* 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.
          [ Dallas Housing Finance Corporation on June 9, 2026.]
          [00:00:05]
          JACK MARSHY. 
          YES, MA'AM. 
          THERE WE GO. 
          SORRY, WE HAD YOU, YOU GUYS ON MUTE, BUT WE'RE DOING ROLL CALL. 
          OH, YEAH. 
          OKAY. 
          I'M HERE. 
          JACK, DIRECTOR HEIDI COLLINS. 
          HERE. 
          YOU DIRECTOR. 
          KEVIN HINTON. 
          PRESENT DIRECTOR LESLIE. 
          PRESENT. 
          PRESIDENT DAVID ELLIS. 
          PRESENT DIRECTOR CLIFF PRESENT. 
          DIRECTOR OLIVER ROBINSON. 
          DIRECTOR RYAN MOORE. 
          PRESENT. 
          TONY PAGE. 
          RESIDENT AND DIRECTOR SEAN. 
          AND WITH THAT, WE SURE. 
          OKAY. 
          ALL RIGHT. 
          LET'S JUST GO ON. 
          UH, PAULO COMMENT. 
          OH, WE'RE GONNA CUT ITEM THREE, PUBLIC COMMENTS ON AGENDA ITEMS, UH, FOUR THROUGH 11. 
          ARE THERE ANY PUBLIC COMMENTS? YEAH, CHECK. 
          OKAY. 
          WE'RE GONNA GO OFF SCRIPT A LITTLE BIT. 
          I'M JUST GONNA PASS THE FLOOR TO, UH, LESLIE. 
          SHE'S JUST GONNA MAKE A, A LITTLE INTRODUCTION FOR US OR A DIRECTOR. 
          SORRY. 
          I KNOW THIS POINT OF PERSONAL PRIVILEGE. 
          , I APPRECIATE YOU INDULGING ME. 
          I JUST WANTED TO INTRODUCE EVERYONE TO OUR SUMMER INTERN WITHIN THE SOUTH RHYTHM BUTLER. 
          SHE IS A SENIOR AT UNIVERSITY OF TEXAS AT ARLINGTON, UM, STUDYING BROADCASTING AND JOURNALISM, AND SHE'S HELPING OUR ORGANIZATION WITH SOCIAL MEDIA AND OUR, UM, OUR FIFTH ANNIVERSARY CAMPAIGN THIS YEAR. 
          UM, SO SUPER EXCITED TO HAVE HER, BUT REALLY WANTED TO HIGHLIGHT THE, THE DALLAS HOUSING COALITION. 
          THIS IS THEIR FIRST YEAR DUE A SUMMER INTERNSHIP PROGRAM TO, UM, MATCH HOUSING ORGANIZATIONS, UH, WITH INTERNS IN THE AREA. 
          AND SO FOR THOSE OF YOU WHO ARE IN THE HOUSING SPACE AND ARE INTERESTED IN HAVING AN INTERN, I FOR YOU TO DO IT NEXT YEAR, THERE WERE 30 ORGANIZATIONS INCLUDING HABITAT, UNITED BAY, MY LITTLE NONPROFIT, UH, AND OTHERS IN, UH, SO WE'RE HAVING THEM WITH US FOR THE SUMMER. 
          AWESOME. 
          THANK YOU. 
          WELCOME, BRENDA, YOU HAVE, UH, WAN ONLINE. 
          OKAY. 
          WONDERFUL. 
          OKAY. 
          WE HAVE, UH, A QUORUM. 
          ALL RIGHT. 
          SO LET'S GO. 
          ITEM NUMBER FOUR, APPROVAL OF MINUTES FOR THE MAY 12TH, 2000 THOUSAND 26, CITY OF DALLAS HOUSING FINANCE CORPORATION MEETING. 
          HAS EVERYONE REVIEWED THE MINUTES? AND DOES ANYONE HAVE ANY COMMENTS? UM, I HAVE COMMENTS. 
          DO WE NEED A MOTION FIRST TO, UH, UH, HAVE IT BEFORE THE AUDIT BEFORE MY COMMENTS? SOUNDS REASONABLE. 
          YOU WANNA MAKE, WANNA MAKE A I MOVE. 
          DIRECTOR MOORE. 
          GOT IT. 
          AND SO, WHO, JUST SECOND ME. 
          OKAY. 
          AND, UH, VICE PRESIDENT, UH, ALLEN. 
          JUST SECONDED. 
          SO, GO AHEAD. 
          UM, I HAVE ONE COMMENT. 
          I THINK THE TECHNICALLY WAY THE MEETINGS, UH, WENT LAST TIME WAS I OPENED THE MEETING YOU DID AND GOT HANDED OVER TO YOU AT SOME POINT. 
          SO I DON'T KNOW IF WE HAVE A, I THINK I NEED A, I LOOKED AT, I LOOKED AT THAT. 
          I THINK WE HAVE NEED THOSE TWO, UH, MY DUTIES NEXT TO MY NAME, UH, THAT CAME 'CAUSE I CAME LATE. 
          WE JUST GOTTA REFERENCED THAT. 
          UH, SECRETARY PAGE CONVENED THE MEETING AND I CAME IN, WHICH, WHICH AGENDA ITEM WAS, IT WAS DURING THE TORRINGTON FOR AT THE TAIL END. 
          SO I THINK I MADE THE VOTE. 
          LOOK AT THE VIDEO. 
          SO LET'S JUST KIND OF MAKE THAT ADJUSTMENT. 
          YOU ANY COMMENTS? ALL RIGHT. 
          JUST WITH THOSE EDITS. 
          ALL IN FAVOR? ALL IN FAVOR SAY AYE. 
          AYE. 
          AYE. 
          ALL IN. 
          OPPOSED? ALL PASSES. 
          THANK YOU VERY MUCH. 
          ALL RIGHT. 
          ITEM NUMBER FIVE, RESOLUTION RELATING TO RENEWAL OF THE CORPORATION'S PARTICIPATION IN THE SINGLE FAMILY HOME MORTGAGE PROGRAM. 
          CONSIDER ADOPT A RESOLUTION I APPROVING AN ASSIGNMENT AGREEMENT WITH THE THCA AUTHORIZING T-D-H-C-A TO ISSUED BONDS FOR THE PURCHASE OF OBTAINING FUNDS TO FINANCE HOME MORTGAGE LOANS FOR PERSONS OF LOW AND MODERATE INCOME. 
          AND B, CONSIDER AND ADOPT A RESOLUTION APPROVING APPLICATION, TEXAS BOND REVIEW BOARD FOR A SINGLE FAMILY PRIVATE ACTIVITY BOND ALLOCATION IN AN AMOUNT UP TO 65 MILLION AND APPROVING ALL OTHER MATTERS IN CONNECTION THEREWITH, RIGHT. 
          GENERAL MANAGER QUINTO. 
          [00:05:01]
YEAH. 
          SO JUST TO PREFACE THIS, WE'VE DONE THIS NOW FOR FOUR YEARS. 
          FOUR YEARS. 
          UH, WE WITH T-D-H-C-A, OR WE HAVE PARTNERED WITH THCA IN THE LAST SEVERAL YEARS, AND WE ASSIGNED A PORTION OF OUR VOLUME CAP TO THEM, AND, AND THEY IN TURN, UH, UTILIZE IT FOR A SINGLE FAMILY HOME MORTGAGE PROGRAM. 
          SO WE HAVE MR. SCOTT FLETCHER HERE WHO RUNS THIS PROGRAM, AND, UH, HE'S HERE TO KIND OF BRIEF US ON, ON HOW TO DO THAT. 
          SO TAKE IT AWAY. 
          SCOTT. 
          THANK YOU FOR COMING. 
          THANKS, ERIN. 
          UH, LORD, THANK YOU SO MUCH. 
          UH, MY NAME IS SCOTT BUTCHER. 
          I'M THE, UH, DEPUTY EXECUTIVE DIRECTOR OF HOUSING FINANCE FOR THE TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS. 
          UH, I REALLY WANNA THANK, THANK YOU. 
          PARTICIPATION IN THIS PROGRAM, UM, LOOKS ON A LOT LIKE THE 22 OF, UH, THAT DALLAS HAS PARTICIPATED IN, UH, EACH OF THOSE YEARS. 
          AND I KNOW MOST OF YOU'RE FAMILIAR WITH THE PROGRAM, THE RATIONALE BEHIND VOLUME CAP ASSIGNMENTS. 
          UH, BUT AS A BRIEF REFRESHER, UH, THE PARTNERSHIP PROGRAM, UH, ALLOWS, UH, DALLAS HOUSING FINANCES CORPORATION TO PUT ITS VOLUME SINGLE DOWN VOLUME CAP, UH, TO WORK GLOBALLY THROUGH, UH, TDHC, A STATEWIDE MORTGAGE FOR EVERY BOND PROGRAM AND OUR HOME OWNERSHIP PLATFORM. 
          UH, RATHER THAN ALLOWING THAT UNUSED VOLUME CAP TO BE REALLOCATED ELSEWHERE IN THE STATE, DALLAS CAN LEVERAGE, UH, DHCA ESTABLISHED INFRASTRUCTURE TO PROVIDE AFFORDABLE, UH, MORTGAGE FINANCING AND DOWN PAYMENT ASSISTANCE TO LOCAL HOME BUYERS, WHILE GENERATING AN ONGOING REVENUE STREAM FOR THE HC. 
          UH, T-D-H-C-A ADMINISTERS THE PROGRAM FROM END TO END, INCLUDING BOND ISSUANCE, COMPLIANCE, LENDER MANAGEMENT, UH, AND REPORTING, UH, CREATING NO OPERATIONAL BURDEN OR FINANCIAL LIABILITY FOR. 
          I'M GONNA BOUNCE FORWARD A COUPLE SLIDES HERE TO SLIDE FIVE. 
          UM, UH, AND THIS IS REALLY JUST KIND OF TALKING ABOUT THE SCALE. 
          UM, UH, OVER THE PAST YEAR, UH, OUR PROGRAM HAS, UH, SUPPORTED BOARDED ONE 3 BILLION IN HOME OWNERSHIP ACROSS THE STATE, UH, PROVIDING, UH, APPROXIMATELY 45 MILLION IN DOWN PAYMENT ASSISTANCE AND HELPING MORE 5,500 FAMILIES, UH, IN TEXAS PURCHASE HOMES. 
          UH, WE COME TO MARKET ABOUT FOR THREE OR FOUR TIMES A YEAR, UH, AND, UH, OUR BOND PROGRAMS ARE STRONG, UH, STRONG PARITY RATIOS, UH, AND WITH NEARLY 4 BILLION IN ASSETS IN HIGH INVESTMENT GRADE, UH, RATINGS, UH, FROM AND SP. 
          UM, BUT LOOKING SPECIFICALLY AT DALLAS, SINCE JANUARY, 2025, UM, ACTUALLY THIS IS 4 20 25, UH, WE DID 125, UH, LOANS IN TEXAS, OR IN, SORRY, IN DALLAS COUNTY. 
          THIS JURISDICTION, UH, REPRESENTING ABOUT 32 MILLION IN MORTGAGE FINANCING. 
          UM, AVERAGE BORROWER INCOME WAS AROUND 64,500, UH, DOLLARS A YEAR. 
          UM, AVERAGE PURCHASE PRICE HERE IS AROUND $270,000, UH, WHICH IS HIGHER THAN OUR, OUR AVERAGE, UH, BORROWER, ACTUALLY, WE'RE RIGHT AROUND 2 25, 2 30, TYPICALLY ACROSS THE STATE. 
          UH, AND NEARLY 80% OF THE BORROWERS, UH, THAT WE SERVED HERE IN DALLAS WERE, UH, UM, LAST YEAR. 
          UH, WE ORIGINATED, UM, AGAIN, ABOUT 32 MILLION IN LOANS IN DALLAS HFC JURISDICTION. 
          UM, UH, SINCE 2022, DALLAS, HFC HAS ASSIGNED $211 MILLION IN VOLUME CAP TO T-D-H-C-A TO DATE, UH, WE HAVE UTILIZED APPROXIMATELY 70% OF THOSE FUNDS, UM, AND WE ARE ONLY NOW BEGINNING TO LEND, UH, AGAINST LAST YEAR'S ASSESSMENT. 
          UM, NOT GONNA LIE, I'M NOT SATISFIED WITH THE CORRECTION LEVEL THAT WE'VE HAD HERE. 
          THAT'S ENTIRELY ON US. 
          UM, AND THAT SAID, UH, VOLUME CAP IS, UH, REMAINS AVAILABLE AND, AND, UH, HAS A THREE YEAR EXPIRATION DATE. 
          AND WE'VE BEEN, WE'VE BEEN MAKING SOME SIGNIFICANT INVESTMENTS TO IMPROVE THE UTILIZATION, WHICH WE'LL DISCUSS MORE IN A MOMENT. 
          UM, AS I'LL COVER SHORTLY, UH, TDHC IS SIGNIFICANT REVENUES AND RESOURCE SIGNIFICANT RESOURCES, EXCUSE ME, TO, UH, INCREASING LOAN PRODUCTION. 
          UM, AND, UM, YOU KNOW, IF WE WERE ABLE TO GET TO 65 MILLION, UH, FOR THIS YEAR, WE WOULD ANTICIPATE THERE'LL BE APPROXIMATELY 247 HOUSEHOLDS IN, IN DALLAS, UH, AND PROVIDE MORE THAN 2.2 MILLION IN DOWN PAYMENT ASSISTANCE. 
          UM, THE PARTNERSHIPS, UH, ARE TRULY, UH, THE LIFEBLOOD OF OUR, OF OUR PROGRAMS. UM, T-D-H-C-A, AS I SAID, ISSUES ABOUT, UH, UTILIZING ABOUT 1.3 BILLION A YEAR IN VOLUME CAP. 
          UH, OUR ANNUAL, UH, ASSIGNMENT OF VOLUME CAP, UH, IS AROUND 400 MILLION YEAR, I THINK 4 30, 4 30 MILLION THIS YEAR. 
          SO YOU CAN SEE THE IMPORTANCE OF HAVING THESE PARTNERSHIPS WITH AGENCIES ACROSS THE STATE. 
          UH, WE JUST WOULD NOT HAVE FUNDS AVAILABLE TO DO, UH, TO DO 
          [00:10:01]
WHAT WE DO. 
          UM, AND, UM, ELIGIBLE BORROWERS CAN ARE ABLE TO ACCESS THE LOW MARKET, UH, FIXED RATE MORTGAGE LOANS, DOWN PAYMENT ASSISTANCE UP TO 5%, AND, UH, MORTGAGE CREDIT CERTIFICATES, WHICH PROVIDE, UM, ONGOING FEDERAL TAX CREDIT. 
          UH, TOGETHER THESE TOOLS MAKE HOME OWNERSHIP MORE AFFORDABLE AND MORE SUSTAINABLE FOR FIRST TIME HOME BUYERS AND QUALIFIED VETERANS. 
          AND I WANNA SPEND A LITTLE BIT OF TIME, UH, FOCUSING ON THE, THE FOR MARKETING EFFORT. 
          IF YOU GO TO SLIDE 12, UH, SORRY, THAT'S CONFUSING, . 
          UM, SO WE'VE MADE A SIGNIFICANT INVESTMENT IN GROW, IN GROWING OUR, UH, UTILIZATION AND ENSURING THAT VOLUME CAP IS CONVERTED LOWS. 
          UH, WE'VE COMMITTED APPROXIMATELY $1 MILLION ANNUALLY, UH, TO MARKETING AND OUTREACH. 
          UH, WE'VE ENGAGED A PROFESSIONAL MARKETING FIRM. 
          UH, WE DID THAT ABOUT A YEAR AGO. 
          UM, AND WE'RE FINALLY STARTING TO SEE, STARTING TO SEE SOME FRUITS, UH, OF THAT INVESTMENT. 
          UM, WE'VE EXTENDED EXPANDED OUR INTERNAL MARKETING AND BUSINESS DEVELOPMENT TEAMS. UH, WE'VE LAUNCHED, UH, NEW TECHNOLOGY TOOLS, INCLUDING THE LENDER PORTAL, UH, TO IMPROVE LENDER ENGAGEMENT AND ENVIRON ACCESS. 
          AND IF WE COULD BORROW YOUR, UH, YOUR INTERN, UH, WE'LL BE . 
          WE ARE TRYING TO DO SOME, UH, SOME SOCIAL MEDIA, UM, OUTREACH AS WELL. 
          WE'VE GOT A PRETTY GOOD BUDGET FOR THAT, THAT, UM, BOTH IN DALLAS AND THE, UH, AREAS. 
          UM, THE, UH, UM, YOU KNOW, UH, STATEWIDE MARKETING, WE WANNA WORK DIRECTLY, UH, WITH DALLAS HC. 
          UM, AND WE TRY AND MAKE THIS AS HANDS OFF AS WE CAN, BUT WE ALSO RECOGNIZE NO ONE KNOWS YOUR COMMUNITY LIKE YOU DO. 
          UM, WE WANNA WORK, UH, HAND IN HAND WITH YOU TO DEVELOP, UH, TARGETED CO-BRANDED MARKETING CAMPAIGNS, LENDER OUTREACH, UH, REALTOR ENGAGEMENT, HOME BUYER EDUCATION EFFORTS, TAILORED SPECIFICALLY TO THE DALLAS MARKET. 
          UM, OUR OBJECTIVE IS SIMPLE. 
          WE JUST WANNA GENERATE GREATER AWARENESS, UH, UM, FIND MORE QUALIFIED BUYERS, INCREASE, UH, LENDER PARTICIPATION, AND ULTIMATELY, UH, REACH OUR GOAL OF HAVING, UH, MORE FAMILIES IN DALLAS, UH, ACHIEVING HOME OWNERSHIP. 
          UM, I'M GONNA BACKTRACK A LITTLE BIT. 
          UM, I'D LIKE TO HIGHLIGHT THIS SLIDE BECAUSE IT, IT ACTUALLY, UH, SHOWS WHO WE SERVE. 
          UM, FAMILIES BENEFITING THIS PROGRAM ARE REALLY THE PEOPLE WHO KEEP OUR COMMUNITIES RUNNING EVERY DAY. 
          UH, TEACHERS, NURSES, FIREFIGHTERS, POLICE OFFICERS, MEDICAL ASSISTANTS, LIBRARIANS, AND OTHER ESSENTIAL WORKERS. 
          UH, STATEWIDE, 86% OF TDHC IS BORROWERS ARE LESS THAN 80% OF THE AREA, AREA MEDIA INCOME, DEMONSTRATING THAT THESE RESOURCES ARE REACHING, UH, THE FAMILIES, UH, THEIR ACTIVITIES SERVED. 
          UH, AND THIS ONE IS ENTIRELY OPTIONAL. 
          UH, MOVING TO SLIDE, UH, 11, SORRY, , THAT'S ALL ON YOU HERE. 
          UH, BUT WE'VE FOUND THAT, UM, HFC, UH, GIFT FUNDS CAN MEANINGFULLY, UH, INCREASE PROGRAM, UH, PARTICIPATION, UH, CAPITAL AREA OF HFC IN THE, IN THE AUSTIN AREA. 
          OBVIOUSLY, UH, DESPITE OPERATING A VERY HIGH PRICED, UH, HOUSING MARKET, HAS HISTORICALLY PROVIDED ADDITIONAL GIFT, UH, GIFT FUNDS, AND, UH, CONSISTENTLY ACHIEVED, UH, INCREDIBLY STRONG PRODUCTION LEVELS. 
          WE'VE, UH, WE HAVE CONSISTENTLY, FULLY UTILIZ THROUGH THE, UH, UH, HC ASSIGNMENT PROGRAM. 
          I'VE GOT YOU ALL  SLIDE. 
          UM, AND, UH, THIS, THE REPORTING SLIDE. 
          UM, THE PARTNERSHIP, UM, ALSO PROVIDES A HIGH LEVEL OF TRANSPARENCY AND ACCOUNTABILITY. 
          UM, YOU'LL, YOU'LL RECEIVE A QUARTERLY, UH, REPORTING ON VOLUME CAP UNPRODUCTIVE GRAPHICS, ACTIVITY, AND FEES EARNED THROUGH THE PROGRAM. 
          UH, WE'VE ALSO ENHANCED THESE REPORTS TO MAKE THEM BOARD READY, UH, AND PROVIDE A CLEAR VIEW OF PROGRAM PERFORMANCE, COMMUNITY IMPACT IN CLOSING, UH, DEMAND FOR T DCAS. 
          HOME OWNERSHIP PROGRAMS, UH, GENUINELY CONTINUES TO EXCEED, UH, OUR VOLUME CAP BY, BY A LARGE MARGIN. 
          UH, THE PARTNERSHIP, UH, ALLOWED DALLAS TO KEEP IN BUYING PLATFORM LOCALLY, UH, EXPAND ACCESS TO AFFORDABLE HOME OWNERSHIP, GENERATE REVENUE FOR THE HFC LEVERAGE, THC STATEWIDE PLATFORM. 
          UM, I WANNA ANSWER ANY QUESTIONS YOU MAY HAVE, BUT I TRULY APPRECIATE, UH, YOU GUYS, UH, PUTTING ME ON THE AGENDA TODAY, UH, AND PARTICULAR TIME, AND, AND HAPPY TO ANSWER THE QUESTIONS. 
          QUESTIONS. 
          UM, YEAH, MR. FLETCHER, UH, THANKS FOR COMING UP DURING I MAKE THIS PRESENTATION, UM, REALLY LIKE THIS PROGRAM. 
          UM, I DON'T THINK I WAS, I THINK I WAS AT ABSENT BOARD MEETING LAST YEAR WHEN THIS CAME UP, BUT YEAR BEFORE, I THINK WE TOUCHED ON IT. 
          UM, AND I'VE SEEN IN THE NUMBERS NOW, IF I COMPARE THE 65 MILLION SINCE HERE WITH WHAT THE UTILIZATION HAS BEEN OVER THE LAST, UH, YEAR PLUS PERIOD, THERE'S A HUGE GAP THERE. 
          AND SO I WANNA UNDERSTAND, THIS IS 
          [00:15:01]
SOMETHING I BROUGHT UP TWO YEARS AGO, HOW, HOW WE CAN, UH, INCREASE UTILIZATION. 
          I SEE YOU SAYING THAT STATEWIDE DEMAND, UM, EXCEEDS THE ANNUAL BOND CAP ALLOCATION, BUT HERE IN DALLAS, FOR WHATEVER REASON, IT'S NOT. 
          CAN YOU, DO YOU HAVE ANY INSIGHT AS TO WHAT'S GOING ON HERE? AND, YOU KNOW, IT'S, I, I THINK IT'S WHAT WE HAVE FOUND, UM, YOU KNOW, WE WERE IN A PLACE WHERE, UH, WE HAD SUCH STRONG DEMAND THAT WE WERE JUST RUNNING, UM, WELL ABOVE ALL OF OUR, UH, UH, ALLOCATION. 
          WE WERE MAXING OUT WITH EVERYONE EVERY YEAR. 
          UM, AND THEN IN , UH, ELECTION YEAR, WE HAD, UH, HAD SOMETHING GOING ON WITH RATES. 
          WE HAD UNCERTAINTY ELECTION, WE HAD SOME 25  OVER, UH, A LOT OF UNCERTAINTY. 
          KIND OF WENT THROUGH THAT, UH, LATE MID TO LATE 24 INTO EARLY 25, I FEEL LIKE WE'VE TURNED THE CORNER DOWN. 
          UH, WE'RE STARTING TO SEE REALLY STRONG VOLUMES, UH, EXHIBIT EIGHT, UM, IN DALLAS, WE'VE DONE 30 . 
          UM, AND, UM, WE'RE SEEING THAT RAMP UP EVERY DAY. 
          BUT I THINK THE KEY, AND WHAT I, WHAT I REALLY HAVE MY HOME LEADERSHIP TEAM FOCUSED ON IN OUR MARKETING FOLKS IS, UM, WE WANNA CREATE THE, THE . 
          WE NEED A ADDITIONAL LENDER OPPORTUNITY IN THE DALLAS MARKET, ADDITIONAL OUTREACH TO REALTORS IN THE DALLAS MARKET, AND JUST REALLY MAKE SURE THAT WE'VE GOT THE AWARENESS OF THE PROGRAM, UH, PROGRAM. 
          AND SO THAT'S, UH, ON THE AGENDA OF MY HOME OWNERSHIP TEAM. 
          UM, AND WE REALLY DO ANTICIPATE WITH THE, WE'VE SEEN STRONGER VOLUMES ACROSS THE BOARD. 
          UM, UH, AND, UH, IT IS ME, THIS IS KIND ONE OF THE MARKETS THAT I FEEL LIKE WE SHOULD BE DOING SO MUCH MORE VOLUME, WE SHOULD BE HAVING SO MUCH MORE IMPACT, AND WE SHOULD BE RUNNING OUT OF FUNDS ON THE FIELD EVERY SINGLE YEAR. 
          SO I'VE GOT MY, MY HOME OWNERSHIP TEAM DOUBLING EFFORTS TO, TO DO THAT. 
          THE INVESTMENTS THAT WE'VE MADE IN MARKETING, UH, ARE START, LIKE I SAID, FINALLY STARTING TO SEE THOSE TAKE HOLD, UM, AND REALLY SAVE OUR VOLUME INCREASE, UH, ACROSS THE STATE. 
          BUT WE WANNA HAVE A DALLAS OPEN SEPARATE AS WELL. 
          AND, YOU KNOW, KIND OF ON, ON THAT POINT, UM, GIVEN THE FACT THAT YOU, THE FUNDS DEPLOYED, HAVE BEEN YOU PRESUMABLY SIGNIFICANTLY BELOW WHAT WE'VE BEEN, UM, YOU KNOW, KIND OF, UH, YOU REALLOCATING BACK TO, TO YOU GUYS, IS THERE, IS THERE ANY RECOURSE HERE? CAN WE DEPLOY THAT MONEY? OR IS THAT MONEY GOING ELSEWHERE IN THIS? IS IT, IS IT GOING OUTSIDE, YOU KNOW, WE'RE SENDING ON SIDE? IS IT GOING TO LAREDO OR, YOU KNOW, THAT'S A GREAT QUESTION. 
          SO, UM, UH, THE, THE STATE OF, OF TEXAS, GOING BACK TO THE 1986 AND FEDERAL TAX BOND FOR THE CREATION OF PRIVATE ACTIVITY, UH, VOLUME CAP, UM, OBVIOUSLY THE STATE OF TEXAS GETS A FAIRLY LARGE, UH, AMOUNT OF MONEY EACH YEAR IN MONEY CAP FROM THE FEDERAL GOVERNMENT. 
          UM, AND THEN THAT'S ALLOCATED, UM, UH, IT, UH, FOR THE SUB, THE SUBSE ONE IS MORTGAGE REVENUE BONDS. 
          UM, AND BASICALLY WHAT HAPPENS WITH THAT SUB STATEMENT, IF YOU DON'T RESERVE THAT, UM, IT WILL JUST GO INTO MM-HMM . 
          RIGHT? AND THE VOLUME CAP IS ACTUALLY GOOD FOR THREE YEARS. 
          SO IN RESERVING THAT VOLUME CAP, WE HAVE THREE YEARS TO SPEND IT. 
          WE ARE, WE'RE ALREADY SPENDING, UH, 20, I THINK WE'RE IN 24, UH, LATE 24, UH, VOLUME CAP ALREADY ON OUR, OUR VOLUME CAP WE THAT WE BUILT. 
          BUT WHAT WE DO WITH VOLUME CAP, WE BASICALLY JUST EARMARK IT. 
          SO WE, ON OUR RECORDS RIGHT NOW, WE SHOW YOU HAVE $211 MILLION THAT YOU'VE ALLOCATED TO US. 
          IF YOU DO ANOTHER ALLOCATION, WE'LL ADD THAT TO THAT. 
          UM, AND IF WE GET AHEAD OF THAT, WE CONTINUE TO MAKE LOANS IN DALLAS, WE DON'T LOOK AT EARMARKED, AND WE WILL TAKE, WE'LL MANAGE THE THREE YEAR, UH, RISK ON THAT, UM, BY USING IT ELSEWHERE. 
          BUT WE ALWAYS HAVE THAT EARMARKED TO GO BACK TO DALLAS. 
          SO WE'LL ALWAYS HAVE  FOR DALLAS. 
          OKAY. 
          SO WE'VE GOT THIS KIND OF LIKE THIS BUILDUP OF UNDERUTILIZED FUNDS. 
          AND SO IF YOU TAKE THAT AGAINST WHAT'S BEEN DEPLOYED OVER THE LAST 14, TWO MONTHS, IT SOUNDS LIKE IF WE WANT TO, YOU KNOW, IF WE'RE GOING TO USE THAT MONEY AND WE GOTTA LIKE REALLY, REALLY RAMP UP, UH, PRODUCTION HERE, AND LIKE HOW DO, HOW DO WE DO THAT? YEAH. 
          YOU KNOW, AND, AND IT, IT REALLY DOES COME DOWN TO, TO LENDER OUTREACH. 
          AND IT COMES OUT, IT COMES DOWN TO, UM, YOU KNOW, WE ARE, WE'RE CONTINUALLY MAKING PROGRAM ENHANCEMENTS. 
          UM, BUT AT THE END OF THE DAY, FOR ME, THIS IS REALLY, IT REALLY IS DRIVEN BY, UH, LENDER OUTREACH, HAVING PEOPLE BE ABLE, IT'S REALLY ABOUT AWARENESS. 
          UM, YOU KNOW, IF YOU THINK ABOUT WE'VE DONE 20 MILLION YEAR TO DATE, UM, THAT WAS AS OF CALL IT END OF MAY. 
          UM, YOU KNOW, WE'RE ON TRACK TO DO 40 TO 50 MILLION THIS YEAR, WHICH IS GETTING CLOSER TO THAT, THAT, THAT NUMBER. 
