09:31:12 I'm going to beginning now. >> 09:31:17 Absolutely. Thank you 09:31:24 . Wonderful. Got it. 09:31:30 Okay. Let me go over our 09:31:34 overview. We've already called it to order. We will do our roll 09:31:37 call in just a few moments, and then we will 09:31:40 approve our minutes. We've got space for some public 09:31:44 testimony, and then some updates around what's going on 09:31:47 in the project. Some 09:31:50 presentations today, and then we are going to do something super 09:31:54 exciting, we're going to have a moment of putting new leadership 09:31:57 in place. It may not be a shift at all, 09:32:00 but we're going to make sure we 09:32:03 appropriately identify the chair and 09:32:07 co-chair for this work. So, with that 09:32:10 being stated, let's 09:32:13 do our Roku r 09:32:17 roll call real quickly. See 09:32:20 if you can see everyone. Go back to gallery view 09:32:23 for just one moment. 09:32:31 Thank you very much. 09:32:41 Allan 09:32:45 lozo. >> Thank you. I'm the bond oversight 09:32:48 vice chair, I'm traveling at the moment but I will 09:32:51 be back at me computer and join you in a bit so you 09:32:54 can see my face. >> 09:32:57 Awesome. 09:33:02 I'm looking for -- is Todd in? 09:33:06 >> Dr. Holt, Todd will not be -- 09:33:09 had a last-minute emergency that will delay 09:33:12 his participation today. >> Got you. 09:33:16 Thank you. 09:33:20 Susan. >> Susan 09:33:24 Emmons. Bond oversight committee member. I 09:33:28 use she/her pronouns. >> Wonderful. 09:33:32 And last but not least, 09:33:36 I don't see -- looking 09:33:39 for you. >> I don't see 09:33:44 Anales. >> She will be joining us later in the meeting. 09:33:47 >> I did see that. We will wait for the vote until we have 09:33:50 a quorum. Right now we have two of 09:33:53 our four, that Todd won't be able to make 09:33:56 it. But those are the things that happen to 09:33:59 us all. Life is always 09:34:03 full of living. 09:34:07 Let's take a moment and approved our 09:34:10 minutes. Hopefully all the members or each of you were 09:34:13 here and had a chance to look over the minutes from our last 09:34:17 meeting. Any questions or is there a 09:34:20 motion? >> I move we accept the minutes. 09:34:23 They seem very thorough and complete. >> Thank 09:34:27 you, Susan. 09:34:36 >> Second. Are we watting until the other 09:34:39 members come, Dr. Holt, or are we 09:34:42 going to vote now. >> We can wait to 09:34:46 approve the minutes until Analis 09:34:49 gets in. She won't be in for a while, and I don't think 09:34:53 Todd is going to be in at all. >> I'm happy 09:34:56 to second and move forward now if we're able 09:34:59 to. >> I guess, you know, with four 09:35:04 members having two present, it kind 09:35:07 of meets the minimum requirements. >> 09:35:10 Good, let's do it. >> Yeah, 09:35:13 excellent. Thank you, sir. I appreciate 09:35:16 it. We have a moment for public testimony. 09:35:20 We didn't have anyone sign up in 09:35:24 advance. Other than commissioner Ryan's 09:35:28 assistant, and I don't know, Karen, if you meant to 09:35:31 sign up for public testimony or not. But how we do public 09:35:34 testimony is we allow two minutes for 09:35:37 each person to share their voice, their 09:35:41 thoughts, their concerns. We ask that it be in relationship to 09:35:45 the agenda of the day, and that if there 09:35:48 are things you're concerned about that are outside of the 09:35:51 agenda that you follow up with one of the members of the Portland Housing 09:35:55 Bureau. Now, normally, when we are present 09:35:58 I have us all raise our hands but I will 09:36:02 have us maybe wave in the camera if you are a staff member of 09:36:05 the Portland Housing Bureau so people know who to reach out to. 09:36:09 Thank you very much. So, for our public 09:36:12 testimony, let's open the floor and give a moment 09:36:16 or two. Is Karen in the space? 09:36:19 And, Karen, you did mean to 09:36:22 sign up for 09:36:26 public testimony? 09:36:33 >> Karen hasn't joined the meeting today. 09:36:36 >> Is there anyone else who wanted to take advantage of 09:36:39 the public testimony moment? You can indicate it by 09:36:42 raising your hand. 09:36:46 I can't see the full screen, so, if 09:36:50 I'm missing anyone, please help me 09:36:54 out here. 09:36:59 Okay. With no indication, we will keep 09:37:02 building. Let's go to our bond updates. 09:37:07 Project milestones. Jill, I believe 09:37:10 this is you. 09:37:18 >> Sorry. 09:37:22 Let me -- hold on. There you go. 09:37:25 Sorry about this, but we're trying to also get some 09:37:28 technology going, so I'm 09:37:31 on here, on my computer as well 09:37:35 as on the -- in the room. So for 09:37:38 the record, I'm 09:37:41 Jill Chen, 09:37:45 portfolio preservation manager. I'm 09:37:48 a little cautious about touching that thing. I'll 09:37:51 just put it in front of me. 09:37:53 Okay. Great. Next slide, please. 09:37:57 Great. Perfect. I 09:38:00 just wanted to highlight the fact that, as you 09:38:03 saw in this slide, things are 09:38:07 going really well in terms of moving our 09:38:12 projects from construction into opening. 09:38:16 We've got a number, the dark blue 09:38:19 graph is almost catching up to the green 09:38:22 one and we're hopeful by the 09:38:25 end of this collar dar year we would open about 09:38:28 a how to -- calendar year, we would open about a 09:38:33 thousand new 09:38:37 units. In Cathedral 09:38:41 Village, they had the grand opening celebration 09:38:45 September 2022, and I believe the development team 09:38:48 actually will be here later for 09:38:51 a presentation, so feel free to ask them any 09:38:54 questions you have. 09:38:58 And, the other one that will be opening 09:39:01 is, I believe, is Hayu Tilixam. That one has already opened 09:39:04 and we're waiting for some celebration 09:39:07 dates. Starlight, which is a 09:39:11 project with Central City Concern, they have a grand 09:39:15 opening on November 09:39:18 15. And, Emmons Place will also open some time 09:39:21 later this month 09:39:24 . And Las Adelitas is on track for November. 09:39:27 So there are a number of celebrations coming up. 09:39:30 In terms of the big spread 09:39:34 sheet, not spread sheet, that big sort of dashboard 09:39:37 that you see, there are some highlights in 09:39:40 red, and I just wanted to touch base 09:39:45 on that 09:39:53 . Alder 9, they're also 09:39:59 coming in 09:40:02 . PHB has agreed, you can see on 09:40:05 that big dashboard, PHB is providing 09:40:10 additional 4.73 million to help them move through the funding 09:40:13 gaps, and they will be closing in January of 09:40:16 2023. So that's excellent news. 09:40:20 They actually -- they're beginning it now, they had 09:40:24 an increase of almost $10 million so the fact that they 09:40:27 were able to resolve a lot of that is a credit to the 09:40:31 development team. We 09:40:35 also had a change -- (inaudible). 09:40:40 And, also, a swap out a couple of the 09:40:44 studios with four bedrooms, so a little bit 09:40:48 larger 09:40:52 Suzes. The 09:40:55 second project is Francis Clare, that is 09:40:59 moving forward. This is a 09:41:02 project with Cathedral Village and it 09:41:06 is in the (inaudible) neighborhood. 09:41:09 That one beings similar to Alder 9, also had a cost 09:41:12 increase in excess of $3 million. 09:41:15 PHB was able to increase their funds, 09:41:18 frankly, by only about 350,000. It was great. And 09:41:22 that project is also moving forward. They've 09:41:26 applied for private activity 09:41:30 bonds and P 09:41:42 (inaudible): 09:41:46 149 building in southwest 09:41:49 Barbur. Founding gap of about 8 million. It did not receive 09:41:53 Oregon housing community 09:41:56 services TIF funds so PHB is 09:41:59 working with the developer and other partners 09:42:02 to look at next steps. 09:42:08 Next slide, 09:42:13 please. Similar to what I mentioned last 09:42:16 time, the market for projects haven't 09:42:20 necessarily changed that much. Costs 09:42:23 are still increasing at about 1% per 09:42:26 month. Continuing supply chain 09:42:30 issues. The update here is on the 09:42:34 private activity bonds, OHCS, we 09:42:37 opened the private opportunity bond 09:42:40 window that ended in 09:42:43 Sunday, October 2, so we are all the waying to see how many 09:42:48 projects came in 09:42:51 and what is the total 09:42:56 (inaudible). We currently understand there is oversubscription 09:42:59 in the 2023, I call it 09:43:02 availability. It is also over subscription 09:43:05 for 2024. So going forward, we are trying to make sure our 09:43:09 partners and our projects line up 09:43:12 so that we see private activity bond 09:43:16 allocations. One of the other things I did 09:43:19 want to mention 09:43:22 is funding gaps remain, alignment of 09:43:25 public resources is key in 09:43:29 solving these funding gaps, so it is 09:43:32 not just one jurisdiction bringing in capital but it needs to 09:43:35 be a 09:43:38 concerted effort. Some other items 09:43:41 is looking at that projected operating cost. 09:43:45 Maybe it is sub, 09:43:52 sufficient, especially when we see wages and inflation is 09:43:55 almost double digit. The projection in two years time needs to 09:43:58 be lined up so it is more 09:44:01 realistic. Next slide, please. 