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[00:00:03]

WHO CALL THE, SORRY,

[CALL TO ORDER]

I'M GREG FACADE.

I'M CHAIR OF THE HOUSING AND PLANNING COMMITTEE MEETING.

UH, AND WE ARE MEETING TODAY.

IT IS JUNE 15TH.

IT IS 3:10 PM.

WE ARE MEETING VIRTUALLY.

WE HAVE A QUORUM HERE WITH, UH, MAYOR PRO TEM HARPER, MADISON, AND THE COUNCIL MEMBER ELLIS.

WE'RE ALSO JOINED BY COUNCIL MEMBER THERE

[1. Approve the minutes of the May 3, 2021 Housing and Planning Committee meeting.]

WAS ONE ITEM WE DO NEED TO VOTE ON REALLY QUICKLY, WHICH IS JUST TO APPROVE THE MINUTES FROM THE LAST MEETING.

DO I HAVE A MOTION FOR THAT? SO MOVED BY COUNCIL MEMBER ELLIS, SECONDED BY THE MAYOR PRO TEM THOSE IN FAVOR, PLEASE RAISE YOUR HAND.

AND THAT PASSES UNANIMOUSLY, AND THEN WE'LL GET STARTED WITH OUR PRESENTATIONS AND WITH OUR AGENDA.

WE'RE TAKING THE ITEMS UP IN REVERSE ORDER TODAY.

[4. Briefing on Austin housing market and affordability]

UM, UH, WE'RE STARTING OFF WITH THE PRESENTATION FROM, UH, FROM THE BOARD OF REALTORS ON HOUSING PRICE DATA.

UM, I'M GOING TO START MENTIONING AT THE BEGINNING OF OUR COUNCIL MEETINGS, OR AT LEAST OUR COMMITTEE MEETINGS, HOW MUCH THE HOUSING PRICE HAS GONE UP IN THE LAST YEAR.

IT'S REALLY AN ALARMING AMOUNT.

AND, UH, THERE'LL BE QUITE A BIT HERE IN THIS PRESENTATION, BUT IMPORTANT TO NOTE THAT, UH, WE'RE HERE IN JUNE.

AND IF IT WERE A JANUARY THAT MEDIAN SALES PRICE FOR A HOUSE WOULD BE $111,000 LESS.

SO THE MEDIAN SALES PRICE HAS GONE UP $111,000 SINCE JUST THE BEGINNING OF THE YEAR, UM, WHICH IS JUST REALLY SHOCKING AND REALLY A TERRIBLE THING FOR PEOPLE, UM, TRYING TO BUY A HOME IN OUR CITY AND TRYING TO AFFORD AND BE A PART OF OUR CITY.

SO THERE'S A LOT OF IMPORTANT INFORMATION LIKE THIS THAT WE GET FROM, UH, THE MLS AND FROM THE REALTORS.

AND SO I'M REALLY HAPPY THAT MS. WILLIAMS HAS JOINED US HERE TODAY.

AND THANK YOU ALSO TO EMILY SHANNON HEIR FOR, FOR HELPING US GET THIS TOGETHER SO THAT WE CAN GET THIS INFORMATION OUT TO THE COMMUNITY, UM, AND, AND REALLY GET TO WORK, UH, FOR THE REST OF THE YEAR ON SOME OF THESE ISSUES.

SO THANK YOU, MS. WILLIAMS, TAKE IT AWAY.

THANK YOU SO MUCH, COUNCIL MEMBER.

UH, THANK YOU FOR INVITING US TO BE HERE.

AND I'VE GOT A PRESENTATION THAT THEY'RE GOING TO SHARE FOR YOU THERE.

SO WE'RE JUST GOING TO DO A BRIEF OVERVIEW OF THE MAY HOUSING STEPS THAT WERE JUST RELEASED THIS MORNING.

SO THIS IS THE FRESHEST DATA THAT YOU COULD POSSIBLY GET.

NEXT SLIDE PLEASE.

SO BRIEF INTRODUCTION, JENNY WILLIAMS, I'M THE DEPUTY DIRECTOR OF GOVERNMENT AFFAIRS HERE AT ABE .

WE HAVE OVER 14,000 REALTOR MEMBERS WHO SERVE MEMBERS OF OUR COMMUNITY EACH AND EVERY DAY.

WE ALSO HAVE OUR ACTRESS MLS, WHICH IS SOLELY OWNED BY ABE WAR.

AND THERE ARE OVER 16,000 SUBSCRIBERS THAT USE THE MLS TO MARKET PROPERTIES TO ENSURE THAT ALL OF OUR DATA IS GOOD, UM, AND DO THEIR BUSINESS EACH AND EVERY DAY.

NEXT SLIDE PLEASE.

SO HOW IS THE MARKET? IT IS LIGHTNING FLASH FAST AND INCREDIBLY COMPLEX.

WE ARE SEEING RECORD HIGH HOUSING DEMAND FUELED BY DECADES OF POPULATION AND JOB GROWTH.

I FEEL LIKE IT WAS 10 YEARS AGO.

WE HAD STARTED HEARING THE 150 PEOPLE MOVE HERE EACH WEEK OR EACH DAY OR SOME KIND OF STUFF LIKE THAT THAT HAS NOT SLOWED.

WE HAVE CRITICALLY LOW INVENTORY ACROSS THE REGION AND THAT'S CAUSING HOMES TO SELL VERY RAPIDLY AT INCREASINGLY HIGHER PRICES.

SO THE LOW INVENTORY COMBINED WITH THE HIGH DEMAND IS REALLY CAUSING SOME JUMPS IN PRICES.

HOW'S THAT AFFORDABILITY HAS BECOME A BIT OF A PARADOX.

UM, FOLKS WHO ARE MOVING HERE FROM ELSEWHERE, OR THOSE LOOKING AT OUR MARKET FROM THE OUTSIDE, THINK IT'S AFFORDABLE STILL.

UM, PEOPLE MOVING FROM HIGH-INCOME AREAS LIKE NEW YORK, SAN FRANCISCO, ET CETERA, ET CETERA, UM, LOOK AT OUR MARKET AND THEY THINK, WOW, I CAN GET A HUGE HOME FOR ONLY THAT MUCH, BUT THOSE OF US WHO HAVE LIVED HERE FOR A LONG TIME, THOSE LIFELONG AUSTINITES PEOPLE WHO WHO'VE LIVED HERE, EVEN JUST A HANDFUL OF YEARS, IT'S BECOMING INCREASINGLY UNAFFORDABLE FOR THAT POPULATION.

UM, AND THEN FINALLY, THE MOST IMPORTANT THING TO REMEMBER IS EXPERTS AGREE.

WE ARE NOT IN A HOUSING BUBBLE THAT IS CAUSED BY SPECULATION, UM, REALLY LOOSE LENDING LAWS, ET CETERA.

THAT IS NOT WHERE WE ARE RIGHT NOW.

UM, IT'S A COMBINATION OF INCREDIBLY HIGH DEMAND WITH INCREDIBLY LOW INCOME.

NEXT SLIDE PLEASE.

SO WHAT DOES THAT MEAN FOR THE AVERAGE CONSUMER? WHO'S LOOKING FOR A HOME.

THERE ARE NUMEROUS OFFERS AND OFFERS OVER LIST PRICE ARE NOW THE NORM.

SO IF, IF A CONSTITUENT OF YOURS IS LOOKING FOR A HOME, THEY ARE HEADING INTO A MARKET.

THAT'S GOING TO BE TOUGH.

IT'S HIGHLY COMPETITIVE BUYERS ARE LIKELY TO MAKE OFFERS ON MULTIPLE PROPERTIES, BUT FOR ONE IN SIX TEMPTED.

SO GONE ARE THE DAYS OF THE, YOU KNOW, HOUSE HUNTERS SCENARIO, WHERE YOU LOOK AT THREE

[00:05:01]

PROPERTIES AND PICK ONE AND YOU GET IT.

YOU'RE LOOKING AT PROBABLY 10 20 PROPERTIES MAKING AN OFFER WE'RE ON ON HALF, IF NOT MOST OF THOSE.

AND YEAH, TO BE ABLE TO END UP WITH THE PROPERTY THAT THEY END UP GETTING, UM, CASH IS OFTEN NEEDED TO COVER THE GAP BETWEEN A MORTGAGE AND A SALES PRICE IN ADDITION TO THE DOWNTURN PAYMENT.

SO BUYERS ARE HAVING TO COME TO THE TABLE WITH MORE CASH ON HAND.

UM, CONTRACTS ARE VERY COMPLEX WITH LOTS OF WAYS, CONTINGENCIES OPTION FEES AND OR APPRAISALS.

THAT'S NOW COMMONPLACE.

AND OUR MEMBERS ARE COVERING LARGER AND LARGER SERVICE AREAS TO HELP THEIR BUYERS FIND A HOME THAT THEY NEED.

UM, RENTERS, WELL, OBVIOUSLY NEXT SLIDE PLEASE.

SO, YOU KNOW, YOU'VE HEARD THIS OVER AND OVER AGAIN, WE'RE IN A HOUSING AFFORDABILITY CRISIS, SIMPLY PUT HOUSEHOLD INCOMES CANNOT KEEP UP.

SO OVER THE LAST 10 YEARS FROM JANUARY OF 2011 TO DECEMBER OF THE END OF 2020, UM, HOUSEHOLD INCOMES HAVE GROWN 38%.

NOW THAT'S GREAT BECAUSE INFLATION WAS VERY LOW IN THAT PERIOD OF TIME.

HOWEVER, HOME VALUES IN AUSTIN HAVE GROWN 138% IN THAT TIME PERIOD.

SO THE MEDIAN HOUSEHOLD INCOME AND AUSTIN 71,000 COULD AFFORD APPROXIMATELY A $248,000 HOME WITH A DOWN PAYMENT.

WHAT YOU'LL SEE IN THE NUMBERS THAT I SHOW YOU IS THAT IS BECOMING INCREASINGLY IMPOSSIBLE, UM, IN THE CITY AS WELL AS IN THE METRO AREA AREA.

NEXT SLIDE PLEASE.

SO HERE IS OUR MAY, 2021 STATS FOR THE AUSTIN ROUND ROCK MSA, AND THEN I'LL DIVE INTO THE CITY SPECIFIC STATS AND THEN GIVE YOU SOME OF THE DISTRICT SPECIFIC INFORMATION AS WELL AT THE END.

SO THE MEDIAN PRICE FOR THE MSA THAT'S A FIVE COUNTY REGION IS 465,000 FOR THE MONTH OF MAY.

THAT'S AN INCREASE OF 42% OVER MAY OF LAST YEAR.

IT'S IMPORTANT TO REMEMBER THAT WHEN WE'RE LOOKING AT THE NUMBERS RIGHT NOW, WE ARE COMPARING WITH A TIME PERIOD WHERE THINGS WERE A LOT DIFFERENT BECAUSE OF COVID REAL ESTATE.

WASN'T A CENTRAL SERVICE, UM, TRANSACTIONS WERE STILL OCCURRING, BUT THEY WERE SLOWED DOWN SIGNIFICANTLY.