          BUT WITH THE ADDITIONAL, UH, MARKETING EFFORTS THAT WE'RE PUTTING IN PLACE, UM, I'M PRETTY CONFIDENT WE'RE GONNA BE ABLE 
          [00:20:01]
TO RAMP THAT UP. 
          UM, AND AGAIN, YOU KNOW, IT'S NOT LIKE, UM, IF YOU DON'T DO THE ASSIGNMENT OR SAY, YOU SAID WE'RE GONNA DO 40 THIS YEAR, THE 25 THAT YOU DID RESERVE FOR SINGLE FAMILY, UNLESS YOU'RE GONNA DO AN MCC PROGRAM, WE'LL HAVE YOUR OWN, UH, ONE PROGRAM. 
          UM, IT BASICALLY JUST GOES TO THE POOL, RIGHT? AT LEAST THIS WAY WE EARMARK THAT, THOSE DOLLARS FOR DALLAS, ONCE WE KIND OF CATCH UP, THEN WE MAKE SURE THOSE DOLLARS  HERE. 
          IS THIS UNDER UTILIZATION OF DALLAS SPECIFIC PROBLEM, OR IS THIS COMMON IN OTHER URBAN AREAS UP THE MARKET? UM, CHALLENGE, UM, YOU KNOW, WE SEE IT, UM, UH, YOU KNOW, THE, THE INTERESTING THING IS I LOOK AT THIS DATA, UM, YOU KNOW, $270,000, UM, THINK ABOUT AFFORDABILITY AND YOU THINK ABOUT THE PEOPLE THAT WE'RE SERVING. 
          UM, AND WE SEE THIS IN CERTAIN, UH, SUBURBS OF DALLAS AS WELL. 
          UH, WE SEE IT IN ARLINGTON, WE SEE IT, UM, IT'S IN, UH, AUSTIN AREA WHERE YOU JUST GET LOWER UTILIZATION RATES, PRIMARILY BECAUSE THERE'S FEWER PEOPLE THAT CAN ACTUALLY QUALIFY, UH, FOR HOME. 
          UM, AND THIS JUST AS MUCH AS, AS IMPORTANT AS I THINK THIS PROGRAM IS, IT ONLY MOVES THAT NEEDLE A LITTLE BIT. 
          IT'S, HOME OWNERSHIP IS STILL EXTREMELY CHALLENGING FOR A LOT OF FAMILIES. 
          UH, AND SO I THINK IT A LITTLE BIT HAS TO DO WITH THE OVERALL PRICING, UM, IN THE MARKETPLACE. 
          UM, OBVIOUSLY HIGHER DALLAS, HIGHER, UM, IN AUSTIN. 
          UM, BUT, UH, IT, TO ME, IT'S ALSO ABOUT OUR MARKETING EFFORT. 
          AND SO THERE IS NO REASON THAT WE CAN'T BE UTILIZING $65 MILLION A YEAR, A HUNDRED MILLION DOLLARS A YEAR, MAKING A HUNDRED MILLION DOLLARS A YEAR LOANS. 
          AND ABSOLUTELY. 
          SO WE'LL, WE'LL GET HERE. 
          THANKS. 
          WANNA GIVE OTHER PEOPLE OPPORTUNITY, ASK SOME QUESTIONS HERE? I, I WOULD, I WOULD JUST ADD, UH, AND SCOTT DOESN'T EVEN KNOW THIS, IT'S JUST ONE OF THE MANY PROJECTS WE HAVE GOING ON IN THE BACKGROUND AS WE STEP UP AND THIS, THIS TRAIN MOVING ON THE SAME TRACKS HERE. 
          UM, BUT WE ARE WORKING ON THE MARKETING PROGRAM FOR OUR ENTIRE CORPORATION, AND THIS IS SOMETHING THAT WE'VE, UH, CONTEMPLATED PUT IT ON OUR WEBSITE AND DO DOUBLING MORE EFFORTS TO PROMOTE OURSELVES MORE. 
          AND THIS IS PART OF IT. 
          SO HOPEFULLY WE CAN AGAIN, WORK TOGETHER ON THAT. 
          SO WHEN, WHEN YOU TALK ABOUT MARKETING, ARE YOU MARKETING TO LENDERS SO THAT THEY KNOW TO OFFER THE PROGRAM TO BUYERS? OR ARE YOU OFF MARKETING TO BUYERS SO THAT THEY KNOW THEY MIGHT QUALIFY TO OWN WHERE THEY OTHERWISE MIGHT NOT BE IN THE MARKET? SO IT'S A LITTLE BIT, IT'S A LITTLE BIT BOTH. 
          IF YOU KIND OF THINK ABOUT THE, THE, HOW WEIRD MARKETING DOLLARS ARE GONNA GO TO HARVEST ONE LENDER IS WORTH, UH, I MEAN, ONE LENDER IN YOUR PROGRAM IS WORTH REACHING OUT TO 50 BORROWERS. 
          UM, HAVING REALTORS LIKE REACHING OUT TO 20 BORROWERS. 
          AND SO, YOU KNOW, IF YOU REALLY WANNA INVEST OUR DOLLARS, UM, UH, RATHER THAN, UM, WITH THAT LENDER COMMUNITY, WITH THAT REALTOR COMMUNITY, WE DO HAVE SOME GENERAL AWARENESS, UM, ACTIVITIES THAT ARE GOING ON AS WELL. 
          UM, WE'RE ACTUALLY SPENDING ABOUT $40,000 A MONTH ON GOOGLE ADS TO TARGET END USER, UM, AS WELL. 
          UM, SO IT'S KIND OF ALL OF THE ABOVE. 
          UM, I THINK THAT WHEN WE LOOK AT THE BEST SPEND ON THOSE DOLLARS, IT'S PROBABLY IN THE LENDERS AND HAVING THAT LETTER AWARENESS, BECAUSE THEY MAY HAVE SOMEBODY THAT COMES AND SAID, AND THEY MAY SAY, OR THE REALTOR MAY PRESENT SOMEONE AND THEY'RE LIKE, THIS PERSON DOESN'T QUALIFY FOR THIS, BUT THEY WOULD QUALIFY FOR ONE. 
          UM, SO WHERE THEY WOULDN'T TRADITIONALLY QUALIFY HAVING THIS IN THEIR BACK POCKET, THEY SEE THOSE OPPORTUNITIES, UM, THAT THEY'LL PRESENT THEM AND UTILIZE. 
          YOU MENTIONED A PORTAL. 
          DO IF A REALTOR OR AN AGENT PUTS IN A PROFILE A BUYER, DOES IT SHOW UP AS AN OPPORTUNITY FOR THEM? OR IS IT SOMETHING THAT THEY HAVE TO KNOW AND THEY OFFERING? YEAH, SO, UM, WHAT WE HAVE IS, IT'S ON OUR WEBSITE. 
          UM, WE BUILT A PORTAL WHERE YOU CAN JUST SEE THAT MIGHT QUALIFY. 
          UM, SO PEOPLE CAN GO IN AND WE'RE TRYING TO LEAD PEOPLE TO THAT WEBSITE, UM, THROUGH OUR, UH, OUR, UH, SOCIAL MEDIA. 
          UM, WE HAVE, UH, ALSO CREATED PARTNERSHIPS WITH SEVERAL OF THE HFCS WHERE THEIR, OUR WEBSITES ARE LINKED. 
          UM, WE HAVE, UH, WE FILLED UP TEMPLATES, UM, THAT, UH, HFCS CAN PUT ONTO THEIR WEBSITES THAT WILL LINK BACK AND FORTH. 
          SO IF WE HAD SOME COME TO OUR WEBSITE OR DALLAS REFER 'EM TO DALLAS WEBSITE AND, AND REALTORS IN MOTHERS IN DALLAS. 
          SO IT REALLY TAKES IT, IT'S REALLY INTENDED TO TAKE IT FROM, HEY, AM I QUALIFIED? AND IF YOU ARE, THEN HERE'S THE LENDER IN YOUR AREA THAT THAT CAN REACH OUT TO THAT KNOWS THE PROGRAM, THAT CAN HELP YOU. 
          UM, SO I DON'T KNOW IF THAT ANSWERS YOUR QUESTION. 
          UH, THE PORTAL IS REALLY DRIVEN, UH, TOWARDS, UH, UH, POTENTIAL BORROWERS. 
          UM, AND, AND THEN IT REFERS THEM TO, TO LENDERS, UM, AND REALTORS, UH, YOU KNOW, WE'VE GOT SEPARATE OUTREACH DO WITH REALTORS AND, UH, SO WE'RE, 
          [00:25:01]
WE'RE, AND WE'RE ALWAYS UP IN FRONT. 
          YES. 
          MY TEAM IS, UH, WILLING TO GET ON THE ROAD AT ANY TIME. 
          I HAVE ONE SUGGESTION AND ONE QUESTION. 
          SO ON THE MARKETING OUTREACH, I WOULD SAY, YOU KNOW, AS WE EXPLORE THIS MAYBE THE NORTH EFFORT, UH, I KNOW WE BOTH FROM CITY COUNCIL AND I THINK, UH, LOCAL LEADERSHIP REALLY PUSH FOR HOW DO WE GET, UM, OUR NEIGHBORS IN SOUTH OF WEST DALLAS TO HOME OWNERSHIP AND SINGLE FAMILY HOME OPPORTUNITIES. 
          UM, AND THERE ARE A LOT OF LOCAL GROUPS LIKE , PREDOMINANTLY BLACK REAL ESTATE, UM, ORGANIZATION, THE DALLAS NAACP, A CP, COLLECTIVELY, THEY PUT ON AN ANNUAL HOUSING SUMMIT. 
          IT IS ALMOST ALL REALTORS AND SMALL LENDERS IN THOSE COMMUNITIES THAT I THINK ARE THE RIGHT PEOPLE TO GET THIS INFORMATION INTO THE COMMUNITY. 
          YOU HAVE, UH, SOUTHEAST, UH, CHAMBER OF COMMERCE, UH, PLEASANT GROVE AREA, UM, AND, AND THEY ARE, UH, UH, PREDOMINANTLY SAME THING LIKE REAL ESTATE PROFESSIONALS, UH, BANKING PROFESSIONALS, THEY MEET AT DALLAS COLLEGE. 
          UM, AND SO THERE'S GROUPS LIKE THAT THAT I THINK, UH, YOU GUYS WOULD NECESSARILY KNOW ABOUT, UM, WITHOUT WORKING WITH, UH, OUR STAFF OR, OR OTHER MEMBERS THAT ARE PROBABLY MORE FAMILIAR WITH GROUPS IN THEIR DISTRICTS, BUT JUST ENCOURAGE YOU TO KIND OF GET TO SOME OF THOSE LOCAL, UM, REAL ESTATE GROUPS AND LENDERS WHO REALLY HAVE THE BOOTS ON THE GROUND OR, YOU KNOW, VERSUS PEOPLE THAT MIGHT HAVE, YOU WOULD KNOW ABOUT LARGER LENDERS AND REAL ESTATE GROUPS. 
          UM, SO THAT'S A SUGGESTION. 
          AND THEN, BECAUSE I AM NEWER TO THE BOARD, I THINK I HEARD THIS IN AN INFORMAL DISCUSSION, UM, BUT I, I'M SORRY IF I MISSED THIS OR IT'S NOT TRUE. 
          MY QUESTION IS, IF, IF WE DON'T DO AN ALLOCATION, DO I UNDERSTAND IT CORRECTLY THAT THE DALLAS CITIZENS WOULDN'T BE ABLE TO APPLY WITH THE PROGRAM? WE HAVE TO PARTICIPATE IN COURT DALLAS BENEFIT, OR TELL ME ABOUT THAT. 
          NO, UM, WE WILL, WE MAKE LOANS. 
          UH, WE CHANGED THE PROGRAM QUITE A BIT, USED TO ISSUE BONDS IN AND MAKE THE LOANS UNTIL WE RAN OUT OF FUNDS, AND THEN WE TURNED THE PROGRAM OFF. 
          WE'VE CHANGED THAT. 
          WE ARE NOW CONTINUOUSLY LENDING, UH, WE DIDN'T WANT IT TO BE LUCK OF THE DRAWS FROM . 
          UM, I HAVE SAID THIS, UH, UH, AND IT DEFINITELY WASN'T CLEAR. 
          UM, AS LONG AS THERE IS A BORROWER WHO WANTS TO BORROW FUNDS THROUGH OUR PROGRAM, I DON'T CARE WHERE IN THE STATE OF TEXAS THEY ARE, IF THEY'RE QUALIFIED, UM, WE'LL LEND THEM MONEY FIND. 
          SO IF WE DID CATCH UP, RIGHT, WE, YOU GUYS DO THE 65 AND WE END UP, UH, BY THE MIDDLE OF NEXT YEAR WE'RE, WE'VE DONE ALL 275 THAT YOU'VE EVER ALLOCATED, THAT DOESN'T SAY GAME'S OVER, UH, WE'RE NOT GONNA MAKE THAT LOAN TO DALLAS. 
          WE'LL CONTINUE TO MAKE LOANS. 
          SO IT JUST, IT DOES, IT'S NOT, YOU NOT PARTICIPATING DOES NOT PREVENT US FROM MAKING MONTHS. 
          ABSOLUTELY. 
          THANK YOU FOR THAT. 
          NO, ERIC, YOU KNOW, ONE THING I'D LIKE, UM, SOUNDS LIKE WE'RE DOING, YOU'RE PROVIDING QUARTERLY REPORTS. 
          IF WE COULD PUT THESE ON THE BOARD, YOU KNOW, AGENDA LIKE ONCE A QUARTER, SO WE'LL STAY ON TOP OF IT. 
          AND SO WE WON'T JUST KIND OF LIKE COME AROUND NEXT YEAR, SAY, OH YEAH, WE TALKED ABOUT THIS A YEAR AGO. 
          UH, AND THEN, YOU KNOW, AND SEE, DEPENDING ON WHAT THE QUALITIES REPORTS ARE OR HOW THEY'RE SET UP, IT SOUNDS LIKE YOU'VE GOT THE ABILITY TO CUSTOM FORMATTING AND STUFF. 
          SO I'D BE INTERESTED IN THAT. 
          I WOULD BE, AND THEN ALSO LOOKING AT HOW WE CAN EITHER CO-BRAND THIS OR SOMEHOW BE WHERE, UH, AS AN HFC, WE GET CREDIT FOR BEING INVOLVED IN THIS BECAUSE IT'S, YOU KNOW, WE WERE AT THAT BEING WITH COUNCIL MEMBER BRILEY AND WE MENTIONED THIS AND HE WAS LIKE, WHAT? YOU GUYS ARE INVOLVED IN SINGLE FAMILY, YOU KNOW, YOU SHOULD REALLY GET THE WORD OUT. 
          I THINK, YOU KNOW, ALL THE COUNCIL MEMBERS, THIS IS LIKE SOMETHING WE CONTINUALLY HEAR IS HOW CAN WE HELP SINGLE FAMILY HOMEOWNERS? AND SO THIS IS GREAT PROGRAM. 
          WE'VE ALREADY GOT FILLING IT. 
          YEAH, I MEAN, I THINK YOU'RE RIGHT. 
          THE FACT THAT WE FACILITATED $50 MILLION TO , THAT'S A PRETTY SIGNIFICANT DEAL. 
          YEAH. 
          SO, UM, SO SOMETHING WE'RE WORKING ON, SO, AND I APPRECIATE YOU BRINGING THAT UP IN TERMS OF THE CUSTOMIZATION, UM, YOU KNOW, HOUSTON, UH, WE DO A HIGH LEVEL OF CUSTOMIZATION. 
          WE DO, UH, WE, WE GET A SPECIAL REQUEST FOR WHAT'S HAPPENED IN THIS PRECINCT AND WHAT'S HAPPENED IN THIS AREA. 
          SO TO WHATEVER LEVEL OF CUSTOMIZATION WOULD BE HELPFUL FOR YOU GUYS AND COUNSEL, WHATEVER YOU NEED, JUST LET US KNOW. 
          UH, THAT THAT MAN WILL DO IT. 
          , YEAH. 
          MEAN IT'S, THE THING THAT JUMPS OUT TO ME IS LIKE HAVING A SPIKE BE BEING ABLE TO SHOW BY COUNCIL DISTRICT, SO WE HAVE A SPECIFIC COUNCIL MEMBER. 
          WE CAN SAY YOU WANNA GO TO MEET WITH THEM, LIKE, THIS IS WHAT WE'VE BEEN DOING IN YOUR DISTRICT. 
          AND ASK THEM IF THERE'S ANYTHING YOU CAN DO THEY KNOW THAT THEY CAN DO TO HELP US, LIKE HELP OUT. 
          AND BEST, THANK YOU SO MUCH. 
          THANK 
          [00:30:01]
YOU ALL SO MUCH. 
          ANY OTHER COMMENTS ON THIS? A QUESTION ON THIS, JUST A COMMENT. 
          THE RESOLUTION WE'RE ABOUT TO VOTE ON SAYS THAT WE, WE'VE BEEN PRESENTED A FORM ASSIGNMENT AGREEMENT AND THAT'S BEEN EMAILED. 
          IT CAME FROM ME TO AARON JUST A LITTLE WHILE AGO. 
          SO EVERYONE DOES HAVE THAT TAKE WITH B SEEMS ALL FINE. 
          I'LL DROP IT IN THE, IN THE, UM, SHARED DRIVE. 
          YEAH. 
          AND TO ADD TO THAT, APOLOGIES FOR NOT HAVING THAT, UH, SO ACROSS THAT, BUT THIS AGREEMENT ISN'T MATERIAL DIFFERENT THAN THE GROUP IF THAT MATTERS TO ALL. 
          WOULD YOU AGREE WITH THAT? YEAH, I, I THINK UH, GEORGE IS HERE. 
          OH, GEORGE, SORRY. 
          IT DOESN'T CHANGE FROM YEAR TO YEAR. 
          IT DOESN'T REALLY CHANGE FROM HFC TO HFC. 
          IT'S UH, PRETTY STANDARDIZED AGREEMENT. 
          AND CLIFF, SORRY, YOU REVIEWED IT FOR IT SOUNDS LIKE, SO I JUST . 
          ALRIGHT, WELL I GUESS IF THERE'S NO OTHER COMMENTS, DO I, DO WE WANNA ENTERTAIN A MOTION? SO MOVED. 
          SECOND VICE PRESIDENT ALLEN MOVED. 
          AND SECRETARY. 
          PAGE SECOND. 
          ALRIGHT, JACKIE, WHY DON'T WE DO A ROLL CALL. 
          VOTE VICE PRESIDENT SEAN ALLEN, DIRECTOR WAN RUDOLPH, UH, WAN, YOU'RE ON MUTE. 
          DIRECTOR RUDOLPH, YOU'RE ON MUTE. 
          OKAY. 
          ALL RIGHT. 
          UH, TREASURER OF JACK MARSHALL C APPROVE DIRECTOR PATTY COLLINS, APPROVE DIRECTOR KEVIN HUON, APPROVED DIRECTOR LESLIE BRU, APPROVE PRESIDENT DAVID ELLIS, APPROVED DIRECTOR CLIFF REMAN, APPROVE DR. OLIVER ROBINSON, APPROVE DIRECTOR RYAN MOORE, APPROVE THE JURY. 
          TONY PAGE APPROVE. 
          ALRIGHT, THANKS SCOTT. 
          APPRECIATE IT SO MUCH. 
          THANK YOU. 
          ALL RIGHT, LET'S GO ON TO ITEM NUMBER SIX. 
          CONSIDER AND ADOPT AN INDUCEMENT RESOLUTION DECLARING AND INTENT TO ISSUE BONDS IN AGGREGATE PRINCIPLE AMOUNT NOT TO EXCEED 40 MILLION FOR A LOAN TO TEXAS OR EX DEBT 2027 LIMITED, OR A RELATED PERSON TO PROVIDE FINANCING FOR A MULTI-FAMILY RESIDENTIAL RENTAL DEVELOPMENT FOR PERSONS OF LOW AND MODERATE INCOMES. 
          BE KNOWN AS THE PEMBERTON, AND TO BE LOCATED AT OR ABOUT ONE ONE THREE ZERO ONE DENNIS ROAD, DALLAS TELEPHONE SEVEN FIVE TWO TWO NINE AUTHORIZING THE FILING OF AN APPLICATION FOR ALLOCATION OF PRIVATE ACTIVITY BONDS FROM THE TEXAS BOND REVIEW BOARD AND CONTAINING OTHER RELATED PROVISIONS. 
          AARON? THANK YOU, PRESIDENT. 
          SO WE HAVE HERE OUR, UH, ILLUSTRIOUS FRIENDS FROM FORMER GENERATION HOUSING NOW TITANIA. 
          YES, SIR. 
          UH, SO YEAH, WE, WE WORKED WITH THESE FOLKS A COUPLE TIMES, UH, SHILOH AND WESTMORELAND STATION, WEST WALNUT STATION, AND TENISON LOSS AS WELL. 
          UH, SO, UH, THEY ARE HERE TO PRESENT AN INDUCEMENT. 
          SO JUST TO REMIND ANY NEW BOARD MEMBERS, WE'RE NOT PROPOSING A PARTNERSHIP TODAY, THIS IS REALLY JUST A OPPORTUNITY FOR US TO SUPPORT THEIR APPLICATION TO THE STATE TO GO AND APPLY FOR BOX. 
          THE ONLY THING I WOULD MENTION, UH, IT'S HIGHLY LIKELY THEY'LL GET IT, SO YOU KNOW, IT WILL NOT BE COMING BACK AGAIN. 
          BUT IF YOU SEE THIS IS STILL COMING FIRST PART OF THE APPLE TO, YOU KNOW, THERE'S ANY MAJOR ISSUES, BRING 'EM UP NOW. 
          SO OUR, YOU KNOW, DEVELOPMENT PARTNER KNOWS HOW TO ADDRESS . 
          IF YOU ABSOLUTELY HATE THIS PROJECT, I THINK THEY WOULD LIKE TO KNOW WHY SO THAT THEY DON'T LIKE . 
          ABSOLUTELY. 
          THANK YOU ERIN. 
          THANK YOU. 
          BOARD MEMBERS. 
          UM, DO WANNA MAKE SURE , JACKIE, I THINK THIS ONE THAT'S FOR THE NEXT ONE. 
          COGNITIVE POINT. 
          THANKS. 
          OH, SORRY. 
          OH, NO WORRIES. 
          ALRIGHT, THANK YOU. 
          UH, WE'RE EXCITED TO BE HERE BEFORE YOU BOARD. 
          THANK YOU FOR ALLOWING US ON YOUR AGENDA TODAY. 
          [00:35:01]
UH, FIRST I'LL GIVE YOU A BRIEF OVERVIEW OF TITANIUM HOUSING. 
          SO WE'RE A LOCAL, HIGHLY EXPERIENCED DEVELOPER, OWNER AND ASSET WHO HAVE CONTRIBUTED TO OVER 1000 HIGH QUALITY AFFORDABLE UNITS IN THE CITY OF DALLAS. 
          UM, SINCE 2018, WE'VE LEVERAGED PARTNERSHIPS WITH THE CITY OF DALLAS HOUSING FINANCE CORPORATION AND UTILIZE A MIX OF CITY HOME, CDBG AND OTHER TYPES OF FEDERAL FUNDING. 
          SPECIALIZE IN COMPLEX HIGHER, UH, I'M SORRY, LATER FINANCING TRANSACTIONS INCLUDING 9% OF 4% MYTECH DEVELOPMENT, TAX CREDIT, TAX EXEMPT PRIVATE ACTIVITY, BONDS, GRANTS, PUBLIC PRIVATE PARTNERSHIPS. 
          UM, AS THEY MENTIONED, TITANIUM IS A SUCCESSOR TO THE SUCCESSFUL GENERATION HOUSING DEVELOPMENT LEGACY. 
          UM, ADRIAN IGL REMAINS THE LEAD PRINCIPAL, THE HEAD OF OPERATIONS, AND WE'RE COMMITTED TO UPHOLDING THE SAME STANDARDS, UM, AND EXPERTISE PROVIDED, UH, OVER THE PAST SIX TO SEVEN YEARS. 
          UH, NOT NOTABLE DEVELOPMENTS IN OUR CONSTRUCTION WERE COMPLETED BY THE PRINCIPALS OF OUR TEAM ARE STATES OF SHILOH STATION, STATES OF FERGUSON, TENON, HIGHLIGHT ILLINOIS, AND THE PEMBERTON WOULD MARK A SIXTH SUCH PROJECT WITH THE DHFC BOND IN AND PARTNERSHIP. 
          WE'LL JUMP IN QUICKLY TO THE UNIX. 
          SO THIS IS A TRULY MIXED INCOME DEVELOPMENT THAT WE'RE PROPOSING. 
          UH, A MI RANGES FROM 30% TO 70%, UH, WITH 10% OF THE UNITS SET ASIDE FROM MARKET RATE. 
          ALSO MIXING THE FLOOR PLANS WITH 36, 1 BEDROOM OF 24 2 BEDROOM, 23 BEDROOM FLOOR PLAN TYPES, SOME PROJECT OVERVIEWS. 
          SO THE COMMUNITY AMENITIES WE'RE PROPOSING. 
          ALL OF THE ITEMS WOULD NORMALLY INCLUDE A CLUBHOUSE AND COMMUNITY CENTER. 
          UH, 1200 SQUARE FOOT RESIDENT SERVICES SPACE WHERE WE LIKE TO BRING IN NONPROFITS TO OPERATE AND RUN. 
          WRAPAROUND RESIDENT SERVICES WILL ALSO INCLUDE ABOR STYLE POOL, BUSINESS CENTER, STATE-OF-THE-ART FITNESS CENTER, AND CONTROLLED ACCESS THROUGHOUT THE PROPERTY. 
          THESE PHOTOS ARE FROM  DEVELOPMENTS WE HAVE IN PLACE, BY THE WAY. 
          UM, AS FAR AS OUR UNIT, UNIT AMENITIES, WE WILL INCLUDE GRANITE COUNTERTOPS, PINT LIGHTING, HARDWOOD FLOORING, UH, COVER BALCONIES, SPACIOUS HARDWOOD CABINETRY, OPEN STYLE FLOOR PLANS, AND ENERGY STAR APPLIANCES. 
          SO THE SITE IS LOCATED IN COUNCIL DISTRICT SIX. 
          UH, WE'VE MET WITH COUNCIL MEMBER CENA AND GOT HER SUPPORT IN FLORIDA WITH OUR RESOLUTION OF NO OBJECTION FOR THE PROJECT. 
          UM, AND IT'S ALSO IN A REALLY, REALLY AWESOME AREA IN TERMS OF PROXIMITY TO PUBLIC AMENITIES. 
          FOR EXAMPLE, WE ARE LESS THAN A QUARTER MILE FROM THE MARCUS PARK, MARCUS ELEMENTARY SCHOOL, AND THE MARCUS RECREATIONAL CENTER. 
          WE'RE ALSO CLOSE TO LARGE RETAILERS SUCH AS CINEMA DEPOT, UH, AND THE BURLINGTON. 
          AND WE ALSO WITHIN HALF A MILE OF THE DART ROYAL LANE PARK AND RIDE STATION, REALLY EXCITED ABOUT IT GIVES OUR RESIDENTS TREMENDOUS OPPORTUNITY TO USE, UM, BIKE RAIL, PUBLIC TRANSIT, OR ACCESS THROUGHOUT . 
          UM, AS FAR AS THE NUMBER OF LITECH DEVELOPMENTS IN THIS DISTRICT AND IN THIS AREA, THERE'VE BEEN VERY FEW, UM, RECENTLY APPROVED DISRUPTION, UH, AFFORDABLE, TRULY AFFORDABLE DEVELOPMENTS THAT KIND OF CATER TO THE MISSING MIDDLE. 
          IN THIS AREA, WE THINK DUE TO THE NUMBER OF JOBS OF PROXIMITY TO SCHOOLS, GROCERY STORES AND TRANSIT, UH, WE'LL SET US UP FOR A VERY SUCCESSFUL DEVELOPMENT. 
          THIS IS JUST A QUICK SNAPSHOT OF OUR CENSUS TRACK SHOWING THE, UH, AREA OF HOUSEHOLD INCOME OF $56,000. 
          THE POVERTY RATE BELOW 20%, RIGHT ABOVE 16%. 
          AS FAR AS THE, UH, MARKET STUDY GOES, WE, WE HAVE ENGAGED A FULL MARKET STUDY, WHICH WE'LL HAVE BY THE END OF THE MONTH, BUT IN THE MEANTIME, WE HAVE RECEIVED SOME PRELIMINARY MARKET FEEDBACK. 
          UM, SPECIFICALLY WE'VE RECEIVED FEEDBACK ON ALL OF OUR, THOSE RENTS. 
          AND WE, WE SHOW THAT THE CAPTURE RATE FOR ALL OF OUR, UH, TARGETED COMMANDS IS BELOW THE 5% MARK THAT WE ALWAYS TRY TO HIT, WHICH SUGGEST A VERY STRONG DEMAND FOR AFFORDABLE UNITS IN THIS MARKET. 
          UM, AND WE CAN PROVIDE A FULL MARKET STUDY AT ANY POINT ONCE WE HAVE THAT. 
          [00:40:07]
AS FAR AS THE SITE DEVELOPMENT CONCEPT PLAN, UM, THIS IS OUR DESIGN AND OUR SITE PLAN. 
          IT'S A URBAN DESIGN. 
          UH, ZONING IS ALREADY IN PLACE, EXCUSE TO, IT'S THE CURRENT ZONING FOR THE PROPERTY. 
          AND WHAT WE'RE PROPOSING IS ONE FIVE STORY WOOD FRAME STRUCTURE ABOVE CONCRETE PODIUM PARK STRUCTURE. 
          UH, THE TOTAL UNIT COUNT WILL BE 180 UNITS. 
          AGAIN, THAT WILL INCLUDE A MIX OF ONE AND THREE BEDROOM FLOOR PLANTS. 
