* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.
           
          [Texas House on Urban Affairs Committee on July 14, 2022.]
          [00:00:14]
POLICE. 
          HELLO, THE ROW, REPRESENTATIVE CORTEZ HERE, REPRESENTATIVE PELS. 
          HERE, REPRESENTATIVE HOLLAND. 
          REPRESENTATIVE SHAW. 
          REPRESENTATIVE JOHNSON. 
          HERE. 
          REPRESENTATIVE BERNAL. 
          REPRESENTATIVE SLAYTON. 
          HERE, REPRESENTATIVE GATES HERE, REPRESENTATIVE EZ. 
          WE HAVE A QUORUM. 
          THERE IS A QUORUM PRESENT. 
          AND THANK YOU'ALL MEMBERS, UH, FOR COMING TO THIS BEAUTIFUL CITY OF HOUSTON. 
          AND, UM, THESE BEAUTIFUL CITY COUNCIL CHAMBERS. 
          WE'RE VERY FORTUNATE AND HONORED TO HAVE THE MAYOR PRO TEM OF HOUSTON HERE TODAY. 
          MR. DAVE MARTIN. 
          MR. MAYOR, IF YOU'D PLEASE COME ON UP. 
          THANK YOU FOR JOINING US TODAY AT THE URBAN AFFAIRS COMMITTEE MEETING IN YOUR BEAUTIFUL CITY COUNCIL CHAMBERS. 
          THANK YOU, CHAIRMAN CORTEZ AND DISTINGUISHED HOUSE MEMBERS OF THE URBAN AFFAIRS COMMITTEE. 
          I'M HERE ALONG WITH MY FELLOW COUNCIL MEMBER, ROBERT GALLEGOS. 
          WELCOME YOU TO THE CITY OF HOUSTON, THE FOURTH LARGEST CITY IN THE UNITED STATES. 
          UH, MAYOR TURNER WOULD BE HERE, BUT HE HAD SOME SURGERY A COUPLE WEEKS AGO, SO HE IS AT HOME RECUPERATING. 
          ANYTHING YOU NEED, WE'RE HERE TO SERVE YOU TODAY. 
          UH, WE HAVE A NUMBER OF OUR STAFF FROM THE CITY OF HOUSTON HERE AS WELL. 
          HOPE YOU HAVE A GREAT MEETING, UH, YOUR BACKGROUND. 
          MANY OF YOU HAD THE OPPORTUNITY TO KNOW. 
          COUNCIL MEMBER, FORMER COUNCIL MEMBER JARVIS JOHNSON, NOW, STATE REPRESENTATIVE JARVIS JOHNSON, AND A NUMBER OF YOU THAT SERVED ON CITY COUNCIL AND, UH, CHAIRMAN CORTEZ. 
          WE HAD THE OPPORTUNITY TO MEET, UH, ACTUALLY LAST TIME I WAS IN AUSTIN WHEN I HAD THE OPPORTUNITY TO TESTIFY, UM, UNFORTUNATELY AGAINST ONE OF MY CONSTITUENTS,  STATE REPRESENTATIVE MARY ANN PEREZ. 
          UM, BUT WE REALLY HAVE A GREAT RELATIONSHIP WITH ALL OF THE FOLKS THAT REPRESENT US IN THE CITY OF HOUSTON, IN THE STATE HOUSE. 
          AND, UH, WE APPRECIATE EVERYTHING THAT YOU DO EACH AND EVERY DAY. 
          IT'S GONNA BE AN INTERESTING SESSION THAT YOU'RE GONNA WALK INTO IN JANUARY. 
          UH, I LIVE IN, UH, UH, REPRESENTATIVE DISTRICT 1 27, WHICH WAS DAN HUBERTY, AND WE HAVE A NEW FRESHMAN STATE REP COMING IN, CHARLES CUNNINGHAM, AND I HOPE YOU WELCOME HIM WITH, UH, OPEN ARMS. I SERVE WITH BOTH DAN AND CHARLES ON OUR LOCAL SCHOOL BOARD, AND THEY BOTH, UH, DO A GREAT JOB DAY IN AND DAY OUT, AND I THINK YOU'LL ENJOY MR. CUNNINGHAM, STATE REPRESENTATIVE CUNNINGHAM. 
          SO HAVE A GREAT DAY. 
          IT'S AN HONOR TO HAVE YOU IN OUR HOUSE. 
          AND ANYTHING YOU NEED, YOU JUST LET US KNOW, OR JUST ASK JARVIS, HE KNOWS WHERE EVERYTHING IS AROUND HERE. 
          GOD BLESS. 
          THANK YOU, MARY, SO MUCH FOR BEING HERE. 
          DID DID YOU HAVE THE GOOD FORTUNE OF SERVING WITH COUNCILMAN JARVIS JOHNSON AT THE TIME? NO, HE TALKED ME EVERYTHING. 
          I KNOW THOUGH, YOU KNOW. 
          OH, OKAY. 
          HE, HE, HE'S A, AS YOU CAN TELL, HE'S A LOT OLDER, OLDER THAN I AM. 
          ANY THOUGHTS ON THAT, JARVIS? I, UM, I'M, I'M GONNA HOLD MY, UH, COMMENTS, BUT YEAH, I'M, I'M ABSOLUTELY A LOT OLDER THAN YOU, BUT, BUT CERTAINLY NOT SMARTER. 
          BUT I THINK EVERYTHING HAS CHANGED SINCE I'VE BEEN HERE. 
          YOU ADDED MORE PEOPLE. 
          YEAH, WE SURE. 
          WE SURE. 
          YOU'RE TRYING TO GET TO, TO STATE, TO STATE, UH, UH, DEMOCRACY. 
          IS THAT RIGHT? THAT'S IT. 
          YOU'RE RIGHT ABOUT THAT. 
          BUT, UH, Y'ALL HAVE A GREAT DAY, MAYOR. 
          THANK YOU AGAIN, AND GOD BLESS FOR BEING HERE. 
          THANK YOU. 
          THANKS FOR BEING HERE. 
          YES, SIR. 
          THANK YOU, MAYOR. 
          SO, THANK YOU AGAIN, UH, MAYOR PRO 10 DAVE MARTIN FOR COMING BY TO WELCOME US. 
          AND, UM, IT'S, IT'S GREAT TO SEE EVERYBODY HERE IN THE AUDIENCE. 
          I JUST WANNA JUST READ OVER SOME QUICK HOUSEKEEPING ISSUES. 
          UH, IF YOU ARE TESTIFYING AND YOU HAVE NOT FILLED OUT THE WITNESS AFFIRMATION FORM, PLEASE GRAB ONE FROM THE BACK TABLE AND FILL IT OUT. 
          THEN HAND IT OVER TO OUR CLERK WHO IS HERE. 
          MS. LOPEZ, WE CAN'T TAKE ANY TESTIMONY FROM YOU UNTIL YOU FILL OUT THE FORM. 
          UM, IN ADDITION, THERE'LL BE NO BILLS OR RESOLUTION TO BE CONSIDERED OR VOTED ON DURING THE INTERIM HEARINGS. 
          HEARINGS. 
          WE HAVE WITNESSES WHO ARE REGISTERED TO TESTIFY NEUTRALLY, AS THE PURPOSE OF THESE MEETINGS IS TO GATHER INFORMATION IN ORDER TO COMPILE THE COMMITTEE'S INTERIM REPORT. 
          IF YOU'RE WATCHING ON THE INTERNET AND WANNA SEND COMMENT ON ANY OF TODAY'S ISSUES, HERE'S HOW TO DO THAT. 
          GO TO THE URBAN AFFAIRS COMMITTEE PAGE ON THE TAX TEXAS HOUSE WEBSITE, CLICK ON NOTICE OF TODAY'S HEARING, AND THEN HIT THE HYPERLINK IN THE COMMENT SECTION OF THE NOTICE. 
          PLEASE SILENCE OR TURN OFF YOUR CELL PHONES OR OTHER MOBILE DEVICES SO WE CAN PROCEED WITHOUT INTERRUPTIONS. 
          AND MEMBERS, WE DO PLAN ON WORKING THROUGH LUNCH TODAY. 
          THE LUNCH WILL BE SERVED IN THE BACK, AND SO WE WILL BEGIN WITH, UM, CHARGE NUMBER TWO. 
          BUT BEFORE I DO, I JUST WANT TO TAKE A, A MOMENT TO, UM, RECOGNIZE, UM, A SENATOR VAN DEPU, SENATOR SENATOR LETA VAN DEPU IS HERE FROM SAN ANTONIO, AND, UH, WE'RE VERY HONORED AND HAPPY TO SEE HER. 
          SHE WAS, UNFORTUNATELY INVOLVED IN A, A TERRIBLE ACCIDENT, UM, IN FLORIDA. 
          AND SO FOR HER TO MAKE THE EFFORT AND TO TO BE HERE WITH US TODAY MEANS A LOT. 
          SO, SENATOR MANIPU, THANK YOU FOR BEING HERE TODAY AND GODSPEED ON YOUR CONTINUED RECOVERY. 
          SO WE'LL BEGIN WITH CHARGE NUMBER TWO. 
          SO THE HOUSE COMMITTEE ON URBAN AFFAIRS HAS BEEN CHARGED WITH DETERMINING WHETHER OR NOT, WHETHER THE AVAILABILITY OF WORKFORCE HOUSING CAN KEEP UP WITH OUR GROWTH. 
          THERE'S A LOT, THERE'S EVIDENCE THAT THERE IS CONCERNS WITH THAT ACROSS THE STATE. 
          TEACHERS, POLICE OFFICERS, CHILDCARE WORKERS, 
          [00:05:01]
PARAMEDICS, AND MANY OTHERS, GENERALLY HAVE SPENT MORE THAN 30% OF THEIR INCOME ON HOUSING AND MUST SPEND ON CHILDCARE, TRANSPORTATION, AND OTHER EDUCATION, UH, NEEDS TO MAKE ENDS MEET. 
          THE COMMITTEE'S TASK IS TO STUDY THE THINGS THAT STATE AND LOCAL GOVERNMENTS ARE DOING TO HELP BUILD MORE WORKFORCE HOUSING TO SEE WHAT WORKS BEST. 
          AND RELATED TO THAT, WE WANNA MAKE SURE THESE MEASURE MEASURES ARE TRANSPARENT AND ACCOUNTABLE. 
          THIS IS A COMPLICATED PICTURE, A LOT OF STAKEHOLDERS THAT ARE PRESENT TO TALK ABOUT THIS. 
          AND SO WE'LL BEGIN TO HEAR, UH, TESTIMONY. 
          WE'LL START WITH OUR DIRECTOR FROM T-D-H-C-A DIRECTOR. 
          WILKERSON, IT'S WONDERFUL TO SEE YOU AGAIN. 
          THANK YOU FOR BEING HERE TODAY IN HOUSTON WITH US. 
          AND IF YOU COULD PLEASE STATE FOR THE RECORD, UH, YOUR NAME, UM, AND WHO YOU'RE WITH, AND YOU CAN BEGIN TO YOUR TESTIMONY. 
          BOARD CHAIR  BOBBY WILKINSON, EXECUTIVE DIRECTOR OF TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. 
          T-D-H-C-A IS A STATE AGENCY CHARGED BY CHAPTER 23 0 6 OF THE GOVERNMENT CODE TO ASSIST LOCAL GOVERNMENTS AND TEXANS IN THE PROVISION OF HOUSING FOR INDIVIDUALS AND FAMILIES OF LOW, VERY LOW, EXTREMELY LOW AND MODERATE INCOMES, AND CONTRIBUTING TO THE PRESERVATION, DEVELOPMENT AND REDEVELOPMENT OF NEIGHBORHOODS AND COMMUNITIES, ASSISTING THE GOVERNOR AND THE LEGISLATURE IN COORDINATING FEDERAL AND STATE PROGRAMS AFFECTING LOCAL GOVERNMENT, PARTICULARLY THOSE RELATED TO HOUSING AND SERVING AS A SOURCE OF INFORMATION TO THE PUBLIC REGARDING ALL AFFORDABLE HOUSING RESOURCES AND COMMUNITY SUPPORT SERVICES IN THE STATE. 
          SO HOW DO WE MEET THAT NEED? PRIMARILY, WE ACCOMPLISH IT THROUGH SEVERAL PROGRAMS FOR BOTH SINGLE FAMILY AND MULTIFAMILY APPROACHES. 
          WE HAVE HOME OWNERSHIP PROGRAMS WHERE WE HELP PEOPLE WITH AFFORDABLE MORTGAGES AND DOWN PAYMENT ASSISTANCE. 
          UH, WE HAVE A BUILD YOUR OWN SWEAT EQUITY PROGRAM CALLED BOOTSTRAP. 
          UH, HABITAT FOR HUMANITY WOULD BE, UM, OR SUBRECIPIENT, I WOULDN'T RECOGNIZE. 
          UH, WE HAVE FINANCING TOOLS FOR NEW CONSTRUCTION OR THE REHABILITATION OF AFFORDABLE HOUSING APARTMENTS. 
          THIS VARIETY OF PROGRAMS ENSURES THAT WE SERVE A WIDE RANGE OF TEXANS NEEDS. 
          IN LOOKING AT THE COMMITTEE INTERIM CHARGE AND EVALUATING THE AVAIL AVAILABILITY OF WORKFORCE HOUSING IN THE STATE, I THINK WE NEED TO CONSIDER WHAT THE ACTUAL AFFORDING HOUSING, AFFORDABLE HOUSING NEED IN THE STATE IS. 
          UH, I HAVE SOME STATISTICS FROM OUR STATE LOW INCOME HOUSING PLAN. 
          WE CALL IT THE SLIP. 
          WE PUT IT OUT EVERY YEAR. 
          UH, THIS IS THE NEED FOR RENTAL HOUSING. 
          IN 2021, THERE WAS A LITTLE MORE THAN 2 MILLION HOUSEHOLDS CONSIDERED TO BE EXTREMELY LOW INCOME, VERY LOW OR LOW INCOME, WITH AT LEAST ONE OR MORE HOUSING NEEDS. 
          A HOUSING NEED IS DEFINED AS AN OCCUPANT MEETING, ONE OR MORE OF THESE THREE CRITERIA. 
          SUBSTANDARD PHYSICAL CONDITION OF A HOUSING UNIT, HAVING TO SPEND TOO MUCH OF THE HOUSEHOLD'S INCOME ON HOUSING COSTS. 
          AND WHETHER OR NOT THE UNIT IS OVERCROWDED. 
          THE COST ONE IS, IS, IS THE LARGEST. 
          WE HAVE EVERY REASON TO BELIEVE THAT SINCE THE TIME OF THE DATA, THE NEED HAS ONLY GROWN. 
          I THINK THE OTHER ASPECT OF THIS CHARGE IS DEFINING AFFORDABILITY. 
          THE TERM ITSELF IS ASSIGNED DIFFERENTLY DEPENDING ON WHO YOU TALK TO FOR OUR PROGRAMS. T-D-H-C-A DEFINES AFFORDABILITY AS A HOUSEHOLD THAT SPENDS NO MORE THAN 30% OF ITS INCOME ON RENT OR MORTGAGE PAYMENT. 
          SO IF A HOUSEHOLD IS SPENDING 30% OR LESS OF ITS INCOME ON RENT OR MORTGAGE PAYMENT, THAT'S CONSIDERED AFFORDABLE. 
          UH, JUST GENERALLY NOT CAPITAL A AFFORDABLE JUST MARKET RATE AND, AND, AND SUBSIDIZE BOTH. 
          CONVERSELY, AS SOON AS THEY HAVE TO START SPENDING MORE THAN 30%, THEY CONSIDER CONSIDERED HOUSING COST BURDENED. 
          OF COURSE, THE TWO VARIABLES AT PLAY ARE INCOME AND WHAT THE HOUSEHOLD IS SPENDING, WHETHER THAT IS FOR RENT OR MORTGAGE. 
          IN TEXAS, BOTH INCOMES AND HOUSING COSTS ARE INCREASING, BUT AT DIFFERENT RATES, UNFORTUNATELY, LOOKING AT IT FROM A, A SINGLE FAMILY HOME OWNERSHIP PERSPECTIVE, PER THE TEXAS A AND M REAL ESTATE CENTER, AND THE LAST YEAR MEDIAN FAMILY INCOME IN TEXAS INCREASED 13.6%, BUT THE MEDIAN HOME SALES PRICE INCREASED 17.4. 
          THE REPORT CONCLUDED THAT AS LONG AS THE RISE IN HOME PRICES CONTINUES TO OUTPACE THE INCREASE IN INCOME, PURCHASED AFFORDABILITY, OR THE ABILITY OF A HOUSEHOLD TO BUY A HOME WILL CONTINUE TO TO DIMINISH. 
          IN TEXAS, THE MEDIAN HOME PRICES INCREASED FOR THE 15 CONSECUTIVE MONTHS, NO DOUBT. 
          THE INCREASING GAP BETWEEN HOME PRICES AND WAGES IMPACTING THE STATE'S HOME OWNERSHIP RATE, THE LATEST RATE WAS CALCULATED AT 62.3%, WHICH IS ABOUT 2% BELOW THE NATIONAL AVERAGE. 
          I'D ALSO NOTE THAT WE'RE WE'RE A YOUNGER STATE, SO THAT WOULD, THAT WOULD SKEW THAT AS WELL. 
          FROM A RENTAL PERSPECTIVE, A RECENT REPORT FROM THE NATIONAL LOW INCOME HOUSING COALITION REFLECTS THAT FOR EVERY 100 EXTREMELY LOW INCOME RENTERS, MEANING THEY EARN LESS THAN 30% OF AREA MEDIAN INCOME, TEXAS ONLY HAS 29 AFFORDABLE UNITS. 
          THIS MEANS THAT TEXANS WITH THE LOWEST INCOMES OFTEN COMPRISED OF ELDERLY, DISABLED, THOSE ON FIXED INCOMES, AND THOSE AT RISK OF HOMELESSNESS 
          [00:10:01]
DO NOT HAVE ACCESS TO THE UNITS THEY NEED. 
          SO HOW DOES C-D-H-C-A WORK TO HELP THESE FAMILIES? AS I MENTIONED EARLIER, WE FOCUS OUR EFFORTS INTO TWO PRIMARY CHANNELS, HOUSING ASSISTANCE FOR LOW INCOME HOMEOWNERS AND HOUSING ASSISTANCE TO DEVELOP AFFORDABLE RENTING, AFFORDABLE RENTAL HOUSING, APARTMENT COMPLEXES FOR RENTAL HOUSING. 
          UH, OUR BIGGEST, UM, TOOLS ARE HOUSING TAX CREDIT PROGRAMS, WHICH ARE THE MOST PROLIFIC PRODUCERS OF NEW AND REHABILITATED RENTAL UNITS IN THE STATE. 
          THEY'RE GREAT EXAMPLES OF PUBLIC PRIVATE PARTNERSHIPS AS REFERENCED IN THE CHARGE TAX CREDIT UNITS ARE A GREAT EXAMPLE OF WHAT SOMEONE WOULD CALL WORKFORCE OR AFFORDABLE HOUSING. 
          THEY DON'T NECESSARILY TARGET THE LOWEST. 
          IT'S, UH, IT'S MOSTLY 50 60% A MI AREA MEDIAN INCOME, EXCUSE ME. 
          LAST YEAR ALONE, WE FINANCED A NEW CONSTRUCTION OR REHAB OF 12,964 UNITS, UH, ABOUT 1% OF THE AFFORDABLE ORIGINAL HOUSING NEEDS IN THE STATE. 
          BUT WHILE TDHG IS, IS ACTIVE IN THE AFFORDABLE HOUSING WORLD, WE'RE A SMALL PIECE OF THE PUZZLE. 
          OTHER PROVIDERS OF HOUSING ARE A FEDERAL PARTNERS LIKE HUD OR US DEPARTMENT OF AGRICULTURAL RURAL DEVELOPMENT AGENCY, AND OF COURSE, THE THE FREE MARKET. 
          ALL OF US WORK TOWARDS MEETING THE STATE'S NEED. 
          BUT AS I JUST SHARED, THERE REMAINS A GROUP WHICH HAS HISTORICALLY BEEN HARD TO SERVE THE EXTREMELY LOW INCOME GROUP. 
          THOSE HOUSEHOLDS AT OR BELOW 30% OF AREA MEDIA INCOME. 
          AND OUR TAX CREDIT PROGRAMS DO PROVIDE SOME UNITS TO MEET THIS NEED. 
          BUT IT'S NOT THE BEST FIT. 
          WHY, BASED ON HOW IT WAS DESIGNED BY THE FEDS THAT THE HOUSING TAX CREDIT, CREDIT PROGRAM HITS ITS SWEET SPOT, SERVING THOSE WITH INCOMES AROUND THE 50 TO TO 60% AREA MEDIAN INCOME. 
          MARK. 
          GIVEN ALL THE ECONOMIC FACTORS IN AFFORDABLE HOUSING AND THOSE FINANCIAL TOOLS, DEVELOPMENTS DO BEST WHEN SERVING THAT RANGE. 
          TO SERVE THE EXTREMELY LOW INCOME POPULATION. 
          EXTRA SOURCES OF FINANCING AND EQUITY ARE NEEDED TO HELP WITH THE FINANCING OF DEVELOPMENT, WHICH CAN THEN OFFSET THE LOWER RENTS GATHERED FROM THE LOWER INCOME UNITS. 
          THE FINANCING OF HOUSING TAX CREDIT TRANSACTION IS LIKE ANY OTHER, THE MORE AND VARYING SOURCES OF FUNDING, THE MORE COMPLEX THE TRANSACTION AND THE GREATER THE NEED FOR EXPERIENCED DEVELOPERS. 
          NOT ONLY IS THE HOUSING TAX CREDIT PROGRAM OUR BEST TOOL FOR MEETING THE NEEDS OF THE RENTERS, BUT ALSO PROVIDES A LARGE POSITIVE ECONOMIC FOOTPRINT ACROSS THE STATE USING A FORMULA FROM THE NATIONAL ASSOCIATION OF HOME BUILDERS. 
          WE ESTIMATE THAT THE HOUSING TAX CREDIT PROGRAM LAST YEAR GENERATED 1.4 BILLION IN LOCAL INCOME, 264 MILLION IN TAXES, AND 19,320 JOBS. 
          ONE OF OUR NEWEST AND BEST TOOLS TO HELP CREATE MORE AFFORDABLE HOUSING, AND IS THE MULTIFAMILY DIRECT LOAN PROGRAM, OR WHAT WE CALL MFDL. 
          IT'S FEDERALLY FUNDED BY THE NATIONAL HOUSING TRUST FUND AND THE HOME PROGRAM, BOTH FROM HUD AND HIS POPULARITY IN TEXAS WITH DEVELOPERS, IS GROWING SIGNIFICANTLY. 
          BOTH INTEREST AND FUNDING HAVE GROWN DRAMATICALLY IN RECENT YEARS. 
          IN THE LAST THREE YEARS, WE'VE GONE FROM ABOUT 11 MILLION IN 2019 TO ABOUT 48 MILLION THIS YEAR. 
          AND THIS YEAR, MFDL APPLICATIONS WERE OVERSUBSCRIBED BY A THREE TO ONE MARGIN. 
          UM, I'D LIKE TO ADD THAT THIS IS USUALLY LAYERED WITH TAX CREDITS AND HELPS, HELPS FILL THE GAP. 
          TAX CREDITS DON'T GET THEM ALL THE WAY THERE. 
          AND SO, UH, USING LOAN FUNDS HELPS WITH THE GAP FINANCING AND, AND IT'S USED AS A TOOL TO, UH, TO SOMETIMES GET THOSE 30% UNITS LIKE TO TARGET LOWER INCOME. 
          AS WITH ANY FEDERAL HOUSING PROGRAM, THE MFDL HAS ITS SHARE OF RULES AND REGULATIONS. 
          SOMETHING THAT IS DEFINED, DEFINITELY CHALLENGING FOR THE DEVELOPERS WHO USE THESE FUNDS AND STAFF AS WELL. 
          BUT IT'S AN ATTRACTIVE OPTION BECAUSE OF LOW INTEREST RATES AND A LACK OF OTHER FINANCING TOOLS AVAILABLE RIGHT NOW. 
          SUPPLY CHAIN ISSUES, UNPRECEDENTED PRICE INCREASES IN CONSTRUCTION MATERIALS, AND A LACK OF A WORKFORCE OR MAJOR FACTORS IMPACTING THE DEVELOPMENT COMMUNITY. 
          THE INCREASED COSTS CAN BE OFFSET BY FINDING ADDITIONAL FINANCING RESOURCES LIKE THE MFDL PROGRAM. 
          AND WE EVEN OFFERED A COVID RELATED SETASIDE THIS YEAR FOR AFFORDABLE HOUSING DEVELOPMENTS UNDER CONSTRUCTION THAT ARE BEING NEGATIVELY IMPACTED FINANCIALLY BY THE PANDEMIC FROM A SINGLE FAMILY PERSPECTIVE, T-D-H-C-A HAS SEVERAL TOOLS THAT HELP SUPPORT OR PROVIDE HOUSING. 
          OUR TEXAS HOME BUYER PROGRAMS AND THE TEXAS BOOTSTRAP LOAN PROGRAM, OUR TEXAS HOME BUYER PROGRAMS REMAIN STRONG DESPITE THE PANDEMIC. 
          AND IN 2021, WE HAD A GREAT YEAR. 
          WE SERVED 9,274 HOUSEHOLDS WITH MORTGAGES OR MORTGAGE CREDIT CERTIFICATES TO HELP HOME BUYERS GET INTO THEIR HOMES. 
          74% OF THE BORROWERS WE SERVED WERE AT OR BELOW 80% OF AREA MEDIAN INCOME. 
          AND THE AVERAGE ANNUAL INCOME OF OUR CUSTOMERS WAS 58,000. 
          THE AVERAGE LOAN AMOUNT WAS 205,000. 
          THE BOOTSTRAP LOAN PROGRAM IS OUR OTHER SINGLE FAMILY HOME OWNERSHIP PROGRAM, AND IT'S A SWEAT EQUITY SELF-BUILD HOUSING PROGRAM FUNDED THROUGH THE STATE'S HOUSING TRUST FUND, 
          [00:15:01]
SERVING HOUSEHOLDS AT OR BELOW 60% OF AREA MEDIAN INCOME. 
          THE MAXIMUM BOOTSTRAP LOAN IS 45,000 PER HOUSEHOLD AT A 0% INTEREST LOAN FOR A TERM OF 30 YEARS. 
          OWNER BUILDERS LEVERAGED THEIR BOOTSTRAP LOAN WITH ADDITIONAL LOANS FUNDS FROM OTHER SOURCES. 
          UH, I'D LIKE TO MENTION HABITAT FOR HUMANITY WAS, WAS PROBABLY THE MAIN, UM, UM, RECIPIENT. 
          PART OF THE COMMITTEE'S CHARGE IS TO DEVELOP AND INCLUDE MEASURES TO ENSURE ACCOUNTABILITY AND TRANSPARENCY ASSOCIATED WITH THESE TOOLS. 
          I'M HAPPY TO SHARE WITH THE COMMITTEE THAT T-D-H-C-A OPERATES ALL OUR PROGRAMS IN A VERY TRANSPARENT MANNER. 
          WHEN THE AGENCY PROPOSES A RULE CHANGE, WE FIRST ENGAGE THE INTERESTED CONSTITUENCIES AND CONVERSATION TO UNDERSTAND WHAT THE IMPACTS MIGHT BE. 
          WE DO THIS THROUGH PUBLIC ROUND TABLES AND ONLINE FORUMS. WE ALSO HAVE OPPORTUNITY FOR PUBLIC COMMENT AT OUR GOVERNING BOARD MEETINGS, WHICH ARE HELD MONTHLY. 
          ALL OF OUR HEARING LOCATIONS ARE ACCESSIBLE TO ALL WHO CHOOSE TO ATTEND, AND ARE HELD AT TIMES ACCESSIBLE TO BOTH WORKING AND NON-WORKING PERSONS. 
          WE COORDINATE TRANSLATION SERVICES, THE PROVISION OF AUXILIARY AIDS AND OTHER ACCOMMODATIONS AS REQUESTED TO ENSURE EQUAL ACCESS AND OPPORTUNITY TO THE PUBLIC. 
          T-D-H-C-A ALSO MAINTAINS VOLUNTARY EMAIL DISTRIBUTION LISTS, WHICH WE USE TO NOTIFY ALL INTERESTED PARTIES OF POLICY CHANGES, APPLICATION PERIODS, PUBLIC HEARING AND PUBLIC COMMENT PERIODS. 
          PERTINENT INFORMATION IS POSTED AS ANNOUNCEMENT IN THE TEXAS REGISTER ON OUR WEBSITE, TWITTER AND FACEBOOK. 
          PARTICIPATION IN COMMENTS ARE ENCOURAGED AND CAN BE SUBMITTED EITHER AT A PUBLIC HEARING OR IN WRITING VIA EMAIL, UH, REGULAR MAIL OR FAX. 
          SWITCHING GEARS NOW, I'D LIKE TO PROVIDE A BRIEF UPDATE ON THE TEXAS HOMEOWNERS ASSISTANCE FUND AND THE TEXAS RENT RELIEF PROGRAM, WHICH IS IN ITS FINISHING STAGES. 
          THESE PROGRAMS, AS YOU'RE AWARE, UTILIZE FEDERAL FUNDING FROM BOTH CARES AND THE AMERICAN RESCUE PLAN TO STABILIZE HOUSING FOR TEXANS WHO SUFFERED FINANCIAL HARDSHIPS. 
          AS A RESULT OF THE COVID-19 PANDEMIC SO FAR, WITH A HOMEOWNER ASSISTANCE FUND, WE'VE SERVED, UH, ABOUT 8,000 HOUSEHOLDS AND PUT OUT, UH, A LITTLE OVER $62 MILLION. 
          AND THERE'S AN ADDITIONAL 27 MILLION THAT'S RESERVED FOR LOAN MODIFICATIONS. 
          THESE LOAN MODIFICATIONS TAKE LONGER BECAUSE THEY INVOLVE HOMEOWNERS WHO CAN'T REALLY AFFORD THEIR CURRENT ONGOING PAYMENTS. 
          AND WE'RE TRYING TO WORK WITH A SERVICER TO MODIFY THEIR LOAN TO GET SMALLER PAYMENTS, UH, WHICH WE WOULD CONTRIBUTE TOWARDS THAT MODIFICATION WITH RISING INTEREST RATES. 
          THE LOAN MOD PROGRAM IS HAVING SOME CHALLENGES, BUT WE CAN STILL PAY PROPERTY TAXES AND REINSTATE FOLKS THAT ARE BEHIND ON THEIR MORTGAGE THAT CAN CONTINUE TO MAKE THEIR PAYMENTS RELATED TO THE HOMEOWNER ASSISTANCE FUND. 
          WE'RE IN THE PROCESS OF CONTRACTING WITH A GROUP OF SUBRECIPIENTS TO PROVIDE PHYSICAL INTAKE CENTERS IN ADDITION TO OUR ONLINE PORTAL, UH, ALSO HOUSING COUNSELING SERVICES AND LEGAL SERVICES. 
          FOR NOW, WE HAVE AN 800 NUMBER AND A WEBSITE, TEXAS HOMEOWNER ASSISTANCE.COM. 
          TO DATE, 28,000 APPLICATIONS HAVE BEEN SUBMITTED AND WE'VE APPROVED ABOUT 9,500 AND HAVE ANOTHER 10,000 OR SO IN REVIEW. 
          UH, WE HAVE MORE THAN 600 MILLION STILL AVAILABLE FOR THOSE WHO QUALIFY FOR ASSISTANCE. 
          UH, LASTLY I'LL CONCLUDE WITH A, AN UPDATE ON THE TEXAS RENT RELIEF PROGRAM, WHICH WE DISCUSSED A LOT LAST SESSION. 
          WE'RE IN THE FINAL STAGES POLLING THOSE APPLICANTS WHO ARE IN LINE TO BE FUNDED AND HAVEN'T BEEN ASSISTED YET TO SEE IF THEY STILL HAVE ANY, ANY NEED FOR AID. 
          OVERALL, WE'VE DISPERSED MORE THAN 2 BILLION TO MORE THAN 310,000 HOUSEHOLDS. 
          UM, THAT EQUATES TO ABOUT 1.7 MILLION TEXANS. 
          A SUBSET OF THAT 21,000 HOUSEHOLDS WERE IN THE EVICTION DIVERSION CASES. 
          82% OF THE HOUSEHOLDS SERVED WERE AT OR BELOW 50% AREA MEDIAN INCOME. 
          AND WITH, UH, WE GOT 47.8 MILLION IN ADDITIONAL REALLOCATED FUNDS THAT WE CONTINUE TO, TO DOLE OUT, UM, UNTIL THE REMAINING FUNDS ARE ARE ALLOCATED. 
          WE ALSO HAVE HAD SOME MONEY IN RECAPTURE THAT WE'VE BEEN ABLE TO, TO PUT OUT TO THOSE THAT ARE STILL LEFT IN LINE. 
          UM, WE DO EXPECT A POSSIBLE ANOTHER REALLOCATION. 
          I DON'T KNOW WHEN, AND I DON'T KNOW HOW MUCH SO IT, IT'S HARD TO PLAN. 
          AND, UM, THAT CONCLUDES MY, MY PREPARED TESTIMONY AND I'M, I'M HAPPY TO ANSWER ANY QUESTIONS THAT THE MEMBERS MAY HAVE. 
          THANK YOU. 
          DIRECTOR WILKINSON. 
          UH, MEMBERS, DO WE HAVE ANY QUESTIONS FOR THE DIRECTOR? REPRESENTATIVE JAR JOHNSON? DID YOU HAVE, HOW YOU DOING MR. WILKINSON? THANKS FOR COMING DOWN AND GIVING THE INFORMATION. 
          DID ALL THE INFORMATION THAT YOU JUST HAD, DID YOU, IS THAT IN A, A FILE OR SOME KIND OF HANDOUT YOU CAN BE PREPARED TO GIVE TO US? I COULD, I COULD HAVE SOMETHING SENT TO YOU. 
          YES. 
          YES, SIR. 
          THAT'D BE GREAT. 
          YEAH. 
          UM, IN RESPECT TO, TO ALL THE HOUSING CRISIS THAT WE'RE IN RIGHT NOW ACROSS THIS COUNTRY, I MEAN, TEXAS MAY BE IN A LITTLE BIT BETTER POSITION, BUT I THINK WE'RE, OUR HOUSING STOCK IS, IS VERY, VERY, VERY LOW. 
          AND, AND IT'S, IT IS DRAWING A VERY BLEAK, UH, PICTURE, UH, ESPECIALLY FOR THOSE THAT ARE FROM THE LOW INCOME AREAS THAT SIMPLY DON'T HAVE THE, THE INCOME AS THINGS ARE 
          [00:20:01]
GROWING AS THE SUPPLY CHAIN AND COSTS ARE GOING UP, UH, EVERY SINGLE DAY. 
          I MEAN, IT'S OBVIOUSLY DRIVING AFFORDABILITY, UM, AWAY FROM MANY PEOPLE. 
          BUT ONE OF THE THINGS THAT I SEE IS THAT WE'RE NOT REINVESTING MONEY BACK INTO COMMUNITIES. 
          WHEN YOU LOOK AT CERTAIN COMMUNITIES THAT WE'RE BUILDING IN, WE START TO SEE THAT SOME OF THESE COMMUNITIES ARE VOID OF ADDITIONAL SERVICES THAT MAY CREATE ADDITIONAL OPPORTUNITIES FOR EXTRA INCOME. 
          AND IN THIS DAY AND AGE, MANY PEOPLE ARE HAVING TO DO TWO AND THREE JOBS JUST SIMPLY TO GET BY. 
          AS A STATE REPRESENTATIVE, I HAVE SIX 'CAUSE I GET PAID A WHOPPING $7,200 A YEAR. 
          SO AT THE END OF THE DAY, YOU, YOU HAVE TO BE ABLE TO BALANCE. 
          BUT I SEE. 
          BUT WHEN YOU DON'T HAVE MONEY FLOWING IN PARTICULAR COMMUNITIES, THEN YOU LEAVE OUT THE OPPORTUNITY FOR THE BUSINESS COMMUNITY TO LOOK FOR THOSE PARTICULAR COMMUNITIES TO SAY, I WANNA PUT MY BUSINESS HERE, MY RESTAURANT, MY ENTERTAINMENT DISTRICT, UM, YOU KNOW, WHATEVER THE CASE MAY BE, GROCERY STORES, UH, THAT CREATE THE OPPORTUNITY FOR YOUNG PEOPLE TO HAVE JOBS OR ENTRY LEVEL PEOPLE TO HAVE JOBS. 
          UM, HOW DO WE ADDRESS MUCH OF THE DISPARITY IN HOW WE'RE BUILDING? UH, ONE OF THE THINGS THAT I I, I ALWAYS SAID IS THAT WHEN WE START LOOKING INTO THOSE COMMUNITIES AND FINDING WAYS TO CONTRACT WITH THE PEOPLE FROM THOSE COMMUNITIES, 'CAUSE OFTENTIMES WE'RE GOING AND FINDING THESE DEVELOPERS THAT ARE BUILDING AND THEY'RE FROM SOMEWHERE ELSE. 
          THEY'RE HIRING PEOPLE FROM SOMEWHERE ELSE. 
          AND OFTENTIMES THOSE DOLLARS ARE NOT, UM, ARE, ARE NOT, UH, SECULAR. 
          THEY'RE NOT MOVING THROUGHOUT THE COMMUNITY. 
          WE'RE HIRING DEVELOPERS FROM OTHER CITIES THAT ARE THEN BUILDING IN HOUSTON. 
          UH, THEY'RE HIRING PEOPLE FROM OTHER PARTS OF THE CITY, UH, THAT DON'T LIVE IN THAT PARTICULAR COMMUNITY. 
          SO WE'RE PUTTING A HOUSE, BUT WE'RE NOT REINVESTING IF YOU'RE FOLLOWING WHAT I'M SAYING. 
          AND I THINK IT'S IMPORTANT THAT WE START TO LOOK AT HOW DO WE DO A BETTER JOB OF MAKING SURE, BECAUSE THIS IS A DELICATE BALANCE, AND IT'S JUST VERY HARD TO DO, ESPECIALLY IN THIS AREA AND ARENA OF PEOPLE WHO WE'RE TRYING TO, TO SERVE TO, TO BE ABLE TO PROVIDE HOUSING. 
          SO WE HAVE TO DO A BETTER JOB OF MAKING SURE WE BALANCE IT SO THAT THE BUSINESS COMMUNITY WILL CERTAINLY WANT TO BE IN THAT PARTICULAR COMMUNITY THAT WE'RE BUILDING IN, BECAUSE BUSINESSES FOLLOW ROOFTOPS, CERTAIN ROOFTOPS. 
          AND IF WE'RE ONLY BUILDING ALL OF THESE, YOU KNOW, COMMUNITIES THAT ARE CONSIDERED LOW INCOME, THE BUSINESSES ARE NOT COMING. 
          AND THEN THOSE COMMUNITIES AVOID OF, SO THEN YOU HAVE, YOU KNOW, FOOD DESERTS AND, YOU KNOW, NO, NO RESTAURANTS, NO, NO ENTERTAINMENT INDUSTRIES, NO INSURANCE, AND SO FORTH AND SO ON. 
          SO MY COMMENT IS WE HAVE TO DO A MUCH BETTER JOB OF LOOKING AT THE ENTIRE TOTALITY OF THE, THE ISSUE TO MAKE SURE THAT WE'RE ABLE TO ADDRESS THOSE ISSUES WITH THE PEOPLE WHO ARE NOT ABLE, UM, OR WHO WE'RE TRYING TO ADDRESS THIS, THIS, THIS HOUSING DEFICIT TO. 
          SO HOW DO WE GET TO THAT POINT OF MAKING SURE THAT WE'RE BUILDING AND CREATING OPPORTUNITIES FOR, FOR THE LOCAL CONTRACTORS, FOR THE LOCAL PEOPLE THAT LIVE IN THAT COMMUNITY, SO THAT WE CAN SEE THESE, THESE PRECIOUS DOLLARS THAT WE'RE USING, THESE TAXPAYER DOLLARS ARE BEING SECULAR SO THEY'RE CONTINUALLY FLOWING IN AND AROUND THE COMMUNITY AS OPPOSED TO SIMPLY JUST LEAVING OUT THE COMMUNITY. 
          AND ALL YOU HAVE IS A HOUSE, BUT PEOPLE STILL GOTTA PAY TAXES. 
          PEOPLE STILL HAVE TO DO ALL OF THE THINGS THAT HAPPEN IN, IN INSIDE THAT AREA. 
          SO, YOU KNOW, NEED TO BE ABLE TO LOOK AT HOW WE ADDRESS THE, THE LOCAL, UH, PRESENCE OF BUILDING INSIDE OF COMMUNITIES. 
          AND THEN FROM THERE, HOW DO WE FIND THE CONTRACTORS THAT ARE IN THE COMMUNITY BY WHICH, UM, BY WHICH WE'RE BUILDING. 
          UH, YEAH. 
          SO THERE'S KIND OF TWO SIDES TO THAT COIN. 
          YOU KNOW, AS FAR AS DIRECTING TAX CREDIT DEVELOPMENTS, DO WE PUSH THEM WHERE, WHERE, WHERE JOBS ARE AND WHERE, WHERE, WHERE, WHERE THINGS, YOU KNOW, ARE HIGH OPPORTUNITY AREAS, OR DO WE LEAD WITH HOUSING IN AN AREA THAT, THAT MAYBE HASN'T SEEN ENOUGH INVESTMENT? AND, AND TO BE HONEST, WE DO BOTH. 
          UM, WE, YOU KNOW, THE, THE GOAL IS, IS DISPERSION AND, AND TO HELP ALL COMMUNITIES AS, AS MUCH AS WE CAN AS FAR AS, YOU KNOW, WHO, WHO BENEFITS. 
          UM, WE DO HAVE SOME OUTTA STATE DEVELOPERS THAT HAVE COME IN, UH, IN, IN RECENT YEARS. 
          BUT, YOU KNOW, THOSE, THOSE CONSTRUCTION JOBS, THE HAMMER SWINGING, YOU KNOW, THE, THOSE, THOSE ARE LOCAL PEOPLE. 
          UM, AS FAR AS MAKING THE TAX CREDIT DEVELOPMENT KIND OF AN, AN ENGINE OF PROGRESS IN ITSELF, UH, WE INCENTIVIZE, YOU KNOW, OF COURSE NICE AMENITIES, BUT SOME SERVICES AS WELL. 
          SO I, I THINK ESPECIALLY SOME, SOME GROUPS DO A GOOD JOB WITH, UH, AFTERSCHOOL PROGRAMS, ET CETERA, TO, TO HELP FOLKS. 
          I'VE THOUGHT ABOUT, YOU KNOW, SHOULD WE MAKE THESE MORE MIXED USE WITH LIKE A RETAIL EN ENVIRONMENT, UM, ON THE FIRST FLOOR, YOU KNOW, THE, THAT'S A JOB RIGHT THERE. 
          IT'S IN YOUR BUILDING. 
          UM, THERE'S COMPLICATIONS WITH THAT. 
          WE CAN'T SUBSIDIZE THAT PORTION WITH THE TAX CREDITS, BUT IT'S, IT'S DEFINITELY SOMETHING THAT, UH, THAT INTERESTS ME AND THAT 
          [00:25:01]
I, I HOPE WE CAN LOOK MORE INTO IN THE FUTURE. 
          WELL, THOSE ARE THE THINGS THAT WE HAVE TO BE ABLE TO LOOK AT, IS HOW WE HAVE TO BE MORE CREATIVE, BECAUSE WE'RE, WE'RE IN, WE'RE IN VERY TRYING TIMES. 
          WE'RE IN DIFFERENT TIMES. 
          WE'RE, WE ARE IN INFLATION RATES THAT ARE THE HIGHEST IT'S BEEN IN, IN 40 PLUS YEARS. 
          UM, WE HAVE A HOUSING STOCK THAT OBVIOUSLY IS, UM, IS HERE IN THE, AND THE, THE BUILDERS ARE BUILDING, BUT THE COSTS ARE GOING UP. 
          SO, SO AT THE END OF THE DAY, WE HAVE TO FIGURE OUT HOW DO WE DO, WE HAVE TO BE MORE CREATIVE, SO WE HAVE TO LEARN HOW TO COLOR OUTSIDE THE LINES. 
          BUT I, I, I DO WANT TO CHALLENGE A LITTLE BIT ON THOSE HAMMER SWINGERS, WHILE THEY MAY BE, WHEN WE LOOK AT HOUSTON, THEY MAY BE LOCAL TO HOUSTON, BUT THEY'RE NOT LOCAL TO ACRES HOMES. 
          THEY'RE NOT LOCAL TO THE COMMUNITY BY WHICH THEY'RE, THEY'RE SWINGING THAT HAMMER. 
          AND THAT'S THE THING THAT I'M TALKING ABOUT, BECAUSE WHEN YOU, WHEN YOU GET PAID, YOU SHOP WHERE YOU LIVE, YOU SPEND YOUR MONEY WHERE YOU LIVE, AND THAT, THAT KEEPS THOSE BUSINESSES FLOWING AND KEEPS THOSE BUSINESSES GROWING. 
          SO THAT'S WHY I, I'M, I'M OFTEN LOOKING AT EVEN NARROWING DOWN FROM STATE TO COUNTY TO CITY TO NEIGHBORHOOD. 
          LIKE HOW DO WE FIND THOSE NEIGHBORHOOD PEOPLE, UM, SHOWING UP AND DOING THE JOB? BECAUSE THEN THEY'RE SIMPLY RIGHT AROUND THE CORNER AND WE KNOW THEY'RE GONNA, THE, THE GROCERY STORE UNDERSTANDS THAT THEY'RE, THEY'RE THERE AND THEIR MONEY IS THERE. 
          SO THAT'S, I'M, I'M, I'M, I'M NARROWING IT DOWN EVEN FURTHER THAN JUST SIMPLY THE ENTIRE CITY. 