SO IT IS GOOD TO KEEP THAT INTO CONTEXT.

UM, AS YOU CAN SEE IN THE BOTTOM LEFT-HAND CORNER, THE SALES DOLLAR VOLUME HAS INCREASED OVER A HUNDRED PERCENT, UM, TO OVER $2 BILLION.

SO THAT'S OVER $2 BILLION BEING CONTRIBUTED TO OUR REGION'S ECONOMY IN THE RESIDENTIAL REAL ESTATE SECTOR ALONE CLOSED SALES ARE UP 48% DAYS ON MARKET ARE DOWN 33 DAYS.

SO THAT'S HOW LONG ON AVERAGE A HOME IS STAYING ON THE MARKET.

UM, A YEAR AGO, HOMES WERE STAYING ON THE MARKET FOR OVER 40 DAYS AND NOW THEY'RE STAYING ON THE MARKET FOR A LITTLE OVER TWO WEEKS IN THE METRO NEW LISTINGS ARE UP ACTIVE LISTINGS ARE DOWN BECAUSE THEY'RE MOVING SO QUICKLY.

UM, AND THEN PENDING SALES ARE UP.

THE MOST TROUBLING NUMBER TO US IS IN THE BOTTOM RIGHT HAND CORNER OF YOUR SCREEN.

IT'S THE MONTHS OF INVENTORY.

THAT'S HOW LONG IT WOULD TAKE FOR THE CURRENT NUMBER OF HOMES ON THE MARKET TO LAST, IF DEMAND, UM, IF NO NEW HOMES WERE ADDED TO THE MARKET.

SO WE WOULD RUN OUT OF HOMES IF DEMAND WERE THE SAME AND NO NEW HOMES WERE ADDED IN TWO WEEKS IN THE METRO AREA, WHICH IS REALLY SCARY.

NEXT SLIDE PLEASE.

SO NOW WE'LL DIVE INTO THE CITY OF AUSTIN STATS.

NEXT SLIDE.

SO THE MEDIAN PRICE FOR THE CITY OF AUSTIN IN MAY WAS $566,500.

SO THAT'S UP 34% OVER THE PREVIOUS MAY AGAIN, KEEPING IN MIND THAT WE HAD THE COVID NOT SHUT DOWN, BUT SITUATION, UM, INVOLVED IN THOSE THINGS.

NEXT SLIDE PLEASE.

OKAY.

UM, WE ARE SEEING JUST AS LOW DAYS ON MARKET HERE IN AUSTIN AS ACROSS THE REGION.

THEY, UM, THE DAYS ON MARKET LAST YEAR AT THIS TIME WERE, UM, 31 AND NOW WE'RE AT 15, SO THEY WERE ALREADY LOWER IN THE REGION ACROSS THE REGION.

AND NOW, UM, WE'RE AT JUST ABOUT TWO WEEKS HOMES.

GO ON MARKET LEAVE.

NEXT SLIDE PLEASE.

OH, I'M SORRY.

ALL MY WATCH, HER TALKING TO ME.

UM, CLOSE SALES ARE UP 54%.

OVER 1200 CLOSED SALES PENDING SALES ARE UP 20% OVER, UM, ALMOST 1400 PENDING SALE.

SO THE CITY NEXT SLIDE PLEASE.

OKAY.

LISTINGS NEW LISTINGS ARE UP 6% TO OVER 1400.

SO WE ARE SEEING MORE LISTINGS THAN EVER, AND WE ARE SEEING HIGHER DEMAND THAN EVER.

SO THE LISTINGS ARE NOT

[00:10:01]

ABLE TO KEEP UP, UM, WHICH IS WHY YOU SEE ACTIVE LISTINGS, UH, BE A DECREASE OF 60, 62% YEAR OVER YEAR BECAUSE THEY'RE MOVING OFF OF THEM.

SO QUICKLY.

NEXT SLIDE PLEASE.

AND MONTHS OF INVENTORY HERE IN AUSTIN IS THE SAME AS IT IS ACROSS THE REGION.

WE'RE AT 0.5 MONTHS AS OPPOSED TO A PREVIOUS YEAR, UM, 1.2 MONTHS.

SO TWO WEEKS OF INVENTORY IN THE CITY, THE TEXAS, A AND M REAL ESTATE CENTER DEFINES A BALANCED HOUSING MARKET AS SIX MONTHS OF INVENTORY.

SO WE HAVE BEEN AT A LOW LEVEL OF INVENTORY FOR ALMOST THE PAST DECADE, UM, BUT IT'S REALLY HIT A CRITICAL LOW OVER THE LAST SIX MONTHS.

NEXT SLIDE.

SO, SO, UM, COUNCIL MEMBER CASAR, UM, REQUESTED THAT I CREATE A GRAPH SHOWING THESE TWO THINGS THAT I'M SUPER GLAD I DID BECAUSE IT SHOWS THE EXACTLY HOW THE INVENTORY HAS IMPACTED PRICING.

SO YOU CAN SEE THAT OBVIOUSLY WHEN INVENTORY WAS, WAS SOMEWHAT STABLE, HOVERING ABOVE ONE MONTH PRICES FOR PRICING, THEY WERE RISING AT BETWEEN SIX AND 10% YEAR OVER YEAR ON AVERAGE.

UM, SOMETIMES THEY WENT DOWN A LITTLE BIT, BUT EVER SINCE WE REACHED BELOW ONE MONTH OF INVENTORY IN DECEMBER OF 2020, THEY HAVE REALLY SKYROCKETED BECAUSE OF THE DISPARITY BETWEEN AVAILABLE HOMES AND THE DEMAND.

SO WE'LL TURN TO THE DEMAND, THE NEXT SLIDE.

SO HERE YOU SEE DAYS ON MARKET AS COMPARED TO MEDIAN HOME PRICE.

SO, YOU KNOW, WE WERE WELL ABOVE A MONTH OF AVERAGE DAYS ON MARKET FOR AT LEAST THE PAST 10 YEARS ONLY COVERS THE PAST YEAR AND A HALF, BUT EVER SINCE WE DIPPED BELOW A MONTH OF DAYS ON MARKET LAST SPRING, UM, WHICH IS REALLY WHEN PEOPLE STARTED KIND OF FEELING LIKE, OKAY, I NEED TO BUY A HOME AND I NEED TO BUY IT FAST.

UM, IS REALLY WHEN WE STARTED SEEING HOME VALUES INCREASE, ET CETERA.

GREAT.

NEXT SLIDE PLEASE.

OKAY.

SO I'M JUST GOING TO QUICKLY DIVE INTO THE DISTRICT STATS.

UM, KEEP IN MIND THAT EACH DISTRICT, UM, IS A MUCH SMALLER AREA THAN THE CITY AS, AS AT LARGE.

SO, UM, THEY DO, THEY ARE PRONE TO SWINGS.

SO DISTRICT-WIDE IS DISTRICT ONE AND TWO ARE STILL, UM, BELOW THE MEDIAN PRICES ACROSS THE CITY, WHICH IS GOOD NEWS FOR THOSE WHO ARE LOOKING FOR HOMES TO PURCHASE, UM, WHO MIGHT BE OF A MORE MODERATE INCOME.

UM, THAT SAID HOMES ARE MOVING VERY QUICKLY BELOW TWO WEEKS ON THE MARKET.

AND, UM, WE HAVE VERY LIMITED INVENTORY AS WELL.

DISTRICTS THREE, FOUR, AND FIVE ARE MUCH CLOSER TO THE MEDIAN PRICE ACROSS THE CITY.

UM, YOU'RE STILL SEEING SIGNIFICANT PRICE INCREASES FROM YEAR OVER YEAR THAT YOU'VE SEEN ACROSS THE CITY, UM, AND CRITICALLY LOW INVENTORY THERE AS WELL.

NEXT SLIDE.

SO THIS IS WHERE THINGS GET A LITTLE WONKY BECAUSE THE DISTRICT NINE AND 10, I FEEL LIKE HAVE THE MOST INTERESTING STORIES TO TELL AS FAR AS WHAT'S GOING ON IN THEIR MARKETS.

UM, DISTRICT SIX AND SEVEN ARE BOTH ALSO CLOSE TO THE CITY AT LARGE, AS FAR AS THE MEDIAN PRICE, BOTH SEEING DOUBLE DIGIT GAINS, UM, BOTH STILL HAVING LIMITED INVENTORY DISTRICT EIGHT, UM, COUNCIL MEMBER ELLIS, YOUR DISTRICT IS SEEING THINGS MOVE THE FASTEST ACROSS THE CITY, WHICH IS NO SURPRISE TO ME BASED ON, UM, ALL OF MY FRIENDS WHO LIVE IN THAT AREA THAT I SEE POSTED ON FACEBOOK ABOUT THEIR HOME SEARCHES.

UM, SO WE KNOW HOW CRAZY IT IS ANECDOTALLY THERE, DISTRICT NINE, UM, HAS THE MOST INVENTORY AND HOMES ARE STAYING ON THE MARKET.

THE LONGEST, MY FEELING ABOUT THAT DISTRICT IS THAT THAT'S BECAUSE IT DOES INCLUDE A LOT OF STUDENT HOUSING, A LOT OF CONDOS, MUCH MORE THAN THE OTHER DISTRICTS DO.

SO, WHICH IS ALLOWING, UM, MORE INVENTORY TO BE ONLINE IN THAT AREA.

AND THEN DISTRICT 10 IS, UM, NOT SURPRISINGLY THE HIGHEST PRICE DISTRICT ACROSS THE CITY, EVEN STILL, UM, ANY HOMES THAT GET LISTED ON THE MARKET ARE MOVING VERY RAPIDLY.

UM, THERE'S DEMAND AT ALL LEVELS OF THE MARKET.

OKAY.

NEXT SLIDE.

AND THAT'S THE END OF THE PRESENTATION.

SO HAPPY TO TAKE ANY QUESTIONS, COMMENTS KNOW, I THINK YOU CAN STOP SHARING.

THANK YOU, UH, JENNY FOR, FOR SHARING THIS WITH US.

UH, AND WE MAY, UH,

[00:15:01]

YOU KNOW, MEMBERS CAN ASK IF YOU WANT TO PULL UP ANY OF THE SLIDES, BUT Y'ALL PLEASE GO AHEAD AND ASK US SOME QUESTIONS ABOUT THIS GENERALLY PRETTY SCARY AND AWFUL DATA.

I TRIED TO MAKE IT WORK.

NICE.

THANK YOU FOR THAT COUNCIL MEMBER ELLIS.

THANK YOU, JENNY.

IT DOES LOOK NICE.

IT'S PRESENTED VERY WELL, EVEN THOUGH THE INFORMATION, YOU KNOW, IF YOU'RE SELLING A HOME, IT'S NICE TO BE SPENT ON YOUR HOME AND GUESTS GET OVER ASKING AND THINGS LIKE THAT.

SO WE'RE CERTAINLY SEEING THAT IN DISTRICT DATE.

DO YOU HAVE ANY, UM, INFORMATION YOU CAN SHARE ABOUT HOW THAT AFFECTS THE RENTAL MARKET AS SOMEONE WHO IS AN APARTMENT DWELLER MYSELF, PEOPLE HAVE SOLD HOMES IN MY DISTRICT AND THEY HAVEN'T BEEN ABLE TO BUY THE NEXT ONE YET.

