[Resilience Committee on December 11, 2025.]
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TO BE HERE TODAY.UM, I AM TWILA CARTER, CHAIR OF THE COMMITTEE.
UM, VICE CHAIR IS AB ABBY CAYMAN, WHO IS NOT WITH US TODAY, BUT WE HAVE COUNCIL MEMBER ALCORN AND STAFF FROM COUNCIL MEMBER CASTILLO'S, OFFICE, COUNCIL MEMBER AMY VICE MAYOR PROTE, AMY PECK, MAYOR PRO TEM MARTHA CASTEX TATUM STAFF, AS WELL AS COUNCIL MEMBER JULIAN RAMIREZ'S STAFF.
UM, I AM SUPER EXCITED ABOUT THE PRESENTATION TODAY, UH, FUTURE PROOFING HOUSTON'S HOMES, COMMUNITIES, AND ECONOMIC ASSETS.
AND RICHARD CELINE IS OUR PRESENTER AND SUPER EXCITED TO, TO, UH, SEE WHAT YOU'VE GOT FOR US TODAY, RICHARD.
AND, UM, HE'S GOT QUITE A PRESENTATION.
HE SAID THAT HE'S NOT GONNA GO THROUGH EACH SLIDE WORD FOR WORD, BUT HE'S REALLY BRINGING FORTH A LOT OF REALLY GOOD INFORMATION.
AND, UM, WE WELCOME YOU TODAY, RICHARD.
WHICH SIDE YOU GONNA SIT ON? SLIDES ARE UP HERE.
WE'RE NOT GONNA MAKE, WE'RE NOT GONNA, WE'RE NOT GONNA MAKE YOU STAND.
SO YEAH, JUST SAY ADVANCED SLIDE OR NEXT SLIDE, AND WE'LL, WE'LL GET YOU MOVING.
SO, UM, UH, MADAM CHAIRMAN, FIRST OFF, THANK YOU.
MOVE OVER TO THE, THERE YOU GO.
UM, FIRST OFF, THANK YOU FOR YOUR HOSPITALITY TODAY AND FOR YOUR ENCOURAGEMENT.
ALSO, UH, TO COUNCIL MEMBER ALCORN.
BOTH OF Y'ALL ARE INDIVIDUALS WHO I, UH, HAVE GOTTEN TO KNOW SINCE COMING BACK TO HOUSTON, MY FOURTH GENERATION HOMETOWN.
UM, AND, UH, I WOULD SAY THIS BOTH IN PUBLIC AND PRIVATE.
SO, SINCE I'LL TAKE THE, THE PUBLIC LIBERTY, UH, THE TWO OF YOU HAVE BEEN ALONG WITH YOUR OTHER COUNCIL MEMBERS, HAVE TRULY DONE SOME MAJOR HEAVY LIFTING SINCE HURRICANE HARVEY.
AND THE SAD TRUTH IS, WE'RE GONNA PROBABLY AS WE'LL GO THROUGH THIS A LITTLE BIT, UH, NEED TO CONTINUE TO KEEP OUR FOCUS.
BUT THANK YOU FOR THE WORK OF THIS COMMITTEE.
THANK YOU FOR YOUR COLLEAGUES, UH, WHO HAVE KEPT THE FOCUS ON THAT WE NEED TO REMAIN, UH, RESILIENT.
UM, YOU CAN READ FASTER THAN I CAN TALK, OR ACCORDING TO MY WIFE, I WILL SLOW DOWN AND TALK AT A SPEED
BUT, UM, I THOUGHT WHAT WE OUGHT TO COVER ARE, UM, SOME CURRENT REALITIES WHY WE ARE SUGGESTING A, UM, UH, MAYBE AN ENHANCED STRATEGY, UH, AT THE CITY, THE COUNTY, THE REGIONAL LEVEL, AND THEN SOME THINGS THAT WE THINK COULD BE PUT IN PLACE.
UM, SO THIS IS THE, THE AGENDA THAT WE'RE GONNA COVER.
I DID CUT IT DOWN, UH, MADAM CHAIRMAN FROM 72 SLIDES IN 30 MINUTES OF FULL MOTION VIDEO TO A HANDFUL.
UM, WE'RE A HOUSTON BASED NATIONAL ORGANIZATION.
UM, IT, WE OPERATE LIKE A, UH, THINK TANK AND A DO TANK.
THE DO TANK IS ROAR PARTNERS, AND THE THINK TANK IS FUTURE PROOFING AMERICA.
SO IT'S A 5 0 1 C3 UNDER FUTURE PROOFING AMERICA.
THAT INCLUDES A NUMBER OF, UH, FIRMS AND INDIVIDUALS THAT YOU'RE, YOU'RE, UH, AWARE OF, LIKE GENSLER AND OTHERS HERE IN OUR OWN BACKYARD.
BUT IT ALSO REPRESENTS, UM, A SET OF NATIONAL STAKEHOLDERS.
UM, OUR, OUR CHAIRMAN IS THE FORMER CEO OF MUNICH REUS, WHICH IS THE LARGEST GLOBAL REINSURANCE FIRM IN THE, YOU KNOW, OUT THERE.
UM, AND I'LL COME BACK TO THE, THE ISSUES ABOUT INSURANCE VERSUS REINSURANCE.
UM, WE HAVE A NUMBER OF INDIVIDUALS THAT REPRESENT INSURANCE, MORTGAGE BANKING, UH, TRADITIONAL BANKING AND NEW INVESTMENT FINANCE, UM, MANUFACTURING, ALL OF WHAT WE FELT NEEDED TO BE AROUND THE TABLE, BECAUSE THAT'S REALLY WHAT THIS HAS BECOME.
IT'S NO LONGER JUST A SILO OF GOVERNMENT.
THIS IS TRULY A, UM, UH, IT NEEDS TO BE AND HAS NEEDED TO BE, UH, AN INTEGRATION OF A LOT OF EXPERTISE AND CAPITAL SOURCES.
ONE OF OUR NEWEST, UH, BOARD MEMBERS IS DAVID MARAD, WHO RETIRED ABOUT SIX, SEVEN MONTHS AGO.
DAVID WAS THE FEMA ADMINISTRATOR FOR RESILIENCE, MITIGATION AND INSURANCE, MEANING THE NATIONAL FLOOD INSURANCE PROGRAM.
SO YOU KIND OF SEE WE'VE TRIED TO
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BRING TOGETHER, UM, A SET OF STAKEHOLDER REPRESENTATIVES.THE OTHER PART OF THIS, AS I MENTIONED, IS, SO ROAR IS THE DO TANK.
THAT'S THE ONE VERY FOCUSED ON PROJECTS AND GETTING THINGS DONE.
UM, THE COLLABORATION UNDER FUTURE-PROOFING AMERICA, UM, IS MADE UP OF A SIGNIFICANT AMOUNT OF EXPERTISE, AGAIN, IN THESE DIFFERENT SILOS.
BUT MORE IMPORTANTLY, WHAT THEY'VE BEEN DOING, UM, SOME OF IT PRIVATELY, A LOT PUBLICLY, IS IF YOU SEE ON THE LEFT HAND SIDE, THERE ARE FIVE TOPICS.
AND THESE GO FROM HOW DO YOU MOVE, UM, UH, STANDARDS OF PRACTICE.
UH, LET ME JUST MAKE IT SIMPLE.
WE'VE IDENTIFIED 2,600 BUILDING CODES IN THE UNITED STATES.
THIS IS EVERYTHING FROM THE INSTITUTE OF BUSINESS IN HOME SAFETY, WHICH WE'LL TALK ABOUT IN A FEW MINUTES, WITH THEIR FORTIFIED ROOFS.
THIS IS ISO, THIS IS A ST, ALL THESE ACRONYMS. THERE'S 2,600 STANDARDS IN BUILDING CODES.
AND WHAT WE'VE HEARD FROM INSURANCE AND REINSURANCE FINANCIAL INSTITUTIONS, APPOINTED OFFICIALS IS LIKE, LIKE, HOW DO WE MAKE SENSE OF IT? UM, JUST THIS PAST TUESDAY, WE HOSTED A NATIONAL FIRESIDE WITH THE GLOBAL HEAD OF INFRASTRUCTURE AND PUBLIC FINANCE FOR FITCH RATINGS.
THAT'S ONE OF THE THREE MAJOR RATINGS, FITCH STANDARDS AND POOR.
AND FITCH HAS ROLLED OUT A FRAMEWORK STARTING THIS YEAR, REALLY IN 2026, THAT ESSENTIALLY, UH, TERM ADDRESSES AND ACKNOWLEDGES THAT IF YOU MAKE AN INVESTMENT IN RESILIENCE IN YOUR INFRASTRUCTURE, IT WILL CHANGE THE FILTER BY WHICH A RATING IS PRODUCED.
AND WHY IS THAT IMPORTANT? YOU WANT THE BETTER RATING.
'CAUSE IT BRINGS THE COST OF CASH, COST OF CAPITAL DOWN, BUT IT ALSO CREATES A, A, UM, SOMEWHAT OF A HEADWIND FOR OTHERS TO PARTICIPATE.
SO YOU SEE WHO WE'VE ASSEMBLED HERE.
SOME OF THEM ARE BASED HERE IN HOUSTON, SOME OF THEM ARE, YOU KNOW, DIFFERENT PARTS OF THE UNITED STATES, BUT THEY ARE ALL INTEGRATED AROUND ONE SIMPLE, UH, METRIC, A ONE TO 11 OR BETTER COST BENEFIT.
IF YOU AND I INVEST AHEAD OF THE CURVE AHEAD OF THE NEXT EVENT, WE WANNA BRING DOWN THE COST OF RECOVERY AND REBUILDING BY $11.
AND THAT SHOULD BE THE METRIC BY WHICH WE OPERATE ON NEXT.
SO HERE'S PART OF THE STARK REALITY THAT PUT A LOT OF THIS IN MOTION, AND IT REALLY STARTED WHEN I CAME BACK TO HOUSTON, UM, 48 HOURS AFTER HURRICANE HARVEY.
AND IT'S HARD FOR A FOURTH GENERATION HOUSTONIAN, MY GRANDFATHER, UH, AND GREAT-GRANDFATHER STOOD OUTSIDE THIS BUILDING AND PUT THE ORIGINAL STONE IN THIS BUILDING.
OUR FAMILY GOES BACK FOUR GENERATIONS.
THE REPUBLIC BANK BUILDING THAT LOOKS LIKE THE GOTHIC CHURCH OVER HERE.
OUR FAMILY PUT THE 72 TONS OF LEAD COAT OF COPPER.
SO I'M, I'M KIND OF INVESTED IN MY HOMETOWN AS MUCH AS WE ARE INVESTED IN OTHER PLACES ACROSS THE COUNTRY.
THE COUNTRY AS A WHOLE HAS LOST WELL OVER $5 TRILLION SINCE THE LATE 1980S.
50% OF THAT HAS JUST BEEN IN THE PAST 10 YEARS, MEANING $2.5 TRILLION.
THERE'S NO WAY THAT A CITY, A COUNTY, A FEDERAL GOVERNMENT CAN KEEP UP WITH THAT.
UM, NEXT, SO, UM, WE IDENTIFIED THE SIX TR, UH, KIND OF CHALLENGES.