          YOU KNOW, MY DISTRICT IS DISTRICT 1 39, AND I OFTEN CHALLENGED DIRECTORS, UH, UH, UM, I MEAN, DEVELOPERS TO SAY, ARE YOU HIRING PEOPLE FROM THIS COMMUNITY, FROM DISTRICT 1 39 FROM ACRES HOMES? BECAUSE THAT'S HOW THE MONEY CONTINUES TO FLOW. 
          THAT'S HOW THE COMMUNITY GROWS WITHOUT IT JUST SIMPLY FALLING DOWN. 
          AND I KNOW, I MEAN, THAT'S JUST THE EBBS AND FLOWS OF DEVELOPMENT. 
          UM, BUT UNFORTUNATELY, A NEIGHBORHOOD SHOULDN'T HAVE TO DIE BEFORE WE DECIDE TO SAY WE NEED TO BUILD OVER THERE. 
          AND THAT'S HOW THESE NEIGHBORHOODS HAVE GONE. 
          WE'VE, WE'VE, YOU KNOW, DEVELOPERS WANT TO GO IN WHEN THE, THE LAND IS CHEAP. 
          UH, THAT'S, YOU KNOW, BUY LOW, SELL HIGH. 
          BUT AT THE END OF THE DAY, WE, WE SHOULDN'T BE KILLING NEIGHBORHOODS. 
          WE SHOULD BE BOLSTERING THEM IN ORDER FOR THEM TO CONTINUE TO PROGRESS AS OPPOSED TO WAITING FOR SO LONG. 
          AND, AND I THINK YOU SAID IT, AND, AND THAT'S WHY I THINK WE HAVE TO DO, AND IN BOTH, AND THAT'S WHY I, I STILL WANT TO, YOU KNOW, ENCOURAGE THE, THE, THE MIXED USE, HOW WE GET THERE. 
          SO WE HAVE TO, WE HAVE TO WORK WITH THE FEDS ON THAT. 
          WE, WE NEED TO DO THAT WORK WITH THE BANKING COMMUNITY ON THAT. 
          LET'S DO IT. 
          BUT LET'S SEE HOW WE CAN CALL OUTSIDE THE LINES TO KEEP THESE COMMUNITIES BALANCED. 
          YES, SIR. 
          AND I'LL LOOK INTO, UH, WAYS TO INCENTIVIZE EVEN EVEN MORE LOCAL, UM, EMPLOYMENT WITH DEVELOPMENTS. 
          THANK YOU, REPRESENTATIVE. 
          REPRESENTATIVE SLAYTON. 
          YES, SIR. 
          THANK YOU, UH, FOR BEING HERE TODAY AS WELL AS EVERYONE ELSE. 
          IT'S GOOD TO BE HERE WITH YOU. 
          UM, SO WHAT RANGE DO YOU SEE, UH, A PERCENTAGE, UH, LET BACK UP WITH THE PUBLIC PRIVATE PARTNERSHIPS, WHAT PERCENTAGE DO YOU SEE PRIVATE? WHAT PERCENTAGE DO YOU SEE PUBLIC, MAYBE FROM SOME EXISTING, UH, DEALS OR, OR WHERE DO YOU EXPECT THAT RANGE TO BE? SO, SO TAX CREDIT DEVELOPMENT IS A, IS A PUBLIC PRIVATE PARTNERSHIP. 
          MM-HMM . 
          RIGHT? AND SO, UH, WITH THE COMPETITIVE TAX CREDITS, THE NINE PERCENTS THAT'S SUPPOSED TO COVER, SUPPOSED TO, YOU KNOW, SHIFTING COST ENVIRONMENT, ABOUT 70% OF THE, UH, CONSTRUCTION COSTS IS PUBLIC OR PRIVATE. 
          UH, IS, IS, IS PUBLIC, IS IS TAX CREDIT FUNDED, IS THE TAX CREDIT IS, IS THE EQUITY 70 AROUND 70% OR RIGHT AT, RIGHT. 
          AND THE, UH, THE LESS COMPETITIVE TAX CREDITS, UH, ARE ABOUT 40%, 30 TO 40% OF THE CONSTRUCTION COSTS. 
          AND SO IN ANY OF THESE DEALS, UM, IF, UM, THE PROJECT, THE PROGRAM, YOU KNOW, THE HOUSE, WHATEVER, UH, THE, THE HOUSING DEVELOPMENT, IF IT FAILS, WHO'S, WHO'S ON THE HOOK FOR ALL OF THAT? SO I, I GUESS THE LOSS TO THE STATE, IF, IF A DEVELOPMENT GOES, UH, BANKRUPT WOULD BE, UH, THAT IT WOULD WIPE OUT THE LAND USE RESTRICTION AGREEMENT AND THERE WOULD BE A LOSS OF AFFORDABLE AFFORDABILITY, BUT THERE'S NO, LIKE, ADDITIONAL FINANCIAL LOSS FOR THE STATE. 
          OH, I GUESS MAYBE IF WE HAD LOANED THEM MONEY AND WE WERE, UH, SECOND IN LINE, UH, THAT, THAT THOSE DOLLARS WOULDN'T, WOULD NOT BE RETURNED. 
          IT'S VERY RARE. 
          UH, WE TRY TO, UH, UNDER IDEALS TO MAKE SURE THAT, THAT THEY'LL, THEY'LL CASH FLOW, YOU KNOW, FOR THE FORESEEABLE FUTURE. 
          UH, 'CAUSE WE WANT TO PRESERVE THAT AFFORDABILITY, YOU KNOW, FOR 30. 
          AND THEN SOMETIMES IF THEY, UH, IN COMPETITION, IF THEY ELECTED FOR A 45 YEAR, UH, LURA. 
           THANK YOU. 
          OH, I HAVE A COUPLE QUESTIONS, SIR. 
          GARY GATES, UM, YOU SAID THERE'S A 13% INCREASE IN CONSTRUCTION COST, 
          [00:30:01]
IS THAT RIGHT? UM, MY, MY DATA HERE IS, UH, 13.6%. 
          UH, MEDIAN HOME SALES PRICE. 
          OKAY. 
          EXCUSE ME. 
          UH, UH, MEDIAN FAMILY INCOME WAS 13.6%. 
          MEDIAN HOME SALES, 17.4%. 
          THE POINT WAS, YOU KNOW, OKAY. 
          WHAT ABOUT CONSTRUCTION COSTS? DID YOU HAVE A FIGURE FOR CONSTRUCTION COSTS, TALKING TO TAX CREDIT DEVELOPERS? I DON'T, I DON'T HAVE ANY, ANY DATA IN FRONT OF ME, BUT, YOU KNOW, THEY TALK ABOUT 20% YEAR OVER YEAR, UM, INCREASES. 
          IT DEPENDS ON WHERE THEY ARE AND OKAY. 
          WELL, WHAT, WHAT I'M TRYING TO GET IS WHAT DO YOU KNOW IS THE COST OF CONSTRUCTION PER FOOT TO BUILD A NEW PROJECT? IT, IT VARIES ON, YOU KNOW, IF IT'S LIKE A WALK UP GARDEN STYLE OR IT'S A PODIUM WITH A, WITH A GARAGE. 
          I, I, I DON'T KNOW. 
          I'D HAVE TO GET BACK TO YOU. 
          WE HAVE, WE HAVE A RANGE, UM, BUT MAYBE ONE 60 I I ISH. 
          OKAY. 
          IS THAT THE, YOU SAID THERE WAS 12,900 UNITS BUILT LAST YEAR? YES. 
          AWARDED. 
          THEY, THEY WOULDN'T NECESSARILY BE BUILT RIGHT AWAY AWARDED. 
          RIGHT. 
          AND THAT WOULD BE NEW CONSTRUCTION. 
          UH, A COMBINATION OF, UH, NEW CONSTRUCTION AND, AND RE REHAB. 
          OH, REHAB. 
          YEAH. 
          WHEN YOU DO THE AND ALL OF THAT, THEY, EACH ONE OF THOSE, YOU HAVE TO PROVIDE A CERTAIN NUMBER OF UNITS AT A CERTAIN INCOME LEVEL, RIGHT? YES. 
          AND DOES YOUR AGENCY MONITOR TO ENSURE COMPLIANCE THAT THEY HAVE THOSE UNITS AT CERTAIN A INCOME IS BEING MET? HOW, HOW IS THAT MONITORED? Y YES, WE HAVE A, A PRETTY INTENSE COMPLIANCE REGIME. 
          UM, WE DO BOTH, DO YOU KNOW, DESK REVIEWS AND ONSITE INSPECTIONS, SO BOTH PHYSICAL INSPECTIONS FOR LIKE THE, THE PROPERTY QUALITY OF THE UNITS, AMENITIES, ET CETERA. 
          AND THEN, UH, FILE REVIEWS TO MAKE SURE THAT, THAT EVERYONE'S BEEN CHECKED OUT TO MAKE SURE THEY'RE THE PROPER INCOME, ET CETERA. 
          AND DO YOU DO THAT ON AN ANNUAL BASIS? SO, UH, PROPERTIES USUALLY GET, GET INSPECTED PHYSICALLY EVERY THREE YEARS. 
          I THINK THE FILE REVIEWS WOULD BE A LITTLE MORE, UM, OFTEN THAN THAT. 
          IF A PROPERTY HAS HAD SOME COMPLAINTS, UM, OR THEY HAVE A LOW SCORE, THEN THEY'LL GET ON ACCELERATED INSPEC INSPECTION SCHEDULE, YOU KNOW, EVERY, EVERY YEAR, MAYBE EVERY SIX MONTHS. 
          DEPENDS ON THE SEVERITY OF THE PROBLEM. 
          SO THE COMPLIANCE MONITORING IS ONGOING AND YOU'RE VERIFYING THE INCOME AND THE, UH, WHATEVER UNITS ARE BEING PROVIDED AT CERTAIN AM A MI LEVELS THAT'S BEING MONITORED ANNUALLY, BUT YOU GO OUT AND INSPECT AT LEAST EVERY THREE YEARS? YES, SIR. 
          IS THAT FOR THE ENTIRE TIME THAT THE LUR IS IN PLACE? YES, SIR. 
          AND EVEN IF IT SELLS TO SOMEONE ELSE, IT STILL REMAINS UNDER THE LUR AND YOUR AGENCY CONTINUES TO MONITOR IT, CORRECT? YEAH. 
          THE ONLY THING THAT WOULD WIPE OUT THE LAURA WOULD, WOULD, IT WOULD BE, I THINK BANKRUPTCY, LIKE I SAID, OR TIME, YOU KNOW, IT WOULD, IT WOULD LAPSE EVENTUALLY. 
          I DIDN'T HEAR YOU MENTION P PFCS. 
          WHAT, UH, ARE THEY NOT IN ANY WAY UNDER YOUR JURISDICTION? UH, CORRECT. 
          THERE, THERE MIGHT BE, UH, A PFC THAT ISSUES PRIVATE ACTIVITY BONDS, AND THEY MEET THE 50% TEST GO OVER THREE 50%, AND WE MEET THEM WITH THE 4% TAX CREDITS. 
          BUT THE, THE SUBJECT LAST SESSION, WHICH, WHICH WAS NOT INVOLVED TAX CREDITS, THEY WERE JUST PFC DEALS, WERE NOT INVOLVED IN ANY WAY. 
          IT'S A PUBLIC FACILITY CORPORATION, AND THEY HAVE CERTAIN PARAMETERS THEY HAD TO MEET TO CERTAIN INCOME LEVELS. 
          WHO, WHO, IF YOU DON'T MONITOR THEM, WHO, WHO DOES, I GUESS THEY, THEY HAVE GUARDRAILS IN STATUTE. 
          AND THEN, UM, WHEN THE CREATIONS OF THE CITY, I, THIS IS OUTTA MY REALM OF EXPERTISE, BUT IF YOU WANNA GIMME THEIR BOND CAP, I'LL TAKE IT . 
          H HOW, OKAY. 
          WOULD IT JUST TAKE SIMPLE IF THERE'S IS NO ONE MONITORING THEM? NOW? I, IS THAT SOMETHING THE AGENCY COULD MONITOR IF IT WAS ALLOWED THROUGH LEGISLATION THAT THAT WOULD BE A NEW DIRECTION FOR US? KIND OF A, A REGULATORY ROLE. 
          I OFTEN GET CALLS MORE ABOUT HOUSING AUTHORITIES THAN PFCS AND I, YOU KNOW, I HAVE TO TELL THE PERSON I'M, I'M SORRY, I CAN'T, YOU KNOW, INTERCEDE ON YOUR BEHALF WHEN, FOR THIS LOCAL HOUSING AUTHORITY YOU NEED TO GO TO GO TO HUD. 
          UM, SO YEAH, HAVE US HAVING SOME KIND OF OVERSIGHT ROLE ON PFCS. 
          I, I DON'T EVEN KNOW WHAT THAT WOULD LOOK LIKE, BUT, UM, HAPPY TO WORK WITH YOU ON IT AND, UH, AND DISCUSS AND WE'LL, WE'LL DO WHATEVER STATUTE REQUIRES. 
          HAVE YOU EVER HEARD COMPLAINTS ABOUT THE PFCS? 
          [00:35:01]
UM, I, YOU KNOW, I SAW THE ARTICLE THAT CAME OUT A FEW YEARS AGO, AND THEN THE UNIVERSITY OF TEXAS REPORT, AND THEN, UH, OF COURSE, YOU KNOW, SAW YOU AND OTHER MEMBERS, UH, WITH SOME FILE BILLS LAST SESSION. 
          AND IT WAS, IT WAS INTERESTING. 
          UM, AND, UH, BUT I, BECAUSE WE WEREN'T INVOLVED, I, I, I DIDN'T DO ANY KIND OF LIKE, DEEP DIVE INTO IT. 
          IF THE, THE TAX BENEFITS, LET'S SAY IN PSCS, YOU GET PROPERTY TAX EXEMPTION AND YOU GET SALES TAX EXEMPTION IF IT'S A NEW DEVELOPMENT AND THEY TOTAL UP TO A CERTAIN AMOUNT, AND OF COURSE EVERY YEAR THE PROPERTY TAXES IS ONGOING, YOU GET THE EXEMPTION. 
          YOU WOULD AGREE THAT THE BENEFIT TO THE OWNER, THERE SHOULD BE SOME EQUALNESS IN THE BENEFITS OF BEING GIVEN TO THE RESIDENTS IN REDUCED RENTS. 
          SH SHOULD THERE NOT BE OR SHOULDN'T IT BE, YOU WOULD AGREE THAT THAT MAKES SENSE. 
          AND MY UNDERSTANDING WAS THEY WERE TARGETING 80% AREA MEDIAN INCOME. 
          I DON'T KNOW. 
          WAIT, IF THEY DID REDUCE RENTS AS WELL, AND I DON'T KNOW HOW THAT WAS MEMORIALIZED, IF THEY HAVE A, A LAND USE RESTRICTION AGREEMENT, LIKE, LIKE WHAT WOULD BE ON ONE OF OUR PROPERTIES? UM, YOU KNOW, I HAVEN'T BEEN A PARTY TO THOSE, THOSE, THOSE CONTRACTS. 
          AT SOME POINT, THE VALUE OF THOSE TAX BENEFITS WOULD ONLY GET YOU SO FAR. 
          LIKE I, I THINK THAT IF YOU HAD A BILL, IT WAS LIKE, MAKE 'EM ALL 30% A AMI UNITS, IT JUST, IT WOULD NOT UNDERRIDE IT WOULDN'T WORK. 
          UM, BUT CERTAINLY THERE'S SHOULD BE SOMETHING THAT THAT COULD BE DONE. 
          I WOULD IMAGINE THEY SHOULDN'T BE BUILT IN THE 80% IF THEY'RE RENT, YOU KNOW, LET, LET, LET'S SAY THEY HAVE 50% NEED TO BE RENTED TO PEOPLE WHO MAKE 80% OF A MI. 
          AND YOU SAID 30% OF THAT NUMBER CAN GO TOWARD RENT. 
          THAT'S THE 30%. 
          SO IF YOU HAD THEM FOR 30% A MI UNITS, MEANING? NO, NO, NO. 
          OKAY. 
          I SAID IF TAKE, UH, IF YOU RENT TO SOMEONE, IF THE STIPULATION IS YOU HAVE TO RENT A CERTAIN NUMBER OF UNITS TO PEOPLE WHO MAKE 80% OF THE AVERAGE A MI MM-HMM . 
          THE MAXIMUM RENT YOU COULD CHARGE FOR THAT PERSON IS 30% OF THEIR INCOME. 
          SO, SO THOSE, UH, 80% A MI RENTS 60% A MI RENTS 50 30. 
          THE, THOSE ARE ALL, UM, SET OUT IN, UH, LIKE BASED OFF A FORMULA FROM HUD FAIR MARKET RENTS. 
          IT'S NOT ABOUT THEIR NECESSARILY WHAT THEIR INCOME IS. 
          IT'S NOT CALCULATED THAT WAY, LIKE A HOUSING VOUCHER. 
          UM, UM, YOU KNOW, RENT FROM A TENANT WOULD BE, IT'S JUST, YOU KNOW, IF YOU'RE AN 80% UNIT, IT'S THIS MUCH FOR ONE BEDROOM AND THIS MUCH FOR A TWO BEDROOM AND THAT, YOU KNOW, COUNTY. 
          SO IT, IT'S NOT CALCULATED ON THEIR EXACT INCOME. 
          DOES THAT MAKE SENSE? WELL, NOT OKAY. 
          IF, IF IN THAT COUNTY, LET'S SAY THE AVERAGE A MI IS 60,000, WE'RE GONNA LEASE TO SOMEONE WHO MAKES, WHOSE INCOME IS 80% OF THAT A MI. 
          SO IT'D BE 80% OF 60,000. 
          YOU AGREE 80% OF 60 IS $48,000. 
          NOW WHAT DON'T YOU SAY THAT THE, WHAT THEY APPLIED, YOU CAN'T HAVE A RENT THAT'S MORE THAN 30% OF THAT. 
          SO, SO THE, THE, THE RENTS FOR, FOR TAX CREDIT PARTIES, IT WOULD JUST BE AN 80% UNIT IN THIS, IN THIS COUNTY IS IS THIS MUCH PER MONTH, YOU KNOW, FOR ONE BEDROOM AND THIS MUCH FOR TWO BEDROOM RE REGARDLESS OF THEIR EXACT INCOME, IT, IT IS POSSIBLE THAT IT COULD BE OVER 30% OF THEIR INCOME. 
          YOU PROBABLY WOULDN'T BE. 
          OKAY, LET'S SAY AFTER, OKAY, AFTER THE ADJUSTMENT, 80% OF A MI IS 49,600. 
          IF YOU TAKE 30% OF THAT ON A MONTHLY BASIS, THAT WOULD BE ABOUT $1,240 FOR RENT. 
          BUT YOU'RE SAYING THAT IF THE RENT'S $1,400, THEY HAD TO PAY THE MORE THAN 30% OF THEIR INCOME TO HAVE THAT? YES. 
          WELL, HOW DOES THAT MATCH THE 80% OF A MI THEN, BECAUSE I MEAN, THEY'RE, THEY'RE HAVING TO USE 35% OF THEIR INCOME OF 80% OF A MI IS, IT IS. 
          WELL, WHERE'S THE BREAK TO THE TENANT THEN? IF THERE'S NO, IF YOU JUST CHARGE WHATEVER YOU WANT? WELL, YOU CAN'T CHARGE WHATEVER YOU WANT. 
          YOU'RE, IT'S, IT'S, IT'S LAID OUT, YOU KNOW, BASED OFF OF A, LIKE A HUD FORMULA EVERY YEAR. 
          FAIR MARKET RENTS, AND IT'S, IT'S REDUCED, IT'S BELOW MARKET. 
          OKAY. 
          IT MIGHT NOT NECESSARILY BE BELOW 30% OF THEIR, UH, HOUSEHOLD INCOME PROBABLY USUALLY WOULD BE, BUT IT, IT IS, IT IS BELOW MARKET RENT THAT'S, THAT'S SET. 
          AND THAT, THAT CAN'T BE RAISED UNTIL HUD RAISES 'EM AGAIN. 
          MAYBE THAT'S WHERE WE'RE, 
          [00:40:01]
I'M GETTING CONFUSED. 
          THE TYPICAL HUD IS 30%, THAT, THAT'S TYPICALLY WHAT THEY, IT'S 35% IF YOU ADD UTILITIES, 30% IF IT'S JUST STRAIGHT RENT. 
          RIGHT. 
          SO PEOPLE THAT HAVE HAVE, HAVE LIKE SECTION EIGHT VOUCHERS, IT'S, IT'S, IT'S THAT WAY. 
          BUT THESE TAX CREDIT UNITS ARE NOT, UM, HELD TO EXACTLY THEIR INCOME. 
          IT, THEIR, THEIR SET RENTS. 
          UM, IT'S JUST DIFFERENT. 
          OKAY. 
          WHATEVER THAT RENT IS AT THE END OF THE DAY, IT SHOULD BE. 
          IF THE MARKET RENT, IS THAT RENT, HOW IS THE TENANT THEN BEING HELPED? THE TENANT WOULD BE PAYING BELOW MARKET RENT IF IT WOULD, IT WOULD NEED TO BE BELOW MARKET RENT, RIGHT? CORRECT. 
          AND SO IF IT'S NOT BELOW THE MARKET, THERE'S NO BENEFIT TO THE TENANT. 
          AND IF A PFC DEVELOPMENT IS BUILT AND ITS MARKET RENT IS THE SAME AS THE NEIGHBORS, EVEN THOUGH THEY'RE GETTING ALL THESE TAX BENEFITS, THERE'S NO, THERE'S NO REAL BENEFIT TO, TO THE RESIDENT. 
          IS THERE THAT WOULD SEEM TO BE THE CASE. 
          YES, SIR. 
          YES. 
          OKAY. 
          UM, OKAY. 
          THANKS. 
          THANK YOU. 
          THANK YOU. 
          REPRESENTATIVE MEMBERS. 
          ANY OTHER QUESTIONS FOR THE DIRECTOR, LIZ? OKAY. 
          THANK YOU SO MUCH, DIRECTOR FOR BEING HERE TODAY. 
          IT'S WONDERFUL TO SEE YOU. 
          THANK YOU FOR ALSO FOR THE UPDATE ON THE RENT RELIEF PROGRAM. 
          THANK YOU CHAIRMAN. 
          THANK YOU. 
          MEMBERS. 
          NEXT PROVIDING TESTIMONY WE HAVE FROM THE HOUSTON HOUSING AUTHORITY, DAVID NORTHERN DAVID, IT'S GOOD TO SEE YOU. 
          IF YOU COULD PLEASE STATE YOUR NAME, UH, WHO YOU REPRESENT. 
          THANK YOU. 
          AND YOU CAN BEGIN YOUR TESTIMONY. 
          YES, SIR. 
          MY NAME'S DAVID NORTHERN. 
          I'M THE PRESIDENT C OF THE HOUSTON HOUSING AUTHORITY. 
          I'M ALSO THE PRESIDENT OF THE PUBLIC HOUSE AUTHORITY DIRECTORS ASSOCIATION OUTTA DC WE REPRESENT CLOSE TO 1900 HOUSING AUTHOR THROUGHOUT THE NATION WITH 1.9 PUBLIC HOUSING UNITS. 
          THAT ORGANIZATION IS SET TO FOCUS ON A POLICY AND GUIDANCE FROM THE DEPARTMENT OF HOUSING URBAN DEVELOPMENT THAT OVERSEES LOCAL HOUSING AUTHORITIES. 
          IN TEXAS, FOR EXAMPLE, IS THREE THREE HUNDRED AND NINETY NINE HOUSE AUTHORITIES THROUGHOUT THE JURISDICTION. 
          SO HOUSTON IS THE LARGEST, WE'RE THE, UM, THIRD LARGEST VOUCHER PROGRAM IN THE NATION. 
          WE OVER 18,000 VOUCHERS AND THE CLOSE TO THE SIX, UH, LARGEST HOUSING AUTHORITY IN THE NATION ALSO. 
          SO I WANNA SAY THANK YOU FOR ALLOWING US TO SPEAK ON THIS IMPORTANT MANNER FROM THE GUIDANCE OF THE HOUSTON HOUSING AUTHORITY. 
          WE SERVE OVER 70,000 CITIZENS HERE IN THE HOUSTON JURISDICTION. 
          WE ALSO REALLY FOCUS TOWARD WORKFORCE HOUSING, AS YOU MENTIONED EARLIER, THEY'RE 30% OF INCOME. 
          SO OUR WHOLE GOAL IS TO MOVE TOWARD INDIVIDUALS COMING OFF OF THE PROGRAM. 
          SO WE CAN'T HOUSE OTHERS. 
          WE CURRENTLY HAVE OVER 71,000 CITIZENS ON A WAIT LIST FOR UNITS. 
          AND WE SEE RENTS INCREASING. 
          WE SEE A NUMBER OF, UM, ISSUES AND BARRIERS ALONG WITH HAVING A DECREASED AMOUNT OF ONE BEDROOM UNITS. 
          SO IT'S REALLY HOUSED. 
          THAT'S THE BIGGEST NEED RIGHT NOW IN ORDER TO HOUSE INDIVIDUAL ONE BEDROOM UNITS, ESPECIALLY ALONG OUR, UM, THE HOMELESS POPULATION. 
          WE HAVE A NUMBER OF PROGRAMS THAT HELP THE POPULATION HERE IN THE CITY OF HOUSTON. 
          WE HAVE OUR SECTION EIGHT HOME, UM, SECTION EIGHT, THE HOUSING CHOICE VOUCHER PROGRAM. 
          WE HAVE OUR PUBLIC HOUSING PROGRAM AND WE USE A NUMBER OF TOOLS TO CREATE NEW AFFORDABLE HOUSING UNITS, WHETHER IT'S BRAND NEW CONSTRUCTION OR IT'S ACQUISITION OPPORTUNITIES. 
          JUST RECENTLY, THE HOUSTON HOUSING AUTHORITY WAS AWARDED FROM THE DEPARTMENT OF HOUSING URBAN DEVELOPMENT, WHAT WE CALL A MTW PROGRAM, MOVE THE WORK. 
          AND SO THAT PROGRAM ALLOWS US TO HAVE SPECIALIZED ACTIVITIES LOCALLY TO ADDRESS THE NEEDS OF OUR CITIZENS HERE IN HOUSTON. 
          ONE OF THE GOALS WE ARE ALSO WORKING TOWARD IS TO HAVE A FLEXIBILITY WITH THE MTW PROGRAM. 
          FOR EXAMPLE, HOUSTON HOUSE AUTHORITY, SAN ANTONIO HOUSING AUTHORITY, AND I BELIEVE DALLAS MAYBE HAS THAT PROGRAM, MAYBE NOT DALLAS, MAYBE FORT WORTH. 
          BUT WE'RE LOOKING AT HOW WE CAN UTILIZE THAT PROGRAM FOR OTHER HOUSING AUTHORITIES IN OUR JURISDICTIONS SO WE CAN HAVE MATCH PROGRAMS AND WE CAN DEVELOP MORE AFFORDABLE HOUSING AND UTILIZE THOSE PROGRAMS TO HELP. 
          IN TERMS OF WORKFORCE, CURRENTLY WE'RE LOOKING AT GOALS TO CREATE AN INCUBATOR FOR OUR CLIENTS FAR AS JOB TRAINING WORKFORCE, AND CONTINUALLY MAKE PARTNERSHIPS THROUGHOUT, UM, HOUSTON, BUT WE ALSO CREATE A SHARED OFFICE SPACE. 
          SO WHEN WE CREATE SMALL, UM, OR MINORITY BUSINESSES, THEY CAN WORK LOCALLY, THEY CAN HAVE AN OFFICE SETTING, FOR EXAMPLE. 
          ONE EXAMPLE IS THAT, IS THAT SOME OF THE CLIENTS THAT MAY START BUSINESSES SUFFER BECAUSE THEY DON'T UNDERSTAND THE FINANCES OR MAY 
          [00:45:01]
NOT DON'T UNDERSTAND HOW TO FILL OUT THE PAPERWORK THAT'S NECESSARY. 
          SO IN THAT INCUBATOR OR SHARED OFFICE SPACE, WE WILL HAVE THOSE TYPE OF FACILITIES TO HELP TRAIN AND SHOW THEM HOW TO DO THAT AND TO WORK ON THAT. 
          SO THEY CAN'T BE SUCCESSFUL BUSINESS OWNERS. 
          MR. WILKINSON DID A GREAT JOB EXPLAINING SOME OF THE PROGRAMS. I WON'T GO INTO DEEP DIVE OR WHAT A 9% TAX CREDIT IS OR WHAT A 4% TAX CREDIT IS, BUT THOSE ARE ONE OF THE, THE MAIN AND ONLY TOOLS THAT WE HAVE AS A PUBLIC HOUSING AUTHORITY TO CREATE AND DEVELOP UNITS. 
          HUD'S NOT FUNDING NEW PUBLIC HOUSING UNIT DEVELOPMENT, BUT WE CAN UTILIZE OUR RESOURCES TO PARTNER IN TERMS OF PUBLIC, PUBLIC PRIVATE PARTNERSHIPS TO CREATE, UM, MORE AFFORDABLE HOUSING, AS MR. WILKINSON SAID EARLY. 
          ALSO, IT IS A MAJOR GAP, ESPECIALLY WHEN WE'RE TALKING ABOUT 4% TAX CREDITS. 
          AND SO WE HAVE GREAT PARTNERS LIKE THE CITY OF HOUSTON AND OTHER PARTNERS THAT WE WORK WITH TO ENSURE WE CAN CREATE AFFORDABLE HOUSING AND REPLACE A NUMBER OF UNITS THAT WAS LOST IN THE STORMS. AND SO I JUST WANNA SAY THANK YOU FOR ALLOWING ME TO COME UP HERE AND JUST TALK A LITTLE BIT ABOUT THE HOUSTON HOUSE AUTHORITY, AND THANK YOU FOR TAKING THIS CHARGE. 
          IT'S SOMETHING THAT'S VERY IMPORTANT TO THE CLIENTS THAT WE SERVE, AND WE SERVE SOME OF THE COMMUNITY'S MOST VULNERABLE. 
          AND I'M HAPPY TO BE ABLE TO REPRESENT THE HOUSTON HOUSE AUTHORITY HERE, BUT ALSO I'M HAPPY TO BE ABLE TORE TO REPRESENT HOUSE AUTHORITIES ACROSS THIS NATION. 
          THANK YOU. 
          THANK YOU, MR. NORTHERN MEMBERS. 
          ANY QUESTIONS? REPRESENTATIVE SLEIGHTON? HELLO. 
          UM, SO HAVE YOU HAD ANY CHURCHES, UH, REACH OUT AND TRY TO HELP WITH THE HOUSING PROBLEM, OR HAS IT MAINLY BEEN PUBLIC, PRIVATE, LIKE WITH GOVERNMENT AND INVESTORS AND BUILDERS, OR HAVE YOU HAD ANY CHURCHES REACH OUT AND TRY TO TAKE A SIGNIFICANT ROLE WITH HELPING WITH THE HOUSING CRISIS? YES. 
          UM, LOCALLY AND THROUGHOUT THE NATION, CHURCHES ARE GETTING THE BUSINESS OF HELPING DEVELOP HOUSING. 
          UM, CHURCHES HAVE A LOT OF LAND AND A LOT OF TIMES, RIGHT? AND SO THEY'RE UTILIZING SOME OF THEIR FUNDS TO PURCHASE LAND, BUT ALSO TO HELP DEVELOP AFFORDABLE HOUSING, ESPECIALLY FOR SENIORS, PEOPLE WITH DISABILITIES THROUGHOUT THE UH, AREAS. 
          THANK YOU. 
          REPRESENTATIVE MEMBERS. 
          ANY OTHER QUESTIONS? THANK YOU SO MUCH FOR BEING HERE TODAY AND PROVIDING TESTIMONY. 
          THANK YOU. 
          ASK DO WE, UM, HASN'T FOUND OUT BEFORE. 
          OKAY. 
          DO WE HAVE FROM THE TEXAS AFFILIATION, AFFORDABLE HOUSING PROVIDERS? UH, DR. 
          JIM GAINES HERE. 
          DR. GAINES. 
          OKAY. 
          CHAIR CALLS ROGER ARIAGA AND JEAN LA LARA FROM THE TEXAS AFFILIATION ON AFFORDABLE HOUSING PROVIDERS. 
          IT'S NICE TO SEE Y'ALL AGAIN. 
          IF YOU COULD PLEASE BOTH STATE YOUR NAME AND WHO YOU'RE WITH FOR THE RECORD. 
          AND, UM, JUST SO THE AUDIENCE KNOWS, NEXT ON DECK WILL BE, UM, MICHAEL WILKES OR DAVID LONG WITH THE TEXAS STATE AFFORDABLE HOUSING CORPORATION. 
          IF YOU WANNA COME ON UP AND SIT AT THIS FRONT TABLE, UM, TO PREPARE. 
          OKAY. 
          SO PLEASE STATE YOUR NAME FOR THE RECORD. 
          THANK MR. CHAIRMAN, UH, COMMITTEE MEMBERS. 
          MY NAME IS ROGER ARGA. 
          I'M EXECUTIVE DIRECTOR OF THE TEXAS AFFILIATION OF AFFORDABLE HOUSING PROVIDERS. 
          UH, I MIGHT START BY JUST GIVING A LITTLE CLARIFICATION. 
          SO, UH, DR. GAINES REPRESENTS THE TEXAS A AND M REAL ESTATE CENTER, SO THEY ARE THEIR OWN ENTITY, AND WE THOUGHT IT WOULD BE A GOOD SUGGESTION THAT HE MIGHT PROVIDE SOME INFORMATION OR DATA, WHICH I'M SURE HE'D BE WILLING TO PROVIDE AS YOU WOULD REQUEST. 
          BUT THAT BEING SAID, LET ME START BY SAYING THAT WE THANK YOU SO MUCH FOR INVITING OUR TESTIMONY TODAY. 
          UH, THE TEXAS AFFILIATION OF AFFORDABLE HOUSING PROVIDERS OR TAP IS THE LARGEST STATEWIDE AFFORDABLE HOUSING TRADE ORGANIZATION REPRESENTING THE OWNERS, BUILDERS, FUNDERS, DEVELOPERS, AND OTHERS WHO WORK TO BRING CAPITAL AND EXPERTISE TO THE ISSUE OF AFFORDABLE HOUSING. 
          UH, THEY SPECIFICALLY FOCUS ON ISSUES INVOLVING TAX CREDITS, BOND FINANCING, AND OTHER SOURCES INTENDED TO SUPPLEMENT THE DEVELOPMENT OF SAFE, QUALITY AND AFFORDABLE HOUSING FOR THE WORKING FAMILIES OF TEXAS. 
          WE TRULY APPRECIATE THIS COMMITTEE'S INTEREST AND FOCUS ON THE CHALLENGES FACING WORKFORCE HOUSING. 
          THERE ARE A NUMBER OF FINANCIAL ISSUES IMPACTING WORKING FAMILIES TODAY, HEALTHCARE EDUCATION, RISING FOOD PRICES, CHILDCARE, HOUSING COSTS. 
          OF COURSE, IT IS BECOME INCREASINGLY DIFFICULT FOR MIDDLE INCOME WORKERS TO FIND HOUSING IN AREAS IN WHICH THEY WORK, WHETHER IT'S TO BUY OR TO RENT. 
          SOME MIGHT BE ATTRIBUTABLE TO WAGES NOT KEEPING UP WITH THE INCREASING COST OF LIVING, BUT IT'S ALSO DUE TO THE LIMITED SUPPLY OF HOUSING THAT IS PRICED AT LEVELS THAT THESE WORKERS SIMPLY, UH, CANNOT AFFORD. 
          WHAT WE CAN TELL YOU FOR SURE IS THAT REGARDLESS OF FINANCIAL CIRCUMSTANCES OF THESE 
          [00:50:01]
FAMILIES, THEY WILL GO TO ANY LENGTH TO BE SURE THEIR FAMILIES ARE FED AND THAT THERE IS A ROOF OVER THEIR HEADS. 
          WHAT THIS MEANS IS THAT THEIR DISPOSABLE INCOME AVAILABLE TO THEM IS BASICALLY NON-EXISTENT. 
          WHEN THEY'RE SPENDING THE REST, MOST OF THEIR INCOME ON HOUSING AND FOOD, THERE'S LITTLE TO NOTHING LEFT FOR HEALTHCARE, TRANSPORTATION, OR CHILDCARE. 
          AND THESE WORKING FAMILIES, THEY, THEY'RE SIMPLY TRYING TO MAKE THEIR ENDS MEET. 
          FOR MANY OF THESE FAMILIES, HOME OWNERSHIP REMAINS WELL OUT OF REACH. 
          AS A RESULT, THE DEMAND FOR HIGH QUALITY, AFFORDABLE RENTAL PROPERTIES IS SIGNIFICANTLY INCREASED. 
          THE PANDEMIC AND SUBSEQUENT ECONOMIC CHALLENGES HAVE MADE THESE ISSUES MORE ACUTE. 
          AND WHILE TEXAS IS ONE OF THE STRONGEST ECONOMIES IN THE COUNTRY, THERE IS A LIMIT TO THAT SUCCESS. 
          THAT CONSTRAINT IS ULTIMATELY RELATED TO HOUSING AFFORDABILITY AND THE OPPORTUNITY FOR THE WORKFORCE THAT KEEPS IT MOVING. 
          HOUSING AFFORDABILITY IS VERY COMPLEX. 
          THAT MAKES IT MORE DIFFICULT TO ADDRESS BECAUSE THE CURRENT LACK OF SUPPLY ACROSS ALL HOUSING TYPES AND IT ALL PRICE RANGES, BUT THE IMPACTS ARE FELT HARDEST ON LOW AND MODERATE INCOME FAMILIES, THOSE NEEDING WORKFORCE HOUSING FOR A LONG TIME. 
          NOW, THE HOUSING SUPPLY IS SIMPLY NOT KEPT UP WITH THE DEMANDS OF OUR GROWING POPULATION. 
          THE RESULT IS SKYROCKETING RENTS AND HOUSING COSTS ULTIMATELY, UH, BECOME, UH, BECAUSE OF AN IN INSUFFICIENT HOUSING SUPPLY. 
          OVER THE LAST YEAR, THE AVERAGE RENT IN TEXAS HAS INCREASED BY 22%, WHILE THE REST OF THE COUNTRY EXPERIENCED A 15% INCREASE. 
          ACCORDING TO A REDFIN ANALYSIS, THE HIGHEST INCREASES IN THE STATE ARE HAPPENING IN AUSTIN, WHERE THE AVERAGE RENTS INCREASED BY 46% IN JUST THE LAST YEAR. 
          ALMOST HALF OF WHAT THEY WERE PAYING BEFORE IS NOW ADDED TO THEIR CURRENT RENTS. 
          AS THESE FAMILIES GRAPPLE WITH THE INFLATIONARY COSTS OF ALL GOODS AND SERVICES, INCREASING HOUSING REPRESENTS THE LION'S SHARE OF WHAT THOSE COSTS ARE. 
          HOUSING COST BURDEN IS DEFINED MUCH LIKE MR. WILKINS HAD MENTIONED, UH, BY THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, MEANING IT'S A FAMILY WHO SPENDS, UH, THE, THE EXPECTATION IS IF YOU'RE SPENDING MORE THAN 30% OF YOUR INCOME ON HOUSING AND UTILITY COSTS, YOU'RE CONSIDERED HOUSING COST BURDEN. 
          BUT WHAT WE'RE SEEING A LOT OF IN TEXAS IS DESCRIBED MORE ACCURATELY AS EXTREMELY COST BURDEN. 
          BASICALLY, MEANING FAMILIES ARE SPENDING UPWARDS OF 50% OR MORE OF THEIR INCOME ON HOUSING COSTS. 
          EVEN RENTERS WHO ARE IN HIGHER INCOMES AND WOULD OTHERWISE BE MOVING INTO HOME OWNERSHIP ARE HAVING A HARD TIME IN THE HOUSTON METRO AREA. 
          THE 2022 MEDIAN HOME PRICES IS OVER $282,000, WHICH IS MORE AFFORDABLE THAN OTHER PARTS OF THE STATE. 
          ACCORDING TO A NATIONAL DATABASE DEVELOPED BY THE CENTER FOR HOUSING POLICY, THE ANNUAL INCOME NEEDED TO AFFORD A MEDIAN HOUSE PRICED HOME IN, IN THIS METRO AREA IS ABOUT $80,000 PER YEAR. 
          THE PROBLEM IS THAT ENTRY LEVEL PROFESSIONALS SUCH AS TEACHERS, POLICE OFFICERS AND NURSES, THEY ALL EARN ABOUT 15 TO $25,000 LESS THAN THEY NEED TO MAKE THAT HAPPEN. 
          AND OTHER WORKERS, LIKE RETAIL CLERKS OR CUSTODIANS OR YOUR STARBUCKS BARISTAS, EARN OVER $55,000 LESS THAN THEY NEED TO BE ABLE TO PURCHASE A MEDIAN PRICED HOME IN THE AREA. 
          THIS IS EVEN MORE PRONOUNCED ACROSS TEXAS, WHERE THE MEDIAN SALE OF A HOME ROSE BY OVER 19% FROM 328,000 IN MAY OF 21 TO JUST UNDER 400,000 IN MAY OF 22. 
          SO THE DREAM OF HOME OWNERSHIP IS MUCH HARDER TO REACH, WHICH MEANS THAT THERE'S GONNA BE MORE NEED FOR RENTING, AND IT IS OUR RESPONSIBILITY TO TRY TO MEET THIS NEED FOR THEM. 
          AND FOR THE TEXAS ECONOMY, LOWER INCOME FAMILIES ARE LEFT WITH FEW OPTIONS FOR DEALING WITH THESE EXTREME COST INCREASES, WHETHER THEY RENT OR THEY OWN THEIR HOMES. 
          THE MOST COMMON RESPONSE HAS BEEN THAT THESE FAMILIES SIMPLY MOVE FURTHER AWAY FROM JOB CENTERS TO LOCATIONS WHERE THEY CAN AFFORD TO BETTER MANAGE THESE COSTS. 
          OF COURSE, THIS COMPOUNDS OTHER ISSUES LIKE LONGER COMMUTES AND HIGHER TRAFFIC CONGESTION. 
          ULTIMATELY, WE SEE THIS AS A HOUSING SUPPLY ISSUE. 
          SIMPLY PUT, IF THERE WERE MORE HOUSING OPTIONS AND AVAILABILITY, WE WOULD EVENTUALLY SEE PRICING MODERATE. 
          RIGHT NOW, WE'RE IN THE WORST POSSIBLE SITUATION WHERE NOT ONLY IS THERE AN INSUFFICIENT SUPPLY, BUT THE COST FOR PROVIDING MORE ARE AN UNPRECEDENTED TERRITORY BECAUSE OF SU SUPPLY CHAIN ISSUES, INFLATION, AND NOW INCREASING INTEREST RATES AS HOUSING COSTS CONTINUE TO INCREASE AS THE PERCENTAGE OF FAMILY BUDGETS, OTHER NECESSITIES LIKE HEALTHCARE, CHILDCARE, TRANSPORTATION, AND O AND EDUCATION BECOMES SECONDARY PRIORITIES. 
          AFFORDABLE HOUSING IS AT THE NEXUS OF ECONOMIC DEVELOPMENT, WORKFORCE DEVELOPMENT AND EDUCATIONAL ACHIEVEMENT WITHOUT A SUFFICIENT SUPPLY OF IT. 
          EACH OF THESE CRITICAL FACTORS TO ECONOMIC, UH, HAS AN IMPACT ON OUR ECONOMIC STRENGTH IN TEXAS. 
          THERE IS NO QUESTION THAT SAFE, AFFORDABLE, QUALITY HOUSING STABILIZES FAMILIES, BUT EVEN WHEN THE ECONOMY IS STRONG, MANY FAMILIES ARE LEFT BEHIND IN SEARCH OF AFFORDABILITY. 
          BECAUSE OF RISING HOUSING COSTS, THE NEED REMAINS UNMET. 
          UNMET, AND THIS ULTIMATELY LIMITS OUR STATE'S ECONOMIC STRENGTH, WHICH BRINGS US TO THIS COMMITTEE'S INTERIM CHARGE. 
          HOW DO WE DEAL WITH THIS HOUSING CRISIS, WHICH IS REALLY KIND OF AN ECONOMIC CRISIS? THERE ARE DEFINITELY ACTIONS TO 
          [00:55:01]
CONSIDER THAT COULD WORK TO ALLEVIATE WHAT WE'RE EXPERIENCING IN TEXAS IN GENERAL. 
          SOLUTIONS INCLUDE RETAINING AND EXPANDING THE AFFORDABLE HOUSING FUNDING TOOLBOX WITH CONCEPTS THAT HAVE BEEN PROVEN IN OTHER STATES, LIKE A STATE OF TEXAS TAX CREDIT PROGRAM TO OVERLAY THE CURRENT FEDERAL TAX CREDIT PROGRAM. 
          WHILE TAP IS CONCERNED WITH ISSUES THAT AFFECT AVAILABILITY OF ALL HOUSING, THE FEDERAL TAX PROGRAM HAS BEEN SUCCESSFULLY ADMINISTERED AND IS A PRIMARY TOOL BY THE STATE OF TEXAS, AND HAS BEEN FOR OVER 30 YEARS. 
          AT T-D-H-C-A, IT, IT SERVES AT AN INCENTIVE PROGRAM FOR PRIVATE AFFORDABLE HOUSING DEVELOPMENT. 
          IT MUST MEET EXTREMELY RIGOROUS STANDARDS AND MONITORING REQUIREMENTS FOR 15 TO 30 YEARS, AS WAS JUST DISCUSSED A FEW MINUTES AGO. 
          SO SOME KEY THINGS TO NOTE ABOUT TAX CREDITS. 
          FIRST HOUSING DEVELOPED UNDER THIS, UNDER THIS PROGRAM IS NOT PUBLIC HOUSING OR GOVERNMENT OWNED RESIDENTS MAY RECEIVE RENTAL ASSISTANCE, BUT THESE ARE GENERALLY PRIVATELY OWNED PROPERTIES. 
