[Housing and Affordability Committee on May 13, 2024.]
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FOUR AND DISTRICT B, I'LL ACKNOWLEDGE OTHER STAFF AND COUNCIL MEMBERS AS THEY APPEAR.
UM, JUST AS A REMINDER FOR THE COMMITTEE, UH, AND FOR OUR PROCESSES TODAY, THIS SHOULD PROBABLY BE A VERY, UH, SUCCINCT PRE UH, PRESENTATION BECAUSE WE ONLY HAVE A LIMITED NUMBER OF ITEMS. UH, SO WE WILL MOVE EFFICIENTLY TODAY.
UM, WE WILL RESERVE QUESTIONS AFTER EACH PRESENTATION.
THE STAFF WILL MAKE, UM, NOTES AND WE WILL FOLLOW UP WITH THE HOUSING DEPARTMENT.
PLEASE GIVE US 48 TO 72 HOURS TO TURN AROUND A RESOLUTION FOR THAT.
UH, TODAY WE'LL HEAR A SERIES OF PRESENTATIONS FROM PUBLIC SERVICES AND SINGLE FAMILY.
UH, WE ARE, WE WILL DISCUSS A RECOMMENDATION FOR AN A FIRST AMENDMENT TO THE MONTROSE CENTER AND THE WOMEN'S HOME, AND FOR SINGLE FAMILY.
WE'LL DISCUSS A MASTER CONTRACT AGREEMENT FOR THE COMMUNITY ENTREPRENEURSHIP PROGRAM TODAY.
WE DO HAVE ONE SPEAKER SIGNED UP, UH, MRS. LAURA GALLIER.
AND THEN IF YOU ARE IN THE CHAMBERS TODAY AND WOULD LIKE TO SIGN UP TO SPEAK, PLEASE SIGN UP TO DO SO, AND WE WILL ACKNOWLEDGE YOU AT THAT TIME.
I WOULD LIKE TO ACKNOWLEDGE OUR DIRECTOR FOR REMARKS AND TO BEGIN OUR PROGRAM.
UM, AND COUNCILMAN AND COUNCILWOMEN, THANK YOU FOR HAVING US HERE.
WE, UH, ONE OF THE THINGS I'VE NOTED IN MY TENURE SO FAR IS THERE'S A LOT THAT COMES BEFORE COUNCIL, AND THERE'S A LOT THAT GOES ON BETWEEN THIS DEPARTMENT AND THOSE OF YOU HERE.
SO I'M DEEPLY APPRECIATIVE OF YOUR INTEREST.
IT IS A, IT IS IMPORTANT AND YOUR INPUT IS ABSOLUTELY NECESSARY.
UM, THERE'S STILL THINGS WE'RE TRYING TO IMPROVE AND WE WILL CONTINUE TO IMPROVE ON THAT.
UM, WHAT I'D LIKE TO DO TODAY, IF THAT'S OKAY, IS TO FIRST GO THROUGH THE, UM, ITEMS, UH, PUBLIC SERVICE AND SINGLE FAMILY, AND THEN WE HAVE ONE MULTIFAMILY ITEM AND ONE PUBLIC FACILITIES ITEM.
AND THEN I WOULD LIKE TO GIVE MY COMMENTS AFTER THAT, IF THAT'S OKAY.
SO FIRST I'LL CALL ON, I'LL CALL ON MELODY BARR.
UM, I JUST WANT TO SAY THAT SHE IS, AGAIN, ONE OF THE SEVERAL STARS WE HAVE IN THIS DEPARTMENT.
UM, SHE HAS A HUGE JOB, AND SOMEONE ASKED ME RECENTLY, HOW DID HOUSTON DO SO MUCH, UM, WITH FEDERAL FUNDING? AND MY ANSWER IS, OFTEN WE HAVE THESE VERY, VERY, VERY SMART PEOPLE WHO CAN UNDERSTAND AND READ THESE COMPLEX GUIDELINES AND FIGURE OUT HOW TO BRAID THINGS TOGETHER.
AND MELODY IS ONE OF THE STARS IN THAT.
UM, SO I'M GONNA START WITH, UM, ITEM TWO A.
THE DEPARTMENT IS PRESENTING AN ORDINANCE AUTHORIZING OF OUR AMENDMENT TO THE SUB RECIPIENT AGREEMENT WITH MONTROSE CENTER TO PROVIDE UP TO AN ADDITIONAL $2 MILLION IN HOUSING.
OPPORTUNITIES FOR PERSONS WITH AIDS FUNDING ARE COMMONLY REFERRED TO AS HOPWA.
THIS PROGRAM WILL CONTINUE TO SERVE A MINIMUM OF 265 LOW INCOME HOUSEHOLDS LIVING WITH OR AFFECTED BY HIV AND AIDS.
THIS FUNDING WILL PROVIDE TENANT BASED RENTAL ASSISTANCE TO A MINIMUM OF 80 HOUSEHOLDS, SHORT TERM RENT, MORTGAGE UTILITY ASSISTANCE TO 185 HOUSEHOLDS AND SUPPORT SERVICES, WHICH ALSO INCLUDES PERMANENT HOUSING PLACEMENT TO 32 HOUSEHOLDS.
PERMANENT HOUSING PLACEMENT OR A REFER TO AS PHP IS TYPICALLY FOR YOUR FIRST MONTH'S RENT, YOUR SECURITY AND UTILITY DEPOSITS SUPPORT SERVICES INCLUDE, BUT NOT LIMITED TO HOUSING CASE MANAGEMENT, MENTAL HEALTH, AND OR SUBSTANCE ABUSE COUNSELING, TRANSPORTATION, AND THE LIKE.
MONTROSE CENTER HAS RECEIVED FUNDING FROM THE CITY OF HOUSTON SINCE 2012, AND THERE WERE NO FINDINGS IN THEIR ANNUAL COMPLIANCE MONITORING.
THE TERM OF THIS AGREEMENT WILL RUN FROM JULY 1ST, 2023 THROUGH JUNE 30TH, 2025.
UM, AS OF MARCH OF 2024, MONTROSE HAS EXPENDED APPROXIMATELY 70% OF THEIR ALLOCATED FUNDING AND SERVED 94 THEIR CLIENT GOAL.
MONTROSE HAS RECEIVED FUNDING THROUGH VARIOUS AGREEMENTS WITH THE CITY OF HOUSTON SINCE 2007, AND TODAY WE HAVE JAMIE GIROS, THE CHIEF PROGRAM OFFICER HERE IN ATTENDANCE.
ITEM TWO B, THE DEPARTMENT IS PRESENTING AN ORDINANCE AUTHORIZING A FIRST AMENDMENT TO THE SUB-RECIPIENT AGREEMENT WITH THE WOMEN'S HOME TO PROVIDE A 12 MONTH EXTENSION TO THE CURRENT TERM AGREEMENT.
THIS AMENDMENT WILL NOT ADD ANY ADDITIONAL FUNDING.
THIS PROGRAM WILL CONTINUE TO SERVE A MINIMUM OF 50 LOW INCOME HOUSEHOLDS LIVING WITH OR AFFECTED BY HIV OR AIDS.
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WILL PROVIDE SUPPORT SERVICES TO THE BENEFICIARIES, WHICH INCLUDE SUBSTANCE USE TO TREATMENT, LONG-TERM RECOVERY, SUPPORTS, MENTAL HEALTH COUNSELING, BASIC NEEDS ASSISTANCE, ADULT EDUCATION, AND CASE MANAGEMENT TO PROMOTE HOUSING STABILITY AND ACCESS TO CARE AND OR RELATED SERVICES.AS OF MARCH OF 2024, THE WOMEN'S HOME HAS EXPENDED APPROXIMATELY 33% OF THEIR ALLOCATED FUNDING AND SERVED 48% OF THEIR CLIENT GOAL.
THE WOMEN'S HOME HAS RECEIVED FUNDING THROUGH VARIOUS AGREEMENTS WITH THE CITY SINCE 2000, AND HAD NO FINANCE IN HER LAST COMPLIANCE AND MONITORING REPORT.
AND I HOPE, I'M NOT SURE IF SHE MADE IT IN, BUT CHRISTINE DUPREE WAS SUPPOSED TO BE HERE, THE CHIEF COMMUNITY BUILDER AT THE WOMEN'S HOME.
AND I'LL, UM, I'LL TAKE ANY QUESTIONS.
THERE ARE NO QUESTIONS AT THIS TIME, BUT I WOULD LIKE TO HIGHLIGHT COUNCIL MEMBER MARTINEZ IN THE CHAPTER IN THE CHAMBERS AND STAFF FROM DISTRICT D AND DISTRICT H.
UM, SPEAKING OF HOPWA, IT MAY BE HELPFUL, UM, TO SHARE WITH OUR NEW COLLEAGUES A COPY OF THE BLUE BOOK.
UM, THAT WAS SHARED WITH OTHER COUNCIL OFFICES AND, UM, COLLEAGUES AND FOR STAFF AS WELL.
THE BLUE BOOK IS A REALLY IMPORTANT RESOURCE.
AS CONSTITUENTS MAKE, REACH OUT TO YOUR OFFICES RELATED TO, UM, SERVICES RELATED TO HOPWA.
THE BLUE BOOK IS A COLLECTION OF THE AGENCIES AND THE SERVICES AVAILABLE, SO YOU CAN HAVE A DIRECT TOOL IN ORDER TO DO THAT.
