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[CALL TO ORDER]
YOU.AND COMMISSIONER STANLEY HERE.
AND DO WE HAVE ANYBODY SIGNED UP FOR PUBLIC COMMUNICATION? NO.
[1. Approval of the minutes of the Regular meeting of the Bond Oversight Commission on November 20, 2024. ]
WILL GO TO THE APPROVAL OF THE MINUTES.EVERYBODY HAD A CHANCE TO LOOK AT 'EM VERY QUICKLY.
ALL ENTERTAIN A MOTION TO APPROVE THE MINUTES.
[2. Staff briefing from the City of Austin Housing Department on the bond programs ]
WE'RE READY FOR OUR STAFF BRIEFING.GOOD MORNING OR GOOD AFTERNOON.
I'M THE HOUSING AND COMMUNITY DEVELOPMENT OFFICER WITH THE HOUSING DEPARTMENT.
UH, UNDER MY PURVIEW, WE HAVE OUR RE UH, REAL ESTATE TRANSACTIONS, INCLUDING ACQUISITIONS AS WELL AS DISPOSITIONS.
WE ALSO HAVE OUR GAP FINANCING PROGRAM AND OUR, UH, DEVELOPER INCENTIVE PROGRAMS. UH, TODAY I'M GONNA BE GOING OVER TWO OF OUR MOST RECENT BOND PACKAGES, UH, THAT WERE APPROVED BY THE VOTERS.
UH, THE FIRST WAS APPROVED IN 2018, ALONG WITH SEVERAL OTHER BOND PACKAGES.
THE SECOND WAS APPROVED IN 2022.
UM, AND, UH, I BELIEVE THAT THE REQUEST WAS TO UPDATE ON THE SPENDING, UPDATE ON, ON WHERE THOSE BOND PACKAGES SIT IN TERMS OF, UH, HOW MUCH IS LEFT AND HOW QUICKLY WE CAN GET THE DOLLARS OUT.
UH, SO THAT'S WHAT WE'RE GONNA BE FOCUSING ON.
UH, AS I UNDERSTAND, UH, THE BOND OVERSIGHT COMMITTEE, THIS IS YOUR SLIDE.
UM, SO I DO HOPE TO, UH, KEEP TO YOUR VISION, MISSION AND GOALS, UH, THROUGH THIS PRESENTATION.
UM, MOSTLY THROUGH TRANSPARENCY AND, UH, ANSWERING ANY QUESTIONS THAT YOU MAY HAVE ALONG THE WAY.
SO FIRST, UH, I'D LIKE TO GO OVER OUR 2018, UM, GENERAL OBLIGATION BOND PACKAGE.
UH, THAT WAS PART OF PROPOSITION A, UH, THIS WAS THE BALLOT LANGUAGE.
UH, AND IT WAS ALLOCATED, UH, BY, UH, BALLOT PROPOSITION LANGUAGE ACROSS FOUR DIFFERENT, UH, SPENDING AREAS INCLUDING, UH, REAL ESTATE ACQUISITIONS, RENTAL HOUSING DEVELOPMENT ASSISTANCE, OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE, AND, UH, GO REPAIR OR HOME REPAIR PROGRAMS. UH, THE, UH, REAL ESTATE TRANSACTION, UH, BUCKET GOT A LITTLE PROBLEMATIC WITH SOME OF OUR BORROWERS BECAUSE THEY THOUGHT THAT WAS MONEY FOR THEM TO ACQUIRE THINGS.
BUT IT'S ACTUALLY FOR AUSTIN HOUSING FINANCE CORPORATION TO ACQUIRE AND THEN SOLICIT FOR, UH, FOR DEVELOPMENT PARTNERS.
UM, WITH THAT PROGRAM, UH, WE DID HAVE, UH, SPECIFIC BUCKETS OF, OF, UH, DOLLARS, UH, THAT COULD BE SPENT.
SO THERE WAS $100 MILLION AVAILABLE FOR ACQUISITION, $94 MILLION AVAILABLE FOR RENTAL HOUSING DEVELOPMENT ASSISTANCE AND OWNERSHIP.
28 MILLION FOR OWNERSHIP HOUSING AND 28 FOR REPAIRS.
UM, AS YOU CAN SEE, WE HAVE, UM, APPROPRIATED ALL 250 MILLION.
UH, WE HAVE SPENT ALL BUT ABOUT 1 MILLION LEFT.
UM, AND THAT IS ACROSS ALL FOUR BUCKETS.
NOW, SINCE THAT LANGUAGE WAS SPECIFIC TO THE AMOUNT PER, UH, SPENDING CATEGORY, UH, THOSE DOLLARS ARE A LITTLE, LET'S SAY, DIFFICULT TO SPEND.
UM, IT'S, UH, IT'S TOUGH TO MAKE A LOAN FOR A RENTAL HOUSING DEVELOPMENT ASSISTANCE, UH, FOR $300,000 ON A $20 MILLION PROPERTY.
UM, SO WE ARE GONNA LEVERAGE THESE FUNDS AGAINST OTHER FUNDS, UH, AS THEY BECOME AVAILABLE.
UH, AGAIN, THE FIRST BUCKET THAT WE DEALT WITH WAS, UH, LAND ACQUISITION THROUGH OUR 2018 GL BONDS, UH, WE WERE ABLE TO ACQUIRE, EXCUSE ME, WE WERE ABLE TO ACQUIRE, UH, THREE HOTELS THAT ARE NOW CONVERTED TO PERMANENT SUPPORTIVE HOUSING.
ALL THREE OF THOSE HOTELS ARE OPEN, UM, AND THEY ARE SERVING INDIVIDUALS WHO ARE, UH, CHRONICALLY OR EXPERIENCING HOMELESSNESS.
UM, WE HAVE ACQUIRED 5.2 AND A HALF ACRES, OR 52 AND A HALF ACRES, UH, THROUGHOUT THE CITY, UH, IN ALMOST ALL COUNCIL DISTRICTS.
I THINK WE'RE ONLY MISSING DISTRICT TWO POSSIBLY.
UM, BUT WE DO HAVE, UH, WE DID
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ACQUIRE LAND IN DISTRICT EIGHT AND IN DISTRICT SIX, UM, AND 10, I BELIEVE, UH, WE HAVE PERVERT PRESERVED, UH, TWO EXISTING PARTNERSHIPS THAT A HFC HAD, UH, UH, HAD ENTERED INTO IN YEARS PAST.UH, SO WE REFINANCED THOSE PROPERTIES, UH, REINVESTED, BROUGHT THEM UP TO SPEC, UM, AND BROUGHT IN NEW PARTNERS, UH, TO HELP US MANAGE.
WE'VE ALSO INVESTED OR PRESERVED NINE DIFFERENT MULTIFAMILY PROPERTIES ACROSS THE CITY.
THAT'S, UH, THAT WOULD BE WHAT WE CALL NOAA OR NATURALLY OCCURRING AFFORDABLE HOUSING.
UM, SO IF THE RENT IS ALREADY AT 60% MEDIAN FAMILY INCOME, BUT THE FAC THE FACILITY NEEDS SOME IMPROVEMENTS, UH, SOME CAPITAL, UH, CAPITAL INVESTMENT, WE CAN PROVIDE THAT CAPITAL AND HOLD THE, UH, THE RENT DOWN, UH, TO WHERE IT IS AFFORDABLE FOR THE CURRENT RESIDENCE.
UH, WE ALSO PURCHASED 20 SINGLE FAMILY HOMES FROM, UH, THE HOUSING AUTHORITY OF THE CITY OF AUSTIN.
UH, THROUGH OUR COMMUNITY LAND TRUST, WE HAVE RE, UH, REFURBISHED THOSE HOMES AND SOLD THEM TO LOW INCOME HOMEOWNERS.
THE COMMUNITY LAND TRUST IS A, UH, UM, IT'S A PROCESS WHEREIN THE CITY OR AUSTIN COMMUNITY LAND TRUST WILL OWN THE LAND AND THE PROPERTY OWNER OWNS THE HOME.
UM, SO IT IS A WAY TO REDUCE PROPERTY TAXES FOR THE INDIVIDUAL HOMEOWNER.
IT'S ALSO A WAY TO, UH, THROUGH THAT, IT'S A WAY TO, UH, STABILIZE HOUSING PRICES FOR THAT FAMILY AND INCENTIVIZE, UH, OTHER WAYS TO BUILD YOUR WEALTH.
SO, GENERATIONAL WEALTH BUILDING, UM, ONE OF OUR LARGEST PRO UH, ACQUISITIONS THROUGH THE 2018 BOND WAS THE HYDE PARK PORTFOLIO.
THIS INCLUDED SEVEN DIFFERENT, UM, MULTIFAMILY, NATURALLY OCCURRING, AFFORDABLE HOUSING DEVELOPMENTS, UH, ALL IN THE HYDE PARK AREA.
UM, WE HAVE BEEN, WE ACQUIRED THOSE IN PARTNERSHIP WITH, UH, AFFORDABLE CENTRAL TEXAS.
AND, UH, WE ARE CURRENTLY MANAGING THOSE.
WE HAVE EXPENDED ALL BUT 5 MILLION OF, UH, THE 2018 LAND ACQUISITION DOLLARS, UM, WHICH WE ARE, IT, WE JUST RECEIVED APPROVAL TO GO SPEND ON THE SOUTH CONGRESS, UH, EL GAO SITE.
THAT'S IN THE 2,900 BLOCK OF ELGA OF, UH, SOUTH CONGRESS.