          WE WILL PROVIDE 216 PARKING SPACES OF WHICH 60 WILL BE SURFACE, AND 156 WILL BE PODIUM PARKING. 
          UH, THEN OF COURSE WE'LL HAVE OUR CENTER ON THE GROUND FLOOR COMMUNITY POOL ABOVE PODIUM AND STANDARD KITCHEN CENTER RESIDENCE SERVICES CENTER AS WELL. 
          UH, THIS IS ANOTHER, UH, SLIGHTLY BIGGER VIEW OF OUR RENDERING. 
          SO THIS IS A BUILDING TYPE THAT WE HAVE DESIGNED FOR. 
          WE ACTUALLY HAVE THIS BUILDING TYPE UNDER CONSTRUCTION CITY OF AUSTIN. 
          AND, UM, WE'RE VERY PROUD OF THE EXTERIOR FINISH. 
          THE, THE LOOK, I THINK WE ALWAYS WANNA BUILD SOMETHING THAT OUR RESIDENTS CAN TRULY BE PROUD TO LIVE AT. 
          I THINK WE'VE HIT THAT MARK ON THIS DEVELOPMENT. 
          AND LASTLY, JUST A QUICK OVERVIEW OF OUR SOURCES AND USES FOR THE DEVELOPMENT. 
          SO TOTAL DEVELOPMENT COST IS COMING IN RIGHT AT ABOUT 64 MILLION, 700,000 ROUGHLY. 
          OF THAT WE WILL, YOU KNOW, APPLY FOR OUR PERMANENT FINANCING IN THE AMOUNT OF ABOUT $25 MILLION. 
          WE DO HAVE AN APPLICATION INTO THE CITY OF DALLAS FOR ABOUT $8.8 MILLION FOR CITY LOAN, WHICH WILL MOST LIKELY BE A BIG HOME AND CG FUNDING, UH, TAX CREDIT EQUITY WILL AMOUNT TO ROUGHLY 22.4 BILLION OF THE TOTAL SOURCES. 
          AND OF COURSE, WE HAVE ALSO MALINS UPON GRANT PROCEEDS IN OUR SOURCES OF JUST OVER FOUR AND A HALF MILLION. 
          UM, AS FAR AS THE USES, OUR, OUR LAND ACQUISITION COSTS IS 2.7 MILLION. 
          CONSTRUCTION USES ARE ESTIMATED ABOUT 35 5 MILLION. 
          UM, AND THEN FINANCING AND CLOSING COSTS ARE ALL SHOWN BELOW THERE. 
          THEY'RE DEFINITELY EXPENSIVE, UH, BUT WE ARE ABLE TO MAKE THIS DEAL WORK REALLY WELL MODELED. 
          I THINK FOR NOW THAT'S, THAT'S ALL I HAVE FOR YOU GUYS. 
          I QUESTION ON THE SOURCES ARE, IS THERE NO DEFER DEFERMENT OF THE DEVELOPER GATE? THERE IS. 
          SO WE'RE CURRENTLY DEFERRING ABOUT 50% OF OUR DEVELOPER FEE. 
          UM, RIGHT NOW IT SHOWS THAT THAT'S PAID. 
          UM, YOU'RE RIGHT THOUGH. 
          AND OUR SOURCES, I THINK THAT THAT LINE ITEM HIT, I'M SORRY ABOUT THAT. 
          WE CAN ISSUE A NEW UPDATE FOR THAT. 
          THAT'S GONNA BE GREAT FOR ANYTHING THAT'S, CONGRATULATIONS. 
          JUST IN GENERAL, WE, UM, IT'S, IT'S VERY DIFFICULT. 
          YEAH, NO, I KNOW. 
          GET THERE AND WE ALWAYS TRY TO GET TO ABOUT 50%, RIGHT? SO IT'S 50%. 
          WE PUT IN AT LEAST 50% OF OUR FEE INTO EVERY DEVELOPMENT. 
          SO, SO IS THE DEVELOPER FEE YOU'RE SHOWING A, A PAYMENT OF A MILLION? 1 95? IS THAT HALF OH, THAT, THAT'S WHAT'S BEING USED DURING THE CONSTRUCTION PHASE, RIGHT? UHHUH? SO THAT'S JUST, OH, THERE IT IS. 
          THAT'S, I SEE IT. 
          I SEE IT THERE. 
          OKAY. 
          UM, SEE YOUR CONSTRUCTION COSTS GONNA BE ABOUT 360,000 PER PER UNIT, ROUGHLY. 
          THAT'S ROUGHLY CORRECT. 
          YEAH, WE WE'RE, UH, WE'RE ABOUT $200 PER NET VERTICAL SQUARE FOOT, WHICH, UH, IS IN LINE WITH ABOUT A FIVE, 10% CONTINGENCY ON WHAT WE'VE CONSTRUCTED BEFORE. 
          SO WE'RE GIVING OURSELVES THAT BUFFER, BUT WE'RE, YOU KNOW, WE LIKE TO STATE BETWEEN FIVE TO 10% FROM ACTUAL COSTS. 
          DOES, AND YOU'RE TALKING TO THE CITY ABOUT ROUGHLY A $9 MILLION GAP GAP FINANCING? THAT'S CORRECT. 
          AND, UM, YOU KNOW, WE'RE WORKING THROUGH SEEING IF THAT CAN BE REDUCED SLIGHTLY TO ACCOMMODATE SOME OF THEIR, THEIR LIMITS AND AVAILABLE FUNDING, FOR EXAMPLE, NEW RENTS OR POSTED 2026 TO T AND WE'RE GONNA SEE WHAT WE CAN DO TO REDUCE THAT GAP A LITTLE BIT. 
          UM, BUT OF COURSE IT ALL REALLY COMES DOWN TO TAX CREDIT EQUITY PRICING MM-HMM . 
          WHICH HAS BEEN, UH, YOU KNOW, IN A VAULT RECENTLY. 
          AND THEN WHAT'S YOUR, WHAT'S YOUR ASSUMPTION IN HERE? WE GOT 85 CENTS, WHICH IS, THAT'S ABOUT WHAT WE CLOSE OUR LAP, UH, PERMANENT FINANCING INTEREST RATE. 
          THIS IS OBVIOUSLY THE OTHER ITEM. 
          WE'VE, YOU KNOW, INTEREST RATES. 
          IF THEY COME DOWN HALF PERCENT, WE SEE THAT GAP SIGNIFICANTLY. 
          [00:45:04]
CAN YOU, UH, TELL ME A LITTLE BIT MORE ABOUT HOW YOU ALL ARRIVED AND YOUR, UH, YOUR MIX OF ONE, TWO OR THREE BEDROOMS, AND THEN HOW THAT INFORMS OR HOW YOUR RESEARCH HEALTH MARKET INFORM THOSE CHOICES? ABSOLUTELY. 
          YOU KNOW, IT'S ALWAYS A BALANCE BETWEEN TRYING TO GIVE AS MANY AFFORDABLE UNITS AS WE CAN. 
          AND INITIALLY WHEN WE PROPOSED THIS DEVELOPMENT TO THE COUNCIL MEMBER, WE HAD ABOUT 200 UNITS, BUT WE WERE VERY LIGHT ON OUR THREE BEDROOM FLOOR PLANS. 
          UM, COUNCIL MEMBER KINA MADE THE REQUEST THAT WE LOOK AT THREE BEDROOM UNITS. 
          SHE THOUGHT IN HER COUNCIL DISTRICT, UM, THERE'S ENOUGH FAMILIES TO SUPPORT LARGER UNITS, AND THAT WAS SOMETHING THAT WE UPDATED IN OUR PLANS IN GENERAL, WE ALWAYS LIKE TO INCLUDE, YOU KNOW, MOSTLY TWO BEDROOM UNITS BECAUSE WE SEE THE MARKET RECEIVES THOSE THE BEST IN TERMS OF FAMILIES HAVE ENOUGH SPACE TO ACTUALLY LIVE THERE AND HAVE A FAMILY. 
          UM, BUT THEY'RE NOT TOO SMALL AND, AND THEY CAN ACTUALLY AFFORD 'EM. 
          THREE BEDROOM UNITS ARE WHERE YOU, YOUR RENTS ARE GOING UP. 
          AND, YOU KNOW, I THINK FAMILIES, UM, THERE'S LESS FOLKS THAT PROBABLY QUALIFY FOR A THREE BEDROOM, UM, MINIMUM, IF THAT MAKES SENSE. 
          BUT THE OTHER CONCERN IS PARKING. 
          AND I THINK WE, YOU KNOW, WE NEED TO MAKE SURE WE HAVE ENOUGH APARTMENT SPACES AND DOING THE MORE THREE BEDROOMS AND TWO BEDROOMS THAT YOU DO, UM, WE DON'T WANT TO PUT OURSELVES IN A SITUATION WHERE WE'RE UNDER PART FOR THE SITE. 
          SO WE'VE MAXED THE OUT AS MUCH AS WE CAN TO BUILD, PROVIDE PARKING AND UNIT MIX THAT PROVIDES THE MOST BENEFIT FOR KIND OF THAT TWO BEDROOM, TWO BEDROOM, UH, FAMILIES. 
          AND SO YOU MENTIONED COUNSEL MENTIONED THAT A, THERE MIGHT BE A NEED MULTIFAMILY A THREE BEDROOM. 
          YES. 
          CORRECT. 
          DID Y'ALL NOT SENSE THAT BEFORE SHE SUGGESTED IT? OR HOW DID Y'ALL, I'M JUST TRYING TO UNDERSTAND HOW YOU SAY I, YEAH, WELL, INITIALLY WE HAD MOSTLY TWO BEDROOMS. WE HAD ABOUT 75% OF OUR DEVELOPMENT WAS TWO BEDROOMS, AND THAT ALLOWED US TO REQUEST A SMALLER GAP AND THE DEAL MORE FINANCIALLY DECENT GAP. 
          BUT HER FEEDBACK WAS THAT THREE BEDROOMS WERE VERY IMPORTANT, EXPLAINED TO HER, IT WILL RESULT IN A, IN A LOWER UNIT COUNT, LOWER TOTAL UNIT COUNT FOR THE DEVELOPMENT, AND THEREBY BE A SLIGHTLY LARGER GAP. 
          AND SHE FELT LIKE IT'S STILL IMPORTANT TO MAKE THAT CHANGE. 
          SO SHE FELT LIKE IT WAS IMPORTANT. 
          HOW DO YOU GUYS FEEL ABOUT THE VIABILITY OF IT? IT'LL ABSOLUTELY BE, I DON'T THINK WE'LL HAVE ANY ISSUES. 
          I THINK WE HAVE 23 BEDROOM UNITS, BUT WE WILL NOT HAVE ANY ISSUES GETTING THOSE FEES. 
          UM, IT'S JUST A MATTER OF, YOU KNOW, FOR 23 BEDROOM UNITS, YOU COULD HAVE BUILT, YOU KNOW, 28 2 BEDROOM UNITS. 
          SO WE'RE LOSING EIGHT TOTAL UNITS. 
          BUT, UM, AGAIN, I THINK CATERING TO THOSE FAMILIES WITH LARGER FAMILIES IS ALSO IMPORTANT. 
          JUST LOOKING AT A PRICE PER SCORE ON HOW YOU COULD RENT IT. 
          THE LARGER THE, YOU GET OUT THAT SPACE. 
          TRUTH THOUGH, IS WHAT, WHAT DOES THE NEIGHBORHOOD NEED AS YOU THINK, RIGHT? SO YOU CAN FORMAL CERTAIN NUMBER OF WHAT, WHAT, WHAT DOES A NA TRULY BE? AND AND I HOW THAT, THAT STUDIES BEEN DONE FOR THE CANCER PERSON. 
          RACISM, I KNOW THIS IS JUST AN INDUCEMENT, SO THIS IS MORE OF A PREVIEW OF WHAT SURE. 
          I'LL BE LOOKING AT LATER DOWN THE ROAD. 
          UH, BUT I'M THRILLED ABOUT THE SPOT. 
          UH, IT'S CLOSE ON A MAP TO THE DARK STATION, BUT IT'S ALSO GOING TO BE A JOURNEY TO BRIDGE THAT GAP IN BETWEEN. 
          THAT'S RIGHT. 
          AND SO I JUST WANNA ENCOURAGE Y'ALL TO REMEMBER THAT Y'ALL ARE REALLY SETTING THE STANDARD FOR WHAT THE NEIGHBORHOOD CAN LOOK LIKE. 
          I DON'T THINK THERE'S BEEN ANY NEW MULTIFAMILY, LIKE TWO, TWO AND A HALF DECADES. 
          AND SO IN TERMS OF MAKING DECISIONS THAT MIGHT LOOK ODD JUST ON THIS PROPERTY, YOU KNOW, SETTING THE SIDEWALKS BACK, GET THE UTILITY WIRED OUT OF THE WAY, IT'S SOMETHING THAT YOU'LL BE MOLDED OR OTHERS WILL MOLD AFTER YOU. 
          AND, UH, OBVIOUSLY YOU'LL GET TO KNOW THE NEIGHBORHOOD A LITTLE BIT BETTER AS YOU'RE DESIGNING THINGS. 
          I SAW THAT THERE WAS A DOG PARK RIGHT ON THE ROAD. 
          UH, IT'S A VERY BIG DOG NEIGHBORHOOD. 
          SO IN TERMS OF KEEPING THE COMMUNITY, YOU KNOW, QUIET AND ENJOYABLE, PUTTING DOGS RIGHT AGAINST OTHER DOGS MIGHT NOT BE THE BEST. 
          BUT AGAIN, JUST LITTLE THINGS THAT ABSOLUTELY , I GET THAT, BUT I'M EXCITED. 
          THANK YOU. 
          UM, YEAH, I, I REALLY LIKE THIS LOCATION AS WELL. 
          UM, I NOTICED IT'S WALKING DISTANCE TO A PARK REC CENTER JUST A COUPLE BLOCKS AWAY. 
          YES, 
          [00:50:01]
SIR. 
          SHARE THIS SAME CONCERN ABOUT YOU CAN BE ESTABLISHED AS PRECEDENT FOR THIS AREA THAT WE KIND OF CHANGES IN PULLING SIDEWALK BACK AND MAKING IT VERY WALKABLE. 
          BE GOOD. 
          UM, I ALSO WANNA POINT OUT, I CHECKED, UM, A COUPLE MINUTES AGO, I KNOW THERE'S THIS KIND OF ONGOING CONCERN ABOUT LOSING TAX REVENUE. 
          UM, I PULLED UP THE 25 YEAR TAX HISTORY OF THIS PROPERTY IS PAID VIRTUALLY NO TAXES FOR THE LAST 25 YEARS. 
          IT'S BEEN AN AM DISTANCE, AN AM BROWNFIELD SITE. 
          SO, YOU KNOW, IT'S LIKE I I THAT'S, I DON'T SEE ANY TAX IMPACT HERE, BUT WE'RE GETTING BEFORE BILL. 
          YEAH. 
          YOU KNOW, FOR THE TAX. 
          YES. 
          WHATEVER WE SEE THE FOREGONE TAXES TO BE. 
          I MEAN, YOU KNOW, IF IT WAS 25 YEARS, NOTHING'S BEEN DONE ON THIS SITE. 
          I THINK FOR US IT'S GONNA BE ANOTHER 25 YEARS. 
          SO ANY OTHER QUESTIONS, COMMENTS? UNIFICATIONS? ALL RIGHT, GO AHEAD. 
          ONE COMMENT FOR ME, REALLY UNRELATED THE SPECIFICS. 
          SO I SEE THE THIRD PARTY ASSET MANAGEMENT, COMP DEPART MANAGEMENT COMPANIES IN THE ASSET LIVING, OUR LAW PARTNERS PROVIDED SOME LEGAL SERVICES TO THEM. 
          SO I'M, I'M GONNA, I'M GONNA ABSTAIN FROM THIS AND I PROBABLY NEED TO GET THE CITY ATTORNEY ABOUT IT. 
          DOES THAT PRESENT A PROBLEM? DO I NEED TO RECUSE? IS IT A NON-ISSUE? I, I, I DON'T PERSONALLY DO, RIGHT. 
          AND I, AND I WON'T. 
          I THINK IF YOU REFUSE YOURSELF, THERE'S NOT ISSUE. 
          YOU DON'T SEND ME PERSONALLY. 
          YES. 
          CITY ATTORNEYS RIGHT THERE. 
          THIS IS OUR VIEW. 
          OH, OH, JASMINE. 
          OH, OKAY. 
          GREAT. 
          WE HAVE A TALK OUT THE YEAH, WE, I'LL JUST STAYING ON THIS ONE THEN. 
          LET'S CHAT. 
          PERFECT. 
          YOU GUYS ARE ALL PERFECTLY WHATSOEVER. 
          YOU JUST FEEL LIKE IT. 
          SO ALSO I THINK THE POINT THAT TONY RAISED IS SO IMPORTANT BECAUSE LIKE YOU SAID, IF THIS KEEPS TOO IMPORTANT, THIS GOES TO COUNCIL. 
          I JUST DON'T WANNA LOSE THAT POINT, UM, ON THE TAX REVENUE FROM THE LAST 25 YEARS. 
          SO WE JUST MAKE SURE AND INCORPORATE THAT WE COME BACK FOR MOU WHEN YOU, YOU GUYS GO, YOU KNOW, JUST EVERY TIME WE CAN MAKE THAT POINT ON OUR DEALS, I THINK WE NEED TO MAKE SURE IT'S INCORPORATED. 
          I DON'T WANNA FORGET THAT AS MR. YES, ABSOLUTELY. 
          OKAY. 
          DISCUSSION. 
          ALL RIGHT. 
          SHALL WE ENTERTAIN A MOTION? ALL RIGHT. 
          DIRECTOR ROBINSON HAS MOTION. 
          DO I HEAR A SECOND? SECOND. 
          ALL RIGHT. 
          DIRECTOR MORRIS, SECONDED. 
          UH, JACKIE, LET'S DO A ROLL CALL VOTE. 
          MR. PRESIDENT SEAN ALLEN. 
          IN FAVOR, DIRECTOR. 
          DIRECTOR DEWAN RUDOLPH IN FAVOR TREASURER JACK MARSHALL. 
          C IN FAVOR, DIRECTOR PATTY COLLINS. 
          IN FAVOR, DIRECTOR KEVIN HUNTON. 
          IN FAVOR, DIRECTOR LESLIE BRUIN FAVOR, PRESIDENT DAVID ELLIS. 
          IN FAVOR, DIRECTOR CLIFF FRIEDMAN, ABSTAIN, DIRECTOR OLIVER ROBINSON. 
          FAVOR, DIRECTOR RYAN MOORE FAVOR, SECRETARY TONY PAGE FAVOR AND DIRECTOR SEAN SADIE. 
          OKAY. 
          ALL RIGHT. 
          THANK YOU VERY MUCH. 
          A JOURNEY. 
          WHAT ARE WE ON HERE? SO ACTION ITEM SEVEN. 
          ALL RIGHT. 
          YEAH, CONSIDER AND ADOPT AN INDUCEMENT RESOLUTION DECLARING INTEND TO ISSUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED 26 MILLION FOR A LOAN TO EC CARPENTER'S POINT LLC, OR A RELATED PERSON TO PROVIDE FINANCING FOR A SENIOR MULTI-FAMILY RESIDENTIAL RENTAL DEVELOPMENT FOR PERSONS OF LOW AND MODERATE INCOME, BE KNOWN AS CARPENTER'S POINT SENIOR LIVING AND BE LOCATED AT OR ABOUT 4 6 4 5 DALTON ROAD, DALLAS, TEXAS 7 5 2 2 3 AUTHORIZING THE FILING OF AN APPLICATION FOR ALLOCATION OF PRIVATE ACTIVITY BONDS WITH THE TEXAS BOND REVIEW BOARD AND CONTAINING OTHER RELATED IONS. 
          ERIC, FURTHER ANALYSIS. 
          SO WE HAVE HERE ETT REESE, WHO'S REPRESENTING THE CURRENT OWNERS. 
          THEY ARE GOING TO TRY TO CAPTURE A REESE SYNDICATION OF BONDS FOR THIS PROJECT, THAT THERE'S A CURRENT ORDER ON THE PROJECT, IT'S EXPIRING, UM, AND THEY'RE AT SOME POINT DO A RENOVATION. 
          YES, THANK YOU SO MUCH FOR HAVING ME. 
          UM, YEAH, MY NAME IS ETT RES. 
          I LIVE IN ITIES. 
          AND THEN ONE MY COLLEAGUES, SO MAJOR LEE'S ALSO CALLING IN. 
          UM, BUT YEAH, WE ARE THE OWNERS, OPERATORS, 
          [00:55:01]
CARPENTER POINTS, VEGAS PROPERTY. 
          UM, A LITTLE BIT ABOUT US INVOLVED IS A VERTICALLY INTEGRATED MULTI-FAMILY REAL ESTATE ORGANIZATION. 
          UM, WE HAVE A FEW DIFFERENT LEGS. 
          WE HAVE, UM, AN OWNER AND OPERATING LEG, AND THEN WE ALSO HAVE, UH, PROPERTY MANAGEMENT. 
          AND SO WE SPECIALIZE IN  CERTIFICATION. 
          THAT'S ABOUT US. 
          WE HAVE 41,000 UNITS UNDER MANAGEMENT ACROSS 25 STATES. 
          UH, WE HAVE, IN TEXAS ALONE, WE HAVE 103 PROPERTIES UNDER MANAGEMENT, AND THAT'S ABOUT 10,000 UNITS. 
          AND THEN AS FAR AS PROPERTIES THAT WE OWN, WE HAVE, UM, OVER A HUNDRED, UM, ACROSS 17 DIFFERENT STATES. 
          AND THAT'S ABOUT 12, 13,000 UNITS. 
          AND THEN WE HAVE 20 SENIOR, OVER 20 SENIOR SPECIFIC PROPERTIES. 
          NEXT SLIDE. 
          SO OUR INVESTMENT TEAM WILL BE, UM, HEADING UP THIS RECENT SYNDICATION. 
          AND WE HAVE, UM, OUR DEVELOPMENT TEAM HAS EXTENSIVE EXPERIENCE WITH, UM, 4% RECENT SYNDICATIONS AND ESPECIALLY, UM, A LOT OF EXPERIENCE IN TEXAS OVER THE PAST SEVERAL YEARS. 
          WE'VE DONE SEVERAL IN TEXAS. 
          WE'VE DONE SO FORT WORTH, UM, THE WOODLANDS, AUSTIN, SAN MARCOS, EL PA, HOUSTON, AND, AND ALSO GROUND WORKING ON ONE. 
          EXCELLENT. 
          UM, LIGHTSTONE CONSTRUCTION. 
          THEY WILL BE WORKING ALONGSIDE US FOR THIS REHAB. 
          UM, THEY ARE OUR PREFERRED PARTNER AND THEY'RE BASED OUTTA HOUSTON. 
          UM, AND THEY HAVE EXTENSIVE EXPERIENCE WITH, UM, BI AND AFFORD, UM, HOUSING PROJECTS. 
          AND THEN THEY ALSO HAVE A SENSE OF EXPERIENCE IN, UM, IN PLACE REHABS AND IN PLACE REHAB. 
          AND WE'RE ALSO WORKING WITH DNA WORKSHOP. 
          THEY'RE OUR ARCHITECT AND THEY'RE BASED OUT OF DALLAS. 
          UM, NOT TOO FAR FROM HERE. 
          UM, AND LIITE AND AFFORDABLE HOUSE, IT'S KIND OF THEIR BREAD AND BUTTER AS WELL. 
          A LITTLE BIT ABOUT THE PROJECT AND THE PROPERTY. 
          UM, THIS IS A 150 UNIT AFFORDABLE SENIOR HOUSING DEVELOPMENT. 
          UM, IT WAS BUILT IN 2010. 
          UM, WE ACQUIRED IT IN 2023. 
          UM, BUT THE PROPERTY CONSISTS OF A SINGLE APARTMENT BUILDING, A LITTLE OVER, UM, FOUR ACRES LAND. 
          AND, UM, IT IS LIMITED TO RESIDENCE AGE 55 AND BOULDER. 
          IT'S GOT A TON OF COMMUNITY AMENITIES. 
          IT'S GOT ONSITE MANAGEMENT MAINTENANCE, IT'S GOT A FITNESS CENTER, IT'S GOT A BEAUTY AND BARBER SALON, UM, A LIBRARY. 
          WITHIN THE LIBRARY. 
          THERE'S A BUSINESS CENTER, UM, THE CLUBHOUSE AND COMMUNITY KITCHEN. 
          UM, WE HAVE ELEVATORS, BARBECUE, PICNIC AREA PLACEBOS. 
          WE HAVE, UM, CONTROLLED ACCESS TO THE PROPERTY, UH, LAUNDRY FACILITIES AND COMMUNITY GARDEN. 
          AND THEN WITHIN THE UNITS WE HAVE, UM, JUST STANDARD AMENITIES, UM, MICRO REFRIGERATORS, WASHER AND JAR HOOKUPS, UM, MICROWAVES, CEILING FANS, AND PATIO SA LITTLE BIT MORE ABOUT THE PROJECT. 
          UM, GONNA DIVE INTO SOME OF THE AFFORDABILITY RESTRICTIONS. 
          UM, WE'LL HAVE A NEW L PLACED AT CLOSING, SO IT'LL BE A 15 YEAR INITIAL, UM, USE PERIOD PLUS A 15 YEAR EXTENDED USE PERIOD. 
          AND THEN THERE IS AN EXISTING, UM, LRA AND THAT'LL RUN CONCURRENTLY THROUGH THE ORIGINAL COMPLIANCE PERIOD UTILITY IT EXPIRES. 
          AND THE CURRENT LRA, UM, SET ASIDES, THEY'RE AT 30, 50 AND 60% AMMI. 
          BUT WE, UM, A PARTNER WITH DALLAS HOUSING AUTHORITY ON THIS PROJECT. 
          WE ARE A HUNDRED PERCENT BY BASED VOUCHERS AND, UH, RENTS ARE BASED ON THE APPLICABLE PRODUCT BASED VOUCHER STANDARDS, UH, NOT THE AMI BASED STANDARDS. 
          AND THEN WE ALSO HAVE, UM, AN ONSITE RESIDENT SERVICES COORDINATOR AND SHE PROVIDES, UM, JUST ONGOING SUPPORT AND PROGRAMMING FOR THE RESIDENTS. 
          UM, SHE COORDINATES SOCIAL COMMUNITY EVENTS AND ALSO HELPS WITH LIKE HEALTHCARE, UH, RELATED MATTERS. 
          UM, MAKES LOT, UH, A LITTLE BIT ABOUT UNIT MIX AND RENTS. 
          UH, IT'S MAINLY ONE BEDROOMS. UH, SO WE HAVE A HUNDRED TWENTY SIX ONE BEDROOM BATHS. 
          AND THEN THOSE CONTRACT RENTS WITH DHA ARE AT 1410. 
          AND THEN WE HAVE 24 2 BED, TWO BATHS IN THAT CONTRACT AROUND DHA IS 1721. 
          AND THEN I GUESS TO HIT ON THAT, UM, I'M SURE Y'ALL ARE FAMILIAR WITH DHA, BUT DO THEY, YOU KNOW, UM, THOSE RENTS EVERY YEAR. 
          AND SO EVEN IF THOSE RENTS DO INCREASE IN THE FUTURE, UM, THE AMOUNT THAT THE TENANTS WILL BE PAYING WILL NOT INCREASE. 
          AND THEN AS FAR AS SITE LOCATION IN DETAILS, WE ARE LOCATED AT 4 6 4 5 DOLPHIN ROAD, AND THAT'S IN, UM, THAT'S IN DISTRICT SEVEN. 
          UM, WE HAVE TALKS WITH COUNCIL 
          [01:00:01]
MEMBER, UM, BASAL DOULA, AND THEN ALSO THE CHIEF OF STAFF, NATALIE. 
          WE'VE GOTTEN THEIR, UM, VERBAL CONFIRMATION THAT, OKAY, THIS PROJECT, AND WE ARE MORE SPECIFICALLY IN THE DOLPHIN HEIGHTS NEIGHBORHOOD, UH, JUST KIND OF IN THE SOUTH DALLAS FAIR PARK AREA, UM, EAST DOWNTOWN, EAST FAIR PARK, UH, IT FAR AS THE CENSUS TRACK POVERTY RATE, IT'S AT 18 7% ELIGIBLE, 22 4. 
          AND THEN, UM, UNEMPLOYMENT RATE IN THE AREA, 7.1% AND THEN NEARBY AMENITIES. 
          UM, THERE IS A, UH, LINE DUCK CRAFT RECREATION CENTER, UM, ABOUT 0.3 MILES SOUTH OF THE PROPERTY. 
          AND IT'S OTHER, UM, FOOD MARKS NEARBY, UM, WITH ACCESS TO HEALTHCARE DAILY CENTER, LESS THAN THREE MILES. 
          AND THERE'S ALSO A, UM, A CLINIC, UM, ABOUT THREE MILES SOUTH OF THE PROPERTY NEAR THAT REC CENTER. 
          AND WE ALSO HAVE, UM, NEARBY TRANSIT. 
          UM, WE HAVE THE DARK BUS SERVICE ON DOLPHIN ROADS. 
          IT'S JUST US FROM THE PROPERTY. 
          AND THERE'S A CLOSER SNAPSHOT OF THE, THE AREA AND THE PROPERTY, UM, WITHIN THE 7 5 2 2 3 ZIP CODE. 
          THERE ARE NO OTHER LITECH PROPERTIES. 
          UM, I GUESS AS FAR AS OTHER NEARBY LIFE TECH PROPERTIES, THERE ARE, UH, THERE IS THE FRAZIER FELLOWSHIP TOWN HOMES, WHICH IS OWNED BY DALLAS HOUSING AUTHORITY. 
