LHA Board of Commissioners – June 2023

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LHA Board of Commissioners – June 2023

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Speaker 1 0:00
While so I’d like to call the regular meeting. Tuesday, June 13 2023. At 725. We have roll call please. Me. Chair

Speaker 2 0:18
Susie ferry very mission. Martial arts

Unknown Speaker 0:22
Commissioner. Mr. Commissioner,

Unknown Speaker 0:26
Harold Amin is chairman, Executive Director and

Speaker 3 0:32
Director, sir, a public safety. G Fergana regional manager,

Unknown Speaker 0:38
Chuck McCoy, Commissioner, Tim ball assistant city attorney.

Speaker 1 0:43
Okay. Like we’re all here, we need to review and approve the May 16 minutes. Can I have a motion?

Speaker 4 0:51
I move we approve the minutes as presented.

Speaker 1 0:55
Second. So that’s been moved by the approval of the May 16. Is has been moved by Commissioner McCoy’s, Commissioner to double carry we are now at public invited speakers.

Unknown Speaker 1:08
Oh, let’s vote. All those in favor say aye. Aye. So that passes unanimously. We’re now at public invited chambers. Is there anybody from the public that would like to speak? Or Strider wanted to speak? Thank you. What if you just want to speak?

Unknown Speaker 1:36
Ask a question.

Speaker 5 1:38
Yeah, well, your name names stand tall. And I’m having problems to be putting in to a second class citizenship, because of the type of address I have. And some places are denying services. And I don’t really know who it is. They’re saying the city is putting pressure on him to do this. And then some people in the city says no, that’s just a private group doing that. And it doesn’t quite make sense to me. So at the point right now, I’m just trying to figure out where exactly this is coming from. And who’s pressuring that. So anyway, that’s where I’m at right there.

Unknown Speaker 2:38
Okay, thank you, Stan. We’re now an old new business appointment of a deputy secretary.

Speaker 6 2:49
Yeah, so I’ll speak to that. So when we actually got into the closing element, based on some of the financing models, there was a point where they needed somebody to attest to my signature, that it was actually that had an office with the housing authority. And so the way that it’s structured is that fortunately, condition, Chair came in that day. And it was like, Well, I know the chair is going to be in let’s just signature live for the chair. But as we were moving to closing, had you not been coming in that day, it created an issue. So our proposal is to create a Deputy Secretary of Housing Authority, which is Erica. And then in the sense over signing these documents for somebody has to attest that it’s me signing. We can do it. We tried to say, Well, why don’t we just get a notary? Well, it’s not a notary that you need in there. It’s actually an officer of the organization. And so that’s why we’re putting this on is to have arrogant in that position so that she can attest to my signature and the for the wife and all this and don’t know why that’s in play, but it doesn’t equate.

Unknown Speaker 4:12
Do we need a motion to do that?

Unknown Speaker 4:17
Who’s the secretary?

Speaker 6 4:24
Yeah, that’s the way that that’s the way that it’s always been created is that the executive director, my position is the secretary. And so instead of mangling, everything to try to redo it in thought that the easiest solution right now is to say we didn’t create a

Unknown Speaker 4:44
good around this for six years and didn’t know you will.

Unknown Speaker 4:58
You fine with that.

Speaker 1 5:10
So that motion to nominate to move that Eric be the deputy secretary. It’s been moved by Commissioner Rodriguez. And seconded by Commissioner Martin, almost almost post that has

Speaker 1 5:37
changed. So, we have resolution 2023 Dash 20 the ratification of the formation of Housing Authority ventures, LLC.

Speaker 7 5:51
So Molly Donald housing director on this item. If you recall back on the maple leaf currency council meeting where you adorned and opened up with the LBJ board to make this special item go through, we created lhsaa Ventures, LLP as a limited liability company, for the partnerships in which we from this point on going forward would be a special limited partner only not necessarily in the development role, or the ownership structure other than this special limited partner. A special limited partner role is really because we’re a Housing Authority, affordable housing developers want us to come in in that ownership structure so that they can qualify for tax exemption and some benefits and make sure the housing authority also has a network. And that is really the you know, the center of a web of affordable housing in Loma Linda. So we ended up creating that late in the game on Zinnia at the advice of our special counsel, which Tim also was involved in. And everyone agreed that this was a smart idea. On Chrisman to back a year ago, we entered as an SLP as the Lhh and legal advice. His telling us that if we create a an LLC that is designated for that SLP relationship and use that on video, and then future SLP only relationships going forward, it would just reduce the lhhs liability when they’re entering into those partnerships, to supplement

