This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
End of dialog window.
[00:00:01]
OKAY.[Dallas Housing Finance Corporation on March 11, 2025.]
AND I'M GONNA, UH, CALL TO ORDER THE MEETING OF THE DALLAS HOUSING FINANCE CORPORATION, UM, WITH OUR MARCH MEETING.AND, UM, I WILL TURN IT OVER TO MS. SCHROEDER TO DO THE ROLL.
WHEN I CALL YOUR NAME, PLEASE INDICATE IF YOU ARE PRESENT.
SO SHE'S GETTING ON LINE IN A FEW MINUTES.
IS SHE YOUNG? DIRECTOR KEVIN HINTON? PRESENT.
NOT
PRESENT IS THAT WE DO HAVE A COURT.
I WOULD NOW LIKE TO, UM, OPEN THE MEETING TO ANY PUBLIC COMMENTS ON ITEMS FOUR THROUGH 11 OF THE AGENDA.
I DIDN'T KNOW IF YOU WERE ONLINE OR IN PERSON.
HONESTLY, I'M NOT FAMILIAR WITH THE AGENDA.
AND I'M HERE TO SPEAK ON BEHALF OF MY SON AND MY COMMUNITY.
UH, GO AHEAD AND LET US KNOW YOUR NAME.
I'M GONNA, THEN THERE WON'T BE HUNDRED THOUSAND WHEN GET HERE.
I'M TRYING TO SIDE DOWN THE STREET ON WEST DALLAS AT 58 8 0 BURNOW DRIVE, DALLAS, TEXAS 7 5 2 1 2.
AND WHAT WAS IT? WHAT IF YOU WOULD GIVE US YOUR NAME PLEASE.
HE'S ONLY THREE YEARS OLD AND HE'S STRUGGLING RIGHT NOW, NOW IS CONSTANTLY SICK DUE TO THE ENVIRONMENT THAT HE'S IN.
HE'S DEVELOPING PNEUMONIA AND THIS COULD, UM, POTENTIALLY BE A RISK TO HIS LIFE.
MY ENVIRONMENT IS NOT THE BEST AND I KNOW WHAT I WAS SIGNING UP FOR WHEN I INITIALLY APPLIED TO THIS LOCATION.
THERE'S NO FUNDING THAT'S GOING TOWARDS THE PARKING LOTS.
THERE'S ABOUT FIVE POTHOLES IN MY PARKING LOT.
THE SIDEWALK IS FULL OF CRACKS.
THERE'S LITTLE KIDS WITH WHEELCHAIRS AND YOU KNOW, THEY'RE STRUGGLING.
I LIVE ALL THE WAY IN THE BACK, SO WHEN YOU PULL IN, IT LOOKS OKAY AND THE OFFICE IS RENOVATED.
WHERE THEY PARK THEIR CARS IS GOOD.
BUT WHAT ABOUT THE RESIDENTS? I BELIEVE THAT REBUILDING OUR COMMUNITY CAN CREATE A BETTER FUTURE FOR THE NEXT GENERATION WITH MORE RENOVATIONS TO THE UNITS AND THE SIDEWALKS AND THE PARKING LOTS.
THINGS LIKE THE PLUMBING AND THE WIRING, THE ELECTRICAL WIRING AND THE UNITS.
CAN YOU REPEAT YOUR, THE ADDRESS FOR ME? IT'S 5 8 0 RIGHT NOW.
WHAT'S THE CROSS STREET? SINGLETON? YEAH.
[00:05:01]
I'VE SPOKEN TO THE MANAGEMENT THERE SEVERAL TIMES.
I'VE INVOLVED MY SOCIAL WORKER BECAUSE MY SON IS, UH, IN A FRAGILE STATE.
AND, UM, AND IT'S JUST REALLY CONCERNING FOR ME AS MY MOM.
I'M A CONCERNED PARENT AND THERE'S OTHER, YOU KNOW, FAMILIES THERE THAT THEY COULD BENEFIT FROM PLUMBING, ELECTRICAL, AND RENOVATING UNITS.
ARE WE ALLOWED TO SPEAK ON THIS OR IS IT JUST PURELY PUBLIC COMMENT? IT'S JUST PUBLIC COMMENT.
IT'S JUST, BUT IF YOU WANNA, IF YOU WANNA GET WITH US AFTER THE MEETING, WE'LL TAKE INFORMATION DOWN AND WE CAN SEE IF WE CAN DO IT.
THIS ISN'T ONE OF OUR PROPERTIES, BUT WE MIGHT BE ABLE TO POINT YOU IN THE RIGHT DIRECTION.
THANK YOU VERY MUCH, MS. FIGUEROA, RIGHT? YES.
WE GET WITH US AFTER THE MEETING AND WE WILL SEE IF THERE'S ANYTHING WE CAN DO.
ANY OTHER PUBLIC COMMENTS? OBJECT.
CAN WE PUT, IS THIS GUY
MR. KENNEDY, UM, DID NOT, IS ONLINE.
HE'S ALSO A REGISTERED PUBLIC SPEAKER.
MR. KENNEDY, CAN YOU UNMUTE YOURSELF, PLEASE? YES, MA'AM, I'M HERE.
UH, GOOD AFTERNOON, UH, FOR THIS, UH, OPPORTUNITY TO SPEAK TO, UH, SPEAK, UH, IN THIS, UH, MEETING.
I'M A, A PROFESSIONAL, I'M A PAROLE OFFICER HERE IN DALLAS, AND, UH, ALSO A, A SOCIAL WORKER DOING MY MASTER'S PROGRAM SOCIAL WORK.
I'M HERE TODAY AS SPEAKING AS, UH, A POTENTIAL SOCIAL WORKER, NOT AS A PAROLE OFFICER, AND, UH, UH, MY EXPERIENCES SO FAR.
I LIVE, UH, AT 9 7 4 7 WHITE HOUSE DRIVE, UH, IN NORTH DALLAS.
UH, THE ZIP CODE IS 7 5 2 4 3.
SO I'M HERE TODAY TO SPEAK, UH, ON SOME OF THE THINGS THAT I HAVE ENCOUNTERED OR EXPERIENCES I'VE HEARD, UH, IN MY, UH, INTERNSHIP AS A SOCIAL WORKER, UH, THAT HAS GIVEN ME SOME CONCERN.
AND WHEN I LOOKED AT THE AGENDA, UH, I SAW, UH, SPECIFICALLY ABOUT THE, UH, SINGLE FAMILY HOME THAT IS, UH, BEING, UH, APPROVED TO BE BUILT AT, UH, SEATTLE, UH, CLARK AND WEST CAMP WOOD CAMP WISDOM.
SO WHEN I SAW THAT, I FELT LIKE I NEEDED TO COME HERE AND SPEAK, UH, ABOUT WHAT I THINK, UH, ARE, UH, A VERY PRESSING ISSUE IN THE CITY OR IN MY EXPERIENCE AND, UH, GOING, UH, TO DIFFERENT PLACES.
IN THE COURSE OF MY, UH, INTERNSHIP, UH, I HAD, UH, TO ENCOUNTER A LOT OF, UH, HOMELESS PEOPLE WHO GO TO, UH, OTHER PEOPLE AND, UH, YOUNG PEOPLE THAT ARE EXPERIENCING HOMELESSNESS.
AND SOME OF THESE PEOPLE, UH, WHILE EXPERIENCING THIS HOMELESSNESS ARE ALSO EXPERIENCING MENTAL HEALTH PROBLEMS. SO, TO SOME DEGREE, UH, THEIR MENTAL HEALTH ISSUE AGGRAVATE THEIR, UH, HOMELESSNESS.
SO, UH, THERE ARE A WHOLE BUNCH OF STUDIES THAT ARE LOOKED AT AND, UH, UH, UH, WHO READ.
THEY ARE NOT GOING TO JUST DWELL ON THOSE, UH, STUDIES.
SO MY CONCERN IS WHILE THIS, UH, SINGLE HOME THAT, UH, THE CITY IS ABOUT TO APPROVE, UH, IS A VERY WELCOME DEVELOPMENT, I, I FEEL THAT, UH, THERE SHOULD BE SOMETHING THAT SHOULD BE DONE ABOUT, UH, UH, CREATING AN OPPORTUNITY FOR PEOPLE THAT BECAUSE, UH, MOST OF THESE, UH, LIKE THESE PLACE ARE BEING CONSTRUCTED, THOSE ARE AFFORDABLE HOUSING, WHICH MOST TIMES ARE BASED ON THAT ARE INCOME DRIVEN, THEY
[00:10:01]
MAYBE SOME, YEAH.SO IF YOU WANNA SUBMIT A WRITTEN STATEMENT, WE CAN TAKE A LOOK AT THAT MORE CLOSELY.
IF THREE MINUTES IS NOT ENOUGH, WE APPRECIATE THE COMMENTS.
UM, DIRECTOR ALLEN IS NOW ON, SO I WANNA MAKE SURE THIS GETS MARKED PRESENT.
THANK YOU, DIRECTOR ALLEN, YOU'RE ON IN TIME TO VOTE FOR THE MINUTES.
CITY OF DALLAS HOUSING FINANCE CORPORATION MEETING.
UM, AND, UH, I WANNA POINT OUT THAT, UM, IN OUR, IN YOUR ORIGINAL PACKET, UH, WHEN YOU WERE GIVEN THE MINUTES, THERE WAS A MISSPELLING OF BRAXTON'S LAST NAME, WHICH IS PARSONS, P-A-R-S-O-N-S, INSTEAD OF PARSONS, P-E-R-S-O-N-S.
BUT THAT WAS THE ONLY THING THAT I NOTICED, UH, THAT WAS A CORRECTION.
SO DOES ANYONE ELSE HAVE ANY CORRECTIONS OR ADDITIONS? I MOVE TO APPROVE THE MINUTES WITH THE CORRECTION.