          TAX CREDIT DEVELOPMENTS PAY PROPERTY TAXES AND CONTRIBUTE TO THE STATE AND LOCAL ECONOMIES. 
          IN TEXAS, OVER $12 BILLION HAS BEEN PAID TO LOCAL ECONOMIES, ECONOMIES SINCE 1986. 
          ONE OF THE REASONS THEY'RE VERY SUCCESSFUL IS THAT INVESTORS IN THESE DEVELOPMENTS, JUST LIKE INVESTORS IN ANY BUSINESS, ARE STRONGLY INTERESTED IN WELL RUN INVESTMENTS, AND THEY HAVE TO BE REMAIN COMPLIANT. 
          TAP MEMBERS WANT THE TEXAS ECONOMY TO THRIVE, EVEN WITH A LACKING SUPPLY OF AFFORDABLE HOUSING. 
          THE ECONOMIC IMPACT OF TAX CREDITS IN TEXAS IS IMMENSE. 
          IN MORE THAN 30 YEARS OF THE PROGRAM'S EXISTENCE, NEARLY 300,000 HOMES HAVE BEEN PRESERVED OR BUILT IN TEXAS, SERVING OVER 700,000 FAMILIES. 
          NOW, THE BENEFITS OF WORKFORCE HOUSING IS THIS, IT ALLOWS WORKERS TO LIVE AND WORK IN THE SAME COMMUNITY, GIVES THEM THE OPPORTUNITY TO CHOOSE, ALLOWS CRITICAL COMMUNITY WORKERS AND EMERGENCY RESPONDERS TO LIVE CLOSER TO WHERE THEY SERVE. 
          IT HELPS ALLEVIATE CURRENT TRANSPORTATION ISSUES AND ADDRESSES THE AFFORDABILITY ISSUE AS A WHOLE. 
          FURTHER, THERE'S A NUMBER OF REGULATORY THINGS AND, AND STREAMLINING SOLUTIONS THAT COULD ALLEVIATE COSTS, UH, THAT WOULD HELP MORE OF THIS AFFORDABLE HOUSING GET DEVELOPED. 
          UH, NEXT I'LL SUGGEST THAT OUR PRESIDENT ELECT JEAN LATSHAW, UH, WILL OFFER SOME OF THESE IN JUST A LITTLE BIT MORE DETAIL, AND WE'RE HAPPY TO PROVIDE YOU THIS COMMITTEE ANY MORE INFORMATION WE CAN ABOUT THE PROGRAM AND ANY OTHER PROGRAM FOR AFFORDABILITY TO CONSIDER. 
          AS YOU ARE RESEARCHING AND REPORTING. 
          WE LOOK FORWARD TO SERVING AS A RESOURCE TO YOU, MR. CHAIRMAN AND COMMITTEE MEMBERS. 
          THANK YOU FOR THE TIME. 
          THANK YOU AGAIN. 
          ALWAYS GOOD TO SEE YOU, ROGER. 
          THANK YOU FOR YOUR TESTIMONY MEMBERS ANY QUESTIONS FOR ROGER? OKAY, WE'LL GO AHEAD AND HEAR FROM JEAN. 
          WELCOME, MA'AM, IF YOU COULD PLEASE STATE YOUR NAME AND WHO YOU REPRESENT. 
          YES. 
          AND GIVE ANY TESTIMONY. 
          UM, I, I'M JEAN LATSHAW AND I'M HERE, UH, REPRESENTING THE TEXAS AFFILIATION OF AFFORDABLE HOUSING PROVIDERS TAP. 
          UM, I WILL SAY I'M BORN AND RAISED IN HOUSTON, AND ALTHOUGH I LIVE IN AUSTIN NOW, I STILL CONSIDER MYSELF A HOUSTONIAN. 
          UM, AND ALSO, UH, DID SOME TIME AT, UH, T-D-H-C-A. 
          AND SO REALLY APPRECIATE ALL THE WORK THAT BOBBY AND HIS STAFF DO. 
          THOSE ARE, THOSE ARE SOME SUPER HARDWORKING FOLKS OVER THERE. 
          UM, IT'S ONE OF THE BEST JOBS I EVER HAD, BUT NOW I'M IN THIS ONE. 
          UM, I ALSO AM, UH, A DEVELOPER ON THE PRIVATE SIDE. 
          UM, I WORK FOR A LARGE NATIONAL DEVELOPMENT COMPANY, UM, AND WE PRIMARILY, UH, DO 4%, UH, TAX CREDIT DEALS. 
          WE'VE DONE A, A COUPLE OF 9% DEALS TOO. 
          SO, UM, I, I WOULD SAY I KNOW A LOT ABOUT THOSE PROGRAMS. UM, AND SO HAPPY TO TAKE QUESTIONS ABOUT THOSE TOO. 
          I, I WANNA START THOUGH, JUST WITH THE STORY ABOUT, I DON'T, I DON'T WANNA REPEAT ALL OF THE STATISTICS AND THINGS THAT YOU'VE HEARD, UM, HERE TODAY. 
          I THINK WE PROBABLY ALL UNDERSTAND THAT THERE'S A HUGE DEMAND FOR THIS KIND OF HOUSING. 
          UM, ALL THE WAY FROM 30% A MI TO 80% A MI, UM, IS REALLY WHAT WE'RE TALKING ABOUT HERE. 
          YOU KNOW, THOSE ARE DIFFERENT KINDS OF FAMILIES, BUT, SO WE HAD A DEVELOPMENT IN AUSTIN. 
          UM, ONE OF OUR RESIDENTS WAS A MANAGER AT A TORCHY'S TACOS. 
          RIGHT. 
          UM, AND WAS CLEARLY MAKING A LOW ENOUGH INCOME, EVEN THOUGH THAT'S A PRETTY GOOD GIG. 
          UM, A LOW ENOUGH INCOME TO, UH, BE A RESIDENT OF ONE OF OUR DEVELOPMENTS. 
          UM, OUR PROPERTY MANAGERS CHATTING WITH HIM AS HE PAID HIS RENT, AND WE WOUND UP HIRING HIM, AND THEN WE PROMOTED HIM A FEW MORE TIMES. 
          AND NOW HE IS, UH, A REGIONAL MANAGER IN FRONT AND IN CHARGE OF ALMOST A THOUSAND UNITS, AND QUITE FRANKLY, MAKES TOO MUCH MONEY TO LIVE IN OUR DEVELOPMENTS ANYMORE. 
          HE JUST BOUGHT AN ACRE OF LAND WITH HIS NEW WIFE AND IS GONNA BUILD A HOUSE. 
          AND THESE ARE COMMON STORIES ABOUT HOW FOLKS LIVE IN THESE DEVELOPMENTS. 
          THEY'RE ABLE TO SAVE A LITTLE BIT OF MONEY AND THEY'RE ABLE TO MOVE ON. 
          UM, AND IT IS TRUE, TO ANSWER YOUR QUESTION ABOUT COST, THESE ARE VERY COSTLY RIGHT NOW. 
          UM, RIGHT NOW, UM, I'M UNDERWRITING AT ABOUT $135 A FOOT. 
          SOME OF MY COLLEAGUES MIGHT SAY THAT'S TOO LOW. 
          UM, I CAN TELL YOU THAT IN THE LAST SIX TO NINE MONTHS, WE'VE, WE'VE SEEN, UM, COST INCREASES AROUND 30%. 
          UM, THAT'S, YOU KNOW, OUR, OUR UNDERWRITING, LIKE I SAID, SOME OF MY, UM, MY FRIENDLY COMPETITORS MIGHT GIVE YOU A SLIGHTLY DIFFERENT NUMBER RIGHT NOW, THOUGH. 
          YES, IT'S COSTING ABOUT $275,000 A UNIT 
          [01:00:01]
TO PUT ONE OF THOSE, UH, THOSE ON THE GROUND. 
          BUT ONE THING THAT SOUNDS LIKE A HIGH NUMBER, BUT THIS IS THE THING THAT UNIT WILL SERVE, NOT JUST ONE HOUSEHOLD. 
          THAT UNIT WILL BE AFFORDABLE FOR 30 TO 45 YEARS, DEPENDING ON THE PROGRAM. 
          SO THAT UNIT'S GONNA SERVE HOW MANY HOUSEHOLDS? 30, YOU KNOW, 30 HOUSEHOLDS OVER THOSE YEARS. 
          RIGHT. 
          ESPECIALLY IF YOU HAVE STORIES LIKE OUR PROPERTY MANAGER WHERE HE LIVES THERE FOR A LITTLE WHILE, HE SAVES A LITTLE MONEY, AND THEN HE MOVES ON TO BUY A HOME. 
          UM, AND THOSE ARE THE THINGS THAT I, I'D LIKE YOU TO, TO REMEMBER OUR MESSAGE, UM, FROM TAP REALLY IS THIS, WE DO WANNA USE THE TOOLS THAT EXIST TODAY TO ADDRESS THIS PROBLEM OF A LACK OF AFFORDABILITY IN TEXAS AND, AND FOR THE WORKFORCE PARTICULARLY. 
          UM, AND UNFORTUNATELY THOUGH THERE ARE STATUTES IN PLACE THAT MAKE, UM, IT REALLY DIFFICULT AND COSTLY TO DO THAT. 
          UM, THE TAX CREDIT PROGRAM IS HIGHLY LEGISLATED IN TEXAS, MORE SO THAN IN ANY OTHER STATE. 
          SOME OF THAT, YOU KNOW, WE CAN BE PROUD OF , SOME OF IT'S JUST DOWNRIGHT UNUSUAL. 
          UM, UH, IT INCLUDES PROVISIONS, FOR INSTANCE, THAT PREVENT AFFORDABLE HOUSING FROM BEING BUILT IN CERTAIN CENSUS TRACKS. 
          UM, AND TO YOUR POINT, SIR, THAT COULD, THAT COULD RESULT IN PUTTING THESE, THESE DEVELOPMENTS IN PLACES WITH A LACK OF PROXIMITY TO JOBS OR A LACK OF SERVICES, BECAUSE THE RULES OF THE PROGRAM ITSELF DICTATE THAT I GO OVER HERE WHERE THERE'S NOTHING ELSE GOING ON, OR WHERE THAT LAND IS CHEAP. 
          UM, AND, AND WE'D LIKE, WE'D LIKE TO SEE SOME CHANGES TO THOSE THAT MAKE THIS A LITTLE BIT MORE FLEXIBLE SO THAT WE AS REAL ESTATE DEVELOPERS CAN MAKE REALLY GOOD SOUND BUSINESS DECISIONS ABOUT PUTTING THESE DEVELOPMENTS IN PLACES WHERE THEY REALLY GONNA, THEY'RE GONNA SERVE OUR RESIDENTS. 
          UM, WE, YOU KNOW, WE REPRESENT NONPROFIT AND FOR-PROFIT DEVELOPERS, RIGHT? BUT WHEN WE OPERATE THESE DEALS, AND WE DON'T FLIP THEM WHEN WE'RE TALKING ABOUT THE TAX CREDIT PROGRAM, WE OWN THEM FOR A MINIMUM OF 15 YEARS. 
          A LOT OF DEVELOPERS LIKE OURS, MYSELF, UH, WE OWN FOR 30 YEARS OR MORE. 
          UM, AND, AND JUST DON'T SELL THEM. 
          WE CANNOT STAY IN BUSINESS IF WE DON'T HAVE GOOD RESIDENTS AND GOOD LOCATIONS AND, AND COLLECTING RENT AND PAYING OUR OWN MORTGAGES. 
          AND SO WE WANT TO PUT THESE DEVELOPMENTS IN PLACES WHERE IT MAKES SENSE. 
          AND SOME OF THE STATUTES THAT EXIST TODAY MAKE THAT VERY, VERY DIFFICULT. 
          UM, THERE WERE SOME OTHER QUESTIONS THAT YOU HAD ASKED THAT I WANTED TO, TO ANSWER, UM, BUT I'M NOT SURE WHAT IT WAS. 
          I THINK, I THINK THAT WAS ABOUT IT. 
          UM, I WILL SAY TOO, I HAVE, UM, TO ANSWER YOUR QUESTIONS ABOUT THE PFCS. 
          UM, I DON'T HAVE PERSONAL EXPERIENCE WITH A PFC DEVELOPMENT. 
          WE HAVEN'T DONE THAT AS A COMPANY. 
          UM, BUT THERE ARE TWO DIFFERENT SIDES OF THAT. 
          THE PFCS DO ACT AS ISSUERS ON, UM, A 4% TAX CREDIT, UH, PAIRED WITH TAXES AND BOND DEALS, RIGHT? AND IN THAT CAPACITY, THEY HAVE ALL OF THE SAME, UM, THE SAME COMPLIANCE MEASURES AND EVERYTHING THAT MR. WILKINSON MENTIONED AS NHFC OR, OR ANY OTHER, OR EVEN T-D-H-C-A WHEN THEY ISSUE BONDS PAIRED WITH TAX CREDITS. 
          UM, SO THEY'RE TREATED THE SAME WAY. 
          UM, THEY CAN ENTER INTO OTHER TYPES OF DEALS THAT DON'T HAVE TAX CREDITS ATTACHED TO THEM. 
          AND THAT MIGHT BE THE DIFFERENCE THAT WE WERE TALKING ABOUT THERE. 
          BUT I'M HAPPY TO ANSWER ANY QUESTIONS. 
          THANK YOU SO MUCH, MA'AM, FOR BEING HERE TODAY. 
          MEMBERS, DID WE HAVE ANY QUESTIONS? REPRESENTATIVE JOHNSON? THANK YOU. 
          THANK YOU. 
          UM, IN RESPECT TO YOUR, TO THE DEVELOPMENTS, UM, WHAT ARE SOME OF THE FACTORS THAT THAT LEAD TO, UM, THE COST, THE RISING COST OF IN RENT? YOU, YOU GOT YOUR NOTE BUILT IT, SO NOW YOU'RE HERE. 
          WHAT, WHAT, WHAT ARE SOME OF THE, THE FACTORS THAT WOULD MAKE YOU RAISE THE RENT? OH, WELL, UM, IN THE TAX CREDIT DEVELOPMENT, I AM, UH, WE ARE, WE ARE A RENT RESTRICTED AND IT IS BASED ON DATA FROM HUD MM-HMM . 
          SO, UM, WOULD WE RAISE OUR RENT EACH YEAR WHEN THOSE AMIS DO INCREASE? A LOT OF THE TIMES WE DO. 
          I CAN TELL YOU THAT IN A LOT OF OUR DEVELOPMENTS, UM, WE DON'T EVEN CHARGE, UH, THE MAXIMUM ALLOWABLE RENT, UM, BECAUSE WE CAN QUITE FRANKLY, AFFORD NOT TO IN, IN SOME OF THEM. 
          UM, AND WE WOULD RATHER HAVE THOSE UNITS FULL, UM, THAN BE CHARGING A MAXIMUM RENT AND MAYBE NOT HAVE THOSE, THOSE UNITS FULL. 
          UM, BUT WE, OUR RENTS INCREASE AS HUD ALLOWS THEM TO INCREASE, OR REALLY HUD IN A COMBINATION WITH TD HD'S COMPLIANCE. 
          SO AS, SO WHEN YOU TALK ABOUT THE A MI INCREASING FOR THE AREA, UM, WHAT I'M, MY QUESTION IS, DOES THAT HAVE SOMETHING TO DO WITH THE RISING COST TO MAINTAIN YOUR PROPERTY? UM, TYPICALLY, 
          [01:05:01]
UM, I MEAN, I THINK WE'VE ALL SEEN THIS, RIGHT? AS, AS INCOMES INCREASE, EXPENSES TEND TO INCREASE TOO. 
          SO YES, I HAVE INCREASED IN EXPENSES ON THIS SIDE, AND THEN I HAVE AN INCREASED A MI ON THE OTHER SIDE, WHICH ALLOWS ME TO INCREASE MY RENT. 
          SO THEY BOTH KIND OF RAISE AT THE SAME TIME. 
          WHAT, SAY THAT AGAIN. 
          SO I'LL HAVE INCREASED IN EXPENSES, MY OWN OPERATING EXPENSES OF THE DEVELOPMENT ON THIS SIDE, RIGHT? AND THEN ON THE OTHER SIDE, WE HAVE AN INCREASE OF INCOME, UM, WHICH SUBSEQUENTLY ALLOWS ME TO INCREASE MY RENT, BUT MY EXPENSES AND MY RENTS ARE BOTH RISING AT THE SAME TIME. 
          BUT IF YOU'RE, SO YOU'RE, BUT THE A MI IS THE AREA, CORRECT? IT'S, UH, SO THEY'RE RATHER LARGE, RIGHT? SO THE HOUSTON, WHAT, WHAT WE BASE OUR RENTS ON, UM, AND THE HOUSTON MSA WOULD, UM, INCLUDE A LOT OF THE SUBURBS, LIKE MISSOURI CITY OR, OR KINGWOOD OR, UH, WHEREVER OR SPRING, YOU KNOW, UM, SO, BUT IT IS A CENSUS TRACK FOR THAT. 
          A MI FOR NO, NO. 
          SO IT'S FOR A MUCH LARGER, UH, LARGER AREA. 
          SO IF WE'RE LOOKING AT SOMETHING LIKE A SENIOR CITIZEN COMPLEX YES, SIR. 
          AND THEIR RENT, THEY'RE, THEY'RE ON FIXED INCOME, THEY'RE RETIRED, WHATEVER THE CASE MAY BE. 
          SOME STILL MAY BE WORKING, BUT OTHERS ARE, ARE RETIRED. 
          SO WHILE THEIR INCOME IS NOT GOING UP, THE A MI FOR THAT, FOR THAT COMMUNITY HAS GONE UP. 
          SO THEREFORE YOU GUYS ARE ABLE TO RAISE THE RENT. 
          SO HOW DO YOU ADDRESS THE SITUATION THAT MAY ARISE WHEN YOU PRICE SENIORS OUT OF HOMES? SIMPLY BECAUSE THE A MI WENT UP THE, THE, THE COST OF DUE BUSINESS IN THE APARTMENT OR THE DEVELOPMENT DIDN'T GO UP, BUT THE RENT WENT UP AND, AND, BUT THE SENIOR DIDN'T GET THEIR COST OF LIVING INCREASE. 
          THEY, THEY DIDN'T GET A BUMP IN, IN, IN, IN ANY OF THEIR INCOMES, BUT YET THE RENT HAS GONE UP UNTIL NOW THEY'RE BEING DISPLACED. 
          SO HOW, HOW DO YOU SEE, AND I, AND I KNOW THAT'S A HARD QUESTION. 
          IT'S PROBABLY A QUESTION I NEED TO A ASK THE, THE DIRECTOR, BUT HOW DO YOU GUYS HANDLE THAT? BECAUSE YOUR, YOUR EVICTIONS ARE GONNA START GOING UP BECAUSE YOU HAVE SO MANY SENIORS THAT CAN'T AFFORD THIS INCREASE IN RENT, BECAUSE OFTENTIMES THEY'RE, THEY'RE ALREADY KINDA RIGHT THERE. 
          AND IF EVERY YEAR, YOU KNOW, THE, THE RENT CAN GO UP, HOW DO YOU ADDRESS THAT? UM, WELL, AND, AND LIKE I SAID EARLIER, UM, WE DON'T NECESSARILY CHARGE THE MAXIMUM ALLOWABLE RENTS IN ALL OF OUR DEVELOPMENTS. 
          SOME OF THEM WE DO. 
          UM, BECAUSE THERE MIGHT BE A LONG LIST OF FOLKS, YOU KNOW, BEHIND THAT, THAT CAN PAY THAT MAXIMUM ALLOWABLE RENT. 
          I MEAN, I HAVE TO ADMIT THAT IS A BUSINESS DECISION, RIGHT? IF I'M NOT SEEING A, A HUGE INCREASE IN EXPENSES OVER HERE, AND I DON'T SEE A NEED TO NECESSARILY RAISE RENTS TO COUNTER THE, THAT EXPENSE INCREASE, THEN AS AN OPERATOR OWNER, I CAN MAKE A DECISION TO JUST NOT, NOT INCREASE THAT RENT AS LOUD AS MUCH AS I'M ALLOWED TO. 
          UM, AT THE SAME TIME, LIKE I SAID, WE, WE WOULD LIKE TO STAY IN BUSINESS, RIGHT? WE DO HAVE DEBT TO PAY EVERYTHING ELSE. 
          SO IT'S DEFINITELY A BALANCING ACT. 
          UM, BUT IS THERE, UM, IS THERE SOMETHING THAT PREVENTS ME FROM JUST CHARGING MAXIMUM ALLOWABLE RENTS ACROSS THE BOARD AND NOT REALLY CARING IF THAT MEANS IF SOME, I'M GONNA LOSE SOME OF MY RESIDENTS? I MEAN, THE SHORT ANSWER IS NO. 
          THERE'S, THERE'S NOT A, THERE'S NOT A REGULATION OR A LAW THAT, THAT, UM, THAT PREVENTS THAT FROM HAPPENING. 
          YEAH. 
          I MEAN, JUST TRYING TO FIGURE OUT HOW DO WE BALANCE IT? BECAUSE WE HAVE TO LOOK AT, 'CAUSE IT'S NOT ABOUT THE MAXIMUM ALLOWABLE THAT YOU CAN DO. 
          IT'S, IT'S WHAT I WALKED IN AT. 
          IF I WALKED IN AND I'M PAYING, YOU KNOW, A THOUSAND DOLLARS IN RENT AND THEN THE NEXT YEAR IT GOES UP A LITTLE BIT AND GOES UP A LITTLE, I'M ALREADY AT MY, YOU KNOW, LET'S JUST SAY I'M AT MY 27% OF YEAR AND IF I'M LIVING THERE MORE THAN FIVE YEARS, THEN I'M BEYOND MY 30%. 
          NOW I'M, YOU KNOW, AND SO, SO THAT'S WHAT I'M SAYING. 
          AND I'M, I DON'T WANNA STOP YOU FROM DOING BUSINESS. 
          I DON'T WANNA STOP ANYBODY FROM DOING BUSINESS. 
          AND AGAIN, I THINK THAT'S MORE OF A QUESTION THAT I NEED TO BE ADDRESSING TO WILKINSON. 
          'CAUSE WE HAVE TO LOOK AT HOW DO WE DO THAT BALANCE? 'CAUSE THERE ARE TOO MANY CITIZENS THAT WE'RE BEING, THEY'RE GETTING IN. 
          UM, BUT UNFORTUNATELY THEY'RE BEING KICKED OUT 'CAUSE THEY DON'T HAVE THE RENT. 
          AND UNFORTUNATELY THERE WAS NO MORE SERVICES OFFERED. 
          UM, YOUR, YOU KNOW, YOUR INTEREST RATE DIDN'T GO UP. 
          UM, CERTAINLY SOME COST MAY HAVE GONE UP. 
          THE COST TO CUT GRASS MAY HAVE GONE UP AND THE COST OF ELECTRICITY AND THOSE OTHER THINGS MAY HAVE GONE UP. 
          UM, BUT YET STILL THIS, THE RESIDENT INCOME DIDN'T GO UP. 
          AND SO WE DON'T WANT TO, IF WE'RE IN AN AFFORDABLE HOUSING BUSINESS, WE HAVE TO MAKE SURE THAT WE DON'T, YOU KNOW, PLACE OR, OR PRICE OUT THE AFFORDABILITY FOR 
          [01:10:01]
THE PEOPLE THAT WE INITIALLY, UM, RENT IT TO. 
          SO I'S JUST TRYING TO FIGURE OUT THAT BALANCE, NOT, NOT TRYING TO STOP YOU FROM MAKING MURDER . 
          OH, NO. 
          AND, AND I AGREE, AND I WOULD SAY THIS TOO, THAT, UM, THE OTHER INTERESTING THING THAT'S HAPPENED WITH THIS PROGRAM IN THE LAST FIVE YEARS OR SO IS THAT, UM, MR. WILKINSON DID MENTION AT THE SWEET SPOT OF THE 60% A MI HOUSEHOLD AND SERVING THAT, BUT THE TAX CREDIT PROGRAM AT THE FEDERAL, THE FEDERAL LEVEL WAS RECENTLY CHANGED TO WHERE WE CAN ACTUALLY REACH UP TO THOSE 80% A MI FOLKS TOO. 
          AND SO WHAT HAPPENS IS WE NOW HAVE THE ABILITY TO HAVE TRULY MIXED INCOME DEVELOPMENTS FINANCED WITH 4% TAX CREDITS SERVING ALL THE WAY FROM 30% A MI UP TO 80% A MI. 
          SO IN THAT CASE WHERE ALL OF MY UNITS AREN'T NECESSARILY AT THE SAME LEVEL, PERHAPS THAT SENIOR, UM, QUALIFIES THEN FOR A 50% A MI UNIT AND CAN STAY, AND THEN I CAN BRING IN ANOTHER 60% A MI UNIT AND HAVE A MORE MIXED INCOME DEAL. 
          UM, THERE ARE SOME, SOME STATE, UH, STATE LAWS THAT HAVEN'T QUITE MARRIED UP WITH, UM, THAT NEW FEDERAL LEGISLATION THAT WE'D ALSO LIKE TO SEE IT JUST ADJUSTED SO THAT WE CAN ACTUALLY IMPLEMENT THAT, THAT PROGRAM AND STILL, UM, BUILD THESE DEVELOPMENTS, UM, IN COMPLIANCE WITH OUR STATE LAWS TOO. 
          SO THANK YOU, SIR. 
          THANK YOU, REPRESENTATIVE. 
          ANY OTHER QUESTIONS, NUMBERS? I HAVE A COUPLE OF QUESTIONS. 
          I'M GOOD. 
          UM, YOU SAID THE BUILDING COSTS AROUND $275,000 A UNIT IS YOUR TYPICAL COST? THAT WAS MY, I'M SORRY. 
          THAT'S AN ALL IN DEVELOPMENT COST. 
          THAT'S WITH LAND DEVELOPER FEE FINANCING COSTS, STICKS AND BRICKS. 
          SO MY STICKS AND BRICKS IS ABOUT $135, UH, A FOOT RIGHT NOW. 
          $120,000 A UNIT. 
          THOSE ARE PRETTY ROUND FIGURES. 
          A HOW MUCH FOR THE LAND? UH, WELL THAT VARIES, RIGHT? UM, I MEAN, ON, ON THAT PARTICULAR DEAL, I THINK WE WERE PAYING ABOUT $5 A FOOT, WHICH IS PRETTY CHEAP. 
          OKAY. 
          YOU SAID 275,000 PER UNIT, ALL, ALL IN. 
          AND YOU SAY FINANCING COSTS? WHAT, WHAT DO YOU MEAN FINANCING COSTS? WHAT? UM, CONSTRUCTION IN, UM, INTEREST, UH, THE COST OF ISSUANCE OF THE BONDS. 
          UM, ALL ALL SORTS OF, OF FINANCING FEES. 
          OKAY. 
          SO WHAT'S IT COST YOU TO BUILD IT? YOU, YOU'RE SAYING $135 A FOOT? YES. 
          STICKS AND BRICKS. 
          THAT'S WITHOUT, UM, CONTINGENCIES, UH, PROFITS, UM, SITE WORK, THINGS LIKE THAT. 
          THEN I WOULD, I WOULD BE UPWARDS MORE, MORE LIKE $215 A FOOT. 
          OKAY. 
          THERE YOU GO. 
          OKAY. 
          SO $215 A FOOT IS WHAT IT COST YOU THE TYPICALLY BILL. 
          SO HOW, HOW DO YOU, YOU SAID YOU'VE DONE THESE. 
          HOW, HOW DO YOU FINANCE THAT? HOW, HOW DOES IT WORK IN THE PROGRAM THAT YOU'RE IN? SURE. 
          UM, SO WE GO TO AN ISSUER, USUALLY IN OUR CASE, AND I'M JUST SPEAKING FROM THE, THE COMPANY THAT I WORK FOR, UH, WE'LL GO TO A LOCAL HOUSING FINANCE CORPORATION. 
          UM, SOME DEVELOPERS MIGHT GO TO T-D-H-C-A OR, UH, TO SOME OF THOSE PFCS. 
          SO WE'LL GO TO THAT HOUSING FINANCE CORPORATION, UM, AND, AND GET INDUCED FOR, UH, TAX EXEMPT BONDS. 
          THEN THAT ISSUER, UH, APPLIES TO THE TEXAS BOND REVIEW BOARD FOR THOSE TAX EXEMPT BONDS. 
          UM, THEN IF YOU WERE ABLE TO GET A BOND RESERVATION, THAT PROGRAM IS VERY OVERSUBSCRIBED RIGHT NOW AS WELL. 
          UH, THEN YOU APPLY FOR TAX CREDITS FROM THE T-D-H-C-A. 
          SO AT THE END OF THE DAY, UM, THE TAX CREDITS THAT WE WOULD RECEIVE FROM T-D-H-C-A, UH, WE TAKE THOSE OUT TO INVESTORS, LARGE INVESTORS, UM, AND THEY WOULD FINANCE PROBABLY ABOUT 30%, UM, OF THE TOTAL COST OF THE DEVELOPMENT. 
          OKAY. 
          UM, I JUST WANNA CATCH UP WITH YOU. 
          OKAY? SURE. 
          YEAH. 
          , THE TAX CREDITS, THAT'S IS AN INVESTOR, THEY COULD USE THAT AGAINST THEIR FEDERAL INCOME TAX? CORRECT. 
          OKAY. 
          EVEN THOUGH IT'S, IT'S APPROVED BY THE STATE OF TEXAS HOUSING AGENCY. 
          THAT'S RIGHT. 
          OKAY. 
          AND IS THAT TAX CREDIT WHAT THEY, SO IF THEY BUY, SAY A HUNDRED THOUSAND DOLLARS OF TAX CREDIT, THEY WOULD TAKE THAT AN EQUAL AMOUNT OVER 10 YEARS. 
          RIGHT. 
          OKAY. 
          AND THAT'S, IT'S, SO THAT WOULD BE THE A HUNDRED THOUSAND. 
          SO IF THEY, IF YOU GET APPROVAL FOR A MILLION DOLLARS, YOU HAVE ONE PERSON BUY THE MILLION, AND DO YOU SELL THAT AT PAR, THE WHOLE MILLION, OR DO YOU SELL IT AT AROUND 90%? SO WHEN, WHEN YOU SEE T-D-H-C-A, UH, GIVE AN AWARD OF A MILLION DOLLARS OF TAX CREDITS TO A DEVELOPER, THAT'S A MILLION DOLLARS FOR 10 YEARS. 
          SO IT'S REALLY $10 MILLION. 
          AND SO I TAKE THAT TAX CREDIT AWARD TO AN INVESTOR OR A SYNDICATOR, AND IN TURN THEY GIVE ME EQUITY. 
          SO THEY'RE GETTING $10 MILLION IN, UH, TAX CREDITS OVER THE NEXT 10 YEARS. 
          AND THEY'LL TRADE THAT, LET'S SAY FOR 9 MILLION, 
          [01:15:01]
THEY'LL GIVE ME $9 MILLION FOR THAT TO FIND. 
          SO ABOUT 90%, UH, RIGHT NOW, LET'S CALL IT 95. 
          IT'S VARIED VASTLY OVER THE LAST TWO DECADES. 
          OKAY. 
          SO LET'S SAY IT'S THAT MILLION, THAT'S A MILLION PER YEAR. 
          THAT'S 10 MILLION. 
          OKAY. 
          SO NOW YOU'VE GOT NINE, 9 MILLION, 500,000 TO WORK WITH. 
          OKAY. 
          SO LET'S SAY YOUR PROJECT $30 MILLION. 
          SO HOW DO YOU, HOW DO YOU, NOW, NOW YOU'VE GOT NINE AND A HALF, THAT'S BASICALLY FREE EQUITY, RIGHT? YOU DON'T HAVE TO PAY IT BACK TO ANYONE. 
          IT'S JUST NOW HOW DO YOU DO THE REST? CONVENTIONAL FINANCING, JUST, UH, CONVENTIONAL DEBT. 
          NOW YOU DO HAVE THE TAX EXEMPT BOND ISSUANCE THAT A ALLOWS YOU TO HAVE A SLIGHTLY BETTER RATE ON THAT FINANCING, BUT IT'S, IT'S JUST CALL IT ANY SORT OF CONVENTIONAL DEBT. 
          OKAY. 
          SO IF THE STATE AGENCY DECIDES TO ISSUE BONDS, THEY WILL USE THEIR POWER TO GO OUT INTO THE MARKET AND MAYBE THEY CAN BORROW IT AT THREE OR 4%. 
          RIGHT? AND THEN THAT'S THE RATE THAT YOU WOULD PAY, RIGHT? IS THERE, LIKE, WORKING WITH THE CITY, IS THERE ANY OTHER GRANT MONEY OR IS THAT IT, BASICALLY THE TAX CREDIT AND THEN YOU HAD TO GET CONVENTIONAL FINANCING. 
          THAT'S THE ONLY THING THAT'S, THAT HAS TO HAPPEN, RIGHT? UM, SOME OF THESE DEALS MIGHT HAVE, UH, IT'S DEAL SPECIFIC, RIGHT? UM, YOUR TYPICAL DEAL, HUH? UH, YOUR TYPICAL DEAL. 
          I, MY TYPICAL DEAL, THAT'S IT. 
          OKAY. 
          AND SO, AND THAT'S TYPICALLY IS THAT TAX CREDIT, 30% OF YOUR TOTAL COST SOMEWHERE AROUND THERE MM-HMM . 
          AND SO YOU AS A DEVELOPER, VIRTUALLY ALMOST DON'T HAVE TO PUT UP ANY MONEY BECAUSE YOU'RE JUST TAKING A TAX CREDIT AS YOUR EQUITY, SO YOU'RE INTO IT WITH VERY LITTLE, IF ANY MONEY. 
          UM, I, I WOULDN'T SAY THAT'S TRUE, BECAUSE BY THE TIME WE GET TO CLOSING, WE'VE USUALLY SPENT A SIGNIFICANT AMOUNT OF MONEY, AT LEAST A MILLION DOLLARS. 
          YEAH. 
          YEAH. 
          AND DO YOU TYPICALLY ON THE OVERALL PROJECT GET TO CHARGE A DEVELOPER FEE OF 10 TO 15 20%, USUALLY 15%? YES. 
          15%. 
          SO OF THAT 30 MILLION, YOU WOULD BE ABLE TO CHARGE ABOUT A FOUR AND A HALF MILLION DOLLARS FEE? THAT'S CORRECT. 
          OKAY. 
          AND THEN YOU COULD JUST PUT THAT BACK IN AS YOUR EQUITY. 
          SO YOU STILL ARE ALMOST DAMNING NO HARD DOLLARS. 
          AND USUALLY, USUALLY WE DO. 
          SO TYPICALLY THE WAY THESE ARE UNDERWRITTEN IS, LET'S SAY I AM COLLECTING A $4 MILLION FEE. 
          UM, USUALLY I DO HAVE A GAP OF LET, LET'S SAY I HAVE A GAP OF 3 MILLION, SO $3 MILLION OF THAT, I'LL, I'LL COLLECT A MILLION DOLLARS OF THAT FEE WHEN I CLOSE ON THE TRANSACTION, BUT THEN THE OTHER THREE WILL BE DEFERRED OVER 15 YEARS. 
          OKAY. 
          NOW, FOR ALL THOSE BENEFITS, WHAT IS THE TYPICAL PARAMETERS THAT YOU'RE UNDER? ARE YOU, DO YOU FILE A LUR ON THE PROPERTY? IS IT FOR 30, 40 YEARS? WHAT PERCENTAGE DO YOU HAVE TO DO A CERTAIN PERCENTAGE AT 30% OF A MI WHAT, WHAT IS A TYPICAL SET OF PARAMETERS THAT YOU'RE OPERATING UNDER? SO OUR STARTING POINT, AND NOW I'M, I'M REALLY SPEAKING KIND OF MORE FOR OUR, MY, THE DEVELOPER. 
          I WOULD FOR JUST A TYPICAL DEAL IS A HUNDRED PERCENT AT 60%. 
          NOW, I WILL SAY I HAVEN'T DEVELOPED, YOU SAID A HUNDRED PERCENT, 60%. 
          WHAT? THAT'S MY STARTING POINT. 
          UM, A HUNDRED PERCENT OF THE UNITS AT RENT AND INCOME RESTRICTED AT 60% A MI, OH, A HUNDRED PERCENT OF THE COMPLEX IS RENT RESTRICTED AT 60 EVERY UNIT. 
          SO YOU HAVE NO FREE MARKET UNITS? THAT'S RIGHT. 
          OKAY. 
          THAT'S USUALLY OUR STARTING POINT. 
          HOWEVER, UM, I FOUND RECENTLY, UM, ALMOST EVERY ISSUER OUT THERE, LOCAL HFCS AND THE PFCS HAVE SOME OTHER REQUIREMENT THAT THEY WANNA SEE WHETHER IT IS MARKET RATE UNITS OR 30% A MI UNITS OR 50% A MI UNITS. 
          SO WE'RE AT THE MERCY OF, OF OUR PARTNERS, . 
          OKAY. 
          I HEARD YOU SAY PFCS PUBLIC FACILITY. 
          SO HOW, HOW ARE YOU INVOLVED WITH THE PUBLIC FACILITY CORPORATION? I HAVEN'T, WE HAVEN'T USED ONE YET, BUT WE COULD AND, AND YOU WOULD FINANCE IT THE SAME WAY? MM-HMM . 
          YES, SIR. 
          OKAY. 
          IF YOU FINANCE IT THAT WAY, THEN YOU'RE UNDER THE JURISDICTION OF THE TEXAS AGENCY, AND SO THAT'S HOW YOU'RE BEING MONITORED. 
          YES, SIR. 
          BUT A HUNDRED PERCENT OF YOUR UNITS IS AT 60. 
          THAT'S TYPICAL. 
          60%. 
          SO YOU MAY HAVE SOME LOWER, SOME HIGHER. 
          RIGHT. 
          DO YOU PAY PROPERTY TAXES? UM, ON OUR PORTFOLIO, WE PAY PROPERTY TAXES ON ABOUT HALF OF THEM. 
          UM, MOSTLY IN THE AUSTIN AREA. 
          UH, JUST BECAUSE THE AMIS ARE, ARE PRETTY HIGH. 
          UM, I WILL TELL YOU THAT IN SAN ANTONIO, WHEN I'VE DONE DEALS THERE, WE DO NOT PAY PROPERTY TAXES ON THOSE 'CAUSE IT JUST DOESN'T WORK. 
          AND HOW DO YOU GET WHO, 
          [01:20:01]
WHO APPROVES THAT? YOU DON'T HAVE TO PAY ANY PROPERTY TAXES. 
          UH, SO THAT IS THROUGH THAT LOCAL HFC, UM, IS A PARTNER IN THE TRANSACTION BECAUSE THEY HFC, WHAT DOES THAT STAND FOR? OH, I'M SORRY. 
          HOUSING FINANCE CORPORATION. 
          OKAY. 
          THAT'S SEP IS THAT A DEPARTMENT INSIDE THE TEXAS DEPARTMENT? NO. 
          NO, SIR. 
          UH, I, I'M NOT SURE OF THEIR STATUTE. 
          I WOULD THINK IT'S 3 92, BUT I'M NOT SURE. 
          UM, SO, UH, HOUSING FINANCE CORPORATION, LOCAL HOUSING FINANCE CORPORATIONS EXIST ALL OVER THE STATE OF TEXAS. 
          SOME OF THEM, UM, THEIR BOARDS MIGHT CONSIST OF, UH, THE CITY COUNCIL MEMBERS. 
          UM, SOME ARE APPOINTED BY CITY COUNCIL MEMBERS. 
          THERE'S ALL SORTS OF DIFFERENT WAYS THAT YOU CAN STRUCTURE THEM, BUT TYPICALLY THE CITY DOES HAVE SOME SORT OF OVERSIGHT, UM, UM, OF THAT HOUSING FINANCE CORPORATION. 
          SO YOU PARTNER WITH THE HOUSING FINANCE CORPOR, THE HFC? YES, SIR. 
          DO YOU GIVE THEM THE LAND? THEY OWN THE LAND. 
          RIGHT. 
          AND HAVE A USUALLY ENTER INTO A LONG-TERM LEASE WITH US. 
          THEY ALSO SHARE IN OUR DEVELOPER FEE SO THAT $4 MILLION GETS CUT. 
          UM, AND IT, AND IT'S JUST A BUSINESS TERM. 
          IT'S JUST A DEAL TERM. 
          IT VARIES FROM ONE HFC TO THE OTHER, HOW MUCH THEY MIGHT GET DEVELOP. 
          AND DO YOU SHARE FEE IN CASH FLOW AS WELL IN THE CASH FLOW? YES, SIR. 
          NOW, WHEN YOU SHARE IN THE CASH FLOW WITH THE HFC, YOU'RE GONNA TAKE YOUR INCOME, YOU'RE GONNA MINUS ALL YOUR EXPENSES, YOU'RE GONNA TAKE AWAY YOUR DEBT SERVICE MM-HMM . 
          AND THEN YOU'RE GOING TO ALSO PROVIDE A PREFERRED RATE OF RETURN TO ANY INVESTMENT, ANY CAPITAL THAT SOMEONE'S PROVIDED, DO YOU GET YES, BUT THAT'S, THAT'S, THAT'S A RARE PREFERRED TURN, PREFERRED RETURN? UM, NO, THAT WOULD BE A, A RARE OCCASION. 
          THAT WOULD BE WHAT? RARE. 
          OKAY. 
          A RARE JUST THAT IT'S NOT IN THE LEGAL DOCUMENTS. 
          WELL, I MEAN, I'M, I'M TALKING ABOUT DEALS THAT WE STRUCTURE. 
          I, I HAVEN'T SEEN IT IN OUR DEALS. 
          SOME OF MY COMPETITORS MIGHT, MIGHT HAVE THAT CASE. 
          OKAY. 
          BUT AT THE END OF THE DAY, THERE, IT'S, I GUESS I HAVEN'T SEEN ONE OF YOUR PARTICULAR DEALS, BUT THE WAY I'VE SEEN IT STRUCTURED IS BY THE TIME YOU PUT IN THE PREFERRED RATE TO THE EQUITY THAT'S BEEN PUT IN, THERE'S VERY LITTLE, IF ANYTHING, PAID TO THE HFC IN RETURN FOR YOU NOT HAVING TO PAY ANY PROPERTY TAXES. 
          THAT'S, THAT'S THE TRADE OFF, THAT, THAT IS THE TRADE OFF. 
          YOU ARE ABSOLUTELY CORRECT. 
          AND, AND THAT MONEY THAT THE HFC GETS, ARE THEY BOUND TO GIVE ANY OF THAT TO THE SCHOOL DISTRICT FOR THEM EDUCATING THE KIDS IN THAT COMPLEX OR, OR WHAT? A LITTLE BIT OUT OF MY AREA OF EXPERTISE THERE. 
          YEAH. 
          OKAY. 
          DO YOU GET ANY SALES TAX EXEMPTION DURING THE DEVELOPMENT? UM, SOMETIMES, UH, IF YOU JOINT VENTURE WITH A NONPROFIT, UM, ON THE CONSTRUCTION SIDE, YOU MIGHT GET A SALES TAX ON SOME OF YOUR CONSTRUCTION. 
          BUT THAT'S NOT NECESSARILY, AGAIN, THAT'S DEAL SPECIFIC. 
          THAT'S ONLY IF YOU HAVE A NONPROFIT THAT'S PARTICIPATING WITH YOU. 
          RIGHT. 
          AND, AND YOU'D HAVE TO PARTNER, YOUR GENERAL CONTRACTOR WOULD HAVE TO PARTNER WITH THEM. 
          OKAY. 
          IN THE TAX EXEMPTION, IT LASTS FOR THE ENTIRE TERM OF, OF, OKAY. 
          NOW DOES ANYONE LOOK AT THE TAX CREDIT AND, AND, AND ALL THE TAX BENEFITS, AND THEN DECIDE IF THE SUBSIDY BEING GIVEN TO THE RENT TO THE TENANT? IS THERE A BALANCE IN THERE? YES. 
          WHO, WHO, WHO, WHO ANALYZES THAT? UH, SO TYPICALLY, UM, THE HOUSING FINANCE CORPORATION, THE BOND ISSUER AND THE PARTNER IN THE DEAL WOULD, UH, WOULD DO THAT AN ANALYSIS, WHICH IS WHY IN SOME CASES, UH, YOU MIGHT SEE A SPLIT OF, YOU KNOW, 25% OF THE CASH FLOW GOING TO THE HFC AND 75% TO THE DEVELOPER. 
          AND SOME IT MIGHT BE MORE LIKE, UM, YOU KNOW, NOW, NOW THAT THAT'S ONLY THE CASH FLOW LEFT OVER AFTER ALL THESE DEDUCTIONS. 
          RIGHT. 
          BUT IT, BUT IT'S YOU, WE DO, AND OUR PARTNERS DO CALCULATE THE VALUE OF THAT PROPERTY TAX EXEMPTION OVER THE LIFE OF THE PROPERTY. 
          AND, AND THAT IS HOW WE COME TO OUR, OUR SPLITS OF THOSE DEVELOPER FEES AND CASH FLOWS. 
          RIGHT. 
          OKAY. 
          WELL, THAT, LIKE YOU PROBABLY HAVE AN ONGOING MANAGEMENT FEE. 
          YES, SIR. 
          OKAY. 
          SO THAT COMES OUT A HUNDRED PERCENT FIRST THAT'S UP THERE IN THOSE EXPENSES. 
          IT IS. 
          THAT'S NOT PART OF YOUR CASH FLOW? NO. 
          OKAY. 
          NO. 
          THE, YOU, YOU SAID THAT THE, UM, HC 
          [01:25:03]
THAT SOMEONE WHEN YOU, UH, YOU, YOU SAID SOMEONE ANALYZES THAT TO MAKE SURE THERE'S A GOOD BALANCE, THAT THE BENEFITS TO THE DEVELOPER IS NOT EXCEEDING THE BENEFIT TO THE TENANTS. 
          MM-HMM . 
