[Dallas Housing Finance Corporation on November 12, 2024.]
[00:00:04]
OKAY, GOING TO CALL THE MEETING TO ORDER AT 1205.
UM, AND I WILL TURN IT OVER TO, UM, MANAGER SCHROEDER TO DO THE ROLL.
SEAN, SAY SEAN IS, OH, I GUESS NOT RIGHT.
PRESENT DIRECTOR JACK MARSHALL SEAT PRESENT.
JUST A REMINDER FOR EVERYONE AT HOME TO, UH, THE CAMERA ON DURING THE LENGTH OF THE MEETING, UH, DIRECTOR PATTY COLLINS HERE.
PRESENT VICE PRESIDENT RYAN GARCIA.
UH, PRESENT PRESIDENT MARCY HEIN.
HERE, DIRECTOR OLIVER ROBINSON.
AND DIRECTOR SEAN Z IS HERE, BUT ACROSS THE HALL.
TANISHA, DO YOU MIND LETTING HIM KNOW THAT WE'RE STARTED? OKAY.
I'LL NOW OPEN THE FLOOR FOR ANY PUBLIC COMMENTS ON ITEMS FOUR THROUGH 13 OF THE AGENDA.
I'LL JUST WAIT A FEW MOMENTS TO SEE IF ANYBODY HAS ANY PUBLIC COMMENT.
SO WE'LL GO ON TO ITEM NUMBER FOUR OF THE AGENDA, WHICH IS APPROVAL OF THE MINUTES FOR THE OCTOBER 8TH, 2024, CITY OF DALLAS HOUSING FINANCE CORPORATION, DHFC, OR THE CORPORATION MEETING.
AND, UM, BEFORE I, UH, ENTERTAIN A MOTION, UM, I HAD A COUPLE, SOME TYPOS FROM WHAT WAS POSTED.
THEY'RE, I THINK, YEAH, THEY'RE ALL ON PAGE FIVE.
ITEM 10 IN THE SECOND PARAGRAPH.
UM, AT THE LAST SENTENCE, IT SHOULD SAY, READ PRESIDENT MARCY HEALTH AND POINTED OUT A TYPO IN THE SUBORDINATION LOAN.
PRETTY FUNNY THAT WAS POINTING OUT A TYPO AND THERE IS A TAKEOVER
ANYWAY, UM, AND THEN, UH, IN THE NEXT PARAGRAPH, I'M SURE DIRECTOR ELLIS NOTICED THIS, VICE PRESIDENT RYAN GARCIA MOVED TO APPROVE THIS ITEM AND DIRECTOR.
IT'S DAVID ELLIS RATHER THAN ELLIS DAVIS'S SECONDED THE MOTION.
AND THEN IT SHOULD READ A FRIENDLY AMENDMENT WAS MADE TO REVISE THE WORD CHANGE CAN COME OUT THE EXHIBIT A TO REFLECT AND THEN MAYBE INSERT THE WORD, THE ACCURATE LOCATION.
SO THAT WAS WHAT I HAD, BUT I'LL OPEN UP THE FLOOR TO ANYONE ELSE WHO'S HAD ANY, UM, ANYTHING THEY WANTED TO REVISE IN THE MINUTES OR ADD TO THE MINUTES.
MR. APPROVE THE MINUTES AS WRITTEN WITH THE PENDING CORRECTIONS.
NEXT ITEM ON ITEM NUMBER FIVE ON THE AGENDA.
RESOLUTION FOR 29 29 WYCLIFFE, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 29 29 WYCLIFFE AVENUE IN THE CITY OF DALLAS, DALLAS COUNTY, TEXAS 7 5 2 1 9.
CONSIDERING ADOPT PARTNERSHIP RESOLUTIONS APPROVING THE FORM AND SUBSTANCE OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING AND OPERATION
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OF 29 29, YCL THE DEVELOPMENT AND CONTAINING OTHER PROVISIONS RELATING TO SUCH DEVELOPMENT, INCLUDING RESOLUTIONS APPROVING THE GROUND LEASE BETWEEN DALLAS 29 29 PROPERTIES, K-I-L-L-C, THE BORROWER AND DHFC 29 29 WIFE WITH LANDOWNER LLC APPROVING THE REGULATORY AGREEMENT WITH RESPECT TO THE DEVELOPMENT AUTHORIZING FINANCING FOR THE DEVELOPMENT TO INCLUDE AN EQUITY INVESTMENT BY DALLAS 29 29 PROPERTIES.JV, I GUESS THAT'S K-I-L-L-C TO DALLAS, 29 29 PROPERTIES MASTER JV LP, THE SOLE MEMBER OF THE BORROWER AND LOAN FINANCING FROM GRAND BRIDGE REAL ESTATE, CAPITAL LLC TO THE BORROWER AND AUTHORIZING AND RATIFYING ACTIONS IN THE EXECUTION OF DOCUMENTS BY THE CORPORATION'S PRESIDENT, OTHER OFFICERS, GENERAL MANAGER AND ASSISTANT GENERAL MANAGER IN CONNECTION WITH THE ABOVE REFERENCED TRANSACTIONS.
SO I'LL TURN IT OVER TO OUR GENERAL MANAGER.
SO WE HAVE THE FINAL DOCUMENTS READY TO APPROVE THIS TRANSACTION.
WE HAVE MATT FALCON HERE FROM CAS IF THERE ARE ANY REMAINING QUESTIONS, BUT, UM, UH, TEAM AND HOPEFULLY WE CAN GET AN APPROVAL, LET CITY COUNCIL, BUT THEN IF WE ALL HAVE QUESTIONS, THEY ARE, WE'RE ALL HERE TO ANSWER IT IF ANYTHING CHANGED SINCE IT WAS LAST PRESENTED TO US.
CAN I ASK ONE QUESTION THEN? SURE.
AND MAYBE YOU SHOULD HAVE NOTICED BEFORE, IN THE GROUND LEASE, IF THEY DON'T MAKE GROUND LEASE PAYMENTS IS GROUND LEASE PAYMENTS ACCRUE CORRECT.
UNTIL THE CASH FLOW IS SUFFICIENT AND IT REFERENCES DALLAS 29 29 PROPERTIES MASTER JB KI WHEN CASH FLOW IS DEFINED.
AND I DIDN'T SEE THAT DOCUMENT, BUT I JUST WANTED TO UNDERSTAND THAT I UNDERSTAND THE WATER WATERFALL.
LIKE, BECAUSE NORMALLY I'M USED TO A GROUND LEASE, LIKE THAT'S THE, YOU KNOW, THAT'S THE ULTIMATE SECURITY YOU HAVE IS IF THEY DON'T PAY YOUR GROUND LEASE PAYMENTS, YOU TAKE OVER THE IMPROVEMENTS.
AND I I JUST WANTED TO UNDERSTAND KIND OF WHAT THAT WATERFALL WAS.
CASH CASHFLOW DEFINITION, WHAT THE THOUGHT PROCESS THERE WAS.
I THINK THE KEY POINT I GOTTA FIND OUT IS OUR GROUND LEASES HAVE TO BE SUBORDINATED TO THE FIRST LIE DEBT.
SO THAT'S, THAT'S WHERE YOU'RE GONNA FIND A BIG DIFFERENCE BETWEEN MOST GROUND LEASES AND OUR GROUND LEASES.
THE REASON IS MOST LENDERS WILL NOT, UH, HAVE THE GROUND LEASE PAYMENT OTHER WE THE BORROWER TOTALLY UNDERSTAND.
WE'RE GONNA BORROW ON TOP OF BEING THE GROUND OWNER.
SO NO LENDER'S GONNA AGREE TO HAVING OUR GROUND GOING FIRST.
SO THAT'S KIND OF, I DUNNO IF THERE'S OTHER ASPECTS OF WATERFALL YOU WANNA KNOW, BUT THAT'S THE KEY POINT ON THAT.
AND MAYBE OUR COUNSEL, OUTSIDE COUNSEL COULD SPEAK TO, UM, WHAT HAPPENS IF THE GROUND PAYMENT ISN'T MADE.
UM, SO RELATIVELY RECENTLY, UM, DALLAS, HFC AND A LOT OF OTHER HFCS HAVE SHIFTED AWAY FROM STRUCTURING DEALS WHERE THE HFC TAKES A SHARE OF EXCESS CASH FLOW.
SO THERE WERE A LOT, YOU KNOW, HISTORICALLY, UH, ONE OF THE FINANCIAL RETURNS TO AN HFC WAS A SHARE OF EXCESS CASH FLOW.
WHATEVER THAT WAS, WHATEVER THAT PERCENTAGE WAS, WENT TO THE GENERAL PARTNER ENTITY, UM, PRIMARILY TO PROVIDE A LITTLE MORE CERTAINTY WITH RESPECT TO THE AMOUNT OF THE, UH, PAYMENTS COMING BACK TO THE HSC ENTITIES.
UM, CAN'T REALLY PREDICT TIMING ANY BETTER, BUT CERTAINLY WITH RESPECT TO AMOUNT, UM, YOU KNOW, WE'VE SEEN A TREND FOR GROUND PAYMENTS THAT HAVE A DEFINED AMOUNT AS THE PAYMENT.
AND TO YOUR POINT, UM, IT'S NOT AN OPERATING EXPENSE.
SO IF IF IT'S NOT PAID, WE CAN'T, UH, YOU KNOW, TAKE THE TENANTS OUT AND OR THE GENERAL PARTNER OF THE TENANTS, I'M NOT SURE WE WANNA DO THAT, BUT, UM, IT, IT SIMPLY APPROVES WITHOUT INTEREST.
UM, SO, UH, IF IF THERE'S ANY PORTION OF THAT, UH, THAT CAN'T BE PAID FROM A CURRENT YEAR'S CASH FLOW, THAT WILL APPROVE, UH, AND BE PAYABLE, UM, PRESUMABLY THE NEXT YEAR WHEN YOU GO THROUGH THE CASH FLOW WATERFALL AND, AND, AND, UH, DIVIDE OUT WHAT'S, WHAT'S THERE, UM, YOU KNOW, BUT, BUT ALSO MAYBE DISCUSS WHAT IT COMES AHEAD OF.
SO IN OTHER WORDS, IF WE DON'T GET OUR GROUND LEASE PAYMENT, WHO ELSE SUFFERS WITH US? YEAH, SO WE PUT THAT PAYMENT, UM, IT, IT IS HIGH IN THE WATERFALL, SO IT'S ESSENTIALLY THE FIRST PAYMENT THAT, SO MATT, HIS GROUP AND HIS INVESTOR, UH, THEY DON'T GET PAID, UH, UNTIL OUR BRADLEY'S PAYMENT GETS PAID.
UM, SO A LITTLE DIFFERENT THAN THE TAX CREDIT DEALS IS A COUPLE MORE DYNAMICS, BUT, UH, THAT, YOU KNOW, FEES THAT, UH, GO AHEAD OF GROUND LEASE PAYMENTS TYPICALLY, BUT IT'S HIGH UP IN THE WATERFALL.
AND CERTAINLY BEFORE OUR PARTNERS GET THEIR RETURN, ANSWER THE QUESTION.
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MY QUESTION.I'LL MOVE TO APPROVE DOCUMENTS AS WE'RE IN THE ITEM.
SO WE HAVE MOTION MADE BY VICE PRESIDENT GARCIA, AND DO I HEAR A SECOND? I'LL SECOND SEAN.
WE HAVE A NEW BOARD MEMBER HERE,
SO RIGHT HERE, I WAS ABOUT TO READ OFF HIS NAME AND I WAS LIKE, I DID NOT INTRODUCE HIM.
IT'S DIPPIN NAMBIAR AND, UM, HE, UH, I GUESS YOU WERE APPOINTED A LITTLE WHILE AGO.
BUT ANYWAY, HE'S JOINING US FOR THE FIRST TIME LIVE AND IN PERSON.
AND I WANT TO VERY MUCH WELCOME YOU AND, UM, LET YOU KNOW HOW PLEASED WE ARE THAT YOU WILL BE SERVING ON THE BOARD.
NOW I WILL CALL OUT THE THING, UM, I GUESS DIRECTOR ALLEN DEAN, THE PRESENTATION.
I, UM, DIRECTOR MARSHALL C APPROVE, UM, TREASURER FARRAH APPROVE, UH, DIRECTOR COLLINS APPROVE, DIRECTOR HINTON APPROVE VICE PRESIDENT GARCIA APPROVE.
DIRECTOR ELLIS PROOF I APPROVE.
DIRECTOR ROBINSON, DIRECTOR MOORE SECRETARY PAGE APPROVE, AND DIRECTOR Z APPROVE.
NEXT ITEM ON THE AGENDA IS ITEM NUMBER SIX, RESOLUTION FOR WATERFORD AT GOLDMARK, A MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 1 3 6 9 5 GOLDMARK DRIVE IN THE CITY OF DALLAS, DALLAS COUNTY, TEXAS 7 5 2 4 OH A CONSIDER AND ADOPT FINANCING RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION, MULTI-FAMILY HOUSING REVENUE NOTES WATERFORD AT GOLDMARK EXPERIENCE 2024 WITH THE PROCEEDS OF SUCH GOVERNMENTAL NOTE, THE NOTE FINANCING TO BE LOANED TO 1 3 6 9 5 GOLDMARK DRIVE, TX OWNER LP THE BORROWER TO FINANCE A PORTION OF THE COST OF THE REHABILITATION OF WATERFORD AT GOLDMARK, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 1 3 6 9 5 GOLDMARK DRIVE THE DEVELOPMENT.
AND B, CONSIDER AND ADOPT PARTNERSHIP RESOLUTIONS APPROVING THE FORM AND SUBSTANCE OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS AND INSTRUMENTS NECESSARY TO CARRY OUT THE FINANCING AND REHABILITATION OF THE, OF THE DEVELOPMENT AND CONTAINING OTHER PROVISIONS RELATING TO SUCH DEVELOPMENT, INCLUDING A RESOLUTION APPROVING THE GROUND LEASE BETWEEN THE BORROWER AND DHFC WATER VERDICT GOLDMARK LANDOWNER LLC AND RESOLUTIONS AUTHORIZING THE ADMISSION OF DHSC, WATERFORD, GOLDMARK THREE PLLC, THE GENERAL PARTNER TO THE BORROWER AND FINANCING FOR THE DEVELOPMENT TO INCLUDE EQUITY FINANCING BY PNC BANK NATIONAL ASSOCIATION, PNC, THE NOTE FINANCING, A CONSTRUCTION LOAN FROM PNCA BRIDGE LOAN FROM PNC AND A
UM, SO I'LL TURN IT OVER TO OUR GENERAL MANAGER.
UM, AGAIN, THIS IS A FINAL APPROVAL FOR A PROJECT WE'VE SEEN SEVERAL TIMES.
THEY HAVE RECEIVED A BOND ALLOCATION, UH, LINE TO GET THE TAX CREDITS AND CLOSE HERE IN, I BELIEVE, EARLY DECEMBER.
UM, THESE ARE THE FINAL DOCUMENTS I'LL NOTE OF NO CHANGE FROM OUR OU.
UM, AND IF THERE ARE ANY QUESTIONS, WE ALSO HAVE BRAD FISHER HERE FROM PEOPLE HOUSING TO, UH, DISCUSS ANY DETAILS.
ARE THERE ANY QUESTIONS OUTTA CURIOSITY? HOW MANY OF THE 180 DAYS DO WE HAVE LEFT?
I'LL MOVE TO APPROVE THE, THE MOTION AS WRITTEN.
VICE PRESIDENT GARCIA MOVES TO APPROVE.
AND, UM, I WILL TAKE THE VOTE.
UM, DIRECTOR NAMBIAR, UM, DIRECTOR MARSHALL C APPROVE TREASURER, FAR APPROVE.
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DIRECTOR HINTON APPROVE.VICE PRESIDENT GARCIA APPROVE.
DIRECTOR ROBINSON PROOF DIRECTOR MOORE SECRETARY PAGE APPROVE AND DIRECTORS A APPROVE.
WE HAVE IT LOOKED AT THIS ONE BEFORE.
PAUL STREET IN THE CITY OF DALLAS, DALLAS COUNTY, TEXAS 7 5 2 0 1.
AND TO BE CONVERTED TO A MULTI-FAMILY RESIDENTIAL DEVELOPMENT.
A CONSIDER AN ADOPT A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH BLUE LOCKS INC.