WE HAVE SOME LAND THAT WE, UH, PURCHASED RECENTLY NEXT DOOR TO THESE PARCELS THAT, UH, WE ARE CON COMBINING AND GOING TO BUILD, UH, FOR, FOR MULTIFAMILY DEVELOPMENT.
UM, IT WILL BE DEEPLY AFFORDABLE.
IT'S RIGHT ACROSS THE STREET FROM, UH, UM, ST.
SO IT'S A GREAT LOCATION ON, UH, THE, THE LIGHT RAIL.
UM, AND WE'RE VERY EXCITED ABOUT THAT.
UH, WE HAVE ABOUT A HUNDRED THOUSAND DOLLARS LEFT IN, UH, THE LAND ACQUISITION, UH, UH, ACCOUNT.
SO IF ANYONE KNOWS OF ANY, UM, MULTIPLE ACRE SITE THAT WE CAN PURCHASE FOR A HUNDRED THOUSAND DOLLARS, PLEASE LET ME KNOW.
AGAIN, THIS WAS $94 MILLION IN GEO BONDS FOR RENTAL HOUSING DEVELOPMENT ASSISTANCE.
UM, THROUGH THESE DOLLARS, WE HAVE GENERATED OVER 1300 PERMANENT SUPPORTIVE HOUSING UNITS.
AGAIN, THOSE ARE PERMANENT SUPPORTIVE HOUSING UNITS FOR INDIVIDUALS EXPERIENCING CHRONIC HOMELESS HOMELESSNESS OR, UH, CURRENTLY EXPERIENCING HOMELESSNESS.
UM, HALF OF THOSE UNITS HAVE BEEN DEDICATED TO THE, UH, CONTINUUM OF CARE MANAGED BY ECHO.
UH, SO THESE ARE INDIVIDUALS WHO ARE ON THE COORDINATED ENTRY SYSTEM WHO HAVE BEEN SCORED THROUGH THE VI SPADA.
UM, PLEASE DON'T ASK ME WHAT THAT MEANS.
UH, BUT THESE ARE INDIVIDUALS WHO ARE EXPERIENCING CHRONIC HOMELESSNESS AND, UH, HAVE SIGNIFICANT ISSUES, UH, THAT OUR SERVICE PROVIDERS ARE HELPING THEM MANAGE.
UH, ON TOP OF THOSE 1300 PSH UNITS, WE'VE ALSO GENERATED ALMOST 800 UNITS THAT ARE AFFORDABLE, BELOW 30% MEDIAN FAMILY INCOME, AND THAT WOULD BE AFFORDABILITY WITHOUT, UM, A VOUCHER.
SO THESE ARE INDIVIDUALS WHO ARE MAKING 30% OF THE MEDIAN FAMILY INCOME, I BELIEVE, IN THE CITY OF AUSTIN.
UH, THAT WOULD BE ABOUT 38,000 FOR A FAMILY OF FOUR.
UM, AND WE HAVE GENERATED OVER 800, ALMOST 800 UNITS THAT ARE AFFORDABLE TO THAT HOUSEHOLD.
3000 UNITS THAT ARE AFFORDABLE TO A 50% MEDIAN FAMILY INCOME.
AND AS I SAID, WE'VE GOT A FEW, UH, FEW DOLLARS LEFT.
THE ENCUMBRANCE THAT YOU SEE THERE, THAT $3.3 MILLION, UH, THESE ARE LOANS THAT HAVE BEEN ISSUED THAT HAVE BEEN CLOSED, UH, THAT WE ARE CURRENTLY DRAWING DOWN ON.
HOWEVER, WE HAVE SPENT, UH, 90 MILLION AND WE'VE GOT ABOUT $160,000 LEFT TO GO.
SO WE ARE SPENDING, UH, AGGRESSIVELY IN THESE TWO BUCKETS.
UH, AND OUR DEVELOPER FRIENDS ARE, ARE HELPING US VERY WELL WITH THAT.
THIRD, WE HAVE OUR OWNERSHIP HOUSING DEVELOPMENT ASSISTANCE
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PROGRAM.UH, THIS HAS GENERATED OVER 550 UNITS, UH, THAT ARE AFFORDABLE TO 80% MEDIAN FAMILY INCOME.
AND THESE ARE OWNERSHIP UNITS.
UH, I KNOW THAT HOME OWNERSHIP IN THE CITY OF AUSTIN IS QUITE DIFFICULT, UM, ESPECIALLY IF YOU, UH, HAVEN'T PURCHASED YET.
UH, WE HAVE, UH, INVESTED IN THESE HOMES.
WE HAVE, UH, UH, MADE THEM, UH, IDENTICAL TO MARKET RATE, UH, HOMES IN MANY NEIGHBORHOODS.
WE'VE BUILT ENTIRE NEIGHBORHOODS, UH, WITH OUR PARTNERS SUCH AS, UH, GNDC OR GUADALUPE NEIGHBORHOOD DEVELOPMENT CENTER, HABITAT FOR HUMANITY.
UM, WE HAVE CREATED OVER 80 UNITS THAT ARE AFFORDABLE, BELOW 60% OF THE MEDIAN FAMILY INCOME.
UH, AND AGAIN, WITH OUR, UH, 26 MILLION THAT WE HAVE, OR I'M SORRY, 28 MILLION THAT WAS ALLOCATED, WE HAVE ENCUMBERED 1.5 MILLION.
AND THEN WE JUST HAVE TO FIND A PLACE TO SPEND $370,000.
IF MARK ROGERS IS WATCHING, HE'S GOT AN IDEA OF WHERE WE CAN SPEND THAT.
FOURTH, WE HAVE OUR GO REPAIR PROGRAM.
NOW, OUR GO REPAIR PROGRAM SERVES, UH, EXISTING HOMEOWNERS.
THIS IS A, UH, ELIGIBLE HOUSEHOLD THAT IS, THAT IS CURRENTLY, UH, EARNING LESS THAN 80% OF THE MEDIAN FAMILY INCOME.
UH, AND THESE ARE REPAIRS FOR THE HOMES, UH, TO MAKE THE HOME LIVABLE.
WE HAVE SEVERAL PROGRAMS RANGING FROM MINOR HOME REPAIR, WHICH PROVIDES ABOUT $5,000, AND THAT IS FUNDED WITH OUR FEDERAL FUNDS.
WE ALSO, ALL THE WAY UP TO OUR HOME REPAIR OR HOME REPLACEMENT PROGRAM, WHICH IS ALSO FEDERALLY FUNDED, UM, THAT CAN GO UP TO $75,000, OR IF WE NEED TO REPLACE THE HOUSE, THEN WE CAN DO THAT.
UM, THESE GO REPAIR PRO UH, BOND PROGRAMS ARE A MAXIMUM OF $20,000.
SO THINK A ROOF OR A MINOR FOUNDATION REPAIR, UM, REFITTING YOUR DOORS, FIXING, UH, FIXING SOME WINDOWS, UH, DOING SOME OF THE, THE NECESSARY IMPROVEMENTS THAT A HOUSEHOLD NEEDS AT SOME POINT IN THEIR LIFE.
ON AVERAGE, WE SPEND ABOUT FIVE $15,000 PER HOME.
UM, AND WE HAVE ABOUT 12,000 LEFT TO GO.
UM, WE WORK WITH, UH, NONPROFIT CORPORATIONS, SEVEN DIFFERENT NONPROFITS TO MANAGE THESE FUNDS AND TO MANAGE THE APPLICATION.
UM, SO THINKING OF, UH, PLACES LIKE, UH, AUSTIN URBAN LEAGUE, WE'LL ACCEPT THE APPLICATION, SCHEDULE IT, AND THEN GO OUT AND PERFORM THE WORK WITH THEIR CONTRACTORS.
AND, UH, WE WILL PAY THE BILLS.
AS I MENTIONED, WE'VE ALMOST SPENT ALL OF THAT.
WE'VE GOT ABOUT A MILLION DOLLARS LEFT.
UM, FOR OUR 20, OUR 2022 GENERAL OBLIGATION BONDS.
WE WERE, UH, UH, THE VOTERS GAVE US $350 MILLION, UH, TO SPEND ACROSS THOSE FOUR, UH, SPENDING AREAS.
HOWEVER, IN THIS BALLOT, THOSE SPENDING AREAS WERE NOT AS DEFINED AS THEY WERE IN 2018.
SO WE HAVE SOME FLEXIBILITY TO SPEND, UH, WHERE THE DEMAND EXISTS.
UM, AND THAT PUTS OUR, OUR STAFF AT A LITTLE BIT OF A, WE WANNA SPEND OVER HERE.
SO WE ARE, IT, IT GIVES US A, A BLESSING OF, UH, OF OPTIONS.
AGAIN, THESE ARE THE FOUR AREAS WHERE WE HAVE SPENDING AUTHORITY FOR THE GENERAL OBLIGATION BOND FROM 2022.
THAT'S LAND ACQUISITION, RENTAL HOUSING DEVELOPMENT ASSISTANCE, OR RHODA OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE, OR ODA.
AND OUR HOME REPAIR PROGRAM, AS YOU CAN SEE ON THIS SLIDE, OUR, UH, WE HAVE APPROPRIATED ABOUT $195 MILLION.
UH, FROM THIS, UH, VOTER APPROVED PACKAGE OF 350.
WE'VE ENCUMBERED 154 MILLION, AND WE'VE SPENT 115 MILLION.
