Dec 04, 2017 City Council on 2017-12-04 11:30 AM
December 04, 2017 City Council
Full Transcript
It is 1137 a.m. and I will go ahead and open up the City
Council portion of
this. We do have a quorum and want to invite Dr. Stream to
open the Denton
Housing Authority Board meeting. I hereby open the Housing
Authority of the City of
Denton Board of Commissioners meeting and a special call
meeting at the City
Hall Conference Room 215 East McKinney in Denton. It is
December 4 at 11 a.m.
and we are convening in a joint meeting with the Denton
City Council and we
thank you so much for the invitation. Sure thank you.
Excuse me. Well we don't
really have a presentation from staff. Basically I asked
for this meeting just
as some opening remarks and then I want to give Dr. Stream
an opportunity to
have some opening comments to try to get everybody in the
room to talk about some
of the things we've been discussing over the last I guess
it's last year
regarding affordable housing projects here in town that
seek tax credit
funding through the state either 4% or 9% tax credit
program. We've talked about
you know what are the interests for the various
organizations for the City
Council and for the Denton Housing Authority and also as
far as
applications and what information the City Council would be
interested in
obtaining as these projects come before us in connection
with partnership with
the DHA. So look forward to sort of vetting some of that
and discussing that
and really hope that this is a good candid conversation
about the
respective interests of both the boards but I will tell you
that we both have
one thing in common and that is we certainly want to see
that we have
quality affordable housing development in this city and how
we go about doing
that just depends on our own separate interests of our
organizations and where
those overlap and the common ground that we can find in
that so I look forward to
the discussion and and certainly want it to be one that
people feel comfortable
with sharing their thoughts and their ideas because unless
we do that I think
we'll be in the same place that we have been over the last
year. So welcome and
thank you so much for taking your time out to meet with us
here this morning.
Well Mr. Mayor and members of the Denton City Council thank
you so much for your
invitation to this joint meeting. Over the last several
months we have sent you
some financial information, some minutes of our meeting and
some other things
you've requested that we're hoping will be helpful as we
begin our discussion
here. Let me say that all of our commissioners are present
today. We have
included in the packet for you their names and two or three
sentences about
each of them. In addition to our commissioners we do have
some folks
Sherry McDade who is the executive director of the Denton
Housing
Authority and also we have Ramon Guajardo and Ramon I'm
sorry about
bollocksing on your last name but he he is help to us in in
our consulting about
land and development and so forth and then we have Maddie
Jones who is our
legal counsel represented here and we have them here with
the hopes that we
will be able to answer well some of the questions you have
that the board
members may not be exactly clear on. Now the housing
authority was founded by a
state charter so we weren't we're not an agency of the city
of Denton but our
state charter does require a couple of things I want to
make sure that council
knows about it requires that you appoint us as members of
this commission and it
also requires that we come to the city at the last stages
of any of our planning
developments after we have met with your city staff, pass
through planning and
zoning. It requires that we come to you for a final
resolution of approval for
any tax exempt construction that we wish to make in Denton.
The last time we were
here we came with a development issue that was split in two
one part was
approved and the other part not so because of that we do
not have a
development currently underway that fits the category that
I described. We have
had it several in the past we own several properties but we
currently do
not have one and I wanted to make sure the council is clear
on that. We we have
not had any proposals to bring any to you and so currently
as we sit here
discussing it together we have no burning fire thing on the
front burner
that needs to be handled. We would like it to be a general
conversation about
policies and how we might proceed and be most helpful. So
thank you to all of you
very much for using this time with us we appreciate it.
Sure thank you I appreciate
that. Just to sort of give a synopsis and this is just my
perspective so if
anybody on council sees it differently or anybody on the
board certainly feel
free to chime in. Just some historical context oh gosh I
lose track of time
probably about a year or so ago it's about the time the ver
anda I believe was
either had been approved or was in the process of being
approved. There was a
discussion about when these type of developments come into
the city
excuse me would the City Council consider a resolution or a
policy that
would ask those developers to give the housing authority
the first right
to look at that project to see if they wanted to
partnership with that project.
Part of the reason being that when a developer comes before
the city and just
seeks a resolution of support and they develop the project
on their own of
course all the development fees and things such as that in
there to their
benefit and that it was discovered through the consultation
with other
cities and municipalities and consultants that developers
are more
than willing to share those development fees with any
particular partner in this
case IE the Denton Housing Authority which would provide
some additional
revenue and would have that revenue be placed into the
community instead of
maybe going somewhere else wherever those developer fees
goes to to these
organizations and so in the midst of that discussion City
Council was just
you know part of the discussion was okay you know the
properties would be tax
exempt which means you know that revenue from those
projects would come
would not come to the city but in effect some of those it's
not a one-to-one
transfer but the developer fees would sort of act because
the developers if
they're not having to pay property taxes let's face it
there that's a major
expense that they don't have and so in the midst of that
conversation City
Council just has been just trying to formulate that policy
on how do we do
that you know what are the consequences of that what are
the implications of
that how can we maximize that revenue from the developer
fees that we are
foregoing as a City Council to apply those property taxes
to the general
expenses of the city which has to do with a variety of
interests and in our
community and how do we craft a policy that will help us
maximize that and so
we developed an application I believe that's what is an
application for
future projects such as this that would help us in that
decision-making process
as far as information that we would like to have and I
believe we sent that to
the Housing Authority either to the executive director to
you Sherry or and
or to the board for some input and so that's where we are
you know with the
information that we got back so I think in the course of
the conversation for
me personally that's still is my thrust of my inquiry is as
we do this as we
move forward on this how you know what's what are those
fees and then what are
those fees going to be used for as far as in promoting new
programs and things
such as that so I do have some questions and observations
about some of the
information but I will hold those because I'm not going to
monopolize the
floor but that's how I see it from my perspective so
anybody that wants to add
to that or take away or tell me that I'm crazy feel free to
do that but I just
wanted to give those opening comments and then open it up
to the floor to see
if if you know the perspective from either council members
or boards or the
executive director yes Sherry thank you all very much for
working with us and
recommending this joint meeting I know we've been talking
about it probably for
about a year and it's something that the board was
interested in doing also I
think that we kind of got in a scurry when all the tax
credit applications
were coming through because of the time of year that it was
and so we didn't
get a chance to sit down and have this meeting so I
appreciate you putting this
together and your staff are working with us and getting all
the paper that you
needed one thing that on my side in my perspective is the
business of the
housing authority and our role in what we do and part of
what we do is try to
develop affordable housing and so my the policies which is
the last thing that we
discussed and talked about when you start writing those
type of policies and
then to me in my perspective it becomes another layer and
so that's where I was
coming from in that I'm hoping you're not creating policy
to deter or to stop
affordable housing from coming to the city but that you
really truly want a
policy that makes it fair and even and open for everyone I
too would like to
know what is the city's policy for affordable housing for
this city is the
council in the city supportive of affordable housing or it
's is it this or
is it that so I guess my perspective today and coming here
today is hoping to
learn what it is that you do want as a city and are you
open to affordable
housing being built okay yes
there's gonna be some people that are watching this live
streaming or a TV or
maybe we'll tune in later and it might be helpful because
they may not look at
the backup that we have for you or someone on the board to
explain what the
mission is and then I have a couple of follow-up questions
if you don't mind
no sure we do have an official mission I'm sorry I don't
have in front of me to
read to you but one of them is to provide affordable
housing and programs
and services for low-income families here in the city we we
want to and we're
trying to provide some self-sufficiency for those families
that we serve but our
main is to provide for those families and we use the term
affordable housing
affordable is there a definition for that I mean how do we
define affordable
is it are we tying it to the market rate and it's the
housing that y'all are
