I'll be. I'm going to call to get well. Okay. So we're we're now recording. Okay. Very good. As Dr. Dostry Nenez, I'm here by calling the Orange and Housing Finance Corporation meeting of August the 25th, 2020 to order. And if someone would like to read the required. Reading that we need to do in order to make this legal. Due to COVID. Or are we going to skip that? This is Mindy. I think the Anderson said that we don't do that for this meeting. But if you'd like to do a roll call, I think that all of our board members have joined us. And then we can also have members of the public identify his with us as well. So I'm gonna take the call for City Council. Andrew Pio, are you present? Present. Marvin Sutton. Present. Victoria for our Myers. Present. Very good. And I understand that we also have other four members here. Is our newest member, Scott Hubon there. Yes I'm here President. Welcome sir. Thank you. And who else is on the board that's here? Anyone else? I guess not. So Jennifer Wickman and Mindy Cochran, you're both here. Very good. So first item of business is to approve the minutes from the last meeting. This was included in your packet. If there are any questions, please ask now. Otherwise, I'll entertain a motion to approve minutes. Dr. Anniha, this is Mindy. I just learned that we do need to read that the language because we're meeting online. So we can pause right now just for a moment. So we can grab a copy of it and get that housekeeping item taken care of. So we'll pause for just a moment then. So I just emailed you a copy that I think you can adapt. That sounds good. I was just pulling mine up from our housing authority and was going to use that. But we're all, I'll, I can't run with this one. So thank you for doing that. Sure. Um, hi, this is Mindy Cofford. Um, I'm staff support for the always housing finance corporation. Um, the meeting was called to order by Dr. Peel and he's also a completed real call. We're gonna go ahead and talk through the format that we're gonna use for the meeting. It's being held by telephones that we can advance the public health goal of minimizing face-to-face meetings, also known as social distancing, just low the spread of COVID-19. Governor Abbott suspended some of the requirements from the Texas ethnic meetings app, which allows us to meet in this manner. There is a public call and number, which I'm pulling up for right this day in a second. And that was 469-375-9689 with a conference ID of 811-865-538 so that the public can join should they choose to. This information along with the agenda packet was posted on the city's website. Here's some basic information about the call. It's being recorded and the recording will be posted on the city's website. There will be no voting other than approval of minutes during this meeting. All the speakers including council members should identify themselves by name every time that they speak. And we'll remind you if you forget that we'll have a full recording of the meeting and the public and understand the discussion. The presentations and other materials for the meeting were also posted online as part of the meeting packet and they're on the city's website, at www.r&contex.gov by clicking on a genesis. For all members on the call, just please be sure that you're in a quiet place where you won't be disturbed. Background noise can be very challenging. So if you're not speaking, if you could use mute, that would be very helpful. If anybody needs to leave the meeting during the call for whatever reason, if you could identify yourself and let us know, and that's also let us know when you rejoin. I believe that we have a few other people on the call other than our community and neighborhood development. I'm sorry. How are you? I'm fighting committee board. I see that we have Tim Nelson with Hilltop and Dave Petruska, legal counsel on the call as well. Are there any other members of the public on the call? Hi, Claire. I'm at with Hilltop. Sorry. Claire, I didn't see your phone number on there. Thanks for joining us. Of course. And I think that we've covered all of the items. We don't, again, we don't have anything to vote on, but we can do a roll call for discussions and make sure that everybody has an opportunity to weigh in on the agenda items. Have we got everything covered?. I cover everything Jennifer. Yes, thanks so much, Mindy. Actually, Mindy, this is Dr. for our Myers. Just a quick question. We are voting on the minutes and approval of other things. So there will be votes. Isn't that correct? Yes, we will only be approving the minutes. We won't be voting on any of the other items. Any of the items that you all wish to advance will bring to you at a future meeting in the former resolution. Thank you for the clarification. And I will turn that back over to Dr. Nini as for the approval of the minutes. And I'm sorry, this is Jennifer. If we could just at this point, if any members of the public who are on want to make a comment on this item will take comments just in one portion here. So if anyone members of the public want to comment on the minutes they can unmute and let us know that and then we can proceed with the motion and the vote. Thank you, Mendy. Are there any members of the public that would like to comment on the minutes that were posted? Are there any members of the public that would like to comment on the minutes that were posted? Hearing no comments, I'll entertain a motion to approve the minutes. Victoria for our Myers motion to approve. And I'll say. Thank you, Mark. So Marvin Victoria for our Myers made the motion is seconded by Marvin Sutton all of favor say aye aye can he pose hearing no opposition the minister approved thank you so much now move on to the next item on the agenda which which is project updates. And so who would like to take that? This is Mindy. I'll be happy to do that. If you can advance to the PowerPoint presentation that was provided to you, I'll be using that as part of our outline. So the items on your agenda are in the same order as they are in that PowerPoint presentation. So that would be, I think it'll make it things a little bit easier to follow. So slide two reiterates your outline and slide three begins the project updates. So the first project update I'd like to share is with the Elliott. When this project started, it was known as secretariat. Just to give you all some background on this as a reminder, back in February of 2017, the City Council approved a resolution of support for 9% housing tax credits for this development. And it received an award from the state, the Texas Department of Housing and Community Affairs, known as TDHCA. Got that award back in the summer of 2017. In January of 2018, the developers approached the city to talk about whether the city and the HFC would be interested in a pilot project for this development. There was an interest and the transaction actually closed in the formal partnership was created back in May of 2018. They did the construction and they began leasing in July of 2019. By way of monitoring, we received monthly financial and performance reports from the development, also conduct site visits, and to date they are current on the payments that they've made to the housing finance corporation. By way of a pilot payment and a portion of development fees. So far this has played out as expected, which is very encouraging. I'll pause for any questions, otherwise I'll move to slide four. Chair, Councilman Sutton. Yes. Miss Conquered, what's the occupancy rate on the ballot? This is Mindy, the occupancy rate has been full. They have a long waiting list for units. There are 74 units and they remain full since they achieved their release. Thank you. This is Mindy. I'll go on to slide four and this is an update on the project This is Mindy. I'll go on to slide four and this is an update on the project formerly known as Spanish Park and now known as the Paddock at Park Road. Again to provide a little