##VIDEO ID:wvpmVy96TRI## , UH UH .  UH .  GOOD EVENING. I WOULD LIKE TO CALL. THIS IS NOT.  OH, I'M TRY THIS AGAIN.  I WOULD LIKE TO CALL TO ORDER THE TUESDAY JANUARY 14TH,  2025. AH, A BOARD MEETING.  FIRST ITEM IS APPROVAL OF THE AGENDA. ARE THERE ANY EDITS OR CHANGES IF NONE? MAY I HAVE THE MOTION TO APPROVE THE AGENDA SOMEWHAT MOTION MADE BY LUA SECOND SECOND BY DOUBLING OR ALL IN FAVOR OF OPPOSED MOTION PASSES SIX ZERO RIGHT. NEXT ITEM ON THE AGENDA IS THE APPROVAL OF MINUTES.  SO WE HAVE THE APPROVAL OF THE DECEMBER 10TH CITY COUNCIL PORT AUTHORITY HRA CONCURRENT MEETING MINUTES ARE THERE ANY EDITS OR CHANGES?  IF THERE ARE NONE MAY I HAVE A MOTION TO APPROVE THE DECEMBER 10TH CITY COUNCIL PART.  HRA CONCURRENT BOARD MEETING MINUTES SO MOVED SO MOTION MADE BY S.A. SECOND BY. ANY DISCUSSION?  ALL IN FAVOR. OH OKAY.  MOTION PASSES SIX NOTHING. THE NEXT ITEM IS THE APPROVAL OF THE DECEMBER 17TH HRA AND PLANNING CONCURRENT MEETING MINUTES. ARE THERE ANY EDITS OR CHANGES ? IF NOT CAN HAVE A MOTION TO APPROVE THE DECEMBER 17TH HRA AND PLANNING MEETING MINUTES.  MOVE TO APPROVE SECOND MOTION MADE BY WOOTEN IN SECOND BY DOUBLING OR ANY DISCUSSION.  ALL IN FAVOR I MOTION SIX ZERO FOR CRUISING RIGHT ON.  OKAY NEXT ITEM IS ORGANIZATIONAL BUSINESS WHICH I BELIEVE THERE WAS NONE SO WE WILL MOVE ON TO THE NEXT ITEM OF NEW BUSINESS.  SO THE FIRST ITEM IS PROPOSED CHANGES TO THE RENTAL HOMES FOR FUTURE HOMEBUYERS PROGRAM . MAY I HAVE THE STAFF REPORT?  GOOD EVENING. CHAIR AND COMMISSIONERS ANNA SALVADOR ADMINISTRATOR I JUST WANT YOU GUYS CAN HEAR ME RIGHT. OKAY. THE ITEM BEFORE YOU THIS EVENING OUR PROPOSED CHANGES TO THE RENTAL HOMES FOR FUTURE HOMEBUYERS PROGRAM.  THE PURPOSE OF THE RENTAL HOMES FOR FUTURE HOMEBUYERS PROGRAM IS TO OFFER AFFORDABLE RENTS TO SUPPORT A PATHWAY TO HOMEOWNERSHIP FOR INCOME QUALIFYING HOUSEHOLDS. THE PROGRAM ANNUAL COACHING AND EDUCATION ON HOMEOWNERSHIP GOALS AND GENERALLY RUNS FOR ABOUT FIVE YEARS FOR EACH HOUSEHOLD. THE GOALS OF THE AMENDMENTS BEFORE YOU TONIGHT ARE FIRST AND FOREMOST TO MAKE SURE THAT WE CAN CONTINUE TO PROVIDE SAFE AND QUALITY HOUSING.  AS YOU KNOW, IN 2024 THERE WAS A SIGNIFICANT CAPITAL IMPROVEMENTS THAT WERE COMPLETED AND AS PART OF THAT WORK WE IDENTIFIED THAT RENTS NEEDED TO INCREASE TO GUARANTEE WE COULD CONTINUE TO MAINTAIN SAFE AND QUALITY HOUSING.  AND SO THAT IS KIND OF THE IMPETUS FOR THE AMENDMENTS YOU TONIGHT. ONE THING THAT STAFFERS CONTINUE TO BALANCE WITH THIS WORK IS TO MAKE SURE THAT ANY RENT INCREASES AND ANY AMENDMENTS TO THE PROGRAM WOULD CONTINUE TO SUPPORT THE UNDERLYING PROGRAMMATIC GOALS OF HOMEOWNERSHIP READINESS AND AFFORDABILITY.  AND ONE WAY WE WERE THROUGH THIS IS HOW DO WE MAKE SURE THAT INCOME LIMITS AND RENT LIMITS ARE SET IN WAYS THAT WOULD ALLOW FOR A HOUSEHOLD TO CONTINUE TO PAY INTO THAT ESCROW ESCROW ACCOUNT WHICH IS WHERE THEY THAT DOWN PAYMENT MONEY FROM THROUGH THE FIVE YEAR PROGRAM.  ADDITIONALLY, THESE AMENDMENTS KIND OF ENHANCE OR OUTLINE A CLEAR PROCESS FOR SETTING NEW RENTS SO.  THEY'RE ENHANCING EXISTING PROGRAM REQUIREMENTS.  HOW WE SET RENTS FOR THE PROGRAM SO WHERE WE WHERE DOES THIS PROGRAM SIT ALONG THE HOUSING CONTINUUM THE HRA PARTICIPATES IN OR PROVIDES PROGRAMING ACROSS THIS FOR HOUSING CONTINUUM AND THE RENTAL HOMES FOR FUTURE HOMEBUYERS PROGRAM IS JUST ONE OF MANY PROGRAMS TARGETED LOW INCOME HOUSEHOLDS. THE SPECIAL COMPONENT OF THIS PROGRAM IN PARTICULAR IS ITS FOCUS ON HOMEOWNERSHIP READINESS FOR THIS POPULATION. AND SO WHILE IT IS AFFORDABLE RENTAL HOUSING, ITS UNDERLYING GOAL IS TO MOVE THOSE HOUSEHOLDS AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES AT THE AS THEY EXIT THE PROGRAM.  SO SOME BACKGROUND ABOUT THE CURRENT PROGRAM AS IT'S RUN WE HAVE 21 ACTIVE RENTAL PROPERTIES WITHIN THE PROGRAM AND TO DATE WE HAVE 60 SUCCESS STORIES OF HOUSEHOLDS EXITING THE PROGRAM AND PURCHASING HOMES. WE DO ACTUALLY HAVE ONE HOUSEHOLD CURRENTLY GOING THROUGH THE CLOSING PROCESS SO THAT NUMBER WILL GO UP BY ONE THIS YEAR WHICH IS EXCITING TO HEAR.  THE CURRENT ELIGIBILITY CRITERIA FOR THE PROGRAM IS 50 TO 80% OF AREA MEDIAN INCOME AND WE DO ANNUALLY RECERTIFY HOUSEHOLD SO WE WE DO A RECALCULATION OF THEIR ADJUSTED INCOME TO IDENTIFY WHAT THAT ESCROW CONTRIBUTION WOULD BE ON AN ANNUAL BASIS AND AT THAT TIME WE ALSO COMPLETE A LEASE RENEWAL AS PART OF THAT RECERTIFICATION PROCESS.  SO THE PROPOSED AMENDMENTS BEFORE YOU THIS EVENING ARE TWOFOLD. THE FIRST COMPONENT OF THIS IS INCREASING PROGRAM ELIGIBILITY FROM 50 TO THE 60% AMI LIMIT AND SO THAT TOP CEILING OF 80% IS IS MAINTAINED THROUGH THESE PROPOSED AMENDMENTS. AND THE GOAL THERE AGAIN FOR NEW HOUSEHOLDS MOVING INTO THE PROGRAM STARTING IN 2025, IT CREATES THAT GAP BETWEEN THE RENTS THAT WE'RE ASKING AND THE INCOME LEVELS TO ALLOW THEM HIGHER CHANCES OF PAYING INTO ESCROW SOONER WITHIN THE PROGRAM. THE SECOND COMPONENT OF THE PROPOSED AMENDMENTS IS INCORPORATING MAIN COUNTS MET COUNCIL 50% EMI RENT AFFORDABLE RENT AS AN ADDITIONAL THRESHOLD FOR BOTH SETTING MOVING RENTS BUT ALSO DETERMINING RENT INCREASES FOR CURRENT PROGRAM PARTICIPANTS AND THIS AGAIN IS TO ENHANCE CURRENT PROGRAM GUIDELINES THAT INCLUDED THE ABILITY TO INCREASE RENT UP TO 5%.  