09:34:39 Welcome to today's Bond Oversight Committee. 09:34:42 I am Steven Holt and I am the facilitator of our 09:34:47 work. It is the 4th of February, 2021, if 09:34:48 you can believe it. 09:34:51 Good for us to be together. We haven't been together in a little 09:34:55 bit. I am going to open our meeting and I 09:34:57 am going to do a brief roll call. 09:35:00 Before I do that, though, it's Black History 09:35:03 Month. And it is a month where we recognize 09:35:08 contributions of the African-Americans to this 09:35:09 nation. And actually internationally. 09:35:15 What I've been doing is sharing quotes in 09:35:17 meetings, opening it with a quote and closing with 09:35:20 a quote. So if it's OK with you I will do 09:35:25 that. From Rosa Parks, she is attributed to 09:35:29 having said "You must never be fearful about what 09:35:31 you are doing when it is right." 09:35:36 How appropriate, how fitting for the work that 09:35:40 we're engaged in. Let's do a real quick roll call and we 09:35:41 will get going. 09:35:43 This is a meeting that's open to the public. 09:35:49 It is not a public meeting. That means that you are excited into 09:35:58 to hear and listen to the work that the Bond 09:36:01 Oversight -- housing funds -- sorry about that, you 09:36:05 are invited to hear the work and watch and engage 09:36:05 with the work. 09:36:13 associated with the meeting that's happening 09:36:14 would like to weigh in, we ask you to keep it If there are testimonies or comments that you 09:36:16 today. However, if there are other things you 09:36:16 are concerned about or questions you have 09:36:19 related to housing, you are more than encouraged 09:36:22 to reach out to Portland Housing Bureau. 09:36:24 Members. Members of the Portland Housing Bureau 09:36:27 if you would identify yourself by merely 09:36:27 waving at the camera. 09:36:39 Thank you. We will do our roll call. 09:36:47 Susan Emmons. >> Bond Oversight Committee member 09:36:50 here. >> Good morning. 09:36:53 I'm Allan Las Vegas so from the fair housing 09:36:57 council of Oregon and I like Dr. Holt also would 09:36:59 like to recognize the contributions of Black and 09:37:01 African-Americans in the history that we hold at 09:37:03 the fair housing council of Oregon and the work 09:37:06 that Dr. King was doing in open housing movement 09:37:11 in Chicago that really led to the work of fair 09:37:12 housing following his assassination in 1968. 09:37:18 Thank you so much. >> Holt: Thank you, sir. 09:37:20 Anna lease? >> Good morning, everyone. 09:37:27 Anna Lisa, Portland Housing Bond oversight 09:37:29 committee member. >> Holt: Did I miss any Bond 09:37:30 Oversight? >> Good morning, everyone. 09:37:34 My name is -- hi. It's been a little while. 09:37:41 I use he/him pronouns. I am from APANO and I am on the 09:37:41 oversight committee. 09:37:46 >> Holt: Todd, I was looking for your lovely face 09:37:49 and did not catch the snow scene there. 09:37:55 Welcome. Director Callahan, I believing you 09:37:58 wanted to share some thoughts. 09:38:01 >> Callahan: Good morning. I wanted to welcome everyone to the 09:38:05 meeting. I also wanted to make sure that the 09:38:10 Bond Oversight Committee members were aware that our 09:38:15 new liaison from commissioner Ryan's office, as of 09:38:18 the beginning of the year, we are within 09:38:22 the portfolio of Commissioner Dan Ryan and his 09:38:28 liaison to the Housing Bureau is Charity and is 09:38:32 joining us. Ied to make sure everyone know who she 09:38:33 was. I don't know if you want to introduce 09:38:36 yourself. I know I'm putting you on the spot but 09:38:38 I thought I would give you a chance to say 09:38:41 anything to add to my intro. 09:38:47 >> Thank you, Dr. Callahan. I am charity. 09:38:52 Like I said I am the liaison to the Housing 09:38:55 Bureau. I am a senior policy adviser for 09:38:56 Commissioner Dan Ryan. 09:38:58 I am super excited about your work, actually. 09:39:06 This is a dream portfolio. And nice to see you, Jennifer. 09:39:08 Some familiar faces. Love that. 09:39:14 So just really wanting to be a sponge and excited 09:39:14 to be here. So thank you. 09:39:21 >> Callahan: And I just also wanted to I think 09:39:25 today is a day that has a lot of really good 09:39:29 information for you to dig into, some great 09:39:31 presentations, and even since the last time we 09:39:35 met, just a quarter ago, we have moved four 09:39:39 projects as the team has moved four projects into 09:39:42 financial close. Which means they are either under 09:39:44 construction or about to be under construction. 09:39:46 And you will hear more about that this morning. 09:39:50 But I wanted to specifically acknowledge before we 09:39:55 kick it off the very, very hard working team that 09:39:59 has been part of keeping this engine moving 09:40:01 forward even while a pandemic, which has made 09:40:03 things more challenging in all of our partners who 09:40:05 have done all of the work to keep things on time. 09:40:08 We weren't sure where we were going to be in 09:40:10 March. I think you remember when we first 09:40:13 talked in April about where we were in the pandemic, 09:40:17 and I think it's really something to be proud of 09:40:21 and acknowledge in the moment of times of 09:40:24 so much -- so many things that may not look so 09:40:26 bright. And so it just means all of these 09:40:30 units will be available in the coming years, and 09:40:32 we're just very excited about that. 09:40:36 And I just wanted to also thank you for your 09:40:40 oversight of the work, and there's also some good 09:40:45 financial news coming up. Which is also something that, I know 09:40:47 Allan, I saw you perk up there, Allan. 09:40:54 That we also had not anticipated. And so I wanted to thank our finance 09:40:57 and development team for keeping such a 09:41:01 close eye on the financial resources. 09:41:03 And that's all I wanted to say this morning. 09:41:07 And so hopefully we will get to talk about the 09:41:09 great work that's going on and be able to answer 09:41:14 any of the questions you might have. >> Holt: Thanks, Director. 09:41:17 Appreciate that so very much. We have gone through roll call and we 09:41:19 are about to launch. 09:41:22 Let me just ask, and encourage, so many of us live 09:41:25 in this Zoom space now, to make sure if there's 09:41:27 anything going on in the background and you are 09:41:30 not sharing you are talking, that you keep your 09:41:32 background muted. Not that you have to stay on mute. 09:41:36 But just to control any noise that might compete 09:41:43 with the meeting. So in light of that, let us go into 09:41:43 our first agenda item. 09:41:50 >> Before we get there, we do have some meeting 09:41:52 notes from October that we want to make sure that 09:41:57 the BOC reviews and gets approved. >> Holt: Oh, yes, absolutely. 09:42:14 Thank you. >> I read the notes and they looked 09:42:15 thorough to me and I move we accept them. 09:42:19 >> I will second that. >> Moved and seconded. 09:42:23 If everybody is in agreement, just merely give -- 09:42:27 I will call you by name and have you say yes or 09:42:28 aye. So Susan. 09:42:33 >> Yes. >> Holt: Allan. 09:42:38 >> Aye. >> Holt: Anna least. 09:42:39 >> Aye. >> Holt: Todd. 09:42:42 >> I will abstain since I was not present. 09:42:43 >> Holt: OK. It's been moved. 09:42:53 Itis been supported. It is a consensus to move the minutes 09:42:55 forward. Thanks for that, Tanya. 09:43:03 >> Wolfersperger: No problem. >> Holt: Moving we will go into our 09:43:03 first item agenda. 09:43:11 Jill. >> JILL: Thank you, Dr. Holt. 09:43:17 Jill Chen, housing investment and portfolio 09:43:18 preservation manager. Next slide, please, Tanya. 09:43:24 I will cover a quick overview of where we are as 09:43:28 Shannon mentioned, we've had some great progress 09:43:36 in all of the projects, actually. In the -- since our last meeting in 09:43:41 October, we have had two projects close. 09:43:47 This is Cathedral Village and 159th and Division. 09:43:52 It closed last month, January 31 and the other on 09:43:55 October 29th, 2020. That one is I am hoping will be ready 09:43:58 and opening by the end of this calendar year. 09:44:04 And I wanted to say a great shout out for the 09:44:07 team. We had a lot of staffing changes. 09:44:10 And that was tremendous for them to have closed 09:44:12 the projects during a pandemic and being on 09:44:16 boarded at the same time. So I wanted to shout out for the 09:44:18 team. Especially the closers and the 09:44:24 underwriters. And you will note that you have a copy 09:44:24 of the dashboard. 09:44:28 This is sort of the one-page, big-page item. 09:44:32 And it's in red. And a few things I want to highlight, 09:44:35 which is, in addition to the closings we've had, 09:44:38 all of the items in red are the new updates. 09:44:42 And we are very pleased for a few items. 09:44:49 The first one is our 30% AMI, area median income 09:44:52 targets. Was increased to 628 units. 09:44:57 We are still exceed every one of our targets 09:44:59 metrics. Let me just go down where we are on 09:45:00 target metrics. 