history. This is a 350 unit 1960s era apartment complex that was an affordable development that was nearing the end of an affordability period and a developer known as Lincoln Avenue Capital came in and purchased this property. Their goal was to rehab it and keep these units affordable and they had two options. One was to do a fairly minor rehab or to be able to partner with the Housing Finance Corporation and do a very, very substantial rehab to this project. So they came to the Housing Finance Corporation back in October of 2018 and the Housing Finance Corporation Board approved an inducement resolution which is needed in order to apply for bonds. City Council approved a resolution of no objection for 4% housing tax credits also in October of 2018 and then fast forwarding to April of 2019, the Housing Finance Corporation approved a memorandum of understanding which was the basis of forming the partnership documents which were approved in fall of 2019. The developer and their team stood in line in August of 2019 for an allocation of private activity bonds, which they received. And this transaction closed in December of 2019, and they started the rehab that same month. The rehab is a head of schedule actually right now and they anticipate completion in fall, November of 2019. So I'm on slide five now. Through July, 235 units have been rehabed and 85% of the site work is complete. The building exterior is complete on 20 of the building and they started demolishing the clubhouse. There's a lot of work being done here and through June they had 6.35% of the spend was through an MWBE firm. They were working aggressively to increase that. They had one pretty substantial contractor that was an MWBE firm that was not able to perform as expected under their contract. So they did lose a little MWBE spend but they are working also with the city on replacing that contractor with another MWBE contractor. And again, I'll pause here and take any questions. And any doubt, or maybe yes. Question, when this is all set and done, what percentage of the units are set aside for those residents who fall below certain adjusted median income. 100% of the 350 units will be affordable units for those earning under 60% of the area median income. Thank you for that information. Any other questions? Chair, Councilor Dices. Marvin, you go for this Marvin Sutton go ahead. Thanks, Chair. Ms. Cochran on the MWBE spend. Can that be broken down further into Hispanic, African-Americans, Asians, and other? I can request, I can start, this is Mindy, I can certainly request that information for you. And I understand they're aggressively trying to be inclusive and utilizing MWB firms. Is that correct? That's correct. TDAHC fires a goal of, I believe 30 30% they're nowhere near that at this time but they're working aggressively to increase that. Mr. Hill thank you. I'm Mindy I don't I don't know if this is the appropriate place to discuss this but you know these rehab projects are very very attractive to me personally. And we have discussed them as a committee before. Is there any opportunities coming up for other rehab projects of older properties? Because we seem to be getting a large number of new proposed projects. And I have more hesitation on new projects as opposed to rehabs of older substandard properties. So I'm just wondering how the outreach to the developer community is going regarding that kind of rehab. This is Mindy again. We consistently steer the developers towards rehab, recognizing that that's a primary goal of City Council as well as the Housing Finance Corporation Board. They just are not finding the opportunities because a lot of these older apartments, they're still generating good cash flow. And so they're very, very expensive to purchase and then to turn around and rehab. We've provided the list of code, high code violating complexes to developers to see if that might be some low hanging fruit. And just recently I requested high code violation multi family, I'm sorry, commercial properties as well, to see if there's maybe an opportunity for conversion of something that's commercial that could in the future be residential. As we saw with the Kestrelon Cooper development. So we are driving in that direction, it's just very difficult to find the right opportunity. Good question. Mr. Chair. Chair records has this councilwoman Victoria for our Mars. Thank you. Mindy, you said that you had put together a list on both of those things. Could you be possible to share that data with the committee? This is Mindy. Yes, I sure can. I have the list of multi family and I requested that the commercial and and when I received that, I can share that. Thank you, Mindy. Thank you, Mr. This is Mindy again. I would also add on the Paddock at Park Row because they're turning units and as they have units available, they've been fantastic to work with us to try and lease some of the folks that are more challenging to lease during this environment. Folks that have been evicted and have more challenging credit because of that. So they've been working with the housing authority to do that. Folks that are living in extended stay hotels that through one or combination of some of our housing programs, we can get permanently housed and they've been fantastic and letting us know whenever they have a unit ready for lease. So we really appreciate the partnership that this has become. If there's no other questions, I'll move on to slides 6 and then 7, which is we've a request for an easement at the Patek of Park Row. There's a, we've been approached by a group called Vanyan Court Capital and they're intending to develop student housing adjacent to the Pdock of Park Row to the east. You can see that would a lot there to the east on that second picture. So based on discussions with the city planning staff, their plans will require two easements from the paddock at Park Row to benefit that new development. One is a utility easement that would allow the new project to tap into the existing water line that runs beneath the paddock site, a pipeline drive and that's kind of outlined in that by that red circle. And the second is actually an access easement that would be used exclusively for fire service vehicles as a secondary ingress and egress point to the Vanyan project. It would not be used for any residents there to access the development. The next slide, slide eight, gives a little more detail about where those accesses would be. All costs associated with the construction work related to the easement would be paid for by the Vanyam project. Further, the developer and the HFC and I'm sorry not the HFC the developer has stipulated that any acceptance of the easement would be conditioned on two things. One would be a negotiated fee paid by the BANYM project to the Patagon Park Road ownership group to compensate for any higher professionals that were needed to complete this process and also for time and efforts. The second stipulation would be that the access agreement could not lead to any displacement of the existing parking at Catechic Park Road. The initial analysis conducted by Lincoln Avenue Capitol shows that the proposed easement would result in the loss of one parking space. However, we think that we can recover that by rearranging where the dumpsters are currently located. So we would have no net loss of parking. And if the Banyan project agrees to these terms, that they'll engage a surveyor to do a more detailed analysis and confirm the assumptions that we've just discussed and they would create a specific legal description. And then if that was agreeable to the HFC board, we would bring back a resolution during our next meeting for your approval. And again, I'll pause for any questions. Well, this is Dr. Minyas. Ms. Cochran, can you tell the board that land of the east that you're showing on slide eight? How's that presently zoned? I don't know, actually, but I can find out for you. I also heard you make a comment