May 24, 2023 AAHFC

[1. Meeting called to Order The AAHFC Board of Directors is meeting in accordance with Chapter 551 of the Texas Government Code (Open Meetings Act). As such, the Board of Directors reserves the right to retire into executive session concerning any of the items listed on this Agenda whenever it is considered necessary and legally justified under the Texas Open Meetings Act.]

[00:00:03]

GOOD MORNING.

IT IS MAY THE 24TH.

2020 THREES.

UH, SUNDAY, AFTER 11:00 AM WE CALL THE ALAMO AREA HOUSING FINANCE CORPORATION FOR DIRECTOR.

WE NEED TO ORDER, IF WE CAN HAVE A PHONE CALL, PLEASE.

YES, SIR.

JUDGE EVANS.

HERE.

MR. WILTON.

HERE.

JUDGE CAMACHO.

HERE.

MAYOR DOON.

HERE.

COUNCILMAN BLAKEY? HERE.

COMMISSIONER HARRIS.

JUDGE.

HEAD KEY.

JUDGE JONES.

HERE.

JUDGE KRAK.

JUDGE LUTZ.

HERE.

JUDGE STK.

MS. VAN CURRAN.

JUDGE WHITMAN.

DEAR, DO YOU HAVE A THANK YOU? ANY CONFLICT INTEREST TO BE DECLARE? I REMIND IF ANYONE IS ON THE, THE ZOOM MEETING, YOUR ORDER TO BE COUNTED.

PRESENT.

WE HAVE TO BE ABLE TO HEAR AND SEE YOU VOTE.

SO BE HERE THAT YOU'RE NOT MUTED.

MUTED.

AND MAKE SURE THAT, THAT YOU PICTURES.

SO NO PUBLIC COMMENTS? NO SIR.

PUBLIC COMMENTS.

I'M SORRY.

NO PUBLIC COMMENTS.

UH, ANY NEW BUSINESS? UNDER ALL BUSINESS? WE HAVE CONCLUDE

[ Consent Agenda The consent agenda consists of items considered being of a routine nature and contains items recommended for approval by the Board Chair and the minutes from previous Board of Directors meetings. These items will be enacted in one motion, or any member of the Board may request that items be removed from the consent agenda and considered separately for purposes of discussion and voting.]

BLAKEY IN FAVOR? AYE.

OPPOSED? OPPOS PASSE.

NOW NEW

[6. Consider and act upon the election of the AAHFC President and Vice President.]

NEED TO SELECT THE VISIT.

THE VICE PRESIDENT IN THE, WE HAVE THREE YEAR TERMS, I THINK.

IEM TERM BACK .

WE NEED TO, HE'S NOT HERE.

.

I THINK THOSE ARE CRICKETS.

I HEARD THE CRICKETS, SIR.

THEY DID SOMEBODY ON THE, THE SCREEN.

YEAH.

OH, PICK ONE OF THEM.

WE JUST LOST THEM.

BABY LIFE.

WE HAVE VOLUNTEERS.

I DON'T EVEN KNOW WHAT WE'RE DOING.

DEFINITELY SILENCE.

IS THAT WHAT IT, I DON'T EVEN KNOW WHAT WE'RE DOING SUCH A GOOD JOB WITH THE YEARS, BUT I'M NOT GOING TO BE SITTING NEXT TO YOU AND GET HIT LIKE I DID LAST TIME.

APPOINT.

THANK YOU.

I HAVE A MOTION THAT WE RETAIN YOU AS PRESIDENT.

I'LL SECOND THAT.

MOTION.

SECOND DISCUSSION.

THAT'S A MAXIMUM TERM FOR THREE YEARS.

, ANY OF THE NOMINATIONS? AYE.

OKAY.

CONGRATULATIONS.

THANK YOU, .

CONGRATULATIONS, JUDGE.

VICE PRESIDENT, OBLIGATIONS.

ONE OF YOU JUDGES.

WOULD YOU LIKE TO BE VICE PRESIDENT? HE DOES ALL THE WORK.

YOU JUST SIT HERE AND I DON'T E I I DON'T EVEN KNOW WHAT WE'RE DOING YET, SO I DON'T FEEL LIKE I'M, LIKE, I PERFECT.

I'M GETTING BETTER.

WAY TO, I DON'T TRUST TO BE LED DOWN INTO THE PIT.

I SET THE MOMENT.

OH, IT'S GOOD.

BY JUDGE EDGEMAN.

MR. JONES, WOULD YOU LIKE IT? UH, THEN I'LL NOMINAT.

I WON'T OBJECT.

IF YOU WANNA MAKE A MOTION, NOMINATE DANIEL JONES.

I'LL SECOND.

SECOND.

NOMINATE JUDGE JONES.

HAVE ANY OTHER NOMINATIONS? HOLD IN FAVOR.

AYE.

AYE.

AYE.

GOT THAT ON THAT.

[7. Consider and act upon the recommendation to approve the January - April 2023 AAHFC Financial Report – Julio Elizondo A. Balance Sheet B. Revenues and Expenditures]

YES, SIR.

[00:05:09]

PERFECT.

GOOD MORNING, MR. CHAIRMAN, MEMBERS OF THE BOARD.

MY NAME IS HULU.

I'M HERE.

CHIEF FINANCIAL OFFICER.

YEP.

PRESENTING TO YOU ALL ON THE APRIL, 2020 FINANCIALS.

SO THERE ARE JUST A COUPLE OF STATEMENTS HERE.

WE HAVE THE BALLOT SHEET, UH, AT THE END OF APRIL.

WE HAVE TOTAL OF 850, UH, THOUSAND IN ASSETS AS WELL AS LIABILITIES.

MAJORITY OF THAT IS MADE UP OF CDS.

SO VESTED.

UH, WE'VE CURRENTLY GOT A COUPLE BOTH TWO C UH, THE INVESTMENTS ARE LOCKED UP TO TWO CDS THAT EXPIRE NEXT YEAR, MID MID 2024.

AND ON THE INCOME STATEMENT, UH, WE HAVE EARNED A LITTLE UNDER 3000 FOR THE YEAR ON INTEREST AND NOT THE ONLY ACTIVITY WE FOR TO DATE.

UH, AND THEN IN THE BUDGET SIDE SIDE, WE DO HAVE SOME, HAVE SOME DEVELOPMENT FEES THAT WE'RE HOPE.

UH, BUT THAT'S ALL I HAVE FOR YOU TODAY.

IF YOU HAVE ANY QUESTIONS, ANY QUESTIONS FOR ME, MEMBERS? OKAY.

THANK YOU.

THANK YOU SIR.

APPROVE THE, UH, BALANCE SHEET AND STATEMENT.

I HAVE A MOTION.

MOTION SECOND.

MOTION SECOND.

ANY DISCUSSION? ALL IN FAVOR? AYE.

AYE.

AYE.

PASSES.

[8. Explanation and briefing on the purpose of the Alamo Area Housing Finance Corporation. - Cliff Herberg]

ITEM EIGHT IS GONNA BE THE EXPLANATION OF WHO WE ARE, WHAT WE DO.

GOOD MORNING, MR. CHAIRMAN.

OH, THERE WE GO.

I GOT IT THIS TIME.

GOOD MORNING, MR. CHAIRMAN.

MEMBERS.

GOOD MORNING.

UM, PRIMARILY FOR THE BENEFIT OF OUR NEW MEMBERS, UH, DIANE ASKED ME GIVE YOU A LITTLE UPDATE OR A LITTLE BRIEF ON THE HISTORY OF, UH, HOUSING FINANCE CORPORATION AND, UM, IT'S CREATED OUR CHAPTER 3 94 TEXAS LOCAL GOVERNMENT CODE.

AND OF COURSE, IT IS TO HELP FINANCE THE COST OF AFFORDABLE HOUSING.

AND REALLY OUR, UH, HFC CAME, UH, BEING BACK IN 1984.

AND SOME OF YOU WILL RECALL THAT WAS A TIME OF VERY, VERY HIGH INTEREST.

MY UNDERSTANDING THAT IT, THE VEHICLE TO FINANCE SINGLE FAMILY HOMES PROVIDED LOW INTEREST MORTGAGES FOR QUALIFIED INDIVIDUALS.

