* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:02] MULTIPLY FOUR POINT A HALF TIMES, LIKE [Dallas Housing Finance Corporation on April 8, 2025.] HALF THAT ROUGHLY SMALL. ANYWAY, SO YEAH, FOUR. JACOB HERE. , GET ALL THE ANSWERS. WELL, SADIE WAS BLOCKING THE SIX FOOT STA FUNNIEST THING IN I OH, I KNOW. YOU MUST. KYLE USED TO SAY, I USED TO SAID THAT GUY IS DISTRACT TALL. DISTRACT. EXACTLY. WE'RE MARC OKAY. YES. JUST GOT YOUR TEXT. YOU CAME IN JUST ON TIME, SO YOU'RE GOOD DRIVING LIKE A BAD OH, NO. LITTLE LATE GOING. OKAY. NO DOWN OF THE CAR RESPONDS, RESERVATION WAS ABLE TO CALL INTO IT. I HAVEN'T TRIED JUST TYPING IT DIRECTLY INTO WEBEX YET. I'LL, I'LL DO THAT. I'LL DOUBLE BACK. WE MADE ALL, YEAH, WE DO. I THEY'RE TERRIFIC. OKAY, I'M GONNA CALL THIS MEETING ORDER. UM, DO YOU HAVE A QUORUM? IT IS 1202. AND, UM, I'LL TURN IT OVER TO, UM, PROJECT MANAGER SCHROEDER, TO DO THE ROLL CALL PLEASE. UM, WHEN I, YOUR NAME, JUST LET ME KNOW IF YOU'RE PRESENT. DIRECTOR SEAN ALLEN. I DO NOT SEE LONG OR ANYTHING. DIRECTOR BI NAAR. PRESENT. DIRECTOR JACK MARSHALL SEED. TATIANA FARROW. PRESENT. THANK YOU. DIRECTOR PATTY COLLINS. DO NOT SEE HER DIRECTOR. KEVIN PENTON, PRESENT. THANKS. VICE PRESIDENT RYAN GARCIA, PRESIDENT, DIRECTOR DAVID ELLIS. PRESENT. PRESIDENT MARC HEIN. PRESENT DIRECTOR OLIVER ROBINSON. PRESENT. DIRECTOR RYAN NOR PRESENT? UH, SECRETARY TONY PAGE. YEAH, HE SAID HE, HE'S ONLINE. I, YEAH. UHHUH. YEAH. THANK YOU. AND DIRECTOR SEAN ZA. AND JUST A REMINDER, CHS ONLINE OR ALL DIRECT YOURS ONLINE, PLEASE KEEP YOUR CAMERAS ON. THANK YOU. OKAY. ITEM NUMBER THREE ON THE AGENDA IS PUBLIC COMMENTS AND ITEMS FOUR THROUGH 11. UM, SO I WILL OPEN THE FLOOR IF THERE ARE ANY PUBLIC COMMENTS. IF YOU'RE ONLINE, YOU KNOW, SPEAK UP. HEARING NONE, I WILL ANNOUNCE THAT THERE ARE NO PUBLIC COMMENTS. UM, ITEM NUMBER FOUR IS APPROVAL OF THE MINUTES FOR THE MARCH, MARCH 11TH, 2025, CITY OF DALLAS HOUSING CORPORATION MEETING. AND I WILL ENTERTAIN A MOTION IN A SECOND. APPROVE THE MINUTES WRITTEN. AND DO I HAVE A SECOND? YEP. DIRECTOR ROBINSON? YES. OKAY. AND JUST, UH, DIRECTOR SEAN ALLEN. JUST, OH, GOOD. OKAY. THANK YOU. UM, OKAY. SO, UH, SO DOES ANYONE HAVE ANY CORRECTIONS OR AMENDMENTS TO THE MINUTES? OKAY. UH, A MOTION IS ON THE FLOOR. UH, ALL IN FAVOR SAY AYE. AYE. AYE. AYE. ANY OPPOSED? OKAY, YOUR MINUTES ARE PASSED. ITEM NUMBER FIVE IS AN ACTION ITEM. IT'S THE RESOLUTION FOR HIGHLINE ILLINOIS, A MULTIFAMILY RESIDENTIAL DEVELOPMENT [00:05:01] LOCATED AT 47 10 WEST ILLINOIS AVENUE, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 1 1. AND I'LL TURN IT OVER TO GENERAL MANAGER E QUINTO. THANK YOU MARCY. UM, SO WE HAVE CHRIS ABACUS HERE FROM GENERATION . SO THIS IS THE TOTAL OF OUR MOU OH AND I GUESS I REALLY SHOULD READ EACH OF THE PART, SORRY, LET ME GO BACK AND DO IT. ITEM A CONSIDER ADOPT RESOLUTION FOR A MEMORANDUM OF UNDERSTANDING WITH GENERATION HOUSING PARTNERS, LLC AND GHT DEVELOPMENT, TWO LLC, OR A DESIGNATED AFFILIATE FOR THE ACQUISITION, FINANCING, DEVELOPMENT AND OPERATION OF HIGHLIGHT ILLINOIS HIGHLINE, ILLINOIS, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT. P 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, HIGHLINE, ILLINOIS, G-P-L-L-C, AND APPROVING THE FORM OF A LIMITED LIABILITY COMPANY AGREEMENT IN 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 HIGHLINE, ILLINOIS LANDOWNER, LLC, AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. 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, HIGHLINE, ILLINOIS DEVELOPER LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. AND E 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, HIGHLINE, ILLINOIS CONTRACTOR, LLC, AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. OKAY, NOW TAKE IT. OKAY. UH, THANK YOU. SO WE HAVE CHRIS HERE, BUT I'LL JUST BRIEFLY INTRODUCED THIS PROJECT. SO WE INDUCED THIS, UM, LIKE LAST YEAR. WE ACTUALLY GOT A BOND RESERVATION ON THE 15TH COUPLE YEARS. THEY'RE ON THE CLOCK. UH, SO THAT'S WHEN WE STARTED NEGOTIATING THIS MLU. UM, THINK THE DEAL, IT'S PRETTY MUCH THE SAME AS WHAT'S PRESENTED IN I BELIEVE SEPTEMBER. UH, OUR DEAL TERMS ARE PRETTY SIMILAR TO WHAT THE SUM OF TENON LOSS, OUR RECENTLY CLOSED DEAL. UH, BUT I'LL TURN OVER TO CHRIS, UH, JUST TO REVIEW REAL QUICK AND, AND HAVE ANY QUESTIONS. SURE. THANK YOU, HONOR. SO, CHRIS, ACT OBJECTION AS HONOR, DO YOU NEED TO PROJECT, ASK, PROCEED AND VERY HAPPY SHARE THIS PROJECT WE'VE GONE THROUGH BEFORE, SO I'M JUST, EVERYTHING WAS APPROVED LAST YEAR. SINGLE FAMILY TO . YES, SIR. THAT, SIR. SO I, I'M THINKING MAYBE YOU WOULD, SHOULD SUMMARIZE KINDA, YOU KNOW, THE NUMBER OF UNITS AND ABSOLUTELY, YES. WE SENT OVER A PRESENTATION, WE LIKE TO THROUGH THAT. UM, SO I ILLINOIS, IT'S LOCATED 47 10 WEST POINT 200 UNITS. IT'S FAMILY DEVELOPMENT, SO IT'S DIRECTED, IT'S LOCATED DIRECTLY SOUTH MOUNTAIN COLLEGE. UM, IT IS A MIXED IMPACT PROBLEM. SO IT'S 30 50, 60 7% A MI, UM, VERY SIMILAR TO WEST MOLESTATION. HAVE THE SAME AMENITIES. SO OUR TOP FOUR AND TWO NUMBER OF GREEN AMENITIES, LOW WINDOWS, UH, HIGH VALUE INSTALLATION. UM, SO LOW FLOW FIXTURES IN TERMS OF THE, UM, COMMUNITY AMENITIES. WE HAVE A LOT OF COMMUNITY SPACE, A POLICING CENTER. WE GOT COWORKING SPACE, A LARGE . UM, SO THIS IS OUR, OUR AREA HERE. UM, IT SHOWS YOU EXACTLY WHAT THEY ARE. UM, SO YEAH, WE'RE ON THE DARK LINE, HIGH, HIGH TRAFFIC, DARK LINE ALL STORE AGAIN, RIGHT BY, UM, COLLEGE . HERE'S A SITE PLAN. UM, AGAIN, 200 UNITS LOCATED IN TWO BUILDINGS, FOUR STORE BUILDINGS, ELEVATOR SERVED, UM, WITH A DOG BARK SIDE OF THE PROPERTY. AND SO HERE'S OUR GOOGLE MIX AGAIN, IT'S 30, 50, 60, 70% MAIN LINE, SYSTEMIC AVERAGE PROJECT. SO THE AVERAGE VALUE, YEAH. LEVEL BE 60% AND NINE PLUS THE AVERAGE SCORE, 30 PLUS NINE SQUARE FEET. AND HOW MANY UNITS [00:10:01] ARE AT THAT? UH, THOSE 30 AND FIFTIES? UM, I WOULD, YEAH, HERE SEEING THE AMENITIES THAT WE HAVE PROJECT, UM, AGAIN, BRING THE COUNTERTOPS FOR FLOOR. UM, NUMBER BREED AMENITIES. THERE'S A SOURCE OF USES. UM, ONE THING YEARS IN TERMS OF CONTRIBUTION IS THE DEFERRED FEE OF ABOUT THREE AND HALF HUNDRED DOLLARS BACK PROJECT. UM, TOTAL COSTS, CLOSE DOLLARS TOTAL. UH, AND HERE'S OUR TIMELINE AGAIN. CLOSE BONDS HAVE BEEN CLOSE IN JULY. UM, YOU HAVE OUR CLOSING IN PLACE LATE JUNE, SOMETHING ON THAT FRONT FROM A PERSPECTIVE OR SYMBOLS THAT MINIMAL COMMENTS IS THERE. THE ZONING, NO ISSUES WITH THERE. OBJECTIONS THERE. UM, OKAY, SO ANY QUESTIONS FOR CHRIS ON THE BOARD? THE, THE SAW, THE DESIGN, DID YOU SAY IT'S SIMILAR TO WESTMORELAND STATION? CORRECT. SAME. BASICALLY THE SAME PRODUCT, RIGHT? OKAY. UH, YEAH, ELEVATIONS. OKAY. ANY OTHER QUESTION? OKAY, I'LL ENTERTAIN A MOTION IN A SECOND FOR APPROVAL OF THE MOU AND THESE CREATIONS OF THESE LLCS. ANYONE? I'LL MOVE SECOND ZA. OKAY. OKAY. UM, OKAY, I'M GONNA GO THROUGH, UM, DIRECT DIRECTOR ALLEN, MOVE TO APPROVE. YEP. UM, DIRECTOR NABI APPROVED DIRECTOR MARSHALL C APPROVE, UH, TREASURER PHARAOH APPROVE. DIRECTOR HINTON APPROVE. VICE PRESIDENT GARCIA, HE CUS HIMSELF. OH, OKAY. UM, DIRECTOR ELLIS APPROVE. I APPROVE. DIRECTOR ROBINSON APPROVE. DIRECTOR MOORE APPROVE. SECRETARY PAGE APPROVE. AND DIRECTOR ZA APPROVE. OKAY. MOTION PASSES. MOVING ON TO ACTION NINE. ITEM NUMBER SIX, RESOLUTION FOR THE LEGACY ON EAST, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT 26 21 SUTHERLAND AVENUE. DALLAS, DALLAS COUNTY, TEXAS. SEVEN BY 2 0 3 A. CONSIDER AN ADOPT A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH LDG MULTIFAMILY LLC OR A DESIGNATED AFFILIATE FOR THE ACQUISITION, FINANCING, DEVELOPMENT AND OPERATION OF THE LEGACY AND KEYS, MULTIFAMILY RESIDENTIAL DEVELOPMENT. B, CONSIDER AN ADOPT A RESOLUTION APPROVING THE TRANSFER AND ASSIGNMENT OF DHFC, THE LEGACY , G-P-L-L-C-A TEXAS LIMITED LIABILITY COMPANY TO THE CORPORATION, AUTHORIZING THE CORPORATION AS THE SOLEMAN MEMBER OF THE COMPANY AND 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 LEGACY ON PEACE DEVELOPER LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. D 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 LEGACY ON PEACE LANDOWNER LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED [00:15:01] LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. AND E CONSIDER AN ADAPTER 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 LEGACY MB LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. SO I WILL TURN IT OVER TO OUR GENERAL MANAGER. THANK YOU, . SO THIS PROJECT HAS BEEN IN THE WORKS FOR SOME TIME AND WE ACTUALLY APPROVED THE INDUCEMENT LAST, LAST YEAR. UH, I THINK THIS IS TAKING CARRIED FORWARD. SO IT'S BEEN, UH, WAITING IN THE WINGS FOR A MINUTE HERE, UH, WHICH IS FINE. IT'S 180 UNITS. UH, AND JAKE IS ACTUALLY HERE COME UP WITH AND SUMMARIZE THE ONE THING THAT, UH, WE DO HAVE TO CONSIDER HERE WITH THIS INTERVIEW IS THAT WE WILL BE PROVIDING A ONE POINT $500 FOR LOAN DEVELOPERS AS STAFF FINANCING. THAT'S OBVIOUSLY SOMETHING WE'VE NEVER DONE BEFORE, ALTHOUGH WE'VE TALKED ABOUT USING OUR FUNDS, UH, IN THIS MANNER. UH, SO THIS IS OUR FIRST FORAY AND C UH, HOW YOU GUYS FEEL ABOUT THIS. UH, CAN YOU GIVE US DETAILS ABOUT THE REASON WHY AND TERMS? YEAH, SO BASICALLY, YOU KNOW, WE ARE, WE ARE PARTICIPATING IN CASH FLOW OF THIS LOAN AND SO NOT THE LOAN, BUT THE PROJECT. SO AS A PARTNER IT SEEMS LIKE IT MAKES MORE SENSE TO PAY OURSELVES. AND SO WE'RE GETTING A, A RATE THAT'S ABOVE WHAT WE CAN GET IN OUR, UM, FLEXIBLE INVESTMENTS AS WELL. SO IT SEEMS LIKE IT UTILIZATION AT LEAST MONTHS AT THE SAME TIME WE'RE, WE'RE HELPING OUR PROJECTS ALONG. SO THAT'S KIND OF THE REASON BEHIND IT. UM, AND WHAT'S THAT INTEREST RATE IN THE TERM? 5%. 5% INTEREST. AND WHAT'S THE PRIMARY, THE, THE LOAN THAT WAS SUBORDINATE TO I I MEAN PRESUMABLY THAT THEY COULDN'T QUALIFY ON VALUE OR THE SCR. WHAT WAS THE ISSUE? YOU COULDN'T SIZE THE LOAN UP. YEAH, I MEAN, YES. IS THIS A SHORT ANSWER? I MEAN IT INTEREST RATE ENVIRONMENT IS BESIDES WARRANT JUST DOESN'T ALLOW US TO BORROW AS MUCH AS WE WE HAVE. WHO, WHO IS THE LENDER? WHAT ARE YOU GUYS BORROWING? YEAH, THIS IS OUR FOUR CAPITAL FUNDING, UH, THE EXACT AMOUNT THAT I WOULD NEED TO CHECK, BUT I CAN TELL YOU THAT RECENT EXPERIENCES THAT WE'RE EXPERIENCING THIS ON THE 12TH FIELD, WE'LL TALK ABOUT AT THE END OF THE MEETING. IT'S, WE'RE FRANKLY EDWARD JUST GETTING HAMMERED ON OPERATING EXPENSE. I THINK LENDERS AND INVESTORS ALIKE ARE JUST, THEY'RE BEING A LITTLE BIT MORE BEARISH AND THEY HAVE BEEN HISTORICALLY OR HAMMER US ON OPEX JUST IN TERMS OF THINKING YOU'RE BEING TOO CONSERVATIVE ON IT OR WELL, THEY'RE THINKING WE'RE TOO AGGRESSIVE, TOO AGGRESSIVE. WE DISH COMEDY BECAUSE WHEN YOU LOOK AT IT, YOU KNOW, WE GIVE 'EM AND WE KEEP TRACK OF ALL THAT OBVIOUSLY IN THE PORTFOLIO WE GIVE 'EM ACTUALS AND YOU KNOW, THEY'LL COME BACK AND SAY THINGS, WELL YOU KNOW, I SEE WHAT YOU'RE DOING ON THIS PROPERTY, BUT YOU KNOW, WE JUST FEEL LIKE IT NEEDS MULTIPLY FOUR AND A HALF TIMES, LIKE HALF THAT ROUGHLY SIX SMALL ANYWAY. SO YEAH. JACOB HERE GET ALL THE ANSWERS. WELL, SADIE WAS BLOCKING HIS STATURE. FUNNIEST THING. I DIDN'T TALK. OH, I KNOW. YOU MUST. KYLE USED TO SAY KYLE, I SAID THAT GUY IS JUST DRIVING REALLY TALL. DISTRACT. EXACTLY. LOOK. HELLO, WE'RE MARC. OKAY. JUST GOT YOUR TEXT. YOU CAME IN JUST ON TIME, SO YOU'RE GOOD DRIVING LIKE A BAD OH, NO, LITTLE LATE. OKAY. RESPOND. THE RESERVATION NOW WAS ABLE TO CALL INTO IT. I HAVEN'T TRIED JUST TYPING IT DIRECTLY INTO WEBEX YET. I'LL, I'LL DO THAT. I'LL DOUBLE BACK. WE MADE ALL THE WAY. YEAH, WE DO. I WAS, THEY'RE TERRIFIC. OKAY, I'M [00:20:01] GONNA CALL THIS MEETING ORDER. UM, DO YOU HAVE A QUORUM? IT IS 1202 AND UM, I'LL TURN IT OVER TO, UM, PROJECT MANAGER SCHROEDER TO DO THE ROLL CALL PLEASE. UM, I YOUR NAME, JUST LET ME KNOW IF YOU'RE