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[00:00:02]

I NOW DECLARE THE PLAINTIFF CITY COUNCILORS CONVENED AN OPEN SESSION THAT ALL MEMBERS ARE PRESENT.

NO, WE ARE JUST MAKING SURE STUNNING.

ANTHONY WAS EARLY .

THE COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION AND TRAINING REMAIN TO HOLD A CLOSED EXECUTIVE MEETING PURSUANT TO THE PROVISIONS OF VERNON TEXAS CODE'S ANNOTATED GOVERNMENT CODE CHAPTER 5 51.

THE OPEN MEETINGS ACT IN ACCORDANCE WITH THE AUTHORITY CONTAINED IN SECTION 5 51 0 71 TO CONSULT WITH THE ATTORNEY.

SECTION 5 51 0 87 TO DISCUSS ECONOMIC DEVELOPMENT MATTERS, SECTION 5 51 0.0 76 DELIBERATION REGARDING SECURITY DEVICES, SECURITY INFRASTRUCTURE AND SECURITY AUDITS, AND SECTION 5 51 0 74 TO DISCUSS PERSONNEL MA MATTERS.

THANK YOU.

I NOW TO DECLARE THAT THE P PLANO CITY COUNCIL PRELIMINARY OPEN MEETING IS CONVENED IN OPEN SESSION THAT ALL COUNCIL MEMBERS ARE PRESENT.

OUR FIRST ITEM IS THE PRELIMINARY AGENDA IS CONSIDERATION AND ACTION RESULTING IN THE EXECUTIVE SESSION PERSONNEL APPOINTMENTS BOARD OF, UH, OF ADJUSTMENT.

UH, MR. MAYOR, THE COUNCIL MEMBER, UH, RICK DELEY AND I DISCUSSED THIS.

WE'VE DECIDED TO TABLE IT TO THE FEBRUARY 13TH MEETING.

SECOND, THE MOTION TO TABLE.

THANK YOU.

I HAVE A MOTION, A SECOND TO TABLE THE, UH, BOARD OF ADJUSTMENT APPOINTMENT.

ALL IN FAVOR? RAISE YOUR HAND PLEASE.

THANK YOU.

MOTION PASSES.

MAD OATH.

OUR NEXT ITEM IS ITEM TWO, SHORT TERM RENTAL UPDATE.

MAYOR AND COUNSEL, AS CHRISTINA DAY COMES DOWN FOR THIS PRESENTATION, I JUST WANTED TO, UH, REMIND COUNSEL THAT AT OUR DECEMBER MEETING, I THINK IT WAS DECEMBER, SORRY, IT'S BEEN A, A BUSY SIX WEEKS.

UM, COUNSEL INSTRUCTED US TO, TO GO BACK AND DO SOME ADDITIONAL WORK, UM, ON SHORT-TERM RENTALS.

AND THIS IS A, AN UPDATE FOR, UH, BOTH COUNSEL AND THE PUBLIC TO HEAR WHAT PROGRESS WE'VE MADE, WHAT SOME OF THE NEXT STEPS ARE.

AND WITH THAT, CHRISTINA, TAKE IT AWAY.

RIGHT? GOOD EVENING, MAYOR, COUNSEL AND EXECUTIVES.

UM, I'M HERE TO TALK TO YOU A LITTLE BIT ABOUT WHAT WE'VE BEEN DOING OVER THE LAST FEW MONTHS AND THEN WHAT WE HAVE LEFT TO DO.

SO WITH THAT, UH, SOME BACKGROUND, UH, THAT WAS SO WONDERFULLY TEED UP, BY THE CITY MANAGER.

ON OCTOBER 10TH, THE COUNCIL DID DIRECT STAFF TO PREPARE REGISTRATION PROGRAM, IMPLEMENT A PROCESS TO CONSIDER ORDINANCE CHANGES, AND THAT WE WERE TO UTILIZE A SIMILAR PROCESS TO THAT USED BY THE CITY OF ARLINGTON, TEXAS.

UH, NOVEMBER 14TH, WE BROUGHT BACK A REGISTRATION ORDINANCE THAT DUE TO COMMENT, WAS TABLED TO A FUTURE MEETING.

AND THEN ON THE 21ST OF NOVEMBER, THE STAFF DID PROVIDE AN UPDATE TO THE PLANNING AND ZONING COMMISSION.

SO, PROGRESS TO DATE SINCE, UH, THE LAST TIME WE WERE BEFORE COUNSEL WITH THIS ISSUE, WE HAVE WORKED ON PROCURING DATA, DEVELOPING AN OUTREACH PLAN, AND RESEARCHING OTHER CITIES.

WE HAVE AN INTERNAL WORKING GROUP THAT'S MEETING REGULARLY EVERY TWO WEEKS.

WE GET TOGETHER, POLICE PUBLIC WORKS, THE CITY ATTORNEY'S OFFICE, PROSECUTION OFFICE, NEIGHBORHOOD SERVICES, TECHNOLOGY SOLUTIONS, BUILDING INSPECTIONS, GOVERNMENT RELATIONS, THE HEALTH DEPARTMENT, AND THE PLANNING DEPARTMENT.

SO I WENT THROUGH ALL THAT.

JUST TO TELL YOU, IT IS A LOT OF PEOPLE WE'RE TRYING TO BE VERY THOROUGH AND, UH, HAVE ALL THE PARTIES AT THE TABLE.

UM, WE ALSO HAVE BEEN PROVIDING EXECUTIVE UPDATES ON THE PROGRESS.

SO WE HAVE MET ON, UH, SEVERAL OCCASIONS WITH ARLINGTON STAFF TO UNDERSTAND THEIR PROCESS AND, UH, ANY THE SOLUTIONS THEY FOUND AND ANY ALSO KEY DIFFERENCES BETWEEN, UH, US AND THEM AS A CITY.

SO THEY HAVE TOLD US THAT THEY UTILIZED AUSTIN AND SAN ANTONIO AS EXAMPLES, THAT THEY, IT APPEARED TO THEM THAT THOSE WERE THE LEADERS AT THE TIME THEY WERE GOING THROUGH THEIR PROCESS.

UH, THEY MET WITH INTERESTED PARTIES IN THEIR PROCESS, BOTH SEPARATELY AND TOGETHER.

THEY DID NOT USE A CONSULTANT, BUT UTILIZED AN ONLINE SURVEY TOGETHER INPUT AS WELL.

THEY PRESENTED A FOUR OR FIVE REGULATORY OPTIONS FOR PUBLIC CONSIDERATION AT A TOWN HALL, AND THAT THEY FELT LIKE WAS VERY SUCCESSFUL AT, UH, GIVING THE PUBLIC AN OPPORTUNITY TO PROVIDE DIRECT FEEDBACK ON THE SOLUTION.

UM, WE KNOW THAT THEY HAVE SOME CLEAR, EXPLICIT ZONING DEFINITIONS, RESTRICTING TIME OF RESIDENCE, UH, FOR RESIDENTIAL USES THAT WERE HELPFUL IN THEM HAVING A HISTORY OF PROHIBITION.

UM, THAT SORT OF TEED UP THINGS A LITTLE DIFFERENTLY THAN, UH, WHERE WE

[00:05:01]

SIT HERE IN PLANO.

SO WE'VE ALSO MET WITH INTERESTED CITIZENS TO DISCUSS THEIR CONCERNS.

AND WE'VE HELD INTERVIEWS WITH FOUR POTENTIAL FACILITATORS TO ASSIST WITH PUBLIC OUTREACH.

AND WE, UH, ARE WORKING TOWARDS A CONTRACT WITH, UH, ONE OF THOSE, UH, FACILITATORS.

SO DATA AND RESEARCH.

UM, WE HAVE SUBSTANTIALLY COMPLETED OUR RESEARCH ON OTHER CITY'S ZONING ORDINANCES AND HOW THEY ADDRESS THIS ISSUE.

UM, WE ARE VERY CLOSE.

UH, WE ANTICIPATE A CONTRACT WILL BE SIGNED THIS WEEK WITH DECKERT, A THIRD PARTY DATA SOURCE.

AND SO WE SHOULD START GETTING DATA, UM, VERY SOON BASED ON THIS, UH, FAIRLY SHORT TIMELINE.

ALSO, WE'VE CONTINUED TO TRACK DATA THROUGH THE POLICE DEPARTMENT, AND I HAVE SOME UPDATES FOR THE, UH, 20, 22 YEAR FOR YOU ON THAT.

SO PER THE POLICE DEPARTMENT, THERE WERE 141 CALLS FOR SERVICE DURING THE LAST CALENDAR YEAR.

AND THAT INV THEY KNOW OF 57 PROPERTIES, UH, THAT WERE INVOLVED IN CALLS FOR SERVICE THAT ALSO ARE SHORT-TERM RENTALS.

UM, SIX OF THOSE PROPERTIES, HOWEVER, UH, HAD 41% OF THE CALLS.

SO WE HAD A FEW THAT ARE, UH, DRIVING THE MAJORITY OF CALLS, NOT REALLY THE MAJORITY, BUT, UH, HIGH NUMBER OF CALLS, LET'S PUT IT THAT WAY.

SO YOU CAN SEE THAT BROKEN OUT HERE.

UM, ONE SINGLE PROPERTY WITH 26 CALLS, ANOTHER WITH 10, AND THEN IT DROPS OFF FAIRLY QUICKLY TO QUITE A FEW WITH, UH, I THINK THERE'S 10 LISTED THERE WITH THREE CALLS.

SO THIS IS ALL THE PROPERTIES WITH THREE OR MORE CALLS.

SO YOU CAN SEE THERE'S, UM, JUST A LIMITED NUMBER THAT SEEM TO HAVE A NUMBER OF CONCERNS ON A REGULAR BASIS.

SO HOW DO THESE CALLS BREAK OUT? UM, THE VAST MAJORITY OF CONCERNS ARE NOISE COMPLAINTS.

UM, THAT'S CATEGORIZED ALSO WITH PARTY ALCOHOL DRUGS.

UM, AT 81, AGAIN, THE MOST SIGNIFICANT NUMBER OF INCIDENTS, UM, THE SECOND MOST BEING PARKING OR TRAFFIC.

AND THOSE REPRESENT 73% OF ALL THE CALLS FOR SERVICE THAT THE CITY HAS RECEIVED.

UH, I BELIEVE THE NOISE COMPLAINTS, UM, WE'RE ALSO, I THINK THERE WERE, LET ME SEE IF I CAN GET TO MY NOTES.

UM, THERE WERE 62 NOISE COMPLAINTS OUT OF THE 81.

SO, UH, EVEN THAT TOP NUMBER, THE MAJORITY OF THAT LINE ITEM IS NOISE COMPLAINTS.

SO HOW DOES THIS STACK UP AGAINST THE PREVIOUS YEARS? THIS DATA'S BEEN TRACKED SINCE 2019, AND YOU CAN SEE THE DARK BLUE LINE REPRESENTS 2022.

AND GENERALLY SPEAKING, THE, UH, CALLS FOR SERVICE BY MONTH WERE HIGHER THAN IN PREVIOUS YEARS.

