFERENT PROGRAM TO THAT, BUT IT IS AN IMPORTANT PART OF THE EQUATION, AND IT IS A REQUIREMENT FOR ALL BORROWERS TO COMPLETE A HOME OWNERSHIP EDUCATION PROGRAM.
GREAT. THANK YOU AND IF THERE'S SOMEONE, A FAMILY THAT DOESN'T QUALIFY THE FIRST GO AROUND, IS THERE A PATHWAY TO GETTING THAT FAMILY TO REAPPLY AND BE SUCCESSFUL? YEAH. YOU KNOW, THIS IS ALL PART OF OUR LENDING APPROACH.
YOU KNOW, IT'S VERY DIFFICULT FOR US TO GO OUT AND REACH INDIVIDUALS.
SO WE HAVE TO REACH OUR MARKET THROUGH REALTORS AND LENDERS.
RIGHT? THEY'RE THE ONES THAT HAVE THE FEET ON THE GROUND AND ONE OF THE THINGS THAT WE'RE WORKING ON RIGHT NOW IS WE'VE, ENGAGED WITH THE MARKETING TEAM AND WE'RE DEVELOPING AN ENTIRE MARKETING PROGRAM TO PROMOTE HOMEOWNERSHIP.
WHEN WILL YOU BE READY? AND WHAT THOSE KIND OF WHAT THOSE BARS ARE TO HELP THEM MAKE A THE RIGHT DECISION.
BUT THAT IS DEFINITELY PART OF THE PART OF THE PROGRAM AND PART OF THE EDUCATION.
THANK YOU SO MUCH FOR THAT PRESENTATION.
I BELIEVE TERESA MORALES IS REMOTE.
GOOD MORNING. CAN EVERYONE HEAR ME? OKAY. YES.
THANK YOU FOR THE OPPORTUNITY TO BE HERE.
I AM TERESA MORALES WITH THE TEXAS DEPARTMENT OF HOUSING.
I'M THE DIRECTOR OF MULTIFAMILY BONDS AND 4% HOUSING TAX CREDITS.
SO EVERY BOND ISSUANCE ON THE MULTIFAMILY SIDE FOR TDHCA, AS WELL AS EVERY 4% APPLICATION ACROSS THE STATE, FLOWS THROUGH MY PARTICULAR AREA.
THE 4% PROGRAM IN PARTICULAR KIND OF OUTLINE WHAT OUR PROCESS IS AND HOW SOME OF THAT MAY DOVETAIL INTO THE CITY'S PROCESS WITH RESPECT TO RESOLUTIONS AND THINGS AND JUST TO START, THE HOUSING TAX CREDIT PROGRAM IN GENERAL IS COMPRISED OF TWO DIFFERENT TAX CREDIT PROGRAMS. ONE OF THEM IS THE 4% OR WHAT'S CALLED THE NONCOMPETITIVE PROGRAM AND THE OTHER ONE IS THE 9% OR THE COMPETITIVE PROGRAM ON THE 4% SIDE.
THE THOUGHT THERE BEING IF AN APPLICANT IS HAVING TO COMPETE FOR A BOND ALLOCATION, THEY SHOULD NOT HAVE TO COMPETE FOR THE 4% CREDIT AS WELL AND SO THOSE CREDITS KIND OF GO ALONG WITH THE TRANSACTION, SO LONG AS THE BONDS THAT THEY RECEIVE COMPRISE AT LEAST 50% OF THE COST OF THE LAND AND THE BUILDINGS. CONTRAST THAT WITH THE 9% SIDE, WHICH IS COMPETITIVE.
MOVING ON TO THAT NEXT SECTION THERE.
SO ON THE 4% SIDE, APPLICATIONS ARE ACCEPTED MONTHLY THROUGHOUT THE YEAR.
APPLICATIONS, EVEN THOUGH THE TAX CREDIT IS CONSIDERED AUTOMATIC, IF YOU WILL.
THE RULE BOOK, IF YOU WILL, THAT WE USE TO EVALUATE ALL OF THE 4% APPLICATIONS IS IN THE QUALIFIED ALLOCATION PLAN OR THE QAP THAT PARTICULAR DOCUMENT GOVERNS THE HOUSING TAX CREDIT PROGRAM.
IT CONTAINS ALL OF THE ELIGIBILITY AND THRESHOLD ITEMS THAT WE'RE LOOKING FOR ON THE 4% SIDE, AND IT ALSO INCLUDES THE SCORING COMPONENT WITH RESPECT TO 9% APPLICATIONS.
THEY'RE SELECTING A BOND ISSUER.
SO THAT IS SORT OF THE FIRST STEP IN THE PROCESS.
THERE ARE ALSO STATEWIDE ISSUERS, TDHCA BEING ONE OF THEM, BEING ABLE TO ISSUE BONDS REGARDLESS OF THE LOCATION IN THE STATE AND THEN THERE'S ALSO TSAHC, THE TEXAS STATE AFFORDABLE HOUSING CORPORATION, WHO ALSO HAS THE AUTHORITY TO ISSUE BONDS.
[01:50:06]
ONCE AN APPLICANT DOES SECURE THAT BOND RESERVATION, THEN THAT IS WHEN THEY GET STARTED ON THE 4% SIDE AND SUBMIT THAT APPLICATION TO US. SO THERE'S KIND OF TWO DIFFERENT TRACKS THERE.WITH RESPECT TO THE 4% SIDE, ON THIS NEXT PAGE, I THOUGHT THAT I WOULD GO INTO A LITTLE BIT MORE DETAIL AS FAR AS OUR REVIEW PROCESS, SOME OF THE THINGS THAT WE ARE LOOKING FOR, SOME OF THE REQUIREMENTS IN OUR QAP.
SO IT GOES INTO A LOT MORE DETAIL WITH RESPECT TO TIMING WHEN APPLICATIONS ARE SUBMITTED.
ONCE A RESERVATION IS RECEIVED AND AN APPLICANT FILES THEIR 4% APPLICATION WITH TDHCA, WE ARE REQUIRED TO SEND OUT PUBLIC NOTIFICATIONS WITHIN 14 DAYS.
SO THESE NOTIFICATIONS ARE SENT TO ALL OF THE LOCAL ELECTED OFFICIALS.
SO A LOT OF YOUR OFFICES MAY BE INUNDATED WITH THESE NOTIFICATIONS FROM TDHCA.
IT IS A STATUTORY REQUIREMENT AND SO WE DO SEND THOSE OUT ON EVERY 4% DEAL AS WELL AS 9% DEAL.
A NOTE HERE WITH RESPECT TO NEIGHBORHOOD ORGANIZATIONS THOSE ARE AS REPORTED TO US BY THE APPLICANT.
THEY PROVIDE US WITH THAT CONTACT INFORMATION, AND THEN WE NOTIFY ACCORDINGLY.
AS I INDICATED EARLIER, WE DO REVIEW FOR COMPLIANCE WITH OUR QAP.
ON THE 4% SIDE, THAT'S SPECIFIC TO ELIGIBILITY AND THRESHOLD ITEMS. I'VE PROVIDED SOME OF THESE HERE.
WE DO HAVE A LIST OF WHAT WE CALL UNDESIRABLE SITE FEATURES.
THE QAP DOES GO INTO A LITTLE BIT MORE DETAIL AS FAR AS MITIGATION THAT WOULD BE REQUIRED, OR IF NO MITIGATION CAN BE PROVIDED, THE SITE WOULD JUST BE FLAT OUT INELIGIBLE.
THERE'S ALSO WHAT WE CALL NEIGHBORHOOD RISK FACTORS IDENTIFIED IN THE QAP.
THOSE INCLUDE THINGS LIKE POVERTY RATE, THE RATE OF VIOLENT CRIME WITHIN THE PARTICULAR AREA, AS WELL AS SCHOOL PERFORMANCE OF THE SCHOOLS THAT ARE WITHIN THE ATTENDANCE ZONE OF THIS PARTICULAR PROPERTY.
THAT NEXT BULLET POINT WITH RESPECT TO RESOLUTIONS.
SO WE HAVE A NUMBER OF RESOLUTIONS THAT ARE REQUIRED THROUGH THE QAP.
SOME OF THOSE FOCUS ON CONCENTRATION OF AFFORDABLE HOUSING.
AS AN EXAMPLE, WE HAVE THE TWO TIME PER CAPITA RESOLUTION AND WHAT THAT MEANS IS, IF A PROJECT IS TO BE LOCATED IN AN AREA THAT HAS MORE THAN TWICE THE STATE AVERAGE OF HOUSING TAX CREDIT UNITS, THEN WE WILL BE LOOKING FOR A RESOLUTION FROM THE LOCAL GOVERNING BODY AND THERE'S ALSO A RESOLUTION THAT'S CALLED THE ONE MILE THREE YEAR RULE.
WHAT THAT'S LOOKING AT IS IF A PROPOSED DEVELOPMENT IS TO BE LOCATED WITHIN A MILE OF ANOTHER HOUSING TAX CREDIT PROPERTY THAT SERVES THE SAME POPULATION AND WE AGAIN, ARE LOOKING FOR A RESOLUTION FROM THE LOCAL GOVERNING BODY.
I BELIEVE THIS WAS REFERENCED EARLIER.
THERE'S ALSO A RESOLUTION THAT'S CALLED A RONO OR A RESOLUTION OF NO OBJECTION.
THAT DOES NOT SPEAK TO CONCENTRATION SPECIFICALLY, BUT RATHER PUTTING THE LOCAL GOVERNMENT ON NOTICE THAT A TAX CREDIT APPLICATION HAS BEEN RECEIVED.
THE NEXT BULLET POINT PREVIOUS PARTICIPATION.
SO PART OF OUR REVIEW PROCESS IS TO LOOK AT THOSE INDIVIDUALS INVOLVED IN THE OWNERSHIP STRUCTURE OF A PROPERTY AND WHAT WE DO IS WE RUN THOSE PRINCIPLES AGAINST OTHER PROPERTIES THAT THEY MAY HAVE IN OUR PORTFOLIO AND WE MAKE SURE THAT THOSE PROPERTIES ARE COMPLIANT, MEANING THAT THERE'S NO OUTSTANDING COMPLIANCE ISSUES THAT HAVE NOT BEEN CORRECTED.
[01:55:04]
PROJECT, THAT THEY ARE INDEED COMPLIANT WITH OTHER PROPERTIES IN THE PORTFOLIO.WE REVIEW THE APPLICATION FOR ACCESSIBILITY REQUIREMENTS.
WE'RE LOOKING FOR BOTH MOBILITY AS WELL AS HEARING AND VISUAL AND THEN WE ALSO DO OUR OWN UNDERWRITING TO MAKE SURE THAT THE PROPERTY AS PRESENTED IS FINANCIALLY FEASIBLE TO THE EXTENT THAT THERE IS GAP FINANCING.
THIS WOULD MOST LIKELY COME IN THE FORM OF LOCAL DOLLARS THAT ARE BEING PUT INTO A 4% APPLICATION.
BEFORE WE CAN MOVE FORWARD WITH OUR UNDERWRITING WE AGAIN LOOK INTO CONCENTRATION ISSUES WITH A MARKET STUDY, MAKING SURE THAT A PARTICULAR MARKET CAN ABSORB THE UNITS THAT ARE BEING PROPOSED AND AT THE AMI LEVELS THAT ARE BEING REPRESENTED AND THEN AGAIN, JUST OVERALL FINANCIAL FEASIBILITY WITH DEBT COVERAGE RATIOS AND MAKING SURE THAT ALL OF THE UNDERWRITING COMPLIES WITH OUR SHAPE.
AND THAT IS SOMETHING THAT APPLICANTS WILL THEN TAKE TO THEIR BUSINESS PARTNERS TO BE IN A POSITION TO CLOSE ON THE TRANSACTION AND THEN JUST LONG TERM, THERE IS GOING TO BE A LAND USE RESTRICTION AGREEMENT OR LURA PLACED ON ALL OF THESE PROPERTIES AND SO THERE ARE ONGOING MONITORING THAT IS DONE BY TDHCA STAFF AND THAT'S SORT OF OUR PROCESS IN A NUTSHELL.
IF THERE ARE SPECIFIC QUESTIONS, I'M CERTAINLY WILLING TO ENTERTAIN THOSE.
THANK YOU FOR THAT PRESENTATION.
I'M GOING TO START TO MY RIGHT WITH CHAIR WEST.
COUNCIL MEMBER WILLIS. THANK YOU, MISS MORALES, I DO HAVE ONE QUESTION.
IS THAT THE. IS THAT? EVERY APPLICATION IS REQUIRED TO SUBMIT A MARKET STUDY AND SO THE MARKET ANALYST WILL DEFINE WHAT THEY CONSIDER TO BE THEIR PRIMARY MARKET AREA AND FROM THERE, WE'RE LOOKING TO MAKE SURE THAT THOSE CAPTURE RATES ARE IN LINE WITH WHAT OUR QAP REQUIRES.
SO BUT IT'S SOUNDING LIKE THE ANALYST IS DETERMINING WHAT THAT MARKET AREA IS.
IT'S GENERALLY BOUND BY CENSUS TRACKS AND OR ZIP CODES, AND IT'S REALLY LOOKING AT WHERE THE RENTERS ARE GOING TO BE COMING FROM, SO IT WOULDN'T BE AN ENTIRE CITY.
BUT IT'S NOT NECESSARILY LIMITED BY MILES.
THANK YOU. SO WHAT I'M GETTING AT IS THE AGGREGATE.
SO THIS RESEARCH IS BEING DONE.
IT'S VALUABLE. BUT IT SEEMS TO BE, YOU KNOW, IT'S PROJECT CENTRIC CENTRIC AND I UNDERSTAND WHY.
MISS MORALES IN OUR BRIEFING ROOM TO SOMEONE ELSE.