Speaker 8 7:34
a couple of things that one thing about Chrisman and Zinnia Krishnan, we were more general partners in that deal. Whereas we were in a deal mostly for a special, special limited partnership. And some negotiations kind of centered around at that point. guarantees from somebody who was going to have actual assets protect us, in the case that some liability got the LA J. and partnership wasn’t willing to put somebody who actually had pockets to guarantee Yes. So adding an entity allowed us to give up some buffer space between a potential liability. Another thing to add is the Housing Authority law explicitly allows the housing authority in one of the enumerated authorizations of the housing authority, you’re allowed to create entities that are controlled, and operated by the housing authority to act invest as a partner in partnerships and take any steps necessary to be otherwise develop a project. So the idea in Housing Authority lot was that they they set up the law so that we could do this. And then in the tax exemption, they explicitly allowed that effect to flow through an entity that was wholly owned by housing. And so the sole purpose will be to hold a special limited partnership, so we’re not going to put something as real ownership stake in a property, it’ll just be those point 00 1% Or point zero 1%. Special partnerships is just for the tax exemption. And so we can use that on any projects that we that we have going forward. So it’d be the same. Okay,

Speaker 7 9:22
so recall that there were questions potentially about the the taxing status of the entity to be

Speaker 8 9:32
sure that entity is a limited liability company. I think those questions last meeting about whether or not it was a nonprofit or for a for profit company. It is technically a for profit company and not a nonprofit. That is the way those are always set up. That was the way it was set up as an advisor as our special counsel. Dealing with actually all by For a very nonprofit status for what it does, but all it is, is a pass through entity. So for IRS purposes, it’s a disregarded entity and the money goes so there is a fee for us entering a special limited partnership that goes straight to the housing authority. And then the ownership interest is held by the by this company, this company doesn’t actually receive any assets. And I think you know, the deal is that you know, residual assets

Speaker 4 10:36
are so a corporate partner or member member, which makes us the governing board of the LLC

Speaker 8 10:43
may 1000. Exactly. So owner and member

Speaker 1 10:51
can raise a motion to sell second, a resolution 2023, which is moved by Commissioner Martin seconded by Commissioner Donald Allison Davis. Hi.

Speaker 6 11:08
So, remember this conversation, because we want to start building on this conversation related to the next few items that are coming forward. Okay.

Speaker 1 11:28
So now we’re at resolution 2023, DEC 21, to improve the average house property tax exemption partnership.

Speaker 7 11:39
So, again, your Molly again. So we’re going to be talking about a affordable housing project, a proposed affordable housing project that would not be owned by Le j, we it would be more similar to the Zinnia setup where we are a special limited partner if this if the board decides to do so. And then we’d be looking at being a third party property manager. So this is very similar to this in the SF app, Apple Commons is 72, one and two bedroom units that are proposed at the corner of third and outward. So if there’s a I think, a little gas in that there right now, and then the rest of the land is paper in order. So there’s a long time, while not developer that had an option to purchase that property. They were looking at market rentals market for sale, and then eventually wanted to enter the light tech realm and see how see how that goes. And also it is good financing setup for this specific deal. So,

Speaker 6 12:48
you know, I think the project initially came forward. There was a lot of consternation regarding parking and other issues. One of the things that we also know about affordable housing projects are what we see in parking is all of our affordable housing, it is lower than market rate. And so what our transportation staff would get parking and Christine one, which is very similar to this, it actually had it was parked at a much lower level than what we typically see normal market rate units. And so that was another piece that started making sense as we were just looking at the deal on a holistic way.

Speaker 7 13:35
And this might be happening again. People are looking at converting to like 70 to one or two bedrooms. And so they are pretty far from the entitlement process, they do plan on putting in for a tax credit application August 1. And in order they have to get some ducks in a row to be able to do that one of those is proposing to you on a property tax exemption partnership. At this point, really what they need is just a commitment that we would enter into a partnership. In the past, what we would do is for Chrisman specifically is is the model, we would bring forward a property tax exemption partnership concept with the fee built in and the the fee is based on you know the affordability of the project and several factors. And then you would commit to that as a partnership. And then when we’re preparing for closing we would have to have an actual resolution outlining the entity entering the partnership. So usually that’s what we would do. In this case, we are presenting it as a very conceptual commitment to a property tax exemption partnership that would be specific to the following the policy in effect of that time that we’re entering into the partnership meeting, they need a commitment for their August 1 Tax Credit deadline. But there are some changes happening in the world of income averages that we’re gonna get into shortly that might affect our property tax exemption policy. And so we wanted to make sure it was flexible enough for you to decide later with the exact partnership, of course, it would still come back to you. But this is kind of an interim step to help them with their application that needs

Speaker 6 15:32
pieces. If it doesn’t work out, we don’t have to do it. It’s just letting them be the requirements of the chapter application. And it’s probably good to get into the income average. So the change condition and only take you back to Chrisman to follow started working in that project. If you remember, when we started working with crystal two, we were looking at income average, and what income averaging is. And this gets right, this is also related to the mark every study that you have to do, where the units fit and what it looks like with the component behind income averaging, built on. The premise behind the income averaging is that what right now under typical affordable housing tax credit rules is really set at 60%. And try to get what you can 3040 in that mix, but you can’t go over 60% If you remember Crispin to we were talking about the fact that the IRS has said you can make an average, which bet you can go above 60%. And that AMI you have to stay below eight or something.

