2020-07-16 BOC Meeting (closed caption)

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.

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.

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.

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.

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.

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.

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.

09:48:06 the Matrix dashboard,

09:48:08 which is super helpful, also.

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?

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.

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.

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

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.

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.

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.

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.

10:06:46 we've been working with our different

10:06:48 developer partners on getting

10:06:50 also their different sources

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.

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.

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.

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.

10:23:44 slide, please.

Leah, this is

10:23:46 Leah's slide to talk about.

10:23:50 >> Sure.

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,

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.

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.

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.

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.

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

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.

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.

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,

10:40:51 well.

Next slide,

10:40:55 please.

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

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.

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

10:44:38 refer friends and family.

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.

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.

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.