09:45:05 The goal was for 1,300 units to be produced. 09:45:10 Currently we are on target to produce 1,490 09:45:19 units. On the 30% area median income our 09:45:22 target was 600 and we are at 628 units. 09:45:30 Our goal for 300 permanent supportive housing 09:45:33 units that's still at 313. We are still on target and exceeding. 09:45:37 And our goal for family size units at 650 has been 09:45:38 increased to 691. So slight increase. 09:45:41 So you will see that there were some slight 09:45:47 differences that are shown in red. Any questions or should I just 09:45:47 continue going down? 09:46:00 Next slide, please. As mentioned earlier, we had two new 09:46:03 closings and that was Cathedral Village and 09:46:06 Crescent Court at 115th and Division. 09:46:11 We have over the next three months, we will have 09:46:18 another four closings. Hayu Tilixam, that is a project 09:46:22 approved by city council in January and sponsored by 09:46:23 CDP and anyway I can't. 09:46:31 -- anyway I can't. And Las Adelitas, which otherwise 09:46:35 approved in December by city council and that is 09:46:36 scheduled to close March 11th. 09:46:38 Hayu Tilixam is actually I believe on the phone 09:46:41 today and they will be making a short presentation 09:46:45 for everyone. It's great to see so much movement as 09:46:48 we come towards all the great work you've done 09:46:49 with us in moving these projects forward. 09:47:00 Next slide, please. Coming up after the immediate sort of 09:47:03 Hayu Tilixam and Las Adelitas clotting we will have 09:47:06 Stark Street and the Susan Emmons. 09:47:10 And also we forgot to put another one on there, 09:47:15 the Westwind. So all three, Stark Street, Susan 09:47:19 Emmons and Westwind are targeted to go to city 09:47:21 council on March 17th. 09:47:23 They will be closing in quick succession. 09:47:30 Was Westwind on April 15th, Stark Street we 09:47:34 think is early May, and Susan Emmons towards the 09:47:37 end of April. So it's going to be a quick closing. 09:47:40 So we are going to be very pleased to come back in 09:47:42 next quarter and tell you all the great closings 09:47:44 and have more projects for presentation. 09:47:49 After that, all those closings, then we will have 09:47:54 sort of a lull until this summer. Where there will be the rest of the 09:47:57 projects will be starting to come to city council 09:48:04 and close. That will be 30,000 Powell, and the 09:48:09 Joyce hotel. As Shannon mentioned we have had some 09:48:12 new, I think great news. 09:48:16 Despite COVID, during the CARES Act that was 09:48:20 passed in December 2020, Congress fixed the 09:48:24 low-income housing tax credits applicable rate at 09:48:27 4% fixed. It had been drifting down towards 09:48:28 about 3.7 or so. 09:48:35 So the impact on this had been I think a boon to 09:48:38 our projects. Because that meant the low-income 09:48:40 housing tax credits which we had mentioned we were 09:48:44 concerned about because of pricing issues, 09:48:47 actually became more solidified. 09:48:51 And they were able to generate more low-income 09:48:54 housing tax credits, and our LIHTC investors are 09:48:57 honoring the commitments in their letters of 09:49:03 intent. So we saw, for example, was in 09:49:05 cathedral value Elijah. 09:49:09 PHB got returned $1.5 million. In that big spreadsheet, the 09:49:14 dashboard, you will see a note saying the red, where it 09:49:16 showed we needed less than $15 million. 09:49:19 So, Allan, I see you smiling. So that's great. 09:49:26 It's nice to see that we are able to leverage our 09:49:31 bond dollars even more because of the situation 09:49:34 that occurred, thanks to Congress. Rarely say thanks to Congress. 09:49:39 And so we are looking at being able to potentially 09:49:44 get some more bond funds back. But before we get bond funds back 09:49:50 we're looking at how PHB and our partners can improve 09:49:52 the durability and sustainability on all 09:49:54 of these projects. 09:49:57 For 99 years we want these to be solid projects. 09:50:00 And I know a number of our projects had to do a 09:50:05 lot of value engineering. The second that we're looking at is 09:50:08 stabilizing the projects with additional reserves, 09:50:11 be it operating reserves or maintenance 09:50:14 reserves, because again, for the durability and 09:50:16 sustainability and the operations of it in the 09:50:20 long-term. And what we are also seeing is on some 09:50:25 of the projects, our developers have asked 09:50:31 for actually less rent from the tenants than the 09:50:32 60% area median income. 09:50:36 They are coming in and saying we may not want to 09:50:41 rent at 50% but we really like to be able to offer 09:50:42 that especially in this current environment. 09:50:45 So when we look at the numbers and say, well, do 09:50:47 we want some more money back or do we want a 09:50:51 little bit deeper reach, that is, again, a 09:50:54 judgment call. But we are trusting that as we reach 09:50:57 out to the BIPOC community and those in need, 09:50:59 some of them really would like to be able to reach 09:51:02 the 50% AMI residents. 09:51:06 And the last was what happened at Cathedral 09:51:07 Village. We got some money back. 09:51:11 So under those four circumstances we are sort of 09:51:16 weighing how to best use the boon we got from 09:51:19 Congress with LIHTC. What are some other things we are 09:51:24 seeing in the market right now is that costs have 09:51:25 continued to increase, unfortunately. 09:51:33 In particular the situation since last year with 09:51:35 cost of construction hasn't really abated. 09:51:39 It's still increasing. One the things we have seen that's 09:51:41 sort of sky rocketed is insurance. 09:51:44 Insurance costs have tripled in some places on a 09:51:47 project we recently closed. That was not in the bonds. 09:51:53 What we also are seeing is that because there is a 09:51:56 lot of affordable housing projects from throughout 09:52:00 the state, and the other jurisdictions as well as 09:52:03 PHB, that the Oregon housing and community 09:52:09 services have become very back logged. Most recently, for example, on the 09:52:17 Joyce hotel, Joyce went to the OHCS anded to for a 09:52:20 time which the bonds could be issued. 09:52:25 So OHCS. And they said, well, they're looking 09:52:27 at October of 2021. 09:52:29 And this was done at the end of last year. 09:52:32 So the timing has become stretched out. 09:52:35 And we are getting a little, how to describe it, 09:52:39 trying to figure out how we can best manage the 09:52:42 work without with our development partners so it 09:52:44 doesn't impact their development time line. 09:52:48 Any questions before I pass off to my colleague 09:52:53 Mike Johnson? OK. 09:52:57 That's it for my presentation. Thank you all so much. 09:52:58 >> Holt: Thank you, Jill. Mike? 09:53:09 >> MIKE: Good morning. Go to the next slide there. 09:53:12 Thank you, Tanya. Actually do have some changes both in 09:53:14 the slide and the report this quarter. 09:53:20 You will notice that we now for the first time in 09:53:23 several months have a new bond project expense 09:53:29 showing up in the top table. And it's showing the initial bond 09:53:31 proceed disbursements for the Crescent Court 09:53:36 project. So that of course also starts 09:53:40 adjusting on the commitment side how much money is in 09:53:41 the Crescent Court project also. 09:53:43 So you will see that that number has gone down 09:53:47 from last time. So things are starting to move. 09:53:50 So if you look at the graph that's on the screen 09:53:55 in front of you right now, you will notice that 09:53:59 we've now gone up over 21% of the bond proceeds 09:54:02 having been spent now that we're work on our first 09:54:09 gap financing project. And by association, the commitmented 09:54:10 amounts have gone down. 09:54:13 Of course, if we do, as we do other bond 09:54:14 solicitations, that number will change. 09:54:18 That number is also going to change based on the 09:54:22 information that Jill just shared with you, which 09:54:24 will possibly adjust the reserved amount and 09:54:28 remaining amounts also. So there's a lot starting to move 09:54:30 now. Another amount I want to draw your 09:54:33 attention to is the interest and credits. 09:54:36 As I've been telling you for several months now as 09:54:39 we've got bonds, the bonds sold and the proceeds 09:54:43 are sitting in debt managed cash with the City's 09:54:46 treasury division, that number is growing. 09:54:50 That declared amount is starting to approach $1 09:54:52 million now. That's also going to be for future 09:55:00 projects. Again, more news on how the funds are 09:55:01 starting to move out to the projects. 09:55:10 Happy to answer any questions. >> Holt: Great. 09:55:15 Thanks, Mike. >> Dr. Holt? 09:55:17 >> Holt: The Bond Oversight Committee, questions. 09:55:22 >> Dr. Holt? This is Allan. 09:55:27 I was going to just make a couple comments about 09:55:30 what Jill had said and also, pertains to Mike 09:55:32 also. So really appreciate the work that you 09:55:34 all are doing. 