          AND THAT'S, UM, JUST SOUTH OF OUR PROPERTY. 
          AND THAT'S ABOUT 300 UNITS. 
          AND THAT'S ALSO, UM, YEAH, LITE. 
          AND THERE'S ANOTHER ONE NEARBY CALLED SOUTHDALE, AND THAT'S LITE PROPERTY ABOUT, OH, LESS THAN TWO MILES SOUTH. 
          AND THEN THERE'S SOME, UM, MARKET RATE APARTMENTS WITHIN TWO MILES. 
          WE KIND OF PULL SOME OF THESE FROM THE . 
          THESE ARE ALL AVERAGE, UM, ONE BEDROOM RACE. 
          SO AS FAR AS THE, THE REHAB AND THE CONCEPT DESIGN, UM, WE'RE SUPER EXCITED FOR THIS REHAB. 
          UM, IT'S A GREAT PROPERTY AND, UM, OUR RESIDENTS VOICE EXPRESSION OF, UM, APPROVAL FOR THIS, WE'RE REALLY EXCITED, BUT THEY FOCUSING MAINLY ON UNIT INTERIOR. 
          SO WE'RE GONNA DO, UM, KITCHEN TO BATH REMODELS, UH, ALSO GONNA DO NEW, UH, EXTERIOR ENTRY DOORS AS WELL AT WINDOWS AND THEN DO FLOORING. 
          UM, THAT'LL BE TUBBY PEAK. 
          AND THEN ELECTRIC LIGHTING, UPDATED PLUMBING FIXTURES. 
          AND WE'RE GONNA BE DOING SOME ENERGY EFFICIENT HVAC SYSTEMS AND, UH, NEW WATER HEATERS. 
          AND THEN AS FAR AS RELOCATION PLAN, UM, LIKE I MENTIONED EARLIER, THIS WILL BE A TENANT IN PLACE HAVE, AND SO THERE WILL BE NO PERMANENT DISPLACEMENT, UM, FROM THE REHABS. 
          UM, IT WILL BE, UM, JUST KIND OF A UNIT BY UNIT FOUR BY FOUR REHAB. 
          AND THE, THE WORK WILL BE DONE DURING THE DAY AROUND EIGHT TO FIVE, AND THE UNITS RETURN DELIVERABLE CONDITIONS BY THE END OF THE DAY. 
          AND IF FOR SOME REASON THEY'RE NOT, THEN WE WILL HAVE OFFSITE HOUSING PROVIDED, UM, TO OUR RESIDENTS AND MOST THEM. 
          AND THEN WHILE THE RENOVATIONS ARE GOING ON, YOU KNOW, WE HAVE PLENTY OF COMMUNITY AND COMMUNITY SPACE FOR THEM TO SPEND TIME AT. 
          WE'LL PROVIDE MEALS. 
          AND, UM, NEXT SLIDE, JUST A LITTLE BIT ABOUT OUR SOURCES AND USES. 
          AND, UM, THESE ARE, THESE ARE KIND OF CHANGING AND BEING MORE REFINED AS, UM, WE'RE RECEIVING, UM, YOU KNOW, UPDATED SCOPE OF WORKS AND THINGS LIKE THAT. 
          UM, BUT OUR FIRST MORTGAGE, THAT'LL BE A 30 FORWARD, THAT'S AROUND 22000004% TAX CREDIT EQUITY, UH, IT'S ABOUT 15, 16 MILLION RIGHT NOW. 
          UH, WE JUST LOWERED OUR SELLER NET, ACTUALLY, I THINK IT'S GONNA BE CLOSER TO 5 MILLION. 
          AND THEN OUR ACQUISITION BASE WILL BE, I THINK WE ALSO JUST LOWERED THAT TO ABOUT 25 MILLION IMPROVEMENTS WILL BE ABOUT 7 MILLION. 
          UM, COST OF ISSUANCE WILL BE 6 MILLION AND MISCELLANEOUS WILL BE DOWN SET. 
          LET'S THE IMPROVEMENT, WHAT'S THAT ON BASIS ON IMPROVEMENTS? THE IMPROVEMENTS IS THE REHAB, RIGHT? YES, THAT'S THE REHAB. 
          HOW MUCH IS THAT? UH, THAT IS ABOUT 53 UNITS I ASSUME. 
          AND SO THE ACQUISITION PRICE, SO THE PARTNERSHIP CURRENT IT ENTITY YOU HAVE CURRENTLY OWNS DEAL, RIGHT? YES. 
          OKAY. 
          SO YOU SELLING IT TO THE PARTNERSHIP FOR 26 MILLION AND IT HAS A NOTE OF 5 MILLION? YES, CORRECT. 
          OKAY. 
          WHEN DID YOU PURCHASE, WHEN DID YOUR AFFILIATED ENTITY PURCHASE THE ASSET? IN 2023, DECEMBER OF 2023 SALES PRICE, AT THAT TIME IT WAS 20 TO 21 MILLION. 
          OKAY. 
          BUT THIS, THE SELLER NOTE YOU REFER TO, IS THAT, IS THAT CURRENTLY OWED TO YOUR SELLER OR IS THAT BEING CREATED IN A, IN AN, IN, IN TRO THE, UH, TRANSFER? YEAH, THAT'S SOMETHING THAT WE'RE CREATED FOR THE INTER ENTITY TRANSFER. 
          AND IT AND, AND WHERE WILL THAT FIT IN THE CAPITAL STACK. 
          WHAT'S IT, 
          [01:05:01]
WHAT WILL IT BE SUPPORTING TO? UH, I THINK THAT'S S THINK MAJOR. 
          MY COLLEAGUE CAN ANSWER MORE. 
          HEY, HEY EVERYONE. 
          MA MAJORLY INVOLVED COMMUNITIES. 
          I, I WASN'T ABLE TO MAKE IT, BUT, UM, I THOUGHT I'D, I'D INTERJECT HERE. 
          SO, UH, BACK TO THE QUESTION. 
          UM, WE DID JUST RECEIVE AN UPDATED APPRAISAL. 
          UM, OUR LENDER, UH, FREDDIE LENDER ORDERED THAT IN COMPLIANCE WITH THEIR GUIDELINES AS WELL AS T-D-H-C-A. 
          SO THAT NEW AMOUNT'S GONNA BE 23.4 MILLION. 
          UM, WE GOT THAT IN, I THINK TWO DAYS AGO, AND I DON'T BELIEVE WE WERE ABLE TO UPDATE THE PRESENTATION, UH, BEFORE THEN. 
          AS WE HAD ALREADY SUBMITTED LAST WEEK. 
          UM, THE SELLER NOTE WILL HAVE, UM, PRIORITY AFTER THE PSC PARTNERSHIP FEES, UH, WITH CITY OF DALLAS. 
          SO, UM, THAT WILL GET PAID OFF BEFORE ANY CASH FLOW SPLITS WITH OUR L WITH OUR LP. 
          AND YOU CAN JUST THINK OF THAT AS ESSENTIALLY MONEY THAT INVOLVE IS LEAVING IN THE DEAL, UM, IN ORDER TO, UM, MAKE UP ANY GAP IN FINANCING. 
          UM, AND WE ANTICIPATE THAT SELLER NOTE BEING PAID OFF BY YEAR 11. 
          SO WE SAY THAT'S THE PARTNERSHIP FEES. 
          SO OUR PARTICIPATION OF THE DEVELOPER FEES COMES FIRST OVER THE SELLER NOTE. 
          BUT WHEN WE GO FROM THAT GROUND LEASE, HOW ARE WE STRUCTURING THESE DEALS NOW? GROUND LEASE OR WHETHER IT'S A GROUND LEASE, UH, PAYMENT UNDER THE GROUND LEASE OR SOME SORT OF ADMINISTRATIVE PAYMENT UNDER THE LPA IS WANTING THE SAME. 
          ARE WE COMING FIRST BEFORE THE SELLER ? THINK THAT'S BEEN OUR PRACTICE? CERTAINLY. 
          I THINK THAT'S WHY I GUESS HEARD HERE AND, AND CORRECT. 
          SO, SO WILL THEY BE SEEKING A PROPERTY TAX EXEMPTION THROUGH A UH, YES. 
          AND HOW'S IT CURRENTLY STRUCTURED? WELL, THEY, THIS IS A BOND INDUCEMENT, RIGHT? WE, WE HAVEN'T NEGOTIATED YET. 
          NO, BUT I MEAN TODAY, AS OF TODAY ON THE, IT'S ON THE TAX. 
          SO WE'RE GONNA TAKE AN EXISTING TAX BANK YES. 
          OFF THE TAX RULES, CORRECT? YES. 
          AND I HAVE A QUESTION. 
          YOU, YOU SAID ALL THIS, BUT I WANNA MAKE SURE I UNDERSTAND IT CORRECTLY. 
          THERE'S A LAWYER ON IT RIGHT NOW THAT MAKES YOU SUBJECT TO LITECH INCOME LIMITS, BUT DHA HAS IT AS A VOUCHER PROGRAM. 
          SO YOU'RE NOT SUBJECT TO RENT LIMITS. 
          SO ARE THAT'S CORRECT. 
          THE VOUCHERS ARE PAYING MARKET RATE FOR THE UNITS AND THE RESIDENTS ARE JUST INCOME RESTRICT. 
          OKAY. 
          AND IT WAS BOUGHT WITH 23 FOR 21 MILLION, AND IT'S THE INTERNAL TRANSFER PRICE HERE IS 26. 
          HE SAID THAT RACHEL CAME IN. 
          IT'S NOT THAT WITH 23 MILLION STILL. 
          YEAH. 
          TRANSFER PRICE IS 23 4. 
          I, I HAVEN'T SEEN ANY MULTIFAMILY GO UP IN VALUES COMPARED TO 23. 
          THAT, THAT, THAT CAUSES ME PAUSE. 
          WHAT'S YOUR, WHAT SEAN'S CLAIM, GO AHEAD. 
          UM, THAT, THAT CHANGE IN PRICE REPRESENTS ABOUT A 10% APPRECIATION OVER THE COURSE OF THREE YEARS, WHICH IS, UM, NOT SIGNIFICANT. 
          WELL, IT IS WHEN THE OVERALL MARKET HAS GONE DOWN 10 OR 15%, 20%. 
          IT'S A BIG DELTA FROM MARKET FOR SURE. 
          WELL, WE, WE, YOU KNOW, WE AREN'T MAKING UP THIS PURCHASE PRICE. 
          THIS IS, UM, THIS IS COMING FROM AN APPRAISAL THAT WILL BE APPROVED BY FREDDIE MAC AS WELL AS OUR LP. 
          AND YOU KNOW, WE DIDN'T ORDER, WE, WE DIDN'T, YOU KNOW, SPAWN THIS PURCHASE PRICE OUT OF THIN AIR. 
          IT CAME FROM AN APPRAISAL ORDER BY OUR LENDER. 
          YEAH. 
          OKAY. 
           APPRAISAL. 
          SHOULD WE NOT APPROVE THE, UM, STATE MEMORANDUM, IF YOU WILL? WHAT, WHAT WE ALL DO WITH THE PROPERTY AS THE LURE EXPIRES? WHAT'S YOUR PLAN? SURE. 
          OTHER OPTION? UH, UH, IF WE DON'T YEP. 
          PROCEED WITH THE HAVE. 
          YEP. 
          UH, I THINK JUST TO PROCEED, I AGREED JUST PLANNING ON EXTENDING OUR, UM, CONTRACT WITH DHA. 
          SO PLAN ON IF THE AFFORDABLE HOUSING PER FOR BANKER, OUR OWNERSHIP. 
          AND CURRENTLY, DO Y'ALL HAVE ANY CAP X OR RESERVES TO DO ANY TYPE OF IMPROVEMENT ALONG THE WAY? WE'VE ACTUALLY BEEN DOING SOME RECENTLY, WE'RE SOMETHING'S GOING ON RIGHT NOW, WE JUST REPLACED THE ROOF. 
          SO I THINK YEAH, LAST YEAR WE'RE DOING SO FOR INTERIOR CORRIDOR ORGANIZATIONS, UM, BECAUSE IT'S ALL ONE BUILDING'S, A LOTTED FACING FLOORING AND HANDING ALL THAT RIGHT NOW, BUT NOTHING IN THE UNIT, SO TO SPEAK. 
          UH, AS WE'RE, AS WE'RE FLIPPING SOME UNITS, UM, IT'S SOME VACANT, WE DO MAKE SOME IMPROVEMENTS, UM, POINT FLOORING, THINGS LIKE THAT. 
          WHERE ARE WE AT THE, WE WE'RE IN THE EXTENDED USE PERIOD RIGHT NOW. 
          IS THAT WHERE THIS IS IN THE PROGRAM? 
          [01:10:01]
YES. 
          BE THIS IS 2010 CONSTRUCTION. 
          YEAH, 2010 CONSTRUCTION. 
          SO IT JUST CAME OFF BLIND, SO IT'S OKAY. 
          SORRY, THAT'S A, I I DON'T THINK I BELONG BECAUSE I WAS TRYING TO FIGURE OUT, SO YOU SAID THE LAURA WAS ABOUT TO EXPIRE WHEN I THINK THE INITIAL WAS JUST EXPIRED. 
          EXPIRED. 
          THERE'S TWO SEPARATE SEPARATES ON EACH PROPERTY. 
          PRACTICALLY CORRECT ME. 
          THERE'S A INITIAL 15 YEARS AND THESE BONDS, THERE'S ANOTHER 15 YEARS ON TOP OF THAT. 
          SO YOU STILL HAVE 15 YEARS OF COMPLIANCE. 
          YES. 
          AND YOU STILL HAVE THE PHA BASED VALUES. 
          YES. 
          AND IF WE ENTER INTO THE DEAL RIGHT NOW, IT'S STRUCTURED AS A DEVELOPER FEE. 
          SO DID I SEE THAT CORRECTLY? IT'S ABOUT 1820, BOUNCING BACK THE HSE RIGHT HERE. 
          UH, DON'T KNOW THAT I'M TOP OF MY HEAD ACTUALLY. 
          SORRY, WHAT WAS THAT QUESTION? WAS THE FEE COMING BACK TO THE HFC ON ANNUAL BASIS? UM, THE HFC TAKES 20% OF, OF EACH DEVELOPER FEE INSTALLMENT. 
          UM, SO TOTAL, UM, THROUGHOUT THE COURSE OF THE CONSTRUCTION PERIOD TO STABILIZATION WILL BE AROUND A MILLION DOLLARS. 
          THAT, THAT'S, THAT, THAT'S NOT BEING DISCUSSED THOUGH. 
          WE'RE NOT, WE HAVEN'T GOT MOU TERMS. WE'RE WE? YEAH, THAT'S TAKEN, THERE'S NO, THAT'S A NEGOTIATION RIGHT NOW. 
          YEAH. 
          THAT WILL BE NEGOTIATION. 
          IT'S NOT, IT'S NOT. 
          IT'S JUST A PRELIMINARY INDUCEMENT. 
          RIGHT. 
          I MEAN, RIGHT NOW YOU CAN, WE CAN TALK ABOUT ISSUER FEES. 
          I MEAN, YOU'LL, YOU'LL SEE YEAH, NO, NO, I GOT IT. 
          UM, KEEP GOING. 
          OR WHOEVER HAS, WHAT IS THE PUBLIC BENEFIT CALCULATION? HOW MUCH ARE WE GETTING IN RENTS? WELL, AGAIN, THE PUBLIC BENEFIT KIND OF COMES WHEN WE ACTUALLY PROVIDE THE TAX EXEMPTION. 
          THEY INTEND TO COME IN SURE. 
          FOR THE TAX EXEMPT, SO, RIGHT, RIGHT. 
          WELL THE, IT'S ON THE ROOF ON THE RULES FOR 200 OR OR 11 MILLION. 
          TRUE. 
          BUT THAT'S NOT THE VOTE TODAY. 
          IT'S JUST DO WE WANNA ISSUE THE BONDS ON THIS? I GUESS THE OTHER QUESTION WOULD BE, IF YOU GUYS HAVE LOT PAUSE FOR THE TAX EXEMPTION, WOULD YOU STILL BE WILLING TO ISSUE THE BONDS IF THEY WANTED TO GO THROUGH WITH THE BOND SECOND? WE DON'T HAVE, WE DON'T HAVE TO DO THE YEAH, I THINK THAT'S, IT'S LIKE WE CAN BE PARTNER, WE CAN BE BOND ISSUE. 
          WE CAN BE ONE BOTH EVEN. 
          BUT WHAT IS THIS, ASSUME LIKE YOUR SOURCES DEAL RIGHT NOW IS FOR BOTH, THIS IS ASSUMING  TAX. 
          YES. 
          IS THE AFFORDABILITY CHANGING POSING A CHANGE IN THE AFFORDABILITY LEVEL, OR IS IT IT'S GONNA LOCK IT IN FOR ANOTHER 30 YEARS? THAT'S WHAT IT'S OKAY. 
          RIGHT NOW IT'S LOCKED FOR 15. 
          FOR 15, BUT I IMAGINE RE SYNDICATE IT'S NOT A DELTA BETWEEN THE MARKET RENTS. 
          WELL, AND WHAT'S INTERESTING IN THIS PRESENTATION, IF YOU LOOK AT THE ONE BEDROOMS, IT LOOKS AS IF THE RENTS PROPOSED RENTS ARE HIGH WITH MARKET. 
          IF YOU LOOK AT THE PROPERTIES THAT THEY'VE LISTED IN THEIR DOCUMENT, WHICH INTEREST ARE, THOSE ARE RENTS THAT ARE JUST ASSESSED IN THE  GATE EVERY YEAR. 
          UM, EXCEPT THE RENTS THEY OFFER JOBS BASED ON, YEAH. 
          SO, SO RIGHT NOW DHA IS PAYING A HUNDRED PERCENT OF THE RENT. 
          IT'S, IT'S RESTRICTED AND CURRENTLY FOR AN EXTENDED PERIOD, AND YOU'RE GONNA KEEP IT RESTRICTED AND OPERATE THE SAME WAY YOU'VE BEEN DOING IT. 
          I'M NOT SAYING SO, BUT THE BENEFIT IS ALSO THAT JUST SO YOU KNOW, WE'RE EXTENDING FOR ANOTHER 15 YEARS FOR LOCKING IN AFFORDABILITY FOR ANOTHER, YOU KNOW, FOR 30 YEARS. 
          ON TOP OF THAT THERE'S A $50,000 REHAB THAT THAT IS BEING INVESTED, THAT WE'RE GETTING CREDIT. 
          IS THAT, I MEAN, I DON'T DUNNO HOW TO QUANTIFY WHETHER THAT'S QUOTE NEEDED, RIGHT? I MEAN, IF WE'RE GONNA SPEND MONEY AND THE ALL THAT STAYS THE SAME. 
          I I, IT'S AT LEAST NOW PRESUMABLY, WHAT ARE WE GAINING? I GUESS WE'RE GIVING UP TAX GETTING 15 YEARS ON THE BACK END. 
          WE'RE NOT, WE GOT 15 YEARS FOR A DIFFERENT DEAL. 
          COME, WE'RE NOT GIVING A TAX ON THIS VOTE. 
          IT'S FOR RECENT. 
          IT'S THE VOTE THAT'S UP PER VOTE TODAY IS ARE WE GOING TO LOCK IN THE RESTRICTIONS FOR ANOTHER 30 YEARS AND ARE WE GOING TO FUND AND FINANCE A 50,000 DOOR REHAB? SO WE'RE NOT TALKING ABOUT A TAX EXEMPTION AT THIS TIME. 
          NOW THERE ARE CONCERNS I HAVE ABOUT THE BLANKETS, NOT, NOT AN ARM LENGTH TRANSACTION AND THAT IT'S GONNA BE MARKED UP BACK. 
          YOU KNOW, I UNDERSTAND THE APPRAISAL, BUT YOU KNOW, THERE'S A SELLER NOTE THAT'S FINANCING THAT AS WELL. 
          SO IT'S KINDA LIKE WHAT, I MEAN, EVERYONE KIND OF VOTE HOWEVER THEY WANT. 
          I MEAN, IT'S SOMEONE'S BOSS, BUT I'M JUST TRYING TO CLARIFY WHAT EXACTLY IS THE ISSUE ON THE TABLE TODAY. 
          AND IN TERMS OF LOCKING IN THE AFFORDABILITY, IF YOU GET THE TAX EXEMPTION, THEN YOU WILL MAINTAIN THE LAURA THAT KEEPS THE LITECH INCOME LIMITS, I THINK THE TAX EXEMPTION. 
          [01:15:01]
OKAY. 
          AND JUST SO THAT MAINTAIN AND KEEPING YOUR AFFORDABLE PRESERVATION STOCK IS SOMETIMES A MAJOR INITIATIVE. 
          THE CITIES SAME. 
          YOU GOTTA MAKE SURE I'M CONFUSED IF THEY'RE  OR NOT. 
          I MEAN, IF THEY'RE GETTING THE VOUCHERS PAYING MARKET RENT, THE ONLY THING THAT'S KEEPING YOUR REALLY AFFORDABLE IS MAKING SURE THAT IT'S AVAILABLE NEED AFFORDABLE HOUSING. 
          BUT IF YOU TAKE AWAY THE INCOME LIMITS, THE RENT, YOU'RE STILL GETTING PAID THE RENT. 
          THE RENT. 
          SO I'M, I WANNA MAKE SURE THAT WHEN WE'RE LOCKING AFFORDABILITY, IT'S NOT JUST THEIR ASSOCIATION WITH DHA, IT'S ALSO THE PEOPLE THAT HAVE THE DEPART AVAILABLE AT THAT. 
          IT SEEMS LIKE THERE'S TWO AND I DON'T, BUT THERE IS. 
          YEAH. 
          RIGHT. 
          LIKE YOU HAVE TO QUALIFY FROM AN INCOME BASIS, RIGHT? YOU HAVE TO BE AT BELOW 50%  TO BE ABLE TO RENT. 
          BUT ALSO IT'S, SO THE RENT'S THE SAME. 
          SO YEAH, I I GUESS YOU'D BE MAKING A MILLION DOLLARS A YEAR IF YOU GET RID OF THE AFFORDABILITY, YOU COULD PAY $1,400 PER MONTH. 
          I'M JUST SAYING THE, THE LIMITS ARE THE LIE TECHNICAL RESTRICTIONS. 
          THE DHA AFFILIATION, IT'S WHAT WELL, THE DHA SETS THE THE RENTS AS WELL. 
          YEAH. 
          THEY SAID WHAT THEY SAID ARE MARKET RENTS AND THEN THEY FUND THE GAP YEAH. 
          BETWEEN WHAT THE TENANT PAYS AND THE MARKET RENTS. 
          NOW THE RESTRICTIONS, THE LIE TECH RESTRICTIONS ARE BASED OFF WHAT IS THE OUT-OF-POCKET FROM THE TENANT, RIGHT. 
          WHICH IS GONNA BE WAY LOWER THAN THE LIVE TECH RESTRICTIONS BECAUSE I MEAN, THE PROJECT BASED PROGRAM IS JUST COMPLETELY SEPARATE FROM THE LIVE TECH PROGRAM. 
          THEY FUND A MARKET, SAY, HEY, THIS IS THE MARKET RENT, WE'RE GOING TO FUND X PORTION THAT COUPLES WELL WITH LIVE TECH BECAUSE WHAT THE OUT-OF-POCKET PAY IS TO THE TENANT AS WELL UNDER THE LITECH RESTRICTIONS. 
          SO THOSE, THOSE ARE TWO SEPARATE PROGRAMS. BUT THAT IS VERY COMMON THAT YOU DO GET PROJECT-BASED VOUCHERS WITH A LITECH. 
          BUT THEY ARE 2 1 2 SEPARATE PROGRAMS, BUT THEY SORT OF INTERMIX WITH EACH OTHER. 
          WELL, SO THE DA VOUCHER PROGRAM OPPOSES SOME LIMITS THAT ARE YES. 
          GOT IT. 
          OKAY. 
          HAPPENS TO MESH. 
          MESH, THAT'S IT. 
          BUT THE DEVELOPERS EARNING MARKET GRANTS. 
          CORRECT. 
          OKAY. 
          THEY ARE, I'M, I'M, I'M TO FIND THE IMPROVEMENT, I'LL JUST SAY I SAY ABOUT THIS, BUT I HAVE A, I HAVE A HARD TIME IT, WHEN I WAS LOOKING THROUGH THE PRESENTATION, I WAS LIKE, WHEN DOES ALL EXPIRE? I THOUGHT IT WAS LIKE A YEAR OR TWO FROM NOW. 
          I WOULD DEFINITELY CONSIDER WE WERE GOING TO TRY TO PRESERVE EXISTING BEFORE, BUT TO ME, WHEN THERE'S 15 YEARS LEFT ON IT RIGHT NOW, IT'S GONNA STAY AFFORDABLE. 
          IT'S ALREADY THERE FOR SENIORS. 
          UNLESS YOU WERE TO SHOW ME IT WAS GONNA BE TRANSFORMATIONAL FOR THE AREA, LIKE SOME OTHER BENEFIT. 
          I DON'T UNDERSTAND WHY OUR BOARD WOULD PAY FOR A RENOVATION WHEN IT'S ALREADY AFFORDABLE, UNLESS THERE'S ANOTHER CASE TO BE MADE. 
          AND I HAVEN'T HEARD THAT YET. 
          MAYBE DAVID, YOU'RE GONNA SELL ME ON IT, BUT I HAVEN'T HEARD IT. 
          WELL, I MEAN, IT, IT, IT'S REALLY WHAT KIND OF GETS INTO WHAT IS THE Y TECH PROGRAM FOR. 
          SO THERE'S REALLY CERTAIN INTERVALS THAT A PROPERTY COULD HAVE MADE MASSIVE CAPITAL INFUSION. 
          IF YOU'RE LIKE A NORMAL MARKET RATE DEAL, I MEAN THEY TRADE HANDS FIVE, YOU KNOW, EVERY 5, 3, 5, 7 YEARS. 
          WELL, AT THAT TIME, A CAPITAL REHAB IS DONE AT THAT TIME, RIGHT? FOR A LIVE TECH PROPERTY, IT IS A 15 YEAR HAULT. 
          OKAY? SO YOU BUILD THE DEAL AND IT WON'T HAVE ANY MASSIVE MAJOR CAPITAL INVESTMENT INTO IT UNLESS SOMEONE RES SYNDICATE IT 15 YEARS FROM NOW. 
          SO THIS IS THAT WINDOW WHICH YOU CAN GET SOME LEVEL OF MASSIVE CAPITAL REHAB. 
          OR IF YOU DON'T DO IT, THEN YOU JUST KIND OF RIDE THROUGH THE EXTENDED USE PERIOD. 
          AND AT THE END OF 30 YEARS, YOU'VE GOT A TH PROPERTY THAT HAS HAD NO CAPITAL INVESTMENT FOR 30 YEARS SINCE IT WAS ORIGINALLY BUILT. 
          THAT BECOMES A PROBLEM. 
          OKAY? SO IT IS VERY COMMON THAT AT THE END OF THE COMPLIANCE PERIOD, EITHER A, SOMEONE BUYS THE PROPERTY SAYING, I'M JUST GONNA RIDE OUT AND, YOU KNOW, IT'S A GREAT AREA, I CAN TAKE IT TO MARKET, MAKE A BIG BANG IN 15 YEARS, UH, OFF MY BUCK 10 YEARS NOW. 
          OR WE GET A LITECH DEVELOPER THAT SAYS, I'M GOING TO PUT A MAJOR REHAB, DO A MASSIVE REHAB THAT OTHERWISE WOULD NOT GET. 
          AND THEN, YOU KNOW, I AM GONNA LOCK IN THE AFFORDABILITY OF 30, UH, FOR 30 MORE YEARS. 
          IT'S HOWEVER WE WANNA GO ABOUT 30 MORE YEARS. 
          15 MORE YEARS, NO, 30 MORE YEARS ON TOP OF, WELL, NO, NO, 30, 30 YEARS FROM TODAY. 
          SO YEAH, 15. 
          RIGHT? SO, SO THE QUESTION AT HAND, IF THEY BOUGHT IN 2023, WHAT WAS THE PLAN UPCOMING JUST THREE YEARS AGO? AND SO YOU TALK ABOUT THE MAJOR CAPITAL EVENTS, IF YOU'LL MM-HMM . 
          SO THAT WAS ONE THREE YEARS AGO. 
          MY, MY ASSUMPTION IS THEY BOUGHT IT KNOWING THE COMPLIANCE PERIOD, I ASSUME THIS YEAH. 
          WAS THAT THE PLAN WHEN YOU BOUGHT IT TO DO? YEAH, THE PLAN WAS BUY, UH, THE HAING COMPLIANCE PERIOD, PERIOD. 
          WAIT UNTIL THAT CLIENT'S PERIOD ROLLS OUT AND THEN DO EVERY S SYNDICATION AND THEN LOCK IN THE AFFORDABILITY FOR 30 YEARS OR 15 ADDITIONAL YEARS TO A REHAB OF 15,000 A DOOR SEEMS LIKE NATURALLY AFFORDABLE, NATURALLY OCCURRING AFFORDABLE HOUSING. 
          THAT'S A, OUR, OUR MONEY TO, 
          [01:20:01]
WELL, IT'S NOT OUR MONEY, IT'S GOVERNMENT, IT'S THE US GOVERNMENT, THE MONEY WORKS RESOURCE PHRASING THE MONEY THAT WE'RE STEWARD AND RESPONSIBLE. 
          WELL, THERE'S TWO DIFFERENT PLANS. 
          THERE'S WHAT WE MIGHT BE GIVING UP IN TERMS OF TAX EXEMPTION, IT WON'T BE, MIGHT BE TAX EXEMPTION. 
          YEAH, THE TAX EXEMPTION. 
          THERE'S QUESTIONS I HAVE ON THIS PROPERTY RELATED TO PROVIDING A TAX EXEMPTION. 