UH, AND DO I HAVE A SECOND? SECOND, SECOND.
ANY OPPOSED? OKAY, MINUTES ARE APPROVED.
UM, THE AGENDA IS THAT WE'RE GONNA DO AN EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 51 0.074 PERSONNEL MATTERS.
SO, UM, I'M GOING TO READ THE SCRIPT FOR US TO GO INTO EXECUTIVE SESSION, UM, BUT I GUESS MAYBE I'LL WAIT FOR THE ROOM TO CLEAR OUT, I THINK IN THE OPEN MEETING.
IT IS, UM, 12:14 PM ON MARCH 11TH, 2025.
THE DALLAS HOUSING FINANCE CORPORATION WILL NOW GO INTO CLOSED SESSION UNDER SECTION 5 51 0.074 OF THE TEXAS OPEN MEETINGS ACT ON THE FOLLOWING MATTER DESCRIBED ON TODAY'S AGENDA TO DELIBERATE A DISCRETIONARY ANNUAL BONUS FOR CALENDAR YEAR OF 2024 FOR THE GENERAL MANAGER.
AND IF YOU'RE A BOARD MEMBER ONLINE, IF YOU CAN SWITCH OVER TO THE OTHER WEBEX LINK.
WE'RE GONNA SHUT THIS ONE DOWN WHILE THEY HAVE IT, AND THEN WE'LL REOPEN IT UP IN THE EXECUTIVE SESSION.
AND HOW WILL WE KNOW THAT? UM, EVERYBODY'S GOTTEN ONTO, IT'LL SHOW ON THERE.
AARON, WILL IT SHOW US? IT'LL SHOW ON HERE.
WE'LL, WE'LL OPEN IT LIKE ON THE OTHER LINE.
SO WE'RE GONNA SHUT THIS OPEN MEETING DOWN.
YOU GUYS WILL HAVE THAT EXECUTIVE SESSION, THEN WE'LL REOPEN IT AFTER THAT.
SO IF YOU'RE BOARD MEMBER, PLEASE FIND THE OTHER INVITE.
SECRETARY PAGE APPROVE AND DIRECTOR ZADY APPROVE.
ALL RIGHT, NOW WE ARE NOW ON AGENDA ITEM SIX.
OH, SORRY, THAT WAS, THAT WAS AGENDA ITEM SIX.
AGENDA ITEM SEVEN IS RESOLUTION FOR OAK AND EL MTE FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 26 27 LIVE OAK STREET, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 0 4.
AND I'LL TURN IT OVER TO GENERAL MANAGER QUINTO? YES.
SO WE ARE IN THE PROCESS OF TRYING TO CLOSE UP THIS DEAL.
WE'VE BEEN WORKING ON IT FOR QUITE A WHILE NOW.
UH, IT HAS NOW BEEN APPROVED TO GO BACK TO COUNCIL, WELL, TO THE HOUSING COMMITTEE ON MARCH 24TH FOR A PREVIEW, AND THEN FINAL APPROVAL ON THE 26TH AFTER WHICH WE WILL BE ABLE TO CLOSE AS SOON AS I CAN GET EVERYTHING ALL WRAPPED UP.
THESE LOAN DOCUMENTS, UM, WHAT I TOLD ARE PRETTY MUCH THE SAME AS WE DID FOR ACCESS TEST AT PARK WITH ALL THE MANAGEMENT AGREEMENTS AND, AND EVERYTHING THAT YOU GUYS AGREED FOR THAT.
SO LUCKILY IT'S BEEN KIND OF AN EASIER, UH, PRODUCTION OF THESE DOCUMENTS.
BUT IF THERE ARE ANY QUESTIONS, NOW IS TIME ASK THEM.
I THINK JOHN ACHMAN AND SEAN ROSSON ARE ON THE CALL.
UM, HAVE YOU HAD, UM, CONVERSATIONS WITH COUNCIL MEMBER RIDLEY ABOUT THIS? AND IF SO, CAN YOU CHARACTERIZE? YES.
[00:15:01]
SO, YOU KNOW, OBVIOUSLY THIS WAS ONE OF THE PROJECTS THAT GOT PAUSED AND THE HOUSING COMMITTEE STARTED TO TAKE CLOSER LOOK AT OPERATION SINCE THEN.AND WE'VE TOURED THE SITE, UH, SEAN AND JOHN AND COUNCIL MEMBER RIDLEY, HE IS VERY MUCH, UH, BEHIND THIS.
HE, HE, HE'S VERY ENTHUSIASTIC BEHIND IT.
HE WANTS TO SEE MORE TYPES OF AFFORDABILITY IN THE DOWNTOWN AREA.
HE THINKS THIS IS A WONDERFUL CANDIDATE AND HE'S SINCE HAD CONVERSATIONS WITH STAFF, WITH ASSISTANT CITY MANAGER, THE HOUSING DIRECTOR, AND THEIR STAFF, UH, MAKE SURE THAT EVERYTHING IS HAPPENING BEHIND THE SAME COUNCIL.
SO WE'RE VERY PLEASED WITH THAT SUPPORT.
ANY OTHER QUESTIONS? ALL RIGHT.
DO I HAVE A MOTION? AND A SECOND? I WILL, UH, AS THE DISTRICT 14 REPRESENTATIVE, SINCE THIS IS IN DISTRICT, I WILL, UH, NEED TO ONE SECOND.
NO RELATION TO THE DISTRICT THOUGH.
MY FRIEND TONY HAY DIRECTOR PAGE.
YOU KNOW, IT JUST STRUCK ME THAT, UM, I HATE TO GO BACK LIKE THIS,
AND WHO'S THE SECOND? I'LL SECOND.
SORRY, I JUST NOTICED THAT I HADN'T MADE A NOTE OF A MOTION IN A SECOND.
BUT ON THIS ONE WE HAVE A MOTION BY SECRETARY PAGE AND A SECOND BY DIRECTOR ELLIS.
DIRECTOR ALLEN IN FAVOR, DIRECTOR NABI.
DIRECTOR MARSHALL C TREASURER, FARROW APPROVED DIRECTOR COLLINS APPROVE.
UH, VICE PRESIDENT GARCIA APPROVE.
SORRY, I ACTED A LITTLE TOO FAST.
UH, A NEXT ITEM ON THE AGENDA IS ITEM NUMBER EIGHT, RESOLUTION FOR MAMA CREEK AT CLARK ROAD.
SINGLE FAMILY DEVELOPMENT TO BE LOCATED NEAR THE INTERSECTION OF CLARK ROAD AND WEST CAMP WISDOM ROAD, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 3 6.
AND AGAIN, I WILL TURN IT OVER TO GENERAL MANAGER QUINTO.
YES, WE'RE HAPPY TO SEE, UM, JAMES ARMSTRONG.
I, SO THE HOPE BACK TO THIS IS THE PROPOSAL FOR A SOFT LOAN FROM THE DHLC.
WE'RE HERE TRYING TO SUPPORT SINGLE FAMILY HOME DEVELOPMENT.
AND SO, UH, JAMES AND HIS COMPANY HAVE BROUGHT TOGETHER A PROPOSAL FOR US TO LOAN THEM OUT A MILLION DOLLARS TO SUPPORT THE DEVELOPMENT OF INFRASTRUCTURE FOR THE SALE OF, I THINK, 45 HOMES IN THE MOUNTAIN CREEK AREA.
UM, THIS IS JUST AN MOU, SO IT'S NOT EXACTLY A COMMITMENT YET, BUT IT'S KIND OF, WE'RE AGREEING TO TERMS ON HOW WE CAN ACTUALLY DO THIS.
UM, I'LL SAVE YOU GUYS ALL THE SUMMARIZATION, BUT REALLY, UH, WE WOULD LOAN THIS MONEY AS SOON AS I CAN QUOTE 'EM ALL THE FINANCING, BUT STILL HAVE THE ZONING PENDING.
SO IT'S GONNA BE A LITTLE BIT, UM, COULD BE NEXT YEAR OR THE FOLLOWING YEAR BEFORE ANYTHING ACTUALLY CLOSES.
IT STARTS CONSTRUCTION, BUT I THINK, UM, WE ARE SETTING A TIMER AS SOON AS THEY CLOSE ON THEIR CONSTRUCTION FINANCING, THEN THEY HAVE ANOTHER TWO YEARS TO START TO FINISH THE BILLS.
AND THEN ONCE THEY START SELLING THE LOTS, UH, THAT PRORATED PORTION OF THE LOAN WILL BE PAID BACK TO THE HFC UPON THE LOT SALE.
AND SO IDEA IS THAT RESTRICTING THE INCOMES OF THE BUYERS AND SO THAT THAT WILL HELP, YOU KNOW, FOSTER, I GUESS, GENERATIONAL WEALTH BUILDING FOR BOTH FOLKS WHO ARE DISADVANTAGE AND HAVE ABLE TO PROVIDE THAT PRODUCT THAT CAN SERVE THAT INTO THE CLASS.
I MISSING ANYTHING? JAMES, IF YOU WANNA COME UP HERE TO THE MIC IF ANYONE ELSE HAS QUESTIONS.
YOU WANT? GOOD AFTERNOON EVERYONE.
UM, OVERVIEW, AARON, I DON'T KNOW OTHER DETAILS.
UM, BUT THE
OUR PARTNER IS GREENLEAF VENTURES, VICTOR TOLEDO, AND, UM, THIS WOULD BE OUR THIRD SUBDIVISION.
WE'VE DONE IT CHARIOT VILLAGE ACROSS FROM STYLELINE HIGH SCHOOL.
