09:35:04 >> Welcome, 09:35:06 everybody, to the July bond 09:35:09 other sight committee meeting. We are 09:35:11 excited to have 28 folks on 09:35:13 the call, including three of 09:35:16 our bond oversights committee 09:35:18 members this morning. 09:35:20 We're going to go over quickly some of 09:35:22 the traditional, or now what are 09:35:24 becoming traditional zoom meeting 09:35:27 rules, as they were, for 09:35:29 participation. There will be time at the end of 09:35:32 the meeting for public 09:35:34 comment and so, if you are 09:35:36 interested 09:35:38 in 09:35:40 comment, Stacey, 09:35:43 reaching out through the chat 09:35:45 for public testimony? >> That should work, 09:35:47 yes. We have time for public 09:35:49 testimony set aside at the end of the 09:35:52 meeting, and they can sign up in the chat 09:35:54 if they would like to give testimony. >> 09:35:57 Wonderful. And so, for most of the 09:35:59 meeting, if you are not part of the 09:36:02 presentation panel or the oversight 09:36:04 committee, if you would be so kind as 09:36:06 to hold your comments either to the 09:36:08 chat or to 09:36:10 the -- and for the 09:36:12 public testimony, as Stacey said, you 09:36:14 can let us know in the chat 09:36:16 if you would like to do that. 09:36:19 And, with 09:36:21 that, I will go over quickly the on line 09:36:24 meeting and protocol tips. So first of 09:36:26 all, if we can be patient and 09:36:29 respectful of each other, please make sure that 09:36:31 your speakers and microphone 09:36:33 are working. 09:36:36 Anneliese, Susan, 09:36:38 Allan, as you are 09:36:40 the primary questioners today. It 09:36:42 looks like Allan is 09:36:45 off mute. >> Good morning. >> I will 09:36:47 say good 09:36:50 morning, Susan. >> 09:36:52 There's introduce yourself before 09:36:54 speaking. I should have done that 09:36:56 myself. I'm Shannon 09:36:58 Callahan of the Portland Housing 09:37:00 Bureau. The chat will be open at the end 09:37:03 of the meeting. So, with 09:37:05 that, I think we can go right into 09:37:07 the agenda this 09:37:10 morning. And it is just nice to 09:37:12 be here and see faces, even 09:37:15 if they are in a little 09:37:17 box. Also, for committee 09:37:20 members 09:37:23 , do you want to 09:37:25 raise your hand if you want to 09:37:27 interject, or are you fine, there is only three of you 09:37:29 this morning, if you want to 09:37:32 unmute. Does that work for you just to 09:37:34 unmute? >> Perfect. I'm 09:37:36 seeing one thumbs up, a real thumbs 09:37:39 up, not a Zoom 09:37:41 thumbs up. With that, we will 09:37:43 turn it over to Jill 09:37:47 Chen. >> Good morning and thank 09:37:49 you. I'm Jill Chen 09:37:51 of the Portland Housing 09:37:54 Bureau. I will go quickly 09:37:56 through the project 09:37:58 dark board and update. Next 09:38:01 slide, please. There 09:38:03 we go. And, just 09:38:05 wanted to let everyone know, so 09:38:07 far everything is looking really 09:38:10 well, progressing really well. Out 09:38:12 of the 10 projects that 09:38:14 are in 09:38:17 predevelopment or we have 09:38:19 only two that are still 09:38:21 waiting for predevelopment 09:38:23 loans. That's the Joyce and 09:38:25 the 09:38:27 Prescott. Joyce have already 09:38:29 gotten approval, it is in 09:38:32 documentation, and Prescott 09:38:34 has applied for the 09:38:37 predevelopment loan. We're also 09:38:39 very excited because we will have 09:38:42 projects going to close by 09:38:44 the end of this year. As a matter of fact, in 09:38:46 addition to our two projects that's 09:38:49 not part of the 09:38:51 bonds, we will have between five and seven 09:38:53 bond projects 09:38:55 closing between November and 09:38:57 sort of the 1st 09:38:59 quarter, 2021. One of the first 09:39:01 projects that we'll be 09:39:04 closing is the project 09:39:06 called 09:39:09 115th at Division. This is 09:39:11 going to be presented to you today and they are 09:39:14 targeted close November 2020. 09:39:25 They will have units in 09:39:28 production this year very much exciting. Another 09:39:30 is 09:39:32 a 40-limit 09:39:34 expansion, the highest in the 09:39:36 area of laurel hurst and 09:39:40 Kanton, in the neighborhood. That is 09:39:43 exciting. You will see a couple of new 09:39:45 projects and we're very pleased. 09:39:47 Without further adieu, I will 09:39:49 send that to, I think Mike 09:39:51 Johnson, coming up next to 09:39:53 talk about the bond issuance. 09:40:05 >> Good morning, everyone. Meek 09:40:08 Johnson, finance and county manager 09:40:10 for the Bureau. First slide 09:40:12 here, as you 09:40:14 may or may 09:40:17 not have 09:40:19 heard 09:40:26 the City did issue the 09:40:29 bonds. $164 million, got a very 09:40:31 good deal on be the 09:40:33 borrowing cost, less than 2%. 09:40:35 Substantially less than what the 09:40:38 estimates management provided us, 09:40:41 so that was good thing. The sale of 09:40:43 the bonds actually occurred on 09:40:45 June 3rd and the money has been 09:40:47 in the bank since June 11. 09:40:49 It will be there earning interest 09:40:52 until we start drawing 09:40:54 funds for projects. So that 09:40:56 means that, to date, we 09:40:59 have issued three different 09:41:01 issues sox 09:41:03 that's 09:41:06 2017-a, 2019-b, and 09:41:09 this would be the 2020, 09:41:11 the 2020-b 09:41:14 issuance. So 217 million to 09:41:16 date. So what that means is 09:41:19 there will be 09:41:21 another bond about issued, 09:41:23 at least one more, as we continue 09:41:25 on the process. 09:41:27 Any questions on that 09:41:29 bond sale? 09:41:34 Okay. So we will move 09:41:38 along to the expenditure report. 09:41:40 So that's primarily in the 09:41:42 memo that we sent you, that we do 09:41:45 have the very 09:41:47 nice graph that 09:41:50 Tanya does. Again, not much 09:41:52 in the way of 09:41:55 changes because we haven't really started 09:41:57 construction on anything yet. We have 09:42:00 done a number of 09:42:02 predevelopment loans. We 09:42:05 do those predevelopment 09:42:07 loans out of another funding source because 09:42:09 there is always the chance 09:42:11 your pro sect might not 09:42:13 move forward in the predevelopment stage. We 09:42:15 do not anticipate that, but out 09:42:18 of an abundance of 09:42:20 caution, we made it out of another 09:42:22 source so those aren't reflected in this 09:42:25 report. We've had, you know, some 09:42:27 additional costs and program 09:42:30 deliveries sense the March numbers, 09:42:32 so another three months of 09:42:34 costs. However, we're not able 09:42:36 to have the exact number on 09:42:38 that 09:42:41 because, as of the night of 09:42:43 July 8 when I put this together, 09:42:46 there's still tractions 09:42:48 processing for year 09:42:50 end 09:42:54 fiscal 19-20. The next quarter 09:42:56 report will reflect not only another 09:42:58 three months of spending but some of 09:43:00 the clean-up 09:43:02 transactions for 09:43:05 June 09:43:07 30 09:43:11 . There is more interest on 09:43:14 the bond procedures than we had prior 09:43:16 to, so the leftover be funds 09:43:18 from the 2019 issuance so 09:43:20 a little more interest there. This 09:43:22 number is going to start expanding 09:43:25 dramatically as we earn interest 09:43:27 on 164 consider 09:43:33 $164 millionlooking at the 09:43:35 graph, really there has been minor 09:43:38 changes, again, 09:43:42 as we have 09:43:44 made 09:43:47 changes in both the interest 09:43:49 credits, really don't make a 09:43:51 change, is really just what we 09:43:53 kind of call the 09:43:57 finance business decimal changes at this 09:43:59 point. As they started 09:44:01 making disbursements 09:44:03 on projects, these graph 09:44:05 numbers will start changing more 09:44:08 dramatically. So that's what I have. Any 09:44:10 questions? 09:44:12 >> Hey, Mike, I have a 09:44:14 question. I was just getting ready to 09:44:16 type in the chat, but 09:44:18 since you paused, I'll 09:44:20 ask it, if I might. If that is okay. >> 09:44:22 Sure. >> It is a question about 09:44:25 timing of bondishiance. Can 09:44:27 you 09:44:31 issuance. What is the driving factor? Is it 09:44:33 the timing of the market, 09:44:35 the bond market, and 09:44:38 all 09:44:40 that? 09:44:44 >> Both of those go into 09:44:46 it. We want to make sure we have 09:44:48 the fund being available to be 09:44:50 making draws. We may make 09:44:52 draws as early 09:44:54 as perhaps December or January, so having the 09:44:56 money in place for that, it does take 09:44:58 about six weeks to turn 09:45:01 a bond sale around, 09:45:03 so we want to, you know, make 09:45:05 sure we've given us enough 09:45:07 time for that. Yeah, right now, 09:45:10 in terms of where the 09:45:12 market is at, we 09:45:14 were extremely 09:45:16 fortunate and picked a good week 09:45:18 to sell bonds. If we sold the 09:45:20 week before or the week 09:45:23 after, those issuance costs may have been 09:45:25 different and the number of folks 09:45:27 bidding on those bonds would have 09:45:29 been different. 