09:32:02 I'll begin recording now.
09:32:07 >> Recording in progress.
>> STEVEN HOLT: Good morning, I'm
09:32:11 Dr. Steven Holt, and I have the privilege of facilitating the Bond
09:32:15 Oversight Committee meeting on this Thursday, August 4th, 2022.
09:32:18 Thanks and welcome in to our first hybrid meeting.
09:32:23 It is our first gathering whereby we've got some people in
09:32:27 person, and then we have others who are joining us, like
09:32:32 me, via the web.
So I
09:32:33 appreciate you being in the space today.
09:32:37 It's going to be a little unique because of the dynamics of
09:32:42 working through all the pieces of controlling,
09:32:46 keeping things together, trying to make sure we're capturing what
09:32:50 is said and how it's said.
So I appreciate your
09:32:53 patience.
As we're going through the process.
09:32:57 There you do.
Our hybrid meeting protocols and
09:32:59 tips.
Please be patient and respectful.
09:33:04 So I'm going to do my best to facilitate the process by capturing
09:33:09 those who virtually are interacting -- interacting from the virtual zone, and
09:33:13 those who are in the space.
So I appreciate
09:33:15 that -- your thoughtful regard to that.
09:33:19 Check your speakers and microphone.
I think we've done that, make sure
09:33:23 they're working properly.
And speaking
09:33:27 clearly and maybe a little slower than normal.
09:33:31 Not extremely slow, we're not asking you to draw out your
09:33:36 words, but also not to speak too rapidly where we would
09:33:38 miss what you say.
Try to be conscious of that.
09:33:42 We want to make sure we're capturing all that's communicated.
09:33:46 And then that you mute your microphone when you aren't
09:33:50 speaking.
That you keep mindful of --
09:33:54 that if you're not talking and you begin to talk to someone on the side
09:33:58 and your mic is not muted, it then will pick up the conversation and create
09:34:01 a tone challenge.
Also the potential of feedback.
09:34:05 So make sure you keep your mic
09:34:09 muted.
And then we'd like you to keep side
09:34:12 conversations minimized, period, so you're engaged in all of this
09:34:13 incredible information we're going over.
09:34:17 So you want to lean in.
And introduce yourself before
09:34:19 speaking.
This is different.
09:34:24 Some of us do it on a regular basis, who live in this world of the virtual
09:34:27 world, and we're constantly engaged in meetings.
09:34:31 Others of us don't think about it because we're not doing it as
09:34:33 much.
We're going to ask you to introduce
09:34:37 yourself, even if you are well-known and highly regarded
09:34:42 like the Bond Oversight Committee
09:34:44 themselves.
So we'll ask you to introduce
09:34:47 yourself.
And then virtual attendees, you can
09:34:49 use the chat for tech questions and for public testimony.
09:34:54 Asked so it's a little different, it's a little unique to today's
09:34:58 meeting, but I am confident that we will work through
09:35:01 it seamlessly.
That's my anticipation.
09:35:07 So welcome in to the place.
And I am going to
09:35:10 begin with roll call.
Susan.
09:35:16 >> SUSAN EMMONS: Susan Emmons, I use she/her pronouns, Bond Oversight
09:35:18 Committee member, and I'm attending in person today.
09:35:21 >> STEVEN HOLT: Good to see you, Susan.
09:35:27 Todd?
>> Todd is not with us today.
09:35:29 >> STEVEN HOLT: Okay.
All right.
09:35:33 Allan.
>> ALLAN LAZO: Good morning,
09:35:35 everyone.
Allan Lazo, from the Fair Housing
09:35:39 Council of Oregon I use he/him pronouns and I'm appearing in the virtual
09:35:40 space.
Good to see you all.
09:35:45 Wish I could be in.
>> STEVEN HOLT:
09:35:47 Annelies.
>> ANNELIES KOEHLER: Good morning,
09:35:50 everyone, Annelies Koehler, Portland Housing Bond Oversight Committee
09:35:54 Member, I am here virtually and I use she/her pronouns.
09:35:57 >> STEVEN HOLT: I believe that covers our Bond Oversight Committee.
09:36:02 Excellent.
Let's go to our minutes.
09:36:06 From our last meeting.
April 7th.
09:36:11 I don't know if we need to take a moment to look over the minutes or if
09:36:15 the Bond Oversight Committee has had a chance to read through and if someone
09:36:19 is ready to recommend accepting or adjusting.
09:36:29 >> Susan has her hand up.
>> SUSAN EMMONS: I reviewed the
09:36:31 minutes, I thought they were complete and accurate and I make a motion we
09:36:32 accept them.
>> STEVEN HOLT: Thank you, Susan.
09:36:38 Any second?
>> ALLAN LAZO: This is Allan Lazo,
09:36:41 I'll second.
>> STEVEN HOLT: It's been moved and
09:36:44 seconded.
All in favor -- I'm going to call you
09:36:49 one at a time.
Accepting the minutes as recorded.
09:36:53 Use the signifier eight.
09:36:54 .
Aye.
09:36:57 Susan.
>> SUSAN EMMONS: Aye.
09:37:01 >> STEVEN HOLT: Allan.
>> ALLAN LAZO: Aye.
09:37:04 >> STEVEN HOLT: Annelies.
>> ANNELIES KOEHLER: Aye.
09:37:07 >> STEVEN HOLT: At this point we have a moment for public testimony.
09:37:11 If you do you have a slide?
Our
09:37:14 public testimony affords two minutes per person.
09:37:19 Again, we offer the chat as an option for public testimony.
09:37:24 We would like you to keep your comments to
09:37:28 today's agenda, and concerns related to what is being covered,
09:37:33 provided there are items of concern and things you need to
09:37:37 dialogue beyond the topics of today, we encourage you to reach out to the
09:37:42 staff of the Portland housing bureau.
You can sign up in person
09:37:46 or you can identify in the chat room, the Zoom chat that you would
09:37:51 like to give testimony.
Verbal or written testimony,
09:37:55 again, the chat feature, or you can submit via
09:38:05 email.
Is
09:38:08 there anyone signed up for public testimony?
09:38:12 >> I think we had a couple people signing
09:38:17 up.
>> [indiscernible]
09:38:21 >> Looks like we at least the registration, Dr. Holt, we had a
09:38:24 couple people signing up, I'm not sure if they're with us.
09:38:29 Kim Nguyen and Thomas
09:38:34 Busey.
09:38:39 >> STEVEN HOLT: Kim, are you in the
09:38:44 space?
Hearing no nones, Thomas, are you in
09:38:50 the space?
09:38:59 >> Travis fellows and Matt Cunningham.
>> STEVEN HOLT: I'm sorry, I didn't
09:39:03 catch the first name.
>> Travis
09:39:07 Phillips and Mack Cunningham.
>> STEVEN HOLT: Travis, are you in
09:39:11 the space?
>> -- Holt, they might not be with
09:39:13 us.
These are two of our presenters later
09:39:18 on today.
They may have signed up
09:39:21 erroneously.
And I know they will be joining us if
09:39:23 they're not here already.
>> STEVEN HOLT: That often happens
09:39:27 when there's a presenter who is not familiar with the format.
09:39:32 They'll -- in the -- registering for the meeting.
09:39:36 We'll check to give -- will check giving
09:39:40 public testimony thinking that is their responsibility or assignment.
09:39:44 We will move forward.
09:39:50 We're going to do some bond updates.
We're going to talk about our project
09:39:54 milestones.
Jill Chen, you're going to review
09:39:59 that, after which we'll do the quarterly expenditure report, and
09:40:02 angel will lead that conversation.
Jill.
