O stuff the chair did in the in the since the last meeting.

So then your third one is a resolution that you'll work on, as is the um number eight, the preliminary summary for Baylor.

The way you have an idea what we're gonna do today.

I'm assuming the last three pages being in here twice, the last two pages being here twice.

They want to make sure you saw it one way or the other one.

I want to make sure there wasn't a difference though.

If you got lost going front to back there going back to the end of the day, which one are we saying?

Like there's I have two last three pages.

At least mine does has two copies of HEB twenty twenty six oh five.

Yeah.

And then the memorandum of understanding, and then the um Baylor School Project.

Yeah.

You want to make sure you got it, whichever way you went through it.

Make sure there weren't any differences at all.

The agreement was amended.

Which what's the um trying to see the price?

The project that's at the corner of uh MLK where the old housing authority building used to be.

What's the name of that one?

Do you remember?

You know which one we're talking about?

One that's in like five or six phases.

Where is that okay?

I don't know if this on here or not, but I was gonna ask a question.

I can't remember what the what what we call that, but I picked up some information.

I went I had a question about it.

So one west side.

I don't think that's I don't think it's seven phases.

Uh-huh.

Yeah, because it has yeah, one west side phase, and you have the phase whatever.

So we talked about phase three B.

Okay, that's in a minutes, right?

Yes.

Okay.

Yeah.

Um we'd previously done one in the two A or Choice Neighborhoods grant.

Yeah, it's on the college here courts.

That's what it is.

Okay.

Yeah.

I had a question on that.

Thank you.

I was searching for the name of that project.

You're the brains on that one too, aren't you?

You're not going to be able to do that.

Oh, just teasing.

No.

I was going to give you ten minutes as a full professor, and you made it in five, so you're good.

It's a good thing Maria called then.

Do we have the pre-humanist?

I'll let you get your stuff good before we start.

Yes, sir.

Okay.

Uh we'll call the April meeting of the Health Education Housing Facilities Board of the City of Chattanooga to order.

Has the meeting been properly advertised and do we have a quorum present?

Yes, sir.

Thank you, ma'am.

Um our first item is uh item three, the minutes of the February 16th meeting.

We send them to you, so hopefully you had a chance to review them.

Chair would entertain a motion for at least for discussion purposes.

So moved as presented.

Okay.

Is there a second?

Okay.

Discussion on the minutes, questions, additions, clarifications, questions.

See none.

Uh all in favor of approving the minutes as presented, please say aye.

Aye.

Oppose like signed.

See none.

Minutes are approved.

Um every month we invite those persons attending who would like to address the board to speak for up to three minutes before we start.

Is there anybody that wants to address the board?

Speak now, forever.

Hold your tongue.

So okay, you're good.

All right.

Um our first uh resolution is uh you're ratifying the execution by the chair of a joinder for the Tennessee Housing Development Agency Rental Housing Declaration of Restricted Covenants and Notice of Land Use Restrictions.

Long one concerning C and E on the Larry Plant Transaction.

If you'll see in there, it shows you what that was.

So what you're doing is you're ratifying uh my previous approval on this.

Correct.

So chair would entertain a motion for um for your ratification of that execution.

Will we approve it?

Second.

Discussion or questions.

What were the what was ratified specifically?

That it would be used in this case for a CNE purposes for the Larry pilot transaction.

That was one of the things, and that's the restrictive covenants that were involved that the T THDA has required in connection with that.

And then the second one on here was just simply a notice of land use restrictions and maintenance of a private private storm water management facility that C and E has on the Bailey property on there.

So they are responsible in that case for a private stormwater management facility.

Okay.

So we're gonna take the first one.

So on the uh for C and E for the Larely Pilot Transition.

Uh we have a motion and a second.

All in favor of the approving the resolution, please say aye.

Aye.

Oppose like signed.

Seeing nothing, seeing none that uh passes.

Uh same thing on six.

Chair would entertain a motion, please.