09:45:31 So it's a really difficult market right 09:45:33 now to try to judge when to 09:45:36 do 09:45:38 it. 09:45:40 Management picked a good week. The 09:45:42 other thing that we want to make sure 09:45:44 we're not doing is, you know, sitting 09:45:47 on a lot of 09:45:50 bond 09:45:52 proceeds, you 09:45:54 know, for too long. So as 09:45:56 I mentioned, we'll earn 09:45:58 some interest as these bond funds 09:46:00 go down. For example, if we had done 09:46:03 the entire issuance at 09:46:05 once, you know, we would 09:46:08 have 260-some million dollars setting around 09:46:10 earning interest, and is that 09:46:13 really the most efficient use of that 09:46:15 money. So that's the other thing 09:46:17 that goes into the decision 09:46:20 making, really over kind of looking at a 09:46:23 two-year window, when do we expect 09:46:25 to spend the money. >> If 09:46:27 I may interject, Allan, the 09:46:29 city is complete more sensitive to 09:46:31 the fact that 09:46:34 we, once we issue these bonds, these 09:46:36 start becoming a taxable event for the 09:46:38 taxpayers of Portland, and we're 09:46:40 very sensitive as 09:46:42 a jurisdiction not to 09:46:45 necessarily have to have taxpayers peaking 09:46:47 for something that has not 09:46:49 yet come into fruition so that 09:46:51 is a general policy of the 09:46:54 City that is slightly different and some 09:46:56 other local government's policies 09:46:58 and the way they look as these. 09:47:00 And the City is also, 09:47:02 as Mike indicated, is looking at 09:47:04 other -- we have a myriad of fund 09:47:06 being that we're bonding in the City 09:47:09 over all so it fits 09:47:11 largely into some of the other thinking of what is 09:47:13 out there and what the City 09:47:15 is going 09:47:18 for. 09:47:21 OMF, debt management, did a great 09:47:24 job with the sale. We were 09:47:26 thankful they could it time this just right. It 09:47:28 is a lot of 09:47:30 work. They also did an 09:47:33 amazing job with 09:47:36 predicting what we would need the next two years. >> 09:47:38 That is helpful, thank 09:47:40 you. A question for Jill 09:47:42 about the tash board. I don't know if we're going to return 09:47:44 to that or if others have questions. >> 09:47:47 Go 09:47:49 ahead, Allan. We 09:47:51 don't have team to return to the dashboard so 09:47:53 we might as well talk about it now. >> 09:47:55 A question I had, 09:47:57 I wasn't fire if it was something we 09:48:00 discussed before it partly involved 09:48:03 the 115th Division. On 09:48:06 the Matrix dashboard, 09:48:08 which is super helpful, also. It 09:48:10 shows the population service focus is 09:48:12 families rather than some of the other 09:48:15 priority populations, 09:48:17 immigrants, refugees and 09:48:19 communities of color. And, with the location of 09:48:21 that, I guess 09:48:23 I'm curious why we wouldn't have 09:48:25 the other priority populations there and 09:48:28 how that gets 09:48:30 determined. I don't remember if this 09:48:32 is a conversation we had before or not. >> I 09:48:35 think this was a conversation we may 09:48:37 have had at the 09:48:39 award level when we have awarded 09:48:41 them. >> Okay. >> But, 09:48:43 actually, today -- >> They're here. >> They 09:48:45 are here and you can ask them 09:48:47 that question. >> Okay. >> And I 09:48:49 think I saw them come 09:48:51 in, so they're probably taking 09:48:54 notes already. >> Perfect, thank 09:48:56 you. >> Okay. 09:49:02 >> So, if there are 09:49:04 no questions on 09:49:06 the project highlights or 09:49:09 dashboard or expenditure reports, shall 09:49:11 we continue on the 09:49:13 presentations? If 09:49:15 okay, then go 09:49:18 ahead. I think I am up 09:49:21 next. 09:49:27 I think one of the things 09:49:29 we wanted to briefly update is 09:49:31 the impact of covid-19. 09:49:33 Next slide, please. One of the 09:49:35 things we, as the 09:49:37 Housing Bureau be, have started 09:49:39 working on is developed four work groups 09:49:41 to look at the impact of covid in 09:49:43 terms of the housing 09:49:46 development, operational stabilization 09:49:48 and rental stabilization 09:49:51 and homeownership stabilization, 09:49:53 and this is for both the long and 09:49:55 short-term. Today I will be talking about the 09:49:57 affordable housing development, because that's 09:49:59 what is impacting the 09:50:01 bonds. Because our projects are not yet 09:50:04 constructed. So we will 09:50:07 be looking at the information I'll share with 09:50:09 you today is really about what 09:50:11 we're seeing in over all 09:50:13 development from the 09:50:15 developers, perspectives from the construction 09:50:17 side, as well as the 09:50:20 financing side. We have a final meeting to 09:50:22 be held on 09:50:25 project 09:50:28 stabilization and that will probably be 09:50:30 happening in next month. Next slide, 09:50:32 please. And the process for all of the 09:50:34 work groups follow as similar process 09:50:36 to talk about the needs 09:50:39 assessments and what -- and then, 09:50:41 what is the feasibility. Essentially, 09:50:43 what is it that 09:50:45 PHB have in our control 09:50:49 that we can help, be it our projects 09:50:51 or be it the 09:50:53 residents or the clients what can we 09:50:55 do to help. And, 09:50:57 one of the things we are 09:51:00 really looking at are the 09:51:02 impacts. What is the long and short-term 09:51:04 impact, the extent, but also how are we 09:51:06 going to be addressing 09:51:09 inequities? And, receiving 09:51:12 feedback from the different work groups. 09:51:15 Next slide, 09:51:17 please. 09:51:22 A summary of the first meeting we 09:51:24 had was back in May 09:51:27 with the housing developers, and they spoke 09:51:29 about a number of areas where they 09:51:32 had some concerns, there were 09:51:33 some construction issues that 09:51:36 relates to delays and 09:51:38 permitting. There's some financing issues 09:51:40 that relates to, say, 09:51:43 senior debt and also tax credit 09:51:45 pricing. Concerns about the 09:51:48 projects, both in 09:51:50 sort of in their portfolio, as well 09:51:52 as those coming 09:51:55 across. There had been concerns especially 09:51:57 about commercial. As you all know, 09:51:59 a number of our 09:52:02 projects have commercial ground 09:52:04 floor or maybe some mixed income 09:52:06 and there are some areas of that 09:52:08 there were some concerns. But 09:52:11 there was also some upsides, 09:52:13 potential for land banking, 09:52:15 increased competition, 09:52:17 so maybe pricing on some of 09:52:19 the contracts. And 09:52:21 possibly some changes in 09:52:24 policies that might be beneficial to 09:52:27 affordable housing. Next 09:52:29 slide, 09:52:31 please. 09:52:36 The next meeting we had was talking with 09:52:38 contractors, 09:52:41 subcontractors and different business associations that was 09:52:43 involved in the contracting 09:52:45 business. So you can see, 09:52:47 and I'm sorry, I 09:52:49 didn't mention it earlier, the 09:52:52 participants are on the left 09:52:54 side, the take aways are on 09:52:56 the right side. One of the key 09:52:59 takeaways we heard from the contractors 09:53:01 was keep the money flowing. 09:53:04 I should mention we had takeaways 09:53:06 focused on sort of general takeaways 09:53:08 and another slide that focuses on 09:53:10 the impact on equity, 09:53:12 and especially on equity and 09:53:14 contracting. So the first takeaway 09:53:17 was, keep the money flowing. All the 09:53:19 contractors and subs 09:53:21 and association were saying the feeling 09:53:23 in the market 09:53:25 was that the commercial construction 09:53:27 was going to 09:53:30 take a slow down, 09:53:32 and many of the contractors needed 09:53:34 to have affordable housing 09:53:36 in order to continue in 09:53:38 having a stable business. So this was sort 09:53:40 of keep the money going. 09:53:42 There was also some sort of balancing 09:53:44 that they needed 09:53:47 between workers and 09:53:50 issues about safety. And sort of 09:53:52 the construction schedule. There was 09:53:54 a lack of PPE, 09:53:57 supplies, all kinds of sort 09:53:59 of issues about 09:54:01 liability, safety protocols, the list 09:54:03 goes on, you can see. 09:54:06 There was some discussion about 09:54:08 potential need for construction 09:54:10 contingencies and the 09:54:13 importance of having that built in so that 09:54:15 workers and contractors 09:54:17 could be safer. 09:54:19 But there was also some 09:54:22 shoutouts that folks made, 09:54:25 especially to BDS with 09:54:27 their technical 09:54:29 solutions. And, this relates to 09:54:33 inspections, they were, the 09:54:35 BDS folks were really great on that in 09:54:37 terms of inspections and 09:54:39 design review. Next 09:54:42 slide, 09:54:44 please. 