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[Dallas Housing Finance Corporation on August 12, 2025.]
EVERYONE.UH, IT IS TUESDAY, AUGUST 12TH, 2025.
THE TIME IS 12:02 PM CALLING A REGULAR MEETING OF THE DALLAS HOUSING FINANCE CORPORATION ORDER.
UM, I WILL NOW TURN IT OVER TO, UH, JACKIE.
SHORT TO, UH, DO THE LITTLE CALL.
IF WHEN I CALL YOUR NAME, PLEASE LET ME KNOW OR LET US KNOW IF YOU'RE PRESENT.
I NEED TO, I NEED YOU TO UNMUTE.
IS THIS MUTE? I NEVER WANNA, UH, UH, OR REMOTE HEAR ME.
UH, TREASURER TATI DIRECTOR PATTY COLLINS HERE.
MR. OLIVER ROBINSON? PRESENT DIRECTOR RYAN MOORE.
PRESENT AND DIRECTOR? SEAN SADIE.
AND WITH THAT WE HAVE A BOARD, OH, SORRY.
ARE YOU, YOU ABLE TO UNMUTE ON UNMUTE AND STATE PRESENT? OKAY.
UM, MAYBE YOU CAN CALL IN 'CAUSE WE'LL NEED TO HEAR YOU FOR YOUR VOTE.
UM, MAYBE TRY TO CALL IN IF WEBEX, YOU CAN FIND THAT INFORMATION ON THE MEETING, UM, INSTRUCTION AND ON THE AGENDA AS WELL.
UM, WE'LL NOW MOVE TO ITEM THREE, PUBLIC COMMENTS ON ITEMS. AGENDA ITEMS FOUR THROUGH NINE.
DO ANY MEMBERS OF THE PUBLIC THAT WOULD LIKE TO SPEAK? NOW IS YOUR TIME.
SEE NO MEMBERS OF THE PUBLIC WISH TO SPEAK.
MOVE TO AGENDA ITEM NUMBER FOUR, APPROVAL OF THE MINUTES FOR THE JULY 15TH, 2025.
CITY OF DALLAS HOUSING FINANCE CORPORATION, EHFC, OR CORPORATION MEETING.
THEN I'LL ENTERTAIN A, UM, A MOTION AND A SECOND.
AND THEN AFTER THAT WE'LL HAVE ANY DISCUSSION ON, ON THE MINUTES.
DO I HAVE A MOTION? THE MINUTES? UH, WHO'S THAT? THAT WAS RYAN.
GARCIA, ANY DISCUSSION? GARCIA USUALLY HAVE SOMETHING YOU NO COMMENTS TODAY.
WHAT CAN I SAY? I'M ON VACATION.
UM, WITHOUT ALL IN FAVOR OF, UH, MINUTES.
IF THAT WE'LL MOVE ON TO AGENDA ITEM FIVE.
THIS IS A RESOLUTION APPROVING A 5 0 1 C3 NONPROFIT CORPORATION WITH A CORPORATION AS ITS SOLE MEMBER WHO WILL CARRY OUT THE PURPOSE OF THE CORPORATION.
THEN I'LL TURN IT OVER TO, UM, AARON
YEAH, SO RYAN, RYAN DEFINITELY HAS A BETTER GRAPH OF WHY WE'RE DOING THIS, BUT, UM, RECOGNIZE THAT.
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ONE OF THE BENEFITS THAT THE HOUSING FINANCE CORPORATION BRING, UH, PARTNERSHIPS AND DEVELOPERS INTO SALES TECH, UH, THAT EXEMPTION ON THE HARD CONSTRUCTION COSTS.UM, THERE ARE VARIOUS WAYS UNDER STATE LAW TO, TO ACHIEVE THAT EXEMPTION.
THE WAY WE'VE HISTORICALLY DONE IT IS TO, FOR, UH, AN LLC LIKE WE DO FOR THE
UM, THERE ARE PARTICULAR TYPES OF FINANCING, MOST PROMINENTLY THE HU FINANCINGS, WHERE HUNT HAS NEVER KIND OF GOT COMFORTABLE WITH STRUCTURING WITH A NONPROFIT MASTER OR GENERAL CONTRACTOR AND SUBBING EVERYTHING OUT.
UM, WHAT THEY'VE ALWAYS REQUIRED IS A JOINT VENTURE WHERE THE, THE NONPROFIT VENTURES WITH THE ACTUAL DEVELOPER AND THEIR MINDSET, UM, BEATS THEIR EXPERIENCE THRESHOLD.
AND THAT'S THE WAY THEY'VE ALWAYS REQUIRED THE DEAL DONE.
THE TRICK WITH THAT IS, UM, UNDER THE GUIDANCE THAT'S OUT THERE, THE INDUSTRY HAS NEVER GOTTEN COMFORTABLE THAT YOU CAN USE A LIMITED LIABILITY COMPANY IN THAT JOINT VENTURE SPOT WITH THE CONTRACTOR.
SO, UM, DALLAS, HFC IS ONE OF THE FEW HFCS IN THE STATE THAT DOES HAVE 5 0 1 3 STATUS, BUT IT WOULD, ON THOSE HUNT FINANCINGS, IT REQUIRE, IT WOULD REQUIRE, UH, THE HOUSING FINANCE CORPORATION TO SERVE IN THAT ROLE AND THE JOINT VENTURE DIRECTLY, WHICH FOR LIABILITY REASONS WE ALWAYS LIKE TO AVOID.
AND WE HAVE STEPPED BACK FROM THAT ROLE ON CERTAIN FINANC FOR THAT RE FOR THAT PARTICULAR REASON.
SO FORMING ME INTO ENTITY WOULD GIVE THE, THE VOLUME OF FUND FINANCINGS THAT THE HFC DOES WOULD KEEP THAT OPTION OPEN.
HAVING A SEPARATE NON-PROFIT THAT DOESN'T HAVE THE, UH, ASSET BASE THAT THE HFC HAS TO LIMIT.
THAT LIABILITY EXPOSURE CREATES A VERY CLEAN EXEMPTION.
UH, OTHER HCS HAVE DONE THIS, YOU KNOW, ONE OTHER REASON, ONE OTHER, YOU KNOW, USE, YOU COULD USE THIS NONPROFIT FOR IS YOU COULD HAVE IT AS THE SOLE MEMBER OF THE GP ENTITIES AS WELL, IS YOU DO NEED A 5 0 1 C3 OR MOST, MOST INVESTORS REQUIRE A 5 0 1 C3 OWNER, WHICH WE CAN MEET WITH THE HOC.
UH, BUT IF YOU IN THE FUTURE WANT TO CHANGE AND HAVE THAT ENTITY, ENTITY OWNED BY, UH, A NONPROFIT, UH, THAT WOULD WORK AS WELL.
UH, WE THINK THE LIABILITY SHIELDS VERY STRONG AS IT IS WHEN WE MORE THE LLC, THIS THIS BE ONE OR STEP HS C SO THAT, THAT'S THE REASON.
UM, RYAN, YOU SAID THAT THIS STRUCTURE HAS BEEN USED BY OTHER HFCS, IS THAT YEAH, WE, THEY, THEY'RE, IT IN THE MORE ACTIVE HFCS THAT DO A LOT OF
UH, OTHERS THAT MAY HAVE HAD A FIVE ONE C ABILITY IN THE PAST FOR VARIOUS REASONS, WE'LL USE IT FOR THIS PURPOSE.
SO, UM, IT'S, SO THAT'S, THAT'S DONE.
AND WITH THOSE ONES THAT HAVE BEEN DONE IN OTHER, UM, OTHER HFCS
SO, UM, IT'S ON PRETTY SOLID, YOU KNOW, LEGAL GROUNDS, UH, ON PERSPECTIVE TO SALES TAX EXEMPTIONS.
ANY OTHER QUESTIONS? THE ONLY THING I WOULD NOTE, UH, IS IN THE, UH, MATERIALS THAT WE INCLUDED IN THE BOARD PACKAGE, UM, YOU CONTEMPLATES FIVE TO SEVEN DIRECTORS.
WE, WE DON'T KNOW WHO YOU WANTED, UH, UH, WHITE AS THOSE DIRECTORS, WHETHER WE WANT DHSC OFFICERS AND ONE BOARD.
UH, BUT IF WE COULD DETERMINE THAT, THAT WOULD BE, UH, THAT WOULD BE HELPFUL TO FINALIZE THE PAPERWORK.
YOU NEED A SEPARATE BOARD FOR THIS.
I MEAN, YOU, YOU COULD HAVE THE OVERLAP, THE BOARDS WE SET IT UP PER FIVE IS, YOU KNOW, THE 5 0 1 C WORLD WORLD, THERE'S SOMETIMES DIFFERENT CRITERIA FOR, I DON'T WANNA SAY DEMOGRAPHIC, BUT BACKGROUND.
IS THERE ANY KIND OF RESTRAINTS? NO, I THINK IT, IT, IT, IT TYPICALLY ON THESE, THERE'S, YOU WANT IT TO BE OVERLAPPING RIGHT? WITH THE OR OR AT LEAST HAVE THE HFC CONTROL THAT.
OTHERWISE WE WOULD HAVE ISSUES WITH THIS, WITH THE, WITH THE SALES
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TAX EXEMPTION.BUT SO LONG AS THE CONTROL OF APPOINTMENT IS THROUGH DHFC FOR THIS PURPOSE.
AND THE, FOR THE PROPERTY TAX EXEMPTION, SOMETIMES, LIKE THE BOARD MEMBER'S GOTTA HAVE, SOMEONE'S GOTTA BE LOW INCOME AND SOMEONE'S GOTTA, FOR OUR PURPOSES, SO LONG'S IT'S WITHIN THE CONTROL OF THIS BOARD.
WE'VE GOT PUT ON THAT BOARD, WE, IT ALL TRACKS THROUGH.