IS THIS EVER AGGREGATED TO WHERE WE CAN GET A BIGGER PICTURE OF WHERE OUR CONCENTRATIONS ARE AND WHAT THE YOU KNOW, THE CRYSTAL BALL OF THE FUTURE OF, YOU KNOW, WHERE ARE WE SEEING THAT CONCENTRATION COULD BEGIN TO OCCUR AND JUST SYNTHESIZING ALL OF THIS SO WE CAN USE IT MOST EFFECTIVELY AND REALLY MAXIMIZE THE FACT THAT SOMEONE ELSE HAS DONE THIS.
SO DALLAS LOOKS AT CONCENTRATION FOR THE CONCENTRATION OF POVERTY, LOW INCOME THAT WOULD STIFLE THE ABILITY TO ECONOMICALLY GROW AN AREA AND NOT PROVIDE WHAT OUR LOW INCOME FAMILIES NEED TO HAVE A HEALTHY ENVIRONMENT.
THE CONCENTRATION THAT THAT TERESA IS SPEAKING TO IS TO DETERMINE IF THE AREA CAN ABSORB THE TYPE OF HOUSING THAT IS BEING PLACED THERE AND CAN BE OCCUPIED BY THE TENANTS THAT NEED TO OCCUPY IT.
[02:00:01]
IS THAT CORRECT, TERESA? CORRECT. SO WE ARE LOOKING AT THE AMI LEVELS THAT ARE REPRESENTED IN THE APPLICATION.IF THEY'RE PROPOSING A LOT OF 30% UNITS OR 60% UNITS, WE'RE LOOKING AT THE CAPTURE RATES OF WHAT IS ALREADY EXISTING IN THAT MARKET AREA WITH RESPECT TO THOSE AMI LEVELS AND WHAT IS BEING PROPOSED, WHETHER, FOR EXAMPLE, IF A PARTICULAR MARKET IS OVERSATURATED WITH 60% UNITS, IT COULD BE THAT SOME OF THOSE COMPARABLE PROPERTIES, BECAUSE THERE'S AN OVERCONCENTRATION OF THEM, THEY MAY NOT BE ABLE TO ACHIEVE THE MAXIMUM 60% RENTS.
SO THAT'S SOMETHING THAT WE ARE LOOKING AT AND COMMENTING ON TO THE EXTENT POSSIBLE.
SO THIS IS SOUNDING LIKE TWO SEPARATE OBJECTIVES HERE.
SO NOT REALLY A GREAT WAY TO USE IT.
WHAT ARE YOUR THOUGHTS ON THAT. YES BUT WE CAN.
WHAT WE DO KNOW IS WE KNOW WHERE ALL OF THESE PROJECTS EXIST IN THE CITY.
SO WE CERTAINLY CAN SEE, YOU KNOW, WHAT IS IN EACH OF THE PROPERTIES AND HOW IT IS CONTRIBUTING TO WHAT THAT ENVIRONMENT AND WHAT IS THERE VERSUS IF THEY WEREN'T THERE AT ALL, AND HOW THAT COMMUNITY WOULD LOOK SO WE CAN PINPOINT THEM.
IT'S JUST NOT THE SAME USE AND DATA NEEDED.
THANK YOU. YES. A COUPLE OF QUESTIONS.
SO AGAIN, ALL I SEE THROUGHOUT THESE LAST BRIEFINGS ARE MAPS, AND I WANT TO SEE AGAIN HFC, PFC AND NOW THESE LOW INCOME TAX CREDIT THINGS JUST TO SEE AGAIN FOR ME IT'S YES, IT'S CONCENTRATION.
BUT ALSO ARE WE ACCOMPLISHING WHAT WE'RE TRYING TO ACCOMPLISH BETWEEN ALL OF THESE PRODUCTS IN ANY PARTICULAR DISTRICT ANYWHERE WITHIN THE CITY. ARE WE ACTUALLY.
HOW ARE WE? HOW ARE THESE PRODUCTS CONTRIBUTING TO OUR GOALS? THAT'S WHAT I GUESS I'M TRYING TO GET TO THERE.
SO THAT'S SOMETHING I'D LIKE TO SEE AND THEN I GUESS FOR YOU, MISS MORALES, HOW MUCH WEIGHT DOES A COUNCIL MEMBER'S OPPOSITION TO THESE REQUESTS? HOW MUCH DOES THAT CARRY AS FAR AS INDIVIDUAL LETTERS GO? KEEP IN MIND THAT BECAUSE THE 4% PROGRAM DOES NOT HAVE A SCORING COMPONENT, THERE IS NOT A PARTICULAR SCORE THAT WOULD BE ASSIGNED TO ANY LETTERS OF SUPPORT OR OPPOSITION.
THIS IS SORT OF WHERE THE 4% DEALS DIFFER FROM THE 9% PROGRAM.
I WOULD SAY THAT AS FAR AS WEIGHT FOR SUPPORTING OR OPPOSING AN APPLICATION, THE RESOLUTION OF NO OBJECTION OR OTHER RESOLUTIONS THAT THE QAP REQUIRES COULD BE AN OPPORTUNITY TO HAVE THOSE LOCAL ELECTED OFFICIALS WEIGH IN ON THAT PARTICULAR PROJECT. OKAY.
SO AND WHEN AS I RIDE AROUND, I CAN SEE THEM.
I JUST DON'T KNOW WHERE THEY ARE.
SO AGAIN, I GUESS I'M JUST REQUESTING AN OVERLAY ON WHERE THESE LOCATIONS ARE.
SINCE YOU'RE INDICATING THERE'S NOT A SCORING, WHICH IS, OF COURSE, VERY COMPETITIVE AT THE 9% LEVEL, HOW ARE YOU PRIORITIZING THE VARIOUS APPLICATIONS? IS IT JUST FIRST IN OR IS THERE ANOTHER METHOD THAT YOU'RE USING.
SO PRIMARILY APPLICATIONS THAT ARE SUBMITTED.
WHAT DRIVES THAT IS THE AVAILABILITY OF BOND CAT AND SO ONCE A RESERVATION OF BONDS HAS BEEN RECEIVED FOR A PROJECT, THEN THAT'S WHEN THE 4% APPLICATION IS SUBMITTED AND IT STARTS OUR IT ADDS TO OUR PIPELINE AND STARTS OUR PROCESS IN TERMS OF PRIORITIZING.
BUT AS FAR AS DECIDING WHETHER OR NOT TO AWARD THOSE ARE STRICTLY BASED ON THE COMPLIANCE WITH THE QAP AND MEETING ELIGIBILITY AND THRESHOLD AS WELL AS UNDERWRITING.
SO THAT PROCESS THAT I PREVIOUSLY EXPLAINED APPLICATIONS HAVE TO MEET ALL OF THAT IN ORDER TO GET THROUGH AND BE AWARDED THOSE 4% CREDITS.
SO NOTWITHSTANDING ANY HICCUPS IN ANY OF THE ITEMS.
[02:05:05]
IT'S REALLY JUST BASED ON FIRST IN.SO IF I CAN GO BACK TO THE THE ELIGIBILITY WHERE IT'S CONSIDERING.
UNDESIRABLE SITE FEATURES AND NEIGHBORHOOD RISK FACTORS.
BIT MORE ABOUT HOW CONFIDENT YOU ARE THAT YOU'RE GETTING THE FULL PICTURE OF THE SITUATION, WHEN, OF COURSE, THE DEVELOPER WANTS YOU TO AWARD THIS TO THEM.
SO PART OF THE APPLICATION IS FOR APPLICANTS TO DISCLOSE PROXIMITY TO THESE ITEMS. SO THEY HAVE A CERTIFICATION WHERE THEY WOULD INDICATE IF ANY OF THESE SITE FEATURES OR NEIGHBORHOOD RISK FACTORS APPLY AND WE THROUGHOUT THE QAP REALLY DO STIPULATE THAT IT'S APPLICANT'S RESPONSIBILITY AND THEIR DUE DILIGENCE TO CONFIRM THESE THINGS AND SO THAT IS WHAT WE RELY ON.
WE DON'T HAVE IT BUILT INTO OUR PROCESS TO INDIVIDUALLY GO THROUGH EVERY SINGLE APPLICATION AND MAP IT AND MAKE SURE THAT THERE AREN'T ANY OF THESE FEATURES PRESENT.
TEXAS IS A FAIRLY LARGE STATE, AND SO WE JUST RELY A LOT ON CERTIFICATIONS WITHIN THE APPLICATION.
BUT IT'S RELIANT UPON CERTIFICATIONS AND IS A DEVELOPER ELIGIBLE TO RECEIVE THE 4% CREDIT IF A PROPERTY IS ALREADY IN A FEDERALLY QUALIFIED CENSUS TRACT? YOU'RE REFERRING TO A QCT? YES. A QUALIFIED CORRECT.
OKAY AND THEN WHAT ABOUT CRIME STATISTICS? IS THAT PART OF THE APPLICATION WHEN YOU'RE TALKING ABOUT THE NEIGHBORHOOD RISK FACTORS? IT IS. SO WE HAVE AN ITEM THAT RELATES TO THE PART ONE VIOLENT CRIME RATE AND WHAT IS IN THE SHAPE IS IF YOU ARE IN AN AREA THAT HAS A THRESHOLD OF OVER 18 PER 1000 PERSONS, THAT IS SOMETHING THAT NEEDS TO BE DISCLOSED IN THE APPLICATION AND MITIGATION PROVIDED.
SO WHAT OUR BENCHMARK IS IN TERMS OF SOURCE IS NEIGHBORHOOD SCOUT.
THAT'S WHAT WE HAVE FOUND TO BE SORT OF A UNIVERSAL METHOD TO JUST IDENTIFY WHAT IS THE PART ONE VIOLENT CRIME RATE IN THAT PARTICULAR NEIGHBORHOOD OR CENSUS TRACT.
IF IT EXCEEDS 18, THEN AN APPLICANT IS ALLOWED TO PULL THE ACTUAL POLICE BEAT DATA AND CALCULATE THAT CRIME RATE BASED ON ACTUAL DATA.
RECOGNIZING THAT NEIGHBORHOOD SCOUT COULD BE A BIT OUTDATED, OR COULD BE INCLUDING CRIMES THAT ARE NOT ACTUALLY PART ONE VIOLENT CRIMES AS THE LOCAL MUNICIPALITY DEFINES THEM AND SO WHAT WE CAN RECEIVE AS FAR AS MITIGATION IS A BREAKDOWN OF WHAT THE LOCAL POLICE BEAT DATA IDENTIFIES, AND IF THAT IS UNDER THE THRESHOLD, THEN THAT NEIGHBORHOOD RISK FACTOR CAN BE CONSIDERED MITIGATED AND SO JUST TO CLARIFY, YOU'RE SAYING 18 VIOLENT CRIMES PER 1000.
IT'S 18 PER 1000 IS THE CRIME RATE.
BUT 18 VIOLENT CRIMES NOT 18 CRIMES NOT 18 CRIMES? NO, WE'RE ONLY LOOKING AT THE PART ONE VIOLENT CRIMES.
WOW AND WHAT IS THE AMOUNT OF LAND AROUND THE PROPERTY THAT THEY NEED TO CONSIDER? I MEAN, IS IT THE WHOLE CITY'S VIOLENT CRIME RATE, OR IS IT, YOU KNOW, HALF MILE OR WHAT? WHAT AMOUNT OF SPACE ARE YOU TALKING ABOUT? NO. SO GENERALLY, THE WAY THAT NEIGHBORHOOD SCOUT DEFINES IT IS A CENSUS TRACT AND THEN WHAT OUR QUALIFIED ALLOCATION PLAN IS, IT KIND OF DEFINES IT A LITTLE BIT MOR THAT IS REALLY LOOKING AT THE NEIGHBORHOOD AND WHAT COULD BE CONCEIVABLY PART OF THE NEIGHBORHOOD WITH RESPECT TO THE LOCATION OF THE PROPERTY.
SO AS AN EXAMPLE, IF YOU'RE ON THE FAR SOUTHERN BORDER OF A FAIRLY LARGE CENSUS TRACT, IT COULD BE THAT AT THE OPPOSITE END WHATEVER IS OCCURRING IN THAT AREA ISN'T REALLY CONSIDERED PART OF YOUR NEIGHBORHOOD.
[02:10:09]
SO GENERALLY, WHAT WE START WITH IS IF A NEIGHBORHOOD SCOUT IS BASING IT OFF OF A CENSUS TRACT, THEN THE APPLICANT WOULD PULL THE PART ONE VIOLENT CRIMES OFF OF THE FROM THE LOCAL POLICE DEPARTMENT AND DO THAT CALCULATION BASED ON THE CENSUS TRACT AS A WHOLE.JUST TO GET AN APPLES TO APPLES COMPARISON.
IT IS POSSIBLE THAT WE CAN TAKE IT A STEP FURTHER AGAIN IF THERE ARE NATURALLY OCCURRING BOUNDARIES.
THEN WE MIGHT BE ABLE TO LOOK AT THAT A LITTLE BIT DIFFERENTLY.
DO YOU HAVE A STANDARD PACKAGE OF WHAT MITIGATION LOOKS LIKE OR EACH DEVELOPER WOULD PROPOSE MITIGATION EFFORTS? SO OUR QAP GOES INTO A LITTLE BIT OF DETAIL ABOUT THAT AND IT IS WHAT I WAS REFERRING TO AS FAR AS POLLING THE LOCAL POLICE SPEED DATA. SO AS WE DEVELOP OUR QAP EVERY YEAR, IT'S A PUBLIC RULEMAKING PROCESS AND WHAT WE ALLOW APPLICANTS THE ABILITY TO DO.