09:44:06 The dashboard, you will see the 09:44:10 diversity of the Portland Housing Bureau projects. It is 09:44:13 across all geographies, the deep of 09:44:16 buildings and the level of the affordability. We 09:44:20 saw the green open, is the green here, and 09:44:23 that consisted of five projects. 612 09:44:27 units of which 421 are 09:44:30 family-sized. 196 are 30% affordable 09:44:34 units. That which is opening for the rest of this 09:44:37 year, I had rattled off a number of projects. 09:44:41 Those are in the dark blue, and that consists 09:44:44 of 385 units of which 97 are 09:44:47 family sized and 09:44:51 225 are (inaudible). We as an 09:44:55 organization made tremendous progress in meeting both the 09:44:58 family-sized units and the deeply affordable. 09:45:02 So in total, over a thousand 09:45:05 units will open by 2022. Next slide, 09:45:09 please. 09:45:13 And there are the projects. It's exciting 09:45:16 to see we've got -- the green ones are already 09:45:21 open. That's Crecent Court, Hayu 09:45:24 Tilixam, Cathedral Village. We 09:45:28 talked about Crecent Court. And then 09:45:33 starlight, Emmons Place. Crecent Court opened 09:45:36 in May. Cathedral Village in August. Hayu 09:45:40 Tilixam in sentiment and the next one 09:45:43 coming -- in September. And the next one coming 09:45:46 up is in October. (inaudible). 09:45:50 So very much looking forward to it. Next slide, 09:45:54 please. 09:45:57 In terms of 2023 openings, we've 09:46:01 got the Aurora in 09:46:05 Portland. Anna Mann in the Kennedy 09:46:08 neighborhood, and the Joyce. Aurora 09:46:11 is February, 2023. Joyce is 09:46:15 targeted April, 09:46:18 2023. Anna Mann has different time 09:46:22 frames between February 09:46:26 for the building, March for the addition and 09:46:30 May for the north. Three 09:46:33 buildings. Also, Emmons Place north building will open in 09:46:39 May. Unfortunately, 09:46:42 Powell, 3000 Powell, six units, slipped and 09:46:45 it will go into January 2024. That's it for 09:46:48 the updates. Any questions? >> 09:46:52 Thanks, Jill. Let's begin with Susan. 09:46:55 Susan. >> This is a more of 09:46:58 a general question, I don't expect an answer 09:47:01 today, but I'm interested long-term after these 09:47:05 buildings are open, do we monitor 09:47:08 occupancy and retention? Do we expect to get 09:47:11 reports from the providers and owners? That would really be 09:47:15 interesting to me. Because the 09:47:18 PSH units are certainly addressing a 09:47:22 challenging population, and they're very much needed and I think the 09:47:27 buildings are beautiful. Just be interesting to hear 09:47:30 how they're going in another year or 09:47:33 two. >> Gina, can you speak to the 09:47:37 reporting requirements? How we monitor the projects 09:47:41 going forward? >> Sure. 09:47:44 So, my name is Gina Scott, she/her pronouns. 09:47:47 I'm on the risk analysis compliance team. 09:47:51 And our team oversees all the projects that 09:47:54 have regulatory agreements and 09:47:59 loan agreements so 09:48:02 we look at three parts. If there is loan, 09:48:05 we look at the financial health of the project. With these, we would 09:48:09 be looking at the financials. We also look 09:48:12 at the property health, make sure that it is -- 09:48:15 it's safe for the residents. 09:48:19 And, that the affirmative fair housing marketing 09:48:22 plans have been done to ensure that 09:48:25 people are getting into the units 09:48:29 that normally wouldn't apply. We also look 09:48:33 the tenant reporting, which there is a lot of demographic 09:48:36 information in those that the owners are required to submit every 09:48:40 year. So I can put something together in 09:48:43 a, you know, a year or two after they've -- 09:48:47 after these are open, and then present it to the committee. 09:48:51 That's not a 09:48:54 problem. >> 09:48:57 Thanks, Gena. 09:49:00 Appreciate that. Allan, a question, 09:49:04 sir? Comments for Jill? >> 09:49:07 Yeah. Thank you, Dr. Holt. As we move through 09:49:10 these, it is so exciting to hear about the progress and 09:49:13 how all the goals are being met. That is 09:49:17 fabulous every time we've been meeting these last few 09:49:20 times. I have a question about the Barbur apartments and the process, 09:49:23 Jill, for not being a developer, what are sort of the 09:49:27 next steps and what happens if they're not 09:49:31 able to close the funding gap for that 09:49:34 project? What -- how do we proceed then with 09:49:39 the bond. >> I think this is one of those where 09:49:42 we're all going to be working hard to see 09:49:45 what can be done. We, 09:49:49 PHB, has wanted to have a 09:49:52 southwest Portland project for our 09:49:57 framework. We want one in every, call it 09:50:00 locality. Right now we're working to see what can be done 09:50:04 in terms of shifting different 09:50:08 resources, working with OHCS so see if they 09:50:11 might be willing and flexible to move some of the 09:50:15 resources they might have granted us. Metro 09:50:19 bonds. In that particular pot of money, we have some 09:50:23 say. Housing trust funds and 09:50:26 LIFT, we're looking at potentially keeping that, maybe 09:50:29 swapping some. It's a lot of different 09:50:34 options. Worse-case scenario, because the 09:50:37 Portland housing bond I think we made certain commitments to 09:50:40 the public about when we deploy the funds and as 09:50:43 you those funds or commit those 09:50:47 funds. Ideally, we like to see if we can get our 09:50:50 project done. It 09:50:53 may have to, call it, 09:50:56 redirect our efforts. >> To add to that, 09:50:59 there's two major challenges 09:51:04 with getting funded. The first is 09:51:07 getting caught up in the scarcity of 09:51:10 private funding state level. We are working closely with the 09:51:14 state, understanding their forecast and subscription and how our 09:51:17 projects align. And getting -- and being able 09:51:21 to get those allocations so that we can line 09:51:24 upper missing. We can line up financial awards 09:51:27 to make sure all the gaps are addressed so all of 09:51:30 those pieces come together, but there is still 09:51:33 an over subscription. So there is work that we will needed to 09:51:38 do to keep advocating to the state to make sure all the 09:51:41 private activity bonds go to affordable housing. 09:51:44 There's a lot of conversations, but 09:51:47 the housing alliance and other 09:51:51 advocaciy groups, I encourage you 09:51:54 all to plug into those advocacy 09:51:58 efforts because it should be -- we think of it as the highest 09:52:01 and best uses of affordable 09:52:04 housing, of that resource. So that's thing number 09:52:07 one. Thing number two is there is still a gap 09:52:10 at the project level that we are 09:52:15 trying to address 09:52:19 . As Jill was saying, we've got project 09:52:23 gaps, frankly, every where because of escalating construction 09:52:26 costs, supply chain issues, labor shortages and interest 09:52:29 rates going up 09:52:32 by 200 basis points. So collectively, as we've seen 09:52:35 30% increase in the last year in our 09:52:39 projects, and we see those, we don't necessarily know when 09:52:42 the trend lines will plateau. So 09:52:45 we're forecasting forward to 09:52:48 address those that are next in line and triaging and 09:52:51 looking at where we can find additional 09:52:57 resources, federally, is sort of what we have most control 09:53:00 over and then having conversations with the state and metro 09:53:04 partners of where we can -- as much as we can 09:53:07 co-mingle our collective resources to make our 09:53:11 projects go. So 09:53:15 both troubles, gap and prior activity 09:53:18 bonds, so we don't have -- we're not proposing a 09:53:21 solution as of yet but we will come back to you knowing that we are very 09:53:24 much aware and we are committed to meet 09:53:27 the timelines of the Portland housing bond that we 09:53:30 put out to the voters and may need 09:53:34 creative solutions next year. >> Allan, the 09:53:37 question you asked about gap funding and 09:53:41 gaps is across-the-board and all of the developments 09:53:44 in affordable housing, in speaking with the 09:53:49 OHCS production manager, they're 09:53:52 looking at their pipeline also and saying they know a number of projects that's 09:53:55 