I WAS GONNA SAY, I, I RECOMMENDED THIS, KEEP THIS VIEWS AS POSSIBLE BECAUSE THERE'S NOT A LOT OF BUSINESS THAT THE BOARD'S REALLY GONNA BE LIKE, IT'S KIND OF AS TO JUST A FACILITATION OF THIS TAX EXTENSION ON CONSTRUCTION ENTITIES, BUT JUST FOR EASE AND TO AVOID ANY KIND OF TOOMA ISSUES SO THAT THERE'S NOT A QUORUM MM-HMM
YOU KNOW, UH, I'D SAY TRY TO KEEP IT AS FEW AS POSSIBLE.
I RECOMMENDATION, I THINK TO CHAPMAN THE OTHER DAY WAS TO SAY, SPEAK ABOUT ALL THE OFFICERS AND THEN ONE MORE, BUT OBVIOUSLY IT'S, IT'S SOUNDS PREROGATIVE.
SO, UM, LIKE TO DECIDE THAT NOW COULD, COULD WE PUT, UM, APPOINT STAFF MEMBERS TO THE, TO THE BOARD OF THAT? WHAT, WHAT YOU, YOU COULD, WHAT WE'VE KIND OF CONTEMPLATED IS THAT THE, UM, GENERAL MANAGER AND THE ASSISTANT GENERAL MANAGER WOULD SERVE AS SECRETARY AND ASSISTANT SECRETARY, AND THEN WHEN WE DO THESE FINANCINGS, YOU CAN AUTHORIZE THEM TO SIGN ON BEHALF OF THE ENTITY.
THAT'S THE WAY SOME OTHERS HAVE WORKED.
I THINK THAT WORKS PRETTY WELL.
AND SO, I'M SORRY, AGAIN, YOUR RECOMMENDATION, IF WE WANNA KEEP THE BOARD SMALL, WOULD WE, HOW MANY? FIVE.
SO IF THAT TWO OF THEM COULD BE STAFF PEOPLE, THEY COULD, BUT I, LIKE I SAID, I MEAN, I, YOU CAN DO HOWEVER YOU YOU WANT, BUT I, I WOULD MAYBE SAY THE TWO STAFF PEOPLE ARE NON BOARD MEMBER OFFICERS OF A CORPORATION.
SO AGAIN, THEY CAN HANDLE ADMINISTRATIVE MATTERS ON CITING, BUT THEY'RE NOT MAKING DECISIONS ON BOARD.
TO YOUR POINT, DON'T WE RUN INTO TOMA ISSUES WITH A SMALLER BOARD? NO, BECAUSE THAT ISN'T A TOMA.
SO THE HFC WHERE WE'RE SUBJECT TO TOMA, RIGHT? THIS IS A SUB, I DON'T KNOW WHAT YOU'D CALL IT, RIGHT.
BUT IT'S A FULLY SEPARATE CORPORATION THAT'S NOT CREATED THROUGH 3 9 4.
SO REALLY SO THAT WE DON'T RUN INTO QUO, BECAUSE THAT'S LIKE IF YOU HAD EIGHT MEMBERS OF THE BOARD ON THAT BOARD, THEN THERE'S A FORM OF OUR BOARD.
AND SO ANY MEETING THAT YOU HAD THERE, YOU'D HAVE TO DO A TOMA PREPARATION TO, TO HAVE THAT MEETING.
IS THERE ANY DOWNSIDE OR RISK, IT SOUNDS LIKE OUTSIDE OF THE LEGAL WHATEVER FILING? THAT'S EXACTLY RIGHT.
I MEAN, DOWNSIDE IS, IT'S ANOTHER ENTITY YOU'VE GOTTA ADMINISTER.
SO, UM, FILE THE ANNUAL NINE 90 WITH THE IRS ACCOUNT, UH, AND DO, BUT THAT, THAT'S REALLY THE, UH, UM, UM, ADMINISTRATIVE BURDEN.
I MEAN, IT'S REALLY A RISK FITTING IT.
AND SO, UM, AARON, WOULD YOU INTEND BE TO PUT THIS ON THE AGENDA THE NEXT IN BETWEEN NOW, NOW, AND THEN KIND OF COME UP WITH THE IDEA OF WHAT THAT ABORTION BE COMPENSATED CONSTITUTED, AND THEN BE ACTION ITEM AT THE NEXT MEETING? HOW, HOW DO WE GET THIS DONE? I GUESS YOU GUYS COME THROUGH CONSENSUS TO SAY SIX BOARD MEMBERS OR, I DON'T KNOW, MAYBE YOU CAN JUST APPROVE AS, AS IS AND SAY, TO BE FINALIZED, LET'S JUST, LET'S JUST GET THIS APPROVED.
YEAH, THERE'S, IF THERE'S NO MAJOR OBJECTIONS, JUST LET YOU KNOW.
THE EXECUTIVE TEAM KIND OF DECIDE THAT.
UM, ANY MORE DISCUSSION? ANY FROM THE, UH, ON FOLKS THAT ARE ONLINE? UM, THIS IS MARCY.
THERE'S CONSTRUCTION GOING ON WHERE I AM.
UM, BUT I WAS JUST GONNA SAY THAT, UH, THAT WE MAY, WE WANT TO APPROVE THIS, BUT, UM, SUBJECT TO, WE MIGHT DECIDE THAT THE NAME, UH, WOULD BE, IT WOULD BE BENEFICIAL TO CHANGE THE NAME BECAUSE THERE'S ANOTHER FOUNDATION THAT HAS A SIMILAR NAME.
EVEN THOUGH THE SECRETARY OF STATE WOULD ALLOW THIS NAME, WE'RE THINKING WE DON'T REALLY FEEL ALL THAT WEDDED TO THIS NAME.
AND SO WE MIGHT END UP, UM, DOING A CHANGE TO THE NAME.
JUST WANTED TO POINT THAT OUT.
SO FIRST, WOULD YOUR RECOMMENDATION THEN BE THAT, UH, THE RESOLUTION BE MODIFIED TO RE TO GIVE THE FLEXIBILITY TO CHANGE THE NAME, UM, FOR WE'RE PROVING TODAY SO WE'RE NOT LOCKED INTO THE YES.
THAT WOULD BE MY RECOMMENDATION.
ANY OTHER COMMENTS? ALRIGHT, WITH THAT, UM, THE RESOLUTION, I'LL EVEN, UH,
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ASK FOR A MOTION AND A SECOND RESOLUTION IS TO CONSIDER AND ADOPT A RESOLUTION APPROVING THE CREATION OF A 5 0 1 C3 NONPROFIT CORPORATION WITH A CORPORATION AS THE SOLE MEMBER WITHIN TEXAS SECRETARY OF STATE TO BE NAMED FOUNDATION FOR DALLAS HOUSING, THE FOUNDATION OR SUCH OTHER NAME, SLB DEEMED, UH, ACCEPTABLE BY THE GENERAL MANAGER AFTER THE CONSULTATION APPROVING APPOINTING AN INITIAL BOARD OF DIRECTORS, APPOINTING AN AGENT OF THE FOUNDATION, AND AUTHORIZING THE PREPARATION AND FILING OF CERTAIN DOCUMENTS, THE INTERNAL REVENUE SERVICE IN STATE OF TEXAS, TO FORM AND ESTABLISH THE FOUNDATION AND OBTAIN RECOGNITION OF 5 0 1 C3 STATUS.YEAH, I MOTION TO APPROVE WHAT THE ADDITIONAL LINK, UH, APPROVE AS WRITTEN, WHAT THE ADDITIONAL LANGUAGE PROVIDED RELATED TO THE NAME.
THAT'LL, UH, TAKE A ROLL CALL.
UM, ABSENT,
UH, DISTRICT FOUR SHADA OLA APPROVED.
IS THAT APPROVED? UH, DIRECTOR APPROVED.
DIRECTOR MARSHALL C DIRECTOR FAROH? YES.
PRESENT IS THAT 3 4 5 6 7 8, 10 IN FAVOR? NONE OPPOSED.
THE NEXT ITEM IS REVIEW IN DISCUSSION OF THE SHARED SERVICES AGREEMENT BETWEEN THE CORPORATION AND DALLAS PUBLIC FACILITY CORPORATION FOR MANAGEMENT, ADMINISTRATIVE, OPERATIONAL, AND OR OTHER SERVICES.
WOULD YOU MIND IF WE DO THE PRESENTATION, UH, FOR BEFORE THE YEAH.
WE'RE GONNA MAKE A, I'M GONNA, UH, CHANGE THE ORDER, UM, AND WE'RE GOING TO NOW HEAR ITEM SEVEN, WHICH IS, AND THEN WE'LL GO TO ITEM SIX AFTER THAT, AND THEN PROCEED IN NORMAL ORDER.
SO THEN WE'LL GO TO ITEM SEVEN.
THIS IS A PRESENTATION BY VAN PARKER REGARDING THE SERVICES PROVIDED BY HOUSING CONNECTOR.
UM, AND I'LL, IF YOU GUYS WILL APPROACH THE, UH, PODIUM YEAH.
THAT YOU WANNA, WANNA COME UP TO THE MICROPHONE? YEAH.
SO FOR THOSE OF YOU THAT DON'T KNOW, BEN, SHE IS THE NOW MANAGING DIRECTOR OF HOUSING CONNECTOR.
IT'S A, I GUESS IT'S A NATIONWIDE, UH, NONPROFIT THAT HELPS FOLKS MATRICULATE INTO PERMANENT HOUSING, AND THEY ARE DOING SOME GREAT WORK HERE IN DALLAS AND, AND SURROUNDING AREAS.
AND SO SHE'D COME TO US LAST YEAR, I BELIEVE, AND WE WE'RE ATTEMPTING TO INCORPORATE THOSE SERVICES WITH, WITH OUR PROGRAMS. AND SO I THINK THEY HAVE SOME GOOD UPDATES.
UH, SO I'LL LET VAN EXPLAIN MORE.
AND JUST SO I UNDERSTAND, MAYBE YOU CAN CONFIRM, MY UNDERSTANDING IS SINCE LAST YEAR, UM, WHEN YOU CAME AND PRESENTED TO US THAT YOU'VE BEEN WORKING WITH THE CITY OF DALLAS AND RECENTLY OBTAINED A $250,000 GRANT FROM THE CITY FOR A SEPARATE HOUSING PROGRAM, AND, UM, HAVE ALSO OBTAINED A GRANT FROM UNITED WAY, UH, DALLAS FOR NORTH TEXAS TO HELP FUND YOUR, UH, OPERATIONS.