PRESENT. DIRECTOR SEAN ALLEN. I DO NOT SEE ANYTHING. DIRECTOR BI NA PRESENT. DIRECTOR JACK MARSHALL SEED. TATIANA FARROW. PRESENT. THANK YOU. DIRECTOR PATTY COLLINS. DO NOT SEE HER DIRECTOR. KEVIN PENTON. PRESENT VICE PRESIDENT RYAN GARCIA. PRESENT DIRECTOR DAVID ELLIS. PRESENT. PRESIDENT MARCY HEIN. PRESENT DIRECTOR OLIVER ROBINSON. PRESENT. DIRECTOR RYAN NOR PRESENT? UH, SECRETARY TONY PAGE. HE, HE SAID HE, HE'S ONLINE. I, YEAH. UHHUH HE IS. YEAH. THANK YOU RIO AND DIRECTOR? SEAN TY. AND JUST A REMINDER, CHS ONLINE OR ALL DIRECTORS ONLINE CASE KEEP CAMERAS ON MIGHT PUT . THANK YOU. OKAY. ITEM NUMBER THREE ON THE AGENDA IS PUBLIC COMMENTS AND ITEMS FOUR THROUGH 11. UM, SO I WILL OPEN THE FLOOR IF THERE ARE ANY PUBLIC COMMENTS. IF YOU'RE ONLINE, YOU KNOW, SPEAK UP. HEARING NONE, I WILL ANNOUNCE THAT THERE ARE NO PUBLIC COMMENTS. UM, ITEM NUMBER FOUR IS APPROVAL OF THE MINUTES FOR THE MARCH 11TH, 2025, CITY OF DALLAS HOUSING DEFENSE CORPORATION MEETING. AND I WILL ENTERTAIN A MOTION IN A SECOND. THE MINUTES IS WRITTEN AND DO I HAVE A SECOND? YEP. DIRECTOR ROBINSON? YES. OKAY. AND JUST, UH, DIRECTOR SEAN ALLEN. IT'S JUST, OH GOOD. OKAY. THANK YOU. UM, OKAY, SO, UH, SO DOES ANYONE HAVE ANY CORRECTIONS OR AMENDMENTS TO THE MINUTES? OKAY. UH, A MOTION IS ON THE FLOOR. UH, ALL IN FAVOR SAY AYE. AYE. AYE. AYE. ANY OPPOSED? YOUR MINUTES ARE PASSED. ITEM NUMBER FIVE IS AN ACTION ITEM. IT'S THE RESOLUTION FOR HIGHLINE ILLINOIS, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT LOCATED AT 47 10 WEST ILLINOIS AVENUE, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 1 1. AND I'LL TURN IT OVER TO GENERAL MANAGER. ETO. THANK YOU MARCY. UM, SO WE HAVE CHRIS ABACUS HERE FROM GENERATION. SO THIS IS A OF OUR MOU OH AND I GUESS I REALLY SHOULD READ YOU TO THE ABOVE. SORRY, LET ME GO BACK AND DO IT. ITEM A, CONSIDER THE DOCTOR RESOLUTION, A MEMORANDUM OF UNDERSTANDING WITH GENERATION HOUSING PARTNERS, LLC AND GHT DEVELOPMENT, TWO LLC, OR A DESIGNATED AFFILIATE FOR THE ACQUISITION, FINANCING, DEVELOPMENT AND OPERATION OF HIGHLIGHT ILLINOIS HIGHLINE, ILLINOIS, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT. B, CONSIDERING A ADOPTER 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, HIGHLINE, ILLINOIS, G-P-L-L-C AND APPROVING THE FORM OF A LIMITED LIABILITY COMPANY AGREEMENT IN THE EXECUTION THEREOF. 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 HIGHLINE, ILLINOIS LANDOWNER, LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. D 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 HIGHLINE, ILLINOIS DEVELOPER LLC IN APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. AND E 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, HIGHLINE, [00:25:01] ILLINOIS CONTRACTOR, LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. OKAY, NOW TAKE IT. OKAY. UH, THANK YOU. SO WE HAVE CHRIS HERE, BUT I'LL JUST BRIEFLY INTRODUCE THIS PROJECT. SO WE INTRODUCED THIS, UM, LIKE LAST YEAR. WE ACTUALLY GOT A BOND RESERVATION ON THE 15TH OF THE YEARS. THEY'RE ON THE CLOCK. UM, SO THAT'S WHEN WE STARTED NEGOTIATING THIS MOU. UM, I THINK THE DEAL IS PRETTY MUCH THE SAME AS WAS PRESENTED IN I BELIEVE SEPTEMBER. UM, OUR DEAL TERMS ARE PRETTY SIMILAR TO WHAT WAS SUM OF TENISON LOSS, OUR RECENTLY CLOSED DEAL. UH, BUT I'LL TURN OVER TO CHRIS, UH, JUST TO REVIEW REAL QUICK AND, AND HAVE ANY QUESTIONS. SURE. THANK YOU, HONOR. SO, CHRIS, OBJECTION AS HONOR, YOU NEED THE FIFTH PROJECT. ASK PROCEED. THIS PROJECT WE'VE GONE THROUGH BEFORE, SO I'M JUST, EVERYTHING WAS APPROVED LAST YEAR FOR SINGLE FAMILY TO MULTI. YES, SIR. THAT, SIR. SO I, I'M THINKING MAYBE YOU WOULD, SHOULD SUMMARIZE KIND OF, YOU KNOW, THE NUMBER OF UNITS AND ABSOLUTELY, YES. WE SENT OVER A PRESENTATION. WE LIKE TO RUN THROUGH THAT. UM, SO HIGHLAND, ILLINOIS, IT'S LOCATED 47 7 WEST POINT 200 UNITS. IT'S FAMILY DEVELOPMENT, SO IT'S DIRECTED, IT'S LOCATED DIRECTLY SOUTH MOUNTAIN COLLEGE. UM, IT IS A MIXED IN PROBLEM. SO IT'S 30 50, 60 7% A MI, UM, VERY SIMILAR TO WEST MOLESTATION. HAVE THE SAME AMENITIES. SO SCORE OF FOUR, TWO NUMBER OF GREEN AMENITIES, LOW WINDOWS, UH, HIGH VALUE INSULATION. UM, SO BOTH FOOT FIXTURES IN TERMS OF THE, UM, COMMUNITY AMENITIES. WE HAVE A LOT OF COMMUNITY SPACE POLICING CENTER, WE GOT COWORKING SPACE, LARGE . UM, SO THIS IS OUR, OUR AREA HERE. UM, IT SHOWS YOU EXACTLY WHAT THEY ARE. UM, SO YEAH, WE'RE ON THE DARK LINES. HIGH, HIGH TRAFFIC, DARK LINE ALL STORE AGAIN, RIGHT BY, UM, COLLEGE . HERE'S A SITE PLAN. UM, AGAIN, 200 UNITS LOCATED IN TWO BUILDINGS, FOUR STORE BUILDINGS, ELEVATOR SERVED, UM, WITH A DOG BAR SIDE OF THE PROPERTY. WE, AND SO HERE'S OUR GOOGLE MIX AGAIN, IT'S 30 TO 50, 60, 70% MAIN LINE SUSPEND AVERAGED PROJECT. SO THE AVERAGE VALUE, YEAH, LEVEL WOULD BE 60% AND NINE PLUS THE AVERAGE SQUARE 30 SQUARE FEET. AND HOW MANY UNITS ARE AT THAT? UH, THOSE 30 AND FIFTIES? UM, I WOULD, YEAH, THEN HERE THE AMENITIES THAT WE HAVE PROJECT, UM, AGAIN, BRING COUNTERTOPS, PHOTO FLOORING, UM, NUMBER BREED AMENITIES UNDER SOURCE OF USES. UM, ONE THING YEARS IN TERMS OF THE CONTRIBUTION IS THE DEFERRED FEE OF ABOUT THREE AND A HALF DOLLARS BACK PROJECT. UM, TOTAL COSTS DOLLARS TOTAL. UH, AND HERE'S OUR TIMELINE AGAIN. CLOSED BONDS HAVE TO CLOSE IN JULY. UM, YOU HAVE OUR SUPPOSED TO BE PLACE LATE JUNE, SOMETHING GOOD ON THAT FRONT FROM AL PERSPECTIVE OR SYMBOLS THAT MINIMAL COMMENTS THERE. THE ZONING, NO ISSUES WITH THERE. OBJECTIONS THERE. DONE. OKAY, SO ANY QUESTIONS FOR CHRIS? THE BOARD, THE F SAW THE DESIGN. DID YOU SAY IT'S SIMILAR TO WESTMORELAND STATION? CORRECT. SAME. BASICALLY THE SAME PRODUCT, RIGHT? [00:30:02] AN ELEVATION. OKAY. ANY OTHER QUESTION? OKAY, I'LL ENTERTAIN A MOTION IN A SECOND FOR APPROVAL OF THE MOU AND THESE CREATIONS OF THESE LLCS. ANYONE IZA? OKAY. OKAY. UM, OKAY, I'M GONNA GO THROUGH, UM, DIRECTLY DIRECTOR ALLEN, MOVE TO APPROVE. YEP. UM, DIRECTOR NABI APPROVED DIRECTOR MARSHALL C APPROVE, UH, TREASURER PHARAOH APPROVE. DIRECTOR HINTON PRO. WHO? VICE PRESIDENT GARCIA. HE REFUSE HIMSELF. OH, OKAY. UM, DIRECTOR ELLIS APPROVE. I APPROVE. DIRECTOR ROBINSON. PROOF DIRECTOR MOORE APPROVE. SECRETARY PAGE APPROVE. AND DIRECTOR ZA APPROVE. OKAY, MOTION PASSES. MOVING ON TO ACTION NINE. ITEM NUMBER SIX, RESOLUTION FOR THE LEGACY ON EAST, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT 26 21 SUTHERLAND AVENUE, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 0 3 A. CONSIDER AN ADOPT A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH LDG MULTIFAMILY LLC OR A DESIGNATED AFFILIATE FOR THE ACQUISITION, FINANCING, DEVELOPMENT AND OPERATION OF THE LEGACY ON PEACE. A MULTIFAMILY RESIDENTIAL DEVELOPMENT. B, CONSIDER AN ADOPT A RESOLUTION APPROVING THE TRANSFER AND ASSIGNMENT OF DHFC, THE LEGACY , G-P-L-L-C-A TEXAS LIMITED LIABILITY COMPANY TO THE CORPORATION AUTHORIZING THE CORPORATION AS THE SOLEMAN MEMBER OF THE COMPANY AND APPROVING THE FORM AND SUBSTANCE OF AN AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. C, CONSIDER AN ADAPT, A RESOLUTION OF 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 LEGACY ON PEACE DEVELOPER LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT IN THE EXECUTION THEREOF. D, 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 LEGACY ON PEACE LANDOWNER LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. AND E CONSIDER AN ADOPTER 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 LEGACY ME SECTOR LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. SO I WILL TURN IT OVER TO OUR GENERAL MANAGER. THANK YOU. YOU BEST ? SO THIS PROJECT HAS BEEN IN THE WORKS FOR SOME TIME AND WE ACTUALLY APPROVED THE INDUCEMENT LAST, LAST YEAR. UH, I THINK THIS IS TAKING CARRY FORWARD, SO IT'S BEEN, UH, WAITING IN THE WINGS FOR A MINUTE HERE, UH, WHICH IS FINE. IT'S 180 UNITS. UH, AND JAKE IS ACTUALLY HERE, COME UP WITH THAT. SUMMARIZE. THE ONE THING THAT UM, WE DO HAVE TO CONSIDER HERE WITH THIS INTERVIEW IS THAT WE WILL BE PROVIDING A ONE POINT $500 FOR YOU LOAN AS STAFF FINANCING. SO THAT'S OBVIOUSLY SOMETHING WE'VE NEVER DONE BEFORE, ALTHOUGH WE TALKED ABOUT USING OUR FUNDS, UH, IN THIS MANNER. UH, SO THIS IS OUR FIRST FORAY AND SEE, UH, HOW YOU GUYS FEEL ABOUT THIS. UH, CAN YOU GIVE US DETAILS ABOUT THE REASON WHY AND TERMS? YEAH, SO BASICALLY, YOU KNOW, WE ARE, WE ARE PARTICIPATING IN CASH FLOW OF THIS LOAN AND SO NOT THE LOAN, BUT THE PROJECT. SO AS A PARTNER IT SEEMS LIKE IT MAKES MORE SENSE TO PAY OURSELVES. AND SO WE'RE GETTING A, A RATE THAT'S ABOVE, BUT WE CAN GET IN OUR, UM, TAX FULL INVESTMENTS AS WELL. SO IT SEEMS LIKE IT IS UTILIZATION AT LEAST MONTHS AT THE SAME TIME WE'RE, WE'RE HELPING OUR PROJECTS ALONG. [00:35:01] SO THAT'S KIND OF THE REASON BEHIND IT. UM, AND WHAT'S THAT INTEREST RATE IN THE TERM? 5%. 5% INTEREST. WHAT'S THE PRIMARY, THE, THE LOAN THAT WAS SUBORDINATE TO I I MEAN PRESUMABLY THAT THEY COULDN'T QUALIFY ON VALUE OR DSCR. WHAT WAS THE ISSUE? YOU COULD SIZE THE LOAN UP. YEAH, I MEAN, YES IS IS THE SHORT ANSWER. I MEAN IT INTEREST RATE ENVIRONMENT IS SO FOR, IT JUST DOESN'T ALLOW US TO BORROW AS MUCH AS WE HAVE. WHO, WHO IS THE LENDER? WHAT ARE YOU GUYS FOLLOWING? YEAH, THIS IS OUR FOUR CAPITAL FUNDING, UH, THE EXACT AMOUNT THAT I WOULD NEED TO CHECK, BUT I CAN TELL YOU THAT RECENT EXPERIENCE THAT WE'RE EXPERIENCING THIS ON THE 12TH DEAL THAT WE'LL TALK ABOUT AT THE END OF THE MEETING IS FRANKLY WE'RE JUST GETTING HAMMERED ON OPERATING EXPENSES. I THINK LENDERS AND INVESTORS ALIKE ARE JUST, THEY'RE BEING A LITTLE BIT MORE BEARISH AND THEY HAVE BEEN HISTORIC LEADS OR, UH, HAMMERED US ON OPEX JUST IN TERMS OF THINKING YOU'RE BEING TOO CONSERVATIVE ON IT OR WELL, THEY'RE THINKING WE'RE TOO AGGRESSIVE. TOO AGGRESSIVE. IT HONESTLY COMEDY BECAUSE WHEN YOU LOOK AT IT, YOU KNOW, WE GIVE 'EM AND WE KEEP TRACK OF ALL THAT OBVIOUSLY IN THE PORTFOLIO WE GIVE 'EM ACTUALS AND YOU KNOW, THEY'LL COME BACK AND SAY THINGS, WELL YOU KNOW, I SEE WHAT YOU'RE DOING ON THIS PROPERTY, BUT YOU KNOW, WE JUST FEEL LIKE IT NEEDS TO BE MORE JUST KIND OF GIVEN THINGS THAT WE'RE SEEING UP. IT'S JUST A LITTLE CHALLENGE. I MEAN THEY'RE JUST, THEY'RE JUST TRYING TO BE CONSERVATIVE AND I GET IT. AND SO FOR ALL OF THESE REASONS, YOU KNOW, PARTICULARLY ON SMALLER DEALS, THIS ONE'S 180 UNITS THEY MENTIONED, WE'RE JUST FINDING MORE AND MORE DIFFICULT DEALS OF ANY SIDE, PARTICULARLY SMALLER ONES. GET THE PENCIL THAT SOME SORT OF BRIDGE. SO I REFERENCED THE LUKE 12 DEAL A MINUTE AGO. UM, IT IS BY WAIVER MINE WE GOT $10 MILLION IN TCAP FROM TDA AND WE'RE STILL, WE'RE STILL A PENSION FOR PENNIES HERE WHO COMES DOWN THE FINISH LINE TRYING TO GET IT TO THE PENCIL SO WE CAN CLOSE IT. SO, UM, IT, IT'S DIFFICULT TO POINT TO ONE THING BECAUSE IT'S REALLY NOT JUST ONE THING, IT'S JUST THE WHOLE WHOLE MESS OF THINGS THAT ARE MAKING IT CHALLENGING. UM, BUT YOU KNOW, THAT, THAT'S KIND OF, I'M HAPPY. I'VE GOT A PRESENTATION NOW INTO IT FURTHER WHEN WE GET INTO IT, BUT, UM, KAREN DID A GOOD JOB JUST ABOUT GIVING SOME BACKGROUND IS AND THEN AARON, I'M CURIOUS, OTHER DEVELOPERS OR PARTNERS OF OURS, I ASSUME PEOPLE HAVE RUN INTO THESE FANCY ISSUES OVER THE LAST COUPLE YEARS ESPECIALLY, HOW HAVE THEY OVERCOME THAT? I'M JUST CURIOUS IS THE FIRST TIME? YEAH, I MEAN IT SEEMS LIKE OVER THE LAST TWO YEARS, ESPECIALLY ALL OF THESE LIVE TECH DEALS, YOU KNOW, BEING THAT FOR THE MOST PART THEY'RE ALMOST A HUNDRED PERCENT RESTRICTED AT 60% A MI. SO WHEN YOU RESTRICT ALL YOUR UNITS, IT'S, IT'S TOUGHER AND TOUGHER TO COVER THAT DEBT SERVICE. SURE. SO AS RATES HAVE RISEN, AND LIKE I SAID, OPERATING EXPENSES HAVE KIND OF GONE OVER THE LAST COUPLE YEARS NOW WITH ALL THE I UNCERTAINTY AND MARKETS THAT WE CAN SAY THAT'S GOING BE, IT'S JUST HARDER, HARDER TO CONVINCE INVESTORS