UM, AND AS A TOTAL, ALTHOUGH THERE WERE TIMES IT DIPPED BELOW PRIOR YEARS, UM, GENERALLY IT WAS THERE WERE MORE CALLS FOR SERVICE LAST YEAR.

SO MOVING FORWARD, WE ARE CLOSE TO GETTING THAT CONTRACT FOR THE THIRD PARTY DATA.

UM, WE THEN SHOULD START RECEIVING THE DATA AND WE'LL START OUR ANALYSIS AS QUICKLY AS WE CAN.

UM, WE ARE ALSO VERY CLOSE TO FINALIZING A PUBLIC OUTREACH FACILITATOR CONTRACT.

WE HAVE MEETINGS ON THAT LATE THIS WEEK AND NEXT WEEK, UM, TO WITH SOME FINAL INTERVIEWS AND REACHING SOME CONCLUSIONS THERE.

AND THEN, UH, DISCUSSIONS BEFORE P AND Z ARE ANTICIPATED IN FEBRUARY, ALTHOUGH WE REALIZE THERE MAY BE SOME QUORUM ISSUES WITH P AND Z IN FEBRUARY, WHICH MAY, UH, CAUSE US TO WANNA PUSH THAT INTO MARCH.

BUT IF, IF WE HAVEN'T ENOUGH PEOPLE SITTING, WE WILL BE DOING THE UPDATE, UH, LIKELY THE SECOND MEETING IN FEBRUARY.

SO WITH THAT, UH, IT COMPLETES MY UPDATE.

UM, THERE ARE OTHER DEPARTMENT REPRESENTATIVES HERE IF YOU HAVE MORE DETAILED QUESTIONS.

AND I'M ALSO AVAILABLE FOR QUESTIONS.

LET ME, I HAVE TWO SPEAKERS, UH, SO IF WE DO HAVE SOME QUESTIONS FOR YOU, CHRISTINA, WE'LL CALL YOU BACK.

GREAT.

SO LET'S, LET'S HEAR FROM THE SPEAKERS ON THIS PARTICULAR ITEM.

THE FIRST SPEAKER IS BILL FRANCE.

[00:10:03]

HAPPY NEW YEAR.

UH, MAYOR MUNNS, MEMBERS OF CITY COUNCIL.

GOOD EVENING.

MY NAME IS BILL FRANCE AND I'M HERE AGAIN TONIGHT.

ON BEHALF OF THE PLANO, TEXAS NEIGHBORHOOD COALITION, WE'RE A GROUP OF VOLUNTEERS WITH ONE CLEAR GOAL, AND THAT'S TO ENSURE THE SAFETY AND CHARACTER OF OUR COMMUNITY BY PROHIBITING SHORT-TERM RENTALS IN OUR SINGLE FAMILY RESIDENTIAL NEIGHBORHOODS.

TONIGHT WE HAVE HEARD FROM THE CITY REGARDING AN UPDATE ON ACTIVITIES CONCERNING THIS ISSUE.

WE'RE HERE TONIGHT TO APPLAUD THESE EFFORTS.

OUR CITY LEADERS HAVE TAKEN THE RIGHT ACTION TO ADDRESS THIS PROLIFERATION ON SHORT-TERM RENTALS.

AS WE HAVE DEMONSTRATED ON MANY PREVIOUS OCCASIONS, WE BELIEVE THAT THE PRESENCE OF MANY HOTELS OPERATING IN SINGLE FAMILY RESIDENTIAL NEIGHBORHOODS IS A BLATANT DISREGARD OF OUR CITY'S LONG-STANDING ZONING LAWS.

TODAY THROUGHOUT NORTH TEXAS, CITIZENS HAVE BEEN WORKING TOGETHER WITH THEIR LOCAL GOVERNMENTS TO ADDRESS THIS PROBLEM WITHIN THE LAST 90 DAYS.

FORT WORTH CITY COUNCIL HAS REAFFIRMED THE PROHIBITION OF SHORT-TERM RENTALS THROUGHOUT THEIR CITY.

THE CITY OF DALLAS HAS EMBRACED THE KEEP IT SIMPLE SOLUTION THAT WILL PROHIBIT SHORT TERM RENTALS THROUGHOUT THE CITY OF DALLAS.

AND THE CIVIL ACTION AGAINST THE CITY OF ARLINGTON CHALLENGING ITS SHORT TERM RENTAL ORDINANCE, HAS AT LAST BEEN DISMISSED WITH PREJUDICE.

IT HAS BECOME CLEAR THAT THE POWER THAT RESTS IN THE HANDS OF OUR LOCAL GOVERNMENT TO LAWFULLY RESTRICT CERTAIN BUSINESSES FROM OPERATING IN RESIDENTIAL AREAS.

ALTHOUGH UNDER ASSAULT STAN FIRM, WE CONTINUE TO URGE OUR CITY LEADERSHIP TO REMAIN VIGILANT AND PROTECT THE RESIDENTS OF PLANO.

ALTHOUGH WE HAVE A RENEWED SENSE OF OPTIMISM, WE WILL NOT BE ABLE TO REST UNTIL THE PEACE AND TRANQUILITY OF OUR NEIGHBORHOODS ARE ONCE AGAIN SECURE.

WE WILL CONTINUE TO WORK TOGETHER WITH YOU, OUR GOVERNMENT, TO ENSURE THAT THIS ISSUE IS RESOLVED UNTIL THE LAST UNWELCOME SHORT-TERM RENTAL IN OUR SINGLE FAMILY RESIDENTIAL NEIGHBORHOODS IS SHUT DOWN.

THANK YOU AGAIN FOR YOUR TIME AND COMMITMENT TO THIS IMPORTANT ISSUE.

THANK YOU.

THE NEXT SPEAKER IS GREG PATILLO.

SORRY, I'M NOT TRYING TO MAKE GREG ENTRANCE.

IT'S TOO LATE.

, UH, GOOD EVENING, MAYOR AND COUNCIL.

GREG PATILLO, 29 YEAR RESIDENT OF PLANO.

I'VE SPOKEN WITH YOU REGARDING, UH, THE NEGATIVE IMPACT OF SHORT-TERM RENTALS, NOT UNOCCUPIED ON, UH, PLANO SCHOOLS AND BUSINESSES.

UH, YOU MAY HAVE ASKED YOURSELF, WELL, WHAT ABOUT BUSINESSES THAT CATER TO THE TRANSIENTS? AND LET'S TALK ABOUT THAT.

TONIGHT'S NOT BECAUSE I'M NOT AFRAID OF THEM CUZ I ONLY GET THREE MINUTES.

UM, LET'S TALK ABOUT THE RESTAURANT INDUSTRY AS A WHOLE.

UH, IF WE LOOK AT THE DATA PRESENTED BY THE RESTAURANT TRADE ASSOCIATION FROM 2019 SO THAT WE DON'T GET INTO THE COVID AND INFLATION ERA, UH, NUMBERS, WE LOOK AT AN AVERAGE SPEND FOR TEXAS OF $2,700 A YEAR PER PERSON IN RESTAURANT SPEND.

UH, THE AVERAGE TICKET PRICE IS ABOUT $11.

SO EACH PERSON EATS OUT ABOUT 250 SOME ODD TIMES A YEAR.

SO FOUR A STR R TO EQUATE THAT IT HAS TO BE OCCUPIED FOR ONE MEAL 67% OF THE TIME.

NOW, IF YOU GO FOR TWO MEALS A DAY, THEN THE OCCUPANCY GOES TO 33%.

SO IS THERE A BIG WIN FOR STR? NOT REALLY, BUT THEY'LL CLAIM IT.

SO, UM, THE REALITY IS THAT MOST OF US WHO TRAVEL AND ARE UNFAMILIAR WITH THE AREA WE WERE TRAVELING TO DO NOT USE THE YELLOW PAGES THAT'S STUFFED IN THE NIGHTSTAND OF OUR HOTEL.

WE NOW USE THIS SO RESTAURANTS, WHILE THEY, THEY MARKET TO LOCAL RESIDENTS THROUGH MEDIA CAMPAIGNS, PRINT ADS AND EVERYTHING ELSE, THAT MONEY IS WASTED ON HOMES THAT ARE, UH, NOT OWNER-OCCUPIED STR, WHICH RAISES THEIR CUSTOMER ACQUISITION COST TO GET RECOGNIZED HERE.

IT GETS EVEN MORE EXPENSIVE, WHICH RAISES THEIR CUSTOMER ACQUISITION COST EVEN MORE.

SO TO GET THEIR MONEY BACK, THEY HAVE TO HAVE A AVERAGE THAN HIGHER TICKET COST PLUS REPEAT BUSINESS.

THAT IS NOT AN OPTION WITH SHORT TERM MINUTES.

SO WHAT WE LOOK AT AS THE OTHER THING IS WHAT KEEPS THEM

[00:15:01]

IN PLANO TO ACTUALLY SPEND THEIR MONEY OUTTA A RESTAURANT AND THERE ANALYZE.

THE OTHER ISSUE IS WE HAVE, UH, CITIES CLOSE TO US THAT ARE INVESTING HEAVILY IN TOURISM.

UH, PLANO IS NOT A PROMINENT TOURISM, UH, LOCATION.

AND SO WE ARE AT ODDS WITH BEING ABLE TO SUPPORT A TOURISM INDUSTRY UNLESS WE TEAR DOWN A LOT OF COMMERCIAL REAL ESTATE AND BUILD NA NATIONAL AND INTERNATIONAL RECOGNIZED MUSEUMS. UM, SO THAT'S REALLY WHAT IT COMES DOWN TO IS WHAT THEY WILL CLAIM AS A WIN 20 SECONDS WILL BE A WIN FOR SOME RESTAURANTS.

PRIMARILY THOSE ON THE, UH, UH, LEGACY WEST AREA THAT BORDER WITH THE TOURIST INDUSTRY.

UM, BUT OTHER THAN THAT, THERE'S NO GOLD STAR HERE.

THANK YOU.

THANK YOU COUNSEL.

HAVE ANY QUESTIONS FOR STAFF MAYOR AND COUNSEL? LET ME REASSURE.

UM, AND I'LL REASSURE THE, THE CITIZENS THAT ARE HERE AS WELL WHEN WE'RE DOING PUBLIC OUTREACH, I'VE COMMITTED TO MR. FRANCE AND TO THE, UM, GROUPS THAT WE'VE SPOKEN WITH THAT WE WILL MAKE SURE THAT Y'ALL ARE AWARE OF ALL THOSE OPPORTUNITIES TO PROVIDE FEEDBACK.

UM, IT'S IMPORTANT FOR US AS WE GO FORWARD WITH THIS, THAT WE'RE THOROUGH IN MAKING SURE THAT THE ENTIRE COMMUNITY HAS A CHANCE FOR FEEDBACK IN THIS, WHICH IS WHY WE'RE BRINGING ON THAT THIRD PARTY, UM, GROUP TO MAKE SURE THAT WE DO THIS IN A PROFESSIONAL AND THOROUGH WAY, THAT WE HAVE SOME CHARETTES AND CONVERSATIONS THAT ALLOW US TO HAVE THE, THE, THE NUMBER AND THE UM, UH, THE QUALITY OF CONVERSATIONS THAT WE NEED TO HAVE.

SO WE'RE COMMITTED TO DOING THAT.

