Health education housing facilities board of the city of Chattanooga to order.

You have an agenda before you and uh first thing we want to do is meeting was advertised.

We do have a quorum.

Yes, sir.

We do.

Uh second thing is the approved amendments of the May 18th meeting.

You have received those and have them in front of you.

And a motion for discussion.

Anybody feel it among themselves to make a motion?

Motion to approve.

Okay.

I can't do this alone, guys.

Okay, we have a motion and second.

Any comments, additions, changes to them.

Okay, seeing none.

All in favor approving the May 18th minutes, please say aye.

Opposed, like, signed.

Motion approved.

Um we always invite any persons in the um audience to uh an opportunity to address the board.

Um you have three minutes to address the board, but this is the only time you can do that.

So if anybody has any what I'd like to say, we're welcome to listen and take it into account.

Otherwise, the rest of the meeting will be votes by the board.

Anyone wishing to address us?

Okay.

Uh we have three TEFRA hearings.

It's my understanding that uh item number seven has been withdrawn.

So we have a TEFRA.

Your item five, six eight for TEFRA hearings.

So we should have a presentation uh on those, and these are for information purposes and will not be uh a vote taken, but for you all's purpose understanding what it is to come back.

So the first one is um on Stanley for GAAP, a resolution authorized and subject to certain conditions, the issuance of not to exceed 50 million multifamily housing revenue bonds in one or more series regarding Stanford Graph P1 LP applicant for the purpose of financing the acquisition, construction, and equipping equipping of certain multifamily housing facilities and authorizing exception, the execution and delivery on agreement in connection with the issuance of such bonds.

I see them standing over there.

You want to come up and introduce yourselves and um talk about this?

Sure.

Let me ask you one question.

They have the second one.

Yeah, uh you might give us some information about P1 and P2 on here that are involved.

Yeah, they both have the same address here.

One of them looks like it's a 259 unit multifamily housing facility, and the other one is 223, but both of them have the same address at 7610 standard for gap.

So if you'll just cover both of those, that'd be great.

Gotcha.

Thank you so much for your time.

My name is Joshua Haston.

I'm with LDG Development.

We are a national developer headquartered in Louisville, Kentucky, but I run our Tennessee office.

I'm based in Nashville, but uh my mom lives in Saudi Daisy, so I'm pretty familiar with Chattanooga area.

Um this particular project is a multi-phase project.

So what we're talking about here is uh the beginning phases of what we hope will be a um mixed income development and a very high opportunity community.

So uh this particular project, we're hoping to use what is called the 4% ITEC program, and that program uh helps to preserve affordability and attainability for folks for a long period of time.

Uh in this particular project, we're partnering with the housing authority uh to make sure that we're uh again being uh broad based and and how we're serving and working with the community.

Um we're coming to you guys early for this TEFRA and bond inducement hearing as we work through the beginnings of the financing.

Uh we're working again with the housing authority with HUD and with THDA and how we set this project up.

Uh we're working to serve largely families in this community, uh, where it's it's a mix of ones, twos, threes, and fours across both phases.

And uh with that, it's serving a broad base of incomes.

We know that uh housing costs across the country, but also in Chattanooga have seen uh dramatic increase.

And with the programs that we're using to finance this development, it's hoping to ensure that long-term affordability so folks can stay and prosper in the communities and raise up the socioeconomic ladder because we know that takes a lot uh these days.

So we're we're again hopeful to build this community uh and maintain long-term affordability in in the Hamilton Place small area.

So happy to take any questions you guys have.

So you got 200 259 units in this one.

And their mixed income, and you talked about explain to me a little bit about what you said that will help protect the pricing or the affordability for people.

Great question.

So uh yes, this program that we use is called the low income housing tax credits.

Terrible name, but that's just what's called.

Um, and that particular financing tool, specifically the 4% LITAC.

Uh it requires that um a significant portion of the uh developments hard costs or financed using tax exempt bonds.

Uh and the low-income housing tax credit itself is primarily the equity source.

So developers like myself will apply for tax credits and bonds through THDA.

Which in this case we believe it does.

We will receive those tax credits and tax exempt bonds and then package them for a bank.

That bank purchases those tax credits, and that that action itself becomes the equity in the transaction.

So the bank on paper owns a 99.99% of the the deal in exchange for receiving those tax credits on an annual basis for 10 years.

So how does how does it is it is it income based on affordability?

Yeah, so this particular project is we're we're uh LDG utilizes what's called income averaging.

So we're looking to serve a broad range of incomes across this particular development.