AND SO THEY ARE ENTERING THE RENTAL MARKET AS A STOP GAP MEASURE.

DO YOU HAVE ANY INFORMATION YOU CAN SHARE ABOUT THAT SITUATION? SO WE WERE DEFINITELY SEEING RENTS INCREASED DRAMATICALLY AS WELL.

THERE WAS A PERIOD OF TIME WHERE THEY WERE NOT INCREASING SO MUCH DURING COVID.

UM, I MEAN, WE'RE OBVIOUSLY STILL IN COVID, BUT DURING THE, THE REAL PEAK OF, OF THE, UM, THE IMPACT OF THE PANDEMIC RENTS WERE NOT INCREASING AS MUCH, IF AT ALL, IN FACT SOME WERE GOING DOWN, BUT NOW WE'RE SEEING A SIGNIFICANT CRUNCH IN THE RENTAL MARKET.

AS FAR AS, UM, MEDIAN PRICE AND AVAILABILITY OF RENTAL UNITS.

I CAN SPECIFICALLY PULL SOME INFORMATION FOR YOU AND SEND IT, I'LL SEND IT TO THIS WHOLE GROUP.

SO YOU ALL HAVE IT, UM, ABOUT THE MEDIAN PRICE OF, UM, APARTMENT RENTALS IN THE AUSTIN AREA.

SO I'LL PULL THAT FOR YOU AND SEND IT TO Y'ALL AFTERWARDS AT THAT TIME.

OKAY.

THAT'D BE GREAT, UH, APARTMENTS AND MAYBE SINGLE FAMILY HOMES OR DUPLEXES THAT PEOPLE ARE RENTING, BECAUSE I KNOW, UM, THOSE WITH CHILDREN PROBABLY WANT SOMETHING WITH A LITTLE MORE SQUARE FOOTAGE THAN A TYPICAL APARTMENT FLOOR PLAN CAN OFFER.

I DO KNOW THERE, YOU KNOW, THERE'S KIND OF THIS PUSH AND SHOVE IN THE MARKET THAT YOU HAVE PEOPLE COMING IN FROM OUT OF TOWN, BUYING HOUSES AT HIGHER RATES, AND YOU'RE SEEING THE SITUATION PLAY OUT IN REAL TIME.

IT, IT DOES AFFECT THEN THERE'S DOMINO EFFECT OF HOW, HOW THAT WORKS IN THE RENTAL MARKET AS WELL.

WE SAW THAT WITH THE PANDEMIC TOO.

IT WAS FIRST, IT WAS THIS PROBLEM THAN IT WAS THIS PROBLEM, THIS PROBLEM.

SO I AM CURIOUS ABOUT HOW, HOW THE HOUSING AFFORDABILITY COMPONENT IS AFFECTING THE RENTAL MARKET.

YEAH.

I WILL LOOK UP SOME HARD NUMBERS FOR YOU, BUT WE ARE SEEING SOME SIGNIFICANT INCREASES IN RENT AS WELL.

COUNCILOR .

THANK YOU, JENNY.

I HAVE A COUPLE OF QUESTIONS, I GUESS MY FIRST ONE IS IF YOU CAN GIVE US A SENSE ABOUT, UM, I KNOW YOU THAT THE LISTINGS WERE UP AND THAT IS, I GUESS WE HAVE MORE LISTINGS THAN EVER AN INCREASE OF 6% TO THE EXTENT OF WHAT ABOUT OUR ACTUAL PHYSICAL HOUSING SUPPLY PRODUCTION AND HOW WHAT'S THE RATE OF THAT, UM, COMPARED TO OUR INVENTORY THAT WE HAVE ON THE MARKET.

YEAH.

AS FAR AS, UM, SPECIFIC PRODUCTION, I WOULD DEFINITELY ENCOURAGE YOU TO TALK TO THE HOME BUILDERS ABOUT WHAT THEY'RE SEEING.

UM, BECAUSE WE, THE MAJORITY OF OUR MEMBERS DEAL WITH RESALE.

OF COURSE, THERE ARE A LOT OF NEW BUILD PROJECTS THAT ARE PART OF THAT EQUATION, BUT THAT'S NOT ALWAYS THE CASE.

SOME BUILDERS WORK SPECIFICALLY WITH CERTAIN AGENTS AND THAT DOESN'T END UP IN OUR DATA.

UM, SO I WOULD ENCOURAGE YOU TO, TO TALK TO THEM ABOUT WHAT THEIR PRODUCTION IS LOOKING LIKE.

UM, WHAT WE ARE SEEING AS FAR AS, WHEN I'VE TALKED TO, UM, FICA O'GRADY WITH SONDA RESEARCH, THEY ARE, UH, A GROUP THAT STUDIES THE HOUSING MARKET, AS WELL AS, YOU KNOW, BUILDING PRODUCTION, ET CETERA, IS THAT LOT DELIVERY IS ON PACE TO BE THE HIGHEST LOT DELIVERY IN OUR, IN OUR REGION EVER IN HISTORY.

SO MORE NEW HOMES COMING ON THE MARKET THEN THAN EVER.

BUT THAT SAID, UM, THERE ARE A LOT OF SUPPLY CHAIN ISSUES THAT ARE IMPACTING THAT.

EMILY, DO YOU HAVE ANYTHING TO ADD TO THAT? YEAH.

THANKS, EMILY.

I JUST ALSO WANTED TO ADD, YOU KNOW, ONE OF THE THINGS THAT WE'VE SEEN WITH REGARDS TO PRODUCTION BUILDERS, ESPECIALLY THOSE IN LARGE SCALE DEVELOPMENTS IS THAT THEY TOOK A PRETTY SIGNIFICANT PAUSE AT THE START OF THE PANDEMIC.

AND THERE'S A SERIOUS TIMELINE THAT HAPPENS WHEN IT COMES TO TURNING DIRT TO PREPARE THOSE LOTS FOR PRODUCTION BUILD.

SO THAT CERTAINLY PUT THEM BEHIND IN TERMS OF HAVING ADEQUATE SUPPLY TO MEET THE DEMAND AS WELL.

UM, YOU KNOW, THAT PAUSE HAS LONG TIME SINCE STOPPED, BUT I THINK IT JUST, IT'S IMPORTANT TO UNDERSTAND THAT EVEN THAT SIX TO EIGHT WEEKS LAST ONE YEAR AGO, PLUS HAS AN IMPACT THAT IS LONG LASTING WITH REGARDS TO THEIR ABILITY TO, TO ALLOW FOR, FOR PRODUCTION TO CONTINUE.

YEAH.

[00:20:01]

AND TO ADD ONTO THAT, I HAD A CONVERSATION WITH, UH, THE TEXAS REGIONAL PRESIDENT OF BRADFIELD PROPERTIES THE OTHER DAY, AND HE WAS TALKING ABOUT HOW AT THE BEGINNING OF THE PANDEMIC, THEY CHANGED ALL THEIR PROJECTIONS AND, YOU KNOW, WE'RE REALLY DIALED THINGS BACK, DID NOT EXPECT THE DEMAND THAT HAS COME ROARING BACK.

AND SO THAT IS JUST ANECDOTALLY EVIDENCE OF LIKE THEM PLAYING CATCH UP ON SOMETHING THAT THEY ALL KIND OF TOOK A PAUSE AND SAID, OKAY, WELL, WE'RE NOT REALLY GOING TO BE ABLE TO MAKE, MAKE IT WORK, BUT ENDED UP BEING THE OPPOSITE OF WHAT THEY PREDICTED.

YEAH, THAT'S HELPFUL.

THANK YOU.

AND SO MY OTHER QUESTION IS HOW DOES, HOW DOES AUSTIN COMPARE TO OTHER COMPARABLE COMPARABLY SIZED CITIES? UM, ARE THEY ALSO HAVING THE SAME AMOUNT OF TRENDS OR IS AUSTIN UNIQUE IN OUR SITUATION? SO WE ARE SEEING DOUBLE DIGIT INCREASES AS FAR AS HOME VALUES GOES ACROSS THE COUNTRY.

UM, THAT'S DUE IN LARGE PART TO, UM, A BACKLOG OF, OF NEW PRODUCTION THAT NEVER CAME ONLINE IN THE LAST DECADE AFTER THE GREAT RECESSION.

AND THEN ALSO SOME EXACERBATING FACTORS FROM THE PANDEMIC SUPPLY CHAIN ISSUES, LABOR ISSUES, UM, FOLKS NOT BUYING THE LOTS THAT THEY, THEY NEEDED TO MEET.

THE DEMAND THAT THEY DIDN'T KNOW WAS COMING.

UM, BUT HERE IN AUSTIN, IT'S BEING ACUTELY FELT AND EVEN MORE THAN, UM, OUR INCREASES ARE EVEN HIGHER THAN EVERYWHERE ELSE.

I WAS ON A CALL WITH, UM, THE NATIONAL GOVERNMENT AFFAIRS DIRECTORS OF ALL THE REALTOR ASSOCIATIONS ACROSS THE COUNTRY.

AND SOMEONE PUT IN THE CHAT IS ANYONE TRACKING ABOVE 20% YEAR OVER YEAR PRICE INCREASE.

AND I WAS LIKE, YEAH, WE'RE AT 42.

SO, UM, WE, EVERYONE IS SEEING SIGNIFICANT PRICE INCREASES, BUT NO ONE IS SEEING WHAT WE ARE SEEING HERE.

AND IN LARGE PART, UNFORTUNATELY THAT'S DUE TO THE FACT THAT WE HAVE, UM, WE'VE REALLY, WE'VE BEEN AT A LOW LEVEL OF INVENTORY FOR A LONG, LONG TIME.

I'VE WORKED AT ABL FOR SEVEN YEARS AND WE HAVE HAD TWO MONTHS AND BELOW OF INVENTORY ON AVERAGE THAT ENTIRE TIME AND, AND WHERE YOU TRACKED IT, JENNY WAS THAT WE WERE INCREASING PROBABLY TOO MUCH FOR A LONG TIME, BUT THEN THAT THE REAL BIG SPIKE WAS WHEN WE WENT DOWN TO ONE MONTH AND THEN BELOW, IS THAT RIGHT? IS THAT WE SHOWED YOU? YEAH, YEAH, WE HAD, WE'D HAD, UM, BETWEEN SIX AND 10% YEAR OVER YEAR INCREASES EACH MONTH IN, UH, PRICES, WHICH IS HIGHER THAN AVERAGE, BUT NOW WE ARE DOUBLING TRIPLING, QUADRUPLING THAT AMOUNT YEAR OVER YEAR PRICE INCREASE AS A RESULT OF THE LACK OF INVENTORY AND SIGNIFICANTLY INCREASED DEMAND COUNCIL MEMBER.

SORRY, I HOPPED IN, I DON'T KNOW IF YOU HAD ANOTHER QUESTION AFTER THAT.

UM, NO, THAT WAS GOOD.

UH, KNOW THAT THOSE WERE THE QUESTIONS I HAD.

THANK YOU.