WE HAVE STAFF FROM COUNCIL MEMBER CAYMAN IN THE, IN THE QUEUE.
UH, I JUST WANTED TO PASS ALONG A MESSAGE FROM THE COUNCIL MEMBER TO THE MONTROSE CENTER.
UM, THE COUNCIL MEMBER WANTED TO THANK AND RECOGNIZE THE MONT CENTER FOR CONTINUING TO BE SUCH A GREAT COMMUNITY PARTNER.
THE WORK THAT Y'ALL DO, AND THEY DO, UH, IS ABSOLUTELY SAVING LIVES, BOTH IN THE HOUSING SPACE, BUT ALSO IN SO MANY OTHER REALMS. SO SHE JUST WANTED TO EXTEND A THANK YOU TO THE MONT CENTER.
THAT CONCLUDES QUESTIONS AND COMMENTS.
AND AGAIN, AS WE WORK ON SERVICES FOR YOUTH, UM, THESE ARE VERY IMPORTANT PROJECTS AND, UH, THE CITY IS, UM, SHOULD BE COMMENDED FOR DOING THIS.
AGAIN, I'M TREMENDOUSLY IMPRESSED WITH CEDRIC, BOTH AS A CIVIL SERVANT, DOING THE RIGHT THINGS FOR THE CITY, AND ALSO MAKING SURE OUR BUILDERS AND DEVELOPERS ARE SUCCESSFUL AND THAT THEY BUILD HOMES THAT CAN LAST.
AND LAST AND LAST, UM, WHAT I LOVE ABOUT CEDRIC IS ATTENTION TO DETAIL.
AND AGAIN, A VERY COMPLEX AREA THAT HAS A MANY, MANY TENTACLES.
ONE, CHAIRWOMAN AND COMMITTEE.
UM, HCDD RECOMMENDS COUNCIL APPROVAL FOR AN ORDINANCE TO DEALLOCATE $50,000 FROM EACH OF THE MASTER TERMINATED CONTRACT AGREEMENTS FOR THE COMMUNITY ENTREPRENEUR PROGRAM FOR HOME REPAIR, AND REALLOCATE THOSE FUNDS FOR, UH, THREE CONTRACTORS.
UH, TO CONTINUE WORKING ON THE HOUSING HOME REPAIR PROGRAM UNDER MINOR REPAIR, UH, $50,000, UH, WILL BE ALLOCATED TO EACH OF THE THREE VENDORS THAT HAVE PERFORMED OVER THE LAST THREE YEARS.
UH, I MEAN, OVER THE LAST, UH, YEAR AND A HALF.
UH, THIS WILL HELP, UM, OUR MINOR HOME REPAIR PROGRAM BY ALLOWING CONTRACTORS IN THE CEP PROGRAM, UH, TO CONTINUE, UH, THE SUCCESSFUL WORK THAT THEY HAVE BEEN DOING.
AND THIS CONCLUDES MY PRESENTATION ON ITEM THREE.
AND I JUST WANT TO COLOR IN, UH, SOME OF THE LINES AROUND THAT, UH, AROUND THIS ITEM AND WHEN IT COMES UP FOR COUNCIL.
UM, SO THIS COMMUNITY ENTREPRENEURSHIP PROGRAM WAS AN EFFORT FROM THE DEPARTMENT TO, UM, HELP SMALLER BUILDERS HAVE CAPACITY, I WOULD SAY BUILD CAPACITY TO DO, UH, PARTICIPATE IN OUR PROGRAMS. AND, AND THESE BUILDERS DID NOT MEET OUR THRESHOLD OR DID NOT PARTICIPATE.
UM, SO, UM, WHEN WE'RE TALKING ABOUT ECONOMIC DEVELOPMENT, IT'S ONE THING FOR US TO PUSH TO MAKE SURE MINORITY BUILDERS ARE PART OF IT, BUT WE ALSO WANT TO MAKE SURE THEY HAVE SCALE AND CAPACITY AND THAT CAN ACTUALLY DO THE WORK.
UM, UM, SO WE HAVE TO, UM, CONTINUE TO BE RIGOROUS WITH MAKING SURE THAT THEY HAVE, UH, THE RESOURCES NECESSARY, UM, IN ORDER TO DO THIS.
SO THE GOOD NEWS IS, IS THAT THOUGH THE CONTRACTORS THAT ARE ALREADY IN QUEUE WILL ALREADY BE, WILL BE ABLE TO PARTICIPATE AND, AND THE WORK WILL CONTINUE TO GET DONE.
UH, COUNCIL MEMBER RAMIREZ? UH, YES MA'AM.
CHAIR, I, I ASSUME IT'S A GOOD TIME TO ASK QUESTIONS ABOUT THIS.
UH, THANK YOU FOR THAT PRESENTATION.
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QUESTIONS.UM, THE PROGRAM HANDLES MINOR REPAIRS.
CAN YOU, CAN YOU GIVE US, UH, EXAMPLES OF WHAT THOSE MINOR REPAIRS MIGHT BE? ABSOLUTELY.
SO MINOR REPAIRS WOULD BE, UM, GOING INTO A HOME WHERE WE SEE THAT THERE'S A ROOF THAT NEEDS TO BE REPAIRED OR, YOU KNOW, MAY HAVE ELECTRICAL ISSUES.
UH, IT'S GONNA BE THOSE SMALLER CONTRACTS THAT GO UP TO, UH, $20,000.
UM, THESE CONTRACTORS, UM, UM, GO IN AND THEY DON'T REQUIRE THE CAPACITY OF OUR, UH, I GUESS THE BONDING CAPACITY OF OUR LARGER CONTRACTORS THAT ACTUALLY REBUILD AND RECONSTRUCT HOMES FOR US.
AND DO WE HAVE ANY IDEA HOW MANY, UH, FOLKS HAVE BEEN HELPED THROUGH THIS PROGRAM? UH, YES.
SO OUR MINOR REPAIR, UH, WE'VE COVERED ABOUT 12 HOMES, UH, WITH THE CURRENT THREE CONTRACTORS THAT HAVE BEEN PERFORMING.
UH, THIS WILL ALLOW, THIS FUNDING, UM, WILL ALLOW FOR THOSE CONTRACTORS TO CONTINUE TO, UM, SERVICE THE PIPELINE THAT WE HAVE.
AND SO, UM, HOW DO RESIDENTS WHO MIGHT QUALIFY FOR THIS ASSISTANCE FIND OUT ABOUT IT? SO WE HAVE INFORMATION ON OUR WEBSITE AND, YOU KNOW, IF YOU HAVE SOMEONE FROM YOUR OFFICE THAT NEEDS TO, UH, GIVE US A CALL, UH, WE CAN DEFINITELY LOOK AT, UH, THOSE INDIVIDUALS, UM, AND SEE IF THEY QUALIFY FOR THE PROGRAM.
OUR MAJORITY OF THE HOMEOWNERS THAT WE HAVE BEEN ASSISTING, UM, HAVE BEEN OUR ELDERLY AND DISABLED, UH, HOMEOWNERS.
COUN UH, STAFF FROM COUNCIL MEMBER EVAN SHABBAT.
FIRST, WHAT, HOW MUCH IS IT PER HOUSE THAT YOU PROVIDE? SO UNDER THIS PROGRAM, THE CEP, IT'S UP TO $20,000 PER HOUSE.
THIS IS $50,000 FOR, IT'S $50,000 EACH FOR THESE THREE CONTRACTORS.
SO YOU HAVE $150,000 THAT'S BEING REALLOCATED.
COUNCIL LADY EVER SHABAS FOR SEVERAL YEARS HAS BEEN PROVIDING, UH, FUNDING FROM MINOR HOME REPAIR.
BE VERY INTERESTED IN SPEAKING WITH YOU AFTER THIS FOR THAT.
UH, WE HAVE A DONATION FROM DAIKIN, UH, SYSTEMS, UH, WHO PROVIDE HPAC SYSTEMS. UH, THEY'RE GONNA BE PROVIDING 20 UNITS TO OUR LOW TO MODERATE INCOME HOUSEHOLDS, UM, AS A DONATION FROM THE VISIT FROM THE ADMINISTRATION, UH, TO JAPAN.
UH, WE ARE LOOKING TO CREATE A ONGOING RELATIONSHIP WITH DAIKIN, UH, TO PROVIDE, YOU KNOW, 20 UNITS EACH YEAR.
AND THAT SHOULD BE COMING BEFORE COUNCIL SOON, SO CORRECT.
AND IT'D BE PERFECT TIMING AS WE ENTER SUMMER AND AS THE HOME REPAIR PROGRAM MOVES FORWARD.
AND THOSE SENIORS THAT NEED A NEW AC UNIT, THEY'LL BE ABLE TO GET ONE AT NO COST, UM, BECAUSE OF THE CORPORATE PARTNERSHIP.
SO WE'LL BE ON THE LOOKOUT FOR THAT.
AND I WANT TO ACKNOWLEDGE I MAY APPROACH TIM, MARTHA CASTEX TATUM FROM DISTRICT K.
ANY OTHER QUESTIONS, COMMENTS? UM, DEREK SELLERS, IF YOU'LL COME FORWARD TO DISCUSS MULTIFAMILY OST LOFS.
