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UM,[*This meeting was joined in progress*]
SO HEARING NO[Dallas Housing Finance Corporation on January 14, 2025.]
COMMENTS, I'LL MOVE ON TO AGENDA ITEM NUMBER FOUR, APPROVAL OF THE MINUTES FOR THE DECEMBER 10TH, 2024, CITY OF DALLAS HOUSING FINANCE CORPORATION MEETING.AND I WILL ASK IF ANYBODY HAD ANY, UM, AMENDMENTS OR ADDITIONS TO THE MINUTES OR CORRECTION TO THE MINUTES.
I OFTEN HAVE THAT, BUT I DIDN'T HAVE ANY
I WILL ASK FOR A MOTION TO APPROVE.
AND DO I HAVE A SECOND? TREASURER FARROW.
ANY OPPOSED? ANY OPPOSED? ANY ABSTENTIONS? OKAY.
UM, MOVING ON TO ITEM NUMBER FIVE.
THIS IS AN ACTION ITEM, THE RESOLUTION FOR THE RIGID LOOP 12, A MULTIFAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT 1100 NORTH WALTON WALKER BOULEVARD, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 1 1.
AND I'LL TURN IT OVER TO OUR GENERAL MANAGER.
YOU PRESENT HEALTH VAN? SO THIS IS A FINAL APPROVAL FOR THE RIDGE AT BOOTH 12, PARTICIP CLOSE IN MARCH.
UM, THINK IS HERE IF YOU GUYS HAVE ANY ADDITIONAL QUESTIONS, BUT WE'VE NOW SEEN THIS PROBABLY THREE TIMES.
UM, BUT FEEL FREE TO, TO ASK AWAY, IS THERE ANYTHING CHANGED FOR THE, THE DEAL TERMS SINCE THE LAST TIME WE SAW THAT? PRETTY MUCH EVERYTHING WE SAW, WHEN DID THEY EXPECT YOU CLOSER? UM, FIRST OF FIVE EVERYTHING'S BEEN PRICED.
UM, AND, UH, THIS ONE, THERE IS NO BOND ISSUANCE, JUST TO REMIND EVERYONE BECAUSE THEY'RE GETTING THE BOND FUNDING FROM THE T-D-H-C-A DIRECTLY.
UH, SO, UH, WE, UH, WE'LL BE FUNCTIONING AS THE GENERAL CONTRACTOR, UH, AND AS THE BROWN LESSOR AND AS THE GENERAL PARTNER OF THE LEASEHOLD, UH, ENTITY.
UH, SO, OKAY, I'LL GO DOWN THE LIST.
OH, WAIT, WAIT, WE, WE DON'T HAVE A MOTION IN A SECOND.
AND YOU HAVE SECONDS? I'LL SECOND.
UM, AND THIS IS A MOTION TO APPROVE, I ASSUME.
UM, VICE PRESIDENT GARCIA APPROVE.
UM, I'LL MOVE ON TO ACTION ITEM NUMBER SIX.
THIS IS A RESOLUTION FOR 10 AND LOSS MULTI-FAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT 36 0 2 SAMUEL BOULEVARD, DALLAS, DALLAS COUNTY, TEXAS, 7 5 2 2 3.
UH, A CONSIDER AN ADOPTIVE FINANCING RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION, MULTI-FAMILY HOUSING REVENUE BONDS.
FANNIE MAE MVS SECURED 10 AND LOSS SERIES 2025 A AND THE MULTI-FAMILY HOUSING REVENUE BOND 10 AND LAW SERIES 2025 B.
WITH THE PROCEEDS OF SUCH BONDS, THE FINANCING TO BE LOANED TO TX TENON 2023 LIMITED THE BORROWER TO FINANCE A PORTION OF THE COST OF THE CONSTRUCTION OF TENNYSON LOSS.
AND CONTAINING OTHER PROVISIONS RELATING TO SUCH DEVELOPMENT, INCLUDING ONE, A RESOLUTION APPROVING THE GROUND LEASE BETWEEN THE BORROWER AND DHFC, TENISON LOSS LANDOWNER, LLC, THE GROUND LESSOR AND APPROVING A LOAN FROM THE CITY OF DALLAS TO THE GROUND LESSOR
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AND ASSIGNMENT OF SUCH LOAN TO THE BORROWER AND RESOLUTIONS AUTHORIZING THE, AUTHORIZING THE ADMISSION OF VHFC, TENON LOSS, GP, LLC, THE GENERAL PARTNER TO THE BORROWER AND FINANCING FOR THE DEVELOPMENT TO INCLUDE EQUITY FINANCING BY RAYMOND JAMES TAX CREDIT FUND, 20 LLCA CONSTRUCTION LOAN FROM BANK OF THE OZARKS BANK, OCK, AND A SUBORDINATE LOAN FROM THE CITY OF DALLAS.AND A SUBORDINATE LOAN ASSIGNED BY THE GRETA FROM LESSOR TO THE BORROWER.
THIS IS OUR FINAL APPROVAL FOR THIS PROJECT.
SO YOU GUYS ARE TALKING THROUGH, UM, EXPECT CLOSE DATE.
WELL, THIS ONE IS JUST TO AUTHORIZE THE, IT'S NOT FOR THE FINAL DOCUMENTS OR IT IS, IT IS.
IT'S THE FORM SUBSTANCE OF THE, ACTUALLY WE SET THE CLOSE IN SOMETIME LAST YEAR, BUT THEN THERE WAS A PROBLEM WITH THE CITY FUNDING.
WE SWITCHED BUCKETS OF FUNDING.
SO NOW THEY'RE READY CLOSE HERE.
THE CHANGE IN BUCKETS DIDN'T CHANGE THE, ANY OF THE AFFORDABILITY.
ALL IT JUST SOURCE THE, AND I GUESS IT WAS A LITTLE DIFFERENT BECAUSE THE, UH, THE LOAN IS GONNA COME TO THE DHFC FOR A MOMENT BEFORE IT GETS ASSIGNED.
IT, IT, IT IS GOING TO COME TO OUR GROUND LESSER IT.
SO THERE WAS A LITTLE DISCUSSION WITH THE, UM, CITY'S OUTSIDE COUNCIL ON WHO THAT INITIAL BORROWER WOULD BE.
UH, THE REQUEST WAS THAT IF NEEDED EHFC, WE GOT THEM COMFORTABLE, UH, THAT, UH, THE GROUND MU, UH, WOULD WORK.
AND THAT'S OUR PREFERRED APPROACH, UH, AS WELL.
SO, UM, THAT'S THE GROUND MU IS THE ENTITY THAT WE CREATED.
BUT THEN IT WILL GET ASSIGNED TO THE BAR, THE BORROWER.
SO IT'S ONLY LIKE A MOMENT IN TIME THAT IT COMES INTO THE, THE, UM, THE GRAHAM LIST.
BUT THE BORROWER IS TEXAS TENNIS IN 2023 LIMITED, CORRECT.
THAT IT'S JUST A LIKE AN EXTRA LAYER.
SO THE ISSUE WAS THAT CITY'S OUTSIDE CASTLE, SO YOU NEED TO HAVE AN NOT PROFIT SPEED ON THAT'S NOT SOLUTIONS.
IT'S DISREGARDED ENTITY OR NONPROFIT.
I KNEW THERE WAS LIKE A LITTLE
UM, SO I JUST WANTED TO LET EVERYONE KNOW THAT THAT'S THE ONLY THING I WOULD SAY OUT OF THE ORDINARY OF THE WAY THESE DOCUMENTS WERE DONE.
UM, SO I'LL RETAIN A MOTION IN A SECOND AND THEN SEE IF ANYBODY HAS ANY OTHER QUESTIONS.
I WANNA HAVE A MOTION TO APPROVE.
ARE THERE ANY QUESTIONS? SO THE WAY I'M READING, ARE THERE TWO SUBORDINATE LOANS BELOW THE OCK LOAN? SO THREE TRANCHES OF LOANS.
THERE ARE TWO CDBG LOANS FROM THE CITY.
ONE IS ONE GOES TO THE GROUND LENS FOR, THEY BOTH DO.
ONE IS, ONE IS REGULAR CDBG FUNDS, ONE IS CDBG DISASTER RECOVERY FUNDS.
HOW ARE THEY SUBORDINATES? ONE, THEY'RE ON A PARITY WITH EACH OTHER.
THEY'RE BELOW, THEY'RE BELOW US AND THEY'RE ABSOLUTELY, THEY'RE, THEY'RE BELOW REPAYMENT OF THE GROUNDLESS PAYMENTS.
SO IT IS TRUE SUBORDINATE DEBT.
UH, IT'S THE LAST THING THAT GETS PAID.
I DON'T KNOW ABOUT ANY SALE PROCEEDS.