09:54:47 In terms of delving deeper 09:54:49 into equity and contracting, 09:54:51 as you know, for the 09:54:53 bonds, we have a 09:54:56 30% DMWSB 09:54:58 requirement or 09:55:01 target, and 09:55:03 that was something I think 09:55:05 all of the contractors 09:55:08 realized, this covid situation is really 09:55:10 impacting, especially the communities 09:55:12 of 09:55:14 color, and because of that, 09:55:17 too, they are also seeing it happening 09:55:19 in the contracting world 09:55:21 or the construction world. There was 09:55:23 a talk about less established 09:55:26 firms having no 09:55:28 or smaller war chests because 09:55:30 they're having a harder time 09:55:32 withstanding the downturn. And a 09:55:34 number of black-observed 09:55:38 observe owned businesses were just going out 09:55:40 of business so that was a 09:55:43 major 09:55:45 concern among 09:55:47 many. There was also a 09:55:49 desire for set asides 09:55:51 for specified firm being, 09:55:53 especially larger projects. So those 09:55:55 projects where we have hundreds of 09:55:58 units, maybe the smaller contractors 09:56:00 can't do, say, dry wall or 09:56:02 windows for that many, but maybe they 09:56:04 can do a smaller 09:56:06 packet. There was 09:56:08 also some questions about whether or 09:56:10 not we had some preservation could be 09:56:12 used for certified 09:56:14 firms, although we have also seen 09:56:16 that, from the 09:56:19 developer side, we have, and 09:56:21 preservation was actually harder to do because of the 09:56:25 occupied residents. 09:56:27 Another key, I think, observation 09:56:29 was that there were fewer women 09:56:31 on the job 09:56:33 sites, and it's not just 09:56:35 childcare for women but for 09:56:37 all participants it was being 09:56:41 impacted. So some things for 09:56:43 us to consider, especially as we go and 09:56:45 look at how could we mitigate 09:56:47 the impact of covid, 09:56:50 especially on our 09:56:52 DMWSB certified 09:56:54 firms. Next slide, please. 09:56:59 In the final 09:57:01 group, we had just this week, 09:57:03 earlier last week, talked with 09:57:06 affordable housing funders and 09:57:09 investors. And across the 09:57:11 board, there was 09:57:13 conservative under writing for loans and 09:57:16 low income housing tax credits. And 09:57:18 this becomes very critical because, 09:57:20 as you all know, 09:57:22 when we sought the 09:57:26 Constitutional 09:57:28 amendment for the production of 09:57:30 units with this bond, we wanted 09:57:32 to leverage the 09:57:35 funds. And, with the impact for 09:57:37 our loans and our 09:57:39 equity, that can impact how much 09:57:41 we're going to be able to leverage. 09:57:43 And we heard 09:57:45 from our 09:57:47 participants that capital was 09:57:49 becoming more selective. There 09:57:52 was some 09:57:54 concerns that tax credit 09:57:57 pricing, they all mentioned expecting 09:57:59 tax credits to drop to 09:58:02 about 96-cent being instead of where things 09:58:04 may have been, I 09:58:06 think, in our review of all of 09:58:08 our projects. We are 09:58:11 about 94, 95-cents on average when 09:58:13 we awarded the projects. 09:58:16 There was also some concern 09:58:19 being that commitments made by 09:58:21 the investors were going to be 09:58:23 okay, if it was made 09:58:25 in 2020, and we had 09:58:27 signed term sheets. 2021 could 09:58:29 be more of a 09:58:32 concern. And some wait and see attitude as 09:58:34 to where things happen and 09:58:36 how the stabilization 09:58:39 would work. There 09:58:41 was also a concern about the 09:58:44 impact for 09:58:47 our buy pock 09:58:52 BIPOC community, especially 09:58:55 investors serving that 09:58:58 BIPOC communities because it was 09:59:00 shifting from those with a, call 09:59:02 it established record and balance 09:59:04 sheet. As we all know, some of our 09:59:07 developers focused on communities of color 09:59:09 may not have a strong financial 09:59:13 sense. 09:59:16 There was, you can call it some 09:59:18 concerns but also talking 09:59:21 about some potential opportunities 09:59:23 in looking at land 09:59:25 banking, somebody even 09:59:27 mentioned you had 09:59:30 a-plus-plus properties coming on the 09:59:32 market, which we had not seen 09:59:34 ever in the past. Next 09:59:36 slide, please. 09:59:41 I wanted to show this slide for you, 09:59:43 it shows the history of tax credit 09:59:46 pricing. Just to let you know, when we look 09:59:48 at this little chart, the 09:59:50 latest one was from 2015, but 09:59:52 I know we've had more updated 09:59:54 slides that show about right 09:59:57 now, about 95-cents on the 09:59:59 dollar and we're 10:00:01 seeing that 10:00:03 history 10:00:06 has shown 10:00:08 that 10:00:13 LIHTC is volatile so we can 10:00:15 look at what we are as 10:00:17 an 10:00:19 institution 10:00:22 is 10:00:30 changing. We're working with our 10:00:32 partners, very supportive of 10:00:34 them, you can see Mike mentioned earlier 10:00:36 in his expenditure 10:00:39 report, we have already made a number of 10:00:42 contingencies to support them. Questions? >> 10:00:44 Can I just ask if you would clarify 10:00:46 for 10:00:48 the group 10:00:50 what, for instance, a decrease in tax credit 10:00:52 pricing to 10:00:55 the 2008 levels that 10:00:57 we saw would mean in terms 10:00:59 of our assumptions for what we thought 10:01:01 we could leverage for tax 10:01:03 credits in our bond projects 10:01:05 so what kind of financial gap would that potentially 10:01:08 create this some of our 10:01:09 assumptionings on the 10:01:12 projects in process over all. >> 10:01:14 Sure. Thank you, 10:01:17 Shannon. 10:01:24 If we went to 10:01:27 90-cents on the dollar, it would be 10:01:29 an additional request across all 10:01:33 projects. Some had lower 10:01:35 assumptions already, some may have commitments in 10:01:37 terms of letters of interest. 10:01:39 So we will have to work with each of the 10:01:43 projects. >> Okay. 10:01:46 So that gives you 10:01:48 a change. Okay, thanks, 10:01:51 Shannon. Any other 10:01:55 questions? Allan, you 10:01:58 look like you're ready to say something. >> 10:02:00 Do any of the other 10:02:02 committee members have questions? 10:02:13 >> I don't. I thought 10:02:16 it was sad to hear the 10:02:18 minority contractors, some may not be 10:02:20 able to survive the 10:02:22 covid, just sadding, but I 10:02:24 don't have a 10:02:27 question about 10:02:29 it 10:02:31 . >> We were talking about the 10:02:33 contractors, the different ones, as much 10:02:36 as a third to 40% of the 10:02:38 contractors they knew were going into financial 10:02:40 difficulties so it is a 10:02:42 major concern that we have. 10:02:47 >> That is an area 10:02:49 that, one of my questions, I 10:02:51 know the city has part of 10:02:53 its -- has passed 10:02:55 covid-19 value statement around 10:02:57 equity, and I think this is an area 10:02:59 where it might 10:03:01 reflect. I think when very often we think about 10:03:04 the impacts 10:03:06 on communities that haven't had 10:03:08 access to opportunity much in the past, we find 10:03:11 a lot of those opportunities now 10:03:13 are the last ones in the door. As 10:03:15 we hit these crisis 10:03:17 points, we know host to last ones in the door 10:03:19 tend to be the first ones 10:03:21 out the door in these moments. So 10:03:24 I hope it is something we can pay attention to 10:03:26 and figure out if there is 10:03:28 anyway for us to 10:03:30 reverse that 10:03:33 trend 10:03:49 . This is maybe more information 10:03:51 than we need, but 10:03:54 my sense with 10:03:57 LIHTC, there is some correlation 10:04:00 to 10:04:02 LIHTC pricing, whether it is the economy or 10:04:05 most likely, I think, 10:04:07 tax related. Corporate tax 10:04:10 rates or potentially the 10:04:13 LIHTC pricing. Do you know what 10:04:16 pressures on 10:04:18 LIHTC we might be able to anticipate? Maybe that is 10:04:20 not a question we need to answer other than 10:04:22 we anticipate there is going to be 10:04:24 a downward pressure on 10:04:26 pricing. The other part of that question 10:04:28 is, if a 10:04:31 project, if part of 10:04:34 their funding set is 10:04:37 LIHTC, it is not necessarily the bureau's 10:04:39 responsibility to make up that gap, right? 10:04:46 That is part of their funding stream in the 10:04:48 project, not directly part of 10:04:50 PHB. Am I phrasing that right? >> 10:04:53 Well, there's two things. One is you 10:04:55 had two questions, right? >> Yes. >> 10:04:57 One is a downward pricing 10:05:00 on 10:05:02 LIHTC and what are some of 10:05:04 the, you can call factors, affecting 10:05:06 appetite. What we 10:05:09 saw last 10:05:11 year 10:05:15 was some really great pricing. 