GOOD AFTERNOON FOR AGENDA ITEM FOUR, THE HOUSE OF COMMUNITY DEVELOPMENT DEPARTMENTS RECOMMENDING CITY COUNCIL APPROVAL OF AN ORDINANCE AUTHORIZING A FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND TEJANO CENTER FOR COMMUNITY CONCERNS AND D-W-R-O-S-T, UH, LP RELATED TO THE OST LOFTS MULTIFAMILY DEVELOPMENT.
UH, THIS AMENDMENT ACCOMMODATES THE REQUEST OF THE OWNERS TO SELL THE LAND TO HARRIS COUNTY HOUSING FINANCE CORPORATION, OST LOFTS, LANDOWNER, LLC FOR $4,030,000, WHILE RETAINING THE OWNERSHIP OF THE BUILDINGS AND, AND EQUIPMENT ON THE LAND.
UH, THE OWNER APPLIED FOR THE FUNDS THEIR AMERICAN RESCUE ACT FUNDS FROM HARRIS COUNTY COMMUNITY SERVICES DEPARTMENT, AND RECEIVED APPROVAL FOR THE AWARD UPON APPROVAL OF THE AMENDMENT.
A 99 YEAR GROUND LEASE WILL BE PUT IN PLACE UPON SALE TO ALLOW THE DEVELOPMENT TO CONTINUE TO PROVIDE AFFORDABLE HOUSING TO ITS TENANTS.
AND THROUGH THIS AMENDMENT, NO ADDITIONAL FUNDS ARE BEING REQUESTED FROM THE CITY, AND IT WILL NOT CHANGE THE AFFORDABILITY REQUIREMENTS THE CITY HAS PLACED ON THE DEVELOPMENT.
THE FUNDS RECEIVED BY THE DEVELOPER WILL BE USED TOWARDS CLOSING COSTS, EXISTING DEBTS, ENSURING UP OPERATING DEFICIT DEFICITS FOR THE PROJECT.
TODAY WE HAVE DONNA RICKENBACKER FROM DWR DEVELOPMENT GROUP HERE IN ATTENDANCE.
AND THIS CONCLUDES MY PRESENTATION ON THIS ITEM.
AND JUST WANTED TO SAY, UH, THANK YOU FOR WORKING WITH DONNA ON THIS PROJECT.
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BEEN LOOKING FORWARD TO, UH, IN THE GREATER EAST END, UH, AS A STANDALONE CHILD CHILDCARE FACILITY AS WELL FOR EARLY CHILDHOOD.UH, SO, YOU KNOW, JUST AGAIN, THANK YOU FOR WORKING WITH DONNA, MAKING SURE THAT WE CONTINUE TO INCREASE OUR HOUSING CAPACITY, BUT AT THE SAME TIME LOOKING AT EARLY CHILDHOOD EDUCATION.
NO OTHER QUESTIONS, THE COMMENTS IN THE QUEUE.
THIS, UH, AND WHEN YOU LOOK IN THE PART ON THE UPDATES, THIS, UH, DEVELOPMENT IS 61% COMPLETE WITH 130 UNITS.
SO I'M GONNA PRESENT ON THE NEXT ITEM AS WELL.
UH, SO FOR AGENDA FIVE, AGENDA ITEM FIVE, THE DEPARTMENT IS RECOMMENDING CITY COUNCIL APPROVAL OF AN ORDINANCE AUTHORIZING A FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND EAST END MAKER HUB SPONSOR LLC TO INCREASE THE OUTSTANDING BALANCE OF THE CONSTRUCTION LOAN FOR THE EAST END MAKER HUB PROJECTS BY $3,372,745 IN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS, OR CDBG AND TO ELIMINATE THE REQUIREMENT FOR MONTHLY 1% INTEREST PAYMENTS.
EAST END MAKER HUB DEVELOPED BY URBAN PARTNERSHIP CDC IN COLLABORATION WITH TX RX LABS WAS A PROJECT THAT OPENED IN 2021 TO FACILITATE ECONOMIC DEVELOPMENT.
THE HUB PROVIDES BELOW MARKET RENTAL SPACE FOR SMALL AND MEDIUM SIZED MANUFACTURERS AND LIGHT INDUSTRIAL BUSINESSES IN NEED OF WORKSPACE FOR CREATIVE OFFICES, STUDIO SHOPS, WHILE ALSO PROVIDING TRAINING, EDUCATION AND APPRENTICESHIP PROGRAMS. IN NOVEMBER, 2019, HUD PROVIDED THE CITY WITH A LOAN OF $22,700,000 IN SECTION 1 0 8 FUNDS.
SPECIFICALLY FOR THIS PROJECT, THE CITY THEN ENTERED INTO AN AGREEMENT WITH EAST END MAKER HUB TO PROVIDE THE SECTION 1 0 8 FUNDS FOR THE PROJECT, AS WELL AS A GRANT OF 1,390,000 IN CDBG FUNDS.
UH, THE AGREEMENT ITSELF OUTLINED THE TERMS FOR THE REPAYMENT OF THE SECTION 1 0 8 FUNDS TO THE CITY IN THE FALL EAST END MAKER HUB REQUESTED FINANCIAL ASSISTANCE FROM THE CITY RELATED TO THE INTEREST PAYMENTS FOR THE SECTION 1 0 8 LOAN.
AS INTEREST RATES HAVE RISEN OVER THE LAST FEW YEARS, SO HAVE THE AMOUNT OF PAYMENTS RELATED TO THE SECTION 1 0 8 LOANS, TYPICALLY WITH SECTION 1 0 8 LOANS FROM HUD.
THE INTEREST RATE VARIES WITH THE MARKET UNTIL HUD HOLDS A PUBLIC OFFERING THAT ALLOWS FOR THE PROJECTS TO LOCK IN AN INTEREST RATE FOR THE REMAINDER OF THE LOAN.
HUD HAS NOT HELD A PUBLIC OFFERING RELATED TO THE SECTION 1 0 8 PROGRAM SINCE 2019.
AS YOU CAN SEE ON THE SLIDE IN FRONT OF YOU, WHAT WAS EXPECTED, AND YOU CAN SEE IT IN THE BOTTOM ARROWS, UM, THAT AS OF THE SUMMER OF 2021, THE ANNUAL DEBT SERVICE ON THIS FOR THE WOULD BE $317,000 PER YEAR.
AS INTEREST, INTEREST RATES HAVE RISEN, YOU CAN SEE THAT NUMBER IS ACTUALLY NOW UP TO $1.5 MILLION ANNUALLY, OR FIVE TIMES THE AMOUNT THAT WAS EXPECTED FOR THE DEBT SERVICE ON THIS.
AND WORKING IN COM, IN, UH, IN CONJUNCTION WITH EAST END MAKER HUB AND I, AFTER CONSULTING WITH HUD, UH, WE WERE RECOMMENDING THESE AMENDMENTS TO THE AGREEMENT BETWEEN US AND THEM.
UH, TODAY WE HAVE PATRICK ZELL, PRESIDENT OF UP CDC, REPRESENTING EAST END MAKER HUB IN ATTENDANCE, ALONG WITH OTHER MEMBERS OF THE PROJECT.
THIS CONCLUDES MY PRESENTATION ON THIS ITEM.
UM, WE DO HAVE A COUPLE OF COUNCIL MEMBERS IN THE QUEUE, UH, COUNCIL MEMBER RAMIREZ AND THEN MARTINEZ, AND THEN I'LL CLOSE WITH MY COMMENTS.
UH, THANK YOU MADAM CHAIR WITH, WITH REGARD TO THE INTEREST RATE, UM, WAS IT NOT POSSIBLE TO LOCK IN AN INTEREST RATE AT THE VERY BEGINNING? IT WAS NOT.
WE HAVE TO WAIT ON HUD TO TAKE ACTION TO NOTIFY US THAT WE CAN LOCK IT IN.
AND AS I SAID, THEY, THEY HAVEN'T DONE THAT FOR ANY SECTION 1 0 8 PROJECT IN THE COUNTRY SINCE 2019.
AND THE EXPECTATION FROM ALL PARTIES INVOLVED IS THAT IT WOULD HAPPEN BY THE YEAR END AFTER THE PROJECT WAS COMPLETED.
AND IT JUST DIDN'T, UH, IN SPEAKING WITH HUD AS WE'VE GONE THROUGH THIS PROCESS, THEY'VE TALKED ABOUT MAYBE GOING OUT AND, AND HAVING ONE OF THOSE OFFERINGS THIS SUMMER, BUT WE HAVEN'T RECEIVED ANY UPDATES ON THAT SINCE EARLIER THIS YEAR.
SO ARE YOU SAYING BECAUSE OF HUD'S UH, INFLEXIBILITY THERE, UH, WE INCURRED A SUBSTANTIAL, UH, AMOUNT OF DEBT? THAT IS CORRECT.
AND NOW WE NEED TO APPROVE THESE FUNDS TO, TO PAY FOR THAT DEBT.
TO HELP FINANCIALLY STABILIZE THE PROJECTS.
NOT ONLY NOW, BUT MOVING FORWARD.
AND JUST, UM, IN, IN SUPPORT OF WHAT'S GOING ON AS WELL.
UH, THE, THE PROJECT, YOU KNOW, HAS HOUSED SEVERAL ORGANIZATIONS, SOME SECOND CHANCE AS WELL MM-HMM
UH, SO IT'S, IT'S A GREAT PROJECT AND I'M, I'M GLAD THAT WE'RE ABLE TO AT LEAST, YOU KNOW, START FINDING A WAY WHERE WE'RE NOT GONNA CONTINUE TO INCUR MORE DEBT THAN WHAT WE SHOULD.