So move.

Have a motion.

Is there a second?

Second.

We have a motion and a second.

As council said this is for uh the Bailey pilot transaction.

Questions or discussion on that one?

All in favor of the resolution, please say aye.

Aye.

Oppose like sign, seeing none.

Motion carries.

Okay, we have a um resolution authorizing the chair or the vice chair to enter into a memorandum of understanding with the Tennessee Housing Development Agency.

Uh, in substantially the form attached to administer a down payment assistance program would amount up to three million, subject to approved by the city attorney.

Yes, sir.

Let's get we get a motion and a second for discussion.

So move section.

Second.

Megan is gonna move this.

I was gonna give you another one, but you got this one.

Go right ahead.

Yeah, this is me.

Well, hey everybody, I'm Megan Miles, Director of Housing Policy for the City of Chattanooga, and um really excited to be bringing this to you today.

So for context, last year, Chattanooga City Council allocated $3 million for the city to create a brand new down payment assistance program.

And so our team has been very hard at work on that over the last several months.

We are going to be making up to $15,000 city funding available to first-time home buyers to purchase a home and city limits.

What you're looking at today is actually going to be a partnership with the Tennessee Housing Development Agency.

It's going to be the first time they've done anything like this in the state.

So they're really excited about it, and we are really excited about it.

And what this does is it allows us to access their mortgage products.

So THDA primarily does a lot of mortgage lending for single-family homes.

So they have products that allow up to $6,000 in DPA.

And we've designed our program so that those two things can be layered together.

We've created a really streamlined process so that if you're a lender that's already approved to work with THDA, you can continue to follow their process, access that $6,000, and then you can unlock an additional $15,000 in city funding so that we can help more first-time home buyers purchase a home and build general generational wealth here.

So that's really what the memorandum of understanding does.

It just outlines that partnership between THDA and the city.

To clarify, that funding already exists, it's already been allocated by city council and sitting in a bank account at THDA.

We will be reimbursing, or sorry, sitting in a bank account at EV.

We will be reimbursing THDA for the loans that they do.

So that's why it says in an amount up to $3 million.

We're also making a pathway for participating lenders who are based locally and have their own products.

So THD will THDA will likely not access all of that $3 million, but we're making it available to them kind of on a first come first serve basis.

So each month they'll be sending us a monthly report.

They will be upfronting the money for EPA, and then we will be reimbursing them.

So that's actually a really easy and nice process for us.

We'll keep that money here.

But we're we're really excited about it again.

Questions for her?

Yeah.

Thank you, Megan.

Um Brian Irwin.

So I'm very familiar with THCA.

And under this partnership.

Are there specific zip codes that are identified by THCA and the city that qualify?

And additionally, um is there a term that must be occupied for the um any home that's purchased within the city of Chatty Chattanooga limits can qualify for city program.

So we are there are few changes we've really designed our program to layer very well with THDA.

Um there are a couple of tweaks that we've made.

So for example, they'll go up to 140% of the area median income, and we have a restriction for up to 120% because that's just really what makes sense with our market.

They work in Nashville and Franklin and across the state, so they have a bit of a higher income limit.

Um, and then we have that geographic boundary as well.

So the home must be purchased within the city of Chattanooga.

Um we have a 400,000 purchase price limit.

The loan itself is designed to be a zero percent interest deferred payment, so there's no, it's not non-amortizing, there's no monthly payments, and it's due in full upon sale or cash out refinance.

So it's only due if there's a cash event and the owner will be recouped that.

Otherwise, it will sit in position behind THDA's first mortgage, and people are choosing to access it behind that six thousand dollar um DPA.

Okay.

So the the borrower must qualify for all THDA lending.

So they will need to have a THDA first mortgage and then access.

The way that we've really thought about this funding, again, because we're thinking about both access and sustainability for the program, is how can we come in on the back end and be the gap filler?

