1 00:00:09,309 --> 00:00:15,281 [MUSIC] 2 00:00:15,415 --> 00:00:16,916 -- GOOD MORNING. SEPTEMBER 29th, 3 00:00:16,916 --> 00:00:17,517 2026. SELECT BUDGET COMMITTEE 4 00:00:17,517 --> 00:00:18,485 MEETING WILL COME TO ORDER. IT 5 00:00:18,485 --> 00:00:20,887 IS 9:30 A.M. ON DAN STRAUSS. 6 00:00:20,887 --> 00:00:22,622 CHAIR OF THE COMMITTEE, 7 00:00:22,622 --> 00:00:23,590 COUNCILMEMBER KETTLE, IS EXCUSED 8 00:00:23,590 --> 00:00:24,624 UNTIL HE ARRIVES. CLERK WILL YOU 9 00:00:24,624 --> 00:00:27,327 PLEASE CALL THE ROLL? 10 00:00:27,327 --> 00:00:27,827 -- COUNCILMEMBER RINCK. 11 00:00:27,827 --> 00:00:30,730 -- PRESENT. 12 00:00:30,730 --> 00:00:32,499 -- COUNCILMEMBER RIVERA. 13 00:00:32,499 --> 00:00:32,932 COUNCILMEMBER SAKA. 14 00:00:32,932 --> 00:00:34,100 COUNCILMEMBER FOSTER HERE. 15 00:00:34,100 --> 00:00:37,337 COUNCIL PRESIDENT. 16 00:00:37,337 --> 00:00:37,704 HOLLINGSWORTH. 17 00:00:37,704 --> 00:00:38,004 -- PRESENT. 18 00:00:38,004 --> 00:00:40,573 -- COUNCILMEMBER JUAREZ PRESENT. 19 00:00:40,573 --> 00:00:42,842 COUNCILMEMBER LIN HERE AND CHAIR 20 00:00:42,842 --> 00:00:44,310 STRAUSS HERE. SIX. PRESENT. 21 00:00:44,310 --> 00:00:45,879 -- THANK YOU. ANYONE NOT PRESENT 22 00:00:45,879 --> 00:00:48,114 IS EXCUSED UNTIL THEY ARRIVE. WE 23 00:00:48,114 --> 00:00:49,582 ARE HOPEFULLY GOING TO TAKE 24 00:00:49,582 --> 00:00:52,152 ABOUT A ONE HOUR BREAK TODAY, 25 00:00:52,152 --> 00:00:53,453 MUCH LIKE WE DID YESTERDAY. WE 26 00:00:53,453 --> 00:00:54,921 WILL SEE HOW QUICKLY WE CAN GET 27 00:00:54,921 --> 00:00:57,424 THROUGH PRESENTATIONS. THESE ARE 28 00:00:57,424 --> 00:00:57,957 THE LAST THREE DEPARTMENT 29 00:00:57,957 --> 00:00:59,192 PRESENTATIONS THAT WE ARE HAVING 30 00:00:59,192 --> 00:01:01,127 IN COMMITTEE. THIS IS ALSO THE 31 00:01:01,127 --> 00:01:03,696 LAST DAY THAT DIRECTOR ALI WILL 32 00:01:03,696 --> 00:01:04,864 BE AT THE COMMITTEE TABLE. SO IF 33 00:01:04,864 --> 00:01:06,332 YOU HAVE BURNING QUESTIONS TO 34 00:01:06,332 --> 00:01:08,968 GET ON THE RECORD, TODAY IS THE 35 00:01:08,968 --> 00:01:11,004 DAY. IT'S ALSO A GREAT DAY 36 00:01:11,004 --> 00:01:13,907 BECAUSE IT IS THE OPENING OF THE 37 00:01:13,907 --> 00:01:16,509 PINEHURST LIGHT RAIL STATION 38 00:01:16,509 --> 00:01:18,812 THAT COUNCIL PRESIDENT EMERITUS 39 00:01:18,812 --> 00:01:22,348 FOUGHT VERY HARD TO GET BUILT, 40 00:01:22,348 --> 00:01:24,050 AS WE'RE STILL FIGHTING FOR 41 00:01:24,050 --> 00:01:24,651 GRAHAM STREET AND FOR BOEING 42 00:01:24,651 --> 00:01:26,085 ACCESS FIELD. IT'S A 43 00:01:26,085 --> 00:01:27,053 DEMONSTRATION THAT WHEN YOU 44 00:01:27,053 --> 00:01:30,190 BUILD IT NOW, IT'S CHEAPER THAN 45 00:01:30,190 --> 00:01:31,491 SOMEDAY IN THE FUTURE. IT'S ALSO 46 00:01:31,491 --> 00:01:32,926 MY DAD'S 80th BIRTHDAY 47 00:01:32,926 --> 00:01:34,794 TOMORROW. HAPPY BIRTHDAY DAD. 48 00:01:34,794 --> 00:01:36,262 WITH THAT, WE'VE GOT THREE ITEMS 49 00:01:36,262 --> 00:01:38,798 ON THE AGENDA TODAY. OFFICE OF 50 00:01:38,798 --> 00:01:39,399 HOUSING SEATTLE DEPARTMENT OF 51 00:01:39,399 --> 00:01:40,033 CONSTRUCTION, INSPECTION AND 52 00:01:40,033 --> 00:01:41,968 OFFICE OF PLANNING AND COMMUNITY 53 00:01:41,968 --> 00:01:42,602 DEVELOPMENT. BEFORE WE BEGIN, IF 54 00:01:42,602 --> 00:01:43,770 THERE'S NO OBJECTION, THE 55 00:01:43,770 --> 00:01:45,572 AGENDA WILL BE ADOPTED. HEARING 56 00:01:45,572 --> 00:01:46,272 NO OBJECTION, THE AGENDA IS 57 00:01:46,272 --> 00:01:47,807 ADOPTED. I'M ALREADY RUNNING A 58 00:01:47,807 --> 00:01:50,009 MINUTE LATE WITH THAT CLERK. 59 00:01:50,009 --> 00:01:51,478 WILL YOU READ THE TITLE OF THE 60 00:01:51,478 --> 00:01:52,812 FIRST ITEM INTO THE RECORD? 61 00:01:52,812 --> 00:01:54,747 -- AGENDA ITEM ONE. OFFICE OF 62 00:01:54,747 --> 00:01:55,281 HOUSING FOR BRIEFING AND 63 00:01:55,281 --> 00:01:55,615 DISCUSSION. 64 00:01:55,615 --> 00:01:56,983 -- THANK YOU. WE HAVE DIRECTOR 65 00:01:56,983 --> 00:01:58,151 AND WE'VE GOT VICE CHAIR RIVERA 66 00:01:58,151 --> 00:01:59,219 WITH US AS WELL. WE'VE GOT 67 00:01:59,219 --> 00:02:00,820 DIRECTOR KELLY LARSON, BECKY 68 00:02:00,820 --> 00:02:02,155 GUERRA OF OFFICE OF HOUSING 69 00:02:02,155 --> 00:02:05,458 DIRECTOR ALI PANUCCI. AS USUAL, 70 00:02:05,458 --> 00:02:06,626 DIRECTOR LIZ WHITSON, BACK WITH 71 00:02:06,626 --> 00:02:08,862 US AT THE COMMITTEE TABLE TODAY. 72 00:02:08,862 --> 00:02:11,764 I'M GOING TO TURN IT OVER TO 73 00:02:11,764 --> 00:02:13,099 YOU AND RUN THROUGH YOUR SLIDES. 74 00:02:13,099 --> 00:02:14,167 IF THERE ARE NATURAL STOPPING 75 00:02:14,167 --> 00:02:15,301 POINTS, WE'LL STOP TO TAKE 76 00:02:15,301 --> 00:02:17,103 QUESTIONS. OTHERWISE WE'LL JUST 77 00:02:17,103 --> 00:02:18,138 ROLL RIGHT ON THROUGH IT AND 78 00:02:18,138 --> 00:02:19,906 THEN COUNCILMEMBER FOSTER WILL 79 00:02:19,906 --> 00:02:21,641 OPEN US UP AND CLOSE US OUT. 80 00:02:21,641 --> 00:02:22,475 WITH THAT. OVER TO YOU, 81 00:02:22,475 --> 00:02:24,110 DIRECTOR. AND WE ARE SO EXCITED 82 00:02:24,110 --> 00:02:25,879 TO HAVE YOU AFTER YOUR 83 00:02:25,879 --> 00:02:27,080 CONFIRMATION. WHAT WAS THAT JUST 84 00:02:27,080 --> 00:02:33,386 A WEEK AGO? SO GREEN LIGHT MEANS 85 00:02:33,386 --> 00:02:33,553 GO. 86 00:02:33,553 --> 00:02:35,255 -- THERE WE GO. THANK YOU SO 87 00:02:35,255 --> 00:02:37,323 MUCH FOR HAVING US. THANK YOU. 88 00:02:37,323 --> 00:02:39,259 CHAIR STRAUSS AND 89 00:02:39,259 --> 00:02:39,826 COUNCILMEMBERS. I'M KELLY 90 00:02:39,826 --> 00:02:40,760 LARSON, DIRECTOR OF THE OFFICE 91 00:02:40,760 --> 00:02:43,129 OF HOUSING. I'LL ASK BECKY TO 92 00:02:43,129 --> 00:02:43,563 INTRODUCE HERSELF. 93 00:02:43,563 --> 00:02:44,531 -- AND BECKY GARRETT, DIRECTOR 94 00:02:44,531 --> 00:02:45,598 OF FINANCE FOR THE OFFICE OF 95 00:02:45,598 --> 00:02:49,035 HOUSING. 96 00:02:49,035 --> 00:02:49,569 -- BEFORE GOING INTO THE 97 00:02:49,569 --> 00:02:52,005 PRESENTATION ON OUR 2027 2028 98 00:02:52,005 --> 00:02:52,705 PROPOSED BUDGET. I'D LIKE TO 99 00:02:52,705 --> 00:02:55,141 BEGIN WITH SOME CONTEXT FOR THE 100 00:02:55,141 --> 00:02:57,744 DISCUSSION. IT IS THE VISION OF 101 00:02:57,744 --> 00:02:58,378 THE OFFICE OF HOUSING FOR 102 00:02:58,378 --> 00:03:00,513 EVERYONE TO HAVE A HEALTHY AND 103 00:03:00,513 --> 00:03:01,881 AFFORDABLE HOME. THE OFFICE OF 104 00:03:01,881 --> 00:03:04,050 HOUSING STRIVES TO ACHIEVE THIS 105 00:03:04,050 --> 00:03:06,085 VISION BY INVESTING IN COMMUNITY 106 00:03:06,085 --> 00:03:07,887 PARTNERS TO CREATE AFFORDABLE 107 00:03:07,887 --> 00:03:08,388 HOUSING, PAYING SPECIAL 108 00:03:08,388 --> 00:03:10,123 ATTENTION TO EQUITY AND 109 00:03:10,123 --> 00:03:11,891 DISPLACEMENT PRESSURES, WITH A 110 00:03:11,891 --> 00:03:13,293 FOCUS ON INCREASING HOUSING 111 00:03:13,293 --> 00:03:15,028 OPPORTUNITIES FOR PEOPLE WITH 112 00:03:15,028 --> 00:03:16,229 LOW INCOMES. AS YOU ALL KNOW, WE 113 00:03:16,229 --> 00:03:17,830 ARE LIVING THROUGH MULTIPLE 114 00:03:17,830 --> 00:03:19,933 YEARS OF VERY CHALLENGING 115 00:03:19,933 --> 00:03:21,467 CONDITIONS FOR THE AFFORDABLE 116 00:03:21,467 --> 00:03:23,236 HOUSING SECTOR IN SEATTLE AND 117 00:03:23,236 --> 00:03:25,238 ACROSS THE COUNTRY. THE CURRENT 118 00:03:25,238 --> 00:03:26,239 MARKET IS VOLATILE AND 119 00:03:26,239 --> 00:03:26,839 AFFORDABLE. HOUSING PROVIDERS 120 00:03:26,839 --> 00:03:28,374 ARE OPERATING UNDER HIGH STRESS 121 00:03:28,374 --> 00:03:30,910 AND UNCERTAINTY. COUNTY, STATE 122 00:03:30,910 --> 00:03:32,712 AND FEDERAL FUNDS ARE 123 00:03:32,712 --> 00:03:35,582 OVERSUBSCRIBED AND DECREASING IN 124 00:03:35,582 --> 00:03:37,884 AVAILABILITY. WE EXPERIENCED 125 00:03:37,884 --> 00:03:38,518 WITHDRAWN FEDERAL FUNDING FROM 126 00:03:38,518 --> 00:03:40,386 OUR REGION THROUGH THE LOSS OF 127 00:03:40,386 --> 00:03:42,055 EMERGENCY HOUSING VOUCHERS 128 00:03:42,055 --> 00:03:42,755 VALUED AT $25 MILLION AT THE END 129 00:03:42,755 --> 00:03:46,225 OF LAST YEAR, AND A LACK OF NEW 130 00:03:46,225 --> 00:03:48,595 CONTINUUM OF CARE. COC OPERATING 131 00:03:48,595 --> 00:03:51,230 SUPPORT FOR NEW SUPPORTIVE 132 00:03:51,230 --> 00:03:53,399 HOUSING PROJECTS. WE CONTINUE TO 133 00:03:53,399 --> 00:03:54,200 FACE ONGOING FEDERAL THREATS, 134 00:03:54,200 --> 00:03:57,837 ESPECIALLY WITH THE COC, WHICH 135 00:03:57,837 --> 00:03:58,338 HAS CREATED ADDITIONAL 136 00:03:58,338 --> 00:04:00,073 UNCERTAINTY IN THE SECTOR FOR 137 00:04:00,073 --> 00:04:03,309 SUPPORTIVE HOUSING, IN 138 00:04:03,309 --> 00:04:04,944 PARTICULAR OPERATING COSTS SUCH 139 00:04:04,944 --> 00:04:06,980 AS INSURANCE AND PERSONNEL ARE 140 00:04:06,980 --> 00:04:08,982 INCREASING AND OVERALL COSTS 141 00:04:08,982 --> 00:04:09,482 RELATED TO CONSTRUCTION 142 00:04:09,482 --> 00:04:11,651 MATERIALS, LABOR AND FINANCING 143 00:04:11,651 --> 00:04:13,853 CONTINUE TO RISE. WE ARE FACING 144 00:04:13,853 --> 00:04:16,422 HEAVY COST PRESSURES AS INVESTOR 145 00:04:16,422 --> 00:04:17,924 REQUIREMENTS ARE INCREASING, AND 146 00:04:17,924 --> 00:04:20,393 OTHER FUNDS FOR AFFORDABLE 147 00:04:20,393 --> 00:04:23,696 HOUSING DEVELOPMENT AND 148 00:04:23,696 --> 00:04:24,564 OPERATING ARE DECREASING IN OUR 149 00:04:24,564 --> 00:04:27,100 REGION, INEQUALITY HAS CONTINUED 150 00:04:27,100 --> 00:04:29,769 TO GROW, INCREASING HOME OWNER 151 00:04:29,769 --> 00:04:32,271 HOUSEHOLD INCOMES IN THE 152 00:04:32,271 --> 00:04:34,173 UPPERMOST QUARTILE HAVE 153 00:04:34,173 --> 00:04:34,841 CONTINUED TO PUSH SEATTLE'S AREA 154 00:04:34,841 --> 00:04:39,545 MEDIAN INCOME UPWARD. FROM 2000 155 00:04:39,545 --> 00:04:41,881 TO 2020. SEATTLE'S AM I 156 00:04:41,881 --> 00:04:43,916 INCREASED ON AVERAGE 3% EVERY 157 00:04:43,916 --> 00:04:45,551 YEAR IN THE LAST FIVE YEARS, 158 00:04:45,551 --> 00:04:48,087 SEATTLE'S AMI HAS INCREASED ON 159 00:04:48,087 --> 00:04:50,323 AVERAGE 8% EVERY YEAR. THIS 160 00:04:50,323 --> 00:04:52,925 INCREASING CITYWIDE AREA MEDIAN 161 00:04:52,925 --> 00:04:54,293 INCOME RAISES INCOME, RESTRICTED 162 00:04:54,293 --> 00:04:57,263 RENT LIMITS BEYOND WHAT MANY LOW 163 00:04:57,263 --> 00:04:59,298 INCOME FAMILIES CAN AFFORD. AND 164 00:04:59,298 --> 00:05:01,434 IT'S REALLY CHANGED THE WAY WE 165 00:05:01,434 --> 00:05:05,171 DEFINED DEFINE WHAT IS TRULY 166 00:05:05,171 --> 00:05:05,972 AFFORDABLE HOUSING. AT THE SAME 167 00:05:05,972 --> 00:05:07,540 TIME, A LARGE PERCENTAGE OF THE 168 00:05:07,540 --> 00:05:09,375 O FUNDED PORTFOLIO IS OVER 50 169 00:05:09,375 --> 00:05:12,078 YEARS OLD. THE WEAR AND TEAR OF 170 00:05:12,078 --> 00:05:13,646 DECADES IS BECOMING MORE 171 00:05:13,646 --> 00:05:14,681 DIFFICULT TO PUT OFF TO A FUTURE 172 00:05:14,681 --> 00:05:18,084 YEAR TAKEN ALL TOGETHER, THE 173 00:05:18,084 --> 00:05:19,719 COST OF DEVELOPING AND OPERATING 174 00:05:19,719 --> 00:05:20,353 AFFORDABLE HOUSING IS GROWING, 175 00:05:20,353 --> 00:05:21,654 AND LOCAL FUNDING SOURCES ARE 176 00:05:21,654 --> 00:05:25,324 STRAINED AS WE TRY TO ADDRESS 177 00:05:25,324 --> 00:05:25,958 MULTIPLE CHALLENGES. THROUGH ALL 178 00:05:25,958 --> 00:05:30,329 THIS, THE GOOD NEWS O WILL 179 00:05:30,329 --> 00:05:30,830 CONTINUE DEVELOPING AND 180 00:05:30,830 --> 00:05:32,965 OPERATING AFFORDABLE HOUSING, 181 00:05:32,965 --> 00:05:34,767 PRESERVING, ACQUIRING AND 182 00:05:34,767 --> 00:05:36,502 CONSTRUCTING RENTAL AND FOR SALE 183 00:05:36,502 --> 00:05:37,103 HOMES FOR PEOPLE AND FAMILIES 184 00:05:37,103 --> 00:05:39,772 WITH LOW INCOMES. OUR AGENCY 185 00:05:39,772 --> 00:05:40,873 STAFF AND PARTNERS ARE MOVING 186 00:05:40,873 --> 00:05:42,575 FORWARD WITH AFFORDABLE HOUSING 187 00:05:42,575 --> 00:05:44,410 PROJECTS AT MOUNT BAKER STATION. 188 00:05:44,410 --> 00:05:46,312 LAKE CITY COMMUNITY CENTER AND 189 00:05:46,312 --> 00:05:48,915 MONTLAKE. THESE PROJECTS MET KEY 190 00:05:48,915 --> 00:05:50,283 MILESTONES TO MOVE FORWARD. THIS 191 00:05:50,283 --> 00:05:53,019 YEAR. WE HAD REALLY GREAT 192 00:05:53,019 --> 00:05:53,986 PRESENTATIONS AND MULTIPLE 193 00:05:53,986 --> 00:05:55,755 COUNCIL COMMITTEES, ESPECIALLY 194 00:05:55,755 --> 00:05:56,389 IN HOUSING COMMITTEE WITH CHAIR 195 00:05:56,389 --> 00:05:59,358 FOSTER THESE COMMUNITY 196 00:05:59,358 --> 00:06:00,426 INVESTMENTS WILL MEET THE NEEDS 197 00:06:00,426 --> 00:06:03,329 OF OUR GROWING POPULATION AND 198 00:06:03,329 --> 00:06:05,798 VIBRANT COMMUNITIES THAT FEATURE 199 00:06:05,798 --> 00:06:06,232 ACCESS TO TRANSIT, 200 00:06:06,232 --> 00:06:09,335 NEIGHBORHOODS, SMALL BUSINESSES 201 00:06:09,335 --> 00:06:10,103 AND SERVICES, THE IMPACT AND 202 00:06:10,103 --> 00:06:11,204 PROGRESS OF OUR CAPITAL FUNDING 203 00:06:11,204 --> 00:06:14,040 IS NOW VISIBLE ON OUR PUBLIC 204 00:06:14,040 --> 00:06:15,441 FACING HOUSING DOLLARS AND 205 00:06:15,441 --> 00:06:17,210 ACTION DASHBOARD WAS LAUNCHED 206 00:06:17,210 --> 00:06:18,711 THIS YEAR AND PROVIDES QUARTERLY 207 00:06:18,711 --> 00:06:20,379 UPDATES ON AFFORDABLE HOMES 208 00:06:20,379 --> 00:06:20,947 UNDERWAY AND FUNDED BY THE 209 00:06:20,947 --> 00:06:24,317 OFFICE OF HOUSING. AS OF THE 210 00:06:24,317 --> 00:06:27,353 SECOND QUARTER OF 2026, O HAS 211 00:06:27,353 --> 00:06:28,421 OVER $871 MILLION IN ACTION TO 212 00:06:28,421 --> 00:06:31,557 BUILD AND PRESERVE OVER 7000 213 00:06:31,557 --> 00:06:33,559 AFFORDABLE HOMES, WITH OVER 623 214 00:06:33,559 --> 00:06:35,695 MILLION UNDER CONTRACT PROJECTS 215 00:06:35,695 --> 00:06:43,369 THROUGHOUT THE CITY 216 00:06:43,503 --> 00:06:47,507 OVERALL, THE OFFICE OF HOUSING 217 00:06:47,507 --> 00:06:48,040 PRIORITIES HAVE REMAINED 218 00:06:48,040 --> 00:06:48,941 RELATIVELY CONSISTENT FOR 219 00:06:48,941 --> 00:06:50,410 SEVERAL YEARS AS WE WORK TO 220 00:06:50,410 --> 00:06:52,912 BUILD NEW AND SUPPORT EXISTING 221 00:06:52,912 --> 00:06:54,614 HOUSING, SERVING AS A STEADY AND 222 00:06:54,614 --> 00:06:56,315 RELIABLE FUNDER OF AFFORDABLE 223 00:06:56,315 --> 00:06:57,617 HOMES. IN OUR WORK, WE AIM TO BE 224 00:06:57,617 --> 00:06:59,919 A THOUGHTFUL INVESTMENT PARTNER 225 00:06:59,919 --> 00:07:01,788 THROUGH DYNAMIC MARKET 226 00:07:01,788 --> 00:07:03,623 CONDITIONS AND READY TO PROVIDE 227 00:07:03,623 --> 00:07:04,123 CRITICAL SUPPORT TO THE 228 00:07:04,123 --> 00:07:07,827 AFFORDABLE HOUSING SECTOR. UP 229 00:07:07,827 --> 00:07:09,428 TOP HERE, PROTECTING AND 230 00:07:09,428 --> 00:07:11,798 PRESERVING THE O. FUNDED 231 00:07:11,798 --> 00:07:12,331 PORTFOLIO OF 21,000 HOMES 232 00:07:12,331 --> 00:07:13,533 REMAINS ONE OF OUR HIGHEST 233 00:07:13,533 --> 00:07:15,334 PRIORITIES. BY ENSURING THE LONG 234 00:07:15,334 --> 00:07:17,670 TERM PHYSICAL AND FINANCIAL 235 00:07:17,670 --> 00:07:18,404 SUSTAINABILITY OF OUR PORTFOLIO, 236 00:07:18,404 --> 00:07:21,073 WE ARE WORKING TO STABILIZE 237 00:07:21,073 --> 00:07:23,810 SEATTLE'S AFFORDABLE HOUSING 238 00:07:23,810 --> 00:07:25,244 ECOSYSTEM. OUR TOP PRIORITY IS 239 00:07:25,244 --> 00:07:26,712 TO PROTECT AND PRESERVE 240 00:07:26,712 --> 00:07:28,447 SUPPORTIVE HOUSING, A PROVEN 241 00:07:28,447 --> 00:07:28,881 SOLUTION TO ADDRESS 242 00:07:28,881 --> 00:07:32,118 HOMELESSNESS. APPROXIMATELY 30% 243 00:07:32,118 --> 00:07:33,986 OF THE O PORTFOLIO IS SUPPORTIVE 244 00:07:33,986 --> 00:07:34,587 HOUSING OR PERMANENT HOUSING, 245 00:07:34,587 --> 00:07:36,022 WITH SERVICES INTENDED TO SERVE 246 00:07:36,022 --> 00:07:37,690 PEOPLE EXITING HOMELESSNESS, 247 00:07:37,690 --> 00:07:39,859 LIVING WITH COMPLEX HEALTH 248 00:07:39,859 --> 00:07:42,128 CONDITIONS AND EXTREMELY LOW 249 00:07:42,128 --> 00:07:43,229 INCOMES IN PARTNERSHIP WITH 250 00:07:43,229 --> 00:07:44,697 COUNTY, STATE AND FEDERAL 251 00:07:44,697 --> 00:07:46,632 FUNDERS. SEATTLE SUPPLY OF 252 00:07:46,632 --> 00:07:47,500 SUPPORTIVE HOUSING AND PERMANENT 253 00:07:47,500 --> 00:07:49,769 HOUSING WITH SERVICES HAS 254 00:07:49,769 --> 00:07:52,271 INCREASED STEADILY SINCE 2020. 255 00:07:52,271 --> 00:07:54,507 BETWEEN 2020 AND 2025, OVER 1500 256 00:07:54,507 --> 00:07:55,875 UNITS OF SUPPORTIVE HOUSING WERE 257 00:07:55,875 --> 00:07:57,743 PLACED IN SERVICE. OVER 900 258 00:07:57,743 --> 00:07:59,045 UNITS OF PERMANENT HOUSING WITH 259 00:07:59,045 --> 00:08:00,146 SERVICES WERE PLACED IN SERVICE 260 00:08:00,146 --> 00:08:02,114 IN THE SAME TIME PERIOD. A TOTAL 261 00:08:02,114 --> 00:08:04,417 OF 2400 NEW APARTMENTS FOR 262 00:08:04,417 --> 00:08:06,819 PEOPLE EXITING HOMELESSNESS. 263 00:08:06,819 --> 00:08:07,954 ALTHOUGH THE COST OF BUILDING 264 00:08:07,954 --> 00:08:09,188 LOW INCOME, AFFORDABLE HOUSING 265 00:08:09,188 --> 00:08:10,890 AND SUPPORTIVE HOUSING ARE 266 00:08:10,890 --> 00:08:12,959 SIMILAR, SUPPORTIVE HOUSING 267 00:08:12,959 --> 00:08:15,294 REQUIRES THAT LONG TERM 268 00:08:15,294 --> 00:08:16,195 OPERATING SUBSIDY, WHICH 269 00:08:16,195 --> 00:08:17,730 HISTORICALLY HAS BEEN FUNDED BY 270 00:08:17,730 --> 00:08:19,832 A COMBINATION OF LOCAL AND 271 00:08:19,832 --> 00:08:20,433 FEDERAL FUNDS, INCLUDING THE 272 00:08:20,433 --> 00:08:22,935 COC, LARGELY DUE TO THESE 273 00:08:22,935 --> 00:08:24,170 CURRENT FEDERAL FUNDING RISKS. 274 00:08:24,170 --> 00:08:26,372 WE HAVE INSTALLED SUPPORTIVE 275 00:08:26,372 --> 00:08:27,974 HOUSING PIPELINE IN THE CITY FOR 276 00:08:27,974 --> 00:08:29,976 THE FIRST TIME IN A LONG TIME, 277 00:08:29,976 --> 00:08:33,179 WITHOUT FEDERAL FUNDS AND 278 00:08:33,179 --> 00:08:34,714 AVAILABLE VOUCHERS, LOCAL 279 00:08:34,714 --> 00:08:36,916 FUNDERS WOULD NEED TO IDENTIFY 280 00:08:36,916 --> 00:08:38,784 SOURCES TO FUND ONGOING SERVICE 281 00:08:38,784 --> 00:08:41,254 AND OPERATING COSTS TO BRING NEW 282 00:08:41,254 --> 00:08:42,688 SUPPORTIVE HOUSING ONLINE. THE 283 00:08:42,688 --> 00:08:43,823 OFFICE OF HOUSING DID JUST THAT 284 00:08:43,823 --> 00:08:45,358 IN THE LAST YEAR, PROVIDING 285 00:08:45,358 --> 00:08:46,759 NEARLY ALL THE SERVICE AND 286 00:08:46,759 --> 00:08:48,761 OPERATING SUPPORT FOR THREE NEW 287 00:08:48,761 --> 00:08:51,931 SUPPORTIVE HOUSING PROJECTS O 288 00:08:51,931 --> 00:08:53,900 HAS CONTINUED WORKING CLOSELY 289 00:08:53,900 --> 00:08:55,468 WITH COLLEAGUES ACROSS THE CITY 290 00:08:55,468 --> 00:08:57,703 AND COUNTY TO PLAN FOR AND 291 00:08:57,703 --> 00:08:58,204 MITIGATE THE IMPACTS OF 292 00:08:58,204 --> 00:09:00,740 POTENTIAL FEDERAL FUNDING 293 00:09:00,740 --> 00:09:03,109 REDUCTIONS. IT IS POSSIBLE THAT 294 00:09:03,109 --> 00:09:04,710 MITIGATION FUNDS WILL BE NEEDED 295 00:09:04,710 --> 00:09:07,013 IN 2027 TO RESPOND TO FEDERAL 296 00:09:07,013 --> 00:09:09,215 CUTS AND PROTECT THE CITY'S 297 00:09:09,215 --> 00:09:10,750 SUPPORTIVE HOUSING 298 00:09:10,750 --> 00:09:11,350 INFRASTRUCTURE, ENSURING THAT 299 00:09:11,350 --> 00:09:12,952 OUR MOST VULNERABLE NEIGHBORS DO 300 00:09:12,952 --> 00:09:15,621 NOT LOSE THEIR HOMES. SEATTLE IS 301 00:09:15,621 --> 00:09:19,959 PREPARED NEXT LINE MEETING OUR 302 00:09:19,959 --> 00:09:21,227 SEATTLE HOUSING LEVY, 303 00:09:21,227 --> 00:09:23,429 PRODUCTION, PRESERVATION AND 304 00:09:23,429 --> 00:09:25,264 OPERATIONAL GOALS IS A TOP 305 00:09:25,264 --> 00:09:27,433 PRIORITY. THE 2023 SEATTLE 306 00:09:27,433 --> 00:09:29,268 HOUSING LEVY SPANS A SEVEN YEAR 307 00:09:29,268 --> 00:09:32,572 PERIOD FROM 2024 TO 2030, AND WE 308 00:09:32,572 --> 00:09:34,874 HAVE NEARLY COMPLETED THE THIRD 309 00:09:34,874 --> 00:09:35,875 YEAR OF THE LEVY. O AND OUR 310 00:09:35,875 --> 00:09:38,277 PARTNERS ARE ON TRACK TO ACHIEVE 311 00:09:38,277 --> 00:09:41,447 OUR 2023. SEATTLE HOUSING LEVY 312 00:09:41,447 --> 00:09:43,115 GOALS. OVER THE FIRST TWO YEARS 313 00:09:43,115 --> 00:09:45,952 OF THE LEVY, FROM 2024 TO 2025, 314 00:09:45,952 --> 00:09:48,120 WE'VE INVESTED TO BUILD OR 315 00:09:48,120 --> 00:09:49,956 PRESERVE OVER 1600 AFFORDABLE 316 00:09:49,956 --> 00:09:51,857 RENTAL HOMES, WHICH IS 47% OF 317 00:09:51,857 --> 00:09:54,093 OUR GOAL. WE PROVIDED OPERATING, 318 00:09:54,093 --> 00:09:57,063 MAINTENANCE AND SERVICES SUPPORT 319 00:09:57,063 --> 00:09:58,331 FOR 712 UNITS, WHICH IS 62% OF 320 00:09:58,331 --> 00:10:01,100 OUR GOAL. AND WE HAVE ALSO 321 00:10:01,100 --> 00:10:03,569 ASSISTED OR INVESTED IN NEW, 322 00:10:03,569 --> 00:10:05,771 PERMANENTLY AFFORDABLE, FOR SALE 323 00:10:05,771 --> 00:10:07,673 HOMES FOR 126 HOUSEHOLDS, WHICH 324 00:10:07,673 --> 00:10:09,475 IS 34% OF OUR GOAL. WE ALSO HAVE 325 00:10:09,475 --> 00:10:11,944 LEVY GOALS FOR WEATHERIZATION 326 00:10:11,944 --> 00:10:13,679 AND FOR HOMELESSNESS, PREVENTION 327 00:10:13,679 --> 00:10:15,114 AND HOUSING STABILITY SERVICES. 328 00:10:15,114 --> 00:10:16,082 YOU HEARD MORE ABOUT THAT 329 00:10:16,082 --> 00:10:19,051 YESTERDAY FROM OUR COLLEAGUES IN 330 00:10:19,051 --> 00:10:20,987 HSD. NOW, JUST TO SHARE A FEW 331 00:10:20,987 --> 00:10:23,122 HIGHLIGHTS FROM LAST YEAR. IN 332 00:10:23,122 --> 00:10:24,824 2025, 3 MILLION WAS AWARDED 333 00:10:24,824 --> 00:10:28,628 THROUGH OUR HOMEOWNERSHIP 334 00:10:28,628 --> 00:10:29,295 PROGRAM FOR HABITAT'S RIVERBEND 335 00:10:29,295 --> 00:10:30,296 COMUNIDAD IN SOUTH PARK, WHICH 336 00:10:30,296 --> 00:10:31,697 WILL PROVIDE 22 HOMES WITH TWO 337 00:10:31,697 --> 00:10:32,999 BEDROOMS OR MORE. I HAD A CHANCE 338 00:10:32,999 --> 00:10:34,567 TO VISIT THE CONSTRUCTION SITE A 339 00:10:34,567 --> 00:10:36,402 COUPLE WEEKS AGO WITH HABITAT'S 340 00:10:36,402 --> 00:10:37,536 LEADERSHIP, AND IT WAS INSPIRING 341 00:10:37,536 --> 00:10:39,805 TO SEE THESE NEW HOMES UNDER 342 00:10:39,805 --> 00:10:41,107 CONSTRUCTION AND TOUR THE 343 00:10:41,107 --> 00:10:43,309 NEIGHBORHOOD, SEE MULTIPLE OTHER 344 00:10:43,309 --> 00:10:46,012 HOMEOWNERSHIP INVESTMENTS IN THE 345 00:10:46,012 --> 00:10:48,514 COMMUNITY NEXT. THERE ARE THREE 346 00:10:48,514 --> 00:10:50,349 LEVY SUBSIDY AWARDS MADE IN 347 00:10:50,349 --> 00:10:52,518 2025, INCLUDING AN AWARD TO THE 348 00:10:52,518 --> 00:10:55,788 FIRST 2023 HOUSING LEVY, 349 00:10:55,788 --> 00:10:57,556 SUPPORTIVE HOUSING PROJECT DESCS 350 00:10:57,556 --> 00:10:58,924 BIRCH GROVE THAT OPENED EARLIER 351 00:10:58,924 --> 00:11:01,594 THIS YEAR IN LAKE CITY IN 352 00:11:01,594 --> 00:11:04,797 ADDITION, WE ALSO PROVIDED 353 00:11:04,797 --> 00:11:05,431 PRELIMINARY COMMITMENTS OF LEVY 354 00:11:05,431 --> 00:11:07,033 SUBSIDY TO SEVERAL NEW 355 00:11:07,033 --> 00:11:08,501 AFFORDABLE HOUSING PROJECTS WITH 356 00:11:08,501 --> 00:11:10,236 PORTIONS OF THEIR PROJECT 357 00:11:10,236 --> 00:11:10,870 RESERVED FOR PEOPLE EARNING THE 358 00:11:10,870 --> 00:11:15,608 LOWEST INCOMES BELOW 30% OF AMI, 359 00:11:15,608 --> 00:11:16,208 INCLUDING THE EXCITING MOUNT 360 00:11:16,208 --> 00:11:20,546 BAKER REDEVELOPMENT PROJECT IN 361 00:11:20,546 --> 00:11:22,548 2025, LEVY CAPITAL FUNDS WERE 362 00:11:22,548 --> 00:11:24,984 INVESTED IN FOUR PROJECTS, 363 00:11:24,984 --> 00:11:25,551 INCLUDING TWO NEW EXCITING 364 00:11:25,551 --> 00:11:26,552 DEVELOPMENTS THE LAKE CITY 365 00:11:26,552 --> 00:11:28,854 COMMUNITY CENTER AND BELLWETHERS 366 00:11:28,854 --> 00:11:30,022 SUNBREAK TOWER NEAR THE 367 00:11:30,022 --> 00:11:32,958 UNIVERSITY OF WASHINGTON. WE 368 00:11:32,958 --> 00:11:34,293 FUNDED ONE PRESERVATION PROJECT 369 00:11:34,293 --> 00:11:35,661 DESS MORRISON HOTEL JUST DOWN 370 00:11:35,661 --> 00:11:38,731 THE HILL, AND ONE DEBT 371 00:11:38,731 --> 00:11:40,399 RESTRUCTURING ACQUISITION GMDS 372 00:11:40,399 --> 00:11:43,002 WILLOW CROSSING IN HOLLY PARK 373 00:11:43,002 --> 00:11:44,236 THIS DEBT RESTRUCTURING WAS A 374 00:11:44,236 --> 00:11:45,905 NEW INVESTMENT CATEGORY IN THE 375 00:11:45,905 --> 00:11:48,174 25 NOFA, AND IT HELPS BUILDINGS 376 00:11:48,174 --> 00:11:49,442 AVOID FORECLOSURE, AIMING TO 377 00:11:49,442 --> 00:11:51,877 RESTORE LONG TERM POSITIVE 378 00:11:51,877 --> 00:11:52,778 PROPERTY, CASH FLOW, WHICH PAYS 379 00:11:52,778 --> 00:11:54,513 DOWN THE DEBT ON THESE 380 00:11:54,513 --> 00:11:55,147 BUILDINGS, ALLOWING THE RENTS TO 381 00:11:55,147 --> 00:11:56,982 BE ADJUSTED TO MORE AFFORDABLE 382 00:11:56,982 --> 00:11:58,951 LEVELS TO SERVE LOWER INCOME 383 00:11:58,951 --> 00:12:03,823 HOUSEHOLDS WHILE ALSO ADDRESSING 384 00:12:03,823 --> 00:12:04,824 OPERATING COSTS. WHICH ALSO 385 00:12:04,824 --> 00:12:06,459 PROVIDES INVESTMENT TO SUPPORT A 386 00:12:06,459 --> 00:12:08,360 STABLE, AFFORDABLE HOUSING 387 00:12:08,360 --> 00:12:10,463 SECTOR AND WORKFORCE. FOR MANY 388 00:12:10,463 --> 00:12:12,131 DECADES, THE OFFICE OF HOUSING 389 00:12:12,131 --> 00:12:13,899 PROVIDED A MINIMAL BUT 390 00:12:13,899 --> 00:12:14,500 CONSISTENT OPERATING SUBSIDY 391 00:12:14,500 --> 00:12:16,202 FROM THE SEATTLE HOUSING LEVY. 392 00:12:16,202 --> 00:12:17,803 IN RECENT YEARS, AND WITH THE 393 00:12:17,803 --> 00:12:19,538 2023 HOUSING LEVY, WHICH 394 00:12:19,538 --> 00:12:20,406 SIGNIFICANTLY INCREASED 395 00:12:20,406 --> 00:12:23,342 INVESTMENTS IN OPERATIONS 396 00:12:23,342 --> 00:12:25,845 INCLUDING OMS FOR SUPPORTIVE 397 00:12:25,845 --> 00:12:26,479 HOUSING, WORKFORCE STABILIZATION 398 00:12:26,479 --> 00:12:28,013 TO INCREASE STAFF WAGES AND 399 00:12:28,013 --> 00:12:30,182 WORKER RETENTION IN SUPPORTIVE 400 00:12:30,182 --> 00:12:32,118 HOUSING AND RESIDENT SERVICES 401 00:12:32,118 --> 00:12:33,385 FOR AFFORDABLE HOUSING. TENANTS 402 00:12:33,385 --> 00:12:37,356 IN NEED OF SUPPORT O H ALSO 403 00:12:37,356 --> 00:12:37,990 RESPONDED TO SECTOR CHALLENGES 404 00:12:37,990 --> 00:12:39,759 BY PROVIDING URGENT OPERATING 405 00:12:39,759 --> 00:12:41,927 SUPPORTS IN THE FORM OF FLEXIBLE 406 00:12:41,927 --> 00:12:43,729 GRANTS TO OUR HOUSING PARTNERS 407 00:12:43,729 --> 00:12:48,601 TO FILL THE MOST CRITICAL 408 00:12:48,601 --> 00:12:49,635 OPERATING GAPS. FINALLY, AS O. H 409 00:12:49,635 --> 00:12:52,772 HAS DONE FOR MANY YEARS, WE WILL 410 00:12:52,772 --> 00:12:53,405 CONTINUE TO PRIORITIZE COMMUNITY 411 00:12:53,405 --> 00:12:55,641 DRIVEN PROJECTS AND IDENTIFY 412 00:12:55,641 --> 00:12:58,444 PATHWAYS FOR NEW ORGANIZATIONS 413 00:12:58,444 --> 00:13:00,279 TO SECURE PARTNERSHIPS WHERE 414 00:13:00,279 --> 00:13:03,282 NEEDED AND MOVE PROJECTS FORWARD 415 00:13:03,282 --> 00:13:05,784 FROM THE IDEA TO REALITY. OUR 416 00:13:05,784 --> 00:13:06,418 TEAM HAS PROVIDED DEEP 417 00:13:06,418 --> 00:13:08,921 INVESTMENT CONSULTATION AND 418 00:13:08,921 --> 00:13:11,524 TECHNICAL ASSISTANCE TO NUMEROUS 419 00:13:11,524 --> 00:13:13,726 COMMUNITY BASED ORGANIZATIONS TO 420 00:13:13,726 --> 00:13:14,360 SUPPORT INNOVATIVE HOUSING AND 421 00:13:14,360 --> 00:13:16,495 COMMUNITY PROJECTS SUCH AS EL 422 00:13:16,495 --> 00:13:18,631 CENTRO'S, ROBERTO MAESTAS PLAZA 423 00:13:18,631 --> 00:13:19,899 AND CHIEF SEATTLE CLUBS. ALL. 424 00:13:19,899 --> 00:13:23,469 ALL THIS COMMITMENT TO EQUITY IN 425 00:13:23,469 --> 00:13:25,704 OA INVESTMENTS AND POLICY WILL 426 00:13:25,704 --> 00:13:28,340 REMAIN CONSISTENT. IT'S CRITICAL 427 00:13:28,340 --> 00:13:29,742 THAT INVESTMENTS ARE TARGETED 428 00:13:29,742 --> 00:13:31,310 TOWARD THE MOST READY AND 429 00:13:31,310 --> 00:13:31,911 FEASIBLE PROJECTS, ESPECIALLY 430 00:13:31,911 --> 00:13:34,580 GIVEN CHALLENGING LEVERAGE AND 431 00:13:34,580 --> 00:13:37,183 INVESTOR DYNAMICS AND O. H WILL 432 00:13:37,183 --> 00:13:38,684 HOLD EQUITY AT THE CENTER OF OUR 433 00:13:38,684 --> 00:13:43,589 DECISION MAKING PROCESS. I WANT 434 00:13:43,589 --> 00:13:43,889 TO, BECKY. 435 00:13:43,889 --> 00:13:46,292 -- THANK YOU THE OFFICE OF 436 00:13:46,292 --> 00:13:48,561 HOUSING MAINTAINS STRONG HOUSING 437 00:13:48,561 --> 00:13:51,096 INVESTMENTS IN THE 2728 438 00:13:51,096 --> 00:13:52,998 BIENNIUM. HOWEVER, CHANGES IN 439 00:13:52,998 --> 00:13:55,835 THE 2026 YEAR END SUPPLEMENTAL 440 00:13:55,835 --> 00:13:56,769 WILL IMPACT THE BUDGET. AS WE 441 00:13:56,769 --> 00:13:59,572 WILL DISCUSS ON SUBSEQUENT 442 00:13:59,572 --> 00:14:01,006 SLIDES AS SHOWN IN THE CHART, OA 443 00:14:01,006 --> 00:14:03,042 DOES NOT RECEIVE ANY GENERAL 444 00:14:03,042 --> 00:14:05,544 FUND. THE TWO LARGEST FUND 445 00:14:05,544 --> 00:14:06,812 SOURCES FOR THE OFFICE OF 446 00:14:06,812 --> 00:14:08,347 HOUSING ARE THE HOUSING LEVY AND 447 00:14:08,347 --> 00:14:10,583 THE JUMPSTART PAYROLL EXPENSE 448 00:14:10,583 --> 00:14:14,820 TAX. THE HOUSING LEVY IS VOTER 449 00:14:14,820 --> 00:14:15,321 APPROVED AND REMAINS A 450 00:14:15,321 --> 00:14:17,289 CONSISTENT, RELIABLE FOUNDATION 451 00:14:17,289 --> 00:14:20,960 FOR AFFORDABLE HOUSING IN 452 00:14:20,960 --> 00:14:21,560 SEATTLE, PROVIDING OVER $138 453 00:14:21,560 --> 00:14:22,661 MILLION IN EACH YEAR OF THE 454 00:14:22,661 --> 00:14:26,265 BIENNIUM GIVEN CURRENT REVENUE 455 00:14:26,265 --> 00:14:28,901 FORECASTS, MAYOR WILSON IS 456 00:14:28,901 --> 00:14:32,338 PROPOSING 140 MILLION FOR 2027 457 00:14:32,338 --> 00:14:35,207 AND 139 MILLION FOR 2028 OF 458 00:14:35,207 --> 00:14:37,042 JUMPSTART PET REVENUE TO SUPPORT 459 00:14:37,042 --> 00:14:40,846 OFFICE OF HOUSING PROGRAMS. THIS 460 00:14:40,846 --> 00:14:41,413 SUSTAINS STEADY, AFFORDABLE 461 00:14:41,413 --> 00:14:43,282 HOUSING INVESTMENTS FOR THE 462 00:14:43,282 --> 00:14:45,718 BIENNIUM. THIS COMMITMENT TO 463 00:14:45,718 --> 00:14:48,020 AFFORDABLE HOUSING REPRESENTS 464 00:14:48,020 --> 00:14:50,556 OVER 30% OF TOTAL ANNUAL 465 00:14:50,556 --> 00:14:54,126 JUMPSTART PET REVENUE WHEREAS 466 00:14:54,126 --> 00:14:55,594 HOUSING LEVY FUNDING IS GUIDED 467 00:14:55,594 --> 00:14:58,163 BY THE HOUSING LEVY GOALS. 468 00:14:58,163 --> 00:14:59,431 JUMPSTART PET FUNDING IS 469 00:14:59,431 --> 00:15:01,300 FLEXIBLE AND HAS BEEN USED TO 470 00:15:01,300 --> 00:15:03,669 RESPOND QUICKLY TO EMERGENT 471 00:15:03,669 --> 00:15:06,505 ISSUES IN THE AFFORDABLE HOUSING 472 00:15:06,505 --> 00:15:08,540 SECTOR. FOR EXAMPLE, IT WAS USED 473 00:15:08,540 --> 00:15:09,742 TO LAUNCH THE PSH WORKFORCE 474 00:15:09,742 --> 00:15:11,844 STABILIZATION EFFORT AND TO 475 00:15:11,844 --> 00:15:14,046 PROVIDE URGENT OPERATING SUPPORT 476 00:15:14,046 --> 00:15:16,315 TO PROVIDERS WHEN NEEDED. IT HAS 477 00:15:16,315 --> 00:15:18,150 ALSO BEEN USED TO SUPPLEMENT 478 00:15:18,150 --> 00:15:20,419 LEVY FUNDING TO SUPPORT 479 00:15:20,419 --> 00:15:24,790 AFFORDABLE HOUSING PRODUCTION 480 00:15:24,790 --> 00:15:25,357 AND PRESERVATION. TO ENSURE 481 00:15:25,357 --> 00:15:27,559 PROJECTS ARE COMPLETED AMIDST 482 00:15:27,559 --> 00:15:28,093 INCREASES IN CONSTRUCTION 483 00:15:28,093 --> 00:15:30,262 MATERIALS, INTEREST AND 484 00:15:30,262 --> 00:15:33,132 INSURANCE PREMIUMS JUMPSTART PET 485 00:15:33,132 --> 00:15:34,700 FUNDING HAS ALSO BEEN USED TO 486 00:15:34,700 --> 00:15:36,869 SECURE LONG TERM SERVICE AND 487 00:15:36,869 --> 00:15:39,071 OPERATING CONTRACTS, AND TO 488 00:15:39,071 --> 00:15:42,708 CREATE A MITIGATION FUND FOR 489 00:15:42,708 --> 00:15:46,312 POTENTIAL CONTINUUM OF CARE CUTS 490 00:15:46,312 --> 00:15:48,080 THE MHA PORTION REPRESENTS FEES 491 00:15:48,080 --> 00:15:50,883 THAT OA RECEIVES FROM PROJECTS 492 00:15:50,883 --> 00:15:52,951 THAT SELECT PAYMENT INSTEAD OF 493 00:15:52,951 --> 00:15:56,188 PERFORMANCE TO COMPLY WITH MHA. 494 00:15:56,188 --> 00:15:58,390 FOR MHA, OA AND CBO HAVE MADE 495 00:15:58,390 --> 00:16:00,859 THE DECISION TO HOLD THESE 496 00:16:00,859 --> 00:16:02,828 REVENUE EXPECTATIONS STEADY 497 00:16:02,828 --> 00:16:03,329 WHILE KNOWING THERE ARE 498 00:16:03,329 --> 00:16:06,465 SIGNIFICANT VARIABLES CURRENTLY 499 00:16:06,465 --> 00:16:07,833 AT WORK WITH MHA, THE AMOUNT 500 00:16:07,833 --> 00:16:11,804 AWARDED EACH YEAR IS BASED ON 501 00:16:11,804 --> 00:16:13,706 ACTUAL FUNDS RECEIVED, NOT THE 502 00:16:13,706 --> 00:16:15,474 AMOUNT BUDGETED. SO IF THIS 503 00:16:15,474 --> 00:16:16,975 ACTUALS NUMBER IS HIGHER OR 504 00:16:16,975 --> 00:16:19,645 LOWER THAN WHAT IS BUDGETED IN 505 00:16:19,645 --> 00:16:21,814 2027, OUR 27 NOFA WILL REFLECT 506 00:16:21,814 --> 00:16:26,985 THAT ACTUAL AMOUNT. OTHER FUNDS 507 00:16:26,985 --> 00:16:29,221 HERE REPRESENTS FEDERAL, STATE, 508 00:16:29,221 --> 00:16:31,390 AND LOCAL GRANTS, AS WELL AS 509 00:16:31,390 --> 00:16:33,959 PROGRAM INCOME, INTEREST INCOME, 510 00:16:33,959 --> 00:16:35,995 AND MISCELLANEOUS REVENUES. 511 00:16:35,995 --> 00:16:39,331 ALSO, AS SHOWN, THERE ARE NO 512 00:16:39,331 --> 00:16:40,799 POSITION CHANGES IN THE PROPOSED 513 00:16:40,799 --> 00:16:42,568 BUDGET. WE REMAIN STEADY AT 69 514 00:16:42,568 --> 00:16:49,742 FTE THE NEXT SLIDE HERE SHOWS 515 00:16:49,742 --> 00:16:53,912 HOW THE 2027 TO 28 PROPOSED 516 00:16:53,912 --> 00:16:55,781 BUDGET WILL BE SPENT BY THE 517 00:16:55,781 --> 00:16:56,415 PRIMARY PROGRAMS OF THE OFFICE 518 00:16:56,415 --> 00:17:00,452 OF HOUSING ACROSS ALL FUNDING 519 00:17:00,452 --> 00:17:03,555 SOURCES. MULTIFAMILY CAPITAL 520 00:17:03,555 --> 00:17:06,625 PROPOSED SPENDING IN 2027 IS 235 521 00:17:06,625 --> 00:17:07,893 MILLION. THIS IS FOR THE 522 00:17:07,893 --> 00:17:11,096 DEVELOPMENT AND PRESERVATION OF 523 00:17:11,096 --> 00:17:13,132 MULTIFAMILY RENTAL HOUSING AND 524 00:17:13,132 --> 00:17:15,401 THE LONG TERM STEWARDSHIP AND 525 00:17:15,401 --> 00:17:17,803 MONITORING OF HOUSING IN OHA'S 526 00:17:17,803 --> 00:17:19,805 PORTFOLIO. THIS INCLUDES NEW 527 00:17:19,805 --> 00:17:22,908 CAPITAL PRODUCTION, 528 00:17:22,908 --> 00:17:23,375 REHABILITATION, DEBT 529 00:17:23,375 --> 00:17:25,978 RESTRUCTURING AND ACQUISITION, 530 00:17:25,978 --> 00:17:27,246 DEBT RESTRUCTURING WAS A NEW 531 00:17:27,246 --> 00:17:30,783 CATEGORY IN THE 2025 ANNUAL 532 00:17:30,783 --> 00:17:33,218 NOFA. SPECIFICALLY FOR 533 00:17:33,218 --> 00:17:33,719 PROPERTIES EXPERIENCING 534 00:17:33,719 --> 00:17:35,888 SIGNIFICANT PERFORMANCE 535 00:17:35,888 --> 00:17:38,257 CHALLENGES. THIS FUNDING HELPED 536 00:17:38,257 --> 00:17:38,891 NINE BUILDINGS AVOID FORECLOSURE 537 00:17:38,891 --> 00:17:40,926 AND RESTORED LONG TERM POSITIVE 538 00:17:40,926 --> 00:17:43,262 PROPERTY CASH FLOW, WHICH PAID 539 00:17:43,262 --> 00:17:44,897 DOWN THE DEBT ON THOSE 540 00:17:44,897 --> 00:17:45,931 BUILDINGS, WHICH ALLOWED THE 541 00:17:45,931 --> 00:17:48,133 RENTS TO BE ADJUSTED DOWN TO 542 00:17:48,133 --> 00:17:49,968 MORE AFFORDABLE LEVELS THAT 543 00:17:49,968 --> 00:17:52,805 WOULD SERVE LOWER INCOME 544 00:17:52,805 --> 00:17:55,507 HOUSEHOLDS. O ALSO UNDERWROTE TO 545 00:17:55,507 --> 00:17:57,042 RIGHTSIZE OPERATING COSTS TO 546 00:17:57,042 --> 00:17:58,510 REFLECT THE CURRENT COST, 547 00:17:58,510 --> 00:18:02,181 ENVIRONMENT AND REPLENISH 548 00:18:02,181 --> 00:18:04,383 BUILDING RESERVES. THE AGENCY 549 00:18:04,383 --> 00:18:07,119 SUPPORTS. PROPOSED SPENDING IS 550 00:18:07,119 --> 00:18:10,522 61.4 MILLION. THIS REPRESENTS 551 00:18:10,522 --> 00:18:12,057 SERVICES AND OPERATING SUPPORT 552 00:18:12,057 --> 00:18:13,559 FOR O FUNDED AFFORDABLE HOUSING 553 00:18:13,559 --> 00:18:15,260 PROPERTIES AND FOR THE AGENCIES 554 00:18:15,260 --> 00:18:17,062 THAT OWN AND OPERATE THE 555 00:18:17,062 --> 00:18:19,498 BUILDINGS. THIS INCLUDES 556 00:18:19,498 --> 00:18:21,733 OPERATING AND MAINTENANCE 557 00:18:21,733 --> 00:18:26,238 SUBSIDIES, RESIDENT SERVICES AND 558 00:18:26,238 --> 00:18:26,772 WORKFORCE STABILIZATION. 559 00:18:26,772 --> 00:18:30,309 HOMEOWNERSHIP CAPITAL PROPOSED 560 00:18:30,309 --> 00:18:32,578 SPENDING IS 13.6 MILLION. THIS 561 00:18:32,578 --> 00:18:33,212 REPRESENTS DEVELOPMENT SUBSIDIES 562 00:18:33,212 --> 00:18:35,280 AND LOANS TO CREATE PERMANENTLY 563 00:18:35,280 --> 00:18:37,716 AFFORDABLE HOMES FOR LOW INCOME 564 00:18:37,716 --> 00:18:41,420 HOMEOWNERS WEATHERIZATION AND 565 00:18:41,420 --> 00:18:43,922 HOME REPAIR CAPITAL. PROPOSED 566 00:18:43,922 --> 00:18:45,624 SPENDING IS 8.8 MILLION. THE 567 00:18:45,624 --> 00:18:49,428 WEATHERIZATION PROGRAM FOCUSES 568 00:18:49,428 --> 00:18:50,996 ON ENERGY CONSERVATION, INDOOR 569 00:18:50,996 --> 00:18:53,232 AIR QUALITY AND REDUCING UTILITY 570 00:18:53,232 --> 00:18:55,067 COSTS FOR RENTERS AND HOMEOWNERS 571 00:18:55,067 --> 00:18:57,202 WITH LOW INCOMES. THE HOME 572 00:18:57,202 --> 00:18:59,271 REPAIR PROGRAM ASSISTS 573 00:18:59,271 --> 00:19:00,739 HOMEOWNERS AT OR BELOW 80% AMI 574 00:19:00,739 --> 00:19:02,774 WITH CRITICAL HEALTH AND SAFETY 575 00:19:02,774 --> 00:19:05,043 REPAIRS TO PRESERVE THEIR HOMES. 576 00:19:05,043 --> 00:19:07,713 THESE PROGRAMS OPERATE THROUGH 577 00:19:07,713 --> 00:19:09,548 STATE GRANTS, FEDERAL GRANTS, 578 00:19:09,548 --> 00:19:11,483 SEATTLE CITY LIGHT SUPPORT, AND 579 00:19:11,483 --> 00:19:14,520 THE JUMPSTART PAYROLL EXPENSE 580 00:19:14,520 --> 00:19:16,522 TAX. THE PROPOSED BUDGET FOR 581 00:19:16,522 --> 00:19:18,891 ADMINISTRATION IS 19.4 MILLION. 582 00:19:18,891 --> 00:19:21,293 THIS INCLUDES ALL COSTS RELATED 583 00:19:21,293 --> 00:19:24,263 TO PROGRAMMATIC STAFFING, 584 00:19:24,263 --> 00:19:26,999 LEADERSHIP, PLANNING AND POLICY 585 00:19:26,999 --> 00:19:29,468 CONTRACTING PROGRAM DEVELOPMENT, 586 00:19:29,468 --> 00:19:31,370 FINANCIAL MANAGEMENT, 587 00:19:31,370 --> 00:19:34,740 COMMUNICATIONS, INFORMATION 588 00:19:34,740 --> 00:19:37,142 TECHNOLOGY, CITY CENTRAL COSTS, 589 00:19:37,142 --> 00:19:40,312 ADMINISTRATIVE SUPPORT AND 590 00:19:40,312 --> 00:19:41,847 OPERATING EXPENSES. THE LAST 591 00:19:41,847 --> 00:19:44,550 LINE HERE IS RENTAL ASSISTANCE 592 00:19:44,550 --> 00:19:46,018 THROUGH HSD. O GIVES FUNDING TO 593 00:19:46,018 --> 00:19:48,954 OUR PARTNERS AT HSD TO 594 00:19:48,954 --> 00:19:51,089 ADMINISTER RENTAL ASSISTANCE FOR 595 00:19:51,089 --> 00:19:51,723 PEOPLE EXPERIENCING OR AT RISK 596 00:19:51,723 --> 00:19:54,293 OF EXPERIENCING HOMELESSNESS. 597 00:19:54,293 --> 00:19:56,194 THE 2027 PROPOSED BUDGET FOR 598 00:19:56,194 --> 00:20:00,799 THIS IS 9.4 MILLION. THIS IS 599 00:20:00,799 --> 00:20:01,867 FUNDED BY THE 2023 HOUSING LEVY 600 00:20:01,867 --> 00:20:07,272 AND BY INTEREST EARNINGS ON OSE 601 00:20:07,272 --> 00:20:11,076 FUND BALANCE. THERE WERE NO 602 00:20:11,076 --> 00:20:13,145 SIGNIFICANT POLICY CHANGES 603 00:20:13,145 --> 00:20:17,349 REFLECTED IN THE PROPOSED BUDGET 604 00:20:17,349 --> 00:20:20,385 FROM 2026 TO 20 27. 28 TECHNICAL 605 00:20:20,385 --> 00:20:21,019 ADJUSTMENTS INCLUDE THE REMOVAL 606 00:20:21,019 --> 00:20:25,390 OF ONE TIME 2026 ITEMS, UPDATING 607 00:20:25,390 --> 00:20:27,459 INTEREST, EARNINGS PROJECTIONS 608 00:20:27,459 --> 00:20:30,429 THAT FUND HSD RENTAL ASSISTANCE, 609 00:20:30,429 --> 00:20:32,864 WORK AND ALIGNMENT WITH VARIOUS 610 00:20:32,864 --> 00:20:33,365 GRANTS AND CENTRAL COST 611 00:20:33,365 --> 00:20:39,171 ADJUSTMENTS THE NEXT SLIDE, THE 612 00:20:39,171 --> 00:20:41,740 2026 YEAR END SUPPLEMENTAL 613 00:20:41,740 --> 00:20:43,875 BUDGET ORDINANCE MAKES A ONE 614 00:20:43,875 --> 00:20:46,345 TIME REDUCTION OF $65 MILLION OF 615 00:20:46,345 --> 00:20:49,581 O FUND BALANCE IN THE JUMPSTART 616 00:20:49,581 --> 00:20:52,050 PAYROLL EXPENSE TAX FUND. THIS 617 00:20:52,050 --> 00:20:54,853 PRESERVES THE AMOUNT OF 618 00:20:54,853 --> 00:20:57,055 JUMPSTART FUNDS IN O 27 AND 28 619 00:20:57,055 --> 00:20:59,691 PROPOSED BUDGET AND FUTURE 620 00:20:59,691 --> 00:21:01,760 BUDGETS TO SUPPORT THIS 621 00:21:01,760 --> 00:21:03,462 REALLOCATION, O WILL PURSUE 622 00:21:03,462 --> 00:21:05,897 MULTIPLE STRATEGIES FOR 623 00:21:05,897 --> 00:21:08,100 MANAGING. O MULTIFAMILY RENTAL 624 00:21:08,100 --> 00:21:11,370 FUNDS DEDICATED TO NEW CAPITAL 625 00:21:11,370 --> 00:21:11,937 PROJECTS, INCLUDING FORWARD 626 00:21:11,937 --> 00:21:13,839 COMMITMENTS OF FUTURE YEAR 627 00:21:13,839 --> 00:21:16,475 JUMPSTART PAYROLL EXPENSE TAX. O 628 00:21:16,475 --> 00:21:18,777 IS IDENTIFYING ALL POSSIBLE 629 00:21:18,777 --> 00:21:21,613 ACTIONS TO MANAGE THE $65 630 00:21:21,613 --> 00:21:24,316 MILLION REDUCTION OUR OFFICE, IN 631 00:21:24,316 --> 00:21:27,019 PARTNERSHIP WITH THE MAYOR, IS 632 00:21:27,019 --> 00:21:30,522 PRIORITIZING STEADY AND ONGOING 633 00:21:30,522 --> 00:21:31,123 INVESTMENTS IN ANNUAL HOUSING 634 00:21:31,123 --> 00:21:33,258 OPERATIONS, PERMANENT SUPPORTIVE 635 00:21:33,258 --> 00:21:36,628 HOUSING, HOME OWNERSHIP, 636 00:21:36,628 --> 00:21:39,131 WEATHERIZATION, HOME REPAIR AND 637 00:21:39,131 --> 00:21:42,167 STAFFING. OUR HOUSING LEVY AWARD 638 00:21:42,167 --> 00:21:43,802 COMMITMENTS REMAIN UNCHANGED AND 639 00:21:43,802 --> 00:21:45,604 NO CURRENT PROJECTS ARE BEING 640 00:21:45,604 --> 00:21:48,106 AFFECTED. THE CITY WILL CONTINUE 641 00:21:48,106 --> 00:21:48,807 TO FULFILL ITS COMMITMENTS TO 642 00:21:48,807 --> 00:21:51,510 AWARDED PROJECTS USING A 643 00:21:51,510 --> 00:21:52,978 DIFFERENT SOURCE OR YEAR OF 644 00:21:52,978 --> 00:21:56,214 FUNDING WHERE NECESSARY. 645 00:21:56,214 --> 00:21:58,850 OPERATING CONTRACTS AND CAPITAL 646 00:21:58,850 --> 00:22:00,686 PROJECTS UNDERWAY WILL ALSO NOT 647 00:22:00,686 --> 00:22:03,355 BE NEGATIVELY IMPACTED BY THESE 648 00:22:03,355 --> 00:22:03,989 CHANGES. WE REMAIN COMMITTED TO 649 00:22:03,989 --> 00:22:06,825 ENSURING EXISTING PROJECTS ARE 650 00:22:06,825 --> 00:22:08,860 PRESERVED. OUR PRIMARY GOAL IS 651 00:22:08,860 --> 00:22:12,698 TO BE A STEADY AND RELIABLE 652 00:22:12,698 --> 00:22:15,767 ANCHOR IN THE AFFORDABLE HOUSING 653 00:22:15,767 --> 00:22:16,335 ECOSYSTEM TO MEET EXISTING 654 00:22:16,335 --> 00:22:17,903 OBLIGATIONS AND TO FUND NEW 655 00:22:17,903 --> 00:22:19,237 PROJECTS TO MEET SEATTLE'S 656 00:22:19,237 --> 00:22:27,446 HOUSING NEEDS. THANK YOU. 657 00:22:27,446 --> 00:22:27,913 -- THAT CONCLUDES OUR 658 00:22:27,913 --> 00:22:28,814 PRESENTATION. 659 00:22:28,814 --> 00:22:29,414 -- THANK YOU. DIRECTOR. THANK 660 00:22:29,414 --> 00:22:32,050 YOU VERY MUCH. DIRECTOR NISHI, 661 00:22:32,050 --> 00:22:33,852 ANYTHING TO ADD? DIRECTOR 662 00:22:33,852 --> 00:22:35,987 WHITSON? NOTHING. NO. WONDERFUL. 663 00:22:35,987 --> 00:22:37,055 COUNCILMEMBER FOSTER IS CHAIR OF 664 00:22:37,055 --> 00:22:37,656 THE COMMITTEE OVERSEEING THE 665 00:22:37,656 --> 00:22:38,790 DEPARTMENT. YOU ARE RECOGNIZED. 666 00:22:38,790 --> 00:22:40,292 -- THANK YOU SO MUCH. CHAIR 667 00:22:40,292 --> 00:22:41,460 STRAUSS. GOOD MORNING AND THANK 668 00:22:41,460 --> 00:22:42,894 YOU SO MUCH. DIRECTOR PANUCCI, 669 00:22:42,894 --> 00:22:44,696 GOOD TO SEE YOU AGAIN, DIRECTOR 670 00:22:44,696 --> 00:22:45,864 LARSON, SO HAPPY TO HAVE YOU 671 00:22:45,864 --> 00:22:48,667 HERE. I WILL JUST START OFF, I 672 00:22:48,667 --> 00:22:49,501 DON'T WANT TO DO A TON OF 673 00:22:49,501 --> 00:22:50,569 REMARKS, BUT I WILL JUST SAY 674 00:22:50,569 --> 00:22:52,838 VERY BRIEFLY, MY APPRECIATION 675 00:22:52,838 --> 00:22:54,106 FOR THE LEADERSHIP COMING FROM 676 00:22:54,106 --> 00:22:57,309 YOUR OFFICE IN TERMS OF THE WAY 677 00:22:57,309 --> 00:22:59,010 THAT YOU HAVE BEEN RESPONDING TO 678 00:22:59,010 --> 00:22:59,644 THE ONGOING NEEDS, PARTICULARLY 679 00:22:59,644 --> 00:23:01,947 WHEN IT COMES TO INCREASED COSTS 680 00:23:01,947 --> 00:23:04,649 FOR OPERATING AND THE 681 00:23:04,649 --> 00:23:06,251 THOUGHTFULNESS AND THE 682 00:23:06,251 --> 00:23:07,719 DEDICATION THAT I THINK O HAS 683 00:23:07,719 --> 00:23:09,855 HAD TO BE RESPONSIVE TO WHAT'S 684 00:23:09,855 --> 00:23:10,489 HAPPENING IN THE SECTOR. SO I 685 00:23:10,489 --> 00:23:11,156 FIRST JUST WANT TO START OFF 686 00:23:11,156 --> 00:23:13,358 WITH A NOTE OF APPRECIATION FOR 687 00:23:13,358 --> 00:23:15,527 THAT WORK. I THINK YOU WENT OVER 688 00:23:15,527 --> 00:23:16,661 THE TECHNICAL DETAILS OF IT, BUT 689 00:23:16,661 --> 00:23:19,297 I DO THINK IT JUST DESERVES 690 00:23:19,297 --> 00:23:20,665 UPLIFTING, AS ONE OF MY 691 00:23:20,665 --> 00:23:22,234 COLLEAGUES WOULD WOULD SAY. AND, 692 00:23:22,234 --> 00:23:23,902 AND WHAT I WANT TO ASK YOU TO DO 693 00:23:23,902 --> 00:23:25,670 FOR MY FIRST QUESTION HERE IS TO 694 00:23:25,670 --> 00:23:27,272 JUST SPEAK A LITTLE BIT MORE 695 00:23:27,272 --> 00:23:28,406 BROADLY. THIS IS SOMETHING WE'VE 696 00:23:28,406 --> 00:23:31,276 DISCUSSED IN COMMITTEE IN TERMS 697 00:23:31,276 --> 00:23:32,344 OF THE WHAT'S HAPPENING IN THE 698 00:23:32,344 --> 00:23:34,112 SECTOR, NOT JUST HERE IN 699 00:23:34,112 --> 00:23:35,747 SEATTLE, BUT ACROSS THE COUNTRY. 