AND, UM, COUNCIL MEMBER ALCORN, I AM NOW REFERRED TO AS THE VIN DIESEL OF DOOM WHEN I START SHOWING SOME OF THESE SLIDES, OKAY? UM, I WAS ACCUSED A LITTLE BIT AGO OF, UH, WHY ARE YOU MAYOR OUT IN THE PARKING LOT? UM, I'LL PUT MY GLASSES ON, ALRIGHT? UM, BUT THESE SIX ISSUES IMPACT EVERY PART OF THIS CITY, EVERY PART OF THIS NATION.
UM, AND WHEN I ASK THIS QUESTION, HOW MANY PEOPLE, YOU KNOW, IN A ROOM HAVE HAD THEIR INSURANCE POLICY PREMIUMS GO UP? THERE ISN'T A HAND THAT DOESN'T GO UP, OKAY? UM, MORTGAGES ARE BEING REPRICED.
WHAT'S WORSE IS, AND YOU'LL SEE THIS IN A MOMENT, IS THE VALUE OF YOUR HOME.
THE VALUE OF YOUR BUILDINGS IN HIGH RISK PRONE AREAS IS BEGINNING TO COME DOWN.
AND, AND YOU DON'T WANT THAT IN A REAL ESTATE ENVIRONMENT THAT NO MATTER WHAT, UH, IS IMPACTED BY ALL THESE OTHER TYPES OF, UH,
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OCCUPANCY OR OTHER TYPES OF ISSUES.NOW, LET ME MAKE A POINT HERE.
UM, ALL OF THESE SIX ISSUES ARE TERRIBLE.
THEY'RE EVEN WORSE FOR LOW TO MODERATE INCOME COMMUNITIES, AND THE IMPACT ON LOW TO MODERATE INCOME COMMUNITIES IS EXPONENTIALLY HIGHER, AND IN CERTAIN CASES, SOMETIMES TWO TO THREE, UH, TIMES HIGHER.
SO WE DESCRIBE THIS AS KIND OF WHY THIS, WHY NOW, ALRIGHT? UM, AND I WILL ADMIT THAT BEING CALLED THE VIN DIESEL OF DOOM IS, UM, PROBABLY APPROPRIATE FOR THE MOMENT.
IF YOU LOOK AT THIS MAP, LOOK AT HOUSTON AND HARRIS COUNTY.
ALRIGHT, WE'RE, WE'RE, WE'RE KIND OF IN THE DARK RED, SO ARE MOST OF THE COAST, OBVIOUSLY.
ALRIGHT? OUR RISK PROFILE GOING FORWARD FOR THE NEXT, AT LEAST 15 TO 18 YEARS IS NOT GOOD.
ALRIGHT? IT DOESN'T MEAN WE, IT DOESN'T COUNT ON OR REFLECT THE ACTIVITIES THAT YOU ALL HAVE INVESTED IN, UH, THE FLOOD CONTROL DISTRICT OR OTHERS.
BUT THE FACT OF THE MATTER IS, WE LIVE IN A HIGHLY PRONE AREA FOR DISASTERS, BUT ALSO THE DISASTERS THAT WE HAVE TO TAKE A LOOK AT, UM, ARE NOT JUST THE ONES THAT COME IN FROM THE GULF OR COME IN FROM THE NORTH OR COME IN FROM A WILDFIRE.
I, I, AGAIN, I'M RELUCTANT TO KEEP ON SAYING THIS, BUT, UM, DO Y'ALL REALIZE HOW MANY PIPES ARE UNDERNEATH US IN HOUSTON? OKAY? UM, TWO YEARS AGO, THREE YEARS AGO, YOU ALL MAY RECALL THAT THERE WAS A MASSIVE EXPLOSION ON THE GOAL ON THE SHIP CHANNEL, ALRIGHT? WHICH SHUT THE SHIP CHANNEL DOWN FOR ABOUT SIX DAYS.
WHAT WE LOOK AT IS, IS NOT JUST THE IMPACT ON INSURANCE OR, OR, YOU KNOW, THAT PART OF IT, WE'RE LOOKING AT THE IMPACT ON JOBS, EMPLOYMENT TAX BASE.
SO IF YOU LOOK AT THIS KIND OF MAP, YOU REALIZE THAT WE ARE IN A CLUB THAT HAS HIGH RISK, BUT THERE ARE THINGS THAT CAN BE DONE ABOUT IT AND SOME THINGS THAT ALREADY ARE UNDERWAY.
SO I'M GONNA, YOU'VE GOT COPIES OF, UH, THIS PRESENTATION.
ALL I'M GONNA SAY TO YOU IS, THERE IS NO GRAPHIC ON THESE PAGES THAT'S IN THE RIGHT DIRECTION.
ALRIGHT? SO THE LOST CLAIMS ARE GOING UP, BUT ALSO WHAT'S WORSE IS THE UNINSURED LOST CLAIMS. IF YOU HAVE TO MAKE A CHOICE ABOUT WHAT YOU'RE GONNA SPEND MONEY ON, AGAIN, WHETHER IT'S LOW TO MODERATE INCOME OR OTHER PARTS OF HOUSTON, IF YOU HAVE TO MAKE A CHOICE OF WHAT YOU'RE GONNA SPEND INSURANCE ON, AND THEN YOU GET HIT WITH SOME FORM OF A FLOOD OR A WINDSTORM OR WHATEVER IT MAY BE, AND YOU DECIDE TO BE UNINSURED, THE CONSEQUENCES BECOME A ALMOST CIRCULAR WAY OF LEAVING YOU IN GENERATIONAL, UM, UH, WEALTH CHALLENGE.
MEANING YOU'RE, YOU'RE, YOU'RE LOSING THE ABILITY TO, TO GET OUT OF THAT, UH, CRUX.
UH, THE OTHER PART IS, YOU KNOW, WE'VE LOOKED AT WHERE FEDERAL, STATE, AND LOCAL, UH, FUNDING, HOW IT'S IMPACTED THOSE GOVERNMENTS.
THEN WHAT WE STARTED TAKING A LOOK AT IS, YOU KNOW, SOME OF THESE FEATURES THAT, I DON'T KNOW IF COUNCIL IS HEARING THIS FROM OTHERS IN APOLOGIES IF I'M BEING REPETITIOUS, BUT I WOULD SAY THE MORE I'VE GONE AROUND THE COUNTRY AND MORE, I'VE SAT IN DIFFERENT, UH, FORMS AND SESSIONS HERE IN GREATER HOUSTON.
WE DON'T TALK ABOUT THE INSURANCE AS MUCH AS WE SHOULD, AND NOT FROM, MY GOD, I CAN'T GET INSURANCE, BUT FRANKLY, THE ROLE OF INSURANCE AS A STRATEGIC PARTNER IN THIS, AND AGAIN, WE'LL TALK ABOUT THAT.
UM, I, I DON'T REMEMBER THE PRECISE NUMBER AND I WANNA SAY IT WAS NORTH OF 28%.
SO DON'T HOLD ME TO THIS, BUT AFTER HURRICANE HARVEY, COUNCIL MEMBER ALCORN, THE NUMBER OF PEOPLE THAT WALKED FROM THEIR HOMES WAS SIGNIFICANT.
MATTER OF FACT, OUR OLD HOME IN MEYERLAND, THE, UH, THE FOLKS THAT BOUGHT IT FROM US, MADAM CHAIRMAN, WALKED AND IT SAT EMPTY FOR SIX YEARS.
SO THAT HAS A, AGAIN, CORRESPONDING TRAILING IMPACT TO IT.
AND SO DOES THE FACT THAT ASSET DEVALUATION, WHICH MEANS THAT THESE ASSETS, IT'S NOT JUST HO A HOME, IT'S A PORTFOLIO, HOMES OR PORTFOLIO OF BUILDINGS, WHATEVER THE PORTFOLIO IS.
WE HAVE ALWAYS IN THE UNITED STATES RELIED ON THIRD PARTY INVESTMENT
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HOUSES AND INVESTORS, WHETHER IT'S JP MORGAN CHASE OR GOLDMAN SACHS OR BLACKSTONE, BLACKROCK, VERY LARGE INVESTMENT HOUSES ARE A PART OF HOW WE MOVE PROJECTS, WHETHER THEY'RE RESIDENTIAL OR COMMERCIAL, EVEN INDUSTRIAL.AND ESPECIALLY IN THE PUBLIC SECTOR.
HERE'S THE PROBLEM IS IF MY PORTFOLIO, IF WHAT I OWN IN THIS BUCKET STARTS REDUCING IN THE AMOUNT OF MONEY THAT IT WILL EARN TO PAY BACK THE BONDS, IT CREATES A SIGNIFICANT CHALLENGE.
AND THAT'S BEEN UNDERWAY QUIETLY IN HOUSTON, IN LOTS OF DIFFERENT PARTS OF THE CITY.
SO WHAT WE THEN HAD TO TAKE A LOOK AT IS WHO PLAYS A ROLE HERE? WHO PLAYS A ROLE? ONE OF THE BIGGEST ROLES, AND BECAUSE AS A FOURTH GENERATION HOUSTONIAN, I'M PRETTY AWARE LIKE YOU ARE, IS THE REAL ESTATE COMMUNITY.
WE RELY ON THE REAL ESTATE COMMUNITY TO BUILD HOUSES.
WHETHER THEY'RE SITTING ON, YOU KNOW, $2 MILLION HOMES TO AFFORDABLE HOUSING, TO MIXED USE DEVELOPMENTS TO, YOU KNOW, UH, SPORTS COMPLEXES.
REAL ESTATE ULTIMATELY HAS TO MAKE A DECISION HOW THEY'RE GOING TO PAY FOR BUILDING SOMETHING.
AND IF I'M ASKING THEM NOW, AND I'M TO LEAN INTO THIS A LITTLE BIT MORE AND SPEND WHAT COULD BE 20 TO 30% MORE TO MAKE IT MORE RESILIENT, THEY'RE, THEY'RE, THEY'RE NOT GONNA DO IT.
NOT OUT OF A NEGATIVE REASON OTHER THAN IT JUST WON'T PENCIL OUT PER SE.
IT WON'T CREATE AN ECONOMIC INCENTIVE.
AND THAT'S ONE OF THE PIECES THAT WE'VE BEEN WORKING ON WITH THE REAL ESTATE COMMUNITY, IS TO FIND WAYS TO INCENTIVIZE THEM TO OVERCOME THIS.
THE SECOND PART OF THIS IS YOU ALL, LIKE EVERYBODY ELSE ACROSS THIS COUNTRY, KIND HAVE BEEN ON THE EAST COAST.
MADAM AORN TOO LONG, Y'ALL, ALRIGHT? UM, THE FACT OF THE MATTER IS THAT ELECTED AND APPOINTED OFFICIALS THAT WE INTERVIEWED AND WENT TO THE NATIONAL ASSOCIATION OF, YOU KNOW, THE, THE, THE MAYORS, THE COUNTY EXECUTIVES, EVERY SURVEY KEEPS ON SAYING, WE ARE TIRED, RICHARD, OF HAVING TO GO BACK TO THE TAXPAYER AND CONSTANTLY PUT A FUND TOGETHER TO REBUILD IT.
UM, AND THEN WHAT WE STARTED LOOKING AT ARE THE ECONOMIC, UM, SECTORS, OUR CLUSTERS, ENERGY, HEALTHCARE.
Y'ALL ARE AWARE, HAVING ONE OF MY OTHER CAREERS WAS FIVE AND A HALF YEARS AS THE ASSISTANT TO THE PRESIDENT OF MD ANDERSON CANCER CENTER AFTER HURRICANE HARVEY.
WE COULD NOT RECRUIT PEOPLE TO COME HERE JUST YET.
