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[00:00:04]

THAT MEANS WE'RE ALL HERE.

[Call to Order ]

SO I WILL CALL US TO ORDER, UH, I'M GREG GOSSARD CHAIR OF THE HOUSING AND PLANNING COMMITTEE.

WE'RE JOINED BY ALL OF OUR MEMBERS, INCLUDING COUNCIL MEMBER ELLIS HERE ON THE DYESS COUNCIL MEMBERS, KITCHEN AND DENT DIDIA WHO IS VICE CHAIR, UH, VIRTUALLY AND THE MAYOR PRO TEM.

WE'RE ALSO JOINED BY COUNCIL MEMBER TOVO AS WELL.

IT IS 3:07 PM.

AND IS TUESDAY, OCTOBER 5TH.

WE'RE DOING A HYBRID MEETING.

UH, OUR FIRST ORDER OF BUSINESS

[1. Approve the minutes of the June 15, 2021 Housing and Planning Committee meeting.]

IS APPROVAL OF THE MINUTES.

WE HAVE A MOTION TO APPROVE THE MINUTES FROM JUNE 15TH, MOTION MADE BY COUNCIL MEMBER ELLIS SECONDED BY VICE CHAIR OF NVIDIA, UH, ALL IN FAVOR, RAISE YOUR HANDS.

AND THAT LOOKS UNANIMOUS HERE ON THE DIOCESE AND VIRTUALLY

[2. Briefing on regulations for accessory apartments, houses, and dwellings.]

TODAY'S MEETING, UH, IS SHORT AND THAT WE JUST HAVE ONE BRIEFING ITEM, BUT IT'S AN IMPORTANT ITEM, UH, AS IT RELATES TO ACCESSORY APARTMENTS AND DWELLINGS, WE ALL KNOW AND TALK ABOUT ALL OVER THE CITY AND IN THIS COMMITTEE, ESPECIALLY JUST HOW EXPENSIVE OUR CITY HAS GOTTEN, ESPECIALLY FOR HOUSING.

UH, WE'VE SEEN THE MEDIAN SALES PRICE FOR A HOME OVER DOUBLE IN THE LAST 10 YEARS BEFORE THE PANDEMIC, THE MEDIAN SALES PRICE WAS ABOUT $400,000 ALREADY, WAY TOO HIGH.

BUT, UH, AS OF RECENTLY THAT MEDIAN SALES PRICE IS NOW APPROACHING $550,000, UM, WHICH IS JUST, UH, JUST FAR TOO EXPENSIVE FOR MOST FAMILIES TO AFFORD.

IT MAKES IT HARD FOR PEOPLE TO STAY IN THE CITY AND MAKES IT NEARLY IMPOSSIBLE FOR AN EVERYDAY FAMILY TO OWN A HOME.

AND SO, UM, WE KNOW THAT MORE OPTIONS AND MORE ACCESS TO ACCESSORY, DWELLINGS AND SMALLER DWELLING UNITS CAN KEEP FAMILIES TOGETHER, CREATE MULTI-GENERATIONAL FAMILY, MULTI-GENERATIONAL HOUSING, UH, AND CAN, AND CAN MAKE US A MORE AFFORDABLE CITY.

SO I APPRECIATE THAT.

WE'RE ALL COMING TOGETHER TO DISCUSS THIS.

I APPRECIATE THE RESOLUTIONS THAT HAVE BEEN PUT FORWARD BY MULTIPLE MEMBERS HERE MOST RECENTLY, A RESOLUTION BY COUNCIL MEMBER TOVO, AND I'M GLAD THAT YOU'RE ABLE TO JOIN US COUNCIL MEMBER, UH, ALONG WITH, UH, I THINK EVERYBODY HERE HAS WORKED HARD ON THIS ISSUE.

SO WE'RE GOING TO HAVE THE STAFF PROVIDE A PRESENTATION ABOUT THE STATUS OF SOME OF THE, OF THE REGULATORY ENVIRONMENT ON ACCESSORY DWELLINGS.

I WANT US TO BE ABLE TO HAVE THAT STOCK PRESENTATION, UM, SORT OF IN WHOLE AND FULL, UM, BEFORE QUESTIONS.

WE ALSO DON'T HAVE A VIRTUAL TESTIMONY OPTION, SO SET UP YET IN OUR COMMITTEES.

UM, AND WE HAD REQUESTS FROM A COUPLE OF FOLKS THAT ACTUALLY PROVIDE THESE DWELLING UNITS IN OUR COMMUNITY TO SPEAK.

SO I'VE CREATED THE OPTION FOR BOTH OF THEM TO CHIME IN BRIEFLY ONE NONPROFIT AND ONE AFFORDED MORE AFFORDABLE PREFABRICATED, UH, PROVIDER IN OUR COMMUNITY.

SO WE'LL HAVE THEM BRIEFLY TALK AND THEN WE CAN ASK QUESTIONS OF THEM, UH, AND THEN HAVE, AND THEN HAVE THE STAFF, UM, DO Y'ALL HEAR THAT BEEPING SOUND? I'M GONNA JUST SEE IF THAT'S COMING FROM MY MICROPHONE.

HOLD ON.

OH, NO, IT'S GONE.

UM, I HEAR IT AGAIN.

HOLD TIGHT.

I'M GOING TO MOVE TO ANOTHER MICROPHONE AND SEE IF THAT MIGHT BE THE ISSUE.

I'M HEARING SOME STATIC COMING BACK TO ME AND THEN EVERY TIME I BRING IT UP, IT GOES AWAY.

BUT NOW IT'S GONE CHAIR.

YES.

COUNCIL MEMBER, IF I COULD, WHILE YOU'RE RESOLVING YOUR MICROPHONE.

UM, THANKS FOR ALLOWING ME TO JOIN YOU ALL.

WHEN I SAW YOU WERE TALKING ABOUT EDU'S.

I WANTED TO, TO JOIN, UM, COUNCIL MEMBER KESSLER MENTIONED THE RESOLUTION THAT I BROUGHT IN APRIL, WHICH SEVERAL OF YOU WERE CO-SPONSORS ON.

AND I DID JUST QUICKLY, MY STAFF AND I HAVE BEEN DRAFTING A RESOLUTION FOLLOWING UP ON SOME OF THE MEMO SUGGESTIONS THAT OUR STAFF BROUGHT FORWARD IN AUGUST.

AND SO I, WHEN I SAW THAT YOU ALL WERE HAVING A MEETING TODAY, I QUICKLY POSTED ON THE MESSAGE BOARD, SOME OF THE AREAS THAT OUR RESOLUTION WILL ADDRESS.

AND SO THAT IS ON, ON THE MESSAGE BOARD OR YOUR INFORMATION, UM, INCLUDED WITHIN THAT RESOLUTION WILL BE NEXT STEPS FOR THE PRE-APPROVED PLANS, WHICH WE MIGHT HEAR MORE ABOUT TODAY, UM, USING OUR CHAPTER THREE 80 PROGRAM TO DO FINANCIAL INCENTIVES AND, UM, PROBABLY A COUPLE OTHERS.

THANK YOU, COUNCIL MEMBER.

AND I THINK ALL OF THAT WILL BE RELEVANT FOR THE CONVERSATION TODAY.

SO I'M, I'M REALLY GLAD THAT YOU WERE ABLE TO MAKE IT, UM, AND TO BE CLEAR AS THE STAFF MAKES THE PRESENTATION ON, ON THE REGULATORY ENVIRONMENT, AS IT RELATES TO THIS, UM, YOU KNOW WHAT I THINK WHAT WE'RE REALLY GOING TO BE LOOKING FOR ARE, UH, CONSENSUS PLACES WHERE, WHERE WE CAN MAKE PROGRESS ON, ON 80 USE ACROSS THE BOARD, AS WE LOOK FOR WHAT THOSE, UH, SMALL CHANGES OR SMALL PROGRAMS

[00:05:01]

CAN, UH, OR THOSE SMALL CHANGES OR SMALL PROGRAMS CAN EXIST, OR THAT CAN PROVIDE BIG WINS FOR THE COMMUNITY.

SO I'LL HAND IT ON OVER TO THE STAFF FOR YOU ALL TO MAKE YOUR PRESENTATION ALL THE WAY THROUGH.

WE'LL TAKE THE TWO SPEAKERS AND THEN GO INTO QUESTIONS.

GOOD AFTERNOON.

MEMBERS OF THE COMMITTEE.

UM, I'M BRENT LLOYD, UM, DSD DEVELOPMENT OFFICER, AND ALSO ONE OF THE MEMBERS OF THE LDC REVISION TEAM.

AND ALSO JOINING US TODAY ARE, UM, MEMBERS OF THE LDC REVISION TEAM FROM HOUSING AND PLANNING, AS WELL AS DSD WHO ALSO HAVE BACKGROUND ON THESE REGULATIONS AS WELL AS THE 2020 COUNCIL RESOLUTION, UM, THAT COUNCIL MEMBER TOVO, UH, REFERENCED.

UM, AND WE ALSO HAVE, UM, SUSAN BARR WHO'S DSDS LEAD ZONING REVIEWER FOR RESIDENTIAL.

SO WE'RE HERE TODAY TO, I CAN GET THIS TO WORK EXCUSE ME, TECHNICAL DIFFICULTIES.

YEP.

SO WE'RE HERE TODAY MAINLY TO JUST PROVIDE AN OVERVIEW OF HOW CURRENT CODE TREATS, UH, VARIOUS TYPES OF ACCESSORY RESIDENTIAL STRUCTURES.

UM, AND WE HAVE, AS I MENTIONED, LDC TEAM MEMBERS PRESENT.

SO WE CAN SPEAK TO THAT AS A POINT OF REFERENCE, AS WELL AS TO WHAT THE REGULATIONS WERE THAT WERE PROPOSED DURING THAT PROCESS.

SO JUST TO KIND OF SET THE STAGE, UM, CURRENT TITLE 25 PROVIDES FOR SEVERAL TYPES OF ACCESSORY, RESIDENTIAL STRUCTURES TO FAM, AND WE'RE GOING TO TALK IN DETAIL ABOUT EACH CATEGORY.

UM, THE FIRST, I THINK IS THE ONE THAT'S USED THE MOST, AND IT'S THE ONE THAT PEOPLE REFER TO AS 80 YEARS, WHICH IS REALLY THE TWO FAMILY RESIDENTIAL USE.

UM, AS WE'LL TALK ABOUT IN A SECOND COUNCIL SUBSTANTIALLY AMENDED THOSE PROVISIONS IN 2015 AND 2016.

UH, ADDITIONALLY WE HAVE SECONDARY APARTMENTS WHICH ARE INFILL SPECIAL USE THAT ARE ALLOWED THROUGH THE NEIGHBORHOOD PLANNING PROCESS.

AND THEN WE HAVE GUEST HOUSES AND ONSITE EMPLOYEE HOUSING, WHICH ARE ALLOWED AS PART OF THE GENERAL ACCESSORY USE RESIDENTIAL STANDARDS.

AND FINALLY, WE HAVE ACCESSORY APARTMENTS AS WELL THAT ARE ALSO, UH, FOLDED INTO THE GENERAL ACCESSORY RESIDENTIAL USE PROVISIONS.

WE'RE GOING TO TALK ABOUT, AGAIN, AS I MENTIONED, UH, JUST THE HIGH POINTS OF THE LDC REVISION IT, HOW IT TREATED ACCESSORY RESIDENTIAL STRUCTURES, AND GIVE AN OVERVIEW AS WELL OF THE TOOTH, THE 20, 20, 80 RESOLUTION.