WE DO ALLOW APPLICANTS THE ABILITY TO PULL THE LOCAL POLICE DATA TO THE EXTENT NEIGHBORHOOD SCOUT IS NOT REPRESENTATIVE OF WHAT'S HAPPENING AT THE PROPERTY LEVEL OR NEIGHBORHOOD LEVEL.
OR IT'S IT'S MISCHARACTERIZED.
WE DO ALLOW APPLICANTS TO PULL THE LOCAL POLICE DATA AND CALCULATE THOSE VIOLENT CRIMES, AND PROVIDE US WITH THAT CALCULATION BASED ON INSTANCES OF CRIME, AS WELL AS THE POPULATION OF THE AREA THAT THEY'RE RESEARCHING.
BUT I GUESS WHAT I'M SAYING TO THE MITIGATION IS, ARE YOU PRESCRIBING THAT? OKAY, WELL, IF YOU ADD LIGHTING AND GATES AND CAMERAS, THEN WE'LL ACCEPT A HIGHER SCORE OR IS IT? NO, IT'S STRICTLY DATA BASED.
REALLY JUST TRYING TO CHANGE THAT NUMBER BASED ON BETTER DATA.
THANK YOU. CORRECT. THANK YOU FOR THAT PRESENTATION.
WE STILL HAVE THREE ITEMS BEFORE US.
CYNTHIA AND AARON HAVE BEEN WITH US THROUGHOUT THE DAY AND SO I'M GOING TO TAKE A TEN MINUTE RECESS AND RETURN BACK AT 11:31. SO WE ARE AT RECESS.
WELCOME BACK EVERYONE. TIME IS 11:42 AND WE ARE NOW BACK IN SESSION WITH ITEM D.
YOU COULD MOVE THE MIC A LITTLE BIT CLOSER, PLEASE.[INAUDIBLE] CAN YOU HEAR ME NOW? THANK YOU FOR ALLOWING ME TO MAKE THIS PRESENTATION TO THE HOUSING COMMITTEE AND ALSO ANY OTHER INTERESTED COUNCIL MEMBERS.
[02:15:20]
THAT TIME NOW IS 11:45 AND WE ARE BACK IN SESSION STARTING WITH ITEM D.THE OTHER THING I WANTED TO SAY, AND KEITH MADE THIS COMMENT AS WELL, IS THAT I THINK THIS ENTIRE CITY COUNCIL NEEDS TO BE CONGRATULATED FOR HOW CAREFUL THEY HAVE BEEN IN THEIR APPOINTMENTS TO THE PFC AND THE HFC.
WE HAVE JUST AN AMAZING BOARD.
RYAN GARCIA, WHO IS SITTING HERE WITH ME, IS OUR VICE PRESIDENT AND I JUST CAN'T BEGIN TO SAY ENOUGH ABOUT THE DEDICATION OF OUR BOARD MEMBERS.
IN ADDITION TO REVIEWING, YOU KNOW, SOMETIMES MASSIVE AMOUNTS OF DOCUMENTS FOR EACH TRANSACTION, ATTENDING THE BOARD MEETINGS AND OFTEN MAKING FIELD TRIPS TO SEE THE PROPOSED LOCATIONS FOR THEMSELVES.
WE ALSO ATTEND CONFERENCES, WHICH YOU COULD SEE FROM OUR FINANCIAL REPORT TO LEARN ABOUT WHAT OTHER TEXAS HFCS ARE DOING, AS WELL AS WHAT IS BEING DONE NATIONALLY.
THERE'S AN ORGANIZATION CALLED [INAUDIBLE], WHICH IS FOR ALL OF THE TEXAS HFC'S, AND THERE'S AN ORGANIZATION NAMED [INAUDIBLE], WHICH IS FOR ON THE NATIONAL LEVEL FOR ALL HFC'S AND WE TRY THE BEST WE CAN TO ATTEND.
WE INVITE ALL OF OUR BOARD MEMBERS TO ATTEND.
BUT AS YOU KNOW, WITH THEIR BUSY LIVES, SOMETIMES THERE ARE ONLY A FEW OF US WHO CAN AND WE JUST WENT TO [INAUDIBLE] AND WE RECEIVED THIS AWARD FOR THE WESTMORELAND STATION PROPERTY WHICH WAS REALLY EXCITING.
WE'VE RECEIVED MANY AWARDS OVER THE YEARS FOR SOME OF OUR PROPERTIES AND SO THAT'S A DEFINITE TRIBUTE TO THE CITY OF DALLAS AND THE WORK THAT WE ARE DOING BUT THE BIG TOPIC OF CONVERSATION AT THIS [INAUDIBLE] MEETING, WHICH JUST CONCLUDED AND WAS AT LAS COLINAS, BY THE WAY IS THAT THERE ARE DEFINITELY GOING TO BE SOME BILLS SUBMITTED IN THIS SESSION OF THE LEGISLATURE.
THAT WAS LITERALLY I DON'T THINK THERE WAS ANY PANEL THAT WAS NOT DISCUSSING THAT AND THE REASON I'M RAISING IT HERE AT THIS WORKSHOP IS BECAUSE YOU ARE CONSIDERED ONE OF THE THINGS YOU ARE CONSIDERING IS MAKING CHANGES TO OUR CERTIFICATE OF FORMATION AND OR OUR BYLAWS AND I THINK THAT IT WOULD REALLY BEHOOVE YOU TO WAIT AND SEE WHAT CHANGES ARE MADE IN THE LEGISLATURE, BECAUSE THOSE COULD IN FACT, I DON'T THINK YOU WANT TO GO THROUGH THIS PROCESS, AMEND OUR BYLAWS, AND THEN FIND OUT THAT SOMETHING IN THE LEGISLATION REQUIRES YOU TO AMEND THEM AGAIN.
SO I JUST WANTED TO RAISE THAT, BECAUSE THAT WAS JUST THE TOPIC OF CONVERSATION AT THE CONFERENCE AND THEN I KNOW THAT YOU DON'T NEED ME TO REPEAT WHAT WAS ALREADY GIVEN TO YOU IN THE PRESENTATION, BUT I JUST WANT TO GIVE SOME HIGHLIGHTS ABOUT THE ACCOMPLISHMENTS OF THE DHFC.
5741 OF THOSE UNITS ARE LIHTC UNITS, WHICH AVERAGE 60% OF AMI.
1316 OF THOSE LIHTC UNITS ARE OCCUPIED BY VOUCHER RECIPIENTS AND I THINK I KNOW I READ THE NEWSPAPER AVIDLY AND I'M SURE ALL OF YOU DO TOO AND YOU KNOW THAT THERE ARE NOT ENOUGH VOUCHER UNITS IN THE CITY OF DALLAS FOR THE PEOPLE WHO HAVE QUALIFIED AND HAVE RECEIVED THOSE VOUCHERS, AND THEN THEY CANNOT USE THEM BECAUSE THERE AREN'T ENOUGH UNITS AND I THINK THAT IT'S A WONDERFUL THING THAT IN THE CITY OF DALLAS, LIHTC PROPERTIES THEY ARE REQUIRED TO ACCEPT VOUCHERS AND THAT IS ONE OF THE WAYS I KNOW. MEMBER MENDELSOHN HAS STATED SO WELL THAT WE REALLY NEED TO SERVE NOT JUST PEOPLE AT 60% OF AMI, BUT PEOPLE BELOW THAT AND THE VOUCHERS ARE ONE OF THE WAYS THAT WE ARE DOING THAT.
SOME OF THEM HAVE AN AMI AS LOW AS 30%.
994 OF THOSE UNITS ARE WORKFORCE UNITS THAT ARE SIMILAR TO THE SEGMENT THAT THE PFC IS CREATING UNITS FOR AND I UNDERSTAND THAT WILL BE A DECISION FOR COUNCIL TO MAKE IS WHETHER YOU WANT TO CREATE
[02:20:09]
WORKFORCE UNITS IN ADDITION TO LIHTC UNITS.BUT WE FEEL THAT IT'S VERY IMPORTANT TO HAVE THOSE WORKFORCE UNITS BECAUSE SO MANY OF OUR ESSENTIAL SERVICE PROVIDERS DO NOT QUALIFY TO BE IN LIHTC BECAUSE THEIR INCOME IS ABOVE THE TECH LIMITS AND THEN THERE WAS A VERY STRONG HOUSING POLICY.
YOU KNOW, HOUSING POLICY CHANGES OVER TIME BUT THERE WAS A VERY STRONG HOUSING POLICY AT ONE POINT THAT MAYBE IS STILL THE HOUSING POLICY THAT IT'S GOOD TO HAVE MIXED INCOME UNITS, MIXED INCOME PROPERTIES, WHERE NOT EVERY RESIDENT IS BELOW A CERTAIN, FOR EXAMPLE, 60% AMI.
AND SO, YOU KNOW, YOU KNOW, IN OUR EFFORTS TO HELP PROMOTE THE CITY OF DALLAS HOUSING POLICY, WHICH IS WHAT WHAT OUR WHOLE GOAL IS TO DO, THAT'S WHAT WE WANT TO DO.
WE DO HAVE 1112 MARKET RATE UNITS MIXED IN WITH THE AFFORDABLE UNITS AND I THINK THERE ARE MANY PAPERS THAT YOU CAN READ BY PEOPLE WHO ARE EXPERTS IN THIS FIELD WHO SAY THAT IS VERY ADVANTAGEOUS TO THE TENANTS IN THOSE PROPERTIES TO BE IN A MIXED INCOME PROPERTY.
AS YOU SAW IN THE PRESENTATION, WE HAVE 23 PROPERTIES IN OPERATION OR UNDER CONSTRUCTION AND FIVE WHERE THE DHFC WAS THE BOND ISSUER ONLY AND THEN WE DID, AS YOU KNOW, PROVIDE A MAP OF WHERE THOSE UNITS ARE.
SO WHAT DOES THE DHFC BRING TO THE TABLE FOR THE CITY OF DALLAS IN ITS EFFORTS TO PROVIDE AFFORDABLE HOUSING? THE DHFC CAN ISSUE TAX EXEMPT PRIVATE ACTIVITY BONDS THAT YOU JUST HEARD THE PRESENTATION ABOUT IN CONJUNCTION WITH 4% HOUSING TAX CREDITS.
THESE BONDS ARE NOT GENERAL OBLIGATION BONDS OF THE CITY, AND THE DEVELOPER PROVIDES ALL THE GUARANTEES AND DEBT REPAYMENT OBLIGATIONS, SO THEY ARE JUST A GREAT WAY TO PROVIDE AFFORDABLE HOUSING.
IN ADDITION, AS YOU HAVE DISCUSSED THIS MORNING, THE DHFC CAN PARTNER WITH THE DEVELOPERS AND PROVIDE PROPERTY TAX EXEMPTIONS AND IN THIS CLIMATE OF HIGH INTEREST RATES, HIGH CONSTRUCTION COSTS AND NOW A BIG ISSUE THAT ALSO CAME UP DURING [INAUDIBLE] IS THE HIGH INSURANCE COSTS.
THESE DEVELOPMENTS CANNOT BE BUILT OR REHABILITATED WITHOUT THE PROPERTY TAX EXEMPTION.
TO THE DEVELOPERS WHO COME TO PRESENT TO US, CAN YOU DO THIS PROJECT WITHOUT THE PROPERTY TAX EXEMPTION? AND THE ANSWER LATELY? YOU KNOW, IN THIS ENVIRONMENT IT'S ALWAYS NO, WE CANNOT.
FURTHER, THE AMOUNT OF TOTAL TAX EXEMPTIONS AT THIS POINT THAT HAVE BEEN GRANTED AMOUNT TO ABOUT $6 MILLION, WHICH IS ONE TENTH OF 1% OF THE CITY BUDGET AND I AGREE WITH MEMBER MENDELSOHN AND THE OTHER MEMBERS THAT HAVE MADE THE POINT THAT OBVIOUSLY THE CITY DOES NEED TO FIGURE OUT, YOU KNOW, HOW MUCH OF YOUR BUDGET CAN BE APPLIED TO PROVIDING AFFORDABLE HOUSING, AND THERE'S THIS HUGE NEED.
AND THAT'S A DECISION FOR THE COUNCIL TO MAKE AND THEN I WANT TO MAKE A REALLY IMPORTANT POINT.
THE WHOLE REASON THAT THERE IS THE STATE STATUTE THAT PROVIDES FOR HOUSING FINANCE CORPORATIONS IS THAT THE STATE AND THE FEDERAL GOVERNMENT, FOR THAT MATTER HAVE DECIDED THAT THE BEST WAY TO PROVIDE THESE UNITS IS A PUBLIC PRIVATE PARTNERSHIP.
EVERY ONE OF THESE PROPERTIES THAT WE'VE PARTICIPATED IN IS A PUBLIC PRIVATE PARTNERSHIP.
WELL, ANYONE WHO KNOWS WHAT IT'S LIKE TO BE IN THE REAL ESTATE FIELD KNOWS THAT YOU HAVE GOT TO BE NIMBLE TO TAKE ADVANTAGE OF WHAT GOES ON IN REAL ESTATE. WE SAW HOW INTEREST RATES, LIKE WENT FROM, YOU KNOW, A, YOU KNOW, BASICALLY A FEDERAL FUNDS RATE OF CLOSE TO ZERO TO A FEDERAL FUNDS RATE OF OVER 5% IN THIS MINUSCULE AMOUNT OF TIME AND EVERYBODY HAS TO BE NIMBLE AND BE ABLE TO TAKE ADVANTAGE OF THAT.
ALSO, IF YOU'RE A SELLER OF A PROPERTY.
YOU'RE NOT GOING TO SIT AROUND AND WAIT A LONG TIME FOR YOUR PURCHASER TO BE ABLE TO CLOSE ON THE PURCHASE OF THAT PROPERTY, ESPECIALLY IF YOU HAVE ANY OTHER OPTION.