UH, THAT MEANS THAT WE HAVE 40 MILLION THAT IS STILL COMMITTED.
UH, AND THOSE ARE PRIMARILY IN, UH, LOANS FOR CONSTRUCTION, FOR RENTAL HOUSING DEVELOPMENT ASSISTANCE, UH, THAT WE DO EXPECT THOSE LOANS TO BE COMPLETED AND, AND PAID OUT ENTIRELY WITHIN THE NEXT YEAR TO, TO 18 MONTHS.
UM, FOR WHAT IS CURRENTLY ON THE BOOKS, UH, WE HAVE, UH, ALSO $115 MILLION THAT WE HAVE NOT APPROPRIATED YET.
HOWEVER, ON, UH, MARCH 6TH, WE ARE GOING TO COUNSEL TO, UH, EXPEDITE $30 MILLION OF THAT FOR THIS FISCAL YEAR, SO THAT, UH, WE CAN, UH, INVEST IN SOME OF OUR 9% LOW INCOME HOUSING TAX CREDIT PROPERTIES, WHICH ARE BEING AWARDED THIS SUMMER.
UM, WE'VE SPENT ALL OF OUR MONEY AND WE NEED TO KEEP SPENDING, UH, TO BUILD THE HOUSING THAT'S NECESSARY UNDER THE 2022 LAND ACQUISITIONS.
UM, AGAIN, THESE ARE ENTIRELY PROPERTY BA, UM, OPPORTUNITY BASED, UH, DECISIONS.
UM, WE ARE ACQUIRING BOTH RAW LAND AS WELL AS EXISTING PROPERTIES, EITHER AS AN IN INDIVIDUAL ENTITY OR AUSTIN HOUSING
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FINANCE CORPORATION, OR IN PARTNERSHIP WITH, UH, ANOTHER ENTITY SUCH AS AFFORDABLE, CENTRAL TEXAS, OR, UH, ANY OTHER DEVELOPERS THAT THAT WOULD LIKE TO APPLY.WE HAVE AN APPLICATION ONLINE.
THE, UH, LAND IS DEVELOPED IF IT IS, UH, RAW LAND.
THE LAND IS DEVELOPED THROUGH THE SOLICITATION PROCESS.
UH, WE HAVE, WE WERE ISSUING, UH, NOTICES, OH, WHAT IS IT? RFP.
WE WERE ISSUE, UH, REQUEST FOR PROPOSALS.
UH, HOWEVER, SINCE THIS IS LAND THAT WE CAN, UH, MANAGE, THAT WE CAN TAKE OUR TIME WITH WHEN WE NEED TO, AND REALLY CONSULT THE COMMUNITY, GET AS MUCH, UH, PUBLIC FEEDBACK ON HOW THIS PROPERTY, THESE PROPERTIES NEED TO BE DEVELOPED, WE'VE DECIDED TO PURSUE AN RFQ, WHICH IS A REQUEST FOR QUALIFICATIONS.
SO WHEN WE HAVE OUR, WE'VE RECENTLY AWARDED OUR RYAN DRIVE PROPERTY, WHICH IS AT THE INTERSECTION OF, UH, UH, LAMAR AT THE, UH, CRESTVIEW STATION.
UM, WE ISSUED AN RFQ AND AWARDED THAT.
WE ARE NOW WORKING WITH DMA DEVELOPMENT COMPANY TO DESIGN AND TO, UH, TO CONSTRUCT THE PROJECT.
UH, ONE OF THE MAJOR CONSIDERATIONS WITH USING OUR LAND, OUR GEO BONDS FOR LAND ACQUISITION IS THE VALUE OF LAND, THE PRICE OF LAND, AND THE COST TO BORROW.
UM, WE CAN ACQUIRE LAND IF WE'RE GONNA GO, UH, BORROW FROM THE BANK.
HOWEVER, AT 8% INTEREST, THAT'S, IT'S A LITTLE UNCOMFORTABLE.
SO, UH, WE DO LIKE TO USE OUR, OUR CASH ON HAND, UH, TO ACQUIRE THE LAND.
UM, WE'VE GOT ABOUT, WE'VE GOT A LITTLE OVER 10 PROPERTIES IN OUR PORTFOLIO THAT WE ARE, UH, GOING TO BE DEVELOPING THROUGH THAT SOLICITATION PROCESS.
OUR STAFF CAPACITY IS RIGHT AT AROUND TWO TO THREE, UH, RF QS PER YEAR, INCLUDING ALL OF THE, UH, COMMUNITY ENGAGEMENT AND DEVELOPMENT WORK.
UH, SO HOPEFULLY BY THE END OF 2030, WE WILL HAVE ALL 10 OF THOSE PROPERTIES, UH, AWARDED.
AND UNDER DEVELOPMENT, UH, WE DO ALSO HAVE ABOUT 10 ACQUISITIONS, UH, FOR PRESERVATION, WHERE WE HAVE PRESERVED NOT NATURALLY OCCURRING AFFORDABLE HOUSING, UH, PRIMARILY WITH, AGAIN, UH, AFFORDABLE CENTRAL TEXAS.
UH, WE DO HAVE ABOUT 41 MILLIONS, UH, LEFT IN OUR BALANCE.
UM, AND I CAN TELL YOU THAT MY, THAT NICOLE JOCELYN IS OUR MANAGER UNDER THAT TEAM, AND SHE IS LOOKING TO SPEND THAT MONEY.
UM, AFTER, UH, THIS FISCAL YEAR, WE WILL HAVE ABOUT $60 MILLION OF UNALLOCATED, UH, THROUGH FY 27.
AND WHILE WE ARE LOOKING AT FORWARD ALLOCATING, AGAIN, 30 MILLION FOR THIS FISCAL YEAR, WE'RE ALSO LOOKING AT FORWARD ALLOCATING THE FISCAL YEAR 27, UH, UM, BONDS.
SO, SO THAT WE CAN SPEND THEM IN FISCAL YEAR 26, UM, THAT WAY WE JUST GET EVERYTHING OUTTA THE WAY.
THE, UH, SECOND LARGE AREA OF SPENDING, UH, UNDER THE 2022.
AGAIN, RENTAL HOUSING DEVELOPMENT ASSISTANCE.
UM, WE ARE CURRENTLY UNDER A, UH, OR WE ARE FINISHING UP A CONTRACT WITH GUIDEHOUSE.
UH, THEY CAME IN TO LOOK AT OUR PROGRAMS, BOTH THE RENTAL HOUSING DEVELOPMENT ASSISTANCE AND THE OWNERSHIP HOUSING DEVELOPMENT ASSISTANCE PROGRAMS, UH, TO TELL US HOW WE CAN BE BETTER, HOW WE CAN, UH, GET THE MONEY FASTER, UM, MORE EFFICIENTLY AND, UH, MORE EQUITABLY.
UH, WE ARE CURRENTLY IMPLEMENTING THOSE RECOMMENDATIONS NOW, AND WE SHOULD HAVE A NEW PROGRAM ENTIRELY NEW, UH, GUIDELINES WITH A NEW APPLICATION AND NEW CYCLE, UH, ANNOUNCED IN LATE MAY.
UH, THE, THAT WILL BE FOLLOWED SHORTLY BY THE ANNOUNCEMENT OF A, OF A NOTICE OF FUNDING OPPORTUNITY, UM, OR A FUNDING AVAILABILITY, UH, THAT WILL CLOSE AT THE, UH, END OF NEXT CALENDAR OR AT THE END OF THIS CALENDAR YEAR.
UM, I WILL NOTE THAT, OH, SOMETHING THAT PROBABLY EVERYBODY IN THIS ROOM KNOWS, UH, COSTS HAVE GONE UP.
UM, DEVELOPMENT COSTS HAVE INCREASED, UH, NOT JUST LAND, NOT JUST LABOR, UH, BUT MATERIALS.
UH, SPECIFICALLY IN OUR DEVELOPMENTS FOR 2018 BONDS, WE HAD AVERAGED AROUND $50,000 PER UNIT OF INVESTMENT.
WE ARE SEEING THAT NUMBER GROW SHARPLY FOR THE 2022 BONDS.
UH, AND HOWEVER, WE'RE STILL LEVERAGING AT A SIMILAR RATE.
SO OUR DOLLARS JUST DON'T GO AS FAR.
UH, THERE IS A LIMITED INCREASE IN COMPLEMENTARY FUNDING SOURCES.
SO, UH, WE DO PARTNER WITH LITECH, UH, WITH PROPERTIES WHO HAVE ACHIEVED THE LOW INCOME HOUSING TAX CREDITS.
UM, THERE'S ALSO A LOT OF CONCERN COMING OUT OF WASHINGTON DC ABOUT FUNDING.
UH, SO WE KNOW THAT OUR DOLLARS, EVEN THOUGH THEY DON'T GO AS FAR, ARE EVEN MORE VALUABLE.
UH, WE DO PLAN TO BRING, UH, OUR FISCAL 27 ALLOCATION FORWARD, AND CURRENTLY WE HAVE $0 AVAILABLE UNDER THIS BUCKET.
UM, HOWEVER, AFTER, UH, THIS, AFTER THIS MARCH,
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UH, WHEN WE FORWARD ALLOCATE, WE'LL HAVE ANOTHER $60 MILLION AVAILABLE FOR OWNERSHIP HOUSING.WE ALSO, UH, GUIDEHOUSE HAS ALSO REVIEWED THIS, UH, THIS PROGRAM.