ALRIGHT? THE HURRICANE BEFORE AND THE FLOOD, ALRIGHT, Y'ALL ARE AWARE WE LOST $10 MILLION RESEARCH MICE THAT WERE BEYOND, RIGHT? SO WHAT WE'RE LOOKING AT NEXT SLIDE ARE THESE CONSEQUENCES OF WHAT HAPPENS TO COMMUNITIES.
ALRIGHT? UM, YOU'LL SEE THE DETAILS TO THIS, BUT WHAT WE'RE ESSENTIALLY SAYING IS FOR CITY COUNCIL COUNTY, THE REGION TO DO THIS ALONE AS A GOVERNMENTAL SET OF BODIES AND INTERESTED PARTIES MISSES THE OPPORTUNITY TO LEVERAGE AND BRING IN THE OTHER ASSET HOLDERS, OF WHICH THE MAJORITY OF ASSETS IN HOUSTON, MUCH LESS TEXAS, ARE THE PRIVATE SECTOR ASSET, UH, OWNERS AND AND PLAYERS.
SO HERE'S A, ANOTHER SET OF REALITIES.
WE, IN HOUSTON, AND YOU CAN SEE THIS ON THE MAP THAT'S IN GREEN.
WE IN HOUSTON HAVE BEEN SIGNIFICANTLY RELIANT SINCE 2021 AND FRANKLY A LITTLE BIT BEFORE THAT ON FEMA FOR FUNDING AND HELPING INDIVIDUALS, FAMILIES, AND SMALL BUSINESSES RECOVER.
WE ARE ONE OF THOSE LOCATIONS IN THE COUNTRY THAT ARE PROPORTIONATELY HIGHER THAN ANY PLACE ELSE.
ALRIGHT, SLIDE GRAPHIC TO THE NEXT OF IT.
AS I SAID, SAID TO THE CHAIRWOMAN A LITTLE BIT AGO, AS WE'RE SITTING HERE, THE WHITE HOUSE IN A FEMA ARE ROLLING OUT THEIR REORGANIZATION OF FEMA AND THE REORGANIZATION OF THE WHOLE OF GOVERNMENT.
I'M NOT GONNA SAY ANYTHING THAT WILL SHOCK YOU, BUT YOU COULD NO LONGER RELY ON THE FEDERAL GOVERNMENT AS YOU ONCE HAVE.
AND THE PROBLEM IS, WE IN CERTAIN PLACES ACROSS THE COUNTRY, BECAME SO RELIANT UPON THESE FEDERAL DOLLARS THAT THAT GAP IS WHAT WE'RE GONNA TALK A LITTLE BIT ABOUT.
UM, THE FACT OF THE MATTER IS THAT, YES, UH, WHAT WAS ANNOUNCED IS, ONE, A HIGHER THRESHOLD FOR THE ELIGIBILITY OF A PRESIDENTIAL DECLARATION.
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YOU SHOULD KNOW THAT THAT ISN'T REALLY COMPLETELY A SHOCK BECAUSE A LOT OF THE STORMS AND EVENTS THAT HAVE OCCURRED IN HOUSTON HAVE NOT BEEN AT PRESIDENTIAL LEVEL.THEY'VE BEEN AT STATE OR ANOTHER LEVEL OF ELIGIBILITY BELOW PRESIDENTIAL ELIGIBILITY.
YOU GET TO PAY FOR IT, IT MEANS THAT THE FEDERAL DOLLARS DON'T SHOW.
ALRIGHT? SO WE'RE NOW IN A MAJOR RESTRUCTURING, BUT I LOOK AT IT AS AN OPPORTUNITY.
SO YOU'RE GONNA HEAR ME SAY THIS OVER AND OVER AND OVER AGAIN TODAY.
UM, AND AGAIN, YOU KNOW, WANNA LEAVE TIME AND DEFINITELY HAVE Y'ALL INTERRUPT AND ASK QUESTIONS.
CAPITAL IS NOT THE ISSUE AND IT NEVER HAS.
IT'S, IF WE ONLY LOOK AT THIS NARROW BAND OR NARROW SLICE OF DEPARTMENTS AND AGENCIES TO, TO GO AFTER THAT FUNDING, IT BECOMES VERY LIMITED.
AND, AND THAT'S BEEN ONE OF OUR, UH, I GUESS MOST IMPORTANT PIECES OF WORK THE PAST THREE YEARS IS THERE ARE AVENUES FOR LEVERAGING DIFFERENT SOURCES OF FUNDING.
ONE OF THE PROBLEMS IS, WAIT A SECOND, RICHARD.
THE ELIGIBILITY OF ALL OF THIS IS ALRIGHT.
THAT'S PART OF WHAT WE'RE DOING NOW IS TRYING TO HARMONIZE, LIKE WHAT'S THE ELIGIBILITY.
SO WHEN I SAY CAPITAL IS NOT THE ISSUE, WE FORMED, UH, WITHIN FUTURE PROOFING AMERICA ON A NATIONAL BASIS, WHAT WE CALL THE RESILIENCE CAPITAL INVESTMENT STACK WORKING GROUP.
MEANING THAT THE ONLY WAY FOR THE CITY, THE COUNTY, THE REGION, THE PRIVATE SECTOR INDUSTRY AND ALL IS THESE ARE DIFFERENT FORMS OF CAPITAL THAT HAVE TO BE PACKAGED.
UM, AND WE'VE LOOKED AT THOSE IN, UH, VERY, UH, UH, UNIQUE WAYS.
ONE OF WHICH IS THAT BECAUSE OF THIS MASSIVE SHIFT FROM DC WE FOCUS VERY HEAVILY ON STATE AND LOCAL PUBLIC FINANCING.
SO TWO OF OUR, UH, ADVISORS FOR THIS WORKING GROUP ARE HILLTOP SECURITIES AND OPPENHEIMER AND COMPANY.
THOSE ARE TWO OF THE FIVE LARGEST STATE AND LOCAL PUBLIC FINANCE FIRMS WHO DO A LOT OF WORK, NOT ONLY WITH THE CITY, THE COUNTY AND THE STATES, BUT ALL 50 STATES.
BUT THEY HAVE BEEN WORKING WITH US ON HOW TO CRAFT NEW WAYS OF, UH, FORMING, UH, CAPITAL INSTRUMENTS.
THE SECOND PART I WANT TO POINT OUT IS YOU SEE THIS IMPACT RATE OF RETURN, ALRIGHT? SO WE'VE PARTNERED WITH HOWARD BUFFET JR.
HOWARD STARTED WORKING ON THIS ABOUT 10 YEARS AGO.
ESSENTIALLY, UM, WE LOOK AT A TRADITIONAL RATE OF RETURN.
WE LOOK AT THE TRADITIONAL, BUT A NEW FORM OF COST BENEFIT ANALYSIS.
LIKE IF YOU DO THIS, WE'LL GENERATE THAT, RIGHT? BUT WHAT WE'VE ALSO LOOKED AT IS AN IMPACT RATE OF RETURN.
AT ONE POINT A FEW YEARS AGO, HOUSTON STILL HAD CLOSE TO 3000, 4,000 HOMES WITH BLUE TARPS ON 'EM.
STILL, WE HAVE HOMES WITH BLUE TARPS ON 'EM.
ALRIGHT? YOU AND I CAN GO FIX THE HOMES, WE CAN PUT THE, THE ROOFS ON.
ALRIGHT? AND SUDDENLY WE HAVE A QUOTE UNQUOTE LIVABLE HOME.
WE HAVE SOMETHING THAT STILL IS ON THE TAX ROLLS.
WHAT WE WANT TO KNOW IS, HAVE WE REDUCED THE HEALTHCARE COST BECAUSE WE'VE REMOVED MOLD AND OTHER CONSEQUENCES? THOSE ARE ECONOMIC LINKS TO SOCIETAL BENEFITS.
ALRIGHT? WHAT WE ALSO WANT TO KNOW IS DO THESE INDIVIDUALS HAVE ACCESS TO HEALTHCARE BEFORE, DURING, AND AFTER AN EVENT? SO WE'VE LOOKED AT CAPITAL FROM MULTIPLE, UH, UH, APPROACHES HERE, BUT I WANTED YOU TO SEE THAT EACH OF THESE ITEMS ON HERE, WE HAVE BEEN WORKING WITH AND NOW WANT TO FIND A WAY, AND I'M CHAIRMAN TO IMPLEMENT SOME OF THIS HERE IN HOUSTON WITH AND FOR Y'ALL.
ALRIGHT, I'M GONNA KEEP ON GOING REAL QUICK.
UM, THIS IS VERY MUCH APPRECIATIVE OF THE TEXAS DEPARTMENT OF EMERGENCY MANAGEMENT, UH, HARRIS COUNTY OFFICE AND CITY OF HOUSTON, OFFICE OF EMERGENCY MANAGEMENT.
WE DO REALLY WELL WITH DAY OF EVENT AND WHAT, WHAT WE CALL
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THE, YOU KNOW, THE RESPONSE RECOVERY REBUILD, BUT THAT IS NO LONGER SUFFICIENT.IF THE CITY OF HOUSTON, HARRIS COUNTY AND THE STATE OF TEXAS CONTINUE TO ONLY FOCUS ON RECOVERY, RE RESPONSE, RECOVERY, REBUILD, WE ARE LEAVING MONEY ON THE TABLE THAT CAN HELP PEOPLE ACROSS THIS COMMUNITY ON WHAT WE CALL THE BLUE SKY DAYS.
I KNOW IT'S NOT A SURPRISE, BUT TRYING TO GET THIS PART OF IT IMPLEMENTED ACROSS THE COUNTRY HAS A LOT OF BARRIERS BECAUSE IT'S NOT SOMETHING THAT FOLKS ARE USED TO DOING.
SO COUPLE QUICK ITEMS AND THEN I REALLY WANT TO HAVE A CONVERSATION BACK AND FORTH.
UM, WE NOW HAVE CURATED, ORGANIZED OVER A HUNDRED BILLION DATA POINTS DOWN TO THE COUNTY.
THE CENSUS TRACK, THE ZIP CODE, AND THE PARCEL LEVEL.
NOT FOR INSURANCE PRICING PURPOSES, BUT FOR THE PURPOSES OF UNDERSTANDING WHAT'S HAPPENING WITH THE REAL ESTATE, WHAT'S HAPPENING WITH MORTGAGES, WHAT'S HAPPENING WITH EMPLOYMENT PATTERNS, WORKFORCE, UM, ALL THE WAY OVER TO PRIVATE ASSETS, LARGE SCALE PRIVATE ASSETS.
MADAM CHAIRMAN, WE LOOKED AT THREE MAJOR OIL AND GAS UPSTREAM, DOWNSTREAM, UH, COMPANIES WITH HEADQUARTERS AND OPERATIONS IN HOUSTON.
YOU KNOW, ALL THREE OF THEM BY NAME.
YOU ALL SEE 'EM IN THE NEWSPAPER OF THOSE THREE.
ONE OF 'EM, IT HAS THE HIGHEST RISK EXPOSURE OF ANY OF THE OIL AND GAS COMPANIES THAT WE'VE SEEN.
MEANING NOT JUST UP IN THE PERMIAN AND BASIN, UH, YOU KNOW, COUNCIL MEMBER ALCORN, BUT DOWN HERE ON THE STILL.
ALRIGHT? WHICH MEANS THAT WE KNOW THERE'S GONNA BE ANOTHER EVENT.