UM, WE'VE ALSO CURRENTLY WORKING IN WEST
[00:20:01]
ISH TRINITY WEST, WHICH IS A MIXED SINGLE FAMILY AND MULTIFAMILY 18 HARE SITE.UH, WE HAVE A 80 UNIT PROJECT WITH THE DALLAS COUNTY AND GREENLEAF, UM, IN PLEASANT GROVE AND CLARK ROAD WOULD BE 45 UNITS, UM, SORT OF IN THE 4 0 8 CLARK ROAD AREA.
SO I, I HAD A COUPLE OF THINGS, UM, TO ASK ABOUT IN THE MOU.
UM, FIRST OF ALL, I, THE WAY THAT, AT LEAST THE WAY THE M THE DRAFT OF THE DOCUMENT READS RIGHT NOW, IT TALKS ABOUT PAYING ONE 45TH OF THE LOAN BA BACK, UM, UPON THE SALE OF EACH UNIT, BUT YOU'RE GONNA GET DIFFERENT PRICING FOR THE DIFFERENT UNITS.
SHOULD THERE BE SOME CORRELATION BETWEEN THE PRICING OF THE UNIT AND THE AMOUNT OF PRINCIPLE TO BE PAID? OR, OR, OR CAN YOU, WOULD IT WORK, WILL IT WORK FOR YOU FOR IT TO BE EXACTLY ONE 45TH? WELL, THE WAY WE SEE IT IS, UH, IT'S BASICALLY DIVIDING INFRASTRUCTURE COSTS AMONGST THE HOMES EVENLY.
IT'S ALMOST LIKE, UH, ACQUISITION, LIKE LAND ACQUISITION.
SO AN ACQUISITION WOULD BE THE SAME LEVEL, RIGHT? NO MATTER THE AMOUNT OF, UH, THE SALES PRICE OF THE HOMES.
AND WE DID BREAK IT UP SO THAT YOU ALL KNOW WHAT YOU'RE INVESTING IN, IN THE PRESENTATION.
WE ARE PROJECTING ABOUT 20% OF THE HOMES TO BE BETWEEN 60 AND 80% OF THE AREA MEDIUM INCOME.
UH, ANOTHER ABOUT 25 HOMES BETWEEN 80 AND A HUNDRED, AND THEN THE REMAINING 10 TO BE ABOVE, UH, ONE 20 AFTER ONE UP TO ONE 20 MARK.
UH, WHAT WE'VE SEEN IS THAT OUR SALES PRICES ARE STILL ABOUT 10 TO 15% LOWER THAN, UM, MARKET SALES PRICE EVEN IN THAT AREA.
AND I THINK YOU ARE HOPING TO, HOPING, UH, PROVIDE FOR SOME DOWN PAYMENT ASSISTANCE AS WELL.
WHICH WOULD MAKE IT DIFFERENT THAN OTHER HOMES ABSOLUTELY.
UM, AND THEN I THINK THE WAY IT'S WORDED, IT TALKS ABOUT 24 MONTHS TO COMPLETE, AND I THINK IT NEEDS TO BE MADE CLEAR TO COMPLETE ALL OF THE UNITS, RIGHT? LIKE, IS THAT THE CONCEPT THAT THEY WOULD ALL BE DONE WITHIN 24 MONTHS, BUT THEN IT ALSO HAS THIS TIME PERIOD, UM, FOR THE SALE OF THE UNIT UPON COMPLETION.
SO MY QUESTION IS, WILL THAT, THAT TIME PERIOD, ONE TIME PERIOD'S GONNA RUN FROM TOTAL FINISHED CONSTRUCTION, RIGHT? BUT THAT OTHER TIME PERIOD PROBABLY NEEDS TO RUN FROM THE COMPLETION OF THAT PARTICULAR UNIT.
AND I THINK MAYBE THE WAY WE'VE WORDED IT NEEDS TO BE MORE CLEAR.
WE CAN SPECIFY PER PER UNIT THERE ON THE YEAH.
BECAUSE THEY KEEP BOTH SEATS SEEM JUST, JUST SAY THE WORD CONSTRUCTION AND TO ME IT WASN'T CLEAR ENOUGH.
A LOT OF THESE ITEMS ARE SITUATED IN THE CHECKLIST OF ITEMS THAT HAVE TO BE PROVIDED AFTER WE AGREE ON THE MOU.
AND MEAN BEFORE WE ACTUALLY CLOSE ON ANY SORT OF LOAN, YOU'RE GONNA FILL US IN WITH ALL THESE ADDITIONAL SUBSEQUENT DETAILS.
UM, AND THERE, THERE ISN'T MUCH OF A DIFFERENCE BETWEEN THE TWO, UM, BECAUSE WE HAVE VERY ROBUST HOME BUYER EDUCATION PROCESS, AND SO WE HAVE THE BUYER BY THE TIME WE START THE HOME.
AND SO THE ONLY THING THAT HOLDS IT UP IS THE CITY'S DOWN PAYMENT ASSISTANCE GROWTH PROCESS, WHICH CAN BE TWO TO THREE MONTHS.
UH, BUT WE ARE ASSURED THAT WE CAN BUILD THE HOMES AND SELL 'EM WITHIN THE TWO YEAR TIMEFRAME.
SO THIS IS A SECOND LIEN LONG.
SO, SO IT WOULD BE A SECOND LIEN, SO YOU'D HAVE TO SUBORDINATE TO SENIOR DEBT.
UM, YOU'D ALSO HAVE TO PROVIDE, UH, SOME SORT OF LIEN RELEASE.
SO WHEN YOU THINK ABOUT ADMINISTRATIVE BURDEN FROM YOU ALL'S COMMITTEE CORPORATION, UH, OBVIOUSLY WE WOULD NEED SOME SORT OF, UH, LIEN RELEASE AT THE SALE.
RIGHT? SO COLLATERAL RELEASE, WHAT ABOUT, WHAT, WHAT ABOUT A RECOGNITION AGREEMENT WITH THE SENIOR LENDER? UM, SO SUBORDINATE AGREEMENT.
SO THOSE ARE THE TWO THINGS THAT I'VE MENTIONED.
LIKE A SUBORDINATION AGREEMENT IS A SUBORDINATION AGREEMENT AND THEN A LIEN, UH, RELEASE.
YEAH, I MEAN, I'M, I'M, I'M THINKING, AND THIS IS, YOU KNOW, MAYBE FOR DHFC COUNCIL MEAN THESE MIU BE OUT LINE AND NEED FLOW INTO CREDITOR.
SO OUR POSITION IS PROTECTED IN THE EVENT OF DEFAULT.
BECAUSE UNDER TEXAS LAW AS THE SECOND LIEN LENDER, WE WOULDN'T BE ENTITLED TO NOTICE OF DEFAULT, FOR EXAMPLE.
SO THAT NEEDS TO BE IN A SEPARATE DOCUMENT.
WELL, AND AGAIN, WITHIN THE CHECKLIST YOU ARE GONNA SUPPLY, ARE YOU USING THIS AS A BASIS TO GO SECURE? THE SECOND,
[00:25:01]
THE PRIMARY NOTE? UM, YOU MEAN THE MOU, THIS MOU THE FIRST LIEN.DO YOU NEED THIS IN PLACE TO BE ABLE TO GO TO? YES.
THEN WE DO PROBABLY NEED SOME OF THESE THINGS, BUT EVEN THOUGH IT IS PROVIDED IN THE CHECKLIST, YOU KNOW, IT'S A LITTLE BIT OF A CHICKEN AND EGG PROBLEM.
I MEAN, THAT'S THE FIRST, THESE ARE GOOD QUESTIONS.
THIS IS THE FIRST TIME WE'VE DONE THIS, SO THIS IS A GOOD THING TO FLUSH OUT.
IT IS MAYBE MORE A QUESTION FOR AARON.
I JUST THOUGHT ABOUT LIKE THE ACTUAL SERVICING OF THIS LOAN, LIKE THE GROUP THAT'S ISSUING THE STATEMENTS, TAKING THE CHECKS, JUST DOING THAT DAY TO DAY AND MAINTAIN A LOAN.
DO WE KNOW HOW THAT'S GONNA WELL, WE'RE ONLY GONNA HAVE ONE PAYMENT.
WE'RE NOT ACTUALLY MAKING THE LOAN TO THE HOMEOWNER.
BUT I, I UNDERSTAND THAT IT'S GONNA BE ONCE A MONTH INTEREST PAYMENTS, LIKE INTEREST PAYMENTS ZERO, BUT YEAH.
BUT IT STILL DOES NEED, YOU'RE RIGHT.
I MEAN, THERE STILL NEEDS TO BE 45 CHECKS PROCESSED AND WE DON'T KNOW.
AND THERE IS SERVICING OF THE LOAN.
IT'S OBVIOUSLY GONNA BE LOW MAINTENANCE, BUT WE ARE THINKING ABOUT DOING THIS IN OTHER, THE THE WAY TO DO IT WOULD BE TO ATTACH TO WHAT, WHAT THE SERVICE OF THE INSTRUCTION YEAH.
IT'S GONNA, THEY COULD SEND THE PAYMENTS TO US AND THEN WE JUST RUN IT THROUGH OUR ACCOUNT AND THEY CAN CREDIT IT.
TYPICALLY WHAT HAPPENS, THE TITLE WOULD SEND PAYMENT TO, UH, THE SECOND, UH, HOLDER, LIKE, LIKE THEY DO.
OH, UPON CLOSING OF THE RIGHT, RIGHT.
COMMENCE ONCE WE'VE SOLD A HOUSE.
KIND OF LIKE WE'RE LIKE AN HOA, YOU KNOW, THAT CLOSING, THIS IS A LIEN RELATED STATE.
IT'S JUST A LINE ITEM IN THE HUD STATEMENT.
I'M SORRY, IS THIS WORKING LIKE A CONSTRUCTION LOAN TOO, WHERE THERE'S DRAWS IT'S JUST YOU'RE GETTING THE LOAN, BOOM.
