09:22:00 please stand by. Please stand by. 09:22:58 Please stand by. Al 09:23:43 Greene 09:23:45 . . 09:30:49 09:30:54 >> Good morning, everybody. It's 9:30 on the 15th of July. 09:30:59 This is the bond oversight committee Portland housing bureau and I'm Dr. 09:31:05 Holt. And I have the PRIF -- 09:31:07 privilege of facilitating this meeting. 09:31:09 Glad you're here. We're going to get officially going in 09:31:15 just a moment when we get just an opportunity unless you think we're 09:31:19 ready to go, opportunity for others to come into this space. 09:31:24 >> Dr. Holt, I think we have all of our members with us and most of our 09:31:27 staff. So I think we are ready to go. 09:31:30 >> Great. Can I have gallery view, then, where I 09:31:34 can see everyone? >> I think you have to adjust that on 09:31:38 your own settings. You should have a -- I'm not sure what 09:31:44 it looks like on the ipad but you can have a view button and do side-by-side 09:31:45 gallery. >> Gotcha. 09:31:49 >> Is that helping? >> I gotcha you down across the 09:31:51 bottom. I wanted to see everybody at the same 09:31:51 time. That's OK. 09:31:55 We'll go with this. >> Let's see. 09:31:58 I'm not sure if you can do that with Tanya's screen being shared and the 09:32:01 presentation up there. >> No worries! 09:32:06 We'll go with it just like we have it. Again, good morning,everyone! 09:32:07 We'll go through roll call real quickly. 09:32:10 Susan? >> Here. 09:32:13 Bond oversight committee member, happy to be here. 09:32:16 >> Good to see you. Todd? 09:32:30 You're still muted, sir. >> I'm sorry. 09:32:34 Good morning, everyone. Todd Struble, bond oversight 09:32:38 committee. And I'm the Chair. 09:32:40 >> Good to see you. Anneliese? 09:32:47 >> Good morning, everyone. Anneliese Koehler, bond oversight 09:32:48 committee member. Happy to be here. 09:32:50 >> Good to see you. Allan? 09:32:57 >> Good morning, everyone. I'm Allan Lazo from the fair housing 09:32:59 council of Portland. Bond oversight committee member. 09:33:00 >> Excellent. Welcome into the space. 09:33:05 For those of you who are coming in who are guests into the space, it's the 09:33:08 meeting that's open to the public. And it's not a public meeting. 09:33:12 That simply means that you have the opportunity to listen, watch and 09:33:16 observe the work of the bond oversight committee. 09:33:18 You will have moments for public comment. 09:33:23 We ask that your comment be connected to and directed by the agenda, as you 09:33:28 have seen. And/or will see. 09:33:33 If there's elements, concerns or items that are beyond the bond oversight 09:33:35 committee meeting board, this particular time, this agenda, we ask 09:33:40 you to direct those comments and questions and interactions with 09:33:47 Portland housing bureau staff. So Portland housing bureau staff, 09:33:50 raise a hand so everyone can identify who you are. 09:33:55 Excellent. We've got many minutes for approval 09:34:00 from the last time we were together. The 15th of April. 09:34:02 Wow. Time runs so quickly. 09:34:12 If there are any comments or if there is a motion to approve the minutes, I 09:34:13 defer to one of the members of the bond oversight committee. 09:34:21 >> I'll make a motion to accept the minutes as they were given to us. 09:34:26 They seem thorough and accurate to me. >> Got a double second. 09:34:35 Just snuck in right before Anneliese. So moved and seconded. 09:34:39 We will move forward with our meeting. Minutes approved and accepted as 09:34:45 reported. We now are going to open up for some 09:34:45 public comment. Public testimony. 09:34:48 There are two minutes allotted per person. 09:35:00 And who do we have who is watching our -- to see if there's any public 09:35:02 comment. Is that Stacy? 09:35:06 09:35:12 >> I think Tanya and I have both been monitoring this on the registration, 09:35:16 there was no one who indicated they wanted to give public testimony. 09:35:20 Jillian, I think you were a maybe? And I don't see anyone who has 09:35:22 registered in this the chat. To give public testimony. 09:35:32 >> Since I was presenting, I didn't know if I needed to click yes to be 09:35:32 able to speak. So I said maybe. 09:35:38 >> Then I'm not aware of anyone who wants to give public testimony. 09:35:42 No one has registered. And no one has indicated a desire to 09:35:45 do so in the chat. >> Thank you very much. 09:35:47 Do you think we should let Jillian share today? 09:35:49 Do you think that's a good idea? Jillian talks? 09:35:57 Just kidding. >> I know, you might never get me to 09:35:57 stop. At your own risk. 09:36:11 >> Without having any public testimony, we'll move forward in our agenda. 09:36:19 And that's the staff updates. So our first is the project projects 09:36:24 dashboard. Jill? 09:36:25 >> Thank you, Dr. Holt. Next slide, please. 09:36:33 As mentioned, the dashboard is slightly updated, I think, when you saw that in 09:36:38 the presentation. This is the sort of the dashboard 09:36:40 report. But when you look at the dashboard 09:36:47 itself, it shows we've amended it and revised it to show the status of 09:36:49 projects. Those being in, being open in 09:36:53 construction and in pre-development. So we're pleased that currently only 09:36:58 three bond projects are in pre-development while seven are in 09:37:02 construction and two are open. The dashboard is that big spreadsheet 09:37:05 so sorry if I'm referring to that big spreadsheet, not on the slide right 09:37:10 now. What you'll also note is we've added a 09:37:15 new column for the latest total project cost as well as bond funds spent per 09:37:24 unit. In 2019, bond opportunities 09:37:28 solicitation, maximum bond subsidy was set at $150,000 per unit without the 09:37:34 delivery fee or with the program delivery fee, a total maximum of 09:37:38 $160,050 per unit. And you'll see on the big spreadsheet, 09:37:45 or that big dashboard, six out of the seven projects under construction came 09:37:51 in under the maximum subsidy per unit. This is in the large part due to the 09:37:53 4% rate being fixed on -- at the end of 2020. 09:38:02 Which generally, the substantial tax credits allow P.H.B. to call back some 09:38:05 of that subsidy. Going to this particular slide, you'll 09:38:09 see that it summarizes the total -- the current status of key metrics under 09:38:14 the bond measure. Total units being the first one on the 09:38:21 left. The target was 1,300 and we're now at 09:38:22 1490 about a substantial amount either in open or in construction. 09:38:30 The next is number of family units which our target was 650. 09:38:40 Number of 30% units, target 600 and number of permanent supportive housing 09:38:44 units which was 300. So all of our targets continue to be 09:38:49 met and we're moving towards that. And on the far right, you'll see that 09:38:52 total number of people housed. So this is sort of our summary going 09:39:02 forward. Next slide, please. 09:39:09 Of the seven projects under construction, crescent court are 09:39:12 already closed and under construction since the last oversight bond 09:39:16 committee in April. And these are now joined by three new 09:39:22 projects since then. Westwind, central city concern and 09:39:24 focused on permanent supportive housing which closed in May. 09:39:34 Next slide, please and joined by stark street housing and Emmons place which 09:39:43 both closed in June. Stark street sponsored on human 09:39:50 solutions focused on families and Emmons focused on supportive housing 09:39:52 and seniors with disabilities. Credit to Susan. 09:40:03 Thank you, Susan. And the remaining projects, 3000-3032 09:40:08 Powell, Anna Mann house and joyce hotel are targeted to be closed between 09:40:12 September and December of this year planning partially due to the 09:40:16 legislative blackout in July and August. 09:40:24 3032 Powell is sponsored by home forward and the investment will be 09:40:33 presented to city council on August 25th and updates on Anna Mann and 09:40:38 joyce by the end of this meeting. By the end of 2021, our bond 09:40:43 solicitation projects will be in construction with the first bond 09:40:46 project. Expected to meet project completion by 09:40:52 April of 2022. Now, we'll turn over to Leslie for the 09:41:03 expenditure report. Thank you. 09:41:14 >> Good morning, everyone. I'm filling in for Mike. 09:41:21 Forgive me I'm not as knowledgeable. He's taking a much needed vacation. 09:41:23 Additional spending activity with the four other projects continuing to 09:41:28 spend bond funds. The spending increase shows 09:41:32 dramatically in the graph as a commitments portion is given way to 09:41:38 the expended portion while the green is the commitments and the darker blue is 09:41:43 the expended. Interest and credits continue to grow 09:41:48 as the 2020 B bond funds earn additional interest. 09:41:54 As noted in April, the bond delivery expense percentage has dropped below 09:41:59 7% as the bond project expenses grow. The percentage delivery expense for 09:42:02 expended and committed will grow for the same reason. 09:42:06 It's a math thing which I don't understand to be totally transparent. 09:42:10 And then next quarter, these trends should continue as we are in the heart 09:42:12 of the construction season. And as we approach the next project 09:42:21 closing. So any questions? 09:42:37 >> You can use the hand raise feature which would be excellent so we can 09:42:39 kind of manage when questions come up. Doesn't look like there are any 09:42:43 questions at the moment. >> All right. 09:42:47 Thank you so much. And if you have questions, you can put 09:42:51 it in the chat. Or shoot me an E-Mail and I'll make 09:42:53 sure that Mike gets the answers for you and thank you for your time this 09:42:56 morning. >> Thank you. 09:43:06 And Jill, anything else? >> I think that's it for the updates. 09:43:09 Is there any other questions from any of the oversight committee members? 09:43:20 If not, we'll go to the next slide. And I think that's Molly. 09:43:24 >> Good morning, everyone. I'm Molly Rogers, deputy director of 09:43:32 the Portland housing bureau. And I am happy to report on the latest 09:43:36 annual audit. As you recall in our bond measure 09:43:42 itself, we had committed to annual financial performance audits. 