UM, THE PURPOSE OF THE FINANCING CORPORATION OF THE FINANCE CORPORATION IS, IT IS, UH, AND THE BENEFITS IS THAT BENEFITS AND IMPROVES PUBLIC HEALTH AND WELFARE BY PROVIDING AFFORDABLE HOUSING TO SAFE, DECENT SANITARY HOUSING.

AS WE STATE IN THE BYLAWS, IT OF COURSE PROMOTES ECONOMY BY INCREASING ECONOMIC DEVELOPMENT AND ENCOURAGING MENT.

AND, UH, IT, UM, UH, ALLOWS, UH, LOW AND MODERATE INCOME EARNERS TO ACQUIRE, ACQUIRE THE TYPE OF HOUSING THAT, UH, AS THEY CAN EITHER PURCHASE, AS I SAID IN THE OLD DAYS, ISN'T THAT REALLY A SMALL AWAY NOW BY WHAT WE'RE DOING? HOUSING PROJECTS IN RENTING AND, AND CREATING, UM, APARTMENT UNITS.

UM, AFTER THAT INTEREST CRISIS ENDED, THE, THE, UH, THE INTEREST RATE CRISIS IN THE EIGHTIES ENDED, UH, THE HOUSING FINANCE CORPORATION LAY DORMANT FOR VERY MANY, MANY YEARS UNTIL WE WERE APPROACHED BACK IN ABOUT 2018.

DIANE AND I WERE TRYING TO REMEMBER HOW LONG IT'S BEEN, UH, WITH THE PROJECT FOR THE PECAN GROVE AFFORDABLE HOUSING APARTMENT COMPLEX THAT YOU GONNA SEE MORE ABOUT TODAY.

UH, THAT IS ALMOST COMPLETED.

I THINK WE HAVE A JUNE, IS IT SIXTH? NO.

UM, JUNE 15TH.

JUNE 15TH.

RIBBON CUTTING CEREMONY.

AND, UH, WE'RE EXCITED WITH THE PARTNERS THAT WE HAVE, UH, WITH LDG DEVELOPMENT, WHO'S DOING THE TWO CURRENT PROJECTS.

THEY'RE REALLY, UH, CLASS A SPACES, UH, REALLY VERY NICE APARTMENT YOU'RE GONNA SEE.

AND THEY ARE, UH, LDG IS A LONG TERM HOLDER OF THESE PROJECTS.

THEY REALLY DO NICE WORK AND THEY HOPE THEY MAINTAIN THE ASSETS.

SO THEY'RE REALLY A BENEFIT TO THE COMMUNITY.

AND THEY'RE NOT WHAT YOU THINK OF WHEN YOU, YOU HEAR ABOUT AFFORDABLE HOUSING, YOU THINK OF WHAT I REFER TO AS SECTION E HOUSING.

THIS IS REALLY AFFORDABLE HOUSING.

DIANE LIKES TO CALL THAT WORK WORKFORCE HOUSING, WHICH I THINK IS REALLY ONE.

IT IS.

THIS IS HOUSING FOR YOUR ENVIRONMENT.

YOUR POLICE OFFICERS, YOUR TEACHERS, PEOPLE IN THE COMMUNITY THAT HAVE, THAT ARE LIVING IN AREAS WE'VE SEEN SUCH EXPLOSIVE, THEY CAN'T AFFORD TO LIVE IN THE COMMUNITY THEY SERVE.

I KNOW WE'VE SEEN THAT ALL OVER THE RURAL AREA IS CURVE WITH FREDERICKSBURG AND ALL OF IT THAT'S BEEN GROWING.

THEY, THEY HAVE TO TRAVEL GREAT DISTANCE, JOBS, JOBS.

AND THIS IS, UH, INTENT TO PROVIDE THE KIND OF HOUSING THEY

[00:10:01]

UM, UH, AS I'VE MENTIONED, WE'RE DOING THE TWO PROJECTS, ONE IN AND ONE IN NEW LES THES PROJECT CALLED CON GROVE.

WE'RE GONNA HEAR ABOUT IT IN THE OTHER ONE IN NEW THIS OAK CREEK.

AND I NEED TO MAKE IT CLEAR GENERAL COUNSEL CONG, I AM NOT FOR THE HOUSING FINANCE CORPORATION BECAUSE THESE ARE INCREDIBLY COMPLEX FINANCING PROJECTS.

AND WHEN MR. PALMER, WHO GONNA HEAR FROM, FROM EARLIER, WHO IS THE BOARD'S LAWYER, IS RETAINED BY THE BOARD TO HAVE, HE'S ONE OF THE VIEW EXPERTS IN THE STATE KNOWLEDGE ON THIS.

UH, AS I WAS TELLING DIANE, DIANE YESTERDAY, WE ALL WENT, JIM SAYS SOMETHING TO ME.

I JUST NODDED MY HEAD AND PRETEND THAT I UNDERSTAND WHAT HE SAYING, UH, BECAUSE THEY ARE VERY COMPLEX, UH, UH, ARRANGEMENTS, UH, TO GET THESE TAX CREDITS AND, AND THE BENEFITS OF THESE PROJECTS.

SO YOU'LL HEAR MR. PONDER SHORTLY.

BUT, UH, HE HAS BEEN, UH, INSTRUMENTAL IN GUIDING HOUSING FINANCE CORPORATION.

VERY PLEASED WITH THE PROJECTS THAT WE'VE SEEN THAT WE'VE GOTTEN.

AND OF COURSE YOU HAVE A THIRD ONE UP CONSIDERATION IN BANDER, UH, COUNTY NOW.

AND, UH, SO THAT WOULD BE THE TOTAL THAT WE, THE TOTAL OF THREE PROJECTS THAT WE HAVE ON OUR, UH, BAND DERRICK OH, AND BERNIE.

I'M SORRY, FORGOT BERNIE.

YES, BERNIE AS WELL.

UH, SO FOUR PROJECTS.

PROJECTS.

UH, AND SO THEY'RE EXCITING.

AND HOUSING FINANCE CORPORATION SAT DORMANT FOR MANY, MANY YEARS WITHOUT ANY TO ITS NAME.

AND AS YOU JUST HEARD, A PROJECTED FUND BALANCE IF WITH THIS NEW PROJECT.

BUT WHEN WE STABILIZED AND, AND GET OUR NEW FEES PUT ABOUT A MILLION DOLLARS AS A TOTAL FUND BALANCE FOR THAT HOUSING FINANCE CORPORATION, WHICH LEADS, UH, ALL OF YOU SOME OP OPPORTUNITIES FOR YOUR VARIOUS COMMUNITIES TO USE THAT AT MONITA TO DO THINGS AS YOU SEE FIT.

SO IT'S BEEN A, A NICE FOR A BOONE FOR THE, UH, HOUSING FINANCE CORPORATION.

AND, UM, WITH THAT, I'LL BE GLAD TO ANSWER THREE QUESTIONS.

I CAN, BUT THAT, THAT JUST GIVES YOU A, A THUMBNAIL SKETCH OF WHAT HFC HAS DONE IN THE PAST AND IS DOING NOW.

I WOULD JUST POINT OUT THAT THE BYLAWS ARE INCLUDED IN THEIR NEEDING PACKET.

YES.

THE ARE COMPLETE BYLAWS.

UH, JUDGE EVANS POINTED AT YOU, YOU ALL SERVE A THREE YEAR TERM WITHOUT TERM LIMITS, I THOUGHT SAID THREE YEAR TERM LIMITS.

, I MIGHT DISCUSS RELATIONSHIP WITH A FINANCE CORPORATION.

I DON'T KNOW.

SAME RELATIONSHIP EXCEPT AS AFFILIATED RELATIONSHIP AND HOW IT CAME BACK IN THE EIGHTIES.

I CAN'T, CAN'T GIVE YOU MUCH INFORMATION ON THAT.

BUT I MEAN, IT IS A SEPARATE STAND HOME, UH, AFFILIATED ENTITY.

SO, AS YOU CAN SAY, HAS ITS OWN SEP SEPARATE BOARD.

IT'S OWN SEPARATE, UH, THE PURPOSE, I THINK THE PURPOSE OF HAVING THIS CORPORATION OTHER THAN TO GET TO GET HOUSING IS IT CREATES INCOME.

THEN THE MEMBER GOVERNMENTS ABLE TO ACCESS THAT MONEY TO GRANTS.

RIGHT.