OR A DESIGNATED AFFILIATE FOR THE ACQUISITION, FINANCING, DEVELOPMENT AND OPERATION OF THE HARTFORD LIVING, WHICH WILL BE CONVERTED TO A MULTI-FAMILY RESIDENTIAL DEVELOPMENT.
P CONSIDER AN ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH
C, CONSIDER AND ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH THE CORPORATION AS THE SOLE MEMBER WITH THE TEXAS SECRETARY OF STATE TO BE NAMED DHFC, THE HARTFORD LIVING CONTRACTOR LLC IN APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF.
AND D, CONSIDER AND ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH THE CORPORATION AS THE SOLE MEMBER WITH THE TEXAS SECRETARY OF STATE TO BE NAMED DHFC, THE HARTFORD LIVING LANDOWNER LLC IN APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF.
UM, WE HAVE AN OPPORTUNITY TO CONSIDER A PROJECT HERE, TYPE WITH
IT'S HISTORIC TAX CREDITS, EXISTING OLD OFFICE BUILDING ON, UM, ST.
CAN'T GET ANY MORE CENTRAL THAN THIS.
AND SO WE HAVE OKAY, THE I OVER THERE.
I CAN AS JOSH OVER OVER HERE IF YOU GUYS WANNA COME UP AND WE'LL RUN THROUGH YOUR SLIDE DECK.
HE IS, UH, HE WORKS FOR OUR DEVELOPER PARTNER AND HIS ASSOCIATES.
I WE, WE WON'T INTRODUCE THEM ALL, BUT, UH, THEY'RE ALL HERE TO ANSWER QUESTIONS.
SO 190,000 SQUARE FOOT ON UTILIZED OFFICE BUILDING IN DOWNTOWN DALLAS WITH ABOUT 10% OCCUPANCY.
OUR GOAL IS TO CONVERT THIS BUILDING INTO 2017 UNIT, UM, WITH THAT COMBINATION OF STUDIO ONE BEDROOM, TWO BEDROOM, APARTMENT SET ASIDE.
RIGHT NOW, IT, EACH OF THOSE UNITS WILL BE RESERVED CC 8%.
I, UM, SOME OF THE FINANCING TOOL WE USE FOR THIS CONVERSION CONSTRUCTION LENDERS SITTING ONE 45% OF ABOVE COST.
WE ALSO HAVE A CIRCLE TAX INCENTIVE, OUR CAPITAL STACK HERE, AND AS WELL AS, UH, THE DEVELOPER EQUITY.
SO SOME OF THE CIRCLE TAX RELATED WILL BE BOUGHT BY THE COMMERCE BANK, UH, 93 CENTS ON THE DOLLAR.
OUR PROJECT IS SCHEDULED TO START, UH, YOU KNOW, UH, Q1.
SO WE ALSO HAVE, UH, SOME OF THE KEY PICTURE FOR THIS PROJECT ARE THE AMENITIES HERE.
WE HAVE A GREAT MOVE ON THE TOP FLOOR, UH, HERE, MINI GARDEN FOR
THAT WILL BE A SUSTAINABLE FEATURE, UM, TO, TO HELP THE RESIDENT TO, TO LEARN HOW TO BUILD THE OWN FOOD.
WE HAVE A SMALL BUSINESS
UH, WE, WE HOPE TO, TO REDUCE THE CORE USAGE FOR THE RESIDENT AND INCREASE THE PUBLIC CHECKS AND ACCESS FOR ALL OUR
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FOR THE RESIDENT TO SPEND TO AFFORD EDUCATIONAL HEALTHCARE AND OUR EQUITY COMMITMENT HERE, WE ARE LOOKING TO HAVE US SUBCONTRACTORS SUPPLY TO THE MBES AND UM, UH, AS WELL AS PROVIDE STABILITY FOR THE TENANT BECAUSE SUSTAINABLE UNIT WILL BE RESTRICTED TO NOT SEE HUNDRED 40%.SO WE INVITE YOU GUYS TO PART TODAY IN ORDER TO IZE POWER DOWNTOWN.
ALSO HAVE A PROTOTYPE PUBLIC PARTNERSHIP, UH, AS A CONCEPT TO, UH, URBAN LIVING, UH, THAT WOULD PROVIDE, UH, A GREAT, UH, ACCESS TO DOWNTOWN TRANSPORTATION AS WELL BE A GREAT FIT FOR SEE THE
AND YOU, ARE Y'ALL ALREADY LISTED ON THE NATIONAL REGISTER? UH, IT'S IN PROCESS.
UM, HOW ARE YOU, HOW FAR ALONG IN THE PROCESS ARE YOU? UM, UH, 360 DAYS.
WE HAD THE FIRST SIDE OF COMMON.
IS AFTER THE PART ONE OR THE PART TWO? PART ONE OR, OKAY, SO YOU STILL HAVE TO GO THROUGH THE PART TWO FOR THE CREDITS.
AND THEN WHEN YOU'RE LOOKING AT THE CREDITS, YOU SAID 93 CENTS ON THE DOLLAR.
ARE THOSE FOR THE FEDERAL OR STATE CREDITS? UH, STATE, STATE CREDITS.
UH, WHAT'S SURPRISING ON THE FEDERAL? 85 CENTS.
AND YOU'RE STILL HOPING TO START FIRST QUARTER OF NEXT YEAR WITHOUT BEING ON THE REGISTER YET? UH, NO.
WE'LL, WE'LL BE ON THE REGISTER.
WE SAW THE PROCESS IN JULY EDITION.
AND HAVE YOU DONE, UH, OFFICE TO RESIDENTIAL CONVERSIONS BEFORE? YES, MA'AM.
SO WE JUST COMPLETED THE A THT GRAPH FROM CLAND THAT WILL TAKEN FOR DECADES, 600,000 SPENCER.
SO WE OFFERED THE BUILDING TWO SEVEN UNIT, THE SET ASIDE 80% BELOW AND THE BUILDING RIGHT NOW IN
THAT IS IN CLEVELAND, YOU SAID? CLEVELAND.
AND WE ALSO HAVE A, A MODEL UNIT INSIDE PACIFIC, DOWNTOWN ON THE 23RD FLOOR.
IT'S WAY BEFORE COVID IN 2016.
AND, UH, WE HAD A MODEL UNIT, UH, RIGHT THERE ON THE 23RD FLOOR.
HAD TWO UNITS OF PROTOTYPE CO WHO'S GOING TO OPERATE.
WE HAVE ASSET LIVING AS A PROPERTY MANAGER.
UM, HD IS THAT AN AFFILIATE OR EVERYBODY? WHAT YEAR WAS THIS BUILDING BUILT? UH, HAVE YOU DONE A ASBESTOS AND LIKE LEAD-BASED PAINT, ALL THAT ENVIRONMENTAL SURVEYS? YEAH.
AS OF A MITIGATION ALREADY STARTED ON THAT.
NO, IT WAS ALREADY MITIGATED BEFORE.
AND COULD YOU TALK A LITTLE BIT ABOUT THE COMMERCIAL ASPECT AND THE CONDOMINIUM ASPECT? YEAH, WE'LL, WE'LL SPLIT UP THE CARGO, UH, FIRST FLOOR.
WE HAVE A, A, UH, INDIAN GROCERY STORE.
SO IT'S CURRENTLY TALKING TO
AND THEN WE ALSO HAVE A CLASSROOM ON THE GROUND FLOOR.
UH, IT'S A SMALL BUSINESS INCUBATOR THAT WILL PROVIDE, UH, MONTHLY
ALL THE COMMERCIAL IS MARKET IS 4,000 AND 4,000.
AND, UM, AND SO YOU HAVE NOT IT YET, DOES THE STEEL INCLUDE THE ADJACENT GARAGE OR IS IT JUST THE HARTFORD BUILDING? UH, ADJACENT HARTFORD BUILDING DON'T HAVE, NOT TRAINING IN PARKING.
WE AGREEMENT THE, UH, PEOPLE PARKING GARAGE.
NOT PARKING, PARKING THAT'S ADJACENT TO THE PROPERTY.
SO HOW LONG DO THE AGREEMENT? SO, SO RIGHT NOW IT WAS A 10 YEARS AGREEMENT TO, YOU KNOW, LOOKING INTO RENEW, CLOSING TO JUST PROVIDE ACCESS TO ALL THE PARKING
SO THAT DOESN'T BELONG TO A BUILDING, IT'S JUST A PARKING COMPANY THAT OWNS YES.
THAT'S BUT YOU'RE SAYING IT'S RE YOU ARE GONNA BE RENEWING IT? YES.
SO THAT IT WILL HAVE WHAT TERM WE LOOKING AT? 30, 30 YEARS TERM.
SO, BUT THE, THE PRICE
HOW MANY SPACES? UH, WE NEED, WE NEED.
SO IN TERMS OF ZONING, UM, YOU'LL BE ABLE TO FULFILL YOUR ZONING REQUIREMENTS OR IS OR CHANGE, CHANGE.
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CHANGE OF USE, YEAH.BUT THAT HASN'T HAPPENED YET, SO, SO WE HAVE A, A
BUT DO YOU THINK THAT THE PARKING AGREEMENT WILL BE PART OF YOUR, THAT WILL BE PART OF THE REQUIREMENT, RIGHT? YEAH.
SO THEY'LL ACTUALLY AGREE TO NO PARKING.
IS THERE AN IN PLACE PARKING AGREEMENT WITH THE BUILDING RIGHT NOW? YEAH, THERE'S AN IN PLACE PARKING.
SO YOU'RE HOPING TO EXTEND THE AGREEMENT? YEAH.
SO THAT'S WHY DID THE RATIO CHANGE? BECAUSE THE USAGE CHANGE, SO BASICALLY WE, THE RATIO FOR THE OFFICE, IT'S ONE FOR 10.
SO RIGHT NOW WE NOT NEED ONE PARKING SPACE.
WELL, SO YOU HAVE 190, BUT IT, ARE WE TALKING, ARE THERE TWO SEPARATE SETS OF PARKING SPACES OR JUST ONE? UM, IT'S A PARKING GARAGE.
AND SO RIGHT NOW YOU HAVE THIS AGREEMENT, BUT YOU'RE SAYING THAT IT'S NOT GONNA BE RE A REQUIREMENT OF THE PLAN COMMISSION APPROVAL TO MAKE SURE THAT AGREEMENT WILL BE EXTENDED AND INCLUDE MORE SPACES.
IT'S IT'S MORE A REQUIREMENT FOR CONSTRUCTION TO PROVIDE PARKING.
IT'S NOT THAT THE PARKING OH, THERE IS.
UM, ANY OTHER QUESTIONS? QUESTIONS FOR OUR, UH, CONSULTANTS? IS THERE ANY ISSUE WITH US BEING INVOLVED IN THE COMMERCIAL SPACE OR WITH THE COMMERCIAL SPACE BEING PART OF THE BUILDING? IT'S GONNA BE A CONDOMINIUM.
YEAH, WE'RE GONNA, WE'RE NOT GONNA HAVE ANY, OKAY.
OUR GROUND LEASE WILL ONLY COVER OUR UNIT.
UM, YEAH, THE GROUND LEASE, WE ONLY COVER THE RESIDENTIAL, UM, THE GROUND FLOOR AND THE RESIDENTIAL'S ONLY ABOUT A HUNDRED, 1500 16,000.
BUT IT'S NOT BEING SEPARATELY OWNED CONDO.
YEAH, WE'LL HAVE SEPARATELY OWNED, BUT THAT'S JUST THE COMMERCIAL RETAIL WILL HAVE TO BE SEPARATELY OWNED STATE SPONSOR, CORRECT? LIKE YOU GUYS ARE STILL, I MEAN IT'S GONNA BE CONDO, BUT YOU'RE GONNA OWN THE RETAIL.
BUT OUR, NONE OF OUR COSTS GOES TOWARDS THAT PORTION.
THE DEAL, RIGHT? YOU HAVE THAT WOULD BE CAPITALIZED SEPARATELY.
THE PRO FORMA THAT WE GOT WAS ONLY FOR THE RESIDENTIAL.
WHAT DOES THAT MEAN? THE GROUND LEASE DOESN'T APPLY TO THE RETAIL.
WE OWN THE LAND, WE'RE GROUND USING IT.
CONDOM, MINIMIZE RETAIL IS ON THAT.
WELL, YOU CAN PARCEL OUT THE LAND AS WELL.
BUT BUT THE CON THE RETAIL SUITE PARTY TO THE GROUND, SOME OF THE CON SOME OF THE OTHER IMPROVEMENTS THAT WE ARE PARTY TO IS ABOVE THE RETAIL, RIGHT? CORRECT.
IS, IS THE GROUND THAT'S GONNA BE SPLIT OUT PROPORTIONALLY BASED ON IMPROVEMENTS? WE SPLIT UP THE GROUND AND THE REST OF THE BUILDING.
AND UH, BASICALLY THE RETAIL BE, THE REASON THAT HAS BE CONDO IS THE, THE RETAIL CANNOT RECEIVE PART OF TAX CREDIT.
WELL, IT CANNOT RECEIVE THE TAX EXEMPTION, SO, OH, IN THE TAX EXEMPTION.
SO IF WE, IF WE DON'T CONDO THE RESIDENTIAL AND RETAIL, THEN THAT COULD POTENTIALLY JEOPARDIZE THE TAX EXEMPTION FOR THE ENTIRE PROPERTY, THE OPERATION DISTRICT.
THAT'S THE FINAL REASON WHY WE NEED A CONDO.
UNLESS THEY'RE THINKING ABOUT SELLING THE RETAIL TO A DIFFERENT OWNER, THEY'D HAVE TO GO OUT.
I WOULDN'T THINK YOU'D WANT TO, BUT YEAH, SO, SO IN OUR, IN OUR SOURCING USER RIGHT THERE, HOW WE COULD, THAT WEELL THAT CAN BE SOLD TO IT.
UH, OKAY, SO YOU ARE GONNA SELL, YOU ARE GONNA SELL THE RETAIL.
PUT THE LEAST IN PLACE AND THE RETAIL, WHOEVER OWNS IT STILL HAS TO BE A PARTY TO THE GROUND.
SO I'M, I'M, I AM GONNA GET AN WOULD LIKE AN ANSWER TO DIRECTOR ROBINSON'S QUESTION.
HOW, HOW DOES IT NOT, DOES IT WORK FOR THE TAX EXEMPTION IF WE ARE ONLY, WE ARE NOT TRULY OWNING THE LAND, WE'RE ONLY OWNING AN INTEREST IN A UNIT.
YES, BECAUSE UM, IF YOU WERE TO LOOK AT, YOU KNOW, SOME OF THE, THE, UH, OPINIONS THAT ARE GIVEN ON THE END BOARD, THEY DO SPEAK KIND OF SEPARATELY, UH, TO LAND AND SEPARATELY TO IMPROVEMENT.
SO IF THE PROPERTY THAT IS OWNED BY DALLAS, HFC WILL BE THAT RETAIL, YOU KNOW, CONDO UNIT THAT WILL BE LEASED.
[00:30:01]
STRICTLY, I'M SORRY, UH, UH, RESIDENTIAL, SO LONG AS IT'S STRICTLY RESIDENTIAL, UM, THAT THE HFC IS OWNING, UH, THEN THEIR INTEREST SHOULD, YOU KNOW, BE EXEMPT FOR, FOR ALL PURPOSES OF TAX EXEMPTION.HOW WILL THEY SUB THE LAND IS ITS OWN SEPARATE LINE ITEM.
SO WILL ALL OF THE LAND BE ASSOCIATED WITH THE REMAINDER OF THE BUILDING OR WITH THE, THE CON I MEAN PRESUMABLY IT'LL HAVE ITS OWN SEPARATE ENT ENTRY IN THE DECAB.
YEAH, I MEAN IT'S, UH, WE'RE GOING VISIT WITH, UH, THE DEVELOPER SCOUT TO KEEP THE LAND AND WHERE AND JUST POP OUT.
SO, OKAY, SO THE RETAIL SPACE WOULD BE ITS OWN UNIT? I THINK THE QUESTION IS, ARE YOU ALLOCATING SOME OF THE LAND COST TO THE RETAIL BY SQUARE FOOTAGE? SOMETHING PROPORT? SO ONLY THE IMPROVEMENT WOULD BE CONDO OUT.
SO A HUNDRED PERCENT OF THE LAND COST IS ALLOCATED TO THE, TO THE RESIDENTIAL, THEN WE'LL GET THE GRANT LEASE ON THE ENTIRE VALLEY OF THE LAND.