700 00:23:35,747 --> 00:23:37,849 WHEN IT COMES TO SOME OF THE 701 00:23:37,849 --> 00:23:40,619 CHALLENGES THAT PROVIDERS ARE 702 00:23:40,619 --> 00:23:41,520 FACING AROUND OPERATING COSTS. 703 00:23:41,520 --> 00:23:42,521 TO PUT A SLIGHTLY FINER POINT ON 704 00:23:42,521 --> 00:23:43,755 IT, I KNOW ONE OF THE THINGS 705 00:23:43,755 --> 00:23:45,223 WE'VE TALKED ABOUT IS HOW WE'RE 706 00:23:45,223 --> 00:23:46,992 NOT UNIQUE IN THESE CHALLENGES, 707 00:23:46,992 --> 00:23:48,560 BUT MAYBE WE ARE UNIQUE IN OUR 708 00:23:48,560 --> 00:23:51,596 OUR RESPONSE TO THEM IN TERMS OF 709 00:23:51,596 --> 00:23:52,330 ACTUALLY BEING ABLE TO HAVE A 710 00:23:52,330 --> 00:23:54,599 LITTLE BIT MORE SUCCESS THAN 711 00:23:54,599 --> 00:23:56,668 SOME OTHER REGIONS 712 00:23:56,668 --> 00:24:01,373 -- THANK YOU. CHAIR FOSTER. WE 713 00:24:01,373 --> 00:24:03,575 WERE JUST ON A CALL YESTERDAY 714 00:24:03,575 --> 00:24:04,810 WITH OUR COLLEAGUES FROM THE 715 00:24:04,810 --> 00:24:06,778 ENTERPRISE HIGH COST HOUSING 716 00:24:06,778 --> 00:24:08,446 FORUM, WHICH BRINGS TOGETHER 717 00:24:08,446 --> 00:24:09,548 HOUSING LEADERS FROM MANY CITIES 718 00:24:09,548 --> 00:24:11,049 THAT ARE FACING SOME OF THESE 719 00:24:11,049 --> 00:24:12,851 SAME CHALLENGES THAT WE ARE 720 00:24:12,851 --> 00:24:14,786 FACING. AND ONE OF THE MAJOR 721 00:24:14,786 --> 00:24:16,755 CONCERNS THAT WAS BROUGHT TO OUR 722 00:24:16,755 --> 00:24:17,923 ATTENTION A COUPLE OF YEARS AGO 723 00:24:17,923 --> 00:24:19,424 WAS THE COLLAPSE OF THE SKID ROW 724 00:24:19,424 --> 00:24:22,561 HOUSING TRUST IN LOS ANGELES. 725 00:24:22,561 --> 00:24:23,995 THAT WAS A MAJOR TURNING POINT 726 00:24:23,995 --> 00:24:26,765 IN THE AFFORDABLE HOUSING 727 00:24:26,765 --> 00:24:27,966 SECTOR. THAT CHANGED THE WAY 728 00:24:27,966 --> 00:24:29,501 MANY OF US WERE THINKING ABOUT 729 00:24:29,501 --> 00:24:31,002 OUR PORTFOLIOS, OUR INVESTMENTS, 730 00:24:31,002 --> 00:24:32,571 THE WAY WE WERE MANAGING OUR 731 00:24:32,571 --> 00:24:35,640 ASSETS AND MONITORING OUR 732 00:24:35,640 --> 00:24:37,175 HOUSING. WE'VE MADE A NUMBER OF 733 00:24:37,175 --> 00:24:40,512 CHANGES SINCE THEN, AND WE'VE 734 00:24:40,512 --> 00:24:43,448 MADE INVESTMENTS TO TO BRING 735 00:24:43,448 --> 00:24:44,850 INTO OUR PORTFOLIO TO RESPOND TO 736 00:24:44,850 --> 00:24:46,885 SOME OF THE UNIQUE CIRCUMSTANCES 737 00:24:46,885 --> 00:24:49,187 THAT OUR PARTICULAR MARKET IS 738 00:24:49,187 --> 00:24:51,323 FACING DUE TO THE UNIQUE SUPPLY 739 00:24:51,323 --> 00:24:55,193 THAT HAS COME ONLINE THIS 740 00:24:55,193 --> 00:24:58,230 CONVERGENCE OF AFFORDABILITY AND 741 00:24:58,230 --> 00:25:01,099 MARKET AVERAGE RENTS AT THAT 60% 742 00:25:01,099 --> 00:25:03,668 AMI LEVEL, PARTICULARLY FOR 743 00:25:03,668 --> 00:25:05,937 SMALLER UNITS, AS WELL AS 744 00:25:05,937 --> 00:25:07,272 INCREASING OPERATING COSTS THAT 745 00:25:07,272 --> 00:25:10,208 EVERYONE IS FACING. INCREASING 746 00:25:10,208 --> 00:25:12,944 INSURANCE, INCREASING PERSONNEL, 747 00:25:12,944 --> 00:25:14,446 HEALTH CARE BENEFITS IS A BIG 748 00:25:14,446 --> 00:25:16,281 COST DRIVER THAT A LOT OF OUR 749 00:25:16,281 --> 00:25:17,782 ORGANIZATIONS ARE FACING. IT'S 750 00:25:17,782 --> 00:25:19,184 REALLY, REALLY SIGNIFICANT. SO 751 00:25:19,184 --> 00:25:21,486 WE'RE JUST SEEING A LOT OF 752 00:25:21,486 --> 00:25:22,921 THESE COSTS INCREASE. AND 753 00:25:22,921 --> 00:25:24,522 BECAUSE OF THE UNIQUE SITUATION 754 00:25:24,522 --> 00:25:26,992 THAT WE ARE FACING HERE, WHERE 755 00:25:26,992 --> 00:25:28,126 WE'VE REALLY FOCUSED ON UNIT 756 00:25:28,126 --> 00:25:29,794 PRODUCTION, WHICH IS A VERY 757 00:25:29,794 --> 00:25:33,465 LOFTY GOAL, AND IT'S A STRONG 758 00:25:33,465 --> 00:25:34,766 AREA OF FOCUS. IT MAKES A LOT OF 759 00:25:34,766 --> 00:25:37,402 SENSE. WE HAVE A SIGNIFICANT GAP 760 00:25:37,402 --> 00:25:38,703 IN IN WHAT WE NEED FOR 761 00:25:38,703 --> 00:25:41,006 AFFORDABLE HOUSING IN OUR CITY, 762 00:25:41,006 --> 00:25:43,909 AND WE'VE REALLY FOCUSED ON 763 00:25:43,909 --> 00:25:45,477 BUILDING MORE APARTMENTS OVER 764 00:25:45,477 --> 00:25:47,178 TIME. THE AREA MEDIAN INCOME, 765 00:25:47,178 --> 00:25:49,180 RENT LIMITS THAT WE WERE 766 00:25:49,180 --> 00:25:50,649 ESTABLISHING FOR MANY OF THOSE 767 00:25:50,649 --> 00:25:52,584 APARTMENTS GREW OUT OF STEP, AND 768 00:25:52,584 --> 00:25:54,819 THAT REQUIRED US TO RECONSIDER 769 00:25:54,819 --> 00:25:55,787 OUR INVESTMENTS AND HOW WE COULD 770 00:25:55,787 --> 00:26:02,027 COME IN AND SUPPORT 771 00:26:02,027 --> 00:26:02,661 ORGANIZATIONS THAT WERE FACING A 772 00:26:02,661 --> 00:26:03,295 SITUATION WHERE EITHER THEY ARE 773 00:26:03,295 --> 00:26:04,129 BEARING A BURDEN IN ORDER TO 774 00:26:04,129 --> 00:26:04,696 SUPPORT TENANTS BELOW THAT 775 00:26:04,696 --> 00:26:05,764 CANNOT MEET THE RENTS THAT 776 00:26:05,764 --> 00:26:09,100 THEY'RE EXPECTING TO CHARGE, OR 777 00:26:09,100 --> 00:26:10,902 THE THE RENTERS ARE BEARING THE 778 00:26:10,902 --> 00:26:12,370 BURDEN BECAUSE THEY CANNOT BEAR 779 00:26:12,370 --> 00:26:13,438 THOSE RENTS THAT WE ARE CHARGING 780 00:26:13,438 --> 00:26:16,141 IN SOME OF OUR AFFORDABLE 781 00:26:16,141 --> 00:26:17,075 HOUSING PROJECTS, PROBABLY A 782 00:26:17,075 --> 00:26:18,476 COMBINATION OF BOTH OF THOSE 783 00:26:18,476 --> 00:26:20,211 THINGS IS HAPPENING IN MOST 784 00:26:20,211 --> 00:26:23,114 PLACES. IN ORDER TO BRING 785 00:26:23,114 --> 00:26:27,152 SUPPORT, WE HAVE TRIED SEVERAL 786 00:26:27,152 --> 00:26:28,620 INVESTMENT TOOLS. ONE WAS A 787 00:26:28,620 --> 00:26:30,055 MAJOR INVESTMENT OF URGENT 788 00:26:30,055 --> 00:26:31,523 OPERATING SUPPORT. SO ABOUT $40 789 00:26:31,523 --> 00:26:34,192 MILLION OF URGENT OPERATING 790 00:26:34,192 --> 00:26:35,293 STABILIZATION WAS ADDED TO OUR 791 00:26:35,293 --> 00:26:37,562 PORTFOLIO OVER THE LAST TWO 792 00:26:37,562 --> 00:26:39,798 YEARS. THIS INCLUDED A PORTION 793 00:26:39,798 --> 00:26:42,334 SET ASIDE FOR PORTFOLIO 794 00:26:42,334 --> 00:26:43,301 PRESERVATION PLANNING. AND THAT 795 00:26:43,301 --> 00:26:44,836 EFFORT IS REALLY NOW JUST 796 00:26:44,836 --> 00:26:48,173 KICKING OFF. WE'VE SELECTED 797 00:26:48,173 --> 00:26:48,807 SOME PROVIDERS TO ENGAGE IN THAT 798 00:26:48,807 --> 00:26:49,774 EFFORT. WE'VE SELECTED 799 00:26:49,774 --> 00:26:50,842 CONSULTANTS TO PAIR THEM WITH. 800 00:26:50,842 --> 00:26:52,811 THEY WILL BEGIN A YEAR LONG 801 00:26:52,811 --> 00:26:54,412 PROCESS OF REALLY DIVING DEEP 802 00:26:54,412 --> 00:26:56,381 INTO THEIR PORTFOLIOS, THEIR 803 00:26:56,381 --> 00:26:58,116 SPECIFIC NEEDS, AND LOOKING AT 804 00:26:58,116 --> 00:26:59,451 HOW THEY CAN RECOMMEND AND 805 00:26:59,451 --> 00:27:02,087 INFORM SOME OF OUR STRATEGIES 806 00:27:02,087 --> 00:27:04,255 GOING FORWARD. WE HAVE ALSO 807 00:27:04,255 --> 00:27:06,758 TESTED THIS NEW CAPITAL STRATEGY 808 00:27:06,758 --> 00:27:08,126 DEBT RESTRUCTURING THAT HAS 809 00:27:08,126 --> 00:27:09,761 REALLY COME IN TO SUPPORT SOME 810 00:27:09,761 --> 00:27:10,895 OF THESE PROJECTS THAT I 811 00:27:10,895 --> 00:27:13,198 MENTIONED EARLIER THAT WE'VE 812 00:27:13,198 --> 00:27:15,300 FUNDED MORE RECENTLY, OFTEN HAVE 813 00:27:15,300 --> 00:27:17,302 A HIGHER PROPORTION OF 60% AMI 814 00:27:17,302 --> 00:27:19,104 STUDIOS AND HAVE THIS 815 00:27:19,104 --> 00:27:21,072 DIFFERENTIAL AND THIS PROBLEM 816 00:27:21,072 --> 00:27:22,774 WITH THE RENT EXPECTATIONS AND 817 00:27:22,774 --> 00:27:24,509 THE TENANTS WHO ARE LIVING 818 00:27:24,509 --> 00:27:26,211 THERE. SO THE DEBT RESTRUCTURING 819 00:27:26,211 --> 00:27:28,146 ALLOWS US TO BUY DOWN THOSE 820 00:27:28,146 --> 00:27:29,647 RENTS AND PAY OFF PRIVATE DEBT 821 00:27:29,647 --> 00:27:32,717 TO PROVIDE SOME MORE CUSHION FOR 822 00:27:32,717 --> 00:27:38,123 THOSE OPERATORS. AND IT HELPS IN 823 00:27:38,123 --> 00:27:39,724 A BROADER PORTFOLIO FOR A 824 00:27:39,724 --> 00:27:41,292 PROVIDER, PARTICULARLY, WE 825 00:27:41,292 --> 00:27:42,293 INVESTED IN SOME BELLWETHER 826 00:27:42,293 --> 00:27:43,595 PROJECTS. FOR EXAMPLE, THEY'RE 827 00:27:43,595 --> 00:27:45,597 ONE OF OUR LARGEST PROVIDERS IN 828 00:27:45,597 --> 00:27:48,033 THE CITY. AND WHEN BELLWETHER 829 00:27:48,033 --> 00:27:50,802 HAS SEVERAL BUILDINGS THAT ARE 830 00:27:50,802 --> 00:27:52,137 NEGATIVE CASH FLOW THAT DRAGS 831 00:27:52,137 --> 00:27:53,938 DOWN THEIR ENTIRE ORGANIZATION. 832 00:27:53,938 --> 00:27:55,407 SO WHEN WE COULD BRING IN THESE 833 00:27:55,407 --> 00:27:57,175 DEBT RESTRUCTURING SUPPORTS FOR 834 00:27:57,175 --> 00:27:58,643 SOME OF BELLWETHERS CAPITAL 835 00:27:58,643 --> 00:28:00,078 PROJECTS THAT WERE REALLY 836 00:28:00,078 --> 00:28:01,546 STRUGGLING, IT LIFTS UP THE REST 837 00:28:01,546 --> 00:28:02,580 OF THEIR PORTFOLIO SO THEY CAN 838 00:28:02,580 --> 00:28:05,050 FOCUS ON OTHER THINGS. THEY 839 00:28:05,050 --> 00:28:07,252 STILL HAVE SOME STRUGGLING 840 00:28:07,252 --> 00:28:07,719 PROPERTIES, BUT THESE 841 00:28:07,719 --> 00:28:08,420 INVESTMENTS HAVE BEEN REALLY, 842 00:28:08,420 --> 00:28:09,387 REALLY HELPFUL FOR THE KEY 843 00:28:09,387 --> 00:28:10,588 PROPERTIES THAT WE'VE BEEN ABLE 844 00:28:10,588 --> 00:28:14,893 TO INVEST IN. AND THERE WERE 845 00:28:14,893 --> 00:28:15,393 OTHERS THAT WERE MADE. 846 00:28:15,393 --> 00:28:17,562 -- THANK YOU SO MUCH. THAT WAS 847 00:28:17,562 --> 00:28:18,196 REALLY HELPFUL. I ACTUALLY WANT 848 00:28:18,196 --> 00:28:18,997 TO STAY HERE FOR JUST A SECOND, 849 00:28:18,997 --> 00:28:19,898 BECAUSE I KNOW THIS IS SOMETHING 850 00:28:19,898 --> 00:28:20,832 WE'VE TALKED ABOUT A GOOD 851 00:28:20,832 --> 00:28:22,734 AMOUNT IN COMMITTEE. AND I THINK 852 00:28:22,734 --> 00:28:23,835 SOMETIMES WHEN WE I'LL SAY WHEN 853 00:28:23,835 --> 00:28:25,403 THE PUBLIC HEARS THE WORDS DEBT 854 00:28:25,403 --> 00:28:27,372 RESTRUCTURING, YOU MIGHT GET 855 00:28:27,372 --> 00:28:28,306 SORT OF A GLASSY EYED LOOK, OR 856 00:28:28,306 --> 00:28:29,808 MAYBE SOMEBODY REALLY TAPS IN, 857 00:28:29,808 --> 00:28:32,343 YOU KNOW, I DON'T KNOW. BUT I 858 00:28:32,343 --> 00:28:33,478 THINK WHAT'S REALLY IMPORTANT 859 00:28:33,478 --> 00:28:34,746 HERE IS THE DISTINCTION THAT YOU 860 00:28:34,746 --> 00:28:36,247 JUST MADE, ESPECIALLY GIVEN HOW 861 00:28:36,247 --> 00:28:38,283 YOU STARTED OFF YOUR 862 00:28:38,283 --> 00:28:39,951 PRESENTATION, WHICH I ALWAYS 863 00:28:39,951 --> 00:28:40,585 APPRECIATE YOU GROUNDING US AND 864 00:28:40,585 --> 00:28:42,821 LIKE, WHAT IS AFFORDABILITY WHEN 865 00:28:42,821 --> 00:28:45,623 WE TALK ABOUT AMI? SO WE'VE SEEN 866 00:28:45,623 --> 00:28:48,093 THIS SIGNIFICANT INCREASE IN AMI 867 00:28:48,093 --> 00:28:50,361 IN OUR REGION AS WE'VE WELCOMED 868 00:28:50,361 --> 00:28:51,262 NEW NEIGHBORS, OR WE'VE HAD 869 00:28:51,262 --> 00:28:52,297 PEOPLE WITH HIGHER INCOMES COME 870 00:28:52,297 --> 00:28:54,299 IN AND WE SEE THIS AMI GO UP, 871 00:28:54,299 --> 00:28:55,433 UP, UP, AND AT THE SAME TIME, 872 00:28:55,433 --> 00:28:58,169 WE'VE GOT PROJECTS THAT ARE IN 873 00:28:58,169 --> 00:29:00,004 DEVELOPMENT. SO MAYBE SOMETHING 874 00:29:00,004 --> 00:29:01,506 COMES ONLINE AND WE'RE ASSUMING 875 00:29:01,506 --> 00:29:03,041 THERE'S GOING TO BE ONE BEDROOM 876 00:29:03,041 --> 00:29:05,009 UNITS THAT ARE AT 60% AMI. AND I 877 00:29:05,009 --> 00:29:06,878 THINK WHAT I WANT TO HIGHLIGHT 878 00:29:06,878 --> 00:29:08,346 IS THERE'S TWO THINGS THAT ARE 879 00:29:08,346 --> 00:29:09,647 SORT OF HAPPENING HERE. ONE 880 00:29:09,647 --> 00:29:12,083 WHERE IN SOME CASES, THAT 60% 881 00:29:12,083 --> 00:29:15,887 AMI UNIT IS COMPARABLE TO A 882 00:29:15,887 --> 00:29:17,889 MARKET RATE RENT. AND SO MY 883 00:29:17,889 --> 00:29:18,456 FIRST QUESTION, AND THIS IS 884 00:29:18,456 --> 00:29:19,624 GOING TO BE A LITTLE BIT OF A 885 00:29:19,624 --> 00:29:21,059 LONGER STATEMENT. SO MY FIRST 886 00:29:21,059 --> 00:29:22,293 QUESTION IS IF YOU CAN JUST SORT 887 00:29:22,293 --> 00:29:23,795 OF TEASE THAT OUT FOR US A 888 00:29:23,795 --> 00:29:26,131 LITTLE BIT, BECAUSE IT'S ALSO MY 889 00:29:26,131 --> 00:29:27,098 UNDERSTANDING THAT'S NOT ACROSS 890 00:29:27,098 --> 00:29:28,967 THE BOARD THAT HAPPENS IN 891 00:29:28,967 --> 00:29:31,236 STUDIOS AND ONE BEDROOMS IN SOME 892 00:29:31,236 --> 00:29:32,303 AREAS OF THE CITY. SO I'LL ASK 893 00:29:32,303 --> 00:29:32,971 YOU TO SPELL THAT OUT A LITTLE 894 00:29:32,971 --> 00:29:34,172 BIT MORE. AND THEN THE SECOND 895 00:29:34,172 --> 00:29:36,941 PART, IN TERMS OF THE DEBT 896 00:29:36,941 --> 00:29:37,542 RESTRUCTURING, AND AGAIN, THE 897 00:29:37,542 --> 00:29:38,176 WORK THAT I THINK YOU ALL HAVE 898 00:29:38,176 --> 00:29:39,844 DONE, THAT'S REALLY IMPORTANT IS 899 00:29:39,844 --> 00:29:42,213 THAT IN SOME CASES, YOU'VE 900 00:29:42,213 --> 00:29:44,516 ACTUALLY BEEN ABLE TO BUY DOWN 901 00:29:44,516 --> 00:29:46,885 THOSE RENTS TO GO FROM 60% TO 902 00:29:46,885 --> 00:29:48,620 30%, WHICH MAKES WHICH SORT OF 903 00:29:48,620 --> 00:29:50,255 SHIFTS THE CALCULATION. SO IF 904 00:29:50,255 --> 00:29:51,456 YOU CAN JUST SPEAK TO THOSE IN A 905 00:29:51,456 --> 00:29:52,524 LITTLE BIT MORE DETAIL, AGAIN, I 906 00:29:52,524 --> 00:29:54,859 KNOW WE'VE TALKED ABOUT THIS IN 907 00:29:54,859 --> 00:29:55,493 COMMITTEE, BUT FOR MY COLLEAGUES 908 00:29:55,493 --> 00:29:56,094 WHO AREN'T ON THE HOUSING 909 00:29:56,094 --> 00:29:57,796 COMMITTEE, I WANT TO JUST MAKE 910 00:29:57,796 --> 00:29:59,397 SURE THAT WE BRING DEBT 911 00:29:59,397 --> 00:30:00,031 RESTRUCTURING TO LIFE A LITTLE 912 00:30:00,031 --> 00:30:01,799 BIT MORE, BECAUSE I THINK YOU 913 00:30:01,799 --> 00:30:03,401 ALL HAVE TAKEN REALLY 914 00:30:03,401 --> 00:30:07,806 SIGNIFICANT STEPS IN THIS AREA 915 00:30:07,806 --> 00:30:09,440 -- THANK YOU. SO THAT IS RIGHT. 916 00:30:09,440 --> 00:30:10,909 AS AREA MEDIAN INCOME HAS 917 00:30:10,909 --> 00:30:13,912 INCREASED IN THE CITY, WE HAVE 918 00:30:13,912 --> 00:30:14,946 SEEN MORE AND MORE OVERLAP 919 00:30:14,946 --> 00:30:16,981 BETWEEN VERY SMALL APARTMENTS 920 00:30:16,981 --> 00:30:19,284 THAT ARE IN THE MARKET, NOT 921 00:30:19,284 --> 00:30:24,355 REGULATED AND ARE 60% REGULATED. 922 00:30:24,355 --> 00:30:25,323 STUDIOS IN PARTICULAR, IN MANY 923 00:30:25,323 --> 00:30:25,924 NEIGHBORHOODS THROUGHOUT THE 924 00:30:25,924 --> 00:30:29,294 CITY. NOT ALL NEIGHBORHOODS. WE 925 00:30:29,294 --> 00:30:29,894 PARTICULARLY SEE THIS IN THE 926 00:30:29,894 --> 00:30:32,463 SOUTH END, WHERE A 60% STUDIO 927 00:30:32,463 --> 00:30:34,332 RENT IS ACTUALLY ABOVE MARKET. 928 00:30:34,332 --> 00:30:37,001 IT'S NOT EVEN AT MARKET. IT IS 929 00:30:37,001 --> 00:30:38,136 ABOVE MARKET. WE HAVE A COUPLE 930 00:30:38,136 --> 00:30:39,037 OF NEIGHBORHOODS LIKE THIS 931 00:30:39,037 --> 00:30:40,872 THROUGHOUT THE CITY, WHERE OUR 932 00:30:40,872 --> 00:30:42,540 60% STUDIO RENT IS ABOVE MARKET 933 00:30:42,540 --> 00:30:44,509 FOR STUDIOS. THIS HAS BEEN A 934 00:30:44,509 --> 00:30:47,078 REAL BIG CHANGE FOR EVERYBODY 935 00:30:47,078 --> 00:30:48,179 WORKING IN THE HOUSING MARKET 936 00:30:48,179 --> 00:30:49,681 OVER THE LAST FIVE YEARS. IN 937 00:30:49,681 --> 00:30:51,716 SEATTLE, YOU OFTEN WOULD ALWAYS 938 00:30:51,716 --> 00:30:56,287 SAY 80% OF AMI IS AFFORDABLE 939 00:30:56,287 --> 00:30:58,623 HOUSING. THAT'S REALLY CHANGED 940 00:30:58,623 --> 00:30:59,157 SIGNIFICANTLY IN ORDER TO 941 00:30:59,157 --> 00:31:01,793 ACHIEVE BELOW MARKET RENTS IN 942 00:31:01,793 --> 00:31:04,762 SEATTLE. WE ARE STARTING TO LOOK 943 00:31:04,762 --> 00:31:05,964 NOW MORE AT BETWEEN 30 AND 50 IS 944 00:31:05,964 --> 00:31:07,432 REALLY THE SWEET SPOT FOR 945 00:31:07,432 --> 00:31:08,066 AFFORDABLE HOUSING. AND THEN OF 946 00:31:08,066 --> 00:31:09,667 COURSE, OUR SUPPORTIVE HOUSING 947 00:31:09,667 --> 00:31:11,869 AND HOUSING FOR FOLKS EXITING 948 00:31:11,869 --> 00:31:14,305 HOMELESSNESS IS ALWAYS BELOW 30% 949 00:31:14,305 --> 00:31:15,540 AMI, BUT FREQUENTLY THOSE FOLKS 950 00:31:15,540 --> 00:31:18,209 ARE REALLY LIVING AT AROUND 10% 951 00:31:18,209 --> 00:31:21,412 OF THEIR INCOME IS ABOUT 10% OF 952 00:31:21,412 --> 00:31:23,147 AM AYE. SO THAT REQUIRES 953 00:31:23,147 --> 00:31:25,216 SIGNIFICANT SUBSIDY TO MAKE 954 00:31:25,216 --> 00:31:27,018 THOSE BUILDINGS OPERATE. I'M 955 00:31:27,018 --> 00:31:30,221 REALLY LOOKING FORWARD TO OUR 956 00:31:30,221 --> 00:31:31,322 CONVERSATION COMING UP SOON AS 957 00:31:31,322 --> 00:31:33,124 WE EXPLORE ALL THE APPLICATIONS 958 00:31:33,124 --> 00:31:35,059 THAT HAVE COME IN FOR THE RENTAL 959 00:31:35,059 --> 00:31:38,229 HOUSING NOFA THIS FALL, OUR TEAM 960 00:31:38,229 --> 00:31:39,664 IS WORKING REALLY HARD TO GET 961 00:31:39,664 --> 00:31:41,332 ALL THE DATA PREPARED. I WAS 962 00:31:41,332 --> 00:31:43,368 JUST PEEKING IN THE SPREADSHEET 963 00:31:43,368 --> 00:31:44,535 THIS MORNING, AND IT'LL BE 964 00:31:44,535 --> 00:31:45,637 REALLY GOOD FOR US TO BE LOOKING 965 00:31:45,637 --> 00:31:47,972 AT. WE HAVE A GEOGRAPHIC AREAS 966 00:31:47,972 --> 00:31:49,107 THAT WE ESTABLISH. WE'RE LOOKING 967 00:31:49,107 --> 00:31:50,508 AT ALL THE COSTAR DATA THAT'S 968 00:31:50,508 --> 00:31:54,345 COMING IN FROM THE MARKET TO 969 00:31:54,345 --> 00:31:55,813 UNDERSTAND RENTS AND VACANCY BY 970 00:31:55,813 --> 00:31:57,448 UNIT TYPES, BY NEIGHBORHOOD, SO 971 00:31:57,448 --> 00:31:59,017 THAT WHEN WE ARE MAKING 972 00:31:59,017 --> 00:31:59,851 INVESTMENT DECISIONS THIS YEAR, 973 00:31:59,851 --> 00:32:01,686 WE ARE GOING TO FEEL ASSURED 974 00:32:01,686 --> 00:32:03,855 THAT WE ARE INVESTING IN TRULY 975 00:32:03,855 --> 00:32:05,423 AFFORDABLE HOUSING. SO THAT'S 976 00:32:05,423 --> 00:32:07,892 VERY, VERY IMPORTANT TO US. NOW 977 00:32:07,892 --> 00:32:09,460 ON TO DEBT RESTRUCTURING. SO 978 00:32:09,460 --> 00:32:12,797 LAST YEAR WE INVESTED IN NINE 979 00:32:12,797 --> 00:32:15,266 PROJECTS WITH THIS DEBT 980 00:32:15,266 --> 00:32:15,800 RESTRUCTURING TYPOLOGY. I 981 00:32:15,800 --> 00:32:18,069 BELIEVE IT WAS $55 MILLION 982 00:32:18,069 --> 00:32:20,538 OVERALL. COMPARE THAT TO THE 40 983 00:32:20,538 --> 00:32:21,940 MILLION THAT WE RELEASED IN 984 00:32:21,940 --> 00:32:23,041 URGENT OPERATING SUPPORT, WHICH 985 00:32:23,041 --> 00:32:24,976 WAS MORE OF AN ORGANIZATION WIDE 986 00:32:24,976 --> 00:32:27,812 GRANT OFTEN CAME IN TO SUPPORT 987 00:32:27,812 --> 00:32:28,413 MAINTENANCE INSURANCE COSTS. 988 00:32:28,413 --> 00:32:30,081 SOME OF THESE BROADER 989 00:32:30,081 --> 00:32:30,715 ORGANIZATIONAL COSTS THAT THEY 990 00:32:30,715 --> 00:32:32,450 HAVE TO PAY TO CONTINUE TO 991 00:32:32,450 --> 00:32:35,219 MAINTAIN THEIR HOUSING DEBT. 992 00:32:35,219 --> 00:32:36,354 RESTRUCTURING GOES IN TO SUPPORT 993 00:32:36,354 --> 00:32:38,589 AT A VERY SPECIFIC PROJECT 994 00:32:38,589 --> 00:32:41,859 LEVEL. IT'S MUCH MORE LIKE MANY 995 00:32:41,859 --> 00:32:43,728 OF OUR OTHER CAPITAL INVESTMENTS 996 00:32:43,728 --> 00:32:45,263 THAT WE MAKE AT THE OFFICE OF 997 00:32:45,263 --> 00:32:48,399 HOUSING AS WE UNDERWRITE THE 998 00:32:48,399 --> 00:32:49,400 PROJECT AND CHANGE THE STRUCTURE 999 00:32:49,400 --> 00:32:50,969 SO THAT WE CAN CHANGE THE RENT 1000 00:32:50,969 --> 00:32:53,071 LEVELS PERMANENTLY. AND THEN THE 1001 00:32:53,071 --> 00:32:54,205 GOAL IS REALLY TO PULL THOSE OUT 1002 00:32:54,205 --> 00:32:58,576 OF NEGATIVE CASH FLOW STANCE, 1003 00:32:58,576 --> 00:32:59,177 IMPROVE THEIR OPERATING LONG 1004 00:32:59,177 --> 00:33:00,178 TERM SO THAT THEY CAN SUPPORT 1005 00:33:00,178 --> 00:33:03,581 RESIDENTS FOR GENERATIONS AHEAD 1006 00:33:03,581 --> 00:33:04,215 -- THANK YOU SO MUCH. THANK YOU 1007 00:33:04,215 --> 00:33:05,817 SO MUCH FOR THAT. I THINK 1008 00:33:05,817 --> 00:33:06,784 THAT'S REALLY HELPFUL. AND I 1009 00:33:06,784 --> 00:33:08,453 THINK IT SPEAKS TO THE ROLE THAT 1010 00:33:08,453 --> 00:33:09,721 OA IS PLAYING IN THE INCREASING 1011 00:33:09,721 --> 00:33:11,055 NEED TO MAKE SURE THAT WE'RE 1012 00:33:11,055 --> 00:33:13,057 PRESERVING OUR AFFORDABLE 1013 00:33:13,057 --> 00:33:14,092 HOUSING STOCK HERE IN SEATTLE. 1014 00:33:14,092 --> 00:33:15,693 AND I APPRECIATE THE PIVOTS THAT 1015 00:33:15,693 --> 00:33:17,895 YOU ALL HAVE MADE IN ORDER TO DO 1016 00:33:17,895 --> 00:33:19,330 SO. ONE MORE THING ON THIS THAT 1017 00:33:19,330 --> 00:33:20,698 I WANT TO JUST HAVE YOU SPEAK TO 1018 00:33:20,698 --> 00:33:22,133 A LITTLE BIT, AND THEN I'LL MOVE 1019 00:33:22,133 --> 00:33:25,103 TO ANOTHER AREA IS HOW YOU'VE. 1020 00:33:25,103 --> 00:33:26,504 AND I THINK YOU STARTED TO TOUCH 1021 00:33:26,504 --> 00:33:29,173 THIS ALREADY, HOW YOU'VE 1022 00:33:29,173 --> 00:33:29,774 ALREADY ADJUSTED THE WHAT'S 1023 00:33:29,774 --> 00:33:32,276 COMING OUT IN THE NOFAS TO TAKE 1024 00:33:32,276 --> 00:33:33,544 THIS INTO ACCOUNT. SO EARLIER 1025 00:33:33,544 --> 00:33:35,246 THIS YEAR, I THINK THERE WAS 1026 00:33:35,246 --> 00:33:37,682 SOME REQUIREMENTS AROUND A 1027 00:33:37,682 --> 00:33:39,050 CERTAIN NUMBER OF THE UNITS 1028 00:33:39,050 --> 00:33:40,284 NEEDED TO HAVE TWO BEDROOMS SO 1029 00:33:40,284 --> 00:33:43,187 THAT WE'RE SORT OF TRYING TO 1030 00:33:43,187 --> 00:33:44,555 PIVOT AND MOVE OUR INVESTMENTS 1031 00:33:44,555 --> 00:33:46,991 TO REFLECT WHERE THAT GREATEST 1032 00:33:46,991 --> 00:33:47,258 NEED IS. 1033 00:33:47,258 --> 00:33:50,795 -- YES. SO LAST YEAR WE DID 1034 00:33:50,795 --> 00:33:51,429 ESTABLISH NEW THRESHOLD CRITERIA 1035 00:33:51,429 --> 00:33:53,865 THEY HAVE HELD IN PLACE FOR THIS 1036 00:33:53,865 --> 00:33:55,900 YEAR. THAT REQUIRES ALL PROJECTS 1037 00:33:55,900 --> 00:33:58,803 TO SUBMIT AT LEAST 20% OF UNITS 1038 00:33:58,803 --> 00:34:00,505 FOR NEW PRODUCTION. MUST BE TWO 1039 00:34:00,505 --> 00:34:03,608 BEDROOMS OR MORE, 20% OF ALL 1040 00:34:03,608 --> 00:34:05,643 UNITS MUST BE AT 30% AMI OR 1041 00:34:05,643 --> 00:34:07,645 BELOW. SO WE'RE REALLY DRIVING 1042 00:34:07,645 --> 00:34:10,415 TOWARD THIS LOWER INCOME UNITS 1043 00:34:10,415 --> 00:34:12,683 AND THE LARGER FAMILY SIZE HOMES 1044 00:34:12,683 --> 00:34:13,351 THAT WE DESPERATELY NEED IN THE 1045 00:34:13,351 --> 00:34:14,485 CITY. WE'VE SEEN A LOT OF DATA 1046 00:34:14,485 --> 00:34:16,888 THAT SHOWS HOW WE ARE FALLING 1047 00:34:16,888 --> 00:34:19,657 SHORT ON BOTH OF THOSE FRONTS. 1048 00:34:19,657 --> 00:34:21,125 WE ARE HOLDING VERY STRONG TO 1049 00:34:21,125 --> 00:34:23,428 THAT THIS YEAR AS WELL, AND MAY 1050 00:34:23,428 --> 00:34:24,595 GO FURTHER AS WE ARE GOING 1051 00:34:24,595 --> 00:34:26,931 THROUGH APPLICATION REVIEW AND 1052 00:34:26,931 --> 00:34:27,532 INVESTMENT DECISIONS OVER THE 1053 00:34:27,532 --> 00:34:28,499 COURSE OF THE NEXT COUPLE OF 1054 00:34:28,499 --> 00:34:30,301 MONTHS. IT'S A HIGH PRIORITY FOR 1055 00:34:30,301 --> 00:34:33,271 ME AS WE'VE BEEN REPORTING, 1056 00:34:33,271 --> 00:34:34,172 RESPONDING TO A NUMBER OF THE 1057 00:34:34,172 --> 00:34:35,706 STATEMENTS OF LEGISLATIVE INTENT 1058 00:34:35,706 --> 00:34:38,176 THAT HAVE COME THROUGH. WE 1059 00:34:38,176 --> 00:34:38,943 UPDATED THE SEATTLE HOUSING 1060 00:34:38,943 --> 00:34:40,278 INVESTMENT PLAN, WHICH IS 1061 00:34:40,278 --> 00:34:40,878 SOMETHING THAT COUNCILMEMBER 1062 00:34:40,878 --> 00:34:42,380 KETTLE IS VERY INTERESTED IN. 1063 00:34:42,380 --> 00:34:44,982 AND IT'S REALLY INTERESTING TO 1064 00:34:44,982 --> 00:34:46,417 SEE THE DATA IN THAT SEATTLE 1065 00:34:46,417 --> 00:34:48,653 HOUSING INVESTMENT PLAN SHOWS 1066 00:34:48,653 --> 00:34:51,222 OUR HOUSING NEEDS BY INCOME 1067 00:34:51,222 --> 00:34:53,024 LEVEL AND WHAT WE PROJECTED WE 1068 00:34:53,024 --> 00:34:54,459 COULD ACHIEVE WITH DIFFERENT 1069 00:34:54,459 --> 00:34:55,927 TYPES OF HOUSING INVESTMENTS IN 1070 00:34:55,927 --> 00:34:58,162 THE CITY. AND WE REALLY ARE 1071 00:34:58,162 --> 00:35:01,933 EXPECTING TO EXCEED OUR GOAL FOR 1072 00:35:01,933 --> 00:35:03,901 THE 50 TO 80% OF AMI HOUSING 1073 00:35:03,901 --> 00:35:08,172 TYPOLOGY, WITH A LOT OF OTHER 1074 00:35:08,172 --> 00:35:08,773 TRADITIONAL INVESTMENTS LIKE 1075 00:35:08,773 --> 00:35:09,440 MFT, SEATTLE HOUSING AUTHORITY, 1076 00:35:09,440 --> 00:35:10,975 SOCIAL HOUSING DEVELOPERS, 1077 00:35:10,975 --> 00:35:13,811 BRINGING ON SOME OF THOSE, THOSE 1078 00:35:13,811 --> 00:35:17,548 UNITS AS WELL. THE GREAT NEED 1079 00:35:17,548 --> 00:35:19,083 EXISTS BELOW 50% OF AREA MEDIAN 1080 00:35:19,083 --> 00:35:20,318 INCOME. THIS CHART AND THIS, 1081 00:35:20,318 --> 00:35:21,452 THIS GAP THAT WE'RE FACING IN 1082 00:35:21,452 --> 00:35:23,454 OUR CITY WILL BE FRONT AND 1083 00:35:23,454 --> 00:35:24,589 CENTER FOR OUR TEAM AND OUR 1084 00:35:24,589 --> 00:35:26,357 EVALUATORS AS WE ARE CONSIDERING 1085 00:35:26,357 --> 00:35:28,926 HOW TO INVEST THE $110 MILLION 1086 00:35:28,926 --> 00:35:31,128 THAT WE HAVE THIS YEAR FOR OUR 1087 00:35:31,128 --> 00:35:32,964 RENTAL HOUSING. NOFA. 1088 00:35:32,964 --> 00:35:34,398 -- THANK YOU SO MUCH FOR THAT. 1089 00:35:34,398 --> 00:35:36,801 OKAY, SO I WANT TO SHIFT US JUST 1090 00:35:36,801 --> 00:35:39,103 A LITTLE BIT TO TALK MORE ABOUT 1091 00:35:39,103 --> 00:35:41,305 OUR PIPELINE. AND YOU, YOU SPOKE 1092 00:35:41,305 --> 00:35:42,907 TO THIS IN YOUR OPENING REMARKS. 1093 00:35:42,907 --> 00:35:43,541 AND I THINK THERE'S A LOT OF 1094 00:35:43,541 --> 00:35:48,045 WAYS TO THINK ABOUT $110 MILLION 1095 00:35:48,045 --> 00:35:50,081 NOFA OR $347 MILLION FOR THE OW 1096 00:35:50,081 --> 00:35:52,183 TOTAL BUDGET. BUT ONE THING THAT 1097 00:35:52,183 --> 00:35:53,784 I WANT TO REALLY PULL OUT FROM 1098 00:35:53,784 --> 00:35:55,386 YOUR PRESENTATION, AND FROM WHAT 1099 00:35:55,386 --> 00:35:57,688 I'VE HEARD YOU SAY, AND MANY OF 1100 00:35:57,688 --> 00:35:59,590 OUR PROVIDERS SAY, IS THE 1101 00:35:59,590 --> 00:36:01,626 CHALLENGES IN OUR PIPELINE 1102 00:36:01,626 --> 00:36:02,260 BECAUSE OTHER BECAUSE WHAT'S 1103 00:36:02,260 --> 00:36:03,628 HAPPENING WITH OTHER FUND 1104 00:36:03,628 --> 00:36:04,428 SOURCES. SO CAN YOU DO TWO 1105 00:36:04,428 --> 00:36:07,431 THINGS? CAN YOU JUST SORT OF 1106 00:36:07,431 --> 00:36:09,300 SPEAK TO THE INTERPLAY OF O 1107 00:36:09,300 --> 00:36:10,034 DOLLARS WITH OTHER FUND SOURCES 1108 00:36:10,034 --> 00:36:13,037 IN TERMS OF HELPING PROVIDERS 1109 00:36:13,037 --> 00:36:16,140 ACHIEVE THEIR CAPITAL STACKS? I 1110 00:36:16,140 --> 00:36:17,642 WANT TO JUST MAKE SURE WE'RE 1111 00:36:17,642 --> 00:36:19,043 HIGHLIGHTING THAT BECAUSE WHILE 1112 00:36:19,043 --> 00:36:20,244 WE HAVE, YOU KNOW, WE'RE WHILE 1113 00:36:20,244 --> 00:36:21,879 WE'RE MAKING SIGNIFICANT 1114 00:36:21,879 --> 00:36:22,413 INVESTMENTS, WE CERTAINLY 1115 00:36:22,413 --> 00:36:23,981 AREN'T THE ONLY INVESTOR THAT 1116 00:36:23,981 --> 00:36:25,049 PROVIDERS RELY ON. AND THERE'S 1117 00:36:25,049 --> 00:36:27,151 A REALLY CLOSE RELATIONSHIP 1118 00:36:27,151 --> 00:36:27,852 THERE THAT I'D LOVE TO ASK YOU 1119 00:36:27,852 --> 00:36:30,454 TO HIGHLIGHT A LITTLE BIT MORE. 1120 00:36:30,454 --> 00:36:32,823 AND IN PARTICULAR, HOW WE'RE 1121 00:36:32,823 --> 00:36:35,626 SEEING THE IMPACT OF OTHER FUND 1122 00:36:35,626 --> 00:36:38,396 SOURCES ON OUR CAPITAL PIPELINE. 1123 00:36:38,396 --> 00:36:40,565 -- GREAT. THANK YOU. YES. OVER 1124 00:36:40,565 --> 00:36:43,501 THE LAST COUPLE OF MONTHS, AS 1125 00:36:43,501 --> 00:36:45,636 I'VE BEEN GOING AROUND AND 1126 00:36:45,636 --> 00:36:46,270 MEETING WITH ALL OF THE LEADERS, 1127 00:36:46,270 --> 00:36:48,139 MANY OF THE LEADERS IN OUR 1128 00:36:48,139 --> 00:36:50,408 COMMUNITY, OF OUR HOUSING 1129 00:36:50,408 --> 00:36:52,877 ORGANIZATIONS, I'M HEARING A LOT 1130 00:36:52,877 --> 00:36:54,745 ABOUT THEIR PIPELINES. MANY OF 1131 00:36:54,745 --> 00:36:55,947 THEM DO HAVE PROJECTS THAT THEY 1132 00:36:55,947 --> 00:36:59,684 HAVE PURCHASED SITES. THEY ARE 1133 00:36:59,684 --> 00:37:00,251 VERY INTERESTED IN GETTING 1134 00:37:00,251 --> 00:37:01,352 STARTED TO DEVELOP. WE HAVE 1135 00:37:01,352 --> 00:37:03,754 PERMANENT SUPPORTIVE HOUSING 1136 00:37:03,754 --> 00:37:05,189 OPERATORS THAT HAVE SITES, AND 1137 00:37:05,189 --> 00:37:06,624 THEY'RE INTERESTED IN STARTING 1138 00:37:06,624 --> 00:37:08,793 TO GET READY TO GO. THERE'S A 1139 00:37:08,793 --> 00:37:11,162 LOT OF PROJECTS UNDERWAY AS 1140 00:37:11,162 --> 00:37:14,732 WELL, BUT IN ORDER FOR SEATTLE 1141 00:37:14,732 --> 00:37:16,701 TO MOVE PROJECTS FORWARD, WE 1142 00:37:16,701 --> 00:37:20,438 RELY ON OTHERS. ALL OF OUR 1143 00:37:20,438 --> 00:37:20,938 CAPITAL STACKS FOR NEW 1144 00:37:20,938 --> 00:37:22,840 DEVELOPMENT ARE VERY 1145 00:37:22,840 --> 00:37:25,843 COMPLICATED. THE MOST 1146 00:37:25,843 --> 00:37:26,811 SIGNIFICANT LEVERAGE PARTNER 1147 00:37:26,811 --> 00:37:27,345 COMES FROM THE LOW INCOME 1148 00:37:27,345 --> 00:37:29,513 HOUSING TAX CREDITS AND EQUITY 1149 00:37:29,513 --> 00:37:31,582 INVESTORS. OVER THE LAST SEVERAL 1150 00:37:31,582 --> 00:37:33,884 YEARS, WE'VE SEEN TAX CREDIT 1151 00:37:33,884 --> 00:37:37,288 PRICING DROP. IT'S CONTINUING TO 1152 00:37:37,288 --> 00:37:39,957 DECREASE. AND WITH THIS, 1153 00:37:39,957 --> 00:37:40,491 INVESTOR REQUIREMENTS ARE 1154 00:37:40,491 --> 00:37:42,793 INCREASING. AND CONDITIONS ARE 1155 00:37:42,793 --> 00:37:46,897 CHANGING QUITE A LOT MONTH BY 1156 00:37:46,897 --> 00:37:48,633 MONTH. I'M HEARING NEW 1157 00:37:48,633 --> 00:37:50,134 ANECDOTES AND STORIES FROM OUR 1158 00:37:50,134 --> 00:37:51,569 TEAMS EVERY DAY ABOUT WHAT 1159 00:37:51,569 --> 00:37:52,903 THEY'RE FACING ON DEALS. AND 1160 00:37:52,903 --> 00:37:54,772 WE'RE REALLY WATCHING THIS 1161 00:37:54,772 --> 00:37:56,941 CLOSELY AND STAYING VERY ENGAGED 1162 00:37:56,941 --> 00:37:57,441 IN CONVERSATIONS ON OUR 1163 00:37:57,441 --> 00:37:59,610 PROJECTS. BUT AS THIS TAX CREDIT 1164 00:37:59,610 --> 00:38:01,112 PRICING DROPS, THAT GENERALLY 1165 00:38:01,112 --> 00:38:03,714 MEANS LESS OF THAT RESOURCE 1166 00:38:03,714 --> 00:38:06,751 GOING INTO THE CAPITAL STACK AND 1167 00:38:06,751 --> 00:38:08,886 A NEED FOR SOMEONE ELSE TO COME 1168 00:38:08,886 --> 00:38:11,589 IN. SO WE ARE STILL RECEIVING 1169 00:38:11,589 --> 00:38:12,957 SUPPLEMENTAL REQUESTS FOR 1170 00:38:12,957 --> 00:38:13,557 PROJECTS THAT WE HAVE ALREADY 1171 00:38:13,557 --> 00:38:14,659 INVESTED IN THAT IS HAPPENING 1172 00:38:14,659 --> 00:38:17,862 NOT TO THE SAME EXTENT THAT IT 1173 00:38:17,862 --> 00:38:19,630 DID ABOUT TWO YEARS AGO, WHEN 1174 00:38:19,630 --> 00:38:22,099 INTEREST RATES REALLY SPIKED. 1175 00:38:22,099 --> 00:38:23,067 BUT THERE'S STILL ARE NEEDS 1176 00:38:23,067 --> 00:38:24,935 COMING IN ON OUR CURRENT 1177 00:38:24,935 --> 00:38:26,037 PIPELINE OF PROJECTS. AND SO 1178 00:38:26,037 --> 00:38:28,439 FAR, WE HAVE BEEN ABLE TO 1179 00:38:28,439 --> 00:38:31,375 NEGOTIATE THOSE ADDITIONAL 1180 00:38:31,375 --> 00:38:33,077 COMMITMENTS DOWN AS FAR AS 1181 00:38:33,077 --> 00:38:35,446 POSSIBLE, BRINGING IN OTHER 1182 00:38:35,446 --> 00:38:36,547 FUNDERS WHEREVER POSSIBLE. BUT 1183 00:38:36,547 --> 00:38:38,516 ALSO WE'VE BEEN ABLE TO RESPOND 1184 00:38:38,516 --> 00:38:39,750 BECAUSE WE HAVE FUND SOURCES 1185 00:38:39,750 --> 00:38:40,985 AVAILABLE TO DO THAT, AND IT 1186 00:38:40,985 --> 00:38:42,520 HELPS US TO MAKE SURE THAT THOSE 1187 00:38:42,520 --> 00:38:45,956 PROJECTS COMPLETE AND OPEN AND 1188 00:38:45,956 --> 00:38:47,458 BRING RESIDENTS INSIDE, WHICH IS 1189 00:38:47,458 --> 00:38:51,429 THE MOST IMPORTANT THING. WE'RE 1190 00:38:51,429 --> 00:38:52,363 ALSO HEARING AND SEEING IN THE 1191 00:38:52,363 --> 00:38:54,165 PROJECTIONS THAT THE KING COUNTY 1192 00:38:54,165 --> 00:38:55,900 CAPITAL LEVERAGE WILL BE 1193 00:38:55,900 --> 00:38:56,534 DECREASING IN FUTURE YEARS. SO 1194 00:38:56,534 --> 00:38:58,502 THAT FUND SOURCE WILL BE GOING 1195 00:38:58,502 --> 00:39:00,204 DOWN HASN'T BEEN A HUGE 1196 00:39:00,204 --> 00:39:01,172 PERCENTAGE OF OUR CAPITAL STACK, 1197 00:39:01,172 --> 00:39:05,076 BUT IT CONTRIBUTES A SIGNIFICANT 1198 00:39:05,076 --> 00:39:06,544 ENOUGH STEADY, SMALL COMMITMENT 1199 00:39:06,544 --> 00:39:07,878 THAT WE ARE EXPECTING TO RELY ON 1200 00:39:07,878 --> 00:39:10,014 LESS IN FUTURE YEARS. AND THEN 1201 00:39:10,014 --> 00:39:12,550 THE STATE IS ALSO FACING BUDGET 1202 00:39:12,550 --> 00:39:13,951 DIFFICULTIES. SO ALL OF THOSE 1203 00:39:13,951 --> 00:39:16,253 TAKEN TOGETHER, IT'S JUST A 1204 00:39:16,253 --> 00:39:17,288 VERY DYNAMIC ENVIRONMENT RIGHT 1205 00:39:17,288 --> 00:39:20,091 NOW WITH ALL THE DIFFERENT 1206 00:39:20,091 --> 00:39:20,691 LEVERAGE POINTS AND INVESTOR 1207 00:39:20,691 --> 00:39:22,126 DEMANDS SORT OF CHANGING. BUT 1208 00:39:22,126 --> 00:39:24,028 SEATTLE HAS REMAINED A STEADY 1209 00:39:24,028 --> 00:39:26,030 PARTNER FOR OUR PIPELINE AND FOR 1210 00:39:26,030 --> 00:39:27,865 ALL THESE PROJECTS MOVING 1211 00:39:27,865 --> 00:39:28,966 FORWARD, AND WE WILL CONTINUE TO 1212 00:39:28,966 --> 00:39:31,435 DO THAT TO THE EXTENT WE'RE 1213 00:39:31,435 --> 00:39:31,635 ABLE. 1214 00:39:31,635 --> 00:39:32,536 -- THANK YOU FOR THAT. I REALLY 1215 00:39:32,536 --> 00:39:34,238 APPRECIATE THAT, AND I THINK IT 1216 00:39:34,238 --> 00:39:35,539 UNDERSCORES THE IMPORTANCE OF 1217 00:39:35,539 --> 00:39:37,174 WHY, YOU KNOW, LOOKING AT THE 1218 00:39:37,174 --> 00:39:39,510 BUDGET AND AS PROPOSED, IS SO 1219 00:39:39,510 --> 00:39:42,146 CRITICAL FOR US TO BE ABLE TO 1220 00:39:42,146 --> 00:39:43,647 MAINTAIN OUR OUR CONSISTENT 1221 00:39:43,647 --> 00:39:46,984 INVESTMENT, THE $140 MILLION IN 1222 00:39:46,984 --> 00:39:48,018 JUMPSTART, BECAUSE WE HAVE TO 1223 00:39:48,018 --> 00:39:49,920 HAVE THAT CONSISTENCY FOR THESE 1224 00:39:49,920 --> 00:39:51,555 PROJECTS BECAUSE THEY'RE FACING 1225 00:39:51,555 --> 00:39:53,557 SUCH INCREDIBLE HEADWINDS FROM 1226 00:39:53,557 --> 00:39:54,892 EVERY FUND SOURCE THAT'S 1227 00:39:54,892 --> 00:39:56,827 AVAILABLE TO THEM. ONE MORE 1228 00:39:56,827 --> 00:39:57,595 QUESTION ON COST HERE. SO, YOU 1229 00:39:57,595 --> 00:39:59,663 KNOW, YOU SPOKE TO THE HOUSING 1230 00:39:59,663 --> 00:40:01,465 LEVY AND THE PROGRESS THAT WE'VE 1231 00:40:01,465 --> 00:40:02,900 MADE, AND I JUST THINK IT'S 1232 00:40:02,900 --> 00:40:03,534 INCREDIBLE PROGRESS TOWARDS OUR 1233 00:40:03,534 --> 00:40:05,035 HOUSING LEVY GOALS. ONE THING 1234 00:40:05,035 --> 00:40:06,537 THAT WE ALSO HAVE TALKED ABOUT 1235 00:40:06,537 --> 00:40:09,073 IN COMMITTEE IS THE RELATIONSHIP 1236 00:40:09,073 --> 00:40:10,508 THAT'S GOING TO BE NECESSARY 1237 00:40:10,508 --> 00:40:12,710 BETWEEN THE HOUSING LEVY AND 1238 00:40:12,710 --> 00:40:14,812 JUMPSTART. CAN YOU SPEAK TO THAT 1239 00:40:14,812 --> 00:40:19,116 JUST A LITTLE BIT 1240 00:40:19,116 --> 00:40:22,219 -- YES. WHEN WE INITIALLY 1241 00:40:22,219 --> 00:40:25,055 MODELED THE 2023 SEATTLE HOUSING 1242 00:40:25,055 --> 00:40:29,293 LEVY, WE WERE STRIVING TO HAVE 1243 00:40:29,293 --> 00:40:31,462 LEVY INVESTMENTS SEPARATE AND 1244 00:40:31,462 --> 00:40:33,564 APART FROM JUMPSTART PET 1245 00:40:33,564 --> 00:40:35,766 INVESTMENTS ON THE CAPITAL SIDE, 1246 00:40:35,766 --> 00:40:37,067 WE'VE SHIFTED A LOT OF 1247 00:40:37,067 --> 00:40:37,668 JUMPSTART AND PAYROLL EXPENSE 1248 00:40:37,668 --> 00:40:40,337 TAX EVENTS, INVESTMENTS TO OUR 1249 00:40:40,337 --> 00:40:42,106 OPERATING. AND SO THOSE SUPPORTS 1250 00:40:42,106 --> 00:40:44,375 ARE INCREDIBLY NECESSARY FOR OUR 1251 00:40:44,375 --> 00:40:44,809 SUPPORTIVE HOUSING 1252 00:40:44,809 --> 00:40:45,743 INFRASTRUCTURE, WHICH THE 1253 00:40:45,743 --> 00:40:48,312 HOUSING LEVY BUILDS. BUT WE 1254 00:40:48,312 --> 00:40:51,215 INITIALLY HAD INTENDED FOR LEVY 1255 00:40:51,215 --> 00:40:54,518 AND JUMPSTART PET TO REMAIN 1256 00:40:54,518 --> 00:40:56,086 SEPARATE AS THE COST ENVIRONMENT 1257 00:40:56,086 --> 00:40:57,521 HAS CHANGED, IT HAS BEEN 1258 00:40:57,521 --> 00:40:58,989 NECESSARY TO ASSUME SOME AMOUNT 1259 00:40:58,989 --> 00:41:00,858 OF JUMPSTART PAYROLL EXPENSE TAX 1260 00:41:00,858 --> 00:41:02,793 TO BRING OUR HOUSING LEVY 1261 00:41:02,793 --> 00:41:04,929 PROJECTS FORWARD AND TO ACHIEVE 1262 00:41:04,929 --> 00:41:07,097 OUR HOUSING LEVY GOALS. AS PART 1263 00:41:07,097 --> 00:41:09,099 OF THE SEATTLE HOUSING 1264 00:41:09,099 --> 00:41:11,402 INVESTMENT PLAN UPDATE, OUR TEAM 1265 00:41:11,402 --> 00:41:14,205 REFRESHED THE SEATTLE HOUSING 1266 00:41:14,205 --> 00:41:14,772 LEVY UNDERLYING MODEL WITH 1267 00:41:14,772 --> 00:41:17,408 UPDATED COST ASSUMPTIONS, THE 1268 00:41:17,408 --> 00:41:19,443 PRIMARY BEING INTEREST RATES, 1269 00:41:19,443 --> 00:41:21,312 LIGHT TECH PRICING, TAX CREDIT 1270 00:41:21,312 --> 00:41:23,814 PRICING, COST, INFLATION FACTORS 1271 00:41:23,814 --> 00:41:25,816 FOR CONSTRUCTION. THOSE ARE THE 1272 00:41:25,816 --> 00:41:27,485 BIGGEST FACTORS AT PLAY THAT 1273 00:41:27,485 --> 00:41:29,720 REALLY CHANGE THE DYNAMICS OF 1274 00:41:29,720 --> 00:41:32,456 WHAT WE EXPECT TO PRODUCE WITH 1275 00:41:32,456 --> 00:41:33,691 THE RESOURCES WE HAVE. AND WITH 1276 00:41:33,691 --> 00:41:35,759 THAT, IT BECAME CLEAR THAT GIVEN 1277 00:41:35,759 --> 00:41:39,597 OUR CURRENT MODEL, WHICH AGAIN, 1278 00:41:39,597 --> 00:41:41,232 A SPREADSHEET IS ONE MODEL, 1279 00:41:41,232 --> 00:41:43,767 IT'S ONE SCENARIO. IT'S NOT 1280 00:41:43,767 --> 00:41:44,301 PREDICTIVE OF THE FUTURE 1281 00:41:44,301 --> 00:41:46,237 PERFECTLY. IT IS ONE WAY FOR US 1282 00:41:46,237 --> 00:41:48,172 TO LOOK AT HOW OUR RESOURCES 1283 00:41:48,172 --> 00:41:50,674 WILL BE SPENT BY BUILDING BY 1284 00:41:50,674 --> 00:41:53,444 UNIT TYPE, BY INCOME. AND WE 1285 00:41:53,444 --> 00:41:55,012 BELIEVE IN THIS METHODOLOGY. 1286 00:41:55,012 --> 00:41:56,914 IT'S STRONG. IT'S NOT A PERFECT 1287 00:41:56,914 --> 00:41:59,516 PREDICTOR. BUT WHEN WE UPDATED 1288 00:41:59,516 --> 00:42:02,086 THAT WITH THESE CURRENT COST 1289 00:42:02,086 --> 00:42:04,321 CONDITIONS, WHICH WE THINK ARE 1290 00:42:04,321 --> 00:42:06,757 HOLDING RELATIVELY STABLE AS OF 1291 00:42:06,757 --> 00:42:09,727 THIS YEAR TO IT DID REQUIRE 1292 00:42:09,727 --> 00:42:11,428 OTHER CITY RESOURCES TO COME IN 1293 00:42:11,428 --> 00:42:13,864 TO SUPPORT THOSE PRODUCTION 1294 00:42:13,864 --> 00:42:15,633 GOALS. SO WE ARE HOLDING STEADY 1295 00:42:15,633 --> 00:42:17,534 AT OUR ASSUMPTION RIGHT NOW THAT 1296 00:42:17,534 --> 00:42:19,536 WE NEED ABOUT $46 MILLION OF 1297 00:42:19,536 --> 00:42:20,971 JUMPSTART PET TO SUPPORT THE 1298 00:42:20,971 --> 00:42:23,173 HOUSING LEVY CAPITAL GOALS THAT 1299 00:42:23,173 --> 00:42:28,779 MAY SHIFT. CERTAINLY, WHEN YOU 1300 00:42:28,779 --> 00:42:30,481 SHIFT INVESTMENTS TOWARD MORE 1301 00:42:30,481 --> 00:42:33,317 PRESERVATION, FOR EXAMPLE. SO WE 1302 00:42:33,317 --> 00:42:34,919 INVESTED IN DESKS, MORRISON 1303 00:42:34,919 --> 00:42:37,888 HOTEL DOWN THE ROAD. THAT'S AN 1304 00:42:37,888 --> 00:42:39,623 $18 MILLION PRESERVATION AWARD, 1305 00:42:39,623 --> 00:42:41,892 AND THAT SUPPORTS A VERY LARGE 1306 00:42:41,892 --> 00:42:44,061 PROJECT. SO THE PER UNIT 1307 00:42:44,061 --> 00:42:45,396 CONTRIBUTION ACTUALLY IS QUITE 1308 00:42:45,396 --> 00:42:47,898 LOW ON A PRESERVATION PROJECT 1309 00:42:47,898 --> 00:42:48,866 TYPICALLY. SO AS YOU INVEST, IF 1310 00:42:48,866 --> 00:42:50,668 YOU INVEST IN MORE PRESERVATION 1311 00:42:50,668 --> 00:42:52,236 PROJECTS, YOUR PER UNIT COST IS 1312 00:42:52,236 --> 00:42:56,407 GOING TO BE LOWER. AND WE ARE 1313 00:42:56,407 --> 00:42:59,843 SEEING THE NEED FOR MORE 1314 00:42:59,843 --> 00:43:00,411 PRESERVATION INVESTMENTS AS 1315 00:43:00,411 --> 00:43:01,078 WE'RE MOVING FORWARD. SO THIS 1316 00:43:01,078 --> 00:43:04,415 COULD SHIFT AND CHANGE AS WE GO. 1317 00:43:04,415 --> 00:43:06,583 AND I THINK OUR TEAM WOULD BE 1318 00:43:06,583 --> 00:43:09,320 INTERESTED IN REVISITING THE 1319 00:43:09,320 --> 00:43:11,355 METHODOLOGY, THE MODEL NEXT 1320 00:43:11,355 --> 00:43:13,757 YEAR, IF CONDITIONS CHANGE 1321 00:43:13,757 --> 00:43:15,092 SIGNIFICANTLY SO THAT WE CAN 1322 00:43:15,092 --> 00:43:16,226 UNDERSTAND, AGAIN, HOW THESE 1323 00:43:16,226 --> 00:43:19,396 FUND SOURCES ARE ARE INTERACTING 1324 00:43:19,396 --> 00:43:21,465 AND NECESSARY FOR EACH OTHER. 1325 00:43:21,465 --> 00:43:22,533 -- THANK YOU SO MUCH FOR THAT. 1326 00:43:22,533 --> 00:43:25,869 AND I'LL JUST SAY ON THIS, I 1327 00:43:25,869 --> 00:43:26,670 THINK IT'S I'M HAPPY TO HEAR 1328 00:43:26,670 --> 00:43:28,072 ABOUT THE MODELING. WE'VE 1329 00:43:28,072 --> 00:43:29,173 TALKED ABOUT THAT BEFORE. THE 1330 00:43:29,173 --> 00:43:30,808 REASON I WANTED TO UPLIFT, I 1331 00:43:30,808 --> 00:43:32,309 KEEP SAYING UPLIFT TODAY. IT'S 1332 00:43:32,309 --> 00:43:33,877 JUST WHERE WE ARE. THE REASON I 1333 00:43:33,877 --> 00:43:35,512 WANTED TO BRING THIS UP TODAY 1334 00:43:35,512 --> 00:43:36,747 IS, YOU KNOW, BECAUSE I THINK 1335 00:43:36,747 --> 00:43:38,415 THAT THERE WAS INCREDIBLE WORK 1336 00:43:38,415 --> 00:43:41,452 DONE, OBVIOUSLY, ON THE HOUSING 1337 00:43:41,452 --> 00:43:42,619 LEVY AND STRONG WORK DONE THERE 1338 00:43:42,619 --> 00:43:43,320 AND STRONG WORK IN TERMS OF 1339 00:43:43,320 --> 00:43:44,655 PROGRESSING TOWARDS THOSE GOALS. 1340 00:43:44,655 --> 00:43:47,257 BUT I REALLY WANTED TO HIGHLIGHT 1341 00:43:47,257 --> 00:43:49,693 FOR FOR MEMBERS OF THE COMMITTEE 1342 00:43:49,693 --> 00:43:52,029 TODAY, JUST THE TREMENDOUS COST 1343 00:43:52,029 --> 00:43:53,530 PRESSURE AND THE WAY THAT THAT 1344 00:43:53,530 --> 00:43:54,798 HAS IMPACTED SOME OF OUR 1345 00:43:54,798 --> 00:43:56,967 ASSUMPTIONS. AND I THINK THAT 1346 00:43:56,967 --> 00:43:58,202 IT'S SMART THAT O HAS DONE SUCH 1347 00:43:58,202 --> 00:44:00,270 A GOOD JOB OF MODELING AND 1348 00:44:00,270 --> 00:44:02,039 GETTING AHEAD TO UNDERSTAND THE 1349 00:44:02,039 --> 00:44:03,140 ROLE THAT JUMPSTART WILL NEED TO 1350 00:44:03,140 --> 00:44:05,476 PLAY. BUT I WANT TO MAKE SURE 1351 00:44:05,476 --> 00:44:06,944 THAT WE HAVE THAT CLARITY, 1352 00:44:06,944 --> 00:44:09,113 BECAUSE THAT'S KEY FOR US TO 1353 00:44:09,113 --> 00:44:10,848 JUST HIT THOSE HOUSING LEVY 1354 00:44:10,848 --> 00:44:12,049 PRODUCTION GOALS, WHICH ARE 1355 00:44:12,049 --> 00:44:13,517 GOALS THAT WE, WE, WE WILL HIT. 1356 00:44:13,517 --> 00:44:15,219 I KNOW, SO I REALLY APPRECIATE 1357 00:44:15,219 --> 00:44:18,489 THAT CLARITY THIS MORNING. THAT 1358 00:44:18,489 --> 00:44:19,623 CONCLUDES MY QUESTIONS. I'LL 1359 00:44:19,623 --> 00:44:20,557 JUST CLOSE WITH THIS AND SAY, I 1360 00:44:20,557 --> 00:44:21,759 THINK THAT THE WORK THAT YOU AND 1361 00:44:21,759 --> 00:44:24,561 YOUR TEAM HAVE BEEN DOING IS, IS 1362 00:44:24,561 --> 00:44:25,295 TREMENDOUS IN THE AFFORDABLE 1363 00:44:25,295 --> 00:44:27,331 HOUSING SPACE. AND AGAIN, JUST 1364 00:44:27,331 --> 00:44:28,232 EXPRESS MY APPRECIATION AND MY 1365 00:44:28,232 --> 00:44:30,000 GRATITUDE TO YOU FOR YOUR 1366 00:44:30,000 --> 00:44:31,168 LEADERSHIP BEFORE, YOU KNOW, AS 1367 00:44:31,168 --> 00:44:32,369 A LONGTIME STAFFER AND NOW NEW 1368 00:44:32,369 --> 00:44:33,704 DIRECTOR. SO THANK YOU SO MUCH. 1369 00:44:33,704 --> 00:44:36,140 AND THANK YOU SO MUCH, CHAIR. 1370 00:44:36,140 --> 00:44:36,707 -- THANK YOU, COUNCILMEMBER 1371 00:44:36,707 --> 00:44:40,644 FOSTER. COLLEAGUES, QUESTIONS, 1372 00:44:40,644 --> 00:44:42,146 COMMENTS. I HAVE COUNCILMEMBER 1373 00:44:42,146 --> 00:44:45,082 RIVERA. AND ONE THING I WILL 1374 00:44:45,082 --> 00:44:46,984 REQUEST IS IF YOU DO WANT TO 1375 00:44:46,984 --> 00:44:48,218 SPEAK, JUST GET YOUR HAND UP 1376 00:44:48,218 --> 00:44:50,287 THERE. THEN WE ALL KNOW HOW MANY 1377 00:44:50,287 --> 00:44:51,588 PEOPLE ARE IN THE QUEUE. IT 1378 00:44:51,588 --> 00:44:53,223 REALLY HELPS. OVER TO YOU, VICE 1379 00:44:53,223 --> 00:44:53,457 CHAIR. 