7.a. Consideration of a Resolution Authorizing a Memorandum of Understanding with the Coastal Community Development Corporation - Josh Gruber, Deputy Town Manager

[7.a. Consideration of a Resolution Authorizing a Memorandum of Understanding with the Coastal Community Development Corporation - Josh Gruber, Deputy Town Manager]

WELL I WILL NOW HAVE CONSIDERATION OF A RESOLUTION MEMORANDUM OF UNDERSTANDING THE POST DEVELOPMENT CORPORATION AND THE BACK OFFICE TAKING OVER .

YES SIR. I TAKE THIS OPPORTUNITY WE'RE GOING TO KIND OF MOVE THROUGH THE MEMORANDUM HERE AND THEN WE'RE GOING TO GO THROUGH THE DRAFT DOCUMENT ITSELF AND THEN WE'LL START ANSWERING ANY QUESTIONS THAT YOU SO AGAIN JUST TO KIND OF COVER SOME OF THE BACKGROUND INFORMATION THIS MATTER THE TOWN WAS CONTRACTED BY REPRESENTATIVES OF THE COMMUNITY DEVELOPMENT CORPORATION WHICH IS A SOUTH CAROLINA NONPROFIT CORPORATION.

[01:00:04]

THEY WERE REQUESTING FUNDING SPECIFICALLY FOR THE PURPOSE OF UTILIZING IT TOWARDS THE ACQUISITION OF VARIOUS REAL ESTATE ASSETS ON HILTON HEAD ISLAND THAT THEY WOULD THEN USE FOR PURPOSES PROVIDING AFFORDABLE WORKFORCE HOUSING IN TERMS THEIR PREVIOUS INTERACTIONS THEY MADE A PRESENTATION TO THIS COMMITTEE BACK IN AUGUST AT WHICH POINT IN TIME THEY THEIR BUSINESS MODEL KIND OF WHAT THEIR PLANS WERE FOR PHASE ONE HOW THOSE FINANCES WOULD WORK THERE AM I RANGES AND THEN I BELIEVE THERE WAS ALSO THE POLICY DOCUMENTS WITH REGARDS TO THEY WOULD GO ABOUT SELECTING THE TENANTS ALL THAT INFORMATION WAS INCLUDED IN THE BACKUP MATERIALS FOR TODAY JUST AS A REMINDER WHAT WAS PREVIOUSLY PRESENTED FOLLOWING THAT MEETING STAFF WAS ASKED TO DO A COUPLE OF THINGS.

ONE WE WERE TASKED WITH CONTINUING TO PURSUE MOVEMENT ON ACT 57 WHICH IS WHAT WILL ALLOW THE USE OF STATE ACCOMMODATIONS FOR WORKFORCE HOUSING PURPOSES THAT IS AND CONTINUES TO MOVING FORWARD. THE SECOND WAS TO BEGIN PREPARING A MEMORANDUM OF UNDERSTANDING THAT CAN BE BROUGHT FORWARD TO THIS COMMITTEE FOR DISCUSSION THAT WOULD OUTLINE THE VARIOUS FUNCTIONAL RESPONSIBILITIES BETWEEN THE TOWN AND COASTAL COMMUNITY DEVELOPMENT CORPORATION. SO STAFF HAS DONE WE'VE MET WITH REPRESENTATIVES OF THE CDC TO REVIEW THIS DOCUMENT. THEY'RE AWARE OF IT.

WE SHARED IT WITH MEMBERS OF THE COMMITTEE IN ADVANCE OF THIS MEETING WE DID RECEIVE SOME COMMENTS FROM MR. STANFORD COMMENTS WERE INCLUDED WITHIN THE DRAFT DOCUMENT.

THEY ARE SHOWN AS UNDERLINE ITEMS WITH REGARDS TO HIS PARTICULAR PROPOSED REVISIONS TO THE DRAFT DOCUMENT TRYING TRY TO FIND A MOUSE HERE CAN YOU PULL UP THE DRAFT MEMO YOU ARE ACTUALLY WE NEED TO GO DOWN BELOW THAT I'M SORRY IT'S THE DRAFT MEMO BUT WITH THE CODES.