TO SAY, HEY, YOU KNOW, GIVE US A FIXED RATE HERE, UM, AT A CERTAIN AMOUNT. SO ONE THING TOO, AND WE'LL GET INTO THIS IN THE PRESENTATION, I THINK IS WORTH THAT THE REQUEST IS NOT AS SIMPLE AS SAY GIVE US SOME MONEY. IT'S, IT'S ALSO, HEY, GIVE US SOME MONEY BUT WE'RE GOING TO GIVE Y'ALL, WE'RE GONNA CONTRIBUTE KNOW A MATCH. SO REQUEST ARE THE ONE HALF MILLION DOLLAR LOAN COMES WITH LBG PONYING UP AS WELL AND SAYING, HEY, WE'RE DOING THE SAME AMOUNT OF THE SAME TERMS BECAUSE I DON'T, FRANKLY I DO THIS BECAUSE IT IS, IT IS A PARTNERSHIP BETWEEN THE DHSC. SO I DON'T, IT'S NOT REASONABLE FOR ME TO ASK YOU GUYS TO DO SOMETHING WOULDN'T ALSO, SO JUST UNDERSTAND THAT THAT COMES ALONG WITH REQUEST ON WHAT'S THE INTEREST RATE OF YOUR PRIMARY OR SENIOR DEBT? UH, RIGHT NOW IT'S PROBABLY COVERED AROUND SIX. UH, AND THEN OBVIOUSLY WE JUST SPREAD IT, BUT WE CHECKED IT THIS MORNING AND I, I THINK THAT ONE'S MEASURED OFF THE, THE 15 YEAR BA NON CALLABLE BOND BRAND, WHICH NOW'S, UH, AS OF THIS MORNING IT'S PROBABLY LIKE 3.3, 3.4. SO PLUS THE UNITED SPREAD YOU CAN JUST, AND UM, YOU WERE SAYING IT'S THE SAME TERMS BUT UM, ON THIS LOAN, IT'S NOT COMPOUNDING RIGHT, THE ONE THAT PER BUT DOES NOT COMPOUND. AND HOW ABOUT YOURS PER BUT DOES NOT, THEY'RE THE EXACT SAME TERMS, WHICH WAS INTENTION. GOOD. I THINK I'D ALSO ASK FOR ALL OF THIS QUESTION. I THINK WE'VE SEEN SOME SOFTENING IN THE EQUITY MARKET AS WELL FOR THE TAX CREDIT'S, JUST NOT GETTING AS MUCH UP FRONT. SO THAT'S CAUSING WHAT IS THE, WHAT IS THE RATE RIGHT NOW FOR THE TAX CREDIT? THAT'S WHAT, IT'S 84, UH, WHICH IS SHE EASE. IT'S FUNNY HOW MUCH, I'M SORRY, 84 CENTS SOME, BUT WHAT'S FUNNY ABOUT IT ACTUALLY, IT'S REALLY NOT FUNNY AT ALL, BUT WHAT'S INTERESTING ABOUT IT, YOU KNOW, IT'S A CRA MARKET [00:40:01] FOR 'EM AND IT'S JUST EVEN STILL, IT'S THE BEST. I WAS TALKING TO DEVELOPERS, THEY SAID THEY GOT 86 ON DOLLARS, UH, YOU KNOW, FOR DISNEY ROCKWELL. SO IT'S JUST GETTING HAMMERED, UH, HAS TO DO WITH HUD AND NATIONAL POLITICS, BLAH, BLAH BLAH. SO IT'S TOUGH RIGHT NOW. YOU'RE FORTUNATE YOU WE ARE WHERE WE ARE AND I, WE HAD A DEAL IN AUSTIN, YOU KNOW, IT WAS, WE JUST HAVE QUOTED RECENTLY AND ANOTHER ONE OUTSIDE OF SAN ANTONIO AND IT WAS A STRUGGLE TO GET BOTH OF THOSE IN THE VEGAS STEPS. UM, AND IT, SO PART OF THAT, SINCE AUSTIN IS SEEING RIGHT NOW, BUT UH, YOU KNOW, NOW IT HISTORICALLY HAS BEEN, I THINK CONTINUING WILL CONTINUE STRONG MARKET FOR INVESTORS. STRENGTH IS RELEVANT AND I SAY IT'S STRONG WHEN SOMEBODY PUTS THE TERM SHEET IN FRONT, A STRENGTH EQUAL SENSE, BUT THAT'S JUST, THAT'S MORE MAY A PENNY OPINION ERROR, SOMEBODY DIFFERENT. BUT THE GOOD THING WITH ARM FOUR, I MEAN WE'VE WORKED WITH, I THINK EVERY DEAL THAT WE'VE DONE, THE EXCEPTION OF A REVISION CASTER HAS BEEN DONE WITH DHSC HAS BEEN DONE. AND SO THERE'S JUST, THERE'S FAMILIARITY IN CERTAINTY EXECUTION. UH, THEY, THEY KNOW, THEY KNOW THE GAME, THEY KNOW HOW IT WORKS. UM, T-D-H-C-A IS THE ISSUE ON MS. SMITH. AS YOU GUYS KNOW, EVERY THCA ISSUE DEAL WE'VE EVER DONE, WITH THE EXCEPTION OF JUAN, UM, HAS BEEN WITH . THEY JUST, THERE'S LOTS OF INS AND OUTS ON ISSUE. SO, UM, YOU KNOW, WE MIGHT MIGHT COST OURSELVES IN USING OUR FOUR, UH, JUST TO HAVE SOME MORE CERTAINTY OF EXECUTION, BUT COST, THAT'S VERY MEANINGFUL INCOME FOR US ONCE THE DEAL IS DONE. BUT DOWN THE ROAD, A NUMBER OF YEARS DOWN THE ROAD, AND PLEASE AARON, TELL ME IF I'M NOT THINKING OF IT RIGHT, BUT I GUESS IN MY MIND, IF WE'RE GIVING A, A SECOND RATE SHOULD BE PROPORTIONATE TO THE RISK AND YOU KNOW, IT'S A SMALL PIECE OF THE CAPITAL STACK. SO BIG PICTURE PROBABLY DOESN'T AFFECT THE PROJECT TOO MUCH. I MEAN, I DON'T KNOW HOW CLOSE IT IS TO MARGINS OF WORKING OR NOT, BUT YOU KNOW, I MEAN MY THOUGHT WOULD BE, YEAH, MY INITIAL THOUGHT WOULD BE TO TRY TO GET, YOU KNOW, GET A RATE THAT IS, YOU KNOW, IS PROPORTIONAL TO THE RISK JUST BEING A SECOND IS HIGHER. NOT TO MENTION, YOU KNOW, THAT MAYBE WELL IT HAS TO BE LOWER, OTHERWISE THERE'S NO ACCRETION BETWEEN GOING WITH THE CONVENTIONAL LOAN. RIGHT. WELL HE SAID THAT HE SAID THEY COULDN'T, THEY GOT SIZED OUT. THAT'S WHAT I UNDERSTOOD. WELL, AND MORE THAN THAT TOO, I MEAN WE, WE POSITIONED IT IN SUCH A WAY WHERE IT'S HIGH D SURE DEVELOPER FEE IS PAID BACK, HE GETS PAID BACK. BUT YEAH, I MEAN THAT'S JUST TO, NOT TO PUT TOO FIVE POINT ON IT, BUT TO DEAL DOESN'T WORK WITHOUT IT. SO, UH, YOU, WE WOULDN'T, I WOULD NOT ASK YOU GUYS FOR MONEY JUST FOR GRANTS. I MEAN IT'S JUST NOT WHAT IS OUR ALTERNATIVE? WHERE, WHERE DO WE HAVE THE MONEY RIGHT NOW? WHAT DO YOU MEAN OUR TAX TURNING INTEREST? YEAH, WE HAVE TAX. HOW MUCH IS THAT YIELDING? FOUR. FOUR QUARTER SOMETHING. SO IT'S A NET BENEFIT OF 75 CENTS OR ON A DOLLAR FOR A LITTLE BIT OF RISK OF THE STEEL. THE ISSUE IS DEAL EXECUTION, RIGHT? IT'S THE DEAL LEASE UP, IT'S A GATE COMPLETED, RIGHT? THE 360 2 A FOOT BUDGET, WHICH SEEMS LIKE YOU GUYS HAVE, IT'S A HEALTHY BUDGET. WELL LOOK, I MEAN EVER BEEN SINCE I'VE BEEN ON THIS OF THESE CAPITAL STACKS AND IT'S JUST CRAZY THE AMOUNT OF SOFT LOANS AND STUFF THAT THESE DEVELOPERS HAVE TO PROCURE MAKE THESE DEALS FOR. IF YOU COME TO AN ORGANIZATION LIKE OURS, YOU KNOW, YOU'RE COMING IN FOR SUBSIDY OF SOME WAY, SHAPE OR FORM. SO ANY LOAN WE GIVE, IT HAS TO BE A A SUBSIDY, IT'S NOT GONNA BE A MARKET RATE INTEREST LOAN. THAT'S WHY WOULD YOU GO WITH US IF YOU'RE GONNA DO THAT. SO LOOK, I HAVE THOUGHT THIS GAP FINANCING AND YOU KNOW, WHERE DEALS AREN'T LING DEALS, WE WANNA WORK THAT WANT TO WORK LET'S DEVELOPERS THAT WE HAVE RELATIONSHIPS WITH AND LDG IS ABOUT AS YOU KNOW, STRONG AS IT GETS FOR ORGANIZATION, LOOK, LET'S DEPLOY THIS CAPITAL, WHICH IS FRANKLY GETTING EMBARRASSINGLY HIGH THIS BALANCE, IT'S GETTING HIGHER AND HIGHER AND HIGHER AND MAKE THESE DEALS WORK. BUT YEAH, IT'S GONNA HAVE TO LOOK LIKE A SUB INTEREST RATE IN TERMS IT'S GONNA LOOK LIKE SUBSIDIZED LOSS KIND. THAT'S JUST HOW IT'S, HOW IT'S GONNA GO DOWN. I THINK IT'S GONNA WORTHWHILE AUDITS. WERE, WHILE I THINK, YOU KNOW, LDG AT LEAST WE ARE DIPPING OUR TOE IN THE WATER THIS, BUT I THINK IT'S ABOUT AS NOT GOOD A CIRCUMSTANCE. THE ALTERNATIVE IS THE DEAL DOESN'T HAPPEN AND WE LEAVE OUR MONEY IN THE BOND IN THE BANK. YEAH, THE BOND. WELL, YEAH, AND I GUESS MY QUESTION IS, IS THAT REALLY THE ALTERNATIVE, RIGHT? YOU KNOW, IF, IF THIS IS HOW MUCH THE CAPITAL STACK WAS, THE TOTAL CAPITALIZATION OF CONSTRUCTION, BUT I CAN'T REMEMBER BUT 7000001.5 MILLION ON, YOU KNOW, YOU GET AN EXTRA TWO, YOU KNOW, TWO BITS OR [00:45:01] WHATEVER. UH, WELL THEY'RE ALSO FIVE, RIGHT? SO IT'S 3 MILLION, 3 MILLION OUT OF 57 MILLION BETWEEN THE TWO MONTHS. I, THAT'S KINDA MY THOUGHT IS, YOU KNOW, JUST MAKE SURE WE'RE GETTING, YOU KNOW, 'CAUSE REALLY, I MEAN, YOU KNOW, IS, IS 50 BASIS POINTS, I, I GET IT. WE WANNA GET THIS DEAL DONE IS 50 BASIS POINTS COMPARED, YOU KNOW, COMPARED TO RISK FOR THE INVESTMENT WORTH IT. I DON'T KNOW, MAYBE, MAYBE TO GET IT DONE IF IT'S TRULY THE ONLY ALTERNATIVE TO GET IT DONE. BUT YEAH, I WOULD ADD TO, AND I THINK, UH, I KNOW THIS DON'T WORK FOR THE AGENCY AND I'M ON THE BOARD, BUT YOU KNOW, I THINK THERE'S A CERTAIN LEVEL OF VALUE TOO AND BEING ABLE TO SAY, HEY, NOT ONLY HAVE WE MADE ALL THIS MONEY OVER THE YEARS, WE'VE TAKEN IT INVESTED BACK, I THINK THERE'S A CERTAIN LEVEL OF VALUE THAT COMES WITH THAT. AND IT SEEMS PROBABLY CHEAP TOO FOR US TO SAY, HEY, YOU KNOW, WE ASKED THE HFC FOR ONE AND A HALF MILLION. WE ALSO DEPLOYED ONE POINT A HALF MILLION BECAUSE WE BELIEVE IN THIS PROJECT AND BELIEVE IN COMMUNITY I THE OPTICS OF VALUE, THE NUMBER ON THE VALUE. ONE THING I'M GONNA THROW OUT THERE, YOU KNOW, WHENEVER WE DO THESE DEALS, WHAT HILLTOP DOES THIS PUBLIC BENEFIT ANALYSIS, YOU KNOW, WE SAY OKAY, FOR THE TAX DE EXEMPTION WE'RE GIVING, YOU KNOW, RENT, RENT REDUCTIONS TO THE TENANTS AND MONEY INTO THE HFC, YOU KNOW, GOING INTO THE PUBLIC GOOD, WELL SITTING THERE IN THE, YOU KNOW, JUST EARNING INTEREST. IT'S NOT REALLY WE, WE DO NEED TO DEPLOY, BUT FAIR POINT, LIKE WHAT IS THE TERMS IN WHICH WE DO, YOU KNOW, WHAT MAKES SENSE FOR OUR ORGANIZATION? IT, IT DOES NEED TO LOOK FAIRLY ATTRACTIVE FOR THESE DEVELOPERS AND NEEDS TO MAKE THESE DEALS FOR, BECAUSE THAT'S PUBLIC GOOD. BUT IT'S A GOOD QUESTION. WE'RE IT'S OUR FIRST, IT'S OUR FIRST FORAY OF THIS. ANY OTHER QUESTIONS? I GUESS WE COULD HAVE LOOKED AT IT AS AN EQUITY POSITION. SECRETARY PAGE, WERE YOU YEAH, WERE YOU ON MEETING? YEAH, I HAVE A I HAVE A QUESTION. UM, I'M LOOKING AT THE RENDERING AND THE DEVELOPMENT PLAN AND I, I'VE BROUGHT THIS UP I THINK ON SOME OTHER CASES BEFORE THE LANDSCAPING LOOKS A LITTLE SPARSE HERE. IS THERE THIS, WHAT'S THE LANDSCAPING BUDGET GONNA BE ON THIS THING? BECAUSE IF I LOOK AT IT, IT, WHENEVER I SEE A PROJECT WITH LIKE VERY LITTLE LANDSCAPING, IT JUST KIND OF READS PUBLIC HOUSING AND THAT'S KIND OF HOW THIS THING LOOKS BECAUSE THERE'S NOT MUCH LANDSCAPING THERE DEPICTED. HEY DIRECTOR PH, THIS IS JAKE. LEG. YEAH. UM, YEAH, THE, TO BE REAL BLUNT ABOUT IT, THE RENDERING AND THE THE COLOR SITE PLAN THAT WE SHARED IS JUST NOT, DOESN'T DO A GREAT JOB OF ILLUSTRATING THE EXTENT OF THE LANDSCAPING THERE. WE, WE'VE GOT A FULL, VERY DETAILED LANDSCAPE PLAN, UM, THAT WE CAN SHARE WITH YOU. IT'S UH, I THINK IT'S ACTUALLY PRETTY CLOSE TO BEING APPROVED BY THE CITY, BUT IT PROVIDES NOT COLORFUL DETAIL, IT'S BLACK AND WHITE, BUT IT PROVIDES YEAH, THAT'S FINE. PROVIDE MORE DETAIL ABOUT WHAT'S GOING ON THERE, WHICH IS PART C, WHAT YOU SEE ON THE PRETTY PICTURES. OKAY. COULD YOU, COULD YOU FORWARD THAT LANDSCAPE PLAN TO, UH, TO THE STAFF AND SO WE CAN SEE IT? YEAH, I'D LIKE TO SEE A COPY OF THAT. OKAY. THANK YOU SIR. WE'LL DO IT. WHAT'S ON THERE NOW? IS THERE CHURCH THAT'S ON THERE? SO WHAT WAS ON THERE ORIGINALLY WAS AN OLD PUBLIC HOUSING DEAL. THE ONLY THING THAT'S REMAINING IS THE ORIGINAL CLUBHOUSE. I UNDERSTAND HE SITS AT ONE POINT THAT WAS BEING USED AS A DAYCARE. TAKE THAT FROM WHATEVER IT'S WORTH. UH, BUT THAT'S THE ONLY, ONLY IMPROVEMENT THAT'S REMAINING ON THE PROPERTY AND THAT'LL OBVIOUSLY BE . ARE WE DEFERRING OUR GCP AS WELL FOR 400 OR 2000? NO, WE'RE NOT. I THINK ALL ALL OURSELVES. WHY DON'T WE SPIT OUT THE LOAN AND WE, WE DISCUSSED IT THAT WAS CONSIDERED, WELL IT SEEMS LIKE IT'S EASIER TO ACCOUNT FOR IT. LIKE IF WE JUST PICK MORE REGULAR FEES. OKAY. JUST TREAT IT LIKE A REGULAR DEAL AND NOT THROW MONEY AT A RIGHT. OKAY. THAT'S FAIR. IT'S EASIER. YEAH. AND IT SOUNDS LIKE, UH, AND AND OLIVER, I THINK YOUR POINTS ARE, ARE VERY WELL RECEIVED OVER HERE, RIGHT? I MEAN WE WANNA MAKE SURE WE'RE AS GOOD STEWARDS OF OUR FUNDS AND IT'S A RISK REWARD. UH, BUT IT SOUNDS LIKE YOU GUYS HAVE CONTEMPLATED A VARIETY OF DIFFERENT STRUCTURES AND THIS WAS THE ONE THAT WAS THE SIMPLEST, MADE THE MOST SENSE, EXPOSED US TO THE LEAST AMOUNT OF RISK, UH, AND GETS THE DEAL, BUT RIGHT. YEAH, I HAVE NO DOUBT YOU GUYS HAVE GONE THROUGH ALL THE MACHINATIONS AND WELL THING LOOK, CAN'T BE A MARKET DEAL. YOU JUST LOOK LIKE A SUBSIDIZED DEAL, BUT IT CAN'T LOOK LIKE A SWEETHEART DEAL EITHER. AND I THINK THAT'S MAYBE THE, ARE WE KISSING THE SWEETHEART TERRITORY OF 5%? I, I DON'T THINK SO, BUT IT'S JUST KINDA LIKE A, I MEAN IT'S DEFINITELY MORE MARKET THAT'S, THAT'S THE PREROGATIVE OF HFC IF THEY WANNA DO A 3% LOAN. 