          NOW, THIS IS REALLY ABOUT, HEY, PRESERVING AFFORDABLE STOCK. 
          I MEAN, IT IS, IF YOU DO, IF YOU ARE COMMITTED, MY OPINION, IF YOU'RE COMMITTED TO KEEPING THIS UNDER THE RENT RESTRICTIONS THAT THERE CURRENTLY ARE, RIGHT? AND YOU WANNA KEEP HAVE CAPITAL INVESTMENT, MY BELIEF IS EVERY 15 YEARS IT'S TIME TO REHAB IT. 
          JUST DO IT. 
          I MEAN, THAT'S, THAT'S JUST A PERSONAL BELIEF I HAVE RELATED TO THIS PROGRAM. 
          IF YOU DON'T WANT TO DO IT, THEN THE PLAN IS LOOK, JUST WRITE IT OUT. 
          LET IT GO TO MARKET 15 YEARS FROM NOW. 
          THAT TO ME, THOSE ARE THE TWO CHOICES WHEN YOU'RE FACING A, A DEAL LIKE THIS. 
          NOW THE TERMS IN WHICH WE OFFER A TAX EXEMPTION, THAT'S DIFFERENT, BUT THAT'S NOT WHAT'S ON THE TABLE TODAY. 
          AND THE INTERNAL, YOU KNOW, IF THAT'S THE PLAN, YOU NEED A REHAB. 
          OKAY. 
          BUT MARKING IT UP A COUPLE MILLION DOLLARS IS A WHOLE DIFFERENT BALLGAME. 
          TO ME THAT FEELS 100% OKAY. 
          TO ME, THAT IS, AGAIN, THAT'S, THAT'S A QUESTION FOR WHEN WE PARTNER ON THE DEAL AND WE'RE THE ONES BUYING THE EXEMPTION AND WE'RE PART OF THE PARTNERSHIP THAT'S BUYING IT AT THAT MARKUP. 
          I KNOW YOU'RE SAYING WE'RE NOT THERE YET, BUT I JUST WANNA GO BACK TO, BECAUSE I DON'T WANNA SEND Y'ALL DOWN DOING ALL THIS WORK FOR THE NEXT FEW MONTHS. 
          YOU COME BACK IN MOU AND WE ALL SAY WE'RE NOT DOING TAX EXEMPTION. 
          SO IF WE WERE TO, I DON'T KNOW WHAT EVERYONE SAY, BUT IF WE WERE TO SAY WE WILL ONLY CONSIDER THE BOSS, I THINK YOU'RE GONNA ASK THIS QUESTION, BUT I THINK WE GOTTA COME BACK TO THIS. 
          WHAT, LIKE, WOULD Y'ALL STILL MOVE FORWARD WITH JUST DOING THE BONDS WITHOUT A TAX EXEMPTION? CAN YOU STILL MAKE IT WORK? AND WHAT, IF ANYTHING, WOULD THAT CHANGE ABOUT THE RENOVATION? BECAUSE YOU'RE, YOU WOULDN'T HAVE THE TAX EXEMPTION. 
          YEAH. 
          ARE YOU WILLING TO LEAVE IT IN THE EXISTING DEAL, NOT SELL IT, NOT TAKE A SELL IT NOTE IT'S INTERNAL TO THE TRANSACTION, JUST MAKE IT A STRAIGHT, STRAIGHT RE REFUND THAT AGAIN, IT WAS, IF, IF, IF THERE WAS NO TRANSFER OF TIME AND IT WAS A STRAIGHT REFINANCE AND THERE WAS NO SELLER NOTE THAT THAT JUST STAYED IN AS  AND, AND, AND THAT, THAT WOULD MAKE ME FEEL BETTER. 
          I HAVE TO SAY, DO YOU MIND IF I INTERJECT HERE AND JUST, JUST TAKE A STEP BACK AND TRY TO PAINT A BIGGER PICTURE ABOUT WHAT WE'RE TRYING TO ACCOMPLISH HERE? AND I THINK AARON SAID IT BEST. 
          UM, YOU KNOW, WE ARE, WE ARE LOW INCOME HOUSING DEVELOPERS, OWNERS, AND OPERATORS. 
          UM, YOU KNOW, THIS IS NOT OUR FIRST RODEO WITH AN ASSET LIKE THIS. 
          UH, WE BOUGHT IT AT THE END OF ITS COMPLIANCE PERIOD. 
          AND HERE WE ARE PAST YEAR 15. 
          AND, UM, THIS PROPERTY FRANKLY NEEDS A LOT OF, YOU KNOW, CAPITAL INVESTMENT TO KEEP IT GOING FOR THE RESIDENTS HERE. 
          SO, YOU KNOW, THIS BOND ISSUANCE AND THIS DEAL IS TO FUND, UM, YOU KNOW, A REHAB FOR THESE RESIDENTS. 
          UH, THIS IS A SENIOR PROPERTY, UM, LOW INCOME. 
          THESE FOLKS PRESUMABLY WOULD HAVE NOWHERE ELSE TO GO IF NOT FOR THIS PROPERTY. 
          AND IT'S BEEN 15 YEARS SINCE IT, YOU KNOW, WAS BUILT. 
          AND, YOU KNOW, AS WITH ANY PIECE OF REAL ESTATE AFTER THAT PERIOD OF TIME, UH, IT'S GONNA NEED A LITTLE BIT OF LOVE. 
          SO THAT'S WHAT WE'RE TRYING TO DO HERE WITH THIS PROJECT. 
          UM, YOU KNOW, WE'RE, WE, WE'RE CURRENTLY 53 AND A HALF, UH, A DOOR AROUND $8 MILLION INVESTMENT. 
          IT'S GONNA GO A LONG WAY FOR PRESERVING THIS ASSET. 
          AND, UH, REALLY NOTHING IS CHANGING ON THE AFFORDABILITY REQUIREMENTS, UM, YOU KNOW, FOR THESE TENANTS. 
          SO THEIR LIVES WILL ONLY BE IMPACTED POSITIVELY AS A RESULT OF THIS TRANSACTION. 
          I'M GONNA ASK ONE OTHER QUESTION ON THE FUNDING USES. 
          SO $8 MILLION FOR IMPROVEMENTS. 
          THERE'S 6 MILLION, THREE FOR COST OF ISSUANCE AND 8 MILLION, TWO FOR MISCELLANEOUS. 
          WHAT ARE THOSE COST? UM,  HAS GOTTA BE THE DEVELOPMENT FEE, RIGHT? YES. 
          THAT'S INCLUDED. 
          NO, THIS, NO, IT'S THAT, THAT INCLUDES CONSTRUCTION INTEREST. 
          UM, UH, LE THERE'S A LOT OF ATTORNEYS INVOLVED WITH THESE DEALS. 
          LEGAL FEES, UH, FOR THE COST OF ISSUANCE, THAT'S A LOT OF COST RELATED TO THE BOND ISSUANCE ITSELF. 
          UM, THAT'S ALMOST AS MUCH LIKE HIGHER. 
          AND WHAT ABOUT THE MISCELLANEOUS OF 8 MILLION? TWO? YEAH, YEAH. 
          MISCELLANEOUS IS GONNA BE, UM, UH, CONTINGENCIES FOR THE CONSTRUCTION PERIOD, OPERATING RESERVES THAT ARE GONNA BE REQUIRED BY THE STATE AGENCY AS WELL AS OUR LP, UM, TAX CREDIT RELATED, UH, RESERVATION FEES, UH, PFC FEES. 
          UM, AND THEN DEVELOPMENT PROFIT IS INCLUDED IN THE MISCELLANEOUS EXPENSES. 
          DO YOU HAVE A DEVELOPER BUDGET THAT WAS UPLOADED ON THE 
          [01:25:01]
SITE? I DIDN'T SEE, UH, SOMETHING ON PAGE 16. 
          YEAH, WE TYPICALLY DON'T GET THAT PART. 
          OKAY. 
          YEAH, I MEAN, YOU MENTIONED EARLIER THAT A LOT OF IT'S GONNA BE COSMETIC FLOORING, APPLIANCES, PAINT. 
          HOW MUCH IS IT STRUCTURAL? YOU KNOW, YOU'RE DOING THE ROOF. 
          ARE YOU DOING THE HVACS? ARE YOU DOING THE ROOF ALREADY? YEAH, WE ALREADY DID. 
          THEY ALREADY DID THE ROOF. 
          SOME OF THIS WILL ACTUALLY BE SOME ADDITIONAL FOUNDATION REPAIRS. 
          UM, BUT WE ARE DOING THE AUDIO HVAC ON WATER HEATERS. 
          UM, YEAH, IT IS, IT IS THE PROPERTY, SO IT'S NOT FALLING APART. 
          IT DOESN'T NEED REPAIRS. 
          UM, BUT WE DO WANNA EXTEND THE USEFUL LIFE OF IT. 
          AND A LOT OF THAT DOES INCLUDE, YOU KNOW, THE COUNTERTOPS, THE CAPTAINS DO, UM, SHOWERS, TOILET. 
          I THINK THE ONLY THING SAVING IT FOR ME POTENTIALLY IS THAT IT'S SENIOR. 
          SO I'M NOT SAYING THAT IT'S SENIOR, SO I'M NOT SAYING NO, I, YOU KNOW, I'M HAPPY TO LET IT MOVE FORWARD AND, BUT I, I HAVE A LOT OF QUESTIONS AND I WOULD WANT TO REALLY UNDERSTAND WHAT THIS LOOKS LIKE, WHAT THE RENOVATION LOOKS LIKE, BECAUSE SO FAR I JUST DON'T SEE THE VALUE IN IT OF OUR VAULT. 
          BUT, YOU KNOW, I THINK IF THE GROUP WANTED TO LET IT GO FORWARD AND YOU GUYS WANTED TO MOVE IT ALONG, I THINK WE WOULD NEED, I, FOR ME TO GET ON BOARD THE, I WOULD NEED TO SEE A LOT MORE ABOUT WHAT THE RENOVATION ACTUALLY GONNA ENTAIL. 
          I DON'T LOVE THE, THE PLAN YOU LAID OUT FOR THE SENIORS TO LIKE, HANG OUT IN THE COMMON AREA WHILE THERE'S, I DON'T KNOW WHAT THE RIGHT SOLUTION IS, BUT I, I WANNA UNDERSTAND THAT BETTER. 
          I, YOU KNOW, LIKE, TO ME SILLY THINGS, BUT FOR ME, LIKE IF THERE'S WASHER AND DRYER HOOKUPS IN THE, UM, UNITS, BUT OUR, IT SOUNDS LIKE YOU'RE NOT PROVIDING WASHER DRYERS, LIKE OUR SENIORS SHOULDN'T BE GOING DOWN TO LIKE THE, THE LAUNDRY FACILITY. 
          THEY SHOULD, THERE, THERE NEEDS TO BE THOSE KIND OF CONSIDERATIONS OF LIKE, WHAT, HOW ARE WE REALLY CHANGING THESE PEOPLE'S LIVES? AND A CASE MADE FOR THAT, THAT IN THE PRESENTATION TODAY, I THINK IS A LITTLE LACKING, BUT I'M, I'M OPEN TO GIVING Y'ALL ANOTHER CHANCE TO LIKE, KEEP WORKING THROUGH AND COMING THROUGH. 
          UM, BUT, UH, I, I HAVEN'T SEEN IT YET. 
          TO ADD TO THAT, PRESIDENT ELLIS MENTIONED, YOU KNOW, THE FACT THAT WE HAVE TO THINK ABOUT PRESERVING AFFORDABILITY. 
          SO WE HAVE, NOW THE QUESTION THAT I HAVE TO YOUR POINT IS, IS THE 2010 VINTAGE, IF YOU'LL, AND YOU SAY EVERY 15 YEARS, SO THAT NEEDS TO BE MAJOR IMPROVEMENT. 
          DOES THE INHERENT STRUCTURE OF THE PROPERTY LEND ITSELF AGAIN FOR REALLY A CONDUCIVE ENVIRONMENT FOR SENIORS? IF, IF FOR WHATEVER REASON WE DON'T APPROVE OUR WELL, CAN I THAT POINT, BUT SHOULD WE GO DOWN THE ROAD AND THEY ASK FOR MOU SAY NO? IS THERE TRULY A DELTA BETWEEN MARKET TODAY FOR THOSE UNITS, FOR SENIORS AND OR ANY ASSISTANCE THAT WE WOULD OTHERWISE GIVE TO BUY PARK ? AND I, I STILL NOT COMFORT. 
          I DON'T, I AGREE WITH YOU THAT WE NEED TO CONTINUE TO MAINTAIN FOR YOU. 
          I JUST DON'T KNOW THAT THIS PARTICULAR PROPERTY, I DON'T KNOW, WHICH IS SOMETHING DOESN'T JUMP AND SAY, YEAH, WE NEED TO KEEP THIS FROM, THIS ONE WORKS WELL FOR US AND WE'RE GOING TO SUFFER A SIGNIFICANT LOSS IF YOU DON'T PARTNER. 
          I THINK THERE'S A LITTLE BIT OF A CONFUSION BETWEEN WHAT RESERVE MEANS BECAUSE, MAN, I DON'T HAVE A CRYSTAL BALL, BUT I IMAGINE IN 10 OR 15 YEARS, THE RENTS WILL BE THE SAME AS THE MARKET RENT PROBABLY. 
          UH, THERE'S NOT GONNA BE A MASSIVE APPRECIATION IN RENTS. 
          I, I MEAN, I DON'T KNOW. 
          UM, SO PRESERVING IN THIS CASE REALLY MEANS INVESTING IN THE PROPERTY, PRESERVING THE PHYSICAL ASSETS. 
          SO, UH, A MIRACLE CHANGE, NOT GETTING A HUGE NUMERICAL SAVINGS. 
          REMEMBER THE MISSION OF, OF OUR ORGANIZATION AND AN HSC IS NOT AFFORD HOUSING SAFE, SANITARY, DECENT HOUSING AND AFFORDABLE LIMITS. 
          SO SOMETIMES IT'S A QUESTION OF KEEPING A SAFE, SANITARY DECENT. 
          WE NEED TO INVEST. 
          SO IS THIS PROJECT NOT SAFE, SANITARY, DECENT RIGHT NOW IT'S THE PICTURES I SAW. 
          I MEAN, IT LOOKS, LOOKS VERY NICE. 
          2010, I UNDERSTAND THIS. 
          OKAY, HOLD ON, HOLD ON. 
          IN 15 YEARS, THIS CAN BE A SLUMP. 
          THERE'S NO CAPITAL INVESTMENT. 
          THAT'S, THIS IS A PREVENTATIVE CASE. 
          THIS IS A VERY COMMON STANDARD WITHIN THE STATE OF TEXAS. 
          15 YEARS YOU DO A 50,000 REHAB. 
          THIS IS NOT OUT OF THE NORMAL, I ASSURE YOU THIS. 
          NO, I, I'M, I'M, AND I'M TELLING YOU, THESE CAN TURN INTO SLUMS IF WE DON'T DO IT AT TIMES LIKE THIS. 
          SO NO, I UNDERSTAND. 
          2010, BUT I'M TELLING YOU RIGHT NOW, APARTMENTS BETWEEN TWO THOU, UH, 15 YEAR AGE TO 30 YEAR AGE CAN TURN BAD REALLY QUICK, JUST SO I'M ON TOP OF IT, ASSISTING BY BASICALLY FACILITATING REFINANCE AND ISSUE 
          [01:30:01]
RESPONSE BOND ISSUE IN THIS CASE. 
          YES. 
          OKAY. 
          SUBSEQUENT REHAB. 
          YEAH, I, I, I'M, I'M JUST STILL, WHAT, WHAT STILL HITS ME IS, IS THE INTERNAL MARKUP TO DO THIS. 
          THE A EIGHT, THE KIND OF DEVELOPER FEE YOU GET FOR BRINGING NEW STOCK INTO PLAY. 
          UM, AND, AND WHEN YOU START ADDING IN ALL THESE COSTS AND THEN ALL THE ISSUANCE COSTS, YOU ADD ALL THAT STUFF IN, YOU'RE GOING FROM A $30,000 UNIT REHAB TO A $70,000 UNIT, LESS THAN HALF IT ACTUALLY GOING INTO THE REHAB. 
          THAT JUST DOESN'T SEEM EFFICIENT. 
          I MEAN, WELCOME TO HEAVILY SUBSIDIZED EXECUTION. 
          I MEAN, YOU GOT TAX CREDITS, YOU GOT BONDS, YOU GOT, YOU KNOW, MULTIPLE SETS OF LAWYERS, YOU GOT ISSUER FEES. 
          I MEAN, THIS IS THE TAX 50 50 RATIO. 
          I HAVEN'T SEEN THAT. 
          LISTEN, THIS IS A SMALLER PROPERTY TOO. 
          YEAH. 
          THAT'S, THAT'S NOTHING TO SCALE. 
          I MEAN, WE'VE BEEN SEEING DEALS OVER 300 UNITS, SO YEAH, AS IT GETS SMALLER, FIXED COSTS THAT ARE RELATED TO ISSUES HAS BECOME A LOT HIGHER RELATIVE TO THE, YOU KNOW, BASIS OF THE DEAL. 
          SURE. 
          WHICH AGAIN, THAT MAY BE A CRITERIA WE'VE GOTTA CONSIDER. 
          LIKE WHERE IS IT EFFICIENT TO DEPLOY OUR CAPITAL, CAPITAL? UM, WE'RE NOT HITTING THIS YEAR, RIGHT? NO, WE'RE NOT EVEN CLOSE. 
          I MEAN YEAH, UNDERSTOOD. 
          BUT NEVERTHELESS, I DON'T THINK THAT GIVES US LICENSE TO BE INEFFICIENT AND THE INDUCEMENT SAYS PROVING UP TO A CERTAIN NUMBER, RIGHT? MM-HMM . 
          SO WE'RE NOT EVEN LOCK IN ON NUMBER TODAY. 
          SO STILL EVALUATED. 
          YEAH, WE'RE NOT  I MEAN, I THINK IT, I THINK IT WOULD BE HELPFUL JUST IN FUTURE CASES TO HAVE A LITTLE BIT MORE DETAIL ON THE ISSUANCE COSTS, THE MISCELLANEOUS ITEMS THAT IT DOES STAND DOWN. 
          YOU KNOW, THERE'S A LOT OF QUESTIONS TO THAT, SO TOTALLY GET THAT IMPROVEMENTS. 
          YEAH, IT'S A LOT. 
          I DO UNDERSTAND THAT. 
          BUT THAT'S WELL, AND LOOK, AND LOOK THE IMPROVEMENTS AS WELL, JUST TO GREATER DETAIL OF IS THE SCOPE OF WORK THAT NEEDS TO HAPPEN. 
          SURE. 
          IS THIS TIME SENSITIVE IN THAT SHOULD WE DEFER THIS AND SAY, HEY GUYS, COME BACK IN A MONTH AND GIVE US THE DETAIL, GIVE US PICTURES, GIVE US BUDGETS. 
          LIKE, I MEAN, AS FAR AS THIS EXISTING PROPERTY, SO WE'RE NOT CHANGING AS FAR AS THE LOOK OF THE PROPERTY REPAINT THE WHOLE PROPERTY, BUT IT'S NOT CHANGING. 
          HELL, I UNDERSTAND. 
          NO, BUT WE, WE NEED, WE NEED, WE NEED A GREATER SCOPE OF WORK. 
          AND I THINK THERE'S JUST TOO MANY QUESTIONS FROM PEOPLE, YOU KNOW, FROM THE BOARD MEMBERS ABOUT WHAT'S BEING DONE AT THE PROPERTY. 
          YEAH, I'D LIKE TO SAY MORE ABOUT THE SCOPE WORKS, WHAT, YOU KNOW, 53,000 ARE UNDERSTANDING EXACTLY WHAT THAT IS. 
          AND THEN MORE DETAILED, THINK A LOT OF PEOPLE BROUGHT UP ON MS. STANCES AND THE, UH, ALL THE, YOU KNOW, 15, I WANNA, CAN WE SEE SOME PICTURE OF THE INSIDE? YES. 
          AND TO DAVID'S POINT, I MEAN, SOME OF THIS IS PREEMPTIVE, RIGHT? AND AS WE'VE LEARNED CITY HALL, WHEN YOU KNOW YEAH. 
          MONEY, I MEAN THERE RESPECT AT THE HC MEETING, YOU DON'T HAVE TO TALK ABOUT THAT. 
          AND JUST A REMINDER ABOUT THE LEVEL THAT WE'RE AT RIGHT NOW WITH AN INDUCEMENT, IF WE INDUCE AND ASK FOR ALL THESE THINGS WHEN THEY COME BACK, THE WORST THING THAT HAPPENS IS THEY WASTE THEIR TIME. 
          SO I'M JUST WONDERING WHY WE WOULD NECESSARILY CONTACT YOU WANT YEAH, YOU WANNA APPROVE THE OOU AND LET THEM, BECAUSE WE'RE STILL CONSIDERING DETAILS, BUT WE DO WANT THOSE DETAILS, BUT THEY CAN GO AHEAD DO THAT IF THEY WANT TO SPEND THE TIME DOING IT. 
          YEAH, YOU'RE YOU'RE RIGHT. 
          IT'S VERY MOST THANKS. 
          WELL, I BE RATHER BECAUSE IT STARTS THE CLOCK, RIGHT? SO I GUESS THAT'S MY, IT'S LIKE, I DON'T MIND APPROVING IT, THE INDUCEMENT TODAY, BUT UNDERSTANDING LIKE THERE'S A LOT OF WORK ON YOUR END THAT THEY, TO COME BACK AND GET AN MOU, WOULD YOU RATHER US DO THAT? OR WOULD YOU RATHER US GIVE YOU A MONTH AND COME BACK AND HAVE THIS DISCUSSION AGAIN? SO FOR 18 MONTHS. 
          SO 18 MONTHS. 
          WELL, WHAT, WHAT YEAR ARE WE TALKING? IS THIS LOTTERY OR IS THIS THIS YEAR'S LONG AGO. 
          THIS YEAR. 
          THIS YEAR, OKAY. 
          YEAH. 
          IF I CAN INTERJECT, I THINK, YOU KNOW, WE, WE'VE, I'VE BEEN TAKING NOTES AND WE, WE, I HEAR YOUR CONCERNS AND, AND WHERE YOU WOULD LIKE TO SEE ADDITIONAL INFORMATION AND, YOU KNOW, TO SAVE US FROM ME GOING THROUGH AN ENTIRE SCOPE OF WORK RIGHT NOW, I DON'T THINK YOU GUYS WANT TO SIT THROUGH THAT, BUT I'M, IT'S, I'VE GOT IT IN FRONT OF ME AND WE CAN CERTAINLY BRING A HARD COPY OF THAT AND SEND IT TO YOU GUYS IN ADVANCE OF THE NEXT MEETING, UM, AND GO OVER, YOU KNOW, MORE ABOUT THE RELOCATION PLAN, UM, SCOPE OF WORK AND, AND ANY OTHER CONCERNS THAT YOU MAY HAVE. 
          BUT, UM, YOU KNOW, IT, IF WE COULD, YOU KNOW, SEEK AN APPROVAL TODAY IF YOU ARE COMFORTABLE WITH IT, AND THEN STAY WITHIN OUR TIMELINE. 
          YOU KNOW, WE HAVE A VERY KIND OF REGIMENTED TIMEFRAME IN WHICH, YOU KNOW, WE NEED TO HIT COURT, UM, YOU KNOW, DIFFERENT MEETINGS AND EVERYTHING ELSE WITH THIS DEAL IN ORDER TO MEET OUR CLOSING TARGET LATER THIS YEAR, LET'S PUT, ARE 
          [01:35:01]
YOU IN A REFI SITUATION RIGHT NOW? OR WHAT'S, WHAT'S SET THE CLOSING TARGET? THE CLOSING TARGET IS NOVEMBER. 
          UH, WE ARE, WE ARE IN A BRIDGE DEBT SITUATION. 
          UM, SO WE, WE WOULD, WE WOULD CLOSE INTO A PERMANENT MORTGAGE WITH FREDDIE MAC. 
          I LOOK, IF THIS WERE TO GET APPROVED, I JUST TELL YOU RIGHT NOW, I THINK THERE'S SERIOUS CONCERNS FROM THIS BOARD. 
          UH, SO IT'S ONE OF THOSE, LOOK, I'M OKAY APPROVING IT. 
          JUST TELL YOU, THERE'S JUST A LOT OF WORK TO BE DONE IN THE MAIL. 
          YOU AND I'M, I CERTAINLY THANK THE PRICING AND THE ACQUISITION PRICE, THE PARTNERSHIP THAT WE'LL BE ENTERING INTO IS GONNA BE A MASSIVE, UH, DISCUSSION. 
          AND WE HAVE BEEN THROUGH THIS BEFORE AND WE DID SOME DEALS WITH A GROUP CALLED DEVCO, WHERE I LIVED TO REGRET THAT WE WENT OFF AN APPRAISAL, WHICH HAD A PROPERTY VALUE FORECAST, YOU KNOW, ABOUT TWO YEARS AGO, YOU KNOW, AND THERE WAS A MASSIVE SELLER NOTE DONE AFTER THAT. 
          SO THAT IS SOMETHING THAT'S GONNA BE A BIG PART OF DISCUSSION AS WELL. 
          SO THAT IS NOT FOR SURE. 
          I SURE YOU WE'RE NOT GONNA GO OFF ON APPRAISAL. 
          THAT'S OKAY. 
          SO THIS APPRAISAL DOES NOT, THIS APPRAISAL DOES NOT ALIGN WITH, WITH THAT, WITH THE FOUR CAP OR, UM, I UNDERSTAND, YOU KNOW, ANY, ANY OF THAT. 
          SO YOU GOTTA HEAR WHAT'S BEING TOLD TO YOU RIGHT NOW. 
          , THERE'S JUST THE, THE APPRAISAL, THERE'S OTHER FACTORS AND THAT'S, YOU'RE GONNA HAVE TO ACCEPT THE RISK THAT WE WILL NOT GO OFF THE APPRAISAL FOR THE ACT OF DISTRICT PRICE. 
          I'M TELLING YOU RIGHT NOW, HISTORICALLY, WHAT ON THE, WELL, HISTORICALLY WE'VE GONE ON THE APPRAISAL AND NOT RIGHT NOW, WE HATE IT BECAUSE UNDERSTOOD. 
          YOU BUY SOMETHING IN 2003 AND YOU MARK IT UP, YOU KNOW, X PERCENT, I MEAN, VALUES HAVE GOT DONE NOTHING BUT GONE DOWN. 
          AND THEN YOU HAVE A SELLER NOTE THAT FINANCED IT. 
          SO THAT MEANS IF YOU HAVE A SELLER NOTE THAT NEEDS TO FINANCE IT, IT'S NOT WORTH IT. 
          THAT'S WHAT A SELLER NOTE DOES. 
          SO THAT'S GONNA A PART OF THE DISCUSSION. 
          UNDERSTOOD. 
          UNDERSTOOD. 
          AND ONE MORE THING WHEN YOU COME BACK, I WANNA KNOW MORE ABOUT THE RESIDENTIAL SERVICES. 
          SOMETHING WE HAVEN'T TALKED ABOUT TODAY WAS REALLY LIKE YOUR PRESENTATION TODAY. 
          UM, I I JUST REALLY WANNA SEE LIKE WHAT THE, THE DAY-TO-DAY LIVES OF ARE THESE SENIORS THAT ARE LIVING THERE AND WHAT KIND OF SERVICES THAT YOU'RE PROVIDING. 
          YOU'RE ALL ABLE TO SEE THE, I GUESS Y'ALL ABLE SEE THE APPLICATION. 
          UM, THAT'S FINE. 
          WE HAD THE, YEAH, WE HAD TWO. 
          THERE'S, THERE'S, THERE'S VARIOUS DIFFERENT ACQUISITION PRICES ON THE APPLICATION, BY THE WAY, . 
          SO THAT'S ANOTHER THING THAT PROBABLY NEED TO TALK ABOUT. 
          WE CAN DEFINITELY GET ON THAT NEXT TIME. 
          THAT'S THE APPLICATION. 
          WELL, OKAY. 
          THEY GO AHEAD. 
          I ASKED WHAT THEY PREFER AND THEY SAID RATHER HAVE US VOTE TODAY THAN COME BACK NEXT MONTH. 
          SO I'M GONNA MOVE TO APPROVE THE SMITH. 
          I WILL SECOND. 
          ALL RIGHT. 
          SO, UH, WE HAVE A MOTION TO APPROVE BY DIRECTOR PERIN AND, UH, A SECOND BY DIRECTOR SADIE. 
          JACKIE, STILL ROLL CALL. 
          WAIT, CAN I ASK ONE MORE QUESTION? YEAH, GO AHEAD. 
          WHAT HAP I MEAN, IF YOU HAVE A, A DROP DEAD DATE WITH THIS BRIDGE LOAN OF NOVEMBER, WHAT ARE THE CHANCES THAT WE CAN GET A DEAL DONE BY THEN? WELL, THAT SEEMS THAT IS NOT, THAT, THAT IS NOT OUR DROP DEAD DATE. 
          THAT, THAT'S JUST OUR INTERNAL TARGET FOR RE SYNDICATION BASED ON THE MEETING TIMELINES WITH DISCORD AS WELL AS, UH, T-D-H-C-A. 
          GOT IT. 
          THANK YOU. 
          WHEN DOES THE BRIDGE LOAN EXPIRE? AND, I MEAN, I'M SURE THERE'S REMEDIES, BUT WHEN DOES IT EXPIRE? UM, WE TOOK OUT A FIVE YEAR LOAN IN 2023, SO TWO YEARS FROM NOW. 
          EXPENSIVE. 
          OKAY. 
          YEAH. 
          BUT YEAH. 