1380 00:44:53,457 --> 00:44:54,792 -- THANK YOU, CHAIR, AND THANK 1381 00:44:54,792 --> 00:44:57,094 YOU FOR BEING HERE. AND 1382 00:44:57,094 --> 00:44:58,162 CONGRATULATIONS, KELLY. I DON'T 1383 00:44:58,162 --> 00:45:02,232 THINK I'VE SEEN YOU SINCE YOUR 1384 00:45:02,232 --> 00:45:04,268 CONFIRMATION. I JUST WANT TO. 1385 00:45:04,268 --> 00:45:07,638 KELLY, I WANT TO TALK ABOUT 1386 00:45:07,638 --> 00:45:12,409 SORRY, I NEED TO MICK JAGGER. 1387 00:45:12,409 --> 00:45:13,243 OKAY. CHAIR. YOU COULD TELL I 1388 00:45:13,243 --> 00:45:17,181 WAS NEVER IN A BAND. CAN YOU 1389 00:45:17,181 --> 00:45:20,350 TELL US A LITTLE BIT? SO WE'VE 1390 00:45:20,350 --> 00:45:22,553 HAD THIS CONVERSATION BEFORE IN 1391 00:45:22,553 --> 00:45:24,855 TERMS OF THE UNITS THAT WE 1392 00:45:24,855 --> 00:45:26,390 ALREADY HAVE CREATED AND THE 1393 00:45:26,390 --> 00:45:28,525 MAINTENANCE OF IT, WE'VE HEARD 1394 00:45:28,525 --> 00:45:29,893 FROM HOUSING PROVIDERS IN YEARS 1395 00:45:29,893 --> 00:45:32,529 PAST, STARTING IN 2024, ABOUT 1396 00:45:32,529 --> 00:45:35,065 THE DIFFICULTIES OF MAINTAINING 1397 00:45:35,065 --> 00:45:37,501 THE UNITS THAT THEY CURRENTLY 1398 00:45:37,501 --> 00:45:42,372 HAVE FOR A MYRIAD OF REASONS. 1399 00:45:42,372 --> 00:45:44,541 AND SO THEN WE DID THE 1400 00:45:44,541 --> 00:45:46,176 STABILIZATION FUNDS AND THEN 1401 00:45:46,176 --> 00:45:47,578 LIKE THE DEBT RESTRUCTURING WAS 1402 00:45:47,578 --> 00:45:50,981 A WAY TO ADDRESS THAT. AND I, I 1403 00:45:50,981 --> 00:45:53,183 APPRECIATE THAT YOU SUBMITTED 1404 00:45:53,183 --> 00:45:55,452 YOUR SLI REQUESTS. IT DIDN'T 1405 00:45:55,452 --> 00:45:57,888 HAVE VERY MUCH INFORMATION 1406 00:45:57,888 --> 00:45:59,723 CONTAINED IN IT IN TERMS OF 1407 00:45:59,723 --> 00:46:02,326 BEING ABLE TO ASSESS HOW WELL 1408 00:46:02,326 --> 00:46:03,994 THOSE STABILIZATION FUNDS ARE 1409 00:46:03,994 --> 00:46:05,963 GOING, AND ALSO, CAN YOU TELL US 1410 00:46:05,963 --> 00:46:07,865 A LITTLE BIT ABOUT THE DEBT 1411 00:46:07,865 --> 00:46:09,366 RESTRUCTURING? I KNOW THAT JUST 1412 00:46:09,366 --> 00:46:12,970 WAS AS OF, I THINK, LAST YEAR. 1413 00:46:12,970 --> 00:46:15,005 SO I'M JUST CURIOUS, DO WE HAVE 1414 00:46:15,005 --> 00:46:16,874 INFORMATION TO SEE HOW WELL THE 1415 00:46:16,874 --> 00:46:20,244 DEBT RESTRUCTURING IS GOING FOR 1416 00:46:20,244 --> 00:46:23,247 THOSE PROVIDERS THAT HAVE 1417 00:46:23,247 --> 00:46:27,684 UTILIZED THAT TOOL TO BE ABLE TO 1418 00:46:27,684 --> 00:46:29,453 ADDRESS WHAT THEY'RE SEEING IN 1419 00:46:29,453 --> 00:46:31,321 THEIR BUILDINGS, AND THEN, OF 1420 00:46:31,321 --> 00:46:31,855 COURSE, SEPARATE FROM THE 1421 00:46:31,855 --> 00:46:32,556 STABILIZATION FUNDS, BECAUSE I 1422 00:46:32,556 --> 00:46:35,058 WHAT I HAD HEARD FROM PROVIDERS 1423 00:46:35,058 --> 00:46:39,163 THAT YOU DID MENTION IN YOUR IN 1424 00:46:39,163 --> 00:46:41,532 YOUR MEMO WAS JUST HAVING TO 1425 00:46:41,532 --> 00:46:44,168 REPAIR THE UNITS THAT ARE 1426 00:46:44,168 --> 00:46:49,273 EXISTING THEY'RE JUST GETTING 1427 00:46:49,273 --> 00:46:51,074 DAMAGED BY RESIDENTS, I BELIEVE. 1428 00:46:51,074 --> 00:46:52,209 SO CAN YOU TALK A LITTLE BIT 1429 00:46:52,209 --> 00:46:54,545 ABOUT THAT? AND THEN I COULDN'T 1430 00:46:54,545 --> 00:46:56,647 FIND I'M LOOKING AT THE BUDGET 1431 00:46:56,647 --> 00:46:58,749 BOOK. THERE WAS A ONE TIME 1432 00:46:58,749 --> 00:46:59,850 REDUCTION. I DON'T KNOW WHAT 1433 00:46:59,850 --> 00:47:01,351 THAT WAS TO. AND SO I WANT TO 1434 00:47:01,351 --> 00:47:04,054 CONFIRM THAT THE STABILIZATION 1435 00:47:04,054 --> 00:47:05,055 FUNDS WILL CONTINUE AS PART OF 1436 00:47:05,055 --> 00:47:09,660 THAT. I THINK I, I UNDERSTAND 1437 00:47:09,660 --> 00:47:10,327 IT'S PART OF THE AGENCY 1438 00:47:10,327 --> 00:47:11,495 SUPPORTS, BUT I JUST WANT TO 1439 00:47:11,495 --> 00:47:14,565 CONFIRM, BECAUSE WE'RE CALLING 1440 00:47:14,565 --> 00:47:16,099 IT DIFFERENT THINGS OR MAYBE THE 1441 00:47:16,099 --> 00:47:16,833 AGENCY SUPPORTS HAS A NUMBER OF 1442 00:47:16,833 --> 00:47:19,269 THINGS, INCLUDING STABILIZATION 1443 00:47:19,269 --> 00:47:20,871 FUND. CAN YOU JUST CONFIRM THAT 1444 00:47:20,871 --> 00:47:22,940 PIECE AND THEN ADDRESS 1445 00:47:22,940 --> 00:47:24,675 INFORMATION ABOUT THE DEBT 1446 00:47:24,675 --> 00:47:25,342 RESTRUCTURING, HOW THAT'S GOING? 1447 00:47:25,342 --> 00:47:27,578 AND THEN THE STABILIZATION FUNDS 1448 00:47:27,578 --> 00:47:30,781 AND WHAT WHAT HAS THAT GONE? 1449 00:47:30,781 --> 00:47:32,649 WHAT HAVE YOU SEEN IN TERMS OF 1450 00:47:32,649 --> 00:47:34,418 ABILITY TO MAINTAIN THOSE UNITS? 1451 00:47:34,418 --> 00:47:36,920 WHERE ARE WE? 1452 00:47:36,920 --> 00:47:38,655 -- GREAT. YES. SO TO START, DID 1453 00:47:38,655 --> 00:47:40,791 YOU WANT TO ANSWER THAT? THE 1454 00:47:40,791 --> 00:47:41,158 FIRST THE LAST. 1455 00:47:41,158 --> 00:47:42,459 -- QUESTION I CAN START WITH THE 1456 00:47:42,459 --> 00:47:46,563 LAST QUESTION. THERE IS NO 1457 00:47:46,563 --> 00:47:49,266 REDUCTION TO THE AGENCY SUPPORTS 1458 00:47:49,266 --> 00:47:51,435 EFFORTS. THE THE THE URGENT 1459 00:47:51,435 --> 00:47:54,238 OPERATING SUPPORT PROGRAM IS NOT 1460 00:47:54,238 --> 00:47:58,342 IN 2027. IT WAS JUST WITH 2025 1461 00:47:58,342 --> 00:47:59,543 AND 2026. SO YOU WILL SEE THAT 1462 00:47:59,543 --> 00:48:05,415 AS A BASELINE CHANGE. BUT THE 1463 00:48:05,415 --> 00:48:07,417 CORE STANDARD OF THE AGENCY 1464 00:48:07,417 --> 00:48:08,919 SUPPORTS HAD NO REDUCTION. IN 1465 00:48:08,919 --> 00:48:10,921 FACT, HAD AN INFLATIONARY 1466 00:48:10,921 --> 00:48:11,188 INCREASE. 1467 00:48:11,188 --> 00:48:13,824 -- SORRY. SO WE'RE NOT 1468 00:48:13,824 --> 00:48:14,992 CONTINUING THE STABILIZATION 1469 00:48:14,992 --> 00:48:17,327 SUPPORTS WE PUT IN IN 25 AND 26. 1470 00:48:17,327 --> 00:48:19,730 -- THOSE WERE THOSE WERE SORT OF 1471 00:48:19,730 --> 00:48:21,498 THE FIRST RELEASE WE CALLED A 1472 00:48:21,498 --> 00:48:22,733 ONE TIME RELEASE. AND THEN THE 1473 00:48:22,733 --> 00:48:24,134 SECOND, WE NOW CALL IT A 1474 00:48:24,134 --> 00:48:25,702 PERIODIC. WE DON'T CURRENTLY 1475 00:48:25,702 --> 00:48:27,004 HAVE A PLAN FOR A THIRD RELEASE. 1476 00:48:27,004 --> 00:48:29,039 IT MAY BE NECESSARY. WE'RE 1477 00:48:29,039 --> 00:48:31,508 CERTAINLY RECEIVING ADVOCACY 1478 00:48:31,508 --> 00:48:32,943 FROM PROVIDERS ABOUT ONGOING 1479 00:48:32,943 --> 00:48:35,545 NEEDS. IN MY MIND, THE NUMBER 1480 00:48:35,545 --> 00:48:37,047 ONE OUTCOME THAT SHOWS THAT 1481 00:48:37,047 --> 00:48:38,348 THOSE INVESTMENTS HAVE BEEN 1482 00:48:38,348 --> 00:48:39,916 SUCCESSFUL IS THAT WE HAVE NOT 1483 00:48:39,916 --> 00:48:40,851 SEEN A COLLAPSE OF A MAJOR 1484 00:48:40,851 --> 00:48:43,153 ORGANIZATION IN OUR CITY. 1485 00:48:43,153 --> 00:48:45,122 THAT'S WHAT YOU HOPE TO AVOID. 1486 00:48:45,122 --> 00:48:46,390 IN SPEAKING WITH OUR COLLEAGUES 1487 00:48:46,390 --> 00:48:50,427 IN LOS ANGELES, THE PROCESS OF 1488 00:48:50,427 --> 00:48:51,061 MOVING THROUGH RECEIVERSHIP WITH 1489 00:48:51,061 --> 00:48:53,130 A MAJOR HOUSING PORTFOLIO IS 1490 00:48:53,130 --> 00:48:54,731 EVEN MORE COSTLY THAN 1491 00:48:54,731 --> 00:48:56,633 MAINTAINING IT. IT IS INCREDIBLY 1492 00:48:56,633 --> 00:48:58,101 STRESSFUL AND DIFFICULT FOR THE 1493 00:48:58,101 --> 00:48:59,870 TENANTS, FOR THE STAFF. WE 1494 00:48:59,870 --> 00:49:01,438 REALLY WANT TO AVOID THAT. SO WE 1495 00:49:01,438 --> 00:49:03,473 HAVE AVOIDED THAT. THAT'S THE 1496 00:49:03,473 --> 00:49:10,013 NUMBER ONE STORY BUT THE OTHER 1497 00:49:10,013 --> 00:49:10,647 INVESTMENTS THAT HAVE GONE OUT. 1498 00:49:10,647 --> 00:49:14,084 SO DEBT RESTRUCTURING, THOSE 1499 00:49:14,084 --> 00:49:15,786 PROJECTS ARE JUST FINISHING UP 1500 00:49:15,786 --> 00:49:16,353 NOW WITH THEIR UNDERWRITING 1501 00:49:16,353 --> 00:49:17,654 EFFORTS. SO WE MADE THOSE AWARDS 1502 00:49:17,654 --> 00:49:19,489 AT THE END OF LAST YEAR, AND 1503 00:49:19,489 --> 00:49:20,657 WE'VE BEEN WORKING TO GET THEM 1504 00:49:20,657 --> 00:49:24,194 IN PLACE, WORKING OUT KEY DEAL 1505 00:49:24,194 --> 00:49:25,963 POINTS BECAUSE IT'S A NEW 1506 00:49:25,963 --> 00:49:26,797 TYPOLOGY. THERE HAVE BEEN 1507 00:49:26,797 --> 00:49:27,898 THERE'S BEEN SOME BACK AND 1508 00:49:27,898 --> 00:49:30,133 FORTH WITH OUR PROVIDERS ABOUT 1509 00:49:30,133 --> 00:49:32,135 HOW TO WRITE THOSE DEALS. WE 1510 00:49:32,135 --> 00:49:34,905 ARE, I THINK, GETTING CLOSE TO 1511 00:49:34,905 --> 00:49:35,539 BEING COMPLETELY DONE WITH ALL 1512 00:49:35,539 --> 00:49:39,710 OF THOSE LOAN DOCUMENTS AND THE 1513 00:49:39,710 --> 00:49:41,178 REALLY GREAT THING ABOUT THOSE 1514 00:49:41,178 --> 00:49:42,012 TYPES OF INVESTMENTS IS THAT THE 1515 00:49:42,012 --> 00:49:45,048 FUNDS FLOW OUT VERY QUICKLY FROM 1516 00:49:45,048 --> 00:49:47,884 THE CITY TO THE PROVIDERS, AS 1517 00:49:47,884 --> 00:49:49,286 THEY'RE USED TO IMMEDIATELY 1518 00:49:49,286 --> 00:49:51,121 WRITE DOWN PRIVATE DEBT. SO 1519 00:49:51,121 --> 00:49:53,323 THOSE FUNDS FLOW VERY FAST. 1520 00:49:53,323 --> 00:49:54,725 IT'S WORKING OUT ALL THE DEALS, 1521 00:49:54,725 --> 00:49:56,927 THE DEAL TERMS, IN TERMS OF WHAT 1522 00:49:56,927 --> 00:49:58,662 INCOME LEVELS ARE CHANGING IN 1523 00:49:58,662 --> 00:50:00,897 THE BUILDING AND WHY, FOR WHAT 1524 00:50:00,897 --> 00:50:03,800 APARTMENTS, AND THEN OTHER 1525 00:50:03,800 --> 00:50:05,836 DETAILS AROUND CASH FLOW. WE 1526 00:50:05,836 --> 00:50:08,005 EXPECT TO LEARN MORE ABOUT HOW 1527 00:50:08,005 --> 00:50:09,840 THOSE PROJECTS ARE OPERATING 1528 00:50:09,840 --> 00:50:11,541 NEXT YEAR. YOU'D REALLY WANT TO 1529 00:50:11,541 --> 00:50:14,344 SEE A CHANGE IN CASH FLOW. 1530 00:50:14,344 --> 00:50:15,345 THAT'S THE GOAL. SO THESE ARE 1531 00:50:15,345 --> 00:50:17,280 ALL NEGATIVE CASH FLOW BUILDINGS 1532 00:50:17,280 --> 00:50:18,382 AS OF WHEN THEY APPLIED TO US. 1533 00:50:18,382 --> 00:50:20,117 WE'D LIKE TO SEE THAT NEGATIVE 1534 00:50:20,117 --> 00:50:23,086 CASH FLOW DECREASING AND 1535 00:50:23,086 --> 00:50:24,821 POTENTIALLY MOVING OVER INTO 1536 00:50:24,821 --> 00:50:26,256 POSITIVE CASH FLOW. THAT IS THE 1537 00:50:26,256 --> 00:50:29,760 GOAL. SO WE CAN COME BACK TO YOU 1538 00:50:29,760 --> 00:50:31,395 NEXT YEAR WHEN WE HAVE A LITTLE 1539 00:50:31,395 --> 00:50:33,096 BIT MORE TIME TO ASSESS HOW 1540 00:50:33,096 --> 00:50:36,032 THOSE INVESTMENTS HAVE LANDED 1541 00:50:36,032 --> 00:50:38,034 WITH STABILIZATION FUNDS. SO 1542 00:50:38,034 --> 00:50:39,970 WE'VE WE'VE RELEASED, YOU 1543 00:50:39,970 --> 00:50:41,705 KNOW, THE FIRST 40 MILLION 1544 00:50:41,705 --> 00:50:42,406 PROJECTS ARE STILL SPENDING. 1545 00:50:42,406 --> 00:50:45,108 THEY HAVE UNTIL DECEMBER 31st, 1546 00:50:45,108 --> 00:50:48,111 2027 TO FULLY SPEND DOWN THOSE 1547 00:50:48,111 --> 00:50:50,747 RESOURCES. MANY FOLKS, MANY 1548 00:50:50,747 --> 00:50:53,383 PROVIDERS USED THOSE RESOURCES 1549 00:50:53,383 --> 00:50:56,019 TO COVER INSURANCE PREMIUMS, 1550 00:50:56,019 --> 00:50:57,687 WHICH HAVE JUST CONTINUED TO BE 1551 00:50:57,687 --> 00:51:00,223 INCREDIBLY DIFFICULT FOR 1552 00:51:00,223 --> 00:51:02,092 ORGANIZATIONS TO MANAGE AS THEIR 1553 00:51:02,092 --> 00:51:04,761 PREMIUMS ARE GOING UP. MANY ARE 1554 00:51:04,761 --> 00:51:06,663 AVOIDING TAPPING IN BECAUSE 1555 00:51:06,663 --> 00:51:08,031 DEDUCTIBLES ARE SO HIGH. SO 1556 00:51:08,031 --> 00:51:09,132 THEY'RE COVERING A LOT OF 1557 00:51:09,132 --> 00:51:11,268 MAINTENANCE COSTS WITHOUT 1558 00:51:11,268 --> 00:51:13,370 TAPPING INTO INSURANCE, TRYING 1559 00:51:13,370 --> 00:51:15,639 TO AVOID INCREASING PREMIUMS 1560 00:51:15,639 --> 00:51:17,407 EVEN FURTHER. SO THERE'S THIS 1561 00:51:17,407 --> 00:51:19,109 DECISION THAT MANY OF THEM ARE 1562 00:51:19,109 --> 00:51:20,243 FACING ON A DAILY BASIS. DO I 1563 00:51:20,243 --> 00:51:22,245 TRY AND GET INSURANCE TO COVER 1564 00:51:22,245 --> 00:51:23,380 THIS, OR AM I MANAGING IT ON MY 1565 00:51:23,380 --> 00:51:25,048 OWN? HOW DO I KIND OF MAINTAIN 1566 00:51:25,048 --> 00:51:26,883 THIS DELICATE BALANCE ON OUR 1567 00:51:26,883 --> 00:51:30,120 INSURANCE COSTS? MANY OF THOSE 1568 00:51:30,120 --> 00:51:32,689 STABILIZATION FUNDS HAVE GONE TO 1569 00:51:32,689 --> 00:51:33,190 SUPPORT THOSE EXPENSES. 1570 00:51:33,190 --> 00:51:35,058 MAINTENANCE AND REPAIRS OF 1571 00:51:35,058 --> 00:51:37,794 APARTMENTS. THAT IS CRITICAL. 1572 00:51:37,794 --> 00:51:40,063 SOME STAFFING WE LEARNED FROM 1573 00:51:40,063 --> 00:51:43,133 AND RENT ASSISTANCE WE WE DID 1574 00:51:43,133 --> 00:51:45,335 BRING THROUGH AFTER THE FIRST 1575 00:51:45,335 --> 00:51:45,836 ROUND OF STABILIZATION 1576 00:51:45,836 --> 00:51:47,637 INVESTMENTS, WE HAD A PROVIDER 1577 00:51:47,637 --> 00:51:49,172 ROUNDTABLE, AND WE INVITED A FEW 1578 00:51:49,172 --> 00:51:51,441 OF THE PROVIDERS TO OFFER SOME 1579 00:51:51,441 --> 00:51:52,943 OF THEIR LESSONS LEARNED AND 1580 00:51:52,943 --> 00:51:54,177 BEST PRACTICES FROM THE 1581 00:51:54,177 --> 00:51:56,646 INVESTMENTS THAT THEY MADE. ONE 1582 00:51:56,646 --> 00:51:57,747 ORGANIZATION SHARED QUITE A LOT 1583 00:51:57,747 --> 00:51:59,182 ABOUT HOW THEY WERE ABLE TO PARE 1584 00:51:59,182 --> 00:52:01,551 THESE OPERATING STABILIZATION 1585 00:52:01,551 --> 00:52:03,954 INVESTMENTS WITH PRIVATE 1586 00:52:03,954 --> 00:52:04,521 FUNDRAISING TO IMPROVE THE 1587 00:52:04,521 --> 00:52:06,022 SAFETY AND SECURITY OF THEIR 1588 00:52:06,022 --> 00:52:08,625 BUILDINGS. WITH NEW SECURITY 1589 00:52:08,625 --> 00:52:11,094 INVESTMENTS, BOTH HARDWARE AS 1590 00:52:11,094 --> 00:52:13,497 WELL AS STAFFING TO SERVE AS 1591 00:52:13,497 --> 00:52:16,633 MORE OF A LEADERSHIP. THEY HAD, 1592 00:52:16,633 --> 00:52:18,435 YOU KNOW, ADDITIONAL SECURITY 1593 00:52:18,435 --> 00:52:20,837 STAFFING, INCLUDING KIND OF ONE 1594 00:52:20,837 --> 00:52:22,439 CENTRAL, RESPONSIBLE PERSON WHO 1595 00:52:22,439 --> 00:52:24,541 WAS COORDINATING ACROSS THEIR 1596 00:52:24,541 --> 00:52:27,110 PORTFOLIO TO RESPOND TO URGENT 1597 00:52:27,110 --> 00:52:28,578 SITUATIONS AND KIND OF BE THAT 1598 00:52:28,578 --> 00:52:30,647 POINT PERSON FOR STAFF. AND THEN 1599 00:52:30,647 --> 00:52:33,483 ANOTHER ORGANIZATION CAME AND 1600 00:52:33,483 --> 00:52:37,120 PRESENTED ABOUT THEIR INNOVATIVE 1601 00:52:37,120 --> 00:52:38,855 WORK TO BRING RENTAL ASSISTANCE 1602 00:52:38,855 --> 00:52:42,459 INTO THEIR ORGANIZATION, WHILE 1603 00:52:42,459 --> 00:52:43,059 ALSO STRONGLY ENCOURAGING AND 1604 00:52:43,059 --> 00:52:44,594 INCENTIVIZING TENANTS TO CATCH 1605 00:52:44,594 --> 00:52:47,564 UP ON RENT THAT THEY WERE 1606 00:52:47,564 --> 00:52:50,200 BEHIND. IT'S VERY DIFFICULT WHEN 1607 00:52:50,200 --> 00:52:54,437 YOU BECOME SO FAR BEHIND IN RENT 1608 00:52:54,437 --> 00:52:56,006 TO START WORKING ON THAT WHEN 1609 00:52:56,006 --> 00:52:57,507 YOU HAVE A VERY, VERY LOW 1610 00:52:57,507 --> 00:52:58,608 INCOME, YOU DON'T HAVE A LOT OF 1611 00:52:58,608 --> 00:53:01,611 RESOURCES TO BRING TO BEAR. IT 1612 00:53:01,611 --> 00:53:04,214 CAN FEEL SUPER DEFEATING. THERE 1613 00:53:04,214 --> 00:53:06,249 WAS ONE ORGANIZATION THAT 1614 00:53:06,249 --> 00:53:08,151 BROUGHT THESE RESOURCES IN TO 1615 00:53:08,151 --> 00:53:10,253 TEST SOME NEW MODELS. SOME OF 1616 00:53:10,253 --> 00:53:12,822 THAT MEANT VERY ASSERTIVE 1617 00:53:12,822 --> 00:53:14,391 OUTREACH AND PROACTIVE WORK WITH 1618 00:53:14,391 --> 00:53:16,459 INDIVIDUAL TENANTS WHO ARE IN 1619 00:53:16,459 --> 00:53:19,496 DEEP ARREARS TO TEST WHETHER 1620 00:53:19,496 --> 00:53:20,363 MOTIVATIONAL INTERVIEWING AND 1621 00:53:20,363 --> 00:53:21,765 STRONG SUPPORT OF THOSE FOLKS 1622 00:53:21,765 --> 00:53:23,466 COULD HELP TO ENCOURAGE 1623 00:53:23,466 --> 00:53:25,402 DIFFERENT BEHAVIOR. AND IT DID 1624 00:53:25,402 --> 00:53:28,738 WORK IN A NUMBER OF 1625 00:53:28,738 --> 00:53:29,706 CIRCUMSTANCES. IT DIDN'T WORK 1626 00:53:29,706 --> 00:53:31,975 FOR EVERYONE, BUT THEY SAW SOME 1627 00:53:31,975 --> 00:53:33,743 SUCCESS ENOUGH THAT IT WAS WORTH 1628 00:53:33,743 --> 00:53:35,545 THEM REPLICATING AND CONTINUING 1629 00:53:35,545 --> 00:53:37,113 TO TEST. SO THESE WERE SOME OF 1630 00:53:37,113 --> 00:53:38,515 THE MODELS AND CONCEPTS THAT 1631 00:53:38,515 --> 00:53:40,517 WERE BROUGHT FORWARD IN ORDER TO 1632 00:53:40,517 --> 00:53:41,851 ENCOURAGE OTHER PROVIDERS TO TRY 1633 00:53:41,851 --> 00:53:43,553 SOME OF THESE INNOVATIVE 1634 00:53:43,553 --> 00:53:45,956 APPROACHES. IF THEY COULD. 1635 00:53:45,956 --> 00:53:48,024 SOMETIMES OTHER ORGANIZATIONS 1636 00:53:48,024 --> 00:53:49,960 WON'T HAVE AS MUCH ACCESS TO 1637 00:53:49,960 --> 00:53:50,594 PRIVATE FUNDRAISING AS OTHERS. 1638 00:53:50,594 --> 00:53:52,028 THERE ARE DIFFERENTIALS ACROSS 1639 00:53:52,028 --> 00:53:54,064 THE COMMUNITY AND HOW SUCCESSFUL 1640 00:53:54,064 --> 00:53:54,931 DIFFERENT ORGANIZATIONS ARE ON 1641 00:53:54,931 --> 00:53:57,334 THAT FRONT. BUT IT WAS STILL 1642 00:53:57,334 --> 00:53:58,768 INSPIRING. MANY ORGANIZATIONS 1643 00:53:58,768 --> 00:54:00,136 WERE REALLY ENGAGED IN THE 1644 00:54:00,136 --> 00:54:01,905 QUESTION AND ANSWER, AND 1645 00:54:01,905 --> 00:54:02,672 INTERESTED IN FINDING WAYS THAT 1646 00:54:02,672 --> 00:54:04,240 THEY COULD BRING THESE LESSONS 1647 00:54:04,240 --> 00:54:06,076 BACK TO THEIR ORGANIZATIONS TO 1648 00:54:06,076 --> 00:54:08,244 TRY AND TEST AND IMPROVE THEIR 1649 00:54:08,244 --> 00:54:10,347 OPERATIONS. 1650 00:54:10,347 --> 00:54:12,315 -- THANK YOU, DIRECTOR LARSEN, 1651 00:54:12,315 --> 00:54:14,351 DO YOU HAVE SOMETHING TO ADD? 1652 00:54:14,351 --> 00:54:15,952 DIRECTOR, PLEASE, PLEASE. 1653 00:54:15,952 --> 00:54:17,787 -- SORRY, I'M DOING CONVERSATION 1654 00:54:17,787 --> 00:54:17,988 HERE. 1655 00:54:17,988 --> 00:54:19,723 -- SO IN SO MANY DAYS IN A ROW, 1656 00:54:19,723 --> 00:54:21,524 YOU KNOW, MY, YOU KNOW, MY, YOU 1657 00:54:21,524 --> 00:54:22,359 KNOW, MY SIGNALS WHEN I WANT TO 1658 00:54:22,359 --> 00:54:23,994 SAY SOMETHING, I JUST WANT TO 1659 00:54:23,994 --> 00:54:25,495 SORT OF PULL BACK AT A, AT A 1660 00:54:25,495 --> 00:54:26,830 HIGHER LEVEL BECAUSE YOU WERE 1661 00:54:26,830 --> 00:54:29,299 ASKING ABOUT LIKE, IS THIS A 1662 00:54:29,299 --> 00:54:29,933 REDUCTION IN OPERATIONAL SUPPORT 1663 00:54:29,933 --> 00:54:31,968 AND THOSE SORTS OF THINGS? 1664 00:54:31,968 --> 00:54:33,570 OVERALL, WHAT WE'RE TALKING 1665 00:54:33,570 --> 00:54:35,639 ABOUT HERE IS NOT ANY CHANGES IN 1666 00:54:35,639 --> 00:54:39,175 OSE BUDGET GOING UP OR DOWN, BUT 1667 00:54:39,175 --> 00:54:41,077 DIRECTOR LARSEN AND HER TEAM 1668 00:54:41,077 --> 00:54:44,547 HAVING TO SOMETIMES MAKE CHOICES 1669 00:54:44,547 --> 00:54:46,416 ABOUT WHERE WHETHER OR NOT WE'RE 1670 00:54:46,416 --> 00:54:48,985 ALLOCATING MORE FUNDING TO NEW 1671 00:54:48,985 --> 00:54:49,986 UNITS VERSUS SUPPORTING EXISTING 1672 00:54:49,986 --> 00:54:52,188 UNITS. AND THIS IS A DYNAMIC 1673 00:54:52,188 --> 00:54:53,590 SITUATION THAT IS GOING TO 1674 00:54:53,590 --> 00:54:54,991 CONTINUE TO HAVE TO BE 1675 00:54:54,991 --> 00:54:56,293 MONITORED. AND I KNOW THAT 1676 00:54:56,293 --> 00:54:57,861 THEY'RE TAKING A VERY 1677 00:54:57,861 --> 00:54:59,295 THOUGHTFUL APPROACH OF HOW WE 1678 00:54:59,295 --> 00:55:01,965 ARE LOOKING AT BOTH LIKE FUTURE 1679 00:55:01,965 --> 00:55:03,333 AND FORWARD COMMITMENTS FOR 1680 00:55:03,333 --> 00:55:05,168 CAPITAL PROJECTS, AS WELL AS 1681 00:55:05,168 --> 00:55:06,436 HELPING SUPPORT THOSE AGENCIES. 1682 00:55:06,436 --> 00:55:07,804 AND THEN WE TO LOOK FORWARD TO 1683 00:55:07,804 --> 00:55:09,105 SORT OF HEARING MORE ABOUT HOW 1684 00:55:09,105 --> 00:55:11,408 THIS SORT OF INFLUX AND 1685 00:55:11,408 --> 00:55:13,343 OPERATIONAL AGENCY SUPPORTS THAT 1686 00:55:13,343 --> 00:55:16,713 HAPPEN THIS YEAR ARE WORKING TO 1687 00:55:16,713 --> 00:55:18,815 STABILIZE THOSE THOSE UNITS 1688 00:55:18,815 --> 00:55:19,883 -- MAY I CHAIR? 1689 00:55:19,883 --> 00:55:20,250 -- YES, PLEASE. 1690 00:55:20,250 --> 00:55:23,486 -- THANK YOU. THANK YOU. 1691 00:55:23,486 --> 00:55:26,389 DIRECTOR. I THIS COUNCIL, MANY 1692 00:55:26,389 --> 00:55:27,424 OF US WERE HERE A COUPLE YEARS 1693 00:55:27,424 --> 00:55:29,659 AGO WHEN WE WERE SUPPORTING THE 1694 00:55:29,659 --> 00:55:31,327 STABILIZATION FUNDS, AND 1695 00:55:31,327 --> 00:55:32,295 ACTUALLY WE WERE ADVOCATING AND 1696 00:55:32,295 --> 00:55:34,631 I KNOW I WAS ADVOCATING FOR 1697 00:55:34,631 --> 00:55:35,699 ALLOWING THE PROVIDERS TO BE 1698 00:55:35,699 --> 00:55:37,534 ABLE TO USE SOME OF THE, THE 1699 00:55:37,534 --> 00:55:38,635 MONEY FOR SECURITY, BECAUSE WE 1700 00:55:38,635 --> 00:55:41,204 KNEW THAT WAS AN ISSUE. AND 1701 00:55:41,204 --> 00:55:43,973 THERE IN THEIR BUILDINGS. AND WE 1702 00:55:43,973 --> 00:55:46,443 WANTED TO MAKE SURE RESIDENTS 1703 00:55:46,443 --> 00:55:47,644 AND THE STAFF THAT WERE WORKING 1704 00:55:47,644 --> 00:55:49,579 IN THE BUILDING ARE SAFE. THAT 1705 00:55:49,579 --> 00:55:54,317 IS REALLY IMPORTANT. SO I GUESS 1706 00:55:54,317 --> 00:55:54,784 MY CONCERN IS NOT THE 1707 00:55:54,784 --> 00:55:56,853 CONTINUATION OF THOSE 1708 00:55:56,853 --> 00:55:58,121 STABILIZATION FUNDS IN A WAY 1709 00:55:58,121 --> 00:55:58,988 THAT, YOU KNOW, TO THE POINT, 1710 00:55:58,988 --> 00:56:00,690 DIRECTOR, YOU JUST SAID ABOUT WE 1711 00:56:00,690 --> 00:56:02,759 NEED TO MAINTAIN THE UNITS WE 1712 00:56:02,759 --> 00:56:05,428 ALREADY HAVE SO WE DON'T LOSE 1713 00:56:05,428 --> 00:56:08,331 THOSE. AND DIRECTOR LARSEN, YOU 1714 00:56:08,331 --> 00:56:09,566 EXPLAINED VERY WELL IN TERMS OF 1715 00:56:09,566 --> 00:56:11,000 WE DON'T WANT TO LOSE THOSE 1716 00:56:11,000 --> 00:56:13,970 BECAUSE THEN WHERE WILL WE BE IF 1717 00:56:13,970 --> 00:56:15,171 WE JUST FOCUS ON CREATING NEW 1718 00:56:15,171 --> 00:56:16,740 UNITS, BUT WE START TO LOSE THE 1719 00:56:16,740 --> 00:56:18,074 ONES WE'VE ALREADY. IT'S GOING 1720 00:56:18,074 --> 00:56:19,743 TO COST MORE THAT WE'VE ALREADY 1721 00:56:19,743 --> 00:56:21,010 CREATED. EXCUSE ME. IT WILL COST 1722 00:56:21,010 --> 00:56:22,479 MORE IN THE LONG RUN. AND SO 1723 00:56:22,479 --> 00:56:24,214 THIS IS WHY I'M REALLY FOCUSED 1724 00:56:24,214 --> 00:56:26,883 ON THIS PIECE ON THE 1725 00:56:26,883 --> 00:56:28,952 STABILIZATION FUNDING, SO THAT 1726 00:56:28,952 --> 00:56:31,521 THE CURRENT PRIVATE PROVIDERS 1727 00:56:31,521 --> 00:56:32,889 ARE CONTINUING TO MAKE SURE THAT 1728 00:56:32,889 --> 00:56:36,493 THOSE UNITS THAT WE HAVE STAY, 1729 00:56:36,493 --> 00:56:39,562 YOU KNOW, USABLE AND, AND THAT 1730 00:56:39,562 --> 00:56:42,031 WE'RE NOT IN THIS SPACE WHERE 1731 00:56:42,031 --> 00:56:43,566 WE'RE LOSING UNITS. BUT I AM, 1732 00:56:43,566 --> 00:56:45,235 AND I APPRECIATE YOU WENT INTO 1733 00:56:45,235 --> 00:56:47,604 THE WEEDS. YOU KNOW, ME, 1734 00:56:47,604 --> 00:56:48,638 DIRECTOR LARSEN, AND WE CAN TAKE 1735 00:56:48,638 --> 00:56:49,906 IT OFFLINE. BUT I REALLY WANT TO 1736 00:56:49,906 --> 00:56:52,008 HEAR I APPRECIATE YOU DOING THE 1737 00:56:52,008 --> 00:56:54,477 ROUNDTABLE, AND I WANT TO HEAR 1738 00:56:54,477 --> 00:56:56,212 MORE ABOUT THE CREATIVE WAYS 1739 00:56:56,212 --> 00:56:58,014 THAT THEY'RE ADDRESSING, TRYING 1740 00:56:58,014 --> 00:57:01,251 TO ALSO ADDRESS THE BEHAVIOR 1741 00:57:01,251 --> 00:57:03,052 CHANGES WITHIN THE RESIDENTS IN 1742 00:57:03,052 --> 00:57:04,754 THOSE UNITS, BECAUSE THIS HAS 1743 00:57:04,754 --> 00:57:06,322 ALSO LED TO SOME ISSUES WITH 1744 00:57:06,322 --> 00:57:07,757 THOSE UNITS. AND WE WANT TO MAKE 1745 00:57:07,757 --> 00:57:09,459 SURE THAT WE'RE ADDRESSING THAT 1746 00:57:09,459 --> 00:57:10,794 AS WELL. SO I WOULD ACTUALLY 1747 00:57:10,794 --> 00:57:12,662 LOVE TO HEAR MORE ABOUT THAT 1748 00:57:12,662 --> 00:57:17,033 OFFLINE AND THAT WAS REALLY ALL 1749 00:57:17,033 --> 00:57:18,201 THE QUESTIONS I HAD. JUST TO 1750 00:57:18,201 --> 00:57:20,069 REITERATE, ON THE STABILIZATION 1751 00:57:20,069 --> 00:57:22,505 FUNDING, HOW IMPORTANT THAT IS. 1752 00:57:22,505 --> 00:57:23,807 AND I WANT TO KNOW WHAT THE YOU 1753 00:57:23,807 --> 00:57:27,577 HAVE THE CORE. I HEARD YOU SAY 1754 00:57:27,577 --> 00:57:29,479 WE HAVE THE CORE SERVICES ARE 1755 00:57:29,479 --> 00:57:31,815 STILL THERE, BUT WILL THAT MEET 1756 00:57:31,815 --> 00:57:33,149 THE NEED? THAT IS THE QUESTION 1757 00:57:33,149 --> 00:57:36,186 THAT I HAVE. SO YOU CAN. 1758 00:57:36,186 --> 00:57:37,821 -- YES, WE HAVE THAT QUESTION 1759 00:57:37,821 --> 00:57:39,222 TOO. AND AS WE CONTINUE TO WORK 1760 00:57:39,222 --> 00:57:41,591 WITH OUR PROVIDERS, REVIEW THE 1761 00:57:41,591 --> 00:57:44,861 DATA AND EVIDENCE THAT WE HAVE, 1762 00:57:44,861 --> 00:57:46,296 WE WILL INFORM OUR INVESTMENT 1763 00:57:46,296 --> 00:57:49,399 DECISIONS INTO THE NEXT YEAR 1764 00:57:49,399 --> 00:57:49,866 AROUND HOW WE BALANCE 1765 00:57:49,866 --> 00:57:52,235 STABILIZATION, INVESTING IN OUR 1766 00:57:52,235 --> 00:57:53,903 PORTFOLIO PRESERVATION, DEBT 1767 00:57:53,903 --> 00:57:55,138 RESTRUCTURING, AND THEN 1768 00:57:55,138 --> 00:57:56,372 INVESTING IN, IN NEW PRODUCTION. 1769 00:57:56,372 --> 00:57:58,508 SO WE HAVE SOME MONTHS TO GET 1770 00:57:58,508 --> 00:58:00,276 THERE. BUT WE, WE DEFINITELY ARE 1771 00:58:00,276 --> 00:58:01,544 HEARING AND SEEING THE NEED. 1772 00:58:01,544 --> 00:58:02,545 -- THANK YOU. AND THE LAST THING 1773 00:58:02,545 --> 00:58:04,614 I'LL SAY IS I WANT TO HEAR 1774 00:58:04,614 --> 00:58:06,916 ABOUT YOUR VACANCIES AND HOW 1775 00:58:06,916 --> 00:58:08,051 MANY UNITS ARE OFFLINE BECAUSE 1776 00:58:08,051 --> 00:58:09,552 THEY NEED TO BE REPAIRED AND 1777 00:58:09,552 --> 00:58:12,322 THINGS OF THAT NATURE, BECAUSE 1778 00:58:12,322 --> 00:58:14,624 THOSE, THOSE DATA POINTS HELP TO 1779 00:58:14,624 --> 00:58:18,628 INFORM ALSO POLICY AROUND THIS. 1780 00:58:18,628 --> 00:58:19,829 SO REALLY APPRECIATE THAT. THANK 1781 00:58:19,829 --> 00:58:21,464 YOU CHAIR. 1782 00:58:21,464 --> 00:58:22,031 -- THANK YOU. COUNCILMEMBER 1783 00:58:22,031 --> 00:58:22,866 RIVERA. COUNCILMEMBER LIN. 1784 00:58:22,866 --> 00:58:24,367 FOLLOWED BY RINCK. SAKA AND 1785 00:58:24,367 --> 00:58:26,269 KETTLE. 1786 00:58:26,269 --> 00:58:26,870 -- THANK YOU CHAIR THANK YOU 1787 00:58:26,870 --> 00:58:29,439 CHAIR PRESENTERS THANK YOU 1788 00:58:29,439 --> 00:58:30,106 COLLEAGUES. I'M GOING TO JUST 1789 00:58:30,106 --> 00:58:31,708 START OFF WITH SOME COMMENTS AND 1790 00:58:31,708 --> 00:58:35,678 THEN A COUPLE QUESTIONS. ONE, 1791 00:58:35,678 --> 00:58:37,747 JUST THANK YOU FOR ALL THE HARD 1792 00:58:37,747 --> 00:58:40,350 WORK THAT WENT INTO THIS BUDGET. 1793 00:58:40,350 --> 00:58:44,187 AND ALL THE HARD WORK THAT HAS 1794 00:58:44,187 --> 00:58:45,755 BEEN DOING. YOU KNOW, I THINK WE 1795 00:58:45,755 --> 00:58:48,258 HAVE BEEN LEADING THE NATION IN 1796 00:58:48,258 --> 00:58:50,193 AFFORDABLE HOUSING PRODUCTION 1797 00:58:50,193 --> 00:58:50,894 FOR QUITE, QUITE SOME TIME, 1798 00:58:50,894 --> 00:58:53,796 WHICH IS AMAZING. AND THAT'S 1799 00:58:53,796 --> 00:58:55,298 THROUGH OUR COMMITMENT AND OUR 1800 00:58:55,298 --> 00:58:58,568 INVESTMENT. IT DOESN'T HAPPEN 1801 00:58:58,568 --> 00:59:02,171 WITHOUT DOLLARS TO INVEST. AND 1802 00:59:02,171 --> 00:59:04,807 SO WE'VE MADE ENORMOUS GAINS IN 1803 00:59:04,807 --> 00:59:06,175 THAT REGARD. AND, YOU KNOW, 1804 00:59:06,175 --> 00:59:07,977 YOU'VE BEEN DESCRIBING SOME OF 1805 00:59:07,977 --> 00:59:10,914 THE HEADWINDS THAT WE'RE FACING 1806 00:59:10,914 --> 00:59:14,017 AND CERTAINLY DON'T WANT TO SLOW 1807 00:59:14,017 --> 00:59:16,286 DOWN. BUT I THINK WE HAVE TO. 1808 00:59:16,286 --> 00:59:18,755 AND WE HAVE BEEN ON THE NEW 1809 00:59:18,755 --> 00:59:20,423 PRODUCTION BECAUSE OF THOSE 1810 00:59:20,423 --> 00:59:21,090 HEADWINDS AND BECAUSE OF THE 1811 00:59:21,090 --> 00:59:23,126 NEED TO FOCUS ON THAT 1812 00:59:23,126 --> 00:59:24,494 PRESERVATION. AND I THINK 1813 00:59:24,494 --> 00:59:27,463 THAT'S WELL WARRANTED. AS YOU 1814 00:59:27,463 --> 00:59:28,965 MENTIONED, DUE TO THINGS THAT 1815 00:59:28,965 --> 00:59:30,033 NOT JUST LOCALLY BUT ACROSS THE 1816 00:59:30,033 --> 00:59:32,502 COUNTRY, THAT AFFORDABLE HOUSING 1817 00:59:32,502 --> 00:59:34,037 PROVIDERS HAVE BEEN FACING, AND 1818 00:59:34,037 --> 00:59:36,072 CERTAINLY AGREE THAT HAVING A 1819 00:59:36,072 --> 00:59:38,508 MAJOR PROVIDER GO THROUGH 1820 00:59:38,508 --> 00:59:40,376 RECEIVERSHIP WOULD END UP 1821 00:59:40,376 --> 00:59:43,046 COSTING MORE IN THE LONG RUN. SO 1822 00:59:43,046 --> 00:59:46,683 I, I ALSO JUST THINK THAT IT'S 1823 00:59:46,683 --> 00:59:47,283 IMPORTANT FOR US TO EVERYBODY 1824 00:59:47,283 --> 00:59:50,353 LOVES A RIBBON CUTTING, BUT 1825 00:59:50,353 --> 00:59:51,487 PRESERVATION IS CRITICAL. AND I 1826 00:59:51,487 --> 00:59:53,790 THINK QUALITY FOR ME IS PERHAPS 1827 00:59:53,790 --> 00:59:55,558 MORE IMPORTANT THAN QUALITY. I 1828 00:59:55,558 --> 00:59:57,126 THINK WE HAVE TO FOCUS ON ON THE 1829 00:59:57,126 --> 01:00:01,664 PEOPLE. AT THE END OF THE DAY, 1830 01:00:01,664 --> 01:00:02,298 YOU KNOW, WE TALK SO MUCH ABOUT 1831 01:00:02,298 --> 01:00:04,167 UNITS. IT'S ABOUT PEOPLE. IT IS 1832 01:00:04,167 --> 01:00:04,734 ABOUT THE PEOPLE THAT LIVE 1833 01:00:04,734 --> 01:00:06,336 THERE, THE FAMILIES. IT IS ABOUT 1834 01:00:06,336 --> 01:00:07,437 THE WORKERS. IT SUPPORT THOSE 1835 01:00:07,437 --> 01:00:09,872 FAMILIES. IT IS ABOUT OUR 1836 01:00:09,872 --> 01:00:11,374 ORGANIZATIONS. AND, YOU KNOW, I 1837 01:00:11,374 --> 01:00:12,575 THINK THE AND WE'VE TALKED ABOUT 1838 01:00:12,575 --> 01:00:16,045 THIS A LOT, BUT, YOU KNOW, THE 1839 01:00:16,045 --> 01:00:16,946 THE FOCUS ON UNITS CAN BE SORT 1840 01:00:16,946 --> 01:00:21,017 OF LEAD TO WEIRD CONSEQUENCES OR 1841 01:00:21,017 --> 01:00:21,651 UNINTENDED CONSEQUENCES. AND I 1842 01:00:21,651 --> 01:00:23,219 THINK, AGAIN, WE NEED TO FOCUS 1843 01:00:23,219 --> 01:00:26,589 ON, ON THE PEOPLE OKAY, A COUPLE 1844 01:00:26,589 --> 01:00:31,194 QUESTIONS. SO THE YEAR IN 1845 01:00:31,194 --> 01:00:31,794 SUPPLEMENTAL ORDINANCE TALKS 1846 01:00:31,794 --> 01:00:33,196 ABOUT A ONE TIME REDUCTION OF 65 1847 01:00:33,196 --> 01:00:35,665 MILLION. IN FORWARD COMMITMENTS. 1848 01:00:35,665 --> 01:00:37,500 AND I THINK FORWARD COMMITMENTS 1849 01:00:37,500 --> 01:00:39,002 IS PROBABLY GOING TO BE 1850 01:00:39,002 --> 01:00:41,437 CONFUSING FOR A LOT OF FOLKS WHO 1851 01:00:41,437 --> 01:00:42,005 MAYBE DON'T DO AFFORDABLE 1852 01:00:42,005 --> 01:00:45,274 HOUSING FINANCE EVERY DAY. YOU 1853 01:00:45,274 --> 01:00:50,179 KNOW, I THINK THERE'S A. IN 1854 01:00:50,179 --> 01:00:51,581 TERMS OF FINANCING, YOU KNOW, I 1855 01:00:51,581 --> 01:00:52,915 KNOW THAT WE MAKE AWARDS. IT CAN 1856 01:00:52,915 --> 01:00:55,585 TAKE MANY, MANY YEARS. I KNOW 1857 01:00:55,585 --> 01:00:58,121 THERE'S OFTEN TIMES A LARGE 1858 01:00:58,121 --> 01:00:59,255 CASH BALANCE BECAUSE OF THAT, 1859 01:00:59,255 --> 01:01:00,657 BUT IT'S IMPORTANT FOR US TO, 1860 01:01:00,657 --> 01:01:02,392 WHEN WE MAKE AN AWARD TO STAND 1861 01:01:02,392 --> 01:01:04,994 BEHIND IT AND TO BE ABLE TO DO 1862 01:01:04,994 --> 01:01:06,295 THAT. AND SO I KNOW THERE'S 1863 01:01:06,295 --> 01:01:09,399 ALWAYS SORT OF SOME CASH SORT OF 1864 01:01:09,399 --> 01:01:11,134 MANAGEMENT THAT HAPPENS WITH, 1865 01:01:11,134 --> 01:01:13,503 OH, I DO JUST WANT TO HIGHLIGHT 1866 01:01:13,503 --> 01:01:15,705 THE IMPORTANCE OF THIS SORT OF 1867 01:01:15,705 --> 01:01:16,939 CHANGE JUST FOR OUR COMMUNITY 1868 01:01:16,939 --> 01:01:18,741 TO, TO BE AWARE THAT THERE IS A 1869 01:01:18,741 --> 01:01:21,577 CHANGE HERE WITH THIS FORWARD 1870 01:01:21,577 --> 01:01:24,681 COMMITMENT AND WHAT THAT MEANS. 1871 01:01:24,681 --> 01:01:26,749 AND, YOU KNOW, JUST A LITTLE BIT 1872 01:01:26,749 --> 01:01:29,852 OF A CONCERN AND WHICH I'LL 1873 01:01:29,852 --> 01:01:30,987 TALK TO IN A MOMENT, BUT COULD 1874 01:01:30,987 --> 01:01:32,088 YOU JUST TALK A LITTLE BIT ABOUT 1875 01:01:32,088 --> 01:01:34,223 WHAT IT MEANS TO BE DOING THIS 1876 01:01:34,223 --> 01:01:36,959 FORWARD COMMITMENT SORT OF 1877 01:01:36,959 --> 01:01:38,227 LOGISTICALLY, I GUESS I SORT OF 1878 01:01:38,227 --> 01:01:39,662 SEE THIS AS A LITTLE BIT OF 1879 01:01:39,662 --> 01:01:41,697 BORROWING FROM FUTURE YEARS OF 1880 01:01:41,697 --> 01:01:43,800 PAYROLL EXPENSE TAX, AND I'M NOT 1881 01:01:43,800 --> 01:01:44,534 OPPOSED TO THAT. BUT I JUST WANT 1882 01:01:44,534 --> 01:01:47,103 TO, YOU KNOW, KIND OF FULL, FULL 1883 01:01:47,103 --> 01:01:47,804 TRANSPARENCY OF WHAT'S HAPPENING 1884 01:01:47,804 --> 01:01:54,077 HERE 1885 01:01:54,077 --> 01:01:54,677 -- SO AS IS MANAGING THE $65 1886 01:01:54,677 --> 01:01:58,781 MILLION REALLOCATION, WE WILL BE 1887 01:01:58,781 --> 01:01:59,382 PURSUING MULTIPLE STRATEGIES. 1888 01:01:59,382 --> 01:02:00,349 FORWARD COMMITMENTS WILL BE ONE 1889 01:02:00,349 --> 01:02:01,984 OF THOSE STRATEGIES. BUT THERE 1890 01:02:01,984 --> 01:02:03,686 MAY BE OTHER STRATEGIES THAT WE 1891 01:02:03,686 --> 01:02:07,824 PURSUE AS WELL. WE ARE ALSO VERY 1892 01:02:07,824 --> 01:02:09,692 CAUTIOUS AND NEEDING TO BE 1893 01:02:09,692 --> 01:02:10,860 REALLY RESPONSIBLE IN THESE 1894 01:02:10,860 --> 01:02:12,361 TIMES THAT WE'RE IN, AS YOU 1895 01:02:12,361 --> 01:02:14,363 HEARD ME DESCRIBE, ALL THE 1896 01:02:14,363 --> 01:02:17,834 CONDITIONS THAT ARE CHANGING 1897 01:02:17,834 --> 01:02:21,370 AROUND US. WE KNOW FOR SURE, AS 1898 01:02:21,370 --> 01:02:24,140 PART OF THIS REALLOCATION, THAT 1899 01:02:24,140 --> 01:02:26,742 THE NOFA THAT WE ARE IMMINENTLY 1900 01:02:26,742 --> 01:02:27,376 RELEASING FOR DEBT RESTRUCTURING 1901 01:02:27,376 --> 01:02:29,512 AND CAPITAL IMPROVEMENTS WILL BE 1902 01:02:29,512 --> 01:02:31,948 FUNDED WITH 2027 JUMPSTART 1903 01:02:31,948 --> 01:02:34,617 PAYROLL EXPENSE TAX. IT WAS 1904 01:02:34,617 --> 01:02:36,018 INITIALLY PLANNED FOR 2026. THAT 1905 01:02:36,018 --> 01:02:37,653 ONE WILL BE MOVING, SO IT'S A 1906 01:02:37,653 --> 01:02:39,722 FORM OF FORWARD COMMIT, BUT 1907 01:02:39,722 --> 01:02:40,990 IT'S ALSO AWARDS WILL SORT OF 1908 01:02:40,990 --> 01:02:43,960 BE IN ACTION NEXT YEAR. AND WE 1909 01:02:43,960 --> 01:02:46,963 ANTICIPATE THAT IS A RELATIVELY 1910 01:02:46,963 --> 01:02:48,664 LOW RISK USE OF THAT INVESTMENT 1911 01:02:48,664 --> 01:02:50,800 IN THAT TIME PERIOD. THOSE 1912 01:02:50,800 --> 01:02:53,136 DOLLARS, AGAIN, DO MOVE VERY 1913 01:02:53,136 --> 01:02:55,371 QUICKLY BECAUSE OF THE TYPOLOGY 1914 01:02:55,371 --> 01:02:56,906 OF THAT INVESTMENT. WE FEEL 1915 01:02:56,906 --> 01:02:58,207 CONFIDENT THAT THAT MAKES A LOT 1916 01:02:58,207 --> 01:03:03,045 OF SENSE FOR 2027, FOR THE 1917 01:03:03,045 --> 01:03:03,679 REMAINING AMOUNT, WE HAVE SOME 1918 01:03:03,679 --> 01:03:08,151 WORK TO DO. WE ARE TALKING 1919 01:03:08,151 --> 01:03:08,718 INTERNALLY ABOUT DIFFERENT 1920 01:03:08,718 --> 01:03:10,887 OPTIONS AND STRATEGIES. WE WILL 1921 01:03:10,887 --> 01:03:13,556 REALLY GET TO WORK ONCE BUDGET 1922 01:03:13,556 --> 01:03:15,191 PASSES. COUNCIL AND WE KNOW FOR 1923 01:03:15,191 --> 01:03:17,293 SURE WHAT WE HAVE BEFORE US. BUT 1924 01:03:17,293 --> 01:03:18,828 THE SENIOR TEAM IS REALLY WELL 1925 01:03:18,828 --> 01:03:21,764 AWARE AND WORKING HARD. AGAIN, 1926 01:03:21,764 --> 01:03:24,033 THIS IS VERY ISOLATED TO RENTAL 1927 01:03:24,033 --> 01:03:25,768 HOUSING CAPITAL. ALL OF OUR 1928 01:03:25,768 --> 01:03:27,203 OTHER INVESTMENT TYPES AND OUR 1929 01:03:27,203 --> 01:03:29,272 STAFF ARE PROTECTED IN THIS 1930 01:03:29,272 --> 01:03:31,107 BUDGET. SO WE'LL BE WORKING 1931 01:03:31,107 --> 01:03:32,508 REALLY CLOSELY WITH OUR TEAM, 1932 01:03:32,508 --> 01:03:34,143 OUR CITY BUDGET OFFICE 1933 01:03:34,143 --> 01:03:35,511 COLLEAGUES AND THE MAYOR'S 1934 01:03:35,511 --> 01:03:38,414 OFFICE TO MAKE THOSE DECISIONS 1935 01:03:38,414 --> 01:03:39,849 IN THE RIGHT TIME THAT THEY 1936 01:03:39,849 --> 01:03:41,717 SHOULD BE MADE. BECAUSE AGAIN, 1937 01:03:41,717 --> 01:03:44,120 SO MUCH IS CHANGING RIGHT NOW 1938 01:03:44,120 --> 01:03:45,021 WITH LEVERAGE, TAX CREDIT, 1939 01:03:45,021 --> 01:03:47,790 PRICING, INVESTOR DEMANDS, NEEDS 1940 01:03:47,790 --> 01:03:50,159 IN THE AFFORDABLE HOUSING SECTOR 1941 01:03:50,159 --> 01:03:53,129 AREA, MEDIAN INCOME SHIFTING 1942 01:03:53,129 --> 01:03:54,197 THAT THERE'S THERE'S JUST A LOT 1943 01:03:54,197 --> 01:03:57,366 THAT WE ARE WRESTLING WITH ALL 1944 01:03:57,366 --> 01:03:58,534 AT ONCE. AND IT'S IMPORTANT 1945 01:03:58,534 --> 01:03:59,969 THAT WE ARE MAKING DECISIONS 1946 01:03:59,969 --> 01:04:01,404 ABOUT THE WAY THAT OUR DOLLARS 1947 01:04:01,404 --> 01:04:04,006 GO OUT THE DOOR INFORMED WITH 1948 01:04:04,006 --> 01:04:06,342 THE MOST CURRENT CONDITIONS. SO 1949 01:04:06,342 --> 01:04:09,045 WE WILL BE COMING BACK TO THAT 1950 01:04:09,045 --> 01:04:09,612 BROADER DISCUSSION DECISION 1951 01:04:09,612 --> 01:04:11,681 ABOUT FUTURE WORK IN SEVERAL 1952 01:04:11,681 --> 01:04:15,751 MONTHS 1953 01:04:15,751 --> 01:04:16,919 -- AND I THINK I WANT TO JUST 1954 01:04:16,919 --> 01:04:18,855 ADD HERE SORT OF BROADER BECAUSE 1955 01:04:18,855 --> 01:04:20,856 I'M ANTICIPATING MORE MORE 1956 01:04:20,856 --> 01:04:23,860 QUESTIONS ON THIS AREA. I THINK 1957 01:04:23,860 --> 01:04:25,328 THIS IS A A STRATEGY THAT THE 1958 01:04:25,328 --> 01:04:26,629 MAYOR'S OFFICE AND THE BUDGET 1959 01:04:26,629 --> 01:04:27,897 OFFICE KIND OF PUT FORWARD AND 1960 01:04:27,897 --> 01:04:29,365 WORKING IN PARTNERSHIP WITH THE 1961 01:04:29,365 --> 01:04:30,766 OFFICE OF HOUSING, AND THEY'RE 1962 01:04:30,766 --> 01:04:31,934 BEING VERY THOUGHTFUL IN 1963 01:04:31,934 --> 01:04:34,503 THINKING THROUGH HOW TO ACTUALLY 1964 01:04:34,503 --> 01:04:35,972 IMPLEMENT THIS CHANGE. WHAT WE 1965 01:04:35,972 --> 01:04:39,041 SEE THIS AS AN AS AN OPPORTUNITY 1966 01:04:39,041 --> 01:04:41,377 TO BOTH MAINTAIN THE ONGOING 1967 01:04:41,377 --> 01:04:41,911 INVESTMENTS IN AFFORDABLE 1968 01:04:41,911 --> 01:04:45,448 HOUSING. AND, FRANKLY, PRESERVE 1969 01:04:45,448 --> 01:04:46,048 MANY OTHER INVESTMENTS ACROSS 1970 01:04:46,048 --> 01:04:49,151 THE BUDGET IN KEY AREAS. SO WE 1971 01:04:49,151 --> 01:04:50,720 APPRECIATE HOW THE OFFICE OF 1972 01:04:50,720 --> 01:04:52,521 HOUSING IS TAKING ON THIS 1973 01:04:52,521 --> 01:04:53,589 APPROACH THIS YEAR. JUST IN 1974 01:04:53,589 --> 01:04:55,758 THEIR JUMPSTART FUNDS WITH A 1975 01:04:55,758 --> 01:04:57,660 REALLY THOUGHTFUL AND CAUTIOUS, 1976 01:04:57,660 --> 01:04:59,695 CAUTIOUS MANNER AND WILL BE GOOD 1977 01:04:59,695 --> 01:05:00,296 PARTNERS TOGETHER AND SORT OF 1978 01:05:00,296 --> 01:05:01,597 THINKING THROUGH HOW TO FULLY 1979 01:05:01,597 --> 01:05:03,399 IMPLEMENT THIS. I ALSO WANT TO 1980 01:05:03,399 --> 01:05:05,201 BE REALLY CLEAR THAT PROJECTS 1981 01:05:05,201 --> 01:05:06,936 THAT HAVE ALREADY RECEIVED 1982 01:05:06,936 --> 01:05:09,538 AWARDS WILL BE PAID FIRST. WE IN 1983 01:05:09,538 --> 01:05:10,973 THE BUDGET OFFICE AND IN 1984 01:05:10,973 --> 01:05:11,807 PARTNERSHIP WITH THE OFFICE OF 1985 01:05:11,807 --> 01:05:15,845 HOUSING, HAVE LOOKED AT SORT OF 1986 01:05:15,845 --> 01:05:16,612 THE ACTUAL SPEND OF EXISTING, 1987 01:05:16,612 --> 01:05:18,648 YOU KNOW, OF EXISTING PROJECTS 1988 01:05:18,648 --> 01:05:20,082 AND THINK WE HAVE TAKEN A 1989 01:05:20,082 --> 01:05:22,351 RELATIVELY CONSERVATIVE 1990 01:05:22,351 --> 01:05:25,554 APPROACH. BUT I STILL, AS 1991 01:05:25,554 --> 01:05:26,656 DIRECTOR LARSON MENTIONED, WE 1992 01:05:26,656 --> 01:05:28,858 WILL BE CAREFULLY SORT OF 1993 01:05:28,858 --> 01:05:29,458 MONITORING THIS AND THINKING 1994 01:05:29,458 --> 01:05:30,826 CAREFULLY ABOUT HOW WE ARE 1995 01:05:30,826 --> 01:05:32,461 THINKING ABOUT FORWARD 1996 01:05:32,461 --> 01:05:33,929 COMMITMENTS, HOW MUCH NEEDS TO 1997 01:05:33,929 --> 01:05:36,165 BE CONSIDERED FOR AGENCY 1998 01:05:36,165 --> 01:05:36,832 SUPPORTS AND THAT TYPE OF THING. 1999 01:05:36,832 --> 01:05:40,870 SO THIS WILL BE A REAL TIME 2000 01:05:40,870 --> 01:05:42,705 MONITORING WITH. SO WE'LL BE 2001 01:05:42,705 --> 01:05:44,240 MEETING REGULARLY AND WE MEET 2002 01:05:44,240 --> 01:05:45,641 QUARTERLY ON BUDGETING TO 2003 01:05:45,641 --> 01:05:47,977 ACTUALS AND THAT SORT OF THING. 2004 01:05:47,977 --> 01:05:50,846 SO BE A CAUTIOUS APPROACH 2005 01:05:50,846 --> 01:05:54,050 -- THANK YOU. JUST A COUPLE MORE 2006 01:05:54,050 --> 01:05:55,151 QUESTIONS AND I'M GOING TO BE A 2007 01:05:55,151 --> 01:05:56,819 LITTLE BIT OF A DEBBIE DOWNER. 2008 01:05:56,819 --> 01:05:58,187 HOPEFULLY I'M NOT SORT OF 2009 01:05:58,187 --> 01:06:00,489 JINXING ANYTHING HERE, BUT 2010 01:06:00,489 --> 01:06:02,024 CERTAINLY CONCERNED ABOUT WE'RE 2011 01:06:02,024 --> 01:06:04,827 SEEING SOME WARNING SIGNS IN OUR 2012 01:06:04,827 --> 01:06:06,495 ECONOMY. RIGHT. AND, YOU KNOW, 2013 01:06:06,495 --> 01:06:10,766 JUMP START IS STILL A RELATIVELY 2014 01:06:10,766 --> 01:06:14,070 NEW, YOU KNOW, INCOME STREAM OR 2015 01:06:14,070 --> 01:06:16,739 REVENUE STREAM FOR US. AND WE 2016 01:06:16,739 --> 01:06:18,407 HAVE NOT, AGAIN, SORT OF I 2017 01:06:18,407 --> 01:06:21,143 DON'T WANT TO JINX US HERE, BUT 2018 01:06:21,143 --> 01:06:23,245 WE'VE NOT SORT OF SEEN A MAJOR 2019 01:06:23,245 --> 01:06:24,647 DOWNTURN LIKE WE DID, YOU KNOW, 2020 01:06:24,647 --> 01:06:26,215 PREVIOUSLY. AND, YOU KNOW, 2021 01:06:26,215 --> 01:06:29,752 THERE'S A LOT OF TALK ABOUT. 2022 01:06:29,752 --> 01:06:32,121 EMPLOYMENT LEAVING THE CITY. AND 2023 01:06:32,121 --> 01:06:36,492 IN SOME WAYS THAT'S HARDER THAN 2024 01:06:36,492 --> 01:06:37,760 SOMETHING LIKE A STOCK MARKET 2025 01:06:37,760 --> 01:06:39,428 DOWNTURN. AND SO MUCH OF THAT 2026 01:06:39,428 --> 01:06:40,096 PAYROLL EXPENSE TAX IS NOT JUST 2027 01:06:40,096 --> 01:06:44,500 SORT OF NUMBER OF EMPLOYEES, BUT 2028 01:06:44,500 --> 01:06:46,335 BASED ON THOSE STOCK MARKET, 2029 01:06:46,335 --> 01:06:49,338 WHICH WHICH IS PART OF THAT 2030 01:06:49,338 --> 01:06:52,041 INCOME THAT IS BASED UPON. SO 2031 01:06:52,041 --> 01:06:54,176 JUST CURIOUS, I MEAN, I'M JUST 2032 01:06:54,176 --> 01:06:55,111 CONCERNED, I WANT TO MAKE SURE 2033 01:06:55,111 --> 01:06:56,779 THAT WE ARE BEING THAT WE HAVE 2034 01:06:56,779 --> 01:06:58,447 SOME SORT OF CONTINGENCY PLAN, 2035 01:06:58,447 --> 01:07:02,885 ESPECIALLY AS IF WE START TO DO 2036 01:07:02,885 --> 01:07:03,519 THINGS LIKE FORWARD COMMITMENTS 2037 01:07:03,519 --> 01:07:07,823 AROUND THE PAYROLL TAX. AND, YOU 2038 01:07:07,823 --> 01:07:10,493 KNOW, JUST IF THERE ARE ANY SORT 2039 01:07:10,493 --> 01:07:12,395 OF BACKUP PLANS, I JUST THINK 2040 01:07:12,395 --> 01:07:14,530 ABOUT, YOU KNOW, TEN YEARS AGO, 2041 01:07:14,530 --> 01:07:18,534 WE WE DID SOME BONDING FOR 2042 01:07:18,534 --> 01:07:20,102 AFFORDABLE HOUSING. I JUST WANT 2043 01:07:20,102 --> 01:07:23,105 TO MAKE SURE THAT, THAT WE ARE 2044 01:07:23,105 --> 01:07:25,541 READY AND WE ARE. YEAH, THINKING 2045 01:07:25,541 --> 01:07:28,711 ABOUT SORT OF WORST CASE 2046 01:07:28,711 --> 01:07:29,011 SCENARIOS. 