THANK YOU. ALL RIGHT. SO IN WALKING THROUGH THIS DOCUMENT AS I INDICATED, THE PROPOSED REVISIONS THAT WERE PROVIDED BY COUNCILMAN STANFORD ARE IDENTIFIED WITH UNDERLINE. BUT ESSENTIALLY WHAT IT DOES IS IT OUTLINES THE ROLES AND RESPONSIBILITIES OF BOTH PARTIES. SO FIRST IT WOULD REQUIRE THE COASTAL COMMUNITY DEVELOPMENT CORPORATION TO SUBMIT A PROPOSED BUDGET AS PART OF THE AFFILIATED AGENCY FUNDING PROGRAM PRESUMABLY FOR ANY FUTURE FUNDING REQUESTS THAT MAY COME IN IN ADDITION SPECIFICALLY IDENTIFIES HOW THAT FUNDING WILL BE USED WHICH TO ACQUIRE REAL PROPERTY WHICH COULD INCLUDE SINGLE AND OR MULTIFAMILY MULTIFAMILY WORKFORCE HOUSING UNITS WITHIN THE MUNICIPAL BOUNDARIES OF HILTON HEAD ISLAND.

SO IT IS SPECIFICALLY LIMITED TO ONLY THOSE UNITS THAT ARE IN THE TOWN'S BOUNDARIES.

IT WOULD REQUIRE THAT THEY PREPARE A MAINTENANCE PLAN TO IDENTIFY THEY WILL PROVIDE FOR THE LONG TERM MAINTENANCE OF THOSE UNITS THAT ARE ACQUIRED.

IT WILL IDENTIFY HOW THEY WILL GO ABOUT SELECTING AREA MEDIAN INCOMES FOR THE AVAILABLE WORKFORCE HOUSING UNITS AND THEN IT GOES ON TO TALK ABOUT THAT THERE MUST BE SOME KIND OF RESTRICTIONS PUT IN PLACE TO ENSURE THE LONG AFFORDABLE NATURE OF THOSE UNITS THAT ARE REQUIRED. AND THEN IT GOES ON TO TALK ABOUT ANNUAL REPORTING AND TRANSPARENCY ESSENTIALLY REQUIRING THAT ANY FUNDING THAT'S PROVIDED TO BE TRACKED AND ACCOUNTED FOR SEPARATELY AND THEN ACCOUNTING PROVIDED US ON AN ANNUAL BASIS.

YOU CAN SEE THAT ONE OF THE COUNCILMAN STANFORD'S REQUIREMENTS WAS THAT THE FINANCIAL BE SIGNED BY A CERTIFYING OFFICER WITHIN THE COMMUNITY COASTAL COMMUNITY DEVELOPMENT CORPORATION AND THEN THAT WOULD BE PROVIDED TO US ON AN ANNUAL BASIS AND THEN OF COURSE THEY WOULD PERFORM INDEPENDENT AUDIT REVIEW. THIS LANGUAGE I WOULD HIGHLIGHT IS SIMILAR TO OTHER AFFILIATED AGENCIES THAT WE HAVE WE REQUIRE SIMILAR FINANCIAL REPORTING SIMILAR STANDARDS IN TERMS OF TRACKING ANY MONEY THAT'S PROVIDED TO US IS A LITTLE BIT DIFFERENT IN THAT SOME OF THE AFFILIATED AGENCIES PROVIDE THE SERVICE INTERNALLY WITH THIS PARTICULAR ONE THEY WOULD BE REQUIRED TO PROVIDE THAT SERVICE EXTERNALLY AS A SEPARATE IN ADDITION TO RECEIVING COUNCILMAN STANFORD'S COMMENTS THERE WAS ALSO A NUMBER OF QUESTIONS AND COMMENTS THAT COME UP THAT I WANT TO TAKE AN OPPORTUNITY GO OVER AS WELL AND I'VE THOSE WITHIN THE STAFF MEMORANDUM. SO THE FIRST QUESTION THAT CAME IN IS THERE A DEFINITION OF AFFILIATED THERE'S NOT A DEFINITION OF AFFILIATED AGENCY WITHIN THE MIRIAM AROUND OF UNDERSTANDING ITSELF. HOWEVER A DEFINITION EXISTS VIRTUE OF THE FACT THAT THE TOWN HAS CREATED AN AFFILIATED AGENCY PROGRAM THAT HAS AN APPLICATION DOCUMENT AND WITHIN THAT DOCUMENT IT LISTS THE FOUR CRITERIA THAT WERE OUTLINED WITHIN THE SUPREME COURT CASE THAT OUTLINES HOW PUBLIC PURPOSES DETERMINED FOR