IT SOUNDS LIKE YOU'VE MADE A LOT OF, THERE'S BEEN A LOT OF ACTION BETWEEN, UM, LAST YEAR, WHICH IS ABOUT THIS TIME AND NOW.
WITH THAT, LET TURN OVER TO YOU GUYS.
THANK YOU GUYS SO MUCH, BOTH AARON AND TONY.
YOU GUYS HAVE BEEN SUPPORTERS OF OUR WORK FROM THE BEGINNING.
UM, I JUST WANTED TO ALSO POP ALONG MY FOUNDER
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WHO CAME IN FROM SEATTLE, UM, AND YOU GOT IT RIGHT.WE, UH, WE INITIALLY SPOKE WITH YOU GUYS ABOUT A YEAR AGO, AND I HAD JUST BEEN PROMOTED INTO THE MANAGING DIRECTOR ROLE.
UH, I STARTED WITH THE ORGANIZATION AS OUR PROPERTY PARTNERSHIP MANAGER BACK IN 2023.
UM, A LOT HAS CHANGED, UH, IN ONE YEAR SINCE I INITIALLY MET WITH YOU GUYS.
AND SO WE WANTED TO BRING YOU SOME UPDATES.
JUST AS TONY MENTIONED, UM, NOT ONLY ARE WE WORKING WITH THE CITY, BUT WE'RE ALSO, UH, WE'VE DEVISED LIKE A NEW PROGRAM THAT HAS REALLY SEEN A LOT OF SUCCESS HERE IN DALLAS.
AND WE COULDN'T THINK OF A BETTER PARTNER, UM, A STRATEGIC PARTNER OTHER THAN THE HIC TO CONTINUE TO DO THE SW AND MAKE
UH, ONE OF THE BIG UPDATES THAT WE HAD IS THAT I ACTUALLY PARTICIPATED IN THE UNITED WAY, DALLAS SOCIAL INNOVATION PITCH.
AND SEAN ZADY WAS ACTUALLY MY MENTOR IN THAT, UH, PITCH COMPETITION, WHICH ALLOWED ME TO WIN OVER A HUNDRED THOUSAND DOLLARS, UH, FOR OUR EFFORTS HERE IN DALLAS SPECIFICALLY.
AND THE WHOLE PITCH WAS AROUND THE WORK THAT, HOW IT IS SOMETHING THAT IS INNOVATIVE AND IS DIFFERENT, UM, THAN ANYTHING ELSE AS FAR AS NONPROFITS GO, AND EVEN FOR PROFITS.
SO JUST TO KIND OF LAY THE FOUNDATION, I WANT TO GIVE YOU A REMINDER OF THE WORK THAT WE DO.
SO, HOUSING CONNECTOR IS A NON-PROFIT ORGANIZATION.
OUR FOCUS IS ON INCREASING ACCESS TO AFFORDABLE HOUSING FOR FOLKS THAT HAVE SOME TYPE OF BARRIER.
YOU KNOW, THERE'S SO MANY FOLKS THAT WALK INTO AN APARTMENT AND THEY'RE THINKING THEY'RE GONNA GET APPROVED BECAUSE THEY HAVE A JOB.
MAYBE THEY'VE BEEN WORKING ON THEIR CREDIT, BUT UNFORTUNATELY THAT CREDIT IS STILL A LITTLE BIT LOWER THAN MOST PROPERTIES WOULD ACCEPT.
AND SO OFTEN THEY'RE BEING TURNED DOWN EVEN THOUGH THEY'RE DOING THE BEST THAT THEY CAN BE ON THE RIGHT TRACK AND HOUSING CONNECTOR PARTNERS WITH THESE PROPERTIES TO BASICALLY ACT AS FREE INSURANCE POLICY.
SO THAT WAY WHEN SOMEONE COMES THROUGH THE DOOR, WHETHER THEY'RE REFERRED THROUGH HOUSING CONNECTOR OR OTHERWISE, THIS PERSON NOW HAS THIS INSURANCE POLICY THAT SAYS, HEY, WE REFERRED THIS PERSON.
WE ARE BACKING THEM AND GIVING THEM THAT, UH, THAT ADVOCACY AND SUPPORT TO SAY IF THEY'RE UNABLE TO PAY THEIR RENT, YOU CAN SIMPLY COME TO HOUSING CONNECTOR FOR THAT PAYMENT RATHER THAN GOING DOWN THAT CONVICTION.
SO OUR FOCUS IS REALLY ON INCREASING ACCESS TO HOUSING, BUT ALSO EVICTION PREVENTION.
AND WE'VE SEEN A LOT OF SUCCESS, JUST AS I MENTIONED, YOU KNOW, WE'VE BEEN DOING THIS FOR ABOUT TWO YEARS NOW, AND WE'VE HOUSED OVER 800 PEOPLE RIGHT HERE AT THE METROPLEX IN THAT TIME.
UM, THE BIGGEST THING THAT WE FOCUSED ON DURING OUR PITCH WITH UNITED WAY IS THE FACT THAT THERE ARE ABOUT 86,000 PEOPLE ACROSS THE METROPLEX THAT ARE A PART OF THE HIDDEN HOMELESS POPULATION.
THE HIDDEN HOMELESS POPULATION IS OFTEN FORGOTTEN ABOUT.
RIGHT? WHAT WE THINK ABOUT WHEN IT COMES TO HOMELESSNESS IS STREET HOMELESSNESS, THE PEOPLE THAT WE SEE EVERY SINGLE DAY.
BUT WHAT WE DON'T THINK ABOUT ARE THE FOLKS THAT ARE TEACHERS MAYBE STAYING ON SOMEONE'S COUCH, MAYBE THEY'RE STAYING IN A MOTEL OR HOTEL ROOM, AND THEY'RE PAYING WEEKLY BECAUSE THEY CAN'T AFFORD OR CAN'T QUALIFY FOR PROPERTY, EVEN THOUGH, AGAIN, THEY'RE DOING WHAT THEY CAN TO GET ON THE RIGHT TRACK.
SO THROUGH OUR RESEARCH, WE FOUND THAT THERE'S ABOUT 86,000 PEOPLE IN THAT POPULATION ALONE, JUST IN THE METROPLEX.
WHEREAS THERE ARE ABOUT 8% OF PROPERTIES THAT ARE VACANT, RIGHT? SO THERE ARE THOUSANDS OF UNITS THAT ARE JUST SITTING VACANT BECAUSE THESE FOLKS CAN'T QUALIFY FOR THAT.
AND THAT'S WHERE HOUSING CONNECTOR COMES IN TO ENSURE THAT THEY CAN'T HAVE A PLACE TO COME.
I WANTED TO GIVE YOU THOSE UPDATES, BUT I ALSO WANTED TO SHARE SOME SUCCESS THAT WE'VE HAD IN OUR OTHER MARKETS AS WELL.
AND THAT'S WHY I BROUGHT, UH, BROUGHT ALONG MY FOUNDER.
SO, SCHEDULE K, MINDY, SAY, I WANNA, BEFORE YOU, UM, PASS OFF, TIM, I WANNA ASK YOU A QUESTION ABOUT THE PROGRAM YOU JUST DESCRIBED.
AND I'VE HAD CONVERSATION WITH YOU, UM, RECENTLY ABOUT THIS.
AND I WAS INTERESTED TO UNDERSTAND, I WANNA MAKE SURE I UNDERSTAND THIS CORRECTLY BECAUSE I WAS ASKING, YOU KNOW, WHAT, WHAT IS IT THAT'S CAUSING, UM, THESE PEOPLE WHO, WHO SHOULD BE IN, IN THESE STUDENTS TO HAVE OR POOR CREDIT SCORE? AND I WANNA MAKE SURE I'M RESTATING THIS CORRECTLY, THAT I BELIEVE WHAT YOU TOLD ME IS THAT ONE OF THE BIGGEST, UH, CONTRIBUTORS ARE SITUATIONS WHERE THERE IS A PARTNER AND, AND CHILDREN THAT ARE, UM, VICTIMS OF DOMESTIC ABUSE VIOLENCE, AND THE PARTNER IS ON THE LEASE WITH THE, THE ABUSER.
AND SO THE FAMILY BASICALLY HAS TO FLEE THEIR HOME, BUT, AND IT'S NO LONGER POSITIONED TO BE PAID RENT ON PLACE, OR NOT OCCUPIED, BUT THEY'RE STILL ON THE LEASE.
AND SO THEIR CREDIT RATING GETS, IN ADDITION, BEING SUBJECT TO ABUSE AND CREDIT RATING GETS HAMMERED.
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SO THEN THEY'RE NOT ELIGIBLE UNDER TRADITIONAL UNDERWRITING CRITERIA TO, UM, RENT A UNIT.AND THAT'S ONE OF THE, THAT'S WHERE A LOT OF THE DEMAND FOR THIS PROGRAM COMES FROM.
IS THAT, THAT'S THAT CORRECT PERCENT? CORRECT.
I'D SAY IT'S ABOUT 54% OF THE FOLKS THAT ARE UNABLE TO QUALIFY FOR HOUSING BECAUSE OF THEIR CREDIT SCORE.
AND JUST AS YOU MENTIONED, THAT'S A LOT OF WHAT WE'RE SEEING.
UM, THERE ARE, UH, YOU KNOW, I HAD MENTIONED TO YOU GUYS MY STORY, AND I ALSO MENTIONED IT IN MY UNITED WAY PITCH, BUT I GREW UP WITH A SINGLE MOM, RIGHT? MY MOM DID WHATEVER SHE COULD TO PROVIDE FOR US, AND THE RENT IS TYPICALLY THE FIRST THING THAT SHE COULD PAY, BUT IT'S THOSE OTHER THINGS THAT MIGHT COUNT AS THE DATE, RIGHT? BECAUSE SHE WASN'T PAYING THOSE THINGS THAT ULTIMATELY WOULD AFFECT OUR CREDIT AND WOULD MAKE IT MORE COMPLICATED FOR US TO FIND HER NEXT TERM.
AND WE'RE SEEING THAT A LOT WITH THE FOLKS THAT WE WORK WITH.