09:43:47 And we just concluded the one from 2019 to 2020. 09:43:55 Next slide, please. So what's interesting about 19-20, you 09:44:00 see a lot of uptick of activity in the last fiscal year. 09:44:01 19-20, we didn't have any projects close at that time. 09:44:08 And so what was the most important piece to the audit that they found 09:44:12 that the expenditures charged to the bond program account conformed to the 09:44:16 bond measure. So this is -- this is what we like to 09:44:19 see. And, you know, like good auditors, 09:44:29 there was also a series of different recommendations. 09:44:34 Three findings and six recommendations is help improve documentation 09:44:39 reporting but the key thing here is there were no -- nothing that were -- 09:44:39 no charges that didn't meet the bond requirements. 09:44:47 I'll go through the three different findings and the different P.H.B. 09:44:51 responses to them. I will say this has been a great 09:44:57 opportunity, I believe, for a road map to look at our systems and improve our 09:45:00 procedures and policies. Around all of our bond expenditures. 09:45:07 So a lot of these will be things that we will -- we are going to do moving 09:45:10 forward. And so a lot of these recommendations 09:45:13 are really just kind of a best practices guide of how we manage the 09:45:16 bond. Next slide? 09:45:25 So first finding from Harvey Rose, reviewing and documenting procedures 09:45:28 for Portland housing bureau staff time allocated to bond funded projects. 09:45:38 So we, of course, have time allocations and we do time tracking of people's 09:45:39 staff. The ones that are charged to the 09:45:46 bonds. And, you know, auditors like to see 09:45:49 everything be completed tied to a timesheet. 09:45:54 We do also with some staff, we do a time allocation spreadout. 09:45:57 Those who manage nonprofits are familiar with this. 09:46:00 Different ways to track time to your administrative expenses. 09:46:07 So we had -- we agreed that we will increase our tracking and the amount 09:46:12 -- the frequency by which we look at the time allocations of all the 09:46:17 various staff that are charged to the bond account and increase that 09:46:21 opportunities for adjustments. Any questions on this one? 09:46:27 OK. Next slide. 09:46:36 Finding 2. They recommended we were updating and 09:46:40 revising internal control procedures for reviewing loan disbursement 09:46:45 requests to ensure compliance with loan agreement terms, bond measure language 09:46:52 and state constitution requirements. So first of all, we agreed with them 09:46:57 that we did need to do some updating of our procedure manuals. 09:47:05 A lot of this -- a lot of our disbursement practices were -- 09:47:08 were done and updated really right around the same time as the bond 09:47:11 measure. And we agreed that there were a lot of 09:47:18 forms and new procedures that we had developed over the course of really 09:47:23 2019 to 2020, over the course of that fiscal year that we needed to make 09:47:28 sure was embedded in the procedures manuals so we can ensure the staff are 09:47:32 being trained and onboarded on a frequent basis to understand those new 09:47:35 procedures. We -- the key thing around the bonds 09:47:39 is determining whether it is capitalizable. 09:47:44 That's part of the -- our work with attorneys and our work with accounting 09:47:50 firms over the course of two years. Really did make very clear to us that 09:47:57 it's a complicated set of definitions that we are threading and we look at 09:48:01 the bond measure language itself. We have to adhere on the state 09:48:08 constitutional requirements, and we have to actually ensure gap generally 09:48:11 accounting -- principles are being applied. 09:48:17 So given the nuances of all that, we remain committed that the 09:48:20 certification of the bond eligibility has to remain certified public 09:48:25 accountants. That was something that has been part 09:48:31 of our bond guidelines and the auditors also mentioned that that is the key 09:48:34 way that we are ensuring bond eligibility. 09:48:43 What they requested is we do additional monitoring through that disbursement 09:48:46 process as the projects come in and they give us the invoices of how the 09:48:51 project costs are being spent. And so we said we would do some 09:48:52 additional monitoring and some additional training on that piece. 09:49:03 Last but not least, we had part of one of our new forms is including 09:49:06 certifications along the way that is being endorsed by the developers. 09:49:11 Like I said, ultimately is certified by a certified public accountant. 09:49:16 So what we are going to also do is make sure that we identify the source of 09:49:21 the funds at the time of financial close of what is actually paying for a 09:49:25 program delivery fee. So there's this nuances there. 09:49:30 We want to make sure it's all good costs paying for the program delivery 09:49:35 fee because at the end of the day, show that those costs are also 09:49:38 capitalizable. Allan, you have a question? 09:49:45 >> Yeah, thanks, Molly. And I think you answered it for the 09:49:49 most part in the bureau's response. I just want to note, though, that in 09:49:55 looking at the audit report itself, at least in the executive summary, the 09:49:58 titling for this finding actually slightly different which I thought was 09:50:00 interesting in the way that the auditors put it. 09:50:06 It says the housing bureau relies primarily on developers' accountant 09:50:10 certification and contractual liability to ensure compliance. 09:50:13 It talks about that process. I think the response is right on. 09:50:17 The sense that I think they're getting to there needs to be some more sort of 09:50:24 outside or third party oversight of those processes, not just relying on 09:50:29 the developers, you know, side of things. 09:50:32 And it sounds like that's how you all have responded. 09:50:37 Am I framing that correctly? >> They wanted to make sure that there 09:50:42 was checks and balance as well as externally. 09:50:47 We absolutely agreed that is key to all the work that we need to do. 09:50:52 They really recommending that we shore up some of our internal procedures 09:50:56 manuals which we will do. We're actually in the process of doing 09:51:00 that. We're looking at updating our program 09:51:03 delivery fee guidelines to create more clarity of when we need those 09:51:07 certifications. And ultimately, we need the 09:51:13 certification to be done by a third party certified public accountant 09:51:17 because in the event that they find that something was spent that was not 09:51:20 bond eligible, we need the ability to those developers to pay it back. 09:51:25 So the onus is on them. The liability is on them. 09:51:29 They then have to pay us back. Or most likely what they'll do is 09:51:36 reallocate the costs differently to make sure it's a clean audit and all 09:51:38 the bonds are funded that way. Any other questions on this one? 09:51:48 OK, third slide. Next slide. 09:51:54 This one is really related to -- I'm going to pass this one to Tanya a 09:51:57 little bit. But just a little bit of context. 09:52:02 This is something that Harvey Rose has been mentioning in every audit we 09:52:04 get. Always room for improvement around 09:52:06 reporting. And so it's a good opportunity for us 09:52:13 to check in with you all on, you know, are we providing a sufficient level of 09:52:17 detail. Are we getting to, you know, the bond 09:52:21 measure itself and making sure that there's transparency of how the bonds 09:52:25 are being spent. So Tanya, what else did you want to 09:52:27 add to this one? >> Good morning, everyone. 09:52:32 I'm program coordinator here at the bureau. 09:52:36 Like Molly mentioned, I mean, this is the one that everyone is probably most 09:52:41 familiar with in terms of the content because it is in regard to the 09:52:45 quarterly reports that we share with you all each meeting and the annual 09:52:47 progress report that you all just presented to city council. 09:52:54 Not too long ago. So it's really, I think, just 09:52:58 identifying areas that we could improve, be a little bit more 09:53:00 detailed, you know. One of the first findings and 09:53:04 recommendations that they made was wanting to see a little bit more 09:53:08 detail and differentiation in the expenditure report. 09:53:13 In our response, we said that we would continue to work with you all on the 09:53:17 oversight committee to figure out what kind of revisions we might want to add 09:53:21 to that expenditure report to give it a little bit more detail. 09:53:26 So we'll likely be bringing that back to you over the next few quarterly 09:53:29 meetings to figure out exactly, you know, what works for the oversight 09:53:35 committee, what's going to work for public information in terms of, you 09:53:42 know, how we're communicating with all of our constituents in that regard. 09:53:50 Then I think we've already made some updates as Jill reviewed in the 09:53:52 progress dashboard, we have incorporated some of the 09:53:57 recommendations in there by including our bond funds per unit amount and 09:54:02 overall average per unit per project of bond funds that were spent. 09:54:07 And then kind of updating our notes column so we can really do a better 09:54:11 job of reflecting when there's changes in projects and what those changes 09:54:18 were and what the criteria, they were based off of when they came in to 09:54:25 request a change, a significant change in units mix or funding amounts, etc. 09:54:26 Finally, I see, Todd, you have your hand up. 09:54:31 So I'll get to you. With regard to the annual report and 09:54:38 just, you know, working, again, working with you all as we're getting ready to 09:54:42 prepare the 2021 annual progress report and the level of detail, financial 09:54:43 information that we want to insert and communicate through that report. 09:54:51 So, again, you know, we'll be talking with you all as we go forward. 