AND THEN YOU PAY OFF ONCE THE HOMES START PAY IT DOWN, YOU ARE USING OUR FUNDS PRIMARILY FOR INFRASTRUCTURE.
SO YOU'RE USING OUR FUNDS PRIMARILY FOR INFRASTRUCTURE? YES, ABSOLUTELY.
ALL THE VERTICAL CONSTRUCTION IS GONNA BE THE, THAT'S THE SENIOR SENIOR DEBT.
UM, AND ESSENTIALLY WHAT WILL HAPPEN IS, UH, WE'LL RECEIVE THE FUNDS AND WE WILL SEND THEM DIRECTLY TO OUR INFRASTRUCTURE DEVELOPER.
UM, AND, UH, AGAIN, WE'LL BE PAID OFF THAT CLOSING.
UM, IN OTHER SCENARIOS, YOU ANTICIPATE CLOSING THIS LOAN AND YOUR SENIOR LOAN SIMULTANEOUSLY? OR HOW IS THAT GONNA BE OFFSET? PROBABLY NOT.
UM, CAN YOU NOT EFFECTUATE THAT LOAN UNTIL YOU HAVE SITE READY INFRASTRUCTURE? LOTS.
YEAH, WE'RE GOING FIRST, BUT WE'RE PAYING BEING PAID SECOND.
WHICH I, I MEAN, I UNDERSTAND WHAT THIS IS.
WHO ELSE WOULD MAKE THAT ACCOUNT? WELL, NOT HERE TO BE CHIP, I'M IN SUPPORT.
NO, WE'RE JUST TRYING TO, WE'RE TRYING TO SET THE TEMPLATE AND WE WOULD HOPE THAT THIS CREATES A MODEL.
WE ALREADY HAVE A GUIDANCE LINE OF CREDIT THROUGH BENCHMARK BANK, UM, AND THEY HAVE BEEN EXTREMELY FLEXIBLE WITH WORKING WITH THE HOUSING DEPARTMENT AND CITY ATTORNEY'S OFFICE WHEN IT RELATES TO LEASE SUBORDINATIONS AND LEAVE RELEASES.
AND SO WE WILL MORE THAN LIKELY USE THAT SAME GUIDANCE LINE.
UM, AND SO ONCE THIS MOU IS FINALIZED, WE'LL SEND IT OVER TO THEIR GENERAL COUNSEL, UM, AND SEE IF THERE'S ANY CHANGES THAT NEED TO BE MADE.
MR. ARMSTRONG, CAN YOU, CAN YOU TELL ME A LITTLE BIT MORE ABOUT THE RESTRICTIVE COVENANTS AND EXACTLY HOW THOSE, UM, ARE MAINTAINED ONCE THE PROPERTY IS COMPLETED? ONCE YOU HAVE INVENTORY ON THE GROUND READY TO BE SOLD, HOW ARE YOU PREVENTING INDIVIDUALS WHO WANT TO PAY MARKET RATE OR HAVE THE ABILITY TO PAY MARKET RATE FROM BUYING ONE OF THOSE PROPERTIES? YEAH, NO, GREAT, GREAT QUESTION.
UM, MORE THAN LIKELY, YOU KNOW, RESTRICTED COVENANTS RIGHT FROM THE START, RIGHT? RIGHT.
WELL, THE, THE IDEA IS, IS THAT SECONDLY, UH, WE'LL HAVE THESE RESTRICTIONS, UH, THAT RELATE TO THE A MI.
SO CERTAIN AMOUNT OF UNITS WOULD HAVE TO BE THIS CERTAIN, UH, INCOME BAN, BUT MORE THAN LIKELY, IF THEY'RE GETTING DHA, THEIR, THEIR RESTRICTIVE COVENANTS ARE GONNA BE SUPERSEDE WHATEVER IS THREE APARTMENT MU.
AND ESSENTIALLY THOSE ARE FIVE YEAR, UH, D RESTRICTIONS SO THAT YOU'RE NOT ONLY FIVE DMI, BUT YOU ARE RESTRICTED TO, UH, YOU SELL THAT PROPERTY WITHIN THE AFFORDABILITY PERIOD.
UM, THEN YOU WOULD ESSENTIALLY HAVE TO PAY BACK A CERTAIN AMOUNT OF FUNDING TO THE CITY.
SO THAT'S KIND OF HOW WE, WE FORESEE IT WORKING.
UM, WE ARE DISCUSSING INTERNALLY WHAT WE WOULD LOOK LIKE TO PUT ADDITIONAL, UM, FEE RESTRICTIONS ONTO THE PROPERTY AS FAR AS BOH, BECAUSE WE HONESTLY DON'T BELIEVE FIVE YEARS IS LONG ENOUGH.
UM, MOST OF OUR HOME BUYERS WALK IN WITH ABOUT A HUNDRED THOUSAND DOLLARS IN EQUITY.
[00:30:01]
A, THAT'S REAL WEALTH, RIGHT? UM, THAT'S ALMOST LIKE WINNING THE LOTTERY.WEST DALLAS, THEY'RE WALKING IN WITH ABOUT $200,000 IN EQUITY.
WE'VE BEEN DISCUSSING INTERNALLY, HOW CAN WE EXTEND THAT TO ABOUT 10 YEARS, IS WHAT WE FEEL MORE COMFORTABLE WITH TO ASSURE LONG TERM AFFORDABILITY.
YET THERE, I THINK THERE'S STILL A LITTLE, FOR ME, I THINK I STILL HAVE A LITTLE QUESTION.
SO IF, IF YOU, IF THE BUYERS ARE WALKING IN, CALL IT A HUNDRED THOUSAND DOLLARS EQUITY, AND LET'S SAY FOR INSTANCE SOMEONE SAYS, YOU KNOW WHAT? I CAN BUY THAT PROPERTY TODAY AND I'M WILLING TO PAY WHATEVER THE FEE IS I HAD TO PAY BACK.
IS IT THE COUNTY? IS IT THE, THE COUNTY SUBSIDY? WHAT WOULD HAVE TO BE REPAID? UM, IF SOMEONE IS NOT A QUALIFYING CANDIDATE TO MEET WHATEVER THE, UH, THE DEED RESTRICTION INCOMES ARE? YEAH.
SO IT DEPENDS ON, UH, THE, THE SENIOR SUBSIDY, IF THAT WAS A TERM ON THE MM-HMM.
IT'S NEHA BECAUSE IT'S FEDERAL MONEY THAT WILL SUPERSEDE ANY OTHER DEED RESTRICTIONS, RIGHT? SO IF IT'S FROM THE HOUSING DEPARTMENT, THEY NEED DOWN PAYMENT ASSISTANCE THAT WILL COME FIRST AND THAT HAS A FIVE.
UM, IF THERE IS NO DHA, THEN IT WOULD FALL TO BOA'S DEED RESTRICTION, WHICH WOULD BE 10 YEARS, IS WHAT WE'RE INTERNALLY DISCUSSING.
UM, BUT IN TERMS OF WHAT WOULD BE PAID BACK, IT DEPENDS ON THE SUBSIDY.
UM, IF THEY TAKE DOWN PAYMENT ASSISTANCE, AGAIN, THAT'S THROUGH THE CITY OF DALLAS.
IF THEY DON'T TAKE DOWN PAYMENT ASSISTANCE, WHICH WE ENCOURAGE ALL OF OUR BUYERS TO DO SO.
UM, BUT IF THEY DON'T TAKE IT, UH, THERE ESSENTIALLY WOULD BE ANY, UH, WHAT WE WOULD CALL RECAPTURE PENALTY ON, ON THE PROPERTY.
UM, THEY WOULD BE ABLE TO, TO, TO, TO SELL IT.
UM, AND IT WOULD FALL TO OUR INTERNAL RESTRICTION.
AND WE HAVEN'T REALLY DECIDED WHAT THAT WOULD LOOK LIKE, UH, IF THERE WOULD BE ANY REPAYMENT OR IF IT'S IS IS IT JUST AN AFFORDABILITY THING CONTINUE? YEAH, IT ULTIMATELY, WHAT I'M TRYING TO DO IS FIGURE OUT, LET'S SAY FOR INSTANCE, IF IT'S PRIVATE EQUITY OR SOME OTHER INVESTOR THAT SEES SOME ARBITRAGE THERE AND IS WILLING TO GO AHEAD AND BUY IT, KNOWING THAT WHATEVER THEY HAVE TO PAY IS LESS THAN WHATEVER THE EQUITY OR WHERE THEY WOULD BE IN FROM AN EQUITY POSITION.
AND THEY, THEY JUST LIKE, I, I'LL BUY 'EM ALL OR BUY TWO OF 'EM, OR THREE OF 'EM, OR FOUR OF 'EM, FIVE OF THEM.
AND SO WE WILL HAVE GIVEN THE MONEY AND WE WOULDN'T QUITE HAVE HIT OUR TARGET AS IT RELATES TO MAKING SURE THAT WE'RE SUPPORTING THE AFFORDABILITY.
AND SO I'M JUST TRYING TO FIGURE OUT HOW DO WE PREVENT THAT FROM HAPPENING? YEAH.
YOU KNOW, ONE THING THAT WE DO REQUIRE FROM OUR HOME BUYERS IS THAT IT, THAT IT IS, UM, THEIR PRIMARY RESIDENT, THAT IT IS THEIR HOMESTEAD.
UM, WE ASK THAT THEY FILE THAT.
AND AGAIN, WE'RE DISCUSSING INTERNALLY WHAT THAT LOOKS LIKE, BUT 80% OF OUR BUYERS ARE FIRST TIME HOME BUYERS.
UM, AND SO I GUESS TO ANSWER YOUR QUESTION, IT'S MORE OF AN INTERNAL CONTROL, UM, THAT COULD PLAY OUT INTO A SPEED RESTRICTION THAT BOH PUTS ON THE PROPERTY IN THE ABSENCE OF DOWN PAYMENT ASSISTANCE TO THE CITY.