Unknown Speaker 16:50
And you have a balanced pins of 40 or

Speaker 6 16:53
30. Right, so you’re getting to the point of income averaging is that what you do is you use utilize the higher incomes of knowing that 67 to 78, to really generate more in that 20 to 30 3040 4050. So you get more down here, but you’re offsetting that with the higher reps. But we didn’t use it in Christmas, too, because the IRS never came out with that their guidelines. And so everyone was sitting there waiting to go, what are the guidelines coming out? Well, the guidelines have come up. And so now we’re seeing people come in with that income average, to this. This will be the only conversation over project we’re also looking at same thing. And so there’s some distinct versus differences. So when you look at income average, when you think about 70 to 80%, it’s really market rate units. Maybe not really, I mean, it depends on what you’re doing. But again, you’re leveraging the in the reds here to get more that’s one of the distinctions is that if you’re in one of those 60 to 7070 to 80% Ami units, you still have to recertify your income every year. So unlike a traditional market rate, where you just pay rent, that’s it. In this case, you have to recertify every year just like you would in a 40% ami. So that’s an additional burden. But people who live in those units have to deal with it is also a burden that lets you maintain the red structures, because the red stars are always going to be in that range. It’s not like you’re gonna have multiple brands. So there’s a benefit, and there’s a negative for the render bits in that section. Averaging companies every deal is going to look different. As we’ve kind of gone through this in a really basic, it’s based on the variables that you’re trying to reconcile is the primary variable going to be increasingly affordability is presented that way. You know, another variable is the type of units that you want to put into it to be a driving variable that may be yet. And there will be times where those two variables conflict with each other. So if you want to put in three or four veterans, it’s going to be harder to maximize the percentage of affordability because the expense associated with building three or four in terms of the amount of real estate that you’re using, because for every one four bedroom unit, you can get definitely to two bedrooms or depending on the space, you may be able to get to two bedrooms in a one bedroom. So every average income deal is going to be different, which is this really the most significant deviation in terms of look at this, because it’s hard to say but we’re just going to do this because the structure of every deal is going to tell you whether it’s good or bad, and it’s going to be dependent on it. number of factors, which is based on the typing and putting into, like applications, that’s the work that we have to do with the world. So I wanted to kind of jump in and cover that, because that’s going to help you all frame your decision on this.

Speaker 7 20:15
So typing onto that. And the reason why we’re coming today with Atwood as more of a concept, the you can, the income averaging really does mean that you still your final affordability for the property as a whole still has to be 60% Ami or below between when you average out all of the units. And so yes, the point is, yes, if you there’s a trade off, let’s buffer with these 80% units, for example, to get those lower AMI units. So in theory, you’re supposed to be able to get deeper affordability in certain units, but not have them filled project. And that’s the reason why they don’t. Most projects under traditional EyeTech don’t have as many 30% units. So they just don’t, they don’t support the finances. So the reason this is coming to Atwood at what is proposed income averaging project Hoeber is looking at that as well. But our property tax exemption policy that we just updated in February, our calculation for our fee structure and the exemption that that project qualifies says all of your units at 60% or below, we wrote it that way, because state statute requires the tax exemption to be proportional to the number of units or the percentage of the property available to low income people. It does not define low income, it leaves it broad. So we’ve been researching across other housing authorities, some have had to to figure this out and some haven’t yet. Everyone so far is going to allow the property tax exemption to apply to a full development up to 80%. If it’s an income averaging litex project. So again, the difference is we have qualified the full tax exemption for a property that’s all 60% and below. So now we have projects that are qualified for Latech. They’re meeting you know, the CHAFA requirements for affordability. chappa also values having mixed income communities and do concentrating poverty, which does does. And so we just need to look at our policies and decide at some point coming forward, we’ll bring it back to you whether we modify our calculation to to make an every unit tax exempt up to 80% or not. So that’s why for atworth, you’re coming up with the concept now. But us proposed still researching still discussing what this could do. And then we would bring back a property tax exemption policy update for you to consider at which time these income averaging projects with then set in stone, but their partnership looks like.

Speaker 1 23:09
So, I mean, I’ve heard you correctly or interpreted incorrectly. You said that the tax exemption policy does not define Monique low incomes,

Unknown Speaker 23:18
the state statute because

Speaker 1 23:22
what happens if you qualify under Chapter your and then the state with your project? doesn’t recognize it as as a low income since they didn’t define it.