SO CURRENT PROGRAM PARTICIPANTS ARE ALREADY AT THAT 50% AMI INCOME LEVEL AT LEAST TO QUALIFY FOR THE PROGRAM OUR CURRENT RENT AMOUNTS AS YOU CAN SEE ON THE SCREEN ARE WELL BELOW WHAT THE COUNCIL DETERMINES IS AN AFFORDABLE FOR HOUSEHOLDS AT THAT 50% AMI LEVEL AND PROPOSE INCREASES FOR CURRENT TENANTS STILL ARE FALL WELL BELOW THAT 50% AMI RENT WHICH FOR IN THIS INSTANCE OR FOR 2025 IS $1,615. SO THE PROPOSED INCREASE FOR HOW WE WOULD UTILIZE METROPOLITAN COUNCIL 50% IN MY RENT IS THAT WOULD BE THAT WOULD BE WHAT THE NEW MOVE IN RENTS ARE FOR HOUSEHOLDS AND WE WOULD ALSO USE IT TO TEST AGAINST WHETHER A 5% INCREASE OR SETTING THE RENTS AT THE MET COUNCIL LIMIT FOR CURRENT RENT HOUSEHOLDS WOULD IN A LOWER INCOME OR A LOWER RENT INCREASE SO USING 2025 AS AN EXAMPLE AND APPLYING THIS METHODOLOGY EFFECTIVE RENTS FOR A NEW IN WOULD BE SET AT $1,615 FOR CURRENT PROGRAM PARTICIPANTS BECAUSE THE RENT THE CURRENT RENTS ARE SO FAR BELOW THAT 1615 WE APPLIED A 5% INCREASE WHICH IS WHERE WE GOT THE 1143 TO 1489 RANGE. SO FOR CURRENT RESIDENTS 5% INCREASE IS EQUAL TO AROUND 55 TO $71 ADDITIONAL IN RENT PER MONTH FOR MOST OF OUR HOUSEHOLDS. WHAT THIS MEANS IS A SMALL DECREASE POTENTIALLY IN WHAT THEY CAN BE PAYING INTO ESCROW . BUT AS YOU CAN SEE ON THE SCREEN, MAJORITY OF OUR HOUSEHOLDS HAVE A HEALTHY ESCROW CONTRIBUTION THAT THEY'RE CONTRIBUTING MONTHLY AND SO WHILE IT MAY SLIGHTLY REDUCE WHAT THEY'RE PAYING INTO ESCROW WOULDN'T PROHIBIT THEM FROM OR PROHIBIT THEM FROM CONTINUING TO SAVE FOR THAT DOWN PAYMENT. THIS 5% INCREASE IS ALSO CONSISTENT WITH INCREASES IN IN GENERAL AFFORDABLE PROPERTY MANAGEMENT PRACTICES WITHIN THE INDUSTRY AS WELL IN TERMS OF NEXT REPS WE ARE IN THE PROCESS OF COMPLETING A FULL REVIEW OF THE ADMINISTRATIVE POLICIES FOR THIS PROGRAM AND WE PLAN TO COME BACK TO THE WITH THOSE LATER THIS YEAR.  THESE ARE JUST MORE IMMEDIATE ACTION ITEMS BECAUSE WE KNEW WE WOULD NEED TO BE INCREASING RENTS THIS YEAR. WE WANTED TO MAKE SURE THAT WE WERE AGAIN MEETING PROGRAM OBJECTIVES WITH ANY RENT INCREASES APPLIED FOR THIS YEAR UPON BOARD APPROVAL TONIGHT THE METHODOLOGY WOULD BE APPLIED THROUGH OUR 2025 RENT RENEWAL LETTERS WHICH ARE SENT OUT TO HOUSEHOLDS 60 DAYS IN ADVANCE OF THEIR RECERTIFICATION AND THE PROPOSED METHODOLOGY WOULD THEN BE APPLIED ANNUALLY INCREASE RENTS AND ALSO SET RENTS FOR NEW MOVEMENTS.  THIS CONCLUDES MY PRESENTATION I'LL RETURN IT BACK TO THE CHAIR FOR QUESTIONS AND DISCUSSION.  ANY QUESTIONS?  THANK COMMISSIONER. WE'LL GO BACK TO THE SLIDE RELATED SLIDE BEFORE THIS IN PLACE SO THE RENT INCREASE HERE FOR IMPACT IS CURRENTLY OR AT LEAST WOULD BE 5% FIRST OFF AND THEN YOU LOOK AT WHERE THE CURRENT RENTS ARE 55 PER MONTH UP TO 71 PER MONTH BASED ON WHAT WE THANK YOU CHAIR AND COMMISSIONER. SO THE 5% INCREASE IS APPLIED TO THEIR CURRENT RENT FOR THAT WE'RE CHARGING IN 2024 AND SO THE CURRENT RENTS IN A RANGE SO THEY'RE NOT WE'RE NOT CHARGING THE SAME AMOUNT FOR EACH HOUSEHOLD IS BASED ON WHEN THEY MOVED IN AND WHAT THAT CURRENT RENT WAS SET WHEN THEY MOVED IN SO THAT'S WHERE THAT RANGE IS COMING FROM SOME OF OUR HOUSEHOLDS ARE AT THE LOWER END BASED ON WHEN THEY MOVED INTO THE UNITS. SOME OF OUR HOUSEHOLDS ARE AT A SLIGHTLY HIGHER RENT CURRENTLY AND SO DEPENDING ON WHAT THEIR CURRENT RENT IS THAT 5% RESULTS IN A DIFFERENT NUMBER?  OKAY. AND TAKING A LOOK AT THAT, IS IT WAS THERE ANY CONSIDERATION GIVEN TO POSSIBLY BEING AT 3% THE FIRST YEAR AS YOU INCORPORATE THIS VERSUS A 5%? THANK YOU. CHEERING COMMISSIONERS WE DID LOOK AT THAT WITH THE WORK WITH THE OPERATING COSTS THAT WE'RE CURRENTLY TRYING TO COVER WE WE NEEDED TO BALANCE THAT AND BECAUSE OUR RENTS CURRENTLY ARE SO LOW WE DETERMINED THAT A 5% RENT INCREASE COULD BE ABSORBED BY CURRENT PROGRAM PARTICIPANTS BASED ON WHERE THEY'RE SITTING AT INCOME LIMITS. A COUPLE OF QUESTIONS LATER OURSELVES.  I MEAN IN MY VIEW I DO YOU HAVE ONE MORE QUESTION. YOU HAVE A QUESTION. I JUST WANT TO HOLD MY MY MY QUESTION ALSO GOES TO RELATIONSHIP TO CONVERSATIONS I ASSUME THOSE NO CONVERSATIONS HAVE HAD BEEN TAKING PLACE AT THIS POINT IN TIME WITH TENNIS RIGHT.  THANK YOU CHAIR COMMISSIONER SO AGAIN WE BECAUSE THESE RENT INCREASES HAVEN'T BEEN APPROVED THERE HAVEN'T BEEN FORMAL COMMUNICATIONS BUT WE ALSO DON'T HAVE A RECERTIFICATION WITHIN THE PROGRAM UNTIL MARCH. SO WE DO HAVE SOME TIME BEFORE THAT NEEDED TO HAPPEN SO IS THERE ANYONE IN THE PROGRAM RIGHT NOW THAT MIGHT BE IN JEOPARDY OF LOSING THEIR HOUSING ON NOT BEING ABLE TO MAKE CURRENT RENTS? THANK CHAIR COMMISSIONERS AT THIS TIME NO BASED ON CURRENT CURRENTLY WHERE HOUSEHOLDS ARE SITTING IN THE LAST INCOME DETERMINATION WE DID THAT THAT WAS NOT A CONCERN THAT WE HAD WHEN WE DID OUR ANALYSIS.  THE COMMISSIONERS YEAH.  SO I JUST HAD A COUPLE OF COMMENTS.  I MEAN FIRST OFF KIND OF PIGGY BACK ON WHAT YOU MENTIONED. I WOULD FURTHER ADD THAT I THINK IT'S REALLY IT WOULD BE A REALLY GOOD IDEA TO ACTUALLY SPEAK TO THE TENANTS AND WHERE THEY'RE AT BECAUSE I UNDERSTAND YOU KNOW THERE'S THE PAPERWORK WHERE THEIR INCOME IS AT BUT YOU KNOW LIKE I GREW UP IN LOW INCOME HOUSING AND KNOW THAT THE REALITY CAN BE VERY DIFFERENT IN THE SENSE THAT THERE CAN BE SO MANY UNEXPECTED COSTS AND KIND OF WITH POVERTY COMES WITH YOU KNOW YOU HAVE TO PAY MORE TO BE POOR IF THAT MAKES SENSE. YOUR CAR BREAKS DOWN RANDOMLY AND SO LOOKING AT IT PAPER WISE IT MAY NOT BE EASY TO SEE THAT BUT I DO THINK IT WOULD BE A GOOD IDEA TO ACTUALLY DISCUSS WITH THEM BECAUSE FOR MANY PEOPLE THE IDEA  OF 5% INCREASE MAY NOT SEEM LIKE A LOT BUT I THINK WHEN YOU'RE IN THAT POSITION IT IS A BIG CHANGE OR IT CAN IMPACT YOU. SO I JUST THINK THAT AT LEAST PREEMPTIVELY SEEING WHAT THEY THINK WOULD BE A GOOD IDEA AND SO MEAN I UNDERSTAND THAT THIS GOES TOWARDS THEM BEING ABLE TO HAVE OWNERSHIP FOR SOME PEOPLE IT'S LIKE THEY KIND OF HAVE TO THINK ABOUT THE NOW AS OPPOSED TO LONG TERM AND IT'S UNFORTUNATE BUT I THINK THERE SHOULD AT LEAST BE SOME KIND OF COMMUNICATION WITH THE ACTUAL TENANTS.  THANK YOU COMMISSIONER. YOU SEE I IF I CAN JUST RESPOND TO THAT COMMENT I APPRECIATE THAT PERSPECTIVE.  I THINK ONE THING THAT IS ENCOURAGED IS BASED ON THE CURRENT ANNUAL MEETINGS THAT WE'RE HAVING WITH HOUSEHOLDS AND THE TYPE OF GOALS THAT THEY'RE SETTING ON AN ANNUAL BASIS. MANY THINGS THAT WE DISCUSS AT THOSE MEETINGS INCLUDE HOW ARE WE PURSUING OPPORTUNITIES TO INCREASE YOUR INCOME? HOW ARE WE MAKING SURE THAT YOU HAVE HEALTHY SAVINGS? AND SO THE THE FINANCIAL READINESS EDUCATION THAT I THINK COMES IN TANDEM WITH THIS PROGRAM IS GOING TO HELP SUPPORT SOME OF THESE CONVERSATIONS AROUND THAT 5% INCREASE THIS YEAR.  