09:55:37 I would agree with some of the statements you may, 09:55:40 Jill, about, I think it's fantastic that you saw 09:55:42 this stabilization of the LIHTC market. 09:55:50 question about construction costs, right? 09:55:50 But it's also offset by this whole continued That's a big deal for what we were facing. 09:55:53 So I think we need to be cautious moving forward. 09:55:55 I will also support what you said about 09:55:58 reinvesting in both going deeper on the 09:56:02 affordability as well as the sustainability and 09:56:10 quality in the units. That's what I would say about those 09:56:10 efficiencies that we're seeing. 09:56:14 Because we also, as Mike said when we look at what 09:56:18 we still have in financials, we're still not, we 09:56:22 still got the reserves there. And then there's still the remaining 09:56:26 bond funds. So I think to me it seems like we 09:56:30 remain in a pretty good position, given what we 09:56:33 could have been facing with some of these things 09:56:35 that were so unknown. 09:56:38 So I continue to keep my fingers crossed in lots 09:56:41 of different ways but that sounds positive. 09:56:44 So I think it's great that you all are thinking 09:56:46 about, is there ways that we might be able to make 09:56:50 these projects more robust for the folks that 09:56:57 we're serving? Given that things are at least stable 09:56:59 for the moment, is kind of the way I would 09:57:02 frame it. Not really questions, I guess. 09:57:04 Comments. So thanks. 09:57:07 >> Holt: Thank you, Allan. Either comments or questions. 09:57:13 All right. Thanks, Jill, thanks, Mike. 09:57:21 Appreciate it. Have a great rest of the day unless 09:57:24 you are going to stay with us in this robust and 09:57:24 essential meeting. 09:57:27 Love to have you. Project updates. 09:57:31 Project teams. I don't know who's taking the lead. 09:57:36 I have no name. >> We will go ahead and share this 09:57:37 next part, Dr. Hospital. 09:57:43 So good morning, everyone. Jennifer Chen with the Portland 09:57:45 Housing Bureau, she/her pronouns. 09:57:47 It's great to see the committee members this 09:57:50 morning. I just wanted to share, on behalf of 09:57:54 the team, a very brief update on how the bureau is 09:57:57 continuing to coordinate with our jurisdictional 09:58:02 partners and community partners to make sure that 09:58:05 the Portland bond funds continue -- or will be 09:58:07 aligned and continue to be aligned with upcoming 09:58:12 new resources from the Metro supportive housing 09:58:14 services measure funds. 09:58:20 Or the SHS measure. So as many of you are aware, that the 09:58:24 SHS measure was passed by Portland region voters 09:58:25 in 2020, just last year. 09:58:31 And as projected to generate as much as $248 09:58:35 million a year across the Tri-County region once 09:58:40 it's fully implemented. Our current projections is that 09:58:43 Multnomah County's estimated to receive $52 million in 09:58:47 the first year of operation, which will be next 09:58:50 fiscal year. So starting in this upcoming July. 09:58:57 And then after that, approximately $100 million a 09:59:00 year, once it's fully implemented. And the Joint Office of Homeless 09:59:05 Services, the city-County Joint Office of Homeless 09:59:07 Services is the entity that will be administering 09:59:10 the funds on behalf of the Multnomah County 09:59:15 region. And the funds are really focused on 09:59:17 reducing chronic and short-term homelessness 09:59:19 and racial disparities. 09:59:22 There's a variety of types of services that these 09:59:27 funds can be used for, including supportive 09:59:31 housing, rent assistance, supportive services and 09:59:32 also shelter or street outreach services. 09:59:38 But there is a definite high priority of 75% of 09:59:42 the funds to be really focused on serving 09:59:45 households who are experiencing chronic homeless 09:59:49 like long-term homelessness and have living with a 09:59:53 disabling condition. And very low income. 10:00:02 So 30% area median income and below. And the remaining 25% of the funds can 10:00:06 be spent in serving kind of more broadly the 10:00:08 homeless population and many of the service 10:00:12 needs. So we just want the to give this 10:00:15 moment to give a brief update related to had measure. 10:00:17 Just that Portland Housing Bureau is continuing to 10:00:21 coordinate very closely with the joint office, 10:00:23 with Metro, Home Forward and our community 10:00:30 partners just to ensure that the SHS measure funds 10:00:33 will continue to be aligned in our production of 10:00:37 affordable housing and in particular our 10:00:41 supportive housing units. I am glad to take any questions if 10:00:41 people have some. 10:00:50 >> Holt: Any comments from the Bond Oversight 10:00:52 Committee? Thanks, Jennifer. 10:01:00 >> JENNIFER: I think I pass it on to Tanya. 10:01:07 >> Holt: Tanya. >> TANYA: Good morning, everyone. 10:01:11 I'm Tanya Wolfersperger. I use she/her pronouns and I am 10:01:13 housing coordinator here at the Housing 10:01:15 Bureau. And I just wanted to provide a brief 10:01:20 update to the oversight committee about our starting 10:01:24 to work on our annual progress report for 10:01:25 calendar year 2020. 10:01:29 So this is just to provide you a brief estimated 10:01:34 time line of when we anticipate finishing the 10:01:38 progress report, getting a draft for you all to 10:01:41 review, and then presenting that out to the 10:01:45 public, including hopefully sharing that with city 10:01:49 council later this spring. So it's just kind of a heads up that 10:01:54 we're working on it and to give you an opportunity 10:01:57 to kind of track our work in that regard and know 10:02:00 that we will be sending a draft your way 10:02:05 fairly soon. So I want to make sure there aren't 10:02:08 any questions or comments from the oversight 10:02:08 committee on this work. 10:02:27 You will be hearing from us soon. Stay tuned. 10:02:31 >> Holt: Thank you. Hope you can hear me. 10:02:35 >> Yes. >> Holt: Excellent. 10:02:38 Other updates? Project team updates. 10:02:45 >> Wolfersperger: I am happy to be able to welcome 10:02:48 two project teams to the versight Committee 10:02:52 meeting this quarter. We have project teams from both the 10:02:54 Hayu Tilixam project and the Westwind project. 10:03:01 So just want to be, everyone aware that each team 10:03:04 will do a presentation and then we will have a 10:03:07 short time after each presentation for questions 10:03:09 and discussion should you have any before we move 10:03:14 on to the next. So I just want to make you ashare that 10:03:16 is how we are going to proceed. 10:03:19 And then without further ado I would like to 10:03:23 welcome the team for Hayu Tilixam. I believe we have folks here from both 10:03:27 community development partners and from NAYA. 10:03:39 And I will hand it over to them. I will hand it over to them. 10:03:43 >> Hi, Lucy. I don't think we can hear you. 10:03:45 You are still on mute. >> Holt: I was just about to say 10:03:46 that. Thanks, Jill. 10:03:50 >> Can you all hear me now? >> Holt: Yes. 10:04:01 >> LUCY: Thank you for having us today to present 10:04:07 an update on Hayu Tilixam. My name is Lucy Corbett and I am a 10:04:09 development manager with community development 10:04:14 partners. I am joined by Keith, who is the 10:04:15 project manager with NAYA. 10:04:23 And we are very excited to provide an update on 10:04:26 this project. It is a joint development between our 10:04:30 two organizations. 10:04:35 And we are the co-developers and will be the both 10:04:43 long-term owners of the project. Hayu Tilixam translates into many 10:04:47 nations in the Chinook-Molalla language. 10:04:50 This project is located on Northeast pros caught 10:04:55 right near the intersection of press to the 10:04:57 and Cully boulevard in the Cully neighborhood. 10:05:02 It is in close proximity to NAYA and CDP's other 10:05:05 two joint developments in the Cully neighborhood 10:05:11 as well as close to NAYA's campus in Cully. 10:05:15 So it's great to have those proximities to be able 10:05:22 to share resources and have easy access to NAYA's 10:05:25 campus where they have a lot of additional 10:05:30 resources for residents in the way of programs, a 10:05:34 high school, and many other activities. 10:05:40 The project is focused on serving Native American 10:05:43 families and individuals and also includes nine 10:05:51 permanent supportive housing units. It is one of the sites that was 10:05:54 purchased by the Housing Bureau with the bonds. 10:06:03 It currently is single family home. And so we are adding 50 units here to 10:06:05 a pretty compact site. 10:06:10 But one that we believe is poised for higher 10:06:17 density in the future. It's also really well located in terms 10:06:21 of being highly accessible by public transit, 10:06:24 the Tri-Met bus line runs right down Prescott. 10:06:28 It's also right across the street from the 10:06:31 Albertsons grocery store. Our great amenity for our residents. 