IT'S ABOUT 40% OF THE FOLKS IN OUR PROGRAM ARE SEEING MOTHERS AS WELL.
AND SO YOU SAID THAT'S ABOUT 54% OF THE IN WHAT, WHAT'S THE NEXT HIGHEST RIGHT? YOU KNOW, INCOME, I'M SORRY? INCOME.
SO NOT BEING ABLE TO MAKE THAT THREE TIMES THE RENT MM-HMM
BUT THESE ARE PEOPLE, CAN YOU, YOU FEEL COMFORTABLE WHEN YOU DO YOUR AND RIGHT.
THAT THEY CAN STRETCH AND, AND, YOU KNOW, PAY A HIGHER, HIGHER THAN WHAT IS THE MARKET STANDARD FOR? YEAH, SO WHAT'S REALLY INTERESTING ABOUT HOUSE CONNECTOR IS THAT WE'RE NOT ASKING, UH, THE PROPERTY PARTNER TO REDUCE THEIR RENTS IN ANY WAY.
OF COURSE, WE'RE LOOKING TO ESSENTIALLY HELP WITH AFFORDABLE HOUSING.
SO WE'RE NOT GONNA, YOU KNOW, MAYBE HAVE A CLASS A PROPERTY, BUT AT THE END OF THE DAY, THESE ARE UNITS THAT PEOPLE CAN'T AFFORD.
AND AGAIN, WE'RE NEGOTIATING WITH THE PROPERTY TO REDUCE THEIR APPLICATION CRITERIA, RIGHT? SO THEIR GENERAL CRITERIA MIGHT BE THREE TIMES THE RENT, THE FOLKS IN OUR PROGRAM ARE ABLE TO QUALIFY WITH TWO OR TWO AND A HALF TIMES.
AND THEN THIS PROGRAM, THEN WE'LL GET INTO YOUR, YOUR COLLEGE, UH, PRESENTATION.
BUT, UM, AND IF ANYBODY ELSE HAS QUESTIONS THIS TIME TOO, BUT, UM, THIS PROGRAM IS SOMETHING THAT YOU'VE DONE IN OTHER CITIES IN, HAVE YOU STARTED IT HERE IN NORTH TEXAS YET? OR, UM, OKAY, SO THAT WAS WHEN YOU MENTIONED THE 800 THAT'S IN THIS PROGRAM.
AND SO YOU'RE LOOKING TO EXPAND THE PROGRAM? YEAH.
UM, AND THEN YOU'RE LOOKING FOR A, UM, YOU KNOW, SOME SORT OF, YOU KNOW, GRANT FROM US TO, TO FACILITATE THIS.
IT SOUNDS LIKE SIMULTANEOUSLY ARE YOU PARTNERING WITH COMMUNITIES, PROPERTIES AND WORKING WITH INDIVIDUALS? CORRECT.
DOES ANYBODY HAVE ANY MORE QUESTIONS ABOUT THE FIRST PART OF THE PRESENTATION? IF NOT, SO THIS IS, THIS IS MARCY.
UM, DAN, COULD YOU KINDA, UM, TELL US HOW YOUR PROGRAM RELATES WITH VOUCHERS? BECAUSE I KNOW IN THE NEW LEGISLATION THAT GOVERNS HFCS, UM, ONE OF THE THINGS THAT'S IN THERE IS THAT THEY ARE MANDATED TO ACCEPT VOUCHERS, WHICH IS GREAT.
WE'VE ALWAYS, WE HAVE ALREADY BEEN DOING THAT.
UM, THE CITY OF DALLAS UH, REQUIRES THAT, BUT ALSO IN THE NEW LEGISLATION IT LOWERS THE INCOME REQUIREMENT FOR VOUCHER HOLDERS TO TWO AND A HALF TIMES THERE, UH, INCOME.
THANKS SO MUCH FOR THAT, UH, BRINGING THAT UP, MARCY.
YEAH, WE'RE SO EXCITED TO HEAR THAT.
UM, I THINK, YOU KNOW, AS SKE MENTIONED, BECAUSE WE STARTED HOUSING CONNECTOR IN SEATTLE WHERE THEY'RE ALREADY THE SOURCE OF INCOME PROTECTION, WHEN WE FIRST, UH, YOU KNOW, OPENED UP IN DALLAS, IT WAS A CHALLENGE FOR US TO BE ABLE TO WORK WITH VOUCHER HOLDERS BECAUSE THERE WERE SO MANY PROPERTIES THAT DIDN'T WANNA ACCEPT THAT VOUCHER.
UM, NOW THAT THAT IS CHANGING, WE ACTUALLY HAVE SEEN A LOT OF GROWTH, A LOT OF SUCCESS WITH OUR VOUCHER HOLDERS, PARTICULARLY BECAUSE WE'RE PARTNERED WITH, UH, THE DALLAS HOUSEMAN DEGREE AS WELL TO FOCUS ON HIGH OPPORTUNITY ZONES.
SO I WOULD SAY RIGHT NOW WE'RE AT ABOUT 20 TO 25% OF THE FOLKS THAT WE'VE HOUSE THAT ALSO HAVE HOUSING VOUCHER AS WELL.
AND WE WANT TO CONTINUE, UH, TO BE ABLE TO HOUSE MORE FOLKS WITH, UH, VOUCHERS ALSO.
ANY OTHER QUESTIONS BEFORE WE MOVE ON THE SECOND HALF OF THE PRESENTATION? ALRIGHT.
UM, KEL SHI I'LL UM, GO AHEAD, JUST GIVE A BRIEF INTRODUCTION.
BEFORE START, WE KNOW VAN BECAUSE YOU WERE HERE A YEAR AGO OR ACROSS THE STREET AT THE LIBRARY.
UM, SOCHI MENTEE IS THE FOUNDER AND CEO OF HOUSING CONNECTOR BEFORE, BEFORE MOVING TO SEATTLE TO START, UH, HOUSING CONNECTOR.
HE LIVED IN DALLAS FOR 18 YEARS, HAVING IMMIGRATED FROM KOSOVO AND WELCOMED IN BY THE DALLAS COMMUNITY.
HE WENT TO HAM FRANK ELEMENTARY AND EVENTUALLY GRADUATED FROM SMU, UM, WORKED AT THE FEDERAL RESERVE BANK HERE IN DALLAS, UM, AND ALSO SERVED, UH, RIGHT HERE IN THIS, UH, BUILDING IN THE DALLAS ECONOMIC DEVELOPMENT COMMISSION.
UM, SO IT'S GREAT TO HAVE HIM BACK TODAY AND, UH, THAT'LL GO AHEAD AND WATCH YOUR
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PRESENTATION.IT'S ACTUALLY REALLY COOL FOR ME TO BE BACK HERE.
UM, I, UH, I MOVED TO SEATTLE ABOUT NINE YEARS AGO, BUT REALLY THIS IS WHERE I STARTED.
UM, AND SOMEBODY WAS GIVING ME A HARD TIME AROUND JOINING A COMMISSION WHEN I WAS 24 YEARS OLD, BUT TO ME IT FELT LIKE THE BEST WAY TO GET TO KNOW AND BE A PART OF YOUR CBU WAS ACTUALLY SIT ON ONE OF THESE BOARDS AND COMMISSIONS AND SERVE.
UM, AND I FEEL LIKE IT GAVE ME SUCH A PERSPECTIVE INTO HOW GOVERNMENT IN OUR COMMUNITY WORKS.
SO IT'S ACTUALLY REALLY COOL FOR ME TO BE, UH, BE BACK HERE, UH, IN THIS SPACE.
I THINK JUST A LITTLE BIT OF SOME BACKGROUND, UH, BEN HAD TALKED ABOUT PROBLEM HERE.
WHEN WE ZOOM OUT NATIONALLY, WE HAVE ABOUT 2.4 MILLION PEOPLE THAT ARE HOUSING INSECURE AND THAT ARE DESPERATELY TRYING TO FIND AFFORDABLE, STABLE HOUSING.
AND SO FOR US, ESPECIALLY WITH, WITH WANTING TO PARTNER WITH YOU ALL, IS THAT THE ALIGNMENT BETWEEN YOUR MISSION AROUND MOVING AFFORDABLE, ELEVATED, UH, AS WELL AS THE FACT THAT Y'ALL TAKE A DIFFERENT, UH, I WOULD SAY MUCH MORE STREAMLINED APPROACH, REALLY ALIGNED WITH THE WAY THAT WE ABOUT DOING WORK.
AND SO WHEN WE STARTED THIS, OUR GOAL WAS TO SAY, WE KNOW THAT THERE'S A HUGE NEED, WE NEED TO BUILD HOUSES, BUT WE ALSO ARE NOT GONNA BE ABLE TO BUILD OUR WAY OUT OF THE BUSINESS.
AND SO HOW DO WE TAP INTO THE EXISTING INVENTORY IN THE UNITS THAT ARE BEING BUILT TO MAKE SURE THAT THEY'RE ACCESSIBLE AND AFFORDABLE FOR THE PEOPLE IN OUR COMMUNITY THAT OFTEN DON'T SEE.
AND SO WHAT WE DO, AGAIN, AND DAN MENTIONED IS WE PARTNER RIGHT NOW WITH PROPERTIES.
WE WORK WITH OVER 200,000 UNITS NATIONALLY THAT HAVE SEVEN MARKETS.
AND WHAT WE DO IS WE OFFER THOSE PROPERTY OWNERS AND MANAGERS, WE CALL 'EM OUR PARTNERS SUPPORT IN EXCHANGE FOR THEM BEING A PART OF THE SOLUTION.
AND THE FUNDAMENTAL HYPOTHESIS THAT WE HAVE IS THAT HOUSING PROVIDERS ARE THE SOLUTION TO THIS CRISIS, BUT THEY NEED TO MAKE SURE THAT THEY'RE EQUIPPED WITH THE RIGHT SUPPORT TO BE ABLE TO ALSO MAINTAIN THEIR OPERATIONS AND KEEP A SAFE AND STABLE COMMUNITY BILL.
AND THAT'S REALLY WHAT WE DO, IS BY DELIVERING SOLUTIONS TO THEM, THEY'RE ABLE TO OPEN THE DOOR TO MORE PEOPLE THAN THEY TRADITIONALLY WOULD.