09:40:06 >> JILL CHEN: Thank you, Dr. Holt.
For the record, I'm Jill
09:40:09 Chen, housing -- preservation manager of PHB.
09:40:14 And I apologize for everybody, I misplaced by order of my
09:40:19 slides so I'm going to go to ask to go
09:40:21 to slide eight first.
Yes.
09:40:25 The reason I wanted to start off with issues and risks
09:40:30 is it colors all of the update about
09:40:34 our predevelopment and our construction and those that are
09:40:39 [indiscernible].
So I highlighted these as some key
09:40:42 issues that we're seeing in our projects.
09:40:46 And just for the committee's information, we
09:40:52 have almost 700 million in
09:40:53 total project costs in predevelopment.
09:40:58 And in construction it's over half a billion dollars of construction.
09:41:02 So it's about $1.2 billion worth of projects
09:41:06 that are in some form of construction or predevelopment.
09:41:11 So the issues and the risks impacts both areas.
09:41:16 The first one is the private activity bonds continue to be constrained
09:41:20 through 2024.
I think I mentioned last time about
09:41:24 private activity bonds and the importance of private
09:41:28 activity bonds to the creation of
09:41:32 4% low-income housing tax credits.
09:41:36 This fortunately for us does not impact the projects that
09:41:41 are already in construction.
And that is from our
09:41:42 2019 bond opportunity [indiscernible].
09:41:47 The private activity bonds, however, do impact two of
09:41:51 our projects in predevelopment.
09:41:55 Alder Nine has private activity bonds,
09:42:01 however, Francis + Clare Place and Barbur Apartments do
09:42:03 not.
This will determine how quickly they
09:42:08 can get the bonds.
The second
09:42:12 issue is cost escalation, about 1%
09:42:16 per month.
What that translates to is
09:42:22 about
09:42:26 150-250,000 dollars of cost increase every month that a project is
09:42:29 delayed.
So when we think about private
09:42:33 activity bonds and the cost escalation, and the uncertainty of that, it just
09:42:39 creates a lot of angst.
The third issue we're facing is
09:42:43 the continued supply chain, sort of subcontractors and
09:42:47 staffing issues.
It has
09:42:52 created some delays in our projects that are
09:42:56 in construction as it relates to when there
09:43:01 was -- certificate of occupancy.
It could be
09:43:08 anything from lumber not being available as quickly as needed,
09:43:14 or certain staff for construction not being available.
09:43:19 What we've seen in other projects that are in the
09:43:22 pipeline, these are primarily the metro projects, is that it is
09:43:28 impacting our subcontractors, in particular
09:43:32 the subcontractors are extremely busy, instead
09:43:37 of having two or three bids, you'll just get one bid, which means you
09:43:41 may not get the best pricing or you may not get as much
09:43:46 of your certified contractors.
So
09:43:50 our equity in contracting, our BMWSB numbers may not
09:43:55 be as good as we are hoping, because they're all
09:43:59 so busy right now.
09:44:04 So what does this really mean?
In many cases our funding
09:44:08 gaps in our projects have been --
09:44:13 become completely in some ways crazy, exacerbated,
09:44:17 and our projects, we are
09:44:23 seeing that, a rough rule, probably about 15%
09:44:24 gaps.
So sits huge.
09:44:28 And they're not necessarily being filled by housing
09:44:32 tax credits.
Because of the constraints of private
09:44:36 activity bonds.
09:44:41 And the last maybe is -- it's a great idea, a
09:44:45 great issue, because of the multiple openings
09:44:48 of projects.
Just for everybody's information, we
09:44:51 have 220 units of PSH opening this year.
09:44:55 It's fascinating, it's wonderful, I'm so thrilled.
09:44:59 But that also has created some difficulties in
09:45:04 terms of 180 units of PSH will
09:45:09 actually be opening and within a
09:45:12 six-week time frame.
This is more compressed than we have
09:45:16 ever seen.
And that is stressing out the referral
09:45:20 system as well.
That time will come in
09:45:25 October, when -- let me make sure I got the names right --
09:45:29 the West Wing will open, the Evans Place
09:45:33 South Project will open, and the [indiscernible] will open.
09:45:39 So in total that's 180PSH units.
09:45:42 Fantastic, but it's creating some issues as well.
09:45:49 >> TANYA WOLFERSPERGER: I just -- the [indiscernible], is a
09:45:53 metro bond project.
>> JILL CHEN: But it's also
09:45:56 [indiscernible].
I just wanted to make sure that
09:46:01 everyone is aware of -- these are the risks and issues that we
09:46:06 are working with our partners in trying to make sure
09:46:10 we can resolve it.
But I wanted to make sure
09:46:14 we set the stage before we go into specific
09:46:17 updates.
Do you want to pull up the dashboard?
09:46:21 I can go through the dashboard first.
09:46:28 What we have here is the project bond
09:46:33 update report.
And you'll see
09:46:37 that most of this is --
09:46:41 it's in the construction.
Most of our projects are in
09:46:45 construction.
And -- but the good news is we're
09:46:49 opening more and more projects, so that
09:46:53 you'll see that the green and the sort of darker blue
09:46:58 will shift and the light
09:47:02 blue will flip.
For those of you who may have the big
09:47:06 -- have the big sheet of paper that has
09:47:11 the project progress dashboard, you'll see that in
09:47:16 the notes there's a number of highlighted notes,
09:47:21 so on our projects in
09:47:26 predevelopment, Alder Nine and Francis + Clare Place both have
09:47:30 gaps.
Alder has a bigger gap, as I
09:47:34 mentioned, in the report, it's a funding gap of 5.7 million.
09:47:39 So we are working with them to go and
09:47:45 apply for funding through market cost offset funds, we're working
09:47:49 with them to apply for clean energy fund,
09:47:52 Portland Clean Energy funds and requesting additional support.
09:47:56 So we're all in the process of working through
09:48:04 that.
09:48:09 We're working also trying to figure out Barbur Apartments.
09:48:14 It had a $9 million gap in which
09:48:18 they apply to [indiscernible], and they
09:48:22 were notified just this week that they did not receive
09:48:26 the funds.
So we're going to be speaking with
09:48:30 them about what are some -- their thoughts as well as ours.
09:48:34 So I think those are the three projects that
09:48:37 are at greatest risk because they're in predevelopment.
09:48:41 A number of other items, I did want to highlight,
09:48:45 we have a grant opening
09:48:51 at Cathedral Village on September 20th, and
09:48:53 I want to invite all the bond ore sight committee members, there will be
09:48:57 a big celebration between of 2:30-4:30.
09:49:04 Some other notes, some of
09:49:08 our projects that are in construction actually received additional
09:49:10 funding.
So that's great news.
09:49:16 The Joyce received some additional, over
09:49:20 a half million dollars,
09:49:25 and the [indiscernible], their appeal
09:49:29 to the National Park Services for the tax credits were
09:49:32 accepted.
So they got historic tax credits, and
09:49:36 that's great news, it will help them
09:49:40 do the stuff and potentially for us to have some of our bonds
09:49:44 back, returned back.
So fingers crossed.
09:49:51 Let's see.
I think you all have seen this
09:49:55 slide before about the wonderful work that our partners have
09:50:00 done.
And the fact that
09:50:05 we are -- all I can say is it's great to see we have achieved so
09:50:07 much more than what the citizens asked us for.
09:50:14 Next slide.
09:50:17 Great.
In looking forward, we have a number
09:50:22 of openings, can and in
09:50:27 total throughout the city it's
09:50:32 587 units.
The first one that has already opened
09:50:36 is Crescent Court that opened in May.