AND STAFF'S RESPONSE TO THAT.

THANK YOU.

UM, SO TO START OUT, UM, MOST ACCESSORY JUST KIND OF A BROAD OVERVIEW.

MOST ACCESSORY RESIDENTIAL STRUCTURES ARE PERMITTED AS TWO FAMILY RESIDENTIAL USES, AND THOSE ARE THE STRUCTURES THAT ARE MOST COMMONLY REFERRED TO AS 80 USE OR ACCESSORY DWELLING UNITS UNDER THE REGULATIONS THAT WERE ADOPTED IN 2015 AND THE LAND DEVELOPMENT ALSO LAND DEVELOPMENT CODE ALSO PROVIDES FOR ACCESSORY APARTMENTS, GUEST HOUSES AND ONSITE EMPLOYEE HOUSING, WHICH HAVE BEEN ALLOWED SINCE 1984 UNDER REGULATIONS THAT ARE SUBSTANTIALLY SIMILAR TO TODAY'S CODE WITH, WITH A FEW DIFFERENCES.

UM, SECONDARY APARTMENTS WERE ADDED AS A NEIGHBORHOOD PLANNING TOOL IN 2000.

SO TO JUST KIND OF WALK THROUGH WHAT THE BASIC

[00:10:01]

DEVELOPMENT STANDARDS ARE.

AND I THINK A LOT OF YOU ARE FAMILIAR WITH MOST OF THESE, UM, ESPECIALLY FOR 80 YEARS OR TWO FAMILY.

UM, THE TWO FAMILY RESIDENTIAL USES PERMITTED IN SF THREE.

UM, IN ALL OF THE MULTIFAMILY ZONES AS WELL AS CBD, UM, CENTRAL BUSINESS DISTRICT IN DOWNTOWN MIXED USE OR DMU ZONES AND THE LOT SIZE UNTIL 2015, UH, THE MINIMUM LOT SIZE FOR A TWO FAMILY RESIDENTIAL USE WAS 7,000 AND IN 2015, THAT WAS LOWERED TO 57 50.

UM, THE UNIT SIZE FOR, UH, THE, THIS TYPE OF ADU IS THE SMALLER OF 1100 SQUARE FEET OR 0.15 FLORIDA AREA RATIO.

AND WITH RESPECT TO FAR OR FLORIDA AREA RATIO, IT'S IMPORTANT TO KEEP IN MIND AS WELL THAT THE SUBCHAPTER F UM, SOME SOMETIMES REFERRED TO AS MCMANSION FAR LIMIT OF 0.4 ALSO APPLIES ACROSS THE ENTIRE SITE.

IN THIS PARTICULAR 0.1, FIVE FAR LIMIT IS SPECIFIC TO INDIVIDUAL UNITS.

ADDITIONALLY, THE CODE REGULATES, UM, THE SECOND STORY SIZE AND LIMITS THAT TO 550 SQUARE FEET PARKING REQUIREMENTS FOR THE PRINCIPAL UNIT ARE TWO SPACES.

AND FOR THE SECONDARY UNIT, IT'S ONE SPACE.

UM, IF IT'S MORE THAN A QUARTER MILE FROM AN ACTIVITY CORRIDOR, OTHERWISE NO SPACES ARE REQUIRED.

AND THAT'S ESTABLISHED IN APPENDIX A OF 25 6, WHICH IS THE MINIMUM PARKING STANDARDS, SECONDARY APARTMENTS.

UM, THESE WERE, THIS IS A NEIGHBORHOOD PLAN TOOLS.

SO IT'S ONLY ALLOWED, UM, IF A NEIGHBORHOOD PLAN HAS OPTED INTO IT, AND THESE ARE PERMITTED IN AND THE M USE DISTRICTS AND THE DEVELOPMENT STANDARDS ARE IDENTICAL TO THE TWO FAMILY RESIDENTIAL USE STANDARDS.

AND IT ESSENTIALLY PROVIDES IN PRACTICAL TERMS, A WAY FOR NEIGHBORHOODS, UM, TO OPT INTO THE, THE TWO FAMILY RESIDENTIAL USE IN ZONING DISTRICTS THAT OTHERWISE WOULDN'T PROVIDE FOR IT.

UM, AND IT APPEARS THAT I THINK I WROTE THIS DOWN, I THINK, UM, 21 OUT OF 60 NEIGHBORHOOD PLANNING AREAS HAVE OPTED INTO SECONDARY APARTMENTS.

SO GUEST HOUSES ARE A ACCESSORY RESIDENTIAL USE THAT'S ESTABLISHED JUST IN THE GENERAL ACCESSORY USE PROVISIONS OF THE CODE.

AN ACCESSORY USE IS IN ESSENCE, A USE THAT IS CUSTOMARY AND INCIDENTAL TO A PRINCIPAL USE.

AND, UH, OUR CODE PROVIDES FOR, HAS A GENERAL PROVISIONS RELATED TO ACCESSORY USES.

AND THOSE PROVISIONS INCLUDE DETAILED REQUIREMENTS FOR PARTICULAR KINDS OF RESIDENTIAL ACCESSORY USES, AND GUEST HOUSES ARE SPECIFICALLY AUTHORIZED, UM, ON LOTS THAT ARE 10,000 SQUARE FEET OR LARGER.

UM, AND THE CODE IN TENS, THESE TO BE USED FOR NON-PAYING GUESTS ONLY.

UM, THERE ARE NO SPECIFIC REQUIREMENTS CALLED OUT FOR UNIT SIZE OR PARKING REQUIREMENTS WITH RESPECT TO UNIT SIZE, THOUGH, AS I MENTIONED, UM, THE, WITHIN THE SUBCHAPTER F AREA, UH, THE MCMANSION BOUNDARIES, UM, THERE ARE LIMITS THAT WOULD APPLY WITH RESPECT TO FLORIDA AREA RATIO.

AND ADDITIONALLY, ALTHOUGH THERE ARE NO PARKING REQUIREMENTS, THERE IS WITHIN THE GENERAL ACCESSORY USE PROVISIONS, A TRIPLE LIMITATION ON THE NUMBER OF DAILY TRIPS THAT CAN BE GENERATED, UM, BY AN ACCESSORY USE.

AND I BELIEVE THAT LIMIT IS 10 TRIPS PER DAY.

AND THEN ANOTHER PROVISION, WHICH IS ALSO IN THE GENERAL ACCESSORY USE PROVISIONS FOR RESIDENTIAL IS ONSITE EMPLOYEE HOUSING.

UM, AND THIS IS LIMITED TO LOTS THAT ARE 15,000 SQUARE FEET OR MORE.

AND AS WITH GUEST HOUSES, THERE'S NO SPECIFIC UNIT SIZE, BUT SUB CHAPTER AFTER MCMANSION WOULD APPLY WITHIN THOSE BOUNDARIES.

AND THIS IS INTENDED FOR RESIDENTS EMPLOYED ONSITE, ACCESSORY APARTMENTS ARE THE LAST OF THE DWELLING UNIT TYPES THAT ARE AUTHORIZED AS PART OF THE ACCESSORY RESIDENTIAL PROVISIONS.

UM, AND THEY ARE NOT SUBJECT TO A PARTICULAR LOT SIZE, BUT IN GENERAL, THE, THE LOT SIZE THAT APPLIES FOR THE ZONING DISTRICT WOULD BE APPLICABLE.

UH, THERE'S NO, AGAIN, NO UNIT SIZE LIMITATION.

UM, BUT OTHER STANDARDS DEVELOPMENT STANDARDS WOULD APPLY ONE ON-SITE SPACES REQUIRED.

AND ADDITIONALLY, ACCESSORY APARTMENTS MUST BE CONTAINED WITHIN A PRINCIPAL STRUCTURE, NO GARAGE CONVERSIONS OR STREET FACING ENTRANCES ARE PERMITTED, AND THESE ARE INTENDED

[00:15:01]

FOR RESIDENTS OVER 60 OR WITH DISABILITIES.

SO WE WON'T DWELL ON THIS, BUT IF AT ANY POINT DURING A COUNCIL MEMBERS QUESTIONING, YOU'D LIKE TO SEE A COMPARISON, WE'VE PREPARED A COMPARISON TABLE THAT WALKS THROUGH THE DIFFERENT REQUIREMENTS AND PUTS THEM ALL ON ONE SLIDE, UM, JUST AT A HIGH LEVEL, UM, TO TALK ABOUT THE LDC REVISION AND THE REQUIREMENTS AND CHANGES THAT IT MADE WITH RESPECT TO ADU.

SO UNDER THE LDC REVISION, UM, 80 YEARS WERE PERMITTED IN EVERY RESIDENTIAL HOUSE SCALES ZONE, UH, AND THEY WERE, IT'S A CONSOLIDATED SPECIALIZED ACCESSORY AND SECONDARY APARTMENT USES, UM, WERE CONSOLIDATED FROM CURRENT CODE INTO A SINGLE ADU USE CATEGORY.

SO RATHER THAN HAVING SORT OF A PATCHWORK OF CODE PROVISIONS THAT ALL SPEAK TO DIFFERENT VARIATIONS OF AN ACCESSORY RESIDENTIAL UNIT, WE AS PART OF THE LDC REVISION AND CONSISTENT WITH ITS GOAL OF SIMPLIFYING, THERE'S A GENERAL CONSOLIDATED PROVISION THAT, UM, DEALS WITH 80 YEARS IN ONE PLACE.

UM, THE REGULATIONS ARE ALSO WERE ALSO STREAMLINED AND SO NO ADDITIONAL PARKING WAS REQUIRED.

UM, THEY WERE ALLOWED ANYWHERE ON THE PROPERTY, UM, SUBJECT TO SETBACKS AND OTHER SITE DEVELOPMENT STANDARDS, AND THEY WERE ALLOWED TO BE EXTERNAL, DETACHED, UM, EXTERNAL ATTACHED OR INTERNAL, UM, I'M SORRY, EXTERNAL DETACHED, UM, EXTERNAL ATTACHED OR INTERNAL, AND THE MAXIMUM SIZE WAS, UH, 1100 SQUARE FEET.

SO IN 2020 COUNCIL PASSED A RESOLUTION THAT, UM, DIRECTED STAFF TO PRO TO PROVIDE A RECOMMENDATION REALLY FOCUSED ON PROGRAMMATIC ISSUES AND IDENTIFYING BARRIERS TO ENTRY FOR 80 USE, AND REALLY JUST DELVING INTO THE THINGS THAT THE CITY COULD POTENTIALLY DO, UM, TO FACILITATE ADU, UM, CONSTRUCTION, YOU KNOW, INCLUDING POTENTIALLY REGULATORY ISSUES, BUT ALSO MORE BROADLY, UH, PROGRAMMATIC MEASURES AS WELL.

SO STAFF ISSUED A REPORT THAT RESPONDS TO THE COUNCIL RESOLUTION, UM, AND SOME OF THE SPECIFIC MEASURES AND FINDINGS IN THAT REPORT WERE THAT HOMEOWNERS MOST AT RISK OF DISPLACEMENT PREFERRED ALTERNATIVE STRATEGIES OTHER THAN 80 YEARS TO REMAIN IN PLACE.

ADDITIONALLY, EVEN WITH STREAMLINED PERMITTING FINANCING OBSTACLES CAN MAKE ADU CONSTRUCTION DIFFICULT FOR MANY LOW AND MODERATE INCOME HOMEOWNERS AND REMOVING BARRIERS TO INTERNAL AND ATTACHED 80 USE WOULD REDUCE CONSTRUCTION COSTS.