AND I THINK IF I YOUR RIGHT, YOU ALL THESE PROJECTS ARE BOARDED IN FOUR OR FIVE YEARS, WE'LL HAVE FOUR OR $5 MILLION.

YES.

YES.

AND, AND I WILL LEAVE THAT TO MR. PALMER TO EXPLAIN IN BETTER DETAIL.

BUT FOR INSTANCE, THE, THE WAY THE OAK CREEK PROJECT IS, IS FUNDED AND FINANCED AND STRUCTURED.

ACO ACTUALLY, I'M SORRY, HFC ACTUALLY OWNS THAT PROJECT.

AND SO THERE ARE SOME BUYOUT PROVISIONS ABILITY TO SELL THAT.

I MEAN SELL THAT, THAT PROPERTY IN THE YEARS IN THE FUTURE COULD GENERATE A LARGE WINDFALL FOR THE HOUSING FINANCE COR CORPORATION, THE FUTURE.

SO YEAH, THESE PROJECTS HAVE BEEN BEEN A BOON FOR THE HOUSING FINANCE CORPORATION.

AND FOUR, YOUR COMMUNITIES, AS I MENTIONED YOU, THE ABILITY TO PROVIDE THAT MONEY TO DO THE THINGS THAT YOU NEED.

UH, COUNTIES I DO NEED TO POINT OUT THAT THE HFC SERVES THE RURAL COUNTIES THAT NOT SERVE BEAR COUNTY.

AND ONE MORE THING I FORGOT TO MENTION IS, UH, DIANE AND THE BOARD HAS BEEN VERY CAUGHT MAKING SURE THAT WE HAVE LOCAL SUPPORT BEFORE WE GO ANY COMMUNITY.

BUT, YOU KNOW, THIS IS SOMETHING THAT WE WORK IN PARTNERSHIP WITH THE LOCAL OFFICIALS TO MAKE SURE THAT THIS IS A PROJECT THAT IS DESIRABLE AND WANTED BY THAT LOCAL, LOCAL AREA.

IN THE PAST, IT HASN'T BEEN A BIG DEAL.

CASH COW, SOME OF US WILL BE HERE, BUT ARIA REMEMBERED THAT USED TO BE USED BY NOVEMBER.

GOVERNMENTS JUST A FEW SHORT YEARS.

IT'S ACCUMULATOR A MILLION.

AND WHEN OAK CREW COMES ON, MORPH FEES QUITE SOON.

DOES ANYBODY HAVE ANY, ANY QUESTIONS? THANK YOU.

[00:15:01]

[9. Project update on the status of the Pecan Grove Apartment complex project located at 1231 W. Court St., Seguin, Guadalupe County, TX. - Jake Brown ]

WE HAVE A, UH, UPDATE ON DEPART COMPLEX.

THAT TWO THERE.

YOU GUYS HEAR ME OKAY? YEAH.

CAN YOU RUN INTO THE PRESENTATION OR DO YOU WANT ME? CRYSTAL IS GONNA RUN IT.

CAN, CAN YOU GUYS SEE IT IN THERE? UH, SHE'S BRINGING IT.

THIS IS BRINGING IT UP.

OKAY.

UH, GIVE ONE SECOND.

AND FOR THOSE OF US HERE, IT'S IN OUR NOTEBOOKS ALSO.

OKAY.

UM, EVERYBODY CAN SEE THE PRESENTATION.

GOOD TO GO? YES.

GREAT.

YEAH, SO, UH, THOSE SOUNDS LIKE WE'VE GOT SOME NEW FACES HERE ON THE BOARD.

SO FOR THOSE OF YOU THAT DON'T KNOW ME, UH, MY NAME'S JAKE BROWN, I'M WITH LDG DEVELOPMENT.

SO, UM, GOSH, IT'S PROBABLY BEEN FOUR YEARS NOW WHEN I ORIGINALLY APPROACHED, UH, DIANE, I THINK IT WAS BACK IN 2019 OR 2020, UH, ABOUT THIS PROJECT IN PARTICULAR, ROVE AND GUI.

SO, UM, YOU, WE'VE, WE'VE BEEN FORTUNATE TO, TO KIND LUKE WHITE LITERALLY BUILT THIS FROM THE GROUND UP, BOTH THE PROJECT AND THE RELATIONSHIP.

SO, UM, IT'S, UH, GOOD TO MEET YOU GUYS VIRTUALLY AND LOOK FORWARD TO HOPEFULLY MEETING YOU GUYS AT, AT THE GROUND FOR THE GRAND OPENING.

I SHOULD SAY GROVE HERE A COUPLE WEEKS.

UM, BUT MY PRESENTATIONS CAN BE THANKFULLY REALLY SHORT AND SWEET OFF THE PINE GROVE CAUSE WE'RE JUST KIND, WE'RE ALMOST AT THE 100% FINISH LINE.

UM, IF YOU WANNA BUMP TO THE NEXT SLIDE, I'M JUST GONNA GIVE YOU A QUICK UPDATE OF, OF WHERE THINGS CURRENTLY STAND.

SO I WAS OUT THERE A COUPLE WEEKS AGO, UM, AND WITH THE ACCEPTION OF SOME MINOR LANDSCAPING ITEMS AND, AND WHAT I WOULD DESCRIBE AS KIND OF PUNCHLESS TYPE THINGS, UM, WE'RE JUST RIGHT THERE AT THE FINISH LINE BEING A HUNDRED PERCENT DONE.

WE'VE GOT FOLKS ACTUALLY LIVING IN UNITS RIGHT NOW.

WE'RE JUST KIND OF IN THE CLEANUP PHASE.

AND SOME OF THE PHOTOS YOU'LL SEE, UH, YOU'LL SAY YOU'RE CRAZY.

IT LOOKS LIKE A DISASTER OUT THERE.

BUT THOSE PHOTOS ARE A LITTLE BIT OLDER THAN I CAN ASSURE YOU.

IT LOOKS A LOT BETTER ON SITE RIGHT NOW THAN IT DOES IN IN THE PHOTOS THAT I'LL SHOW YOU.

BUT, UM, LIKE I SAID, WE'RE, WE'RE KIND OF WRAPPING THINGS UP RIGHT NOW.

UM, THE NEXT STEP IS WE KIND OF HIT THAT 100% COMPLETION BENCHMARK, WHICH IS A HUGE DEAL, OBVIOUSLY.

UH, I MENTIONED THAT WE'VE GOT FOLKS LIVING IN THERE.

I CHECKED THE LISA OR THE OCCUPANCY REPORT THIS MORNING.

UH, AND WE, WE JUST WROTE THE 70% THRESHOLD, WHICH IS HUGE.

UM, SO WE'RE 70% OCCUPIED AS OF TODAY, 70.2% OCCUPIED AS OF TODAY.

UH, I WOULD EXPECT, YOU KNOW, THE BIG BENCHMARK IS, IS GONNA GETTING TO 90 AND ONCE YOU BREAK THAT 90 THRESHOLD, EVERYBODY STARTS JUMPING UP AND DOWN AND GET GROWTH SIDED.

SO I THINK PROBABLY HERE IN THE NEXT MONTH OR SO, AT THE RATE WE'RE GOING, UH, ESPECIALLY NOW THAT THE SCHOOL IS OUT, UM, THINGS HAVE KIND OF DIED DOWN A LITTLE BIT AND PEOPLE'S LIVES HAVE CALMED DOWN.

UH, I, I WOULD EXPECT THAT TO RAMP UP EVEN MORE AND PROBABLY BREAK THAT 90% MARKETER PRETTY SHORT ORDER.

SO, UM, YOU KNOW, LAST THING ON MY LIST THERE IS, IS FINISHED LEASE UP, WHICH I EXPECT TO HAPPEN OVER THE SUMMER AND THEN ALSO TO, UM, YOU KNOW, ONCE WE GET RID OF THOSE, UH, KIND OF CLEAN UP THINGS A LITTLE BIT MORE AND KNOCK OUT THOSE LAST FEW PUNCH LIST ITEMS, WE'LL HIT THAT A HUNDRED PERCENT COMPLETION.

SO THAT'S KIND OF THE, THE LAST FEW THINGS THAT NEED TO HAPPEN AND, AND WE CAN MOVE THIS ONE INTO FULL OPERATIONAL STAGE.