UM, BUT, BUT TO THAT AS WELL, YOU KNOW, JUST REAL QUICK CLARIFICATION, IT'S IN DISTRICT H, SO I DON'T WANNA TAKE TOO MUCH CREDIT FOR IT.
UH, BUT YOU COULD THROW A ROCK RIGHT ACROSS OUR TRACKS AND WE'RE IN DISTRICT GUY.
BUT, UH, YOU KNOW, IT SERVICES NOT JUST THE EAST END, IT REALLY SERVICES THE
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ENTIRE CITY.AND SO, UH, YOU KNOW, IT'S, IT'S IMPORTANT THAT WE CONTINUE TO PROVIDE THIS, THIS TYPE OF SPACE, UH, WHERE, WHERE FOLKS CAN COME IN, UH, MAKER SPACE AS WELL, UH, COME IN AND LEARN SKILLS, BUT ALSO, UH, GAIN SKILLS AS WELL.
UM, AND LASTLY FOR ME, AND I'VE SHARED THIS IN THE BRIEFING, YOU KNOW, I THINK FOR THE DEPARTMENT, PARTICULARLY FOR SECTION 1 0 8 FUNDS, I WOULD LIKE TO SEE SOME TYPE OF, UM, GUIDANCE IN TERMS OF WHEN THE DEPARTMENT MOVES FORWARD ON A SECTION 1 0 8.
SO WE'RE NOT IN, DEPENDING ON THE MARKET, OUR HANDS ARE NOT TIED.
SECTION 1 0 8 IS FOR US TO GO BIG, BIG PROJECTS, UM, TO INVEST IN OURSELVES.
I THINK THE EAST END, UM, MAKER PROJECT IS THAT, BUT WITH THE CONDITIONS MM-HMM
AND WITH US HAVING OTHER SECTION, SECTION 1 0 8 PROJECTS, I JUST GET, I'M NERVOUS ABOUT THAT.
AND SO, UM, UH, I WOULD LIKE SOME TYPE OF INTERNAL, UH, THE DEPARTMENT TO HAVE SOME TYPE OF LANGUAGE AROUND WHEN IT'S APPROPRIATE TO CONSIDER ONE, UH, 1 0 8 FOR FUNDING, UM, AND THE OBLIGATION THE CITY WILL HAVE IN THE FUTURE.
THIS TIME WE DON'T HAVE THAT AVAILABLE.
IN THE FUTURE, IN THE FUTURE, NOT THIS INTEREST RATE ENVIRONMENT, I DON'T THINK WE HAVE MUCH OF AN APPETITE.
BUT JUST MOVING FORWARD AS IT IS A TOOL FOR US TO USE, IT'S A VIABLE TOOL, BUT JUST TO, UM, HAVE SOME THOUGHT ABOUT THE MARKET 'CAUSE IT CHANGED, RIGHT? MM-HMM
I MEAN, WHEN THIS, A SERIES OF THESE ITEMS CAME BEFORE IT WAS THE, THE APPETITE IN THE MARKET WAS GOOD FOR THIS, FOR US TO MOVE FORWARD WITH THIS.
SO, UM, JUST MOVING FORWARD, THERE ARE OTHER, NO OTHER QUESTIONS OR COMMENTS RELATED TO, I MAKE ONE COMMENT WHEN I LOOKED AT THIS, ONE OF THE THINGS I WANTED TO MAKE SURE, AND MY DUE DILIGENCE THAT THERE WAS, THAT THIS WAS NOT AN ISSUE OF POOR MANAGEMENT OR POOR FINANCIAL DECISIONS ON THE DEVELOPER'S PART.
AND THIS IS SIMPLY A RESULT OF THE EXPECTATION THAT HUD WOULD SET THESE INTEREST RATES AND THEY JUST DID NOT FAILED ACT.
NO QUESTIONS OR COMMENTS IN THE QUEUE? YOU THANK YOU MUCH.
THAT CONCLUDES OUR PRESENTATIONS.
WE DO HAVE DIRECTOR COMMENTS AND THEN WE'LL HAVE PUBLIC SPEAKERS.
DO WE HAVE OUR PUBLIC SPEAKER IN CHAMBERS? TJ? OKAY.
I WANT TO, AS I START, I WANT TO INTRODUCE TAMIKA JONES, OUR ASSISTANT DIRECTOR AND CFO TO GIVE YOU HER UPDATE ON C-D-B-G-D-R 17 AND THE DEPARTMENT'S PRODUCTION REPORT.
BASED ON THE MEETING, UH, THE COMMITTEE MEETING WE HAD LAST MONTH, I WOULD LIKE TO PROVIDE THE COMMITTEE WITH AN UPDATE REGARDS.
IF YOU COULD GO TO THE NEXT SLIDE, PLEASE.
I WOULD LIKE TO PROVIDE THE COMMITTEE WITH, UM, A PROPOSED, UM, BUDGET AMENDMENT FROM THE GLO.
UM, AS YOU REMEMBER FROM LAST COMMITTEE MEETING, AND I THINK SEVERAL COUNCIL MEMBERS HAVE MET WITH, UH, THE GLO AROUND PROVIDING ADDITIONAL FUNDS FOR URA ASSISTANCE.
AND THAT IS THE UNIFORM RELOCATION ACT ASSISTANCE.
WHAT THE GLO IS PROPOSING IS THAT ADDITIONAL DOLLARS FROM EACH OF THE PROGRAMS THAT WILL NOT BE SPENT, UH, BE REALLOCATED TO GO TOWARDS THAT RELOCATION ASSISTANCE.
THIS WOULD MAKE THINGS VERY EASY FOR GEOLO TO, UH, BE ABLE TO REALLOCATE THOSE FUNDS AND THEN PUT THEM IN THE HANDS OF THE, UH, RESIDENTS THAT NEED THEM FOR THE RELOCATION ASSISTANCE.
AND SO WHAT THIS WILL DO IS THIS WILL IMPACT THE BENCHMARKS THAT I NORMALLY REPORT ON ON A MONTHLY BASIS.
SO IF YOU REMEMBER, OUR BUDGET SLIDES WILL HAVE NORMALLY BEEN A TOTAL BUDGET OF 664 MILLION.
WE ARE REDUCING THAT TO 651 MILLION.
SO THAT, AND THIS AGAIN, RELATES DIRECTLY TO DOLLARS THAT CANNOT BE SPENT FOR EACH OF THE PROGRAMS. AND I'VE INCLUDED WHERE THE DIFFERENCES ARE FOR EACH PROGRAM ALONG WITH THE REDUCTIONS.
ANY QUESTIONS AS YOU DIGEST IT? HOLD ON.
WHERE'S PUBLIC SERVICES? WHERE'S THE 675,000 COMING FROM PUBLIC SERVICES? THESE ARE, UH, PROGRAM DOLLARS THAT AS WE CLOSED OUT THE PUBLIC SERVICES PROGRAM, WE COULD NOT, WE, THE GLO WAS NOT APPROVING ADDITIONAL PROJECTS, SO THEY WERE NOT APPROVING ADDITIONAL DOLLARS TO BE USED TOWARD GOING TOWARDS THE AGENCIES.
AND SO THOSE ARE GOING TO BE UNSPENT DOLLARS THAT BECAUSE THAT PROGRAM HAS BEEN SUCCESSFULLY CLOSED OUT, THE DOLLARS CANNOT BE USED.
SO THIS IS JUST TAKING ALL THE REMAINDER OF THE DOLLARS AND, UH, MOVING THEM FOR URA ASSISTANCE.
BUT I THOUGHT WE WEREN'T CLOSING OUT PUBLIC SERVICES TILL JUNE.
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OH NO.IN FACT, WE RECEIVED OUR LETTER JUST LAST WEEK, I BELIEVE IT WAS LAST WEEK, THAT PUBLIC SERVICES HAS OFFICIALLY CLOSED.
SO ONE OF THE CHANGES THAT GLO MADE IS PUBLIC SERVICES WAS GOING TO CLOSE IN AUGUST OF AUGUST 31ST, 2024.
ONE OF THE CONTRACT AMENDMENTS THAT GLO MADE WAS, UM, CLOSING OUT EACH OF THE PROGRAMS 90 DAYS AFTER SUBSTANTIAL ACTIVITIES HAVE BEEN COMPLETED.
SO WHAT THAT DID WAS EXPEDITE A LOT OF OUR CLOSEOUT ACTIVITIES.
SO THAT WAY IF THERE ARE DOLLARS THAT ARE AVAILABLE, GEOLO CAN THEN REALLOCATE THOSE DOLLARS TO ADDITIONAL PURPOSES.
AND WHAT ABOUT THIS HOME BUYERS? WHERE'S THE 1.7 MILLION THAT IS FOR AS WHAT DOES IT RIGHT, BUT WHAT DOES IT TAKE AWAY FROM IT TOOK AWAY FROM, IT WAS, UH, DOLLARS THAT WERE NOT GOING TO BE USED FOR ADDITIONAL HOME BUYER ASSISTANCE.
SO I BELIEVE WE WERE, I THINK NOVEMBER.
WHERE'S KENISHA? NOVEMBER, 2022 IS WHEN GLO STOPPED APPROVING NEW, NEW APPLICANTS AND NEW PROJECTS.
SO AT, AT THAT POINT, GLO STOPPED APPROVING ANYONE NEW TO RECEIVE A ASSISTANCE.