SOME OF THESE PLACES STILL HAVE NOT REALLY STRENGTHENED THEMSELVES.
WHY IS THAT IMPORTANT TO CITY HALL? IS BECAUSE THEY ARE PART OF THE TAX BASE AND EVERY TIME THEIR BUSINESS CONTINUITY IN SOME WAY OR FAILS, IT IMPACTS YOUR ABILITY TO COUNT ON THEM FOR THE TAX BASE OF THE CITY AND THE REGION.
ALRIGHT? LET'S JUST BE VERY CLEAR ABOUT THAT.
UM, SO WE'VE ORGANIZED A LOT OF DATA THAT GIVES US A DEEPER DIVE ON THE RISK PROFILE OF HOUSTON, OF THE ASSETS, RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND PUBLIC SECTOR ASSETS, WHICH IN THIS COMMUNITY SIT SIDE BY SIDE AND SOMETIMES WITHIN THE SAME REAL ESTATE, UH, UMBRELLA.
SO THAT DATA BEGAN TO GIVE US SOME INSIGHTS NOT TO TAKE AWAY FROM WHAT PUBLIC WORKS HAS DONE, UH, OFFICE OF EMERGENCY MANAGEMENT, FLOOD CONTROL, BUT THAT'S NOT ALL OF THE DATA SOURCES THAT ARE AVAILABLE TO MAKE DECISIONS ON AND TO MAKE PROPER FINANCIAL, ECONOMIC, AND FISCAL DECISIONS ON.
SO WHAT WE DECIDED IS THAT YES, WE'VE GOT A CRUNCH, A LOT OF INFORMATION TO REALLY GET THIS KIND OF PROFILE THAT SAYS, BY THE WAY, YOU DON'T NEED ME TELLING Y'ALL WHAT THAT HOUSTON'S AT RISK.
WHAT YOU NEED IS TO MAKE IT ACTIONABLE.
IF THIS SAYS THIS, WHAT DO WE DO ABOUT IT? THAT IS THE ENTIRE FOCUS OF WHAT WE CALL FUTURE PROOFING HOUSTON.
SO WORKING WITH GINSLER, WHICH JUST DOWN THE ROAD, MEANING THREE BLOCKS FROM HERE, GENSLER'S GLOBAL RESILIENCE INSTITUTE IS BASED HERE IN HOUSTON, ALRIGHT? AND WE'VE BEEN WORKING WITH GENSLER AND OTHERS TO BASICALLY SAY WE CAN DESIGN, UM, IN RETROFIT NEW TYPES OF LAND USE IN HOUSTON ACROSS THE COUNTRY, AROUND THESE DIFFERENT TYPES OF DISASTER VULNERABILITIES.
BUT FRANKLY, IF WE'RE NOT INCORPORATING THESE SOCIAL VULNERABILITIES, WE WILL HAVE MISSED AN OPPORTUNITY TO RESOLVE WHAT WE BELIEVE IS RESILIENCE IS REAL PURPOSES, AND THAT IS THRIVING VERSUS JUST SURVIVING CITIZENS.
WHAT FEMA AND A BUNCH OF US HAVE BEEN WORKING WITH FEMA AND HUD AND SBA AND OTHERS, IS WE FIND WAYS TO DELIVER ENOUGH MONEY TO GET YOU BACK ON YOUR FEET.
WHAT WE HAVE NOT DONE IS MOVED YOU FROM JUST SURVIVING TO THE NEXT EVENT, TO NOW BECOMING A THRIVING MEMBER OF THE ECONOMY, THE COMMUNITY
[00:30:01]
NEXT.UM, I KNOW, AND I'M CAUTIOUS TO SAY THIS, UM, I KNOW THAT THERE'S A LOT OF REEXAMINATION OF TURS AND MUDS AND ALL OF THESE DIFFERENT, BUT GUESS WHAT? THOSE NOW ARE BEING HEAVILY ADOPTED ACROSS THE COUNTRY AS RESILIENCE DISTRICTS AND RESILIENCE HUBS.
WE JUST PUBLISHED IT THIS MORNING, UH, ON A NATIONAL BASIS.
HOW DO YOU LEVERAGE RESILIENT ZONES THAT ARE DESIGNATED SPECIAL PURPOSE DISTRICTS TO ULTIMATELY NOT JUST LEVERAGE PUBLIC SECTOR FINANCING, BUT TO ATTRACT INSURANCE, REINSURANCE AND PRIVATE SECTOR CAPITAL TO THE TABLE? IF CALIFORNIA CAN ADOPT WHAT'S CALLED THE ENHANCED INFRASTRUCTURE FINANCING DISTRICTS, AND NOW ARE REFERRED TO ON THE WILDFIRE, WHICH WE'RE WORKING ON, UM, A SOLUTION IN LA AROUND A DISASTER RESILIENCE DISTRICT, WHICH IS A TAX INCREMENT DISTRICT, BUT IT HAS VERY SPECIFIC AND LIMITED USE OF THOSE FUNDS.
SO WE LOOKED AT HOW TO DO MORE SPECIAL PURPOSE RESILIENCE TYPES OF INFRASTRUCTURE.
AND I KNOW SOME OF YOU HAVE HEARD, AND COUNCIL MEMBER ALCORN'S PROBABLY HEARD THIS FROM ME MORE THAN ENOUGH.
WE HAVE 6,700 DETENTION PONDS IN HARRIS COUNTY, 6,700, ONLY 30% OF THOSE PONDS ARE OWNED AND OPERATED BY A PUBLIC ENTITY.
MEANING THE MAJORITY OF THOSE DETENTION RETENTION PONDS ARE OWNED AND OPERATED BY A PRIVATE SECTOR ENTITY.
ONCE WE PERMIT THEM, WE DO NOTHING TO BRING THEM INTO A MEANS OF, UH, LIMITING THE IMPACT OF A 50 YEAR, A HUNDRED YEAR, A 500 YEAR FLOOD.
UM, WE FELT VERY EARLY ON THAT SOME OF THE LAND THAT THE CITY, THE COUNTY OWNS COULD BE USED FOR MICROGRIDS, RIGHT? TO CREATE UNINTERRUPTIBLE SUPPLIES OF POWER.
I KNOW YOU ALL MADE A, UM, A GREAT, UH, STEP FORWARD, UH, WITH COUNCIL MEMBER, UH, PLUMMER AND OTHERS ON LOOKING AT THE RESILIENCE HUBS THROUGH AKER'S HOME ON DEPLOYING, UM, UH, UH, GR YOU KNOW, UH, UH, A FORM OF A GRID.
BUT WE THINK THERE'S MORE RESOURCES TO GO BEHIND THAT.
SO WHEN WE ANNOUNCED A CO ABOUT A YEAR OR SO AGO, A PARTNERSHIP WITH THE SBA, AND MOST OF Y'ALL EITHER KNOW BY NAME OR KNOW OF FRANCISCO SANCHEZ, WHO WAS WITH HARRIS COUNTY, THEN WENT TO THE SBA AND WE WERE JUST WITH HIM A COUPLE WEEKS AGO AT THIS RESILIENT CITIES EXPO DOWN THE STREET HERE.
I, I DON'T THINK A LOT OF PEOPLE REALIZE THAT THE SBA 70% OF SBAS DISASTER LOANS GO TO WHOM? ANYBODY, RESIDENTS, RIGHT? RIGHT.
YES, THEY'RE SMALL BUSINESS PROGRAMS, ALRIGHT.
BUT SBA HAS HAD A PROGRAM FOR REBUILDING HOMES.
UM, THERE IS UNDER HIS LEADERSHIP THEN IT CONTINUES WITH A NUMBER OF FOLKS IS HOW DO YOU USE THE SBA DOLLARS TO ACTUALLY RETROFIT A HOME BEFORE THE NEXT EVENT, RIGHT? A NEW ROOF, NEW NEW FORTIFICATION.
SO WE STARTED LOOKING AT THAT, THE BEST PLACE IN THIS TOWN TO REALLY MOVE FORWARD OFF OF WHAT'S BEEN DONE.
BUT TO TAKE IT TO THE NEXT LEVEL IS NOT ON INDIVIDUAL HOMES, NOT ON STREETS, BUT ON PORTFOLIOS OF HOMES.
AND I'LL DESCRIBE WHY INSURANCE IS WHAT YOU AND I BUY FOR OUR HOMES OR OUR ASSETS.
WHAT SITS BEHIND THE INSURER IS REINSURANCE.
THAT'S THE INSURANCE FOR THE INSURANCE COMPANIES.
SO IF I HAVE A HUNDRED MILLION DOLLAR, UH, SET OF POLICIES FOR, FOR A DISASTER, BUT THE DISASTER ENDS UP COSTING CLAIMS OF ABOUT 150 MILLION, THE REINSURANCE PICKS UP THAT 50 MILLION.
WHAT WE NOW KNOW IS THAT THE REINSURANCE SECTOR HAS THE GREATEST IMPACT ON TRANSFORMING WHAT'S HA WHAT NEEDS TO HAPPEN IN THE COUNTRY.
UM, SPEAKING BOLDLY, STATE FARM DID NOT STOP WRITING POLICIES IN CALIFORNIA JUST BECAUSE STATE FARM WOKE UP ONE DAY AND SAID, WE'RE NOT DOING IT.
IT'S BECAUSE THE REINSURERS BEHIND THEM SAID, WAIT A MINUTE, YOU CAN'T KEEP ON COMING BACK TO US.
YOU KNOW, LIKE, LIKE THIS IS AN OPEN REGISTRY, RIGHT? SO WHAT WE'VE LOOKED
[00:35:01]
AT IS HOW DO WE REALLY TRULY LOOK AT PORTFOLIOS OF HOMES IN NEIGHBORHOODS SO THAT REINSURANCE ISN'T LOOKING AT GOING, OKAY, YOU'VE DONE SOMETHING.SHE HASN'T, SHE HASN'T, HE'S DONE SOMETHING.
BECAUSE LITERALLY WHETHER YOUR HOME IS FORTIFIED AGAINST A FIRE OR, YOU KNOW, A FLOOD OR WHATEVER IS GREAT.
BUT IF THE WHOLE OF THE NEIGHBORHOOD, THE WHOLE OF THE, THE AREA IS NOT MADE MORE RESILIENT, WHICH GETS TO SOMETHING THAT I THINK I MAY HAVE MISSED, BUT I HAVE NOT SEEN HARRIS COUNTY FLOOD CONTROL DISTRICT REPORT ON WHAT IS THE CONSEQUENCES TO INSURANCE AND REINSURANCE AND TO THE RISK EXPOSURE ECONOMICALLY ON THE WORK THAT'S BEEN DONE SO FAR.
THAT'S NOT A, NOT A CRITICISM.
IT'S WE'VE GOT TO LOOK AT THIS INFORMATION AND WHAT WE'RE DOING IN A WHOLE DIFFERENT WAY.
THE OTHER PART ABOUT THIS APPROACH IS IF WE'RE GOING TO GO IN, I DON'T CARE IF IT TAKERS HOME, I DON'T CARE IF IT'S OVER, YOU KNOW, HERE IN, YOU KNOW, THE FIFTH WARD OR WHEREVER, IS WE'VE GOT TO FIND WAYS TO MAKE SURE THAT THESE HOMES ARE NOT ONLY FORTIFIED, BUT WE ALSO ARE BRINGING IN HEALTH AND WELLBEING, FOOD AND NUTRITION, UH, ENERGY, ALL OF THESE PIECES ALL TOGETHER.