BUT IF YOU WANNA BUMP TO THE, TO THE NEXT COUPLE SLIDES HERE, WE CAN JUST SHOW YOU A COUPLE PICTURES FOR THOSE OF YOU THAT HAVE BEEN OUT THERE LATELY.

SO, UM, RIGHT HERE IN THESE PHOTOS, DOESN'T LOOK, IT DOESN'T LOOK NEARLY AS DONE AS IT IS OUT THERE RIGHT NOW, BUT, UH, 99% OF OF THE WORK HAS BEEN DONE.

WE'VE GOT SIDING AND STONE VENEER ON ALL THE BUILDINGS, SO THEY LOOK FAR MORE FINISHED IN PERSON THAN THESE PICTURES DO.

I JUST DIDN'T HAVE AN OPPORTUNITY TO GET, GET SOME UPDATED PHOTOS.

UM, AND IF YOU WANT TO GO TO THE NEXT SLIDE, UM, YOU CAN KIND OF SEE THEM CLEANING UP THE HUMIDITY AREAS HERE.

UH, I MENTIONED IN ONE OF THE FIRST COUPLE SLIDES THAT YOU WE'RE LANDSCAPING'S ONE OF THE LAST THINGS THAT THAT WILL GO IN.

SO, UH, BY THE TIME WE'VE GOT THE GRAND OPEN, THE GRAND OPENING RIBBON CUTTING HAPPENING, THERE ARE BE LANDSCAPING AND GRASS EVERYWHERE.

SO IT'LL JUST BE A DIRT PIT SURROUNDED BY CONCRETE.

A LOT BETTER THAN IT PHOTOS.

UM, AND IF YOU WANNA BUMP TO THE LAST SLIDE, I, I INCLUDED THIS JUST SO YOU GUYS CAN KINDA USE THE REFERENCE, YOU KNOW, THIS, I THINK I INCLUDED THIS CUZ I THINK THIS IS THE FIRST RENDERING OF WHAT I SHOWED DIANE, WHAT WE WERE TRYING TO DO.

SO NOW TO ACTUALLY REALLY HAVE PHOTOS OF WHAT WE DID

[00:20:01]

SO, UM, WITH THAT, I, I WOULD CLOSE AND, AND JUST TO LET YOU GUYS KNOW THAT, UM, YOU KNOW, WE'VE GOT, UH, AND I THINK DIANE, THE INVITE FOR EARLIER THIS WEEK OR MAYBE LAST WEEK, BUT WE'VE GOT THE GRAND OPENING EVENT, THE RIBBON CUTTING EVENT COMING UP ON JUNE THE 15TH AT 10 O'CLOCK ON SITE.

SO THERE'LL BE A, A BIG TO-DO WITH A, A LITERAL RIBBON CUTTING.

UH, AND I'M SURE PLENTY OF PHOTO OPPORTUNITIES AND, AND ALSO AN OPPORTUNITY FOR YOU GUYS TO TAKE SOME TOURS AND LOOK AT THE UNITS AND REALLY SEE THE FINISHED PRODUCT I INTENTIONALLY DID NOT INCLUDE OF THOSE, UH, OF THE INSIDE OF THE UNITS IN MY PRESENTATION.

JUST AS KIND OF AN INCENTIVE FOR YOU GUYS TO COME OUT THERE AND SEE IT FOR THE FIRST TIME ON THE INSIDE AND JUST BE TOTALLY FLOORED.

UM, I TOLD THE SUPERINTENDENT THE GUY THAT'S ON SITE OUT THERE ON A DAILY BASIS, AND I'M, AND THIS IS A TRUE STATEMENT AND I'M REALLY NOT JUST BLOWING SMOKE OR MAKING THIS UP.

I REALLY BELIEVE THAT THIS BASICALLY THE BEST LOOK PROPERTY IN THE LDG BOARD.

I MEAN, IT'S BRAND NEW, IT'S PHENOMENAL, IT LOOKS FANTASTIC.

UH, YOU KNOW, I OBVIOUSLY WE HOLD THINGS TO A HIGH STANDARD AND EXPECT THEM TO, TO COME OUT THE WAY THAT WE'VE ENVISIONED, BUT THIS ONE FAR HAS EXCEEDED MY EXPECTATIONS AND, AND I HOPE IT WILL FOR YOU GUYS AS WELL.

BUT, UH, I JUST WANTED TO END THAT ON, ON A HIGH NOTE AND CERTAINLY HOPE YOU ALL CAN JOIN US AND, UH, AT THE GROUND OR THE GRAND OPENING OF EVENT ON, ON THE 15TH AND HOPEFULLY LOOK FORWARD TO MEETING SOME OF THE NEW FACES.

BUT THAT'S IT FROM ME ON THE CONROE.

I'M MORE THAN HAPPY TO ANSWER ANY QUESTIONS THAT YOU GUYS MAY HAVE.

I WOULD JUST LIKE TO SHARE WITH THE BOARD THAT I GET UPDATES EVERY SINGLE DAY OF THE WORK THAT'S BEEN DONE WITH PICTURES.

SO EVERY DAY I HAVE A LIST OF WHAT THEY DID AND I HAVE PICTURES OF WHAT IT LOOKS LIKE THAT DAY.

I'LL SAY, WHEN WE GET TO NEW BRAUNFELS, I GET LOTS OF DAILY UPDATES.

FOR SOME REASON PECAN GROVE, I GOT ONE, I GET MULTIPLE ONES FOR NEW BROTHELS AND I'M LOOKING FORWARD TO Y'ALL SEEING THE INTERIORS CUZ THEY'RE VERY PRETTY, THEY'RE, THEY'RE LOVELY APARTMENTS INSIDE.

AND IF I REMEMBER CORRECTLY, JAY CORRECT ME, THIS IS 199 UNITS AND IT'S RIGHT ACROSS 1 98, 1 98 AND IT'S ACROSS FROM T L U.

SO THAT'S ABOUT FOR SOME OF Y'ALL TO UNDERSTAND WHERE IT IS.

THAT'S ABOUT WHERE IT'S LOCATED.

AND I KNOW MAYOR, THE MAYOR'S ON THE, UH, CONNECTED WITH US.

SO I DON'T KNOW IF SHE WANTS TO ADD ANYTHING TO IT.

ALSO JUDGE IN THE COMMENTS.

DIANE, THANK THIS IS DONNA.

YES.

UM, I WANNA JUST SAY, JAKE, I HAVEN'T MET YOU IN PERSON, BUT I DRIVE BY THERE ALL THE TIME AND IT LOOKS REALLY, REALLY NICE.

UM, AND SO I APPRECIATE THAT IT'S IN, UM, ONE OF OUR OLDER PART OF TOWNS, UM, THAT BEGAN BECAUSE T O U AND THE PROFS AND THINGS LIVE IN THAT AREA, SO IT'S PERFECT.

UM, IT'S VERY ACCESSIBLE.

UM, I THINK THE FOLKS LIVING THERE, UM, HAVE EASY ACCESS IN AND OUT AND TO DIFFERENT THINGS AT DIFFERENT PLACES.

SO IT HAS LOOKED GOOD.

AND I WILL TELL YOU THAT THE LANDSCAPING IS VERY NICE EVERYONE.

SO, UM, IT DOES LOOK GREAT.

THANK YOU VERY MUCH.

LOOK FORWARD TO MEETING YOU.

THANKS FOR THE KIND WORDS.

ANY OTHER QUESTIONS OR COMMENTS FOR JAKE ON THE CON GROVE? I'M CURIOUS IF I CAN ASK A QUESTION.

WHAT ARE THEY GOING TO RENT FOR, RIGHT? SURE, YEAH, I'LL, I'LL GET YOU THE CURRENT MENTAL RATE.

SO IT'S BEEN ADJUSTED A LITTLE BIT HERE RECENTLY.

UH, I CAN TELL YOU THAT THERE'LL BE JUST FOR A ONE BEDROOM, IT'LL BE AROUND $900.

BUT WHAT I'LL DO AT THE CONCLUSION OF THIS IS I'LL SEND YOU THE CURRENT LEASE, EXCUSE ME, THE CURRENT LEASE RAISE FOR EACH BEDROOM BASED ON FAMILY SIZE.

SO YOU GUYS HAVE ALL THAT INFORMATION.

