* 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. GOOD [00:00:01] AFTERNOON EVERYONE. [Public Facility Corporation Special Called Meeting on May 9, 2025.] MY NAME IS KEITH KO, PRESIDENT OF THE DALLAS PUBLIC FACILITIES CORPORATION. I WOULD LIKE TO CALL THIS BOARD OF DIRECTORS RETREAT AND SPECIAL CALL MEETING TO ORDER AT, UH, 12:33 PM THANK Y'ALL VERY MUCH FOR COMING. WE'LL MOVE OUT. NUMBER TWO, ROLL CALL SAMUEL SCOTT. SEL. PRESENT. STACY MARSHALL. SURE. WELL, WE NEED TO MAKE SURE HE CAN HEAR US. YEAH, HE'S MUTE RIGHT NOW. COME BACK. RONALD STINSON, BRIAN BLANKENSHIP. VICTOR TOLEDO. JASON BROWN. HE'LL BE ON 20:00 AM THERE HE IS RIGHT HERE. JASON BROWN. THERE HE IS. KEN MONTGOMERY. HERE. MARK HOLMES. PRESENT. ALAN TELLIS. PRESENT. KEVIN WINTERS PRESENT. LAUREL STONE IN KEEP ON THE CALL PRESENT. AND, UH, CAN WE CONFIRM MR. MARSHALL, UH, DIRECTOR MARSHALL CAN SAY PRESENT THAT HE HAS, UH, AUDIO. STACY, CAN, CAN YOU HEAR US? AND ARE YOU ABLE TO PARTICIPATE? YES. IT LOOKS LIKE HE'S ON MUTE. CAN WE TEXT HIM? CAN YOU UNMUTE HIM FOR NO, WE DON'T NEED INFO FORM, BUT, UH, OKAY. IF YOU CAN MAKE SURE, WE'LL GO AHEAD AND, UH, MOVE ON TO ITEM NUMBER THREE, PUBLIC TESTIMONY. NOW HERE, PUBLIC COMMENTS FOR ITEM NUMBER FOUR. AND, UH, JUST SO Y'ALL KNOW, YOUR HONOR, OKAY. STACY IS ONLINE AND YOU CAN PARTICIPATE. OKAY. CAN YOU SAY PRESIDENT MARSHALL, CAN YOU CONFIRM YOUR PRESENCE PRESENT? THANK YOU. DIRECTOR MARSHALL . THANK YOU. THANK YOU. OKAY, MOVING ON TO PUBLIC TESTIMONY ITEM NUMBER THREE. UH, WE WILL NOW HEAR PUBLIC TESTIMONY FOR ITEM NUMBER FOUR. UH, KEEP IN MIND THAT DURING ITEM NUMBER FOUR, WE WILL ALSO, UH, RECOGNIZE, UH, ANYONE WOULD LIKE TO SPEAK, UH, DURING THE COURSE OF THE DISCUSSION ABOUT NUMBER FOUR. AND WE WILL ALSO TAKE PUBLIC TESTIMONY AT THE CONCLUSION OF ITEM NUMBER FOUR. SO, ONLINE, UH, DO WE HAVE ANYONE WHO WOULD LIKE TO SPEAK? UH, AS FAR AS, UH, ITEM NUMBER THREE, PUBLIC TESTIMONY? SOPHIA? NOT ONLINE. OKAY. NO ONE. NO ONE ONLINE. SO I WILL PROCEED TO, UH, ITEM NUMBER FOUR, AND KEEPING IN MIND WE'LL KEEP THE FLOOR OPEN FOR PUBLIC DISCUSSION, UM, UNTIL WE ADJOURN. ITEM NUMBER FOUR, DISCUSSION OF DRAFTING A POLICY STATEMENT REGARDING THE ADMINISTRATION POLICY REQUIRED PROJECT REQUIRED REQUIREMENTS, GOVERNANCE AND OPERATIONS AS PROPOSED IN THE PROPOSED DALLAS HOUSING FINANCE CORPORATION AND DALLAS PUBLIC FACILITIES CORPORATION PROGRAM. STATEMENTS MEMORANDUM AT THE APRIL 22ND HOUSING AND HOMELESSNESS SOLUTIONS COMMITTEE MEETING. OKAY. UM, OH, I'D LIKE TO THANK Y'ALL ALL FOR COMING TODAY, AND I'LL JUST OPEN UP WITH JUST A, A, A THANK YOU, FIRST OF ALL TO, UM, OUR HOST ALAN TELLIS, FOR OBTAINING THIS, UH, SPACE FOR US TODAY. AND, UM, I'D ALSO LIKE TO THANK STAFF, UH, SAM MCDANIEL, JACQUELINE SCHROEDER, SOPHIA GOMEZ, ASHLEY MARTIN, LUCIA LIMA, AND THE AV, UM, PERSON, UH, DAVID ZAPETA. UH, THANK Y'ALL ALL FOR, UH, PUTTING THIS TOGETHER AND ALLOWING US TO MEET AND, UH, SORT OF A DIFFERENT ENVIRONMENT OFFSITE, BUT IN A WAY, UH, I, I'M HOPING IS, UH, WHERE WE CAN CONNECT AND COMMUNICATE AND COLLABORATE, UH, IN A DIFFERENT ENVIRONMENT. SO, I LOOK FORWARD TO THIS AND I'D LIKE TO ALSO SAY THANK YOU FOR, UH, AND WELCOME YOU TO DISTRICT 13. THIS IS, UH, AND CONGRATULATE, UH, UH, COUNCIL MEMBER GAY WILLIS FOR HER REELECTION. AND WE'RE HAPPY TO BE MEETING HERE IN, UM, DISTRICT 13 IN THE CITY OF DALLAS. SO, THANK YOU VERY MUCH. [00:05:01] UH, COUNCIL MEMBER WILLIS. AND I'D LIKE TO THANK YOU ALL FOR COMING GATHERINGS SUCH AS THIS IS A LIVING EXAMPLE OF HOW WE CAN ALL GET TOGETHER AND UTILIZE CITY MANAGER BERT'S VALUED PRINCIPLES TO CONNECT AND WORK TOGETHER, COLLABORATE AND COMMUNICATE TOWARDS SHARED COMMON GOALS. WITH THIS PROCESS IN OUR MUTUAL RESPECT FOR THE ROLES AND RESPONSIBILITIES OF COUNCIL, HOUSING DEPARTMENT STAFF, AND THE COOPERATION BOARDS, WE CAN COME TO A SHARED COMMITMENT AND PLAN TO MAXIMIZE AVAILABILITY OF WORKFORCE AND AFFORDABLE HOUSING FOR THE RESIDENTS OF DALLAS. REST ASSURED, WE'LL CONTINUE TO MAKE SURE ALL CONVERSATIONS WE HAVE TODAY DOES NOT, DO NOT END TODAY. IT IS INCLUSIVE OF ALL CITIZENS OF DALLAS. WE ARE A CAN-DO CITY, AS WE ALWAYS SAID HERE IN DALLAS AND LPM COMMUNICATION WILL BENEFIT ALL. I THINK MOST OF US HERE TODAY. RECALL THE OCTOBER 29TH, 2024 HHS MEETING WHEN STAFF RECOMMENDED THE REVIEW OF THE DPFC POLICIES AND OPERATIONS. THE PRIORITY ACTION PLAN FROM THAT MEETING WAS TO PROVIDE INPUT TO THE REVIEW PROCESS BY RESPONDING TO A SERIES OF QUESTIONS POSED BY STAFF CONCERNING ONE, THE CORPORATION'S USE OF EXCESS REVENUE. TWO, THE LOCATION OF FUTURE DEVELOPMENT PROJECTS, THREE, PROJECT APPROVAL PROCESS, AND FOUR CORPORATE CONTROL. WHEN THE TOPIC WAS, AGAIN ON THE HHS AGENDA ON JANUARY 28TH, 2025, MANY MAY NOTE THAT, UH, LITTLE OF OUR INPUT WAS REFLECTED IN THE 25 CHANGE RECOMMENDATIONS PRESENTED BY THE HOUSING DEPARTMENT STAFF. AS I OBSERVED SINCE THEN, THOUGH THE REVIEW PROCESS COULD USE SOME MORE COLLABORATION AND FOR A WHILE, THE RELATIONSHIP AMONG THE REVIEW PARTICIPANTS HAD BEEN SOMEWHAT STRAINED. VIRTUALLY ALL STAKEHOLDERS, WE HAVE INDICATED TO COUNCIL MEMBERS AND HOUSING STAFF FEEL THE CITY NEEDS A MAJOR RESET IN ITS PAST BECAUSE WE ALL WANT THE OUTCOME OF THE RECOMMENDATIONS NOT TO DIMINISH THE DPFC AND D-D-H-F-C HOUSING PROGRAMS THAT WE DEPENDED ON LAST YEAR TO DELIVER AN ASTONISHING 73% OF THE CITY'S TOTAL AFFORDABLE HOUSING UNIT PRODUCTION. SO LET'S ALL COMMIT TODAY TO RESET THE REVIEW PROCESS AND BEGIN A TRUE COLLABORATIVE PARTNERSHIP, ONE THAT PRESERVES AND EXPANDS THE CITY'S TWO MOST IMPORTANT HOUSING PROGRAMS. I'M HAPPY THAT WE ARE ALL HERE AND LOOK FORWARD TO THIS COLLABORATIVE PROCESS. HOUSING STAFFS RECOMMENDATIONS FALL INTO ROUGHLY TWO CATEGORIES, ADMINISTRATIVE AND OPERATING PROCEDURES, AND WHAT IS VERY IMPORTANT TO US. PROPOSED HOUSING POLICY RESTRICTIONS RELATED TO PROJECT A MI TARGET LEVELS IN AREA POVERTY RATE LEVELS. I PROPOSE THAT WE FOLLOW THE ADVICE OF COUNCIL MEMBER WILLIS, COUNCIL MEMBER WILLIS, AND COUNCIL MEMBER RIDLEY, AS GIVEN IN THEIR APRIL 9TH, 2025 MEMO, THE CITY MANAGER TOBER AND ITS RECOMMENDATION OF A TWO PHASE REVIEW PROCESS. THE FIRST PHASE WOULD BE DIRECTED AT DEVELOPING AGREED UPON ADMINISTRATIVE AND OPERATING PROCEDURES THROUGH GOOD FAITH COLLABORATIVE WORKSHOP MEETINGS, AND DOCUMENTING THEM IN A MEMORANDUM OF UNDERSTANDING RATHER THAN, UH, UNNECESSARILY ADDING THEM TO A COUNCIL APPROVED POLICY. PROGRAM STATEMENT PHASE TWO WOULD ADDRESS THE TRUE HOUSING POLICY RECOMMENDATIONS. I AM OPTIMISTIC THAT WE CAN REACH A VALUABLE CONSENSUS ON MODIFIED VERSIONS OF PROPOSALS RELATED TO TIF APPROVAL, PROPERTY OWNER NOTIFICATION AND THE USE OF EXCESS REVENUES. I'M VERY OPTIMISTIC, HOWEVER, THE CORPORATION OFFICERS, THE DEVELOPMENT DEVELOPER COMMUNITY AND SEVERAL COUNCIL MEMBERS HAVE EXPRESSED STRONG OPPOSITION TO THE RECOMMENDATIONS RESTRICTING NEW LIFE TECH PROJECTS AND NON-TECH PROJECTS ON THE BASIS OF AREA A MI LEVELS AND AREA POVERTY RATE PERCENTAGES. THESE ARE MAJOR POLICY, MAJOR POLICY DECISIONS THAT WILL HAVE A BROAD IMPACT. THE LIST OF RESEARCH DATA AND EVIDENCE THAT ARE REQUEST OF STAFF INCLUDES ONE EVIDENCE THAT 9% AND 4% LITECH AFFORDABLE HOUSING PROJECTS ACTUALLY DO FURTHER CONCENTRATE POVERTY IN DALLAS. TWO EVIDENCE THAT THE A MI PERCENTAGE AND AREA POVERTY RE RESTRICTION RESTRICTIONS WILL NOT DIMINISH THE CURRENT AFFORDABLE UNIT PRODUCTION LEVELS OF THESE TWO IMPORTANT PROGRAMS. THREE EVIDENCE THAT THE PROJECTS WILL PENCIL GIVEN INCREASED LAND COST OR LOWER MARKET UNIT RENTAL REVENUE ASSOCIATED WITH THE PROJECT AREA OF POVERTY RATE RESTRICTIONS. AND FOR EVIDENCE THAT THE DEGREE OF PRIORITY BEING PLACED ON THE DEVELOPMENT OF UNITS FOR RESIDENTS BELOW 50% AT [00:10:01] THE EXPENSE OF WORKFORCE HOUSING SERVING THOSE IN THE 50 TO 80% A MI LEVELS IS JUSTIFIED PER GIVEN THAT THE HOUSING DEPARTMENT'S 20 23 20 24 CITY SUPPORTED PRODUCTION REPORT INDICATES THAT ALREADY 45% OF ALL UNIT PRODUCTION IS SERVING 50% BELOW A MI RESIDENTS. ACCORDING TO DATA DEVELOPED BY DR. COLIN CLARK, DIRECTOR OF THE BUSH INSTITUTE AND SMU ECONOMIC GROWTH INITIATIVE, THE NUMBER OF FULLY AFFORDABLE HOUSING NEW BILLS IN MOST CITIES INCREASED SOMEWHAT FROM THE PERIODS OF 2010 TO 2016 TO 2017 TO 2023. DALLAS, BY CONTRAST, IS AN OUTLIER. AFFORDABLE NEW BUILDS FAIL 88% FROM THE EARLIER PERIOD TO THE LATTER. ALSO, NEW LITECH UNITS PER CAPITA IN DALLAS FROM 2010 TO 2021, ARE LOWER THAN MOST MAJOR METH METROPOLITAN AREAS IN THE SOUTH AND MOUNTAIN WEST AND THE LOWEST COMPARED TO THE FIVE TEXAS MAJOR METROPOLITAN AREAS. I LOOK FORWARD TO HAVING MORE OPPORTUNITIES FOR PROFESSOR CLARK TO ADDRESS ALL OF US HERE ABOUT THE VERY DETAILED STUDY THAT HE, UH, JUST PUBLISHED AND WE CIRCULATED TO MANY, UH, IN APRIL, 2025. THEREFORE, WE HAVE A LOT MORE EVIDENCE TO GATHER BEFORE WE CAN ENSURE THAT RECOMMENDATION RECOMMENDED CHANGES WILL NOT DIMINISH EPFC PROGRAMS AND WILL INSTEAD GIVE THEM GREATER FLEXIBILITY TO DELIVER EVEN MORE BADLY NEEDED UNITS ABOVE AND BELOW 50% A MI AND IN LOW AND HIGH OPPORTUNITY AREAS. I ENCOURAGE YOU ALL TO UTILIZE TODAY'S RETREAT TO ADD YOUR OWN PERSPECTIVES ON THESE IMPORTANT POLICY ISSUES. AND JUST SO YOU KNOW, UH, THE, THE ORDER THAT I HAD WRITTEN DOWN, I KNOW WE HAVE SOME, SOME GUESTS HERE. SO AFTER THE OPEN REMARKS, WHICH I JUST DID, WE'RE GONNA HEAR FROM, UH, C PAL AND THEN WE'RE, WE'LL HEAR A LEGAL REVIEW FROM, UH, SUMMER GREATHOUSE, AND THEN WE'LL HAVE A-D-P-F-C REVIEW, UH, PRESENTED BY VICE PRESIDENT TIM MONTGOMERY. AND THEN WE'LL OPEN IT UP FOR, UH, FIRST, UH, ANY DPFC BOARD OF DIRECTORS, UH, TO MAKE A COMMENT. AND THEN WE WILL MOVE TO COMMENTS FROM PROFESSIONAL ORGANIZATIONS, WHICH INCLUDE, UM, UH, DEVELOPERS, UH, THAT WE HAVE HERE IN THE ROOM. AND THEN COMMENTS FROM THE HOUSING STAFF WHO ARE HERE TODAY, UH, CYNTHIA AND THOR. THEN COMMENTS FROM THE CAO. UH, HERE TODAY IS, UH, HANNAH PEACOCK. THEN COMMENTS FROM THE DP DHFC. UH, AARON QUINTO IS HERE REPRESENTING AND COMMENTS FROM TREK, UH, KATIE O'BRIEN AND MICHAEL WILLIAMS. COMMENTS FROM T BY NICK WALSH SAID ADDITIONAL PUBLIC COMMENTS 'CAUSE WE WANNA MAKE SURE THAT WE ARE COLLABORATING, WE'RE CONNECTING HERE, WHICH I THINK IS REALLY NICE BECAUSE THERE'S REALLY NOT THAT MANY TIMES WE SEE EVERYBODY IN PUBLIC IN THE SAME ROOM. SO I THINK THAT IS NICE IN AND OF ITSELF. OH, HELLO. AND, UM, WE'RE COLLABORATING AND WE'RE COMMUNICATING. SO WE'RE DOING THE THINGS I THINK, UH, THE CITY MANAGER, UH, WANTS US TO DO. AND I THINK THAT'S A GOOD THING. I SEE THE POSTERS IN THE ELEVATORS AND NOW WE'RE PRACTICING WHAT WE SEE. SO I THINK THAT'S A GOOD THING FOR EVERYBODY. SO NOW I'D LIKE TO MOVE, UH, TO OUR FIRST, UH, SPEAKER, UH, ASHLEY FLORES AL. GOOD AFTERNOON. I'M ASHLEY FLORES. I'M THE CHIEF OF HOUSING AT THE CHILD POVERTY ACTION LAB OR AL. WE ARE A NON-PROFIT BASED HERE IN DALLAS, AND WE ARE FOCUSED ON INCREASING UPWARD ECONOMIC MOBILITY FOR DALLAS FAMILIES. UM, WE WORK ACROSS A NUMBER OF ISSUES, UM, INCLUDING HOUSING. AND SO I AM HERE TODAY THE INVITATION OF KEITH TO SHARE SOME OF OUR FINDINGS AND THE MOST RECENT RENTAL HOUSING NEEDS ASSESSMENT THAT WE PUBLISHED FOR THE CITY OF DALLAS. YOU SHOULD HAVE A COPY. IT'S THE NAVY BLUE REPORT IN FRONT OF YOU, AND IF YOU DON'T HAVE ONE, WE'VE GOT EXTRA COPIES THAT I KNOW SAM CAN DISTRIBUTE. UM, I ONLY HAVE A, A COUPLE MINUTES OF TIME, SO I'LL, I'LL JUST TOUCH ON SOME OF THE DATA POINTS THAT I THINK ARE MOST ADE TO TODAY'S CONVERSATION. BUT I WOULD ENCOURAGE FOLKS TO READ THROUGH THE REPORT IN ITS ENTIRETY. THERE'S LOTS OF, UM, GOOD INFORMATION RELATED TO HOUSING AND THEN ALSO JUST OUR SORT OF ECONOMIC OUTLOOK BROADLY. SHOULD I USE THE MICROPHONE, PLEASE? OKAY. SO WITH THAT, I'LL SHARE, UM, UH, JUST QUICKLY ABOUT HOW THE REPORT CAME TO BE. UH, AT C POW, WE [00:15:01] WORK PRIMARILY TO UNLOCK AND DEMOCRATIZE DATA. WE'RE REALLY INTERESTED IN HOW WE CAN USE DATA TO CREATE SHARED UNDERSTANDINGS OF ISSUES THAT ARE FACING OUR CITY, HOW WE CAN USE DATA TO POINT TO SOLUTIONS, AND THEN HOW WE CAN USE DATA TO TRACK PROGRESS OVER TIME. A COUPLE OF YEARS AGO, WE WERE REALLY EAGER TO DIG INTO THE RENTAL HOUSING MARKET TO BETTER UNDERSTAND THE GAPS BETWEEN SUPPLY AND DEMAND BY HOUSEHOLD INCOME, ALSO BY FAMILY SIZE, UM, OR, OR, UH, UNIT SIZE BEDROOM COUNT. AND SO WE, UH, WORKED WITH HR AND A ADVISORS, WHICH IS ALSO THE CONSULTANT FOR THE CITY OF DALLAS LAST YEAR ON THEIR ASSESSMENT AND ACTION PLAN. AND SO THE PRODUCT WAS A RENTAL HOUSING NEEDS ASSESSMENT THAT REALLY QUANTIFIES WHAT OUR NEEDS ARE IN THE RENTAL MARKET, BOTH TODAY WE ALSO DO A FORECAST TO 2035. SO I'LL SPEAK, UH, QUICKLY ABOUT SOME ISSUES RELATED TO AFFORDABILITY THAT COME UP IN THE REPORT AS WELL AS LOCATION, SINCE I KNOW THOSE TWO PIECES ARE GONNA BE ON THE AGENDA FOR DISCUSSION TODAY. UH, SO WHEN WE LOOK AT THE, UM, GAPS BETWEEN SUPPLY AND DEMAND IN THE RENTAL MARKET, WE FOUND THAT THE CITY OF DALLAS IS CURRENTLY SHORT AROUND 40,000 AFFORDABLE RENTAL UNITS FOR HOUSEHOLDS AT OR BELOW 50% AREA MEDIAN INCOME, WHICH IS AROUND $49,000 FOR A FAMILY OF FOUR IN $22. SO THIS IS A BIT LAGGED. UM, AS I MENTIONED, WE