WE, FOR THE LAST SEVERAL YEARS, WE HAVE, UH, MANAGED BOTH RENTAL HOUSING AND OWNERSHIP HOUSING IN A SIMILAR FORMAT, EVEN THOUGH THEY'RE TWO COMPLETELY DIFFERENT BEASTS.
UM, FUNDING IS DIFFERENT, PROCESS IS DIFFERENT.
IT'S, UH, IT, IT'S A, WE'RE EXCITED FOR GUIDEHOUSE TO COME IN AND HELP US FIGURE OUT HOW TO DIFFERENTIATE.
UH, AGAIN, WE HAVE WORKED WITH HABITAT FOR HUMANITY AND, UH, OTHER DEVELOPERS SUCH AS, UH, UH, GUADALUPE NEIGHBORHOOD, UM, AS WELL AS BLACKLAND.
UM, AGAIN, THESE ARE LONGER DEVELOPMENT TIMES.
IT IS MORE EXPENSIVE BECAUSE THERE ARE NOT NEARLY AS MANY AVAILABLE RESOURCES.
UM, BUT, UH, WE ARE INVESTING AS EFFICIENTLY AND AND AGGRESSIVELY AS WE CAN.
WE CURRENTLY HAVE ABOUT $474,424,000 AVAILABLE THIS FISCAL YEAR.
UM, WE DON'T SEE ANY NEED TO FORWARD ALLOCATE FOR THIS PROGRAM.
UM, BUT WE WILL HAVE ANOTHER $20 MILLION OF UNALLOCATED AT, UH, THE END OF THIS FISCAL YEAR.
AND THEN FINALLY, OUR HOME REPAIR PROGRAMS. WE HAVE BEEN SPENDING ALMOST EXCLUSIVELY THROUGH OUR 2018 GEO BONDS FOR THE LAST, UH, FOR THE LAST SEVERAL YEARS.
UM, ONE OF THE CHALLENGES THAT WE HAVE IS, UH, THE CAPACITY TO BUILD MORE.
UM, BUT SINCE WE, UH, PARTNER WITH NONPROFITS, UH, WE HAVE A LITTLE BIT OF A, OF A, A, A BOTTLENECK.
UH, SO WHILE THERE IS A, A DEMAND FOR, UH, HOME REPAIR PROGRAMS THROUGHOUT THE CITY, UM, WE ARE ONLY SPENDING AT A, AT A SLOWER RATE.
UH, KNOWING THAT IN 2022, WHEN WE DEVELOPED THE, THE SPEND PLAN FOR THIS, WE DECIDED THAT WE WOULD HAVE $5 MILLION ANNUALLY STARTING FY 25, AND THEN ONE FOR FY 26 AND FIVE MORE FOR FY 27.
UM, SO WE STILL HAVE $15 MILLION AVAILABLE FOR HOME REPAIR PROGRAMS. UM, BUT AS WE GET FURTHER AND FURTHER DOWN THE CALENDAR, WE'RE GOING TO HAVE TO, UH, DETERMINE HOW BEST WE NEED TO SPEND THOSE DOLLARS.
AND FINALLY, I'LL JUST TO HIGHLIGHT SOME NEXT STEPS.
UM, AGAIN, WE ARE GOING TO, UH, UH, MARCH 6TH, UH, TO COUNSEL FOR A BUDGET AMENDMENT AND SERVICE AGREEMENT AMENDMENT, UH, TO FORWARD ALLOCATE SOME OF THE 2022 GO BONDS.
UM, WE ARE ALSO CURRENTLY UNDERTAKING A, UH, OR WE RECENTLY RECEIVED A REPORT FROM HR AND A, UH, TO PRIORITIZE OUR HOLDINGS, UH, TO TELL US WHICH ONES SHOULD BE DEVELOPED NOW, WHICH ONES WE CAN WAIT ON.
UH, THOSE RECOMMENDATIONS FROM GUIDEHOUSE, UH, THAT I TALKED ABOUT, THE RHDA AND OHDA PROGRAMS, UH, THAT IMPLEMENTATION IS GOING FORWARD.
UH, WE SHOULD SEE, UH, PROGRESS ON THAT BY LATE MAY.
UM, WE WILL ALSO HAVE A NEW SOLICITATION FOR, UH, PARTNERSHIP DEVELOPMENT, UM, THIS SUMMER.
UH, SO, UH, KEEP AN EYE OUT FOR THAT.
WE'RE, UH, THAT PRIORITIZATION IS GOING TO DETERMINE WHICH OF OUR HOLDINGS WILL BE SOLICITED.
UM, FINALLY, THE IDIQ, UH, FOR NEW GO REPAIR CONTRACTS WILL BE ISSUED LATER THIS YEAR, AS WELL AS IN NOFA FOR THAT 4% LITECH AWARD, UH, FOR THE RHDA PROGRAM, UH, TO BE CLOSED IN NOVEMBER.
UM, BUT, UH, I DO THANK YOU GUYS FOR YOUR TIME, AND PLEASE, UH, UH, I'LL BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE.
I'D LIKE TO ASK, CAN YOU TELL US A LITTLE BIT MORE ABOUT HOW YOU MEASURE THE SUCCESS OF SOME OF THESE PROGRAMS? YES.
UM, YOU MEAN THE, UH, THE, THE SPENDING OR THE DEVELOPMENTS? THE SPENDING.
UM, SO THROUGH THE RHDA PROGRAM, AGAIN, THIS IS, THIS IS WHAT IS, UH, BEING REVIEWED BY GUIDEHOUSE RIGHT NOW.
BUT OUR, OUR APPLICATION PROCESS, UH, LOOKS FOR THREE BROAD METRICS BENEFIT TO THE COMMUNITY, BENEFIT TO, UH, THE DEVELOPMENT AND, UM, BENEFIT TO THE RESIDENTS.
SO, UH, FOR ANY PROPERTY THAT WE INVEST OUR RHDA FUNDS, UH, THOSE DOLLARS CAN ONLY SERVE 50% MEDIAN FAMILY INCOME AND BELOW.
UM, SO WE'RE GONNA HOLD THOSE, UH, THOSE RENTS LOW FOR 40 YEARS.
UM, THEN, UH, WE WANNA MAKE SURE IT'S IN THE RIGHT LOCATION, SO WE WANNA MAKE SURE THAT, UH, WE HAVE ACCESS TO TRANSIT, UH, ACCESS TO SCHOOLS ACCESS.
WE DON'T WANNA BE IN ANY DESERT HEALTHCARE, DESERT FOOD DESERT, ANYTHING LIKE THAT.
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SO THAT'S THE, UH, RESIDENTS, UH, THE COMMUNITY.AND WE WANNA MAKE SURE THAT THE DEVELOPMENT IS HEALTHY.
UM, WE CAN PUT MILLIONS OF DOLLARS IN THIS INTO A PROPERTY, BUT IF THE DEVELOP DEVELOPER DOESN'T KNOW WHAT THEY'RE DOING, THEN THAT'S GOING TO, IT'S JUST NOT GONNA WORK.
SO WE MEASURE ALL THREE OF THOSE TOGETHER.
UM, IT'S GONNA BE A LOT CLEARER ONCE WE HAVE THE NEW APPLICATION FROM GUIDEHOUSE.
UM, BUT WE DO HOPE TO SEE A PROPERTY THAT AT THE END OF THE DAY, IT SHOULD NOT LOOK ANY DIFFERENT THAN ANY REGULAR MARKET RATE PROPERTY.
UM, IT, UH, SHOULD NOT HAVE, UH, THE EXCESS, UH, UM, EVICTION RATES, UH, THAT YOU MIGHT SEE IN SOME, UM, NOT, UH, AFFORDABLE HOUSING PROPERTIES.
UM, AND THE PROPERTY SHOULD BE CLEAN.
SO THE DEVELOPMENT NEEDS TO MAKE SURE THAT THEY ARE TAKING CARE OF THEIR INVESTMENT AS WELL AS THEIR RESIDENTS.
AND, AND MAYBE TO ADD ON TO MY QUESTION, YOU KNOW, AND, AND WHEN I THINK ABOUT AFFORDABLE HOUSING, AND, AND I MAY NOT BE THINKING ABOUT THIS APPROPRIATELY, SO IF NOT, JUST JUST LET ME KNOW.
UH, I THINK ABOUT UNHOUSED POPULATION PER CAPITA IN THE CITY OF AUSTIN.
AND SO I, I WOULD THINK THAT YOU WOULD BE TRYING TO DRIVE THOSE NUMBERS DOWN.
IS, IS THAT A METRIC FOR SUCCESS? AND CAN YOU SPEAK TO WHETHER OR NOT THAT'S GROWING OR SHRINKING TODAY? THAT IS DEFINITELY A METRIC FOR SUCCESS.
UM, WE, SO THROUGH OUR FUNDING, THROUGH OUR PROGRAMS, WE REALLY SERVE, UH, THE CONTINUUM OF THE POPULATION FROM, UH, CHRONIC HOMELESSNESS.
SOMEONE WHO'S BEEN ON THE STREET FOR 12 YEARS, UH, ALL THE WAY UP TO, UM, MEDIAN FAMILY INCOME OF 80%.
SO PROSPECTIVE HOME OWNERSHIP, UM, THAT'S WHO WE CAN ASSIST.
NOW, PROPERTIES THAT WE FUND ALSO DO HAVE MARKET RATE.
UH, SOME OF THEM HAVE MARKET RATE COMPONENTS.