providing is somewhat provided at a reduced rate to
whatever the market rate
is how does that how do we define affordable housing is
more along the
lines that the rents would be affordable for families that
make less than the
area of median income in the community and so the state
provides funding to
incentivize us to build those type of units so the state
sets the rents the
state decides what the rents will be based on the income of
the families that
would live there so that's what makes them affordable
income is for Denton County or the city of Denton and they
look at maybe 60% of
that or 50% of that or something like that and then they
figure some some
percentage of that that your your housing cost ought to be
no more than 25
or 33 percent of your income is that how they it's a
formula are there any other
groups in the city of Denton that are performing the
service that y'all perform
thanks me okay all right question as far as because Dalton
you asked about it so
the didn't y'all help me didn't affordable housing
corporation is that
the name yes okay they do provide affordable housing units
for either
rental or resale now they don't administer the HUD voucher
program which
is my understanding is is the lion's share I believe of
what the Denton
Housing Authority does outside of you have three maybe four
now you've got
pecan place yes you have heritage oaks and then the
Renaissance and then the
veranda is coming online in stages but that is is that
going to be managed by
the Denton Housing Authority is that just an on-site
manager that is on site
management company chosen by the developer so it'll just be
the cash flow
sharing and the developer fee sharing is I mean the Denton
Housing Authority
doesn't have a day-to-day management role in that
particular unit do you have
a day-to-day management role in those other three like
Renaissance heritage
oaks and pecan place in pecan place and heritage oaks and
Renaissance course is
a third party it's a tax credit also and there's a third
party management
company for that for which one I'm sorry Renaissance sports
it's been a long-term relationship with Lincoln property
okay all right well you
asked a question and that question is what is the city of
Denton's position on
affordable housing and to be honest I'm surprised that that
's even a question we
have certainly approved many projects in the past the ver
anda was the most recent
we approved one that I think we're looking at the zoning
requirement
palladium so I think that didn't this I can't speak for the
rest of the council
but I'll speak for myself we're certainly committed I'm
certainly
committed to affordable housing I'm also committed to
ensuring that if that's
requiring city funds that those funds are maximized to meet
those needs
whatever those needs are so I'm just going to sort of dive
right in if you
don't mind because we could talk about the application
process of the policy
but the letter share that you sent at our last meeting you
know with that same
question posed as you know are we are we committed to
affordable housing I really
didn't quite know how to respond to that because I thought
what we're trying to
do is create a policy and an application process whereby we
can judge based upon
the information given us from to us from a developer and
whether they're
standalone by themselves or whether they're in partnership
with someone how
do we make a determination on what if we're going to
support that project
based upon that information and I think your letter had
sort of alluded to that
it might be might be redundant to the state application I
don't feel that that
is going to discourage people from applying because let's
face it those
programs are very lucrative there are many more applicants
for those programs
during the year then what there are places to fill or spots
to to approve
absolutely so when I looked through the information part of
what I'm looking for
is okay we say we're going to support this project in
partnership with the
Denton Housing Authority and it's going to increase the
Denton Housing
Authority's revenue by X dollars whatever though it's
different for every
development and it will mean that since it's off the tax
rolls that that income
will not be coming to the city which is okay but for me I
want to make sure I
have an understanding and a clear understanding of how is
that going to be
working towards that common goal that both of these bodies
have of providing
more affordable housing so and I can't find it I hope I can
find it in the
backup but there's a there was a two-page thing that that
was a document
that was given to us quite a while back is called Denton
Housing Authority
fiscal year budget 2016-17 with the income all your income
it's just a little
single page document and I'll just sort of and then it
talks about expenses and
net operating income and then on the backside it talks
about it splits out
now the revenue from the developer fees for Veranda
developer fee for you say it
Ohala is that how you say oh oh developer fee bond issues
and annual
income so I just want to deal with those three because the
brand has already been
done that's we approved that and they're moving people in
right now which is good
and it's a very well done project I mean I haven't had a
chance to tour it I
think did you get a chance to true yeah
yeah very well class a project is it not yeah fantastic
well and I think if I may
sure go ahead I just want to make sure I get back to these
questions go ahead no
no I think the thing that jumped out of me that great
project just on its face
and then it goes beyond what you see in that the one of the
nuggets the the
fixtures are all lifetime guarantee so you know going
forward you maintain the
quality of the residences and don't add cost and so there's
a lot of there's a
lot of thought and detail sure but into it that became
apparent as we were going
through the tour so I think there's a lot of neat little
nuggets in there well
and I know as a little bit familiar with as the
conversations were going with the
brand and the Housing Authority that it was your board the
board that really I
think asked for many of those enhancements larger floor
plan I think it
was just a different make I mean you really they were
pattering it off of
someone a development down in San Antonio and you asked
that you know
certain things be done to better fit it with this community
and I think I think
that's been a resounding success so I really do appreciate
appreciate that
because it does show I mean that's a it's a prime example
of when people hear
about affordable housing projects unfortunately there's a
stereotype that
you know they're they're not going to be either well
maintained or it's going to
somehow hurt the neighborhood and I think there's you look
at that project
and that's far from the truth I mean that's that's
definitely far from the
truth but on the on that little budget sheet it was showing
that the developer
fees for the O'Halla project developer fee of five hundred
sixty six thousand
bond issuance four sixty four annual income forty six and I
don't I'm not
getting into the weeds but this is to help you understand
how I'm approaching
the issue or the conversation is about one point two
million dollars just from
that project is what if it had gone through that's what you
would have
realized as income at least a budgeted income and then the
community
contributions that were scheduled to be done with that I
mean a hundred sixty
two thousand and twenty seven thousand was veranda income
but I'm that's
already there so I'm just dealing with the was about two
hundred eighteen
thousand sixty three thousand United Way pilot housing
assistant program 150
thousand giving hope five thousand and then a reserve for
the four hundred
fifty thousand dollars for the purchase of Renaissance
courts which I think is
coming up in nineteen two thousand nineteen or twenties
when you get the
chance to exercise that right of first refusal is that
right okay and so that
that added up to about six hundred and sixty thousand
dollars yeah six hundred
seventy thousand dollars now I'm not sure there's a net
income figure here of
one thousand nine hundred sixty one dollars I really don't
know what that is
but so that's a difference of four hundred and seven
thousand dollars from
the total developer fees budgeted for Ohala and then what
has been scheduled
what has been presented as well this is what we'll do with
some of those fees
now for the budget of 1617 because that didn't happen does
that mean that y'all
had a shortfall in the budget for 2016 and 17 and the only
reason I say that is
because my goal is if we're going to be providing working
in partnership with
the Denton Housing Authority to bring these developers on
board to build
affordable units and we're foregoing tax revenue that will
not only help us with
funding community services and home grants and and
repairing people's homes
and providing additional kind of social services and just
making sure people are
safe with police protection and fire protection so we're
not going to be
realizing that but we are sort of saying but that money is
going to a worthy
cost and that is to specifically and directly impact
affordable housing here
in the community so my goal would be as much of that
additional revenue that is
coming in would be used for programs and things that right
now are not currently
being done in other words whatever that may be and so when
I look at some of the
budgets and when I look at what's been stated as what would
those monies be
used for it seems that there's a little bit of an imbalance
and that that's just
where I'm coming from that doesn't mean you have to agree
and that's why I want
to have a candid conversation I mean that's I'm not trying
to start anything
I'm just trying to express sort of my thoughts so when I
look at the 2016-17
budget that was provided if everything had gone as planned
it showed that
there was a net income of six hundred seventy thousand
dollars for the 16 17
budget but and that includes the ohala developer fees and
the and the like of
about a million dollars so when I'm back that million
dollars out and I'm just
going on the information I have so if there's some other
supplement or
something that's this isn't this is just going with the
numbers that I have so
when I'm back out that that did not occur it leaves about a
full hundred