2047 01:07:29,011 --> 01:07:29,645 -- YEAH. THESE ARE THE THINGS 2048 01:07:29,645 --> 01:07:32,681 THAT KEEP ME UP AT KEEP ME UP AT 2049 01:07:32,681 --> 01:07:33,849 NIGHT. I THINK ONE OF ONE OF THE 2050 01:07:33,849 --> 01:07:35,551 CHALLENGES THAT WE'RE ALL 2051 01:07:35,551 --> 01:07:38,354 CONFRONTED WITH RIGHT NOW IS 2052 01:07:38,354 --> 01:07:40,356 MANY OF OUR REVENUE SOURCES THAT 2053 01:07:40,356 --> 01:07:41,891 ARE SEEING ANY GROWTH ARE SOME 2054 01:07:41,891 --> 01:07:43,993 OF OUR MOST VOLATILE, WHILE OUR 2055 01:07:43,993 --> 01:07:45,394 MOST STABLE SOURCE OF REVENUE 2056 01:07:45,394 --> 01:07:47,029 LIKE THAT SUPPORTS GENERAL 2057 01:07:47,029 --> 01:07:47,663 GOVERNMENT INVESTMENTS, PROPERTY 2058 01:07:47,663 --> 01:07:50,966 TAX, FOR EXAMPLE, IS CAPPED AT 2059 01:07:50,966 --> 01:07:52,535 THE STATE LEVEL AND DOESN'T 2060 01:07:52,535 --> 01:07:53,502 SORT OF GROW WITH WITH OUR 2061 01:07:53,502 --> 01:07:57,573 COSTS. SO THAT IS, I WOULD SAY, 2062 01:07:57,573 --> 01:07:58,874 A RISK ACROSS THE THE BUDGET. I 2063 01:07:58,874 --> 01:07:59,875 THINK WE ARE DOING A COUPLE OF 2064 01:07:59,875 --> 01:08:02,878 THINGS. ONE, I WOULD SAY AGAIN, 2065 01:08:02,878 --> 01:08:04,447 OFFICE OF HOUSING IS TAKING A 2066 01:08:04,447 --> 01:08:06,449 VERY CAUTIOUS AND RISK AVERSE 2067 01:08:06,449 --> 01:08:07,116 APPROACH TO HOW WE MANAGE THIS. 2068 01:08:07,116 --> 01:08:09,452 SO I THINK THAT IS ONE THAT WILL 2069 01:08:09,452 --> 01:08:11,353 BE VERY CAREFUL OF HOW WE ARE 2070 01:08:11,353 --> 01:08:13,088 DEPLOYING THE VARIOUS STRATEGIES 2071 01:08:13,088 --> 01:08:14,557 TO MANAGE THIS. SECOND, WE ARE 2072 01:08:14,557 --> 01:08:17,760 WORKING REALLY HARD TO FUND THE 2073 01:08:17,760 --> 01:08:20,362 JUMPSTART RESERVE THAT WILL, BY 2074 01:08:20,362 --> 01:08:21,997 THE END OF THE BIENNIUM, HAVE 2075 01:08:21,997 --> 01:08:23,566 OVER $30 MILLION. AND I THINK BY 2076 01:08:23,566 --> 01:08:26,669 2030 WILL BE FULLY FUNDED AT 10% 2077 01:08:26,669 --> 01:08:28,871 OF ANNUAL REVENUES, ASSUMING NO 2078 01:08:28,871 --> 01:08:30,172 CHANGE IN REVENUE. IN ADDITION, 2079 01:08:30,172 --> 01:08:33,476 THE BUDGET INCLUDES THE ANNUAL 2080 01:08:33,476 --> 01:08:34,610 REQUIRED CONTRIBUTIONS TO OUR 2081 01:08:34,610 --> 01:08:36,679 EMERGENCY FUNDS AND OUR REVENUE 2082 01:08:36,679 --> 01:08:37,246 STABILIZATION FUNDS FOR THE 2083 01:08:37,246 --> 01:08:38,914 GENERAL FUND, AND DOESN'T DRAW 2084 01:08:38,914 --> 01:08:42,084 ON ANY OF THESE RESERVES IN THIS 2085 01:08:42,084 --> 01:08:43,152 BIENNIUM OR IN THE PROJECTED 2086 01:08:43,152 --> 01:08:44,787 FUTURE YEARS THAT ARE PART OF 2087 01:08:44,787 --> 01:08:46,922 THE FINANCIAL PLAN. SO THERE IS 2088 01:08:46,922 --> 01:08:49,225 ALWAYS RISK BECAUSE ANY BUDGET 2089 01:08:49,225 --> 01:08:52,661 IS BASED ON A FORECAST. AND SO 2090 01:08:52,661 --> 01:08:53,496 THERE ARE SOME RISKS THERE. BUT 2091 01:08:53,496 --> 01:08:56,365 I THINK WE ARE BEING REASONABLY 2092 01:08:56,365 --> 01:08:57,766 CAUTIOUS AND AGAIN, WILL 2093 01:08:57,766 --> 01:08:59,368 CONTINUE TO MONITOR AND NOT SORT 2094 01:08:59,368 --> 01:09:01,437 OF SPEND ALL THE MONEY IN 2095 01:09:01,437 --> 01:09:02,938 JANUARY BEFORE WE SEE WHAT IS 2096 01:09:02,938 --> 01:09:05,441 HAPPENING IN THE MARKET. 2097 01:09:05,441 --> 01:09:06,775 -- THANK YOU SO MUCH. FINAL 2098 01:09:06,775 --> 01:09:09,812 QUESTION IS JUST RENTAL 2099 01:09:09,812 --> 01:09:12,615 ASSISTANCE. I'M NOT SURE IF 2100 01:09:12,615 --> 01:09:15,618 JUST IN GENERAL, YOU KNOW, WHERE 2101 01:09:15,618 --> 01:09:16,252 RENTAL ASSISTANCE FALLS WITHIN 2102 01:09:16,252 --> 01:09:18,254 OUR SORT OF LARGER STRATEGIES. 2103 01:09:18,254 --> 01:09:19,889 AND I KNOW THAT WE'RE NOT THE 2104 01:09:19,889 --> 01:09:20,890 ONLY PLAYER. OBVIOUSLY, THERE'S, 2105 01:09:20,890 --> 01:09:23,125 YOU KNOW, SECTION EIGHT, OTHER 2106 01:09:23,125 --> 01:09:25,161 SORT OF FORMS OF RENTAL 2107 01:09:25,161 --> 01:09:28,864 ASSISTANCE OUT THERE. BUT AGAIN, 2108 01:09:28,864 --> 01:09:30,099 ALSO JUST WONDERING, YOU KNOW, 2109 01:09:30,099 --> 01:09:32,368 WE'VE WE'VE SEEN A LOT OF JOB 2110 01:09:32,368 --> 01:09:33,903 LOSSES. AND I'M JUST WONDERING 2111 01:09:33,903 --> 01:09:35,070 ABOUT WHETHER THERE MIGHT BE A 2112 01:09:35,070 --> 01:09:38,173 NEED FOR GREATER RENTAL 2113 01:09:38,173 --> 01:09:40,476 ASSISTANCE IN THE COMING YEARS. 2114 01:09:40,476 --> 01:09:46,682 AND JUST, WE CAN HUDDLE OFFLINE. 2115 01:09:46,682 --> 01:09:47,283 AND, YOU KNOW, OBVIOUSLY, IF 2116 01:09:47,283 --> 01:09:48,951 THERE IS SOME SORT OF LARGER 2117 01:09:48,951 --> 01:09:51,954 DOWNTURN, THERE WILL BE A LOT OF 2118 01:09:51,954 --> 01:09:52,555 REVISITING OF OUR ASSUMPTIONS 2119 01:09:52,555 --> 01:09:55,558 AND A LOT OF WORK TO BE DONE IN 2120 01:09:55,558 --> 01:09:56,859 PIVOTING. BUT JUST WANT TO PUT 2121 01:09:56,859 --> 01:09:59,194 THAT OUT THERE THAT I COULD SEE 2122 01:09:59,194 --> 01:10:01,730 A GREATER NEED FOR RENTAL 2123 01:10:01,730 --> 01:10:02,364 ASSISTANCE, AND ESPECIALLY WITH 2124 01:10:02,364 --> 01:10:04,633 HOW LONG IT TAKES TO DEPLOY SOME 2125 01:10:04,633 --> 01:10:07,136 OF OUR CAPITAL AND GET HOUSING 2126 01:10:07,136 --> 01:10:09,405 ONLINE, THAT WE COULD 2127 01:10:09,405 --> 01:10:10,673 POTENTIALLY HAVE, YOU KNOW, 2128 01:10:10,673 --> 01:10:12,274 BETTER RESULTS WITH, WITH A 2129 01:10:12,274 --> 01:10:13,609 SLIGHTLY LARGER INVESTMENT IN 2130 01:10:13,609 --> 01:10:15,244 RENTAL ASSISTANCE. THANK YOU. 2131 01:10:15,244 --> 01:10:17,379 -- I THINK RENTAL ASSISTANCE IS 2132 01:10:17,379 --> 01:10:19,114 INTERESTING AS WELL AS AN 2133 01:10:19,114 --> 01:10:22,785 ONGOING OPERATING SUBSIDY, 2134 01:10:22,785 --> 01:10:23,919 SHALLOW, DEEP THERE WE ARE 2135 01:10:23,919 --> 01:10:24,954 MOVING MORE RENTAL ASSISTANCE 2136 01:10:24,954 --> 01:10:26,488 DOLLARS OUT THE DOOR THIS YEAR. 2137 01:10:26,488 --> 01:10:28,023 HSD IS OUR ADMINISTRATOR, ALSO 2138 01:10:28,023 --> 01:10:29,858 OF OUR LEVY RENTAL ASSISTANCE 2139 01:10:29,858 --> 01:10:31,927 FUNDS. THERE IS A LOT OF NEED 2140 01:10:31,927 --> 01:10:33,495 OUT THERE. WE'RE HEARING FROM 2141 01:10:33,495 --> 01:10:34,129 PROVIDERS THAT THEY'RE REALLY 2142 01:10:34,129 --> 01:10:35,297 LOOKING TO THESE FUNDS THAT WILL 2143 01:10:35,297 --> 01:10:38,067 BE RELEASED VERY SOON, SO THAT 2144 01:10:38,067 --> 01:10:39,501 THAT WOULD BE A GOOD 2145 01:10:39,501 --> 01:10:41,403 CONVERSATION TO COME BACK TO. 2146 01:10:41,403 --> 01:10:43,105 -- THANK YOU. THANK YOU, CHAIR. 2147 01:10:43,105 --> 01:10:44,206 -- COUNCILMEMBER LIN ANYTHING 2148 01:10:44,206 --> 01:10:45,774 FURTHER? NO. ALL RIGHT. WE'VE 2149 01:10:45,774 --> 01:10:46,742 GOT COUNCILMEMBER RINCK, SAKA 2150 01:10:46,742 --> 01:10:48,811 AND KETTLE. AND FOR THE RECORD, 2151 01:10:48,811 --> 01:10:49,845 COUNCILMEMBER SAKA HAS BEEN HERE 2152 01:10:49,845 --> 01:10:51,714 SINCE THE START, JUST REMOTE AND 2153 01:10:51,714 --> 01:10:52,214 THEN IN PERSON. COUNCIL 2154 01:10:52,214 --> 01:10:53,015 PRESIDENT HAS BEEN HERE SINCE 2155 01:10:53,015 --> 01:10:56,352 THE BEGINNING OF THIS 2156 01:10:56,352 --> 01:10:56,919 PRESENTATION. COUNCILMEMBER 2157 01:10:56,919 --> 01:10:58,354 KETTLE WAS HAS BEEN HERE FOR AT 2158 01:10:58,354 --> 01:10:59,855 LEAST A HALF OF AN HOUR. SO WITH 2159 01:10:59,855 --> 01:11:01,957 THAT COUNCILMEMBER RINCK FLOOR 2160 01:11:01,957 --> 01:11:03,726 IS YOURS. 2161 01:11:03,726 --> 01:11:04,860 -- THANK YOU, CHAIR STRAUSS, AND 2162 01:11:04,860 --> 01:11:06,328 THANK YOU SO MUCH TO THE WHOLE 2163 01:11:06,328 --> 01:11:07,997 TEAM AT THE OFFICE OF HOUSING. 2164 01:11:07,997 --> 01:11:08,964 DIRECTOR LARSON, THANK YOU FOR 2165 01:11:08,964 --> 01:11:09,665 YOUR WORK, AND I WANT TO TAKE 2166 01:11:09,665 --> 01:11:11,300 THIS OPPORTUNITY TO THANK YOU 2167 01:11:11,300 --> 01:11:12,668 FOR YOUR PARTNERSHIP AROUND THE 2168 01:11:12,668 --> 01:11:15,671 CONTINUUM OF CARE FUNDING 2169 01:11:15,671 --> 01:11:17,139 FIASCO, NEVER ENDING JOURNEY 2170 01:11:17,139 --> 01:11:19,308 THAT WE'VE ALL BEEN ON AS THESE 2171 01:11:19,308 --> 01:11:20,776 CRUCIAL FEDERAL FUNDS HAVE BEEN 2172 01:11:20,776 --> 01:11:22,745 HELD IN LIMBO FOR SOME TIME. I 2173 01:11:22,745 --> 01:11:24,313 WANT TO THANK THE OFFICE OF 2174 01:11:24,313 --> 01:11:26,515 HOUSING FOR YOUR PARTNERSHIP AND 2175 01:11:26,515 --> 01:11:28,217 PARTICIPATION AT THOSE KIND OF 2176 01:11:28,217 --> 01:11:28,817 STRATEGIC PLANNING TABLES TO 2177 01:11:28,817 --> 01:11:29,518 FIGURE OUT HOW WE CHART A PATH 2178 01:11:29,518 --> 01:11:32,121 HERE TO STABILIZE THAT HOUSING 2179 01:11:32,121 --> 01:11:35,024 FOR 4500 HOUSEHOLDS IN OUR 2180 01:11:35,024 --> 01:11:37,159 REGION. SO HUGE GRATITUDE TO 2181 01:11:37,159 --> 01:11:38,894 YOU. AND THANK YOU ALSO FOR YOUR 2182 01:11:38,894 --> 01:11:40,462 WORK ALONGSIDE MY OFFICE IN 2183 01:11:40,462 --> 01:11:42,498 SUPPORTING AND EXPLORING WAYS WE 2184 01:11:42,498 --> 01:11:45,100 CAN SUPPORT MORE COMMUNITY LED 2185 01:11:45,100 --> 01:11:45,701 AFFORDABLE HOUSING EFFORTS. I 2186 01:11:45,701 --> 01:11:47,936 HAVE JUST A COUPLE OF QUESTIONS 2187 01:11:47,936 --> 01:11:50,973 FOR TODAY. REALLY, JUST TO 2188 01:11:50,973 --> 01:11:51,573 FOCUSING IN ON THE COMMUNITY 2189 01:11:51,573 --> 01:11:55,077 SELF-DETERMINATION FUND. LAST 2190 01:11:55,077 --> 01:11:57,680 YEAR STATED THAT YOU ALL WERE 2191 01:11:57,680 --> 01:12:00,082 DEDICATING 24 MILLION TOWARDS 2192 01:12:00,082 --> 01:12:00,716 THE COMMUNITY SELF-DETERMINATION 2193 01:12:00,716 --> 01:12:02,785 FUND. MY QUESTION IS, WAS ALL OF 2194 01:12:02,785 --> 01:12:05,921 THAT MONEY USED FOR THAT 2195 01:12:05,921 --> 01:12:07,523 PURPOSE? 2196 01:12:07,523 --> 01:12:10,225 -- ARE YOU ASKING ABOUT 2026 OR 2197 01:12:10,225 --> 01:12:14,897 2025. 2198 01:12:14,897 --> 01:12:15,164 -- 2025. 2199 01:12:15,164 --> 01:12:17,499 -- 2025, 2025? YES. ALL 2200 01:12:17,499 --> 01:12:20,402 COMMUNITY SELF-DETERMINATION 2201 01:12:20,402 --> 01:12:22,604 FUNDS WERE DISTRIBUTED TO 2202 01:12:22,604 --> 01:12:25,474 PROJECTS THAT ARE COMMUNITY 2203 01:12:25,474 --> 01:12:28,310 BASED ORGANIZATIONS DEVELOPED 2204 01:12:28,310 --> 01:12:29,778 AND ARE OPERATING. I'D HAVE TO 2205 01:12:29,778 --> 01:12:31,146 GO AND LOOK AT THE AWARD LIST 2206 01:12:31,146 --> 01:12:34,216 BECAUSE I CANNOT RECALL. BUT IN 2207 01:12:34,216 --> 01:12:35,718 2026, IT WILL BE A LITTLE 2208 01:12:35,718 --> 01:12:38,053 DIFFERENT. WE ARE MAINTAINING 2209 01:12:38,053 --> 01:12:40,789 THIS PRIORITY FOR COMMUNITY 2210 01:12:40,789 --> 01:12:42,891 BASED PROJECTS. IT IS A 2211 01:12:42,891 --> 01:12:44,626 PRIORITY, LONG STANDING FOR THE 2212 01:12:44,626 --> 01:12:47,463 OFFICE OF HOUSING, TO INVEST IN 2213 01:12:47,463 --> 01:12:48,097 COMMUNITY AND ALLOW AND ENABLE 2214 01:12:48,097 --> 01:12:51,934 AND FACILITATE PARTNERSHIPS FOR 2215 01:12:51,934 --> 01:12:52,468 NEW ORGANIZATIONS AND NEW 2216 01:12:52,468 --> 01:12:55,871 ENTRANTS INTO THE SECTOR TO 2217 01:12:55,871 --> 01:12:56,405 BUILD AFFORDABLE HOUSING 2218 01:12:56,405 --> 01:12:59,208 PROJECTS IN THE WAY THAT THEY 2219 01:12:59,208 --> 01:13:01,744 SEE FIT FOR THEIR COMMUNITIES. 2220 01:13:01,744 --> 01:13:03,712 IN THIS CURRENT TIME THAT WE'RE 2221 01:13:03,712 --> 01:13:06,648 IN, IT'S VERY DIFFICULT FOR 2222 01:13:06,648 --> 01:13:09,017 EVEN MAINSTREAM PROVIDERS TO 2223 01:13:09,017 --> 01:13:12,488 SECURE INVESTMENT BECAUSE OF HOW 2224 01:13:12,488 --> 01:13:13,922 CHALLENGING THE MARKET IS RIGHT 2225 01:13:13,922 --> 01:13:17,926 NOW, AND HOW DIFFICULT IT IS TO 2226 01:13:17,926 --> 01:13:20,496 OPERATE HOUSING IN OUR CITY AND 2227 01:13:20,496 --> 01:13:22,831 MANY OTHERS ACROSS THE COUNTRY. 2228 01:13:22,831 --> 01:13:25,033 SO WE WILL BE MAINTAINING A 2229 01:13:25,033 --> 01:13:26,802 PRIORITY FOR COMMUNITY BASED 2230 01:13:26,802 --> 01:13:28,804 ORGANIZATIONS IN THESE PROJECTS 2231 01:13:28,804 --> 01:13:30,939 AS WE ARE CONSIDERING OUR 2232 01:13:30,939 --> 01:13:32,841 INVESTMENTS, HOWEVER, WE WILL 2233 01:13:32,841 --> 01:13:35,043 NOT BE ESTABLISHING A FLOOR OF 2234 01:13:35,043 --> 01:13:37,312 INVESTMENT. WE'RE HOPING TO 2235 01:13:37,312 --> 01:13:39,081 MAINTAIN FLEXIBILITY AS WE BRING 2236 01:13:39,081 --> 01:13:41,383 OUR RESOURCES INTO PROJECTS SUCH 2237 01:13:41,383 --> 01:13:43,118 THAT WE CAN PLACE DOLLARS INTO 2238 01:13:43,118 --> 01:13:45,154 THE MOST READY AND FEASIBLE 2239 01:13:45,154 --> 01:13:46,088 PROJECTS IN THE TIME THAT WE 2240 01:13:46,088 --> 01:13:48,357 HAVE RIGHT NOW, AS WELL AS 2241 01:13:48,357 --> 01:13:50,459 RESPONDING TO SOME OF THESE 2242 01:13:50,459 --> 01:13:51,894 EMERGENT NEEDS THAT ARE IN THE 2243 01:13:51,894 --> 01:13:53,695 OPERATING SIDE OF THE SECTOR, 2244 01:13:53,695 --> 01:13:57,866 AND JUST MAINTAINING FLEXIBILITY 2245 01:13:57,866 --> 01:13:58,500 THERE. BUT STEADFASTLY HOLDING 2246 01:13:58,500 --> 01:14:00,135 TO THE COMMITMENT TO EQUITY AS 2247 01:14:00,135 --> 01:14:02,371 MUCH AS POSSIBLE. 2248 01:14:02,371 --> 01:14:03,839 -- THANK YOU FOR THAT ANSWER, 2249 01:14:03,839 --> 01:14:05,374 DIRECTOR LARSON, YOU KIND OF GOT 2250 01:14:05,374 --> 01:14:07,276 INTO ANSWERING THE NEXT PART OF 2251 01:14:07,276 --> 01:14:09,745 MY QUESTION, WHICH WAS 2252 01:14:09,745 --> 01:14:10,312 UNDERSTANDING THAT FOR THIS 2253 01:14:10,312 --> 01:14:11,947 PROPOSED BUDGET, THERE'S NO 2254 01:14:11,947 --> 01:14:13,982 LINE ITEM SET FOR THE COMMUNITY 2255 01:14:13,982 --> 01:14:14,950 SELF-DETERMINATION FUND. AND SO 2256 01:14:14,950 --> 01:14:16,985 YOU SPOKE TO A LITTLE BIT ABOUT 2257 01:14:16,985 --> 01:14:19,688 HOW THE INTENT AND THE WORK 2258 01:14:19,688 --> 01:14:21,690 BEHIND USUALLY THE COMMUNITY 2259 01:14:21,690 --> 01:14:22,291 SELF-DETERMINATION FUND WILL 2260 01:14:22,291 --> 01:14:24,460 CONTINUE FORWARD, BUT IT'S NOT A 2261 01:14:24,460 --> 01:14:25,260 SPECIFIC SET LINE ITEM. I'M 2262 01:14:25,260 --> 01:14:26,995 WONDERING IF YOU CAN JUST EXPAND 2263 01:14:26,995 --> 01:14:28,797 OR FILL IN ANY ADDITIONAL DETAIL 2264 01:14:28,797 --> 01:14:32,901 AS TO THE RATIONALE, MORE SO 2265 01:14:32,901 --> 01:14:33,368 BEHIND THAT DECISION. 2266 01:14:33,368 --> 01:14:34,970 -- THE PRIMARY GOAL OF THE 2267 01:14:34,970 --> 01:14:37,372 COMMUNITY SELF-DETERMINATION 2268 01:14:37,372 --> 01:14:39,708 FUND WAS TO SUPPORT NEW ENTRANTS 2269 01:14:39,708 --> 01:14:42,110 INTO THE SECTOR TO DEVELOP 2270 01:14:42,110 --> 01:14:45,047 PROJECTS ON THEIR OWN WITHOUT A 2271 01:14:45,047 --> 01:14:47,749 PARTNER. ALL BY THEMSELVES. 2272 01:14:47,749 --> 01:14:50,752 IT'S A VERY IMPORTANT OWNERSHIP 2273 01:14:50,752 --> 01:14:53,922 POSITION TO BE IN, TO HOLD THAT 2274 01:14:53,922 --> 01:14:56,558 RESPONSIBILITY AND TO CARRY THAT 2275 01:14:56,558 --> 01:14:59,461 PROJECT ALONE. IT'S BOTH A HEAVY 2276 01:14:59,461 --> 01:15:02,764 RESPONSIBILITY AND A PRIVILEGE. 2277 01:15:02,764 --> 01:15:03,632 UNFORTUNATELY, IN THE TIMES THAT 2278 01:15:03,632 --> 01:15:06,969 WE ARE IN, BECAUSE OF 2279 01:15:06,969 --> 01:15:09,738 INCREASINGLY STRICT INVESTOR 2280 01:15:09,738 --> 01:15:11,673 REQUIREMENTS AND SCREENING, IT 2281 01:15:11,673 --> 01:15:15,477 WOULD BE HIGHLY UNLIKELY FOR A 2282 01:15:15,477 --> 01:15:18,347 PROJECT WITH A NEW COMMUNITY 2283 01:15:18,347 --> 01:15:21,350 BASED ORGANIZATION TO ACHIEVE 2284 01:15:21,350 --> 01:15:23,085 THE ENTIRE CAPITAL STACK 2285 01:15:23,085 --> 01:15:25,354 NECESSARY TO MOVE A PROJECT 2286 01:15:25,354 --> 01:15:28,190 FORWARD. IF A NEW PROJECT WAS 2287 01:15:28,190 --> 01:15:29,925 COMING FORWARD THAT PROPOSED A 2288 01:15:29,925 --> 01:15:31,360 DIFFERENT TYPE OF CAPITAL STACK 2289 01:15:31,360 --> 01:15:33,228 THAT DID NOT RELY ON PRIVATE 2290 01:15:33,228 --> 01:15:35,364 DEBT EQUITY TAX CREDITS, THAT 2291 01:15:35,364 --> 01:15:39,668 WOULD BE A DIFFERENT TYPE OF 2292 01:15:39,668 --> 01:15:41,970 CONCEPT. BUT UNDER OUR CURRENT 2293 01:15:41,970 --> 01:15:43,805 TYPICAL CAPITAL STACK OF 2294 01:15:43,805 --> 01:15:45,173 INVESTMENTS, IT WOULD BE VERY, 2295 01:15:45,173 --> 01:15:47,576 VERY DIFFICULT FOR A NEW 2296 01:15:47,576 --> 01:15:49,444 ORGANIZATION WITHOUT A PARTNER 2297 01:15:49,444 --> 01:15:50,812 TO BRING FORWARD A PROJECT IN 2298 01:15:50,812 --> 01:15:54,983 THIS TIME. WE ARE ALWAYS TALKING 2299 01:15:54,983 --> 01:15:56,919 WITH NEW ENTRANTS ABOUT FINDING 2300 01:15:56,919 --> 01:15:57,619 WAYS TO SECURE A PARTNER THAT'S 2301 01:15:57,619 --> 01:16:00,255 NOT ALWAYS THE MOST DESIRABLE 2302 01:16:00,255 --> 01:16:03,425 OUTCOME FOR EVERY COMMUNITY 2303 01:16:03,425 --> 01:16:06,428 BASED ORGANIZATION AND 2304 01:16:06,428 --> 01:16:07,596 DEVELOPMENT PROJECT, AND 2305 01:16:07,596 --> 01:16:08,597 UNFORTUNATELY, THAT IS SORT OF 2306 01:16:08,597 --> 01:16:10,132 THE TIME THAT WE'RE IN RIGHT 2307 01:16:10,132 --> 01:16:12,200 NOW. NOT TO SAY THAT WE ARE 2308 01:16:12,200 --> 01:16:15,337 CLOSING DOWN THE THE COMMUNITY 2309 01:16:15,337 --> 01:16:16,805 SELF-DETERMINATION FUND. THAT 2310 01:16:16,805 --> 01:16:18,173 PROGRAM WILL BE HELD WHOLE IN 2311 01:16:18,173 --> 01:16:20,976 OUR HOUSING FUNDING POLICIES. WE 2312 01:16:20,976 --> 01:16:22,945 WILL HOPEFULLY COME BACK TO THAT 2313 01:16:22,945 --> 01:16:26,148 IN A TIME OF GREATER RESOURCES. 2314 01:16:26,148 --> 01:16:27,115 PERHAPS WHEN SOME OF THESE 2315 01:16:27,115 --> 01:16:29,318 FEDERAL FUNDING THREATS HAVE 2316 01:16:29,318 --> 01:16:30,686 PEELED AWAY AND WE CAN RELAX ON 2317 01:16:30,686 --> 01:16:36,425 AT LEAST ONE FRONT OF THE MANY 2318 01:16:36,425 --> 01:16:37,092 THAT WE'VE DISCUSSED TODAY. BUT 2319 01:16:37,092 --> 01:16:38,093 IN THIS TIME THAT WE'RE IN, WE 2320 01:16:38,093 --> 01:16:38,694 FEEL IT'S REALLY IMPORTANT. 2321 01:16:38,694 --> 01:16:40,963 AGAIN, JUST REALLY FOCUSING ON 2322 01:16:40,963 --> 01:16:42,664 RESPONSIBLE INVESTMENT PRACTICES 2323 01:16:42,664 --> 01:16:44,533 AND MAKING SURE THAT WE ARE 2324 01:16:44,533 --> 01:16:46,368 SUPPORTING ORGANIZATIONS TO BE 2325 01:16:46,368 --> 01:16:49,271 SUCCESSFUL AND PROJECTS TO BE 2326 01:16:49,271 --> 01:16:49,738 SUCCESSFUL LONG TERM. 2327 01:16:49,738 --> 01:16:50,973 -- THANK YOU FOR UNPACKING THAT. 2328 01:16:50,973 --> 01:16:52,741 DIRECTOR LARSON, AND I 2329 01:16:52,741 --> 01:16:55,143 APPRECIATE JUST THE 2330 01:16:55,143 --> 01:16:55,610 ACKNOWLEDGMENT OF THE 2331 01:16:55,610 --> 01:16:56,411 CIRCUMSTANCES WE FIND OURSELVES 2332 01:16:56,411 --> 01:16:57,746 IN. I'M HEARING THAT THERE'S 2333 01:16:57,746 --> 01:17:00,315 BEEN A CHANGE IN THE LENDING 2334 01:17:00,315 --> 01:17:01,783 MARKET AND APPROACHES. I THINK 2335 01:17:01,783 --> 01:17:04,152 WE, AS COUNCIL HAVE SHARED A 2336 01:17:04,152 --> 01:17:05,487 PRIORITY. IF WE WANT TO BE 2337 01:17:05,487 --> 01:17:07,356 SUPPORTING COMMUNITY AND BEING 2338 01:17:07,356 --> 01:17:09,358 ABLE TO DETERMINE AND SUPPORT 2339 01:17:09,358 --> 01:17:10,325 MORE WEALTH BUILDING OPPORTUNITY 2340 01:17:10,325 --> 01:17:11,893 AND BEING ABLE TO DEVELOP THOSE 2341 01:17:11,893 --> 01:17:14,229 ASSETS. AND SO WHILE IT'S 2342 01:17:14,229 --> 01:17:16,264 DISAPPOINTING IN MANY WAYS TO 2343 01:17:16,264 --> 01:17:16,898 FIND THE CIRCUMSTANCES THAT WE 2344 01:17:16,898 --> 01:17:18,033 ARE IN AND THE CHANGES, 2345 01:17:18,033 --> 01:17:18,734 PARTICULARLY AGAIN, IN THE 2346 01:17:18,734 --> 01:17:21,503 LENDING MARKET, I'LL JUST STATE 2347 01:17:21,503 --> 01:17:22,404 A PRIORITY IN THE FUTURE, BEING 2348 01:17:22,404 --> 01:17:24,272 ABLE TO FIND MORE WAYS TO BETTER 2349 01:17:24,272 --> 01:17:27,509 RESOURCE AND SUPPORT THESE 2350 01:17:27,509 --> 01:17:29,311 OPPORTUNITIES FOR COMMUNITY LED 2351 01:17:29,311 --> 01:17:30,345 DEVELOPMENT, BUT SHARED. THAT 2352 01:17:30,345 --> 01:17:30,912 CONCLUDES MY QUESTIONS FOR 2353 01:17:30,912 --> 01:17:32,347 TODAY. I WANT TO THANK AGAIN THE 2354 01:17:32,347 --> 01:17:34,316 OFFICE OF HOUSING FOR YOUR 2355 01:17:34,316 --> 01:17:36,084 CONTINUED WORK IN DEVELOPING 2356 01:17:36,084 --> 01:17:36,618 AFFORDABLE HOUSING IN OUR 2357 01:17:36,618 --> 01:17:37,552 COMMUNITY. THANK YOU. 2358 01:17:37,552 --> 01:17:38,587 -- THANK YOU, COUNCILMEMBER 2359 01:17:38,587 --> 01:17:39,454 RINCK. ANYTHING ELSE FROM THE 2360 01:17:39,454 --> 01:17:40,856 COMMITTEE TABLE RIGHT NOW? NO. 2361 01:17:40,856 --> 01:17:43,191 SEEING NONE. COUNCILMEMBER SAKA 2362 01:17:43,191 --> 01:17:43,725 FOLLOWED BY COUNCILMEMBER 2363 01:17:43,725 --> 01:17:43,959 KETTLE. 2364 01:17:43,959 --> 01:17:44,993 -- THANK YOU, CHAIR, AND THANK 2365 01:17:44,993 --> 01:17:46,061 YOU, DIRECTOR LARSON, YOUR TEAM 2366 01:17:46,061 --> 01:17:50,432 FOR BEING HERE TODAY. APPRECIATE 2367 01:17:50,432 --> 01:17:52,934 THIS PRESENTATION AND 2368 01:17:52,934 --> 01:17:53,535 CONGRATULATIONS AGAIN ON YOUR 2369 01:17:53,535 --> 01:17:54,870 RECENT CONFIRMATION. EXCITED TO 2370 01:17:54,870 --> 01:17:57,572 PARTNER WITH YOU AND HAVE YOU AT 2371 01:17:57,572 --> 01:17:58,340 THE TABLE AS THE HEAD OF THE 2372 01:17:58,340 --> 01:18:00,876 TABLE, SO TO SPEAK, ON THIS 2373 01:18:00,876 --> 01:18:02,144 SIDE. AND AGAIN, APPRECIATE ALL 2374 01:18:02,144 --> 01:18:05,147 THE WORK THAT WENT INTO THIS ONE 2375 01:18:05,147 --> 01:18:08,483 QUESTION. MAYBE TWO. WE'LL SEE. 2376 01:18:08,483 --> 01:18:11,019 BUT I WANT TO TALK A LITTLE BIT 2377 01:18:11,019 --> 01:18:14,289 ABOUT WEATHERIZATION AND HOME 2378 01:18:14,289 --> 01:18:16,792 PROGRAMS WITHIN THE DEPARTMENT. 2379 01:18:16,792 --> 01:18:18,260 SO WHICH LEADS ME TO ONE OF MY 2380 01:18:18,260 --> 01:18:20,829 HIGHEST PRIORITIES FOR YOUR 2381 01:18:20,829 --> 01:18:23,298 DEPARTMENT IS TO UNLOCKING NEW 2382 01:18:23,298 --> 01:18:24,766 HOMEOWNERSHIP OPPORTUNITIES FOR 2383 01:18:24,766 --> 01:18:27,903 EVERYONE PRIORITIZING FOLKS WHO 2384 01:18:27,903 --> 01:18:29,471 HAVE HISTORICALLY BEEN LEFT OUT 2385 01:18:29,471 --> 01:18:32,607 OF THE PROCESS. WE'RE TALKING 2386 01:18:32,607 --> 01:18:33,075 ABOUT BLACK AND BROWN 2387 01:18:33,075 --> 01:18:34,943 HOMEOWNERS, YOU KNOW, OTHER 2388 01:18:34,943 --> 01:18:37,846 PEOPLE FROM SOCIOECONOMIC 2389 01:18:37,846 --> 01:18:39,448 DISADVANTAGED COMMUNITIES WHO 2390 01:18:39,448 --> 01:18:40,082 WANT TO HAVE THEIR SLICE OF THE 2391 01:18:40,082 --> 01:18:41,950 AMERICAN DREAM, THE WHITE PICKET 2392 01:18:41,950 --> 01:18:43,185 FENCE, IF YOU WILL, DOESN'T NEED 2393 01:18:43,185 --> 01:18:48,223 TO BE A WHITE PICKET FENCE. BUT 2394 01:18:48,223 --> 01:18:48,757 MY POINT IS UNLOCKING NEW 2395 01:18:48,757 --> 01:18:50,525 HOMEOWNERSHIP OPPORTUNITIES FOR 2396 01:18:50,525 --> 01:18:52,527 ALL AND HAVING VIBRANT AND 2397 01:18:52,527 --> 01:18:55,030 ROBUST PROGRAMING TO DO EXACTLY 2398 01:18:55,030 --> 01:18:56,665 THAT. AND AGAIN, THAT'S ONE OF 2399 01:18:56,665 --> 01:18:58,500 MY HIGHEST PRIORITIES FOR YOUR 2400 01:18:58,500 --> 01:19:02,003 DEPARTMENT. NOT EVERYONE WANTS 2401 01:19:02,003 --> 01:19:04,106 TO, YOU KNOW, PARTICIPATE IN 2402 01:19:04,106 --> 01:19:05,040 HOMEOWNERSHIP, WHICH IS TOTALLY 2403 01:19:05,040 --> 01:19:07,242 FINE. BUT FOR THOSE THAT DO, WE 2404 01:19:07,242 --> 01:19:10,145 NEED TO HAVE GREAT PROGRAMING 2405 01:19:10,145 --> 01:19:11,279 OPTIONS BECAUSE THAT, AGAIN, 2406 01:19:11,279 --> 01:19:12,948 THAT'S, THAT'S THE AMERICAN 2407 01:19:12,948 --> 01:19:14,816 DREAM AT THE END OF THE DAY. SO 2408 01:19:14,816 --> 01:19:19,020 WHETHER SHIP AND HOMEOWNERSHIP 2409 01:19:19,020 --> 01:19:21,356 PROGRAMS SHOW MEASURABLE 2410 01:19:21,356 --> 01:19:24,426 DECREASES FROM 2026 FUNDING 2411 01:19:24,426 --> 01:19:25,927 LEVELS AND SPECIFICALLY, IF YOU 2412 01:19:25,927 --> 01:19:28,196 LOOK AT PAGE TWO, 40 OF THE 2413 01:19:28,196 --> 01:19:29,865 BUDGET DOCS, THAT'S ONE 2414 01:19:29,865 --> 01:19:30,899 ILLUSTRATIVE EXAMPLE. THERE ARE 2415 01:19:30,899 --> 01:19:32,834 OTHERS IN THE IN THE BUDGET 2416 01:19:32,834 --> 01:19:34,202 MATERIALS. BUT THAT'S THAT'S 2417 01:19:34,202 --> 01:19:36,705 ONE SORT OF GOOD GRAPHICAL 2418 01:19:36,705 --> 01:19:39,875 DEPICTION OF THAT PROPOSITION. 2419 01:19:39,875 --> 01:19:42,010 HOW WILL THESE REDUCTIONS AFFECT 2420 01:19:42,010 --> 01:19:44,646 LOW INCOME HOMEOWNERS AND 2421 01:19:44,646 --> 01:19:47,215 RENTERS IN THE NEAR TERM, 2422 01:19:47,215 --> 01:19:50,118 PARTICULARLY THOSE RELYING ON 2423 01:19:50,118 --> 01:19:50,652 CRITICAL REPAIRS, ENERGY 2424 01:19:50,652 --> 01:19:52,787 EFFICIENCY UPGRADES, OR FIRST 2425 01:19:52,787 --> 01:19:57,659 TIME HOME BUYER ASSISTANCE? AND 2426 01:19:57,659 --> 01:20:00,695 THEN HOW IS PRIORITIZING WHICH 2427 01:20:00,695 --> 01:20:01,296 RESIDENTS SERVING INITIATIVES 2428 01:20:01,296 --> 01:20:03,665 REMAIN FULLY FUNDED VERSUS 2429 01:20:03,665 --> 01:20:05,867 SCALED BACK 2430 01:20:05,867 --> 01:20:06,301 -- COMMITTEE TABLE? 2431 01:20:06,301 --> 01:20:07,502 -- I CAN START WITH THE 2432 01:20:07,502 --> 01:20:09,237 TECHNICAL SIDE OF THAT. FOR THE 2433 01:20:09,237 --> 01:20:11,673 HOME OWNERSHIP DECREASE THAT YOU 2434 01:20:11,673 --> 01:20:14,476 SEE. WHAT YOU SEE IS THAT IN 2435 01:20:14,476 --> 01:20:17,445 2026, THERE WAS A ONE TIME 2436 01:20:17,445 --> 01:20:20,182 COUNCIL AD, EXCUSE ME, OF $3.4 2437 01:20:20,182 --> 01:20:22,317 MILLION, AND THAT WAS DONE IN 2438 01:20:22,317 --> 01:20:26,021 ORDER TO COVER A PROPOSED CUT 2439 01:20:26,021 --> 01:20:27,923 FOR BOTH 25 AND 26, 1.7 MILLION 2440 01:20:27,923 --> 01:20:32,060 IN EACH YEAR, SO THAT COUNCIL AD 2441 01:20:32,060 --> 01:20:34,262 IN THE 26 BUDGET WAS A ONE TIME 2442 01:20:34,262 --> 01:20:36,832 RESTORATION. SO WHAT YOU SEE IS 2443 01:20:36,832 --> 01:20:37,465 THE DIFFERENCE BETWEEN WHEN WE 2444 01:20:37,465 --> 01:20:39,434 REMOVE THAT OUT OF THE BASELINE, 2445 01:20:39,434 --> 01:20:41,636 GOING BACK TO THE BASELINE 2446 01:20:41,636 --> 01:20:44,706 LEVELS THAT EXISTED BEFORE THAT 2447 01:20:44,706 --> 01:20:45,674 COUNCIL AD AND WEATHERIZATION, 2448 01:20:45,674 --> 01:20:47,342 IT'S A LITTLE BIT OF A 2449 01:20:47,342 --> 01:20:50,011 DIFFERENT STORY. WEATHERIZATION 2450 01:20:50,011 --> 01:20:51,346 IS FULLY FUNDED BY IT HAS A 2451 01:20:51,346 --> 01:20:53,849 SMALL AMOUNT, 1.7 MILLION OF 2452 01:20:53,849 --> 01:20:55,450 JUMPSTART PAYROLL TAX. OTHER 2453 01:20:55,450 --> 01:20:56,751 THAN THAT, IT IS FULLY FUNDED BY 2454 01:20:56,751 --> 01:20:59,921 EITHER SEATTLE CITY LIGHT OR BY 2455 01:20:59,921 --> 01:21:01,790 FEDERAL, STATE, LOCAL GRANTS. 2456 01:21:01,790 --> 01:21:05,493 THOSE GRANTS ARE ALL ON TIMING, 2457 01:21:05,493 --> 01:21:06,027 ON TIMELINES THAT DON'T 2458 01:21:06,027 --> 01:21:10,465 CORRESPOND WITH OUR FISCAL YEAR. 2459 01:21:10,465 --> 01:21:11,499 WE'VE GOT SOME OCTOBER TO 2460 01:21:11,499 --> 01:21:13,134 SEPTEMBER. WE'VE GOT SOME JULY 2461 01:21:13,134 --> 01:21:16,805 TO JUNE. SO YOU DON'T WHAT YOU 2462 01:21:16,805 --> 01:21:18,607 SEE IN THE BUDGET, THOUGH THERE 2463 01:21:18,607 --> 01:21:19,808 MAY BE A DIFFERENCE FROM YEAR TO 2464 01:21:19,808 --> 01:21:21,943 YEAR, FROM CALENDAR YEAR TO 2465 01:21:21,943 --> 01:21:23,078 CALENDAR YEAR, WE'RE NOT 2466 01:21:23,078 --> 01:21:25,313 ANTICIPATING ANY REDUCTION IN 2467 01:21:25,313 --> 01:21:27,916 DELIVERY OF SERVICES FOR 2468 01:21:27,916 --> 01:21:30,151 WEATHERIZATION WORK, AND WE'RE 2469 01:21:30,151 --> 01:21:30,785 NOT ANTICIPATING ANY MEANINGFUL 2470 01:21:30,785 --> 01:21:32,721 CHANGE IN THE GRANTS RECEIVED 2471 01:21:32,721 --> 01:21:35,090 FOR WEATHERIZATION. 2472 01:21:35,090 --> 01:21:36,558 -- AND THAT'S ON THE 2473 01:21:36,558 --> 01:21:39,160 WEATHERIZATION SIDE. AND HOW 2474 01:21:39,160 --> 01:21:39,661 ABOUT THE HOMEOWNERSHIP 2475 01:21:39,661 --> 01:21:40,629 PROGRAMS? 2476 01:21:40,629 --> 01:21:42,430 -- YES. THE HOMEOWNERSHIP WAS 2477 01:21:42,430 --> 01:21:43,899 THE FIRST PIECE OF THE COUNCIL 2478 01:21:43,899 --> 01:21:45,400 RESTORATION OF THE THREE POINT. 2479 01:21:45,400 --> 01:21:47,602 -- SO I HEAR YOU SAYING IT'S NOT 2480 01:21:47,602 --> 01:21:48,236 TECHNICALLY A CUT BECAUSE IT WAS 2481 01:21:48,236 --> 01:21:50,405 A ONE TIME AD. OKAY. YEAH. 2482 01:21:50,405 --> 01:21:51,539 -- I CAN ALSO. 2483 01:21:51,539 --> 01:21:55,110 -- SHARE AND ADD A LITTLE BIT 2484 01:21:55,110 --> 01:21:55,710 MORE HERE. COUNCILMEMBER SAKA 2485 01:21:55,710 --> 01:21:57,112 HOMEOWNERSHIP IS A VERY HIGH 2486 01:21:57,112 --> 01:21:58,413 VALUE IN OUR DEPARTMENT AND OUR 2487 01:21:58,413 --> 01:22:01,750 COMMUNITY. AND WITH MANY OF OUR 2488 01:22:01,750 --> 01:22:03,184 COUNCIL COLLEAGUES, I KNOW WE 2489 01:22:03,184 --> 01:22:04,719 ARE REALLY EXCITED. THIS YEAR WE 2490 01:22:04,719 --> 01:22:06,221 MOVED FORWARD THE HARVEY 2491 01:22:06,221 --> 01:22:08,890 PROJECT. SO THAT'S IN THE 2492 01:22:08,890 --> 01:22:09,491 CENTRAL DISTRICT, A SITE THAT 2493 01:22:09,491 --> 01:22:11,092 WAS IN OUR PORTFOLIO THAT WILL 2494 01:22:11,092 --> 01:22:12,427 BE MOVING FORWARD AS A 2495 01:22:12,427 --> 01:22:13,862 HOMEOWNERSHIP INVESTMENT OVER 2496 01:22:13,862 --> 01:22:15,497 THE NEXT SEVERAL YEARS. WE 2497 01:22:15,497 --> 01:22:17,866 BROUGHT FORWARD THE MONTLAKE 2498 01:22:17,866 --> 01:22:21,269 PROJECT ALSO THIS YEAR. THAT WAS 2499 01:22:21,269 --> 01:22:21,903 AN INCREDIBLE PARTNERSHIP WITH 2500 01:22:21,903 --> 01:22:24,205 OUR STATE COLLEAGUES AND THE 2501 01:22:24,205 --> 01:22:26,975 CITY COUNCIL AND THE OFFICE OF 2502 01:22:26,975 --> 01:22:29,244 HOUSING MAYOR'S OFFICE TO MOVE 2503 01:22:29,244 --> 01:22:30,545 FORWARD A PURCHASE AND SALE 2504 01:22:30,545 --> 01:22:32,347 WHERE THE STATE APPROPRIATED 2505 01:22:32,347 --> 01:22:33,581 CAPITAL FUNDS TO MOVE THROUGH 2506 01:22:33,581 --> 01:22:34,849 THE DEPARTMENT OF COMMERCE IN 2507 01:22:34,849 --> 01:22:37,452 ORDER FOR O TO PURCHASE THE SITE 2508 01:22:37,452 --> 01:22:39,187 FROM THE WASHINGTON DEPARTMENT 2509 01:22:39,187 --> 01:22:41,823 OF TRANSIT, TRANSPORTATION. WE 2510 01:22:41,823 --> 01:22:43,258 HAVE DONE EVERYTHING WE CAN TO 2511 01:22:43,258 --> 01:22:45,760 LEVERAGE STATE DOLLARS IN 2512 01:22:45,760 --> 01:22:46,394 HOMEOWNERSHIP PROJECTS. I'VE 2513 01:22:46,394 --> 01:22:48,563 SEEN THREE GRANT AGREEMENTS COME 2514 01:22:48,563 --> 01:22:49,531 ACROSS MY DESK IN THE LAST TWO 2515 01:22:49,531 --> 01:22:51,399 WEEKS FOR CHIP FUNDS FROM THE 2516 01:22:51,399 --> 01:22:53,301 STATE. THOSE ARE INFRASTRUCTURE 2517 01:22:53,301 --> 01:22:54,836 FUNDS THAT HELP TO LEVERAGE. WE 2518 01:22:54,836 --> 01:22:57,138 LEVERAGE THOSE TO BRING OUR 2519 01:22:57,138 --> 01:22:58,406 HOMEOWNERSHIP PROJECTS FORWARD. 2520 01:22:58,406 --> 01:23:02,043 SO WE ARE TILTING, AT LEAST LAST 2521 01:23:02,043 --> 01:23:04,112 YEAR, MORE OF OUR CHIP 2522 01:23:04,112 --> 01:23:06,114 INVESTMENTS THAT WE CAN APPLY 2523 01:23:06,114 --> 01:23:08,316 FOR FROM THE CITY SIDE ARE GOING 2524 01:23:08,316 --> 01:23:09,584 INTO HOMEOWNERSHIP PROJECTS THAN 2525 01:23:09,584 --> 01:23:10,652 INTO RENTAL PROJECTS, SO THAT WE 2526 01:23:10,652 --> 01:23:13,021 CAN REALLY BRING THOSE PROJECTS 2527 01:23:13,021 --> 01:23:14,422 FORWARD. IN PARTNERSHIP WITH THE 2528 01:23:14,422 --> 01:23:16,491 OFFICE OF INTERGOVERNMENTAL 2529 01:23:16,491 --> 01:23:19,194 RELATIONS, WE ARE ADVOCATING 2530 01:23:19,194 --> 01:23:20,962 THIS YEAR AND LAST YEAR FOR 2531 01:23:20,962 --> 01:23:23,098 CAPITAL EARMARKS, FOR 2532 01:23:23,098 --> 01:23:23,598 HOMEOWNERSHIP PROJECTS. 2533 01:23:23,598 --> 01:23:24,399 SPECIFICALLY, THIS YEAR, WE'LL 2534 01:23:24,399 --> 01:23:26,401 BE FOCUSING ON MONTLAKE. LAST 2535 01:23:26,401 --> 01:23:30,038 YEAR, WE FOCUSED ON CLOVERDALE, 2536 01:23:30,038 --> 01:23:30,638 SO PROJECTS ARE CONTINUING TO 2537 01:23:30,638 --> 01:23:33,441 MOVE FORWARD AND SUPPORTED WITH 2538 01:23:33,441 --> 01:23:35,010 OTHER RESOURCES WHEREVER 2539 01:23:35,010 --> 01:23:36,311 POSSIBLE. WHEN I WAS I MENTIONED 2540 01:23:36,311 --> 01:23:39,781 I WAS DOWN VISITING RIVERBEND 2541 01:23:39,781 --> 01:23:42,183 COMMUNITY A COUPLE OF WEEKS AGO 2542 01:23:42,183 --> 01:23:44,386 WITH HABITAT'S LEADERSHIP TEAM, 2543 01:23:44,386 --> 01:23:46,554 AND THEY TOLD ME THAT THEY HAVE 2544 01:23:46,554 --> 01:23:48,390 THE LARGEST PIPELINE EVER 2545 01:23:48,390 --> 01:23:49,791 CURRENTLY UNDERWAY, LARGELY DUE 2546 01:23:49,791 --> 01:23:51,326 TO THE INVESTMENTS THAT THEY 2547 01:23:51,326 --> 01:23:52,994 RECEIVE FROM THE SEATTLE OFFICE 2548 01:23:52,994 --> 01:23:54,729 OF HOUSING. WE ARE CONFIDENT IN 2549 01:23:54,729 --> 01:23:55,697 THE PIPELINE THAT WE HAVE RIGHT 2550 01:23:55,697 --> 01:24:00,602 NOW. PROVIDERS ARE VERY BUSY AND 2551 01:24:00,602 --> 01:24:03,772 WE ARE SOON TO ANNOUNCE OUR FALL 2552 01:24:03,772 --> 01:24:05,073 HOMEOWNERSHIP AWARDS. THEY WILL 2553 01:24:05,073 --> 01:24:06,875 BE COMING FORWARD SHORTLY. WE 2554 01:24:06,875 --> 01:24:08,443 HAVE A LOT OF UNITS UNDERWAY, 2555 01:24:08,443 --> 01:24:09,811 AND THERE'S A LOT OF GOOD 2556 01:24:09,811 --> 01:24:11,012 PROJECTS COMING, COMING ONLINE 2557 01:24:11,012 --> 01:24:12,914 IN THE NEAR FUTURE. 2558 01:24:12,914 --> 01:24:14,549 -- AND JUST TO ADD TO THAT, THE 2559 01:24:14,549 --> 01:24:16,051 CHIP THAT YOU WILL BE SEEING IN 2560 01:24:16,051 --> 01:24:18,219 A GRANT ACCEPTANCE ORDINANCE, I 2561 01:24:18,219 --> 01:24:20,989 BELIEVE, BEFORE THE END OF THIS 2562 01:24:20,989 --> 01:24:22,624 YEAR IS 4.5 MILLION FOR 2563 01:24:22,624 --> 01:24:22,991 HOMEOWNERSHIP. 2564 01:24:22,991 --> 01:24:24,025 -- AND DIRECTOR, DO YOU HAVE 2565 01:24:24,025 --> 01:24:24,993 SOMETHING TO ADD? NOTHING. BACK 2566 01:24:24,993 --> 01:24:26,494 TO YOU, COUNCILMEMBER SAKA. 2567 01:24:26,494 --> 01:24:27,829 -- THANK YOU, CHAIR. THANK YOU 2568 01:24:27,829 --> 01:24:31,933 FOR THE INITIAL CLARITY THERE. 2569 01:24:31,933 --> 01:24:34,469 MY SECOND QUESTION GOOD. 2570 01:24:34,469 --> 01:24:35,603 COUNCILMEMBER SAKA IS ONLY 2571 01:24:35,603 --> 01:24:37,705 ASKING TWO QUESTIONS. GREAT. MY 2572 01:24:37,705 --> 01:24:43,378 SECOND QUESTION IS PERTAINS TO 2573 01:24:43,378 --> 01:24:44,646 THE FEDERAL OPPORTUNITY ZONE 2.0 2574 01:24:44,646 --> 01:24:46,081 PROGRAM. AND I DON'T KNOW IF 2575 01:24:46,081 --> 01:24:48,082 THIS IS BEST. THIS QUESTION IS, 2576 01:24:48,082 --> 01:24:53,655 IS, IS BEST FOR YOU OR OPCD. AND 2577 01:24:53,655 --> 01:24:54,322 I SEE OPCD DIRECTOR IN THE BACK. 2578 01:24:54,322 --> 01:24:57,826 SO MAYBE, MAYBE, YOU KNOW, THIS 2579 01:24:57,826 --> 01:24:59,227 IS FAIR WARNING FOR SIMILAR 2580 01:24:59,227 --> 01:24:59,828 QUESTION LINE OF QUESTIONING 2581 01:24:59,828 --> 01:25:02,163 MIGHT COME UP, BUT SO THE 2582 01:25:02,163 --> 01:25:05,366 FEDERAL OPPORTUNITY ZONE 2.0 2583 01:25:05,366 --> 01:25:07,469 PROGRAM IS THE LATEST FEDERAL 2584 01:25:07,469 --> 01:25:11,406 ITERATION OF COMPLEX INCENTIVE 2585 01:25:11,406 --> 01:25:14,075 PROGRAM TO INCENTIVIZE 2586 01:25:14,075 --> 01:25:17,345 DEVELOPMENT, GROWTH IN KEY AREAS 2587 01:25:17,345 --> 01:25:18,079 THAT THE FEDERAL GOVERNMENT 2588 01:25:18,079 --> 01:25:20,181 DEEMS APPROPRIATE. WELL, FEDERAL 2589 01:25:20,181 --> 01:25:23,351 AND STATE GOVERNMENT, BECAUSE 2590 01:25:23,351 --> 01:25:24,819 THE MY UNDERSTANDING IS THE 2591 01:25:24,819 --> 01:25:27,689 GOVERNOR'S OFFICE IN JULY OR 2592 01:25:27,689 --> 01:25:30,892 SOMETHING SUBMITTED BECAUSE 2593 01:25:30,892 --> 01:25:32,994 EVERYONE WANTS MANY 2594 01:25:32,994 --> 01:25:33,528 JURISDICTIONS WANT THEIR 2595 01:25:33,528 --> 01:25:34,929 SPECIFIC CENSUS TRACTS TO BE 2596 01:25:34,929 --> 01:25:36,164 LISTED. A FEDERAL OPPORTUNITY 2597 01:25:36,164 --> 01:25:37,198 ZONES. THERE'S AN INTENSE 2598 01:25:37,198 --> 01:25:40,135 AMOUNT OF LOBBYING GOING ON. AND 2599 01:25:40,135 --> 01:25:44,272 THEN ALL CULMINATED IN A. 2600 01:25:44,272 --> 01:25:45,173 BECAUSE THE GOVERNORS OF EACH 2601 01:25:45,173 --> 01:25:48,376 STATE ARE EMPOWERED TO ACTUALLY 2602 01:25:48,376 --> 01:25:51,713 SELECT A SPECIFIC OPPORTUNITY 2603 01:25:51,713 --> 01:25:53,681 ZONES WITHIN THEIR JURISDICTIONS 2604 01:25:53,681 --> 01:25:55,183 AND. AND SEPARATELY, I WILL LOVE 2605 01:25:55,183 --> 01:25:58,286 A LIST OF, OF, OF THOSE IN 2606 01:25:58,286 --> 01:26:02,690 SEATTLE, BUT IRRESPECTIVE OF THE 2607 01:26:02,690 --> 01:26:05,560 SPECIFIC ZONE SELECTED IN THE 2608 01:26:05,560 --> 01:26:09,030 CITY OF SEATTLE, HOW DO YOU 2609 01:26:09,030 --> 01:26:12,567 ANTICIPATE THOSE DESIGNATED 2610 01:26:12,567 --> 01:26:16,738 OPPORTUNITY ZONES TO IMPACT THE 2611 01:26:16,738 --> 01:26:18,172 OVERALL. HOUSING LANDSCAPE IN 2612 01:26:18,172 --> 01:26:21,743 THE CITY OF SEATTLE GOING 2613 01:26:21,743 --> 01:26:22,010 FORWARD? 2614 01:26:22,010 --> 01:26:24,279 -- THAT WAS AN EXCELLENT SUMMARY 2615 01:26:24,279 --> 01:26:24,879 OF OPPORTUNITY ZONES THAT I 2616 01:26:24,879 --> 01:26:25,947 WOULD NOT HAVE BEEN ABLE TO 2617 01:26:25,947 --> 01:26:27,749 PROVIDE MYSELF THREE YEARS AGO. 2618 01:26:27,749 --> 01:26:29,751 SO WELL DONE. ON THE COMPLEXITY 2619 01:26:29,751 --> 01:26:30,885 OF THE PROCESS THAT OUR TEAMS 2620 01:26:30,885 --> 01:26:33,888 JUST WENT THROUGH TO SUBMIT 2621 01:26:33,888 --> 01:26:35,156 PROPOSED NEW OPPORTUNITY ZONES 2622 01:26:35,156 --> 01:26:37,325 TO THE GOVERNOR'S OFFICE, OUR 2623 01:26:37,325 --> 01:26:38,993 OFFICE OF HOUSING FOLKS, OPCD 2624 01:26:38,993 --> 01:26:41,563 OPCD, WORKED REALLY CLOSELY WITH 2625 01:26:41,563 --> 01:26:43,464 OTHER COLLEAGUES IN THE CITY TO 2626 01:26:43,464 --> 01:26:45,099 GO THROUGH A REALLY INTENTIONAL 2627 01:26:45,099 --> 01:26:46,734 PROCESS, EXAMINING A LOT OF 2628 01:26:46,734 --> 01:26:50,438 DATA, TALKING TO PROVIDERS AND 2629 01:26:50,438 --> 01:26:51,506 DEVELOPERS IN THESE AREAS. YOU 2630 01:26:51,506 --> 01:26:54,976 HAD TO LOOK AT YOUR EXISTING 2631 01:26:54,976 --> 01:26:57,412 OPPORTUNITY ZONE AND MAKE AN 2632 01:26:57,412 --> 01:26:57,979 ARGUMENT FOR WHY THESE NEW 2633 01:26:57,979 --> 01:26:58,947 OPPORTUNITY ZONES WOULD BE 2634 01:26:58,947 --> 01:27:00,848 ESTABLISHED. DIRECTOR KIERAN 2635 01:27:00,848 --> 01:27:01,749 COULD SPEAK MORE TO THIS AS 2636 01:27:01,749 --> 01:27:03,851 WELL, BUT WE DID GO FORWARD 2637 01:27:03,851 --> 01:27:09,257 WITH, I BELIEVE, A ZONE IN FIRST 2638 01:27:09,257 --> 01:27:10,992 HILL ZONE NEAR CHINATOWN 2639 01:27:10,992 --> 01:27:12,760 INTERNATIONAL DISTRICT, AND THEN 2640 01:27:12,760 --> 01:27:14,963 WE WERE SUPPORTING A NORTHGATE 2641 01:27:14,963 --> 01:27:16,197 ZONE AS WELL. SEATTLE HOUSING 2642 01:27:16,197 --> 01:27:17,532 AUTHORITY ENDED UP CARRYING THAT 2643 01:27:17,532 --> 01:27:19,367 ONE FORWARD AND I BELIEVE THOSE 2644 01:27:19,367 --> 01:27:20,401 ALL MOVED FORWARD COULD BE 2645 01:27:20,401 --> 01:27:22,704 MISSING 1 OR 2 ON THE LIST. BUT 2646 01:27:22,704 --> 01:27:24,906 WE WE WENT THROUGH A REALLY 2647 01:27:24,906 --> 01:27:26,541 INTENTIONAL INTERDEPARTMENTAL 2648 01:27:26,541 --> 01:27:27,141 PROCESS TO PUT THOSE FORWARD. 2649 01:27:27,141 --> 01:27:28,309 AND WE COULD WE WERE HAPPY TO 2650 01:27:28,309 --> 01:27:29,611 SEND YOU A LIST. THESE ZONES 2651 01:27:29,611 --> 01:27:31,479 MAKE A BIG DIFFERENCE IN TERMS 2652 01:27:31,479 --> 01:27:32,080 OF THE FINANCING THAT YOU CAN 2653 01:27:32,080 --> 01:27:33,681 SECURE TO MOVE PROJECTS FORWARD. 2654 01:27:33,681 --> 01:27:36,251 IT MAKES A BIG A BIG DIFFERENCE 2655 01:27:36,251 --> 01:27:37,752 FOR THE CAPITAL STACK. SO IT'S, 2656 01:27:37,752 --> 01:27:39,420 IT'S REALLY IMPORTANT FOR KEY 2657 01:27:39,420 --> 01:27:40,722 PROJECTS THAT WE KNEW WERE IN 2658 01:27:40,722 --> 01:27:43,057 THE PIPELINE TO ACHIEVE THOSE 2659 01:27:43,057 --> 01:27:45,760 DESIGNATIONS. AND WE'RE WE'RE 2660 01:27:45,760 --> 01:27:46,527 EXCITED ABOUT THE PROGRESS SO 2661 01:27:46,527 --> 01:27:46,961 FAR. 2662 01:27:46,961 --> 01:27:50,598 -- THANK YOU. APPRECIATE THAT. 2663 01:27:50,598 --> 01:27:53,001 AND YEAH, I WAS TRACKING THAT 2664 01:27:53,001 --> 01:27:53,968 CLOSELY OVER THE LAST YEAR AND 2665 01:27:53,968 --> 01:27:55,169 KIND OF FELL OFF A LITTLE BIT 2666 01:27:55,169 --> 01:27:56,604 AND WAS LOOKING AT SOME 2667 01:27:56,604 --> 01:27:57,438 OPPORTUNITIES IN MY OWN 2668 01:27:57,438 --> 01:27:59,507 DISTRICT, AND INCLUDING IN SOUTH 2669 01:27:59,507 --> 01:28:01,476 PARK. AND, BUT THERE'S A LOT OF 2670 01:28:01,476 --> 01:28:02,110 STAKEHOLDER THAT NEEDS TO BE 2671 01:28:02,110 --> 01:28:04,379 INVOLVED. SO I DIDN'T END UP 2672 01:28:04,379 --> 01:28:05,246 ADVOCATING ON BEHALF OF THAT. 2673 01:28:05,246 --> 01:28:06,280 SOUNDS LIKE THAT WASN'T EVEN ONE 2674 01:28:06,280 --> 01:28:07,782 OF THE ONES THAT WAS SELECTED. 2675 01:28:07,782 --> 01:28:10,451 BUT IN ANY EVENT, WE CAN GET A 2676 01:28:10,451 --> 01:28:13,187 LIST OFFLINE OFF THE FINAL. THE 2677 01:28:13,187 --> 01:28:14,489 FINAL ONES. AND BUT I APPRECIATE 2678 01:28:14,489 --> 01:28:15,623 THE INITIAL CLARITY. THANK YOU. 2679 01:28:15,623 --> 01:28:16,524 THANK YOU CHAIR. 2680 01:28:16,524 --> 01:28:20,561 -- THANK YOU. COUNCILMEMBER. 2681 01:28:20,561 --> 01:28:21,129 SOCCER COUNCILMEMBER KETTLE 2682 01:28:21,129 --> 01:28:22,130 THANK YOU, CHAIR. I APOLOGIZE 2683 01:28:22,130 --> 01:28:24,399 FOR BEING LATE MISSING THE THE 2684 01:28:24,399 --> 01:28:28,036 BRIEFING MAYOR'S CHIEF OF POLICE 2685 01:28:28,036 --> 01:28:31,439 SELECTION COMMITTEE IT'S KEEPING 2686 01:28:31,439 --> 01:28:33,675 ME BUSY, SO I MISS. SOME OF 2687 01:28:33,675 --> 01:28:35,910 THESE MAY HAVE BEEN BROUGHT UP 2688 01:28:35,910 --> 01:28:36,444 DURING THE COURSE OF THE 2689 01:28:36,444 --> 01:28:39,080 BRIEFING, BUT SO WELCOME, 2690 01:28:39,080 --> 01:28:39,781 DIRECTOR LARSON, BY THE WAY, 2691 01:28:39,781 --> 01:28:42,550 MISS GREER, OBVIOUSLY DIRECTOR 2692 01:28:42,550 --> 01:28:45,620 PANUCCI AND OUR OWN MR. WHITSON 2693 01:28:45,620 --> 01:28:47,455 I SEE IN HERE, BY THE WAY, THE 2694 01:28:47,455 --> 01:28:49,157 ACCOUNTING, YOU KNOW, THE BUDGET 2695 01:28:49,157 --> 01:28:53,394 PIECE, THE FUND SWAPS AND 2696 01:28:53,394 --> 01:28:55,830 EVERYTHING ELSE CONTINUE ON THE 2697 01:28:55,830 --> 01:28:56,631 PRESERVATION PIECE. YOU KNOW, I 2698 01:28:56,631 --> 01:29:00,268 LOOK AT THIS, YOU KNOW, IN TWO 2699 01:29:00,268 --> 01:29:02,970 WAYS. ONE IS THE MAINTENANCE, 2700 01:29:02,970 --> 01:29:04,005 ONE IS THE STABILIZATION, THE 2701 01:29:04,005 --> 01:29:06,140 MAINTENANCE PIECE I BRING UP 2702 01:29:06,140 --> 01:29:09,644 BECAUSE IT HAS HUGE IMPACTS ON 2703 01:29:09,644 --> 01:29:12,113 THE COMMUNITIES. I HAVE BEEN 2704 01:29:12,113 --> 01:29:14,015 DOING PUBLIC SAFETY WALKS AND, 2705 01:29:14,015 --> 01:29:18,920 YOU KNOW, WALKING BY A HOUSING 2706 01:29:18,920 --> 01:29:21,723 PROVIDER, I WON'T NAME AND, YOU 2707 01:29:21,723 --> 01:29:24,659 KNOW, ALL ALONG THE BACKSIDE OF 2708 01:29:24,659 --> 01:29:26,594 IT IN THE ALLEY, MASSIVE RATS 2709 01:29:26,594 --> 01:29:28,129 NEST. AND THEN LOOKING DOWN THE 2710 01:29:28,129 --> 01:29:29,397 SIDE, IT CONTINUES. AND ONE 2711 01:29:29,397 --> 01:29:31,499 WONDERS IF IT'S LIKE THIS ON 2712 01:29:31,499 --> 01:29:32,233 THE OUTSIDE, WHAT IS IT LIKE IN 2713 01:29:32,233 --> 01:29:34,202 THE INSIDE? AND THIS IS ONE OF 2714 01:29:34,202 --> 01:29:35,403 THE CHALLENGES, ONE REASON WHY 2715 01:29:35,403 --> 01:29:36,904 WE HAVE PEOPLE ON THE STREETS IS 2716 01:29:36,904 --> 01:29:38,673 THE CONDITIONS OF THE HOUSING 2717 01:29:38,673 --> 01:29:40,875 STOCK. AND IT HAS A MAJOR 2718 01:29:40,875 --> 01:29:42,276 FACTOR. AND IT GOES TO LIKE, YOU 2719 01:29:42,276 --> 01:29:43,578 KNOW, IN TERMS OF THE PEOPLE ON 2720 01:29:43,578 --> 01:29:46,047 THE STREETS, HOW MANY ACTUALLY 2721 01:29:46,047 --> 01:29:47,648 HAVE HOUSING BUT ARE CHOOSING 2722 01:29:47,648 --> 01:29:49,517 FOR DIFFERENT REASONS NOT TO BE 2723 01:29:49,517 --> 01:29:51,085 THERE OR TO BE ON THE STREETS 2724 01:29:51,085 --> 01:29:53,788 LONGER THAN THEY WOULD 2725 01:29:53,788 --> 01:29:56,624 OTHERWISE. SO I BRING THAT UP. 2726 01:29:56,624 --> 01:29:57,625 CAN YOU SPEAK TO THAT AGAIN? I 2727 01:29:57,625 --> 01:29:59,160 MIGHT HAVE MISSED IT IN THE 2728 01:29:59,160 --> 01:29:59,827 BRIEFING, BUT, YOU KNOW, IN 2729 01:29:59,827 --> 01:30:01,996 TERMS OF THE STRATEGY AND THE 2730 01:30:01,996 --> 01:30:03,231 LINKAGES TO THE PUBLIC SAFETY 2731 01:30:03,231 --> 01:30:05,233 SIDE, IS THIS SOMETHING THAT 2732 01:30:05,233 --> 01:30:07,802 COMES UP AND EXECUTIVE SIDE IN 2733 01:30:07,802 --> 01:30:10,071 TERMS OF THE LINKS BETWEEN THE 2734 01:30:10,071 --> 01:30:11,873 MAINTENANCE PIECES AND THE 2735 01:30:11,873 --> 01:30:15,443 PUBLIC SAFETY ASPECTS? 2736 01:30:15,443 --> 01:30:16,110 -- IT'S CERTAINLY IMPORTANT TO 2737 01:30:16,110 --> 01:30:17,178 AVOID BLIGHT IN NEIGHBORHOODS. 