NOW, IF THIS BODY DECIDES THAT THEY WOULD LIKE TO PUT AN ADDITIONAL DEEP RESTRICTION, I MEAN, THAT'S TOTALLY UP TO YOU ALL, UM, TO EXTEND AFFORDABILITY.
UM, BUT, UH, THAT'S KIND OF THE WAY THAT WE'RE LOOKING AT SOLVING THAT OPEN SET SUGGESTIONS OR ANY THOUGHTS.
UM, YOU'VE DONE THIS PROJECT, WE'RE DOING THIS PROJECT IN FARMER'S BRANCH, AND IT'S THE CITY THAT PUTS THE DEED RESTRICTIONS AND IT IS A RECAPTURE PROVISION.
YEAH, THAT'S WHAT I WAS THINKING.
YOU COULD DO A RECAPTURE WHERE THEY HAVE TO SELL IT BACK, SELL TO YOU FOR X NUMBER OF DOLLARS.
OR RESELL THAT RESTRICTS, UM, THAT BASICALLY RESTRICTS THE RESELL TO INCOME TARGETED BUYERS.
I THINK THAT'S SOMETHING THAT IS VERY WELL WITHIN YOU ALL'S WHEELHOUSE TO DO WITHIN YOUR MOU.
I'M WILLING TO MAKE A MOTION IF EVERYONE
HAS ANSWER ALL THEIR QUESTIONS.
CAN YOU, UM, I KNOW YOU COVERED THIS BEFORE, AND MAYBE IT'S UP HERE RIGHT NOW, I JUST CAN'T READ IT.
SO WE HAVE, UM, 10 UNITS, WHICH WOULD BE THE SMALLEST FLOOR PLAN.
AND BECAUSE OF THE LOT SIZE, THESE ARE TYPICALLY 40 BY 125 LOT SIZE.
UM, AND SO, UH, THEY'RE TYPICALLY TWO STORY, BUT, UH, WE HAVE THE 15, 80 15 80 SQUARE FEET MM-HMM
UM, IT'S TYPICALLY THREE BATH, THREE BEDROOM, TWO BATH, BUT THAT'S 10, 10 UNITS AND THAT IS FROM 60 TO 80%.
WE HAVE, UH, 25 UNITS, WHICH ARE BETWEEN 1836 AND 1995 SQUARE FEET.
AND THOSE ARE FOR HOUSEHOLDS BETWEEN
[00:35:01]
80% AND A HUNDRED PERCENT OF THE A MI MM-HMMAND THEN 10 UNITS WOULD BE A HUNDRED, UH, BASICALLY A HUNDRED PERCENT OF A MI TO 120% OF A MI.
AND THE NUMBER OF BEDROOMS IN EACH, ARE THEY, YOU, YOU MENTIONED THE FIRST ONE YOU WENT THROUGH WAS THREE BEDROOM.
ARE THE OTHERS ALL THREE BEDROOMS OR, UM, SO, UH, I HIGHER AND SQUARE FOOTAGE THAT YOU GET, THE MORE BEDROOMS, SO THE FRI WE CALL IT A FRISCO.
SO ESSENTIALLY 20 OF THE HOMES, NEARLY HALF WILL BE FOUR BEDROOMS. TWO AND A HALF BACK.
IT'S THE INTERESTING REASON I'M ASKING IS, AND THEN I'M GUILTY PROBABLY LIKE LOT PEOPLE CAN SEE BIAS, BUT I WAS TALKING TO FORMER COMMISSIONER LAURIE BLAIR LAST NIGHT.
SHE WAS TALKING ABOUT RECAPTURE THE NEED AND SITTING DOWN MORE LARGER HOMES WITH MORE, YOU KNOW, BEDROOMS LIKE THREE AND FOUR BEDROOMS. AND SO MOST OF THE STUFF I THINK WE'RE DOING, THESE MULTIFAMILY DEALS ARE SMALLER.
SO I THINK, YOU KNOW, IN ADDITION TO THE FACT THIS IS SINGLE FAMILY ATTACHED PRODUCT, THE FACT THAT WE'RE BRINGING MORE LARGER HOMES THAT CAN ACCOMMODATE DIFFERENT, YOU KNOW, LARGER FAMILY IS A GREAT, I THINK THEY HAVE TWO CAR GARAGE.
UH, USUALLY MOST OF THAT IS 19 FOOT GARAGE AND SIDE BACK.
WHAT WE'VE LEARNED ON SOME OF THE, SOME OF THE ELEVATIONS OF THE PROJECT IN OUR LATE JUNE, UH, DEVELOPMENT IS WE KIND OF REVAMP, WE COULD GO TO THE FIRST PAGE OR SEE AN EXAMPLE OF WHAT SOME OF THESE HOMES LOOK LIKE.
WE WERE GOING THROUGH FLAT FOR LATE JUNE, UH, CPC COMMISSIONERS WANTED TO ADJUST THE ELEVATION OF THE HOME.
SO ESSENTIALLY ASSURING THAT THERE WAS LIMITED SLAGE BETWEEN THE FRONT DOOR AND THE, THE FRONT OF THE GARAGE SO THAT WE'RE NOT CREATING A COMMUNITY THAT LOOKS LIKE NOW HOUSES.
SO WE ARE CHRIS LEWIS, OUR CHIEF REAL ESTATE DEVELOPMENT.
SO WE'RE WORKING THROUGH WAYS THAT WE CAN JUST IMPROVE THIS ELEVATION, BUT BRING THAT FRONT DOOR UP A LITTLE BIT.
SO YOU'RE NOT LOOKING AT A COMMUNITY OF GARAGES WITH PUMP AND CHECK, JUST BECAUSE I DON'T HAVE THE, UH, PACKAGE IN FRONT BE, DO WE HAVE A PERFORM ON A FUEL, YOU KNOW, KIND OF COSTS AND SALE PRICE AND PROFITS? YEAH.
WE HAVE A, A BASELINE, LIKE A, A BIRD'S EYE VIEW OF COST, AND I THINK THAT'S ON PAGE RIGHT THERE.
AND IT, IT WAS DATED AS OF NOVEMBER.
I DON'T KNOW IF THAT'S CHANGED ANY OR YEAH, WE, WE JUST UPDATED IT.
I WAS DELAYED IN GIVING THE PACKAGE TO ALL, UH, ADMIN STAFF, BUT HAPPY TO CIRCULATE THE, UM, AND PROVIDE A FULL PERFORM OF NECESSITY.
I MEAN, MY ONLY SENSITIVITY IS GONNA BE AROUND THIS WHEN YOU'RE ASKING FOR A ZERO INTEREST LOAN TO THE EXTENT THAT THESE PRICES ARE FIXED AND PROFITS UNDER DISCLOSED, YOU KNOW, I CAN GET MY HEAD AROUND THAT TO THE EXTENT OF THIS MOVEMENT AND MORE P AND L CREATED AND CITY SHOULD CARE FAIR RETURN.
WELL, YEAH, NO, I, I THINK THAT, I THINK WE HAD CONVERSATIONS YESTERDAY ABOUT PUTTING SALES PRICES IN THE MOU.
UM, I DON'T THINK THAT'S SMART MOVE BECAUSE IT KIND OF DIDN'T HOLD US TO YEAH.
PRICE POINT THAT MAY NOT WORK, UM, IN THE NEXT TWO YEARS.
AND RIGHT NOW IT'S WORDED AS NOT TO EXCEED.
SO YOU'RE SAYING MAYBE IT WOULD EXCEED YEAH, THAT'S, THAT'S WHY WE, WE WOULD ELECT TO, UH, CAP IT TO, TO THE A MII THINK, I THINK YOU ALL'S GENERAL COUNSEL IS WORKING ON REVISING THAT.
UM, BUT DEFINITELY CAN'T
I TEND TO AGREE TOO, JUST 'CAUSE FOR RESTRICTING AMIS AND PICK QUALIFIED BUYERS, THEN IN TURN THEY'LL HAVE TO UNDERWRITE, QUALIFY FOR A LOAN THAT WILL RESTRICT THEM TO A CERTAIN PRICE POINT AS WELL.
SO WITH THAT AT BOTTOM IN THE TOP, I I'M NOT WORRIED ABOUT THAT.
IT'S JUST LIKE RAW DOLLARS OF P AND L THAT THE DEVELOPER'S MAKING.
YOU KNOW, IF THERE'S MONEY THERE.
WELL, AND I THINK BEFORE WE CLOSE ON THE FINAL DOCUMENTS, WE'LL HAVE A BRIEF REVIEW OF THE PROFORMA AND EVERYONE WILL GET A FREE REFRESH OF WHAT, WHAT THE MARKET LOOKS LIKE AT THAT POINT.
WITH THAT BEING SAID, UM, I MOVE TO APPROVE THE ITEM WITH A RIGHT OF RECAPTURE, UM, ADDED IN TO BE WORKED OUT WITH OUR ATTORNEY,
[00:40:01]
YOU KNOW, IF THEY FAILED TO COMPLY WITH THE DEED RESTRICTIONS.LIKE THAT WOULD BE A WHAT WOULD HAPPEN.
I WOULD ALSO LIKE TO CLARIFY THAT THE SENIOR INSTRUCTION LENDER RECOGNIZES CITY'S LOANS WHEN COMPETITOR IN THE NYU.
I WILL GLADLY ACCEPT THAT AS AN AMENDED
SO I HAVE A MOTION BY VICE PRESIDENT GARCIA.
DO I HAVE A SECOND? SECOND SECRETARY PAGE.
UM, DIRECTOR ALLEN IN FAVOR, DIRECTOR NAMBIAR IN FAVOR AS WELL.
DIRECTOR MARSHALL C SANDER, UH, TREASURER PHARAOH ABSTAIN.