seventy thousand dollar hole at least in the budget as it
was written that doesn't
mean that you had a full hundred seventy thousand dollar
hole so that's what my
thoughts are if we're and this year for veranda I believe
the budget is for a
seven hundred and forty three thousand plus a twenty seven
thousand dollar
payment apparently they're paying the other half of their
developer fee portion
portion of it yeah the seven hundred forty three thousand
and the set twenty seven thousand of the fee and so that
this current budget of 2017 and 18 shows a net income of
thirty six thousand five hundred
sixty two dollars including that seven hundred and seventy
thousand dollar
revenue from veranda and so if that wasn't there that's
about a seven hundred
thousand dollar hole quote unquote in the budget and I know
you budgeted for
things that and so I guess that do those partnerships since
you're not managing
the veranda since that's the one on the ground that's the
only one I know to go
by since you're not managing it what expenses are really
associated with the
housing authority in having that partnership at least in
this budget year
what are you are you having to add staff or specific to the
veranda veranda only
yes there we pay a management fee to a management company
to manage it and it
comes out of the operation of the veranda the housing
authority earns
developer fees and some cash flow from doing the project so
that's the income
that's what's reflected in there not operating income from
the veranda so
then maybe I'm so when I see those developer fees I'm not
know how how is
to categorize it to me then there's not really any offset
ting I mean the the
management fees come out of the operations out of the cash
flow the
rental payments and things such as that so these payments
of the developer fee
in the veranda bond issuer fee of seven hundred seventy
thousand that's simply
what has been negotiated between veranda and the housing
authority as the share
in other developer fees as I don't say it's gravy but it's
you're not having
any offsetting expenses to recognize that revenue it's not
like you're getting
paid a management fee but you also have to hire management
company and this is
just sort of money that's coming in that's unencumbered
with some type of
operational offset in order to acquire that is that is that
my understanding of
that okay but when you're comparing the ohala situation
which is as it at this
time a no-go with the veranda situation I mean it's like
comparing apples and
oranges really our revenue is driven by the fact that we
serve people in our
community and we bring in two years ago as an example we
were bringing in about
13 million dollars a year in federal funding right today
our budget is more
like 11 million right so you can see how we continually try
to adjust and
the fees we get off of that or administrative fees that
were paid for
by the government to administer that money and so it's it's
an ongoing it's
a it's a moving target for us continually because they say
you can now
serve X amount of people sure because the sequestration
that we had they
lowered that and lowered that and lowered that we've been
continually
trying to hit those goals that they have set for us in
serving people in our
community without having to remove people we've done it by
attrition
basically as people have either fallen out of the system
because they've
developed their income or that they don't qualify they've
died they've
moved on they moved out of the community we've not filled
those
positions so where we might have had a section 8 total of
people housed at
1800 at one time now we might be serving 1600 okay does
that help you any it does
so so is this revenue from at least now it doesn't mean in
the future but from
the Ohala potential project from the veranda it seems from
what you've just
said and from at least what I've read in the numbers that
were provided and
there may be some other things that I'm not seeing it seems
like that money is
needed to help fill in some maybe potential funding gaps of
currently with
the federal government in other words it's not money that
if you didn't have
it would you be whole or would you have a deficit would you
have a deficit in
your budget isn't this at this point in this date and time
we probably would see
some cuts and we're going to see cuts in our funding so we
do need additional
revenue stream and so that means that we would have to
operate that program
differently meaning I would probably have to have less
staff and we would be
cutting the budget that way so to speak okay the other part
of it is if we did
we're not going to get the developer fees that we thought
we were going to
get then we wouldn't do the programs that we're planning to
do we would not
provide funding to the community to provide services for
families in the
community we wouldn't do a security deposit program we
wouldn't do those
things so we would take that chunk out and not do those
programs yes go ahead
I'm sorry mayor pro tem something he said miss McDade so
when you say
something that she just said you mentioned the services for
the community
and that was one of the things that I wanted to talk about
today and one of the
main reasons that I brought up the policy aspect of this
and how we
approached that so I think Kristen English and I met and
somebody else met
as well I'm sorry I can't remember the other person that
met with us but we
talked about some services that are provided because that's
one of the
trade-offs is you know an exchange for what I view as an
exchange of an
exchange for taking these properties out of the tax rules D
HA and the
developers somehow step in for some type of community based
organization you know
role so they're picking up some of the needs of these
community members and so
what I had asked for was just kind of a list of what type
of services are
provided at at the different housing projects and you
mentioned cutting
services so I was hoping you could either if you could
clarify for me what
services there are at the housing projects and you know
what obligations
the housing authority has to provide those services just to
sidetrack a
little bit the goal in my mind for any policy document
would be to ensure that
residents get services that's that's kind of the meat part
of it to say we if we
have this project we want to be sure that people are
getting after-school
services or they're getting wraparound whatever they need
to get themselves on
their feet because the goal isn't to keep people in public
housing for you
know their entire life is to help them move to the next
stage so if I remember
correctly from our meeting Renaissance courts only had
after an after-school
program that was there and I wasn't sure if DHA was paying
for that or who was
paying for that and then there was a food pantry available
to people at
pecan place I do remember that as well and I think that it
was available to
heritage oaks also but that was the extent of the services
and if I'm
incorrect please jump in and correct me but I would
definitely like to see more
in terms of when we do this partnership and I do view it as
a partnership we're
gonna get a lot for the people who live there and it's
gonna be something more
than just affordable housing I think you have kind of mixed
up the two different
things I was answering and addressing the information Chris
was asking
regarding the veranda any programs or services that will be
at the tax credit
developments are paid for out of the operation of that
project is not out of
the developer fee that the housing authority earned what I
was speaking to
was that if the housing authority can earn those developer
fees we're able to
use those findings to provide different type of services
for instance we are
section 8 vassal families were having a hard time finding
units mainly because
they couldn't pay application fees and security deposit so
we were able to
find a little bit of funding to hope and partner with them
to help pay for some
of those things for our voucher families that's not at the
housing properties we
also are working on a tenant-based real assistance program
that's separate from
our housing voucher program that will work in the same way
we're partnering
with United Way right now the boards already approved two
hundred and fifty
thousand dollars to use for services and programs that have
nothing to do with
the tax credit development that we're doing or the actual
properties that
we're actually operating right now one of the things that
we had talked about
in the last two years really with you was having a really
good needs
assessment within our community and of course United Way
has recently published
that and put that out and one of the biggest things we saw
within that needs
assessment was in fact the need for housing which they
stress tremendously
and that work that we did to jointly help define some of
those things within
our community and of course as you know we have great
relationship with the
United Way they're in the process of building a new
building and we have been
a part of the land acquisition with them on some property
that we actually
already owned we need some more meeting space and they were
going to provide
that for us on a regular basis on a long-term situation so
it's been a great
relationship with the United Way as we looked at that needs
assessment at the
time when they first started it we had nearly 3,000 people
on our waiting list
that wanted services in some way shape or form in
affordable housing today I
think that list is now down to 8,000 now thousand okay
which is also one of the
reasons why some of the nonprofits or people that want to
build within our
community would like to come through the Housing Authority
is because we've got
that built-in list for them on how we can help fill those
projects up with new
people and their their process of getting to full occupancy
become
shortened which is a big a benefit so I guess just going
back to kind of the
that clarifies things thank you so what steps can the city
or DHA take to ensure
that when these housing projects come online they are
actually providing
things to the residents more than just a roof over their
heads we'd like to
negotiate that right into the contract I really think that
one of our
consultants can kind of give you some insight into what we
tried to do and
what other tools might be available to us so let me ask it