DID A FORECAST, WE WANTED TO BETTER UNDERSTAND WHERE WE'RE HEADED AND WHAT WE SEE IN THE DATA IS THAT BY 2035, WE EXPECT THAT SHORTAGE AT OR BELOW 50% A MI TO GROW TO 76,000 RENTAL UNITS AS ASSUMING THAT WE'RE FOLLOWING FOR THE SAME COURSE IN THE YEARS AHEAD. HOWEVER, WHEN WE LOOK AT THAT FORECAST OF 2035, WE SEE THAT RENTAL SUPPLY GAPS WILL INCREASINGLY START TO AFFECT HIGHER INCOME HOUSEHOLDS. SO BY 2035, WE EXPECT A MISMATCH BETWEEN SUPPLY AND DEMAND, A DEFICIT OF AFFORDABLE RENTAL UNITS FOR HOUSEHOLDS AT 60% A MI, 80% A MI, AND AT A-A-M-I-A HUNDRED PERCENT A MI, UM, AS AN EXAMPLE, BY 2035, FOR HOUSEHOLDS THAT ARE AT OR BELOW 80% A MI, WE EXPECT JUST 66 AFFORDABLE UNITS FOR EVERY 100 HOUSEHOLDS AT THAT INCOME LEVEL. UM, AND SO THAT GIVES YOU A SENSE OF SORT OF WHERE WE'RE HEADED. UM, WHEN WE LOOK AT THAT GROWING RENTAL GAP, WE WANTED TO BETTER UNDERSTAND WHAT'S DRIVING IT, WHY IS IT, WHY ARE WE EXPECTING IT TO GROW BY 2035? AND WHAT WE FOUND IS THAT THE ANTICIPATED GROWING GAP OVER THE NEXT DECADE WILL LIKELY BE LOSS OF NATURALLY OCCURRING AFFORDABLE HOUSING, NO RENTAL HOUSING THAT IS NOT CURRENTLY SUBSIDIZED BY GOVERNMENT PROGRAMS, BUT IS AFFORDABLE. NONETHELESS, WE ESTIMATE A POTENTIAL LOSS OF AROUND 54,000 NOAA RENTAL UNITS BETWEEN NOW AND 2035, WHICH REPRESENTS A 98% DECREASE IN OUR NOAA INVENTORY. UM, THE LAST THING I'LL MENTION RELATED TO AFFORDABILITY IS THAT ALTHOUGH WE KNOW THE SHORTAGE OF AFFORDABLE RENTAL UNITS TODAY IS MOST ACUTE AT OR BELOW 50% A MI, WE KNOW THAT ALL RENTER HOUSEHOLDS ARE INCREASINGLY SPENDING A LARGER SHARE OF THEIR INCOME ON RENT EVERY MONTH. UM, CITY OF DALLAS RENTER HOUSEHOLDS THAT ARE AT 51 TO 60% A MI, FOR EXAMPLE, SPEND AROUND 42% OF THEIR INCOME ON RENT ON AVERAGE FOR HOUSEHOLDS THAT ARE AT 61 TO 80% A MI, THEY'RE SPENDING, UH, 39% OF THEIR INCOME ON RENT EVERY MONTH ON AVERAGE. NOW, JUST A COUPLE OF QUICK NOTES ON LOCATION WHERE RENTAL HOUSING IS CITED IN THE CITY. UH, WHEN WE LOOK AT THE INVENTORY OF DE RESTRICTED AFFORDABLE UNITS, WE SEE THAT THEY ARE OVERREPRESENTED IN HIGH POVERTY CENSUS TRACKS IN THE CITY OF DALLAS, AND THEY SHOULD SAY, THIS IS THE TOTAL INVENTORY OF DE RESTRICTED AFFORDABLE UNITS, NOT ONES THAT HAVE JUST BEEN RE THE RECENTLY, BUT ONCE, YOU KNOW, DATING BACK DECADES. UH, DALLAS RANKS 11TH OUT OF THE 12 LARGEST CITIES IN AMERICA FOR LOCATING AFFORDABLE RENTAL UNITS IN HIGH OPPORTUNITY CENSUS TRACKS, WHICH ARE DEFINED AS CENSUS TRACKS THAT HAVE A MEDIAN INCOME GREATER THAN THE MEDIAN INCOME OF THE CITY OVERALL. UM, ONLY 17% OF THE CITY'S DEED RESTRICTED AFFORDABLE HOUSING INVENTORY IS LOCATED IN THESE MORE AFFLUENT CENSUS TRACKS. WE ALSO SEE, WHEN WE'RE LOOKING AT THE LOCATION OF DEED RESTRICTED AFFORDABLE HOUSING, THAT THEY'RE UNEVEN FROM 2010 TO 2023. ALMOST 40% OF ALL NEW DEED RESTRICTED UNITS WERE BUILT IN DISTRICT SEVEN AND EIGHT. UM, IN THAT SAME TIME PERIOD, 34% OF AFFORDABLE UNIT DELIVERIES WERE IN THE COMBINED SEVEN COUNCIL DISTRICTS WITH THE HIGHEST MEDIAN INCOMES. UM, FINALLY A NOTE ON NEW MARKET RATE, MULTIFAMILY DELIVERY, SINCE THAT IS RELEVANT. [00:20:01] WELL, UM, WHEN WE LOOK, UH, AT RECENT, UM, MARKET RATE MULTIFAMILY DELIVERIES, MOST HAVE BEEN BUILT IN CENTRAL DALLAS ALONG THE DALLAS NORTH TOLLWAY AND 75, AND THEN THE SORT OF CITY CENTER, UM, COUNCIL DISTRICTS TWO AND 14 ACCOUNTED FOR 55% OF ALL MARKET RATE. MULTIFAMILY DELIVERY IS BETWEEN 2011 AND 2023. UM, IN THE SAME TIME PERIOD, MARKET RATE MULTIFAMILY DEVELOPMENTS IN SOUTHERN DALLAS DISTRICTS, 3, 4, 5, 7, AND EIGHT ACCOUNTED FOR LESS THAN 3% OF TOTAL DEVELOPMENT CITYWIDE. SO THOSE ARE A COUPLE OF, UH, THE DATA POINTS THAT ARE REPRESENTED IN THE RENTAL HOUSING NEEDS ASSESSMENT. THERE ARE MANY MORE, UM, POINTS OF INTEREST THAT I HOPE YOU'LL LOOK INTO, UH, BUT THAT MIGHT GET US STARTED AS FAR AS A, A SORT OF A DATA SET AND UNDERSTANDING OF WHERE WE'RE AT. THANK YOU. THANK YOU VERY MUCH, UH, ASHLEY, APPRECIATE IT. UH, WE'LL MOVE TO, UH, OUR LEGAL REVIEW, UH, WITH, BY, WITH SUMMER GREATHOUSE FROM BRACEWELL. OKAY. YOU NEED THE MICROPHONE? GOOD AFTERNOON EVERYONE. UM, SO MY REMARKS TODAY ARE GOING TO CENTER AROUND THE POWERS AND CONTROL OF THE PFC, UM, AND PROVIDE A LITTLE BIT OF BACKGROUND BECAUSE I THINK WHERE WE STARTED A LOT OF THIS CONVERSATION AROUND POLICY WAS, UM, SOME MONTHS AGO TALKING ABOUT THE AMENDMENT OF THE BYLAWS OF THE PFC TO ACCOUNT FOR, UM, HOW TO USE REVENUE AND, AND SOME OTHER ITEMS. SO I THINK THAT'S RELEVANT BACKGROUND TO KIND OF GO BACK THROUGH THAT AND REMIND FOLKS, UM, OF WHAT THAT, UH, WHAT THAT ADVICE WAS. UM, SO AS A PUBLIC FACILITY CORPORATION, YOU'RE SUBJECT TO SEVERAL DIFFERENT LAWS, UM, BUT WITH RESPECT TO, UH, POWERS CONTROL, SPECIFICALLY, YOU'RE GOVERNED BY CHAPTER 3 0 3 OF THE TEXAS LOCAL GOVERNMENT CODE, AS WELL AS RELEVANT PROVISIONS OF THE TEXAS BUSINESS ORGANIZATIONS CODE THAT ARE APPLICABLE TO NON-PROFIT CORPORATIONS. SO WE'RE LOOKING AT THOSE TWO STATUTES AS WELL AS COMMON LAW DOCTRINES AROUND CORPORATE GOVERNANCE, UM, THAT APPLY TO BOTH PFCS AND NONPROFIT CORPORATIONS. UM, YOU'RE ALSO SUBJECT, OBVIOUSLY TO YOUR GOVERNING DOCUMENTS, YOUR ARTICLES OF INCORPORATION, AS WELL AS YOUR BYLAWS. UM, SO I THINK, AGAIN, THIS IS WHERE WE KIND OF STARTED THE LAW, THE LARGER CONVERSATION. UM, AND SO I'M JUST GONNA GO BACK KIND OF THROUGH THE LAWS REALLY QUICKLY. I'LL TRY NOT TO FALL ASLEEP, UM, OR YAWN OR OTHERWISE MAKE UGLY, UGLY FACES AT ME. THANK YOU, UM, . BUT THE, UM, SO UNDER CHAPTER 3 0 3, THE BYLAWS MUST BE ADOPTED BY THE BOARD OF DIRECTORS. SO THIS IS SOMETHING THAT, YOU KNOW, YOU GUYS NEED TO BE INVOLVED IN THAT CONVERSATION. UM, YOU MAY AMEND OR REPEAL YOUR BYLAWS. YOU MAY ADOPT NEW BYLAWS, AND THEN THOSE BYLAWS HAVE TO GO TO CITY COUNCIL FOR APPROVAL. UM, THEY CAN CONTAIN ANY PROVISION THAT, UH, IS CONSISTENT WITH LAW AND WITH YOUR ARTICLES OF INCORPORATION. SO ALL THESE DOCUMENTS NEED TO SPEAK TO EACH OTHER AND BE IN COMPLIANCE WITH LAW. UM, THE ARTICLES OF INCORPORATION, UM, CAN BE AMENDED BY THE CITY, CITY COUNCIL. LET'S BE CLEAR ABOUT THAT. UM, TO INCLUDE, UH, ANY, UH, PROVISIONS THAT ARE LAWFUL UNDER THE, THE CHAPTER 3 0 3 AND, AND THE TEXAS BUSINESS ORGANIZATIONS COACH. UM, THE 3 0 3 ALSO TALKS ABOUT THE GOVERNANCE SPECIFICALLY AND SAYS THE CORPORATION'S AFFAIRS ARE GOVERNED BY A BOARD OF DIRECTORS COMPOSED OF AT LEAST THREE INDIVIDUALS APPOINTED BY THE SPONSORS GOVERNING BODY. THAT'S THE CITY COUNCIL. SO THAT'S THE AFFAIRS ARE GOVERNED BY THE BOARD OF DIRECTORS PURSUANT TO ANY ADDITIONAL POLICIES. UM, THE SPONSOR OF THE CORPORATIONS OF THE CITY COUNCIL, AGAIN, MAY ALTER YOUR STRUCTURE, ORGANIZATION, PROGRAMS OR ACTIVITIES CONSISTENT WITH THE OTHER PROVISIONS OF THE CHAPTER AND, AND LAW. SO THEN LET'S MOVE ON TO THE BYLAWS. YOUR BYLAWS PROVIDE THE PROPERTY AND AFFAIRS OF THE PFC SHALL BE MANAGED BY A BOARD OF DIRECTORS. THEY ALSO PROVIDE THAT THE BYLAWS MAY BE AMENDED AS SET FORTH IN THE ARTICLES OF INCORPORATION. WELL, YOUR ARTICLES OF INCORPORATION ARE SILENT AS TO HOW YOUR BYLAWS MAY BE AMENDED. UM, I WAS NOT HERE WHEN, WHEN THOSE WERE DRAFTED, SO, UH, THAT WAS NOT, I WAS NOT YOUR LEGAL COUNSEL WHEN THAT HAPPENED. UM, THE ARTICLES PROVIDE THAT YOUR AFFAIRS SHALL BE MANAGED BY A BOARD OF DIRECTORS AS WELL, AND THAT THE BOARD OF DIRECTORS IS APPOINTED BY THE CITY COUNCIL. THAT'S PURSUANT TO STATUTE AS WELL, AND THEY PROVIDE FURTHER. THE GOVERNANCE OF THE PFC IS PURSUANT TO BYLAWS TO THE EXTENT THAT YOU'RE, THAT, THAT IS NOT INCONSISTENT WITH CITY'S RULES, REGULATIONS, AND RESOLUTIONS. SO TO DATE, TO MY KNOWLEDGE, THERE ARE NO RULES OR REGULATIONS THAT HAVE BEEN PASSED THAT WILL LIMIT YOUR ABILITY TO ADOPT BYLAWS, WHICH WE'VE ALREADY BEEN THROUGH. UM, THE AMENDMENTS WOULD THEN NEED TO BE APPROVED BY CITY COUNCIL. SO CITY COUNCIL IS GOING TO NEED TO BE INVOLVED IN, UH, AMENDING EITHER GOVERNANCE DOCUMENTS AND, AND IN, UM, YOU KNOW, MOVING FORWARD WITH POLICY. SO I JUST WANTED TO MAKE THESE POINTS VERY CLEAR, UM, IN TERMS OF WHAT THE PAST GUIDANCE HAS BEEN [00:25:01] AND WHAT IT CONTINUES TO BE. UM, ON THE MATTER OF WHERE THIS LEAVES US WITH RESPECT TO POLICIES, UM, OF THE CITY, UH, THAT AFFECT YOUR ABILITY TO MAKE DECISIONS. CITY COUNCIL DOES PURSUANT TO STATUTE HAVE THE ABILITY TO ALTER YOUR STRUCTURE PROGRAMS OR ACTIVITIES. AND IT ALSO HAS THE ABILITY TO REMOVE YOU AS, UH, DIRECTORS. SO THAT'S SOMETHING IMPORTANT TO REMEMBER. UM, AND ADDITIONALLY, UH, THE CITY COUNCIL ALSO HAS THE ABILITY, AND I THINK THIS IS SOMETHING THAT HAS BEEN STATED BEFORE, BUT I'LL JUST RE REITERATE IT, AND EVERYONE HERE KNOWS THIS, BUT CITY COUNCIL HAS THE ABILITY TO APPROVE OR DENY ANY PROJECTS, MULTI-FAMILY PROJECTS THAT MOVE THROUGH YOUR PROCESS THAT YOU APPROVE. SO REGARDLESS OF WHAT YOU DECIDE, CITY COUNCIL ALWAYS HAS THE ABILITY TO, TO, UM, EITHER APPROVE OR DENY THAT. AND THAT IS BOTH IN YOUR BYLAWS AS WELL AS IN THE STATUTE, BECAUSE YOU'RE A BOARD THAT IS NOT A MAJORITY OF ELECTED OFFICIALS. SO THAT'S, EVEN IF WE CHANGE YOUR BYLAWS, WE CAN'T REMOVE THAT. WE'RE GONNA HAVE TO GO TO CITY COUNCIL NO MATTER WHAT. UM, THERE'S SOME OTHER CONSIDERATIONS I THINK ARE IMPORTANT, UM, IN TERMS OF WHETHER THE BOARD SHOULD ACT INDEPENDENTLY. UM, THIS IS A QUESTION OF POLICY. THERE ARE SOME LEGAL PRINCIPLES THAT SHOULD GUIDE US IN THIS, INCLUDING THE DUTY OF CARE, AND THAT'S THE DUTY THAT YOU HAVE TO SERVE IN GOOD FAITH, IN THE BEST INTEREST OF THE CORPORATION AS A REASONABLE PERSON WOULD THE DUTY OF LOYALTY. AND THAT'S, UH, ACTING IN GOOD FAITH AND IN THE BEST INTEREST OF THE CORPORATION. AND, UM, KEEPING ANYTHING CONFIDENTIAL, IT NEEDS TO BE KEPT CONFIDENTIAL IN THE BEST INTEREST OF THE CORPORATION DUTY OF OBEDIENCE, WHICH IS ACTING IN FURTHERANCE OF YOUR STATED PURPOSES AND, UH, IN COMPLIANCE WITH YOUR GOVERNING DOCUMENTS AND LAW. SO THESE ARE ALL APPLICABLE TO ANY NONPROFIT CORPORATION THAT OPERATES IN THE STATE OF TEXAS, AND YOU ARE A NONPROFIT CORPORATION, SO THESE ARE APPLICABLE TO YOU AS WELL. UM, TRANSFERRING DUTIES OF THE BOARD, UH, TO, TO THE CITY OR TO THE CITY STAFF, COULD, UH, RESULT IN CONFLICTS OF INTEREST AS WELL AS AN ARGUMENT THAT THE PFC HAS BECOME AN INSTRUMENTALITY OF THE CITY, WHICH COULD ALSO SUBJECT THE CITY TO POTENTIAL PIERCING OF THE CORPORATE BAIL. UM, IN ADDITION TO MANY OTHER POLICY CONCERNS LIKE POTENTIAL LOSS OF SPECIALIZED EXPERTISE OR DISRUPTION OF ONGOING PROJECTS, OR SLOWING DOWN THE PROCESS OF ANY PROJECTS THAT YOU CURRENTLY HAVE IN THE PIPELINE AND, AND CONTRACTS THAT YOU CURRENTLY HAVE ENTERED INTO. SO AGAIN, THOSE ARE THINGS THAT WE WANNA MAKE SURE THAT WE ARE KEEPING IN MIND, UM, AS WE DISCUSS THE POLICY PROCEDURES GOING FORWARD. UM, AND IF THE PFC IS DETERMINED TO BE AN ALTER EGO OR MIRROR INSTRUMENTALITY OF THE CITY AND THE CORPORATE BAIL IS PIERCED, THE CITY COULD BE HELD FOR LIABLE, COULD BE HELD LIABLE FOR ANY OBLIGATIONS OF THE PFC. UM, THESE ARE POLICY CONSIDERATIONS THAT, UM, YOUR CITY COUNCIL MEMBERS WILL TO TAKE INTO ACCOUNT AS WELL, UM, IN CLOSINGS. FROM A LEGAL PERSPECTIVE, YOU NEED TO ACT IN COMPLIANCE WITH ALL OF THE CURRENT RULES FOR REGULATIONS AND GOVERNING DOCUMENTS THAT WE'VE OUTLINED. THANK YOU SUMMARY. APPRECIATE IT. UH, NOW FOR OUR PPFC REVIEW, UH, THE EXECUTIVE BOARD HAD ASKED, UH, KEN MONTGOMERY TO PRESENT THAT. THANK YOU. PRESENT, PAUL. THIS ONE'S RIGHT IN FRONT. OKAY. SENATOR RAPHAEL WARNOCK, THE JUNIOR SENATOR FROM GEORGIA SAID, THE PATHWAY TO HOUSING SHOULD BE FAIR AND EQUITABLE FOR EVERYONE. AND THE ACCESS TO AFFORDABLE HOUSING IS THE INFRASTRUCTURE. PEOPLE IN OUR COMMUNITIES NEED TO ELEVATE FAMILIES INTO THE WORKING CLASS AND THE MIDDLE CLASS. IT IS THE FOUNDATION THAT HELPS PEOPLE SUPPORT THEIR FAMILIES AND CONTRIBUTE TO THEIR ECONOMIES. ASHLEY PUT IT AS UPWARD ECONOMIC MOBILITY. THAT'S A VERY SUCCINCT WAY TO TO DESCRIBE IT. I BELIEVE THAT A LOT OF PEOPLE IN THIS ROOM BELIEVE THAT, AND THAT'S WHY WE HAVE TO GET THIS POLICY RIGHT. SINCE ITS INCEPTION, THE DALLAS PUBLIC FACILITY CORPORATION HAS ADDED A TOTAL OF 2,776 WORKFORCE UNITS AND 5,286 TOTAL UNITS WITHIN THE CITY LIMITS OF DALLAS. EVERY PROJECT IS NEW CONSTRUCTION, WHICH MEANS THE PREVIOUS USE OF THE PROJECT MOST OFTEN VACANT LAND WAS NOT ITS HIGHEST AND BEST USE, AND THAT MEANS THAT IT DELIVERED LESS THAN OPTIMAL VALUE WHEN IT COMES TO A VALOREM TAX REVENUE. AND LESS THAN OPTIMAL IS A POLITE WAY TO SAY IT. UM, IT'S VIRTUALLY NON-EXISTENT REVENUE. WORKFORCE UNITS ARE ALSO DELIVERED WITH GREAT EFFICIENCY TO THE PFC EXCLUSIVE OF THE REVENUE CREATED BY THE PFC AND INCLUSIVE OF THE ASSUMPTION THAT MARKET UNITS WOULD'VE BEEN CONSTRUCTED WITHOUT A PUBLIC INCENTIVE. WORKFORCE UNITS ARE DELIVERED FOR ROUGHLY $3,100 [00:30:01] PER UNIT ANNUALLY. AND, UM, SOME OF THESE VACANT, UM, PARCELS HAVE BEEN VACANT FOR DECADES. UM, SO WHEN WE SAY WITHOUT THE PUBLIC INCENTIVE, UM, WE, WE HAVE DECADES OF EVIDENCE THAT WITHOUT THE PUBLIC INCENTIVE, IT WOULDN'T HAVE BEEN DONE. SO LET'S COMPARE THAT TO THE AVERAGE SUBSIDY THROUGH THE NOTICE OF FUNDING AVAILABILITY PROCESSOR. THE NOFA, THAT'S THE CONVENTIONAL TOOL THAT HOUSING