2738 01:30:17,178 --> 01:30:19,714 THAT INCLUDES, YOU KNOW, VACANT 2739 01:30:19,714 --> 01:30:24,085 LOTS THAT CONTRIBUTE TO 2740 01:30:24,085 --> 01:30:24,585 CHALLENGES IN DIFFERENT 2741 01:30:24,585 --> 01:30:26,888 NEIGHBORHOODS. IT'S IT'S A LOT 2742 01:30:26,888 --> 01:30:28,089 THAT OPERATORS ARE FACING OUT 2743 01:30:28,089 --> 01:30:30,191 THERE RIGHT NOW. AND THE COSTS 2744 01:30:30,191 --> 01:30:32,059 CAN BE INCREDIBLY HIGH FOR WHAT 2745 01:30:32,059 --> 01:30:33,694 THEY HAVE COMING IN ON THE 2746 01:30:33,694 --> 01:30:35,463 REVENUE SIDE. THIS IS PART OF 2747 01:30:35,463 --> 01:30:38,065 WHAT WE'VE TRIED TO ADDRESS WITH 2748 01:30:38,065 --> 01:30:40,134 A NUMBER OF THE INVESTMENTS THAT 2749 01:30:40,134 --> 01:30:42,336 WE HAVE BROUGHT INTO THE SECTOR, 2750 01:30:42,336 --> 01:30:44,872 AND IT'S NOT SOLVING EVERY 2751 01:30:44,872 --> 01:30:47,041 SINGLE PROBLEM. I KNOW FROM MY 2752 01:30:47,041 --> 01:30:49,343 TIME AS AN OPERATOR OF 2753 01:30:49,343 --> 01:30:51,746 SUPPORTIVE HOUSING THAT ONE DAY 2754 01:30:51,746 --> 01:30:53,347 YOU COULD WALK BY A BUILDING AND 2755 01:30:53,347 --> 01:30:57,552 IT WOULD LOOK NOT GREAT. AND 2756 01:30:57,552 --> 01:31:00,888 INVESTMENT CAN GO IN, CHANGE THE 2757 01:31:00,888 --> 01:31:02,590 FACE OF THE PROJECT AND THINGS 2758 01:31:02,590 --> 01:31:06,194 LOOK REALLY DIFFERENT. A COUPLE 2759 01:31:06,194 --> 01:31:07,328 MONTHS LATER, WE WE KNOW THAT 2760 01:31:07,328 --> 01:31:11,599 THERE ARE NEEDS AND WE'VE TAKEN 2761 01:31:11,599 --> 01:31:12,233 SERIOUSLY USING OUR INVESTMENTS 2762 01:31:12,233 --> 01:31:13,467 IN THE POLICY TOOLS THAT WE HAVE 2763 01:31:13,467 --> 01:31:17,972 TO TRY TO IMPROVE CONDITIONS IN 2764 01:31:17,972 --> 01:31:18,539 THE AFFORDABLE HOMES IN OUR 2765 01:31:18,539 --> 01:31:19,440 PORTFOLIO, MORE WORK TO DO, FOR 2766 01:31:19,440 --> 01:31:22,677 SURE. 2767 01:31:22,677 --> 01:31:23,144 -- THANK YOU. ON THE 2768 01:31:23,144 --> 01:31:24,745 STABILIZATION FRONT, I THINK A 2769 01:31:24,745 --> 01:31:26,581 LOT OF PEOPLE TEND TO FORGET 2770 01:31:26,581 --> 01:31:28,149 AFFORDABLE HOUSING. YOU KNOW, 2771 01:31:28,149 --> 01:31:29,417 THEY'RE LANDLORDS. AND, YOU 2772 01:31:29,417 --> 01:31:30,418 KNOW, SOME OF THE LANDLORD 2773 01:31:30,418 --> 01:31:33,020 TENANT ISSUES, AS I'VE SAID 2774 01:31:33,020 --> 01:31:34,722 BEFORE, LIKE TWO YEARS GROUPS 2775 01:31:34,722 --> 01:31:35,556 COMING IN SAYING, HEY, WE NEED 2776 01:31:35,556 --> 01:31:36,891 TO CHANGE IT BECAUSE WE'RE 2777 01:31:36,891 --> 01:31:38,159 HURTING, WE'RE LANDLORDS, WE'RE 2778 01:31:38,159 --> 01:31:39,961 SUFFERING FROM REGULAR SMALL 2779 01:31:39,961 --> 01:31:41,762 SCALE LANDLORDS OR EVEN THE 2780 01:31:41,762 --> 01:31:45,466 CORPORATE TYPES. AND WE NEED 2781 01:31:45,466 --> 01:31:46,200 RELIEF. WE NEED CHANGES IN THE 2782 01:31:46,200 --> 01:31:47,969 LAWS AND SO FORTH. IN TERMS OF 2783 01:31:47,969 --> 01:31:49,704 LANDLORD TENANT, THAT DIDN'T 2784 01:31:49,704 --> 01:31:50,271 REALLY HAPPEN FOR DIFFERENT 2785 01:31:50,271 --> 01:31:55,376 REASONS. AND WE'RE HERE TODAY. 2786 01:31:55,376 --> 01:31:59,380 WITH THAT SAID, FIRST, I WANT TO 2787 01:31:59,380 --> 01:32:01,182 THANK YOU FOR THE SEATTLE 2788 01:32:01,182 --> 01:32:04,051 HOUSING INVESTMENT PLAN REPORT. 2789 01:32:04,051 --> 01:32:06,354 THE SHIP PLAN, COLLEAGUES, THIS 2790 01:32:06,354 --> 01:32:07,455 KIND OF THAT POINT THAT I JUST 2791 01:32:07,455 --> 01:32:09,824 MADE KIND OF GOES TO, YOU KNOW, 2792 01:32:09,824 --> 01:32:10,424 WHAT WE'RE LOOKING FOR WITH 2793 01:32:10,424 --> 01:32:11,759 THAT, YOU KNOW, THE SEATTLE 2794 01:32:11,759 --> 01:32:12,627 HOUSING INVESTMENT PLAN, YOU 2795 01:32:12,627 --> 01:32:13,594 KNOW, THE FIRST YEAR DID A GREAT 2796 01:32:13,594 --> 01:32:15,563 JOB OF LOOKING AT AFFORDABLE 2797 01:32:15,563 --> 01:32:18,966 HOUSING AND CENTRAL STAFF. MISS 2798 01:32:18,966 --> 01:32:20,201 LEBREC LOVED IT. MY TEAM LOVED 2799 01:32:20,201 --> 01:32:22,136 IT, YOU KNOW, AND THEN LAST 2800 01:32:22,136 --> 01:32:22,870 YEAR, THIS TIME WE BOUGHT A SLY 2801 01:32:22,870 --> 01:32:25,373 IN TO SAY, HEY, OKAY, AFFORDABLE 2802 01:32:25,373 --> 01:32:27,141 HOUSING, BUT PERMANENT 2803 01:32:27,141 --> 01:32:27,775 SUPPORTIVE HOUSING ON ONE SIDE 2804 01:32:27,775 --> 01:32:29,043 AND ALSO SOCIAL HOUSING ON THE 2805 01:32:29,043 --> 01:32:30,711 OTHER. AND HOW THAT PLAYS IN 2806 01:32:30,711 --> 01:32:32,246 TOGETHER, HOW IT IMPACTS THE 2807 01:32:32,246 --> 01:32:33,648 STRATEGY THAT YOU HAVE. CAN YOU 2808 01:32:33,648 --> 01:32:36,517 SPEAK TO THAT? IF IT DOES IMPACT 2809 01:32:36,517 --> 01:32:37,618 HOW IT IMPACTS AND SO FORTH, IN 2810 01:32:37,618 --> 01:32:40,187 TERMS OF LOOKING AT THE SYSTEM 2811 01:32:40,187 --> 01:32:43,224 MORE IN ITS ENTIRETY? 2812 01:32:43,224 --> 01:32:43,491 -- SURE. 2813 01:32:43,491 --> 01:32:45,893 -- YES. YOU YOU WERE ABSENT FROM 2814 01:32:45,893 --> 01:32:46,460 MY EARLIER REFERENCE TO THE 2815 01:32:46,460 --> 01:32:47,995 SEATTLE HOUSING INVESTMENT PLAN. 2816 01:32:47,995 --> 01:32:50,298 COUNCILMEMBER KETTLE. THAT'S A 2817 01:32:50,298 --> 01:32:52,400 VERY IMPORTANT SLY RESPONSE THAT 2818 01:32:52,400 --> 01:32:53,801 WE'VE WE'VE CONTRIBUTED TO THE 2819 01:32:53,801 --> 01:32:55,002 LAST COUPLE OF YEARS, AND IT WAS 2820 01:32:55,002 --> 01:32:57,872 A GOOD EXERCISE. THE ONE THE 2821 01:32:57,872 --> 01:32:58,673 RESPONSE THAT WE SUBMITTED THIS 2822 01:32:58,673 --> 01:33:02,476 YEAR, YOU CAN SEE THE SEATTLE 2823 01:33:02,476 --> 01:33:03,110 SOCIAL HOUSING PDA INVESTMENTS 2824 01:33:03,110 --> 01:33:05,346 IN PINK TO SORT OF REFLECT SOME 2825 01:33:05,346 --> 01:33:06,013 OF THEIR BRANDING THAT THEY'VE 2826 01:33:06,013 --> 01:33:07,281 BEEN BRINGING FORWARD TO COUNCIL 2827 01:33:07,281 --> 01:33:10,318 AS WELL. THEY ARE PLANNING 2828 01:33:10,318 --> 01:33:11,919 CURRENTLY WITH WHAT THEIR 2829 01:33:11,919 --> 01:33:14,488 CHARTER PROVIDES FOR THEM TO DO 2830 01:33:14,488 --> 01:33:17,658 IS THEIR INCOME LEVELS ARE 10% 2831 01:33:17,658 --> 01:33:21,729 AT 30% AMI, 30% AT AT 50, 60, 2832 01:33:21,729 --> 01:33:24,665 30%, AT 80, 30% AT 120. SO 2833 01:33:24,665 --> 01:33:25,933 THEY'RE DOING A BIT OF A SPREAD 2834 01:33:25,933 --> 01:33:28,202 THAT GOES FURTHER UP THE INCOME 2835 01:33:28,202 --> 01:33:29,870 CHART THAN THE OFFICE OF HOUSING 2836 01:33:29,870 --> 01:33:32,606 CURRENTLY INVESTS IN. AND YOU 2837 01:33:32,606 --> 01:33:34,075 CAN SEE WHAT THEY PROJECTED OVER 2838 01:33:34,075 --> 01:33:36,077 THE NEXT SEVERAL YEARS REFLECTED 2839 01:33:36,077 --> 01:33:37,445 IN THAT RESPONSE TO THE SLY. 2840 01:33:37,445 --> 01:33:40,081 HAPPY TO SEND IT OVER TO. BUT 2841 01:33:40,081 --> 01:33:41,515 THIS CHART'S BEEN VERY RELEVANT 2842 01:33:41,515 --> 01:33:43,918 FOR US AS WE ARE EXAMINING WHAT 2843 01:33:43,918 --> 01:33:45,419 OUR INVESTMENTS AND POLICIES 2844 01:33:45,419 --> 01:33:47,021 WILL LOOK LIKE IN THE YEAR AHEAD 2845 01:33:47,021 --> 01:33:49,957 TO SEE WHAT PROGRESS WE MIGHT BE 2846 01:33:49,957 --> 01:33:50,625 MAKING. YOU ALSO ASKED FOR 2847 01:33:50,625 --> 01:33:51,859 SEATTLE HOUSING AUTHORITY, SO 2848 01:33:51,859 --> 01:33:53,728 WE'VE ALSO PUT THAT THE WHAT 2849 01:33:53,728 --> 01:33:55,796 SEATTLE HOUSING AUTHORITY 2850 01:33:55,796 --> 01:33:57,465 PROJECTED TO BRING ONLINE IN THE 2851 01:33:57,465 --> 01:33:59,700 NEXT SEVERAL YEARS. AND LARGELY, 2852 01:33:59,700 --> 01:34:00,801 WE JUST STILL HAVE SUCH AN 2853 01:34:00,801 --> 01:34:03,437 ENORMOUS GAP BELOW 50% OF AREA 2854 01:34:03,437 --> 01:34:05,740 MEDIAN INCOME IN SEATTLE. AND SO 2855 01:34:05,740 --> 01:34:07,074 THAT IS WHERE THE OFFICE OF 2856 01:34:07,074 --> 01:34:08,509 HOUSING WILL BE FOCUSING OUR 2857 01:34:08,509 --> 01:34:09,543 INVESTMENTS. AND IT'S REALLY 2858 01:34:09,543 --> 01:34:13,347 HELPED US TO NARROW THAT FOCUS. 2859 01:34:13,347 --> 01:34:14,649 -- WELL, THANK YOU FOR THE 2860 01:34:14,649 --> 01:34:15,716 REPORT. AND I ACTUALLY I'M 2861 01:34:15,716 --> 01:34:16,917 LOOKING AT THE GRAPH RIGHT NOW. 2862 01:34:16,917 --> 01:34:18,853 IT SHOULD HAVE BEEN IN THIS. IT 2863 01:34:18,853 --> 01:34:19,487 SHOULD HAVE BEEN IN THE BRIEFING 2864 01:34:19,487 --> 01:34:20,354 BECAUSE I THINK IT WOULD HELP. 2865 01:34:20,354 --> 01:34:21,589 I'M NOT SURE IF MY COLLEAGUES 2866 01:34:21,589 --> 01:34:22,923 HAVE SEEN IT. THIS THIS MEMO 2867 01:34:22,923 --> 01:34:26,427 CAME OUT ON JUNE 30th. IT WAS 2868 01:34:26,427 --> 01:34:28,929 DIRECTED TO HOUSING CHAIR 2869 01:34:28,929 --> 01:34:30,464 FOSTER, BUT IT GOES TO THIS. AND 2870 01:34:30,464 --> 01:34:32,033 I JUST THINK IT'S REALLY 2871 01:34:32,033 --> 01:34:33,234 IMPORTANT FOR FOR EXAMPLE, IN 2872 01:34:33,234 --> 01:34:35,302 TERMS OF STRATEGIES, YOU KNOW, 2873 01:34:35,302 --> 01:34:40,374 AND THIS GOES TO BUDGET, THE 2874 01:34:40,374 --> 01:34:41,942 SEATTLE TAXPAYERS, YOU KNOW, WE 2875 01:34:41,942 --> 01:34:43,277 TALK ABOUT AFFORDABILITY, ALL 2876 01:34:43,277 --> 01:34:44,512 THE DIFFERENT TAXES AND SO 2877 01:34:44,512 --> 01:34:46,847 FORTH. WELL, THE LATEST ONE IS 2878 01:34:46,847 --> 01:34:47,448 THE SOCIAL HOUSING DEVELOPER, 2879 01:34:47,448 --> 01:34:48,215 WHICH I HAVE BEEN SUPPORTIVE. WE 2880 01:34:48,215 --> 01:34:51,318 NEED IT TO SUCCEED. BUT YOU 2881 01:34:51,318 --> 01:34:54,588 KNOW, THEIR REVENUE IN 2025 WAS 2882 01:34:54,588 --> 01:34:56,991 115 MILLION. I DON'T EXPECT 2883 01:34:56,991 --> 01:34:59,560 ANYTHING. I'VE SEEN NOTHING TO 2884 01:34:59,560 --> 01:35:01,695 SUGGEST IT'S GOING TO DROP OFF 2885 01:35:01,695 --> 01:35:03,798 PRECIPITOUSLY OR SO THAT'S 2886 01:35:03,798 --> 01:35:05,566 STRONG THAT THE SEATTLE 2887 01:35:05,566 --> 01:35:06,133 TAXPAYERS ARE DOING TO THE 2888 01:35:06,133 --> 01:35:08,369 HOUSING SPACE. AND IN A LOT OF 2889 01:35:08,369 --> 01:35:11,405 WAYS, I THINK THAT SHOULD BE YOU 2890 01:35:11,405 --> 01:35:12,073 DID THE SHIP REPORT IN TERMS OF. 2891 01:35:12,073 --> 01:35:14,675 BUT IT ALSO SHOULD BE, YOU KNOW, 2892 01:35:14,675 --> 01:35:16,310 CBO ALSO LOOKING AT, YOU KNOW, 2893 01:35:16,310 --> 01:35:18,012 DOES. SO DIRECTOR PANUCCI DOES 2894 01:35:18,012 --> 01:35:20,047 DOES CBO DOES BUDGET OFFICE LOOK 2895 01:35:20,047 --> 01:35:21,649 AT THE MONEY. THAT'S THE SOCIAL 2896 01:35:21,649 --> 01:35:23,751 HOUSING. SEATTLE SOCIAL HOUSING 2897 01:35:23,751 --> 01:35:24,618 DEVELOPER. LET ME SAY THAT 2898 01:35:24,618 --> 01:35:26,620 AGAIN. THE SEATTLE SOCIAL 2899 01:35:26,620 --> 01:35:28,189 HOUSING DEVELOPER THAT IS 2900 01:35:28,189 --> 01:35:28,756 GETTING MONEY FROM SEATTLE 2901 01:35:28,756 --> 01:35:30,357 TAXPAYERS, IS THAT INCLUDED IN 2902 01:35:30,357 --> 01:35:32,126 THE CALCULATIONS IN TERMS OF 2903 01:35:32,126 --> 01:35:35,262 WHAT WE'RE DOING BUDGET WISE, 2904 01:35:35,262 --> 01:35:36,163 GIVEN THAT, YOU KNOW, THE 2905 01:35:36,163 --> 01:35:38,065 SEATTLE THE PEOPLE OF SEATTLE 2906 01:35:38,065 --> 01:35:42,103 ARE RAISING THAT FOR THE HOUSING 2907 01:35:42,103 --> 01:35:42,336 PIECE? 2908 01:35:42,336 --> 01:35:45,339 -- IT ISN'T IT IS NOT INCLUDED 2909 01:35:45,339 --> 01:35:47,074 IN THE CITY BUDGET. SO IT'S NOT 2910 01:35:47,074 --> 01:35:49,043 FUNDING. WE HAVE ANY CONTROL 2911 01:35:49,043 --> 01:35:50,978 OVER, ALTHOUGH IT IS CERTAINLY A 2912 01:35:50,978 --> 01:35:52,646 PART OF THE CONVERSATION ABOUT 2913 01:35:52,646 --> 01:35:55,249 THE OVERALL INVESTMENTS FROM 2914 01:35:55,249 --> 01:35:57,151 SEATTLE TAXPAYERS IN IN 2915 01:35:57,151 --> 01:35:59,587 AFFORDABLE HOUSING. AND WE 2916 01:35:59,587 --> 01:36:00,154 CERTAINLY APPRECIATE THOSE 2917 01:36:00,154 --> 01:36:03,858 INVESTMENTS. BUT BECAUSE THERE 2918 01:36:03,858 --> 01:36:05,159 ISN'T ANY IT IS NOT REFLECTED 2919 01:36:05,159 --> 01:36:06,093 IN THE BUDGET BECAUSE IT IS NOT 2920 01:36:06,093 --> 01:36:07,361 MONEY THAT COMES TO US. I WILL 2921 01:36:07,361 --> 01:36:11,165 SAY THERE IS A MINOR. 2922 01:36:11,165 --> 01:36:12,867 ACKNOWLEDGMENT OF THAT FUNDING 2923 01:36:12,867 --> 01:36:15,169 THE OFFICE OF ECONOMIC AND 2924 01:36:15,169 --> 01:36:16,203 REVENUE FORECAST DOES DO THE 2925 01:36:16,203 --> 01:36:17,471 FORECASTING OF THAT REVENUE 2926 01:36:17,471 --> 01:36:19,940 SOURCE ON BEHALF OF THE SOCIAL 2927 01:36:19,940 --> 01:36:21,775 HOUSING DEVELOPER, AND THEY DO 2928 01:36:21,775 --> 01:36:24,712 COMPENSATE US FOR THAT WORK. AND 2929 01:36:24,712 --> 01:36:25,746 SO THAT IS REFLECTED IN THE IN 2930 01:36:25,746 --> 01:36:28,048 THE BUDGET. 2931 01:36:28,048 --> 01:36:29,717 -- SO THAT MONEY THAT WE DO 2932 01:36:29,717 --> 01:36:30,284 RECEIVE THROUGH THE SOCIAL 2933 01:36:30,284 --> 01:36:32,653 HOUSING FUND, YOU KNOW, IT COULD 2934 01:36:32,653 --> 01:36:34,388 BE PART OF THE CALCULATIONS IN 2935 01:36:34,388 --> 01:36:35,789 TERMS OF, YOU KNOW, HARD 2936 01:36:35,789 --> 01:36:37,658 CHOICES. IF IT'S $115 MILLION, 2937 01:36:37,658 --> 01:36:39,059 THAT COULD GIVE FLEXIBILITY IN 2938 01:36:39,059 --> 01:36:40,194 TERMS OF WHAT WE'RE DOING WITH 2939 01:36:40,194 --> 01:36:41,929 SOME OF THE OTHER FUNDS THAT MAY 2940 01:36:41,929 --> 01:36:43,964 HAVE TO GO TO OTHER PRIORITIES 2941 01:36:43,964 --> 01:36:45,599 AND THE LIKE. AND THAT'S KIND OF 2942 01:36:45,599 --> 01:36:48,135 THE, YOU KNOW, THE, THE 2943 01:36:48,135 --> 01:36:49,970 DIRECTION OF THE QUESTION TO YOU 2944 01:36:49,970 --> 01:36:50,604 AS BUDGET DIRECTOR IN THE SENSE 2945 01:36:50,604 --> 01:36:52,306 OF IS THAT PART OF THE 2946 01:36:52,306 --> 01:36:55,476 CALCULATION? LIKE, WE CAN WE CAN 2947 01:36:55,476 --> 01:36:56,610 ACCEPT A PIECE HERE AND USE THIS 2948 01:36:56,610 --> 01:36:59,380 MONEY ELSEWHERE, BECAUSE WE DO 2949 01:36:59,380 --> 01:37:02,183 HAVE 115 MILLION COMING INTO 2950 01:37:02,183 --> 01:37:02,583 HOUSING OVERALL. 2951 01:37:02,583 --> 01:37:05,753 -- I THINK OVERALL, THERE ARE 2952 01:37:05,753 --> 01:37:07,188 SIGNIFICANT INVESTMENTS IN 2953 01:37:07,188 --> 01:37:08,823 HOUSING THAT ARE NECESSARY TO 2954 01:37:08,823 --> 01:37:09,790 ADDRESS THE HOUSING NEEDS OF THE 2955 01:37:09,790 --> 01:37:12,626 COMMUNITY. SO THAT IS MORE OF A 2956 01:37:12,626 --> 01:37:14,862 POLICY CONSIDERATION THAN A IN 2957 01:37:14,862 --> 01:37:16,430 TERMS OF I GUESS I'M NOT 2958 01:37:16,430 --> 01:37:17,798 ENTIRELY CLEAR ON HOW TO ANSWER 2959 01:37:17,798 --> 01:37:19,833 ANSWER THAT QUESTION. THE THE 2960 01:37:19,833 --> 01:37:22,269 MONEY THAT THE SOCIAL HOUSING 2961 01:37:22,269 --> 01:37:23,904 DEVELOPER RECEIVES IS NOT 2962 01:37:23,904 --> 01:37:26,507 REFLECTED IN THE CITY BUDGET, 2963 01:37:26,507 --> 01:37:28,209 NOR DO WE HAVE AUTHORITY TO SORT 2964 01:37:28,209 --> 01:37:30,344 OF DIRECT HOW THEY ARE USING 2965 01:37:30,344 --> 01:37:33,113 THOSE FUNDS AS THE CITY, AS THE 2966 01:37:33,113 --> 01:37:35,015 CITY BUDGET OFFICE. 2967 01:37:35,015 --> 01:37:37,117 -- BUT IN TIGHT TIMES, IF 2968 01:37:37,117 --> 01:37:38,886 SEATTLE TAXPAYERS ARE GIVING 2969 01:37:38,886 --> 01:37:40,721 $115 MILLION IN THIS HOUSING 2970 01:37:40,721 --> 01:37:42,957 AREA, IT COULD PROVIDE SOME 2971 01:37:42,957 --> 01:37:43,557 FLEXIBILITY IN THE BUDGETING 2972 01:37:43,557 --> 01:37:45,960 PROCESS BECAUSE, HEY, YOU KNOW, 2973 01:37:45,960 --> 01:37:46,627 THEY'RE ALSO GOT THEIR SHOULDER 2974 01:37:46,627 --> 01:37:49,330 IN AND THEY'RE WORKING HARD TO 2975 01:37:49,330 --> 01:37:49,863 CONTRIBUTE TO THE OVERALL 2976 01:37:49,863 --> 01:37:52,566 PROCESS 2977 01:37:52,566 --> 01:37:53,167 -- I THINK THAT'S CERTAINLY 2978 01:37:53,167 --> 01:37:53,901 SOMETHING THAT YOU CAN CONSIDER 2979 01:37:53,901 --> 01:37:56,904 AS A POLICY MAKER, AS YOU MAKE 2980 01:37:56,904 --> 01:37:57,438 CHOICES ABOUT THE BUDGET. 2981 01:37:57,438 --> 01:37:58,772 -- WELL, I'LL JUST SAY THAT 2982 01:37:58,772 --> 01:38:00,107 BECAUSE AS YOU SAID YESTERDAY, 2983 01:38:00,107 --> 01:38:01,642 YOU ARE ACTUALLY THE NUMBER OF 2984 01:38:01,642 --> 01:38:03,077 DAYS, HARD CHOICES, HARD 2985 01:38:03,077 --> 01:38:05,212 CHOICES, WHICH I WOULD ARGUE 2986 01:38:05,212 --> 01:38:07,448 WRONG CHOICES AT TIMES. AND 2987 01:38:07,448 --> 01:38:09,617 THOSE WRONG CHOICES COULD BE 2988 01:38:09,617 --> 01:38:10,217 AMELIORATED WITH POTENTIALLY 2989 01:38:10,217 --> 01:38:12,419 SOME OF THESE, YOU KNOW, 2990 01:38:12,419 --> 01:38:13,787 DIFFERENT CONSIDERATIONS ON THAT 2991 01:38:13,787 --> 01:38:17,591 POINT. AND THIS GOES BACK TO 2992 01:38:17,591 --> 01:38:19,226 STABILIZATION. COULD THERE BE A 2993 01:38:19,226 --> 01:38:21,061 ROLE FOR THE SEATTLE SOCIAL 2994 01:38:21,061 --> 01:38:22,830 HOUSING DEVELOPER IF THERE IS 2995 01:38:22,830 --> 01:38:25,332 HOUSING, AFFORDABLE HOUSING 2996 01:38:25,332 --> 01:38:27,468 ENTITY THAT WAS IN TROUBLE FOR 2997 01:38:27,468 --> 01:38:29,470 THEM TO MAYBE LOOK TO BUILD 2998 01:38:29,470 --> 01:38:32,273 THEIR PORTFOLIO WITH A FORMER 2999 01:38:32,273 --> 01:38:33,240 AFFORDABLE HOUSING PROPERTY THAT 3000 01:38:33,240 --> 01:38:34,775 THEN MAY BECOME A SOCIAL HOUSING 3001 01:38:34,775 --> 01:38:36,176 PROPERTY? IS THAT SOMETHING THAT 3002 01:38:36,176 --> 01:38:39,079 OH, IS CONSIDERED? 3003 01:38:39,079 --> 01:38:41,215 -- WE HAVE MET MULTIPLE OF OUR 3004 01:38:41,215 --> 01:38:42,750 STAFF, HAVE MET WITH SOCIAL 3005 01:38:42,750 --> 01:38:44,985 HOUSING DEVELOPER STAFF NUMEROUS 3006 01:38:44,985 --> 01:38:46,720 TIMES OVER THE LAST YEAR TO HAVE 3007 01:38:46,720 --> 01:38:47,988 A NUMBER OF DIFFERENT TYPES OF 3008 01:38:47,988 --> 01:38:49,290 CONVERSATIONS. WE'VE FOCUSED ON 3009 01:38:49,290 --> 01:38:51,058 DATA. WE'VE TALKED ABOUT 3010 01:38:51,058 --> 01:38:52,359 HOUSING MARKET DATA. WE'RE 3011 01:38:52,359 --> 01:38:54,962 SHARING AS MUCH INFORMATION AS 3012 01:38:54,962 --> 01:38:57,131 WE CAN WITH THEM AND HEARING 3013 01:38:57,131 --> 01:38:59,400 MORE ABOUT THEIR PRIORITIES. WE 3014 01:38:59,400 --> 01:39:01,335 DID TALK TALK ABOUT THIS 3015 01:39:01,335 --> 01:39:02,936 CONCEPT. AT THIS POINT IN TIME, 3016 01:39:02,936 --> 01:39:04,405 IT'S NOT A HIGH INTEREST FOR 3017 01:39:04,405 --> 01:39:07,708 THEM AS THEY ARE REALLY STRIVING 3018 01:39:07,708 --> 01:39:11,278 TO IDENTIFY ACQUISITIONS THAT 3019 01:39:11,278 --> 01:39:14,381 ARE IN AREAS OF OPPORTUNITY AND 3020 01:39:14,381 --> 01:39:17,184 THAT ARE BUILDINGS OF VERY HIGH 3021 01:39:17,184 --> 01:39:19,053 QUALITY. TYPICALLY, THE 3022 01:39:19,053 --> 01:39:19,720 DISTRESSED PROPERTIES THAT WE'RE 3023 01:39:19,720 --> 01:39:21,288 SEEING IN OUR AFFORDABLE HOUSING 3024 01:39:21,288 --> 01:39:24,024 SECTOR REQUIRE SIGNIFICANT 3025 01:39:24,024 --> 01:39:25,192 INVESTMENT, OFTEN ARE IN 3026 01:39:25,192 --> 01:39:27,895 DIFFERENT TYPES OF NEIGHBORHOODS 3027 01:39:27,895 --> 01:39:28,462 THAN WHAT I UNDERSTAND, THE 3028 01:39:28,462 --> 01:39:31,231 SOCIAL HOUSING DEVELOPER, TO BE 3029 01:39:31,231 --> 01:39:33,367 INTERESTED IN PURSUING. IN 3030 01:39:33,367 --> 01:39:36,236 ADDITION, THEY HAVE A VERY 3031 01:39:36,236 --> 01:39:36,837 SPECIFIC OWNERSHIP OWNERSHIP 3032 01:39:36,837 --> 01:39:38,505 STRUCTURE REQUIREMENT IN THEIR 3033 01:39:38,505 --> 01:39:40,841 CHARTER. SO FAR, THAT'S NOT AN 3034 01:39:40,841 --> 01:39:42,276 OPTION THAT WE ARE PURSUING, AND 3035 01:39:42,276 --> 01:39:44,611 WE ARE LOOKING INWARD TO THE 3036 01:39:44,611 --> 01:39:46,046 OFFICE OF HOUSING BUDGET TO 3037 01:39:46,046 --> 01:39:47,381 BRING ALL OF OUR RESOURCES TO 3038 01:39:47,381 --> 01:39:47,981 BEAR AND TO THE PRESERVATION 3039 01:39:47,981 --> 01:39:50,117 NEEDS OF OUR PORTFOLIO. 3040 01:39:50,117 --> 01:39:51,085 -- THANK YOU. I DO BELIEVE THAT 3041 01:39:51,085 --> 01:39:53,887 THEY'RE LOOKING TO GO CITYWIDE, 3042 01:39:53,887 --> 01:39:55,723 ACROSS THE BOARD, AND I 3043 01:39:55,723 --> 01:39:56,323 RECOGNIZE THERE'S THERE'S 3044 01:39:56,323 --> 01:39:57,224 DIFFERENT TYPES OF DISTRESSED 3045 01:39:57,224 --> 01:39:58,926 PROPERTIES. THERE'S THOSE THAT 3046 01:39:58,926 --> 01:39:59,727 ARE PHYSICALLY IN DISTRESS, AND 3047 01:39:59,727 --> 01:40:01,562 THEN THERE'S THOSE THAT ARE 3048 01:40:01,562 --> 01:40:02,196 FINANCIALLY IN DISTRESS. AND SO 3049 01:40:02,196 --> 01:40:05,499 THERE MAY BE OPPORTUNITIES. THIS 3050 01:40:05,499 --> 01:40:07,334 WHOLE LINE OF QUESTIONING AND 3051 01:40:07,334 --> 01:40:09,436 THE SHIP AND REPORT AND THESE 3052 01:40:09,436 --> 01:40:10,838 OTHER THINGS IS I JUST WANT TO 3053 01:40:10,838 --> 01:40:15,042 KIND OF PUSH, THE, YOU KNOW, FOR 3054 01:40:15,042 --> 01:40:16,677 US TO THINK BIGGER, AND 3055 01:40:16,677 --> 01:40:17,311 PARTICULARLY BECAUSE IT IS THE 3056 01:40:17,311 --> 01:40:18,512 SEATTLE TAXPAYERS THAT FUND THAT 3057 01:40:18,512 --> 01:40:20,714 AS WELL. AND THEN THE SHARED 3058 01:40:20,714 --> 01:40:22,149 SPACE THAT EVERYBODY IS WORKING 3059 01:40:22,149 --> 01:40:23,484 IN THAT IN TERMS OF 3060 01:40:23,484 --> 01:40:24,051 COLLABORATION, IT'S LIKE 3061 01:40:24,051 --> 01:40:25,219 BRINGING THE JOINT VOICE TO THE 3062 01:40:25,219 --> 01:40:25,953 MILITARY. I THINK WE HAVE TO 3063 01:40:25,953 --> 01:40:28,956 HAVE A JOINT HOUSING FORCE 3064 01:40:28,956 --> 01:40:31,959 EFFORT HERE WHERE THE OA AND 3065 01:40:31,959 --> 01:40:32,493 SOCIAL HOUSING, INCLUDING 3066 01:40:32,493 --> 01:40:33,394 SEATTLE HOUSING AUTHORITY, WHICH 3067 01:40:33,394 --> 01:40:36,330 IS DIFFERENT, I RECOGNIZE FOR 3068 01:40:36,330 --> 01:40:38,565 DIFFERENT REASONS, BUT TO TO 3069 01:40:38,565 --> 01:40:39,666 ENSURE THAT THE END PRODUCT IS 3070 01:40:39,666 --> 01:40:40,768 GETTING WORSE, WHERE WE NEED TO 3071 01:40:40,768 --> 01:40:43,504 BE, AS OPPOSED TO DISPARATE 3072 01:40:43,504 --> 01:40:46,140 ACTIONS. AND I JUST, I JUST 3073 01:40:46,140 --> 01:40:46,673 RAISED THESE QUESTIONS TO 3074 01:40:46,673 --> 01:40:48,409 INCLUDE THE BUDGET DIRECTIONS TO 3075 01:40:48,409 --> 01:40:50,144 KIND OF PRESS DIRECTOR PANUCCI 3076 01:40:50,144 --> 01:40:54,181 BECAUSE, YOU KNOW, IT'S A, TO 3077 01:40:54,181 --> 01:40:55,249 ENGAGE ON THAT DISCOURSE. BUT I 3078 01:40:55,249 --> 01:40:56,250 JUST THINK IT'S REALLY 3079 01:40:56,250 --> 01:40:58,285 IMPORTANT. CHAIR. AND FOR THE 3080 01:40:58,285 --> 01:40:59,119 HOUSING COMMITTEE CHAIR AND FOR 3081 01:40:59,119 --> 01:41:02,222 ALL OF US TO THINK ABOUT THIS. 3082 01:41:02,222 --> 01:41:03,424 AND THAT'S THE RATIONALE BEHIND 3083 01:41:03,424 --> 01:41:05,726 MY QUESTION. SO THANK YOU VERY 3084 01:41:05,726 --> 01:41:05,926 MUCH. 3085 01:41:05,926 --> 01:41:06,760 -- THANK ME. JUST ONE MORE 3086 01:41:06,760 --> 01:41:08,796 RESPONSE. 3087 01:41:08,796 --> 01:41:09,329 -- MEMBER KETTLE DOES THE 3088 01:41:09,329 --> 01:41:11,231 COMMITTEE TABLE HAVE ANYTHING TO 3089 01:41:11,231 --> 01:41:13,133 SHARE YEAH, SURE. 3090 01:41:13,133 --> 01:41:14,701 -- ONE MORE RESPONSE TO THAT. 3091 01:41:14,701 --> 01:41:19,573 CHAIR STRAUSS WE ALSO HAVE 3092 01:41:19,573 --> 01:41:21,875 SPOKEN QUITE A BIT WITH SEATTLE 3093 01:41:21,875 --> 01:41:22,876 HOUSING AUTHORITY IN THE LAST 3094 01:41:22,876 --> 01:41:24,211 YEAR, AND IT'S REALLY IMPORTANT 3095 01:41:24,211 --> 01:41:25,112 TO US THAT WE VIEW ALL OF THESE 3096 01:41:25,112 --> 01:41:30,050 EFFORTS TO BE COMPLEMENTARY. WE 3097 01:41:30,050 --> 01:41:30,584 ARE STRIVING TO ACHIEVE A 3098 01:41:30,584 --> 01:41:32,152 PERCENTAGE OF MARKET SHARE OF 3099 01:41:32,152 --> 01:41:33,053 OUR HOUSING MARKET, THAT IS 3100 01:41:33,053 --> 01:41:34,321 INCOME AND RENT RESTRICTED, AND 3101 01:41:34,321 --> 01:41:36,090 ALL OF US ARE WORKING TOWARD 3102 01:41:36,090 --> 01:41:39,393 THAT GOAL. AND THAT IS THE MOST 3103 01:41:39,393 --> 01:41:42,229 IMPORTANT PIECE THAT HELPS TO 3104 01:41:42,229 --> 01:41:42,830 END HOMELESSNESS AND PROVIDE 3105 01:41:42,830 --> 01:41:45,132 STABILITY FOR OUR LOWEST INCOME 3106 01:41:45,132 --> 01:41:47,701 RENTERS IN THE CITY. SO SOCIAL 3107 01:41:47,701 --> 01:41:49,803 HOUSING IS SERVING SORT OF A 3108 01:41:49,803 --> 01:41:50,404 DIFFERENT INCOME STRATA THAN 3109 01:41:50,404 --> 01:41:52,039 WHAT THE OFFICE OF HOUSING IS 3110 01:41:52,039 --> 01:41:54,541 FOCUSING ON, WHICH IS GOING 3111 01:41:54,541 --> 01:41:56,310 FORWARD REALLY BELOW 50% OF AREA 3112 01:41:56,310 --> 01:41:58,378 MEDIAN INCOME IS OUR IS OUR AREA 3113 01:41:58,378 --> 01:41:59,146 OF EMPHASIS. 3114 01:41:59,146 --> 01:42:01,415 -- OKAY. THANK YOU. 3115 01:42:01,415 --> 01:42:01,982 -- THANK YOU. COUNCILMEMBER 3116 01:42:01,982 --> 01:42:02,749 KETTLE. ANYTHING ELSE? THANK 3117 01:42:02,749 --> 01:42:04,017 YOU. WE'RE GOING TO CONTINUE 3118 01:42:04,017 --> 01:42:04,852 MOVING ON. ANYONE WHO HAS NOT 3119 01:42:04,852 --> 01:42:06,253 SPOKEN YET, WOULD YOU LIKE TO 3120 01:42:06,253 --> 01:42:09,756 SPEAK? I'LL JUST RUN THROUGH. 3121 01:42:09,756 --> 01:42:11,625 COUNCILMEMBER RIVERA DID YOU GO 3122 01:42:11,625 --> 01:42:12,793 BEFORE AS WELL? ALL RIGHT. I'M 3123 01:42:12,793 --> 01:42:15,429 GOING TO DO MY PIECE AND THEN 3124 01:42:15,429 --> 01:42:18,398 I'LL CALL ON YOU FOR BRIEF 3125 01:42:18,398 --> 01:42:19,433 REMARKS. LOOKING AT OUR SEVEN 3126 01:42:19,433 --> 01:42:21,135 YEAR LOOK BACK, IT DOESN'T EVEN 3127 01:42:21,135 --> 01:42:22,836 TELL THE WHOLE STORY. SEVEN 3128 01:42:22,836 --> 01:42:27,241 YEARS AGO, OFFICE OF HOUSING WAS 3129 01:42:27,241 --> 01:42:29,710 A WAS 408% SMALLER THAN IT IS 3130 01:42:29,710 --> 01:42:33,547 TODAY. IF YOU GO BACK TO 2017, I 3131 01:42:33,547 --> 01:42:36,517 BELIEVE IT WAS ONLY $7.6 MILLION 3132 01:42:36,517 --> 01:42:39,853 THAT WE INVESTED IN THE OFFICE 3133 01:42:39,853 --> 01:42:42,723 OF HOUSING. IN TOTAL SO HERE WE 3134 01:42:42,723 --> 01:42:50,464 ARE IN 2026, LOOKING AT THE 2027 3135 01:42:50,464 --> 01:42:53,500 BUDGET OF $347 MILLION. SORRY, 3136 01:42:53,500 --> 01:42:55,836 THERE'S THREE ZEROS THAT YOU 3137 01:42:55,836 --> 01:42:58,739 DON'T PRINT. THERE. I MEAN 3138 01:42:58,739 --> 01:43:01,008 IT'S REALLY IMPORTANT. THE CITY 3139 01:43:01,008 --> 01:43:02,142 OF SEATTLE IS TWICE AS BIG AS 3140 01:43:02,142 --> 01:43:04,144 WHEN I WAS GROWING UP THROUGH 3141 01:43:04,144 --> 01:43:05,279 THE 2010s. WE WENT THROUGH A 3142 01:43:05,279 --> 01:43:10,050 GROWTH SPURT AND WE WERE ONLY 3143 01:43:10,050 --> 01:43:12,586 RELYING ON AN HOUSING LEVY THAT 3144 01:43:12,586 --> 01:43:14,821 WAS BUILT BEFORE THE GROWTH 3145 01:43:14,821 --> 01:43:21,828 SPURT IN FROM 2017 TO 2023. SO 3146 01:43:21,828 --> 01:43:23,897 IN 2017, $7.6 MILLION. THEN WE 3147 01:43:23,897 --> 01:43:24,865 ADDED MANDATORY HOUSING 3148 01:43:24,865 --> 01:43:27,501 AFFORDABILITY. THAT WAS BRINGING 3149 01:43:27,501 --> 01:43:30,037 IN ABOUT $67 MILLION ON AVERAGE 3150 01:43:30,037 --> 01:43:34,007 ANNUALLY FOR 2019 THROUGH 2023. 3151 01:43:34,007 --> 01:43:35,742 IN 2022, WE ADDED, IF YOU WANT 3152 01:43:35,742 --> 01:43:38,345 TO GO BACK TO SLIDE THREE, IT 3153 01:43:38,345 --> 01:43:40,814 SHOWS ALL OF WHAT I'M TALKING 3154 01:43:40,814 --> 01:43:43,884 ABOUT HERE IN TODAY'S NUMBERS. 3155 01:43:43,884 --> 01:43:45,285 IN 2022, WE STARTED COLLECTING 3156 01:43:45,285 --> 01:43:48,722 THE JUMP START FEES THAT WE 3157 01:43:48,722 --> 01:43:53,760 PASSED DURING 2020. AND THEN IN 3158 01:43:53,760 --> 01:43:55,429 2023, WE PASSED A NEW HOUSING 3159 01:43:55,429 --> 01:43:58,298 LEVY, ADDING $139 MILLION 3160 01:43:58,298 --> 01:44:02,469 ANNUALLY. HOWEVER, IN 2024, MH 3161 01:44:02,469 --> 01:44:06,039 AYE HAD DROPPED TO $24 MILLION 3162 01:44:06,039 --> 01:44:12,579 ANNUALLY, AND IN 2026, WE ARE 3163 01:44:12,579 --> 01:44:15,716 STILL WE ARE JUST OH, WE STILL 3164 01:44:15,716 --> 01:44:18,151 HAD ANOTHER $124 MILLION THROUGH 3165 01:44:18,151 --> 01:44:18,652 SEATTLE SOCIAL HOUSING 3166 01:44:18,652 --> 01:44:20,554 DEVELOPER. SO I THINK THE POINT 3167 01:44:20,554 --> 01:44:22,189 THAT COUNCILMEMBER KETTLE MAY 3168 01:44:22,189 --> 01:44:27,160 HAVE BEEN MAKING WAS WE ARE ONLY 3169 01:44:27,160 --> 01:44:28,362 $5 MILLION FEWER. IF WE HAD $5 3170 01:44:28,362 --> 01:44:29,896 MILLION MORE IN THE OFFICE OF 3171 01:44:29,896 --> 01:44:32,966 HOUSING BUDGET TODAY, WE WOULD 3172 01:44:32,966 --> 01:44:35,035 AGAIN BE INVESTING A HISTORICAL 3173 01:44:35,035 --> 01:44:37,571 AMOUNT OF MONEY INTO THE OFFICE 3174 01:44:37,571 --> 01:44:39,539 OF HOUSING. WE DON'T HAVE THAT 3175 01:44:39,539 --> 01:44:40,807 $5 MILLION. I STILL THINK IT'S A 3176 01:44:40,807 --> 01:44:42,609 REALLY GREAT INVESTMENT. AND ON 3177 01:44:42,609 --> 01:44:49,116 TOP OF THAT, THE ELASTICITY OF 3178 01:44:49,116 --> 01:44:51,318 OUR TAX ENVIRONMENT WAS SUBSUMED 3179 01:44:51,318 --> 01:44:53,320 BY THE SOCIAL HOUSING INVESTOR, 3180 01:44:53,320 --> 01:44:55,489 WHICH IS OKAY. RIGHT? SEATTLE 3181 01:44:55,489 --> 01:44:56,857 VOTERS SAID, WE WANT THESE FUNDS 3182 01:44:56,857 --> 01:44:59,526 TO BE DEDICATED TOWARDS HOUSING 3183 01:44:59,526 --> 01:45:01,395 THROUGH THE SEATTLE SOCIAL 3184 01:45:01,395 --> 01:45:03,263 HOUSING INVESTOR. AND WHAT THAT 3185 01:45:03,263 --> 01:45:05,432 ALSO MEANT IS THAT THE CITY'S 3186 01:45:05,432 --> 01:45:08,268 ABILITY TO CHANGE THOSE 3187 01:45:08,268 --> 01:45:08,769 JUMPSTART RATES CHANGE 3188 01:45:08,769 --> 01:45:10,370 DRASTICALLY. AND A CHANGE TAX 3189 01:45:10,370 --> 01:45:12,139 ENVIRONMENT, THAT'S A THAT'S A 3190 01:45:12,139 --> 01:45:13,073 PROFESSIONAL TAKE HERE AS A 3191 01:45:13,073 --> 01:45:15,709 BUDGET CHAIR, NOT ONE THAT I'M 3192 01:45:15,709 --> 01:45:16,843 TRYING TO GET RESPONSE FROM THE 3193 01:45:16,843 --> 01:45:19,046 COMMITTEE TABLE HERE. I'M JUST 3194 01:45:19,046 --> 01:45:22,349 TALKING ABOUT THE WHOLE 3195 01:45:22,349 --> 01:45:24,618 ENVIRONMENT. I SHARE THIS 3196 01:45:24,618 --> 01:45:26,787 BECAUSE WE HAVE MULTIPLE BRAIDED 3197 01:45:26,787 --> 01:45:28,288 FUNDING STREAMS FOR THE OFFICE 3198 01:45:28,288 --> 01:45:29,856 OF HOUSING. I SHARE THIS BECAUSE 3199 01:45:29,856 --> 01:45:31,491 IT TOOK US SIX YEARS, SEVEN 3200 01:45:31,491 --> 01:45:33,126 YEARS TO GET MH AYE ON THE 3201 01:45:33,126 --> 01:45:35,162 BOOKS. SO BY THE TIME WE STARTED 3202 01:45:35,162 --> 01:45:36,697 COLLECTING IT, IT WAS AT THE END 3203 01:45:36,697 --> 01:45:39,132 OF A BUILDING CYCLE. AND WE KNEW 3204 01:45:39,132 --> 01:45:41,802 THAT THAT WAS NOT ENOUGH, WHICH 3205 01:45:41,802 --> 01:45:43,570 IS WHY WE PASSED THE JUMPSTART 3206 01:45:43,570 --> 01:45:45,672 TAX, WHICH IS WHY WE INCREASED 3207 01:45:45,672 --> 01:45:47,641 THE MOST RECENT HOUSING LEVY. 3208 01:45:47,641 --> 01:45:51,445 AND SO THAT IS HOW WE GOT TO A 3209 01:45:51,445 --> 01:45:53,613 408% INCREASE FROM EVEN JUST 3210 01:45:53,613 --> 01:45:55,182 2019. THE STORY OF YOUR 3211 01:45:55,182 --> 01:45:56,350 DEPARTMENT, FOR ME, TELLS THAT 3212 01:45:56,350 --> 01:46:02,189 STORY OF A STARTUP, A SCRAPPY 3213 01:46:02,189 --> 01:46:04,758 STARTUP. IN 2017 WITH $7 MILLION 3214 01:46:04,758 --> 01:46:08,595 TO BEING A REALLY BIG COMPANY AT 3215 01:46:08,595 --> 01:46:10,697 $350 MILLION A YEAR. AND SOME OF 3216 01:46:10,697 --> 01:46:13,367 THAT WAS, YOU KNOW, INITIAL 3217 01:46:13,367 --> 01:46:15,669 STARTUP MENTALITY IS TO BE RISK 3218 01:46:15,669 --> 01:46:17,137 AVERSE, KEEP ALL OF THAT CAPITAL 3219 01:46:17,137 --> 01:46:19,740 IN THE BANK FOR THE DAY THAT IT 3220 01:46:19,740 --> 01:46:21,408 NEEDS TO EXIT QUICKLY. AND WHAT 3221 01:46:21,408 --> 01:46:23,110 I'VE BEEN IMPRESSED BY IS TO 3222 01:46:23,110 --> 01:46:25,812 SEE HOW THE DEPARTMENT HAS 3223 01:46:25,812 --> 01:46:30,550 BECOME HAS GROWN. I WOULD SAY 3224 01:46:30,550 --> 01:46:31,685 THAT YOUR STAFFING HAS NOT GROWN 3225 01:46:31,685 --> 01:46:33,120 AT THE LEVEL THAT IT MIGHT YOU 3226 01:46:33,120 --> 01:46:34,888 MIGHT NEED TO. SO HERE'S ME 3227 01:46:34,888 --> 01:46:36,323 SUGGESTING, SORRY. BUDGET 3228 01:46:36,323 --> 01:46:37,891 DIRECTOR, BUT THEY MIGHT NEED 3229 01:46:37,891 --> 01:46:41,762 MORE STAFF TO TALK THROUGH TO 3230 01:46:41,762 --> 01:46:42,395 CREATE THESE SHIP SHAPED PLANS 3231 01:46:42,395 --> 01:46:45,098 AND TO HAVE THAT CONVERSATION. 3232 01:46:45,098 --> 01:46:45,732 BECAUSE ONE THING THAT I THINK 3233 01:46:45,732 --> 01:46:46,867 IT WAS FROM THE BUDGET LAST YEAR 3234 01:46:46,867 --> 01:46:48,468 THAT I'M NOT SEEING THIS YEAR 3235 01:46:48,468 --> 01:46:52,639 IS HOW YOU ACTUALLY STACKED OUT 3236 01:46:52,639 --> 01:46:54,841 YOUR UNITS YEAR BY YEAR. BECAUSE 3237 01:46:54,841 --> 01:46:57,344 FROM MY EXPERIENCE, IT TAKES 3238 01:46:57,344 --> 01:46:59,980 FOUR MINIMUM YEARS TO SIX YEARS 3239 01:46:59,980 --> 01:47:03,350 ON AVERAGE TO GO FROM A NOFA TO 3240 01:47:03,350 --> 01:47:05,585 THE DOORS BEING OPEN. AND SO 3241 01:47:05,585 --> 01:47:06,686 BECAUSE IT TAKES SO MUCH TIME, 3242 01:47:06,686 --> 01:47:08,889 IT'S REALLY CRITICAL THAT 3243 01:47:08,889 --> 01:47:09,756 COMMUNICATION. AND SO I SAW THAT 3244 01:47:09,756 --> 01:47:11,725 SLIDE LAST YEAR. I DON'T KNOW IF 3245 01:47:11,725 --> 01:47:12,459 IT'S JUST IN A DIFFERENT 3246 01:47:12,459 --> 01:47:13,860 PRESENTATION. IF YOU HAVE THAT 3247 01:47:13,860 --> 01:47:16,263 UPDATED TODAY, I'D LOVE TO SEE 3248 01:47:16,263 --> 01:47:16,930 ANOTHER COPY BECAUSE THAT'S THE 3249 01:47:16,930 --> 01:47:19,599 TYPE OF THE WORK THAT I SEE THE 3250 01:47:19,599 --> 01:47:21,234 STAFF, YOUR DEPARTMENT NEEDING 3251 01:47:21,234 --> 01:47:23,036 TO GROW IN AND HOW TO CREATE 3252 01:47:23,036 --> 01:47:28,975 THAT BETTER ACCESS, NOT ONLY FOR 3253 01:47:28,975 --> 01:47:29,609 UNDERSTANDING THAT SEATTLEITES 3254 01:47:29,609 --> 01:47:32,145 WHO MIGHT BE STRUGGLING WITH 3255 01:47:32,145 --> 01:47:33,513 RENT TODAY, HAVE A FUTURE IN THE 3256 01:47:33,513 --> 01:47:36,817 NEAR FUTURE HERE, BUT THEN ALSO 3257 01:47:36,817 --> 01:47:38,985 GETTING TO THE POINT THAT 3258 01:47:38,985 --> 01:47:39,519 COUNCILMEMBER FOSTER WAS 3259 01:47:39,519 --> 01:47:40,554 BRINGING UP THAT YOU WERE 3260 01:47:40,554 --> 01:47:42,489 DISCUSSING AS WELL, THAT STUDIOS 3261 01:47:42,489 --> 01:47:45,025 AND ONE BEDROOMS ARE NEARLY IN 3262 01:47:45,025 --> 01:47:46,827 PLACES THE SAME COST AS MARKET 3263 01:47:46,827 --> 01:47:51,498 RATE WHAT WE'RE SEEING AND 3264 01:47:51,498 --> 01:47:52,499 COUNCILMEMBER LIN BROUGHT UP IS 3265 01:47:52,499 --> 01:47:55,302 A CASH FLOW TOOL. IT 3266 01:47:55,302 --> 01:47:56,703 DEMONSTRATES THAT THROUGHOUT THE 3267 01:47:56,703 --> 01:47:57,838 ENTIRE CITY BUDGET, WE ARE NOT 3268 01:47:57,838 --> 01:48:00,106 AT THE END OF THE ROAD. WE DO 3269 01:48:00,106 --> 01:48:02,909 HAVE OTHER TOOLS THAT EXIST LIKE 3270 01:48:02,909 --> 01:48:05,245 THIS, AND IT IS INCREDIBLY 3271 01:48:05,245 --> 01:48:06,646 IMPORTANT THAT WE TAKE THESE 3272 01:48:06,646 --> 01:48:09,616 TOOLS ONE AT A TIME, WHICH IS 3273 01:48:09,616 --> 01:48:10,150 WHY I'VE TALKED ABOUT A 3274 01:48:10,150 --> 01:48:15,522 MULTIYEAR STRATEGY TO WALK DOWN 3275 01:48:15,522 --> 01:48:16,990 THE HILL OF STRUCTURAL BUDGET 3276 01:48:16,990 --> 01:48:18,024 DEFICIT, RATHER THAN STEPPING 3277 01:48:18,024 --> 01:48:20,560 OFF A CLIFF. THIS COMES BACK TO 3278 01:48:20,560 --> 01:48:23,497 MY MENTALITY THAT IF WE MAKE 3279 01:48:23,497 --> 01:48:26,032 SMART CHOICES CAREFULLY AND 3280 01:48:26,032 --> 01:48:29,069 SLOWLY OVER A NUMBER OF YEARS, 3281 01:48:29,069 --> 01:48:29,703 WE DON'T UNINTENTIONALLY CUT 3282 01:48:29,703 --> 01:48:31,972 PROGRAMS THAT WE MAY ACTUALLY 3283 01:48:31,972 --> 01:48:34,107 REALLY NEED, OR WE DON'T SHRINK 3284 01:48:34,107 --> 01:48:36,676 PROGRAMS BEYOND WHAT THEY NEED. 3285 01:48:36,676 --> 01:48:38,778 AND SO I, I DO APPRECIATE THAT 3286 01:48:38,778 --> 01:48:39,779 WE ARE USING THIS TOOL THIS 3287 01:48:39,779 --> 01:48:44,150 YEAR. IT IS A TOOL THAT WE HAVE 3288 01:48:44,150 --> 01:48:45,352 HELD OFF ON USING. AND I JUST 3289 01:48:45,352 --> 01:48:46,920 WANT TO THANK YOU FOR BEING ABLE 3290 01:48:46,920 --> 01:48:49,155 TO CREATE THAT STABILITY THAT WE 3291 01:48:49,155 --> 01:48:52,425 NEED WHEN WE'RE USING THIS TOOL. 3292 01:48:52,425 --> 01:48:53,560 IF YOU ARE A NEW DEPARTMENT 3293 01:48:53,560 --> 01:48:55,395 DIRECTOR THAT HAD NOT BEEN HERE 3294 01:48:55,395 --> 01:48:57,264 AND THAT WE DIDN'T COME TO 3295 01:48:57,264 --> 01:48:58,632 ALREADY, I WOULD HAVE A LOT MORE 3296 01:48:58,632 --> 01:49:00,734 FEAR AND RISK THAT THIS STEP 3297 01:49:00,734 --> 01:49:05,906 WOULD BE DONE INCORRECTLY. SO I 3298 01:49:05,906 --> 01:49:07,908 GUESS WE DON'T HAVE ANY 3299 01:49:07,908 --> 01:49:10,911 QUESTIONS TODAY. I WOULD SAY IN 3300 01:49:10,911 --> 01:49:12,579 YOUR UPCOMING NOFAS AND IN YOUR 3301 01:49:12,579 --> 01:49:14,714 UPCOMING FUNDING, ARE YOU STILL 3302 01:49:14,714 --> 01:49:16,016 FUNDING ONE BEDROOM AND STUDIO, 3303 01:49:16,016 --> 01:49:18,852 OR HAVE YOU CHANGED ENTIRELY TO 3304 01:49:18,852 --> 01:49:23,456 FAMILY SIZED UNITS AT THIS TIME? 3305 01:49:23,456 --> 01:49:24,858 -- WE'VE BEEN TALKING QUITE A 3306 01:49:24,858 --> 01:49:26,927 LOT ABOUT THIS THIS YEAR 3307 01:49:26,927 --> 01:49:28,695 ALREADY. THE TEAM WILL BE 3308 01:49:28,695 --> 01:49:31,331 LOOKING REALLY CLOSELY AT 3309 01:49:31,331 --> 01:49:33,667 APPLICATIONS THAT ARE SUBMITTED. 3310 01:49:33,667 --> 01:49:37,270 WE DON'T WANT TO NECESSARILY 3311 01:49:37,270 --> 01:49:40,206 SET UP RULES AND INCENTIVES THAT 3312 01:49:40,206 --> 01:49:43,643 MAKE PROJECTS IMPRACTICAL OR 3313 01:49:43,643 --> 01:49:45,912 INFEASIBLE, AND WE WANT THESE 3314 01:49:45,912 --> 01:49:47,981 PROJECTS TO BE DEEPLY 3315 01:49:47,981 --> 01:49:49,683 AFFORDABLE, BELOW MARKET AND 3316 01:49:49,683 --> 01:49:50,150 COMPETITIVE IN THEIR 3317 01:49:50,150 --> 01:49:52,285 NEIGHBORHOODS. SO AS WE ARE 3318 01:49:52,285 --> 01:49:54,321 EXAMINING PRO FORMAS AND 3319 01:49:54,321 --> 01:49:55,522 PROJECTS THAT ARE SUBMITTED THIS 3320 01:49:55,522 --> 01:49:58,925 YEAR, WE WILL BE VERY CLOSELY 3321 01:49:58,925 --> 01:50:03,563 SCRUTINIZING ANY STUDIOS OR 3322 01:50:03,563 --> 01:50:05,231 SMALL APARTMENTS AND THE LEVELS 3323 01:50:05,231 --> 01:50:05,799 OF THE RENTS THAT THEY ARE 3324 01:50:05,799 --> 01:50:06,533 BRINGING FORWARD. IT'S NOT TO 3325 01:50:06,533 --> 01:50:08,601 SAY THAT WE DON'T NEED ANY 3326 01:50:08,601 --> 01:50:09,769 STUDIO APARTMENTS, IT'S THAT 3327 01:50:09,769 --> 01:50:11,204 THEY HAVE TO BE PRICED RIGHT IN 3328 01:50:11,204 --> 01:50:12,839 THIS CURRENT MARKET, 3329 01:50:12,839 --> 01:50:15,976 PARTICULARLY BY SUBMARKET, AND 3330 01:50:15,976 --> 01:50:16,876 WE REALLY NEED FAMILY SIZED 3331 01:50:16,876 --> 01:50:21,781 HOMES. SO THERE'S ALWAYS A TRADE 3332 01:50:21,781 --> 01:50:22,983 OFF FOCUSING ON THE NUMBER OF 3333 01:50:22,983 --> 01:50:24,851 PEOPLE THAT WE SERVE, RATHER 3334 01:50:24,851 --> 01:50:26,987 THAN THE NUMBER OF UNITS THAT WE 3335 01:50:26,987 --> 01:50:28,855 SERVE. WE ARE ABLE TO STRETCH 3336 01:50:28,855 --> 01:50:29,522 OUR INVESTMENTS FURTHER, AND WE 3337 01:50:29,522 --> 01:50:31,124 ARE TRYING TO PUSH MORE TOWARD 3338 01:50:31,124 --> 01:50:33,360 THOSE FAMILY SIZED HOMES. SO 3339 01:50:33,360 --> 01:50:35,895 I'M REALLY EXCITED TO SEE HOW 3340 01:50:35,895 --> 01:50:37,263 OUR INVESTMENT DECISIONS ARE 3341 01:50:37,263 --> 01:50:38,365 MADE THIS YEAR. WE'LL BE 3342 01:50:38,365 --> 01:50:39,733 WATCHING THAT REALLY CLOSELY AND 3343 01:50:39,733 --> 01:50:40,800 MAKING SURE THAT IT'S INFORMED 3344 01:50:40,800 --> 01:50:42,335 BY THE DATA THAT WE HAVE RIGHT 3345 01:50:42,335 --> 01:50:42,535 NOW. 3346 01:50:42,535 --> 01:50:44,070 -- THANK YOU. THIS ALL STEMS OFF 3347 01:50:44,070 --> 01:50:45,372 OF THE POLICY QUESTIONS THAT 3348 01:50:45,372 --> 01:50:46,906 WERE ASKED EARLIER. I WON'T ASK 3349 01:50:46,906 --> 01:50:50,610 THEM JUST TO DOUBLE, DOUBLE DOWN 3350 01:50:50,610 --> 01:50:52,946 ON. WE NEED TO REALLY LOOK AT 3351 01:50:52,946 --> 01:50:55,649 OUR OPERATING COSTS AS THIS. AT 3352 01:50:55,649 --> 01:50:57,117 THE SAME TIME THAT WE'RE 3353 01:50:57,117 --> 01:50:58,852 LOOKING AT WHAT ARE WE FUNDING 3354 01:50:58,852 --> 01:51:00,120 TO BUILD? WHAT ARE THE 3355 01:51:00,120 --> 01:51:01,654 SATURATION LEVELS THROUGHOUT THE 3356 01:51:01,654 --> 01:51:03,556 MARKET WHERE WE ALREADY SEEING 3357 01:51:03,556 --> 01:51:05,592 AN OVERSUPPLY OF CERTAIN UNITS 3358 01:51:05,592 --> 01:51:08,194 IN THOSE RENTS COMING DOWN? 3359 01:51:08,194 --> 01:51:10,430 THESE ARE THIS IS ALL REALLY 3360 01:51:10,430 --> 01:51:11,831 CRITICAL INFORMATION BECAUSE 3361 01:51:11,831 --> 01:51:13,733 OVER THE COURSE OF THESE LAST 3362 01:51:13,733 --> 01:51:15,301 TEN YEARS, YOU'VE GONE FROM A 3363 01:51:15,301 --> 01:51:17,170 STARTUP TO A FORTUNE 500 3364 01:51:17,170 --> 01:51:19,472 COMPANY, WHICH WE ARE ALL GLAD 3365 01:51:19,472 --> 01:51:22,942 FOR. AND THAT WE ARE AT A POINT 3366 01:51:22,942 --> 01:51:24,344 WHERE THE INVESTMENTS THAT WE'VE 3367 01:51:24,344 --> 01:51:25,845 MADE ARE STARTING TO CATCH UP. 3368 01:51:25,845 --> 01:51:27,213 WE'RE NOT QUITE THERE, BUT IT 3369 01:51:27,213 --> 01:51:30,750 IS A TIME FOR REFINEMENT AND FOR 3370 01:51:30,750 --> 01:51:32,519 PIVOTING JUST TO ENSURE THAT WE 3371 01:51:32,519 --> 01:51:33,620 ARE NOT STILL TRYING TO SERVE 3372 01:51:33,620 --> 01:51:34,888 THE SAME CLIENT THAT WE WERE 3373 01:51:34,888 --> 01:51:36,222 TRYING TO SERVE SIX YEARS AGO, 3374 01:51:36,222 --> 01:51:38,558 WHERE THE ENVIRONMENT WAS VERY 3375 01:51:38,558 --> 01:51:39,392 DIFFERENT. AND COLLEAGUES, I 3376 01:51:39,392 --> 01:51:41,261 WILL JUST SAY, IF WE DID NOT USE 3377 01:51:41,261 --> 01:51:43,163 THIS BUDGET TOOL, THIS CASH 3378 01:51:43,163 --> 01:51:45,231 MANAGEMENT, THIS CASH FLOW 3379 01:51:45,231 --> 01:51:48,101 MANAGEMENT TOOL, WE WOULD HAVE 3380 01:51:48,101 --> 01:51:49,402 TO CHOOSE. WE WOULD THERE WOULD 3381 01:51:49,402 --> 01:51:50,637 BE MORE EMPLOYEES THAT WOULD BE 3382 01:51:50,637 --> 01:51:52,105 LAID OFF THIS YEAR. THERE WOULD 3383 01:51:52,105 --> 01:51:55,008 BE MORE PROGRAMS THAT WOULD BE 3384 01:51:55,008 --> 01:51:58,344 CUT. THERE WOULD BE MORE ONE 3385 01:51:58,344 --> 01:52:00,380 TIME FUNDING ITEMS THAT WERE NOT 3386 01:52:00,380 --> 01:52:02,582 REFUNDED. THERE WOULD BE THE 3387 01:52:02,582 --> 01:52:03,683 THINGS THAT WERE ONE TIME AND 3388 01:52:03,683 --> 01:52:04,951 THAT ARE NOW ONGOING, THAT WOULD 3389 01:52:04,951 --> 01:52:08,521 NOT BE FUNDED. IT REALLY COMES 3390 01:52:08,521 --> 01:52:09,389 AS I'M LOOKING THROUGH THIS 3391 01:52:09,389 --> 01:52:12,058 ENTIRE BUDGET. IT COMES DOWN TO 3392 01:52:12,058 --> 01:52:13,526 ENSURING THAT WE KEEP OUR 3393 01:52:13,526 --> 01:52:18,031 EMPLOYEES SO THAT THEY CAN KEEP 3394 01:52:18,031 --> 01:52:18,598 PAYING THEIR RENT AND THEIR 3395 01:52:18,598 --> 01:52:21,601 MORTGAGE AND THE OTHER COSTS IN 3396 01:52:21,601 --> 01:52:22,836 THEIR LIVES. BECAUSE OUR OTHER 3397 01:52:22,836 --> 01:52:24,838 CHOICE IS TO LEAVE THE CASH IN 3398 01:52:24,838 --> 01:52:26,973 THIS CASH FUND, OR WE CAN MAKE 3399 01:52:26,973 --> 01:52:28,208 SURE OUR EMPLOYEES ARE STILL 3400 01:52:28,208 --> 01:52:29,409 ABLE TO PAY THEIR MORTGAGE AND 3401 01:52:29,409 --> 01:52:32,078 RENT. AND FOR ME, THAT'S A GOOD 3402 01:52:32,078 --> 01:52:33,379 USE OF HOUSING DOLLARS. THANK 3403 01:52:33,379 --> 01:52:35,648 YOU. WITH THAT, COUNCILMEMBER 3404 01:52:35,648 --> 01:52:39,486 RIVERA SHORT AND THEN OVER TO 3405 01:52:39,486 --> 01:52:40,086 COUNCILMEMBER FOSTER TO CLOSE 3406 01:52:40,086 --> 01:52:41,421 THIS OUT. 3407 01:52:41,421 --> 01:52:43,389 -- THANK YOU CHAIR. I JUST 3408 01:52:43,389 --> 01:52:46,426 REALLY WANTED TO I APPRECIATE 3409 01:52:46,426 --> 01:52:46,960 COUNCILMEMBER KETTLE YOU 3410 01:52:46,960 --> 01:52:48,394 BRINGING UP THE POINT ABOUT WE 3411 01:52:48,394 --> 01:52:50,730 SHOULDN'T BE OPERATING IN SILOS 3412 01:52:50,730 --> 01:52:53,399 IS BASICALLY THE BOTTOM LINE. 3413 01:52:53,399 --> 01:52:54,801 AND AS THE OFFICE OF HOUSING IS 3414 01:52:54,801 --> 01:52:57,003 MOVING FORWARD WITH THEIR 3415 01:52:57,003 --> 01:52:59,105 INVESTMENTS, ENSURING THAT 3416 01:52:59,105 --> 01:53:01,875 THEIR, YOU KNOW, LOOKING AT THE 3417 01:53:01,875 --> 01:53:03,409 ENTIRE ECOSYSTEM, WHAT'S SHE 3418 01:53:03,409 --> 01:53:05,145 DOING? WHAT'S THE SOCIAL 3419 01:53:05,145 --> 01:53:07,147 HOUSING PDA DOING AND MAKING 3420 01:53:07,147 --> 01:53:07,747 SURE WE'RE NOT DUPLICATING 3421 01:53:07,747 --> 01:53:09,916 EFFORTS BECAUSE COUNCILMEMBER 3422 01:53:09,916 --> 01:53:11,284 KETTLE, I UNDERSTOOD YOUR POINT 3423 01:53:11,284 --> 01:53:15,088 TO BE IF SHA IS DOING SOMETHING 3424 01:53:15,088 --> 01:53:17,524 OR SOCIAL HOUSING PDA LET'S NOT 3425 01:53:17,524 --> 01:53:20,693 US DO THE SAME. WE CAN TWEAK OUR 3426 01:53:20,693 --> 01:53:22,228 OFFERINGS TO MAKE SURE THAT 3427 01:53:22,228 --> 01:53:24,531 WE'RE ABLE TO PROVIDE SOMETHING 3428 01:53:24,531 --> 01:53:26,633 THEY CAN'T. SO TO ME, IT'S A 3429 01:53:26,633 --> 01:53:28,001 COORDINATION PIECE. WE KNOW WE 3430 01:53:28,001 --> 01:53:30,670 DON'T HAVE AUTHORITY OVER 3431 01:53:30,670 --> 01:53:32,906 EITHER THE SOCIAL HOUSING PDA OR 3432 01:53:32,906 --> 01:53:34,240 SHA, BUT WE CAN PARTNER WITH 3433 01:53:34,240 --> 01:53:37,510 THEM AND MAKE SURE THAT WHAT 3434 01:53:37,510 --> 01:53:39,379 WE'RE COLLECTIVELY DOING IS WHAT 3435 01:53:39,379 --> 01:53:40,747 THE WHAT THE CITY NEEDS. AND I 3436 01:53:40,747 --> 01:53:42,315 THINK THAT THAT'S REALLY 3437 01:53:42,315 --> 01:53:44,717 IMPORTANT. AND IT GOES TO WE 3438 01:53:44,717 --> 01:53:46,853 OFTEN ARE OPERATING IN SILOS. 