let me ask a real
quick let me ask something of the DHA board do you see a
role for the city and
ensuring that those different types of services are
provided say it again do you
see a role for the city and ensuring that those different
types of services
are provided at the housing level and I'm consultant the
housing authority I
believe the the actual legal agreement is between the
housing authority the
developer so that would have to be included in a contract
between the
housing authority and the developer for specific services
that would be expected
and required and it could be done even in the deed
restriction those service
will be provided and enforceable so has that been in prior
deeds yes with a
veranda there's a contract that requires the developer to
provide specific
services at that complex and again it's enforceable because
they stand to lose
the tax credit they receive from the state so what are some
of the types of
services that they're required to provide there's a whole
list of services
from after school to services for adults literacy and other
educational programs
okay so I'll go back again we can provide those lists and
again I think
that going into a new proposal I think it's our
responsibility to provide you
with the information of what is going to be provided what
are the requirements
with that you've been a party to that agreement but you're
knowledgeable of
what the housing authority is required the developer to
provide Sarah Mac let
me kind of introduce Ramon if I might Ramon is not only a
consultant for our
housing authorities and consulted for the Fort Worth
Housing Authority and
several other housing authority in this north north Texas
area but 27 years with
the city of Fort Worth the last part of that as assistant
city manager with them
so he really understands I think city issues one of the
reasons we brought him
on board in particular because of those city insight that
he has I believe we've
thoroughly investigated this we have contracts around it I
think you ask what
if we need the city to help us enforce that see the kids
get that and frankly
if you don't mind my saying so I think we've taken care of
it we have contracts
we have people assigned we we're working very hard and
diligently on this for all
our for all our units but we would welcome your input to
know what services
what other services you think might dovetail into our
operations each one
you know from other cities each one of these each one of
these builders brings
a different set of tools with them when what they have done
in the past and
they're comfortable with and so as we negotiate a
particular project we're
looking to to see if we can springboard off of some things
that they've done
past in the past that they've had you know good luck with
and trying to
develop support for their that particular constituency let
me address
that because I appreciate you bringing up the services
component and this is
this is where I stand this is where I'm getting stuck okay
this is where I'm
getting stuck because what I've heard you say is that those
services provided for
the residents are negotiated in the contract and come out
of operational
revenues they're paid for by from the operational revenues
of the development
in other words these so correct me if I'm wrong but
whatever services are at
veranda are paid for out of the cash flows received from
the rents and then
that's just part of the expense to get the that's correct
for the residents at
that site so that's really I mean if a developer came to
the city outside of a
partnership with the Denton Housing Authority I don't know
if we could we
could certainly encourage developers to provide those kind
of service for me
what I'm saying is that what seems to be different here
from a developer coming
before the city or developer coming before the city with
the partnership
with the Denton Housing Authority are these developer fees
revenues and then
the the positive the net cash flow sharing in other words
after all the
operational expenses are paid after all the social services
for that community
are paid all the debt service everything the housing
authority shares in that
cash flow revenue so when I store this sort of dovetails in
what you were
talking about Sarah so for me that additional money and let
's just call it
a million dollars that's not just so that I don't have to
keep going back and
trying to figure out the numbers so that's a million
dollars we're gonna use
we're gonna use 700,000 that's more closely to the brand so
that money is
coming in unrestricted unencumbered by organizational kind
of offsets expense
offsets so so the housing authority is getting that money
when I look at the
budgets and when I look at the the the 1617 budget where
what you were saying
share I think what you were alluding to is the services
that we're saying we're
going to do above and beyond what have been contracted for
by the developer and
these were the ones that it released listed on this this
page United Way
partnership 5% which was $63,250 I'm only given these as an
example
pilot housing assisted program 150,000 giving hope
partnership deposits that's
the one you were talking about I think of 500 $5,000 excuse
me for total
community contribution of 218,000 and 250 dollars for as
far as in your budget
analysis in 2016 17 but the ohala revenue alone if it had
gone as planned
was over a million and seventy five thousand dollars and so
then you have
reserved some so you got the 218,000 from the 1.7 1 million
75,000 so you take
the 218 off you're down to about 800,000 then you put 450,
000 in reserve fund
for that so I'm just trying to understand what I don't want
I'm just
gonna say it as clearly as I can I struggle with entering
into a policy
where maybe half at least half of that additional money
goes to potentially
fill a funding gap that's been created by the federal
government because what
I'm hoping is that most of that money goes to provide
additional services
that right now neither the city nor the Denton Housing
Authority are offering
because we don't have the resources so that's where I'm
getting stuck I'm
trying to make sense I'm sorry I'm a very detailed person I
know this was
supposed to be a general conversation but that's why with
the policy
application that we've submitted sort of for your review
that helps us because
in some of that we're asking how much money is going to be
required you know
how much money is going to be paid what are you identifying
as the money that's
going to be paid to the additional services that are going
to be provided
as per that sort of example and that helps us go okay helps
me go okay we're
saying we're not going to get five hundred thousand dollars
of tax revenue
that will benefit all kinds of services in the city we're
going to go ahead and
forgo that and enter into this partnership so the Denton
Housing
Authority can realize some additional revenue so that we
can have some
additional services specifically targeted to this kind of
these kind of
services that we're talking about that is the and if I if
somehow that's
confusing please ask me because I've been trying to
communicate that for six
months to eight months and I've met with several in this
room privately I met
with the board publicly once that's really the crux for me
it's it's pretty
simple because I have no problem let me just say that unequ
ivocally I have no
problem entering into a partnership with any organization
in the city of Denton
if it helps us maximize the amount of services that we can
derive from revenue
if we can create more services based upon the same amount
of revenue whether
it's city tax dollars or it's going to a nonprofit that's a
no-brainer but to
understand that decision it just requires information so
yes I believe
that you're talking about is not the Housing Authority
board that was some
information that I provided to city staff I think I had
about one or two
days to put some numbers together that's nothing that's
been approved by
oh no and that's fine I'm not example it was an example of
some things we can do
yes and so the bulk of that in the few days in time that we
had was that
portion a large portion of that in that year would be used
to for reserves for
the purchase of Renaissance yes yes and so that's yes what
it no I understand
yes let's see we got Dalton then mr. Geese and then Cheryl
did oh you didn't
raise your hand okay and then salty yeah yeah I just want
to give some people a
chance who hadn't spoken yet go ahead it seems to me that
the most it's an
important question that mayor pro tem asks what services
are provided and I
and I think that the most basic answer to that question is
you're providing
affordable housing and you're using the income that comes
off of that to provide
affordable housing that's that's the basic mission of your
organization and
and in your your mission statement says to transform DHS D
HA into a premier
housing authority through honest and effective leadership
by providing
quality affordable housing and promoting programs that
foster economic
independence so I think maybe down the road a way to
communicate to us is to
say give us some things like like not only the numbers we
have the number of
facilities that y'all are associated with and the number of
units but so how
many people are benefiting from affordable housing because
of that and
and through the I guess the section 8 housing things that y
'all help work with
so throughout the town how many individuals are are
receiving the
benefit of affordable housing that's your most basic
service that you're
providing and then and then to get a list of those other
programs that may be
available whether it's assistance with deposits to focus
for section 8 privately
owned in you know properties or or the programs at the
various services at the
various complexes that you have but I think one of the
things that I'm hearing
also is you're trying to develop a cash reserve so that
when your option comes
up to purchase Renaissance courts you can do that yes and
and so these funds
will help bring your your reserves up so that you can do
that in an affordable
way probably reduce the amount that you have to borrow and
pay interest on is
that right now if Renaissance courts once it meets or any
of these complexes
that that have been built through tax credits once they hit
their 30-year mark
they've met their obligation for their tax credits is that