THAT, SO WHAT YOU'RE SAYING IS THOUGH, JUST TO WRAP UP COUNCIL MEMBER, FRANCIS'S QUESTION IS THAT 42% INCREASE IN ONE YEAR IS, IS PRETTY UNHEARD OF IN OUR CITY AND ACROSS THE COUNTRY.

YEAH.

YOU KNOW, I HAVING DONE THIS JOB FOR A LITTLE WHILE, RIGHT.

THERE IS JUST SO MUCH, UH, DEBATE OR QUESTIONS ABOUT LAND DEVELOPMENT CODE.

AND YOU KNOW, HERE IN THE LAST YEAR, WE HAVEN'T CHANGED ANYTHING ABOUT THAT CODE.

AND WE NOW ARE SEEING A 42% INCREASE.

SO YOU CAN'T, YOU KNOW, HAVING DONE NOTHING, UM, CERTAINLY HAS NOT, HAS NOT ADDRESSED THAT ISSUE.

AND IT CERTAINLY NOT ADDRESSED A SUPPLY ISSUE.

UM, AND FOR US TO DROP DOWN BELOW ONE MONTH OF INVENTORY AND THEN TO SEE THE SPIKE, UNFORTUNATELY, UM, MAKES COMMON SENSE WHEN YOU HAVE SO, SO FEW HOUSES ON THE MARKET, UH, YOU HAVE SO MANY MORE PEOPLE BIDDING ON THE EXACT SAME HOMES.

I'VE HAD HEARD FROM LOTS OF CONSTITUENTS WHO ARE TRYING TO BUY THEIR FIRST HOME AND THEY COULDN'T BELIEVE HOW MANY DOZENS OF PEOPLE THEY WERE COMPETING WITH TO GET THE SAME HOUSE, UM, IN DISTRICT FOUR.

AND THEN TO SEE THE NUMBERS IN MY DISTRICT AND, AND OTHERS BEING A 40 TO 50% INCREASE IN HOME PRICES IN JUST ONE YEAR IS IT'S SHOCKING AND IT'S, AND IT'S TERRIBLE.

UM, ALSO I HAD ONE OTHER QUESTION AROUND, HOLD ON, I'VE GOT MY NOTES DOWN HERE.

YEAH.

IN 10 YEARS OVER THE COURSE OF THE LAST 10 YEARS, DID YOU HAVE ALSO THE NUMBER, I THINK THAT WAS SOMEWHERE IN YOUR PRESENTATION OF HOW MUCH IT'S GONE UP? OH YEAH.

A HUNDRED, 138%.

I JUST REMEMBER WHEN WE WERE TALKING ABOUT WHETHER, YOU KNOW, HOW SOON WE WOULD BE IN A PLACE WHERE WE WERE A CITY

[00:25:01]

THAT WAS OVER HALF A MILLION DOLLARS.

AND I THOUGHT THAT THAT WOULD BE SOME TIME AFTER I WAS DONE WITH COUNCIL.

UH, AND NOW WE'VE, WE'VE CROSSED, WE'VE CROSSED THAT POINT TOO.

I JUST THINK THAT IT'S JUST AN IMPORTANT THING FOR US TO NOTE, WE'VE BEEN DEALING WITH SO MANY CRISES FROM THE PANDEMIC AND ADDRESSING CRITICAL CIVIL RIGHTS ISSUES, UH, THE WINTER STORM.

SO, YOU KNOW, SO MANY THINGS WE'VE BEEN DEALING WITH ON COUNCIL.

UM, BUT SO MANY OF THE ISSUES WE WERE DEALING WITH BEFORE THE PANDEMIC NOW SEEMS SO MUCH WORSE FOR HOUSING AFFORDABILITY.

WE WERE ALREADY DEALING WITH GENTRIFICATION AND NOW I THINK THIS MEANS WE'RE DEALING WITH SUPERCHARGED GENTRIFICATION.

WE WERE ALREADY ADDRESSING, UM, ALREADY BECOMING MORE AND MORE EXCLUSIVE, AND THIS WILL MAKE IT SO MUCH WORSE.

AND IT WAS ALREADY A TOUGH PLACE IN OUR CITY FOR AN EVERYDAY PERSON TO BUY A HOUSE.

AND NOW IT SEEMS VIRTUALLY IMPOSSIBLE.

SO I THINK IT'S, IT IS JUST AN IMPORTANT, REALLY, REALLY IMPORTANT WARNING AND REALITY CHECK FOR ALL OF US TO SEE HOW AS THAT HOUSING SUPPLY HAS DROPPED SO MUCH, UH, WE'VE SEEN THIS REALLY SHARP PRICE INCREASE THAT I THINK WE CAN'T FIX ALL ON OUR OWN, BUT THERE ARE CERTAINLY THINGS THAT WE CAN COME TOGETHER AND DO AS A COMMUNITY TO HELP ADDRESS THAT HOUSING SHORTAGE AND TO MAKE IT EASIER FOR THE EVERYDAY PERSON TO BUY A HOUSE.

YOU KNOW, WE'LL HAVE ITEMS COMING UP ON THE AGENDA LATER ABOUT HOW WE CAN CONTINUE TO ADDRESS SUBSIDIZED HOUSING HOUSING, AND MAKE SURE THAT PEOPLE WHO AREN'T SERVED BY THE MARKET HAVE A CHANCE TO RENT OR OWN.

UM, BUT IN PART, WHAT WE'RE ALSO REALLY HAVING TO, TO COME TO GRIPS WITH IS JUST THE EVERYDAY PERSON, UM, UH, SHOULD BE ABLE TO BUY A HOUSE IN THE CITY WITHOUT SUBSIDY.

UH, AND IT SEEMS LIKE THAT IS BECOMING INCREASINGLY FAR, FAR OUT OF REACH COUNCIL MEMBER ELLIS.

I SAW YOUR HAND WAS UP.

THANK YOU.

WHAT DO YOU ALL SEE HAPPENING IN THE FUTURE? WE DON'T BRING MORE HOUSING STOCK ONLINE.

HOW, HOW BAD IS IT GOING TO GET, I MEAN, NOT A CRYSTAL BALL, HOWEVER, EMILY, WHEN HE GOT MORE OF THIS.

YEAH, I MEAN, IT'S MORE OF THE SAME.

THE REALITY IS THIS IS THE CRUNCH THAT WE WERE IN FIVE YEARS AGO.

IT WAS JUST EXACERBATED THROUGH A HISTORICALLY LOW INTEREST RATE THAT IS INCREASED BUYING POWER BEYOND WHAT WE ALL WOULD HAVE IMAGINED A 2.6, 2.8 INTEREST RATE, NOT ONLY INCREASES BUYING POWER, BUT IT INCREASES THE URGENCY BEHIND A BUYER'S WILLINGNESS TO GET IN THE MARKET TODAY SO THAT THEY CAN LOCK IN THAT RATE AS WELL.

UM, YOU KNOW, THE ANCHOR OF THE PANDEMIC HAS CERTAINLY LED TO PEOPLE FEELING MORE MOTIVATED THAN EVER TO MAKE MOVES THAT THEY MIGHT NOT HAVE MADE BEFORE THE CHANGES IN THE REQUIREMENTS FROM THEIR EMPLOYERS AND THE WAY THAT THEY'RE WORKING, ALL OF THOSE THINGS ARE CONTRIBUTING FACTORS TO THE PACE OF TODAY'S MARKET AND HOW AGGRESSIVELY IT'S DRIVING.

BUT THIS IS REALLY THE SAME MARKET WE WERE IN AND IT'S THE SAME MARKET WE'RE GOING TO BE IN.

IF WE DON'T MAKE CHANGES MOVING FORWARD FROM A POLICY PERSPECTIVE.

THAT'S GREAT.

AND THEN, YOU KNOW, FOR THOSE BUYING HOUSES, IT'S REALLY EXCITING FOR THOSE SELLING HOUSES.

THAT'S ALSO VERY EXCITING, BUT, UM, FOR SOMEONE LIKE ME, THAT'S NEVER OWNED A HOME IN AUSTIN, I'M WORRIED ABOUT, WILL I EVER BE ABLE TO AFFORD TO DO THAT? AM I BEING PRICED OUT OF A MARKET LIKE THAT? RIGHT.

WHAT WOULD YOU SAY IS OUR BEST STRATEGY TO TRY TO MITIGATE THE INCREASED RISE OF HOUSING COSTS? LIKE WHAT SHOULD WE DO AS POLICYMAKERS TO TRY TO HELP FOLKS GET INTO THEIR FIRST HOME OR THEIR FOREVER? THERE'S A LOT OF THINGS THAT OBVIOUSLY YOU CAN'T TACKLE AS FAR AS LIKE INTEREST RATES LIKE EMILY WAS TALKING ABOUT.

UM, AS FAR AS, UM, SUPPLY AND, AND LABOR SHORTAGES, THERE ARE THINGS THAT YOU CANNOT DO TO ADDRESS THOSE PROBLEMS. UM, BUT ONE THING THAT, THAT I'M REALLY GLAD THAT WE'RE ABLE TO PARTNER WITH THE NEIGHBORHOOD, UM, NOT AN, UH, HOUSING PLANNING DEPARTMENT, THAT'S, SCOTT'S CALLING THEIR OLD NAME, UM, IS BEING ABLE TO PROVIDE THEM DATA SO THAT THEY CAN HAVE AN INCREASED CAP ON THE DOWN PAYMENT ASSISTANCE PROGRAM THAT THEY'RE WORKING ON.

UM, SO THAT'S ONE THING OBVIOUSLY THAT YOU CAN, THAT YOU'RE CONTINUING TO WORK ON.

UM, AND THEN ANOTHER THING IS ALLOWING FOR DIVERSITY IN HOUSING TYPES, ACROSS THE, ACROSS THE CITY, UM, IN LOTS OF DIFFERENT PLACES, UM, YOU KNOW, DIVERSITY IN HOUSING TYPES DOESN'T HAVE TO MEAN A GIANT SCARY DEVELOPMENT THAT LOOKS OVER, UM, A SINGLE FAMILY HOME.

IT CAN, IT CAN LOOK LIKE A LOT OF DIFFERENT THINGS.

I HAVE FRIENDS THAT LIVE IN HOUSTON AND TOWNHOMES ARE EVERYWHERE IN HOUSTON.

NOW, OF COURSE, IT'S NOT GREAT TO COMPARE OURSELVES TO HOUSTON BECAUSE THEY DON'T HAVE ZONING.

UM, AND SO THEY HAVE A WHOLE HOST OF OTHER ISSUES, UM, BUT DIVERSITY OF HOUSING TYPES, UM, THAT MEET PEOPLE WHERE THEY ARE AND ALLOW THEM TO LIVE IN THE PLACE WHERE THEY WANT TO LIVE, UM, WILL ALLOW MORE SUPPLY TO COME ONLINE.