SO THERE WERE, I THINK, A OF HELPFUL MEASURES AND WE HAVE STAFF HERE WHO CAN ELABORATE ON SOME OF THOSE, UH, THAT WERE PROPOSED IN THIS MEMO, BUT THERE, BUT THERE ARE NO EASY FIXES TO THE DIFFICULTIES, UM, THAT ARE PRESENTED BY TRYING TO CONSTRUCT AN ADU.

SO THAT IS, THOSE ARE THE POINTS WE WANTED TO COVER.

I HOPE THAT WAS A HELPFUL RE-INTRODUCTION TO THIS TOPIC AND I'M AVAILABLE FOR QUESTIONS.

AND SO OUR OTHER TEAM MEMBERS THAT ARE HERE TODAY AS WELL.

THANK YOU, MR. LLOYD.

UM, BECAUSE WE HAVE OUR TWO INVITED SPEAKERS ON, IF IT'S OKAY WITH THE COMMITTEE, I WOULD HAVE THEM BOTH PRESENT BRIEFLY.

WE CAN ASK QUESTIONS OF THEM, AND THEN WE COULD COME BACK TO MR. LLOYD IF THAT'S OKAY.

SO I WANT TO MAKE SURE WE'VE MOVED THEM OVER, BUT OUR FIRST, UH, THE PEOPLE THAT HAVE BEEN BROUGHT IN ARE, UH, UH, AND THOMAS MEDINA FROM THE ALI FLAT INITIATIVE, UH, AND THEN AFTER THEM, ERIC PRESTON FROM VILLA.

SO, UH, MARLIN AND THOMAS, WHY DON'T YOU GUYS GO FIRST, TELL US A LITTLE BIT ABOUT WHAT YOU'VE DONE, ANY THOUGHTS YOU HAVE ON THE, UH, ON THE PRESENTATION AND ANY WORDS OF WISDOM FOR US AS WE TRY TO WORK ON THIS ISSUE.

SURE.

UM, UH, SO THANK YOU FOR INVITING US, UM, TO TALK ABOUT THIS, UH, GOOD AFTERNOON.

UM, EVERYONE COUNCIL MEMBERS.

MY NAME IS AND I AM THE ACTING EXECUTIVE DIRECTOR AT COMMUNITY POWER WORKSHOP.

UH, WE ARE A LOCAL NONPROFIT WITH A MISSION TO CONNECT AND AMPLIFY THE VOICES OF SYSTEMICALLY UNDER INVESTED COMMUNITIES, UM, TO CREATE POWERFUL PLACES.

UM, AND OUR ORGANIZATION HAS BEEN OPERATING THE ALLEY FLAT INITIATIVE, UM, OVER THE LAST 15 YEARS.

UM, AND SO THIS, UH, INITIATIVE IS A COLLABORATION BETWEEN OUR ORGANIZATION AND UNIVERSITY OF TEXAS CENTER FOR SUSTAINABLE DEVELOPMENT AND THE GUADALUPE NEIGHBORHOOD DEVELOPMENT CORPORATION.

AND THROUGH THIS PROGRAM, WE HELP HOMEOWNERS NAVIGATE THE PROCESS OF BUILDING A SECOND HOME IN THEIR BACKYARD AND ADU, UH, THAT CAN PROVIDE AFFORDABLE RENTAL HOUSING IN THEIR NEIGHBORHOOD AND BECOME A SOURCE OF INCOME FOR THE HOME OWNER.

UM, OUR ORGANIZATION HAS HISTORICALLY PROVIDED ARCHITECTURAL SERVICES

[00:20:01]

AND HELPED HOMEOWNERS ACCESS, AFFORDABLE HOUSING INCENTIVES TO MAKE DEVELOPMENT LIST COSTLY.

UM, AFTER A UNIT IS FILLED THROUGH OUR PROGRAM, IT HAS AT LEAST FIVE YEARS OF AFFORDABLE RENT THROUGH AFFORDABLE HOUSING DEVELOPMENT INCENTIVES.

THAT'S PROVIDED THROUGH THE CITY OF BOSTON KNOWN AS SMART HOUSING.

UM, SO WE HAVE SEEN FIRSTHAND THAT ADU DEVELOPMENT ENABLES HOMEOWNERS TO BUILD WEALTH AND INCREASE THEIR HOUSEHOLDS STABILITY WHILE ALSO PROVIDING NEW AFFORDABLE FAMILY FRIENDLY RENTAL HOUSING THROUGHOUT THE CITY.

UM, TO DATE, WE HAVE BUILT 18 ALLIE FLATS.

UM, BUT WHAT THIS NUMBER DOES NOT REFLECT IS THE AMOUNT OF INTERESTED HOMEOWNERS THAT WE HAVE TALKED TO AND DISCUSS THE POTENTIAL OF BUILDING AN ACCESSORY DWELLING IN THEIR PROPERTY THAT ENDED UP NOT PURSUING THIS OPPORTUNITY BECAUSE OF CURRENT BARRIERS.

UM, SO I WANT TO BRIEFLY SPEAK TO THREE MAIN POINTS BASED ON OUR EXPERIENCE.

UM, SO WE BELIEVE THAT THERE NEEDS TO BE MORE FLEXIBILITY AND OPTIONS TO BUILD 80 USE OR SECONDARY APARTMENTS THROUGHOUT THE CITY.

UH, ESPECIALLY SINCE HOUSING COSTS ARE INCREASING EVERYWHERE.

IT'S NOT JUST THE CORE.

UM, SO THIS CAN MEAN ALLOWING IT TO USE, TO BE BUILT BY RIGHT, UM, IN ANY LOT, UH, THAT QUALIFIES FOR IT, ESPECIALLY IN TERMS OF THE SIZE.

UM, SECOND HAVING MORE REGULATORY FLEXIBILITY COULD MEAN THAT LOWER INCOME FAMILIES HAVE MORE OPTIONS FOR BUILDING AN ADU, UH, DEPENDING ON THEIR NEEDS AND FINANCING ABILITIES.

AND LASTLY, UM, AN ATTACHED OR INTERNAL ADU THAT WE JUST HEARD, UM, A DESCRIPTION ABOUT.

UM, IT'S ALSO A GREAT OPTION FOR EXISTING HOUSEHOLDS, PARTICULARLY THOSE WHO ARE LOWER AND MODERATE INCOME FOR THE REASONS THAT WERE EXPLAINED.

UM, IT SEEMS TO BE MORE OF A COST-EFFECTIVE WAY OF DEVELOPING.

UM, SO I WILL NOW LET, UH, THOMAS MEDINA, WHO IS OUR DESIGN ASSOCIATE AND MANAGER OF THE ALT-RIGHT INITIATIVE, UH, GIVE A FEW EXAMPLES, UM, KIND OF ON THE GROUND OF WHAT HE'S HEARD HE HAS HEARD FROM, UM, HOMEOWNERS SPECIFICALLY.

YES, THOMAS SPEAKING, DURING MY TIME WITH ANY PART WORKSHOP OPERATING THE ALLIE FLAT INITIATIVE FOR THE PAST TWO YEARS, I HAVE A CALM THROUGH THE PROCESS OF DEVELOPING AN ATU WITH THE CITY, AND I'VE SPOKEN TO MANY HOMEOWNERS INTERESTED IN BUILDING ADU.

SO THESE ARE A FEW EXAMPLES OF THE WAYS IN WHICH THE DEVELOPMENT PROCESS AND REGULATIONS HAVE BEEN A BARRIER FOR SOME FOLKS.

SO FOR ONE, WE HAVE SPOKEN WITH FAMILIES THAT LIVE ON SF TWO LOTS, SPECIFICALLY THAT ARE VERY INTERESTED IN BUILDING AN ADU FOR THEIR FAMILY MEMBERS, BUT THEY CAN'T BECAUSE THEIR NEIGHBORHOOD HAS NOT ADOPTED THE IN FAULT TOOL ITSELF.

UM, SECONDLY, WE HAVE ALSO SPOKEN WITH HOUSEHOLDS INTERESTED IN BUILDING INTERNAL OR ATTACHED ADS, UM, FOR A FRIEND OR FAMILY MEMBER, BUT THEY CAN'T BECAUSE THEY WON'T QUALIFY TO LIVE THERE.

AND BASED ON CURRENT REGULATIONS FOR ACCESSORY APARTMENTS, UM, THERE'S ALSO NO, UH, FOLLOW-UP PROCESS UNDER THAT.

UM, UNDER THE ACCESSORY DEPARTMENT REGULATIONS, UM, ONE HOMEOWNER WHEN HOMEOWNER EXPLAINED THAT THEY WENT THROUGH THE PROCESS OF APPLYING FOR AN ADU UNDER THIS, THIS AGE QUALIFICATION, UM, WITH THEIR ELDERLY MOTHER IN MIND.

UM, BUT EVENTUALLY, UH, THEY RENTED THE UNIT OUT TO, TO A FRIEND INSTEAD.

SO THAT IS ONE EXAMPLE IN WHICH THE, THEY WENT TO THIS PROCESS, BUT THERE'S LIKE, THERE'S NOT, UM, UH, KIND OF A FOLLOW THROUGH PROCESS ON MAKING SURE THAT THEY'RE THE PERSON THAT'S QUALIFIED TO LIVE IN THAT UNIT IS ACTUALLY LIVING IN THE UNIT.

UM, THIRDLY, WE'VE ALSO TALKED TO MODERATE INCOME HOUSEHOLDS WHO WANTS TO DO AN INTERNAL ADU THROUGH A GARAGE CONVERSION SPECIFICALLY, BUT THEY CAN'T BECAUSE OF THE CURRENT REGULATIONS.

UM, AND WE WANT TO NOTE HERE THAT THIS MIGHT BE ONE OF THE MORE COST-EFFECTIVE WAYS FOR DEVELOPING, UH, ANOTHER UNIT ON THE SAME PROPERTY.

UM, A GARAGE CONVERSION IS ONE HOUSING TYPE THING THAT COULD BE TAKEN ADVANTAGE OF BY HOMEOWNERS TO, TO REALLY, UM, INCREASE THEIR INCOME THROUGH RENT OR BUY HOUSING.

ANOTHER FAMILY MEMBER, UM, FOURTHLY THE EXISTING CONDITIONS ON THE PROPERTY MAY MAKE IT TOO DIFFICULT TO DESIGN AROUND.

AND THE DEVELOPMENT REGULATIONS MIGHT BE TOO INFLEXIBLE TO ALLOW ALTERNATIVE DESIGN SOLUTIONS.

UM, AND SO THIS CAN COME UP IN A VARIETY OF WAYS, INCLUDING, UM, SLOPE AND TREES THAT EXIST ON THE PROPERTY.

UM,

[00:25:03]

THE LAST BULLET POINT I HAVE, UH, THE DEVELOPMENT PROCESS ITSELF FROM PERMITTING TO CONSTRUCTION TO, UH, THE CERTIFICATION OF OCCUPANCY CAN BE UNPREDICTABLE.

AND TIME-CONSUMING FOR SOME FOLKS, MANY OF THE HOMEOWNERS THAT I'VE SPOKEN TO HAVE EXPRESSED THAT SIMPLY UNDERSTANDING WHAT CAN BE BUILT ON THEIR PROPERTY.

IT'S A CONFUSING PROCESS.