3439 01:53:46,853 --> 01:53:48,721 LET'S NOT DO THAT. AND LET'S 3440 01:53:48,721 --> 01:53:51,224 MAKE SURE WE'RE PARTNERING. AND 3441 01:53:51,224 --> 01:53:54,060 FOR THAT MATTER, WE ALSO ARE 3442 01:53:54,060 --> 01:53:54,661 LOOKING TOWARD PUBLIC PRIVATE 3443 01:53:54,661 --> 01:53:57,130 PARTNERSHIPS BECAUSE THOSE 3444 01:53:57,130 --> 01:53:59,432 ACTUALLY ALSO HELP US LEVERAGE 3445 01:53:59,432 --> 01:54:01,100 OUR MONEY. AND SO WE SHOULD BE 3446 01:54:01,100 --> 01:54:03,837 LOOKING AT ALL OF IT. SO THANK 3447 01:54:03,837 --> 01:54:04,871 YOU, COUNCILMEMBER KETTLE, FOR 3448 01:54:04,871 --> 01:54:06,739 BRINGING IT UP. I THOUGHT THIS 3449 01:54:06,739 --> 01:54:07,841 WAS A REALLY IMPORTANT POINT, 3450 01:54:07,841 --> 01:54:10,310 AND I'M NOT SURE HOW WE ARE. 3451 01:54:10,310 --> 01:54:12,845 WE'D LOVE TO HEAR MORE 3452 01:54:12,845 --> 01:54:13,479 INFORMATION ABOUT HOW THE OFFICE 3453 01:54:13,479 --> 01:54:17,483 OF HOUSING IS SPEAKING TO THESE 3454 01:54:17,483 --> 01:54:18,551 OTHER ENTITIES. AND EVEN IN THE 3455 01:54:18,551 --> 01:54:20,153 PRIVATE SECTOR, TO MAKE SURE 3456 01:54:20,153 --> 01:54:22,989 THAT WE ARE OPERATING WITHIN 3457 01:54:22,989 --> 01:54:24,324 THIS ECOSYSTEM IN A ROBUST WAY 3458 01:54:24,324 --> 01:54:26,993 AND NOT SILOED. AND YOU MAY BE 3459 01:54:26,993 --> 01:54:28,595 DOING THAT. WE JUST DON'T KNOW 3460 01:54:28,595 --> 01:54:29,896 ABOUT IT. THANK YOU. THANK YOU, 3461 01:54:29,896 --> 01:54:31,798 CHAIR. 3462 01:54:31,798 --> 01:54:33,066 -- THANK YOU. ANYTHING ANY LAST 3463 01:54:33,066 --> 01:54:33,800 COMMENTS FROM THE COMMITTEE 3464 01:54:33,800 --> 01:54:35,201 TABLE? THEN I'M GOING TO TURN 3465 01:54:35,201 --> 01:54:35,835 IT OVER TO COUNCILMEMBER FOSTER 3466 01:54:35,835 --> 01:54:36,569 FOR LAST WORD. ANYTHING YOU'D 3467 01:54:36,569 --> 01:54:39,539 LIKE TO SHARE? THIS IS YOUR LAST 3468 01:54:39,539 --> 01:54:43,209 CHANCE TO MAKE A PITCH YES, 3469 01:54:43,209 --> 01:54:45,211 MA'AM. ALL RIGHT. COUNCILMEMBER 3470 01:54:45,211 --> 01:54:46,412 FOSTER, TAKE US HOME. 3471 01:54:46,412 --> 01:54:47,046 -- ALL RIGHTY. THANK YOU SO 3472 01:54:47,046 --> 01:54:48,248 MUCH. WE'RE STILL GOING TO BE 3473 01:54:48,248 --> 01:54:49,148 RIDING ON THE TRAIN FOR A LITTLE 3474 01:54:49,148 --> 01:54:50,350 WHILE BEFORE WE GET HOME. 3475 01:54:50,350 --> 01:54:51,217 BECAUSE, COLLEAGUES, YOU BROUGHT 3476 01:54:51,217 --> 01:54:52,852 UP SOME GREAT POINTS THAT I WANT 3477 01:54:52,852 --> 01:54:54,320 TO JUST TOUCH ON. SO THANK YOU 3478 01:54:54,320 --> 01:54:58,224 SO MUCH, CHAIR. WHAT A GREAT 3479 01:54:58,224 --> 01:55:00,293 DISCUSSION TODAY. SO THANK YOU 3480 01:55:00,293 --> 01:55:01,327 SO MUCH TO ALL MY COLLEAGUES 3481 01:55:01,327 --> 01:55:04,163 HERE. AND AGAIN, TO THE TABLE 3482 01:55:04,163 --> 01:55:06,099 FOR SUCH A ROBUST DISCUSSION, 3483 01:55:06,099 --> 01:55:06,599 SOMETHING THAT ANOTHER 3484 01:55:06,599 --> 01:55:07,734 COUNCILMEMBER SAID JUST REMINDED 3485 01:55:07,734 --> 01:55:08,434 ME OF SOMETHING I WANTED TO TALK 3486 01:55:08,434 --> 01:55:09,903 ABOUT IN TERMS OF HOME 3487 01:55:09,903 --> 01:55:12,138 OWNERSHIP, WHICH YOU ALL KNOW, 3488 01:55:12,138 --> 01:55:13,106 BECAUSE I TALK ABOUT THIS ALL 3489 01:55:13,106 --> 01:55:14,440 THE TIME IN COMMITTEE. I CARE 3490 01:55:14,440 --> 01:55:15,875 DEEPLY ABOUT I OWN MY HOME 3491 01:55:15,875 --> 01:55:18,678 BECAUSE OF CITY INVESTMENTS IN 3492 01:55:18,678 --> 01:55:20,046 HOME OWNERSHIP. AND SO I'M JUST 3493 01:55:20,046 --> 01:55:21,748 LIVING PROOF OF HOW IMPORTANT 3494 01:55:21,748 --> 01:55:23,616 THAT IS. AND I THINK IN THE 3495 01:55:23,616 --> 01:55:24,751 COURSE OF THAT CONVERSATION, WE 3496 01:55:24,751 --> 01:55:26,286 STARTED TO TALK ABOUT SOME OF 3497 01:55:26,286 --> 01:55:27,921 THE ONE TIME ADS. AND SO 3498 01:55:27,921 --> 01:55:29,222 THERE'S SORT OF THERE'S TWO 3499 01:55:29,222 --> 01:55:31,491 THINGS I WANT TO BRING UP HERE. 3500 01:55:31,491 --> 01:55:33,126 ONE IS JUST A QUESTION THAT HAD 3501 01:55:33,126 --> 01:55:34,060 BEEN FLOATING AROUND IN MY HEAD 3502 01:55:34,060 --> 01:55:36,629 FOR THE LAST COUPLE OF DAYS, AS 3503 01:55:36,629 --> 01:55:37,163 WE'VE HAD SOME COUNCIL 3504 01:55:37,163 --> 01:55:38,097 DISCUSSION. I THINK THIS IS 3505 01:55:38,097 --> 01:55:39,699 PROBABLY APPROPRIATE FOR 3506 01:55:39,699 --> 01:55:42,702 DIRECTOR PANUCCI. DO WE KNOW, 3507 01:55:42,702 --> 01:55:44,637 YOU KNOW, IF WE IF THOSE ONE 3508 01:55:44,637 --> 01:55:47,407 TIME ADS HAD BEEN INCORPORATED 3509 01:55:47,407 --> 01:55:50,376 INTO THE BASELINE BUDGET, DO WE 3510 01:55:50,376 --> 01:55:52,679 KNOW WHAT WE WOULD BE LOOKING AT 3511 01:55:52,679 --> 01:55:54,948 CUTTING? BECAUSE OBVIOUSLY WE 3512 01:55:54,948 --> 01:55:56,716 HAD THIS $175 MILLION DEFICIT 3513 01:55:56,716 --> 01:55:57,383 WHERE WE'RE DEALING WITH THAT 3514 01:55:57,383 --> 01:55:58,584 THROUGH A LOT OF REALLY 3515 01:55:58,584 --> 01:55:59,452 DIFFICULT DECISIONS. AS YOU, AS 3516 01:55:59,452 --> 01:56:01,054 YOU SAID, DIRECTOR PANUCCI, A 3517 01:56:01,054 --> 01:56:03,589 FEW TIMES. BUT IF THOSE ONE TIME 3518 01:56:03,589 --> 01:56:05,391 ADS HAD BEEN ONGOING, DO WE KNOW 3519 01:56:05,391 --> 01:56:06,426 WHAT WE'D BE TALKING ABOUT? 3520 01:56:06,426 --> 01:56:08,661 CUTTING FROM THE BUDGET? 3521 01:56:08,661 --> 01:56:09,195 -- YEAH, THANKS FOR THAT 3522 01:56:09,195 --> 01:56:11,898 QUESTION. COUNCILMEMBER FOSTER 3523 01:56:11,898 --> 01:56:12,932 IN THE GENERAL FUND, THERE WERE 3524 01:56:12,932 --> 01:56:17,070 ABOUT $53 MILLION OF ONE TIME 3525 01:56:17,070 --> 01:56:18,638 ADS INCLUDED IN THE 2026 BUDGET. 3526 01:56:18,638 --> 01:56:20,473 SO THAT WAS $53 MILLION. THAT 3527 01:56:20,473 --> 01:56:25,311 WAS NOT CALCULATED WHEN WE WERE 3528 01:56:25,311 --> 01:56:25,845 TALKING ABOUT 150 TO $175 3529 01:56:25,845 --> 01:56:28,881 MILLION PROJECTED DEFICIT, 3530 01:56:28,881 --> 01:56:30,350 SOMEWHERE BETWEEN 10 AND $15 3531 01:56:30,350 --> 01:56:32,218 MILLION OF THOSE ONE TIME ADS 3532 01:56:32,218 --> 01:56:35,388 ARE MADE ONGOING IN THE 27 3533 01:56:35,388 --> 01:56:37,924 PROPOSED BUDGET. AND THEN IN THE 3534 01:56:37,924 --> 01:56:39,158 JUMPSTART FUND. AND I'M JUST 3535 01:56:39,158 --> 01:56:40,126 GOING TO RAISE THIS AS WELL, 3536 01:56:40,126 --> 01:56:42,495 BECAUSE OF THE SORT OF 3537 01:56:42,495 --> 01:56:44,097 INTERMINGLING OF THE THESE FUND 3538 01:56:44,097 --> 01:56:48,601 SOURCES. THERE WAS ANOTHER ABOUT 3539 01:56:48,601 --> 01:56:53,006 $25 MILLION OF ONE TIME ADS. SO 3540 01:56:53,006 --> 01:56:53,639 COLLECTIVELY, AROUND $78 MILLION 3541 01:56:53,639 --> 01:56:58,144 OF ONE TIME EXPENDITURES 3542 01:56:58,144 --> 01:56:59,946 INCLUDED IN THE 2026 BUDGET THAT 3543 01:56:59,946 --> 01:57:00,480 WHEN LOOKING AT PROJECTED 3544 01:57:00,480 --> 01:57:01,881 ONGOING DEFICITS, WERE NOT 3545 01:57:01,881 --> 01:57:03,583 CALCULATED 3546 01:57:03,583 --> 01:57:05,218 -- SO I DID I HEAR 75 MILLION. 3547 01:57:05,218 --> 01:57:07,553 IS THAT WHAT I GOT? 3548 01:57:07,553 --> 01:57:09,722 -- YEAH, IT'S 53 PLUS 25. SO 3549 01:57:09,722 --> 01:57:13,960 ABOUT 78 TO BE. A LITTLE MORE 3550 01:57:13,960 --> 01:57:14,227 PRECISE. 3551 01:57:14,227 --> 01:57:15,461 -- I'LL TAKE IT. DIRECTOR. 3552 01:57:15,461 --> 01:57:17,530 THANK YOU FOR THAT. I APPRECIATE 3553 01:57:17,530 --> 01:57:18,765 THAT CLARIFICATION. IT'S JUST 3554 01:57:18,765 --> 01:57:19,399 BEEN SOMETHING I WAS THINKING 3555 01:57:19,399 --> 01:57:21,567 ABOUT THROUGH SOME OF OUR 3556 01:57:21,567 --> 01:57:22,869 PREVIOUS CONVERSATIONS. AND THEN 3557 01:57:22,869 --> 01:57:24,103 LOOKING AT THE SLIDE THAT WE 3558 01:57:24,103 --> 01:57:27,006 HAVE ON THE SCREEN. I, I WANT TO 3559 01:57:27,006 --> 01:57:29,675 PERHAPS STATE THE OBVIOUS, WHICH 3560 01:57:29,675 --> 01:57:31,210 IS THE ZERO IN GENERAL FUND THAT 3561 01:57:31,210 --> 01:57:33,913 THE OFFICE OF HOUSING RECEIVES. 3562 01:57:33,913 --> 01:57:35,615 AND I THERE'S A COUPLE OF POINTS 3563 01:57:35,615 --> 01:57:37,050 I THINK I WANT TO MAKE HERE JUST 3564 01:57:37,050 --> 01:57:39,085 BECAUSE WE WERE TALKING ABOUT 3565 01:57:39,085 --> 01:57:41,521 THE IMPACTS OF AFFORDABILITY, 3566 01:57:41,521 --> 01:57:44,257 THE IMPACTS TO TO SEATTLE 3567 01:57:44,257 --> 01:57:46,125 RESIDENTS AND TAXPAYERS IS ARE 3568 01:57:46,125 --> 01:57:46,692 THERE HOW MANY DEPARTMENTS 3569 01:57:46,692 --> 01:57:49,629 RECEIVE $0 FROM THE GENERAL FUND 3570 01:57:49,629 --> 01:57:52,799 -- THERE ARE TWO. THE OFFICE OF 3571 01:57:52,799 --> 01:57:54,133 ARTS AND CULTURES AND THE OFFICE 3572 01:57:54,133 --> 01:57:55,802 OF HOUSING. AND JUST FOR ANYONE 3573 01:57:55,802 --> 01:57:56,502 WHO REALLY LOVES TO READ THE 3574 01:57:56,502 --> 01:57:58,070 BUDGET BOOK, THERE ARE SOME 3575 01:57:58,070 --> 01:58:00,073 DEPARTMENTS THAT DON'T RECEIVE 3576 01:58:00,073 --> 01:58:00,506 DIRECT GENERAL FUND 3577 01:58:00,506 --> 01:58:02,008 APPROPRIATION, SO IT WILL APPEAR 3578 01:58:02,008 --> 01:58:02,608 LIKE THE OFFICE OF LABOR 3579 01:58:02,608 --> 01:58:03,776 STANDARDS BECAUSE THEY HAVE 3580 01:58:03,776 --> 01:58:06,045 THEIR OWN FUND. THEIR MONEY 3581 01:58:06,045 --> 01:58:07,280 FLOWS THROUGH FINANCE GENERAL. 3582 01:58:07,280 --> 01:58:08,581 AND THEN TO THE. SO I JUST WANT 3583 01:58:08,581 --> 01:58:10,349 TO FLAG IF ANYONE WAS LOOKING AT 3584 01:58:10,349 --> 01:58:11,250 THEIR BUDGET, IT WOULD LOOK LIKE 3585 01:58:11,250 --> 01:58:12,418 THEY DON'T GET GENERAL FUND, BUT 3586 01:58:12,418 --> 01:58:13,653 THEY ARE PRIMARILY SUPPORTED BY 3587 01:58:13,653 --> 01:58:15,688 THE GENERAL FUND. SO JUST TWO 3588 01:58:15,688 --> 01:58:17,857 OFFICE OF ARTS AND CULTURE AND 3589 01:58:17,857 --> 01:58:20,026 THE OFFICE OF HOUSING. 3590 01:58:20,026 --> 01:58:22,462 -- I HAVE TO SAY, I FEEL 3591 01:58:22,462 --> 01:58:23,095 DISPROPORTIONATELY REPRESENTED 3592 01:58:23,095 --> 01:58:23,429 THERE BECAUSE 3593 01:58:23,429 --> 01:58:23,763 -- [LAUGHTER] 3594 01:58:23,763 --> 01:58:25,364 -- BOTH OF THOSE ARE IN ARE IN 3595 01:58:25,364 --> 01:58:26,933 MY COMMITTEE, BUT I WON'T I 3596 01:58:26,933 --> 01:58:28,367 WON'T TAKE THAT PERSONALLY, BUT 3597 01:58:28,367 --> 01:58:30,169 I THINK IT'S A HELPFUL 3598 01:58:30,169 --> 01:58:31,537 CLARIFICATION, AND I APPRECIATE 3599 01:58:31,537 --> 01:58:33,039 MY COLLEAGUES BRINGING UP THE 3600 01:58:33,039 --> 01:58:35,074 IMPACT TO, TO, TO SEATTLE 3601 01:58:35,074 --> 01:58:37,443 RESIDENTS AND HOMEOWNERS. BUT I 3602 01:58:37,443 --> 01:58:39,212 KNOW OBVIOUSLY, WE HAVE A 3603 01:58:39,212 --> 01:58:40,880 HISTORIC HOUSING LEVY THAT'S 3604 01:58:40,880 --> 01:58:42,048 REALLY IMPORTANT. BUT THERE WAS 3605 01:58:42,048 --> 01:58:43,216 JUST SOME POINTS AROUND 3606 01:58:43,216 --> 01:58:44,951 TAXPAYERS THAT I WANTED TO ASK 3607 01:58:44,951 --> 01:58:47,920 YOU TO CLARIFY. WHEN IT COMES TO 3608 01:58:47,920 --> 01:58:49,455 JUMP START AND WHEN IT COMES TO 3609 01:58:49,455 --> 01:58:51,157 THE SEATTLE SOCIAL HOUSING 3610 01:58:51,157 --> 01:58:52,225 DEVELOPER, IN TERMS OF WHO IT IS 3611 01:58:52,225 --> 01:58:54,193 THAT IS PAYING INTO THOSE. SO 3612 01:58:54,193 --> 01:58:54,827 CAN I ASK AND MAYBE THIS IS, 3613 01:58:54,827 --> 01:58:58,364 AGAIN, FOR DIRECTOR PANUCCI THE 3614 01:58:58,364 --> 01:58:59,699 HOW THOSE ARE STRUCTURED. I JUST 3615 01:58:59,699 --> 01:59:00,933 WANT TO KEEP THIS FOREFRONT. I 3616 01:59:00,933 --> 01:59:03,136 KNOW WE KNOW THIS HERE AT THE 3617 01:59:03,136 --> 01:59:05,071 DAIS, BUT FOR ANYBODY WHO'S IN 3618 01:59:05,071 --> 01:59:06,305 THE VIEWING PUBLIC THAT'S 3619 01:59:06,305 --> 01:59:09,876 WATCHING TO MAKE THAT 3620 01:59:09,876 --> 01:59:10,877 DISTINCTION. 3621 01:59:10,877 --> 01:59:14,547 -- I ACTUALLY CAN'T OFF THE TOP 3622 01:59:14,547 --> 01:59:15,148 OF MY HEAD, SPEAK DIRECTLY TO 3623 01:59:15,148 --> 01:59:18,084 THE THE DISTINCTIONS. THERE ARE 3624 01:59:18,084 --> 01:59:20,720 DIFFERENT THRESHOLDS FOR WHO 3625 01:59:20,720 --> 01:59:22,488 PAYS INTO THE JUMPSTART TAX AND 3626 01:59:22,488 --> 01:59:24,257 FOR THE SOCIAL HOUSING 3627 01:59:24,257 --> 01:59:26,092 DEVELOPER, IT IS THE THE HIGHER 3628 01:59:26,092 --> 01:59:28,427 THRESHOLD. SO COMPANIES WHO EARN 3629 01:59:28,427 --> 01:59:31,898 MORE OR OR EARN MORE MONEY. BUT 3630 01:59:31,898 --> 01:59:33,132 I DON'T HAVE THAT THRESHOLD OFF 3631 01:59:33,132 --> 01:59:34,901 THE TOP OF MY HEAD. 3632 01:59:34,901 --> 01:59:36,402 -- THAT'S OKAY. I KNOW WE'RE 3633 01:59:36,402 --> 01:59:37,770 HERE TO TALK ABOUT OFFICE OF 3634 01:59:37,770 --> 01:59:39,772 HOUSING AND THAT OBVIOUSLY THE 3635 01:59:39,772 --> 01:59:40,840 SOCIAL HOUSING DEVELOPER TAX 3636 01:59:40,840 --> 01:59:42,175 DOES NOT COME INTO THE OFFICE OF 3637 01:59:42,175 --> 01:59:45,044 HOUSING, BUT I THINK IT'S 5% ON 3638 01:59:45,044 --> 01:59:46,746 INCOMES OR WAGES ABOVE $1 3639 01:59:46,746 --> 01:59:48,581 MILLION, IF I REMEMBER 3640 01:59:48,581 --> 01:59:49,682 CORRECTLY. AND I KNOW THERE'S 3641 01:59:49,682 --> 01:59:50,616 GRADATION WITH JUMPSTART, BUT I 3642 01:59:50,616 --> 01:59:51,517 JUST WANTED TO BRING THAT 3643 01:59:51,517 --> 01:59:52,652 DISTINCTION AS WE'RE TALKING 3644 01:59:52,652 --> 01:59:54,954 ABOUT SORT OF THE TAXPAYER AND 3645 01:59:54,954 --> 01:59:57,490 IMPACTS. OH, WERE YOU SAYING 3646 01:59:57,490 --> 01:59:58,591 SOMETHING? NO. OKAY. I JUST WANT 3647 01:59:58,591 --> 01:59:59,392 TO BRING THAT DISTINCTION. SO 3648 01:59:59,392 --> 02:00:00,226 THANK YOU FOR THAT. AND AGAIN, 3649 02:00:00,226 --> 02:00:01,661 IT'S NOT THAT THERE'S NOT 3650 02:00:01,661 --> 02:00:02,295 SOMEBODY PAYING AT THE END OF 3651 02:00:02,295 --> 02:00:03,763 THE DAY, BUT I WANTED TO 3652 02:00:03,763 --> 02:00:04,964 CLARIFY, YOU KNOW, WHAT'S 3653 02:00:04,964 --> 02:00:06,933 GENERAL FUND, WHAT IS OUR 3654 02:00:06,933 --> 02:00:10,069 PROPERTY TAX LEVY? AND THEN WHAT 3655 02:00:10,069 --> 02:00:12,538 IS THROUGH OUR OUR PAYROLL 3656 02:00:12,538 --> 02:00:13,706 EXPENSE TAX, I THINK A FEW OTHER 3657 02:00:13,706 --> 02:00:17,476 THINGS THAT I WANTED TO TOUCH ON 3658 02:00:17,476 --> 02:00:18,578 BEFORE WE BEFORE WE WRAP UP, 3659 02:00:18,578 --> 02:00:19,946 JUST THE THINGS I WANTED TO 3660 02:00:19,946 --> 02:00:21,514 HIGHLIGHT GOING BACK TO THE 3661 02:00:21,514 --> 02:00:22,648 HOMEOWNERSHIP. AND THANK YOU SO 3662 02:00:22,648 --> 02:00:23,616 MUCH, COUNCILMEMBER SAKA, FOR 3663 02:00:23,616 --> 02:00:25,718 BRINGING THIS UP. AND I WANTED 3664 02:00:25,718 --> 02:00:26,519 TO SHARE, YOU KNOW, YOU TALKED 3665 02:00:26,519 --> 02:00:28,454 ABOUT THIS DIRECTOR LARSON, I 3666 02:00:28,454 --> 02:00:29,121 KNOW THIS IS NOT A QUESTION FOR 3667 02:00:29,121 --> 02:00:30,456 YOU, DIRECTOR, BUT WE TALKED 3668 02:00:30,456 --> 02:00:32,491 ABOUT THE. HARVEY. AND I JUST 3669 02:00:32,491 --> 02:00:34,493 WANT TO SAY THIS IS SOMETHING I 3670 02:00:34,493 --> 02:00:38,197 THINK IS UNDERRATED IN TERMS OF 3671 02:00:38,197 --> 02:00:39,265 WORK THAT THE OFFICE OF HOUSING 3672 02:00:39,265 --> 02:00:41,500 HAS DONE THIS YEAR. AND THAT 3673 02:00:41,500 --> 02:00:42,468 ACQUISITION AND THE FACT THAT 3674 02:00:42,468 --> 02:00:44,036 NOT ONLY WILL IT BE 3675 02:00:44,036 --> 02:00:46,272 HOMEOWNERSHIP, BUT IT'LL BE 3676 02:00:46,272 --> 02:00:46,872 HOMEOWNERSHIP WITH COMMUNITY 3677 02:00:46,872 --> 02:00:47,807 PREFERENCE APPLIED IN THE 3678 02:00:47,807 --> 02:00:49,242 CENTRAL DISTRICT, WHICH REALLY 3679 02:00:49,242 --> 02:00:51,877 JUST GIVES US A REALLY FANTASTIC 3680 02:00:51,877 --> 02:00:53,179 OPPORTUNITY TO DO HOMEOWNERSHIP 3681 02:00:53,179 --> 02:00:54,780 RIGHT ALONG WITH EQUITY IS JUST 3682 02:00:54,780 --> 02:00:56,415 SOMETHING I DON'T THINK WE 3683 02:00:56,415 --> 02:00:58,351 COULD APPLAUD ENOUGH. AND SO I 3684 02:00:58,351 --> 02:00:59,018 APPRECIATE YOU BRINGING THAT UP. 3685 02:00:59,018 --> 02:01:00,786 IN TERMS OF WORK IN THE 3686 02:01:00,786 --> 02:01:02,388 PIPELINE. BUT I WANTED TO JUST 3687 02:01:02,388 --> 02:01:03,756 BRING THAT THAT FINER POINT TO 3688 02:01:03,756 --> 02:01:07,693 THAT. I THINK THAT BRINGS ME TO 3689 02:01:07,693 --> 02:01:08,861 THE THINGS I WANTED TO TOUCH ON. 3690 02:01:08,861 --> 02:01:09,996 AND THANK YOU AGAIN FOR MY 3691 02:01:09,996 --> 02:01:12,932 COLLEAGUES, FOR THE DISCUSSION 3692 02:01:12,932 --> 02:01:14,367 THAT HELPED ME ROUND OUT THINGS 3693 02:01:14,367 --> 02:01:16,202 I WANTED TO HIGHLIGHT TODAY. SO 3694 02:01:16,202 --> 02:01:18,904 I'LL CLOSE CHAIR BY SAYING, I 3695 02:01:18,904 --> 02:01:22,074 THINK OUR INVESTMENTS THAT WE'RE 3696 02:01:22,074 --> 02:01:22,708 MAKING IN HOUSING ARE HISTORIC, 3697 02:01:22,708 --> 02:01:25,278 AS YOU MENTIONED, AND ALSO, AS 3698 02:01:25,278 --> 02:01:27,113 WE HEARD TODAY, GIVEN THE 3699 02:01:27,113 --> 02:01:28,914 ONGOING OPERATIONS CHALLENGES, 3700 02:01:28,914 --> 02:01:29,482 GIVEN THE CHALLENGES IN THE 3701 02:01:29,482 --> 02:01:30,349 PIPELINE, IT'S ANOTHER AREA 3702 02:01:30,349 --> 02:01:33,152 WHERE IT'S HARD TO IMAGINE EVER 3703 02:01:33,152 --> 02:01:34,987 DOING ENOUGH BECAUSE THE NEED IS 3704 02:01:34,987 --> 02:01:36,756 SO HIGH, PARTICULARLY IN THAT 0 3705 02:01:36,756 --> 02:01:39,492 TO 30% SPACE, AS YOU ALL HAVE 3706 02:01:39,492 --> 02:01:40,126 ALREADY HIGHLIGHTED. SO I'LL 3707 02:01:40,126 --> 02:01:41,861 JUST CLOSE WITH SAYING AGAIN MY 3708 02:01:41,861 --> 02:01:45,097 GRATITUDE TO THE OFFICE FOR YOUR 3709 02:01:45,097 --> 02:01:45,398 WORK. AND I 3710 02:01:45,398 --> 02:01:45,998 -- THINK THE PIVOTS THAT ARE 3711 02:01:45,998 --> 02:01:46,666 BEING MADE THAT WE TALKED ABOUT 3712 02:01:46,666 --> 02:01:49,802 THIS YEAR ARE REALLY I'M 3713 02:01:49,802 --> 02:01:50,436 HOPEFUL THAT THEY'RE GOING TO 3714 02:01:50,436 --> 02:01:51,837 ALLOW US TO CONTINUE THESE 3715 02:01:51,837 --> 02:01:53,639 REALLY STRONG INVESTMENTS. AND I 3716 02:01:53,639 --> 02:01:57,476 KNOW WE JUST HAVE TO KEEP THIS 3717 02:01:57,476 --> 02:01:58,010 INVESTMENT STABLE AND DO 3718 02:01:58,010 --> 02:02:00,279 EVERYTHING THAT WE CAN TO TO 3719 02:02:00,279 --> 02:02:00,846 MAINTAIN THOSE INVESTMENTS, 3720 02:02:00,846 --> 02:02:01,480 PARTICULARLY WITH THOSE JUMP 3721 02:02:01,480 --> 02:02:02,648 START REVENUES. SO THANK YOU SO 3722 02:02:02,648 --> 02:02:04,950 MUCH, DIRECTOR, AND THANK YOU SO 3723 02:02:04,950 --> 02:02:05,151 MUCH. 3724 02:02:05,151 --> 02:02:06,819 -- CHAIR THANK YOU, 3725 02:02:06,819 --> 02:02:08,888 COUNCILMEMBER FOSTER, FOR 3726 02:02:08,888 --> 02:02:11,123 LEADING US THROUGH HOUSING AND 3727 02:02:11,123 --> 02:02:12,224 ARTS. WITH THAT, WE ARE GOING TO 3728 02:02:12,224 --> 02:02:14,560 TRANSITION TO OUR NEXT AGENDA 3729 02:02:14,560 --> 02:02:16,095 ITEM. WE ARE NOT GOING TO TAKE 3730 02:02:16,095 --> 02:02:18,664 AN EASE OR RECESS. IF YOU DO 3731 02:02:18,664 --> 02:02:21,333 NEED TO USE GET SOME SNACKS OR 3732 02:02:21,333 --> 02:02:23,502 GET SOME WATER, JUST PLEASE DO 3733 02:02:23,502 --> 02:02:26,605 SO NOW AND WATCH YOUR FIVE. THIS 3734 02:02:26,605 --> 02:02:30,576 IS WHERE EVERYONE TRANSFERS 3735 02:02:30,576 --> 02:02:31,644 QUICKLY. THANK YOU. WE ARE 3736 02:02:31,644 --> 02:02:33,479 GOING. YES. SO PLEASE TAKE THIS 3737 02:02:33,479 --> 02:02:36,582 MOMENT. IF THE CLERK COULD READ 3738 02:02:36,582 --> 02:02:38,684 THE SECOND ITEM INTO THE RECORD. 3739 02:02:38,684 --> 02:02:40,686 -- AGENDA ITEM TWO. SEATTLE. 3740 02:02:40,686 --> 02:02:41,320 DEPARTMENT OF CONSTRUCTION AND 3741 02:02:41,320 --> 02:02:42,421 INSPECTIONS FOR BRIEFING AND 3742 02:02:42,421 --> 02:02:43,856 DISCUSSION. 3743 02:02:43,856 --> 02:02:46,559 -- THANK YOU. AND WE HAVE 3744 02:02:46,559 --> 02:02:47,026 SEATTLE DEPARTMENT OF 3745 02:02:47,026 --> 02:02:47,927 CONSTRUCTION AND INSPECTIONS. 3746 02:02:47,927 --> 02:02:50,429 NEXT WE HAVE DIRECTOR SAM STEEL, 3747 02:02:50,429 --> 02:02:52,598 SHANE MERKOW STILL HAVE DIRECTOR 3748 02:02:52,598 --> 02:02:53,799 PANUCCI. AND WE HAVE A COUPLE 3749 02:02:53,799 --> 02:02:56,368 OTHER FOLKS. YOU ALL AS YOU'RE 3750 02:02:56,368 --> 02:02:58,237 TRANSFERRING. YOU ALL MADE A 3751 02:02:58,237 --> 02:03:00,406 SURPRISE GUEST APPEARANCE LAST 3752 02:03:00,406 --> 02:03:01,140 YEAR, I BELIEVE IN THE FINAL 3753 02:03:01,140 --> 02:03:04,744 STAGES OF OUR BUDGET, WHICH WAS 3754 02:03:04,744 --> 02:03:06,645 OUT OF STANDARD PRACTICE. SO I 3755 02:03:06,645 --> 02:03:07,913 APPRECIATE YOU BEING HERE DURING 3756 02:03:07,913 --> 02:03:09,615 THIS PART OF LAST YEAR'S BUDGET, 3757 02:03:09,615 --> 02:03:11,817 AS WELL AS THE LATE LAST MINUTE. 3758 02:03:11,817 --> 02:03:13,386 AND MAYBE YOU DIDN'T KNOW YOU 3759 02:03:13,386 --> 02:03:14,887 WERE COMING TO THE COMMITTEE 3760 02:03:14,887 --> 02:03:16,188 TABLE CALL THAT WE MADE LAST 3761 02:03:16,188 --> 02:03:18,657 NOVEMBER. SO GOOD TO SEE YOU ALL 3762 02:03:18,657 --> 02:03:22,995 BACK. STILL HAVE QUORUM. IF YOU 3763 02:03:22,995 --> 02:03:23,496 WANT TO JUST INTRODUCE 3764 02:03:23,496 --> 02:03:24,530 YOURSELVES, WE'RE GOING TO GO 3765 02:03:24,530 --> 02:03:26,599 THROUGH THE SAME PROGRAM, RUN 3766 02:03:26,599 --> 02:03:28,134 THROUGH YOUR PRESENTATION. WE'LL 3767 02:03:28,134 --> 02:03:29,635 TURN IT OVER COUNCILMEMBER LIN 3768 02:03:29,635 --> 02:03:31,637 AND THEN WE'LL COME BACK. SO 3769 02:03:31,637 --> 02:03:34,740 OVER TO YOU, DIRECTOR STEEL. 3770 02:03:34,740 --> 02:03:37,076 -- THANK YOU, COMMITTEE CHAIR 3771 02:03:37,076 --> 02:03:40,045 STRAUSS, I'M SAM STEEL, INTERIM 3772 02:03:40,045 --> 02:03:41,680 DIRECTOR OF SEATTLE DEPARTMENT 3773 02:03:41,680 --> 02:03:42,848 OF CONSTRUCTION AND INSPECTIONS. 3774 02:03:42,848 --> 02:03:43,382 -- AND I WILL JUST SAY, 3775 02:03:43,382 --> 02:03:44,283 GENTLEMEN, YOU'RE GOING TO HAVE 3776 02:03:44,283 --> 02:03:46,285 TO MICK JAGGER PRETEND YOU'RE IN 3777 02:03:46,285 --> 02:03:47,319 THE ROLLING STONES. PULL THAT 3778 02:03:47,319 --> 02:03:51,323 MICROPHONE CLOSE. THANK YOU. 3779 02:03:51,323 --> 02:03:51,957 -- SHANE. 3780 02:03:51,957 --> 02:03:55,561 -- SHANE. YOUR TURN. 3781 02:03:55,561 --> 02:03:58,130 -- SHANE. SHANE, FINANCE 3782 02:03:58,130 --> 02:03:58,531 DIRECTOR AT SDCI. 3783 02:03:58,531 --> 02:04:00,232 -- THANK YOU. STILL HAVE 3784 02:04:00,232 --> 02:04:01,133 DIRECTOR PANUCCI STILL HAVE 3785 02:04:01,133 --> 02:04:02,201 DIRECTOR WHITSON. JUST TAKE IT 3786 02:04:02,201 --> 02:04:04,770 AWAY, GENTLEMEN. THANK YOU. 3787 02:04:04,770 --> 02:04:06,772 -- SO THANK YOU, COMMITTEE CHAIR 3788 02:04:06,772 --> 02:04:08,774 STRAUSS. AND I WANT TO JUST SAY 3789 02:04:08,774 --> 02:04:11,677 THAT TO ALL THE COUNCILMEMBERS. 3790 02:04:11,677 --> 02:04:13,612 THANK YOU FOR THIS OPPORTUNITY 3791 02:04:13,612 --> 02:04:18,584 TO PRESENT OUR APPROACH ON 3792 02:04:18,584 --> 02:04:23,255 PROVIDING A A SOLID FINANCIAL 3793 02:04:23,255 --> 02:04:26,225 STEWARDSHIP WITH CAREFUL, 3794 02:04:26,225 --> 02:04:26,826 THOUGHTFUL THOROUGHNESS. AND 3795 02:04:26,826 --> 02:04:27,993 THAT'S BEING ASKED FOR BY THE 3796 02:04:27,993 --> 02:04:31,897 PUBLIC RIGHT NOW. I ALSO WANT TO 3797 02:04:31,897 --> 02:04:33,399 THANK YOUR STAFF MEMBERS WHO 3798 02:04:33,399 --> 02:04:35,634 HAVE SUPPORTED US. COUNCIL 3799 02:04:35,634 --> 02:04:37,970 CENTRAL STAFF AND AS WELL AS 3800 02:04:37,970 --> 02:04:42,041 DIRECTOR PANUCCI, FOR ALL YOUR 3801 02:04:42,041 --> 02:04:42,675 WISDOM AND GUIDANCE THROUGHOUT 3802 02:04:42,675 --> 02:04:50,683 ALL OF THIS. SO LEADING INTO OUR 3803 02:04:50,683 --> 02:04:55,354 PRESENTATION. OUR VISION, 3804 02:04:55,354 --> 02:04:56,755 PURPOSE, AND VALUES HAVE 3805 02:04:56,755 --> 02:04:59,024 REMAINED THE SAME FROM OUR LAST 3806 02:04:59,024 --> 02:05:01,927 REPORTING PERIOD. WE ADMINISTER 3807 02:05:01,927 --> 02:05:03,829 ORDINANCES REGULATING BUILDING 3808 02:05:03,829 --> 02:05:06,198 CONSTRUCTION, USE OF LAND AND 3809 02:05:06,198 --> 02:05:09,401 HOUSING. WE SUPPORT KEY 3810 02:05:09,401 --> 02:05:10,035 PRIORITIES, INCLUDING DELIVERING 3811 02:05:10,035 --> 02:05:12,538 ESSENTIAL SERVICES AND BUILDING 3812 02:05:12,538 --> 02:05:21,247 SAFER AND MORE JUST COMMUNITIES. 3813 02:05:21,247 --> 02:05:21,547 NEXT SLIDE. 3814 02:05:21,547 --> 02:05:28,220 -- ALL RIGHT. SO ABOUT 91% OF 3815 02:05:28,220 --> 02:05:29,922 OUR SDCI FUNDING COMES FROM 3816 02:05:29,922 --> 02:05:31,690 PERMIT FEES, WITH THE REMAINING 3817 02:05:31,690 --> 02:05:34,059 9% FROM THE GENERAL FUND AND 3818 02:05:34,059 --> 02:05:35,494 OTHER SOURCES. STATE LAW 3819 02:05:35,494 --> 02:05:37,296 REQUIRES PERMIT FEES TO REFLECT 3820 02:05:37,296 --> 02:05:39,231 THE COST OF PROVIDING THOSE 3821 02:05:39,231 --> 02:05:42,134 SERVICES. AND THOSE REVENUES CAN 3822 02:05:42,134 --> 02:05:44,703 ONLY SUPPORT FEE RELATED WORK. 3823 02:05:44,703 --> 02:05:45,671 OUR FOCUS IS ON ADVANCING THE 3824 02:05:45,671 --> 02:05:47,473 CITY'S HOUSING AND PERMITTING 3825 02:05:47,473 --> 02:05:50,109 PRIORITIES, IMPROVING SPEED AND 3826 02:05:50,109 --> 02:05:50,743 PREDICTABILITY, AND SUSTAINING 3827 02:05:50,743 --> 02:05:52,578 CORE SERVICES AS DEVELOPMENT 3828 02:05:52,578 --> 02:05:56,582 ACTIVITY AND AVAILABLE RESOURCES 3829 02:05:56,582 --> 02:06:06,525 CHANGE. ALL RIGHT. SO THIS IS 3830 02:06:06,525 --> 02:06:07,860 OUR UPDATED MASTER USE PERMIT. 3831 02:06:07,860 --> 02:06:10,262 SORRY, THIS IS OUR UPDATED 3832 02:06:10,262 --> 02:06:13,899 MASTER USE PERMIT APPLICATIONS 3833 02:06:13,899 --> 02:06:14,533 CHARTS THAT SHOWS BETWEEN 2000 3834 02:06:14,533 --> 02:06:20,306 AND 7 TO THE 2026 PROJECTED YEAR 3835 02:06:20,306 --> 02:06:21,173 END AT THE FAR RIGHT. I GUESS IF 3836 02:06:21,173 --> 02:06:24,977 YOU'RE LOOKING AT IT AND THE 3837 02:06:24,977 --> 02:06:27,413 LEFT IS THE INTAKE VOLUME BY 3838 02:06:27,413 --> 02:06:30,149 MASTER USE PERMIT TYPE AND 3839 02:06:30,149 --> 02:06:31,250 SORRY, ON THE LEFT AND THEN ON 3840 02:06:31,250 --> 02:06:35,120 THE RIGHT IS THE FEES INVOICED. 3841 02:06:35,120 --> 02:06:38,657 AND YOU CAN SEE THE THE RISE AND 3842 02:06:38,657 --> 02:06:40,926 FALL OF BOTH. SO FOR 2026, OUR 3843 02:06:40,926 --> 02:06:42,761 MASTER USE PERMIT APPLICATION 3844 02:06:42,761 --> 02:06:46,665 VOLUMES ARE PROJECTED TO BE 3845 02:06:46,665 --> 02:06:48,834 ABOUT 60% BELOW THE 2019 LEVELS. 3846 02:06:48,834 --> 02:06:50,135 WHILE CONSTRUCTION PERMIT 3847 02:06:50,135 --> 02:06:53,572 APPLICATIONS ARE PROJECTED TO BE 3848 02:06:53,572 --> 02:06:56,075 ABOUT 15% BELOW 2019 VOLUMES. 3849 02:06:56,075 --> 02:06:59,144 AND, YOU KNOW, PLEASE NOTE THAT 3850 02:06:59,144 --> 02:07:00,879 THERE'S A PRECIPITOUS DROP IN 3851 02:07:00,879 --> 02:07:02,448 MASTER USE PERMITS, INTAKE FEES, 3852 02:07:02,448 --> 02:07:06,352 INTAKE, AND FEES IN 2026. BOTH 3853 02:07:06,352 --> 02:07:08,787 THE FEES INVOICE AND THE INTAKE 3854 02:07:08,787 --> 02:07:09,355 VOLUMES ARE BELOW BELOW THE 3855 02:07:09,355 --> 02:07:14,059 LEVELS IN THE RECESSION PERIOD 3856 02:07:14,059 --> 02:07:21,533 OF 2009 AND 2010. UNDER 3857 02:07:21,533 --> 02:07:25,537 CONSTRUCTION PERMIT APPLICATIONS 3858 02:07:25,537 --> 02:07:26,305 AGAIN, THIS SHOWS ON THE LEFT 3859 02:07:26,305 --> 02:07:28,707 THE CONSTRUCTION, CONSTRUCTION 3860 02:07:28,707 --> 02:07:29,475 PERMIT APPLICATION VOLUME, AND 3861 02:07:29,475 --> 02:07:32,911 ON THE RIGHT, THE CONSTRUCTION 3862 02:07:32,911 --> 02:07:36,382 PERMIT VALUATIONS IN BILLIONS OF 3863 02:07:36,382 --> 02:07:38,751 DOLLARS. CONSTRUCTION PERMIT 3864 02:07:38,751 --> 02:07:39,284 APPLICATION VOLUMES HAVE 3865 02:07:39,284 --> 02:07:41,787 IMPROVED SINCE 2024, BUT THE 3866 02:07:41,787 --> 02:07:45,157 SHIFT TOWARDS SMALLER, LOW, 3867 02:07:45,157 --> 02:07:46,759 LOWER VALUE PROJECTS HAS LIMITED 3868 02:07:46,759 --> 02:07:49,428 THE RECOVERY OF PERMIT FEE 3869 02:07:49,428 --> 02:07:50,763 REVENUE. WE TOLD THE SAME STORY 3870 02:07:50,763 --> 02:07:56,735 LAST YEAR AS WELL. ALL RIGHT. 3871 02:07:56,735 --> 02:08:00,939 AND THEN THIS IS YOUR SLIDE. 3872 02:08:00,939 --> 02:08:04,543 -- SO THIS IS WHERE WE GO INTO 3873 02:08:04,543 --> 02:08:07,613 OUR DEPARTMENT RIGHT SIZING THIS 3874 02:08:07,613 --> 02:08:08,981 PROPOSAL REDUCES 34 FEE FUNDED 3875 02:08:08,981 --> 02:08:10,883 POSITIONS, MOST OF WHICH ARE 3876 02:08:10,883 --> 02:08:11,784 CURRENTLY VACANT. SO OUR 3877 02:08:11,784 --> 02:08:13,719 STAFFING LEVELS ARE BETTER 3878 02:08:13,719 --> 02:08:15,554 ALIGNED WITH THE WORKLOAD WE'RE 3879 02:08:15,554 --> 02:08:17,523 SEEING BASED ON OUR CURRENT 3880 02:08:17,523 --> 02:08:20,325 PROJECTIONS, WE DON'T 3881 02:08:20,325 --> 02:08:20,893 ANTICIPATE IMPACTS TO CORE 3882 02:08:20,893 --> 02:08:23,128 PERMITTING INSPECTIONS, ISSUANCE 3883 02:08:23,128 --> 02:08:24,797 OR OVERALL TIMELINES. WE ARE 3884 02:08:24,797 --> 02:08:27,332 STILL RELYING ON FUND BALANCE IN 3885 02:08:27,332 --> 02:08:29,501 THE NEAR TERM FUTURE. BUT THESE 3886 02:08:29,501 --> 02:08:31,970 REDUCTIONS HELP SLOW THAT 3887 02:08:31,970 --> 02:08:34,807 DRAWDOWN AND PRESERVE SOME 3888 02:08:34,807 --> 02:08:36,608 FLEXIBILITY TO RESTORE STAFFING. 3889 02:08:36,608 --> 02:08:39,645 IF WORKLOAD BEGINS TO INCREASE 3890 02:08:39,645 --> 02:08:42,114 AGAIN FOR THE FIELD POSITIONS, 3891 02:08:42,114 --> 02:08:42,748 THE REDUCTIONS ARE CONCENTRATED 3892 02:08:42,748 --> 02:08:45,918 IN AREAS WHERE WORKLOAD HAS 3893 02:08:45,918 --> 02:08:48,654 DECLINED, PARTICULARLY 3894 02:08:48,654 --> 02:08:49,154 CASHIERING AND PAYMENT 3895 02:08:49,154 --> 02:08:51,490 PROCESSING AND DESIGN REVIEW 3896 02:08:51,490 --> 02:08:54,026 RELATED WORK. WE ALSO HAVE 3897 02:08:54,026 --> 02:08:57,029 SOMEWHAT LESS CAPACITY FOR 3898 02:08:57,029 --> 02:09:04,703 INTERNAL SPECIAL PROJECTS NEXT 3899 02:09:04,703 --> 02:09:07,673 SLIDE. THIS IS OUR 3900 02:09:07,673 --> 02:09:08,140 IMPLEMENTATION OF NEW 3901 02:09:08,140 --> 02:09:11,043 REGULATIONS. THE RENTAL 3902 02:09:11,043 --> 02:09:13,378 REGULATION ENFORCEMENT PROGRAM 3903 02:09:13,378 --> 02:09:15,214 HAS JUST BEEN RECENTLY ADDED. 3904 02:09:15,214 --> 02:09:17,049 THIS PROPOSAL ADDS STAFF TO 3905 02:09:17,049 --> 02:09:17,649 IMPLEMENT AND ENFORCE THE NEW 3906 02:09:17,649 --> 02:09:20,552 RENTAL REGULATIONS ADOPTED UNDER 3907 02:09:20,552 --> 02:09:24,890 ORDINANCE 127497. IN ADDITION TO 3908 02:09:24,890 --> 02:09:28,427 THE STAFF, THE PROPOSAL ADDS 3909 02:09:28,427 --> 02:09:33,031 $200,000. FOR CONTRACTING WITH 3910 02:09:33,031 --> 02:09:35,267 COMMUNITY BASED ORGANIZATIONS 3911 02:09:35,267 --> 02:09:37,836 FOR OUTREACH AND EDUCATION. THE 3912 02:09:37,836 --> 02:09:38,370 ADDITIONAL STAFFING WOULD 3913 02:09:38,370 --> 02:09:39,838 SUPPORT THE HIGHER VOLUME OF 3914 02:09:39,838 --> 02:09:42,774 CASES. WE EXPECT, INCLUDING 3915 02:09:42,774 --> 02:09:44,610 INVESTIGATIONS, OUTREACH, 3916 02:09:44,610 --> 02:09:47,146 BUILDING WIDE ENFORCEMENT AND 3917 02:09:47,146 --> 02:09:49,715 ASSISTANCE TO LANDLORDS. THE 3918 02:09:49,715 --> 02:09:51,850 PROGRAM IS DESIGNED TO BE 3919 02:09:51,850 --> 02:09:53,085 SELF-SUPPORTING THROUGH A NEW 3920 02:09:53,085 --> 02:09:55,988 FEE, WITH SOME ONE TIME 3921 02:09:55,988 --> 02:09:59,391 IMPLEMENTATION SUPPORT INCLUDED 3922 02:09:59,391 --> 02:10:02,227 IN 2027. THE STAFFING LEVEL IS 3923 02:10:02,227 --> 02:10:04,997 INTENDED TO SUPPORT TIMELY AND 3924 02:10:04,997 --> 02:10:06,965 CONSISTENT IMPLEMENTATION OF THE 3925 02:10:06,965 --> 02:10:08,600 ORDINANCE, WITH LESS CAPACITY, 3926 02:10:08,600 --> 02:10:11,236 WE WOULD EXPECT SLOWER CASE 3927 02:10:11,236 --> 02:10:14,640 RESOLUTION, GROWING BACKLOGS AND 3928 02:10:14,640 --> 02:10:20,445 LESS CONSISTENT ENFORCEMENT THE 3929 02:10:20,445 --> 02:10:24,016 NEXT SLIDE IS THE HOUSING OMBUDS 3930 02:10:24,016 --> 02:10:26,151 SUPPORT. THIS PROPOSAL 3931 02:10:26,151 --> 02:10:28,987 ESTABLISHES A HOUSING OMBUDS TO 3932 02:10:28,987 --> 02:10:31,790 HELP LOW INCOME AND COMMUNITY 3933 02:10:31,790 --> 02:10:34,293 DRIVEN PROJECTS NAVIGATE THE 3934 02:10:34,293 --> 02:10:34,960 CITY'S PERMITTING PROCESS AND 3935 02:10:34,960 --> 02:10:37,529 IMPROVE COORDINATION ACROSS 3936 02:10:37,529 --> 02:10:38,697 DEPARTMENTS. THE GOAL IS TO 3937 02:10:38,697 --> 02:10:41,767 REDUCE DELAYS, IMPROVE OUTCOMES 3938 02:10:41,767 --> 02:10:44,570 FOR COMMUNITY DEVELOPERS, 3939 02:10:44,570 --> 02:10:46,205 AFFORDABLE HOUSING SPONSORS AND 3940 02:10:46,205 --> 02:10:46,738 THE RESIDENTS THAT THESE 3941 02:10:46,738 --> 02:10:48,807 PROJECTS ARE INTENDED TO SERVE. 3942 02:10:48,807 --> 02:10:50,776 THE POSITION IS FUNDED THROUGH 3943 02:10:50,776 --> 02:10:52,578 THE JUMPSTART PAYROLL EXPENSE 3944 02:10:52,578 --> 02:10:54,780 TAX FUND AND WAS INITIATED 3945 02:10:54,780 --> 02:10:57,282 THROUGH MAYOR WILSON'S 3946 02:10:57,282 --> 02:10:57,883 EXECUTIVE ORDER TO ACCELERATE 3947 02:10:57,883 --> 02:11:00,385 HOUSING PRODUCTION. THE ADDED 3948 02:11:00,385 --> 02:11:05,357 CAPACITY IS INTENDED TO PROVIDE 3949 02:11:05,357 --> 02:11:05,991 MORE CONSISTENT NAVIGATION AND 3950 02:11:05,991 --> 02:11:13,565 COORDINATION FOR THESE PROJECTS. 3951 02:11:13,565 --> 02:11:17,102 -- ALL RIGHT, SO AT SDCI, EVERY 3952 02:11:17,102 --> 02:11:18,437 YEAR, WE REVIEW OUR FEES TO 3953 02:11:18,437 --> 02:11:20,439 DETERMINE WHETHER ADJUSTMENTS 3954 02:11:20,439 --> 02:11:22,708 ARE NEEDED TO MAINTAIN COST 3955 02:11:22,708 --> 02:11:24,610 RECOVERY. AND THAT MEANS LOOKING 3956 02:11:24,610 --> 02:11:26,245 AT UPDATED WORKLOAD REVENUES, 3957 02:11:26,245 --> 02:11:28,647 EXPENDITURES, STAFFING LEVELS, 3958 02:11:28,647 --> 02:11:30,282 AND FUND BALANCE, AND 3959 02:11:30,282 --> 02:11:32,384 DETERMINING WHETHER FEES NEED TO 3960 02:11:32,384 --> 02:11:34,653 INCREASE OR DECREASE. LAST YEAR, 3961 02:11:34,653 --> 02:11:35,887 WE INDICATED THAT WE COULD BE 3962 02:11:35,887 --> 02:11:38,890 LOOKING AT A INCREASE IN THE 17 3963 02:11:38,890 --> 02:11:43,161 TO 18% RANGE FOR 2027, BASED ON 3964 02:11:43,161 --> 02:11:44,730 OUR UPDATED REVIEW, WE ARE 3965 02:11:44,730 --> 02:11:45,697 PROPOSING A LOWER INCREASE FOR 3966 02:11:45,697 --> 02:11:48,834 BUILDING AND LAND USE. 10.7% IN 3967 02:11:48,834 --> 02:11:52,504 TOTAL, WHICH INCLUDES THREE, 3968 02:11:52,504 --> 02:11:55,774 WHICH INCLUDES THE 3.7% 3969 02:11:55,774 --> 02:11:57,509 INFLATIONARY ADJUSTMENT. THE 3970 02:11:57,509 --> 02:11:58,076 OVERALL FEE LEGISLATION IS 3971 02:11:58,076 --> 02:12:00,679 PROJECTED TO GENERATE ABOUT 6.3 3972 02:12:00,679 --> 02:12:02,714 MILLION ANNUALLY. THESE 3973 02:12:02,714 --> 02:12:05,317 ADDITIONAL REVENUES HELP IMPROVE 3974 02:12:05,317 --> 02:12:08,253 COST RECOVERY, REDUCE THE NEED 3975 02:12:08,253 --> 02:12:10,489 TO FOR FURTHER STAFF REDUCTIONS 3976 02:12:10,489 --> 02:12:13,625 AND SLOW THE USE OF FUND BALANCE 3977 02:12:13,625 --> 02:12:16,762 WHILE WE CONTINUE TO ADJUST TO 3978 02:12:16,762 --> 02:12:17,930 CHANGING DEVELOPMENT ACTIVITY 3979 02:12:17,930 --> 02:12:19,665 FOR REFRIGERATION AND FURNACE 3980 02:12:19,665 --> 02:12:23,468 FEES, WE MADE SIGNIFICANT 3981 02:12:23,468 --> 02:12:24,102 REDUCTIONS BETWEEN 2020 AND 2022 3982 02:12:24,102 --> 02:12:25,671 IN RESPONSE TO CHANGES IN THE 3983 02:12:25,671 --> 02:12:28,573 HEATING AND COOLING MARKET AND 3984 02:12:28,573 --> 02:12:30,609 INSTALLATION PATTERNS. THOSE 3985 02:12:30,609 --> 02:12:32,811 CONDITIONS HAVE SINCE CHANGED, 3986 02:12:32,811 --> 02:12:34,413 AND THE PROPOSED INCREASE IS 3987 02:12:34,413 --> 02:12:35,747 INTENDED TO BRING REVENUES BACK 3988 02:12:35,747 --> 02:12:37,149 INTO BETTER ALIGNMENT WITH THE 3989 02:12:37,149 --> 02:12:40,385 COST OF PROVIDING THE SERVICE. 3990 02:12:40,385 --> 02:12:43,055 EVEN WITH THE 2027 FEE INCREASE 3991 02:12:43,055 --> 02:12:44,056 FOR THESE FOR REFRIGERATION AND 3992 02:12:44,056 --> 02:12:46,258 FURNACE, THESE FEES WILL REMAIN 3993 02:12:46,258 --> 02:12:48,427 WELL BELOW THEIR 2020 LEVELS. 3994 02:12:48,427 --> 02:12:53,265 FOR, EXCUSE ME FOR BOILER AND 3995 02:12:53,265 --> 02:12:54,132 CONVEYANCE FEES. WE ARE IN THE 3996 02:12:54,132 --> 02:12:55,567 THIRD YEAR OF A FOUR YEAR EFFORT 3997 02:12:55,567 --> 02:12:57,502 TO BRING FEES TO A SUSTAINABLE 3998 02:12:57,502 --> 02:13:00,105 LEVEL. THESE PROGRAMS HAD 3999 02:13:00,105 --> 02:13:02,774 RECEIVED LITTLE BEYOND 4000 02:13:02,774 --> 02:13:03,408 INFLATIONARY ADJUSTMENTS SINCE 4001 02:13:03,408 --> 02:13:04,710 2017, BUT OVER TIME, THEIR 4002 02:13:04,710 --> 02:13:07,346 ACTUAL OPERATING COSTS BECAME 4003 02:13:07,346 --> 02:13:09,014 CLEAR AS MANAGEMENT, 4004 02:13:09,014 --> 02:13:11,216 ADMINISTRATION AND BUSINESS 4005 02:13:11,216 --> 02:13:11,683 PROCESSES WERE BETTER 4006 02:13:11,683 --> 02:13:15,988 STRENGTHENED OR STRENGTHENED. 4007 02:13:15,988 --> 02:13:18,256 THE FEES INCREASES ARE INTENDED 4008 02:13:18,256 --> 02:13:21,226 TO BRING FEE REVENUE INTO BETTER 4009 02:13:21,226 --> 02:13:22,127 ALIGNMENT WITH THE CURRENT COST 4010 02:13:22,127 --> 02:13:24,663 OF OPERATING. THOSE PROGRAMS. 4011 02:13:24,663 --> 02:13:27,566 THE LEGISLATION ALSO ESTABLISHES 4012 02:13:27,566 --> 02:13:30,635 THE NEW RENTAL AGREEMENT 4013 02:13:30,635 --> 02:13:32,070 REGULATION FEE, $11 PER RENTAL 4014 02:13:32,070 --> 02:13:33,672 UNIT, EVERY TWO YEARS, OR THE 4015 02:13:33,672 --> 02:13:36,708 EQUIVALENT OF 550 PER YEAR TO 4016 02:13:36,708 --> 02:13:37,609 SUPPORT IMPLEMENTATION AND 4017 02:13:37,609 --> 02:13:41,613 ENFORCEMENT OF THE NEW RENTAL 4018 02:13:41,613 --> 02:13:46,485 REGULATIONS. FUND BALANCE IMPACT 4019 02:13:46,485 --> 02:13:48,820 SLIDE. THIS CHART SHOWS THE 4020 02:13:48,820 --> 02:13:51,823 CHANGE IN OUR OVERALL FUND 4021 02:13:51,823 --> 02:13:55,060 BALANCE OVER TIME. WE WERE 4022 02:13:55,060 --> 02:13:55,694 GENERALLY BETWEEN 80 MILLION TO 4023 02:13:55,694 --> 02:13:58,830 100 MILLION THROUGH 2023, BUT 4024 02:13:58,830 --> 02:14:00,932 SINCE THEN, WE'VE DRAWN DOWN 4025 02:14:00,932 --> 02:14:01,566 THOSE BALANCES SIGNIFICANTLY AS 4026 02:14:01,566 --> 02:14:04,269 PERMIT REVENUES HAVE DECLINED. 4027 02:14:04,269 --> 02:14:06,571 BY THE END OF 2026, WE'RE 4028 02:14:06,571 --> 02:14:09,241 PROJECTING AN OVERALL FUND 4029 02:14:09,241 --> 02:14:11,376 BALANCE OF ROUGHLY $30 MILLION. 4030 02:14:11,376 --> 02:14:13,645 THE FEE INCREASE IS PROPOSED FOR 4031 02:14:13,645 --> 02:14:16,014 2027, ALONG WITH THE EXPENDITURE 4032 02:14:16,014 --> 02:14:17,949 REDUCTIONS WE DISCUSSED EARLIER, 4033 02:14:17,949 --> 02:14:18,550 ARE EXPECTED TO STABILIZE THE 4034 02:14:18,550 --> 02:14:21,186 FUND BALANCE AND SLOW FURTHER 4035 02:14:21,186 --> 02:14:23,288 EROSION. ONE IMPORTANT 4036 02:14:23,288 --> 02:14:25,223 DISTINCTION IS THAT THE TOTAL 4037 02:14:25,223 --> 02:14:27,926 FUND BALANCE INCLUDES DIFFERENT 4038 02:14:27,926 --> 02:14:29,261 FUNDING COMPONENTS WITHIN THAT 4039 02:14:29,261 --> 02:14:30,762 TOTAL, OUR BUILDING AND LAND USE 4040 02:14:30,762 --> 02:14:31,997 CORE STAFFING RESERVES ARE 4041 02:14:31,997 --> 02:14:32,631 PROJECTED TO BE NEARLY EXHAUSTED 4042 02:14:32,631 --> 02:14:42,407 BY THE END OF 2026. AND THEN I 4043 02:14:42,407 --> 02:14:43,542 WE HAD A SIMILAR SLIDE LAST 4044 02:14:43,542 --> 02:14:45,077 YEAR, BUT THIS SHOWS THE IMPACT 4045 02:14:45,077 --> 02:14:47,446 OF THE CONSTRUCTION PERMITS FOR 4046 02:14:47,446 --> 02:14:49,314 DIFFERENT SIZED AND DIFFERENT 4047 02:14:49,314 --> 02:14:52,984 TYPES OF PROJECTS. FOR 500 4048 02:14:52,984 --> 02:14:57,756 SQUARE FOOT DAD YOU IT. IT SHOWS 4049 02:14:57,756 --> 02:15:00,692 THAT THE. THE FEE INCREASE OF 4050 02:15:00,692 --> 02:15:03,295 THE CONSTRUCTION PERMITS WILL BE 4051 02:15:03,295 --> 02:15:03,762 7% ABOVE OUR ASSUMED 4052 02:15:03,762 --> 02:15:09,468 INFLATIONARY 3.7 INCREASE, 3.7% 4053 02:15:09,468 --> 02:15:13,071 INCREASE. SO ON. ON THE 500 4054 02:15:13,071 --> 02:15:14,573 SQUARE FOOT D ATU THE CHANGE FOR 4055 02:15:14,573 --> 02:15:20,846 ONE UNIT IS $369. MORE FOR 4500 4056 02:15:20,846 --> 02:15:23,582 SQUARE FOOT, FOUR UNIT 4057 02:15:23,582 --> 02:15:27,519 TOWNHOUSE, $372 PER UNIT FOR 4058 02:15:27,519 --> 02:15:30,222 150,000 SQUARE FOOT, 230 UNIT 4059 02:15:30,222 --> 02:15:34,659 APARTMENT WITH PARKING 4060 02:15:34,659 --> 02:15:37,496 APPROXIMATELY $147. PER $147 PER 4061 02:15:37,496 --> 02:15:39,498 UNIT. AND THESE ARE JUST FOR 4062 02:15:39,498 --> 02:15:47,572 ILLUSTRATIVE PURPOSES ONLY. 4063 02:15:47,572 --> 02:15:50,141 -- THE NEXT SLIDE IS OUR 4064 02:15:50,141 --> 02:15:52,777 POSITION CHANGES. TO SUMMARIZE, 4065 02:15:52,777 --> 02:15:54,679 OUR POSITION CHANGES 34 4066 02:15:54,679 --> 02:15:58,016 POSITIONS IN OUR BUILDING AND 4067 02:15:58,016 --> 02:15:58,517 LAND USE FEE SUPPORTED 4068 02:15:58,517 --> 02:16:00,752 OPERATIONS TO BETTER ALIGN 4069 02:16:00,752 --> 02:16:03,288 STAFFING WITH CURRENT WORKLOAD 4070 02:16:03,288 --> 02:16:04,890 AND AVAILABLE REVENUES. AS OF 4071 02:16:04,890 --> 02:16:07,158 SEPTEMBER 1st, OF THE 34 4072 02:16:07,158 --> 02:16:09,327 POSITIONS THAT ARE VACANT, SEVEN 4073 02:16:09,327 --> 02:16:11,162 ARE FILLED. SO WE ARE 4074 02:16:11,162 --> 02:16:13,999 ANTICIPATING SEVEN LAYOFFS. 4075 02:16:13,999 --> 02:16:16,434 THESE REDUCTIONS GENERATE 4076 02:16:16,434 --> 02:16:18,904 ONGOING SAVINGS WHILE PRESERVING 4077 02:16:18,904 --> 02:16:19,538 OUR CORE PERMITTING INSPECTION 4078 02:16:19,538 --> 02:16:23,642 AND REGULATORY SERVICES BASED ON 4079 02:16:23,642 --> 02:16:26,244 CURRENT AND PROJECTED WORKLOAD. 4080 02:16:26,244 --> 02:16:28,813 WE DO NOT ANTICIPATE A MATERIAL 4081 02:16:28,813 --> 02:16:30,181 IMPACT TO PRIMARY PERMIT REVIEW, 4082 02:16:30,181 --> 02:16:33,018 ISSUANCE OR INSPECTION TIMELINES 4083 02:16:33,018 --> 02:16:35,854 FOR THE FILLED POSITIONS. THE 4084 02:16:35,854 --> 02:16:38,657 REDUCTIONS REFLECT WORK THAT IS 4085 02:16:38,657 --> 02:16:41,126 EITHER MATERIALLY DECLINED OR IS 4086 02:16:41,126 --> 02:16:41,626 SHIFTING AS DEPARTMENT 4087 02:16:41,626 --> 02:16:46,464 PRIORITIES AND SERVICE DELIVERY 4088 02:16:46,464 --> 02:16:50,168 CHANGE. QUESTIONS 4089 02:16:50,168 --> 02:16:52,137 -- THANK YOU. DIRECTOR. 4090 02:16:52,137 --> 02:16:54,573 DIRECTOR. ANYTHING TO ADD? 4091 02:16:54,573 --> 02:16:55,740 DIRECTOR OR COUNCILMEMBER? LIN. 4092 02:16:55,740 --> 02:16:57,075 SORRY TO GIVE YOU A PAY RAISE 4093 02:16:57,075 --> 02:16:57,709 THERE. COUNCILMEMBER LIN AS 4094 02:16:57,709 --> 02:16:59,578 CHAIR OF THE COMMITTEE, YOU ARE 4095 02:16:59,578 --> 02:16:59,878 RECOGNIZED. 