AFFORDABILITY, UM, OR THAT THE CITY OF DALLAS USES, UM, FOR HOUSING AFFORDABILITY. SO THAT WE SAID 3,100 PER UNIT THROUGH THE PFC THROUGH THE NOFA, IT'S ROUGHLY 142,000 PER UNIT. SO IT'S ABOUT 47 TIMES HIGHER. BY HARNESSING THE FINANCING POWER OF THE PRIVATE MARKET, WE CAN DELIVER WORKFORCE HOUSING AT AN EFFICIENCY THAT'S SIMPLY UNATTAINABLE BY CONVENTIONAL MUNICIPAL LEVERS OF HOUSING CREATION. OKAY, LET'S LOOK AT SOME OF THE ECONOMIC COMPONENTS. SO THE, UH, THE PUBLIC FACILITY IN ITS CURRENT CORPORATION, ITS CURRENT FORM, IS REMARKABLY EFFECTIVE AND EFFICIENT, BUT IT'S FUNDAMENTALLY AN ECONOMIC DEVELOPMENT TOOL. PROJECTS LIKE THE OAK HOUSE, BANYAN FLATS, MOUNTAIN CREEK APARTMENTS, UM, BURNETT LOFTS, THE HAYDEN AND DISTRICT NINE, WHERE I AM POWERLIGHT RESIDENTIAL LARK, SPUR FAIR PARK, BLOCKHOUSE SANTA FE, UM, I'M SURE I'M MISSING SOME, BUT THOSE DEMONSTRATE THE ECONOMIC CATALYST EFFECT OF MULTIFAMILY HOUSING DEVELOPMENT. THE ECONOMIC IMPACT OF FEE OF PFC HOUSING CREATION IS ALSO SOMETHING THAT CITY COUNCIL RECOGNIZED, UM, WHEN THE BYLAWS WERE ADOPTED, AND THEY WERE ADOPTED UNANIMOUSLY. ON MAY 9TH, 2019, COUNCIL CHOSE TO PLACE LIAISON DUTIES WITH THE OFFICE OF ECONOMIC DEVELOPMENT AND NOT WITH THE DEPARTMENT OF HOUSING COMMUNITY DEVELOPMENT. THE ECONOMIC IMPACT OF THE DALLAS PUBLIC FACILITY CORPORATION IS EMBEDDED IN THE CREATION OF THE CORPORATION, BUT CLEARLY IT'S IMPORTANT THAT WE LISTEN AND ACT ON THE OBSERVATION OF COUNCIL MEMBERS BECAUSE THEY'RE SPEAKING ON BEHALF OF THEIR CONSTITUENTS. AND IT'S INCUMBENT ON US TO CHART A PATH, UM, TO MAKE THE ORGANIZATION EVEN MORE EFFICIENT AND MORE EFFECTIVE. THERE ARE A COUPLE EXAMPLES OF THE PFCS WILLINGNESS TO, TO DO THIS AND HAVING ALREADY ACCOMPLISHED SOME OF THIS. UM, SO THOSE THAT THAT KNOW THE LEGISLATIVE HISTORY OF PFCS KNOW THAT SPECIAL TAXING, UM, DISTRICTS, PUDS AND MUDS, UM, PRIMARILY PROMPTED A LOT OF THE REFORMS IN HOUSE BILL 2071. IN THE LAST SESSION, THERE WAS CLEARLY A NEED TO IDENTIFY SUCH PROJECTS. AND NOW WITH THE HELP OF THE PFCS THIRD PARTY UNDERWRITER, A DALLAS BASED INVESTMENT BANK WITH NATIONAL REACH AND RECOGNIZE SPECIALTY IN MULTIPLE FINANCE, WE'RE ALERTED TO PROJECTS THAT ARE IN A TIF. AND SO WE WERE ABLE TO SOLVE THAT PROBLEM. THERE'S STILL MORE WORK TO DO TO UNDERSTAND THE ECONOMIC IMPACT. IT'S IN A TIF, BUT WE KNOW THAT IT'S IN A TIF NOW. AND SO WE'RE ABLE TO SOLVE THAT PROBLEM EFFICIENTLY AND EFFECTIVELY. ANOTHER SUCH EXAMPLE RESIDES IN THE PROPOSED BYLAW CHANGES THAT THE BOARD APPROVED ON OCTOBER 22ND, 2024. IN IT, THE BOARD RECOMMENDED TWO YEAR TERMS FOR BOARD MEMBERS INSTEAD OF THE CURRENT SIX YEAR TERMS, SO THAT THOSE FEDERAL ALIGNED WITH COUNCIL MEMBER AND CONSTITUENT NEEDS. THE PFC BOARD RULING IS COLLABORATE IS CLEAR AND UNDENIABLE. SO NOW WE CALL FOR COLLABORATION AMONGST ALL STAKEHOLDERS TOWARD THE GOALS AND REQUESTS OF CITY COUNCIL. COLLABORATION BEGINS WITH THOSE ASKS OF CITY COUNCIL BECAUSE THEY SIMPLY REFLECT THE NEEDS OF THEIR CONSTITUENTS. COUNCIL HAS BEEN CLEAR THEIR COMMENTS THROUGHOUT THE DISCUSSION OF THE PFC PRIMARILY, UM, THROUGH PARTICIPATION IN THE COMMITTEE OF HOUSING AND HOMELESSNESS SOLUTIONS BRIEFINGS. TO MAKE THOSE ASK A REALITY WILL REQUIRE COLLABORATION BETWEEN THE PFC BOARD, THE HFC BOARD, THE DEPARTMENT OF ECONOMIC DEVELOPMENT, THE KNOWLEDGE OF THE DEPARTMENT OF HOUSING COMMUNITY DEVELOPMENT ON COMPLIANCE MATTERS, AND THE INPUT OF PROFESSIONAL ORGANIZATIONS AND THEIR MEMBERS THAT HAVE EXPERTISE IN THE SUCCESSFUL DEVELOPMENT OF AFFORDABLE HOUSING UNITS. SO AS WE BEGAN THIS DISCUSSION OF COLLABORATION, I'M REMINDED OF LAST YEAR'S HOUSING BOND. UM, DURING THAT HOUSING BOND, WE, UH, WE ASKED FOR AS A, AS A COMMITTEE, I WAS ON THAT COMMITTEE. UM, WE WANTED MORE INVESTMENT IN THE HOUSING AND, UM, SAN ANTONIO DID $150 MILLION, UM, HOUSING BOND ISSUE. UM, I BELIEVE OURS WAS 67 OF MEMORY SERVES. AS A MEMBER OF THAT TASK FORCE, I CONSISTENTLY VOICE THAT WE REPLICATE, UM, THAT SUCCESS, BUT WE HAD TO REPLICATE THE ACTIVITY AND PROCESS OF CITIES LIKE SAN ANTONIO. [00:35:02] SO ON THIS ISSUE OF RESTRUCTURING HOUSING ACTIVITIES MORE EFFICIENTLY LEVERAGED THE HFC AND PFC TOOLS, THE CITY OF OF, UH, SAN ANTONIO KIND OF DEMONSTRATES WHY WE WEREN'T ABLE TO, TO GET THAT FAR WITH OUR HOUSING BOND. SO ON THIS PARTICULAR ISSUE, ONE THAT WE'RE TALKING ABOUT NOW, THE CITY OF SAN ANTONIO CREATED A TASK FORCE THAT HELD 20 PUBLIC FORUMS, ENGAGED 80 STAKEHOLDERS, HELD SIX PUBLIC MEETINGS SPECIFIC TO THE ISSUE, AND TOOK OVER A YEAR. I, I WOULD ARGUE THAT THEY HAVE ONE OF THE MOST EFFECTIVE, UM, HOUSING POLICY AND HOUSING STRUCTURES IN THE STATE. BY MY COUNT, THIS IS OUR SECOND PUBLIC INPUT MEETING. SO I THINK WE HAVE A WAYS TO GO IN CLOSING. OUR CITY DESERVES AN ECONOMIC THAT IS DATA DRIVEN, SOLUTION ORIENTED, AND INCLUSIVE. AS WE EXECUTE ON THAT TYPE OF POLICY, WE LOOK FORWARD TO POSITIVE EFFECTS THAT OUR EFFORTS HAVE ON THIS STUBBORN HOUSING CRISIS THAT CONTINUES UNABATED. THANK YOU ALL FOR OFFERING YOUR EXPERTISE TODAY AND FOR YOUR INSIGHT INTO THIS ONGOING POLICY DISCUSSION. WE LOOK FORWARD TO BRINGING THE FRESH REQUEST OF CITY COUNCIL THROUGH A POLICY LENS THAT INCORPORATES THE INSIGHTS OF ECONOMIC DEVELOPMENT AS WELL AS HOUSING EXPERTS, INCLUDING THE SUGGESTIONS OF CITY STAFF AS WE CONTINUE TO REFINE THE EFFECTIVENESS AND THE EFFICIENCY OF THE PUBLIC FACILITY CORPORATION. THANK YOU. THANK YOU VERY MUCH. BUT I GUESS I SHOULD USE THIS. I USE IT IN THE BEGINNING. SHOULD I REPEAT ON MY OPEN REMARKS? . ALRIGHT. ALRIGHT, THANK YOU. OKAY. AND NOW WE'LL HEAR, UH, COMMENTS. UH, I WANNA MAKE SURE THAT, UH, IN THIS PROCESS THAT, UH, EVERYBODY HAS A CHANCE TO BE HEARD. AND, UH, SO I'M JUST, I'M JUST GONNA GO DOWN THE LIST. YOU DON'T HAVE TO HAVE A COMMENT, BUT IF YOU WANT TO HAVE A COMMENT NOW, UH, PLEASE DO SO. UH, AND I ALSO JUST WANNA SAY THANK YOU AS WE GO DOWN THE LIST AND JUST, UH, RECOGNIZE THE BOARD MEMBERS HERE. 'CAUSE UH, HONESTLY, THIS HAS BEEN ONE OF THE LATEST BOARDS, UH, I'VE SERVED ON. UH, IT'S BEEN VERY, A VERY PROFESSIONAL BOARD. WE HAVE EXPERTISE FROM ALL DIFFERENT AREAS AND, UM, IT'S BEEN A, A PRIVILEGE AND A PLEASURE TO GET TO KNOW ALL OF Y'ALL HERE ON THE BOARD. SO I'M JUST GONNA GO BY DISTRICT NUMBER. UH, SO DIRECTOR COUNCIL, THANK YOU VERY MUCH FOR YOUR SERVICE. IF YOU HAVE ANY COMMENTS, UM, NO COMMENTS. THIS OH, SURE, NO COMMENTS. NO. UH, THANK YOU. UH, ALL I WANTED TO SAY IS THAT, UH, I FEEL ON BEHALF OF COUNCIL MEMBER WEST THAT IT'S EXCITING. DISTRICT ONE HAS BY FAR, UH, MAJORITY OF PROJECTS THAT HAVE BEEN APPROVED BY THE PFC. I THINK EVERY ONE OF THEM HAS BEEN SORT OF A WIN. UH, THEY'RE ALSO SORT OF, NOT JUST EVEN ONE PART OF DISTRICT, UH, ONE, IT IS, UH, ACROSS THE AREA. UM, SO IT'S NOT EVEN JUST ONE PART OF DISTRICT ONE. SO I THINK THAT REFLECTS THE STRENGTH OF THE PFC AS AS WE'RE STARTING TO TALK ABOUT SUBMARKETS WITHIN LARGER AREAS. I THINK THAT'S BEEN A PLUS. UM, I ACTUALLY, THE ONLY QUESTIONS I HAD WERE SORT OF ADDRESSED THANKS TO SUMMER. UH, SOME QUESTIONS I HAD, SO, SO I CAN TOOK MY NOTES. WE'RE DONE WITH THAT. UH, CERTAINLY LOOK FORWARD TO DISCUSSION ABOUT COLLABORATION. UM, I THINK WE'RE AT A, AN EXCITING JUNCTURE. UM, AND I THINK A LOT OF WHAT WE'LL BE DOING GOING FORWARD IS TO SEE, YOU KNOW, NOT JUST HOW MANY PROJECTS WE DO, UH, BUT AS WE LOOK TO OTHER AREAS THAT PFC MIGHT BE INVOLVED WITH, UM, ALMOST TO THE POINT WHERE ALMOST IS EVERY UNIT A GOOD UNIT IS SOMETHING THAT, UH, WE'LL NEED TO THINK ABOUT A LITTLE BIT, UH, WITH THE PROJECTS THAT WE LOOK FORWARD TO AS FAR AS APPROVING THEM. UH, BUT IF THE NEED IS GREAT, THEN I THINK THAT IS SOMETHING TO KEEP IN MIND. UM, BECAUSE, UH, AS WE GROW AND, AND, AND, AND COVER MORE GROUND, I THINK THAT QUESTION WILL ALWAYS BE THERE. EVERY UNIT'S A GOOD UNIT. SO, UH, BUT WE MAY NEED TO SAY, WELL, THEY NOT ALWAYS, UH, SO I'LL JUST LEAVE IT AT THAT AS A QUESTION AS WE, UH, CONSIDER THIS GOING FORWARD. AND THIS WILL GIVE US DIRECTION, I THINK, AS WE LOOK AT INDIVIDUAL PRO PROJECTS IN THE FUTURE. SO I THINK THANKS TO ALL FOR BIG PART OF THIS HAPPEN TODAY. THANK YOU VERY MUCH. UH, DIRECTOR HANSEL, UH, DISTRICT THREE, UH, DIRECTOR MARSHALL, CAN YOU HEAR US ONLINE? AND IF YOU'D LIKE TO MAKE A COMMENT, UH, PLEASE DO SO NOW. OR IF YOU'RE HAVING CONNECTION ISSUES, WE CAN MOVE BACK TO YOU. I DON'T HAVE ANY COMMENTS. I'M JUST GLAD TO BE A PART OF THE GROUP. THANK YOU. DIRECTOR MARSHALL, CAN YOU HEAR ME? YES, YES, I CAN HEAR YOU. THANK YOU. THANK YOU. UH, DISTRICT FORWARD DIRECTOR STINSON AND OUR SECRETARY, OUR BOARD SECRETARY, [00:40:04] WANT TO PROBABLY BEEN, HAVE MUCH TO COMMENT ON, BUT SINCE YOU INTERVIEW THE MIC AGAIN. UM, I'VE BEEN HERE PRETTY MUCH SINCE THE INCEPTION OF, OF PFC. UH, I CAN SAY THAT, UH, I CAME WITH A, UH, UH, ACTUALLY, UM, NOT REALLY, UH, KNOWING WHETHER I WAS TRULY IN FAVOR OF THIS, UH, PROCESS, UH, SINCE I, UM, HAVE ALWAYS BEEN A PROPONENT OF HOME OWNERSHIP AND, UH, WANTING THE CITY TO GET MORE SO INTO BUILDING HOMES, BUT, UM, TRY TO BE THE BEST STUDENT THAT I CAN BE. SO I DON'T KNOW THAT I HAVE ANYTHING INCISIVE TO SAY AS I'M JUST A, A GRASSROOTS, UH, CITIZEN. BUT, UH, I HAVE DEFINITELY SEEN, UH, NOT ONLY THE NEED BASED ON INFORMATION THAT HAS BEEN PRESENTED, UH, BY THE CITY AND ALSO, UH, BY AND OTHERS, AND THINGS THAT I'VE STUDIED HAVE ACTUALLY SHOWN, UH, THAT THE NEED IS THERE AND, UH, THAT PEOPLE ALSO ARE TACKLING THAT NEED AREAS THAT, UH, WE'RE WORKING IN AND OTHERS. BUT WE'VE ALSO VISITED, UH, RECENTLY COMPLETED, UH, PROJECTS. AND I HAVE TO SAY THAT, UH, THEY'VE BEEN VERY NICE, UH, VERY WONDERFUL PROJECTS AND HAVE SPOKEN TO SOME OF THE RESIDENTS WHO SIGNED UP, HAVE NOT FOUND OR HAD NOT SPOKEN TO ONE PERSON WHO, UH, HAD A NEGATIVE THING TO SAY ABOUT THE PROCESS OF, UH, BECOMING A TENANT OF ONE OF THESE, UH, PROJECTS. I HOPE THAT, UH, THROUGH THIS PROCESS TODAY, THAT, UH, WE CAN OPEN UP SOME BETTER AVENUES, UH, OF COOPERATING AND COMMUNICATING, UH, TO FACILITATE, UH, SOMETHING BETTER FOR THE CITIZENS OF DALLAS. UH, THAT'S WHERE I NOW STAND, JUST KNOWING THAT THIS IS ONE COMPONENT TO HELP THOSE WHO ARE IN NEED, UH, ONE COMPONENT THAT CAN HELP A FAMILY, UH, AT LEAST STAY OFF THE STREETS AND, UH, NOT SPEND SUCH A GREAT AMOUNT, GREAT PERCENTAGE OF THEIR INCOME, AND PERHAPS THEY CAN DEAL SOMETHING THROUGH SOME SAVINGS OR I TAKE BETTER TAKE CARE OF THEIR CHILDREN OR THEIR PARTICULAR, UH, AIMS AND GOALS. SO I'M, I'M, I'M, UH, GLAD TO BE PART OF THIS PROCESS. I, UH, CAME TO THIS PARTICULAR, UH, BOARD AFTER SERVING A COUPLE OF YEARS THERE WITH CITY PLANNING COMMISSION, AND, UH, HAVE PROBABLY ABOUT 12 YEARS WITH THE CITY PLAN COMMISSION, DIFFERENT, UH, COUNCIL MEMBERS. SO I UNDERSTOOD THAT FROM THAT PERSPECTIVE, BUT THIS WAS TOTALLY DIFFERENT. AND I KNOW THAT WE HAVE, I USUALLY SAY WE HAVE, UH, SEEN THIS EVOLVE. WE TOOK A LITTLE BABY, IF YOU WILL, ACTUALLY AN EGG, AND WE HATCHED IT. AND, UH, WE BEGAN REALIZING OVER TIME THAT THIS IS WHAT, UH, THIS BABY CAN DO. AND I BELIEVE NOW THAT, UH, UH, THIS BABY IS WALKING AND TALKING AND ACTUALLY DOING SOMETHING POSITIVE FOR, UH, THE COMMUNITY AT LARGE, AND IT STILL HAS A LOT MORE POTENTIAL. AND THAT IS WHERE I AM TRULY, UH, LOOKING FORWARD TO JUST THE ACTUAL POTENTIAL IN ASSISTING THE NEEDS OF THE CITY. UH, WITH THAT, I'LL END MY SHORT , GET IT BACK OVER. THANK YOU. THANK YOU, DIRECTOR STINSON MOVING, UH, TO DISTRICT EIGHT. UH, DIRECTOR BROWN. UH, WOW. I STILL DON'T KNOW, HOW DO I END UP HERE? I JUST WANTED TO, TO GO CREATE HOUSING. UH, BUT ONE THING I JUST, JUST SHARED, UH, I'VE HAD A LOT OF CONVERSATIONS WITH A LOT OF FOLKS AT THIS TABLE IN THIS ROOM, AND IT'S, IT'S REFRESHING THAT WE'RE ALL TOGETHER IN THE SAME SPACE TRYING TO FIGURE IT OUT. SO I'M HAPPY TO BE A PART OF THIS PROCESS TO FIGURE OUT, YOU KNOW, HOUSING, UH, IN OUR CITY FOR THE NEXT, GOSH, I GUESS WE'RE, WE'RE TALKING ABOUT THINGS IN THE NEXT 20, 30 YEARS, HOW IT'LL PLAY OUT. SO I'M REALLY EXCITED TO BE HERE AND, AND BE A PART OF THIS ENVIRONMENT AND ECOSYSTEM. THANK YOU. DIRECTOR BROWN. UH, DISTRICT NINE, VICE PRESIDENT MONTGOMERY. [00:45:01] NO FURTHER COMMENTS. UH, DISTRICT 10, UH, DIRECTOR HOLMES. THANK YOU, MR. PRESIDENT. UH, MARK HOLMES, DISTRICT 10. UH, JUST THANKFUL TO COUNCILWOMAN STEWART FOR, UH, REAPPOINTING ME TO THIS BOARD. UH, I'VE, UH, ENJOYED, UH, TACKLING THE HOUSING ISSUE WITH ALL MY FELLOW BOARD MEMBERS AND STAFF, AND APPRECIATE EVERYBODY'S PASSION FOR WHAT WE'RE TRYING TO DO, TO LIVE UP TO NOT ONLY THE INTENT OF THE STATUTE THAT WE WERE FORMED UNDER, BUT HOW WE FORMED IT, UH, WITH OVERSIGHT FROM THE COUNCIL, AND MAKING SURE WE'RE DOING THINGS THE RIGHT WAY TO DELIVER UPON OUR MISSION OF DELIVERING, UH, WORKFORCE HOUSING TO, UH, TO DALLAS. SO, UH, AGAIN, UH, THE, I WILL ECHO, UH, SOME OF THE COMMENTS ALREADY MADE ABOUT THE LEVEL OF EXPERTISE AND THE LEVEL WHICH WE CONDUCT OUR BUSINESS AS A BOARD. I'VE BEEN ALSO IMPRESSED, SO APPRECIATE EVERYBODY'S PROFESSIONALISM AND INPUT AND LOOK FORWARD TO WORKING WITH EVERYBODY IN THE ROOM AS WE, UH, TACKLE THIS VERY TOUGH ISSUE. THANK YOU. THANK YOU VERY MUCH. UH, DISTRICT 