WHY, WHY, WHY DO WE NEED TO DO IT? BECAUSE THOSE ARE OUR EMPLOYEES.
THOSE ARE OUR SMALL BUSINESSES.
THOSE ARE A PART OF THE ECONOMIC FABRIC OF OUR COMMUNITIES, AND WE NEED TO FIND WAYS TO MAKE THEM PART OF THE THRIVING VERSUS JUST SURVIVING.
MADAM CHAIRWOMAN, CAPITAL IS NOT THE ISSUE.
IT'S HOW TO STRUCTURE SOLVING THESE PROBLEMS. I KNOW THE STATE OF WHAT THE CITY IS IN ALMOST EVERY MAJOR METROPOLITAN CITY ACROSS THE UNITED STATES IS IN SOME FORM OF A, OF A FISCAL, UH, YOU KNOW, TRANSFORMATION WOULD BE A POLITE WAY OF SAYING IT.
WE BELIEVE THAT THERE ARE CAPITAL SOURCES THAT COME TO PLAY SIDE BY SIDE, BUT DO NOT HAVE TO SOLELY GO THROUGH THE CITY.
THAT CAN BE THE STRATEGIC PARTNER IN.
WHAT WE'VE GOTTA FIND ARE WAYS TO UNLEASH THAT CAPITAL AND THE WAY TO UNLEASH THOSE, CAP THAT CAPITAL IS TO TAKE A LOOK AT THESE NEW STRUCTURES LIKE RESILIENCE DISTRICTS THAT ARE MORE THAN JUST, CAN WE PUT A GENERATOR? HERE IT IS.
WHAT CAN WE DO TO CREATE A NEW ECONOMIC FINANCIAL INVESTMENT STRUCTURE? SO WHAT WE'VE SAID TO FOLKS AROUND THE COUNTRY IS WE THINK THAT THE PUBLIC SECTOR IN 2026, ESPECIALLY WITH WHAT GOT ANNOUNCED TODAY, HAS TWO OPPORTUNITIES.
ONE IS TO UNLOCK INVESTMENT CAPITAL AND INCREASE THE INSURABILITY OF THE ASSETS.
ARE Y'ALL AFRAID?
AND, AND CERTAINLY, UM, YOU KNOW, IT SPOT ON CAPITAL IS NOT THE CHALLENGE, RIGHT? UM, YOU KNOW, AND, AND YOU BROUGHT UP A POINT ABOUT THE, UH, RETENTION PONDS.
IT'S LIKE HAVING A BUCKET OF WATER OVER HERE AND THEN ONE OVER THERE.
AND HOW DID, HOW DO WE TIE THAT TOGETHER, RIGHT? THERE'S SO MANY, THIS, THE BIG PICTURE IS, IS, UH, A LITTLE BIT SCARY.
UM, WE DO HAVE A, A COUNCIL MEMBER.
UM, YOU'VE BEEN SINGING THIS SONG A WHILE AND HOPEFULLY THE TUNE GETS BETTER.
WHAT ARE THE PRACTICAL STEPS WE CAN TAKE AS A MUNICIPALITY TO UNLOCK THAT CAPITAL? SO I THINK THERE'S, THERE'S A COUPLE OF THINGS.
ONE IS, I GO BACK TO THIS, THAT UNDERSTANDING HOW ALL THE DIFFERENT DEPARTMENTS PLAY A TRUE ROLE IN CONTRIBUTING TO A HIGHER VALUE OF RESILIENCE.
ALRIGHT? SO LIKE, NOT GONNA SPEAK OUTTA TURN, BUT YOU KNOW, WHEN I'VE TALKED WITH TOM, JASON, AND SOME OF THE THINGS ABOUT WHAT METRO DOES MM-HMM
ALRIGHT? AND YOU'VE HEARD ME SAY THIS, UH, AGAIN, I'LL GIVE A COUPLE OF PRACTICAL PIECES.
UM, THESE METRO BUSES COLLECT A LOT OF DATA MM-HMM
THEY ACTUALLY KNOW WHERE THINGS ARE BEFORE PUBLIC WORKS DOES EVEN BEFORE OFFICES OF EMERGENCY MANAGEMENT DO.
ALRIGHT? SO ONE IS, I BELIEVE WE HAVE GOT TO ONCE AND FOR ALL SERIOUSLY CREATE
[00:40:01]
A JUST IN TIME DATA CURATION WITH PUBLIC AND PRIVATE SECTOR CAPABILITIES, INCLUDING, UH, COUNCIL MEMBER ALCORN, A WAY TO USE THE DATA TO DRIVE ACTION THAT SAYS, IF I KNOW THAT I HAVE THIS CONDITION HERE AND I PUT AN INVESTMENT WHO BENEFITS FROM THAT INVESTMENT? AND IT'S NOT JUST THE GOVERNMENT, IT IMPACTS BRINGING INSURANCE, REINSURANCE, MORTGAGE, OTHER CAPITAL TO THE TABLE.THE SECOND PART IS THERE NEEDS TO BE THESE KINDS OF INVESTMENT STRUCTURES, THESE INVESTMENT, UM, INSTRUMENTS.
UM, I FEAR THAT SOME OF THEM ARE UNDER ATTACK FOR KIND OF THE WRONG REASONS.
OKAY? UM, BUT IF WE WANT TO CALL 'EM RESILIENCE ZONES OR RESILIENCE DISTRICTS, THE, THE CAPITAL STRUCTURES EXIST.
WHAT DOESN'T EXIST IS ALIGNING THE SOURCES OF CAPITAL TO, IN A SENSE, HELP BUY DOWN THE COST WITH A DEVELOPER FOR INVESTING, DOING SOMETHING DIFFERENT, HELPING HOMEOWNERS GET ACCESS TO CAPITAL.
SO ONE OF THE STRUCTURES THAT WE ARE ROLLING OUT IS A COMMUNITY MUTUAL RISK POOL, BECAUSE NO ONE IN HARRIS COUNTY, THE CITY OF HOUSTON, I DON'T CARE, HEDWIG VILLAGE, YOU NAME IT, CAN AFFORD TO COVER ALL OF THE RISK.
SO WE ARE LOOKING AT HOW THESE COMMUNITY MUTUAL RISK POOLS COME TOGETHER THAT BRING REINSURANCE CAPITAL FROM DIFFERENT SOURCES ALONG WITH PUBLIC SECTOR CAPITAL AND SHARE THE BURDEN OF THE RISK, BUT USE THE RESOURCES FROM THAT MUTUAL FUND, THAT MUTUAL POOL TO ACTUALLY INVEST IN DOING THINGS RIGHT NOW THAT REDUCE THE RISK EXPOSURE.
I GET WHAT YOU'RE SAYING, BUT, UH, WHAT, WHAT DO WE TELL PUBLIC WORKS GO DO SOMETHING.
WHAT, WHAT DO WE, WHAT DO WE DO? SO WHAT DO WE DO NOT LIKE GO GET DATA FROM METRO? WHAT, LIKE WHAT DO WE DO TO UNLOCK THIS CAPITAL? WHAT, HOW DO WE GET THE MONEY? LIKE IF WE'RE GONNA GO DO A BIG DRAINAGE PROJECT, OR WE'RE GONNA DO SOME RESILIENCE PROJECT AND THERE'S ALL THIS PRIVATE MONEY OUT THERE THAT WOULD BENEFIT, YOU KNOW, BECAUSE INSURANCE IS GONNA GO DOWN AND THERE'S, YOU KNOW, ALL THESE INSURANCE COMPANIES THAT WANT, I MEAN, I WANT THEM TO HELP PAY FOR OUR PROJECT.
HOW DO WE GET, IS THAT, IS THAT THE IDEA? YES.
TO GET PUBLIC WORKS, TO JOIN FORCES AND GET FUNDING, NOT JUST FROM OUR STAND, OUR TRADITIONAL WAYS OF GETTING FUNDING FOR, FOR FLOOD MITIGATION, BUT TO SEEK OUT PRIVATE FUNDING.
I, I, PUBLIC, PUBLIC WORKS WILL NOT GET INSURANCE FUNDING OR THIRD PARTY CAPITAL OTHER THAN WHAT IT ALREADY HAS NOW.
UNLESS WE CAN CREATE A NEW KIND OF INSTRUMENT, A NEW TYPE OF, SO LIKE ONE OF THESE RESILIENCE HUB ZONES OR WHATEVER, A ZONE, A COMMUNITY MUTUAL RISK POOL.
ALRIGHT? SO THAT'S WHAT WE HAVE TO DO FIRST.
BECAUSE LOOK, THE, UM, FLOOD MITIGATION BY ITSELF IS NOT THE ONLY SOLUTION REQUIRED HERE.
ALRIGHT? BUT WHAT WE'VE LOOKED AT IS, UM, YOU KNOW, AGAIN, USE AN EXAMPLE, I'LL MAKE THIS AS QUICK AS I POSSIBLY CAN, BUT THAT'S KIND OF WHAT WE, BEFORE YOU GO ON, BUT THAT'S KIND OF WHAT WE DO.
WE DO PROJECTS, WE DO PROJECTS TO MAKE THE CITY MORE RESILIENT.
BUT DON'T DO OTHER, THEY'RE NOT PUBLIC PRIVATE, NOT STUFF MEAN.
WE HAVE A COMMUNITY, YOU KNOW, THAT WE HAVE THE COMMUNITY RATING AND ALL OF THAT.
WE WORK ON THAT AND WE PROMULGATE RULES HAVING TO DO WITH FLOODING.
BUT WE, OUR WAY OF BEING MORE RESILIENT IS THROUGH PROJECTS, THROUGH ACTUAL, YOU KNOW, BUILDING STUFF.
SO WHEN WE BUILD THAT AFFORDABLE HOUSING, ARE WE BRINGING THE AFFORDABLE HOUSING UP TO A HIGHER STANDARD OF RESILIENCE SO THAT THE ROOF DOESN'T BLOW OFF, THAT THE WINDOWS DON'T FOLD IN.
SO LOOKING, LOOKING MORE AT, AT THE STANDARDS TOO, TO MAKE THINGS MORE RESILIENT, HOW THE STANDARDS CAN BE APPLIED THAT IF DONE, AND WE'RE NOT EVEN ADVOCATING FOR A WHOLE SET OF BUILDING CODES.
WE'RE JUST SAYING THAT, THAT IN REALITY WE PRETTY MUCH KNOW WHAT HAS TO BE DONE MM-HMM
RIGHT? SO IT'S WHETHER GOING, IF WE WENT PROJECT BY PROJECT MM-HMM
WHETHER THE STREETS ARE BEING DONE IN A WAY THAT MAKE THE STREETS RESILIENT, RIGHT? THAT'S A PART OF IT.
BUT IT'S AS MUCH AS HELPING THE PRIVATE SECTOR WHO ARE THE BIGGEST PART OF THE INVESTMENTS OF THE INFRASTRUCTURE IN THIS TOWN.
AND HOW DO WE DO THAT? UM, I I BELIEVE VERY STRONGLY THAT YOU CREATE THESE KINDS
[00:45:01]
OF REAL ESTATE ENTITLEMENTS AND INCENTIVES THAT SAY IF YOU SPEND 20 TO 30% MORE ON MAKING YOUR REAL ESTATE PROJECT ACHIEVE A HIGHER STANDARD, WE COULD PROVIDE A CERTAIN TYPE OF TAX CREDIT OR A CERTAIN TYPE OF KINDA LIKE OUR GREEN INFRASTRUCTURE, UM, INCENTIVE PROGRAM.AND BASED ON, IN A SENSE, A PROPORTIONAL LINK TO THAT.