I MEAN, WE WOULD BE PAID OUR GROUND LEASE ANY OCCURRED.
AN UNPAID GROUND LEASE GETS PAID ON A SALE.
UH, DO WE EVEN HAVE AN INTEREST IN SALE PROCEEDS OR ON THIS DEAL? UM, I THINK IT'S
I THINK WE HAVE ONE POINT A HALF PERCENT ON THIS DEAL.
BUT THAT REPAYMENT OF THE CITY MIGHT BE, I DON'T KNOW WHERE IT FALLS THERE.
BUT WE WOULD STILL BE ENTITLED TO OUR PROCEEDS AT SOME POINT, RIGHT.
ANYWAY, UM, ANY OTHER QUESTIONS? WE GET ONE AND HUNDRED PERCENT OF SALE PROCEEDS.
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OKAY, I'M GONNA DO THE VOTE.UH, DIRECTOR ALLEN APPROVE DIRECT, UH, I'M SORRY, TREASURER OF PHARAOH.
DIRECTOR MOORE APPROVE SECRETARY PAGE AND DIRECTOR ZA APPROVE.
WE'RE ON ACTION ITEM SEVEN, RESOLUTION FOR PARADISE OH NINE.
WHEN WAS THE CLO WHEN IS THE CLOSING ON THAT ONE? ON 10 AND LAW? FEBRUARY.
THAT'S THE NEXT ONE COMING UP.
ITEM SEVEN, RESOLUTION FOR PARADISE GARDENS.
A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 1500 NORTH GARRETT AVENUE, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 0 6 A.
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 DHSC, PARADISE, GAR, G-P-L-L-C, THE COMPANY APPROVING THE TRANSFER AND ASSIGNMENT OF THE COMPANY TO LEDG CAPITAL LLC, AND APPROVING THE FORM AND SUBSTANCE OF A TRANSFER AND ASSIGNMENT AGREEMENT.
I THINK THAT REALLY SHOULD SAY APPROVING THE TRANSFER AND ASSIGNMENT OF THE GENERAL PARTNERSHIP INTEREST IN THE COMPANY, ISN'T THAT RIGHT? IT IS TO LEDG CAPITAL FROM LEDG CAPITAL.
HOW SHOULD THAT BE WORDED? IT'S NOT CORRECT.
CREATING THE LIMITED LIABILITY COMPANY JUST TO TRA THERE'S NO PARTNERSHIP YEAH.
OH, SO, SO WE HAD TO FORM THE TRANSFER OF THE, SO WE HAD TO FORM WHAT, WHAT WOULD'VE BEEN THE GENERAL PARTNER IN ORDER FOR BRACEWELL TO MAKE THE 35 DAY FILING, UM, AND HAVE IT BE ACCURATE AS WE THOUGHT THE DEAL WAS GONNA BE STRUCTURED WHEN THEY HAD TO FILE IT.
SINCE THAT TIME, IT WAS DETERMINED THAT WE WOULD NOT PARTICIPATE IN THE PARTNERSHIP, BUT THAT ENTITY HAS TO BE THE GP, SO WE HAVE TO ASSIGN OWNERSHIP OF IT TO THE DEVELOPER SO IT CAN STAY IN THE G IN THE GP ROLE.
AND WE COULD CLOSE ON THE VOLUME CAP AS WAS FILED WITH THE BOND.
SO WE WILL NOT BE A PARTNER IN THAT DEAL WE'RE, IT'S THE BOND ISSUE, SO THERE'S NO TAX EXEMPTION.
SO APPROVING THE TRANSFERRING ASSIGNMENT OF THE COMPANY, ISN'T THAT THE RIGHT WORD TO LEDG CAPITAL? IT, IT, IT IS BECAUSE IT'S THE, IT'S THE LLC THAT WOULD'VE BEEN THE GP.
SO THAT, THAT COMPANY
AND B, CONSIDER AN ADOPTIVE FINANCING RESOLUTION AUTHORIZING THE ISSUANCE SALE AND DELIVERY OF THE CITY OF DALLAS HOUSING FINANCE CORPORATION, MULTIFAMILY HOUSING REVENUE BONDS.
FANNIE MAE MBS SECURED SOCIAL SERIES 2025 A PARADISE GARDENS AND SUBORDINATE MULTIFAMILY HOUSING REVENUE BONDS, PARADISE GARDENS SERIES 2025 B ONE AND TAXABLE SERIES 2025 B TWO WITH THE PROCEEDS OF SUCH BONDS, THE FINANCING TO BE LOANED TO LIH PARADISE GARDENS PRESERVATION LP, THAT'S THE LIMITED PARTNERSHIP.
THE BORROWER TO FINANCE A PORTION OF THE COST OF THE REHABILITATION OF PARADISE GARDENS.
A MULTIFAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 1500 NORTH GARRETT AVENUE.
THE DEVELOPMENT, SO BASICALLY THIS IS THE OPPOSITE OF THE, UM, BRIDGE AT LOOP 12 IN THAT, UM, WE'RE ISSUING THE BONDS, BUT WE'RE NOT A PARTNER AS OPPOSED TO BEING A PARTNER AND NOT ISSUING THE BOND.
SO THEN ARE WE JUST GONNA DISSOLVE THE HFC PART PARADISE CARBON'S G THAT WE HAVE TO ASSIGN IT TO? OH, SORRY.
UH, BUT THEN IT COULD BE DISSOLVED.
YEAH, IT COULD BE RENAMED, BUT OH, OKAY.
UM, IT HAS TO BE, BECAUSE THAT'S THE NAME THAT WAS FILED WITH THE BOND REVIEW BOARD AS THE GP.
'CAUSE WHEN THE DEADLINE HIT, IT WAS INTENDED THAT DHFC WOULD BE IN THE TYPICAL SPOT IS GP AND IT WORKS.
OH, SO WE'RE ASSIGNING OUR ENTITY THAT WE FORM.
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SO TO LEDG.IT'LL HAVE KIND OF THE DHFC NAMING CONVENTION, WHICH IS A BIT ODD, BUT AS OF THAT ASSIGNMENT, IT WILL NO LONGER BE OWNED BY THE HFC.
AND SO OVER THAT COURSE OF TIME, YOU KNOW, THEY, THEY SUBMITTED THE APPLICATION TO THE BOND REVIEW BOARD, BUT THEY GOT THAT AWARD UNDER THAT COMPANY NAME.
AND SO NOW WE'RE JUST CLOSING ON IT.
BUT SINCE WE HAVE NO MORE INTEREST IN THIS PROPERTY, WE JUST HAVE TO ASSIGN THAT THEN OR DONE.
SO IT'S AN INTER AN ISSUER FEE FOR THE LIFE OF, SO THEY DON'T NEED US FOR THE EXEMPTION, BUT THEY'RE GETTING AN EXEMPTION OR THEY'RE NOT GETTING, THEY DON'T NEED AN EXEMPTION.
IT'S VERY, THAT'S ALL THEY REALLY NEED IS THE NAME OF THE ENTITY.
THAT'S BECAUSE THAT'S WHAT YOU, THAT'S WHAT YOU WANT.
THEY STILL PROVIDING A YEAH, THEY'LL STILL HAVE A REGULATORY AGREEMENT.
AND WE HAVE NO LIABILITY, LIKE NO TAX EXEMPTION.
WE HAVE LIKE THREE PROPERTIES I THINK THAT WE PARTICIPATE.
SO THIS WILL MAKE THE BOARD, UH, IT'S NOT COMMON, BUT SOME PROJECTS DON'T BE IN PARTNERSHIP.
THOSE, BUT ALL THE OTHER LINE, I MEAN, WOULDN'T IT BENEFIT THEIR BOTTOM LINE? WELL, BUT THEY WOULD'VE TO PAY US A GROUND LEASE PAYMENT.
YEAH, BUT THE WOULD TAKE 25% OF THE DEVELOPER FEE TOO.
SO THIS ONE, THESE DEVELOPERS, SO THIS ONE, JUST TO GO FURTHER INTO THE, WE IS A VERY SMALL PROJECT.
IT'S ONLY LIKE A HUNDRED FEET MINUTES.
UM, THEY, THEY REALLY JUST NEEDED THOSE FUNDS.
THIS IS THE ONE THAT TONY AND I PUSHED FOR THEM TO REMOVE THE FENCE BETWEEN THE PARK AND THE CORRECT.
SO, UM, DOES SOMEONE WANNA MAKE A MOTION? SO LEMME JUST MAKE SURE THAT BLEW ME AWAY.
UH, I MEAN SO WHAT, WHAT IS THE, SO THE COST TO US, IF YOU WILL, THE CITY.
HOW WE GONNA LOOK AT IT? WHAT, OKAY, SO ALL WE'RE DOING IS HELPING THEM GET FINANCING.