12, DIRECTOR WINTERS. THANK YOU, MR. PRESIDENT. UH, I REPRESENT DISTRICT 12. I'M THET, PFC BOARD, AND, UH, IT IS ACTUALLY BEEN MY FIRST FORAY INTO PUBLIC SERVICE. SO UNLIKE, UH, DIRECTOR SPENCER AND PRESIDENT PHONE CALL, UH, IT, IT IS BEEN A FASCINATING LEARNING EXPERIENCE TO SEE, UM, KIND OF HOW WE CAN ALL COME TOGETHER AND, AND PUT OUR DIFFERENT SKILLS AND KNOWLEDGE TO GOOD WORK FOR THE CITY. UM, YOU KNOW, ECHOING, UH, VICE PRESIDENT, UH, KEN MONTGOMERY'S COMMENTS ABOUT ECONOMIC DEVELOPMENT, UM, I, I THINK IT'S REALLY IMPORTANT FOR US TO, TO REALIZE AND, AND TO BE ABLE TO CONVEY TO THE CITY AND, AND, AND THE, THE POPULATION ITSELF, UM, THAT, LIKE, WE'RE NOT HERE JUST TO PUT PEOPLE IN HOMES, LIKE THE PEOPLE WE'RE PUTTING IN HOMES DO CONTRIBUTE TO THE CITY IN, IN A FAIR VARIETY OF DIFFERENT WAYS WHERE THEY ARE AT A MI 50, 60, 80, A HUNDRED. UH, WE, WE WANT EVERYONE TO BE HERE AND TO HAVE A HOME HERE IN THE CITY. UM, AND THAT'S NOT NECESSARILY JUST, YOU KNOW, TO THE, THE HIGHER POVERTY AREAS, UM, TO BRING, YOU KNOW, DEVELOPMENT THERE. BUT ALSO, UM, AS COUNCIL MEMBERS, UH, BALU AND SCHULTZ SAID AT RECENT CITY COUNCIL, UM, PART OF THE OPPORTUNITY THAT WE HAVE HERE IS TO ALSO PROVIDE ECONOMIC OPPORTUNITY FOR LOWER AMIS IN HIGHER OPPORTUNITY ZONES. UM, I'M VERY EXCITED THAT WE'VE ACTUALLY BEEN ABLE TO APPROVE AND MOVE FORWARD WITH, UH, A COUPLE PROJECTS RECENTLY, NORTH OF 6 35, WELL, ONE'S OFF 6 35, UH, THE DISTRICT 11, ONE ON ALPHA ROAD ON 1 6 35, UH, TO ACCEPT, TO EXTEND OUR PFC REACH NORTHERN NORTH INTO THE CITY, UH, AWAY FROM, YOU KNOW, ALL THE AREAS WE'RE ABLE TO PROVIDE BENEFIT ACROSS THE FULL AREA OF THE CITY INSTEAD OF JUST, UH, SOUTH OF, UH, SOUTH OF I 30. UH, AND WHILE I DO APPRECIATE THAT WE ARE WORKING ON VARYING HOUSING OPTIONS, YOU KNOW, ACROSS NOT ONLY DALLAS, BUT UFW AS ITSELF, UM, I THINK IT'S ALSO IMPORTANT FOR DALLAS IN DIFFERENT AREAS TO UNDERSTAND WHERE WE WANT TO KEEP PEOPLE IN DALLAS. UM, YOU KNOW, YOU KNOW, WE HAVE GREAT CITY PARTNERS IN SUBURBS, PLANO, MESQUITE, ADDISON, JUST IN THE NORTH SIDE OF IT. AND, YOU KNOW, THOSE PEOPLE DO COME INTO DALLAS AND CONTRIBUTE A LOT TO OUR ECONOMY, BUT I WANNA MAKE SURE THAT WE ALSO PROVIDE OPPORTUNITY FOR PEOPLE TO LIVE IN DALLAS IN DIFFERENT AREAS ACROSS THE CITY AS WELL. THANK YOU. THANK YOU, DIRECTOR WINTERS, AND, UH, I HAVE NO FURTHER COMMENTS AS DIRECTOR DISTRICT 14. UH, MOVE OVER TO DISTRICT 11, UH, DIRECTOR TILLIS AND OUR TREASURER. THANK, THANK YOU MR. PRESIDENT AND THANK EVERYBODY FOR PARTICIPATING IN TODAY'S RETREAT. I HOPE LUNCH WAS GOOD. I SIGNED THE CHECK. SO ANYWAY, I THINK I, IT'S EVIDENT, UH, TO EVERYONE HERE THAT THE NEED FOR AFFORDABLE HOUSING IN DALLAS IS ACUTE. UM, I ECHO WHAT OUR MAYOR HAS SAID. TIME AND AGAIN, BUILD BABY BUILD. AND, UM, I BELIEVE WE AS AN ENTITY, AS A BOARD HAVE A RESPONSIBILITY TO CREATE HOUSING THAT'S AFFORDABLE FOR OUR TEACHERS, OUR FIRST RESPONDERS, THOSE PEOPLE WHO ARE AT MEDIUM OR LOWER IN INCOME BRACKETS. UM, NOW EACH OF US, UH, WERE SELECTED TO SERVE ON THE BOARD BY OUR RESPECTIVE COUNCIL MEMBERS. AND AS SUMMER HAS SO APTLY TOLD US, WE DO HAVE A FIDUCIARY RESPONSIBILITY TO THE SHAREHOLDER OF THIS ORGANIZATION, WHICH IS THE CITY OF CA, UH, CITY OF DALLAS. WE'RE ACCOUNTABLE TO SERVE TO, AND WE SERVE AT THE PLEASURE OF THE CITY COUNCIL. UM, TO MY KNOWLEDGE, AND I THINK THIS IS IMPORTANT BECAUSE IT'S ONE OF THE REASONS WE'RE HERE TODAY, THE BOARD, THE CITY COUNCIL HAS NOT DELEGATED THAT RESPONSIBILITY TO ANYONE. SO IT IS UP TO US TO RUN THIS ORGANIZATION, [00:50:01] OF COURSE, SUBJECT TO, UM, THE CITY COUNCIL. I'D BE REMISS IN MY COMMENTS THIS MORNING IF I DIDN'T MENTION, UH, THE EXERCISES TO WHICH WE'VE BEEN SUBJECTED BY THE ACTIONS OF HHS AND THE HOUSING DEPARTMENT, ALTHOUGH NOT IN ANY WAY MALICIOUS. UM, I THINK IT'S BEEN A DEFINITE, UH, DISTRACTION FROM OUR MISSION AND FROM WHAT WE'RE, WE'RE ATTEMPTING TO ACCOMPLISH AND UNPRODUCTIVE IN TERMS OF BEING TIME CONSUMING. WE AS BOARD MEMBERS HAVE ALWAYS WELCOMED THE OPPORTUNITY TO WORK TOGETHER AND ALWAYS WILL REMAIN, REMAIN OPEN TO SUGGESTIONS. BUT WHAT SHOULD NOT OCCUR EFFORT ARE EFFORTS WHICH YOU SERVE THIS BOARD'S RESPONSIBILITIES. SO WE ARE LOOKING FORWARD TO A PATH FORWARD THAT INVOLVES COLLABORATION AND WHICH ALLOWS US TO DISCHARGE OUR RESPONSIBILITIES IN ALLOWING US TO INVEST IN OUR CITY AND CREATE WORK WORKFORCE HOUSING. THANK YOU. THANK YOU, TREASURER CALLIS, AND, UH, ALSO WANTED TO JUST THANK ALL OF THE BOARD MEMBERS AS I DID EARLIER. UM, AND IN FORUMS LIKE THIS, WE REALLY DON'T HAVE, DON'T REALLY HAVE A CHANCE SOMETIMES JUST TO GO DOWN ONE BY ONE AND, UH, UH, ASK EVERYONE WHAT THEIR COMMENTS IS. 'CAUSE SOMETIMES WE DON'T HAVE A COMMENT ON A, ON A DEAL. WE HAVE IT ALL MADE UP IN OUR MIND ON HOW WE'RE GOING TO VOTE. UH, BUT THANK ALL, ALL OF Y'ALL FOR YOUR SERVICE. AND SO, UH, NOW WE'LL LOOK FOR COMMENTS FROM PROFESSIONAL ORGANIZATION. UH, MR. UH, SWEET, HANDSOME, WOULD YOU LIKE WHEREVER YOU'D LIKE? OKAY. UM, STAND, UM, BROUGHT UP HANDOUTS IF YOU'D LIKE TO. IS THIS FINE? YES. OKAY. UM, I TOOK THE LIBERTY OF JUST KIND OF WRITING DOWN MY THOUGHTS SO I CAN AT LEAST BE SOMEWHAT COHERENT. UM, MY NAME IS REINHARDT SCOTT SWED HANSON JUNIOR. I LIVE AT 9 9 2 5 LAKE DALE DRIVE. I GREW UP IN DISTRICT 10. I CURRENTLY RESIDE IN DISTRICT NINE AND AM PRESENT PRESENTLY WORKING IN DISTRICT FOUR AND DISTRICT THREE AT SMART LIVING RESIDENTIAL. OUR MISSION IS SIMPLE TO PROVIDE HIGH QUALITY, WELL-DESIGNED HOUSING AT AFFORDABLE PRICE POINTS. WE BELIEVE THE HOUSING SHORTAGE IS SOLVED WITHIN THE SOUTHERN SECTOR OF DALLAS AND ARE INVESTING AS SUCH WITH THREE PROJECTS IN VARIOUS STAGES OF DEVELOPMENT. ONE, WE ARE CURRENTLY COMPLETING THE DISTRICT FOUR IN CEDAR CREST ACROSS FROM ROOSEVELT HIGH SCHOOL, A SECOND IN DISTRICT THREE ACROSS FROM UNT DALLAS CAMPUS, CURRENTLY IN PRE-DEVELOPMENT STAGES, AND THE THIRD IN DISTRICT FOUR IN EARLY STAGES PRE-DEVELOPMENT. THE FIRST TWO ARE PFC APPROVED PROJECTS, AND IN THE CASE OF THE LAST PROJECT, THE DPFC IS A PART OF OUR CURRENT UNDERWRITING ASSUMPTION. ALL ARE LOCATED WITHIN CENSUS TRACKS WITH GREATER THAN 20% POVERTY. AS AN ASIDE, I'D LIKE TO ASK FOR A LITTLE LATITUDE FROM THOSE LISTENING. I CONSIDER ALL PARTIES INVOLVED IN THIS DISCUSSION TO BE INCREDIBLY IMPORTANT PARTNERS IN OUR EFFORT TO DELIVER HIGH QUALITY HOUSING AT AFFORDABLE PRICE POINTS. MY COMMENTS ARE BROUGHT FORTH IN GOOD FAITH IN HOPES OF CONTRIBUTING TO THIS HEALTHY DISCUSSION. TO THAT END, I OFFER THE FOLLOWING. WITH ALL DUE RESPECT TO ALL INVOLVED, I BELIEVE THE DPFC PROGRAM IS AN EFFECTIVE TOOL FOR ADDING AFFORDABLE RENTING HOUSING IN ALL AREAS IN DALLAS. IT FACILITATES THE ADDITION OF AFFORDABLE UNITS AND HIGH OPPORTUNITY AREAS WHERE ROBUST RENTAL RATES HAVE ALREADY BEEN ESTABLISHED FOR MARKET RATE UNITS BY ECONOMICALLY INCENTIVIZING DEVELOPERS TO FOREGO 100% MARKET RATE PROJECTS. IN DOING SO, THE PROGRAM CAN AFFORD ITS END USERS OPPORTUNITIES TO LIVE IN AREAS WHERE A HIGH CONCENTRATION OF QUALITY JOBS ARE LOCATED, GIVE PARTICIPANTS ACCESS TO GOOD SCHOOLS AND CONTRIBUTE TO AVOIDING A CONCENTRATION OF POVERTY. THAT SAID, I'D LIKE TO FOCUS MY CONTRIBUTION TO THIS DISCUSSION ON THE TWO AREAS I BELIEVE I HAVE EXPERIENCED TO DRAW FROM, UM, THOSE BEING NUMBER ONE, DEVELOPING MULTI-FAMILY HOUSING IN SOUTHERN DALLAS, AND TWO, WORKING WITHIN CENSUS TRACKS THAT ARE GREATER THAN 20% POVERTY RATE. AS I MENTIONED PREVIOUSLY, I CURRENTLY HAVE THREE PROJECT DALLAS WITHIN LOW INCOME CENSUS TRACKS. SOMEONE PROBABLY NEEDS TO MUTE. YEAH. AS CURRENTLY STRUCTURED, THE DPFC PROGRAM, NUMBER ONE, INDIVIDUALLY AS A STANDALONE INCENTIVE ASSISTS IN THE GRADUAL ECONOMIC DEVELOPMENT OF LEADING EDGE TRANSITIONING AREAS SUCH AS CEDAR CREST THAT WOULD OTHERWISE REMAIN UNTOUCHED BY HELPING DEVELOPERS OFFER THEIR CAPITAL SOURCES AND APPROPRIATE RISK ADJUSTED RATE OF RETURN OR DEBT SERVICE COVERAGE RATIO FOR WORKING IN DE NOVO HISTORICALLY OVERLOOKED AREAS. NUMBER TWO, IT SPURS TRANSFORMATIVE ECONOMIC DEVELOPMENT DEEPER WITHIN THE SOUTHERN SECTOR [00:55:01] BY CREATING OPPORTUNITIES FOR OTHER CITY INCENTIVES AND PROGRAMS TO BE INVESTED IN AFFORDABLE HOUSING INITIATIVES. SHARING THE BURDEN PLACED ON THE CITY OF DALLAS ECONOMIC DEVELOPMENT DEPARTMENT TO SUPPORT TRANSFORMATIVE PROJECTS, MINIMIZING THE ECONOMIC INCENTIVE NEEDED FROM THE EDC TO SUPPORT HOUSING, THEREBY FREEING UP EDC DOLLARS TO BE UTILIZED FOR OTHER COMMERCIAL TRANSPORTATION INFRASTRUCTURE, WALKABILITY AND QUALITY OF LIFE IMPROVEMENTS THAT BENEFIT ALL INCLUDING THE SURROUNDING COMMUNITIES, INCREMENTALLY ADDING HIGH QUALITY MARKET RATE HOUSING IN AREAS HISTORICALLY DEVOID OF ANY. AND LASTLY, PROMOTING THE DEVELOPMENT OF HIGH QUALITY, TRUE MIXED INCOME HOUSING COMMUNITIES, QUALITY HOUSING OPTIONS THAT DRAW PEOPLE AWAY FROM OUTER SUBURBS SUCH AS CEDAR HILL AND DESOTO BACK INTO THE CITY. I'D LIKE TO REFERENCE, DO I HAVE A LITTLE? OKAY. UM, I'D LIKE TO REFERENCE TWO SMART LIVING PROJECTS, SMART LIVING RESIDENTIAL PROJECTS TO ILLUSTRATE THE FIRST BEING OUR 1710 MORELL AVENUE PROJECT. THE FINCH, OUR 153 UNIT PROJECT IN DISTRICT FOUR OFF MORELL AND CEDAR CREST ADJACENT TO ROOSEVELT HIGH SCHOOL IS AN EXAMPLE OF THE DPFC PROGRAM MAKING POSSIBLE GRADUAL IMPROVEMENT WITHIN LEADING EDGE TRANSITIONAL AREAS. THE PROJECT IS LOCATED IN A CENSUS TRACK WITH 43.8% POVERTY RATE AT THE TIME OF APPLICATION. UM, AND I'M FAIRLY CONFIDENT THE FIRST NON-TAX CREDIT PROPERTY EVER BUILT IN THE DISTRICT FOUR COMMUNITY. AND LASTLY, IT SAT AS A VACANT LOT FOR 30 YEARS COLLECTING CODE VIOLATIONS AND, AND, AND DUMPS, UH, DUMPING ALONG THE WAY. WE TRIED NEARLY SIX MONTHS TO CAPITALIZE THE PROJECT WITH PRIVATE EQUITY AND CONVENTIONAL DEBT WITHOUT THE DPFC PROGRAM, BUT WE'RE CONSISTENTLY REJECTED BECAUSE NUMBER ONE, THE SOCIOECONOMIC PROFILE OF THE COMMUNITY WAS UNDESIRABLE TO THE CAPITAL MARKETS. TWO, THE RENTS WE HAD TO UNDERWRITE WITHOUT THE DPSE PROGRAM WERE DEEMED UNACCEPTABLY HIGH FOR THE SUBMARKET BECAUSE THE PROGRAM'S LOCATION IN THE TRANSITIONING COMMUNITY RESULTED IN THE PROPERTY BEING IMPROPERLY COMPED AGAINST OLDER AFFORD, UM, AFFORDABLE PRODUCT. ALTHOUGH IT IS GENERALLY ACCEPTED PRACTICE TO COMP A PROPERTY AGAINST OTHER SIMILAR VINTAGE AND SIMILAR TYPE PRODUCT, EVEN PROPERTIES IN OTHER ADJACENT SUBMARKETS POTENTIAL PARTNERS WERE NOT WILLING TO DO. SO. THIS RESULTED IN UNDERWRITING THAT DID NOT SUPPORT THE RENTS NEEDED TO RETURN AN APPROPRIATE DSCR OR IRR IN A PROJECT THAT CANNOT BE CAPITALIZED. IT WASN'T UNTIL WE WERE APPROVED FOR THE DPFC PROGRAM THAT BOTH EQUITY PARTNERS AND LENDERS WERE WILLING TO SERIOUSLY UNDERWRITE THE PROJECT. WHY? BECAUSE THE TAX EXEMPTION ALLOWED US TO UNDERWRITE MORE ACCEPTABLE MARKET RATE RENTS AND OFFER A PROJECT YIELD ACCEPTABLE TO EQUITY AND EASILY QUALIFY THE SENIOR LOAN AS A CRA CREDIT DUE TO 50% OF THE UNITS NOW BEING DEEMED AFFORDABLE. WITHOUT THE DPFC PROGRAM, THIS PROJECT WOULD NEVER HAVE A MATERIALIZED. SECONDLY, I'D LIKE TO TALK ABOUT OUR PROJECT ROLI NEAR THE UNIVERSITY HILLS, UM, AREA. IT IS A 240 USER PROJECT IN DISTRICT THREE ADJACENT TO THE UNT DALLAS CAMPUS. THIS PROJECT IS AN EXAMPLE OF THE DPFC PROGRAM MAKING POSSIBLE TRANSFORMATIVE ECONOMIC DEVELOPMENT DEEPER IN SOUTHERN DALLAS. IT IS THE MULTIFAMILY COMPONENT OF A LARGER 90 ACRE MIXED USE DEVELOPMENT LED BY RUSSELL GLEN COMPANIES. THE PROJECT WAS APPROVED BY THE DPFC IN NOVEMBER OF 2024, IS LOCATED IN THE CENSUS TRACK WITH 24% POVERTY RATE AT THE TIME OF THE APPLICATION, REQUIRES AN ADDITIONAL TIP INCENTIVE FROM THE EDC TO MAKE THE PROJECT FINANCIALLY VIABLE AND ONCE AGAIN, IT SITS ON VACANT LAND. THE DPFC PROGRAM IS AN INTEGRAL PART OF THE CAPITALIZATION OF THIS PROJECT. WE BELIEVE, UM, THAT IT, WE BELIEVE, NUMBER ONE, THE DPFC CONSIDERABLY REDUCES THE PROJECT'S RELIANCE ON EDC TO MAKE IT VIABLE. AS OF THE TIME OF THIS MEETING, WE HAVE NOT UNDERWRITTEN THE PROJECT WITHOUT THE DPFC PROGRAM. WE WOULD BE HAPPY TO DO SO, BUT WE REASONABLY BELIEVE THE ECONOMIC INCENTIVE REQUIRED WOULD BE CLOSE TO DOUBLE IT. SECONDLY, ALLOWS US TO PROVIDE MIXED INCOME AFFORDABILITY IN AN AREA GENERALLY OVERWEIGHT WITH LOW INCOME HOUSING. CURRENTLY OUR UNDERWRITTEN UNIT MIX CONSISTS OF A WIDE RANGE OF AMIS BETWEEN 50 TO 90% A MI. THIS WAS INFORMED BY A NOVO GRAD MARKET STUDY WE SECURED PRIOR TO APPLICATION THAT DEMONSTRATED A GENERALLY DEPRESSED RENTAL RATE MARKET. THE STUDY CONCLUDED THAT THE 50 TO 90% A MI LEVELS TO BE PROPER FOR THIS SUBMARKET, ANYTHING HIGHER WAS DEEMED UNREALISTIC AND UNATTAINABLE. THIS A MI MIX EQUATES TO A WEIGHTED AVERAGE PER UNIT PER MONTH RENTAL RATE OF 1378. FOR COMPARISON, OUR MORELL PROJECT IN CEDAR CREST A PROJECT THAT IS ALREADY PUSHING ECONOMIC VIABILITY AS A WEIGHTED AVERAGE PER UNIT PER MONTH RENTAL RATE OF 1565. ALTHOUGH OUR UNDERWRITTEN UNIT MIX GOES DEEPER INTO AFFORDABILITY THAN REQUIRED BY THE DPFC, OUTTA NECESSITY, THE DPFC STRUCTURE NOT ONLY AFFORDS US THE OPPORTUNITY TO MITIGATE INITIAL RENTAL AND CAPITAL MARKET RISK BY STARTING WITH A MORE APPROPRIATE RENT ROLL FOR THE SUBMARKET, BUT ALSO GIVES US [01:00:01] LATITUDE