AND,

[00:30:01]

UM, THE PRICES, UNFORTUNATELY LIFE LIKELY ARE NOT TO GO DOWN, BUT TO INCREASE LESS, I WOULD SUGGEST TOO, THAT OPERATIONALLY, WE NEED TO CONTINUE, CONTINUE TO LOOK AT THE PLANNING AND DEVELOPMENT PROCESS, NOT JUST IN THE CONTEXT OF THE TOOLS THAT ARE ALLOWED IN THE CODE, BUT THE TIME SPENT WAITING ON THE PERMITTING, THE TIME SPENT WAITING ON THE PROCESS TO, TO KICK THROUGH IS JUST EXPENSE ADDED TO THE BACK END WHEN IT COMES TO, YOU KNOW, BRINGING THAT, THAT HOUSING UNIT TO MARKET.

SO WE, WE WANT TO CONTINUE TO BE FOCUSED ON OPERATIONAL EFFICIENCIES AND IMPROVEMENTS IN THE ACTUAL PLANNING AND DEVELOPMENT PROCESSING THE ADMINISTRATIVE ASPECTS.

IN ADDITION TO PROVIDING NEW TOOLS THAT MIGHT ALLOW FOR HOUSING STOCK TO COME ONLINE FASTER.

AND THEN LASTLY, YOU KNOW, WAGES WILL CONTINUE TO PLAY A ROLE.

UM, I DON'T, I DON'T THINK THAT JENNY HAD THIS SIDE, BUT THERE'S ANOTHER SIDE THAT WOULD LIKE TO OFFER YOU DID THAT DID SHOWS THE GAP, YOU KNOW, BETWEEN THE COST OF HOUSING AND THE INCREASES IN WAGES LOCALLY.

AND THAT WILL CONTINUE TO BE SOMETHING, UM, THAT'S AN IMPORTANT CONVERSATION IN TERMS OF JUST IDENTIFYING A LIVING WAGE THAT IS WITHIN REASON AS IT RELATES TO THIS HOUSING MARKET AND THE COST OF LABOR.

THOSE ARE REALLY GREAT POINTS.

AND OBVIOUSLY MY COLLEAGUE CHAIR CASAR HAS DONE A LOT OF WORK ON LIVING WAGE AND MINIMUM WAGE AND TRYING TO MAKE SURE THAT WORKERS HAVE THE MONEY THEY NEED TO STAY IN THE CITY THAT THEY LOVE.

UM, SO THOSE, THOSE ARE ALL REALLY IMPORTANT POINTS.

I KNOW WE TALK ABOUT HOW LONG IT TAKES TO GET THROUGH THE PERMITTING PROCESS.

WHAT DOES OUR LAND DEVELOPMENT CODE ALLOW FOR? MY LAST APARTMENT WAS 423 SQUARE FEET.

AND FOR A SINGLE INDIVIDUAL, IT WORKS JUST FINE.

I KNOW THAT'S NOT IDEAL FOR EVERYONE.

UM, BUT I DO THINK WE NEED THAT DIVERSITY OF HOUSING STOCK AS PEOPLE ARE EITHER COMING OUT OF COLLEGE OR IN COLLEGE AND NEED SOMETHING AFFORDABLE, THAT'S CLOSE TO WHERE THEY ARE GOING TO SCHOOL, CLOSE TO WHERE THEY'RE WORKING AND FOR SENIORS TO DOWNSIZE FROM THEIR TWO STORY HOUSE AND TO BE ABLE TO STAY IN THE NEIGHBORHOOD THAT THEY KNOW AND LOVE CLOSE TO THEIR SUPPORT NETWORK.

SO THEY CAN BE CLOSE TO THE FRIENDS AND FAMILY THAT THEY RELY ON.

AND SO I THINK THAT'S A REALLY IMPORTANT PART OF HOW WE ALLOW FOR OUR HOUSING TO EVOLVE OVER THE YEARS.

FOR ME, IN PARTICULAR, PART OF THE REASON THAT WE FOCUS ON DIVERSITY OF HOUSING IS THAT A PROPERLY BALANCED MARKET IS ONE THAT IS SEGMENTED.

AND THE WAY THAT YOU CREATE A SEGMENTED MARKET WITH LOTS OF DIFFERENT PRICE CLASSES OF HOUSING IS TO CREATE DIFFERENT SIZES OF HOUSING, DIFFERENT TYPES OF HOUSING.

WHAT HAPPENS TODAY IS THAT SO MUCH OF OUR HOUSING IS CONCENTRATED IN TRADITIONAL SINGLE FAMILY.

THAT FOLKS ARE THAT BECAUSE THAT'S, WHAT'S AVAILABLE TO THEM, THEY MIGHT BE WILLING TO OCCUPY MIDDLE DENSITY AT A LOWER PRICE POINT AND BRING DOWN THE TOTAL COST OF THE MARKET IF IT WAS MADE AVAILABLE TO THEM.

AND IF IN A FUTURE MEETING, YOU GUYS WOULD LIKE IT.

I KNOW THAT THE ECONOMISTS OVER THE TEXAS A AND M REAL ESTATE CENTER CAN EXPLAIN THAT MUCH BETTER THAN I CAN, BUT THEY CAN KIND OF TALK YOU THROUGH WHAT HAPPENS WHEN YOU BALANCE OUT.

IT'S NOT ABOUT JUST DELIVERING IMMEDIATE CAPACITY IN THE FORM OF GIANT DENSITY TOMORROW.

IT'S ABOUT PROVIDING THE RIGHT CAPACITY AT THE RIGHT DENSITY LEVEL AT THE RIGHT SPOT, YOU KNOW, TO PROPERLY BALANCE OUT THAT MARKET.

WELL, AND TO ADD ON TO EMILY'S POINT IS A LOT OF TIMES PEOPLE THINK I WANT TO LIVE IN THIS TYPE OF HOME BECAUSE THIS IS THE TYPE OF HOME THAT I'M USED TO SEEING WHEN THEY SEE OTHER TYPES OF HOMES THAT MEET THEIR NEEDS THAT LOOK DIFFERENT AND FIT A DIFFERENT TYPE OF, UM, LIFESTYLE OR PERSPECTIVE, THEN THERE IS MUCH MORE, UH, NEIGHBORHOOD WELCOMING OF, OF THAT DIVERSITY.

WELL, THANK YOU ALL AGREE WITH THAT.

UM, I ALSO, UM, WE HAVE OUR NEW CITY DEMOGRAPHER HERE, UM, MS. VALENCIA.

AND SO IF YOU WANT TO, UH, TUNE IN HERE WELCOME, UH, AND, AND ANYTHING THAT YOU WANT TO ADD TO THIS POINT.

I MEAN, I THINK THAT, UM, OBVIOUSLY THE, UH, YOU, YOU WOULD HAVE STUFF TO ADD HERE INTO THIS CONVERSATION ABOUT, UH, HOW OUR DEMOGRAPHICS MIGHT CONTINUE TO FURTHER, UH, IMPACT THIS ISSUE.

UH, OBVIOUSLY W ONE SORT OF THING WE HAVEN'T EXPLICITLY SAID SO FAR IS THAT THOSE FOLKS WHO MAY NOT BE ABLE TO PAY AS MUCH IN CASH OR BRING WITH, BRING AS MUCH OF A DOWN PAYMENT OR BE ABLE TO OFFER THAT MUCH, UH, HIGHER ABOVE ASKING PRICE WILL INCREASINGLY BE EXCLUDED FROM THE CITY.

AND THAT'S A REALLY SERIOUS ISSUE, BUT ANYTHING THAT YOU WANT TO ADD, MS. VALENCIA AND WELCOME.

AND THANK YOU FOR JOINING.

THANK YOU, CHAIR SR.

AND, UM, JENNY AND EMILY, THANK YOU FOR YOUR PRESENTATION.

AND I JUST REALLY JUST WANTED TO ADD, I THINK YOU GUYS REALLY SPOKE TO, UM, SORT OF THE INCREASE IN PRICES AND THE, AND THE SHORTAGE AND THE INVENTORY, BUT PART OF THE INCREASE IN DEMAND ALSO IS VERY DEMOGRAPHIC IN NATURE, RIGHT? WHERE WE'RE SEEING SO MANY,

[00:35:01]

UM, IN OUR POPULATION, UM, YOU KNOW, ONE OF THE LARGEST SUBSETS OF OUR POPULATION THAT THE MILLENNIAL GENERATION IS REACHING THAT VERY IMPORTANT MILESTONE OF THE HOME-BUYING AGE.

AND WHILE THEY HAVE BEEN HOLDING OFF ON THAT, NOW THEY'RE REALLY IN THE JOB MARKET TAKING ADVANTAGE OF THESE LOWER INTEREST RATES AND REALLY, YOU KNOW, JUMPING IN AT A TIME WHERE LOTS OF OTHER PEOPLE ARE ALSO JUMPING IN.

BUT ADDITIONALLY, UM, ONE OF THE THINGS THAT WE KNOW IS ALSO HAPPENING IS THAT THE CITY IS GROWING MORE AND MORE FROM PEOPLE MOVING INTO THE, THEN FROM NATURAL INCREASE.

AND A LOT OF TIMES THAT TYPE OF GROWTH CAN PLACE A VERY, UM, QUICK, UM, DEMANDS ON THE INFRASTRUCTURE AND ESPECIALLY HOUSING AVAILABILITY.

BECAUSE IF YOU THINK OF A CHILD THAT'S ADDED TO A POPULATION THEY'RE USUALLY ADDED TO AN ALREADY EXISTING HOUSEHOLD, YOU KNOW, THEY'RE NOT, UM, USING UP OTHER, UM, SORT OF SERVICES AND, AND, YOU KNOW, INFRASTRUCTURE IN THE CITY.

THEY'RE NOT GOING TO BE GOING TO SCHOOL FOR A FEW YEARS OR DRIVING A CAR ON THE HIGHWAY FOR A FEW YEARS.

SO THAT KIND OF IS LAGGED IN THE IMPACT THAT IT HAS ON, ON RESOURCES, BUT IN MY GRACIAN IS AN IMMEDIATE IMPACT.

A PERSON MOVING INTO THE AREA OF TYPICALLY WORKING AGE IS GOING TO BE LOOKING FOR A PLACE TO LIVE.

AS SOON AS THEY MOVE HERE, THEY'RE GOING TO BE ADDING A VEHICLE TO THE HIGHWAY OR TAKING UP ANOTHER SEAT ON OUR PUBLIC TRANSIT.

AND SO THAT IMPACT IS VERY IMMEDIATE.

AND RIGHT NOW ABOUT 75% OF OUR GROWTH IN THE CITY IS COMING FROM PEOPLE MOVING INTO THE CITY.

SO THAT'S DEFINITELY, YOU KNOW, SOMETHING TO, UM, TAKE INTO CONSIDERATION BECAUSE IT DEFINITELY WILL ADD TO THAT INCREASED DEMAND, UM, ON THE HOUSING MARKET.

THANK YOU FOR THAT.

AND I JUST THINK THAT SOMETHING THAT I, UH, WHEN I HAVE THESE CONVERSATIONS IN OUR NEIGHBORHOODS, IT WITH COMMUNITY MEMBERS IS TO REMIND FOLKS THAT, UM, THE QUESTION WILL ALSO BE, UM, OF THE FOLKS, UM, MOVING HERE AND OF THE FOLKS LIVING HERE WHO WILL HAVE ACCESS TO THE CITY AND WHO WILL BE PUSHED OUT TO THE EDGES.

