2021-02-04 BOC Meeting (closed caption)

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.