SO THE ENTIRE CONTINUUM WE CAN TOUCH.
UM, WHEN WE'RE TALKING SPECIFICALLY ABOUT PERMANENT SUPPORTIVE HOUSING AND INDIVIDUALS EXPERIENCING HOMELESSNESS, UH, YES, WE HAVE PRIORITIZED THAT.
UM, FOR THE LAST SEVERAL YEARS, THE HOTELS THAT WE'VE CONVERTED, THOSE ARE ALL PERMANENT SUPPORTIVE HOUSING.
UM, WE, OUR FIRST, UH, OUR FIRST BIG PARTNERSHIP IN, OR ACTUALLY OUR LAST PARTNERSHIP THAT JUST CAME ONLINE LAST YEAR WAS A SPARROW AT RUTLAND.
THAT'S 171 UNITS OF PERMANENT SUPPORTIVE HOUSING PARTNERED WITH CARITAS.
THE, NOT ONLY IS THE CAPITAL, UH, REQUIRED FOR THE CONSTRUCTION, UM, BUT YOU ALSO NEED TO HAVE INCREASED, UH, RESERVES FOR THIS POPULATION BECAUSE WE KNOW THAT, UM, THE, THIS POPULATION IS RELATIVELY ROUGH ON THE UNITS.
UM, AND, UH, SO YOU NEED HI HIGHER RESERVES.
YOU ALSO NEED SUPPORTIVE SERVICES.
UM, AND THAT IS MANAGED THROUGH, UH, THE HSO HOUSING HOMELESSNESS STRATEGY OFFICE.
UM, AND THESE ARE INDIVIDUALS THAT DON'T HAVE INCOME.
SO WE NEED OPERATING SUBSIDIES.
WE HAVE CREATED OUR, UH, OUR LOCAL HOUSING VOUCHER TO COMPLIMENT THE, UH, HOUSING AUTHORITIES, SECTION EIGHT VOUCHERS AND THEIR, UH, MAINSTREAM VOUCHERS.
HOWEVER, UM, IF YOU, ONCE YOU START TALKING ABOUT NUMBERS, UH, ONE VOUCHER IS ABOUT $15,000 PER YEAR.
ONE, UM, UH, ONE INDIVIDUAL RECEIVING SERVICE IS AROUND $20,000 PER YEAR.
SO EACH PSH UNITS THAT WE CREATE REQUIRES ABOUT $35,000 ANNUALLY TO SUPPORT IT.
NOW, INDIVIDUALS CAN GRADUATE UP AND MAYBE THAT SUBSIDY, UH, GOES DOWN, BUT IT DOESN'T NECESSARILY, BECAUSE THESE, AGAIN, THESE ARE INDIVIDUALS.
SOME HAVE TRAUMA, SOME HAVE SEVERE, UH, SEVERE DISABILITIES.
UM, AND WE WANT TO MAKE SURE THAT WE'RE SUPPORTING THEM AND SERVING THEM THE WAY THAT THEY DESERVE.
AND, AND MAYBE ONE LAST QUESTION, 'CAUSE YOU, YOU TOUCHED ON THIS.
UM, WHAT IS THE OCCUPANCY RATE IN SOME OF THOSE HOTELS THAT YOU'RE REFERENCING? UM, I DON'T HAVE THAT NUMBER RIGHT OFF HAND.
HOWEVER, I CAN SAY THAT, UH, UH, A CHALLENGE THAT WE HAVE WITH BRINGING PEOPLE IN, BRINGING PEOPLE INSIDE FROM THE OUTSIDE, UM, IS FINDING THEM.
UH, SO, UH, WHEN WE HAVE A, WHEN WE HAVE A HOTEL WITH 60 UNITS, LET'S SAY, UM, WE CAN GET A LIST OF NAMES, BUT WE THEN HAVE TO GO FIND THEM.
UM, THEY MIGHT BE, THEY MIGHT BE IN A SHELTER, THEY MIGHT BE, UH, SOMEWHERE ELSE.
UM, SO FINDING A WAY TO, TO COORDINATE AND GET PEOPLE ON, UH, INTO THE BUILDING IS THE FIRST CHALLENGE.
UM, I THINK THAT WE ARE APPROACHING FULL OCCUPANCY FOR ALL OF THE HOTELS, BUT I CAN'T BE FOR SURE.
SO I'D LIKE TO GET BACK TO YOU ON THAT.
ANYBODY ELSE? A COUPLE OF SEVERAL QUESTIONS.
UH, ON SEVERAL OF YOUR SLIDES TO YOU END UP WITH AN ISSUED,
[00:30:01]
ISSUED TO DATE, AND IT'S A BLANK.WE WEREN'T QUITE SURE HOW TO ANSWER THAT QUESTION.
UM, IS THAT IF, UH, IF WE'RE TALKING ABOUT BONDS THAT WERE, OR THAT ARE ISSUED ON THE BOND MARKET TO BE, OR THAT ARE SOLD, UM, THEN I WOULD NOT HAVE THAT INFORMATION.
UM, BUT I CAN TELL YOU WHAT WE SPENT, THAT'S CONFUSING.
BUT IT'S KIND OF THE HEART OF THE ISSUE.
AND THEREFORE, A BLANK IS NOT AN ANSWER TO THE QUESTION OF YES, SIR.
SO HOW MANY OF THESE BONDS HAVE ACTUALLY BEEN ISSUED? I BELIEVE 2018 IS COMPLETELY OUT.
HOWEVER, I WOULD LIKE TO CHECK WITH, UH, UM, OUR, UH, FINANCIAL SERVICES DEPARTMENT, UH, TO MAKE SURE THAT WE HAVE THE RIGHT ANSWER.
AND IN THE, UM, IN THE, THE SECOND 350 MILLION YES, SIR.
I'M GATHERING FROM THE WAY YOU PRESENTED IT, THAT YOU ARE, UM, PLANNING TO HAVE SPENT THAT BY FISCAL YEAR 27.
WE ARE PLANNING TO HAVE AWARDED IT.
UM, IF WE ARE ACQUIRING PROPERTIES, THEN WE CAN SPEND THAT THE NEXT DAY.
UM, IF WE ARE INVESTING IN CONSTRUCTION, THAT THAT IS GONNA TAKE ABOUT 18 MONTHS.
UH, I THINK THAT OUR OVERALL SPEND PLAN TO THE LAST DOLLAR OUT THE DOOR, UH, WOULD BE, UH, THE END OF FISCAL 28.
BUT IN ORDER TO ENTER INTO THOSE CONTRACTS, YOU HAVE TO HAVE THE, WE HAVE TO HAVE THE MONEY.
SO PRESUMABLY YOU ARE EITHER ISSUING THE BONDS OR YOU'RE DOING REIMBURSEMENT RESOLUTIONS.
AND WHEN YOU INVEST IN LAND AND THEN ENTER INTO A CONTRACT WITH DEVELOPERS YES.
UH, TO BUILD AND, UH, YOU'RE TRYING TO ACHIEVE MORE AFFORDABLE HOUSING BY UNDER UNDERWRITING THE COST, THEN WHO, WHO ENDS UP OWNING THE LAND? GREAT QUESTION.
UM, SO AS THE HOUSING FINANCE CORPORATION, AUSTIN HOUSING FINANCE CORPORATION, WE HAVE THE POWER TO ABATE TAXES IN THREE WAYS.
UM, SO FOR ANY PROPERTY WHERE WE ARE A PARTNER, UM, WE CAN BE THE GROUND LESSOR AS WELL AS A, UH, THE GENERAL PARTNER FOR THE DEVELOPMENT.
UM, AND THAT WOULD ABATE TAXES FOR BOTH THE PROPERTY AND THE GROUND.
THE SECOND IS, UH, IF WE ARE NOT PART OF THE DEVELOPMENT, BUT WE ARE JUST THE GROUND LESSOR, THEN THAT WOULD BE SIMILAR TO OUR COMMUNITY LAND TRUSTS.
THE DEVELOPER OWNS THE BUILDING, THEY PAY US A FEE.
UM, AND NORMALLY THAT IS NEGOTIATED AT THE BEGINNING, UH, AND IT IS REDUCED BECAUSE WE ARE PROVIDING AFFORDABLE HOUSING.
UM, AND THEN THE THIRD WAY IS THAT A GENERAL, AS A GENERAL CONTRACTOR, WE CAN ACTUALLY ABATE, UH, UM, SALES TAXES, UH, FOR THE ENTIRE PROPERTY.
UH, AND THAT'S SOMETHING THAT WE'RE LOOKING TO EXPAND ON, UH, HOW WE CAN SPEND LESS, UH, ON EACH OF THESE DEVELOPMENTS.
SO IN PERPETUITY, WHO OWNS THE LAND? UH, IF THE CITY OWNS THE LAND, THE CITY OWNS THE LAND.
UM, IF THE, IF IT IS A DEVELOPMENT THAT WE'RE JUST INVESTING IN, THEN WE ARE NOT PART OF THE LAND OWNERS.
UM, BUT, UH, WE ARE, WE WOULD HAVE A, UM, A DEED AND A RESTRICTIVE COVENANT ON THOSE.
IN THE PERMANENT SUPPORTIVE HOUSING.
UH, I KNOW YOU, YOU'RE PRIMARILY FOCUSED ON, UH, WITH THESE BONDS GETTING THE FACILITIES BUILT.