already come in, 09:53:58 we see maybe OHCS funding or 09:54:02 LIFT or some other sources, maybe even with private 09:54:05 activity bonds, they will not close because the gap funding 09:54:08 is so big, they're just not able to close. So 09:54:11 we're in a very difficult situation right now in the whole 09:54:17 market, not just PHB but everybody. >> Great, 09:54:20 thanks. I appreciate the context, too, around 09:54:23 kind of statewide and 09:54:26 OHCS and the sense there might be some advocacy 09:54:30 overall for making sure that, you 09:54:33 know, as a community, we're making 09:54:36 an investment and closing those 09:54:40 funding gaps so we can get these projects 09:54:43 moving forward or move forward and they're successful. I 09:54:47 appreciate that context. Thank you. >> One last plug, 09:54:50 that's why we think alignment of all the resources, 09:54:53 of the local, regional, state and federal 09:54:57 really makes sense because if every 09:55:01 project, 10 projects have gaps, none of the projects will 09:55:04 go. If we can save seven, eight 09:55:08 projects, at least the seven, eight will go. 09:55:11 So moving around, aligning those resources, 09:55:13 becomes critical. Thank you. >> Thank you. 09:55:18 Allan, any other questions or comments? >> I wanted to 09:55:21 is a quick follow-up on that. I'm just going to 09:55:25 make an assumption there is not a 09:55:28 good mechanism for that alignment of resources at this 09:55:31 time that we're sort of left for he folks 09:55:34 to scramble around and try to cobble that 09:55:38 together. There is not a planning mechanism that allows us 09:55:41 to do that is 09:55:44 that accurate? >> 09:55:48 We wish there was a membernism. Right now 09:55:51 it is dollar, meaning reaching out and 09:55:54 working with them and vice-versa, but there 09:55:57 is no mechanism that would allow it so we are 09:56:01 hoping with your 09:56:04 support we can all advocate not just with PHB, 09:56:08 OHCS but between the local 09:56:11 jurisdictions and the state. >> There could be leadership 09:56:14 decisions that encourages all the funding 09:56:18 partners to align timing 09:56:22 and/or resources across all the 09:56:25 participating jurisdictions or all the other local 09:56:28 jurisdictions. So it could be a 09:56:32 mechanism, there just isn't really one right now. >> Great, thank you. 09:56:35 I've heard that in other contexts, also, so 09:56:38 just wanted to confirm that. Thank you. >> Thank you. 09:56:41 Thanks for the report. Thanks, Allan and 09:56:45 Jill, for the questions. We will move forward in the 09:56:48 agenda to our quarterly expenditure report. 09:56:51 Angel? I believe that is in your court. 09:56:57 >> Good morning, my name is angel 09:57:02 Landron Gonzalez, I'm the financial and accounting 09:57:05 manager for the Portland Housing Bureau. May pronouns are 09:57:09 he/him, and I'm Latino. The expenditure report 09:57:13 highlights as of September 30 of this fiscal year are the 09:57:17 following: The 09:57:20 expended versus committed accounts increased 09:57:24 on construction compare with the previous quarter report 09:57:27 of the 09:57:30 project spanned has increased by 09:57:33 12.2 million, equivalent to 8.88%. 09:57:36 And the commitments have decreased 09:57:40 by 12.2 million, equal to 09:57:44 minus 10.18%. The reserve 09:57:47 remains at 09:57:50 167,000, and the net interest and credits 09:57:54 remain at 2.28 million. 09:57:57 And that amount is planned to be 09:58:00 used for future projects. 09:58:04 If there are any questions, I 09:58:07 can get pack to Dr. Holt. >> Thank you very 09:58:11 much. I will go through our approach 09:58:14 that we've been using. Susan, do you have 09:58:17 any questions or comments? >> Yeah, I feel like 09:58:20 I should know the answer to this, but is there a year, 09:58:24 a date by which this bond 09:58:27 sunsets that we have to spend the money? Because we 09:58:30 started in 20178, and now 09:58:34 start 09:58:37 ed in 2018 and now we're close to 09:58:40 2023. I just don't remember that. >> I believe we made a 09:58:43 commitment of seven years to the voters, so that puts 09:58:47 us out to 2024. With you we should 09:58:50 look the at the specifics and come back to you, and look 09:58:53 at the very specific language on the measure so we're 09:58:56 all on the same page of what that means. Becauses 09:59:00 as we know, projects sometimes take a couple 09:59:03 years to 09:59:08 construct so following the process we like to 09:59:11 think of it as the projects have financially closed 09:59:14 at that time. That's some of the precision we need 09:59:17 to look at. >> I did want to make one 09:59:20 clarification on the interests and credits, 09:59:24 the 2.28 million, that's not necessarily open. It is really any of the 09:59:27 gaps that are in the pipeline. The three 09:59:30 projects. 09:59:34 In other words, the number of units aren't 09:59:37 going to change. And we will fully 09:59:41 extend the full amount. 09:59:50 >> Thank you very much, Susan. Any other questions? >> No. 09:59:54 >> Allan. >> Great, thanks. I don't have any questions, I 09:59:58 appreciated clarification about the, you know, the net interest and 10:00:01 other credits, funds that weren't 10:00:04 going to go to another project but are going to be used for 10:00:07 the gaps or for, you 10:00:11 know, in reserves. So I assume that was the 10:00:14 case, too, in you think the verbiage that was 10:00:18 used was not as accurate, is what you just told 10:00:21 us. You agree, I don't think it is going to go to another project. 10:00:25 We have projects in place we can use that for. 10:00:29 >> Thank you very much. Thanks, 10:00:32 angel, for the report. we'll move forward 10:00:35 in our agenda. I believe we're going to talk about 10:00:38 a financial audit report. Molly and 10:00:42 I am. Give us the update. 10:00:52 Just a financial audit report. 10:01:01 Do we still have the same you a Jen 10:01:08 agenda? Do I have something 10:01:11 that is difference? The financial audit report. >> We don't have a 10:01:14 slide for it but if Molly or Angel 10:01:17 want to give an update where they are at with the 10:01:20 process, that's where we're at on 10:01:24 the 10:01:27 agenda 10:01:30 . >> We're going to have a final bond audit next 10:01:34 week, not quite in time with this meeting because 10:01:37 we've gotten the financial audit from the 10:01:41 auditors. They're waiting for our response back to make 10:01:44 sure it final enough to be 10:01:48 published. We didn't want to get ahead of ourselves and 10:01:51 submit something that was still technically a draft but we will 10:01:54 send that to you all once it is final. 10:01:57 Just sneak peek, things are looking really good in 10:02:00 terms of our fiscal responsibility 10:02:04 and making sure 10:02:07 every bonds were spent as 10:02:11 they were eligible expenses and 10:02:14 that they always make recommendations for programmatic 10:02:17 tweaks and process improvements, with you we 10:02:21 always appreciate. So we are processing those and 10:02:24 putting together a response back. But, 10:02:28 essentially, 10:02:33 we're working 10:02:37 we closely with the auditors and we will be able 10:02:40 to go into more depth next meeting to share the 10:02:43 highlights and the 10:02:47 findings. Not material but 10:02:51 there's always programmatic findings to go over and 10:02:55 processes to address those improvements going forward. >> I can add 10:02:58 that, basically, we received 10:03:02 the financial draft. What we could is 10:03:05 reviewing everything, back and forth, making 10:03:09 sure that their recommendations or 10:03:14 findings are accurate 10:03:23 , we are working on responses to the final draft 10:03:26 so we are in the last stage of validation for the 10:03:30 review to be posted as final. 10:03:39 >> Thank you very much. Any questions? 10:03:47 From our bond oversight committee? 10:03:50 I'm going to go in the same manner I've been going. 10:03:53 Susan? >> I have no questions. >> Okay. 10:03:55 Thank you. Allan? >> No. 10:03:58 Great. Sounds good. No questions from me. 10:03:59 Thank you. >> Perfect. Thank you. 10:04:03 Thanks for the report. If I threw a curve ball in 10:04:06 there -- [laughter] 10:04:10 >> We thought it was going to be done when 10:04:13 we put the agenda together. >> No worries. I will say 10:04:16 this, in terms of cost and 10:04:20 escalation, it's across-the-board, not just in 10:04:23 the affordable house dying napm I can. Some of you know 10:04:26 I'm in the midst of a remodel, and oh my 10:04:29 word. 10:04:34 [laughter] Oh my word. Yeah. 10:04:37 Where you start and where you stay is so different. Our 10:04:40 next item on the agenda is a project team 10:04:43 presentations. We have Cathedral Village and then we have Alder 9. 