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EXPENDING PUBLIC FUNDS SO IT DOESN'T SPECIFICALLY LIMIT IT TO ANY SPECIFIC TYPE OF AGENCY OR SPECIFIC FUNCTION. WHAT IT ESSENTIALLY BOILS DOWN TO IS THAT THE ENTITY THAT'S RECEIVING FUNDING IS ESSENTIALLY PROVIDING A PRIMARILY PUBLIC SERVICE ON OUR BEHALF BUT PERFORMING IT AS A PUBLIC ENTITY SO THAT'S ABOUT AS BEST OF A DEFINITION AS WE HAVE TO PROVIDE. BUT OF THERE'S NOT SPECIFICALLY ONE IN THIS DOCUMENT ITSELF BUT NEITHER IS THERE IN ANY OF OTHER OR AFFILIATED AGENCY PROGRAMS WE JUST REQUIRE TO GO THROUGH THAT APPLICATION PROCESS ON AN ANNUAL BASIS. I WAS RAISING IN THAT REGARD WAS AS A RESULT OF ACTIONS WHICH WE MAY TAKE THE NEXT MONTH OR TWO THERE MAY BE OTHER AGENCIES THAT ARE NOT ON THE LIST THAT WILL DECIDE THEY WOULD LIKE TO MAKE AN APPLICATION. I DON'T KNOW THAT IT HAS TO BE PART OF THIS PROCESS BUT IT SEEMED TO ME TO BE DESIRABLE AND AN OVERALL BASIS TO HAVE A FRAMEWORK THAT DEFINES WHAT THIS IS AND HELPS THE PUBLIC AGENCIES THAT WANT TO APPLY KNOW THEY COULD QUALIFY OR NOT.

YES, SIR. AND THAT WAS REALLY THE ESSENTIAL REASON FOR WHY THE AFFILIATED AGENCY PROGRAM AS IT EXISTS WAS CREATED WAS TO ENSURE THAT IT WAS NOT PERCEIVED AS US JUST DIRECTLY DEALING WITH LIMITED NUMBERS OF PEOPLE.

IT OPENS UP THE PROCESS TO REALLY ANYBODY WHO THINKS THAT THEY'RE GOING TO PROVIDE A SERVICE BUT THEN REQUIRES YOU TO FILL OUT THAT DOCUMENTATION TO SHOW THAT YOU CAN PROVIDE US WITH FINANCIAL STATEMENTS, YOU CAN PROVIDE US WITH OTHER INFORMATION THAT WE WOULD NEED IN ORDER TO VET YOUR REQUEST AND DETERMINE WHETHER OR NOT IT DOES CONSTITUTE A TRULY VALID PURPOSE. QUESTION DO WE NEED TO GET INTO THE CONSEQUENCES OF A TENANT EXCEEDING THE INCOME LIMITATION SUCH AS BY PROMOTION, MARRIAGE OR OTHERWISE? FOR OUR PURPOSES I DON'T BELIEVE THAT WE DO. WE'RE NOT A HOUSING AGENCY WE'RE NOT MONITORING THIS. BUT CERTAINLY IF THAT'S A CONCERN OF THE COMMITTEE AND A CONCERN OF COUNSEL A POLICY STANDPOINT WITHIN THE DOCUMENTATION THAT WE WOULD REQUIRE IN TERMS OF HOW THEY WOULD GO ABOUT SELECTING INDIVIDUALS FOR TENANCY WITHIN THESE UNITS, THEY COULD ALSO ADDRESS THOSE QUESTIONS ABOUT HOW THEY WOULD DEAL WITH A SITUATION WHEN A TENANT WHO'S A UNIT WOULD ULTIMATELY EXCEED THE INCOME LIMITATIONS.