10:05:18 Even 100-cents on the dollar. That 10:05:20 was 10:05:22 really great. Actually, 10:05:24 we saw some that went over. We knew 10:05:26 that people were attracted to 10:05:29 LIHTC because the market was good, they were 10:05:31 making money and they united some kind 10:05:33 of tax credit to off set 10:05:35 those. So it was, I 10:05:37 think, a good opportunity. We also saw 10:05:39 a lot of, heard from our developer 10:05:42 partners that, when they went 10:05:44 out to bid, they had 10:05:46 multiple offers, so they could pick 10:05:48 and choose so these made these things 10:05:50 where we're seeing the pricing may 10:05:52 come down a little bit, 10:05:54 but also the level of interest 10:05:57 or the number of offers 10:05:59 or the terms and conditions 10:06:01 may change. >> Okay. >> That's 10:06:03 the first one. So we don't 10:06:05 know. There is a lot of uncertainty 10:06:07 in the market. I can we all wish we 10:06:10 had a crystal 10:06:12 ball. And your question about, is it up 10:06:14 to the Bureau to make 10:06:16 up the gap? Normally, 10:06:18 we don't make up gaps, but I 10:06:20 think the issue for us is 10:06:22 we want 10:06:24 affordable housing to essentially house 10:06:26 the people 10:06:29 that we know 10:06:35 come out of this situation that need 10:06:37 housing. And it is 10:06:39 affecting our communities of 10:06:41 color more disproportionately so 10:06:44 we really want to get those out. So 10:06:46 we've been working with our different 10:06:48 developer partners on getting 10:06:50 also their different sources of 10:06:52 funding. I should have mentioned 10:06:54 earlier in my dashboard, we actually had two 10:06:56 of our 10:06:58 partners apply for 10:07:02 OHCS lift and two of them got 10:07:04 it. It was Stark Street 10:07:06 which got, I think, over -- let 10:07:08 me just get my 10:07:10 notes here. 10:07:13 3.8million. And Las 10:07:17 Adalitas got 5.4 million. So 10:07:19 we're helping them get the 10:07:21 funding. We're also working with 10:07:24 them -- yay. To work with their 10:07:26 numbers in terms of can they value 10:07:28 engineer. How can they work to mitigate 10:07:30 the impact of 10:07:35 pricing 10:07:40 . >> I see with the two 10:07:42 products, it does list the funding source so 10:07:44 to talk about how that mix comes 10:07:46 in. I appreciate 10:07:49 the been bureau's commitment to support the 10:07:51 projects, given our over all 10:07:55 goals. >> Ask the hard questions to our 10:07:57 developer partners. 10:08:00 Okay. >> So they might 10:08:02 get 10:08:04 a pass. >> Any other 10:08:07 questions? 10:08:13 Okay. If not, then I will hand it 10:08:15 over to Tanya 10:08:19 and 10:08:22 introduce anna Mann and go for it. 10:08:25 I guess, Tanya, do you want 10:08:27 me to make the 10:08:30 introductions. >> This is Tanya. You 10:08:32 can make the introductions. We're 10:08:34 also ahead of schedule a couple 10:08:36 minutes so maybe take this opportunity 10:08:38 to go back. 10:08:41 Dr. Holt is with us. We have some kind 10:08:43 of administrative items from our last 10:08:45 meeting notes we may want 10:08:47 to go through those 10:08:50 process steps before we get started 10:08:52 on 10:08:54 project 10:08:56 teams 10:09:03 . >> We should take 10:09:05 advantage. Hi, everybody, by the 10:09:07 way. Was with you on 10:09:09 one instrument but my web cam 10:09:12 doesn't work with that one so I was 10:09:13 trying to get in on the 10:09:15 ipad so you could actually see and 10:09:17 hear me and was 10:09:19 having the challenge with that, but 10:09:22 hello, technology is great when 10:09:24 it works. Thanks, Shannon, 10:09:26 for 10:09:28 opening 10:09:30 up. Operating with just keen 10:09:33 efficiency, getting the meeting up 10:09:35 and going, thump for 10:09:37 covering that. There are a few things we 10:09:39 do need to cover. We did 10:09:41 not go over and approve meeting 10:09:43 minutes from our 10:09:46 last meeting 10:09:52 . We will go over 10:09:54 that. Everyone had a chance to look 10:09:56 them over. Are there any 10:09:59 questions from the Oversight 10:10:01 Committee. >> Susan emmons, 10:10:03 I reviewed them and they looked fine 10:10:05 to me, the minute notes from 10:10:08 the last 10:10:10 meeting. 10:10:13 >> Excellent. If everyone is okay 10:10:15 with the approval of the 10:10:17 notes from the last meeting, in this 10:10:20 environment, you can do a thumbs up and I think we 10:10:22 would be okay with that. 10:10:25 Perfect. 100% approved 10:10:27 for the meeting minutes. We did 10:10:29 our check in to 10:10:32 make sure that our party, all the 10:10:34 members of the Oversight 10:10:37 Committee that are present identified 10:10:40 themselves. Todd is not able to make the 10:10:42 meeting and indicated he would not be here 10:10:44 for that. 10:10:47 Let's see if there is anything else 10:10:49 that we needed to 10:10:52 cover. I think Janet did a 10:10:54 great job, if 10:10:56 you've got comments or 10:10:59 committees, please use the chat function to do so 10:11:01 to engage in that 10:11:04 way if you are guests in the meeting. I normally 10:11:06 say this is a meeting that is open to the 10:11:08 public, while not a 10:11:11 public 10:11:13 meeting. That 10:11:15 simply means this is a 10:11:17 meeting of 10:11:19 the Bond and 10:11:22 Oversight Committee 10:11:25 meeting, if you want to 10:11:27 weigh in, please feel 10:11:29 free to contact us 10:11:31 directly. Shannon, was there anything else 10:11:34 we needed to tap into? >> I believe that is 10:11:36 the bulk of our business items 10:11:38 so we will come around again at the end for 10:11:40 any folks who have 10:11:42 indicated that they want 10:11:44 to have public testimony. 10:11:47 Otherwise, I think we're ready 10:11:49 to hear from 10:11:51 our two project teams, unless 10:11:53 others have something else they would like to 10:11:55 address. 10:12:01 >> Well, let's 10:12:04 go. Project team updates. I don't know, 10:12:06 Tanya or Jill, are you doing the introductions. >> 10:12:09 This is Tanya again. I can do the 10:12:11 introductions. We're really excited to 10:12:13 have our bond-awarded 10:12:15 project teams coming to give us 10:12:17 some updates. We will start things 10:12:19 off with the project 10:12:22 team for the 10:12:25 Anna Mann 10:12:27 house. 10:12:34 I will hand it over 10:12:36 for them to 10:12:38 walk through their presentation. >> Good morning. Thank you for 10:12:40 inviting us to be with us today 10:12:42 can everybody hear 10:12:45 me 10:12:47 okay? 10:12:50 My name is Julie 10:12:53 Garver, I'm housing development 10:12:55 director for Innovative 10:12:58 Housing. We have Carolyn 10:13:00 doughery, project developer 10:13:03 and our financial 10:13:05 guru for Innovative 10:13:07 House projects. 10:13:09 And also Leah Cooper who is 10:13:11 director of housing 10:13:13 operations, so they will be chiming in on a few 10:13:15 of the slides and available to answer 10:13:18 questions, as well. 10:13:21 So we're starting out with a 10:13:23 picture of our property. We 10:13:25 are still just kind of pinching 10:13:27 ourselves to know that 10:13:30 we got this property and that we were 10:13:32 awarded funds. It's an 10:13:34 amazing property. The more that 10:13:36 we dig into it with the team, the 10:13:38 more impressed we 10:13:40 are at how the previous 10:13:43 owners of the buildings were good 10:13:45 caretakers and how this land 10:13:47 will really benefit vulnerable 10:13:50 populations into the future. So we're just 10:13:52 -- we continue to be really thrilled 10:13:54 with the property. Next 10:13:57 slide, please. 10:14:00 So, our 10:14:02 unit mix 10:14:04 is has remained 10:14:07 consistent percentage wise, while we were able to 10:14:09 add the south building and the 10:14:11 additional 40 10:14:15 units so the 10:14:18 unit mix and income 10:14:20 restrictions are depicted on the slide. 10:14:22 For our service partners, we 10:14:24 have innovative housing that is 10:14:26 providing some of the 10:14:29 PSH and resident services. We are 10:14:32 partnering with 10:14:35 Irco, the immigrant and 10:14:38 refugee community organization, as well 10:14:40 as Luke 10:14:45 Dorf. 10:14:47 The individuals that experience homelessness or 10:14:50 risk of homelessness. 10:14:52 Next 10:14:54 slide. 