10:04:47 And we have time allotted of about 40 10:04:50 minutes for each presentation. Which means that 10:04:53 each group has been 20 minutes. What I am 10:04:57 going to do is set a timer. You 10:05:00 will hear a sound. When you hear the sound, you've 10:05:03 got a minute to wrap up. We want to give space 10:05:06 for questions and comments for the group. So 10:05:09 you're going to have 13 minutes to talk through your 10:05:12 information, then you're going to hear an alarm. Once 10:05:15 you hear the alarm, it will be a minute and 10:05:19 then I'm going to wrap you up so we have an 10:05:22 opportunity interact. I hope that makes 10:05:25 sense to everyone. Yes? All right. 10:05:30 Let's go to Cathedral 10:05:34 Village 10:05:38 . >> Our team from Related Northwest is here. 10:05:42 >> I don't know how to change my camera so you get may side 10:05:45 view. Not my best view but my side view. 10:05:49 [laughter] So, good morning. 10:05:52 I'm Stef 10:05:55 Kondor with Related Northwest 10:05:59 here to plenty project that recently completed construction. As 10:06:02 Jill said, we recently had our grand opening, 10:06:05 which was really well received. Very proud about 10:06:09 this project 10:06:15 . I personally, with Daniel 10:06:19 la, project manage this and it was a lot of fun. It 10:06:22 is located in the St. John's neighborhood. I 10:06:26 believe is the first PHB funded project in the 10:06:29 St. John's neighborhood so we're proud about that. A 10:06:32 little about Related Northwest. We opened 10:06:35 the doors four years ago. This is the third project 10:06:38 we've completed. You also through the Portland 10:06:42 bond completed the Crecent Court project, a few months 10:06:45 earlier. So we're really excited to be able to deliver 10:06:48 housing through this Portland housing bond. 10:06:51 It's 10:06:56 been a really good tool for bringing about 10:06:59 housing quickly. This is two blocks 10:07:02 away from cathedral park so folks are able to enjoy 10:07:06 the amenities close by to the 10:07:09 park. Walking distance from the downtown hub and 10:07:12 grocery, and also walking trails along the river there and 10:07:16 great view of the bridge and forest park. It is very well 10:07:19 received by residents tomorrow date we have 26 10:07:22 moved in already. We have 200 people on 10:07:26 the wait list. We have, I 10:07:29 think, another 19 applications in 10:07:33 and 10 that are fully approved. So very 10:07:36 well received projects. Next slide. 10:07:42 This is a partnership with all of our projects, 10:07:45 we work with area nonprofits 10:07:49 to bring also co-ownership 10:07:52 opportunities, meaning that they have an economic 10:07:55 interest in the project, they receive the benefit of, 10:07:59 you know, developer fee in sharing that and cash 10:08:02 flow. They are typically providing services. 10:08:05 In this instance, Cathedral 10:08:08 Village, we 10:08:12 have Catholic Charities that is co-owning, providing 10:08:15 resident services on site, as well as case management 10:08:19 services. We have integrated significant supportive housing 10:08:22 unouts they provide case management services to. The 10:08:25 project itself is over 50% of the units are 10:08:28 family units with 45 10:08:32 twos and 11 three-bedroom units. It is 10:08:35 a four-story wood-constructed 10:08:39 building, but we had the opportunity to upgrade the 10:08:43 cladding here with brick and met school very long-term durable 10:08:47 finishes that will stay nice in the 10:08:50 community. We also brought in a local 10:08:53 nonprofit nonprofit by the name 10:08:56 of Vibe PDX. They're in 10:09:00 St. Johns and looking to do an 10:09:04 after school program 10:09:08 . The year has the oldest jazz 10:09:11 festival west of the Mississippi. They 10:09:14 hold it at cathedral park. We were north 10:09:21 fortunate to have a table there 10:09:24 and talk to the community. 10:09:27 We built outlining music technology room for them to record 10:09:31 music and via PDX teach 10:09:34 them how to use instruments and music and things like 10:09:37 that some we're really excited about them being a part of 10:09:40 this community 10:09:43 . Our priority 10:09:47 community, serves these at risk 10:09:50 of homelessness. Catholic Charities has been serving 10:09:53 Oregonians about 80 years and they work with a 10:09:57 lot of new 10:10:00 arrival, imp 10:10:03 imimmigrant and refugees, 10:10:06 and they do a great deal of really deep work with 10:10:09 our vulnerable residents and communities so they 10:10:12 have been the perfect partner. We love working 10:10:16 with them. We imagine that approximately 250 10:10:19 to 300 individuals will be housed at this 10:10:22 community. Next slide. 10:10:27 So, it takes funding and expertise and 10:10:30 a lot of different folks to 10:10:34 bring about this very, you know, impactful 10:10:38 project. We utilized about just 10:10:42 under $16 million of Portland housing bonds to create 10:10:46 this. We have permanent financing of just 10:10:50 over 7 million. We utilized low income housing tax 10:10:53 credits of 4%, tax credits at about 10:10:57 almost 11 million. We have a deferred developer 10:11:00 fee. We went after some grants, 10:11:04 so weatherization grants. We 10:11:07 also got something that Head 10:11:12 co and the 10:11:20 foundation. This is about deepening the affordable 10:11:23 of programs we can serve. We 10:11:26 were award 10:11:30 ed a PG&E slower lar grant. You sea on the 10:11:34 top a large solaria ray. It should be fully 10:11:37 going over the next month or so, but we have 10:11:40 sized it to 10:11:45 completely 10:11:48 sized it for the property management lights, 10:11:51 community, so that allows us to have deeper 10:11:55 service like PDX and our resident 10:11:59 services. It really does make a big 10:12:02 difference. It reduces our 10:12:05 carbon footprint and many other things. It is highly 10:12:09 visible over the St. John's bridge, you can look 10:12:12 down to the right going towards St. Johns and see 10:12:15 this property and the amazing 10:12:19 solar away. Total cost, 36.2 million with 10:12:22 all of the sources that were brought into this deal, we 10:12:27 referraged that money 2.3 times. So it 10:12:30 is a great tool to pair with other funding that 10:12:33 available in the state. 10:12:45 In current time, it is meed. When we 10:12:50 did this a few -- it is occupied. When we did this 10:12:53 a few days ago, we received 10:12:57 platinum, high efficient green building. This is achieved 10:13:00 through the solar array, through 10:13:04 materials, methods of construction. We feel really proud 10:13:07 we're bringing a very sustainable project. Again, as 10:13:10 I mentioned, Vibe 10:13:14 PDX. One thing that is noteworthy, if do you 10:13:18 drive by this property along Crawford, it 10:13:21 has a longer frontage and we decided to 10:13:24 bring in local artists that are BIPOC artists 10:13:27 to come in and do 10:13:31 a mural. I think we have a slide 10:13:35 later on what this will look like. It is trying to 10:13:38 emulate the arts in the community and character in the 10:13:41 community and bring more 10:13:44 vibrancy to that area. 10:13:47 You know, as we mentioned, Catholic Charities 10:13:51 doing the resident services and case management. 10:13:54 Eight permanent supported housing 10:13:58 units spread across the family units. And 10:14:01 we're getting our second equity installment. Because we 10:14:04 completed construction, we can bring a little bit more of that 10:14:09 equity into the field to pay down some of 10:14:12 our construction loan. Next slide. So, let's 10:14:15 see. You know, we, too, face the 10:14:19 challenges that many are facing. You know, I 10:14:22 feel like that we were really lucky this the sense that, 10:14:25 you know, we closed this project in January 10:14:30 of 2021, took about, I 10:14:34 think, 20 months, 21 months to complete. Through 10:14:38 that, you know, we've -- this was basically 10:14:41 a pandemic baby, we say, 10:14:44 so we were smack dab in the pandemic. We still were able to 10:14:47 hit our closing date and we still were able to 10:14:50 deliver on team. You know, during 10:14:54 predevelopment, we did have some 10:14:58 construction cost increases. This project is 10:15:01 located next to railroad. Our 10:15:05 original design was oriented a little 10:15:08 different, but because of ODOT we had to 10:15:11 flip the building. That cost a little more. Also, you 10:15:15 know, we had to do the full break in 10:15:18 metal because of the requirement, the zoning 10:15:22 requirements in that neighborhood for sound transmission, 10:15:25 to deaden the sound transmission because it 10:15:28 is on the rail. We're lucky because it 10:15:31 looks beautiful with these materials, but it 10:15:34 wasn't really a chose. We had the 10:15:38 option to upgrade the platting there. We added 10:15:41 fencing and a landscape buffer along the 10:15:45 -- what what you can't see is there is fence near 10:15:48 the burr and we will have slats to provide more of 10:15:51 a visual barrier, so 10:15:55 that will be nice 10:16:01 . We had fiber-optic to relocate, the city fiber-optics so it 10:16:04 was about a million dollar change since the 10:16:07 fund ing award. Not too, too bad. We 10:16:10 didn't have to go back for additional 10:16:15 funds. We were fundraising. We got decent equity 10:16:19 pricing. And the tax credit got fixed. Before it was a 10:16:22 floating rate, it was 3.04 when 10:16:26 we first went into the deal, when we submitted. When we 10:16:29 closed it had just gotten fixed. We were able to 10:16:32 give the 10:16:36 city, Portland Housing Bureau $1.5 million back 10:16:39 when it closed because of that fix. We 10:16:42 were pretty efficient with everything. I feel very proud 10:16:45 about this project, we stayed well within budget and able to 10:16:48 get the equity pricing that we got. Next 10:16:52 slide. 