[00:00:04]
[CALL TO ORDER]
OVERSIGHT COMMISSION, FEBRUARY 16TH AT, UH, WHAT IS IT? TWO, SIX TO A SEVEN.UM, WE'LL GO AHEAD AND JUMP INTO A CALL TO ORDER AND DO A ROLL CALL.
UM, IF WE COULD START VIRTUALLY, UM, THAT WOULD BE FANTASTIC.
AND IF YOU COULD GO IN ALPHABETICAL ORDER WITH FIRST NAME, THAT WOULD BE HELPFUL TO GET ORGANIZED.
SO VIRTUALLY, CAN YOU HEAR ME? IT DOESN'T SEEM LIKE IT.
WE'LL GO AHEAD AND START, UH, PHYSICALLY HERE IN THE OFFICE.
IT, UH, UM, SO WE'LL JUST START AT THE END THERE.
MICHAEL, CAN YOU HEAR US OKAY.
FOR THOSE OF YOU WHO ARE VIRTUAL? CAN YOU HEAR US, MICHAEL JOHANNE HAND PRESENT.
NICOLE REN PRESENT KRISTEN WEAVER PRESENT.
CAN YOU HEAR ME? YES, I CAN HEAR YOU.
CAN YOU HEAR ME NOW? YEAH, I CAN HEAR YOU.
I JUST WANT YOU TO KNOW THAT MY SYSTEM IS GOT A PROBLEM.
SPECTRUM IS COMING LATER THIS AFTERNOON TO LOOK AT THINGS.
IT MADE ME TO, MY SYSTEM MAY BE VERY SLOW FOR US.
WE JUST DID A QUICK ROLL CALL PHYSICALLY.
YOU WANTED TO JUMP OVER TO VIRTUAL ROLL CALL.
SO I'LL JUST CALL YOUR NAME, UH, COMMISSIONER DASGUPTA IF YOU COULD JUST SAY PRESENT WE'RE HERE.
UH, COMMISSIONER CHARLES CURRY RESIDENT COMMISSIONER COMMISSIONER, JOHN MCNAB PRESENT.
AND IS THERE ANYONE ELSE ON THAT? I DID NOT CALL.
UM, MOVING ON TO CITIZEN COMMUNICATION.
UH, DO WE HAVE ANYBODY, UH, SIGNED UP FOR CITIZEN COMMUNICATION TODAY? I DO NOT SEE, SO, UH, WE CAN MOVE ON
[1.a. Approval of the minutes from the November 17, 2021 Bond Oversight Commission meeting]
TO APPROVAL OF MINUTES.IS THERE APPROVAL OF MINUTES FROM THE NOVEMBER 17TH MEETING? UH, LAST YEAR AND WHENEVER WE GET TO A POINT, IF SOMEONE WANTS TO MAKE A MOTION TO APPROVE AND THEN SECOND, WE CAN VOTE ON THAT AGAIN, RIGHT? COMMISSIONER DASGUPTA AT THE MOTION TO APPROVE.
AND, UM, IS THAT COMMISSIONER MCNABB? YES.
UM, ALL IN FAVOR TO APPROVE THE MINUTES, SAY AYE.
APPROVAL OF MINUTES PASSES UNANIMOUSLY UNANIMOUSLY, UM, LOOK, DISCUSSION POINT
[2.a. Introduction of a newly appointed member to the Bond Oversight Commission]
HERE.ITEM NUMBER TWO, INTRODUCTION OF NEWLY APPOINTED MEMBER TO THE BOND OVERSIGHT COMMISSION.
UM, I'M GOING TO ASSUME THAT THAT IS KRISTIN WEAVER.
THERE ARE SEVERAL OF US THAT ARE NEWER.
SO, UH, KRISTEN, IF YOU DON'T MIND JUST GIVING A BRIEF INTRODUCTION WHAT DISTRICT YOU'RE REPRESENTING.
UM, I AM REPRESENTING DISTRICT ONE.
I WAS APPOINTED BY NATASHA HARPER, MADISON.
UM, HAVE DONE SO FOR A LITTLE OVER 10 YEARS NOW.
UM, JUST A LITTLE BIT ABOUT MYSELF.
I MOVED TO AUSTIN IN THE MID EIGHTIES AS A KID.
SO IF LIVED HERE MOST OF MY LIFE, UM, MY HUSBAND WAS BORN AT ST DAVID'S.
AND, UM, IN TERMS OF PROFESSIONALLY, I'M A CORPORATE TAX DIRECTOR, CPA BY TRADE.
SO I'M DO IN-HOUSE TAX PLANNING AND TAX COMPLIANCE WORK.
SO HAVE A LOT OF FINANCE AND ACCOUNTING BACKGROUND AND THOUGHT THIS COULD BE A GOOD WAY TO CONTRIBUTE TO THE COMMUNITY.
SO I'M HAPPY TO BE HERE AND HAPPY TO MEET ALL OF YOU.
WE WILL, UH, KEEP MOVING ON HERE TO ITEM NUMBER THREE, STAFF BRIEFINGS, UH, THREE, A STAFF
[3.a. Staff briefing from the Public Works Department related to the impact of inflation on bond programs]
BRIEFING FROM THE PUBLIC WORKS DEPARTMENT RELATED TO THE IMPACT OF INFLATION ON BOND PROGRAMS.[00:05:05]
HELLO EVERYBODY.UH, COMMISSIONER, MY NAME IS ERIC BAILEY.
I'M THE ASSISTANT DIRECTOR OF PUBLIC WORKS.
UM, AND IF Y'ALL COULD BRING UP THE PRESENTATION, THAT'D BE GREAT SEMI PLEASE.
IF WE COULD HOLD QUESTIONS TO THE END TO THAT WOULD BE PREFERENTIAL.
UH, I'M ERIC BAILEY, THE ASSISTANT DIRECTOR OF PUBLIC WORKS OVER CAPITAL PROJECT DELIVERY HERE TO GIVE, UH, AN UPDATE ON, UH, CONSTRUCTION COST INFLATION HERE OVER THE LAST COUPLE OF YEARS, HOW THAT'S IMPACTING SOME OF OUR BOND PROJECTS AND FUNDING.
SO, UM, ENGINEERING NEWS RECORD IS, UH, AN INDUSTRY PUBLICATION THAT AMONG OTHER THINGS PUBLISHES, UH, CONSTRUCTION COSTS INDICES, UM, ACROSS THE INDUSTRY.
THERE'S A CONSTRUCTION COST INDEX, WHICH IS FOR, UM, CIVIL TYPE OF PROJECTS, ROADWAYS PIPELINES, THINGS LIKE THAT.
AND THEN A BUILDING COST INDEX, WHICH IS FOR VERTICAL PROJECTS.
UH, AND WHAT THEY DO IS THEY TAKE AND, AND PRICE A BASKET OF GOODS, WHICH INCLUDES, UM, LABOR, CONCRETE, STEEL, AND LUMBER, UM, ACROSS 20, UM, INDIVIDUAL CITIES, UH, MEASURED ON A MONTHLY BASIS.
AND THEN THEY TAKE THAT AND ASSEMBLE IT INTO BASICALLY AN INDUSTRY AVERAGE, UH, FOR THE AREA.
SO UNLESS, UM, AN AREA IS IN A SPECIFIC CITY, YOU'RE SUPPOSED TO USE THE, UH, THE, THE MONTHLY AVERAGE, THE CLOSEST CITY TO AUSTIN IS DALLAS, UM, WHICH OBVIOUSLY IS NOT THE SAME CITY.
SO WE USE THE INDIVIDUAL AVERAGE.
THIS IS REALLY SIMILAR TO THE CONSUMER PRICE INDEX THAT MEASURES, UH, INFLATION ACROSS THE ECONOMY, UM, AS A WHOLE, UM, NEXT SLIDE PLEASE.
SO THIS IS THE RAW DATA FOR THE CONSTRUCTION COST INDEX AND THE BUILDING COST INDEX.
AS YOU CAN SEE, UM, THIS IS FROM JANUARY OF 2019 THROUGH FEBRUARY OF 2022.
I'LL GET INTO A BETTER VISUAL REPRESENTATION HERE, BUT, UM, IF YOU GO TO THE NEXT SLIDE, YOU CAN SEE THIS IS THE CONSTRUCTION COST INDEX FROM MARCH OF 2020 TO FEBRUARY.
UM, THE GROW OR SORRY, FROM JANUARY OF 2020 TO FEBRUARY OF 22, YOU CAN SEE THE GROWTH FOR THE FIRST COUPLE OF MONTHS IN 2020 IS IT'S ABOUT STANDARD.
AND THEN, UM, THROUGH THE BEGINNING OF THE PANDEMIC, MARCH, APRIL, MAY, AND THEN YOU SEE IT REALLY TAKE OFF THERE, UM, INTO 21, A LOT OF THAT RELATED TO MANY OF THE, UM, THE ECONOMIC ISSUES THAT ARE SEEING ACROSS THE ECONOMY, UM, OVERALL THERE WAS AN 11% CONSTRUCTION COSTS INCREASED FROM MARCH OF 2020 TO FEBRUARY OF 2022, WHICH THAT REPRESENTS, YOU KNOW, REAL COSTS TO CONSTRUCTION PROJECTS.
SO, UH, WE HAVE BEEN SEEING SOME INCREASING, UH, COSTS FOR PROJECTS THAT WE PUT OUT TO BID A LITTLE BIT LATER IN THE PRESENTATION.
WE'LL TALK ABOUT SOME MITIGATION STRATEGIES AND THINGS THAT WE'VE BEEN UNDERTAKING TO, TO WORK WITH THIS.
SO, UM, IF YOU GO TO THE NEXT SLIDE AS WELL, THIS IS THE BUILDING COST INDEX.
UM, THIS IS AGAIN FOR VERTICAL TYPE CONSTRUCTION.
YOU CAN SEE THERE WAS A LARGER INCREASE IN THE BUILDING COST INDEX THAN THERE WASN'T THE CONSTRUCTION COST INDEX DUE TO THE PANDEMIC AND SUPPLY CHAIN AND THINGS LIKE THAT.
SO AGAIN, YOU CAN SEE VERY REAL IMPACTS HERE IN TERMS OF INFLATION ON THE, UH, ON THE CONSTRUCTION INDUSTRY.
AND IT, UM, OBVIOUSLY HAS A VERY REAL EFFECT ON THE AMOUNT OF WORK THAT WE'RE ABLE TO COMPLETE WITH WITHIN OUR BOND PROGRAMS. SO, UM, NEXT LINE, SO, UH, YOU KNOW, FROM THE CHARTS, OBVIOUSLY THE INFLATION IS REAL.
THE QUESTION IS, YOU KNOW, WHAT CAN WE DO ABOUT IT? UM, THERE'S A COUPLE OF STRATEGIES THAT WE CAN DO, UM, INDIVIDUALLY, BUT OVERALL, YOU KNOW, AS AN INDIVIDUAL ACTOR IN THE CONSTRUCTION ECONOMY, THERE ISN'T A WHOLE LOT WE CAN DO ABOUT INDIA'S, INDUSTRY-WIDE INFLATION OTHER THAN ADOPT STRATEGIES TO TRY AND MITIGATE OUR RISK AND, UM, DEAL WITH SOME THINGS THAT WAY.
UM, ONE WAY WE COULD, COULD DEAL WITH IT IS DELAY CONSTRUCTION PROJECTS UNTIL THE INFLATION CORRECTS, AS YOU CAN SEE, UM, FROM THOSE GRAPHS, THERE IS, THERE WERE SOME TIMES OF CORRECTION IN TERMS OF THE ACTUAL INFLATION PRICES EVENTUALLY, UM, YOU KNOW, FROM EVERYTHING THAT I'VE SEEN,
[00:10:01]
UM, THERE WILL BE SOME CORRECTION TIME.IT PROBABLY WILL NEVER GET BACK DOWN TO THE LEVELS.
IT WAS, YOU KNOW, IN, UH, THE 2020 TIMEFRAME, BUT THERE WILL PROBABLY BE SOME CORRECTION AT SOME POINT, HOWEVER, AS YOU ALL KNOW, THERE ARE, UH, OTHER PRESSURES FROM THE CITY TO DELIVER THESE PROJECTS IN A TIMELY MANNER, USE THESE BOND FUNDS AND THINGS LIKE THAT.
SO DELAYING CONSTRUCTION, ISN'T, ISN'T REALLY A VIABLE OPTION FOR US.