AND THEN WE'RE ABLE TO BUILD THEIR UNITS IN INCREASE OCCUPANCY RANGE AND ALSO STICK AROUND WITH THOSE FOLKS FOR THE NEXT TWO YEARS TO MAKE SURE THIS ISN'T JUST A REVOLVING DOOR WHERE ALL THAT STABILITY HAVE NOTHING TO BE ON AND END UP BEATING BACK AND EXPERIENCING INSECURITY AT POTENTIALLY HOMELESSNESS.
AND SO OUR SOLUTIONS ARE DESIGNED TO HELP THE PROPERTY, BUT ALSO HELP THE RESIDENT PROVIDE THREE MONTHS OF EMERGENCY RENT SUPPORT, $5,000 OF DAMAGE TO MITIGATION, A SINGLE POINT OF CONTACT FOR THE PROPERTY IF THEY EVER HAVE AN ISSUE.
AND THEN TWO YEARS OF THAT STABILITY SUPPORT.
AND ALL OF THESE HELP THE PROPERTY MAINTAIN A, A STABLE BUSINESS, WHICH AGAIN, WE NEED TO, TO BE ABLE TO CONTINUE OPENING DOORS IN THE COMMUNITY, BUT IT ALSO KEEPS FAMILIES IN THOSE UNITS AND ADDRESSES THIS ISSUE OF THE REVOLVING DOOR THAT IS OUR, UH, HOUSING CRISIS.
WHAT I WOULD SAY IS, VAN KINDA HIGHLIGHTED IT, THIS IS NOT A THEM PROBLEM.
LIKE ALL OF US ARE ACTUALLY MUCH CLOSER TO THIS THAN YOU.
THINK ABOUT, AGAIN, VAN HAS SHARED HER STORY.
I CAME HERE AS A REFUGEE, WE HAD NO RENTAL, WE HAD NO CREDIT.
AND SO THERE WAS NO WAY TO GET HOUSING WITHOUT SOMEBODY OPENING THE STORE.
BUT EVEN HERE WITHIN ACTUALLY CITY HALL, YOU KNOW, WE HAVE PEOPLE THAT REACH OUT TO US FROM THE CITY OF DALLAS GOVERNMENT EMPLOYEES AND WE'VE BEEN ABLE TO HOUSE OVER THE LAST TWO YEARS THAT ARE STRUGGLING TO FIND HOUSING BECAUSE OF THESE BARRIERS MUCH FOR CREDIT SCORE OR A PAST EVICTION OR PAST DEBT.
AND SO AGAIN, THIS IS A MUCH BIGGER PROBLEM I WE HAVE TO TALK ABOUT, BUT IT'S ONE THAT A LOT OF FOLKS HERE, AND WHEN YOU THINK ABOUT THE FACT THAT 40% OF PEOPLE IN NORTH TEXAS ARE ONE CRISIS AWAY FROM BEING ABLE TO AFFORD THEIR RENT, THIS IS A ALSO A TIPPING POINT THAT IF WE DON'T ADDRESS THIS, WE'RE GONNA SEE MORE AND MORE FOLKS HERE OUR COMMUNITY THAT CAN BE STRUGGLING.
SO I THINK FOR US, WHAT WE'RE EXCITED IS THAT WE'VE DEMONSTRATED THIS IN OTHER MARKETS.
I MENTIONED IN SEATTLE, IN UH, DENVER AND PORTLAND.
AND WE'RE EXCITED TO BE ABLE TO GROW THIS WORK HERE AS WELL AND THINK ABOUT HOW DO WE USE THIS INTERSECTION BETWEEN PROPERTIES, NON-PROFITS, AND ALSO THE TECHNOLOGY AND THE PRODUCTS THAT WE BUILD TO BE ABLE TO INCREASE HOW FOLKS ARE FINDING AFFORDABLE HOUSING AND THEN ALSO MAKE SURE THAT THE SOLUTION STAYS.
SO ONE OF THE THINGS THAT'S IMPORTANT FOR ME AS AN ECONOMIST IS WHAT IS THE ROI? SO FOR US, IT COSTS US ABOUT $1,100 ALL INCLUDED THE PRODUCT, THE TECHNOLOGY, THE PARTNERSHIPS, THE INSURANCE TO HOUSE AND KEEP SOME OF THE HOUSES FOR TWO YEARS.
WHEN YOU THINK ABOUT THE COST TO NORTH TEXAS WHEN SOMEBODY EXPERIENCES HOMELESSNESS AND LOOSELY THAT COMPANY, THAT NUMBER IS ABOUT 45,000 MODELS.
WHEN YOU THINK ABOUT THE ER VISITS, THE POLICE CALLS, ALL THE DIRECT SERVICES.
AND SO FOR US, THIS IS NOT ONLY A SOLUTION THAT WE FEEL LIKE IS THE MOST DIGNIFIED BRAIN OF FOLKS, BUT IT'S ALSO A SOLUTION THAT FINANCIALLY JUST MAKES A LOT OF SENSE BECAUSE WE ARE ABLE TO SAVE THOSE SO MUCH MONEY TO A COMMUNITY BY GETTING INDIVIDUALS INTO HOUSING, NOT LETTING THEM PICK CRISIS, AND THEN HAVE THAT PATHWAY TO STABILITY AND
[00:35:01]
ECONOMIC MOBILITY THAT ULTIMATELY ALLOWS THEM TO NOT BE DEPENDENT ON SOME OF THESE SOLUTIONS AND SAFETY THINGS.AND SO AGAIN, AS MENTIONED, WE'VE DONE THIS WITH ABOUT 800 CODES HERE LOCALLY, AND WE'RE REALLY EXCITED TO GROW AND TO BE ABLE TO BUILD SOME OF THE PRODUCTS AND THE RELATIONSHIPS THAT WE'VE HAD AND EXPAND THAT LEAD.
UH, AND WE FEEL LIKE THE WORK THAT Y'ALL ARE DOING, THE FACT THAT YOU ARE INVESTING IN THESE PROPERTIES, I THINK ALIGNS REALLY WELL WITH THE MISSION THAT WE HAVE TO BE ABLE TO JUST AMPLIFY THIS IMPACT, UH, ACROSS.
I'M HAPPY TO TAKE ANY QUESTIONS.
I'M ALSO HAPPY TO DOUBLE CLICK AND GO DEEPER INTO ANY OF THESE 'CAUSE IT'S SO MUCH MORE COMPLEX RIGHT, THAN AT THE THE SURFACE LEVEL.
SO IF YOU HAVE ANY QUESTIONS ON THE SPECIFICS, I'M HAPPY TO GO INTO, UH, IN GENERAL I DO.
WHAT'S THE PIPELINE FOR HOW YOU CONNECT EVERYONE TO KEEP, UH, PROPERTY NOT KNOWING THAT YOU'RE CONNECTED, THEN NOT QUALIFIED AND PROPERTY CONTACTS YOU CONNECT TO PEOPLE?
AND THERE'S TWO, UH, WAYS THAT WE WORK RIGHT NOW.
OUR TWO PATHWAYS ARE WHAT WE CALL ACCESS, WHICH IS THE TRADITIONAL ROUTE OF WORKING WITH COMMUNITY PARTNERS, SOCIAL SERVICE ORGANIZATIONS THAT HAVE THOSE CASE MANAGERS, THAT HAVE FOLKS THAT ARE LOOKING FOR HOUSING.
SO WE ACT AS THE CONNECTOR, RIGHT, TO CONNECT THOSE COMMUNITY PARTNERS TO THE PROPERTIES THAT, UM, HAVE AGREED TO NEGOTIATE DOWN THAT CRITERIA.
BUT JUST AS YOU MENTIONED, WE'VE SEEN A LOT OF SUCCESS WITH WHAT WE'RE CALLING DIRECT MEETING.
OUR PROPERTIES ARE SAYING, HEY, DON'T MEET THIS CRITERIA, BUT HAVE YOU HEARD OF HOUSING CONNECTOR? AND THROUGH THAT WE WERE ABLE TO HOUSE OVER FIVE PEOPLE JUST LAST YEAR ALONE, UH, THROUGH THAT PROGRAM.
ANY OTHER QUESTIONS? ANYBODY ON ONLINE? ANY QUESTIONS? MARCY? UM, SO YOU MENTIONED THIS IS A TWO YEAR PROGRAM AND THEN AT THE END OF TWO YEARS, THE PEOPLE DIDN'T ABLE TO JUST, UH, THE LANDLORD IS COMFORTABLE KEEPING 'EM IN THERE WITHOUT THE, THE WRAPPER, THE INSURANCE WRAP, WHATEVER.
AND SO DO YOU HAVE A, DO YOU TRACK THESE PEOPLE AFTERWARDS? DO YOU HAVE A SENSE OF HOW LONG THE, INCLUDING THE TWO YEAR PERIOD THAT THEY'RE IN, DO YOU HOW HOW MUCH LONGER THEY END UP STAYING IN IN THE UNIT? YEAH, SO ONE OF THE THINGS, I'LL SAY SOMETHING IS WHAT HOUSING CONNECTOR DOES IS ONE OF, WE'RE THE ONLY GROUPS OUT THERE THAT HAVE LIFE CYCLE OF, SO THESE HOUSING JOURNAL.
AND SO WE HAVE CENTRALIZED THE ENTIRE LIFE CYCLE AND TRACK EVERY TOUCH FUND.
SO EVERY TIME SOMEBODY IS BEHIND OUR RENT HAS A LEASE VIOLATION, WE HAVE ALL THAT DATA START BUILDING PROJECTIONS AND PREDICTIONS AROUND IT.
THE HYPOTHESIS IS THAT IF SOMEBODY STATELY HOUSED FOR TWO YEARS, THE LIKELIHOOD THAT THEN THEY'LL NEED TO RELY BACK ON US IS LOW.
AND THAT'S WHY WE HAVE TWO YEARS.
AND ALSO JUST REALISTICALLY, IT'S A HUGE ADMINISTRATIVE BURDEN TO KEEP TRACK AND BOTH AND ALL OVER.