TO INCREASE RENTAL RATES UP TO DPFC LIMITS, FOR EXAMPLE, WHEN THE ENTIRE ENT MIXED USE DEVELOPMENT IS COMPLETED. THIS OPTIONALITY ESTABLISHES A TRUE BEACHHEAD OF MIXED INCOME HOUSING AS A DRIVER OF ECONOMIC REVITALATION AND EXPANSION. UM, YOU KNOW, PERSONALLY, THIS IS A LITTLE MORE PERSONAL COMMENT, BUT MY EXPERIENCE FROM THE COMMUNITIES THAT I WORK WITHIN SOUTH OF THE TRINITY, UM, GENERALLY SPEAKING THE WORD DEVELOPER, UM, REPRESENTS BROKEN PROMISES AND LOST OPPORTUNITIES. UM, WHEREAS MULTIFAMILY, UM, EPITOMIZES LOW QUALITY, POORLY MANAGED SOURCE OF CRIME, SECTION EIGHT HOUSING. UM, I'M NOT AN EXPERT ON THAT, BUT THAT'S GENERALLY WHAT I PICKED UP. THE KIND OF HOUSING THESE COMMUNITIES, WHAT I'VE PERCEIVED, UM, THEY BELIEVE THEY'VE BEEN FORCED TO SHOULDER, UM, THE MAJORITY OF OVER FOR THE YEARS. WITH THAT SAID, ALLOW ME TO ADDRESS TWO OF THE MORE RELEVANT PROPOSED CHANGES, THE LOCATION OF PROPERTIES IN THE AREA, UH, OF POVERTY, GREATER THAN 20% IN THE INCLUSION OF 50% A MI UNITS. FIRST THE QUALITATIVE. I BELIEVE THESE TWO CHANGES COULD RESULT IN CHALLENGES TO FUTURE DPFC DEVELOPMENT FROM THE CONSTITUENTS OF THE AREAS OF DALLAS. I PRESENTLY WORK IN HIGH POVERTY AREAS ARE PRESENT THROUGHOUT DALLAS, BUT A LARGER PORTION OF THOSE AREAS ARE CONCENTRATED IN SOUTHERN DALLAS BY POTENTIALLY LIMITING THE DPFC TO AREAS OF POVERTY GREATER THAN 20%. WE RISK INADVERTENTLY DRIVING MORE MULTIFAMILY PRODUCTS SOUTH WHEN COMBINED WITH THE DESIRE TO WIDEN THE A MI RANGE TO 50% AND POSSIBLY INCLUDE 30% A MI UNITS. MY FEAR WOULD BE THAT THE COMMUNITY'S PERCEPTION OF THE DPFC PROGRAM WOULD DRASTICALLY CHANGE FROM ONE OF MIXED INCOME, WHICH IS BROADLY WELCOMED BECAUSE IT IS VIEWED AS A MARKET RATE PROGRAM TO ONE OF LOW INCOME AFFORDABILITY AND THEREFORE YET ANOTHER ATTEMPT, UM, TO PLACE MORE UNWANTED MULTI-FAMILY PROJECT IN THE COMMUNITIES. IF THIS HAPPENS, I WOULD EXPECT THAT THE COMMUNITY TO ORGANIZE AGAINST THE DPFC AND SECONDLY, THE QUANTITATIVE. IN JUNE, 2024, WE EVALUATED CONVERTING 16 OR ROUGHLY 10.5% OF OUR UNITS IN OUR MORELL AVENUE PROJECT AT 50% A MI UNITS VIA A REDUCTION OF 14 MARKET RATE AND TWO 80% A MI UNITS. DOING SO WOULD RESULT IN A PROJECT OUT OF COMPLIANCE WITH OUR LENDER'S DSCR TEST TO COMPLY BY MAINTAINING A 1 35 DEBT COVERAGE RATIO REQUIRED BY OUR LENDER, THE ANNUAL RENT PAYMENT DUE TO THE DPFC WOULD NEED TO BE REDUCED FROM $250,000 TO 72,000 AND THE SALES AND USE TAX SAVINGS FEE DUE TO THE DPFC REMOVED COMPLETELY. IN SHORT, THE ADDITION OF 50% A MI UNITS TO THIS PROJECT LOCATED IN A LOW INCOME CENSUS TRACK WOULD'VE MADE THE PROJECT FINANCIALLY UNFEASIBLE TO OUR LENDER WITHOUT AN OFFSETTING REDUCTION, UM, TO THE ECONOMIC TERMS OF THE DPFC STRUCTURE OR THE DEAL ITSELF. ADDITIONALLY, WITHIN OUR ATE PROJECT FARTHER SOUTH NEAR UNT DALLAS, WE ARE CURRENTLY UNDERWRITING THE OCCLUSION OF 13 OR APPROXIMATELY 5% OF OUR TOTAL UNITS AT 50% A MI BASED ON RATE GUIDANCE PROVIDED BY NOVA GRAD. AS I PREVIOUS OUTLINED, AND AS WE PREVIOUSLY LEARNED, CAPITALIZING PROJECTS IN SOUTHERN DALLAS SUB MARKETS IS VERY DIFFICULT. UNDERWRITTEN RENTAL RATES MUST BE APPROPRIATE FOR THE PRO, UM, MUST BE APPROPRIATE FOR THE PROJECT. IS IMPOSSIBLE TO CAPITALIZE. AND SO FOR THIS PROJECT, IN A CENSUS TRACK WITH GREATER THAN 20% POVERTY IN A RENT WORLD INCLUDES SOME 50% AM I AFFORDABILITY. WE CAN SHOW THAT THE PROJECT IS NOT FEASIBLE WITHOUT ADDITIONAL ECONOMIC INCENTIVE. SO THIS, IN CONCLUSION, THIS DISCUSSION IS HEALTHY AND I GREATLY APPRECIATE CITY STAFF, PFC BOARD MEMBERS AND MEMBERS OF THE COUNCIL SEEKING TO UNDERSTAND ALL POSITIONS. I'D BE HAPPY TO DISCUSS FURTHER AND SHARE ANALYSIS, OUR FINANCIAL ANALYSIS IF NEEDED. HOWEVER, WHAT I'D LIKE TO ASK IS THAT FROM THESE CONVERSATIONS COMES LONG-TERM CERTAINTY AROUND THE DPFC PROGRAM. AS I'VE PERSONALLY EXPERIENCED DURING THE LAST STATE LEGISLATIVE SESSION, CONTINUAL DISCUSSIONS AROUND THE PFC PROGRAM HAVE GIVEN CAPITAL SOURCES PAUSE AND MADE RAISING CAPITAL MORE CHALLENGING. WE EVEN HEARD FROM A DEVELOPMENT PEER A COUPLE WEEKS AGO AT THE HHSC MEETING OF A SIMILAR, UH, REFRAINING. I AM ADVOCATING FOR NO CHANGE, BUT I UNDERSTAND THERE ARE INTRICACIES OF THIS PROGRAM AND MULTIPLE GOALS THAT WE WERE ALL TRYING TO ACCOMPLISH REGARDLESS. THANK YOU FOR YOUR TIME AND CONSIDERATION. THANK YOU VERY MUCH. UH, FURTHER COMMENTS FROM, UH, VOY FROM . THANK YOU, SAM. WELL, THIS IS A MUCH FRIENDLIER LOOKING HORSESHOE. I LIKE THE CARPET TOO. . UM, GOOD AFTERNOON DIRECTORS. I'VE STOOD IN FRONT OF YOU MANY TIMES BEFORE, BUT I MUST SAY I PREFER THIS SETTING FOR A MEAL. UM, MY NAME IS HUNT RO AND I WORK WITH AFFORDABLE HOUSING DEVELOPERS, SAVOIA EQUITY PARTNERS. UH, [01:05:01] I'M A LIFETIME RESIDENT OF DALLAS AND I TAKE A LOT OF PRIDE IN WORKING CLOSELY WITH BOTH THE BOARD AND THE CITY, UM, TO CREATE EQUITABLE HOUSING FOR THE CITY DALLAS, REGARDING THESE DISCUSSION OF THE POLICY CHANGES, I WAS A KEYNOTE SPEAKER OF THE DEVELOPER SYMPOSIUM AT SHAFER'S OFFICE. MET PERSONALLY WITH ROBIN BENTLEY, CYNTHIA, UH, AND JACKIE TO FURTHER DISCUSS AND ALSO INTENDED APRIL'S HHS MEETING. PFC WAS CREATED BY THE STATE OF TEXAS AND IS NOW REGULATED BY T-D-H-C-A. THE STATE OF TEXAS WAS VERY THOROUGH IN ITS REGULATORY LEGISLATION, MOST RECENTLY UPDATED IN 2023. THE ENCUMBRANCES BEING PROPOSED BY THESE BYLAW AND POLICY CHANGES, I CAN GUARANTEE WILL BE DETRIMENTAL AND LARGELY DERAILED THE PROGRAM. WACO, AUSTIN, SAN ANTONIO, NORTH TEXAS. NO OTHER JURISDICTION IS DOING ANYTHING QUITE LIKE THIS. AND AFFORDABLE DEVELOPERS WILL SCOPE OVER DALLAS SHOULD THESE CHANGES GET ENACTED. FOUR ITEMS SPECIFICALLY SHOULD BE REMOVED, LIMITING TO 20% POVERTY AREAS REQUIRING TIF APPROVAL, REQUIRING COMMUNITY MEETING REQUIREMENT AND REQUIRING 50% A MI UNITS WITHIN NEW CONSTRUCTION PROJECTS. UH, JUST A LITTLE BIT ON THOSE FOUR POINTS. ELIMINATING THE 20% POVERTY AREAS WE HEARD FROM CHILD POVERTY ACTION LAB THAT THIS POLICY WOULD BE CONSIDERED CONCENTRATION OF POVERTY AND AFFORDABLE UNITS. UH, IN THE C PAL STUDY, AS MENTIONED, DALLAS RANKS 11 VALLEY 12TH FOR LARGEST US CITIES IN PROVIDING AFFORDABLE UNITS WITHIN HIGH OPPORTUNITY AREAS. ONLY 17% OF OUR AFFORDABLE UNITS CURRENTLY EXIST IN SUCH NEIGHBORHOODS. AND SOME NEIGHBORHOODS HAVE HUGE DEVELOPMENT ISSUES, MAJOR OFFSITE UTILITIES, LANDFILL SITES, UH, THAT CAN ONLY BE OVERCOME WITH THE PFC NOW REQUIRING THE TIF APPROVAL, THE TIF ADDS A LOT OF UNCERTAINTY TO THE TIMELINE. IN THE PROCESS, THESE TIF BOARDS ARE IRREGULARLY SCHEDULED. UM, IT'S ABOUT IMPOSSIBLE TO NEGOTIATE WITH A LAND SELLER AS PART OF A PURCHASE AGREEMENT, HOW THIS PROCESS WILL BE HANDLED AND THE TIMING ASSOCIATED TO IT. FURTHERMORE, THE PFC IS BETTER BEING A TIFF THAN A TIFF IS AT BEING A TIFF. THE PFC WITH ALL THE NEW CONSTRUCTION INVESTED, NEW SIDEWALKS, NEW TREES, NEW UTILITIES, A LOT OF THE SAME THINGS THAT THE TIFF IS MEANT TO HELP ACCOMPLISH, UH, THE COMMUNITY REQUIREMENT. YES, COMMUNITY MEETINGS ARE GOOD PRACTICE. AND WHILE A CITY COUNCIL MEMBER MAY EVEN REQUIRE IT FROM A DEVELOPER TO GET THEIR VOTE OF APPROVAL IMPOSING, THIS IS A DISCRIMINATION OF AFFORDABLE HOUSING GIVEN THAT UNSUBSIDIZED DEVELOPMENT IS NOT REQUIRED TO DO A COMMUNITY MEETING. FINALLY, THE 50% A MI MANDATE MANDATE IS THE KEY WORD. THE BOARD CAN BOTH INCENTIVIZE DEVELOPERS LIKE AS SWED WAS SPEAKING TO EARLIER, UH, BY PROVIDING EQUAL OFFSETS TO GROUND RENT OR DO HIS OTHER JURISDICTIONS HAVE AND TAKE SOME OF THE REVENUES CREATED BY THIS PROGRAM AND SPECIFICALLY YOUR MARKET FOR DIFFERENT CITY PROGRAMS THAT BETTER ALIGN AND ARE BETTER SUITED TO HANDLING 50% A MI NEEDS. UH, THANK YOU SO MUCH FOR YOUR TIME. . HI BARRETT. LINDBERG. ALSO, IT'S VO I THE PLEASURE OF WORKING WITH HUNT. UH, THANK YOU ALL, UH, PFC BOARD MEMBERS FOR EVERYTHING THAT YOU DO. UM, WANTED TO SPEAK A LITTLE BIT WITH ABOUT WHAT DIRECTOR MONTGOMERY SAID AND JUST ALL THE HOUSING THAT YOU'VE CREATED IN THE CITY OF DALLAS THROUGH THE PFC PROGRAM IS VERY COMMENDABLE. UM, BUT ALSO WANTED TO TALK ABOUT THE LENGTH OF THE, OF THE, OR THE DURATION OF THE SUBSIDY THAT WE PUT IN PLACE WITH THESE PROJECTS. IT'S 60 YEARS OF AFFORDABLE HOUSING, AND THAT'S REALLY IMPORTANT TO KEEP IN CONTEXT. I THINK A LOT OF THE, THE THINGS THAT HAVE BEEN BROUGHT UP, THE BYLAW CHANGES ARE VERY IMMEDIATE, RIGHT? THEY'RE TRYING TO FIX IMMEDIATE PROBLEMS. SO THE CPA STUDY SAYS, HEY, WE HAVE, UH, A ISSUE WITH 50% A MI UNITS TODAY, BUT YOU GO OUT A FEW YEARS AND THERE'S AN ISSUE WITH 16 80% MI UNITS AND EVEN A HUNDRED PERCENT A MI UNITS. WELL, THIS IS A 60 PER 60 YEAR PROGRAM. UM, AND WE DON'T EVEN KNOW WHAT THAT ISSUE IS WHEN WE LOOK OUT 20 YEARS. WELL, I THINK IF WE ALL THINK ABOUT IT FOR JUST A MOMENT, WE HAVE A HUGE SHORTAGE OF ALL TYPES OF HOUSING IF WE GO OUT EVEN 15 OR 20 YEARS. AND SO AS WE THINK THROUGH THAT, WE DON'T NEED TO BE WORRIED ABOUT JUST TODAY'S ISSUES. WE NEED TO THINK MUCH LONGER. AND THE PFC PROGRAM FIXES THOSE ISSUES AT ALL DIFFERENT INCOME LEVELS. ALL THE HOUSING [01:10:01] THAT WE'RE CREATING IS GOOD HOUSING TO BE CREATED. UM, AS WE TALK ABOUT THE PROCESS THAT WE AS DEVELOPERS GO THROUGH TO GET THESE PROJECTS APPROVED, IT'S FOUR MEETINGS TODAY. UM, AND WE GO THROUGH BOARDS THAT ARE EITHER WITH ELECTED OFFICIALS OR WITH PEOPLE THAT HAVE BEEN APPOINTED BY ELECTED OFFICIALS. SO EVERY PROJECT THAT WE DO IS, UH, A PFC MEETING FIRST. THEN WE GO THROUGH AN HHS MEETING, THEN A CITY COUNCIL MEETING, AND THEN ANOTHER PFC MEETING. SO THAT'S FOUR BOARD MEETINGS SPREAD OVER MULTIPLE MONTHS, AND A LOT OF INFORMAL CONVERSATIONS AND FEEDBACK MIXED IN THERE. UH, ALMOST ALL THE FEEDBACK YOU'RE HEARING FROM DEVELOPERS IS WE DON'T WANT MANDATES. IF YOU PUT STRICT MANDATES IN THESE PROGRAMS, YOU'RE GONNA KILL A LOT OF GOOD PROJECTS. THE REASON WE DON'T WANT MANDATES IS BECAUSE THERE ARE A LOT OF SMART PEOPLE IN THESE FOUR MEETINGS AND IN ALL THE INFORMAL FEEDBACK THAT WE GET WHO CAN SAY, HEY, THIS MAKES SENSE IN THIS AREA, OR THIS DOESN'T MAKE SENSE IN THIS AREA, AND OUR PROJECT WILL DIE IF WE'RE TRYING TO DO SOMETHING DUMB. UH, TRUST ME AS SOMEONE WHO'S HAD PROJECTS DIE BECAUSE WE WERE TRYING TO DO, DO SOMETHING THAT DIDN'T FIT, UH, I THINK EVERY BOARD MEMBER HERE WHO'S LOOKING AT ME HAS KILLED ONE OF MY PROJECTS. UM, AND SO I JUST WANNA PUT THAT OUT THERE, THAT THE MANDATES, UM, DON'T MAKE SENSE. WHAT MAKES SENSE IS HAVING SMART PEOPLE ON THE BOARDS AND KEEPING THE PROCESS IN PLACE TO MAKE SURE THAT DALLAS CONTINUES TO GET GOOD HOUSING DONE BECAUSE DALLAS NEEDS GOOD HOUSING. UM, AND SO NOW I WANTED TO TALK A LITTLE BIT SPECIFICALLY ABOUT THE 50% A MI UNITS. I THINK 50% A MI UNITS ARE A GOOD THING THAT CAN BE DONE, BUT, UH, WE AS DEVELOPERS ARE COMING TO THE PFC BOARD TO GET, UH, A SUBSIDY THAT'S NEEDED. OUR PROJECTS THAT WE'VE DONE SO FAR WOULD NOT HAPPEN, BUT FOR THE PFC BOARD, UM, AND SO WHAT THAT MEANS IS THAT THE APPROVAL, THE SUBSIDY THAT WE'RE GETTING ALLOWS US OUR PROJECTS TO HAVE A YIELD ON COST THAT ALLOWS US TO GO RAISE DEBT AND EQUITY, AND WE WOULD NOT BE ABLE TO RAISE THAT DEBT AND EQUITY, BUT FOR THE PFC APPROVAL. AND SO IF THERE'S, UH, A 50% A MI UNIT INSTEAD OF A 60 OR 80% A MI UNIT OR A MARKET RATE UNIT, WELL THAT LOWERS OUR YIELD ON COST. AND SO SWED JUST DISCUSSED THIS, WHERE WHEN HE SWITCHED OUT A 50% A MI UNIT FOR A, I THINK 80% A MI UNIT, IT LOWERED HIS YIELD ON COST THAT HURT HIS DSCR THAT HURT THAT TRIP TO LENDER COVENANT, OR MAYBE IT CAUSED HIM NOT BE TO BE ABLE TO RAISE EQUITY. AND SO THAT IS WHERE THERE HAS TO BE HORSE TRADING. UH, WE EITHER HAVE TO LOWER OUR GROUND RENT OR CHANGE THE SALES TAX THAT WE'RE ABLE TO SHARE WITH THE PFC BOARD. AND SO THE LAST PAGE IN YOUR PACKET TODAY WAS AN ANALYSIS THAT WE DID SAYING, IF YOU GIVE UP 60% MI UNITS AND TRADE THEM FOR 50%, OR IF YOU GIVE UP 80% MI UNITS AND CHANGE IT FOR 50%, HERE'S HOW MUCH GROUND RENT THAT COSTS THE PFC BOARD. WELL, THAT GROUND RENT IS VALUABLE TO THE PFC BOARD BECAUSE LATER ON THEY CAN USE THAT REVENUE IN ANOTHER WAY TO CREATE 50% OR 30% OF I UNITS. THE REASON I'M SAYING THIS IS FOR DISCUSSION FOR YOU INTERNALLY, UH, WE ARE CERTAINLY WILLING TO PUT 50% A MI UNITS IN OUR DEVELOPMENTS, BUT IT CAN'T BE AT THE, AT THE EXPENSE OF OUR YIELD ON COST BECAUSE THEN WE CAN'T BUILD ANYTHING AT ALL. AND WE BELIEVE THAT HOUSING IS GOOD AND, AND THINK THAT YOU DO TOO. SO THANK YOU SO MUCH FOR, FOR THIS TIME, FOR ALL OF US, AND, UM, APPRECIATE THE OPPORTUNITY TO SPEAK TODAY. THANK YOU VERY MUCH. AND NOW WE'LL, WE'LL MOVE ON TO, UH, COMMENTS, UH, FROM THE HOUSING STAFF. AND I'D LIKE TO SAY HOW MUCH I REALLY DO APPRECIATE THE OPPORTUNITY AND Y'ALL BEING HERE TO SHARE YOUR TIME AND TO SHARE YOUR EVERY DAY OF THE WEEK, SHARING, UH, SHARING YOUR HOURS, UH, SHARING YOUR EXPERTISE, YOUR PROFESSIONALISM. I JUST WANT TO THANK Y'ALL, UH, VERY MUCH. UH, THANK YOU MS. BENTLEY. THANK YOU, UH, CYNTHIA. WE APPRECIATE EVERYTHING THAT Y'ALL ARE DOING. AND I KNOW THAT THERE ARE TIMES WHENEVER , YOU KNOW, WE MIGHT SOUND LIKE WE DON'T AGREE, BUT, UH, I THINK WITH THIS COLLABORATION AND CONNECTION AND COMMUNICATION, I THINK WE CAN FIND A LOT OF WAYS THAT WE