10:06:42 Advance to the next slide, please. Here's a quick snapshot of the unit 10:06:47 mix Heer. We have 20 family-sized communities in 10:06:49 our two and three-bedroom units. 10:06:55 As I mentioned nine permanent supportive housing 10:06:59 units which will be paired with project-based 10:07:05 vouchers from the joint office. Our resident services providers of 10:07:08 NARA and NAYA and NARA will be specifically 10:07:12 providing the services for those units. 10:07:17 And NAYA will have the overall residents. 10:07:23 It's estimated to house 119 -- next slide, 10:07:33 please. Here is an overview of the sources. 10:07:37 $7.9 million in Portland Housing Bonds. 10:07:42 $6.4 million in low-income housing tax credits 10:07:50 from the 4% credit. A $4.2 million permanent loan for 10:07:56 developer fee. OHCS funds, that is from the 10:07:57 multi--family energy programs. 10:08:04 So funds to support energy efficiency and 10:08:07 sustainability upgrades. And then we have a few other grants we 10:08:11 received, a grant from Energy Trust to add solar 10:08:15 to the project, and we also received a grant 10:08:16 from the Cully Boulevard alliance. 10:08:29 Next slide. Currently, we are in the process of 10:08:32 deconstructing the house that's currently on the 10:08:33 site. That's in progress now. 10:08:38 We are also going to be doing some site clearing 10:08:45 trees. Just getting it ready to build on as 10:08:46 soon as we close. 10:08:50 We're in the final stages of permitting with the 10:08:53 City of Portland and we are in the final stages of 10:08:56 our HUD subsidy layering review, a process 10:09:01 triggered by the project -- we have the majority 10:09:06 of our approvals from our tax credit investor and 10:09:11 public partners. And we are looking very good to close 10:09:12 on March 4th. 10:09:14 Probably the one thing that may delay that is if 10:09:17 the subsidy layering review gets held up. 10:09:36 We are looking at a four-month construction period 10:09:39 so we aring look open in the summer of -- next 10:09:49 slide. Some of the I guess the major change 10:09:51 that's occurred that we just wanted to touch 10:09:56 on briefly and was also mentioned earlier in the 10:10:00 presentation by Jill is that the 4% tax credit rate 10:10:06 was fixed. This resulted in an additional $1.35 10:10:09 million in tax credit equity for this project. 10:10:13 In our case, the investor did lower our tax credit 10:10:17 price slightly. So we didn't get a dollar per dollar 10:10:24 increase but we still got an additional amount of 10:10:27 equity. We're using the majority of that to 10:10:30 back costs that had been value engineered over 10:10:33 the course of the redevelopment process due to 10:10:37 rising costs. Another rising cost we are seeing 10:10:41 right now we are trying to manage is lumber which has 10:10:49 gone up very significantly. 10:10:55 We were able to add a resident service reserve to 10:10:58 protect the resident services. We were able to give back a small 10:11:00 amount of bond funds to Portland Housing Bureau. 10:11:17 Next slide. In terms of our DMWESB, we're at 33.3% 10:11:22 with the large majority of that being DMW. 10:11:31 So we were happy to be able to exceed the 30% PHB 10:11:34 goal. Next slide. 10:11:46 Just a note on challenges. We have encountered prior to the 4% 10:11:49 fix, we had been seeing a lot of challenges with 10:11:54 the budget in rising costs, which led us to cut a 10:12:00 number of amenities and other items that we were 10:12:04 really happy to be able to add back at the 10:12:10 last minute. The costs steadily rise during the 10:12:13 course of our design and preconstruction period. 10:12:19 Site challenges, briefly mentioned this as just a 10:12:25 very compact, in-fill site. So just trying to get all the programs 10:12:28 and 50 units on the site was a design 10:12:34 challenge. We also experienced some challenges 10:12:38 with just having campers on site and some 10:12:42 security and safety issues that now that we are 10:12:46 underway with the deconstruction, that has largely 10:12:49 gone away. Something we had to manage. 10:13:04 Next slide. I will pass it over to Keith. 10:13:09 >> KEITH: Great, Lucy. Thanks, committee members. 10:13:14 I am with NAYA family center. I wanted to talk a little bit and 10:13:18 conclude with our community engagement at NAYA and 10:13:19 our partnership with NARA. 10:13:23 We have a targeted outreach, which is very similar 10:13:32 to the program we integrated with. We are grateful we are able to expand 10:13:37 on our housing advocate staff to support to 10:13:39 provide culturally specific support for Hayu 10:13:45 Tilixam. And we are really excited about this 10:13:53 integrated approach which we are including NARA. 10:13:55 Once again they are going to be providing the 10:14:02 support and trauma-informed support for the, for 10:14:05 our residents. We are really excited to be able to 10:14:08 focus on native homelessness and providing 10:14:09 housing stability. 10:14:15 So as part of that, which Lucy mentioned is that 10:14:22 we will have the on-site services with NARA and 10:14:25 they will be working in partnership with NAYA's 10:14:28 staff which will be providing more social services 10:14:33 on site as well as at the NAYA family center where 10:14:40 we provide many social services, from child care, 10:14:43 child development. We have a charter school, many 10:14:47 nations, as well. And we also provide job training 10:14:53 services in addition to our food pantry and our 10:14:53 energy assistance programs. 10:14:58 So we're happy to do that partnership again. 10:15:03 We're happy to continue to grow the Cully 10:15:08 neighborhood. And in collaboration with R42nd and 10:15:13 the business association, we are providing an 10:15:15 employment and business link for residents. 10:15:20 And then also we provide small business support 10:15:28 through that collaboration. And then I do want to finish with just 10:15:33 to reiterate how Lucy had discussed is 10:15:38 that this is the third development with CDP and 10:15:42 NAYA. And this is our second with CDP and 10:15:45 NARA. And we would just like to recognize 10:15:50 how unique that is and how strong relationship 10:15:55 that is. And I feel like we are a well suited 10:15:57 partnership for providing such demanding and 10:15:58 end-need services. 10:16:05 So thank you all for your time. I will turn it over for questions. 10:16:08 >> Holt: Absolutely. Comments from Bond Oversight Committee 10:16:10 members and/or questions. 10:16:20 >> I had a question. Susan Emmons, Bond Oversight Committee 10:16:23 member. When you talk about serving homeless 10:16:26 native folks, where are they coming -- where do you 10:16:27 find they are coming from? 10:16:31 Are in shelters? Are they outside? 10:16:39 Ho how are you finding them? >> With NAYA, we are relying on NARA 10:16:42 which is very in contact with that list. 10:16:45 I could probably follow up with the housing 10:16:48 service director there. Who couldn't be here today. 10:16:50 But she, through their work with rehabilitation 10:17:00 and the community, they are familiar with the residents who are homeless at 10:17:03 this time and we are going to be relike on their 10:17:06 expertise to be able to gather that targeted 10:17:11 outreach. And then go. 10:17:16 >> Holt: Thank you very much. Comments? 10:17:20 Any other? Allan? 10:17:26 >> ALLAN: Dr. Holt, thank you. And Keith and Lucy, this is an 10:17:29 exciting project. I live very near to that site and pass 10:17:29 through that area all the time. 10:17:34 I have put a questions in the chat. I think Keith touched on it a little 10:17:35 bit but I didn't see any unit mix. 10:17:41 I saw there's no manager units. But I'm curious if you are providing 10:17:43 on-site support for especially PSH residents. 10:17:47 Is there space for that? Sometimes I see it included in the 10:17:48 unit mix and sometimes I don't. 10:17:52 Like a PSH office. And the other question I put in there, 10:17:56 it was really just more curiosity around the 10:17:59 consideration around Indian housing block grant 10:18:02 funding and the potential that provides for being 10:18:08 able to directly include units that could go to 10:18:10 members of the native community. Just like at the other project. 10:18:15 That one is more curious see if it had been 10:18:21 considered for this project. >> LUCY: To your first question, yes, 10:18:27 we have an on-site manager's office as well as 10:18:30 two other, a resident services office and adjacent 10:18:30 meeting room. 10:18:36 So we can follow up with those on the floor plans 10:18:40 in you are interested. But, yes, we have a lot of space for 10:18:44 on-site staffing and are planning to have a 10:18:46 full-time staff person for those PSH units. 