UM, ANOTHER OPTION WE CAN DO AND THAT, THAT WE'VE USED IS TO, YOU KNOW, LOCK IN OUR PRICING VIA GETTING AS MANY PROJECTS OUT TO ADVERTISE AND EXECUTING IN CONTRACTS.
AS SOON AS WE CAN, WE BASICALLY IMPLEMENT WHAT'S A, A BID GUARANTEE.
ONCE A CONTRACTOR SUBMITS A BID TO US, IT LOCKS IN THAT PRICE FOR, UH, A HUNDRED, EITHER 90 OR 120 DAYS, DEPENDING ON THE TERMS OF THE CONTRACT.
UM, SO WE HAVE CERTAINTY ABOUT THAT ONCE A PROJECT, UM, ONCE THE BIDS ARE OPEN FOR A PROJECT, UM, ANOTHER STRATEGY THAT WE IMPLEMENT IS UPDATING THE PROJECT BUDGETS ON A REGULAR BASIS.
THE PROJECT CONSTRUCTION BUDGETS ARE UPDATED MONTHLY BY THE PROJECT MANAGERS.
AND WE ALSO, UM, ARE WORKING WITH OUR ENGINEERS AND CONSULTANTS WHO ARE INCORPORATING THE INFLATIONARY PRESSURES INTO THEIR, UM, PRICE AND COST ESTIMATES AS WE MOVE FORWARD.
AND ESPECIALLY AS BEDTIME APPROACHES WORKING TO MAKE SURE THAT THAT THOSE, UM, THOSE COSTS ARE INCLUDED IN WHAT WE'RE ESTIMATING THE, UM, CONSTRUCTION CONTRACT TO BE.
SO, UM, RIGHT NOW WE HAVE NOT HAD ANY ISSUES WHERE OUR PROJECTS ARE UNDERFUNDED, OR WE HAVEN'T BEEN ABLE TO, TO, UM, UNDERGO OR TAKE UNDERTAKE A PROJECT BECAUSE OF THE INFLATIONARY, UH, MEASURES THAT HAVE TAKEN PLACE, WHERE WE'VE BEEN ABLE TO ADAPT, UM, TO THE INFLATION AND WORK IT INTO OUR PROJECT BUDGETS AND THAT KIND OF THING.
SO, UM, RIGHT NOW WE'RE KIND OF RIDING THE SAME WAVE THAT, UM, THAT EVERYBODY ELSE IS, AND WORKING WITH THE, THE PRESSURES, HOPEFULLY, UM, YOU KNOW, THINGS LEVEL OUT HERE IN THE NEXT SIX MONTHS TO A YEAR, UM, AS THEY HOPEFULLY WILL WITH THE REST OF THE ECONOMY.
BUT FOR RIGHT NOW, WE ARE USING OUR MITIGATION STRATEGIES AND, AND TRYING TO ACCOUNT FOR THE INFLATION IN THE, IN TERMS OF ADDITIONAL, UM, CONSTRUCTION COST PRICING AS WE MOVE FORWARD.
SO, AND WITH THAT, UM, THAT'S THE END OF MY PRESENTATION.
ANY, ANY QUESTIONS? OH, GO AHEAD.
SHOULD I GO AHEAD NOW? I WAS GOING TO JUST SAY THERE'S A FEATURE IN THE MEETING, UM, SOFTWARE THAT, UH, THAT SHOULD LOOK LIKE A HAND YOU CAN CLICK ON.
AND IF YOU DO THAT, IT'LL CREATE A SOUND AND BASICALLY CALL OUT THAT YOU HAVE A QUESTION.
UM, UH, I DON'T SEE THAT IF YOU DON'T, UM, WE DON'T HAVE TO SPEND A LOT OF TIME ON IT, BUT, UH, BUT JUST CALL OUT YOUR NAME THEN, OR I DON'T KNOW, I'LL LOOK FOR YOU ANYWAY.
FIRST QUESTION COMMISSIONER DASGUPTA, UM, THIS MAY BE A LITTLE TRICKY, UH, BUT SHOULD WE, WHEN WE GO OUT FOR THIS, UH, YOU KNOW, THE BOND ELECTIONS, SHOULD WE HAVE A FALL APART THERE WE ARE ASKING FOR, LET'S SAY $10 MILLION PLUS, EH, INFLATIONARY ADJUSTMENT AT THE TIME OF THE CONTRACT EXECUTION.
WOULD THAT FLY WITH THE VOTERS? I MEAN, I MEAN, I DON'T KNOW WHETHER OR NOT IT WOULD FLY WITH THE VOTERS.
THAT'S, THAT'S A WHOLE DIFFERENT QUESTION THAN A BUNCH OF DIFFERENT THINGS, BUT, YOU KNOW, THE WAY, THE WAY WE MOVE FORWARD WITH, YOU KNOW, WE DON'T SELL ALL THE BONDS IN A, IN A BOND ELECTION AT ONCE, OBVIOUSLY.
SO WE KNOW WE'RE NOT SITTING ON A BIG PILE OF MONEY, THAT'S JUST SORT OF LOSING VALUE.
UM, YOU KNOW, WE, WE GO YEAR BY YEAR AND KIND OF ANALYZE WHAT OUR ACTUAL NEED IS.
AND THAT'S ANOTHER WAY OF KIND OF MITIGATION MITIGATING THESE PRESSURES IS THAT, UM, YOU KNOW, WE'RE ABLE TO HOLD ONTO OUR MONEY AND, AND, UM, YOU KNOW, NOT INCURRED THAT LIABILITY UNTIL WE ABSOLUTELY NEED TO HAVE IT.
UM, YOU KNOW, YOU'RE KIND OF ASKING A LITTLE BIT OF TWO DIFFERENT QUESTIONS BECAUSE, YOU KNOW, ALTHOUGH THE INFLATIONARY PRESSURES ARE REAL, YOU KNOW, THE BIDDING ENVIRONMENT CAN BE VERY COMPETITIVE DEPENDING ON THE PROJECT, SO THEY CAN OFFSET EACH OTHER TO SOME EXTENT.
UM, WE ALWAYS TRY AND GET AS MANY BITTERS AS WE CAN AND THE BEST PRICING THAT WE CAN ON OUR PROJECTS.
UM, AND I'M NOT REALLY SURE OF ANY WAY THAT WE CAN NECESSARILY WE CAN'T CONTRACT NOW FOR PROJECT TO PROJECTS THAT WE DON'T HAVE PLANS AND SPECIFICATIONS FOR, OBVIOUSLY.
SO UNFORTUNATELY FOR THE MOST PART, IT'S JUST KIND OF PART OF THE PROCESS AND PART OF THE ENVIRONMENT THAT WE'RE IN, UM, IN TERMS OF MANAGING THESE PROJECTS AND MANAGING THE BUDGETS AND MANAGING THE, THE BOND SALES AND THINGS GOT A RELATED QUESTION, DO WE, DO, YOU KNOW, UM, WHAT'S, WHAT'S IT BASICALLY, WHAT IS THAT RISK BASED BUY PROPOSITION OR BOND PACKAGE BECAUSE OF THE RECENT INFLATIONARY
[00:15:01]
COSTS? LIKE WHAT CAN WE SEE THAT POTENTIALLY IS NOT GOING TO GET DONE BECAUSE OF THIS BASED ON WHAT WAS APPROVED? YEAH, RIGHT NOW, ALL THE, ALL THE SPECIFIC PROJECTS THAT WE'VE IDENTIFIED IN, IN THE BOND, UM, IN THE BOND ELECTIONS, NONE OF THOSE PROJECTS THAT ARE AT RISK, THERE'S ALWAYS SOME, UM, YOU KNOW, IN INFLATION, THAT'S PROGRAMMED INTO THE PRICING THAT WE GET FOR PROJECTS.SO, YOU KNOW, A PROJECT THAT'S, YOU KNOW, WE PRICE OUT AT $10 MILLION TODAY WHEN IT'S ACTUALLY IN CONSTRUCTION, YOU KNOW, FOUR YEARS FROM NOW, YOU KNOW, YOU HAVE THE INFLATION AND JUST THE NATURAL GROWTH.
SO THERE WAS SOME OF THAT INCLUDED IN THE BOND CALCULATIONS TO BEGIN WITH.
THIS WAS JUST A LITTLE BIT HIGHER THAN WHAT WE ANTICIPATED.
AND IT'S ALSO COVERED BY SOME OF THE CONTINGENCY THAT'S ALSO IN THOSE ESTIMATES.
SO RIGHT NOW WE'RE, WE'RE NOT AT RISK IN TERMS OF NEEDING TO ABANDON ANY PROJECTS OR, OR SHOW SHORTENED SCOPES OR ANYTHING LIKE THAT.
UM, WE'RE ABLE TO CONTINUE ON WITH, WITH, UM, YOU KNOW, THE BULK OF THE WORK.
UM, YOU KNOW, AND THEN WHAT WE'RE REALLY DOING IS KIND OF AROUND THE EDGES, IF THERE'S SOME SMALLER PROJECTS OR IDQ PROJECTS OR THINGS LIKE THAT, WHERE THE FUNDING, UM, MAY NEED TO GET SHIFTED, OR WE'RE ALWAYS LOOKING FOR OTHER SOURCES OF FUNDING AS WELL IN TERMS OF GRANT FUNDING AND, AND FEDERAL PARTICIPATION AND THINGS LIKE THAT.
SO, UM, YOU KNOW, RIGHT NOW IT'S NOT, IT'S NOT AN ISSUE SOMETHING OBVIOUSLY TO KEEP AN EYE ON, BUT NOTHING WHERE WE'RE SAYING, OH, WE CAN'T DO, YOU KNOW, X, Y, AND Z PROJECT BECAUSE OF INFLATION.
AND, YOU KNOW, WE NEED TO ALSO KEEP IN MIND THE SOCIAL COSTS INVOLVED OF DELAYING OR NOT COMPLETING THE PROJECT.
ARE THERE ANY ADDITIONAL QUESTIONS OR COMMENTS? OKAY.
[3.b. Staff briefing from the Housing and Planning Department related to the 2018 Affordable Housing Bond]
B STAFF BRIEFING FROM THE HOUSING AND PLANNING DEPARTMENT RELATED TO THE 2018 AFFORDABLE HOUSING BOND.UH, MY NAME IS JAMIE MAY AND THE HOUSING AND COMMUNITY DEVELOPMENT OFFICER WHERE THE HOUSING AND PLANNING DEPARTMENT.
UM, WE HAVE A PRESENTATION PREPARED.
UH, COULD YOU SPEAK UP A LITTLE BIT? YES, SIR.
CAN YOU HEAR ME NOW? YEAH, MISSOURI RIVER.
SO AGAIN, MY NAME IS JAMIE , I'M THE ACTING HOUSING AND COMMUNITY DEVELOPMENT OFFICER FOR THE HOUSING AND PLANNING DEPARTMENT, UH, AND, UH, LIKE TO REVIEW OUR, UH, 2018 GENERAL OBLIGATION BOND.
UM, BELIEVE WHAT I SPOKE WITH MR. MIXON, HE SAID HE W UH, UH, WE WOULD GO OVER THESE SLIDES.
WOULD YOU LIKE ME TO GO OVER THEM MYSELF OR? SURE.
SO WE'LL MIX IN FINANCIAL SERVICES DEPARTMENT.
I'LL BE, UH, KICKING OFF KIND OF THIS INTRODUCTION, THESE FIRST COUPLE OF SLIDES, AND THEN I'LL BE HANDING IT BACK TO, UH, JAMIE AND HOUSING AND PLANNING TO TAKE IT FROM THERE.
AND SO THIS IS JUST THE INTRODUCTORY SLIDE OF THE BOND OVERSIGHT COMMISSION, THE VISION, THE MISSION, THE GOALS OF THE COMMISSION, AND TALKING ABOUT THE 2018, UH, AFFORDABLE HOUSING BOND TODAY.
UH, THIS JUST GIVES YOU THE BOND LANGUAGE JUST AS A, UH, AS A REMINDER OF, OF WHAT THE, UH, THE, THE BOND AS IT WAS APPROVED.
AND IT IS FOR THE PLANNING CONSTRUCT TO CONSTRUCTING, RENOVATING, IMPROVING, AND EQUIPPING AFFORDABLE HOUSING FACILITIES FOR LOW INCOME AND MODERATE INCOME INDIVIDUALS AND FAMILIES, UM, TO PROVIDE YOU AN UPDATE ON WHERE THE, UH, HIGH LEVEL FINANCIALS CURRENTLY STAND WITH THIS BOND.