COMMISSIONER RUUD, THE TIMING ON THIS, CAN YOU HELP US UNDERSTAND THE PERSPECTIVE ON YOUR TIMING? YOU KNOW, FIRST QUARTER VERSUS MID-YEAR OR MAYBE THE THIRD QUARTER? THANK YOU. CHAIR COMMISSIONERS THE REASON FOR THE TIMING IS WE WE WILL HAVE FIVE MOVES OUT WITHIN THE FIRST HALF OF THIS YEAR AND SO WE WANTED TO BE ABLE TO START THAT HIGHER ASKING RENT AS SOON AS POSSIBLE TO AGAIN REALIZE THAT IT WAS IN OUR OPERATING INCOME FOR THE FOR THE PROGRAM.  YEAH I HAVE A COUPLE QUESTIONS . HAVE RENTS INCREASED AT ALL SINCE HOUSEHOLDS HAVE MOVED IN LIKE THE ONES THAT ARE GETTING READY TO MOVE OUT? HAVE THEY HAD AN ANNUAL INCREASE? THANK YOU. COMMISSIONER MUELLER THERE WE'VE APPLIED INCREASES IN CONSISTENTLY OVER THE LAST FIVE YEARS SO IT'S NOT NECESSARILY THAT THERE'S BEEN AN INCREASE ON AN ANNUAL BASIS FOR CURRENT PARTICIPANTS.  WILL THIS GOING FORWARD WILL INCREASES BE AN ANNUAL THING? I THINK YOU CAN BE SURE IT IS ANTICIPATED JUST KNOWING OUR CURRENT FINANCIAL SITUATION WITH THESE PROPERTIES THAT WE ANTICIPATE THAT THE INCREASES WILL BE APPLIED MORE CONSISTENTLY ON AN ANNUAL BASIS. OKAY.  THERE ARE QUESTIONS COMMENTS ON THE CHAIR. I THINK AFTER WE'VE REVIEWED THIS AND YOU'VE GOT TO THE PRESENTATION I FEEL COMFORTABLE WITH IT KNOWING THE OBLIGATION THAT WE HAVE TO CONTINUE TO MAINTAIN THESE PROPERTIES.  I THINK THAT IT GOES HAND IN HAND WITH SUPPORTING PEOPLE WITH A PATHWAY TO HOMEOWNERSHIP.  SO IF WE CAN PROVIDE QUALITY HOUSING I THINK THAT NEGATES A LOT OF THE WORK WE'RE TRYING TO DO TO GET PEOPLE INTO HOMEOWNERSHIP SO I DO UNDERSTAND THE IMPACT LIKE $55 IS IT ON A GROCERY SHOP TO COVER IT NOW IT ALSO IT'S A LOT BUT ALSO UNDERSTANDING THAT THAT MONEY ISN'T JUST BEING INCREASED LIKE A PRIVATE LANDLORD FOR PROFIT THIS IS BEING INCREASED THAT.  WE CAN REINVEST INTO THESE PROPERTIES AND MAKE SURE THAT THE ROOFS AREN'T LEAKING THAT THE WINDOWS AREN'T DRAFTY, THAT PEOPLE HAVE DIGNIFIED HOUSING TO CONTINUE THIS PROGRAM AND MOVE IT INTO THE FUTURE. SO I FEEL I FEEL COMFORTABLE WITH THE 5% THAT WE HAVE RIGHT NOW AND I'M LOOKING FORWARD TO WHAT WE'RE GOING TO DO IN THE FUTURE TO CONTINUE TO KEEP THIS PROGRAM GOING.  COMMISSIONER WOOTEN WELL, I CONCUR WITH THAT. YOU KNOW PART OF THE CHALLENGE I'M HAVING PARA GENTLEMEN I'M HAVING IS THAT SOME OF THE IMPROVEMENTS HAVE BEEN MADE. THEY'RE GOING TO BE MADE WHERE IMPROVEMENTS SHOULD HAVE BEEN . WE SHOULD HAVE BEEN MAKING THEM OVER A PERIOD OF TIME AND NOW AS IT APPEARS TO ME THAT MAYBE THE BURDEN OF THOSE IMPROVEMENTS NOT BEING MADE IN A TIMELY MANNER IS BEING BORNE BY THE PAY THE CURRENT TENANTS. AND SO I'M I'M AMBIVALENT ABOUT HOW I FEEL ABOUT THE TIMING OF THIS.  I HAVE ONE ADDITIONAL QUESTION. SO YOU SAID FIVE YOU ARE MOVING OUT IN 25.  DO YOU HAVE FOR REJECTION LIKE FOR 26 AND ON THAT IS THERE A CHANCE WE COULD JUST INCREASE RENTS FOR NEW MOVE INS ONLY AND PEOPLE WHO ARE CURRENTLY LIVING DON'T GET INCREASE. JUST A THOUGHT.  THANK YOU. COMMISSIONER WHEELER THAT WAS ONE OPTION WE DIDN'T EXPLORE AND WE THE WAY WE WERE LOOKING AT IT IS ACTUALLY IF WE SAID THE RENTS AT A SLIGHTLY HIGHER RATE THAN THE 50% AMI SO IN THAT CASE BECAUSE THE STARTING RENT WOULD BE SO MUCH HIGHER THEN LIKE CAPPING THAT FOR THE FIVE YEARS THAT THEY'RE IN THE PROGRAM ESSENTIALLY NOT REALIZING ANY INCOME OR RENT INCREASES DURING THAT TIME AS PART OF THIS WORK THAT WE DID DO AN ANALYSIS OF ASSUMING THAT THEIR OR THEIR INCOME DIDN'T INCREASE OVER THAT FIVE YEARS ,SETTING IT AT HAVING THE STARTING INCOME BE AT 60% AMI WITHOUT AN INCOME INCREASE OVER FIVE YEARS EVEN WITH A 5% INCREASE THEY WERE ABLE TO PAY INTO ESCROW FOR THE MAJORITY OF THAT FIVE YEARS. MOST HOUSEHOLDS ABLE TO SELL BECAUSE MY COMMENT WAS NOT THAT THEY NEVER ONCE THEY MOVE IN THEY THEY GET THE HIGHER RENT AND THEN IT'S NEVER CHANGE IT'S THE 5% BUT IF JUST KIND OF SPEAKING TO COMMISSIONER WOOTEN'S CONCERN ABOUT HOW THIS MIGHT AFFECT CURRENT RESIDENTS IF WE ONLY THE RENT INCREASE IN SUBSEQUENT 5% FOR ALL THE NEW MOVE INS BUT THINK YOU KIND OF ANSWERED THAT. I THOUGHT OF ONE OTHER COMMENT AND ALONG THIS TOO WITH THAT IF YOU DON'T MIND OH NOW I LOST IT.  SORRY. YEAH SORRY I LOST IT.  ANY OTHER QUESTIONS?  COMMENTS ?  YES, COMMISSIONER CARTER. THANK YOU. SO JUST THINKING ABOUT THE PEOPLE WHO ARE CURRENTLY LIVING IN THE HOMES AND THEY'RE PROBABLY IN THE MIDDLE OF THEIR FIVE YEARS DO THEY DO WE DO THEY HAVE SIGNED A CONTRACT. I MEAN IS IT A YEAR TO YEAR CONTRACT?  I GUESS I WOULD ASSUME THAT SOME OF THESE THINGS HAVE ALREADY BEEN LAID OUT AND BEEN AGREED TO AND SO WHAT DOES THAT LOOK LIKE? THANK YOU, COMMISSIONER CARTER. CARTER SO WILL REITERATE UNDER OUR CURRENT ADMIN POLICIES FOR THE PROGRAM A 5% ANNUAL INCREASE IS ALLOWED THAT'S THE MAXIMUM ALREADY OUR CURRENT PROGRAM GUIDELINES THE FAMILY SIGNED A CONTRACT WHEN THEY FIRST MOVE INTO THE UNIT ABOUT THE PROGRAMMATIC COMPONENTS SO SETTING GOALS ANNUALLY AROUND READINESS PAYING INTO THAT ESCROW ACCOUNT AND THEY DO ANNUALLY SIGN A SIGN A LEASE IT AND AT THAT TIME WE REITERATE PROGRAM GOALS. OKAY.  SO I ALSO UNDERSTAND THE RATIONALE FOR MAKING CHANGES.  I GUESS I WOULD BE CURIOUS AFTER THEY'RE IMPLEMENTED AND I THINK THIS IS PROBABLY JUST KIND OF AN INITIAL CONVERSATION THERE'S MORE WORK TO BE DONE BUT YOU KNOW DOES THAT IMPACT OUR SUCCESS RATE SO I THINK YOU SAID WE'VE HAD 60 FAMILIES SUCCESSFULLY MOVE TO PURCHASE HOMES AND I GUESS I'D BE CURIOUS WITH THESE CHANGES IF THAT IF WE KIND OF STAY ON TRACK WITH THAT LEVEL OF SUCCESS OR IF THIS NEGATIVELY IMPACTS.  SO I JUST YOU KNOW, DID QUICK MATH ON AN A THREE PERSON HOUSEHOLD AT 60% SO $62 GOING INTO ESCROW AND IT'S MEAN IDENTIFIED BECAUSE IT'S 3720 THAT'S NOT ENOUGH FOR YOU KNOW SO THEN WHAT HAPPENS AND AND I CAN ASK YOU MORE QUESTIONS OFFLINE JUST IN TERMS OF KIND OF WHAT THIS LOOKS LIKE FOR DIFFERENT FAMILIES IN DIFFERENT SITUATIONS BUT I GUESS THAT WOULD BE ONE CONSIDERATION TOO. YEAH, I THINK YOU COMMISSIONER CARTER I THINK I JUST ADD TO AT THE END OF FIVE YEARS NOT ALL HOUSEHOLDS AT THE POINT WHERE THEY COULD MOVE RIGHT INTO MAKING AN OFFER ON A HOME DO HAVE UP TO A YEAR TO ACCESS THAT ESCROW SAVINGS ACCOUNT.  