that the developer is considering putting in, quote, student housing. Is that what I heard you say? That's correct. Wow. Well, that's that could be somewhat potentially problematic in itself. And so nothing will happen unless I get their zoning approved. zoning approved? Oh, of course. Yes. And that was the reason for the question. Does anybody know what this is zone or that? Is it already zone multi family? And are they going to build by right? Or are they going to have to go through the. Your city council to get permission. That's why I asked that question. So any other questions? Mr. President, it's Victoria. Yes,'am go ahead. Thank you Mindy. First question was about the zoning but the second question is on the egress only are you talking about them using a knockbox and do they have two entrances or is this the second entrance? or is this the second entrance? This is Mindy. This would be the second entrance for fire emergency online. So do they have a proper egress and ingress to handle the traffic that they proposed to do? And I believe it's on the, either the north or the east side. I'm not certain on that. I'd like to, Mr. President, and Mindy, I would like more information regarding this before we proceed on providing input not only understanding the zoning, but I'd really like to understand the anger as an ingress of this property before we authorize the use of an easement for our knockbox. Well, I'm not ultimately opposed to that. I just want to make sure that the property itself has its own sustainable usage before we work out a deal with them on a easement on our property. Thank you. I agree with that. Any other comments from the board? For questions? This is Mindy. I just pulled up the zoning and it appeared that that site is zoned. Rm. 22. So it's by right. Wow, okay. I do not know how far east that property goes, but the part that is adjacent to the paddock at Park Row is zoned multi-famous. I certainly get some additional detail about that project. Uh, yes. And I agree with Councilwoman for our minors. I would like more information before we go down the approval process. Student housing, uh, may not able to see the city council. I'm not sure if you're going to see the city council. I'm not sure if you're going to see the city council. I'm not sure if you're going to see the city council. I'm not sure if you're going to see the city council. I'm not sure if you're going to see the city council. I'm not sure if you're going to see the city council. I'm on to slide nine and then immediately following slide 10. This is just again an update on the mortgage credit certificate program. This program was approved by the Housing Finance Corporation in the spring of 2019 and the program was launched in August of 2019. It's a function of the federal income tax program and it provides a credit on a home buyer's federal taxes up to 30% of the annual interest that was paid with a limit of $2,000. You can continue to use that credit as long as the homeowner owns that home. It can help homeowners qualify for a mortgage by changing the deductions on their payroll. On slide 11, it's just a brief example of how the mortgage credit certificate program works. And this program can be used with other down payment programs like neighborhood lift and the Allington Homebuyer Assistance Program. Slide 12 is just a reminder of the eligibility income limits for this program fairly high compared to most homebuyer assistance programs. and there's also a purchase price limit and non-targeted areas of 356,000. That targeted area while there is a higher limit there, it's, I believe it's two census tracks in Arlington which are mostly industrial and have very little residential so that doesn't really come into play on our program. Looking on slide 13, this gives the history of the mortgage credit certificate program over the past several years that the housing finance corporation has had. The 2019, sorry, the most recent program other than the current program, the 2015 program, 22 loans were made through that program and that was about 46% utilization of that 2015 program. The 2019 program, which is our current program, we have not, unless there's been something recent and Tim or Claire can correct me, we haven't closed any loans yet on that program. And I'll explain why here in the next couple of slides. Slide 14, just as a reminder, while the primary goal of the mortgage credit certificate program is to assist home buyers and purchasing a home, there's a secondary goal is to recover costs that the housing finance corporation incurred to create this program and also have the opportunity to generate a little bit of revenue to use for other affordable housing programs within the housing finance corporation. So we anticipated this program would have between 55 and 62 loans. There's a thousand dollar fee that's paid by a home buyer to participate in this program. We incurred upfront legal and financial advisor fees of $37,500 to create the program and as each loan closes a portion of that payment from the home buyer pays the remaining trailing fees of 12,500. So depending on how many loans are closed, the housing finance corporation that earned between five and twelve thousand dollars of revenue from this program. I mentioned that we are very underutilized and slide 15 share some other reasons for that. The Texas Department of Housing and Community Affairs, which is TDHCA, and the Texas State Affordable Housing Corporation, known as T-Shack, TSHAC, TSHC, both have state-by-programs that are competitors to our program, and they provide a little bit better of a benefit to the home buyer. So the first chart shows the program fees, and our program fees are substantially higher than program fees and our program fees are substantially higher than program fees. So if I'm looking to participate as a home buyer in a program, I'm more likely right off the bat to look at one of these other two programs. And I suspect one of the reasons that their fees are lower is because they're much, much larger programs so they've got much greater scale than our program does. programs so they've got much greater scale than our program does. The credit percentage were fairly competitive there but the other two programs both have a down payment assistance component. So TDHCA provides a down payment of 4% of the mortgage amount and the T-Shack program has up to 5% of the mortgage amount and it's provided in the form of a grant or a forgivable loan depending on the program. So that is something that I wanted to bring to the board to have a conversation about whether you have an interest in providing a down payment assistant component program, which would make our money move very quickly. Dave Petruska can chime in, but I believe Garland recently added a down payment component to their program because they were seeing the same little that we are. And Dave, actually what happened is Garland's program closed after your program for the same amount and they've already gone through the entire amount and started a new program as of two weeks ago because of the down payment assistance. They had down payment assistance in their prior programs before the last couple of times. They blew through that money in less than a year. They don't miss loans. Payable back because they have two theories. One of which is they do the multifamily programs to create funds to help people buy single family homes. Secondly, they try to recycle the money as much as possible. So that's why they do loans payable back by the people over a certain period of time. So this is Mindy again. So I want to open, move to slide 16 to talk to you a couple of variables and then refer back to the board for a discussion about whether or not this is an activity that you would like to entertain and if so we can bring a resolution back to the board at our next meeting to formalize that. So on 16 slide 16 of a couple of the variables that you might consider in a down