AND SO WITH THAT, WHEN THEY STOPPED APPROVING PEOPLE OR HOME BUYERS, WHAT THAT DID WAS ALLOW THOSE PROGRAMMATIC DOLLARS TO JUST SIT THERE AND COULD NOT BE UTILIZED.
AND SO AS WE CLOSE OUT HOME BUYER ASSISTANCE, WHICH WE'RE ACTIVELY DOING RIGHT NOW, THESE ARE GOING TO BE DOLLARS THAT ARE ANTICIPATED, WILL NOT BE USED, CANNOT BE USED BECAUSE THEY'RE NOT APPROVING ANY ADDITIONAL HOME BUYERS.
SO WE CANNOT USE 'EM FOR THAT PURPOSE.
THEREFORE, GLO WILL REALLOCATE THE MONEY TO URA, BUT WE'RE STILL ABLE TO, UM, FROM OUR TURS ALLOCATION.
SO WE WILL BE PROVIDING HOME BUYER ASSISTANCE AND DOWN PAYMENT ASSISTANCE AS PART OF THE A HD PROGRAM SURE.
THIS IS JUST DOWN PAYMENT ASSISTANCE USING THE HARVEY FUNDS.
COUNCIL MEMBER RAMIREZ? NO, I JUST HAD A QUESTION, UH, REGARDING THIS.
I DIDN'T SEE IT ON THE AGENDA.
DID I JUST MISS IT? OR WAS IT ADDED OR NO, IT'S DIRECTOR COMMENTS.
I TYPICALLY WILL JUST FALL UNDER THE DIRECTOR.
USUALLY MY COMMENTS ARE YOU'RE FINE.
AND SO IF WE MOVE TO THE NEXT SLIDE, WHAT YOU WILL SEE THEN IS BECAUSE THE, IN SEVERAL OF THE PROGRAM AREAS, BECAUSE THE DOLLAR AMOUNTS ARE SMALLER, WHEN MULTIPLYING THE PERCENTAGE FOR BENCHMARKS, WHAT HAPPENS IS OUR BENCHMARK APPROVAL AMOUNTS ALSO BECOME SMALLER.
AND SO YOU WILL SEE IN THIS CASE, UH, A CHANGE FROM LAST MONTH IS THAT THE SMALL RENTAL PROGRAM HAS NOW MET THEIR BENCHMARK FOR JUNE 30TH 93.
AND THE PROGRAM THAT WE ARE ACTIVELY WORKING TOWARDS COMPLETING IS OUR PLANNING.
AND SO I WANTED TO COVER THE BUDGET WITH THE COMMITTEE BECAUSE AGAIN, WHEN YOU START MULTIPLYING SMALLER NUMBERS BY SAYING PERCENTAGES, THE AMOUNTS CHANGE AND THEREFORE OUR SUCCESS, UH, WILL CHANGE BASED ON PROGRAM.
SO PAGE 32 IS THE PROPOSED CONTRACT AMENDMENT.
SO THEN THAT'S A $12 MILLION DELTA FROM WHAT WE ALREADY HAVE.
SO WE'RE GONNA CLOSE OUT OUR PROGRAMS FOR OUR AUGUST, 2024.
THE DELTA THAT REMAINS THE 12 MILLION WILL BE REDIRECTED TO URA AND THEN WHAT'S THE CLOCK ON URA ON THEIR END TO COMPLETE THIS 26 OR 28? THAT IS WHAT WE ARE CURRENTLY DISCUSSING.
THAT IS, RIGHT NOW IT IS SCHEDULED FOR FEBRUARY 28TH TO 2025.
AND SO IF YOU LOOK, URA IS UH, LISTED AS THE BUYOUT PROGRAM.
AND THAT'S THE FEBRUARY 28 25.
BUT WE ARE CURRENTLY DISCUSSING WITH GLO ON WHETHER THAT DATE WILL BE EXTENDED FOR THE URA ACTIVITIES.
BUT IF THEY'RE TAKING THE 12 MILLION TO URA, IT'S ON THEIR CLOCK.
SO WE'RE ON TRACK TO CLOSE OUT AUGUST 24 THIS SUMMER FOR URA WE WILL STILL LIKELY NO, NOT FOR UA FOR THE REST OF THE PROGRAM.
OH, FOR THE REST OF THE PROGRAM.
URA IS EXTRACTED OUT, THEY WILL BE CLOSED OUT SOMEWHERE BETWEEN NOW AND AUGUST 31ST OF 24.
AND THEN OUR CONTRACT STIPULATES ALSO 90, WE HAVE 90 DAYS AFTER.
SO WHAT HAPPENS IS, ALL THROUGHOUT, WE THOUGHT WE WERE GOING TO HAVE THE LATTER PART OF THIS YEAR TO BE CLOSING OUT ACTIVITIES, BUT BECAUSE SOME OF THE SUBSTANTIAL ACTIVITIES COMPLETED SOONER, WE HAVE BEEN IN CLOSEOUT MODE ALL YEAR AND WILL REMAIN IN CLOSEOUT MODE ALL YEAR.
I'M JUST INTERESTED IN THE URA TIMELINE SINCE THERE'S MULTIPLE ABSOLUTELY.
DEADLINES FOR DIFFERENT ITERATIONS
[00:30:01]
ON WHAT THE CLOCK IS FOR THAT BECAUSE WE DID A WHOLE BIG PRESS CONFERENCE AND ALL OF THAT INFORMATION.SO WE WANT TO MAKE SURE THAT YES, YOU ARE MORE THAN WELCOME TO HOLD.
DEREK WANTS TO ADD SOME ADDITIONAL COLOR.
SO FOR THE BUYOUT PROGRAM IN GENERAL, WE HAVE A LONGER TIMELINE TO CLOSE IT OUT.
THE REMAINING ACTIONS THE CITY HAS RELATED TO THE BUYOUT PROGRAM IS PRIMARILY THE DEMOING OF THE PROPERTIES.
WE'RE WORKING WITH SPD RIGHT NOW.
WE HAVE THINGS COMING RIGHT NOW.
AND THOSE THINGS SHOULD BE DONE SOMETIME IN THE FALL.
AND THEN WE'LL HAVE, WE'LL HAVE CLOSE OUT FOR EVERYTHING RELATED TO US AFTER THAT.
THE, THE GLO HAS THEIR OWN CONSULTING OR CONTRACTOR HANDLING URA ACTIVITIES.
THESE FUNDS, AS WAS MENTIONED BY TJ, WILL BE TRANSFERRED OVER FOR THEM TO SPEND FOR THOSE PURPOSES.
BUT THEY'RE GONNA BE ON THEIR OWN TIMELINE TO CLOSE OUT.
AND THEY'RE, AND THAT'S BASED ON THEIR AGREEMENT WITH HUTCH.
SO THEIR, WHAT WE HAVE, WHAT WE HAVE TO TALK THROUGH WITH THEM IS DO WE GET SOME SORT OF, WHAT DOES THAT MEAN FOR US? IF THEY'RE STILL DOING URA UNDER OUR BUYOUT PROGRAM, WHAT DOES THAT MEAN FOR US AS FAR AS A CLOSEOUT GOES? RIGHT.
AND WE DON'T HAVE THAT CLARITY YET.
AND WE LIKELY WON'T HAVE IT UNTIL CLOSER TILL THE END OF THE YEAR BECAUSE THEY WANT TO SEE CLOSER TO WHEN YOU'RE GONNA MAKE THAT LAST PAYMENT.
THAT'S WHEN THEY START GIVING YOU THAT GUIDANCE 90 DAY AND ROLLOUT.
AND THAT'S NOT GONNA HAPPEN FOR US UNTIL SOMETIME IN THE FALL.
SO OUR DIRECT OBLIGATION RIGHT NOW, JUST LIKE THE CAPITAL, JUST THE TEAR DOWN THE, THE PHYSICAL STRUCTURE AND THEN WE MOVE TO DETENTION.
SO IN TERMS OF MARKERS, THAT'S WHAT WE SHOULD BE LOOKING FOR, RIGHT? THE REMOVAL OF THE THREE PHYSICAL STRUCTURES AND THEN MOVING TO DETENTION.
AND THAT'S IN 2024? THAT'S 2024.
WE, WE WILL HAVE THOSE DEMOED BY THE END OF THIS YEAR.
BUT OUR, OUR DEADLINE OR CLOSEOUT IS FEBRUARY, HOWEVER, 25.
HOWEVER, IT IS CONTINGENT UPON HOW THEY HANDLE THEIR PART OF THE URA.
WE JUST DON'T HAVE CLARITY YET.
AND THEN Y'ALL CAN COME BACK TO US WITH AN UPDATE REGARDING THAT.
AS WE KNOW MORE, WE'LL BE PROVIDING THOSE KINDS OF UPDATES.
33 IS JUST AN UPDATE OF WHERE WE STAND ACCORDING TO THE BENCHMARKS.
UM, AS YOU REMEMBER, WE HAVE OUR PERFORMANCE BENCHMARKS, WHICH ARE BASED ON THE AMOUNT OF DRAW REQUESTS THAT ARE APPROVED BY GLO.
AND WE HAVE THE 11 IN THE QUEUE AND WE HAVE 11.