ONE HOMER, ONE HOMEOWNER EXPLAINED TO ME THAT, UH, A HOMEOWNER SHOULD BE ABLE TO FIGURE OUT WHAT THEY CAN BUILD.

THE SYSTEM AND RESOURCES ARE CURRENTLY AVAILABLE AS THEY ARE NOW IS NOT USER-FRIENDLY.

UM, AND THEN A FEW MONTHS AGO, ANOTHER HOMEOWNER CALLED AND EXPLAINED THAT THEY WENT TO THE CITY'S DEVELOPMENT SERVICES DEPARTMENT AND ASKED ABOUT THE PROCESS TO BUILDING AN ADU.

AND THEY WERE TOLD THAT THEY NEEDED FLOOR PLANS, AND THEN THEY CAME TO OUR ORGANIZATION AND ASKED TO PURCHASE FLOOR PLANS.

SO, UM, I THINK MORE COMMUNICATION ABOUT THE OVERALL DEVELOPMENT PROCESS IS NEEDED, UM, AND COULD BE PROVIDED BY THE CITY TO HOMEOWNERS.

THAT'S A LITTLE MORE HOLISTIC ABOUT THE PROCESS OF WHAT IT MEANS TO, TO GO TO AN ARCHITECT AND AN APP, UM, KIND OF CONTRACT SERVICES FOR PLANTS, AND THEN FIND A, A CONTRACTOR TO DO THE WORD AND WHAT THAT, WHAT THAT MIGHT INTEL AS A, AS A BIG PICTURE FOR BUILDING SOMETHING LIKE THIS.

SO IN CLOSING, UH, WE KNOW THAT WE'VE SEEN THESE BARRIERS THAT COME UP IN OTHER PARTS OF THE COUNTRY WHERE ADU IS, ARE SEEN AS A VALUABLE HOUSING TYPES.

SO WE'RE NOT ALONE IN THESE CHALLENGES, BUT, UH, WE STILL MUST DO SOMETHING TO OVERCOME, UH, THESE IN ORDER FOR 80 USED TO BE A BETTER BENEFIT FOR HOMEOWNERS WE BELIEVE.

UM, AND IT'S ALSO IMPORTANT TO POINT OUT THAT SOME, IF NOT ALL OF THESE BARRIERS, UH, THAT WE HAVE NOW IN PLACE RESTRICT THE USE AND BENEFITS OF AID USE TO MOSTLY HIGHER INCOME HOUSEHOLDS.

SO IF WE REALLY WANT TO MAKE ADU A MORE EQUITABLE OPTION THAT CAN TRULY BENEFIT THE COMMUNITY AT LARGE, UM, REGULATIONS NEED TO CHANGE, AND IT'S ALL ABOUT BEING ABLE TO PROVIDE OPTIONS FOR HOMEOWNERS.

UM, THANK YOU, MR. DORADO, UM, AND TO WRAP UP OUR PRESENTATIONS AND THEN WE'LL DEFINITELY HAVE QUESTIONS.

UH, WE HAVE MR. PRESTON HERE FROM FELLA HOMES AND WELCOMING, AND I'VE ASKED MR. PRESAD IF HE COULD FOCUS IN, UH, PARTICULARLY ON SORT OF WHAT THE COSTS ARE LOOKING LIKE OUT THERE AND WHAT IT WOULD TAKE TO, TO GET THIS MORE TO SCALE.

SO THANK YOU FOR JOINING US.

THANK YOU, COUNCIL MEMBERS FOR HAVING ME HONORED TO BE HERE.

I'M REPRESENTING VILLA HOMES.

WE ARE A TURNKEY PROVIDER OF ADU DEVELOPMENT FOR HOMEOWNERS.

UM, WE STARTED IN CALIFORNIA WITH THE GOAL OF DIRECTLY IMPACTING THE HOUSING CRISIS BY BUILDING MORE HOUSING, AND WE'VE EXPANDED TO AUSTIN OVER THE LAST SEVERAL MONTHS, VERY EXCITED TO BE THERE.

UH, WE REALLY JUST DO ONE THING AND WE TRY TO DO IT AS SIMPLY AND CONVENIENTLY AS POSSIBLE FOR CUSTOMERS AND THAT'S BUILD PRE PREFABRICATED DETACHED EDU'S AND TO DO SO IN A VERY SIMPLE, CONVENIENT, TURNKEY FASHION.

OUR MISSION IS REALLY TO HELP HOMEOWNERS BUILD A, TO USE, UH, IS SIMPLY AND CONVENIENTLY AS POSSIBLE WHILE ALSO MAKING IT ACCESSIBLE, APPROACHABLE, AND BY DRIVING THE COST DOWN AS LOW AS POSSIBLE FOR HOMEOWNERS TO BE ABLE TO BUILD ADS, I WANTED TO SORT OF MOSTLY JUST MAKE TWO POINTS.

UH, THE FIRST IS THAT WE SPOKE WITH 331, VERY INTERESTED AUSTIN HOMEOWNERS, JUST LAST MONTH, WHO WERE INTERESTED IN BUILDING AN ADU EITHER FOR RENTAL HOUSING OR BRINGING FAMILY CLOSER TO HOME MAKING A MULTI-GENDER JET MULTI-GENERATIONAL HOUSEHOLD.

UH, AND ABOUT 50% OF THE INTERESTED HOMEOWNERS THAT WE SPOKE WITH WERE EFFECTIVELY, IMMEDIATELY DISQUALIFIED FROM BEING ABLE TO BUILD BASED ON THEIR ZONING.

THEY WERE IN EITHER SF ONE OR SF TWO DIDN'T FEEL COMFORTABLE OR AS FAMILIAR WITH THE GUEST HOUSE PROVISIONS, UH, AND JUST SORT OF IMMEDIATELY, WE'RE JUST INTERESTED JUST BECAUSE OF THEIR BASE ZONE AND UNABLE TO BUILD AN ADU.

UM, THE SECOND POINT I WANTED TO MAKE IS THAT OVER THE LAST YEAR, LITERALLY 12 TO 18 MONTHS, THERE HAS BEEN A PRETTY SIGNIFICANT PROLIFERATION OF NEW FINANCING TYPES.

UH, BOTH WITH FOLKS LIKE FANNIE MAE IN THE CONVENTIONAL FINANCING ROUND, AS WELL AS ALTERNATIVE FINANCING TYPES LIKE HOME EQUITY COME INVESTMENT.

UH, AND WHEN THOSE ALTERNATIVE FINANCING TYPES ARE TAKING, UH, INTO COMBINATION WITH PREFABRICATED BUILT BUILDING TECHNOLOGIES, WHICH CAN REALLY HELP DRIVE THE COST OF ADU CONSTRUCTION DOWN SIGNIFICANTLY, UH, FOR DETACHED STRUCTURES, YOU REALLY DO START TO OPEN UP THE OPPORTUNITY FOR ADU CONSTRUCTION, TO MUCH MORE MODERATE AND LOWER INCOME HOMEOWNERS, WHICH IS A GREAT WAY TO BUILD HEALTH, UM, BUILD WEALTH AND ADD

[00:30:01]

MUCH NEEDED HOUSING TO THE COMMUNITY PRETTY MUCH, UM, ALL HAPPENED ON THOSE MANTRA POINTS ARE, THEY'RE VERY HAPPY TO TAKE QUESTIONS AS IT RELATES TO THE ECONOMICS OF YOU THEY'RE RENTING 80 UNITS OR CONSTRUCTION.

THANK YOU.

I THINK IT MIGHT BE ACTUALLY REALLY USEFUL IF YOU LAID OUT TO US AS YOU'VE SENT OVER TO ME, YOU KNOW, IF SOMEBODY HAS, AS SO MANY PEOPLE HAVE, YOU KNOW, BOUGHT THEIR HOUSE FOR $150,000 NOT LONG AGO, NOW IT'S WORTH $500,000.

UM, AND WHEN THAT PERSON COMES TO YOU, IF THEY ARE ACTUALLY ABLE TO DO THIS TUB, I THINK JUST LAYING OUT FOR US, THE ECONOMICS OF HOW COULD POTENTIALLY WORK I THINK IS, IS USEFUL.

IF YOU HAVE NUMBERS.

SURE.

HAPPY TO GIVE A COUPLE OF DIFFERENT SORT OF FINANCIAL POINTS.

THE FIRST IS COST OF CONSTRUCTION.

OBVIOUSLY THIS CAN VARY PRETTY DRAMATICALLY, DEPENDING ON THINGS LIKE YOUR SITE CONDITIONS, THE TYPE OF FOUNDATION THAT'S NEEDED, UH, THE UTILITIES NEEDED, OR WHAT'S REQUIRED BY THE CITY IN TERMS OF UTILITY CONNECTIONS.

UM, THE OTHER POINT WORTH MAKING IS THAT, UH, I ACTUALLY THOUGHT THOMAS HAD A GREAT POINT ABOUT GARAGE CONVERSIONS.

THOSE CAN BE A GREAT WAY TO DRIVE COST DOWN AS WELL.

IF THE HOMEOWNER IS ABLE TO REUSE LIKE A FOUNDATION OR WALLS.

UH, BUT WHAT WE FOCUS ON IS GROUND UP NEW CONSTRUCTION, NEW DEVELOPMENT, UH, FOR DETACHED 80 IS ONLY A, AND IF YOU'RE LOOKING INTO STICK, BUILDING A DETACHED ADU, NOT ONLY IS THE COST VERY OPAQUE AND UNCONTROLLABLE, AND IT CAN RUN AWAY FROM YOU HALFWAY THROUGH A CONSTRUCTION PROJECT.

UH, BUT IT TENDS TO BE MUCH HIGHER.

I DON'T KNOW ANYONE THAT WANTS TO BUILD A TOYOTA COROLLA IN THEIR DRIVEWAY WITH SPARE PARTS AND A TEAM OF PEOPLE OVER 18 MONTHS.

UM, IT JUST BECOMES A VERY INEFFICIENT AND NOT COST-EFFECTIVE PROCESS.

UH, SO IF PREFAB, WE CAN DO EVERYTHING OFFSITE AND KEEP EVERYTHING MUCH MORE PREDICTABLE AND CONTROLLABLE.

UH, LABOR COSTS TEND TO BE MUCH LOWER.

WE HAVE MACHINES HELPING WITH SOME OF THE WORK AND WE'RE ABLE TO BUY ALL OUR MATERIALS UP FRONT AND BOOK.

SO TO DO, UM, OUR STARTING PRICE, JUST AS ONE DATA POINT FOR A 450 SQUARE FOOT DETACHED STRUCTURE, THAT'S SORT OF ALL INCLUSIVE OF PERMANENT COSTS, UTILITY CONNECTIONS FOUNDATION, THE STRUCTURE ITSELF, APPLIANCES FINISHES FIXTURES WARRANTY, UH, THAT WOULD START AT ABOUT 159,000 ALL IN WHICH, UM, IF YOU COMPARE APPLES TO APPLES FOR A SIMILAR DETACHED STRUCTURE, STICK BILL AND INCLUDE EVERYTHING LIKE PERMITS AND APPLIANCES AND WARRANTY AND UTILITIES WOULD PROBABLY BE A GOOD 25 TO $75,000 MORE EXPENSIVE.

SO THAT'S AN EXAMPLE OF JUST AN OVERALL PRICE POINT FOR A COMPLETE BUDGET FOR A DETACHED IN TO YOU AT 159,000, UM, FINANCING FOR SOMEONE WHO'S LOOKING TO ADD, SAY 159,000 TO THEIR EXISTING MORTGAGE.