10:15:08 Carolyn will talk about funding sources. >> The 10:15:10 funding sources are ones we have 10:15:12 worked with in the past. We are 10:15:14 using both low income housing 10:15:16 tax credits and historic tax 10:15:18 credits, since it is a historic 10:15:20 building. And the main other source we're 10:15:22 using is a 10:15:25 private first mortgage. And then we're 10:15:27 getting a little bit of energy funding in the 10:15:30 project. There was some talk before 10:15:32 this about tax credit pricing. We have 10:15:35 partnered with key bank. We were 10:15:37 lucky enough to get an 10:15:40 LOI for them before covid. We did a 10:15:43 competitive LOI process and they 10:15:45 were far and away the best partner to work 10:15:47 with. They offered us 10:15:49 strong terms. I can tell you, 10:15:51 Sara and I between us have talked to them 10:15:53 three times in the last month to check 10:15:55 in to make sure they will hold their 10:15:57 pricing, and they have reassured us 10:16:00 repeatedly they will. I had a consideration with 10:16:02 a different investor we have no relationship with and got 10:16:04 her feedback on the 10:16:06 market, and she reassured me and 10:16:08 also said that direct investors she 10:16:10 has seen are continuing to hold pricing, they 10:16:12 are dropping back and not investing 10:16:14 in any new projects, which is part of 10:16:16 the reason the pricing market is softening 10:16:19 because there is less people out 10:16:21 there. But, I feel 10:16:23 fairly confident that these sources are 10:16:25 going to stay. I also feel like we have a little 10:16:27 bit of cushion in this, 10:16:29 these sources. I have been 10:16:31 fairly conservative on what the interest rates 10:16:34 are going to be. Right now, 10:16:36 the rates I'm using 10:16:38 are above what current rates are, but 10:16:41 rates are at such historic lows 10:16:43 I didn't want to counter them getting 10:16:45 lower but I'm opt mess particular they will 10:16:48 remain lower than I have projected and will 10:16:50 be able to increase the senior debt a little 10:16:52 bit if we need to, 10:16:54 any more funding along the 10:16:57 way. >> You 10:16:59 may have questions but that is my 10:17:02 main blob, so let's move on to 10:17:04 the next slide. >> Okay. 10:17:06 Talking a little bit about development 10:17:09 progress, 10:17:11 our team has been working 10:17:15 consistently, special thanks to week 10:17:18 masi at PHB, she has been 10:17:20 helpful in helping us move through the 10:17:23 process and navigating the steps we 10:17:25 need to do and just being part of 10:17:27 the team and give her input, so 10:17:29 we appreciate that. So the 10:17:31 architects have been 10:17:34 working through design development 10:17:37 phase. We completed our 10:17:39 tree survey and we are going to 10:17:42 be able 10:17:44 to save a significant amount of trees, 10:17:46 especially the larger tree. We had a 10:17:48 team meeting earlier this 10:17:50 morning, and the team reported they 10:17:52 were able to come up with a very 10:17:54 unique structural 10:17:56 system for one small portion of 10:17:59 the south building that takes the pressure 10:18:01 off of one of our very 10:18:03 large trees on site, 10:18:06 so we were very excited 10:18:08 to hear about 10:18:10 that. And we are excited about the 10:18:13 addition of the south building, the 40 10:18:15 more units, 10:18:17 and give our 10:18:19 appreciation to staff and the committee for 10:18:24 adding. It will allow the project 10:18:26 to increase its number of people 10:18:29 served and also the strength and stability of the 10:18:31 project. And, then, we're exploring 10:18:33 some creative partnerships for 10:18:35 resident be 10:18:38 gardening and dance yoga classes 10:18:40 for children. And Leah from our office 10:18:42 can talk a little bit 10:18:44 more about 10:18:46 that 10:18:51 . >> Good morning, everyone. It is 10:18:53 early days in the developing the programming 10:18:56 aspects but the idea is to have a 10:18:59 gardening program that will promote healthy 10:19:01 eating, so our residents will 10:19:03 be working a garden and taking fresh 10:19:06 fruits and vegetables back to their 10:19:08 units. The project is so unique, it has 10:19:10 a lot of space for cooking and cooking 10:19:12 classes and so we're really excited about 10:19:14 that. There is also some unique 10:19:16 spaces in the building for us to be able to 10:19:19 have dance classes and yoga 10:19:21 classes, and we're really hoping to 10:19:23 tie that with our 10:19:25 relationship with IRCO so these 10:19:27 are culturally responsive 10:19:29 classes so that we can, you 10:19:32 know, meet the needs of all 10:19:34 of ourretion dents. >> 10:19:36 Great, thank you. Next slide. 10:19:48 A couple of changes, 10:19:50 the one you're probably familiar 10:19:52 with the zoning 10:19:55 increased the density 10:19:58 of the property too 10:20:00 RM1 which was the trigger to allow us 10:20:02 to include the 40 units and the 10:20:05 addition and funding of the 40 units 10:20:07 to the project. So those have 10:20:09 been the major changes. The minor 10:20:11 changes are just normal things that happen in the 10:20:13 course of development. We're working with 10:20:15 a partner that 10:20:17 is adjacent to us who 10:20:20 is building a senior live 10:20:22 facility along Sandy, so we're 10:20:25 cooperatively working together on 10:20:27 property line issues and things 10:20:29 that they need and things that we 10:20:31 need, and so that conversation is going well. 10:20:33 Next slide, 10:20:36 please. 10:20:38 So our 10:20:41 DMWSB update, we 10:20:43 are 10:20:45 working on 10:20:48 contracting with our mechanical 10:20:51 electrical, plumbing and fire 10:20:53 sprinkler right now, 10:20:55 and this is a 10:20:57 great opportunity to include more 10:21:01 certified 10:21:04 participation and we've done things 10:21:06 like Jill was mentioning 10:21:08 earlier, splitting scopes 10:21:10 so there can be more 10:21:12 participation so that split has mainly focused 10:21:14 on having the new buildings in 10:21:16 one scope and the old buildings 10:21:18 in another scope. And it 10:21:20 allows for people with 10:21:23 different skill sets and 10:21:25 it's going to bump up 10:21:27 our participation, so we are 10:21:30 definitely on track for, you know, 10:21:32 the 70 to 80% 10:21:36 MEP certified participation, and then 10:21:38 be the on track for 30% for 10:21:40 the entire 10:21:43 project. We are working 10:21:45 with architect 10:21:47 and contractor now, 10:21:49 planning our extended out 10:21:52 reach programs, working with, you 10:21:54 know, who to get involved to be 10:21:57 most effective on 10:22:00 making sure that our out reach is 10:22:02 targeted and effective and thorough. 10:22:04 And we will be having early 10:22:06 meetings for certified subs 10:22:09 prior to the bid period opening, so 10:22:11 we're looking at, you 10:22:13 know, early fall time frame 10:22:15 for some of those meetings, 10:22:17 and that gives time for 10:22:19 certified subs to come and meet the 10:22:21 general 10:22:23 contractor and 10:22:25 also look for assistance, if there 10:22:28 is any assistance needed 10:22:30 in preparing bids and then 10:22:32 also plenty of time to do 10:22:34 extended out 10:22:37 reach. Next slide, 10:22:39 please. 10:22:41 So issues and challenges. 10:22:44 They're pretty normal that come up 10:22:46 during building investigation. We do 10:22:48 need to replace a 10:22:50 sewer line that's inside the 10:22:52 existing building, under the floor 10:22:54 of the basement. It's in a 10:22:56 pretty good place to do that. The good 10:22:58 news is that the exterior sewer 10:23:01 lines are in good shape. We did a 10:23:03 major investigation and sewer scope, and so 10:23:05 it is good news that those can 10:23:07 be reused. 10:23:10 And, then, we're working 10:23:12 with PBOT on 10:23:14 our driveways. There were 10:23:16 existing driveways to the site. 10:23:18 They were fairly narrow and they're 10:23:20 different, today's street standards are different. 10:23:22 So we're working with 10:23:25 PBOT to see what we can 10:23:28 do to 10:23:30 both meet their requirements 10:23:32 and preserve their 10:23:35 trees. Some are on site, some are street 10:23:37 trees but we want to 10:23:39 preserve as many trees as we can so 10:23:41 we're working through that issue. Next 10:23:44 slide, please. Leah, this is 10:23:46 Leah's slide to talk about. 10:23:50 >> Sure. So 10:23:52 we have developed a partnership with 10:23:55 IRCO. We have a long-standing partnership with 10:23:57 them, but we've developed an 10:24:00 MOU for referrals for priority 10:24:02 refers, rather, for the 10:24:04 units at 10:24:11 Anna Mann. 10:24:13 We hope to speak to them a lot in 10:24:16 the planning and design 10:24:18 programs so we can be designing 10:24:20 programs around our space as much as 10:24:22 possible. We're also working with 10:24:24 Luke Dorf. 10:24:26 Specifically, we have an MOU to 10:24:28 work with, our 10:24:30 relationships with Luke 10:24:32 Dorf to provide comprehensive 10:24:35 case management for 10:24:38 families looking for mental 10:24:40 health or drug and addiction services, 10:24:42 so we will be working with those agencies quite a 10:24:44 bit as we develop programming. 10:24:46 And, then, IHI will be 10:24:48 staffing the PSH 10:24:51 positions, so we will have two 10:24:53 full-time service staff in the building. One 10:24:56 will be working specifically with the 10:24:59 PSH 10:25:03 units developing comprehensive 10:25:05 services with those families, and starting 10:25:07 working with them at the 10:25:09 application we found. We found in our other 10:25:12 projects that starting work very early on 10:25:13 in the process is helpful. 10:25:16 Then, the resident service coordinator will 10:25:18 do the work of all of 10:25:21 our resident service 10:25:23 coordinators, which is stabilization, 10:25:26 eviction prevention, referrals, 10:25:28 resources and working very closely with the 10:25:31 community. We are aware that as these 10:25:34 residents settle in to the community, it will be a new area 10:25:36 for a lot of them and that will 10:25:38 present challenges we're 10:25:40 hoping to develop really good relationships with the 10:25:42 community around the 10:25:45 project. 