right after that
particular point exactly 15 after that point are they oblig
ated to continue to
provide affordable housing or can they just take that all
up to market rate
pardon there's an extended lure that for 15 additional
years so okay so there's an
extended for a period they have to provide it but after
they're done they
don't have to provide that housing affordable housing
anymore it can be
market driven housing but if you guys take over the
ownership of it then it's
kind of guaranteed as an ongoing perpetual affordable
housing so it seems
to me that what we're talking about is is you guys are
looking for ways to get
the revenue necessary to maintain or increase your stock of
properties so
that you can continue to provide affordable housing and
just maintaining
enough the current inventory is not going to be sufficient
because of the
growing need for affordable housing okay so so I think if y
'all gave us those
reports on all the people that are you know all those
numbers it would be
helpful and and the programs and maybe there are some
additional programs that
that have been identified through the United Way or that
our council members can
identify that that may be possible for us to partner with
you on Dalton I'll
just say this this is where we are right now as a housing
authority we have not
been able to issue a voucher for just about over a year
because the funding is
not there if a voucher comes back to us and that a family
terminates from the
program we cannot reissue that voucher and so what we're
looking at is people
knocking on our door every day all day needing and asking
for assistance so our
our the board's vision and plan has been that if we can get
some additional
revenue that doesn't have any HUD attachment no federal
strings attached
to it then we can create a program on our own that could
help some of those
families that come to our door so that's I want to
recognize mr. Gacy has been
very patient
because it's it's it's not possible people because each
family comes in and
gets a voucher doesn't get one and so forth same thing is
true with these
Renaissance courts and Van Yacht that you have units and so
we've got so many
units needs one but what I wanted to come back more is that
we have a very
variable operation for example in 19 and 2014 we had an
income of about 700,000
2015 we had a loss of 800 and some thousand so where our
cash flow and
this is not cash flow necessarily because we're on a parole
basis but we do have a
fluctuation in there and like the development fee it doesn
't all come in
at once it comes in if they have the cash to pay for in a
lot of such ways so
we have to be extremely careful about looking at what kind
of situation are
we looking at how are we going to handle that in that
situation so it's very
difficult to have a progress like Vanguard and say we're
going to have this
kind of cash flow this year that we have had some we haven
't had it all yet and I
don't know whether we'll have it all for a while I think it
's going to be several
years before we'll get all that money in as a free cash
flow so we have to be
careful about the contract and what is there a lot of them
is based on whether
or not the cash is there now another example I'll just use
an example it's
not maybe critical here Renaissance Court several years ago
we had to advance
them a little over $200,000 to help them refinance so we
get better interest
rates so they'd be more profitable Renaissance Court over
the year hasn't
been extremely cash flow for they haven't paid that back
and it's been
out three or four years because they haven't had the cash
to do it and that
was part of the room so it's not and again our voucher
program is such that
they keep cutting the administrative cost and some of our
administrative cost
doesn't go down it stays right there and we're short of
money and that that has
to be come from other sources so we have a total operation
so I don't think we
look at just one thing is that well this is free money we
have to look at what
the total operation is about and that's my point because
really this whole
conversation started when the Housing Authority board asked
for us to work
together to craft a policy which I don't think anybody on
this council has
has had any necessary there hasn't been anybody that says
we don't want to do
that it's been more like what do we need what information
do we need in order to
do that and be true to our charge as council members with
tax dollars or
deferring tax dollars now I will say I'm gonna be truthful
when you say that
because these developers I mean like Renaissance Court you
know they
haven't paid or it hasn't paid like it was supposed to and
so you know my
thought has been okay you've got 15 years out to save up
money to purchase
Renaissance Court I would think that some of that would be
self-funded from
the contracts that you enter into with those developers
that okay we're gonna
enter into these contracts if we want to buy it in 15 years
we need to make sure
we put this back but if they don't perform then you got a
problem so in
essence in essence what we're what I'm only saying is if we
're going to forgo
property tax revenue so Dalton in address to your
affordable housing a
developer can come in here and build affordable housing
without the
partnership I mean they can do that and so we and they have
and we've approved
it and so we're continuing to promote affordable housing
the the reason for
the partnership has been how do we instead of letting the
developers pocket
a million and a half or two million dollars whatever what's
the total
developer feed that the housing authority is going to get
on veranda once
if I don't want to say if they pay it but once they pay it
what is it going to be
okay well put the in the budget 750,000 is a partial
payment so let's just say
it's a million or two million dollars plus some cash flow
so so the question
becomes do we want that money to sit in the pockets of the
developers and
investors who buy those tax credits or do you want to share
in that and bring
that money into the community in some form or fashion to
help us increase the
services that we're not already providing and that's to me
really the
question for me is if we're going to say we're going to
forego these city taxes
on these affordable housing projects that can come in and
provide affordable
housing without the partnership and we say no we think we
can do a better job
of that by partnering with the housing authority and
allowing them to have an
additional revenue stream of whatever million and a half or
two million
dollars over 15 years then it's just part of the
application part of the
reason for the application is then help us understand what
additional services
that you're going to be funding through the community such
as United Way or
grants etc or hope incorporated for deposits or interfaith
with plus one
utility assistance payments that we're not doing right now
it's basically saying
we're taking the money out of the developers pockets
because that's where
it is and we're bringing it back into the community and
putting it in charge
of the Denton Housing Authority to be fiduciary stewards of
that money to
maximize the services that we're providing to our residents
that we are
not doing right now that to me is that's the question for
me and that's then the
application process is what this council had decided was
the best way to do that
so that we can have the information to make that decision
so we're not trying
to be onerous with it all you have to do say hey we'd like
this and we'll be glad
to send it to you and we're I'm not protective of the
information about how
much you're given and you have somebody at our meetings
every single time and
she might be requested to request of us while she's down
there have you sent the
city this month's whatever we're we are trying to be open
as well and if we know
more about what you'd like we can do a better job and we
what I'm trying to
point out is we already have a liaison to help us
communicate some of that
should we choose to use her is there so I'll just ask this
question is there an
opposition from the Denton Housing Authority board to the
application
process that was submitted by city staff for your review
that when a project
comes forward that that the city could gather that
information in order to help
make a decision on the resolution that would be requested
to support the project
is there a problem with that application process one of the
things that we're
looking at and what you're looking at is tax exemption that
's that's to go through
some of these possible a 4% or 9% without a tax is not
going to be a
viable project now what that tax exemption over the long
run should
generate enough revenue to help us do some other things for
the city but it's
not going to be within the first few years because the cost
we we have to
provide for reserves for non-replacement reserve but for
maintenance and so forth
in these contracts and so that clears up for example when
heredity jokes bonds
finally paid off about five or six years ago I don't
remember the exact date but
we've got a income of money and call my because the
reserves has had we haven't
spent most that's something because heredity joke needs
some major overall
and when Renaissance course comes up we won't have enough
reserve to finance it
we're gonna have three finance this is I don't think it's
possible for us to
reserve enough we'll reserve will help sure but the thing
is here that we have
to look at so I I'm perfectly willing as an individual not
as the bond not
speaking for the board now that if we generate some excess
cash that we should
use it to help this community I have no problem with that
at all but sometimes
trying to define that say you're going to have two dollars
this year extra this
is not is doing difficult to do because of our fluctuations
and that's what
we're looking at is that it's not going if you put us in
there and say well you
have to furnish certain money in lieu of taxes when that
that wasn't the
question I mean the question was we submitted an
application that had
information if there's an objection to it what would you
guys want to see in
order to cure that objection because we're not trying to
tell you you're
we're not saying I'm not saying can't speak for anybody
else not saying this
is what you got to do with it it's simply what we're
talking about right now