BUT IF YOU, I THINK YOU, YOU JUST POINTED OUT THE COST OF THE PERMANENT SUPPORTIVE HOUSING PROVIDING THAT SUPPORT PART OF PERMANENT SUPPORTIVE HOUSING.
I THINK YOU SAYS ABOUT 35,000 A YEAR PER OCCUPANT, PER DID I UNDERSTAND THAT, PER UNIT PER YEAR? YES, SIR.
AND THAT IS PROVIDED BY CONTRACT, TYPICALLY WITH NONPROFITS, THE SERVICES ARE PROVIDED, UH, TYPICALLY THROUGH NONPROFITS.
UM, THE OPERATING EXPENSE, THE VOUCHERS, UH, THAT WOULD EITHER BE THE HOUSING AUTHORITY OR, UH, WE HAVE OUR LOCAL HOUSING VOUCHER PROGRAM, WHICH IS, I WANNA SAY IT'S RIGHT AROUND 300, MAYBE 350, UH, VOUCHERS THAT WE HAVE AWARDED AND ARE CURRENTLY PAYING OUT, THAT IS FINANCED THROUGH OUR HOUSING TRUST FUND.
AND THE 20,000, THAT'S, UH, HOMELESS STRATEGY OFFICE.
UM, I BELIEVE THAT'S, UH, GENERAL FUND.
AND WHAT IS THE STATUS OF THAT FUND FUNDING, UM, MANUAL BASIS? I WOULD'VE TO ASK.
[00:35:01]
THAT THIS IS PROBABLY NOT A QUESTION THAT THERE'S AN ANSWER TO, BUT HOW IS THE FREEZING OF FEDERAL GRANT FUNDS IMPACTING ALL OF THE ABOVE? ALL OF THE ABOVE.UM, I CAN SAY THAT THERE IS, THERE'S SOME CONFUSION.
UM, IN FACT, UH, WE JUST, I JUST READ AN ARTICLE TODAY THAT, UH, UM, FOUNDATION COMMUNITIES, A DEVELOP A DEVELOPER THAT WE PARTNER WITH A LOT, UH, ON MANY OF THEIR PROPERTIES AND PROVIDE GAP FINANCING, UH, HAD SOME OF THEIR, THEIR FUNDING FROZEN.
UM, TO ME, FOR, FOR OUR PURPOSES, WHAT THAT, WHAT THAT MEANS IS THAT OUR AWARDS ARE PROBABLY GONNA GET BIGGER.
WE'RE GONNA HAVE TO SPEND MORE PER UNIT BECAUSE THAT THERE'S NOT THAT ADDITIONAL FUNDING SOURCE AVAILABLE.
UM, UH, WE HAVE NEVER REALLY BEEN THAT RELIANT ON FEDERAL FUNDS, BUT THE, THE TENTACLES STRETCH VERY, VERY FAR WITH THOSE, UH, WITH THOSE DOLLARS.
SO, UH, AND I THINK WE'RE, WE'RE REALLY NOT ENTIRELY, WE'RE VERY, WE'RE VERY MUCH AT THE BEGINNING OF FINDING OUT WHAT THIS ALL MEANS.
SO THE CITY IS, UM, NOW, AND I SAY THE CITY LOOSELY, I DON'T KNOW WHETHER IT'S THE HOUSING FINANCE CORPORATION OR THE CITY OF AUSTIN OR WHATEVER, OWNING PROPERTY THAT SOMEONE ELSE IS PROVIDING SUPPORTIVE SERVICES ON.
AND, UH, THE, THE SOMEONE ELSE WHO'S PROVIDING THAT SUPPORTIVE SERVICE HAS THEIR OWN STREAM OF REVENUE.
UH, PART OF WHICH MAY BE BEING PROVIDED BY THE CITY.
WHAT HAPPENS IF THEY GO AWAY? YEAH.
UM, THAT'S ONE OF THE REASONS WHY WE, WE ARE TRYING TO BE VERY INTENTIONAL ABOUT, UH, ALL OF OUR PERMANENT SUPPORTIVE HOUSING.
UH, WE HAVE, LIKE I SAID, WE HAVE THE THREE HOTELS PLUS ESP SPARROW.
UM, AND BETWEEN THE FOUR OF THOSE DEVELOPMENTS, THAT'S ABOUT 500 UNITS.
UM, AND THERE ARE, WE HAVE FOUR DIFFERENT, UH, SERVICE PROVIDERS, UM, ON EACH OF THOSE.
UH, AND EACH OF THOSE SERVICE PROVIDERS ARE ALSO PART OF THE OWNERSHIP STRUCTURE.
UM, WE ALSO HAVE, UH, TRAVIS COUNTY HAS INVESTED THEIR ARPA FUNDS INTO ANOTHER SEVEN DIFFERENT PROPERTIES PROVIDING PERMANENT SUPPORTIVE HOUSING.
UM, AND WE'VE INVESTED IN THOSE AS WELL.
UM, THE SERVICE DOLLARS ARE, ARE A QUESTION.
UM, BUT AGAIN, I BELIEVE I WOULD POINT TO HSO FOR THAT.
UM, UH, IT'S ALMOST ON FAITH
UM, BUT, UH, RIGHT NOW WE ARE FOCUSING ON BUILDING THE UNITS, UH, FROM MY PERSPECTIVE.
SO HOW DOES, HOW DOES THAT AFFECT YOUR STRATEGY GOING FORWARD IN TERMS OF HOW MUCH ARE YOU GONNA PUT INTO PERMANENT SUPPORTIVE HOUSING YES.
VERSUS OTHER, OTHER WAYS OF PROVIDING AFFORDABLE HOUSING THAT DOESN'T REQUIRE THE SUPPORTIVE SERVICES? RIGHT.
UM, I WILL SAY THAT THE ONE, THERE'S ONE LARGE SOURCE OF, UH, FUNDING THAT WE HAVE RELIED ON FOR PERMANENT SUPPORTIVE HOUSING, AND THAT'S THE LOW INCOME HOUSING TAX CREDIT.
UH, THE 9% SPECIFICALLY, UM, LEARNED RECENTLY THAT, UH, TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS IN THE, UH, UH, WHAT, WHAT THEY CALL THE QAP, THE RULE BOOK FOR THE LOW INCOME HOUSING TAX CREDITS, UM, UH, SAID THAT THEY WILL ONLY FUND ONE PERMANENT SUPPORT OF HOUSING DEVELOPMENT PER REGION PER YEAR.
THAT PUTS A SERIOUS, UH, UH, CRAMP ON, ON OUR FUNDING, UH, OUR DECISIONS, UM, BECAUSE WE HAVE MULTIPLE PSH PROPERTIES THAT ARE REQUESTING FUNDING, BUT IF WE'RE ONLY GETTING ONE TAX CREDIT, THAT KINDA LIMITS HOW, WHERE WE CAN INVEST AND HOW WE CAN INVEST.
AND WHEN YOU SAY YOU HAVE MULTIPLE PERMANENT SUPPORTIVE HOUSING, YOU MEAN APPLICATIONS IN THE PIPELINE? YES, SIR.
UM, FINALLY, ONE OF THE QUESTIONS THAT WE ASK, UM, DURING THE, UM, SESSION THAT WE HAD WITH DEPARTMENTS AFTER THE BUDGET ADOPTION MM-HMM
UM, THESE PERMANENT SUPPORTIVE HOUSING, UH, UNITS THAT WE HAVE, WE HAVE PEOPLE IN VARYING AGES.
UM, WHAT IS THE PLAN FOR THOSE WHO AGE OUT OF PERMANENT SUPPORTIVE HOUSING? SO WE, UH, WE PARTNER WITH FAMILY ELDER CARE, UM,
[00:40:01]
AND THEY MANAGE, UH, ONE OF OUR PROPER, ONE OF OUR HOTEL PROPERTIES.THEY ALSO HAVE, UH, A PROPERTY THAT IS, UH, CURRENTLY EITHER IT'S CURRENTLY UNDER DEVELOPMENT OR IT'S ABOUT TO CLOSE ON ITS FINANCING.
UM, THEY ARE BUILDING THEIR CAPACITY AS, UH, UH, HOUSING PROVIDERS.
UM, IF SOMEONE IS, UH, ELDERLY OR IN, UH, UH, IN A NON-FAMILY ELDER CARE DEVELOPMENT, I DO NOT BELIEVE THAT THERE'S ANY REQUIREMENT THAT THEY HAVE TO BE BELOW A CERTAIN AGE.
UM, IF THEY WANT TO STAY THERE, THEY CAN THESE YEAH.
BUT THOSE PERMANENT SUPPORTIVE HOUSING DO NOT OFFER, UH, THEY'RE SUPPORTIVE, BUT THEY DO NOT OFFER THE CARE THAT, UH, FOR, FOR INSTANCE MM-HMM
UM, AND THAT, THAT IS A DIFFERENT LEVEL OF, OF SERVICE.
UM, IF A ONCE AN INDIVIDUAL IS IN PERMANENT SUPPORTIVE HOUSING, IT'S JUST LIKE ANY OTHER HOUSING UNIT.
UM, IF THEY WANNA RENEW THEIR LEASE, THEY'RE WELCOME TO.
UM, AS THEY BECOME MORE STABLE, UH, IF THEY DO START BRINGING IN REVENUE OR BRINGING IN INCOME, UM, THEN THEIR VOUCHER WOULD STILL EX STILL BE THERE, BUT THEY WOULD PAY 30% OF THEIR INCOME TO LOWER THE COST OF THAT VOUCHER.