10:25:48 >> The one other thing that's 10:25:50 on this slide that we're going to be 10:25:53 working toward is working with some 10:25:56 existing residents on getting 10:25:58 some feedback about 10:26:00 outdoor amenities and 10:26:02 community space. Leah, you want to 10:26:04 speak just a little bit more about that? 10:26:06 >> 10:26:10 Yeah. The building and the 10:26:13 land that it's on 10:26:15 is really unique space so 10:26:17 we wanted to have some 10:26:19 feedback specifically around safety and issues like 10:26:21 that, so working with them about 10:26:24 lighting and safety 10:26:26 concerns, and also talking to them about what 10:26:29 kind of thing they want on 10:26:31 the project. So what are our 10:26:33 playgrounds going to look like? What are the 10:26:35 lawns going to look like? What kind of 10:26:38 amenities can we offer that 10:26:40 really meet the needs of the community 10:26:42 rather than just assuming 10:26:44 our community would want a certain 10:26:46 thing. We really hope to get some feedback so the 10:26:48 place feels very welcoming and 10:26:51 liveable and useful to everyone. >> 10:26:53 Great, thank you. Next slide, 10:26:56 please. 10:26:59 Okay so that's our 10:27:01 presentation. We're happy to answer 10:27:04 questions, if you have any questions 10:27:06 for 10:27:08 us. 10:27:12 >> Hi, Julie. 10:27:14 Carolyn and Leah, this is Jill. Thank you so 10:27:16 much for your presentation. 10:27:18 I see in the group chat that 10:27:21 Allan had 10:27:23 a question about, 10:27:25 are there any -- with the addition of 10:27:28 the historic tax 10:27:30 credits funding and the 10:27:32 historic destination are there any 10:27:34 additional requirements that might present 10:27:37 barriers to development? >> 10:27:40 Well, we have utilized 10:27:42 historic tax credits on several 10:27:46 projects in the 10:27:49 past, and so we know what 10:27:51 to look out for and we 10:27:53 have a consultant that's on board to 10:27:55 help us through the historic tax 10:27:57 credit process, as 10:27:59 well. It's going to align 10:28:01 very closely 10:28:04 with the City landmarks process we 10:28:06 need to go through, which is, as 10:28:08 you know, similar to 10:28:10 design review. And, so, 10:28:13 we've already gone 10:28:15 through our design 10:28:17 advice request hearing 10:28:19 feedback, we got that 10:28:22 feedback from the landmarks 10:28:24 commission, and they are, they 10:28:26 provided positive feedback about 10:28:28 the property to us. They like the 10:28:30 south building, they like that 10:28:32 it's going to buffer 10:28:34 the original landmarks building from 10:28:36 the parking area, they like that 10:28:38 we're going to be saving so many 10:28:41 trees. They provided positive feedback 10:28:43 on the exterior materials and 10:28:45 design of the new 10:28:47 buildings. So, we were, 10:28:50 you know, 10:28:52 cautiously 10:28:54 optimistic bland Mark's initial feedback. We 10:28:57 also had a 10:29:00 preliminary SHIPO 10:29:06 review, and Shepherded that 10:29:08 for us through the environmental review 10:29:11 process and their comments were also 10:29:13 positive. They asked some questions about a couple 10:29:15 of areas, which is not 10:29:17 unusual. We're continuing to design some of 10:29:19 the historic areas, 10:29:21 historic entry to the building is a little 10:29:23 awkward, it has had a lot of changes over 10:29:25 the years, so we will be working 10:29:28 through those issues to satisfy 10:29:30 land parks and 10:29:33 Shipo and the National 10:29:35 Parks Service. So there 10:29:37 are you issues we will work through 10:29:39 but it isn't materially different than we would 10:29:41 need to do with design review. 10:29:49 So we will continue to work through that process 10:29:51 and I'm sure we will have 10:29:53 an update in 10:29:55 the next opportunities on our chance to speak with 10:29:59 you. 10:30:16 . >> I will include they have a number 10:30:18 of issues with tax credits and it normally 10:30:20 has not impeded the 10:30:23 development, it he's actually been helpful to get the additional 10:30:25 tax credits so the amount of 10:30:28 funds that PHB is 10:30:30 providing is 10:30:32 reduced. >> Great, thank you. >> 10:30:34 I had 10:30:36 a question. Susan 10:30:40 EMMONS, one of the bond 10:30:43 oversight. Your presentation, you 10:30:45 have such a great track record in the 10:30:47 community. I love how 10:30:50 you said involving the residents, 10:30:52 like what is the playground going to look 10:30:54 like. , I do you such great work and so well 10:30:56 thought out. I was thrilled about 10:30:58 the extra 10:31:03 units 10:31:08 . When do you think you might you be 10:31:10 opening? Is that hard to 10:31:13 say? 10:31:15 Like 10:31:19 202? >> What is our 10:31:21 lease up schedule look like? >> We're going 10:31:23 to start construction 10:31:26 probably in Marveling. I 10:31:29 believe t is now a 24-month 10:31:31 schedule with the new units. 10:31:33 So we will be done -- 10:31:35 so 2021, 10:31:37 yeah, so we will -- we have a 10:31:39 six-monthlies up because it is such a long 10:31:41 project, we will be leasing up the end 10:31:46 of '22, '23. >> Thank you, Susan, so 10:31:48 much for your comments. We 10:31:50 really appreciate it. And we feel really 10:31:52 privileged to be able to work on this 10:31:56 project. >> 10:31:58 You all may not know this but we 10:32:00 moved our offices into the 10:32:02 building, because we can socially 10:32:04 distance beautifully so I think 10:32:06 we're bonded more to this building 10:32:10 than any other buildings in our portfolio because a 10:32:12 number of us spend most of our day there 10:32:14 now and, as Julie 10:32:16 says, it is a real privilege. >> It is 10:32:18 a temporary our office 10:32:20 space to socially distance and 10:32:22 also to be able to provide a little bit of 10:32:24 security for the building because it is a 10:32:26 large property and we wanted people to 10:32:29 see that there was activity 10:32:31 there every day, and so 10:32:34 it sort of met a couple of 10:32:36 different challenges for us. 10:32:38 But it is super nice 10:32:40 to be there and people are going to 10:32:42 really enjoy living there. 10:32:46 >> Thank you very much. We appreciate the 10:32:49 presentation. Thank you. >> Thank you. >> 10:32:52 Any other smells or questions from the 10:32:55 Oversight Committee? 10:32:59 Anneliese? No? All right, excellent. 10:33:01 Then we will go to, I think, the 10:33:03 next group of presenters. 10:33:13 >> This is Tanya, really 10:33:16 quickly. I believe we have most of our project 10:33:18 team folks with 10:33:20 us for 10:33:22 115th and Division. I think I saw them 10:33:24 come in, so I will hand it over 10:33:26 to our project team for this 10:33:29 project from 10:33:31 related northwest 10:33:33 and Central City 10:33:37 Concern. 10:33:53 >> Just wanted to say, it is 10:33:55 such a pleasure to see that 10:34:01 Anna Mann house beginning to work, I toured 10:34:03 that so a pleasure following that 10:34:05 presentation. I'm with Related 10:34:08 Northwest with 10:34:10 Stephanie condor 10:34:13 and Mary reign 10:34:15 with Central City Concern. We will give you an 10:34:18 update on 10:34:20 our 115th and Division project 10:34:22 we're incredibly excited 10:34:26 about. 10:34:39 Other partners involved are 10:34:42 Boys and 10:34:46 Girls Club, and 10:34:48 IRCO. Our priority communities are 10:34:50 families, communities of color, 10:34:52 immigrants and refugees 10:34:54 and immigrants 10:34:57 experiencing homelessness. We have a unit 10:34:59 mix up here and we've got about 10:35:01 3 % of the units are 10:35:04 going to be at 30% 10:35:06 AMI or below, and 7 of those 10:35:09 units are permanent supportive housing 10:35:11 units, as well. 10:35:24 Half of the out of bounds e 10:35:26 units are family sized two or three 10:35:29 bedrooms. We estimate 343. 10:35:32 Next slide, please. >> And we want 10:35:34 to mention we have seven units that are 10:35:37 PSH units. >> 10:35:40 Right and we've 10:35:43 got our funding sources here, 10:35:45 along with the beautiful picture of the 10:35:47 interior courtyard. So this is 10:35:49 a 4% tax credit deal, so, you 10:35:51 know, with the Portland housing bonds, 10:35:53 we've got the 4% tax credit equity 10:35:56 we're estimating at about 12 10:35:58 million. We are anticipating senior 10:36:00 debt of 10:36:02 roughly 7.4 million. We've got an award 10:36:05 from 10:36:07 OHCS from the GAP 10:36:09 funding for 1.2 million and 10:36:11 we're anticipating some 10:36:15 OHCS MEP 10:36:18 at 100,000 so total about 10:36:20 29.5 million. And leveraging 10:36:22 our Portland bond funds 10:36:25 by 2.5 times. While we're on 10:36:27 this slide, a quick informational piece 10:36:29 on the building here. It is 10:36:31 kind of in a crescent 10:36:34 shape. What you see is the courtyard, which 10:36:36 is going to be nicely landscaped, 10:36:39 obviously, and we've got a playground 10:36:41 we're putting in there. And it 10:36:43 leads right into the boys and girls 10:36:45 club space, we will be doing 10:36:47 an after school 10:36:49 program from the 10:36:51 Boys and Girls 10:36:53 Club, we will run for 10:36:56 school-aged children of the community. We 10:36:58 are a block away from the elementary school so 10:37:00 we're excited. This is one of a kind and 10:37:02 the first time we're doing this and 10:37:04 we're incredibly excited about the partnership there. 