IF I DO THIS, WILL THE PUBLIC FINANCING, WILL THE INSURANCE, WILL THE REINSURANCE RIGHT.
ALIGN TO SAY I HAVE SPENT THIS AMOUNT OF MONEY MORE THAN I NEEDED TO, RIGHT? MM-HMM
AND IT'S NOT A CRITICISM OF THE REAL ESTATE COMMUNITY.
THEY DO THE BASELINE THAT THEY'VE GOT TO DO ANYTHING ABOVE THAT.
WE'VE GOT TO FIND A WAY TO ENCOURAGE AND INCENTIVIZE AND FRANKLY REWARD THEM FOR DOING THAT.
SO WHEN WE TALK ABOUT THESE MASTER PLAN COMMUNITIES, ESPECIALLY IN PLACES, I'M GONNA PICK ON SOMEBODY TODAY, I'LL GET IN TROUBLE FOR THIS.
WALLER COUNTY IS ONE OF THE FASTEST GROWING MASTER PLAN LOGISTICS DISTRIBUTION CENTERS.
ALRIGHT? THOSE PROJECTS ARE NOT BEING MADE RESILIENT.
WE'RE BUILDING A LOT OF LOCATIONS MM-HMM
FOR THE GROWTH OF THE COMMUNITY AND THE REGION AT LARGE.
WE'RE KICKING THE RESILIENCE DIVIDEND DOWN THE STREET.
SO THAT ALSO TIES INTO SOMETHING THAT SAYS, WE NOW HAVE THE EMPIRICAL DATA THAT SAYS, I COUNCIL MEMBER ALCORN IN, YOU KNOW, MY DISTRICT HAD THIS PROJECT, IF WE BUILD IT TO A HIGHER STANDARD, TO A HIGHER VALUE OF RESILIENCE, OR IF WE ENCOURAGE AND PARTNER WITH THE PRIVATE SECTOR TO BUILD OUT, UM, YOU KNOW, WHATEVER X IS, THEN THAT RESILIENCE DIVIDEND CAN BE SECURITIZED.
IT CAN BE FINANCED, AND IT'S NOT YOUR DOLLARS ALONE.
SO WHAT I WOULD SAY TO YOU, WHAT'S THE NUMBER ONE PIECE THAT I WOULD TAKE AWAY IS CAN WE ONCE AND FOR ALL ESTABLISH, I DON'T CARE IF IT'S WITH THE FINANCE DIRECTOR, WITH A GROUP OF Y'ALL, WITH A COUPLE OTHERS.
I THINK THAT HOUSTON IS RIPE FOR HAVING AN ENTIRE DISCUSSION ABOUT FINANCING, UM, THE MITIGATION OF RISK EXPOSURE WITH SOME NEW INSTRUMENTS AND NEW WAYS THAT DOESN'T PUT THE CITY FURTHER IN DEBT, BUT FRANKLY ATTRACTS OTHER FORMS OF CAPITAL.
IF I WERE TO ENCOURAGE ONE TAKEAWAY FROM TODAY, OKAY.
IS LET US ASSEMBLE A SET OF STAKEHOLDERS THAT ARE ALREADY INTERESTED ALRIGHT.
EVEN WHEN TO COMPETE AGAINST EACH OTHER FOR THE OPPORTUNITY.
BUT WHAT NEEDS TO HAPPEN IS, Y'ALL'S ROLE AS ELECTED AND APPOINTED OFFICIALS IS TO USE THE APPARATUS YOU'VE GOT.
PART OF IT IS ENTITLEMENTS, BUT PART OF IT IS ALSO BRINGING YOUR ASSETS TO THE TABLE IN A WAY THAT SAYS WE ALSO ARE GONNA RAISE THE VALUE OF OUR INFRASTRUCTURE SIDE BY SIDE.
SO, UM, THAT'S ONE ASPECT OF IT IS WE THINK THIS IS NOW TIME TO ADDRESS THE FINANCIAL, ECONOMIC AND FISCAL STRATEGY FOR RESILIENCE.
AND WHAT A GREAT TIME BECAUSE IT'S ALSO NOT INTENDED TO PUT THE CITY IN FURTHER DEBT, BUT TO FIND A WAY TO UNLOCK OTHER FORMS OF CAPITAL FOR THE PRIVATE SECTOR THEMSELVES TO USE TO DO PART OF THIS WORK.
WELL, YOU WERE SPEAKING TO THE RIGHT ONE.
'CAUSE COUNCIL MEMBER ALCOR, AS THE BUDGET AND FINANCE COMMITTEE CHAIR IS ALWAYS LOOKING FOR A WAY TO UNLOCK THOSE FINANCES AND RIGHT.
SO, UM, CAN I THROW ONE OTHER, I'M SORRY.
CAN WE THROW ONE OTHER PART? UM, SOMETHING.
SO THE, THE REINSURANCE SECTOR RIGHT NOW ON A GLOBAL BASIS HAS PROVEN OUT DIFFERENT USES OF WHAT THEY CALL INSURANCE AS ECONOMIC CAPITAL.
SO THERE'S TWO SIDES OF, SO TO SPEAK, THE INSURANCE HOUSE, UH, COUNCIL MEMBER ALCORN.
ONE IS, YOU KNOW, THE ACTUARIAL AND THE PREMIUMS. THE OTHER IS THE CAPITAL MARKET SIDE.
THAT'S PART OF WHAT WE'RE ALSO DESCRIBING AS ENLIGHTENED SELF-INTEREST.
THERE IS SIGNIFICANT AMOUNT OF MONEY ON THE CAPITAL MARKET SIDE TO BE INVESTED.
WHAT'S ENLIGHTENED SELF-INTEREST IS, IS THAT IF I USE PART OF THEIR CAPITAL WISELY, WE ARE IN A SENSE ON THE OTHER SIDE OF THEIR BOOKS REDUCING THEIR LOSS CLAIMS AND THEIR RISK EXPOSURE.
SO PART OF THIS IS TO GO BACK TO SOMETHING I PROMISE I'LL SHUT UP ON THIS NOTE, IS WHAT'S MISSING
[00:50:01]
IS THIS, UH, WHAT WHAT WE CALL FUTURE PROOFING STANDARD THAT SAYS IF I INCORPORATE DOING X, THEN THIS IS THE OFFSETTING FINANCIAL RESOURCES THAT COULD BE BROUGHT TO BEAR.AND IF WE WANT TO DO IT ON ONE PROJECT, THAT'S GREAT.
WHAT I WOULD SAY IS THAT WHY ARE COMMUNITIES AROUND THE COUNTRY REALIZING IT CAN'T BE DONE JUST ON ONE ASSET.
IT HAS TO BE DONE ON A PORTFOLIO OF ASSETS.
THAT'S WHERE WE THINK THE OPPORTUNITY IS.
WE HAVE, UH, ALSO TWO, UH, HAVE BEEN JOINED BY STAFF FROM COUNCIL MEMBER THOMAS'S OFFICE AND COUNCIL MEMBER, UH, STAFF FROM COUNCIL MEMBER RAMIREZ'S OFFICE.
HAVE A QUESTION IN THE QUEUE HERE.
YOU, UM, THANK YOU SO MUCH FOR THE PRESENTATION TODAY.
VERY INFORMATIVE AND I MEAN, I THINK IT'S BEEN SAID MANY TIMES, BUT RESILIENCE IS SUCH AN IMPORTANT TOPIC AND REALLY GLAD THAT YOU WERE ABLE TO COME IN AND PROVIDE SOME INFORMATION.
UM, I WAS WONDERING IF YOU COULD SPEAK MORE TO THESE POOLS OF FUNDS THAT YOU SPOKE ABOUT.
I BELIEVE IT'S ON SLIDE 26 IN THIS VERSION, UM, WHERE YOU SPOKE ABOUT THE, THE RCET, NATIONAL AND OR REGIONAL TRUSTS.
OR ARE THOSE, IS THAT A SEPARATE ITEM? NO, NO.
OH, I DON'T KNOW IF WE ACTUALLY GOT TO IT IN THIS.
YEAH, KEEP ON, KEEP ON GOING LATER IN THIS NO, GO BACK.
IS THAT THE TRUST THAT YOU WERE SPEAKING ABOUT WHERE YOU'RE ENVISIONING BEING ABLE TO LEVERAGE THIS FUNDING FOR RESILIENCE PROJECTS ON THE BLUE SKY DAYS? OR ARE THESE TRUSTS ONES THAT YOU'RE, THIS IS ANOTHER INSTRUMENT THAT, AND, AND I, YEAH.
I KIND OF THOUGHT I WAS LOSING Y'ALL, BUT
UM, HOUSTON IS ALWAYS AN EXEMPLAR.
EVERY PLACE I GO AROUND, UH, THE UNITED STATES IN THE WORLD, WE ARE A VERY CHARITABLE CITY.
UM, SO PART OF THIS, UM, IS EASY TO TALK ABOUT HERE, BUT EVERY TIME THERE'S A DISASTER, WE TURN TO THE COMMUNITY FOUNDATION TO OTHERS.
AND FORTUNATE AND BLESSED THAT 30 MILLION, $60 MILLION CAN SHOW UP PRETTY QUICKLY IN THIS CITY.
WE'RE FORTUNATE THAT'S NOT GONNA ALWAYS BE THE CASE.
SO WE STARTED LOOKING AT HOW A NONPROFIT TRUST COULD BE FORMED FOR CORPORATE PHILANTHROPY FOUNDATIONS AND DONOR ADVISED FUNDERS.
NOT JUST, YOU KNOW, IN HOUSTON, BUT IF SOMEBODY WANTED TO PUT MONEY TO WORK.
AND LET ME USE AN EXAMPLE OF SOMETHING.
UM, I'M GONNA GO REAL QUICK ON THIS.
YOU KNOW WHAT TIA IS, RIGHT? SO WE, 10 PLUS 15 YEARS AGO, WE HAD A MAJOR WINDSTORM IN THE STATE OF TEXAS, AND ESPECIALLY ON THE GULF COAST.
AND THE INSURANCE INDUSTRY PRETTY MUCH SAID, WE CAN'T KEEP ON DOING THIS.
SO THE STATE OF TEXAS WITH THE LEGISLATURE CREATED ITS OWN INSURANCE PROGRAM FOR WIND.
UM, MADAM CHAIRMAN, I'M, I'M GONNA TAKE A LIBERTY HERE.
SO YOU BLAME ME FOR THIS STATEMENT, NOT YOU.
TIA STILL CHARGES EVERYBODY ACROSS THE STATE TO PAY FOR THE, UH, UH, CREATION OF THIS WIND INSURANCE.
IT CAN ONLY BE USED ON THE COASTAL COMMUNITIES, WHICH IS GREAT.
UH, HOWEVER, THE MOST DAMAGE OF WIND THAT'S OCCURRED IN THE STATE OF TEXAS IN THE PAST FIVE YEARS HAS OCCURRED IN NORTH TEXAS IN THE PANHANDLE.
HOWEVER, ONE SLIGHT CHANGE THAT'S NOW AVAILABLE IN TIA DOES ALLOW SOME OF THOSE DOLLARS TO BE USED FOR FORTIFIED ROOFS BASED ON THE INSTITUTE FOR BUSINESS AND HOME SAFETY CODE BUILDING CODE.
