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HomeMy WebLinkAboutDecember 16 PFC Agenda Questions and Responses 1 December 16 PFC Agenda Questions and Responses Date Submitted By Type Item ID Number Department Question/Comment Draft Response 12/15/2025 Brian Beck Items for Consideration B DCPFC25-005 Community Slide 9 presentation (also manual p 6) : Should we not also With the exception of private funding leveraged, the reporting Services report on rents and square footage? information reccomended here includes the information we already make available to the public on affordable housing.The reporting of rent is included in the unit reporting, and the goal of gathering more granular market rate and square footage across all affordable properties in the City is ongoing. 12/15/2025 Brian Beck Items for Consideration B DCPFC25-005 Community Manual Project Requirements: Item 5 of the Project Requirements in the Policies and Procedures Services Given our recent approved prioritization of 30%and 60%AMI, manual refers specifically to minimum affordability requirements why is Rule 5a (10% reserved for 60%AMI) and Rule 5b (40% under Chapter 303 of the Texas Local Government Code. Staff reserved for 80%AMI) not recommended for a change to addresses the prioritization of 30% and 50%AMI units in item 6 of the better align - indeed why are 80%AMI rules still indicated if project requirements, which requires applicants to pass a scoring these do not Serve Denton? threshold based primarily on the inclusion of 30%and 50% units. The 2020 UT-Austin Report on PFCs recommended best- practices for PFCs to include more requirements than simply Many of the best practices for PFC's recommended in the 2020 UT AMI, including rent-control, utility allowances, voucher and report were implemented at the state level during the 88th legislative income-source requirements,tenants-rights, and limits on session (H.B. 2071). A review of these changes can be found in the property acquisition flips. How will these be incorporated into Agenda Information Sheet for Item C.Two that were not the Project Requirements? implemented at the state level were a competitive application Appendix A: Definitions process and significantly deeper income targeting, both of which are Given our prior discussions, should we not explicitly state that being implemented locally by the policies and procedures. 80%AMI will not be considered "Affordable" in Denton due to the disparity in Denton MI vs AMI of approx. $27K For clarity of language,the Policies and Procedures manual aligns the definition of'Affordable'with Chapter 303 of the Texas Local Government Code. It also includes definitions for Very Low and Extremely Low Income Households, which are prioritized by the scoring matrix. Staff will continue to rely on 'Affordable for Denton' terminology to address Denton-specific needs while utilizing the standard language of the broader industry. 12/15/2025 Brian Beck Items for Consideration C DCPFC25-004 Community 3.8 GM : Why change from City Manager Designee to This allows for greater alignment with other work being led by the Services CommSery Dir? Does this change not create potential conflicts Community Services Director. City Management is kept informed and if the hierarchy of the city changes? guides strategic direction of City endevours. Staff do not forseee any potential conflict. 12/15/2025 Brian Beck Items for Consideration C DCPFC25-004 Community 5.1.b Role of City of Staff: If this section is removed, where is it When the PFC has revenue or expenses, City staff will procure Services specified that City staff will be utilized for bookkeeping accounting services to be paid through the relevant project services?Similarly for 5.1.c, if removed where is it specified that agreement.Any books regarding the PFC's revenue or expenses will bookkeeping records held by the city can be audited? (The rule be considered the PFC's books and can be audited. PFC and City change only says the PFC's books can be audited - not the city bookkeeping will be kept separate. 2 12/15/2025 Brian Beck Items for Consideration C DCPFC25-004 Community 5.2.b Similarly, by striking the city language, where is it specified When the PFC has revenue or expenses, City staff will procure Services who manages accounts and investments for the PFC? accounting services to be paid through the relevant project agreement.This may change over time if the PFC begins to have significant revenue to manage. 12/15/2025 Brian Beck Items for Consideration C DCPFC25-004 Community 7.6 Why is not beneficial to require staff as the preferred PFC law and underwriting are both specialized knowledge sets which Services vendor? require experienced practitioners. In order to protect both the PFC and the City's interests, staff are reccommending to procure vendors with significant experience in PFC deals and certifications necessary to secure appropriate lending partnerships. 12/15/2025 Brian Beck Items for Consideration C DCPFC25-004 Community 9.1. Please add color to this revision by giving an example of If the PFC did a deal to build a new mixed-income apartment Services "fee in lieu"? community in Denton, that new development would be entirely property-tax exempt. Fee in lieu would be a negotiated payment from the development revenue to the taxing entity or entities of the board's choice (e.g.the general fund, DISD,the County, etc.)to mitigate that financial impact of lost revenue. Fee in lieu is not typically equal to the full amount of exempted taxes, and is negotiated at will by the PFC board. This allows the board greater discretion in how revenue is spent. 12/15/2025 Brian Beck Items for Consideration D DCPFC25-003 Community p3:Tenant protections of 250% remains a barrier for LMI This is a standard from the updated Chapter 303 of TX Local Govt. Services households. Should this not be lower? Code and is consistent with the City's 2.12 contracts and program participation in the housing tax credit policy. It is specifically phrased as minimum income qualifications being no higher than 250%of the household's monthly payment, meaning the income qualifications flex for households receiving assistance through a Housing Choices Voucher or other program. The 250% minimum income qualification becomes less of a barrier if the rent to be exceeded is fixed specifically for VLI and ELI households.This sets the minimum expectation, but does not limit our ability to negoitate. 12/15/2025 Brian Beck Items for Consideration D DCPFC25-003 Community As in item B, and the 2020 UT-Austin PFC Report recommended Of the 10 reccommendations from the 2020 UT-Austin Report, seven Services best-practices for PFCs- how will these best-practices be were addressed significantly by H.B. 2071 and are now state law.The incorporated? reccommendation for annual reports to the Texas Comptroller was not included in the update, however, staff will keep program-level metrics and report them publicly on the City website, as well as participating in and publishing any audits.The reccommendation for a competitive application process is being implemented by the scoring matrix in the policies and procedures manual. Lastly,the reccomendation for deeper affordability will be addressed by the scoring matrix in the policies and procedures manual. 12/15/2025 Brian Beck Items for Consideration D DCPFC25-003 Community p3: Recognizing that the PFC is not required to utilize city staff They will be procured directly by the PFC using an assessment of Services as a preferred service provider, particularly for legal counsel, experience, qualifications, and knowledge. Legal counsel will be how are these services to be procured if not through the city? retained on a project-by-project basis by the City Attorney.