'CAUSE THE DEAL MAKES SENSE THAT IT NEEDS TO GET DONE. I MEAN THAT'S RIGHT. I MEAN, SO I'M NOT ARGUING THAT POINT. I JUST YEAH, YEAH. [00:50:01] LEAST A JUSTIFIABLE SPREAD COMPARED TO THE ALTERNATIVE, RIGHT? IF WE'RE TAKING EVEN LOWER THAN WHAT WE WOULD YIELD RISK FREE, THEN THAT'S A LITTLE BIT OF A HARDER STUFF. SURE, SURE DON'T, THAT WAS A BAD EXAMPLE OF MY PART. , YOU'RE, YOU'RE A DIRECT PARTNER IN THE STUDIO FLOW. SO IN A SENSE YOUR MISSION IS BUY AFFORDABLE HOUSING. SO IF THIS IS THE VEHICLE WHERE YOU CAN DO IT, YOU MIGHT AS WELL PAY YOURSELF ALONG AWAY, RIGHT? . WELL OF COURSE WE ARE GETTING PAID LATER. I MEAN, JAKE, ARE WE OPERATING UNDER THE ASSUMPTION THAT WE'RE GONNA OUTPERFORM THE PROFORMA THAT THE BANK IS ACCEPTED? LIKE WHAT IS THE MECHANISM FOR PAYING PRACTICE LOAN? IS THERE GONNA BE SUFFICIENT CASH FLOWS OR YOU COULD GO LOOK TO BUY SOME PORTION OF THE SEAL? YES. IS THE ANSWER TO ALL OF YOUR QUESTIONS? I THINK THE WAY THAT IT'S MODELED RIGHT NOW, I THINK IT'S GOTTA BE REPAID YEAR 13 OR 14 IN ITS ENTIRETY LEASE BOTH L BT AND HC. UH, AND SO I MEAN, YEAH, I MEAN THE CIRCUMSTANCES ECONOMICS ALLOW THAT ONE WOULD LOOK THROUGH FINANCE. OBVIOUSLY I CAN GET REPAID SOONER, BUT I THINK IT MIGHT BE, UM, A LITTLE BIT OF AN AGGRESSIVE VIEWPOINT ON MY PART. BUT I THINK ONE WAY YOU CAN LOOK AT IT IS THAT, YOU KNOW, THINGS ARE TOUGH RIGHT NOW. RATES ARE HIGH. SURE THINGS SHIFT. THERE'S AN OPPORTUNITY TO TO PUSH THAT WEIGHT DOWN, DO THINGS THAT THINGS GET TO GET BETTER. I SURE, I CERTAINLY HOPE THEY WOULDN'T, BUT YES, THEY ANSWERED ALL QUESTIONS. YOU'D HAVE TO COME UP WITH LIKE FIVE HALF MILLION OF IES TO PAY THOSE TWO LOANS DOWN IN 13, 14 YEARS. YEAH, I MEAN IT COULD BE AN OPPORTUNITY. MAYBE WE JUST WRITE IN THERE THAT, YOU KNOW, REFINANCING MAKES SENSE. WE MAKE SURE THEY TAKE OUT OUR LOAN. YEAH, WE DONE THAT. I TELL YOU LIKE TO THE EXTENT THIS IS HELPFUL, MAYBE IT IS, MAYBE IT IS. I MEAN WE'VE DONE THIS STRUCTURE MANY, MANY TIMES, UH, IN AUSTIN WITH THE HOUSING AUTHORITY THAT SIMILAR TO YOU GUYS. WE, WE DO A LOT OF, A LOT OF WORK IN AUSTIN WITH AUSTIN HOUSING AUTHORITY AND UH, JUST RECENTLY ON A DEAL THAT WE CLOSED WITH THEM BACK IN SEPTEMBER OF 24, WE INCORPORATED THE EXACT SAME STRUCTURE ON THAT. AND I WANNA SAY THAT WHAT YOU GUYS JUST BEEN IN, YOU KNOW, IN THE EVENT OF A REFINANCE SALE, THIS POSITION OR WHATEVER, IT'S THE EXTENT THAT THOSE FOREIGN FUNDS ARE STILL HANGING OUT THERE, THOSE GET PAID OFF. I MEAN OBVIOUSLY WE'RE GONNA PAY BACK FOR SURE. AND SORRY, WHAT, WHAT IS THE ORDER OF PAYMENT IN THE WATERFALL FOR THIS LOAN? IS IT, IS IT PAID RIGHT AFTER THE DEVELOPMENT FEE? IT'S FOR DEVELOPER FEE AND THEN THE, THE SUBORDINATE NOTES BETWEEN LDG AND DHC. YEAH. AND, BUT, BUT I MEAN THAT IS THE ONE COMPONENT OF THIS THAT I FIND TROUBLING. LDG IS THE DEVELOPER HAS A RESIDUAL INTEREST. IT FEELS TO ME LIKE FOR A SUBSIDIZED LOAN, THE DHFC LOAN SHOULD HAVE PRIORITY BECAUSE YOU ARE COLLECTING FEES, UM, YOU KNOW, AHEAD OF, AHEAD OF THIS LOAN. SO ARE WE SURE WE ARE UNDERSTOOD WE SHARE IN THAT DEFERRED DEVELOPER FEES AND THE GIC AND THE BACK SPLIT? YEAH, I MEAN WE'RE PAID EVERYWHERE ALONG THE CAPITAL S STACK. SO IT'S, YOU KNOW, WE'RE, WE'RE MOVING THINGS AROUND IT, BUT I, I MEAN IT'S INCREDIBLY COMPLICATED. I'M LOOKING AT THE MODEL RIGHT HERE WITH RYAN. UH, YOU KNOW, IT'S, I MEAN, KIND OF HARD TO MAKE HEADS OR TAILS, BUT FUNDAMENTALLY, YOU KNOW, WE PARTICIPATE AT LEAST THREE OR FOUR PLACES ALONG THE DISTRIBUTIONS AND SO TRYING TO MOVE THINGS AROUND, I DON'T KNOW THAT THERE WOULD BE A NET BENEFIT TO US ADD ADDITIONAL COMPLEXITY 'CAUSE WE'RE BEING TAKEN, IF WE MOVE IT UP, THEN OTHER POSITIONS THAT WE'RE IN ARE TAKEN OUT. YEAH. OTHER OR TAKEN FURTHER DOWN IN PRIORITY DOWN. I I I, I GUESS IF THE, IF THE SOCIAL REPAYMENT IS SOME KIND OF REFI AT THE END OF THE DAY, YOU KNOW, IT'S ALL GOING TO HAPPEN SIMULTANEOUSLY GIVING US WATERFALL PRIORITIES SHOULDN'T REALLY MATTER TO LDG. YEAH, I MEAN WE'RE PARTICIPATING IN CASH FLOW. UNDERSTOOD. UNDERSTOOD. I'M JUST, JUST IN TERMS OF THE STRIKE PRICE THAT THE CITY SIGNS UP FOR, FOR SUBSIDIZED INTEREST RATE BELOW THEIR SENIOR FINANCING, IS THERE AN OBJECTION IN GIVING US PRIORITY OVER LD G'S PROTA? WELL THERE'S OBJECTION FROM ME. ASKING I CERTAINLY OBJECT, BUT I MEAN, DON'T THINK, I DON'T THINK IT'S ASKING. I DID ASK. WELL, AND I MEAN THE OTHER ADVANTAGES, WE CONTINUE TO ACCRUE INTEREST, RIGHT? I MEAN THE, THE OTHER FEES ARE ONE TIME FEES. UH, SO IT MAY ACTUALLY BE TO OUR STRATEGIC BENEFIT TO CONTINUE TO ALLOW THAT TO GENERATE ADDITIONAL FUNDS RELATIVE AGAIN TO THE 4.25% WE GETTING BOND POOL. I MEAN THIS IS NOT GUARANTEED INCOME, BUT IS INCOME THAT THEORETICALLY WE SHOULD RECEIVE INVARIABLY AT SOME POINT IN TIME. UM, AND SO JUST TO GET THAT PAID BACK FURTHER FASTER AND THEN TO HAVE A SLOWER REPAYMENT ON OUR ONE TIME FEES. UH, AGAIN, I DON'T THINK THAT THERE'S TRUE BENEFIT THERE. OPINION. REMIND ME, I'M SWIMMING IN PAPER RIGHT NOW, BUT IS THIS THE ONE WHERE WE HAD 50% CASH FLOW SPLIT? [00:55:01] SO WE'RE, OH GOD, YEAH. LOOK WE'RE GOING 50 50 WITH OUR PARTNER. THAT'S NOT COMMON. SO WHAT DO YOU THINK ABOUT THAT? YOU WANT 50 ? UM, ANYWAYS, SO GOING 50 50, UH, THAT'S PRETTY GENEROUS TO THE HSCI THINK DEVELOPERS 75, YES. THAT SAID HE'S NOT PUT TO PARTNER . AARON BRAXTON AND RYAN I THINK HAVE, UH, DONE A GOOD ONE ON THIS ONE. . SO, WELL LAST THOUGHT FOR AARON IS, YOU KNOW, SHARING THAT WE HAVE THE RIGHT TO CURE IF SOMETHING GOES WRONG AND WE HAVE A PRIORITY POSITION IN TERMS OF, YOU KNOW, OUR, YOU KNOW, IF SOMETHING PERFORM, PREFACE SPAN THAT WE CAN CURE AND TAKE OVER OPERATION, WHATEVER WE WANNA DO, IF WE DECIDE THAT'S THE BEST OPTION, I MEAN I WOULD, IT'S NOT KEY TO OUR PATIENT DEAL AS WE GP SURE. GET THE RIGHT BUT NOT THE OBLIGATION TO CURE. THAT'S TRUE. WE HAVE TALKED ABOUT THAT. SO, FAIR ENOUGH. WAIT, SORRY, WHAT WAS THE ANSWER? WE DO OR WE DON'T HAVE THE OBLIGATION TO CURE, DON'T HAVE THE OBLIGATION TO HAVE THE RIGHT, WE HAVE THE RIGHT, WE HAVE THE RIGHT, THIS IS KIND OF PARTLY WHERE I WAS GOING. I MEAN IN, IN A DEFAULT, HOW DOES THE PARA PURSUIT, LIKE WHO HAS THE OBLIGATION OR THE RIGHT TO CURE L LIKE LDG AND HFC TOGETHER? WELL, WELL INITIALLY WOULDN'T LDG HAVE THE OBLIGATION, BUT THEN WE HAVE THE OPPORTUNITY TO STEP IN OURSELVES. WE HAVE A RIGHT. WE DON'T HAVE TO EXERCISE THAT. RIGHT, RIGHT. AND WE DON'T HAVE LIABILITY. WELL IN I THINK IT'S TWO LDG ENTITIES THOUGH, RIGHT? YEAH. I MEAN THERE'S TWO DIFFERENT LDG ENTITIES. YEAH. SO I MEAN IS A RECOURSE, HOW DOES THE GOVERNANCE BETWEEN TWO PARA PURSUE THE PRIMARY? I'M SORRY. SORRY. SO WILL THERE BE SOME KIND OF INTERCREDITOR AGREEMENT BETWEEN THE TWO SUBORDINATE LENDERS? THAT, THAT'S WHAT I'M ASKING. I THINK IF, IF YOU HAD, IF YOU HAD WATERFALL PRIORITY, THEN IT, IT KIND OF BECOMES A MOOT POINT. IT WOULD BE RIGHT, THE HFCS OPPORTUNITY TO CURE FIRST. IF WE DIDN'T DO IT THEN IT WOULD, IT WOULD FALL TO LDG. BUT OTHERWISE WE WOULD NEED, WE WOULD NEED TO FIGURE OUT HOW THAT, HOW THAT GOVERNANCE BETWEEN THE COAL LENDERS WOULD WORK. DO WE HAVE UH, I THINK CF ONE I WAS GONNA SAY, WHAT ABOUT WHEN WE HAVE LIKE THE CDBG AND THE HOME? YEAH. DON'T THEY HAVE SOME KIND OF CREDITOR AGREEMENT? SO, UM, YEAH, I MEAN I THINK IT'S A FAIR POINT. SO NEED TO KEEP AN EYE ON WHEN WE DO THE FINAL DOCUMENTATION TO BRING THAT BACK, UM, AS TO HOW IT FEEL, WHAT DOES THAT LOOK LIKE IN TERMS OF A DEFAULT SCENARIO? IT'S GOT WHAT RIGHTS, BUT UM, WE CAN CERTAINLY LOOK AT RADER TYPE ARRANGEMENTS. WHAT TYPE OF REMEDY PROVISIONS ARE IN THE LPA AS AMONGST PARTNERS? THAT'S ANOTHER GOOD POINT BECAUSE THAT OTHER LENDER IS NOT THE LOAN DOCUMENT TODAY. WE DON'T EVEN HAVE THAT AT THIS POINT. NO, WE WE'RE MONTHS. YEAH, TO THE EXTENT IT SOMETHING YOU GUYS LOOKED, YOU WANNA REPORT WITH THAT THERE BE OBVIOUSLY BE A FINAL OPPORTUNITY YOU GUYS TO APPROVE THE LOAN DOCUMENTS. IT'S OBVIOUSLY SO AMONGST ANYTHING ELSE YOU GUYS, BUT I THINK SOME OF, SOME OF THAT LANGUAGE MIGHT APPLY. I MEAN THERE ARE FEDERAL GOVERNMENT REQUIREMENTS WHEN THE CITY DOES THOSE TWO SEPARATE LOANS ON THIS THING. YEP. RIGHT? AND THOSE ARE BOTH SUBORDINATE AND SO DO YOU HANDLE THOSE WITH AN INTERCREDITOR AGREEMENT OR TYPICALLY THERE'S COORDINATION TYPE AGREEMENT, UM, OR AN CREDITOR AGREEMENT. YEAH, I GUESS DEPENDING ON THE NATURE OF THE FINANCING, BUT YEAH, WE'VE HAD THOSE ON THE DEAL WE DID, THERE WAS CREDITOR AGREEMENT. SO, UM, WE CERTAINLY DROP OF THOSE RESOURCES AND MAKE SURE WE GET WHATEVER WE NEED THE ARRANGEMENT TO THAT HE ASKED FOLKS TO SUPPORT AND LET THIS, UH, DOCUMENT, OBVIOUSLY THAT WILL COME BACK TO THIS COURT AND UH, THAT'S A GOOD POINT, DIRECTOR N AND I APPRECIATE YOU RAISING THAT SO THAT WE CAN MAKE SURE TO LOOK OUT FOR THAT. YEAH. UH, ANY OTHER QUESTIONS? OKAY, UH, I NEED A MOTION AND A SECOND PLEASE. ROBINSON AND A SECOND. SECOND. OKAY. DIRECTOR ALLEN, MOVE TO APPROVE. THANK YOU. DIRECTOR APPROVED. WAS THAT APPROVED? YES. OKAY. [01:00:01] UM, DIRECTOR MARSHALL C APPROVE, UH, TREASURER PHARAOH APPROVE. UH, DIRECTOR HINTON APPROVE. UH, VICE PRESIDENT GARCIA ING DIRECTOR ELLIS APPROVE. I APPROVE. UH, DIRECTOR ROBINSON APPROVE. DIRECTOR MOORE. UH, SECRETARY PAGE APPROVE AND DIRECTOR ZADY PROOF. OKAY. AND SEE, UH, WE HAVE DIRECTOR COLLINS ON, BUT HER CAMERA, IT'S NOT ON. PATTY, ARE YOU ABLE TO SWITCH YOUR CAMERA ON PLEASE? SO SHE WAS HERE FOR THAT WITH ITEM. OKAY, NOW, BUT THERE SHE'S OKAY. DIRECTOR COLLINS APPROVED. THANK YOU. OKAY. UM, I DON'T KNOW. NUMBER SEVEN, RESOLUTION FOR PALLADIUM BUCKNER STATION. A MULTIFAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT 8 0 0 8 ELAM ROAD, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 1 7 A. CONSIDER AN ADOPT A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH PALLADIUM USA INTERNATIONAL INC. OR A DESIGNATED AFFILIATE FOR THE ACQUISITION, FINANCING, DEVELOPMENT AND OPERATION OF PALLADIUM BUCKNER STATION A MULTIFAMILY RESIDENTIAL DEVELOPMENT. B, 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 BUCKNER STATION G-P-L-L-C AND APPROVING THE FORM OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. 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, BUCKNER STATION LANDOWNER, LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. AND D, 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, BUCKNER STATION DEVELOPER LLC AND APPROVING THE FORM AND SUBSTANCE OF A LIMITED LIABILITY COMPANY AGREEMENT AND THE EXECUTION THEREOF. OKAY. GENERAL MANAGER AND QUINTE. THANK YOU . SO WE HAVE KIM PARKER HERE FROM PALLADIUM. I'LL JUST INTRODUCE HER AND ALSO TAYLOR, ALEX, UH, WE'LL BE COMING UP HERE TO ANSWER ANY QUESTIONS, BUT JUST TO REMIND YOU ALL, WE INTRODUCED THIS IN OCTOBER. UM, THEY RECEIVED A ZONING CHANGE IN NOVEMBER. THEY'VE GOT A BOND RESERVATION END OF JANUARY, SO THEY'RE ALSO ON THE CLOCK SO CLOSE AND I THINK BY THE END OF JULY. UM, SO THE CITY IS VERY MUCH BEHIND THIS PROJECT. IT IS INITIALLY A PARTNERSHIP, NOT A PARTNERSHIP, BUT A SOLICITATION, UM, THE CITY TO REALLY POPULATE THOSE AREAS AROUND DARK STATIONS, PARTICULARLY THE STATIONS THEMSELVES, UM, TO CONTRIBUTE TO THIS WHOLE IDEA OF TRANSIT ORIENTED DEVELOPMENT AND INCREASED DENSITY AROUND THOSE, THOSE DARK STATIONS TO TAKING ADVANTAGE OF THAT, UH, WARM TRANSPORTATION WAS GENEROUS ENOUGH TO, TO PUT FORTH A PROPOSAL THAT GOT ACCEPTED. AND SO THIS IS NOT THE, THE CULMINATION OF ALL THAT. UH, AND WE WE'RE VERY EXCITED TO BE, BE PART OF THIS. UM, SO YEAH, I THINK KIM, IT'S A 300 UNIT PROJECT, I THINK 3 0 4 UNITS. SO KIM, IF YOU WANNA COME UP, UH, AND UH, BIG SHOTS WITH THE EXPIRING SQUAD. . THANK YOU AARON. PRESIDENT BOARD MEMBERS, NICE TO SEE YOU. THANKS FOR HAVING US. WE'RE EXCITED TO BE HERE. WE HAVE 108 CASE CLOSE. THANK YOU . I'M HERE TO ANSWER ANY QUESTIONS. PRESSURE ONE, ONE THING, UM, THAT AARON DIDN'T MENTION, WE ALSO GOT A RESOLUTION OF NO OBJECTION FROM CITY OF DALLAS AND WAS THE RFP WAS THAT SPECIFICALLY SOLICIT FROM DART CITY FORD APARTMENT COMPLEX ON THIS SITE? IS THAT SPECIFICALLY REQUESTED THAT ARE BEING THERE WERE SIX, UM, DARK PARKING LOTS THAT WENT OUT FOR RFP AND WE SUBMITTED, WE ACTUALLY SUBMITTED FOR TWO AND WE WERE AWARDED OF THE STATION. SO YES. OKAY. AND THESE UNITS WILL BE ALL 60%, 