SO I THINK IT'S REALLY IMPORTANT TO KEEP IN MIND THAT THE DEVELOPERS WHO COME TO THE CITY OF DALLAS EXPECT THE CITY OF DALLAS TO BE NIMBLE IN BEING ABLE TO WORK WITH THEM AND SO I GUESS I'M GOING TO STRONGLY ADVOCATE FOR NOT PUTTING ANY RED LIGHTS, BECAUSE I THINK WE HAVE WORKED SO HARD TO DEVELOP RELATIONSHIPS WITH THE DEVELOPERS WHO DESIRE TO AND ARE CAPABLE OF
[02:25:07]
DOING AFFORDABLE HOUSING, THAT WE WOULD JUST HATE TO SEE THEM THINK, OH, WE CAN'T REALLY RELY UPON THE CITY OF DALLAS TO WANT TO WORK WITH US.SO I THINK THAT'S REALLY CRITICAL.
I THINK ANOTHER THING THAT I'VE HEARD IS THAT YOU WANT TO BE VERY CAREFUL THAT THERE ARE ENOUGH EYES ON THESE DEALS THAT YOU DON'T NEED TO WORRY ABOUT THEM, BASICALLY AND I WOULD FEEL THE SAME WAY, BUT LET'S JUST LOOK, FOR EXAMPLE, AT A LIKE LIHTC PROPERTY WHICH YOU JUST HEARD ABOUT.
WHERE ARE ALL THE EYES? FIRST, THERE'S THE DEVELOPER.
THEY'RE NOT GOING TO TRY TO DO THE DEAL IF THEY DON'T THINK IT'S GOING TO WORK.
OKAY AND THESE ARE THE EXPERTS IN THE FIELD.
THE LENDER IS NOT GOING TO LEND THE FUNDS.
IF THEY DON'T THINK THIS IS A GOOD, FEASIBLE PROJECT, THEN THERE'S THE TAX CREDIT INVESTORS.
YES, THEY'RE GETTING A TAX CREDIT, BUT THEY ALSO WANT TO BE REPAID THEIR DOLLARS.
SO THEIR EYES ARE VERY MUCH AND THEIR ATTORNEY'S EYES ARE ON THESE DEALS.
THEN THERE'S THE TDHCA THAT YOU JUST HEARD FROM.
THEN THERE'S THE DHFC FINANCIAL ADVISOR, HILLTOP.
THEY ARE FINANCIAL ADVISOR THROUGHOUT THE STATE OF TEXAS, AND THEY HAVE THEIR PULSE ON, YOU KNOW, HOW THESE PROPERTIES SHOULD BE SET UP. YOU KNOW WHAT? WHAT PORTIONS OF THE FUNDS SHOULD COME BACK TO THE HOUSING FINANCE CORPORATION? WHAT PORTIONS OF THE FUNDS NEED TO BE PAID TO? NOW, THERE ARE OFTEN GAP FINANCING ENTITIES.
SO OF COURSE, WE USE BRACEWELL AND THEY'VE BEEN FANTASTIC BOND COUNSEL.
THEN THERE'S THE DHFC LEGAL COUNSEL, OUR OUTSIDE ATTORNEYS.
THEY AGAIN ARE KIND OF CONSIDERED TO BE THE EXPERTS FOR THE ENTIRE STATE OF TEXAS ON HOW HOUSING FINANCE CORPORATIONS SHOULD OPERATE AND HOW TO PROTECT THE HOUSING FINANCE CORPORATION AND THE CITY FROM ANY RISK AND THEN WE HAVE THE CITY ATTORNEY'S OFFICE WHO CAN ADVISE US, HAVE THE EXPERTISE ON TOMA AND A LOT OF OUR GOVERNANCE OBLIGATIONS.
SO I'M HOPING THAT I CAN ASSURE YOU A LITTLE BIT THAT WE HAVE MANY EYES ON THESE DEALS.
WE HAVE NOT GONE FORWARD WITH ANY DEVELOPMENT UNTIL WE HAVE UNTIL IT HAS COME BEFORE YOU, THE HOUSING COMMITTEE, AND THEN HAS GONE TO THE FULL COUNCIL FOR APPROVAL. SO YOU HAVE THAT TO REASSURE YOU AND THEN I WANT TO TALK A LITTLE BIT ABOUT THE BYLAWS, BECAUSE I KNOW YOU'RE CONSIDERING THAT THEY WERE EXTENSIVELY REVISED IN 2018.
IT WAS A VERY COLLABORATIVE PROCESS BETWEEN THE CITY ATTORNEY'S OFFICE, THE HOUSING DEPARTMENT STAFF AND THE HOUSING FINANCE CORPORATION, AND I WOULD LIKE TO REQUEST THAT IT BE DONE THE SAME WAY.
WE KNOW WHAT THINGS MAY HAVE BEEN ISSUES FOR US.
YOU KNOW WHAT THINGS MAY HAVE BEEN ISSUES FOR YOU.
SO WHAT DID WE DO IN 2018 THAT MAYBE YOU DON'T NEED TO WORRY SO MUCH ABOUT? WE MADE THE DHFC SUBJECT TO TOMA.
WE REQUIRED THAT EACH COUNCIL MEMBER APPOINT ONLY ONE BOARD MEMBER.
YEARS AGO, IT USED TO BE SOMETIMES ONE COUNCIL MEMBER WOULD APPOINT MORE THAN ONE BOARD MEMBER.
WE DID REQUIRE THAT IF THE DHFC CHOSE TO HIRE ITS OWN STAFF, WHICH WE JUST DID, LIKE A COUPLE OF MONTHS AGO, THAT A LIAISON FROM THE HOUSING DEPARTMENT WOULD ATTEND ALL MEETINGS AND RIGHT NOW THEY'RE CALLING THAT AN EX-OFFICIO BOARD MEMBER DOESN'T MATTER TO US WHETHER IT'S CALLED LIAISON OR EX-OFFICIO BOARD MEMBER.
WE APPRECIATE HAVING THAT TAKE PLACE.
WE HAVE A TERM LIMIT FOR BOARD MEMBERS.
WE PROVIDE FOR REIMBURSEMENT OF EXPENSES FOR CITY STAFF SERVICES.
WE ADDED A CONFLICT OF INTEREST PROVISION TO GOVERN OUR BOARD MEMBERS.
[02:30:06]
SO THERE MAY BE SOME ADDITIONAL TWEAKS NECESSARY, BUT I THINK WE DID A LOT OF WORK IN 2018 THAT YOU CAN FEEL GOOD ABOUT AND THAT MAYBE DOESN'T NEED TO TO COME UP AGAIN AND SO BUT BUT MOST IMPORTANTLY, WE PROBABLY SHOULD HOLD OFF UNTIL WE KNOW WHAT, HOW THE STATUTE IS GOING TO CHANGE. OKAY.THEN WE GET TO THE NEXT BIG ISSUE AND THAT IS FUNDS WHICH HAVE BEEN ACCUMULATED BY THE DHFC.
I WANT TO ASSURE YOU THAT WE KIND OF HAD THIS FUND ACCUMULATION TAKE PLACE IN A VERY SHORT TIME PERIOD AND SO ALL OF A SUDDEN WE WERE LOOKING AROUND. BUT I WILL GO BACK TO SAY, WE'VE BEEN VERY DEDICATED TO MAKING SURE THAT AS MUCH FUNDS THAT CAN COME BACK TO THE CITY DO COME BACK TO THE CITY AND BECAUSE WE'VE BEEN SO SUCCESSFUL AT THAT, ALL OF A SUDDEN WE'VE GOT A LOT OF FUNDS.
AND SO ANOTHER TOPIC WHERE THERE WAS A PANEL AT [INAUDIBLE] WAS BECAUSE OTHER HFC'S LIKE US HAVE ACCUMULATED SOME FUNDS, AND SO THEY THERE WAS A WHOLE PANEL THAT SPOKE ABOUT SOME OF THE THINGS THAT THEY HAVE BEEN USING THEIR FUNDS FOR.
AND I KNOW MY FEELING IS, AND I HOPE THAT I SPEAK FOR THE BOARD, WE'RE HERE.
WE WANT TO USE THOSE FUNDS HOWEVER YOU WANT THEM USED, YOU KNOW, AND WE WILL DO EVERYTHING WE CAN TO MAKE THOSE FUNDS AVAILABLE FOR WHATEVER USES YOU DECIDE ON.
SO RIGHT NOW, THOSE FUNDS CAN AMOUNT TO ABOUT $17 MILLION.
NOW, THE STATE STATUTE DOES REQUIRE THAT THE FUNDS BE USED FOR OUR MISSION OF PROVIDING DECENT, SANITARY AND SAFE HOUSING AT AFFORDABLE PRICES AND FOR CERTAIN CHARITABLE EXPENDITURES.
SO WE WOULD HAVE TO MAKE SURE TO COMPLY WITH THE STATUTE.
YOU KNOW IF THE CITY WOULD RATHER HIRE THE CONSULTANT, YOU KNOW, WE DON'T CARE.
WE'RE SO EXCITED THAT THOSE FUNDS CAN BE AVAILABLE FOR THE CITY TO USE.
SO I GUESS I WOULD CLOSE WITH THE CITY NEEDS THESE PARTNERSHIPS IN ORDER TO BE ABLE TO PROVIDE LARGE AMOUNTS OF AFFORDABLE UNITS, BUT THE DEVELOPERS HAVE CHOICES ABOUT WHERE TO PLACE THESE DEVELOPMENTS.
THEY CAN PUT THESE DEVELOPMENTS IN PLANO.
THEY CAN PUT THEM IN CARROLLTON.
THEY CAN PUT THEM IN GRAND PRAIRIE AND WE WANT TO HAVE THEM FEEL THAT WE ARE WELCOMING.
SO WE HAVE WORKED REALLY HARD THESE PAST YEARS, AND I WILL ESPECIALLY COMPLIMENT OUR GENERAL MANAGER, AARON IAQUINTO, WHO HAS JUST SPENT LOTS OF TIME WORKING TO DEVELOP THESE RELATIONSHIPS AND WE WANT TO IMPRESS THE DEVELOPERS WITH OUR EXPERTISE, PROFESSIONALISM AND RESPONSIVENESS.
THANK YOU. WE'RE GOING TO START WITH CHAIR MENDELSOHN.
THANK YOU. WELL, FIRST I WANT TO SAY THANK YOU FOR YOUR WORK.
THERE WERE A LOT OF CHANGES IN 2019.
I THINK THEY WERE REALLY IMPORTANT CHANGES AND WE STILL HAVE A FEW STEPS TO GO FURTHER THAN THAT.
AS FAR AS WAITING TO AMEND CHANGES TO THE BYLAWS, IT'S A VERY REGULAR PRACTICE OF THE COUNCIL TO GO BACK AFTER EVERY LEGISLATIVE SESSION AND MAKE CHANGES AS NECESSARY.
WE DO THIS ALL THROUGH THE YEAR.
AS PART OF THE LEGISLATIVE COMMITTEE, WE GET AN UPDATE ON HOW THOSE HAVE BEEN IMPLEMENTED.
FOR THE VARIOUS DEPARTMENTS BASED ON THE VARIOUS BILLS.
SO WAITING TO SEE WHAT HAPPENS DURING WHAT WILL ARGUABLY BE A VERY DIFFICULT SESSION.
I FEEL IT'S VERY UNNECESSARY AND WE NEED TO ACTUALLY PUSH FORWARD AS QUICKLY AS IS FEASIBLE WITH GOOD GOVERNANCE. WE HAVE HEARD OUR DIRECTOR OF HOUSING SHARE THAT THERE ARE CONCERNS.
I THINK MANY OF THEM WERE REALLY GEARED MORE TOWARDS THE PFC, BUT THIS IS STILL AN EVOLVING PROCESS AND THE HOUSING MARKET IS CONTINUING TO CHANGE AND WHAT YOU'RE DOING IS CONTINUING TO CHANGE.
SO I WILL SAY THERE WAS A LONG STANDING ISSUE OF NOT ENOUGH UNITS AVAILABLE FOR VOUCHER HOLDERS AND THIS IS A STORY THAT'S WIDELY KNOWN, BUT I ALSO THINK THE MARKET HAS CHANGED.
[02:35:03]
NOT HEARING THE SAME KINDS OF PROBLEMS THAT WE ONCE HAD WHERE SOMEONE COULD HOLD A VOUCHER BUT NOT FIND THE UNIT.TODAY THOSE UNITS ARE AVAILABLE.
THEY MAY NOT BE EXACTLY WHERE THEY WANT TO LIVE BUT THEY ARE NOW AVAILABLE.
I WANT TO GO TO PAGE 70, AND I JUST WANT TO CAUTION STAFF AND PRESENTERS ABOUT ABOUT THIS KIND OF AND IT WAS MENTIONED EARLIER AS WELL, THIS KIND OF PRESENTATION ABOUT DOLLARS.
I PERSONALLY DON'T WANT TO HEAR WHAT PERCENT OF THE BUDGET ANYTHING IS.
THE BUDGET IS ALMOST $5 BILLION.
IT IS A LARGE AMOUNT OF MONEY AND IT CAN DO VERY SIGNIFICANT THINGS.
SO THERE WAS AN EARLIER PRESENTATION WHERE THE SAME SORT OF PERCENTAGE WAS GIVEN.
I THINK THIS IS A TERRIBLE WAY FOR YOU TO EXPLAIN TO US ABOUT MONEY.
THAT IS NOT GOING TO GO OVER WELL.
ON THE HOUSING FINANCE CORPORATION SIDE.
BUT MOSTLY IT'S BECAUSE YOU HAVE TARGETED THE LOWER INCOME AMI'S AND MANY OF THE PROJECTS ARE 100% AFFORDABLE AS OPPOSED TO 50% MARKET.
EVEN IF SOME OF THE AFFORDABILITY HAS BEEN HIGHER AND LOWER.