CAN SERIOUSLY WORK TOGETHER FOR THE, OUR ULTIMATE GOAL [01:15:01] OF MORE AFFORDABLE HOUSING IN DALLAS. SO NOW, PROBLEM, UM, LET'S SEE. WE HAVE A OH, THANK YOU. I'M JUST GONNA TALK REALLY LOUD. . OKAY, WELL, HI EVERYBODY. I'M ROBIN . NO, . WAIT, HOW ABOUT NOW? THERE WE GO. OKAY, FOR THOSE OF YOU HAVEN'T MET, I'M ROBIN BENTLEY WITH THE CITY MANAGER'S OFFICE. I THINK I HAVE MET ACTUALLY ALMOST EVERYBODY IN THE ROOM. AND IT'S ALWAYS A PLEASURE TO BE IN A ROOM WITH PEOPLE WHO KNOW AND LOVE AND CARE ABOUT THE THINGS THAT MY TEAM CARES ABOUT, WHICH IS HOW WE GROW THE CITY IN A WAY THAT'S THOUGHTFUL AND INCLUSIVE. AND INCLUSIVE, AFFORDABLE HOUSING, WHICH IS WHAT THESE FINE FOLKS ARE EXPERTS IN AND CARE ABOUT. I WAS LISTENING TO ALL THE SPEAKERS DRIVING IN ON WEBEX, AND I HEARD SOME CONCERNS THAT MAYBE OUR WORK TODAY HAS NOT BEEN PRODUCTIVE, BEEN ON THE SAME TEAM. AND I JUST WANTED TO SAY, I HOPE TODAY IS DIFFERENT. WE ARE ALL ON THE SAME TEAM. WE ARE ALL TRYING TO ACCOMPLISH THE SAME OUTCOME, WHICH IS HIGH QUALITY, AFFORDABLE HOUSING ACROSS THE CITY. AND SO WE ARE HERE TO LISTEN. MY TEAM KNOWS FROM THE PROPOSALS THAT WERE MADE A COMMITTEE TO WHERE WE END UP, THERE'S A WORLD OF ROOM FOR COMPROMISE. AND SO WE ARE HERE TO LISTEN TO TAKE NOTES, AND WE'LL BE COMING BACK WITH HOPEFULLY SOMETHING WE'RE ALL VERY HAPPY WITH. THAT'S IT. LAUREN. CYNTHIA, DID Y'ALL WANNA SAY ANYTHING? I, I JUST WANNA SAY THANK YOU, UH, TO THE BOARD FOR ALL THAT YOU DO AND TO ALL THE PARTNERS IN THE ROOM, . UM, I ALSO WANNA SAY THAT IT HAS BEEN A GOOD EXPERIENCE GOING THROUGH THIS WITH MULTIPLE GROUPS THAT WE HAVE MET WITH EVEN PUBLICLY. AND WE HAVE HAD VERY PUBLIC DISCUSSIONS ABOUT THIS PROCESS, AND WE WE'RE, WE'RE HERE TO LISTEN AND WE'RE HERE TO, AS ROBIN SAID, THINK OF WAYS THAT WE CAN COMPROMISE THE POLICIES THAT WE HAVE TO PUT IN PLACE FOR COUNCILS PER COUNCIL'S REQUEST. AND, UH, AND WE HOPE THAT WE CAN GET TO A REAL COMFORTABLE LEVEL FOR EVERYBODY. AND SO, AGAIN, THANK YOU FOR, FOR ALLOWING US TO BE HERE TO LISTEN. THANK YOU VERY MUCH. DO, YEAH. I JUST SAY THANK YOU ALL. UM, WE, WE DON'T DO OUR WORK WITHOUT HEARING DIFFERENT PERSPECTIVES IN LIFE, RIGHT? WE ALL HAVE A, A DIFFERENT EXPERTISE, A DIFFERENT LEARN LIFE EXPERIENCE, AND WE HAVE TO HAVE TO SHARE THOSE STORIES SO THAT WE CAN MOVE FORWARD AS A CITY. AND SO, HEARING EVERYTHING TODAY, HEARING THE THINGS FROM THE PAST, YOU KNOW, MONTHS IS VERY HELPFUL WHEN WE CRAFT POLICY FOR THE CITY OR WHEN WE CRAFT POLICY THAT WE, YOU KNOW, PRESENT IN FRONT OF BOARDS AND THE CITY COUNCIL FOR THEIR ADOPTION. IT'S VERY IMPORTANT TO HAVE A, HAVE THAT UNDERSTANDING. IT'S VERY IMPORTANT FOR US TO UNDERSTAND THE HISTORY TOO OF DALLAS AND SOME OF THE THINGS THAT, YOU KNOW, WE'RE STILL HAVING TO CORRECT FOR AND THE, THE GOALS OF THE FUTURE SO THAT WE CAN HAVE AN INCLUSIVE, UH, CITY AND ACHIEVE ALL OF THE THINGS THAT WE HAVE TO ACHIEVE TO SERVE THE PEOPLE THAT NEED OUR ASSISTANCE THE MOST, RIGHT? AND SO WE CONTINUE OUR CONVERSATIONS. I HOPE THAT WE CAN KEEP THOSE PEOPLE IN MIND AND KEEP OUR HISTORIES IN MIND AND KEEP OUR FUTURE VISIONS IN MIND SO THAT WE CAN COME TOGETHER ON SOME POLICIES. THANK YOU. THANK YOU VERY MUCH. NOW WE'LL MOVE ON TO COMMENTS FROM THE CITY ATTORNEY'S OFFICE. NO PROBLEM. NO COMMENTS. OKAY. WELL, THANK, THANK YOU VERY MUCH FOR BEING HERE AND GREATLY APPRECIATE EVERYTHING THAT, UH, YOUR OFFICE IS DOING FOR THE CITY. THANK YOU VERY MUCH. UH, COMMENTS FROM THE DHFC, UH, AARON . YEAH. UM, I PROBABLY HAVE MICROPHONES. I'M NOT VERY LOUD HERE. THERE YOU ALL RIGHT, HERE WE GO. ALRIGHT, THANKS EVERYONE. THANK YOU, UH, PRESIDENT FOR GIVING THE OPPORTUNITY AND FOR INVITING US HERE. IT'S, IT IS BEEN A GREAT AND REALLY, UM, INTERESTING LAST SIX OR EIGHT MONTHS, WHEREAS WE'VE GONE THROUGH ALL THESE MEETINGS. I REALLY APPRECIATE 'EM. UM, YOU KNOW, I, I CONTINUE TO LEARN A LOT AND I CONTINUE TO, UM, SEE THE DEDICATION OF OUR BOARDS, BOTH THE PFC AND THE HFC. UM, YOU KNOW, I'VE, I'VE SEEN THIS IN MY OWN LIFE HERE. MY FAMILY'S FROM CALIFORNIA, FROM THE BAY AREA, AND MORE OR LESS THEY MOVED OUTTA THAT BECAUSE OF HOUSING CRISES. UM, MY PARENTS DIDN'T, THEY WEREN'T PROFESSIONALS, DIDN'T HAVE VERY GOOD JOBS. THEY DIDN'T MAKE A LOT OF MONEY, SO IT WAS JUST EASIER TO LIVE SOMEWHERE ELSE. AND SO, I, I FEAR THAT DALLAS COULD BECOME THAT IF WE DON'T CONTINUE TO DO OUR JOBS WELL, RIGHT? AND SO, UM, SEEING EVERYONE HERE AND, YOU KNOW, PERSONALLY, I'M JUST HERE FOR THE MONEY, RIGHT? , I'M KIDDING. I, I APPRECIATE EACH ONE OF THESE BOARD MEMBERS BECAUSE YOU GUYS DON'T GET PAID FOR THIS AND YOU SPEND COUNTLESS HOURS DOING IT. AND, AND RESEARCHING THESE PROGRAMS THAT HONESTLY TAKE A LOT OF TIME TO UNDERSTAND NOT ONLY, YOU KNOW, WHAT THE PROGRAM STATEMENTS SAY, BUT [01:20:01] AS THE DEVELOPERS SAY, HOW TO FINANCE 'EM AND HOW TO CONVINCE PEOPLE TO INVEST IN YOUR PROJECTS, WHEN YOU SAY, HEY, YOU WANT TO INVEST IN THE PFC DEAL, THEY SAY, WHAT'S A PFC? SO THAT'S A WHOLE OTHER, YOU KNOW, JOB TRYING TO UNDERSTAND HOW TO HAVE A CONVERSATION. AND SO IT, IT'S VERY DIFFICULT SOMETIMES. AND SO, YOU KNOW, WHAT I REALLY WANNA SAY IS, WHAT'S OUR GOAL HERE? WHY ARE WE IN THIS ROOM? RIGHT? AND, AND ROBIN HIT IT ON MY HEAD. WE'RE, WE'RE NOT HERE TO, YOU KNOW, COMPROMISE TWO OPPOSING TEAMS. WE'RE ON THE SAME TEAM. OUR GOAL IS TO PROVIDE A BETTER WAY TO FIND, YOU KNOW, THE, THE BEST USE OF THESE PROGRAMS TO CREATE MORE HOUSING AND TO SOLVE THIS CRISIS. SO THERE'S NOT, YOU KNOW, THERE'S NOT A WINNER AND A LOSER, RIGHT? WE DON'T, WE DON'T WANT TO BE, RIGHT. WE WANT TO GET IT RIGHT. AND SO THAT'S WHY I APPRECIATE EVERYONE COMING HERE AND, AND, YOU KNOW, PROVIDING THEIR VIEWPOINTS BECAUSE EVERYONE'S GOT SOMETHING THAT THEY'RE SERVING. AND ALL OF THESE CONTRIBUTE TO WHAT THE REAL ANSWER'S GONNA BE. AND SO WHEN I SEE, YOU KNOW, IT COSTS THE NO FOR 140 K VERSUS $3,000 FOR, FOR SOME OF THESE, IT'S LIKE, WHERE CAN WE FIND THESE EFFICIENCIES AND, AND MAKE OUR PROGRAMS WORK BETTER, RIGHT? UM, OBVIOUSLY THERE'S DIFFERENT LIMITATIONS AND THERE'S, THERE'S DIFFERENT, I GUESS, PROGRAM RULES THAT, THAT LIMIT THE CAPABILITIES. AND SO MY, MY COMMENT IS, YOU KNOW, MAYBE LET'S NOT FOCUS ON LIMITING THE CAPABILITIES OF WHAT THE PFC AND THE AGENCY DO. THEY, THEY DO SOME THINGS VERY WELL, AND OBVIOUSLY THEY, THEY'VE DONE IT TO THE POINT WHERE THEY'VE BECOME VERY SUCCESSFUL AND DONE IT. YOU KNOW, LIKE YOU SAID, 73% OF THE HOUSING STOCK LAST YEAR WAS, WAS ACCORDING TO ATTRIBUTED TO THESE PROGRAMS. SO LET'S NOT LIMIT WHAT THEY'RE DOING, LET'S EXPAND THAT. BUT, UM, LET'S EXPAND THEIR CAPABILITIES. YOU KNOW, MAYBE THEY'RE NOT GEARED TOWARDS 50%, BUT MAYBE LET'S USE THESE REVENUES. LET'S SEE HOW WE CAN EXPAND THAT. LET'S BE CREATIVE AND FIND THESE SOLUTIONS TO, TO WORK THAT OUT. BECAUSE I THINK, YOU KNOW, EVERYONE HERE, MUCH SMARTER PEOPLE THAN I AM, MUCH MORE EXPERIENCED. BUT I KNOW WE CAN FIND A, A WAY TO, TO GET THERE, RIGHT? BECAUSE THAT, THAT'S ALWAYS GONNA BE A NEED. BUT WE JUST NEED TO BE CREATIVE. BUT, BUT AT THE SAME TIME, LET'S NOT LIMIT WHAT'S ALREADY WORKING WELL AND LET'S, LET'S LEAVE THAT ALONE AND LET'S ADD TO OUR, OUR CAPABILITIES HERE AND, AND GET THAT GOAL THERE. SO THANK YOU. THANK YOU VERY MUCH. AND, UH, WE'LL MOVE THE COMMENTS FROM, UH, TRE, UH, KATIE O'BRIEN AND MICHAEL MICHAEL WILLIAMS, TREC REAL ESTATE. I DIDN'T EVEN REALIZE THAT. WE DON'T HAVE ANY FORMAL COMMENTS TODAY. WE'RE GRATEFUL TO BE HERE. LISTEN, WE'VE SUBMITTED, UM, TWO LETTERS WITH RECOMMENDATIONS TO THE CITY AND, AND TO THE BOARDS, AND ARE GRATEFUL FOR THE OPPORTUNITY TO, UH, TO BE IN THE ROOM TODAY AND TO PARTICIPATE IN THE, UM, FINDING OF SOLUTIONS MOVING FORWARD. THANK YOU VERY MUCH. COMMENTS FROM TAP, UH, NICK WAL, I DON'T KNOW IF I NEED IT. YOU'RE GOOD? YEAH. OKAY. UH, GOOD AFTERNOON. I DON'T HAVE PREPARED REMARKS 'CAUSE I WAS JUST COMING FOR THE HAPPY HOUR. TAP, UH, IS THE TEXAS AFFILIATION AFFORDABLE HOUSING PROVIDERS? IT IS THE STATE'S LARGEST ADVOCACY ORGANIZATION OF INDUSTRY, INDUSTRY PROFESSIONALS INVOLVED IN AFFORDABLE HOUSING. SO DEVELOPERS, CAPITAL, YOU KNOW, PARTNERS, ARCHITECTS, YOU NAME IT. I, I'M PRIVILEGED TO SERVE ON THE BOARD OF TAP. UM, BUT MY DAY TO DAY JOB IS AS A DEVELOPER WITH THE NRP GROUP. SO I HAVE THE PRIVILEGE, I DO THE MEMBERS OF TAP OF WORKING ALL ACROSS THE STATE OF TEXAS. AND BELIEVE IT OR NOT, THE CITY OF DALLAS IS NOT THE ONLY CITY THAT'S DECIDED TO CREATE AN HFC AND A PFC. AND SO FOR ME, WORKING WITH DOZENS OF ENTITIES ACROSS THE STATE, IT'S REALLY INTERESTING TO SEE WHEN, HOW EACH, EACH CITY AND EACH JURISDICTION APPROACHES THIS. AND, AND I THINK YOU HAVE SOME GREAT EXPERTS HERE. YOU KNOW, BRACEWELL HAS PROBABLY DONE MORE NEW CONSTRUCTION PUBLIC FACILITY CORPORATIONS THAN ANY OTHER LAW FIRM. YOU KNOW, HILLTOP REPRESENTS MORE HOUSING FINANCE CORPORATION IS, AND ADVISE ON MORE TRANSACTIONS THAN ANY OTHER FINANCIAL ADVISOR. SO WE HAVE THIS ROBUST EXPERIENCE. THERE IS NO NEED TO REINVENT THE WHEEL. THIS IS NOT THE FIRST TIME THAT THE PFC HAS BEEN USED SUCCESSFULLY OR THE HFC HAS BEEN USED SUCCESSFULLY. SO WE CAN LEARN FROM THESE LESSONS. I THINK, YOU KNOW, KEN, YOU BROUGHT UP SAN ANTONIO. I MEAN, I, WE WERE INSTRUMENTAL IN THE PASSAGE OF THAT BOND AND THAT BOND HOUSING BOND HAS CREATED THOUSANDS AND THOUSANDS AND THOUSANDS OF UNITS, SPECIFICALLY TARGETED 30% A MI. BUT HOW DO WE DO THAT? IT'S BY INCENTIVIZING. IT'S ABOUT ENCOURAGING, INCENTIVIZING, PUTTING RESOURCES BEHIND THAT. IT'S NOT ABOUT DRAWING THICK, RED, DARK LINES REQUIREMENTS DO NOT PASS, GO. THAT'S WHEN WE LOSE HOUSING, THAT'S WHEN WE GET LESS UNITS AND WHEN WE BUILD LESS UNITS [01:25:01] OR WE DON'T BUILD THAT NEXT PROJECT BECAUSE IT DOESN'T HAVE EVERYTHING WE WANT, IT JUST CREATES FURTHER PRESSURE AT THOSE, AT THE BOTTOM OF THE INCOME TOTAL TOTEM POLE. SO IT'S SOMETHING THAT'S JUST, I'VE SEEN IT TIME AND TIME AGAIN, WE'VE HAD THESE SAME CONVERSATIONS IN SIMILAR ROOMS, NOT WITH AS GOOD AS VIEWS, BUT WE'VE HAD THESE SAME CONVERSATIONS ALL ACROSS THE STATE. AND FRANKLY, WE'VE HAD 'EM HAD THEM IN THE LEGISLATURE. AND THAT'S SOMETHING I WANT TO TALK ABOUT BRIEFLY, IS THAT WE HAVE THIS STATE PROGRAM, AND I CANNOT TELL YOU THE HOURS WE HAVE SPENT FIGHTING IN THE CAPITOL TO CREATE, TO PROTECT AND TO PRESERVE THESE PROGRAMS. THE PFC THAT WAS REALLY, REALLY CHALLENGING LAST SESSION, REALLY CHALLENGING. I CANNOT EVEN BEGIN TO TELL YOU HOW MUCH TIME I WASTED IN THAT UGLY PINK BUILDING . UM, YOU KNOW, BUT WHAT WE GOT WAS, WAS GUARDRAILS. WE GOT A PROGRAM THAT WAS PUT INTO PLACE THAT HAD REQUIREMENTS AND THAT WAS INTENSE NEGOTIATION IN ORDER TO GET A PROGRAM THAT WORKS AND MAKES SENSE. UH, SAME WITH HFC AND I, AND I'M FLYING DOWN TO AUSTIN'S NIGHT. THERE'S A BILL ON THE FLOOR THIS EVENING THAT'S GONNA BE VOTED OUT OF THE HOUSE. AND SO WE'VE BEEN FIGHTING, AND BRAXTON'S BEEN PART ABOUT A PART OF THAT, ABOUT THE HFC AS WELL. AND SO THESE GUARDRAILS EXIST AND THERE WAS LEGISLATIVE INTENT BEHIND THESE PROGRAMS. AND SO WE NEED TO BE VERY CAREFUL THAT WHAT WE DO HERE DOESN'T CONFLICT WITH THE STATE, YOU KNOW, REQUIREMENTS. AND, AND MORE IMPORTANTLY, AS YOU KNOW, I KNOW THIS IS A PS MEETING, PFC MEETING, BUT WITH THE HFC THAT WE'RE NOT MIXED UP WITH THE FEDERAL REQUIREMENTS, RIGHT? SO, YOU KNOW, THESE, THESE LOCATION REQUIREMENTS, UM, ABOUT WHERE WE SHOULD OR SHOULD NOT BUILD PROJECTS. THE FEDERAL GOVERNMENT DESIGNATES QUALIFIED CENSUS TRACKS BY DEFINITION, WHERE THEY WANT TO SEE LIVE TECH DEVELOPMENT IS WHERE THERE IS 25% POVERTY MORE. THAT IS WHERE THEY INCENTIVIZE US TO BUILD. THAT IS WHERE AS A LITECH DEVELOPER, THE, THE FEDERAL GOVERNMENT SAYS, PLEASE BUILD HERE. BUT SO NOW THAT'S THE, THAT'S THE WASHINGTON DC AND NOW HERE WE ARE SAYING, NO, YOU CAN'T BUILD THERE, SO WE'RE GONNA HAVE CONFLICTS. UM, AND NOW BOTH OF THESE PROGRAMS ARE SUBJECT AND, AND ESPECIALLY THE PFC ARE SUBJECT TO AUDITS WITH THE TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS. SO THERE'S AN ANNUAL REPORTING REQUIREMENT, ANNUAL AUDIT AND COMPLIANCE REQUIREMENT. AND SO WHATEVER WE'RE GONNA DO HERE, LET'S NOT MIX IT UP WITH WHAT'S ALREADY BEING REQUIRED BY THE STATE OR BY THE FEDERAL GOVERNMENT. UM, WE NEED TO BE REMOVING BARRIERS, NOT CREATING MORE BARRIERS. AND SO, AND THIS IS NOT UNIQUE TO DALLAS, BUT THIS IS UNIQUE. THIS IS ALL ACROSS THE STATE. BUT WHEREVER THERE'S BARRIERS, AND THAT DOESN'T JUST MEAN THE POLICIES OF THIS BOARD, BUT THAT MEANS ZONING, THAT MEANS, YOU KNOW, YOU NAME IT, ANY OF THESE BARRIERS THAT WE BUILD UP, THAT WE BUILD, ESPECIALLY ARTIFICIAL BARRIERS AT THE LOCAL LEVEL WILL JUST MAKE IT HARDER. IT IS ALREADY HARD ENOUGH TO BUILD HOUSING. WE DO NOT NEED MORE BARRIERS. THE CAPITAL MARKETS ARE ALREADY CHALLENGING ENOUGH TO MAKE THIS WORK TO UNDERWRITE, TO PENCIL THESE PROJECTS. SO IF WE ADD MORE, IF WE ADD MORE BARRIERS, MORE ROADBLOCKS, MORE ROAD BUMPS, WHATEVER YOU WANT TO CALL IT, THAT MEANS THE DEVELOPERS IN THIS ROOM ARE GONNA LOOK ELSEWHERE. THAT MEANS THAT LESS PROJECTS ARE GONNA HAPPEN, LESS UNITS ARE GONNA BE DELIVERED. I THINK SOMEONE SAID IT EARLIER, MAYBE THE C