10:37:12 >> This Central City 10:37:15 Concern, the 10:37:30 boys and girls club, I sit on the 10:37:32 board for the Portland area and just 10:37:34 hearing about some of the challenges they have 10:37:36 to keep their large 10:37:39 clubs going, this is a 10:37:41 solution to help them reach a demographic that 10:37:43 is very commensurate to who they're 10:37:45 serving in the community. 10:37:59 We thoughts this would be a great way to assist 10:38:01 the residents who struggle with 10:38:03 after school care by 10:38:05 co-locating it. Like Ryan said, 10:38:07 what is nice, there is an elementary 10:38:09 school, they can walk to grocery, there is 10:38:11 rapid transit on 10:38:13 this Division Street corridor. 10:38:15 All kinds of 10:38:18 stuff on 10:38:21 122nd and Division that is walking 10:38:23 distance, so we're thrilled about the location and 10:38:25 amenities we're able to 10:38:27 provide for residents. I wanted 10:38:29 to give a shout out because one 10:38:31 of the most notable things about the 10:38:34 community, besides the fact it is looking really 10:38:36 good. >> Right. Thanks, 10:38:38 Steph. Development progress so we are 10:38:40 currently in for our building 10:38:43 permit. We submitted in 10:38:45 May. We're anticipating the first 10:38:47 comments in a week or a 10:38:49 week and a half, and we're scheduled to 10:38:51 close right now on late 10:38:53 October, 2020, so right around the corner. 10:38:55 We're going out to bid with our general 10:38:58 contractor just at the end 10:39:00 of this moment. And, then, project 10:39:02 highlights. Obviously, 100% 10:39:05 affordable family development with support 10:39:08 of 10:39:10 services 10:39:14 provided by Central City Concerns 10:39:16 and the case management 10:39:19 for the PHB units. Boys & Girls 10:39:22 Club will administer the after 10:39:23 school programs and 10:39:26 involved with programs, 10:39:28 education and outreach, as 10:39:30 well with IRCO. 10:39:32 Milestones, going out to bid, getting pricing in 10:39:35 July. We have our debt and equity 10:39:37 partners selected, closing calls 10:39:39 and things are rapidly 10:39:42 approaching a fall close. We're anticipating about 10:39:45 an 18-month 10:39:48 construction period so hoping to open our doors 10:39:50 and start leasing up in 10:39:53 April 2022. Next slide, please. In 10:39:56 terms of 10:39:59 DMWSB 10:40:02 updates 10:40:12 , we're anticipating 10:40:14 35%. They are really assist with 10:40:16 helping subcontractors get on 10:40:18 board and developing a wide network 10:40:20 of minority contractors. So 10:40:22 we're excited about that. I think we're going 10:40:25 to hopefully blow the goal out 10:40:27 of the water. 10:40:29 On the soft cost, as 10:40:31 well, 20% aspirational 10:40:33 goal. We're closer to 35, 10:40:35 40% on the project soft 10:40:37 cost, as well. Again, 10:40:39 we've got great relationships with 10:40:42 folks and our lead architect and many of 10:40:44 our subs are going to be falling into 10:40:46 that category, so real excited about 10:40:48 blowing that goal out of the water, as 10:40:51 well. Next slide, 10:40:55 please. So 10:40:57 issues and challenges. There is a little 10:40:59 bit of uncertainty with 10:41:02 BDS permit review time 10:41:04 frame, given the fer 10:41:07 lows and covid, working remote, 10:41:09 but people there have been fantastic, really 10:41:12 prioritizing these projects. We just recently 10:41:15 closed our 10:41:17 Cedar Commons project, and the 10:41:20 reviewers made it through, we got the 10:41:22 permit in time. I think it's incredible 10:41:24 the amount of work they're doing 10:41:26 given these uncertain times. We feel like we 10:41:28 can overcome that one, it is a little bit 10:41:30 of uncertainty. I think the covid 10:41:32 environment in general impacts on 10:41:34 construction, time frame, things 10:41:37 like that, we are doing some things 10:41:39 to help mitigate that in terms of, 10:41:41 you know, negotiating additional 10:41:43 time frames and grace periods, our 10:41:45 equity investors, 10:41:47 extensions on loan terms, 10:41:49 negotiating additional 10:41:52 things and perhaps the agreements 10:41:54 like larger allowances 10:41:56 for stored materials and things 10:41:58 like that to 10:42:00 help mitigate that. >> Can I 10:42:02 add a couple things, with 10:42:05 respect to BDS 10:42:07 permitting, you know, Ryan has been 10:42:09 doing a good work working with the 10:42:11 city to kind of track and 10:42:14 benchmark the progress to make sure we're 10:42:16 hitting, you know, during our plan 10:42:19 checks and everything, just to be 10:42:20 really mindful that we're 10:42:23 hitting our dates as we're going 10:42:25 along. So I think it is 10:42:27 just about more focus 10:42:29 project management to usher that through 10:42:31 and be very pro active, so I think 10:42:33 that's one thing. With respect 10:42:35 to just the covid environment and 10:42:38 construction, you know, I think, you know, 10:42:40 most folks know on this call and if 10:42:42 not, Walsh is one of, I 10:42:44 think, the strongest if not the 10:42:47 strongest contractor for 10:42:50 affordable 10:42:52 housing in the area and I think they've 10:42:54 done a great job about 10:42:56 their responsiveness around covid 10:42:58 and logistics and having a good work 10:43:01 plan. We've got kind of this ability of 10:43:03 seeing ahead of the future by 10:43:05 our Cedar 10:43:07 Commons, aka small 10:43:09 division, that just recently closed and work through 10:43:11 some of those 10:43:13 logistics. So we're giving the opportunity for 10:43:15 this project to do best 10:43:17 practices, lessoned learned 10:43:20 and be even more pro active 10:43:22 than on small division. All of 10:43:24 those bode well to mitigate 10:43:26 tie types of 10:43:29 covid-related riskses we're seeing out there. It 10:43:31 is two part. pro active 10:43:33 planning, project management and then the third 10:43:35 is what Ryan alluded to is 10:43:37 making sure, on our investor 10:43:39 and debt that we are putting 10:43:42 into place some cushion in the eventer 10:43:45 that there are delays. You 10:43:47 plan life and life plans you a little, 10:43:49 so we're trying to head 10:43:51 it off on all three 10:43:54 arenas, so I want to share that the way 10:43:56 we've been pursuing this. >> 10:43:58 Thanks, Steph. Next slide, 10:44:02 please. So in terms of 10:44:04 community engagement, we've 10:44:06 been pretty active here. We reached 10:44:09 out to multiple neighborhood associations in the 10:44:11 east Portland area. We've done 10:44:13 a 10:44:15 presentation to 10:44:17 East Portland Action 10:44:19 Plan and had great response and a lot of support 10:44:21 from those folks in the neighborhood 10:44:23 associations. We did host an out reach 10:44:25 meeting which we encouraged 10:44:28 community feedback on design and we had 10:44:30 a pretty good turnout for that. And 10:44:32 again, had nothing but positive response from 10:44:35 community members, 10:44:36 people excited, people ready to 10:44:38 refer friends and family. I 10:44:41 can people are going to see this is going to 10:44:43 be a great asset to the local 10:44:45 community. You know, we've posted 10:44:47 a development notice site, 10:44:49 on site. We've already gotten 10:44:51 calls and most have been like 10:44:53 perspective folks wanting to lease 10:44:56 an apartment. So people are already 10:44:58 gearing up for 10:45:00 that. And that's been probably the 10:45:02 highlights of our community 10:45:05 engagement. Next slide, please. >> 10:45:07 And then we've also 10:45:09 had discussions 10:45:11 and spoken with the division midway 10:45:14 group that 10:45:16 is out 10:45:18 there 10:45:21 and we will work with the David 10:45:23 Douglas School District. We have 10:45:25 former projects we worked on 10:45:27 arm and the local Boys & Girls 10:45:30 Club on Rockwood 10:45:32 and 185th and Stark, a conversation 10:45:34 with them because they're also 10:45:36 in this field so casting a wide net out 10:45:38 there and letting folks 10:45:40 know. >> Right. Great. 