I JUST PLUGGED IT INTO A MORTGAGE CALCULATOR.

IF YOU'RE ADDING 159,000 TO YOUR EXISTING MORTGAGE BALANCE ON A 30 YEAR FIXED RATE AT SORT OF THREE AND A QUARTER INTEREST RATE IS ROUGHLY A $700 MONTHLY PAYMENT.

UH, SO FOR ONLY 700 ADDITIONAL DOLLARS PER MONTH, YOU COULD EASILY FIND A LOT OF VERY CASHFLOW POSITIVE.

80 IS IF YOU, IN AN AREA WHERE THE RENTAL INCOME THAT YOU'D BE ABLE TO ACCRUE FROM THE ADU WOULD EXCEED $700 FOR A ONE OR TWO BEDROOM, WHICH WOULD APPLY, UH, IN THIS DAY AND AGE IN MANY, MANY PARTS OF AUSTIN.

UH, I GUESS THE LAST POINT TO MAKE ON THE FINANCIAL SIDE IS THAT WHILE THERE HAS BEEN SORT OF A HUGE HOME APPRECIATION OVER THE LAST DECADE IN AUSTIN, UH, AS COUNCIL MEMBER CASAR POINTED OUT AT THE BEGINNING, THERE IS A SILVER LINING TO THAT WHEN YOU HAVE MASSIVE HOME APPRECIATION, WHAT IT MEANS IS THAT EXISTING HOMEOWNERS OF ANY INCOME LEVEL NOW HAVE A LOT MORE EQUITY IN THEIR HOMES.

AND ACTUALLY EVEN MORE SO THAN INCOME AVAILABLE EQUITY TO BORROW AGAINST HAS REALLY BEEN THE BIGGEST LIMITING FACTOR IN ADU FINANCE, UH, GETTING THOSE LOAN TO VALUE RATIOS, UH, UH, BY HAVING MORE AVAILABLE EQUITY, UM, THAT YOU CAN BORROW AGAINST IT IS PROBABLY THE SINGLE BIGGEST BARRIER.

SO WHEN YOU'VE HAD MASSIVE APPRECIATION, WHAT YOU'VE ACTUALLY DONE IS INCREASED YOUR AVAILABLE EQUITY TO EITHER BORROW AGAINST OR USE ALTERNATIVE HOME EQUITY, COME INVESTMENT FINANCING AGAINST, AND THAT IT CAN ACTUALLY OPEN UP ON ADU DEVELOPMENT TO MODERATE, TO LOWER INCOME PEOPLE THAT HAPPEN TO OWN PROPERTY.

THAT'S NOW APPRECIATED MUCH MORE SO THAN YOU WOULD ANTICIPATE.

THANK YOU FOR THAT, UH, MEMBERS OF THE COMMITTEE.

ARE THERE ANY QUESTIONS FOR, UH, MS. DORADO OR MR. MEDINA OR MR. PRESTON? UH, AND THEN AFTER THAT WE CAN GET BACK TO MR. LLOYD, UH, VICE-CHAIR ANTONIA, THEN COUNCIL MEMBER ELLIS, THEN COUNCIL MEMBER, KITCHEN COUNCIL MEMBER IDENTITY.

I THINK WE MIGHT

[00:35:01]

BE HAVING TROUBLE HEARING YOU.

SO I'M GONNA KICK IT OVER TO A COUNCIL MEMBER ELLISON.

OH, THERE YOU ARE.

YOU'RE GOOD.

GO FOR IT.

UH, YOU KNOW, AT SOMEONE WHO HAS GONE THROUGH THE PROCESS OF BUILDING THE ADU ON MY LAP, OR ONE OF THE FIRST IN MY, UH, MY DISTRICT HERE IN MY, MY NEIGHBORHOOD, OUR CONTACT TEAM WAS ONE OF THE FIRST THAT ADOPTED THE, UH, A ADU AND GOING THROUGH THE PROCESS.

MY, MY BIG CONCERN IS THAT PEOPLE THAT ALREADY OWN THEIR HOUSE HAS TO PAY ALL UPFRONT FEEDS TO CONNECT TO OFF TO UTILITY.

I, ONCE WE ADDED UP THE NUMBER, IT WAS GOING TO BE SOMEWHERE 12 TO 25 TO $28,000 JUST TO ATTACH YOUR UTILITY TO THE AUSTIN, UM, SERVICE.

SO THAT'S, THAT'S A BIG CONCERN.

I, I FOUGHT THAT AND WE LIKE, THEY, WE HAD PEOPLE THAT WERE ON THE STAFF IN THE CITY THAT WORKED WITH US AND WERE ALLOWED TO JUST USE THE EXISTED METERS THAT WE HAVE, YOU KNOW, AND THAT'S REALLY CONCERNING FOR ME BECAUSE MY GAS METER DIDN'T COST A DIME.

YOU KNOW, I GOT A BRAND NEW GAS METER, THEY JUST WANTED MY SERVICE.

SO IT, IT, THEY HADN'T PAID ANYTHING, BUT THIS WAS JUST FOR, UH, WATER AND ELECTRIC, UH, SERVICES.

AND IT JUST OUTRAGEOUS.

AND I'M A WONDER, HAVE YOU HAD ANY EXPERIENCE GOING THROUGH THE PERMITTING PROCESS HERE RECENTLY? THIS WAS JUST, THIS WAS ALMOST IN 2005 WHEN I WENT DIRECTLY.

SO IT'S BEEN AWHILE.

I'M JUST WONDERING IF ANY OF Y'ALL THAT HAVE GONE THROUGH THAT PROCESS OR HAVE TALKED TO PEOPLE THAT HAVE GONE THROUGH THAT PROCESS.

HOW EXPENSIVE IS IT WITH ANYBODY CAN TELL ME OUT THERE THAT KNOWS IF IT'S STILL OPEN PRIOR OR DID IT GO DOWN OR HER, THAT WAS THE BIG CONCERN OF MIND.

I'M HAPPY TO CHIME IN BRIEFLY, ALTHOUGH I THINK THE OTHER GUESTS MAY HAVE, UM, BETTER EMPIRICAL DATA THAN I DO.

WE'RE, WE'RE PRETTY NEW TO AUSTIN, SO WE HAVEN'T COMPLETED ANY PROJECTS OR BEEN ALL THE WAY THROUGH A PERMITTING PROCESS YET.

UH, BUT I DID SPEND SEVERAL WEEKS FOR THE CAMPED OUT AT THE DEVELOPMENT SERVICES OFFICE.

AND ONE OF THE THINGS THAT WAS VERY SURPRISING TO ME WAS THAT AUSTIN WATER, IF YOU BUILD AN ADU WILL REQUIRE A NEW SERVICE TO THE STREET, AND THAT IS VERY EXPENSIVE AND THESE UTILITY COSTS WILL DEFINITELY ADD UP, UM, CERTAINLY INTO THE TENS OF THOUSANDS OF DOLLARS RANCH, WHICH IS A PRETTY BIG UNEXPECTED INCREASE TO THE BUDGET FOR A LOT OF HOMEOWNERS.

UM, AND WHAT I WOULD SAY, JUST COMPARING TO CALIFORNIA, WHERE WE HAVE COMPLETED, YOU KNOW, 50 PLUS PER PROJECTS IS THAT TO BE REQUIRED AT A NEW WATER SERVICE TO THE STREET AND OFTENTIMES UPDATE AND UPGRADE THE CITY'S INFRASTRUCTURE, UH, IS VERY UNNECESSARY TO ADD AN ADU WHEN YOU COULD SIMPLY JUST CONNECT TO THE PRIMARY HOMES, WATER, UH, AND DO SO MUCH MORE COST-EFFECTIVELY THANK YOU.

YEAH.

I, I STILL THINK IT'S PRETTY EXPENSIVE, BUT I DON'T KNOW.

CAUSE I IT'S BEEN A WHILE SINCE I'VE TALKED TO SOMEONE THAT'S GONE THROUGH THE PROCESS, BUT IT'LL BE VERY INTERESTING TO HEAR FROM MY STAFF TO SEE IF, IF THE COSTS HAVE GONE DOWN.

AND I KNOW THAT WE WERE VERY CONCERNED WHEN WE WERE DISCUSSING ADU USE EARLIER DURING MY TERMS THAT YEAH, THE CONCEPT ITSELF OF ADDING THAT MUCH TO BUILDING A ADU, BUT VERY RESTRICTIVE SUSAN, ESPECIALLY I LOW-INCOME PEOPLE BECAUSE THEY JUST COULD NOT AFFORD TO COME UP FOR THAT ADDED VALUE, THAT ADDED MONEY THAT HE HAD TO COME UP TO TO GET THE PERMIT AND JUST THE PERMITTING PART OF IT.

AND JUST TO ADD TO THAT, THE HOMEOWNERS, HOMEOWNERS, I JUST SPEAK TO TED MENTIONED IT, UH, AT, AT A D UTILITIES, UM, AND UTILITY COSTS.

THEY, UM, THAT HAS BEEN A BARRIER FOR THEM AS THEY MOVE FORWARD IN AND CONSIDER DEVELOPING ANOTHER UNIT.

UM, AND SIMPLE COMMUNICATION MIGHT ALSO HELP IN TERMS OF UNDERSTANDING, HELPING HOMEOWNERS UNDERSTAND THEIR OPTIONS IN THAT, IN SOME CASES I BELIEVE, UH, IT DEPENDS ON THE, THEIR, UM, EXISTING UTILITY HOOKUP, IF IT CAN HAVE THE CAPACITY TO, TO HOLD ANOTHER UNIT AND THAT'S AN OPTION, BUT, UH, IN SOME CASES THAT'S, THAT'S NOT AN OPTION.

AND SO FOR THE HOMEOWNER TO KNOW THAT AHEAD OF TIME, IT'S, IT'S A GREAT, YEAH, I THINK WOULD ADD THAT THE MAJORITY OF FOLKS THAT WE'VE WORKED WITH, THE, IT, IT WORKS OUT SO THAT THE WATER, UH, THE SIZE OF,

[00:40:01]

OF, UH, OF THE WATER, UH, IT'S, IT'S, IT'S BIG ENOUGH THAT IT WOULD BE ABLE TO HOLD WHATEVER NEW BATHROOMS THEY'RE ADDING TO THE, TO THE NEW, UH, ADU.

SO THAT'S NOT, UH, IT DOESN'T INCREASE THE COST AS MUCH AS IT WOULD BE IF YOU NEED TO INCREASE THE TAP SIZE SO THAT IT CAN SERVE THE BACKUPS, WHICH I AGREE WITH YOU, IT IS ABOUT, YOU CAN ADD 20 TO $30,000, WHICH IS DEFINITELY A NO-GO FOR A LOT OF PEOPLE.

UM, BUT IF IT DOES ALLOW THE SIZE OF THE CURRENT, UH, STRUCTURE, UH, TO BE ABLE TO USE THAT AND THEN JUST EXTEND IT TO THE BACK HOUSE, THAT'S AN OPTION.

UM, IT IS, THAT'S MY UNDERSTANDING.

I LOVE TO HEAR FROM THE STAFF IF THAT HAS CHANGED.

OKAY.

SO IT HAS YOU HAVE EXPERIENCED WHERE YOU COULD HAVE USED YOUR, YOUR EXISTING UTILITY CAPACITY? YES.

OKAY.

WELL, THAT'S GOOD TO HEAR.