UM, DIRECTOR COLLINS IN FAVOR, DIRECTOR HINTON APPROVED.
WAIT, WHAT WAS THAT ONE? APPROVED? APPROVE.
UH, VICE PRESIDENT GARCIA IN FAVOR, DIRECTOR ELLIS IN FAVOR? I'M IN FAVOR, UH, DIRECTOR MOORE.
IN FAVOR, DIRECTOR PAIGE IN FAVOR AND DIRECTOR ZA IN FAVOR.
IT'S TAKEN, IT'S BEEN A LONG ROAD FOR US TO FIND A WAY FOR US TO ASSIST IN THE, THE DEVELOPMENT OF SOME SINGLE FAMILY HOMES.
SO OTHER THAN WE HAVE CERTAINLY ASSISTED THROUGH THE T-D-H-C-A, BUT, BUT FOR US, JUST, UH, AS, AS OUR LITTLE ENTITY TO BE ABLE TO, UM, ASSIST WITH THAT I THINK IS, UH, REALLY EXCITING.
THAT WAS THE VERY FIRST BOARD MEETING I EVER YEAH, EXACTLY.
WE HAVE FUNDED A LOT OF, UH, LOANS FOR SINGLE FAMILY THROUGH THE T-D-H-C-A CALL BRAD KY.
YEAH, I KNOW THAT'S, YEAH, WE IS THE ONE THAT SAID IT.
UM, OKAY, ITEM NUMBER NINE, DISCUSSION AND APPROVAL OF THE CORPORATION'S 2025 BUDGET.
UM, SO I DON'T KNOW, UM, ARE YOU GONNA DO IT, UH, MANAGER QUINTO OR OUR TREASURER? TATIANA? I GUESS YOU'LL JUST CHIME IN.
THERE WERE A FEW, UM, ADJUSTMENTS FROM OUR MEETING IN JANUARY.
UM, MOSTLY EVERYTHING ELSE LOOKS THE SAME.
YOU JUST LINED OUT A COUPLE ITEMS FOR STAFFING COSTS AND JUST FINE TUNE SOME OF THE REVENUE PROJECTIONS.
UM, TATIANA, I DON'T KNOW IF HE'S NOTICED ANYTHING LIKE A PARTICULAR TO GET 51 POINT OUT EVERYONE.
YEAH, ACTUALLY WE DID SOMETHING CAME UP IN THE EXECUTIVE SESSION.
HOW DID WE COME UP WITH THE SALARIES FOR THE STAFF? THAT IS NOT, THOSE ARE JUST THE PURE SALARY COSTS.
UM, SO WE JUST ARE ACCOUNTING FOR THE ONE OR THE TWO, I GUESS.
CURRENT, UH, STAFF POSSIBLY AND, AND JACKIE THAT ARE ASSIGNED TO US.
WITH FLEXIBILITY, THE ENTIRE COUPLE MORE STAFF FOR RDS THIS YEAR.
SO THAT'S THE PURE COST FROM THE CITY THAT WE JUST TRANSFERRED OVER TO OUR BUDGET.
SO YOU HAVEN'T BUILT IN ANYTHING THAT YOU THINK MIGHT BE AN ADDITIONAL STAFF ADDITIONAL COST WHEN WE BRING IN STAFF.
I BUILT IN SOME, SOME ALLOWANCE FOR HR BENEFITS US AS WELL AS, UM, YOU KNOW, ANY ANYTIME MARKET ADJUSTMENT ON SALARY AS WELL AS THE UH, CELL PHONE AND HOME OFFICE.
THE CELL PHONE, THE HOME OFFICE COSTS THE INTERNET.
BUT YOUR ASSUMPTION FOR THIS BUDGET IS THAT WE WOULD HAVE AN ADDITIONAL PERSON DIRECTLY EMPLOYED BY THE HC AS OF, LIKE I SAY,
UM, WE HAVE TWO POSITIONS ARE BYLAWS.
PLUS AN ADDITIONAL, NOT FLOATED SOME IDEAS FOR ADDITIONAL STAFFING.
SO THIS YEAH, THE, THE BUDGET SAYS WE'RE, SEE, SORRY, VERY SMALL LETTERS.
ONE MORE TO BE HIRED IF IT'S LIKE AN ADMIN NOT LINE THAT UP.
SO, SO, BUT YOU WERE WORKING ON THE ASSUMPTION THAT WORKING ON ASSUMPTION, WE WILL NOT HAVE THE CITY STAFFING AS OF RIGHT.
[00:45:01]
OF POINT.DIRECTOR ALICE, DID YOU HAVE A QUESTION? I SAY SOME STUPID
WELL I KNOW, BUT DO THEY VIEW THAT AS A REQUIREMENT IN OUR BYLAWS THAT THERE BE A CITY EMPLOYEE, A LIAISON, THERE'S NO REQUIREMENT, IT'S AN OPTION.
WELL, THEY CAN APPOINT A LIAISON, BUT THAT'S, THAT'S NOT US FIREWALL.
BUT ALSO, BUT THEN WE PAY FOR IT.
THE BYLAWS SAY IT'S SUBJECT, ANY CITY POSITIONS ARE SUBJECT TO REIMBURSEMENT FROM OUR BUDGET.
SO I THINK DIRECTOR MOORE, THAT YOU'RE CORRECT.
I'LL, I CAN SAY
IT WOULD ONLY BE FOR THE TIMING CURRENT.
WE WOULD GET BILLED FOR ANYTHING THEY DO FOR US.
BUT ARE THEY GOING TO 100% POINT SOMEBODY THAT WE NEED TO ACCOMMODATE IN OUR BUDGET FOR REIMBURSEMENT? I MEAN, I CAN'T SPEAK FOR THE CITY HONESTLY, BUT I THINK IT'S BEEN REQUESTED OF MARC THAT WE EXPLORE THE OPTION OF JUST HAVING OUR OWN THAT DEPENDING FOR HOW IT LINES OUT THE REST OF THE YEAR, WE'LL SEE.
BUT, UH, WE WANNA BE PREPARED.
SO I I IN FAVOR ONBOARDING EVERYBODY.
I JUST KNOW THAT THE BYLAWS ARE CONTENTIOUS AND I FELT THAT THEY THOUGHT THAT THERE WAS A MANDATORY POSITION WHEN WE, WE COLLECTIVELY HIRED YOU AS GENERAL MANAGER AT WA FROM CITY.
DID THEY APPOINT LIAISON? SAID JACKIE THE LIAISON RIGHT NOW OBJECT.
I DON'T KNOW WHAT THE ADMINISTRATION, WHO ARE YOU JACKIE? IT IS, YOU'RE RIGHT.
I MEAN, TO RYAN'S POINT, THERE IS A COURT, UH, PROVISION FOR THEM TO HAVE A LIAISON.
AND THEN IF WE HIRE JACKIE, BECOME SOMEONE ELSE, WE'RE GETTING, SORRY JACKIE, WE WE'RE GETTING BILLED FOR YOUR TIME HERE, RIGHT? WHAT WAS THAT GUY NAME? DIDN'T THEY APPOINT US A LIAISON LAST YEAR? NO, WE ALL MET WITH HIM.
THAT WAS BACK WHEN WE WERE TRYING THAT WAS DARWIN, RIGHT? THAT WAS DARWIN, YEAH.
THEY WERE TRYING TO MAKE HIM BE, THEY'RE TRYING BEFORE, UM, YOU KNOW, THAT PORT D LEFT AND ALL THAT STUFF.
THAT'S NOT ASK, THAT WAS NOT FUN FOR ANYONE.
I GUESS MAYBE WHAT I WOULD SUMMARIZE US TO SAY IS, AND TELL ME IF I'M WRONG, THAT UM, IN THE EVENT AS THINGS PROGRESS WITH GETTING ALL OF OUR, UH, DIRECT EMPLOYEES, UH, HIRED DIRECTLY BY US, IF IT TURNS OUT THAT WE NEED TO MAKE AN AMENDMENT TO THE BUDGET, THEN I THINK THAT, UH, YEAH, AND THAT'S OUR GENERAL MANAGER WOULD BRING THAT BEFORE THE BOARD, YOU KNOW, ONCE WE HAVE A BETTER FEELING FOR WHAT THOSE COSTS MIGHT BE.
YEAH, I WOULD, I WOULD REMIND US YOU HAVE, RIGHT? I MEAN, WHAT ELSE CAN WE DO YOU HAVE THE RIGHT TO ADVISE YOUR BUDGET AT ANY TIME? SO IF WE NEED A MAJOR ADJUSTMENT, WE'LL MAKE SURE THAT EVERYONE IS APPRISED OF WHAT NEEDS TO BE DONE.
BUT IN THIS BUDGET IS US
PROJECT MANAGER, PROJECT MANAGER, AND A PROJECT.
SO WE CURRENTLY ONLY HAVE THREE.
BUT THEN WE ALSO HAVE SOMETHING ALLOCATED IN CASE THE CITY DECIDE, HEY, LET'S HAVE A LIAISON, LET'S DO IT.
NO, NO, WE DON'T HAVE SO IF THEY DO IT, THEN THAT WILL HAVE TO AMEND EXACTLY.
OR IF SOME OF, OR IF IT TURNS OUT THAT SOME OF THESE COSTS JUST HAVE NOT BEEN ESTIMATED RIGHT.
YOU KNOW, UH, EXACTLY WHERE THEY'RE GONNA FALL, THEN UH, IT WOULD BE AN OBLIGATION OF OUR GENERAL MANAGER TO COME BACK AND, AND WE WOULD VOTE ON AN AMENDMENT TO THE BUDGET.
SO I WILL, I WILL SAY WE ENGAGED AN HR FIRM,
LOOK, ANCILLARY SALARY BENEFIT COST WOULD BE, AND WE CAN BE BETTER FORECASTING GOING FORWARD.