And
09:50:40 that's 138 units.
Hayu
09:50:48 Tilixam and Cathedral
09:50:52 Village, One Is -- and cathedral village
09:50:57 is 110.
And Then There Is
09:51:01 a -- I -- the Emmons Place
09:51:07 building, 48 units,
09:51:11 and Starlight, with 100 units, of which 70 is
09:51:13 PSH.
That's in October.
09:51:18 And the last one in December is Las
09:51:24 Adelitas with 141.
So these are
09:51:26 some of the individuals.
Next slide, please.
09:51:34 The rest of the buildings will be
09:51:38 opening in '23-24, that's
09:51:43 Aurora in February, with 93 units.
09:51:48 The Joyce is 66 units in April.
09:51:53 In May we have two, which
09:51:59 is ennews Place north building and
09:52:02 Anna Mann.
09:52:07 And then 3000 Powell, a month from December, and
09:52:11 they'll now open in January 2024, that's
09:52:15 206.
So without further ado, I hand it over
09:52:20 to my colleague Angel.
Oh, do you
09:52:26 want to [indiscernible]?
>> We're running a little behind
09:52:28 schedule, I'll leave it up to you, Dr. Holt.
09:52:31 >> STEVEN HOLT: I was just going to say it would be great to open it up to any
09:52:35 questions or comments from the oversight committee.
09:52:40 I understand we're time challenged, but any
09:52:44 questions or comments, Annelies?
>> ANNELIES KOEHLER: No, none for
09:52:47 me.
This has been a really great overview
09:52:50 of understanding the exciting opportunities in front of us as well
09:52:52 as the current challenges.
>> STEVEN HOLT: Thank you very much.
09:52:57 Allan.
>> ALLAN LAZO: Thanks, Dr. Holt.
09:53:02 I just have a quick question about, I hope it's quick,
09:53:06 about the -- I really appreciate this sense around talking about issues
09:53:10 and risks.
You talk about predevelopment phase of
09:53:13 all these projects, the total is about 1.2 billion.
09:53:17 We've got a smaller percentage of that that is at risk for the actual
09:53:20 bond, right?
So we often talk about the projects in
09:53:25 their totality, but the exposure of the bond itself is significantly smaller
09:53:29 than that.
So what -- it's just the three
09:53:33 projects in predevelopment, then, and the two that have a funding gap
09:53:37 have some potential exposure there.
Is that -- am I cashingizing
09:53:39 that -- characterizing that right?
>> JILL CHEN: Yes.
09:53:44 I should clarify, the 1.2 billion, over
09:53:48 half of a billion is in construction.
09:53:52 So that risk is mitigated.
In
09:53:56 terms of construction risk or cost increase risk.
09:54:00 It's the predevelopment that PHB sees, and it's
09:54:05 really in the predevelopment of
09:54:10 the three Alder Nine, Francis + Clare, and Barbur
09:54:14 Apartments that are at risk.
09:54:19 >> ALLAN LAZO: Thank you.
That looks like it's about 150 million
09:54:23 in total project costs across that predevelopment phase, of which the
09:54:28 bond funds we have invested there are
09:54:32 about 450,000?
>> JILL CHEN: No.
09:54:36 Our total investments in the
09:54:39 bonds --
>> ALLAN LAZO: In predevelopment.
09:54:43 >> JILL CHEN: Oh, predevelopment, yes.
It's not much because we've only
09:54:49 provided -- it's right now about 2 million, because we provided
09:54:53 $1 million predevelopment loan to Alder Nine and I believe we're working
09:54:58 on a Francis + Clare predevelopment loan.
09:55:04 We have not granted one to Barbur Apartments because the gap
09:55:06 is so large.
And we're waiting for the
09:55:08 [indiscernible] position.
>> ALLAN LAZO: Thank you.
09:55:12 >> STEVEN HOLT: Susan.
Comments, question?
09:55:14 >> SUSAN EMMONS: Yeah.
Very exciting report.
09:55:19 My question, or just statement about the 180PSH units opening in
09:55:23 such a short time frame.
My understanding from
09:55:27 the organizations that are working on these is that they staffed up
09:55:30 and they're prescreening people in preparation.
09:55:35 It's still a big lift, but I think there's a lot of planning going
09:55:39 on, and as it's spread across organizations, to
09:55:42 make sure that they have people screened and ready.
09:55:47 >> JILL CHEN: I think they're having people screened, ready, and
09:55:51 also working with Home Forward to make sure the
09:55:55 Section 8s are available and they have gone through that, and we see
09:55:59 [indiscernible].
We've been working, Jennifer, myself,
09:56:03 the joint office team and the Home Forward team has been
09:56:07 having monthly meetings on this.
09:56:11 >> STEVEN HOLT: Any follow-up, Susan?
>> SUSAN EMMONS: No.
09:56:13 I think that's right.
Sounds great.
09:56:15 >> STEVEN HOLT: Excellent.
Thanks, Jill.
09:56:20 We will will go on to Angel.
>> ANGEL LANDRON-GONZALEZ: Good
09:56:22 morning, everyone.
Can you hear me okay?
09:56:24 >> STEVEN HOLT: We can.
>> ANGEL LANDRON-GONZALEZ:Aweso me.
09:56:28 My name is Angel,
09:56:32 the finance and accounting manager for the Portland Housing Bureau.
09:56:35 My pronouns are he/him, and I'm Latino.
09:56:40 So let's go over the expenditure report highlights be as
09:56:45 of June 30th of 2022.
09:56:52 So the suspended versus committed amounts have continued increasing
09:56:56 on ongoing constructions.
Compared with the previous
09:57:00 report, the projects creates by
09:57:05 26.7 million, equivalent to
09:57:09 10.16%.
And the commitments have increased by
09:57:14 30 million, equal to 11.45%.
09:57:18 The reserve remains at
09:57:24 167,000, and the net interest and credits at
09:57:29 2.28 million.
2.28 million.
09:57:32 Our plan to be used for future projects.
09:57:41 After that I can get it back to Dr. Holt.
09:57:46 >> STEVEN HOLT: Thanks, Angel.
I'm going to go, as I just did,
09:57:48 through the committee and ask if there are any questions or comments.
09:57:51 Susan, beginning with you.
>> SUSAN EMMONS: I don't have any
09:57:52 questions.
>> STEVEN HOLT: Thank you.
09:57:57 Annelies?
Right as you take a drink, right?
09:57:58 >> ANNELIES KOEHLER: I don't have any questions either.
09:58:00 This was pretty clear.
Thank you.
09:58:05 >> STEVEN HOLT: Sp Allan?
>> ALLAN LAZO: I don't have any
09:58:07 questions at this point either, thanks, Dr. Holt.
09:58:09 >> STEVEN HOLT: Thank you.
Excellent.
09:58:12 We will keep moving forward with our next section.
09:58:17 Project team presentations.
09:58:20 Slight, Central City Concern, and Francis + Clare Place.
09:58:23 Let me say this, I know Tanya you're going to run us through it.
09:58:27 We have roughly gone over about eight minutes.
09:58:32 I'm not asking people to rush, but be
09:58:34 concise, please, in your commentary.
Thank you.
09:58:37 >> TANYA WOLFERSPERGER: Thank you, Dr. Holt.
09:58:42 Hi, I'm Tanya, with PHB, she/her pronouns.
09:58:46 I just want to start us out and introduce our project
09:58:48 teams.
We've invited two teams to come and
09:58:52 present to us today.
Two projects that are at different
09:58:58 faiths, one is the Starlight project, which is about to
09:59:02 open in a few months, and then you'll hear from the team
09:59:06 for Francis + Clare Place, which is in predevelopment, one of our three that
09:59:11 received an award most recently.