SO
THAT GROUND IS SUPPORTING THE RETAIL AND I'M JUST FROM AN APPRAIS DEPARTMENT APPRAISER, I'M LOOKING AT THAT SAYING CLEARLY SOME OF THAT GROUND IS BEING USED FOR THE NON-RESIDENTIAL NON-TAX EXEMPT PURPOSES.
'CAUSE IT IS HOUSING OR SUPPORTING THIS COMMERCIAL USE HERE.
UM, I THINK WE'RE GONNA TAKE TILE TO ALL THE WHOLE THING, RIGHT? UNDER OUR PARTNERSHIP TITLE TWO WHAT EXCUSE WE'RE GONNA OWN THE GROUND.
ARE WE GONNA OWN THE GROUND? WE'RE GONNA, WE'RE GONNA OWN THE GROUND AND WE'RE GONNA OWN BOTH RESIDENTIAL AND THE RETAIL AND THE SAME PARTNERSHIP.
BUT YOU CAN CONDO THE RETAIL EVEN THOUGH IT'S OWNED BY THE SAME, YOU DIDN'T EVEN HAVE THROUGH PARCEL.
IT EVEN CAN CONDO THE RETAIL FROM THE RESIDENTIAL AND THIS PROTECTS THE EXEMPTION FOR THE RESIDENTIAL OR WHEREAS IT ALLOCATES FOR THE APPRAISAL DISTRICT, THE RETAIL, THAT'S IT.
THAT'S THE ONLY REASON WE REALLY NEED A CONDU IS TO PROTECT THE TAX EXEMPTION OF THE RETAIL.
IS THE CONDO GETTING SOLD AWAY THOUGH? FROM MY PARTNER? WELL THAT'S THEIR, THAT'S THE, YOU ASSUMING THAT THE LANDOWNER LLC IS GOING TO OWN THE LAND, THE FEE INTEREST WHOLE LAND.
THE THING WE'RE GONNA FEE SIMPLE INTEREST THAT WE'RE GONNA OWN THE WHOLE THING AND THERE'S, AND WE'RE THE GENERAL PARTNER ON THE REST OF IT.
BUT WE CONDO A PIECE OF IT JUST SO WE GO TO THE APPRAISAL DISTRICT AND SAY, HEY WE'VE CONDO THIS, YOU CAN TAX THE RETAIL ALL YOU WANT YOUR HEART'S DELIGHT AND THEN, YOU KNOW, GIVE US THE EXEMPTION ON THE RESIDENTIAL AND THE LAND.
THAT'S MY UNDERSTANDING HOW THIS WILL GO.
BUT NOW THE KEY IS IT GETS MORE COMPLICATED IF YOU GUYS WANNA SELL THE RETAIL RETAIL AND NOW WE'RE NOW WE'RE DEALING WITH THE DIFFERENT PARTY THAT THAT'S GONNA GET ARROGANT.
THAT WAS JUST SOME IDEA WHO JUST LEARNED SOMETHING.
YEAH, LET'S, LET'S NOT DO THAT.
I DON'T THINK THAT'S A GOOD IDEA.
SO THOUGH THOUGH I WAS GOING TO UM, SUGGEST THAT THE MOU RIGHT NOW DOES NOT REALLY SPEAK TO THE CONDO.
AND SO MY RECOMMENDATION WOULD BE THAT WE REQUEST THAT THE MOU BE AMENDED TO SAY THAT WE HAVE TO APPROVE THE CONDO DOCUMENTS.
WE ALMOST DID THE MUTES AND IT WAS GONNA BE SIMILAR.
SO WE HAD ACTUALLY BEEN THROUGH THIS EXERCISE BEFORE.
YOU LET'S JUST, YOU SOMEONE WE ALL DO.
WELL WE USED, UM, OUTSIDE COUNSEL, WE HAD SPECIAL OUTSIDE COUNSEL REPRESENTING US IN REGARD TO THE CONDO REVIEW, WHICH I WOULD ASSUME WE WOULD DO.
AGAIN, THAT WAS IN THAT CASE IT WAS BRACEWELL ON THE MUSE.
BUT YEAH, WE'VE BEEN THROUGH THIS, WE WENT THROUGH THIS DRILL ONCE BEFORE
BUT WE'VE KIND OF BEEN THROUGH THIS PROCESS
WELL, AND AND TYPICALLY WHEN YOU CONDO OUT, YOU DO GET A PROPORTIONAL ALLOCATION OF THE LAND.
LIKE, I MEAN MY ONLY COMP IS MUSEUM TOWER, WHICH IS OBVIOUSLY A DIFFERENT THING, BUT I KNOW SEVERAL OWNERS PAY AN ASSESSMENT ON A PROPORTIONAL SHARE OF THE LAND IN ADDITION TO THEIR IMPROVEMENT, WHICH IS OBVIOUSLY THE VAST MAJORITY OF THE VALUE.
SO IF THEY MAKE ANY ADDITIONAL $2,000 PLANT TAXES.
[00:35:01]
AND, AND I THINK, YOU KNOW, THINKING LIKE A COUNTY APPRAISER, MY THOUGHT WOULD BE JUST THAT AT MOST YOU TAKE A PRO REP SHARE OF WHAT THE APARTMENTS VERSUS RETAIL IS OF THE LAND.AND WE KNOW WE'LL GET THE EXEMPT ON THAT PORTION.
I DON'T KNOW, BUT I MEAN WE TALKING ABOUT 90%.
THE THE COMMERCIAL IS SO TINY.
WE ONLY TALK ABOUT 4,000 RADIAL ACID, BUT IT'S UP 3%.
UM, SO, UH, UM, IN THE, IN OUR MATERIALS IT SPOKE ABOUT ONE BEDROOM AND TWO BEDROOM UNITS.
BUT NOW IN YOUR PRESENTATION YOU'RE MENTIONING STUDIOS.
SO, SO ONE WHEN I SEND UP FOR SOME REASON BRADON OFF MY EXCEL SHEET.
SO I, I HAD TO CONVERT IT INTO PDF TO CAN JEOPARDIZE THE THERE AH, LAST NIGHT THE, RIGHT, SO WE HAVE 61 BEDROOM.
BEDROOM, SO, AND UH, WE HAVE 60 81 CO WITHOUT, SO.
OH, SO I GUESS, UM, SO THOSE NUMBERS THAT YOU PUT NEXT TO, NEXT TO EACH OF THOSE, UH, UNIT TYPES, SOME OF THOSE MIGHT BE STUDIOS.
SO WE HAVE THE, THE EXCUSE THOSE SCREEN POTENTIALLY.
AND MARCY, THIS IS BRAXTON FROM HILLTOP.
UM, THE, THE, THE CORRECT UNIT MIX WAS UPLOADED TO THE COLLABORATIVE SITE EARLY THIS MORNING.
SO IT, THE, THE CORRECT ONE IS THERE TO, THAT WAS SHARED, BUT IT WAS JUST SHARED, YOU KNOW, VERY LATE.
'CAUSE I NOTICED THE, THE, UH, THE AIR LATE YESTERDAY.
IT'S A DIFFERENT, A DIFFERENT SPREADSHEET THAN THE PERFORMA.
I GUESS SOMEHOW I DIDN'T NOTICE THAT SHEET.
ARE THERE ANY OTHER QUESTIONS, DIRECTOR? UH, MAYBE A QUESTION FOR YOU ALL.
NO, YOU WOULDN'T DO IT, BUT I DO KNOW A LOT OF DOWNTOWN APARTMENT OR APARTMENT BUILDINGS, BIG MASSIVE AIRBNBS, UH, I MEAN THE BUTLER BUILDING, WHICH IS AN APARTMENT COMPLEX RIGHT NEXT TO HERE IS LITERALLY A HOTEL BECAUSE OF THE INCOME AND COMP INCOME REQUIREMENTS AND COMPLIANCE WITH THAT.
THERE'S NO WAY IT COULD BE LEASE IT.
I MEAN IS THERE A MEAN, IS THERE A RULE LAW STATUTORY? IS THERE SOMETHING IN OUR DOCUMENTS THAT GONNA, OR IS THAT JUST A FUNCTION OF THE FACT THAT YOU HAVE TO HAVE PEOPLE WITH INCOMES AND ALL THAT? I STILL WANT THE POSSIBILITY OF THIS, ANY OF THESE UNITS, LET'S SAY YOU SOLD, YOU'RE OUT.
I THINK THE CONDOMINIUM DOCUMENTS COULD PROVIDE WHETHER PEOPLE CAN LEASE, RIGHT? I WANT AND TOTALLY WRITTEN IN BLOOD IN SOME WAY.
'CAUSE I SWEAR THAT'S IN OVER HALF OF THE APARTMENTS IN DOWNTOWN ARE ALL AIRBNBS OR CORPORATE TENANTS.
AND BECAUSE THAT COULD JEOPARDIZE THE TAX EXEMPTION IF THAT WERE TO HAPPEN.
SO I MEAN IT JUST HAS TO NEVER HAPPEN.
AND THE CONSTRUCTION LIKE THAT, UM, 'CAUSE FOR 21, UH, TO TAKE, TO HAVE FREE FINANC TEND 70 GONNA BE A SHORT NO RESTRICTION.
IT JUST, IT NEEDS TO BE IN THE PART, I THINK IT NEEDS TO BE IN THE PARTNERSHIP DOCUMENTS IN SOME WAY, SHAPE, OR FORM.
JUST, OR MAYBE THE CONDO DOCUMENTS.
WELL THE CONDO DOCUMENTS IS REALLY JUST ABOUT SEPARATING THE RETAIL.
YEAH, WE HAVE TO BE IN THE, IN THE REGULATORY.
THE REGULATORY, YEAH, WE CAN CERTAIN AND THERE IS, YOU KNOW, THERE IS A LANGUAGE TO THAT EFFECT AND THE TAX CREDIT, UH, REGULATORY GRIEVANCE.
BUT WE CAN PUT SOMETHING SIMILAR IN THIS ONE.
THERE'S PROBABLY NO REASON NOT TO PUT THAT IN ALL OF THEM.
RIGHT?
YEAH, IT'S JUST A BIGGER ISSUE DOWNTOWN AB.
ANY OTHER QUESTION? ARE YOU CONFIDENT IN YOUR WINDOW BUDGET? UM, YEAH.
SO
SO RIGHT NOW WE HAVE A SYSTEM, WE HAVE SUPPLIERS, WE HAVE
SO WE DID ONE WITH THE SAME GENERAL CONTRACTOR AND THE TEAM FOR A YEAR.
NOW
[00:40:01]
NO OTHER QUESTIONS.IT'S ALWAYS A LONGER DISCUSSION.
WHEN IT'S FIRST TIME THINGS COMING BEFORE US.
IT'S GOES A LOT QUICKER WHEN, WHEN WE'RE JUST APPROVING DOCUMENTS.
LEMME JUST ADD, I I KNOW MOSTLY YOU PROBABLY HAVE WALK.
SO SEVERAL MONTHS AGO, MAYBE SIX MONTHS AGO I BOUGHT THIS WITH IKE.
UM, IT IT HAS A LOT OF POTENTIAL.
LIKE THE LOCATION IS WONDERFUL.
UM, I WALKED THROUGH THE MODEL UNIT THEY HAVE SET UP IN THE, UH, BUILDING ON PACIFIC, ACTUALLY VERY INNOVATIVE.
I PROJECT, I THINK THIS HASN'T BEEN DONE BEFORE BY THE HFC, BUT I'M SURE THERE IS A MARKET DOWNTOWN FOR SOME MORE OFFICE CONVERT.
SO WE'LL SEE HOW THIS ONE GOES.
BUT, UM, I'M, I'M HOPEFUL THAT WE CAN, WE CAN PROVIDE MORE HOUSING ESPECIALLY WITH, WITH THIS TYPE OF CONSTRUCTION PRODUCT BECAUSE THERE'S GONNA BE A BIGGER MARKET HERE IN THE NEXT 10 YEARS.
BUT LIKE OFFICE SPACE IS PROBABLY THE MOST CHALLENGING SPACE.
UH, THERE IS, UH, YOU KNOW WHAT TO DO WITH IT.
IT'S JUST, IT'S JUST KIND OF BEING DOWN THE BIGGEST MINDS IN REAL ESTATE RIGHT NOW.
UH, BUT PARTICULARLY WHEN YOU'RE TALKING ABOUT PRE 1960S OFFICE SPACE AND DOWNTOWN, IT'S MORE COMPLICATED.
SO THE FACT THAT WE HAVE A SOLUTION, THEY BROUGHT A SOLUTION FOR SOME OF THAT SPACE IS GREAT.
AND FROM THE FACT OF TAKING SOMETHING OFF THE TAX ROLLS, THAT'S GONNA BE THE LEAST IMPACTFUL IN SOME OF THESE, SOME OF THESE OBSOLETE OFFICE BUILDINGS DOWNTOWN.
I LOVE THE IDEA YOU WANNA TALK ABOUT.
WHAT'S THE OPPORTUNITY COST, ORIGINAL OPPORTUNITY COSTS THAT DISCOVERING THE WAY IT IS FOR A LONG TIME.
IT'S NOT BY, SO IT'S AT 10% OCCUPIED.
I THINK IT'S NO, IT'S NOT GOOD.
WHAT'S THE SIZE OF ROLE PLAY? UM,
IT'S THE ONLY OFFICE THAT WEARS A OFF CONFIGURED ON THAT.
WELL DID THE SELLER GO THROUGH A SALE PROCESS OR DID YOU GUYS WE PARTNER THE SELLER FOR THE SELLER VISIT, BUT THE OWNER OF THE BUILDING, SO THEY ORIGINALLY BOUGHT AS AN OFFICE BUILDING.
THEY WERE TRYING TO WHITE IONS.
IT'S IN AN OFFICE BUILDING, BUT SOME CHALLENGE THAT BUILDING
IT'S GOOD, ISN'T IT? I REMEMBER HIS FIRST NAME.
GOT ANY OTHER QUESTIONS? ALRIGHT, WELL THANK YOU FOR HEARING ALL OF OUR CONCERNS.
I'LL MOVE TO APPROVE THE ITEM AND ALL SOME PARTS AS WRITTEN WITH UH, CHANCE TO BE TEST.
UM, DIRECTOR MARSHALL C APPROVE TREASURER PHARAOH APPROVE.
DIRECTOR HINTON APPROVE VICE PRESIDENT GARCIA APPROVE.
DIRECTOR MOORE APPROVE SECRETARY PAGE APPROVE.
NEXT ITEM ON THE AGENDA IS ITEM EIGHT.
RESOLUTION FOR THE RIDGE OF LUKE 12 TO BE LOCATED AT 1200 NORTH WALTON WALKER BOULEVARD IN THE CITY OF DALLAS, DALLAS COUNTY, TEXAS.
CONSIDER AN ADOPT A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH LDG MULTIFAMILY LLC FOR THE ACQUISITION CONSTRUCTION FINANCING, DEVELOPMENT AND OPERATION OF THE RIGID LUKE 12 AND APPROXIMATELY 300 UNIT MULTIFAMILY RESIDENTIAL DEVELOPMENT.
B, CONSIDER AND ADOPT A RESOLUTION APPROVING THE TRANSFER AND ASSIGNMENT OF DHFC, THE BRIDGET BOOT, 12 G-P-L-L-C, TEXAS LIMITED LIABILITY COMPANY, THE COMPANY TO THE CORPORATION AUTHORIZING THE DESIGNATION OF THE CORPORATION AS THE SOLE MEMBER OF THE, OF THE COMPANY IN APPROVING THE FORM AND SUBSTANCE OF AN AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF.
C CONSIDER AN ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH THE CORPORATION AS THE SOLE MEMBER WITH THE TEXAS SECRETARY OF STATE TO BE NAMED DHFC, THE RIGID LOOP 12 DEVELOPER LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF.
AND D, CONSIDER AND ADOPT A RESOLUTION APPROVING THE CREATION OF A LIMITED LIABILITY COMPANY WITH
[00:45:01]
THE CORPORATION AS THE SOLE MEMBER WITH THE TEXAS SECRETARY OF STATE TO BE NAMED DHFC, THE BRIDGET LOOP 12 LANDOWNER LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF.THANK YOU PRESIDENT HEALTH FANS.
SO WE HAVE THIS OPPORTUNITY TO APPROVE THE MOU FOR THE RIDGE OF 12.