AND DON'T THINK I'M DODGING YOUR QUESTION, IT'S JUST THERE'S A LOT OF FACTORS THAT GO TO HAVE PREDOMINANTLY CURRENT, OBVIOUSLY BY BEDROOM SIZE BUT ALSO BY FAMILY SIZE AND HOUSEHOLD INCOME.

SO, UH, I WILL TELL YOU AGAIN THAT FOR A ONE BEDROOM IT'S AROUND $900.

BUT I'LL SEND YOU, I'LL SEND THAT ALL THAT INFORMATION TO SUSIE AND I CAN SURE YOU GUYS SECONDS AND YOU MIGHT REMIND THE MAYOR HOW THIS, UH, COMPLEX IS STRUCTURED WITH 50%, UH, BEING OVER 60% OF AMI.

BUT IF YOU HAVE THOSE FIGURES AT HAND OR IF NOT, I CAN SEND THAT TO YOU MA'AM.

OKAY, THANK YOU.

SURE, I'LL, I'LL INCLUDE THAT.

BUT JUST FOR REFERENCE, THIS, THIS ONE IS 60% AND JUST EVERYTHING'S AT 60% AMI.

UH, AND THEN THE OTHER ONE WE'LL TALK ABOUT THE MOMENT IN NEW ORLEANS IS AN 80% AMI.

BUT I'LL TELL YOU WHAT I'LL DO IN, IN THE INFORMATION THAT I SEND ABOUT THE LEASE, THE RENTALS AND ALL THAT GOOD STUFF, I'LL ALSO INCLUDE A BREAKDOWN OF OF THE AMI FOR BOTH PROPERTIES, BOTH PINE GROVE AND CREEK, JUST SO FOLKS HAVE THAT THEY SEE.

THANK YOU.

YEAH, CAN I GET THAT INFORMATION AS WELL? I GUESS SEND IT TO EVERYBODY.

AND THAT WAS MY QUESTION.

THANK YOU FOR ASKING CUZ I WANTED TO LOOK AT AN EXAMPLE OF SOMEONE, A SCHOOL TEACHER COMING IN MAKING $45,000 A YEAR.

HOW, WHAT'S THE PROCESS THEY GOTTA GO THROUGH BECAUSE I'M SURE PEOPLE, SURE AGAIN, THEY'LL GO THROUGH YOU GUYS AND DO GREAT WORK, BUT SOMETIMES

[00:25:01]

ANYWAY, SHE'D LIKE TO BE IN TOWN.

BUT UM, ANYWAY, THANK YOU.

THAT INFORMATION WILL HELP.

WELL I'M TELLING YOU THAT, I MEAN, AND THIS GOES FOR ANY OF YOU GUYS.

IF YOU EVER HAVE SOMEBODY THAT WANTS MORE INFORMATION OR FOR SOME REASON FEELS LIKE THEY'RE NOT GETTING INFORMATION FROM SOMEBODY ON, ON OUR ONSITE TEAM OR JUST WANTS TO GET AHEAD OF THE GAME AND GET INFORMATION BEFORE YOU EVEN START LEASE UP LIKE ON THE OAK CREEK PROPERTY, YOU ARE MORE THAN WELCOME TO GIVE THEM MY CONTACT INFORMATION AND MY CELL PHONE NUMBER AND I'LL GET IN CONTACT WITH THEM DIRECTLY.

UM, BUT YOU KNOW, STANDARD OPERATING PROCEDURE AT ALL OF OUR DEVELOPMENTS SINCE THEY'RE INCOME RESTRICTED AND INCOME BASED ON WHO WE LEASE DO.

AND THAT'S OBVIOUSLY RULE NUMBER ONE IS WE MAKE SURE THAT THEY QUALIFY BASED ON THEIR INCOME.

BUT THEN THERE'S A WHOLE HOST OF THINGS INCLUDING, YOU KNOW, BACKGROUND CHECKS AND REFERENCES, INCOME VERIFICATIONS AND ALL OF THAT GOOD STUFF.

SO THERE'S A VERY, VERY THOROUGH PROCESS THAT WE GO THROUGH AND YOU KNOW, A LOT OF FOLKS I'M SURE HEARD STORIES ABOUT SOME OF OPERATORS THAT, YOU KNOW, THEY'RE JUST THERE, THEY DON'T CARE WHO'S LIVING THERE CUZ THE MONEY'S GREEN TO DENI REGARDLESS.

YOU KNOW, THE, ONE OF THE MOST IMPORTANT THINGS, IF NOT THE MOST IMPORTANT THING IS THAT WE'RE LEASING TWO QUALITY INDIVIDUALS THAT NOT ONLY CAN MAKE THE RENT BUT ARE ALSO GONNA TAKE CARE OF THE PROPERTY AND TREASURE IT LIKE WE DO.

UM, SO THAT, THAT'S PARAMOUNT FOR US.

BUT I'LL, I'LL ALSO INCLUDE IN THE OTHER INFORMATION THAT I'VE SENT, UM, A LIST OF LIEUTENANT INCOME OR LIEUTENANT VERIFICATION REQUIREMENTS THAT WE GO THROUGH.

UH, AND THAT APPLIES TO ALL PROPERTIES.

DID YOU HAVE TO YEAH.

AND REMIND US TOO, I THINK MOST OF THE PROPERTIES YOU HAVE THROUGHOUT THE UNITED STATES, YOU GUYS STILL MANAGE, YOU DON'T JUST SELL IT OFF TO, RIGHT? THAT WAS A BIG SELLING POINT FOR ME, RIGHT? ABSOLUTELY.

AND I, I WILL TELL YOU THAT UP UNTIL A YEAR OR TWO AGO, I COULD SIT HERE AND TELL YOU THAT WE'VE NEVER SOLD AN ASSET.

NOW IF I TOLD YOU THAT RIGHT NOW, I'D BE LYING TO YOU CAUSE WE FINALLY SOLD THREE, NOW WE'VE DONE OVER A HUNDRED AND SO WE'VE ONLY EVER SOLD THREE IN OUR EXISTENCE.

SO, YOU KNOW, I I WOULD SAY IT'S A PRETTY GOOD SUCCESS RATE.

BUT YOU KNOW, WE, THE COUNCILMAN BLAKE'S POINT, I MEAN THAT, THAT IS OUR MISSION.

WHAT WE DO.

WE DEVELOP OLD LONG TERM HOLDERS.

UH, I CAN TELL YOU THAT AT THE TIME WHEN WE SOLD THOSE THREE, WE REALLY DIDN'T EVEN WANT TO SELL 'EM.

BUT WE HAD HELD 'EM AT THE TIME FOR CLOSE TO 20 YEARS.

UH, AND THE MARKET WAS RIGHT, IT JUST MADE SENSE AND ALLOWED US TO DO SOME OTHER THINGS.

UM, BUT YES, VERY MUCH SO NO DIFFERENT WITH THESE TWO.

OUR INTENT IS TO THEM, YOU KNOW, OR PUBLICLY MY, BEYOND MY LIFETIME IF WE CAN.

SO, UH, VERY MUCH IN THE BUSINESS OF DEVELOPMENT ALL AND I THINK REALLY AND TRULY THAT THAT'S KIND OF HOW, NOT KIND OF, I MEAN IT IS HOW WE'RE ABLE TO MAINTAIN, ENSURE THAT NOT ONLY THE STANDARD THAT WE'RE EXPECTING THE DEVELOPMENT TO OPERATE AT, BUT ALSO ENSURED THE AFFORDABILITY OF OUR EXPERIENCE.

AND THAT, THAT'S, THAT'S THE OTHER PIECE OF IT TOO IS WE'RE NOT, WE'RE NOT JUST DEPARTMENT GUYS AND GALS.

I MEAN WE'RE, WE ARE AFFORDABLE HOUSING PEOPLE AND THAT'S REALLY TRULY WHAT WE BELIEVE IN AND BE ABLE TO BE IN THE OWNERSHIP AND OPERATE IN A LONG TERM IS THE WAY THAT WE CAN INSULATE AND CREATE, ENSURE THAT THAT AFFORDABLE HOUSING STAYS IN PLACE.

BUT CASA MCG, I'LL INCLUDE THAT INFORMATION IN WHAT I SEND TO DIANE AND SUSIE.