Unknown Speaker 23:35
So the statute

Speaker 8 23:37
Yeah, that is specifically speaking to the housing authority. law, so is in the context of housing. And so in the context of the exemption that we can give, like I was talking about through the entity that doesn’t define what low income housing authority law, and particularly that statute doesn’t lie, Tech Chat. IRS has all said these qualify for the rights and remedies. Okay. But our policy says six years, okay,

Speaker 7 24:09
that’s what we read low income, that’s, you know, government has used 60% for live tech in the past, we use 50% for the city programs. And we were basically just we were making it that’s how you determine the proportion in our calculation. So that’s how we were writing it. And then even averaging

Speaker 6 24:37
at the risk of making it more complicated when you’re looking at why they’re wanting to put a cap when you’re looking at income averaging actually. So a part of it’s to maximize the number of units to get more here. Kind of team and conversation will probably go more in depth in development. Update is, in order to get financed, you have to do a market study. And basically what the market study is telling you in the financing world is, what is the likelihood that you can reset all your units, certain AMI lights. And if you remember, during Christmas, when we talked about Chaplain stating that he was chaplain and stated that we’re pretty saturated at 60%, ami. We’re seeing that in the market studies. And so they then have to, in order to make the project finance full, you have to really try to target where you’re putting in the units where you have the lowest sort of inverse in the room to capture rates, so the lower the capture rate, the more likely it is to be used. And so we’re seeing Mrs. For some portable expert. So I’m over, what we’re seeing as a capture rates are below 5% for 30s 70s names, which means the likelihood that you’re going to lose those that are nearly zero for 70 to 80, because there are no 7080s ever seen in the community. And then the capture rate at 50%, ami is 30%. So to give you a sense of the difference you have you’re reducing your read ability, the ability to read the units, because you know it’s a good 25 points higher than the others 60% Ami capture rate is almost 35%. In so they’re having to manage that, in terms of making the project pass the financing taps that lenders bring into play. So you can start seeing where income averaging is becoming more of a discussion point me in the lighting world, because in our specialty here is that if you see saturation here, then you’re gonna have to hear in order to make it more palatable or, you know, to the lenders as you’re trying to figure out. So that’s another piece to this puzzle that. As I stated earlier, again, the recession is something that’s making us reevaluate, ask some additional questions on our housing needs analysis, because we’re seeing some things that aren’t quite lined up. So the market studies incredibly important to us. And I know it’s probably where you are telling us because it took us a while to start bringing these pieces of the puzzle together. But you can see that you can see why they’re trying to use this, what the market studies doing, and it’s really taking this way. And in really moving out of that 50 to 60% are really more 60%.

Speaker 7 28:16
Right? Basically, we’re saturated at 50s and 60s, and they may not leave some very quickly, which is not good for cash flow. Our markets show that we knew we needed 40%. And below, we’ve seen that in studies for several years. You need those, and they will rent up quick because there’s such a need for also seeing that. This instance income averaging is so new, there are no income restricted Sony at 80% units, which again, the benefit of that is amongst many things, you’re not subject to rent increases that are unpredictable, you expect much more stable housing. So

Speaker 6 28:57
if I can add to this, I think is a year or so ago, I heard. Councilmember missioner report joining us. As we were talking through affordability, I think we looked up and said it wouldn’t surprise us in a few years. If on the housing ownership side, we look up and go 80 to 100% is shifting into that capital A ownership. We said wouldn’t surprise us that’s going to occur in the rental market too. That’s what we have to start digging into because I think and I’m going to preface this by saying I think that a lot of our 70 to 80 or 60 to 80 inventory in our community are probably older units. And all the newer units that are coming on are sliding out of that range and then lower rents are higher. And so we’re going back on the housing needs analysis to say carve this up for it shows what it looks like in New York. Heads up, show us what it looks like our historical inventory, because if we find that that’s in fact, what’s occurring on the new units, that’s just the canary in the coal mine to tell us that the rental margin is now going to be significant in that 60 to add, because there’s no units. So those are the additional questions that are actually coming out of what we’re learning in the market study, that’s now starting to inform a broader conversation,

Speaker 7 30:30
that we still want to see what our average rents are in the city, because that’s the people that’s what people have, they’re not going to go to new or old, they’re going to go to what they can afford. So that’s the people we want to see that. But when, when that is including both old and new stuff, all we can we can affect change on new stock from here on with policy, and what we choose to do. So we don’t have control over existing stuff. And so we need to know that differentiation to guide policy. So

Speaker 1 31:08
when you say that you think it’s going to go to the 60 to 80%? Will that be defined through HUD as the next market for loading toward income? Because my understanding what’s your question that the market is saturated? You think in the 60%? Ami, can you because of what you got your tax exemptions for each app? Everything that you got funding for? Can you reduce that in house 40% ami? And does that change your affordability? To you?

Speaker 7 31:51
I think they I think it’s so hard since HUD called 80% Ami low income okay do they do for most places separate that between for sale and rental market. In our area released in the state of Colorado 60% of AMI below was traditionally what rental rental tax credit projects were kept up. And then really like for our programs, our downpayment assistance goes up to 80. So we’ve been looking at this 60 to 80 range as for sale market, even though that is changing, and 60 and below was rental, and then further in Longmont, because our prior housing data showed us that 60 was saturated. For the inclusionary housing programs Council chose to set it at 50. And below because we do 50 And below is where we actually need the units. We don’t need them in 60. Okay,

Speaker 6 32:48
so I need to state the state is not moving there, which still have a lot of work to do on this. But I wanted to tie all of these pieces together because it’s hard to look at this. And we just go well, what about this question is related to income averaging it’s related market studies. You know, once we can dig into it as a policy perspective, we may have to come back and re examine 50% number because we may see something else occurring on that, for lack of a better word that attain peace. But we got

Unknown Speaker 33:35
to keep up with HUD because can we find that the holes

Unknown Speaker 33:43
are you can’t for certain programs? Yeah, okay.