is how do we get this policy or this relationship off-
center I mean it's sort
of stuck right now and it's been because we're trying to
craft a policy that we
can look at as these come forward instead of it being an ad
hoc decision
on a case-by-case basis how can we create a standard
streamlined process of
information gathering that will go okay here's the
information here's what is
before us here's what is projected to be the revenue
projected to be the
expenses and and where they're going understanding that it
fluctuates so if
we're not if we don't have some direction by the end of
this meeting
about the application the actual application that was sent
for your
review and how we can maybe revise that where if there's
some objections to it
or something but if you just don't want it all together
please feel free to say
that I mean I don't I don't have any objection to that I
mean I think
councilmember Hussman was trying to get in so go ahead yeah
no salty was you
sure okay getting my head around right just kind of I came
on planning and
zoning I was on planning zoning for random but that's about
the extent of it
and then in this body but kind of outside looking in and
correct me where
I'm wrong it seems like there's this
fun that I liken to and I could be totally off base but I
liken it to Jerry
Jones when he or stadiums when they went to a seat
licensing type revenue source
because it's a new revenue source that doesn't have as I
listen to miss Mcdade
doesn't have these restrictions tied to it and then I
listened to your comments
and and I try to read read through that and it sounds like
it's where is that
going and I hear you hear services often and then you hear
there's we have this
this fund that is not doesn't have these restrictions that
we can use for other
things and so really what it comes down to me is I've heard
services I've heard
other things I've heard
there's a few different these Monica but there's no there's
no detail to that
right so so what does an after-school program cost and so I
think that's kind
of I don't want to get to a position where we're saying if
you're gonna get
one million dollars we want five hundred thousand I'm not
saying that I mean I
don't want to qualify it that way and and to manage the
fluctuation of it I get
that so maybe it's a percentage that's applied but I think
I see a two-pronged
process there's a percentage that says this much gets rein
vested in our
community whatever you're expecting to get if you whenever
you realize it
that's what we want and there should be a menu of what does
an after-school
program cost what are I've heard services but I've not
heard anyone
detail more than two you know so what what other services
are there's after
school there's budgeting services there's services through
the United Way
but what yeah yeah so I just is there's an exhaustive list
of services and then
what are those costs so then when we went when a project
comes in and there's
four hundred thousand dollars to be had and then we could
have a condo candy
conversation hey housing authority can say hey we have this
project coming on
that we need to buy that we can't really afford to deviate
from right now and so
I think that is the that's the miss for me I don't know
that this board is aware
that you have generally where that there's projects coming
up that you need
to purchase but not fully aware of where you are in that
process of purchasing
purchasing those so veranda comes online there's seven
hundred thousand dollars
the housing department saying we can do this with that
seven hundred thousand
dollars and whatever this whatever City Council was
expecting to happen with the
seven hundred thousand dollars and especially that project
that did not make
kind of looking at the outside into that it's kind of like
there's these the
housing authority said hey we have this project it's gonna
bring in this much
revenue here's what we can do with it and the City Council
's like where's that
money going and and and I think that's kind of the
disconnect for me just
outside looking in what what what is the exhaustive list of
services that are at
our disposal how much of those cost and what percentage of
this the money with
no strings attached to it makes it right for the for the
citizens are from for
our our charge you know and so that that kind of thing yes
my name is Maddie
Jones I'm with Codes Rose law firm counsel to the house of
authority with
respect to the services the QAP lists a cafeteria list of
services by the AP
QAP is what is the qualified allocation plan okay the
qualified allocation plan
is the document that's ultimately signed by the governor
that dictates the
scoring criteria and the rules for the state's award of tax
credits and that's
for the 9% program in the 4% program and that's for the low
-income housing tax
credit program okay thank you given that qualified
allocation plan called the QAP
every state has one then that each state gets to decide how
to waypoints to give
out the funds and it's a department it's a Treasury program
and it's an
allocation of credits so to answer your question about the
services the
developer and make an application chooses several of points
related
services and those services are delivered as a requirement
of their
receipt of the credits okay then when you get to your
process this the form
and the application that you're proposing that's the city's
document
that's not the housing authorities documents I wanted to
just go on record
of saying while the housing authority I believe may have
already weighed in on
general perceptions that I believe the QAP actually speaks
to in the document
that it's the municipality that needs to be comfortable
with that because there
are legal impediments and issues related to fair housing
laws etc with respect to
your process okay so that's probably that's just a city
role and with respect
to the funds I think that's the second part of your
question when the developer
fee comes to the housing authority those funds are the
housing authorities funds
the housing authority can then through vote decide how to
disperse those funds
for various programs some of which are listed and I think
the dollar amounts
would change but I think as Miss May Day said she in
response to the time frame
threw out some ideas which were not voted by the board so
those numbers when
the if the funds are there you put it in the budget you
spend it if the funds
aren't there you don't put it in the budget so you can't
spend it so but the
legal body of the housing authorities a separate political
subdivision state of
Texas and they have the same Stuart level fiduciary
responsibilities as the
city is with respect to this but the money they would spend
would be
mission-driven deliverables be it services or housing that
hope that
answers your question outstanding thank you
you were asking if if then housing authority had any
concerns about the
application process and I think we actually have something
of an answer to
that yeah I just read it it's on if it's on exhibit 3h and
it's on page 132 to
134 of that exhibit where it was a letter from Miss McDade
to Sarah Kutcher
on September 14 2017 so I think that that really answers
part of what no no
no because unless and I don't know the underlying process
of the draft of this
letter my question was addressed to the board I do
understand that miss McDade
share you sent a letter basically saying this thing ought
to be shelved until
we've come up with a policy to better address affordable
housing so you will
better understand the need availability and resources
available so was that
letter a letter that was approved by the board of directors
for the Denton
Housing Authority no okay so then then might I ask this
because I don't I mean
you may not be able to answer my question then today quite
frankly I just
simply posed the question to say we are more than willing
and I will say that
yes I totally understand that the money that comes in from
the developer fees
and goes to the Denton Housing Authority is legally their
money I don't think
anybody here has said anything different than that but the
source of those funds
comes from a partnership or a policy request from the Dent
on Housing
Authority board with the city of Denton so of course it's
going to be their money
legally the city's not going to come in there and tell you
how to do it but to
receive that money you've asked for a partnership with the
city of Denton so
so if you can't answer that question that's fine because I
just and if the
answer is we don't like the application process and we don
't want to have
anything to do with it that's real okay too I mean that's
really what this
meeting is for is to get us unstuck from where we are in
moving forward because
we will get other people coming into this city wanting to
do affordable
housing projects and they'll have two choices they can come
directly to the
city or the city could direct them to to work with the Dent
on Housing Authority
or they could come to the Denton three options or they
could come to the
Denton Housing Authority on their own either way all of
that information
eventually will have to still be worked through if it's a
partnership with the
Denton Housing Authority between the Housing Authority and
the City Council so
I have no problem with that I'm just trying to understand
for us we've
developed this application process for this and if you don
't like it fair
enough if you have some other recommendations or
suggestions more than
open to that yes yes I want to make sure I stated sure the
response quickly so
when you said the partnership process the actual
application that you may or
may not Institute the QAP has developers going to cities to
get consent and those
you mean is that are those the resolutions of support okay
all right
okay and that is solely within your purview oh no
understand okay so when
you say the partnership process I want to make sure that no
no understand okay
so then the the way in would not be okay so formal way in
when you say the
partnership between the Housing Authority and the city no
no I understand
it's not a formal legal document it's a it's a sometimes
what works best in that
is when everybody's got the same common goal and everybody
knows and as far as
affordable housing that that we're all working together we
're not going to be
issuing partnership agreements and those kind of things but