UH, THERE WAS 250 MILLION THAT WAS APPROVED.
AND AS OF THE END OF QUARTER, ONE OF FISCAL YEAR 2022, WHICH IS DECEMBER 31ST, 2021, UM, 131.9 MILLION OF THE 250 MILLION HAS BEEN SPENT.
58.3 MILLION IS ENCUMBERED, UH, WHICH GIVES A TOTAL COMMITTED AMOUNT OF 190.2 MILLION.
AND THAT LEAVES 59.8 MILLION STILL AVAILABLE.
UH, THAT'S IN TOTAL AT 76% COMMITTED, UH, OF THE 250 MILLION.
UM, THIS SLIDE GIVES YOU A KIND OF A TIMELINE OF HOW THE BOND HAS BEEN SPENT DOWN AND THE PROJECTION GOING FORWARD.
SO AS YOU CAN SEE, UM, THE, THE BLUE LINE GIVES YOU, UH, THE ACTUALS OF THE BLUE LINE GOES THROUGH THE, A THROUGH F Y 21.
AND THEN THE ORANGE LINE GIVES YOU WHAT IS PROJECTED BOTH FOR THIS YEAR FISCAL YEAR 22, AND FOR NEXT YEAR OF FISCAL YEAR 23, UM, THROUGH THE END OF FYI, 21, UH, ABOUT, UH, HALF OF THE BOND WAS REMAINING.
AND AGAIN, THIS IS JUST THE SPENT
[00:20:01]
AMOUNT.THIS IS NOT INCLUDE THE ENCUMBERED AMOUNT THAT YOU SAW ON THE PREVIOUS SLIDE.
AND SO OVER THE COURSE OF THE NEXT TWO YEARS, THE IT IS PROJECTED THAT THE BOND WILL BE SUBSTANTIALLY COMPLETE, UH, WHICH IS 90%, UH, BY FYI 23.
AND YOU MIGHT SEE THAT IT ENDS THERE AT 14 MILLION AS A 14 MILLION BALANCE IN FY 23.
PART OF THAT JUST HAS TO DO WITH THE SNAPSHOT IN TIME.
SO THE SPEND PLAN EACH YEAR IS DONE DURING BUDGET DEVELOPMENT.
AND SO FOR THIS YEAR FOR FISCAL YEAR 22, THIS SPEND PLAN WAS DONE LAST SUMMER.
AND SO YOU HAVE YOUR PROJECTION BUILT IN, AND THEN THE YEAR END ACTUALS CLOSE AT THE END OF SEPTEMBER.
SO SOMETIMES THESE THINGS AREN'T QUITE FULLY ALIGNED, BUT THE EXPECTATION AND PLAN IS FOR THE, UH, FOR THE BONDS YOU'D BE SPENT DOWN IN F Y 23, WHICH IS A, WHICH WILL BE THREE YEARS OF THREE YEARS PRIOR TO, UH, THE EIGHT YEAR CONTRACT WITH THE VOTERS.
AND SO WITH THAT, I WILL, UH, HAND IT BACK OVER TO HOUSING AND PLANNING TO, UH, PROVIDE, UH, MUCH MORE INFORMATION AND CONTEXT ABOUT, UH, THE BOND AND, AND UPDATE SURROUNDING IT.
WELL, UM, I THINK IT'S, UH, A VERY GREAT, UH, GROUNDING, UH, FOR THE REST OF THIS CONVERSATION.
UH, I WOULDN'T, UH, NOW I'D LIKE TO DIG IN A LITTLE DEEPER ON SOME OF THE DETAILS.
UM, AS YOU MENTIONED, IT'S A $250 MILLION BOND ALLOCATION FROM 2018, UH, THE 2018 AFFORDABLE HOUSING BOND.
THIS IS OUR SPEND PLAN FOR THAT $250 MILLION, UH, AS PART OF THE CONTRACT OF THE VOTERS, THE 250 MILLION WAS DIVIDED INTO FOUR SEPARATE BUCKETS.
THE FIRST ONE IS A LAND ACQUISITION, UH, WHERE, UH, THE OSCAN HOUSING FINANCE CORPORATION, A, UH, AN INSTRUMENTALITY OF THE CITY OF AUSTIN, UH, ACQUIRES LAND.
AND THEN WE'LL, UH, ISSUE THAT OUT AS EITHER A REQUEST FOR PROPOSALS OR AS PART OF OUR COMMUNITY LAND TRUST.
AND I'LL GO INTO MORE OF THAT, UH, MOMENTARILY, UH, THE NEXT TWO BUCKETS THAT YOU SEE, UH, THE RENTAL HOUSING DEVELOPMENT ASSISTANCE PROGRAM AND THE OWNERSHIP HOUSING DEVELOPMENT ASSISTANCE PROGRAM, OR RHODA AND ODA.
UM, THOSE ARE, UH, UM, MANAGED ON A QUARTERLY CYCLE THROUGH APPLICATIONS, SUBMITTED BY DEVELOPERS, UH, TO PROVIDE GAP FINANCING FOR AFFORDABLE HOUSING.
AND, UH, OVER THE COURSE OF THAT FIVE-YEAR SPEND PLAN, UH, WITH ALLOCATE WE'VE BEEN ALLOCATED APPROXIMATELY $123 MILLION.
UM, THE FINAL BUCKET OF FUNDS, UH, IS PART OF OUR HOME REPAIR PROGRAM, OR, UH, GO REPAIR, UH, PROGRAMS. AND THAT'S ABOUT $28 MILLION WORTH OF FUNDS BEING ALLOCATED.
AND I'LL GO INTO ALL FOUR OF THESE BUCKETS, A LITTLE DEEPER, UM, MOMENTARILY, UH, OR RIGHT NOW TO BEGIN, UM, THEN THE LAND ACQUISITION BUCKET.
UM, BASICALLY THERE ARE THREE DIFFERENT TYPES OF ACQUISITIONS, UH, THAT THE CITY HAS PURSUED OVER THE LAST SEVERAL YEARS.
UH, THE FIRST TYPE IS JUST RAW VACANT LAND.
UM, AS YOU CAN SEE FROM THE CHART, UH, THERE HAVE BEEN, UH, A NUMBER OF ACQUISITIONS OVER THE COURSE OF THE LAST SEVERAL YEARS SPREAD ACROSS SEVEN DIFFERENT COUNCIL DISTRICTS.
UH, IF YOU, UH, HAVE YOUR CALCULATOR OUT, YOU CAN PROBABLY SEE THAT'S ABOUT 50 ACRES WORTH OF LAND, UH, THAT WE WILL THEN ISSUE OUT AS PART OF A REQUEST FOR PROPOSALS SO THAT WE CAN DEVELOP THAT WITH, UH, PARTNERS AND, UH, CREATE AFFORDABLE HOUSING OVER THE COURSE OF TIME.
UM, THE SECOND, UH, PRO TYPE PROPERTY THAT WE'VE ACQUIRED OUR HOTELS, OUR, UH, HOTEL ACQUISITION, UH, WE HAVE, UH, ACQUIRED THREE DIFFERENT HOTELS THAT WILL BE CONVERTED INTO PERMANENT SUPPORTIVE HOUSING.
UH, THESE THREE HOTELS ARE IN, UH, THREE DIFFERENT COUNCIL DISTRICTS, AND THEY ARE, UH, GOING TO SERVE APPROXIMATELY 200 AND, UH, INDIVIDUALS WHO ARE EITHER EXPERIENCING HOMELESSNESS OR ARE IN A DANGER OF EXPERIENCING HOMELESSNESS.
UH, WE EXPECT THOSE PROPERTIES TO BE ONLINE AND OCCUPIED, UH, PROBABLY WITHIN THE NEXT 12 TO 18 MONTHS.
UM, AND FINALLY, UH, THE THIRD TYPE OF PROPERTY THAT IS, UH, TO BE, UH, THAT HAS BEEN ACQUIRED IS PART OF OUR COMMUNITY LAND TRUST.
AND THESE ARE INDIVIDUALS, SINGLE FAMILY HOMES, UH, THAT WE HAVE ACQUIRED THAT, UH, WE HAVE REAL REHABILITATED AND WILL BE ISSUING OUT, UH, TO SALE A COMMUNITY LAND TRUST FUNCTIONS, A LITTLE DIFFERENTLY THAN NORMAL PROPERTY OWNERSHIP.
UH, ESSENTIALLY THE AUSTIN HOUSING FINANCE CORPORATION HOLDS THE LAND ULTA PROPERTY TO TOLLS TITLE TO THE PROPERTY, UH, THE LAND ITSELF, AND THEN THE HOMEOWNER POST TITLE TO THE STRUCTURE.
UM, IT'S A WAY TO ENSURE LONG-TERM AFFORDABILITY, UH, AND, UH,
[00:25:01]
TO, UH, PROVIDE, UH, IMMEDIATE AFFORDABILITY TO CURRENT HOMEOWNER HOMEOWNERS AND, UH, NEW PURCHASERS.I ALSO DO WANT TO MENTION THAT, UH, AT, IN THE COMING IN ABOUT THREE TO FOUR WEEKS, WE WILL BE ISSUING AN RFP, UM, FOR OUR MAINER ROAD PROPERTY, UH, AND THAT I WAS WANT TO HIGHLIGHT THAT AND LET YOU, UH, UH, KEEP AN EYE OUT FOR IT, UH, WHEN IT COMES DOWN TO THE NEXT LINE.
SO THIS GOES INTO A LITTLE BIT MORE DETAIL ON OUR COMMUNITY LAND TRUST.
UM, THE COMMUNITY LAND TRUST IS PART OF THE HFC PORTFOLIO.
UH, CURRENTLY WE HAVE 15 OCCUPIED HOMES IN THAT, UH, PORTFOLIO.
SO AGAIN, THAT IS THE HOMEOWNER OWNS THE STRUCTURE AND HFC OWNS THE DIRT BENEATH THE STRUCTURE.
UM, THERE ARE CURRENTLY 29 HOMES IN THE PIPELINE, MEANING THAT THEY ARE IN SOME, UH, STATE OF, UH, REPAIR, UH, AND WE ARE GOING TO BE SELLING THOSE HOMES THROUGH A LOTTERY THIS SPRING.
UH, WE, UH, EXPECT TO SEE OUR FIRST LOTTERY WITHIN THE NEXT TWO TO THREE MONTHS, UM, AND THEN ROLL OUT, UH, SEVERAL UNITS AT A TIME, UH, OVER THE COURSE OF THE REST OF THE YEAR.
UM, WE HAVE ACQUIRED THESE, UH, ABOUT 20 HOMES IN FOUR DIFFERENT COUNCIL DISTRICTS ACROSS THE CITY.
AND THOSE ARE NOW INCLUDED AS PART OF OUR PIPELINE, ALONG WITH THAT LOTTERY AND THE SALE OF THOSE UNITS.
WE ARE ALSO LAUNCHING OUR PREFERENCE POLICY, UH, THROUGH THE COMMUNITY LAND TRUST.
UM, THE WEBSITE THAT YOU SEE AT THE TOP OF THAT SLIDE IS, UH, GIVES MORE INFORMATION ON OUR COMMUNITY LAND TRUSTS AND, UH, PROVIDES, UH, UM, POTENTIAL PURCHASERS, UH, WITH KIND OF A TIMELINE ON WHAT THEY NEED TO DO AND HOW THEY NEED TO, UH, HOW THEY WOULD GET INVOLVED IN THAT LADDER.
WELL, THEY'RE IN THE NEXT SLIDE.
SO THE SECOND BUCKET OF FUNDS THAT I MENTIONED, UH, IS THE, OR THE FINAL BUCKET OF FUNDS THAT I MENTIONED IS THE, UH, GO REPAIR PROGRAM.
UM, OUR HOME REPAIR FOR OUR ROOMS ARE REALLY THE PRIMARY PLACE WHERE WE, UH, INVEST IN PRESERVATION.
UH, THESE ARE INDIVIDUAL HOMEOWNERS WHO NEED SOME SORT OF REPAIR TO THEIR HOME IN ORDER TO STAY THERE.
UM, IT IS A DISPLACEMENT PREVENTION PROGRAM.
IT IS A WAY TO ENSURE AFFORDABILITY FOR CURRENT RESIDENTS, UM, AND TO STABILIZE NEIGHBORS, AS YOU CAN SEE THE PICTURE, UM, IS A HOUSE THAT WAS PART OF THIS HOME REPAIR PROGRAM.