Speaker 4 33:48
Yes, is goodwill, a subsidiary company?

Speaker 7 33:55
Well, is a development company. Then they created this LLC is their subsidiary for this project. But overall, Rockwell is the developer or biotech developer.

Unknown Speaker 34:08
You see was a long time.

Speaker 7 34:11
So there’s a develop longtime alignment developer that is now partnered with a light tech developer like well is the way to

Speaker 4 34:23
differentiate and question just differentiate capture rate from audience

Speaker 6 34:33
capture rate is your ability is basically the market that you have to fill the units. occupancy rate is once you build the units, are they full? So it’s more of what’s your I’m saying this right. What’s what’s the market that you have in your community? As you’re looking at The future occupancies in the future and chatting people

Unknown Speaker 35:06
into addressable markets, excuse me. I was just offering.

Speaker 4 35:13
I was just gonna say question sorry, it’s so so, so there’s always going to ask what you just described sounds to me like a ratio of market potential to numbers of units. So could I use ratio is supposed to read?

Speaker 7 35:40
When say the market potential sounds, right, it’s telling you if there’s a market for this product versus occupancy is how well are you managing that project and turning over and me releasing?

Speaker 4 35:55
So it’s the it’s the number of potential residents or lease or a source of disease disease in relationship to the number of units and whatever the price means.

Speaker 6 36:11
Yes, what’s happening to our new prisons in the US is different.

Unknown Speaker 36:18
Is there any other discussion today the motion into 2023, this resolution 2023.

Speaker 6 36:34
We also give direction to bring back the average cost. Share.

Speaker 1 36:44
Okay, so the motion has been to improve 2023 astrally. One was made by Commissioner Duggan, seconded by Commissioner Rodriguez as high on this coast. So what moved to give direction to staff to bring back the average and policy

Unknown Speaker 37:12
tax exemption policies to consider

Speaker 4 37:15
is the is the property tax exemption policy to consider income average. So yeah. All right.

Speaker 3 37:32
So question is, is this for discussion by the commission. So, as soon as we were discussing, discussing?

Speaker 7 37:46
We would, we could bring back redlines based on research that we continue to do, and then bring that back next month. Okay.

Unknown Speaker 37:54
Okay. Yeah.

Speaker 3 37:55
I just wanted to get a timeline because it sounds like you’ll be facing this pretty soon.

Speaker 6 38:02
Yeah, there were things in front of us. So it was there’s an outlier that we come across. That doesn’t make sense. So

Unknown Speaker 38:17
all those in favor? Aye.

Speaker 1 38:22
And that passes unanimously. Very interesting. A lot of work. So now we’re at the interim executive directors report Herald.

Unknown Speaker 38:42

Speaker 1 38:43
Yeah. What are we going to do the development updates?

Speaker 7 38:48
Sure. I’ll start on those. So our first our big news Zinnia is closed, which by now, but may 25. We just closed on Linnea. Construction is in full force. We were out there this morning. And they are hauling a lot of old asphalt and doing a lot of grading right now. So that construction is anticipated to be 15 months, which means we would have lease up next fall 2024. And so we’re still we’re still finalizing all of the paperwork associated with closing. But we’re also moving into that construction phase and we’re working to make sure residents are aware of what’s going on address safety issues on site since you know we do have a whole building of people living right next door. So moving into a new phase here. Next will be preparing with all of the parties involved to plan or at least up process and nailing down are more specifics on what we’re going to do on our property management plan. So just to recap on the property management plan that is in this the first time that LH AE has entered into an agreement to be a third party property manager. So it’s different than the rest of our Lhh properties. And so that was its own agreement that we’ve negotiated. And we really took that one very seriously to make sure we could rely on that going forward and trying to participate as much because it’s way down the road.

Speaker 6 40:21
So why is it different? Why is this project different than the other projects is different because I can’t remember models or a council. I think everyone is, Councilmember boy, if you if you remember when Fall River was being constructed, and they had a gap, to fill in the balance sheet to 750,000, the city actually stepped in with the Affordable Housing Fund to purchase the property surrounding seeds to allow Fall River to go under construction. And so the way that deal was created, and it’s created, many, many issues is that was prior to the city sitting in the role of the housing authority. So the way that was structured was we were agnostic, and in essence of how it’s going to be built. And in many ways based on I think what we were seeing at the time felt a different group may be more ready to do it based on all the challenges in the housing authority is dealing with so that was this contract. And so we’re here, basically how that was agreed upon with elements. The way that the housing authority now that we’re doing both that we brought the Housing Authority into this was really operations of the facility, economies of scale in that world, but then also the special limited partnerships. So that’s a big reason why this was different. And more like outlived because of the way that that original contract was established. Long before we took over the housing for someone that can clarify that. Thank you.