THEY'RE GONNA GET TAX EXEMPT BOND FINANCING.
WHICH TAX CREDITS COME UP AS WELL AND TAX CREDITS.
WE HAVE THE INITIAL, SO WE'RE, WHICH IS GREAT 'CAUSE WE'LL GET AN ISSUE.
AND THE GOOD NEWS FOR THE CITY OF DALLAS ALSO IS THAT THEY WILL BE, HAVE A REGULATORY AGREEMENT.
THEY'LL BE PORTABLE FOR THE TWO, CAN SEE ANY TAXES.
SO WE'RE TAKING EXISTING STOCK, TAKING IT NICER, MAKING IT AFFORDABLE.
IT'S NOT NO COST TO THE ANY TAXING IT AT EASE.
WE, IT'S A VERY GOOD, LIKE IT'S RIGHT OFF OF ROSS.
THEY'RE JUST GOING CLASS A ALL THE WAY DOWN ROSS.
ALL RIGHT, SO LET'S TAKE A VOTE.
DID WE MOTION? OH, WE DIDN'T, I THOUGHT WE DID.
DO I HEAR A MOTION TO APPROVE? DIRECTOR ALLEN, ARE YOU GONNA MAKE THAT MOTION?
DIRECTOR ALLEN, HOW DO YOU VOTE? UM, TREASURER PHARAOH.
DIRECTOR ELLIS APPROVE AND I APPROVE DIRECTOR ROBINSON.
WE COME TO ACTION ITEM EIGHT, RESOLUTION FOR OAK AND ELM, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED 26 27 LINE OAK STREET, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 0 4.
THIS IS TO CONSIDER AND ADOPT A RESOLUTION APPROVING AN AMENDED AND RESTATED MOU.
WE HAD A PREVIOUS MOU WITH WATERFORD PROPERTY COMPANY LLC WITH A FINANCING ACQUISITION AND DEVELOPMENT OF OAK AND ALLEN AND APPROXIMATELY 424 UNIT MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 26 27 LIVE OAK STREET, THE DEVELOPMENT.
UM, SO WE ARE BRINGING THIS BACK FOR A REVISED SUMMARY.
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I BELIEVE FROM MAY, NOVEMBER.UM, THERE WAS COMPLICATIONS GETTING AN AGREEMENT AND, AND THEN PRICE PLUS, UH, SEAN FROM WATERPROOF HERE, IF YOU GUYS HAVE ANY QUESTIONS, WE BROUGHT BACK A REVISED STEEL SHEET, MUCH MORE FAVORABLE.
A, UH, A PRICING DISCOUNT FROM THE CURRENT SELLER, WHICH MAKES THE STEEL A LOT MORE PEACEFUL.
IT STILL INCLUDES A PAYMENT TO COVER ANY DOLLARS AS WELL AS THESE PAYMENTS THAT SOME OF YOU WERE, WERE CONCERNED ABOUT.
SO OVERALL, IT'S A MUCH BETTER DEAL WITH TRYING TO GET IT DONE.
AND SOCIAL SERVICES ARE COMPONENTS STILL IN THERE? SOCIAL SERVICES HAS BEEN INCREASED.
SO, AND I GUESS, UM, I DON'T KNOW IF SEAN'S GONNA COME UP, SEAN, IF YOU GOT A QUESTION, BUT, UM, JUST TO REMIND EVERYONE, THIS IS THE, PROBABLY THE ONLY REASON THAT WE'RE ABLE TO EVEN TRY TO GET THIS DONE IS BECAUSE THIS IS THE, UM, PROPERTY WHERE THERE WAS A CRANE COLLAPSE, COLLAPSE.
AND CONSEQUENTLY, UM, THE PROPERTY HAD TO KIND OF, UM, GEAR BACK UP TO FULL OCCUPANCY.
AND SO THAT'S PROBABLY THE ONLY THING THAT, THAT MAKES THIS SOMETHING THAT WE COULD PARTICIPATE IN, IN AN AREA OF TOWN THAT, UH, IS EXPENSIVE TO LIVE IN, IN GENERAL.
UM, I'LL BRIEF, BRIEF IN MY REMARKS, BUT FOR EVERYONE, UM, HERE, I'M SEAN ROSSON, CO-FOUNDER OF WATERFORD PROPERTY COMPANY.
WE HAVE A LITTLE ECHO, SO WE'RE FIXING IT THERE.
UM, I WON'T GIVE A FULL PRESENTATION ON, ON THE DEAL.
I THINK EVERYONE'S FAMILIAR WITH IT, BUT SEAN, I'M NOT SURE IF IT'S JUST ME, BUT I THINK WE LOST YOU ONLINE.
UH, I JUST GOT, WE WILL TRY THAT.
WELL THERE IS AN ECHO, BUT I CAN WAIT, TOUCH IT AGAIN.
IS THAT OKAY? I CAN HEAR YOU ONLINE.
CAN DAVID
UH, BUT, UH, SINCE WE ORIGINALLY GOT APPROVED, UH, WE'VE GONE BACK AND, AND RESTRUCTURED THE DEAL TO, TO AARON'S POINT, UH, TO HAVE A FULL REPAYMENT TO THE PIT DISTRICT AND TO THE TIFF DISTRICT.
UM, ONE OF THE THINGS THAT WE'RE SO EXCITED ABOUT ON THIS PROJECT IS THAT IT DOES FIT ALL THE GOALS FOR THE TIP DISTRICT.
UM, IF YOU READ THAT THEIR DOCUMENT IN TERMS OF POLICY GUIDELINES IS TO, IN ADDITION TO PROVIDE ECONOMIC DEVELOPMENT, UM, TO PROVIDE MIDDLE INCOME AND LOW RANKED HOUSING FOR EVERYONE ON THIS BOARD, UM, MAY NOT REMEMBER THIS PROJECT.
SO UNIQUE ABOUT IT IS THAT 20% OF THE UNITS WILL BE AFFORDABLE TO 16% A MI BELOW.
UM, IT'S A TOTAL OF 424 UNITS.
SO WHEN YOU THINK ABOUT THAT AND THE GRAVITY OF BRINGING THAT MANY UNITS TO, UH, THE DEEP EL NEIGHBORHOOD, WHICH DOWNTOWN, UH, YOU KNOW, THERE'S NOT A, A LOT OF NEW AFFORD HOUSING STOCK, WHICH WE'VE PROVIDED.
UM, WE'RE REALLY EXCITED ABOUT THAT.
IN ADDITION TO THAT, UM, IF YOU LOOK AT THE, THE DALLAS FORWARD NEW VISION DOCUMENT, A LOT OF THE GOALS IN THAT DOCUMENT, UH, ARE MET BY THIS PROJECT AS WELL.
UM, IN CLOSING, I JUST WANNA SAY THAT, UM, ANOTHER KEY ELEMENT TO THIS PROJECT, UM, THAT I'D BE REMISS IF I DIDN'T MENTION, IS THAT WHEN YOU LOOK AT AFFORDABLE HOUSING AND YOU LOOK AT PUBLIC BENEFIT, UM, ONE OF THE QUESTIONS THAT WE HAVE GOT
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IS, IS THAT IN ADDITION TO ACQUISITIONS, HOW COME THERE'S NOT MORE NEW DEVELOPMENT, UM, IN THE MIDDLE INCOME AND WORKFORCE HOUSING SPACE? I WILL TELL YOU THAT DEVELOPERS, UM, WE'RE CONSTANTLY LOOKING FOR ROUNDUP DEVELOPMENT OPPORTUNITIES, BUT WHAT'S SO UNIQUE ABOUT THE ECONOMIC CLIMATE THAT WE'RE IN RIGHT NOW IS THAT YOU'RE ABLE TO ACQUIRE BUILDINGS WELL BELOW PLACEMENT COSTS.WHAT I MEAN BY THAT SPECIFICALLY, UM, AND RAY STAR'S NOT HERE AT THIS MOMENT, BUT THEY, THEY, THEY ARE SUPPOSED TO BE HERE.
BUT THAT SAID, IF THEY WERE HERE, JR TOOL AND WHO RUNS THEIR, THEIR OFFICE HERE IN DALLAS, BUT HE WOULD TELL YOU IS THAT IF THEY WERE TO BUILD OAK EL TODAY, IT WOULD COST THEM OVER 325,000 A UNIT TO, TO BUILD THAT PROJECT.
WE ARE ACQUIRING IT FOR BELOW 190,000 UNIT.
WHAT I MEAN BY THAT IS THAT IN ADDITION TO ROUNDUP DEVELOPMENT, UH, IT DOES MAKE SENSE IN CERTAIN INSTANCES FOR ACQUISITIONS AT THIS MOMENT IN TIME, THAT IS THE REAL ESTATE CAPITAL MARKETS CHANGE.