WE PREVIOUSLY INDUCED BONDS FOR THIS, ALTHOUGH T-D-H-C-A WILL BE, UM, ISSUING THE BONDS, I THINK THEY RECEIVED A MORE FAVORABLE CARRY FORWARD, UM, ALLOCATION.
SO I JUST GIVE THEM A LITTLE MORE FLEXIBILITY ON THIS.
BUT JAKE IS HERE TO PRESENT, UM, LIKE TO BIDEN COME UP BY NOW.
I HOPE YOU GUYS DON'T KNOW JAKE
UH, WE'VE DONE SEVERAL PROJECTS WITH THEM.
UM, I I SUSPECT THIS WILL BE OF THE SAME SORT AND YEAH, IT'S A LITTLE RINSE AND REPEAT ACTION HERE.
UM, DO WE HAVE, DO WE HAVE THE SLIDES?
IT'S FOR, FOR HIS BENEFIT AND EVERYBODY ELSE'S TOO, IN CASE FOLKS, BUT FOR MOST OF YOU IT'S PROBABLY GONNA LOOK REAL SIMILAR.
UM, WE CAN JUST GO TO, UM, AND I APOLOGIZE, I CAN'T SEE THAT FAR.
SO SOME OF THIS IS GONNA BE OFF MEMORY HERE.
UM, BUT FOR ANYBODY THAT'S NEW, THAT'S FORGOTTEN, I'M JAKE BROWN WITH LDG DEVELOPMENTS.
UH, I THINK WE'VE GOT SIX OR SEVEN AND SEVERAL MORE JUST KIND OF BEEN PRE-DEVELOPMENT PIPELINE.
UM, PRE-DEVELOPMENT PIPELINE WITH YOU GUYS.
AND SO, UM, AS AARON MENTIONED A MOMENT AGO, OBVIOUSLY A A LONG TIME, RELATIVELY LONG TIME PARTNER WITH Y'ALL AND, UH, THIS IS OUR NEXT ONE THAT WE'RE BRINGING TO YOU HERE.
BUT YEAH, WE'VE GOT, UH, OVER 20,000 UNITS NOW.
UH, I THINK ACROSS SEVEN STATES.
YOU PREDOMINANTLY WHAT YOU'RE GONNA SEE FROM US IS THIS, THE BOARD ATTEST TO THIS IS, YOU KNOW, THREE AND FOUR STORY GUARD STYLE WALKUP PRODUCTS, SURFACE PARK, THAT'S JUST KIND OF OUR BREAD AND BUTTER AND WHAT WE GENERALLY DO.
UM, AND SO I THINK ANOTHER THING THAT'S IMPORTANT TO NOTE, A LAPTOP, RIGHT? UM, ANOTHER THING THAT'S IMPORTANT TO NOTE IS WE'VE GOT A, A VERY STRICT DEVELOPMENT HOLD STRATEGY.
SO, UH, ALL THE DEVELOPMENTS THAT WE BRING TO YOU GUYS OR TO ANYBODY FOR THAT MATTER, WE'RE, WE'RE INTERESTED IN, IN DEVELOPING THEM AND HOLDING THEM FOR THE LONG TERM.
MY CONTROLLING THE SCREENERS IS, NO, NO, NO.
UM, SO JUST A BRIEF SUMMARY OF THE DEVELOPMENTS BEFORE YOU TODAY WE'RE TALKING ABOUT THE RIDGE AT LOOP 12, UH, 1200 NORTH WALTON WALKER BOULEVARD, UH, IN WEST DALLAS.
UH, THIS IS IN CITY COUNCIL DISTRICT SIX, THIS ONE'S BEEN AROUND FOR A MINUTE.
IT'S, IT'S GONE THROUGH THE ZONING CHANGE PROCESS THAT WAS ACTUALLY FORMALLY APPROVED BY CITY COUNCIL EARLIER IN THE YEAR, UH, IN JUNE.
SO THE, IT'S PART OF A PLAN DEVELOPMENT DISTRICT, BUT IT FOLLOWS MF TWO A MULTIFAMILY BASED ZONING.
SO THE ZONING IS IN PLACE, UH, THEY'VE GOT ALL THE APPROVALS THAT WE NEED FROM THAT.
UM, IT'S ALSO BEEN TO CITY COUNCIL FOR THE, UH, RESOLUTION, NO OBJECTION TO SUBSEQUENT RESOLUTIONS THAT ARE NEEDED IN CONJUNCTION WITH THE, UH, TAX CREDIT APPLICATION.
UM, SO FOR ALL INTENTS AND PURPOSES, WITH THE EXCEPTION OF OF THIS BOARD, I GUESS, UH, WE'VE GOT ALL THE ITEMS APPROVED THAT REQUIRE, UM, A BODY TO VOTE ON WITH THE EXCEPTION OF THE DALLAS HFC.
UH, BUT JUST A HIGH LEVEL SUMMARY HERE.
300 UNITS, 1, 2, 3, 4 BEDROOM.
UM, YOU KNOW, THIS ONE'S A LITTLE BIT UNIQUE IN THE SENSE THAT IT'S GOT A MIX OF AFFORDABILITY.
SO IT'S GOT SOME 50%, SOME 70% A MI UNITS.
UM, AND THEN THE BULK OF 'EM ARE 60% A MI.
THAT'S REALLY JUST A FACTOR OF THE REQUIREMENT FROM T-D-H-C-A UNDER THE, THAT TAX CREDIT ASSISTANCE PROGRAM FUNDS THAT WE'VE GOT ON THIS DEAL.
SO, UH, WE WERE FORTUNATE ENOUGH TO BE, UH, I GUESS INFORMALLY BUT SOON TO BE FORMALLY AWARDED $10 MILLION OF TCAP FUNDS FROM T-D-H-C-A.
UM, SO WE'VE GOT, UH, A BOARD MEETING WE'RE ON TRACK FOR IN JANUARY THAT WILL, UH, HOPEFULLY FORMALLY APPROVE THE TAX CREDIT AWARD AND THEN ALSO THE TCAP LOAD THAT'S TACKED ON THIS PROJECT.
UM, JAKE, COULD YOU, UH, TELL US WHAT THE TCAP IS? YEAH, SO, UM, T-D-H-C-A HAS, THEY CALL 'EM THE TCAP FUNDS TAX CREDIT ASSISTANCE PROGRAM FUNDS.
UM, AND MANY YEARS AGO AFTER THE FINANCIAL CRISIS IN OH EIGHT, UM, T-D-H-C-A
[00:50:01]
AND I GUESS REALLY THE TAX CREDIT PROGRAM AS A WHOLE LOOKED TO, TO SUPPLEMENT WITH A, ANOTHER FINANCING MECHANISM TO HELP GET DEALS THAT, I MEAN, OBVIOUSLY AT THAT TIME IT WAS AN EXTREMELY CHALLENGING ECONOMIC CLIMATE.AND SO, YOU KNOW, PEOPLE WERE PAYING, YOU KNOW, 50 CENTS FOR TAX CREDITS.
UM, AND SO THEY CAME UP WITH THIS TCAP MECHANISM.
AND SO, UM, SPECIFIC TO T-D-H-C-A, WHAT HAPPENS IS WHEN THEY GOT THOSE FUNDS, THEY DEPLOYED 'EM OUT, THEY GET REPAID BACK TO THE DEPARTMENT.
AND SO THEN, YOU KNOW, EVERY FEW YEARS WHEN THOSE FUNDS GET REPLENISHED, THEY ISSUE ANOTHER RFP OR ANOTHER NOFA A NOTICE OF FUNDING AVAILABILITY FOR MORE TCAP FUNDS.
AND SO THOSE FUNDS HAVE OBVIOUSLY PREVIOUSLY EARNED INTEREST ON THEMSELVES AND THEN HAVE COME BACK INTO A HIGHER AMOUNT OF THE DEPARTMENT THAN THEY REDEPLOY 'EM BACK OUT INTO THE WORLD.
AND SO 2024 IS ONE OF THOSE TIMES WHEN THEY'RE REDEPLOYING 'EM BACK OUT INTO THE WORLD.
UM, BUT TO THAT POINT, I MEAN, IT, IT'S A LOAN, IT'S NOT SONIC MARKET, SO THERE'S AN INTEREST RATE TACT ONTO IT AND YOU, IT'S GOT A HARD PAY COMPONENT.
WHAT I REALLY MEAN BY THAT, IT'S REQUIRED TO BE REPAID ON AN ANNUAL BASIS.
SO IT'S NOT SOMETHING WE'RE, IT'S ONLY A PAY PAID OUT OF AVAILABLE CASH FLOW AND THEN ACCRUES OVER TIME.
UM, YOU KNOW, IT, IT, IT'S TREATED JUST LIKE A CONVENTIONAL LOAN WOULD BE THE ONLY DIFFERENCE BEING IS IT'S GOT A LOAN INTEREST RATE ON IT OR WHAT PERCENT.
UM, THAT'S WHAT KINDA AMORTIZATION, IT'S 40 YEAR AMORTIZATION.
SO IT, IT TRACKS WITH WHATEVER YOUR SENIOR DEBT WILL BE.
SO IN THIS INSTANCE, UH, WE'VE GOT A A 40 YEAR ANN PRODUCT ON IT FROM NEWPOINT CAPITAL.
UH, AND SO IT'LL BE CONSUMMATE WITH THAT SAME TERM.
ANY OTHER, THAT'S PROBABLY A GOOD STOPPING POINT JUST TO TALK ABOUT PCAP.
DOES ANYBODY ELSE HAVE QUESTIONS ABOUT PCAP? THAT'S OBVIOUSLY A LITTLE BIT DIFFERENT THAN WHAT YOU WOULD TYPICALLY SEE ON AN LDG DEAL, BUT HAPPY TO ANSWER QUESTIONS SPECIFIC TO THAT IF YOU GUYS HAVE ANY.
UM, BUT JUST IN CLOSING, JUST KIND OF THE DEVELOPMENT SUMMARY, THE AMENITY PACKAGE, WHICH WE'LL SEE SOME PHOTOS TOWARDS THE END.
IT'S, IT'S PRETTY STANDARD SWIMMING POOL, FITNESS CENTER, CLUBHOUSE, UM, BUSINESS CENTER.
THIS ONE WILL ACTUALLY HAVE A WALKING TRAIL, UM, AROUND THE PERIMETER OF THE PROPERTY.
UH, BUT I WOULD SAY PRETTY, PRETTY RUN OF THE MILL FOR AN FDG PRODUCT.
UM, AND THEN WE'VE GOT A RENDERING THERE JUST TO KINDA GIVE YOU A, AN ILLUSTRATION OF THE PRODUCT TYPE.
UH, SO FOR THOSE OF YOU THAT HAVE BEEN AROUND FOR A MINUTE LAST YEAR WE DID, UH, THE CROSSING OF CLARK CREEK AND THE TERRACE HIGHLAND HILLS, WHICH CLOSED IN JULY OF 2023.
SAME ARCHITECT, SAME BUILDING STYLE, UH, THAT LOOK SIMILAR.
YOU MAY HAVE EVEN SEEN THAT RENDERING BEFORE.
UM, SO SAME CASTED CHARACTERS ON THE DESIGN SIDE THERE.
UM, LEMME GO TO THE NEXT SLIDE PLEASE.
OKAY, SO THE NEXT COUPLE SLIDES ARE JUST INTERIOR FINISHES.
SO, UM, AGAIN, GRANITE COUNTERTOPS, WOOD LOOK FLOORING, ENERGY EFFICIENT APPLIANCES.
UH, AND THEN I'VE ALREADY TALKED ABOUT THE EXTERIOR AMENITIES AND COMMON AREAS AS FAR AS POOL, FITNESS CENTER, CLUBHOUSE AND ALL THAT.
I THINK THE LAST SLIDE JUST TALKS ABOUT THE MOU.
UM, SO THE MOU ON THIS ONE IS DIFFERENT TO ME.
I DON'T THINK IT'S DIFFERENT TO YOU GUYS ON THIS POINT.
MY UNDERSTANDING IS THIS IS, THIS IS KIND OF THE MODEL THAT YOU GUYS ARE MOVING TOWARDS AS FAR AS, UH, MORE OF A FIXED PAYMENT ON, ON THE FEE SIDE AS, AS OPPOSED TO SHARING CASH FLOW.
SO, UM, YEAH, I THOUGHT IT WAS PROBABLY PROVEN JUST TO KINDA GIVE YOU A HIGH LEVEL SUMMARY AND, AND TALK THROUGH THIS AND ANSWER ANY QUESTIONS.
BUT JUST REAL HIGH LEVEL, UM, WHICH IS THIS FIRST PART OF THE DEVELOPER FEE IS WITH WHAT I WOULD SEE OR EXPECT ON A-A-D-H-F-C TAX CREDIT TRANSACTION, AT LEAST WITH LDG AS FAR AS THE 75 25, UM, SPLIT OF, OF DEVELOPER FEE, 75% GO LDG AND THE REMAINING 25 GOING TO DHFC, UM, YOU'VE GOT ON THERE.
I THINK IT'S DEFINED IN THE MOU IS AN ADMINISTRATION FEE.
I KEEP LOOSELY REFERRING TO IT AS A GROUND LEASE PAYMENT, WHICH I THINK IS TECHNICALLY NOT CORRECT.
UM, BUT IT'S, IT'S EFFECTIVELY WHAT IT FUNCTIONS AS.
SO, UM, ON THIS ONE, IT'S CONTEMPLATED IN THE MOU AS A $50,000 ANNUAL PAYMENT TO DHFC WITH A 3% ANNUAL ESCALATOR.
UM, AND THEN, UH, THAT'S FOR YEARS ONE THROUGH 15.
SO THE WAY THAT WE'VE STRUCTURED THIS ONE, UH, IT MAY BE CONSISTENT WITH OTHERS THAT YOU'VE DONE, I DON'T KNOW, BUT, UH, YEARS ONE THROUGH 15 CONTEMPLATE THIS ADMINISTRATION FEE OF $50,000.
AND THEN AFTER THAT, STARTING IN YEAR 16, WE'LL GO TO WHAT I WOULD CALL THE TRADITIONAL CASH FLOW SPLIT OF 64.
UH, SO I THINK THAT'S PROBABLY IMPORTANT TO POINT OUT.
AND THEN THE SAME CONSISTENT, UH, CASH FLOW SPLIT OF 60 40 IS TRUE FOR ALSO REFINANCE EVENTS.
AND THEN SALE SAME 60 40 SPLIT.
UM, YOU'LL SEE IN THERE IT'S ALSO GOT THE PARTNERSHIP MANAGEMENT FEE OF $10,000 TO DHFC AND THEN A SEPARATE $10,000 PARTNERSHIP MANAGEMENT FEED AT LDG.
UM, AND THEN LAST BUT CERTAINLY NOT LEAST, ERIN MENTIONED THIS A MOMENT AGO AND I THINK WE HAD MENTIONED IN A PREVIOUS BOARD MEETING, UM, WE'D OBVIOUSLY GOT YOU GUYS TO APPROVE A BOND INDUCEMENT FOR THIS SOMETIME BACK.
AND SO LIKE TYPICALLY ALWAYS ON THESE, WE ALSO PURSUE THE OTHER AVENUE OF GOING WITH T-D-H-C-A JUST TO DOUBLE OUR CHANCES OF GETTING A BOND RESERVATION.
[00:55:01]
UM, SO AT THE BEGINNING OF THIS YEAR, WE WERE FORTUNATE ENOUGH TO GET A BOND RESERVATION, THE AMOUNT OF $50 MILLION THROUGH TRADITIONAL CARRY FORWARD WITH T-D-H-C-A.AND I, I THINK THE OTHER IMPORTANT THING TOO, WITH THE TRADITIONAL CARRY FORWARD ALLOCATION, YOU'VE GOT THREE YEARS OF TIME THAT YOU RECEIVED THE RESERVATION.
SO I THINK WE TECHNICALLY GOT IT ON JANUARY 5TH, 2024, BUT THE ISSUE DATE FOR THAT RESERVATION WAS DECEMBER 31ST, 2023.
SO YOU'VE GOT THREE YEARS FROM THAT POINT.
SO ALL THE WAY TO 2026, UM, DECEMBER 31ST, 2026 BEFORE IT EXPIRES.
OBVIOUSLY THAT'S MUCH LONGER THAN THE TYPICAL 180 DAY DEADLINE, UM, THAT'S ASSOCIATED WITH THE TRADITIONAL RESERVATION.