          IS THAT THE STATE AGENCY THAT DOES THAT? NO, THAT'S JUST BUSINESS TERMS BETWEEN THE HFC AND THE DEVELOPER. 
          REALLY? WELL, WHAT MOTIVATION, THE HFC HAS ZERO INVESTED. 
          SO WHAT MOTIVATION DO THEY HAVE TO MAKE SURE THAT THERE'S A GOOD BALANCE? WELL, IT'S, IT, IT MAKES THEIR SPLIT HIGHER, PROBABLY. 
          I MEAN, IF THERE WAS NO ANALYSIS, I MIGHT COME IN AND SAY, HEY, I'LL GIVE YOU 10% OF THE DEVELOPER FEE AND 10% OF THE CASH FLOW, AND THEY DON'T DO ANY ANALYSIS. 
          THEY MIGHT REALIZE, YOU KNOW, THAT, THAT THE DEVELOPER IS BEING A LITTLE GREEDY, IF YOU WILL. 
          RIGHT. 
          BUT THAT ANALYSIS IS DONE TO DETERMINE, OKAY, LET, LET, LET'S SAY THEY FEEL THAT TO DETERMINE THE DEAL TERMS, WHAT, WHAT, WHAT'S THEIR RECOURSE? I DON'T KNOW THAT THERE IS ONE. 
          IF THEY JUST WANTED TO DO, THEY JUST WANTED TO TAKE A, A LOWER SPLIT JUST BECAUSE I, I, I SUPPOSE THEY COULD, BUT THERE'S NO REAL MOTIVATION BEHIND THAT. 
          OKAY. 
          AND YOU SAY TYP, YOU HAVEN'T SOLD, TYPICALLY YOU DON'T SELL. 
          THERE ARE NO. 
          OKAY. 
          UM, OKAY. 
          THANKS. 
          YOU'RE WELCOME, SIR. 
          THANK YOU. 
          REPRESENTATIVE GATES. 
          REPRESENTATIVE SLAYTON. 
          SO IF TEXAS WAS TO MOVE FORWARD AND HAVE PUBLIC PRIVATE PARTNERSHIPS, YOU KNOW, ENGAGE WITH, WITH BUILDING DIFFERENT COMMUNITIES, WHATEVER THAT LOOKS LIKE, COULD THESE PEOPLE, AND AS WE MENTIONED EARLIER, YOU COULD HAVE A PUBLIC-PRIVATE PARTNERSHIP WHERE IT'S, YOU KNOW, WHAT, 60% OR AROUND THAT THE GOVERNMENT, YOU KNOW, FUNDING THAT, TAXPAYERS FUNDING THAT. 
          COULD THEY ALSO ON TOP OF BEING PUBLICLY, UH, PUBLIC PRIVATE PARTNERSHIP, COULD THEY THEN ALSO BE EXEMPT FROM PAYING ANY LOCAL PROPERTY TAXES? WE, AND JUST FOR YOUR KNOWLEDGE, WE'VE HAD, I HAD TWO, UM, PLANS. 
          SOMEONE, UM, SHOWED TO ME, UM, IT CAME TO A HOUSING AUTHORITY COMMITTEE, AND IT WAS, UM, TWO PLANS TO TWO DIFFERENT COMMUNITIES FOR THESE APARTMENTS TO BE OFF THE TAX ROLLS. 
          AND, UM, IT WAS SUPPOSED TO GO TO THE LOCAL AUTHORITIES, YOU KNOW, CITY AND WHATEVER. 
          FIRST, IT DIDN'T GO TO ANY OF 'EM, AND THEY WERE, IT WAS A, YOU KNOW, UH, THE PLAN WAS TO HAVE THEM OFF THE TAX ROLLS. 
          SO IF WE MOVE FORWARD, DO YOU THINK IF ANYBODY'S DOING A PUBLIC-PRIVATE PARTNERSHIP, THEY SHOULD THEN ALSO BE OFF THE TAX ROLLS? NO, I, I PERSONALLY WOULD NOT SAY THAT AT ALL. 
          LIKE I SAID, IN OUR OWN PORTFOLIO, ALL OF OUR DEVELOPMENTS, OUR PUBLIC-PRIVATE PARTNERSHIPS UTILIZING THE TAX CREDIT PROGRAM, SOME OF THEM WE FA PAY FULL PROPERTY TAXES, BECAUSE FINANCIALLY THE DEAL WORKED THAT WAY. 
          UM, ON THE OTHERS, UM, LIKE I SAID, IT'S, IT'S THROUGH THE PARTNERSHIP WITH THE HOUSING FINANCE CORPORATION THAT AFFORDS US THAT PROPERTY TAX EXEMPTION. 
          IN MY PERSONAL EXPERIENCE, WE'VE NEVER BEEN ABLE TO DO THAT WITH SOME, WITHOUT SOME SORT OF APPROVAL. 
          UM, IT, THERE'S, I MEAN, I, I KNOW THAT THERE'S A NUMBER OF WAYS TO GET A PROPERTY TAX EXEMPTION. 
          YOU KNOW, IF YOU WANNA BUILD A CHURCH, YOU CAN GET ONE. 
          I'M NOT SURE WHAT APPROVALS YOU HAVE TO GO THROUGH TO DO THAT. 
          UM, THERE'S, SO IF THERE'S A WAY TO BUILD HOUSING AND, AND GET A PROPERTY TAX EXEMPTION WITHOUT, WITHOUT SOME SORT OF AUTHORITY, I, I'M NOT REALLY, I'M NOT AWARE OF IT. 
          I, YEAH. 
          THANK YOU. 
          SURE. 
          THANK YOU SO MUCH. 
          AND THANK YOU FOR BEING PATIENT AND ANSWERING ALL THE QUESTIONS. 
          OH, MY PLEASURE. 
          THERE'S A CHAIR THERE IF YOU WANNA SIT DOWN AND NO . 
          THANKS. 
          THANK YOU AGAIN FOR BEING HERE TODAY. 
          SHERIFF CALLS MICHAEL WILT AND DAVID LONG WITH THE TEXAS STORE, TEXAS STATE AFFORDABLE HOUSING CORPORATION. 
          GOOD AFTERNOON. 
          I'VE GOT MY WITNESS CARD AND A FEW HANDOUTS. 
          CAN YOU PLEASE STATE YOUR NAME, WHO YOU REPRESENT FOR THE RECORD, AND YOU MAY BEGIN YOUR TESTIMONY. 
          THANK YOU. 
          I'M MICHAEL WILT ON DECK. 
          EXCUSE ME, I'M SORRY. 
          SURE. 
          NEXT ON DECK AFTER THAT WILL BE THE TEXAS ASSOCIATION OF BUILDERS ED TARA. 
          SO IF YOU WANT TO COME ON UP, ED, AND SIT AT THIS FRONT TABLE, PLEASE BEGIN YOUR TESTIMONY. 
          THANK YOU, CHAIRMAN CORTEZ. 
          UH, GOOD AFTERNOON, UH, TO MEMBERS AS WELL. 
          I'M MICHAEL WILT, SENIOR MANAGER OF EXTERNAL RELATIONS AT THE TEXAS STATE AFFORDABLE HOUSING CORPORATION. 
          I WANNA THANK YOU FOR INVITING US TO BRIEFLY SHARE INFORMATION ABOUT OUR PROGRAMS AND HOW THEY PERTAIN TO THE CHARGE IN FRONT OF YOU. 
          UH, LIKE I, I'LL TRY NOT TO REPEAT WHAT ANY OF THE OTHER SPEAKERS BEFORE ME SAID, AND JUST KEEP IT STRICTLY TO, TO THE PROGRAMS THAT WE DO NOW, I'LL BRIEFLY, BRIEFLY TELL YOU ABOUT US FIRST. 
          UH, WE WERE A STATEWIDE NONPROFIT CREATED IN 1994 AT THE DIRECTION OF THE LEGISLATURE. 
          OUR MISSION IS TO CREATE SAFE, AFFORDABLE HOUSING FOR LOW TO MODERATE INCOME TEXANS 
          [01:30:01]
IN THEIR FAMILIES. 
          WE ACCOMPLISHED THIS, UH, BY THREE PROGRAM AREAS, HELPING DEVELOPERS BUILD AFFORDABLE HOUSING, HELPING PEOPLE BUY A HOME, AND HELPING PEOPLE STAY IN THEIR HOMES. 
          YOU'LL SEE THE PROGRAMS THAT WE ADMINISTER ON SLIDE THREE IN YOUR HANDOUT. 
          IT'S ON PAGE TWO. 
          I'M GONNA GO THROUGH, THROUGH SOME OF THESE, NOT ALL OF THEM. 
          I'M ONLY GONNA SPEAK TO THE ONES THAT DIRECTLY ADDRESS THE CHARGE, WHICH IS TO EVALUATE THE AVAILABILITY OF WORKFORCE HOUSING AND STUDY THE USE OF PUBLIC PRIVATE PARTNERSHIPS AND OTHER INCENTIVES THAT COULD INCENTIVIZE THE DEVELOPMENT OF THAT TYPE OF HOUSING. 
          UH, I'LL START WITH OUR HOME HOME OWNERSHIP PROGRAMS. UNDER THE BUY CATEGORY OF WHAT WE DO, WE, WE RUN TWO HOME BUYER PROGRAMS. UH, THE FIRST IS THE HOMES FOR TEXAS HEROES PROGRAM, AND THAT'S SOMETHING THAT YOU ALL CREATED BACK, BACK IN THE DAY TO SERVE SPECIFIC PROFESSIONS. 
          IT STARTED OUT AS JUST A TEACHER SPECIFIC PROGRAM, AND OVER TIME, YOU ALL HAVE EXPANDED THAT TO INCLUDE FIRST RESPONDERS, SO FIREFIGHTERS, UH, POLICE OFFICERS, EMS. AND THEN THE MOST RECENT CATEGORY ADDED WAS VETERANS ABOUT, UH, THREE SESSIONS AGO. 
          THE OTHER PROGRAM IS NOT, UH, PROFESSION SPECIFIC, IT'S THE HOME SUITE, TEXAS HOME LOAN PROGRAM. 
          WE'RE SERVING, UH, HOUSEHOLDS WITH INCOMES AT OR BELOW 125% OF THAT, UH, IN, IN, IN CERTAIN AREAS. 
          AND THEN IT EVEN GOES UP TO 140% IN TAR IN TARGETED CENSUS TRACKS. 
          WE ACTUALLY INCREASED THE INCOME LIMITS, UH, ON THIS PROGRAM TO RESPON RESPOND TO THE MARKET AS MORE MIDDLE INCOME WORKING CLASS FAMILIES NEED ASSISTANCE DUE TO THE HOUSING MARKET. 
          UH, I WILL SAY THAT THESE PROGRAMS ALMOST EXCLUSIVELY SERVE WORKFORCE HOUSEHOLDS. 
          SO IT DIRECTLY SPEAKS TO, UH, THE, THE TYPE OF HOUSING THAT YOU'RE TRYING TO ADDRESS. 
          WITH THIS CHARGE, WE OFFER DOWN PAYMENT ASSISTANCE IN THE FORM OF A GRANT OR A SECOND YEAR LI SECOND, UH, UH, THREE YEAR FORGIVABLE. 
          SECOND LIEN ASSISTANCE RANGES FROM 2% TO 5% OF THE PURCHASE PRICE IN OUR INTEREST RATES AND OPTIONS CHANGE DAILY TO RESPOND TO THE MARKET AS WELL. 
          WE ALSO OFFER A MORTGAGE CREDIT CERTIFICATE, UH, WHICH MR. WILKINSON SPOKE TO EARLIER THAT ALLOWS YOU TO GET BACK 20% OF THE, THE MORTGAGE INTEREST YOU PAID IN A YEAR AS A TAX CREDIT. 
          UH, THESE PROGRAMS ARE, ARE VERY POPULAR, UH, EVEN DURING THE PANDEMIC AND COMING OUT OF THE PANDEMIC, AS MR. WILKINSON SAID AS WELL IN 2021. 
          SO LAST YEAR WE HELPED 22,726 TEXANS BUY A HOME WITH EITHER THE DOWN PAYMENT ASSISTANCE, MORTGAGE, CREDIT CERTIFICATE, OR BOTH. 
          UH, IN COMPARISON, IN 2020, WE ASSISTED 16,325 HOUSEHOLDS, AND IN 2019, WE ASSISTED 9,397 HOUSEHOLDS. 
          SO YOU'LL SEE THAT OVER THE COURSE OF TWO YEARS, FROM 2019 TO 2021, OUR VOLUME OF HOME BUYERS SERVED MORE THAN DOUBLED. 
          UH, TO DATE, WE'VE SERVED MORE THAN 77,000 TEXANS, UH, THROUGH, THROUGH THESE PROGRAMS TO HELP THEM BUY A HOUSE. 
          MOVING ON TO OUR DEVELOPMENT FINANCE PROGRAMS, UH, I'LL START WITH THE MULTIFAMILY PRIVATE ACTIVITY BOND PROGRAM. 
          YOU ALL ARE WELL VERSED ON THE BOND PROGRAM BY THIS POINT IN, IN, IN THE DAY. 
          THANKS TO THE LINE OF QUESTIONING FROM REPRESENTATIVE GATES. 
          AND, AND PREVIOUS TO THAT, UH, WE ARE A, A, A STATEWIDE ISSUER OF BONDS IN ADDITION TO T-D-H-C-A, WHICH IS ANOTHER STATEWIDE ISSUER. 
          AND THEN THERE ARE OTHER LOCAL ISSUE ISSUERS AS WELL. 
          UH, UH, WE HAVE FOUR HOUSING PRIORITIES UNDER OUR PROGRAM, THE PRESERVATION OF AT-RISK RENTAL HOUSING, RENTAL HOUSING, SERVING SMALL URBAN MARKETS OR RURAL AREAS, SENIOR AND SERVICE AND RICH HOUSING AND DISASTER RELIEF HOUSING. 
          WE TRY TO MEET THE UNDERSERVED AND UNMET NEEDS OF THE STATE. 
          SO OUR PRIORITIES REFLECT THAT IN, IN THOSE FOUR DIFFERENT CATEGORIES. 
          THIS IS PRIMARILY MIXED INCOME WORKFORCE HOUSING WITH COMMITMENTS OF AT LEAST A PORTION OF THE UNITS SERVING HOUSEHOLDS AT OR BELOW 50% OR 60% MEDIAN FAMILY INCOME. 
          WE USE MFI, IT'S AN INTERCHANGEABLE TERM WITH AREA MEDIAN INCOME OR ALMOST AN INTERCHANGEABLE TERM. 
          UH, THIS PROGRAM WAS IMPROVED TWO SESSIONS AGO UNDER THE LEADERSHIP OF CHAIRMAN LUCIO, UH, IN THE SENATE. 
          IT, IT OPERATES A LITTLE BIT MORE EFFICIENTLY NOW, THANKS TO SOME OF THE CHANGES THAT WERE MADE AND MORE FUNDING BECAME AVAILABLE, UH, FOR HOUSING ISSUANCES AFTER THOSE CHANGES WERE MADE AS WELL. 
          THIS IS A HEAVILY SUBSCRIBED PROGRAM. 
          IT IS OVERSUBSCRIBED, AS MS. LAA JUST JUST TOLD YOU AS WELL, WE ISSUED MORE THAN 140, $104 MILLION IN BOND FINANCING IN 2021 TO CREATE OR PRESERVE 1008 UNITS AND 2022. 
          SO FAR, WE'VE ISSUED $115 MILLION TO CREATE A PRESERVE 756 UNITS. 
          WE ACTUALLY STOPPED TAKING RESERVATIONS FOR 2022 BECAUSE OF HOW OVERSUBSCRIBED WE ARE, AND WE ALREADY HAVE APPLICATIONS PENDING FOR 2023. 
          SIMPLY PIT, THERE IS A LOT OF DEMAND AVAILABLE FOR BOND FINANCING STATEWIDE, SO IT MAY, IT SHOULDN'T SURPRISE YOU IF THERE'S INTEREST IN REVISITING THE PRIVATE ACTIVITY BOND PROGRAM IN FUTURE SESSIONS TO SEE IF THERE ARE WAYS FOR MORE PROJECTS TO GET FINANCED. 
          UH, MOVING ON, OUR TEXAS HOUSING IMPACT FUND IS OUR DIRECT LENDING PROGRAM. 
          WE PROVIDE SHORT TERM AND LONG TERM FINANCING THROUGH IT, AND EVEN 
          [01:35:01]
OFFER A FORGIVABLE LOAN DEDICATED TO SERVING EXTREMELY LOW INCOME HOUSEHOLDS. 
          MR. WILKINSON SAID EARLIER ABOUT HOW THESE ARE THE HARDEST HOUSEHOLDS TO SERVE, BECAUSE TYPICALLY THEY, THEY ARE SERVICE AND RICH UNITS. 
          SO ON A PER UNIT COST, IT'S MORE EXPENSIVE. 
          AND ALSO YOU ARE HOPING TO COLLECT SOME RENTAL INCOME FROM THEM. 
          AND WHEN THEIR IN INCOME IS 30% OR BELOW MEDIAN FAMILY INCOME, THEY BARELY HAVE ANY MONEY TO PAY WITH. 
          UH, SINCE THIS IS A FUND THAT WE CREATED, THIS IMPACT FUND, WE HAVE DISCRETION OVER THE INCOME LIMITS SERVED. 
          BUT AGAIN, IT IS A PROGRAM THAT PRIMARILY SERVES WORKFORCE HOUSING, WITH THE EXCEPTION OF THAT FORGIVABLE LOAN OPTION THAT I JUST MENTIONED, FOR, UM, FOR THE MOST VULNERABLE TEXANS WITH, WITH, UH, SEVERE COMPLEX HEALTH NEEDS, AND ARE TYPICALLY IN THOSE EXTREMELY LOW INCOME UNITS. 
          UM, MOST OF THIS IS, IS PRIVATE, UH, PUBLIC PARTNERSHIPS AS A LOT OF, MOST OF THE FUNDS THAT WE RAISE ARE FROM FINANCIAL INSTITUTIONS OR OTHER PRIVATE INVESTMENT, UM, ENTITIES. 
          AND THEN THERE'S PHILANTHROPIC INVESTMENT AS WELL. 
          AND THEN WE BLEND IN SOME OF OUR OWN FUNDS. 
          TO DATE, WE HAVE FUNDED MORE THAN $18 MILLION IN LOANS TO CREATE MORE THAN 1900 UNITS OF AFFORDABLE RENTAL HOUSING THROUGH THIS PROGRAM AND 180 AFFORDABLE SINGLE FAMILY HOMES. 
          I SHOULD ALSO MENTION THAT IF YOU'RE USING US FOR FINANCING, WHETHER IT'S THIS IMPACT FUND OR BONDS OR ANYTHING ELSE, THE PROPERTIES DEVELOPED BY THAT FINANCING ARE SUBJECT TO ANNUAL PHYSICAL INSPECTIONS. 
          WE PERFORM TO ENSURE PROPERTY OWNERS ARE COMPLYING WITH GUIDELINES AND REGULATIONS. 
          THIS SPEAKS TO THE ACCOUNTABILITY MEASURES THAT ARE ALSO INCLUDED AS PART OF THIS CHARGE AND THAT WERE MENTIONED EARLIER IN A LINE OF QUESTIONING. 
          THE LAST DEVELOPER FINANCE PROGRAM IS OUR AFFORDABLE COMMUNITIES OF TEXAS PROGRAM, WHICH IS OUR LAND BANK AND LAND TRUST PROGRAM. 
          UH, WE CREATED THIS AFTER THE, THE MORTGAGE CRISIS TO HELP STABILIZE COMMUNITIES EXPERIENCING HIGH RATES OF FORECLOSURE. 
          WE WORK IN PARTNERSHIP WITH NON-PROFIT DEVELOPERS ACROSS THE STATE TO ACQUIRE AND REDEVELOP FORECLOSED HOMES, VACANT LAND AND TAX FORECLOSED PROPERTIES, AND THEN SELL OR RENT THEM TO HOMES THAT INCOME QUALIFY. 
          UH, OVER THE LIFE OF THE PRO PROGRAM, WE'VE ACQUIRED 573 PROPERTIES AND HAVE REDEVELOPED NEARLY 300 OF THEM WITH 30 NONPROFIT HOUSING DEVELOPERS ACROSS THE STATE. 
          WE ALSO RECENTLY BEGAN OFFERING SHORT-TERM LAND BANKING SERVICES TO HELP NONPROFITS THAT NEED TO ACQUIRE A PROPERTY QUICKLY, BUT DON'T HAVE THE CASH TO DO IT. 
          WE'LL PURCHASE IT, HOLD IT WITH MIN MINIMAL CARRYING COST AS WE'RE PROPERTY TAX, EX TAX EXEMPT, AND THEN TRANSFER IT TO THE DEVELOPER WHEN THEY'RE READY TO ACCEPT IT. 
          WHAT I LIKE ABOUT THIS IS THAT IT EMPOWERS NONPROFITS WITH THE ABILITY TO ACQUIRE A PROPERTY QUICKLY, AS OPPOSED TO HAVING TO WAIT ON A SOURCE OF FUNDS AT WHICH TIME THE PROPERTY MAY NO LONGER BE AVAILABLE, ESPECIALLY IN A MARKET LIKE THIS. 
          SO IT ALLOWS US AS AN ENTITY TO STRIKE QUICKLY AND MAKE SURE WE CAN GET THAT PROPERTY IN THE HANDS OF THAT NONPROFIT. 
          I SHOULD ALSO MENTION THAT THERE HAVE BEEN EFFORTS EACH SESSION FOR THE PAST SEVERAL SESSIONS TO EXPAND OUR LAND BANK. 
          UH, THERE HAVE BEEN BILLS FILED THAT WOULD ALLOW US TO WORK WITH SCHOOL DISTRICTS AND CONVERT THEIR SURPLUS PROPERTIES INTO AFFORDABLE HOUSING. 
          AND ALSO THERE HAVE BEEN BILLS FILED THAT WOULD, THAT WOULD ALLOW US TO ACQUIRE PROPERTIES WITH TAX LIENS ON THEM AND CONVERT THEM INTO HOUSING FOR VETERANS. 
          SO THIS IS A TOPIC THAT, UM, YOU ALL, AS LEGISLATORS CONTINUE TO EXPLORE TO SEE IF THERE ARE WAYS TO EXPAND, EXPAND OUR LAND BANK ACTIVITIES. 
          AND WE'RE ALSO PROACTIVELY TRYING TO EXPAND OUR LAND BANK INVENTORY IN SOUTH TEXAS WHERE WE CAN STILL FIND SOME DEALS ON LAND. 
          AND LASTLY, I'LL BRIEFLY MENTION OUR MULTIFAMILY AND SINGLE FAMILY RENTAL PROGRAMS. WE OWN ONE RENTAL COMMUNITY IN EAST AUSTIN THAT PROVIDES STABLE, AFFORDABLE RENTS IN AN AREA TOWN THAT IS RAPIDLY GENTRIFYING. 
          AND THEN WE ALSO OWN 35 SINGLE FAMILY HOMES ACROSS AUSTIN, DALLAS, AND SAN ANTONIO THAT ARE LOCATED, LOCATED IN HIGH OPPORTUNITY NEIGHBORHOODS, BUT PROVIDE DISCOUNTED RENT TO, UH, FAMILIES THAT INCOME QUALIFY. 
          WITH THAT, I'LL CLOSE, HAPPY TO TAKE ANY QUESTIONS. 
          THANK YOU SO MUCH FOR THIS PRESENTATION AND THIS INFORMATION. 
          UH, YOU STATED HERE ON THE LAST POINT THAT YOU HAVE 35 SINGLE HOMES IN AUSTIN, DALLAS, AND SAN ANTONIO. 
          MM-HMM . 
          HOW DO YOU GO ABOUT DECIDING WHAT CITIES WOULD HAVE THOSE TYPE OF HOMES, OR, OR HOW DID YOU SELECT AUSTIN, DALLAS AND SAN ANTONIO TO PROVIDE THESE SINGLE FAMILY HOMES? WE STARTED IN AUSTIN, UH, LAUNCHING IT AS A PILOT PROGRAM WITH SOME NEIGHBORHOODS THAT WE WERE FAMILIAR WITH, WHERE WE SAW A LOW INVENTORY OF, OF AFFORDABLE RENTAL OPPORTUNITIES, ESPECIALLY WITH THE SINGLE FAMILY HOUSING STOCK. 
          AND STARTED TO, UH, BUILD UP OUR PORTFOLIO OF HOMES IN THE AUSTIN AREA. 
          AND THEN OUR BOARD ASKED US TO EXPAND THE PILOT TO DALLAS AND SAN ANTONIO AS WELL. 
          SO IT WAS, IT WAS SOME INTERNAL DECISION MAKING. 
          AND THEN AT THE URGING OF OUR BOARD, DO Y'ALL BUILD THESE UP FROM SCRATCH OR ARE THEY, UH, EXISTING HOMES THAT Y'ALL JUST TAKE OVER? UH, MOST OF THE TIMES THEY'RE EXISTING HOMES. 
          WE HAVE PURCHASED, UH, NEW CONSTRUCTION HOMES. 
          WE ACTUALLY DID THAT IN A SOUTH AUSTIN NEIGHBORHOOD, THE DEVELOPMENT THAT WAS BEING, UM, DEVELOPED BY HABIT, THE HABITAT AFFILIATE THERE. 
          OKAY. 
          THAT'S THE FIRST I'VE HEARD OF THIS PROGRAM, AND, AND IT CAUGHT MY ATTENTION, ESPECIALLY BEING FROM THE SAN ANTONIO AREA REPRESENTATIVE 
          [01:40:01]
CAMPO AND I, AND SO, YOU KNOW, THE CHANCE TO EXPAND THIS IN THE, IN THAT AREA WOULD BE GREAT, AND OBVIOUSLY IN OTHER MAJOR CITIES ALSO. 
          SO, THANK YOU. 
          SURE. 
          ANY QUESTIONS? MEMBERS? THANK YOU SO MUCH FOR YOUR TESTIMONY TODAY. 
          THANK YOU. 
          CHAIRMAN, CHAIR, NOW CALLS THE TEXAS ASSOCIATION OF BUILDERS. 
          MR. ED ELLA. 
          ED, IF YOU COULD PLEASE STATE YOUR NAME, WHO YOU REPRESENT, YES. 
          AND THEN YOU CAN BEGIN YOUR TESTIMONY. 
          THANK YOU FOR BEING HERE TODAY. 
          THANK YOU. 
          GOOD MORNING, MR. CHAIRMAN AND MEMBERS. 
          MY NAME IS ED TARA VELA. 
          I'M A DEVELOPER FROM HOUSTON, AND I'M HERE ON BEHALF OF THE GREATER HOUSTON BUILDERS ASSOCIATION AND THE TEXAS ASSOCIATION OF BUILDERS. 
          UH, MY COMPANY TERRA CORP, WAS FORMED IN 95. 
          I WAS TWICE AWARDED DEVELOPER OF THE YEAR IN 2004 AND 2015. 
          UM, WE SEEM TO GRAVITATE TOWARD FIRST TIME HOME BUYER MARKET AND AT THE ENTRY LEVEL PRICE. 
          UM, I HAVE BEEN, I AM A PAST PRESIDENT OF A COMMUNITY DEVELOPMENT CORPORATION OR A CDC. 
          IT WAS FORMED FOR THE DEVELOPMENT AND SALE OF AFFORDABLE HOUSING IN NEAR NORTH HOUSTON. 
          UM, AS YOU CAN SEE, I HAVE FIRSTHAND EXPERIENCE WITH THE SUCCESS AND FAILURES OF AFFORDABLE HOUSING DEVELOPMENT AND WHY SOME THINGS WORK AND SOME THINGS DON'T. 
          MY REMARKS WILL BE FOCUSED ON SINGLE FAMILY RESIDENTIAL FOR SALE HOUSING. 
          IT'S NOT, UH, MULTIFAMILY FOR RENT. 
          SO MY REMARKS SHOULD BE TAKEN IN THAT CONTEXT. 
          UM, AS WE'RE ALL AWARE, THE DREAM OF HOME OWNERSHIP IS SLIPPING FURTHER AWAY FROM A VAST NUMBER OF AMERICANS. 
          HOUSING AFFORDABILITY AND AVAILABILITY ARE OF PARAMOUNT CONCERN TO US AS HOME BUILDERS. 
          AND TO DEMONSTRATE HOW TRULY SENSITIVE THE HOUSING MARKET IS TO RISING COST FOR EVERY $1,000 INCREASE IN THE PRICE OF A HOME, 22,000 HOUSEHOLDS ARE PRICED OUTTA THE MARKET DUE TO NOT QUALIFYING FOR A MORTGAGE ENTRY-LEVEL. 
          HOUSING IS AT THE HIGHEST DEMAND, BUT IT'S ALSO THE MOST PRODU DIFFICULT TO PRODUCE. 
          THE MEDIAN HOUSEHOLD INCOME IN TEXAS IS $64,000, WHICH QUALIFIES FOR A $230,000 HOME. 
          THE MEDIAN HOME PRICE IN TEXAS IS $349,000. 
          NOW, I'M SURE YOU'RE GONNA HEAR SOME DIFFERENT NUMBERS IN THAT, BUT THOSE ARE IN THE BASIC RANGE OF, OF SOME OF THE OTHER NUMBERS THAT HAVE BEEN TOSSED OUT. 
          ABOUT 1200 PEOPLE ARE MOVING TO TEXAS EVERY DAY, AND WITH THIS POPULATION GROWTH COMES NEEDED, HOUSING, NEED FOR HOUSING STOCK, MUCH OF IT WORKFORCE HOUSING. 
          SO THE QUESTION IS, ARE PPPS OR PUBLIC-PRIVATE PARTNERSHIPS A POTENTIAL AVENUE TO FACILITATE ATTAINABLE WORKFORCE HOUSING? AND I THINK THE ANSWER IS MOST CERTAINLY YES, AS LONG AS THEY'RE STRUCTURED PROPERLY MINIMIZING GOVERNMENT INVOLVEMENT. 
          IT SHOULD BE NOTED THAT MANY OF THESE EXAMPLES ARE BEING DONE AT A MUNICIPAL OR COURT COUNTY LEVEL, NOT AT THE STATE LEVEL, BUT PERHAPS SOME OF THESE IDEAS CAN BE ADAPTED ON THE STATE LEVEL. 
          SO I USE THE TERM GOVERNMENT LOOSELY AS IT REFERS TO ANY OF THESE TYPES OF GOVERNMENT. 
          UM, WHAT ARE THE MAIN LESSONS LEARNED FROM MY EXPERIENCE WITH WORKFORCE HOUSING? IS THE LESS GOVERNMENT INVOLVEMENT, THE EASIER AND CHEAPER THINGS GET. 
          BEFORE WE TALK ABOUT WHAT GOVERNMENT MIGHT DO TO HELP, LET'S TALK FIRST ABOUT SOME EXAMPLES OF WHAT GOVERNMENT SHOULDN'T DO. 
          GOVERNMENT SHOULDN'T IMPOSE MINIMUM LOT SIZES ON A COUNTY LEVEL, AND BY EXTENSION COERCE THE MUNICIPALITIES IN THAT COUNTY TO ALSO ADHERE TO THESE MINIMUM LOT SIZES. 
          AFFORDABLE HOMES JUST CAN'T BE BUILT ON 9,600 SQUARE FOOT LOTS, ALTHOUGH IT DOESN'T APPEAR LEGAL ON THE SURFACE. 
          THERE WERE SOME VERY CLEVER IDEAS USED TO DEVISE THESE WORKAROUNDS AROUND STATE LAW. 
          DENSITIES ARE ONE OF THE FEW WAYS TO ACHIEVE COST SAVINGS. 
          SOMETHING ELSE THE GOVERNMENT SHOULDN'T DO IS IMPOSE NEW BUILDING CODES THAT ADD SIGNIFICANTLY TO THE COST OF THE HOME WITHOUT ANY, AT, WITHOUT ADDING ANY TRUE BENEFIT OR LIFE SAFETY FEATURE, THAT YOU SHOULD NOT FORCE AN ENGINEER. 
          YOU SHOULD NOT BE FORCED TO ENGINEER OR WIRE PLUM A HOME FOR THE FUTURE OF WHAT HOMEOWNERS MAY OR MAY NOT WANT IN THE FUTURE. 
          UM, THERE ARE OTHER WAYS FOR GOVERNMENT TO BE INVOLVED, JUST NOT IN THE DAY-TO-DAY, UH, BAKE, UH, DAY-TO-DAY, UH, DEVELOPING PROJECTS. 
          UM, THESE ARE JUST TWO BROAD EXAMPLES OF THE REGULATORY BURDENS, UM, THAT WE EXPERIENCE. 
          THE AFFORDABLE HOUSING, THE AFFORDABILITY OF HOUSING CAN BE IMPROVED IF PUBLIC POLICY MAKERS CONSIDER THE IMPACT OF THEIR DECISIONS AND ON THE COST OF THE AVAILABILITY AND COST OF OF HOUSING. 
          SO LET'S TALK ABOUT SOME THINGS THAT CAN BE DONE. 
          UM, I THINK YOU'VE HEARD SOME OF THESE. 
          I'LL JUST EXPAND ON THEM A LITTLE FURTHER. 
          IN ONE EXAMPLE, THE GOVERNMENT, THE GOVERNMENT MAY DECIDE TO DEVELOP INFRASTRUCTURE SUCH AS ROADS, DRAINAGE, OR EVEN WATER SEWER PLANTS TO OPEN UP NEW AREAS TO FACILITATE THE DEVELOPMENT OF AFFORDABLE COMMUNITIES. 
          THEY PRIME THE PUMP, SO TO SPEAK. 
          ANOTHER OPTION COULD BE DOING SOMETHING LIKE 
          [01:45:01]
A CHAPTER 3 83 81 ECONOMIC DEVELOPMENT AGREEMENT, BUT ADAPTED ON A STATE LEVEL. 
          UM, IN ANOTHER EXAMPLE, THE CITY OF HOUSTON DEVISED A PROGRAM CALLED THE DEVELOPER PARTICIPATION CONTRACT PROGRAM, WHICH WOULD REIMBURSE THE DEVELOPER A CERTAIN AMOUNT OF MONEY FOR INFRASTRUCTURE AS THE HOME SOLD BELOW A SPECIFIED PRICE, WHICH IN THIS CASE WAS THE MEDIUM PRICE OF A HOME IN THE HOUSTON AREA. 
          IN ADDITION, WATER AND SEWER CAPITAL RECOVERY CHARGES ARE WAIVED ON NEW HOMES THAT ARE SOLD BELOW THIS PRICE, PROVIDING ADDITIONAL INCENTIVES FOR WORKFORCE HOUSING. 
          SO THIS PROVIDES A SOMEWHAT HANDS-OFF APPROACH BY THEIR GOVERNMENT, BUT ALSO PROVIDES ASSISTANCE TO THE, TO THE HOME BUILDING COMMUNITY. 
          UM, THE CITY HAS TAKEN THIS IDEA ONE STEP FURTHER AND THEY'VE CREATED A NEW PROGRAM CALLED THE AFFORDABLE HOME DEVELOPMENT PROGRAM, WHICH IS CURRENTLY UNDERWAY AND COMBINES MANY OF THE ASPECTS OF THE DPC PROGRAM, BUT ALSO ADDS ADDITIONAL INCENTIVES. 
          UM, THESE ARE, THERE ARE SOME GOOD IDEAS HERE, BUT THERE'S JUST A BIT TOO MUCH BUREAUCRACY INVOLVED FOR A LOT OF FOLKS IN THE PRIVATE SECTOR. 
          UM, THAT'S ONE OF THE REASONS I FEEL HUD FUNDS ARE, ARE A VERY DIFFICULT WAY TO GO WHEN YOU'RE TRYING TO ACHIEVE, UH, THESE TYPES OF, OF AFFORDABILITY DEVELOPMENTS. 
          UH, THERE'S SO MANY RULES AND REGULATIONS THAT COME ASSOCIATED WITH THOSE DOLLARS THAT YOU END UP HAVING A VERY HIGH COST AFFORDABLE HOUSE. 
          UM, A PROGRAM THAT HARRIS COUNTY IS CURRENTLY DOING IS THEY'RE BUYING NEW HOMES AND EXISTING SUBDIVISIONS AT A SLIGHTLY REDUCED RETAIL PRICE. 
          THEN THEY RESELL THE HOME TO THE ULTIMATE BUYER AT A LOWER AMOUNT. 
          THIS PROGRAM SEEMS TO WORK PRETTY WELL, PRODUCES MIXED INCOME NEIGHBORHOODS, AND THE SUBSIDIZED HOMES ARE INDISTINGUISHABLE FROM THE MARKET RATE HOMES, AND IT WORKS NATURALLY WITH THE WAY BUILDERS AND DEVELOPERS DO BUSINESS. 
          TO ME, THE SIMPLEST SOLUTION IS USUALLY THE BEST SOLUTION. 
          AND THIS APPROACH MAKES A LOT OF SENSE, SO IT SHOULD BE ENCOURAGED. 
          SO IN SUMMARY, I'D JUST LIKE TO THANK THE COMMITTEE FOR ALLOWING ME TO TESTIFY ON, ON SUCH AN IMPORTANT TOPIC, AND WE'RE HERE TO OFFER OUR SUPPORT FROM THE TEXAS ASSOCIATION OF BUILDERS OR THE GREATER HOUSTON AND BUILDERS ASSOCIATION. 
          IF YOU CARE TO USE THIS AS A RESOURCE FOR THE FUTURE, WE'RE, WE'RE READY TO HELP. 
          SO THANK YOU. 
          THANK YOU SO MUCH FOR BEING HERE TODAY AND FOR YOUR TESTIMONY. 
          UH, IT SEEMS LIKE YOU HAVE A LOT GOING ON HERE IN THE CITY OF HOUSTON IN TERMS OF THIS AREA THAT WE'RE STUDYING TODAY. 
          YEAH. 
          AND SO THANK YOU FOR YOUR EFFORTS. 
          IT'S IMPORTANT FOR OUR ECONOMY AND FOR THE FAMILIES THAT LIVE AND WORK HERE IN THE STATE OF HOUSTON AREA AND THROUGHOUT THE STATE OF TEXAS. 
          SO THANK YOU FOR YOUR EFFORTS. 
          MEMBERS. 
          ANY QUESTIONS FOR THE TEXAS ASSOCI ASSOCIATION OF BUILDERS? THANKS SO MUCH FOR BEING HERE TODAY. 
          OKAY, THANK YOU, CHERYL. 
          NOW CALL FROM THE APARTMENT ASSOCIATION, JOHN BO BOAK. 
          MY APOLOGIES IF I, YOU GOT IT. 
          OKAY. 
          CONGRATULATIONS. 
          PLEASE STATE YOUR NAME, WHO YOU REPRESENT, AND THEN YOU MAY BEGIN YOUR TESTIMONY. 
          THANK YOU FOR BEING HERE TODAY FOR SURE. 
          GOOD AFTERNOON, CHAIRMAN CORTEZ AND COMMITTEE MEMBERS. 
          MY NAME IS JOHN BOAK. 
          I'M HERE TODAY REPRESENTING THE TEXAS APARTMENT ASSOCIATION, AND I AM THE PRESIDENT OF VERITAS EQUITY MANAGEMENT. 
          WE ARE A SMALL BUSINESS THAT OWNS AND MANAGES SIX MULTI-FAMILY PROPERTIES HERE IN HOUSTON WITH OVER 1500 HOMES IN THE HOUSTON AREA. 
          UM, WE FOCUS ON RENOVATING AND RESTORING AGING PROPERTIES INTO CLEAN, SAFE, AND FUNCTIONAL HOMES WHILE MAINTAINING AFFORDABILITY. 
          THAT IS, WE ARE FOCUSING ON NATURALLY OCCURRING AFFORDABLE HOUSING WITH A LOWERCASE AID. 
          WE DON'T HAVE SUBSIDIES INVOLVED IN ANY WAY. 
          WE'VE BEEN RECOGNIZED WITH LOCAL, STATE, AND NATIONAL AWARDS FOR OUR WORK, INCLUDING MULTIPLE PROPERTIES THAT HAVE RECEIVED THE NATIONAL PROPERTY OF THE YEAR, AS WELL AS RECOGNITION FOR OUR EFFORTS ON ENERGY AND WATER CONSERVATION HERE. 
          SO TO SUMMARIZE THAT, WE SPECIALIZE AND FOCUS ON PROVIDING HOUSING TO BLUE COLLAR WORKING CLASS FAMILIES SO THAT THEY CAN SAFELY AND AFFORDABLY RAISE THEIR FAMILIES ON LIMITED INCOMES. 
          OUR TYPICAL RESIDENT WILL EARN SOMEWHERE BETWEEN 25 AND 45,000 A YEAR. 
          THAT'S THE INCOME WE'RE WORKING WITH, AND THEY RELY ON US TO MAINTAIN AFFORDABLE RENTS AND QUALITY HOUSING. 
          SO MY COMPANY FOCUSES MOST ON PROPERTY OPERATIONS AND MANAGEMENT, AND AS YOU'VE HEARD, THERE'S OTHERS WHO CAN SPEAK MORE ABOUT THE CHALLENGES OF DEVELOPING AFFORDABLE HOUSING. 
          I'LL JUST BRIEFLY SAY, WITH INCREASING COSTS FOR LAND MATERIALS LABOR, IT IS VIRTUALLY IMPOSSIBLE RIGHT NOW TO DEVELOP ANYTHING EXCEPT WHAT THE INDUSTRY WOULD CALL A CLASS A PLUS PROPERTY. 
          UM, WHICH MY RESIDENTS TYPICALLY CAN'T LIVE IN. 
          AND THE NATIONAL APARTMENT ASSOCIATION ESTIMATES WE NEED TO BUILD $328,000, I'M SORRY, 328,000 NEW APARTMENT HOMES EVERY YEAR, NATIONALLY UNTIL 2030 JUST TO MEET THE HOUSING DEMAND. 
          SO FOR DEVELOPMENT, WE NEED TO HELP CREATE MORE MARKET BASED SOLUTIONS FOR BRINGING DOWN THE COST OF, OF DEVELOPMENT AND ENCOURAGE POLICIES THAT SPEED THE PERMITTING PROCESS, HAVE LAND USE AND ZONING THAT ENCOURAGES DEVELOPMENT OF MULTIFAMILY PROPERTIES AND KEEPS TAXES AND FEES IN CHECK AND DIRECTLY RELATED TO 
          [01:50:01]
THE SERVICES THAT WE AS PROPERTY OWNERS ARE PROVIDING. 
          NOW, PUBLIC PRIVATE PARTNERSHIPS, UH, IS ALSO A WAY TO MAKE A DIFFERENCE. 
          I KNOW IN SAN ANTONIO, OUR LOCAL ASSOCIATION RECENTLY SUPPORTED PASSAGE OF THE CITY'S FIRST AFFORDABLE HOUSING BOND THAT PROVIDED $150 MILLION FOR AFFORDABLE HOUSING, INCLUDING FUNDS FOR PRESERVATION AND THE REHABBING OF EXISTING HOUSING, AS WELL AS NEW DEVELOPMENT. 
          BUT HERE IN HOUSTON, I WANNA TALK FOR A SECOND. 
          WE HAVE AN INCREDIBLE EXAMPLE OF A SUCCESSFUL PUBLIC PRIVATE PARTNERSHIP THROUGH A PROGRAM CALLED NEST QUEST. 
          NEST QUEST BRIDGES THE GAP BETWEEN HOUSING PROVIDERS LIKE MYSELF AND SECTION EIGHT VOUCHER RECIPIENTS WITH YOUNG CHILDREN, SPECIFICALLY BY TAKING ON THE INCREDIBLE ADMINISTRATIVE BURDEN THAT'S REQUIRED FOR SECTION EIGHT PARTICIPATION AND ALLOWING GROUPS LIKE MINE TO HOUSE VOUCHER HOLDERS, UM, WITHOUT HAVING TO COMPLETELY REWORK OUR OPERATING SYSTEM TO TO TO DO SO. 
          IT'S A FANTASTIC PROGRAM. 
          THEY HAVE A GREAT TRACK RECORD. 
          UM, THEY'VE BEEN FUNDED THUS FAR BY A PATCHWORK OF PUBLIC AND PRIVATE GRANTS, BUT ARE IN DIRE NEED OF ADDITIONAL PERMANENT FUNDING TO SUSTAIN THEIR OPERATIONS. 
          SO THAT'S SOME SHORT TERM, UM, SOLUTIONS THAT WE, THAT ARE WORK GOING ON IN THE BIG PICTURE. 
          THE LONG TERM REALITY, HOWEVER, IS THAT TO, UM, BEST HELP WORKING CLASS TECH TEXANS HAVE ACCESS TO AFFORDABLE HOUSING. 
          WE HAVE TO KEEP COSTS IN CHECK, ESPECIALLY GOVERNMENT DRIVEN COSTS FOR OPERATORS LIKE MYSELF WHO ARE DRIVEN AND TRYING TO PROVIDE THAT QUALITY AFFORDABLE HOUSING. 
          BUT WE'RE FACING THE HEADWINDS OF EVER INCREASING COSTS TO OPERATE OUR BUSINESSES. 
          UM, I'M GONNA GIVE A COUPLE QUICK EXAMPLES. 
          I'M SURE YOU ALL ARE TIRED OF HEARING ABOUT PROPERTY TAXES BY NOW, BUT BEAR WITH ME FOR A SECOND. 
          UM, MY MOST AFFORDABLE COMMUNITY HERE IN THE CITY IS CALLED LIE DE VISTA. 
          LIE DE VISTA HAS RENTS IN THE SEVEN TO $800 PER MONTH RANGE. 
          AND THIS YEAR ALONE, OUR PROPERTY TAX VALUATION, WHICH OUR PROPERTY TAXES IS OUR LARGEST OPERATING EXPENSE, OUR PROPERTY TAX VALUATION INCREASED BY 47% IN A SINGLE YEAR. 
          UM, APARTMENTS DON'T HAVE ANY KIND OF CAPS OR THE EQUIVALENT OF A HOMESTEAD EXEMPTION. 