THANK YOU.

THANK YOU.

THANK YOU, CHAIR.

COSAR UM, THAT WAS A REALLY GOOD QUESTION.

COUNCIL MEMBER RENTERIA, CAUSE I WAS THINKING THE SAME THING.

YOU KNOW, WHAT, WHAT ABOUT THE UTILITIES AND WHAT DOES THAT MEAN IN THIS CONVERSATION? UH, IT REMINDS ME OF WHEN I RECENTLY GOT A TOUR OF THE COMMUNITY FIRST VILLAGE.

SO WHEN THE CITY MANAGER UNVEILED HIS BUDGET, UM, WE WERE FORTUNATE TO BE ABLE TO GO ON A TOUR OF THE COMMUNITY FIRST VILLAGE.

I BELIEVE ALL OF THAT IS OUTSIDE THE CITY LIMITS, UM, WHICH IS JUST BAFFLING TO ME THAT, UM, IN ORDER TO PROVIDE HOUSING FOR FOLKS WHO NEED IT, SOMETIMES PEOPLE HAVE TO TURN OUTSIDE THE CITY LIMITS TO MAKE THAT HAPPEN.

UM, BUT THIS, UH, CONVERSATION ABOUT THE PRE-FAB HOUSES IS REALLY INTERESTING TO ME BECAUSE MY LAST APARTMENT WAS 423 SQUARE FEET.

AND I DON'T SEE A LOT OF HOUSING STOCK LIKE THAT AS AN OPTION.

UM, IT WAS AFFORDABLE TO ME IN A TIME THAT, UM, YOU KNOW, WHAT I WANTED WHEN I WAS LOOKING AT WHERE TO MOVE, UM, A DECADE AGO AND, YOU KNOW, THE COST DID JUST KEEP GOING UP AND UP AND UP EACH YEAR.

AND SO EVEN WHEN YOU DO FIND HOUSING STOCK, THAT IS THAT SIZE AND STARTS OUT AFFORDABLE.

UM, IT'S NOT ALWAYS GOING TO STAY THAT WAY IF WE CAN'T FIGURE OUT WAYS TO ACCOMMODATE MORE CREATIVE TYPES OF HOUSING AND THINGS OF THAT NATURE.

UM, SO I JUST FOUND THAT TO BE VERY INTERESTING AS WE'RE TALKING ABOUT TRYING TO ACCOMMODATE THAT SIZE STRUCTURE AND MORE PLACES IN TOWN.

I THINK THAT'S A CONVERSATION THAT WE SHOULD CERTAINLY BE LOOKING AT AND REALLY APPRECIATIVE THAT Y'ALL ARE OUT THERE DOING WORK EXACTLY LIKE THIS TO TRY TO MAKE IT SIMPLER FOR FOLKS TO UNDERSTAND OUR CURRENT RULES AND TO TRY TO ASSIST THEM INTO PUTTING SOMETHING LIKE THIS IN PLACE.

SO THANKS FOR BEING HERE TODAY.

THANK YOU, COUNSELOR.

I'M MELISSA, AND I'M SURE THEY WERE CHARGING YOU MORE THAN 700 BUCKS A MONTH.

UH, AND SO THAT IS, UM, UH, SORRY, YOU CAN CONFIRM THAT.

UM, BUT, BUT IT'S JUST REALLY, UM, UH, IS REALLY GREAT INFORMATION TO SEE THAT YOU'RE ABLE TO DRIVE THOSE COSTS THAT LOW IF WE AREN'T ADDING TOO MANY NEW COSTS, UH, COUNCIL MEMBER KITCHEN.

UM, LET'S SEE.

I HAVE TWO QUESTIONS IN, UM, ONE IS ABOUT FINANCE AND I KNOW THAT THAT'S ONE OF THE AREAS THAT COUNCIL MEMBER TOBO WAS PAYING ATTENTION TO, UM, IN HER PREVIOUS RESOLUTION.

BUT MY QUESTION IS SPECIFIC TO, UM, THE ASSISTANCE THAT, UM, UH, THAT COMMUNITY POWERED WORKSHOP PROVIDES.

UM, AND I'M JUST WONDERING IF YOU, IF YOU ALL, I IMAGINE YOU DO, BUT JUST WANTED TO ASK IF YOU ALL PROVIDE ASSISTANCE FOR HOMEOWNERS IN, IN FINANCING, THE, UM, THE HOME EQUITY LOANS ARE NOT THE EASIEST TO MANEUVER, UM, IS EVERYBODY, YOU KNOW, I'M SURE, YOU KNOW, I'M NOT TELLING YOU ANYTHING YOU DON'T KNOW, BUT THEY CAN BE DIFFICULT THAT CAN ALSO TRIP PEOPLE UP, UM, BECAUSE IT'S ESSENTIALLY A MORTGAGE OR EVEN IF YOU GET A HILAR, WHICH IS A LINE OF CREDIT AND YOU STILL HAVE TO JUMP THROUGH A LOT OF HOOPS HOOPS IN SOME, WELL, I DON'T KNOW IF THOSE TAKE UPFRONT MONEY TO BE ABLE TO DO THEM.

I DON'T THINK SO, BUT ANYWAY, MY QUESTION TO YOU, MY FIRST QUESTION IS TO ASK YOU WHAT YOU ALL PROVIDE IN TERMS OF ASSISTANCE WITH FINANCING AND WHAT KIND OF DIFFICULTIES HAVE YOU SEEN PEOPLE, UM, ENCOUNTER, EVEN THOUGH THEY MAY HAVE EQUITY IN A HOME, WHAT, WHAT ARE YOU SEEING IN TERMS OF THE DIFFICULTY TO FINANCE CONSTRUCTION OF EITHER FREESTANDING ONE, WHICH DOESN'T, UH, YOU KNOW, THAT MAY NOT BE AS EXPENSIVE A PREFAB ONE IS ERIC'S TALKING ABOUT OR, OR NOT.

UM, SO COULD YOU SPEAK TO THAT? YEAH.

UM, SO WE ARE A, UM, PLANNERS OR ARCHITECTS.

WE DON'T OFFER FINANCING, UM, THAT IS NOT, IF YOU OFFER IT, I'M ASKING, DO YOU HELP THEM NAVIGATE IT? YEAH.

AND WE, WE, WE DON'T, WE DON'T WANT TO PROVIDE, UH, UH, WE CAN'T REALLY PROVIDE ADVICE ON, UM, YOU KNOW, LIKE SPECIFICALLY WHAT TYPE OF MORTGAGE THEY CAN, UH, ACCESS OR ANYTHING LIKE THAT.

UM, BECAUSE THAT'S NOT OUR AREA OF EXPERTISE, BUT THAT'S NOT WHAT WE DO.

UM, SO WE DO, UM, UH, YOU KNOW, KIND OF OFFER THEM OR EXPLAIN TO

[00:45:01]

THEM THAT THEY CAN GO TO THEIR, TO THE BANK WHERE THEY HAVE A BUSINESS AND THEY CAN SPEAK ABOUT THIS TYPE OF DEVELOPMENT AND CHECK WITH THEM WHAT WOULD BE THE BEST ROUTE FOR THEM.

UM, AND SO I, THOMAS, I DON'T KNOW IF YOU HAVE MORE SPECIFIC IN TERMS OF, OF THE, SOME OF THE BARRIERS THAT YOU'VE ENCOUNTERED IN TERMS OF FINANCING.

YEAH.

SO WE DEAL IN INFORM THEM VERY BASICALLY ABOUT THEIR OPTIONS ON WHAT HOMEOWNERS HAVE DONE BEFORE, AND THEY HAVE A CONTOUR THOSE OPTIONS, AS YOU MENTIONED, THE KAYLA KEMP AND HOME EQUITY LINE OF CREDIT, UM, AND THE, MAYBE THE BIGGEST BARRIER IS BILL ARCHER, THEM AND LIVE HERE.

BUT THE, BASICALLY THE MAIN PROBLEM IS THAT RENTAL INCOME OR INCOME THAT YOU, UM, YOU WANT TO HAVE IN THE FUTURE COMING FROM A RENTAL UNIT THAT YOU WILL, WILL EVENTUALLY BUILD, UM, THAT RENTAL INCOME, YOU CANNOT USE THAT AS A QUALIFICATION TO APPLY FOR A LOAN.

AND THAT'S MAYBE ONE OF THE BIGGEST ISSUES IS THAT HOMEOWNER PET THEMSELVES CANNOT DO THAT.

UM, AND WE'VE KIND OF EXPLORED THAT IDEA WITH, UM, WITH LENDERS BEFORE WITH COMMUNITY DEVELOPMENT, FINANCIAL INSTITUTION.

SO IT'S, IT'S A LARGER KIND OF ISSUE.

THANK YOU FOR SPEAKING TO THAT, I'LL LEAVE ANY FURTHER QUESTIONS TO COUNCIL MEMBER TOVA.

I KNOW THAT WAS PART OF THE RESOLUTION THAT SHE WAS ASKING FOR EXPLORATION OF ELIGIBLE FUNDING SOURCES.

I THINK THAT'S A KEY ISSUE AND IT'S REALLY, IT CAN BE DIFFICULT EVEN THOUGH YOU MAY, EVEN THOUGH PEOPLE HAVE THIS EQUITY IN THEIR HOME, BEING ABLE TO ACCESS, IT CAN REQUIRE UP FRONT DOLLARS AND ALSO CAN BE DIFFICULT TO GET.

SO MY SECOND QUESTION, AND LAST QUESTION IS I WANTED TO EXPLORE A LITTLE BIT MORE THE, THE GARAGE CONVERSION AND WAS WONDERING IF YOU COULD DRILL DOWN ON OUR, PERHAPS OUR STAFF COULD DRILL DOWN, UM, AND TELL THEM, AND LET ME KNOW EXACTLY WHAT KINDS OF, UH, BARRIERS THERE ARE TO DOING A, AN ADU WITH A GARAGE CONVERSION.

UM, AND I DON'T KNOW IF OUR STAFF IS STILL ON, I DON'T, MAYBE THEY'RE THERE IN PERSON, BUT I'D LIKE TO IN MORE DETAIL WHAT THE BARRIERS ARE TO DOING GARAGE CONVERSIONS FROM A, FROM A REGULATORY STANDPOINT, I'LL HAVE MR. LLOYD SPEAK TO THAT.

OKAY.

UM, BRENT LLOYD DEVELOPMENT OFFICER WITH DSD AND COUNCIL MEMBER KITCHEN, UM, THE PROVISION ON TWO FAMILY, RESIDENTIAL USES 25 TO 7 74 EXPLICITLY PROHIBITS, UM, GARAGE CONVERSIONS.

SO I THINK THAT IS THAT AS THE PRINCIPAL OBSTACLE, THAT I DON'T BELIEVE THAT PROVISION EXISTS WITH RESPECT TO INTERNAL ACCESSORY APARTMENTS.

UM, BUT IT DOES WITH RESPECT TO TWO FAMILY RESIDENTIAL USE.

OH, SO, UM, SO DOES THAT MEAN THAT, UH, YOU SAID IT DOESN'T EXIST FOR SAY THAT AGAIN? DOES IT EXIST FOR INTERNAL? YEAH.

THE, UH, ACCESSORY APARTMENTS, WHICH ARE ONE OF THE, UM, RESIDENTIAL ACCESSORY STRUCTURE TYPES THAT WE DISCUSSED.

I'M SORRY.

I REVERSED IT.