Uh and in doing so, we're able to attract a tenant base that serves a lot of different jobs within the community.

Some of those may be teachers, some of those may be working at the mall.

So it's a broad spectrum of in uh tenants that we can serve, but they're all based on what income they make in terms of what how they qualify to live in the developer.

So are there any um any numbers of units reserved for any income strata, or is it just whoever comes indoor first the first 259 people that qualify based on their own income get a um uh a unit.

So I'm gonna be very careful with how I answer this question because there's certain guidelines with how uh we're able to um either accept or deny uh qualify qualifation or qualified tenants.

So we we vet their applications and make sure that they qualify income-wise.

So that means we're verifying their W-2s, uh their pay steps, all that information to make sure we're in federal compliance.

And then we're not discriminating based on um income from that perspective, as long as they qualify and hit those metrics.

Um again, this is a broad base, so with some of our partnerships with the housing authority, we we may be serving folks that are making down a $20,000 to upwards of $73,000, give or take, if it were built today.

Right.

So it just depends on your household size and your income, but we're not gonna deny you as long as you fit within a certain bracket.

So it's it's more based on what the income what the person comes to the table with as far as income and need versus uh reserving so many per low to moderate income.

Correct.

So uh under the program, I said we're serving income averaging, but the development itself needs to have an average income of 60 percent AMI.

So we're serving some of those that make above 60 percent and some of those that make below 60 percent, but the average is 60 percent.

And that's that's a goal.

So it could be it's a requirement from the federal government.

So so it from an audit standpoint, then you've got to hit that 60 percent target overall, but but his and mine and hers may be totally different as long as you can come in at that number.

Correct.

That's that's okay.

And and also the way that it works is like you know, a one-bedroom household, then they're they're gonna be different than a three-bedroom household.

So it's it's all making sure that that individual household isn't paying more than 30 percent of their income for that specific unit at that specific AMI.

Doesn't that become a it's a bit of a Tetris puzzle and making sure that you're saying in compliance?

I was trying to come up with the word dilemma or challenge, you know.

So it's basically upon you all to as you start talking to people's almost you've got to almost match the match where you're going.

You can't make too many um aberrant pieces because if you get off too far, you could end up not being where you need to be to end.

Correct.

And and again, we also need to remind ourselves that we're we're making a mortgage payment.

So we can't serve too many folks at a uh extremely extremely low income, but we can't serve folks at extremely high income.

So it's it's it is a balance.

Yeah.

Other questions?

Yeah, I'm still where you are with that.

Like, how can we measure that?

Like how how are you gonna be able to measure those things?

Yeah, great question.

So again, we have property managers that are looking at all these information, all the information that our applicants provide, and then there are certain federal guidelines that we have to adhere to.

So there's a lot of property management software that makes sure that we stick within those guidelines.

Uh, and then we have a general idea with how how folks how many folks we can serve at different incomes, and we we build in a little bit of variance within that just to make sure that we're having that flexibility, but also maintaining compliance with the federal government.

Uh you also mentioned earlier uh about affordability, and you said for a long period of time.

What's that number?

Great question.

So under the the uh the timeline with the the LITEC program, Tennessee requires a minimum 30 years of requirement or 30 bears of affordability, but again, with our partnership with the housing authority, the intent is that it's long-term affordability beyond that.

So the hope is that as these restrictions expire, we're actually reapplying and extending those restrictions further.

So that is the goal and and our partnership with the housing authority, and that is their goal as well.

I don't can't speak for the housing authority, but eligible housing according to the for these units to run uh whole thank you.

So that means that they would not be changing the basic formula with which you start.

So in other words, as as long as you your software can keep you at the average of 60 percent, that's the goal for you and for them long term.

So so you would not be looking for after some number of years to change that formula mix, is what you're really saying.

That that's correct, at least for the first 30 years of that deed restriction.

But as the AMI changes that could help you somewhat, correct.

So again, that the if it goes up, then you're formula gets a little breather.

Uh you're not serving the the more needy, but but you have to have them in the mix to keep the overall number where it is.

So I think I understand what you're saying, but I want to make sure that the way that it's quantified again as the whole area comes up.

I mean, yes, that number goes up, but you're still serving that that that median amount.

So if, and we've seen this in Nashville, for example, where I'm based, uh, rents have just skyrocketed in Nashville, right?

And just because a lot of folks from California moved in.

Right.

But because of the restrictions, folks are making way up here, our folks are still usually making that same income.

So even though we can charge higher, that's not the reality of what happens because folks can't charge we can't charge folks more than the 30% of their income.