UM, IF SOMEONE DOES NEED TO LEAVE, IF SOMEONE NEEDS, UH, NEEDS TO, UH, FIND A DIFFERENT DEVELOPMENT OR A DIFFERENT PROPERTY WITH, WITH DIFFERENT SERVICES BECAUSE OF AGE OR INFIRMITY, UM, THAT'S NOT NECESSARILY SOMETHING THAT WOULD IMPACT THEIR LEASE.
UM, THAT WOULD JUST BE, UH, A DECISION THAT THEY MAKE TO RELOCATE A DECISION.
THEY MAKE A, UH, A DECISION THAT THE INDIVIDUAL WOULD MAKE TO RELOCATE THE, UH, UM, BECAUSE AS A SERVICE PROVIDER, WE'RE PROVIDING A LEVEL OF SERVICE, BUT IF THE INDIVIDUAL, I SAY WE, BUT NOT ME, UH, AS AN IN, BUT IF THE INDIVIDUAL NEEDS A DIFFERENT TYPE OF SERVICE, UM, THAT IS NOT PROVIDED THROUGH THE PERMANENT SUPPORTIVE HOUSING PROGRAMS, UH, THEN YES, IT WOULD BE THEIR DECISION, THEIR, UH, THEIR CALL.
AND I'M NOT SURE HOW THAT WOULD BE FUNDED.
UM, BUT FROM A HOUSING PROVIDER STANDPOINT, WE WOULDN'T WANT TO TRAP ANYONE HERE.
BUT WE ALSO DON'T WANT TO, UM, WE'RE NOT GOING TO KICK ANYONE OUT.
THAT HAS NOT PLAYED OUT WELL IN OTHER PARTS OF THE COUNTRY.
AND IT, IT, IT SEEMS, UM, LIKE A GAP NOT TO CONSIDER HOW YOU HANDLE THAT SITUATION, WHICH IS CLEARLY, ALMOST CERTAINLY TO DEVELOP OVER TIME.
UM, AND THAT IS, UNFORTUNATELY, WE HAVE, UH, WITH LIMITED RESOURCES AND LIMITED, UH, LIMITED BANDWIDTH, WE, WE TRY TO ADDRESS THE NEEDS THAT ARE AVAILABLE THAT WE CAN NOW, UM, IT IS AN ISSUE THAT IS GOING TO, UM, RISE UP.
UM, AND, UH, WE TALK ABOUT THESE SPENDING CLIFFS THAT WE KEEP HEADING OVER.
UM, AND THAT'S ONE THAT I DON'T THINK ANYBODY'S REALLY TALKED ABOUT YET.
SO THANK YOU FOR BRINGING THAT UP,
I MEAN, IT'S A, IT'S, IT'S A SERIOUS, IT'S A CONCERN.
IT IS A SERIOUS, SERIOUS CONCERN.
AND WHO, WHO AT THAT POINT IN TIME MM-HMM
THE NONPROFIT WHO IS MANAGING THE SUPPORTIVE SERVICE, OR THE CITY WHO OWNS THE PROPERTY, AND YOU HAVE A RESIDENT CLEARLY IN NEED OF MEDICAL CARE WITH NO PLACE TO GO MM-HMM
AND NO, IN NO FUNDING TO PAY FOR IT.
I WILL SAY THAT OUR, UH, THE SERVICE PROVIDERS DO, UH, COORDINATE, UH, WITH THE CLIENTS TO, UH, UM, APPLY FOR SOCIAL SECURITY, MEDICARE, MEDICAID, UM, SO GETTING ON THE BOOKS, GETTING, UH, FINDING ACCESS TO THAT FEDERAL DOLLARS, THAT'S PART OF THE SUPPORTIVE, CORRECT.
BUT I THINK YOU'RE TALKING ABOUT A VERY SPECIFIC MOMENT IN TIME WHERE AN INDIVIDUAL IS NO LONGER ABLE TO CARE FOR THEMSELVES, HAS, UH, UM, PROGRESSED TO THE POINT WHERE THEY'RE NO LONGER BENEFITING FROM THE SERVICES ON SITE.
UM, AND, UH, HAS NO PLACE TO GO, HAS NOWHERE TO GO, AND I'M NOT, I DON'T KNOW WHAT TO DO WITH THAT.
THAT WAS THE ANSWER AT THE TIME OF THE BUDGET DISCUSSION AS WELL.
I DON'T KNOW WHAT TO DO WITH IT.
WE DON'T HAVE AN ANSWER FOR THAT.
UH, THE ONLY WAY, YOU KNOW, THE ONLY WAY I KNOW TO IS TO KEEP ASKING THAT QUESTION.
HOPEFULLY SOMEBODY IS DEVELOPING AN ANSWER.
QUICK QUESTION ON, UH, THE POTENTIAL
[00:45:01]
LIKE 2026 BOND PACKAGE.AND HOW Y'ALL ARE APPROACHING THAT, AND YOU'VE, YOU KINDA USE THESE CONSISTENT BUCKETS, UH, FOR THE LAST TWO CYCLES.
JUST CURIOUS, ANY, ANY CONTOURS OR INFORMATION YOU CAN SHARE? UM, WE'RE, OUR PROPOSAL IS, UH, THE SAME AS THE 2022.
WE'RE ASKING FOR THE SAME AMOUNT IN THE SAME ALLOCATION.
SO 350 OVERGROWTHS FOR SPENDING PROGRAMS,
IT HAS BEEN MUCH, BENE VERY BENEFICIAL FOR OUR BORROWERS, UM, TO HAVE A BETTER IDEA OF WHERE WE CAN SPEND MONEY, UM, AND HOW MUCH WE HAVE.
UH, SO HAVING THAT FLEXIBILITY HAS BEEN REALLY HELPFUL.
UM, JUST SAYING THAT WE HAVE $50 MILLION AVAILABLE AS OPPOSED TO, WE HAVE 40 MILLION OVER HERE, BUT IF YOU WANNA DO THIS, THEN WE HAVE 10 MILLION OVER HERE.
SO TRYING, TRYING TO, UH, MAINTAIN FLEXIBILITY WHILE, UH, ALSO PROVIDING SOME TRANSPARENCY.
UM, ON THE SLIDE ABOUT LAND ACQUISITION, YOU MADE A COMMENT ABOUT BEING RELUCTANT TO TOWARDS CERTAIN BORROWING COSTS BECAUSE OF HIGH INTEREST RATES.
AND I WAS WONDERING IF ANY OF THESE LAND ACQUISITIONS EVER GENERATE ANY CASH OR EVENTUALLY YEAH.
OR IF THEY HAVE EVENTUALLY GENERATE CASH THAT MIGHT HELP SERVICE THAT DEBT? ABSOLUTELY.
UM, SO ONCE WE DEVELOP AND, UH, START BRINGING PEOPLE IN, UM, MOST OF OUR PROPERTIES THAT ARE, WELL, ALL OF OUR PROPERTIES THAT ARE NOT PERMIT SUPPORTIVE HOUSING ARE SELF-SUSTAINING.
SO, UM, THE REV, THE RENT REVENUE PAYS FOR THE DEVELOPMENT OF THE PROPERTY AND THE MAINTENANCE AND THE STAFF AND ALL THAT.
UM, AS A PARTNER, WE'LL ALSO RECEIVE PART OF THE DEVELOPER FEE.
UM, SO, UH, IT'S A CERTAIN PORTION.
MAYBE WE'LL ALSO RECEIVE SOME OF THE, UH, CASH FLOW FROM, UM, FROM THAT REVENUE THAT GOES ABOVE AND BEYOND PROFIT.
UM, AND, UH, AS THE GROUND LESS SOAR, WE DO RECEIVE THAT INITIAL CASH PAYMENT.
SO WE COMMODITIZE THESE, FUND THESE, UH, PROPERTIES AS MUCH AS WE CAN, UM, WHILE STILL, UH, ENSURING THAT WE ARE PROVIDING DEEPLY AFFORDABLE UNITS.
UM, WHEN WE TAKE THEM OFF THE TAX ROLLS, THEY KIND OF SIT IN STASIS FOR A LITTLE WHILE.
SO THAT'S WHY WE WANNA MOVE AS QUICKLY AS POSSIBLE SO THAT WE CAN DEVELOP THEM AND PROVIDE THE HOUSING THAT WE NEED.
AT THIS POINT, IT'S REALLY JUST A CAPACITY QUESTION.
HOW QUICKLY CAN WE, UH, DEVELOP THIS PROPERTY VERSUS THIS PROPERTY, VERSUS THIS PROPERTY? HOW MANY STAFF DO WE NEED? ANY OTHER QUESTIONS? YEAH, ANYTHING? JUST A QUICK COMMENT.
COMMISSIONER ROGER, BODY UP TREMENDOUSLY IF, UM, THE DEPARTMENT PRESENTATIONS HAD SPIN DOWN CURVES THAT WE CAN TRACK TO, UM, I JUST WANTED TO THROW THAT OUT.
WAS THAT, WAS THAT A QUESTION? I'M SORRY.
I DIDN'T, I DIDN'T QUITE UNDERSTAND.
THAT WAS A STATEMENT SAYING THAT IN THE PRESENTATIONS WE'D LIKE TO HAVE SPEND DOWN CURVES SO WE CAN TRACK TOO, SPEND DOWN CURVES.
UM, I, THOSE, UH, THOSE WERE SOME SLIDES THAT WE, THAT WE TRIED TO PREPARE, I WAS NOT ABLE TO, UM, TO GET THE INFORMATION NECESSARY FOR THAT.