it's how do we work
together to achieve the same common goal okay I just want
to make sure yes thank
you very much I appreciate that yes ma'am thank you sure I
think when
council members talk about partnership I think part of what
we're talking about
is if we're agreeing to forego property taxes then then
that makes us partners
in a way and and so so if we're foregoing property taxes on
one of these
units and some of those could be significant then then then
we have we
have by that vote or by that decision become partners and
and I think for some
of us the our return on that partnership our return on that
investment is we have
more affordable housing and there may be some folks on the
council that well I
want a little bit more than that I want to know about some
programming return
investment also or it may be some other kind of return on
investment I'm not
sure but but I think that's that's and council members
correct me if I'm if I'm
miss interpreting what we mean by partnership because that
's what I'm
thinking of when I'm thinking about I've got to be honest
with you I struggle
when you say that by entering into these informal
partnerships that will have
more affordable housing a developer can come in here and
ask us to for a support
a resolution of support and the housing authority not be
involved at all and
that's nothing against the housing I'm just saying so we do
have the
opportunity to have more affordable housing the thing is
can we have the
same amount of affordable housing but because of struct
uring this sort of
informal kind of working together we're able to capture
some of those fees that
normally would not be infused back in the community and
allow those fees to be
transferred to the Denton Housing Authority who can then
provide more
services for those affordable housing units that could have
come in anyway so
we it's not a zero-sum game we do obtain a benefit out of
the same amount of
money that's what they teach you all in negotiation how do
you take the same
amount of money and create more value and this is the way
to do it because
affordable housing units can come in it's how do you take
that and the fees
associated with that and make that pie bigger without
having anybody to have to
pay more money if you can do that you've really achieved a
very good a very good
goal yes sir yes and then there are different options to
provide affordable
housing and that a developer can can do it on their own by
coming to the city
and get into resolution there are two programs under the
tax rate program the
nine percent and the four percent we've spoken about that
quite a bit the nine
percent offers quite a bit more equity in the sale those
tax credits to in fact
make some of those projects financially viable without a
tax exemption in the
last year or so last couple of years because of the market
of the tax credits
I have not seen a single four percent tax credit program in
the state of Texas
that's funded without either a grant from a public entity
or tax exemption
only because of the price that the tax credit are being
sold and a four percent
only provides about 30 percent equity of the construction
cost so nine percent
can probably be done without a tax exemption as we talked
before a nine
percent is very very competitive there was only eight of
those awarded in
recent three the Dallas Fort Worth didn't area last year
and so they're very
competitive most of the units are done under the four
percent which financially
it's either a grant or a tax exemption that they would
allow them to be
feasible was the palladium and I'm going to recognize mayor
protein right now was
the palladium a nine percent or four percent with the nine
percent okay mayor
protein thank you I just wanted to clarify about the policy
statement so in
1970 when the city actually decided to agree to the
creation of the DHA which
was a part of the state application there was a policy
statement in there
about why the city was going to enter into this agreement
to do that so that
policy was there we recognized as a council that we wanted
to update that
and so the policy statement and exhibit to
policy statement and exhibit to states to meet the housing
and development
objectives of the city of Denton it shall be the city's
policy to analyze
projects requesting support for proposed HTC housing tax
credits such analysis is
to determine if the projects comply with certain principles
and policies in our
2030 plan as well as various other master strategic and
redevelopment or
neighborhood plans adopted by the city the goal of this
analysis is a to
establish if HTC projects merit local support and B
prioritize these
submissions if more than a single proposal is received
during an evaluation
period the Office of Development Services serves as the
city's primary
staff and point of contact for all of these programs my
question would be you
know in terms of a policy statement I think the council
believes this is a
pretty good policy statement and the idea was at least in
the letter from
October we don't want to enter into any type of application
process until the
city's entered into a clear policy statement in my mind the
policy is clear
we support housing but we have certain metrics that we'd
like to be met and
those metrics are laid out in the application process so
what I came here
expecting to accomplish in the hour and a half or so that
we have was that you
know to the extent that there's a disagreement about the
application
process what is that where could it be refined and if the
idea is that there's
we just don't want an application we really do need to know
that because
that's going to direct the council going forward I think
the last application
that we got I'm sorry not palladium but the one prior to
that that we ended up
rejecting we had I want to say it was three to four weeks
if that maybe two
weeks to review the application we didn't have sufficient
information and
the council that was there Councilman Briggs and Council
member Gregory if you
remember differently please jump in we felt very rushed we
felt like we didn't
have enough information we felt like we didn't have a
process for vetting
projects we we felt like we were asking for information
piecemeal and not getting
it and it was so time-compressed that we couldn't do our
jobs and meet our
obligations so this was a way for us to address what our
obligations are to the
people that elected us to support you know the city
programs that we are here
to support so that's kind of our I thought that was clear
going into this
that we had been very rushed in that process this came out
of how do we make
this more organized if there's a problem with the policy or
there's a problem
with the application we really need some feedback more so
than just we don't like
it unless that's that's the feedback did you want to you
wanted to share some
comments right she thought and Sarah absolutely hit on my
points very
articulately and I think the only thing that I would add is
you know the other
component of putting that application process together was
we continue to get
asked well what does the council want to see what kind of
information do they
want to see and this isn't wasn't necessarily an attempt to
force the
Housing Authority to justify every project as much as
collect the data
neatly and provide the council with a little bit more time
ahead you know in
order to evaluate these processes which is only fair on
their end as well if
we're talking about some of the trade-offs so it was just
an information
gathering situation I had seen in the letter that there was
a concern it might
have a chilling effect on development and the irony with
that is that we use
many of the cities in Texas with a very active Housing
Authority processes to
base the the form the information gathering form on so I
think if there's
a misunderstanding that this was some attempt to have the
council weigh in as
a another body to approve this it actually was intended
just the opposite
in order to very concisely grab the information that you
know that we
continue to get asked questions of this the questions in
the two or three
applications that we've been through the two every projects
from the council and
really virtually identical each time so it was very simple
to put it into a
format so they could easily go through and decide whether
or not it was a
project they felt comfortable supporting if there was
enough wins for the
community and some of the council members are concerned
about the benefits
for the residents and whether there was enough services to
help them
transition out but there's nothing more than to compile
information neatly and
for the council and give you time to think and I think
there's been this
misconception that it was just another layer of approval
when that's really
was not the point up front I'm sorry but from our
perspective it is it's another
layer it's another application it's more documents and it's
more forms and
papers so that that it is for us that's what it is
this was again based on numerous other cities in Texas and
the experiences are
going through to try to provide very obvious rules very
obvious prescriptive
processes which is only fair that we provide that and you
know if the
question is what does the council need you know we tried to
articulate that
we're more than willing to take a look at altering the form
and bringing it
back to them it was never intended to be an encumbrance
upon the project it was
more you know intended to streamline it for everyone so
point of clarification
when you say we look at it as a layer who are the we didn't
housing authority
the board I mean has the board given direction on this
application process
either with just totally rejecting it or providing feedback
or some other kind of
process that would be less onerous to the board first of
all the policy that
your staff created it never came to the board and we came
to a meeting and it
was presented to us at that meeting we never got it or saw
it prior to and so
we had so many days that we need to provide some input or
whatever so
okay never went to the board your city policy never went to
our board of
commissioners for approval or not or just or just
discussion right yeah okay
so I guess my request would be that it maybe y'all could
put that on an agenda
for discussion and provide us with some feedback so we can
take a look at that
and make some modifications I mean again we're not trying