WE WILL STAY, UH, IN COMMUNICATION SO THAT WE, UH, ALLOW EVERYBODY TO KNOW THE DATES AND TIMES AND EVERYTHING ELSE THAT THOSE ARE AVAILABLE.

BUT WE LOOK FORWARD TO CONTINUING THAT CONVERSATION AND THEN BEING ABLE TO BRING BACK TO COUNCIL AT A FUTURE DATE, UH, THE RESULTS OF SOME OF THOSE EFFORTS.

SO WITH THAT, UH, IF COUNCIL IS OKAY, WE WILL MOVE FORWARD.

CONTINUE TO MOVE FORWARD.

EVERYBODY.

OKAY? YEAH.

ALRIGHT.

ITEM THREE, COMMUNITY HOUSING DEVELOPMENT ORGANIZATION, MAYOR AND COUNSEL.

WE HAD, UH, TWO COUNCIL MEMBERS REQUEST FOR A, A BRIEFING ON, UH, CHODOS WITHIN PLANO.

UM, SO IT TOOK US A LITTLE WHILE WITH, UH, SOME OF THE WORK THAT WE HAVE GOING ON TO BE ABLE TO GET THIS BACK AND BRING THIS BACK.

AND SO WE HAVE LAURIE SCHWARZ AND CHINETTE EDEN HERE TO BE ABLE TO PROVIDE US A, AN OVERVIEW OF THE, THE CHODOS.

GOOD EVENING EVERY BLEND.

UM, SO WE DO HAVE JUST A VERY BRIEF, UM, SLIDE SET JUST TO KIND OF GO OVER, UM, SOME JOURNAL INFORMATION THAT WAS PART OF THE MEMO.

UM, JUST FOR EVERYONE'S KNOWLEDGE, A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION OR A CHOTO IS DEFINED BY HUD AS A PRIVATE, NONPROFIT, COMMUNITY-BASED ORGANIZATION THAT HAS STAFF FOR THE CAPACITY TO DEVELOP AFFORDABLE HOUSING FOR THE COMMUNITY.

IT SERVES LISTED FOR YOU ON THE SLIDE AS ALSO ELIGIBLE ACTIVITIES, BUT PRIMARILY IT IS THE CONSTRUCTION AND REHABILITATION AND ACQUISITION OF HOUSING.

SO HUD DOES REQUIRE A 15% CHOTO SET ASIDE FOR HOME FUNDS.

AND SO AS A PARTICIPATING JURISDICTION, WE ARE REQUIRED BY A STATUTE TO SET ASIDE 15% OF THOSE FUNDS FOR CHODOS.

THE CHOTO HAS TO ACT AS THE OWNER, DEVELOPER, OR SPONSOR OF A PROJECT THAT IS AN ELIGIBLE SET ASIDE ACTIVITY.

AND ALL OF THOSE ACTIVITIES HAVE TO TAKE PLACE WITHIN FIVE YEARS OF THE HOME ALLOCATION.

SO THESE ARE THE, UH, STATUS OF THE REQUIRED 15% CHOTO SET ASIDES.

AND YOU CAN SEE THAT WE ONLY HAVE YEARS 2019 THROUGH 20 22, 20 17, AND 2018 HAVE BEEN ALLOCATED TO A PARTNER.

UM, AND THOSE NUMBERS ARE THERE, YOU CAN SEE IT GOES UP VERY SLIGHTLY EACH YEAR.

UM, BUT ABOUT 75 TO 90,000 OVER THE LAST FOUR YEARS PER YEAR.

AND THEN THE HISTORY OF THE PLANO CHODOS, WE'VE REALLY HAD TWO ORGANIZATIONS THAT HAVE PARTNERED WITH US AS CHODOS.

THE FIRST ONE WAS FROM 2004 TO 2017, WHICH IS THE PLANO HOUSING CORPORATION.

AND FROM 2017 TO CURRENT IS THE HOUSING CHANNEL.

UM, JUST AS A, AS A NOTE HERE ON THE SLIDE, THERE IS NO LIMIT TO THE NUMBER OF ORGANIZATIONS THAT CAN BE CERTIFIED AS A CHOTO BY ANY MUNICIPALITY.

UM, AND WE DO CONTINUE TO HAVE CONVERSATIONS WITH ORGANIZATIONS THAT ARE INTERESTED IN BECOMING A CHOTO FOR THE CITY.

SO, UH, JUST THOSE TWO THINGS JUST TO NOTE.

UM, AND WE ARE AVAILABLE FOR ANY QUESTIONS THAT THE COUNCIL MIGHT HAVE.

WELL, I OH, GO AHEAD.

GO AHEAD JULIE.

THE 15% THAT'S SET ASIDE, THAT'S REQUIRED TO BE SET ASIDE, IF WE DON'T SPEND IT, IS THERE ANY PENALTY OTHER THAN NEEDING TO RETURN THE MONEY? SO IT WOULD HAVE TO BE RETURNED.

WE CAN ASK FOR EXTENSIONS AND WE HAVE DONE THAT IN THE PAST, PARTICULARLY ON THINGS THAT, YOU KNOW, AS MARKETS CHANGED OR IF THERE WAS A PROBLEM WITH THE PROJECT.

WE'VE ASKED FOR EXTENSIONS.

IF WE GET TO THE POINT WHERE HUD IS NO LONGER WILLING TO OFFER US THOSE EXTENSIONS,

[00:20:01]

THEN AT THAT POINT WE WOULD HAVE TO, IT WOULD JUST RETURN, IT WOULD BE TAKEN OUT OF OUR LOCKS ACCOUNT, WHICH IS OUR FEDERAL ACCOUNT THAT IT'S JUST SET ASIDE IN, AND IT WOULD GO BACK INTO THE GENERAL HOME FUND THAT THE FEDERAL GOVERNMENT HAS.

OKAY.

BUT THERE'S NO ADDITIONAL PENALTY FOR NOT USING THOSE DOLLARS? NO.

OKAY.

THANK YOU.

MM-HMM.

SHALL, YES.

UH, THANK YOU LORI.

IN THE WRITEUP WE WERE GIVEN, IT SAYS THAT, UH, AND AS YOU JUST REVIEWED, IT SAYS, PLAINTIFF HOUSING CORPORATION WAS OUR SHOW UNTIL 2017, BUT IN THE WRITEUP IT SAYS THAT, UM, UH, THEY RECEIVED FUNDS FROM US ONLY UNTIL 2014.

WHAT HAPPENED DURING THAT GAP? THAT MIGHT BE A TYPO.

IS THAT A TYPO CHANT? WELL, 2014 APPEARS TWICE IN TWO SEPARATE PARAGRAPHS.

AND THEN IT SAYS, SO FIRST ITERATION IS, UM, UH, THEY RECEIVED FROM 1999 CONTINUED TO RECEIVE, UH, COMMUNITY DEVELOPMENT BLOCK GRANTS AND HOME FUNDS, UH, FROM THE CITY EVERY YEAR UNTIL 2014.

THREE PARAGRAPHS BELOW.

IT SAYS FROM 1999 TO 2014, THE ORGANIZATION APPLIED FOR CITY'S FUNDS ANNUALLY AND RECEIVED APPROXIMATELY 1.7 MILLION, UH, OVER 15 YEARS.

UM, SO THAT 15 YEARS ALSO SAYS FROM 2019 TO 2014.

BUT THEN IN THE NEXT PARAGRAPH IT SAYS ON JULY 12TH, 2017, UH, THEY REQUESTED TO TERMINATED THEIR EXISTING HOME CONTRACT.

RIGHT.

SO I DO KNOW THAT WE HAD SOME FUNDS RETURNED TO US.

AND THAT'S PART OF THE QUESTION THAT CAME UP.

ARE THOSE THE FUNDS THAT ARE FROM THE 20 15 20 16 PROGRAM YEAR? YES.

OKAY.

SO THAT IS THE ANSWER.

SO WE DID SET, WE DID PROVIDE THEM FUNDING, UM, FOR THAT, UM, TO THAT ORGANIZATION TO BE ABLE TO SPEND THAT MONEY, THAT MONEY ENDED UP BEING RETURNED TO US.

AND THAT CONTRACT, UM, WAS TERMINATED BY THE PLANO HOUSING CORPORATION.

AND THAT MONEY WAS THE MONEY THAT WE THEN TURNED AROUND AND REDISTRIBUTED TO THE HOUSING CHANNEL WHEN THAT TERMINATED CONTRACT WAS, WAS PRESENTED TO US AFTER 2017.

YES.

BECAUSE THEY HAVE, THERE'S A TIME PERIOD THAT THEY HAVE TO BE ABLE TO ALLOCATE, LIKE ONCE WE ALLOCATE IT, THERE'S A TIME PERIOD THAT THEY HAVE TO MEET IN ORDER TO COMPLETE PROJECTS OR AT LEAST TO TAKE STEPS THROUGH THE PROJECT.

SO IN OTHER WORDS, IF WE SAY WE'RE GONNA ALLOCATE MONEY TO YOU ON JANUARY 1ST, 2023, YOU HAVE UP TO TWO YEARS.

AND I'M GONNA LET CHINETTE CORRECT ME IF I'M WRONG, CUZ THESE ARE DETAILED FEDERAL REGULATIONS AND I'M DOING MY BEST.

UM, CUZ THEY CAN GET A LITTLE CONFUSING AT TIMES, BUT SHE'S OUR EXPERT.

BUT IF YOU STARTED ON JANUARY 1ST, 2023, YOU WOULD HAVE TWO YEARS IN ORDER TO IDENTIFY THAT PROJECT THAT YOU WERE GONNA BE SPENDING THAT FUND ON.

UM, AND THEN AT THAT POINT YOU WOULD HAVE AN ADDITIONAL, IS IT THREE YEARS AT THAT POINT? TWO ADDITIONAL.

OKAY.

PERFECT.

ALL RIGHT.

SO JUST MAKING SURE I'M RIGHT.

SO YOU WOULD HAVE AN ADDITIONAL THREE YEARS TO ACTUALLY EXPEND THOSE FUNDS BY COMPLETING THE PROJECT.

SO, YOU KNOW, IF YOU THINK ABOUT IT, IF YOU'RE LOOKING FOR A HOME, SOMETIMES IT TAKES A TIME TO FIND THE HOME.

ONCE YOU FIND THE HOME, YOU WANNA ENSURE THAT IT'S THE TYPE OF PROJECT THAT YOU WANT TO, TO PURCHASE.

AND THEN IT COULD TAKE UP TO THREE YEARS TO DO ALL OF THE WORK THAT'S REQUIRED TO GET A LOW TO MODERATE INCOME HOME BUYER INTO THAT HOUSE.

SO THERE'S, THERE'S A PROCESS, BUT FIVE YEARS IS THE TIMELINE.

WE HAVE ASKED FOR EXTENSIONS BEFORE, AND THAT HAS BEEN GRANTED.

HUDSON BARRY, UH, HAS BEEN WILLING TO WORK WITH US, BUT IT THERE, THERE COMES A POINT WHERE THEY, THEY SAY, NO, WE NEED TO, TO HAVE THAT MONEY SPENT.

OKAY.