10:16:55 Okay. We are knocking it out of the park when 10:16:59 it comes to 10:17:11 DMWESB. LMC did a great job 10:17:15 getting subs interested in this project and really 10:17:18 expanding the sub pool. We 10:17:22 achieved 38.65% for DMWESB participation. I 10:17:25 think the goal was 30 spots we went well above and 10:17:28 beyond on this particular project. 10:17:32 Next slide. 10:17:38 Yes. Every project exciting. That's why I like 10:17:42 this sport. This, the former use of this site, 10:17:45 how I found this site 10:17:50 was Silco 10:17:53 construction, the materials yard where they keep the trucks 10:17:56 and everything. He wanted to go out and move out of the 10:18:00 area. We did extensive due diligence 10:18:03 but the best-laid plans can sometimes change when 10:18:06 you start to dig into the 10:18:09 dirt. The former use was a 10:18:12 lumberyard way back when but a storage yard 10:18:16 so instead of removing the 10:18:19 lumber, they decided to bury it. As we were dig 10:18:22 we found more and more buried wood. It was 10:18:25 like a treasure hundred 10:18:33 treasure hunt. We had to remove that. It 10:18:36 was a nail-biter for the first 10:18:39 month or two. Buyer 10:18:42 beware. It can be tricky. There could a methane build up 10:18:45 so we had to go through whole DEQ 10:18:48 clean up pathway and everything. We were still able to 10:18:52 keep our time and deliver on time but it was 10:18:55 challenging. Covid presented a myriad of issues with 10:18:59 labor, keeping trades safe as they're 10:19:02 there. You know, pricing escalations. 10:19:06 Longer construction times. You 10:19:09 know, contingency 10:19:13 . It is just a higher risk deal 10:19:16 in a very volatile market. And insurance, we 10:19:20 did, right before close, have a real big pop 10:19:23 in builder's risk. You're seeing that in 10:19:26 today's number, it has gotten worse. Those 10:19:30 challenges will persist with 10:19:33 insurance. >> I hate to interrupt you, you have a minute 10:19:35 left. >> Oh, good. I'm quick. 10:19:41 Here's what the -- just making sure I've got -- yeah, 10:19:44 this is the last slide, we're 10:19:48 perfect. This is what the mural turned out to 10:19:51 look like. We incorporated music, folks 10:19:55 celebrating and a bird. So we tried to really, you 10:19:58 know, make it colorful and interesting. We've 10:20:02 done a lot of out reach in the neighborhood, with the 10:20:05 neighborhood 10:20:09 associations, Cathedral Village jazz fest, all kinds of 10:20:13 things. We got feedback to improve the site amenities 10:20:16 and room sizes. All of our 10:20:21 units are thoughtful with pantries and 10:20:24 liveability and nice-sized units. One thing to 10:20:28 note, this was an all female development 10:20:31 team and all female financing team so everybody 10:20:34 on the closing and most of the attorneys, all of 10:20:37 the funders aen ourselves was all women 10:20:40 led wish is kind of rare in 10:20:43 this world that I live in. And it was 10:20:46 really smooth, one of the nicest 10:20:50 closings I've been on. I'm proud about it 10:20:53 and thanks for letting me share about my kid. >> 10:20:56 Thank you, wonderful presentation, 10:21:00 appreciate that 10:21:05 . Susan, comments, questions? >> It 10:21:08 looks like a wonderful building. I'm sorry I didn't make it to the 10:21:11 opening but you would thereof visit. A couple of questions. I 10:21:15 wonder how many months you've allowed for Lisa, and I 10:21:18 would like you to just describe the laundry 10:21:21 facilities. I am a long-term renter. I raised my children 10:21:25 in an apartment building and I'm always asking the questions that 10:21:28 affect the residents, just so you know where I'm 10:21:31 coming from. >> Yeah. So we think Lisa 10:21:35 will take about six months. We are targeting to 10:21:38 be done by the end of this year but we have until I 10:21:41 think March or April of next year from our 10:21:46 funder's perspective of things so I think 10:21:49 we're well ahead of schedule. So 10:21:53 we should be totally leased by the end of the 10:21:56 year is our 10:22:00 goal 10:22:04 . With the laundry, I hear you. As 10:22:07 mother of three, I do laundry all the time, 10:22:10 unfortunately. What we have done is put large laundry 10:22:14 rooms and we've got two in this building. We 10:22:17 tried to put one on the second floor and one 10:22:20 on the third floor. And they're right next to the 10:22:24 elevator lobby and outside of the laundry 10:22:27 room we actually have kind of a seating area for people 10:22:30 to come and hang 10:22:34 out, and it's beautiful because you can actually see 10:22:37 in this photo -- well, you can't see. These 10:22:40 windows go all the way up so they can kind of look out at the 10:22:43 view and it is very nice. 10:22:47 >> Yeah, that's -- thank you for your 10:22:51 answers. I'm really happy you've allowed six 10:22:55 months even if you get leased up sooner. I think in 10:22:58 projects we've seen it is more 10:23:01 compressed and you're try stock thoughtful of the mix of 10:23:05 people and meat the threshold of who you're trying 10:23:08 to serve, six months is a good amount 10:23:11 of team for 10:23:15 time for a building of this size. >> We 10:23:18 always try to build in cushion 10:23:22 on every piece. Our thought is it is better to be 10:23:26 conservative and over deliver than under deliver, so we 10:23:29 do that kind of every step of the way, a 10:23:32 little cushion on everything because we don't want to have 10:23:37 any issues 10:23:40 . There is always stuff so you want to build 10:23:43 in iodation get through the stuff. >> Susan, any 10:23:46 more questions? >> 10:23:51 No 10:23:57 . >> Allan? >> I don't know if you're on mute 10:24:00 but I can't hear. >> You appreciate the work you've 10:24:03 done in St. Johns and engagement and partners 10:24:06 you have. I don't have any specific questions but thanks 10:24:09 for being here. >> We appreciate the presentations. Thank you very 10:24:13 much. We're going to move forward to Alder 9. 10:24:16 You will have the same 10:24:19 approach. 13 minutes of presentation. You will 10:24:22 then hear the low kind of chime and that will 10:24:26 give you a minute and then we 10:24:29 will give opportunity for the bond 10:24:32 oversight committee members to engage so Alder 9. 10:24:46 >> Thank you, Dr. Holt. I'm 10:24:50 Ryan, leading Alder 9. This is a joint venture 10:24:53 in co-ownership opportunity. Jones 10:24:56 is with us today. This project was awarded 10:25:00 in February and we've been marching quick 10:25:03 three closing. We anticipate closing 10:25:06 January 17 right now. On the calendar for that 10:25:10 date. We've got private activity bonds 10:25:13 allocated and we are full steam ahead. It is such 10:25:16 a quick delivery because we are actually purchasing this site. It 10:25:20 was already designed and it has been through 10:25:23 its design review and fully entitled. 