RIGHT. SO SOME OF IT I THINK HAS BEEN BIFURCATED.
BUT IN GENERAL, I WOULD LIKE TO SAY TO YOU, I HOPE YOU WILL ENCOURAGE SMALLER DEVELOPMENTS INSTEAD OF LOTS AND LOTS OF UNITS ALL CONGREGATED TOGETHER THAT ARE 100% AFFORDABLE, BECAUSE YOU'RE A UNIQUE TOOL FOR US AND WE NEED YOU TO DO THAT AND IT IS SOMETHING THAT THE MARKET ISN'T NECESSARILY PRODUCING, ESPECIALLY AT THE LOWER AFFORDABILITY LEVELS AND SO IF YOU CAN CONCENTRATE IT IN ONE BUILDING, THEN ALL THOSE SERVICES CAN BE ON SITE AND PEOPLE CAN BE IN THE SAME PLACE AS OPPOSED TO THERE ARE SOME SERVICES NEEDED, SOME NOT NEEDED AND MAYBE NOT UTILIZED AT THE LEVEL THAT MAKES SENSE.
BUT I THINK YOU HAVE A REAL OPPORTUNITY TO HAVE THAT SORT OF CONGREGATE GROUP THAT CAN WORK TOGETHER TO TO PULL EVERYBODY UP. ON PAGE 79.
MARCY, YOU GO THROUGH THE NINE DIFFERENT.
IF YOU COULD I HAVE IT ACCORDING TO OUR PAGES, IF YOU COULD YOU KNOW WHICH PAGE IT IS OF OUR PRESENTATION. LIKE, I DON'T KNOW WHAT, 79.
OH. I'M SORRY. WHERE IT SAYS PROJECT OVERSIGHT AND YOU HAVE ALL THE BULLETS PROJECT OVER THIS? [INAUDIBLE]. THAT WAS 13.
[INAUDIBLE]. I JUST PRINTED IT OFF FOR HOURS.
SO YOU GO THROUGH ALL THOSE, WHICH IS GREAT, BUT IT'S ONLY THE FIRST BULLET WHERE CITY STAFF OR ELECTED PEOPLE WHO HAVE A FIDUCIARY DUTY ARE ACTUALLY INVOLVED. EVERYONE ELSE IS EITHER A VOLUNTEER OR AN INTERESTED PARTY TO THE DEAL AND I THINK THAT'S PART OF THE PROBLEM.
RIGHT? SO THE ONLY CHANGE THAT HAS HAPPENED IN THAT WAS TWO MONTHS AGO IS THAT WE DIRECTLY HIRED OUR GENERAL MANAGER, AND THEN THE BYLAWS ALREADY HAD PROVIDED FOR THAT, AND PROVIDED THAT WE WOULD HAVE A LIAISON, WHICH YOU COULD NOW CHANGE TO BE CALLED AN EX-OFFICIO BOARD MEMBER.
I WANT SOMEBODY TO BE A CITY STAFFER.
I WANT THEM TO BE DIRECTED THROUGH OUR OUR CITY MANAGEMENT AND I WANT THAT ACCOUNTABILITY.
BUT OUR STAFF DOES, AND WE COUNT ON THEM TO DO THAT AND SO AGAIN, HAVING YOUR OWN EMPLOYEE DOESN'T PROVIDE THAT GOVERNANCE THAT WE NEED AND SO THAT'S SORT OF THE THE ISSUE FOR ME.
IF I COULD I WOULD LIKE TO POINT OUT THAT THAT THIS IS NOT UNIQUE FOR THE HFC TO HAVE ITS OWN STAFF, THAT MANY OF THE OTHER LARGER CITIES IN TEXAS DO HAVE THEIR OWN STAFF.
WELL, THEY HAVEN'T HAD THE SAME KIND OF PROBLEMS THAT WE HAVE.
THE LAST. OKAY. SO LET ME GO BACK AND TELL YOU WHAT NUMBER WOULD BE 1211.
[02:40:09]
I MEAN, LIKE, I THINK THAT'S A REALLY GREAT DISTRIBUTION.I'M WONDERING IF YOU COULD TALK TO HOW THAT'S CHANGED OVER TIME.
MEANING, I THINK WE HAVE A LOT MORE MARKET RATE THAN YOU DID MAYBE JUST A COUPLE OF YEARS AGO.
IF YOU JUST TALK ABOUT HOW EACH OF THOSE AMI'S MAY HAVE CHANGED OVER TIME.
YES, I YOU KNOW, AND THAT'S WHAT I WAS TRYING TO SAY THAT I CAN'T EVEN REMEMBER.
CYNTHIA WOULD REMEMBER WHEN THE HOUSING POLICY GOT INSTITUTED, THAT WE SHOULD TRY TO HAVE MIXED INCOME. IS THAT WHAT YOU'RE TALKING ABOUT? MIXED INCOME PROPERTIES? WELL, I MEAN, WHERE SOME OF THEM ARE MARKET RATE, RIGHT? YOU'VE GOT ABOUT HALF THE UNITS MAYBE THAT ARE 60%, AMI RIGHT? I FEEL LIKE THAT NUMBER HAS CHANGED SIGNIFICANTLY FROM.
WHAT ARE YOU SAYING? LIKE 80%? OH, CORRECT. 60%, AMI CORRECT? DO YOU HAVE I MEAN, YOU HAVE A LOT MORE MARKET.
YES. [INAUDIBLE] BECAUSE THERE WAS A YOU KNOW, I HOPE THAT ONE WILL COME OUT OF THIS WORKSHOP IS THAT WE SHOULD BE WORKING HAND IN HAND.
WE CONSIDER OURSELVES CITY OF DALLAS VOLUNTEERS.
THAT WAS WHAT MOST OF US WERE LOOKING TO DO WHEN WE WENT ON TO THAT WEBSITE TO SIGN UP, TO TRY TO SERVE ON THE BOARD AND SO WHEN WE, WHEN IT, WHEN THAT POLICY GOT INSTITUTED TO TRY TO DO MIXED INCOME PROPERTIES WITH MARKET RATE UNITS, THEN WE STARTED.
SO I WOULD SAY THIS IS SOMETHING THAT I WOULD ASK CYNTHIA TO LOOK AT VERY CAREFULLY, BECAUSE WE HAVE THE PFC, WHICH BY DESIGN MEANS THERE WILL BE MARKET RATE AT LEAST 50%, THEN PERHAPS THAT'S NOT THE APPROPRIATE MISSION FOR YOU.
LIKE MAYBE YOUR TOOL SHOULD BE VERY MUCH ABOUT THE DEEPER AFFORDABILITY AND AS MUCH OF IT AS POSSIBLE COMPARED TO THE PFC, AND THAT DISTINCTION BEING THAT IT MUST BE 50% MARKET AND SO I HOPE THAT'S SOMETHING YOU'LL CONSIDER IN MY LAST ITEM IS SIMPLY ABOUT WHERE TO USE THOSE FUNDING.
THE LAST THING I THINK WE NEED A CONSULTANT FOR IS TO TELL US HOW TO SPEND MONEY.
THERE'S NOBODY ON THE CITY COUNCIL THAT DOESN'T HAVE A LOT OF IDEAS ON WHAT SHOULD BE SHOULD BE INVESTED IN AND THAT INCLUDES ADDITIONAL KINDS OF HOUSING AS WELL AS AGAIN, GOING BACK TO SOME SORT OF HOUSING PREVENT HOMELESS PREVENTION SERVICES.
I MEAN THAT THIS IS JUST A GAP WE HAVE IN OUR CONTINUUM AND I THINK HAVING THAT AS A DEDICATED FUND WOULD BE REALLY IMPORTANT.
I THINK ANOTHER THING TO CONSIDER MIGHT BE THAT SOME OF OUR PROPERTIES PROVIDE DAYCARE FACILITIES OR PRESCHOOL FACILITIES AND THERE WE WERE SO PLEASED TO LEARN THAT THERE ARE NOW SOME NON-PROFITS OUT THERE THAT ARE PROVIDING THOSE SERVICES AND SO IF WE CAN GET THE DEVELOPERS TO HAVE SOME PLACE FOR THEM TO BE HOUSED, THEY CAN PROVIDE THAT AND THAT'S JUST BEEN AN AMAZING THING.
I ALSO KNOW THAT THE CITY DOESN'T HAVE ENOUGH DOLLARS FOR HOME REPAIRS.
IT'S A VERY WORTHWHILE USE OF FUNDS IF IT'S MEETING SPECIFIC CRITERIA.
THERE SEEMS TO BE SORT OF A POPULARITY TO WANT TO GO THERE.
SO I DON'T WANT TO, LIKE, OVERCOMMIT TO SOMETHING JUST BECAUSE IT'S THE FLAVOR OF THE DAY.
SO IT DOESN'T SORT OF DISINTEGRATE.
[02:45:02]
THAT'S A PROBLEM.SO THERE'S GOT TO BE THAT BALANCE.
I'M NOT SURE WE'RE ACTUALLY AT A BALANCE POINT RIGHT NOW.
BUT I KNOW THAT WE HAVE LOTS OF DIFFERENT NEEDS FOR DOLLARS.
I WOULD PERHAPS ASK, INSTEAD OF HIRING A CONSULTANT AND SPENDING THE MONEY ON THAT YOU SIMPLY HAVE A CONVERSATION WITH CITY MANAGEMENT WHO COULD VERY QUICKLY IDENTIFY USES OF THOSE FUNDS.
THANK YOU. COUNCIL MEMBER WILLIS.
THANK YOU. I APPRECIATE THE REPORT AND THE WORK THAT'S BEEN DONE.
WHAT WAS THE CRITERIA FOR THE AWARD THAT YOU'VE WON? OH I THINK IT WAS TO REVITALIZE AN AREA, AND SO, YOU KNOW, IT'S WALKING DISTANCE FROM WESTMORELAND STATION AND.
SO AND TOUCHING ON SOMETHING YOU JUST SAID ABOUT SCHOOL AND CHILD CARE, IS THAT TORI MANNS, WHO'S THE CEO OF CHILD CARE GROUP, HAD SAID SOMETHING THAT HAS STUCK WITH ME EVER SINCE I HEARD IT FIVE WEEKS AGO, WHICH IS WE TEND TO TALK ABOUT DEVELOPMENT WITH LIVE, WORK, PLAY AND SHE SAID WE NEED TO MAKE IT START INTEGRATING LIVE, WORK, LEARN, PLAY AND I JUST I'VE TAKEN THAT INTO SO MANY CONVERSATIONS AND SO WHAT YOU'RE TALKING ABOUT BEGINS TO HELP WITH THE AUDIENCE WE'RE TARGETING AND THE FACT THAT BEING CLOSE TO, I MEAN, THERE MAY BE AVAILABILITY OF AFFORDABLE UNITS OR THOSE THAT ACCEPT A VOUCHER, BUT IF YOU ARE NOT CLOSE ENOUGH TO FOOD, CHILD CARE, TRANSIT, ETC..
EXACTLY. YOU'RE NOT NECESSARILY SOLVING IT AS COMPLETELY AS AS YOU COULD.
AND WHY DO WE EXPECT SOMEONE TO SIT AROUND WAITING FOR US TO SLOG THROUGH A PROCESS? AND SO WHEN IT COMES TO BEING NIMBLE, I DEFINITELY WOULD TASK OUR ASSISTANT CITY MANAGER AND OTHERS WITH ANY PLACE WE CAN CLOSE THAT TIMING AND ALSO HAVE A PRIVATE SECTOR MARKET UNDERSTANDING OF WHAT MAY HAPPEN IN HERE MAY BE A LITTLE DIFFERENT SOMETIMES THAN THE OUTSIDE WORLD, AND THAT WE'LL LOSE AND THAT MEANS SOME RESIDENTS LOSE.
YEAH, IT'S LIKE A DROP IN THE OCEAN.
SO THAT'S A REAL, VERY REAL PART OF THE EQUATION THAT A COUNCIL MEMBER NEEDS TO LOOK AT.
BUT A QUESTION, A COUPLE OF QUESTIONS.
DO WE KNOW? ON SLIDE THREE, YOU TALK ABOUT THE BENEFIT TO THE CITY AND THIS ONE OF THE BENEFITS MENTIONED IS RENT SAVINGS CONTRIBUTING TO A BRIDGE TO HOMEOWNERSHIP.
DO WE KNOW ANYTHING QUANTIFIABLE ABOUT THAT.
ARE PEOPLE TAKING THIS? AND THEY ARE USING IT AS A BRIDGE TO HOMEOWNERSHIP, OR IS THAT JUST AN ASSUMPTION? WE DON'T HAVE ANY DATA SPECIFIC ON THAT.
I CAN CHIME IN JUST ANECDOTALLY ON THAT.
I HAVE SPOKEN WITH PROPERTY MANAGERS IN THE, IN OUR PROJECTS AND THEY HAVE SAID, YEAH, SOME OF THE MOVE OUTS ARE DUE TO PEOPLE ACTUALLY BUYING HOMES AND SO I WOULD LIKE TO THINK THAT WE'VE CONTRIBUTED A LITTLE PART TO THAT.
THAT'S GREAT. BUT YOU KNOW, WE LIVE IN A DATA DRIVEN WORLD AND SO IF THAT'S TRACKABLE, I MEAN, AS THEY'RE GOING THROUGH THEIR YOU KNOW, MOVE OUT PROCESS, UNDERSTANDING THAT NEXT STEP. I MEAN, IF IT IS GOING TO HOME OWNERSHIP, THAT WOULD BE A GREAT NUMBER FOR US TO BE ABLE TO POINT TO AND CONTINUING TO INVEST IN THESE PROJECTS.
SO YOU AND I TEND TO AGREE WITH THE I DON'T NECESSARILY THINK WE NEED TO PAUSE ON BOARD GOVERNANCE.