09:54:56 And that is really kind of, I think, the main focus of this 09:55:01 recommendation. Todd, I saw you had your hand up 09:55:07 earlier so I want to give your update. >> I think I figured it out. 09:55:09 I do have an additional question. But I was wondering what the 09:55:14 difference was between per unit per project and average per unit? 09:55:17 What the difference was. It sounds like we'll have a report of 09:55:20 what each unit costs in each project and then overall like how much per 09:55:25 unit. I guess the follow-up question to that 09:55:32 is do we know what, like, leverage -- like the total cost per unit per 09:55:39 project or like on average per unit including like leverage funds like 09:55:41 non-bond resources are? So yeah, I guess that's my question. 09:55:47 >> Yeah, and we have -- go ahead, Jill. 09:55:49 I'll let you answer. You know more. 09:55:53 >> I was going to say do you want me to answer that? 09:55:55 Yes, Todd. We have all that information. 09:56:01 We just didn't want to necessarily overload our dashboard because trying 09:56:06 to put everything on one 8 x 14 piece of paper is a challenge. 09:56:09 >> Becoming a dashboard. Yeah. 09:56:14 >> We do keep track of all that information including cost per unit, 09:56:19 subsidy per unit, total cost as well as total P.H.B. 09:56:23 subsidy per unit both bond and non-bond funds. 09:56:26 We also keep -- so each of the presentations, you'll see, they'll 09:56:31 talk also about the leverage meaning for every bond dollar, how much are we 09:56:35 getting from, say, low income housing tax credits? 09:56:42 Senior debt, grants, and any deferred developer fee and the whole gamut. 09:56:45 Those will be presented in certainly the project presentations. 09:56:49 But I think it will be useful if you let us know what additional 09:56:52 information you'd like to have including things like leverage or 09:56:53 others. Yes, Allan? 09:57:01 >> Yeah, and then this is one of those things where, you know, the auditor 09:57:03 better be careful what they wish for, right? 09:57:09 There's an infinite number of ways to slice and dice the data in the 09:57:11 financial information. My sense is it's not like the 09:57:14 financial data doesn't exist. It's just how we have chosen to 09:57:17 present it. So I think it's worth a conversation. 09:57:22 I agree, because you can infer like the leverage from the total project cost 09:57:25 vs. P.H.B.'s investment on the dashboard, right? 09:57:29 So just doesn't show the calculation. Other thing that might be interesting 09:57:35 is, you know, the audit report was for 1920 when there weren't construction 09:57:39 dollars going out yet. So, you know, thinking about whether 09:57:44 or not there would need to be changes moving forward in how those costs are 09:57:45 conveyed now that we've shifted phases. 09:57:47 I don't know if that's the case or not. 09:57:52 But it's something for us to think about, also, since the audit actually 09:57:56 lags behind where the project is. You know, I do like some of their 09:57:59 suggestions here about, you know, stuff that could be added. 09:58:04 But again, you know, just pointed out, the dashboard ceases to become 09:58:08 effective if we just try to add every single piece of data in there. 09:58:15 So yeah, appreciate that you all are thinking about it. 09:58:20 >> Thank you. >> Thanks. 09:58:25 Again, we'll keep coming back. And as we work through and ask that 09:58:32 you continue to think about ways that would improve those reporting -- those 09:58:37 quarterly reports for your own benefit and take more of a community lens on 09:58:44 it as well. >> Thank you very much, Tanya, is that 09:58:44 the end? >> Yes. 09:58:52 >> Wonderful! Appreciate the transparency of 09:58:54 communication. We'll move forward to our plan for the 09:59:02 remaining bond funds. $37 million. 09:59:03 What's on your mind? >> Good afternoon. 09:59:11 Committee and Dr. Holt. We wanted to do a brief follow-up with 09:59:16 you on our prior discussion that we had last bond oversight committee 09:59:17 meeting. If you'd please advance to the next 09:59:24 slide. This, of course, is the projects on a 09:59:26 map of where the current 12 projects are. 09:59:35 Next slide, please. And this actually is a map, I believe, 09:59:38 Anneliese, that you requested at our last bond oversight committee meeting 09:59:46 that gives the oversight committee an idea of where our bond projects are 09:59:46 overlaid with the P.H.B.'s housing portfolio. 09:59:56 So these are little circles based on size or indicating the size of the 10:00:02 various units throughout the city. And where we have been able to add new 10:00:04 bond units. So I know you've gotten this in 10:00:06 advance but I wanted to make sure that you had a chance to look at this. 10:00:16 There are parts of the city that are not well represented in our 10:00:21 portfolio. In particular far northwest and far 10:00:25 southeast. Much of that is due to the zoning in 10:00:29 some of those particular areas. And then, of course, what you'll also 10:00:34 see is particular concentrations of housing where we have had urban 10:00:37 renewal areas. It doesn't explain all of the 10:00:43 concentration of affordable housing. But it is a good indicator, especially 10:00:46 in north and northeast, you'll see a lot that's related to our work in 10:00:55 interstate urban renewal area, gateway and, of course, multiple tax increment 10:01:00 financing districts over the years in the southwest and northwest of the 10:01:06 city. So I wanted to just pause here and see 10:01:10 if you had any questions or comments about this particular slide, as I know 10:01:13 it was something that you were interested in delving into a little 10:01:26 bit more. >> Sorry, for some reason, I couldn't 10:01:28 figure out where the raise hand function was. 10:01:30 Spending time to try to find that. Thank you so much for this. 10:01:33 This is really helpful. I really appreciate being able to look 10:01:40 at it more holistically. And sorry, I'm like trying to orient 10:01:47 this with Portland, as I understand the map is kind of the far left side. 10:01:53 Is that Forest park? Is that why that has nothing there? 10:01:55 >> Yes, that is the majority of the park along highway 30. 10:02:01 >> OK, that line is highway 30. >> I think that is more the river. 10:02:07 >> The river, OK, thank you. No, this is really helpful to see. 10:02:10 And also, helpful because I know some of what was raised, I think, last time 10:02:15 was, you know, are we doing much in southwest Portland and that kind of 10:02:18 concern and kind of looking at this holistically, it shows, you know, 10:02:22 there are parts of southwest Portland that also don't have affordable 10:02:24 housing. Might not be a bad idea to think about 10:02:25 that still. Thank you. 10:02:30 >> Allan, I saw your hand go up as well. 10:02:36 >> Thanks, Dr. Holt. I agree, Anneliese, with everything 10:02:40 you said. I think this is a really helpful 10:02:44 visual of, you know, kind of what's going on in this city and community 10:02:49 overall and I agree with the sense that, you know, one of the 10:02:52 opportunities we have with bond dollars is to put them in places where we 10:02:55 might not have other regulated affordable housing. 10:03:01 And certainly, you know, we have to be opportunistic and that's the rub, 10:03:03 right, is really where can we find those opportunities? 10:03:07 And I think certainly you all have done that along the way, and I think this 10:03:13 helps, you know, potentially directs that last piece of this to say, OK, 10:03:17 where could we have an impact where other types of sources may not have 10:03:22 been able to in the past. 10:03:24 >> Thank you very much. 10:03:30 Back to you, director. >> I didn't see it. 10:03:38 >> I guess it does tail on that. I think particularly if we're focused 10:03:43 on southwest, there's been the talk of a transportation project that would 10:03:45 connect with west Portland town center. 10:03:51 And so, you know, we've been involved in some conversations around how we 10:03:56 can plan for affordable housing in advance of that transit project even 10:04:01 though the transportation bond didn't pass in the last election cycle. 10:04:05 So I guess that's something to keep an eye on and hopefully, like if the 10:04:12 timing works out, that's an opportunity that I think might coincide with the 10:04:16 desire to do things in the southwest. >> Well, you know, I would also like 10:04:23 to add this does not include we are in the middle of a solicitation for metro 10:04:30 bond funds. And we are working with metro on an 10:04:37 approval process for a few units that we had done a specific solicitation or 10:04:44 permanent supportive housing units so you, I think, will see some, also, 10:04:50 activity coming out of that. Our work in the northwest metro. 10:04:55 So just a little bit of a notice, that's also been a priority region 10:04:57 wide as we're considering transportation access issues. 10:05:06 All right, with that, I'll move ahead. Briefly. 10:05:11 Thank you, the other thing we heard in the last meeting was really a desire 10:05:17 to continue to make progress on our shared city and county goal of 10:05:24 supportive housing. This is the progress that we have made 10:05:28 to date. We plan that the most recent 10:05:32 solicitation that's out on the street and one that I just mentioned that we 10:05:39 released in fall, actually winter, that we will be far on our way to achieving 10:05:43 our goals under the metro bond with permanent supportive housing. 10:05:49 We've made that a priority. As we did with the Portland housing 10:05:54 bond to achieve at least through solicitation and this remains a 10:05:58 priority for the housing bureau. And we would like to -- Dr. 10:06:02 Holt, I think you're not on mute and I'm hearing a little bit of feedback 10:06:04 from you. Sorry. 10:06:06 We'd like to continue to make that a priority with the next phase of our 10:06:10 work. I think we have one more slide. 10:06:19 So I wanted to give you also an update from our last meeting. 