AND SO MUCH OF THAT IS DETERMINED BY BY PRICE.

SO WHEN SOMEBODY IS DECIDING WHETHER THEY WANT TO STAY HERE, BECAUSE THEY'RE GOING TO BUY INSIDE THE CITY, OR WHETHER THEY'RE GOING TO MOVE, LEAVE OUR CITY AND MOVE OUT OF THE CITY THAT THEY LOVE, IT MIGHT BE BECAUSE THEY ARE COMPETING WITH 20 OR 30 OTHER PEOPLE FOR THE SAME HOUSE.

AND IT WOULD BE SO MUCH BETTER IF THEY WERE JUST ACTUALLY ABLE TO, TO GET A HOUSE.

AND SO WHETHER PEOPLE ARE MOVING HERE AND WHO IS MOVING HERE AND WHO LIVES HERE, IF WE'RE ALL COMPETING OVER THE EXACT SAME HOUSING STOCK, THEN, THEN THE RESULTS ARE, ARE, ARE PREDICTABLE AND UNFORTUNATE.

AND WE ARE SEEING HERE IN THE LAST SIX MONTHS, UH, THOSE UNFORTUNATE CONSEQUENCES AT A SCALE THAT IS UNHEARD OF HERE IN ALMOST ANYWHERE ELSE IN THE COUNTRY.

SO I APPRECIATE THAT.

WE'VE BEEN ABLE TO HAVE THIS CONVERSATION AND I HOPE AND EXPECT THAT MEMBERS OF THIS COMMITTEE, BUT MEMBERS OF THE DIOCESE, UM, IN GENERAL, THAT WE CAN COME TOGETHER TO, TO UNCOMMON GROUND SOLUTIONS THAT CAN, CAN ADDRESS THE LACK OF HOUSING, DIVERSITY ADDRESS, THE LACK OF HOUSING, UH, IN GENERAL ON THE MARKET.

AND SO THAT WE CAN START TURNING THAT GRAPH AROUND SOME AND STOP HAVING THAT CONTINUED DIP AND HOUSING INVENTORY KEEP DRIVING UP, UH, HOUSING COSTS.

SO THANK YOU.

ANY, ANY LAST THOUGHTS BEFORE WE MOVE ON TO OUR LAST TWO ITEMS? Y'ALL THANK YOU SO MUCH FOR HAVING US, ALLOWING US TO BE PART OF THE CONVERSATION.

UM, EACH MONTH I SEND THE MARKET STATS OUT TO, UM, ALL OF Y'ALL ON YOUR COLLEAGUES, AND I'LL BE SENDING THOSE LATER ON TODAY, AND I'M GOING TO INCLUDE THIS PRESENTATION AS AN ATTACHMENT TO THAT.

SO THAT, UM, THOSE ON THE DIETS WHO ARE NOT ON THIS COMMITTEE, WHO WEREN'T IN THIS MEETING ARE ABLE TO LOOK AT IT AS WELL.

WELL, I'LL KEEP REPEATING IT.

IT'S JUST, I THINK IT IS A, IT IS AN ISSUE OF SUCH HIGH URGENCY.

AND SO I WILL START, UH, I, IF YOU KEEP SENDING IT TO ME, I'LL JUST MAKE SURE TO KEEP MENTIONING DURING THE COUNCIL MEETING, UH, EVEN IF IT IS, UH, IT'S SCARY, YOU KNOW, STATS, BUT THEY ARE, THEY ARE, THEY ARE FACTS THAT WE ARE $110,000 MORE EXPENSIVE THAN WE WERE IN JANUARY IF YOU'RE TRYING TO BUY A HOUSE.

OKAY.

THANK YOU.

THANK YOU FOR BRINGING THIS TO OUR ATTENTION, AND NOW IT'S UP TO US TO WORK ON IT.

THE BEST WE CAN.

BYE.

HI,

[3. Briefing on the impact of the Rental Housing Development Assistance (RHDA) and Ownership Housing Development Assistance (OHDA) Programs on housing production.]

NEXT, WE ARE, UH, CALLING UP, UM, OUR HOUSING STAFF TO GIVE US A BRIEFING ON OUR RENTAL HOUSING AND OWNERSHIP, HOUSING, UH, PRODUCTION THAT WE ARE SUPPORTING AS A CITY FOR LOW-INCOME PEOPLE.

ALL RIGHT.

I GUESS THAT'S ME.

HI, I'M UH, MY NAME IS JAMIE NAME WITH THE HOUSING PLANNING DEPARTMENT, UH, COMMUNITY DEVELOPMENT MANAGER OVERSEEING THE, UH, DEVELOPMENT ASSISTANCE PROGRAM.

UM, THERE IT IS.

UH, WE WERE, UH, ASKED BY COUNCIL TO PUT TOGETHER A FEW SLIDES SHOWING THE HISTORY

[00:40:01]

OF THE RENTAL HOUSING AND OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE PROGRAMS. UH, JUST TO, UH, SEE HOW WE'VE DONE OVER THE LAST, UH, LET'S SAY DECADE AND A HALF.

UM, THE, WE DID START BY LOOKING BACK EVEN FURTHER.

UM, BUT, UH, I THINK THAT WE FOUND SOME, UH, UH, SOME REALLY GOOD BREAK POINTS TO, TO HIGHLIGHT, UH, THE PRODUCTION OF RENTAL HOUSING IN OUR SHIP HOUSING OVER THE LAST, UH, LET'S SAY 10 YEARS.

UH, WE'LL GO TO THE NEXT SLIDE.

SO THIS SHOWS THE AWARD VALUE PER YEAR.

UH, AS YOU CAN SEE IN THE FIRST, UH, FOUR YEARS, UH, THE AWARD VALUES WERE LOW, UH, NO MORE THAN $2 MILLION AWARDED PER YEAR.

UH, AND THEN THAT FIRST AFTER THAT FIRST LINE, THAT FIRST LINE REPRESENTS THE 2013 GENERAL OBLIGATION BONDS THAT WERE ADOPTED.

UH, AND THROUGH THAT THOSE FIVE YEARS, WE WERE DEPLOYING THOSE, UH, 2013 GEO BONDS.

UH, YOU CAN SEE IT TICKED UP A LITTLE BIT, UH, TO AROUND $15 MILLION PER YEAR.

UM, LET ME TURN OFF MY VIDEO.

THERE WE GO.

UM, THE SECOND LINE REPRESENTS THE 2018 GENERAL OBLIGATION BONDS THAT THE CITIZENS VOTED TO APPROVE.

IT WAS A TOTAL OF $126 MILLION FOR THE HOUSING DEVELOPMENT ASSISTANCE PROGRAM.

THAT'S 96 MILLION FOR, UH, THE, UH, OUR HDA OR RENTAL HOUSING DEVELOPMENT ASSISTANCE.

AND THEN THE REMAINDER FOR, UH, THE OWNERSHIP HOUSING DEVELOPMENT ASSISTANCE.

AND FIRST YEAR YOU CAN SEE THAT WE DEPLOYED ROUGHLY $34 MILLION.

THAT INCLUDES, UH, THE FIRST TRAUNCH OF GENERAL OBLIGATION BONDS AS WELL AS FEDERAL, UH, OUR FEDERAL GRANTS.

SO OUR HOME FUNDS, AS WELL AS OUR CDBG FUNDS, UH, WE ALSO USE SOME HOUSING TRUST, FUNDS DOLLARS, UH, AS WELL AS SOME ADDITIONAL, UH, LOCAL FUNDS, UH, THAT ARE GEOGRAPHICALLY SPECIFIC, UH, SUCH AS THE NORTH BURNET GATEWAY.

UH, I'M GOING TO NEXT SLIDE.

SO THESE ARE THE, UH, UH, AMOUNTS OF FUNDS OR THE, THE PERCENTAGE OF, UH, FUNDS FROM DIFFERENT SOURCES.

AS YOU CAN SEE, THE GENERAL OBLIGATION FUNDS ARE, ARE FAR AND AWAY.

THE LARGEST TWO SOURCES, UH, THAT WE USE IT'S APPROXIMATELY 75% OF OUR, UH, OUR DEPLOYMENT COMES FROM THE GENERAL OBLIGATION BONDS, BUT WE DO RELY HEAVILY ON OUR FEDERAL FUND DOLLARS, AS WELL AS OUR HOUSING TRUST FUND.

WE'LL GO TO THE NEXT ONE.

OKAY.

OF COURSE OF THE YEAR, UH, WHERE WE COLLECT THE APPLICATION AND THEN DISTRIBUTE THE FUNDS, A NEW UNITS ARE COMMITTED BY DEVELOPERS, UH, AS A PART OF THEIR AWARD.

UH, WE ALSO DEPLOY, UH, FUNDS TO PREVIOUSLY AWARDED, UH, DEVELOPMENTS.

UH, SO THOSE UNITS AREN'T CAPTURED IN THIS SLIDE.

THIS IS JUST THOSE UNITS THAT ARE, UH, FUNDED FOR THE FIRST TIME, UH, IN THAT FISCAL YEAR.

UM, AND LET'S GO AHEAD AND LOOK AT, UH, FISCAL YEAR 16, 17, UH, CAUSE THAT SEEMS TO BE, UH, UH, JUMPING OUT AT US.

SO LET'S GO TO THE NEXT SLIDE.

OH, DID WE MISS ONE? OH, OUT THERE IT IS.

YES.

UM, SO IN, UH, FISCAL YEAR 16, 17, UH, WE DEPLOYED APPROXIMATELY $15,015 MILLION TO NEW DEVELOPMENTS FOR RENTAL HOUSING DEVELOPMENT, UH, IN EXCHANGE FOR 505 NEW RHD UNITS.

NOW, AN RHD, A UNIT IS ONLY ARE ONLY THOSE UNITS THAT ARE, UH, AFFORDABLE TO HOUSEHOLDS EARNING LESS THAN 50% OF THE MEDIAN FAMILY INCOME.

WE ALSO CALCULATE, UH, SOME OF THOSE AS EARNING LESS THAN 30% OF THE MEDIAN FAMILY INCOME, SO AN EVEN DEEPER, DEEPER LEVEL OF AFFORDABILITY.

UM, BUT IN THAT LAST COLUMN, YOU CAN SEE THAT SEVERAL OF THESE DEVELOPMENTS NEEDED ADDITIONAL FUNDING IN ORDER TO GET ACROSS THE FINISH LINE.

UM, FOR EXAMPLE, GO VALLEY TERRORISTS RECEIVED AN ADDITIONAL $4 MILLION IN FISCAL YEAR, 18 TO 19, AND THAT'S NATURAL DUE TO BUILDING OUT YOUR CAPITAL STACK.

YOU'RE GOING TO FIND DIFFERENT SOURCES.

WE DO TALK TO OUR DEVELOPERS, ASK THEM TO ONLY COME SEE US ONCE I TELL THEM WE LOVE TO SEE YOU, BUT I ONLY WANT TO SEE YOU LAST.

UM, MOSTLY BECAUSE WE, WE DON'T WANT TO BE THE FIRST ONE AT THE PARTY.