          SO THE TAXES ON THIS ONE COMMUNITY WENT UP BY $135,000 IN ONE YEAR. 
          SO THAT MEANS I WOULD HAVE TO RAISE THE RENT ON EVERY ONE OF MY WORKING CLASS FAMILIES LIVING THERE BY $47 A MONTH JUST TO COVER THE INCREASE IN THE PROPERTY TAX BILL. 
          NOT, NOT THE WHOLE BILL, JUST THE NEW, THE NEW PORTION. 
          MM-HMM . 
          UM, SO TODAY ABOUT $148 OF MONTHLY RENT GOES JUST TO PAY THE PROPERTY TAX BILL. 
          IT'S FIVE YEARS AGO THAT WAS $68. 
          SO YOU CAN SEE IT'S A HUGE INCREASE. 
          AND TEXAS RENTERS ARE PAYING A LOT OF PROPERTY TAXES. 
          LIKEWISE, UM, INSURANCE HAS SKYROCKETED OVER THE LAST, UM, FEW YEARS IN MY COMMUNITIES, WHAT USED TO BE BE A COST OF $16 PER HOME PER MONTH IN FIVE YEARS HAS SKYROCKETED TO $64 PER HOME PER MONTH. 
          SO THAT'S A 300% INCREASE IN OUR INSURANCE COSTS IN FIVE YEARS, AND WE'RE FACING THOSE KINDS OF INCREASES ACROSS THE BOARD. 
          CARPET HAS GONE UP BY 56% IN FIVE YEARS. 
          APPLIANCE COSTS HAVE GONE UP BY 88% IN FIVE YEARS. 
          AND LABOR COSTS FOR POSITIONS LIKE A SKILLED MAINTENANCE PROFESSIONAL, FOR EXAMPLE, HAVE GONE UP 43% IN THE LAST FIVE YEARS. 
          SO YES, RENTS HAVE GONE UP, ABSOLUTELY, BUT THERE'S A LIMIT TO HOW MUCH I CAN INCREASE RENT EVEN WHEN MY OPERATING EXPENSES ARE INCREASING AT SUCH A FAST RATE. 
          THE NATIONAL APARTMENT ASSOCIATION DID A STUDY LAST YEAR AND FOUND THAT MORE THAN 90% OF A RENT DOLLAR GOES TO PAY TAXES, LENDERS, AND OPERATING EXPENSES. 
          SO AS WE GET FURTHER SQUEEZED, IT HAS BECOME INCREASINGLY DIFFICULT TO CONTINUE TO PROVIDE OUR RESIDENTS WITH THAT CRUCIAL AFFORDABLE HOUSING THAT THEY NEED. 
          AND THERE'S PLENTY OF REPORTS ABOUT RENTS GOING UP DOUBLE DIGIT BY DOUBLE DIGIT RATES, BUT I KNOW AT MY COMMUNITIES AND IN MY BUSINESS, THE AMOUNT OF PROFIT LEFT OVER AFTER THESE INCREASED EXPENSES IS LESS TODAY, EVEN WITH THOSE RENT INCREASES THAN IT WAS IN 2019, THOUGH AT OUR LEAD TO VISTA PROPERTY THAT I MENTIONED EARLIER, WITH THE PROPERTY TAXES, WE HAVE BEEN FORCED TO PUT OFF REALLY IMPORTANT PROJECTS LIKE REPAIRING POTHOLES IN THE PARKING LOT AND ADDING DRAINAGE TO ADDRESS FLOODING DURING A RAINSTORM, BECAUSE THOSE FUNDS NOW HAVE TO BE REALLOCATED TO PAY FOR PROPERTY TAX AND INSURANCE INCREASES. 
          AND MY COMPANY IS JUST ONE OF MANY TAA MEMBERS THAT ARE COMMITTED TO DOING EVERYTHING WE CAN TO HELP PROVIDE AFFORDABLE WORKFORCE HOUSING, BUT WE JUST CAN'T DO IT WITHOUT POLICIES THAT WILL HELP PROPERTY OWNERS HAVE MORE PREDICTABLE AND STABLE OPERATING EXPENSES. 
          SO THANK YOU SO MUCH FOR LETTING ME COME BEFORE WE THIS MORNING. 
          UM, I KNOW THAT WAS A LOT. 
          I'LL BE HAPPY TO ANSWER ANY QUESTIONS. 
          THANK YOU, JOHN, FOR THE INFORMATION MEMBERS. 
          ANY QUESTIONS? WE HAVE A STRONG WORKING RELATIONSHIP WITH THE SAN ANTONIO DEPARTMENT ASSOCIATION. 
          AWESOME. 
          UM, MR. MARK ROSS HAS BEEN A STRONG ADVOCATE FOR, UM, GOOD FRIENDS DEPART. 
          OH, MARK IS A GREAT GUY. 
          UM, KNOW HIS FAMILY VERY WELL BACK WHEN HIS FATHER, BOB ROSS HAD THE COMPANY, UH, ROSS REALTY. 
          AND SO WE HAVE A STRONG WORKING RELATIONSHIP WITH THE APARTMENT ASSOCIATION THERE, AND WE APPRECIATE ALL YOUR EFFORTS. 
          UM, I DON'T THINK THERE WAS 
          [01:55:01]
ANY QUESTIONS, SO THANK YOU AGAIN FOR BEING HERE TODAY. 
          THANK YOU. 
          THE CHAIR CALLS DAVID WHEATON WITH TEXAS HOUSERS. 
          THANK YOU FOR BEING HERE TODAY. 
          PLEASE STATE YOUR NAME AND WHO YOU'RE WITH FOR THE RECORD TODAY. 
          MY NAME IS DAVID WHEATON. 
          I'M THE ADVOCACY DIRECTOR AT TEXAS HOUSERS. 
          UH, THANK YOU MEMBERS. 
          THANK YOU CHAIR, UH, FOR HAVING US TALK ABOUT, UH, THE, THESE IMPORTANT ISSUES. 
          I KNOW WE'VE HEARD A LOT OF TALK ABOUT 30% TO 60% A MI, AND I JUST WANNA PUT A FACE ON THAT. 
          SO WHEN WE TALK ABOUT PEOPLE WHO ARE AT 30% AND 6% A MI WE'RE TALKING ABOUT YOUR GROCERY STORE CLERK AT HEB, UH, THE PEOPLE YOU SAW WALKING IN YOUR SECURITY GUARDS THAT, THAT MAY, UH, SECURE, UH, PUBLIC PROPERTIES. 
          AND WE'RE ALSO TALKING ABOUT HOME HEALTHCARE WORKERS THAT MAY, UH, TAKE CARE OF OUR MOTHERS AND OUR GRANDMOTHERS. 
          SO I JUST WANNA GIVE A A, A FACE TO, TO WHAT WE'RE KIND OF TALKING ABOUT HERE TODAY FOR, FOR WORKFORCE HOUSING AND, AND ESPECIALLY IF WORKFORCE HOUSING FOR 30% TO 6% A MI, UH, THE NATIONAL LOW INCOME HOUSING COALITIONS, THEY RELEASE AN ANNUAL GAP REPORTS THAT BREAKS DOWN THE NEEDS FOR HOUSING UNITS ACROSS THE COUNTRY AT DIFFERENT LEVELS OF AFFORDABILITY. 
          THE 20, UH, TWO, THE 2022 GAP REPORT, UH, LIKE PRIOR REPORTS, SHOWS THAT THE SHORTAGE OF HOUSING IS MOST SEVERE AT THE LOWEST HOUSEHOLD INCOME LEVELS HERE IN TEXAS, UH, LIKE MR. WILKINSON SAID, THERE'S JUST 29 AFFORDABLE AND AVAILABLE HOMES PER A HUNDRED, UH, RENTER HOUSEHOLDS AT OR BELOW 30% A MI AND JUST 51 HOMES PER A HUNDRED HOUSEHOLDS AT OR BELOW, UH, 50% A MI. 
          UH, JUST TO GET DOWN TO THE NUMBERS JUST A LITTLE BIT, UH, REPRESENTATIVE JOHNSON, THAT MEANS HERE IN HOUSTON, UH, RIGHT NOW THERE ARE ONLY 19 AFFORDABLE AND AVAILABLE RENTAL UNITS PER A HUNDRED HOUSEHOLDS AT 30% A MI AND JUST 47, UH, AT 50% A MI, UH, REPRESENTATIVE COMPOST IN SAN ANTONIO. 
          UH, THAT IS 31, UH, RENTAL UNITS AT 30% A MI AND 40%, UH, RENTAL UNITS AT 50% A MI. 
          SO THERE'S AGAIN, A STREAM NEED FOR HOUSING, UH, FOR OUR LOW INCOME WORKERS, UH, RIGHT NOW, UH, IN HOUSTON, UH, FOR A, SOMEBODY WHO, AGAIN, IS A GROCERY STORE CLERK OR SOMETHING LIKE THAT, IS LOOKING TO RENT FOR THEIR HOUSEHOLD, UH, A TWO BEDROOM HOUSE RIGHT NOW IN THE HOUSTON WOODLANDS AREA. 
          UM, THERE ARE ONLY 87 AVAILABLE TWO BEDROOM HOUSES RIGHT NOW FOR THEM TO RENT, UH, FOR PEOPLE AT 80% A MI THERE'S 543. 
          SO WE SEE THAT THERE'S AN EXTREME, UH, VAST DIFFERENCE BETWEEN IF I'M LIVING AT 30% TO 6% A MI OR IF I'M AT 80% OR ABOVE A MI. 
          AND THE SAME GOES FOR SAN ANTONIO. 
          UH, RIGHT NOW, IF I'M A GROCERY STORE WORKER IN SAN ANTONIO AT HEB, UM, I, THERE'S ONLY 20, UH, TWO BEDROOM UNITS HOUSES RIGHT NOW. 
          UM, AND IF I'M AT 80%, UH, PLUS THERE ARE 239 UNITS. 
          AND WE ALSO SEE THAT LOW INCOME WORKERS ARE ACTUALLY GROWING HERE IN THE STATE OF TEXAS AS WELL AS THE SERVICE INDUSTRY GROWS. 
          UH, SO RIGHT NOW, UH, WE ARE EXPECTING, UH, IN SAN ANTONIO IN THAT METRO AREA, UH, FOR JUST OVER THE COUNTER WORKERS, UH, THAT THERE'S GONNA BE AN INCREASE. 
          UH, THIS IS STATISTICS FROM THE TEXAS WORKFORCE COMMISSION OF AN EXTRA 50,276 RESIDENTS THAT ARE GONNA ENTER INTO THE SAN ANTONIO AREA. 
          UM, AND IN THE HOUSTON AREA, UH, THERE ARE, AGAIN, FOR, UH, RETAIL SERVICE PERSONS OR OR COUNTER WORKERS, THERE'S GONNA BE ABOUT 700, UH, 70,000, UH, NEW WORKERS THAT ARE GONNA COME INTO THE HOUSTON AREA. 
          SO THERE'S ALREADY NO HOUSING FOR THEM. 
          THERE ARE GOING TO COME. 
          UM, AND SO WE JUST WANT, YOU KNOW, SHOW THE EXACERBATING NEED FOR LOW INCOME WORKERS AND, AND THEIR NEEDS WHEN IT COMES TO HOUSING. 
          UH, SO WITH THAT, I'LL END MY TESTIMONY AND IF THERE'S ANY QUESTIONS, UH, AND, AND OUR AND TEXAS HOUSES WOULD BE, UH, WILLING AND WOULD LOVE TO WORK FOR ANY WORK WITH ANY OF THE OFFICES WHEN IT COMES TO LOOKING FOR SOLUTIONS, UH, FOR, UM, UH, LOW INCOME WORKERS. 
          THANK YOU, SIR. 
          THANK YOU. 
          ANY QUESTIONS? THANK YOU. 
          ALL RIGHT. 
          THANK Y'ALL SO MUCH. 
          THE CHAIR CALLS EMILY HAMILTON FROM GEORGIA MASON UNIVERSITY. 
          THANK YOU FOR BEING HERE TODAY. 
          PLEASE STATE YOUR NAME AND WHO YOU'RE WITH FOR THE RECORD TODAY. 
          THANK YOU MEMBERS OF THE COMMITTEE. 
          I'M EMILY HAMILTON. 
          I'M A SENIOR RESEARCH FELLOW AT THE MERCATUS CENTER AT GEORGE MASON UNIVERSITY, WHERE I STUDY HOUSING AFFORDABILITY AND THE EFFECTS OF LAND USE RESTRICTIONS. 
          WE CAN ALL AGREE THAT ABUNDANT WORKFORCE HOUSING IS ESSENTIAL FOR THE QUALITY OF LIFE OF TEXAS RESIDENTS AND FOR THE ONGOING 
          [02:00:01]
ECONOMIC GROWTH OF THE STATE, BUT WORKFORCE HOUSING IS TRENDING IN THE WRONG DIRECTION HERE. 
          I THINK THE MOST INTUITIVE MEASURE OF WORKFORCE HOUSING AVAILABILITY IS WHAT'S CALLED THE CARPENTER INDEX. 
          IT'S PRODUCED BY THE AMERICAN ENTERPRISE INSTITUTE, AND THIS INDEX LOOKS AT THE PERCENT OF HOUSES IN A REGION THAT ARE TYPICAL TO, THAT ARE AFFORDABLE TO THE TYPICAL CARPENTER HOUSEHOLD. 
          SO WHAT PERCENT OF A REGION'S HOUSES CAN BE BOUGHT BY THE PEOPLE WHO BUILD THOSE HOUSES. 
          AND IN THE DALLAS-FORT WORTH REGION, FOR EXAMPLE, THE CARPENTER INDEX WENT FROM OVER 50% IN 2012 TO JUST OVER 20% JUST 10 YEARS LATER. 
          AND IT'S NOT JUST IN DOLLAR TERMS THAT THE SHORTAGE OF WORKFORCE HOUSING IS CAUSING PROBLEMS FOR TEXAS HOUSEHOLDS. 
          ABOUT 8% OF WORKERS IN THE STATE NOW COMMUTE OVER AN HOUR EACH WAY BECAUSE THEY CAN'T AFFORD TO LIVE WHERE THEIR JOB OPPORTUNITIES ARE LOCATED. 
          THIS CUTS INTO TIME WITH THEIR FAMILIES, TIME FOR SLEEP, AND TIME TO PURSUE THEIR INTERESTS OUTSIDE OF THEIR JOBS. 
          TODAY'S CHARGE, UH, FOCUSES ON, UH, POT, UH, PUBLIC PRIVATE PARTNERSHIPS AS A POTENTIAL OPTION TO BUILD WORKFORCE HOUSING, BUT I'M GOING TO FOCUS ON LAND USE RESTRICTIONS AS A BARRIER TO WORKFORCE HOUSING, REGARDLESS OF WHO IS BUILDING IT. 
          THESE LAND USE RESTRICTIONS APPLY TO PUBLIC-PRIVATE PARTNERSHIPS, BUILDERS, AND PRIVATE SECTOR BUILDERS ALIKE. 
          I'LL GIVE THREE EXAMPLES OF WORKFORCE HOUSING PROJECTS THAT HAVE BEEN PROPOSED JUST WITHIN THE LAST COUPLE OF MONTHS THAT ARE FACING, UH, BARRIERS TO GETTING BUILT ALONG WITH HERE IN HOUSTON. 
          AS A COUNTER EXAMPLE IN FRISCO, THIS MAY 61 TOWNHOUSES WERE VOTED DOWN BY THE CITY COUNCIL, UM, BECAUSE, UH, THEY WOULD'VE REQUIRED A ZONING CHANGE TO GET BUILT ON A VACANT PIECE OF LAND THAT'S NEAR EXISTING SINGLE FAMILY NEIGHBORHOODS. 
          THE CITY COUNCIL MEMBER, UM, ONE OF ONE OF THE CITY COUNCIL MEMBERS WHO VOTED AGAINST APPROVING THESE TOWNHOUSES SAID, THESE TOWN HOMES ARE BEAUTIFUL. 
          I'M SUPER SUPPORTIVE OF THEM BEING BUILT IN FRISCO, BUT JUST NOT IN THIS LOCATION. 
          IN ANOTHER EXAMPLE, IN LAKEWAY, A REZONING WAS PROPOSED FROM COMMERCIAL DEVELOPMENT, UM, TO MULTIFAMILY 267 UNITS OF, UM, MULTIFAMILY HOUSING THAT WOULD BE AFFORDABLE TO HOUSEHOLDS MAKING 60% OF THAT AREA'S MEDIAN INCOME WERE PROPOSED. 
          UH, AND THAT WOULD BE FOUR HOUSEHOLDS MAKING ABOUT $60,000 IN TRAVIS COUNTY FOR A FAMILY OF FOUR. 
          THE MAYOR SAID, IT'S A GREAT IDEA, I JUST WON'T, DON'T WANT TO SEE IT ON THIS LOT. 
          AGAIN, A, UH, LOT THAT WAS ZONED FOR COMMERCIAL DEVELOPMENT, BUT NEAR SINGLE FAMILY HOUSES IN ABILENE, THERE'S A CURRENT, UM, SEVERE SHORTAGE OF WORKFORCE HOUSING THERE. 
          ABOUT 99% OF APARTMENTS ARE CURRENTLY LEASED. 
          A MULTIFAMILY, UH, PROPOSAL WAS AGAIN PROPOSED IN A PIECE OF LAND ZONE FOR COMMERCIAL USE. 
          AND IT'S BEING HELD UP BECAUSE 20% OF, UM, NEARBY LANDOWNERS HAVE SIGNED A PETITION SAYING THAT THEY OPPOSE THIS DEVELOPMENT. 
          IT WILL REQUIRE A THREE QUARTER SUPER MAJORITY VOTE OF THE LOCAL CITY COUNCIL IN ORDER TO APPROVE THE CONDITIONAL USE PERMIT THAT WILL BE NEEDED FOR IT TO GO FORWARD. 
          AND I'LL MENTION, UM, HERE IN HOUSTON, A, UH, AS I SAID, A COUNTER EXAMPLE ECHOING WHAT MS. WHAT MR. TARA SAID, UH, HERE, HERE IN HOUSTON, IN RECENT YEARS, MORE MULTIFAMILY UNITS HAVE BEEN BUILT THAN IN THE CITY OF LOS ANGELES, EVEN THOUGH LA IS ABOUT TWICE AS LARGE, AND THAT'S DUE IN PART TO THE CITY NOT HAVING SINGLE FAMILY ZONING, WHICH MAKES MUCH MORE ABUNDANT SITES AVAILABLE FOR POTENTIAL MULTIFAMILY DEVELOPMENT. 
          ADDITIONALLY, REFORMS TO MINIMUM LOT SIZES HERE IN HOUSTON HAVE MADE IT POSSIBLE TO BUILD, UH, TOWN HOMES AND SMALL LOT SINGLE FAMILY HOUSES THAT ARE, UH, AFFORDABLE HOME OWNERSHIP OPTIONS FOR THE WORKFORCE HERE, UM, THAT ARE NOT POSSIBLE TO BUILD IN MANY OTHER PARTS OF THE STATE. 
          NOW, MANY OF THESE RULES ARE, UM, OF COURSE, LOCAL POLICIES, BUT I THINK THE STATE LEGISLATURE HAS A KEY ROLE, UM, TO PLAY IN THIS AREA BECAUSE LOCALITIES GET THEIR AUTHORITY TO REGULATE LAND USE FROM THE STATE. 
          AND THE ISSUE OF, UH, PROTEST PETITIONS, WHICH MAKE IT VERY HARD TO, UM, BUILD MULTIFAMILY HOUSING WHEN IT'S GOING TO NEED A ZONING CHANGE, ARE A MATTER OF STATE LAW THAT'S CURRENTLY, UM, STANDING IN THE WAY OF WORKFORCE HOUSING BEING BUILT. 
          SO THE, THE COMMITTEE AND THE LEGISLATURE AS A WHOLE HAVE MANY OPPORTUNITIES TO MAKE IT EASIER 
          [02:05:01]
TO BUILD, UM, WORKFORCE HOUSING BY ADDRESSING STATE LAWS, UM, THAT ARE CURRENTLY STANDING IN ITS WAY, AS WELL AS BY POTENTIALLY SETTING SOME LIMITS ON THE LOCAL RESTRICTIONS THAT ARE STANDING IN THE WAY OF, OF MORE WORKFORCE HOUSING GETTING BUILT AND RAISING THE COST OF THOSE WORKFORCE UNITS THAT DO GET BUILT, MEANING THAT PUBLIC DOLLARS CAN'T GO AS FAR, UM, TO SUPPORT MORE HOUSEHOLDS. 
          THANK YOU VERY MUCH, AND I LOOK FORWARD TO ANY QUESTIONS. 
          THANK YOU. 
          UH, MEMBERS, ANY QUESTIONS? OKAY. 
          YOU, YOU'VE DONE SOME STUDIES TO SEE HOW POSSIBLY CITY ORDINANCES HAVE CREATED A BURDEN UPON, UH, AFFORDABLE HOUSING. 
          THAT'S RIGHT. 
          HAVE YOU EVER LOOKED AT, LET'S TAKE A OLDER COMPLEX THAT IS RENTING TO MAINLY, UM, UH, WORKFORCE HOUSING. 
          HAVE YOU EVER HEARD OF CLASS C, CLASS B, CLASS A? YES, SIR. 
          SO I'M TALKING ABOUT A CLASS, A TYPE COMPLEX IN HOUSTON. 
          THAT COMPLEX TODAY MIGHT BE WORTH, LET'S SAY, $80,000 A UNIT. 
          OKAY? CLASS A, AS WE HEARD, MAY BE AS HIGH AS $275,000 A UNIT. 
          WE HAVE BUILDING CODES THAT ARE DESIGNED UNDER THE GUISE A LOT OF TIMES OF SAFETY. 
          AND SO HAVE YOU RUN INTO WHERE ONE OF THESE OLDER COMPLEXES, LET'S SAY YOU HAVE IN PARTICULAR CITIES IN TEXAS AND, UM, AND HOUSTON SURROUNDING AREA, IF YOU HAVE A CERTAIN PERCENTAGE THAT IS DAMAGED OF THAT BUILDING, SO LET'S SAY YOU HAVE A EIGHT UNIT COMP, AN EIGHT UNIT BUILDING INSIDE WHERE THE AVERAGE IS WORTH ABOUT 70,000 A UNIT, AND THE RENT IS, YOU KNOW, 700 BUCKS. 
          YOU HAVE A FIRE THAT DESTROYS FOUR OF THOSE UNITS, AND NOW YOU WANNA REBUILD IT BACK. 
          AND THE CITY THROUGH THEIR ORDINANCES SAYS, WE WANT IT BROUGHT UP TO THE CURRENT INTERNATIONAL BUILDING CODE, WHICH MAY REQUIRE YOU TO SPEND $200,000 A UNIT TO BRING THAT UP TO CODE. 
          BUT A BUILDER OR AN OWNER WILL NOT DO THAT BECAUSE YOU CAN'T PUT IN THAT KIND OF INVESTMENT INTO A PROPERTY THAT'S ONLY WORTH 70,000 A UNIT THAT CAN ONLY GET $700 RENT BECAUSE TO PUT IN AND BUILD IT TO THE NEW CODE, YOU WOULD REQUIRE YOU TO CHARGE, LET'S SAY, $1,500 RENT. 
          AND YOU'RE NOT GONNA GET THAT KIND OF PERSON TO MOVE INTO A COMPLEX THAT'S MADE UP OF PEOPLE WHO ARE MAKING 700 OR PAYING 700. 
          YOU FOLLOW ME? YES, SIR. 
          AND SO WHAT I SEE HAPPENING IS IF THERE IS A SIGNIFICANT ENOUGH DAMAGE, IT JUST IS NEVER RETURNED TO THE MARKET. 
          AND SO YOU, IT'S A WAY FOR A CITY, THIS IS MY OPINION, CAN ACCOMPLISH TWO THINGS. 
          IF THEY WANT TO GET RID OF AFFORDABLE HOUSING, THEY CAN JUST CREATE ORDINANCES UNDER THE GUISE OF SAFETY, WHICH MAKE IT VIRTUALLY IMP IMPRACTICAL TO REBUILD, AND IT WILL SLOWLY DWINDLE YOUR AFFORDABLE HOUSING, UH, THROUGH THAT TYPE OF A MECHANISM. 
          HAVE YOU EVER SEEN THAT? DO YOU FEEL THERE'S A, DO YOU SEE THAT? UH, YES. 
          I THINK THAT CERTAINLY, UM, DOES HAPPEN. 
          UH, MANY BUILDING CODE REQUIREMENTS ARE, UM, A MATTER OF, OF STATE REQUIREMENTS RATHER THAN LOCAL. 
          UM, I'M NOT FAMILIAR WITH, UM, SPECIFIC, UM, FIRE DAMAGE REQUIREMENTS AND POTENTIAL LOCAL VARIATION IN REQUIREMENTS FOR, UH, IN BRINGING, UH, DAMAGED BUILDINGS UP TO STATE CODE. 
          I'D BE HAPPY TO, UH, LOOK INTO THAT. 
          UH, BUT I THINK IT'S, IT'S CERTAINLY THE CASE THAT, UM, BOTH LOCAL ZONING RULES AS WELL AS, UM, BUILDING CODE REQUIREMENTS, UM, CAN MAKE IT IMPOSSIBLE TO, UH, EITHER REPAIR OR, UM, BUILD NEW, UH, WORKFORCE HOUSING. 
          UM, IN, IN MANY CASES, NO, NO, IT'S, IT'S ACTUALLY LOCAL CITY ORDINANCES THAT SET THESE. 
          IN FACT, YOU KNOW, I WAS TRYING TO BRING SOME LEGISLATION TO MAKE A STATE MINIMUM TO TRY TO ELIMINATE THIS KIND OF A PROBLEM THAT I SEE HAPPENING THROUGHOUT THE STATE OF TEXAS. 
          UM, BUT THAT'S WHERE I SEE 
          [02:10:01]
BUILDING CODES BEING USED AS A WAY TO REALLY MAKE IT ALMOST IMPRACTICAL. 
          BECAUSE, YOU KNOW, SOME CITIES MAY HAVE, WE WANT A FIRE SPRINKLER AND, YOU KNOW, A FIRE SPRINKLER IN A COMPLEX THAT'S NEVER HAD ONE. 
          IT'S MORE THAN JUST PUTTING THE FIRE SPRINKLERS THERE. 
          THE, THE PLUMBING SYSTEM MAY NOT BE DESIGNED TO HANDLE THAT KIND OF WATER PRESSURE, WHICH REQUIRES ALL KINDS OF NEW WATER LINES THAT GOES FAR BEYOND THAT BUILDING. 
          AND THAT'S WHY WHAT MY EXPERIENCE IN SEEING IS, YOU'LL SEE, UM, PROPERTIES, OLDER ONES THAT HAVE VACANT SLABS BECAUSE IT'S JUST TOO COSTLY TO BRING UP TO THE NEW BUILDING CODE, EVEN THOUGH THE OTHER NINE, LET'S SAY YOU HAVE 200 UNITS AND YOU HAVE AN EIGHT UNIT BUILDING DAMAGED THAT'S ONLY 4%. 
          THE CITY HAS NO PROBLEM WITH THE OTHER 96% REMAINING LIKE IT IS AND OPERATING, BUT TO BRING THAT 4% BACK UP, YOU JUST CAN'T DO IT. 
          UM, IT'S CERTAINLY THE CASE THAT, UH, RULES THAT MAKE IT MORE EXPENSIVE TO REPAIR OR BUILD NEW HOUSING, UH, ALSO HAVE THE UNINTENDED EFFECT OF, UH, INCREASING THE NUMBER OF PEOPLE WHO LIVE IN OLDER HOUSING, UH, RATHER THAN, THAN NEW HOUSING, UH, THAT MAY BE SAFER, UM, RELATIVE TO THE OLDER HOUSING STOCK. 
          OKAY. 
          THANK YOU. 
          THE CHAIR CALLS KAY REID DUCKETT OF ALLIANCE FOR MULTIFAMILY PRODUCTION. 
          THANK YOU. 
          I HOPE I PRONOUNCED YOUR NAME CORRECT, BUT THANK YOU FOR BEING HERE. 
          AND PLEASE STATE YOUR NAME AND WHO YOU'RE WITH FOR THE RECORD TODAY. 
          THANK YOU, MR. CHAIR. 
          AND THAT'S MUCH BETTER THAN MANY SUBSTITUTE TEACHERS I'VE HAD THROUGHOUT THE YEARS, SO I APPRECIATE THAT. 
          THANK YOU. 
          UH, UH, CHAIRMAN, UH, AND MEMBERS OF THE COMMITTEE, THANK YOU FOR THE OPPORTUNITY TO SPEAK TODAY ABOUT WORKFORCE HOUSING AND ITS ABILITY TO SUPPORT ECONOMIC GROWTH IN TEXAS. 
          MY NAME IS KYRIE DUCKETT AND I, UH, TESTIFYING TODAY WITH THE ALLIANCE FOR MULTIFAMILY AND DEVELOPMENT, EXCUSE ME, PRODUCTION OR AMP. 
          AMP IS A COALITION OF DEVELOPERS IN TEXAS COMMITTED TO INCREASING THE PRODUCTION AND SUPPLY OF AFFORDABLE HOUSING HERE IN THE STATE. 
          DOMINION IS A FOUNDING MEMBER OF, UH, THE, UH, ALLIANCE AND I THAT IS WHERE I WORK. 
          UH, DOMINION IS A, WE NOW ARE DALLAS BASED DEVELOPER, OWNER AND MANAGER OF AFFORDABLE HOUSING APARTMENT COMMUNITIES WITH MORE THAN 7,400 UNITS HERE IN TEXAS ALONE. 
          I'M SURE THE COMMITTEE WILL BE PLEASED TO HEAR THAT I WILL NOT REPEAT THE EXCELLENT SUMMARIES PROVIDED BY DIRECTOR WILKINSON AND MR. IGA, BUT I WILL ADD ONE PIECE OF COLOR TO THEIR TESTIMONIES. 
          A 2018 STUDY BY FREDDIE MACK ESTIMATED A SHORTAGE OF MORE THAN 500,000 APARTMENT HOMES IN THE STATE, ESPEC IN, EXCUSE ME, NOT JUST APARTMENT HOMES, BUT OVERALL HOUSING UNITS WITH AN ESPECIALLY ACUTE CRISIS IN THE AMOUNT OF WORKFORCE HOUSING AND SENIOR HOUSING FOR TEXANS WITH THE LOWEST INCOMES IN 2022, AFFORDABLE HOUSING DEVELOPERS LIKE THE MINIUM, WORKED TO ADDRESS THE SHORTAGE BY SUBMITTING MORE THAN $6 BILLION IN APPLICATIONS FOR THE PRIVATE ACTIVITY BOND LOTTERY ADMINISTERED BY THE BOND REVIEW BOARD, YET FEWER THAN $2 BILLION IN BONDS WERE INITIALLY AVAILABLE FOR MULTIFAMILY DEVELOPMENT, MEANING THAT DEMAND FOR THESE BONDS, AS MS. HAW MENTIONED EARLIER, OUTPACE THEIR SUPPLY BY ABOUT THREE OR FOUR TO ONE. 
          SO WHEN WE TALK ABOUT TAX CREDIT DEVELOPMENTS, ONE BEING COMPETITIVE AND ONE BEING NON-COMPETITIVE, THERE'S HARDLY A DIFFERENCE THESE DAYS. 
          BUT THIS INCREDIBLE SHORTAGE OF HOMES, UH, MEANS, UH, HERE IN THE STATE LIKELY MEANS THAT THERE'S GOING TO BE A SUSTAINED DEMAND FOR THESE PRIVATE ACTIVITY BONDS, BUT TEXAS CAN MAKE ONE SIMPLE CHANGE TO HELP INCREASE THEIR SUPPLY AND MAXIMIZE THE USE OF THESE BONDS TO BENEFIT TEXAN SEEKING HOUSING DEVELOPMENTS USING BOND FINANCING INCLUDE OFTEN INCLUDE THE 4% LOW INCOME HOUSING TAX CREDIT, WHAT'S KNOWN AS A NON-COMPETITIVE OR 4% CREDIT. 
          AND FEDERAL LAW REQUIRES THAT THESE DEVELOPMENTS FINANCE AT LEAST 50% OF THEIR COST THROUGH PRIVATE ACTIVITY BONDS A REQUIREMENT WE CALL THE 50% TEST. 
          FOR EXAMPLE, IMAGINE A $10 MILLION DEVELOPMENT. 
          IF THIS DEVELOPMENT WANTED TO ACCESS THE 4% CREDIT, IT WOULD NEED TO USE AT LEAST $5 MILLION IN PRIVATE ACTIVITY BONDS. 
          BUT IF THE DEVELOPMENT WERE TO INCREASE ITS REQUEST TO SAY SIX OR $7 MILLION, THE AMOUNT OF 4% CREDITS IN THIS DEVELOPMENT WOULD STAY THE SAME. 
          I'M VERY FORTUNATE TO BE FOLLOWING MS. LA'S TESTIMONY, WHICH ACCIDENTLY DESCRIBED HOW BOND DEVELOPMENTS UTILIZE THE 4% CREDIT AND HOW THEY OPERATE, UH, IN HER CONVERSATION WITH REPRESENTATIVE GATES. 
          AND TRUE TO MR. WILTS PREDICTION, UH, THE FOLLOWING IS AMPS PROPOSAL TO IMPROVE THE PRIVATE ACTIVITY BOND PROGRAM. 
          [02:15:02]
AMP IS ASKING THE LEGISLATURE TO ENACT STATUTORY WHAT WE CALL, QUOTE UNQUOTE BOND EFFICIENCY. 
          BECAUSE AN ANALYSIS OF T-D-H-C-A DATA ESTIMATES THAT HAD BOND EFFICIENCY BEEN IN PLACE IN THE PAST TWO YEARS, PROGRAM YEARS 2020, AND 2021, TEXAS WOULD'VE CONSTRUCTED BETWEEN FIVE AND 7,000 ADDITIONAL APARTMENT HOMES, GENERATED NEARLY $1.8 BILLION IN ADDITIONAL CONSTRUCTION ACTIVITY, AND RECEIVED MORE THAN $500 MILLION IN ADDITIONAL 4% CREDITS. 
          I ALSO WANT TO TAKE THIS OPPORTUNITY TO THANK DIRECTOR WILKINSON AND HIS TEAM ON THEIR TRANSPARENCY WITH DEPARTMENT DATA ON THIS AND MANY OTHER ITEMS. THEY ARE BEST IN CLASS. 
          NUMEROUS STATES HAVE PROACTIVELY ENACTED BOND DEFICIENCY TO THEIR BOND PROGRAMS, TENNESSEE, GEORGIA, COLORADO, AND ALMOST A DOZEN OTHER STATES LIMIT THE USE OF PRIVATE ACTIVITY BONDS IN INDIVIDUAL DEVELOPMENTS SO THAT THE OVERALL POT OF BONDS CAN GROW AND WE CAN MAXIMIZE HOUSING PRODUCTION IN THE STATE. 
          THIS INCREASES THE AMOUNT OF DEVELOPMENTS THAT CAN ACCESS A 4% CREDIT. 
          AND I'M HAPPY TO DETAIL THIS A LITTLE MORE UPON FURTHER QUESTIONING FROM THE COMMITTEE. 
          ONCE AGAIN, AMP CALLS ON THE LEGISLATURE TO CONSIDER ENACTING BOND EFFICIENCY AND LIMIT DEVELOPMENTS SEEKING BONDS TO 55% OF THEIR PROJECT COSTS. 
          BOND EFFICIENCY IN TEXAS WOULD MEAN MORE CONSTRUCTION ACTIVITY, MORE FEDERAL RESOURCES, AND MOST IMPORTANTLY, MORE HOUSING SUPPLY FOR OUR STATE'S CRITICAL WORKFORCE. 
          THANK YOU, MR. CHAIR, AND I LOOK FORWARD TO ANY QUESTIONS YOU MAY HAVE. 
          THANK YOU, MEMBERS. 
          ANY QUESTIONS? THANK YOU, SIR. 
          THANK YOU. 
          THE CHAIR CALLS AMY PARHAM OF HABITAT FOR HUMANITY, TEXAS. 
          THANK YOU AND FOR, UH, FOR BEING HERE TODAY. 
          AND FOR THE RECORD, PLEASE STATE YOUR NAME AND WHO YOU'RE WITH. 
          MY NAME IS AMY LEDBETTER PARHAM. 
          I'M THE CEO OF HABITAT FOR HUMANITY TEXAS. 
          UM, THANK YOU SO MUCH FOR HAVING ME TODAY. 
          I WAS GONNA GIVE YOU A LOT OF STATISTICS, BUT YOU'VE HEARD A LOT OF STATISTICS, SO I WON'T KILL YOU DEATH BY STATISTICS. 
          UM, BUT LET ME JUST ECHO WHAT MY FELLOW, UH, BROTHERS AND SISTERS IN HOUSING HAVE DISCUSSED TODAY. 
          BECAUSE I HAVEN'T HEARD ANYTHING I'VE DISAGREED WITH. 
          I'LL TELL YOU THAT TO ECHO THE BUILDERS ASSOCIATION, THAT, UM, MINIMUM LOT SIZES AND DENSITY ARE KEY ISSUES TO AFFORDABILITY. 
          UM, THE, THE TROUBLE WITH HOW, HOW HOUSING PRICES PUSH DOWN PRESSURES AND BARRIERS TO THE LOWEST INCOME, IF WE HAVE HOUSING STRESSES AS WE DO AT $400,000 LEVEL, IT PUSHES DOWN, UM, ALL THE WAY TO THE LOWEST ECONOMIC LEVEL. 
          SO WE HAVE TO ADDRESS THE HOUSING, UM, UH, ISSUES AS A, AS A SPECTRUM, AS A CONTINUUM OF SERVICES THAT WE NEED TO, TO, TO HOUSE. 
          BUT I, I WANT OR HAVE, BUT I WANTED TO KIND OF SWITCH GEARS TO TELL YOU THAT, UM, I LEARNED TO BUILD HOUSES FROM MY GRANDPA. 
          AND MY GRANDPA WAS IN THE BATTLE OF THE BULGE. 
          HE WAS A, UH, AWARDED A BRONZE STAR, AND HE TOLD ME WHEN I WAS A LITTLE KID, YOU GET A COLLEGE EDUCATION, WHATEVER YOU DO, YOU GET A COLLEGE EDUCATION. 
          BECAUSE I DIDN'T HAVE THAT OPPORTUNITY. 
          AND IT WASN'T UNTIL YEARS LATER THAT I REALIZED THAT IT WAS BECAUSE OF THE GI BILL THAT HE GOT HIS FIRST HOUSE. 
          HE COULDN'T GO TO COLLEGE, BUT HE SENT MY DAD AND MY AUNT TO COLLEGE BECAUSE OF THE GI BILL. 
          THAT'S THE KIND OF, THAT'S THE KIND OF POWER THAT PUBLIC PRI PARTNERSHIPS CAN HAVE, THAT THEY CAN, THEY CAN LAUNCH GENERATIONS INTO, UM, THINGS THAT THEY NEVER, THEY NEVER REALIZED THAT THEY COULD HAVE FOR THEIR KIDS AND THEIR GRANDKIDS. 
          MOST OF PEOPLE IN THIS ROOM WOULD NOT UNDERSTAND WHAT IT WOULD MEAN TO LIVE IN HOUSING THAT WAS UNSTABLE. 
          UM, IT'S JUST SECOND NATURE TO US TO HAVE STABLE HOUSING. 
          AND WE DON'T REALIZE THAT WITHOUT THE STABILITY OF ESPECIALLY OF HOME OWNERSHIP, THAT YOU'RE MORE LIKELY TO GO TO COLLEGE. 
          YOU'RE MORE LIKELY TO, UH, GRADUATE FROM HIGH SCHOOL. 
          YOU'RE MORE LIKELY TO KNOW WHO YOUR, YOUR SCHOOL BOARD MEMBERS ARE. 
          YOU'RE MORE LIKELY TO REPORT, UM, SELF HAPPINESS, UH, HIGHER RATES OF HAPPINESS. 
          IF YOUR PARENTS OWN THEIR OWN HOMES, YOU'RE LESS LIKELY TO BE A TEEN PRE, UH, GET PREGNANT AS A TEENAGER WITH TEXAS TEEN PREGNANCY RATES. 
          IT JUST ACROSS THE BOARD, WE SEE IMPROVEMENT WITH, UM, HOME OWNERSHIP ACTIVITIES, AND ESPECIALLY THE, THE, THE LEVELS THAT HABITAT FOR HUMANITY SERVES, WHICH ARE 30 TO 60% OF AMERICAN A A MI. 
          I WILL TELL YOU THOUGH, THAT BECAUSE OF CONSTRUCTION COSTS, BECAUSE OF LAND COSTS MORE AND MORE, IT'S EXTREMELY DIFFICULT FOR HABITAT FOR HUMANITY TO BUILD ANY HOUSES. 
          PEOPLE OFTEN THINK THAT HABITAT HOUSES ARE FREE HOUSES. 
          THEY ARE NOT. 
          UM, OUR HOMEOWNERS PAY A MORTGAGE. 
          THEY PAY A MORTGAGE BASED ON WHAT THEY CAN AFFORD, BUT THEY PAY A MORTGAGE. 
          THEY, A LOT OF, ANOTHER MISCONCEPTION IS THAT WE DON'T, UM, NEED DONATIONS OR INCOME, UH, FUNDING BECAUSE WE HAVE VOLUNTEER LABOR, 
          [02:20:01]
BUT WE HAVE TO BUY TWO BY FOURS. 
          AND THE RISE IN CONSTRUCTION COSTS HAVE, HAVE MADE OUR COST VERY DIFFICULT. 
          WE USE SKILLED LABOR, AND THERE'S A HUGE SHORTAGE OF SKILLED LABOR BECAUSE BELIEVE IT OR NOT, A LOT OF OUR VOLUNTEERS LEARN GREAT BUILDING, BUT WE STILL DON'T WANT 'EM TO WIRE A HOUSE. 
          SO, ELECTRICIANS, PLUMBERS, HVAC FOLKS, UM, QUALITY ROOFERS, THOSE WERE CRITICAL, CRITICALLY IMPORTANT TO HOW WE BUILD OUR HOUSES, UM, ACROSS, ACROSS THE STATE OF TEXAS. 
          AND I'LL TELL YOU, I KNOW THIS IS URBAN AFFAIRS, BUT I HAVE THE PRIVILEGE AND HONOR OF WORKING FOR, UH, WITH AFFILIATES ACROSS TEXAS. 
          HABITAT AFFILIATES ACROSS TEXAS. 
          AND MOUNT PLEASANT HAS THE SAME ISSUES THAT HOUSTON AND SAN ANTONIO HAS DIFFERENT SCALE, BUT I GUARANTEE YOU THEY HAVE THE SAME PROBLEMS THAT, THAT WE SEE IN ANY MAJOR URBAN AREA IN TEXAS. 
          YOU'RE SEEING THAT IN LA GRANGE, YOU'RE SEEING THAT IN MIDLAND. 
          YOU'RE SEEING IT IN MOUNT PLEASANT. 
          SO I'M, I I CAN TALK TO YOU ABOUT, UH, THE TEXAS REAL ESTATE RESEARCH CENTER SAYS WE NEED TO BUILD 110,000 NEW SINGLE FAMILY UNITS PER YEAR. 
          I CAN TELL YOU THAT LENAR HOMES AND DR. HORTON, GOD BLESS 'EM, THEY'RE NOT BUILDING 'EM FOR, FOR HABITAT HOME LEVEL FOLKS, BECAUSE GUESS WHAT? THERE'S NOT A PROFIT IN IT. 
          UM, I CAN ATTEST TO, THERE'S NOT A PROFIT IN IT. 
          UM, BUT, BUT GOING BACK TO MY GRANDPA, HAVING THAT PUBLIC-PRIVATE PARTNERSHIP IS, IS THE KEY TO HOW WE CAN REALLY MAKE A DIFFERENCE IN OUR, IN OUR STATE, IN OUR COMMUNITIES. 
          AND I JUST WANNA CHALLENGE YOU TO THINK BIG, THINK CREATIVELY. 
          UM, WE NEED YOUR HELP. 
          UM, AND, AND YOU NEED OUR HELP. 
          AND I DO THINK THAT TOGETHER, THAT WE CAN DO THIS. 
          SO, UH, IF YOU WANT STATISTICS, I'LL GIVE YOU STATISTICS. 
          I DO WANNA THANK BOBBY, UM, AND HIS TEAM AT T-D-H-C-A. 
          THERE'S SOME TWEAKS THAT WE NEED TO WORK ON AROUND THE BOOTSTRAP. 
          HE'S WELL AWARE OF IT, UM, JUST TO MAKE THINGS, UH, CONTINUE TO IMPROVE. 
          BUT, BUT WE CAN DO THIS TOGETHER, BUT WE DO NEED TO HAVE YOU WITH US. 
          THANK YOU, AMY. 
          YOU'RE WELCOME. 
          FOR YOUR TESTIMONY MEMBERS, ANY QUESTIONS FOR HABITAT FOR HUMANITY? SOME MORE STATISTICS? COME ON. 
          YOU HAVE A POWERPOINT? WE WOULD LOVE TO SEE IT. 
          I DO. 
          I WILL SEND YOU A POWERPOINT. 
          IT'S GOT STATISTICS ON IT. 
          YOU CAN EMAIL IT TO US. 
          OKAY. 
          . 
          THANK YOU. 
          THANK YOU. 
          UH, HELLO CRAIG. 
          HOW ARE YOU, SIR? DOING WELL, CRAIG. 
          CRAIG CHICK, UH, I'M A BOARD MEMBER WITH HABITAT FOR HUMANITY. 
          AMY AND I WORK TOGETHER AND WE'VE COME UP WITH A PROPOSAL WE'D LIKE TO KIND OF HIGHLIGHT FOR YOU TODAY. 
          WE'VE, UH, INCLUDED A ONE PAGE, ARE YOU SPEAKING ON BEHALF OF HABITAT THEN? TODAY? YES, SIR. 
          OKAY. 