So even though on paper, you can charge more, the market will not support that.

So for example, in Nashville, an 80% area median income on paper, I could charge like $2,000 a month.

There's no way, no way that we can make that happen.

Our residents can't afford it.

No, I can't afford that.

That's more than my mortgage plan.

So I there that's untenable.

So then which is uh an issue we've come into here is that we've seen the AMI go up, and this board's heard me tell you I got a daughter who who is now moved to worse place than I mean higher cost area than here, had a master's degree, and what she made, she couldn't she couldn't afford the subsidized rate.

And so what you're saying is your formula rate could go up, but the people that so and that's driven by high income people, but there are still people here who can't afford it, so you're saying you almost have to make it affordable for those where they are, what no matter what the formula is.

Correct.

This happens to be it brings it doesn't bring the formula down, so your average may be less than 60 because of how you have to price it to be able to rent it.

Correct.

This is this is a market-based subsidy.

So again, legally we can charge a higher amount, but the market and the tenant cannot afford a lot of those higher rents.

So we've seen that in a lot of our even our existing property in Chattanooga again serves up to 80 percent AMI, we are not charging that max rent because we know that we can't achieve it.

So doesn't that on the front end put a greater challenge on you to be able to build something that is affordable by the what the people make versus what the AMI could be 100%?

So that's that's a lot of the challenge that you see with any affordable development.

But in markets like Chattanooga, for example, this this particular deal would not be possible but for our partnership with the housing authority and but for a piece of the financing in that deal.

So that's that was the same thing for our first deal in this development because at LDG, our mission in our mantra is everybody deserves a quality place to live.

So we're we're building the top tier quality housing to make sure that all those stigmas with affordable housing that have existed are obliterated.

And so and in doing so, you're absolutely right, it makes it hard.

We would we would have loved to be doing multiple deals in Chattanooga every year, but there's a limited amount of funding available to do those sorts of deals.

What you're saying.

For sure, for sure.

Yeah, that there's would not be developable without the LITEC program and without this other piece of financing from the housing authority.

Yes, thank you for being here, Mr.

Chairman.

Um quick question relative to uh phase one and phase two, you'll do phase one, then on the heels of that phase two where they run concurrently.

Great question.

So our intent is to build phase one, lease it up, and then come back and do phase two.

So we're trying to we're a little bit a little bit on the early side with determining the timing of that, but I suspect that phase two won't start until after we finished completely finished phase one.

Okay, thank you.

Talk to me a little bit about the progress of phase one when it comes to leasing is not what you're expecting, what then happens with with phase two.

So we don't expect that to happen, just given what we've seen.

Yeah.

So I I we see that demand, but especially in a in a great submarket like this, close to the mall and uh Volkswagen.

So we we foresee that being a good place to build.

Uh but I think bigger constraints are just on the market itself.

Uh as we've seen elevated interest rates and things like that.

So as we're thinking about inflation and and all the other things that impacted development, those are sort of things that we're looking at.

Can you talk about previous issues that you think you know, you've said that you're in the Chattanooga market already?

Uh what have you seen in previous instances that you you and your group want to correct this time with this project?

Yeah, it's a great question.

So I mean we're we have a large portfolio across the country.

We have over 29,000 apartment units.

Um and every year, every development, we're we're tailoring a little bit to that market and submarket.

Right.

And we're looking at whether that's design uh that we're incorporating or amenities or um additional security, things of that nature.

So I would say lessons learned from our first deal are are what are the levels of security that we're incorporating on the front end.

Uh and so we're we're having way more security cameras, we're having a lot more um uh programming with the residents.

So for example, um we didn't initially program that we were gonna have an art program.

But what we found is that if we were engaging the children in the summers through various art programs, we're we're having much more community impact and and keeping uh those uh the kids engaged and and focused on the right things.

Thank you.

Mr.

Chairman, and um so you'll have on site administrative capacity for for both phases.

For sure, yeah.

So we're we're that is one of our top things that we always have on-site management, and that's part of the scale of the development.

So you see sometimes some of these developments are much smaller.

Uh and when you have that, those smaller developments sometimes they can't afford the on-site management, on-site leasing, on-site security.

That's part of the reason why we have the larger scale is because you can you have those economies that scale that can support the on-site management.

Thank you.

Thank you.

Um just trying to make sure we're dealing with two $50 million bond issuances here, so it's significant amount of bonds.

The one for um, I guess the phase one uh has got 259 units in it.

It looks like multifamily housing.