I EXACTLY FLIPPED IT AROUND THE ACCESSORY APART NET PROVISION.

IT DOES BEING IN AN ACCESSORY APARTMENT.

YEAH.

PRO PROHIBITS GARAGE CONVERSIONS AND SUSAN BARR.

WHO'S WITH OUR RESIDENTIAL REVIEW DIVISION.

CAN I THINK, SPEAK AUTHORITATIVE OR AUTHORITATIVELY TO THIS AND CLEAR UP ANY CONFUSION THAT I CREATED.

OKAY.

UM, GOOD AFTERNOON, SUSAN BARR, UM, RESIDENTIAL PLANS, EXAMINER MANAGER.

SO IN REGARDS TO 25 TO 7, 7, 4, IT EXPLICITLY INDICATES THAT IT HAS TO BE A DETACHED STRUCTURE AND IT CANNOT BE PART OF THE HOUSE.

IT CAN BE ATTACHED BY A COVERED WALKWAY, BUT IT DOES SPECIFICALLY HAVE TO BE A DETACHED STRUCTURE IN REGARDS TO AN ACCESSORY APARTMENT.

IT HAS THE STIPULATIONS OF SOMEONE WHO IS 60 YEARS OF AGE OR OLDER, OR HAS DISABILITIES.

AND IT SPECIFICALLY INDICATES THAT IT CANNOT BE A GARAGE CONVERSION.

OKAY.

SO, UM, MAYBE YOU COULD SEND ME THAT BECAUSE I'M STILL A LITTLE BIT CONFUSED AND I KNOW THAT, UM, I KNOW THAT THESE ARE, UH, CAN BE COMPLICATED.

SO, UM, CAN YOU REPEAT THAT ONE MORE TIME? SO GARAGE WENT, LET'S DO IT A DIFFERENT WAY THAT MIGHT HELP GARAGE CONVERSIONS ARE ALLOWED AND WHAT CIRCUMSTANCES AND JENNY WITH, WITH, UM, UH, SINGLE FAMILY USE.

SO THEY'RE ALLOWED ON ANY PROPERTY,

[00:50:01]

RESIDENTIAL PROPERTY, THE STIPULATION IS THAT IT, IT CANNOT BE A GARAGE.

IT CANNOT BE A CONVERTED GARAGE.

IT CANNOT HAVE AN ENTRANCE THAT FACES THE STREET AND HAS TO BE USED BY OTHER SOMEONE WHO'S 60 YEARS OR OLDER OR HAS DISABILITIES.

OKAY.

SO IT'S VERY LIMITED, VERY LIMITED USE.

SO THOSE ARE THERE SIMILAR, UH, RESTRICTIONS, IF YOU'RE, IF THERE'S A BUILDING ON TOP OF A GARAGE.

NO, I MEAN, YOU, YOU, YOU COULD HAVE AN ACCESSORY APARTMENT ON TOP OF A, OF A DETACH OR, UH, ON TOP OF AN ATTACK.

OKAY.

OKAY.

CAN I, CAN I JUST ASK YOU ALL TO, TO YOU DON'T MIND SENDING ME THAT DESCRIPTION THAT YOU JUST PROVIDED? I'D LIKE TO HAVE IT IN, NOT AT ALL.

YES.

I WILL GET THAT SENT OVER.

OKAY.

AND, AND COUNCIL MEMBER KITCHEN, JUST BECAUSE YOU AND I HAVE WORKED TOGETHER FOR SO MANY YEARS NOW, I THINK I'VE GOT A SENSE OF WHAT YOU WERE ASKING, WHICH IS THAT THE QUESTION IS WHEN CAN AN ACCESSORY DWELLING UNIT BE A GARAGE CONVERSION? AND I THINK FROM THIS PRESENTATION, UM, BECAUSE IN MOST CASES IT HAS TO BE A SEPARATE BUILDING.

IN MOST CASES THAT'S NOT POSSIBLE.

AND IN THE CASES, WHEN IT IS ALLOWED TO BE A PART OF THE SAME BUILDING, THERE IS A LINE THAT EXPLICITLY BANDS IT FROM BEING THE GARAGE.

SO THAT, THAT KNOCKS IT OUT IN MOST CASES.

IS THAT, IS THAT ABOUT, YEAH, THAT'S CORRECT.

AND I APOLOGIZE FOR GETTING THE NOMENCLATURE WRONG, BUT BASICALLY THE ACCESSORY APARTMENT PROVISION DURING, UM, DURING THE ADU REVISION PROCESS, WE TALKED ABOUT INTERNAL 80 USE AND THE ACCESSORY APARTMENT PROVISION IS REALLY THE CLOSEST ANALOG WE HAVE IN OUR CODE TO THAT.

AND IT EXPLICITLY PROHIBITS THE TWO KEY REQUIREMENTS ARE THAT YOU CAN'T HAVE AN ENTRANCE FACING THE STREET.

AND THEN AS, AS YOU'VE TOUCHED ON COUNCIL MEMBER KITCHEN, IT CAN'T INVOLVE A GARAGE CONVERSION.

UM, I DO WANT TO ADD THAT THE RESTRICTIONS WITH RESPECT TO AGE AND DISABILITY WERE NOT INCLUDED IN THE LDC REVISION, AND THERE ARE QUESTIONS SURROUNDING THOSE PROVISIONS IN TERMS OF THEIR ENFORCEABILITY THAT I'M NOT PREPARED TO GET INTO, BUT THOSE ARE, THOSE ARE IN THE CODE AND STAFF DOES REQUIRE THE, UH, THE AFFIDAVIT THAT'S CALLED FOR AS PART OF THAT.

THANK YOU.

YEAH.

I'M GOING TO KICK IT OVER TWO MORE QUESTIONS.

I DID WANT TO SEE IF WE HAVE QUESTIONS FOR THE PRESENTERS SO THAT WE CAN LET THEM GO.

AND THEN WE CAN SORT OF DRILL IN WITH THE STAFF.

ARE THERE ANY MORE QUESTIONS FOR ANY OF THE PRESENTERS COUNCIL MEMBER? TOVO YEAH.

THANK YOU, MR. PRESTON.

I DIDN'T KNOW IF YOU, THERE WAS A POINT WHERE THERE WAS A CONVERSATION AND EXCHANGE ABOUT FINANCING, AND I DIDN'T KNOW IF YOU WANTED TO JUMP IN ON THAT.

YOU LOOKED AS IF YOU MIGHT HAVE INFORMATION YOU WANT TO JUST SHARE, IT COULD BE COUNCIL MEMBER.

I DID HAVE AN ADDITIONAL COMMENT THERE, WHICH WAS MOSTLY TO SAY THAT, UM, BOTH SORT OF CONVENTIONAL AND ALTERNATIVE FINANCING IS VERY PRO ADU RIGHT NOW.

AND THERE ARE A LOT OF UPDATES COMING OUT ON A QUARTERLY BASIS THAT ARE MAKING FINANCING OPTIONS MORE READILY AVAILABLE FOR MORE PEOPLE.

UM, I'M ON A QUARTERLY CALL WITH FANNIE MAE, AND I KNOW THERE ARE FUTURE RENTAL INCOME FOR ME TO USE, TO BE COUNTED TOWARDS THE DTI CONSIDERATIONS, NOT YET, BUT IT'S A GOOD SIGN.

AND THEN THERE ARE ALSO, YOU KNOW, PRIVATE BANKS OR CREDIT UNIONS IN OUR NETWORK OF LENDERS THAT WE REFER CUSTOMERS TO THAT WILL CONSIDER A FUTURE RENTAL INCOME IN A DTI CALCULATION.

THERE ARE ALSO NON DEBT SOLUTIONS.

UM, SO THERE'S SOME NEW ALTERNATIVE FINANCING COMPANIES OUT THERE THAT WE REFER CUSTOMERS TO THAT CAN DO A HOME EQUITY CO-INVESTMENTS OR THERE'S NO INCOME OR DTI REQUIREMENTS WHATSOEVER.

SO IT'S NOT ALL THE WAY THERE YET.

IT'S STILL A PRETTY SIGNIFICANT HURDLE FOR A LOT OF ADU DEVELOPMENT, BUT EVERY QUARTER IT DOES SEEM TO GET A LOT BETTER FOR MORE HOMEOWNERS, WITH MORE OPTIONS COMING ONTO THE MARKET.

IT'S INTERESTING THAT THE LAST KIND OF ALTERNATIVE THAT YOU DISCUSSED THE CO EQUITY INVESTMENT, ARE THOSE PRODUCTS AVAILABLE IN THIS MARKET? I BELIEVE SO.

I, UM, I ACTUALLY HAVEN'T LOOKED INTO IT TOO DEEPLY YET, BUT THESE ARE COMPANIES LIKE POINT OR UNISON OR UNLOCK THAT OFFER FINANCING FOR RENOVATION OR DEVELOPMENT PROJECTS LIKE 80 YEARS THAT ARE NON DEBT.

SO THERE'S NO MONTHLY PAYMENT, THERE WAS NO INTEREST RATE.

UM, THEY DON'T EVEN CONSIDER YOUR INCOME OR CREDIT SCORE IN ANY MEANINGFUL WAY, BUT THEY INVEST ALONGSIDE YOU IN THE DEVELOPMENT OF YOUR HOME AND SHARING THE UPSIDE JUST THE SAME WAY A COMPANY COULD RAISE EQUITY ON THE STOCK MARKET AS AN ALTERNATIVE OPTION FOR HOMEOWNERS WHO MAYBE ARE HAVING DIFFICULTY WITH THE INCOME REQUIREMENTS OF A TRADITIONAL NON THANK YOU.

AND WOULD YOU, I'M SORRY, I MISSED THE NAME OF YOUR COMPANY WHEN YOU

[00:55:01]

WERE BEING INTRODUCED.

MY COMPANY IS NAMED VILLA HOMES AND WE ARE A PREFAB DETACHED TURNKEY PROVIDER OF ADS FOR HOMEOWNERS AND COMMUNITIES THAT BADLY NEED MORE HOUSING VILLA HOMES.

AND IS IT A FOR-PROFIT COMPANY? YES.

YES.

WE'RE A FOR-PROFIT ENTERPRISE.

AND HOW LONG HAVE YOU BEEN IN AUSTIN? JUST ABOUT A QUARTER.

UH, WE LAUNCHED IN SORT OF JULY, AUGUST, UH, IN TERMS OF OUR EXPANSION FROM CALIFORNIA TO AUSTIN, UH, BUT VERY EXCITED TO HELP CONTRIBUTE DIRECTLY TO, UM, BUILDING MORE HOUSING.

IT'S ALL BEEN THE HOUSING CRISIS.

UM, OKAY, GREAT.

THANK YOU VERY MUCH.

THANK YOU, COUNCIL MEMBER.

THANK YOU.

ANY LAST QUESTIONS HERE FOR THE PRESENTERS? WELL, I APPRECIATE COUNCILMEMBER IDENTITY.

DO YOU HAVE SOMETHING OKAY.

OKAY.

ARE THERE YOU ARE, AS SOON AS I'M ABOUT TO GIVE UP ON YOU, YOU CAN WORK.

YEAH, I'M USING MY IPAD, SO IT'S TOTALLY DIFFERENT.

REALLY GIVE ME THE ICON ON THE BOTTOM OF THAT BOTTOM OF THAT.

YOU KNOW, MY WHOLE THING, IT'S, YOU KNOW, I ENDED UP GOING THROUGH THE EQUITY LOAN THROUGH MY, UH, MY CREDIT UNION.