MEANING IS INTEREST RATES STABILIZE, DEVELOPMENT COMES BACK, THERE WILL BE A MOMENT WHERE ACQUISITION PRICING DOESN'T MAKE SENSE AND WE'LL SEE MORE NEW DEVELOPMENT.
UM, I WANTED TO TOUCH ON THAT JUST BECAUSE THAT IT IS A QUESTION THAT I'VE GOTTEN.
UM, AND IT'S SOMETHING THAT I THINK IT, IT JUST, IT'S A FUNCTION OF WHERE WE ARE IN THE REAL ESTATE SECTOR.
I JUST WANTED TO SAY THANK YOU FOR YOUR TIME AND WE'RE EXCITED TO TRY AND GET THIS, THIS PROJECT DONE.
HAPPY TO ANSWER ANY QUESTIONS.
I GUESS I THINK I WOULD ADD ON TO WHAT YOU JUST SAID.
'CAUSE I THINK IT'S CRITICAL, UM, THAT IT WOULD COST 325,000 A UNIT TO BUILD AND THEN, THEN, UM, YOU WOULD BE, ONCE IT WAS CONSTRUCTED, THERE WOULD BE BASICALLY NO WAY TO MAKE ANY OF THOSE UNITS AFFORDABLE, RIGHT? I MEAN, CORRECT.
SO TO, TO BUILD A BRAND NEW MARKET RATE PROJECT TODAY, JUST TO MAKE IT PENCIL, UM, YOU WOULD, YOU'D BE BUILDING IT AT 325,000, UM, A UNIT.
UM, THEN TO YOUR POINT GERALD THING, YOU KNOW, IF, WHETHER IT'S AN HFC PROJECT OR NOT, OBVIOUSLY THAT, THAT WOULD CHANGE THE DYNAMICS ON WHETHER OR NOT SOME OF THE UNITS COULD BE OR NOT.
BUT JUST IN A VACUUM, IF YOU WILL, FROM MARKET PERSPECTIVE, YOU WOULD NEED TO CHARGE MARKET RENTS THAT ARE PROBABLY 10% HIGHER THAN WHERE THEY ARE TODAY TO BE ABLE TO JUSTIFY A $325,000 AND MORE EXPENSE.
YEAH, I THINK MORE, YEAH, ACTUALLY, YEAH, YOU'RE RIGHT.
UM, SO HOPEFULLY THE ANSWERS YEAH, JUST TO CLARIFY, YOU KNOW, OUR GOAL IS NOT TO TAKE AS MUCH STUFF OFF THE BACK AS POSSIBLE, BUT ALSO YOU LOOK AT THESE ON CASE BY CASE BASIS, BUT YOU LOOK AT THIS, IT SEEMS LIKE A SLAM DUNK.
THE PUBLIC BENEFIT LOOKS REALLY GOOD.
IT'S IN A GREAT LOCATION AND THE REPLACEMENT COSTS, IT'S UNATTAINABLE TO GET A RIGHT BY FORKLIFT PROJECT.
SO THIS IS KIND OF WITH THE TOOLS AVAILABLE TO US, THIS IS HOW WE CAN DO THAT.
UH, I KNOW THERE'S CRITICS ON BOTH SIDES, BUT WE WERE FORTUNATE ABOUT THE TOUR THIS WITH COUNCIL MEMBER RIDLEY, I THINK LAST WEEK SOMETIME.
WAS ACTUALLY QUITE EXCITED ABOUT THE PROSPECT.
SO, UM, AND I THINK, AND THERE'S A GROCERY STORE LITERALLY ACROSS THE STREET.
DO YOU HAVE CERTAIN PLANS FOR PARTICULAR PROGRAMS? OR IS THAT JUST SET ASIDE? YES.
UM, SO WE'RE, WE'RE BRINGING IN EQUALLY GRAFTED MANAGEMENT AS OUR SOCIAL SERVICE PROVIDER.
UM, SOME OF THE KEY, UM, SOCIAL SERVICE, UM, COMPONENTS THAT THEY'RE, THEY'RE GONNA BE, UH, WORKING WITH TENANTS ON IS, UH, FINANCIAL LITERACY, UM, HEALTH AND WELLNESS.
UM, ONE OF THE THINGS THAT WE'RE REALLY PULLING OUT INTO OUR PORTFOLIO OF COLLEGE, 60% AND UP TO 80% A OF I PROJECTS IS, UH, TELEHEALTH.
UM, BUT, UM, WHAT I, I SO TO, TO ANSWER YOUR QUESTION, UM, A BOARD MEMBER BOARD, UM, YES.
UH, CRAFTED MANAGEMENT, UM, UH, WILL BE AT THE PROPERTY ON SITE.
UM, AND WILL, WILL, THANK YOU.
WHAT ARE THE IMPEDIMENTS THAT YOU FORESEE WITH THIS DEAL? I MEAN, WE OBVIOUSLY REWORKED THE MOU, BUT DO YOU THINK WE'VE OVERCOME MOST OF THE HURDLES, OR, THAT'S A GOOD, GREAT QUESTION.
I'LL START BY SAYING THERE'S NO PROJECT IN TODAY'S ENVIRONMENT THAT'S EASY.
THAT'S, UH, I, I I THINK I'M PROUD OF OUR TEAM.
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KNOW, AND, AND THANKFUL FOR STAFF.YOU KNOW, THIS HAS BEEN A, A CHALLENGING PROJECT.
TO ANSWER YOUR QUESTION SPECIFICALLY, WE'VE NOW OVERCOME ALL OF THE PRIMARY, YOU KNOW, MAJOR S UH, SO THE REASON WHY GETTING AN APPROVAL TODAY IS SO IMPORTANT IS THAT WOULD ALLOW US TO RATE LOCK.
UM, AND THAT'S REALLY THE, THE MOST VOLATILE ASPECT OF THIS PROJECT RIGHT NOW.
IT'S JUST MAKING SURE THAT WE CAN RATE LOG ONCE WE'VE, UM, ONCE WE'VE TAKEN THE INTEREST RATE RISK OFF THE TABLE, DONE ALL OF THE DUE DILIGENCE, UM, AND THAT WE'RE READY TO CLOSE.
UM, THE TIMETABLE THAT WE'VE LAID OUT IS THAT THIS WOULD BE AN END OF FEBRUARY CLOSE, UM, AND GO TO A CITY COUNCIL NEXT MONTH.
UM, SO TO ANSWER YOUR QUESTION, IT'S JUST, YOU KNOW, AT THIS POINT, JUST GETTING THROUGH THE CLOSING PROCESS, DID WE MAKE THE AGENDA CITY COUNCIL? JEFF? YOU SO WE, WE'VE BEEN THROUGH THE COMMITTEE ALREADY.
YEAH, WE KNEW THAT GOT JUST REMOVED.
SO ALL THE STUFF IS THERE MATTER GETTING WE LINE UP FOR
THEY'VE GOT, I HAVE ONE MORE QUESTION ON THE TIP.
WAS THAT, UH, NEGOTIATED? HAVE YOU SPOKEN TO THE TIF BOARD AT ALL? SO WE'VE, WE'VE NEGOTIATED IT WITH CITY STAFF.
WE'VE AGREED TO THAT NUMBER, UM, REALLY PRIMARILY LIKE THE DORSEY, UM, CLARK, UM, AND TO ANSWER, BUT I HAVE NOT TALKED TO THE, THE TIF BOARD.
BUT, UM, WE'VE BEEN DEALING WITH CITY STAFF, UM, AND, AND RE TO THEIR, THEIR BUYOUT, WHICH WOULD BE FOR EVERYONE NOT KNOWLEDGEABLE, AND THAT WILL BE FRONT FUNDING THE TIP BUYOUT BACK CLOSE.
SO THAT'S, SO JUST A DISCOUNTED CASH FLOW OF WHAT THOSE PAYMENT BE.
CAN I, ARE WE DONE? UH, YEAH, A COUPLE QUESTIONS.
UM, THE, THE DIS YOU KNOW, THE, THE PRICING.
IS THERE A DISCOUNT ON THIS ASSET IN YOUR MIND BECAUSE OF THIS ACCIDENT THAT HAPPENED OR HAS THAT ALL BEEN CURED OR? SO, UH, SO WHAT I'S GREAT QUESTION.
SO CHAIR HEALTH MENTIONED IT AT THE TIME THAT THIS, THIS PROJECT WAS DELIVERED, MEANING THEY, THEY HAD TO REBUILD THE ENTIRE PROJECT, ACTUALLY GOT JR TOOL FROM GRAYSTAR IN THE AUDIENCE WHO'S LIVED WITH THIS PROJECT FOR FIVE YEARS.