          AS A, I'M, I'M A BOARD MEMBER FOR HABITAT FOR HUMANITY OF TEXAS, THE STATEWIDE ORGANIZATION. 
          SO WE'VE PUT TOGETHER A PLAN TO HELP ADDRESS SOME OF THE STUFF THAT AMY'S TALKED ABOUT TODAY. 
          AND WHAT WE'RE ASKING THE LEGISLATURE TO DO IS, UH, TRY TO FUND A $25 MILLION REVOLVING FUND THAT WOULD BE MANAGED BY T-D-H-C-A TO ALLOW ORGANIZATIONS LIKE HABITAT TO TAKE CAPITAL WHERE THEY CAN, WHERE RIGHT NOW THEY'RE GOING AFTER KIND OF SINGLE LOT SIZE TYPE PROJECTS TO GO AFTER LARGER TYPE PROJECTS WHERE A BANK DOES NOT UNDERSTAND A NONPROFIT'S P AND L, THEY DEFINITELY DON'T UNDERSTAND HABITAT'S P AND L BECAUSE A LOT OF OUR LABOR IS DONATED. 
          A LOT OF OUR, OUR, UH, BUILDING, UH, MATERIALS ARE DONATED. 
          AND SO A REVOLVING FUND WOULD ENABLE THIS ORGANIZATION AND THE STATE TO PARTNER TOGETHER, UH, TO BUILD LARGER DEVELOPMENT PROJECTS. 
          THERE'S A GREAT EXAMPLE GOING ON RIGHT NOW IN THE CITY OF HOUSTON CALLED ROBINS LANDING. 
          IT'S IN, UH, SANNIA THOMPSON'S DISTRICT. 
          AND OVER TIME, THAT PROJECT WILL DEVELOP ABOUT 400 HOMES. 
          UH, THAT'S SOMETHING THAT'S BEEN GOING ON FOR OVER THREE YEARS. 
          IT'S A LONG-TERM PROJECT. 
          IT'S TAKING A LONG TIME, BUT THEY'RE GETTING READY TO START TURNING DIRT HERE IN THE NEXT COUPLE OF MONTHS. 
          THOSE ARE THE TYPES OF PROJECTS THAT SMALL HABITAT AFFILIATES CANNOT GO AFTER BECAUSE THEY DON'T HAVE THAT TYPE OF CAPITAL TO GO OUT AND DO THAT IN THAT INFRASTRUCTURE TYPE DEVELOPMENT. 
          THEY HAVE THE TYPE OF MANPOWER TO GO BUY A LOT OR MAYBE TWO LOTS TOGETHER, BUT THEY DON'T HAVE SOME, THE, THE TYPE OF CAPITAL TO GO OUT AND SAY, BUY A PIECE OF PROPERTY THAT WILL ENABLE A 20 TO 50 TO EVEN A HUNDRED HOUSING DEVELOPMENT. 
          THIS WOULD ENABLE THE STATE TO GO OUT AND, AND DOUBLE THE AMOUNT OF HOUSING STOCK THAT THEY'RE BUILDING RIGHT NOW. 
          CURRENTLY, HABITAT IS THE LARGEST NONPROFIT BUILDER IN THE STATE OF TEXAS. 
          THAT'S ALSO THE CASE NATIONALLY AS AN ORGANIZATION. 
          CURRENTLY, WE BUILD ABOUT 300 HOUSES. 
          WE'RE MODELING THIS PROGRAM AFTER, AFTER A VERY SIMILAR PROGRAM IN MINNESOTA. 
          THEY HAVE A $15 MILLION REVOLVING FUND. 
          IT'S BEEN IN PLACE FOR OVER 20 YEARS, AND CURRENTLY MINNESOTA IS BUILDING ABOUT 150 HOUSES JUST ON THAT $15 MILLION FUND. 
          WE'RE TRYING TO, TO CREATE THE SAME THING HERE IN TEXAS, WOULD ENABLE US TO CAPTURE 
          [02:25:01]
THAT CAPITAL AND GO OUT AND REALLY TRY TO TACKLE THIS, THIS AFFORDABLE WORKFORCE HOUSING SPACE THAT REALLY NOBODY ELSE IS BUILDING IN. 
          BUT HABITAT, WE WANNA ALSO COUPLE THAT WITH A JOB TRAINING PROGRAM, HOUSTON, ALONG WITH HOUSTON COMMUNITY COLLEGE. 
          THE HOUSTON CHAPTER OF HABITAT IS ALSO TRAINING SOME OF THESE SKILLED CONSTRUCTION TRADES AT THE SAME TIME, NOT USING A LAB AT HOUSTON COMMUNITY COLLEGE, BUT USING THE HOUSE AS THE LAB. 
          AND SO THIS WILL ENABLE US TO KIND OF TACKLE TWO OF THESE PROBLEMS, CREATE MORE WORKFORCE OUT THERE TO TACKLE HOUSING. 
          WE'RE NOT TALKING ABOUT TRAINED PLUMBERS AND ELECTRICIANS, BUT CARPENTRY, UH, SHEET ROCK, UH, FRAMING, THINGS LIKE THAT, THAT ARE MORE BASIC CONSTRUCTION, UH, TRADES. 
          UM, WE THINK THAT THIS PROGRAM WORKS. 
          UH, THERE'S A COUPLE OF AFFILIATES THAT ARE USING, I MENTIONED HOUSTON ALREADY, BUT TEMPLE IS DOING SOME STUFF IN THIS ARENA AS WELL, USING THEIR, THEIR PARTNERSHIP WITH THE LOCAL COMMUNITY COLLEGE. 
          WE THINK THAT WE CAN ACTUALLY GO OUT THERE AND MAKE A HUGE DIFFERENCE IN PEOPLE'S LIVES AND, AND BUILD IN THIS SPACE WHERE THERE'S SO MUCH NEED. 
          AND A $25 MILLION REVOLVING FUND THAT UTILIZES STATE RESOURCES IN AN EVERGREEN FASHION IS THE MOST EFFECTIVE WAY TO DO THAT. 
          IF YOU HAVE ANY QUESTIONS, WE'D BE HAPPY TO ANSWER 'EM. 
          THANK YOU, CRAIG, FOR BEING HERE TODAY AND PROVIDING TESTIMONY MEMBERS ANY QUESTIONS. 
          THANK YOU FOR ALL YOUR EFFORTS. 
          THANK YOU. 
          AND HABITAT IS APPRECIATE. 
          IT IS ONE OF OUR BIGGEST COMMUNITY PARTNERS THERE IN SAN ANTONIO. 
          WHEN I WAS ON CITY COUNCIL, WE DID MANY RIBBON CUTTINGS. 
          WE DID MANY, UH, SH SHOVEL TURNINGS, UH, TO, TO COMMEMORATE THE BEGINNING OF A NEW PROJECT FOR HABITAT. 
          SO THANK YOU FOR EVERYTHING YOU DO. 
          Y'ALL SEE ME WORK ON VARIOUS ISSUES AROUND THE CAPITOL, AND THIS IS SOMETHING THAT'S VERY PERSONAL TO ME, AND IT'S SOMETHING I DO IN A VOLUNTEER ASPECT, AND I'M VERY HONORED TO BE A PART OF HABITAT'S, UH, BOARD. 
          THANK YOU. 
          EXCELLENT. 
          PLEASE CONTINUE YOUR GREAT WORK. 
          THANK YOU. 
          THANK Y'ALL FOR BEING HERE. 
          YOU KNOW, SAN ANTONIO WAS THE VERY FIRST HABITAT, RIGHT? THE VERY FIRST HABITAT. 
          I DIDN'T KNOW THAT. 
          REPRESENTATIVE CAMPOS, DID YOU KNOW THAT? OKAY. 
          SHE'S A, SHE AND GARY ARE, ARE, ARE HOUSING EXPERTS HERE, SO THEY MIGHT KNOW THAT. 
          YEAH. 
          THANK YOU. 
          THANK YOU. 
          IS THERE ANYONE ELSE WHO WISHES TO TESTIFY ON THIS CHARGE? DID YOU, UH, PLEASE. 
          REPRESENTATIVE SLAYTON, YOU HAVE THE FLOOR. 
          I WAS JUST GONNA, UH, MENTION SOME THINGS. 
          UM, SO HOW MY UNDERSTANDING, I MET A MAN THAT WAS INVOLVED WITH PUBLIC PRIVATE PARTNERSHIPS WHEN THEY BEGAN IN THE EARLY 1980S. 
          AND THE WAY IT BEGAN, UM, IT WAS A 90 10 RELATIONSHIP BASICALLY, WHERE PRIVATE COMPANIES WERE DOING 90% OF THE FUNDING OF THE, THE PLAN. 
          AND THE GOVERNMENT WAS DOING 10% IN SPACE PROGRAM TYPE THINGS. 
          AND SO THAT'S OF COURSE DIFFERENT THAN HOUSING. 
          I WAS JUST KIND OF WANT TO POINT OUT JUST HOW PUBLIC-PRIVATE PARTNERSHIPS HAVE CHANGED. 
          AND, UM, ALSO, UM, SINCE IT BEGAN, THE, THE RATIO OF, OF WHO'S INVESTING IS JUST, I'M JUST POINTING THAT OUT. 
          AND THE OTHER, THE OTHER CONCERN I, I HAVE WITH PUBLIC PRIVATE PARTNERSHIPS IS, UM, PUBLIC INFORMATION REQUESTS. 
          WHEN YOU GET A PUBLIC PRIVATE PARTNERSHIP, WHETHER, DOESN'T MATTER WHAT IT'S WITH, UM, THERE'S INFORMATION NOT AVAILABLE TO THE PUBLIC. 
          BUT IN THESE CASES, YOU KNOW, WE, WE COULD SEE SOMETHING USING GOVERNMENT FUNDING UP TO 60%, 70%. 
          AND I JUST WANT TO POINT OUT THAT CONCERN. 
          BUT I ALSO WANT TO POINT OUT, THERE ABSOLUTELY IS A HOUSING PROBLEM NO MATTER WHERE YOU ARE IN TEXAS. 
          IN FACT, ONE OF THE MOST INTERESTING THINGS I SEE HAPPENING IS, UH, I'M SURE IT'S HAPPENING EVERYWHERE I'VE HEARD IT IS, BUT OUT WHERE I'M AT, WE HAVE PEOPLE WHO ARE SELLING THEIR HOME RIGHT NOW. 
          'CAUSE THEY THINK THEY CAN MAKE A WHOLE LOT OF MONEY, AND THEY DO. 
          AND THEY DECIDE TO MOVE INTO AN RV. 
          AND ALL THE RV, UH, LOTS OUT IN MY AREA ARE CRAMP PACK FULL. 
          AND MOST OF THOSE RVS WERE NOT MEANT TO BE LIVED IN EVERY DAY. 
          THE ONE STORY I HEARD, A FAMILY FRIEND OF THE FAMILY IN TARRANT COUNTY HAD, UH, SOLD THEIR HOME, MADE GR GREAT MONEY ON THAT, MOVED INTO A CAMPER WITH TWO HIGH SCHOOL STUDENTS THAT LASTED THREE MONTHS. 
          THEY COULD NOT AFFORD TO GET BACK INTO A HOME WITH A BACKYARD AND ALL THAT. 
          AND THEY'RE NOW LIVING IN AN APARTMENT AS THE KIDS FINISH OUT THEIR LAST FEW YEARS OF HIGH SCHOOL. 
          SO WE DO HAVE A HOUSING PROBLEM, AFFORDABILITY PROBLEM. 
          UM, AND I JUST WANTED TO, TO SHARE THAT WITH YOU. 
          AGREE WITH YOU ALL OF YOUR POINTS. 
          REPRESENTATIVE SLAYTON, THANK YOU FOR THAT. 
          MEMBERS, ANY OTHER COMMENTS ON THIS INTERIM CHARGE? IS THERE ANYONE ELSE WHO WISHES TO TESTIFY ON THIS CHARGE, IF NOT MEMBERS? THAT CONCLUDES OUR WITNESSES ON THIS FIRST CHARGE. 
          I WANT TO THANK EVERYONE THAT CAME OUT TODAY THAT SAT THROUGH THE MEETING AND WAITED TO PROVIDE THIS IMPORTANT TESTIMONY TO 
          [02:30:01]
EACH OF THE MEMBERS UP HERE. 
          WE ARE GOING TO UTILIZE ALL YOUR STATISTICS, ALL YOUR DATA, UH, TO FORMULATE GOOD LEGISLATION, GOOD PUBLIC POLICY FOR THE 88TH LEGISLATIVE SESSION. 
          AND SO THE INPUT YOU GAVE TODAY WILL BE TAKEN AND USED IN THE VERY NEAR FUTURE, SPECIFICALLY IN JANUARY OF 2023. 
          SO THANK YOU ALL, AND THANK YOU FOR DOING WHAT YOU'RE DOING TO ENSURE OUR WORKFORCE HAS, UM, EXCELLENT HOUSING OPPORTUNITIES, UH, MEMBERS, I, I WAS, UM, UH, FORTUNATE THAT, UM, A, A GOOD FRIEND OF OURS FROM BEXAR COUNTY, UH, WAS ABLE TO COME OUT TODAY. 
          UM, OUR SHERIFF IS HERE, SHERIFF JAVIER ALAD. 
          SHERIFF, YOU CAN COME ON UP PLEASE. 
          MEMBERS. 
          UM, AS YOU KNOW, AND AS I'VE HEARD, UM, QUITE FREQUENTLY, WHETHER IT'S IN NEIGHBORHOOD ASSOCIATION MEETINGS OR, UM, GOING OUT TO TOWN HALL MEETINGS, PUBLIC SAFETY IS ALWAYS A TOP CONCERN IN OUR COMMUNITIES IN URBAN, UH, HEAVY POPULATED AREAS SUCH AS HARRIS COUNTY, BEXAR COUNTY, DALLAS COUNTY, UH, TRAVIS COUNTY. 
          AND EVERY NEIGHBORHOOD MEETING I GO TO, PUBLIC SAFETY IS BROUGHT UP AS A TOP ISSUE THAT THEY WOULD LIKE US TO ADDRESS. 
          SO I ASKED OUR SHERIFF IF HE CAN COME AND PROVIDE AN UPDATE ON SOME OF OUR, UH, PUBLIC SAFETY, UH, INITIATIVES OR PO POTENTIAL PUBLIC POLICIES THAT WE CAN LOOK AT, UH, FOR THE NEXT LEGISLATIVE SESSION. 
          AND HE WAS KIND ENOUGH TO, TO DRIVE ALL THE WAY HERE OVER HERE FROM BEAR COUNTY AND SAN ANTONIO SPECIFICALLY. 
          SHERIFF, IT'S AN HONOR TO HAVE YOU HERE TODAY. 
          I KNOW MYSELF AND REPRESENTATIVE LIZ CAMPOS, OR FRIENDS OF VIEWERS, SUPPORTERS, AND, UM, WE WOULD LOVE TO HEAR YOUR TESTIMONY SO YOU HAVE THE FLOOR ON WHAT WE CAN, WHAT WE CAN BE DOING TO ADDRESS PUBLIC SAFETY IN URBAN AREAS. 
          THANK YOU SO MUCH, SIR. 
          AND THANK Y'ALL FOR, FOR HAVING ME HERE TODAY. 
          UM, I WOULD LIKE TO PRESENT THREE ITEMS, UH, TWO OF WHICH ARE PRETTY CLOSELY RELATED, AND, AND ONE OF WHICH, UH, HAS NOTHING TO DO WITH THE OTHER TWO OTHER THAN, UH, IT IS A, A MAJOR CONCERN TO LAW ENFORCEMENT. 
          UH, I THINK IF YOU ASK ANY, UH, LAW ENFORCEMENT LEADER OF A, OF A MAJOR URBAN AGENCY, UH, CERTAINLY IN THE STATE OF TEXAS, WHAT OUR TOP FIVE STRESSORS ARE, WHAT ARE THE TOP FIVE ISSUES FACING US TODAY IN LAW ENFORCEMENT? UH, THREE. 
          THESE THREE WILL UNDOUBTEDLY BE WITHIN THE TOP FIVE OF MOST, UH, THE FIRST BEING, THE, THE PRE THE, THE PRESENCE OF MORE GUNS IN THE HANDS OF FOLKS THAT ABSOLUTELY SHOULD NOT BE IN POSSESSION OF GUNS, UH, BEING USED AGAINST, UH, PRIVATE CITIZENS AND AGAINST LAW ENFORCEMENT IN, IN RISING NUMBERS. 
          AND THEN, UH, THE OTHER TWO, UH, AND THREE, RESPECTIVELY BEING, UH, A PRETTY CLOSE ONE AND TWO TO EACH OTHER, UH, RECRUITMENT AND RETENTION OF, UH, QUALIFIED, UH, FOLKS TO SERVE AS LAW ENFORCEMENT OFFICERS, JAILERS AND, UH, DISPATCHERS WITHIN OUR PROFESSION. 
          SO WITH YOUR PERMISSION, I'D LIKE TO, I'D LIKE TO PRESENT THE FIRST ITEM AND THEN OPEN IT UP TO WHATEVER QUESTIONS BEFORE PRESENTING ITEMS NUMBER TWO AND THREE, IF THAT'S OKAY. 
          GO AHEAD, SHERIFF. 
          UM, WITH REGARD TO THE FIRST ITEM, I, I WOULD PROPOSE, UH, AT LEAST FOR DISCUSSION PURPOSES, THAT WE MAKE THE CONSIDERATION, UH, TO CLASSIFY CERTAIN BURGLARIES OF VEHICLES AS, AS FELONIES IN, IN THE MID NINETIES, THERE WAS A CHANGE MADE TO THE OFFENSE BURGLARY VEHICLE THAT MADE IT A MISDEMEANOR. 
          AND WHAT WE ARE SEEING NOW IS A, A PRETTY DISTURBING TREND, WHAT WE'VE SEEN IN SAN ANTONIO, BUT, BUT I'VE SEEN NATIONAL MEDIA WHERE IT HAS ACTUALLY, UH, BEEN RECOGNIZED AS A NATIONAL PROBLEM IS THAT, UH, WITH OBVIOUSLY WITH MORE LEGAL GUNS BEING OUT ON THE STREET, MANY OF THOSE GUNS ARE BEING TAKEN FROM LAWFUL GUN OWNERS THROUGH BURGLARIES OF VEHICLES. 
          UH, WE ARE, WE HAVE SEEN SOME PRETTY DISTURBING AND PRETTY, UM, OUTRAGEOUS CASES IN BEXAR COUNTY WHERE NOT ONLY ARE THEY GOING, ARE RINGS OF BURGLARS GOING INTO, INTO NEIGHBORHOODS CLEANING OUT 10, 20, 30 VEHICLES IN A NIGHT, UH, BUT LITERALLY STEALING GUNS FROM THOSE VEHICLES AND THEN CARRYING THOSE GUNS OPENLY IN THEIR HAND AS THEY GO ABOUT CONTINUING, UH, THEIR CRIME. 
          SP CRIME SPREE OF BURGLARIZING VEHICLES, MANY TIMES, BELIEVE IT OR NOT, THEY'RE, THEY'RE TARGETING NOTHING MORE THAN, THAN UNLOCKED CARS. 
          BUT EVEN SO, THEY'RE LEAVING THESE NEIGHBORHOODS WITH, YOU KNOW, FIVE ANYWHERE FROM 5, 10, 15 GUNS IN ONE, UH, CRIME SPREE. 
          UH, AND MANY TIMES THOSE GUNS ARE BEING USED, UH, AGAINST FIRST RESPONDERS. 
          I CAN TELL YOU, JUST ANECDOTALLY SPEAKING, UH, OF THE PAST THREE TO FOUR, UH, INVOLVED SHOOTINGS INVOLVING MY DEPUTIES, IT'S BEEN WITH GUNS THAT WERE STOLEN SOMETIMES EVEN WITHIN HOURS OF, OF BEING TURNED ON LAW ENFORCEMENT. 
          UH, NOW IF, IF THAT WERE NOT BAD ENOUGH, HERE'S, HERE'S SOMETHING THAT REALLY DOES, UH, KEEP US UP AT NIGHT AS LAW ENFORCEMENT LEADERS. 
          MY MY FEAR IS THAT, YOU KNOW, MANY TIMES YOU SEE THESE, THESE FOLKS WALKING THROUGH A NEIGHBORHOOD COMMITTING BURGLARIES, HOLDING A GUN IN THEIR HAND. 
          WE'VE ACTUALLY SEEN INSTANCES 
          [02:35:01]
WHERE THEY'RE CARRYING AN ASSAULT STYLE RIFLE, AN AK 47 STYLE RIFLE STOLEN DURING THE COURSE OF, OF A BURGLARY, UH, AND BURGLARIZING CARS AT THREE, FOUR IN THE MORNING. 
          NOW, IT'S NOT UNCOMMON, AS YOU ALL KNOW, HAVING COME FROM A BLUE COLLAR FAMILY MYSELF, AS, AS, AS MANY OF Y'ALL ALSO, UH, CAME FROM A BLUE COLLAR FAMILY, IT'S NOT UNCOMMON FOR FOLKS TO BE LEAVING FOR WORK AT THREE, FOUR O'CLOCK IN THE MORNING. 
          MY FEAR IS THAT ONE OF THESE FOLKS GOING OUT MINDING THEIR OWN BUSINESS, GOING OUT TO THEIR CAR AT FOUR IN THE MORNING, OR TAKING THE DOG OUT TO, TO USE THE RESTROOM IN THE, IN THE FRONT YARD, UH, MAY INADVERTENTLY STUMBLE UPON ONE OF THESE CAR BURGLARS BRANDISHING, UH, A PISTOL OR EVEN A RIFLE IN SOME INSTANCES THAT THEY'VE JUST STOLEN. 
          AND BAD THINGS ARE GOING TO HAPPEN FOR THAT HOMEOWNER THROUGH NO FAULT OF THEIR OWN. 
          SO I WOULD, I WOULD LIKE TO PROPOSE THAT, THAT FOR CONSIDERATION, UH, THAT WE ENHANCE CERTAIN TYPES OF CAR BURGLARIES, UH, TO THE FELONY LEVEL, UH, NAME, NAMELY IN THE EVENT THAT A WEAPON IS CARRIED DURING THE COMMISSION OF THE OFFENSE, UH, IN THE EVENT THAT A WEAPON IS STOLEN FROM A VEHICLE DURING THE COURSE OF A BURGLARY. 
          NOW, I, I I, I SHOULD NOTE THOUGH, THAT CURRENTLY THE THEFT STATUTE IN THE STATE OF TEXAS DOES ALLOW FOR FELONY CHARGES IN THE EVENT OF THE, THAT A GUN IS STOLEN. 
          BUT THIS WOULD BE IN, IN THE, IN THE, UH, BURGLARY VEHICLE STATUTE. 
          UH, ALSO, ONE OF THE COMMON TRENDS THAT WE'RE SEEING IN, IN THESE, UH, CAR BURGLARY, UH, SPREES, IS THAT THEY'RE USING STOLEN CARS, UH, TO FACILITATE THEIR, THEIR, UH, CRIME SPREE. 
          UH, THE TYPICAL SCENARIO IS THAT A STOLEN CAR WILL PARK AT THE END OF THE STREET. 
          THREE, FOUR OR FIVE PEOPLE WILL JUMP OUT, AND THEY WILL JUST LITERALLY WALK DOWN THE MIDDLE OF THE STREET TRYING CAR, UH, DOOR HANDLES. 
          UH, IF THE CAR IS UNLOCKED, THEY WILL BURGLARIZE IT. 
          UM, AND AGAIN, THEY'RE UP TO THEIR, UP TO THEIR NECK AND GUNS BY THE TIME THAT THEY'VE FINISHED THEIR, THEIR CRIME SPREE. 
          UH, IF THE CAR, IF THE KEYS ARE IN THE CAR, WHICH DOES HAPPEN MORE, MORE TIMES THAN NOT, UH, THEY'LL STEAL THE CAR WITH WHATEVER CONTENTS ARE IN IT, GUNS AND OTHERWISE. 
          SO I WOULD ALSO, UH, MOVE THAT A STOLEN VEHICLE, ANY, ANY, UH, CAR BURGLARY WHERE A STOLEN VEHICLE IS USED TO FACILITATE WOULD ALSO BE CLASSIFIED A FELONY. 
          AND THEN LASTLY, UH, WHERE IT CAN BE PROVEN THAT TWO OR MORE VEHICLES WERE BURGLARIZED PURSUANT TO COMMON ACTORS IN THE SAME CRIMINAL EPISODE, WE CONSIDER MAKING THAT A FELONY LEVEL OFFENSE AS WELL. 
          UH, SO I WILL OPEN IT UP TO WHATEVER QUESTIONS YOU ALL MIGHT HAVE FOR ME. 
          OKAY. 
          THANK YOU FOR THAT. 
          I HADN'T THOUGHT ABOUT SOME OF THESE THINGS YOU'VE TALKED ABOUT MEMBERS. 
          ANY QUESTIONS FOR THE SHERIFF ON THIS? A POTENTIAL PUBLIC POLICY? OKAY, SHERIFF, IF YOU SAID YOU HAD A, ANOTHER, A COUPLE OF THEM. 
          THANK YOU. 
          YES, SIR. 
          THE, THE OTHER TWO ARE, ARE A LITTLE MORE CLOSELY RELATED TO EACH OTHER. 
          UM, OTHER SPEAKERS ON, ON DIFFERENT TOPICS THIS MORNING HAVE, HAVE ALLUDED TO THE FACT THAT EVERYBODY'S HAVING MANPOWER ISSUES. 
          NOW WE KNOW THAT RESTAURANT INDUSTRIES HAVING MANPOWER ISSUES. 
          WE, WE KNOW THAT OBVIOUSLY LAW ENFORCEMENT IS NO STRANGER TO THESE SAME MANPOWER ISSUES. 
          UH, THE, THE, THE, THE, WHAT MAKES US EXCEPTIONAL IN THAT, IN THAT ASPECT THOUGH, IS IF YOU KNOW, IN THE FOOD INDUSTRY, UH, NOT TO, NOT TO SAY THAT WHAT THEY DO IS NOT IMPORTANT, BUT OUR, OUR FOOD MAY GET TO US A LITTLE LATER IF THERE'S NOT ENOUGH WAIT STAFF OR KITCHEN STAFF WITH REGARD TO LAW ENFORCEMENT, IF WE'RE UNDERSTAFFED, THAT COULD BE PROBLEMATIC FOR YOU, ME, FOR ALL OF US. 
          AND SO RIGHT NOW, AS WE SPEAK, LAW ENFORCEMENT AGENCIES, LIKE THE SHERIFF SAW THE BEXAR COUNTY SHERIFF'S OFFICE AND OTHERS ARE GOING TO OTHER STATES, GOING TO EVEN, EVEN, UH, PUERTO RICO, THE PHILIPPINES, IN EFFORTS TO TRY TO RECRUIT THE BEST OF THE BEST. 
          WE'RE STILL TRYING TO BE, UM, PICKY IN WHO GETS IN FOR OBVIOUS REASONS. 
          WE CAN'T JUST LET ANYBODY INTO THE, INTO THE LAW ENFORCEMENT PROFESSION. 
          SO WE'RE STILL TRYING TO MAINTAIN A, AT AT LEAST A, A, A MID TO HIGH LEVEL STANDARD WHILE STILL TRYING TO ATTRACT SOME OF THE MORE QUALIFIED APPLICANTS. 
          NOW, OBVIOUSLY WITH US IN LAW ENFORCEMENT, THE GOAL IS TO BE REFLECTIVE OF THE COMMUNITY WE SERVE. 
          WE WANNA LOOK LIKE THE COMMUNITY THAT WE SERVE. 
          SO AS CLOSE TO HOME AS WE CAN GET IN RECRUITMENT PURPOSES, TO, TO BE RECRUITING, UH, LOCAL RESIDENTS TO THE EXTENT POSSIBLE, UH, YOU KNOW, WE'RE, WE'RE, WE'RE CERTAINLY DOING THAT, BEING MILITARY CITY, USA, I CAN CERTAINLY THINK OF A, OF A LARGE CONTINGENT OF APPLICANTS THAT, THAT WE ARE, ARE CONSTANTLY TARGETING, TRYING TO GET IN. 
          BUT THEN THE ALSO, THERE'S A, THERE'S A SUBSET OF THOSE SAME MILITARY, UH, FOLKS THAT WE CAN'T TOUCH. 
          AND REASON BEING IS BECAUSE AT PRESENT, THE STATE OF TEXAS BY T COLE RULES, YOU CANNOT GET A, UH, T COLE LICENSE OF ANY KIND, UH, UNLESS YOU'RE A NATURALIZED US CITIZEN. 
          UH, WE ARE, I WOULD PROPOSE FOR, FOR DISCUSSION PURPOSES, UH, SOMETHING ALONG THE LINES OF WHAT WAS PROPOSED, UH, BY, BY THEN HOUSTON POLICE, CHIEF ART ACEVEDO AND OTHERS IN 2018, UH, AN ITEM THAT MADE IT, UH, INTO THE, INTO THE, UH, COMMITTEE STAGE, BUT, BUT DIED SOMEWHERE ALONG THE WAY. 
          UH, I WOULD PROPOSE THAT WE CONSIDER, UH, ALLOWING T COLE TO ISSUE A LICENSE, 
          [02:40:01]
UH, NOT JUST FOR PEACE OFFICER LICENSES, BUT ALSO FOR JAILER LICENSES AND TELECOMMUNICATOR OFFICER LICENSES, DISPATCH LICENSES TO ANY LEGAL PERMANENT RESIDENTS WHO HAVE SERVED IN THE UNITED STATES MILITARY HONORABLY AND HAVE COMPLETED THAT, THAT SERVICE TO THEIR COUNTRY. 
          UH, I WOULD SAY THAT IT WOULD, IT WOULD CERTAINLY OPEN UP, CERTAINLY IN SAN ANTONIO BEING MILITARY CITY USA, IT WOULD OPEN US UP TO, TO PROBABLY HUNDREDS, IF NOT THOUSANDS OF OTHER POTENTIAL, UH, APPLICANTS THAT WE COULD THEN GO IN AND, AND RECRUIT. 
          UH, TO ME IT'S A NO-BRAINER TO HIRE, UH, MILITARY VETERANS. 
          UH, THEY, THEY COME ALREADY PREPARED FOR KNOWING WHAT TO EXPECT AS FAR AS A LIFETIME OF SERVICE. 
          MANY OF THEM ALREADY HAVE THE TRAINING AND THE DISCIPLINE THAT WE'RE, THAT WE'RE LOOKING FOR. 
          IT'S JUST IN SOME OF THESE INSTANCES, UH, THESE FOLKS LACK THAT, THAT ALL TOO IMPORTANT PIECE OF PAPER THAT, THAT, THAT GRANTS THEM US CITIZENSHIP. 
          RIGHT. 
          SO I WOULD ASK THAT WE CONSIDER, UH, THOSE LEGAL PERMANENT RESIDENTS THAT HAVE SERVED HONORABLY IN THE MILITARY FOR THESE LICENSES, THOSE THAT HAVE SERVED HONORABLY IN THE MILITARY DISCHARGE HONORABLY DISCHARGED. 
          YES, SIR. 
          AND, UH, AND HAVE YOU SEEN THIS ENACTED IN OTHER, UM, STATES OR YOU SAID THIS WAS PROPOSED BEFORE, THOUGH, RIGHT? IT WAS PROPOSED HERE IN TEXAS BEFORE, AND IT, IT FAILED TO GAIN TRACTION PAST A CERTAIN POINT, BUT WE DO KNOW THAT THERE ARE OTHER STATES THAT, THAT DO EMPLOY IT. 
          OKAY. 
          UM, WE COULD CERTAINLY SEND THAT TO YOU IN THE BACKGROUND MATERIAL. 
          WE'RE GONNA BE EMAILING OUT TO EACH AND EVERY ONE OF YOU LATER TODAY. 
          UM, THERE IS SOME SUPPORTING DOCUMENTATION IN THERE THAT, THAT SHOWS SOME OF THE OTHER STATES THAT HAVE DONE IT. 
          UH, AND I, IF I'M NOT MISTAKEN, THE, THE US GOVERNMENT ALSO ALLOWS IT TO A CERTAIN EXTENT. 
          BUT JUST AS FAR AS, AS FAR AS HERE, I DON'T BELIEVE THERE'S ANY LAW PROHIBITING IT. 
          IT'S JUST A T COLE, UH, MANDATE THAT PROHIBITS IT. 
          OKAY. 
          MEMBERS, ANY QUESTIONS ON THIS POTENTIAL PUBLIC POLICY PROPOSAL? OKAY. 
          OKAY. 
          THANK YOU, SHERIFF. 
          AND YOU'RE, YOU SAID YOU HAD ONE MORE? YES, SIR. 
          AND THEN THE THIRD IS, IS A LITTLE MORE CLOSELY RELATED TO THE SECOND, UH, AT PRESENT, BELIEVE IT'S IN THE EDUCATION CODE. 
          THERE IS AN ALLOWANCE FOR, UH, STATE PEACE OFFICERS TO GET FREE TUITION AT, UH, STATE UNIVERSITIES IF THEY'RE PURSUING A JOB RELATED DEGREE, MEANING A CRIMINAL JUSTICE DEGREE, UH, AT PRESENT, THAT THAT IS ONLY AVAILABLE TO PEACE TEXAS PEACE OFFICERS AS FAR AS WE CAN FIND. 
          I WOULD AGAIN, PROPOSE THAT WE EXPAND THAT TO ANYONE HOLDING A TEXAS JAILER'S LICENSE. 
          UH, AND A TEXAS, UH, TELECOMMUNICATOR OFFICER LICENSE, AGAIN, A DISPATCH POSITION. 
          UH, THESE ARE ALL POSITIONS THAT WE'RE TRYING VERY, VERY HARD TO RETAIN PEOPLE. 
          UH, YOU KNOW, RIGHT NOW EVERYBODY'S OFFERING UP, UH, UH, SIGNING FEES. 
          EVERY LAW ENFORCEMENT AGENCY IN THE COUNTRY'S OFFERING SIGNING FEES RIGHT NOW, WE'RE ALL, UM, LIKE A SIGNING BONUS, SIGNING BONUSES. 
          OKAY. 
          UH, SIGNING BONUSES. 
          YES, SIR. 
          UM, PAY RAISES, YOU KNOW, AT, AT PRESENT WE CAN, WE'RE HAPPY TO REPORT THAT AT, AT THE SHERIFF'S OFFICE, WE JUST NEGOTIATED A, A SUCCESSFULLY A COLLECTIVE BARGAINING AGREEMENT WITH THE D-S-A-B-C, THE, THE SHERIFF'S UNION, THE DEPUTY SHERIFF'S UNION, AND, UH, SUCCESSFULLY GOT A, ABOUT A 20% RAISE OVER THE COURSE OF THE NEXT SEVERAL YEARS. 
          UH, BUT WE'RE STILL, WE'RE, WE'RE TRYING EVERYTHING THAT WE CAN WITH REGARD TO RETENTION, UH, RIGHT NOW, YOU KNOW, RECRUITMENT'S HARD ENOUGH, BUT IT, BUT IT, SO WE'RE, WHILE WE'RE ENJOYING SOME SUCCESSES AND GETTING PEOPLE IN, KEEPING THEM IN UNIFORM IS, IS, IS A PROBLEM IN MANY OF THESE INSTANCES. 
          THERE'S A GREAT, A GREAT AMOUNT OF TURNOVER, NOT JUST BETWEEN AGENCIES. 
          SOME OF THESE YOUNG FOLKS ARE LEAVING TO OTHER PROFESSIONS ALTOGETHER. 
          AND SO WE'RE HOPING THAT IN, IN MAKING, UH, FREE OR DISCOUNTED, UH, ED EDUCATION TO THEM IN CONNECTION TO THEIR SERVICE, TO, TO THEIR COMMUNITY, MAYBE THAT WOULD INDU IN INDUCE SOME OF THEM TO STAY WITH US A LITTLE BIT LONGER IN THE PROFESSION AND CONSIDER, UH, BECOMING A 20 OR 30 YEAR, UH, MEMBER OF LAW ENFORCEMENT SUCH AS MYSELF, UH, IF, IF THAT, IF THAT, UH, DEGREE IS SOMETHING THAT'S OFFERED UP TO THEM AS POSSIBLE. 
          ARE YOU SEEING AN ISSUE WITH YOUNGER PEOPLE WANTING TO GO INTO LAW ENFORCEMENT? WELL, RIGHT NOW THEY'RE NOT EXACTLY BREAKING DOWN OUR DOORS TO BECOME LAW ENFORCEMENT OFFICERS. 
          OKAY. 
          NOW WE'RE DOING OKAY WITH REGARD TO, TO RECRUITMENT. 
          UH, YOU KNOW, WE ARE RECRUITING SUCCESSFULLY AT THE SHERIFF'S OFFICE, ABOUT 250, UH, NEW PEOPLE INTO THE AGENCY EVERY YEAR. 
          NOW, WHILE MAINTAINING A, A HIGH, A HIGH STANDARD, WE HAVE NOT LOWERED OUR STANDARDS AT THE SHERIFF'S OFFICE. 
          BUT WITH THAT BEING SAID, WE'RE SEEING ABOUT THAT MANY, UH, RETIREMENTS AND RES RESIGNATIONS EVERY YEAR AS WELL AS THEY MOVE ON TO GREENER PASTURES OR MAYBE OTHER OCCUPATIONS WHERE, UH, YOU KNOW, THERE, THERE IS, THERE ARE, THERE IS MORE MONEY IN SOME OF THOSE OCCUPATIONS. 
          AND, WELL, LET'S FACE IT, PEOPLE AREN'T SHOOTING AT YOU ON A DAILY BASIS IN THOSE OTHER OCCUPATIONS. 
          BUT AGAIN, I, I STILL THINK THAT IF WE, IF WE'RE ABLE TO SWEETEN THE POT JUST A BIT BY OFFERING THEM THAT, THAT EDUCATION THAT'LL HELP THEM IN PERSONAL ENRICHMENT. 
          I THINK IT ALSO ANSWERS UP, ONE OF THE OTHER DEMANDS THAT'S BEING MADE OF LAW ENFORCEMENT IS JUST TO PROVIDE BETTER EDUCATION, BETTER TRAINING TO OUR COPS. 
          RIGHT? UH, YOU KNOW, IT, IT, BACK IN 2020 WHEN WE SAW, UH, A RESURGENCE OF, OF NEW MOVEMENTS AND TO REVOLUTIONIZING, RETHINKING 
          [02:45:01]
LAW ENFORCEMENT, ONE OF THE THINGS THAT WAS BEING, UH, WE WERE BEING COMPARED TO IS OTHER COUNTRIES WHERE THEY DO REQUIRE A TWO YEAR DEGREE TO BECOME A LAW ENFORCEMENT OFFICER. 
          WHILE THAT'S NOT THE CASE HERE, WE DON'T REQUIRE IT. 
          SOME AGENCIES DO OFFER AN INCENTIVE FOR HAVING THAT TWO YEAR DEGREE. 
          BUT, BUT AGAIN, I STILL, I STILL BELIEVE THAT IT, IT'D BE A, A SMARTER MOVE FOR US TO AT LEAST CONSIDER, UH, MAKING A, MAKING THIS EDUCATION MORE AFFORDABLE BY OFFERING THESE, UH, INCENTIVES, UH, IN THE STATE SYSTEM. 
          AND YOU THINK A LOT OF MEM THE MEMBERS OF YOUR TEAM WOULD TAKE ADVANTAGE OF SOMETHING LIKE THAT? I BELIEVE SO. 
          I MEAN, AT PRESIDENT, IT'S, AGAIN, IT'S, IT'S OFFERED UP TO TEXAS PEACE OFFICERS. 
          BUT A GOOD, A FAIR AMOUNT OF MY DEPUTIES, ESPECIALLY THE YOUNGER ONES THAT AREN'T YET OLD ENOUGH TO BE A PEACE OFFICER, UH, ARE, ARE JAILERS. 
          THEY HOLD A JAILER'S LICENSE AT, YOU CAN HOLD A JAILER'S LICENSE AT THE AGE OF 18. 
          AND SO, YOU KNOW, I, I'D LOVE TO LIVE LOVE TO BE ABLE TO OPEN IT UP, AT LEAST TO SOME EXTENT. 
          MAYBE THEY DON'T GET THE, JUST THINKING OUT LOUD. 
          MAYBE THEY DON'T GET THE SAME BENEFIT AS IF THEY WERE A PEACE OFFICER, BUT MAYBE THEY GET UP TO A CERTAIN NUMBER OF HOURS IF THEY HOLD A JAILER'S LICENSE. 
          AND THEN IF THEY WANT THAT FULL FOUR YEAR DEGREE, MAYBE THEY GO TO THE, ALL THE WAY TO GET THEIR PEACE OFFICER LICENSE. 
          AND CERTAINLY, I, I'M, I'M NOT ABLE TO FIND ANYTHING THAT'S AVAILABLE TO TELECOMMUNICATORS OUR DISPATCHERS WHO ARE, UH, THEY'VE ALL BEEN RECOGNIZED, UH, YOU KNOW, NATIONWIDE AS FIRST RESPONDERS. 
          THEY'RE OUT THERE DEALING WITH THIS SITUATION, UH, FROM A DISTANCE. 
          BUT THEY'RE, THEY'RE THERE RESPONDING TO THESE SITUATIONS. 
          AND I THINK, AGAIN, I THINK WE OWE IT TO THEM, UH, JUST AS MUCH AS TO THOSE THAT WEAR THE BADGE THAT HAVE TAKEN THE OATH, UH, TO TRY TO HELP THEM OUT WITH THESE EDUCATIONAL COSTS. 
          UNDERSTOOD. 
          MEMBERS, ANY QUESTIONS ON THAT ONE? WELL, THANK YOU AGAIN, SHERIFF. 
          THESE ARE SOME EXCELLENT IDEAS FOR POTENTIAL LEGISLATION FOR THE UPCOMING 88TH LEGISLATIVE SESSION. 
          AND AS I MENTIONED BEFORE, PUBLIC SAFETY IS ALWAYS NUMBER ONE OR NUMBER TWO IN TERMS OF ANY COMMUNITY I SPEAK TO. 
          YOU KNOW, THERE ARE TOP ISSUES THAT THEY WOULD LIKE ME TO ADDRESS AS THEIR ELECTED REP. 
          AND SO, UM, THAT'S WHY I ASKED YOU TO PLEASE COME BY AND YES, SIR. 
          AND PRESENT SOME POTENTIAL PUBLIC POLICIES THAT WE CAN LOOK AT TO HELP ENSURE THAT OUR, UH, LAW ENFORCEMENT HAS ALL THE RESOURCES AND THE MANPOWER IT NEEDS TO COM TO KEEP MY FAMILY SAFE, TO KEEP OUR COMMUNITY SAFE. 
          SO THANK YOU AGAIN FOR MAKING THE DRIVE UP HERE, SHERIFF, AND, UH, WE LOOK FORWARD TO SEEING YOU BACK IN THE COMMUNITY. 
          THANK YOU SO MUCH, SIR. 
          I APPRECIATE IT. 
          THANK Y'ALL. 
          THANK YOU. 
          ALRIGHT, MEMBERS, WE HAVE OUR FINAL CHARGE FOR TODAY, CHARGE NUMBER THREE, WHICH IS TO REVIEW THE MUNICIPAL MANAGEMENT DISTRICT LEGISLATIVE TEMPLATE WITH RESPECT TO REPRESENTATION AND ACCOUNTABILITY, AND FOR US TO MAKE RECOMMENDATIONS FOR IMPROVING THE TEMPLATE. 
          AS YOU KNOW, MMDS ARE UNITS OF LOCAL GOVERNMENT CREATED TO HELP FINANCIAL FINANCE IMPROVEMENTS TO ENHANCE ECONOMIC DEVELOPMENT. 
          THEY'RE ALSO USED TO SUPPORT EXISTING MAJOR ACTIVITY CENTERS, PROMOTE NEIGHBORHOOD REVITALIZATION AND SUPPORT RAW LAND DEVELOPMENT WITH, WHILE THE CREATION OF MMD STARTED PRIMARILY IN THE HOUSTON AREA, NOW THEY'RE BEING CREATED IN MANY PARTS OF TEXAS. 
          SO WE HAVE, UH, ABOUT THREE WITNESSES, MAYBE FOUR WITNESSES HERE TODAY TO PROVIDE SOME TESTIMONY ON THAT. 
          AND SO WITH THAT, THE CHAIR CALLS ROSS MARTIN, I'M SORRY, ROBERT GALLEGOS. 
          AND THEN FOLLOWED BY, UH, ROBERT WILL BE, UH, WINSTEAD MO ROSS MARTIN. 
          MR. GALLEGOS, THANK YOU FOR BEING HERE TODAY AND FOR WAITING TO PROVIDE TESTIMONY. 
          IF YOU COULD PLEASE STATE YOUR NAME, WHO YOU REPRESENT, AND THEN YOU MAY, YOU MAY BEGIN. 
          GOOD AFTERNOON. 
          GOOD AFTERNOON. 
          CHAIRMAN, UH, CORTES AND THE COMMITTEE MEMBERS. 
          MY NAME IS ROBERT GALLEGOS. 
          I'M HOUSTON CITY COUNCIL MEMBER, REPRESENTING DISTRICT I DISTRICT I CONSISTS OF DOWNTOWN HOUSTON IDO, THE EAST END, THE HOBBY AIRPORT AREA ALONG THE PORT OF HOUSTON, AS WELL AS SOME OF NORTHEAST HOUSTON. 
          SO WELCOME TO CITY HALL AND WELCOME TO DISTRICT. 
          I THANK YOU FOR HOSTING US TODAY, COUNCILMAN. 
          THANK YOU. 
          I'M HERE TO OFFER A TESTIMONY ON AGENDA ITEM THREE. 
          WITH RESPECT TO MANAGEMENT DISTRICTS, I AM IN SUPPORT OF MANAGEMENT DISTRICTS, AND I ALSO WANNA ACKNOWLEDGE THAT CONSTABLE JERRY GARCIA WAS HERE THIS MORNING IN SUPPORT OF MANAGEMENT DISTRICTS, BUT HE HAD TO LEAVE. 