payment assistance program would be first and foremost the amount of down payment assistance. It could be structured as a fixed amount or as a percentage of the mortgage. If it's structured as a fixed amount, that allows you to control costs because you would know exactly how much potential funding you would be providing based on the number of loans that you authorize this for. It may not be competitive though if we have another program that has a percentage of the mortgage is it scales with the loan size. So obviously a lower, a smaller loan would have less down payment assistance. A larger loan would have greater down payment assistance if you use a percentage basis. One downside to that is that it could theoretically be providing less benefit to a lower income household that has a smaller home purchase. So those are two options that you could look at there. You could also look at the number that you assisted and again to control your costs. So you could potentially, you could say a number. So for example, you might say the first 20 loans that will provide down payment assistance and the rest we would not. Or if you wanted to allocate additional dollars to it, you could certainly serve all of the applicants that apply. A third variable would be the type of assistance, as Mr. Chris Horska mentioned. Another having finance corporation wants to recycle their dollars. You could do that as well. It could strictly be a repayable assistance that's provided or you could stage that. So I put an example out there. Don't have some fire under 60% or even 80% of AMI. It could be provided in the form of a grant. They do not repay that. It could be a forgivable loan as we do with our housing rehab and home buyer assistance program that are provided through federal grants. If the household lives in the home for a certain number of years, it's forgivable over time, or it could be provided in the form of a repable loan. There's all kinds of structures that we could come up with for a repayable loan. That could be repayable only for those over 80% of the area median income, or they could be repayable for those over 120% of the area median. So there's a lot of variables and I'll pause there for some of the second. This is a new year. This is board member Helblum. I had two questions about this. Could I ask both of them at once? Yes sir, go ahead. Okay, the first question I had was, just the general strategy for the mortgage credit certificate program within Arlington is the general strategy for the mortgage credit certificate program within Arlington is is the general idea that Having home ownership increases better for the community and increases home value and just the general welfare of Arlington is that I'm just trying to think through this the last few days is having a program like this strategy from the city council's perspective and the mayor's perspective is that in general are those trends true. Scott, this is Dr. Minyas. Let's take that first question and I'm in and I'll invite others to chime in after me. This is my perspective. And you know, city councils may all have different perspectives, but I, it's my belief that city council has been struggling with this concept of what's the best use of the land within Arlington? And we have a limited amount of land left. And we get criticized rightfully so in my opinion, when we continue to approve a lot of multi-family product to be built in Arlington, especially when we build it on, the land is on a community commercial or industrial. But I keep hearing over and over the following comment. We want to keep our young entrepreneurs and graduate from UTA that are bright, have want to start businesses. When they look around Arlington to try and find an affordable place to live in a single family environment, they're either outpriced because they just graduated and they're starting their businesses, or what's available is old and run down. So, the comment that was made a little while ago, they take their multi-family income to promote single-family programs. In my opinion, this is a mortgage credit program. It's something that's a very useful tool if we could use it correctly to promote those young people that are coming out of college, starting their businesses, starting their jobs in the low end of the wedge-kill, to attract them to stay in Arlington. And I think that's, in my opinion, that's a lot of goal. And so I'll stop there and ask for other input. I guess my thoughts are there's a demand for housing in Arlington and my preference would be a combination of both. I know when I first moved to the area I moved into the apartment because it was needed. I was seeing a lot of time. And then as my family grew the demand for some stability in housing and that ownership took place. I think most people, depending on their situation, may lean towards some housing requirements that are apartment or multifamily. I'm a part of the department, a multi-family. And as I look around now seem like the layout in just my particular district is home ownership was the trend back then, but I think that trend is changing. Most people don't want to deal with the costs associated with owning a home. Some would love to have that home feeling that long term stability in the community ownership in the community. So I believe a combination of both are needed. I think this MCC is a good program to get that feel for people who do want the long-term commitment in the community and then you have the temporary where we're transitioning in our careers. So I think a combination of both are needed. careers. So I think a combination of both are needed. Other comments? Scott, you have a second question. And then yeah, thank you. I appreciate that. I'm just new to the new to the organization here and I'm trying to kind of get a feeling for some of the strategies on employing these and some of the thoughts. So I appreciate the input. The second question I had on slide 15 and it was going to be directed. I think the in this caulkern waited the rest of the board members won't when the I'm trying to make sure I understand and I don't have any background on it. Why did why did Are you muted, Mindy? Sorry about that. This is Mindy. That's a great question and the answer is really easy. We weren't generating revenue. The housing finance corporation has done two multifamily projects. They've both been done very, very recently. And now that we see that they are generating revenue and you'll see that in our just budget discussions here coming up shortly, we now have the ability to do that. So this is something that we can now we can afford to do with certainty. And if we have another multifamily project in the next year or two, we could continue to do something like this. Okay, that makes sense. Thank you. This is Dr. Nunez again. On slide 16, the down payment of the system options. For the kind of discussion that we're having today, I know that there's no way in the world I'm going to pick one of these things. I think what will end up happening is that it's a combination of things and I think the other thing is that I think that what will happen is we'll come back and revisit these down payment system options and probably change as we go forward. I, I'm gonna ask my fellow board members to chime in, but because I really wanna hear your opinions, but my opinion right now is I think we need to do something. I think we do need a down payment assistant option, but I'm not sure exactly which pathway to go. So I'm gonna call Mr. Peel and then Mr. Sutton and then Victoria for our Mars and Scott to end up with. So Andy, what do you think? And you meet, there you go. I guess when it comes to down payment assistance, there were some comments made earlier by I guess our legal counsel regarding other jurisdictions, quote unquote, blowing through their money really quickly. And that gave me pause. I was wondering if we could, I mean, I just want to be careful if we consider this and the