UM, THEY THEN INHERITED 300 UNITS, UH, ACTUALLY, YEAH, 301 DAY, WHICH IS UNIQUE BECAUSE TYPICALLY YOU'LL PHASE A A, A LEASE OF AN ENDING PROJECT, UM, IN THIS INSTANCE, UM, IT'S THE PERFECT STORE WHERE THEY, THEY LEASED IT UP.
UM, IT'S A CLOSE ENDED FUND STRUCTURE, MEANING RAISE STAR PARTNER TO SELL THE ASSET.
UM, THEY WOULD LIKE TO SELL IT.
UM, SO THEY ANSWER YOUR QUESTION SPECIFICALLY, YOU FEEL LIKE WE'VE GOTTEN A, A VERY GOOD PRICE, UM, JUST BASED ON THE CONDITIONS OF THIS ASSET.
THAT'S WHY WE'RE, WE'RE ABLE TO BUY IT SO WELL BELOW BASIC ACCOUNT.
AND THEN THE, THE EXTENT OF YOUR REHAB DOLLARS, REHAB DOLLARS AND YOUR SOURCES AND USES.
WHAT IS THAT USED FOR? YEAH, I'M JUST CURIOUS.
WITH THE PROJECT THAT I GET, THIS IS FAIRLY NEW RIGHT NOW.
SO WE'RE, WE'RE A LONG-TERM OWNER.
UM, AND, AND SO OUR PARTNER IN THIS WILL BE RIA, WHICH IS THE SAME PARTNER THAT WE PARTNER WITH MAIN AND ACCESS.
UM, AND, AND I, I THINK I WANNA SAY THAT, YOU KNOW, THAT SHOULD HOPEFULLY BE A TESTAMENT TO THE COMMITMENT OF US IN THIS PROJECT MEETING.
WE WERE SHORT TERM HOLDER, THOSE REHAB DOLLARS WOULD BE MINI, WHEREAS, YOU KNOW, WE WANNA BE PARTNERS WITH YOU LONG TERM.
UM, AND SO KNOWING THAT, YOU KNOW, OVER TIME ASSETS LIKE THIS DO AGE, YOU HAVE HVAC ISSUES, YOU HAVE, DO YOU HAVE CAPITAL REQUIREMENTS THAT, THAT POP UP ROOFING ISSUES? UM, SO ARE YOU COUNTING THOSE IN REHAB, CORRECT.
SO MORE LIKE YOU COUNTERTOPS DO DISHWASHERS, WHATEVER.
SO NOW I THINK TO BRING IT UP, YEAH, SO GREAT.
SO NO, FOR US IT'S MORE PRIMARY, LIKE CAPITAL INFRASTRUCTURE US, THERE'S EXACTLY, THERE'S NOTHING IDENTIFIED IMMEDIATELY THAT YOU NEED, WE'RE SERVING IT FOR.
IT'S NOT DAY ONE GOING IN YEAH.
AND THEN, THEN I GUESS MY LAST QUESTION IS ON, YOU KNOW, BOARD FLIGHT'S TIRED OF HEARING ME ASK ABOUT IT, BUT ON THE THRESHOLD TEST, YOU KNOW, WE, WE BEAT THE THRESHOLD, WHICH I THINK WHAT YOU 65, 60 SOMETHING PERCENT, 60 OR YEAH, SOMEWHERE IN THERE.
SO WE'RE LESS 67, I THINK TWO THINGS.
[00:35:01]
PROVIDING, NOT VALUED IN THAT ANYWHERE, CORRECT? UM, I DON'T BELIEVE SO.I DON'T BELIEVE THAT I, AND AGAIN, I, I WANT TO DEFER TO HILLTOP THE PUBLIC.
THAT SHOULD BE, THAT SHOULD BE IN THERE, RIGHT? UM, I THINK IT PROBABLY IS IN THE COUNCIL.
IT'S IT, YES, THIS IS BRAXTON FROM HILLTOP.
WE, WE DO INCLUDE SOCIAL SERVICES AS THAT IS A, A BENEFIT TO THE PROPERTY THAT WOULD NOT, UH, BE REALIZED UNLESS THE INVOLVEMENT OF THE HFC WITH, WITH, YOU KNOW, WITH THE PARTNERSHIP.
SO THEN I GUESS ON TOP OF THAT, MAYBE AS A BRAXTON QUESTION IS, YOU KNOW, AGAIN, I THINK THESE, THESE NUMBERS IN THIS 15 YEAR CASH FLOW AREN'T DISCOUNTED BACK.
AND I GUESS I'M WONDERING WITH AN APPROPRIATE DISCOUNT RATE, DOES THIS, DOES THIS TEST LOOK BETTER? UM, AND I GUESS THIS GOES TO KINDA STUFF WE'VE TALKED ABOUT BEFORE, IS WHERE I STRUGGLE IS, YOU KNOW, TAKING SOMETHING OFF THE TAX ROLLS.
AND I, I LIKE THE PROJECT, I LIKE WHAT I'M HEARING OVERALL, BUT MY MIND WANTS TO SEE A HIGHER TEST LIMIT WHERE, YOU KNOW, THAT BENEFIT OUTWEIGHS THE, UH, THE PROPERTY TAX ABATEMENT WE'RE GIVING UP.
AND I FEEL LIKE IF WE DISCOUNTED, YOU KNOW, APPLIED A DISCOUNTING METHOD, IT WOULD CERTAINLY LOOK BETTER.
I, I DON'T KNOW IF YOU'VE LOOKED AT IT OR BRAXTON.
I, I, I HAVEN'T LOOKED AT IT THAT WAY.
AND I MEAN, TYPICALLY IT'S, IT'S DIFFICULT TO GET A, YOU KNOW, A ONE-TO-ONE RATIO FOR THAT PROPERTY TAX ABATEMENT TO THE, THE BENEFIT THAT YOU'RE RECEIVING.
JUST 'CAUSE THAT THAT WOULD REALLY MEAN IT, IT COULD ALSO STAY ON THE TAX ROLLS, UH, AND, AND BE MORE OF A MARKET RATE PROPERTY AT THAT POINT IS BECAUSE THERE WOULD BE NO BENEFIT TO THE PARTNERSHIP TO, TO THE DEVELOPER OR, OR TO, TO THE TENANTS OF THAT.
UH, I MEAN, WE ARE, WHAT WE ALSO, WHAT WE DON'T DO IS WE DON'T REALLY CALCULATE ANY BACKEND PARTICIPATION IN THE BENEFITS.
SO I MEAN, THAT'S SOMETHING THAT THE HSC WOULD RECEIVE AT A SALE OR REFI, BUT WE'RE NOT REALLY COUNTING THAT IN OUR BENEFIT CALCULATION JUST 'CAUSE IT'S, IT'S KIND OF UNKNOWN AT THIS POINT ON HOW REAL ESTATE WILL APPRECIATE OVER TIME.
SO THERE IS A, IF YOU WANNA GET TECHNICAL, THERE WOULD BE A HIGHER BENEFIT WHEN WE KIND OF CALCULATE IN A, A POTENTIAL BACKEND PARTICIPATION.
BUT WE DON'T REALLY LIKE TO DO THAT FOR, FOR OUR APPROVAL, UH, YOU KNOW, PURPOSES JUST 'CAUSE AGAIN, THAT IS A LITTLE MORE UNKNOWN AT THIS POINT.
SO THEORETICALLY, IF WE SELL A DEAL 10 YEARS DOWN THE ROAD FOR A HUNDRED MILLION, JUST TO MAKE THAT EASIER, IT'S A 1.5% FEE, THAT'S 1.5 MILLION, BUT THAT'S NOT BEING FACTORED IN TO ANALYSIS, IS THAT CORRECT? OH, CORRECT.
I MEAN, HONESTLY, BUT IT STILL WOULDN'T CHANGE IT.
IT'S FOUR AND HALF PERCENT DO THAT.
BUT DIRECTOR ROBINSON, DID WE, DID WE UNDERSTAND WHAT YOU MEANT ABOUT DISCOUNTING? I WASN'T SURE IF 15 YEARS WORTH OF APPLY TO THE CALCULATION.
'CAUSE YOU KNOW, THE WAY THAT THE NUMBERS COME OUT HERE, RIGHT? YOU'VE GOT THIS TAX RATE GROWING OVER TIME CONSIDERABLY WHERE, YOU KNOW, THE PROPERTY TAX IN YEAR 12, 13, YOU KNOW, YEAR 2.2, 2.3, 2.5 MILLION BEING 15 YEARS OUT, IF WE WERE APPLYING A DISCOUNT TO ALL THAT KIND OF APPROPRIATELY FOR TIME VALUE OF MONEY, YES.
IT FEELS LIKE IT WOULD CHANGE THIS.