So a little bit different templates
09:59:15 and formats for these presentations, but really excited that these two
09:59:19 teams are able to join us today and give us some updates on what's
09:59:23 going on with these projects.
So I will hand it over
09:59:27 first to the team for the Starlight project, I think we
09:59:32 have Brandon and Mary joining us.
I will guide your slides
09:59:36 at your command.
09:59:39 >> BRANDON: Good morning, thanks for having us this morning.
09:59:42 I'm the development project manager with Central City Concern.
09:59:46 And I'm joined by my
09:59:49 colleague, I'll let her introduce herself.
09:59:53 >> MARY-RAIN: Thank you for having us, we're excited to provide this
09:59:58 update regarding the Starlight.
10:00:02 I'm senior -- at Central City Concern.
10:00:06 >> BRANDON: We're here to talk about the satellite,
10:00:10 formerly the West Wind, located in old town.
10:00:15 Tanya, can you go to the next slide?
CCC is serving
10:00:19 as the developer and owner, and will be property manager of this property
10:00:21 as well.
We have an external service
10:00:26 partnership with NARA, the Native American Rehabilitation Association,
10:00:30 CCC will also be serving as a general supportive services provider in
10:00:34 addition to providing specific services for African
10:00:38 Americans through CCC's
10:00:42 Imani Center, flip the script, and
10:00:47 KAribu Programs.
We're Scheduled for an October 25Th
10:00:52 Substantial Completion.
As Well
10:00:54 As Ongoing Lease-Up Activities Are Ongoing.
10:00:58 We Met with JOHS on the 27Th of July, Working
10:01:03 Through Our MOU with NARA and
10:01:08 JOHS, We Have Ongoing Hiring for Supportive Services Staff As Well As
10:01:12 building staff, and we'll begin referral screenings at the end
10:01:16 of August.
We have a tentative
10:01:20 November 15th date for our formal grand opening event.
10:01:25 Next slide.
10:01:29 The building is seven stories, with 100 unions,
10:01:34 72SROs and 28 studios.
Eight of the studios are what
10:01:38 we refer to as fair market units, restricted at 60%
10:01:43 AMI, but we'll be leasing them at 50% AMI, this more affordable
10:01:47 rent level is more achievable for our residents as 60% rents for
10:01:51 efficiency studios like this can often approach market
10:01:55 rent levels.
70% of the SRO units will be supported
10:02:00 by project-based so muchers through home forward, for residents with no
10:02:04 income to extremely low income where the tenant's
10:02:06 portion of the rent ised KAribu at 30% of their income.
10:02:10 Our target population is chronically homeless, as well as African American
10:02:15 and Native American and Alaskan Natives with 20 of the voucher units
10:02:19 set aside for NARA's clients, and 20 for
10:02:22 CCC's African Americans serving programs.
10:02:27 The remaining units will be nonvoucher units, rented
10:02:31 to folks with incomes under 30% AMI.
10:02:35 Our on-site amenities on this space will be a resident art
10:02:39 space, we've got ample on-site bike parking, a private
10:02:44 courtyard, a fitness room, large community kitchen, resident lounges on
10:02:48 every floor, flexible classroom space, and 24-hour
10:02:51 staffing.
Through CCC.
10:02:55 You can see some of the pictures on the right of some renderings of what
10:02:59 the interior will look like.
Design features on the
10:03:03 building, we're targeting an Earth Advantage Platinum,
10:03:05 Certification and We're on Track for That.
10:03:10 We upgraded during construction to a 40 kilowatt solar
10:03:15 array, we have eight ADA
10:03:21 units, and as well as taking advantage of the central commercial zoning, we
10:03:25 have no on-site auto parking, and we're right
10:03:28 along the MAX line, the green and yellow line.
10:03:33 Next slide.
I'll
10:03:38 pass this off to Mary-rain.
>> MARY-RAIN: Thank
10:03:42 you.
Very timely as we were hearing from
10:03:46 the panel discussion earlier, committee discussion regarding this exciting
10:03:50 influx of new PSH units via the investments
10:03:54 coming to fruition.
So we are very excited
10:03:59 to be partnering with the joint office, 70 of the units
10:04:02 are coordinated access direct referrals.
10:04:07 We've held civil meetings with the joint office, and our
10:04:11 service partners, and we're also in very good communication
10:04:14 with Home Forward.
This project will involve many
10:04:19 partners coming together to make sure that the lease-up is smooth and
10:04:24 we are fully utilizing our six-month timeline to make
10:04:28 sure that we're getting all 70 of the PSH units filled
10:04:32 with the eligible tenants.
So you see here our three strategies,
10:04:37 again, coordinated access being the primary strategy for the coordinated
10:04:40 access referral units.
And then we do have the said-aside of
10:04:44 40 units for a culturally specific referrals, so those partners are
10:04:49 also working closely with joint office to make sure that their clients
10:04:53 are on the coordinated access list.
And will be
10:04:57 essentially rise can to the top as we undergo this
10:05:00 lease-up process.
And then we're also in conversation
10:05:05 with joint office and our partners
10:05:09 around somewhat of a pilot approach to
10:05:12 geographically specific outreach here in Old Town.
10:05:17 We have, as everyone those, continued to have a
10:05:21 concentration of chronic homelessness here in Old Town, so to the extent
10:05:26 that we can dovetail our outreach
10:05:30 efforts to find folks that fit into these other
10:05:34 categories or can be referred to the coordinated access
10:05:39 system, during initial lease-up, and ongoing, we would like
10:05:43 to take the opportunity to make a little bit of a
10:05:47 targeted outreach approach here.
10:05:52 >> BRANDON: Thanks, Mary-Rain.
10:06:01 >> MARY- RAIN: We're ready
10:06:06 for the next slide.
>> BRANDON: With that T. our general
10:06:10 contractor is Walsh Construction company, and we're working with
10:06:14 architects, a women-owned business enterprise, as well as
10:06:19 GLI advisors of the third party construction manager.
10:06:23 As of the end of last month we were at about
10:06:27 71, 72% complete construction.
If you go by the building, siding
10:06:30 is up and we're working down from the top on the interiors.
10:06:35 So regarding our equitable contracting goals and
10:06:41 outcomes, our hard cost contracts are
10:06:43 just exceeding the 30% goal at 31.65%.
10:06:48 And our professional services and soft costs
10:06:51 goal, we've pretty significantly succeed the at 52%.
10:06:56 With MWESB contracts.
Next slide.
10:07:03 So regarding apprentice-level and
10:07:08 journey-level trades people on site, our
10:07:12 apprentice-level hours for people of color and women, pretty
10:07:17 significantly exceed the PHB goals with
10:07:23 39% POC, apprentice, and
10:07:27 then 13.5% women apprentice-level trades.
10:07:31 And then regarding journey-level hours, we've
10:07:35 pretty significantly exceeded the POC goals for
10:07:40 journey-level trades, and we're just under
10:07:44 the women journey-level trades, and we're actually just
10:07:48 an update on that element, we're going to be
10:07:53 getting a new apprentice -- a new journey-level finish carpenter on
10:07:57 site with Walsh RDF, so that should help boost that number a
10:08:01 little bit.
And then also wanted to
10:08:06 highlight Julie and Xavier who are pictured here, they came
10:08:10 out of the Constructing Hope Program,
10:08:14 a nonprofit organization, a preapprentice program that helps folks
10:08:19 that are low-income coming out of incarceration, coming out of
10:08:21 homelessness and addiction get into the trades.
10:08:24 Julie and Xavier were graduates of this program.