WITH REGARD TO WAITING FOR THE LEGISLATURE.
I MEAN, WE'LL WORK THROUGH THAT PROCESS AND SEE WHAT THE IMPLICATION IS.
BUT YOU MENTIONED GOING TO THE CONFERENCE TALHF SOMETHING LIKE THAT.
TALHF. TEXAS ASSOCIATION OF LOCAL HOUSING FINANCE AGENCY.
SO IN MAKING YOUR OBSERVATIONS AROUND BOARD GOVERNANCE AND YOU REFERENCED 2018, IS THERE ANYTHING
[02:50:01]
BEING I KNOW WE'VE GOT AN UPCOMING PRESENTATION THAT GETS AT SOME BOARD GOVERNANCE.JUST IN RECONCILING THIS, I'M TRYING TO SEE, IS THERE ANYTHING THAT WE WOULD POINT TO PRETTY QUICKLY TO SAY, LET'S GO ON AND CHANGE THAT, AND THEN WE'LL SEE WHAT HAPPENS AFTER THE LEGISLATURE. ALSO I'M GOING TO POINT OUT THAT GENERAL MANAGER IAQUINTO IS ON THE BOARD OF TALHF AND WAS ONE OF THE SPEAKERS AT THE CONFERENCE, SO KUDOS TO HIM. BUT I THINK THAT WHAT I'VE NOTICED FROM GOING TO TALHF IS THAT SOME OF THE STRONG, WHAT I'M GOING TO CALL KIND OF THE STRONGEST HFCS IN TEXAS DO HAVE THEIR OWN STAFF.
I THINK THAT IT JUST ENABLES THEM TO GO FULL STEAM AHEAD WITH JUST THEIR MISSION. BUT WHAT ABOUT GOVERNANCE? I DON'T KNOW THAT WE'VE HAD.
WELL, WE DON'T HAVE TO SOLVE IT NOW, BUT I'M JUST POINTING OUT THAT WE'VE GOT A DECK COMING UP.
[INAUDIBLE]. I THINK THAT GETS AT SOME BYLAWS REVIEW AND SOME OBSERVATIONS THAT MIGHT STRENGTHEN IT FROM THE CITY'S PERSPECTIVE AND SO COMPARED WITH WHAT YOU MIGHT HAVE LEARNED VERSUS WHAT YOU'VE OUTLINED HERE AND THE CHANGES THAT WERE RECENTLY MADE, I'M JUST LOOKING FOR THAT GAP AND ACTUALLY THEY HAVE A SLIDE ABOUT THE GAPS.
SO AND I WOULDN'T BE OFFENDED THAT THIS IS BEING LOOKED AT AND I DON'T KNOW ABOUT THE COMMUNICATION PROCESS, BUT I MEAN, IT'S IMPORTANT FOR US TO, LOOK AT IT IN THE SEATS THAT WE SIT IN AS WELL.
BUT THANK YOU VERY MUCH FOR SHARING DEPTH ON THIS.
THANK YOU. NO. EXCUSE ME, NO MAJOR QUESTIONS.
JUST CONGRATULATIONS ON THE AWARD.
AND WASN'T IT? WEREN'T WE AT A RIBBON CUTTING TOGETHER WHERE THEY DID HAVE THAT ON SITE CHILDCARE? YEP. YEAH.
YES. YEAH. THANK YOU ALL FOR THE PRESENTATION.
AS YOU TALK ABOUT DALLAS BEING COMPETITIVE WITH OTHER NEIGHBORING CITIES, WHAT OTHER CITIES AROUND DALLAS ARE PARTICIPATING IN HFC? PLANO, GRAND PRAIRIE? ARLINGTON, I THINK ROWLETT.
FORT WORTH? SURE AND SO I'M JUST THINKING, YOU KNOW, AS THERE'S FOLKS THAT DO HAPPEN TO LIVE IN DALLAS, BUT THEIR WORK MIGHT BE IN PLANO OR IN DESOTO AND, YOU KNOW, TRYING TO MAKE SURE THAT THEY'RE OF COURSE, WE WANT THE HOUSING AND THE JOBS IN DALLAS, BUT ALSO MAKING IT CONDUCIVE IN FOR THAT PERSON THAT'S LOOKING TO WORK OR TO LIVE NEAR NEAR THE WORK.
WHAT OTHER THINGS DO WE LOOK AT THAT BENEFIT THE CITY OF DALLAS WHEN WE HAVE A HFC PROJECT COME TO OUR NEIGHBORHOOD? SO FOR ME, ONE OF THE THINGS THAT WE'RE LACKING IS BEING ABLE TO PROVIDE AFFORDABLE UNITS IN THE REALLY BURGEONING AREAS OF THE CITY.
FOR EXAMPLE, CAN WE PROVIDE SOME AFFORDABLE UNITS IN UPTOWN? CAN WE PROVIDE SOME AFFORDABLE UNITS? I WAS AS I WAS DRIVING TO CITY HALL TODAY, YOU KNOW, I'M PASSING THAT HUGE CONSTRUCTION.
WHERE THEY'RE GOING TO HAVE GOLDMAN SACHS.
SO WE WOULD LOVE TO BE ABLE TO PROVIDE SOME OF THOSE UNITS.
IN ORDER TO DO THAT, THOSE ARE NOT GOING TO BE LIHTC.
THOSE ARE GOING TO HAVE TO BE WHERE WE DO A PARTNERSHIP, AND IT HAS TO FOR THEM TO WORK FOR THOSE FOR SOMEONE TO HAVE AN APARTMENT PROPERTY WHERE THEY CAN LOWER THE RENTS FOR SOME OF THEIR TENANTS, THEY NEED A LOT OF HELP TO BE ABLE TO DO THAT.
WE HAVE DEVELOPERS HERE IN DALLAS THAT DO WANT TO DO THAT, BUT WE HAVE TO HELP THEM.
WE HAVE TO HELP THEM BY GIVING THEM THE TAX EXEMPTION.
WE AND WHAT THAT ENTAILS IS THAT WE MUST BE A PARTNER.
WE HAVE TO BE THE GROUNDLESS OR AND WE HAVE TO BE THE GENERAL PARTNER IN THE DEAL.
THANK YOU. WHEN WE'RE LOOKING TO FURTHER THAT 30% AMI WHAT TOOLS ARE OUT THERE THAT WE HAVE NOT TAKEN ADVANTAGE OF? FOR EXAMPLE, ARE WE ABLE TO USE CDBG DOLLARS? AND THAT'S BY NO MEANS AM I SUGGESTING THAT I'M JUST THROWING A SCENARIO OF WHAT ELSE ARE WE NOT TAPPING INTO CURRENTLY?
[02:55:08]
WELL WE WOULD HAVE LOVED FOR THERE TO BE MORE DOLLARS IN THE BOND ISSUANCE THAT WAS JUST APPROVED THAT COULD HELP TO PROVIDE THOSE KIND OF UNITS.I WILL ALSO LAUD ONE OF OUR PROPERTIES IS IN MY DISTRICT 11.
AND IT'S ALL ONE BEDROOM UNITS.
WASN'T THAT 100% OF THE UNITS AT 30% AMI.
IT WAS A REALLY IT WAS VERY AFFORDABLE AND IT WAS A REHAB AND I CAN'T REMEMBER.
AARON, REMIND ME IF THEY USED THINGS OTHER THAN JUST THE TAX EXEMPTION.
DID THEY HAVE CDBG AND HOME? I CAN'T RECALL, BUT ALMOST EVERY SINGLE PROPERTY THAT ARE WE TALKING ABOUT? [INAUDIBLE]. NO, I'M TALKING ABOUT THE CITIZEN.
OH, YEAH. YES. THEY DID USE CDBG.
MY LAST QUESTION IS GOING TO BE DOES THE BOARD HAVE A GOAL, A METRIC OF HOW MANY UNITS OR HOW MANY COMPLEXES AS FAR AS APPLICATIONS YOU GUYS SET A GOAL OF, I'M GOING TO LET I THINK, AARON SPEAK TO THAT BECAUSE, AARON, THE WAY WE WORK IS THAT AARON, THE DEVELOPERS FILL OUT THE APPLICATION AND AARON IS OUR FIRST REVIEW OF THAT APPLICATION AND SO IT DOESN'T EVEN COME BEFORE OUR BOARD IF AARON DOESN'T THINK THAT IT IS IN COMPLIANCE WITH THE HOUSING CITY, YOU KNOW, CITY HOUSING POLICY AND ALL THOSE OTHER CONSIDERATIONS.
THANK YOU, MARCI AND IF YOU'LL LET ME EXPLAIN A LITTLE MORE DEEPLY.
SO I THINK OUR VALUE HERE AND I KNOW IT'S BEEN MENTIONED BEFORE IN SOME OF THE OTHER DISCUSSIONS, IS THAT THE CITY COUNCIL HAS APPROVED EVERY PROJECT THAT'S GOTTEN TO THEM.
THAT'S BECAUSE THE BOARD AND STAFF AND FOLKS LIKE MYSELF, WE TRY TO FILTER OUT ALL OF THE STUFF.
THAT IS A WASTE OF TIME, RIGHT? AND SO WE RELY ON OUR EXPERTISE, ON OUR, KNOWLEDGE OF THE DEVELOPMENT CYCLES, OUR KNOWLEDGE OF CERTAIN AREAS OF THE CITY GEOGRAPHICALLY AND AS WELL AS OUR KNOWLEDGE OF FINANCIAL MARKETS AND TIMELINES.
SO DEVELOPERS ARE ABLE TO COME TO ME AND OUR BOARD AND SAY, HEY, AARON, WHAT DO YOU THINK ABOUT THIS PROJECT? I'M THINKING OF SENDING AN APPLICATION AND I CAN SAY, HEY, IN THAT AREA OF TOWN, DON'T EVEN WASTE YOUR TIME.
THE BOARD WILL DO A LOT MORE DUE DILIGENCE AND ACCORDING TO, YOU KNOW, WHATEVER COMMUNICATIONS THEY HAVE WITH THEIR COUNCIL MEMBERS, THEY TRY TO DO WHAT'S BEST AND WHAT'S THE WILL OF THEIR CONSTITUENTS.
RIGHT. SO, AARON, I THINK IT WOULD BE HELPFUL TO GET THOSE FIGURES OF HOW MANY APPLICATIONS DO GET REJECTED, BECAUSE HONESTLY, FROM MY SEAT IT FEELS LIKE, LET'S APPROVE.
SO IT WOULD BE HELPFUL FOR US TO KNOW HOW MANY APPLICATIONS GET REJECTED OR HOW MANY ARE SUBMITTED.
AND SO I WOULD LIKE TO SEE HOW MANY ARE ACTUALLY REJECTED AND IF THERE'S ANY INCENTIVE, WHAT SORT OF INCENTIVES ARE THERE FOR THE STAFF TO APPROVE THE NUMBER OF APPLICATIONS THAT COME THROUGH? AND I CAN SAY ANECDOTALLY, YOU KNOW, THESE AREN'T REAL NUMBERS.
THANK YOU. ANY OTHER QUESTIONS FROM COMMITTEE MEMBERS.
GO AHEAD, COUNCILMEMBER WILLIS.
I JUST WANT TO POINT OUT THAT WE'VE HAD A COUPLE OF BOND PROJECTS IN DISTRICT ONE AND DISTRICT 13, THAT ARE NEW CONSTRUCTION LIBRARY AND I WOULD LOVE TO AND I'VE MENTIONED THIS TO MR. ESQUINA. I MEAN, WE'VE TALKED ABOUT THE FACT THAT YOU'VE GOT BONDS DOLLARS TO CONSTRUCT A NEW LIBRARY.
THE IDEA IS MIXED USE, BUT THIS GIVES US OPPORTUNITY.
[03:01:55]
AND THAT THEY HAD ALL OF THE EYES ON THEM AND DILIGENCE DONE.THANK YOU SO MUCH. WE'LL GO AHEAD AND HAVE THE NEXT PRESENTER COME TO THE FRONT.
BUT WE'RE GOING TO TAKE A QUICK PAUSE.
AS ANOTHER CITY OR COUNTY OR HFC CRACKS THE CODE AND I THINK FROM MY VIEW, UNEQUIVOCALLY, THE ANSWER IS NO.
[03:05:05]
EVERYONE'S ASKING QUESTIONS, EVERYONE'S MAKING PROGRESS, AND A LOT OF PEOPLE ARE LOOKING AT SOME OF THESE SAME QUESTIONS AND COMING UP WITH CREATIVE SOLUTIONS AND ONE THING I'D REALLY LIKE TO SAY ABOUT HFCS FROM KIND OF THE BIG PICTURE IS THAT COMPARED TO, YOU KNOW, BACK WHEN I DID GENERAL COUNSEL WORK, WORKING FOR AN RDA, AN EDC, A TAX INCREMENT ZONE, HFCS AND PFCS SPECIFICALLY TO ME ARE A TOOL THAT LOCAL GOVERNMENTS HAVE TO KIND OF COMPETE WITH THE PRIVATE SECTOR.SO I THINK THERE'S A NATURAL TENSION BETWEEN, YOU KNOW, WHETHER IT'S ATTORNEYS, STAFF OR BOARDS, THERE'S A NATURAL TENSION BETWEEN WHAT THE HFCS ARE TRYING TO DO WHEN THEY'RE LOOKING AT A DEAL COMPARED TO WHAT THE CITY AND THE HOUSING DEPARTMENT AND THE CITY ATTORNEY'S OFFICE OR THEIR OUTSIDE COUNSEL ARE LOOKING AT ON A DEAL.
SO OFTEN THEY ARE REALLY INTEGRATED, RIGHT? BECAUSE THEY HAVE TO BE SO THAT THE HOUSING STAFF IS ALSO HAVING TO BE THE HFC STAFF, AND THAT CAN EVEN BE TRUE ON THE ATTORNEY LEVEL AS WELL.