EVERYTHING'S GROWING AT 3%, RIGHT? SO I MEAN, IF EVERYTH EVERYTHING'S GROWING THE SAME, I I THINK THAT'S WHAT THE MODEL ASSUMED AT 3% GROWTH.
I MEAN, SO THE RATIO WOULDN'T CHANGE THE ABSOLUTE NUMBERS YOU'RE RIGHT.
BUT THE, THE, THAT MAY NOT CHANGE THE RATIO.
WHAT RATE DO YOU USE TO DISCOUNT IT BACK
SO YEAH, KIND OF THINKING OUT THE MATH THERE.
SINCE WE DO A A, A FLAT 3% ESCALATOR ANNUALLY, I MEAN DOING A A A PRESENT VALUE DESK DISCOUNT WOULD CHANGE THE, THE NUMBERS INSIDE, BUT THEY WOULDN'T CHANGE A PERCENTAGE.
BUT IF THEY WERE TO GROW AT DIFFERENT RATES, I MEAN, IF YOU WANTED TO STRESS TEST AND SAY THAT IF THE TAXES GREW UP 5%, THEN YEAH, YOU COULD DO A DCF AND, AND DISCOUNT IT AT A DIFFERENT RATE AND SEE WHAT THE RATIO IS THAT WOULD MAKE, WOULD BE A WORTHY EXERCISE.
'CAUSE YOU DON'T KNOW, I MEAN, AND MAYBE THE TAXES DON'T GO UP, YOU KNOW, MAYOR JOHNSON GETS WAY WHERE THEY'RE GONNA KEEP DROPPING PROPERTY.
DIRECTOR ALICE? YEAH, THE ONLY THING I WOULD SAY IS I JUST WANNA CALL THEM AT ALL PARTIES FOR BREAK THIS, UH, UH, DEAL AHEAD.
I THINK REQUIRE A LOT OF, THERE'S A LOT OF STUMBLING BLOCKS RELATED TO THE TIFF.
I THINK PUTTING IN THE PILOT PAYMENT FOR THE PIN IS THE RIGHT THING TO DO.
RIGHT? UM, I REALLY DO, UH, JUST 'CAUSE WE CAN'T WIPE OFF TAX AGAIN, BUDGET BY 5%
I WANNA COMPLIMENT GR STAR FOR BENDING OVER A LITTLE BIT, UH, WHICH THEY PROBABLY DIDN'T WANNA DO.
BUT LOOK, I THINK WE APPRECIATE A RELATIONSHIP WITH GREAT STAR.
THEY HAVE A LOT OF PRODUCT, I THINK DOWN THE ROAD DEPENDING ON WHAT WE CAN DO DOWN THE FUTURE, UH, THAT WE BOUGHT BY, UH, IT'S A GREAT, YOU KNOW, GREAT COMPANY.
[00:40:01]
THEY HAVE GREAT PRODUCTS.SO ON A CALL WE MAKE GREAT STAR.
IF WE'RE WORKING WITH US, UH, TO MAKE THIS HAPPEN.
SAME THING FOR SEAN AND HIS TEAM.
UH, NO, I JUST THINK, LOOK, WE DON'T KNOW IF WE'RE GONNA BE ABLE TO DO THESE ACQUISITIONS COME JUNE.
AND IT IS VERY DIFFICULT TO GET THESE WORKFORCE DEALS IN THE PRICIER AREAS OF DALLAS.
THEY JUST DON'T, UH, IT'S THE GROUND UP.
DEVELOPERS DON'T COME TO US, THEY DON'T NEED IT.
'CAUSE THEY CAN CHARGE PRETTY HIGH RENTS, UH, IN THOSE REALLY PRICEY AREAS.
AND IF YOU CAN DO THAT, WHY YOU COME TO US, IF THAT'S THE CASE.
SO LOW CAP RATE, WE JUST CAN'T.
YEAH, I MEAN THAT'S JUST, YOU GUYS ARE GOING IN A FOUR SEVEN CAP.
I MEAN, THE DEAD IS IT, IS IT LOCKED IN AT 5, 6, 8, ASSUMING SO WE'RE, I MEAN, THAT'S WHERE PRICE IS TODAY, SO THAT'S WHY WE WANNA GET IT LOCKED IN.
YEAH, YOU CANNIBALIZING YOURSELVES PRETTY IMPRESSIVE.
I MEAN, PURE MARKET PRETTY DEVELOPMENT.
SO, AND WE GOT A DEAL WHERE WE'RE JUST NOT GIVING EVERYTHING TO THE TIFF AND THE PIT WHEN THERE IS MONEY COMING INTO THE DHFC FOR DOING THIS DEAL, WHICH I THINK IS IMPORTANT.
SO I THINK NEED OF THAT AND ALL PARTIES THAT HAPPEN.
SO, UH, JUST WANNA SAY GOOD JOB TO EVERYBODY TO GET IT TO THIS POINT.
UM, ALL RIGHT, SO IF THERE'S NO OTHER QUESTIONS, ANY, I I THINK WE GOT QUESTIONS FROM THE, UH, PEOPLE WHO ARE, UM, PARTICIPATING VIRTUALLY.
RIGHT? UM, I HAVE A QUICK QUESTION.
UM, DO WE JUST HAVE A SENSE OF HOW COUNCIL IS GONNA GONNA REACT TO THIS SO I CAN, I CAN TAKE THAT ONE.
UH, SEAN, LIKE WE, WE ACTUALLY TOURED WITH DIRECTOR OR NOT DIRECTOR, COUNCIL MEMBER RIDLEY, UM, LAST WEEK.
HE WAS QUITE, UH, EXCITED ABOUT IT.
HE SAYS HE WANTS TO FIND WAYS TO GET MORE AFFORDABLE HOUSING DOWNTOWN, WHERE THIS IS SMACK IN THE MIDDLE OF IT.
SO I THINK WE COULD BE SAFE TO SAY HE WILL DEFINITELY BE SUPPORTING HIM AND HIS DISTRICT.
UM, USUALLY COUNSEL THE FIRST TO, FOR THE MOST PART, TO, TO THE, UH, PERSON WHOSE DISTRICT THAT'S IN.
I KNOW THERE'S SOME WHO JUST PHILOSOPHICALLY OPPOSED TO REMOVING ANYTHING FROM TEXTUALS.
UH, SO I EXPECT THE NORMAL RESISTANCE UP FRONT.
BUT, UM, OTHERWISE, YOU KNOW, I THINK IF WE'VE DONE OUR HOMEWORK ON THIS ONE, IT LOOKS LIKE A PRETTY GOOD DEAL.
MAYBE THERE, THERE'S SOME SURPRISE QUESTIONS, BUT GOT ANY QUESTIONS FROM OTHER COUNCIL PEOPLE THAT YOU'RE ADDRESSING? I MEAN, 'CAUSE THE LAST ONE WAS MORE ABOUT DOC YEAH.
GETTING ANSWERED PRIOR TO THE MEETING.
WE'LL HAVE MORE, WE'LL HAVE MORE IN REGARD TO THE PROFORMA I THINK MOSTLY RIGHT? YEAH.
WE'LL HAVE MORE TIME BEFORE THIS ONE.
UM, I'M OBVIOUSLY, WE'RE, WE'RE SCHEDULING MEETINGS WITH ALL YOU TO MEET WITH OUR COUNCIL MEMBER.
WE'RE GONNA MENTION THIS ONE AND PLUG IF IT IS PASSED THERE BY TIME.
BUT, UM, YOU KNOW, WE TRY TO KEEP OUR BOLTS ON ON WHAT'S HAPPENING THEN.
UM, I WILL OPEN THE FLOOR FOR A MOTION IN A SECOND.
UM, VICE PRESIDENT GARCIA FAVOR? UH, DIRECTOR ELLIS IN FAVOR? I'M IN FAVOR.
UH, DIRECTOR MOORE OPPOSED, UM, SECRETARY PAGE? WE LOSE HIM? NO, HE'S THERE.
I'M GONNA GO ON TO DIRECTOR ZADY.
SO I DON'T KNOW, I THINK DIRECTOR PAGE MIGHT BE TRYING TO GET THAT IN.
IS THIS FOUR IN THE MORNING? OH, I DUNNO.
WELL, WE'LL JUST, UH, MARK HIM ABSENT, BUT, UM, MOTION STILL PASSES.
UM, WE'RE ON TO THE REVIEW AND DISCUSSION OF THE DHFC
[00:45:01]
TREASURER'S REPORT FOR THE 11 MONTH PERIOD, ENDING ON NOVEMBER 30TH, 2020 FOR MARCH.SO THIS IS FOR, UM, THE 11 MONTHS ENDED NOVEMBER 30TH.