So any percentage of one bedroom, two bedroom out of those numbers, and I didn't see those in here.

Yeah, so we're still kind of figuring that out as we're uh tailoring our market study and and construction documents as well as like uh uh construct hard cost of construction.

I imagine the bulk of those are going to be twos and threes with smaller amounts of ones and two or ones and fours.

Uh and that's generally what we see across most of our portfolio is as a lot of folks uh that are young families are just being priced out of a lot of markets.

Um so what we've seen in our portfolio is we're averaging 2.2 kids per apartment.

And so uh under HUD guidelines, that that single mom or single dad might have two kids.

Uh and so that tends to be two to two and three-bedroom apartments based on their incomes.

So it's it's Mr.

Chairman.

Uh so it's just a matter for the 36 additional units in the 259 unit, just how they're configured for the most part.

Uh so uh with a lot of these guidelines and especially to your earlier question about timing, we are trying to back into various numbers based on what THDA's program says today versus what it might say a couple years from now.

So we're giving ourselves a little bit of flexibility.

I don't anticipate using the full 50 million dollars at this point, but we just don't know how THDA is gonna change their guidelines.

Okay, thank you.

Any of these three units for purchase or are they all for rental?

All rental.

Okay.

Anybody else?

Um, we need to vote separately.

Um is anybody having questions on the second one while they're up there or but let's see if we can get something about the timing of when all this goes by first off on here.

So we've got at least on the agenda a resolution authorizing the issuance of up to 50 million dollars in bonds here uh regarding this this particular location.

And uh this location, do y'all need us to actually pass a resolution regarding uh the entering into this, or is this just simply the TEPRA hearing today to announce?

So we need both the TEFRA as well as the bond inducement, and that's tied to the timing.

Yes, the uh THDA has historically done a couple different bond rounds per year.

They surprise everyone in the development community by changing that timeline about a month, month and a half before.

Right.

Uh and so we are trying to apply for bonds by June 30th of this year for phase one and two.

But going back to what I previously mentioned about timing, the uh we need the bond inducement to lock in both of those.

Uh, but I don't expect to go come back for a firm commitment um on that, especially that second one until a later date.

Okay, so the resolution that is first on the agenda today is uh actually um authorizing uh subject to certain conditions the issuance of up to 50 million dollars worth of bonds for the purpose of financing the acquisition construction and equipping of this uh unit, which is the P1 standard for GAAP, correct?

Correct, but we need to under THDA guidelines, we're trying to submit both for conditional commitment.

Okay, uh so we need both of those bond inducements.

So there will need to be a vote then on the issuance of those on this for the bonds.

Okay.

So you helped me with the with the procedural part.

So we don't need a vote on the TEFRA, but we do need a vote on the bond.

And be smart to go and vote now, or be smarter to take a vote now on the bond issue for one and then go to two.

Yes, sir.

Since we will not have another meeting before June the 30th.

Correct.

Yes, sir.

Okay.

So then are there any more questions on the TIFRA hearing on uh P1?

Okay.

So um we don't vote on the resolution, so we're gonna need a motion on the bond issue, right?

Yeah, we need to close the TEPRA hearing on P1, then we'll go to the next one here.

Okay.

All right.

So we'll close the close the the TEFRA hearing on P1.

So we're back into the on the agenda, so now we need a motion to approve the bond issue on P1.

So move.

Second.

A motion and second, and this is on the bond issue.

Correct.

So everybody knows, okay.

Any other questions on the issuance of bonds for those?

It's different than TEFRA because you're approving them to get 50 million dollars in bonds.

Okay.

Thank you.

Uh all in favor of the 50 million dollars up to 50 million dollars bond issue on P1, please say aye.

All right.

Opposed, like signed, seeing none.

Okay.

All right.

You got one.

Yeah.

So your authority is not for us to actually give you 50 million dollars, but you can use the bond rate of this entity in order to be able to achieve that.

So just wanted to make sure that was clear on your record.

Yeah.

All right.

Okay.

So now we need to go back to the agenda.

We have a TEFRA hearing on P2.

Yes.

So another up to 50, but he's also on this one is 223 units.

And is there anything that's different in this one at the 30,000 square foot level?

No, not the time it's another project.

A few less units.

Correct.

Okay.

Any questions on the TEFRA hearing on P2?

And as we heard from you a minute ago here, this one will not start until you at least got substantial completion on phase one.

As of now, that is what we're considering, yes.

Okay.

And what timing are we talking about?

Are we talking about years or so?

I suspect this will take about a two-year window to construct.

So two years from when we break round.