SO SOME HOUSEHOLDS WHAT THAT MEANS AT FIVE YEARS IS THAT THEY MOVE INTO DIFFERENT RENTAL PROPERTY AND CONTINUE THEIR SAVINGS JOURNEY OR MAYBE OTHER INITIATIVES TO KIND OF CONTINUE THAT JOURNEY TO HOMEOWNERSHIP. SO WHILE THEIR FIVE YEARS IS A HARD CUTOFF, THEY THEY STILL HAVE TIME EVEN IF IT'S A SMALLER ESCROW TO EXPLORE OTHER DOWN PAYMENT OPTIONS TO SUPPLEMENT WHATEVER THEY'VE SAVED INTO THAT ESCROW ACCOUNT . OUR STAFF DOES TALK THROUGH THAT WITH THEM AT THAT TIME.  YEAH. AND COMMISSIONERS IF I JUST MENTION SO PART OF THE THE GOAL OF THESE CHANGES WOULD BE TO INCREASE OUR SUCCESS RATE. THAT'S THE THAT'S THE HOPE AND GOAL AND PART OF THE WAY WE'RE DOING THAT IS BY ALLOWING THAT GAP BETWEEN THE RENTS AND INCOMES AND SO WE'LL DEFINITELY KEEP MONITORING. WE'RE ALSO LOOKING AT THE FULL PROGRAM FOR REVIEW SO THE BOARD CAN EXPECT THAT FULL REVIEW IN THE COMING KNOW PROBABLY LATER THIS YEAR AND THAT WILL ALSO INCLUDE SOME CONSIDERATIONS FOR OTHER WAYS THAT WE CAN MAKE THIS PROGRAM SUCCESSFUL.  ANY OTHER QUESTIONS, COMMENTS . RATE HEARING ON MAY I HAVE A MOTION TO APPROVE RESOLUTION SEVEN 2020 5-01 APPROVING AMENDMENTS TO THE RENTAL HOMES FOR FUTURE HOMEBUYERS MANAGEMENT AND ADMISSION POLICIES  SO MOVED MOTION BY DOUBLING OUR SECOND AND SECOND BY CARTER ALL IN FAVOR. ALL RIGHT.  OPPOSED I MOTION 5 TO 1 ACT OKAY.  ALL RIGHT. NEXT ITEM ON THE AGENDA OF 5.2 WHICH IS THE E ON LOAN DEFERRAL REQUEST. MAY I HAVE THE STAFF REPORT?  THANK YOU, CHAIR AND COMMISSIONERS SO THIS ITEM IS A REQUEST FROM AON FOR DEFERRAL OF THEIR LOAN WITH BLOOMING MEADOWS.  SO TO GIVE YOU SOME BACKGROUND THIS IS A MAP SHOWING WHERE VILLAGE CLUB IS VILLAGE CLUB AS THE PREVIOUS NAME OF THE COMPLEX THAT NOW ENCOMPASSES BLOOMING MEADOWS SOUTH AND BLOOMING MEADOWS NORTH. IT'S 306 UNIT APARTMENT THAT WAS AT RISK FOR CONVERSION FROM NATURALLY OCCURRING AFFORDABLE HOUSING TO MARKET RATE RENTS WITH A POTENTIAL FOR DISPLACING TENANTS. AND THAT WAS BACK IN 2019.  AND AT THAT TIME AN APPROACH TO THE CITY AND THE HRA REQUEST ASSISTANCE IN ACQUIRING THE VILLAGE CLUB TO PRESERVE THAT AFFORDABILITY AND COMPLETE IMPROVEMENTS TO ADDRESS LIFE SAFETY ISSUES AND ATTAIN CODE COMPLIANCE BLOOMING MEADOWS SOUTH. SO SOME BACKGROUND ON WHERE THOSE PROPERTIES ARE AT NOW SINCE 2019 IMPROVEMENTS HAVE BEEN MADE AT BLOOMING MEADOWS SOUTH TO ADDRESS THOSE LIFE SAFETY CONCERNS AND CODE COMPLIANCE ISSUES AND WE WERE INFORMED THAT A TOTAL OF $3.2 MILLION OF HAVE BEEN INVESTED TO ADDRESS THOSE ISSUES. THERE'S ALSO BEEN CONSTRUCTION NEW UNITS ON THE COMPLEX AND THAT WAS ON ONE OF THE UNDERUTILIZED SURFACE PARKING LOTS THE PROPERTY. AND SO THAT'S NOW KNOWN AS BUILDING BLOOMING MEADOWS.  YOU CAN SEE IT PICTURED THERE BLOOMING MEADOWS NORTH IS INCOME AVERAGED AT 60% AMI MEANING ALL THE UNITS ARE AFFORDABLE AT DIFFERENT AFFORDABILITY LEVELS AND AFFORDABILITY WAS PRESERVED AT BLOOMING MEADOWS SOUTH AND THOSE UNITS ARE PRESERVED AT THE 80% AMI LEVEL. BUT WE'VE BEEN INFORMED BY AND IN REALITY MANY OF THOSE RENTS ARE AT 60% OR BELOW SO THEY'RE EVEN MORE AFFORDABLE AT THIS POINT.  SO THE AS I MENTIONED, THE CITY AND HRA PROVIDED ASSISTANCE TO AND FOR THE ACQUISITION AND IMPROVEMENTS THAT WERE MADE TO BLOOMING MEADOWS SOUTH AND THAT WAS FOR THE PRESERVATION OF THOSE UNITS. THERE WAS ALSO AS PART OF THAT ASSISTANCE. THERE WAS UNDERSTANDING THAT A FUTURE PHASE OF DEVELOPMENT WOULD TAKE PLACE WITHIN THE COMPLEX. THAT FIRST PHASE WAS BLOOMING MEADOWS NORTH WHICH HAS HAPPENED AND SO TO SUPPORT THAT ACQUISITION AND THE IMPROVEMENTS MADE THE HRA LOANED ON 7 MILLION FROM THE AFFORDABLE HOUSING TRUST FUND AND PART OF THE AGREEMENT WHICH WAS RENEGOTIATED IN 2021 IS THAT IRONWOOD REPAID 2 MILLION IN PRINCIPAL AND 1 MILLION INTEREST BY JANUARY 2023 AND THAT HAS TAKEN PLACE AND THROUGH THAT REPAYMENT THE NEXT REQUIRED PRINCIPAL AND INTEREST PAYMENT WAS SCHEDULED OR IS SCHEDULED FOR TOMORROW JANUARY 15TH OF 2025.  ADDITIONALLY THE HRA ESTABLISHED A HOUSING TIVE DISTRICT TO SUPPORT THE PROJECT SO THE HOUSING TIFT DISTRICT CAPTURES INCREASES TO PROPERTY VALUE RESULTING FROM THE IMPROVEMENTS TO BLOOMING MEADOW SOUTH AND THE CONSTRUCTION OF THE THE NEW UNITS WHICH IS BLOOMING MEADOWS NORTH.  THE REVENUE FROM THE DISTRICT IS SPLIT IN SEVERAL WAYS WHICH ARE SHOWN IN THIS GRAPHIC. THE TAKEAWAY POINTS ARE THAT ALL OF THE TIF INCREMENT GENERATED BY BY BLOOMING MEADOW SOUTH SO THAT THE PRESERVED AFFORDABLE UNITS ALL OF THAT REVENUE IS RETAINED BY THE HRA AND THEN FOR THE TIF REVENUE FROM THE NEW UNITS FROM BLOOMING MEADOWS NORTH THAT REVENUE IS SPLIT BETWEEN THE HRA AND AVON AND THE TIF REVENUE THAT GOES TO AND IS PAID THROUGH A WHAT'S KNOWN AS A PAY GO TIFF NOTE. AND THAT'S THE MAJORITY OF THE REVENUE FROM THIS DISTRICT AROUND 70% GOES TO AON AND THE REMAINDER IS RETAINED BY HRA. SO FOR THE REQUEST TONIGHT AN HAS REQUESTED DEFERRAL OF ITS BIANNUAL 2025 AFFORDABLE HOUSING TRUST FUND LOAN PAYMENTS.  THERE ARE MULTIPLE FACTORS THAT HAVE BROUGHT THIS REQUEST FORWARD. I'VE LISTED THOSE THERE AND IS CURRENTLY WORKING WITH ITS SENIOR LENDER ON BLOOMINGTON SOUTH TO REFINANCE THE PROJECT AND CONSIDER CONSIDER FUNDING FOR COMPREHENSIVE AT THE PROPERTY AND THE REQUESTED DEFERRAL IS THOSE TWO PAYMENTS. EACH PAYMENT IS $197,722.83. SO THE TOTAL AMOUNT THAT WOULD BE DEFERRED FOR 2025 IS 395,445 AND $0.66 AND THOSE PAYMENTS WOULD BE DEFERRED UNTIL THE LOANS CURRENT MATURITY DATE WHICH IS JANUARY 15TH OF 2040.  THE THE INTENTION OF THIS REQUEST A DEFERRAL IS TO ALLOW TIME TO CONSIDER NEXT STEPS RELATED TO BLOOMING MEADOW SOUTH AND TO CONTINUE THE PRESERVATION OF AFFORDABILITY AT THE PROPERTY. THE HRA WILL BE ABLE TO CONTINUE MAKING ITS LOAN REPAYMENTS BY UTILIZING THE ANNUAL $500,000 HRA LEVY. THE STAFF HAVE ANTICIPATED OUR STAFF ANTICIPATE FROM AND THAT THERE MAY BE ADDITIONAL SUBSIDY REQUESTS RELATED FUTURE COMPREHENSIVE REHABILITATION OF BLOOMING MEADOW SOUTH AND STAFF WANTED TO INCLUDE THAT GIVEN THE FINANCIAL SITUATION OF THE MEADOW SOUTH AND SECONDARY POSITION OF THE HRA AS LOAN. THERE IS FINANCIAL RISK THAT THEY WILL NOT BE ABLE TO MAKE FUTURE PAYMENTS ON THE LOAN WITH THIS IS THE RECOMMENDED STAFF APPROVAL OF THE DEFERRAL REQUEST. YOU CAN MAKE THIS MOTION AND AT THIS POINT WE CAN TAKE QUESTIONS AND DISCUSSION AND I DO WANT TO MENTION DR. ANTHONY DR. JOHNSON IS HERE TONIGHT FROM AND SO THANK YOU ALL GREAT QUESTIONS COMMENTS COMMISSIONER WOOTEN.  