AND AS I'VE SAID ABOUT THE DIFFERENT ROLES THAT EVERYONE'S PLAYING, I THINK YOU SEE A LOT OF TENSION BETWEEN THE HFC DESIRE TO BE COMPETITIVE WITH NOT JUST OTHER HFCS, BUT THEY'RE ALSO HAVING TO COMPETE WITH PRIVATE SECTOR NON-PROFITS.
THERE'S MORE THAN ONE WAY TO GET A TAX EXEMPTION HERE AND SO THEY ARE REALLY HAVING TO STAY NIMBLE.
WHEREAS ON THE CITY STAFF SIDE, THEY'RE REALLY LOOKING AT, YOU KNOW, THE FEDERAL COMPLIANCE, THINGS LIKE YOUR DHP 33 THAT ARE REALLY SOPHISTICATED SET OF GUIDELINES FOR THOSE PROJECTS.
SO I THINK THERE'S JUST A DIFFERENT THOUGHT PROCESS SOMETIMES.
SO IT CAN BE VERY USEFUL, BUT IT CAN ALSO BE CHALLENGING WHEN THE STAFF ARE PLAYING MULTIPLE ROLES.
SO MY WORK IN FEDERAL PROCUREMENT, SOMETHING WE SEE A LOT OF, IS THAT HFCS ARE.
SO WHEN THE HFC GETS TREATED AS AN EXTENSION OF A LOCAL GOVERNMENT, IT'S REALLY HAMSTRINGING THE HFCS ABILITY TO USE SOME OF ITS STRENGTHS AS A NONPROFIT. AT THE SAME TIME, YOU STILL HAVE TO LOOK AT IT FROM A REGULATORY ENTITY PERSPECTIVE AND MAKING SURE THAT IT COMPLIES WITH ALL OF THE CITY REQUIREMENTS.
SO ON THE ATTORNEY SIDE, YOU KNOW, I'M REALLY LOOKING FOR MY CLIENT ON WHAT IS IS HAPPENING HERE.
FROM EACH OF THE DIFFERENT ROLES TO MAKE SURE THAT THEY'RE, TREATED SEPARATELY.
SO, FOR INSTANCE, YOU KNOW, HFC STAFF, IF THEY HAVE THEIR OWN STAFF OR HFC BOARDS, AREN'T NECESSARILY GOING TO BE PAYING A LOT OF ATTENTION TO THINGS LIKE ZONING APPROVALS AND SUCH.
SO THERE'S A LOT OF EYES ON THE DEALS.
BUT WHERE WE TEND TO SEE A GAP IS IN THE GOALS THAT YOU WANT THE HFC TO MEET, AS OPPOSED TO THE GOALS THAT THE HOUSING DEPARTMENT OR THE CITY AS A WHOLE ARE TRYING TO MEET.
SO WE HAVE SEEN A COUPLE OF HFC USE A METHOD OF SORT OF COMMUNICATION BETWEEN THE BIGGER LOCAL GOVERNMENT AND THE HFC IN THE FORM OF DEAL GUIDELINES.
THOSE DEAL GUIDELINES ARE KIND OF ON A POLICY LEVEL.
SO I'VE HEARD DISCUSSION OF NUMBER OF UNITS.
YOU'VE TALKED ABOUT AMI BANDS.
THERE'S BEEN TALK ABOUT SPECIFIC LOCATIONS.
I'D LIKE TO POINT OUT A COUPLE OF OTHER FACTORS THAT YOU COULD CONSIDER IF YOU CHOSE TO, WHETHER IT'S IN DEAL GUIDELINES OR BIGGER POLICIES OR EVEN GOVERNANCE AND THAT IS SUSTAINABILITY OF YOUR HFC IN GENERAL.
SO HFCS CAN ACTUALLY BRING IN THAT REVENUE.
PROJECT SUCCESS IS ANOTHER ONE.
IT'S GREAT TO HAVE A HUGE NUMBER OF AFFORDABLE UNITS AND SOME GREAT INCOME BANDS.
[03:10:01]
BUT IF A COUPLE OF YEARS IN THE PROJECT IS FAILING OR HAVING A LOT OF CODE ENFORCEMENT ISSUES IT'S UP TO THE CITY COUNCIL AND WHATEVER POLICIES YOU PUT IN PLACE TO DECIDE IF YOU THINK THAT PROJECT STILL COUNTS AS A SUCCESS OR NOT AND THE SAME IS TRUE ABOUT WHETHER IT MAKES IT THROUGH CONSTRUCTION COMPLETION.SOMETHING ELSE WE LIKE TO LOOK AT FROM THE ATTORNEY'S SIDE IS IN NEGOTIATION, NOT JUST WHETHER THE OVERALL NUMBER OF UNITS IS 100% AFFORDABLE OR MIXED INCOME.
WHAT I'M LOOKING FOR FOR A CLIENT IS ARE THEY GETTING SOMETHING EXTRA THAT THEY WOULDN'T GET OTHERWISE? SO, FOR INSTANCE, IF YOU'VE GOT A LITTLE PROPERTY AND IT'S ALREADY GOT A REGULATORY AGREEMENT ON IT FOR WHATEVER THOSE THOSE INCOME DISTRIBUTIONS ARE, UNLESS THERE'S DEEPER AFFORDABILITY ADDED BY INVOLVING THE HFC OR INVOLVING THE CITY OR YOU'RE LOOKING AT LONGER TERM AFFORDABILITY, RIGHT? THAT'S WHERE YOU SEE THINGS LIKE THE LONG TERM DEED RESTRICTIONS.
SOMETIMES YOU'LL SEE MULTIPLE SETS OF DEED RESTRICTIONS, ONE FOR THE FEDERAL FUNDING, SO THAT YOU'VE GOT THE HEAVIER COMPLIANCE FOR A SHORTER PERIOD, FOLLOWED BY THINGS LIKE THE [INAUDIBLE] THAT COME FROM A GROUND LEASE FROM THAT PROPERTY TAX EXEMPTION.
SO I THINK THOSE ARE OTHER WAYS YOU CAN REALLY LOOK AT WHETHER A PROJECT IS SUCCESSFUL AND WHAT THE VALUE ADD IS FROM AN HFC OR HOUSING DEPARTMENT. AS FAR AS MEETING YOUR YOUR BIG CITY GOALS SOMETHING I WOULD SAY TO AVOID IF AT ALL POSSIBLE, JUST BECAUSE I HAVE CLIENTS ASK THIS ALL THE TIME.
AS SPECIAL COUNSEL, IT HAPPENS FREQUENTLY THAT I GET HANDED A DOCUMENT FROM ANOTHER CITY AND THEY SAY, WELL, CAN WE JUST ADOPT THIS? OFTEN I WROTE THAT DOCUMENT AND I CAN TELL YOU THAT EVERYONE HAS THEIR OWN STRUGGLES AND OPPORTUNITIES AND WHEN YOU JUST COPY SOMEONE ELSE'S, WHATEVER IT IS, YOU OFTEN END UP JUST TREATING ONE SET OF ISSUES FOR ANOTHER.
SO I REALLY THINK WORKSHOPS LIKE THIS ARE FANTASTIC, WHERE YOU CAN TALK THROUGH WHAT'S WHAT'S HAPPENING AND THEN THE LAST THING I'D WANT TO TALK ABOUT IS JUST, YOU KNOW, WE'VE TALKED ABOUT A COUPLE OF DIFFERENT TOOLS.
BYLAWS HANDLE CORPORATE GOVERNANCE.
THOSE ARE USUALLY ABOUT STAFF PROCESSES.
THE GENERAL PARTNER YOU KNOW AND THAT'S THE HFC IS A DIFFERENT KIND OF COMPLIANCE.
SO REALLY THERE'S A LOT OF DIFFERENT SETS OF EYES LOOKING AT DIFFERENT THINGS AND I THINK YOU SAW THAT IN IN LOOKING AT FOR INSTANCE, THE TDHCA QAP AND THEN THE LAST THING I'LL SAY IS THERE WAS SOME DISCUSSION ABOUT CITY ATTORNEY'S OFFICES AND WHAT ROLE THOSE PLAY.
I'LL TELL YOU, I DID AN ETHICS PRESENTATION AT A CONFERENCE NOT LONG AGO.
AND THAT WAS REALLY BASED ON SOME EXPERIENCES I HAD WHERE YOU CAN STILL BE WITHIN THE CONFLICT'S RULES AND YET NOT BE TERRIBLY COMFORTABLE DEPENDING ON THE SITUATION. THERE'S A ROLE FOR A LOT OF DIFFERENT PEOPLE.
YOU'RE SEEING THAT WITH A LOT OF DIFFERENT CONSULTANTS AS WELL.
DIFFERENT CITIES CHOOSE TO HAVE US DO THAT IN DIFFERENT WAYS, DEPENDING ON HOW THEIR HFC AND HOUSING DEPARTMENT AND CITY ATTORNEY OFFICE RELATIONSHIPS ARE STRUCTURED.
BUT YOU KNOW, I THINK THESE DEALS REQUIRE SOME REALLY SPECIALIZED KNOWLEDGE TO, TO ANSWER THOSE AND I THINK I'M OUT OF TIME. SO THANK YOU FOR LETTING ME JUST GO OFF THE CUFF THERE.
COUNCIL MEMBER GRACEY, MENDELSOHN.
OKAY, SO FIRST OFF I THINK YOU HAD ACTUALLY THE MOST INTERESTING PRESENTATION TODAY, SO THANK YOU.
CLEARLY YOU'RE VERY KNOWLEDGEABLE ABOUT THIS.
WHO IS PAYING YOU? LIKE YOU'RE HERE, BUT ARE YOU BEING PAID BY THE CITY, BY ANY OF OUR CORPORATIONS OR YOU'RE JUST HERE AS A RESOURCE? OH, I CAN RESPOND TO THAT.
COUNCILWOMAN. SO I INVITED DERA TO BE THE THIRD PARTY CONVERSATION ON HFCS.
DARA IS OUR OUTSIDE COUNSEL THROUGH OUR CAO'S OFFICE.
[03:15:05]
SHE HELPS US WITH OUR DEVELOPMENT DRAFTS, CONTRACTS AND AND TERM SHEETS AND THINGS LIKE THAT.WELL, AND IF I CAN SAY, YOU KNOW, FOR FOR THIS PARTICULAR PRESENTATION NO ONE'S PAYING ME.
I'M HERE JUST ON BEHALF OF THE FIRM AND MY OWN PRACTICE.
SO CONVERSATIONS LIKE THIS ARE IMPORTANT ACROSS THE STATE AND I'M HAPPY TO BE PART OF IT.
OKAY, WELL, I FIND IT REASSURING THAT YOU'RE HIRING HER TO HELP, SO THANK YOU FOR THAT.
I LOVE YOUR IDEA OF COMING UP WITH SOME DEAL GUIDELINES, AND I THINK THAT WOULD BE A VERY IMPORTANT WAY FOR US TO BE ABLE TO COMMUNICATE WITH THE VARIOUS CORPORATIONS AND EVEN THE DEPARTMENT LIKE THESE ARE THE THINGS THAT YOU CAN.
WELL, IN OUR CASE, YOU CAN COUNT ON US PASSING EVERY SINGLE THING, BUT THAT WE WOULD REALLY LIKE TO SEE AND SO I LOVE THAT AND WE ARE WORKING ON THAT COUNCILWOMAN IN MY OFFICE.
WELL, AND SINCE YOU TOLD ME THAT, YOU KNOW, SHE WORKS WITH YOU, THAT WOULD MAKE SENSE.
I ALSO APPRECIATE SOME UNCOMMON ADVICE YOU GAVE, WHICH IS WE RARELY HEAR DON'T DO JUST WHAT ANOTHER CITY IS DOING AND IN FACT, WHAT IS MOST COMMONLY SAID IS, WELL, WHAT ARE THE OTHER CITIES DOING? AND MAYBE WE SHOULD JUST DO ONE OF THOSE AND SO THANK YOU FOR SAYING THAT.
I DO THINK THAT DALLAS HAS SOME UNIQUE CHALLENGES.
I DON'T THINK WE'RE THE ONLY ONE WITH CHALLENGES, BUT I DON'T THINK WE ALWAYS HAVE THE SAME CHALLENGE THAT OTHER PLACES HAVE AND SO I DO THINK WE NEED OUR OWN SOLUTION FOR ISSUES. SO I WANT TO JUST GO THROUGH A COUPLE OF THE ITEMS THAT YOU TALKED ABOUT.
SO YOU WERE SPECIFICALLY SAYING IN YOUR GUIDELINES THAT YOU WOULD LOVE TO SEE SOME CONSIDERATION, MAYBE OF AMI BANDS VERSUS MIXED INCOME, NUMBER OF UNITS, THE TYPE OF THE UNITS, MAYBE ONE, TWO, THREE BEDROOM SUFFICIENCY, THAT SORT OF THING.
WHEN YOU WERE TALKING ABOUT HOW SOMETIMES DEFINING SUCCESS, INCLUDING DOES THIS BECOME A CODE COMPLIANCE OR PUBLIC SAFETY ISSUE? DO YOU HAVE ANY KIND OF STANDARD THAT YOU LOOK AT? I MEAN, YOU COULD HEAR I WAS ASKING THIS QUESTION FOR THE 4% LIHTC, BUT IT'S NOT REALLY MEANT FOR JUST THAT KIND OF HOUSING, RIGHT? I MEAN, IS THERE A STANDARD YOU THINK WE SHOULD BE LOOKING AT? RIGHT. SO JUST TO CLARIFY, SINCE I'M AN ATTORNEY, RIGHT? I DON'T EVER SET POLICY.