THAT WAS A QUESTION THAT THEY WOULD HAVE TO ANSWER. BUT IF WE NEED TO WE CAN INCORPORATE THAT INTO THE REQUIREMENTS GOING FORWARD FOR ANY KIND OF REPORTING ON THIS MATTER. IT SEEMS TO ME, JOSH, THAT THE AGREEMENT COULD PROVIDE THAT UPON RENEWAL OF A LEASE THAT COULD SEE IT CONFIRM THAT THEY FALL WITHIN AN APPLICABLE AMI LIMITS. YES SIR AND THAT'S SOMETHING I AND I KNOW A QUESTION LATER ON LOOKS AT SPECIFICALLY THE AMA PMI RANGES ITSELF SO ASSUMING ONCE WE DECIDE UPON WHAT THOSE NUMBERS OR FIGURES SHOULD BE THAT WOULD THEN BE THE STANDARD UPON WHICH ANY FUTURE RENTALS WITHIN THIS PROGRAM SHOULD MET AT LEAST INSOFAR AS RENTAL UNITS THAT ARE ATTRIBUTABLE TO THE FUNDING THAT WE'RE PROVIDING AND THAT DOES BECOME LITTLE BIT DIFFICULT GOING FORWARD IN THAT IF OUR MONEY GETS USED WITH OTHER FUNDING SOURCES TO ACQUIRE THESE FUNDS, WHICH ONES ARE ATTRIBUTABLE TO US? WHICH ONES ARE ATTRIBUTABLE TO OTHERS? WHAT STANDARDS WILL THOSE APPLY AND WHAT THEY WON'T APPLY TO? AND THAT'S SOMETHING WE WILL NEED TO FLESH OUT AS THIS MOVES FORWARD ONLY FUNGIBLE.

YES, SIR. ANOTHER QUESTION WAS DO WE WANT TO CONSIDER HAVING YEAH, LET ME SAY THIS THAT IF WE AREN'T CLEAR THE MEMO YOU WE HAVE A SITUATION DOWN THE ROAD WHERE THE TOWN DISAGREES WITH THE BOARD CDC WHO PREVAILS AT THIS POINT ONCE WE'VE PROVIDED THE FUNDING AND THEY'VE USED THE FUNDING IN THE MANNER THANK YOU OUR OVERSIGHT REALLY KIND OF CEASES THAT POINT. THE NEXT QUESTION THAT WAS SUBMITTED WAS DO WE WANT TO CONSIDER HAVING A REPRESENTATIVE ON THEIR BOARD? CERTAINLY A TERM THAT SUBJECT TO NEGOTIATION WE'VE DONE THAT WITH OTHER ENTITIES SUCH AS THE ISLAND RECREATION ASSOCIATION WHO'S ALSO AN AFFILIATED AGENCY BUT THERE'S ALSO ONES THAT WE DON'T HAVE REPRESENTATION ON THE BOARD. SO THAT'S REALLY KIND OF A POLICY DECISION FOR THE COMMITTEE AND ULTIMATELY COUNCIL IF THAT'S SOMETHING THAT THEY BELIEVE IS NECESSARY IF THIS FUNDING IS PROVIDED. WHAT I HAD IN MIND WAS THE POSSIBILITY OF STAFF MEMBER PARTICIPATING WITH THEM. WE'D HAVE A CONTINUAL FEEDBACK AS TO HOW THINGS ARE GOING IF IT'S JUST A QUESTION OF OBTAINING WE CAN REQUIRE REPORTING, WE CAN REQUIRE DOCUMENTATION. I WOULD SAY THAT IF YOU'RE GOING TO PUT SOMEBODY ON THEIR BOARD YOU'RE PUTTING THEM ON THE BOARD FOR THE PURPOSES HELPING TO INFLUENCE THEIR POLICY MAKING DECISION IN TERMS OF HOW THEY'RE GOING OPERATE. THAT TO ME IS PROBABLY NOT A STAFF I DON'T KNOW IF IT'S AN ELECTED OFFICIAL THAT MAY BE JUST ANOTHER CITIZEN APPOINTEE BUT SOMEBODY WITH THE REQUISITE KNOWLEDGE AND TRAINING WITHIN THOSE AREAS THAT THEY CAN MAKE INFORMED DECISIONS AND THEN REALLY PARTICIPATE A FULL BOARD MEMBER AND WHAT ELSE ON THAT POINT IT SEEMS TO ME THAT THERE IS SOMETHING IN THE NATURE OF A CONFLICT OF INTEREST IF A MEMBER OF COUNCIL IS ON THAT BOARD. BUT THE IDEA APPOINTING A CITIZEN REPRESENTATIVE HAS A LOT OF APPEAL AND AGAIN YOU CAN SEE WHEN IT SEEMS OKAY BEFORE

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YOU THAT SCHOOL BOARD I'M UNDERSTANDING FROM MR. HALBRITTER THAT WE'RE LOOKING FOR AN OPPORTUNITY TO MORE READILY FEEDBACK FROM BOARD. I'M WONDERING IF THE REPORTING REQUIREMENTS WE HAVE INVENTED AT THE MOMENT COULD BE ADJUSTED .