10:25:26 We're picking it up. It is designed originally as 10:25:29 a market-rate development. Mostly 10:25:33 studios and one bedrooms. The current owner couldn't get 10:25:36 it across the finish line. We picked it up, 10:25:40 realized the vicinity is on the east side, 9th 10:25:43 and Alder, I think it is 10:25:46 morrison street and 9th, this view of it. It is in a 10:25:49 great location. A location that hasn't seen affordable 10:25:53 housing in so long. It is just a great location. So 10:25:57 we're repossessioning it as affordable, 10:26:00 targeting seniors and special populations we will get into a little 10:26:03 bit, as well. Next 10:26:06 slide, please. So our unit mix here, 10:26:11 we've got 159 total unlets. Again, 10:26:14 we've kind of revamps to 10:26:18 add some two bedrooms and three bedrooms. A 10:26:21 lot of that was from feedback 10:26:24 and the multi generational 10:26:28 houses we will be serving. There are seniors living in 10:26:32 difference situations so we added 2 10:26:35 bedrooms and three bedrooms, which I'm excited 10:26:38 about. That is a rare find for that 10:26:41 population. We're integrating 25 permanent 10:26:45 supportive housing units and we've got on-site 10:26:50 services provided by Impact 10:26:53 Northwest. We will get into that. The main 10:26:57 provider is Centro cultural and primary 10:27:01 service partner. They will operate an employment and continuing 10:27:04 education center on the premise. They 10:27:07 will have resident services offices and a wellness center, 10:27:11 too, they will be helping to staff with impact northwest to 10:27:14 help connect seniors to health care services. In addition to 10:27:17 that, we've got engage northwest. They are an 10:27:21 award winning senior program, nonprofit. They do really 10:27:26 interesting programs around mind, body and spirit. They do 10:27:30 artist programming and movement programs so we have a 10:27:34 added an artist maker space, a 10:27:38 movement room which will be programmed for the 10:27:42 community. We have SEI 10:27:45 and 10:27:48 IRCO doing engagement procedure the project and they're great partners, has 10:27:51 well. 10:28:02 We're estimating the estimated people houses 10:28:06 is 359 folks, once we're all leased 10:28:09 up. Next slide, 10:28:12 please. 10:28:18 So a quick overview on the project funding. The 10:28:21 Portland housing bond, 25 million there additional gap 10:28:26 award, 4.7 million. We've got -- we're 10:28:30 in a QCT with quite a bit 10:28:33 of equity, 10:28:37 almost 37 million in 10:28:43 LIHTC equity. We have metro 10:28:49 transition-oriented grant and with 10:28:52 the artist location on site so we're excited 10:28:56 with that. Total project cost about 84 million, which 10:29:00 leveraging our initial reward at 2.3 10:29:04 times so trying to leverage as many 10:29:07 resources as possible to get this across the finish line. 10:29:10 Next slide, please. 10:29:14 So, just some general development projects 10:29:17 we're in pre-development now. On the 10:29:21 calendar for a January closing. We're out to bid right 10:29:24 now, so we're 10:29:27 using Pinch construction, also doing a joint 10:29:31 venture with minority construction group. They've ban 10:29:34 fantastic partner throughout predevelopment it 10:29:37 hasn't been incrediblely active in affordable house 10:29:41 bug they've down nice job with engagement 10:29:44 on the cobid side of things and developing this 10:29:48 joint venture with minority construction group which 10:29:51 is helping that organization expand capacity, so 10:29:54 we're thrilled with the partnership there. We're out to bid right 10:29:58 now. I think I spoke earlier, the project was 10:30:01 mostly designed and entitled by we're doing a 10:30:04 permit restorm trackers accommodate 10:30:07 per 10:30:12 Mitt revision. We will have the per 10:30:15 nit hand in December. They've been great to 10:30:20 work with. The permit was 10:30:24 originally opened in 2018 so it has been a white and it was 10:30:27 setting with dust on it at the office for a long timing, and 10:30:30 they've been working with us to get an extended 10:30:33 time line get that issued and we're 10:30:37 thrilled with the progress we've been making with them, as 10:30:40 well. General project highlights, situated in 10:30:44 Portland's central east side, an area that has not 10:30:47 had a lot of affordable housing. 10:30:50 We're excited to reposition something that was market rate 10:30:54 as affordable. It is kind of a unique 10:30:57 approach. This allowed a quick delivery, 11 10:31:00 months almost from award to closing which is much quicker, 10:31:04 especially in a design overlay to get 10:31:07 it on the market. So we're thrilled about that. 10:31:10 Amenity rich and enhanced with holistic services, 10:31:14 designed around this mind, body and spirit 10:31:18 philosophy. A host of different areas and service partners on 10:31:21 site to kind offed help with this. The employment 10:31:24 and educational building 10:31:27 hub, run by Centro cultural, the health 10:31:31 connect. Residents with employment opportunities, continuing 10:31:34 education opportunities. Population of 55, most folks are 10:31:38 working still at 55 so this is a great fit and also 10:31:42 allows Centro culture tool bring this program where 10:31:46 it is currently 10:31:50 operating. We have a wellness 10:31:53 center. The idea is to connect seniors with health care 10:31:57 resources. They're going to be automobile to use that conference 10:32:00 calling and set up Medicaid and things like that. 10:32:04 We've got the artist maker space on 10:32:07 site. And this was from community engagement 10:32:10 that helped inform us, that is 10:32:14 an important piece. Central east side, there is a 10:32:17 large nonprofit artist community in the area so we're 10:32:20 serving the residents. Engage is working on the 10:32:24 programming for that. We have a movement 10:32:28 room, maybe yoga, we have all sorts of ideas there but 10:32:31 it is programmed by Engage northwest 10:32:34 and Impact northwest and Centro is there to 10:32:38 help, too. A host of partners 10:32:41 there we're excited about. They will be 10:32:44 on site. I should 10:32:48 have put the ground floor plan on here. It is really 10:32:51 cool. It has an untierier courtyard 10:32:55 which will look really great. We have a rooftop deck we will be 10:32:58 adding some planters. We've got some 10:33:01 ideas on doing garden space and things 10:33:05 like that. Again, senior programs. I think 10:33:08 other highlight, deeply 10:33:11 affordable. 46 vouchers. Just a host 10:33:15 of great affordable units on 10:33:18 site. Milestones upcoming here. Permits, 10:33:21 we're anticipating in December. Closing in January. We're going 10:33:24 to turn around and put our shovels in the 10:33:28 dirt right after that, January 20, 10:33:31 hopefully, and we're anticipating a construction completion in 10:33:34 December so we think 20-22 months to get this 10:33:37 fully online. We've been doing a lot of due 10:33:41 diligence and predeveloped work to 10:33:44 make sure we have the construction tube. Next 10:33:48 slide, please. Material changes. Again, you know, we 10:33:51 weren't awarded too long ago, I think the 10:33:54 biggest change an additional gap that 10:33:57 was basically due to cost escalation and rise 10:34:00 in interest rates. I think Dr. Holt 10:34:03 mentioned it is crazy with escalation. The 10:34:06 interest rate environment has been quite challenging, so 10:34:10 we tried to kind of adjust financing and such. 10:34:13 A few other bullet points, we have been able to 10:34:17 restructure thing as bit and add additional debt. We 10:34:20 have additional vouchers we've been able to add 10:34:23 on site to bring costs down a bit so we've 10:34:26 been trying to be as creative as possible with getting 10:34:29 this across the finish line. We're out to 10:34:33 bid now, confident today with the out reach to get 10:34:37 great pricing and get 10:34:40 our construction project locked down. Next 10:34:43 slide, please. In temperatures 10:34:48 of 10:35:03 DMWESB updates, the 10:35:06 cedar commons project is just 10:35:09 under 40% and we have a stretch goal of 35% right 10:35:13 now. Again, we're out for beds. I look forward 10:35:16 to updating you all once we get 10:35:19 a contract locked in place. Professional 10:35:23 services, 26%, ahead of where the project goal 10:35:27 is, and we try blow that out of the water, as 10:35:30 well. We're using TPA architects, 10:35:34 a majority couple-owned firm. Unfortunately, they're 10:35:37 unable to certify based on the size of their organization so 10:35:41 they're not technically certified 10:35:45 NWSB firm but they are couple owned. Great to work with them on this 10:35:48 first project and I think they will be active going forward. 10:35:51 Next slide, please. 