WE'RE WORKING AT GETTING ALL THIS SWITCHED OVER.
IT'S NOT AS EASY AS IT DID YOU WANT SEE, IT MIGHT SEE.
[00:50:02]
THAT WAS NOT AN ACTION.OH YEAH, THAT IS AN ACTION ITEM.
SO I NEED A MOTION AND A SECOND TO APPROVE THE BUDGET MOTION TO
AND DO I HAVE A SECOND, SECOND SIDE WAS DAN ELLIS.
VICE PRESIDENT GARCIA APPROVE.
DIRECTOR MOORE, DIRECTOR, UH, SECRETARY PAGE APPROVE.
UM, OKAY, SO NOW, UH, ITEM NUMBER 10, REVIEW AND DISCUSSION OF OUR TREASURER DHFC TREASURER'S REPORT FOR THE ONE MONTH PERIOD ENDING ON JANUARY 31ST, 2025.
AND I DON'T KNOW IF SHANNON IS ON SHANNON, I JUST THANK YOU.
SO, UM, EVEN THOUGH IT'S ONLY THIS FIRST MONTH OF 2025 WE'RE REPORTING ON, THIS WAS CASHFLOW WISE A GREAT MONTH FOR Y'ALL.
UM, YOU HAD CASH RECEIPTS, UM, THAT, UH, RESULTED IN A NET INCREASE IN CASH OF OVER $769,000 DURING THE MONTH OF JANUARY.
PRIMARILY THOSE COME FROM THE FIRST OF YOUR REALLY LARGE ANNUAL LEASE PAYMENTS FROM BOTH ACCESS KESSLER AND DOMAIN AT MIDTOWN THAT CAME IN.
THAT'LL BE, UH, THAT WE'RE DUE ON JANUARY, IN JANUARY OF 2025.
UM, I, I HAD A LITTLE INTERESTING FACT DOWN AT THE BOTTOM OF THE TREASURER'S REPORT BECAUSE I KNOW THAT IT'S BEEN SINCE I BELIEVE MID 2022 THAT Y'ALL STARTED TO PUT INTO THE LEASE AGREEMENTS WITH THE PARTNERSHIPS THAT, UM, IN SOME OF THESE THAT THERE WILL BE ANNUAL RENT PAYMENTS TYPICALLY THAT, UH, INCREASE ANNUALLY BY 3%.
SO THIS IS THE FIRST OF THESE KIND OF LARGER ANNUAL LEASE PAYMENTS.
YOU'VE HAD SOME SMALLER ONES FOR LIKE A HUNDRED DOLLARS A YEAR THAT WERE OUT THERE.
THESE ARE THE FIRST SUBSTANTIAL ONES THAT Y'ALL HAVE ENTERED INTO.
AND I JUST WANTED TO CALL THIS TO YOUR ATTENTION AT THIS POINT, UM, WITH THE CONSERVATIVE SIDE OF ME ALSO HAVING TO TELL YOU THAT OF COURSE, YOU KNOW, THIS IS A GREAT, YOU KNOW, FIRST, YOU KNOW, RECEIPTS FROM THESE TWO, WHICH ARE RECENT DEALS.
UH, BUT IN THE FUTURE, AND FOR ALL THE OTHER EXISTING ONES, ALL OF THESE ANNUAL, UH, RENT AMOUNTS ARE PAYABLE ONLY WHENEVER THE, UH, PARTNERSHIPS COMPLEXES ARE ACTUALLY OPERATIONAL.
SO THESE WILL BE SUBJECT TO NET CASH FLOW, BUT OF COURSE THEY WILL ACCUMULATE ANY AMOUNTS THAT HAVE BEEN EARNED EACH YEAR AND WILL BE PAYABLE WHEN NET CASH FLOW IS AVAILABLE.
SO, UH, THAT'S, OTHERWISE TO SAY THIS IS GONNA BE UNPREDICTABLE, DON'T THINK EVERY JANUARY YOU'RE GONNA GET ANOTHER, YOU KNOW, NEARLY $579,000 NECESSARILY.
YOU KNOW, UH, SO OTHER THAN THAT, THERE WERE CASH RECEIPTS FOR ANNUAL ISSUER FEES THAT CAME IN OF 80,000.
YOU HAD OVER $55,000 IN INTEREST INCOME.
AND THEN FROM THE T-D-H-C-A PROGRAM, UH, THERE WERE FEES EARNED OF 35,000.
SO YOU, FOR THE END OF JANUARY'S CASH AND CASH EQUIVALENCE BALANCE, JUST OVER $19 MILLION, YOUR INCOME AND EXPENSES, UH, RESULTED IN A NET CHANGE IN FINANCIAL POSITION OF $431,956.
SO A BUSY GOOD MONTH, EVEN THOUGH YOU DIDN'T HAVE A CLOSING.
AND I THINK WE DID HAVE A CLOSING IN FEBRUARY THAT DID, WHERE WE WERE THE BOND ISSUER.
SO THAT WILL BE A ISSUER FEE THAT WILL COME IN.
I JUST WANNA ADD ON TO SHANNON'S NOTE, LIKE THESE ARE, WE SWITCHED TO LEASE PAYMENTS SO I COULD BE A LITTLE MORE, BUT NOW
[00:55:01]
UP TO THE BOARD WE HAVE TO VET OUR PARTNERS AND MAKE SURE THAT THESE PEOPLE THAT WE'RE PARTNERING WITH ARE TRUSTED AND, AND GOOD OPERATORS, RIGHT? BECAUSE NOT EVERYONE'S THE SAME.I THINK THE ONES THAT WE HAVE ARE GOOD, BUT YOU KNOW, I, I JUST AM TRYING TO SORT YOU ALL TO KEEP DOING YOUR DUE DILIGENCE AND MAKING SURE THAT THE PEOPLE WE BRING THE PARTNERSHIP WITH US ARE, ARE WORTHWHILE AND SO FAR.
ANY OTHER QUESTIONS FOR SHANNON? WE APPRECIATE YOU SHANNON.
UM, OKAY, ITEM NUMBER 11, REVIEW AND DISCUSSION OF THE CORPORATIONS PIPELINE REPORT AS OF MARCH 11TH, 2025.
AND THERE WERE SOME CORRECTIONS ON HERE THAT RIGHT? MARCY JUST POINTED OUT THE, UM, PARADISE GARDENS WHERE WE ARE, THE ISSUER THAT CLOSED, I THINK IT WAS NOTED AS PENDING.
AND THEN TENISON LOFTS ALSO IS, I THINK COMING UP OUR NEXT CLOSING SHOULD BE THE RENT AT LUKE 12.
UM, WELL, OTHER THAN OK, ANDAL, OTHER THAN OK, YEAH,
I MEAN, NOT GUARANTEED, BUT THAT'S TRUE.
AND THEN SHORTLY AFTER, WE SHOULD BE MOVING INTO, UM, I THINK ONLINE ILLINOIS SHOULD BE CLOSING LATER THIS YEAR.
THE KEY STEEL, UM, AND THE LADY IN BUCKNER STATION DEAL, WE'LL BE SEEING THAT NOU NEXT MONTH AS WELL.
I'M NOT SURE I REMEMBER ABOUT THE HARTFORD LIVING, SO I THINK WE RAN INTO SOME COMPLICATIONS THAT THEY'RE, THEY'RE STILL GOING THROUGH IT.
THEY'RE TRYING TO LAYER ON HISTORIC TAX CREDITS, SO THAT'S COMPLICATING A LOT OF THE DOCUMENTATION BEHIND THE, UH, CONING OUT OF THE, UH, COMMERCIAL SPACE.
SO THEY'RE STILL TRYING TO KICK OFF THE GROUND.
BUT YOU MENTIONED THAT BEFORE.
SO IT'S IT BECAUSE RETAIL OVER A POWER CODE LIKE SHOULD NOT BE THAT COMMON.
IT'S UNDER, I THINK IT'S UNDER, YEAH.
SO, BUT IT, IF THEY MISSED THEIR WINDOW, BUT YOU'RE SAYING IT'S THE HISTORICAL TAX CREDIT, IT'S THE TAX CREDIT.
WELL, IT'S THE TAX CREDIT IN CONNECTION WITH THE CONDO.
IT'S HARD TO BUY FOR S IN THAT PROGRAM.
IT'S STILL TAX BASED, BUT DIFFERENT KIND OF RULE YOU BREAK IN HALF.
WE'RE NOT REALLY EXPERTS IN THAT, BUT WE WE'RE TRYING TO GET, SO IT WAS KIND OF THING, IT WAS LIKE YOU MENTIONED THE RETAIL ACCOUNT WAS LIKE, WE CAN'T RULE OUT DEAL WITH RETAIL, BUT YEAH, IF IT HAS THAT LAYER TO IT, THEN THAT'S OKAY.
AND THEN I DON'T KNOW IF BRAXTON IS ON TO TELL US WHERE WE ARE ON ALLOCATIONS.
UM, SO WE, WE DO HAVE TWO ACTIVE RESERVATIONS THAT AARON ALREADY MENTIONED.
THE PALLADIUM BUCKNER STATION AND THE, UM, HIGHLINE ILLINOIS ARE, ARE ACTIVE RESERVATIONS.
UH, THE, THE NEXT DEALS IN LINE ARE, ARE LDG DEALS.
THE, I BELIEVE THE, UH, GATEWAY AT TRINITY FOREST RECEIVE NOTIFICATION THAT THEY HAVE, UH, VOLUME CAP AVAILABLE, UH, LAST WEEK.
UH, IT'S, IT'S MY UNDERSTANDING FROM LDG THAT THEY'LL BE, UM, WITHDRAWING THE APPLICATION AND REAPPLYING, THEY'RE JUST NOT QUITE READY, UH, UH, PERMITTING WISE TO MOVE FORWARD WITH THAT DEAL.