10:08:29 Julie is now our site forewoman with Walsh
10:08:34 RDF, and Xavier is also with RDF.
Both have been
10:08:36 working on the Starlight in various capacities.
10:08:40 And it's just an awesome program that was highlighted, there was a video
10:08:45 that came out, and in the presentation I sent over to Tanya, the logo is
10:08:49 linked to a great video, if you get a chance, I highly
10:08:53 recommend checking it out.
Just an awesome partnership and
10:08:57 highlighting the great work that Walsh has done and what's contributing
10:09:00 to the Starlight's construction.
Next slide.
10:09:06 I'll let Mary-Rain take this one as well.
10:09:11 >> MARY-RAIN: A recap of our design
10:09:16 engagement activities and I'll talk about how we
10:09:20 kept let it going to current day.
During the design, we did do targeted
10:09:24 outreach and engagement with the Old Town Community Association, the
10:09:26 neighborhood and business association here in Old Town.
10:09:31 We did outreach to our tenant advisory committee here at CCC, which
10:09:35 is comprised of residents of many of our buildings throughout Portland.
10:09:41 And then maintained regular updates and engagement with
10:09:43 our neighbors surrounding the building.
10:09:47 As we've mentioned, our service partnerships include NARA and our
10:09:50 culturally specific African American serving programs here at CCC.
10:09:55 So those partners have all been engaged ongoing
10:09:59 with design, service design, and now as I
10:10:03 mentioned, engaged with the lease-up and referral strategy for the building
10:10:07 as it nears opening.
In terms of what we heard that we were
10:10:12 able to pull through into the design, we heard from the neighborhood
10:10:16 that a ground-floor community commercial amenity, that could be
10:10:18 focused on access to food would be important.
10:10:22 And so we were able to carve out
10:10:27 approximately 1,000 square feet on the ground floor that we are
10:10:43 looking for a food-related tenant to come into the building and provide
10:10:43 that service more broadly to the neighborhood.
10:10:43 We heard from residents that an outdoor space and exercise space, and we have
10:10:43 provided a gym within the building would be important, as people
10:10:46 exit homelessness and continue a journey towards
10:10:49 healing.
We also heard about, for the
10:10:53 single-room occupancies, I can keep going, even though the slide went
10:10:58 down.
That an ability to cook, expb so small
10:11:02 kitchenettes have been added to the design, for each of the
10:11:04 single-room occupancy units in the building.
10:11:10 So in terms of just how we've kept that all flowing, again, we've
10:11:15 continued to engage throughout the process, and now as we
10:11:19 near opening, it -- we are
10:11:23 excited to be able to demonstrate how we've been able to pull those
10:11:27 themes through in terms of the amenities and the features that we
10:11:28 heard from the community would be important.
10:11:33 >> STEVEN HOLT: I hate to interrupt.
We've got about three minutes left.
10:11:40 >> MARY-RAIN: Next slide, please.
10:11:54 We're ready for any questions you may have.
10:11:57 >> STEVEN HOLT: I will take the committee through the process of
10:12:01 identifying the name and giving you an opportunity to -- Annelies.
10:12:02 >> ANNELIES KOEHLER: Yes, thank you Dr. Holt.
10:12:07 I'm actually curious if you guys can speak a little bit more
10:12:11 to the geographic location, like wanting to surf people
10:12:15 directly in Old Town.
I haven't seen that strategy that
10:12:19 often, so just speaking to why you decided on that and how it
10:12:24 interact with the other strategies.
I think it was three slides ago or
10:12:28 something.
>>
10:12:32 MARY-RAIN: I'm happy to speak to that more.
10:12:37 Really the concept was brought to us by the joint
10:12:41 office, and they asked if we would be willing to sort of, again, sort of
10:12:45 pilot, we're not necessarily officially making this eligibility
10:12:49 criteria, but to the extent that we as CCC can utilize
10:12:53 our outreach team, and through our partners, think about
10:12:58 a strategy where we can do outreach for people
10:13:01 living in homelessness here in old town, and point them to, hey, here's
10:13:03 how you get on the coordinated access list.
10:13:07 And really not just about the Starlight opening, but in
10:13:12 general, I think this is an important opportunity to do
10:13:16 a little bit more targeted outreach so that we're letting
10:13:18 people know.
Housing opportunity is available to
10:13:24 you, if you follow these steps and get yourself on the coordinated access
10:13:28 list.
Again, not really an official
10:13:32 criteria, but something that we're wanting to pilot and see if we can
10:13:34 make some impact through the project opening.
10:13:40 >> STEVEN HOLT: Thank you, Annelies.
Allan.
10:13:43 >> ALLAN LAZO: Thank you, Dr. Holt.
I don't have any questions, but just a
10:13:46 quick comment on -- and thanks for the presentation.
10:13:50 I think that, particularly the community engagement update slide
10:13:55 highlights connecting the target populations, the priority populations
10:13:58 for the bond and the outcomes you're seeing, so thank you for the work you
10:14:02 all are doing.
>> STEVEN HOLT: Thanks, Allan.
10:14:03 Susan.
>> SUSAN EMMONS: Yeah.
10:14:08 Great presentation, exciting project.
I had a
10:14:10 question about how you're heating and cooling the system.
10:14:15 I know another building is putting in a heat pump, which means the
10:14:16 smaller units will have air conditioning.
10:14:21 I was thrilled to hear that and I wondered if you're doing anything like
10:14:26 that at the Starlight.
>> BRANDON: Design was mostly through
10:14:31 permitting when the 2021 heat wave came
10:14:33 through.
And the wild smoke as well in 2020.
10:14:39 So what we ended up doing to accommodate the new
10:14:43 PHB requirements for cooling was we beefed up the
10:14:47 in-unit electrical capacity, as well as we're going to be investing in
10:14:52 portable AC units, because only -- common area
10:14:57 cooling and temperate air in the units was kind of where we
10:15:01 landed at the -- at permitting, and to go in and add a full
10:15:05 system would have been not
10:15:08 feasible, given where we were in predevelopment and starting
10:15:12 construction.
And so we're going to be giving
10:15:17 portable AC units and window ports
10:15:21 for the window set-ups that we have.
So that's how we're handling
10:15:24 it.
But as you mentioned, we're doing a
10:15:29 centralized heat pump system in one of our current under
10:15:33 predevelopment projects, so on that's probably --
10:15:39 that's probably a path we're going to be going with min up splits in other
10:15:43 units as well.
10:15:48 >> STEVEN HOLT: Thank you very much, Central City, appreciate the
10:15:50 presentation.
Very well done within our time frame,
10:15:52 I appreciate it.
Thanks for being concise.
10:15:56 I will now move it to the next presenters with the same instruction.
10:16:01 You've got about 10 to 12 minutes to
10:16:02 present so we can give room for questions.
10:16:08 Francis + Clare.
10:16:15 >> MAC: Good morning, everyone.
My name is Mac Cunningham, and
10:16:19 I am a member of Catholic Charities Community Development
10:16:24 and Housing Team and I'm here with Travis
10:16:27 and Jill from Edlen & Co.
We're happy to present an update on
10:16:30 one of our developments, Francis + Clare Place.
10:16:34 First for those of you who are unfamiliar with Catholic Charities,
10:16:37 we provide a wide array of services for our clients.
10:16:42 The including but not limited to migration services, financial
10:16:47 empowerment and planning, behavioral health,
10:16:51 and intercultural counseling.
As well as housing and homelessness
10:16:54 services, which we'll focus on a little bit today.