CAN YOU HELP US UNDERSTAND HOW IN 21 AND 23 HE WAS ABLE TO MAKE THOSE PAYMENTS?  NOW THEY'RE ASKING FOR A DEFERRAL. THANK YOU CHAIR AND COMMISSIONERS FOR WHAT I'VE READ FROM THAT AMENDMENT PROCESS SO THE INITIAL LOAN AGREEMENT WAS MADE FOR THE ACQUISITION AND IMPROVEMENTS MADE FOR BLOOMINGTON SOUTH AND THAT WAS AROUND 2019 IN 2021 IN 2020 AND 21 BLOOMING MEADOWS NORTH WAS BEING NEGOTIATED TO BEGIN CONSTRUCTION AND AT THAT POINT THE HRA ENTERED INTO AN AMENDMENT PROCESS FOR ITS AFFORDABLE HOUSING TRUST FUND LOAN AND PART OF THAT AMENDMENT RESULTED IN A SCHEDULE FOR THAT REPAYMENT OF MILLION PRINCIPAL AND 1 MILLION INTEREST AND THE TIMING OF THOSE REPAYMENTS WAS TO COINCIDE WITH EQUITY THROUGH THE TAX CREDIT PROGRAM. SO THERE IS A SCHEDULED RECEIPT OF EQUITY THAT BASICALLY MY UNDERSTANDING IS THAT IT WASN'T COMING IN IN THE TIMING THAT AND HAD INITIALLY EXPECTED AND SO THAT RENEGOTIATED SCHEDULE TO ALLOW FOR THE EQUITY TO COME IN TO MAKE THOSE PAYMENTS SO THAT WAS ESSENTIALLY A ONE TIME RECEIPT OF FUNDS TO AND FOR THAT PROJECT THAT IS NO  LONGER AVAILABLE AND I THROUGH MY READING OF THE DOCS RELATED TO THIS PROGRAM PROJECT THERE WAS ALWAYS AN INTENT TO REPAY A PORTION OF THE $7 MILLION LOAN. IT WAS NEVER THE INTENT TO HAVE THAT ENTIRE BALANCE BE OUTSTANDING FOR THE THE TERM OF THE LOAN AND THE DEFERMENT TO THE END OF THE LOAN. CAN YOU HELP US UNDERSTAND THE THINKING IN THAT PROCESS AS WELL AS IS THERE INTEREST ACCRUED THAT DEFERMENT WAS JUST THE ACTUAL PRINCIPLE OF THEY'RE PAYING TERM COMMISSIONERS THE DEFERRAL TO THE END OF THE LOAN IS THE REQUESTED THE REQUESTED FORM OF DEFERRAL FROM AON AND SO THAT'S WHAT THE RECOMMENDATION FROM STAFF HAS BEEN THAT'S THE RECOMMENDATION THAT STAFF HAVE BROUGHT THE PAYMENTS THE THE FUTURE PAYMENTS WILL THEY'LL BE THE SAME BIANNUALLY EVERY YEAR UNTIL THE MATURITY DATE SO IT'S THAT 197 AND CHANGE THAT WAS THE THAT IS THE PRINCIPAL AND INTEREST PAYMENT NEGOTIATED IN THE LOAN DOCS SO THE DEFERRAL WOULD NOT IMPACT THE REQUIRED DEBT SERVICE FOR THE FOLLOWING YEARS IT WILL STILL BE THAT SAME AMOUNT TWICE A YEAR .  LET'S LOOK AT THE TREND COUNSELORS.  THE THAT'S RIGHT THE TWO DEFERRED PAYMENTS WOULD BE PART OF A BALLOON MATURITY DATE.  THE LOAN AND THE COMMISSION REMOVAL.  THANK YOU CHAIR SO THE ANTICIPATION IS THAT THEY'RE JUST REQUESTING 2025 DEFERRAL PAYMENTS WOULD RESUME AGAIN IN 26, IS THAT CORRECT TRENT COMMISSIONERS THAT IS THE REQUEST THAT AND IS BROUGHT AT THIS POINT AND THAT'S TO GIVE THEM TIME TO NEGOTIATE WITH THEIR SENIOR LENDER DURING THIS YEAR I GUESS ADDITIONALLY WHAT IS AND TO ADDRESS THE ISSUES THAT ARE ON THE SCREEN RIGHT HERE IN CASE THIS HAPPENS AGAIN AND 26 AND THEN WE'RE BACK HERE AGAIN TALKING ABOUT THIS  IT'S JUST EVENING COMMISSIONERS DR. ERIC ANTHONY JOHNSON PRESIDENT CEO AT AON. SO FIRST OF ALL, WE REALLY APPRECIATE THE TIME IN TERMS OF THE CONSIDERATION.  LET ME JUST GIVE YOU A LITTLE CONTEXT SO YOU REALLY UNDERSTAND IT'S FUNNY I WAS ACTUALLY HERE AND PUT THIS DEAL TOGETHER DURING MY TIME AS COMMUNITY DEVELOPMENT DIRECTOR FOR THE CITY OF BLOOMINGTON.  I'M REALLY FAMILIAR WITH HOW THIS ACTUALLY HAPPENED BUT TO THOSE ISSUES I JUST GOT TO JUST GIVE YOU SOME CONTEXT AFTER THE PANDEMIC AND THE EVICTION MORATORIUM WE BASICALLY SPACED ACROSS THE PORTFOLIO.  WE LOST ROUGHLY 63% OF OUR REVENUE ACROSS THE ORGANIZATION TURNS TO NONPAYMENT OF RENT JUST LIKE NO PAYMENT OF RENT.  IT'S A THAT SAFETY AND SECURITY ISSUES INCREASED EXCUSE ME ISSUES RELATED TO TIME SPENT IN UNITS WHERE YOU COULDN'T ACCESS THE UNITS TO DO ANY INSPECTIONS, ANY REPAIRS MOVING FROM AN AVERAGE OF ABOUT LET'S SAY I DON'T KNOW 2000 TO TURN THE UNIT UP TO ABOUT 7500 TO TINY UNIT. SO WHEN YOU SEE THIS SORT OF COLLECTION OF ISSUES THAT REALLY TOOK PLACE, IT REALLY STARTED HAPPENING AROUND THE PANDEMIC. BUT WHAT WE CAN ALSO TELL YOU NOW IS THAT THE DEVELOPMENT IS STARTING TO PERFORM MUCH BETTER.  WE HAVE MOVED FROM SIGNIFICANT VACANCY AS WE'RE PROBABLY AT ABOUT 94 AND 95% OCCUPIED BUT THE CAPITAL IMPROVEMENT NEEDS RELATED TO THE ROOF'S INTERIOR PIPING THINGS OF THAT NATURE IS REALLY THE PROBLEM. AND IT'S ALSO IMPORTANT TO NOTE THAT THE DEFERMENT IS NEEDED BECAUSE OUR LENDER NATIONAL EQUITY FUND IS GOING TO PROVIDE US MORE TO PUT TOGETHER A STRATEGY IN ITS WILL CONSIST OF THE STATES COMMUNITY STABILIZATION PROGRAM WHICH ALONG LED TO EFFORT TO GET THAT FUNDED AND THERE'S A NOTE ON THE SCREEN WE MAY RETURN TO ASK FOR SOME ADDITIONAL SUPPORT AS WE PUT TOGETHER A TOTALLY RE CAPITALIZED PROGRAM AT BLOWING MEADOWS UP. BUT SO IT'S REALLY THE DEBT WAS DUE TO AN F IN IN A YEAR GIVEN EVERYTHING HAPPENED NOT PERFORMING OKAY WE'LL GIVE YOU MORE TIME GIVE AN EXTENSION TO WORK THROUGH WHAT THE COMPREHENSIVE STRATEGY WILL BE AND WE WILL ALSO RETURN TO GIVE YOU AN UPDATE IN TERMS OF WHAT THAT WILL BE.  THANK YOU, DR. JOHNSON. THANK YOU.  THE THE OTHER I HAVE FOR STAFF IS WHAT'S THE OPPORTUNITY COST OF US UTILIZING THE $500,000 FROM THE HRA LEVY?  WHAT ARE BASICALLY WE'RE GOING TO MISS OUT ON WE UTILIZE THESE FUNDS TO SUPPORT THE BLOOMING MEADOW SOUTH WHICH I UNDERSTAND IS KEY TO US MAINTAINING AFFORDABLE HOUSING IN NATURALLY OCCURRING OCCURRING NATURALLY AFFORDABLE HOUSING WE HAVE A LOT OF WORK WE WANT TO DO AND THERE'S A LOT OF THINGS WE NEED TO GET GOING ON. SO WHAT'S THE OPPORTUNITY COST HERE FOR UTILIZING THESE FUNDS ? SHARON COMMISSIONERS THE $500,000 IS PART OF THE ANNUAL HRA BUDGET THAT'S A LEVY BACKSTOP AND IT'S ESSENTIALLY HELD CURRENTLY IN ESCROW.  