10:06:21 We heard you talk about being frankly a little bit creative. 10:06:32 One of the things we have done is put out a call to brokers to see if there 10:06:38 are any properties in particular that may be under development and ready for 10:06:42 earlier occupancy than building from the ground up. 10:06:50 You may recall we used that strategy with 105 east Burnside and able to 10:06:52 bring on a newly built building to house folks within just a few months 10:06:59 of our purchase. So we have initiated contact with 10:07:05 numerous brokers across the city. We are looking specifically for units 10:07:16 that we could examine. So to be able to ensure the 10:07:21 construction topology that would be a building of durability that we want to 10:07:24 inspect for the length of time that we'll be regulating these buildings 10:07:32 and also trying to focus on Poe ten -- potentially smaller units that bring 10:07:35 people off the streets and into housing in a quicker manner. 10:07:40 Thus far, we have not received anything that is of particular interest. 10:07:42 We had some opportunities earlier during the pandemic. 10:07:46 At that point, we weren't sure how the money was going. 10:07:49 So we're not sure if that's going to be a fruitful opportunity, but we at 10:07:54 least wanted to pursue it. And put a call out to see if we could 10:07:56 take advantage of any opportunities that may be wanting to sell. 10:08:04 And I think what our next steps would be is to plan for a full and open 10:08:04 solicitation at the beginning of next year. 10:08:13 So we would be wanting to plan with you a little bit more and bring you back 10:08:18 in September what our thoughts were for that potential solicitation. 10:08:23 We have also, as I said, we do have the metro bond solicitation in process and 10:08:29 would expect that we will have results of that solicitation in October. 10:08:33 There's a possibility that there may be projects that we could not fund under 10:08:37 metro that may be of interest to the Portland housing bond and we've 10:08:38 reserved that right in our solicitation. 10:08:42 But we do not know if we'll take advantage of it or not. 10:08:43 We're very early in the review process for that bond. 10:08:51 I wanted to make sure that you had any opportunity to provide us feedback as 10:08:54 we're thinking about additional next steps and if there's anything that 10:08:57 you'd like to offer to us now, we'd be happy to hear it. 10:08:59 Otherwise, we'll come back to you with a little more detail at the next 10:09:09 meeting. >> Thanks, any comments? 10:09:14 Allan, I see your hand. >> I'm just -- is there a -- I should 10:09:19 know this. What's the time horizon for needing to 10:09:22 spend bond funds? I was going to pop up the auditor's 10:09:24 report. I forgot what year we're in. 10:09:27 Is time a consideration? At all? 10:09:32 >> It is, but I think we're on the timeline. 10:09:39 So we committed to city council and the voters when we authorized the bonds 10:09:47 that we would have funds committed, not necessarily expended but committed by 10:09:50 year seven. And so even though we passed this 10:09:55 measure in 2016, we did not have bond available funds until 2017. 10:09:56 So that's when the clock starts ticking. 10:09:58 >> OK. Great. 10:10:03 Thanks. Yeah, and I appreciate the creativity 10:10:06 and flexibility you are going through. I think when we look at the projects 10:10:10 that have been funded in the past, there's kind of a range, you know, in 10:10:16 those of bond funds, you know, awarded, you know, from 14 to 37 million, 10:10:19 right? So there's a lot of different 10:10:24 opportunities that could present themselves with the amount of funding 10:10:36 that's available. >> Other comments for Director 10:10:37 Callahan? Susan? 10:10:39 >> I had the same question that Allan had. 10:10:43 That's helpful. So it sounds like year seven would be 10:10:47 fiscal year 2023-2024. I hadn't realized it went out seven 10:10:53 years. So that's really still some time. 10:10:58 I see where we're at when the projects come on line and I noticed, some of 10:11:02 them won't be available until like the first or second quarter of, you know, 10:11:05 2023. So I think that's helpful to 10:11:10 understand that timeline. And, you know, I guess in my mind, 10:11:16 thinking ahead, how successful this has been and I just think the P.H.B. staff 10:11:20 are a model for other jurisdictions and groups that are looking on how you 10:11:24 report and how you're transparent. And how you'll be accountable and then 10:11:28 looking ahead to then, you know, we tell the story and then how do we go 10:11:30 after another bond for Portland? That's like my dreams. 10:11:37 So my hope and my dream as we, you know, build these projects and show 10:11:40 people what they can do and who is housed. 10:11:41 Yeah. I think it's very thrilling, very 10:11:46 thrilling to me. >> Susan, thank you for those kind 10:11:49 comments. We would be looking to have our 10:11:54 commitments by next year. And so ultimately, be able to expend, 10:11:59 you know, obviously we forward commit resources and then work for the 10:12:04 development process. But I'm hopeful that next year, we can 10:12:11 finalize our process with a bond and start welcoming folks in in 2022 and 10:12:12 2023. It's going to be very exciting time 10:12:14 period when all of those people get to move into the buildings. 10:12:21 >> Thank you very much. Any other comments or questions from 10:12:31 the oversight committee? We move forward to the project teams 10:12:34 and presentations. You're going to introduce. 10:12:42 >> Yes, I am excited to introduce our project team presentations for the 10:12:46 day. We're going to hear from the project 10:12:51 teams for Joyce H otel and Anna Mann house. 10:12:55 We'll kick off things with the five folks from community partners for 10:13:00 affordable housing who are here to talk to you all about the Joyce Hotel. 10:13:18 I'll let you introduce yourself so whoever is up first. 10:13:25 >> You all have the slides? I'm Jillian and I'm the housing 10:13:32 director here at CPAH. Thank you very much for letting me 10:13:35 talk about the Joyce. It's a real passion project for us and 10:13:44 we're excited to tell you where we're at and what's coming up and I'm joined 10:13:48 by the housing developer at CPAH. She'll be helping out with some of the 10:13:54 details in our presentation today. The Joyce hotel, if you're not 10:14:03 familiar with it, is at the corner downtown, corner of southwest 11th and 10:14:10 Harvey Milk, formerly Stark. It has been a long time hostel and 10:14:15 previously with the folks that resides there reside there on a weekly or 10:14:21 sometimes daily rent schedule. They have shared bathrooms and in 10:14:26 quite a state of disrepair when folks were living there when the Portland 10:14:31 housing bureau acquired it, I think, in 2014 or 2015 and we were very excited 10:14:37 to be awarded this project. We OPTed to preserve the building. 10:14:42 And its brick facade and I don't know if you're familiar with that 10:14:46 particular corner in Portland. But there are four -- I call them -- 10:14:49 there's probably a technical term that I'm not familiar with. 10:14:53 I call them blond brick building. But there's four blond brick buildings 10:14:58 all facing each other that were all built between 1908 and 1912. 10:15:02 This building was built in 1912. And they all really reflect and speak 10:15:04 to each other. And it's not a historic district. 10:15:09 But I think it really has the potential to eventually be a mini historic 10:15:12 district. If you haven't had the chance to go 10:15:15 down to kind of stand around and look at how the architecture talks to each 10:15:19 other between the four buildings, I encourage you to do so. 10:15:24 It's really -- it's a little slice of old Portland that I think is really 10:15:28 important to maintain. So we can go ahead to the next slide. 10:15:40 So we are delivering 66 units of supportive housing in the form of 10:15:46 single room occupancy units. The building previously had 69 units 10:15:50 and it was not possible to do the seismic upgrades that are required for 10:15:59 unreinforced brick building and keep 69 units and not add on a story and get 10:16:03 very, very expensive. Three of the units are historically 10:16:05 located by the fire door. While they're technically units, I 10:16:10 don't believe they're legal units. So that's -- it's going to be a 10:16:15 complete reconfiguration of the floor plans, I mean, really everything like 10:16:18 this. Everything must go. 10:16:25 So either that's on the inside going we're walking through also working 10:16:31 with the state, historic preservation office to see what elements, what 10:16:36 design elements can be preserved, what, you know, what fixtures are original 10:16:41 that maybe we can preserve and reuse. What signs on the outside could be 10:16:46 repurposed into art, so we are working really closely with our consultants 10:16:48 and with the state to try to preserve as much of the history of this 10:16:51 building as we can. And then also deliver just a really 10:16:55 nice place for folks to live. So it will be -- every unit will have 10:17:03 a kitchenette inside the unit. But there will be shared bathrooms. 10:17:05 I think there's three on each floor. We have three service providers. 10:17:08 Partners for affordable housing. A little background. 10:17:11 We do four things. We build affordable housing. 10:17:19 We manage what we build. We provide residence services for our 10:17:22 portfolio and occasionally a building outside of our portfolio and we are 10:17:25 fierce advocates for affordable housing. 10:17:27 What's not on that list is mental health services. 