UM, SO IT IS A, UH, TARGETED TOWARDS SINGLE FAMILY, DETACHED UNITS TARGETED TOWARD, UH, UM, UH, HOMESTEADS OR INDIVIDUAL HOMEOWNERS.
UM, OVER THE COURSE OF THE LAST THREE YEARS, WE HAVE INVESTED IN IT'S AND THAT'S NOT INCLUDED OUR, UH, EMERGENCY HOME REPAIR THAT WAS ASSOCIATED WITH WINTER STORM.
YOUR, FOR THOSE FUNDS, WE WERE ABLE TO, UH, COMPLETE 124, UH, EMERGENCY HOME REPAIRS.
AND THOSE ARE UNITS THAT WERE DAMAGED EITHER FROM, UH, DAMAGED BY THE STORM, EITHER THE ROOF WAS, UH, DAMAGED OR, UH, THERE WAS A, UH, A WATER PIPE BURST, UM, SOME SORT OF REPAIR THAT NEEDED TO BE DONE SO THAT THE HOMEOWNER CAN STAY WHERE THEY LIVE.
AND THIS IS THE FINAL TWO BUCKETS OF OUR, UH, UH, GENERAL OBLIGATION BONDS.
UH, THIS IS A REVIEW OF THE LAST 10 YEARS OF OUR RENTAL HOUSING DEVELOPMENT AND OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE, INVESTMENT, I FUNDING TYPE.
SO AS YOU CAN SEE, WE HAVE DEFINITELY OVER THE LAST FIVE YEARS, ALMOST DOUBLED OUR ANNUAL ALLOCATION, PRIMARILY DUE TO THE GENERAL OBLIGATION BONDS.
UM, THOSE TOP TWO LINES, YOU SEE THE GRAY, UH, IT TAKES UP, UH, 80, AND THEN 90% OF THE, OF THE FUNDING AMOUNT AT IS THE 2018 GEO BOND OVER THE COURSE OF THE LAST 10 YEARS, UH, HFC OR AUSTIN HOUSING FINANCE CORPORATION HAS MADE MORE THAN $181 MILLION IN INVESTMENTS FOR AFFORDABLE HOUSING.
AND 75% OF THAT FUNDING CAME FROM THE GENERAL OBLIGATION BONDS, WHETHER THAT'S THE 2018 MONTHS, THE 2013 BONDS, OR EVEN AS FAR BACK AS THE 2006 BONDS, I WILL NOTE THAT IN FISCAL YEAR 2021, UH, THERE IS A, UH, SECTION OR THEY A, AN AMOUNT OF BOND.
IT WAS INVESTED FROM THE 2006 GENERAL OBLIGATION BONDS.
UH, THAT IS BECAUSE WE WERE, HAVE BEEN ABLE TO REPURPOSE THOSE.
UH, THERE WAS A REPAYMENT OF A LOAN AND, UH, WE HAVE REISSUED THOSE FUNDS TO ANOTHER HOUSING DEVELOPMENT.
UM, SO USING THE SAME DOLLAR TWICE IS, UH, ONE OF THE PRIMARY WAYS WE CAN GET OUT OF OUR AFFORDABILITY CRISIS.
FINALLY, I'D LIKE TO POINT OUT THAT, UH, THROUGH THE USE OF THESE FUNDS OVER THE LAST 10 YEARS, WE HAVE INVESTED IN OVER 5,000 INCOME RESTRICTED UNITS, AND THAT'S ACROSS BOTH PROGRAMS. UM, WE'LL GO TO THE NEXT SLIDE AND I'LL GO INTO THE TWO DIFFERENT PROGRAMS A LITTLE BIT DEEPER.
[00:30:04]
THANK YOU, B UH, SO OUR RENTAL HOUSING DEVELOPMENT ASSISTANCE AND OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE, OR RHODA AND ODA, UM, UH, ARE RESTRICTED IN A COUPLE OF WAYS.FIRST FOR OUR RHODA PROGRAM, OUR FUNDS CAN ONLY BE USED TO SUBSIDIZE, UH, UNITS THAT ARE AFFORDABLE BELOW 50% OF THE MEDIAN FAMILY INCOME.
SO YOU CAN SEE THAT THE MAJORITY OF OUR FUNDS HAVE GONE TOWARD, UM, UH, 50% UNITS.
WE HAVE ABOUT 3000 PLUS UNITS THAT ARE AFFORDABLE BELOW THAT 50% MFI CATEGORY OF THAT 3000.
THERE'S ABOUT 584 UNITS THAT ARE BELOW 30% MEDIAN FAMILY INCOME.
AND THAT'S, UH, UM, OUR DEEP, DEEP AFFORDABILITY, THE BLUE LINES ABOVE THE 50%, UH, REPRESENT INCOME OR REPRESENT UNITS THAT WE DID NOT SUBSIDIZE, BUT ARE PART OF A DEVELOPMENT THAT WAS SUBSIDIZED DUE TO THE DEEP AFFORDABILITY.
UM, SO WHILE WE DID NOT INVEST IN THOSE UNITS THEMSELVES, THEY DIDN'T BENEFIT FROM THE INVESTMENT THAT WE MADE IN THOSE DEEPER AFFORDABLE UNITS.
UH, I WOULD ALSO POINT OUT THE, UH, THE ORANGE BARS ARE, UH, FOR OUR OWNERSHIP, HOUSING OR ODA, AND THOSE ARE RESTRICTED TO 80% OF MEDIAN FAMILY INCOME AND BELOW, UH, YOU CAN SEE THAT WE'VE GOT ABOUT 486 AFFORDABLE OWNERSHIP UNITS, UH, EITHER FROM 80% OR FROM 60%.
AND, UH, WE DO EXPECT ALL OF THESE NUMBERS TO GROW, UH, VERY QUICKLY OVER THE NEXT COUPLE OF YEARS, THEN WE'LL GO TO THE NEXT SLIDE.
AND THIS IS WHAT THAT GROWTH WILL LOOK LIKE.
THE BLUE SECTION OF THESE CHARTS REPRESENT UNITS THAT ARE CURRENTLY ONLINE CURRENTLY ON, UH, ON THE GROUND AND OCCUPIED THE ORANGE SECTION.
THE CHARTS REPRESENT UNITS THAT HAVE BEEN FUNDED, HAVE BEEN APPROVED, BUT ARE NOT, UH, FULLY CONSTRUCTED AND NOT OCCUPIED AS OF YET.
SO OVER THE COURSE OF THE NEXT SEVERAL YEARS, BY THE END OF FISCAL YEAR 23, 24, WE EXPECT TO DOUBLE THE NUMBER OF UNITS, NUMBER OF RENTAL UNITS AFFORDABLE BELOW, UH, 50% OF THE MEDIAN FAMILY INCOME WITHIN THE RHD PORTFOLIO.
UH, THAT'S 15,000 UNITS IN OUR PORTFOLIO, UH, THAT ARE CURRENTLY PENDING TO, UH, TO MATCH THE 15,000 UNITS THAT ARE 1500 UNITS THAT ARE CURRENTLY ON, ON GROUND.
SIMILARLY FOR THE OWNERSHIP HOUSING PIPELINE, WE HAVE APPROXIMATELY ONE HUNDRED AND TWENTY FIVE, ONE HUNDRED AND FIFTY UNITS ON THE GROUND CURRENTLY OCCUPIED, UM, OVER THE COURSE OF THE NEXT SEVERAL YEARS, UH, WE HOPE TO SEE, OR WE PLAN TO SEE A TRIPLING OF THAT NUMBER.
UM, YOU WILL SEE THAT THE TIMELINE ON THE OWNERSHIP HOUSING IS EXTENDED OUT A LITTLE BIT FURTHER FOR TWO F Y 26, 27.
THAT IS PRIMARILY DUE TO THE TIME IT TAKES TO CONSTRUCT A SINGLE FAMILY DETACHED UNIT VERSUS THE TIME IT TAKES TO CONSTRUCT A MULTIFAMILY DEVELOPMENT.
UM, 200 UNITS ON THE RENTAL SIDE IS A LOT QUICKER THAN 200 SINGLE-FAMILY DETACH.
UH, BOTH ARE NECESSARY, BOTH ARE NEEDED, AND WE FUND BOTH.
UM, BUT THAT'S JUST THE TIMING CONSIDERATION.
AND AS HOMELESSNESS IS A PRIME, A PRIMARY CONCERN, UM, FOR THE CITY, UH, WE HAVE INVESTED IN CONTINUUM OF CARE UNITS, CONTINUUM OF CARE UNITS ARE UNITS THAT, UH, PROVIDE HOUSING FOR INDIVIDUALS WHO ARE EITHER EXPERIENCING HOMELESSNESS OR AT RISK OF EXPERIENCING HOMELESSNESS.
THESE UNITS ARE SOURCED THROUGH THE COORDINATED ASSESSMENT AS MANAGED BY ECHO, AND THEY COULD BE EITHER PERMANENT SUPPORTIVE HOUSING OR RAPID REHOUSING UNITS.
UM, THE, OBVIOUSLY WITH A PERMANENT SUPPORTIVE HOUSING, YOU WILL HAVE MUCH MORE INTENSIVE SERVICES ASSOCIATED WITH.
UM, BUT WE, UH, WE ARE EXCITED TO SAY THAT OF THE 75 UNITS THAT ARE CURRENTLY AVAILABLE, UH, WITHIN OUR PORTFOLIO, WE EXPECT TO SEE A TRIPLING OF THAT, UH, BY THE END OF FISCAL YEAR 23, 24 TO MORE THAN 250 PERMANENT SUPPORTIVE OR RAPID REHOUSING UNITS ORDINATED THROUGH THE CONTINUUM OF CARE.
I WILL ALSO NOTE THAT THIS IS NOT THE ONLY SOURCE OF, UH, HOUSING FOR THE HOMELESSNESS.
UH, THIS DOES NOT INCLUDE ANY, UH, LANDLORD NEGOTIATION OR OUTREACH THAT, UH, THAT ECHO CONDUCTS.
UM, THIS IS ONLY ONE PART OF THE VERY LARGE GOAL OF 3000 UNITS, BUT WE ARE, UH, AN IMPORTANT PART.
AND FINALLY, I JUST WANT TO HIGHLIGHT TWO, UH, UM, DEVELOPMENTS THAT WE'VE INVESTED THE GENERAL OBLIGATION BONDS.
AND IN THE PAST, UH, FIRST I'D LIKE TO TALK ABOUT RS SPARROW AT RUTLAND, WHICH IS AN HFC PARTNERSHIP WITH CARITAS OF AUSTIN AND THE CASINO GROUP.
UM, THIS IS 171 UNIT DEVELOPMENT.
[00:35:01]
UH, IT IS 100% AFFORDABLE SET, 100, AND ONE OF THOSE UNITS ARE DEDICATED TO THE CONTINUUM OF CARE.SO OF THAT, A LARGE BLOCK IN THE PREVIOUS SLIDE THAT LARGE ORANGE BLOCK, THIS REPRESENTS 101 OF THEM, WE ARE LOOKING FORWARD TO SEEING THIS, UH, FULLY CONSTRUCTED AND OCCUPIED SOMETIME IN THE FALL OF 2022.
UH, THIS IS GOING TO BE A GREAT DEVELOPMENT, NOT ONLY FOR OUR PARTNERS, BUT FOR THE COMMUNITY, UH, TO SERVE, UH, 171 DEEP AFFORDABLE UNITS AND, UH, REALLY PROVIDE SERVICES FOR OVER A HUNDRED INDIVIDUALS WHO ARE EXPERIENCING HOMELESSNESS.
WE'RE VERY EXCITED ABOUT THIS PROPERTY AND, UH, WE'RE VERY EXCITED TO SEE IT ON THE GROUND NEXT, UH, THE NEWEST, UH, PARTNERSHIP THAT SHOULD BE DEVELOPED OR THAT IS BEING DEVELOPED RIGHT NOW IS VIKA LENA.
THIS IS A PARTNERSHIP BETWEEN HFC, UM, AND OUR PARTNER O S A IT'S AT THE INTERSECTION OF OF, UH, OLTORF AND PLEASANT VALLEY.
IT'S ALSO 170 UNITS AND 71 OF THOSE UNITS ARE AFFORDABLE BELOW 50% MEDIAN FAMILY INCOME.