Speaker 7 42:03
Next, I wanted to give an update on how are you poker. So we are gearing up for that tax credits in middle August 1 application, we have just got that market study Friday. That’s what has been part of this discussion for the last few days. So it’s very encouraging to market. So it looks great. And then we also got word on all the other developments across the state, they’re submitting for tax credits at the same time as Cober at one good one, so those two will be in the same bucket being considered. And then generally, it seems like there is more applications than average, but not by a longshot. So there’s more competition than average. But they do think that there are certain aspects of this project that are not being hit with others. And so they’re hopeful, but there’s still about three and a half applications to every one hospital ward. So and that’s not too far off of normal. And that’s why sometimes it is common to go back for a second time. If you’re not successful first. Other than that, we’re in full concept design, we’re getting some really great visuals of what the property might look like. And we’re on July 18. In our next meeting here, we’ll bring some of those visuals and we’ll there’s going to be several over items coming to that day to prepare for that time spent with application. Then there’s any questions on our cars.

Speaker 6 43:35
So overall income averaging is going to look different. So we’re looking at no different than Apple because remember, AdWords wanting to go over is 1234 bedroom units. So the point that I made earlier, that variable, start shifting how you look at the affordability is because you know there’s a point that it’s likely in that conversation that we’re going to have to weigh those two variables against each other in terms of three and four bedroom units versus percentage of affordability. Because it just takes up more space. Storage suggesting

Speaker 1 44:19
I’m just curiosity is the child care center out.

Speaker 7 44:25
It is in at the moment. We’re CGSC can get funding. They’ve got meetings set up with people all over this state. It feels like the next couple of weeks to talk about gap funding opportunities.

Speaker 6 44:37
So it was out. Back in because we were Shannon is made aware of some foundations and others that are interested in this project. For the reason that the foundations were interested in it is because it’s unique in that there’s not many housing projects, any that Our family and looking at this. So a lot of little different childhood, some will do housing, both. So that’s intriguing to me, I also think that makes a tax credit application more viable. All that being said, August was a deadline to apply. So we’re going to go through another declaration of because you have to have all of your capital stack in that application, maybe another iteration, where for some reason, the foundations can’t move fast enough, pull it out, but hold it, because I think we live again,

Speaker 7 45:37
could well for sorting that out, so we could hold it as a as a block, and then say that it’s self funded, and then that fund attack, but there’s nuances. And then the last key update I wanted to give is on the potential sale of the building at six 50 million. So this is the building that’s not currently leased by the SEC for people with disabilities, we’ve been negotiating with them about the purchase of that property, they’re very interested. And in July and again, July’s meeting, it’s gonna be pretty busy. We’re going to be we’re finalizing right now a draft purchase and sale agreement for your consideration, and then an MOU for services that they can provide the llj as part of our negotiation. property. So that is all working perfectly right now. It’s right next to each place.

Speaker 6 46:40
So to your goal, you’re set for a six properties. And within five years, we’re directly involved with three that you’ve heard about this. And I want to be connected to for that effect and go against facilitating geonet. So there’s four right there. And then we bring the property issue with will grow mobile homes to be for affordable housing, that’s coming into play, we’re probably gonna hold a little bit on that, because I think there’s value in the first main transmission and transferring development and trying to figure out how that works. So I think we’re pretty good progress and results. In the next

Speaker 7 47:32
five years. We started we set that goal in mid 2022. Or one year ago, July amazing.

Unknown Speaker 48:07
Contact with the housing otherwise referred to you soon.

Speaker 6 48:28
And that’s Yeah. And that’s not Housing Authority. That’s actually the city that owns it. And so the stormwater owns it now. And then affordable housing counseling and purchasing. So yeah, no, nobody’s contacted us.

Unknown Speaker 48:44
Now, yeah, there were many things about inspiration about several aspects

Unknown Speaker 48:53
of the deal. Your goal

Unknown Speaker 48:57
is, is to slowly start.

Unknown Speaker 49:05

Speaker 7 49:07
So the plan for awhile was outlined in a city council information item that came to on June 6, on the council side. So basically, the plan is to plantain at this point, so that you can have a nice, you know, rolling set of developments, and to make those calls about how it plays into a lot of the time productive. So

Speaker 6 49:31
yeah, one of the things that you will probably see both as the housing authority and potentially as the city council, so we’re maxed set wise, or we’re looking at all the development work. And so we were evaluating how we can agree on some additional development positions. And what we’ve realized based on buying or putting in an affordable house To find and feel blue that’s coming in, and we actually have enough money to support that. But the financial policy doesn’t allow us to do that. And so it’s going to toggle both sides of the equation is because the benefit is that the Housing Authority and the development staff to help get these projects moving capacity, potentially, more maybe down the road. But it’s connected to this other side. And so I got Smalley to work with teresian and budget in terms of what we can do what finances are available to them, we could potentially create that position now. And in connection with affordable housing for the future. Because their backs, we can’t take anymore based on the current workload. So we’re evaluating people on