10:17:02 We operate all over the state, currently we have over
10:17:06 400 units of affordable housing throughout the City of Portland,
10:17:10 with more in development, both in the City of Portland and throughout the
10:17:14 metro area and state.
Francis + Clare Place,
10:17:18 though, which we're here to talk about today, will be located at southeast
10:17:22 11th and Stark on the St. Francis of
10:17:27 Assissi campus in the Buckman neighborhood.
10:17:31 It will be adjacent to the Francis Park
10:17:33 apartments, which is also a Catholic Charities property.
10:17:40 Francis + Clare Place will feature 61 units with wrap-around
10:17:44 services.
Restricted to those who are earning
10:17:48 30% of area median income or lower.
The unit mix will
10:17:52 primarily be studios with seven one-bedroom apartments.
10:17:56 All will have rental assistance to ensure that no resident pays more than
10:18:00 30% of their income in rent, to ensure that rents are
10:18:04 affordable.
At this time we anticipate
10:18:08 housing between 61-68 residents, and we'll refine this number as we
10:18:12 get closer to lease-up.
Services will be provided
10:18:17 by Catholic Charities as well as the Native American Rehabilitation
10:18:21 Association, otherwise known as NARA.
We will have staff on site
10:18:26 24/7, and provide residents with case managers and peer support
10:18:31 specialists in addition to errant services that Catholic Charities
10:18:34 offers at all of our properties.
If residents need services which are
10:18:39 not provided by Catholic Charities or NARA, those will be made via referrals
10:18:41 and will support residents in accessing those services.
10:18:48 Throughout the development of this project, and as we prepare for
10:18:52 lease-up down the road, we will have -- we have had and will continue to
10:18:56 focus our outreach to communities who are overrepresented and in the
10:19:00 homeless and houseless population in the areas surround can Francis + Clare
10:19:05 Place, which according to recent point in time counts, include
10:19:09 those who identify as Native American or Indigenous, and
10:19:12 Black or African American.
Next, please.
10:19:18 Before I dive into the project machining, I'd like to point out a
10:19:22 proposed site plan.
At the bottom right corner of the
10:19:26 slide showing where Francis + Clare Place will sit in
10:19:32 relation to Francis + Clare Commons and the existing St. Francis
10:19:36 church which will remain on site.
With a total project cost of
10:19:41 just over $24.5 million, financing for Francis + Clare
10:19:42 Place is provided by the following sources.
10:19:47 About 8.4 million in Portland housing bond funding.
10:19:53 Over $tin.7 million in low-income housing tax credit
10:19:56 equity.
Nearly 3 million via permanent loan.
10:20:02 And 2 hundred 75,000 in grants, please forgive the
10:20:06 rounding error.
Other sources not pictured include
10:20:11 SDC waivers, deferred and recruited developer fee,
10:20:15 and construction loan.
As you can see on the slide, currently
10:20:19 have a gap of roughly 152,000 dollars.
10:20:23 Which we are working to address via a variety of strategies,
10:20:27 which include getting more grant funding, our estimate
10:20:32 above $275,000 is based on a very conservative estimate of what
10:20:36 we could be awarded via metro's TOD programs
10:20:37 and Oregon's multifamily energy program.
10:20:42 We're also working to see if we can increase our
10:20:46 pricing, we're in preliminary discussions with an investor to get a
10:20:50 letter of intent which would increase our tax credit pricing by
10:20:56 roughly 1½ cents.
We're also looking at applying for
10:21:00 Portland Clean Energy funding.
In preparation for that, we're
10:21:03 engaging the a solar consultant to review the feasibility of adding solar
10:21:08 to the project scope, in addition to other design choices which could
10:21:09 increase the sustainability of the building.
10:21:15 Overall, though, funding will -- via the Portland housing bond
10:21:18 is being leveraged roughly three times to support this development.
10:21:23 Next slide, please.
Currently we are in
10:21:28 predevelopment.
And reaching about 50% design
10:21:32 development point.
And that is set to be issued in the
10:21:36 coming days.
We are super fortunate as well,
10:21:40 though, to have a super strong team for this development, which is being
10:21:44 designed by our architect, Holst, it will be built by our
10:21:49 general contractor, O'Neill/Walsh Community
10:21:53 Builders, who is also the general contractor for the adjacent
10:21:56 apartments.
Development and support is being
10:22:00 provided by Edlen & Co., with wrap-around services by Catholic
10:22:04 Charities and NARA.
Who is also assisted with our
10:22:07 engagement.
Last but not least, we're also
10:22:12 partnering with AfroVillage who will be a referral partner.
10:22:17 Leading up to this presentation we have already had our early
10:22:21 assistance, and design advice request meetings with the City of Portland.
10:22:26 And in the coming months we'll be submitting for a land use and
10:22:30 design review application in September, submitting for building
10:22:34 permits in November, O'Neill/Walsh will begin
10:22:38 requesting bids starting next March, with a financial closing and start of
10:22:42 construction in June 2023.
We're estimating roughly 12 months
10:22:45 for construction.
From here, I'm going to pass things on
10:22:48 over to Travis.
And next slide.
10:22:52 >> TRAVIS: Thanks, Mac.
So just a
10:22:56 couple notes that I wanted to offer up to you for changes that
10:23:00 you may notice from prior versions of this project
10:23:05 that were presented in our application and that you may have seen at
10:23:07 previous stages.
So a couple things here.
10:23:12 The design of the property, we actually flipped the building to face
10:23:17 southeast 11th.
Whereas prior versions had Joan
10:23:20 facing Southeast 12Th.
This was done to respond to some of
10:23:25 the priorities of the parish to retain their existing
10:23:29 facilities there and how we could best accomplish
10:23:32 that.
The outdoor courtyard that we had
10:23:37 shown on the prior site plan actually will be
10:23:40 encompassed where the parish is existing parking is, that was a high
10:23:44 priority for them to retain since we're in the central city
10:23:48 district.
No new surface parking is allowed, and
10:23:52 so we wanted to presurf what they already had for their parish members.
10:23:57 But knowing that that is not strongly utilized
10:24:01 most of the week, that which is currently
10:24:06 largely pervious paving there will potentially remain available for green
10:24:09 space when it's not needed for other uses.
10:24:14 As well there's green space at our existing
10:24:18 St. Francis Park Apartments next door, and in the Francis + Clare
10:24:23 Commons that will be available and we look forward to them
10:24:27 utilizing more.
And then just related
10:24:32 to fitting everything in the building and on the
10:24:36 site, we did a little swap in reducing the
10:24:40 one-bedroom units by three, and increasing the number of studio units
10:24:42 by three.
So it's the same number of units that
10:24:47 we proposed in our initial application, but just a slight switch in terms
10:24:51 of the type of units.
10:24:54 We can move on to the next slide.
So a couple things.
10:24:59 You heard Mac talk about our general contractor
10:25:03 O'Neill/Walsh Community Builders, really excited to have them work with
10:25:07 us on this project.
We really selected them based on their
10:25:11 alignment with our goals as well as their performance and
10:25:17 commitment on the St. Francis Park
10:25:21 Apartments.
Currently we're tracking over 90% of
10:25:25 -- for COBID certified firms, thanks
10:25:30 to our partners at Holst for embracing our
10:25:34 commitment there, and leaning into that very
10:25:37 strongly as well as the other professional services that we've
10:25:40 contracted on the owner side.
So pretty excited about those numbers
10:25:45 and the opportunity there.
Those are largely minority and
10:25:46 women-owned firms, just for the record.