What's the gap that someone needs really to reach kind of that distance between what they have and what already exists in the market and homeownership?

And so we think to be responsible stewards of our local dollars, we're gonna come in at the end.

So we're asking first mortgage for THDA product, that would be their great choice home loans.

Then they can bring in that additional THDA down payment assistance.

Our money up to $15,000 will go to cover whatever that gap is remaining.

So that's that's the gap in the down payment then essentially, correct?

So if I've got a X, I mean an X dollar, say $50,000 down payment, whatever it is, whatever they qualify for the balance between that and what the actual amount is is where that 15,000 can go.

Exactly, up to 15.

Okay, so they have to qualify for the loan.

So that when they when they look at the loan and they know what the down payment is and they know they don't have it, how do they qualify for the loan without having the down payment that you're gonna help them with?

So that's what the lender will do.

And if you're having the way that we're running the program again, is we're gonna be relying on lenders.

So you're a participating lender, you're already approved to work with PHDA, you've been through their training, you know what their products are, you know how to calculate that.

We'll be doing an additional training with those lenders.

So any lender that wants to access city.

So they so the lender then knows on the front end what you're doing, so they know you don't have the full down payment to start with.

Correct.

So they will be kind of working within our program guidelines, but the lender is really gonna be the one that's responsible for determining.

So they're basically gonna plug in your number, and that's then that I've got to make up, I gotta have enough between the front end and yours to get to the down payment to make the loan.

Okay.

Is there any way?

Uh, first of all, Henry can I attended a meeting in a community that you guys have been doing, you've been doing a great job explaining this.

Uh, I do have a question about the lender.

Is there any way that we could uh recommend that the lender actively mark as the DPA at the point of sale instead of waiting on somebody to ask for it?

Oh, yeah, we're doing a lot of outreach.

And so we've really been one of the things that we did when we were designing this program is start with the lenders and start that conversation we were thinking about what can this program even look like?

How does this work with what lenders are already doing?

And so we feel that it's really important that they be the front door, and we are working really closely with THDA, who has a fantastic outreach program as well, and with our local lenders to proactively market and advertise, and of course, with our real estate professionals as well, who are such a critical piece of the money access to buyers and make sure that everyone knows that it's available.

From the city side, we'll also be doing a series of information sessions.

So we've got three scheduled kind of end of May, beginning of June, and we're also going to be doing some kind of pulling in our housing counselors and requiring lenders to attend community outreach sessions so that people have an opportunity to have those conversations because we know not everybody knows how to access this, and we see this in addition to just providing funding, it's really a chance to build those relationships with all of the people who are involved.

So it's a great question, and we're on it.

Thank you.

Okay, sir, Chair.

Um Megan, to follow up on your outreach statement.

What is the application process?

I mean, I understand it's somewhat structured in here on what the requirements are, but to apply specifically for the city grant.

Yeah, so what we are trying to do as a city, we are not underwriters.

We don't want to be in the business of doing that.

And one of the reasons this THDA partnership is so fantastic is because it removes a lot of that administrative burden because they are already experts in that.

And so we're really tapping into the process that already exists for them.

And the way that we anticipate this working with THDA lenders is that um it really shouldn't look much different than it already looks.

You advertise the loan, you've got to qualify for the first loan, but really it's just unlocking an additional payment.

But we're not expecting home buyers to submit an additional application to the city.

We don't want to get in the way of that process, especially because we know that home buying, like there's tight timelines on that, it can be quite competitive, and so we don't want to add any additional burdens.

We're working really closely with THDA to make sure that our program guidelines and their program guidelines are aligned, and that those will just be sent straight to their underwriters and their processors on the front end.

So it makes it really clean and really easy for us to administer.

Great information, thank you.

Other questions or clarifications?

You haven't stumped her yet, but just warm out.

I haven't seen you to be stumped too many times.

Okay, one question out here, Megan.

The agreement is with the city and the Tennessee House housing development agencies, not this board.

It should be at the point.