4096 02:16:59,878 --> 02:17:01,379 -- THANK YOU CHAIR. THANK YOU TO 4097 02:17:01,379 --> 02:17:05,850 OUR PRESENTERS. JUST START OFF 4098 02:17:05,850 --> 02:17:09,354 WITH A FEW QUESTIONS. WELL FIRST 4099 02:17:09,354 --> 02:17:11,756 FIRST, THANKS FOR ALL YOU DO. 4100 02:17:11,756 --> 02:17:13,758 AND OBVIOUSLY THERE'S ALWAYS A 4101 02:17:13,758 --> 02:17:17,095 LOT OF FOCUS ON ON HOW WE CAN DO 4102 02:17:17,095 --> 02:17:20,131 BETTER WITH OUR PERMIT REVIEWS 4103 02:17:20,131 --> 02:17:23,301 AND SO ON. AND IT'S HARD. WE, 4104 02:17:23,301 --> 02:17:25,737 WE IMPOSE A LOT OF REQUIREMENTS 4105 02:17:25,737 --> 02:17:26,671 AND ASK A LOT OF YOU AND ARE 4106 02:17:26,671 --> 02:17:29,441 FROM OUR PERMIT REVIEWERS AND, 4107 02:17:29,441 --> 02:17:30,976 AND ALSO A LOT OF PERMANENT 4108 02:17:30,976 --> 02:17:32,344 REVIEWERS ARE NOT UNDER YOUR 4109 02:17:32,344 --> 02:17:33,778 DIRECT CONTROL. A LOT OF FOLKS 4110 02:17:33,778 --> 02:17:35,880 ARE UNDER OTHER DEPARTMENTS, YOU 4111 02:17:35,880 --> 02:17:38,817 KNOW, S DOT SPU SEATTLE CITY 4112 02:17:38,817 --> 02:17:42,020 LIGHT FIRE AND SO ON. AND, YOU 4113 02:17:42,020 --> 02:17:44,789 KNOW, AND SO WHEN WE LOOK AT THE 4114 02:17:44,789 --> 02:17:46,524 STAFFING NUMBERS, IN SOME WAYS, 4115 02:17:46,524 --> 02:17:47,926 IT DOESN'T SHOW THE FULL 4116 02:17:47,926 --> 02:17:49,995 PICTURE OF THAT PERMIT REVIEW 4117 02:17:49,995 --> 02:17:53,598 STAFF. AND I GUESS I'M NOT SURE 4118 02:17:53,598 --> 02:17:55,200 YOU KNOW, HOW THOSE OTHER 4119 02:17:55,200 --> 02:17:56,701 DEPARTMENTS, BECAUSE IT DIDN'T 4120 02:17:56,701 --> 02:17:58,303 COME UP IN THOSE DISCUSSIONS AND 4121 02:17:58,303 --> 02:17:59,371 THE UTILITIES AREN'T, AREN'T 4122 02:17:59,371 --> 02:18:00,839 COMING BEFORE US. BUT I DON'T 4123 02:18:00,839 --> 02:18:05,377 KNOW HOW THE DOWN DOWNTURN IN 4124 02:18:05,377 --> 02:18:07,245 PERMIT ACTIVITY AFFECTS SORT OF 4125 02:18:07,245 --> 02:18:07,879 THOSE OTHER DEPARTMENTS. SO NOT 4126 02:18:07,879 --> 02:18:09,414 A DIRECT QUESTION TO YOU, BUT 4127 02:18:09,414 --> 02:18:12,317 JUST SORT OF A GENERAL 4128 02:18:12,317 --> 02:18:13,652 PONDERING. BUT IF WE LOOK AT 4129 02:18:13,652 --> 02:18:15,453 SLIDE FOUR AND THEN FIVE, JUST 4130 02:18:15,453 --> 02:18:19,157 IN TERMS OF THE MUPS AND, YOU 4131 02:18:19,157 --> 02:18:22,127 KNOW, WE THINK ABOUT 4132 02:18:22,127 --> 02:18:24,829 CONSTRUCTION ACTIVITY AND THE 4133 02:18:24,829 --> 02:18:25,697 OBVIOUSLY ON HOUSING, JUST 4134 02:18:25,697 --> 02:18:26,665 HAVING HEARING FROM THE OFFICE 4135 02:18:26,665 --> 02:18:28,700 OF HOUSING, YOU KNOW, THE GREAT 4136 02:18:28,700 --> 02:18:29,934 NEED FOR ADDITIONAL SUPPLY, 4137 02:18:29,934 --> 02:18:31,536 MARKET RATE, THE GREAT NEED FOR 4138 02:18:31,536 --> 02:18:35,573 MORE AFFORDABLE HOUSING, YOU 4139 02:18:35,573 --> 02:18:38,677 KNOW, ALL THE COROLLARY IMPACTS 4140 02:18:38,677 --> 02:18:39,310 THAT GO ALONG WITH CONSTRUCTION, 4141 02:18:39,310 --> 02:18:40,378 WHETHER IT'S PERMIT FEES. 4142 02:18:40,378 --> 02:18:42,347 YESTERDAY, WE HEARD FROM SDOT. 4143 02:18:42,347 --> 02:18:43,848 THERE'S LESS STREET USE FEES 4144 02:18:43,848 --> 02:18:46,251 BECAUSE THERE'S LESS 4145 02:18:46,251 --> 02:18:46,885 CONSTRUCTION ACTIVITY HAPPENING 4146 02:18:46,885 --> 02:18:49,754 TO PAY FOR THOSE STREET USE 4147 02:18:49,754 --> 02:18:52,357 FEES, SALES TAXES EMPLOYMENT AND 4148 02:18:52,357 --> 02:18:56,361 SO ON. BUT, YOU KNOW, I THINK 4149 02:18:56,361 --> 02:18:58,363 YOU HAVE SDCI HAS THIS UNIQUE 4150 02:18:58,363 --> 02:19:01,666 SORT OF INSIGHT INTO OUR ECONOMY 4151 02:19:01,666 --> 02:19:03,134 BECAUSE YOU SEE EARLY ON BEFORE, 4152 02:19:03,134 --> 02:19:04,736 YOU KNOW, SOMEBODY BREAKS 4153 02:19:04,736 --> 02:19:06,938 GROUND, THERE'S YEARS OFTEN OF, 4154 02:19:06,938 --> 02:19:08,773 YOU KNOW, PERMIT REVIEWS THAT 4155 02:19:08,773 --> 02:19:10,909 HAPPEN. AND SO JUST COULD YOU 4156 02:19:10,909 --> 02:19:14,145 DESCRIBE IN GENERAL KIND OF 4157 02:19:14,145 --> 02:19:15,847 WHAT'S HAPPENING IN THE PERMIT? 4158 02:19:15,847 --> 02:19:19,117 IS THERE A CHANGE IN TYPES OF 4159 02:19:19,117 --> 02:19:19,751 THINGS THAT PEOPLE ARE? I MEAN, 4160 02:19:19,751 --> 02:19:21,186 OBVIOUSLY WE'RE NOT DOING 4161 02:19:21,186 --> 02:19:22,287 OFFICE. HAVEN'T BEEN DOING THAT 4162 02:19:22,287 --> 02:19:23,788 FOR A WHILE, BUT COULD YOU JUST 4163 02:19:23,788 --> 02:19:25,724 GENERALLY DESCRIBE WHAT'S 4164 02:19:25,724 --> 02:19:27,125 HAPPENING WITH PERMIT ACTIVITY? 4165 02:19:27,125 --> 02:19:30,361 -- YEAH. THANK YOU. 4166 02:19:30,361 --> 02:19:33,331 COUNCILMEMBER LIN IS VERY 4167 02:19:33,331 --> 02:19:33,832 CONCERNING TO US IN THE 4168 02:19:33,832 --> 02:19:36,234 DEPARTMENT. WHEN WE SEE THE 4169 02:19:36,234 --> 02:19:40,572 SCOPE AND THE VALUATION OF THE 4170 02:19:40,572 --> 02:19:42,474 PROJECTS DO NOT MEET WHAT THEY 4171 02:19:42,474 --> 02:19:47,045 WERE IN THE THE BOOM YEARS AND 4172 02:19:47,045 --> 02:19:50,248 THE THE TYPES OF PROJECTS ARE 4173 02:19:50,248 --> 02:19:52,217 SMALLER, LESS COMPLEX, AND THEY 4174 02:19:52,217 --> 02:19:56,388 HAVE, YOU KNOW, LESS VALUE ADDED 4175 02:19:56,388 --> 02:19:57,622 TO OUR PERMIT FEE COLLECTION 4176 02:19:57,622 --> 02:19:59,958 ASPECT. WE'RE WE'RE STRUGGLING 4177 02:19:59,958 --> 02:20:03,061 RIGHT NOW WITH THAT AS WE'RE 4178 02:20:03,061 --> 02:20:06,131 UNDERNEATH THE RECESSION LEVELS 4179 02:20:06,131 --> 02:20:10,335 FOR, FOR THE PERMIT FEE INCOME. 4180 02:20:10,335 --> 02:20:12,203 SO THAT IS VERY CONCERNING WITH 4181 02:20:12,203 --> 02:20:12,937 THE STAFFING LEVELS THAT WE'RE 4182 02:20:12,937 --> 02:20:15,340 CURRENTLY MANAGING OR STAFFING 4183 02:20:15,340 --> 02:20:20,879 UP WITH IT. WE WOULD ANTICIPATE 4184 02:20:20,879 --> 02:20:26,317 SOME SORT OF SLOW INCREASE IN 4185 02:20:26,317 --> 02:20:28,553 RECOVERY, WHICH I CAN HAVE MY 4186 02:20:28,553 --> 02:20:29,554 CHIEF ECONOMIC ECONOMIST COME UP 4187 02:20:29,554 --> 02:20:31,289 HERE AND GIVE YOU MORE OF A 4188 02:20:31,289 --> 02:20:33,124 DETAILED BRIEFING ON. BUT AT 4189 02:20:33,124 --> 02:20:35,493 THIS POINT IN TIME, YOU KNOW, 4190 02:20:35,493 --> 02:20:37,662 THIS IS THIS IS SOMETHING THAT 4191 02:20:37,662 --> 02:20:40,465 WE'RE TRYING TO TRYING TO WORK 4192 02:20:40,465 --> 02:20:43,034 AROUND AND ANTICIPATE WHEN. BUT 4193 02:20:43,034 --> 02:20:45,303 AT THIS POINT, WE'RE TRYING TO 4194 02:20:45,303 --> 02:20:46,671 DO WHAT'S BEST FOR THE 4195 02:20:46,671 --> 02:20:49,474 TAXPAYERS AND, AND PRESERVE THE 4196 02:20:49,474 --> 02:20:51,075 BALANCE OF THE FUND BALANCE THAT 4197 02:20:51,075 --> 02:20:54,846 WE HAVE LEFT. SO. 4198 02:20:54,846 --> 02:20:57,749 -- THANK YOU. AND CERTAINLY, 4199 02:20:57,749 --> 02:21:01,519 YEAH, IT'S PRETTY ALARMING AND 4200 02:21:01,519 --> 02:21:03,388 CONCERNING ON MANY DIFFERENT 4201 02:21:03,388 --> 02:21:05,590 LEVELS. YOU KNOW, THE REAL 4202 02:21:05,590 --> 02:21:06,758 ESTATE, THERE'S ALWAYS CYCLES 4203 02:21:06,758 --> 02:21:07,892 AND THE REAL ESTATE WORLD. CAN 4204 02:21:07,892 --> 02:21:12,096 YOU TALK ABOUT SORT OF HOW YOUR 4205 02:21:12,096 --> 02:21:13,531 PLANNING TO MANAGE THIS CURRENT 4206 02:21:13,531 --> 02:21:16,134 DOWNTURN? YOU KNOW, HOW YOU'VE 4207 02:21:16,134 --> 02:21:16,701 MANAGED STAFFING AND PRIOR 4208 02:21:16,701 --> 02:21:18,636 DOWNTURNS? I HEARD YOU SAY THAT, 4209 02:21:18,636 --> 02:21:20,939 YOU KNOW, THERE'S SOME 4210 02:21:20,939 --> 02:21:22,474 RESERVES. SO IF THE PERMITTING 4211 02:21:22,474 --> 02:21:23,408 STARTS TO TICK UP AND CERTAINLY, 4212 02:21:23,408 --> 02:21:25,844 YOU KNOW, THERE'S TALK ABOUT 4213 02:21:25,844 --> 02:21:27,579 THINGS LIKE THE MH AYE 4214 02:21:27,579 --> 02:21:29,180 ACCELERATOR AND HOPING TO GET 4215 02:21:29,180 --> 02:21:31,950 SOME PERMITS PULLED AND PEOPLE 4216 02:21:31,950 --> 02:21:34,152 BUILDING AGAIN. BUT COULD YOU 4217 02:21:34,152 --> 02:21:36,020 JUST TALK ABOUT SORT OF HOW 4218 02:21:36,020 --> 02:21:38,556 YOU'RE ANTICIPATING TO, TO 4219 02:21:38,556 --> 02:21:40,525 MANAGE BOTH THE DOWN CYCLE, BUT 4220 02:21:40,525 --> 02:21:41,693 ALSO IF, IF WE'RE ABLE TO GET 4221 02:21:41,693 --> 02:21:44,662 SOME CONSTRUCTION GOING AGAIN? 4222 02:21:44,662 --> 02:21:48,299 -- THANK YOU. THAT QUESTION IS 4223 02:21:48,299 --> 02:21:50,768 SOMETHING THAT WE ARE WORKING 4224 02:21:50,768 --> 02:21:54,005 ON. WE'RE CONSTANTLY LOOKING AT 4225 02:21:54,005 --> 02:21:56,474 THE PERMIT VOLUMES. AND, AND HOW 4226 02:21:56,474 --> 02:21:59,844 WE'RE CAN INCREASE OUR CAPACITY 4227 02:21:59,844 --> 02:22:03,915 WITH LESS STAFF MEMBERS. WE'RE 4228 02:22:03,915 --> 02:22:07,785 GOING THROUGH A LOT OF PROCESS 4229 02:22:07,785 --> 02:22:10,288 CHANGES THAT WERE WERE INCLUDING 4230 02:22:10,288 --> 02:22:12,857 ALL OF OUR DIRECTORS IN THE, IN 4231 02:22:12,857 --> 02:22:15,994 PROCESS CHANGE MANAGEMENT. 4232 02:22:15,994 --> 02:22:18,496 THERE'S THINGS ALONG THE LINE 4233 02:22:18,496 --> 02:22:23,635 THAT MAYBE ARE, WERE BEING 4234 02:22:23,635 --> 02:22:25,436 VETTED OUT BY THE STATE. AND 4235 02:22:25,436 --> 02:22:27,605 SOME OF THE REGULATIONS AND SOME 4236 02:22:27,605 --> 02:22:29,007 OF THE DESIGN REVIEW ASPECTS ARE 4237 02:22:29,007 --> 02:22:31,809 BEING, YOU KNOW, KIND OF 4238 02:22:31,809 --> 02:22:33,444 DEREGULATED ALMOST IN THIS 4239 02:22:33,444 --> 02:22:35,280 ASPECT FOR HOUSING. THE ONE 4240 02:22:35,280 --> 02:22:37,148 THING THAT WE'RE TRYING TO 4241 02:22:37,148 --> 02:22:40,752 CREATE IS A, WITH EXECUTIVE 4242 02:22:40,752 --> 02:22:43,621 ORDER ON HOUSING IS TO INCREASE 4243 02:22:43,621 --> 02:22:46,791 CAPACITY AND GETTING, GETTING 4244 02:22:46,791 --> 02:22:52,830 THE, THE PROJECTS THAT ARE THAT 4245 02:22:52,830 --> 02:22:54,232 WE CAN KIND OF SKIM OFF THE TOP. 4246 02:22:54,232 --> 02:22:57,068 AND THE SIMPLEST OF THE PROJECTS 4247 02:22:57,068 --> 02:22:59,370 AND GET THEM OUT THE DOOR 4248 02:22:59,370 --> 02:23:01,005 RESPONSIBLY, FASTER. SO THAT'S 4249 02:23:01,005 --> 02:23:02,240 WE'RE WORKING ON A LOT OF THOSE 4250 02:23:02,240 --> 02:23:04,676 AREAS 4251 02:23:04,676 --> 02:23:06,010 -- THANK YOU FOR THAT. AND 4252 02:23:06,010 --> 02:23:08,613 CERTAINLY SUPER EXCITED ABOUT 4253 02:23:08,613 --> 02:23:11,215 THE HOUSING OMBUDS. CERTAINLY 4254 02:23:11,215 --> 02:23:11,816 EXCITED ABOUT ANY ADDITIONAL 4255 02:23:11,816 --> 02:23:12,850 STREAMLINING WE CAN DO. I KNOW 4256 02:23:12,850 --> 02:23:15,520 IT CAN JUST BE A LITTLE BIT OF A 4257 02:23:15,520 --> 02:23:19,357 BITTER PILL FOR, FOR SOME OF OUR 4258 02:23:19,357 --> 02:23:19,958 HOUSING DEVELOPERS TO SWALLOW 4259 02:23:19,958 --> 02:23:21,960 JUST TO, YOU KNOW, HAVE TO GO 4260 02:23:21,960 --> 02:23:23,661 THROUGH LENGTHY PERMITTING AND 4261 02:23:23,661 --> 02:23:25,496 THEN ALSO TO PAY THOSE FEES. 4262 02:23:25,496 --> 02:23:27,732 AND, YOU KNOW, ANYTHING WE CAN 4263 02:23:27,732 --> 02:23:28,666 DO, I MEAN, I KNOW WE'VE TAKEN 4264 02:23:28,666 --> 02:23:30,535 EFFORTS, FOR EXAMPLE, WITH THE 4265 02:23:30,535 --> 02:23:34,539 ADUS TO, YOU KNOW, HAVE 4266 02:23:34,539 --> 02:23:36,374 PRE-APPROVED. AND AS YOU 4267 02:23:36,374 --> 02:23:37,542 MENTIONED, YOU KNOW, WE HAVE TO 4268 02:23:37,542 --> 02:23:40,078 HAVE MORE OBJECTIVE STANDARDS 4269 02:23:40,078 --> 02:23:41,346 FOR DESIGN REVIEW COMING FROM 4270 02:23:41,346 --> 02:23:43,081 THE NEW STATE LAW. WE'VE DONE 4271 02:23:43,081 --> 02:23:45,850 THINGS LIKE RAISING THRESHOLD 4272 02:23:45,850 --> 02:23:49,087 EXEMPTIONS TO, TO MINIMIZE THE 4273 02:23:49,087 --> 02:23:49,687 IMPACTS OF THAT ENVIRONMENTAL 4274 02:23:49,687 --> 02:23:51,289 REVIEW THAT JUST WEREN'T 4275 02:23:51,289 --> 02:23:53,358 PROVIDING SORT OF REAL BENEFIT 4276 02:23:53,358 --> 02:23:55,293 TO US BECAUSE WE HAVE, YOU KNOW, 4277 02:23:55,293 --> 02:23:57,362 STRONG STANDARDS IN OUR CODES. 4278 02:23:57,362 --> 02:23:58,262 AND, AND THERE'S JUST IT WAS 4279 02:23:58,262 --> 02:23:59,564 REDUNDANT. SO ANYTHING WE CAN DO 4280 02:23:59,564 --> 02:24:04,202 TO REDUCE THOSE REDUNDANCIES TO, 4281 02:24:04,202 --> 02:24:07,138 TO ALLOW FOR FASTER AND LESS 4282 02:24:07,138 --> 02:24:08,940 COSTLY PERMITTING PROCESS, 4283 02:24:08,940 --> 02:24:11,275 CERTAINLY, AND VERY SUPPORTIVE 4284 02:24:11,275 --> 02:24:15,380 OF. AND I SEE SOMEBODY WANTING 4285 02:24:15,380 --> 02:24:17,382 TO CHAT. 4286 02:24:17,382 --> 02:24:19,584 -- SO I JUST WANTED TO, TO ADD 4287 02:24:19,584 --> 02:24:22,053 ON THIS ON THIS THEME, THE 4288 02:24:22,053 --> 02:24:24,155 MAYOR'S OFFICE IS LEADING A 4289 02:24:24,155 --> 02:24:25,256 INTER-DEPARTMENTAL TEAM TO 4290 02:24:25,256 --> 02:24:26,290 REALLY FOCUS ON SOME OF THESE 4291 02:24:26,290 --> 02:24:27,558 THINGS. THEY HAVE ALL THE BIG 4292 02:24:27,558 --> 02:24:31,295 DEPARTMENTS INVOLVED. SDCI, OF 4293 02:24:31,295 --> 02:24:31,763 COURSE, DEPARTMENT OF 4294 02:24:31,763 --> 02:24:33,064 TRANSPORTATION, CITY LIGHT, 4295 02:24:33,064 --> 02:24:35,133 PUBLIC UTILITIES, THE FIRE 4296 02:24:35,133 --> 02:24:37,035 DEPARTMENT, AND ONE OF THE GOALS 4297 02:24:37,035 --> 02:24:38,870 OF THIS IS SORT OF TO ONE, TO 4298 02:24:38,870 --> 02:24:41,305 CREATE END TO END VISIBILITY. 4299 02:24:41,305 --> 02:24:43,107 THIS WAS A LIKE I WORKED, I 4300 02:24:43,107 --> 02:24:44,275 STARTED AS A LAND USE PLANNER. 4301 02:24:44,275 --> 02:24:45,476 SO THIS IS SORT OF WHERE I 4302 02:24:45,476 --> 02:24:47,378 STARTED MY CAREER IN THE PUBLIC 4303 02:24:47,378 --> 02:24:48,413 SECTOR. AND NOW HERE I AM THE 4304 02:24:48,413 --> 02:24:50,982 BUDGET DIRECTOR. BUT THIS, THIS 4305 02:24:50,982 --> 02:24:53,885 WAS SURPRISING TO ME TO LEARN 4306 02:24:53,885 --> 02:24:54,519 THAT CURRENTLY APPLICANTS NEED 4307 02:24:54,519 --> 02:24:55,820 30 PLUS PERMITS FROM EIGHT 4308 02:24:55,820 --> 02:24:58,256 DIFFERENT DEPARTMENTS TO BUILD 4309 02:24:58,256 --> 02:25:00,091 HOUSING IN THE CITY. SO THAT IS 4310 02:25:00,091 --> 02:25:01,092 ONE OF THE AREAS THAT ARE REALLY 4311 02:25:01,092 --> 02:25:04,495 BEING LOOKED AT, INCLUDING 4312 02:25:04,495 --> 02:25:05,263 REALLY FOCUSING ON STREAMLINING 4313 02:25:05,263 --> 02:25:06,597 THE SPEED OF RIGHT OF WAY AND 4314 02:25:06,597 --> 02:25:07,699 UTILITY PERMITTING, AS THOSE ARE 4315 02:25:07,699 --> 02:25:09,834 KIND OF THE LONGEST DURATION. SO 4316 02:25:09,834 --> 02:25:12,303 THERE IS SOME WORK UNDERWAY THAT 4317 02:25:12,303 --> 02:25:14,939 IS THE SDCI IS A KEY PARTNER IN, 4318 02:25:14,939 --> 02:25:16,340 BUT IS SOMEWHAT LIKE, AS YOU 4319 02:25:16,340 --> 02:25:18,676 MENTIONED, SOME OF THIS IS 4320 02:25:18,676 --> 02:25:22,113 OUTSIDE OF THEIR THEIR CONTROL. 4321 02:25:22,113 --> 02:25:24,449 -- THANK YOU. AND THANK YOU, 4322 02:25:24,449 --> 02:25:27,685 CHAIR. THAT'S ALL I HAVE FOR 4323 02:25:27,685 --> 02:25:27,885 NOW. 4324 02:25:27,885 --> 02:25:28,519 -- THANK YOU. COUNCILMEMBER LIN. 4325 02:25:28,519 --> 02:25:29,454 I DON'T SEE ANY OTHER HANDS UP. 4326 02:25:29,454 --> 02:25:32,323 SO IF YOU DO WANT TO SPEAK NOW, 4327 02:25:32,323 --> 02:25:33,391 AT ANY POINT DURING THIS 4328 02:25:33,391 --> 02:25:34,092 COMMITTEE, NOW IS THE TIME TO 4329 02:25:34,092 --> 02:25:35,960 GET IN LINE. COUNCILMEMBER 4330 02:25:35,960 --> 02:25:37,495 FOSTER FOLLOWED BY COUNCILMEMBER 4331 02:25:37,495 --> 02:25:38,963 KETTLE. 4332 02:25:38,963 --> 02:25:40,198 -- THANK YOU SO MUCH, CHAIR. I 4333 02:25:40,198 --> 02:25:41,666 APPRECIATE THAT. I WANTED TO 4334 02:25:41,666 --> 02:25:43,267 JUST TAKE A SECOND TO FIRST 4335 02:25:43,267 --> 02:25:45,536 EXPRESS MY APPRECIATION TO THE 4336 02:25:45,536 --> 02:25:46,938 MAYOR'S OFFICE FOR THE HOUSING 4337 02:25:46,938 --> 02:25:47,872 OMBUDSMAN POSITION. I KNOW 4338 02:25:47,872 --> 02:25:48,506 COUNCILMEMBER LIN JUST SPOKE TO 4339 02:25:48,506 --> 02:25:50,775 IT, BUT I DO THINK I'M REALLY 4340 02:25:50,775 --> 02:25:52,009 LOOKING FORWARD TO SEEING THE 4341 02:25:52,009 --> 02:25:53,478 IMPACT THAT THAT POSITION IS 4342 02:25:53,478 --> 02:25:55,213 GOING TO HAVE FOR OUR NONPROFIT 4343 02:25:55,213 --> 02:25:56,881 HOUSING PROVIDERS AS THEY SEEK 4344 02:25:56,881 --> 02:25:58,683 TO NAVIGATE THE 30 PLUS PERMITS 4345 02:25:58,683 --> 02:25:59,984 IN THE SYSTEM AND OTHER WORK 4346 02:25:59,984 --> 02:26:01,385 THAT I KNOW YOU ARE WORKING ON 4347 02:26:01,385 --> 02:26:02,386 CHANGING AND MAKING EASIER TO 4348 02:26:02,386 --> 02:26:03,454 NAVIGATE, BUT I AM REALLY 4349 02:26:03,454 --> 02:26:04,155 LOOKING FORWARD TO THAT. I THINK 4350 02:26:04,155 --> 02:26:05,556 IT'S GOING TO BE VERY 4351 02:26:05,556 --> 02:26:07,091 MEANINGFUL FOR FOLKS. I WANTED 4352 02:26:07,091 --> 02:26:08,926 TO ASK, JUST TURNING TO SOME OF 4353 02:26:08,926 --> 02:26:13,931 THE IMPLEMENTATION IN TERMS OF 4354 02:26:13,931 --> 02:26:14,465 THE THE POSITIONS AND THE 4355 02:26:14,465 --> 02:26:16,434 FUNDING FOR THE IMPLEMENTATION 4356 02:26:16,434 --> 02:26:19,203 OF THE, THE RENTAL, I'M JUST 4357 02:26:19,203 --> 02:26:20,438 GONNA CALL IT JUNK FEES, AS 4358 02:26:20,438 --> 02:26:22,039 WE'VE BEEN CALLING IT. BUT CAN 4359 02:26:22,039 --> 02:26:23,207 WE JUST CAN YOU SPEAK A LITTLE 4360 02:26:23,207 --> 02:26:26,277 BIT TO THE HOW YOU WORK TO 4361 02:26:26,277 --> 02:26:28,312 DETERMINE THE APPROPRIATE SIZE 4362 02:26:28,312 --> 02:26:30,181 OF STAFFING TO SUCCESSFULLY 4363 02:26:30,181 --> 02:26:35,019 IMPLEMENT THAT ORDINANCE 4364 02:26:35,019 --> 02:26:35,586 -- THIS IS SOMETHING THAT I 4365 02:26:35,586 --> 02:26:37,255 THINK, JEFF OVER HERE COULD 4366 02:26:37,255 --> 02:26:38,022 ANSWER. 4367 02:26:38,022 --> 02:26:38,356 -- JEFF, IF. 4368 02:26:38,356 --> 02:26:39,090 -- I'M HAPPY TO 4369 02:26:39,090 --> 02:26:39,423 -- [LAUGHTER] 4370 02:26:39,423 --> 02:26:40,124 -- DO IT. YEAH. IF WE DON'T HAVE 4371 02:26:40,124 --> 02:26:42,226 THE RIGHT. OH, GO AHEAD, CHAIR, 4372 02:26:42,226 --> 02:26:42,560 I APOLOGIZE. 4373 02:26:42,560 --> 02:26:44,228 -- USUALLY WE ONLY HAVE TWO. WE 4374 02:26:44,228 --> 02:26:47,765 HAD A SPECIAL EXCEPTION THIS 4375 02:26:47,765 --> 02:26:49,000 YEAR WITH HSD TO HAVE CHRIS 4376 02:26:49,000 --> 02:26:50,034 CLASEN JOIN US. JEFF, IF YOU 4377 02:26:50,034 --> 02:26:51,369 WOULD LIKE TO JOIN US AT THE 4378 02:26:51,369 --> 02:26:52,737 TABLE, YOU ARE MORE THAN 4379 02:26:52,737 --> 02:26:53,004 WELCOME. 4380 02:26:53,004 --> 02:26:53,571 -- AND I COULD I COULD 4381 02:26:53,571 --> 02:26:53,905 -- [LAUGHTER] 4382 02:26:53,905 --> 02:26:55,973 -- GIVE IT A SHOT. 4383 02:26:55,973 --> 02:26:56,808 -- I'M SURE I'M HAPPY TO TAKE 4384 02:26:56,808 --> 02:26:58,042 IT IN THE ONE NOTE, IF THAT'S 4385 02:26:58,042 --> 02:26:59,744 EASIER. 4386 02:26:59,744 --> 02:27:00,478 -- WHATEVER IS. IF JEFF, YOU'RE 4387 02:27:00,478 --> 02:27:02,480 HERE, IF YOU WANT TO SPEAK, COME 4388 02:27:02,480 --> 02:27:05,750 UP NOW. OTHERWISE, WE'RE MOVING 4389 02:27:05,750 --> 02:27:07,151 ON. NOW IS DECISION TIME. WHAT 4390 02:27:07,151 --> 02:27:13,624 ARE WE DOING? MOVING. THANK YOU. 4391 02:27:13,624 --> 02:27:18,296 AND COUNCILMEMBER FOSTER, TAKE 4392 02:27:18,296 --> 02:27:18,563 IT AWAY. 4393 02:27:18,563 --> 02:27:21,465 -- JEFF SDCI, CODE COMPLIANCE 4394 02:27:21,465 --> 02:27:26,437 DIRECTOR I MEAN, TO BE HONEST, 4395 02:27:26,437 --> 02:27:27,838 WE DON'T. WE DON'T KNOW 4396 02:27:27,838 --> 02:27:29,507 EXACTLY. WE BOTH BASICALLY 4397 02:27:29,507 --> 02:27:32,076 LOOKED AT PAST EXPERIENCE WITH 4398 02:27:32,076 --> 02:27:32,643 IMPLEMENTATION OF OTHER NEW 4399 02:27:32,643 --> 02:27:34,111 REGULATIONS, LIKE WHEN ECONOMIC 4400 02:27:34,111 --> 02:27:36,380 DISPLACEMENT RELOCATION 4401 02:27:36,380 --> 02:27:37,615 ASSISTANCE CAME IN AND SAID, 4402 02:27:37,615 --> 02:27:39,083 WHAT, WHAT, HOW WAS THAT IMPACT 4403 02:27:39,083 --> 02:27:41,385 ON OUR STAFFING AND OUR WORKLOAD 4404 02:27:41,385 --> 02:27:44,655 AND YOU KNOW, TOOK OUR BEST 4405 02:27:44,655 --> 02:27:45,256 PROJECTION OF WHAT WE THOUGHT 4406 02:27:45,256 --> 02:27:48,292 THIS WOULD LOOK LIKE. THAT'S 4407 02:27:48,292 --> 02:27:50,661 REALLY ABOUT ALL THAT COMES TO. 4408 02:27:50,661 --> 02:27:52,597 -- THANK YOU. AND I'M HAPPY TO 4409 02:27:52,597 --> 02:27:53,497 DO. I THINK WE'LL TAKE THIS ONE 4410 02:27:53,497 --> 02:27:56,200 OVER TO THE ONE NOTE FOR FOLLOW 4411 02:27:56,200 --> 02:27:57,301 UP. I JUST OBVIOUSLY IS REALLY 4412 02:27:57,301 --> 02:27:58,703 EXCITED TO MAKE SURE THAT WE 4413 02:27:58,703 --> 02:27:59,337 IMPLEMENT THIS AND WE IMPLEMENT 4414 02:27:59,337 --> 02:28:01,305 IT WELL AND WANT TO MAKE SURE WE 4415 02:28:01,305 --> 02:28:02,406 HAVE THE APPROPRIATE STAFFING 4416 02:28:02,406 --> 02:28:05,042 LEVELS AND TAKE INTO 4417 02:28:05,042 --> 02:28:05,676 CONSIDERATION ANYTHING THAT WE 4418 02:28:05,676 --> 02:28:08,379 WE NEED TO BE LOOKING AT THERE. 4419 02:28:08,379 --> 02:28:09,413 THE OTHER QUESTION THAT I HAD, I 4420 02:28:09,413 --> 02:28:10,982 THINK I HEARD A COMMENT EARLIER. 4421 02:28:10,982 --> 02:28:12,183 THANK YOU. JEFF, SORRY TO HAVE 4422 02:28:12,183 --> 02:28:13,584 YOU COME UP FOR ONE BRIEF 4423 02:28:13,584 --> 02:28:15,419 QUESTION, BUT THE THE OTHER 4424 02:28:15,419 --> 02:28:16,220 COMMENT THAT I THINK I HEARD 4425 02:28:16,220 --> 02:28:18,823 FROM YOU, DIRECTOR, WAS ABOUT 4426 02:28:18,823 --> 02:28:20,691 GETTING THE PERMIT COSTS CLOSER 4427 02:28:20,691 --> 02:28:23,461 TO WHERE THEY WERE IN 2020. OR 4428 02:28:23,461 --> 02:28:26,264 YOU SORT OF SPOKE TO THIS 4429 02:28:26,264 --> 02:28:27,798 PRE-PANDEMIC LEVELS. CAN YOU ADD 4430 02:28:27,798 --> 02:28:29,433 JUST ANY, ANY CLARITY OR COLOR 4431 02:28:29,433 --> 02:28:31,269 THERE IN TERMS OF SORT OF OUR 4432 02:28:31,269 --> 02:28:38,209 OVERALL COSTS? THERE? 4433 02:28:38,209 --> 02:28:39,243 -- I BELIEVE YOU MAY HAVE OR 4434 02:28:39,243 --> 02:28:41,379 LET'S SEE, WHERE WERE WE? I MAY 4435 02:28:41,379 --> 02:28:44,415 HAVE BEEN REFERRING TO THE 4436 02:28:44,415 --> 02:28:46,584 MECHANICAL AND REFRIGERATION FEE 4437 02:28:46,584 --> 02:28:48,686 ONLY. OKAY. BECAUSE WE HAD CUT 4438 02:28:48,686 --> 02:28:51,289 THAT SIGNIFICANTLY, ABOUT 50% 4439 02:28:51,289 --> 02:28:55,393 BECAUSE TECHNOLOGY HAD CHANGED 4440 02:28:55,393 --> 02:28:57,495 AND INSTALLATION PATTERNS HAD 4441 02:28:57,495 --> 02:28:58,863 CHANGED. AND WE WERE JUST 4442 02:28:58,863 --> 02:29:03,834 STARTING TO COLLECT HEAVILY ON 4443 02:29:03,834 --> 02:29:04,969 THAT, ALMOST OVER COLLECTING. 4444 02:29:04,969 --> 02:29:07,872 AND SO WE CUT BACK ON THOSE FEES 4445 02:29:07,872 --> 02:29:12,543 SIGNIFICANTLY. AND NOW CURRENTLY 4446 02:29:12,543 --> 02:29:14,712 WE ARE SEEING THOSE COST CENTERS 4447 02:29:14,712 --> 02:29:16,981 DECLINE. SO IN ORDER TO MAINTAIN 4448 02:29:16,981 --> 02:29:19,050 THE COST OF, YOU KNOW, 4449 02:29:19,050 --> 02:29:20,418 RECOVERING THE COST OF 4450 02:29:20,418 --> 02:29:21,052 PERFORMING THOSE INSPECTIONS AND 4451 02:29:21,052 --> 02:29:23,587 THOSE REVIEWS, WE JUST NEED TO 4452 02:29:23,587 --> 02:29:24,555 INCREASE IT SOME MORE TO KEEP 4453 02:29:24,555 --> 02:29:26,290 KEEP UP WITH IT. BUT WE WERE 4454 02:29:26,290 --> 02:29:27,491 AFRAID OF OVER COLLECTING, SO WE 4455 02:29:27,491 --> 02:29:29,493 HAD TO REDUCE THE, THE FEES AT 4456 02:29:29,493 --> 02:29:31,462 THAT TIME. AND THAT WAS JUST FOR 4457 02:29:31,462 --> 02:29:33,731 THOSE TWO COST CENTERS. 4458 02:29:33,731 --> 02:29:36,867 -- THANK YOU SO MUCH. THANK YOU. 4459 02:29:36,867 --> 02:29:37,101 CHAIR. 4460 02:29:37,101 --> 02:29:38,502 -- THANK YOU, COUNCILMEMBER 4461 02:29:38,502 --> 02:29:39,637 FOSTER COUNCILMEMBER KETTLE. IF 4462 02:29:39,637 --> 02:29:40,905 OTHERS WANT TO SPEAK, PLEASE 4463 02:29:40,905 --> 02:29:42,173 RAISE YOUR HAND NOW. THANK YOU. 4464 02:29:42,173 --> 02:29:44,108 -- THANK YOU. CHAIR, I JUST 4465 02:29:44,108 --> 02:29:46,010 REALLY QUICK. THANK YOU, MR. 4466 02:29:46,010 --> 02:29:48,179 STEELE AND MR. MITCHELL, AND FOR 4467 02:29:48,179 --> 02:29:49,246 JOINING THE TABLE, MR. TALENT AS 4468 02:29:49,246 --> 02:29:53,017 WELL. LATE BREAKING ADDITION 4469 02:29:53,017 --> 02:29:56,587 LOOKING AT THE BRIEFING AND YOU 4470 02:29:56,587 --> 02:29:59,957 KNOW, OBVIOUSLY A LOT OF THIS IS 4471 02:29:59,957 --> 02:30:01,058 THERE'S A BIT OF A IT IS WHAT 4472 02:30:01,058 --> 02:30:03,627 IT IS SITUATION IN TERMS OF THE 4473 02:30:03,627 --> 02:30:05,363 STAFFING. AND YOU KNOW, HOW MANY 4474 02:30:05,363 --> 02:30:06,731 THE PERMITS, THE MONEY COMING IN 4475 02:30:06,731 --> 02:30:10,534 AND SO FORTH. IT'S JUST THE 4476 02:30:10,534 --> 02:30:12,570 SYSTEM. SO I APPRECIATE THE 4477 02:30:12,570 --> 02:30:13,671 RIGHT SIZING POINTS THAT YOU'RE 4478 02:30:13,671 --> 02:30:15,506 TALKING ABOUT. GIVEN THE 4479 02:30:15,506 --> 02:30:16,774 CONDITIONS. SO THANK YOU FOR THE 4480 02:30:16,774 --> 02:30:18,642 WORK THAT'S BEEN DONE ON THAT 4481 02:30:18,642 --> 02:30:21,946 PART. THE OMBUDS SUPPORT PIECE 4482 02:30:21,946 --> 02:30:24,115 IS SUPER IMPORTANT. I WOULD SAY 4483 02:30:24,115 --> 02:30:25,750 IT'S NEEDED FOR EVERYBODY, NOT 4484 02:30:25,750 --> 02:30:26,884 JUST AFFORDABLE HOUSING. 4485 02:30:26,884 --> 02:30:28,185 ANYTHING THAT CAN HELP. AND THIS 4486 02:30:28,185 --> 02:30:30,888 KIND OF GOES TO THE BIGGER 4487 02:30:30,888 --> 02:30:32,690 PICTURE PIECE IN TERMS OF THE 4488 02:30:32,690 --> 02:30:33,991 MESSAGES THAT WE'RE SENDING, 4489 02:30:33,991 --> 02:30:34,925 YOU KNOW, HAVING A STRONG 4490 02:30:34,925 --> 02:30:36,594 OMBUDS, YOU KNOW, SOME TYPE OF 4491 02:30:36,594 --> 02:30:38,629 ASSIST PROGRAM TO NAVIGATE, I 4492 02:30:38,629 --> 02:30:40,398 THINK, YOU KNOW, SETS THE TONE. 4493 02:30:40,398 --> 02:30:42,032 AND I THINK THE TONE IS REALLY 4494 02:30:42,032 --> 02:30:43,234 IMPORTANT IN THIS CITY. AND 4495 02:30:43,234 --> 02:30:45,002 IT'S NOT NECESSARILY BEEN WHERE 4496 02:30:45,002 --> 02:30:48,005 IT NEEDS TO BE. BUT I THINK WE 4497 02:30:48,005 --> 02:30:50,241 COULD DO BETTER. AND BY THE WAY, 4498 02:30:50,241 --> 02:30:52,176 THIS OMBUDS PIECE COULD BE FOR 4499 02:30:52,176 --> 02:30:53,677 ANY NEW REGULATION IN TERMS OF 4500 02:30:53,677 --> 02:30:55,179 THE DIFFICULTIES THAT IT MAY OR 4501 02:30:55,179 --> 02:30:57,748 MAY NOT PRESENT. SO THIS KIND OF 4502 02:30:57,748 --> 02:30:58,749 APPROACH AND BUT I BRING THE 4503 02:30:58,749 --> 02:31:00,384 TONE PIECE UP BECAUSE I'VE HAD 4504 02:31:00,384 --> 02:31:02,253 MORE THAN ONE CONVERSATION WITH 4505 02:31:02,253 --> 02:31:03,587 A DEVELOPER WHO WAS LOOKING TO 4506 02:31:03,587 --> 02:31:08,893 ADD TO SLIDES FOUR AND FIVE IN 4507 02:31:08,893 --> 02:31:14,632 TERMS OF APPLICATIONS. AND SO 4508 02:31:14,632 --> 02:31:15,266 FORTH, THAT THEY WANTED TO GO 4509 02:31:15,266 --> 02:31:16,133 AHEAD, BUT FUNDERS WEREN'T GOING 4510 02:31:16,133 --> 02:31:17,768 TO INVEST IN SEATTLE BECAUSE, 4511 02:31:17,768 --> 02:31:19,837 YOU KNOW, THE TONE WAS BAD. THE 4512 02:31:19,837 --> 02:31:22,273 MESSAGING WAS BAD. AND I THINK 4513 02:31:22,273 --> 02:31:23,074 WE SHOULD OWN IT. I THINK WE 4514 02:31:23,074 --> 02:31:24,575 SHOULD OWN IT AS A COUNCIL. I 4515 02:31:24,575 --> 02:31:28,179 THINK WE SHOULD OWN AS CITY HALL 4516 02:31:28,179 --> 02:31:28,846 OVERALL, BECAUSE I'VE HAD TOO 4517 02:31:28,846 --> 02:31:29,980 MANY CONVERSATIONS WHERE YOU 4518 02:31:29,980 --> 02:31:31,515 KNOW, I'M DISTRICT SEVEN, WE 4519 02:31:31,515 --> 02:31:33,617 HAVE THE 21 BOSTON SAFEWAY 4520 02:31:33,617 --> 02:31:35,352 PROJECT, 325 APARTMENTS THAT ARE 4521 02:31:35,352 --> 02:31:38,289 THERE NOW. WE COULD HAVE EASILY 4522 02:31:38,289 --> 02:31:40,124 HAD A STARTUP IN MAGNOLIA AND 4523 02:31:40,124 --> 02:31:41,759 ONE IN CAPITOL HILL. VERY 4524 02:31:41,759 --> 02:31:43,060 SIMILAR PROJECTS, BUT THEY'RE 4525 02:31:43,060 --> 02:31:45,229 DEAD. WHY ARE THEY DEAD? BECAUSE 4526 02:31:45,229 --> 02:31:49,033 THE TONE AND WHAT WE'VE DONE AS 4527 02:31:49,033 --> 02:31:50,901 A CITY GOVERNMENT AND WHAT WE 4528 02:31:50,901 --> 02:31:52,770 REALLY NEED IS STABILITY. WHAT 4529 02:31:52,770 --> 02:31:54,738 WE NEED IS REALLY 4530 02:31:54,738 --> 02:31:57,508 PREDICTABILITY, SAFETY IS REALLY 4531 02:31:57,508 --> 02:32:02,012 IMPORTANT, AND POSITIVITY AND 4532 02:32:02,012 --> 02:32:02,646 LEADERSHIP. I'M JUST SAYING 4533 02:32:02,646 --> 02:32:03,314 THIS OUT LOUD. OBVIOUSLY, I'M 4534 02:32:03,314 --> 02:32:05,349 NOT EVEN GOING TO ASK FOR AN 4535 02:32:05,349 --> 02:32:07,785 ANSWER BECAUSE DIRECTOR PANUCCI 4536 02:32:07,785 --> 02:32:08,719 IS REPRESENTING THE BUDGET 4537 02:32:08,719 --> 02:32:10,054 ASPECTS OF THIS. YOU KNOW, THE 4538 02:32:10,054 --> 02:32:13,123 ONES AND ZEROS, THE NUTS AND 4539 02:32:13,123 --> 02:32:14,725 BOLTS. YOU'RE ON THE BACK END. 4540 02:32:14,725 --> 02:32:16,093 BUT WE AS LEADERS OF THE CITY, 4541 02:32:16,093 --> 02:32:17,828 ACROSS THE EXECUTIVE AND THE 4542 02:32:17,828 --> 02:32:19,230 LEGISLATIVE BRANCHES NEED TO DO 4543 02:32:19,230 --> 02:32:20,698 BETTER BECAUSE AT THE END OF THE 4544 02:32:20,698 --> 02:32:22,233 DAY, YOU KNOW WHAT THAT 4545 02:32:22,233 --> 02:32:25,136 TRANSLATES TO? LET'S JUST SAY 4546 02:32:25,136 --> 02:32:26,203 THEY'RE HAVING 325 APARTMENTS 4547 02:32:26,203 --> 02:32:28,005 EACH, JUST LIKE THE 21 BOSTON 4548 02:32:28,005 --> 02:32:33,844 QUEEN ANNE PROJECT. THAT'S 650 4549 02:32:33,844 --> 02:32:35,679 UNITS GONE. GONE. AND THEY COULD 4550 02:32:35,679 --> 02:32:37,581 HAVE EASILY BEEN THERE, BUT 4551 02:32:37,581 --> 02:32:40,384 THEY'RE NOT THANK YOU. THANK 4552 02:32:40,384 --> 02:32:42,686 YOU, CHAIR. 4553 02:32:42,686 --> 02:32:44,955 -- THANK YOU. COUNCILMEMBER 4554 02:32:44,955 --> 02:32:46,090 KETTLE DOES THE. SO FOR 4555 02:32:46,090 --> 02:32:47,424 EVERYONE, THE LAST TWO GROUPS 4556 02:32:47,424 --> 02:32:48,092 THAT ARE PRESENTING TODAY, I'M 4557 02:32:48,092 --> 02:32:49,193 GOING TO FACILITATE. I WILL 4558 02:32:49,193 --> 02:32:50,427 ALWAYS CALL ON THE COMMITTEE 4559 02:32:50,427 --> 02:32:52,163 TABLE. YOU DON'T NEED TO 4560 02:32:52,163 --> 02:32:52,796 INTERRUPT. COMMITTEE TABLE. DO 4561 02:32:52,796 --> 02:32:54,298 YOU HAVE ANYTHING TO ADD. 4562 02:32:54,298 --> 02:32:59,970 -- OH, OKAY. SURE. I JUST WANTED 4563 02:32:59,970 --> 02:33:01,805 TO SAY THAT I'M THIS OMBUD 4564 02:33:01,805 --> 02:33:03,908 POSITION IS EXCITING TO ME TOO. 4565 02:33:03,908 --> 02:33:05,676 I THINK I'VE SEEN A LOT OF 4566 02:33:05,676 --> 02:33:07,845 SUCCESS FROM THE SMALL BUSINESS 4567 02:33:07,845 --> 02:33:10,481 PERMITTING AND CULTURAL SPACE 4568 02:33:10,481 --> 02:33:12,650 PERMITTING NAVIGATOR THAT WE 4569 02:33:12,650 --> 02:33:15,553 HAVE. I LIVE DOWNTOWN AND I'VE 4570 02:33:15,553 --> 02:33:16,554 EVER SINCE WE REALLY IMPLEMENTED 4571 02:33:16,554 --> 02:33:18,656 THAT POSITION, I'VE SEEN 4572 02:33:18,656 --> 02:33:20,024 DOWNTOWN CHANGE A LOT WITH A LOT 4573 02:33:20,024 --> 02:33:22,359 OF ACTIVE USE OF VACANT 4574 02:33:22,359 --> 02:33:22,993 STOREFRONTS AND EVERYTHING. AND 4575 02:33:22,993 --> 02:33:24,428 I THINK IT'S WORKED REALLY WELL. 4576 02:33:24,428 --> 02:33:26,263 SO I THINK THIS HOUSING OMBUD 4577 02:33:26,263 --> 02:33:28,933 HAS A LOT OF POTENTIAL. 4578 02:33:28,933 --> 02:33:29,500 -- THANK YOU. COUNCILMEMBER 4579 02:33:29,500 --> 02:33:30,768 KETTLE ANY LAST WORDS? WE'RE 4580 02:33:30,768 --> 02:33:31,835 GOING TO MOVE ON TO 4581 02:33:31,835 --> 02:33:35,339 COUNCILMEMBER RINCK. THANK YOU. 4582 02:33:35,339 --> 02:33:36,574 -- THANK YOU, CHAIR STRAUSS. AND 4583 02:33:36,574 --> 02:33:38,042 I WANT TO THANK YOU ACTUALLY FOR 4584 02:33:38,042 --> 02:33:39,543 BRINGING UP THAT PERMITTING 4585 02:33:39,543 --> 02:33:41,245 POSITION FOR SMALL BUSINESSES. I 4586 02:33:41,245 --> 02:33:42,947 ACTUALLY HAD A SIT DOWN WITH A 4587 02:33:42,947 --> 02:33:46,016 NUMBER OF OUR LOCAL RESTAURANTS 4588 02:33:46,016 --> 02:33:46,650 EARLIER THIS YEAR, AND I ASKED 4589 02:33:46,650 --> 02:33:48,385 THEM, WHAT IS ONE THING THAT THE 4590 02:33:48,385 --> 02:33:49,520 CITY IS DOING WELL? AND PEOPLE 4591 02:33:49,520 --> 02:33:51,155 ACTUALLY LIFTED UP THIS 4592 02:33:51,155 --> 02:33:51,789 PARTICULAR PERMITTING PROGRAM AS 4593 02:33:51,789 --> 02:33:53,090 ONE THING THAT HAS REALLY 4594 02:33:53,090 --> 02:33:53,757 DELIVERED MEANINGFUL RESULTS, 4595 02:33:53,757 --> 02:33:55,526 AND THEY WOULD LOVE TO SEE 4596 02:33:55,526 --> 02:33:56,794 REPLICATED AND EXPANDED UPON. SO 4597 02:33:56,794 --> 02:33:58,262 I'M GLAD THAT CAME UP 4598 02:33:58,262 --> 02:33:59,997 ORGANICALLY TO BE ABLE TO GIVE 4599 02:33:59,997 --> 02:34:01,198 THAT OPPORTUNITY TO HIGHLIGHT, 4600 02:34:01,198 --> 02:34:02,166 AND I WANT TO THANK THIS 4601 02:34:02,166 --> 02:34:04,902 OPPORTUNITY TO THANK SDCI FOR 4602 02:34:04,902 --> 02:34:07,738 WORKING WITH MY OFFICE TO 4603 02:34:07,738 --> 02:34:08,272 EXPLORE TENANT RELOCATION 4604 02:34:08,272 --> 02:34:08,906 ASSISTANCE OPTIONS, AND HOW WE 4605 02:34:08,906 --> 02:34:10,341 CAN ENSURE THAT WE'RE MEETING 4606 02:34:10,341 --> 02:34:11,709 THE NEEDS OF OUR RENTER 4607 02:34:11,709 --> 02:34:12,610 COMMUNITY, WHO MAKE UP THE 4608 02:34:12,610 --> 02:34:14,478 MAJORITY OF THOSE LIVING IN 4609 02:34:14,478 --> 02:34:15,312 SEATTLE. AND IN ADDITIONAL. 4610 02:34:15,312 --> 02:34:17,081 THANK YOU FOR BEING SO 4611 02:34:17,081 --> 02:34:19,083 RESPONSIVE. WHEN MY OFFICE 4612 02:34:19,083 --> 02:34:21,051 RECEIVES DIRECT CONSTITUENT 4613 02:34:21,051 --> 02:34:21,619 PERMITTING AND CONSTRUCTION 4614 02:34:21,619 --> 02:34:22,620 QUESTIONS OR FEEDBACK. SPECIAL 4615 02:34:22,620 --> 02:34:25,155 SHOUT OUT TO SDCI LIAISON 4616 02:34:25,155 --> 02:34:27,658 CHRISTINA FOR BEING INCREDIBLY 4617 02:34:27,658 --> 02:34:28,792 RESPONSIVE AND HELPFUL, 4618 02:34:28,792 --> 02:34:30,628 ESPECIALLY AS WE'RE DIVING INTO 4619 02:34:30,628 --> 02:34:31,762 THESE COMPLEX ISSUES. I MAY NOT 4620 02:34:31,762 --> 02:34:32,663 ALWAYS LOVE THE ANSWER I GET, 4621 02:34:32,663 --> 02:34:34,932 BUT I APPRECIATE GETTING AN 4622 02:34:34,932 --> 02:34:37,534 ANSWER. SO THANK YOU AND YOUR 4623 02:34:37,534 --> 02:34:38,669 TEAM FOR ALL OF THAT WORK. A 4624 02:34:38,669 --> 02:34:40,004 COUPLE OF QUESTIONS FOR TODAY, 4625 02:34:40,004 --> 02:34:42,539 AND I THINK A COUPLE OF THE 4626 02:34:42,539 --> 02:34:43,173 QUESTIONS THAT HAVE ALREADY BEEN 4627 02:34:43,173 --> 02:34:43,974 ASKED HAVE TOUCHED ON THESE 4628 02:34:43,974 --> 02:34:46,510 POINTS, BUT I WANT TO FOCUS IN 4629 02:34:46,510 --> 02:34:48,045 ON THESE POINTS AGAIN, JUST FOR 4630 02:34:48,045 --> 02:34:51,048 THE PURPOSES OF CLARITY MOVING 4631 02:34:51,048 --> 02:34:54,184 FORWARD, PARTICULARLY GIVEN THE 4632 02:34:54,184 --> 02:34:54,652 CHALLENGING ECONOMIC 4633 02:34:54,652 --> 02:34:55,286 CIRCUMSTANCES WE FIND OURSELVES 4634 02:34:55,286 --> 02:34:57,688 IN. I KNOW I'VE SPOKEN AT 4635 02:34:57,688 --> 02:34:59,757 LENGTH ABOUT MY CONCERN ABOUT 4636 02:34:59,757 --> 02:35:01,625 THE DROP OFF IN PERMITS ACROSS 4637 02:35:01,625 --> 02:35:03,394 THE CITY, AND SO MY MY QUESTION 4638 02:35:03,394 --> 02:35:05,863 IS, CONSIDERING THE CURRENT 4639 02:35:05,863 --> 02:35:06,697 ECONOMIC ENVIRONMENT CREATING A 4640 02:35:06,697 --> 02:35:09,366 GREAT BARRIER FOR DEVELOPMENT, 4641 02:35:09,366 --> 02:35:11,402 HOW CONFIDENT IS SDCI THAT 4642 02:35:11,402 --> 02:35:13,771 ADDITIONAL STAFFING CUTS AND 4643 02:35:13,771 --> 02:35:14,838 FREE FEE INCREASES WON'T BE 4644 02:35:14,838 --> 02:35:19,543 NECESSARY AGAIN IN THE COMING 4645 02:35:19,543 --> 02:35:19,777 YEARS? 4646 02:35:19,777 --> 02:35:23,881 -- TO 4647 02:35:23,881 --> 02:35:26,050 -- THANK YOU FOR THAT QUESTION. 4648 02:35:26,050 --> 02:35:26,684 COUNCILMEMBER RINCK. I BELIEVE 4649 02:35:26,684 --> 02:35:29,520 THAT WE'RE CAUTIOUSLY OPTIMISTIC 4650 02:35:29,520 --> 02:35:31,655 THAT WE'VE REACHED A POINT WHERE 4651 02:35:31,655 --> 02:35:33,691 WE DON'T HAVE TO SHED ANY MORE 4652 02:35:33,691 --> 02:35:36,760 POSITIONS. WE ARE ARE HOLDING ON 4653 02:35:36,760 --> 02:35:38,562 TO THE FUND BALANCE, AND IT'S 4654 02:35:38,562 --> 02:35:43,667 WITH ITS CURRENT REQUESTS FOR 4655 02:35:43,667 --> 02:35:45,736 THE 7% FEE INCREASE, IT WILL 4656 02:35:45,736 --> 02:35:48,238 ALLOW THE STAFFING TO BE 4657 02:35:48,238 --> 02:35:49,773 MAINTAINED THROUGH THE NEXT TWO 4658 02:35:49,773 --> 02:35:54,178 YEARS. AT THAT LEVEL. NOW, ALL 4659 02:35:54,178 --> 02:35:58,082 BETS ARE OFF IF THERE'S NOT SOME 4660 02:35:58,082 --> 02:36:00,584 SPURRING OF THE ECONOMIC ENGINE 4661 02:36:00,584 --> 02:36:03,587 THAT DRIVES THE CONSTRUCTION 4662 02:36:03,587 --> 02:36:05,355 INDUSTRY. SO WE'RE BUT WE'RE 4663 02:36:05,355 --> 02:36:06,056 FAIRLY CONFIDENT WE'RE WE'RE IN 4664 02:36:06,056 --> 02:36:07,925 A GOOD POSITION. THE WAY WE 4665 02:36:07,925 --> 02:36:10,494 STRUCTURED IT 4666 02:36:10,494 --> 02:36:12,229 -- THANK YOU FOR SPEAKING TO 4667 02:36:12,229 --> 02:36:15,399 THAT POINT AND UNDERSTANDING. WE 4668 02:36:15,399 --> 02:36:15,899 ARE LOOKING AT STAFFING 4669 02:36:15,899 --> 02:36:16,433 REDUCTIONS. I GUESS I'M 4670 02:36:16,433 --> 02:36:18,402 WONDERING IF YOU CAN SPEAK TO 4671 02:36:18,402 --> 02:36:20,537 HOW IT'S POSSIBLE THAT STAFFING 4672 02:36:20,537 --> 02:36:22,906 REDUCTIONS AT SDCI WON'T IMPACT 4673 02:36:22,906 --> 02:36:24,608 PERMITTING TIMELINES FOR CURRENT 4674 02:36:24,608 --> 02:36:29,113 PROJECTS ACROSS THE CITY 4675 02:36:29,113 --> 02:36:31,949 -- OUR CURRENT STAFFING IS IN 4676 02:36:31,949 --> 02:36:34,885 LINE WITH THE DEMAND AND THE 4677 02:36:34,885 --> 02:36:37,955 PROCESSES THAT WERE WERE 4678 02:36:37,955 --> 02:36:40,357 DECREASING FOR SOME CAPACITIES. 4679 02:36:40,357 --> 02:36:42,659 WE'RE ABLE TO INCREASE ANOTHER 4680 02:36:42,659 --> 02:36:45,462 CAPACITY. SO WE'RE WE'RE 4681 02:36:45,462 --> 02:36:52,569 LITERALLY DOING MORE OVERALL 4682 02:36:52,569 --> 02:36:53,103 GETTING CORRECTION CYCLES 4683 02:36:53,103 --> 02:36:56,974 REDUCED. SO THAT WAS ONE OF THE 4684 02:36:56,974 --> 02:36:58,609 COMPONENTS OF THE THE EXECUTIVE 4685 02:36:58,609 --> 02:36:59,042 ORDER FROM THE LAST 4686 02:36:59,042 --> 02:37:00,911 ADMINISTRATION. WITH THE PACT, 4687 02:37:00,911 --> 02:37:02,746 WE'VE TAKEN A NUMBER OF THOSE 4688 02:37:02,746 --> 02:37:04,014 INSTANCES AND. AND THEY BECAME 4689 02:37:04,014 --> 02:37:08,352 OUR BUSINESS MODEL. AND WE'RE 4690 02:37:08,352 --> 02:37:11,255 WE'RE WE'RE GENERATING PROJECTS 4691 02:37:11,255 --> 02:37:12,756 WITH FEWER HANDS ON THE PROJECT. 4692 02:37:12,756 --> 02:37:15,325 SO THEY WILL BE ABLE TO INCREASE 4693 02:37:15,325 --> 02:37:17,728 OUR CAPACITY 4694 02:37:17,728 --> 02:37:21,365 -- I, I JUST WANTED TO ADD THAT 4695 02:37:21,365 --> 02:37:24,234 WE HAVE, WE CURRENTLY HAVE 11 4696 02:37:24,234 --> 02:37:27,171 UNFUNDED VACANT POSITIONS FROM 4697 02:37:27,171 --> 02:37:29,706 2025 AND 2026 THAT WE CAN 4698 02:37:29,706 --> 02:37:31,408 UTILIZE ALONG WITH OUR 4699 02:37:31,408 --> 02:37:32,843 CONTINGENT BUDGET AUTHORITY TO 4700 02:37:32,843 --> 02:37:34,978 STAFF UP VERY QUICKLY. AND 4701 02:37:34,978 --> 02:37:38,582 THAT'S VERY IMPORTANT FOR SOUND 4702 02:37:38,582 --> 02:37:41,451 TRANSIT THREE AND HARBORVIEW 4703 02:37:41,451 --> 02:37:41,752 -- EXCUSE. 4704 02:37:41,752 --> 02:37:42,820 -- ME. 4705 02:37:42,820 --> 02:37:44,021 -- I THINK ON THIS QUESTION, 4706 02:37:44,021 --> 02:37:45,789 IT'S ALSO IMPORTANT TO NOTE THAT 4707 02:37:45,789 --> 02:37:47,991 MOST OF THE POSITIONS THAT ARE 4708 02:37:47,991 --> 02:37:49,459 BEING ELIMINATED ARE VACANT AND 4709 02:37:49,459 --> 02:37:51,061 HAVE BEEN VACANT FOR SOME TIME, 4710 02:37:51,061 --> 02:37:53,330 BECAUSE SDCI HAS BEEN VERY 4711 02:37:53,330 --> 02:37:54,832 CAREFULLY MONITORING THEIR LIKE 4712 02:37:54,832 --> 02:37:56,200 SPEND DOWN OF THEIR FUND 4713 02:37:56,200 --> 02:37:58,969 BALANCE. SO I THINK THAT'S 4714 02:37:58,969 --> 02:37:59,603 ANOTHER INDICATOR AND NOT, YOU 4715 02:37:59,603 --> 02:38:01,471 KNOW, SOME OF THESE POSITIONS 4716 02:38:01,471 --> 02:38:02,606 ARE LAND USE PLANNER POSITIONS. 4717 02:38:02,606 --> 02:38:04,308 THAT'S, YOU KNOW, RELATED TO 4718 02:38:04,308 --> 02:38:05,075 DESIGN REVIEW AND THAT THAT SORT 4719 02:38:05,075 --> 02:38:06,477 OF THING OR ADMINISTRATIVE 4720 02:38:06,477 --> 02:38:08,011 POSITION. SO I THINK IT'S JUST 4721 02:38:08,011 --> 02:38:11,748 LIKE FLAGGING THAT MOST OF THIS 4722 02:38:11,748 --> 02:38:12,282 IS ACTUALLY THEIR CURRENT 4723 02:38:12,282 --> 02:38:15,786 STAFFING LEVELS. 4724 02:38:15,786 --> 02:38:18,455 -- THANK YOU. THAT'S HELPFUL TO 4725 02:38:18,455 --> 02:38:19,723 JUST ILLUSTRATE, AGAIN, I HAVE 4726 02:38:19,723 --> 02:38:21,124 AN OUTSTANDING CONCERN. IF WE 4727 02:38:21,124 --> 02:38:22,693 WERE LOOKING AT JUST STAFFING 4728 02:38:22,693 --> 02:38:24,795 REDUCTIONS AT ANY LOSS IN 4729 02:38:24,795 --> 02:38:25,963 EXPERTISE, JUST THE FLUCTUATIONS 4730 02:38:25,963 --> 02:38:27,331 AND UNCERTAINTY, OF COURSE, 4731 02:38:27,331 --> 02:38:28,065 FACING DEVELOPMENT IN THE CITY 4732 02:38:28,065 --> 02:38:28,765 MAKE FOR A CHALLENGE, OF COURSE, 4733 02:38:28,765 --> 02:38:31,268 FOR PLANNING FOR THE DEPARTMENT. 4734 02:38:31,268 --> 02:38:32,903 SO RECOGNIZING THOSE POINTS, I 4735 02:38:32,903 --> 02:38:35,172 APPRECIATE THAT RESPONSE. AND I 4736 02:38:35,172 --> 02:38:37,674 SUPPOSE I'LL CLOSE WITH THIS 4737 02:38:37,674 --> 02:38:39,243 QUESTION. I THINK IT'S BEEN 4738 02:38:39,243 --> 02:38:40,644 SPOKEN TO ALREADY, BUT I'LL JUST 4739 02:38:40,644 --> 02:38:42,145 ASK IT AGAIN, JUST SO I'M 4740 02:38:42,145 --> 02:38:43,780 CRYSTAL CLEAR. CAN YOU SPEAK TO 4741 02:38:43,780 --> 02:38:45,682 YOUR CORE STAFFING RESERVES AND 4742 02:38:45,682 --> 02:38:48,685 WHAT RISK WE'RE IN WITH THE 4743 02:38:48,685 --> 02:38:52,189 FUND SET TO BE DEPLETED? 4744 02:38:52,189 --> 02:38:57,060 -- COUNCILMEMBER RINCK, AYE. MAY 4745 02:38:57,060 --> 02:38:58,195 I ASK THIS QUESTION IN A BUNCH 4746 02:38:58,195 --> 02:38:59,730 OF DIFFERENT WAYS? IN JUST A 4747 02:38:59,730 --> 02:38:59,963 SECOND? 4748 02:38:59,963 --> 02:39:01,131 -- I'M HAPPY WITH THAT. 4749 02:39:01,131 --> 02:39:02,933 -- FANTASTIC. SORRY, 4750 02:39:02,933 --> 02:39:05,636 COUNCILMEMBER RINCK JUST STOLE 4751 02:39:05,636 --> 02:39:06,837 MY ONLY QUESTION. I WAS GOING TO 4752 02:39:06,837 --> 02:39:07,104 KEEP IT. 4753 02:39:07,104 --> 02:39:08,205 -- SAVE SOME FOR 4754 02:39:08,205 --> 02:39:08,539 -- [LAUGHTER] 4755 02:39:08,539 --> 02:39:09,473 -- THE CHAIR. THANK YOU CHAIR. 4756 02:39:09,473 --> 02:39:11,008 THAT CONCLUDES MY QUESTIONS, 4757 02:39:11,008 --> 02:39:12,542 ACTUALLY. THANK YOU SO MUCH 4758 02:39:12,542 --> 02:39:14,344 AGAIN TO SDCI FOR THE WORK YOU 4759 02:39:14,344 --> 02:39:15,913 DO. LOOKING FORWARD TO CONTINUED 4760 02:39:15,913 --> 02:39:16,680 PARTNERSHIP. THANK YOU CHAIR. 4761 02:39:16,680 --> 02:39:18,382 -- THANK YOU FOR YOUR 4762 02:39:18,382 --> 02:39:18,949 PARTNERSHIP. COUNCILMEMBER 4763 02:39:18,949 --> 02:39:23,320 RINCK. IF WE CAN TURN TO PAGE 4764 02:39:23,320 --> 02:39:28,158 694 IN THE BUDGET BOOK. SO THIS 4765 02:39:28,158 --> 02:39:29,459 IS COMING TO KIND OF WHAT 4766 02:39:29,459 --> 02:39:30,093 COUNCILMEMBER FOSTER WAS TALKING 4767 02:39:30,093 --> 02:39:32,362 ABOUT, GENERAL FUND, ET CETERA. 4768 02:39:32,362 --> 02:39:32,829 WE ARE LOOKING AT THE 4769 02:39:32,829 --> 02:39:35,332 CONSTRUCTION AND INSPECTIONS 4770 02:39:35,332 --> 02:39:36,733 FUND. SO COLLEAGUES, THIS IS 4771 02:39:36,733 --> 02:39:38,835 WHAT COUNCILMEMBER RINCK WAS 4772 02:39:38,835 --> 02:39:40,437 JUST. THE CORE STAFFING IS ONE 4773 02:39:40,437 --> 02:39:44,708 LINE WITHIN THIS ENTIRE FUND. IF 4774 02:39:44,708 --> 02:39:46,410 WE COULD WALK THROUGH THIS AND 4775 02:39:46,410 --> 02:39:48,211 YOU COULD HELP ME UNDERSTAND, A 4776 02:39:48,211 --> 02:39:50,314 LOT OF IT IS CORRELATED TO YOUR 4777 02:39:50,314 --> 02:39:55,152 POWERPOINT JUST NOW OF BOILERS 4778 02:39:55,152 --> 02:39:55,786 BUILDING DEVELOPMENT, ELECTRICAL 4779 02:39:55,786 --> 02:39:58,622 GRANT REVENUES, INTEREST, JUST 4780 02:39:58,622 --> 02:39:59,890 IF YOU COULD GIVE ME JUST A TEN 4781 02:39:59,890 --> 02:40:01,858 SECOND, WE'RE GOING TO WALK 4782 02:40:01,858 --> 02:40:04,928 THROUGH EACH OF THESE, STARTING 4783 02:40:04,928 --> 02:40:06,797 WITH CONTINGENT BUDGET AUTHORITY 4784 02:40:06,797 --> 02:40:08,832 OFFSET. CAN YOU HELP US 4785 02:40:08,832 --> 02:40:12,636 UNDERSTAND THE PURPOSE AND WHAT 4786 02:40:12,636 --> 02:40:12,936 THIS DOES? 4787 02:40:12,936 --> 02:40:14,271 -- SURE. SO THE TOP IS THE 4788 02:40:14,271 --> 02:40:17,040 SOURCES OF FUNDS INCLUDES THE 4789 02:40:17,040 --> 02:40:17,608 CONTINGENT BUDGET AUTHORITY 4790 02:40:17,608 --> 02:40:18,542 OFFSET, WHICH IS BASICALLY JUST 4791 02:40:18,542 --> 02:40:21,378 AN OFFSET FOR THE BUDGETED 4792 02:40:21,378 --> 02:40:22,312 CONTINGENT BUDGET AUTHORITY. 