UM, JUST TO LET Y'ALL KNOW, STRAIGHT UP ON TOP THAT YOU HAD FOR THESE 11 MONTHS, A NET CHANGE IN FINANCIAL POSITION OF $5,072,000, UH, FOR THIS PERIOD.
YOUR ENDING CASH IS RIGHT OVER AND, AND CASH EQUIVALENCE, UM, IS RIGHT OVER 18 MILLION.
THAT'S UP 3.4 MILLION FROM THE BEGINNING OF THE YEAR.
UM, WE'VE TALKED ABOUT IN THE PAST, THE PRIMARY REASONS FOR THE INCREASES.
MOST RECENTLY IN NOVEMBER, THERE WAS THE, THE 470 THOU $9,000 IN THE ACQUISITION FEE FROM THE YCL CLOSING.
UM, AND SO IT'S REALLY JUST KIND OF ROUNDING OUT HERE IN THESE, IN, IN THIS YEAR.
UH, QUITE A FEW CLOSINGS FEES ASSOCIATED WITH THAT AS WELL AS DEVELOPER FEES.
AND OF COURSE, THE, UM, ANNUAL ADMIN FEES FROM ONGOING BONDS THAT WERE OVER 347,000.
SO LOTS, LOTS OF MOVING PARTS THERE IN THE REVENUE.
VERY HEALTHY BALANCE THERE IN THE CASH, YOUR TOTAL INCOME FOR THIS SAME 11 MONTHS IS 5.5 MILLION WITH JUST, UH, 3.1 MILLION FOR THIS SAME PERIOD OF TIME BACK IN 2023.
YOU ARE OVER BUDGET, UH, BY ABOUT 1.8 MILLION.
IF YOU LOOK APPLES TO APPLES CASH REVENUE IN 2024 HERE TO DATE VERSUS WHAT WAS BUDGETED EXPENSES ARE EXTREMELY LOW FOR THESE 11 MONTHS.
UM, AT RIGHT AT $445,000 AS COMPARED TO A BUDGETED AMOUNT OF OVER 763,000.
SO, UH, LIKE I SAID BEFORE, NET CHANGE IN FINANCIAL POSITION OF $5 MILLION.
VERY HEALTHY, NOTHING, UM, UNUSUAL, UH, CONTINUED CLOSINGS AND, AND GOOD REVENUES COMING IN.
AND WHAT, WHAT DID WE, UM, DO FOR INTEREST INCOME FOR INTEREST? THIS, YOU ARE NOW AT INTEREST AND INVESTMENT INCOME OF 465,769, WHICH OUTPACES YOUR TOTAL OPERATING EXPENSES BY RIGHT AT $20,000.
YOU KNOW, IT
ANY OTHER QUESTIONS ON THE TREASURER'S REPORT? OKAY, THANK YOU SO MUCH AS ALWAYS.
AND THEN, UM, ITEM 10 IS THE REVIEW AND DISCUSSION OF THE CORPORATION'S PIPELINE REPORT AS OF JANUARY 7TH, 2025.
AND THIS IS WHERE WE HEAR A LITTLE BIT ABOUT HOW OUR, UM, ALLOCATIONS ARE DOING FOR OUR DEALS THAT WE'VE GIVEN AN INDUCEMENT ON.
WELL, I DID WANNA NOTE, WE, WE CLOSED THE WATER PRODUCT GOLD NORTH DEAL IN DECEMBER.
SO ONE MORE CLOSING, STOCKED UP.
UM, WE ARE EXPECTING TO CLOSE TENON NEXT MONTH, AND THEN THERE'S 12TH MARCH.
SO WE HAVE A HEALTHY PIPELINE GOING FORWARD WITH COUPLE PROPERTIES.
UH, AND THEN BRAXTON, ARE YOU STILL ON? HOPEFULLY WE WANT, WE NEED TO, OR MAYBE, I DON'T KNOW.
MAYBE GEORGE, DO YOU, CAN YOU TELL US WHAT WE'RE DOING? OH, BRAXTON'S THERE.
COULDN'T GET MY VIDEO TO TURN ON.
I KNOW I HAVE TO HAVE THAT ON TO SPEAK
UM, I, I KNOW WE HAVE, UM, YOU KNOW, UH, HIGHLINE ILLINOIS DID CONFIRM THAT THE, UH, TDHA CONFIRMED THEIR TDHC APPLICATION WAS SUBMITTED EARLIER TODAY.
SO THEY SHOULD BE RECEIVING A RESERVATION FROM THE BOND REVIEW BOARD EITHER LATER TODAY OR POSSIBLY TOMORROW.
UM, FOR, FOR HIGHLINE, ILLINOIS.
UH, WE ALSO HAD, UM, LET'S SEE, I KNOW WATER'S AT STONE CREEK.
UH, OR SORRY, THAT'S A DIFFERENT ISSUE.
I'M LOOKING AT THE PAP SPREADSHEET.
UM, IT'S MY UNDERSTANDING THAT, UM, ENCLAVE ON WHEATLAND IS, IS LOOKING TO, TO WITHDRAW THEIR CURRENT, UH, PAV APPLICATION AND REAPPLY, UH, JUST TIMING DID NOT WORK OUT, UH, TO, TO MOVE QUICKLY ON THAT APPLICATION THERE.
SO THEY'LL BE AT THE END OF THE LINE, UH, FOR, FOR ALL PAV APPLICATIONS.
UM, LEGACY AT KITE LEGACY ON KI,
[00:50:01]
UM, THAT WAS A DEAL THAT THAT DID WAS INDUCED BY DALLAS HFC.HOWEVER, THEY ALSO MADE APPLICATION THROUGH T-D-H-C-A, UH, AND, UH, FOR A 20, UH, 2024 CARRY FORWARD DESIGNATION, WHICH THEY DID RECEIVE, UH, EARLIER THIS WEEK.
SO THEY WILL BE, UH, WITHDRAWING THEIR, THEIR DALLAS HFC APPLICATION SHORTLY, UH, AND BE MOVING FORWARD WITH T-D-H-C-A AS BOND ISSUER.
I, I WOULD EXPECT THIS TO BE THE SAME, UM, YOU KNOW, STRUCTURE AS, AS LOOP RIGID LOOP 12, WHERE THE DALLAS HFC WOULD BE EXPECTED TO BE THE GENERAL PARTNER, UH, WITH T-D-H-C-A AS AS THE ISSUER.
UM, WE ALSO HAVE, UH, HEIGHTS AT COUNTRY CREEK.
UH, IT'S MY UNDERSTANDING THEY'RE, THEY'RE ALSO LOOKING TO POSSIBLY WITHDRAW THIS, THIS RENT, UH, THIS, UH, APPLICATION AS WELL.
UM, WHICH BRINGS US TO PALLADIUM AT BUCKNER STATION.
UH, THAT SHOULD BE WITHIN THE MONEY ONCE ALL THESE KIND OF WITHDRAWALS ARE, ARE, YOU KNOW, UM, SUBMITTED AND, AND, AND, UM, AND ENACTED BY THE, THE BOND REVIEW BOARD OVER THE NEXT, YOU KNOW, WEEK OR SO.
SO THAT WOULD, THAT'S THE, UH, PALLADIUM BUCKNER STATION DEAL, UH, THAT, THAT I WOULD EXPECT PROBABLY LATER IN THE WEEK, UH, OR EARLY NEXT WEEK, UH, WOULD START LOOKING AT THEIR RESERVATIONS.
UH, THAT, THAT SHOULD KIND OF STOP EVERYTHING IN REGION THREE AT THAT POINT, AT WHICH, UM, YOU KNOW, THE, THE REMAINING APPLICATIONS, WHICH WOULD BE THE GATEWAY AT TRINITY FOREST, LEGACY AT BELTLINE, CF HAN TUSCANY, AT GOLDMARK, TORRINGTON DAVIS, TORRINGTON FOREST, AS WELL AS THEN, UH, WESTMORELAND TOWN HOMES, WHICH HAS, YOU KNOW, ALREADY WITHDRAWN AND REAPPLIED.
THOSE WILL BE LOOKING AT RESERVATIONS LIKELY AND SOMETIME IN THE SUMMER TO FALL.
UM, IT'S, IT'S, I KNOW THERE'S A LOT OF RESERVATIONS OUT HERE, UH, FOR, FOR, OR APPLICATIONS APOLOGIES FOR, FOR DALLAS HFC.
UH, BUT TYPICALLY WITH THE P PROGRAM, WE USUALLY HAVE EBBS AND FLOWS THROUGH THE, THE, THE, THE PROGRAM YEAR, WHICH IS, RIGHT NOW WE'RE KIND OF AT THE VERY BEGINNING WHERE PEOPLE ARE GETTING THEIR INITIAL RESERVATION, UM, EMAILS FROM THE VRB AND KIND OF MAKING DECISIONS AS TO WHETHER OR NOT THEY'RE FARTHER ENOUGH AHEAD WITH THEIR DEBT AND EQUITY OR, OR PERMITTING, UH, PHASES.