UM, SO WHEN, UH, WHEN A DEVELOPER SUCH AS THE JORDAN COMES IN, UH, WITH 80 UNITS, UH, FOR $4 MILLION ASK, UH, WE CONFIDENT THAT THOSE 80 UNITS CAN BE DEVELOPED FOR THAT $4 MILLION.

AND, UH, THERE WON'T BE A SECOND SET OF FUNDS BEING REQUESTED.

SO WE ARE, WE ARE LEARNING TOGETHER AS A GROUP.

UM, BUT WHAT YOU CAN SEE HERE IS THOSE 500 UNITS DEDICATED IN FISCAL YEAR 16, 17, UH, DID NOT COST $15 MILLION IN CITY SUBSIDIES.

THEY, THE TOTAL SUBSIDY WAS CLOSER TO 20, UH, 25 MILLION.

UM, AND AGAIN, THAT'S, UH, THAT'S RIGHT ON PAR WITH WHERE WE WANT TO

[00:45:01]

HIT IN TERMS OF OUR SUBSIDY PER UNIT, UH, LEVEL.

WE'LL GO TO THE NEXT SLIDE.

SO AS PART OF THAT GROUP OF RHD UNITS, WE ALSO ATTRACT PERMANENT SUPPORTIVE HOUSING AND CONTINUUM OF CARE UNITS.

NOW PERMANENT SUPPORTIVE HOUSING IS AN IMPLEMENTATION.

UH, THE, THE HOUSING UNIT IS SUPPORTED WITH, UH, SERVICES PERMANENTLY, SO THAT THE INDIVIDUAL WHO HAD PREVIOUSLY EXPERIENCED HOMELESSNESS HAS WRAPAROUND SERVICES, UH, SO THAT THEY DO NOT FALL BACK INTO HOMELESSNESS.

CONTINUUM OF CARE IS A WAY IN WHICH WE, UH, HOUSE THOSE UNITS OR OCCUPY THOSE UNITS.

SO AN INDIVIDUAL COMING OFF OF THE COORDINATED ASSESSMENT WOULD GO INTO A PERMANENT SUPPORTIVE HOUSING UNIT.

SO THERE'S A LITTLE DIFFERENCE IN TERMINOLOGY.

UM, BUT THAT WAY WE CAN COUNT BOTH.

UH, AND AS YOU CAN SEE, IF WE'LL GO TO THE NEXT SLIDE IN FISCAL YEAR 14, 15, UH, 50 CONTINUUM OF CARE UNITS WERE DEDICATED BY PARIS AT OAK SPRINGS.

NOW THIS DEVELOPMENT WASN'T ACTUALLY COMPLETED UNTIL FISCAL YEAR 1920.

SO IT TAKES ABOUT FIVE YEARS FOR, UH, OR IT TOOK ABOUT FIVE YEARS FOR TERRORISTS AT OAK SPRINGS TO COMPLETELY BUILD UP ITS ENTIRE CAPITAL STACK, GO THROUGH CONSTRUCTION AND THEN HOUSED INDIVIDUALS.

UM, WE HAVE A SECOND, UH, LARGE COC, UH, INVESTMENT IN FISCAL YEAR, 1920 AT THE SPARROW AT RUTLAND WITH AN ESTIMATED COMPLETION DATE, SOMEWHERE IN NOVEMBER OF 20, UH, 2022, UM, POSSIBLY LATER, UM, AS WITH DEVELOPMENT, YOU NEVER KNOW WHAT A, UH, WHAT A TIMELINE WILL ACTUALLY LOOK LIKE.

SO WE'RE, WE'RE PROGRAMMING THAT FOR FISCAL YEAR 23, 24 OPENING.

IT COMES IN BEFORE THAT, BUT THAT JUST HIGHLIGHTS THE LENGTH OF TIME THAT THE DEVELOPMENT PROCESS ACTUALLY TAKES.

AND WE'LL GO TO THE NEXT LINE.

SO ALSO, UH, IN TERMS OF, UH, FUNDING AND PROGRAMS, WE ALSO HAVE OUR OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE PROGRAM.

UM, LOOKING BACK AT THE LAST SEVEN, UH, SEVEN YEARS, YOU CAN SEE THAT IN FISCAL YEAR, FIFTEEN, SIXTEEN, A HUNDRED AND ONE NEW 80% UNITS, UH, WERE COMMITTED AGAIN BECAUSE OF THE PACE OF DEVELOPMENT.

UH, THOSE UNITS AREN'T COMPLETE, UH, IT TAKES A WHILE FOR THOSE UNITS TO BE, UH, COMPLETE AND OCCUPIED AND THEN SOLD, WE'LL GO TO THE NEXT UNIT.

OKAY.

SO THIS IS THE ANNUAL PRODUCTION OF LEASED AND SOLD UNITS, UM, IN TERMS OF WHAT WE HAVE OCCUPIED.

SO ALL OF THESE WERE COMMITTED IN PRIOR FISCAL YEARS AND THEN OCCUPIED IN THE FISCAL YEAR AND NOTED ON THE SLIDE.

UH, AND YOU CAN SEE THAT IN FISCAL YEAR 13 THROUGH 18, WE HAD A STEADY INCREASE AND THEN A DROP OFF IN FISCAL YEAR, 1819.

PART OF THAT IS DUE TO, AGAIN, THE PACE OF DEVELOPMENT.

WE JUST HAD A WHOLE BUNCH OF, UH, UH, UH, PROJECTS THAT GOT TO COMPLETION IN THAT, UH, IN THOSE FIRST 3, 15, 16, AND 17 FISCAL YEARS.

UM, AND THEN WE HAD A, KIND OF A BREAK, UM, AS WE WERE FUNDING PRIOR, UH, DEVELOPMENTS, WE HADN'T RECEIVED ANY REAL NEW PROJECTS COME ONLINE.

AND SO NOW IN FISCAL YEAR, 1920, WE SEE ADDITIONAL, WE SEE IT RAMPING BACK UP TO WHERE IT WAS IN FISCAL YEAR, 17, 18, UM, THROUGH APRIL OF THIS FISCAL YEAR WHERE ALREADY MORE THAN HALF OF WHERE WE WERE LAST YEAR.

UH, SO WE WILL, WE'LL SEE WHERE WE END UP, UH, COME OCTOBER, WE'LL GO TO THE NEXT SLIDE.

AND THEN THIS IS WHAT WE HAVE IN OUR PIPELINE.

THIS IS WHAT WE HAVE, UH, THAT WE CAN EXPECT TO SEE IN THE NEXT SEVERAL YEARS, UM, FOR THE OWNERSHIP HOUSING DEVELOPMENT ASSISTANCE, WE HAVE, UH, SEVERAL 40% UNITS, UM, THAT HAVE BEEN COMMITTED.

UH, BUT YOU CAN SEE THAT WE HAVE ABOUT 310, UH, 80% RESTRICTED OWNERSHIP, HOUSING UNITS, UH, UNDER PRODUCTION RIGHT NOW.

AND THAT INCLUDES, UM, UH, CONDOS AS WELL AS SINGLE FAMILY UNITS, AS WELL AS TOWNHOUSES.

UH, SO WE ARE TRYING TO, TO INVEST IN THAT MIXTURE OF UNIT TYPE, YOU GO TO THE NEXT SLIDE, AND THIS IS RENTAL HOUSING PIPELINE.

UH, THE BARS HERE DON'T REPRESENT A TIME GAP, BUT REALLY JUST AN, A GROUPING.

SO THE FIRST TWO, UH, UH, UNITS, COC UNITS, AND PSH UNITS, YOU CAN SEE THAT WE HAVE 605 PSH UNITS PENDING.

SO THEY HAVE BEEN FUNDED.

THEY ARE IN SOME STAGE OF, UH, CONSTRUCTION OR DEVELOPMENT, EITHER AT PRE-DEVELOPMENT OR AT PRE-LEASING.

UH, THOSE UNITS ARE DUPLICATED IN THE 30%, 40% AND 50% UNITS.

SO, UH, THEN WE DON'T HAVE A TOTAL OF 1800 UNITS ACROSS THAT.

IT'S CLOSER TO ABOUT 1500 UNITS, TOTAL PENDING, BUT 1500 TOTAL UNITS PENDING OVER THE NEXT SEVERAL YEARS.

UM, DOES GET AS CLOSER TO,

[00:50:01]

TO, TO OUR GOAL.

WE KNOW THAT IT'S NOT, UH, IT'S NOT ENOUGH, UH, BUT WE, WE ARE PROUD OF, UH, SEEING THAT PIPELINE, UH, GETTING FILLED.

AND THEN THE LAST GROUP ARE THOSE UNITS THAT WE DON'T FUND, UH, JUST TO SHOW THAT EVEN WHEN WE HAVE 1500 AFFORDABLE UNITS IN A DEVELOPMENT, WE CAN ALSO BRING, UH, TO MARKET ALMOST A THOUSAND UNITS THAT ARE NOT YET.

UM, WE'LL, WE'LL GO TO THE NEXT SLIDE.

SO WE DO WHAT WE ARE IN THE BEGINNING OR MIDDLE OF A, A, OF OUR FINAL WRAP ROUND OF APPLICATIONS FOR THIS CURRENT FISCAL YEAR.

UH, WE HAVE SEVERAL DEVELOPMENTS ARE REQUESTING FUNDS, AND I'D BE HAPPY TO TALK THROUGH ANY OF THESE, BUT YOU CAN SEE THERE'S A GOOD MIX OF RENTAL HOUSING DEVELOPMENT, ASSISTANCE PROGRAMS, AND OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE PROGRAM.

I'LL POINT OUT THAT THE THREE HIGHLIGHTED, UH, UH, PROJECTS ARE THOSE THAT ARE IN COMPETITION FOR THE 9% LOW-INCOME HOUSING TAX CREDIT, WHICH WILL BE AWARDED IN LATE JULY.

UH, THE WINNERS OF THOSE, UH, LOW-INCOME HOUSING TAX CREDITS ARE THEN BROUGHT TO COUNCIL SHORTLY THEREAFTER, UH, FOR THE RENTAL HOUSING DEVELOPMENT ASSISTANCE PROGRAM AMOUNT.

UH, THIS YEAR, THOSE THREE PROJECTS ARE REQUESTING A TOTAL OF $8.7 MILLION.

IT'S A LARGE NUMBER.

UM, BUT FOR THAT 8.7 MILLION, UH, WE WOULD SEE 43, UH, UH, OUR HDA UNITS, UH, SES ON NORTH 82 UNITS AT PARKER APARTMENTS IN 42 UNITS THAT JUNE WEST, UH, WE ALSO HAVE A COUPLE OF, I'D SAY, LARGE TICKET ITEMS ON THIS, UH, CHART.

UH, ONE IS, UH, THE PATHWAYS AT ROSEWOOD COURT, WHICH IS LOOKING FOR A $7 MILLION INVESTMENT.

AND THE OTHER IS THE HOTEL CONVERSION PROJECT, UM, WHICH IS LOOKING FOR A $16 MILLION INVESTMENT.