Speaker 4 50:59
top of your question about how are we doing on your development in reference to retreated to I carry? Everywhere I go. I keep thinking one of these days, we’re going to return to these and take stock of where we are a progress we’ve made, what are we learning that needs to be refreshed that there are some of the objectives some of the that happens? The dates have already passed, right? So in some ways, it’s out of date, but it would maybe I’m the only cares about this volume good enough. I’m not suggesting to retreat. So I’m not trying to add in the workload. But but if it would be helpful to me. If somebody took that you can turn landscape documents. Here’s what we said we do. Here’s what we’ve done. is no longer applies. But does apply. Here’s the way it’s something we’ll keep this current otherwise it’s we spent a day came up with pretty good stuff. And we’ve never looked at it all time. I’m sure. We

Speaker 7 52:08
we we did go over an annual report in January. showing the progress that we made a tweet tweet to and what the focus originally

Unknown Speaker 52:18
I think it was actually

Speaker 7 52:20
Oh wow. So I can provide that. And then I mean already things are happening so quickly that that six or six months out from that already have updates

Unknown Speaker 52:37
on the back of watch the recording

Speaker 3 52:47
I only remember because I think we were coming back and you knew you were going to be

Unknown Speaker 52:51
presenting that that particular

Unknown Speaker 52:57
I think it was

Speaker 4 52:59
I was out of town for a week the last week in January and it was

Speaker 3 53:17
it was an honor need you yeah

Speaker 1 53:31
so Molly, great update are you

Speaker 2 53:40
so as you can see, we have raised occupancy up to 95% So one of the highest since I’ve been here. I think a lot of this is due to how we did change our waitlist procedures got a month and a half ago we have Diana our admin assistant managing all the waitlist she’s calling as soon as we get a notice we’re trying to previous these units going through the current statuses I’m actually going to do an update more today and not even as if what I did this report so as most neighborhood we now have five vacant once the alphabet and we’re going to probably have two more down for meth and two others are pending rentals. I suppose seniors is that we had six vacancies. We just had six vacant but five of those are now rented as of this morning and just what not least, Fall River has just one adapter myth but that’s already pre rented and that should be back online on June 15. So they will be 100% occupied by the end of the month. Person in Lodge. She has pending applications for both those units. Her main focus is getting ready for a React inspection with head tomorrow. So head will be out there doing the physical going through all the cabinets, closets, everything and anything for probably about six to eight hours. The sweet So we have just four vacancies and three of those are down units. The one other one rentable unit is already rented. It’s an LG unit. So once that’s rented, all of our available units are filled, it will be the highest occupancy. This means it’s adding three plus years. Spring Creek has no vacancies at this moment. And then the briar wood and village place we currently are not using

Unknown Speaker 55:22
dependent cells.

Unknown Speaker 55:27
Any questions on the occupancy?

Speaker 1 55:32
Just a curiosity, what is making the occupancy go up because we have more units available, or people actually,

Speaker 2 55:40
we’ve changed our procedures in housing because we did have some stagnant waitlist, that would have been working awesome. So we did open up all the way lists are now open, we are not closing them. So that is once for Aspen senior, for example, we have 25 people trying to get a rental on that one person to so we’re just getting those waitlist open. So if somebody walks in and they’re on the waitlist and they have a voucher or they move next week, we’re trying to get them processed and in a unit.

Speaker 1 56:08
And it’s not specific to a development. Like if they wanted to live in spring creeks, for example, that’s no vacancies there. So will you will you allow them to go somewhere else

Speaker 2 56:20
you can apply for whatever properties they want. So we have a waitlist for each property currently. So is this each property has different AMI is different features different layouts. So some don’t want to be on the west side with someone to east sides and wants to know, so they choose where they’re at, we have I’d say probably half of our waiters are on every waitlist applicants trying to get so they can get the first available.

Unknown Speaker 56:49
So probably up

Speaker 2 56:51
to 250. I’m very short this month. So moving from the super to my office. But soon as Susan Spaulding and the mediation team have been out doing our coffee and conversation and it’s been great, amazing resident. See back after these meetings, just don’t worry a lot. We’re doing fair housing with the residents. But we’re letting Susan teach it. And she’s kind of going through reasonable complications at the same time and what property management has to deal with why we do what we do, why we say what we have to do with the with and how we do with it. And she gives the laws and the situations going all the way back to Martin Luther King and civil rights on some of these Fair Housing things. So it’s making the residents understand where management comes from, when we say no, we can’t do that, or we have to treat you like we treat your neighbor. And it’s been kind of eye opening for the residence. And we’ve gotten a lot of great feedback from those. And those are continuing this week at two more properties. Everything else I think I’ve basically gone over with the only biggest thing happening at our property is village place, they’re very upset that we took away their their assigned parking, they got a one year warning, but this is all leading up to race indication. Because we need to have spots available move people around sponsor construction dumpsters here and there, serving you name it, but we just wanted to have flexible preferences

Speaker 7 58:14
and make it consistent with the rest

Speaker 6 58:17
of the world. And if you all remember a gene that was a property were previously probably overdose or at the time pretty others the property manager was assigning parking spots, but also assigning ADA parking spots which you’re not allowed to retire. And so you know, we had a bit of an upheaval when we started it. We said, Okay, we’re gonna give you a year, but we still have to do it. We’re now transitioning into getting ready for the presentation.