THEN, AM I CORRECT IN INFERRING FROM THAT, THAT, UH, THERE WERE, THERE WERE HUD FUNDS AVAILABLE, THERE WERE HOME FUNDS AVAILABLE IN 20 15 16, BUT THEN THEY WERE RETURNED IN 2017 MM-HMM.

.

OKAY.

AND THE REASON THEY CITED WAS DUE TO RISING CONSTRUCTION COSTS.

THAT WAS WHAT WAS PROVIDED TO US IN WRITING.

YES, SIR.

IS THERE ANY REASON WHY IN THE PRECEDING THREE YEARS THAT FUNDS GRANTED IN PRIOR YEARS WEREN'T USED? WEREN'T USED BETWEEN 2014 AND 2017? IT, IF I'M READING THAT WAS, WAS THE MONIES THAT WERE BEING, THAT WAS RETURNED.

SO IN OTHER WORDS, UP TO 2014.

SO JUST REMEMBER THAT IF YOU THINK ABOUT IT, IF IT WAS 2014 THAT COULD BE USED ALL THE WAY UP TO 2019.

RIGHT? SO A LOT OF TIMES YOU'VE GOT SORT OF SHIFTING PROJECTS.

AND SO EVEN THOUGH IT'S ALLOCATED IN A PARTICULAR YEAR, IT DOESN'T HAVE TO BE COMPLETED IN A YEAR.

AND IT'S VERY POSSIBLE FOR ORGANIZATIONS TO HAVE MULTIPLE PROGRAM YEARS, MULTIPLE PROJECTS GOING WITH DIFFERENT DEADLINES.

AND SO THOSE PROJECTS UP UNTIL 2014, IF IT WAS USING 2014 MONEY, THEY COULD STILL HAVE BEEN FINISHING THOSE UP IN THE 2016 AND 2017 TIMEFRAME.

WHAT HAPPENED WAS, IS THE ALLOCATED MONEY THAT WAS GIVEN TO THEM IN THE 2015 AND 2016 PROGRAM YEARS WERE THE ONES THAT WERE RETURNED.

OKAY.

AND HAD, SO WHY I UNDERSTAND THAT, AND PRESUMABLY THERE WAS STILL ACTIVITY GOING ON DURING 2014 TO 2017 WITH PREVIOUSLY, UH, AWARDED AND ALLOCATED FUNDS.

YES.

UM, IF, IF THAT THREE YEAR GOLF

[00:25:01]

ONLY MEANT TO SAY THAT, THAT THOSE THREE YEARS REPRESENTATIVE MONEY AWARDED DURING THOSE YEARS, BUT THEN RETURNED AND SO THE MONEY WAS NEVER USED.

UM, THAT'S, THAT'S WHAT I FOUND, UM, NOT EXPLAINED IN HERE.

IS THERE A REASON THE RETURN OF THE FUNDS WASN'T, UM, DISCUSSED IN HERE? THE, AS FAR AS, I MEAN, WE'VE GIVEN YOU THE REASON THAT WE WERE TOLD THAT THE FUNDS WERE RETURNED.

WELL, I MEAN, WITHIN THE, THE WRITEUP, IT, IT, WHEN YOU AGREED ON JULY 12TH, 2017 THAT THEY REQUESTED TO TERMINATE THEIR EXISTING HOME CONTRACT AND THEY STATED THAT IT WAS DUE TO RISING CONSTRUCTION COSTS, THAT WAS THE REASON THAT WAS GIVEN TO US FOR RETURNING THE FUNDS.

RIGHT.

WHAT I MEAN IS THAT IN THE WRITEUP, UM, I DIDN'T ENCOUNTER ANY MENTION OF RETURNED FUNDS THAT, THAT, THAT THREE YEAR PERIOD, IF YOU LOOK AT THE NEXT PARAGRAPH, IT SAYS, DUE TO PHD'S WITHDRAWAL AS A CHOTO, THERE WERE 187,000 THAT HAD BEEN SET ASIDE FOR THE CREATION OF HOUSING UNITS.

SO THAT WAS THE MONEY IN ORDER FOR US TO RETAIN THAT.

AND I'M SORRY IF THAT WASN'T CLEAR, BUT THAT WAS A, THAT ONCE THEY STOPPED BEING A CHOTO, THAT MONEY THEN HAD TO BE ALLOCATED TO ANOTHER CHOTO.

OR WE HAD TO ASK FOR, I DON'T KNOW IF WE WERE AT MAX EXTENSION AT THAT POINT, BUT WE HAD TO FIND SOMEBODY ELSE TO USE THAT FUNDING AS A CHOTO OR ELSE WE WOULD'VE HAD TO HAVE SAID THAT WE WEREN'T GONNA BE ABLE TO USE THAT FUNDING.

OKAY.

SO THAT 187,000 WASN'T MERELY FUNDS THAT WE HAD RECEIVED AND HAD BEEN UN AWARDED, IT HAD BEEN GRANTED ALLOCATED TO PLANO HOUSING CORPORATION AND THEN RETURNED? YES.

OKAY.

YES.

OKAY.

ALRIGHT.

THANK YOU RICK.

THANK YOU.

UH, JUST A QUICK QUESTION.

UH, 20 20 20 WE RETURNED 90, 92,000 AND CHANGED, I GUESS ACCORDING TO YOUR, UH, OR WE HAD 92,000 SOMETHING THAT WASN'T UTILIZED.

WHAT, WHAT PERCENTAGE DID THAT REPRESENT OF THE 15% SET ASIDE? SO IN OTHER WORDS, HOW MUCH WAS ACT WERE WE ACTUALLY ABLE TO UTILIZE TO DO SOMETHING WITH VERSUS WHAT WE WEREN'T ABLE TO UTILIZE? WERE YOU ASKING IT FOR 2023 OR FOR JUST JUST 22? UH, YEAH, BUT THE 22 NUMBER, JUST CURIOUS CUZ THAT WAS THE HIGHEST NUMBER, SEEMED LIKE IT GOES UP A LITTLE BIT EACH YEAR.

WE STILL HAVE IT IN A LOCK'S ACCOUNT, SO IT'S NOT PHYSICALLY IN THE CITY'S POSSESSION.

IT IS SITTING IN A FEDERAL LOCKS ACCOUNT THAT WHEN WE ARE READY TO HAVE A PARTNER THAT IS WILLING TO EXPEND THOSE FUNDS AS A CHOTO, THEN WE SIMPLY ASK HUD FOR THAT ALLOCATION AND THEN WE MOVE FORWARD FROM THERE.

OKAY.

SO THE, SO THE THREE YEARS THAT YOU LISTED MM-HMM.

, ARE THE FUNDS ARE STILL AVAILABLE? YES.

YES, SIR.

OKAY.

YES.

UH, BUT MY, AGAIN, MY QUESTION IS FOUR YEARS.

YES.

WHAT, WHAT PERCENTAGE ARE WE ACTUALLY ABLE, HOW MUCH DO WE GIVE OUT OF THAT, UH, MONEY, UH, THAT WE HAVE THE 70, 80, 90,000 EACH YEAR, YOU KNOW, LEFT OVER THAT WE WEREN'T ABLE TO UTILIZE.

SO ALL OF THAT MONEY RIGHT NOW IS IN A SINGLE LOCKS ACCOUNT.

AND WHAT WOULD HAPPEN IS, IS IF WE HAD A CHOTO THAT CAME AND SUBMITTED AN APPLICATION THROUGH OUR PROCESS MM-HMM.

AND THAT IS GOING THROUGH THE CONSOLIDATED, THE CONSOLIDATED GRANT PROCESS.

IF THEY SUBMITTED IT TO US, CRC WOULD REVIEW IT.

IT'S POSSIBLE THEY COULD USE MULTIPLE YEARS DEPENDING ON WHAT THEY'RE SUBMITTING FOR.

AND THEN THAT MONEY WOULD GO AS PART OF YOUR ACTION PLAN AND YOU WOULD LOOK AT IT AS PART OF YOUR BUDGET.

AND THAT WOULD GO FORWARD TO HUD AS A RECOMMENDATION FOR THAT YEAR.

MM-HMM.

.

AND THEN AT THAT POINT, THAT MONEY WOULD, WOULD BE AVAILABLE TO BE SPENT WITHIN THE COMMUNITY.

OKAY.

BUT UNTIL WE HAVE, UNTIL WE HAVE A PROPOSAL, WE CAN'T.

IT JUST SITS THERE.

RIGHT.

SO, SO WHAT I'M HEARING YOU SAY, THIS IS WHAT I WAS GETTING AT.

SO WE, WE, WE HAVEN'T HAD A CHOTO THAT WAS AVAILABLE THAT WE WERE ABLE TO PARTNER WITH EVEN TO UTILIZE THESE FUNDS DURING THIS TIME PERIOD.

WE STILL HAVE THE FUNDS AVAILABLE IF SOMEONE DOES SHOW UP, WE HAVEN'T HAD AN APPLICATION.

RIGHT.

WE'VE HAD, HAVEN'T HAD THAT.

OKAY.

OKAY.

YES.

SO, SO WE DO HAVE A CHOTO RIGHT NOW WHO HAS MONEY FROM SOME OF THESE OTHER YEARS MM-HMM.

, UM, I BELIEVE 20 17, 20 20 18, JUST 2018 AT THIS POINT, THEY HAVE 200,000 THAT THEY HAVE TO MAKE A DECISION ON WHAT THAT PROJECT IS GOING TO BE AND HOW THEY'RE GOING TO EXPEND IT BY THE END OF THIS YEAR.

RIGHT.

YES.

SO COVID DID END UP CHANGING SOME THINGS.

RIGHT.

AND THERE WAS A LOT OF REALLOCATION, A LITTLE BIT OF FLEXIBILITY THAT CAME DURING THAT TIME PERIOD.

SO I THINK WE HAVE BEEN IN CONSTANT COMMUNICATION WITH HUD.

I MEAN, WE TALKED TO THEM PRETTY MUCH WEEKLY, MONTHLY.

UM, AND SO THEY'RE VERY AWARE OF ALL OF THE, YOU KNOW, WHAT WE'RE LOOKING AT THE, THE TYPES OF PROJECTS THAT WE ARE PROPOSING.

WE'VE HAD CONVERSATIONS WITH THEM.

AND SO IF WE HAD AHODA THAT CAME DURING THIS GRANT YEAR, UM, YOU KNOW, THAT WOULD BE WONDERFUL.

[00:30:01]

WE WOULD LOVE TO PARTNER WITH SOMEBODY.

OKAY.

SO THERE'S NOTHING ADDITIONAL THAT WE AS THE CITY COULD BE DOING TO INCENTIVIZE OR GET SOMEONE TO SOME EXTRA CHO FUNCTION AS AS A CHOTO OR YOU THINK IT'S RELATED MORE JUST CUZ AGAIN, WE'VE HAD, YOU KNOW, TWO OR THREE REALLY STRANGE YEARS STARTING WITH COVID AND THAT'S HAD A OBVIOUSLY A BIG EFFECT ON IT.