Um, and that just depends on how we're able to get together to the rest of the financing.

I would say let's see, probably coming back in 2029.

Okay.

So now I have a question for you.

Yes.

Um what and why would we do a bond hearing on that one if it's not until 29?

Just so he knows he has the approval in his pocket, even though he doesn't or that he has not the approval, but he has our blessing to go to the bonds.

Yes, our blessing to go to the bonds and try to use the city's bond rate, I'm sure, in that regard in their finances.

Does that tie us in by any way if he does or doesn't well?

If he does not complete the project, then he would not have there would be no basis for the issuance of the bonds.

Is that does but does giving him uh our approval on an additional 50 doesn't attract from anybody else on that one, does it?

Well, if if anyone else were going to try to build at Standard for Gap, unless they could get a 50 million dollar bond arrangement at our rate, they would not do so.

So we're helping him tie up that property, right?

Right.

Yes, sir.

Yes, okay.

I want to be luckily, I'm just trying to find out.

You're fine, and and I should say part of this is a is a great question.

Part of this um coming to you for that second phase now is tied to a piece of the financing.

So we need to designate and show to HUD that we are tying up a piece of the financing to make sure that we're keeping a part of that financing, right?

Essentially trying to lock in a rate.

So not a rate of rate.

There's a chunk of the financing that is coming from HUD, and so we're trying we need to show to HUD that we have the ability to close when we get the best.

It shows that he has an approval without uh a rate as long as he can meet the guidelines of the bond, he has our approval.

Correct.

And I should say this is multi-step.

So uh we have traditionally done what are called privately placed bond transactions, so it's not tying up the city's authority.

Uh it's not anyway encumbering you guys or the city.

Uh you guys are um not being held liable for that.

And permit me if I'm wrong, Mr.

Mr.

Roblin.

But it's it's uh in no way is this affecting your you guys and your bond capacity.

This is all tied to uh giving us the ability to apply for those bonds from THDA and you guys are just serving as the conduit issuer.

But should your financial perspective change, it could affect your ability to get them even if we've given you the approval that's correct.

And Mr.

Chairman, I I'm correct in assuming that I know that Mr.

Noblet has fine staff.

We do have protocols in place now to let the county know what these uh and on LITEC, yes, specifically on that end of it.

That uh pilot procedure was just um shown to them here this past week on their own LITEC issues.

Okay, thank you.

Mr.

Ms.

McKelly, any input from the housing authority on this project on here for phase two?

That's the question.

If it's a couple years more.

I will only add to a finer point on the the need for the uh inducement now uh for the HUD purposes has accelerated a number of steps in this financing process, and so it is a material difference uh for our ability to see the to have this approval now as opposed to at some later day.

So uh it makes a difference for the viability of this project.

Right.

Any other questions for the TEFRA hearing?

Does this uh CHA have any uh I guess uh concerns over the numbers of units?

I wondered about that because we're talking about one, two, and three bedroom units here in the case.

Well, no, he's got a he's got some four.

I would just say some four some fours of them.

Yeah, this is that's a fantastic question.

Uh and it we have this site has been shopped by different developers for a number of years, and so this is not a new site to us.

Uh we've heard multiple proposals.

Uh the site is uh conducive to a large-scale development.

Uh, but we've been very sensitive uh to the nature of the development that goes in there.

It's been our belief that this needs to be a mixed income development that serves folks at 30% AMI and below, all the way up to 80% AMI.

Uh so that this is essentially a mix of housing for our most uh uh needy uh and uh folks as well as workforce housing uh to create uh a mix that's just like the community at large.

Uh our goal is to avoid uh creating concentration of poverty, which uh we've done numerous studies and experience has shown us is not a good outcome for our residents, and so the reason that we're behind this project is essentially the mixed income nature.

We are okay with the size as long as we have uh a good income mix.

We've been very successful.

We've talked a lot about mixed income as long as I've been on this board.

Do we have very many successes in our belt under on mixed income versus the other?

We are you know mixed income is a newer tool say over the side of the last decade.

Uh but our initial returns on these uh it's been very satisfactory.

Uh we can actually so we've actually been able to have some actual mixed income.

Well, we absolutely can achieve the mix.

Okay.

That's that uh is not a fall.

Okay.

And as an example, the west side that we're working on after another mixing.

Well, it isn't isn't that's what uh the standard Cousin Thatcher property is the same thing, isn't it?

It isn't the standard Cousin Thatcher thing off of uh yes, that's what that is, right?

Yes, because that was one of the essentially is our model.