Speaker 1 58:53
And probably some of those conversations with Susan Spaulding has to do, yes, let them understand the reasoning.

Speaker 2 58:59
It actually was very beneficial at that property because she went through a reasonable accommodation and what qualifies for reasonable accommodation where we didn’t grant residents who need a closer parking spot and assigned parking spot, it just can’t be an ADA. So we have seen a few reasonable accommodations and we’re treating them just like we do all the other properties that are the same request. Alright,

Unknown Speaker 59:24
we’re done with property updates, and safety.

Speaker 3 59:29
All right, so calls for service have actually taken a dip which is

Speaker 3 59:39
seems like a lot of our problems. The same folks have problems with a lot of them have resolved themselves. So that is good. We will now I know. Molly fills us in last time when I was absent last month, but the ROI with MHP so that document is pleated, it’s in MHPS hands and it actually had started from at Feaster, the sergeant of our core unit. So I’ve been working with him and have that document listing several different entities for folks to sign off up for release of information from both hospitals, to the school district to public safety to LH A. And we did this for many reasons. And I’ll give you one example. So we have, we have a person that’s having some significant issues, calls for service are out are crazy. Property Management has some information, public safety has some information. MHP has a lot more information. And really, you know, just us asking the question, you know, if this person is on their meds, we get the hem and haw. So basically, this document is still optional. And MHP will present it to each each tenant and then we explain, and at the end of the day, it’s to create a better situation for those people that get into this crisis. So that’s great that that will be coming. It’s done. It just needs to be presented basically to llj staff. It’s pretty simple document.

Speaker 1 1:01:24
So this is a paper document, correct? Do you share information through a database so that you would know exactly where it is.

Speaker 3 1:01:39
So due to HIPAA, though that cannot be shared. So it may MHP would take that ROI. And it would be it would be verbal, yes or no this person. And there are some specificities to the document. Meaning that if this person doesn’t want to discuss, maybe they don’t want to discuss their medications, they’re given the choice. But they’re also taught, it’s spoken to them, really through MHP how valuable it is to discuss that. So again, all options are on the table, but at least it’s on the table for them. And we don’t struggle so much. Good. And lastly, I know Harold just mentioned the peeler metal detector we received that we installed it in village place the last 24 hours got some readings there. Really, we’re trying to figure out some a few inconsistencies with it. But now it’s in Harold’s office on a glass shelf. And we’re hoping it basically levels out to some normalcy so we have basically a place to start.

Speaker 7 1:02:52
So just to recap, but that is a unit that we know is positive and vacant. And so we’re testing because we have our recycle regular math test process and then we have this so it’s not in it’s not in an occupied unit.

Speaker 3 1:03:11
And if we placed that the decision was made to place it anywhere where we already knew the numbers. So still working through the data on that

Speaker 1 1:03:22
to see if it registered the same number correct. And it did not

Unknown Speaker 1:03:27
alright, that’s to be determined

Unknown Speaker 1:03:38
we’ve got the we’ve got the feed

Speaker 6 1:03:41
Yes. So we’ve been working at it and so we saw it do supposed to do about one of the things we really need 24 hours based on talking to them to see what guys because so rescue it may interfere and so they wanted a longer period of time so it did what we thought it was going to do originally did something that I’m sitting there God I don’t know why. So somebody’s gonna so we’re gonna be watching this over the next one for hours and probably move it around the building. So we can just kind of get a sense of your baseline

Unknown Speaker 1:04:28
make sure that everything’s clean

Unknown Speaker 1:04:38

Unknown Speaker 1:04:41
anyone else? Any questions? Any questions?

Unknown Speaker 1:04:49
Detectors shouldn’t really

Speaker 4 1:04:59
come in just made me a question about the this question about the form and that information being shared and HIPAA and all the issues around HIPAA. The Dixon Dixon project was it was intended to

Speaker 6 1:05:18
address that variation. Yeah. So Christina and sharing community caring communities in Alberta or work the next phase, and what we want to do is actually beta test that communication system with the housing authority. In the piece cancer, they’re talking about ROI, you know, there’ll be a different version of that. So, Christina notebaert are having this conversation, please still, yeah. And we just got to go, Is it ready to roll so you can start trying it out? Because that could actually be a really good communication tool because fireable offense, so if it’s a medical issue, and they allow, let’s say, paramedics to have a meeting firewalled off the police or they love using paramedics, but not us. So they’re still working on that and then they were talking about it yesterday

Unknown Speaker 1:06:20
anyone else? No. See no one else? I have motion to adjourn. So moved. Second.

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