UM, AND ALSO TOO, IF FOLKS WANT MORE INFORMATION ABOUT ANYTHING, YOU GUYS ARE WELCOME TO REACH OUT TO ME DIRECTLY ORDER TO, TO DIANE OR SUSIE OR WHOEVER AND I'LL, I'LL GET YOU ANY INFORMATION, BUT I'LL, I'LL INCLUDE ALL THAT STUFF AND WHAT I SAID IN THE DAY THAT WE TALKED ABOUT.

AND JAKE, IS THAT YOUR STAFF THAT'S THERE ON SITE MANAGING IT OR IS THAT A THIRD PARTY? THAT'S OUR STAFF.

SO THAT'S, I SHOULD HAVE INCLUDED THAT IN MY UPDATE.

SO, UM, ONE OF THE THINGS THAT WE'VE DONE SINCE UH, WE ORIGINALLY CLOSED THE CLIENT GROW SPECIFICALLY IS THAT WE'VE ACTUALLY STARTED OUR OWN PROFIT AGAIN.

AND SO THE REASON THAT WE DID THAT ARE THE SAME REASONS THAT I TALKED ABOUT A MOMENT AGO, IS JUST BEING ABLE TO ENSURE THAT THE PEOPLE THAT ARE ONSITE ARE WORKING FOR LG AND THEIR INTERESTS AND THEIR MISSION IS ALIGNED WITH OURS TO ENSURE THAT THAT PROPERTY IS PERFORMING AND OPERATING AT THE STANDARD THAT WE'RE EXPECTING TO.

SO THE FOLKS THAT YOU SEE AND INTERACT WITH ON STAFF ARE PART OF THE LG FAMILY.

THEY ARE DIRECT EMPLOYEES, UH, YOU KNOW, WE KNOW THEM, WE WORK WITH THEM.

IT'S NOT SO FROM THIRD PARTY, UH, SOME, SOME THIRD PARTY MEETING.

THANK YOU.

AND I WILL SAY WHEN YOU, YOU SAY THAT THE DREAM IS TRUE FOR OAK CREEK AS WELL, SO I'LL JUST ADD THAT UP.

I I WILL SAY THAT I CAN VOUCH THAT WHEN YOU HAVE SOMEONE CALLING WITH QUESTIONS, HE DOES GET BACK TO YOU.

CUZ WE HAD A COUPLE OF TENANTS A YEAR AGO THAT WERE VERY INTERESTED IN SEGUI AND VERY INTERESTED TO MAKE SURE THEY COULD GET A LEASE.

AND SO I REFERRED HIM TO JAKE AND THEY FOLLOWED UP.

OKAY, ANYTHING ELSE FROM CON GROVE?

[00:30:02]

THIS IS DONNA AGAIN.

I JUST WANTED TO SAY THAT THE $900 PER MONTH, IF IT'S, I KNOW IT'S THE LOWER END, BUT THAT'S BELOW OUR AVERAGE, UM, RENTAL INCOME FOR OUR WORKFORCE HOUSING.

AND SO THAT'S VERY, VERY NICE AND VERY, VERY, UM, CONDUCIVE TO WHAT WE NEED TO DO IN OUR PLANS.

THE OTHER THING IS I'VE HAD NO, I'VE HEARD NO CONCERNS AND I'VE DOUBLE CHECKED AS IN REGARD TO FOLKS, UH, BEING ABLE TO GET IN AND GOING THROUGH THE PROCESS.

OKAY, THAT'S GOOD TO NOTE.

THANK YOU.

OKAY,

[10. Project update on the status of the Oak Creek Apartment complex project located at 109 Oak Creek Way and South IH 35 Frontage Road in New Braunfels, Comal County, TX. - Jake Brown]

YEP, I'M HAPPY TO DO THAT.

UH, UP.

OKAY.

OAK CREEK.

UM, THIS BE A LITTLE BIT LONGER JUST CAUSE WE'RE STILL IN THE CONSTRUCTION PHASE, BUT, UM, FOR THOSE, FOR THE FOLKS THAT ARE NEW THAT AREN'T FAMILIAR WITH THIS ONE, THIS ONE'S IN NEW BRAMBLES, UH, ON THE NORTH SIDE OF TOWN JUST OFF OF MY 35.

UM, FANTASTIC LOCATION.

UH, WE WERE REALLY, REALLY FORTUNATE TO, TO GET LEAKED UP WITH THE GUY THAT THAT OWNED THIS PROPERTY.

UH, IT WAS REALLY GOOD OPPORTUNITY FOR US AND YOU GUYS AS WELL.

AND NOW WE'RE STARTING TO, TO FINALLY SEE IT COME TO FRUITION.

BUT, UH, THIS ONE'S ABOUT 300 UNITS OR NOT ABOUT IT IS 300 UNITS.

UH, IT'S A MIXTURE OF, UH, AFFORDABLE AND MARKET RATES.

SO, UH, IT'S WHAT I WOULD, WHAT I DESCRIBE AS KIND OF INCOME ON THOSE TYPES.

SO PERCENT OF 'EM ARE AT MARKET RATE, 50% OF 'EM ARE AT 80% AMI.

UM, YOU CAN GO TO THE NEXT SLIDE AND WE CAN TALK ABOUT THE PROJECT AS A WHOLE.

UM, SO IF, IF ANYBODY'S DRIVEN BY THIS SITE OR SEEN THE PHOTOS THAT WE'VE SHARED RECENTLY, WE'LL SEE THAT, UH, WE'VE GOT FOUNDATIONS POURED AND UTILITIES INSTALLED AND SO THAT'S USUALLY A PRETTY GOOD SIGN THAT, THAT WE'RE ABOUT TO START GOING VERTICAL.

SO WE'RE AS, AS IT STANDS RIGHT NOW, AND YOU CAN SEE ON THE PHOTO HERE, AND THIS ONE'S A LITTLE, LITTLE BIT OLD, BUT THOSE PADS ARE, ARE POURED AND IN PLACE AND ARE BEING SET RIGHT NOW.

UM, BUT AS YOU CAN SEE IN THE PHOTO THERE, UH, WE'RE IN THE PROCESS OF WRAPPING UP WHAT I DESCRIBED AS HORIZONTAL WORK SITE WORK.

UM, AND VERY SHORTLY IT'LL BE TRANSITIONING INTO VERTICAL CONSTRUCTION.

SO THAT'S WHEN YOU SEE, YOU SEE WALLS AND FRAMING AND EVERYTHING START FLYING UP AND THAT'S WHEN FOLKS START GETTING EXCITED IS, YOU KNOW, THINGS ARE, THINGS ARE HAPPENING HERE.

UM, LET'S GO TO THE NEXT SLIDE, IF YOU DON'T MIND.

JUST ANOTHER SHOT HERE.

IT KINDA KICKS A BETTER ANGLE OF, OF THE AWKWARD LAYOUT OR THE AWKWARD BOUNDARY I SHOULD SAY AT THIS SITE.

SO A LITTLE BIT CHALLENGING TO, TO LAYOUT AND DESIGN AGAINST, BUT WE, WE MADE IT HAPPEN.

UM, THAT MAIN ENTRANCE IN THE ROADWAY THAT YOU SEE THERE, THAT TEES INTO THE 35 F ROAD THAT'S OAK CREEK WAY, UH, WHICH LEADS BACK INTO A SUBDIVISION TO THE IMMEDIATE WEST THERE.

BUT MAIN ENTRANCES ARE, ARE ALONG CREEK.

AND I I WOULD JUST SAY THAT THIS IS ON THE NORTHWEST SIDE OF 35, SO SORT OF ACROSS, IF THO IF Y'ALL KNOW 30 WEST SORT OF ACROSS FROM THE WALMART DISTRIBUTION SORT, IF THAT HELPS.

YEAH, SO SORT OF KIND OF JUST RIGHT THERE IN IN PRETTY GOOD STONES THROWAWAY.

WE CAN GO TO THE NEXT SLIDE.

THERE WE GO.

UH, SO HERE'S JUST KIND OF SOME CLOSE UP OF SOME OF THE SITE WORK WITH UTILITY INSTALLS THAT YOU CAN SEE GOING ON HERE.

THESE PICTURES ARE KIND OF BORING CAUSE YOU KNOW, EVERYBODY WANTS TO SEE THINGS GOING VERTICAL, WHICH THEY'RE ABOUT TO DO.

SO, UM, I INCLUDED THESE, THESE ARE IN THE REPORTS THAT DIANE MENTIONED.