AND SOMETIMES THEY WILL WITHDRAW AND KIND OF, YOU KNOW, START OVER AGAIN AND, AND, AND MOVE FOR A, A MORE SUMMER TIME RESERVATION.
UH, AND THEN ONCE WE KIND OF GET INTO JUNE AND JULY, WE'LL SEE RESERVATIONS THAT ARE EITHER GOING TO, YOU KNOW, CLOSE, UH, OR, OR SOMETIMES THEY JUST, THEY CAN'T GET THROUGH THEIR, THEIR PERMITTING PROCESS OR, OR THEY'VE HAD ISSUES WITH RATES OR DEBT AND EQUITY KIND OF REVIEWS.
SO THEY'LL HAVE TO WITHDRAW AND WHICH WE'LL SEE MORE RESERVATIONS KIND OF DROP DOWN WITH VOLUME CAP TO THESE APPLICATIONS WAITING IN LINE LIKE GATEWAY TRINITY AND, AND LEGACY ON BELTLINE.
SO THERE'S A, A LOT STILL GOING ON FOR DALLAS, I WOULD EXPECT KIND OF, YOU KNOW, LIKE I SAID, YOU KNOW, PROBABLY TWO RESERVATIONS TO KIND OF COME THROUGH IN THE NEXT, YOU KNOW, WEEK OR SO.
AND THEN I WOULD EXPECT, YOU KNOW, PROBABLY TWO OR THREE MORE OVER THE SUMMER AND MAYBE TWO OR THREE MORE OVER IN, INTO THE FALL AND, AND IN AUGUST INTO SEPTEMBER.
SO STILL, STILL A LOT KIND OF HAPPENING WITH THE, WITH THE P PROGRAM STILL, STILL KIND OF A LOT TO SHAKE OUT TO KIND OF GET EXACT I, UH, IDEA ON TIMING.
'CAUSE WE'RE STILL JUST TWO WEEKS INTO THE PROGRAM HERE AT THIS POINT.
AND REMIND ME, SO AM I CORRECT THAT, UM, THAT THERE'S A POINT WHERE THE REGION THREE, UM, KIND OF, UM, GOES AWAY AS SOMETHING THAT DETERMINES IF YOU'RE GETTING THE ALLOCATION AND IT JUST BECOMES EVERYBODY GOING FOR THE SAME DOLLARS? RIGHT, RIGHT.
SO ON MARCH 1ST, THERE'S THE REGIONAL COLLAPSE AND THAT'S, THAT'S WHEN ALL THE HFC APPLICATIONS, WHICH ARE DIVIDED OUT INTO THOSE 13 REGIONS, WOULD GO INTO ONE POOL OF JUST HFC APPLICATIONS.
UM, AND WHENEVER THERE'S ANY TYPE OF UNUTILIZED KIND OF VOLUME CAP IN THOSE REGIONS FOR, FOR REGION THREE, FOR EXAMPLE, WE HAVE SO MANY APPLICATIONS, BUT IF THERE'S SAY $5 MILLION THAT'S LEFT OVER IN THAT REGION, THAT'S NOT ENOUGH FOR A NEW RESERVATION THAT WOULD GO INTO THIS POOL.
OR IF THERE'S ANY UNUTILIZED, UM, REGIONS LIKE REGION 11 DOWN IN THE VALLEY, UH, TYPICALLY DOESN'T HAVE A LOT OF APPLICATIONS OR, UM, REGION, UH, EIGHT KIND OF IN, IN WEST TEXAS OR REGION 13 AND FAR WEST TEXAS IN EL PASO.
THOSE, THOSE AMOUNTS WOULD GO TO, TO FUNDS A FEW APPLICATIONS.
THERE'S, THERE'S SEVERAL, UM, PRIORITY ONE APPLICATIONS THOUGH IN THESE SMALLER REGIONS THAT ARE LIKELY GONNA TAKE THAT, THAT, UH, REGIONAL ALLOCATION IN MARCH THAT THAT'S GONNA JUMP IN FRONT OF EVERYONE THERE.
AND IS THAT WHERE THE LIKE LOTTERY NUMBER COMES IN, OR IS THE LOTTERY THAT'S RIGHT.
SO IT STILL GOES BY LOTTERY, UH, AT THAT POINT.
SO REALLY WE, WE, WE USE THE LOTTERY NUMBER UNTIL WE GET THROUGH ALL OF THE LOTTERY APPLICATIONS, WHICH I THINK THERE WAS AROUND 120 THIS YEAR.
SO DOWN FROM LAST YEAR, UH, AMOUNT OF LOTTERY APPLICATIONS, BUT STILL A, A A A, A GOOD SIZE AMOUNT OF, OF LOTTERY APPLICATIONS WERE, WERE, WERE RECEIVED.
ANY OTHER QUESTIONS? THIS WHOLE, UH, ALLOCATION THING DEFINITELY MAKES MY HEAD EXPLODE, BUT
[00:55:01]
I MEAN, THE MAIN THING THAT WE'RE DOING RIGHT NOW IS JUST MONITORING THE, UH, THE, THE, THE APPLICATIONS THAT ARE OCCURRING IN LINE AND, AND, AND JUST WATCHING WHAT, WHAT IS WITHDRAWN AND MAKING SURE WE'RE REACHING OUT TO DEVELOPERS TO LET THEM KNOW THAT, HEY, YOU, YOU, THERE'S A GOOD LIKELIHOOD THAT YOU'RE GONNA BE, YOU'RE GONNA BE REACHED THE NEXT COUPLE WEEKS FOR A RESERVATION.
'CAUSE THERE IS SOME BACKEND, UH, WORK THAT THEY HAVE TO DO BY GETTING LIVE TECH APPLICATIONS TOGETHER FOR T-D-H-C-A, WHICH THOSE ARE, YOU KNOW, JUST LARGE, YOU KNOW, CUMBERSOME APPLICATIONS TO GET TO, TO COMPLETE.
SO WE WANNA TRY TO GIVE THEM AS MUCH NOTICE AS WE CAN.
SO WE'RE TRYING TO ENSURE THAT, YOU KNOW, THE VIABILITY FOR ALL THESE DEALS BY GIVING ADVANCED NOTICE TO THESE DEVELOPERS.
I'M NOT GET A C WELL, THAT'S WHAT I'M SAYING.
YEAH, YOU GOT MUSICAL, YOU GOT, YOU GOT A D 30.
OH WAIT, WE DON'T HAVE A D 30.
AND JUST BEFORE, UM, OUR, UH, BOARD MEMBERS DISPERSE, UH, WE ARE HAVING OUR, UH, ARE WE CALLING IT A STRATEGY SESSION OR STRATEGY A RETREAT, UH, THURSDAY EVENING.
I REALLY HOPE, I KNOW THAT NOT EVERYBODY CAN MAKE IN PERSON.
UM, ALWAYS, IT'S ALWAYS DIFFICULT TO, TO MANAGE THAT, BUT I HOPE THAT AS MANY TIMES AS POSSIBLE WILL COME IN PERSON BECAUSE IT'S OUR OPPORTUNITY TO REALLY OPPORTUNITY, UH, GET TO KNOW EACH OTHER BETTER.
AND, UM, AND UH, IT, YOU KNOW, THERE, UM, DOING THINGS VIRTUALLY IS GREAT.
IT HELPS US A LOT, BUT I THINK THAT YOU, UH, CAN SOMETIMES HAVE BETTER INTERACTIONS WHEN YOU'RE IN PERSON.
SO I HOPE THAT AS MANY OF YOU AS POSSIBLE WILL TRY TO MAKE IT.
SO YEAH, HOPEFULLY I WILL SEE YOU.
THEN ANOTHER PLUG JUST, IT'S AN OPPORTUNITY FOR YOU GUYS ACTUALLY AS A BOARD TO SAY, HEY, HERE'S A, YOU KNOW, WE DON'T GET THAT LUNCH.
WE HAVE VERY SPECIFIC THINGS THAT HAVE TO GET DONE ON OUR REGULAR MEETINGS, YOU KNOW, EVERYBODY HAS THE LUNCH HOUR AND THAT'S PRETTY MUCH IT.
SO THIS IS KIND OF IN THE EVENING YOU'LL TAKE SOME TIME TOGETHER AND SAY, HERE'S OUR TOOL FOR THE NEXT YEAR.
UM, WE ARE AJOUR 1 0 4, IT'S LIKE RECORD SEVEN FOR US.
I'LL, I'LL SEE Y'ALL THURSDAY, JOHN CORPORATE.