DEPENDING ON WHETHER YOU'RE TALKING ABOUT FROM THE HOUSING PERSPECTIVE, WHERE YOU GUYS HAVE THAT PRETTY ROBUST DHP 33 COMPARED TO WHEN YOU'RE LOOKING AT AN HFC THAT CAN KIND OF BE USED DIFFERENTLY.
ONE OF THE BIG BENEFITS OF AN HFC AS THE GENERAL PARTNER IN A PROJECT IS THAT YOU DO HAVE THIS LONG TERM CONNECTION AND THROUGH THE PARTNERSHIP AGREEMENT OR COMPANY AGREEMENT, YOU'RE REALLY INVOLVED IN THE RUNNING OF THE PROJECT IN A WAY THAT, FOR INSTANCE, IF YOU PROVIDE CDBG FUNDING, THE CITY IS NOT GOING TO BE THEY'RE GOING TO BE FROM SORT OF A REGULATORY PERSPECTIVE AND COMPLIANCE PERSPECTIVE, NOT KIND OF INTEGRATED INTO THE DEAL.
SO WHEN YOU'RE FIRST NEGOTIATING, I THINK YOU GET THE OPTION.
IF YOU CAN LOOK AT THE LONG TERM AT THINGS LIKE PARTNERSHIP AGREEMENTS AND GROUND LEASES, YOU JUST HAVE OTHER TOOLS TO DEAL WITH CODE ENFORCEMENT OR PUBLIC SAFETY ISSUES.
THIS IS ACTUALLY MY SECOND CAREER.
I STARTED AS A FIRE INSPECTOR AND DEPUTY FIRE MARSHAL.
SO I DON'T THINK YOU SEE ANY MORE OR DIFFERENT ISSUES WHEN IT COMES TO AFFORDABLE HOUSING AND CODE ENFORCEMENT OR PUBLIC SAFETY THAN YOU DO IN ANY OTHER TYPE OF CONSTRUCTION OR BUILDING.
OKAY AND THEN LAST ONE WAS I AM CONCERNED ABOUT OUR STANDARD OPERATING PROCEDURES, AND I'VE EXPRESSED THAT MANY TIMES OVER MANY OF THE DIFFERENT DEALS.
IS THERE SOME SORT OF TEMPLATE THAT YOU'RE PROVIDING TO THE CITY, OR IS IT YOU'RE JUST HELPING THEM EVALUATE WHAT'S ALREADY IN PLACE AND HOW THAT COULD BE SHORED UP? SO I DON'T THINK I'VE DONE ANY WORK QUITE ON THAT LEVEL AT THIS POINT.
[03:20:08]
PATTERNS AND THEN THE STAFF CAN PICK THAT UP AND START MAKING CHANGES.I KNOW THAT'S A LOT OF SUGGESTIONS WE'VE MADE FROM THINGS WE'VE SEEN ESPECIALLY THINGS THAT OTHER CITIES MIGHT BE DOING THAT SEEM TO BE SUCCESSFUL IN COMBATING A PARTICULAR ISSUE THAT MAYBE DALLAS IS SEEING OVER AND OVER AGAIN.
I KNOW WE SEE THOSE IMPLEMENTED OVER TIME WHETHER IT'S IN FORMS OR NEGOTIATING STANCE ON DEALS, WE'RE NOT EVEN ON THAT SORT OF THING, I THINK SOPS.
BUT SOPS ARE ALWAYS THIS WORK IN PROGRESS.
I'D SAY PROBABLY THE MOST SUCCESSFUL ONES WE'VE SEEN ARE PRETTY SHORT, AND THEY TEND TO BE TIED TO A FUNDING SOURCE OR A PARTICULAR PROGRAM JUST BECAUSE THEY CAN VARY SO MUCH FROM ONE TO THE NEXT.
AND THEY ACT. I THINK YOU SPECIFICALLY HAD MENTIONED A CHECKLIST, AND I THINK THEY KIND OF ACT IN THAT WAY ON THE FRONT END THAT, YOU KNOW, WHEN YOU'VE GOT A PARTICULAR PROGRAM OR FUNDING SOURCE, THESE ARE THE PROCESSES WE NEED TO MAKE SURE HAPPEN ON THIS PROGRAM.
SO, CYNTHIA, CAN YOU CONFIRM FOR BOTH THE HFC AND THE PFC? WE'VE GOT VOLUNTEER BOARD MEMBERS WHO ARE RUNNING THEM, INCLUDING AS THE EXECUTIVE COMMITTEE, BUT YET THEY ARE RECEIVING THE BANK STATEMENTS DIRECTLY, OPENING THEM INDEPENDENTLY, MAINTAINING THOSE RECORDS, ABLE TO SIGN CHECKS WITHOUT CITY AUTHORITY.
IS THAT CORRECT? THAT IS CORRECT.
SO I THINK THAT'S VERY PROBLEMATIC AND WE DON'T HAVE THE DUAL CONTROL SYSTEM SET IN PLACE.
AND NOW WE'RE TALKING ABOUT $27 MILLION SITTING IN A FUND AND I JUST DON'T THINK WE SHOULD OPEN OURSELVES UP TO THAT KIND OF LIABILITY AND MISMANAGEMENT MORE THAN ANY OTHER CITY, BECAUSE WE'VE ALREADY HAD HUD SITTING IN OUR CITY HALL FOR YEARS.
I AGREE. AND THERE'S A LEVEL OF CONFIDENCE THAT WE WANT OUR TAXPAYERS TO HAVE, HAVING GIVEN UP REVENUE TO PROVIDE THIS KIND OF IMPORTANT HOUSING.
CHAIR, I KNOW WE'VE SORT OF GONE THROUGH THOSE BRIEFINGS ALREADY, BUT I GUESS I'M GLAD TO.
BE SAYING THIS ON CAMERA, AND I HOPE NOBODY'S EVER REPLAYING IT LIKE, OH, YEAH MENDELSOHN SAID THIS WAS A PROBLEM BECAUSE I THINK THERE IS A PROBLEM AND I TRULY APPRECIATE THE SERVICE OF ALL OUR VOLUNTEERS.
I'M IN NO WAY TRYING TO CAST ANY ASPERSIONS TO ANYBODY, BUT PROVIDING A LACK OF CONTROLS WELCOMES MISUSE.
SO I'M CONCERNED ABOUT WHAT IS AND ISN'T IN PLACE.
THANK YOU AND IF I CAN JUST SPEAK A MOMENT ABOUT THAT.
SO YES, I AGREE THAT WE NEED CONTROLS IN PLACE.
THAT IS WHY I WANTED TO BRING ALL OF THIS INFORMATION TO YOU.
NOW THAT WE ESPECIALLY KNOW, AFTER PRACTICING THROUGH THIS OVER MANY YEARS, WHAT SEPARATIONS OF RESPONSIBILITIES NEED TO BE IN PLACE AND WHAT WE REALLY DO NEED, IT IS AN OVERWHELMING RESPONSIBILITY AT SUCH A SHORT PERIOD OF TIME TO HAVE SO MUCH MONEY IN THE COFFERS AND AS MARCY MENTIONED IN HER PRESENTATION, THEY HAVE GROWN SIGNIFICANTLY OVER A VERY SHORT PERIOD OF TIME, AND WE NEED TO NOW PUT THESE THINGS IN ORDER.
SO THAT IS WHAT WE'RE GOING TO BE WORKING ON OVER THE NEXT SHORT MONTHS, GETTING VERY IMPORTANT THINGS IN PLACE AND THEN WORKING ON OTHER THINGS LONG TERM AS WE GO ALONG THROUGH THESE AND WORK WITH OUR CORPORATIONS.
COUNCIL MEMBER WILLIS, THANK YOU.
YES. WELL, WE'VE ALREADY PUT THINGS IN PLACE BECAUSE, AS I MENTIONED WITH OUR INTERIM MANAGER, JACQUELINE SCHROEDER, WHO IS NOW STEPPING OVER AND WORKING WITH US ON SETTING UP CHECKLISTS AND SOPS AND WORKING THROUGH PROCESSES THAT STREAMLINE SOME THINGS THAT WE NEED TO GET DONE.
WE'LL HAVE THOSE THINGS IN PLACE WAY BEFORE FEBRUARY, BUT WE CAN COME BACK TO YOU WHEN WE SUBMIT OUR
[03:25:08]
DRAFTS OF THE BYLAWS.WE CAN COME BACK WITH YOU, COME BACK TO YOU WITH ANOTHER UPDATE ON WHERE WE'RE AT WITH ALL OF THIS.
ONE QUESTION I HAD, MISS PURCELL, I THINK IS ON PAGE SEVEN.
THIS IS RELATED LEGISLATIVE AND RULE CHANGES.
THE LAST BULLET IS CHANGES INTO CFR 200.
ALLOW LOCAL HIRING PREFERENCE.
CAN YOU TELL ME A LITTLE BIT MORE ABOUT THAT? I CAN'T TELL YOU TOO MUCH ON IT, BECAUSE I'VE BEEN SO HEAVY INTO THE TWO CFR 200 APPLICATION TO HOUSING PROJECTS THAT ARE ALREADY IN PLACE UNDER THE OLD RULES, BUT I KNOW THAT'S ONE OF THE SIGNIFICANT CHANGES TO 2 CFR 200 IS ALLOWING FOR SOME LOCAL HIRING PREFERENCE, AND WE'LL ACTUALLY BE PRODUCING AND WE DON'T CHARGE FOR THAT. WE'LL BE PRODUCING.
BUT YOU KNOW, PRIOR TO THAT CHANGE THAT WENT INTO EFFECT OCTOBER 1ST THERE WAS REALLY NOT A GOOD WAY TO ALLOW FOR LOCAL PREFERENCE WITHOUT POTENTIALLY AT LEAST ON CERTAIN FUNDING SOURCES RUNNING AFOUL OF THE FEDERAL REQUIREMENTS.
SO I FELT LIKE THAT WAS A SORT OF A GOOD LEAD IN TO ONE.
THERE'S GOING TO BE SOME ROOM FOR MANEUVER, 2.
I THINK IF YOU READ ONE OF MY SLIDES, YOU CAN SEE THAT THERE'S A LOT ABOUT SUBRECIPIENTS, THERE'S A LOT ABOUT ALL THE STRINGS THAT COME WITH FEDERAL REQUIREMENTS AND THAT'S WHERE I SAY I THINK THERE'S AN OPPORTUNITY FOR HFCS AND CITIES IN GENERAL.
TIME ON THESE DEALS IS REALLY IMPORTANT AND SO HAVING YOUR FEDERAL RULES, YOUR FEDERAL PROCUREMENT POLICIES, WE GENERALLY GENERALLY SUGGEST THAT BECAUSE AN HFC IS A NONPROFIT, NOT PART OF THE LOCAL GOVERNMENT, THAT THEY HAVE THEIR OWN FEDERAL PROCUREMENT POLICY THAT IS COMPLIANT AND YET GIVES THAT AGILITY THAT YOU MIGHT NOT WANT FOR THE CITY AS A WHOLE.
SO I REALLY THINK IT'S WORTH LOOKING AT THAT FOR AN HFC TO SMOOTH OUT WHEN YOU USE FEDERAL FUNDS, ESPECIALLY IF YOU'RE GOING TO LEVERAGE THEM INTO A LONG TERM SUSTAINABLE PROJECT AND I SORRY, I USED THAT TO TALK ABOUT, YOU KNOW, FEDERAL IN GENERAL, BUT HOPEFULLY THAT GIVES YOU SOME, INFORMATION. THANK YOU AND I THINK ON THE HOUSE BILL 2071 SUMMARY, I THINK THE QUESTIONS I HAVE ARE PROBABLY GOING TO BE MORE FOR THE HOUSING DEPARTMENT.
SO I'LL COME BACK ANOTHER TIME ON THAT.
THANK YOU. THIS WAS VERY INSIGHTFUL.
I APPRECIATE YOUR PRESENTATION.
WE'RE NOT GOING TO BE ABLE TO GET TO OUR NEXT TWO ITEMS, BUT BEFORE CLOSING, CYNTHIA IF YOU CAN PROVIDE US WITH THE CURRENT BYLAWS AND ANY RED LINES THAT ARE BEING RECOMMENDED AND ARE YOU LOOKING FOR DIRECTION FROM THIS COMMITTEE TODAY? I AM. ON NEXT STEPS.
WHETHER WE WANT TO CONTINUE AS IS OR HALT NEW APPLICATIONS OR STOP ALL ACTIONS.
YES, SIR. OKAY, SO THIS WILL BE AN INFORMAL GUIDE AND SO I'M GOING TO START TO MY RIGHT WITH COUNCILWOMAN WILLIS ON A RECOMMENDATION.
YEAH. SO WE'RE TALKING ABOUT THE GREEN, YELLOW, RED.
YEAH. I DON'T THINK RIGHT NOW WE SHOULD HOLD ANYTHING UP.
THESE THINGS TAKE TOO LONG TO GET THROUGH OUR PROCESS AS IT IS AND SO I THINK WE CAN WORK SIMULTANEOUSLY IN TANDEM, MAKING SOME POSITIVE CHANGES, BUT NOT IN HOLDING UP SOMETHING THAT IS SO CRITICAL IN OUR COMMUNITY.
THANK YOU. I WOULD BE IN THAT YELLOW CATEGORY.
COUNCILMEMBER GRACEY I'M IN THE GREEN CATEGORY TO KEEP GOING AND ALTERING AS WE CONTINUE MOVING AND SO I THINK YOU'RE NOT GOING TO GET DIRECTION TODAY BECAUSE I'M GOING TO BE IN THE YELLOW CATEGORY TODAY.
SO YOU MIGHT WANT TO CHECK WITH COUNCIL MEMBER WEST, BECAUSE I THINK HE MIGHT BE A TIEBREAKER.
ALL RIGHT. THE TIME NOW IS NOW 12:59 AND WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.