UM, THAT THAT'LL GO BACK TO THE END OF THE LINE.
UH, FOR, FOR, UH, FOR THE, UH, THE PAB APPLICATION.
UH, NEXT APP UP IS, IS LEGACY OF BELTLINE.
ANOTHER LDG DEAL THAT I WAS ALSO TOLD IS NOT QUITE READY IF THEY RECEIVE AN OFFER, UH, I BELIEVE PROBABLY BEFORE THE, THE BEGINNING OF THE SUMMER, THAT WILL LIKELY HAVE TO BE WITHDRAWN AND, AND MOVE, THEY'LL MOVE BACK TO THE END OF THE LINE.
SO THEY'RE, THEY'RE JUST A LITTLE BEHIND ON THEIR PERMITTING, UH, FOR A LOT OF THEIR DEALS, UH, THAT ARE, THEY'RE KIND OF PENDING.
THEY WERE HOPING TO GET LATER RESERVATIONS THAN EARLIER, BUT DUE TO OTHER APPLICATIONS IN FRONT OF THEM WITHDRAWING, IT'S KIND OF MOVED UP EVERYBODY'S TIMELINES A LITTLE BIT.
BUT I, I GUESS, UM, IS, DO YOU HAVE THE FEELING, BRAXTON, THAT, UH, THAT ANYONE WHO IS WANTING TO MOVE FORWARD WILL EVENTUALLY GET REACHED THIS TIME AROUND? I DON'T MEAN THIS TIME AROUND MEANING LIKE APRIL, BUT I MEAN MM-HMM
YEAH, I, I THINK THERE'S, WE'RE STILL EARLY ENOUGH IN THE P PROGRAM YEAR.
WE'RE, WE'RE ONLY INTO, YOU KNOW, MID-MARCH RIGHT NOW.
SO THERE'S STILL QUITE A FEW KIND OF, YOU KNOW, FUNDING DATES I WOULD SAY WITH THE, YOU KNOW, WHEN THE 150 DAY RESERVATION DATES KIND OF STARTS TO HIT WITH THE JANUARY RESERVATIONS, WE START TO SEE A FEW MORE WITHDRAWALS THERE.
AND THEN OF COURSE THERE'S ALWAYS THE, THE AUGUST COLLAPSE, IT HAS A PRETTY BIG FUNDING, UH, CYCLE THERE.
USUALLY I WOULD SAY AROUND TWO TO, TO $350 MILLION.
SO I, I STILL THINK WE'RE, WE'RE IN A DEMAND FOR THE PROGRAM WHERE I THINK MOST EVERYTHING THAT'S, THAT ISN'T IN LINE RIGHT NOW, SHOULD BE REACHED AT SOME POINT IN,
[01:00:01]
IN THE PROGRAM YEAR.UH, BUT I, I DO THINK, YOU KNOW, AGAIN, WITH THESE LDG DEALS, ESPECIALLY, YOU KNOW, GOING BACK TO THE END OF THE LINE, I, I DON'T THINK THEY'RE DONE FOR THE YEAR.
I THINK THEY'RE LIKELY SOMETHING THAT WOULD PROBABLY BE HIT CLOSER TO SEPTEMBER, MAYBE OCTOBER.
AND I, I WOULD NOTE THAT WE GOT ALL OF THESE LEG DEALS THROUGH COUNCIL WITH RONS, SO THAT HELPS.
IT'S JUST THE PERMITTING, YOU KNOW, CAN BE VERY VARIABLE.
AND SO THEY CAN'T GET THE FINANCING DONE UNTIL THE PERMITTING GETS DONE.
AND SO IT'S LIKE, ALL RIGHT, IF THEY START THE 180 DAY CLOCK AND THEN THE PERMITTING'S NOT DONE, THEN IT MESSES UP THE, THE TIME IS, I CAN'T CLOSE SIMPLIFY IT, BUT IS IT A DELAY IN SUBMITTING THEIR PERMITS OR RECEIVING APPROVALS? I KNOW IT'S PROCESS.
I KIND OF RELY ON THE DEVELOPER'S EXPERTISE THAT ITS OWN PROCESS.
SO I KNOW THAT THEY'VE NEVER WANNA WAIT, YOU KNOW, SO RIGHT.
OH NO, IT'S A HIGH, IT'S A HIGH NUMBER.
IT'S, YOU KNOW, BUT WITH ALL THESE GROUPS SAYING, OH, I CAN'T USE MY RESERVATION, THE NEXT ONE, EVERYONE'S GOING BEHIND, THEY'RE GONNA GO BEHIND THE HIGH NUMBERS.
EVERYONE WAS FEARING THAT THEY WERE GONNA GET YES, LE IS GOING BEHIND BACK NUMBER 200 SOMETHING.
YEAH, WE'LL WAIT, YOU KNOW, WE'RE GOTTA WORK ON FRONT.
WELL, PEOPLE WHO GOT THOSE HIGH NUMBERS WE'RE LIKE, AH, CRAP.
SO, AND SORT OF EXPLAIN HOW WE'RE CONFIDENT IF YOU'RE GOING BACK AT END OF THE LINE, YOU'RE GONNA GET YOUR RESERVATION.
IS THAT, I MEAN, THE MONEY S NOT, I, I, I GET WHAT YOU'RE SAYING, DAVID.
UH, IT'S, IT'S, IT'S JUST REALLY HISTORICALLY LOOKING AT THE PAB PROGRAM, EVEN, EVEN IN, YOU KNOW, 2018, 2017 WHEN, YOU KNOW, RATES WERE LOW AND, AND THE PERMITTING PROCESSES WERE A LITTLE BIT QUICKER IN KIND OF URBAN AREAS, IT, THERE WAS STILL MAYBE A, A A, I WOULD SAY A 60% HIT RATE IN SUCCESS RATE FOR HSC RESERVATIONS.
SO IT, IT'S STILL JUST, THERE'S A LOT OF EXTENUATING CIRCUMSTANCES INSIDE THESE DEALS THAT'LL CAUSE EVEN DEALS THAT ARE IN LINE AND, AND LOOK AND LOOK GOOD WILL, WILL HAVE TO WITHDRAW AND JUST EXTEND THEIR TIMELINES.
SO I, I FEEL LIKE THERE'S STILL A A LOT OF CHANCE FOR, FOR, YOU KNOW, VOLUME CAP RECYCLING THROUGHOUT THE YEAR.
BUT WE'RE IN THE 2025 BOND RESERVATIONS PROCESS.
WHEN WILL THAT BE DONE?
AFTER THAT THEY'LL DRAW A LINE.
YOU GUYS TALK ABOUT THE COLLAPSE AND ALL THAT STUFF.
IS THAT WHEN, LIKE WHAT IS THAT THE, SO THERE'S, OKAY, I, THERE'S TWO, TWO WAYS THAT THAT MONEY COMES AVAILABLE.
ONE IS BRAXTON SAID IS PEOPLE GOT A RESERVATION, THEY DON'T USE IT.
SO THAT MONEY GETS, GOES TO THE NEXT SLIDE.
THERE'S ALSO, THEY ONLY ALLOCATE OUT CERTAIN AMOUNT AT CERTAIN POINTS IN THE YEAR FOR CERTAIN PURPOSES.
ON COLLAPSE STATES THAT WHAT WE'RE TALKING ABOUT IS THOSE PURPOSES COLLAPSE AND TO ONE BIG STATEWIDE POT AND THEY JUST START GOING THROUGH THE ORDER.
SO THE WAY THE PATH PROGRAM OPERATES IS THERE'S SEVERAL KIND OF SUBS, SEALINGS IS WHAT WE CALL THEM.
AND THERE'S SEVERAL, THERE'S A COUPLE OF THEM THAT JUST DON'T, DON'T GET USED.
THERE'S THE STATE VOTED, UM, SUBSE, WHICH ONLY THE HIGHER EDUCATION COORDINATING BOARD HAS AUTHORITY TO USE THAT IDV, THEY TYPICALLY ISSUE A HUNDRED TO $150 MILLION A YEAR.
THAT WILL USUALLY LEAVE AROUND A HUNDRED TO $150 MILLION.
IT'LL BE ALLOCATED AT THE, UH, AT THE AUGUST COLLAPSE.
AND THERE'S ALSO THIS SMALL ISSUANCE IDS, WHICH THE ARE, UH, THESE ARE LIMITED TO A $10 MILLION ISSUANCE.
SO THEY'RE TYPICALLY TOO SMALL TO REALLY BE VIABLE, UH, FOR, FOR MANY OF THESE, I HAVEN'T SEEN ONE OF THESE BE ISSUED FOR PROBABLY FOUR YEARS.
SO IT'S USUALLY ANOTHER 80 MILLION THAT KIND OF COMES TOGETHER AT, AT THE AUGUST COLLAPSE COLLAPSES, AND THEN IT GOES TO THOSE PEOPLE, THOSE HORRIBLE HIGH NUMBERS OR LDG WHO HAD TO GO BEHIND THOSE PEOPLE THAT, UH, RIGHT.
AND THEN HOPEFULLY YOU'RE AROUND NOVEMBER AND YOU GOT SOMETHING.
ANY OTHER QUESTIONS ABOUT THE PIPELINE? I GUESS NOT.
WELL, I BELIEVE BRINGS US TO THE END OF THE AGENDA.
SO, UM, I WILL ANNOUNCE THAT WE WERE, WE'RE ADJOURNED AS OF 1.9 PM THANK YOU EVERYBODY.
AND AS A WARNING, THE NEXT MONTH'S MEETING WILL BE JAM PACKED.
SO WE HOPE EVERYONE WILL MAKE EVERY EFFORT TO ATTEND AND, UH, AND MAYBE BLOCK OUT TWO HOURS.
YEAH, TWO HOURS ON YOUR CALENDAR.