I know we there was a moment we went through and updated the one I got in my package, not necessarily.

Yeah, no, it's time with the change.

Well, there we go.

That's the difference.

As long as he's got that one.

All right, very good.

As long as we got one.

Yeah, and I know that conversation happened.

I thought we talked about that.

All right.

Best effort we had.

Okay.

See no further questions.

All in favor of the resolution, please say aye.

Opposed like signed.

See none.

Resolution is approved.

Under other business, we have a preliminary summary of bonds and projects for the bail or school.

Mr.

Dallas, you want to speak to that?

Yeah, we have one.

Dallas does it run the chief financial office's seat locally to go to school.

We are coming to you day to sort of give you some information about what you're reading in terms of a seat.

We currently have about uh a thousand and one hundred and thirty students enrolled at bail for 890 day students, two appointed boards.

We'd like to increase our boarding program about 100 students to be able to do that.

We need to add documents.

And so what you have before you uh as a proposal for two things.

One uh we would like uh to build a new door that uh will allow us to increase the boarding program from two forty to three hundred and four students in that building.

We'll and we'll sort of retrofit it with equipment.

Uh we're also building A Century plan to uh send steam and water to that building and several others, and we are also doing a five optic project on campus.

In addition to that, we would refinance uh 2017 bonds that this board approved, and that's about 17.9 million of the 61 billion at risk with total questions for Dallas in the refinancing of uh the 2017 bonds.

What was their maturity date?

They would have another 18 years on those got it.

So what is it 26, 36, 46 about 45, 2045?

Yeah, and the numbers guy.

Those are privately held the bonds, yeah.

Hill by the bank.

Oh, the by the bank this one issue would be held by uh the bank as well.

Questions okay, this will come from before you next month.

Yes.

So this is just a don't need a vote for information purposes.

Okay, yes, okay.

All right, thank you all for being here.

Uh anything else to come before the board.

I have I have one question I wanted to ask.

Um the um College Hill courts, yes.

It was my understanding that there are up to seven phases that as they took down parts of it, you know, like say they build phase one, they tear this part down, those people have option of moving over there.

Um, and I can't remember I picked this up, but I'd heard there were people who a did not have a space to go to, and that was concerning because I had heard that the reason it was was done done in phases so that any current resident, I mean they could choose to leave if they wanted to, but that people have been turned away, and part of it was that because of the um mixed income usage that say there's there's 50 people in this building that is being torn down, and there may only be say 25 slots in the new building for those 50 people, and I had great concern that and and I I I don't have any substantiation if you said who, where, what I don't know, but um I I wanted someone from this to McGride Yeah, and make sure and for the next meeting, if they can come in and tell us no what you heard was incorrect because I'm I'm concerned about that.

And and I I I work with with Betsy on those projects.

Okay, so I can assure you that that's incorrect.

So the phase one is going to be completed by the end of this year and then a portion of the people who choose to relocate will be able to relocate to those units in there.

Phase two is under construction after speak and will be ready next year and the remaining ones will be able to move into that one and then as the other phases come online then the uh remaining people in the unit would be able to choose to go into those if they still remain there's not that many people that are still remaining in concho courts proper because of um they either chose to move out and they haven't been wrenching anymore on the meter but they will have enough room for everyone who wants to remote that was what that was my understanding and and I I can't remember where I heard what I heard and it was probably somebody who knew somebody I don't think it was a firsthand person because I would have gotten their name or something but I heard that the okay I I appreciate the clarification because that was our understanding and why we approved the phase because it was so that you know before before one was torn down then they had a place to go.

That's right.

Okay answered my question thank you any bouts have anything at all do you have for next meeting okay all right so we do have a meeting next time for at least for that yes sir next meeting is May 18th May 18th May 18th okay I think it would be in Alaska to enjoy okay nothing else thank you all for being here thank you for for uh participating in this process and we are adjourned I guess I can do all that yep all in favor please say aye