to mean this as a as
another layer I certainly understand and respect if that's
how y'all see it and
if that's the case show us what that would look like where
you didn't believe
it to be that and if it means there's nothing there then as
mayor pro tem said
we would like that information as well I mean it's interest
that remember the two
the two applications the nine percent applications that the
City Council
approved it specifically you specifically said and it was
motioned by
another member that you do not as long as you do not work
with the Housing
Authority and it was asked that it couldn't be added to the
resolution so
you specifically were not going to approve a developers
resolution if they
were working with the Housing Authority well and that was
at the very beginning
of this and it was after we tried to have a conversation I
mean if we're
going to go back and revisit history don't have a problem
doing that I can't
make the motion as the chair so I did not make the motion
as the chair but
that was early on in the process when we had tried to
figure out how do we get
this policy together how do we formulate it together if we
want to go back and
revisit all that we can do that I think what we need to do
is is simply I'll say
it again if we could just get some feedback on the
application that we've
provided from our staff to say hey and I believe the letter
was what is your
feedback on this not saying this is what it needs to be so
we're in respect of
everybody's time we're going to wrap this up so I simply
respectfully request
that within a reasonable amount of time since we're not hur
ried by any
development coming in coming forward that the board give
this council some
feedback on the application process or the application form
that we've submitted
for review and that if we need to we'll get together with
maybe some members of
the board and members of the council and an ad hoc
committee and if there's some
concerns try to hash that out and if at the end of the day
we can't come to an
agreement that's okay too that happens all the time so I'm
just trying to
facilitate getting us off-center so yes you sure can yes
absolutely
that application and what I think we're referring to now is
an application for
developers who are coming to the city with a development in
mind
does that does that application go to the developers that
go to the Housing
Authority we will be asking everyone to complete the same
application it's
really again we're using application for formal approval it
's really an
information tool maybe I'm using the wrong word I apologize
requesting your permission all right so what you're at what
you're doing I think
is you're being kind enough to send it over and say hey
took a lucky test and
what's your feedback on it I think that's so it is my
understanding that
the Housing Authority provides no data on that information
gathering sheet
that we have sent over for their sort of feedback or is
there some information
there that is required for the Housing Authority to
complete does anybody have
an answer that question if you could if you could come to
the yes so that yeah
that the the paperwork that was sent over which precip
itated the letter from
Sherry we developed a draft of a housing tax credit
application process that all
developers would go through and then we shared it with Sher
ry to discuss any
feedback that the Housing Authority might have on the
application as we
proposed it and that's what resulted in her response okay
so my question is that
specific application the actual form of that in the request
on that application
is there any questions on that application that require the
Denton
Housing Authority to complete it or does it simply go
solely to the developer for
their completion it is developed so that any developer
would fill it out there
are questions that might point out that is the Housing
Authority meaning we're
asking if it's tax-exempt or not but all developers are
required to fill out so
that's the Housing Authority doesn't complete any of those
questions they
nothing that's different than any developer would have to
okay
financial narrative of attachment checklist section and sub
section D
number three says a detailed plan clearly showing how
project revenues
will be distributed using the uses by the public housing
partner and community
contribution investment I think that answer would have to
come from the
house of course if in fact and that and that's a question I
would like
okay so so yes so to answer that dr. stream there there are
some things that
the Housing Authority board would have to look at and
consider that's why we
sent it to you to get your feedback we I don't think the
letter said this is what
we're doing take it or leave it it's like help us
understand how we can
better this process so if y'all could just get it on the
agenda
that we will review and discuss that project and get
results of those two
things back to you that would be perfect I appreciate that
yes yes I didn't know
it given up my place in line when I yielded to mr. Hudson
and I only come in
as a point of clarification yes I know we've been here for
extended pre time
no it's been great just a couple of things within the
application process
and I don't want you to feel City Council piece of people
that we were
trying to rush the issue but the qualification process for
the nine
percent funding is a very very short opportunity window
that we ever have
that they we put together within the state a point system
and that point
system unfortunately for us changes every single year so it
's an ongoing
moving target on trying to qualify for the scoring on those
things this last
year was one of the very first times in five years and I
went to the previous
one six years ago that we've had an opportunity even be
hope that we might
be qualified to qualify for that that process actually
opened the in December
like this the first part of December first week in December
it closed out for
submitting application in January January 15th January 16th
I'm sure that
Ramon can can fill us in on that then you had to like March
15th down all
those those processes in order so when we came to you we
felt handicapped also
I know what you thought we were rushing you but it's a very
short qualification
period so it's it's awkward for all of us because as I say
we weren't prepared
to give you answers because we hadn't been eligible you
even think about it
for so many years in the meantime we've gotten some answers
from United Way and
at one of those meetings that we had you were asking us
what programs you were
going to provide well we gave you some very general ideas
we weren't very
specific about it but now we've gone back with United Way
now that we had some
needs needs assessment and we have some things we can
really put our handle on
to we need transportation for people we need ongoing
education we need after
school programs so all those parts of things that help them
qualify for what
our community particularly needs and the things that they
're good at bringing
back to our community they feel comfortable with is part of
that packet
we try to negotiate for you so as I said that's just
clarification so the United
Way needs assessment is going to be a big help to us and we
've already funded
part of that out in order to make sure that we're working
with them to get
programs in our community but we also want them to help run
those programs
because they can share those with other communities other
than just the ones we
bring online but to bring you up to date if I can very
quickly with 9% and 4%
monies within our community we these are things that are
listed in our packet I
don't know how much of that package you got but pecan place
which is owned by
Denton Housing Authority represents 24 units okay 9% money
project that was
approved and is a part of us since 1994 is a country place
apartments and they've
got the water for expensive Spencer Oaks Spencer Oaks it's
a 9% project you got
pebble brook apartments it's a 4% project you got Rosemont
these have
nothing to do the ones that most recently I'm reading have
nothing to do
with the Denton Housing Authority Rosemont Pecan Creek Prim
rose Sequoia
Park Quail Creek North and then Renaissance Court which is
ours that's 150
units Providence Place 2 Renaissance Court twice I think we
had these in our
backup okay I just wanted to make sure but all those are 9%
helpful or don't
you already have that backup material we have the backup I
think what I think
we're at a point as far as I'm concerned I think what we've
done is we've talked
about our different interests and in our different
approaches and how can we find
some common ground and then how do we move forward with
anything based upon
how we move how we come to either an agreement or some type
of collaborative
effort on the application process however you guys decided
so really we're
just sort of waiting on that feedback whatever that may be
to determine that
and I just want to on behalf of the Denton Housing
Authority thank you mayor
for moving forward with this question and this need for
discussion and thank
you council members for being willing to give your time we
value this
relationship we want it to be positive it is our intention
to continue with you
to make sure that it is based on the guidelines we have
currently to live
with we plan to go forward and thank you so much for giving
us this time thank
you I appreciate y'all coming and sharing with us because
this is this is
how you come up with the best the best process and the best
decision you come
together you discuss your interests your goals your
agreements your
disagreements and you try to find the common ground and I
appreciate all your
hard work look I've been a landlord of the Denton Housing
Authority I don't
even know how long 15 or 20 years so I understand the
importance of that
program and what they what you all provide for the
community and it's a
great need so anything we can do to continue to further
that mission I think
this council stands ready and willing to do that with the
cooperation of the
dentist if salty does have information available that has
not been presented to
you I'd like to make sure you get it okay sure thing all
right okay thank you
very much we will go ahead and adjourn this portion of the
Denton City Council
meeting at 1 o at 1 13 p.m. on what's today December the 4
th 2017