SO, UH, WE CHOSE TO GO THAT ROUTE AND UH, IT'S DEFINITELY PROVEN TO BE THE RIGHT DECISION BECAUSE THE ZONING AND THE PERMITTING AND EVERYTHING ELSE ASSOCIATED WITH IT HAS TAKEN MUCH LONGER THAN WE EVER COULD HAVE IMAGINED IN OUR WILDEST DREAMS. UM, SO THAT'S, UH, THAT'S IMPORTANT TO NOTE FOR NO OTHER REASON THAT, UH, UNFORTUNATELY WE'RE NOT CONTEMPLATING YOU GUYS AS BEING THE BOND ISSUER, WHICH MEANS NO FEE.
NO, I PROBABLY EXTENDED ENOUGH OXYGEN.
WHAT, WHAT ELSE IS INVOLVED IN THE PD? UM, REALLY THE ONLY MAIN DIFFERENCE IN A PD VERSUS BASE ZONING IS THE REQUIREMENT FOR A DEVELOPMENT PLAN.
AND YOU ALSO WRITE YOUR OWN ORDINANCE.
SO WHEN WE, MOST OF THESE, WHEN WE DO A ZONING CHANGE, WE TRY TO DO A PD FOR MULTIPLE REASONS.
ONE, WE GET TO WRITE OUR OWN ORDINANCE, WE GET TO WRITE OUR OWN PARKING REQUIREMENTS, YOU KNOW, DESIGN STANDARDS AND WHATNOT.
UM, BUT ALSO TWO I MENTIONED THE DEVELOPMENT PLAN REQUIREMENT.
YOU KNOW, WHEN WE'RE GOING THROUGH THE PROCESS AND THE ZONING CHANGE, BEING ABLE TO HAVE AN ILLUSTRATION OF A SITE PLAN THAT'S ATTACHED TO THE ZONING ORDINANCE AND TELL THE COMMUNITY, TELL THE COUNCIL MEMBER, TELL CITY PLAN MISSION, WHOEVER IT IS, YOU KNOW, THIS IS WHAT WE'RE PLANNING TO DO, THIS IS HOW WE'RE GONNA DO IT, IT'S NOT GONNA CHANGE.
IF IT DOES CHANGE, WE'VE GOTTA COME BACK TO YOU AND GET APPROVAL.
AND I THINK DOING IT THAT WAY, YOU KNOW, JUST PROVIDES FOLKS WITH AN EXTRA LEVEL OF CERTAINTY THAT WHAT WE'RE SAYING WE'RE GONNA DO IS WHAT WE ACTUALLY HAVE TO DO.
BECAUSE I MEAN, I, I THINK THERE'S INSTANCES OUT THERE OF FOLKS SAYING, YOU KNOW, YEAH, WE'RE GONNA BUILD ONE BUILDING THAT'S TWO STORIES TALL ON THIS SITE AND UH, YOU KNOW, IT'S NOT GONNA BE IMPOSING AT ALL.
JUST GIMME M MF TWO A BASE SONY, AND THEN YOU TURN AROUND, THEY'VE GOT MF TWO A BA TWO A BASE AND THEY'RE DOING SOMETHING TOTALLY DIFFERENT.
SO, UM, YOU KNOW, I I THINK IT DIDN'T, IT WASN'T THE PD BECAUSE IT HAS SOME OTHER, UM, NO SURROUNDING LEASE.
NO, I MEAN, AND THAT'S, YOU KNOW, THIS THE ISSUES OF RESIDENTIAL PROXIMITY SLOPE, UM, YOU KNOW, THE PROXIMITY TO THE SINGLE FAMILY NEIGHBORHOODS STILL HAVE TO ABIDE BY THAT.
I MEAN REALLY AND TRULY, IT'S JUST KIND OF, IT'S REALLY A
BEING ABLE TO WRITE OUR OWN PARKING CODE, UH, AND THEN ALSO THE DEVELOPMENT PLAN COMPONENT.
BUT YOU KNOW, IF YOU READ THROUGH THE DEVELOPMENT PLAN, IT FOLLOWS MF TWO A BASE.
SO IT'S VERY, VERY SIMILAR WITH THE EXCEPTION OF A COUPLE MEDIATIONS.
YOU BROUGHT THIS UP LAST TIME.
DID YOU FINALIZE OR MAKE A DECISION EITHER WAY ABOUT ACCESS TO TAKE ARTILLERY EITHER CAR? YES.
SO WE'LL HAVE BOTH VEHICULAR AND PEDESTRIAN ACCESS TO WHAT I WILL CALL NORTH TILLERY.
I THINK BOTH THE SOUTH AND THE NORTH END OF IT WHERE THEY DISCONNECT OR, OR CALLED NORTH TILLERY.
BUT UH, WE'LL HAVE PEDESTRIAN VEHICULAR ACCESS TO THAT NORTH CONNECTION OF NORTH TILLERY.
UM, AND SO I DON'T, I THINK ON THE SITE PLAN IT'S INCLUDED IN THE PRESENTATION.
IT DOES NOT SHOW THAT, BUT I CAN ASSURE YOU THAT THAT'S HOW IT WAS APPROVED AT CPC.
IT'S HOW IT'S BEING PERMITTED.
UH, MATTER OF FACT, I MENTIONED THE DEVELOPMENT PLAN A MOMENT AGO.
WE'RE OBLIGATED TO BUILD IT THAT WAY 'CAUSE THAT'S HOW IT'S APPROVED THE PLAN DEVELOP.
BUT YES, BOTH VEHICULAR PEDESTRIAN AND UNTIL P I'M SORRY, UH, FOR SAFETY, IT IS THE ENTIRE LOT THAT YOU HAVE GOING TO BE EITHER IN OR MONITORED.
SO STANDARD AT, AT EVERY LDG PROPERTY, UH, PERIMETER GATE, UH, PERIMETER FENCE ACCESS, OR SORRY, PERIMETER FENCING, CONTROLLED GATED ACCESS.
UH, AND THEN WE'LL ALSO HAVE SECURITY CAMERAS PLACED AROUND THE PROPERTY.
ANOTHER THING TOO, I SAID ALL THAT WAS STANDARD 'CAUSE IT IS, BUT ONE THING THAT'S NOW STANDARD, WHICH PROBABLY WASN'T DONE ON PREVIOUS PROPERTIES IS, UH, WORD INSTALLING FLOCK CAMERAS AT EACH OF THE GATES JUST TO MONITOR THE LICENSE TAGS, LICENSE PLATES THAT ARE COMING, UH, THROUGH THE PROPERTY.
SO WE KNOW EXACTLY WHO'S COMING IN, WHO THEY ARE, WHEN THEY'RE COMING, WHERE THEY'RE GOING, WHAT THEY'RE DOING, HOW LONG THEY'RE THERE.
DO YOU, YOU ALSO OWN THE LOT NORTH ON THE WEST SIDE? THAT GOES ALL THE WAY UP INTO ANDERSON AVENUE? UH, LET ME GET MY BEARING HERE.
THE TRIANGULAR LOT OR ANOTHER, UM, LET'S SEE, IT'S ON THE ACCESS ROAD I THINK GOES ALL THE WAY NORTH TO THE BRIDGE.
OH, I KNOW WHAT YOU'RE TALKING ABOUT.
WE DON'T OWN THAT AND, UH, DON'T PLAN TO PURCHASE IT.
THAT'S, THAT'S RETAINED BY, SO THE GUY THAT IMMEDIATELY TO THE NORTH OF US THAT OWNS THE, UH, IT'S LIKE A MAN, I'M PRETTY SURE IT'S A CABINET MANUFACTURER SLASH DISH DISTRIBUTOR.
UH, HE OWNS THIS PROPERTY THAT WE'RE UNDER CONTRACT TO PURCHASE AND
[01:00:01]
UH, HE ALSO OWNS THAT LITTLE, THAT LOT THAT YOU'RE TALKING ABOUT AS WELL.BUT YOU WILL OWN THE TRIANGLE.
I'LL OWN THE BIG PARCEL, BUT NOT THE LITTLE TRI, NOT THE LITTLE GREEN TRIANGLE ON THE NORTH SIDE.
IS IT GONNA BE BELTED INTO GREEN SPACE OR IS THAT IT'S NOT WHAT, WHAT HIS PLAN IS OR WHAT HIS PLAN WAS IS HE WAS GONNA PARK TRUCKS ON IT.
UH, BUT CANDIDLY THE CITY PLANT COMMISSIONER WAS NOT HAPPY ABOUT THAT.
SO, UH, SHE UH, ENSURED THAT, UH, THE WAY THAT WE ZONED IT WOULD PREVENT HIM FROM DOING THAT JUST TO, SO IF HE DID DO IT, HE WOULD BE ABLE TO BE CALLED OUT ON ILLEGAL USE PROPERTY? NO, WE'RE NOT, WE'RE NOT PLANNING TO PURCHASE IT, NOT PLANNING TO DEVELOP THIS GREEN SPACE.
SERGEANT PAGE, DID YOU HAVE A QUESTION? UM, YEAH, I'M LOOKING AT THE, UM, STAFF PRESENTATION ON THE SEVENTH CASE FROM MAY AND ON THE DEVELOPMENT PLAN, THIS IS, THE ACCESS TO TILLERY IS INDICATED AS BEING ONLY FOR EMERGENCY.
SO NO, WELL IT'S, IT'S PROBABLY WORDED NOT REAL CLEAR OR INCORRECTLY, BUT WHAT THE ACTUAL PLAN FOR IT IS, IS IT'LL BE EMERGENCY ACCESS INTO THE PROPERTY, BUT YOU CAN STILL EXIT THROUGH THAT.
SO IF YOU WANTED TO LEAVE AND GO TO THE LIBRARY OR TO THE ELEMENTARY SCHOOL OR LEAVE AND GO SOUTH TO DAVIS, YOU COULD STILL EXIT THROUGH THAT.
YOU JUST COULD NOT RETURN AND GET YOUR BACK TO THE PROPERTY.
UH, IT SAYS DARK STYLE, RIGHT? YES SIR, IT IS.
AND IT COSTS $300,000 CYBER WORK.
I MEAN YOU'LL SEE THAT IT'S GOT, UH, I THINK IT'S SHOWED ON THERE.
IT'S GOT, THERE'S A STREAM RUNNING THROUGH THE CENTER OF THE PROPERTY.
AND NOT TO SOUND DRAMATIC, BUT I MEAN IT RIGHT NOW IT JUST KIND OF GENERALLY THE GRADE KIND OF GOES LIKE THIS, LIKE A HUGE RATED TO THE CENTER OF THE SITE.
SO BUILDING RETAIN WALLS ON YEAH, SO YOU KNOW, THE, THE COST FIGURE THAT YOU SEE IN THERE IS NO SMALL AMOUNT FOR NO OTHER REASON THAN JUST THE SITE WORK OR DIRT.
YEAH, I OBVIOUSLY CONSTRUCTION COSTS HAVE GONE UP, BUT DANG THAT WAS, YEAH, WELL YOU AND PART OF IT TOO.
I MEAN IT'S, YOU KNOW, THERE'S A LITTLE BIT OF UNCERTAINTY ON EXACTLY WE'VE DONE TO GEOTECHNIC REPORT, BUT YOU KNOW, THOSE ARE AS GOOD AS THREE OR FOUR INCH BORING IN THAT LOCATION.
GENERALLY A GOOD INDICATION OF, OF WHAT YOU'VE GOT.
BUT YOU KNOW, IT'S ALSO POSSIBLE THAT, YOU KNOW, WE'RE GONNA HAVE TO BRING IN SOME SELECT FILL JUST TO BUILD OUT AND TAKE SOME OF THAT OUT.
BUT UM, YOU KNOW, THE NUMBER THAT YOU SEE IN THERE, IT, IT INCORPORATES OR ALLOWS FOR THE ALLOWANCES FOR THAT.
THEY WERE JUST TRIPPING MY EAR WHEN YOU'RE TALKING ABOUT, IS THIS SOMEBODY ZONE MULTIFAMILY? IT IS.
IT'S PART OF A PLAN DEVELOPMENT INDUSTRY.
YOU GUYS WENT THROUGH THAT PROCESS YOURSELVES, RIGHT? WE DID, YEAH.
AND UH, FOR ANY THAT ARE INTERESTED, IT TOOK 15 MONTHS.
SO JUST TO GIVE YOU AN IDEA OF WHAT'S GOING ON WITH THOSE RIGHT NOW.
BUT YES, WE DID, WE GOT THAT APPROVED BACK IN JUNE OF THIS YEAR.
AS FAR AS THAT STREAM RELOCATION AND DISTURBANCE, IT'S LIKE YOU'RE NOT VERING IT IN THERE.
AND SO THAT, THAT STREAM IS DEFINED, AND WE'LL PUT MY FAKE CIVIL ENGINEERING AD ON HERE FOR A SECOND.
A STREAM IS DEFINED AS WATERS IN THE US SO GENERALLY SPEAKING, FOR STREAMS THAT ARE PART OF THE WATERS OF US, DELINE WATERS OF UNITED STATES DELINEATION, UH, ANY DISTURBANCE OF THAT WATER FEATURE REQUIRES A PERMIT WITH THE UNITED STATES ARMY COORDINATION HERE WE ARE NOT DISTURBED YET.
WE HAVE NO PLANS TO DISTURB IT.
UM, WE'LL GET CLOSE TO IT, BUT WE WON'T BE DISTURBING IT FOR THE REASON OF, THAT'S WHAT I WAS GETTING AT IS WELL, YOU HAD TO GET UP NO, NO, NO SPECIAL PERMITS FOR THAT.
FOR ALL THOSE REASONS THAT I JUST MENTIONED, IT TAKES AT LEAST THAT LONG MORE, IT'S, IT'S ONLY NO RISK OF ACCESS FROM THE TENANT.
I WAS JUST GONNA SAY ONE ABOUT NO.
SO THE PART OF THE FENCE, UH, PART OF THE FENCING THAT WILL COME, THEY'LL BE FENCING ON EACH SIDE, NORTH AND SOUTH SIDE OF THAT CREEK AREA, UH, TO PREVENT PEOPLE FROM WANDERING FROM THERE.
OBVIOUSLY IT'S A FENCE, OBVIOUSLY.
IF SOMEBODY WANTED TO HOP OVER OR CLIMB UNDERNEATH IT AND GET INTO THE CREEK, THEY'RE GONNA DO THAT.
BUT, YOU KNOW, WE'RE GONNA TAKE THE MEASURES THAT WE NEED TO, TO AT LEAST DETER PEOPLE FROM.
ANY OTHER QUESTIONS? ALRIGHT, THANK YOU JAKE.
UM, DO I HEAR A MOTION? AND A SECOND? I'LL MOVE TO GO.
AND WHO'S GONNA DO THE SECOND? SECOND? DIRECTOR MOORE.
[01:05:01]
MY DIRECTOR.HOW DO HEAR YOU THERE? DIRECTOR HINTON APPROVE.
VICE PRESIDENT GARCIA PROOF DIRECTOR.
DO YOU THINK WE CAN COMBINE, UH, NINE AND 10 OR SHOULD WE, I GUESS WE COULD DO THEM SEPARATE.
DIRECT ITEM NINE SOLUTION TO TERMINATE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CORPORATION AND OPPORTUNITY HOUSING GROUP, INC.
RELATING TO 5 55 ROSS, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT, LOCATED AT 1777 NORTH RECORD STREET, CITY OF DALLAS, DALLAS COUNTY, TEXAS 7 5 0 2 0.
AND, UM, GENERAL MANAGER, QUINTO.
ANY COMMENTS? SORRY, I WAS JUST, UH, COMMUNICATING WITH SOME BOARD MEMBERS HERE.
UM, JUST ONE DEAD OR THEY GONNA COME BACK.
IS OSU ANYTHING IN THE PIPELINE WITH US OR THEY JUST, WE OWN ONE PROPERTY, RIGHT? THAT'S IT.
I MOVED TO, I MOVED TO APPROVE, TO TERMINATE OU.
SO AN AFFIRMATIVE VOTE IS TO TERMINATE.
WHO IS SECONDING DIRECTOR? I'LL, OKAY.
VICE PRESIDENT GARCIA APPROVE.
AND WE HAVE ANOTHER ACTION ITEM NUMBER 10, RESOLUTION TO TERMINATE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CORPORATION AND JEFFERSON AT THE CENTRAL LLC RELATING TO JEFFERSON AND NOVA, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 27 81 NORTH CARROLL AVENUE, CITY OF DALLAS, DALLAS COUNTY, TEXAS 7 5 2 0 4.