80% OF THE UNITS WILL BE AT 60% EVERY LEADING INCOME AND 20% [01:05:01] OF THE UNITS WILL BE AT FULL MARKET RATE. WE ALSO HAVE TWO STORY TOWN HOME UNITS. THAT'S SOMETHING UNIQUE THAT WE'RE ADDING IN THREE BEDROOM TOWN HOME UNITS. OKAY. UM, ALL OUR PRICE AND THE TAX CREDITS AT 87 50. THAT'S RIGHT. ARE YOU CONCERNED ABOUT HITTING THAT NUMBER? UM, WE'RE NOT AT ALL CONCERNED ABOUT HITTING THAT NUMBER. I MEAN, IT'S PRETTY STANDARD TO THE MARKET. BUT YOU HEARD THEM, UM, FROM JAKE THAT, YOU KNOW, WE'RE SAVING EVEN LESS, SOME MORE CURRENT DEALS. THE DEAL WORKS OUT AT 87 AND A HALF. WELL, I MEAN, I THINK OUR CONCERN IS IF YOU GET PRICE AT 80, I MEAN HOW YOU MAKE THE DEAL WORK STILL RETAILER COMES MORE ABOUT THIS, SO THERE'S NO CONCERN ABOUT THAT. WE ALREADY HAVE OUR SIGNED LOI WITH REGIONS BANK. OKAY, THERE YOU GO. SO IT'S, IT'S ALREADY SOLD . OKAY. UH, ANY OTHER, ANY OTHER QUESTIONS? THAT $15 MILLION GRANT, THAT'S JUST, THAT'S THE CITY JUST GIVING YOU THE LAND, RIGHT? NO, THEY'RE NOT GIVING US THE LAND. THEY'RE GIVING US 15 MILLION. THEY'RE GIVING YOU 15 IN CASH? CORRECT. AND HAS THAT BEEN APPROVED? NO, WE'RE, IT'S EXPECTED TO GO TO CITY COUNCIL IN APRIL, BUT WE'RE WORKING OUT THE TERMS OF OUR AGREEMENT RIGHT NOW. IT GOES TO CITY COUNCIL THIS MONTH. DID, UM, IS IT THE END OF APRIL? MIGHT BE END OF MAY. IT MIGHT BE THE END OF MAY 20. ECO DEV FIRST 15.1 MILLION IS PRETTY MUCH, UM, AGREED TO BY THE CITY AND THAT'S WHAT WE'RE, THAT'S WHAT OUR CAPITAL STACK SOURCES AND USES HAVE. THAT'S THROUGH THE EDC? THAT'S RIGHT. TAYLOR, WHAT IS THE SOURCE OF THE GRANT? YOU HERE? YES, THIS IS FROM, UH, ECO DEV ECONOMIC DEVELOPMENT. SO, UH, WE'RE IN PROCESS ANALYZING THE LOI THE SOURCE OF FUNDS IS THE, UH, HOUSING BONDS, THE GENERAL OBLIGATION BONDS FROM THE CITY THAT LOI IS BEING FINALIZED. IT. WE'LL GO TO ECO DEATH COMMITTEE. UM, I BELIEVE WE'LL HAVE TO GO TO THE ONE BEGINNING OF MAY AND THEN IT'LL GO TO COUNCIL AT THE END OF THAT MONTH. SO YOU GUYS HAVE TO CLOSE IN 180 DATES. SO, I MEAN, WE DON'T WANT TO BE A ROADBLOCK. GENERAL ANSWERS QUESTION FOR US TIGHT TIMELINE. YEAH, THEY'RE, THEY'RE VERY AWARE OF THE TIMELINE AND THEY'RE VERY MOTIVATED WORKING. YEAH, I MEAN IF IT WAS A DIRECT SOLICITATION FROM THE CITY OF DALLAS, I PRESUME THAT THEY'VE GOT THEIR DEPTH TO ROOM. WE'VE BEEN WORKING ON THIS WITH THE CITY OF DALLAS ECONOMIC DEVELOPMENT SINCE LAST AUGUST. SO THIS HAS BEEN IN THE WORKS FOR QUITE SOME TIME. IS COUNCIL MEMBER RESENDEZ FULLY SUPPORTIVE OF THIS? 100%. SO IS THE NEIGHBORHOOD, WE GOT A LOT OF LETTERS OF SUPPORT FROM THE NEIGHBORHOOD. I CAN CONFIRM I SPOKE PERCENT AS WELL. HE'S REALLY EXCITED ABOUT THIS. AND THAT NUMBER'S CHANGED A LITTLE BIT, RIGHT? BECAUSE WASN'T IT, INITIALLY IT WAS CONTEMPLATED LIKE 17, 16.8 16 SOMETHING. OKAY. SO YOU, YOU GUYS HAVE A HARD COMMITMENT FROM THE EDC? WE DO, YEAH. 16.8 0.9. UH, ANY OTHER QUESTIONS? OKAY, THANK YOU VERY MUCH. I, I DID I HAVE A QUESTION, MARCIE. OH WAIT, WHO WAS THAT? TONY? YEAH. UM, LOOKING AT THE, UH, DEVELOPMENT PLAN, UH, UP HERE, LET'S SEE, GO BACK TO, I GUESS IT'S SLIDE FOUR. UM, SO ON THE, UH, UPPER LEFT WHERE THE, UH, THAT DRIVEWAY ENTRANCE IS OFF OF WHAT, WHAT STREET IS THAT THERE? THAT'S RUNNING KIND OF LEFT TO RIGHT. THAT'S ELAM. OKAY, SO WEST IS ELAM. OKAY. SO COMING OFF OF ELAM, THAT, UH, DRIVEWAY SEEMS TO BE COMING OFF AT A, LIKE A 45 DEGREE ANGLE. IS THERE, IS THAT DEVELOPMENT PLAN BEEN FINALIZED? YEAH, BECAUSE WE'VE GOTTEN, YEAH, I'M JUST WORRIED ABOUT ICE BEING, TRAFFIC COMING, COMING OFF OF THERE AND, AND WE COULD HAVE THAT DRIVEWAY INTERSECT ELAM AT CLOSER TO A, UH, 90 DEGREE ANGLE, WHICH I THINK IS ALSO CONSISTENT WITH THE CITY STREET DESIGN MANUAL MIGHT BE A SAFER [01:10:01] DESIGN FOR PEDESTRIANS AND FOR, FOR PEOPLE THAT ARE, YOU KNOW, WITHIN THE, THE PROJECT. I MEAN, THIS WENT THROUGH A, A FULL TRAFFIC ANALYSIS BY, UH, DAVID NAVAREZ. WE WENT BACK AND FORTH WITH HIM UNTIL THIS DESIGN WAS FINALIZED. SO THE, THE ANSWER IS NO. IS THAT WHAT YOU'RE SAYING. RIGHT? I DIDN'T HEAR THAT THE CITY PUSHED FOR THIS SPECIFIC DESIGN. IT'S EXPENSIVE TO HELP. IT'S, AND YOUR HONOR, THEY, THEY PUT, THEY PUSHED, THEY PUSHED FOR, SORRY, YOU'RE TELLING ME THAT MR. NAVAREZ PUSHED FOR A 45 DEGREE, UH, BRILEY COMING OFF OF ELAM? IS THAT, IS THAT WHAT YOU'RE TELLING ME? 45. OH, TONY, ARE YOU TALKING ABOUT FIRST OR THE SECOND COMING UP HERE TO JACK? YEAH, THE ONE RIGHT BY, THAT'S LIKE RIGHT BY THE RAILROAD TRACKS, THE, THE DART RAIL CROSSING. SO IF YOU, IF YOU'RE GOING EASTBOUND ON ELAM, THE WAY IT LOOKS IS YOU CAN TURN PROJECT GOING LIKE, YEAH, 40 MILES AN HOUR. THAT ALREADY EXISTS RIGHT NOW. THAT'S CURRENTLY WHAT'S THERE RIGHT NOW, I BELIEVE. BUT I MEAN, WE HAVE DANGEROUS ARE YOU GOING TO, CAN YOU YOU CHANGE THAT BECAUSE WE HAVE DANGEROUS INFRASTRUCTURE ALL OVER THE CITY? WE HAVE. THAT'S ONE OF THE REASONS WHY WE HAVE ONE OF THE HIGHEST TRAFFIC FATALITY RATES IN, IN THE UNITED STATES. UM, SO IS THERE A WAY TO, THE DRIVE IS EXISTING AND IT, THAT PARKING LOT WILL ONLY UTILIZE BY DARK FIBERS. OUR MAIN ENTRANCES WILL BE THE SECOND, THE 90 DEGREE. OH, OKAY. SO, SO THIS IS THE ALL RIGHT. IT'S RIGHT. WE DON'T HAVE, YEAH, YEAH, I UNDERSTAND. UM, BUT YOU KNOW, THE PROBLEM WITH IT IS, YOU'RE TELLING ME IT'S NOT KEY PART OF THIS PRO IS THAT VEHICLES CAN ENTER THAT, CROSS THAT SIDEWALK WHERE THERE'S A PEDESTRIAN CROSSING THERE. I, I'M NOT FULLY UNDERSTANDING YOUR QUESTION. AND THEY CAN RIGHT HOOK INTO PEOPLE THAT ARE CROSSING THAT. THE QUESTION IS THAT IT'S A ONE WAY WHAT'S DEPICTED THERE? THAT DRIVEWAY? IT'S ONE WAY, PARDON ME? IT'S JUST ONE WAY IN. YOU CAN ONLY GO ONE WAY OFF OF ELAM AND THEN EXITING ONTO BUCKNER. OKAY. SO YOU'RE COMING ONE WAY IN GOING EAST ON ELAM AND THEN SOUTHEAST INTO THIS, INTO THIS PARKING LOT AT A, YOU'D BE ABLE TO COME IN AT A PRETTY HIGH RATE OF SPEED RIGHT THROUGH WHERE THE PEDESTRIANS ARE WALKING ALONG, WHERE THAT SIDEWALK IS EXPLANATION. ARE YOU LOOKING AT THE IMAGE? YES. YEAH, I'M LOOKING AT THE IMAGE UP AT THE UPPER LEFT CORNER JUST TO THE EAST OF THAT DARK RAIL CROSSING. OKAY. TIM'S SHOWING THIS IS THE BUS LANE ONE WAY. OH, IT LOOKS LIKE A PARKING LOT. AND THAT APPEARS TO BE A PARKING LOT WHERE YOU'RE DETECTING THERE. AND SO, SO VEHICLES ARE COMING HIGHLIGHTED. YEAH. SO FURTHER TO THE LEFT OF THAT, SO THE NEXT, NEXT DRIVEWAY OVER TONY, KIM HAS, YES. WE'VE HIGHLIGHTED THE SECTION TWO. RIGHT. SO THE NEXT DRIVEWAY TO THE, TO THE LEFT OF THAT. SO TO THE LEFT OR THE ONE THAT'S HIGHLIGHTED THIS ONE IS WHAT YOU'RE TALKING ABOUT? UH, LET'S SEE. THIS ONE. YES. YEAH, THAT ONE. EXACTLY. IT'S VERY HARD TO THIS, THAT ONE. JUST TO BE CLEAR, THOSE PARKING LOTS ARE EXISTING. THAT ONE THAT YOU'RE REFERRING TO, THAT TRIANGLE SHAPED ONE. AND THOSE ARE NOT THE PARKING LOTS FOR THE DEVELOPMENT. WE HAVE STRUCTURED PARKING GARAGES IN THE DEVELOPMENT. THOSE ARES PARKING LOTS THAT WILL CONTINUE TO BE USED FOR DARK RIDER. IS THAT OKAY? SO THAT'S NOT SIDE THE BUILDING ENVELOPE. ALRIGHT. OKAY. ALL RIGHT. WELL, THAT, THAT'S, THAT SOLVES THE, THEN THAT'S AN EASY ANSWER. 'CAUSE IT THE WAY AND IT'S NOT, NOT OUR ISSUE. YES. YEAH. YEAH. WE WENT THROUGH THE, OUR COMMITTEE A WHILE AGO LAST YEAR, UM, BEFORE WE EVEN WENT TO TRAFFIC DEPARTMENT. SO THIS HAS ALL BEEN APPROVED BY UDPR. OKAY. WELL THAT'S DIFFERENT FROM, YOU KNOW, THE, THERE'S, THERE'S A, WHAT I'M GETTING AT, BUT IF YOU'RE TELLING ME IS IT'S NOT A PART OF THE SITE, THEN WE DON'T EVEN NEED TO TALK ABOUT IT. SO IT'S IS IT, IT'S EITHER PART OF THE SITE OR IT'S NOT. SO IF IT'S NOT PART OF THE SITE, THEN IT'S NOT, THAT'S THAT'S DART PART THAT IS REMAINING. OKAY. [01:15:01] SO THEN IT'S NOT OUR ISSUE, IT'S NOT SITE. OKAY. ALL RIGHT. OKAY. ANY OTHER QUESTIONS? I MOTION OKAY. I HAVE A MOTION BY DIRECTOR ZADY SECOND. OKAY. WHO WAS THAT? DIRECTOR? ALLEN. THANK YOU. DIRECTOR ALLEN. OKAY. AND DIRECTOR ALLEN, ARE YOU FOR OR AGAINST? I AM FOR OKAY. DIRECTOR. HELLO? YOU STILL THERE? CAN YOU HEAR ME? YEP. YEAH. THANK YOU. IT'S APPROVED. THANK YOU. UH, DIRECTOR MARSHALL. C APPROVED. WE DIDN'T HEAR THAT. YOU SAID A YES. YES. APPROVE. SORRY. THANK YOU. UH, TREASURER PHARAOH APPROVE, DIRECTOR COLLINS APPROVE. UH, DIRECTOR HINTON APPROVE. VICE PRESIDENT GARCIA APPROVE. DIRECTOR ELLIS APPROVE. I APPROVE. DIRECTOR ROBINSON APPROVE. DIRECTOR MOORE APPROVE. UH, SECRETARY PAGE. APPROVE. APPROVE. BUT YOU WANNA CRITICIZE DART FOR THE ADJOINING, UH, PARKING LOT. DIRECTOR XAVIER? I APPROVE. OKAY. . IT'S A BAD DESIGN. OKAY. UM, ITEM NUMBER EIGHT. THIS IS A RESOLUTION FOR THE BRIDGE AT LOOP 12, A MULTI-FAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT 1100 NORTH WALTON WALKER BOULEVARD, DALLAS, DALLAS COUNTY, TEXAS 7 5 2 1 1. AND THIS IS TO 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 SUBORDINATE LOAN FINANCING FOR THE BRIDGE AT LOOP 12 IN MULTI-FAMILY RESIDENTIAL DEVELOPMENT TO BE LOCATED AT 1100 NORTH WALTON WALKER BOULEVARD IN THE FORM OF A LOAN TO LDG, THE BRIDGE AT LOOP 12 LP AS BORROWER, NOT FROM THE DHFC, BUT FROM RICK HOUSE DESIGN, LLC. UM, SO, UH, GENERAL MANAGER QUINTO, YOU WANNA DESCRIBE WHY THIS IS KIND OF BACK BEFORE US? YEAH, SO WE HAVE, I'VE SEEN THIS SEVERAL TIMES. THE ONE CHANGE ON THIS IS THAT, UH, DURING DUE DILIGENCE WE RECEIVED SOME SOIL REPORTS, LIKE THERE'S GONNA BE A LITTLE MORE EARTH WORK NEEDED THAT PREVIOUSLY IMAGINED. SO THEY DID THE RESPONSIBLE THING AND ACCOUNT ACCOUNT FOR THAT. UM, I THINK, JAKE, COULD YOU COME UP AND DESCRIBE EXACTLY, UM, WHAT THE REQUEST IS? SURE. YOU COULD DO IT BETTER THAN TONIGHT. OH, NO. YEAH. I'LL ONLY GIVE THE QUICK AND DIRTY ON SOILS INTENDED . YEAH. SO YEAH, AARON, GET YOU IN A MOMENT AGO. BUT THE STORY IS THAT WE HAD ORIGINALLY IN THE CONSTRUCTION BUDGET, WE HAD ACCOUNTED FOR AN ALLOWANCE, UH, TO TUNE ABOUT $4 MILLION SOIL. SO WE THOUGHT WE KNEW WHAT WE KNEW, BUT WE WEREN'T A HUNDRED PERCENT SURE. AND SO IT'S AARON'S POINT, WE DID A LITTLE BIT MORE DUE DILIGENCE, REALLY MORE SO IN EFFORT TO HER BEING POTENTIAL ISSUES WHERE WE GOT IN THE FIELD AND FOUND SOMETHING THAT WAS DIFFERENT THAN WHAT WE WERE EXPECTING. AND SO, UM, THE GOAL WAS TWOFOLD, WAS ONE, TO REALLY PUSH DOWN THAT ALLOWANCE NUMBER, UH, REALLY TO EITHER ELIMINATE OR PUSH IT DOWN TO THE EXTENT THAT WE COULD INCLUDED IN THE BUDGET AND, UH, JUST ELIMINATE THE OPTION FOR HOW IT'S ALL GATHERED. SO, UM, WE DID ALL THAT. WE'VE BEEN ABLE TO BEAT IT DOWN. YOU KNOW, SIMILAR TO KIND OF SOME OF THE EXAMPLES I OUTLINED WHEN WE TALKING ABOUT KEYS A MINUTE AGO, THROUGH THAT SAME PROCESS, SIMULTANEOUSLY, YOU KNOW, LENDER AND INDUSTRIAL BEAT US UP ON OPERATING EXPENSES, INTEREST RATES ARE UP AND DOWN. UM, AND SO I THINK ACTUALLY FROM THE BEGINNING WE MAY HAVE BEEN CONTEMPLATING, UH, A SMALL, WHAT WE CALL A RING HOUSE NOTE, WHICH IS REALLY JUST WHAT WE TAKE OUR ARCHITECT FEE IN, DEFER INTO THE DEAL WITH THE SUBORDINATE NOTE. UM, BUT FOR ONE REASON OR ANOTHER, I COULD BE MISREMEMBERING IT. WE JUST DIDN'T HAVE COMPLAIN IT WHEN WE ORIGINALLY BROUGHT IT TO YOU GUYS. SO, UM, IT'S JUST SOMETHING THAT NEEDS TO BE ACCOUNTED FOR. I WILL TELL YOU THAT, UM, YOU KNOW, I GRABBED AARON RIGHT BEFORE THE MEETING STARTED, AND SO IT'S MY UNDERSTANDING THAT THE NOTE, I THINK WE'D ORIGINALLY PROPOSED, OR I'LL REFER TO AS A CUSHION AMOUNT OF $4 MILLION, AND REALLY JUST DID THAT SO THAT WE [01:20:01] NEEDED MORE THE LAST MINUTE WE HAD TO COME BACK FOR A BOARD MEETING. BUT I GUESS IT'S MY UNDERSTANDING THAT YOU GUYS ARE WANTING TO PUSH THAT DOWN TO TWO. IS THAT RIGHT? SO LET ME, WE'LL JUST KIND OF GET INTO IT RIGHT HERE. I I JUST WANT TO LET YOU GUYS KNOW AND GIVE YOU A LITTLE BIT MORE INSIGHT. IT'S KIND OF THE WHY AND THE MAP BEHIND IT. SO WHEN WE DO THAT, AND IN PARTICULAR ON THIS DEAL, YOU KNOW, I THINK THE, THE R HOUSE FEE TO LDG IS, IS TO THE TUNE OF ABOUT MAYBE A SHADE OVER $2.8 MILLION. AND SO, UH, I CAN TELL YOU RIGHT NOW, WE WON'T DO A SHIELD, BUT WE HAVE TO DO A SUBORDINATE NOTE THAT EXCEEDS THAT AMOUNT BECAUSE IT MEANS THAT WE'RE HAVING TO COME OUT THE POCKET DEAL. SO, UM, BY WAY OF EXAMPLE, YOU KNOW, SAY WE GET INTO A SITUATION WHERE, YOU KNOW, ALL OF A SUDDEN ENTERPRISE NOT TO PICK ON NOTE, BUT JUST USING AS AN EXAMPLE, IS BEATING US UP AT THE LAST MINUTE AND SAY, HEY, WE DON'T LIKE YOUR REPAIR AND MAINTEN AND, UH, IT NEEDS TO BE INCREASED. IT CUTS OUR LONG SIZING AND THEN ALL OF A SUDDEN WE'RE 2.8 PER HOUSE FEE. SUBSEQUENTLY THE SUBORDINATE NOTE GOES TO 3.2 MILLION. WELL, WE'RE NOT GONNA CUT A CHECK FOR $100,000 BILLS AND WE'RE ALREADY FORKING OVER A BUNCH OF FEES JUST TO GET TO THE FINISH LINE ANYWAY, IN THAT SITUATION, WE'RE GONNA DIG OUR HEELS IN TO SAY, HEY, THIS IS WHAT IT NEEDS TO BE. LET'S FIGURE OUT A WAY TO, YOU KNOW, MAYBE REDUCE SOME OTHER CONSTRUCTION COSTS FIRST, SOME MORE DEVELOPMENT FEE, WHATEVER IT IS. AND SO I THINK AS I STAND UP HERE, UH, I'M HAPPY TO ANSWER QUESTIONS, TALK ABOUT THE DEVELOPMENT, BUT ONE OF THE THINGS I JUST WANNA GET OUT IN THE OPEN IS, I THINK JUST REAL POINT BLANK, WE'RE WE'RE GONNA NEED TO INCREASE, UH, THE AMOUNT OF THE RESOLUTION PREFERABLY TO FREE. IF YOU GUYS SAY, HEY, OKAY, WE'LL HEAR WHAT YOU'RE SAYING. UH, YOU KNOW, AND ASSUMING COUNCIL'S OKAY WITH IT, WE, WE COULD GET ON BOARD WITH STANDARD AMOUNT NOT TO EXCEED WHATEVER THE BREAK HOUSE FEES GONNA BE. UM, BECAUSE RIGHT NOW TOO, AND THAT'S LEAVING $800,000 IN THE TABLE, ULTIMATELY COULD BE DETERMINED IF WE'LL NEED IT OR NOT. 