SO, SO, AND, AND I WILL SAY THAT, LET ME CAVEAT THAT WITH WE'RE REALLY WORKING TOWARDS OUR PLANNING, UM, WRAPPING UP SOME OF THE PLANNING PROJECTS AND THEN BEING ABLE TO SUBMIT THOSE DRAWS.
OUR HOPE, HOPE WILL LIKELY MAY NOT MEET ITS BENCHMARK JUST BECAUSE THERE'S NOT THAT MUCH AN ADDITIONAL SPENDING HOPE IS ON THE WIND DOWN TO PREPARING TO FORMALLY CLOSE OUT AS WELL.
SO THE LIKELIHOOD THAT WE'RE GOING TO SPEND ALMOST $3.9 MILLION BY JUNE, UH, WILL BE AN EXTREME STRETCH.
THERE'S JUST NOT THAT MUCH ACTIVITY REMAINING.
SO FOR THE 11.7 IN THE QUEUE, BASED ON NOW THERE'S BEEN AN ADJUSTMENT, UM, WITH THE AMENDMENT, THE SECOND AMENDMENT.
SO THEN, UM, IN TERMS OF THE TURNAROUND, IN TERMS OF APPROVAL, ARE WE SEEING ANY CHANGES WITH THAT? ARE THEY MOVING FASTER? WE, THERE ARE GREAT IMPROVEMENTS.
UM, EVEN GLO HAS, HAS COME BACK TO OUR TEAM AND SAID THEY'VE SEEN A SIGNIFICANT REDUCTION IN THE RFIS.
IF YOU REMEMBER, I'VE SPOKE ABOUT SEVERAL TIMES, THIS IS PROBABLY THE LAST COMMITTEE, BUT SEVERAL TIMES ABOUT THE NUMBER OF ITERATIONS WE WERE GOING BACK AND FORTH ABOUT DOCUMENTATION.
THAT HAS SUBSTANTIALLY IMPROVED.
AND AGAIN, AS WE'RE WINDING DOWN THE PROGRAMS, IT'S REALLY FOCUSING ON CLOSING OUT WHAT ARE THE LAST FEW BITS OF DRAWS THAT WE HAVE TO GET IN.
SO BY JUNE, WELL WE ARE REALLY FOCUSED ON THE, THE PLANNING ACTIVITY.
THAT'S, THAT'S OUR MAIN FOCUS AND PRIORITIZING THOSE DRAWS.
MADAM CHAIRWOMAN, THE, THE ENTIRE RELATIONSHIP WITH GLO CONTINUES TO BE POSITIVE.
UM, IN THIS AREA, IN THE AREA WITH FINANCE, IN THE AREA OF, UM, OF COMPLIANCE.
UM, WE HAVE VERY OPEN CONVERSATIONS.
AND SO FAR, BASICALLY WHEN WE'VE ASKED FOR SOMETHING THAT'S REASONABLE, THEY SAY YES, THAT'S GOOD TO KNOW.
AND THEN ALSO, IF YOU'RE PREPARED TO GIVE AN UPDATE ON THE SINGLE FAMILY TRACK, UM, ON THE LARGE TRACK, UH, A NO FOR PROCESS, THAT WOULD BE HELPFUL.
YOU CAN DO IT IN THIS MEETING.
IF NOT, I WOULD LIKE THAT INFORMATION EITHER TO BE SHARED, UM, TO THE COMMITTEE OR WE'LL BE READY FOR JUNE.
'CAUSE WE DON'T MEET IN JUNE, BUT I IS THE NOFA UP FOR THE, FOR STELLA LINK.
CEDRIC, YOU WANNA COME UP CEDRIC OR DEREK, WOULD YOU LIKE TO MAKE A COMMENT? SO THE, THE NOFA IS NOT UP YET.
UM, BUT IF YOU WANNA COME MAKE A
[00:35:01]
COMMENT, THAT'D BE GREAT.UM, WE EXPECT IT TO BE, THE TIMELINE HAS BEEN SET.
WE, WE, IT'S AN AGGRESSIVE TIMELINE.
UH, SO WE ARE WORKING ON AN AGGRESSIVE TIMELINE TO GET IT OUT BY THE END OF MAY.
UH, WITH PROPOSALS TO COME IN FOR A 30 DAY, UH, PERIOD.
UH, SO END OF JUNE, UH, WITH PROPOSALS BEING SUBMITTED AND MOVING THOSE FORWARD TO SEE WHAT WE HAVE AS, UM, AS A VIABLE PROJECT.
AND THE REASON WHY I RAISED THAT POINT IS WE CAN HAVE ALL THE NEGOTIATIONS AND AGREEMENTS WITH THE GLO, BUT IF WE DON'T HAVE DEVELOPERS ACTUALLY PARTICIPATING IN BIDING, THEN IT'LL BE ALL FOR NOT.
SO I, I THINK IT MAY BE HELPFUL ONCE THAT NOFA IS, UM, ON THE STREET TO SHARE WITH COUNCIL OFFICER, YOU CAN SHARE WITH THE COMMITTEE.
WE'LL PUT IT OUT THERE SO WE CAN GET THAT TO THE STREET.
'CAUSE WE NEED PEOPLE TO BITE TO PARTICIPATE IN THIS PROJECT.
UM, SO MAYOR PRO TEM DON'T HAVE TO TEXT ME AND CALL ME NO MORE ABOUT THIS PROJECT.
UH, MAYOR PRO TEM CASTEX TATUM.
DID WE DECIDE, OR IS THIS APPROPRIATE TIME TO TALK ABOUT, UM, IF WE ARE GOING TO ALLOW MULTIPLE DEVELOPERS ON THAT SITE? I KNOW INITIALLY WE WERE MAYBE AROUND A HUNDRED AND TWENTY, A HUNDRED TWENTY NINE HOMES.
UM, ARE WE GOING TO REVISIT THAT LAYOUT ARE ABSOLUTELY.
AND ARE WE LOOKING AT ALLOWING, YOU KNOW, TWO TO THREE BUILDERS TO DEVELOP SO WE CAN HAVE SOME SIMULTANEOUS DEVELOPMENT HAPPENING TO EXPEDITE THE USE? A ABSOLUTELY.
SO WE ARE LOOKING TO, IT'S GONNA BE ONE DEVELOPER THAT'S CHOSEN.
ONE OF THE SCORING CRITERIA IS THAT WE'RE LOOKING AT RIGHT NOW IS MULTIPLE BUILDERS, UH, TO BE INCLUDED IN EACH OF THOSE PROPOSALS THAT COME IN.
SO YOU GET THREE OR FOUR HOME BUILDERS IN THERE, UH, THAT CAN BUILD SIMULTANEOUSLY AND, AND COMPLETE THE NEIGHBORHOOD QUICKLY.
SO YEAH, IF YOU CAN, UM, ONCE THAT'S ON THE STREET TO SEND THAT OUT AND, UM, UM, IF THERE ARE DEVELOPERS THAT Y'ALL KNOW THAT ARE, THAT Y'ALL COMMUNICATE WITH, PLEASE LET THEM KNOW THAT THIS PROJECT IS, IS COMING ONLINE AND TO SIGN UP WITH THE HOUSING DEPARTMENT.
ALL OF THAT WOULD BE ACTIVE, BUT WE NEED AS MANY AS POSSIBLE BECAUSE, UM, WITHOUT THEM DOING THE WORK, WE WON'T HAVE THE PROJECT.
UH, NO OTHER QUESTIONS OR COMMENTS IN THE QUEUE RELATED TO THAT ITEM.
DIRECTOR, YOU HAVE CLOSING COMMENTS BEFORE WE MOVE TO PUBLIC COMMENTS? THE ONLY THING I HAVE IS IN THE REST OF YOUR MATERIAL, THERE ARE TWO MAJOR COMMENTS HERE.
ONE IS THE DEPARTMENT IS VERY SERIOUS ABOUT ENGAGEMENT WITH THE COMMUNITY.
AND JUST TAKE A MINUTE TO LOOK AND SEE HOW MANY ENGAGEMENT ITEMS THERE ARE.
THIS IS NOT A SMALL PART OF THE DEPARTMENT.
IT IS, UH, SOMETHING THAT WE TAKE VERY SERIOUSLY.
WE WANT, WE WANT, WE WANT PEOPLE, THE CONSUMERS, UH, THE DEVELOPERS.
WE WANT PEOPLE TO KNOW ABOUT THE PRO UH, PROJECTS THAT WE HAVE AND THE OPPORTUNITIES FOR, UM, WORKING WITH US.
SO I JUST, IF YOU CHECK, GET A CHANCE TO DO THAT.
AND SECONDLY, IT'S IMPRESSIVE TO ME TO SEE THE NUMBER OF PROJECTS THAT ARE IN THE 70 PLUS PERCENT, UM, GETTING READY TO COME TO CLOSURE.
I KNOW THERE'S A OPENING NEXT WEEK AND ONE THE WEEK AFTER.
SO WE'RE EXCITED ABOUT THE YEARS THEY'VE BEEN IN PROCESS THAT WE'RE ALSO, WE'RE GONNA BE ABLE TO BE MOVING, UM, UH, C CITIZENS INTO THESE PROJECTS.
THOSE ARE THE TWO MAIN ITEMS I HAVE.
THANK YOU FOR YOUR TIME AND WE LOOK FORWARD TO SEEING BEING IN THIS MEETING IN THE FUTURE.
AND, UM, I SEE THE, THE PHOTOS IN THE, UH, UH, HIGHLIGHTS.