SO I SPOKE WITH THE DEVELOPER YESTERDAY.
I MEAN, IT REALLY COMES DOWN TO THE POLITICAL LEANINGS OF A COUPLE PEOPLE.
UM, AND THE WILLINGNESS TO GUESS FIGHT AGAINST THE PRIVATE RESTRICTION.
UM, SO STILL TRYING TO COMMUNICATE WITH 'EM ABOUT THE BACKGROUND, BUT FOR NOW, THIS IS, THIS IS ON HOLD.
SO THEY SAID THEY COULDN'T OVERCOME THE PRIVATE RESTRICTION.
IT'S NOT, UM, JUST A THOUGHT ON THESE MOUS.
I MEAN, OUR APPLICATIONS ARE CONTINGENT ON CONTROL.
WELL, IT DOESN'T APPLY TO J-P-I-T-D-I, THEY DON'T DEAL.
BUT MAYBE THE LAST ONE, IF WHEN THEY APPLY, THEY HAVE TO HAVE CONTROL OF THE DEAL, WHETHER IT BE A SIGNED PURCHASE AGREEMENT OR THEY OWN THE DEAL.
THE WAY OF PUTTING THESE MOUS, IT AUTOMATICALLY TERMINATES, IT FALLS OUTTA CONTRACT.
OR THEY DON'T HAVE CONTROL ANYMORE.
'CAUSE WE'VE KIND OF HAD THIS ISSUE WHERE MOUS ARE HANGING OUT THERE AND THE SPONSOR LOSES CONTROL OF THE DEAL, BUT THEY KIND USE THAT TO JOCKEY FOR THE DEAL, YOU KNOW, TO OUTBID OTHER COMPETITORS.
I MEAN, IT'S, IT'S KIND OF A ODD THING SOMETIMES.
USER FLOATING DOWN USED TO TAKE CERTAINLY IN THE FUTURE.
I MEAN, WHAT, WHAT WE DO, WE PUT A, UH, AN OUTSIDE DATE ON IT.
UM, AND WE, AS YOU'RE EXERCISING NOW, THE FLEXIBILITY FOR THE BOARD TO MAKE A UNILATERAL DECISION TO TERMINATE IT.
SO YOU HAVE BROAD TERMINATION RIGHTS.
IF YOU WANT TO ADD A, AN ADDITIONAL ONE FOR CAN WE, IF WE'VE GOT AN OUTSIDE DATE, I GUESS THAT, I JUST THINK IT OUT LOUD, RIGHT? SORRY, POINT.
YEAH, YOU CAN TERMINATE AS, AS YOU KNOW.
I'LL TO APPROVE THE TERMINATION OF THE U HAVE, UH, ONE QUESTION FOR YOU, UM, BRIAN, SO CAN, THIS IS A GENERAL QUESTION ABOUT, I GUESS LICENSE DEAL.
UH, PRIVATE DEED RESTRICTIONS BE USED TO RESTRICT AFFORDABLE HOUSING AND STATE OF TAXES FIRM.
I MEAN, I THINK THERE WOULD BE FAIR HOUSING ISSUES.
UM, I THINK YOU WOULD PROBABLY RUN INTO, AGAIN,
[01:10:01]
THIS IS THEORIZING BOTH CONSTITUTIONAL ISSUES PERHAPS.UM, YOU KNOW, I, UM, I THINK TO MORE FAIR HOUSING YEAH.
TO, TO SAY THAT THIS SIMPLY CAN'T BE USED ON INCOME RESTRICTED PROPERTY.
I THINK YOU RUN INTO SOME CHALLENGES THERE.
UH, WELL, I THINK THE NUANCE HERE, AND GRANTED I'M NOT A LAWYER, IS THAT THAT WAS A SPECIFIC PROPORTION OF INCOME RESTRICTED, NOT AN OUTRIGHT RESTRICTION ON RESTRICTED.
AND EVEN, SO DID IT SAY AFFORDABLE HOUSING? DID IT RESTRICTIONS, SAY AFFORDABLE HOUSING? WHAT DID IT? 20% AND 80%.
WELL, IT REFERRED TO IT AS 2080.
I MEAN, IT WAS KIND OF FLOWER.
VERY, AND IT'S LIKE WHOEVER WROTE THIS UNCLEAR, IT WAS UNCLEAR, RIGHT? IT WAS, UM, YOU KNOW, IT IT, IT IT WOULD'VE PERMITTED A TAX CREDIT, UH, FOR INSTANCE.
BUT, BUT THIS IS WHY, I MEAN, THIS HAS BECOME A STICKING FORWARD.
I YEAH, THOSE OBVIOUSLY ARE UNENFORCEABLE.
BUT, BUT THERE HAVE BEEN MAJOR COURT CASES ON LOT SITES, LIKE SOME COMMUNITIES HAVE SAID, OH, NO LOWER THAN TWO ACRE LOT SIZES OR SOMETHING.
AND THOSE, THE PERSON THAT PUT THE SHEET RESTRICTION IN THERE IS THE CURRENT OWNER.
WELL, HE'S THE MASTER DEVELOPER, RIGHT? WELL, I MEAN, NOT CURRENT.
YOU KNOW WHAT I'M SAYING? YES.
SO, I MEAN, HE'S DECLARING PROBABLY THINK IS I HE'S DECLARING TO THE, HAS A LOT OF RIGHTS.
AND THEN ALSO JPI IS FOCUSED THAT BOUGHT THE LAND.
THAT WAS THE TRANSACTION, RIGHT? PARTIES, YES.
BUT NOW THERE'S A THIRD OWNER.
WELL ISN'T THAT OTHER APARTMENT DEVELOPER
STREET LIGHTS HAS THE OTHER, YEAH.
STREET LIGHTS HOMES ANOTHER PARCEL NEXT TO THEM.
BUT ISN'T IT PART OF THE, OF THE DEED RESTRICTED? THEY ARE ALSO SUBJECT TO YEAH, THEY'RE BUILDING A TOWER.
THEY'RE SPENDING $700,000 A UNIT.
WE HAD A MOTION BY VICE PRESIDENT GARCIA.
DO I HAVE A SECOND? SECOND? WHAT'S THAT? DIRECTOR ROBINSON.
DIRECTOR MARSHALL C APPROVE TREASURER PHARAOH APPROVE DIRECTOR COMMY, DIRECTOR HINTON APPROVE.
VICE PRESIDENT GARCIA APPROVE.
SO ALL OF OUR ACTION ITEMS, AND NOW TIME IS GETTING LATE, SO I'M TRYING TO FIGURE OUT HOW TO SUMMARIZE THIS.
UM, I FELT I ASKED FOR THIS TO BE PUT ON THE AGENDA BECAUSE I FELT THAT, UM, THAT A LOT OF OUR DIRECTORS NEEDED TO BE BROUGHT UP.
SPEED ON, ON WHAT HAS HAPPENED IN REGARD TO THE HOUSING AND HOMELESSNESS SOLUTIONS COMMITTEE.
THE HOUSING AND HOMELESSNESS SOLUTIONS COMMITTEE IS A COMMITTEE OF THE CITY COUNCIL OF DALLAS THAT, UH, OVERSEES, UH, ANYTHING HAVING TO DO WITH HOUSING OR HOMELESSNESS ISSUES,
UM, AND, UH, AND WE WERE INFORMED, UM, I DON'T KNOW, ERIN, JUST IF I GET THE TIMELINE RIGHT, I THINK AROUND THE MIDDLE OF OCTOBER, THAT THE COMMITTEE HAD DECIDED TO HAVE A, WHAT THEY CALL A SPECIAL CALLED MEETING.
AND THAT THE FOCUS OF THAT SPECIAL CALLED MEETING WAS SIMPLY TO LOOK AT THE, UM, PUBLIC FACILITIES CORPORATION AND THE, UM, AND, AND OUR, AND OUR HOUSING CORPORATION.
UM, AND SO WE WERE TOLD THAT WE NEEDED TO PUT TOGETHER A PRESENTATION FOR THAT MEETING.
WE WEREN'T REALLY GIVEN ANY DETAILS ABOUT, WE HAD NOT SEEN THE AGENDA.
WE REALLY WERE NOT GIVEN ANY DETAILS ABOUT WHAT TO EXPECT AT THAT MEETING.
BUT WE SCRAMBLED AROUND TO TRY TO PUT TOGETHER A REALLY GOOD PRESENTATION.
AND I WILL, UM, COMMEND OUR GENERAL MANAGER, ERIN QUINTO, BECAUSE LIKE, HE JUST LIKE GOT IT PULLED TOGETHER REALLY FAST.
[01:15:01]
UM, AND SO IN YOUR PACKET, YOU HAVE THAT PRESENTATION, WHICH I THINK IS, UM, IS EXCELLENT.UM, IT'S, UH, I'VE GOT ALL THESE PAPERS HERE, BUT, UM, OKAY.
AND WE CALLED IT DALLAS HOUSING FINANCE CORPORATION UPDATE ACCOMPLISHMENTS AND FUTURE POTENTIAL.
AND, UM, AND I THINK, UM, HOPEFULLY YOU'VE ALL HAD A CHANCE TO LEAF THROUGH THAT SINCE YOU GOT IT.
BUT IF YOU HAVEN'T, I, I SUGGEST YOU DO SO BECAUSE I THINK IT, UM, IT'S A VERY, VERY FEEL GOOD, UM, UH, PRESENTATION SOUNDS ON THE PORTAL.
UH, OR IF ANY OF YOU, YOU KNOW, WANNA AS A PRINTOUT OR WHATEVER, JUST LET US KNOW.
BUT, UM, AND YOU KNOW, SOME OF THE, JUST TO GIVE YOU THE HIGH POINTS, WHICH I ALSO OH, SO, SO, UM, WE WERE TOLD WE HAD 15 MINUTES TO GIVE THIS PRESENTATION.
AND SO, UM, SO WE PUT THIS TOGETHER THINKING THAT THAT WAS KIND OF WHAT WE NEEDED TO RESPOND TO.
BUT THEN IN THE POSTING, UH, UM, FOR THE, UM, THE PUBLIC, THE PUBLIC POSTING UNDER TOMA, UM, THERE WERE ALL THESE THINGS THAT WE FOUND OUT ABOUT, WHICH, UM, VICE PRESIDENT GARCIA WAS, WAS MONITORING AND MADE US ALL AWARE AS QUICKLY AS HE COULD OF WHAT HAD BEEN POSTED.
I, LOOKING HERE, I HAD THE AGENDA.
ANYWAY, WE, WE FOUND OUT THE FULL AGENDA, WHICH HAD A LOT OF THINGS THAT IT WOULD'VE BEEN HELPFUL, WHAT I SHOULD SAY NOW.
OH, HERE IT IS, WOULD'VE BEEN HELPFUL TO KNOW ABOUT.
BUT JUST TO, TO RUN THROUGH IT.
UM, THEY HAD A PRE, THEY, THE HOUSING DEPARTMENT, THE CITY OF DALLAS HOUSING DEPARTMENT HAD A PRESENTATION THAT THEY GAVE THAT ASKED A LOT OF QUESTIONS, LIKE, YOU KNOW, SHOULD THIS BE CHANGED AND SHOULD THAT BE CHANGED? AND, UM, AND WE HAD HAD NO FOREWARNING OF THAT.
SO IT, IT WOULD'VE BEEN, UH, HELPFUL FOR US IF WE, IN OUR PRESENTATION THAT THAT GOT POSTED, IF WE COULD HAVE RESPONDED TO SOME OF THOSE QUESTIONS, BUT WE DIDN'T HAVE THAT OPPORTUNITY.
UM, AND SO, UH, THAT WAS THE FIRST ITEM ON THE AGENDA.
THE NEXT ITEM, THE ITEM ON THE AGENDA WAS GREAT BECAUSE I WAS VERY GRATEFUL FOR THE HOUSING COMMITTEE TO FIND OUT ABOUT THIS FABULOUS, UM, PROGRAM THAT WE ALSO HAD A PRESENTATION ON BY, UM, AND THAT'S THE MORTGAGE BOND PROGRAM WHERE, WHERE WE CAN TAKE THESE LITERALLY MILLIONS OF DOLLARS AND HAVE THE T-D-H-B-A DISTRIBUTE THEM OUT TO CITIZENS OF THE CITY OF DALLAS TO PURCHASE SINGLE FAMILY HOMES.
SO, UM, SO THAT, UH, I WAS SO PLEASED THAT IN ADDITION TO US KNOWING ABOUT THIS PROGRAM, NOW THIS COMMITTEE ALSO KNOWS ABOUT THE PROGRAMS. THAT WAS GREAT.
THEN THERE WAS A PRESENTATION, UM, ALSO BY A MEMBER OF THE T-D-H-C-A.
IT WAS JUST KIND OF AN OVERVIEW OF THE 4% Y CHECK PROGRAM.
UH, AGAIN, WE'RE PRETTY ALL VERY FAMILIAR WITH THE 4% LITE PROGRAM, BUT, UM, BUT THE PERSON WHO GAVE THE PRESENTATION, UH, DID A REALLY AMAZING JOB OF, IN A SHORT PERIOD OF TIME, REALLY SUMMARIZING HOW THAT PROGRAM WORKS.
THEN, UH, WE GAVE OUR PRESENTATION AND, UH, AND I, I GAVE THAT.
AND THEN, UM, UH, DARA PURNELL, WHO'S OUTSIDE COUNSEL FOR THE CITY OF DALLAS, FOR EXAMPLE, ON OUR DEALS THAT HAVE CDBG OR HOME FUNDING, DARA REPRESENTS THE CITY OF DALLAS, UH, GENERALLY ON THOSE DEALS.
UM, AND, UM,
SO HER PRESENTATION, SHE REALLY KINDA, UM, JUST SPOKE OUTSIDE OF WHAT SHE HAD DRAFTED FOR HER PRESENTATION.
UM, AND I THINK THE, UM, THE GOAL OF HER PRESENTATION WAS SUPPOSED TO BE, UH, TO TALK ABOUT GOVERNANCE AND HOW THE CITY OF DALLAS NEEDS TO MAKE SURE THAT IT'S, YOU KNOW, SEPARATE CORPORATIONS SUCH AS OURS HAVE PROPER GOVERNANCE.
I THINK THAT WAS KIND OF THE, UH, GOAL OF HER PRESENTATION.
UM, THEN, UH, I DON'T, I DON'T THINK WE GOT TO ONE.
OKAY, SO THE LAST TWO PRESENTATIONS, THEY RAN OUT OF TIME, BUT THERE WAS SUPPOSED TO BE ONE BY THE ATTOR OUTSIDE COUNSEL FOR THE PFC TO DESCRIBE, YOU KNOW, THEY HAD MAJOR, UM, UH, AMENDMENTS TO THEIR STATUTE THE LAST TIME THE LEGISLATURE MET.
AND SO HE WAS GONNA DESCRIBE WHAT THOSE CHANGES WERE AND HOW IT HAS IMPACTED THE DEALS THAT THE PFC CAN DO.
AND THEN, UH, THE FINAL ITEM WAS BYLAWS REVIEW.
UM, SO THIS, THE CITY ATTORNEY'S OFFICE PUT TOGETHER A VERY LARGE PRESENTATION ON THE PFC AND HFC BYLAWS.
[01:20:01]
WE DIDN'T HAVE ANY, UH,SO IN MY PRESENTATION, I TRIED VERY HARD TO RESPOND TO, UM, SOME OF THESE THINGS THAT WE DIDN'T KNOW WERE GONNA COME UP.
AND, UM, I'M JUST GONNA READ THROUGH FOR YOU VERY QUICKLY, BUT YOU ALSO HAVE THIS, WHAT THE QUESTIONS WERE THERE WERE THE HOUSING DEPARTMENT PUT TOGETHER FOUR, UH, CATEGORIES OF QUESTIONS THAT, THAT, UH, THAT THE HOUSING DEPARTMENT FELT THAT THE HOUSING COMMITTEE, THE CITY COUNCIL HOUSING COMMITTEE SHOULD LOOK AT.
SO THE FIRST WAS T AND THE QUESTIONS ASKED WERE, HOW SHOULD EXISTING DHFC, I'LL LEAVE OUT D-D-P-F-C, BUT EVERYTHING APPLIED TO BOTH HOW SHOULD EXISTING REVENUES BE USED AND HOW SHOULD FUTURE REVENUE BE USED? UM, SO, UH, IN MY PRESENTATION, MY ANSWER TO THAT WAS THAT, UH, OBVIOUSLY WE CONSIDER THESE FUNDS, UH, TO BE FUNDS THAT CAN BE USED TO PURSUE OUR MISSION.