10:17:32 So we've partnered with three organizations to deliver mental health 10:17:37 services for three particular groups. So we have Native American 10:17:40 rehabilitation association, and they will be working with folks that are 10:17:45 dealing with alcohol and drug addiction who are also identified as Native 10:17:48 American. Cascade project, they'll be working 10:17:56 with their clients that are currently dealing with homelessness as well as 10:17:58 H.I.V./aids. These three service providers will 10:18:02 really -- we selected them partially because of the history of the 10:18:04 building. And again, for someone that maybe 10:18:10 hasn't grown up in Portland, this area of town, this particular building 10:18:14 often has folks that would be housing of last resort when folks in the 90's 10:18:17 and 80's were diagnosed with H.I.V./aids and couldn't find a place 10:18:23 to live, this is where they lived. So connecting now with cascade aids 10:18:29 project and NARA to serve the same population but in a way that has more 10:18:31 dignity and hope, it's really exciting. 10:18:34 Those are our partnerships. We'll be working -- we're not working 10:18:41 with coordinated access. They asked us to work with county 10:18:42 behavioral health to house homeless folks here. 10:18:43 That's what we'll be doing. Next slide, please. 10:18:54 So this is our current budget. We were allocated both bond funds and 10:18:59 tax increment financing. So I want to speak to both of those on 10:19:01 the per unit basis because I think it's important. 10:19:11 It's very easy for me to say, we are using $94,000 a unit in total P.H.B. 10:19:13 We're still under that $100,000 per unit cap. 10:19:23 And I'll get to a little bit of what's caused some budget fluctuations. 10:19:29 Some that is worse than others. So right now, we are sitting on a 10:19:35 total project cost of $23.7 million. Those will be again full seismic 10:19:41 upgrade of the building, preservation of the facade, and restoration of the 10:19:44 storefront. So that is what we are working on. 10:19:52 There's no commercial debt. There's no direct funding if this 10:19:56 project. There's a 4% allocation and we're 10:19:59 lucky enough in it's a difficult developed area so we get a 30% boost. 10:20:10 Next slide. Over to Rachel. 10:20:12 >> Well, we are moving along very quickly right now. 10:20:19 We are in for permitting. Permits were submitted mid May. 10:20:23 We are on track to have our permit ready by October. 10:20:31 We have a new lender. We're going to be working with 10:20:31 permanent loan and the construction loan. 10:20:38 We're in the process of due diligence getting ready for any closing in 10:20:43 December. We received early in this decision. 10:20:47 Everything was as expected. Everything is looking great to move 10:20:52 forward. We've also been working pretty closely 10:20:57 with the neighborhood association. We have presented three times to the 10:21:01 downtown neighborhood association. They've been incredibly supportive of 10:21:04 the work that we're doing. So much so that they're willing to 10:21:08 write multiple letters on our behalf as we're going through the land use 10:21:13 process. Some upcoming milestones. 10:21:14 We're going to be going into bidding in mid August. 10:21:20 Followed by the constructability review and construction documentation 10:21:25 wrap-up. And then again, we'll be getting our 10:21:30 permit ready letter in October. Next slide, please. 10:21:36 >> There have been quite a few material changes to the project from the time 10:21:41 of award. When we were awarded in 2019, this was 10:21:45 -- we were also in partnership with Prosper Portland. 10:21:50 In September of last year, at the conclusion of our schematic design 10:21:55 set, Prosper Portland let us know they were not able to continue to 10:21:59 participate in the project. This left about 2700 square feet of 10:22:04 ground floor space unaccounted for as well as a significant budget gap as if 10:22:08 they weren't taking the commercial space, they also were not contributing 10:22:12 additional T.I.F. money. I think anybody here who has been in 10:22:17 that situation can imagine caused several bouts of heartburn. 10:22:23 But we were lucky enough to be able to work through and I just have to 10:22:25 complement Portland housing bureau with being with us every step of the way 10:22:30 and problem solving with us and getting creative about, you know, what are the 10:22:37 solutions going to be? Anticipating in advance a little bit 10:22:43 of, you know, what happens if? So we really and our investor didn't 10:22:47 get spooked. We were able to confidently keep 10:22:48 moving forward. So I guess I want to say thank you so 10:22:53 much. So in that discussion and in that 10:22:59 problem solving process, what we concluded is that it would be best for 10:23:01 the project not to have commercial space at all. 10:23:05 And that the entire ground floor instead of trying to squeeze all of 10:23:11 our providers into half of the space, to really take the entire ground 10:23:16 floor, give folks full offices where they can spend 40 hours a week and 10:23:21 really increase the amount of community space, have a floor plan on the next 10:23:23 slide. The only other thing that's like a 10:23:28 real material change is that we were not able to have top deck plan and we 10:23:34 were not able to meet the requirements of the new Portland code with that 10:23:36 top deck. It had to go. 10:23:41 It was sad and very hard decision. But it was getting cost prohibitive to 10:23:43 keep it in the project. So that we lost that. 10:23:49 Next slide, I can kind of talk you through a little bit of the new floor 10:23:54 plan on the ground floor. Next slide. 10:24:02 Thank you. So this is hugely expanded. 10:24:10 If you look, that kind of first wall there, that was the space that we had 10:24:15 the floor about half of the floor plan and with the first floor plan we have 10:24:23 a full office for our residence services coordinator for CPAH full 10:24:26 time residence services coordinator allocated to this project and three 10:24:28 service providers to have kind of a permanent home. 10:24:36 We've also included a clinic space so that there can be some like on-site 10:24:40 primary care, foot care, vaccinations, that sort of thing. 10:24:43 So there's a little bit of a clinic space. 10:24:48 So that can be used by our service providers or we can kind of bring in 10:24:52 pop-up clinics with some of our other partners that we work with. 10:24:54 So that's kind of exciting to have that space. 10:25:00 And then, of course, just a large and really beautiful commercial community 10:25:04 room that's going to run along the storefront so it has a lot of natural 10:25:10 light and will be very inviting and will have an oven in it so folks, if 10:25:13 they want to make more food, they can make in the kitchenette. 10:25:17 There's an opportunity to make food and to have events in those ground floor 10:25:20 spaces. So I just wanted to share that update 10:25:21 with you. And that's really the biggest change. 10:25:29 What that created was a very large budget gap. 10:25:33 We are now increasing the costs because we were finishing the entire ground 10:25:36 floor. We have less subsidies because we 10:25:41 didn't have as much T.I.F. from Prosper and then, lucky us, at 10:25:50 the end of 2020 right when we were getting that increased budget, the 10:25:53 percent was locked and made up for the budget gap. 10:25:57 We had been really optimistic because we didn't have commercial space, we 10:26:00 would be able to avoid commercial prevailing wage. 10:26:06 We got the prevailing wage determination letter and they 10:26:09 determined that because it is single room occupancy would apply. 10:26:12 There's two reasons. One, I think they were calling it five 10:26:16 stories because of the basement. I think that if that was the only 10:26:19 determining factor, it would make sense to kind of push back on that. 10:26:27 When I pushed back a little bit on the S.R.O., I got -- they cited a more 10:26:35 recent other use appeal on the S.R.O. OK, point taken. 10:26:38 So we have fully increased the total budget about $675,000. 10:26:50 Just about 5%, I guess. And that really is -- accounts for all 10:26:52 of the gap. If we have been able to not have 10:26:56 prevailing wage, we actually would have been able to not have the gap at this 10:27:00 point in the project. So we've come a really long way and, 10:27:05 again, thanks to Portland housing bureau for helping us work through 10:27:10 what was a very large and intimidating financing gap and get to where we are 10:27:12 now where it's reasonable and solvable. 10:27:24 So next slide, please. I think I want to get an update on the 10:27:26 contracting. You're on mute, Rachel. 10:27:36 >> So much for having hit my mute. It's a little bit early for us to 10:27:42 really talking about, you know, the covid certification. 10:27:47 We haven't even gone out to bid yet. We'll be going out to bid in August. 10:27:54 We have, I will say, brought on four contractors already to help us through 10:27:58 design work. Of the M.E.P. teams that we've brought 10:28:03 on already, over 50% are Covid certified that we're feeling really 10:28:09 good about meeting these expectations. In addition, you know, we really are 10:28:14 working hard to include culturally specific partners, our close ties with 10:28:24 NARA, cascade AIDS projects and behavioral health services really 10:28:25 brings a holistic community approach that we need. 10:28:48 Next slide. We've had some issues and challenges 10:28:55 to the project. Due to COVID, there's been specific 10:28:59 furloughs in the department. Permitting guidelines have gone from 10:29:02 four months to somewhere between six to eight months for permitting. 10:29:10 So we really had to scramble to try to get permits submitted much earlier 10:29:14 than we had anticipated in order to be able to meet the closing schedule at 10:29:18 the end of December. In addition, there's also been, I'm 10:29:23 sure everybody has heard about it, a lot of volatility in the commodities 10:29:27 markets. Great example for everyone that works 10:29:32 in development. In March of 2020 per 1,000 board feet 10:29:40 of wood, the cost of $236. It capped out this past June at almost 10:29:47 $1700 per 1,000 board feet. We've seen these kind of commodity 10:29:51 increases across everything from microchips to steel. 