BUT I JUST WANT, THE OTHER THING IS, IS IF IT'S NOT REALLY BEING UTILIZED, DO WE NEED TO BE EXPENDING RESOURCES, TIME AND EFFORT ON THE CITY TO EVEN DO A PROGRAM LIKE THIS? WELL, I WOULD SAY THAT IT HAS BEEN A VERY SUCCESSFUL PROGRAM FOR A VERY LONG TIME.

I MEAN, THERE, IF YOU LOOK AT JUST THE HOUSING NUMBERS FROM PLANO HOUSING CORPORATION, EVEN FROM THE HOUSING CHANNEL, UM, YOU KNOW, HOME FUNDS ARE, ARE A VERY USEFUL TOOL THAT CAN BE USED IN A WAY THAT IS NOT AVAILABLE THROUGH OTHER TYPES OF FUNDING.

UM, YOU KNOW, THE, I KNOW THAT ON THE FEDERAL LEVEL THERE HAVE BEEN CONVERSATIONS ABOUT WHETHER OR NOT THERE STILL NEEDS TO BE THIS RESERVATION OF THE, THESE 15% CHOTO SET ASIDES, BUT THAT'S REALLY ON THE FEDERAL LEVEL.

THAT'S NOT SOMETHING THAT WE AS A MUNICIPALITY CAN MAKE A CHOICE ABOUT.

UM, BUT WHAT I WOULD SAY IS, IS THAT, UM, YOU KNOW, WE WANT TO PARTNER WITH A CHOTO THAT THERE'S, WE HAVE HAD VERY SUCCESS RELATIONSHIPS WITH AFFORDABLE HOUSING DEVELOPERS.

UM, WE HAVE APPROACHED SOME OF OUR EXISTING PARTNERS THAT ARE NOT CHODOS RIGHT NOW AND ASKED THEM IF THEY WOULD BE INTERESTED MM-HMM.

IN BECOMING A CHOTO, UM, SO THAT THEY WOULD HAVE ACCESS TO THIS PARTICULAR SET OF MONEY, WHICH, UM, RIGHT NOW IS LOOKS LIKE ABOUT 350,000.

IS THAT ABOUT RIGHT? ABOUT, AND YOU KNOW, THAT WOULD BE A VERY GOOD ASSISTANCE FOR A LOCAL NONPROFIT TO BE ABLE TO DO, UH, A PROJECT OR MULTIPLE PROJECTS REALLY WITH THAT.

SO, UM, YOU KNOW, WE'RE HOPING THAT WE WILL GET SOME APPLICATIONS.

WE HOPE THAT WE WILL HAVE ADDITIONAL CHODOS IF THERE'S INTEREST.

YEAH.

ONE FINAL QUESTION.

IT OUT OF THE, UH, THE PROJECTS, UH, THAT WE'VE SEEN, AND I GUESS WOULD BE ELIGIBLE WOULD SAY TAKING A DILAPIDATED SINGLE FAMILY HOME, WOULD THAT BE ELIGIBLE FOR FUNDING FOR CHODA TO GET INVOLVED WITH AND, AND REHAB? YES, SIR.

A A SINGLE FAMILY THAT NEEDED, THAT'S PRETTY MUCH ALL THEY DO.

THAT BEING A YEAH, I'M SURPRISED.

I, I MEAN, I HAVEN'T HEARD MORE ABOUT THEM DOING THAT.

IT ALWAYS SEEMS TO BE MORE OF A, YOU KNOW, DIFFERENT TYPE OF FACILITY.

SO THAT WOULD BE, UH, WE, WE'D BE GOOD IF WE COULD, UH, COULD, I DON'T KNOW SOMEHOW HOW YOU INCENTIVIZE, BUT GET MORE, YOU KNOW, OF THE FOLKS TO, AND THAT WAS ONE OF QUESTIONS THAT WE HAD FOR COUNSEL IS IF YOU WOULD LIKE US TO PRIORITIZE TRYING TO GET ADDITIONAL CHOS, WE CAN CERTAINLY, UM, DEVOTE SOME STAFF TIME TO TRYING TO, TO DO THAT IF THAT'S THE INTEREST OF THE COUNCIL.

OKAY.

BUT WE'VE HAD SEVERAL, WE ARE HAVING CONVERSATIONS.

I DON'T WANT YOU TO THINK WE HAVEN'T, UM, WE'VE BEEN APPROACHED BY PEOPLE AND WE'VE ALSO APPROACHED PEOPLE.

UM, AND WE'RE JUST HOPEFUL THAT WE'LL GET THE APPLICATIONS SUBMITTED AND, AND THAT WE CAN CERTIFY, UM, ADDITIONAL ORGANIZATIONS AS CHODOS FOR US.

SO YES.

OKAY.

GREAT.

THANKS LAURA.

APPRECIATE IT.

MM-HMM.

? SURE.

COUNCILMAN GRADY, THANK YOU VERY MUCH.

I JUST HAVE A COUPLE OF QUESTIONS AND THEN, UM, I'M GOING TO GIVE YOU AN OPINION.

UM, IF AHO BUYS A HOME FOR $120,000 AND REHABS IT FOR 60 AND THEN SELLS IT FOR 20,000 OR $200,000, UM, WHO GETS THE $20,000 GAIN ON SALE? SO ON OR SO ARE YOU TALKING ABOUT AN ORGANIZATION? YEAH, A CHOTO, A CHOTO, A CHOTO WOULD KEEP THAT.

ANYTHING THAT'S ABOVE THAT WOULD BE, UH, THE CHOTO WOULD KEEP.

OKAY.

SO THE CHOTO KEEPS IT.

UM, IS THERE ANY RESTRICTION ON USING, UM, HOME FUNDS IF WE HAVE A RESTRICTION ON HOME FUNDS OF SAY, $55,000 ON ANY INDIVIDUAL PROJECT? UM, IF A PROJECT IS $60,000, IS THAT BEYOND THE RESTRICTION THAT THAT COUNCIL SET? SO I THINK YOU'RE COMBINING, UM, AMOUNTS HERE.

SO, OKAY.

UM, THE 55,000 AMOUNT THAT WE HAVE IS THE LIMIT IS TYPICALLY WITH OUR, OUR CITY HOME REHAB.

UM, AND SO THAT IS ONE SET OF 55.

THE OTHER PART IS, IS CLOSING COSTS.

SO WE WILL ASSIST UP TO 55,000.

SO WE, THAT NUMBER EXISTS IN PLACES, BUT IN THE CHODOS, UM, USUALLY I THINK WE'RE GIVING, IT LOOKS LIKE ABOUT 90, A HUNDRED THOUSAND PER HOUSE IS USUALLY WHAT YOU'RE SEEING.

UM, AND THEN WHAT, UM, WHAT WE'RE SEEING IS, IS THAT CHODA OFTEN ARE NONPROFITS.

THEY MAY HAVE THEIR OWN FUNDING THAT THEY ARE RECYCLING FOR THEIR MISSION OF THEIR ORGANIZATION.

SO, IN OTHER WORDS, YOU KNOW, IF YOU ARE ABLE TO, ACTUALLY MOST OF THE TIME THEY'RE GETTING REAL CLOSE TO BREAKING EVEN, BUT YOU DON'T REALLY SEE PROFIT IN A NONPROFIT ORGANIZATION.

SO A CHOTO WOULD BE TYPICALLY TAKING WHATEVER THOSE FUNDS WERE AND THEN ROLLING THAT BACK INTO THEIR MISSION, WHICH IS THE DEVELOPMENT OF AFFORDABLE HOUSING.

MM-HMM.

OR POSSIBLY, YOU KNOW, OTHER ADMINISTRATIVE COSTS THAT WOULD GO ALONG WITH THAT.

OKAY.

UM, IF A CHOTO

[00:35:01]

BUYS A HOME FOR 200,000 MM-HMM.

, UM, AND THEY REHAB IT FOR 40 THOU WITH $40,000 AND THEY SELL IT FOR 300,000, UM, THERE'S A GAIN OF ABOUT 60,000 ON THE SALE.

UM, IS, CAN A BUYER OF THAT HOME THEN USE FIRST TIME HOME BUYER FUNDS OF $10,000? I'LL, SO I'M GONNA LET CHANT ANSWER THAT CUZ THAT'S GETTING INTO SORT OF SPECIFICS.

SO I'M GONNA LET HER DO THAT ONE.

SO IT DEPENDS, UM, WHAT HUD SAYS IS WE HAVE TO LOOK AT WHAT THE HOME BUYER NEEDS TO GET INTO THE HOUSE.

MM-HMM.

.

SO FOR INSTANCE, WE WILL NOT GIVE A HOME BUYER MORE IN FIRST TIME HOME BUYER ASSISTANCE, BE IT 10.

WE HAVE ONE THAT'S QUIRKY, IT WAS LIKE 8 89, 7 40, OR SOMETHING CRAZY LIKE THAT BECAUSE THAT'S ALL THEY NEEDED IN THE END.

WE CANNOT GIVE THEM MORE MONEY TO WHERE A HOME BUYER'S GONNA COME OUT WITH CASH OR ANYBODY'S GONNA COME OUT WITH, WITH CASH LIKE THAT.

SO IT'S ONLY WHAT THEY NEED.

WE HAVE TO GO THROUGH SUBSIDY LAYERING AND LOOK AT HOW MUCH HOME MONEY WAS SPENT IN THAT PROJECT, AND THEN HOW MUCH MONEY IS ACTUALLY NEEDED FOR THAT LOW INCOME HOME BUYER TO, TO BUY IT.

SO IT WON'T BE CONSISTENT.

WE CAN'T SAY 10,000 FOR YOU, 55,000 FOR YOU, 45 FOR YOU.

WE REALLY DO HAVE TO DO THE MATH TO SEE WHAT IN THE END, UM, IS NECESSARY FOR THEM TO CLOSE.

OKAY.

UM, ONE LAST EXAMPLE.

UM, SAY A HOUSE IS WORTH 80,000, BUT I BUY IT FOR 160,000 AND THEN I PUT $90,000 IN REHAB INTO IT AND SELL IT FOR 200,000.

I HAVE A NET LOSS OF $50,000.

WHO EATS THE $50,000 LOSS? ARE YOU TALKING ABOUT A CHOTO? A CHOTO.

CHOTO WOULD EAT THE LOSS.

OKAY.

UM, AND, AND I, I GUESS YOU WANNA LOOK AT THIS TOO ABOUT THE MISSION, RIGHT? YEAH.

I, I DON'T THINK THAT AS A NONPROFIT ORGANIZATION, THEY'RE REALLY ABOUT PROFIT.

THEY'RE ABOUT TRYING TO PROVIDE AFFORDABLE HOUSING.

SO THEY PROBABLY WOULD LOOK AT THAT AS BEING SOMETHING THAT WAS BEING ABLE TO MEET THE MISSION AND NOT REALLY AS A LOSS PER SE.

UM, BECAUSE AFFORDABLE HOUSING IS OFTEN MORE EXPENSIVE THAN THE COST FOR MARKETS.

THAT'S, THAT'S A LOT OF THE REASON WHY YOU HEAR SO MANY CHALLENGES WITH BEING ABLE TO PROVIDE AFFORDABLE HOUSING IS CONSTRUCTION COSTS ARE EXPENSIVE.

AND, UM, THAT'S REALLY WHERE THE CHODOS AND THE NONPROFIT ORGANIZATIONS ARE SUCH GREAT PARTNERS FOR US.