POWELL, I'M SORRY, BUT WAS THIS DALLAS IS ONE OF THE LARGEST METROS IS THE BOTTOM FIRM LITECH PRODUCTION. I MEAN, THAT'S, THAT IS NOT GOOD AT ALL. I MEAN, THAT IS REALLY, REALLY BAD. AND CONTRASTING IT TO A SAN ANTONIO, LIKE YOU MENTIONED, YOU HAVE ENTITIES READY, HAVE CITY COUNCIL READY TO APPROVE LITECH WHEREVER IT MAY BECOME. UM, WHEN IT COMES TO THE CAPITAL MARKETS, I THINK THERE ARE, I THINK WE COME INTO THIS ROOM AND YOU'RE HEARING FROM DEVELOPERS, RIGHT? YOU'VE HEARD FROM, YOU KNOW, THE US WHITE GUY IS WEARING, YOU KNOW, BLUE PANTS IN THE BLAZER. AND IT'S, IT IS HARD TO FORGET THAT. LIKE, WE ARE NOT, IT IS NOT ABOUT WHAT WE WANT TO DO OR NOT WANT TO DO. IT'S NOT THAT, YOU KNOW, SEVO DOESN'T WANT TO BUILD 50% A I UNITS OR THEY DON'T WANT TO DO THIS. IT'S NOT UP TO US. IT'S NOT OUR MONEY. I'M NOT WRITING, I DON'T HAVE $60 MILLION THAT I'M, YOU KNOW, RUNNING A CONSTRUCTION MODEL. I DON'T HAVE 20 MILLION, I DON'T HAVE $8 MILLION, FIRST OF ALL, . UH, BUT I HAVE $20 MILLION THAT I'M, YOU KNOW, PUTTING THE EQUITY IN. IT'S, WE ARE SUBJECT TO THE POWERS THAT BE THE BANKS OF AMERICA AND THE JP MORTGAGE CHASE, AND YOU NAME IT. AND THEY NEED TO GET RISK ADJUSTED RETURN FOR THEIR INVESTED CAPITAL. AND IF, IF THEY CAN'T GET THAT, THEY'RE GONNA GO TO THE NEXT BEST THING. AND IT'S NOT GONNA BE AFFORDABLE HOUSING, RIGHT? OR WILL BE IN THE SUBURBS, OR WILL BE IN THE SUBURBS. AND, AND I, AND I HATE TO SAY IT, THE LAST THREE LOW INCOME HOUSING TAX CREDIT DEVELOPMENTS THAT I'VE DONE IN NORTH TEXAS, MESQUITE, MCKINNEY, [01:30:01] DENTON, I HAVEN'T. I JUST, I'M NOT LOOKING AT DALLAS. I'M SORRY, I, I HAVE NO INCENTIVE TO DO SO. IT'S JUST TOO CHALLENGING. THERE'S TOO MANY HOOPS TO JUMP THROUGH. IF YOU'RE GONNA MAKE US JUMP THROUGH HOOPS, I'M GONNA GO RIGHT NEXT DOOR AND DO IT INSTEAD. SO I'LL JUST WRAP UP. UM, YOU KNOW, IT'S, IT'S NOT UP TO US. WE DON'T MAKE THAT DECISION. AND THE IMPORTANT THING SPECIFICALLY ABOUT THE PFC, AND I CAN'T EMPHASIZE THIS ENOUGH, THE PFC IS FULLY CONVENTIONALLY FINANCE PRIVATE CAPITAL. THE CITY OF DALLAS DOES NOT PUT A PENNY INTO THE CAPITAL STACK ON THESE DEALS. YES, THERE IS THE TAX EXEMPTION, I DON'T KNOW WHAT A TAX, WHAT THAT IS WORTH ON LAND. THAT WAS, WHO MENTIONED WAS VACANT FOR 30 YEARS, AND I DON'T KNOW WHAT THE TAX BILL WAS, MAYBE HAD AN AG EXEMPTION. I'VE SEEN LAND WHERE IT'S LIKE $300 OF THE LAST 10 YEARS HAS GONE TO THE CITY OF DALLAS. SO NOW YOU HAVE UNITS, YOU HAVE THAT ABILITY, YOU KNOW, IT'S JUST A, NOT A PENNY GOES INTO THIS. AND, AND THAT'S THE SAME FOR THE STATE. THE STATE DOES NOT INVEST DOLLARS IN AFFORDABLE HOUSING. STATE DOES NOT INVEST IN ANY DOLLARS UNLIKE ALL THESE OTHER STATES THAT HAVE FUNDS. RED STATES, BLUE STATES, YOU NAME IT. SO I, I JUST THINK IT'S SO IMPORTANT. WE HAVE NO TOOLS IN THE STATE COMPARED TO ALL THE OTHER STATES. WE HAVE NO TOOLS. THE ONLY THING WE HAVE ARE THESE TWO PUBLIC-PRIVATE PARTNERSHIP PLUS THE HOUSING AUTHORITY. BUT DALLAS HOUSING AUTHORITY ISN'T REALLY INVOLVED IN THE SPACE. SO WE HAVE THESE HANDFUL OF PUBLIC-PRIVATE PARTNERSHIP TOOLS AND THAT'S IT. THERE'S NOT ANOTHER DOLLAR, THERE'S NOT A FUND SOMEWHERE, YOU KNOW, YOU HAVE FEDERAL FUNDS THAT TRICKLE DOWN, BUT I DON'T KNOW, DID ANYONE SEE THE PROPOSED HUD BUDGET? I MEAN, IT, I DON'T KNOW WHAT'S GONNA HAPPEN WITH ANY OF THAT. SO I'LL CONCLUDE. UM, THAT WAS A LOT. I, I WAS, I WAS GOING TO END UP GIVING A DISSERTATION. UM, I'LL JUST CONCLUDE BY SAYING THAT WE DON'T NEED TO REINVENT THE WHEEL. THESE PROGRAMS WORK ALL ACROSS THE STATE. WE NEED TO BE WORKING TOGETHER TO REMOVE BARRIERS AND, YOU KNOW, TAP IN ALL THESE ORGANIZATIONS. EVERYONE IN THIS ROOM STAND BEHIND WORKING TOGETHER TO MAKE THAT HAPPEN. SO THANK YOU VERY MUCH, PLEASE. HAPPY. THANK YOU VERY MUCH, . AND I'D LIKE TO CONTINUE, UH, WITH, UH, PUBLIC TESTIMONY AND OPEN IT UP TO, UH, ANYONE IN THE ROOM. I, I DID SEE THAT, UH, UH, BRIAN, TONY FROM THE DALLAS HOUSING COALITION, UH, CAME IN. UH, BRIAN, IF I CAN SAY ANYTHING? YES, IF YOU DON'T MIND. HI EVERYONE. UH, MY NAME IS BRIAN TONY, I'M THE EXECUTIVE DIRECTOR OF THE DOBBS HOUSING COALITION. I'VE SPOKE IN SUPPORT OF BOTH HFC AND PFC PROGRAMS, UH, EARLIER AT HHS IN APRIL. I WANT TO GO ON THE RECORD AND SAY THE DOS HOUSING COALITION DOES NOT SUPPORT CONCENTRATING POVERTY. WE DO WANT TO MAKE SURE THAT THESE PROGRAMS ARE RIGHT PRICE FOR OUR FOLKS AND RESIDENTS WHO NEED IT. AND WE SEE THAT THROUGH AN EFFECT ON SUPPLY. AND INCREASING OUR SUPPLY IS THE BEST WAY THAT WE CAN DECREASE HOUSING COSTS. THE RESEARCH IS PRETTY SOUND, UH, AT THIS POINT. UH, STUDIES FROM UCLA, UH, THE PEW CHARITABLE TRUST, UPJOHN, EVEN IN LOW INCOME AREAS WHERE WE ADD SUPPLY, THERE ARE RENTS OF FIVE TO 7% DECREASES IN THOSE LOW MARKET AREAS AND IN THOSE NEIGHBORHOODS. SO I KNOW THAT THESE REPORTS THAT ARE CHANGING EVERY YEAR, UH, WE HAVE A GREATER AND GREATER NEED AT THAT LOWER INCOME LEVEL. WE TOOK OUR BIG SWING WITH A $200 MILLION HOUSING BOND. UNFORTUNATELY, WE DIDN'T GET THERE, BUT THAT'S SOMETHING THAT WE NEED TO LOOK AT. I THINK AGAIN, UH, POTENTIALLY EVEN A STANDALONE BOND IN THE NEXT FEW YEARS FOR HOUSING, UH, BEFORE WE GET TO THE NEXT CITY BOND, UH, PROGRAM. SO THAT'S SOMETHING I WOULD ENCOURAGE US TO LOOK AT AND KEEP IN MIND, UH, MOVING FORWARD, BECAUSE NUMBER TWO, THESE HFC AND PSC PROGRAMS ARE ESSENTIALLY WORKFORCE HOUSING PROGRAMS BEST UTILIZED FOR AT 60%, 80%, UH, A MI LEVELS. AND SO IF THERE'S A WAY WE CAN USE SOME OF OUR EXISTING BOND DOLLARS, UH, WE HAD OUR FIRST PROJECT IN THE WEST END, I BELIEVE, USED SOME 2024 BOND FUNDING. IT'S A HUNDRED FOUR FIFTY FOUR UNITS, 41%, 63 OF THEM ARE INCOME RESTRICTED, SOME OF THEM ARE 30% AND BELOW A MI. HOW CAN WE TAKE THE PROPERTY TAX GENERATED BY THAT DEVELOPMENT IN THE NEXT FEW YEARS AND EXTEND THOSE DOLLARS INTO MORE DEALS THAT BENEFIT 50% BELOW A MI IS SOMETHING I'D LIKE TO SEE HAPPEN. UM, MY POINT NUMBER THREE, I WANTED TO MAKE, UM, DHP 33 WE'RE EIGHT YEARS AWAY FROM THIS HOUSING POLICY WE ADOPTED TWO YEARS AGO. WE HAD A GOAL OF INCREASING OUR SUPPLY 10% ANNUALLY OVER THE, THE NEXT, UH, EVERY YEAR BY 10%, BOTH ON THE PRODUCTION AND PRESERVATION SIDE. HOPEFULLY ALL THE CHANGES THAT YOU ALL, UH, MAKE TODAY AND IN THE FUTURE, WE'LL KEEP THAT GOAL IN MIND THAT WE ESTABLISH THE CITYWIDE POLICY AS A STRATEGIC PLAN TO INCREASE OUR PRODUCTION AND PRESERVATION. AND THEN THE FOURTH POINT, UH, I WANTED TO MAKE JUST 'CAUSE I ALSO REPRESENT DORY HABITAT FOR HUMANITY WEARING THEIR HABITAT FOR A TEXAS SHIRT TODAY. THERE'S A A GREAT ARGUMENT FOR THE RENT SAVINGS IN EACH OF THESE PROJECTS THAT THEY [01:35:01] ALLOW PEOPLE TO SAVE UP FOR HOME OWNERSHIP. AND WE'RE GETTING MORE PEOPLE INTO HOME OWNERSHIP OPPORTUNITIES TOO. SO I THINK WE SHOULD KEEP THE RENT SAVINGS CALCULATIONS IN MIND FOR THESE PROJECTS AS WELL. AND THANK YOU FOR LETTING ME SPEAK TODAY, ALL YOUR WORK. THANK YOU VERY MUCH. DO WE HAVE ANY OTHER, UH, FURTHER COMMENTS FROM THE BOARD? YES. UH, MARCY. MARCY, UM, UH, I JUST WANTED TO, UH, I FEEL LIKE, UM, WE, UH, HAD A LOT OF TALKING ABOUT LOCATION AND A MI LEVELS, BUT I JUST WANNA, UM, ADD ABOUT THE REVENUE THAT THESE, FIRST OF ALL, THESE CORPORATIONS HAD NO REVENUE TO SPEAK OF, UH, IN THE VERY RECENT PAST. AND, UH, ONLY BECAUSE WE HAVE WORKED REALLY HARD TO HAVE POLICIES TO TRY TO CREATE SOME REVENUE, HAS SOME ACCUMULATED. AND, UM, AND I WANNA SAY THAT I'M HOPING THAT WE LOOK AT THAT REVENUE, ALMOST LIKE THE STATE OF TEXAS LOOKS AT ITS RAINY DAY FUND BECAUSE, UH, AND NICK ALLUDED TO THIS BRIEFLY, BUT, UH, IF YOU GO BACK NOW OVER THE PAST FEW YEARS AND HOUSING CAN, UH, MAYBE GIMME THAT FIGURE. UH, WE'VE HAD TO USE CDBG AND HOME FUNDS VERY OFTEN TO MAKE THESE PROJECTS WORK NOW. AND IF THOSE GO AWAY, WHICH THERE'S A CHANCE THAT THEY WILL, THERE WILL BE NO CDBG NO HOME. AND WE HAVE, AS BRIAN JUST SAID, NO, UH, CITY MONEY THAT'S BEEN PUT ASIDE TO GIVE THESE SUBSIDIES. I WANNA LOOK AT WHAT WE'VE ACCUMULATED AS THAT RAINY DAY FUND THAT IF WE DON'T HAVE THOSE OTHER SOURCES AND OUR DEVELOPERS NEED SUBSIDY, WHICH AS ALL THE DEVELOPERS HAVE POINTED OUT, UH, DEPENDING ON HOW LOW YOU GO FOR A MI, YOU NEED MORE AND MORE SUBSIDY DOLLARS. AND SO, UH, I THINK THAT BOTH OF THESE BOARDS, YOU KNOW, ARE COMMITTED TO USING THOSE REVENUES THAT WE HAVE NOW BEEN ABLE TO ACCUMULATE TO, TO DO THOSE SUBSIDIES. AND WE JUST, UH, APPROVED THE FIRST ONE ON ONE OF OUR DEALS RECENTLY. AND SO I'M REALLY HOPING THAT, THAT THAT'S, UH, THAT THAT'S HOW WE'LL BE ABLE TO UTILIZE THESE REVENUES THAT WE'VE ACCUMULATED, IS THAT WE CAN NOW START GIVING THOSE SUBSIDY LOANS AND THEN THEY WILL, UM, BE RENEWABLE BECAUSE WE'LL GET THEM PAID BACK EVENTUALLY AND THEN CONTINUE TO LOAN OUT. AND I THINK THAT IS JUST COULD BE A, A WONDERFUL NEW, UM, PROCESS FOR THESE TWO BOARDS. THANK YOU. ANOTHER COMMENT. COULD YOU IDENTIFY YOURSELF PLEASE FOR THE RECORD? YEAH. UH, JOHN HETZEL, UH, LISTENING TO THIS DISCUSSION, I WASN'T ORIGINALLY GONNA SAY ANYTHING, BUT I THINK I HAVE UNIQUE PERSPECTIVE ON A COUPLE OF THE, UH, TOPICS BEING DISCUSSED. UH, ONE IS TIF BOARD, UH, APPROVAL, UH, FOR THOSE THAT DON'T KNOW ME, NOT ONLY AM I-A-P-F-C DEVELOPER, UH, FOR THE BLOCKHOUSE SANTA FE PROJECT, BUT I'VE ALSO BEEN THE LONG SURVEY CHAIR OF THE DEVELOPMENT TIFF BOARD. AND I SERVE ON THE CITY OF PLANO TIF BOARD AS WELL FOR THE COL CREEK MALL REDEVELOPMENT. THE DEBELL AND TIFF, UH, HAS MULTIPLE PFC PROJECTS IN IT DONE BY LARKSBURG. AND FRANKLY, I DON'T CARE IF NOBODY ASKS ME , I I, UNLESS THEY'RE GOING FOR TIFF FUNDS, UM, YOU KNOW, GOAL IN ALL OF THESE DISTRICTS IN MY MIND AND IS TO PROVIDE MORE WORKFORCE ATTAINABLE HOUSING. AND IF IT'S APPROVED BY YOU ALL, IT'S ALREADY PASSED THE TEST THAT THE LAND GENERALLY VACANT. NOTHING WOULD HAPPEN ON IT, IF NOT FOR THE PFC PROGRAM OR THE HSC PROGRAM. AND SO THE EXTRA LAYER OF GOING THROUGH ME ON THE TEST, I DON'T CARE. I'M SURE OTHER BOARD MEMBERS FEEL DIFFERENTLY, BUT PERSONALLY I DON'T CARE. UM, I, I'D RATHER SEE THOSE THINGS HAPPEN UNLESS THEY'RE ACTUALLY ASKING FOR TIF SUBSIDY. UH, THE OTHER ON THE 50 AND 68% A MI QUESTION, I MEAN, PEOPLE HAVE TALKED ABOUT IT IN DETAIL, BUT I WILL SAY WITH THE BLOCKHOUSE SANTA FE PROJECT, I BELIEVE WE'RE THE FIRST, OR ONE OF THE FIRST THAT ACTUALLY AGREED TO DO SOME 50 AND 60% UNITS FOR PFC. WE HAVEN'T STARTED CONSTRUCTION YET, IS REALLY HARD TO MAKE THE NUMBERS WORK. AND WE AGREED TO IT ON A PRINCIPLE. WE'RE TRYING OUR BEST. I STILL THINK WE'RE GOING TO GET IT DONE, BUT THAT IS A FACTOR FOR THE FACT THAT WE HAVEN'T ACTUALLY STARTED CONSTRUCTION YET. AND SO, JUST TO REITERATE, WITHOUT GETTING INTO DETAILS ON WHAT A LOT OF PEOPLE HAVE TALKED ABOUT, UM, YOU KNOW, AT A HIGH LEVEL, I THINK WE SHOULD WANT AS MUCH ATTAINABLE WORKFORCE HOUSING AS WE CAN POSSIBLY GET, PARTICULARLY ON LAND THAT'S VACANT AND NOT GENERATING TAX REVENUE. AND, YOU KNOW, SAYING YOU CAN ONLY DO IT IN CERTAIN PLACES AND NOT OTHERS. ALL YOU'RE DOING IS STOPPING IT IN THE PLACES THE [01:40:01] OTHER PLACES. IT'S NOT DOING MORE IN THE PLACES YOU WANT IT, IT'S STOPPING IT FROM HAPPENING IN ELSEWHERE. AND GENERALLY SPEAKING, I THINK WE WANT THIS THROUGHOUT THE CITY. UM, AND SO I ENCOURAGE Y'ALL TO KEEP WITH A MISSION ON LET'S PUMP OUT THOSE ATTAINABLE WORKFORCE UNITS. THANKS Y'ALL. ALSO, UM, LOCK HOUSE, ALEX HERE. GOOD AFTERNOON EVERYBODY. MY NAME'S, UH, ALEX LOWE. JOHN HETS IS MY PARTNER OVER THERE. UH, I JUST WANT TO START BY SAYING THAT ONE OF MY MOST FAVORITE MOMENTS OF BEING IN DEVELOPERS, BEING IN A ROOM WITH KINDRED SPIRITS, WHOSE MISSION IS TO BUILD MORE ATTAINABLE AND AFFORDABLE HOUSING. JOHN AND I STARTED OUR DEVELOPMENT COMPANY THREE YEARS AGO WITH THE EXPLICIT MISSION TO BUILD MORE ATTAINABLE AND AFFORDABLE HOUSING. UM, I LIKE TO TELL MY STORIES. I'M A SECOND GENERATION AMERICAN. I'M ON OTHER SIDE. I'M THESE, UH, DEEPLY PASSIONATELY IN LOVE WITH THE AMERICAN DREAM. AND A CORE COMPONENT OF THE AMERICAN DREAM IS UPWARD ECONOMIC MOBILITY. AND WHAT I LOVE ABOUT WHAT WE'RE DOING HERE TODAY IS HOUSING IS A CORE COMPONENT OF THAT UPWARD ECONOMIC MOBILITY. BEING ABLE TO AFFORD, UH, A COMMUNITY WHERE YOU CAN GET TO KNOW YOUR NEIGHBOR. BECAUSE FOR LOW INCOME INDIVIDUALS, ONE OF THE MOST TUMULTUOUS SPEND STATISTICALLY IN THEIR LIVES IS WHEN, UH, SOMETHING HAPPENS WITH ONE OF THEIR CHILDREN. AND BEING ABLE TO BUILD MORE OF THIS ATTAINABLE AND AFFORDABLE HOUSING, THEY CAN GET TO KNOW THEIR NEIGHBORS, THEY CAN GET TO KNOW THAT THEY BELONG TO A COMMUNITY. UM, I'M A RELATIVE, NEWER DEVELOPER, UH, TO RELATIVE TO SOME OF THE OTHER FOLKS WHO HAVE SPOKEN OUT HERE TODAY, UH, DESPITE THE NUMBER OF GRAY HAIRS THAT I HAVE ON MY HEAD TODAY. BUT I CAN SAY THAT ONE OF MY FAVORITE MOMENTS IN MY SHORT HISTORY AS A DEVELOPER IS WHEN I FOUND OUT ABOUT THE PFC PROGRAM. 