ONE OF THE THINGS THAT WE'VE LOOKED AT IS HOW DO EMPLOYERS WITH LOW TO MODERATE INCOME EMPLOYEES CONTRIBUTE A CERTAIN AMOUNT OF DOLLARS INTO A VOUCHER PROGRAM FOR THEIR HOMES TO RECEIVE A FORTIFIED ROOF, MEANING A RETROFIT, THAT'S HOW YOU CAN USE A TRUST, IS TO HAVE DESIGNATED DOLLARS GO NOT JUST FOR CLOTHES AND FOOD, WHICH WE STILL BELIEVE IS IMPORTANT.
WHAT WE BELIEVE THE TRUST COULD BE USED FOR IS THIS PRE-DISASTER RISK MITIGATION BEFORE,
[00:55:02]
INCLUDING THE, WHAT WE SUGGESTED WAY BACK WAS THAT YOU COULD USE THE TRUST FOR GENERATORS MICROGRIDS, NOT JUST AT THE RES, NOT JUST AT AKER HOME.WE FELT AND STILL DO BELIEVE THAT YOU COULD GET 300 TO 500 HOMES, UM, FAITH-BASED FACILITIES AND OTHERS IN THE NEIGHBORHOODS CONNECTED INTO A DISTRIBUTED ENERGY GRID, BUT USE THE TRUST AS A 5 0 1 C3 INVESTMENT VEHICLE.
SO THESE TRUSTS, IT'S PRIMARILY FOR BLUE SKY DAYS, SOLELY FOR BLUE SKY.
WHAT DOES IT LOOK LIKE AFTER A DISASTER? THAT IS NOT WHAT THIS IS FOR.
WE, WE WANT TO ENCOURAGE IT FOR THE BLUE SKY DAYS BECAUSE THAT'S WHERE THE INVESTMENTS TEND TO WHERE, WHERE MONEY TENDS TO NOT SHOW UP.
UNITED WAY, AMERICAN RED CROSS AND OTHERS ARE NOW MOVING THEIR STRATEGIES TO BLUE SKY AS MUCH AS THE TRADITIONAL RESPONSE AND RECOVERY.
SO WE'RE NOT TAKING RESPONSE AND RECOVERY OFF THE EQUATION WITH A TRUST.
BUT WHAT WE ARE SAYING IS IF WE LEAN INTO MORE PRE-DISASTER BLUE SKY, IT DOES SHOW IT.
I MEAN, IT'S PROVEN EVIDENCE THAT WHAT I HAVE TO SPEND MONEY IS MORE EFFICIENT AND EFFECTIVE IF I DO THINGS UP BEFORE THE NEXT EVENT.
AND THE TRUST IS A WAY TO DO THAT.
UM, MAY I ASK ONE MORE QUESTION? OKAY.
UM, I KNOW WE HAVE SEVERAL OFFICES WITHIN CITY OF HOUSTON THAT ARE ALSO FOCUSED ON THIS, INCLUDING THE MAYOR'S OFFICE OF RESILIENCE.
HAVE YOU WORKED OR PARTNERED WITH THEM AT ALL? OR, OR MET WITH THEM TO SPEAK ABOUT THIS IN, IN THE PAST? YES.
I I I I'M GONNA EMPHASIZE SOMETHING AND THAT IS THAT, UM, WE BELIEVE THIS IS MUCH A WAY OF BRINGING THE PRIVATE SECTOR TO THE TABLE.
THAT THIS IS NOT JUST A GOVERNMENT ENTITY, NOR IS IT JUST AN INSURANCE SOLUTION.
THAT'S WHAT WE'RE TRYING TO SAY IS WE'RE SEEING EVIDENCE AND EXAMPLES OF INITIATIVES AND VERY SPECIFIC SOLUTIONS AND STRUCTURES THAT SAY, HERE'S THE ROLE OF GOVERNMENT, BUT FRANKLY, HERE ARE ALL THE OTHER, WHAT WE CALL ENLIGHTENED SELF-INTEREST STAKEHOLDERS.
SO IT, IT, IT IS NOT ONE JUST DRIVEN BY THE OFFICE OF EMERGENCY MANAGEMENT.
IT'S AS MUCH SITTING DOWN WITH EMPLOYERS, INVESTORS, INSURANCE, AND REINSURANCE.
THAT'S WHERE WE, YOU KNOW, AND YOU, YOU RIGHTLY, AND, AND I GRACIOUSLY SAY, YOU ALWAYS PUSH ME TO GET TO THE VERY SPECIFIC OKAY.
THE VERY SPECIFIC THAT HAS TO BE IS WE NEED A NEW RESILIENCE, FINANCIAL INVESTMENT INSTRUMENT FOR THE CITY OF HOUSTON.
BUT IT DOES NOT NEED, NEED TO BE SOLELY BORN BY THE CITY'S BUDGET OR OWNERSHIP SOLELY.
SO WE'VE GOT SOME, UM, LANGUAGE, WE'VE GOT SOME STRUCTURES FOR Y'ALL TO TAKE A LOOK AT.
I DECIDED NOT TO DO THIS TODAY, BUT WE HAVE VERY SPECIFIC STRUCTURES THAT HAVE ALREADY BEEN PROVEN OUT IN DIFFERENT PLACES IN THE UNITED STATES.
WE THINK THAT THERE ARE ONES THAT NEED TO BE AND CAN BE ADAPTED FOR HERE.
AND WE KNOW WHO SOME OF THOSE INVESTORS ARE THAT WOULD BE INTERESTED IN SITTING DOWN AND, AND LOOKING AT HOW TO STRUCTURE THESE.
BUT WE ALSO LOOK AT THIS AS A MUTUAL RISK POOL TIED WITH TRUST, MEANING THAT THERE ARE MULTIPLE WAYS FOR CAPITAL TO BE DEPLOYED, BUT NOT ON THE DAY AFTER THE EVENT, BUT ON THE BLUE SKY DAYS, ESPECIALLY COUNCIL MEMBER ALCORN.
SO, CHAIR, IS THAT THE, IS THAT THE KIND OF NEXT STEP FOR THIS IS TO TRY TO GET, UM, THIS GROUP WITH THE, WITH OUR FINANCIAL PEOPLE AND PUBLIC WORKS PEOPLE? THAT'S EXACTLY I THE LENGTHY PRESENTATION, WHICH I'M NOT SURE THAT WE ACTUALLY SENT OUT TO ALL OF COUNCIL, BUT THERE'S A, UH, THE MAYOR'S OFFICE HAS IT MM-HMM
I THOUGHT I HAVE A BIGGER ONE.
BUT ANYWAY, BUT TO, TO, UH, REALLY TRY TO CONNECT WITH THE, WITH THE MAYOR'S TEAM AND SEE HOW WE KIND OF DISPERSE, UM, THE DISCUSSIONS.
AND REALLY START THE BALL ROLLING.
[01:00:01]
OKAY.UM, BECAUSE I THINK, OBVIOUSLY, RICHARD, I MEAN YOU'RE, I, YOU COULD TALK ABOUT THIS ALL DAY.
CLEARLY, YOU, IT, YOU KNOW, YOU'VE GOT THE WORK THAT YOU PUT INTO IT, BUT YOU KNOW, IT'S THAT GOLDEN EGG THAT WE'RE, THAT WE'RE LOOKING FOR.
AND SO, UH, YOU KNOW, CERTAINLY I'M COMMITTED TO, TO HELPING TRY TO GET, YOU KNOW, PUSH FORWARD AND SEE IF THAT PLAN THAT YOU, SO, UH, YOU KNOW, THAT YOU HAVE LAID OUT IS SOMETHING THAT, THAT OUR COMMITMENT TO YOU IS THE SAME THING THAT I SAID THIS MORNING ON A A, A CALL TO ANOTHER LARGE STATE.
PEOPLE THAT WE'RE WORKING WITH ARE SO READY TO JUST GET GOING, TO FIND THE RIGHT PILOT COMMU, YOU KNOW, HOWEVER YOU WANT TO CALL IT PROJECT.
THAT, THAT'S THE REASON WHY WE BELIEVE 2026 IS THIS SEMINAL YEAR.
WE DON'T WANT TO DO ANOTHER STUDY.
THERE'S SOME DATA THAT NEEDS, BUT WE DON'T WANNA DO ANOTHER STUDY.
WE WANT TO PUT SOMETHING TOGETHER THAT YOU'RE COMFORTABLE WITH THAT WILL SHOW IMMEDIATE AND, YOU KNOW, LONGER TERM RESULTS.
BUT ONE THAT ONE MORE TIME OPENS THE DOOR TO NOT JUST RELIANT ON THE CITY, THE COUNTY OR GOVERNMENT FOR BEING THE ONLY SOURCE OF THE DOLLARS.
OUR COMMITMENT IS TO BRING PEOPLE TO THE TABLE FOR THIS DISCUSSION TO REALLY DESIGN SOMETHING THAT CAN BE PURPOSELY DONE AND IN SCALED.
THAT'S, THAT'S MY COMMITMENT TO YOU.
WELL, THANK YOU FOR YOUR WORK AND YOUR EFFORTS AND CERTAINLY, UH, WE'LL CONTINUE, UM, TO FOLLOW UP.
WE DO HAVE A COUPLE OF, UH, SPEAKERS THAT HAD SIGNED UP FOR QUESTIONS.
SO, UM, WE'LL CALL THEM UP AND THANK YOU FOR YOUR WONDERFUL PRESENTATION.
WELL, THANK YOU FOR YOUR TIME.
THANK YOU FOR YOUR, YOUR PATIENCE WITH ME.
WE'RE GONNA DO THIS IN HOUSTON FIRST AND FOREMOST, BUT THANK YOU.
AT THE, UH, TIME OF THE MEETING, WE HAD MCKAY MORENO ISH, MS. MORENO, AND I DON'T SEE DOMINIQUE MAZO.
DO WE HAVE ANY OTHER SPEAKERS THAT WANTED TO SPEAK THAT HAD NOT SIGNED UP OR HAVE SIGNED UP? THAT'S RICHARD.
THAT'S, I HAVE LISTENED TO RICHARD.
UM, SO WE'VE DONE A COUPLE OF THINGS THAT, THAT RICHARD DIDN'T, UH, MENTION.
ONE, WE PASSED THE 2021, UM, UH, BUILDING INTERNATIONAL BUILDING CODES.
MR. CASTILLO HAS SET UP, UH, HIS, UM, A RESILIENCY PLAN IN, IN, UM, IN AGE WHERE HE'S NOW TRYING TO DO, UH, TREES AND, UM, UM, RENOVATION AND, UH, TO WEATHERIZE HOMES.
AND ONE OF THE THINGS THAT WE'VE BEEN STRESSING THROUGH MY ORGANIZATIONS, UM, IS TRYING TO DO WEATHERIZED HOMES BETTER.
YOU KNOW, SEER AND HARK ARE, ARE WORKING ON A PROGRAM RIGHT NOW.
SO IF, IF WE CAN GET THESE KINDS OF TRUST TO HELP US TRY TO GET THOSE WEATHERIZED HOMES AND SOLVE THE, THIS, THIS, UM, NEED, UH, I, I COMMEND HIM FOR HIM.
I, I REALLY WANT THAT TO MOVE FORWARD BECAUSE WE'VE BEEN, WE'VE, WE STILL HAVE, UH, PEOPLE WITH BLUE TARPS FROM, UM, H HURRICANE A AND, AND, UH, AND SO I I, I STILL THINK THAT, YOU KNOW, WE ARE NOT DOING ENOUGH, UH, ON THAT PART.