A LOT OF THE PHOTOS THAT YOU SEE ON THE PRESENTATIONS OR, OR THE THINGS THAT ARE INCLUDED, UH, IN THOSE DAILY REPORTS AS WELL AS THE AERIALS.

YOU CAN GO NEXT SLIDE.

UM, SO, AND THEN SIMILAR TO THE PEON GROWTH PRESENTATION, I, I INCLUDED THIS JUST SO YOU GUYS CAN SEE WHAT WE'RE, WHAT THE VISION IS FOR THE, FOR THE FINAL PRODUCTS LOOK LIKE.

SO, UM, THEY'RE INTENDED TO BE FOUR STORY LITTLE SLIGHTLY MORE CONTEMPORARY LOOK ON THIS ONE.

UM, BUT WE CLOSED THIS AND STARTING CONSTRUCTION BACK IN MAY OF 2022, SO ALMOST EXACTLY A YEAR AGO.

UM, SO WE, WE'VE BEEN UNDERWAY FOR ABOUT A YEAR NOW AND, AND JUST DRIVING BEHIND IT PROBABLY SEEMS LIKE THAT, YOU KNOW, WE'RE RUNNING A LITTLE BIT BEHIND AND UM, YOU KNOW, THE REALITY IS IS THAT ONCE, ONCE WE START GOING VERTICAL, THAT'S ONE THING FOR REALLY STARTING ON .

SO ONCE VERTICAL CONSTRUCTION BEGINS, UM, YOU KNOW, IT, IT WON'T BE TOO LONG HERE, PROBABLY TOWARDS THE END OF THE YEAR WHEN UH, WE'LL START WELCOMING PER RESIDENTS INTO THOSE BUILDINGS.

BUT AS OF RIGHT NOW, UH, WE ORIGINALLY PROJECTED THAT WE BE A HUNDRED PERCENT COMPLETE BY SUMMER OF 24, UH, WHICH WE'RE STILL ON TRACK TO DO SO.

UM, THE CRITICAL PATH OVERALL, WE'RE, WE'RE STILL IN REALLY GOOD SHAPE THERE AND STILL MOVING FORWARD ON SCHEDULE AS A PLAN, WHICH IS GREAT.

[00:35:01]

UH, BUT I'M CERTAINLY MORE THAN HAPPY TO ANSWER ANY QUESTIONS THAT FOLKS MAY HAVE ABOUT OH THREE OR ANYTHING ELSE.

I WANNA ADD A LITTLE BIT TO THIS.

I ASKED THIS QUESTION FOR SOME OF Y'ALL THAT MIGHT HAVE SEEN THE SAN ANTONIO EXPRESS WHERE THEY DID THAT HUGE ARTICLE ABOUT MAYFAIR COMING TO NEW BRAUNFELS AND MAYFAIR IS SORT OF, KIND OF AROUND BUCKY'S BUT OUR PROPERTY, CUZ I CHECKED WITH JAKE TO SAID, ARE WE JUST NORTH OF MAYFAIR? SO IT'S A FABULOUS LOCATION WHEN YOU LOOK AT LONG TERM HOW MAYFAIR IS GONNA BE BUILT OUT AND WHAT THE VISION IS FOR THAT PROPERTY.

AND WE ARE JUST RIGHT OVER THE ROAD FROM MAYFAIR, THE BEST I CAN LOOK AT ALL THE MAPS.

IS THAT CORRECT, JAKE? YEAH, MY UNDERSTANDING IS MAYFAIR DEVELOPMENT IS, IS ALMOST EXACTLY ACROSS, UH, 35 FROM US.

WE'RE, THEY'RE JUST ON THE EAST SIDE OF 35.

IT'S ON BOTH SIDES.

YEAH, IT'S ON BOTH SIDES.

EAST AND WEST AND THE WEST RIGHT THERE.

I WASN'T AWARE THAT IT WAS ON THE WEST SIDE.

WE'RE RIGHT THERE WITH IT BE UP HERE.

NO, IT'S ON BOTH SIDES BUT IT'S ON BOTH SIDES.

BUT YEAH, AND, AND TO KINDA ADD ON THE BENEFIT OF THIS, I MEAN OTHER THAN ALL THE HATE EMAILS I GET ABOUT CAUSING A MORATORIUM FOR NEW BROTHELS AND NO MORE HAMMERS TO BE HIT, SERIOUSLY, I GET THAT, UM, CONTINENTAL JUST OPENED THEIR FACILITY ON THE OTHER SIDE OF THE HIGHWAY, UM, IN ADDITION TO THEIR SEGUI, THEY OPENED ONE HERE IN NEW BROTHELS AND THEY'RE AT AT A HUNDRED AND SOMETHING EMPLOYEES AND THEY'RE GONNA GO TO 500 AND MAYBE EVEN MORE.

AND THEN THAT'S WHILE THE MAYFAIR IS BEING DEVELOPED.

THIS WOULD BE A GREAT SUPPLEMENT FOR THOSE WORKERS THAT, I MEAN, MOST OF 'EM RIGHT NOW ARE COMING IN FOR SOME SINE I THINK.

BUT UH, THE NEW WORKERS THAT ARE COMING IN, THIS IS GONNA BE IDEAL.

AND AGAIN, UM, WE WE WE'RE GETTING A LOT OF PUSHBACK ON ANY TYPE OF APARTMENT COMPLEXES, BUT THIS IS SO NEEDED AND IT'S, WE'RE TAKING THE BEATING I'M GETTING.

SO THANK YOU FOR ALL YOUR HARD WORK AND THE, AND THE, THIS TEAM AS WELL APPRECIATE THE KIND WORDS AND I'M, I'M SORRY FOR THE, THE VERBAL BEATING .

SO JAKE, CAN WE, IS THE SUPPLY CHAIN PROBLEM RESOLVED NOW? YES.

I MEAN, TO BE HONEST IT IS NEVER REALLY RESOLVED, BUT YES, I MEAN IT, I THINK WHEN I LAST VISITED WITH YOU GUYS, YOU KNOW, AS YOU'RE WE ALL, THERE'S ALWAYS ISSUES AND THAT'S JUST THE NATURE OF CONSTRUCTION.

THE GOOD NEWS IS, IS THAT, UM, THE LUMBER IN PARTICULAR, IF YOU'LL REMEMBER WHEN WE ORIGINALLY CLOSED THE PROJECT, WE STARTING, THAT WAS WHEN THE BIG LUMBER SPIKE WAS HAPPENING AND THERE WAS A BUNCH OF PANIC IN CONSTRUCTION MARKET IS, I MEAN THE LUMBER INDEX WAS JUST, I LITERALLY HAD AN ALL TIME HIGH.

FORTUNATELY WE HAD SOME REALLY GOOD CONTACTS, UM, WITH OUR LUMBER SUPPLIERS AND DISTRIBUTORS AND THE PRICES THAT THEY HAD ORIGINALLY QUOTED US BEFORE, IT WAS LIKE, YOU KNOW, THEY WERE, THEY HONORED AND WE WERE ABLE TO FIND THAT OUT AHEAD OF TIME.

I'LL TELL YOU RIGHT NOW, IT'S PROBABLY ONE OF THE BRIGHTEST THINGS THAT WE COULD DID.

UH, CAUSE WE'D BE A REALLY BAD PRODUCT.

WE HADN'T DONE THAT.

BUT, YOU KNOW, THROUGHOUT, I MEAN THERE'S, THERE'S ALWAYS, YOU KNOW, SPIKES AND THINGS OR SHORTAGES AND THINGS IN THAT FUTURE.

BUT FROM A BOOK PERSPECTIVE, I MEAN WE'RE STILL IN GOOD SHAPE ON THAT FRONT.

SO, UM, THE SHORT ANSWER IS THERE'S ALWAYS ISSUES, BUT THEY'RE NOT CATASTROPHIC AND, AND NOT DETRIMENTAL AT THIS.

YOU DON'T USE COMPUTER CHIPS, RIGHT? SO YOU'RE NO.

YES.

ANY OTHER QUESTIONS ABOUT OAK CREEK? SOUND LIKE YOU MAY NEED TO DO ANOTHER PROJECT UP THERE, .

I DON'T KNOW.

I DON'T KNOW IF BLAKEY CAN TAKE IT.