I JUST WANNA THANK AGAIN, THE HOUSING DEPARTMENT FOR WORKING WITH MY OFFICE FOR THE DEED RESTRICTION WORKSHOP.
THANKS FOR YOUR ASSISTANCE WITH THAT.
UH, AND THEN, UH, COLLEAGUES AND STAFF MEMBERS, UH, THEY'RE A SERIES OF UPDATES WITH PHOTOS ON MULTI-FAMILY PROJECTS.
UM, IF THEY'RE IN YOUR DISTRICT, PLEASE HIGHLIGHT AND MAKE A NOTE FOR YOUR COUNCIL MEMBER AND BE ON THE STANDBY FOR A, UH, RIBBON CUTTING OF SOME SORT, SORT OR GROUNDBREAKING.
SO THOSE ARE ALWAYS EXCITING, UH, UH, TO NOTE.
AND IF YOU HAVE ANY QUESTIONS AROUND THAT, THE HOUSING DEPARTMENT WILL FOLLOW UP WITH YOU ABOUT THOSE DEVELOPMENTS.
WE DO HAVE 6 1, 2, 3, 5, 6 PUBLIC SPEAKERS, UH, SIGNED UP WITH US TODAY.
I FIRST WANT TO CALL, WHAT'S HER NAME? MS. LAURA GAE.
[00:40:01]
GOOD AFTERNOON.I'M THE EXECUTIVE DIRECTOR OF UP CDC URBAN PARTNERSHIPS COMMUNITY DEVELOPMENT CORPORATION.
I'M GONNA TALK A LITTLE BIT ABOUT THE EAST END MAKER HUB, MYSELF AND MY TEAM.
UM, THE EAST END MAKER HUB IS AN EQUITABLE ECONOMIC DEVELOPMENT PROJECT, BRINGING WORKFORCE DEVELOPMENT TO LOW AND MODERATE INCOME COMMUNITIES.
THROUGHOUT THIS PROJECT, WE ARE EFFECTIVELY BUILDING COMMUNITY WEALTH AND FOSTERING MORE VIBRANT, DIVERSE ECONOMY.
UH, FOR HOUSTON'S FUTURE, THE PROJECT IS IN PARTNERSHIP WITH, UH, TX RX LABS AND UP CDC, UM, WITH TX RX AS THE PROJECT ANCHOR, THE MAKER HUB WAS 95% LEASE WITHIN 10 MONTHS.
AND ITS OCCUPANCY HAS NOT DROPPED BELOW 95% SINCE JUNE OF 2022.
IT IS THE HOME TO OVER 50 MANUFACTURING STARTUPS AND SMALL MANUFACTURING ENTERPRISES.
COMPANIES HAVE REPORTED JOB CREATION OF OVER 500 JOBS AT THE MAKER HUB, AND OVER 700 INDIVIDUALS HAVE BEEN TRAINED AND PLACED IN JOBS OUTSIDE OF THE MAKER HUB.
HOW CLOSE? 85% DID I GET IT? HOW CLOSE WAS I? MAYBE I WASN'T CLOSE.
WAS I CLOSE? HOW DO YOU THINK Y'ALL VERY MUCH FOR YOUR TIME? WAS I CLOSE? DID I SAY YOUR NAME RIGHT? WAS I CLOSE? I DON'T KNOW.
I'M HARD OF HEARING SO I I WAS WALKING.
IS ROLAND VON KOWSKI IS, IS ANYTHING'S GOOD ENOUGH FOR ME? OKAY.
UH, I'LL JUST GO BY VAUGHN FROM NOW ON, I'LL SAVE Y'ALL SOME TIME.
I'M THE PRESIDENT OF TXRX LABS.
I JUST WANTED TO, UH, TAKE A BRIEF MOMENT TO TELL YOU A LITTLE BIT ABOUT WHAT WE DO SO YOU CAN UNDERSTAND, UH, BETTER HOW WE FIT INTO THE EASTON MAKER HUB.
OUR, UM, UH, ORGANIZATION IS A NON FIVE ONE STATE NONPROFIT.
AND WE HAVE, I THINK, A REALLY UNIQUE, UM, APPROACH.
WE GENERATE COMPANIES THAT PRODUCE, UH, MIDDLE CLASS MANUFACTURING JOBS FOR HOUSTON BY HELPING THEM THROUGH THE FIRST KIND OF INNOVATIVE AND INITIAL PROTOTYPING STEPS.
AND WE MARRY THAT WITH JOB TRAINING FOR AT-RISK YOUTH AND INDIVIDUALS WITH, UM, IMPEDIMENTS TO EMPLOYMENT BY PROVIDING TRAINING THROUGH THE PROJECTS WE'RE DOING FOR THOSE COMPANIES AND THEN LINKING THOSE COMPANIES UP WITH THE TRAINEES AS THEY GROW.
UM, YOU KNOW, THE MAKER HUB HAS BEEN A REALLY, UM, DRASTIC LEAP FOR OUR ORGANIZATION BECAUSE WE'RE NOW CO UH, LOCATED WITH 50, UH, DIFFERENT STARTUPS THAT WE'RE BEING ABLE TO PLACE INDIVIDUALS WITH AND ABLE TO DO TRAINING FOR.
AND, UM, THE PROJECT HAS REALLY BEEN, YOU KNOW, A FANTASTIC, UM, OPPORTUNITY FOR US AND WE'VE BEEN ABLE TO TRAIN, UH, YOU KNOW, AN ORDER OF MAGNITUDE MORE PEOPLE THAN WE WERE IN OUR PREVIOUS FACILITY OVER THE YEAR.
OVER THIS YEAR ALONE, WE'LL TRAIN APPROXIMATELY 400 DIFFERENT INDIVIDUALS IN, UM, THINGS LIKE WELDING, SOLDERING, UM, MACHINING, AND OTHER KIND OF CORE SKILLED, UH, CORE, UH, MANUFACTURING OCCUPATIONS THAT CAN GET PEOPLE INTO MIDDLE CLASS JOBS.
UM, THANK YOU VERY MUCH FOR YOUR CONSIDERATION.
THANK YOU MICHAEL GUTIERREZ, GOOD AFTERNOON.
THANK YOU FOR YOUR TIME TODAY.
UH, I AM THE WORKFORCE DIRECTOR AT TXRX AND I COME BY WAY OF WORKFORCE SOLUTIONS.
I'VE WORKED WITH PLENTY OF Y'ALL Y'ALL'S JOB FAIRS AND THINGS OF THOSE NATURES IN THE PAST COUPLE OF YEARS AS A WORKFORCE DIRECTOR.
I JUST WANT TO GIVE SOME MORE DETAIL ON WHAT WE'RE TRYING TO DO WITH THIS.
THESE TRAININGS, WE'RE CREATING APPRENTICESHIP MODELS AND PRE-APPRENTICESHIP MODELS THAT ALLOW INDIVIDUALS, UNDERSERVED INDIVIDUALS TO FIND EMPLOYMENT AND CONTINUE TO GET JOBS TRAINING.
WE'RE LOOKING AT DEVELOPING RIGHT NOW WE HAVE DRONE, UH, TRAININGS ALONG WITH MACHINING TRAININGS.
AND WE'VE JUST INSTITUTED A NEW NDT TRAINING WHERE WE ARE GONNA BE LOOKING AT TRAINING OVER A HUNDRED INDIVIDUALS UNDERSERVED, UH, IN THAT AREA AND SURROUNDING AREAS.
OVER THE NEXT YEAR, WE'RE SERVING, UH, INDIVIDUALS LIKE, UH, STUDENTS THAT ARE, UH, AGING OUT OF THE FOSTER YOUTH SYSTEM.
WE'RE SERVING, UH, ALL WOMEN COHORTS THAT ARE LOOKING TO START MACHINING.
SO WHAT WE'RE DOING IS VERY IMPORTANT AND WE JUST NEED TO MAKE SURE THAT WE HAVE THE CAPACITY TO CONTINUE TO CON TO CONTINUE TO DO THIS AND EXPAND.
I WANT TO THANK YOU SO MUCH FOR YOUR TIME TODAY.
THANK YOU PATRICK ZEL, GOOD TO SEE YOU, PATRICK.
FIRST I'D LIKE TO THANK THE CITY FOR YOUR ASSISTANCE IN HELPING THIS.
UM, WE'RE PASSIONATE ABOUT OUR PROJECT, AS YOU CAN SEE FROM THE FOLKS WHO'VE
[00:45:01]
SPOKEN.I'M GONNA GIVE YOU A COUPLE LITTLE DETAILS JUST SO YOU HAVE A, A FULL UNDERSTANDING OF THINGS.
UM, UP CDC IS ALSO A NON-PROFIT 5 0 1 C3.
WE SPECIALIZE IN ECONOMIC DEVELOPMENT WORK, BUT WE DO THAT BY FACILITATING PROJECTS AND PUTTING TOGETHER FINANCING.
IN THIS CASE, WE'RE THE MANAGERS OF THE EAST END MAKER HUB.
THE MAKER HUB WAS FUNDED THROUGH, UM, A PRETTY COMPLEX CAPITAL STACK.
WE HAD A $22.7 MILLION SECTION 1 0 8 LOAN THAT, YOU KNOW, ABOUT 1.39 COMMUNITY BLOCK FUNDS.
WE HAVE A $5 MILLION EDA GRANT.