THE OTHER 100 UNITS ARE ALSO AFFORDABLE, UM, BUT THEY ARE AFFORDABLE BELOW, UH, 60% AND 80% OF THE 170 UNITS.
THERE ARE 81, 2 BEDROOM UNITS AND 41 TO THREE BEDROOM UNITS THEY'RE CURRENTLY LEASING RIGHT NOW.
UM, THIS IS A VERY EXCITING PARTNERSHIP, UH, WITH OSBA, UH, AND WE ARE VERY EXCITED TO SEE THIS, UH, PROPERTY OCCUPIED IS WITHIN A QUARTER MILE OF THE PROPOSED PURPLE LINE STOP.
UM, AND IT, UH, AS I MENTIONED, IT'S LEASING RIGHT NOW.
AND THEN THE NEXT LINE, FINALLY, JUST TO HIGHLIGHT A FEW UPCOMING HIGHLIGHTS AGAIN, OUR COMMUNITY LAND TRUST LOTTERY WILL BEGIN IN THE NEXT SEVERAL MONTHS.
UM, WE HAVE ALSO STARTED TO DEPLOY OUR PROJECT CONNECT ANTI-DISPLACEMENT COMMUNITY ACQUISITION PROGRAM, UH, WHICH IS A SMALL, UH, SMALL SITE ACQUISITION BEFORE, UH, LOCAL NONPROFITS AND OF THE THREE HOTELS THAT WE, UH, THAT WE MENTIONED AS PART OF OUR LAND ACQUISITION PROGRAM.
UH, THE CONVERSION OF THOSE INTO PERMANENT SUPPORTIVE HOUSING IS CURRENTLY UNDERWAY, AND WE DO EXPECT TO SEE THEM OCCUPIED WITHIN THE NEXT 12 TO 18 MONTHS.
AND I WOULD BE HAPPY TO ANSWER ANY QUESTIONS.
ANY QUESTIONS? THANKS SO MUCH.
UM, WHAT JUST REAL QUICK, UH, COMMISSIONER JOHANNE, YOU HAVE A QUESTION.
UH, THANKS SO MUCH FOR YOUR TIME HERE.
UH, JAMIE REALLY APPRECIATE YOU WALKING US THROUGH THAT ENTIRE PRESENTATION.
UM, YOU IDENTIFIED AS SPRING 20 TO 2022 LOTTERY.
UM, AND I WAS JUST CURIOUS HOW EXACTLY THAT HOUSING LOTTERY WORKED, WHO WAS ELIGIBLE FOR IT, THAT SORT OF THING.
SO THE ELIGIBILITY WE'LL GO THROUGH OUR PREFERENCE POLICY.
UM, IF YOU'RE FAMILIAR WITH OUR PREFERENCE POLICY IT'S, UH, UM, INDIVIDUALS WITH, UH, TIES TO, UH, AREAS HISTORICAL TIES, UM, EITHER THEY HAVE, UH, BEEN RELOCATED DUE TO, UH, UH, IN AFFORDABILITY OF THEIR CURRENT OTHER CURRENT HOME, UM, OR THEY HAVE GENERATIONAL TIES GOING BACK TO THEIR PARENTS OR GRANDPARENTS, UM, IN ORDER TO, UH, THE LOTTERY ITSELF WILL BE CONDUCTED.
UM, UH, WELL, WE'LL HAVE ONE HOME SOLD ON THE FIRST TRY, SO WE'RE, UH, UH, WE'RE TAKING IT'S A LITTLE SLOWER TO MAKE SURE WE GET IT RIGHT.
UM, BUT WE WILL ISSUE, UH, THE SALE OF THE FIRST HOME IN THE SPRING, UM, AND THEN WORK THROUGH ANY HICCUPS THAT, UH, CAME ABOUT AND MAKE SURE THAT WE CAN, UH, UM, SUCCESSFULLY MANAGE THAT LOTTERY FOR ALL FUTURE SALES.
I THINK WE'RE, UH, TARGETING TWO TO FIVE SALES IN ANY FUTURE LOTTERIES.
UM, BUT THE FIRST ONE IS JUST GOING TO BE THE ONE.
I HAVE A FEW MORE QUESTIONS, BUT I'LL DEFER TO THE REST OF THE COUNCIL MEMBERS.
YEAH, ACTUALLY I HAVE A COUPLE OF QUESTIONS.
UM, ONE IS THAT, UH, YOU KNOW, UM, IF, IF, IF THIS IS A REALLY LOW INCOME HOUSING, HOW MUCH DOWN PAYMENT DO YOU KNOW, WHAT IS THE FINANCIAL FORMULA THAT YOU USE? YOU KNOW, HOW MUCH DOWN PAYMENT, WHAT INTEREST RATE, ET CETERA, BECAUSE IF YOU'RE SELLING THE HOUSES, YOU'RE SELLING IT TO PEOPLE WHO ARE BELOW THE MEDIAN INCOME IF I HEARD YOU CORRECTLY.
SO WHAT ARE THE FINANCIAL STRUCTURE? AND SECONDLY, AS PART OF A DOWN PAYMENT, DO YOU HAVE SIMILAR MODEL THAT, UH, THAT, THAT HABITAT FOR HUMANITY AS WHERE IT IS SPREAD PRETTY, THAT IS THE DOWN PAYMENT.
SO DO YOU HAVE A MODEL LIKE THAT? HOW FLEXIBLE IS THAT? RIGHT? UM, SO, UH, TO ANSWER BOTH QUESTIONS, UH, FIRST FOR THE COMMUNITY LAND TRUST, UH, ONE OF THE, ONE OF THE ADVANTAGES
[00:40:01]
OF THAT MODEL IS THAT IT TAKES THE LAND OUT OF THE CONSIDERATION FOR ANY MORTGAGE.SO AS THE HOMEOWNER ONLY OWNS THE LAND, THEY DON'T HAVE TO PAY THE VALUE OF THE DIRT.
UM, UH, SO THAT KIND OF, THAT, UH, CREATES A STRUCTURE SO THAT THAT HOUSE IS MORE AFFORDABLE GOING FORWARD.
NOW, OF COURSE, ANY INDIVIDUAL WHO SECURES A MORTGAGE DOES HAVE TO SECURE THAT MORTGAGE.
THEY HAVE TO BE, UH, BE MORTGAGE READY.
THEY HAVE TO HAVE GOOD CREDIT.
UM, SO WE'RE GOING TO RELY ON, ON THE HOME PURCHASER, UH, TO, TO ENSURE THAT THEY HAVE ALL OF THOSE NECESSARY RESOURCES, UM, AS FAR AS OUR OWNERSHIP HOUSING DEVELOPMENT ASSISTANCE PROGRAM, UM, THAT'S PART OF THE REASON WHY IT'S CAPPED AT 80% SO THAT WE CAN HAVE OUR, OUR AFFORDABILITY.
UM, AND I MENTIONED THAT WE HAVE A FEW 60% MEDIAN FAMILY INCOME, UH, HOMES THAT HAVE, THAT WILL HAVE BEEN SOLD OR EITHER HAVE BEEN SOLD.
UM, UH, ONE OF THE CHALLENGES WITH EVEN DEEPER AFFORDABILITY IS THAT MORTGAGE READINESS, UH, HAVING, HAVING AN INCOME TO PAY EVEN A, A LOW INTEREST MORTGAGE, UM, HAVING CREDIT TO QUALIFY FOR A LOW-INTEREST MORTGAGE, UH, THOSE ARE CHALLENGES THAT, THAT THESE PROGRAMS DON'T SOLVE FOR, UM, THE SOLVE FROM THESE PROGRAMS IS REALLY CREATING THAT, OR, UH, CREATING THAT LOWER PRINCIPLE, THAT LOWER TOTAL AMOUNT FOR THE PURCHASE PRICE.
UM, UH, WE WOULD LIKE TO GO DEEPER FOR DEEPER AFFORDABILITY ON OWNERSHIP AS DOWN TO 30%, BUT AT THAT POINT, YOU'RE LOOKING FOR UNICORNS WHO, UH, UH, WHO CAN BE MORTGAGE READY AND ARE BELOW THAT MEDIAN FAMILY INCOME.
UM, IT'D BE VERY, VERY DIFFICULT TO FIND THEM.
UM, CAN YOU, UH, CAN YOU ASK YOUR SECOND QUESTION AGAIN, PLEASE? AND THEN THE QUESTION WAS, YOU KNOW, YOU KNOW, IF YOU'RE, IF YOU'RE GOING TO BE BUYING HOUSES A DOWN PAYMENT, YOU CAN FOLLOW, I DON'T THINK THE BANK WOULD ALLOW YOU ZERO, BUT HUMANITY HAS A MODEL WHERE SWEAT EQUITY IS CONSIDERED THE DOWN PAYMENT.
YOU WORK ON A HOT SERIES OF HOUSES, YOU CAN COLLECT CREDITS, AND THEN THOSE CREDITS, UH, YOU KNOW, AMOUNT TO YOUR DOWN PAYMENT.
AND THEN YOU TAKE OVER THE HOUSE NEXT TIME.
SO DO YOU HAVE SIMILAR MODEL WHEREBY SPREAD IT? SO WE DO NOT HAVE HE, WE DID NOT HAVE A SWEAT EQUITY MODEL FOR OUR DOWN PAYMENT ASSISTANCE PROGRAM.
WE DO HAVE A DOWN PAYMENT ASSISTANCE PROGRAM, BUT, UH, WE PLACED A LIEN AGAINST THE HOME, UM, FOR ANY PARTICIPANT OF THAT DOWN PAYMENT ASSISTANCE PROGRAM.
UH, ONE OF THE, I GUESS, ONE OF THE DIFFERENCES BETWEEN HABITAT AND US, UH, UM, HABITAT HAS THE ABILITY TO DO THAT SWEAT EQUITY PROGRAM, BECAUSE THEY ARE ACTUALLY BUILDING HOUSES.
UM, THE MAJORITY OF OUR WORK, UH, WE HELP PEOPLE HELP FUND, UH, CONSTRUCTION, BUT, UM, YOU DON'T WANT THESE SWINGING A HAMMER.
UM, IT'S, UH, UH, IT'S A DIFFERENT SKILLSET, UM, AND HABITAT DOES A GREAT JOB, BUT OUR PROGRAM, OUR DOWN PAYMENT ASSISTANCE REALLY RELIES ON THAT LEAN.
UM, MR. RICE, I'M NOT SURE I UNDERSTOOD WHAT YOU SAID JUST NOW, IS THE MORTGAGE ON THE LAND OR IS THE MORTGAGE ON THE, THE STRUCTURE? AND THEN I HAVE ANOTHER QUESTION.
SO FOR COMMUNITY LAND TRUST, UM, THE LAND IS HELD IN TRUST BY THE AUSTIN HOUSING FINANCE CORPORATION, LAND TRUST, UM, AND THAT'S FOR ALL OF THE UNITS IN OUR PORTFOLIO, UM, THE HOMEOWNER WOULD PURCHASE THE STICKS, THE BUILDING ITSELF, UM, AND THEY WOULD TAKE OUT A MORTGAGE ON THAT.
AND THEN MY OTHER QUESTION IS, UM, CAN YOU QUICKLY WALK US THROUGH WHO, UM, BASICALLY FEEDS THE, UM, THE CLIENTS FOR THE SUPPORTIVE HOUSING AND THEN FOR THE, UM, THE PROGRAMS THAT YOU HAVE PARTNERS, LIKE YOU MENTIONED, THE PARTNERS OF CARITAS.
SO DOES THAT MEAN THAT THEY KIND OF FEED AND BRING THE CLIENTS OUT? CAN YOU KIND OF SPEAK TO THE RELATIONSHIP BETWEEN THE PARTNERSHIPS AND WHETHER THEY IDENTIFY THE CLIENTS, OR DOES THE CITY OF AUSTIN IDENTIFIES THE CLIENTS? SO OUR, OUR PARTNERS, UH, IN, IN THE, A SPARROW AND RUTLAND CASE, UH, SPECIFICALLY, UM, KERATITIS THOMAS IS IDENTIFYING THE PARTY, UH, THE CLIENTS, UM, FOR 101 OF THOSE UNITS, UH, I THINK THAT'S THE RIGHT NUMBER, UH, FOR 101 OF THOSE UNITS, THEY ARE ACTUALLY SOURCING THAT THROUGH THE COORDINATED ASSESSMENT THROUGH ECHO, UH, AND, UH, THAT IS OUR, THE, THE INTENTION IS TO PROVIDE HOUSING FOR THE, FOR THE MOST DIFFICULT TO SERVE, UH, INDIVIDUALS WITH MULTIPLE COMORBIDITIES.