          WE ALSO HAVE A SPEAKER, CHARLES WATTS, WHO'S THE CHAIRMAN OF THE HOBBY DISTRICT, UH, THAT IS SIGNED UP TO SPEAK AS WELL. 
          AS YOU ALL KNOW, THE STATE LEGISLATURE CREATED THESE DISTRICTS AS A WAY OF PROPERTY OWNERS WITHIN A DISTRICT'S BOUNDARY TO WORK TOGETHER TO IDENTIFY PRIORITIES AND DEVELOP PLANS TO SH TO LIFT COMMUNITIES. 
          THIS WORK PROVIDES AN IMPORTANT AND TANGIBLE BENEFIT TO THE FOLKS WHO OWN COMMERCIAL PROPERTY OR WHO LIVE, 
          [02:50:01]
WORK OR VISIT AREAS WITHIN THE MANAGEMENT DISTRICT. 
          IN DISTRICT I, MY DISTRICT, WE HAVE FOUR MANAGEMENT DISTRICTS THAT SERVE AND SUPPORT THOUSANDS OF BUSINESSES AND AREA RESIDENTS. 
          I CAN TELL YOU FROM PERSONAL EXPERIENCE AND AS A LONG RESIDENT OF DISTRICT I, THAT OUR MANAGEMENT DISTRICT SUPPORT ECONOMIC GROWTH, DRIVE INVESTMENT, BRING VISITORS TO THE DISTRICT AND CONTRIBUTE TO THE NEIGHBORHOODS REVITALIZATION. 
          THEY ARE AN IMPORTANT AND VISIBLE PARTNER. 
          THE DISTRICT'S BOARD MEMBERS ARE THE EYES AND EARS OF THE COMMUNITIES THEY SERVE. 
          AND IN MANY INSTANCES, OUR BUSINESS OWNERS AND KEY STAKEHOLDERS THEMSELVES, THEY KNOW THE COMMUNITY BEST AND ARE MORE THAN QUALIFIED TO REPRESENT THEM. 
          NOW, I KNOW THERE WAS AN ATTEMPT LAST LEGISLATIVE SESSION BY A REPRESENTATIVE TO UNDERMINE THE EXISTENCE OF LEGALLY ESTABLISHED AND OPERATED MANAGEMENT DISTRICTS. 
          UNFORTUNATELY, I BELIEVE THAT EFFORT WAS COMPLETELY MISGUIDED AND APPEARS TO HAVE BEEN MOTIVATED BY PERSONAL INTERESTS. 
          THANKFULLY, THIS COMMITTEE AND OTHER MEMBERS CORRECTLY REJECTED THOSE EFFORTS THIS LAST SESSION. 
          THOSE WITHIN MANAGEMENT DISTRICTS HAVE THE ABILITY TO DISBAND A MANAGEMENT DISTRICT IF THEY SO CHOOSE TO DO SO. 
          STATE LAW ALREADY PROVIDES A VERY CLEAR PROCESS FOR ELIMINATING A DISTRICT. 
          I HOPE THIS COMMITTEE PLACES ITS FOCUS ON SUPPORTING ORGANIZATIONS LIKE MANAGEMENT DISTRICTS THAT CONTRIBUTE TO A COMMUNITY'S QUALITY OF LIFE, ECONOMIC STRENGTH, AND NEIGHBORHOOD REVITALIZATION, ESPECIALLY WHEN IT, WHEN IT BENEFITS INNER CITY NEIGHBORHOODS INSIDE THAT MANAGEMENT DISTRICT. 
          ANY EFFORT TO WEAKEN A MANAGEMENT DISTRICT OR UNDERMINE THEIR EXISTENCE IS COUNTERPRODUCTIVE AND WILL NOT CONTRIBUTE TO A COMMUNITY'S FUTURE GROWTH AND SUCCESS. 
          THANK YOU FOR YOUR TIME. 
          THANK YOU COUNCILMAN FOR BEING HERE. 
          MEMBERS. 
          ANY QUESTIONS FOR COUNCILMAN GALLEGOS? UH, REPRESENTATIVE GATES? YEAH, I, I HAVE A FEW. 
          YOU MENTIONED THERE WAS LEGISLATION LAST YEAR TO UNDERMINE, WHAT WOULD THAT LEGISLATION DO THAT WOULD UNDERMINE THE MANAGEMENT DISTRICT? WHAT I UNDERSTAND IS TO WEAKEN THE PURPOSE OF THE MANAGEMENT DISTRICT, CAN, CAN YOU GIMME AN EXAMPLE OF HOW IT WEAKENED MANAGEMENT DISTRICTS IN REGARDS TO RIGHT NOW THERE'S TWO THIRDS OF WHAT I UNDERSTAND. 
          THERE'S TWO THIRDS OF ASSESSED BUSINESS OWNERS, OR YOU NEED TWO THIRDS OF BUSINESS ASSESS BUSINESS OWNERS TO DECIDE TO REMOVE A MANAGEMENT DISTRICT. 
          SO WHAT I UNDERSTAND THAT THEY'RE TRYING TO, UH, MAKE THAT EASIER FOR BUSINESSES TO, UH, GET OUT OF THE MANAGEMENT DISTRICT AND TO WHAT LEVEL WERE THEY TRYING, WAS THAT LEGISLATION TRYING TO REDUCE IT FROM THE TWO THIRDS TO WHAT, AGAIN, WHAT I UNDERSTAND THAT THEY WERE TRYING TO MAKE IT EASIER TO GET OUTTA THE MANAGEMENT DISTRICTS. 
          ALL THE DETAILS, I DON'T UNDERSTAND. 
          I DON'T KNOW. 
          YOU CAN ASK, UH, CHARLES WATTS, WHEN HE COMES UP TO SPEAK, HE'S WITH THE MANAGEMENT DISTRICT. 
          WELL, YOU USED THE WORDS, THE LEGISLATION'S GONE IN THEIR MIND. 
          SO I ASSUMED YOU HAD A FOUNDATION FOR THAT. 
          SO I'M JUST TRYING TO SEE WHAT YOUR FOUNDATION WAS TO SAY THAT THAT LEGISLATION WAS UNDERMINING A MANAGEMENT DISTRICT. 
          WHAT IF IT WEAKENED IT FROM TWO THIRDS? WHAT WAS IT GONNA TAKE IT DOWN TO? YOU DON'T KNOW. 
          SURE. 
          YOU DON'T KNOW. 
          NO. 
          CAN CAN YOU ELABORATE? CAN YOU ELABORATE? I BELIEVE YOU'RE THE ONE THAT WAS PROPOSED. 
          OKAY. 
          PRESENTING THAT YOU, YOU'RE AN ELECTED OFFICIAL, RIGHT? IF THE PEOPLE DECIDE THEY WANNA VOTE YOU OUT OF OFFICE, HOW, WHAT PERCENTAGE OF THE PEOPLE THAT VOTE HAVE TO VOTE AGAINST YOU TO VOTE YOU OUT? THE MAJORITY. 
          MAJORITY. 
          50, 50% PLUS ONE. 
          RIGHT. 
          IS IT UNFAIR IF YOU ARE DISSATISFIED WITH YOUR MANAGEMENT DISTRICT? IF YOU HAD TO GET 55%, WOULD THAT, WOULD THAT BE UNFAIR? WELL, AGAIN, REPRESENTATIVE GATES, I REPRESENT THE HOBBY AREA MANAGEMENT DISTRICT. 
          I 
          [02:55:01]
REPRESENT FOUR MANAGEMENT DISTRICTS, AND NO ONE HAS CALLED MY OFFICE TO SAY THEY WANNA LEAVE A MANAGEMENT DISTRICT. 
          THAT WASN'T A QUESTION. 
          NO, THAT IS A QUESTION YOU ASKED ME. 
          IF I'M AN ELECTED OFFICIAL, WHICH I AM, I REPRESENT DISTRICT I, WHICH I DO, THERE ARE FOUR MANAGEMENT DISTRICTS IN MY DISTRICT, WHICH THERE ARE, AND NOT ONE BUSINESS OWNER FROM THE FOUR MANAGEMENT DISTRICTS IN NINE YEARS HAS CALLED ME AND SAID, I WANT TO GET OUT OF THE MANAGEMENT DISTRICT. 
          SO WHY IS THIS BODY TRYING TO MAKE IT 50 PLUS ONE TO GET OUT OF A MANAGEMENT DISTRICT? SO THE QUESTION IS, IF IT'S 50, REGARDLESS OF THE REASON, IF THE PEOPLE WANNA VOTE YOU OUT, ALL THEY NEED IS 50% PLUS ONE. 
          REGARDLESS OF THE REASON, REGARDLESS IF THEY NEVER MAKE A CALL TO YOUR OFFICE OR WHATEVER, IF 50% PLUS ONE DECIDE TO VOTE YOU OUT, YOU'RE OUT FOR A MANAGEMENT DISTRICT. 
          WHAT'S WRONG? IF THE PEOPLE WHO ARE PAYING THE ASSESSMENT, IF 50% PLUS ONE SAY, WE WENT OUT, WHY IS THAT WRONG? BECAUSE NO ONE IS ASKING FOR THAT. 
          BUT WHERE IS IT REQUIRED THAT YOU GOTTA ASK? IS, IS THAT YOUR ONLY PARAMETER OF SAYING THAT? BECAUSE YOU JUST STATED THE MAJORITY RULES. 
          NO ONE IS ASKING FOR THAT, THAT I'M AWARE OF. 
          SO, ONLY BECAUSE NO ONE'S ASKING YOU, YOU'RE SAYING THAT THE LEGISLATION IS BAD? YES. 
          AGAIN, 50% PERFECTLY CLEAR. 
          I'M REPRESENTING DISTRICT I, I'M HERE REPRESENTING DISTRICT I, THERE ARE FOUR MANAGEMENT DISTRICTS IN MY DISTRICT. 
          NOT ONE BUSINESS OWNER IN THOSE FOUR MANAGEMENT DISTRICTS HAS CALLED MY OFFICE IN NINE YEARS TO SAY THEY WANNA BE TAKEN OUT OF A MANAGEMENT DISTRICT. 
          OKAY. 
          UNDER, SO WHY CHANGE IT TO 50 PLUS ONE? WELL, WHAT'S THE ISSUE? WHY ARE YOU SPENDING TIME ON THIS? DO YOU KNOW UNDER WHAT, WHAT IT TOOK TO CREATE THE MANAGEMENT DISTRICT? SIR, I'M A, I'M A CITY COUNCIL MEMBER IN REGARDS TO DETAILS LIKE THAT. 
          YOU'LL HAVE TO ASK THOSE THAT ARE WITH MANAGEMENT DISTRICTS. 
          OKAY. 
          IF YOU CAN CREATE, IF THE MANAGEMENT DISTRICT WAS CREATED WITH VIRTUALLY ONLY 1%, 2% OF THE PEOPLE AGREEING TO IT, WOULD YOU SAY THAT'S, AND NOW IT TAKES TWO THIRDS TO GET RID OF ONE. 
          YOU DON'T SEE SOME INEQUITY IN THERE? NO, I DON'T. 
          AND IF 50%, WHAT WOULD YOU, IF NO ONE'S CALLED YOU AND COMPLAINED IN ALL THE YEARS, WHAT WOULD YOU BE AFRAID OF? IF IT TOOK 50% PLUS ONE AND THEY ACTUALLY SIGNED A PETITION TO ELIMINATE, WHAT, WHY WOULD THAT TYPE OF LEGISLATION BOTHER YOU IF IT, IF 50% PLUS ONE BOTHERS YOU, BUT YOU'RE OKAY WITH 66%, IS THERE A NUMBER IN THERE THAT YOU WOULD BE OKAY, STATE REPRESENTATIVE? WHAT WOULD BOTHER ME, WHAT REALLY WOULD BOTHER ME IS THAT, FOR EXAMPLE, LIKE THE SHERIFF JUST STATED, ALL THE LAW ENFORCEMENT AGENCIES IN THE STATE AND IN THE COUNTRY ARE COMPETING FOR POLICE OFFICERS. 
          WE HAVE AN ISSUE WITH CRIME, LIKE OTHER AREAS OF THE CITY, WE HAVE LIMITED RESOURCES. 
          WE ONLY HAVE 505,400 POLICE OFFICERS COVERING OVER 645 SQUARE MILES. 
          MANAGEMENT DISTRICTS, IF THEY CHOOSE TO DO SO WITH THEIR ASSESSMENTS, CAN HIRE SECURITY COMPANIES OR CONSTABLES TO HELP PATROL. 
          FOR INSTANCE, A YEAR AGO AT THE 8,400 BLOCK OF BROADWAY, WHICH I'M SURE YOU'RE FAMILIAR WITH, THERE WAS A DOUBLE HOMICIDE EXECUTION STYLE DURING THE AFTERNOON, BROAD DAYLIGHT, A GANG MEMBER JUST WALKED UP WITH THEIR PISTOLS DRAWN AND SHOT A YOUNG HISPANIC MALE SITTING IN HIS CAR. 
          AND THAT WAS A RETALIATION FROM ANOTHER SHOOTING. 
          A WEEK BEFORE NEAR THE 8,400 BLOCK OF BROADWAY, I HAD A LOT OF PHONE CALLS FROM RESIDENTS AND FROM BUSINESSES IN THE AREA THAT WERE CONCERNED ABOUT THAT SHOOTING AND THE SHOOTING FROM THE WEEK BEFORE. 
          SO 
          [03:00:01]
I REACHED OUT TO HPD AND THEY TELL ME, COUNCIL MEMBER, WITHIN A YEAR'S TIME, FROM FEBRUARY 21ST, 2021 TO FEBRUARY OF 2022, THERE WERE HA 700 CALLS FOR SERVICE IN ONE YEAR TO THE 8,400 BLOCK OF BROADWAY TO THE 84 0 5 BROADWAY AND TO 8,500 BROADWAY, 700 CALLS TO THREE APARTMENT COMPLEXES ON BROADWAY. 
          I'VE REACHED OUT TO THE LANDLORD. 
          HPD HAS REACHED OUT TO THE LANDLORD, THE MANAGEMENT DISTRICT HAS REACHED OUT TO THE LANDLORD, AND I'M STILL WAITING TO HEAR FROM THE LANDLORD. 
          THAT'S MY CONCERN, SIR, IS MANAGEMENT DISTRICTS PAY IF THEY WISH TO DO SO FOR SECURITY GUARDS AND FOR CONSTABLES TO HELP PATROL AND PROTECT THE RESIDENTS AND THE BUSINESS OWNERS THAT LIVE IN THAT AREA. 
          AND WITHOUT A MANAGEMENT DISTRICT, THAT WOULD NOT HAPPEN. 
          OKAY. 
          A MANAGEMENT DISTRICTS IS NOT, ISN'T IT WHAT YOU JUST DESCRIBED IN CRIME, ISN'T THAT A HPD ISSUE? NO, SIR. 
          IT'S A CITYWIDE ISSUE. 
          NO. 
          OKAY. 
          IF ALL THAT YOU'RE SAYING IS CORRECT, AND IF THE MANAGEMENT DISTRICT HAS A SECURITY SERVICE THAT IS DOING SOMETHING THAT THE MANAGEMENT DISTRICT FINDS ACCEPTABLE, THE PEOPLE WHO ARE PAYING THE ASSESSMENT, WHY WOULD 50% PLUS ONE OR 66% AGREE TO DISBAND AND, AND WOULDN'T THEY ONLY, WHY WOULD THEY SIGN TO DISBAND IF THEY FELT IT WAS DOING A GOOD JOB? OKAY, LET ME SAY ONE MORE TIME. 
          I REPRESENT DISTRICT I FOUR MANAGEMENT DISTRICTS IN MY DISTRICT. 
          I'VE BEEN IN OFFICE FOR NINE YEARS. 
          NOT ONE BUSINESS OWNER HAS CALLED ME TO SAY THEY WANNA GET OUT OF THE MANAGEMENT DISTRICT OR TO SAY THEY WON 50 PLUS ONE. 
          THEY HAVEN'T EVEN CRITICIZED THE TWO, THE TWO THIRDS OF ASSESSED BUSINESSES IN ORDER, IN ORDER TO GET OUT OF MANAGEMENT DISTRICT. 
          SO WHY ARE, WHY IS THIS BODY EVEN SPENDING TIME WITH THIS ISSUE WHEN THE BENEFITS OUTWEIGH THE 50 PLUS ONE? I CAN'T SPEAK FOR THE BODY, BUT I CAN SAY THAT JUST THE FACT THAT YOU'RE WORRIED THAT WITH EVERYTHING THAT YOU SAY IS CORRECT, LET, LET'S JUST ASSUME THAT, AND YOU HAVEN'T HAD ANYONE CALL AND ALL THIS CRIME IS, AS YOU STATE, I QUESTION THEM. 
          WHY WOULD IT BE A CONCERN TO YOU THAT TO DISBAND THAT IF THE PEOPLE WHO ARE PAYING THE ASSESSMENT ARE UNHAPPY? IF 50% PLUS ONE AGREE, WHY? I DON'T KNOW WHY YOU WOULD BE AGAINST THAT. 
          THEN IF EVERYTHING IS GOING, AS YOU SAY, BE, BECAUSE AGAIN, I HAVEN'T HEARD OF ANYONE BEING UNHAPPY. 
          WELL THEN WHY WOULD YOU BE CONCERNED THAT IT TAKE 50% PLUS ONE IF NO ONE'S UNHAPPY? BECAUSE THEN IT WILL NEVER HAPPEN. 
          WITH THAT SAID, WHY WOULD YOU EVEN SPEND TIME WITH THIS ISSUE? NO ONE IS UNHAPPY, SIR. 
          WHAT, WHAT THEY ARE HAPPY WITH IS THAT THEY SEE HPD OFFICER PATROLLING, THEY SEE A SECURITY GUARD IF THEY HAVE ONE IN THEIR MANAGEMENT DISTRICT PATROLLING. 
          IF THEY SEE A CONSTABLE DEPUTY, IF THEY'RE ABLE TO PAY FOR A CO CONSTABLE DEPUTY TO PATROL PATROLLING, THAT'S WHAT THEY'RE HAPPY ABOUT. 
          OKAY. 
          SO IT SEEMS LIKE YOUR ONLY ARGUMENT IS YOU HAVEN'T SEEN WHERE ANYONE, YOU HAVEN'T SEEN ANY VOCAL OPPOSITION. 
          IS THAT RIGHT? RIGHT. 
          I HAVEN'T, I HAVEN'T SEEN OR HEARD OF ANY OPPOSITION. 
          OKAY. 
          SO AS SOMEONE WAS TO BRING TO YOUR OFFICE IN MANAGEMENT DISTRICTS WHERE OVER 50% HAVE ALREADY SIGNED, BUT THEY CAN'T REACH THE 66%, BUT LET'S SAY THEY'RE AT 56, 50 7%, WOULD THAT BE GOOD ENOUGH FOR YOU TO THINK MAYBE THERE'S A PROBLEM IF THERE'S ACTUAL PETITIONS THAT EXCEED 56 TO 57%, IF YOU COULD SEE THOSE PETITIONS WHERE PROPERTY OWNERS WHO ARE IN THOSE MANAGEMENT DISTRICTS WANT TO DISBAND THAT PARTICULAR MANAGEMENT DISTRICT. 
          AND SO THE TYPICAL MANAGEMENT DISTRICT, I DIDN'T THINK YOU MENTIONED HOBBY, I DON'T HAVE THE CORRECT FIGURE HERE, BUT IT'S AROUND $2 BILLION OF ASSESSED VALUE. 
          IF I WAS TO SHOW YOU PETITIONS THAT EXCEEDED $1.2 BILLION 
          [03:05:02]
IN PEOPLE WHO HAVE SIGNED BUSINESS OWNERS IN YOUR DISTRICT THAT HAVE SIGNED A PETITION SAYING THEY WANNA DISBAND, WOULD YOU CHANGE YOUR OPINION IF TWO THIRDS OF THE ASSESSED BUSINESS OWNERS COME TO ME OR TO THE MANAGEMENT DISTRICT ACTUALLY AND SAY, WE DON'T WANNA BELONG IN THE MANAGEMENT DISTRICT, THEN THAT'S THE STATE LAW. 
          IF I BROUGHT YOU $1.2 BILLION OF ASSIGNED PETITIONS OF THE 2 BILLION, WOULD THAT CHANGE YOUR OPINION? NOT, NOT 66, BUT RIGHT NOW, $1.2 BILLION OF THE 2 BILLION. 
          WOULD THAT CHANGE YOUR OPINION? NO, SIR. 
          AGAIN, I'M GOING BY CURRENT STATE LAW. 
          OKAY. 
          IF YOU CAN GIMME TWO THIRDS OF BUSINESS OWNERS SAYING THAT THEY DO NOT WANNA BELONG IN A MANAGEMENT DISTRICT. 
          OKAY, NOW WE'RE GETTING SOMEWHERE. 
          SO YOU'RE SAYING BECAUSE OF STATE LAW THAT IF I BROUGHT YOU ONE 66%, IT WOULD CHANGE YOUR OPINION. 
          BUT ANYTHING SHORT OF THAT, YOUR OPINION REMAINS THE SAME THAT NO CHANGE IN IN THE LAW? NO. 
          MY OPINION, SIR, IS THAT I SUPPORT MANAGEMENT DISTRICTS. 
          THERE, THERE, THERE ARE A GREAT, GREAT ASSETS, YOU KNOW, I, I WAS BORN AND RAISED IN THE EAST END, AND WE HAVE THE EAST END MANAGEMENT DISTRICT IN THE EAST END. 
          THEY'RE DOING AN OUTSTANDING JOB. 
          THERE'S IMPROVEMENTS IN OUR DISTRICT OR IN, IN THE, IN THE EAST END, THANKS TO THE EAST END MANAGEMENT DISTRICT, THERE ARE IMPROVEMENTS ALONG IN THE HOBBY AIRPORT AREA, THANKS TO THE HOBBY AREA MANAGEMENT DISTRICT, THERE'S IMPROVEMENTS IN DOWNTOWN. 
          A LOT OF IMPROVEMENTS IN DOWNTOWN. 
          THANK YOU TO THE DOWNTOWN MANAGEMENT DISTRICT. 
          SO, NO, SIR, I SUPPORT MANAGEMENT DISTRICTS. 
          AND FOR YOU TO SAY, WOULD YOU DISBAND ONE, I'LL TRY MY BEST NOT TO. 
          EVEN IF MORE THAN THE MAJORITY, ANYTHING SHORT OF 66%, YOU'RE GONNA WORK AGAINST YOUR OWN PEOPLE. 
          SIR. 
          AGAIN, I THINK YOUR CONCERN SHOULD BE THAT THERE WERE 700 HPD CALLS IN THREE PROPERTIES ALONG BROADWAY IN A YEAR. 
          CAN YOU IMAGINE WHAT THOSE OFFICERS COULD BE DOING IF THEY DIDN'T HAVE TO GO TO THREE APARTMENT COMPLEXES ALONG THE ALONG BROADWAY? THAT'S WHERE YOU SHOULD BE CONCERNED ABOUT. 
          INSTEAD OF TRYING TO FIGURE OUT IF IT SHOULD BE 50 PLUS ONE, WE HAVE LIMITED RESOURCES IN THE CITY OF HOUSTON. 
          WE ONLY HAVE 5,400 POLICE OFFICERS COVERING OVER 645 SQUARE MILES, 700 CALLS IN ONE YEAR. 
          WENT TO THREE APARTMENT COMPLEXES ON THE GULF FREEWAY. 
          I MEAN, ALONG BROADWAY, EXCUSE ME, ALONG BROADWAY, 8,400 BLOCK OF BROADWAY, 84 0 5 BROADWAY, AND 8,500 BLOCK OF BROADWAY. 
          AND I STILL HAVE TO HEAR FROM THE LANDLORD TO SEE WHAT CAN BE DONE TO CORRECT THAT. 
          WHAT IF THE STATISTICS SHOWED THAT SINCE THE CHANGE OF OWNERSHIP OF THOSE PROPERTIES, THAT THE CALLS TO HPD HAS DROPPED BY 35%. 
          SO WHILE THAT'S STILL A HIGH NUMBER, IT IS DROPPED FROM WHAT IT WAS BEFORE THE CURRENT OWNERSHIP, WOULD THAT SHOW NOT SHOW THAT THAT OWNERSHIP IS TRYING TO ALLEVIATE? AND WHAT IF I WAS ABLE TO SHOW YOU THE STATISTICS THAT THOSE THREE THAT YOU CITE PER UNIT HAVE A LOWER CALL BASIS THAN ALL THE OTHER NEIGHBORING PROPERTIES THAT ACTUALLY, EVEN THOUGH YOU CLAIM THE 700, THAT IT MAY BE THE LOWEST IN THE NEIGHBORHOOD. 
          HAVE YOU LOOKED IN THE STATISTICS TO SEE HOW THEY COMPARE TO THEIR NEIGHBORS AND HOW THEY COMPARED BEFORE THE CURRENT OWNERSHIP? SIR, IT'S A SIMPLE QUESTION. 
          HAVE YOU, LEMME GIVE YOU A SIMPLE ANSWER. 
          WHEN, WHEN THE HBD COMMANDER OF THE SOUTHEAST DIVISION TELLS ME COUNCIL MEMBER, WE HAD 700 CALLS IN ONE YEAR, ONLY TO THREE APARTMENT COMPLEXES ON BROADWAY. 
          THAT BREAKS IT DOWN TO 58 CALLS A MONTH, 14 CALLS A WEEK. 
          AND WE HAVE LIMITED RESOURCES AS THE SHERIFF JUST STATED WITH ALL POLICE AGENCIES. 
          AND HPD IS ONE OF THEM AS WELL. 
          WITH 5,004, UH, THREE, UH, YEAH, 5,400, UH, POLICE OFFICERS COVERING OVER 645 SQUARE MILES. 
          WE DON'T NEED POLICE OFFICERS BEING CALLED 700 TIMES IN ONE YEAR. 
          TWO THREE APARTMENT COMPLEXES. 
          [03:10:02]
YOU BROKE IT DOWN TO 14 CALLS PER WEEK, WHICH COMES OUT TO TWO PER DAY. 
          AND HOW MANY UNITS COMPRISES THOSE THREE? HOW MANY UNITS, HOW, HOW MANY UNITS COMPRISE THOSE THREE COMPLEXES REFERRING TO? I DON'T KNOW. 
          I THINK WE MIGHT HAVE THAT ANSWER. 
          HOW MANY UNITS ARE IN THOSE THREE APARTMENT COMPLEXES? WELL, YOU SAID YOU BREAK IT DOWN TO TWO PER DAY AND IF THOSE COM AND YOU DON'T KNOW WHAT THE, BECAUSE WOULDN'T IT MAKE A DIFFERENCE? TRY TO PUT IN ANY CONTEXT HOW MANY UNITS THOSE THREE COMPLEXES ARE. 
          YES. 
          I MEAN, CAN YOU FIGURE THAT OUT FOR ME THEN? HOW MANY UNITS ARE YOU, YOU HAVEN'T FIGURED THAT OUT. 
          NO. 
          AND SO WHILE YOU HAVEN'T FIGURED THAT OUT EASIER, EASIER, YOU JUST TELL ME HOW MANY UNITS ARE IN EACH APARTMENT COMPLEXES ON THOSE THREE ADDRESSES ON BROADWAY. 
          YOU ALSO HAVEN'T FIGURED OUT WHAT THE PREVIOUS CALL RATE WAS EITHER. 
          AND YOU DON'T KNOW IF ACTUALLY THOSE PROPERTIES HAVE IMPROVED AND YOU DON'T KNOW HOW THEY COMPARE TO THE OTHER PROPERTIES IN THE SAME NEIGHBORHOOD. 
          BUT BESIDES ALL THAT, 'CAUSE WE'RE, WE'RE GETTING IN, OFF, OFF THE ISSUE. 
          I DON'T THINK WE'RE GONNA AGREE EVEN THOUGH IF THE NO, I, I KNOW, I KNOW, I KNOW. 
          WE'RE NOT GONNA AGREE. 
          YEAH. 
          EVEN IF I, ANYTHING SHORT OF TWO THIRDS OF YOUR CONSTITUENTS WHO ARE BUSINESS OWNERS, SAY THEY WANTED TO SPAN, EVEN IF I BROUGHT YOU 55% OF THOSE BUSINESS OWNERS, YOU, YOU WOULD NOT FIND IT ACCEPTABLE TO TRY TO DISBAND. 
          YOU WANT 66% AND YOU FEEL ANY LEGISLATION TO REDUCE THAT 66% IS WRONG. 
          WELL, SIR, AGAIN, WHEN THERE WERE 700 HPD CALLS TO THREE APARTMENT COMPLEXES IN ONE YEAR, AND DUE TO A MANAGEMENT DISTRICT, YOU HAVE CONSTABLES THAT ARE HELPING THE PATROL DURING A, DUE TO A MANAGEMENT DISTRICT, YOU HAVE A SECURITY GUARD COMPANY THAT'S HELPING THE PATROL. 
          NO, I'M NOT GOING TO JUST SAY, YES, I'M GONNA DISSOLVE THE MANAGEMENT DISTRICT IF THERE WERE 700 CALLS JUST BY HPD. 
          AND I THINK WE'RE, UM, KIND OF REHASHING A LOT OF THE SAME POINTS AND THE SAME QUESTIONS. 
          REPRESENTATIVE, DID YOU HAVE ANY FURTHER? NO. 
          THANK YOU SO MUCH, COUNCILMAN. 
          THANK YOU AGAIN FOR BEING HERE TODAY. 
          THANK YOU AND APPRECIATE YOUR TESTIMONY. 
          NEXT CHAIR CALLS WINSTEAD ROSS MARTIN. 
          MR. MARTIN, IF YOU COULD PLEASE STATE YOUR NAME, WHO YOU REPRESENT, AND YOU BEGIN YOUR TESTIMONY. 
          THANK YOU FOR BEING PATIENT AND WAITING. 
          HERE YOU BE. 
          GOOD AFTERNOON. 
          UH, MR. CHAIRMAN AND MEMBERS, UH, ROSS MARTIN, UH, WITH WINSTEAD PC. 
          I'M AN ATTORNEY, UH, WITH THE FIRM, UH, REP. 
          WE REPRESENT, UH, MUNICIPAL MANAGEMENT DISTRICT STATEWIDE, UM, MAINLY FOR, UH, LAND DEVELOPMENT. 
          AS YOU HAD, UH, ALLUDED TO IN YOUR INTRODUCTION. 
          UM, WE HELPED, UH, AS A CONSULTING FIRM, UH, WITH SEVERAL OTHER LAW FIRMS THAT WORK IN THE, IN THE AREA, UH, IN THE DEVELOPMENT OF THE TEMPLATE, UH, ALONG WITH, UH, THE HOUSE SPECIAL DISTRICTS COMMITTEE, UH, THE INTERGOVERNMENTAL RELATIONS COMMITTEE ON THE SENATE SIDE, UH, AND HAVE BEEN UTILIZING THAT TEMPLATE OVER THE PAST FEW SESSIONS. 
          UM, AND, UH, YOU KNOW, PART OF MY, UH, THOUGHT, YOU KNOW, WE, AS I SAID, WE NORMALLY USE THE MANAGEMENT DISTRICTS FOR LAND DEVELOPMENT, SO WE DON'T RUN INTO SOME OF THE ISSUES, UH, THAT RUN INTO HERE IN HOUSTON, UH, FOR EXAMPLE. 
          UH, BUT, UH, A LOT OF OUR MANAGEMENT DISTRICTS ARE THEREFORE CREATED USING THE TEMPLATE, UH, IN, IN A LEGISLATIVE MANNER RATHER THAN, UH, UNDER CHAPTER 3 75, THE LOCAL GOVERNMENT CODE, THE STATUTORY AUTHORITY. 
          UM, BECAUSE, UH, THAT STATUTE, YOU KNOW, DOESN'T WORK QUITE AS WELL FOR THE LAND DEVELOPMENT SIDE OF IT, BUT THE TEMPLATE DOES, DOES WORK WELL. 
          UM, WE'VE BEEN USING IT IN PRACTICE, UH, YOU KNOW, OVER, OVER TIME, YOU KNOW, WITH THE DISTRICTS THAT HAVE BEEN CREATED. 
          UM, AND, UH, IT, YOU KNOW, IT SEEMS TO BE WORKING VERY WELL. 
          YOU KNOW, THE, THE GENESIS OF THE TEMPLATE WAS THERE WERE A LOT OF DIFFERENT FORMATS BEING USED FOR THE BILLS. 
          IT WAS HARD FOR THE COMMITTEE TO, UH, YOU KNOW, FIGURE OUT WHICH, WHICH BILL SAID WHAT AND WHERE. 
          SO, UH, IT GIVES US A GREAT BASE TO WORK OFF OF, UH, AND SEEMS TO BE WORKING WELL IN PRACTICE. 
          PROBABLY THE AREA THAT I, THAT I WOULD SEE A LITTLE IMPROVEMENT ON, UH, IS THERE ARE, YOU KNOW, KIND OF WHAT I THINK OF AS TEMPLATE PLUS. 
          SO THE MANAGEMENT DISTRICT, UH, STATUTE AND THE WAY THAT THE TEMPLATE IS USED, UH, IS A LITTLE BIT MORE FLEXIBLE THAN SAY, A MUNICIPAL UTILITY DISTRICT. 
          AND IT'S REALLY MEANT TO ADDRESS DIFFERENT TYPES OF DEVELOPMENTS, YOU KNOW, POTENTIALLY 
          [03:15:01]
MIXED USE DEVELOPMENTS. 
          UH, THERE ARE SOME THAT HAVE RAIL AUTHORITY. 
          THERE ARE SOME THAT HAVE ASSESSMENT AUTHORITY FOR CAPITAL IMPROVEMENTS. 
          UH, SO THERE ARE, UM, SORT OF PRE-APPROVED TEMPLATE CONCEPTS THAT CAN BE ADDED ON TO THE BASE TEMPLATE. 
          UH, AND YOU KNOW, SOMETIMES THE COMMITTEES AGREE ON THOSE, SOMETIMES THEY DON'T. 
          UH, I THINK IT WOULD BE HELPFUL TO PROBABLY HAVE MORE OF THOSE, UH, AND HAVE THOSE ALSO BE A LITTLE MORE STANDARDIZED, UM, FOR USE, YOU KNOW, PRIOR TO THE SESSION SO PEOPLE KIND OF KNOW WHAT, WHAT ISN'T, UH, WHAT YOU CAN HAVE, UH, IN THE BILL OR NOT, OR YOU KNOW, YOU KNOW, SOME THINGS ARE ALWAYS GONNA BE VERY UNIQUE AND THEY REQUIRE MORE EXPLANATION TO THE COMMITTEE, AND I THINK EVERYONE UNDERSTANDS THAT. 
          BUT, UH, JUST, YOU KNOW, KNOW A FEW TWEAKS HERE AND THERE TO SOME OF THE MORE UNIQUE, UH, ASPECTS OF IT, I THINK WOULD BE, UH, I THINK WOULD BE HELPFUL. 
          UH, YOU KNOW, WE'VE SEEN, WE'VE SEEN A LOT, UH, A LOT OF USE OF THESE MANAGEMENT DISTRICTS FOR, YOU KNOW, SOME VERY LARGE, VERY HIGH PROFILE PROJECTS ACROSS THE STATE. 
          UH, AND, YOU KNOW, THEY'VE BEEN VERY SUCCESSFUL, UH, IN PRACTICE. 
          AND I THINK, YOU KNOW, MYSELF AND OTHERS HAVE SEEN THAT AS WELL. 
          SO, UM, THAT WOULD PROBABLY BE MY SUGGESTION SPECIFICALLY REGARDING THE TEMPLATE. 
          UH, AND YOU KNOW, I'M AVAILABLE FOR ANY QUESTIONS YOU MAY HAVE. 
          THANK YOU MR. MARTIN, FOR BEING HERE TODAY AND FOR YOUR TESTIMONY MEMBERS. 
          ANY QUESTIONS? YEAH, HERE WE COME. 
          SENATOR GATES, MOST OF THE MANAGEMENT DISTRICTS THAT YOU REPRESENT, IT, IT'S A LOT OF NEW DEVELOPMENT, RIGHT? CORRECT. 
          AND THEY SORT OF NEED THIS STRUCTURE TO BE ABLE TO, TO DEVELOP AND HELP PUT IN THE ROADS, POSSIBLY GET SOME FINANCING. 
          YES. 
          AND IT'S USUALLY, THERE'S NO BUSINESSES THERE. 
          IS THAT WHEN YOU START IN THESE BIG LARGE, YES. 
          TYPICALLY WE'RE STARTING FROM JUST A BARE BALL PIECE OF LAND AND, AND DEVELOPING IT YOU FROM THE BEGINNING. 
          SO THERE'S, THERE AREN'T USUALLY EXISTING, UH, BUSINESSES OR HOMEOWNERS IN THE AREA. 
          UH, AND WE'RE FINANCING PUBLIC INFRASTRUCTURE NOW. 
          IT IS MEANT TO WHEN THERE ARE, WHEN THERE IS DEVELOPMENT, YOU KNOW, THE MANAGEMENT DISTRICT TOOL, UH, CAN ALLOW YOU TO PROVIDE ADDITIONAL SUPPLEMENTAL SERVICES LIKE SECURITY, TRASH PICKUP, THAT SORT OF THING, WHICH CAN BE REALLY USEFUL IF YOU'VE GOT, YOU KNOW, A 3000 ACRE PROJECT YOU'RE WORKING WITH. 
          UM, BUT FROM THE BEGINNING, YOU KNOW, YOU, YOU'RE, YOU'RE WORKING FROM SCRATCH. 
          YEAH. 
          AND I THINK THERE'S 193 MANAGEMENT DISTRICTS IN THE STATE OF TEXAS IS THE STATISTIC I GET. 
          AND 12 WAS FORMED THROUGH THE PROCESS, THROUGH THE TCEQ, AND THEN THE OTHERS HAVE BEEN FORMED THROUGH SPECIAL LAW. 
          MM-HMM . 
          AND THE AVENUE THAT YOU'RE USING, THE TEMPLATE IS SPECIAL LAW, IS THAT CORRECT? CORRECT. 
          AND BEFORE, I THINK 2009, RIGHT NOW, BEFORE 2019, YOU COULD CREATE A MANAGEMENT DISTRICT WITH AS LITTLE AS, UH, I, I I DON'T THINK THERE'S REALLY ANY LIMIT ON HOW MANY PEOPLE IT TOOK TO CREATE ONE. 
          ARE YOU FAMILIAR WITH THAT? YEAH. 
          I MEAN, THERE'S REALLY NO LIMITATION. 
          IT CAN BE A SINGLE LANDOWNER THAT PETITIONS THE BODY FOR CREATION, RIGHT. 
          OR, YOU KNOW, ASKS THE, FOR THE BILL TO BE PASSED TO CREATE THE DISTRICT AND YOURS, THE ONES THAT I'VE SEEN YOU REPRESENT, OR FOR NEW, WHERE THERE'S REALLY JUST ONE SINGLE LANDOWNER. 
          YES. 
          OKAY. 
          AND SO HE, THAT, THAT WANTS TO DO THE DEVELOPMENT, WHERE I HEAR, AND WHERE MY CONCERN IS, IS WHEN THE LAW ALLOWED THE CREATION OF JUAN IN A EXISTENT AREA THAT HAD BILLIONS OF DOLLARS OF DEVELOPMENT WITH HUNDREDS, IF NOT THOUSANDS OF BUSINESS OWNERS, BUT YOU COULD CREATE IT WITH ONLY A HANDFUL OF SIGNATURES THROUGH SPECIAL LAW. 
          BUT YET TO DISBAND IT, IT TOOK 66% OF THAT ASSESSED VALUE TO DISBAND. 
          AND THAT'S NOT THE TYPE OF SITUATION THAT YOU'RE DESCRIBING IN MANAGEMENT DISTRICTS THAT YOU REPRESENT. 
          I MEAN, THE, THE DISTRICTS THAT I REPRESENT, YOU KNOW, NORMALLY HAVE LESS OWNERS AT THE BEGINNING. 
          YEAH. 
          CERTAINLY ONE, YOU KNOW, ONE OR A HANDFUL. 
          UH, AND THEN LATER ON, YOU KNOW, ONCE THERE ARE HOMEOWNERS THERE, THERE ARE BUSINESSES THERE, THEN THEY'LL HAVE MORE OWNERS. 
          AND CURRENTLY IT'S 66%. 
          NOW, WHAT, WHAT IS YOUR OPINION OF MAKING IT 50% PLUS ONE IF LATER ON TO, BECAUSE THE ONES YOU'RE FORMING HAVE A 66% DISBANDING OR DISSOLUTION 
          [03:20:01]
REQUIREMENT, RIGHT? MM-HMM . 
          DO YOU HAVE A PROBLEM IF THAT TEMPLATE WAS CHANGED TO A LOWER NUMBER? WELL, I THINK THAT, I THINK THE REASON, AND THIS IS SPECULATION ON MY PART 'CAUSE I DIDN'T WORK ON THE ORIGINAL MANAGEMENT DISTRICT STATUTE, BUT I THINK PART OF THE REASON THAT WAS THERE IS YOU CAN HAVE, YOU CAN HAVE VERY LARGE LANDOWNERS THAT OWN A LOT OF PROPERTY WITHIN A DISTRICT, AND THEN THEY CAN THEN, YOU KNOW, IF YOU HAVE ONE LANDOWNER THAT OWNS A LOT OF PROPERTY OR HAS A VERY HIGH VALUE PROPERTY, THEN THEY CAN DISSOLVE THE DISTRICT WITHOUT TAKING INTO ACCOUNT THE SMALLER OWNERS. 
          SO, YOU KNOW, I DON'T, I DON'T FEEL THAT THERE'S, I I DON'T PERSONALLY HAVE A VERY STRONG OPINION ONE WAY OR THE OTHER, BUT I COULD SEE WHY THE STATUTE WAS WRITTEN THAT WAY, ESPECIALLY IF IT'S BRINGING IN A LOT OF DIFFERENT TYPES OF OWNERS, UH, IN A EXISTING AREA. 
          UM, YOU KNOW, IN, IN MY EXAMPLES, NORMALLY, YOU KNOW, WE START OUT WITH ONE LANDOWNER, WE DEVELOP IT, THE BONDS ARE ISSUED FOR INFRASTRUCTURE. 
          THE DISTRICT CANNOT BE DISSOLVED WHILE THE, WHILE THE BONDS ARE OUTSTANDING. 
          SO AFTER THE BONDS ARE OUTSTANDING, YOU KNOW, YOU WOULD HAVE, UM, YOU WOULD HAVE THE CITIZENRY AVAILABLE TO MAKE THE CHOICE OF WHETHER THEY WOULD DISSOLVE IT OR WHETHER IT WOULD STAY, UM, WHETHER IT WOULD STAY, UH, IN, IN PLACE. 
          AND NORMALLY IF YOU DO THAT, YOU KNOW, YOU COULD HAVE THE DISTRICT BOARD, WHICH IN MY EXAMPLE, ARE ELECTED OFFICIALS THAT ARE ELECTED BY THE PEOPLE THAT LIVE WITHIN THE MANAGEMENT DISTRICT, SIMILAR TO HOW A MUD WOULD OPERATE, THEN, YOU KNOW, THEN THEY WOULD MAKE THE DECISION AS TO WHETHER THE, THE DISTRICT CONTINUES. 
          BECAUSE MY ISSUE IS NOT WITH THE ABILITY TO CREATE MANAGEMENT DISTRICTS. 
          'CAUSE MANY OF 'EM SERVE A GOOD PURPOSE. 
          AND, AND, AND WE NEED THAT TOOL TO CONTINUE ON. 
          IT'S JUST HOW DO YOU GET OUT OF A BAD MANAGEMENT DISTRICT? AND THAT IS WHAT I'M TRYING TO SOLVE. 
          MM-HMM . 
          OR ADDRESS IS HOW DO AND, AND NOT IN THE SITUATION, YOU KNOW, YOU BRING A GOOD POINT WHERE MAYBE AT A CERTAIN SIZE, MAYBE IT DOES STAY AT THE TWO THIRDS, BUT AT SOME POINT WHEN YOU HAVE A MANAGEMENT DISTRICT THAT HAS THOUSANDS OF BUSINESS OWNERS, AND IF 50% OF THEM DECIDE THEY WOULD LIKE TO DISBAND, WHY IS THAT? I MEAN, THAT JUST SEEMS TO BE SO AMERICAN , EVERY ELECTED OFFICIAL CAN BE VOTED OUT OF OFFICE AT 50% PLUS ONE. 
          AND IF YOU GOT A BAD POLITICIAN, THEN 50% PLUS ONE, THEY'RE GONE. 
          SO WHAT'S SOMEWHERE IN BETWEEN 50% AND 66 SEEMS TO BE A, DOESN'T SEEM TO BE ASKING A WHOLE LOT. 
          AND MAYBE THERE NEEDS TO BE A PROVISION IN CERTAIN CIRCUMSTANCES, LIKE WHAT YOU'VE STATED, AND WHICH THERE ALREADY IS. 
          IF YOU HAVE A BOND, YOU CAN'T DISBAND UNTIL THAT BOND IS PAID OFF. 
          BUT, UH, UH, THAT'S WHAT I WOULD LIKE TO TRY TO ADDRESS. 
          THANK YOU, REPRESENTATIVE. 
          BUT DID YOU, OKAY, MR. MARTIN, THANK YOU AGAIN FOR BEING HERE TODAY AND YOUR TESTIMONY. 
          YES. 
          THANK YOU VERY MUCH. 
          CHAIR CALLS VAL ARTHUR, VAL PERKINS FROM ALLEN BOONE HUMPHREYS ROBINSON, THANK YOU FOR BEING HERE TODAY. 
          MR. PERKINS, IF YOU COULD JUST STATE YOUR NAME. 
          YES. 
          SIT. 
          I'M SORRY. 
          IS OKAY IF I SIT? PLEASE DO. 