4793 02:40:22,312 --> 02:40:24,514 THAT'S UNDER THE EXPENDITURES. 4794 02:40:24,514 --> 02:40:25,515 SO IT'S NOT REALLY A REVENUE 4795 02:40:25,515 --> 02:40:28,585 LINE, BUT IT'S A BUDGET LINE. 4796 02:40:28,585 --> 02:40:29,953 AND IF WE DIDN'T HAVE THAT 4797 02:40:29,953 --> 02:40:31,455 OFFSET, WE WOULD NEED TO 4798 02:40:31,455 --> 02:40:32,789 INCREASE OUR FEES DRAMATICALLY 4799 02:40:32,789 --> 02:40:34,925 BECAUSE WE'D HAVE $8 MILLION 4800 02:40:34,925 --> 02:40:35,492 MORE IN EXPENDITURE THAT WE 4801 02:40:35,492 --> 02:40:37,694 LIKELY WON'T SPEND CONTINGENT 4802 02:40:37,694 --> 02:40:38,829 BUDGET AUTHORITY WE ONLY ACCESS 4803 02:40:38,829 --> 02:40:41,164 ONCE EVERY I DON'T KNOW, BETWEEN 4804 02:40:41,164 --> 02:40:42,332 5 AND 10 YEARS. IT DOESN'T 4805 02:40:42,332 --> 02:40:43,433 HAPPEN A LOT, BUT WE NEED IT FOR 4806 02:40:43,433 --> 02:40:46,003 WHEN IT WHEN WE DO ACCESS IT, 4807 02:40:46,003 --> 02:40:47,070 CAN WE. 4808 02:40:47,070 --> 02:40:48,105 -- PAUSE RIGHT THERE? DIRECTOR 4809 02:40:48,105 --> 02:40:49,506 PANUCCI, CAN YOU HELP US A 4810 02:40:49,506 --> 02:40:49,806 LITTLE BIT? 4811 02:40:49,806 --> 02:40:51,241 -- YEAH. 4812 02:40:51,241 --> 02:40:51,875 -- I'LL JUST MAYBE TRANSLATE 4813 02:40:51,875 --> 02:40:54,478 THAT A LITTLE BIT IN, IN MAYBE 4814 02:40:54,478 --> 02:40:55,779 MAYBE PLAINER LANGUAGE, BUT I'M 4815 02:40:55,779 --> 02:40:56,947 NOT SURE ESSENTIALLY WHAT THAT 4816 02:40:56,947 --> 02:40:58,949 CONTINGENT BUDGET BUDGET 4817 02:40:58,949 --> 02:41:01,618 AUTHORITY DOES IS IF PERMIT 4818 02:41:01,618 --> 02:41:03,453 VOLUMES INCREASE OR PERMIT 4819 02:41:03,453 --> 02:41:04,855 VALUES INCREASE, WE ASSUME AN 4820 02:41:04,855 --> 02:41:06,690 INCREASE IN REVENUE. AND AND 4821 02:41:06,690 --> 02:41:08,992 THAT WOULD ALLOW US TO QUICKLY 4822 02:41:08,992 --> 02:41:10,460 FILL VACANT POSITIONS FOR THEM 4823 02:41:10,460 --> 02:41:12,029 TO STAFF BACK UP. SO YOU SEE A 4824 02:41:12,029 --> 02:41:15,232 CONTINGENT REVENUE ASSUMPTION 4825 02:41:15,232 --> 02:41:17,200 AND CONTINGENT EXPENDITURE THAT 4826 02:41:17,200 --> 02:41:19,102 BALANCE EACH OTHER OUT. IS THAT 4827 02:41:19,102 --> 02:41:19,369 HELPFUL? 4828 02:41:19,369 --> 02:41:21,071 -- SO THIS IS THE EMERGENCY 4829 02:41:21,071 --> 02:41:23,774 RELEASE VALVE THAT WHEN IF 4830 02:41:23,774 --> 02:41:26,143 PERMITS COME IN, YOU TAKE THAT 4831 02:41:26,143 --> 02:41:27,477 FEE. YOU DON'T HAVE TO COME 4832 02:41:27,477 --> 02:41:29,046 BACK TO BUDGET IN A YEAR FROM 4833 02:41:29,046 --> 02:41:31,548 NOW, YOU CAN START HIRING UP 4834 02:41:31,548 --> 02:41:32,449 IMMEDIATELY. IS THAT CORRECT? 4835 02:41:32,449 --> 02:41:34,284 -- THAT THAT IS CORRECT. THAT'S 4836 02:41:34,284 --> 02:41:35,519 THE EMERGENCY RELEASE VALVE THAT 4837 02:41:35,519 --> 02:41:37,120 WE ALL HOPE TO BE ABLE TO PULL 4838 02:41:37,120 --> 02:41:38,955 SOMETIME IN THE NEAR FUTURE. 4839 02:41:38,955 --> 02:41:40,957 -- AND THEN JUST GENERALLY THE 4840 02:41:40,957 --> 02:41:44,361 NEXT SET, THE BOILER BUILDING, 4841 02:41:44,361 --> 02:41:48,231 ELECTRICAL ELEVATOR, LAND USE, 4842 02:41:48,231 --> 02:41:50,233 NOISE, REFRIGERATION AND 4843 02:41:50,233 --> 02:41:51,868 FURNACE, THESE ARE ALL BASED ON 4844 02:41:51,868 --> 02:41:53,937 THOSE TYPES OF PERMITS 4845 02:41:53,937 --> 02:41:55,105 EXPLICITLY. IS THAT CORRECT? 4846 02:41:55,105 --> 02:41:59,376 -- IT IS, YEAH. WE CALL THEM 4847 02:41:59,376 --> 02:42:02,512 COST CENTERS BECAUSE WE CAN'T WE 4848 02:42:02,512 --> 02:42:04,014 CAN'T USE ELECTRICAL FEES TO 4849 02:42:04,014 --> 02:42:06,083 PAY FOR THE WORK THAT THE 4850 02:42:06,083 --> 02:42:06,783 BUILDING PERMIT STAFF DO. THEY 4851 02:42:06,783 --> 02:42:10,754 HAVE TO BE USED FOR ELECTRICAL 4852 02:42:10,754 --> 02:42:14,291 INSPECTORS. SO WE KEEP A WE KEEP 4853 02:42:14,291 --> 02:42:19,329 TRACK OF THAT. AND SO WITH 4854 02:42:19,329 --> 02:42:19,896 BUILDING DEVELOPMENT IS OUR 4855 02:42:19,896 --> 02:42:20,897 LARGEST COST CENTER, OUR 4856 02:42:20,897 --> 02:42:23,233 LARGEST. IT FUNDS ABOUT 55 TO 4857 02:42:23,233 --> 02:42:25,902 60% OF OUR DEPARTMENT. LAND USE 4858 02:42:25,902 --> 02:42:28,138 IS A VERY. IT'S NOT AS LARGE, 4859 02:42:28,138 --> 02:42:32,309 BUT IT'S VERY VOLATILE. AND SO 4860 02:42:32,309 --> 02:42:33,977 WE REALLY MONITOR THOSE TO THE 4861 02:42:33,977 --> 02:42:36,813 CLOSEST BECAUSE THEY ARE 4862 02:42:36,813 --> 02:42:37,447 ECONOMICALLY VOLATILE BASED ON 4863 02:42:37,447 --> 02:42:38,248 WHAT'S HAPPENING IN THE 4864 02:42:38,248 --> 02:42:42,219 DEVELOPMENT CYCLE, MORE SO THAN 4865 02:42:42,219 --> 02:42:46,123 ELECTRICAL BOILER ELEVATOR 4866 02:42:46,123 --> 02:42:46,490 REFRIGERATION. 4867 02:42:46,490 --> 02:42:49,559 -- BUILDING A BUILDING IS A 4868 02:42:49,559 --> 02:42:51,728 BIGGER THING THAN UPGRADING TO 4869 02:42:51,728 --> 02:42:53,730 SOLAR. GETTING A BATTERY PACK OR 4870 02:42:53,730 --> 02:42:55,332 ADDING A NEW PANEL BECAUSE YOUR 4871 02:42:55,332 --> 02:42:57,567 DRYER IS NOW MORE POWERFUL THAN 4872 02:42:57,567 --> 02:42:58,535 1950s. IS THAT GENERALLY WHAT 4873 02:42:58,535 --> 02:43:01,872 WE'RE TALKING ABOUT? YEAH. AND 4874 02:43:01,872 --> 02:43:03,840 THEN THANK YOU FOR GOING THROUGH 4875 02:43:03,840 --> 02:43:05,675 THIS WITH ME. AND SO EACH OF 4876 02:43:05,675 --> 02:43:08,645 THESE LINES LISTED ARE 4877 02:43:08,645 --> 02:43:09,412 ESSENTIALLY THE REVENUE, THE 4878 02:43:09,412 --> 02:43:11,214 COST CENTER, AS YOU CALL THEM. 4879 02:43:11,214 --> 02:43:12,749 WE GET THE MONEY IN FOR THE 4880 02:43:12,749 --> 02:43:15,552 PERMIT BASED ON THIS MONEY WE 4881 02:43:15,552 --> 02:43:18,255 CAN HIRE AND PAY OUR PERMIT. 4882 02:43:18,255 --> 02:43:21,625 REVIEWERS. AND THEN A NEW ITEM, 4883 02:43:21,625 --> 02:43:24,227 A NEW COUPLE LINE ITEMS HERE ARE 4884 02:43:24,227 --> 02:43:25,362 FEE CHANGES BASED ON ALL OF 4885 02:43:25,362 --> 02:43:26,897 THESE, WITH THE LAST ONE BEING 4886 02:43:26,897 --> 02:43:30,300 THE RENTAL REGULATORY FEE IS AM 4887 02:43:30,300 --> 02:43:31,668 I CORRECT IN YOUR POWERPOINT? 4888 02:43:31,668 --> 02:43:32,903 THIS IS WHEN YOU WERE TALKING 4889 02:43:32,903 --> 02:43:35,105 ABOUT THE JUNK FEES ORDINANCE 4890 02:43:35,105 --> 02:43:37,274 AND ENFORCEMENT THERE. IS THAT 4891 02:43:37,274 --> 02:43:38,341 CORRECT? YEAH. FANTASTIC. SO NOW 4892 02:43:38,341 --> 02:43:43,146 WE COME TO EXPENDITURES WHERE 4893 02:43:43,146 --> 02:43:44,548 YOU CAN SEE HOW WE ARE SPENDING 4894 02:43:44,548 --> 02:43:47,250 OUR MONEY, AND THEN DOWN AT THE 4895 02:43:47,250 --> 02:43:49,786 BOTTOM IS WHERE WE HAVE CORE 4896 02:43:49,786 --> 02:43:51,054 STAFFING AND A PLANNING RESERVE. 4897 02:43:51,054 --> 02:43:51,922 AND THIS IS WHERE I'D LIKE TO 4898 02:43:51,922 --> 02:43:53,423 GET IN WITH YOU BECAUSE I'VE 4899 02:43:53,423 --> 02:43:58,461 SEEN IN PAST YEARS, WE HAVE ALSO 4900 02:43:58,461 --> 02:43:59,596 HAD IN 2026, JUST LAST YEAR, WE 4901 02:43:59,596 --> 02:44:01,965 HAD A PROCESS IMPROVEMENTS IN 4902 02:44:01,965 --> 02:44:03,600 TECHNOLOGY. WE HAD TENANT 4903 02:44:03,600 --> 02:44:05,569 IMPROVEMENTS AND AN OPERATING 4904 02:44:05,569 --> 02:44:07,804 RESERVE AS WELL. HOW HAVE THOSE 4905 02:44:07,804 --> 02:44:10,106 THREE RESERVES CHANGED? 4906 02:44:10,106 --> 02:44:12,509 -- YEAH. SO THIS FINANCIAL PLAN, 4907 02:44:12,509 --> 02:44:14,344 IT SHOWS THAT WE HAVE BEEN 4908 02:44:14,344 --> 02:44:14,978 DRAWING DOWN OUR RESERVES OVER 4909 02:44:14,978 --> 02:44:16,813 THE LAST SEVERAL YEARS AS PERMIT 4910 02:44:16,813 --> 02:44:20,417 REVENUES HAVE DECLINED. THOSE 4911 02:44:20,417 --> 02:44:21,017 RESERVES WERE ESTABLISHED TO 4912 02:44:21,017 --> 02:44:22,552 HELP US MAINTAIN STAFFING AND 4913 02:44:22,552 --> 02:44:25,422 SERVICE LEVELS THROUGH DOWNTURNS 4914 02:44:25,422 --> 02:44:27,724 AND THE DEVELOPMENT CYCLE. AND 4915 02:44:27,724 --> 02:44:29,659 WE HAD SET THOSE ACCORDING TO 4916 02:44:29,659 --> 02:44:33,430 WHAT WE WENT THROUGH IN 2009 AND 4917 02:44:33,430 --> 02:44:34,097 TEN. THAT'S AT THAT LEVEL THAT 4918 02:44:34,097 --> 02:44:35,899 COULD GET US THROUGH ANOTHER 4919 02:44:35,899 --> 02:44:38,168 GREAT RECESSION TYPE OF 4920 02:44:38,168 --> 02:44:39,135 DOWNTURN. BUT THE DOWNTURN WE'RE 4921 02:44:39,135 --> 02:44:42,005 IN NOW IS KIND OF STRANGE. IT'S 4922 02:44:42,005 --> 02:44:42,906 LASTING A LOT LONGER. IT'S NOT 4923 02:44:42,906 --> 02:44:48,178 REALLY SHARP. SO THE PLAN, IT 4924 02:44:48,178 --> 02:44:49,746 REALLY REFLECTS THE CONTINUED 4925 02:44:49,746 --> 02:44:52,249 DRAWDOWN AS WELL AS THE ACTIONS 4926 02:44:52,249 --> 02:44:53,650 WE'RE TAKING THROUGH THE 2027 4927 02:44:53,650 --> 02:44:55,752 BUDGET AND FEE LEGISLATION TO 4928 02:44:55,752 --> 02:44:59,089 HOPEFULLY STABILIZE THE FUND 4929 02:44:59,089 --> 02:44:59,456 GOING FORWARD. 4930 02:44:59,456 --> 02:45:01,358 -- AND THIS KIND OF GETS TO WHAT 4931 02:45:01,358 --> 02:45:02,893 COUNCILMEMBER KETTLE WAS JUST 4932 02:45:02,893 --> 02:45:03,593 TALKING ABOUT A SECOND AGO, AS 4933 02:45:03,593 --> 02:45:05,528 WELL AS WHAT WE INITIALLY 4934 02:45:05,528 --> 02:45:06,830 THOUGHT THE PANDEMIC WAS GOING 4935 02:45:06,830 --> 02:45:08,098 TO TAKE TWO WEEKS AND WE'D BE 4936 02:45:08,098 --> 02:45:09,899 RIGHT BACK. AND THEN IT WAS TWO 4937 02:45:09,899 --> 02:45:13,236 YEARS, AND THEN SIX YEARS LATER, 4938 02:45:13,236 --> 02:45:14,671 IT FEELS LIKE WE'RE FINALLY OUT 4939 02:45:14,671 --> 02:45:16,973 OF IT. BUT THE ECONOMIC THE 4940 02:45:16,973 --> 02:45:18,608 DOWNSTREAM ECONOMIC IMPACTS ARE 4941 02:45:18,608 --> 02:45:21,111 STILL LASTING WITH US, AS SEEN 4942 02:45:21,111 --> 02:45:22,946 IN THIS BUDGET, ABOUT HOW WE'RE 4943 02:45:22,946 --> 02:45:24,881 USING THE JUMP START FUNDS 4944 02:45:24,881 --> 02:45:27,183 ACROSS MANY MORE DIFFERENT 4945 02:45:27,183 --> 02:45:28,518 DISCIPLINES IN OUR GOVERNMENT, 4946 02:45:28,518 --> 02:45:29,486 BECAUSE IT'S BETTER THAN CUTTING 4947 02:45:29,486 --> 02:45:31,254 THE PROGRAMS WE HAVE THE CASH 4948 02:45:31,254 --> 02:45:33,456 TODAY. WE'RE STILL MAKING 4949 02:45:33,456 --> 02:45:34,190 NEARLY A COUNTING SOCIAL 4950 02:45:34,190 --> 02:45:35,558 HOUSING. WE ARE MAKING A 4951 02:45:35,558 --> 02:45:37,794 HISTORIC INVESTMENT IN HOUSING 4952 02:45:37,794 --> 02:45:39,329 THIS YEAR. BUT I WANT TO GET 4953 02:45:39,329 --> 02:45:42,132 INTO THIS CORE STAFFING FUND 4954 02:45:42,132 --> 02:45:43,667 BECAUSE BEFORE WE HAVE TO USE 4955 02:45:43,667 --> 02:45:44,167 YOUR CONTINGENT BUDGET 4956 02:45:44,167 --> 02:45:47,704 AUTHORITY, MEANING WE DON'T HAVE 4957 02:45:47,704 --> 02:45:50,640 STAFF. AND SO WE HIRE QUICKLY 4958 02:45:50,640 --> 02:45:53,209 YOUR CORE STAFFING FUND ALLOWS 4959 02:45:53,209 --> 02:45:57,047 US TO CREATE A RESERVE. IS THAT 4960 02:45:57,047 --> 02:45:57,414 ESSENTIALLY IT. 4961 02:45:57,414 --> 02:45:58,515 -- TO RETAIN STAFF THROUGH A 4962 02:45:58,515 --> 02:45:59,749 DOWNTURN? 4963 02:45:59,749 --> 02:46:00,984 -- SO WE ARE. SO A CORE STAFFING 4964 02:46:00,984 --> 02:46:03,753 MAY BE SAID IN ANOTHER WAY IS 4965 02:46:03,753 --> 02:46:05,622 YOU HAVE PERMIT FEES THAT ARE 4966 02:46:05,622 --> 02:46:09,926 COMING IN AT A LOWER RATE THAN 4967 02:46:09,926 --> 02:46:12,429 YOUR ENTIRE EMPLOYEE HEADCOUNT. 4968 02:46:12,429 --> 02:46:13,930 AND SO OUR FEES ARE NOT COVERING 4969 02:46:13,930 --> 02:46:16,199 ALL OF OUR SALARIES. AND SO WE 4970 02:46:16,199 --> 02:46:19,002 HAVE THIS CORE STAFFING FUND TO 4971 02:46:19,002 --> 02:46:20,637 BUOY US THROUGH THAT STORM. IS 4972 02:46:20,637 --> 02:46:24,174 THAT. THAT'S RIGHT. GENERALLY, 4973 02:46:24,174 --> 02:46:26,409 IT. AND IN YOUR PROJECTIONS AND 4974 02:46:26,409 --> 02:46:27,210 DIRECTOR PANUCCI, AM I CORRECT 4975 02:46:27,210 --> 02:46:29,346 THAT THE FORECAST OFFICE 4976 02:46:29,346 --> 02:46:31,548 FORECASTS THESE NUMBERS, OR HOW 4977 02:46:31,548 --> 02:46:33,850 ARE THESE NUMBERS FORECASTED? 4978 02:46:33,850 --> 02:46:35,685 SORRY, THAT'S A NEW QUESTION 4979 02:46:35,685 --> 02:46:36,686 AND WE CAN YOU CAN GET BACK TO 4980 02:46:36,686 --> 02:46:40,724 ME IF YOU NEED TO. I WASN'T I 4981 02:46:40,724 --> 02:46:42,692 DID NOT I USUALLY SHARE MY 4982 02:46:42,692 --> 02:46:43,893 QUESTIONS, BUT I DIDN'T SHARE 4983 02:46:43,893 --> 02:46:45,028 THAT ONE. SORRY. 4984 02:46:45,028 --> 02:46:46,796 -- I KNOW THAT THERE ARE 4985 02:46:46,796 --> 02:46:49,366 ECONOMIST WORKS WITH THE ERF 4986 02:46:49,366 --> 02:46:51,134 TOGETHER IN ORDER TO COME UP 4987 02:46:51,134 --> 02:46:53,636 WITH THEIR PROJECTIONS, AND THEY 4988 02:46:53,636 --> 02:46:56,539 KIND OF MAKE SURE THAT THEY'RE 4989 02:46:56,539 --> 02:47:00,243 THE PROJECTIONS THAT WE SEE AND 4990 02:47:00,243 --> 02:47:02,779 WE ARE F SEES THEY THEY WORK 4991 02:47:02,779 --> 02:47:03,880 TOGETHER JUST TO BOTH ON, YOU 4992 02:47:03,880 --> 02:47:06,316 KNOW, WE ARE F WORKS ON A LOT OF 4993 02:47:06,316 --> 02:47:09,152 DIFFERENT THINGS, BUT WE WORK TO 4994 02:47:09,152 --> 02:47:10,253 HELP INFORM GENERAL FUND AS 4995 02:47:10,253 --> 02:47:10,520 WELL. SO. 4996 02:47:10,520 --> 02:47:13,022 -- DIRECTOR 4997 02:47:13,022 --> 02:47:14,691 -- YEAH, I, I WILL NOT FULLY 4998 02:47:14,691 --> 02:47:16,493 ANSWER YOUR QUESTION. I BELIEVE 4999 02:47:16,493 --> 02:47:17,627 THE DEPARTMENT FORECASTS THEIR 5000 02:47:17,627 --> 02:47:19,963 PERMIT FEE REVENUES, BUT IT IS A 5001 02:47:19,963 --> 02:47:23,967 IT IS AN INPUT INTO THE OVERALL. 5002 02:47:23,967 --> 02:47:25,435 LIKE THE GENERAL FUND FORECAST 5003 02:47:25,435 --> 02:47:27,871 THAT OUR OFFICE OF ECONOMIC AND 5004 02:47:27,871 --> 02:47:28,438 REVENUE FORECASTS AND OTHER 5005 02:47:28,438 --> 02:47:29,973 INDICATORS. AS YOU NOTED, PERMIT 5006 02:47:29,973 --> 02:47:31,808 ACTIVITY IS A KEY INDICATOR IN 5007 02:47:31,808 --> 02:47:35,111 SORT OF ECONOMIC ACTIVITY 5008 02:47:35,111 --> 02:47:37,080 OCCURRING IN THE DEPARTMENT. BUT 5009 02:47:37,080 --> 02:47:37,714 FOR REALLY DEPARTMENT SPECIFIC 5010 02:47:37,714 --> 02:47:38,581 FUNDS, IT'S WHY THEY ALSO HAVE 5011 02:47:38,581 --> 02:47:41,251 AN ECONOMIST ON STAFF AS THEY 5012 02:47:41,251 --> 02:47:43,052 THEY DO THE FORECASTING FOR 5013 02:47:43,052 --> 02:47:44,788 THEIR PERMIT PERMIT ACTIVITY. 5014 02:47:44,788 --> 02:47:46,256 -- THANK YOU. BECAUSE, YOU KNOW, 5015 02:47:46,256 --> 02:47:49,259 I'VE ONLY I'VE ONLY PULLED A 5016 02:47:49,259 --> 02:47:52,429 COUPLE OF YEARS BACK DATA FROM 5017 02:47:52,429 --> 02:47:54,130 OUR BUDGET BOOKS BECAUSE IT 5018 02:47:54,130 --> 02:47:55,398 TELLS THE STORY OF HOW WE'VE 5019 02:47:55,398 --> 02:47:57,167 BEEN FORECASTING WHERE WE 5020 02:47:57,167 --> 02:47:58,134 THOUGHT THE PANDEMIC WOULD BE 5021 02:47:58,134 --> 02:48:00,437 TWO WEEKS, TWO MONTHS, TWO 5022 02:48:00,437 --> 02:48:04,174 YEARS. AND SO JUST LOOKING AT 5023 02:48:04,174 --> 02:48:10,680 2027. ACTUALLY IN 2022, WE HAD 5024 02:48:10,680 --> 02:48:13,183 $34,000 IN THE CORE STAFFING 5025 02:48:13,183 --> 02:48:14,250 FUND WHERE WE DRAWING DOWN THE 5026 02:48:14,250 --> 02:48:15,985 CORE STAFFING FUND IN 2022. SO 5027 02:48:15,985 --> 02:48:19,189 IT WAS STEADY. THAT WAS WHAT WE 5028 02:48:19,189 --> 02:48:19,389 HAD. 5029 02:48:19,389 --> 02:48:24,828 -- YEAH. DURING 2020, WE WERE 5030 02:48:24,828 --> 02:48:26,329 SURPRISED. WE. WE, I BELIEVE WE 5031 02:48:26,329 --> 02:48:30,266 HAD A, A RUSH AT THAT TIME, 5032 02:48:30,266 --> 02:48:32,735 WHICH REALLY, WE INCREASED OUR 5033 02:48:32,735 --> 02:48:33,570 FUND BALANCE IN 2020 OVERALL. 5034 02:48:33,570 --> 02:48:34,204 AND THEN IT KIND OF STABILIZED 5035 02:48:34,204 --> 02:48:35,805 AND DROPPED AFTER THAT. 5036 02:48:35,805 --> 02:48:41,644 -- BUT AND BY 2024, WE HAD 5037 02:48:41,644 --> 02:48:43,680 $22,000 IN THE CORE STAFFING 5038 02:48:43,680 --> 02:48:45,482 FUND PROJECTED FOR 25, 26, AND 5039 02:48:45,482 --> 02:48:45,648 27. 5040 02:48:45,648 --> 02:48:47,317 -- IT'S DROPPING FAST, 5041 02:48:47,317 --> 02:48:51,921 -- RIGHT, 34 TO 2022. BUT THEN 5042 02:48:51,921 --> 02:48:54,524 IN THE 2025 PROPOSED BUDGET, WE 5043 02:48:54,524 --> 02:48:58,428 HAD 22 STILL IN 25, BUT IT HAD 5044 02:48:58,428 --> 02:49:02,866 ALREADY DROPPED TO 18,000 IN 5045 02:49:02,866 --> 02:49:07,337 2026, WITH PROJECTING 15,000 IN 5046 02:49:07,337 --> 02:49:09,839 THE REMAINING 2027, 28, 29. BUT 5047 02:49:09,839 --> 02:49:11,674 BY THE TIME WE GOT TO 2026, THE 5048 02:49:11,674 --> 02:49:15,178 BUDGET BEFORE US, WE'VE GOT 5049 02:49:15,178 --> 02:49:19,616 12,000 THIS YEAR, FOLLOWED BY 5050 02:49:19,616 --> 02:49:21,684 SEVEN SEVEN IN BOTH 27 AND 28. 5051 02:49:21,684 --> 02:49:26,756 AND THEN IN 2029, WE SEE AN 5052 02:49:26,756 --> 02:49:28,925 UPTICK. ANOTHER 12,000 GOING UP 5053 02:49:28,925 --> 02:49:30,560 FROM SEVEN. BUT THEN WE COME TO 5054 02:49:30,560 --> 02:49:33,029 THIS YEAR'S SORRY FOR THE 2027 5055 02:49:33,029 --> 02:49:35,031 BUDGET. AND WE STILL SEE THAT 12 5056 02:49:35,031 --> 02:49:39,702 IS AN ACCURATE NUMBER FOR THE 26 5057 02:49:39,702 --> 02:49:41,538 ADOPTED. WE SEE WE HAVE 8000 IN 5058 02:49:41,538 --> 02:49:43,473 OUR CORE STAFFING FOR 2027, 5059 02:49:43,473 --> 02:49:46,976 WHICH IS UP 1000. BUT THEN IT 5060 02:49:46,976 --> 02:49:48,378 DROPS FROM 7000 TO 1000. AND 5061 02:49:48,378 --> 02:49:51,047 THEN WE'RE ZEROED OUT IN 28 AND 5062 02:49:51,047 --> 02:49:53,082 29. YEAH. IS THIS ALL GENERALLY, 5063 02:49:53,082 --> 02:49:54,183 YOU'RE UNDER? I'M JUST TRYING 5064 02:49:54,183 --> 02:49:56,553 TO SHOW THE BURN RATE THAT WE 5065 02:49:56,553 --> 02:49:58,621 WENT FROM $34 MILLION. 34 SORRY, 5066 02:49:58,621 --> 02:49:59,255 AM I MISSING THE ZEROS OR IS 5067 02:49:59,255 --> 02:50:00,723 THIS THOUSANDS? 5068 02:50:00,723 --> 02:50:01,624 -- IT'S MILLIONS. 5069 02:50:01,624 --> 02:50:03,760 -- OKAY. I'M SORRY. WE GOT 34 5070 02:50:03,760 --> 02:50:06,663 MILLION SITTING IN HERE IN 2022. 5071 02:50:06,663 --> 02:50:10,300 AND BY THE TIME WE'RE AT 2028, 5072 02:50:10,300 --> 02:50:13,703 WE'RE AT ZERO. AND THAT'S 5073 02:50:13,703 --> 02:50:14,704 BECAUSE OF THE PERMIT DECLINE, 5074 02:50:14,704 --> 02:50:16,573 THE REVENUE, THE FEE BASED 5075 02:50:16,573 --> 02:50:18,141 GENERATION, ALL OF THAT. IS THAT 5076 02:50:18,141 --> 02:50:18,408 CORRECT? 5077 02:50:18,408 --> 02:50:19,943 -- YEAH. OF COURSE. STAFFING 5078 02:50:19,943 --> 02:50:23,413 RESERVE. WE HAVE THE MAJORITY OF 5079 02:50:23,413 --> 02:50:26,649 IT IS BUILDING PERMIT FEE 5080 02:50:26,649 --> 02:50:28,251 BUILDING AND LAND USE. BUT THERE 5081 02:50:28,251 --> 02:50:30,286 IS ELECTRICAL AND SITE REVIEW IN 5082 02:50:30,286 --> 02:50:33,590 THERE AS WELL. SO WE HAVEN'T 5083 02:50:33,590 --> 02:50:35,058 ACCESSED THAT YET. IT'S MOSTLY 5084 02:50:35,058 --> 02:50:36,526 BUILDING AND LAND USE THAT ARE 5085 02:50:36,526 --> 02:50:37,093 JUST DROPPING IN THE CHART 5086 02:50:37,093 --> 02:50:38,094 THAT'S UP THERE. THAT'S JUST 5087 02:50:38,094 --> 02:50:39,562 SHOWING ONLY THE BUILDING AND 5088 02:50:39,562 --> 02:50:40,930 THE LAND USE CORE STAFF, THE RED 5089 02:50:40,930 --> 02:50:42,465 AND THE BLUE. 5090 02:50:42,465 --> 02:50:43,933 -- GOTCHA. DIRECTOR. 5091 02:50:43,933 --> 02:50:44,934 -- YEAH, AND I THINK THIS MIGHT 5092 02:50:44,934 --> 02:50:47,637 BE KIND OF WHAT YOU ARE HONING 5093 02:50:47,637 --> 02:50:48,571 IN ON HERE, BUT THIS IS A 5094 02:50:48,571 --> 02:50:50,273 REFLECTION OF LIKE, EVEN WITH 5095 02:50:50,273 --> 02:50:52,976 THE CHANGES IN THIS PROPOSED 5096 02:50:52,976 --> 02:50:55,378 BUDGET, WE ARE STILL RELYING ON 5097 02:50:55,378 --> 02:50:58,381 FUND BALANCE TO MAINTAIN EVEN 5098 02:50:58,381 --> 02:50:59,949 THE REDUCED LEVELS OF STAFFING. 5099 02:50:59,949 --> 02:51:01,784 AND THAT'S WHY I'VE SAID LIKE, 5100 02:51:01,784 --> 02:51:03,086 WE SPEND A LOT OF TIME TALKING 5101 02:51:03,086 --> 02:51:03,686 ABOUT THE GENERAL FUND. THERE 5102 02:51:03,686 --> 02:51:05,555 ARE LIKE 62 FUNDS. THERE'S MORE 5103 02:51:05,555 --> 02:51:07,991 WORK TO DO. THIS IS ONE OF THEM 5104 02:51:07,991 --> 02:51:09,092 THAT IS LIKE, WE ARE WE HAVE 5105 02:51:09,092 --> 02:51:11,527 MORE WORK TO DO. EVEN GOING INTO 5106 02:51:11,527 --> 02:51:12,729 NEXT YEAR TOGETHER. AND 5107 02:51:12,729 --> 02:51:14,230 HOPEFULLY SOME OF THE WORK THAT 5108 02:51:14,230 --> 02:51:15,131 I KNOW YOU ALL ARE LEADING ON 5109 02:51:15,131 --> 02:51:18,534 AND THE MAYOR'S OFFICE AND 5110 02:51:18,534 --> 02:51:19,902 OTHERS WILL HELP BEND THE CURVE 5111 02:51:19,902 --> 02:51:21,371 IN THE OPPOSITE DIRECTION, I 5112 02:51:21,371 --> 02:51:23,873 THINK IS THE GOAL. BUT EVEN WITH 5113 02:51:23,873 --> 02:51:25,208 THESE CHANGES, THERE'S SOME 5114 02:51:25,208 --> 02:51:26,275 RELIANCE, WHICH IS WHY WE ARE 5115 02:51:26,275 --> 02:51:28,778 TRYING TO BE CAUTIOUS TO NOT 5116 02:51:28,778 --> 02:51:31,180 REALLY LIKE CUT THE CORE CORE 5117 02:51:31,180 --> 02:51:33,483 STAFFING, BUT ALSO NEED TO BE 5118 02:51:33,483 --> 02:51:35,018 CAREFUL IN SORT OF HOW HOW TO 5119 02:51:35,018 --> 02:51:36,753 PROCEED. GIVEN THIS, THESE 5120 02:51:36,753 --> 02:51:37,086 PROJECTIONS. 5121 02:51:37,086 --> 02:51:38,388 -- THE REASON I BRING THIS UP 5122 02:51:38,388 --> 02:51:40,056 NOW IS BECAUSE LAST YEAR WE GOT 5123 02:51:40,056 --> 02:51:41,457 TO THE END OF THE BUDGET CYCLE, 5124 02:51:41,457 --> 02:51:42,959 AND THERE WERE A LOT MORE 5125 02:51:42,959 --> 02:51:44,627 QUESTIONS ABOUT THIS VERY TOPIC, 5126 02:51:44,627 --> 02:51:46,462 WHICH IS WHY I'M GOING REALLY IN 5127 02:51:46,462 --> 02:51:48,631 DEPTH HERE. COUNCILMEMBER RINCK, 5128 02:51:48,631 --> 02:51:49,932 THANK YOU FOR LETTING ME ASK MY 5129 02:51:49,932 --> 02:51:51,801 ONE QUESTION, WHICH HAS 25 5130 02:51:51,801 --> 02:51:53,803 DIFFERENT PRONGS TO IT. I BRING 5131 02:51:53,803 --> 02:51:56,572 THIS UP BECAUSE IT'S REALLY 5132 02:51:56,572 --> 02:52:01,544 IMPORTANT FOR ME THAT FOLKS SEE 5133 02:52:01,544 --> 02:52:03,112 THE 1 MILLION AND THE TWO ZEROS 5134 02:52:03,112 --> 02:52:06,416 IN THIS LINE AS THE BIGGEST RED 5135 02:52:06,416 --> 02:52:08,284 FLASHING BEACON IN THE BUDGET 5136 02:52:08,284 --> 02:52:13,256 RIGHT NOW. THIS WAS EVEN JUST, 5137 02:52:13,256 --> 02:52:15,091 YOU KNOW, WHEN I STARTED AS A 5138 02:52:15,091 --> 02:52:18,161 BUDGET CHAIR, WE HAD OVER WE HAD 5139 02:52:18,161 --> 02:52:20,129 $22 MILLION IN THIS FUND. AND TO 5140 02:52:20,129 --> 02:52:23,966 BE EXHAUSTED OF THIS FUND IS 5141 02:52:23,966 --> 02:52:25,034 IT'S JUST VERY SCARY. AND THIS 5142 02:52:25,034 --> 02:52:27,503 IS AFTER WE'VE ALREADY DONE THE 5143 02:52:27,503 --> 02:52:28,905 THING THAT IS HARDEST FOR ME AS 5144 02:52:28,905 --> 02:52:30,773 A PUBLIC SERVANT, WHICH IS LAY 5145 02:52:30,773 --> 02:52:34,744 OFF MY CITY FAMILY. THIS IS 5146 02:52:34,744 --> 02:52:37,447 AFTER WE HAVE INCREASED PERMIT 5147 02:52:37,447 --> 02:52:39,449 FEES LAST YEAR, I'M SEEING 5148 02:52:39,449 --> 02:52:40,917 MORE. AND THEN THIS YEAR WE ARE 5149 02:52:40,917 --> 02:52:43,152 BOTH LAYING PEOPLE OFF AND 5150 02:52:43,152 --> 02:52:46,089 INCREASING PERMIT FEES. AND SO 5151 02:52:46,089 --> 02:52:48,391 THE ONLY OTHER OPTION HERE FROM 5152 02:52:48,391 --> 02:52:50,193 HERE IS TO EITHER CONTINUE 5153 02:52:50,193 --> 02:52:53,129 LAYING PEOPLE OFF, ADDING 5154 02:52:53,129 --> 02:52:55,198 GENERAL FUND OR INCREASING THESE 5155 02:52:55,198 --> 02:52:56,899 FEES AGAIN, WHICH TO 5156 02:52:56,899 --> 02:52:59,502 COUNCILMEMBER KETTLE POINT, 5157 02:52:59,502 --> 02:53:00,303 MAYBE IT WAS A SIDE POINT, WHICH 5158 02:53:00,303 --> 02:53:01,104 IS THAT IF OUR FEES ARE TOO 5159 02:53:01,104 --> 02:53:01,804 HIGH, PEOPLE AREN'T GOING TO 5160 02:53:01,804 --> 02:53:06,042 WANT TO BUILD. THIS IS BACK TO 5161 02:53:06,042 --> 02:53:09,545 THE CONVERSATION OF MHA WAS 5162 02:53:09,545 --> 02:53:11,714 GROSSING US $67 MILLION A YEAR 5163 02:53:11,714 --> 02:53:13,416 TO 24 MILLION IN THE PROJECTIONS 5164 02:53:13,416 --> 02:53:14,784 THAT I'M SEEING IN THE MOST 5165 02:53:14,784 --> 02:53:17,086 RECENT WERE $22 MILLION A YEAR 5166 02:53:17,086 --> 02:53:19,756 AT BEST. AND THOSE ARE FLAT. 5167 02:53:19,756 --> 02:53:20,890 THIS IS A REALLY BIG DEAL 5168 02:53:20,890 --> 02:53:22,358 BECAUSE ALL OF THE CONSTRUCTION 5169 02:53:22,358 --> 02:53:24,260 SALES TAX COMES BACK TO US. ALL 5170 02:53:24,260 --> 02:53:26,462 OF THE 1% ON NEW CONSTRUCTION 5171 02:53:26,462 --> 02:53:30,566 COMES BACK TO US. ALL OF THE 5172 02:53:30,566 --> 02:53:33,069 PROPERTY TRANSFERS THAT THAT 5173 02:53:33,069 --> 02:53:35,271 FUNDING COMES BACK TO US. THIS 5174 02:53:35,271 --> 02:53:40,209 IS PAGE 694, THE THIRD TO LAST 5175 02:53:40,209 --> 02:53:41,711 LINE IS ONE OF THE MOST 5176 02:53:41,711 --> 02:53:43,212 IMPORTANT LINES OF THE BUDGET. 5177 02:53:43,212 --> 02:53:44,547 AND I'M JUST TRYING TO BRING 5178 02:53:44,547 --> 02:53:47,717 OUR ATTENTION HERE, BECAUSE THIS 5179 02:53:47,717 --> 02:53:50,753 IS THIS IS VERY BAD. IT'S VERY 5180 02:53:50,753 --> 02:53:54,323 SCARY. AND I GUESS I DON'T HAVE 5181 02:53:54,323 --> 02:53:57,894 ANY OTHER QUESTIONS ONLY TO SAY 5182 02:53:57,894 --> 02:53:58,895 IT IS THE HARDEST THING FOR ME 5183 02:53:58,895 --> 02:54:02,131 TO DO. PEOPLE CHOOSE TO WORK FOR 5184 02:54:02,131 --> 02:54:03,299 THE GOVERNMENT BECAUSE IT'S GOT 5185 02:54:03,299 --> 02:54:04,967 GOOD BENEFITS AND IT'S GOT GOOD 5186 02:54:04,967 --> 02:54:05,568 STABILITY. WE DON'T PAY THE 5187 02:54:05,568 --> 02:54:07,170 BEST. IF YOU NEED TO BE PAID 5188 02:54:07,170 --> 02:54:08,404 MORE MONEY, YOU CAN GO WORK FOR 5189 02:54:08,404 --> 02:54:09,739 THE PRIVATE SECTOR AND, YOU 5190 02:54:09,739 --> 02:54:11,507 KNOW, MAKE A WHOLE LOT MORE 5191 02:54:11,507 --> 02:54:12,074 MONEY. I THINK EVERYONE'S 5192 02:54:12,074 --> 02:54:13,976 SITTING IN THIS ROOM KNOWS THAT. 5193 02:54:13,976 --> 02:54:16,279 AND WE ALL, FOR THOSE OF US WHO 5194 02:54:16,279 --> 02:54:18,281 ARE PUBLIC SERVANTS, WE CHOOSE 5195 02:54:18,281 --> 02:54:20,550 THE THIRD BOTTOM LINE OF OF 5196 02:54:20,550 --> 02:54:22,318 CIVIC SERVICE BECAUSE OF, YOU 5197 02:54:22,318 --> 02:54:23,786 KNOW, SERVICE TO OTHERS, SERVICE 5198 02:54:23,786 --> 02:54:25,688 TO CITIES, SERVICE TO NATION, 5199 02:54:25,688 --> 02:54:28,157 BUT ALSO BECAUSE IT'S THE 5200 02:54:28,157 --> 02:54:29,725 PRIVATE SECTOR GOES THROUGH 5201 02:54:29,725 --> 02:54:30,293 ROUNDS OF LAYOFFS THAT THE 5202 02:54:30,293 --> 02:54:32,361 PUBLIC SECTOR DOESN'T. THIS WILL 5203 02:54:32,361 --> 02:54:34,730 ONLY BE THE SECOND TIME THAT 5204 02:54:34,730 --> 02:54:37,166 WE'VE LAID FOLKS OFF SINCE 5205 02:54:37,166 --> 02:54:39,402 2008. I FEEL LIKE WE ARE STILL 5206 02:54:39,402 --> 02:54:41,571 EXPERIENCING THE DOWNTURN FROM 5207 02:54:41,571 --> 02:54:43,005 2008. FROM WHAT I'M SEEING WITH 5208 02:54:43,005 --> 02:54:45,107 THE CULTURE IN YOUR PERMITTING 5209 02:54:45,107 --> 02:54:46,476 DEPARTMENT, EVERYONE IS CORRECT 5210 02:54:46,476 --> 02:54:48,511 THAT THERE ARE MANY OTHER 5211 02:54:48,511 --> 02:54:49,679 DEPARTMENTS. THERE'S EVEN 5212 02:54:49,679 --> 02:54:51,080 SEATTLE, KING COUNTY PUBLIC 5213 02:54:51,080 --> 02:54:52,782 HEALTH WHEN IT COMES TO 5214 02:54:52,782 --> 02:54:53,382 CERTIFICATE OF OCCUPANCY AND 5215 02:54:53,382 --> 02:54:57,887 PLUMBING BUT I'M ALSO, YOUR 5216 02:54:57,887 --> 02:55:00,790 DEPARTMENT HAS A LOT OF ROOM TO 5217 02:55:00,790 --> 02:55:03,826 GROW AS FAR AS THE. ADDRESSING 5218 02:55:03,826 --> 02:55:05,528 THE PERMIT AUDIT. AND ONE OF THE 5219 02:55:05,528 --> 02:55:07,897 THINGS THAT I'VE NOTICED FROM 5220 02:55:07,897 --> 02:55:11,501 MY OPINION IS THAT SOME OF THE. 5221 02:55:11,501 --> 02:55:13,669 SOME OF THE CHALLENGES THAT WE 5222 02:55:13,669 --> 02:55:15,104 HAVE THAT THAT PERMIT AUDIT 5223 02:55:15,104 --> 02:55:18,407 IDENTIFIED ARE, ARE DOWNSTREAM 5224 02:55:18,407 --> 02:55:19,275 IMPACTS OF LAYING HALF OF YOUR 5225 02:55:19,275 --> 02:55:21,811 DEPARTMENT OFF IN 2008 WITHOUT 5226 02:55:21,811 --> 02:55:23,846 HAVING THE CONTINGENT BUDGET 5227 02:55:23,846 --> 02:55:25,314 AUTHORITY, WITHOUT HAVING THIS 5228 02:55:25,314 --> 02:55:29,185 CORE STAFFING FUND. AND SO I'M 5229 02:55:29,185 --> 02:55:30,319 RELIEVED THAT WE LEARNED LESSONS 5230 02:55:30,319 --> 02:55:33,089 FROM THERE. I STILL FEEL LIKE 5231 02:55:33,089 --> 02:55:34,657 WE'RE EXPERIENCING THE IMPACTS, 5232 02:55:34,657 --> 02:55:36,926 AND I'M GOING TO DO EVERYTHING 5233 02:55:36,926 --> 02:55:38,961 THAT I CAN TO MAKE THIS 5234 02:55:38,961 --> 02:55:42,031 REDUCTION AS SMALL AS POSSIBLE. 5235 02:55:42,031 --> 02:55:44,200 BUT THESE NUMBERS ARE POINTING 5236 02:55:44,200 --> 02:55:47,069 US IN A VERY EVEN. I MEAN, JUST 5237 02:55:47,069 --> 02:55:50,673 TO EVEN GO FROM 22 TO 15 TO 7 TO 5238 02:55:50,673 --> 02:55:52,508 $1 MILLION IN THE COURSE OF FOUR 5239 02:55:52,508 --> 02:55:57,079 YEARS IS THE NUMBERS SPEAK FOR 5240 02:55:57,079 --> 02:55:58,414 ITSELF. AND SO I'M NOT GOING TO 5241 02:55:58,414 --> 02:55:59,582 SPEND THE BUDGET COMMITTEE 5242 02:55:59,582 --> 02:56:01,017 FOLLOWING UP ON THE PERMIT 5243 02:56:01,017 --> 02:56:03,719 AUDIT, BUT I CAN SAY THAT THE 5244 02:56:03,719 --> 02:56:05,588 LAST TIME THAT I'VE CHECKED IN 5245 02:56:05,588 --> 02:56:06,556 WITH THE AUDITORS, WE WERE NOT 5246 02:56:06,556 --> 02:56:08,224 AT A PLACE WHERE I FELT GOOD. I 5247 02:56:08,224 --> 02:56:10,927 KNOW, SAM, YOU'RE THE SECOND 5248 02:56:10,927 --> 02:56:11,560 DEPARTMENT DIRECTOR TO EVER TAKE 5249 02:56:11,560 --> 02:56:13,329 IT SERIOUSLY, FOLLOWED BY 5250 02:56:13,329 --> 02:56:17,366 DIRECTOR BAAB. SO I APPRECIATE 5251 02:56:17,366 --> 02:56:19,735 YOU TAKING ADDITIONAL EFFORTS, 5252 02:56:19,735 --> 02:56:22,538 BUT WE NEED TO. I CAN GET A 5253 02:56:22,538 --> 02:56:24,373 SENSE OF WHERE IT COMES FROM, 5254 02:56:24,373 --> 02:56:25,942 AND IT'S FROM A SIMILAR 5255 02:56:25,942 --> 02:56:26,509 SITUATION AS WHAT WE'RE 5256 02:56:26,509 --> 02:56:29,211 EXPERIENCING NOW. MY ONLY OTHER 5257 02:56:29,211 --> 02:56:31,080 QUESTION FOR DIRECTOR PANUCCI, 5258 02:56:31,080 --> 02:56:33,783 WE HAVE, AS WE WERE DISCUSSING 5259 02:56:33,783 --> 02:56:35,918 YESTERDAY IN THE BUDGET, WE HAVE 5260 02:56:35,918 --> 02:56:38,754 21 EMPLOYEES REVIEWING PERMITS. 5261 02:56:38,754 --> 02:56:41,857 ARE THOSE PERMIT REVIEWERS? IS 5262 02:56:41,857 --> 02:56:43,893 THAT FEE BASED COMING BACK TO 5263 02:56:43,893 --> 02:56:46,395 THE IS ARE THERE 5264 02:56:46,395 --> 02:56:48,230 -- ASPECTS OF THOSE FEES THAT 5265 02:56:48,230 --> 02:56:50,466 ARE COMING INTO THIS CORE 5266 02:56:50,466 --> 02:56:51,701 STAFFING FUND ARE THOSE FEE 5267 02:56:51,701 --> 02:56:53,102 BASED POSITIONS? ARE THEY THE 5268 02:56:53,102 --> 02:56:54,904 SAME OR DIFFERENT THAN THE 5269 02:56:54,904 --> 02:56:58,140 POSITIONS IN SDCI? AND THIS IS 5270 02:56:58,140 --> 02:56:59,041 WHY I ASKED FOR DIRECTOR BRADY 5271 02:56:59,041 --> 02:57:00,276 TO JOIN US, BUT I UNDERSTAND SHE 5272 02:57:00,276 --> 02:57:03,512 HAS A CONFLICT. 5273 02:57:03,512 --> 02:57:04,914 -- I WANT TO MAKE SURE I'M 5274 02:57:04,914 --> 02:57:08,017 UNDERSTANDING YOUR QUESTION. ARE 5275 02:57:08,017 --> 02:57:09,518 YOU ASKING ME LIKE SDCI HAS A 5276 02:57:09,518 --> 02:57:12,121 TEAM OF FULL TIME STAFF THAT IS 5277 02:57:12,121 --> 02:57:13,589 DEDICATED TO SOUND TRANSIT 5278 02:57:13,589 --> 02:57:16,258 PERMIT COORDINATION, AND THAT'S 5279 02:57:16,258 --> 02:57:18,628 FUNDED BY SOUND TRANSIT, AND 5280 02:57:18,628 --> 02:57:20,196 THAT'S NOT IMPACTED BY THESE 5281 02:57:20,196 --> 02:57:21,697 CHANGES. AND THEN ABOUT A YEAR 5282 02:57:21,697 --> 02:57:22,798 AGO, I BELIEVE, BUT THIS I 5283 02:57:22,798 --> 02:57:24,333 WASN'T HERE, BUT I DID REVISIT 5284 02:57:24,333 --> 02:57:27,136 THE ORDINANCE. THE COUNCIL, YOU 5285 02:57:27,136 --> 02:57:29,472 I THINK I'M NOT SURE PASSED. I 5286 02:57:29,472 --> 02:57:30,940 MEAN, ALL OF YOU. BUT I THINK 5287 02:57:30,940 --> 02:57:32,141 MAYBE YOU SPONSORED IT. I CAN'T 5288 02:57:32,141 --> 02:57:35,578 REMEMBER, BUT LEAD THERE WAS AN 5289 02:57:35,578 --> 02:57:36,178 ORDINANCE THAT ADDED ABOUT 50 5290 02:57:36,178 --> 02:57:38,180 POSITIONS ACROSS THE CITY TO 5291 02:57:38,180 --> 02:57:42,952 SUPPORT ST3 WORK. ONLY ONE OF 5292 02:57:42,952 --> 02:57:44,754 THOSE WAS IN THE DEPARTMENT OF 5293 02:57:44,754 --> 02:57:45,354 CONSTRUCTION AND INSPECTIONS. 5294 02:57:45,354 --> 02:57:47,423 THAT POSITION IS NOT IMPACTED BY 5295 02:57:47,423 --> 02:57:48,591 THESE CHANGES, NOR ARE THE 5296 02:57:48,591 --> 02:57:51,027 POSITIONS IN THE OTHER OTHER 5297 02:57:51,027 --> 02:57:52,061 DEPARTMENTS IMPACTED IN THIS IN 5298 02:57:52,061 --> 02:57:55,564 THIS BUDGET. SO THAT CONTINUES. 5299 02:57:55,564 --> 02:57:58,067 RIGHT NOW, WE ARE ANTICIPATING 5300 02:57:58,067 --> 02:58:00,336 THE NEED TO FILL POTENTIALLY 2 5301 02:58:00,336 --> 02:58:02,238 TO 5 PLAN REVIEW POSITIONS IN 5302 02:58:02,238 --> 02:58:06,575 THE FUTURE. IF THE ST3 WORK 5303 02:58:06,575 --> 02:58:08,411 PICKS UP AND THOSE REVENUES COME 5304 02:58:08,411 --> 02:58:09,545 IN ALONG ALONGSIDE IT. BUT RIGHT 5305 02:58:09,545 --> 02:58:12,448 NOW THE CORE TEAM AND SDCI 5306 02:58:12,448 --> 02:58:12,715 REMAINS. 5307 02:58:12,715 --> 02:58:13,582 -- THANK YOU. VERY HELPFUL. I'LL 5308 02:58:13,582 --> 02:58:14,784 FOLLOW UP A LITTLE BIT MORE. 5309 02:58:14,784 --> 02:58:16,786 COLLEAGUES. THE REASON I ASKED 5310 02:58:16,786 --> 02:58:18,454 THAT QUESTION IS BECAUSE IN 5311 02:58:18,454 --> 02:58:20,723 DOWNTURN, IT IS MOST IMPORTANT 5312 02:58:20,723 --> 02:58:22,491 THAT WE GET CIVIC UNION BUILT 5313 02:58:22,491 --> 02:58:23,959 PROJECTS ROLLING. IN THE 5314 02:58:23,959 --> 02:58:25,728 PANDEMIC, WE HAD THE WEST 5315 02:58:25,728 --> 02:58:27,430 SEATTLE BRIDGE CONSTRUCTION. WE 5316 02:58:27,430 --> 02:58:27,963 HAD THE CONVENTION CENTER 5317 02:58:27,963 --> 02:58:29,598 CONSTRUCTION, WE HAD THE 5318 02:58:29,598 --> 02:58:30,533 WATERFRONT CONSTRUCTION JUST 5319 02:58:30,533 --> 02:58:31,734 AHEAD OF THAT AND ENDING DURING 5320 02:58:31,734 --> 02:58:33,269 THE PANDEMIC. WE HAD KEY ARENA, 5321 02:58:33,269 --> 02:58:37,239 CLIMATE PLEDGE, ARENA 5322 02:58:37,239 --> 02:58:38,774 CONSTRUCTION. WE HAVE LIGHT RAIL 5323 02:58:38,774 --> 02:58:42,645 COMING, BUT WE DON'T HAVE ANY 5324 02:58:42,645 --> 02:58:43,612 MAJOR CITY FUNDED PROJECTS GOING 5325 02:58:43,612 --> 02:58:46,816 ON RIGHT NOW, WHICH IS ONLY 5326 02:58:46,816 --> 02:58:47,950 CREATING A BIGGER NEGATIVE 5327 02:58:47,950 --> 02:58:50,553 IMPACT ON OUR SALES TAX, ON OUR 5328 02:58:50,553 --> 02:58:53,589 PROPERTY TAX ET-CETERA. AND SO 5329 02:58:53,589 --> 02:58:55,991 THAT IS THE POWER OF GOVERNMENT 5330 02:58:55,991 --> 02:58:58,094 MONEY, IS THAT IT CAN STIMULATE 5331 02:58:58,094 --> 02:59:00,763 OUR ECONOMY WHILE HIRING GOOD, 5332 02:59:00,763 --> 02:59:03,499 WELL-PAID UNION JOBS. SO I 5333 02:59:03,499 --> 02:59:04,366 DIDN'T HAVE ANY OTHER 5334 02:59:04,366 --> 02:59:05,835 QUESTIONS. ANYTHING THAT YOU'D 5335 02:59:05,835 --> 02:59:09,004 LIKE TO RESPOND TO ME ON? 5336 02:59:09,004 --> 02:59:12,208 -- ONE THING COUNCILMEMBER 5337 02:59:12,208 --> 02:59:15,678 STRAUSS, I WAS PART OF THAT 2009 5338 02:59:15,678 --> 02:59:18,514 REDUCTION IN PROJECT HIRE. I 5339 02:59:18,514 --> 02:59:20,750 WENT TO SEATTLE CENTER FOR FOUR 5340 02:59:20,750 --> 02:59:24,086 YEARS AS A CREW CHIEF, AND WHEN 5341 02:59:24,086 --> 02:59:25,421 THE OPPORTUNITY, WHEN THE 5342 02:59:25,421 --> 02:59:27,056 ECONOMY PICKED UP AGAIN, I WAS 5343 02:59:27,056 --> 02:59:30,693 WAS ABLE TO COME BACK TO DPD AT 5344 02:59:30,693 --> 02:59:34,830 THE TIME. AND SO NOW FOR ME TO 5345 02:59:34,830 --> 02:59:37,266 BE IN THIS POSITION IS EXTREMELY 5346 02:59:37,266 --> 02:59:38,567 EMOTIONAL. IT'S, IT'S IT'S A 5347 02:59:38,567 --> 02:59:42,304 HUMAN, YOU KNOW, COMPONENT TO 5348 02:59:42,304 --> 02:59:44,373 THIS THAT IT LEADS ME TO, TO USE 5349 02:59:44,373 --> 02:59:47,843 THE BEST JUDGMENT AND ACT WITH 5350 02:59:47,843 --> 02:59:50,646 CHARACTER. SO I JUST WANT TO 5351 02:59:50,646 --> 02:59:52,781 THROW THAT OUT TO THE, THE, THE 5352 02:59:52,781 --> 02:59:54,350 COUNCIL HERE THAT, YOU KNOW, 5353 02:59:54,350 --> 02:59:57,052 THESE ARE REAL CONSIDERATIONS 5354 02:59:57,052 --> 03:00:00,022 WITH REAL PEOPLE. AND WE'RE VERY 5355 03:00:00,022 --> 03:00:02,458 MUCH AWARE OF THE IMPACTS. 5356 03:00:02,458 --> 03:00:03,993 -- SO VERY WELL, SAID DIRECTOR. 5357 03:00:03,993 --> 03:00:05,694 WELL, I KNOW IT'S SEVEN PEOPLE 5358 03:00:05,694 --> 03:00:07,930 IN YOUR DEPARTMENT. THOSE ARE 5359 03:00:07,930 --> 03:00:10,900 SEVEN FAMILIES, SEVEN RENT 5360 03:00:10,900 --> 03:00:13,636 PAYMENTS, SEVEN MORTGAGES, SEVEN 5361 03:00:13,636 --> 03:00:15,237 TAKING CARE OF TAKING THE KIDS 5362 03:00:15,237 --> 03:00:18,440 TO WHATEVER PRACTICE THEY'RE 5363 03:00:18,440 --> 03:00:21,143 GOING TO. AND IT'S THE MOST 5364 03:00:21,143 --> 03:00:23,879 DIFFICULT DECISION WE CAN MAKE. 5365 03:00:23,879 --> 03:00:24,947 COUNCILMEMBER LIN TAKE US HOME. 5366 03:00:24,947 --> 03:00:26,248 -- ALL RIGHT. THANK THANK YOU, 5367 03:00:26,248 --> 03:00:30,619 CHAIR AND I APPRECIATE YOUR 5368 03:00:30,619 --> 03:00:33,689 HIGHLIGHTING THE IMPORTANCE OF 5369 03:00:33,689 --> 03:00:37,359 THESE POSITIONS, THE IMPACT TO 5370 03:00:37,359 --> 03:00:39,895 OUR OUR CITY STAFF. YOU KNOW, 5371 03:00:39,895 --> 03:00:42,631 POTENTIAL LOSS OF INSTITUTIONAL 5372 03:00:42,631 --> 03:00:43,833 KNOWLEDGE, ABSOLUTELY CONCERNED 5373 03:00:43,833 --> 03:00:45,467 ABOUT LIKE WHAT HAPPENED IN 2008 5374 03:00:45,467 --> 03:00:47,169 AND DON'T WANT TO SEE A REPEAT, 5375 03:00:47,169 --> 03:00:49,405 REPEAT OF THAT. SO APPRECIATE 5376 03:00:49,405 --> 03:00:51,407 THE THOUGHTFULNESS OF TRYING TO 5377 03:00:51,407 --> 03:00:52,641 MINIMIZE THE IMPACT TO STAFF. 5378 03:00:52,641 --> 03:00:54,610 AND AGAIN, HOPEFULLY WE CAN GET 5379 03:00:54,610 --> 03:00:57,279 THIS SHIP TURNED AROUND A BIT. I 5380 03:00:57,279 --> 03:00:59,048 DO THINK, YOU KNOW, WHEN 5381 03:00:59,048 --> 03:01:05,120 ECONOMIC TIMES ARE BETTER, I 5382 03:01:05,120 --> 03:01:08,357 THINK SOME OF OUR BUSINESSES, 5383 03:01:08,357 --> 03:01:11,193 DEVELOPERS CAN SORT OF HANDLE 5384 03:01:11,193 --> 03:01:12,127 THE IMPACTS FROM DELAYS AND SORT 5385 03:01:12,127 --> 03:01:15,030 OF OTHER, YOU KNOW, SUBSTANTIVE 5386 03:01:15,030 --> 03:01:16,232 REQUIREMENTS THAT WE IMPOSE UPON 5387 03:01:16,232 --> 03:01:18,000 THEM. BUT WHEN THE HEADWINDS ARE 5388 03:01:18,000 --> 03:01:19,068 AS STRONG AS THEY ARE RIGHT NOW, 5389 03:01:19,068 --> 03:01:22,137 I JUST THINK IT REALLY 5390 03:01:22,137 --> 03:01:23,272 HIGHLIGHTS HOW WE WE NEED TO 5391 03:01:23,272 --> 03:01:26,709 TAKE A SHARPER, CLOSER LOOK AT 5392 03:01:26,709 --> 03:01:29,478 AND JUST BE THAT MUCH MORE 5393 03:01:29,478 --> 03:01:30,846 RESPONSIVE IN OUR PERMITTING AND 5394 03:01:30,846 --> 03:01:31,814 TAKING A LOOK. AND SO OBVIOUSLY, 5395 03:01:31,814 --> 03:01:35,985 WE'RE GOING TO BE DOING THAT 5396 03:01:35,985 --> 03:01:38,020 WITH THE DISCUSSION WITH THE 5397 03:01:38,020 --> 03:01:39,021 MAYOR'S HOUSING TASK FORCE, 5398 03:01:39,021 --> 03:01:41,290 LOOK FORWARD TO SORT OF SEEING 5399 03:01:41,290 --> 03:01:42,825 OTHER RECOMMENDATIONS THAT COME 5400 03:01:42,825 --> 03:01:45,261 FROM THEM. AND, YOU KNOW, 5401 03:01:45,261 --> 03:01:46,595 HOPEFULLY THAT WORK WILL NOT 5402 03:01:46,595 --> 03:01:49,398 JUST HELP IN THIS SHORT TERM. 5403 03:01:49,398 --> 03:01:51,100 BUT THEN EVEN HELP, AS YOU KNOW, 5404 03:01:51,100 --> 03:01:52,434 MAYBE THOSE HEADWINDS GET A 5405 03:01:52,434 --> 03:01:54,904 LITTLE BIT LESS THE HARD WORK 5406 03:01:54,904 --> 03:02:01,677 WILL, PAY OFF. I ALSO JUST THINK 5407 03:02:01,677 --> 03:02:03,812 THAT, YOU KNOW, AS YOU 5408 03:02:03,812 --> 03:02:07,182 MENTIONED, CHAIR STRAUSS, THE 5409 03:02:07,182 --> 03:02:09,084 THE IMPACTS FROM DEVELOPMENT 5410 03:02:09,084 --> 03:02:09,852 DOWNTURNS ARE MUCH. YOU KNOW, WE 5411 03:02:09,852 --> 03:02:11,153 TALK A LOT ABOUT SORT OF, YOU 5412 03:02:11,153 --> 03:02:12,655 KNOW, THE NEED FOR HOUSING 5413 03:02:12,655 --> 03:02:16,525 SUPPLY, BUT THERE ARE SO MANY 5414 03:02:16,525 --> 03:02:17,192 MULTIPLIERS, WHETHER IT'S JOBS, 5415 03:02:17,192 --> 03:02:19,128 WHETHER IT'S THE CONSTRUCTION 5416 03:02:19,128 --> 03:02:20,396 TAX, THE SIDEWALKS, WHETHER 5417 03:02:20,396 --> 03:02:22,131 IT'S THE PERMIT FEES, AND ON 5418 03:02:22,131 --> 03:02:24,166 AND ON AND ON. AND REALLY 5419 03:02:24,166 --> 03:02:24,900 APPRECIATE THE DISCUSSION ABOUT 5420 03:02:24,900 --> 03:02:29,705 THE SMALL BUSINESS. YOU KNOW, 5421 03:02:29,705 --> 03:02:31,540 SUPPORT DELAYS IN PERMITTING FOR 5422 03:02:31,540 --> 03:02:32,808 SMALL BUSINESS CAN BE 5423 03:02:32,808 --> 03:02:35,511 DEVASTATING. AND SO, YOU KNOW, I 5424 03:02:35,511 --> 03:02:36,679 JUST I KNOW YOU KNOW THIS AND 5425 03:02:36,679 --> 03:02:40,516 YOUR STAFF DO A GREAT JOB, BUT 5426 03:02:40,516 --> 03:02:42,051 JUST WANT TO REALLY REINFORCE 5427 03:02:42,051 --> 03:02:46,121 THE NEED FOR THAT CUSTOMER 5428 03:02:46,121 --> 03:02:47,356 SERVICE SORT OF FOCUS. AND IT 5429 03:02:47,356 --> 03:02:48,691 MAKES ALL THE DIFFERENCE. AND, 5430 03:02:48,691 --> 03:02:50,926 YOU KNOW, SDCI PLAYS AN OUTSIZED 5431 03:02:50,926 --> 03:02:53,595 SORT OF ROLE IN TERMS OF THAT 5432 03:02:53,595 --> 03:02:55,497 CUSTOMER SERVICE. SO MANY PEOPLE 5433 03:02:55,497 --> 03:02:57,366 DO INTERFACE WITH SDCI, WHETHER 5434 03:02:57,366 --> 03:03:00,803 IT'S ON THE PERMIT SIDE OR ON 5435 03:03:00,803 --> 03:03:01,870 THE ENFORCEMENT SIDE. AND SO 5436 03:03:01,870 --> 03:03:02,538 JUST REALLY WANT TO THANK YOU 5437 03:03:02,538 --> 03:03:06,508 AND YOUR STAFF FOR WHAT YOU DO 5438 03:03:06,508 --> 03:03:07,476 AND JUST WANT TO REINFORCE SORT 5439 03:03:07,476 --> 03:03:10,879 OF THE, THE, THE AT LEAST, YOU 5440 03:03:10,879 --> 03:03:12,481 KNOW, CALL FROM, FROM ME. BUT 5441 03:03:12,481 --> 03:03:13,949 I'M SURE A LOT OF MY COLLEAGUES 5442 03:03:13,949 --> 03:03:16,652 WOULD AGREE, YOU KNOW, REALLY 5443 03:03:16,652 --> 03:03:20,089 LEANING INTO THAT SORT OF CAN DO 5444 03:03:20,089 --> 03:03:20,622 PROBLEM SOLVING, CUSTOMER 5445 03:03:20,622 --> 03:03:25,060 SERVICE APPROACH. SO THANK YOU 5446 03:03:25,060 --> 03:03:26,729 -- THANK YOU. WITH THAT, I AM 5447 03:03:26,729 --> 03:03:28,897 RECEIVING THE NONVERBAL CUES 5448 03:03:28,897 --> 03:03:31,300 FROM MY COLLEAGUES THAT IT IS 5449 03:03:31,300 --> 03:03:32,868 LUNCHTIME AND WITH CITY GRIND 5450 03:03:32,868 --> 03:03:35,170 ONLY OPEN ANOTHER 27 MINUTES, WE 5451 03:03:35,170 --> 03:03:36,638 WILL TAKE LUNCH FOR ABOUT AN 5452 03:03:36,638 --> 03:03:38,640 HOUR. OPCD HAS BEEN WAITING HERE 5453 03:03:38,640 --> 03:03:39,742 PATIENTLY. THANK YOU FOR BEING 5454 03:03:39,742 --> 03:03:40,809 EARLY, WHICH IS ON TIME. IN THE 5455 03:03:40,809 --> 03:03:42,678 WORDS OF COUNCILMEMBER KETTLE. 5456 03:03:42,678 --> 03:03:46,248 AND WE WILL BE BACK HERE. I'M 5457 03:03:46,248 --> 03:03:47,316 GOING TO GIVE US THE FULL HOUR. 5458 03:03:47,316 --> 03:03:51,787 SO. 135 WHICH MEANS WE START 5459 03:03:51,787 --> 03:03:53,255 OPCD AT 136, WHICH MEANS WE 5460 03:03:53,255 --> 03:03:59,728 SHOULD ALL BE HERE AT 134. WITH 5461 03:03:59,728 --> 03:04:01,930 THAT, IF THERE IS NO OBJECTION, 5462 03:04:01,930 --> 03:04:03,732 THE SELECT BUDGET COMMITTEE WILL 5463 03:04:03,732 --> 03:04:05,734 BE IN RECESS UNTIL 1:35 P.M.. 5464 03:04:05,734 --> 03:04:06,769 HEARING NO OBJECTION, THE SELECT 5465 03:04:06,769 --> 03:04:08,370 BUDGET COMMITTEE IS IN RECESS 5466 03:04:08,370 --> 03:04:11,040 FOR ONE HOUR. THANK YOU