YEAH, I THOUGHT, I THOUGHT THE DATA PROVIDED IS, IS GOOD, BUT JUST FOR THIS BODY OF WHAT'S IN THE PURVIEW OF IT, UM, IT'S EXTREMELY HELPFUL TO KNOW WHAT'S GOING ON WITH THE BOND SPECIFICALLY.
UH, SO THAT WOULD BE FANTASTIC TO HAVE.
AND I THOUGHT THAT'S WHAT YOU WERE ADDRESSING BY SAYING THAT YOU INTENDED OVER THE NEXT THREE YEARS TO ALLOCATE, UM, OR SPEND X AMOUNT FROM EACH ONE OF THE BUCKETS SO THAT YOU ESSENTIALLY WERE SAYING THAT YOU WERE GONNA HAVE ALL THE BONDS ISSUED BY 27 WITH PERHAPS SOME OF THE MONEY STILL BEING SPENT IN 28.
IT WASN'T A SPEND DOWN CURVE, BUT IN THE NARRATIVE, I, MY UNDERSTANDING WAS THAT THAT WAS YOUR PROJECTION OF YOUR, BOTH YOUR BOND ISSUANCE AND YOUR SPENDING.
UM, SO JUST FOR, UH, FOR SOME DETAIL, WHEN WE MAKE A LOAN FOR A PROPERTY, UH, WE'VE CALCULATED IT'S ABOUT, UH, TWO YEARS TO 18 MONTHS FROM THE TIME THAT WE MAKE THE LOAN TO WHEN
[00:50:01]
THE ENTIRE LOAN IS DRAWN DOWN.UM, AND THAT'S NORMALLY AT THE VERY, YOU KNOW, AT, UH, ISSUANCE OF, UH, OF, OF, OH, WHAT IS IT CALLED WHEN YOU CAN GO INTO A BUILDING AND OCCUPY IT? CERTIFICATE OF OCCUPANCY.
UM, THE, UH, SO WE WILL, IT TAKES ABOUT TWO AND A HALF OR TWO TO TWO YEARS TO 18 MONTHS IN ORDER FOR OUR FUNDS TO BE SPENT FROM SOUP TO NUTS ON A, ON A HOUSING DEVELOPMENT.
UM, SO, BUT THEY WERE ALREADY STARTED BY THE TIME THEY COME TO US.
UM, SO THAT'S, IF WE CAN FORWARD ALLOCATE THE FY 27, UM, BONDS, OR THAT WERE PROGRAMMED FOR FY 27 TO BE SPENT IN FY 26, UH, OR TO BE AWARDED IN FY 26, THEN OUR PROJECTION IS THAT WE CAN HAVE ALL OF THE FUNDS SPENT AND, UH, OUT THE DOOR BY THE END OF FY 28.
AND, UM, I, I'M SORRY, I'M FOLLOWING UP KIND OF ON SANTIAGO'S QUESTION.
THAT THE, WOULD YOU DEFINE FORWARD ALLOCATE? IS THAT, ARE YOU TALKING ABOUT REIMBURSEMENT RESOLUTION? UM, SO IN OUR, IN OUR 2022, UH, SPEND PLAN, UM, WE SAID THAT WE WOULD DO $30 MILLION FOR LAND ACQUISITION EVERY YEAR FOR THE NEXT FIVE YEARS.
UM, AND THAT WOULD'VE BEEN $30 MILLION IN FY 27.
IF WE CAN FORWARD THE FY 27, UH, ALLOCATION SO THAT IT'S IN FY 26, THEN WE CAN DEPLOY THOSE FASTER, GET THE DOLLARS ON THE GROUND AND GET HOUSING BILLED.
SO WHAT YOU'RE SAYING IS YOU MIGHT SPEED UP YOUR, WE'D LIKE TO.
WE'D LIKE TO, BUT THAT'S A CONVERSATION THAT WE'RE CURRENTLY HAVING.
FIRST, THE FIRST QUESTION WAS WHETHER OR NOT WE COULD, UH, ALLOCATE SOME FROM FY 27 INTO THIS FISCAL YEAR, UM, WHICH IS WHAT WE'RE TAKING TO THE BOARD ON MARCH 6TH, UM, TO BRING FORWARD $30 MILLION FROM FY 27 ALLOCATION.
UM, WE ALREADY KNOW, UH, SEVERAL OF THE DEVELOPMENTS THAT ARE REQUESTING IT.
PRIMARILY IT'S THE 9% LITECH PROPERTIES.
I'M SORRY, I DO HAVE ONE LAST COMMENT.
UM, I WAS, I SPENT A LITTLE BIT OF TIME ON THE AFFORDABLE HOUSING BONDS PAGE ON AUSTIN, TEXAS.GOV YESTERDAY, AND, UM, THERE'S A TABLE ON THAT LANDING PAGE WHERE YOU SORT OF OUTLINE GOAL VERSUS COMPLETED WITH RESPECT TO, TO SOME OF THE PROJECTS THAT ARE BEING FUNDED MM-HMM
AND, UM, IT, FROM MY PERSONAL PERSPECTIVE, IT'S JUST NOT IMMEDIATELY CLEAR WHAT THAT'S MEASURING IT, IT'S JUST A NUMERIC VALUE MM-HMM
WITHOUT ANY FURTHER EXPLANATION.
UM, SO I JUST REALLY WANTED TO COMMENT THAT ANY ADDITIONAL TRANSPARENCY OR DETAIL THAT WE CAN FIND RELATED TO THAT TABLE WOULD I THINK HELPFUL.
UM, AND THAT TABLE SHOWS, UH, UM, PROGRAM AND FISCAL YEAR AND THEN NUMBERS IN EACH ONE.
IS THAT THE TABLE YOU'RE TALKING ABOUT? YEAH.
AND THEN IT'S BROKEN OUT BY, UM, BY I THINK DIFFERENT MINORITY GROUPS THAT MAY BE INFECTED.
UM, I BELIEVE THAT, UH, THAT TABLE WAS PUT TOGETHER BY OUR DISPLACEMENT PREVENTION TEAM, BUT YES, I'LL, I'LL PASS THE NOTE ALONG AND MAKE SURE THAT WE CAN GET, UH, GOOD DATA IN THERE.
I WOULD REALLY APPRECIATE THAT.
ANYTHING ELSE? ANYTHING FROM THE, FROM THE REMOTE FOLKS? OKAY.
OKAY, AMY, THANK YOU VERY MUCH.
OKAY, SO THAT COM, THAT COMPLETES OUR BASIC PROGRAM.
[FUTURE AGENDA ITEMS ]
ITEMS. NO, WE ARE TAKING SPRING BREAK NEXT MONTH.SO WE WILL CONVENE, RECONVENE IN APRIL.
ANYWAY, ANYWAY, THE, UH, THE BOND ELECTION, UH, FOR 2026.
ANY UPDATES FOR THE GROUP?
I WAS IN THE HOSPITAL IN JANUARY, BUT MY UNDERSTANDING IS THAT THE TASK FORCE PUNTED THE QUESTION OF A 25 BOND ELECTION TO NEXT WEEK, NEXT, UH, TO THE MEETING THIS WEEK.
THEY'RE STILL DISCUSSING THAT THE POTENTIAL FOR 25.
[00:55:02]
WOW.NOT SURE I CAN MANAGE TO BE IN THE HOSPITAL AGAIN.
ANY RATE IF THERE'S ANYTHING ELSE? NO, SIR.
YEAH, LET'S, UH, LET'S PUT THE ADVISORY COMMITTEE STATUS OKAY.
APRIL AGENDA ITEM JUST TO, OKAY.
SO WE DON'T, DON'T FORGET, AND I THINK NICOLE, IN JANUARY, WE'RE SUPPOSED TO GET THE CAPITAL DELIVERY SERVICES ON THE 2026 BOND.
WE CAN TRY TO HAVE THOSE FOLKS, UM, JOIN US IN APRIL.
HOPEFULLY WE CAN GET THE SCHEDULES TO ALIGN.
WE'LL HAVE ASSISTANT DIRECTOR MARCUS HAMMER, HOPEFULLY, UM, TO BE ABLE TO JOIN US ON THAT.
CHAIR, I'VE GOT, UH, ONE MORE THING TO ADD.
IF WE COULD TALK ABOUT THE, UH, CONSTRUCTION PERMITTING TIMING PROCESS.
JUST SEE IF THERE'S ANY ADDED UPDATES ON, UH, TIMING.
UM, I KNOW THIS HAS BEEN A CHALLENGE, UH, AROUND THE HORN HERE FOR A LOT OF DIFFERENT PROJECTS.
WANTED TO SEE IF THERE'S BEEN, UH, YOU KNOW, FAST IMPROVEMENTS OR STILL THE SAME OR WORSE.
YOU'RE TALKING ABOUT THE PERMITTING SCHEDULE? YEAH, THAT'S RIGHT.
AND I THINK THAT'S IN, IT'S IN CAPITAL DELIVERY SERVICES BUCKET, ISN'T IT? UM, SHOULD BE, I CAN DOUBLE CHECK THAT.
I THINK THAT'S IN DEVELOPMENT DEVELOPMENT SERVICES DEPARTMENT.
I, I'LL MAKE SURE I CAN LOOK INTO THAT.
UNLESS THERE ARE ANY OBJECTIONS, I, I THINK WE'RE ADJOURNED AT 2 59.