idea, I guess it was Garland or Grand Prairie, you know, blowing through our money real quickly. Can somebody kind of feel, you know, clarify that for me? Mr. Piers. This is, this is Dave. When I'm said blowing through their money, I'm meant blowing through their allocation of the mortgage credit certificates, not their own personal bank. So, meaning they're able to use the money at the start of a distance? Yeah, they utilize the $10 million availability, same availability that you all had, and they used it in about a year, and you haven't used any at all. And let me add one other thing too, before you all talk about some more, what we've learned with these kinds of programs is, most first time home buyers are fairly unsophisticated and pretty scared. So the simpler you can make the program for them, more likely it is, it'll be successful and they'll enjoy the use of it. As an example, if I'm a loan officer and I'm sitting there saying, well, if you buy a house worth X, you get so much down payment. If it's Y, you get more down payment. If it's Z, you get less. It's a whole lot easier to just have a fixed amount and say, this is what you get, period. And that's just from experience from the various programs that we've done over the years. So. Well, from that point of view, you know, I think that Arlington's existential challenge is it's aging housing product that needs to have new families come in and, you know, and spend their own time and money fixing them up. And I do think first-time homeowners generally have a lot of pride in that first-time home and our wonderful resources for fixing up those houses. And I also agree with the idea of retaining 3 to 5% of UTR-lington graduates. That being said, if we did this, I think that the proper way to go and my humble opinion is the forgivable loan. I think that I want people to stick with it and have some skin in the game and only it be able to get a full down payment loan forgiveness if they stay in the property and have an incentive to fix it up over a period of time. This is Mindy. I'd like to add two items. One is to Mr. Peele's concern about the use of funds. We can very easily control the amount that would be spent on this program. So for example, if, as Mr. Fertrushka suggested, we used a flat amount of $7,500. You could allocate funding for 20 loans to receive $7,500. After 20 loans had utilized that down payment assistance, there would be no other funds allocated for it, so you could very easily control the amount of the corporations funds that were used. The other comment I wanted to make with Mr. Bohem's question about is it's a goal to increase homeownership? One of the single most ways to increase wealth in a family is through homeownership. So that's one of the reasons that homeownership is promoted. It allows people to create wealth very, very simply just through that homeownership behuckle. Also studies will show that homeowners make better neighbors than renters. Again, because they have pride in their home, they take care of those homes better than a renterwood or landlord that lives out of statewood. So those are kind of two primary drivers for encouraging homeownership. Thank you, many of those are, I kind of wanted to get that. That's what I had gathered too, but it was making sure I was consistent with what the board thought. Marvin, it's Marvin than any of the thoughts, sir. President, yes, could I, I wanted to ask Mindy one more thing. Go ahead. The way I think I understand the program works with the. The funding in 2019. It's only usable is it for two years? That's true. That's correct. Okay. Okay. And then is there a follow-on if you I think what I heard from the legal council, if you allocate all of the funding you currently have, there's an opportunity to go get additional funds, reallocate, and then you get another two years on that additional money. If it's actually two years plus the year in which the mortgage certificate program was set up, certificate program was set up. So for 2019 program, your ending date is December 31, 2022 or 2021. And then if you get, if you spend, if you allocate all that, you get more than you're, you're kind of roughly three year clock starts again on the newer money. Yes, sir. Yes, sir. Okay. This is miss again. Sorry. Okay. Dr. Nunez, I was going to offer to put together a couple different options to bring to the board next at our next meeting. I heard there was an interest in a forgivable program. So if you'd like me to, I can put together some options around that, that type of assistance. That would thank you, Mindy. That would be great. I think, as I said earlier, I don't think we're going to be making any decisions today, but I think we all need a little bit more information about how this might work. I'm in favor of changing what we're doing in order to be able to give our citizens the opportunity to be a homeowner. So I'm going to ask, are there any other comments from any other members of the board at this time. Mr. Rep. resident this is Victoria. Thank you. Mindy I would be very interested. I heard I'm interested in about fixed amounts. I'm interested in looking understand the philosophy behind the repayable because the thing that I'm still unclear about and perhaps you can clarify too is where are these, the funds are refreshed. And what I want to make sure is that the housing finance corporation continues to have an ability to utilize and continue to commit to these types of programs. So I'd like to look at both options if I'm understanding correctly. Sure. So the down payment assistance that would be provided to the homeowner would be from cash reserves that the housing finance corporation has. So as I said before, as we as we generate revenue from some of our multi-family activities that provides revenue to use for programs such as this. So the actual mortgage credit certificate program, not the DPA side, just that credit, our costs there are strictly related to the legal and financial advice that's necessary to establish that program. We don't have a per loan cost on the MCC side of it. I appreciate that additional information. And that's it gives me, once I would like to explore repayable as well, because again, I am very much persuaded by Mr. Peel's argument that certainly want someone to have a care to take care of the home and make sure they have skin in the game. And I appreciate that. But I also want to look at just making sure that the housing finance corporation can continue to provide funds and have an ability to do this on an ongoing basis and doesn't sort of at some point in time unable to do this on an ongoing basis and doesn't sort of at some point in time unable to do this program. So I'd like to look at both just to have a comparison purposes. Thank you, Mr. President. This is Mindy, offering back some options with repayable, forgivable, and even a combination of the two for you all to look at and see how that might play out and we'll bring that to your next board meeting. And we have a lot of programs that, like our grant funded programs, that are all forgivable. And so we grant this money out over and over and over and we don't recoup any of it back. So if we make part of this or all of this repable, we have those funds to use again and help another home buyer. So I'll bring those options to you. Thank you, Mindy. And I'm looking forward to the materials that you're going to give us. Go ahead and move on with the presentation, please. Sure. This is Mindy again. On to slide 17 and followed quickly by slide 18. In looking at last year, we decided the board decided that they would start putting some more structure around the corporation because it is getting more active and doing more activities. And so last, I believe December, we put together a sort of a budget for FY20 and doing the same thing for FY21. We're starting the year with about $773,000 of cash on hand. In FY21, our anticipated revenues are $765,000. And that comes