UM, ONE OF THE THINGS RIGHT NOW I WE'RE DOING, UH, IS WE JUST, UH, SECURED PRETTY SIGNIFICANT INVESTMENT AROUND FOLLOW UP GROUP
AND SO TO ANSWER YOUR QUESTION DIRECTLY, WE DON'T HAVE THE RESULTS OF THAT RIGHT NOW, BUT WE'RE ACTUALLY GOING BE TRACKING ALL THE FAMILIES TO SAY, TO ANSWER THIS QUESTION, WHICH IS REALLY IMPORTANT TO ME JUST SO WHAT, I DON'T WANNA BE IN THE BUSINESS OF JUST HOUSING PEOPLE AND BEING LIKE POSSIBLY DOING A GREAT JOB, BUT ACTUALLY TO BE ABLE TO SAY LIKE, SO WHAT DID THIS ACTUALLY STICK WITH FOLKS? AND MY HOPE IS THAT IN THE NEXT SIX TO NINE MONTHS, WE WILL HAVE THAT UH, UH, RESEARCH AND SO THERE ARE THE FINDINGS AND THEN WE CAN SHARE THAT WITH THIS.
UM, AND THEN YOU MENTIONED YOU THE SAME PROGRAM YOU'VE BEEN DOING HERE IN NORTH TEXAS AND YOU'VE SERVED 800, I GUESS A FAMILY SO FAR.
AND THEN YOU MENTIONED SOME OTHER MARKETS TOO.
CAN YOU TALK ABOUT HOW BIG THE PROGRAMS ARE IN THESE OTHER MARKETS THAT YOU'VE PULLED OUT? YEAH, SO IN TOTAL WE ACTUALLY WERE, WE'VE HOUSED OVER 10,000 FOLKS SINCE WE STARTED FIVE YEARS AGO.
AND SO THE GROWTH HAS BEEN PRETTY, UH, SUBSTANTIAL AND I THINK DEMAND IS ALSO PRETTY SUBSTANTIAL RIGHT NOW.
UH, OUR LARGEST MARKETS ARE IN SEATTLE WHERE WE'VE JUST ENDED UP THE LONGEST, UH, FOLLOWED BY DENVER.
AND THEN DALLAS IS THE THIRD, UH, BIGGEST, UH, MARKET THAT WE HAVE AS FAR AS IMPACT TO, TO GROW THAT.
UM, I THINK FOR US IT'S A COMBINATION.
WHAT THAT'S IMPORTANT FOR US IS ALSO TO MAKE SURE THAT WE'RE BRINGING RESOURCES TO THE COMMUNITY.
AND SO EVERY MARKET THAT WE GO INTO, WE ACTUALLY BRING HALF A MILLION DOLLARS THAT WE RAISE NATIONALLY TO INVEST IN THE COMMUNITY BECAUSE I DON'T WANT TO COME TO A COMMUNITY WITH HANDS WIDE OPEN AND SAY LIKE, GIVE US RESOURCES TO BE ABLE TO DO THIS.
WE WANNA DEMONSTRATE THAT WE'RE BUYING IN.
SO ONE OF THE THINGS THAT'S ACTUALLY THAT WE DO IS EVERY MARKET THAT WE GO INTO, WE BRING HALF A MILLION DOLLARS OF SEED MONEY TO BE ABLE TO GET STARTED AND THEN DEMONSTRATE THE IMPACT AND TRY TO GET THOSE LOCAL BUY-IN AT THE LOCAL DOLLARS TO COME IN TO SUSTAIN LONG TERM.
SO YOUR SET UP, UM, SOUNDS LIKE YOU'VE GOT THIS NATIONAL INFRASTRUCTURE AND THEN YOU'VE SET UP, 'CAUSE I KNOW YOU WERE HERE A YEAR AGO, SO YOU'VE GOT AN OPERATION YOU'VE SEATED HERE IN NORTH TEXAS THAT COULD, YOU
[00:40:01]
KNOW, HANDLE THIS, THIS PROGRAM ROLLING THAT WE'VE GOT THE INFRASTRUCTURE IN PLACE TO DO IT.AND WE'VE RAISED, UH, JUST OVER $600,000 THIS YEAR ALONE FOR OUR, HERE IN NORTH TEXAS.
AND CAN YOU, DID YOU SAY YOU WERE IN AUSTIN OR IS THAT IN, UM, HOW, LIKE HOW ARE YOU FUNDING THESE PROGRAMS IN AUSTIN AND SEATTLE AND SOME OF EMERGENCIES GIVEN, LIKE, IS IT THE CITY OR LIKE WHO'S, WHO'S DOING THIS? YEAH, SO ABOUT 67% OF OUR FUNDING ENDS UP BEING GOVERNMENT FUNDING AND THE REST IS PRIVATE PHILANTHROPY.
IN EVERY MARKET WE HAVE, UH, LOCAL GOVERNMENT BUY-IN AND FUNDING.
UH, DALLAS WAS ACTUALLY PROBABLY THE LAST MARKET THAT, IT WAS THE LAST MARKET THAT WE FINALLY GOT INVESTMENT HERE, THE CITY, BUT IN EVERY MARKET, UH, IT'S USUALLY EITHER THE LOCAL CITY OR THE COUNTY THAT IS, UH, FUNDING THE EFFORTS IN ADDITION TO FLINT.
AND IS THERE A SPECIFIC AMOUNT THAT YOU'RE SEEKING TO GET FROM THE HFC TO INPUT IN? WHAT'S THAT AMOUNT THAT YOU'RE THINKING OF? YEAH, OUR, UM, OUR PROPOSAL WOULD BE, UH, $250,000, UH, TO BE ABLE TO SERVE 200 FOLKS AND NOT ONLY INCREASING THEIR ACCESS TO HOUSING, BUT ALSO THEN BEING ABLE TO SUPPORT THEM FOR THAT TWO YEARS TO MAINTAIN US.
AND SO YOU'RE WORKING WITH STAFF OR
I KNOW WE HAVE SOME NEWER BOARD MEMBERS AND JUST REFRESH OUR AS WHAT, WHAT'S AVAILABLE.
AND I KNOW THEIR, THEIR CAPABILITIES HAVE EXPANDED.
SO CERTAINLY SOMETHING THAT TALKED ABOUT.
AND AFTER
I ACTUALLY ALSO DEALT WITH THE ALL WITH MY CURRENT COMPANY THAT I WORK FOR AS WELL.
ONE QUESTION, YOU KNOW, SOMETIMES THERE CAN BE A HITCH WITH THE MANAGEMENT COMPANIES.
UH, DO YOU HAVE LIKE A FOR MANAGEMENT COMPANIES, ONES YOU'VE WORKED WITH IN TEXAS THAT ARE MORE OPEN TO THIS AND AT LEAST HAVE THE ABILITY TO KIND OF, BECAUSE THAT SEEMS TO BE WHERE KIND OF HAVE TO GET IN FRONT OF SOMETHING, UH, IN ORDER TO MAKE THIS HAPPEN IN ONE OF OUR PROPERTIES IS MAKE SURE MANAGEMENT HAS A BUY-OFF OR UNDERSTANDING THIS CONCEPT.
IF THAT'S SOMETHING YOU CAN MAYBE FORWARD TO AARON OR AT LEAST YEAH, I'M JUST MANAGEMENT COMPANY'S TOPS OF MIND.
THANKS SO MUCH FOR THE QUESTION.
I THINK, YOU KNOW, WHEN WE INITIALLY MET ABOUT A YEAR, A YEAR AGO, WE HAD ABOUT 40, UH, PROPERTY MANAGEMENT COMPANIES AND THEY WERE SMALLER LIKE, UH, LANDLORDS AND WE'VE SEEN A LOT OF GROWTH, RIGHT? THE MARKET HAS CHANGED A LOT AND WE DO HAVE MORE PROPERTY MANAGEMENT COMPANIES THAT ARE LARGER, SUCH AS LIKE ASSET LIVING.
AND YOUR
SO WE'RE GETTING THE BIGGER ONES NOW.
SO ASSET LIVING IN TEXAS, THEY UNDERSTAND THIS CONCEPT.
OUR PARTNER, WE PARTNERED AS A COMMUNITY PARTNER THIS POINT, NOT ANY PROBLEM.
WE DETECTED LAST YEAR PARTNER GRANTED THIS TROUBLE.
I THINK THAT'S, THAT'S THIS QUESTION THAT'S JUST, UH, HOW THE SET UP.
BUT WE'RE GONNA GIVE NEIL CALL SHY AGAIN.
I THINK AGAIN, THEY HAVE SOME MORE MAGIC COMPANIES, SEVERAL, THOSE THAT SHE MENTIONED.
WE CURRENTLY HAVE SOME OF OUR PROPERTIES, SO THAT'S THAT'S GOOD TOO.
SO, AND I THINK FOR MANAGER COMPANY, IT'S JUST GETTING THEIR ARM MY AROUND THAT COMMENT.
THIS CONCEPT IS JUST NOT FOR EVERYBODY
AND SO WE JUST NEED ONES THAT ARE IN INTO IT AND ONES THAT AREN'T AND THEN GET AHEAD OF IT.
WHEN IT COMES TO INSTALLING KNOW, SO MARKS QUESTION EARLIER, WE RECENTLY PARTNERED WITH BEUM AND DOMINION, WHICH WAS LIKE, OH YEAH, BIG ONES.
I THINK ONE OF THE THINGS I WAS JUST SAYING WITH THE, ON THE PROPERTY SIDE IS WE HAVE ONE OF OUR PRINCIPLES AT THE ORGANIZATION IS THAT WE SOLVE, UH, PROBLEMS FOR
LIKE AT THE CORE, WHAT WE DO IS WE'RE ACTUALLY TRYING TO SOLVE PROBLEMS FOR THEM, SO IT MAKES IT EASIER FOR THEM TO GET ADULTS.
SO TO YOUR POINT, I THINK SOME FOLKS HAVE TO GET OVER THIS HURDLE OF LIKE, WHY WOULD I DO THIS? YEAH.
AND WHAT'S THE CATCH? WE ALWAYS GET THIS, IT'S LIKE, WHY IS THIS FREE TEST? AND WE UNDERSTAND, BECAUSE THE VALUE PROPOSITION THAT'S BEING GENERATED FOR THE COMMUNITY, THE FOLKS IS SO HIGH.