MM-HMM.

, UM, WE HAD A CHOTO, UM, WE FORMED THAT CHOTO, UM, IN THE CITY OF PLANO.

IT WAS THE, UM, CITY COUNCIL AND THE CITY STAFF THAT FORMED IT.

IT'S CALLED PLANO HOUSING CORPORATION.

WE FUNDED IT UP THROUGH 2015.

UM, WE ALSO PROVIDED IT ADMINISTRATIVE FUNDS SO THAT THEY COULD COVER IT, UH, ADMIN COSTS.

AND THEN THAT STOPPED AS, UM, UH, COUNCIL MEMBER WILLIAMS POINTED OUT THAT, UH, THAT ALL CAME TO A STOP, UM, IN 2015.

AND THERE'S A GAP OF TIME AND A NEW CHOTO COMES IN, UM, AND USES THE FUNDS IN 2017.

THE VERY LAST EXAMPLE THAT HE GAVE IS WHAT THEY, WHAT THEY USED THE FUNDS FOR.

UM, THEY BOUGHT A HOUSE FOR 160,000 THAT WAS WORTH 80.

THE, THE LAND ON THAT WAS PROBABLY WORTH, UM, 40.

HOUSE ITSELF WAS PROBABLY WORTH 40.

IT WAS IN REALLY BAD SHAPE.

THEY SPENT $90,000 BRIEF HAVING A $80,000 HOME, SOLD FOR 200 AND HAD A LOSS OF 50.

UM, THE, THE ISSUE WAS AN IMPACT ON THE COMMUNITY.

UM, AND THAT'S REALLY WHAT I SAW.

SO IN LOOKING AT THE IMPACT ON THE COMMUNITY, AND THIS WAS IN THE DOUGLAS COMMUNITY, UM, I STARTED RETHINKING HOW WE REALLY NEED TO DEAL WITH COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS HERE IN THE CITY.

WE HAD ONE, UM, IT WAS, UH, HAD A BOARD OF DIRECTORS THAT WERE PEOPLE THAT LIVED HERE IN THE COMMUNITY.

UH, IT HAD PEOPLE WORKING ON IT AND HAD PEOPLE ON THE BOARD THAT, UM, HAD BUSINESSES IN THIS COMMUNITY WERE BUILDERS OR, UM, WERE PEOPLE IN THIS COMMUNITY.

UM, SO I WENT OUT AND TOOK A LOOK AT HOUSING CHANNEL AND I REALIZED THAT UNDER HUD RULES, YOU CAN MAKE AN EXCEPTION AND HAVE A CHOTO FROM ANOTHER LOCATION COME HERE.

UM, BUT LOOKING AT THEIR CHARTER AND LOOKING AT THEIR NINE 90, UM, THEY ARE CHARTERED FOR ARLINGTON, FORT WORTH AND TARRANT COUNTY.

UM, THERE ISN'T REALLY ANY LINEAGE BETWEEN HOUSING CHANNEL AND PLANO OTHER THAN WE ALLOWED THEM TO COME IN, TAKE $187,000 AND DO SOME WORK WITHIN THE CITY OF PLANO.

AND, AND, AND AGAIN, IN MY OPINION, UM, THE ISSUE WOULD'VE BEEN

[00:40:01]

PROBABLY EASIER HAD WE RETURNED THE MONEY TO HUD THAN WHAT WE DID IN THE DOUGLAS COMMUNITY.

NOW, UM, SO MY FEELING COUNSEL, IS IF WE'RE GOING TO HAVE A CHOTO IN HERE IN THE CITY, IT NEEDS TO BE A CHOTO THAT IS ALIGNED WITH THE CITY OF PLANO.

IT NEEDS TO HAVE A BOARD OF DIRECTORS THAT ONE THIRD OF IT.

UM, THE MEMBERS ARE EITHER FROM A LOW INCOME AREA WITHIN THE CITY OF PLANO OR ARE LOW INCOME THEMSELVES.

UM, AND SO I I TOOK A LOOK AT TITLE 24, UM, OF THE CODE OF FEDERAL REGULATIONS PART 92 THAT DEFINES A CHOTO.

AND HERE'S WHAT THE THINGS I THINK THAT A CHOTO NEEDS.

UM, A CHOTO NEEDS A CLEARLY DEFINED GEOGRAPHIC LOCATION, AND I DON'T SEE THAT ARLINGTON AND FORT WORTH AND TARRANT COUNTY, UM, REALLY DEFINING PLANO.

UH, I REALLY DON'T, UM, A CHOTO IS INTENDED TO RESPOND TO, AND I'M, I, AND I EMPHASIZE THIS, A PARTICULAR COMMUNITY'S NEEDS, THAT'S A QUOTE RIGHT OUT OF THE GUIDE FROM HUD, WHICH IS A CHOTO IS INTENDED TO RESPOND TO A PARTICULAR COMMUNITY'S NEEDS.

AND THAT PARTICULAR COMMUNITY TO ME IS PLANO.

IT'S NOT ARLINGTON, IT'S NOT FORT WORTH, IT'S NOT TARRAN COUNTY.

I'M SURE THEY DO VERY GOOD WORK OVER THERE.

I'M SURE THEY DO.

UM, BECAUSE THEY'RE A, THEY'RE GENERATING 15 AND A HALF MILLION DOLLARS IN GROSS RECEIPTS IN THE PAST YEAR, AND THEY HAVE ASSETS OF $32 MILLION.

AND I WISH THAT ART CHOTO HAD $32 MILLION IN ASSETS.

I WISH ART CHOTO WAS GENERATING FOR OUR COMMUNITY $15 MILLION IN REVENUE.

UM, AND I THINK THAT ALTHOUGH IT'S NOT AS LARGE AS TARRANT COUNTY, IT'S NOT AS LARGE AS FORT WORTH.

IT'S NOT AS, UH, IT'S SIMILAR TO THE CITY OF ARLINGTON.

UM, WE COULD DO THAT, UM, AND WE COULD BE GENERATING THOSE DOLLARS THAT ARE THE GAIN, UM, TO REPL AMPLIFY WITHIN OUR OWN COMMUNITY, RATHER THAN HAVING IT TRANSFERRED OVER TO TARRANT COUNTY.

THE STRUCTURE OF THE BOARD OF DIRECTORS OF CHOTO IS TO BE VIEWED THE MAIN INDICATOR OF COMMUNITY CONTROL OVER THE CHOTO, AGAIN, A QUOTE RIGHT OUT OF THE HUD BOOK.

UM, IF THEIR BOARD OF DIRECTORS DOESN'T HAVE A SINGLE MEMBER ON IT, THAT IS FROM PLANO, WE HAVE NO INDICATOR OF COMMUNITY CONTROL OVER THE CHOTO HERE.

JUST DON'T.

A MINIMUM OF ONE THIRD OF THE BOARD MUST, AND I'LL EMPHASIZE THE WORD MUST CONSIST OF REPRESENTATIVES IN THE LOW INCOME COMMUNITY.

AND I'LL EMPHASIZE AGAIN, THE WORD, THE, IT DOESN'T SAY A, IT SAYS THE WORD.

THE, UM, AHODA MUST ALSO DEMONSTRATE THAT IT HAS AT LEAST ONE YEAR OF EXPERIENCE SERVICING A COMMUNITY, SERVICING THE COMMUNITY WHERE IT INTENDS TO DEVELOP THE HOME ASSISTED HOUSING.

CH HOUSING CHANNEL REALLY DIDN'T HAVE ONE YEAR'S WORTH OF EXPERIENCE IN OUR COMMUNITY WHEN THEY CAME HERE TO DO THE WORK THAT THEY DID, UM, WORK THAT AGAIN, I REALLY WASN'T SATISFIED WITH.

SO, UM, IN ALL OF THAT, IF I, I'M NOT GONNA GO THROUGH ALL THE POINTS SO THAT I BELABOR THIS ANY FURTHER.

MY POINT IS REALLY THIS, WE NEED, AGAIN, LIKE WE USED TO HAVE HERE A CHOTO THAT IS DEDICATED TO PLANO, THAT'S BOOTS ON THE GROUND HERE IN PLANO THAT HAS A BOARD OF DIRECTORS THAT REPRESENTS OUR POPULATION HERE, OUR LOW INCOME COMMUNITIES HERE, OUR NEEDS HERE.

WE NEED A BOARD OF DIRECTORS THAT HAS A BUILDER ON IT THAT IS FAMILIAR WITH BUILDING IN THE CITY OF PLANO, NOT ARLINGTON, NOT FORT WORTH, NOT TARRANT COUNTY, NOT WACO, NOT SAN ANTONIO HERE.

UM, AND SO MY FEELING IS ONE OF TWO.

WE CAN EITHER HELP DEVELOP A, UH, A CHOTO AGAIN THAT REPRESENTS THE CITY OF PLANO.

WE CAN GO TO EXISTING CHODOS THAT USED TO REPRESENT, UM, OR WE JUST NEED TO TAKE THE MONEY AND REVERT IT BACK TO HOUSING AND URBAN DEVELOPMENT UNTIL SUCH TIME THAT WE HAVE A CHOTO THAT REPRESENTS THE CITY.

AND, AND THAT REALLY IS THE MAJOR POINT THAT I HAVE, IS THAT CHOTO SHOULD REALLY REPRESENT THE CITY OF PLANO IN ALL OF ITS FACETS BY THE GUIDELINES OF WHAT HUD BASICALLY SAYS.

AND AS I MENTIONED MANY, MANY TIMES, IT SAYS IN THERE THAT IT REPRESENTS THE LOW INCOME COMMUNITY.

AND IT'S NOT JUST ONCE, IT'S MULTIPLE TIMES IN THE DOCUMENT THAT IT SAYS THAT.

AND IT'S NOT A COMMUNITY, IT IS THE COMMUNITY.

[00:45:01]

SO, UM, MY RECOMMENDATION IS THAT WE EITHER HAVE A CHOTO THAT REALLY REPRESENTS PLANO, OR WE DON'T USE THE CHOTO FUNDS, AND WE EITHER RETURN THEM OR WE FIND ANOTHER WAY TO DISTRIBUTE THOSE FUNDS.

BUT HAVING THE CHOROS FROM SOMEPLACE ELSE DOESN'T MAKE ANY SENSE TO ME.

THANK YOU.

WELL, MAYOR AND COUNCIL REAL QUICK, UH, COUNCILMAN GRADY AND I HAVE, HAVE SPENT SOME TIME IN ON THIS TOPIC DISCUSSING, AND, AND THIS HAS BEEN, UM, SOMETHING THAT'S, THAT'S COME UP RECENTLY IS THE, THE DISCUSSION ABOUT GROWING, UM, A CHOTO FROM THE THE PLANO COMMUNITY.

I FEEL LIKE THERE'S, THERE'S SOME CONVERSATIONS THAT STAFF AND I ARE GONNA HAVE WITH OUR NONPROFITS OUT IN THE COMMUNITY, UM, HERE OVER THE NEXT MONTH.