          WHAT, WHAT RATE IS THAT LOAN AT? SORRY, WHAT WAS THAT? WHAT'S THE RATE OF THE LOAN? LTV, CAN YOU JUST, I MEAN, WE NEED KNOW THE RATE OF THE LOAN. 
          YEAH. 
          UM, I WILL HAVE TO GO BACK AND LOOK. 
          IT WAS A FREDDY FACILITATED BRIDGE LOAN, BUT I'LL, I'LL, I CAN GO BACK AND CHECK 23. 
          ALRIGHT. 
          UH, JACKIE T YEP. 
          VICE PRESIDENT SEAN ALLEN. 
          AYE. 
          FAVOR, DIRECTOR DEWAN RUDOLPH. 
          UH, NONE IN FAVOR, NO TREASURER JACK MARSHALL SEAT. 
          UH, VOTE TO APPROVE, OBVIOUSLY WITH ALL THE QUESTIONS THAT IDIOT ANSWERED. 
          DIRECTOR PATTY COLLINS, APPROVE DIRECTOR KEVIN HINTON, ABSTAIN, DIRECTOR LESLIE ING THAT APPROVE PRESIDENT DAVID ELLIS, APPROVE DIRECTOR CLIFF FRIEDMAN, APPROVE DIRECTOR OLIVER ROBINSON. 
          NOT IN FAVOR, 
          [01:40:02]
DIRECTOR RYAN MOORE, APPROVED, OR SECRETARY TONY PAGE APPROVE. 
          AND DIRECTOR SEAN, I'LL GO ALONG WITH THE FAVOR RIGHT NOW. 
          THANK YOU FOR NOT MAKING ME DECIDING . 
          THAT'S, UH, SIX YESES AND FOUR NOS. 
          UH, I, ALRIGHT. 
          CONGRATULATIONS. 
           . 
          LET'S, UH, OKAY, LORD. 
          SO ACTUALLY, ACTUALLY, MY A I THINK WE'RE TABLING THAT ONE FIRST, RIGHT? YES. 
          OKAY. 
          WHICH ONE? UH, PAUL. 
          YEAH. 
          TABLE. 
          SO THEY'RE NOT BUT IT'S COMING BACK. 
          YEAH. 
          OKAY. 
          I CAN JUST DO THAT. 
          TABLE ONE. 
          THEY ELECTRIC FORWARD, SO. 
          OH, YOU DON'T HAVE TO ACT. 
          OKAY, WE DON'T HAVE TO ACT'S, GO TO SOMETHING EASY. 
          NINE. 
          RESOLUTION FOR HARFORD LIVING. 
          LOCATED AT 400 NORTH STREET FALL, SORRY. 
          NORTH FALLS STREET, DALLAS, TEXAS, AND THEN CONVERTED TO A MULTI-FAMILY RESIDENT EVENTUAL DEVELOPMENT. 
          A CONSIDER AND ADOPT A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING OF HARFORD LIVING. 
          LLC ARE DESIGNATED AFFILIATE FOR THE ACQUISITION FINANCING DEVELOPMENT OPERATION OF THE HARTFORD, WHICH WE CONVERTED TO A MULTIFAMILY RESIDENTIAL DEVELOPMENT FEE. 
          CONSIDER AND ADOPT A RESOLUTION PURSUANT TO SECTION 3 9 4 9 0 5 OF THE TEXAS LOCAL GOVERNMENT COURT REGARDING THE ANTICIPATED ANNUAL RATE REDUCTION OR THE HARTFORD GENERAL MANAGER, QUINTO PRESIDENT. 
          THANK YOU . 
          WHAT WE HAVE HERE, MR. BANS PRESENTATION THAT IS CONCERNING THE HARFORD. 
          WE HAVE HAD THIS PROPOSAL PENDING NOW FOR QUITE A WHILE. 
          IT'S GONE THROUGH, UH, A LOT OF DIFFERENT THINGS, INCLUDING THE LEGISLATIVE CHANGES. 
          IT'S REALLY SCREWED UP A LOT OF TIMING ON THIS. 
          UH, IT'S BEEN A LONG TIME WAITING AND NOW THERE'S A LOT OF NEW REQUIREMENTS AND WE HAD TO JI ALL OF THE MOU. 
          AND SO NOW WE'RE, WE'RE BACK. 
          AND I SPEND NICE ENOUGH TO COME AT 10% AGAIN. 
          SO I THINK THEY HAVE A SMALL PERCENT PACE TO KIND OF REFRESH EVERYONE'S MEMORY. 
          I KNOW WE HAVE A LOT OF NEW BOARD MEMBERS, UH, AND ON SCHEDULE. 
          SO MIKE, THANK YOU FOR, FOR COMING. 
          THANK YOU GUYS TODAY. 
          YOU GOTTA TURN OFF THE MIC TO YEAH. 
          THANK YOU FOR INVITING US TODAY. 
          UM, UH, THANK YOU BOARD MEMBERS. 
          SO WE HAVE A SLIDE DECK ON THE SCREEN. 
          UM, MYSELF AND JOHN WILLIAMS, WERE PART OF DEVELOPMENT TEAM THAT BEEN WORKING ON THIS PROJECT FOR THE PAST KIND TWO YEARS NOW, SINCE 2022. 
          AND NOW WE'VE GOING TO GO OVER A FEW SLIDES THROUGH  NOW, ALSO TALK ABOUT THE PROJECT. 
          GOOD AFTERNOON. 
          MY NAME IS JOHN WILLIAMS, AND AS I MENTIONED, THIS IS LIKE BS. 
          WE LEAD THE DEVELOPMENT EFFORTS OF THE 14TH STORY HARTFORD BUILDING IN DOWNTOWN DALLAS. 
          UH, DEAR MEMBERS OF THE BOARD, OUR COMMITMENT TO THE CITY, UH, COMES DOWN TO A TRIPLE BOTTOM LINE, EXCUSE ME, SOCIALLY, UH, WE ARE EMPOWERING CITY OF DALLAS BY PROVIDING HIGH QUALITY WORKFORCE HOUSING FOR THE PEOPLE THAT KEEPS THE CITY RUNNING ECONOMICALLY. 
          WE ARE TRANSFORMING AND UNDERUTILIZED BUILDING, UH, INTO AN ECONOMIC ENGINE THAT CREATES OPPORTUNITY FOR LOCAL RESIDENTS AND BUSINESSES. 
          THIS PROPERTY IS LOCATED AT THE INTERSECTION OF ST. 
          PAUL AND THE DAR STATION, THE ST. 
          PAUL DAR STATION, WHICH PROVIDES DIRECT ACCESS TO PUBLIC TRANSPORTATION. 
          AND OUR REDEVELOPMENT OF THE HARTFORD BUILDING WILL HELP CLEAN UP AND MAINTAIN THESE STREETS AROUND THE ST. 
          PAUL NORTH STATION. 
          AND THEN, OF COURSE, UH, THIRDLY, ECOLOGICALLY, UH, WE ARE RECYCLING AN EXISTING STRUCTURE. 
          SO WE'RE PROVING THAT MODERN LIVING CAN SEAMLESSLY MEET AFFORDABILITY AND ENVIRONMENTAL PRESERVATION. 
          NEXT SLIDE, LOCATED IN THE, IN DOWNTOWN DALLAS IS 217 UNIT MIXED USED WORKFORCE HOUSING DEVELOPMENT. 
          IT'S FULLY DE RISK AND READY TO MOVE. 
          UH, WE HAVE RECEIVED FULLY APPROVED CITY OF DALLAS BUILDING PERMITS. 
          OUR CONTRACTOR HAS COMPLETELY REBI THIS PROJECT, ENSURING OUR COSTS ARE A HUNDRED PERCENT UPDATED. 
          THEY DID THAT TWICE BEFORE THE PERMITS AND THEN ONCE AFTER THE PERMIT. 
          THIS MAKES, THIS ENSURES THAT WE'RE ALIGNED WITH ALL OF CITY OF DALLAS' REQUIREMENTS. 
          WE'RE, WE'RE NOT GUESSING THE NUMBERS WE'RE 
          [01:45:01]
COMPLETELY LOCKED THEM IN OFFICE TO RESIDENTIAL CONVERSION. 
          IT IS THE LARGEST GROWING SEGMENT IN MULTIFAMILY HOUSING. 
          AND DALLAS MARKS NUMBER FOUR, NATIONALLY. 
          UH, IT IS BACKED BY TEXAS'S ADAPTIVE REUSE LEGISLATION. 
          CAPITAL IS PLUG IT INTO THE SPACE, BUT REALLY EXECUTION IS EVERYTHING. 
          SOME ADAPTIVE REUSE PROJECTS, THEY FAIL, UH, DUE TO ZONING DELAYS AND UNPREDICTABLE COSTS. 
          AND WE'VE DESIGNED THIS HARD FOR A LIVING TO COMPLETELY BYPASS THIS, THOSE, UH, PITFALLS, FINANCIAL VIABILITY AND, AND THE CAPITAL STACK SAID, WHILE MANY PROJECTS FAILED BECAUSE OF THE GAP BETWEEN ACQUISITION AND CONVERSION, COST IS TOO WIDE. 
          THE HARTFORD LIVING UTILIZES A LAYERED CAPITAL STACK TO KEEP PROJECT FINANCIAL STRONG AND RENTS HIGHLY ACHIEVABLE. 
          NUMBER TWO, ENTITLEMENT RUNWAY AND ZONING WHERE OTHER DEVELOPERS FACE DEVASTATING AT TO 36 MONTH DELAYS, ZONING DELAYS. 
          WE HAVE COMPLETELY ELIMINATED THAT TIME ENTITLEMENT RISK BY SECURING THIS FULLY APPROVED CITY OF DALLAS BUILDING. 
          PERMIT NUMBER THREE IS THE, THE BUILDING TYPOLOGY IN THE ARCHITECTURE. 
          INSTEAD OF FIGHTING DEEP FLOOR PLATES AND SPIRALING CONSTRUCTION, UH, STRUCTURAL COSTS, OUR BUILDING FEATURES THE IDEAL ARCHITECTURAL FOOTPRINT, PERFECTLY OPTIMIZED FOR AN EFFICIENT RESIDENTIAL CONVERSION. 
          HARFORD BUILDING HAS WINDOWS ON ALL SIDES, WHICH ALLOWS EVERY UNIT TO HAVE A VIEW. 
          LASTLY, THE, THE MARKET DEMAND AND THE A MI ALIGNMENT, RATHER THAN TARGETING LOW ABSORBING LUXURY TIERS, ELIMINATE MARKET MISMATCH BY FOCUSING ON WORKFORCE HOUSING. 
          THIS IS THE HIGHEST DEMAND IN THE FASTEST ABSORBING RENTAL SEGMENT IN DALLAS. 
          THE HEARTFORD LIVING HAS THE PERMIT, IT HAS THE PRICING AND THE PURPOSE. 
          IT IS OUR SHARED RESPONSIBILITY TO MOVE FORWARD DALLAS FORWARD TOGETHER WHERE WE CAN BRING THIS VISION LIFE. 
          I'D LIKE TO BRING MY BAS HERE TO, TO COMPLETE THE REST OF THIS. 
          SO NEXT ONE. 
          YEAH, ON THE NEXT SLIDE, UH, WE TRY TO PLAY WITH THE CAPITAL STACK THAT'S VERY CONSERVATIVE RIGHT NOW. 
          OUR CONSTRUCTION DENSITY IS AROUND 47% ON COST. 
          AND, UH, AGAIN, UH, LIKE JOHN SAID, WE'VE BEEN WORKING ON THIS PROJECT FOR THE PAST TWO YEARS, SO WE HAVE A HUNDRED PERCENT COMPLETE TT AND, UM, ALSO FULLY BID OUT COMES WITH OUR CONTRACTOR, AND NOW WE HAVE A HISTORICAL TAX WITH, IN OUR CAPITAL STOCK RIGHT NOW, WE MONETIZING OUR TAX AROUND 93 CENTS ON THE DOLLAR. 
          RIGHT. 
          HOW MANY? 93 90 3 CENTS FROM THE DOLLAR. 
          AND THAT'S HELPING YOU ON THE NEXT SLIDE. 
          YEAH, THAT'S HELPING US, THAT'S HELPING US KEEPING OUR  47% LEVERAGE. 
          AND THAT AGAIN, IT'S GONNA BE A COMBINATION OF THIS SORT TAX RATE AND, UH, THAT WE TO THE TABLE. 
          UH, ON THE NEXT SLIDE HERE, IT'S A LIST OF TWO DIFFERENT PROJECT THAT'S BEEN AROUND HERE. 
          UH, THE SAME NATURE OF ADAPT REUSE. 
          AGAIN, IT'S ALMOST 3000 UNIT IN THE TOP LINE AND OUR OURSELF AS WELL. 
          WE HAVE MORE THAN 800,000 SQUARE FOOT OF ADAPT REUSE ACROSS THE COUNTRY. 
          UH, IF YOU SLIDE TO SEE, UH, ON THE NEXT SLIDE, AGAIN, ONE OF THE CASE STUDY, IT'S ONE OUR MOST ICONIC PROJECT. 
          YEAH. 
          NEXT SLIDE. 
          YEAH. 
          YES, SIR. 
          THIS ONE OF OUR COMPLETE PROJECT THAT WE'VE DONE IN CLEVELAND, THE AT T ORDER WAS VACANT FOR 10 YEARS. 
          UH, 600,000 SQUARE FOOT THAT WE TOOK FROM HOW THEY UTILIZED OUR OFFICE BUILDING INTO A MIXED USE APARTMENT BUILDING WITH ONE FOR RETAIL. 
          AND IF YOU GO ON THE NEXT SLIDE, YOU'LL SEE, UH, WE TOOK THIS BUILDING FROM INSTITUTIONALIZED, UH, OFFICE BUILDING. 
          UH, CALL THIS SLIDE. 
          YEAH, WELL INSTITUTIONALIZED OFFICE BUILDING. 
          AND WE CONVERT THE SAME OFFICE BUILDING IN 367 UNITS AND FULL DECK AS WELL. 
          AND THE LOBBY THAT'S PRETTY INVITING TO DOWNTOWN 10. 
          IT'S THE SAME STORY HERE. 
          WE TRYING WITH THE  LIVING THAT'S BEEN WANT TO UTILIZE FOR SO LONG. 
          AND IN THE BUILDING, IT'S, WE BE ON THE SMALL SIDE IN THIS ONE AND, UH, WE FEEL PRETTY GOOD ABOUT THE BUILDING. 
          AND, UH, WE, UH, TRY TO ACHIEVE 2017 UNITS WITH THE GOOD BETWEEN 60 AND 8% AND, UH, AROUND 10% OF THE UNIT WOULD BE MARKET. 
          UM, THAT'S THE END OF THE PRESENTATION. 
          BEFORE WE BEGIN OR START WITH QUESTIONS, WE HAVE THE, UH, NEW DEAL COMMITTEE, UH, LOOK AT THIS LAST WEEK AND THINK KIND OF SCRUTINIZED IN PRETTY GOOD DETAIL. 
          UM, 
          [01:50:01]
SO DIRECTOR JEAN, READ THE, UH, MARSHALL SEAT. 
          KIND OF WHAT WAS YOUR, WHAT WERE THE CONCERNS? WHAT WERE THE THOUGHTS? WHAT WAS, UH, MAYBE THE RESULT OF YOUR DISCUSSION? WELL, THERE WAS A LOT OF CONCERN ABOUT THIS DEAL. 
          SO I, I PERSONALLY, I GUESS I'M GONNA STICK WITH MY A HUNDRED PERCENT NEGATIVITY . 
          UM, I'VE DONE A LOT OF THESE DOWNTOWN DEALS. 
          MY, UH, ONE OF MY MAIN CLIENTS HAS REALLY DONE SEVERAL OF THE ONES YOU HAVE IN YOUR STACK, BUT THEY'RE NOT WORKING. 
          UM, DOWNTOWN IS SOFT. 
          UM, THESE, UH, THINGS ARE VERY EXPENSIVE TO REDO. 
          COSTS ARE VERY, VERY HIGH. 
          THESE DEALS WERE ALL LUXURY DEALS AND, AND, AND, AND HIGH RATES MARKET RATES. 
          AND THE NUMBERS STILL ONE'S GONE BACK TO , OTHER ONE'S FAILED OUT OF, UM, THEY, AND I, MY MY CONCERN IS THE COSTS JUST TOO HIGH TO TO, TO MAKE THESE THINGS WORK. 
          UM, THIS IS NOW, THIS BUILDING HAS BEEN SITTING EMPTY PLUS YEARS. 
          I KNOW MY CLIENT LOOKED AT IT 10 PLUS YEARS AGO. 
          AND BASICALLY THIS, THIS BUILDING, THIS BUILDING PART, UH, IF, UM, IF THIS THING WAS BEING GIVEN FREE, YOU KNOW, MAYBE THERE'S A POSSIBILITY. 
          I THINK THERE'S, WAS IT $13 MILLION OR $16 MILLION PURCHASE PRICE? SOMETHING LIKE THAT. 
          I THINK IN THERE, ADD ALL THAT, ADD ALL THE COSTS, ADD THE SOFTNESS OF DOWNTOWN. 
          YOU DON'T KNOW WHERE DOWNTOWN'S GOING. 
          UM, THEY'RE, THEY'RE, THE MARKET RATE YIELDS AREN'T, AREN'T FILLING UP. 
          UH, AND IT'S JUST SOFT AND IT'S JUST SEEMS IT'S THE LAW RIGHT NOW. 
          SO IT'S TOO EXPENSIVE. 
          FIND A, FIND A PIECE OF LAND AND GO FLAT TO TRY TO PUT ALL THE MONEY IN THERE AS THE NORMAL POSITIVE POLL. 
          UM, AND I RECOGNIZE THAT WE'RE ALREADY, YOU KNOW, I THINK WE'D ALREADY DONE AN MOU WITH YOU. 
          WE GOT, I  THIS WITH, I KNOW Y'ALL DONE A LOT OF WORK TO GET TO WHERE WE ARE TODAY. 
          AND IT'S KIND OF UNFORTUNATE THAT YOU'VE GOT A LOT OF, UM, ONE, WE'VE GOT THE HB 21 THAT CHANGES AND THAT ONE OF THE DISCUSSION POINTS WE HAD WAS, UM, THIS IS A WORKFORCE DEAL. 
          UM, IT'S NOT LITECH. 
          SO WE HAVE THE NEW REQUIREMENT OF THE, UH, RENT SAVINGS. 
          AND FROM WHAT I UNDERSTAND, ALTHOUGH I KNOW ERIN WAS ON VACATION, WASN'T ABLE TO BE ON THE CALL WITH US, UH, I THINK WE WERE GONNA HAVE SOME TROUBLE WITH HOW ARE WE GONNA MEET THAT REQUIREMENT. 
          UM, SO I THINK WE HAVE THAT ISSUE, BUT, AND THEN I THINK CLOSE POINT OF JUST THE ECONOMICS OF THE DEAL, IS THIS REALLY GONNA WORK? AND THEN THE THING THAT WE DON'T WANNA TALK ABOUT, BUT THERE'S JUST A LOT OF POLITICAL ISSUES ABOUT DOWNTOWN RIGHT NOW. 
          AND I'M NOT SURE, I THINK AS A, THE SUBCOMMITTEE WE TALKED ABOUT, I LOVE THE IDEA OF, OF OFFICE CONVERSION IN DOWNTOWN WORKING ON HOUSING IN DOWNTOWN. 
          I THINK IT'S PROBABLY JUST NOT THE RIGHT TIME GIVEN THE OTHER ISSUES THAT, THAT WE SAW. 
          SO THAT WAS THE GENERAL TAKEAWAY. 
          BUT, BUT WE ARE ONLY THREE PEOPLE. 
           JACK OR DIRECTOR MARSHALL SAY, DO YOU WANNA ADD IT TO ADD TO THAT? NO. 
          UM, BEFORE WE BEGIN, I GUESS A QUICK QUESTIONS. 
          YOUR LENDER ON ISSUE WITH THE 3 9 4 HSC WORKFORCE PARTNERSHIP. 
          IT'S LIKE THE FINANCING HAS BECOME REALLY UNSURE. 
          YOU KNOW, I'M NOT SURE AGENCIES ARE LENDING OFF OF, UH, YOU KNOW, HSC DEALS FOR STRAIGHT UP WORKFORCE. 
          WHO IS YOUR LENDER? WHAT IS THE, WHAT IS THE DEBT EXECUTION ON THIS PROJECT? WE HAVE, WE HAVE RESOURCE FINANCING FROM THE LOCAL BANK. 
          UH, , THE SAME CONSTRUCTION LOAN. 
          WE TRANSFERRED INTO TERM, INTO LONG TERM FINANCING, REFINANCING, IT'S THAT SAME BANK, IT'S THE SAME LENDER. 
          SO WHO IS THE LENDER? SO RIGHT NOW I'M JUST TRYING TO KEEP THE NAME PRIVATE, BUT UH, LIKE, UH, IT, IT'S OUR CONNECTION. 
          UH, IT'S ENTERPRISE BANK ACTUALLY. 
          SO YOU HAVE A CONSTRUCTION THAT'S CALLED FROM DAY. 
          YOU HAVE A COMMIT. 
          YOU HAVE A COMMIT, UH, QUESTION. 
          SO WE HAVE THAT BIG INTO OUR, I GUESS THE REAL BIG QUESTION I HAVE IS WHY DIDN'T YOU GO TO THE PFC FOR THIS? THE OWNERSHIP STRUCTURE IS WAY MORE SIMPLER THAN OURS. 
          THE FINANCING IS WAY, I MEAN, IT'S MORE FINANCEABLE, YOU KNOW, THERE'S NO PUBLIC BENEFIT TEST, ANNUAL PUBLIC BENEFIT TEST. 
          THE EXECUTION OF TAKING A DOWNTOWN TOWER AND CONVERTING TO RESIDENTIAL. 
          TO ME IT JUST MAKES WAY MORE SENSE FOR THE PUBLIC FACILITY CORPORATION AND THE HC. 
          WHY DID YOU COME TO UP, WHY HAVE THE CON I KIND OF ASKED THIS OF STAFF, I'VE ASKED THIS OF EVERYBODY, WHY IS THIS BEFORE OUR TABLE AS OPPOSED TO THE PFC? AND IT MADE NO SENSE TO ME. 
          MAYBE, I THINK PREVIOUS TO HB 21 
          [01:55:01]
IT WAS MORE ATTRACTIVE. 
          BUT I THINK FC HAS, WELL THIS, THIS IS NOT REALLY AN ACQUISITION. 
          RIGHT, BUT IN TERMS OF, BECAUSE THEY ALREADY OWN THE BILL, IT NO, IT'S NOT A, YOU NOT MULTIFAMILY RENOVATING, YOU'RE CONVERTING PERSPECTIVE OF WHAT THE PFC BOARD DOES. 
          I THINK THE TERMS INITIALLY WHEN WE STARTED TALKING ABOUT THIS WERE FAVORABLE WITH THE H FFC. 
          OKAY. 
          IT'S BEEN A LONG TIME. 
          I, YEARS, YEARS, SO I, A LOT HAS CHANGED. 
          YOU KNOW, LIKE, LIKE JUST GO AT IT. 
          EVERYBODY, AARON, CAN, CAN YOU SPEAK TO KIND OF FROM OUR PERSPECTIVE, WHAT OUR ROLE IS IN TERMS OF ANALYZING THE DEAL? MY UNDERSTANDING THAT WE'RE TYPICALLY WE'RE CONCERNED WITH WHAT OUR BOARD RISK IS IN ENTERING INTO A DEAL AND LESS ABOUT TRYING TO FEEL OUT WHETHER OR NOT IT'S GREAT FOR THEM IN THE LONG RUN. 
          I KNOW WE HAVE A RESPONSIBILITY TO BE RESPONSIBLE AND STEWARD MONEY APPROPRIATELY, BUT TO WHAT EXTENT IS THE UNCERTAINTY OF DOWNTOWN THEIR RISK TO BEAR? AND IT DOESN'T HAVE ANY EFFECT ON HOW WE PARTICIPATE IF YOU, I MEAN, IT'S A TOUGH QUESTION TO ANSWER, RIGHT? I THINK OBVIOUSLY CLIFF HAS A POINT, YOU KNOW, WE DON'T WANNA GET INTO A DEAL THAT IS GOING TO FULL FAIL. 
          WE DON'T KNOW IF IT WILL OR IF IT WON'T, BUT YOU CAN ONLY MAKE A DECISION BASED ON THE INFORMATION YOU HAVE, RIGHT? UH, NOW WOULD WE BE LIABLE FINANCIALLY? NO. 
          THAT'S HOW OUR AGREEMENTS ARE SET UP. 
          BUT THERE'S THAT OTHER PIECE OF THE MAJORITY OF THE RISK, RIGHT? BUT I WILL SAY THERE'S A CLEAR DISTINCTION BETWEEN A LUXURY HIGH-END APARTMENT THAT'S TRYING TO GET $4 SQUARE FOOT RENTS VERSUS WHERE THEY'RE AT. 
          CERTAINLY GO TO PUBLIC DEBT BENEFIT. 
          WE HAVE TO SEE WHERE THE DIFFERENCE IS ACTUALLY GONNA BE OVER TIME. 
          THAT'S SOMETHING THAT YOU GUYS CAN BE CONSIDERED AS WELL. 
          UH, BUT THERE'S A REAL NEED FOR WORKFORCE HOUSING IN DOWNTOWN, ANYWHERE IN THE CITY. 
          BUT PARTICULARLY IN DOWNTOWN, MOST OF THE STUFF THAT'S BUILT IS LUXURY. 
          YOU'RE TALKING ABOUT MOUNTAIN PLACE, YOU'RE TALKING ABOUT, UM, YOU KNOW, THE STUFF THAT'S BEING BUILT BY  PARK, THE ATELIER, BUT THOSE ARE INCREDIBLY EXPENSIVE APARTMENTS THAT 99% PEOPLE CAN NEVER, EVER AFFORD, RIGHT? UM, AND SO I THINK IT'S A LITTLE BIT OF A FALSE EQUIVALENCY. 
          I ALSO SEE THE STORY OF DOWNTOWN IS A RESIDENTIAL STORY. 
          MORE PEOPLE ARE MOVING THERE, THERE'S 15,000 RESIDENTS. 
          THE GOAL IS TO HAVE IT UP TO 30,000 IN THE NEXT DECADE OR TWO, RIGHT? I MEAN, I'D RATHER BE PART OF THE SOLUTION AS OPPOSED TO JUST LAMENTING THE OFFICE AGENCIES. 
          BUT THIS DOES HELP SOLVE SOME OF THE OFFICE AGENCIES. 
          HECK, I MEAN, YOU'RE TAKING 170,000 SQUARE FOOT BUILDING AND CARVING IT UP INTO 217 UNITS, WHICH IS A PRETTY GOOD UTILIZATION COMPARED TO WHAT I'VE SEEN. 
          I MEAN, THE BIGGEST ISSUE WITH THE CONVERSIONS IS COURSE THE COST, BUT THE TWO ALL LOSS SQUARE FOOTAGE, RIGHT? I MEAN THE REASON THEY CAN'T DO BRIAN TOWER IS YOU ONLY GET LIKE 60% OF THE SQUARE FOOTAGE. 
          THAT BUILDING IS BASICALLY WORTHLESS. 
          BUT THIS ONE, YOU KNOW, THE 1950S BUILDING WHERE YOU CAN GET MOST OF THE SQUARE FOOTAGE INTO APARTMENTS, WHICH IS A UNIQUELY GOOD STORY. 
          I MEAN, THEY PUT TWO YEARS INTO IT. 
          UH, I'M INCLINED TO, TO TRUST THAT THEY'RE, YOU KNOW, THEY'VE DONE TWO YEARS WORTH OF WORK. 
          THEY WOULDN'T BE HERE IF IT WASN'T A SENSIBLE DEAL FOR THEM. 
          AND THERE IS A NEED. 
          CAN I ASK A MAYBE DETAILED QUESTION? IN THAT HARD COST BUDGET, HOW MUCH MUCH CONTINGENCY DO YOU GUYS HAVE ABOVE WHAT YOUR CONTRACT CAME BACK IN RIGHT NOW?  INVESTOR, UM, REQUIRED 5% CONTINGENCY, BUT WE HAVE THE ABILITY 7% CONTINGENCY ON OUR, YEAH, I, I I'VE LOOKED AT A FEW OF THESE CONVERSIONS IN MY CAREER AND THEY'RE JUST SO EXPENSIVE IN ALL THE SURPRISE YOU FIND THAT THAT CONCERNS ME. 
          BUT WE, YOU KNOW, ON A NORMAL PROJECT GROUND UP, WE'RE USUALLY PUTTING 10, 12% ON THE PROJECT CONTINGENCY. 
          I WOULD THINK YOU WANT 15, 20% ON A DEAL LIKE THIS. 
          BUT AGAIN, THIS, THIS IS Y'ALL'S DEAL AND YOU'VE BEEN WORKING ON IT. 
          SO MAYBE THAT'S REFINED AND GOOD. 
          UH, I DON'T KNOW. 
          SO WHAT WE'VE DONE WHILE WE'RE WAITING ON, ON, ON, ON THE NEW LOG PASS, WE'VE DONE SELECTING DEMO ON THE EIGHT EIGHT FLOORS WHERE WE DEMOTION AND TYPE FLOOR. 
          SO WE SEE WHAT'S BEHIND THE WALLS. 
          AND THEN WE ARE, WE ARE BRINGING ALL THE STUFF ON  OVER THERE TO MAKE SURE WE ACTUALLY BUILD UNITS. 
          AGAIN, WE, WE, WE SPEND A LOT OF TIME ON THE SCENES TO MAKE SURE OUR COSTS ARE ACCURATE. 
          YOU KNOW, WE HAVE MULTIPLE FIVE LEADERS THAT CAME TO US. 