UM, BUT GETTING OVER THAT HURDLE WILL TAKES TIME.
AND OFTEN WHAT THEY'RE LOOKING FOR IS THEY'RE LOOKING AT THEIR PEERS TO SAY WHO ELSE HAS SAID YES.
AND ONCE YOU GET THOSE EARLY ADOPTERS, THEY COME IN, UH, GOOD ACTUALLY, RYAN OR AARON MIGHT BE HB 21.
WAS THE PUBLIC BENEFIT TEST JUST THE RENT, KIND OF RENT REDUCTIONS? YES, THAT WAS IT.
SO THERE'S NO OTHER, YEAH, NOTHING, NOTHING ELSE COUNTS TO THE PUBLIC BENEFIT THAT, THAT THAT'S THAT ITERATIONS, BUT WELL, WELL, AND ONE THING I'LL JUST SAY THAT WE'RE, WHAT WE'RE BUILDING AND PART OF OUR THREE YEAR, UH, STRATEGY IS ONE OF THE THINGS WE'RE DOING IS BUILDING THIS INFRASTRUCTURE THAT IS ACTUALLY ABLE TO HAVE VISIBILITY OF BANDAID TO
[00:45:01]
TRACK THE PERFORMANCE OF ALL THE FOLKS THAT ARE BEING HOUSED THROUGHOUT, UH,SO ONE OF THE THINGS ACTUALLY WE'RE GOING TO BE DOING IN THE CITY OF SEATTLE IS ALL THE INVESTMENTS THAT THE CITY HAS IN PROPERTIES, WE'RE GONNA BE ABLE TO HAVE THIS ABILITY TO WHAT'S HAPPENING TO THE PERFORMANCE OF THOSE UNITS OF RESIDENTS AND THEN BE ABLE TO SHARE THAT DATA BACK WITH THE CITY AND THE COMMUNITY TO UNDERSTAND LIKE OUR INVESTMENTS, HAVING THE DESIRED OUTCOMES SO THAT THEN THEY CAN MAKE DECISIONS ON POLICY.
AND SO ONE OF THE THINGS THAT I HOPE WE CAN BUILD HERE AS WELL IS BE ABLE TO COME BACK TO YOU AS THIS PARTNERSHIP MOVES FORWARD AND SAY LIKE, HERE'S THE NUMBER OF FOLKS IN OUR HOUSE, HERE'S HOW THEY'RE DOING.
HERE ARE THE CHALLENGES WE'RE SEEING, HERE'S THE PERFORMANCE OF THESE UNITS AND THESE INVESTMENTS SO THAT YOU ALL IN THE CITY, MOST OF THEM HAVE MORE VISIBILITY BECAUSE OFTENTIMES RIGHT NOW IT'S A BIT OF A BLACK BOX.
AND SO WHAT IS ACTUALLY HAPPENING AT THESE PROPERTIES IN THE PERFORMANCE? WE SEE THE OCCUPANCY RATES, BUT ONCE YOU GET BELOW THAT, WHAT ARE THE ACTUAL OUTCOMES
UM, ANY OTHER COMMENTS OR QUESTIONS HERE IN THE ROOM ONLINE? UM, MY PERSONAL RECOMMENDATION WOULD BE, THIS IS ON
IT'S TO YOU, WE WORK WITH THEM ON A $250,000 BRAND HAS A PROPOSAL IN THE FUTURE, YOU KNOW, WHEN YOU'RE COMFORTABLE.
DID YOU HAVE, SO THAT WILL EVENT PLAN BRING BEFORE THE BOARD? YEAH, WE'LL, WE'LL, MORE BRAND TEAM.
UM, YOU KNOW, IT'S, IT'S OBVIOUSLY RIGHT ALONG WITH OUR, OUR MISSION, SO, UH, WE CAN TRY IT THERE, BUT I I THINK WE'LL, YOU KNOW, FINISH TIME.
YEAH, I MEAN, I THINK, YOU KNOW, FOR, YOU THINK PART OF THE LEGISLATIVE INTENT BEHIND THE, UH, WHOLE REASON HOUSING FINANCE CORPORATIONS WERE CREATED WAS TO BE THIS NIMBLE, FLEXIBLE ENTITY THAT MANDATES VERY BROADS TO, YOU KNOW, WORK ON THE AFFORDABLE HOUSING, UM, ISSUE.
AND SO I THINK, YOU KNOW, PERSONALLY, CREATIVE THINGS LIKE THIS, I THINK WE'RE FANTASTIC AND LIKE TO SEE US DOING, DOING MORE OR THESE THINGS, THIS IS WHAT WE WERE SET UP TO DO.
IT'S NOT JUST DO, UH, YOU KNOW, BIOTECH DEALS, FIVE TECH DEALS ARE GREAT PEOPLE ON DOING THOSE, BUT, BUT, UH, YEAH, YOU KNOW, THE AFFORDABLE HOUSING PROGRAM, I BELIEVE, I MEAN HOUSING ISSUE IS IMPORTANT AND, AND MORE TOOLS THAT WE COULD USE TO ADDRESS VARIOUS, UM, ANGLES, THINK THE BETTER.
WELL, UM, THAT THERE'S NO MORE QUESTIONS.
THANK YOU VERY MUCH FOR, THANKS FOR COMING HERE TO DALLAS TO VISIT US.
HOPE YOU COME BACK AGAIN AND SEE YOU TALK SOON.
UM, WELL, NICK, WE'RE NOW GOING TO MOVE TO, UM, AGENDA ITEM NUMBER SIX, WHICH IS REVIEW AND DISCUSSION.
THE SHARED SERVICES AGREEMENT BETWEEN THE CORPORATION AND DALLAS PUBLIC FACILITY CORPORATION FOR MANAGEMENT, ADMINISTRATIVE, OPERATIONAL, AND OR OTHER SERVICES.
UH, FOR THIS AGENDA ITEM, UM, I'M GOING TO MOVE FOR THE BOARD TO CONVENE AN EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.074 PERSONNEL MATTERS TO DELIBERATE THE DUTIES OF THE GENERAL MANAGER AND OR TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071 CONSULTATION WITH ATTORNEY FOR THE CORPORATION TO SEEK THE ADVICE OF ITS ATTORNEY ABOUT A MANNER MATTER ON WHICH THE DUTY OF THE ATTORNEY TO THE GOVERNMENTAL BODY UNDER TEXAS DISCIPLINARY RULES PROFESSIONAL CONDUCT THE STATE PART OF TEXAS CLEARLY LIST WITH THE TEXAS OPEN MEETING ACT.
CHAPTER 5 5 1 TEXAS GOVERNMENT CODE.
UH, I'LL NEED A, UH, UH, MOTION.
I NEED A SECOND THAT, SO DO I HAVE A SECOND? SECOND FOR, OKAY.
CAN YOU ANNOUNCE ALL THOSE ONLINE? WE'LL NEED TO EXIT OUT OF THIS WEBEX.
SO YES, SO EVERYBODY ONLINE GONNA NEED TO LOG OFF AND LOG INTO THE OTHER LINK THAT WAS SENT TO THEM, UH, SOPHIA SENT.
IT LOOKS LIKE EVERYBODY'S DOING THAT, SO YEAH, THEN WE'LL COME BACK ON.
UM, WE CONCLUDED THE, UH, EXECUTIVE SESSION AT, UH, 1:28 PM THERE'S NO, NO ACTION STAKING.
UH, WE'RE NOW MOVING ON TO, UH, AGENDA ITEM NUMBER EIGHT, WHICH IS REVIEW AND DISCUSSION OF DHFC TREASURER'S REPORT FOR THE SIX MONTH PERIOD, ENDING ON JUNE 30TH, 2025.
[00:50:01]
YES, THANK YOU.IS SHANNON STILL ON? OH, SHANNON, THERE YOU ARE.
CAN YOU GO THROUGH THIS QUICKLY OR NOT THERE? I'M OKAY.
SO REALLY, UM, FOR THE SIX MONTHS, HALFWAY THROUGH THE YEAR, UH, CASH IS SITTING AT 20, UH, 21.2 MILLION AS OPPOSED TO 18 MILLION AT DECEMBER.
PRIMARY INCREASES DURING THE LAST THREE MONTHS IN PARTICULAR HAVE TO DO, UH, RIDGE 12 OVER 378 AND FEE FEES TO THREE AND RECEIVE, SO THAT BALANCE IS THERE.
THE TOTAL INCOME FOR JUNE 30TH, 2025 IS 3.3 MILLION.
AND, UH, YOUR EXPENSES WERE JUST, UH, 275,000.
AND YOUR NET CHANGE FOR THE SIX MONTHS ENDED JUNE 30TH IS $3,108,979, A VERY HEALTHY HALF A YEAR UNDER YOUR BELT QUESTIONS, I KNOW THIS HAS BEEN A LONG MEETING, SO I DIDN'T WANNA DRAW IT OUT.
UH, COULD YOU REPEAT THE REVENUE PLEASE? YOU WERE BREAKING IT UP.
WELL, CERTAINLY THE NEW, THE REVENUE FOR THESE SIX MONTHS, $3,384,126.
AND, UM, HAVE I, I KNOW I ASKED THIS BEFORE AND UH, I'VE FORGOTTEN THE ANSWER, BUT HAVE WE STARTED THE TECH POOL THING YET? IS THAT THEY FINALLY SENT US THOSE DOCUMENTS LIKE A WEEK AGO.
WE ARE NOW READY TO, UH,
AND SO WE'VE GOT LIKE 20, OVER $21 MILLION IN AS WILL THE SUBSTANTIAL MAJORITY OF THAT BE.
BUT I THINK THE WAY WE SET IT UP, THAT AGREEMENT WAS EVERYTHING BUT $2 MILLION I THINK WAS GONNA BE TRANSFERRED OPEN TO THAT, UH, ACCOUNT.
SO YOU ALL SEE 50 USE SOMEWHERE ELSE.