10:18:53 In terms of the Indian housing block grant, we do 10:18:57 have those funds on the other two projects we're 10:19:00 working on. We were, and I don't know if Keith has 10:19:06 any other background on this, but I think given 10:19:11 that we had to respond pretty quickly to the bond 10:19:14 solicitation when it came up from PHB, I think we 10:19:19 were just unable to secure tribal investors in 10:19:24 time to have that fund, add that fund to this 10:19:28 team. But it is certainly a great way to 10:19:35 able to ensure that you can give that preference to 10:19:37 native households,. 10:19:40 In this case we are going to be more of an 10:19:42 outreach approach to make sure we -- [Inaudible] 10:19:51 >> ALLAN: Thank you very much. >> Holt: Other comments. 10:20:05 Todd or Anne least. >> These are the types of projects 10:20:10 that I think encapsulate when I came into this 10:20:12 process was hoping to kind of see come to life. 10:20:15 So just appreciation for all the hard work in 10:20:18 connections with community-based groups. 10:20:21 APANO has been involved with another neighborhood 10:20:24 prosperity network, with Prosper Portland. 10:20:30 Toe see the local support from the Cully Boulevard Alignians, I think 10:20:34 that's great. That's a great example of 10:20:36 cross-bureau collaboration and just appreciate the 10:20:36 presentation. Thank you. 10:20:40 >> Holt: Thank you. Thanks, Lucy. 10:20:41 Thanks, Keith. Appreciate it. 10:20:50 Our next group to present. >> Hi. 10:20:52 This is Tanya again. Thank you. 10:20:56 I want to give thanks to the team from Hayu 10:20:57 Tilixam. That was a great presentation. 10:20:59 Great to hear from you and thank you for joining 10:21:04 us today. The next project that we want to 10:21:07 present for the committee is the Westwind Project. 10:21:11 So I want to welcome the team from Central City 10:21:14 Concern. And I will hand it over to them to 10:21:16 begin their presentation if they're ready. 10:21:35 I'm going to check real quick to make sure our 10:22:02 team members have joined us today. I don't quite see them yet. 10:22:05 So we might want to give them a couple of 10:22:07 minutes. If there's other items to discuss to 10:22:12 give them a chance to join us and continue with 10:22:15 this presentation, if that's acceptable to 10:22:19 everyone. >> Holt: If you are open to it, what 10:22:23 we could do is switch our agenda a little and open 10:22:24 it for public testimony. 10:22:28 And then come back to that. I don't know if that works. 10:22:35 >> That would be OK with me. Anyone else? 10:22:39 >> Holt: Do we have any public testimony? 10:22:48 Anyone signed up for public testimony? >> We had a couple of folks. 10:22:50 I'm not sure if they are on the call but we had a 10:22:53 couple of people who indicated they might be 10:22:58 interested in providing testimony. And that was a Christopher. 10:23:01 I don't see him on the call. And a Vlad. 10:23:07 If either of you is on the call, I have your 10:23:16 names. >> Holt: I don't see those names 10:23:20 identified. In any of the names that I'm looking 10:23:27 at. >> Stays: I don't either. 10:23:29 >> Holt: We will give then our partners with the 10:23:33 Westwind some moments to arrive and present. 10:23:38 Director Callahan, is there any comment for you? 10:23:43 >> May I jump in? Tanya, I have been on texting with the 10:23:44 Westwind team. 10:23:46 They can't, they don't have the Zoom link. 10:23:51 Could you help send the Zoom link to Mary and her 10:23:58 team? >> Stacy: Yes, I will do that. 10:23:59 >> Callahan: Yes. Sorry, Dr. Holt. 10:24:02 >> The one thing I would mention is just thinking 10:24:09 ahead to our next meeting. And I think we are just jumping back 10:24:12 to a few topics of conversation. 10:24:17 We held a reserve, a very deliberately because of 10:24:23 uncertainty with bond closings. And where financial markets could be. 10:24:25 That was made even more evident to us that it was 10:24:27 a good idea to do that especially with what we 10:24:34 were facing with the COVID challenges. But as you know we are on track to 10:24:36 exceed our goals. 10:24:41 And we still have, it's very clear, apparently, 10:24:44 now that we will have additional money. 10:24:48 Obviously remaining. And be able to hopefully tap into some 10:24:50 of those reserves that we have set aside. 10:24:55 And so I think -- I see Mary just joined the call 10:24:57 from Central City Concern. But I just wanted you to know that is 10:25:02 some of the thinking that we are starting to 10:25:05 prepare for. And I think you can expect that as one 10:25:09 of the topics we will want to be talking with 10:25:13 you about at our next quarterly meeting is 10:25:18 giving you some. Our early thinking and taking your, 10:25:21 getting some feedback from you in hearing from you 10:25:25 about some of the priority areas that we may want 10:25:25 to invest in. 10:25:28 The positive thing for us, obviously, if 10:25:31 everything holds true is that we have achieved all 10:25:34 of our goals. Or will have achieved all of our goals 10:25:35 or exceeded those. 10:25:40 That gives us some flexibility to look at the 10:25:45 priority areas. And do some additional prioritization 10:25:50 within the confines of the bond funding 10:25:51 guidelines from the voters. 10:25:58 Just things to think about. I think we will be talking to you a 10:26:01 little bit more, obviously, about that at our 10:26:03 next meeting but thanks to things for you to noodle 10:26:06 on in the coming months as we get prepared to do 10:26:06 more good work. 10:26:11 Now that I think central city is here, and it 10:26:16 looks likes Mary, Jill Chen. We have two Jill Chens for the 10:26:18 presentation. But I will turn it over to the project 10:26:20 team to talk about this really exciting 10:26:24 project. >> Holt: Thanks, Director Callahan. 10:26:29 Right before we do that, just a point of context 10:26:31 for agenda. Is the Mayor going to be joining us 10:26:32 this morning? Do we know? 10:26:37 >> No. >> Holt: OK. 10:26:40 I saw him here for closing remarks and wanted to 10:26:45 make sure we had time. >> I think that's -- my apologies. 10:26:49 I think that is an old addition from the last time. 10:26:52 So I'm sorry that's still on there. Yeah. 10:26:55 >> Holt: Thanks, tan Y I wanted to make sure we 10:26:59 left enough time for the Mayor. So to our next presenter, Central City 10:27:02 Concern. You may want to make the adjustment 10:27:07 and remaim yourself so that everyone who sees the 10:27:08 recording has your correct name. 10:27:34 That would be great if you can. >> Apologies for not give you the 10:27:38 link. >> MARY-RAIN: Are you ready for me to 10:27:39 jump in? Good morning, everyone. 10:27:42 Good morning to the Bond Oversight Committee. 10:27:45 I am so pleased to be here today to be updating 10:27:49 you all on this very important project. 10:27:52 The Westwind. And my name is Mary-rain owe Mara. 10:27:57 Thanks for the tip, Dr. Holt, on doing the rename 10:28:00 there. I am the Director of real estate 10:28:00 development at Central City Concern. 10:28:05 And before I officially launch into the project 10:28:09 details, I just want to take a moment to thank the 10:28:13 PHB team. What an incredible effort. 10:28:16 Such an incredible partnership and collaboration 10:28:22 on this project. It's a complicated project, a 10:28:25 multi--stage and you will get a sense of it as I go through 10:28:25 the slides. 10:28:29 I just wanted to do a special call out to Jill and 10:28:33 John and Tanya for all of your support and 10:28:35 collaboration. We are so close. 10:28:38 And, again, I am so excited to be here today to be 10:28:42 providing this update. In terms of the Westwind, we are 10:28:45 looking at a new reason Kerring for the future 10:28:51 building, which willing a seven-story, 100 unit 10:28:54 permanent showers looking. 10:28:57 It's in downtown Portland and it's really close to 10:29:01 a number of Central City Concern's headquarters 10:29:06 and services offices. For example, our housing office is 10:29:09 literally just right across the street from this 10:29:12 location. And our Old Town recovery center is 10:29:14 about a five-minute walk. 10:29:19 So this is really located right within the heart 10:29:22 of Central City Concern, what we like to call our 10:29:24 Old Town campus there in this part of the city. 10:29:29 So currently there is an existing building at the 10:29:34 site that the City purchased. I think a couple of years ago. 10:29:38 And Central City Concern has been the property 10:29:42 manager in that interim time. All of those existing tenants have 10:29:46 been relocated out with the collaboration of Home 10:29:48 Forward and Portland Housing Bureau. 10:29:52 And so the existing building will be demolished 10:29:55 before we can obviously start construction of the 10:30:00 new building that you see there. Our development team is Walsh 10:30:05 construction for the general contractor. 10:30:10 Works Progress Architecture as the architectural 10:30:12 team and Central City Concern as the lead for the 10:30:14 project. We can advance to the next slide, 10:30:18 please. As I have mentioned the new building 10:30:20 will have a total of 100 units. 