AND, UM, AND, AND WE WOULD WANT TO WORK HAND IN HAND WITH THE CITY OF DALLAS TO DECIDE ON HOW THOSE FUNDS SHOULD BE USED.
SO, UM, SO HOPEFULLY, UM, I, I THINK, UH, I THINK I, I GUESS WHAT I WOULD HOPE IS THAT THERE WOULD, THIS WOULD BE A VERY COLLABORATIVE PROCESS THAT THE HOUSING DEPARTMENT OR THE HOUSING COMMITTEE, UM, COULD LET US KNOW SOME SUGGESTED USES OF THOSE REVENUES.
AND THEN, YOU KNOW, THIS BOARD COULD VOTE, OBVIOUSLY THOSE REVENUES RIGHT NOW RESIDE IN THE DHFC, AND SO WE COULD HAVE A VOTE ABOUT, UM, ABOUT THOSE SUGGESTED USES OF OUR REVENUES.
UM, ONE THING THAT I THINK EVERYONE IS WELL AWARE OF IS THAT THERE'S THIS HUGE NEED FOR GAP FINANCING ON OUR, UH, DEALS NOW.
AND, UH, THAT WOULD BE A GREAT WAY TO USE THOSE REVENUES.
AND ALSO, I FEEL LIKE IT'D BE GREAT FOR THOSE TO BE RENEWABLE.
YOU KNOW, WE WERE TALKING ABOUT TCAP AND, AND, YOU KNOW, WHY COULDN'T WE DO THE SAME, THAT IF WE'VE GOT SOME REVENUES, THEY COULD COME BACK TO US AND BE LOANED BACK OUT? SO TO ME, THAT WOULD BE WONDERFUL, AND I'M KIND OF HOPING THAT THE HOUSING DEPARTMENT WILL AGREE.
UH, THE NEXT CATEGORY WAS LOCATION.
DOES THE CURRENT POLICY CONCENTRATE POVERTY OR OTHERWISE IMPEDE THE CITY'S OBLIGATION TO AFFIRMATIVELY FURTHER HOUSING? SHOULD PROJECTS BE LIMITED TO HIGH OPPORTUNITY AREAS? SHOULD THE TOTAL NUMBER OF ANNUAL PROJECTS BE LIMITED? SHOULD WE CONSIDER PROXIMITY GUIDELINES SIMILAR TO LITECH PROJECTS? AND THAT WOULD OF COURSE BE FOR NON LITECH PROJECTS, AND SHOULD WE PROHIBIT TAX EXEMPT PROJECTS IN TIP DISTRICTS? UM, SO, UM, AGAIN, UM, UH, I GUESS WHAT I WOULD SAY ON THIS, AND THIS IS A DISCUSSION ITEM, SO WE'RE ALL GONNA GET TO CHIME IN.
WHAT I WOULD SAY ON THIS IS THAT, UM, THAT IT, UM, AGAIN, SHOULD BE COL WELL, NO, SORRY.
WHAT I WOULD SAY ON THIS IS, IF THE CITY OF DALLAS DECIDES TO HAVE A HOUSING POLICY IN THIS REGARD, THEN OBVIOUSLY WE'RE GONNA, UM, DO WHATEVER WE NEED TO DO TO FURTHER THAT POLICY.
SO I REALLY DON'T KNOW THAT THESE ARE ITEMS THAT WE CAN, UH, ANSWER.
YOU KNOW, I THINK THAT'S A, UH, THE CITY NEEDS TO MAKE THOSE DECISIONS.
NEXT ITEM IS THE CATEGORY OF CONTROL.
SHOULD THE BOARDS BE STAFFED BY HOUSING AND COMMUNITY DEVELOPMENT STAFF RATHER THAN HIRING, UH, DHFC STAFF? RIGHT NOW, AS YOU KNOW, WE USED TO ONLY HAVE STAFF THAT WAS HIRED BY THE CITY OF DALLAS, ONLY JUST RECENTLY, I GUESS ERIN, HAS IT BEEN THREE MONTHS, MAYBE THREE MONTHS NOW? UM, THAT, UH, THAT OUR GENERAL MANAGER HAS BEEN DIRECTLY EMPLOYED, PROBABLY THREE.
UM, AND THEN, UH, JACKIE AND, UM, AND, UH, POSSIBLY, UM, ARE ARE EMPLOYED BY THE CITY.
SO, UM, AND THEN SHOULD CITY OFFICIALS BE ADDED AS EX CO BOARD MEMBERS, SIMILAR TO THE DALLAS ECONOMIC DEVELOPMENT CORPORATION BOARD, UM, AND WHAT IS THE ROLE OF, UM, THE CITY ATTORNEY'S OFFICE VERSUS OUTSIDE COUNSEL? UM, AND THEN I'LL, I'LL SPEAK TO THOSE SOON.
[01:25:01]
AND THEN THE LAST CATEGORY WAS APPROVAL PROCESS.SHOULD THE CITY STAFF REVIEW TO ENSURE THAT THE DHFC PROJECTS ADVANCE THE CITY'S POLICY GOALS.
AND THAT CURRENTLY THE D CURRENTLY THE DHFC DETERMINES THE INCENTIVE TERMS. SHOULD THE CITY STAFF WEIGH IN ON THE TERM SHEET, SHOULD CITY APPROVAL COME AFTER ALL BOARD APPROVALS? AND THEN, UH, THEN THERE WAS ONE THAT ONLY APPLIED TO THE, UH, DPFC.
WHAT I WANNA POINT OUT HERE IS THAT, UM, IS THAT A LOT OF THESE ISSUES CAME UP THE LAST TIME WE REVISED OUR BYLAWS, WHICH WAS IN 2018.
AND, UH, AND, AND I POINTED OUT IN MY PRESENTATION THAT, UM, THAT SOME OF THE THINGS WE DID IN 2018 WERE TO MAKE THE DHFC SUBJECT TO TOMA UNDER THE STATUTE.
UH, THE DHFC DOES NOT NEED TO BE SUBJECT TO TOMA, BUT WE DID THAT IN OUR BYLAWS.
UM, WE SAID THAT EACH COUNCIL MEMBER WOULD APPOINT ONE BOARD MEMBER THAT THE TERMS OF THE BOARD MEMBERS WOULD BE TWO YEARS TO MATCH THE TERMS OF THE CITY COUNCIL MEMBER.
UM, WE REQUIRED THAT IF THE DHFC DID HIRE ITS OWN STAFF, THERE WOULD BE A LIAISON FROM THE HOUSING DEPARTMENT WHO WOULD ATTEND ALL MEETINGS.
UM, WE PUT IN THE, UM, CITY ORDINANCE, UH, TERM LIMITS FOR BOARD MEMBERS.
WE PUT IN THAT, UM, THAT A BOARD MEMBER COULD BE REMOVED BY A VOTE OF THE MAJORITY OF THE MEMBERS OF THE CITY COUNCIL.
WE PROVIDED FOR REIMBURSEMENT OF EXPENSES FOR CITY STAFF SERVICES.
WE ADDED A CONFLICT OF INTEREST PROVISION FOR OUR BOARD.
WE MADE THE BOARD SUBJECT TO CHAPTER 12 A OF THE CITY CODE.
UM, SO I THINK SOME OF THE THINGS THAT, UM, THAT AT LEAST WERE RAISED IN THE CITY ATTORNEY'S OFFICE PRESENTATION, WE'VE KIND OF ALREADY TAKEN CARE OF.
UM, SO I'LL OPEN UP TO DISCUSSION, BUT, UM, BUT WHAT WE, UH, I GUESS THE OFFICERS ARE RECOMMENDING THAT WE SUBMIT, OH, I LEFT OUT ONE OF THE REALLY IMPORTANT THINGS.
THERE WAS, UM, THERE, WHAT WAS SUBMITTED AT THIS MEETING WAS THAT THE COMMITTEE OUGHT TO VOTE ON A RED, YELLOW, OR GREEN LIGHT.
SO, UM, THE RED LIGHT WOULD BE THAT NO, NOTHING, NO, THERE IT IS UP THERE THAT BASICALLY NO APPLICATIONS.
THERE WOULD BE A HALT TO APPLICATIONS.
THE RED LIGHT WOULD BE A HALT TO APPLICATIONS.
THE YELLOW LIGHT WOULD BE THAT WE WOULD HALT NEW APPLICATIONS, BUT CONTINUE WITH EXISTING, AND THE GREEN LIGHT WOULD BE DISCONTINUE AS IS.
SO, UH, THE VOTE THAT DAY, UM, WAS TO GREEN LEAVE THE GREEN LIGHT.
BUT, UM, I DON'T KNOW IF POSSIBLY THERE HAVE BEEN CHANGES SINCE THEN.
BUT MORE IMPORTANTLY, I'M GONNA TALK ABOUT THE TIMELINE.
THE TIMELINE WAS FOR THE HOUSING DEPARTMENT TO SUBMIT CHANGES TO OUR BYLAWS TO THE COMMITTEE BY THE END OF THIS MONTH.
AND WE KNOW WE ALSO HAVE THANKSGIVING IN THERE, SO THAT MAKES IT REALLY PRETTY CRAZY.
UM, AND THEN THE HOUSING DEPARTMENT WOULD DRAFT PROPOSALS, THE HOUSING DEPARTMENT AND THE CITY ATTORNEY'S OFFICE WOULD DRAFT PROPOSALS OF CHANGES AND BRIEF THEM TO US IN DECEMBER AT OUR, I GUESS DECEMBER MEETING.
AND THEN COUNCIL, THEN THEY WOULD BREACH BRIEF THE HOUSING AND HOMELESSNESS COMMITTEE IN JANUARY ON JANUARY 25TH AND BRING IT TO CITY COUNCIL ON FEBRUARY 25TH.
SO THAT'S A VERY COMPACTED TIMELINE.
UM, SO THE OFFICERS, UM, ARE RECOMMENDING THAT WE SUBMIT OUR OWN DRAFT OF ANY CHANGES WE THINK OUGHT TO BE MADE TO, TO OUR BYLAWS, UM, PRIOR TO THIS NOVEMBER DEADLINE.
AND SO WE'VE BEEN WORKING ON THOSE.
UM, BUT ANOTHER THING I WANNA POINT OUT, MY FINAL THING IS I WANNA READ WHAT'S IN OUR, UH, CERTIFICATE OF FORMATION, WHICH USED TO BE CALLED ARTICLES.
HERE'S WHAT IT SAYS ABOUT CHANGES TO THE BYLAWS.
IT'S SAYING ONE WAY THAT CHANGES
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CAN BE MADE IS IF THE, OUR BOARD OF DIRECTORS REQUEST THEM.AND THEN, UH, AND WE SEEK TO AMEND THE, IN THE STATUTE, IN THE STATE STATUTE, IT SAYS YOU CANNOT AMEND THE CERTIFICATE OF FORMATION, WHICH THEY CALL THE ARTICLES, UH, WITHOUT A, A MAJORITY VOTE OF THE CITY COUNCIL.
NOT THIS COMMITTEE, BUT THE FULL CITY COUNCIL.
UM, AND SO IF WE BRING SOMETHING, UM, THEN IT GOES TO THE CITY COUNCIL AND THEY CAN APPROVE IT AND IT WILL BE AMENDED.
UM, OR THEN THE FORMATION OR THE BYLAW.
THAT'S THE, OKAY, WELL, SO HERE'S WHAT OUR BYLAWS, OUR BYLAWS, UM, TRACK IT.
THEY TRACK IT IN REGARD TO WHERE WE BRING SOMETHING TO THEM.
IF WE BRING SOMETHING TO THE COUNCIL, THEN THE ARTICLES AND THE, AND OUR BYLAWS, UM, THAT IF, WAIT, I'M GETTING CONFUSED.
THE BYLAWS, THE BYLAWS CAN BE AMENDED.
IT'S THE SAME METHOD AS, AS FOR THE ARTICLES IF WE BRING IT TO THEM.
BUT IF THEY BRING IT TO US, THIS IS WHAT I WANNA REDO THE GOVERNING BODY OF THE UNIT, THAT WOULD BE THE COUNCIL IN ITS SOLE DISCRETION.
AND AT ANY TIME MAY PROPOSE ANY CHANGE TO THE STRUCTURE, ORGANIZATION, PROGRAMS, OR ACTIVITIES OF THE CORPORATION THAT IT DEEMS WISE, EXPEDIENT, NECESSARY OR ADVISABLE.
AND THEN IT SAYS, UM, THEY WOULD BRING IT TO US AND THEN, UH, AND THAT, THAT WOULD BE BROUGHT TO US BY A MAJORITY VOTE OF THE HOUSING COMMITTEE.
SO IT SAYS THAT THE APPROPRIATE UNIT COMMITTEE, SO IF A MAJORITY OF THE HOUSING COMMITTEE WANTS TO BRING US CHANGES, THEN THEY, THEN THEY COME, THAT WOULD COME BEFORE US.
AND IF APPROVED BY THE BOARD OF DIRECTORS, IT WOULD BE ADOPTED BY A MAJORITY VOTE OF THE GOVERNING BODY OF THE UNIT.
SO I GUESS THE WAY IT WOULD GO IS THAT IT WOULD BE, THE HOUSING COMMITTEE MAKES A RECOMMENDATION, IT COMES TO US, AND IF WE APPROVE IT, THEN IT GOES TO THE FULL CITY COUNCIL.
BUT IF WE FAIL TO ADOPT THE AMENDMENT, THE GOVERNING BODY OF THE UNIT WILL HOLD A PUBLIC HEARING AT, AT THE APPROPRIATE UNIT COMMITTEES, THAT WOULD BE THE HOUSING COMMITTEE TO ALLOW THE BOARD OF DIRECTORS TO PROVIDE COMMENTS TO THE AMENDMENT.
THE UNIT COMMITTEE SHALL DETERMINE IN ITS SOLE DISCRETION TO EITHER PROPOSE AN ALTERNATIVE AMENDMENT FOR CONSIDERATION BY THE BOARD OR TO RECOMMEND APPROVAL TO THE CITY COUNCIL TO MAKE THE AMENDMENT.
SO, UM, I GUESS WHAT I'M WANTING TO POINT OUT IS THAT THIS TIMELINE I DON'T THINK TAKES INTO ACCOUNT WHAT'S IN OUR BYLAW, BECAUSE BASICALLY THIS TIMELINE JUST TALKS ABOUT BRIEFING US IN DECEMBER.
IT DOESN'T SAY ANYTHING ABOUT THAT WHOLE, UH, METHOD THAT'S IN OUR FILE.
I'LL OPEN IT UP FOR DISCUSSION.
SECRETARY PIT, UM, IT SOUNDS LIKE HAVING LOOKED AT THIS AND, AND LOOKED AT CHAPTER 3, 9 4, AND THE CONVENTIONAL STANDARD WAY FOR WOULD BE FOR, IF, IF THERE WAS A DESIRE TO MAKE CHANGES TO THE BYLAWS OR JUST INFORMATION WOULD NEED TO COME TO THE BOARD AND THE HOUSING FINANCE CORPORATION, THIS BOARD IS ALL PRIZED OF APPOINTS FROM CITY COUNCIL AND THEN TO GO THROUGH THAT ROUTES.
BUT INSTEAD, LOOKS LIKE IT'S KIND OF BEEN SILOED, UM, WITH STAFF IN THE CITY ATTORNEY'S OFFICE.
AND DO YOU HAVE A CENSUS TO, UH, IS, IS THAT CORRECT? IF SO, ARE THEY, IS THE IDEA NOW THAT THEY'RE PROPOSING CHANGES TO OUR BYLAWS AND THEN WE'RE GONNA WORK SEPARATELY? OR IS THERE A WAY WORK TOGETHER? WHAT, WHAT'S THE, DO YOU HAVE A SENSE IS JUDGE, I HAVEN'T BEEN CONTACTED BY THE HOUSING DEPARTMENT.
I GUESS I'LL LOOK TO JACKIE AND VAY AND ERIN TO ANSWER THAT QUESTION.
I HAVE NOT BEEN CONTACTED, NOT BY LOSS SPECIFICALLY.
SO, UM, IN MY UNDERSTANDING NOW IS THAT BASED UPON HAVING SEEN THIS MEMO FROM THE CITY ATTORNEY'S OFFICE, WHICH HAS, I THINK I GOT ABOUT 20 RECOMMENDATIONS THAT WE'RE, WE'RE GONNA RESPOND TO THAT.