10:29:56 Everything is in fluctuation right now so it's made it a little bit more 10:30:02 challenging to keep a balanced budget. Times when we would like for start 10:30:06 reducing our contingency, we just haven't felt comfortable with the 10:30:06 current commodity pricing to be able to do that. 10:30:19 Next slide, please. >> A little bit about the community 10:30:24 engagement work that we've done. We started our community engagement 10:30:29 prior to application. The entire project team including the 10:30:34 contractor, architects and our service providers did a tour of three 10:30:37 buildings that were held by three different organizations that were kind 10:30:41 enough to let us walk through their properties. 10:30:48 So we walked through a central city concern, and a cascada property. 10:30:51 In that process, we engaged staff that were on site and residents that were 10:30:55 on site, and you know, what works, what's not working? 10:31:01 You know, what is your list of like have to have, like to have, dream to 10:31:08 have in order to make this work. So our service provider partners have 10:31:12 provided feedback every step of the way when it comes to the ground floor 10:31:17 design, where you need to have a site line, where we're going to put 10:31:20 cameras. How much, you know, laundry do we 10:31:24 need, you know, all of these factors. And then with the expansion of the 10:31:30 ground floor, we're really able to take a lot of the like to have and include 10:31:30 almost all of it. So that was great. 10:31:36 But we have been engaged in those conversations. 10:31:38 We're engaged in those conversations right now. 10:31:44 We're talking about finishes and colors and trying to be really conscientious 10:31:50 of the trauma informed design and trauma informed atmosphere. 10:31:54 It's really important in a P.S.H. building and any building really. 10:32:00 It works for all of us that there are certain elements of design that really 10:32:03 trigger like our brain to relax and take us -- can actually take somebody 10:32:11 out of their fight or flight, permanent fight or flight response that happens 10:32:13 when somebody has been homeless for a long time. 10:32:15 You can actually mitigate that through design. 10:32:18 That's part of what we're working through now with the finishes and kind 10:32:23 of going over -- kind of doing a round Robin with all of the service 10:32:26 providers and, again, checking in with residents about like what works, what 10:32:27 do you love about where you live? What would you improve? 10:32:37 So that is ongoing. And then just from a CPAH perspective 10:32:40 been adapting our services and our community engagement looks different 10:32:44 right now than it did two years ago. So we've been doing listening sessions 10:32:47 but via Zoom. We hope to be able to do some in 10:32:49 person before we actually start construction. 10:32:55 But that's -- it's kind of pushing a line there of when things are going to 10:32:58 be safe to recongregate. So that is -- I'm happy to answer 10:33:00 questions. >> Awesome. 10:33:04 >> Looking forward to it. >> Thank you, Jillian and Rachel, 10:33:09 appreciate it. What I'm going to do is just call on 10:33:14 each of the oversight committee members and give you an opportunity just to 10:33:14 comment or question. I'll begin with you, Todd. 10:33:20 >> No questions. Just appreciation. 10:33:25 Always look forward to hearing these reports on these projects in more 10:33:28 detail. So especially with like permanent 10:33:31 supportive housing and not super familiar with how it all works. 10:33:33 So very informative for me and I appreciate it. 10:33:35 Thank you. >> Thanks, Todd. 10:33:37 Allan? 10:33:41 >> Yeah, thanks. 10:33:46 I would echo what Todd said about the -- about being so appreciative to have 10:33:52 the project folks here. And one thing I wanted to check in 10:33:56 about and my sense is that you all are doing it with your partnership through 10:34:02 Cascadia aids project. This area has a history that's 10:34:09 important to particularly here the lgbtq plus community that tends to 10:34:11 disappear. One would have been with that ground 10:34:18 floor commercial, right to have that something return there. 10:34:20 I don't think there was anything there now. 10:34:23 It sounds like something that you're paying attention to with that partner 10:34:25 in that area. Am I thinking about that correctly? 10:34:26 >> Yes. Yes. 10:34:31 I mean, that partnership really stood out to us from the beginning as one 10:34:32 that was important to the history of the building. 10:34:44 As far as the club that was there. We have the disco ball so that was in 10:34:47 the building. So we're hoping to somehow find an 10:34:50 artist that can use that and repurpose it into artwork that we can have in 10:34:52 the building. But we do have a disco ball and know 10:35:00 where it is. >> Pretty powerful stuff. 10:35:04 Anneliese? >> That's amazing and just echoing the 10:35:07 appreciation for this presentation. It's so wonderful to really hear more 10:35:12 about each of the projects and I love this piece of oversight committee time 10:35:15 and also just wanted to say, you know, it sounds like there were some hiccups 10:35:19 that were thrown your way. And it sounds like you've navigated 10:35:19 through them really well. Congratulations to that. 10:35:22 And excited to see kind of the next steps on this project. 10:35:34 >> Thank you very much, Susan? >> I'm really impressed at your 10:35:37 ability to pivot from that shocking information about the commercial 10:35:42 space. And I just think it's wonderful what 10:35:45 you're doing. I think in other P.S.H. 10:35:48 buildings we've had a lack of space for staff that have committed. 10:35:55 And for you to commit all that space guaranteed, is really the right way to 10:35:58 approach this project, I think. I think it was a blessing. 10:36:00 I'm sure it was terrible going through it. 10:36:02 But I think it's great what you're doing. 10:36:05 I love the fact that you have the support of the neighborhood 10:36:06 association. That's critical. 10:36:11 And that they're welcoming you and it will be a real resource for that 10:36:15 community. So that that's I feel like right on. 10:36:19 That they're supporting you. I did have one question and I think I 10:36:22 missed this. But there won't be an on-site manager, 10:36:24 is that right? I mean, there won't -- 10:36:25 >> Yeah. Property manager? 10:36:30 >> Yeah. >> Yeah, there will be a 24 hour desk 10:36:32 coverage. >> 24 hour desk coverage. 10:36:34 Oh. And will that be in the ground floor 10:36:35 space? >> Uh-huh. 10:36:36 >> Yeah, OK. So that's great. 10:36:44 I wasn't certain about that. Yeah, I think it's I'm really 10:36:46 impressed by your planning for this project. 10:36:50 And having had a lot of experience with the Joyce, I think it's going to be a 10:36:56 wonderful place to live. I'm really delighted that you put 10:36:59 kitchenettes in the apartment. I'm sure people have told you how 10:37:13 important that is to them. I love the fact that you've asked 10:37:14 about what you like and it's just awesome. 10:37:17 Thank you so much! >> Thank you. 10:37:22 >> Thanks, Susan. Thanks, CPAH for your presentation. 10:37:23 Appreciate you. Have an excellent rest of your day! 10:37:28 And continue to do this incredible work. 10:37:34 We're going to move forward to innovative housing and Anna Mann 10:37:42 House. Hows 10:37:45 >> Good morning. 10:37:52 I'm Sara Stevenson, executive director of innovative housing. 10:38:00 I'm here with our housing developer to share this update about the Anna Mann 10:38:03 House project. This project will create 128 new 10:38:05 affordable homes plus one manager's unit. 10:38:14 We're northeast 33rd and Sandy just on the border of the Laurel Hurst and 10:38:17 Kearns neighborhoods. It's a hidden oasis that not many 10:38:21 people are aware of. 61 of these new homes will be family 10:38:21 sized two and three bedroom apartments. 10:38:29 And 12 of them will be permanent supportive housing for families and 10:38:31 individuals transitioning out of homelessness. 10:38:35 We're creating this new housing by renovating an existing landmark 10:38:36 structure and adding two new buildings to the three acre site. 10:38:43 We've identified some service partners here. 10:38:45 I'll talk about them on the next screen, also. 10:38:49 Can we go to the next screen? I jumped. 10:38:53 We're going to work with service partners that are listed on the last 10:38:57 slide to ensure that these housing opportunities are known and available 10:39:01 to communities of color and others including households with 10:39:04 disabilities. We've got ongoing community relations 10:39:10 or organizational relationships with black parent initiative and community 10:39:14 vision. All of these organizations will have 10:39:19 priority referral during operations. We're working with all of these groups 10:39:23 also during development to inform designs and make sure the housing is 10:39:28 what it needs to be for residents. As a member of the outreach to 10:39:31 residents itself has been a bit capped over the last year because we can't do 10:39:35 all the focus groups. And all of our residents, we can't do 10:39:37 that with technology in the same way that we can do it in person. 10:39:41 There's a photo here. We have started to do resident 10:39:45 outreach meetings again on site. Now that the weather is nice, we can 10:39:50 get outside and do a little bit more of that back and forth. 10:39:51 Community sharing. OK, now to the next slide. 10:39:59 So as far as our schedule and our progress, we're steadily moving 10:40:00 towards a closing date so we can start construction on this project in 10:40:04 November. Earlier this year, we received design 10:40:08 review approval from the historic landmarks commission and submitted for 10:40:11 our permits. Our architect team has responded to 10:40:14 all of the initial comments which is a big accomplishment. 10:40:17 There were a lot of them. And we hope to have our permits in 10:40:20 October. You've heard about that permitting 10:40:24 timeline already from CPAH. It's definitely extended from what it 10:40:28 used to be. Our general contractors have given us 10:40:30 updated costs using real bid numbers for many of the scopes. 