UH, UH, IT'S BEEN ONE OF THE FOCUSES THAT WE'VE HAD GOING INTO 23 IS, UM, REESTABLISHING RELATIONSHIPS AND DOING OUTREACH WITH, UH, A LOT OF OUR, UM, NONPROFITS AND KEY PARTNERS AND THINGS LIKE THAT.

AND I FEEL LIKE THIS IS A, A GOOD OPPORTUNITY FOR US TO HAVE SOME OF THOSE DISCUSSIONS WITH THE, THE NONPROFITS ABOUT THE ABILITY TO, UM, GROW THAT RELATIONSHIP AND GROW, UH, THE, THE ABILITY TO HAVE A, A LOCAL CHOTO.

SO, UH, WHAT I WOULD PROPOSE IS THAT WE, WE, UM, UH, DIRECT STAFF AND MYSELF TO GO HAVE SOME OF THOSE CONVERSATIONS AND COME BACK, UH, ABOUT THE ABILITY FOR SOME OF THOSE, UH, FOLKS TO EITHER TAKE ON THAT ROLE, GROW INTO THAT ROLE, WHATEVER THAT MIGHT BE, AND THEN REPORT BACK TO COUNCIL TO, TO LET Y'ALL KNOW THE, THE INTEREST AND POSSIBILITY BECAUSE, UM, YOU KNOW, I, I MEAN THIS WITH SINCERITY, THIS DOES IMPORTANT WORK IN OUR COMMUNITY.

THERE ARE FOLKS THAT NEED THESE FUNDS IN OUR COMMUNITY.

UM, IT IS NEVER, UH, MY GOAL TO RETURN A SINGLE DIME THAT COULD BE UTILIZED FROM THE FEDERAL GOVERNMENT, UH, BACK TO THE FEDERAL GOVERNMENT.

I WANT TO USE IT HERE.

I DON'T EVER WANT TO HAVE TO REPAY IT EITHER.

I WANT IT TO GO TO USE AS FAST AS POSSIBLE.

UM, BUT WHAT WE NEED TO DO IS WE NEED TO SPEND SOME TIME WITH OUR NONPROFIT PARTNERS, WITH SOME OF THE CONSTRUCTION FOLKS.

AND THAT CAN BE, YOU KNOW, UH, PREVIOUS CHODOS CURRENT PEOPLE THAT HAVE THE, THE POTENTIAL FOR CHODOS, UM, AND ALL THAT AND HAVE SOME OF THOSE CONVERSATIONS.

AND, AND I, IF COUNCIL GIVES THAT DIRECTION, STAFF AND I WILL GO TO WORK AND, UH, WE WILL COME BACK AND REPORT ONCE WE'VE HAD THE OPPORTUNITY TO HAVE SOME OF THOSE CONVERSATIONS.

OKAY.

? I, I, I DID THANK, THANK YOU, MAYOR.

UH, SO, UH, JUST A QUICK QUESTION.

UH, GOING OFF OF, UH, THE DISCUSSION THAT COUNCIL MEMBER GRADY BROUGHT UP REGARDING THE, UH, THE, THE HOME REHABILITATION IN THE DOUGLAS COMMUNITY, UH, I ALSO, UH, HAVE RECEIVED FEEDBACK FROM RESIDENTS OF THE DOUGLAS COMMUNITY WHO FELT THAT, YOU KNOW, WHILE THAT THAT ONE HOME MAY HAVE GOTTEN FIXED UP, THE IMPACT ON PROPERTY VALUES AND THUS TAXES WAS NOT, UH, NECESSARILY A POSITIVE, UH, FOR THE COMMUNITY AS A WHOLE.

UM, THAT BROUGHT UP, UH, UH, A QUESTION ABOUT WHAT LEVEL OF CONTROL WE HAVE OVER THE PROJECT THAT THE CHODO DOES.

DO WE JUST PICK A CHODO AND, AND, AND ALLOCATE THOSE FUNDS AND, AND THEN THEY DO SOMETHING THAT MEETS THE CRITERIA, OR THEY COME TO US WITH A SPECIFIC PROJECT AND SAY, THIS YEAR WE'RE GOING TO DO THIS, AND THEN WE SAY, OKAY, THEN WE'LL ALLOCATE THESE FUNDS TO YOU.

YOU WANT ME TO TRY? I'LL, I'LL, I'LL TAKE A SHOT AT IT.

LET LET JEANETTE FILL IT IN.

UM, SO WE ARE ONLY AWARE OF ONE, UM, ONE PROJECT THAT WAS COMPLETED BY OUR CURRENT CHOTO, THE HOUSING CHANNEL THAT WAS IN THE DOUGLAS COMMUNITY.

I WOULD LIKE TO MAKE SURE THAT EVERYONE UNDERSTANDS THAT THE DOUGLASS COMMUNITY IS NOT THE ONLY PLACE THAT A CHOTO CAN WORK HERE IN THE CITY OF PLANO.

MM-HMM.

, UM, THERE IS ONE PROPERTY THAT WAS COMPLETED THERE.

UM, THE, WE HAVE REVIEWED, AND IF THERE IS INTEREST FROM THE COUNCIL, WE CAN CERTAINLY PROVIDE THIS INFORMATION, WHAT THAT PROPERTY WAS PURCHASED FOR, HOW MUCH MONEY WAS PUT INTO IT FROM THE HOME FUNDS, WHAT THEY SOLD IT FOR, AND EVEN WHAT THE MARKET VALUES WERE AT THE TIME THAT THE HOUSE WAS SOLD.

WE CAN LET YOU KNOW WHAT THE PRICE PER SQUARE FOOT WAS IN COMPARISON TO OTHER MARKET RATE HOMES.

AND I THINK YOU'LL FIND IT VERY ENLIGHTENING.

SO IF THAT'S SOMETHING THAT THE COUNCIL WOULD LIKE TO SEE, WE WOULD BE HAPPY TO SHARE THAT, BECAUSE I THINK IT WOULD BE HELPFUL TO UNDERSTAND.

UM, THERE IS ALSO ANOTHER HOUSE THAT I THINK HAS BEEN CONFUSED AT TIMES.

THAT WAS A PROPERTY THAT WAS COMPLETED BY THE PLANO HOUSING AUTHORITY AND THE CITY OF PLANO THAT IS ALSO WITHIN THE DOUGLAS COMMUNITY.

AND THERE WERE ALSO HOME FUNDS USED.

IT WAS A, UH, DEMOLITION OF A HOUSE AND A RECONSTRUCTION.

SO I JUST WANNA MAKE SURE THAT EVERYBODY HAS THE SAME INFORMATION SO THAT YOU UNDERSTAND WHAT WAS PUT INTO THOSE HOUSES AND HOW THAT WAS SET UP.

OKAY.

WELL, THANK, THANK YOU SO MUCH FOR THAT INFORMATION.

I REALLY APPRECIATE THAT.

AND THAT WOULD BE GOOD SURE, ABSOLUTELY.

TO LEARN MORE ABOUT, ABOUT THIS SPECIFIC ISSUE.

ABSOLUTELY.

BUT, UH, I, I WAS, THAT WAS MORE OF JUST A, AND I APOLOGIZE FOR THE

[00:50:01]

LENGTHY LEAD IN, BUT THAT WAS MORE OF A LEAD IN TO THE QUESTION ABOUT HOW MUCH CONTROL DO WE HAVE OVER WHAT A CHOTO DOES.

SURE.

IF WE SAY WE'RE GOING TO ALLOCATE FUNDS TO YOU, DO, DO, DO THEY COME TO US AND SAY, WE'RE GONNA DO THIS EXACT THING? SO I'M GONNA LET ETTE ANSWERED THAT ONE SPECIFICALLY, BUT TYPICALLY COUNCIL DOES NOT SEE THE INDIVIDUAL PROJECTS.

OKAY.

SO I'LL LET HER EXPLAIN.

SO, THROUGH THE CONSOLIDATED GRANT PROCESS, UM, A NONPROFIT DEVELOPER THAT'S GONNA DEVELOP AFFORDABLE HOUSING WILL COME SUBMIT AN APPLICATION, AND THERE'S WHAT HUD CALLS AND WHAT WE CALL A FUNDING AGREEMENT.

SO FOR INSTANCE, UM, NONPROFIT DEVELOPER CAN SAY, HEY, YOU KNOW, LOOK, YOU ALL AWARD THEM, LET'S SAY $160,000, RIGHT? IT'S APPROVED IN THE ACTION PLAN.

THEY GET IT AT THAT TIME OF THE ALLOCATION THAT YOU ALL HAVE ALLOWED THEM TO HAVE.

THEY MAY NOT HAVE A PROJECT YET.

SO WE DO A FUNDING AGREEMENT.

HOWEVER, WHEN THEY FIND PROJECTS, THEN WE DO SITE SPECIFIC AGREEMENTS WITH THEM WHERE WE ACTUALLY LOOK AT, THEY TELL US HOW MUCH IT'S GONNA COST, WHAT THEY'RE DOING, HOW THEY'RE GONNA SELL IT.

WE LOOK AT EVERYTHING HERE BECAUSE HUD MAKES US LOOK AT HOW MUCH HOME MONEY IS TOO MUCH MONEY, HOW MUCH HOME MONEY IS ENOUGH.

AND THEY EVEN TELL US WHAT THEY'RE PROPOSING TO SELL IT FOR.

THEY TELL US THAT IN ADVANCE SO THAT WE UNDERSTAND THAT IT'S USING THAT INFORMATION THAT WE PUT IN THE BUDGET FOR A SITE SPECIFIC AGREEMENT WITH THEM.

UM, AND THEN WE SIGN IT AND THEN WE GO, SO THERE'S A FUNDING AGREEMENT THAT GOES ALONG WITH THE ACTION PLAN, UM, OR, YEAH, THAT GOES ALONG WITH THE ACTION PLAN.

AND THEN ONCE THEY FIND PROJECTS, IT'S A SITE SPECIFIC AGREEMENT FOR EACH PROJECT.

SO WE DO HAVE A HAND IN SAYING, OKAY, LET'S LOOK AT THIS.

THIS IS TOO HIGH, OR WE'RE NOT ABLE TO GIVE YOU THIS AMOUNT OF MONEY.

ARE YOU WILLING TO EAT THE COST? OR, WE'RE NOT GONNA SIGN THIS SITE SPECIFIC CONTRACT WITH THEM.

UM, BECAUSE IT HAS TO BE WHAT HUD DECIDES IS REASONABLE.

UM, AND WE HAVE TO BE ABLE TO PROVE TO PROVE THAT TO THEM WHEN THEY COME AND AUDIT US.

OKAY.

WELL, TH THANK YOU THAT, THAT'S GREAT INFORMATION.

THANK YOU SO MUCH FOR THAT INFORMATION.

SO THEN JUST I GUESS A FOLLOW UP QUESTION, UH, BECAUSE YOU KNOW, AND, AND, AND, AND, YOU KNOW, I, I, I, UH, YOU KNOW, WOULD LOVE TO LEARN MORE ABOUT THE DETAILS, BUT JUST, YOU KNOW, HAVING RECEIVED, UH, FEEDBACK ON, YOU KNOW, WHAT, UH, WHAT I BELIEVE WAS, WAS A CHOTO PROJECT, OR IT COULD HAVE BEEN THE OTHER PROJECT YOU WERE MENTIONING, LORI MM-HMM.