Okay, and that's because I knew that was what we tried to go.

That thing's like five years old now.

I knew that would we that was one of our first mixed incomes, that's why I was asking about the success of that.

Oh, that the outcome we've had good outcomes while we're super thing to do.

I just wasn't sure of that.

Yes, sir.

Okay.

Um Ms.

Gober, you got anything for the city at all on here at all?

No?

Okay, we're good.

She hides in the back row, hoping you won't ask her a question.

Okay.

Anything else on TEFRA hearing?

So we'll close the TEFRA hearing, and then we need to go into uh recommendation on a bond issue, another one of up to 50 million dollars.

Chairman motion.

So moved.

Motion second.

Second discussion, questions, comments.

All in favor, please say aye.

Aye.

Opposed, like signed.

Okay.

I'd hit the door if I were you.

Thank you guys so much.

I appreciate it.

No, thank you all.

Thank you both very much.

Okay, uh, we're on item eight.

We have another we better deal with seven first and make sure that everybody oh, I'm sorry, I thought it says to be withdrawn.

Is there anyone here on the standard uh Kensington venture LP bond one?

Yes.

Okay.

Sorry.

I was I was told they weren't gonna do, so I was gonna run the train.

Hi, all uh my name is Tommy Atley.

I'm with Standard Development Partners.

Um we were hoping to go two for two as well, but uh we have to withdraw one.

We couldn't quite make the uh terms work out with the uh with the seller of the of the land for this project.

So we're hoping to go one for one uh on our on our on the item eight.

So uh we had to we found this out uh last minute, so apologize for having that.

No worries.

Okay.

So item seven is withdrawing then at y'all's request.

Yes, please.

Okay.

And I guess you can go on to item eight then.

Yeah, okay.

Item eight, which is also there is this TEFRA hearing uh resolution of the Health Education Housing Facilities Board of the City of Chattanooga, Tennessee relating to the issuance of multifamily housing revenue bonds for an all for an amount not to exceed 31 million to provide financing to standard to standard Brainerd venture LP for the acquisition, construction, and equipping of a multifamily housing facility for low and moderate income citizens to be located at 7453 East Brainerd Road.

Chair would uh entertain a motion for just uh we know we don't need to do that.

So we just did have discussion on this.

You want to walk us through roughly what this is and the number of units, etc.

Certainly.

Um so uh the project is structured uh almost identically to the um at least financed identically to the way that my colleague uh from LDG uh described it.

Um but uh in our case we are focusing on uh family units.

Um we plan to build 131 town homes.

Um they'll be all rental town homes and um targeted with the average AMI of 60 percent AMI.

Um we're working with the housing authority to for part of our financing, uh and they'll be part of the ownership of the uh project as well.

Um the project is in East Brainerd uh on East Brainerd, just past Gunbarrow Road.

Um, and um uh the uh uh proximity it has to a lot of employment centers uh as well as it being a high opportunity area, we think will provide it uh an opportunity to be a successful um uh property to help encourage its residents um sort of work their way out of out of low income and and have more access to opportunity.

So uh what sizes are these?

Are they all the same size or are they gonna be they're all they're all planned to be the same size?

Uh three bedrooms, uh I believe two and a half bathrooms, and um uh there's gonna be a little bit of deviation in the square footage, but the uh it's it's approximately uh 17 to 1900 square feet.

And are these um uh multiple units in the same building?

Are they that's correct?

There will be about six units in each building.

And what do you think that your average base rent will be on these?

Um the average base rent will be at about the 50 percent area median income level.

Um I think we're forecasting that to be uh I'd have to double check the number on that, but that that's the air in the median income.

Yes, I won't hold you to it and you're not putting the minutes.

What do you do you have a uh idea of the range in there?

Yeah, I I think uh the range would be uh somewhere from 900 to uh 1500.

Okay, okay.

Um we're also partnering with the housing authority for project-based vouchers um for this project.

So for families that are of um especially low income, they'll have sort of an income support that will help them afford the rentals of these uh townhome units.

So they're gonna be essentially all basically the same design, maybe a little different square footage, but I don't want to say cookie cutter, but that's from a from a equipping them, you know, that type of thing, you can build right, right.

The plan is to build multiple buildings of very this the same design for uh the purposes of creating a unified experience, but also to economize on construction costs.

Yeah.

Okay.

Questions?

Yes, Mr.

Chairman.

Um, so this location is just the old elementary school there is your headed east on the that's correct.

It's the old East Brainerd uh school school.

Okay, thank you.

And what is your timeline?