10:35:56 Issues, challenges. We've been hearing about this all 10:35:59 mornings. The cost of the escalating interest rate environment 10:36:02 keeps things really excited on 10:36:06 our performance. Five rate hikes last year 10:36:09 with put a wrench in some projects and the rising 10:36:13 escalation on construction costs, I think it's been 10:36:16 wild, press unprecedented we've been seeing. Those I 10:36:19 think are the biggest challenges we've 10:36:22 had. A design perspective, things 10:36:26 have been working smoothly. BDS has been 10:36:29 working with us on permit revision. It is 10:36:32 nice not to do the review, accelerate 10:36:35 the project, it is great for 10:36:39 everything and lowers costs and gets 10:36:42 it on the market quickly. Those are the main 10:36:46 issues identified here. Next slide. For community 10:36:49 engagement. We've done a host of community 10:36:53 engagement. Suba, the arts laureate 10:36:56 of Portland, helped bring 10:36:59 artists together around arts programming and designed a 10:37:03 portion of that artist space, the maker space we have on 10:37:06 site. They've been thrilled to see some space like that 10:37:09 coming into the central east side. We've been able 10:37:13 to could outreach IRCO 10:37:16 to design 10:37:19 sized, layouts. Gathering spaces. Rooftop 10:37:22 grill and a gathering space to cook 10:37:26 food. We've also kind of reached out and gotten 10:37:29 a ton of support from the east side 10:37:32 industrial council. They're excited about 10:37:35 the moment center. Excited about affordable housing in an 10:37:38 area that doesn't have much. 10:37:50 Market rate house ising is going to be 10:37:53 affordable. We've reached out and 10:37:57 engaged Alan De La Torre, we will be piloting this 10:38:01 project, a case study, to look at outcomes, best practices and we 10:38:04 will gather data to kind of help assist 10:38:07 the city's initiative on adjusting 10:38:11 seniors and housing stability. We're excited about 10:38:14 that possibility. Worked on design bit there 10:38:17 and programming, so it has been a great 10:38:20 add for everybody. >> Ryan. >> Yes. 10:38:24 >> You've got a minute, sir. >> Perfect. Last 10:38:28 bullet point. Develops great new 10:38:34 partnerships. The theme is 10:38:37 expanding capacity. We're thrilled to work with 10:38:40 Centro cultural and helps expand 10:38:45 their foot. 10:38:49 Jonas, we have about 30 seconds if you have anything to 10:38:52 add? >> You are 10:38:55 correct. >> We're super excited. This is 10:38:58 an opportunity to sort of bring some of 10:39:01 our learned experience and working with community in 10:39:05 such a needed array of housing 10:39:08 choices. Especially in the central east side. And I think 10:39:11 this project team has been amazing 10:39:14 to get us o'er a lot of humps, so 10:39:18 we're pretty excited to get to Alder 9. Thank you 10:39:21 for the opportunity. >> You 10:39:25 guys were great. >> Thank you. >> Thank you, Ryan. 10:39:29 >> Thank you, Dr. Holt. >> I didn't mention it to 10:39:33 Stef, as well. Thank you. You guys 10:39:36 were great in your timing. It is always a challenge 10:39:40 to navigate when you have' got an agenda and you 10:39:43 want to make sure there is an opportunity, equal to 10:39:47 share. Thank you both and being responsive in 10:39:50 participating with the process. I 10:39:53 appreciate it. Susan, comments, questions. >> An exciting 10:39:56 project and thrilling about all your partners. Aid question on 10:40:00 design. In terms of Centro cultural and 10:40:03 impact northwest, will have you offices on seed for host to 10:40:08 organizations? >> Yes, 10:40:12 Susan. Thanks for bringing that up. I wish I 10:40:15 had brought a ground 10:40:18 floor floored plan. Centro cultural has 10:40:23 almost 900 square feet for resident services. 10:40:26 Impact northwest has an office on site. All of this 10:40:29 is free for them to use, obviously. 10:40:32 Project costs. They have an office and they will be 10:40:36 operating that wellness office, too. So they have 10:40:40 two offices. 10:40:43 Engage Northwest will v an office, also the movement 10:40:46 room and artist space so we have 10:40:50 built-in facilities and office space for all the 10:40:53 parer ins and the property management space, as 10:40:56 well. >> Great. No further questions. 10:41:01 >> Okay. Thank you very much. Analis 10:41:05 you've joined us 10:41:08 . Hello 10:41:15 . >> Any comments or questions? >> I missed 10:41:18 a good portion of it, so no comment or questions 10:41:22 but so say thank you so much, for the presentation 10:41:25 and especially the portion I was age to catch. >> Thank you very 10:41:29 much. Allan. >> Thanks, Dr. Holt. 10:41:32 Thanks, Ryan. This sounds really great, like all the 10:41:36 projects I'm so excited when we get to hear about 10:41:39 projects. I'm curious. I think I drifted off 10:41:42 for a motion and didn't get to fully hear what you were talking 10:41:45 about. On the point of the fully entitled and 10:41:49 design piece that helped accelerate the project. Can 10:41:52 you expand on that a little bit and what the benefit was there 10:41:55 in helping you move the project forward more 10:41:58 quickly and efficiently. That is an important point when 10:42:01 we talk about affordable housing. 10:42:04 Folks would love to hear about it. >> Thanks, 10:42:08 Allan. The project was originally marketed as 10:42:12 a market rate building. The current owners had 10:42:15 designed it and put it through and received, almost received 10:42:18 their permit. They got it almost 10:42:22 permit-ready. Part of that pro 10:42:26 of 10:42:29 that project was putting it through design review, 10:42:32 which can take months and it is time 10:42:36 consuming. Instead of purchasing the site, like 10:42:39 a typical or former project would have done, 10:42:42 we're purchasing the site and the 10:42:45 entitlements that existed with it. All we have to do is 10:42:48 a TI. Tenant 10:42:52 improvement to the area. There is design work there too. What 10:42:55 would take a 10:42:58 is a 10:43:01 15-month process, we're able to do much, 10:43:05 much quicker. I think 11 months from award 10:43:08 to closing. I think a project like this without that advantage would 10:43:11 take an additional six months and a ton 10:43:14 of headache and lot of cost. And a few gray 10:43:17 hairs. [laughter] >> Great, 10:43:21 thanks for your work on that. Appreciate it. >> Thank 10:43:24 you. Great presentation. We appreciate both of you 10:43:27 being here. And again, thank you so much for working through the 10:43:30 confines and constraints of timing. 10:43:33 Good job. I'm grateful. >> Thank you. 10:43:36 >> Thank you. >> We will go on with our 10:43:39 agenda, and we are now at the interim 10:43:42 director's update and part of our work arranged leadership for 10:43:46 this bond oversight committee. Molly, to 10:43:50 you. >> Good morning, everyone. I'm 10:43:53 Molly Rogers, she/her pronouns. The 10:43:57 interim director of the Portland Housing Bureau. Happy to be 10:44:00 with you this morning. Just wanted to make you all 10:44:04 aware, we have our two-year 10:44:08 term coming up around our vice chair and chair 10:44:13 positions of the 10:44:16 bond oversight committee. I had the opportunity meet 10:44:19 with our chair and equity. 10:44:23 Allan, you are our vice chair? Great. We 10:44:26 wanted to open it up to see if 10:44:29 anyone would be 10:44:32 interested, that being 10:44:36 Anneliese and Susan, in serving, and 10:44:39 Allan, of course, if you're willing to continue 10:44:42 serving at either chair or vice chair. Todd was 10:44:45 toupe 10:44:49 open to either scenario, to on it serve 10:44:52 or to step down. I wanted to open the floor 10:44:55 to see if we had interest from others for another 10:44:58 two-year term. As I would like to think of, they were an 10:45:01 exciting two years of all these projects opening up and 10:45:05 seeing all the people get housed. >> Well, 10:45:08 let's go to Allan first, since he is here 10:45:11 and in the seat as the vice chair. 10:45:14 Allan, I would love to hear your thoughts. >> 10:45:18 Thanks, Dr. Holt. I'm happy to serve again. 10:45:21 Pe 10:45:24 the pay. The pay 10:45:28 is good [laughter] Or I'm happy to step aside, 10:45:31 also. >> I would thereof see some continued leadership, so 10:45:34 I would love to continue the current plan but 10:45:37 would love to hear from Susan, as well. >> 10:45:41 Oh, I agree with 10:45:44 Anneliese. I like the current plan. Yeah, I'm 10:45:48 happy with things as 10:45:51 is. And I don't know if we 10:45:54 need a motion and vote. >> Exactly what I was going to 10:45:58 do. Let's make a formal kind of approach. And 10:46:01 the suggestion is that Todd would continue as 10:46:04 the chair, or the commitment or recommendation 10:46:07 is Todd would continue as the chair, Allan as 10:46:11 the vice chair for the bond oversight committee. Can I have 10:46:14 someone motion? >> I'll make that motion, as 10:46:19 stated. >> Wonderful. >> 10:46:22 I'll second that motion. >> It has been moved. It 10:46:25 has been seconded. All in favor, if you will -- you know 10:46:28 what, I will call on you individually. How about 10:46:32 that. Allan, are you in favor? >> 10:46:35 Yes, I vote aye. >> 10:46:38 And Anneliese. >> Aye. >> And Susan? 