SO THERE ISN'T NECESSARILY AN OPPORTUNITY TO UTILIZE THAT FUND AT THIS TIME. THE INTENTION OF THAT FUND IS TO BE AVAILABLE FOR SITUATIONS SUCH AS THIS WHERE THERE ISN'T REPAYMENT OF LOANS THAT ARE DUE TO THE HRA AND THAT IS SO THAT THEY CAN ENSURE THAT IT'S MEETING ITS OBLIGATIONS, ITS DEBT OBLIGATIONS THAT ARE EXTERNAL TO THE CITY  AND THE QUESTIONS COMMENTS I HAVE A QUESTION AND I DON'T KNOW IF IT WAS ANSWERED OR JUST NOT TO MY SATISFACTION BUT AGAIN HOW DO WE KNOW THAT IN COMING BACK IN 26 YOU'RE GOING TO BE ABLE TO PAY AND I THINK ONE OF THE SLIDES SAYS, YOU KNOW, THIS IS AT RISK BUT AND HOW MUCH OF A RISK OF THE WHOLE THING FALLING APART OR I, I GUESS HOW DO WE KNOW WHAT ARE ASSURANCES THAT THE SITUATION WILL TURN AROUND IN A YEAR DURING THOSE YEARS IT IS A IT'S A CHALLENGING SITUATION FINANCIALLY FOR BOTH PARTIES INVOLVED.  SURE. AND THE GOAL OF THE REQUEST IS TO GET TO THAT ASSURANCE ESSENTIALLY SO WE CAN SO THAT AND CAN DEVELOP A STRATEGY THAT KEEPS THIS PROJECT IN GOOD FINANCIAL STANDING SO THE HRA THE PROPOSAL HERE IS INTENDED TO BE A GOOD PARTNER WITH AVON AS THEY THROUGH THAT PROCESS AND IT'S ALSO PART OF THE REALITY IS THAT THE HRA ALONE IS IN SECOND POSITION AS MUCH MOST PUBLIC SUBSIDY IS AND THAT GIVES PRETTY LIMITED LEVERAGE IN TERMS OF NEGOTIATING THESE SORTS OF SITUATIONS.  SO WHERE WE'RE BEHIND THE SENIOR IN THIS CASE SO THAT'S PART OF THE FINANCIAL SITUATION THAT CREATES A CHALLENGE FOR THERE IS A COULD DR. JOHNSON COULD YOU COME UP IN SHED SOME LIGHT ON THIS ANSWER THIS QUESTION COMMISSIONER.  I'LL STICK TO THE QUESTION AGAIN.  HOW DO WE KNOW THAT YOU CAN PICK UP PAYMENT IN 26 AND WHAT IS THE RISK OF THIS PROJECT FALLING APART? YOU KNOW, THAT'S ACTUALLY A GOOD QUESTION AND THE ATTEMPT HERE IS TO PREVENT LOSS OF UNITS AT BLOOMING MEADOW SOUTH AND WHAT WE MEAN BY THAT IS THE LENDER NATIONAL EQUITY FUND IS ACTUALLY GIVING THE TIME TO REALLY PULL TOGETHER A STRATEGY.  HERE'S THE PROBLEM IN FULL TRANSPARENCY INTEREST RATES ARE NOT FAVORABLE A PROPERTY THAT HAS SERIOUS CAPITAL IMPROVEMENT NEEDS A PROPERTY.  ITS APPRAISED VALUE HAS DIPPED SIGNIFICANTLY IS NOT THE ONLY ONE WE ARE SORT OF THE FORERUNNERS ON NOAH PROPERTIES AND WE OWN A LOT OF NEWER PROPERTIES AND THOSE PROPERTIES HAVE A LOT OF CAPITAL IMPROVEMENT NEEDS. SO TO REALLY ANSWER YOUR QUESTION IS ACTUALLY IT'S ACTUALLY A RISK WE'RE TAKING TO SEE IF WE CAN PULL TOGETHER A STRATEGY THAT WE'LL BE ABLE TO REPAY THE HRA, MAKE SURE THE LENDERS ARE PAID AS WELL WHILE ALSO RESERVING THE UNITS. NOW THE BEAUTY OF THIS IS  I'VE BEEN IN THIS JOB THREE YEARS AS THE NEW CEO AND WE'VE BEEN FIGHTING THIS ISSUE ACROSS OUR PORTFOLIO AND I THINK WE'RE DOING A GOOD JOB IN TERMS OF TURNING THE CORNER ON SOME VERY TOUGH PROPERTIES BUT THIS ONE IN PARTICULAR SO YOU KNOW I HAVE A PERSONAL STAKE IN THIS ONE BECAUSE I WAS HERE TO GET DEAL DONE AND I FEEL BLOOMINGTON IS A GREAT PARTNER AND WE DO NOT WANT TO DO ANYTHING TO DISRUPT THAT RELATIONSHIP.  SO MAKING PAYMENTS YOU KNOW, WE MAKE PAYMENTS IN THE PAST. WE'RE GOING TO MAKE SURE WE STICK TO THAT COMMITMENT TO TRY AND GET IT DONE. BUT THERE IS A RISK SHOULD WE BUT WITH THE LENDER SAYING OKAY DR. JOHNSON, WE'RE GOING TO GIVE YOU GUYS AN EXTENSION WORK ON THE STRATEGY FROM THE PROFORMA TO THE SOURCES EVERYTHING AND LET'S TALK ABOUT HOW WE CAN GET THIS DONE. SO MY COMMITMENT IS TO KEEP THE HRA TOTALLY INFORMED WILL COME BACK AT ANY POINT IN TIME REQUESTS TO KEEP THE HIV UP TO DATE IN TERMS OF WHAT WE'RE DEALING WITH. THANK YOU. I APPRECIATE THAT.  COMMISSIONER WOOTEN, IS THERE AND YOU DON'T HAVE THE ANSWERS NOW BUT AS YOU AS YOU LOOK AT THEIR STRATEGY AND ABOUT THE MANY VIABLE IF THEY DO YOU THINK THE STAFF HERE CAN DO TO ASSIST IN PARTNERING WITH YOU TO HELP LEVERAGE YOUR INTEGRITY AND THE COMMITMENTS YOU'VE MADE AND THE ABILITY KEEP THINGS AFLOAT FOR THE PAST THREE YEARS THIS I HOPE THAT YOU WOULD FEEL COMFORTABLE ENOUGH TO ESPECIALLY SINCE YOU HAVE A RELATIONSHIP TO COME AND ASK AND NOT JUST WAIT AND REPORT WHAT CAN'T BE DONE OR WHAT CHALLENGES YOU HAVE. ABSOLUTELY. THE COMMISSIONER APPRECIATE THAT. IF I COULD TELL YOU WHAT WE'RE TRYING TO DO WE'RE TRYING NOT TO COME BACK AND ASK FOR A GARGANTUAN SUBSIDY THAT MAKES SENSE SO WE WILL DO OUR BEST TO ENSURE THAT WE GET MY DIRECTION. THE STAFF IS LOOK BLOOMINGTON A GREAT PLACE TO DO BUSINESS TO WORK GOVERNMENT ALL SET UP OVER HERE I THINK IT'S FIRST CLASS AND WHILE THAT MAY BE THE CASE WE STILL DO NOT WANT TO COME IN HERE SAYING WE NEED $25 MILLION FOR THIS PROJECT. THAT'S NOT WHAT WE'RE TRYING TO DO.  WE WANT TO HOPEFULLY PUT TOGETHER SOMETHING THAT MAKES BUT WE WILL ABSOLUTELY DO THAT. SO I APPRECIATE THAT STATEMENT . OKAY. ANY OTHER QUESTIONS?  COMMENTS I MEAN OKAY.  WELL THEN I'M HEARING NONE. MAY I HAVE A MOTION TO APPROVE DEFERRED PAYMENTS FOR THE BLOOMINGTON MEADOWS SOUTH LAWN BETWEEN ELLEN AND THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BLOOMINGTON MUTO 000. RIGHT MOTION BY COMMISSIONER WOOTEN AND SECOND BY COMMISSIONER IS SAY ALL IN FAVOR OH EXCUSE ME CAN I MAKE ONE COMMENT PLEASE THIS PARTICULAR ITEM I'VE BEEN THINKING ABOUT SINCE THE PACKET CAME OUT AND I. I WILL SUPPORT THIS ONE THIS YEAR BUT IF THINGS START FALLING APART IF NEXT YEAR WE HAVE TO COME BACK AND DO THIS AGAIN IT'S REALLY HARD TO JUSTIFY THE CONTINUED PUBLIC SUPPORT BECAUSE WE HAVE TIFF IN THIS WE HAVE THE AFFORDABLE HOUSING TRUST FUND MONEY IN THIS WE HAVE WE'LL BE DEFERRING PAYMENT TO THE END OF THE THE TERM. WE'RE UTILIZING AN ADDITIONAL $500,000 NATURE LEVY WHICH IS ADDITIONAL JUST PUBLIC FUNDING FOR THIS AND MAKES ME VERY UNCOMFORTABLE IF WE HAVE TO DO THIS AGAIN.  AND SO I DO BELIEVE THE THE WORDS THAT DR. JOHNSON AND THE INSIGHT THAT HE'S PROVIDED TO US AND I WANT TO CONTINUE TO BE A PARTNER AND I THINK THE LENDER BEING WILLING TO EXTEND FOR AND TO CONTINUE TO DO THIS WORK GIVES ME CONFIDENCE BECAUSE IF THAT LENDER IS WILLING TO DO THIS AND I FEEL CONFIDENT THAT THERE IS A PATH FORWARD BUT IF WE HAD TO COME BACK AGAIN THIS NEXT YEAR THIS TIME I DON'T KNOW IF MY ANSWER WILL BE THE SAME. THANK YOU.  