from pilot payments and also comes from developer fee revenue and potentially revenue from the mortgage credit certificate program. This is a very, very conservative estimate. This revenue could be as high as $1.4 million and the reason for that variance is timing. We have some substantial developer fees coming in the near future, but they may not hit in the fiscal year 21. They may hit in the fourth quarter of calendar year 2021. So this is an extremely conservative estimate of revenues. And then on the next slide on slide 19 are some proposed expenses for the Board's consideration. I'll walk through these. The first is if you wanted to create a down payment assistance program, I picked a $7,500 down payment assistance for 20 loans to come up with this $150,000, but that could be more or less depending on what the board wanted to do. The second IAM is Memberships in the Texas Association of Local Housing Finance agencies that provides a membership to each of the board members as well as support staff for the corporation. Third is Travel and Training for Attendance at Conferences. This could be substantially lower depending on what happens with COVID-19. CPA services, that is an estimate of the cost weFC. We would ask our CPA to review the financials related to that transaction. $5,000 is a city services fee. Could be legal, could be accounting, could be any number of things. That's the same city services fee that the Housing finance corporation paid to the city in 2020. Neighborhood initiatives is a combination of a few items. One city has, I know you all are aware of this, a neighborhood matching grant program and that is funded by the city's general fund. If some of those matching grants came from neighborhoods of low moderate neighborhoods, those could be funded through the housing finance corporation instead of being funded by the city's general fund. Another neighborhood initiative is code enforcement in low income neighborhoods. To ease the burden this year on the general fund, the housing finance corporation could pay for code enforcement activities and low to moderate income neighborhood. So this is, this is, could be a combination of those two, depending on if the applications for the neighborhood matching grants came from low to moderate income neighborhoods. If they did not, these funds would support code enforcement and lower income neighborhoods. Support staff salary allocation is time that I spend on housing finance preparation activities. $10,000 would be used for case management software to track the progress of individuals participating in the Invision Center. And then the final item that's a repeat from the FY20 budget is to write support for the R&T and life shelter. Our local shelter last year, the housing finance corporation took on that expense so it was not hitting the city's general fund and we're asked to if the housing finance corporation would consider once again taking on that expense. In our December 2019 meeting which was our last meeting and the budget was approved for 2020. One of the Corporation Board members asked me how those funds were used and the lives shelter reports that those are used for general shelter support. And that's an area where they have a great need, but a lot of the grants that they apply for can't be used for general support. So this is very helpful for them to have these flexible funds used for that. I also had a late request for funds for a subscription for a subscription called RealPage that's used to provide a lot of data related to the housing market in Arlington. It's about $3,000 item and I've asked how to late request to add that to the proposed expenses for the Housing Finance Corporation's budget. And then I will pause now for your discussion. And if you have a consensus, we'll bring a resolution to the next board meeting to approve a budget. Mr. President. Uh, Victoria. Please go ahead, Victoria. Mindy, under Neighborhood Initiatives, just a couple of questions for you. I know you indicated the neighborhood matching grant and also used for code enforcement in low-income areas. Question here is we've had a sort of innovative program and obviously neighborhood services has worked along with code to sort of adopt a certain area and they work with the residents in that neighborhood to clean up the neighborhood and that's been pretty successful in our pilot projects that we've been doing around the city. Could this be utilized, this funding be utilized to enhance that program? It could be utilized to enhance that program. The request from the city was for to offset general fund expenses. So if we wanted to enhance that program, we would probably need to allocate additional funds for that. I was just interested because, again, going back to the idea of building neighborhood pride, a lot of our neighborhoods, a low income neighborhoods need a lot of work on their homes and housing. And I know when code has gone in and worked with the neighbors to clean up their neighborhood, we've seen a lot of good residual from that where those neighborhoods continue to stay cleaned. They continue to stay in good shape. So I was trying to look for an innovative way for us as a housing finance corporation to be involved in sending a message that we want to help rehabilitate some of our lower income neighborhoods. I'm not sure what the other committee members feel about that, but that's my thought. And this is Jennifer. Dr. Furmer's, I think it's the neighborhood enhancement team that you're talking about. And so we can, we, and last I heard the report on that, I believe they're planning on doing, I want to say 10 neighborhoods next year. So we can definitely take a look and talk with our code group to see if additional resources would help them do more, or if perhaps 10 might be their capacity and what possibly some additional resources could do. So we can definitely look into that if that's something that the, the age that you all would like us to do. Well, just to be clear Jennifer, I'm not necessarily asking for them to do more. What I'm suggesting is could the housing finance corporation do more in assisting us to, assisting code to do that? Got it. Okay. So it could, could they perhaps fund the 10 or the portion of the 10 that might fit with the with the spirit of the funding. Is that right? That's what I'm. Yes, that's what I suggest. Absolutely. We can we can definitely look at that. Comment. Chair recognizes councilman Marvin. So on the expenses for travel and training since most are done online. What would be that amount estimated amount if we just consider an online platform for training? This is Mindy. I can get those numbers for you. I don't know that off the top of my head. If you said substantially lower, the board members in the past have expressed an interest in participating in one of the Texas Association of Local Housing Finance corporations, web or not webinar, sorry, conferences. So we budgeted that, should a conference become available post-COVID, but we can revise that to online only if that would be a conference. Well, thank you, I know that the TML as well as NLC most of our meetings would have been in person, which would require some sort of travel expense, but not they're all virtual, which reduced that expenditure. I don't know if there can be an item set aside a contingency item that would cover just in case? This is Mindy. That line item could be used for online participation in conferences and should a like a fall 2021 conference be available in person, you could then use that to attend in person, should you desire to do that as well. So it's flexible to cover either one. Obviously, we would probably spend far less if everything was only online. This is Dr. Nunez. One of the things I noticed in our minutes last time that was that we gave a tentative approval, according to the minutes to approve our annual expenses. But what we're really doing is approving the concept of this proposed budget. And