I, I DON'T, I DUNNO IF I WANNA PUT HIM THROUGH BLAKE.

HE'S GOING ON VACATION.

.

OKAY.

SO THE NEXT ITEM

[11. Consider and act upon the Alamo Area Housing Finance Corporation (AAHFC) approving a Resolution authorizing the Oaks of Bandera/Trails at River Road Apartments transaction, including authorizing the issuance of bonds for the projects, which are located at 451 Old San Antonio Highway in Bandera, Texas and 711 River Road in Boerne; and other matters in connection therewith.]

AND I THINK WE START WITH, UH, THEIR ASSOCIATE WELCOME.

HI.

GOOD MORNING EVERYONE.

UM, SO I KNEW JIM'S ON THE LINE AND I DON'T KNOW IF HE WANTED TO START OFF AND THEN I'LL KIND OF TAKE OVER FROM THERE.

SHOW Y'ALL DECIDE.

GOOD MORNING Y'ALL.

I'M JIM PLUMER, UM, AND I APOLOGIZE FOR NOT BEING THERE TODAY.

UM, I WANT TO INTRODUCE SUMMER GREATHOUSE.

THERE'S MY PARTNER, UH, SUMMER AND I DO ALL KINDS OF AFFORDABLE HOUSING TRANSACTIONS AND WE ONLY REPRESENT GOVERNMENT ENTITIES AND WE HAVE BEEN YOUR COUNCIL FOR MANY, MANY YEARS, UH, IN TRYING TO HELP PUT TOGETHER THESE PROJECTS, UM, AND HELP THE COMMUNITIES BRING ABOUT NEW AFFORDABLE HOUSING OR IN THIS PARTICULAR CASE, BRINGING ABOUT THE REHABILITATION.

UH, AND WE IN END OF

[00:40:01]

AND SINCE I'M NOT THERE, I'M GONNA TURN THIS OVER TO SUMMER AND SHE WILL WALK YOU THROUGH THIS.

OKAY, GOOD MORNING EVERYONE.

UM, MS. JIM MENTIONED SUMMER GREAT HOUSE.

I'M A PARTNER AT BRACE HALL.

I'VE WORKED WITH JIM ON, WE'VE WORKED TOGETHER ON ALL THE DEALS FOR ABOUT SO FAR THIS MORNING, UM, THE LDG DEALS.

SO I THINK BEFORE I START ON THIS PARTICULAR PROJECT, I WANNA BACK UP JUST FOR THE BENEFIT OF SOME OF THE NEW FOLKS AND THE BOARD AND KIND OF, UM, DISCUSS THE LOW INCOME HOUSING TAX CREDIT PROGRAM.

AND I'LL TRY TO KEEP IT VERY HIGH LEVEL AND BRIEF.

UM, SO WE'RE NOT, WE'RE NOT HERE ALL DAY TALKING ABOUT HOUSING POLICY, UM, BUT I JUST WANTED TO KIND OF HELP YOU ALL UNDERSTAND WHY WE'RE HERE AND, AND WHY YOU'VE BEEN ASKED TO PARTICIPATE IN THIS PROJECT IN THE MANNER WHICH, WHAT YOU'RE PARTICIPATING.

SO WHAT WE'VE BEEN ASKED TO DO HERE IS TO ISSUE TAX EXEMPT PRIVATE ACTIVITY BONDS.

AND THE REASON YOU'RE, YOU'RE BEING ASKED TO DO THAT IS BECAUSE THIS IS A LONG INCOME HOUSING TAX CREDIT PROJECT.

THAT PROGRAM IS A FEDERALLY OPERATED PROGRAM PROGRAM.

SO WHAT HAPPENS, THE FEDERAL GOVERNMENT AWARDS TAX CREDIT CREDITS, PROJECTS, AND IN EXCHANGE FOR THOSE TAX CREDITS, THE PROJECTS AGREE TO PROVIDE AFFORDABLE HOUSING FOR A GIVEN PERIOD OF TIME.

AND ONE OF THE REQUIREMENTS FOR THAT IS AT 50% OF THE COST OF THE PROJECT MUST BE FINANCED THROUGH THE PRIVATE ACTIVITY TAX EXEMPT BONDS.

THESE BONDS ARE NOT GENERAL OBLIGATIONS OF THE HOUSING FINANCE CORPORATION.

THEY ARE NOT GENERAL OBLIGATIONS OF ANY OF THE CONSTITUENT GOVERNMENTS.

THESE ARE PRIVATE ACTIVITY BONDS, WHICH WHICH MEANS THAT THEY ARE ISSUED BY THE ISSUER, THE HOUSING FINDING FINANCE CORPORATION, AND THEN THEY ARE LINKED TO THE BORROWER, WHICH IS THE OWNER OF THE PROJECT.

THEY ARE SECURED BY THE PROJECT.

SO IF THERE IS ANY TYPE OF DEFAULT DEFAULT THE BANKS OR THE BOND BONDHOLDERS RECOURSE WOULD BE AGAINST THAT PARTICULAR PROJECT.

SO THERE IS NO GENERAL, GENERAL VIABILITY OF THE HOUSING FINANCE CORPORATION AND PARTICIPATING IN THESE PROJECT PROJECTS IN THE MANNER THAT THAT WE'RE TALKING ABOUT DOING, WHICH IS JUST AS THE ISSUER, THIS IS UNLIKE THAT DEALS IN WHICH THE HOUSING FINANCE CORPORATION CORPORATION IS PARTICIPATING AS AN OWNER OR AS A PARTNER IN THE DEAL.

THIS INSTANCE, YOU ARE NOT PARTICIPATING IN THE PARTNERSHIP, YOU'RE JUST ISSUING THE BOND.

IN ORDER TO FACILITATE THE AWARD OF THE TAX CREDITS FOR THIS PROJECT TO INCENTIVIZE THE AFFORDABLE HOUSING REDEVELOPMENT, UM, IN CONNECTION WITH THAT, YOU'LL RECEIVE A 1% FEE THAT IS 1% OF THE BONDS THAT ARE ISSUED IN THIS CASE.

UM, YOU'VE BEEN ASKED TO ISSUE UP TO A MAXIMUM, UH, 25 MILLION.

SO THAT WOULD BE A FEE OF UP TO $250,000.

UM, AND UM, I THINK THAT'S ALL THAT I HAVE TO TALK ABOUT NOW.

I'LL TALK ABOUT THE, THE, OH, DO YOU HAVE ANY QUESTIONS BEFORE I GO ON? ANYBODY HAVE ANY QUESTIONS? THE MOST IMPORTANT TAKEAWAY I THINK, CUZ I FIRST CAME ON AND I SAID, WELL WAIT A MINUTE, WHAT'S THE LIVELIHOOD OF YOUR MIKE COUNTY AND MIKE JUMPMAN? THERE IS NO RECOURSE BACK TO FEDERAL GOVERNMENTS.

SO THIS ONE OF THE FEW TIMES WHEN WE GET TO WIN, THIS IS A NEW RIGHT.

AND THERE THERE'S A, THERE'S A LIMITED AMOUNT OF PRIVATE ACTIVITY, THE BONDS THAT CAN BE ISSUED, ISSUED EVERY YEAR IN EACH STATE.

SO A VERY COMPETITIVE PROCESS AND BECAUSE IT IS KIND OF A, A VERY SPECIAL TYPE OF BOND THAT ISSUE BE ISSUED WHERE THERE IS, YOU DON'T HAVE THIS GOVERNMENTAL LIABILITY.

THAT'S ONE OF THE REASONS WHY IT'S NOT BOND.

IF YOU'RE ISSUING, WILL THEY GO AGAINST THE CAP THAT THE COUNTY'S AT? NO, NO.

THIS IS AN ENTIRE, THE COUNTIES ARE NOT, YOU ARE NOT THE ISSUER, YOU ARE NOT INVOLVED IN THIS.

IT IS WAIT, BUT WE'RE, THE HOUSING FINANCE COR CORPORATION IS A SEPARATE ENTITY, SEPARATE APART FROM ACOG.

SO A SEPARATE ENTITY APART FROM ALL OF YOUR CONSTITU CITIES AND THE COUNTIES THAT, UM, THE SPONSOR OF THE HOUSING FINANCE CORPORATE CORPORATION, THIS GASBY PUT SEVEN RULE GASBY 210 OR SOMETHING.