'CAUSE WE'RE JUST NOT AT THE CLOSING TABLE YET TO KNOW EXACTLY WHERE THE NUMBERS ARE GONNA SHAKE OUT. BUT I JUST, UH, I DON'T WANNA UNINTENTIONALLY BACK MYSELF INTO ORDER THEN HIS NUMBERS MOVE AND RATES MOVE OVER THE NEXT COUPLE WEEKS. YOU KNOW, WE FIND OURSELF IN A SITUATION WHERE WE'RE HAVING TO SCRAMBLE AND COME BACK TO THE BOARD MEETING AND MAKE THE SAME AS. SO THAT'S A LOT OF INFORMATION. I KNOW IF ANY OF IT MAKES SENSE, BUT, UH, I, I WANNA START THE CONVERSATION THERE. WELL, UM, I THINK MY PERSONAL ISSUE IS THAT I, IS THAT THIS BOARD HAS A POLICY THAT WE WILL NOT VOTE ON MATTERS IF WE DON'T HAVE A PRO FORMA TO SUPPORT THAT VOTE SO THAT WE CAN SEE HOW EVERYTHING SHAKES OUT. AND AS YOU CAN TELL FROM PREVIOUS DISCUSSIONS DURING THIS MEETING, UH, OUR BOARD OF DIRECTORS, UH, CAREFULLY REVIEWS THOSE PROFORMAS AND, UH, AND WE DON'T HAVE A PROFORMA AT THIS, UH, 2.8 TO 3 MILLION SUBORDINATE LOAN. IT'S AS I UNDERSTAND IT. WELL, AND, AND JUST TO BE CLEAR, I MEAN, THE ASK IS NOT FOR A LOAN IN THAT THE ASK IS FOR A SUBORDINATE FINANCE, BUT IT'S, IT'S ALSO NOT, IT'S JUST A NOT TO EXCEED AMOUNT, AND THAT'S NOT, THAT'S TO SAY THAT I CAN USE ANYTHING LESS THAN THAT. IT'S NOT SO, YOU KNOW, I, I DON'T KNOW, AND I WON'T KNOW IF WE'RE GONNA NEED $10 OR, YOU KNOW, 2.89 WHATEVER MILLION DOLLARS OF THE FULL FEE UNTIL WE GET TO THE . SO I THINK REALLY ALL I'M ASKING FOR IS JUST TO, TO GO THAT DIRECTION JUST SO WE'VE GOT THE FLEXIBILITY, UH, IF WE MOVE DOWN THE LOAN OR MOVE DOWN THE LINE, AND THEN I KNOW THE MONEY IS GONNA BE PAID TO LDG REGARDLESS, BUT JUST GIVE US FLEXIBILITY TO INCREASE THAT LOAN THAT BE INCREDIBLY BENEFICIAL BECAUSE FRANK WOULD , UH, WHERE YOU SAY SOMETHING, RYAN, I JUST MAKE SURE I UNDERSTAND IT, WAS THE DIFFERENCES BETWEEN WHAT'S GOING, CATCHING PAID VERSUS DEFERRED, AND I MEAN, THE TOTAL AMOUNT IS GOING TO BE WHAT IT IS AND IF THERE'S MORE DEFERRED THAT PRODUCES THE SUBORDINATE LOAN, IF THERE, YEAH, I MEAN THE, THE R HOUSE FEE, HE PUT QUOTES AROUND IT BECAUSE I DON'T KNOW IF PEOPLE KNOW ABOUT BRICK HOUSE OR WHAT IT ALL IS AND HOW IT'S FILLED WITH, BUT AT ANY RATE, THE RICK HOUSE FEE, UH, JUST FOR A SAKE CONVERSATION SAKE AND USE IT AROUND NUMBERS 2.8, THAT NUMBER, THAT FEE AMOUNT CHANGES WITH THE COSTS, UH, INSTRUCT. NOW WE'RE PRETTY PINNED DOWN AT THE POINT, I DON'T EXPECT THE FEE AMOUNT TO CHANGE ITSELF. UM, BUT THE LOAN AMOUNT IS DIRECTLY DEPENDENT UPON HOW MUCH RICK . SO I GET THAT. BUT I GUESS, I GUESS OUR CONSIDERATION, THE WAY I'M THINKING ABOUT IT IS THAT ANY SUBORDINATE FINANCING INCREASES RISK, YOU KNOW, AS DIRECTOR ROBINSON WAS POINTING OUT, INCREASES RISK TO THE PROJECT AS A WHOLE. RIGHT. AND SO, UM, SO, SO WHEN WE REVIEWED THE PROFORMA AND APPROVED THIS DEAL, THAT WASN'T IN THERE. THERE WAS THE FEE TO RICK HOUSE WAS IN THERE, BUT NOT THIS SUBORDINATE LOAN. RIGHT. SO I I DON'T THINK THAT'S TRUE, BUT I THINK THAT THERE, THERE'S A SUBORDINATE [01:25:01] LOAN IN THE UNDERWRITING THAT WE PROVIDED. IT MAY NOT BE LABELED AS RICK HOUSE NOTE. IT MAY NOT GO INTO DETAIL ABOUT WHERE THAT MONEY'S COMING. NO. SO, OKAY. I GUESS I WILL ASK MAYBE BRAXTON, IF SO, IF WE HAD ALREADY APPROVED A SUBORDINATE LOAN, THEN WHY DID IT EVEN HAVE TO COME BACK? NO, WE DIDN'T. WE DID NOT APPROVE A SUBORDINATE LOAN. THE QUESTION IS, BUT HE'S SAYING IT WAS IN THE UNDERWRITING. IT'S IN THE UNDERWRITING. IT WAS IN THE UNDERWRITING. BUT WE DIDN'T SPECIFICALLY, HE'S SAYING IN THE ORIGINAL PROFORMA IT WAS IN THE PROFORMA, BUT WE DIDN'T ACTUALLY SPECIFICALLY APPROVE A SUBORDINATE LOAN. CORRECT. RIGHT. THAT'S WHY WE'RE BACK IS BECAUSE, OKAY, THIS LOAN WASN'T A PART OF THE FINANCING WHEN WE CAME PROVIDING. OKAY, SO IT'S CHANGING THE FINANC. SO THE QUESTION, BUT IT'S NOT CHANGING THE PROFORMA OR HE'S SAYING NOT THAT, I MEAN, IT WASN'T REALLY IN THE PROFORMA AS A REPAYMENT 'CAUSE IT'S SUBJECT TO CASH CASH FLOW. THE LOAN REPAY THE DEFERRED FEE REPAY SIGNED AND WE WERE SEEING DRAW FROM YES. THE DEFERRED DEVELOPER FEE WAS NOT EVEN NO . OH, WELL, I MEAN THAT YES. IN THE PROFORMA THAT I SENT YOU ON FRIDAY. RIGHT. WELL, I DON'T LIKE GOT IT IN FRONT OF YOU, BUT I DON'T, I CAN'T IMAGINE THAT THAT WAS WE THAT NO, I MEAN WE, WE WOULD NEVER DO A LOAN. WE'RE NOT, I MEAN, WE TALKED SAME CONCEPT. NO, I UNDERSTAND. I I I'M NOT CONFUSED ABOUT YEAH. HOW THE SUBORDINATE LOAN WOULD WORK. YOU HAVE TO CLOSE, UH, THREE WEEKS. WE'VE GOT CLOSING DATE. VICTOR, YOU HAVE TO GO TO COUNCIL FOR THIS. ARE YOU DONE FOR THE NOTE? FOR THE NOTE? NO, WE DON'T. OKAY, SO, SO YOU LOSE THE RESERVATION. IF WE DON'T, WE WON'T LOSE THE RESERVATION. BUT I MEAN, AT, AT THIS JUNCTURE, I MEAN, ANY DAY THAT EXCEEDS PAST THE PROJECTED CLOSING JUST OPENS FORTH FOR ME. SCHOOL, THERE'S INTEREST RATE . SO YOU'RE LOCKED, SAY YOU RATE EXISTENCE RATE, HAVE YOU RATE LOCKED? WE HAVE NOT RATE LOCKED BECAUSE I'M HERE AND SO I WANNA MAKE SURE THAT WE , SO YEAH, WE'RE NOT RATE IS THIS A LOW, YOU DON'T RATE LOCK UNTIL LIKE THE DAY BEFORE OR SOMETHING LIKE THAT? NAH, IT'D BE LIKE A WEEK BEFORE THEY, THEY CAN ACTION. THEY'LL SAY A WEEK. THEY, I KNOW FOR A FACT THEY TWO WEEKS, BUT I DON'T, WE'RE NOT GONNA DO THAT PREMATURELY UNTIL THIS, WELL, I GUESS I NEED TO HAVE A BETTER UNDERSTANDING OF WHETHER WE WHETHER THIS DEVIATES FROM OUR APPROVED PROFORMA OR NOT. WHAT WOULD THE ANSWER BE? IT'S, IT'S INCLUDED IN THE SOURCES OF THE PROFORMA THAT IS UP ON THE COLLABORATIVE SITES AS OF RIGHT NOW AND WOULD HAVE TO, WHAT, WHAT I DID, WHAT I SAID TO YOU, MARCY, IT KIND OF SHOWED JUST THE REPAYMENT OF THE LOAN, WHETHER IT IS THE ASSUMED AMOUNT IN THE LOAN DOCUMENTS, WHICH IS THE $1.6 MILLION RIGHT NOW MM-HMM . OR WHAT WAS THE MAX LOAN THEY SHOWED, WHICH IS 3.1, WHICH WOULD ACTUALLY MAX ABOVE THE RIGHT, BUT THE, AND SO THE DIFFERENCE MAINLY WOULD, IT WOULD PUSH OUT THE PARTICIPATION FOR THE HSC OF THE CASHFLOW SPLITS. WHAT I'M ESTIMATING FROM LOOKS LIKE YEAR 14, IF IT IS THE LOWER AMOUNT INTO YEAR SIX YEARS WHERE FUNCTIONAL BE REPAID, 80% CASHFLOW WOULD BEGIN THEN. SO IT WOULD BE A LESSER FEE TO THE HFC THROUGH THE CASH FLOW CASE WAS LARGER LOAN OVER A LARGER. OKAY. AND THE, AND WHAT YOU WERE BASING THAT ON WAS A SUBORDINATE LOAN OF WHAT AMOUNT? 1.6 MILLION VERSUS 3.10, OKAY. SO YOU HAD DONE IT TO 3.1? YES. OKAY. WE WON'T NEED TO RIGHT, RIGHT. LIKE STATED, THEY'RE NOT GONNA GO ABOVE THE BREAKOUT SPEED. OKAY. SO, SO, SO THE MOTION THAT WILL BE ON THE FLOOR IS TO, UM, SHOULD WE JUST SAY 2.8 OR YOU, YOU WANT THE MOTION ON THE FLOOR TO BE THAT 3.1? I'M ALL ABOUT ROUND NUMBERS . SO I, I CAME UP HERE RIGHT AND SAID, LET'S JUST DO THREE MINUTES, CALL IT DAY THREE. OKAY. SO, SO THE MOTION AS I UNDERSTAND IT, IS TO APPROVE THAT THERE COULD BE SUBORDINATE FINANCING OF UP TO $3 MILLION, RIGHT? IS THAT CORRECT? THAT THAT WILL YES. AND THAT WILL GIVE US MORE THAN ENOUGH QUESTION THAN, THAN THIS IS WHAT, AND THEN SO THAT EVERYONE ON THE BOARD UNDERSTANDS BREXTON IS SAYING THAT, THAT, THAT, THAT WILL PUSH OUR, UM, CASH FLOW PARTICIPATION YEAR. WE'D ACTUALLY START GETTING CASH FLOW FROM YEAR 14 TO YEAR 16. SO ARE ADDITIONALLY THE HSC AND, AND OTHER, YOU'RE SPLITTING A PARTNERSHIP MANUAL FEE, UM, THAT IS ABOVE THE, OF THE LOAN IS THAT DEVELOPMENT, WHICH YOU WOULD'VE, THAT APPROVED FEE THAT WOULD BE PAID DEFERRED DEVELOPMENT FEE IS PAID OFF CASH. 12 OR 13. OKAY. IS THERE ISSUE LEGALLY, I, WE APPROVED THE DEAL BEFORE. WE'RE GONNA GET CASH FLOW AT 14. THAT'S WHY THEY HAVE TO COME BACK. OH, OKAY. THAT'S WHAT WE'D BE APPROVING TODAY. THIS IS THE ONLY THING THAT'S ON THE TABLE. WE'VE ALREADY [01:30:01] MATERIAL CHANGE TO THE, TO THE ECONOMICS OF AGENCIES. WE HAVE TO SHOW GUYS AND SAY, ARE YOU OKAY? I MEAN, JUST UNDERSTAND IS IT'S, IT'S BASICALLY THERE'S BEEN AN INCREASE IN THE SITE WORK BUDGET. IS THAT REALLY WHAT THIS IS ALL ABOUT? YES, SIR. YEAH, THAT'S, THAT'S CORRECT. MARC SAYING ON THE, IT'S LOADED UP ON THE CHAPMAN SIDE, IT HAS DEVELOP A FEE DEFERRED. I MEAN, NOT TO DEVELOP THE FEE, THE, UH, ARCHITECT FEE IT IS IN THERE. OH, OKAY. OKAY. SO IT HAS BEEN, THERE HAS BEEN UNDERWRITING, IT HAS BEEN SUBMITTED TO US. OKAY. OKAY. I DID LOOK AT IT . OKAY. BUT, UM, YEAH. WELL, THANK YOU FOR DESIGNATING THAT. DIRECTOR, ALICE. YEAH. UM, BUT IT IS ON THE, BUT IT IS ON THE, IT IS ON THE SOURCES. IT'S 3.1. OKAY. BUT WE'RE GONNA SAY THREE FOR THIS MOTION. WE NEED TO BE CLEAR ON THE MOTION. RIGHT. I WANNA BE CLEAR AND WE'LL GET THE RESOLUTION TO REFLECT WHAT IS SAID IN THE MOTION. OKAY. ALL RIGHT. SO DO I HAVE A MOTION AND A SECOND I'LL MOVE DIRECTOR ALICE. AND DO I HAVE A SECOND? CAN I ASK ONE MORE QUESTION BEFORE WE GET TO THAT? YES. , IS THERE A LIMITATION ON WHAT THIS CAN BE SPENT ON? OR YOU WERE SAYING, HEY, THIS IS FOR SITE WORK COST OVER RUNS. IS IT TO BE LIMITED TO THAT OR IS IT GONNA BE A GENERAL CONTINGENCY IN YOUR MIND? I WOULD CONFIRM THAT WE, UM, I'VE BEEN ON YOUR SIDE OF THIS. UNDERSTAND. I I WOULD TELL YOU THAT, UH, I MEAN IT'LL BE DRAWN ON LIKE SOURCE OF CONSTRUCTION USED FOR GENERAL CONSTRUCTION COSTS, WHETHER IT BE SITE WORK, WHETHER IT BE FRAMING, WHETHER IT BE ANCY. SO YOU JUST DON'T WANT TO HAVE THAT SPECIFIC BUCKET SEPARATED OUT TO HAVE TO PAY IT FOR THAT S THEORETICALLY IT COULDN'T, IT JUST MAKES A HECK OF A LOT. YEAH. IT'S JUST A, JUST A TO JUMP THROUGH. EXACTLY. THAT'S WHAT I THINK. SO WE'VE APPROVED, WE'VE APPROVED, WE'VE APPROVED EVERYTHING. YEAH. LIKE WE GOT DOCUMENTS AND THIS, THIS IS JUST A, THIS IS THE ONLY THING. IT'S CHANGE. YEAH. WE'RE CLOSING. YEAH. YEAH. . OKAY. ALRIGHT. MADAM, MADAM, PRESIDENT, MADAM PRESIDENT, I HAVE A, I HAVE ONE MORE QUESTION. OKAY, MAYOR. UM, JAKE, MY RECOLLECTION IS THAT THIS THING WAS GONNA HAVE A CONNECTION BACK TO THE NEIGHBORHOOD. WE'D TALKED ABOUT THAT BEFORE. WHAT, WHAT, WHAT HAPPENED THERE? I CAN'T, YOU TALKING ABOUT THE PEDESTRIAN. CAN YOU REFRESH OUR AND THEN YEAH. INTO THE NEIGHBORHOOD? YES. YEAH. I, I'M, I'M, I'LL JUST APOLOGIZE. I, MY COLOR SITE PLANS ARE JUST NOT VERY GOOD. THEY'RE, SO THE ARCHITECTS SO CAUGHT UP IN PICTURES AND NOT ACCURACY, BUT YEAH. BRING A LOT OF FEES TOO. IF YOU'RE LOOKING AT, IF YOU'RE LOOKING AT THE