10:40:32 So we feel like our numbers are very realistic at this point. 10:40:35 We plan to bid out the full project starting in September. 10:40:42 And we have a November closing date which is important because we've got a 10:40:44 hard acquisition payment due on the property on December 1st. 10:40:53 Next slide, please. We're contracting with the national 10:41:00 association of minority contractors Oregon chapter, to enhance our 10:41:03 outreach efforts to provide technical support to certified subs during the 10:41:10 bid process and we've presented this project at the general meeting so 10:41:18 we've made a lot of subs and as many COBID certified subs aware of the 10:41:21 project already. We did some soft bidding earlier on 10:41:25 the limited scopes of the project in order to inform our numbers. 10:41:29 Because we've been trying to nail down the budget as you heard there's a lot 10:41:34 of fluctuation right now with budgeting. 10:41:35 But we are contracted to continue helping us do that work. 10:41:44 We're also working to tailor a zero tolerance policy for the project 10:41:47 that's going to expand education and expectations for every worker who 10:41:48 comes on this job site. Regardless of who they work for. 10:41:58 We're really focused on the safe jobs site construction goals that are 10:42:03 lining up to try to make that realistic and to do some new things here on this 10:42:04 job site. We're pretty excited about that pilot 10:42:10 program. Finally, next slide, finally for me 10:42:14 and then I'll hand off to Caroline and you'll hear a little bit more. 10:42:18 Our two general contractors and you'll hear more about this. 10:42:26 Are on track to achieve a combined utilization rate of 36% which we're 10:42:29 pretty happy with. We think, you know, we set our goal at 10:42:30 30 and they're going to exceed that. We're very pleased. 10:42:39 Next slide and then I'm going to hand off. 10:42:53 >> Next slide, please. So as people have been talking a lot 10:42:56 about pricing and cost increases and that's definitely the biggest 10:42:57 challenge that we have been seeing in this development. 10:43:04 We've seen some pretty large cost increases both due to some design 10:43:04 changes and pandemic related inflation. 10:43:11 In our case, that increase has led to a gap of about $3 million. 10:43:14 And we are right now working with the city to help us fill that gap. 10:43:18 We've also hit a secondary bump which was that when the costs went up, we 10:43:22 went beyond the bonding capacity of the original contractor we were working 10:43:24 with. So I'm going to talk about both of 10:43:27 these challenges and our strategies going forward. 10:43:29 But let's first look at the numbers. So now the next slide. 10:43:36 So this chart is just showing the numbers for the hard construction 10:43:42 costs for the project. When we first submitted our proposal 10:43:46 for Anna Mann back when it came out, we were looking at an 88 unit project and 10:43:51 construction cost of $13 million. After we got funding, after we got 10:43:55 funded, the zoning changed in a way that allowed us to increase the number 10:43:57 of units. We proposed it to the city. 10:43:58 They agreed this is a great use of the site. 10:44:03 So this is the proposal that we brought to you guys last year with the 128 10:44:08 units and three buildings. We continued to work through the 10:44:09 design change and we made some scope changes. 10:44:16 Some are just the usual changes that happen when you flush out a 10:44:19 preliminary design. Some were changes related to the 10:44:22 requirements for landmarks both the old and new buildings have to meet 10:44:26 landmarks approval. We also continue to do investigations 10:44:29 in the old building that added some costs and there were some 10:44:30 infrastructure that we hadn't written in the budget for. 10:44:33 Plus, as we all know, costs were going up sort of an industry for materials. 10:44:37 So we went back out in November to check and see if we were still on 10:44:43 target. And the pricing came back at that 10:44:47 middle column there, $21 million that we were worried about but we felt we 10:44:54 would be OK. As Jillian mentioned, the tax critical 10:44:57 calculation had changed. So we made some cuts. 10:45:01 We went back out in April thinking the numbers would come down and we were 10:45:05 pretty horrified when the numbers came back at $24 million. 10:45:10 This has been the second problem came up and we realized that Silco that can 10:45:12 be bonded up to $20 million wouldn't be able to manage the whole contract by 10:45:19 themselves. So we thought of a bunch of different 10:45:23 ideas of how to deal with that and came up with the concept of bringing in a 10:45:26 second contractor. Last column there the $27 million 10:45:29 construction number is where we are now with the second contractor, you can 10:45:34 see that the biggest jump is on the cost for the east building which is 10:45:37 the building that we are going to peel off and have the second contractor 10:45:40 work on. There was also a small jump between 10:45:46 there because we added the cost of adding some air conditioning to the 10:45:49 most heat vulnerable units in the project. 10:45:53 After that massive heat wave a few weeks ago, we just felt it wasn't a 10:45:58 luxury anymore. It was really a necessary and need to 10:46:01 include it in the project. That works out to $211,000 per unit. 10:46:04 In hard construction costs. Next slide? 10:46:13 So this rising cost is not as dramatic when you're looking at the amount of 10:46:16 P.H.B. subsidy. Again, when we first came in with a 88 10:46:20 unit project, we were asking for under the $150,000 unit cap. 10:46:25 When we switched it to 128 unit project, that per unit subsidy went 10:46:29 down significantly since we were spreading site costs and acquisition 10:46:32 costs over more units. And basically now, with the new jump 10:46:38 in costs we're back to where we started at about $147,000 a unit. 10:46:42 We are actually asking P.H.B. to give us the maximum award of $150,000 a 10:46:46 unit. And to use that differential as a 10:46:48 special materials contingency. We're just really worried about how 10:46:51 much all these spikes have happened in the market. 10:46:53 It's been really hard to get anyone to give us estimates. 10:46:59 So this contingency would be there to be used only if the materials spiked 10:47:02 again. It would be controlled by P.H.B. 10:47:05 Not by I.H.I. If we don't use it, any part ha we 10:47:07 don't use goes 100% back to P.H.B. Next slide? 10:47:13 So we have an increase in other sources as well to cover the costs. 10:47:21 Significantly the tax credits. We have both housing tax credits and 10:47:26 historic tax credits in the project and between them they cover over 40% of 10:47:29 the total project costs. The one upside of having your 10:47:33 construction costs go up is you qualify for more tax credits. 10:47:37 So even though we are asking for more money from the bond for this, we are 10:47:39 still leveraging sources at about 3 to 1. 10:47:50 The total project cost at this point is $44,000 a unit, that does include the 10:47:55 admin fee and the special contingency and the others that are getting 10:47:55 waived. Next slide? 10:48:02 So when we realized we had a bonding problem with our contractor, we talked 10:48:05 to the city. And they asked us to look at three 10:48:08 different scenarios and the pros and cons of the three different scenarios 10:48:09 and that's sort of the rest of the slides that I'll talk through today. 10:48:15 So the first idea which was our chosen idea is to bring in a second 10:48:18 contractor and split the work. But we did also look at the 10:48:19 possibility of just bringing in a whole new contractor to take over it. 10:48:26 Someone with a higher bond capacity or reducing the project back to the 10:48:27 original proposal. Next slide. 10:48:33 So the scenario we're recommending and the one that is frankly the most 10:48:37 viable is the scenario that to bring in a second general contractor. 10:48:42 This is the lowest cost option. It retains the contractor expertise. 10:48:46 We really want to keep Silco on the job even though their bonding capacity 10:48:49 isn't enough. We chose to work with them because of 10:48:51 their ability to deliver a quality project at a modest price. 10:48:57 This is the fourth project we've done with them. 10:49:01 We trust the quality of their work and appreciate their nimbleness at being 10:49:04 able to deal with the surprises that always come with working on a historic 10:49:07 rehab. They have gained a lot of experience. 10:49:11 They've been working at this for over a year on this building at this point. 10:49:13 They have a lot of just knowledge about the building. 10:49:18 And it would be a shame to lose that. And actually bringing in a second 10:49:20 contractor has been working really well. 10:49:23 They have complimentary skills. And they've been working really 10:49:25 creatively as we sort of work through the dynamic of having two 10:49:29 contractors. Only real downside is it does increase 10:49:34 a little bit of the complexity for us because we'll have to manage two 10:49:37 construction contracts. The biggest bonus of the scenario is 10:49:40 that it actually pencils. So we're excited about that. 10:49:48 Next slide? So this is a visual of how sort of the 10:49:51 shared two contractor scenario would work. 10:49:55 Basically, Silco would retain the bulk of the work and do the site work. 10:49:57 They'd work on the historic building and they would build the new building 10:50:00 in the south. And Todd construction would work on 10:50:05 the building to the east. So in this picture, you can kind of 10:50:10 see the dark blue is the east building which Todd would be working on and the 10:50:13 lighter blue section would be their staging area and the rest of the slide 10:50:19 would basically be Silco so that's the big gray blob in the middle is the 10:50:22 existing building and the building in the south is the new south building 10:50:25 and they have already worked out how they can share staging area and we've 10:50:31 sort of marked how they each would have their own entrances and exits off the 10:50:32 site. They would each have three ways to get 10:50:35 in and out of the site. So we feel pretty confident that the 10:50:42 coordination is going to work and that this is a viable and good scenario to 10:50:43 deal with our problem. Next slide. 