So uh we are planning to apply in the June 30th uh application deadline uh for THDA.

Um we hope to hear back from them in the following three months.

Um, and then uh after that it's a manager of sort of tying down the rest of the financing package.

Um the target is to have a financial closing uh by the end of the year, although we have to go through a lengthy HUD process as well.

So that's probably a little ambitious.

So that's our our target is our target is before the end of the year, but um uh to just to break ground on the project.

Okay.

And to confirm again on the 22 buildings of six each, they will all be identical.

Uh from the outside, they'll look the same.

I mean, we may be using different material uh you know, this different color siding to differentiate different buildings.

Uh we haven't got progressed that far in our in our site design.

Um, I said identical, I meant but they'll all be uh furnished in the same way.

You're yeah, not uh bottle townhouse to live in Knoxville when I'm up there.

It's it's the same type of thing.

At least what two-story?

Um I think it's three stories.

Yeah, yeah.

Yeah.

Talking to them, they can cookie cutter them because they know exactly maybe it may vary a little bit on the square footage, but the design is about the same, and they can equip them all.

If you go in one, they all look the same.

Okay, pretty good.

Thank you.

Thank you, Mr.

Chairman.

Other questions?

Do you have any outreach plan for um seniors, veterans, working families instead of the you know the standard leasing thing?

Yeah, I mean, so part of the process for the the HUD financing component is we and um I think I believe with THDA as well as we we have to um enact a tenant outreach program where we partner with institutions, local stakeholders.

So we'll be partnering with the housing authority to spread the word about these units.

Um we'll probably be working with the city as well, um, local community centers, uh, things of that nature to to spread the word about uh the availability of these units.

So rather than it just being marketed on you know apartments.com or or something along those lines, there's there's a more comprehensive community outreach uh in place.

All right, thank you.

Will there be any sort of on-site amenities or anything like that that anybody can like a pool or we we won't have a pool, but we will have a community room, uh a fitness center, uh, and a business center, um, so that people can sort of you know have access to computers or or printers and and things of that nature.

Um, and then we'll have on-site uh leasing and property management staff as as well as um as maintenance.

So um the plan is to have um like a one centralized community space for that that type of thing.

Um and then um since we're targeting families as well.

I I think we have plans for uh a small playground uh and some sort of outdoor amenities.

Okay, because I know living in East Brainerd, we don't have a community recreation center.

We have Heritage Park, which is not far up the road from here from this location.

Um so that's something that it's pretty important having having things for especially younger, younger residents to do that around there.

So keep people occupied and things of that nature.

And and we're well versed in in that sort of stuff.

Um my colleague from LDG mentioned sort of an art program that they have for their residents, and we have a lot of experience sort of uh programming things for for uh for the residents of our communities uh in in our in our properties across the country.

So we'll I'm sure we'll be able to provide you know plenty of opportunities for uh kids to stay active, engage in arts and and uh and other academic pursuits.

Has there been any sort of traffic study?

I know that area is growing.

I drive past it every single day.

Um do we know what sort of impact there may be any sort of things that this development will do to help kind of address that?

Um I can't speak to the finality of the traffic study yet.

I I think that's something that we've been um pursuing, but uh I think the plan is to s um improve joiner road right there next uh that uh the property uh abuts and and sort of have the entrance off there to try to move um residents what as they exit the property uh away from Brainerd and and sort of make a left onto uh onto gun barrel.

Um and and I'm sure that that will be uh uh a part of the uh process as we work with the city on on our final design.

Okay.

Is this developments uh since it's in partnership with HUD as well, still holding to that 30-year or long-term affordability clause?

That's correct.

Okay, yeah.

We will plan to pursue the same um affordability uh restrictions with with the THDA and and as part of our partnership with uh with the housing authority, you know, the intention is to keep this as a as a uh low-income serving uh property for um for the long term.

And do you have excuse me?

Uh do you have any designated uh units for handicap accessibility?

We'll have um uh I believe it's five percent of our units designated uh to be accessible for people with mobility issues and then two percent for uh people with uh visionslash auditory issues.

Okay, great question.

Thank you.

Anybody else seeing none?

Um Closure TEPRONER Yeah, so we'd close the TEFRA and then we do we don't you're doing a preliminary bond resolution here as the title to your documents on here, and that's I assume to be able to get available to be able to file your paperwork here before June 30th, correct?

That's correct.

Yes.

Um as part of the THDA application.

Um we need to you know show the evidence of a TEFRA hearing and uh have a preliminary bond inducement resolution.