10:30:24 70 of those will be permanent supportive housing 10:30:28 that are supported by project-based vouchers 10:30:39 coming in from Home Forward. We are very grateful for that support 10:30:42 coming into the project. 10:30:47 For that 78 that are being shown 31 to 60% of AMI, 10:30:51 I put a note there that actually 70 of those are 10:30:54 the units that are supported by project-based 10:30:57 vouchers. Even though the rents that are, the 10:31:00 maximum rent that Home Forward will provide subsidy 10:31:04 for is up to 60%, the tenants that live in those 10:31:08 units will not be charged any more than 30% of 10:31:10 their income. And, of course, we expect that most of 10:31:15 those tenants will come in at zero income 10:31:19 being the priority for those units are for 10:31:19 chronically homeless individuals. 10:31:24 In addition to those, permanent supportive housing 10:31:30 units, we have 22 units that are in the 24% to 31% 10:31:34 of AMI. And then eight units that are at the 10:31:38 52% AMI. Those units are not supported by 10:31:41 vouchers but we are still keeping them very affordable 10:31:45 and accessible, low barrier affordable housing for the building. 10:31:56 For the service providers it's a partnership with 10:32:04 us and the the services, and the NARA, Native 10:32:08 American rehabilitation association. NARA will provide services for up to 10:32:11 20 households in the building, again, specifically 10:32:14 for those households seeking culturally specific 10:32:15 Native American services. 10:32:19 So I think I mentioned priority communities 10:32:21 chronically homeless, African-American and Native 10:32:23 American. So we can go to the next slide, 10:32:30 please. As a funding overview we have $11 10:32:33 million coming in through Portland Housing Bond. 10:32:36 And then in addition to that, we have $4 million 10:32:41 coming in through Multnomah County, but via the 10:32:47 Portland Housing Bureau. That overall award is sitting at $14 10:32:51 million. For the LIHTC equity we have just 10:32:54 about $3.5 million. 10:32:59 I think there's a typo. That probably should be $13.5. 10:33:01 In my notes I think that's what I have. 10:33:08 Definitely more than $3.5. So we have 13.5 million in LIHTC 10:33:12 equity. And then we are getting in a 10:33:15 combination of some grants from Oregon housing and 10:33:15 community services. 10:33:18 And then a little bit of contribution coming in 10:33:23 through us as the project sponsor. Mostly via our deferred developer 10:33:30 fee. So we do have a gap that we have 10:33:33 subcommitted our request over to Shannon at Portland 10:33:33 Housing Bureau for consideration. 10:33:36 And I will talk about what constitutes that gap in 10:33:41 just a moment. But at a high level there were some 10:33:45 discoveries regarding existing building and site 10:33:48 conditions that we made after we were awarded the 10:33:53 project and had an opportunity to do more detailed 10:33:53 due diligence. 10:33:57 So we can go ahead and advance, please. 10:34:07 So we are right now at the predevelopment stage. 10:34:12 We are headed towards an April 15th closing and 10:34:16 construction start. So just a couple months out. 10:34:19 We have received our environmental review 10:34:21 clearance from HUD because this project has 10:34:24 project-based vouchers, we have to go through a 10:34:28 couple of extra stages of Federal review, which 10:34:31 not all projects have. It's the project-based vouchers which 10:34:33 trigger those required reviews. 10:34:35 So we've crossed the first hurdle, which is the 10:34:39 environmental review. And we've just submythed what's called 10:34:42 the subsidy layering review package over to Home 10:34:45 Forward. And that will be the second and final 10:34:46 level of Federal review. 10:34:49 So we're anticipating that to take about six 10:34:53 weeks. And get that approval and before we 10:35:01 get to project closing. 10:35:04 For partners I mentioned NA R. A and Home Forward. 10:35:06 We are fortunate to have a partnership with the 10:35:07 Joint Office of Homeless Services on this 10:35:12 project. We will be receiving annual operating 10:35:17 subsidy that allows us to really robustly staff the 10:35:21 building with supportive services person emto 10:35:25 provide the deep level of services that the 10:35:29 tenants will require, both at entry and over the 10:35:34 long-term of their stay and permanent residence at 10:35:34 this building. 10:35:38 I have mentioned our general contractor and arc 10:35:41 text and our closing date. We can go to the next slide, please. 10:35:50 So let's just do a little bit of a dive into what 10:35:54 has been some material changes and what has 10:35:56 constituted our additional request for some 10:36:01 funding. I mentioned that there's an existing 10:36:05 building at the site at 6th and Flanders. 10:36:10 That building shares what's called a party wall 10:36:18 with the building to the south. So literally the south wall of the 10:36:23 adjacent building. 10:36:23 existing building is the north wall of the 10:36:23 So when you are in the units at that building, the 10:36:30 brick is the Westwind building. So this was quite the extent of it was 10:36:32 a discovery, again, just in terms of 10:36:36 what would be required to physically separate these 10:36:39 two buildings in order for us to demolish 10:36:39 the existing building. 10:36:45 So we have work under way through Walsh. 10:36:48 They are building a new interior, from the 10:36:51 interior of the adjacent building, they are 10:36:56 constructing a new wall for that building, Everett 10:36:59 Station Lot ofs. So we will be able to physically 10:37:03 separate and demolish the existing Westwind. 10:37:07 That wall is being again constructed from the 10:37:10 interior of the adjacent building. Right now as we speak that's 10:37:12 underway. What we are at the point of 10:37:16 demolishing the existing west wind, Walsh will go in 10:37:55 the envelope. and finish out the exterior of that new wall in So again this has been one element that has added 10:37:55 some scope and cost to the project. But clearly essential in order for us to proceed with construction of the new building. And then in terms of -- I think I have 10:37:55 more detail on the next slide on the other element. But in terms of some good news, I was just going to mention the 4% rate lock which has 10:37:55 been incredible for our industry. And has brought additional equity into the 10:37:58 project. So fortunately that's reduced the 10:38:01 gap. We would have had a larger gap request 10:38:03 but because that's brought additional equity into 10:38:05 the project we were able to make a reduced 10:38:09 request. On to the next. 10:38:15 And I will talk about -- so I spoke about the 10:38:17 shared party wall. It's just so interesting in the course 10:38:19 of these projects the things you learn, 10:38:21 especially working in historic Old Town. 10:38:28 So apparently, there used to be these gaysome 10:38:33 meter tanks that would hold if natural gas. 10:38:35 They remember constructed throughout cities in the 10:38:39 United States. Large if you look up gas-ometer you 10:38:40 will see some of these structures. 10:38:44 There used to be one at this site at 6th and 10:38:47 Flanders before the existing Westwind was built in 10:38:52 the early 1900s. That was taken down in order to build 10:38:57 the building but they left the foundation to that 10:39:01 gasometer tank several feet underground. 10:39:04 It is 70 Pete in diameter. It's large. 10:39:08 Just imagine a concrete structure that we can't 10:39:10 remove. So what we are doing is taking a 10:39:13 different foundation approach using what's 10:39:15 called micro piles that will allow the team to 10:39:17 essentially drill through that existing condition 10:39:21 and create a structurally sound foundational 10:39:24 approach. Because we didn't know about this 10:39:28 slab, when we went in for award our foundation was a 10:39:29 little bit more straight forward. 10:39:32 That's been another element that's added some 10:39:38 costs that constitutes that gap. Let's move on to the next slide, 10:39:46 please. In terms of our equity contracting 10:39:51 goals, Walsh is projecting a 31.7% achievement for the 10:39:55 hard costs and on the soft costs, we are sitting 10:39:56 at 76% utilization. 10:40:01 Let's see. So Walsh has wrapped up their bidding 10:40:03 period as of last week. 10:40:07 The project is generating a lot of interest, which 10:40:13 is great news. Out of the 160 bids they received, 40 10:40:14 were COVID certified. 10:40:20 They have advertised the bid opportunity widely to 10:40:23 over 10 minority-specific subcontractor 10:40:25 organizations. In addition to that they sent out 10:40:30 direct notices to 2800 certified bidders in their 10:40:32 database. So they are confident that they will 10:40:36 be able to reach at a minimum that 30% of equity 10:40:40 on the hard cost utilization and hopefully just a 10:40:42 little bit more again they are projecting right 10:40:45 now the 31.7% achievement rate. 10:40:50 Let's move on to the final slide, please. 