IF WE WERE TO, UH, APPROVE OR RECOMMEND APPROVAL FOR ALL OF THESE INVESTMENTS, IT WOULD COST US A LITTLE OVER $39 MILLION, WHICH IS A LARGE NUMBER THAT WE DON'T, WE DO NOT HAVE, WHICH IS WHY OUR STAFF WORKS WITH THESE DEVELOPERS TO NOT ONLY DRIVE THESE NUMBERS DOWN, BUT TO SELECT THE APPROPRIATE, UH, INVESTMENT AT THE RIGHT TIME.

WE'LL GO TO THE NEXT SLIDE.

AND FINALLY, AS WE MOVE INTO THE NEXT FISCAL YEAR, UH, WE HAVE A FEW ITEMS THAT WE'RE, WE'RE CONSIDERING TO, TO HELP BUILD MORE UNITS AND GET MORE UNITS IN OUR PIPELINE.

UH, FIRST, UH, WE'RE WORKING WITH OUR, OUR COHORTS AT, UH, HOUSING AND PLANNING DEPARTMENT TO BETTER ALIGN OUR PROGRAM WITH THE OTHER DEVELOPMENT INCENTIVE PROGRAMS, INCLUDING, UH, AFFORDABILITY ON LOCKED IN SMART HOUSING.

WE'RE ALSO LOOKING AT OUR, UH, 4% LOW-INCOME HOUSING TAX CREDIT PIPELINE RIGHT NOW, UH, AS A PRIVATE ACTIVITY BOND ISSUER, UH, AUSTIN HOUSING FINANCE CORPORATION HAS A LOT OF BUSINESS, AND, UH, WE ARE PROGRAMMED OUT FOR THE NEXT, UH, I BELIEVE IT'S A YEAR AND A HALF IN TERMS OF PRIVATE ACTIVITY, BONDS, SALES, NORMALLY THE 4%, UH, LOW-INCOME HOUSING TAX CREDIT AND PRIVATE ACTIVITY BOND, UH, DEVELOPMENT IS NON-COMPETITIVE.

HOWEVER, THESE PROGRAM, THIS PROGRAM HAS BECOME MUCH MORE COMPETITIVE OVER THE LAST SEVERAL YEARS.

WE ALSO HAVE OUR 9%, UH, PACKAGE COMING UP IN DECEMBER WHERE A COUNCIL WILL BE ASKED TO PASS RESOLUTIONS OF SUPPORT OR APPLICANTS SUPPLYING TO THE 9% LOW INCOME HOUSING TAX CREDIT.

UM, IN ORDER TO INCENTIVIZE PERMANENT SUPPORTIVE HOUSING, WHICH WE KNOW IS A, IS A PRIMARY GOAL, UH, FOR OUR HOUSING DEVELOPMENT, UH, WE'RE PUTTING TOGETHER A PACKAGE, UH, IF ANY DEVELOPER, UH, BRINGS FORWARD IN A PSH OR PERMANENT SUPPORTIVE HOUSING DEVELOPMENT, UH, AND RECEIVES THE 9%, UH, LOW-INCOME HOUSING TAX CREDIT, UH, THE RHD AWARD WOULD BE PART OF THAT OR THE RENTAL HOUSING DEVELOPMENT ASSISTANT AWARD, UH, THAT ALL 9% PROJECTS RECEIVE.

UM, WE'RE ALSO GOING TO WRAP IN SOME LOCAL HOUSING VOUCHERS.

UH, WE HAVE OUR HOUSING TRUST FUND THAT IS SUPPORTING, UH, SOME LOCAL HOUSING VOUCHERS, WHICH IS GUARANTEED OPERATING INCOME FOR A DEVELOPMENT.

UM, AND WE'RE ALSO WORKING CLOSELY WITH OUR FRIENDS AT, UH, AUSTIN PUBLIC HEALTH, UH, TO, UH, WRAP AROUND THE SUPPORT SERVICES THAT THOSE PERMANENT SUPPORTIVE HOUSING UNITS REQUIRE.

UH, SO WE'RE TRYING TO BRING, IT'S AN OVERUSED METAPHOR, BUT WE'RE TRYING TO BRING ALL THREE LEGS OF THE STOOL TOGETHER, UH, TO MAKE SURE THAT THESE UNITS CAN STAND ON THEIR OWN.

WE ALSO HAVE OUR HOTEL ACQUISITION, WHICH IS CURRENTLY, UH, CURRENTLY MOVING FORWARD, AS WELL AS ALL OF OUR PROJECT CONNECT, UH, UH, MOVEMENT.

UM, SO THESE ARE SOME OF THE RESOURCES THAT WE'RE LOOKING TO DEPLOY IN THE NEXT FISCAL YEAR, UH, TO REALLY MOVE THE NEEDLE ON NOT ONLY HOUSING AFFORDABILITY, BUT ALSO ON, UH, PERMANENT SUPPORTIVE HOUSING.

AND, UH, THE NEXT SLIDE IS THAT, THANK YOU.

AND I'D BE HAPPY TO ANSWER ANY QUESTIONS,

[00:55:06]

ANY QUESTIONS? UM, MY, MY ONE THING THAT I WOULD POINT OUT FOR FOLKS, BECAUSE YOU WOULD JUST HAVE A BAR GRAPH SPLIT UP ACROSS MULTIPLE SLIDES, BUT MAYBE WE CAN, UM, SORT OF MERGE THEM TOGETHER AT SOME POINT FOR, AT A FUTURE DATE.

BUT YOU CAN REALLY, IF YOU LOOK AT THE OWNERSHIP HOUSING AND THE RENTAL HOUSING DEVELOPMENT, YOU CAN REALLY SEE THAT, UH, HERE IN THE LAST COUPLE OF YEARS, THERE'S A REALLY SIGNIFICANT INCREASE.

AND THAT REALLY IS THANKS TO, UH, THE VOTERS APPROVING THE 2018 HOUSING BONDS.

UH, THERE'S JUST, WE'RE JUST DOING SO MUCH MORE HERE IN THE LAST COUPLE OF YEARS THAN IN ALL THE YEARS BEFORE IT, BUT, UH, BECAUSE WE LIKE TO BE REALLY DETAILED AND YOU HAVE IT SPLIT ACROSS PSH AND OWNERSHIP AND RENTAL.

IT'S NOT QUITE AS CLEAR, BUT ONCE YOU ADD IT ALL UP, YOU CAN REALLY TELL THAT THE VOTERS INVESTMENT IN AFFORDABLE HOUSING HAS THIS PRODUCING A LOT MORE, UM, AND HAVING A LOT MORE IN THE PIPELINE THAN EVER BEFORE COUNCILMEMBER, IF ONE SAYS, OR COUNCIL MEMBER ELLIS, ANYTHING ELSE I DO THINK THE OTHER POINT TO BE MADE HERE IS THAT, UM, THAT THE, THAT THE BIGGEST, UH, PIECE OF MONEY, THE ANTI-DISPLACEMENT DOLLARS ARE STILL YET TO BE DEPLOYED.

AND GIVEN WHAT WE SAW IN THE PRESENTATION BEFORE THIS, IT'S REALLY IMPORTANT FOR US TO GET THAT MOVING AS QUICKLY AS WE CAN, BECAUSE IF PRICES ARE GOING UP AND UP AND UP FOR THE EVERYDAY PERSON, THEN THAT MEANS DISPLACEMENT IS ACCELERATED.

THAT MEANS IT WILL BE EVEN MORE EXPENSIVE FOR THE CITY, UH, TO KEEP PEOPLE IN PLACE.

SO I KNOW THAT WE WANT TO GET IT RIGHT, BUT IT'S ALSO REALLY IMPORTANT FOR US TO GET THAT MOVING.

UM, YOU KNOW, OUR FIRST PRESENTATION WAS REALLY ABOUT HOME OWNERSHIP, MAYBE FOR THE EVERYDAY PERSON OR A MIDDLE-CLASS PERSON AND, AND THIS, UH, SOLUTION OF THE CITY COMING IN AND PROVIDING SUBSIDY, I THINK IS CRITICAL IF WE WANT TO KEEP LOW INCOME PEOPLE IN THE CITY COUNCIL MEMBER FRANCIS.

THANK YOU, CHAIR.

UM, I GUESS MY QUESTION IS, AM I RIGHT IN UNDERSTANDING THAT THE CITY INVESTED ABOUT 25 MILLION TO, AND NOT A MILLION INVESTMENT APPROXIMATELY EQUATES TO ABOUT 500 SUBSIDIZED UNIT? IS THAT RIGHT? UM, I CAN DO THE QUICK MATH.

YES.

UM, IT'S ABOUT 23 MILLION FOR 505, UH, RHD UNITS.

OKAY.

ALRIGHT.

ALRIGHT.

HDA UNIT.

OKAY.

SO COUNCIL MEMBERS, THIS IS MANDY DE MAYO WITH THE HOUSING AND PLANNING DEPARTMENT.

UM, TYPICALLY FOR OUR RUDA DEVELOPMENTS OR RENTAL HOUSING DEVELOPMENT ASSISTANCE, WE DON'T WANT TO, UM, WE DON'T WANT TO INVEST MORE THAN ABOUT $50,000 PER UNIT.

SO WE REALLY WORK WITH OUR DEVELOPMENT PARTNERS TO LEVERAGE OUR DOLLARS WITH ADDITIONAL FUNDING SOURCES.

THAT DOESN'T MEAN THAT IT ONLY COSTS 50,000 WHERE YOU HIT TWO TO BUILD.

WE HAVE THAT, UM, THE COST AND THE CITY OF AUSTIN AT EXCEED THAT.

UM, AND WE'RE SEEING OUR, OUR TOTAL ALL IN UNIT COSTS, PROBABLY IN THE, OR RENTAL HOUSING DEVELOPMENT, 175,000 TO 200,000 OR SOMEWHERE THERE ABOUT, UM, THAT'S WHAT WE SEE PER UNIT, BUT REALLY OUR DOLLARS TO SUBSIDIZE THE LOWEST INCOME UNITS, UM, ARE DOING THAT 50% AND BELOW MEDIAN FAMILY INCOME.

AND WE'D LIKE TO NOT EXCEED 50,000.

OKAY.

YEAH.

THAT'S HELPFUL.

AND TO GET TO, UM, CHAIR, HASSAN'S POINT ABOUT WHEN WE, LIKE, I'M JUST TRYING TO UNDERSTAND WHAT KIND OF LENS I SHOULD HAVE WHEN LOOKING AT THE ANTI-DISPLACEMENT DOLLARS THAT ARE PART OF PROJECT CONNECT.

SO UNDERSTANDING KIND OF WHAT, UM, THAT TYPE OF, UM, SUBSIDY EQUATES TO IS, IS HELPFUL.

UM, THE OTHER QUESTION I HAVE IS AROUND, UM, THE, THE MFI PERCENTAGE, YOU KNOW, THE 30, 40, 50 ALL THE WAY TO 80%.

IS THERE ANYTHING THERE THAT YOU ALL WOULD LIKE TO YOUR, IF YOU COULD SHARE A LITTLE BIT FROM YOUR EXPERTISE THAT, IS THERE A,