SO I THINK WE'RE AT THE VOTE ALL IN FAVOR I OPPOSED THE MOTION PASSES 6 TO 0 DID YOU WANT TO DO YOUR THING AFTER? OKAY SO NEXT UP IS JUST A DISCUSSION ITEMS AND THAT IS THE SANITARY SEWER FUNDING UPDATE MAY I HAVE THE STAFF REPORT .  GOOD EVENING CHAIR MUELLER COMMISSIONERS ONE MARKET GUARD AND PLANNING MANAGER AND I WANT TO GIVE YOU A LITTLE BIT OF A UPDATE ON SANITARY SEWER FUNDING AND YOU MIGHT ASK WHAT DOES THAT HAVE TO DO WITH HIPAA? WHY WHEN I TALK ABOUT AT THE HRA IT'S BECAUSE IT HAS A BIG IMPACT ON HOUSING.  IF WE TOOK NO ACTION AT ALL JUST LEFT THE SEWER SYSTEM AND ITS PRESENT LEVEL THEN PORTIONS OF THE CITY WOULD NOT ABLE TO CONTINUE TO DEVELOP WHICH WOULD LOWER THE ABILITY THE CITY TO IMPACT HOUSING NEEDS THROUGH NEW SUPPLY AND WOULD ALSO PUT A LOT OF PRICE PRESSURE ON EXISTING UNITS AS WELL.  AND THEN CERTAINLY THIS HAS AN IMPACT ON DEVELOPMENT FINANCES IF YOU'RE DEVELOPING PROPERTY AND YOU HAVE THESE NEW FEES THAT'S GOING TO PUT MORE PRESSURE ON YOUR PROFORMA AND MAKE IT DIFFICULT INCREASE FUNDING GAP. SO THAT'S WHY WE'RE HERE TONIGHT TO TALK A LITTLE BIT ABOUT THAT. SO BLOOMINGTON HAS REACHED A SEWER CAPACITY AND SEVERAL AREAS OF THE CITY. TWO AREAS WERE CALLING THE NORTH CENTRAL AND SOUTH CENTRAL AREA ALREADY AT CAPACITY.  SO NO ADDITIONAL DEVELOPMENT COULD BE ADDED OR VERY LITTLE IN AREAS UNTIL WE DO SOME SEWER IMPROVEMENTS AND THEN OTHER AREAS OF THE CITY AND NEAR TERM BEFORE 2040 WE ALSO EXPECT THAT OUR REACH THEIR CAPACITY AS WELL SO A BIG IMPACT ON FUTURE DEVELOPMENT.  OUR PUBLIC WORKS STAFF HAS PUT MANY IMPROVEMENTS THAT ARE NEEDED. THESE ARE ALL IN OUR CAPITAL IMPROVEMENTS PROGRAM BETWEEN NOW AND 2040. YOU CAN SEE THE MAP OF ALL THE DIFFERENT AREAS THAT NEW SEWER PIPES ARE NEEDED IF YOU ADD THESE TOGETHER RIGHT NOW THEY'D TOTAL JUST ABOUT $55 MILLION AND THAT'S BETWEEN NOW AND 2040.  SO WE'VE BEEN WORKING ON THIS A WHILE. WE'VE HAD A MULTI DEPARTMENTAL STAFF WORK GROUP FOCUSED ON THIS AT SOME INITIAL DISCUSSION WITH COUNCIL BACK IN MAY AND THEN OVER THE SUMMER WE DID A LOT OF COMMUNITY OUTREACH AND MET WITH KEY STAKEHOLDERS,  RECEIVED SOME INITIAL DIRECTION FROM THE COUNCIL IN OCTOBER AND THEN ON DECEMBER 2ND AFTER A PUBLIC HEARING THE COUNCIL ADOPTED THE BLOOMINGTON'S FIRST CITY SACK FEES SEWER AVAILABILITY CHARGE SO THAT'S NOW IN PLACE. IT TOOK EFFECT AT THE FIRST OF THE YEAR SO THE CITY LOOKED AT SEVERAL OPTIONS INCLUDING NO ACTION LIVING WITH WHAT WE HAVE IN TERMS OF SEWER SYSTEM FUNDING IMPROVEMENTS THROUGH SAC FEE FUNDING IT THROUGH INCREASED UTILITY RATES OR ALTERNATIVE SOURCES OR SOME COMBINATION OF OF THOSE IN TERMS OF COMMUNITY ENGAGEMENT, WE HAD AN ONLINE SURVEY NOT SCIENTIFIC BUT WHAT WE HEARD FROM PEOPLE THAT RESPONDED WAS A PREFERENCE TO FUND THROUGH A CITY TAXI OR SOME COMBINATION OF TAXI AND OTHER SOURCES AT OUR DEVELOPER ROUNDTABLES THE GENERAL TAKE AWAY WAS THAT DEVELOPERS THAT WE HAD CONCERNS AND THAT THEY UNDERSTOOD THE NEED TO HAVE A CITY SEXY THEY ENCOUNTER THAT IN A LOT OF OTHER CITIES WASN'T IN PLACE IN BLOOMINGTON THE PAST THAT BEING SAID THEY ALSO PREFERRED THAT OTHER PARTIES PAY FOR IT RATHER THAN THAN PAYING THEMSELVES WHETHER IT'S OTHER GEOGRAPHIC AREAS OR UTILITY RATE PAYERS AS WELL  SO THE COUNCIL DIRECTED APPROACH WAS TO MOVE FORWARD WITH OUR TWO MOST CRITICAL SANITARY SEWER PROJECTS THAT NORTH CENTRAL AND THE SOUTH CENTRAL PROJECT AND TO FUND THOSE PROJECTS AND THEN OTHERS BEYOND THAT THROUGH A MIX OF THESE ARE NEW DEVELOPMENT THAT'S THE CITY SEXY AND INCREASE SANITARY SEWER USER RATE THAT'S THE FEES THAT USERS CITYWIDE PAY MONTHLY ON THEIR UTILITY BILLS AND THEN TO CONTINUE TO PURSUE ALTERNATIVE FUNDING SOURCES ESPECIALLY FEDERAL AND STATE GRANTS AND THIS IS I BELIEVE THE CITY'S NUMBER ONE LEGISLATIVE REQUEST THIS YEAR IS FOR ASSISTANCE ON THAT NORTH CENTRAL PROJECT.  SO THE ADOPTED SEXY IT WORKS OUT TO $2,026 PER UNIT IN A PSYCH UNIT IS THE MEASURE OF THE AMOUNT OF SEWER FLOW THAT DIFFERENT USERS HAVE.  ONE PSYCH UNIT IS EQUAL TO THE FLOW FROM SINGLE FAMILY HOME CITY TAXES ARE COMMON.  A LOT OF OUR NEIGHBORING COMMUNITIES HAVE THEM AND THE INTENT IS IF EVERYTHING GOES TO PLAN IF YOU MEASURE BETWEEN TODAY AND 2040 THAT APPROXIMATELY 61% OF THE COSTS OF ALL THESE DIFFERENT SEWER PROJECTS WOULD COME FROM TAXES AND THEN THE REMAINDER 39% WOULD COME FROM INCREASED UTILITY RATES. THAT 39% ALSO HAPPENS TO BE THE CALCULATED PERCENTAGE ACROSS ALL OF THESE PROJECTS. SO THE ASSET RENEWAL COMPONENT OF EACH PROJECT THE IDEA BEING WHEN YOU TAKE AN OLD SEWER PIPE IN THE GROUND AND YOU REPLACE WITH A NEW SEWER PIPE, SOME OF THE COST IS JUST HAVING A BIGGER PIPE BUT YOU'RE ALSO ADDING BENEFIT TO THE SYSTEM AT LARGE BECAUSE NOW YOU HAVE A BRAND NEW PIPE THAT WOULD NOT NEED TO BE REPLACED EVEN IF YOU SET ASIDE THE CAPACITY ISSUE IN TERMS OF THE UTILITY RATES, THE THIS GRAPH SHOWS OVER TIME THE PROJECTED FUTURE RATES THE BLUE LINE IS IF WE DID NOTHING IN TERMS OF ADDING CAPACITY TO THE SYSTEM THE RATE INCREASES ANTICIPATED JUST BECAUSE WE HAVE ASSET RENEWAL NEEDS WE HAVE PIPES THAT ARE REACHING THEIR LIFESPAN BUT YOU ADD IN THE CAPACITY EXPANSION THAT'S POTENTIALLY THE RED LINE. OUR HOPE IS THAT OUR DEVELOPMENT WILL COME IN AT HIGHER LEVELS THAN WE FORECAST WE FORECAST FOR THE NEXT FIVE YEARS VERY, VERY CONSERVATIVELY CONSERVATIVELY . BUT IF THE DEVELOPMENT DOES COME IN AT A STRONGER PACE THEN THE NEED FOR HIGHER UTILITY RATES WITH LOWER RATHER THAN THE RED LINE WOULD BE CLOSER TO THAT BLUE LINE IN TERMS OF RATE INCREASES.  BLOOMINGTON HISTORICALLY AS COMPARED VERY WELL TO POORER COMMUNITIES IN TERMS OF UTILITY WITH THESE INCREASES WE DO ANTICIPATE BLOOMINGTON WOULD MOVE A LITTLE BIT CLOSER TO THE AVERAGE OF THESE POORER COMMUNITIES.  BUT WE KNOW THAT A LOT OF THESE COMMUNITIES ARE FACING SIMILAR SITUATIONS AND THEY'LL BE RAISING THEIR RATES AS WELL.  SO ADDRESSING THESE CONSTRAINTS HAS A LOT OF POSITIVE BENEFITS SO CERTAINLY THE COMMUNITY CAN CONTINUE TO GROW AND EVOLVE.  