.

I'M WONDERING WHEN THAT SITE SPECIFIC AGREEMENT IS SIGNED, UH, ARE AREA RESIDENTS AWARE OF THAT? IS THERE AN OPPORTUNITY FOR FEEDBACK TO SAY THAT THIS IS THE TYPE OF, YOU KNOW, OF, OF PROJECT THAT WOULD BE HELPFUL IN OUR COMMUNITY? THIS, THIS TYPE OF PROJECT MIGHT NOT BE AS HELPFUL? IS THERE, IS THERE FEEDBACK, UH, DURING THAT PROCESS? SO THE ONLY FEEDBACK THAT WE RECEIVE TYPICALLY IS DURING THAT PUBLIC HEARING WHEN WE HAVE THE ACTION PLAN.

SO THE ACTION PLAN WILL DETAIL EXACTLY WHAT WE'RE DOING.

IF WE'RE GONNA ACQUIRE REHAB AND REHABILITATE A HOME, IT SAYS IT THERE.

AND SO THAT BEING SAID, WHEN A NONPROFIT EITHER PLANNED, EITHER WHEN IT WAS PLANO HOUSING CORPORATION, HOUSING CHANNEL, HABITAT FOR HUMANITY, CHRIST, UNITED METHODIST, ALL OF THOSE REBUILDING TOGETHER, ALL OF THOSE NONPROFITS HAVE DONE SOME FORM OF REHAB OR NEW CONSTRUCTION OR COMBINATION OF THE TWO HERE IN OUR CITY.

IT NEVER COMES BACK AGAIN TO, TO ASK FOR ANOTHER PUBLIC HEARING BECAUSE THEY ARE DOING THE ACTIVITIES THAT THE PROPERTY IS ZONED FOR.

MM-HMM.

.

SO THEY, THE, THE PUBLIC INPUT WITH REGARDS TO WHETHER THAT ACTIVITY IS SOMETHING THAT THE NEIGHBORHOOD WANTS TO SEE IS SOMETHING THAT GOES ON WHEN WE HAVE THE PUBLIC HEARINGS IN THE BEGINNING.

AND THAT'S CERTAINLY, YES, SIR.

REAL QUICK, BUT THAT'S THE, IS THAT THE MINIMUM THAT THE FEDERAL GOVERNMENT REQUIRES? COULD, COULD THE CITY GO ABOVE AND BEYOND TO NOTIFY THE NEIGHBORHOOD? DEFINITELY.

WE COULD GO ABOVE AND BEYOND.

WELL, CITY MANAGER, I, I WAS JUST GOING TO, TO SUGGEST THAT, AND I, I, I APPRECIATE, YOU KNOW, UH, UM, JEANETTE AND LORI AND, AND MARK ALL, ALL OF YOUR FEEDBACK, IF I MAY, UH, AND, AND THIS MAY HELP YOU.

YEAH.

UM, RIGHT OUT OF THE, UH, HOUSING AND URBAN DEVELOPMENT, UM, GUIDELINES, THESE TWO SENTENCES EXIST.

BOTH OF 'EM ARE QUOTES.

THE CHOTO MUST ALSO PROVIDE A FORMAL PROCESS FOR LOW INCOME PROGRAM BENEFICIARIES TO ADVISE THE CHOTO ON DESIGN LOCATION OF SITES, DEVELOPMENT AND MANAGEMENT OF AFFORDABLE HOUSING.

THIS REQUIREMENT IS ESPECIALLY IMPORTANT FOR CTO'S SERVING A LARGE GEOGRAPHICAL AREA WHERE IT MAY NOT BE POSSIBLE FOR A CHOTO TO HAVE LOW INCOME BOARD, UH, BOARD REPRESENTATION FROM EVERY NEIGHBORHOOD IN WHICH THE CHOTO WILL DEVELOP OWNER SPONSORSHIP HOUSING.

AND I READ THAT AS SAYING THEY NEED TO REACH OUT INTO THE COM, THE CHOTO NEEDS TO REACH OUT INTO THE COMMUNITY AND LET EVERYBODY KNOW WHAT THEY'RE DOING, AND HAVE A CONDUIT SO THAT THE CITIZENS CAN COMMUNICATE BACK.

AND, AND I'LL JUST, YOU KNOW, CONCLUDE MY REMARKS BY SAYING THAT I, I, I THINK, YOU KNOW, EVEN IF THE, EVEN IF WE'RE NOT REQUIRED TO DO IT, YOU KNOW, WITHOUT EVEN, UH, GETTING INTO, YOU KNOW, THE LANGUAGE THAT COUNCIL MEMBER GRADY JUST

[00:55:01]

READ THOUGH, YOU KNOW, IT, IT SOUNDS LIKE IT CERTAINLY MAKES IT ADVISABLE TO GET AS MUCH FEEDBACK AS WE CAN.

I THINK IT'S, YOU KNOW, WHETHER IT'S ZONING OR EXPENDITURES OR ANYTHING, I, I THINK IT'S ALWAYS, YOU KNOW, WONDERFUL TO GET AS MUCH FEEDBACK FROM OUR COMMUNITY AS WE CAN.

AND SO THANK YOU FOR YOUR OPENNESS TO THAT COUNCIL MEMBER, HOMER.

THANK YOU, MAYOR.

IT SOUNDS LIKE, UH, OUR CITY MANAGER UNDERSTANDS WHAT WE'D LIKE TO SEE, SO I APPRECIATE YOU, UH, ARTICULATING DIRECTION.

I DEFINITELY AGREE THAT WE NEED OUR CHODOS TO BE LOCAL AND INVESTED IN OUR COMMUNITY.

ONE OF THE COMMENTS ON THE, WHAT YOU NEXT STEPS HERE, IT SAYS, ARE THERE SPECIFIC GOALS FOR CHOTO ACTIVITIES THAT THE CITY COUNCIL WOULD LIKE TO PRIORITIZE? AND I KIND OF HAVE A HARD TIME WRAPPING MY HEAD AROUND HOW GIVEN OUR MARKET RATES RIGHT NOW, HOW THE CHODOS CAN REALLY REHAB AND PURCHASE HOMES.

UM, AND BY DOING SO, ARE, YOU KNOW, ARE WE ARTIFICIALLY INFLATING PRICES? THINGS LIKE THAT.

SO MY QUESTION IS, OR MY DIRECTION WOULD BE IF THIS IS ALLOWED, ASSUMING WE ARE ABLE TO CREATE A LOCAL SHOW TO INVESTED IN OUR COMMUNITY AS OUR HOMES ARE AGING AND THE INFRASTRUCTURE'S AGING.

I'M HEARING A LOT OF PEOPLE WHO MAYBE, YOU KNOW, OWN THEIR HOMES, BUT THEY'RE ON A FIXED INCOME AND THEY'RE NEEDING TO REPLACE THEIR CAST IRON PIPES.

IS THAT SOMETHING MAYBE A CHOTO COULD HELP WITH? UH, SO I THINK THAT CAN BE PART OF A PROJECT.

CORRECT.

IT CAN, CAN BE PART OF A PROJECT.

A CHOTO CAN REHAB THE HOMES, BUT WHEN THEY'RE REHABBING A HOME, IT HAS TO BE, BECAUSE IT'S HOME MONEY, EVERYTHING HAS TO BE BROUGHT UP TO CODE.

SO LET'S SAY THAT THEY HAVE THE CAST IRON PIPES AND THEY HAVE AN AC UNIT THAT IS JUST FINE, BUT IT'S OLD AND IT'S NOT UP TO CODE.

THAT HAS TO BE BROUGHT UP TO CODE.

OKAY.

AND IT DOESN'T HAVE TO BE FOR A FIRST TIME HOME BUYER? NO, NO MA'AM.

OKAY.

JUST INELIGIBLE INCOME ELIGIBLE.

OKAY.

SO THAT WOULD JUST BE MY, MY INPUT WOULD BE, I'D LIKE TO SEE MAYBE PRIORITIZING LOOKING FOR, BECAUSE I'M HEARING FROM PEOPLE THAT ARE SAYING, I, I OWN MY HOME.

I'M ON A FIXED INCOME AND IT'S GONNA BE $50,000 TO REPLACE MY HUSBAND.

RIGHT.

I THINK PART OF THE CHALLENGE IS, IS THAT WE DO CURRENTLY DO THOSE TYPES OF PROJECTS.

IT'S, IT'S UNDER OUR REHAB PROGRAM.

UM, A LOT OF TIMES WHAT ENDS UP HAPPENING IS THAT PEOPLE WITH FIXED INCOMES ALSO HAVE ASSETS, AND THAT WILL OFTEN KNOCK THEM OUT OF BEING ABLE TO QUALIFY FOR THE LOW TO MODERATE INCOME PROPERTY OWNERS.

AND SO, YOU KNOW, REALLY THIS GETS INTO SOME OF THAT DISCUSSION WE'VE HAD WITH COUNCIL IN THE PAST ABOUT HOW DO WE DEAL WITH PEOPLE THAT DON'T MEET THAT LOW TO MODERATE INCOME THRESHOLD, BUT REALLY ARE OUR FIXED INCOME AND, AND MAYBE CASH STRAPPED, I THINK IS ALL THE COMBO THAT THAT ENDS UP HAPPENING THERE.

UM, AND SO THAT MAY BE SOMETHING THAT WE HAVE AS FURTHER DISCUSSIONS WITH OUR HOUSING, BUT WE'LL NEED TO FALL INTO THAT LOW TO MODERATE INCOME LEVEL.

AND, AND THAT INCLUDES ASSETS.

WE HAVE TO LOOK AT EVERYTHING, UM, WHEN WE'RE LOOKING AT THESE APPLICATIONS THAT ARE COMING THROUGH.

AND THAT'S REGARDLESS OF WHETHER OR NOT IT'S A CITY PROGRAM OR A CHOTO OR ANY OTHER NONPROFIT THAT IS USING OUR FUNDS, WE, WE NEED TO MAKE SURE THAT WE'RE MEETING THE GUIDELINES FOR OUR LOW TO MODERATE INCOME IN THIS AREA.

I APPRECIATE YOU EXPLAINING THAT.

THAT'S MAYBE FEATURED OUT OR USING THE GREAT REBATE UPDATE FOR THAT PURPOSE.

WE DO IT.

UH, JUST SO YOU KNOW, WE DO DO THAT RIGHT NOW.

SO YES, THAT IS, THAT IS USED THAT WAY.

YES.

THAT'S GOOD TO KNOW.

THANK YOU SO MUCH.

MM-HMM.

, RICK, THANK YOU.

UH, JUST QUICK, QUICK QUESTION.

I, I'VE HEARD A COUPLE THINGS HERE THAT I STRONGLY AGREE WITH WHAT COUNCILMAN GRAY SAID, AND, UH, COUNCIL MEMBER HOMER SAID, I TOO BELIEVE WE NEED TO KEEP THIS LOCAL.

I MEAN, THAT'S, THAT'S WHAT IT'S ABOUT.

THE OTHER THING THAT CITY MANAGER SAID THAT I STRONGLY AGREE WITH IS WHEN, WHEN WE GET OUR MONEY BACK, SOME PORTION OF IT FROM THE