WE'LL HAVE OUR OPERATIONAL ACCOUNTS WITH THAT, UH, MONEY, BUT THE MAJORITY OF THAT MONEY WILL BE IN A, THAT MONEY MARKET ACCOUNT THAT'S ALSO EARNING INTEREST.
SO UNLESS WE NEED IT, WE'LL JUST MOVE IT OVER, BUT WE NEED TO MAKE IT PAYMENT.
AND WHO, WHO DID WE HAVE THE, UH, CA OR BANK RELATIONSHIP BOARD IS BANK FORTUNE BANK.
AND IS IT, IS MY RECOLLECTION CORRECT, WHEN THE MONEY WAS BEING MANAGED BY THE CITY TREASURER, IT WAS IN A D OF ACCOUNT, D OF A ACCOUNT WASN'T EARNING ANY INTEREST.
RIGHT? IT WAS THE BANK OF AMERICA.
AND, AND THE SERVICE WAS NOT RIGHT.
HOW IS THE SERVICE WITH NEW BANK SERVICE? THERE IS BASIC, ACTUALLY, UH, HAD A MEETING WITH ME LAST WEEK AS TO HOW THEY CAN SERVICE BETTER AND WE'RE GETTING ALL OUR OTHER, WE TALKED ABOUT THIS BEFORE, WE'RE SETTING UP OUR OTHER 40 ACCOUNTS TO CAPITALIZE ALL OF OUR ENTITIES.
THAT'S OBVIOUSLY A HUGE UNDERTAKING, BUT THOSE ARE READY, WE'RE MAKING SURE THAT THE COMMUNICATION AND THAT I GUESS THE, UH, FUNCTIONAL PROCESSES AS SEAMLESS AS POSSIBLE AND TEST THEM ALL UNDER OUR, YOU KNOW, MAKE SURE THEY CAN ALL GO UP TO THE RIGHT.
UM, BOOKS AND LAND LEASE INCOME, IS THAT LIKE REAL CASH, CASH FLOW SPLITS, LEASES, OR IS THERE NO, I THINK THOSE ARE, THOSE ARE SPREAD OUT.
SHANNON, I AM I WRONG IN SAYING THOSE LAND LEASE INCOME THAT'S ALL PREPAID, IT'S JUST, UM, FILLED OUT WHEN IT HITS RIGHT AT, AT THIS POINT THERE'S MINIMAL, YOU KNOW, EVEN THOUGH Y'ALL DONE SOME RECENT DEALS, UM, REQUIRING SOME CASH, THE, I THINK THE, THERE'S NOT REALLY ANY, I THINK YOU'VE GOT 578,000 THIS YEAR IS ATTRIBUTABLE TO ACTUAL CASH PROCEEDS THAT THE REMAIN.
AND SO THAT'S 578, UH, 1 MILLION JUST OVER A MILLION.
SO A LITTLE OVER HALF IS ACTUALLY CASH DUE TO SOME NEW DEALS.
JUST THE ANNUAL LEASE PAYMENTS THAT WERE RECEIVED ON KESSLER AND DOMAIN AT MIDTOWN.
HEY SHANNON, SORRY TO CIRCLE BACK TO REVENUE.
I CAN'T QUITE FIND 3.3 ON THE REPORT THAT I WAS GIVEN OUR STATE 3,000,038, JUST LOOKING AT THE RIGHT AND THEN
[00:55:01]
YOU ADD IN YOUR INVESTMENT INCOME OF THAT 346 0 70 TO GET TO THERE.AND SPEAKING OF INVESTMENT INCOME, JUST SO Y'ALL KNOW, YOU CAN SEE AGAIN, Y'ALL ARE, Y'ALL ARE MORE THAN PAYING FOR YOUR OPERATING EXPENSES, UM, THROUGHOUT THE YEAR WITH JUST THE EARNINGS ON THIS INVESTMENT INCOME 3 46 VERSUS THE 2 75.
SO YEAH, SO IT'S ABOUT 65,000 A MONTH, BUT JUST RIGHT.
UM, ANY OTHER QUESTIONS FOR SHANNON FOR HEARING? ALRIGHT, WE THANK YOU SHANNON.
UM, THANKS FOR DOING SUCH A GREAT JOB.
I MEAN, THIS IS SO MUCH BETTER THAN WHEN I FIRST JOINED THE, UH, BOARD AND EVERYTHING'S WE'RE, YOU KNOW, FEEL VERY COMFORTABLE WITH THIS AND IF ANYBODY EVER ASKS US HOW WE'RE YOU ING THINGS? YEAH, I WANNA SAY PUBLICLY SHANNON, IT'S GREAT.
YEAH, I'M VERY HAPPY WITH THAT.
UM, WE'LL NOW MOVE ON TO, UM, ITEM NUMBER, UH, NINE, WHICH IS REVIEW AND DISCUSSION OF THE CORPORATION'S PIPELINE REPORT AS OF AUGUST 12TH, 2025.
SO WE HAVEN'T CLOSED ANYTHING NEW.
UH, THERE ARE A FEW DEALS THAT WE WERE GOING TO CONSIDER FOR THIS MONTH'S MEETING FOR M BUT WEREN'T QUITE HAMMERED OUT YET.
THESE ARE THE LINCOLN AVENUE CAPITAL DEALS THEY SHOULD BE READY FOR NEXT MONTH.
UH, NEXT MONTH WE SHOULD ALSO BE, SEE I THINK WE'RE LIKE FOUR RIGHT NOW, INDUCEMENTS.
UM, SO WE'LL WE'LL SEE THOSE INDUCEMENTS FOR NEXT YEAR'S BOND CYCLE.
AND THERE'S PROBABLY A COUPLE MORE COME IN STR US FOR OCTOBER.
I'M ASSUMING, UH, I KNOW THE MANY INDUSTRY REACHED OUT TO ME YESTERDAY, THEY WANT TALK ABOUT IT, BUT IT'S DAY
BUT, UH, PRETTY HEALTHY PIPELINE.
WE HAVE A COUPLE RENOVATIONS THAT ARE, SHOULD BE CLOSING UP THOSE, UH, RENOVATIONS OVER THE NEXT QUARTER.
SO THOSE SHOULD BE GOOD TO PULL IT DOWN AND WE'RE EXCITED ABOUT THAT.
AND THEN AGAIN, JUST TRYING TO, TO WORK THROUGH THE REST OF OUR BOND
SO HOPEFULLY WE CAN GET TWO OR THREE MORE OF THOSE, UM, CLOSE BEFORE INTO THE YEAR.
IF NOT, YOU KNOW, KEEP 'EM IN THE FIVE BOX ON THE VIABLE QUESTION.
TERRA SOME, SOME NOTE BECAUSE I THOUGHT THAT WAS A STRAIGHT PARK.
IT SAYS 4% QUESTION, ARE WE FACING ANY REFI RISK? DO THEY HAVE A CONSTRUCTION LOAN THAT HAS GO TO PERM AND IS THERE EXPOSURE TO HB 21 BECAUSE OF THAT? WE CAN TALK OFFLINE, BUT THERE'S, THERE'S BEEN CONVERSATION WITH JAKE AS TO WHAT WE CAN DO HERE.
UH, YEAH, BUT WE'LL, WE'LL FIGURE IT OUT.
YOU, IT'S
THAT WAS A NON-TAX CREDIT DEAL.
WE KIND OF DID IT LIKE A WORKFORCE STRUCTURE, MORE OF A PFC TYPE OF STRUCTURE.
UH, BUT SINCE H HP ONE PASSED IN JUNE, NOW THEY ARE UNDER THIS UMBRELLA OF THE NON MYTECH DEAL.
SO THEY'RE COMING UP FOR A REFI AS THEY STABILIZATION AND THE REFI WILL TRIGGER AN IMMEDIATE, UH, CLAWBACK ON THOSE TAXES IF WE DON'T.
YEAH, AND BY THE WAY, THIS IS SOUTH DALLAS, SO THOSE RENTS ARE APARTMENT RENTS.
SO WHAT WE'RE GONNA HAVE TO DO IS REDUCE THOSE RENTS BY WHAT THE, UH, TAX ABATEMENT IS, RIGHT? WHICH IS GONNA REGULARLY REDUCE THE, UH, YOU KNOW, REVENUE AND INCOME AND THE ABILITY TO GET OUT OF CONSTRUCTION LOAN.
HOW BIG IS THAT LOAN? I'LL HAVE TO BE BACK SIX, 9 MILLION ON.
UM, WE HAVE ABILITY TO USE OUR CASH TO MAKE A LOAN IF WE WANTED TO.
I'M NOT SAYING WE SHOULD, HONESTLY, PROBABLY THE BEST WAY TO DEAL WITH THIS IS TO PROBABLY SELL IT TO THE BFC BECAUSE THEY'RE NOT SUBJECT, I MEAN SELL IN QUOTES, RIGHT? BUT JUST SO THEY CAN KEEP THEIR STRUCTURE, KEEP THE PROPERTY OPERATING AS IS WITHOUT THOSE ADDITIONAL, UM, YOU HAVE TO INCLUDE BONDS IN THAT SOMEHOW IT'S NOT GONNA WORK BECAUSE OF THE PFC REFORM.
HOWEVER, IF WE USE TAXES, EXEMPT BONDS, ALL THE REFORM TWO YEARS AGO DON'T MATTER.
SO THAT'S THE ONLY WAY IT'S GONNA WORK.
BUT SO HAVE SEEN IN THE, YOU KNOW, SINCE WE'RE ON ITS AGENDA ITEM
[01:00:01]
OF THE PIPELINE REVIEW, SO JUST KEEP IT ON TOPIC.I DON'T KNOW KNOW IF THERE'S SOME LAW FIRM HAS DONE ONE OR IF THERE'S SOME TRADE ASSOCIATION OR SOMETHING IN CIRCULATED, BUT WE HAVE SEVERAL WEEKS.
SO ACTUALLY MARCY IS WORKING ON A SUMMARY OF ALL OF THOSE.
SHE WANTS TO PRESENT WHO SHE
UM, ANY OTHER, UH, QUESTIONS OR COMMENTS ON THE, UH, PIPELINE REPORT? UM, ALL RIGHT.
UH, I AGENDA, I TEMP CALL IT IS, UH, 1:41 PM MEETING IS ADJOURNED.