it's City council that makes a decision. Is that correct? Dr. Nunez, this is Mindy. Actually, no. This would be a budget approved by the housing finance corporation. And you would be authorizing the use of what housing finance corporation dollars for these items. Okay, and that's what I thought because that's exactly what we did last year, correct? That's correct. So we put some framework around how the funds would be spent. Okay, so to my fellow board members, this is going to, this is an item that does require a vote This is an item that does require a vote that we have to approve. So I'll make a couple comments. Overall, I agree with what's being proposed. Here, I agree with my colleague of Dr. Farmer's under the neighborhood initiatives. I agree that the program that the city has where they target neighborhoods has been immensely effective. And I would love to be able to help the city's budget. The concept for me when I first got on this. for Scott so that you'll know myself and Mr. Sutton we've been here about a year and a half on council and so a lot of this is new to us but as this finance corporation becomes more and more successful going forward and as our income goes up I view this as money that we're going to use to give back to the city to help with the general fun and to help our citizens. So I don't have a problem with anything that's here. I also hear Mr. Sutton's concerned about the travel and training. And I heard Mindy say that we're probably not going to use that money because of COVID. Although I do want to be able to attend a conference where I can learn more about this process and gain more information to be able to make better decisions. And sometimes if it weren't for COVID, I know that I would want to be at that meeting in person because it isolates me and forces me to, between them in a position where I'm not distracted. It's one of the things I don't like about COVID is I'm sitting at home and the dogs will come through or the phone will ring or the grandkids want my attention. There are way too many distractions and it's actually for me personally, a little bit more difficult to do stuff online. But I don't have any problems with the proposed 2021 expenses with the comments that I've made. I do need input from other board members because I'm going to ask for motion to approve this and we're going to take a vote. Dr. Nguyen, this is Mindy. I wanted to share that with our very, very conservative revenue projections and this slate of expenditures. We'll still add almost $350,000 to the housing finance corporations reserves over the 2021 fiscal year. So we'll still be a growing agency with these expenditures. And I wanted to just also get some clarification that you all seem okay with the travel training budget with the understanding that it may or may not be used. And I heard no objection to adding $. I'm not going to use it. I'm not going to use it. I'm not going to use it. I'm not going to use it. I'm not going to use it. I'm not going to use it. I'm not going to use it. I'm not going to use it. I'm not going to use it. I'm not going to use it. I'm not going to use it. I missed part of it. Oh, no, I said did you have any clear? Yes, sir. No, I can accept the budget with the additions stated by Miss Cochran. Very good, sir. Thank you. Miss for our Mars Dr. Mars. I'm just a clarify for everyone on the call the November 9 through 11th Irving Texas TALF TAL FHA in the council. So FYI for everyone. Um just so they know that that is not an in person option this year. I'm fine with the budget is is again I I did want to just make sure that we took a look at whether or not we could offset any of the additional code expenses regarding the neighborhood adoption program. Um with that. That's my only comment. Thank you and Mr. Peele. I'm in support of the budget. Mr. Hubbom. I'm in support of it. I wanted to ask one question, a little bit of a follow-up to the previous questions. The neighborhood initiative, would it be possible to get a little maybe an email or something with just a few more details on the proposed scope of what the 200,000 was going to be used for? It's a little murky in my brain and I don't have a problem with the budget. I just would like to understand a little more of what is proposed to be done with the 200,000 so then I can have some context into if we do something different because I really support. Would Dr. Farrah Myers have said and what you said, Dr. Nunez, I think those are great ways to try to embellish the successful program. I just want to get some background on what it was going to be used for. So I don't understand it. This is Mindy. I'll be happy to send that and I'll send that to the entire board. And Dr. Nunez, if I might make a recommendation, since the board is going to be having another discussion at our next meeting about the Down Payment Assistance Program, and that is sort of a plug item in this budget, if it's okay, what I'll do is bring back a resolution at the next meeting for you all to approve the budget. And at that time, we can add the down payment assistance amount based on your discussion at the next meeting. Thank you very much. And I really appreciate that. So we will not vote today then, without any objections from board members. And when you bring that information back, when do you anticipate our next meeting to be? As soon as I can coordinate all of your schedules. So sometime with the next month or so? Oh yes, hopefully within the next several weeks. Excellent. Are there any objections to putting off the vote until we get the down payment assistance programs sort of information in our hands? That'll also allow you you Scott to have that information on the neighborhood initiatives in your hand as well. Without if there are no objections, many would you move on to development? I sure will. Slide 21. This is just as a background reminder that the development process, how that works in general. When we have a development that's looking to combine housing tax credits 4% generally with bond financing. The process looks like this, an application for support or no objection rather from City Council is submitted by the developer. Staff reviews that application for consistency with the City Council approved housing tax credit policy. That is then taken to the City's Community and Neighborhood Development Committee for a for review and recommendation and then it goes to full City Council to Consider a resolution of no objections for that developer to apply for housing tax credits And you you may see that we're sort of right in the middle of this process with a development called reserve at Mayfield in the middle of this process with a development called Reserve at Mayfield. It has been to the Community and Neighborhood Committee for Review and Recommendation. They were supportive of that, and it will be on your next City Council evening agenda as a resolution of no objection. Generally following that, but sometimes it could go simultaneously, an application is made to the Housing Finance Corporation Generally following that, but sometimes it could go simultaneously. An application is made to the Housing Finance Corporation for bond financing. The Housing Finance Corporation would enter into a memorandum of understanding, approve an inducement resolution which allows them to apply for a bond allocation, and then formal partnership agreements are created. We do have a development proposal in the pipeline that is not seeking housing tax credits. They're simply seeking a partnership arrangement with the housing finance corporation. So their first entry into this process would be at the start of this slide number 22 because they don't go the City Council route for housing tax credit approval. So the development that is coming through right now on slide 23 is the reserve at Mayfield. Those of you who also sit on the Community and Neighborhood Development Committee have seen this before. The developer is MDH