          WE LOCKED ALL THIS PRICES TO MAKE SURE WE CAN BUILD THIS, UH,  AND, UH, WE, AND AGAIN, TO ADDRESS SOMETHING ABOUT THIS BUILDING HAS NOT BEEN VACANT IN FOR 15 YEARS. 
          SO THE, THE STORY OF 
          [02:00:01]
THE PREVIOUS TRIED TO STABILIZE THIS BUILDING AS AN OFFICE BUILDING BUT DID NOT WORK. 
          SO THEY, THEY END UP, IT TOOK, UM, ALAN  EQUITY TO TRY TO RENOVATE THE BUILDING AS AN OFFICE, BUT THEY DIDN'T ATTRACT ANY OFFICE TENANT, UH, TO BE ABLE TO STABILIZE THIS OFFICE. 
          SO WHEN WE, WE, UH, WE, WE BOUGHT IT LIKE A FEW YEARS BACK. 
          YOU KNOW, THE BUILDING WAS AROUND THAT 40%, 45% ARGUMENT. 
          SO IT WAS NOT MADE YOU OWN IT NOW? HUH? YOU OWN IT NOW? YEAH. 
          OH, OKAY. 
          I'VE OWNED IT FOR A WHILE, BUT YEAH, WHILE, OKAY. 
          AND THAT'S GOOD. 
          THAT'S THE WAY TO MITIGATE SOME OF THAT RISK IS YOU CAN GET IN THERE AND TEAR SOME BALLS OUT AND SO IT'S GOOD, BUT THEY'RE JUST INCREDIBLY EXPENSIVE FROM WHAT I'VE SEEN. 
          AFTER ALL THIS INCENTIVES ARE, UH, ACTUALLY INVESTOR THAT HELPING US MAXIMIZE EQUITY ARE PART COST PER UNITS TAKING DOWN ALL BOOKS, INCENTIVES COMING AROUND 178,000 PER UNIT. 
          AND UH, THIS IS OUR TRUE COST FOR THAT. 
          WE HAVE. 
          YEAH, THAT'S INCREDIBLE. 
          THAT'S BETTER THAN WE'RE DOING ANY OTHER DEALS ALONE. 
          AND DO I UNDERSTAND MO YOU CORRECTLY THAT THE FIRST FLOOR RIGHT NOW IS A RESIDENTIAL SPACE? YEAH, SO WE UH, BUT COULD BE CONVERTED TO SOME KIND OF CONDO SITUATION SO THAT IT COULD BE RETAIL AND THEN WE COULD WASN'T THAT THE HEALTH STUFF BEFORE, FROM THE BEGINNING? SO WE REMOVE THAT PART. 
          LOCAL REGIONAL PLAN WHERE WE CAME HERE, WE WANTED TO KEEP THE FIRST PART OF THE RETAIL. 
          THESE NEW MU IS GONNA BE HUNDRED PERCENT RESIDENTIAL AND THE FIRST FLOOR BE ON, WE PUT A C ALL HAVE FINANCIAL CLASSES, FIRST FLOOR. 
          IS THERE ANY, IS THERE ANY CONCEPT OF, OF SEPARATE OWNERSHIP OF THIS STUFF? CONING AND TRYING TO, BECAUSE I KNOW THAT'S IN THE PREVIOUS ONE I WORKED ON WITH HISTORIC TAX CREDITS THAT KEPT THE HISTORIC TAX CREDIT COMPLIANCE PERIOD. 
          KEPT ANY OF THAT FROM MAYBE IMPLEMENTATION. 
          NO, WE HAVE HUNDRED PERCENT. 
          THIS QUESTION FOR AARON, UH, I SAW THE PORTION OF THE MOU OR MAYBE THAT TALKED ABOUT, UH, CONSERVATION OR OTHER COLLECTIONS FOR SEWAGE WATER, SOMETHING LIKE THAT. 
          DOES THAT APPLY TO DBI AND THE DOWNTOWN PIT? ARE THEY STILL SUBJECT TO THAT SPECIAL ASSESSMENT? CAN YOU ELABORATE? DBI DALLAS, DOWNTOWN DALLAS INC. 
          DOWNTOWN. 
          DOWNTOWN DALLAS. 
          DALLAS. 
          MM-HMM . 
          YEAH, YOU PROBABLY HAVE TO PAY THAT. 
          PROBABLY YOUR TAX. 
          EXACTLY. 
          WELL IF IF WE TAKE OWNERSHIP OF A BUILDING, IT'LL BE A HUNDRED PERCENT TAX EXEMPT. 
          SO THEY WON'T BE GIVING, NO ONE WON'T BE GIVING ANY, YOU WOULDN'T HAVE TO PAY INTO THIS. 
          SEE THAT'S, I I THINK IT'S, I THINK IT'S CONFUSING BECAUSE IT'S NOT A TAX ASSESSMENT BASED OFF OF YOUR TAX REVENUE. 
          AND SO THAT'S WHY I WANNA BE CLEAR IN THE MOU SO THAT IT, IT'S NOT BEING USED AS A, A WAIVER OF THAT. 
          I I I JUST YOU'RE SAYING YOU WANT YEAH, I WANT TO, I DON'T WANT TO TAKE IT OFF. 
          OKAY, GOTCHA. 
          YEAH, I MEAN IT'S NOT THE TAX ROLL FOR 4 MILLION BUCKS. 
          RIGHT? I I THINK THAT WAS SOMETHING WE WERE GONNA DO. 
          WHICH THAT ONE DEAL CLOSED, BUT THAT WAS AN ISSUE THAT BECAUSE OF THE EL RIGHT? DID THERE, I'M NOT GONNA, SORRY ABOUT THE TAX EXCEPTION. 
          UH, BRIAN, IS THAT SOMETHING WE CAN INCLUDE I GUESS, IN THE  OR WE CAN DISTRIBUTE IT ON DOCUMENTS? UH, I THINK, I THINK WE WOULD, IF IT GETS APPROVED, IT'S APPROVED SUBJECT TO THAT CHANGE. 
          YEAH. 
          IT USUALLY JUST SHOWS UP AS A SPECIAL DISTRICT IN YOUR TAX FOLDER. 
          LIKE CALL WHAT? NO, IT'S, I JUST WANNA MAKE SURE WE'RE NOT D KNOW YOU HAVE YOUR CITY AND YOUR COUNTY AND YOUR POSSIBLY NEW SCHOOL SPECIAL DISTRICT. 
          YEAH, YEAH, THAT'S FINE. 
          YEAH. 
          YEAH. 
          WE CAN LOOK IT UP. 
          THE DDI PROPERTY. 
          CAN I ASK A QUESTION TO YOU, BREX, SINCE, UM, SO I KNOW WE TALKED ABOUT IT ON OUR COMMITTEE CALL ABOUT THE RENT SAVINGS AND SOME CONCERN ABOUT IF, IF THIS MEET THAT TEST. 
          AND MY QUESTION IS IF, IF WE FEEL LIKE IT CAN, BASED ON WHAT Y'ALL DISCUSSED SO FAR, AND IF IT CAN'T LIKE WE MOVE FORWARD, BUT THE STEEL NET DOESN'T, THEN WHAT HAPPENS THAT, IS THAT A US RISK? A THEM RISK OF BOTH OF US RISK? I MEAN HOW DOES THAT WORK? WELL, SO BRIAN, WE MIGHT WANNA TAG TAKE 
          [02:05:01]
BEYOND THIS 'CAUSE WE HAD THE UNDERWRITING REPORT THAT HAS TO BE POSTED PRIOR TO LIKE FINAL APPROVAL, WHICH THAT'S STILL BEING DRAFTED. 
          SO AS OF LAST WEEK WHEN WE SPOKE AT REAL ESTATE COMMITTEE, THE, THE DRAFT UNDERWRITING REPORT WAS SHOWING THE AVERAGE UNITS HAD TO BE AT LEAST 18.5% MARK DOWN FROM THE, THE MARKET RATE UNITS AS SHOWN IN THE, IN THE DEVELOPER'S PROPOSAL. 
          I'M STILL WORKING WITH FIRST HOUSING ON THAT TO, TO SEE IF THAT IS ACCURATE. 
          'CAUSE THEY'RE ALSO KIND OF WORKING BACKWARDS TO SEE JUST DIRECTLY AGAINST THE DEVELOPER'S PROPOSED RENTS AND THEY'RE STATING THAT THOSE PROPOSED RENTS TO DON'T MEET THE QUALITY, UH, THE 50% REQUIREMENT AS OF YES. 
          THAT WAS YESTERDAY AFTERNOON WAS THE LAST I'VE HEARD BACK. 
          SO I DUNNO HOW WE, I GUESS SO, LIKE, I KNOW IT'S ALL NEW AND WE'RE WORKING IN THIS NEW ENVIRONMENT, BUT LIKE, HOW DO WE MOVE FORWARD WITH IT? SO, I MEAN, BRIAN, WE, IF WE PRELIMINARY APPROVAL TO MOVE FORWARD WITH THE MOU AND THEN COME BACK. 
          YEAH. 
          I MEAN, COME BACK. 
          FINAL STATUTE JUST REQUIRES A PRIOR TO FINAL APPROVAL. 
          THE UNDERWRITING REPORT HAS TO BE AVAILABLE AND POSTED. 
          THIS IS NOT FINAL APPROVAL. 
          UM, OBVIOUSLY WOULD'VE BEEN IDEAL TO HAVE THAT. 
          AT THIS POINT WE DON'T. 
          SO YEAH, THERE'S, YOU KNOW, TWO WAYS OF DOING IT. 
          JUST SIMPLY DELAY UNTIL THAT'S READY. 
          OR JUST KNOW THAT SUBJECT TO THAT REPORT COMING BACK SPITE OR IT WILL NEED TO BE AVAILABLE AT POST. 
          UM, TONY JOHN? YES. 
          . 
          I SAY SOMETHING RIGHT NOW, SIR. 
          SPEECH I YOU'VE ALREADY SAID LIKE, SEAN, WHERE'S THE WISDOM? YEAH, NO, NO, WE DON'T. 
          UH, I MEAN THERE IS LIKE FOR THREE NINE BOARDS, THERE ACTUALLY ARE CURRENT FINANCING OPTIONS. 
          IT'S JUST WHETHER THEY'RE GONNA WRITE THE TAX EXEMPTION OR NOT. 
          YOU KNOW, YOU COULD PROBABLY GET A LOAN. 
          IT'S LIKE, WELL WE'RE GONNA UNDERWRITE HUNDRED PERCENT OF THE TAXES AND WE'RE NOT GONNA GET CREDIT FOR IT. 
          SO THERE ARE, YOU KNOW, THERE ARE FINANCING OPTIONS. 
          IT'S JUST, JUST TO GIVE YOU THE CREDIT FOR THAT. 
          UM, YEAH, I MEAN, I GUESS I'M TORN A LITTLE BIT. 
          IT'S LIKE, LOOK, WHAT DOES THE HSC LOOK, I'M GONNA BE HONEST WITH YOU. 
          CALL ME LATER. 
          I MAY BE BRINGING ONE HELL OF A RISKY DEAL NEXT MONTH. 
          UH, IT'S A HECK OF A STORY  AND IT'S GONNA BE A STRAIGHT UP WORKFORCE PROJECT. 
          UH, SO IT'LL BE A HUM DINGER. 
          SO IT'S NOT AS IF I'M NOT, YOU KNOW, GONNA BE BRINGING SOMETHING BEFORE THIS BOARD, BUT IT'S GOTTA A, YOU KNOW, A DEATH OF PUBLIC PURPOSE. 
          IT'S VERY UNIQUE. 
          UM, YOU KNOW, WHAT DO WE DO WITH DOWNTOWN? YES. 
          CAN, CAN I JUST CLARIFY ON ONE, I DIDN'T UNDERSTAND THIS. 
          SO THE, THE PURCHASE PRICE THAT I SAW IN THE PRESENTATION, THAT THAT WAS ALREADY PAID. 
          YOU ALREADY OWNED IT. 
          YEAH. 
          I, AND, AND THEN SO IS YOU DEVELOP YOUR BUILDING , WHAT FEES DID YOU PULL OUT? WHAT ARE THE DEVELOPER FEES? AND WE SAID, YOU WANNA TRY TO LOOK AT THE SPREADSHEET? EVERYTHING WAS CROSSED OUT. 
          WE KNOW WE WANT 5%. 
          AND THE DEVELOPER, UM, AGAIN, WE, WE, WE ALSO HAVE A PORTION OF THAT BROKER B2B. 
          YEAH. 
          WE ARE ON THAT TOP. 
          SO IS THE, IS THE PARTNERSHIP, IS THE GROUP THAT OWNS IT NOW, THE ONE WHO'S GONNA DO THIS? OR IS THERE A SALE TO A NEW ENTITY OR THERE'S SOME CAPITAL. 
          EITHER SOME PROFIT OR SOME EQUITY TAKEN OUT ON THE TRANSACTION. 
          ALL THE EQUITY, THERE'S NO , NO PROCEED. 
          IT ALL STAYS IN EVERYTHING. 
          SO, SO PURCHASE PRICE, WHAT YOU GUYS PAY ON YOUR SETTLEMENT STATEMENT. 
          YEAH. 
          EVERYTHING SAY INTO THE DEAL. 
          WELL, YOU'RE PARTNERING WITH A HOSPITALITY THAT PURCHASED IT. 
          CORRECT? THAT'S WHAT THAT'S KIND OF WHAT I'VE READ THIS WHOLE THING. 
          YES. 
          THE HOSPITALITY, HOSPITALITY GROUP BOUGHT IT. 
          YOU'RE PARTNERING WITH THEM. 
          THEY'RE CONTRIBUTING THE BUILDING TO THE PARTNERSHIP. 
          YOU'RE DEVELOPING IT. 
          BUT THERE IS THAT WHAT THE VALUE WHICH YOU'RE CONTRIBUTING TO THE PARTNERSHIP IS WHAT THEY PAID FOR IT. 
          CORRECT? THAT'S CORRECT. 
          MARKET VALUE. 
          WHAT THEY, THAT'S BETTER. 
          YEAH. 
          MARKET JUST SAW THAT'S OKAY. 
          WHAT WAS THE PLAN ORIGINALLY WITH THIS HOSPITALITY GROUP THAT BOUGHT, THEY WAS TRYING TO CONVERT THESE THINGS TO A HOTEL. 
          RIGHT? THAT DIDN'T WORK. 
          OKAY. 
          AND WHO IS YOUR PART? WHO IS THE HOSPITALITY? UH, HOSPITALITY AND, UH, OLY. 
          UM, YEAH, KIND OF GETS INTO, YEAH, DOWNTOWN IS NOT THE BEST STORY  IN THE WORLD AT THE MOMENT. 
          BUT WHAT IS THE HSC DIGITAL? I'M A LITTLE BIT TORN. 
          I DON'T WANNA STEP INTO THAT SITUATION. 
          'CAUSE LOOK, 
          [02:10:02]
YOU KNOW WHAT ELSE IS, WHAT ELSE IS GOING ON? MORE QUALITY OPEN. 
          WE'RE GONNA STEP INTO, YOU KNOW, MEAN IT'S TOUGH. 
          UH, BUT WHAT, WHAT ARE WE HERE TO DO? YOU KNOW? DO WE TAKE MORE RISKS THAN AN OTHERWISE MARKETING GROUP? 'CAUSE WE ARE A PUBLIC ENTITY AND WE DO WANT TO HELP, UH, REVITALIZE DOWNTOWN, YOU KNOW, BRINGING MORE FOOT TRAFFIC TO AN AREA. 
          BUT DOES THIS DO IT? I DON'T WANT, BUT WHAT RISK ARE WE TAKING? WELL, THAT'S WHAT I'M TRYING TO, WE'RE THE, WE'RE STILL THE GPS OF THE DEAL THAT YOU JUST CANNOT TELL ME. 
          YEAH, WE'RE IDENTIFIED. 
          WE TRANSFER THIS TO THE . 
          I MEAN, WE'RE THE LANDOWNER TO THE GP. 
          WELL TELL YOU THAT THERE'S NOT SOME RISK. 
          I MEAN, NO, NO OFFENSE. 
          THE DEVELOPER LEADS RISK IS NOTHING ELSE. 
          THAT'S ONE. 
          I I WOULD SAY THAT THAT'S, THAT'S OUR BIGGEST RISK BECAUSE IF THIS BOARD EVER GETS A BAD REPUTATION, YOU CAN SAY GOODBYE TO GETTING A COUNSELOR. 
          I WOULD, I WOULD DISAGREE WITH THAT. 
          THERE'S ONE LITTLE, THE ONE LITTLE THING THAT KIND OF COMES TO ME TO MIND IS PROVIDENCE MOCKINGBIRD TOWER. 
          OKAY. 
          ANYWAYS, SO, YOU KNOW, WE, WE OFFERED TO CLOUD PARTNERSHIP. 
          I FIRST CAME ONTO THE BOARD AND I ASKED MYSELF, WHERE THE HECK IS THE SPONSOR TO THIS DEAL? IT WAS JUST THE TAX CREDIT INVESTOR. 
          AND WE, OUR GROUP WAS MANAGING THE DEAL. 
          WE WERE THE ASSET MANAGER. 
          THE G THE ACTUAL SPECIAL LIMITED PARTNER WAS THE SPONSOR. 
          THEY JUST PULLED, WELL, WHO'S LEFT HOLDING BACK? WELL, IT'S THE GP AND THE LANDOWNER, THE DEAL. 
          SO, YOU KNOW, I THINK THERE'S MORE RISK TO AN HSC THAN THERE IS ACTUALLY TO PFC BECAUSE THEY'RE NOT THE GENERAL PARTNER AND THEY OWN THE LAND IMPROVEMENTS. 
          BUT IT'S A STRAIGHT UP LEASEHOLD. 
          SO, I DUNNO, IT'S JUST, LOOK, I'M TORN. 
          I MEAN, LIKE, I, I WANT TO HELP DOWNTOWN. 
          I I, I WANTED, I WANT THIS TO BE A GOOD PROJECT. 
          I CERTAINLY UNDERSTAND THE RISKS, BUT JUST CERTAIN RISKS TO THIS THING THAT I'M JUST HAVING A HARD TIME  WITH RIGHT NOW. 
          I, I'M, YOU KNOW, IT'S FUNNY BECAUSE I'M COMING THE OTHER DIRECTION. 
          , I'M ACTUALLY STARTING TO GO THE OTHER WAY A LITTLE BIT. 
          AND THAT IS . 
          YEAH, I KNOW LESLIE SHOW THIS. 
          HERE'S SO FOR ME, IF, IF YOU ALREADY OWN THE PROJECT AND YOU, YOU BOUGHT WHATEVER YOU BOUGHT IT FOR YOUR EQUITY'S IN YOUR DEBT'S, IN WHATEVER, IT'S, IF YOU'RE NOT PULLING ANY MONEY AS, AS, AS PART OF A MARKUP AND, AND, AND PUTTING IT IN AND ALL THAT EQUITY STAYS IN, YOU'RE BRINGING IN NEW FINANCING. 
          UM, AND, AND YOU'RE GONNA GET SHORT TAX CREDITS. 
          UM, AND OUR OWN ONLY ROLE ON HERE IS, IS THAT WE'RE DOING THE TAX ACCEPT STRUCTURE. 
          UM, IF WE'RE COMFORTABLE WITH THE NUMBERS AND COMFORTABLE WITH ALL THAT, I'M, I'M, I'M PROBABLY MORE INCLINED TO TAKE, TAKE THE RISK AND THAT THE DOWNTOWN DOES NEED THIS. 
          AND IF, IF THEY CAN GET THIS DONE AT THE RIGHT PRICE, AS LONG AS AS LONG, YOU KNOW, AT A PRICE THAT, THAT THEY FIGURED OUT AND WE'RE COMFORTABLE THAT WE DON'T HAVE TO SUBSIDIZE, GIVE YOU THIS. 
          AND IF THERE'S A BUST ON THE PRICE, THAT'S THE LENDER'S, UH, CONCERN. 
          NOT, NOT OUT. 
          WHAT ARE YOU DOING? HOW ARE YOU BRIDGING THE, THE HISTORIC TAX CREDIT MONEY. 
          'CAUSE THAT WON'T COME UNTIL IT'S PLACED IN SERVICE THE SAME. 
          SO IT'S ONE STOP SHOPS CONSTRUCTION. 
          OH, ENTERPRISE. 
          IT'S THAT ENTERPRISE. 
          THE, BUT THEY'LL, IN ADDITION TO BRIDGING THE CONS, THEY'LL DO THE CONSTRUCTION LOAN. 
          THEY'LL ALSO BRIDGE THE HISTORIC TAX CREDIT. 
          SMALL. 
          YEAH. 
          'CAUSE THAT USUALLY DOESN'T COME INTO A PLACE IN SERVICE, WHICH IS AFTER IT'S YEAH. 
          HOW MANY OFFICE CONVERSION DEALS IN DOWNTOWN COULD WE POINT TO THAT WERE SUCCESSFUL? ONE MAIN PLACE? YEAH. 
          MAIN ONE. 
          MAIN PLACE. 
          THAT'S VERY EXPENSIVE RENT. 
          THAT'S PUBLIC BANK. 
          YEAH. 
          PUBLIC STUDIES. 
          YEAH. 
          AND THE OLD POST OFFICE CABLES, I GUESS WAS WHAT POST OFFICE? MY CLIENT TOO. 
          THAT'S THE FIRST ONE. 
          DID   HAS COMPLETE ALMOST 20. 
          THERE'S ANOTHER PORT DEAL ON PAUL  ENERGY PLAZA. 
          RENAISSANCE ENERGY PLAZAS HAVE ITS ISSUES. 
          THAT'S HALF OFFICES. 
          RIGHT. 
          AND WE ALSO, UM, HAVE ONGOING CONVERSATION WITH DHC ABOUT THE BULK PROJECT VOUCHER. 
          YOU KNOW, THE COMPETITION DOING PRETTY WELL TO BE  YOU SAY WALKER? WALKER? THE DH A'S GOT THE WALKER VOUCHERS IN THERE. 
          YEAH. 
          SO WE, WE TALKING WITH THEM. 
          SO THEY FEEL PRETTY GOOD ABOUT THIS PROJECT TO, TO THE WALKER CASE SPECIAL ABOUT, WELL, IS THERE A WAY THAT, SO WALKERS ARE THOSE PROJECT BASED? YEAH. 
          HOW MUCH, HOW MUCH COULD BE PROJECT BASED? RIGHT NOW? THE AROUND 65, 60 5% PROJECT BASED. 
          [02:15:02]
WHAT DO YOU DO WITH PARKING HERE? WE PARK. 
          YEAH, SO WE HAVE A, THE PARKING, THERE'S A UNDER WHAT'S KIND THE RATIO SPOTS PER UNIT OR, SO RIGHT NOW WE HAVE JUST ONE AT 50 SPACE MORE THAN, SORRY, HOW MANY UNITS IS THIS AGAIN? 2 2 2 70. 
          YOU GOT 2 17 2. 
          IS THAT PARKING GARAGE CONNECT TO THE ONE DALLAS CENTER PARKING GARAGE? IS THAT KIND OF CONNECTION TO YEAH, IT IS OUTSIDE . 
          I MEAN, IT'S A REALLY NEAT LOCATION, RIGHT? IT'S RIGHT ON. 
          OH NO, WELL IT'S ON DARK. 
          IT'S RIGHT ON THE DARK STATE. 
          THAT'S THE THING. 
          THERE IS, LOOK, THERE IS A COMPELLING, WELL MY, THERE IS SOME COMPELLING APPLICATIONS DOWNTOWN. 
          UH, YOU SAID 65% IS PROJECT BASED. 
          OKAY. 
          SO YOU'RE GONNA GET A CHECK. 
          YOU BASICALLY GET A CHECK FROM WHOEVER FOR 65% OF THE UNITS EVERY MONTH. 
          CORRECT. 
          HOW MANY VOUCHERS, WALKER VOUCHERS ARE DOWNTOWN RIGHT NOW? I MEAN, PLAY THE WALKER VOUCHERS AS YOU'RE SITTING SECTION EIGHT TO HIGH OPPORTUNITY HERE. 
          I'M JUST WONDERING IN GENERAL, I IMAGINE NOT VERY MESSY. 
          I DON'T CARE ABOUT MUCH. 
          NOT A LOT WORK HOUSING IN DOWNTOWN, BUT I HAVE TO. 
          EVERYONE'S BUILT HIGH END IF THAT'S, WELL, AND THAT'S ALSO DEEPER AFFORDABILITY. 
          65% OF YOUR, UH, TENANT BASE IS ACTUALLY TAKEN VOUCHERS. 
          THAT MEANS YOU ACTUALLY GOT DEEPER AFFORDABILITY, FIXED INCOME WITH THE GAL. 
          DID YOU TAKE WALKER ON THAT? YES. 
          SO IT IS A LEGAL REQUIREMENT AND PER EIGHT P 21 TO HAVE THAT MARKET SURVEY, CORRECT? CORRECT. 
          CAN WE, WE'RE ABOUT TO APPROVE AN MOUI MEAN WE DO, WE DO SAY IN THE MOU THAT, UH, IT NEEDS TO BE RESTRICTED PURSUANT TO THAT UNDERWRITING REPORT. 
          SO THE CONCEPTS THERE JUST DON'T HAVE THE FINAL. 
          WELL, DOES THE, DO THE PROJECT BASED VOUCHERS AFFECT THE UNDERWRITING REPORT? 'CAUSE FRANKLY, I DON'T SEE HOW THAT CAN'T MAKE A SALE FIRST. 
          I JUST FOUND OUT THERE'S PROJECT BASED VOUCHERS SITTING IN THE SEAT IS THE FIRST TIME YOU HEARD . 
          OKAY, BUT THAT'S NOT A, I MEAN, IT SOUNDS LIKE THE DISCUSSIONS ARE FAR LONG, BUT IT'S NOT A DONE OR YEAH, SO WE WE'RE NOT ON THE FINAL PHASE YET, BUT WE FOR A WHILE. 
          SO WE'D BEEN HAVING DISCUSSION WITH, SO WHEN, WHAT'S THE, WHEN WOULD YOU KNOW IF YOU'RE GONNA HAVE THOSE? UH, SO, SO RIGHT NOW WE DON'T KNOW, BUT THEY KNOW HOW HARD DAY TO STOP THIS PROJECT. 
          YOU KNOW, WE WANTED TO MAKE SURE THAT OUR NUMBER WORKS. 
          WE HAVE  ATTACHED TO IT. 
          BUT, UH, AGAIN, THAT'S SOMETHING THAT'S . 
          SO, BUT I'M NOT THE DHA, BUT I IMAGINE THEY WOULD JUMP, RIGHT? YOU WOULD THINK. 
          THEY WOULD THINK. 
          YOU WOULD THINK. 
          AND THAT HELPS MITIGATE THAT SIGNIFICANT AMOUNT OF THE DEMAND RISK, RIGHT? YOU HAVE GUARANTEED 65% OCCUPANCY ON PROJECT, PRESUMABLY. 
          I MEAN, I THINK THERE'S A SHORTAGE OF PLACES THAT ARE ACCEPTING THAT, ESPECIALLY DOWNTOWN, RIGHT? COUNCILMAN MEMBER LEY IS JUST ASKING IS VERY SUPPORTIVE OF YES, THAT IS A, I MEAN, Y'ALL PROBABLY HAVEN'T BEEN ABLE TO TALK TO HIM SINCE, BUT Y'ALL, WE HAVE A TRAINING PERSON AND, UH, HE CAME BACK AFTER THE MEETING TO TELL US THAT HE'S VERY EXCITED THAT HE . 
          SO JUST, UM, IF THE RESOLUTIONS TO APPROVE THE MOU, THE MOU ALLOWS FOR DUE DILIGENCE, I THINK ON OUR PART, UM, I, I, I WANNA GET DILIGENCE. 
          DUE DILIGENCE. 
          YEAH. 
          DUE DILIGENCE. 
          I'M, I, I PERSONALLY WANT TO GET TO A COMFORT LEVEL SO I HAVE AN UNDERSTANDING OF HOW MUCH SKIN THE DEVELOPER HAS IN THE GAME IN TERMS OF HOW MUCH MONEY THEY'VE ALREADY INVESTED, HOW MUCH IS STAYING YOU, BECAUSE I DIDN'T HAVE A GOOD UNDERSTANDING OF THAT IN WHAT I WAS REVIEWING MAINLY. 
          MAYBE I DIDN'T REALLY CLOSE ENOUGH, BUT NEGATIVE ABOUT THE CONCEPT. 
          UM, BUT WITH, WITH, YOU KNOW, IF THERE'S A WAY TO, TO SEE THAT BEFORE IT'S FINALLY APPROVED WITH THE FINAL DEAL TERMS HAMMERED OUT, UM, YOU KNOW, I FEEL IF THAT'S WHAT I'M KIND OF HEARING, IT SOUNDS LIKE THERE'S MORE, THE DEVELOPER HAS MORE IN THIS GAME THAN MOST DEVELOPERS DO FOR GROUND UP CONSTRUCTION. 
          WELL, I MEAN THIS WOULD, AND THAT WOULD GIMME A COMFORT LEVEL THAT, THAT I DIDN'T HAVE AT THE OUTSKIRT. 
          AGREED. 
          I WOULD SAY THIS. 
          I MEAN, THIS IS WORKFORCE WHICH IS TRADITIONALLY PRIVATELY CAPITALIZED, OR YOU'VE GOT EQUITY DEVELOPMENTS IN 10%, YOU KNOW, NOT IN THE MIDDLE, BLAH, BLAH, BLAH. 
          THAT'S WORKFORCE MEAN. 
          LITECH IS STRUCTURED TOTALLY DIFFERENT. 
          YOU KNOW, UM, I GUESS I'M JUST DEFENDING LITECH. 
          SO IT WAS, IF THEY, IF THEY ALREADY OWN IT, IF, IF, IF THE, UM, IS IT STATE AND FEDERAL HISTORIC TAX 
          [02:20:01]
CREDITS? YEAH. 