          IF YOU COULD JUST PLEASE STATE YOUR NAME, WHO YOU REPRESENT, AND BEFORE YOU BEGIN YOUR TESTIMONY, THANK YOU FOR BEING PATIENT TODAY. 
          SORRY ABOUT THAT. 
          CAN YOU HEAR ME ALL RIGHT? WE'RE FINE. 
          PULL THE MARK. 
          I THANK MS. LOPEZ. 
          ANGELINA, MAYBE IF WE CAN PULL THE MIC DOWN FOR THE MR. UM, PERKINS, PLEASE. 
          THANK YOU. 
          PLEASE BEGIN WHEN YOU'RE READY, MR. PERKINS. 
          THANK YOU MR. CHAIRMAN, MEMBERS OF THE COMMITTEE. 
          MY NAME IS VAL PERKINS. 
          I'M A LAWYER IN HOUSTON AND AUSTIN. 
          UH, I THOUGH I WORK VERY CLOSELY WITH THE LAWYERS AT THE ALI BOONE HUMPHREYS AND ROBINSON FIRM. 
          I'M NOT A PARTNER THERE. 
          I'M A LAWYER WITH, UH, THE, UH, FOLEY AND NER, LLP FIRM, AS I SAY, BOTH HERE IN HOUSTON AND AUSTIN. 
          UM, I'M INVOLVED IN, I WAS INVOLVED, UH, WITH THE OTHER LAWYERS THAT WORK ON THESE MATTERS WITH THE, WITH THE DEVELOPMENT OF THE TEMPLATE AND, UH, AND, AND, AND THE CHANGES THAT HAVE BEEN MADE TO IT OVER THE YEARS. 
          AND, UM, I I WAS PREPARED TO SPEND SOME TIME TALKING ABOUT THE TEMPLATE AND THE HISTORY OF IT AND THINGS LIKE THAT. 
          YOU, Y'ALL HAVE GONE THROUGH A LOT OF THAT ALREADY TODAY. 
          I DON'T WANNA BE REPETITIVE, BUT ONE THING I DO WANNA STRESS THOUGH IS THAT THE, THE, THE MUNICIPAL UTILITY DISTRICT TEMPLATE, WHICH THE MUD TEMPLATE, WHICH IS THE FIRST TEMPLATE THAT CAME ABOUT, UH, THAT THE PARTIES WORKED ON, UH, THAT WAS A TEMPLATE THAT DESCRIBED GENERALLY HOW A MUD IS FORMED, WHICH IS PRETTY BASIC IN, IN THE SENSE THAT IT'S, 
          [03:25:01]
IT'S, MOST OF THE BILLS ARE PRETTY MUCH THE SAME FOR MMDS MUNICIPAL MANAGEMENT DISTRICTS. 
          THE ISSUE IS HARDER BECAUSE THERE ARE SO MANY DIFFERENT TYPES OF DISTRICTS FORMING SO MANY DIFFERENT WAYS WITH SO MANY DIFFERENT NEEDS THAT WE WANTED TO BE SURE THAT WE, WE, WE DID NOT, UH, ELIMINATE THE ABILITY OF SOMEONE TO GET A PARTICULAR POWER, UH, OR, OR ABILITY TO DO SOMETHING IN A BILL JUST BY HAVING A TEMPLATE THAT SAID THAT DIDN'T INCLUDE THAT IN THERE. 
          SO WE HAD DEVELOPED BEFORE THE TEMPLATE, WHAT WE CALL STANDARD LANGUAGE FOR A NUMBER OF DIFFERENT TYPES OF, OF, OF POWERS, FOR EXAMPLE, MANY, MANY OF THESE DISTRICTS LOOK, WANNA HAVE NAVIGATION DISTRICT POWER SO THEY CAN, THEY CAN BUILD PEERS AND BULKHEADS AS PART OF A DEVELOPMENT ALONG THE WATER. 
          THAT'S SOMETHING THAT WE GIVE A LOT OF OUR DISTRICTS NOT IN, NOT IN THE TEMPLATE BECAUSE WE DON'T DO IT ALL THE TIME. 
          BUT IT'S, IT'S THE KIND OF THING THAT IF YOU CAN SHOW THAT YOU NEED IT, GENERALLY THE COM THE COMMITTEE AND THE HOUSE AND THE STANDARD HAVE GIVEN IT TO US. 
          SO, AND THERE ARE A NUMBER OF OTHER, OTHER, UH, UH, EXAMPLES OF THAT THAT I WANTED TO STRESS THAT, THAT, THAT NEEDED TO BE LOOKED AT. 
          LEMME SUGGEST THAT THE COMMITTEE, IN INCLUDING IN ADOPTING THE, THE TEMPLATE THAT YOU ADD A CHECKLIST, UH, TO THE TEMPLATE, UH, WHICH, WHICH MO COMMITTEES HAVE DONE IN THE PAST, WHEREBY, UH, AN IN, UH, A DEVELOPER OR A THEIR CLIENT, UH, EXCUSE ME, THE DEVELOPER OR THEIR LOBBYIST OR LAWYER, UH, HAVE TO GO THROUGH THE BILL AND EXPLAIN IN, IN A CHECKLIST IF THEY'RE ABIDE BY THE TEMPLATE OR IF THEY HAVE ADDITIONAL POWERS AND THEY EXPLAIN WHAT THOSE ADDITIONAL POWERS ARE AND HOW AND WHY THEY NEED THEM. 
          AND GENERALLY WHAT'S, WHAT'S WORKED WELL IS, IS, IS, IS IF I COME INTO THE, TO THE COMMITTEE WITH A BILL THAT CONTAINS A NUMBER OF DIFFERENT POWERS THAT ARE NOT IN THE TEMPLATE, I NEED TO JUST MAKE SURE THE COMMITTEE KNOWS THAT BY FILLING OUT THE CHECKLIST AND BE SURE THAT I EXPLAIN WHY WE NEED THOSE POWERS. 
          AND THEN IF THE, THE COMMITTEE AGREES WITH THAT, THEY CAN PASS THE BILL ONTO TO THE FULL HOUSE. 
          UH, AS I'M HAPPY TO ANSWER ANY QUESTIONS ABOUT, ABOUT THE 10 FOOT, I DON'T WANNA TAKE OF ANY MORE OF YOUR TIME. 
          UH, THAT WAS JUST WHAT THE MAIN THING I WANTED TO STRESS. 
          THANK YOU FOR YOUR INPUT AND THANK YOU FOR THE RECOMMENDATION OF A CHECKLIST. 
          THAT'S SOMETHING WE'LL DEFINITELY TAKE A LOOK AT, SEE WHAT WE CAN BE DONE. 
          MAYBE THAT DOESN'T NEED A LEGISLATIVE FIX NECESSARILY. 
          MAYBE THAT COULD BE DONE INTERNALLY, UH, WITHIN THE AGENCY, BUT, UH, WE CAN CONTINUE TO VISIT ABOUT THAT, UM, AFTER THIS COMMITTEE HEARING. 
          SO MEMBERS, ANY QUESTIONS? YEAH, A COUPLE. 
          GO AHEAD. 
          REPRESENTATIVE GATES ON SOME OF THESE EVERY UNDER THE CURRENT TEMPLATE, WHEN YOU FORM ONE, HOW ARE THE BOARD OF DIRECTORS CHOSEN? SORRY, SAY AGAIN? HOW ARE THE BOARD OF DIRECTORS CHOSEN? THEY'RE, THEY'RE, THEY, WE FOLLOW THE TIP FOLLOWS THE, THE GENERAL LAW CHECK 3 75, WHICH, WHICH IS WHICH, WHICH HAS THEM BASICALLY APPOINTED APPOINTED. 
          UH, AND, AND THEN THEY STAY ON, THEY STAY ON BOARD. 
          THEY'RE NOT NOT ELECTED. 
          UM, WE DO HAVE SOME SITUATIONS, AND AGAIN, THIS IS WHY YOU NEED, YOU NEED TO HAVE THE ABILITY TO GO OUTSIDE THE TEMPLATE. 
          SOME SITUATIONS WHERE A PARTICULAR DEVELOPER OR A PARTICULAR ENTITY THAT THAT WANTS THE DISTRICT CREATED HAS WANTS THE DIFFERENT WAYS TO, TO, TO UH, GET THE BOARD OF DIRECTORS SET UP. 
          FOR EXAMPLE, I DID A DISTRICT IN SUGAR LAND COVERING THE SMART FINANCIAL CENTER, UH, THAT, THAT I KNOW YOU'RE AWARE OF REPRESENTATIVE GATES, UH, ON, ON 59 THERE. 
          AND THEY WANTED THE ABILITY TO HAVE, IT WAS JUST A, JUST A, UH, A, A DISTRICT COVERING THE SMART FINANCIAL CENTER AND ADJACENT LAND THAT WAS GONNA BE DEVELOPED. 
          THE LANDOWNER AND THE CITY WANTED THE ABILITY TO HAVE, TO HAVE THE BOARD BE REPRESENTATIVE OF THE CITY AND THE LANDOWNER. 
          AND SO THEY HAD A DIFFERENT, DIFFERENT WAY TO NAME THE DIRECTORS. 
          AND WE PUT THAT IN THE BILL EXPLAINED WHY WE NEEDED IT. 
          'CAUSE IT WAS ONLY GONNA BE FOR THOSE 2, 2 2 TRACKS OF LAND. 
          AND THE COMMITTEE WAS FINE WITH IT AND PASSED IT ON. 
          SO AS I SAY, WE HAVE DIFFERENT WAYS OF DOING IT. 
          WE, WE DO THAT BY LEGISLATION. 
          OTHERWISE YOU JUST FOLLOW THE GENERAL LAW. 
          THAT MANAGEMENT DISTRICT THAT YOU'RE DESCRIBING, IT ONLY HAS TWO OWNERS. 
          YES. 
          IN THIS CASE BASICALLY CASE A SMART FINANCIAL CENTER AND RIGHT. 
          ONE WAS THE CITY AND THE OTHER WAS, WAS A, WAS A DEVELOPER. 
          NO, I'M NOT TALKING ABOUT THAT KIND OF MANAGEMENT DISTRICT THEN. 
          I'M TALKING ABOUT THESE OTHER, LIKE THE ONE THAT WAS DISCUSSED TODAY. 
          DO YOU KNOW IF YOU CREATE SOMETHING IN THE EXISTING AREA, HOW DO YOU, THE BOARD OF DIRECTORS OF AN EXISTING MANAGEMENT DISTRICT, DO YOU KNOW HOW THEY TYPICALLY ARE PICKED? YEAH, IF YOU DON'T MIND, LET ME, LET ME LOOK AT CHAPTER 3 75, WHAT IT SAYS ABOUT THAT. 
          OKAY. 
          I'VE GOT, I'VE GOT IT RIGHT HERE, TOO MUCH PAPER, BUT YOU CAN TELL THAT I'M OLD BY THE FACT THAT I HAVE ALL THIS PAPER. 
          3 75 0.062. 
          YEP, I'VE GOT IT RIGHT HERE. 
          I, 
          [03:30:02]
THE, THE, UH, INITIAL DIRECTORS ARE, ARE, UM, DIVIDED INTO TWO GROUPS. 
          AND THE GENERAL OP PROVIDES, THEY MUST BE FIVE, UH, AND NO MORE THAN 30. 
          AND THEY HAVE TO BE, TO BE QUALIFIED AS A, AS A, AS A DIRECTOR, YOU HAVE TO BE AN OWNER OF PROPERTY IN THE DISTRICT, AN OWNER OF STOCK OR OTHER, UH, WHETHER BENEFICIAL OTHERWISE OF A CORPORATE OWNER OR PROPERTY DISTRICT OWNER OF BENEFICIAL INTEREST IN TRUST THAT OWNS PROPERTY DISTRICT OR AN AGENT OF THOSE, OF THOSE INDIVIDUALS. 
          AND, UH, AND THEN THE, THE DIRECTORS THEMSELVES, UH, RECOMMEND THE FUTURE DIRECTORS. 
          AND THESE GOTTA BE APPROVED BY THE, BY BY THE CITY. 
          THAT, THAT, UH, IS, IS AUTHORIZING THE, THE, THE DISTRICT. 
          SO THE ENTITY THAT IS MANAGING THE DISTRICT AFTER THE INITIAL BOARD, THE MAN, THE COMPANY THAT'S MANAGING THE DISTRICT DETERMINES WHO THEY WANT TO HAVE ON THE BOARD. 
          AND THEN THAT SLATE IS HANDED TO, SAY, THE CITY OF HOUSTON TO VOTE ON YY IS THAT CORRECT? LEMME SAY REPRESENTATIVE. 
          I, I, I DON'T, I DON'T REPRESENT DISTRICTS ONCE THEY'RE ONGOING. 
          I FORMED 'EM AT THE LEGISLATURE AND, AND FAMILIAR WITH THE TEMPLATE BECAUSE OF THAT AND HAVE WORKED ON TAMPA BECAUSE OF THAT. 
          I CAN ANSWER YOUR QUESTIONS AS BEST I CAN, BUT THEY MAY NOT BE COMPLETELY ACCURATE WITH, WITH HOW THE DISTRICT THEMSELVES WORK. 
          'CAUSE I DON'T REPRESENT THEM ON AN ONGOING BASIS. 
          OKAY. 
          TH THIS IS THEN I'LL JUST SUMMARIZE WHAT PART OF THE COMPLAINT IS, IS THAT THROUGH CHAPTER 3 75 AND THAT BECOMES, YOU KNOW, I THINK PART OF THE TEMPLATE AND IT FOLLOWS THAT IN EXISTING MANAGEMENT DISTRICTS, THAT WHOEVER IS DOING THE CON MANAGING OF IT, THEY PICK WHO THE, THE BOARD OF DIRECTORS ARE AND THEY GIVE A SLATE TO THE GOVERNOR CITY AT WHERE IF IT'S IN SAN ANTONIO OR HOUSTON OR WHEREVER, AND THEY VOTE ON IT BY SLATE SO THAT THE PEOPLE WHO ACTUALLY PAY THE ASSESSMENT NEVER HAVE A VOICE IN ACTUALLY ELECTING THEIR OWN BOARD OF DIRECTORS. 
          WELL, I THINK THAT THE, THE PEOPLE WHO PAY THE ASSESSMENTS ARE GENERALLY THE BUSINESS OWNERS IN, IN THE DISTRICT. 
          GENERALLY THE RESIDENT, IF THEY'RE, IF THEY'RE RESIDENTIAL, UH, UNITS IN THE DISTRICT, THE RESIDENTS DON'T, THEMSELVES DON'T PAY THAT, DON'T PAY THE ASSESSMENT. 
          JUST THE, THE BUSINESS OWNERS DO. 
          SO GENERALLY, AS I UNDERSTAND HOW THEY OPERATE THE BUS, THOSE BUSINESS OWNERS HAVE A SAY IN WHAT HAPPENS IN THE DISTRICT. 
          THEY CAN COME DOWN TO THE CITY WITH ANY COMPLAINTS THEY MIGHT HAVE OR TO TO, TO, TO, TO SUPPORT THE SLATE OF SLATE OF DIRECTORS THAT THE BOARD IS CONSIDERING. 
          BUT IF THEY LIVE IN THAT MANAGEMENT DISTRICT AND THEY HAVE A BUSINESS IN THAT MANAGEMENT DISTRICT, THEY HAVE NO VOICE TO VOTE, DO THEY? WELL, IT'S NOT, IT'S, IT'S NOT AN ELECTION. 
          THEY, THEY, THEY, THAT'S RIGHT. 
          IT'S, I THINK TAXATION WITHOUT REPRESENTATION. 
          THEY CAN BE TAXED, BUT THEY CAN'T REPRESENT THEMSELVES AND VOTE IN OR OUT. 
          WELL, NO, THEY'RE BEING ASSESSED AN AMOUNT THAT USUALLY THEY THEMSELVES HAVE AGREED TO AND TAKEN IT TO THE CITY FOR APPROVAL. 
          AGAIN, REMEMBER THE CITY'S GOTTA APPROVE WHATEVER THEY DO. 
          IT'S NOT JUST THE BOARD SAYS, WE'RE GONNA ASSESS YOU THIS AMOUNT AND THEY'LL TAKE IT OR LEAVE IT. 
          THEY, THEY GENERALLY ARE, ARE THE ONES THAT JUST THAT, THAT COME UP WITH THE ASSESSMENT AND TAKE IT TO THE CITY FOR APPROVAL. 
          OKAY. 
          THAT, THAT BRINGS UP ANOTHER ISSUE. 
          OKAY. 
          THE ASSESSMENT, THE BOARD WHO IS UNELECTED, THEY ARE THE ONES THAT DECIDE WHAT THE ASSESSMENT IS. 
          AND WHILE THE PEOPLE WHO ARE PAYING IT MIGHT CAN VOICE SOMETHING, THEY AGAIN HAVE NO VOTE IN WHAT THEY'RE GONNA BE ASSESSED. 
          IT'S NOT AN ELECTION. 
          THE PEOPLE, THE PEOPLE, IF, IF SOMEONE HAS A COMPLAINT ABOUT THE ASSESSMENT LEVEL AND THEY CAN, THEY THEY FEEL THAT THE BOARD IS NOT HEARING IT, THEY CAN COME TO THE CITY AND COMPLAIN. 
          THE CITY WILL DO SOMETHING ABOUT IT. 
          THEY CAN COME AND COMPLAIN. 
          AND IF THE CITY DOESN'T DO SOMETHING ABOUT IT, THEN, THEN THE CITY'S DETERMINED THAT THE COMPLAINT IS NOT, IS NOT A CORRECT COMPLAINT. 
          OR THEY COULD USE TO PROVISION TO DISBAND A BAD MANAGEMENT DISTRICT IF THEY FEEL IT'S GOING AGAINST THEIR INTEREST. 
          THAT'S RIGHT. 
          IF A, IF A, IF A, IF A TWO THIRDS MAJORITY, TWO THIRDS OF OF THE OWNERS WANT TO DISSOLVE THE DISTRICT, THEN THEY CAN DISSOLVE IT. 
          THAT'S CORRECT. 
          AND SO THAT SEEMS TO BE THE ONLY WAY THEY CAN'T VOTE A BOARD OF DIRECTOR OUT, THE ONLY THING THAT THEY, AND THEY CAN'T VOTE FOR AGAINST AN ASSESSMENT. 
          THE ONLY CHANCE THEY EVER HAVE TO MAKE A CHANGE WITH THEIR VOTE IS TO VOTE TO DISBAND. 
          THAT'S IT. 
          AND YET, IN ALL OF AMERICAN DEMOCRACY, 
          [03:35:01]
IF WE EVER WANNA VOTE OUT ANYWHERE FROM THE PRESIDENT OF THE UNITED STATES DOWN TO THE LOWEST POSITION, IT TAKES 50% PLUS ONE. 
          BUT YET, MANAGEMENT DISTRICTS IN THE STATE OF TEXAS REQUIRES 66% TO VOTE OUT OF OFFICE. 
          IT, IT'S, IT'S NOT A VOTE OUT OF OFFICE OFFICE. 
          IT'S, IT'S A, A D DISBAND. 
          IT'S NOT A VOTE. 
          IT'S NOT THE, THE, WELL LEMME SAY THIS ABOUT THE DISSOLUTION NUMBER. 
          THIS TWO THIRDS NUMBER DIDN'T JUST CALL IT THIN AIR. 
          THE LEGISLATURE DECIDED THAT IN, IN 2019, IT'S JUST THREE YEARS OLD. 
          THAT WAS, THAT WAS PUT IN THERE BY A BILL THAT, THAT, UH, REPRESENTATIVE DON DENNIS PAUL FILED THAT, UM, THAT JANE NELSON SPONSORED IN THE SENATE. 
          THAT SET THE TWO THIRD SET, THE TWO THIRDS NUMBER REPLACING THE OLD SIX, 6% NUMBER, WHICH HAD REPLACED THE 75% NUMBER. 
          SO WE'VE ALREADY COME DOWN TO, TO, TO, TO TWO THIRDS. 
          AND WE DID THAT IN 2019. 
          CERTAINLY THE COMMITTEE HAS, HAS GOT THE ABILITY TO LOOK AT THIS ANYTIME THEY WANT TO. 
          BUT IT SEEMS LIKE WE WE'RE LOOKING AT EVERY LEGISLATIVE SESSION AND THE LEGISLATION MADE A DETERMINATION JUST TWO, TWO AND A HALF SESSIONS AGO THAT THEY WANTED TO BE TWO THIRDS. 
          SO I, THAT'S WHY I DON'T HAVE A PROBLEM WITH TWO THIRDS REQUIREMENT. 
          ACTUALLY, I TALKED TO DENNIS PAUL AND HE ACTUALLY WANTED 50% AND HE HAD TO COMPROMISE FOR NOW TO TAKE IT FROM 75 TO 66% OR TWO THIRDS. 
          AND SO PART OF THIS CHARGE IN DEALING WITH HIS TEMPLATE IS TO SEE IF THERE'S FAIRNESS, IF THERE'S A LEGITIMATE BASIS OF REDUCING THAT FROM 66 MORE TO A MORE REALISTIC, BECAUSE WE'RE NOT TALKING ABOUT TO VOTE SOMEONE OUT OF OFFICE. 
          YOU, YOU CAN HAVE, LET'S SAY A STATE REP. 
          MY DISTRICT IS 200,000 PEOPLE NOW TO VOTE ME IN OR OUT OF OFFICE. 
          YOU DON'T NEED 50% PLUS ONE OF THE 200. 
          YOU JUST NEED 50% PLUS ONE OF THOSE THAT ACTUALLY SHOW UP AT THE POLLS. 
          SO YOU COULD VOTE SOMEONE OUT OF OFFICE WITH A FEW THOUSAND VOTES IN A DISTRICT OF 200,000. 
          BUT IN A MANAGEMENT DISTRICT, IF YOU HAVE $2 BILLION OF ASSESSED VALUE, YOU'VE GOT TO MORE THAN JUST VOTE. 
          YOU GOTTA GET A BUSINESS OWNER TO SIGN A PETITION, BE NOTARIZED, AND YOU GOTTA HAVE TWO THIRDS OF EVERY SINGLE BUSINESS IN THAT ENTIRE DISTRICT, NOT JUST TWO THIRDS OF WHO WANTED TO SHOW UP, BUT TWO THIRDS OF THE ENTIRE THING. 
          IT THE BAR IS SO HIGH THAT'S VIRTUALLY IMPRACTICAL, IMPOSSIBLE TO REACH TWO THIRDS, ESPECIALLY WHEN SOME OF THESE BOARDS PUT THE LARGEST PROPERTY OWNER ON THE BOARD, WHICH MIGHT BE LET'S SAY HERMAN HOSPITAL, HBU UNIVERSITY. 
          THEY MAY JUST BY THEMSELVES COMPRISE 20, 25% OF THE ENTIRE DISTRICT. 
          YOU THEN LEAVE THE THOUSANDS OR HUNDREDS, IF NOT THOUSANDS OF BUSINESS OWNERS, YOU ALMOST ARE REQUIRING A HUNDRED PERCENT PARTICIPATION TO EVER REACH THE TWO THIRDS. 
          I THINK IT'S UNFAIR AND IMPRACTICAL AND ALMOST A VIRTUAL IMPOSSIBILITY. 
          AND THOSE THAT WERE BEHIND IT KNEW THAT. 
          AND SO I DON'T THINK SO. 
          I THINK THERE'S A GOOD BASIS TO REDUCE THAT TO A LOWER NUMBER THAN TWO THIRDS. 
          WE GOT THANK YOU REPRESENTATIVE GATES. 
          SEVERAL. 
          THANK YOU. 
          OKAY, MR. PERKINS, FOR YOUR TESTIMONY AND FOR STAYING UP HERE AND ANSWERING THE QUESTIONS. 
          THANK YOU VERY MUCH, MR. CHAIRMAN. 
          THANK YOU. 
          REPRESENTATIVE CHAIR CALLS HOBBY AREA DISTRICT CHARLES WATTS. 
          MR. WATTS, THANK YOU FOR BEING HERE TODAY AND BE FOR BEING PATIENT. 
          IF YOU COULD PLEASE STATE YOUR NAME AND WHO YOU REPRESENT AND YOU BEGIN. 
          YOU CAN BEGIN YOUR TESTIMONY. 
          HELLO. 
          THE CHAIR'S INTENT TO GAVEL OUT BY THREE 30, SO PLEASE KEEP THAT IN MIND. 
          YES, SIR. 
          , I'LL BE BRIEF. 
          UM, HELLO CHAIRMAN CORTEZ AND THE CHAIRMAN, UH, COMMITTEE MEMBERS. 
          THANK YOU FOR ALLOWING ME TO SPEAK TODAY. 
          MY NAME IS CHARLES WATTS. 
          I'M THE GENERAL MANAGER OF THE MARRIOTT HOUSTON SOUTH. 
          AND I VOLUNTEER AND SERVE AS THE CHAIRMAN OF THE HOBBY AREA DISTRICT THAT PROVIDES MANY SERVICES TO THE HOBBY AREA AIRPORT AREA IN HOUSTON. 
          ALL OF OUR BOARD MEMBERS REPRESENT THE BUSINESSES IN OUR DISTRICT. 
          WE PAY ANNUAL ASSESSMENTS TO THE DISTRICT TO PAY FOR SERVICES AND WE REINVEST THOSE, UM, FUNDS BACK INTO OUR COMMUNITY, BACK INTO THE HOBBY AREA DISTRICT. 
          SOME EXAMPLES OF SOME OF THE SERVICES WE HAD SUPPLIED. 
          UM, $812,000 
          [03:40:01]
WAS SPENT FOR PUBLIC SAFETY. 
          THESE WERE OFF-DUTY POLICE OFFICERS. 
          WE DO NOT HAVE SECURITY GUARDS. 
          WE HAVE OFF-DUTY POLICE OFFICERS. 
          WE HAVE CONSTABLES IN THE JAVIER DISTRICT. 
          UM, THEY HAVE, THEY PUT 28,816 MILES DRIVEN IN OUR DISTRICT. 
          UM, 6,281 CALLS, 5,244 BUSINESS CHECKS WITH 217 REPORTS FILED. 
          WE HAVE CONTRACTED FOUR DEPUTIES CONSTABLES WITH 300,000 IN FUNDING. 
          THE AVERAGE RESPONSE TIME FOR THESE CONSTABLES IS FOUR, FOUR MINUTES, FOUR, FOUR MINUTES AND 12 SECONDS. 
          AND THEY'VE DONE 232 BUSINESS CHECKS. 
          WE HAVE ADDED ADDITIONAL CAMERAS, MOBILE CAMERAS THAT ARE AVAILABLE TO ANY PROPERTY OWNER, ANY BUSINESS THAT'S IN OUR DISTRICT. 
          WE HAVE FIVE SOLAR POLE CAMERAS THAT WE, THAT ARE MOVE AROUND ON THREE MONTHS BASIS THAT HELPS ELIMINATE THE ILLEGAL DUMPING IN OUR AREA. 
          WE HAVE CRIME PREVENTION SIGNAGE, UM, THAT WE HAVE GIVEN TO OUR BUSINESS OWNERS COMPLIMENTARY TO AT TELL 'EM SO THAT WE TRY TO REDUCE THE CAR THEFT. 
          YOU KNOW, IF YOU DON'T SEE IT, PEOPLE WON'T BREAK INTO YOUR CAR MORE THAN LIKELY IF YOU DON'T HAVE, IF YOU HAVE A SIGN. 
          AND WE HAVE NO SOLICITATION SIGNS, UM, GRAFFITI ABATEMENT. 
          WE'VE PAID $38,000 TO CLEAN UP THE GRAFFITI IN OUR NEIGHBORHOODS IN THE HAER DISTRICT. 
          WE HAVE CRIME PREVENTION, UM, PRESENTATIONS, HURRICANE PREPAREDNESS, HUMAN TRAFFICKING, ACTIVE SHOOTER, CATALYTIC CONFER, CATALYTIC CONVERTER, THEFT PREVENTION. 
          ALL OF THESE ITEMS, ONCE AGAIN, ARE OPEN TO ALL OF OUR BUSINESS OWNERS AND THE RESIDENTS IN THE AREA. 
          UM, SO WE HAVE A DISTRICT WEBSITE, WHICH IS H AD DISTRICT.ORG WITH LOTS OF INFORMATION ABOUT THE BOARD, OUR MEETINGS, OUR MEMBERS, OUR FINANCIAL AUDITS, OUR BUDGETS AND THE SERVICES APPLY. 
          AGAIN, THANK YOU FOR THE OPPORTUNITY TO TELL YOU ABOUT THE HOBBY AREA DISTRICT. 
          THANK YOU MR. WATTS. 
          UH, MYSELF AND REPRESENTATIVE GATES, DO YOU HAVE ANYTHINGS? YEAH, A FEW QUESTIONS. 
          SO, UM, YOU'RE ON THE BOARD? YES, SIR. 
          AND SO HOW I DESCRIBED A BOARD ELECTED THE PEOPLE THAT ARE PAYING YOU THE ASSESSMENT, THEY DON'T HAVE A VOICE VOTE. 
          AND THE BOARD, THERE'S NO VOTES FOR ANYONE. 
          NO ONE, THERE IS NO VOTE. 
          THAT'S RIGHT. 
          THERE'S NO VOTE. 
          IT'S APPOINTMENT BY THE STATE. 
          AND IF YOU WANNA RAISE AN ASSESSMENT, WHO DO YOU, WHO DO YOU ANSWER TO? THE CITY OF HOUSTON. 
          THEY'D HAVE TO APPROVE THAT. 
          SO NOT DIRECTLY TO THE PEOPLE. 
          IF, IF YOU TO THE PEOPLE THAT PAY THE ASSESSMENT, THEY DON'T HAVE A VOICE IN HOW MUCH YOU'RE GONNA ASSESS THEM, DO THEY? YES SIR. 
          THEY DEFINITELY HAVE A VOICE, BUT BY A VOTE. 
          BY A VOTE. 
          THEY HAVE A VOICE. 
          WE HAVE OPEN MEETINGS, UM, THAT ARE POSTED HERE AT THE SEA HALL EVERY MONTH. 
          ANYONE'S WELCOME TO COME AND SPEAK. 
          UM, YOU'RE MORE THAN WELCOME OR ANYONE'S MORE THAN WELCOME TO TO JOIN. 
          WE HAVE AN OPEN BOARD SEAT THAT WE'RE, WE NEED ANOTHER BOARD MEMBER. 
          UM, SO THE BOARD IS OPEN. 
          WE ENCOURAGE OUR BUSINESS OWNERS TO BE INVOLVED TO COME TO THE BOARD MEETINGS AND TO JOIN US. 
          BUT CAN THEY VOTE AGAINST THE ASSESSMENT? CAN THEY, DO YOU HAVE TO GO TO THEM WHEN YOU WANT TO INCREASE THE ASSESSMENT BY VOTE? NO, SIR. 
          THERE IS NO VOTE. 
          NO. 
          AND WHOEVER IS ON THAT BOARD, YOU DON'T HAVE TO GO TO THEM AND BE VOTED IN BY THE PEOPLE PAYING THAT ASSESSMENT. 
          IS THAT CORRECT? I'M SORRY. 
          THE PEOPLE ON THE BOARD DON'T HAVE TO GO AND SOLICIT THE VOTE OF THE VERY PEOPLE THAT THEY'RE GONNA HAVE AUTHORITY OVER MONEY. 
          THERE IS NO VOTE. 
          NO SIR. 
          THERE ARE NO VOTES. 
          OKAY. 
          NOW YOU, YOU SAID A LOT OF GREAT THINGS THAT A MANAGEMENT DISTRICT DOES. 
          JUST LIKE EVERY POLITICIAN MAY SAY ALL THE GREAT THINGS THEY DID IN SERVICE, RIGHT? YES, SIR. 
          BUT IF THE PEOPLE DECIDE THAT THEY DON'T LIKE WHAT THAT POLITICIAN DID, EVEN AS GOOD AS THEY CLAIM THEY WERE, THEY CAN BE VOTED OUT OF OFFICE. 
          NOW Y YOU WITH THE MANAGEMENT DISTRICT, I'M NOT A POLITICIAN THOUGH. 
          I UNDERSTAND. 
          AND THE HAVIER DISTRICT IS NOT A POLITICIAN. 
          I UNDERSTAND. 
          IT'S SOMETHING THAT WAS SET UP BY THE GOVERNMENT. 
          I UNDERSTAND. 
          BUT IF YOU'RE DOING ALL THOSE GREAT THINGS, THE ONLY WAY THE PEOPLE CAN VOICE THEIR DISPLEASURE BY VOTE IS TO DISBAND. 
          DO YOU HAVE A PROBLEM IF THE HOBBY IS ABOUT $2 BILLION IN ASSESSMENT? AM I CORRECT ABOUT YES, SIR. 
          OKAY. 
          IF I WERE TO BRING YOU SIGNED PETITIONS OF $1.2 BILLION OF THAT 2 BILLION THAT SAID, WE WANT YOU BOARD 
          [03:45:01]
TO DISBAND, DO YOU HAVE A PROBLEM WITH THAT? YES SIR. 
          BECAUSE THE LAW STATES AT 66% OR THE STATUTE, WHATEVER IT IS. 
          OKAY. 
          AND WOULD YOU HAVE A PROBLEM IF THE LAW WAS REDUCED TO 51%? YES, I WOULD BECAUSE IT'S ALREADY SET UP. 
          IT'S ALREADY SET UP THAT WAY. 
          I DON'T HAVE A REASON TO CHANGE IT. 
          WHY? I SEE. 
          SO JUST, JUST BECAUSE IT'S SET UP, YOU WOULD NOT, YOU WOULD NOT ADVOCATE, YOU WOULD NOT BE SUPPORTIVE OF REDUCING IT IF YOU GAVE ME VERY GOOD REASONS TO DO IT. 
          OF COURSE, I'M AN OPEN-MINDED PERSON. 
          GIVE ME SOME GOOD REASONS TO DO THAT. 
          $1.2 BILLION IN SIGNED PETITIONS OF PEOPLE THAT SAY THEY LIKE TO DISBAND, BUT THAT'S NOT A REASON TO CHANGE THE RULE. 
          GIVE ME A REASON TO CHANGE THE RULE. 
          CHANGE MY MIND ON WHAT? GIMME THE REASON TO ACTUALLY CHANGE A RULE THAT HAS ALREADY BEEN SET UP BY OUR LEGISLATOR LEGISLATURE. 
          AND THEN MAYBE I COULD, YOU COULD TALK ME INTO IT. 
          OKAY. 
          I'M VERY OPEN-MINDED. 
          I'M HERE TO LISTEN TO YOUR COMPLAINTS. 
          IF YOU HAD AN ISSUE TO BRING TO THE BOARD. 
          MY CELL NUMBER IS 8 3 2 2 6 0 8 1 5 5. 
          I'M AT THE HOTEL 10 HOURS A DAY. 
          I WILL TAKE, I MET WITH YOUR, WHENEVER YOU SENT PEOPLE OUT TO GET TO, KIND OF COERCE PEOPLE INTO SIGNING THE PETITION. 
          I ACTUALLY TALKED TO THE TWO YOUNG ADULTS AND DIDN'T KNOW WHAT THEY WERE TALKING ABOUT AS THEY WERE FORCING THEM, HANDING ME THE PAPER, TRYING TO GET ME TO FORCE IT. 
          I DIDN'T BECOME INVOLVED WITH THE HOBBY AREA DISTRICT BOARD UNTIL YOUR REPRESENTATIVES CAME AND TRIED TO COERCE ME INTO SIGNING SOMETHING THAT, OH, JUST SIGN IT. 
          YOU DON'T. 
          AND I'M LIKE, THAT'S WHAT DO YOU, THAT'S HOW I LEARNED ABOUT THE BOARD WAS WHENEVER YOUR REPRESENTATIVES CAME. 
          SO I'M VERY OPEN-MINDED. 
          THEY PRESENTED ME WITH SOMETHING THAT I DIDN'T LIKE, SO THEN I LEARNED MORE ABOUT IT. 
          OKAY. 
          I YOU'RE AGAINST RED REDUCTION FROM THE TWO THIRDS TO A, ANYWHERE IN BETWEEN 50% TO TWO THIRDS OR WOULD YOU FIND ACCEPTABLE? I FIND 66. 
          GREAT. 
          NO REASON TO CHANGE IT UNLESS YOU CAN GIVE, IF YOU GIVE ME SOME REASONS WHY IT SHOULD BE CHANGED, THEN I WOULD BE OPEN TO CHANGING IT. 
          BUT I THINK THE WITNESS HAS TESTIFIED THAT HE WOULD BE POTENTIALLY OPEN TO IT, BUT HE IS CURRENTLY OKAY WITH STATE LAW. 
          UM, DID YOU HAVE ANY FURTHER QUESTIONS, REPRESENTATIVE GATES? NO. 
          THANK YOU SO MUCH. 
          THANK FOR BEING HERE. 
          THANK YOU FOR TAKING OUR QUESTIONS. 
          OKAY. 
          FINAL TWO SPEAKERS IF YOU CAN PLEASE COME FORWARD. 
          CHAIR CALLS JAMES BIGHAM, FOLLOWED BY DAPHNE SCARBOROUGH. 
          JAMES HAS LEFT. 
          JAMES HAS LEFT. 
          THANK YOU. 
          FINAL SPEAKER FOR TODAY IS DAPHNE SCARBOROUGH. 
          MA'AM, IF YOU COULD PLEASE STATE YOUR NAME, WHO YOU REPRESENT, AND THEN YOU MAY, MAY BEGIN YOUR TESTIMONY. 
          IF THERE'S ANYONE ELSE WHO WISHES TO SPEAK ON FOR, I'M SORRY. 
          IF THERE'S ANYONE ELSE THAT WISHES TO SPEAK ON THIS ITEM, PLEASE ENSURE THAT YOU COME FORWARD AND PRESENT THE FORM TO OUR COMMITTEE DIRECTOR, MS. LOPEZ. 
          IF NOT, THIS WILL BE OUR FINAL SPEAKER TODAY, MA'AM. 
          DAPHNE SCARBOROUGH. 
          AND I'M A RESIDENT OF HOUSTON. 
          I AM HERE ON MY OWN UNPAID, IN FACT, I'VE BEEN INVOLVED WITH MANAGEMENT DISTRICTS AND THE SPECIAL DISTRICTS SINCE 2005. 
          SO I'VE SEEN JUST ABOUT ALL THE TRANSITIONS THAT HAVE COME ACROSS. 
          I AM HERE BECAUSE OUR DISTRICT, THE MONTROSE DISTRICT, WAS THE FIRST ONE TO LOSE IN COURT AND BE DISSOLVED. 
          AND I CERTAINLY HONOR, UH, COUNCIL MEMBER GALLEGOS. 
          BUT I WILL TELL YOU IN OUR CASE, OUR CITY COUNCIL PERSON, ELLEN COHEN, WHO WAS FORMERLY A STATE REPRESENTATIVE, WAS THE ONE WHO FORMED THE DISTRICT AGAINST OUR WISHES, DID NOT COMMUNICATE WITH US ON THAT. 
          SO CERTAINLY SHE, WE COULD NOT CALL OUR CITY COUNCIL PERSON TO COMPLAIN ABOUT A DISTRICT THAT SHE HERSELF HAD FORMED. 
          SO THE DISTRICTS LOOK WONDERFUL ON PAPER, BUT THE REALITY IS A DIFFERENT THING. 
          I REALLY ENJOYED THE MAJORITY OF YOUR DISCUSSION TODAY ON HUD AND THE AFFORDABLE HOUSING. 
          'CAUSE PARTICULARLY IN OUR DISTRICT, THE MONTROSE DISTRICT, WHICH IS HUGE. 
          WE HAVE AN INCREDIBLE NUMBER OF APARTMENTS FROM THE FORTIES, THE FIFTIES, THE 1960S, AND NOW THE SEVENTIES I GUESS THAT ARE WHAT YOU WOULD CONSIDER AFFORDABLE HOUSING. 
          BUT BECAUSE OF THAT TAX, AND AS YOU HEARD REPEATEDLY THIS MORNING, THE TAX CAUSES AN INCREASE IN THE RENT ON THESE APARTMENTS. 
          AND SO WE HAVE SO MANY SMALL BUSINESSES, THE MAJORITY OF THE PEOPLE PAYING THE TAX IN THE MONTROSE DISTRICT, WERE SMALL PEOPLE LIKE MYSELF. 
          AND IT ADDS AN INCREASE TO YOUR OVERHEAD. 
          AND HAD WE THOUGHT THE DISTRICT BENEFIT US IN ANY SHAPE, 
          [03:50:01]
MANNER, OR FORM, YOU WOULD NOT HAVE GOTTEN 83% ON PETITION TO GET RID OF IT AND MUCH LESS TO SUFFER THROUGH SEVEN YEARS OF EXPENSIVE LITIGATION FOR WHICH THE TAXPAYERS PAID BOTH ENDS OF THE CAUSE. 
          IT WAS OUR MONEY. 
          THEY USED TO FIGHT US IN COURT AND DRAG IT OUT AS MUCH AS POSSIBLE. 
          I STILL HAVE NEIGHBORS AND OTHER BUSINESS OWNERS THAT CALL AND GO, ARE WE GETTING THAT TAX BACK? AND I SAID, NO. 
          THEY HAVE SPENT ALL 6.4 MILLION OF IT. 
          IT IS GONE. 
          WE DO HAVE SECURITY OF WHICH I WILL SAY ON RICHMOND AVENUE, WE NEVER HAVE SEEN A MANAGEMENT DISTRICT VEHICLE UNLESS IT'S AT ONE OF OUR LOCAL RESTAURANTS. 
          AND THAT IS A PROBLEM. 
          YES, THEY HIRE OFF-DUTY POLICE, BUT OFF-DUTY POLICE CANNOT. 
          AND THEY'RE NICE GUYS, BUT THEY, THEY ACTUALLY PATROL A CERTAIN AREA WHERE THIS ONE LANDOWNER HAD 26 PIECES OF PROPERTIES, WHICH WERE BARS AND NIGHTCLUBS AND THAT WAS WHAT THEY DID. 
          AND SO THE REST OF THE DISTRICT HAD NO BENEFIT FROM THAT. 
          SO THERE ARE MANY GOOD ISSUES, AND IT'S A GOOD THOUGHT ABOUT THE MANAGEMENT DISTRICTS, BUT THEY SHOULD BE FORMED WHEN YOU HAVE AN APPROPRIATE NUMBER OF PEOPLE TO FORM THEM. 
          IN OUR CASE, THE OLD NUMBER WAS 25, OF WHICH THEY ONLY HAD 22 VALID SIGNATURES, BUT THERE'S NOBODY WATCHING THE HEN HOUSE. 
          YOU KNOW, WE HAD TO FILE A LAWSUIT IN STATE DISTRICT COURT TO GET THAT ATTENTION. 
          AND EVEN WHEN YOU DO GET YOUR PETITIONS AND YOU PRESENT THEM, THEY CHARGED US WITH OUR OWN MONEY, $70,000, 40,000 THE FIRST TIME. 
          AND THEN THE SECOND TIME WE PRESENTED THEM 30,000. 
          SO IT'S REALLY NOT A LEVEL PLAYING FIELD. 
          AND I THINK REPRESENTATIVE GATES IS TRYING TO GET A MORE EVEN PLAYING FIELD. 
          AND YES, IT DOES MAKE SENSE TO HAVE 50% PLUS ONE, BUT AS SENATOR, UH, REPRESENTATIVE PAUL WAS SO TENACIOUS OF THIS ISSUE, IT TOOK THREE TIMES TO GET IT TO 66%. 
          SO IT'S JUST, I UNDERSTAND WHY PEOPLE WANT THEM, BECAUSE IT REALLY CREATES A LOT OF JOBS FOR YOUR FRIENDS ON THE BOARD AND DO NOT BE JUST CONCEIVED ABOUT, UH, UH, ABOUT HAVING ANY SAY WHAT THE BOARD DOES. 
          BY STATUTE, THEY ARE NOT ALLOWED TO ANSWER ANY QUESTION YOU ASK IN THE COMMENT PERIOD. 
          YOU'RE GIVEN TWO MINUTES. 
          YOU CAN GET UP THERE AND SAY YOUR PEACE, BUT THAT'S NOTHING IS GOING TO HAPPEN UNLESS DAVID HAWS OF HAWS HILL DECIDES HE WANTS TO ADDRESS THE ISSUE. 
          BUT YOU HAVE NO CONTROL. 
          SO IT IS TAXATION WITHOUT REPRESENTATION. 
          THANK YOU. 
          THANK YOU FOR YOUR TESTIMONY AND I APPRECIATE YOU BEING PATIENT AND STICKING BY FOR THE MEETING. 
          WELL, MY CLIENTS ARE PATIENT. 
          I'VE JUST TOLD THEM I'M NOT TESTIFYING YET. 
          , YOU WANTED TO COME AT THREE 30, SO NOW I TOLD HER I'D TEXT. 
          THANK YOU. 
          THANK YOU AGAIN, SEEING THAT THERE'S NO ONE ELSE THAT IS SCHEDULED TO TESTIFY TODAY. 
          WE WANT TO THANK EVERYONE FOR BEING HERE TODAY FOR YOUR TIME, FOR YOUR INPUT, FOR YOUR IDEAS, FOR YOUR SUGGESTIONS. 
          REPRESENTATIVE GATES I KNOW HAS TAKEN A LOT OF INFORMATION. 
          HE, UH, HAD A LOT OF QUESTIONS THAT'LL LEAD TO, UH, FURTHER QUESTIONS FOR THE BEGINNING, THIS NEXT LEGISLATIVE SESSION. 
          SO, UM, PLEASE CONTINUE TO WORK WITH HIM ON ALL HIS QUESTIONS, UH, MOVING FORWARD. 
          AND, UM, WE LOOK FORWARD TO SEEING EVERYBODY ON THE NEXT URBAN AFFAIRS COMMITTEE HEARING, UH, IF THERE'S NO OTHER BUSINESS TO CONSIDER. 
          AND IF THERE'S NO OBJECTION, THE COMMITTEE ON URBAN AFFAIRS WILL STAND ADJOURNED. 
          SUBJECT TO THE CALL OF THE CHAIR.
* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.