SITE PLAN'S ON THE PRESENTATION, IT PROBABLY DOESN'T SHOW PARTICULAR CONNECTION OR PEDESTRIAN CONNECTION FOR THAT MATTER AT THE REAR OF THE SITE ON THE EAST END. BUT THAT WILL CONNECT THE STREET IS NORTH TATU, UH, THERE, THERE WILL BE, YEAH, THAT'S RIGHT. POSITION CONNECTION. AND I CAN SEND YOU THE APPROVED DEVELOPMENT PLAN AND THE SITE PLAN THAT DETAILS ALL OF THAT WAY BACK TO THE OFFICE STAFF SO YOU CAN SEE IT. OKAY. DOES THAT, THAT WAS PART OF THE, THE COUNCIL AND CPC APPROVAL, RIGHT? YES. WHEN THIS WENT THROUGH REZONING. OKAY. THAT WAS MY RECOLLECTION ALL. THANK YOU. I MEAN, IT WAS, IT WAS A BIG DISCUSSION, BUT IT ULTIMATELY LANDED ON IT. IT NEEDS TO BE THERE. IT'LL BE THERE. IT'S ON THE APPROVED OF THE PLAN. YEAH. UH, IT'S, IT'S ON SITE PLAN. OKAY. THAT'S, THAT'S WHAT I THOUGHT. I JUST WANTED TO, TO MAKE SURE. SO THIS, THIS IS IT DONE ACCURATELY REFLECT THAT CONNECTION. ALL RIGHT. DO I HAVE A SECOND? SECOND DAR. OKAY. UM, ALRIGHT. SEAN ALLEN, FRONT IN FAVOR. THANK YOU, DIRECTOR NAMBIAR APPROVED, UH, DIRECTOR MARSHALL C APPROVE, UH, TREASURER FAROH APPROVE. DIRECTOR COLLINS APPROVE DIRECTOR HEMPTON APPROVED VICE PRESIDENT GARCIA APPROVE. DIRECTOR ELLIS APPROVED. I APPROVED DIRECTOR ROBINSON. UH, OKAY. UH, DIRECTOR MOORE APPROVED. UH, SECRETARY PAGE APPROVE. DID HE SAY SOMETHING? SECRETARY PAGE, DID YOU APPROVE? UH, I THINK YOU'RE MUTED. YES. APPROVED. APPROVED. OKAY. THANK YOU. UH, ALL RIGHT. THANK YOU, DIRECTOR. ZADY, APPROVE. OKAY. MOTION CARRIES. UM, OKAY. THE NEXT ITEM ON THE AGENDA IS THE DISCUSSION OF THE DHFC POLICY RECOMMENDATIONS [01:35:01] AND TIMELINE PROPOSED BY THE CITY OF DALLAS DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT. AND I HAVE PREPARED A STATEMENT IN REGARD TO THIS ITEM, UH, THAT I HOPE YOU WILL, UM, ALLOW ME TO, UH, TO READ THROUGH AND THEN, UH, OPEN THE FLOOR FOR DISCUSSION. AND I'M GONNA START OFF WITH THE MISSION STATEMENT OF THE DHFC, WHICH IS TO PARTNER WITH DEVELOPERS TO OWN, DEVELOP, ACQUIRING FINANCE THE CONSTRUCTION OF AFFORDABLE RESIDENTIAL HOUSING. AND THE PRIMARY PURPOSE OF THE DHFC IS TO PROVIDE DECENT, SAFE, SANITARY ACCESSIBLE, AND AFFORDABLE HOUSING TO THE RESIDENTS OF DALLAS. THE DHFC CORPORATION WAS ESTABLISHED IN 1984, AND IT WAS ESTABLISHED IN ACCORDANCE WITH CHAPTER 3 94 OF THE LOCAL GOVERNMENT CODE. THAT STATUTE STATES THAT THE BOARD OF AN HFC MUST EITHER CONSIST OF MEMBERS OF THE GOVERNING BODY, WHICH IN THIS CASE IS THE CITY COUNCIL OR MEMBERS APPOINTED BY AND SUBJECT TO REMOVAL BY THE GOVERNING BODY. THE CITY OF DALLAS HAS CHOSEN THE LATTER TO APPOINT, UH, MEMBERS OF THE BOARD. ONCE APPOINTED THE BOARD IS TO HAVE ALL POWERS OVER THE CORPORATION. THE WORK OF THE DHFC CONSISTS SOLELY OF PARTNERSHIPS BECAUSE THAT WAS THE DESIGN OF THE PROGRAM. THE PROGRAM CONTEMPLATES THAT EXPERIENCED PRIVATE HOUSING DEVELOPERS WILL CONSTRUCT THE UNITS, AND ALTHOUGH THEIR COSTS WILL BE THE SAME AS FOR THE CONSTRUCTION OF MARKET RATE UNITS, THEY WILL BE ABLE TO MAKE SOME OR ALL OF THOSE UNITS AFFORDABLE DUE TO THE SUBSIDIES THAT THE DHFC CAN PROVIDE TO THEM. THOSE SUBSIDIES CONSIST OF TAX CREDITS TO INVESTORS, TAX EXEMPT BOND FUNDING, PROPERTY TAX EXEMPTIONS, AND ANY CASH SUBSIDIES THAT THE GOVERNING BODY MIGHT MAKE AVAILABLE. IN THE CASE OF THE CITY OF DALLAS, A GREAT PORTION OF THOSE CASH SUBSIDIES COME FROM THE FEDERAL GOVERNMENT IN THE FORM OF CDBG AND HOME FUNDS. IN OUR ANNUAL REPORT OF 2024, WE POINTED OUT THAT THAT YEAR, LAST YEAR, WE HAD SIX PROJECTS APPROVED, AND THOSE REPRESENTED $412 MILLION OF INVESTMENT, UH, BY THE, UH, DEVELOPMENT COMMUNITY WITH THE COMBINATION OF THE DEVELOPER INVESTMENTS AND THE DHFC. AND IT COVERED 1,552 UNITS, UH, THAT WE CREATED TO GO TOWARD AFFORDABLE, AFFORDABLE HOUSING. WE NOW HAVE 35 TOTAL DHFC PROPERTIES REPRESENTING 7,668 UNITS. FROM THE TIME OF APPROVAL OF ONE OF OUR PROPERTIES, UNTIL CONSTRUCTION IS COMPLETE, AS YOU HAVE HEARD, CAN TAKE THREE TO FOUR YEARS, OUR UNITS ARE LOCATED IN 12 DIFFERENT COUNCIL DISTRICTS, 20 ARE COMPLETED, AND 16 HAVE BEEN APPROVED. THE COMPLETED UNITS SINCE 2007 REPRESENT $1 BILLION OF INVESTMENT. THE UNITS UNDER CONSTRUCTION REPRESENT $800 MILLION OF INVESTMENT OF THE 4,616 COMPLETED UNITS 303,613 SERVE THOSE AT 80% AREA MEDIAN INCOME OR BELOW 317, SERVE THOSE AT 50% OR BELOW AND 3,891 ARE AFFORDABLE UNDER THE STATE DEFINITION OF AFFORDABILITY. OF THE 3,352 UNITS UNDER CONSTRUCTION, 3,115, SERVE THOSE AT 80% OR BELOW AND 1,417. SERVE THOSE AT 50% OR BELOW. I'M GIVING THESE STATISTICS BECAUSE I FEEL THAT AT THIS JUNCTURE, THERE ARE, UM, UH, THERE ARE CONSIDERATIONS PENDING THAT I THINK, UH, COULD, COULD PREVENT US FROM CONTINUING DOWN WHAT I THINK HAS BEEN AN EXTREMELY SUCCESSFUL PATH OF, OF, UM, OF, UH, COMPLETING OUR MISSION. SO WHAT I'M GONNA TALK ABOUT IS THAT RIGHT NOW THERE'S A HOUSING AND, UM, HOMELESSNESS SOLUTIONS COMMITTEE REVIEW THAT BEGAN AT AN OCTOBER 29TH SPECIAL MEETING. THE PURPOSE OF THIS MEETING WAS TO REVIEW THE OPERATIONS OF THE DHFC AND THE DPFC. THE DALLAS PUBLIC FACILITIES CORPORATION PRESENTATIONS WERE MADE BY THE HOUSING DEPARTMENT AND BY EACH CORPORATION. THE HOUSING DEPARTMENT WAS THEN RE REFLECTED TO PREPARE RECOMMENDATIONS CONCERNING THE OPERATIONS AND GOVERNANCE OF THE CORPORATIONS. IN THE DHFC PRESENTATION, WE POINTED OUT THAT THE CITY SUBSIDY FOR EACH UNIT AVERAGES $925 PER YEAR, AND THAT THE TOTAL EXEMPTIONS FROM THE CITY PROPERTY TAXES REPRESENTED $6 MILLION PER YEAR, WHICH IS ONE 10TH OF 1% OF THE CITY BUDGET. SO I THINK THAT FOR, I WANNA POINT OUT THAT FOR VERY FEW CITY DOLLARS, I, I JUST READ OFF TO YOU HOW MANY UNITS, UH, WE ARE ABLE TO CREATE. IN JANUARY, THE BOARD LEARNED OF A SET OF 17 RECOMMENDATIONS THE HOUSING DEPARTMENT INTENDED TO SUBMIT TO THE HHSC. THAT'S THAT, UH, COUNCIL COMMITTEE [01:40:01] THAT WOULD CONTROL THE OPERATIONS AND GOVERNANCE OF THE CORPORATION. ON JANUARY 28TH, THE HFC SUBMITTED WRITTEN RESPONSES TO THESE PROPOSED CHANGES. IT WAS MENTIONED AT THE JANUARY MEETING OF THE HHSC THAT THE HOUSING DEPARTMENT SHOULD SOLICIT COMMENTS ON THESE RECOMMENDATIONS FROM THE DEVELOPERS AND OTHER STAKEHOLDERS. AND THE DHFC TOOK THE INITIATIVE TO CONVENE A GATHERING OF THAT GROUP ON MARCH 4TH OF THIS YEAR. A SUMMARY OF THAT MEETING HAS BEEN SUBMITTED TO THE HHSC. THE FOLLOWING IS A SUMMARY OF THE HOUSING DEPARTMENT RECOMMENDATIONS THAT I FIND THE MOST TROUBLING. NUMBER ONE, SOME OF THESE RECOMMENDATIONS REQUIRE ADDITIONAL APPROVALS FROM THE HOUSING DEPARTMENT. THERE ARE ALREADY FOUR LAYERS OF APPROVALS THAT A DEVELOPER MUST GO THROUGH, AND NONE OF THOSE LAYERS BEGIN UNTIL THE DEVELOPER HAS ALREADY LOCATED THE PROPERTY LOCATED, ENTERED INTO A CONTRACT TO PURCHASE IT, INCLUDING ANY PRELIMINARY DUE DILIGENCE BY THE DEVELOPER, AND COMPLETED A DETAILED APPLICATION FOR CONSIDERATION BY THE DHFC. THOSE FOUR LAYERS ARE FIRST, THE DHFC PROFESSIONAL STAFF. SECOND, THE DHFC BOARD, THIRD, THE HHSC OF THE CITY COUNCIL, AND FINALLY, THE FULL CITY COUNCIL. AND THAT DOESN'T COUNT ZONING AND PERMITTING PROCESSES. THE BOARD HOUSING COMMITTEE AND COUNCIL APPROVALS MUST BE OBTAINED ACCORDING TO THE MEETING CALENDARS OF ALL OF THOSE ENTITIES. THE DHFC, FOR EXAMPLE, ONLY MEETS ONCE A MONTH, AND THOSE OTHER LEVELS, LEVELS OF APPROVAL ONLY HAVE ONE OR TWO MEETINGS A MONTH DUE TO THIS EXTENDED TIMELINE. IN ADDITION TO THE RISK THAT THERE WILL BE DENIAL AT ANY OF THESE LEVELS, MANY PROPERTY SELLERS WOULD RATHER TAKE A LOWER OFFER FROM A DEVELOPER THAN SELL TO A DEVELOPER AND SUFFER THE, SUFFER THESE RISKS AND DELAYS. NUMBER TWO, SOME OF THESE RECOMMENDATIONS RESTRICT AFFORDABILITY TO THOSE EARNING THREE 30 TO 50% OF A A MI. IN ORDER FOR A DEVELOPER TO PROVIDE SUCH DEEP AFFORDABILITY, THE DEVELOPER WOULD NEED MUCH GREATER SUBSIDY. THE DHFC CANNOT PROVIDE THAT LEVEL OF SUBSIDY. I LISTED THE TOOLS AVAILABLE TO THE DHFC PREVIOUSLY, AND THE ONLY TOOL THAT COULD BE INCREASED IS THE TOOL OF CASH SUBSIDY. SO IF THIS RECOMMENDATION IS ADOPTED, EITHER THE DHFC WILL BASICALLY BE PUT OUT OF THE BI OUT OF BUSINESS, OR THE CITY WILL HAVE TO PROVIDE A LARGE POOL OF CASH IN ITS GENERAL OPERATING BUDGET TO PROVIDE THOSE SUBSIDIES. THE DHFC DOES MANDATE FOR ALL OF ITS DEVELOPMENTS THAT FEDERAL VOUCHERS BE ACCEPTED, AND THROUGH THOSE VOUCHERS, WE CAN SERVE TENANTS AT 30 TO 50% A MI. BUT WE CAN'T GUARANTEE UPFRONT WHAT NUMBER OF UNITS WILL END UP BEING OCCUPIED BY VOUCHER HOLDERS. THOSE VOUCHER HOLDERS GET TO SELECT WHERE THEY CHOOSE TO LIVE. NUMBER THREE, OUR PRIVATE DEVELOPERS ALREADY HAVE EXTENSIVE OVERSIGHT OF EVERY ASPECT OF CONSTRUCTION AND OPERATIONS BY THEIR EQUITY INVESTORS. COUNSEL FOR THE EQUITY INVESTORS, BOND ISSUERS, COUNSEL FOR THE BOND ISSUERS, MORTGAGE LENDERS COUNSEL FOR THE MORTGAGE LENDERS, GENERAL CONTRACTORS, ARCHITECTS, AND IN THE CASE OF LOW INCOME HOUSING TAX CREDIT DEVELOPMENTS, THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, WHICH WE REFER TO AS THE T-D-H-C-A, THOSE PARTIES ALREADY ALREADY REQUIRE A HUGE AMOUNT OF DUE DILIGENCE IN THE FORM OF MARKET ANALYSIS, FINANCIAL ANALYSIS, PRO FORMAS, ENVIRONMENTAL STUDIES, APPRAISALS, PROPERTY CONDITION REPORTS FOR EXISTING PROPERTIES, SOILS REPORTS, AS YOU HEARD ABOUT TODAY, PROPERTY MANAGEMENT CONTRACTS, ET CETERA. THERE ARE HOUSING DEVELOPMENT RECOMMENDATIONS THAT WOULD INVOLVE DUPLICATIVE, DUPLICATIVE APPROVALS TO ALL OF THOSE. I HAVE LISTED. THIS IS A COST TO THE CITY OF DALLAS THAT IS UNNECESSARY AT A TIME WHEN THE CITY BUDGET IS ALREADY STRAINED AND AGAIN, CAUSES DELAY IN GETTING THESE DEVELOPMENTS CONSTRUCTED. NUMBER FOUR, THE RECOMMENDATIONS CONTAIN SEVERE RESTRICTIONS ON THE NUMBER OF MARKET RATE UNITS THAT CAN BE IN A DEVELOPMENT SUPPORTED BY THE DHFC. AND THE DEFINITION OF MARKET RATE PUT FORTH BY THE HOUSING DEPARTMENT IS ANYTHING OVER 80% OF A MI. THAT DEFINITION OF MARKET RATE IS NOT THE DEFINITION USED BY THE STATE OR THE DEFINITION USED IN THE AFFORDABLE HOUSING COMMUNITY. IN ADDITION, THE HOUSING DEPARTMENT WANTS THOSE DEVELOPMENTS TO BE LIMITED TO AREAS WITH AT LEAST 20% POVERTY. POVERTY. THIS WILL DO THREE THINGS THAT THE DEVELOPER COMMUNITY AND THE DHFC BELIEVE ARE EXTREMELY DE DETRIMENTAL. FIRST, THE CURRENT CITY POLICY IS TO ENCOURAGE MIXED INTO INCOME DEVELOPMENTS. IN OTHER WORDS, THE DEVELOPMENTS WILL CONTAIN UNITS OCCUPIED BY THOSE EARNING A RANGE OF INCOMES. THIS HAS PROVEN TO BE BENEFICIAL TO ALL OF THE TENANTS IN IN THESE PROPERTIES. THIS NEW RECOMMENDATION IS CONTRARY TO THAT GOAL. SECOND, THE LIMITATION TO ONLY THOSE AREAS WITH AT LEAST 20% POVERTY WILL CREATE A CONCENTRATION OF AFFORDABLE HOUSING IN [01:45:01] ONLY CERTAIN AREAS OF THE CITY, WHICH IS, AGAIN, CONTRARY TO CITY POLICY, NOT TO MENTION FEDERAL MANDATES. THIRD, THIS RESTRICTION WILL MEAN THAT CERTAIN AREAS OF THE CITY WILL NOT CONTAIN ANY NEW AFFORDABLE UNITS BECAUSE THE LAND COSTS ARE SO STEEP THAT NO DEVELOPER WILL BE ABLE TO PURCHASE OR CONSTRUCT THOSE UNITS. THAT WOULD INCLUDE AREAS LIKE UPTOWN OR NORTHDALE. OUR ESSENTIAL WORKERS SUCH AS POLICE, FIREFIGHTERS, TEACHERS, NURSES, MALE CARRIERS, ET CETERA, MAKE TOO MUCH MONEY TO QUALIFY FOR LOW INCOME HOUSING TAX CREDIT UNITS, BUT TOO LITTLE MONEY TO AFFORD TO LIVE IN MANY AREAS OF THE CITY. IF DEVELOPERS CAN USE THE LEVERS THAT THE DHFC CAN PROVIDE, THEY CAN MIX UNITS FOR THOSE WORKERS WITH MARKET RED UNITS AND PROVIDE AT LEAST SOME UNITS AFFORDABLE TO THOSE WORKERS. THE CITY OF DALLAS COMPETES WITH SURROUNDING COMMUNITIES FOR THOSE WORKERS, AND IT WILL BE DETRIMENTAL TO THE CITY IF THEY ARE FORCED TO LIVE IN THOSE OUTLYING AREAS. OUR HOSPITALS, POLICE FORCE, FIRE DEPARTMENTS, SCHOOLS, AND OFFICES NEED THOSE WORKERS. AND IF THOSE WORKERS LIVE IN THE CITY, THEY CONTRIBUTE SALES TAX DOLLARS TO OUR GENERAL BONDS. THERE IS NOW A MEETING