10:40:59 For community engagement, during the design 10:41:03 process, we went out and spoke to a lot of groups 10:41:06 in the neighborhood. But first I will start with our 10:41:07 culturally specific partners. 10:41:14 I mentioned the Imani center which is a CCC 10:41:18 program. They have enengaged in the design and 10:41:20 eventual programming at the program in addition 10:41:23 to NARA. It was really important to get their 10:41:27 input around, CCC we always take a trauma-informed 10:41:30 approach. But having their input, going beyond 10:41:35 that in terms of what are some design elements that 10:41:39 translate into more culturally enriched and 10:41:42 specific for those communities we intend to serve 10:41:43 in the building. 10:41:48 Other outreach and engagement involved the Old 10:41:53 Town Community Association. There's a very active Community 10:41:54 Association in Old Town. 10:41:58 The dynamic is such that it's really important to 10:42:02 be engaged and communicate the value of a project 10:42:08 such as Westwind. And so we've maintained consistent 10:42:11 communication and have received really great input 10:42:13 on design and just how this new building will 10:42:16 interact with the existing community there in Old Town. 10:42:20 Across the street from the Westwind is the 10:42:23 headquarters for the Oregonion called p:ear, which 10:42:26 some of you are probably familiar with. 10:42:31 They work with homeless youth specifically 10:42:35 providing arts programming. And so this was one group that we 10:42:39 reached out early to just as a neighbor, as 10:42:41 another organization, serving a similar 10:42:42 population, to get their input. 10:42:47 I mentioned our neighbors the Everett Station Loft 10:42:51 who were working in their building but why general 10:42:58 wanted their input on design. And Imani center, NARA and CCC has a 10:42:59 resident advisory board. 10:43:02 I went and spoke to them with the architects and 10:43:07 got really great input. A wide group of residents from across 10:43:08 our portfolio. 10:43:12 So they spoke about everything from building 10:43:15 security to the importance of community amenities 10:43:17 and really helped inform that early design. 10:43:23 So finally, for perspective residents -- 10:43:26 prospective residents, I mentioned our culturally 10:43:27 specific priorities and the partners we're working 10:43:33 with. We do have the joins office as a 10:43:36 partner as I mentioned so we will enworking with 10:43:38 the coordinatedded access system to lease 10:43:41 up the 70 permanent supportive housing units. 10:43:44 They have been a great and very collaborative 10:43:49 partner with us thinking through just existing 10:43:55 hurdles in that system. And how people are showing up, and 10:44:00 we're problem solving around making sure that the 10:44:03 clients we want to prioritize are either on that 10:44:06 list and represented or that we've got some 10:44:11 flexibility to advocate for members of those 10:44:14 culturally specific communities that are chronically 10:44:17 homeless and would otherwise qualify for housing at 10:44:17 this new building. 10:44:25 I think that is it for me. And I'm happy to take questions if we 10:44:26 have time for that. 10:44:29 >> Holt: We have got time. Thank you very much. 10:44:40 Questions, comments from the BOC. >> Susan: Thank you for your 10:44:41 presentation. Very exciting project. 10:44:47 And really well needed. I had a question about unit size. 10:44:51 Are they SRO units? Studios? 10:44:56 >> Mary-rain: 70 of the units are SRO, single 10:44:59 room occupancy, approximately 200 square feet. 10:45:02 One of the shifts in design we have had to adapt 10:45:08 to is lessons from COVID. So originally, we were building in 10:45:10 shared community kitchens. 10:45:16 And what we've done is pivoted to more self-sustaining Kitscheneths in each 10:45:20 of the SRO units just ways based on our 10:45:23 experience. We operate a lot of SRO buildings 10:45:27 currently. We do still have those community rooms 10:45:27 on each floor. 10:45:32 But we've pivoted away from sort of more of that 10:45:36 shared kitchen to providing more full kitcheneths 10:45:41 within the SROs. And each of those units has their own 10:45:42 toilet and sink. 10:45:49 On each those floors there are single shower 10:45:51 rooms. So just one door and one shower. 10:45:56 Four on each floor. And then the remainder of the units 10:46:02 are studio. >> Holt: Excellent. 10:46:07 Thank you. Other questions or comments? 10:46:17 >> ALLAN: Dr. Holt, it's Allan. I appreciate the presentation. 10:46:23 This is such an amazing project. This is only kind of a weird -- I 10:46:27 don't know if this presentation will be presented 10:46:29 anywhere else for here for us. 10:46:33 But the piece about the project-based vouchers and 10:46:36 how we're counting the 30%, I went back to the 10:46:38 dashboard that we have and this actually may be 10:46:41 for PHB. I have did show those as 30% units 10:46:42 which I think is fair. 10:46:44 Again, I don't know if it will ever come up again 10:46:49 in how it's actually being counted. But I appreciate the explanation and 10:46:52 just want to make sure those two things kind of 10:46:54 sync up as we continue to move that narrative 10:46:57 forward about who we're serving in these buildings. 10:47:00 It's a really important point. I don't know. 10:47:03 To me it seems like being able to convey it at 10:47:07 that 30% level without really having to explain 10:47:10 that makes sense to me. Kind of the way they did in the 10:47:12 dashboard. I don't know if that's a conversation 10:47:13 you had with PHB. 10:47:16 I'm not sure it matters outside of here. 10:47:24 >> Go ahead, Jill. >> Jill: I am going to jump in 10:47:26 because I think this is maybe the recommendation of 10:47:28 the dashboard require versus a representation in 10:47:29 the presentation. 10:47:39 And what it is is when Mary- Rain presented the 60 10:47:44 % from, that's from Home Forward. Under the regulatory agreements for 10:47:46 the PSC we put them at 30%. 10:47:51 If the vouchers goes away because our rents are 10:47:55 regulated for 99 years. And the project-based vouchers are not 10:47:56 for 99 years. 10:48:00 So we do have that ability to float up. 10:48:05 So that if the rent, the project-based vouchers go 10:48:10 away, our developers can still raise the rents 10:48:14 up. So, yes, it's a matter of 10:48:18 presentation. And appreciate your eagle eye, I 10:48:20 guess, in catching that. 10:48:23 It's a bit confusing because of that representation. 10:48:30 >> ALLAN: That's important context, though, Jill. 10:48:31 Thank you. I appreciate that. 10:48:35 It's interesting. It's important factor in how we 10:48:38 advocate also for that support from Home Forward and 10:48:40 the project-based vouchers, frankly. 10:48:47 That's a pretty good example of that. >> JILL: And if the developers in our 10:48:50 projects do not have the project-based vouchers, 10:48:54 it would be extremely difficult to serve the 10:48:54 homeless population. 10:49:00 I mean, the folks that Mary- Rain and Lucy were 10:49:04 talking about are folks who are probably not 10:49:10 having any income. So without the vouchers, it's really 10:49:14 hard. >> ALLAN: Does that get played out in 10:49:15 the profor thats? 10:49:19 Is there ena assumption about the project-based 10:49:25 vouchers for a certain time period? >> JILL: We do and we work with Mary- 10:49:28 Rain and Lucy and our developers as well as 10:49:31 with their investors, their LIHTC investors as 10:49:32 well as their senior lenders. 10:49:36 So that in the pro formas it comes in at 30% -- 10:49:37 I'm sorry. Not 30%. 10:49:41 60% rents. Otherwise the lenders will never 10:49:41 provide the loans. 10:49:47 >> ALLAN: Thank you. That's great context. 10:49:54 >> JILL: Did you want to comment? >> It's a really good point, Allan. 10:49:56 It's about audience, right? And I will say more generally when I 10:50:01 am out in the community, I do describe this as 10:50:06 deeply affordable, 30% units, as Jill 10:50:09 referenced it's really that nuance with the pro forma 10:50:12 where what we present is actually the higher 10:50:13 voucher rent to get the underwriting in place. 10:50:17 >> I think it is important the point that Jill 10:50:21 made is that we know without subsidies we can't 10:50:25 serve this population. And I just think that's a narrative we 10:50:27 need to repeat and that's a role that frankly 10:50:27 government can play. 10:50:36 >> Susan: I would like to say in response to the 10:50:40 unit design I really applaud for you pivoting in 10:50:44 light of COVID and doing a toilet and a sink in a 10:50:46 kitchenETTE in each unit, I think that's so 10:50:49 crucial for people who are really getting a new 10:50:51 start and giving them dignity in their housing. 10:50:54 And I know it can be done in 200 square feet. 10:50:56 It's seen it. So I think that's great. 