10:45:42 Thank you. We would like to open it 10:45:44 up for any 10:45:47 questions that anybody 10:45:50 has. 10:45:58 >> We also have 10:46:00 Mary on with Central City 10:46:02 Concern. I don't know if you wanted to add any 10:46:04 comments about the partnership or, 10:46:07 you 10:46:09 know, your contribution 10:46:11 to our project. It might be nice 10:46:13 to hear a couple words from 10:46:15 you. You always say great things. >> 10:46:18 Hi. Can you all see me and 10:46:22 hear 10:46:24 me? >> 10:46:26 If at a minimum you can hear 10:46:28 me, that is 10:46:31 success. Thanks, 10:46:33 Stef, for opening it up for a minute. We are 10:46:36 incredibly excited to be partnering 10:46:38 once again with Related 10:46:40 Northwest. As was mentioned, this project 10:46:42 is directly next door to our 10:46:44 Cedar Commons project, 10:46:46 which just broke down, so we're really 10:46:48 building up this community out 10:46:51 on 115th, and really looking forward 10:46:53 to how this is going to 10:46:56 bring increased amenities 10:46:58 and services and most importantly 10:47:00 affordable housing to that part of 10:47:03 East Portland. So just a 10:47:05 few points on 10:47:07 CCC's role in the project. We are a 10:47:11 co-developer, and 10:47:14 our primary role beyond that is the services 10:47:16 provision for the project. 10:47:18 So we have a full-time resident 10:47:20 services coordinator that will be 10:47:22 providing overall resident services for 10:47:24 all of the units, 10:47:27 all 138 units, so that will be, 10:47:29 you know, community 10:47:31 events, resource 10:47:33 and referral, eviction 10:47:36 prevention, employ assistance, making 10:47:38 sure folks are connected to health 10:47:40 care. All of the 10:47:43 core stabilization services that are so 10:47:45 essential and that 10:47:48 CC has, our 40 years of 10:47:50 experience 6 providing. In addition to 10:47:52 that, we have 10:47:55 a .8FTE for the seven permanent supportive 10:47:57 housing units so that position will be 10:47:59 providing the more 10:48:02 intensive, really daily case 10:48:04 management to those households and 10:48:10 families 10:48:14 to receive all the wrap around 10:48:16 support to be successful in their community 10:48:18 with that, happy to answer 10:48:20 any questions related to 10:48:22 services, and thank you very much. >> 10:48:24 Thanks, Mary-Rain. 10:48:28 >> Dr. Holt, I had a question for 10:48:31 the 10:48:33 project 10:48:35 team this 10:48:37 is Allan 10:48:42 Lazo from the weak oversight 10:48:45 Committee. I think the 10:48:48 matrix doesn't list everybody you've listed there in 10:48:50 the engagement you're doing. 10:48:52 I'm curious, 10:48:54 Stef, if there is a formal 10:48:56 joint venture with 10:48:58 IRCO and Boys & Girls Club 10:49:00 where they are actually equity Barter ins in the 10:49:02 project? 10:49:05 >> No, 10:49:07 so Central City Concern our non-profit 10:49:10 partner in the deal, so there is 10:49:12 an equity piece for them. Boys & Girls 10:49:14 Club, we are covering all of the 10:49:16 expense of having the staff there and 10:49:18 covering, you know, we don't charge 10:49:21 any rent and we don't charge the 10:49:23 residents any fees, and we cover for 10:49:25 their staffing. But there's not 10:49:27 -- there's not an 10:49:29 ownership, we'll say. They're not really 10:49:32 set up for that. 10:49:34 And, then, with to the IRCO, 10:49:36 no. We have them, we will be giving 10:49:39 them a stipend for outreach. 10:49:41 And, then, as the 10:49:43 PSH kind of forms, because it will be 10:49:45 through coordinated access that's 10:49:47 when we're going to try to connect them 10:49:49 with services. We had a 10:49:51 great, long conversation with them 10:49:53 and Central City Concern 10:49:56 recently to kind of start firming up 10:49:58 and developing what that service 10:50:00 model is. 10:50:02 And, they're really 10:50:05 excited 246789 actually was, this community is 10:50:08 a response to a community 10:50:10 engagement meeting that I did years ago 10:50:12 out there. I think Shannon was out there at 10:50:14 the time. I was so impressed with 10:50:17 IRCO and they did a great job of 10:50:19 expressing the needs of the 10:50:21 residents out in that community, that 10:50:23 this project was born from that. It is neat 10:50:26 to say look how far we've been able to 10:50:28 take it. We learned. A big 10:50:30 thing is we want large bedroom 10:50:32 units, so we're doing a lot of three 10:50:35 bedrooms. More aMP3ity 10:50:37 space, after school care is a huge problem. 10:50:40 Here are all the things we heard you 10:50:42 say. Is that what it looks like? 10:50:44 They're, like, yeah. So they're excited 10:50:46 dob a part of 10:50:49 it. >> Thank 10:50:51 you 10:50:53 . I thought it was 10:50:55 curious, it would be neat if they had 10:50:57 equity states. >> Yeah, yeah. 10:51:01 Any other questions? 10:51:04 >> Any other questions 10:51:06 from the 10:51:09 Oversight Committee. 10:51:12 Anneliese, you've said nothing today. 10:51:14 We haven't be heard your voice. >> I'm 10:51:16 good. This is a wonderful 10:51:19 presentation. I appreciate hearing 10:51:21 from both of you. It is really great to see 10:51:23 the projects we saw on paper 10:51:25 and concept starting to really hit 10:51:27 the ground running, so that's wonderful 10:51:29 to see, and thank you. >> 10:51:32 Thank you very much, anneliese. 10:51:35 Susan. >> It was a 10:51:37 very thorough presentation. I had 10:51:39 questions along the way that were 10:51:41 answered, so, yeah, good 10:51:43 job. I think it is exciting 10:51:45 and I love the fact that you're developing 10:51:48 something that is so needed and that you've known 10:51:51 that, the history. It was interesting to hear 10:51:53 the history behind it. >> 10:51:56 Thank you very 10:51:58 much. >> 10:52:00 Thank you. >> I would weigh in 10:52:02 and say for both groups what is 10:52:04 important at this moment as 10:52:07 highlighted in the report as so many 10:52:08 consultants and smaller contractors 10:52:11 being impacted by covid, I 10:52:14 appreciated hear the commitment 10:52:17 around 10:52:19 equity and the commitment to the 10:52:21 numbers. That is extremely important and 10:52:24 valuable in this 10:52:26 time so commend you for that. 10:52:28 Director Callahan, is 10:52:30 there anything you wanted to say? >> 10:52:32 I was going to say to the 10:52:34 bond oversight committee, the network she 10:52:36 was talking about to create the 10:52:38 partnership with 10:52:40 IRRCO was your meeting. Ing the 10:52:43 community engagement meeting we had back two years 10:52:45 ago before we started 10:52:47 the bond solicitation 10:52:49 process, not quite two years ago, where 10:52:51 we brought community together to the table and 10:52:53 talked about what people were wanting to 10:52:55 see and what kind of partnerships we wanted 10:52:57 to create. It was actually at one 10:52:59 of 10:53:01 those 10:53:03 tables that staff was able 10:53:05 to connect with the folks from 10:53:08 IRCO and create that partnership. I wanted 10:53:10 to put a little shout out to you for 10:53:12 the community meetings you were able to 10:53:14 hold, and I look forward to the day when we are able 10:53:16 to do an in-person 10:53:18 meeting with community partners. 10:53:20 But I think it also makes me 10:53:23 think that we should -- we're going to 10:53:25 be in this space for 10:53:27 a while and so I will work with our 10:53:29 team to see if there is a way we can figure 10:53:31 out how to do a more virtual 10:53:34 meeting of this type to see if we 10:53:36 can keep that kind of engagement 10:53:38 going with the bond 10:53:40 oversight committee. I can these peps you're 10:53:42 helping foster and create 10:53:44 through your work are make, 10:53:47 obviously, a real meaningful difference 10:53:49 in how these buildings are going to operate 10:53:51 for the people and community members who get to 10:53:53 live in them. I just wanted to 10:53:55 appreciate you for that meeting. Thank you. 10:53:57 >> Thank you. We 10:53:59 do have space for public testimony. 10:54:02 I did not see 10:54:04 any people signed 10:54:06 up for 10:54:09 such. 10:54:13 Stacey, did we have anyone sign up for public 10:54:16 testimony? >> No, we did not. >> 10:54:18 Okay. Thank you so much for everyone being with us. I 10:54:20 think, at this point, we will begin our wrap 10:54:23 up. Our next meeting is 10:54:25 scheduled for October, and I look 10:54:27 forward to the continued great 10:54:29 work. You have it right 10:54:32 there. It is 10:54:35 October 1 where we will be 10:54:38 gathered in this 10:54:40 Zoom platform kind of context. I guess, by 10:54:43 then, some of us will be 10:54:45 pretty proficient at it. Again, I 10:54:48 apologize. Technical difficulties this 10:54:50 morning. Technology is great when it 10:54:53 works. And for whatever reason, I could not 10:54:55 get the 10:54:57 iPad to participate so here we are, we were 10:55:00 able to manage it. Until 10:55:02 we meet again, I appreciate your 10:55:05 work. Take care of 10:55:07 yourselves. Everybody stay safe. All right, 10:55:09 bye-bye. >> Thanks. >> Thank you.