WE GOT ABOUT $8.4 MILLION IN NET NEW MARKET TAX CREDITS AND ABOUT 1,000,005 IN THE END DEVELOPER EQUITY.
UH, THE MAKER HUB WAS PLANNED TO BE A SELF-SUSTAINING PROJECT THAT WOULD COVER THE COST OF OUR SECTION 1 0 8 LOAN THROUGH OUR OPERATIONS, UH, THROUGH LEASE UP IF WE WERE SUCCESSFUL.
AND WE HAVE BEEN VERY SUCCESSFUL.
UM, IT, YOU KNOW, AS YOU HEARD, IT WAS SET UP WITH A RATE LOCK WE'RE SUBSTANTIALLY COMPLETE IN JUNE OF 21.
AND, UH, WE DIDN'T FIND OUT UNTIL THE SPRING OF 22 THAT WE COULDN'T LOCK IN.
AND IF YOU LOOK AT THAT RATE STARTING RIGHT AT DECEMBER 21, YOU KNOW, FOR THE NEXT SEVERAL MONTHS THAT RATE DOUBLED AND DOUBLED AND DOUBLED, UM, BECAUSE OF NO RATE LOCK.
UM, AND SO NOW WE'RE MORE THAN, UH, FIVE TIMES WHAT WE THOUGHT WE WERE GONNA PAY.
WE HAVE CONTINUED TO PAY IN AT OR ABOVE, UH, WHAT WE HAD ORIGINALLY CONTEMPLATED, UH, YOU KNOW, I DUNNO IF YOU'RE INTERESTED IN THE DETAIL, BUT THE WAY IT WORKED WAS, UH, IT WAS BASED ON L-I-B-O-R.
SO IT WAS L-I-B-O-R PLUS 0.2% FROM HUD, PLUS 1% FROM THE CITY.
AND SO L-I-B-O-R HAD BEEN RUNNING RIGHT ABOUT 0.2%.
SO THAT'S WHAT GETS IT UP TO ABOUT 1.5%.
UH, CURRENTLY LIB I BOR HAS BEEN REPLACED BY THE THREE MONTH TREASURY.
WE'RE RIGHT AT ABOUT FIVE POINT HALF PERCENT BASE.
UH, PLUS THE 1.2 WOULD PUT US AT ABOUT 6.7%.
SO THESE DISCOUNTS HELP US GREATLY.
UH, TO SUMMARIZE, WE WERE AT ABOUT 315,000 WORTH MILLION FIVE.
CAN I STOP? UM, AT ANY RATE, WE'RE VERY GRATEFUL.
IT'S MADE A BIG IMPACT AND WE'RE CONTINUING TO MAKE IMPACT.
WE HAVE GREAT PARTNERS, WE'RE ALL VERY DEDICATED, AND WE WANT TO KEEP, UH, MAKING A BIG DIFFERENCE FOR THE CITY.
SO ANYTIME WE LOSE SOMEBODY, WE REPLACE 'EM.
SO WE'RE WONDERFUL, WHICH WE'LL TRY HARD.
AND THEN IF YOU, UM, IF YOU HANG BACK AFTER THE MEETING, I'M SURE THERE'S SOME OF MY COLLEAGUES OR THEIR STAFF MEMBERS MAY HAVE ADDITIONAL QUESTIONS.
SO WE'LL MOVE ON TO THE NEXT SPEAKER.
IT'S, UH, AN HONOR TO BE HERE.
UM, MY NAME IS NEIL RADCLIFFE, TRYING TO GET THIS CHAIR WORKED OUT FOR A SHORT GUY.
UM, IT'S, IT'S GREAT TO BE WITH YOU.
I'M REALLY HONORED TO REPRESENT UP CDC AND, AND I JUST WANT TO TAKE A MOMENT TO AMPLIFY A COUPLE OF POINTS.
NUMBER ONE, THESE FOLKS ARE PRETTY MODEST ABOUT WHAT THEY'RE DOING, BUT I'VE BEEN INVOLVED IN ECONOMIC DEVELOPMENT AND AFFORDABLE HOUSING FOR ALMOST 30 YEARS NOW.
I'M ABOUT TO TURN 60, UH, PRETTY OLD DUDE.
AND THIS IS THE BEST ECONOMIC DEVELOPMENT AND REVITALIZATION PROGRAM I HAVE EVER SEEN BY A LAR LARGE, LARGE QUANTUM.
SO WE'VE DONE THE CITY'S USED 1 0 8 FINANCING TO DO OTHER PROJECTS.
WHEN I WAS THE HOUSING DIRECTOR, WE DID THE JW MARRIOTT, RIGHT? AND WE CREATED ABOUT 200 JOBS, WHICH WERE IMPORTANT JOBS, CLEANING, HOTEL ROOMS, AND DOING WORK SUCH AS THAT.
BUT WHAT THEY'RE CREATING HERE IS THEY'RE TAKING FOLKS WITH HIGH SCHOOL EDUCATIONS AND GETTING THEM INTO HIGH TECH MANUFACTURING, DOING 3D PRINTING.
THEY'VE GOT A STARTUP COMPANY OUT THERE THAT'S DOING 3D PRINTING OF HUMAN HEART VALVES, REALLY COOL, CUTTING EDGE STUFF.
AND THEY'VE CREATED AN ECOSYSTEM OF STARTUP COMPANIES WITH TXRX, WHICH IS DOING PHENOMENAL JOB TRAINING AND EDUCATION IN A KIND OF, UH, BLEND OF JOB TRAINING, EMPLOYMENT STARTUP MANUFACTURING, UH, AN AN ENVIRONMENT THAT IS REALLY UNIQUE AND, AND HUD RECOGNIZES THAT THIS PROJECT IS LIKE THEIR, IT'S THEIR POSTER CHILD FOR THE ONE WEIGHT PROGRAM NATIONALLY.
SO I TOOK PATRICK TO WASHINGTON DC TO MEET WITH THE GENTLEMAN WHO RUNS THE WHOLE 1 0 8 PROGRAM FOR THE WHOLE COUNTRY TO TALK WITH THEM ABOUT SOLVING THIS PROBLEM.
AND TO AMPLIFY A VERY GOOD QUESTION THAT COUNCIL MEMBER RAMIREZ ASKED EARLIER, THE WAY HUD ADVERTISES THIS PROGRAM IS YOU GET YOU, IF YOU DO A 1 0 8 LOAN, YOU HAVE AN INITIAL MAY I CONCLUDE BRIEFLY, DIRECTOR PLEASE SHOULD CONCLUDE YOU HAVE AN INITIAL VARIABLE RATE, INTEREST RATE, BUT THEY ADVERTISE IT AS EVERY YEAR THEY WILL DO A LARGE BOND OFFERING THAT ALLOWS YOU TO FIX YOUR INTEREST RATE ONCE YOUR PROJECT IS IS STARTED.
THAT'S HOW THEY, THEY ADVERTISE THE PROGRAM AND THEY'VE BEEN EXPLAINING IT THAT WAY AND ALL THEIR
[00:50:01]
MATERIALS FOR YEARS.BUT BECAUSE OF CRAZY MARKET CONDITIONS, WHEN WE TALKED TO HUD AT DC THEY HAVEN'T BEEN ABLE TO DO THE, THE HIGH END, UH, SECURITIES OFFERING THAT ALLOWS THAT FIXED RATE.
AND SO THESE GUYS HAVE GOTTEN KILLED.
AND YOU KNOW, THE, THE BOTTOM LINE IS THE PROJECTIONS WERE THAT IT WAS GONNA COST ABOUT $315,000 PER YEAR FOR INTEREST AND NOW IT'S 1.5 MILLION.
SO EVEN THOUGH NOT ONLY HAVE THEY, AS DIRECTOR NICHOLS SAID, THEY'VE, THEY'VE MANAGED THIS RESPONSIBLY, BUT THEY HAVE JUST BLOWN OUT OF THE WATER, UH, THE JOB CREATION METRICS, UH, AND THE GOOD WORK THAT, THAT ANY SIMILAR PROJECT IS DONE AROUND THE COUNTRY, BUT THESE VARIABLE RATES ARE KILLING THEM.
SO I WANT TO THANK YOU, UH, AND SAY THANK YOU TO THE DEPARTMENT FOR WORKING VERY, VERY DIFF DILIGENTLY WITH US.
THESE LOANS ARE REALLY COMPLICATED AND THEY'VE DONE A WONDERFUL JOB OF HELPING US BRIDGE THE GAP SO THAT WE CAN HAVE THIS GRANT TO COVER THE INTEREST CARRY SO THAT THE PROJECT DOESN'T FAIL.
I MEAN, THIS WOULD ECONOMICALLY DESTABILIZE THE PROJECT AND WE REALLY NEED THIS HELP AND WE'RE VERY GRATEFUL FOR IT.
YEAH, IT WAS LIKE OUR PUBLIC COMMENTS.
ANY OTHER MEMBERS OF THE PUBLIC? NO SCHEDULED HOUSING AND AFFORDABILITY MEETING NEXT MONTH.
THE NEXT HOUSING AFFORDABILITY MEETING WILL BE HELD ON AUGUST THE 20TH, 2023 AT 10:00 AM THE DISTRICT F OFFICE WILL BE SENDING OUT ADDITIONAL INFORMATION.
THANK YOU AGAIN TO EVERYONE FOR BEING HERE TODAY.
IF THERE ARE NO OTHER COMMENTS OR QUESTIONS, THIS MEETING IS ADJOURNED.