THAT MEANS NEW HOUSING, NEW BUSINESSES, SERVICES, THINGS THAT RESIDENTS VALUE INCREASED ECONOMIC, NEW EMPLOYMENT OPPORTUNITIES WITH THAT ACTIVITY TAX BASE GROWTH.  SO A LOT WOULD BE SPENT BUT A LOT WOULD BE GAINED AT THE SAME TIME. LOOKING AT SACK FEES AND OTHER COMMUNITIES THEY THEY RANGE QUITE A BIT ON THE LOW END MAPLEWOOD $130 PER UNIT ON THE HIGH END OF WHAT WE SURVEYED BROOKLYN CENTER AT $5,000 A SAC UNIT THE SAC AMOUNT IS BASED ON THE COMMUNITY'S NEED SPECIFICALLY SO YOU CAN'T REALLY COMPARE ONE CITY TO ANOTHER BUT BLOOMINGTON WOULD BE IN KIND OF THE MIDDLE RANGE IN TERMS OF WHAT THE FEES WOULD BE AMONG THE CITIES THAT CHARGE CITY TAXES.  SO WE DID SOME CASE STUDIES AT WHAT WOULD BE THE IMPACT ON DIFFERENT TYPES OF LAND USES.  SO IF WE LOOK AT A SINGLE FAMILY EXAMPLE ASSUMING A PROJECT COST OF $500,000, A SINGLE FAMILY HOME GENERATES ONE SAC UNIT SO THEIR FEE $2,026 THAT WOULD BE 0.41% OF THE PROJECT COST WOULD BE THE FEE.  IF WE LOOK AT SOME OTHER LAND USES HERE NOBLE APARTMENTS 149 SAC UNITS THERE FEE WOULD BE 0.7% OF PROJECT COST AND A MIXED USE EXAMPLE 0.68% ON INDUSTRIAL EXAMPLE 0.41% AND THEN THE HOTEL WOULD HAVE BEEN 0.35%.  SO GENERALLY THAT FEE IS RANGING BETWEEN A THIRD OF 1% AND TWO THIRDS OF 1% OF CONSTRUCTION COST.  THAT SOUNDS LIKE A LOW NUMBER BUT THAT CAN BE THE DIFFERENCE BETWEEN THE PROJECT MOVING FORWARD OR NOT MOVING FORWARD AND WE CERTAINLY RECOGNIZE THAT THAT'S SIGNIFICANT AND IN CONTEXT OF DEVELOPMENT.  SO WHAT'S WHAT ARE THE IMPACTS ON DEVELOPMENT? WELL, THERE ARE REALLY TWO SCENARIOS THAT COULD HAPPEN. ONE IS IF THE PROFORMA ALLOWS IF THE PROFORMA HAS SPACE TO ABSORB THE FEE, THAT COULD BE ONE SCENARIO AND THEN ESSENTIALLY THE DEVELOPER IS PAYING THE FEE OUT OF THEIR WHAT WOULD OTHERWISE BE ADDITIONAL PROFIT. THE OTHER SCENARIO IS IF YOU HAVE A PROFORMA THAT DOES NOT HAVE EXTRA CAPACITY THEN THAT CREATES A IN THE PROFORMA.  IN THAT CASE THE DEVELOPER HAS A FEW OPTIONS THAT THEY COULD TRY TO PASS ALONG THAT ADDITIONAL COST THROUGH HIGHER RENTS OR HIGHER SALE PRICES. BUT THAT'S TRICKY BECAUSE THE MARKET PROBABLY SUPPORT THAT THEY'RE PROBABLY GETTING WHATEVER RENTS THEY COULD GET OUT OF THE MARKET ANYWAY. ANOTHER OPTION BE TO PURSUE THE PROJECT IN A DIFFERENT CITY THAT DID NOT HAVE FEE.  A LOT OF OUR SURROUNDING CITIES DO HAVE THESE FEES WHERE THEY COULD SEE PUBLIC RESOURCES TO FILL THE GAP SUCH AS TURF AND WE THINK THAT WILL BE A VERY COMMON REQUEST. WE SEE A LOT OF REQUESTS IN THE FUTURE NOT ONLY DUE TO THIS FEE BUT OTHER FEES THAT HAVE BEEN ADDED IN RECENT YEARS AS WELL AND FINALLY ANOTHER OPTION THEY COULD SIMPLY NOT PURSUE THE PROJECT WHICH WOULD BE A WORST CASE SCENARIO IN TERMS OF NEXT STEPS.  THE CITY COUNCIL DID ASK THAT WE RETURN BY THE END OF THE FIRST QUARTER OF THE YEAR TO TALK ABOUT A OF THINGS FIRST OF ALL POTENTIAL EXEMPTIONS,  AFFORDABILITY, SUSTAINABILITY OR OTHER FACTORS AND THEN SECONDLY POTENTIAL USE OF THE SOUTH LOOP DEVELOPMENT FUND TO PAY AT LEAST FOR PROJECTS IN THE SOUTH A AND THEN WE HAVE THE CONSTRUCTION OF OUR FIRST TWO PROJECTS BOTH OF WHICH ARE IN THE STUDY PHASE FEASIBLE PHASE RIGHT NOW OF THE SOUTH CENTRAL PROJECT HOPEFULLY WOULD BE COMPLETE BY NOVEMBER OF THIS YEAR THEN THE NORTH CENTRAL PROJECT BY NOVEMBER OF 2027 AND YOU CAN SEE THE PRICES THAT ARE 4 MILLION FOR THE SOUTH CENTRAL $26 MILLION FOR THAT NORTH CENTRAL PROJECT.  SO THAT'S ALL I HAVE FREE TONIGHT BUT HAPPY TO TAKE QUESTIONS OR HEAR YOUR COMMENTS, QUESTIONS, COMMENTS . OKAY I KNOW YEAH A COUPLE WEEKS AGO THANK YOU. YOU AND NOW ADMINISTRATOR ABE HAD SOME COMMENTS. YEAH, IF I COULD JUST SAY,  GLENN, BEFORE YOU WALK OUT JUST WANTED TO SAY GLENN IS RETIRING IN A FEW WEEKS AS WAS JUST NOTED AND SO WILL PROBABLY BE THE LAST TIME YOU SEE HIM BEFORE THE AGENCY UNLESS WE FORCE HIM TO COME HERE ON JANUARY 28TH FOR SOME UNSPECIFIED REASON BUT JUST WANTED TO RECOGNIZE THE MANY YEARS HE'S BEEN HERE AT THE CITY AND THANK HIM FOR THE NUMEROUS PRESENTATIONS TO THE HRA AND ALL OF THAT WORK SO THANK YOU GLENN YEAH I JUST WANT SAY THANK YOU TO THE HRA. I'VE HAD THE PRIVILEGE OVER THE YEARS AND WORKING WITH A VERY VERY CLOSELY ON MAJOR REDEVELOPMENT PROJECTS AS WELL AND I COULD BE AN AMERICAN 86 AND LYNDALE AND SO I'VE GOTTEN TO SEE THE REALLY IMPORTANT WORK THAT YOU DO AND.  I THANK YOU FOR YOUR SERVICE ON THIS COMMISSION.  THANK YOU AND GOOD LUCK TO YOU. THANK YOU.  AND THEN I JUST HAVE A COUPLE OF OTHER QUICK UPDATES. FIRST OUR NEXT MEETING IS ON THE 28TH AND THEN FEBRUARY 11TH IS THE ANNUAL MEETING OF THE HRA. SO YOU MAY HAVE NOTICED YOU DON'T HAVE CALENDAR HOLDS YET FOR MEETINGS AFTER FEBRUARY 11TH. THAT'S NOT BECAUSE OF THE INJURY ISN'T MEETING IT'S BECAUSE THEY GET APPROVED ON FEBRUARY 11. SO PLEASE BOOK ALL YOUR TUESDAY NIGHTS. WE'RE PLANNING TO CONTINUE THE SCHEDULE ON THE SECOND AND FOURTH TUESDAY OF THE MONTH AND THEN WANTED TO GIVE GOOD NEWS OF A COUPLE GRANTS THAT THE HRA HAS RECEIVED. ONE IS FOR SOUTHVIEW ESTATES WHICH IS A PROJECT THAT PRESERVES I THINK IT WAS 37 UNITS OF AFFORDABLE AND IS CONVERTING TEN MARKET RATE UNITS TO AND SO THAT RECEIVED A GRANT FROM THE MET COUNCIL FOR 700,000 THAT DOES INCLUDE A PORTION OF HRA MATCH SO YOU MIGHT SEE THAT COME BEFORE YOU AGAIN SHORTLY TO JUST TALK ABOUT WHAT THE MATCH MECHANISMS FOR THAT AND I BELIEVE THAT'S COME BEFORE THE BOARD IN THE PAST AND THEN THE OTHER ONE IS WHEN WE APPROVED AGREEMENTS FOR 9030 AND 93 OR 96 PARK WE MENTIONED THAT WE HAD APPLIED FOR SOME ADDITIONAL FUNDING THAT MIGHT HELP LOWER THE HRA GAP SUBSIDY AND I'M HAPPY TO ANNOUNCE THAT THAT PROJECT ALSO RECEIVED AN ADDITIONAL GRANT AWARD SO THAT WILL PROVIDE MORE UPDATES AS THAT GETS GOING. BUT THAT PROJECT SHOULD START CONSTRUCTION SHORTLY THIS YEAR AND HAPPY TO SAY THAT THE HRA SUBSIDY WILL BE A LITTLE BIT LESS THAN AND THAT IS ALL FOR MY UPDATES.  ALL RIGHT, THANK YOU. SO WE HAVE COME TO THE END OF OUR AGENDA. DO WE HAVE A MOTION TO ADJOURN JANUARY 14TH, 2025 A BOARD MEETING MOVED MOVED BY DOUBLING OH MY GOODNESS BY RUDIN AND SECOND PHASE ALL IN FAVOR HOUR RIGHT OPPOSED MEETING ADJOURNED