          SO IF YOU, YOU GOT ALL THAT IN WHICH YOU, YOU KNOW, FREE MONEY BASICALLY ONCE YOU YOUR CLIENTS PERIOD. 
          YEAH. 
          UM, UM, AND THERE'S ENOUGH EQUITY IN THAT, THAT SOMEBODY'S NOT, IF IF THEY RUN A BIG PROBLEM, THEY CAN'T JUST WALK AWAY. 
          YEAH. 
          WELL IF THEY DO IT HURTS, HURTS REALLY, REALLY BAD. 
          YEAH, EXACTLY. 
          THAT, THAT, UH, THAT I'D FEEL PRETTY COMFORTABLE WITH DALLAS NEEDS. 
          YEAH. 
          I, I YOU, THE MORE I THINK ABOUT IT MEAN, I REALLY FEEL LIKE THIS IS WHAT KIND OF THINGS WE SHOULD BE DOING. 
          I LOOKING HERE, MAYBE THIS IS IN DISTRICT 14, MY DISTRICT ALLY SUPPORTIVE, BEEN SURPRISED ME, UM, BE BEING RIGHT ON THIS RAIL LINE. 
          AND YOU COULD BE TRYING TO FIND PLACES WHERE PEOPLE THAT ARE, YOU KNOW, OF, UH, IN THE LOWER INCOME BANDS CAN'T GET TO WORK AND ALWAYS ABOUT NOT HAVING A CAR, BEING ABLE TO SAVE MONEY. 
          YOU'RE EVEN YOUR TWO STOPS TO CITY PLACE UPTOWN, OR UH, ONE STOP TO THE ARTS DISTRICT. 
          YOU CAN GO THE OTHER DIRECTION. 
          YOU CAN BE AT PARKLAND WHERE THERE'S TONS OF JOBS AND IT SEEMS LIKE THIS IS KIND OF AN IDEAL, UH, SITUATION. 
          WAIT TO VOTE. 
          YEAH, SURE. 
          YEAH. 
          I, I WILL MOTION. 
          OKAY. 
          WE MOVE, UH, BY DIRECTOR OF ZA AND A SECOND BY VICE PRESIDENT ALLEN. 
          UH, AND JUST BECAUSE WE TALKED ABOUT IT. 
          YEAH. 
          DO WE KNOW IF THERE'S A, IS IT IN THE, I MEAN, YEAH, EVERYTHING IN HIGHWAY SURFACE, IT'S PAGE NINE. 
          PARAGRAPH H WE TALKED ABOUT IT LATER. 
          I JUST WANNA MAKE SURE. 
          YEAH. 
          WELL I KNOW THE, I KNOW THE SECTION YOU'RE TALKING ABOUT, BUT, UH, UM, IT'S SUBJECT TO THAT. 
          OKAY. 
          YOU EXPLAIN THAT AGAIN BECAUSE I WASN'T SURE YOU WANT US TO EXEMPT OR WE'RE YOU WANT US TO BE EXEMPT. 
          I WANT US TO ONLY REMOVE THINGS FROM THE TAX RULES. 
          SO WHEN THERE'S EITHER A TIFF OR A PIT THAT'S GONE, THE EFFORT TO SET THEIR STAGE AND KNOW WHAT THEIR ASSESSMENT IS EVERY YEAR. 
          I DON'T WANNA MESS WITH THAT BECAUSE IT'S SO YOU, YOU WANT, YOU WANNA PILOT THE T YOU WANT PAPER TAXES? WELL, WE'VE GOT TWO THINGS. 
          JUST MAKE SURE CONFUSED. 
          'CAUSE THERE'S A DOWNTOWN TIFF AND THERE'S A DOWN, THERE'S A DOWNTOWN PIT. 
          SO, AND THE DISTRICT, THE BOUNDARIES ARE NOT THE SAME. 
          AND, AND BOUNDARIES OF THE TIFF. 
          THERE'S ACTUALLY TWO DOWN TIFFS. 
          AND THAT'S A GOOD POINT. 
          SO IT WOULD BE, IT WOULD BE PILOT , BUT PITS DON'T IMPOSE TAXES. 
          THEY IMPOSE A SPECIAL ASSESSMENT THAT'S SEPARATE FOR TAXES AND IT'S A CONTRACT RELATIONSHIP. 
          AND SO YOU EITHER SIGN ON TO BE IN THE PIT OR YOU GET SWALLOWED UP BECAUSE OF OTHER PEOPLE SIGN. 
          AND SO WHAT'S HAPPENING IS WE'RE TAKING THINGS OFF OF THE TAX ROLL AND YOU DON'T HAVE ANY IDEA WHAT THEIR RELATIONSHIP TO IT IS. 
          UM, AND IF THEY DIDN'T SIGN, THEY'RE GETTING SUCKED OUT. 
          AND I DON'T WANNA MESS WITH WELL, ISN'T THAT WHAT WE DEAL WITH OKAL? EXACTLY WHAT WE KNOW. 
          YEAH. 
          WE KNEW IT WAS THERE IN THAT, YOU KNOW, WE ACCOUNTED FOR IT AND I THINK WE ADJUSTED THE GROUND LEASE PAYMENT ACCORDINGLY. 
          RIGHT. 
          UM, FOR THAT, I MEAN, I GUESS THE QUESTION HERE, TO EASE THEIR CENTER PAYMENT, THE TIP FOR THAT WAS PIT. 
          THAT WAS A DEEP PIT. 
          PIT. 
          YEAH. 
          BECAUSE WE DIDN'T DISCOVER IMMEDIATELY BECAUSE IT THE CITY'S THROUGH THE CITY END. 
          YEAH. 
          BUT THE CITY PAYS THE PIT FOR WHATEVER. 
          WELL, WITH THE TIP, THERE'S NO TAX INCREMENT. 
          AND I GUESS WE CAN TALK ABOUT WHAT THE TAX INCREMENT BEYOND THE DEVELOPMENT OF THE PIT. 
          YEAH, THE PIT IS THE SPECIALIST. 
          SO DO WE KNOW WE GONNA TIP? I BELIEVE BOTH DEF DEF IT'S DEFINITELY IN THE DOWNTOWN, THE PIT AND THE TIP. 
          SO THE TIFF BOUNDARIES ARE VERY, UH, I THINK BACK YEARS AGO, I DISCUSSED THIS WITH DOEY CLARK WHO WAS IN THE GRO. 
          SHE'S NOT RETIRED. 
          UH, SHE'S BARK NOW. 
          SHE SAID THAT THIS WAS NOT AFFECTING T NOW I DON'T KNOW IF THEY RENEW IT SINCE WHAT? I NEVER LOOKED AT THE TIP. 
          IT'S LIKE I CAN ASK POSSIBLY. 
          OH, OKAY. 
          I MEAN, WHAT WAS THEIR ANSWER? YEAH, WHAT THE PREVIOUS ONE THAT TOOK, UM, $3 MILLION TIP MONEY TO RENOVATE THIS BUILDING YEARS AGO AS AN OFFICE. 
          SO WHEN, WHEN WE WENT TO THE SAFE OFFICE, BECAUSE THE, SO, AND IT'S, IT'S TAKEN TEN THREE MILLION TWO, JUST TO THROW A WRINKLE IN ONE OF THE DOWN STATED PURPOSES, THAT TEST IS TO BE SUPPORTIVE OF AFFORDABLE HOUSING IS. 
          SO THEY'VE GOT A POLICY WHERE, UM, YOU KNOW, YOU'RE TAKING MONEY FROM A SET ASIDE, WHAT 20% PHILOSOPHY IS ON THE CALL PHILOSOPHY. 
          ARE YOU THERE LISTENING? 
          [02:25:03]
CAN YOU UNMUTE? YES, I'M LISTENING. 
          YES, YES, YES. 
          SO IT IS IN THE, I I WAS JUST TEXTING YOU AARON. 
          IT IS IN THE DOWNTOWN IMPROVEMENT DISTRICT THAT IS THE FED, BUT IT IS NOT IN THE DOWNTOWN CONNECTION TIFF. 
          YEAH. 
          THAT THERE'S A, YEAH, SO I, I MEAN, I SAY EVEN THOUGH IT'S NOT IN THE DOWNTOWN DISTRICT TIP, I THINK IT'S, YOU KNOW, WORTH CONSIDERING THAT ONE OF, YOU KNOW, WE TAKE ABOUT TAKING THINGS OUT OF DISTRICTS THAT ONE OF THE PURPOSES OF, OF THE DOWNTOWN CONNECTION TIP, EVEN THOUGH IT'S JUST IN IT, BUT IT'S ALL AROUND IT, IS TO ENCOURAGE AFFORDABLE HOUSING. 
          IN FACT, THEY HAVE A, THEY DID HAVE AN AFFORDABLE HOUSING SET ASIDE ANY ORIGINAL PROJECT PLAN, BUT THAT AFFORDABLE SET ASIDE, FROM WHAT I UNDERSTAND, REST OF IT WAS ALL TAKEN BY WEST BOSTON. 
          SO THERE'S NOTHING LEFT IN THAT ONE. 
          SO, UM, BUT IN CITY, I MEAN, AS A MATTER OF PUBLIC POLICY, WE'VE BEEN VERY, IT'S BEEN VERY ENCOURAGING OF JUST, WHAT'S THAT? JUST AS THE SIDE TO SUPPORT YOU'RE SAYING? YEAH, I'M SAYING YOU, IF THE CONCERN IS, OKAY, WELL WE'RE GONNA TAKE MONEY OUT OF, YOU KNOW, AN ENTITY, UM, AND THAT'S DISADVANTAGING WHAT THAT ENTITY'S PURPOSE, ENTITY'S PURPOSE. 
          ONCE DOWNTOWN, A BIG PART OF HAS BEEN TO, IN ADDITION TO HFC AND PFC, HAVE THOSE HAVE BEEN TO, UH, ENCOURAGE AFFORDABLE HOUSING. 
          SO, UM, AND THAT'S WHAT THEY'VE BEEN USING A LOT OF, A LOT OF MONEY FOR. 
          REGARDLESS HOW THIS VOTE GOES, I'M GONNA ASK THAT STAFF REGULARLY UPDATE THE NEW DEAL COMMITTEE ABOUT THE ONGOING PROGRESS OF THIS DEAL. 
          I THINK I WANT REGULAR DISCUSSIONS THAT MONTH, IF THAT'S, IF YOU'RE ALL OKAY WITH LESLIE CLIFF JACK, UM, JUST BECAUSE IT JUST SEEMS TO CHANGE THE STEEL QUITE A BIT. 
          SO YEAH, THAT'S JUST KIND OF GOT FEEL ON THIS RIGHT NOW. 
          DID WE HAVE A MOTION TO SECOND? WE DID, WE DID. 
          BRIAN'S, UH, SO ARE, ARE, GO AHEAD. 
          ASSUMING THAT, UM, YOU KNOW, THE, THE, THE STRUCTURING EXEMPTS FROM THE PIT, ARE WE REQUIRING THAT THAT STILL BE MADE SIMILAR TO WHAT WAS DONE IN ? YEAH, I THINK WE HAVE TO DO THAT. 
          I LOOK, I THINK, I THINK IT SHOULD PERMANENTLY CHANGED THE PROVISION. 
          SO IT JUST APPLIES TO, I THAT'S KIND A POLICY DECISION. 
          BUT I DO AGREE WITH THAT. 
          SORRY, I DEFINITELY INTERRUPTED SLOW WITH THAT. 
          NO, I JUST WANNA MAKE SURE IT WAS SUBJECT TO THE CHANGE CHANGE YOU INCLUDE. 
          NO. 
          OKAY. 
          SO WE'RE MOSTLY, LET'S DO THIS OVER, I'LL MOTION SUBJECT TO THE INCLUSION OF A PROVISION TO PAY BID ON THIS . 
          I . 
          ALL RIGHT. 
          WE HAVE A MOTION TO SECOND, UH, LET'S GO JACKIE. 
          AND WE WILL SEE THIS AGAIN. 
          YES. 
          WE'LL TALK  DOCUMENTS. 
          SO I MEAN, AND THEN THE JUST  PAUSE AGAIN. 
          YEAH. 
          ANOTHER BOSS. 
          UH, WE'RE GONNA HAVE PARTNERSHIP DOCUMENTS. 
          WE'LL HAVE A BETTER FEEL FOR THE, THE LOAN. 
          I MEAN, THE LENDER'S GOTTA BE PART OF THIS. 
          THE LOAN DOCUMENTS, EVERYTHING'S BUTTONED UP. 
          SO WE'RE GONNA BE ABLE TO LOOK STILL AND LOOK, USUALLY THAT'S KIND OF PERFUNCTORY VOTE, YOU KNOW, THOSE DOCUMENTS. 
          I THINK ON THIS ONE, IT'S JUST GONNA BE AN ADDITIONAL, I JUST, I WANT TO REMEMBER THAT BECAUSE EVERY TIME A FINAL BILL HAS COME, EVERYONE SITS AROUND AND SAYS, WE ALREADY SIGNED AN M YOU, WE'VE ALREADY, YOU KNOW, WE'RE AT THE FINAL. 
          THIS IS JUST TO CHECK THE BOX. 
          SO WHEN IT COMES BACK UP AND I HAVE QUESTIONS, I WANT PEOPLE BEFORE YOU'RE OKAY. 
          I THINK AARON, YOU KNOW, AS PART OF THIS KIND OF ONGOING DUE DILIGENCE, I MEAN, I THINK, YOU KNOW, WE OUGHT TO GET SOME DETAIL KIND OF PROVING UP THE BASIS, MAKING SURE, YOU KNOW, UH, . 
          BUT THIS IS WHY, I MEAN, THIS IS WHY I WANT NEW DEALS REGULARLY UPDATING, IS IF THERE, IF WE, IF YOU KNOW, A COMMITTEE, OUR NEW DEAL COMMITTEE IS GETTING BIE GBS ABOUT HOW WE'RE PROGRESSING DOWN THE PATH  DOCUMENTS. 
          I WANT THEM TO KIND OF GET THAT FEEDBACK. 
          THERE'S STARTING TO BE SOME CONCERNS AS WE'RE HEADING DOWN THIS. 
          LOOK, THIS IS COMPLICATED . 
          YOU KNOW, SO IT'S JUST, I THINK THAT'S KINDA WHY I'M ASKING YOU TO KIND OF KEEP ON TOP OF THIS. 
          YEAH. 
          AND, AND JUST TO BE CLEAR, THERE IS A PROVISION THAT AT ANY POINT AFTER THE MO YOU ASSIGN YOU OR CAN'T TAKE ACTION TO DISPROVE AND KIND OF TERMINATE THE MO. 
          YEAH. 
          NOW WE KNOW THAT HAPPENS. 
          IT'S LIKE, IT'S JUST A COURTESY DEVELOPMENT PARTNER. 
          YEAH. 
          IT'S JUST A COURTESY TO OUR DEVELOPMENT PARTNERS AND YOU ALL, 'CAUSE YOU'RE PUTTING TIME AND RESOURCES INTO THESE PRODUCT CHECKS THAT IF WE'RE PULLING THE PLUG LAST MINUTE, IT JUST DOESN'T COME AS A SURPRISE THAT THERE'S, WE'RE LEADING SOMEWHERE. 
          SO, UM, JACK OR 
          [02:30:01]
ANYONE ELSE? OKAY. 
          OKAY. 
          JACK, VICE PRESIDENT SEAN ALLEN, APPROVE DIRECTOR JUAN RUDOLPH APPROVE TREASURER. 
          JACK MARSHALL SEED. 
          THINK YOU LOST JACK. 
          UM, DIRECTOR PATTY COLLINS. 
          UM, DIRECTOR KEVIN HINTON. 
          YEAH, I MEAN, WE  DID YOU GET MY, COULD YOU ALL HEAR ME? COULD YOU GET MY APPROVED? SO JACKIE? NO, I, I DIDN'T. 
          SORRY. 
          WAS THAT APPROVED? OH, YES IT WAS. 
          YES. 
          OH WAIT, I DID, UH, UH, UM, SORRY, JUST MAKING SURE I DON'T SEE PATTY. 
          OKAY. 
          I DON'T SEE DIRECTOR HINTON, UH, DIRECTOR LESLIE NOT APPROVED. 
          AND I JUST SAY I LOVE THE CONCEPT, BUT I DON'T, AND I KNOW THE STUDY MARKET STUDY, BUT I DON'T FEEL COMFORTABLE MOVING FORWARD UNTIL WE, WE FIGURE OUT THE REST SITUATION TO BE COMPLIANT WITH SAFE LAW PRESIDENT DAVID S UM, APPROVED. 
          DR. 
          CLIFF FRIEDMAN APPROVED. 
          MR. OLIVER ROBINSON. 
          UH, I'M GONNA, I'M GONNA, I'M GONNA NOT APPROVE PENDING PASSING AGAIN. 
          ANY MORE INFO ? YEAH. 
          ALL RIGHT. 
          SO YEAH, THAT WAS A NEW ONE. 
          YEAH. 
          OKAY. 
          THOSE CONCERNS? YEAH. 
          DIRECTOR RYAN MOORE. 
          APPROVE. 
          YES. 
          SECRETARY TONY PAGE APPROVE DIRECTOR SEAN ZA APPROVE. 
          OKAY. 
          1, 2, 3, 4, 5, 6, 7 ITEM. 
          DIDN'T ASK COMMENT ABOUT STANDARD PRACTICE PROCEDURE. 
          YEAH, GO AHEAD. 
          UH, IF WE GET AROUND TO THOSE POLICIES AND PROCEDURES AND YES, FORMALIZING THOSE, WE ARE, UH, WE ALWAYS TRY TO KIND OF CREATE THE LANE OF WHAT ARE WE WORKING WITHIN AT EACH LEVEL. 
          YOU KNOW, IT'S AN INDUCEMENT. 
          I HAVE WARM BUZZIES, I'M GOOD WITH IT. 
          SO AT THIS LEVEL, APPROVING THE MOU 'CAUSE BASED OFF OF WHAT WE SAID BEFORE, I DEFINITELY SEE YOUR CONCERNS BECAUSE WHEN WE GET THE FINAL DOCUMENTS, USUALLY IT'S, IF NOTHING HAS CHANGED FROM THE MOU, THEN WE'RE FINE WITH IT. 
          IF SOMETHING HAS CHANGED, THEN WE CAN, YOU KNOW, HAVE . 
          SO DO WE GENERALLY WANT TO BE ABLE TO APPROVE AN MOU AS LONG AS WE HAVE STATED QUESTIONS, IT'S KIND OF THE OPPOSITE OF THINGS CHANGING. 
          WE WANNA CONFIRM THINGS. 
          'CAUSE WOULD THAT HAVE CHANGED YOUR APPROACH? IF IT WAS, YOU KNOW, ON THE RECORD THAT I WANT TO KNOW A, B, AND C AND IF THOSE CHECK OUT, GOOD, WE CAN MOVE FORWARD. 
          BUT I WOULD SAY THIS, LOOK, I'M GONNA GO DOWN. 
          I DON'T KNOW HOW EVERYONE'S GONNA FEEL. 
          I KNOW I'VE SAID, HEY, IT'S NOT GOOD FORM TO VOTE. 
          NO, WE'RE DOWN TO DOCUMENTS AND ALL THESE BORING FAS BOND ISSUERS HAVE DONE ALL THIS WORK. 
          AT THE END OF THE DAY, YOU ARE INDEPENDENT DIRECTORS. 
          I MEAN, FOR INDEPENDENT DIRECTORS. 
          AND YOU CAN GO, YOU CAN VOTE NO FOR ANY DAMN REASON YOU WANT TO ANY POINT. 
          SO I'M JUST GONNA TELL YOU HOW I THINK MY PHILOSOPHY. 
          YOU GOOD? YEAH. 
          UM, I'M JUST KINDA TELL YOU MY APPROACH. 
          YOU KNOW, I I, I'LL BE, YOU KNOW, I'LL BE VERY CLEAR WHY WE OUGHT TO, BUT AGAIN, YOU ARE INDEPENDENT. 
          THAT'S HOW IT IS. 
          IF YOU KNOW DURING THE DISCUSSION, YOU KNOW, AND, AND A YES VOTE, THE DIRECTOR SAYS, HEY, I'M GONNA HAVE SOME QUESTIONS LIKE Y'ALL DID. 
          I'VE GOT QUESTIONS OR SOMEBODY DID YOU KNOW I'M GONNA WANT ANSWER. 
          BY THE TIME THESE, UH, YOU KNOW, DOCUMENTS GET GIVE UP, THEY BETTER BE READY TO ANSWER. 
          'CAUSE THEY NEED TO KNOW THAT IT'S NOT FOR SURE. 
          I THINK, LESLIE, YOU BRING UP A VERY GOOD POINT, RIGHT? IF WE HAVE A PRELIMINARY INDUCEMENT AND WE SAY, OKAY, IT IS JUST A PRELIMINARY INDUCEMENT, WE RUN IT THROUGH, THEN WE GET TO MOU AND THEY'RE LIKE, WELL, THEY ALREADY SPENT THE TIME FROM PRELIMINARY INDUCEMENT TO THE MOU. 
          AND THEN WE 
          [02:35:01]
SAY, WELL, NOW WE CAN'T SAY NO. 
          THAT PUTS US IN A DOUBLE BIND, RIGHT? WHAT DO WE SAY NOW WHEN WE RAISE THESE CONCERNS? YOU GUYS HAVE VALID CONCERNS. 
          YOU KNOW, MAYBE WE NEED TO SET UP SORT OF A, I'M TRYING TO PUT IT INTO, RIGHT. 
          I DON'T WANNA PUT IT INTO LIKE A POLICY PROCEDURE, BECAUSE THEN THAT'S KIND OF TELLING A DIRECTOR, TELL PEOPLE WHAT, BUT HERE, I, I THINK WE'VE, WE'VE TOLD OUR DEVELOPER, WE'VE VOTED YES, THERE NO CONCERNS AND RESERVATIONS. 
          SO MAYBE IT'S ON US TO DEVELOP THOSE QUESTIONS, GET 'EM OUT THERE QUICK SO THEY KNOW WHAT WE WANNA SEE. 
          LET SEE IT. 
          IF WE DON'T LIKE WHERE THINGS ARE GOING, WE'RE ABLE TO SAY WE DON'T LIKE WHERE THINGS ARE GOING. 
          BUT AT THE END OF THE DAY, THE MLU GIVES US FLEXIBILITY. 
          OH, I'M SURE. 
          ABSOLUTELY. 
          SIGN. 
          SO, BUT, BUT I THINK IT'S ONLY FAIR TO THE DEVELOPER. 
          WE TRY TO GET OUR ISSUES OUT THERE, GET OUR QUESTIONS OUT THERE, GIVE A CHANCE TO ANSWER THEM EARLY SO WE CAN GIVE THE FEEDBACK OF WE DON'T SEE THIS GOING THE RIGHT DIRECT TO YOUR POINT. 
          IT, AS WE MOVE TOWARD THAT DIRECTION, AS WE GIVE THE FEEDBACK TO WHATEVER QUESTIONS WE HAVE AS THE CRISIS CONTINUES, HOW DO WE DISSEMINATE IT SO THAT EVERYBODY IN THE BOARD SEES, ALL RIGHT. 
          I I WAS GONNA SAY IN THIS PARTICULAR CASE, YOU CAN BRING THEM BACK WHENEVER WE DON'T HAVE TO VOTE ON ANYTHING AND SAY, HEY, I  UPDATE. 
          RIGHT? OH YEAH, THAT'S END THAT, YEAH. 
          PUT ON THE AGENDA AN UPDATE IF, WELL, THE QUESTION IS, SOMEBODY MAY NOT NECESSARILY BE, OH, WE NEED TO BRING OUT FOIL. 
          IT'S JUST INFORMATION. 
          IS THAT SOMETHING THAT I DON'T THINK SO. 
          I MEAN, IF WE'RE ASKING A PUBLIC QUESTION, WE'RE MAKING OUR DECISION BASED OFF THE ANSWER. 
          BUT THE ANSWER NEEDS BE PUBLIC. 
          THEY DON'T NECESSARILY BE HERE, BUT IT, IF WE HAVE SOMETHING ON THE AGENDA, WE CAN TALK ABOUT IT. 
          IT'S PUBLIC. 
          IT JUST HAS TO BE ON THE AGENDA. 
          IT'S AGENDA AND IT'S PUBLIC. 
          BUT WHATEVER WE SAY IS PUBLIC AND THEY BE HERE, BUT, RIGHT. 
          YEAH. 
          BUT IF WE HAVE A GROUP THAT'S ALREADY FOLLOWING UP WITH THEM BECAUSE THEY CASCADE THAT INFORMATION TO US AS A BOARD AS A WHOLE, I DON'T KNOW, HAVE AGENDA. 
          I AGREE. 
          I DON'T KNOW. 
          IT JUST, IT FEELS LIKE A TI , SO I, I JUST DON'T KNOW WHERE PHONE I, UH, . 
          VERY GRATIFYING DISCUSSION. 
          UH, OKAY. 
          OH, I'M 10. 
          REVIEW AND DISCUSSION OF DHSE TREASURY REPORT FOR THE FOUR MONTH PERIOD ENDING APRIL 30TH, 2026. 
          MR. , SHANNON ON, I STAYED ON AARON. 
          WOW. 
          EXTRA TIME TODAY. 
          THANK YOU. 
          NO, REALLY PRETTY STRAIGHTFORWARD. 
          UM, THESE FOUR MONTHS, I'LL JUST KEEP IT SUPER SHORT FOR YOU GUYS. 
          UH, JUST KNOW THAT FOR THESE FOUR MONTHS, YOU, YOU'VE ALREADY EARNED, UH, OVER 70, UM, 6% OF THE TOTAL REVENUE THAT Y'ALL HAD ON THE BUDGET FOR 2026. 
          SO, AND YOUR 2026 EXPENSES ARE RUNNING STRAIGHT IN LINE WITH, UH, WHAT WAS BUDGETED. 
          SO THINGS LOOK GOOD THERE. 
          YOUR CHANGE IN FINANCIAL POSITION, UH, FOR THESE FOUR MONTHS IS A POSITIVE NET CHANGE OF 1,000,964, UH, 964,000. 
          LET'S JUST CUT IT RIGHT THERE. 
          NO REASON TO GO INTO THE SMALLER DOLLARS. 
          SO, UH, SITTING, UH, REALLY WELL WITH CASH, CASH EQUIVALENTS AND INVESTMENTS OF OVER 26.3 MILLION. 
          THAT'S IT. 
          QUESTIONS? MAYBE NOT FOR YOU. 
          BRAXTON, TORRINGTON FOR US, WHAT'S, WHEN WE CLOSE THAT, WHAT'S THE FEE COMING IN DAY ONE FOR THE HSC? DO YOU REMEMBER? ? SORRY. 
          SORRY, BRAX, THE AGENDA. 
          HANG ON. 
          WELL, MONEY, HE SAID WATCH THIS BEFORE YOU JUST MESSING WITH BRAXTON A LITTLE BIT. 
          I THINK WE'RE DOING A COUPLE, UH, INSTRUCTION MANAGER, NOT CONSTRUCTION MANAGER, BUT FOR THE GENERAL CONTRACT, I THINK THERE'S A COUPLE DEALS ON THE CONSTRUCTION THAT ARE CLOSING OUT. 
          SO WE'RE GONNA GET A COUPLE OF THOSE CHECKS AND FEES. 
          OKAY. 
          COME PEOPLE ASKING FOR MONEY TOO. 
          SO, UM, DID WE AGENDA ITEM $2 MILLION. 
          IT'S BEEN PULLED. 
          OKAY. 
          THAT'S PROBABLY PRETTY GOOD. 
          THEY GOT THE FEEDBACK FROM OUR NEW COMMITTEE. 
          OH, GOOD. 
          THEY DECIDED TO POST, RIGHT? THEY, THEY WANNA DO SOME MORE GROUND, I THINK FROM SOME OF THE QUESTIONS WE RAISED. 
          THEY WANNA COME WITH SOME ANSWERS. 
          OKAY. 
          [02:40:01]
UH, TOTAL ISSUE FEES OF CLOSING SHOULD BE JUST OVER 300,000 BUCKS. 
          THERE YOU GO. 
          WHAT IS THAT CLOSING? UM, THAT IS ANYTHING ELSE ON THE FINANCIALS, EVERYBODY? LET'S JUST GO TO, UH, ITEM 11, REVIEW DISCUSSION. 
          CORPORATIONS PIPELINE REPORT AS OF JUNE 9TH, 2026. 
          WHAT ARE WE CLOSING THE DOOR? I KNOW WE'RE DOING IT SOON. 
          I SIGNED A WHOLE BUNCH OF DOCUMENTS AND A NICE COURIER AT . 
          JUNE 5TH. 
          JUNE 25TH. 
          JUNE. 
          YEAH. 
          25TH. 
          CLOSE DEALS. 
          HEY, THIS MORE DISCUSSION ON WITH DYLAN. 
          JUST DYLAN, HIM. 
          UM, SO, OKAY. 
          OKAY. 
          ANY QUESTIONS ON THE PIPELINE? OH WOW. 
          OKAY. 
          WELL, THE LDG DEALS, WE, HOW ARE THEY DOING? ANY COMMUNICATION? YEAH, WE'RE, I MEAN, WE'RE GOOD CHECKS FROM A COUPLE OF BUCKS, SO, OKAY. 
          HOW'S THE CONSTRUCTION GOING? SO QUESTION CONSTRUCTIVE TECH , THE TECHNOLOGY BOULEVARD? IT IS, BUT THEY'RE THE P THAT'S WHAT THE PSC 30. 
          OKAY. 
          WHALE. 
          I'M GONNA CALL, CALL, I'M GONNA ADJOURN. 
          IT'S 2 45, UH, MEETINGS. 
          AJOUR.
* 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.