10:25:51 And I would also just note in terms of
10:25:57 O'Neill/Walsh's confidence in the ability to meet the COBID goals
10:26:01 that were in our application,
10:26:06 we continue to work with them and just appreciate A,
10:26:10 the partnership with O'Neill as a minority and
10:26:15 women-owned firm, as well as just
10:26:19 their incredible willingness to lean into
10:26:23 workforce representation, apprenticeship
10:26:27 opportunities, and not just meeting the
10:26:32 check the box goals, but looking at how we support our minority and
10:26:35 women-owned firms in that work.
So excited to say we're still tracking
10:26:40 very strongly in that regard.
Moving on to the next
10:26:46 slide, just want to highlight a couple of issues, challenges, and I think
10:26:50 from what you heard Mac say earlier, we're moving ahead
10:26:54 smoothly.
But as we are looking to
10:26:58 create additional housing opportunities on the site there
10:27:02 adjacent to the church, took some
10:27:07 creative work in our early assistance meetings and with the City
10:27:11 of Portland to identify exactly how we could
10:27:15 create the new legal tax law that the housing would
10:27:19 sit on and actually preserve what the church needed within their
10:27:23 existing lot.
You've heard this from everybody, I'm
10:27:27 sure.
But increases in construction costs
10:27:30 and interest rates are definitely a challenge for everybody in spowr
10:27:33 industry right now, and we haven't been immune to that, though we certainly
10:27:37 have had a very close eye on how we mitigate those challenges and make
10:27:41 sure that those don't prevent us from moving forward smoothly.
10:27:46 And sort of related, construction costs as well, it's
10:27:50 a busy construction environment still, and both on the professional services
10:27:54 side and with subcontractors, really getting that
10:28:00 responsiveness has required a lot of extra effort on our part, and I think
10:28:04 -- and by our part I mean our entire team, not just Catholic Charities, but
10:28:08 also the Holst team, the O'Neill/Walsh team, and
10:28:12 I think we'll continue to need to put a lot of work there, and I think we'll
10:28:16 see potentially that's one of the things that has impacted construction
10:28:21 costs, it is the market is in the favor of the people doing the
10:28:25 work right now, which is both great for them, but also challenging when
10:28:30 we're trying to keep our costs under caps for the
10:28:33 project.
We can move on to the next slide.
10:28:36 >> STEVEN HOLT: I hate to interrupt, we've got about two minutes.
10:28:39 >> TRAVIS: Perfect.
I've got about two minutes left.
10:28:43 Thank you.
Mac highlighted a little bit of this
10:28:47 in terms of the partners who are working with us for engagement on this
10:28:51 project, but really had a strong community advisory group that led a
10:28:54 visioning process.
Before we had even submitted the
10:28:57 application for this project.
And really wanted to be responsive to
10:29:01 the needs and challenges in the ?aibd, and also make sure that
10:29:04 this was -- in the neighborhood, and make sure it was a welcoming
10:29:07 neighborhood for a population that not all neighborhoods are particularly
10:29:10 welcoming on.
And we really got a lot of alignment
10:29:15 with folks who already in the community, central eastside industrial
10:29:19 council, folks who had experienced homelessness, the
10:29:23 buckman Community Association, appreciate the folks from the joint
10:29:26 office and other agencies joined us for this.
10:29:30 And really tried to come up with a program for the
10:29:37 development that was well aligned with all of the community needs and
10:29:40 desires.
And then have continued on that with
10:29:44 focus groups both in that advisory group and in that advisory
10:29:49 work and since with folks who have experienced homelessness, including in
10:29:53 the neighborhood, residents of existing Catholic Charities
10:29:58 properties, including at St. Francis qap cap park next door, and clients of
10:30:02 NARA and AfroVillage.
That's been great, both in
10:30:06 terms of feedback on the design and amenities, but also how
10:30:09 we can ensure the properties are meeting those goals.
10:30:13 And just finally to close things out, noting that we plan to continue
10:30:15 that engagement as we continue to move forward.
10:30:19 >> STEVEN HOLT: Fantastic.
Thank you so very much.
10:30:25 With 12 seconds left.
10:30:29 [laughter]
Susan, comments, questions?
10:30:30 >> SUSAN EMMONS: Just thank you for the presentation.
10:30:35 I don't have any questions, but I look forward to seeing
10:30:39 this being developed.
And tracking the
10:30:40 progress.
>> STEVEN HOLT: Thank you very much.
10:30:45 Allan.
>> ALLAN LAZO: Thanks for the team
10:30:49 from Catholic Charities.
A comment first about, again, how
10:30:53 grateful I am to the teams that have put these together, and looking at how
10:30:57 different the processes are and the needs that you all are meeting, but
10:31:00 all working towards the same goal.
And how remarkable it is in each of
10:31:03 the projects, how that shows up.
So really appreciate that.
10:31:07 I did have a question, I don't know if this is for Mac or maybe Jill,
10:31:11 there must be an update on the funding gap, because I think we show a funding
10:31:15 gap in your chart, Jill, of
10:31:20 875 and then on the Catholic Charities, they show
10:31:23 150.
That must have been potentially an
10:31:26 update?
>> I think that is just a timing
10:31:31 issue, and also our team has not had the
10:31:37 latest numbers.
10:31:41 So I'm thrilled, but they whittled it
10:31:45 down to 150,000, that's easy.
10:31:47 [laughter]
>> TRAVIS: I think -- thanks, Jill.
10:31:52 That definitely has been a factor of just the moving targets and timing of
10:31:56 getting information to who it needs to get to in
10:32:01 the time, in advance so you can get all your meeting materials
10:32:03 prepared.
Jill Sherman, did you want to maybe
10:32:08 give a couple of the highlights on how we've identified reductions in that
10:32:12 gap?
>> JILL SHERMAN: Hi, everybody, I'm
10:32:17 Jill Sherman with Edlen & Co.
Honestly the biggest thing is
10:32:21 we were able to working with
10:32:27 PHB increase the development fee to the maximum allowed
10:32:31 by the state by OHCS, which is 18%, and then
10:32:36 contribute back the difference, which increases our eligible basis
10:32:41 for tax credits.
And thereby increases the tax credits
10:32:44 to the project.
So just to be clear, it shows up as
10:32:48 both a source and a use, there's no additional fee,
10:32:52 cash fee being proposed to Catholic Charities, but it does
10:32:57 directly reduce the gap.
And as you, see in a not insignificant
10:33:01 way.
That's probably the biggest change.
10:33:05 >> STEVEN HOLT: Thank you very much.
Annelies?
10:33:08 >> ANNELIES KOEHLER: Thank you.
No, I don't have any questions.
10:33:12 Just really grateful to have this presentation and all of these
10:33:14 presentations, and continue to see the progress that we're making.
10:33:21 >> STEVEN HOLT: Thank you very much.
Thanks for the updates, appreciate the
10:33:24 work.
Have a great rest of your Thursday.
10:33:29 We will go back to our outline, Mac, Travis,
10:33:33 Travis, good to see you.
>> TRAVIS: Thank you, all, you too.
10:33:39 >> STEVEN HOLT: And now we've got an update, if you would bring up
10:33:43 that slide.
10:33:51 There we go.
10:33:57 >> I don't have any slides, but the first --
10:33:59 >> STEVEN HOLT: That's the first I was looking for.
10:34:04 I thought it was a good way of introducing
10:34:06 Molly.
I was waiting for the slide -- yeah.
10:34:11 >> MOLLY ROGERS: I first wanted to thank our presenters who joined us
10:34:15 today and shared some tremendous progress, different
10:34:20 phases at each [indiscernible], but -- equity
10:34:24 and contracting goals, the programming, services, and really
10:34:28 going a long way in terms of addressing our chronic homelessness
10:34:29 crisis.
So thank you for that.