10:50:53 Second scenario we looked at is bringing a new single general 10:50:54 contractor. This would require less coordination 10:50:59 but cost the project a lot more. You know, thanks to the recent that we 10:51:03 applied for, we have seen some current pricing on similar projects from other 10:51:08 contractors. So we calculated brought in a single 10:51:13 larger contractor, we would see an additional funding gap of $5 million 10:51:18 and that's after -- assuming P.H.B. put in the maximum they could at 150. 10:51:22 And even if we could find another source in time, we're not sure we 10:51:26 could actually find a space on some contractor's schedule to start work as 10:51:35 quickly as we need to start. So the other scenario we looked at was 10:51:40 reducing the project to 88 units. This would be less complex and we'd 10:51:44 get to retain Silco's experience and it would leave a gap. 10:51:47 We were pretty much at the maximum ask originally and given the cost 10:51:51 increases, we think we'd have about a $3 1/2 million gap. 10:51:56 The biggest drawback of this alternative is just the loss of 10:51:57 opportunity. This is a really wonderful site. 10:52:02 And we're just really excited to be able to bring units there. 10:52:08 And if we pared it back now, there's no realistic way we could go back later 10:52:14 and it would be too disruptive and you have to do splitting into two 10:52:15 ownership entities and it's not really realistic. 10:52:19 We'd kind of lose the opportunity of adding those extra 40 units. 10:52:22 Last slide. So that's our update. 10:52:29 I wish it was all good news. We do have a path forward and super 10:52:31 excited about moving ahead with this really neat and amazing building. 10:52:40 So we can bring a whole bunch of families into this wonderful 10:52:41 neighborhood. >> Thank you very much. 10:52:47 I'm going to do the same approach that we had and give each of the members an 10:52:50 opportunity to engage and ask questions, make comments and we'll go 10:52:52 in reverse order this time. So Susan, that means starting with 10:52:58 you. >> Thank you for the presentation. 10:53:02 I think it's so exciting the number of two and three bedrooms that you have 10:53:05 and bringing families into such a beautiful neighborhood. 10:53:09 To me, that's very exciting. I just had one little tiny question. 10:53:11 Will each building have a different address? 10:53:17 I'm assuming the south building is new, the east building is existing. 10:53:17 Will they have different street addresses? 10:53:23 >> Yes, I believe they will. >> Tiny detail. 10:53:24 Yeah. >> Yeah. 10:53:27 I mean, there's actually different entrances. 10:53:31 You can enter off 33rd and you can enter off a little street in the 10:53:34 back. So there are different entrances that 10:53:36 they can have to have a different address. 10:53:40 >> And you'll have an apartment for an on-site manager for all the units. 10:53:43 >> Yeah. There's actually 129 units and one of 10:53:44 them is a manager unit. >> Great. 10:53:44 Great. Thank you. 10:53:49 I applaud you for your decision to go to two contractors. 10:53:50 It sounds complicated but sounds like the right decision. 10:53:58 So yeah. Innovative housing just has a history 10:54:03 of really also housing some very difficult people. 10:54:07 And knowing how to do low barrier housing so I know you're going to 10:54:10 bring in the people who really need this housing. 10:54:14 And it will be a good neighbor. These buildings will be really good 10:54:14 neighbors for the neighborhood. Great work. 10:54:20 >> Thank you. >> I was going to add each building 10:54:25 will have its own services so each building will have an office for 10:54:26 services. Each building will have its own 10:54:27 mailbox and laundry areas and garbage areas. 10:54:34 And we plan to have two full-time resident services staff at the 10:54:38 property. One focused specifically, we were 10:54:44 authorized through the service provider so one staff dedicated exclusively to 10:54:46 those households. >> Thank you very much. 10:54:48 Anneliese? >> Thank you. 10:54:54 This was a really wonderful presentation. 10:54:57 I was really excited about this project knowing, you know, trying to get 10:55:01 affordable housing into that neighborhood is so hard. 10:55:06 So great to see this project and love the kind of neatness of retaining the 10:55:10 old buildings and adding new ones. It sounds like you found a good 10:55:13 solution on the contracting. Yeah. 10:55:16 For the contracting issue. No real questions. 10:55:19 Just excited and, you know, happy to hear continued updates on this 10:55:20 project. >> Thank you. 10:55:30 Allan? >> Thanks, Dr. Holt. 10:55:32 I agree with other folks. I don't have questions. 10:55:35 I'm appreciative of the project team here. 10:55:40 And the efforts that went through to keep this thing or put it back on 10:55:43 track anyway since it didn't seem like it went on track. 10:55:47 I appreciate the efforts to do that because it's important property. 10:55:51 And answer the questions proactively. I think I would have had a question 10:55:55 did you consider, you know, going back to the original 88 units? 10:55:59 It was nice to have that presented to us and answer those questions and it 10:56:02 looks like this is, you know, as Anneliese said, a good solution, yet 10:56:05 seems very complicated for you all. So thank you for doing that. 10:56:11 >> Thank you, Todd? >> No questions for me either. 10:56:17 Yes, appreciations and I'd echo Susan's comments about the two and three 10:56:22 bedroom units. Again, nice to see the details on some 10:56:23 of these projects and thank you for the information. 10:56:28 >> Thank you. Director Callahan? 10:56:33 I see your hand. >> I just wanted to clarify for the 10:56:38 presentation that I.H.I. is coming to you in the midst of trying to problem 10:56:44 solve with our team, did an amazing job trying to offer solutions to overcome 10:56:48 the cost overruns they're facing and other construction issues. 10:56:49 But we have not yet agreed to that path. 10:56:54 At P.H.B. So I just wanted to make sure that you 10:57:01 were aware of that. We were still working with I.H.I. to 10:57:05 resolve areas that we have concerns, as you've noted, the two contractor 10:57:08 solution. Though extremely innovative does raise 10:57:13 some unique challenges. And frankly, we need to be sure that 10:57:24 as fib -- fidicuries to go through that problem. 10:57:27 We wanted to present everything on the table. 10:57:32 Both I.H.I. and the Joyce will have to come in officially through the process 10:57:33 to increase the amount of contribution. 10:57:40 As you may recall, we set up that process at the very beginning for 10:57:41 determinations of increasing unit size. 10:57:45 If we were going to add units which I.H.I. went through that process. 10:57:48 I think we're hopeful we can work through these issues were we wanted 10:57:52 you to see them in their raw form. But do know that we still have more 10:57:53 work to do with both of these partners. 10:58:02 >> Thank you, any questions or comments from bond oversight committee? 10:58:04 >> I just appreciate that clarification. 10:58:13 I think that from the beginning, there's been so much transparency for 10:58:16 us as bond oversight committee members. 10:58:20 And so yeah, we'll understand your judicious process and hear more about 10:58:26 it. >> Anneliese? 10:58:31 >> Yeah, I want to echo that, thank you for that clarification. 10:58:35 And also, you know, want to reflect back on the very wise decision we made 10:58:37 around those remaining funds in case things came up. 10:58:39 Not saying that's going to happen here. 10:58:46 It's helpful to know that, you know, if needed, if it makes sense, we do have 10:58:50 some contingencies and that was, I think, a prudent decision that was 10:58:55 made a while back. >> Thank you, Anneliese. 10:58:59 These projects, if we increase the contribution to both I'd say is 10:59:04 looking like there will need to be some adjustments we'll downwardly adjust 10:59:07 the remaining bond funds. That presentation was based on the 10:59:10 prior commitments but both of these two projects need to be approved for 10:59:13 additional funds. Even though we won't meet again for a 10:59:16 few months, we will keep you abreast at decision making in real time. 10:59:21 And give you an update as to the -- as to how we're going to work with our 10:59:23 partners to make these projects forward. 10:59:30 That's ultimately our goal. >> Excellent. 10:59:32 Excellent. Any other comments from bond oversight 10:59:36 committee members before we wrap up today? 10:59:41 We've come to the end of our time. I want to thank the bond oversight 10:59:44 committee for the work that you do. And Portland housing bureau for the 10:59:49 work that you're doing in this space. And thanks to I.H.I. for their 10:59:55 presentations. And having to work through this 11:00:00 unexpectedunexpected reality that we're all in at this moment. 11:00:02 One of the things I've been encouraging people to do is to breathe and 11:00:04 stretch. Breathe and stretch. 11:00:11 And what I mean by breathe is to relax in the midst of the intensity. 11:00:17 To find a way to intentionally unplug. And to refresh and to renew and then 11:00:23 to stretch, dynamic to remember that we all rely on strength greater than 11:00:29 ourselves and it's important for us to be in healthy spaces as much as 11:00:32 possible. So thanks for your work and effort and 11:00:34 energy. We meet again October 7th. 11:00:40 At this point, it is planned for Zoom. Hopefully we'll be able to meet in 11:00:40 person. Until then, take care. 11:01:07