AND I THINK THAT THAT WOULD HELP, UM, DO THAT.
AND ONE OF THE THINGS, UH, THAT I, I SUGGESTED THAT TO COUNCILMAN CASTILLO IS WORKING WITH, UH, FAITH-BASED GROUPS TO GRAB THE, THE PORTFOLIO OF, OF HOUSES THAT NEED THE WORK.
AND BECAUSE WE'VE TRIED THIS BEFORE AND THE PROBLEM HAS BEEN THE CITY'S NOT AS GOOD AT PROJECT MANAGEMENT.
AND SO IF WE CAN HAVE THE, THE BLOCK OF, OF HOMES, 15 HOMES THAT WE CAN DO IN A WEEK AND OUR, OUR, OUR WEATHERIZATION TEAMS CAN GO AND DO THESE THINGS IN A ROW, THAT'S HOW, HOW WE SOLVE THE PROBLEM.
AND, YOU KNOW, RICH RICHARD IS HAS GOT A, A NE A A A NEW WAY OF DOING IT.
AND THANK YOU FOR BEING HERE, MR. EZ.
YOU KNOW, UM, I'LL GET WITH YOU AFTER THE MEETING.
I'M GONNA ASK YOU ABOUT A, A COUPLE OF ORGANIZATIONS AND MAYBE WE COULD MAKE SOME CONNECTIONS TOO.
OUR NEXT SPEAKER IS, UH, JOE DUNHAM.
AND THAT WAS A GREAT PRESENTATION,
[01:05:01]
VERY DETAILED.I DON'T KNOW IF THERE'S A WAY WE CAN SEE THE, THE LARGE PRESENTATION OR NOT.
UM, BUT ONE, I HAD A QUESTION OF SOMETHING AND THEN WANTED TO MAKE A COUPLE COMMENTS, BUT YOU WERE TALKING ABOUT A RESILIENCE DISTRICT VERSUS A MUD DISTRICT.
CAN, CAN YOU GIVE A LITTLE BIT MORE DETAIL ABOUT THAT? I KNOW RIGHT NOW, UM, STATEWIDE, UM, I, MY NAME IS JOE DUNHAM.
I'M A, A ACTIVE MEMBER OF GREATER HOUSTON BUILDERS ASSOCIATION.
AND, AND I, I WAS OVERHEARING, I SAID, HEY, I CAN GO.
I'M NOT HEARING IN ANY OFFICIAL CAPACITY AT ALL.
UM, BUT I KNOW, UM, 'CAUSE I AM ON THE GOVERNMENT AFFAIRS, UM, COMMITTEE, AND I KNOW THAT RIGHT NOW WE'RE FACING SCRUTINIES, UM, STATEWIDE, UH, WITH MUD DISTRICTS THAT THERE'S, THEY SEEM TO WORK REALLY WELL HERE IN A LOT OF AREAS OF HOUSTON.
YOU DO HAVE BACK AND FORTH ABOUT IT, BUT I KNOW STATEWIDE, UM, ESPECIALLY AUSTIN AREAS, DIFFERENT AREAS THAT PEOPLE ARE, ARE FIGHTING THOSE.
SO THOSE MAY START TO GO AWAY IN SOME, IN SOME ASPECTS, BUT JUST CURIOUS, WHAT DO YOU MEAN? ARE YOU TALKING ABOUT COMBINING THOSE OR CAN YOU SPEAK TO THAT A LITTLE MORE? CAN I, YES.
MY QUESTION WAS TO HIM ABOUT THAT, IF THAT'S, I DON'T KNOW HOW THIS WORKS.
BUT, UM, UH, FIRST OFF, THANK YOU FOR THE WORK THAT Y'ALL DO.
I, I'M VERY AWARE OF THE, UM, HOME BUILDERS AND, AND BUILDERS, WHICH ARE, WE THINK A CRITICAL PART OF THIS STRATEGY.
UM, WHAT SHE'S RAISING IS, IS THAT THERE ARE SOME CONCERNS, UH, AT THE LEGISLATIVE LEVEL ABOUT, UH, MUNICIPAL UTILITY DISTRICTS ENTERS.
UM, AND, YOU KNOW, AND ABOUT SOME OF THE PLACES WHERE THEY HAVE NOT BEEN AS WELL MANAGED.
WOULD THAT BE A WAY OF, OF RESPONDING? MM-HMM
WHAT WE'RE SEEING IS, IF YOU LOOK AT THE REASON WHY UTILITY DISTRICTS WERE CREATED, WHICH IS TRULY A PHENOMENAL NATIONAL MODEL THAT WAS STARTED, UH, CHAIRWOMAN IN YOUR PART OF THE WORLD ON THE WEST SIDE OF HOUSTON.
I MEAN, MUDS WERE, WERE TRULY IN THE 1960S, SOMETHING THAT WAS NOVEL.
NOW THEY'RE ALL ACROSS THE COUNTRY.
WHAT WE'RE SAYING IS THOSE TYPES OF DISTRICTS WHERE YOU'RE LOOKING AT THE HORIZONTAL AND TRYING TO MAKE THE HORIZONTAL EVERYTHING, ENERGY, POWER, WATER, WHATEVER YOU CAN DO ACROSS THE HORIZONTAL, UH, WITH A DEVELOPER, A MASTER PLAN, COMMUNITY DEVELOPER, AND THE PUBLIC SECTOR, AND DO WHATEVER YOU CAN TO INVEST IN A HIGHER VALUE OF RESILIENCE.
WE KNOW FOR A FACT THAT THE COST OF CAPITAL WILL COME DOWN.
WE KNOW FOR A FACT THAT THE INSURANCE AND REINSURANCE WILL BE REPRICED.
WE KNOW THAT MORTGAGES WILL BE REPRICED.
SO, NO, WE'RE NOT TRYING TO COMBINE ANYTHING.
WE'RE BASICALLY SAYING, CAN YOU USE THAT SAME STRUCTURE, EVEN GO INTO SOME OF THE EXISTING UTILITY DISTRICTS AND DO RETROFITS? THIS IS WHERE A PART OF THIS STRATEGY EMERGES ON PUBLIC PRIVATE PARTNERSHIPS.
I'VE HAD FIVE CUPS OF COFFEE AND NO BREAKFAST.
BABCOCK RANCH, WE TALK ABOUT ALL THE TIME.
BA BABCOCK RANCH, TWO TIME NFL FOOTBALL PLAYER, SID KITTEN BUY 70,000 ACRES OF LAND, UH, DONATES 75% OF THAT INTO A CONSERVANCY.
AND OFF HE GOES TO DEVELOP A MASTER PLAN COMMUNITY.
DO YOU KNOW ABOUT BABCOCK RANCH? NO, I DON'T.
BABCOCK RANCH HAD ONE STANDARD BY WHICH IT WAS BUILT.
IT HAS TO WITHSTAND THE DIRECT HIT OF A CATEGORY THREE HURRICANE.
EVERYTHING THAT WAS DONE AT BABCOCK RANCH, THEY BURIED ALL THE POWER LINES.
IT'S THE LARGEST SOLAR POWERED MASTER PLAN COMMUNITY IN THE UNITED STATES.
UM, SO WHY YOU HEARD ABOUT IT IS HURRICANE IAN THREE YEARS AGO, WENT ON THE WEST SIDE OF FLORIDA, WENT RIGHT OVER BABCOCK RANCH, TOOK OUT A FEW TREES AND A FEW TILES.
IT'S BEEN ON THE FRONT PAGE OF THE HOUSTON CHRONICLES SEVEN TIMES.
WE KNOW THAT THESE PROJECTS CAN BE DEVELOPED THIS WAY, BUT YOU ARE NOT AS A DEVELOPER GONNA SAY, WELL, WE'LL JUST TAKE 30% HIT TO OUR PROFIT MARGIN.
SO THAT IS WHERE WE THINK NOT ONLY IS THIS FROM A A NOT A BUILDING CODE, WE WANT TO INCENTIVIZE, WE BELIEVE IT'S IN YOUR BEST INTEREST ON THOSE HOMES TO BE BUILT IN A WAY THAT NOT ONLY CONTINUE TO BE ON THE TAX ROLL, ALRIGHT? RIGHT.
BUT INDIVIDUALS CAN LIVE IN THERE.
DO ALL THE THINGS THAT THEY NEED TO DO WITH THEIR JOBS AND YOU KNOW, SO WHAT'S HAPPENED WITH BABCOCK RANCH? GO LOOK AT IT.
THEY CAN'T SELL HOUSES FAST ENOUGH.
RIGHT? SO IT IS AN OPPORTUNITY,
[01:10:01]
WE BELIEVE, TO USE THE GOVERNMENT STRUCTURES WE HAVE, BUT TO TAKE 'EM TO THAT NEXT LEVEL, BUT ALSO NOT DO THIS PURELY ON YOUR CAPITAL ALONE BECAUSE IT'S IN A LOT OF FOLKS' INTEREST THAT THOSE HOMES SURVIVE.I DIDN'T WANT TO PAY MY MORTGAGE.
BUT I ALSO NEED TO MAKE SURE THAT THE INFRASTRUCTURE, LIKE WHAT THIS GENTLEMAN DOES BEHIND US, THAT THAT INFRASTRUCTURE IS ALSO MADE TO WORK.
SO WE NEED TO MAKE SURE THERE'S POWER, WATER, ENERGY, THOSE, THAT'S WHAT WE'RE LOOKING AT.
IT'S HOW TO MAKE THOSE TWO MATCH.
I I LOVE HOW YOU'RE ASKING QUESTIONS, SALLY, 'CAUSE IT'S LIKE OVER MY HEAD HOW THAT ALL FITS TOGETHER.
BUT, UM, UH, JUST BUT WANTED TO MAKE THE STATEMENT ABOUT, I KNOW WE'RE TALKING ABOUT DIFFERENT BUILDING CODES AND YOU'RE ALSO TALKING AT WALLER COUNTY, ALL OF THAT.
I UNDERSTAND THAT, BUT AS A BUILDER WHO BUILDS IN THE CITY, I BUILD A THOUSAND HOMES OVER 20 YEARS AND THEY'RE ALL, YOU KNOW, ALL OVER AROUND HOUSTON, MORE STRICT BUILDING CODES WON'T NECESSARILY MAKE MY HOMES MORE RESILIENT.
I CAN, I CAN TELL YOU, AND OUT OF ALL THOSE HOMES WE HAVE HAD FIVE FLOOD AND THEY WERE ACTUALLY ALL BECAUSE OF A CLOGGED TO DRAIN THAT WAS, WAS FURTHER DOWN THE LINE.
I'M SURE EVERYBODY'S HAD A COUPLE SHINGLES HERE OR THERE, BUT YOU KNOW, WE, WE WHO ARE BUILDING TWO BASIC CODE, WHICH I DO, UM, UH, OUR, OUR HOMES ARE RESILIENT HERE WITHIN THE CITY.
I JUST WANTED TO, TO SPEAK TO THAT FOR A SECOND.
AND YOU KNOW, IT'S, IT IS A TEAM EFFORT.
YOU KNOW, IF THE INFRASTRUCTURE'S NOT RESILIENT, THEN YOUR HOME CAN'T BE CORRECT.
DO WE HAVE ANY OTHER GUEST SPEAKERS WHO WANTED TO SPEAK? I DON'T SEE ANYBODY UP AND OVER THE PODIUM HERE.
UM, MERRY CHRISTMAS AND HAPPY NEW YEAR.