OF THE HHS COMMITTEE SCHEDULED FOR APRIL 22ND AT WHICH THE MEMBERS OF THAT COMMITTEE WILL CONSIDER THESE RECOMMENDATIONS. THE HOUSING DEPARTMENT WILL BE PRESENTED PRESENTING AT THAT MEETING, AND WE WILL NOT BE ABLE TO PRESENT. I'M HOPING THAT THIS SUMMARY AND OUR BOARD DISCUSSION THAT FOLLOWS WILL ENCOURAGE THE HHS COMMITTEE AND THE HOUSING DEPARTMENT TO RECONSIDER PUSHING THESE RECOMMENDATIONS FORWARD TO THE FULL COUNCIL FOR CONSIDERATION. I'M ALSO HOPING THAT ALL WHO WILL BE ADVERSELY AFFECTED BY THESE CHANGES MAKE THEIR VOICES HEARD TO THEIR ELECTED OFFICIALS. THAT'S MY STATEMENT, AND I'VE OPENED THE FLOOR FOR DISCUSSION. I THINK THAT CAPTURES THE SITUATION VERY WELL. . UM, ANOTHER THREE MINUTES FOR PUBLIC COMMENT. MM-HMM . YOU THINK YOU CAN MAYBE TURN IT DOWN FOR THREE MINUTES WITH PUBLIC COMMENT? WE HAVE A MEETING. UHUH, YOU GONNA READ IT OUT? OR I DON'T KNOW IF ALLOWED PUBLIC COMMENTS. PUBLIC COMMENTS ARE NOT ALLOWED AT, UH, COUNCIL COMMITTEE MEETINGS. ONLY AT FULL COUNCIL MEETINGS. OF THE DISCRETION OF THE, UH, CHAIR. YEAH, THE, YEAH. THE CHAIR WOULD HAVE TO STOOD OUT TO ME. IT'S THE ONE 10TH 1% OUT THE BUDGET THAT GOES TO MARK. ANNUAL ANNUAL. ANNUAL, ANNUAL. UH, WELL, THAT WAS THOSE EXISTING PROPERTIES AS OF WHEN WE MADE THAT PRESENTATION IN OCTOBER, YOU MIGHT SAID IT AND I JUST DIDN'T CATCH IT. I THINK TYPICALLY THEY'RE PUSHBACK. THEY LIKE TO TIER HOW MUCH VERSUS HOW MUCH GAIN THERE IS. SO NOT LIKE JUST HOW MUCH THEY'RE SPENDING, BUT, UH, FOR THAT ONE, 1% OF THE OPERATING BUDGET WE GET. RIGHT. AND AS YOU KNOW, DIRECTOR MOORE, WE DO REQUIRE ON EACH OF THE ONES WE APPROVE, THAT SUB PUBLIC BENEFIT COME EITHER BY DOLLARS TO THE, UM, HFC OR UH, UM, I GUESS, I DON'T KNOW ALL THE, BUT THERE'S A WHOLE PUBLIC BENEFIT ANALYSIS. AND YOU'RE RIGHT, YOU'RE RIGHT. THAT'S JUST WHAT IT'S COSTING THE CITY AND NOT TAKING INTO ACCOUNT THAT ANY DOLLARS THAT MIGHT COME BACK. AND THAT'S AN OPPORTUNITY COST, RIGHT? I MEAN, THAT'S JUST THE LOSS TAX REVENUE. THAT'S NOT ACTUAL DOORS DOLLARS GOING UP. I MEAN, THEORETICALLY THEY WOULD COLLECT THOSE DOLLARS, BUT THEY DON'T HAVE YES. YES. AND AS I SAY, YOU KNOW, THERE COULD BE SALES TAX BENEFITS THAT WOULD ALSO COUNTERACT THAT. LOOK, BOTTOM LINE, THE PROPOSALS BY THE HOUSING DEPARTMENT ESSENTIALLY SHUTS DOWN THE DALLAS HSC AND DSC BASED ON THE READING OF THAT MEMO, WE WILL NOT BE ABLE TO PROVIDE CITY THAT IS CRYSTAL CLEAR. SO I, I DON'T, IT'S UNFATHOMABLE THAT THE HOUSING DEPARTMENT COULD DO THAT TO THE MOST EFFECTIVE TOOLS DOING IT, BUT THAT'S WHAT THEY DID. AND THAT'S WHAT THE HOUSING AND ALL THOSE COMMITTEES GONNA HEAR. AND YEAH, I MEAN I THINK I, I'VE ALREADY SCHEDULED OR MEETING WITH MY OWN COUNCIL PERSON TO KIND OF DISCUSS WHAT I'VE EXPERIENCED AND OBSERVED IN THIS PROCESS TO SAY, HEY, THIS IS GONNA BE THE EFFECT THAT WE VOTE LIKE THIS. AND TO THE POINT, I'M NOT EVEN SURE I UNDERSTAND WHY THEY ARE DOING THIS OTHER THAN THERE'S A FEW DEALS WE'VE DONE, WHICH IT'S, YOU KNOW, IT'S LIKE A PRICK OF THE FINGER TO SOLVE IT. YOU'RE CHOPPING OFF THE ARM IN ORDER TO, IT'S UNBELIEVABLE. BUT I THINK BEYOND JUST THE WHOLE 30 TO 50% MI, WHICH MY UNDERSTANDING WAS THAT IT WAS BASED ON A REPORT THAT SAID THERE'S THIS GAP FOR 50% EARNS, RIGHT? WELL GUESS WHAT? I SAW THAT SAME REPORT THAT SAID THERE WAS A HUGE GAP FOR SIXTIES AND A HUGE GAP FOR EIGHTIES. AND SO THEY JUST SELECTIVELY TOOK THE FIFTIES AND SAID, OH, [01:50:01] WE GOTTA SOLVE THAT. YOU KNOW, THAT'S GONNA BE THE FOCUS. OH, AND BY THE WAY, WE'RE NOT GONNA PROVIDE AFFORDABILITY FOR THE MOST UNAFFORDABLE AREAS OF DALLAS . JUST FOR A BODY LIKE THE CITY COUNCIL TO APPROVE SOMETHING LIKE THAT. WE ARE NOT GOING TO PROVIDE AFFORDABILITY. THE MOST UNAFFORDABLE AREAS OF DALLAS WOULD BE ONE HECK OF A STATEMENT FOR THE DALLAS CITY COUNCIL TODAY. I THINK REALLY BOTTOM LINE IS THE WORKFORCE DEALS THAT FOR SOME REASON HAVE CAUSED MOST CONTROVERSY. IT IS, WE ALL KNOW IT'S NOT REALLY THE LITECH UNLESS WE CONCENTRATE POVERTY, WE GET SUED BY HUD. RIGHT? I MEAN IT IS THE WORKFORCE DEALS AND WE'RE TALKING NOT EVEN REALLY THE GROUND UP. 'CAUSE WE ALL KNOW THE GROUND UPS REALLY DON'T TAKE THAT MUCH OFF THE TAX ROLLS ANYWAYS. OKAY? WE CAN TALK ABOUT OPPORTUNITY COSTS ALL WE WANT, BUT GOOD LORD, NOW YOU'RE PROJECTING, YOU KNOW, HEY MAGICAL NUMBERS IN THE FUTURE AND A DEAL THAT PROBABLY WOULD'VE GONE. ABSOLUTELY. AND THEN WHAT, YOU KNOW, WHAT'S THE MAGICAL NUMBERS? IF EMPLOYERS START LEAVING THE CITY OF DALLAS BECAUSE THEIR WORKERS CAN'T FIND PLACES TO LIVE, OKAY, LET'S START DOING THAT. RIGHT? IT'S THE ACQUISITIONS THAT HAVE DONE OKAY, AND WE ALL KNOW THESE ACQUISITIONS IN THE MOST UNAFFORDABLE AREAS, WHICH IS NORTH 30, AROUND THE CENTRAL TOLLWAY CORRIDOR. EVEN THE PFC CAN'T GET AROUND UPS IN THESE AREAS. IT'S LITTLE OFFBEAT PATH. YOU WANT TO GET SOMETHING IN UPTOWN, MIDTOWN, THESE INEXPENSIVE, YOU KNOW, THESE VERY EXPENSIVE AREAS WAY ECONOMICS ARE WORKING RIGHT NOW. ACQUISITIONS ARE YOUR ONLY OPTION BY ANY LEVEL. I DO GET IT. THERE'S SOME ISSUE WITH THE FACT THAT IT'S REALLY HALF THE PROJECT EFFECTIVELY THAT HAS TO AFFORDABILITY, BUT IT'S A LIGHTER SUBSTANCE. YOU KNOW, THAT'S JUST IT. WE HAVE BEEN MEASURED AND I WAS JUST COUNTING IT ON MY HANDS AND LITERALLY WE HAVE LITERALLY FIVE, FIVE DEALS THAT WE HAVE DONE. MM-HMM . SINCE 2022 OF THE . I'D LIKE TO KNOW WHAT THE HOUSTON HOUSING AUTHORITY HAS DONE SINCE THAT TIME. , YOU GUYS KNOW, I BET YOU KNOW, OR SO IT'S AN ASTRONOMICAL NUMBER OR AUSTIN HOUSING AUTHORITY. WE HAVE BEEN, WE HAVE BEEN CONTROLLED, WE HAVE BEEN MEASURED. WE HAVE PICKED THE RIGHT SPOTS. WE PICKED THE RIGHT DEALS. WE HAVE DONE NOTHING IRRESPONSIBLE. IS THERE ANY CONTEMPLATION ABOUT TRAVELING HFCS? I MEAN, WHAT HAPPENS IN THE EVENT THEY PASSED THIS MEMO? BECAUSE IT DOESN'T, STILL WOULDN'T STOP TRAVELING HCS . WELL, I I THINK WE'RE ALL ASSUMING THAT THE TRAVELING HFCS WILL BE PROHIBITED AFTER THE END OF THIS LEGISLATIVE. SO IT HAS BEEN, YEAH. RIGHT. THEY WILL VIRTUALLY CERTIFIED SEPTEMBER 1ST. I MEAN, THAT'S, THAT'S A LONG TIME. FIVE, SIX MONTHS. OH, I HAVE A HUNDRED DEALS DONE BETWEEN NOW. NO, I MAKE THAT POINT ALL THE TIME. FROM JEFFERSON NOVA, RIGHT? THAT'S THE CASE IN POINT. YES. TALKING ABOUT, ARE THESE RECOMMENDATIONS THAT THE HOUSING DEPARTMENT IS ADVOCATING FOR, OR HAVE THEY DELINEATED AN OPTION TO PRESENT THAT REFLECTS THE COMMENTS THAT HAVE BEEN MADE AT THE YEAR? SO MY UNDERSTANDING IS THAT THE HOUSING DEPARTMENT WAS INSTRUCTED BY THE COMMITTEE NOT TO REVISE THESE RECOMMENDATIONS PRIOR TO THE HEARING ON APRIL 22ND. SO THE HOUSING DEPARTMENT GOING IN AND ADVOCATING ON BEHALF OF, TO MY KNOWLEDGE, WE DO HAVE A MEETING SET UP FOR, FOR APRIL 15TH WITH, UH, THE DIRECTOR OF THE HOUSING DEPARTMENT AND THE ASSISTANT CITY MANAGER OVER THE HOUSING DEPARTMENT. BUT THE ASSISTANT CITY MANAGER INDICATED TO ME THAT THE COMMITTEE WAS NOT ALLOWING THEM TO REVISE THESE RECOMMENDATIONS PRIOR TO APRIL 22ND. IF ANYBODY ON STAFF KNOWS ANY DIFFERENT, I THINK THEY'RE GOING TO GO LINE BY LINE THROUGH THE RECOMMENDATIONS AS , BUT THEY'RE THERE. I DON'T THINK THERE WILL BE ADMISSION TO THAT, THAT ALL, DESPITE THE FACT WE WERE ASKED TO GET DEVELOPER FEEDBACK, HSC FEEDBACK AND SUBMITTED REPORTS AND SUBMITTED REPORTS, AND THERE WAS JUST A, I GUESS A COLLECTIVE AND NEVERMIND, JUST DO ORIGINAL, BUT YOU DON'T WORRY ABOUT IT. THAT'S MY UNDERSTANDING. IF ANYBODY HAS HEARD ANY DIFFERENT, LET KNOW. DO YOU THINK YOU COULD, YOU SAID THAT WHAT'S MORE VISIBLE? SURE. I DON'T KNOW IF WE HAVE ANY ESRI PEOPLE HERE, BUT CAN WE DO AN OVERLAP OF THE AREAS WHERE 20% PROPERTY AND THE QCT DDA IS JUST TO SEE WHERE, HOW IS AND WILL BE CONCENTRATED UNDER THE CORRECT TOOL SET. WE HAVE THIS OR DO WE HAVE THAT? I'M VERY HAPPY TO MAKE A THREE MINUTE PRESENTATION IF THAT'S ALL I'M LIMITED TO OR THIS FULL PRESENTATION WITH SLIDES IF I AM ALLOWED. BUT, UH, I HAVE NOT BEEN INFORMED OF ANY OPPORTUNITY FOR THE DHFC TO OTHER THAN AS A PUBLIC COMMENT TO PRESENT AT THAT HEARING. THIS IS THE POINT. SIGNED APRIL 26TH. PRESIDENT, CAN I MAKE A, UH, COMMENT? WAIT, WHAT WAS THAT? GO AHEAD, TONY. TONY, YEAH. [01:55:01] YES. CAN I MAKE A, UH, BRIEF COMMENT ABOUT A TWO MINUTE COMMENT? SURE. THAT'S WHAT THIS IS FOR IS DISCUSSION . UM, YEAH, I WANTED TO TO TOUCH ON THE, UH, THIS IS PROPERTY BY THE SURVEY THAT WENT OUT ON FRIDAY FROM THE, UH, HOUSING DEPARTMENT. UM, I, I WANTED TO RAISE A CONCERN ABOUT HOW THESE PROPOSED CHANGES TO OUR GOVERNANCE AND OPERATIONS ARE BEING HANDLED BY CITY STAFF SPECIFICALLY. UM, DESPITE REPEATED DIRECTION FROM SEVERAL MEMBERS OF THE HOUSING AND HOMELESSNESS SOLUTIONS COMMITTEE AND CITY COUNCIL CALLING FOR MORE COLLABORATION AND TRANSPARENCY, WE CONTINUE TO BE EXCLUDED FROM KEY PARTS OF THE PROCESS. MOST RECENTLY, ON FRIDAY AFTERNOON, THE HOUSING DEPARTMENT DISTRIBUTED A SURVEY ABOUT PROPOSED BYLAW AND POLICY CHANGES WITHOUT ANY CONSULTATION WITH THIS BOARD OR OUR STAFF. WE WERE NOT INFORMED ABOUT THE SURVEY'S CONTENT, ITS DISTRIBUTION OR HOW THE RESPONSES WOULD BE USED. THE SURVEY ITSELF IS TROUBLING. IT INCLUDES LEADING BINARY FRAMED QUESTIONS THAT SEEM DESIGNED TO SUPPORT PREDETERMINED OUTCOMES. DETERMIN ONE QUESTION SUGGESTS SHIFTING REVENUE AND OPERATIONAL CONTROL AWAY FROM THIS BOARD TO CITY STAFF, DESPITE THE FACT THAT CHAPTER 3 94 OF THE TEXAS LOCAL GOVERNMENT CODE ASSIGN THAT AUTHORITY TO US. THAT PROPOSAL ALSO CONTRADICTS BASIC PRINCIPLES OF TEXAS BUSINESS LAW, WHICH REQUIRE BOARD, UH, WORDS TO EXERCISE OVERSIGHT OVER THE ENTITIES THEY GOVERN. OH, CAN YOU HEAR ME NOW? YEAH. WELL, YOU'RE KIND OF GOING IN AND OUT A LITTLE BIT, I THINK. YEAH. NOW YOU'RE NOT, CAN YOU HEAR ME NOW? YEAH. ALL RIGHT. I'LL CONTINUE. ALL RIGHT. I'VE ONLY GOT ABOUT 30 SECONDS. GO. THE SURVEY ITSELF IS TROUBLING, INCLUDES LEADING BINARY FRAME QUESTIONS SEEN, DESIGNED TO SUPPORT PREDETERMINED OUTCOMES. ONE QUESTION SUGGESTS HEAVY REVENUE AND OPERATIONAL CONTROL AWAY FROM THIS FORWARD TO CITY STAFF. DESPITE THE FACT THAT CHAPTER 3 94, THE TEXAS LOCAL GOVERNMENT CODE ASSIGN THAT AUTHORITY TO US. THE PROPOSAL ALSO CONTRADICTS BASIC PRINCIPLES OF TEXANS BUSINESS LAW, WHICH REQUIRE BOARDS TO EXERCISE OVERSIGHT OVER THE ENTITIES THEY GOVERN. THIS BOARD IS ENTIRELY APPOINTED BY THE MAYOR AND CITY COUNCIL. WE ARE ALREADY DIRECTLY ACCOUNTABLE TO ELECTED LEADERSHIP. IT'S NOT JUST A MATTER OF PROCESS. IF THESE CHANGES MOVE FORWARD WITHOUT INPUT FROM THIS BOARD, THE RESULT COULD BE A DEVASTATING IMPACT ON OUR ABILITY TO FULFILL OUR CORE MANDATE GENERATING AFFORDABLE HOUSING FOR THE PEOPLE OF DALLAS. WE ARE THE MOST PRODUCTIVE HOUSING TOOL. THE CITY HAS UNDERMINING OUR EFFECTIVENESS BENEFITS. NO ONE, I BELIEVE WE SHOULD IN A SENSE THAT WE ARE CONSIDER HOW BEST TO RESPOND, WHETHER THROUGH FORMAL COMMUNICATION WITH THE COMMITTEE, CITY COUNCIL, OR BOTH. THANK YOU. THANK YOU. YEAH, I DIDN'T MENTION THE SURVEY, UH, AS YOU SAID, UM, SECRETARY PAGE. WE DID NOT KNOW THE SURVEY WAS GOING OUT. WE DON'T KNOW WHO IT WENT TO AND WE DON'T KNOW WHAT IF, WHAT THE CONSIDERATION IS AS FAR AS WHAT, HOW TO USE THE RESPONSES TO IT. I ASSUME SOMETHING WILL BE PRESENTED APRIL 22ND BY THE HOUSING DEPARTMENT IN REGARD TO THE SURVEY. THAT I DON'T KNOW ABOUT. SURE. I THINK SO. I MEAN, DO WE HAVE ANY IDEA OF THE AUDIENCE? THAT ONE NOW TOO, THAT SURVEY? YES. IT WENT TO THE HOUSING DEPARTMENT. LISTERV, DOES THAT INCLUDE DEVELOPERS? YES. SO DEVELOPERS WERE ALLOWED TO WEIGH IN ON, WE OUGHT TO SPEND $20 MILLION IN THE DHSC BANK ACCOUNT. THE HOUSING DIRECTOR OR THE HSC BOARD. I ANYONE CAN GET IT. THAT'S THE WAY, RIGHT? ANYONE COULD WHAT, I GUESS YOU'RE RIGHT. GET ON THE MAILING LIST. IT'S NOT BE FORWARDED PROTECTED, BUT CAN BE FORWARDED. OH. UM. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.