10:34:34 I wanted to also mention I was recently
10:34:38 appointed interim director, just all of last
10:34:42 week at the Portland Housing Bureau, I wanted to spend a
10:34:46 moment sharing with you how honored I
10:34:51 am that Commissioner Ryan has asked me to serve
10:34:55 in this role.
It is a stewardship role as we conduct
10:34:59 a national -- as the commissioner conducts a national search for a
10:35:04 permanent director.
We don't know how long that will
10:35:08 take, but we have fabulous staff here, and we have fabulous
10:35:13 partnerships with you all to
10:35:17 continue the momentum and all the programs we have put in place, not
10:35:21 just for the Portland Housing Bond, but all the
10:35:25 COBID-related work we've done, and incredible investments to keep people
10:35:26 in their homes in the last couple years.
10:35:31 I I just wanted to make sure we have a moment
10:35:35 to acknowledge Shannon Callahan, director of
10:35:40 all her -- really she was -- a lot of it was integral to
10:35:44 the creation of the Portland House Can Bond, and that really is
10:35:48 her legacy.
Everything from crafting language on
10:35:55 the ballot, to creating a governance
10:35:59 structure, via this oversight committee, which has provided
10:36:02 accountability for us all these many years.
10:36:05 It been 5½ years since we have all been working together.
10:36:12 Everything from ensuring early -- some
10:36:16 early projects to annual solicitations, and really moving the
10:36:21 needle of increasing the affordable housing and rental supply in the city,
10:36:25 as well as doing any opportunities
10:36:31 to expand be affordable housing, and being more responsive
10:36:35 of permit supportive housing.
We're very close to meeting our
10:36:39 city-county goal as a result of the Portland Housing Bond in addition to
10:36:44 other bond measures.
It's a huge
10:36:50 lift that Director call hn had
10:36:54 be given us, but I wanted to ensure everyone our
10:36:58 incredible staff have we have honed our systems and we have a lot
10:37:02 of projects underway that we are continuing to see come
10:37:07 to fruition.
The very exciting to think of us
10:37:11 of only three outstanding projects that have not reached financial
10:37:15 close, three out of 15, just as a way of looking at some of the
10:37:20 metrics there, we have
10:37:22 1490 units that are under construction or have opened.
10:37:26 That has already exceeded the original goal of 1300.
10:37:32 That doesn't include the almost
10:37:36 370 units that will also come online when those three projects
10:37:41 close.
And close to 400
10:37:45 permits -- so we have exceeded those goals tremendously because of the
10:37:49 guidance we've received from you, and helping us focus and when we
10:37:54 had opportunities for
10:37:58 thinking about [indiscernible] funds and you've kept us focused
10:38:02 on geographic disbursements
10:38:06 and diversity, alignment with transportation and other amenities.
10:38:12 So we will continue this great work, I just wanted to make -- use this as
10:38:16 an opportunity for some reflection of what the 5½ years has
10:38:20 looked like for all of us, because we are well
10:38:25 on track to exceed all the goals.
The three
10:38:29 projects that Jill identified, we do need to have more conversations with
10:38:33 some of our funding partners.
10:38:38 Notably be Oregon Housing and Community Services on the projects that will
10:38:42 need additional competitive funds.
There is a lot
10:38:48 of partnerships, a lot of -- we're all in the same boat with
10:38:52 the state in terms of how our projects are
10:38:56 addressing construction and interest rate escalations, and they've been
10:39:00 working really closely with metro, and we want to ensure that we
10:39:04 can also figure out how our projects can benefit from the
10:39:08 additional resources that the state legislature passed.
10:39:12 So there's more to come there.
We've got -- we feel comfortable
10:39:17 with how two of the three will come together, we've got more questions on
10:39:21 the final third.
So we will continue to update you all
10:39:25 on that progress.
Be I wanted to also mention
10:39:30 briefly, we continue to do through audit, we go through annual audits
10:39:35 with Portland Housing Bond, they're wrapping up that audit right now.
10:39:39 It feels like we're always in audits, but we will be able to provide
10:39:43 an update at our next quarterly meeting with you.
10:39:47 A sneak peek of, we think we may have three minor findings.
10:39:52 They did say to me, we always have to have findings, but these
10:39:56 are not material.
But we will update
10:40:00 you all next quarter, we have an actual report to share with you.
10:40:03 And with that, I would be happy to take any questions.
10:40:09 >> STEVEN HOLT: Thank you very much.
Interim director Molly Rogers.
10:40:13 Be.
>> MOLLY ROGERS: What if I don't
10:40:18 update -- one final update, we have since Monday we have --
10:40:22 now have a deputy -- our interim deputy director, which is
10:40:25 Matthew Shovel.
>> STEVEN HOLT: Thank you very much.
10:40:30 I will start with Annelies.
Any comments?
10:40:33 >> ANNELIES KOEHLER: No, just -- no questions, just thank you, Molly,
10:40:37 really appreciate it, and happy to
10:40:41 hear about -- congratulations to you for stepping into this role and Matt
10:40:45 as well, and we really appreciate your service in this time of transition.
10:40:49 >> MOLLY ROGERS: Thank you, Annelies.
>> STEVEN HOLT: Allan.
10:40:51 >> ALLAN LAZO: I would echo what Annelies says.
10:40:56 Thank you all, Molly, for stepping into this role and
10:41:00 taking the opportunity to guide the team over
10:41:03 the next period here, and really appreciate you highlighting the
10:41:06 successes that we've seen over the last five years, and hopefully that leads
10:41:11 to the next set of successes.
>> STEVEN HOLT: And Susan.
10:41:17 >> SUSAN EMMONS: Yeah, I mean, I'm delighted that Molly has
10:41:21 been appointed as interim director.
It gives us a lot
10:41:23 of confidence as to how we're going to move forward.
10:41:26 It is an incredibly strong team at the bureau.
10:41:30 I also really appreciate Molly's acknowledgment of Shannon's
10:41:32 accomplishments.
And how she got us here.
10:41:36 And the team she built.
And some of those that she --
10:41:40 a view she brought in.
She was an exceptional leader
10:41:45 in my mind, this bureau is like a model
10:41:49 of how government should work.
And I say that in other roles, I'm
10:41:53 serving in other committees, really nothing is -- I
10:41:58 think the transparency of the reporting,
10:42:02 the collaboration in the collegial effort that it's
10:42:08 been in treating us with such respect
10:42:11 as Bond Oversight Committee members, andagessing every question and it's
10:42:15 just really been a great experience.
And I see that experience is going to
10:42:19 continue with this team.
So I've been very proud to be part of
10:42:24 it, as I said at city council in April, it's the best committee
10:42:27 I've ever served on, and I've been doing this work for almost 40 years.
10:42:31 So I think that's saying a lot.
I'm
10:42:35 really happy to hear about the leadership, it's going to continue,
10:42:38 and all of you and the work you're doing, in very challenging times.
10:42:40 I really appreciate it.
Thank you.
10:42:43 >> STEVEN HOLT: Thank you, Susan.
Thanks for your comments.
10:42:48 That brings us to the end of our meeting today.
10:42:53 Let me just go over a few things and say also to the new
10:42:57 team, congratulations for the work, look forward to what is in front as we
10:43:02 continue to do this work together, appreciate Shannon's
10:43:06 leadership and influence and decision making
10:43:12 to get this lift into this space.
10:43:16 Great opportunity.
Our next meeting is
10:43:20 October 6th.
We were off schedule due to
10:43:23 summer, and met in August as opposed to July.
10:43:26 But we will be getting back on our normal schedule.
10:43:31 So the first Thursday in October we will meet.