UM, THE, BUT FOR ALL OF OUR PERMANENT SUPPORTIVE HOUSING, AS WELL AS ALL OF OUR AFFORDABLE HOUSING,
[00:45:01]
WE RELY ON THE PROPERTY MANAGEMENT, UM, AND SERVICE MANAGERS WHO PROVIDE TO, UH, UH, IDENTIFY CLIENTS WHO WILL RESIGN.UH, WE WILL VERIFY THAT THE RESIDENTS, UH, MEET ALL OF THEIR REQUIREMENTS AS PER OUR LOAN, UH, SO THAT THEY ARE INCOME CERTIFIED OR INCOME QUALIFIED.
UM, AND IF IT IS A PERMANENT SUPPORTIVE HOUSING, UH, UNIT SOURCED THROUGH THE COORDINATED ASSESSMENT, THEN THEY ARE ACTUALLY SOURCED THROUGH THE COORDINATED ASSESSMENT.
WE'LL VERIFY THAT THROUGH ECHO.
UM, BUT WE DO RELY ON THE PROPERTY MANAGERS AND THE SERVICE PROVIDERS TO, UH, TO IDENTIFY AND TO SERVE THE CLIENTS.
SO, UM, IF I UNDERSTOOD WHAT YOU SAID, WHEN YOU HAVE A PARTNER, THEY ARE RESPONSIBLE FOR HELPING TO FIND QUALIFIED CLIENTS THROUGH THE COORDINATED ASSESSMENT PROCESS, UM, WORKING WITH ECHO THROUGH THE COORDINATED ASSESSMENT.
AND SO, IN THE CASE OF THE S UH, SPIRO AT RUTLAND, YOU SAID 101 UNITS WERE THROUGH ECHO AND THERE'S 171 UNITS.
SO DOES THAT MEAN THAT THE REST OF THE UNITS ARE KIND OF OPEN TO THE PUBLIC? UM, NO, ACTUALLY.
AND THAT'S WHY, UH, THAT'S PART OF THE BEAUTY OF THAT PARTNERSHIP ITSELF.
UH, CARROT TOSS, UH, WHILE THEY DO SERVE, UH, HOMELESSNESS, THEY ALSO HAVE THEIR OWN LIST.
THEY HAVE THEIR OWN, UH, CLIENT BASE.
SO THE 70 UNITS, UH, MAY NOT BE PART OF THE COORDINATED ASSESSMENT, UM, BUT THEY WOULD BE THROUGH A KERATOSIS ORGANIZATION, I THINK.
I'VE GOT A QUESTION JUST REAL QUICK ABOUT THE HOTELS.
UM, SO CURRENTLY THOSE ARE NOT BEING UTILIZED TODAY, AS FAR AS MEANING THEY'RE NOT SET UP AND READY TO GO JUST QUITE YET.
WE ARE WORKING THROUGH SOME, UH, UM, WE WERE WORKING WITH HACA TO IDENTIFY, UH, AREAS WHERE WE COULD SECURE SOME VOUCHERS OR A HOUSING CHOICE VOUCHER, UH, FOR THE PROPERTIES.
WE ALSO NEED TO DO SOME SIGNIFICANT REHABILITATION ON A FEW OF THE UNITS, UH, TO CONVERT THEM INTO, UH, HOUSING UNITS, AS OPPOSED TO HOTEL UNITS.
UH, SO ADDING IN KITCHENETTES, UM, EXPANDING, UH, SPENDING A FEW OF THE, OF THE INTERIOR ASPECTS OF EACH UNIT, UM, WE ARE ON TRACK.
UM, I DON'T WANT TO GIVE DATES BECAUSE THEN I'LL BE WRONG.
UH, BUT I DO THINK THAT, UH, WE'LL BE ABLE TO GET THE FIRST, UH, HOTEL, UH, UH, FULLY CONVERTED TO A PERMANENT SUPPORTIVE HOUSING BY I'D SAY EARLY FALL WOULD BE THE, A GOOD TARGET.
AND ARE, ARE THOSE BEING MANAGED BY THE CITY OR, OR DOES THE CITY CONTRACT OUT WITH, UH, YOU KNOW, A PRIVATE FIRM THAT KNOWS WHAT THEY'RE DOING AS FAR AS HOTELS OR THAT SORT OF MULTI HOME TYPE OF, AND RIGHT.
UM, SO WE ARE, WE ARE COORDINATING WITH, OR, UH, YES, WE ARE WORKING WITH, UH, SERVICE PROVIDERS AND, UH, UM, ISSUING PROPERTY MANAGEMENT CONTRACTS AND REHABILITATION CONTRACTS, UH, TO, UH, THOSE INDIVIDUALS, THE CITY IS NOT GOING TO MANAGE THE PROPERTY.
UM, OUR MAIN INVESTMENT IS OWNING AND ACTUALLY AUSTIN HOUSING FINANCE CORPORATION WILL OWN THE PROPERTY.
UM, OUR MAIN, UH, UM, REASON FOR BEING INVOLVED IS, UH, TO LOWER THE COST OF OPERATIONS, UH, BY, UH, SECURING THE TAX ABATEMENT.
AND SO HOW DOES THE ANNUAL OPEX GET COVERED OUT OF WHICH BUDGET IS THAT, IS THAT BEING MANAGED OUT OF? SO THAT'S SOMETHING THAT WE'RE ACTUALLY WORKING THROUGH IN TERMS OF OUR PRO UH, UH, UH, PROPERTY MANAGEMENT CONTRACTS, THE, UH, UM, MAKING SURE THAT WE HAVE ADEQUATE FUNDS FOR ANY REPLACEMENT RESERVE, UM, OR, UH, ANY OPERATING BUDGET SINCE THE MAJORITY OF THESE ARE, SINCE THESE HOTELS ARE GOING TO BE SECURED, UH, WITH, UH, UH, HOUSING CHOICE VOUCHERS, UM, OR, UH, SUPPLEMENTED BY OUR LOCAL HOUSING VOUCHER PROGRAM, WHICH IS FUNDED THROUGH THE HOUSING, UH, TRUST FUND.
UM, WE EXPECT THE BALANCE, THE EACH INDIVIDUAL BUDGET TO BALANCE.
UM, BUT OBVIOUSLY IF SOMETHING HAPPENS, UM, UH, WE WILL HAVE TO WORK THROUGH HOW TO MAKE SURE THAT THESE FACILITIES ARE NOT ALWAYS HEALTHY, BUT ARE SUSTAINABLE FOR THE LONG-TERM.
UM, I WAS WONDERING, SO THESE DO THESE FAMILIES THAT OWN THE STRUCTURE, BUT NOT THE LAND WHEN THEY MOVE INTO ALL THESE STRUCTURES, HOW DOES THAT WORK? WHAT THEIR MORTGAGE IS, HOW DO THEY SELL THE STRUCTURE AND ONCE THEY'RE DONE.
UM, SO WE'VE, WE'VE WORKED WITH, UH, UH, LENDERS IN THE PAST, UM, AND, UH, THE COMMUNITY LAND TRUST IS IT'S NOT ONLY, UH, A FAMILIAR, UH, CONCEPT
[00:50:01]
FOR MANY LENDERS.IT'S ALSO FAMILIAR IN THE CITY OF AUSTIN.
UM, GUADALUPE NEIGHBORHOOD DEVELOPMENT CORPORATION HAS A COMMUNITY LAND TRUST, UM, WHERE UNITS ARE, UH, UH, PURCHASED, SOLD.
UM, SO IT'S, IT, IT TAKES, IT'S NOT AS, UH, UM, STANDARD AS THE NORMAL PROCEDURE, BUT IT'S SOMETHING THAT, UH, ALL PARTIES ARE FAMILIAR WITH.
SO, UM, WHEN I SEE THAT YOU HAVE PROGRAMS RELATED TO BOTH RENTAL ASSISTANCE AND OWNERSHIP ASSISTANCE AS WELL, HOW DO YOU THINK ABOUT THE RELATIVE RESOURCES THAT SHOULD BE DEDICATED TO EACH OF THOSE? UM, UM, CAN YOU, UH, CAN YOU EXPLAIN THE QUESTION A LITTLE BIT? YEAH, I GUESS I'M SAYING THAT, YOU KNOW, HOW DO YOU DECIDE HOW MUCH OF YOUR RESOURCES SHOULD GO TO SUPPORTING OWNERSHIP VERSUS RENTAL IN THE MARKET? GOTCHA.
UM, SO THE 2018, UH, GENERAL OBLIGATION BONDS, UH, IDENTIFIED THOSE, THOSE AMOUNTS FOR US.
SO AS PART OF THE CONTRACT WITH THE VOTERS, WE ARE ALLOCATING 94 MILLION, UH, FROM THAT 250 MILLION TO RENTAL, AND THEN THE OTHER 26, 20 8 MILLION TO, UH, UM, TO OWNERSHIP, UM, OUTSIDE OF THE GENERAL OBLIGATION BONDS.
UM, I, I WILL SAY THAT A LOT OF THE DECISIONS IN TERMS OF HOW MUCH NEEDS TO GO, WHERE IS DRIVEN BY THE APPLICATION PROCESS, WE RELY ON DEVELOPERS TO BRING APPLICATIONS TO US.
UM, AND, UH, THEN WE NEGOTIATE WHAT THE LEVEL OF INVESTMENT WOULD BE, UM, AND TRY TO GET, UH, HOUSING BUILT THROUGHOUT THE CITY, UH, REGARDLESS, UH, AT ALL AT ALL, UH, INCOME LOANS GOT COMMISSIONER DESK SCRIPTED, UM, RELATED TO THIS QUESTION ABOUT THE DISTRIBUTION BETWEEN RENTAL AND OWNERSHIP, UH, HOW DID THEY MATCH UP WITH THE DEMAND? I KNOW THAT IS VERY, YOU KNOW, DEMAND OF COURSE IS VERY VARIABLE FROM YEAR TO YEAR, BUT HOW DOES IT GENERALLY MATCH UP? DO YOU GET, IS THERE TOO MUCH FUNDS HERE AND TOO LITTLE THERE, WHAT'S YOUR EXPERIENCE YEAR TO YEAR? UM, I, I WOULD BE HARD PRESSED TO HEAR ANYONE SAY WE DON'T, WE HAVE TOO MUCH MONEY.
UH, SO RIGHT NOW WE HAVE, UH, UH, OUR, OUR RENTAL HOUSING DEVELOPMENT ASSISTANCE FUND IS ABOUT $30 MILLION REMAINING.
UM, AND THAT'S FOR THE NEXT TWO YEARS FOR THIS FISCAL YEAR INDEX, UM, OUR OWNERSHIP HOUSING, UH, WE HAVE DEPLOYED THOSE FUNDS A LOT MORE RAPIDLY.
WE ONLY HAVE ABOUT 2 MILLION REMAINING IN THAT.
UH, BUT AGAIN, OWNERSHIP DOES TAKE LONGER TO BUILD.
UH, SO, UM, I, IF YOU WERE TO ASK ME WHICH ONE NEEDS MORE MONEY NOW, I'D SAY THEY BOTH, UH, UM, CHOOSE WHICH OF MY CHILDREN TO LOVE MORE.
THANK YOU, MR. MAY, DO YOU HAVE ANY INFORMATION ON HOW QUICKLY THESE ROTATE THROUGH, IN OTHER WORDS, IN THE HOTEL SCENARIO, WHAT IS THE EXPECTED LENGTH OF STAY OF THOSE INDIVIDUALLY, THOSE INDIVIDUALS, AND THEN FOR THE APARTMENTS ARE, HOW OFTEN DO THEY GET TURNED OVER? BECAUSE I'M ASSUMING THAT WHEN PEOPLE CAN MOVE OUT, THEY CAN MOVE INTO A, UH, A MARKET SPACE INSTEAD OF A CITY SUBSIDIZED SPACE.
RIGHT? AND THAT'S, THAT'S A VERY GOOD QUESTION, BUT IT'S ONE OF THE, UM, ONE OF THE THINGS THAT WE ARE, WE ARE FOCUSED ON STUDYING IS, UH, ARE WE DOING A JOB? ARE WE, ARE WE ACTUALLY ACCOMPLISHING SOMETHING? UM, BECAUSE THE INTENT OF THE, OF THE 50% MEDIAN FAMILY INCOME, UH, RENTAL UNIT IS TO GIVE SOMEONE BREATHING ROOM SO THAT THEY CAN, UH, SO THAT THEY CAN GROW THEIR INCOME OR INVEST THEIR RESOURCES ELSEWHERE.