AND IT, AS I LOOKED AT IT, AND I JUST PULLED UP THE PRESENTATION, WAS MY CONCERN IS, I SAID, RECOMMENDATIONS FOR APPROVED GOVERNANCE.
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I LOOKED AT A LOT OF RECOMMENDATIONS, THERE WERE THINGS THAT WERE ACTUALLY ALREADY INCLUDED IN OUR CERTIFICATE FORMATION AND OR OUR BYLAWS.SO WOULD THE IDEA BE TO MAYBE SUGGESTION MY PART, BRIAN, THAT YOU'RE LOOKING AT THIS TO, UH, PROPOSE CHANGE YOU LOOKING AT THAT BASED UPON OUR WORKING KNOWLEDGES, UH, WHAT, WHAT CHANGES THAT WE THINK YOU MADE, BUT THEN ALSO IN A LETTER OF TRANSMITTAL, POINT OUT THAT ANY THE OTHER THINGS LIKE THE COMA AND THE CHAPTER 12, A ETHICS REQUIREMENTS, THE CHAPTER EIGHT, THINGS ABOUT BOARD COMMITTEE APPOINTING ARE ALREADY A PART OF OUR DOCUMENTS.
AND THE FACT THAT WE, WE DID THAT, AS YOU POINTED OUT BACK IN 2018, 2019, IT'S, MY CONCERN IS THAT IT'S FRAMING THAT, THAT, OH, THERE'S ALL THESE THINGS THAT NEED TO BE DONE.
LIKE IF THERE'S A RECOMMENDATION THAT CHAPTER 12 A SHOULD APPLY TO BOARD, WHICH IS IN THE MEMO, THEN SOMEBODY LOOK AT IT AND THINK, OH, WELL IT MUST NOT APPLY CURRENTLY.
BUT IN FACT IT DOES APPLY CURRENTLY.
SO I THINK IT SEEMS LIKE IT'D BE IMPORTANT FOR US TO CONVEY, CONVEY THAT TO THE, THE COUNCIL COMMITTEE AND FOR US TO EVENTUALLY, YOU KNOW, COMMUNICATE THAT TO THE, THE INDIVIDUAL COUNCIL MEMBERS OR THE MAYOR WHO APPOINTED US.
AND TO THE EXTENT, YOU KNOW, THE PRESENTING TO THIS COMMITTEE, THOSE CHANGES, WELL ALL THOSE PEOPLE ON THE COMMITTEE, PLUS THE OTHER MEMBERS OF COUNCIL HAVE ALL APPOINTED PEOPLE TO THIS VIDEO ACTUALLY WORKING WITH US ON A DAYDAY BASIS.
IT MIGHT BE PRODUCTIVE TO TRY TO WORK, WORK COLLABORATIVELY.
MY MY THOUGHTS, I JUST THOUGHT, I WATCHED THE VIDEO AND I THINK MARCY DID A SPECTACULAR JOB IN A VERY SHORT AMOUNT OF TIME REPRESENTING HER HFC.
AND I THINK IT CAME OFF AMAZING.
I MEAN, JUST HER REPRESENTATION FOR OUR BOARD JUST REPRESENTED A VERY ENGAGED, VERY SOPHISTICATED GROUP THAT HAS A REAL STRONG SENSE OF MISSION.
AND I THINK, YOU KNOW, THE SUBCOMMITTEE OF STATE COUNCIL, BUT I THINK I COULD KIND OF TELL THEY WERE GETTING WHAT WAS BEFORE MARCY TO SPEAK.
SO I THINK THAT REGISTERED, SO I, WELL DONE MARCY.
I THINK IN TERMS OF THE GOVERNANCE, LOOK, I, SAME WITH TONY.
I'M SEEING A LOT OF STUFF THAT'S DEALT WITH SUPERFLUOUS.
IT'S LIKE, LOOK, IT'S ALREADY IN THERE.
THERE ARE SOME SUGGESTIONS ABOUT ACTUALLY PUTTING RULES OF VIDEO CONFERENCING IN OUR BYLAWS, WHICH JUST SOUNDED LIKE AN ODD REQUEST.
IT'S LIKE, LOOK, LET'S JUST GO WITH TOMA AND OUR INTERPRETATION.
NOW, I DUNNO WHAT ELSE IS GONNA BE SUGGESTED OR IF THAT'S IT, BUT I MEAN, THE ONE THING THAT'S JUST GOTTA BE UNDERSTOOD, IT IS STATE LAW, FULL GOVERNANCE OF DHFC IS WITH THE BOARD OF DIRECTORS AND THAT IS THE FIRST COMMANDMENT.
SO ANYTHING THAT'S PRESENTED BY HOUSING CITY ATTORNEY COUNCIL IS BE UNDERSTOOD.
NOW, IF THEY WANNA MAKE THEMSELVES THE STATE COUNCIL, THE BOARD, THEN MORE THAN WELCOME TO DO IT.
THEY WANNA MAKE CITY STAFFERS THE BOARD, THEY'RE MORE THAN WELCOME TO DO.
BUT I DON'T THINK ANYONE WANTS THAT.
SO JUST, THAT'S JUST GOTTA BE IN TOPS MIND, UH, EVERYBODY AS WE'RE KIND OF DOING THIS.
THE ONE OTHER THING I JUST WANNA MENTION, THERE'S THIS ONE OF MORE PASSIONATE ADVOCATES OF HOUSING.
IT'S LIKE, WELL, ISN'T HFC THE 60% GROUP ISN'T THE PSC THE MIDDLE INCOME GROUP? AND I THINK THAT'S, WE GOTTA HAVE A PROBABLY MORE THOROUGH DISCUSSION.
I KNOW WHAT FORMAT IS GOOD WITH CITY COUNCIL.
'CAUSE I DON'T THINK THAT WAS IT.
THAT MEETING ABOUT, LOOK, WHAT CAN THE HFC DO TO BETTER HOW AFFORDABLE HOUSING IN THE CITY, WHAT CAN THE PFC DO? IT'S A LITTLE BIT MORE COMPLEX THAN WHO'S THE LOW INCOME GROUP? WHO'S THE, THE, THE WORKFORCE? NO, THAT GROUP.
SO I THINK THAT WAS THE ONE THING I KIND OF FELT LIKE WAS LIKE, GOOD, GOOD.
GOT DEEPER DISCUSSION ABOUT THAT.
SO, SO I WOULD JUST SAY I DON'T KNOW WHAT THE DIFFERENCE BETWEEN OUR ARTICLES AND THE PFCS ARE.
SO, AND THEY'RE ALMOST IDENTICAL.
THERE'S A LOT OF THINGS I FELT SORT OF DIRECTED ONE PROBABLY THAN THE OTHER.
AND FOR THE SAKE OF Y'ALL'S TIME, I WOULD SAY INSTEAD OF PROACTIVELY RECOMMENDING CERTAIN CHANGES THAT UNLESS YOU BELIEVE THAT WE REALLY NEED TO MAKE THEM, I WOULD JUST SAY WAIT UNTIL THEY PRESENT US WITH SOMETHING.
WE GO UP OR DOWN AND THEN GO TO HOUSING AND HOMELESSNESS COMMITTEE PRESENT AT THAT POINT.
UH, 'CAUSE I DON'T KNOW HOW MUCH IT'S NECESSARILY GOING TO BE DIRECTED TOWARDS HOUSING.
LIKE MOST OF THE CHANGES WERE IN
ONE THING THAT I BROUGHT UP, UM, AT THE HEARING WAS, UM, OUR MEETING WAS THAT, UM, THAT WE HAVE JUST COME BACK FROM TPA, WHICH IS THE ORGANIZATION THAT REPRESENTS ALL OF THE HFCS THROUGHOUT TEXAS.
AND THE TOPIC OF CONVERSATION AT TPA WAS THAT THERE WOULD BE LEGISLATION PROPOSED BID SESSION TO CHANGE THE HFC STATUTE.
AND UM, SO I KIND OF SUGGESTED THAT MAYBE WE SHOULD WAIT UNTIL AFTER THAT.
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WAS NOT RECEPTIVE TO THAT SUGGESTION.THEY WANNA GO WITH THIS TIMELINE, SO, OH, YOU'RE GOOD.
UM, A QUESTION, AND, YOU KNOW, THEY KIND OF HIGHLIGHTED THIS BRINGS INTO FOCUS, BUT THE RELATIONSHIP BETWEEN THE HFC AND THE DALLAS STATE ATTORNEY'S OFFICE, UM, OF THINGS, YOU KNOW, ONE, MY UNDERSTANDING THAT THINK THAT'S ESSENTIALLY THE ATTORNEY'S OFFICE REPRESENTS MULTIPLE CLIENTS LIKE A LAW FIRM.
THEY'VE GOT THE DALLAS CITY COUNCIL, THEY'VE GOT THE DFW AIRPORT BOARD, THEY HAVE H-F-C-P-F-C, AND IF MY UNDERSTANDING IS AN ATTORNEY TO CLIENT RELATIONSHIP, AND IF THAT'S THE CASE, THEN WE SHOULD BE WORKING WITH THE CITY ATTORNEYS, OBVIOUSLY SHOULD BE BRIEFING US ON THINGS AND, AND PROVIDING ADVICE TO US, WHICH APPEARS IN OUR BYLAWS TO BE THE CASE, WHAT WHAT THEY'RE SUPPOSED TO BE DOING.
BUT SOUNDS LIKE THERE'S A PERCEPTION BY SOME THAT THE CITY ATTORNEY'S OFFICE, UH, SHOULD BE DIRECTING CERTAIN ACTIVITIES OF THE HFC AND TO THE EXTENT THAT'S PERCEPTION, THAT WOULD SEEM TO BE IN CONFLICT WITH CHAPTER 3 94 AND JUST, UH, CORPORATE LAW GENERALLY WHERE GOVERNANCE OF A, A CORPORATION THAT'S VESTED IN, IN ITS BOARD AND, AND THAT BOARD DOESN'T HAVE THE ABILITY TO OUTSOURCE, UH, KIND OF WASH ITS HANDS OF, OF ITS DUTIES BY, YOU KNOW, UH, GIVING AWAY THOSE POWERS TO OTHER OTHER PARTIES THAT AREN'T, AREN'T REALLY ACCOUNTABLE.
AND I DON'T KNOW IF YOU HAVE ANY THOUGHTS ABOUT THAT.
ANYBODY ON ZOOM HAVE ANY QUESTIONS OR COMMENTS? THIS IS A DISCUSSION.
UM, DOES ANYONE ELSE THINK THAT THIS IS GOING TO LEAD TO SOME SORT OF, I DON'T KNOW, IT FEELS LIKE OVERSIGHT OVER WHAT WE DO BECAUSE THE FACT THAT THEY PROPOSE THINGS THAT ARE ALREADY IN OUR BYLAWS, I'M JUST KIND OF QUESTIONING WHAT THIS WHOLE EXERCISE IS TRULY ABOUT.
YOU KNOW, I THINK I
THERE'S BEEN A LOT OF QUESTIONS ABOUT, YOU KNOW, SINCE IT'S A FAIRLY NEW PROGRAM IN THE STATE AND IN THE CITY, UM, SOME OF THE COUNCIL MEMBERS WERE QUESTIONING, YOU KNOW, ARE THESE PROJECTS, WHO ARE THE DEVELOPERS? WHAT, HOW ARE THEY BEING OVERSEE? I MEAN, THE AGENCY'S BEEN IN EXISTENCE SINCE LIKE 1984, SO JUST IN GENERAL, THEY'RE MUCH MORE COMFORTABLE WITH OUR PROJECTS.
AND, YOU KNOW, OUR PROJECTS ARE A LITTLE MORE, THE LITE PROGRAM IS A, IS A FEDERAL PROGRAM, SO IT'S MUCH MORE REGULATED IN GENERAL NOW, THE PFC IS, IS JUST A STATE ONLY AUTHORIZATION.
SO THERE'S, THERE'S A LITTLE MORE, I GUESS, GRAY AREA AROUND GOVERNANCE OF PFCS AND, AND HOW THOSE ARE, UH, MADE TO BE COMPLIANT WITH STATE LAW AND WHO OVERSEES THAT.
AND I THINK SINCE WE HAVE A SIMILAR PURPOSE, WE JUST KIND OF GOT LUMPED INTO THAT BECAUSE H-F-C-P-F-C, THEY'RE KIND OF, THEY'RE SISTER ORGANIZATIONS, RIGHT? WE HAVE A VERY SIMILAR PURPOSE TO PROVIDE AFFORDABLE HOUSING.
BUT, UM, AND, AND IT'S A VERY COMPLICATED SORT OF THING.
LIKE NOT EVERYONE KNOWS HOW TAX CREDITS ARE, ARE DOLED OUT OF WHAT BONDS ARE OR HOW TO FINANCE OUR PROJECTS OR, OR WHAT THE REGULATIONS ARE AND WHAT THE PORTABILITY RESTRICTIONS ARE.
SO I THINK IT'S AN OPPORTUNITY FOR COUNCIL TO KIND OF REFRESH THEMSELVES ON, ON HOW OUR, OUR BUSINESS RUNS, RIGHT? UM, THERE WERE, THERE WERE QUESTIONS IN TERMS OF GOVERNANCE GOING BACK SEVERAL YEARS, I THINK, UM, TO THE PREVIOUS HOUSING DIRECTOR.
BUT I THINK WE'VE WORKED THAT OUT CLOSELY WITH, WITH STAFFING AND, AND WHATNOT.
UM, YOU KNOW, THERE'S, THERE'S KIND OF THIS PUSH AND PULL WHERE CITY STAFF HAS A RESPONSIBILITY TO THE CITY MANAGER, RIGHT? AND THEY HAVE THEIR GOALS SET TO PROVIDE INFORMATION TO COUNCIL, BUT YOUR CORPORATION OPERATES KIND OF AS A SEPARATE BUSINESS.
AND SO WHOEVER'S STAFFING THE CORPORATION, IF YOU'RE A CITY EMPLOYEE AND A CORPORATION, WELL IT, IT'S HARD BECAUSE THEN YOU HAVE MULTIPLE BOSSES.
SO I THINK WE'VE KIND OF RECTIFIED THAT IN A WAY.
BUT AGAIN, I THINK THERE'S PROBABLY JUST A LITTLE BIT OF GROWING PAINS AS TO, YOU KNOW, WHO ACTUALLY CONTROLS THE CORPORATION.
BUT I THINK IT'S Y'ALL'S VIEW THAT COUNCIL DIRECTLY CONTROLS IT BECAUSE YOU ARE COUNCIL'S DIRECT
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THE SAME TEAM BY, I DON'T THINK ANYONE'S IN TROUBLE, YOU KNOW, WHICH IS KIND OF THE, THE FEELING THAT WE SOMETIMES GET AS A CORPORATION.LIKE, WELL, WHY ARE THEY CRITICIZING US SO MUCH? LIKE, WHAT HAVE WE DONE WRONG? I DON'T THINK WE'VE REALLY DONE ANYTHING WRONG.
IT'S JUST, YOU KNOW, WHAT'S BEST, WHAT'S OUR BEST PRACTICE GOING FORWARD? I THINK WHEN WE COME TO AN AGREEMENT, EVERYONE SEEMS TO BE ABLE TO OPERATE IN A LOT MORE LY THAT DIRECTION.
DOES ANYONE HAVE ANY QUESTIONS ON THOSE? UH, SPECIFICALLY ABOUT, IN REGARDS TO THE PIPELINE? I KNOW WE'VE GOT THE LOTTERY COMING UP TOMORROW.
UM, I'D LIKE TO MAKE SURE THAT WE HAVE A, I GUESS, A MORE THOROUGH DISCUSSION OF EVERYTHING THAT'S COMING UP AT OUR DECEMBER MEETING THAT NO ACTION NEEDED JUST TO, SO TO KEEP EVERYONE'S EYES ON.
NO, I'LL TRY TO SEND AN EMAIL AND I'LL, I'LL TELL HELP TON AFTER THIS AND WE'LL GET AND SAY, YOU KNOW, WHAT'S OUR LIKELY TIMELINE FOR EVERYTHING THAT WE'VE PUT INTO THE WATER SO WE CAN KIND OF KEEP THAT FRESH IN OUR MINDS.
UM, IF NOTHING ELSE, I'LL ADJOURN THE MEETING.