SO I WAS ABLE TO, TO BORROW THAT MONEY ON YOUR PHONE, THE WEALTH OF MY PROPERTY.

AND I ALWAYS TELL PEOPLE THAT THEY SHOULD JUST GO A LITTLE BIT OVER IN CASE OF UNFORESEEN COSTS, BECAUSE AT THE END WE RAN OUT OF MONEY AND HAD TO USE OUTDOOR INDOOR MATERIAL ON THE OUTSIDE, WHICH I HAD DINNER PREPARED, UH, SEVEN YEARS LATER, BUT IT DID GIVE ME AN OPPORTUNITY TO GET MY OCCUPANCY PERMIT.

ANOTHER STRUGGLE THAT I HAD THAT, THAT YOU DON'T WANT TO GO THROUGH IS YOU HAVE TO PULL OUT THE PERMIT AND THEN BEFORE YOU CAN PROCEED, THEY HAVE TO COME AND INSPECT TO MAKE SURE ALL THE WORK IS DONE RIGHT.

AND THAT USUALLY TAKES TWO YEARS FOR IT TO COMPLETE A WHOLE FORM, WHICH IS VERY HARD.

THAT'S WHY A LOT OF PEOPLE PREFER TO JUST GO INTO A CONTRACTOR AND PAY THEM TO GO AHEAD AND GO THROUGH THE WHOLE PROCESS, WHICH IS SAVING YOU A LOT OF TIME AND MAYBE SOMETIMES BUNNY.

BUT I'M VERY CURIOUS BECAUSE I SAW WHAT I, FIRST TIME I EVER SEEN AN ADVERTISE.

AND I DON'T KNOW IF THAT'S BILLER HOMES, BUT IT'S A, UH, WE CAN BUILD YOU A BRAND NEW HOUSE ON YOUR PROPERTY.

AND IF YOU GIVE US CONTROL OF BUILDING THE HOUSE IN THE BACK AND WE RENTED IT OUT, IF THAT'S SORT OF THE, WHAT, HOW Y'ALL WORK IT OUT WHEN, WHEN YOU'RE WORK WITH WHAT, SO PROPERTY OWNERS, OR IF THEY'RE, WHAT, HOW DO THEY ABLE TO DO THAT WITH, WITHOUT ANY DEBT? I'M JUST CURIOUS, UM, WE'RE COUNCIL MEMBERS, IF THAT WAS A QUESTION FOR ME, THAT LAST MODEL THAT YOU MENTIONED, UM, I'M NOT ENTIRELY SURE I FOLLOWED IT COMPLETELY, BUT IT'S DEFINITELY NOT US.

WE ARE A SERVICE PROVIDER AND PRACTITIONER ON BEHALF OF HOMEOWNERS AND CLIENTS.

SO WE ARE BUILDING 80 YEARS, UM, FOR CUSTOMERS AT THE END, THEY OWN IT COMPLETELY AND CAN USE IT FOR THEIR FAMILY MULTI-GENERATIONAL HOUSEHOLDS, OR THEY CAN RENT IT OUT AT THEIR DISCRETION.

WE'RE NOT INVOLVED IN, UH, SORT OF ANY SUBSEQUENT OWNERSHIP OR RENTAL INCOME OR DEBT OR ANYTHING LIKE THAT.

UH, YOU ALSO HAD A COMMENT ABOUT THE UNPREDICTABILITY OF TRADITIONAL SITE-BUILT OR STICK-BUILT CONSTRUCTION.

AND I THINK THAT'S A VERY COMMON PAIN POINT FOR A LOT OF CUSTOMERS.

YOU SIGN UP FOR X PRICE AND SIX MONTHS IN THE PRICE HAS JUMPED ON YOU 20 OR 30,000.

AND THEN ANOTHER SIX MONTHS LATER, YOU GET A DELAY ON YOUR PROJECT AND THEN YOUR PRICE JUMPS AGAIN.

UM, IT'S SOMETHING THAT WE CERTAINLY WOULDN'T WISH UPON ANY HOMEOWNER WHO WAS LOOKING TO BUILD AN ADU.

AND I THINK THAT'S ONE OF THE SORT OF INHERENT BENEFITS OF PREFABRICATED CONSTRUCTION.

YOUR WHOLE PROCESS IS MUCH MORE CONTROLLABLE AND PREDICTABLE.

YOU'RE GOING TO CLIMATE CONTROLLED ENVIRONMENT.

ALL OF YOUR MATERIALS ARE ALREADY THERE ON SITE.

YOU'VE GOT MACHINES HELPING MOVE THE LABOR THROUGH OR THE HOME THROUGH WITH, UM, VERY SPECIALIZED LABOR WITH MACHINE LIKE PRECISION.

UM, SO REDUCING DELAYS, REDUCING COST OVERRUNS, UH, VERY MUCH CORE TO OUR ETHOS AS A BUSINESS WE'LL TAKE FOR THAT COLUMNARY CARRIER BECAUSE I REALLY, UM, I'VE HAD PEOPLE COME TO ASK ME HOW I WAS ABLE TO DO MINE.

AND, UH, I DID REVEAL MY FRUSTRATION AND I ALWAYS JOKE WITH THE GUYS SAYING, OH, WELL, HOW MANY TIMES DO YOU WANT TO GO

[01:00:01]

THROUGH THE WORST BICEPS? YOU KNOW? AND IT'S SO FRUSTRATING BECAUSE I ALWAYS TELL PEOPLE, WELL, ALMOST GOT DIVORCED THREE TIMES.

IT'S THE FRUSTRATION THAT DEALING WITH THE CITY'S CODE.

IT JUST, UH, I MEAN, IT'S SO FRUSTRATING AND IT JUST, YOU WONDER WHY YOU HAVEN'T BOTHERED GOING THROUGH THE PROCESS.

SO I AM REALLY EXCITED TO HEAR THAT THERE ARE OTHER ALTERNATIVE WAY, ESPECIALLY THE BRIEF BACK, YOU KNOW, AND I'VE SEEN SOME OF THESE THREE BANDS ARE GETTING PUT TOGETHER HERE JUST RECENTLY.

IT'S IT'S, UH, I THINK IT JUST MIGHT BE THE SOLUTION OF, UH, NOT HAVING TO GO THROUGH THAT PROCESS OR HOW DO YOU DEAL WITH THE, UH, THE ZONING AND THE CODE INSPECTORS? DO THEY HAVE TO COME IN THERE, EXPECT EVERY LITTLE PIECE THAT YOU PUT IN THERE? SO, UM, THERE WAS SORT OF TWO PARTS TO PERMITTING AND INSPECTIONS IT JUST TO OVERSIMPLIFY.

YOU'VE GOT YOUR, YOUR, YOUR USE OR YOUR, YOUR SORT OF PLANNING DEPARTMENT ZONING, AND THEN YOU'VE GOT YOUR BUILDING INSPECTIONS.

UM, THE PLANNING DEPARTMENT, I AGREE IS A COMPLICATED PROCESS AND THE WAY WE SOLVE THAT FOR CUSTOMERS IS LARGELY JUST BY ABSTRACTING IT AWAY FROM THEM.

SO THEY DON'T HAVE TO DEAL WITH IT.

I WOULD IMAGINE MY SORT OF CO GUESTS HERE HAVE A SIMILAR PROCESS WHERE THEY JUST APPLY MANPOWER AND EXPERTISE TO MANAGE THAT COMPLICATED PROCESS OF PERMITTING AND THE PLANNING DEPARTMENT ON BEHALF OF THE CUSTOMER, SO THAT THE CUSTOMER DOESN'T HAVE TO DEAL WITH ALL OF THE COMPLICATIONS AS A RESULT, THE BUILDING DEPARTMENT IS A DIFFERENT MATTER, AND WE TAKE A UNIQUE, UNIQUE APPROACH TO PREFABRICATION AND THAT WE'RE BUILDING MANUFACTURED HOMES TO HIDE CODE.

SO THEY'RE ACTUALLY STAMPED AT THE FACTORY AND APPROVED FROM SORT OF A BUILDING DEPARTMENT PERSPECTIVE IN ADVANCE, AND THEREFORE CAN SORT OF EXPEDITE THROUGH OR BYPASS A LOT OF THE CUMBERSOME, EITHER LOCAL CITY OR COUNTY, UM, BUILDING INSPECTIONS AND BUILDING PERMITTING PROCESS BECAUSE IT'S ALREADY BEEN APPROVED IN ADVANCE AT THE FACTORY ON A FEDERAL LEVEL, BUT GENERALLY WE'VE TRIED TO CREATE AN EFFICIENT AND EXPEDITED PROCESS.

THAT'S VERY TURNKEY AND CONVENIENT FOR CUSTOMERS.

AND I IMAGINE MY, MY CO PANELISTS HAVE A SIMILAR SORT OF PROCESS AS WELL FOR THEIR CUSTOMERS.

WELL, THANK YOU FOR THAT INFORMATION.

VERY VALUABLE.

WELL, THANK YOU SO MUCH TO OUR PANEL.

COUNCILMEMBER ELLA, SORRY TO JUMP BACK IN AGAIN.

UM, I HAD A QUESTION THIS MIGHT BE FOR THOMAS.

UM, I WANTED TO KNOW IF YOU COULD SPEAK TO LIKE, ARE THERE PRE-APPROVED PLANS OR THINGS THAT CAN BE SHARED THAT MAY MAKE SENSE FOR DIFFERENT PROPERTIES SO THAT PEOPLE AREN'T HAVING TO START FROM SCRATCH EACH TIME.

I KNOW THERE HAVE BEEN SOME SITES THAT I'VE SEEN IN THE PAST, AND I DON'T KNOW THE NAMES OF THEM, BUT IT WAS BASICALLY FOR PEOPLE WHO WANTED TO BUILD A HOME AND YOU COULD SEARCH THIS CATALOG OF FLOOR PLANS AND EITHER USE THOSE AS YOUR FLOOR PLAN OR USE THAT AS A STARTING POINT, IS THAT A SERVICE THAT YOU'RE OFFERING OR DO YOU KNOW IF THOSE ARE AVAILABLE ANYWHERE? SO WE HAVE, UM, AS A PROGRAM WE'VE CREATED DESIGNS TO HELP STREAMLINE OUR OWN PROCESS IN SPEAKING TO THE HOMEOWNERS AND, UH, AND PROVIDING OUR SERVICES AS AN ARCHITECT.

UM, THAT BEING SAID, WE STILL NEED TO, UM, ACTUALLY BE ONSITE AND CREATE A DESIGN THAT'S SPECIFIC TO EACH PROPERTY.

UM, AND THAT'S A PRETTY INHERENT PROCESS FOR EACH, UM, EACH DEVELOPMENT AS I UNDERSTAND IT.

AND, UH, AND WE HAVE, UH, WORKED WITH THE CITY ON THE, THE AFFIRMATION RESOLUTION BEFORE ON THE 2020 RESOLUTION.

AND, UH, I BELIEVE WE'RE, WE'RE THE, THE CITY OF AUSTIN STAFF TO UNDERSTAND IF DESIGN PLANS AS A, A PRODUCT THAT CAN BE OFFERED TO HOMEOWNERS, IF THAT'S SOMETHING THAT CAN EXIST.

AND AS WE UNDERSTAND IT, I BELIEVE THE CITY OF AUSTIN KIND OF TALKED TO THEIR LEGAL DEPARTMENT AND THEY CAME TO THE CONCLUSION