UM, UH, UNFORTUNATELY WE DON'T HAVE ANY CLEAR AUSTIN SPECIFIC METRICS.
WE KNOW THAT THE PROGRAMS DO, UH, UH, PROVIDE LONGTERM AFFORDABILITY AND THEY DO PROVIDE A BENEFIT FOR THE COMMUNITY AS A WHOLE, UM, SPEAKING FOR THE HOTELS, UH, SPECIFICALLY, UH, THOSE ARE PERMANENT SUPPORTIVE HOUSING UNITS.
SO, UH, THE, I WOULD, THE IDEA WOULD BE THAT THERE IS NO TIME LIMIT.
UM, AND WHEN WE'RE PULLING FROM THE COORDINATED ASSESSMENT, UH, AS PART OF THE CONTINUUM OF CARE, UM, THE, THOSE ARE INDIVIDUALS THAT ARE, THAT NEED ADDITIONAL SERVICES.
UM, SOMETIMES THOSE SERVICES, UH, ARE, UH, TRANSITORY.
SOMETIMES THEY ARE PERMANENT, UH, UH, WHETHER IT'S, UH, UM, CHEMICAL DEPENDENCY OR MENTAL HEALTH, UM,
[00:55:01]
UH, BUT THOSE ARE THE TYPES OF SERVICES THAT WOULD BE PROVIDED AND NECESSARY FOR INDIVIDUALS, NOT EVERY INDIVIDUAL NEEDS THOSE SERVICES.UM, SO YOU COULD SEE SOME CHURN IN, UH, IN THE UNITS, BUT WHEN DEALING WITH COORDINATING WITH THE CONTINUUM OF CARE, THEN, UH, THE REAL TURNOVER TAKES PLACE ON THE RAPID REHOUSING SIDE IS THAT AS TIME LIMITED AND TARGETED TO INDIVIDUALS WHO ARE IMMEDIATELY EXPERIENCING HOMELESSNESS OR IMMEDIATELY AT RISK, AND JUST NEEDED SOME SUPPORT IN ORDER TO TURN THINGS AROUND.
ANY OTHER QUESTIONS? COMMENTS? YES, I DO HAVE ONE MORE.
UM, FOLLOWING UP, WHAT I ASKED ABOUT EARLIER WITH THE STRUCTURE IS BEING SOLD.
SO IF A FAMILY MOVES, I'M THINKING LAND APPRECIATES OVER TIME, DO THE STRUCTURES APPRECIATE IN THE SAME WAY THE LAND DOES SO THAT THE PEOPLE WHO ARE IN THESE HOUSES CAN GAIN EQUITY WHEN THEY MOVED TO THE NEXT HOME, WHEREVER IT BE.
UM, SO WE DO HAVE A SET EQUITY, UH, UM, RETURN FOR ALL OF OUR OWNERSHIP, HOUSING PRODUCTS.
UH, HOWEVER I DO THERE, THERE IS ONE, UH, CAUTION THAT, UH, UM, I TRY TO MAKE CLEAR AS, AS OFTEN AS POSSIBLE, UM, ARE ANY OF OUR PRODUCTS, UH, WHETHER IT'S RENTAL HOUSING OR OWNERSHIP, HOUSING THAT ARE INCOME RESTRICTED ARE, UH, ARE A, NOT A, THEY'RE NOT DESIGNED AS WEALTH GENERATOR, THEY ARE, UH, STABILIZING TECHNIQUES, SO THAT WEALTH CAN BE GENERATED ELSEWHERE.
UM, SO THAT YOU'RE NOT SPENDING ALL OF YOUR FUNDS ON HOUSING OR TAXES OR, UM, UH, UTILITY PAYMENTS, THINGS LIKE THAT.
UH, YOU CAN THEN TAKE THAT REVENUE THAT WOULD OTHERWISE HAVE GONE TO RENT AND INVESTED IN YOURSELF OR, UH, UM, IN, UH, SOME OTHER, UH, RETURN MODEL.
SO, UH, WHILE WE DO HAVE, UM, A, UH, AN EQUITY RETURN FOR ANY RESALE OF A, UH, INCOME RESTRICTED OWNERSHIP UNIT, UM, IT'S DEFINITELY NOT MARKET RETURN, AND IT'S DEFINITELY NOT, UH, ENOUGH TO, TO WALK AWAY, UM, TO THE, TO THE BAHAMAS.
UH, BUT IT DOES GIVE, UH, AT LEAST, UH, A NOMINAL RETURN, UH, BASED ON YOUR INVESTMENTS.
THANK YOU SO MUCH, MISS YOUR URINE.
YEAH, I HAVE ONE LAST QUESTION.
THANKS SO MUCH FOR PATIENTS HERE.
UM, YOU USE THE PHRASE USING THE SAME DOLLAR TWICE TO GET OUT OF OUR AFFORDABLE HOUSING CRISIS.
COULD YOU RE-EXPLAIN THAT CONCEPT? SURE.
SO, UM, THE 2006 BOND IN, IN THE TABLE WHERE IT SHOWED ALL OF THE INVESTMENTS PER YEAR, WE HAD ONE INVESTMENT, UH, FOR USING THE 2006 GENERAL OBLIGATION BONDS, UM, THAT, UH, OCCURRED IN 2011.
UH, LET'S SAY, UM, AND THEN 10 YEARS LATER, UH, THE OWNER REFINANCED, UM, AND AS PART OF THAT REFINANCE, UH, WE WERE ABLE TO SECURE A REPAYMENT OF OUR LOOK, UM, BECAUSE IT WAS, IT, IT PENCILS BETTER.
UM, SO AS WE CAN, UH, RECLAIMED SOME OF OUR LOANS, EITHER THROUGH, UH, REPAYMENT PROVISIONS IN THE LAW ITSELF, OR THROUGH A REFINANCE, A CASH OUT REFINANCE, UM, UH, SOME WAY WHERE WE KNOW THAT THE PROPERTY WILL REMAIN, UH, STABLE, UH, BUT OUR LOAN CAN BE REPAID OR RECLAIM.
UM, THEN WE CAN REUSE THOSE DOLLARS AND INVEST IN MORE HOUSING THROUGHOUT THE CITY.
ARE YOU REQUIRED TO USE THAT MONEY FOR THAT SAME PURPOSE, UM, FOR, FOR GO AHEAD.
AND THAT SPECIFIC, UH, EXAMPLE OF THE 2006, A GENERAL OBLIGATION BOND, I BELIEVE IT WAS REQUIRED TO BE USED FOR AFFORDABLE HOUSING.
SO WE DID, UM, IF WE WERE TO GET ANY OF THE 2018 GENERAL OBLIGATION BOND REPAID, UH, I BELIEVE WE WOULD STILL KEEP IT TO THE SAME BUCKET, UM, WHETHER IT'S RHD OR LHD.
I THINK THOSE ARE THE ONLY TWO BUCKETS THAT WOULD, WOULD THEORETICALLY TO BE REPAID.
DASGUPTA UM, SO THE SAME QUESTION AGAIN.
SO THIS WHOLE SYSTEM WORKS BECAUSE YOU REPEAT EARLY, SO THEREFORE WE HAVE TO BE OUT OF LESS MONEY.
SO YOU RECOVERED SOME MONEY THAT WE WOULD HAVE OTHERWISE PAID OFF.
SO WHAT'S THE MECHANICS WHEN YOU RECOVER.
OH, SO, UM, IN GENERALLY OUR, OUR, OUR LOANS ARE DEFERRED FOR GIMBAL.
SO, UH, WE'LL MAKE A, WE'LL MAKE A LOAN, LET'S SAY A $2 MILLION LOAN FOR 40 YEARS, UM, OF AFFORDABILITY.
UH, YOU STAY WITHIN THAT AFFORDABILITY PERIOD AND YOU, YOU MEET ALL THE OBLIGATIONS, THEN WE WILL FORGIVE THE LOAN.
[01:00:01]
UH, A, A LOAN, UH, CAN BE REFINANCED SO THAT THE PROPERTY CAN CASH OUT, TAKE AWAY SOME OF THE EQUITY, UM, AS LONG AS THEY ARE RETURNING THAT EQUITY BACK INTO THE PROPERTY.AND WE'RE NOT GONNA, WE'RE NOT GONNA BE INVOLVED, BUT IF THEY ARE CASHING OUT TAKING SOME OF THAT EQUITY AND PUTTING IT IN THEIR POCKET, THEN WE'LL SAY THAT'S LOVELY.
AND I'M SO GLAD YOU WERE ABLE TO DO THAT.
NOW, CAN YOU REPAY SOME OF YOUR LOANS, UM, BECAUSE WE DO NEED TO RECYCLE THESE SPOTS.
UM, WE NEED TO MAKE SURE THAT WE'RE BUILDING AS MANY UNITS AS POSSIBLE.
AND, UM, WE'LL TALK TO YOU LATER.
ONTO ITEM NUMBER FOUR, DISCUSSION
[4.a. Discussion and possible action on the adoption of the 2022 work plan]
AND POSSIBLE ACTION ON THE ADOPTION OF THE 2022 WORK PLAN, THERE IS A HANDOUT INCLUDED ATTACHMENT AS WELL.UM, SO LAST MEETING, WE ESTABLISH THE ACTUAL DATES, UM, AS THEY PERTAIN TO, UH, OUR MEETING TIMES.
AND, UM, WELL, I ASSUME YOU, YOU KNOW, YOU WENT THROUGH AND KINDA, WE KIND OF WENT THROUGH AND MIRRORED WHAT WE, WE DID PRIOR YEARS AND JUST, JUST TO MAKE SURE WE CAPTURED ALL OF THE, UH, THE OUTSTANDING BOND PROGRAMS. UM, SO IF YOU HAVE ANYTHING TO ADD.
SO THE, THE, THEY SHOULD BE SET WHERE ALL THE, UH, BOND PROGRAMS ARE CAPTURED.
WE WERE ALSO LOOKING AT, UM, UH, THE TIME FACTOR WHEN THE LAST TIME, UM, ONE WAS BROUGHT BEFORE THE COMMISSION, AND THEN, UH, ALSO SOME, UH, REQUESTS THAT WERE MADE AT THE LAST MEETING, LIKE THE PARKLAND ACQUISITION IN MARCH.
AND SO THAT, THAT'S WHY THAT ONE'S THERE, BUT YEAH, SO IT'S A, SO TRYING TO, TO BRING BACK ALL OF THEM IN A, AS TIMELY FASHION AS POSSIBLE.
TO DO WE NEED TO VOTE ON THIS? UM, I THINK, I MEAN, WE CAN, IF, IF EVERYBODY FINDS THIS A MINIMAL, UM, I MEAN, IF THERE'S EMOTION IN A SECOND, BUT I MOVE TO ACCEPT THIS PLAN.
IS THERE A SECOND, SECOND? IT OKAY.
IF, UH, ALL IN FAVOR OF APPROVAL OF THE 20, 22 DRAFT MEETING SCHEDULE AND TENTATIVE TOPICS FOR JIM TO SAY, AYE, ANY OPPOSED? OKAY.
WE'LL GO AHEAD AND MOVE FORWARD WITH THIS.
THANKS FOR ALL THE INPUT WILL ON THIS AS WELL.
[4.b. Discussion and possible action related to the FY 2022-23 budget process and Commission budget recommendations]
B DISCUSSION POSSIBLE ACTION RELATED TO FISCAL YEAR 22, 23 BUDGET PROCESS AND COMMISSION BUDGET RECOMMENDATIONS.UM, SO THIS WAS AN EMAIL THAT WAS SENT OUT AND DEFINITELY WANTED TO GET THIS ON OUR AGENDA, JUST TO SEE IF THERE'S ANY FEEDBACK, TAKE A MINUTE AND READ THROUGH IT.
IF YOU HAVEN'T READ IT ALREADY.
UM, UH, IN SUMMARY, THE CITY'S JUST SAYING, YOU KNOW, THAT THE PROJECT EXPENDITURES ARE GOING TO EXCEED REVENUE.
UM, THERE'S THREE AND A HALF PERCENT TAX REVENUE CAP THAT TOOK EFFECT, UM, THE LAST YEAR.