10:46:42 >> Aye. >> It has been moved, it's been carried and 10:46:45 it is now official. Welcome back to the seat, sir. 10:46:50 >> We'll make sure Todd 10:46:54 is aware that he's still willing to 10:46:57 serve going forward. We'll come back to this next 10:47:01 meeting. But thank you, Allan, for continuing to 10:47:04 serve in this capacity. Hopefully, 10:47:07 not too much work for you 10:47:11 that's commensurate with the pay. [laughter] 10:47:15 >> He sounded really excited about his compensation 10:47:18 package. [laughter] >> Okay. 10:47:21 Well I am thrilled to share with you a few 10:47:25 more announcements, and 10:47:28 updates for you all. I just wanted 10:47:31 to just take a moment to talk about 10:47:34 the Cathedral Village ground breaking, especially with 10:47:37 Related Northwest on the call. It 10:47:40 was a beautiful day, and I found 10:47:43 myself actually getting 10:47:47 a bit 10:47:50 -- walking up, seeing the bridge 10:47:53 overview with all the various gardens 10:47:57 and the piece of how the residents 10:48:00 were integrating with healing music and all the 10:48:03 programming. And it's been a few years since 10:48:07 we've been able to really gather, we've had a few of 10:48:10 these. This was the second of six this year and I 10:48:13 highly encourage each of you to join us for the 10:48:17 next coming up. Just that excitement of all this 10:48:20 hard work and just want to mention that, in 10:48:24 preparing for our presentation, made us 10:48:27 aware this is the first PHB financed 10:48:31 project in Cathedral Village in the St. John's neighborhood, and 10:48:34 that is all due to the Portland 10:48:37 housing bond. It is not a TIF district, it 10:48:41 is not where we have other resources we've dedicated 10:48:44 to affordable housing and met a goal of providing 10:48:47 housing where there was scarcity over wise. 10:48:50 And that neighborhood is vibrant and it has changed quite a 10:48:54 bit, so toll able to come in and 10:48:57 have -- so to be able to come in and 10:49:00 have a beautiful, healing view for residents was 10:49:03 really mind blowing for me. We've got another 10:49:07 thousand coming up, 1,000 units to be opened, 10:49:10 which will house thousands more people. The need is so great 10:49:13 but we have to take these moments to 10:49:17 celebrate and applaud one another and thank you, 10:49:21 Related Northwest, for your great work here and I'm 10:49:24 excited for the next few coming up. I also wanted 10:49:27 to share with you some internal staffing work that we 10:49:30 have announced earlier. Just wanted to make sure 10:49:33 folks are acknowledged. We have recently 10:49:38 promoted Tanya Wolfersperger, our infamous bond 10:49:42 coordinator, over these many four years and really has 10:49:45 seen the launching 10:49:48 and the really coming to fruition of all 10:49:51 her bond progress. This is a great time for 10:49:54 us to see Tanya move 10:49:58 into a promotional opportunity as the housing development 10:50:01 and construction services manager. Just wanted a 10:50:05 quick applause for Tanya. 10:50:08 [Applause] It also 10:50:12 means we need to back fill Tanya, because it 10:50:15 is actually a big, big lift. Not 10:50:18 only did Tanya help manage the Portland housing bond but 10:50:21 also our work with the metro housing bond. As a 10:50:24 reflection of where we are with our progress and the 10:50:28 movement towards project completions and all these 10:50:32 openings, we are transferring this work on to Gena 10:50:36 Scott, our manager of the risk analysis and 10:50:39 compliance team. Was promoted a few month he's 10:50:42 go. She will be hiring a bond coordinator to be a 10:50:46 part of her team so thank you, Gena, 10:50:49 for taking that on. So you will see new 10:50:53 faces here, and just our staffing is 10:50:56 reflecting where we are overall on 10:51:00 progress. Wanted to also mention that 10:51:03 we have been -- we 10:51:07 were made aware that our sister 10:51:10 bureau, bureau of planning and sustainability, is going 10:51:13 to city council to 10:51:16 ask for some code revisions to the 10:51:20 Portland clean energy fund that 10:51:23 will, if passed 10:51:28 in October 19, October 19, will dedicate 10:51:32 additional resources to affordable housing to 10:51:35 help with our energy, the energy 10:51:39 components in our green building 10:51:42 policies. Which will advance many of the seam goals 10:51:45 that we have with them around 10:51:48 equity and contracting, workforce 10:51:51 and -- workforce training, as well as 10:51:55 having as much green energy efficient buildings as 10:51:58 possible so things like solar, as 10:52:02 Stef was mentioning 10:52:05 earlier, charging stations and we're 10:52:08 hoping moving inner efficient air-conditioning components and 10:52:12 improved air quality and creative ways we 10:52:16 can do green building 10:52:20 components. It is best to do as part of the design 10:52:24 of the project, so timing could not have done at a 10:52:27 better time. If passed, we would have to quickly work 10:52:30 with our development partners to increase 10:52:33 the energy components. So we just 10:52:38 wanted to thank all the 10:52:41 work that folks have been working on but 10:52:44 obviously this is all contingent on city council 10:52:48 approving this. So just want to make you aware of 10:52:51 that. And, of course, need to 10:52:54 acknowledge, we are working as 10:52:58 hard as we can to yet those three last projects ore 10:53:01 the finish line, and 10:53:04 working the Hipp 10:53:08 team and Jill Chen and the work they're 10:53:11 doing with the development partner to address the gaps. It 10:53:15 is very dynamic because the numbers keep changing 10:53:18 really daily. 10:53:21 And, locking that in when we can get our housing financing with 10:53:24 parts of the state as well as how those projects are 10:53:28 moving forward through permitting 10:53:31 has been a challenge. And so we've got 10:53:34 plans for two of those, and you 10:53:38 you think we already talked about 10:53:41 arbor, so I'm glad you brought it up, Allan. It 10:53:44 is something that is on our minds and we are 10:53:47 having conversations with our commissioner on that and 10:53:50 we're having conversations with Oregon housing and community 10:53:54 services of how we 10:53:57 get -- meet the timelines of the 10:54:01 voter-approved bond measure. Speaking of which, we know when that 10:54:04 comes to fruition, it will be a lot of 10:54:08 chatter about the next bond measure. We know this is 10:54:11 the priority for commissioner Ryan, and we will be 10:54:15 relying on you all to continue leadership and that 10:54:18 voice of how much we 10:54:22 need, of how much we will continue to see the need for 10:54:25 more affordable housing production. 10:54:29 With that, it looks like we have a question in 10:54:33 the chat from Kirk Kreger that 10:54:37 the dedicated -- right now they're 10:54:40 dedicated 60 million over the next five years for our 10:54:44 projects in the pipeline and there will be other planning 10:54:47 work to be done for possibly more 10:54:51 resources. If it 10:54:56 passes 10:55:00 . Thank you for your 10:55:03 continues service 10:55:10 . >> Thank you, Molly, for the 10:55:10 updates. Any questions? Susan, comments? 10:55:14 >> I think that is really exciting about what is coming 10:55:17 to city council and the opportunities that 10:55:20 presents is wonderful that there is all that internal work 10:55:23 that has gone out and I guess partnership between 10:55:26 city bureaus. So I think that's 10:55:30 commendable and I'm really delighted to hear that 10:55:32 report. Thank you. >> Thank you. 10:55:37 Anneliese any comments? >> Just echoing 10:55:41 what Susan said. Excited to see the collaboration across 10:55:44 agency bureaus in the city and help us meet our 10:55:48 goals, so thank you so much. >> 10:55:51 And, Allan, of course. >> Thanks. No questions, 10:55:54 just continued kudos to the 10:55:57 PHB team and the work you are doing. It is so appreciated 10:56:00 from members of the community. >> 10:56:04 Thanks, everyone, for being a part of the meeting today. What 10:56:08 an incredible amount of work that is happening with all the 10:56:12 presentations, all the buildings that are being 10:56:15 opened. The progress continues to happen. It 10:56:18 is a testament to the commitment for this 10:56:23 valued work. And being flexible 10:56:26 who newelled be here right now whom knew that things would 10:56:29 be, oh-we. 10:56:33 So out of anticipated pace 10:56:37 and causes such flexibility and 10:56:40 adjustments. Big congratulations to all of you doing this work and on it do 10:56:44 it. Congratulations to those transitioning and 10:56:47 moving into new pleases, moving into new seats. Excited about 10:56:50 the work that is in front of us. 10:56:54 For those who continuously come to the