'CAUSE I WAS LIKE, MISSION ALIGNMENT. THIS IS EXACTLY WHAT WE WANT TO DO. HERE IS A FELLOW PARTNER WHO'S WILLING TO WORK WITH US TO GET THIS DONE. UH, I AM A WALKING, TALKING CHEERLEADER FOR THE PFC PROGRAM. UH, I CANNOT TELL YOU HOW MANY PEOPLE, BOTH IN THE DEVELOPMENT COMMUNITY, UM, COMMUNITY ADVOCATES, FRIENDS, FAMILY NEIGHBOR THAT I'VE GOTTEN ON MY SOAPBOX AND PREACHED ABOUT THE VALUES AND VIRTUES OF THE PFC PROGRAM AS IT IS TODAY. UH, WHAT I LOVE ABOUT THE PROGRAM IS ITS RELATIVE SIMPLICITY. IT FITS IN A WONDERFUL MIDDLE COMPONENT BETWEEN, UH, CONVENTIONAL MARKET DEVELOPMENT AND VERY COMPLEX, UH, AS WE TALKED ABOUT BEFORE, 4% AND 9% BIOTECH DEVELOPMENT. UH, I LOVE DIRECTOR MONTGOMERY STATISTIC FROM EARLIER THAT REALLY STOOD OUT TO ME, UH, AND, AND SPEAKS TO THE, THE TANGIBLE ABILITY OF THE PFC TO BE ABLE TO DELIVER AT OVER $3,000 UNIT. UH, AND ONE OF THE OTHER STATISTICS THAT I WANTED TO BRING TO THE TABLE IS YEAR OVER YEAR PERMITS IN THE CITY OF DALLAS, THEY'RE DOWN 60% FOR MULTIFAMILY. AND IF FOLKS WHO ARE THE, THE VAST MAJORITY OF WHICH IS MARKET RATE DEVELOPMENT, AND IF THEY AIN'T GETTING IT DONE, WE DEFINITELY AIN'T GETTING IT DONE. SO I WANTED TO ADD SOME CONTEXT WITH THAT. IT IS A, IT IS A DIFFICULT TIME TO DEVELOP. I'M GOING TO REHASH SOME THINGS THAT HAVE ALREADY BEEN SAID TODAY. INTEREST RATES ARE HIGHER THAN THEY'VE BEEN IN 10 YEARS. CONSTRUCTION COSTS ARE HIGHER THAN THEY'VE EVER BEEN. LAND PRICES IN THE CITY OF DALLAS ARE HIGHER THAN THEY'VE EVER BEEN. UM, AS I THINK BARRETT MENTIONED EARLIER, I THINK THAT WE ALREADY HAVE A REALLY WONDERFUL OVERSIGHT PROCESS WITH HOW THINGS, UH, WITH THE NUMBER OF INTELLIGENT PEOPLE THAT WE HAVE IN THIS ROOM, UH, THE GUARDS AND GUARDRAILS THAT WE HAVE IN PLACE WITH THE NUMBER OF MEETINGS THAT WE'RE REQUIRED TO HAVE AND THE PEOPLE WHO NEED TO, TO VOTE ON THE NUMBER OF PROJECTS. AND, UM, I'LL JUST FINISH THIS UP AND, AND ECHO WHAT DIRECTOR TANA SAID EARLIER, BILL BABY BUILD. UM, THIS IS OUR PATH FORWARD AND WE NEED TO BE TEARING DOWN BARRIERS NOW DIRECTING MORE BECAUSE WE ARE GONNA SOLVE THIS PROBLEM MOVE FORWARD BY PUTTING AS MANY NEW UNITS ONLINE AS POSSIBLE. AND THE WAY TO DO THAT IS TO INCREASE THE TOP OF THE FUNNEL FOR THE PIPELINE, NOT DECREASE IT. THANK YOU FOR YOUR TIME. THANK YOU VERY MUCH. ANY FURTHER COMMENTS? YES. JUST ONE I SPEAK. UH, SO I'M DAVID ELLIS. I'M ON THE DALLAS HOUSING HIGHEST CORPORATION BOARD. I'VE BEEN ON FOR FIVE YEARS. UM, YOU KNOW, I DID NOT KNOW MUCH ABOUT STATE POLITICS, UH, COMING ON. I DIDN'T KNOW WHAT DISTRICT THAT WAS IN. HONESTLY, WHEN I GOT NOMINATED BY ADAM HUG, I WAS DISTRICT 10 PLUS THAT. SO IT'S BEEN AN EDUCATION PROCESS AND LEARNING ABOUT AFFORDABLE HOUSING HAS BEEN AN EDUCATION PROCESS. AFFORDABLE HOUSING, JUST PLAYING A LONG GAME FOR CITY PLANNING, RIGHT? IT IS ABOUT SUBSIDIES AND THE PEOPLE THAT, THE PRIVATE DEVELOPERS THAT, YOU KNOW, PROVIDE AFFORDABLE HOUSING TO THIS, UH, CITY. THEY'RE NOT GONNA DO IT OUTTA THE GOODNESS OF THEIR OWN NORM. IT'S JUST NOT HOW LIFE WORKS [01:45:01] AS WELL. AND WE'RE NOT GONNA GET AFFORDABLE HOUSING WITHOUT SUBSIDIES. WHAT THE UNDERCURRENT THAT WE'VE BEEN DEALING WITH, I THINK REALLY RELATES TO WORKFORCE HOUSING AND THE EXEMPTIONS AND THE CONTROVERSY IS THAT, COME WITH IT. I GET IT, I UNDERSTAND. BUT CONTINUALLY RESTRICTING, YOU KNOW, AFFORDABLE HOUSING FOR THAT REASON, IT'S PLAYING THE SHORT GAME. AND THAT'S WHEN WE HAVE OUR O-S-H-I-T MOMENT. 'CAUSE 10 YEARS DOWN THE ROAD, WHEN WE ARE REFUSING TO GIVE THESE EXEMPTIONS BY PUTTING IN, YOU KNOW, VERY RESTRICTIVE GUIDELINES FOR OUR DEVELOPERS, THAT'S WHEN WE, YOU KNOW, FIND OURSELVES 10 YEARS LATER SAYING, OH LORD, EMPLOYERS ARE LEAVING. PEOPLE ARE LEAVING. WE BENEFITED. THE STATE OF TEXAS HAS BENEFITED FROM CALIFORNIA BEING VERY, VERY UNAFFORDABLE. EMPLOYERS HAVE BEEN COMING TO TEXAS AND WE'VE BENEFITED BECAUSE OF THE LOW COST OF, UH, LIVING FOR THEIR EMPLOYEES. THE SAME THING THAT HAPPENED TO US. AND A MICROCOSM, UH, I'M JUST GONNA MENTION WAS 40. I'VE BEEN KIND OF LOOKING AT FORNY. I'VE BEEN, UH, STUDYING THAT MARKET. IT HAS BEEN ONE OF THOSE SMALL TOWNS OUTSIDE THE CITY OF DALLAS. IF THEY FOUGHT HOUSING, THEY FOUGHT, UH, HIGH DENSITY HOUSING, THEY FOUGHT MULTIFAMILY. THEY JUST WANT SINGLE FAMILY HOMES. THEY HAVE A HARD TIME ACCEPTING. THEY'RE NOW ON THE PATH OF DEVELOPMENT FOR DALLAS RIGHT NOW. THE POPULATION HAS INCREASED AND THERE'S A TON OF KIDS THAT ENTERED INTO UH, 40 IN THAT AREA. AND THE SCHOOL DISTRICT IS STARTING TO EXPLODE. AND THEY NEED A STAFF. THEY CAN'T GET TEACHERS DOWN THERE BECAUSE THEY DON'T HAVE APARTMENTS, THEY DON'T HAVE LABLE SPACE. THEY PLAY THE SHORT GAME BY SAYING LOW OCCUPANCY, LOW OCCUPANCY, LOW OCCUPANCY. THEY FIGHT IT, THEY FIGHT IT, THEY FIGHT IT. AND THEN, OH MY GOD, IT'S TOO LATE. SO FINDING THESE EXEMPTIONS AND YES, FINDING EXEMPTIONS, SOME POINTS WE'RE GONNA HAVE TO TAKE A A HUNDRED MILLION DOLLAR DEAL OFF OF TAX ROLLS, UH, IN ORDER BY AFFORDABILITY IN THE MOST UNAFFORDABLE AREAS OF DALLAS BECAUSE THAT IS THE ONLY OPTION AVAILABLE TO US. AND YES, IT ALSO MEANS YOU'RE GETTING AFFORDABILITY TO MAYBE JUST HALF THE PROPERTY. 'CAUSE THAT'S HOW IT WORKS. IT NEEDS TO BE ACCRETED TO THE DEVELOPERS. THERE'S NOTHING WRONG WITH IT, BUT CONSTANTLY SAYING, HEY, YOU CAN'T AFFORD IT. CAN'T AFFORD IT. THAT'S THE PATHWAY FOR 10 YEARS DOWN THE ROAD. THAT IS THE PATHWAY FOR 10 YEARS DOWN THE ROAD WHERE WE SAY O-S-H-I-T, WE'RE IN TRUMP, SO LET'S PLAY THE LONG GAME. THAT'S WHAT WE DO. LET'S NOT PLAY THE SHORT GAME. AND WELL, I'M JUST GONNA WAIT THERE. THANK YOU. BUT YEAH, LET ME SAY IF I CAN JUST ONE THING ABOUT AFFORDABILITY AND LONG GAME SHORT GAME. UM, EVERY ONE OF THE PROJECTS THAT WE HAVE APPROVED HAVE BEEN ACCRETIVE IN TERMS OF WHAT THEY'RE CURRENTLY PAYING IN TAX VERSUS WHAT THE GFC AND MEGAN CITY WILL GET IN TERMS OF FEES AND RENTAL. NOW THE ARGUMENT WE HEAR IS, WELL, WE'RE GIVING THIS UP FOR 75 YEARS. UM, THAT'S ONE OF OUR POLITICIANS AND SHE'S WRONG. OKAY, IT'S 60 YEARS, IT'S NOT 75 YEARS. AND MY RESPONSE WOULD BE, WELL, OKAY, GO TO VEGAS, SHOOT CRAPS AND LET'S SEE WHERE WHERE YOU COME OUT BECAUSE BIRD HAND IS WORTH THROUGH IN THE BUSH. SO WHAT WE'RE TRYING TO DO IN ONE OF THE THINGS THAT WE LOOK AT VERY CAREFULLY IS, OKAY, IS THIS ACCRETIVE IN TERMS OF WE'RE TAKING MONEY OFF THE TAX ROLL, BUT HOW MUCH ARE WE PUTTING BACK THAT CAN BE USED FOR CITY PURPOSES? DOESN'T MATTER WHAT POT IT COMES OUT AS LONG, AS LONG AS THERE'S MONEY. SO I THINK THAT'S A VERY IMPORTANT POINT. MM-HMM . SORRY, GO AHEAD. I DIDN'T MEAN TO INTERRUPT. YOU'RE GOOD. OKAY. UH, KATIE SLATE WITH MINT WOOD REAL ESTATE. UM, I'M ECHOING A LOT OF WHAT THE REST OF THE PEOPLE IN THIS ROOM I'VE SAID TODAY. AND, UH, MY LENS IS THAT I STARTED MY CAREER NOT AS A DEVELOPER, BUT ACTUALLY AS AN URBAN PLANNER. MY COMMITMENT IS TO HOUSING. THAT IS THE ONE THING THAT I STUDIED AND AM PASSIONATE ABOUT AND SPECIFICALLY ABOUT BUILDING COMMUNITIES. AND WHAT WE HAVE DONE AT MIDWOOD AND THANKS TO OUR PARTNERSHIP WITH THE PFC AND AND BUILDING OAK HOUSE IS WE'VE CREATED A HOME THAT IS IN AN INCREDIBLY VIBRANT NEIGHBORHOOD WITH HOUSING THAT IS AVAILABLE. OUR RESIDENTS ARE BUS DRIVERS FOR DART. OUR RESIDENTS ARE A PART OF THE DALLAS POLICE FORCE. OUR RESIDENTS ARE MANAGERS OF LOCAL HOTELS. THEY ARE PART OF WHAT IS THE ECONOMIC ENGINE FOR DALLAS, OUR CITY. THIS IS NOT ABOUT THE REGION. THIS IS ABOUT PROVIDING HOUSING THAT IS ATTRACTIVE FOR OUR CITY. THIS IS ABOUT CONTINUING TO INCREASE OUR TAX BASE BECAUSE WE ARE A PLACE WHERE PEOPLE ARE WILLING TO LIVE, WHERE THEY GET SUPPORTIVE SERVICES FROM PEOPLE WHO ARE HAPPY TO BE IN THIS GREAT CITY. AND THAT IS SO IMPORTANT FOR WHY WE ARE TALKING ABOUT BRINGING ATTRACTIVE [01:50:01] AND AND EXCITING HOUSING TO OUR CITY SEPARATE FROM THE TAX ROLL, LIKE YOU MENTIONED THERE, THERE'S SO MUCH MORE TO THE TAX ROLES THAN WHAT'S TAKEN FROM A LITTLE BIT OF LAND. AND THAT'S SOMETHING IMPORTANT FOR US TO UNDERSCORE AND REALLY THINK ABOUT. I ALSO HAVE LANDS AS I'VE BUILT HOUSING OVER THE LAST 20 YEARS, NOT ALL OF IT HAS BEEN AFFORDABLE. WHAT IT DOES IS PROVIDES A DIVERSITY OF PRODUCT TYPE. AND WHAT'S REALLY IMPORTANT FOR THAT AND FOR OUR CITY IS THAT WE HAVE OPTIONS FOR PEOPLE TO GRADUATE INTO AND TO BE A PART OF AS THEY'RE GOING THROUGH THEIR ENTIRE LIFECYCLE SO THAT THEY'RE NOT RELEGATED TO APARTMENTS THAT ARE JUST A CERTAIN TYPE OF APARTMENT THAT YOU WOULD THINK OF FROM THE EIGHTIES OR, UM, YOU KNOW, SOME OTHER VINTAGE. AND HAVING THAT DIVERSITY IS REALLY IMPORTANT. THE CITY OF DALLAS, THE LEADERSHIP OF THE CITY OF DALLAS, AND EVERY ONE OF THE PROJECTS THAT I HAVE FELT HAS ASKED FOR SOME FORM OF AFFORDABILITY, I HAVE NEVER BEEN ABLE TO DELIVER. I HAVE COMMITTED TO IT IN REZONINGS AND THEN NOT BEEN ABLE TO BUILD THAT PROJECT WITH A REZONING BECAUSE THE MATH JUST DOESN'T WORK. THE INTRODUCTION OF THE PUBLIC FACILITY CORPORATION AND THE TOOL THAT THAT HAS IS THE FIRST TIME THAT ME WITH A TRUE COMMITMENT TO HAVING HOUSING DIVERSITY, WITH ALL OF THE STUDIES THAT WE SEE ABOUT THE IMPORTANCE OF INTEGRATING PEOPLE OF A VARIETY OF SOCIO SOCIOECONOMIC BACKGROUNDS AND PLANTING THEM IN CITIES WHERE THEY HAVE EXPOSURE TO THAT WIDE VARIETY AND THE BENEFITS THAT THAT GIVES US, THIS IS THE FIRST TIME THAT I'VE BEEN ABLE TO ACTUALLY DO IT, WHICH IS REALLY COOL THAT THROUGH THAT PARTNERSHIP WE HAVE NOW, AS EVERYBODY HAS SAID, AND IS AWARE OF THE ELEPHANT IN THE ROOM, IS NOT JUST ABOUT WHAT WE'RE DOING TODAY AND AND HOW WE GET THERE. AND MAN, THERE'S A WHOLE LOT OF DEVELOPERS HERE THAT ARE LOOKING AT IT AND THINKING ABOUT IT WITH THEIR EYES WIDE OPEN AND THEIR BANK ACCOUNTS WIDE OPEN ABOUT HOW MUCH MONEY THEY CAN MAKE. THE REALITY IS THAT RIGHT NOW DEVELOPERS ARE VERY WORRIED NOT JUST BECAUSE OF THE PFC GOING AWAY, BUT BECAUSE THE PFC IS ACTUALLY ONE OF THE ONLY WAYS THAT DEVELOPERS CAN POSSIBLY HAVE HOPES OF UNDERWRITING DEALS SUCCESSFULLY. RIGHT NOW, I HAVE TRIED EVERY TYPE OF DEAL TO UNDERWRITE, AND NONE OF THEM ARE PENCILING EVEN CLOSE TO THE WAY PFCS START TO PENCIL. AND IT'S BECAUSE OF THE ECONOMIC HEADWINDS THAT WE'RE IN RIGHT NOW, WHICH PUTS US IN A PLACE WHERE IF WE ARE SMART IN THE CITY OF DALLAS, WE CAN TAKE THE MOMENTUM AND THE DESIRE FOR ALL OF THESE DEVELOPERS TO WANT TO BUILD HOUSING AND INVESTORS TO WANT TO PLACE THEIR CAPITAL IN DALLAS. AND WE CAN TAKE THAT AND WE CAN MAKE, WE CAN BUILD A GREAT COMMUNITY THAT CONTINUES TO BE ATTRACTIVE. THAT'S WHAT'S BEEN SO GREAT ABOUT DALLAS THROUGH ALL OF THESE DIFFERENT ECONOMIC CYCLES THAT WE'VE WATCHED, IS IT'S FIGURED OUT HOW TO BE OPPORTUNISTIC AND GROW. AND THAT'S THE CHANCE WE HAVE RIGHT NOW. AND I KNOW THAT'S A POINT IN TIME, BUT WHO ARE WE IF WE'RE NOT THINKING ABOUT WHAT WE ARE IN THIS POINT OF TIME? SO THANK YOU FOR YOUR TIME. THANK YOU VERY OH, THANK YOU VERY MUCH. EVERYONE. ANY OTHER FURTHER COMMENTS? WANNA MAKE SURE THAT UNDER ITEM NUMBER THREE, PUBLIC TESTIMONY, AS I SAID IN THE BEGINNING, IF ANYBODY WANTED TO SAY SOMETHING TODAY, YOU ARE WELCOME TO SAY IT. AND WE APPRECIATE EACH AND EVERY ONE OF YOU IN THE ROOM. WE REALLY DO BROADLY DOING FOR THE CITY OF DALLAS AND FOR HOUSING HERE. SO I WANNA SAY, UH, YOU KNOW, I GUESS WE COULD HAVE GOTTEN, LET'S SAY, TWO HOURS OF CONTINUING EDUCATION CREDIT FOR ALL I'VE LEARNED, ALL WE'VE LEARNED TODAY, UH, YOU KNOW, FROM THE DIFFERENT REPRESENTATIVES, FROM THE DIFFERENT PARTS OF, UM, ALL OF OUR COMMUNITIES THAT WE REPRESENT HERE. AND I APPRECIATE THE CONVERSATION TODAY AND WE ARE MAKING PROGRESS, BUT AS WE ALL KNOW, WE'RE NOT DONE. BUT I WANT TO THANK YOU AGAIN FOR YOUR COMMITMENT. AND AS YOU CAN SEE, UH, THERE'S A KEEN INTEREST IN DOING THE PROCESS, RIGHT? AND, UM, WE, WE, HERE AT THE PSC, YOU KNOW, WE'RE TAKING THE LEAD FROM, UH, OUR COUNCIL HERE, THAT, UH, WE DO HAVE A FIDUCIARY RESPONSIBILITY TO PRESENT, UH, POLICY, TO PRESENT OUR BYLAWS AND OUR POLICY, UH, TO THE CITY COUNCIL WHO, WHO ARE, UM, WHO WE SERVE, AND, AND THEN ULTIMATELY THE CITIZENS OF DALLAS. SO, UM, THE NEXT STEP AFTER THIS RESET, AND I APPRECIATE EVERYONE HERE, EVERYONE AGAIN TODAY FOR COMING INCLUDES A GOAL IS TO HAVE A DRAFT OF, UH, A-D-F-P-D-F-P-C POLICY RECOMMENDATIONS FOR FURTHER DISCUSSION AT OUR MAY 27TH MEETING AND ON THE AGENDA. SO, UH, WE LOOK FORWARD TO THAT. UM, WE KNOW THE PROCESS DOES TAKE LONG, BUT NOW AFTER WE'VE RESET, WE'RE, WE'RE HEARING FROM PEOPLE FROM THE COMMUNITY, UH, CITY STAFF AND CITY COUNCIL IS HEARING WHAT THEIR REPRESENTATIVES ARE. THEY APPOINTED OUR THINKING AND I THINK WE'RE ON THE RIGHT PATH. AND I REALLY DO APPRECIATE EACH AND EVERY ONE OF YOU FOR WHAT YOU'RE DOING HERE TODAY. AND, UM, [01:55:01] IT, AS WE SOCIALIZE AFTER THIS MEETING CLOSED, I ALSO WANNA MAKE SURE THAT, UH, EVERYONE, ESPECIALLY THE BOARD MEMBERS, REMEMBER THE TOMA. AND SO, UM, NOT THAT I DON'T LIKE TALKING TO YOU, BUT WE CANNOT CONGREGATE AND LEARN IN LARGE GROUPS AS BOARD MEMBERS. SO YOU MIGHT, WE'LL STAND AT DIFFERENT SIDES OF THE ROOM OR WHATEVER IT IS, UH, BECAUSE WE NEED TO MAKE SURE WE UNDERSTAND, UH, TOMA AND RESPECT IT, RESPECT THE LAW. UH, THANK YOU SO MUCH, VERY MUCH FOR YOUR TIME. AND, UH, SOPHIA, IF YOU COULD PLEASE, OH, I'M SORRY. I'D LIKE TO MAKE A MOTION TO ADJOURN. SO MOVE BY DIRECTOR CALLAS, SECONDED BY DIRECTOR MONTGOMERY. ALL IN FAVOR SIGNIFY BY SAYING AYE. AYE. WE ARE HEREBY ADJOURN AT, UH, 2:28 PM SO WE. * 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.