AND SO, UH, THE BUDGET OFFICE IS JUST ACCEPTING RECOMMENDATIONS BY BOARDS AND COMMISSIONS.
UM, SO WANTING TO GET THIS IN FRONT OF THIS GROUP, UM, AND WE DON'T HAVE TO DECIDE ON ANYTHING RIGHT NOW, OBVIOUSLY IT'S, THEY'RE NOT DUE TILL MARCH 31ST.
UM, SO WE HAVE ANOTHER MEETING TO DISCUSS, YOU KNOW, ANY IDEAS OR RECOMMENDATIONS, UH, BETWEEN NOW AND THEN, UM, THAT WE'D LIKE TO FORMALIZE.
SO JUST WANTED TO MAKE THIS AVAILABLE TO FOLKS AND JUST KNOW THAT THE, THE TIMELINE IS APPROACHING, UM, CHAIRED RODRIGUEZ.
IS THAT THE NOTE THAT YOU SENT OUT ON FOURTH OF THE CURRY FRIDAY FISCAL YEAR, 23 BUDGET? YEAH, THAT'S IT.
AND IT SHOULD BE ENOUGH POCKET THAT WILL SENT OUT AS WELL.
UH, SO ANY THOUGHTS, IDEAS, FEEDBACK, IF NOT, WE CAN, UM, YOU KNOW, THIS IS AN OPEN ITEM FOR, FOR NEXT MEETING, SO WE'LL JUST THINK ON IT UNTIL THEN, AND FEEL FREE TO EMAIL WE'LL ANY IDEAS OR ANY THOUGHTS.
YOU, YOU HAVE TO, UH, DISTRIBUTE OUT TO THE DICE AND GO AHEAD.
OKAY, WELL, YEAH, THIS I'M SORRY.
I WAS JUST GOING TO ADD THAT, UH, AS PART OF THE PROCESS, IF, IF, IF THERE IS A RECOMMENDATION OR SOMETHING THAT THE, UH, THAT A COMMISSIONER WOULD LIKE TO PROPOSE, UH, IF YOU WANTED TO SEND THAT, UH, TO ME BETWEEN NOW AND THE NEXT MEETING, UH, JUST AS, AS THE PROCESS IS SET UP THE COMMISSION AS A WHOLE WILL HAVE TO, UH, ADOPT THE RECOMMENDATION AND THEN THE RECOMMENDATION,
[01:05:01]
UH, WOULD MOVE FORWARD IN AS A, UH, AS AN OFFICIAL RECOMMENDATION FOR THE BUDGET PROCESS.THANKS, MR. DOES CRYPTO, I KNOW I WAS LOOKING AT THE LETTER.
THIS IS LIKE, UH, NEVER SAYS THAT THERE'S A THREE AND A HALF PERCENT GAP, RIGHT? YEAH.
IT TOOK A FACULTY DON'T WE NEED A LITTLE MORE DETAIL OF WHAT THAT MEANS IN THE DIFFERENT BUDGET ITEMS, THE LINE ITEMS BEFORE WE CAN, UM, HAVE A VOTE IN SUPPORT OR RECOMMENDATIONS, ET CETERA.
I MEAN, IT'S, I THINK IT'S ONE OF THESE THINGS WHERE IT'S LIKE, HEY, WE'RE, YOU KNOW, THESE ARE THE FACTS, THERE IS A CAP, UM, BASED ON OUR BUDGET, OUR EXPENDITURES ARE GOING TO EXCEED REVENUE.
IF THERE'S ANY IDEAS THAT THE COMMISSION MAY OR MAY NOT HAVE, HERE'S YOUR OPPORTUNITY.
UH, I DON'T, I DON'T KNOW THAT, YOU KNOW, BASED ON OUR PRIOR PRESENTATIONS AND DATA THAT WE HAVE, IF THERE'S ANY, YOU KNOW, BROAD LINE IDEAS, UM, UH, ABOUT POTENTIAL RECOMMENDATIONS, I DON'T KNOW.
WE'LL, IF THERE'S ANY, IF THERE'S A RESOURCE DOCUMENT OUT THERE THAT WE COULD POTENTIALLY ENGAGE, YOU KNOW, REGARDING, UH, UPCOMING BUDGET ITEMS RELATED TO BOND PROGRAMS IN OUR PURVIEW.
AND, UH, AND JUST ADD A LITTLE CLARITY.
THE, UH, THE, THE THREE AND A HALF PERCENT REVENUE CAP IS, IS, UM, JUST SOLELY FOCUSED ON THE, UH, OPERATING AND MAINTENANCE SIDE OF OUR PROPERTY TAX RATES THAT, THAT ANNUAL BUDGET.
SO THAT THREE AND A HALF PERCENT REVENUE CAP IS NOT, UH, DOES NOT AFFECT THE, UH, THE INS SIDE, THE DEBT SIDE OF THE RATE, UM, NOR WOULD IT AFFECT, UH, A BOND PROPOSITION IF, UH, IF, IF THE VOTERS VOTE ON A, UH, BOND PROPOSITION THAT MOVES FORWARD.
UM, SO I THINK THAT'S JUST ADDED BECAUSE THE LARGE MAJORITY OF OUR COMMISSIONS ARE, UH, ARE GOING TO BE MORE DIRECTLY RELATED WITH OUR ANNUAL OPERATING BUDGET.
AND SO THAT'S WHY THAT IS IN THERE.
UH, BUT SO FOR THEM ON OVERSIGHT COMMISSION, THAT 300% CAP MAY NOT BE SUPER APPLICABLE.
UH, BUT THIS WOULD, BUT THE COMMISSION IS, CAN CERTAINLY PROVIDE THEIR OWN, UM, RECOMMENDATIONS FOR THE BUDGET PROCESS, UH, MOVING FORWARD.
UH, BUT I JUST WANTED TO ADD THAT LITTLE CLARITY THERE.
THAT'S NOT, IT WON'T NECESSARILY, UH, DIRECTLY IMPACT THIS, UH, THIS SIDE.
YOU KNOW, WHEN IT COMES TO THE OPERATING BUDGET, IF YOU'RE SAYING I PRESENT THE, THE REVENUE SIDE IS, IS GOING TO BE CAPPED AT 20%, BUT YOUR EXPENSE SIDE IS GOING TO GO UP AND DOWN.
AND EACH DEPARTMENT MAY HAVE A DIFFERENT SHOW, YOU KNOW, OVERAGE, RIGHT.
UH, TRANSPORTATION, MAYBE 10, 20% OVER, WHEREAS THE WRITER, AS WELL AS, UH, YOU KNOW, WATER AND OTHER UTILITIES, MAYBE ONLY 5%.
SO WE NEED THOSE KINDS OF, UH, YOU KNOW, ACCESSES TO SAY, OKAY, WOW, YOU'RE REALLY GOING OVERBOARD HERE.
YOU NEED TO CUT BACK MORE HERE.
AND LAST YEAR IN ORDER FOR US TO GIVE, YOU KNOW, MEANINGFUL RECOMMENDATIONS.
SO WE NEED THE NEXT LAYER DOWN, AT LEAST THE WAY I LOOK AT BUDGETS.
I LOOK AT ALL THOSE NUMBERS IN PRODUCT MAKE UP MY MIND.
SO YOU GO GET, EVERYBODY TAKES 10%.
THAT'S, THAT'S NOT A GOOD WAY TO MANAGE FINANCE WELL, AND I DON'T WANT TO DIG DOWN TOO FAR INTO THE MINUTIA HERE FOR THE MEETING.
UH, BUT THE REVENUE CAP WOULD NOT APPLY TO OUR TRANSPORTATION DEPARTMENT, AUSTIN ENERGY, AUSTIN WATER, THIS APPLIES SPECIFICALLY TO PROPERTY TAX REVENUE.
SO IT WILL ONLY, IT ONLY APPLIES TO OUR GENERAL FUND DEPARTMENTS IN ON THE, IN THE OPERATING SIDE.
SO GENERAL FUND OPERATING BUDGETS ARE THE BUDGETS THAT ARE IMPACTED BY THE THREE AND A HALF PERCENT PROPERTY TAX REVENUE CAP.
UM, SO, SO SORRY TO INTERRUPT.
SO IS THERE, IS THERE ANY DIRECT RELATIONSHIP WITH, UM, ANY BOND PROPOSITIONS BONDING AUTHORITY WITH WHAT THIS PARTICULAR GAP THAT YOU'RE AWARE OF? THE THREE AND A HALF PERCENT PROPERTY TAX REVENUE CAP DOES NOT IMPACT BOND, A BOND AUTHORITY OR BOND PROPS? OKAY.
SO, BUT JUST IN GENERAL, IF ANYBODY HAS ANY MIND-BENDING, UM, EXPENSE AVOIDANCE OR ANYTHING, YOU KNOW, THAT, THAT POTENTIALLY WE COULD USE, UM, AS A RECOMMENDATION FROM THIS COMMISSION, WE CAN DO SO.
SO, UH, JUST THROWING THAT OUT THERE.
[5. FUTURE AGENDA ITEMS]
AGENDA ITEMS? I HAVE ONE IDEA WHO,[01:10:01]
WHO MANAGES THE BOND OVERSIGHT COMMISSION WEBPAGE IS THAT, UH, THE CITY CLERK'S OFFICE CITY CLERK'S OFFICE.AND IS THERE, ARE THERE, IS THERE ANY, I'M JUST THINKING ABOUT IT, IT WOULD BE NEAT TO HAVE IT MORE OF A RESOURCE, YOU KNOW, TRANSPARENCY RESOURCE.
I KNOW THERE'S DISPARATE LINKS TO DIFFERENT PROJECT PAGES AND STUFF, BUT IT'D BE NEAT TO HAVE ANY BOND ASSOCIATED PROJECT LINKS THERE ON THE PAGE.
UM, I DON'T KNOW HOW MUCH WORK THAT WOULD BE, OR IF THAT'S SOMETHING THAT THE, UH, THE DICE WOULD, WOULD WANT TO MOVE FORWARD, YOU KNOW, AS FAR AS A RECOMMENDATION.
UM, BUT I KNOW THERE'S A LOT OF DIFFERENT TOOLS, LIKE REALLY ROBUST TOOLS OUT THERE, LIKE PROJECT EXPLORER AND STUFF LIKE THAT, THAT, UM, YOU KNOW, FOLKS MAY HAVE TO DO A LITTLE DIGGING TO GET TO WHAT IF SOMEBODY THINKS, OH, LET ME GO CHECK THE BOND, YOU KNOW, THE BOND PAGE, OH, I CAN GET TO ALL THESE THINGS FROM THERE.
AND IT JUST SORT OF A SEAMLESS TRANSITION.
UM, SO THAT'S, THAT'S ONE THOUGHT, UM, WHAT'S THAT PAUSE FOR A BRILLIANT, ABSOLUTELY MORE TRANSPARENT, THE BETTER.
UM, SO THAT'S, THAT'S ONE THING.
AND, AND, AND ON THAT I CAN, UM, I CAN REACH OUT TO THE CLERK'S OFFICE TO SEE IF, UH, IF THEY'D BE ABLE TO JUST YEAH.
IF THEY CAN DO THAT, UH, ADMINISTRATIVELY THAN, UH, YEAH, I THINK THAT'D BE, YEAH.
ANY, ANY OTHER ITEMS TO POTENTIALLY DISCUSS IN THE FUTURE? GREAT.
HOW ARE WE ON OUR, UH, APPOINTEES LIST? WE MAXED OUT HERE, UH, WE ARE AT 10 OF 11 AND SO A DISTRICT FOUR JUST ELECTED A NEW COUNCIL MEMBER.
AND SO THAT IS, UH, THAT WILL BE THE NECK, THE ONLY ONE REMAINING TO BE.
WELL, UM, THANK YOU ALL FOR PARTICIPATING AND BEING HERE TODAY.
UH, WE CAN'T DO IT WITHOUT YOU OBVIOUSLY.
SO, UM, AGAIN, THANKS FOR BEING HERE AND HOPE EVERYONE HAS A GREAT MONTH, THEN WE'LL TALK TO YOU SOON.
AND I THINK TO MYSELF, WHAT MADE YOU TO WALK AWAY? I HEAR THE SWEET THINGS THAT YOU SAYING, AND THEN TURN AROUND AND COME BACK.
THE WALL THAT SEEMS TO BE CANCER, A MEGA REAL BIG.