10:51:01 I had one other question. Do you, what time line do you allow 10:51:04 for lease-up in a building likes this? 10:51:08 Given who you are going to serve and the 10:51:10 supportive services they are going to need, do you 10:51:18 have an idea in mind of that? >> Mary owe Rain: We do. 10:51:19 For this project we are giving ourselves six 10:51:21 months to get the project fully leased. 10:51:24 I will say in more kind of typical housing you 10:51:28 might see as short of a a three-month leases-up 10:51:31 period. But because we're working with the 10:51:35 joint office as our referral partner in addition to 10:51:39 NARA and Imani, we know there's the need to get 10:51:44 things right and make sure that we have 10:51:47 sufficient time for those waiting lists to be built up 10:51:50 and for us to work through that process. 10:51:54 We also, as the developer, I hate to have staff 10:51:57 stressed out. I'll just say from previous 10:52:01 experience, the last thing you want is your lease-up staff 10:52:03 scrambling and feeling like they're not able to 10:52:05 do what they need to do. 10:52:08 And we all want to serve the mission here. 10:52:13 And lease up the building for the intended and 10:52:17 required population, but give us that room to do 10:52:23 it in a comfortable and efficient way. >> Susan: Again, I applaud you for 10:52:24 allowing six months. 10:52:29 It's just years ago when I was at knot Pilot Project we did a new 10:52:35 project, 12th Avenue terrace that is owned by reach 10:52:39 leaving homelessness. and it was 118 units designed for seniors 10:52:43 We also had six months. And we needed every bit of those six 10:52:47 months to do it right, to identify people who were 10:52:49 homeless, and get them into the building. 10:52:51 I know some people thought, oh, that building's 10:52:57 never going to be full. But it really, I think that's just 10:52:57 realistic and I'm really glad to hear that. 10:53:04 >> Thank you. >> Holt: Excellent. 10:53:09 Any other comments? >> Callahan: Go ahead. 10:53:11 You are a Bond Oversight Committee member. 10:53:15 Go ahead. >> Thank you for this great 10:53:18 presentation. It was really helpful to kind of walk 10:53:20 through it and walk through all the pieces and 10:53:23 kind of understand the different moving parts 10:53:24 around the financing pieces. 10:53:27 And I think my question actually might be more for 10:53:29 PHB, which is trying to understand the next steps 10:53:35 and time line around the gap financing issue and 10:53:41 what that piece looks like. >> Callahan: Anneliese, thank you. 10:53:43 Jill can follow up with me a little bit. 10:53:47 But as you might recall, as part of our process 10:53:50 that we shared with you earlier, we do ask for 10:53:57 formal requests to change from the award that had 10:54:00 been previously given. What we will be bake making those 10:54:02 decisions in the next week. 10:54:07 But what I will tell you is, I just wanted to say 10:54:09 that -- because I have Central City Concern on the 10:54:13 call, I wanted to express my deep appreciation to 10:54:18 the Central City Concern team. This is a challenging project from the 10:54:20 development perspective, as you've heard. 10:54:24 Party walls, gas owe meters. Who knew. 10:54:29 I didn't even know what they were. And also Central City Concern has been 10:54:32 a partner with us since we took possession of 10:54:36 the property. So they were managing on site the 10:54:38 tenants, the existing tenants at the Westwind and 10:54:41 working alongside our relocation experts. 10:54:46 And I will say that I think this was one of the 10:54:51 most challenging relocations that any of us have 10:54:54 ever experienced. And was made even more challenging in 10:54:55 the environment of COVID. 10:55:04 I just wanted to take that moment to really 10:55:07 thank Central City for frankly hanging in there 10:55:08 when some time linings were changing, things that 10:55:12 were out of your control based on the pandemic, 10:55:16 and just your true appreciation to your team for 10:55:19 so wonderfully working with all of the residents 10:55:22 and making that building safe as long as we 10:55:27 could. So please, I hope you hear that from 10:55:31 me, Mary- Rain, you take that back to your 10:55:34 time. Did you Unicomplex job. 10:55:37 I will let Jill follow up on the question of the 10:55:40 actual increase. But we do a a process and we will be 10:55:41 going through that. 10:55:43 I will say that I am comfortable that there is a 10:55:48 need for us to come in with additional gap 10:55:55 funding. >> JILL: Thank you, Shannon, and I 10:55:57 would repeat everything Shannon said about Central 10:55:59 City Concern and the partnership with Central City 10:56:04 Concern. When PHB looked at the site, there 10:56:09 were a number of things that Mary- Rain mentioned. 10:56:12 Likewise I never something about a gasometer. 10:56:22 And how big it was. It covers 75% of the site. 10:56:27 That's unusual for PHB. I have seen gas tanks but something 10:56:33 this big and unwieldy and the creativity that Mary 10:56:35 Reign and her team had was incredible. 10:56:39 Their design team. And Central City Concern and Walsh 10:56:43 looked at this in every which way. 10:56:51 The seismic issues were significant. They worked incredibly well with 10:56:54 Everett street lofts next door which is affordable 10:56:56 housing actually, to essentially build another 10:56:57 wall. Those were incredible. 10:57:01 And I really appreciate their work with John and 10:57:07 the rest of PHB team and Tanya, and Molly in the 10:57:12 relocation. In terms of the actual next steps, we 10:57:16 have a request from Central City Concern 10:57:21 listing out the cost differential and why there is 10:57:24 additional cost and itemizing the areas where these, 10:57:27 you can call it extraordinary site conditions came 10:57:31 into play. Be it for the party wall and 10:57:37 stabilization of that party wall, or the gasometer, even 10:57:40 things like the holding cost. 10:57:42 Because there's going to be a little bit of a 10:57:45 break. We are going to lay it all out. 10:57:54 And that comes up to a certain amount. That actually exceeds the 1.18 that 10:57:56 Mary Rain listed in her presentation to you. 10:58:07 And partly because of the LIHTC 4%, PHB's, call it 10:58:10 incremental cost is now shrunk down to 1.18. 10:58:14 If we didn't have that it would be much, much 10:58:17 higher. And I applaud Central City Concern and 10:58:22 especially from the PHB side, and working with 10:58:25 BDS to figure out what is available, what can we do 10:58:26 based on code? 10:58:32 So that we don't have to, we can pick the most 10:58:37 cost effective way to manage that extraordinary 10:58:43 site condition. So once CCC's memo to us, I think 10:58:45 there's some other issues that we are looking at to 10:58:46 finalize this. 10:58:51 Once that's finalized, the team, myself and John, 10:58:54 will send Shannon a sort of review memo about the 10:58:57 costing and the reasonableness of it and how does 10:59:02 it play in the overall, call it bond metrics, and 10:59:10 the importance of it. And Shannon will work with leadership 10:59:12 and commissioners and reach out to you all 10:59:16 in terms of what that means for this project. 10:59:25 Does that help you, Anneliese? >> Holt: Thanks, Jill and Shannon. 10:59:28 Any other comments from Bond Oversight? 10:59:33 Allan? 10:59:36 >> ALLAN: Again. I have to jump off at 11:00 for 10:59:40 another meeting. I think we sort of knew with this 10:59:41 Westwind, I remember conversations from the very 10:59:43 beginning, this is a complicated project. 10:59:47 It's a complicated site. But it's also a vital project. 10:59:49 And so I don't think we're sort of surprised we 10:59:54 are where we are. And in to some degree, I think we're 10:59:56 in better shape where we thought we might be. 10:59:58 There have been a lot of complexities along the 11:00:02 way. Great credit to PHB and Central City 11:00:06 Concern. But I remember conversations that this 11:00:09 was important and difficult. 11:00:13 So I think we are where we are. Appreciate the work you all are 11:00:16 doing. >> Holt: Thank you, Allan, you did 11:00:18 highlight the fact we are at time. 11:00:21 And I want to thank everyone for your involvement 11:00:25 and engagement today. I want to be responsible and 11:00:28 responsive to the reality that probably all of us are in 11:00:31 that space of right up next moments. 11:00:34 We are not going to have another opportunity for 11:00:36 public testimony. Let me encourage anybody who has 11:00:40 subtestimony to submit it via email or reach out to 11:00:43 the PHB staff and share your thoughts. 11:00:45 Our next engagement, the next time we come 11:00:48 together is in April. And it will be an evening meeting. 11:00:50 And we are looking forward to connecting. 11:00:53 Thanks, guys, for all of the work that you do. 11:01:01 And to end, again, with another quote. And that is from attributed to Dr. 11:01:03 Martin Luther King, Jr. 11:01:06 It is always the right time to do the right 11:01:07 thing." Thanks, everybody.