Development, represented by Darren Smith. It's located at 1950 East Mayfield, which is at the corner, roughly the corner, South East corner of New York Avenue and Maple. It's 236 units of affordable senior housing. It consists of three four-story buildings and then I'm also some single-story cottages because it's senior. It is a mix of one and two-bedroom units. It's proposed to be a over 55 development and this site is currently zoned for multi-family housing. The developer has been managing multi-family tax credit developments since 1994, and they have over 6,000 units in their portfolio. This is proposed to be a partnership with the Housing Finance Corporation, which would include a property tax exemption, but the developer is proposing a payment in lieu of taxes of in excess of $100,000 per year, and it would have been multiplier each year. They're also proposing to have a satellite envision center located on site that would be open to all the residents in East Arlington, not just those residing in this development. It would have a separate exterior entrance for the public. Looking at slide four, it's a very rough early stage site plan so you can see the multi-family buildings as well as in that southern and those small cottages. It's a very irregular shaped piece of property and those cottages would allow use of that little piece of land down on the southern end where it's not really feasible because of parking and access to put another structured building. This location is within 2.4 miles of pharmacy parks, recreation, medical churches. The timeline would be a design in fall of 2020 with construction starting in March of 21 with the proposed completion in August of 2022. Common amenities would include a community center, walking trail, fitness center, a swimming pool, that satellite envision center, and a water feature. Unity amenities would include central H.C. washer and dryer hookups, a breakfast par, bar, kitchen, pantry, a lot of energy efficient measures. Services would really depend on what the tenants request, but it could include financial planning, nutrition classes, social events, exercise classes, things of that nature. They've done outreach to the Hannah neighborhood group to East Arlington who are very supported, Cornerstone Baptist Church, the NAACC and several others. And they also have support from the investors for aging well. And they're proposing that those cottages be sort of a very unique element. We've been working, I've been working with Horton World Solutions, Terry Horton on a he's got a product that he considers very revolutionary in residential construction. It's going through some processes now to ensure that it's going to meet all the international building codes that would be required and they feel like they're very close to getting that approval. They haven't done a widespread use of this product, but they would like to work with Port and World Solutions and this developer to use that product in these cottages. So they'd be able to showcase this very new and innovative product. It's basically a structurally insulated panel and it can be put together with unskilled labor. So we would like to create some sort of a program with families that are receiving rental assistance through the housing authority to provide an employment opportunity and to learn this skill. So it's kind of very innovative or not 100% sure if we can make that work because of the timing, but that's the goal for those cottages. It's kind of exciting and I'll pause here for any questions or just going from the board. Any questions, comments? Mr. President, this is Victoria. Where you go ahead? I'm very interested in us being as innovative as possible. And I very much like the opportunity to provide jobs for individuals as well to get skill training for future. So just wanna applaud your efforts in doing that. Thank you. Any other comments? I too wanna chime in. This is a phenomenal. I'm happy to see that it's already zone multi-family. And I think it's gonna be a great addition to for the seniors in Arlington. And it's a pretty good location, I think. Any other comments? Wendy, have we reached the future proposals? Would you like to speak to that please? You bad, I'll be brief. Mrs. Mindy, on the reserve it may feel just to let you all know the next steps if it does get a resolution to objection from city council is the developer will be coming back to this board with a memorandum of understanding and likely asking for an inducement resolution. So on potential future proposals, give you an idea of things that might be coming down the pipeline. The first development is a mixed site. It's located roughly at center in Arbrook, and it's proposed by Integrated Real State Group. Has a combination of different types of housing. They're proposing multi-family workforce housing, where 50% of the units would be for those under 80% of AMI. A four to an element of affordable independent living and then market rate assistant living. Part of the site includes a retail location and future commercial. This is the one that's not looking for housing tax credits, but a partnership with the Housing Finance Corporation. More to come on that one. partnership with the Housing Finance Corporation. More to come on that one. Mixed site number two is proposed by the Javilan Group. This is located at a site of the Southeast corner of Collins and Debbie. And the proposing multi-family senior housing, also with some senior cottages, a substantial number actually of senior cottages. And one unique element that they're proposing is they are working with a company that has an electric rideshare program. So they would have onsite vehicles with a charging station and those cars would be available for the residents living there and not the rest of the general public. So you could envision a husband and wife that currently have two cars maybe downfies into one car because they would have access to this rideshare program. And not a rideshare, it would be something like you would check out the vehicle and drive it yourself. So you need to go to the grocery store, you'd reserve the vehicle, take it to the grocery store and check it back in when you return. The third is more traditional and multi-family workforce housing, sort of a traditional development. This is at 287 and south of sublet in north of Eden. They're a traditional tax credit bond finance project, possibly seeking a tax exemption, trying to make it work without that, but if they do have a request of tax exemption, they would work with the housing finance corporation to make sure that they're providing a payment in lieu of taxes and also a share of revenue to the housing finance corporation for future development. All three of these unfortunately would require a zoning change so we'll just keep you posted on future meetings as they work their way through the process. And that's all I have unless there are any questions. Any questions from anyone? Hearing now, I don't want to make any assumptions, but going back to the reserve at my field, does anyone have any objections when we present this to City council as a whole that we are recommending a resolution of what is it? Mindy, how do we word that again? It's a resolution of no objection. So are there any objections that anyone can think of before we present us a council at our next meeting? Well, hearing none, Mindy. Any other business for us to discuss? Yes, sir. So looking at the agenda, let's see, Assistant Secretary report. Any. That was covering the future development. Okay, Mr. Langley's items. Any business that anybody wants to talk about? Hearing none, I'm gonna... A believe this meeting can be adjourned. And hearing no objection, I wanna thank everybody for your attendance I believe this meeting can be adjourned. And hearing no objection, I wanna thank everybody for your attendance and your input and this meeting is adjourned and we will see you guys later. Thank you. Thank you.