Okay, so we close a TEFRA hearing and go back to digital agenda, and we'll need to have a motion to approve a temporary bond issue.

Yes.

So the bond issue would be for 31 up to 31 million dollars.

Motion to approve bond issuance, so second second.

All in favor of the temporary bond issue, please say aye.

Aye opposed, like signed.

Seeing none, you got your one good day for you.

Thank you.

Appreciate it.

Okay, all right, down to nine, right?

Yes, sir.

Okay, uh this is on one west side uh phase three B resolution ratifying the chair's execution of the 2026 multifamily tax exempt bond authority firm commitment letter with the Tennessee Housing Development Agency, TDA, regarding the one West Side Phase 3B LP bond issuance located at 1216 Grove Street, Tennessee in the amount of 12 million dollars.

So this is the third of seven phases, if I'm not mistaken, yes, sir.

And so this is I've I have signed it, so you're ratifying uh me uh giving them an exemption because they need it to get something done.

Right, they needed it before the first of June, and so that's the reason it was signed and executed on the 27th of May.

Okay, so what you're doing is you're ratifying what I've already done just to keep me out on it to start with, but you keep us in line, yes.

Any questions on this one?

Now this is the west side, the corner up there.

Okay, and um so this one allows them to start the bond component on phase three, yes, sir.

Okay, all right, for 12 million dollars, 12 million dollars.

I I would I knew not to ask for 31.

I knew I never could do that.

No, you told me to ask for 50.

I know you come on.

You know me, what okay?

All right.

Uh discussion, questions.

We have a we have a motion, a second.

We don't have a motion second.

Thank you.

So I need to move.

Have a motion, have a motion.

Do I have a second?

Second.

Second.

Now, questions?

Anything else on this one?

All in favor of ratifying.

Yep, I'm just interested in knowing the res people are starting to occupy these spaces already, right?

It's a mindstanding phase one.

If you look, if you this is the one that's up on corner of MLK and up there.

I don't think they're not M OK, it's on yeah, it is.

Yeah.

Well since the GHA project, I can okay.

We are as you can see, we've gone vertical with with phase one and phase two.

We're not uh not occupying the point of occupancy, but we will be uh before phase three starts because phase three is our first phase where we start swinging flow of the existing college reports units, not all of them, but a section.

Uh so we're not leasing yet, but those units will be our select our own schedule, and we should have those available before we start.

Project I'll just have one follow-up question if if I may.

Yes, ma'am.

Um as as the occupancy opens up, are you guys gonna be able to keep track with the returning um residents from that committee?

This is that was that was one of our commitments.

The current residents and returning residents, we're we tracked those con those folks constantly and we're in contact.

Okay, that's great.

Okay, okay.

I brought that up because I'd heard somebody tell me they hadn't.

Yeah, and then I brought it up at the last couple of meetings.

Yeah, I I knew they had not started arcupying them.

So I'm glad you clarified that I didn't know what the schedule was, but I was reassured that everybody who is in College Hill who wants to move can because I'd heard different.

Yeah, no, but that was one everyone who's a College Hill resident has a a right to essentially return.

Right.

Uh uh and that that's been the the right day one.

Okay, sir.

I'm glad you were here because I I didn't know that three was the first one that included demolition, so that's glad we know that.

Okay.

Mr.

Kelly, the what um for our board on that end of it.

Um it's it's actually on highway 27, I believe, uh headed to 24 there.

That's correct.

And the ones that are going up before it's on 27.

Yeah.

If you're going down 27 right before you get to the uh 2440, you can see the new that's it.

Okay, I saw it.

Yeah, that's right.

And all those big units that are going in right now, is that phase two, the ones that are up, it looks like three stories high.

Oh, phase one.

Yeah, phase two is behind those units, which will actually be higher.

on highway 27 I believe uh headed to 24 there's correct and the ones that are going up it's on 27 yeah if you're going down 27 right before you get to the uh 2440 yeah form round you can see the new that's it okay i saw it yeah that's all right and all those big units that are going in right now is that phase two the ones that are up it looks like three stories high phase one phase one phase two is behind those units which will actually be higher uh that's gonna be a structured parking yeah five story uh building oh wow okay right thank you yeah got a motion second any other questions uh on this uh resolution or signature right yes all in favor of ratification please say aye aye those proposed like sign saying none passes okay um busy meeting today other business come before us here for next month so far okay so right now we don't have anything for next month but we'll keep you uh updated yes okay all right chair maintain a motion to adjourn there second second we are adjourned thank you all very much and thank you all for being here and all those who spoke to us