SEND IT. YES, SIR. ABSOLUTELY.

WE COULD REQUIRE REPORTING AS FREQUENTLY AS NECESSARY AND THAT BE DETERMINED BY THE BOARD. SO WHETHER THAT BE BIANNUAL QUARTERLY WHATNOT, WE CAN PICK THAT FREQUENCY AND REQUEST THAT INFORMATION FROM THEM AND WHAT WE NEED TO DO IS AN OUTLINE THAT IN THE MEMORANDUM AS FAR AS OUR EXPECTATIONS I'M NOT QUITE AT THIS POINT BUT RELATED ANNUAL REPORTS WHICH BOOK CAN BE FILED EVERY THREE YEARS THAT'S THE AUDIT YOU HAVE TO GET. I THINK IT'S AN EXTERNAL IS EVERY THREE YEARS THE ANNUAL REPORT SHOULD JUST BE THAT IT SHOULD BE CIVIL SHOULD BE SUBMITTED ANNUALLY.

OH YES. SO IT WILL BE THAT A CPA WILL DO AN ANNUAL REPORT LESS THAN EVERY THIRD YEAR. YEAH SO COUNCIL SHOULD PREPARE AND SUBMIT ANNUAL REPORT TO THE TOWN IDENTIFYING THE MANNER IN WHICH ANY FUNDING IS RECEIVED BY THE TOWNS UTILIZE, THE OUTCOMES THAT IT WAS CREATED TO SUPPORT THE DEVELOPMENT OF WORKFORCE HOUSING AND, ANY PERFORMANCE METRICS THAT MAY BE NECESSARY TO EVALUATE THE OVERALL EFFECTIVENESS THAT THE FUNDING HAS HAD IN ADDRESSING WORKFORCE HOUSING. ALL RIGHT.

THE NEXT QUESTION WAS SHOULD WE CONSIDER QUARTERLY OTHER PERIODICALLY? WELL, WE JUST COVERED THAT ONE SO WE'LL MOVE ON TO THE NEXT TWO AGREEMENTS WITH OTHER AFFILIATED AGENCIES HAVE THE SAME TYPE OF WILL CONSIDER LANGUAGE THE ANSWER TO THAT IS YES AND NO. SO WE KIND OF HAVE A LITTLE BIT OF A GRAB BAG.

SOME OF OUR MEMORANDUM SPECIFICALLY IDENTIFY FUNDING THAT WILL BE PROVIDED.

SO YOU JUST SAW AN EXAMPLE OF THAT USCCB WE HAVE THE MITCHELL BILL FREEDOM PARK GROUP THAT HAS A SPECIFIC DOLLAR AMOUNT THAT'S IDENTIFIED AND SO DOES THE COASTAL DISCOVERY. SO THOSE THREE HAVE IDENTIFIED FUNDING AMOUNTS WITHIN.

THE MEMO ITSELF THE OTHERS STATE THAT FUNDING WILL BE PROVIDED BUT THEY HAVE TO GO THROUGH THE ANNUAL BUDGET PROCESS AND IT IS NOT SPECIFIC TO THE FUNDING AMOUNT IT'S JUST TO BE DETERMINED AS PART OF THAT ANNUAL AFFILIATED REQUEST.

ARE THERE OTHER AGENCIES REQUIRED HAVE A SEPARATE FUNDING THE SAME REPORTING LANGUAGE? YES. THAT LANGUAGE IS CONSISTENT THROUGHOUT. WANT TO BE ABLE TO TRACK OUR DOLLARS EVEN THOUGH MONEY IS FUNGIBLE IT WILL GET ADDED TO OTHER ACCOUNTS. WE NEED TO KNOW HOW IT IS ULTIMATELY UTILIZED AND THAT'S THE INFORMATION THAT COMES BACK TO US THAT SAYS HERE'S THE MONEY WE GAVE YOU, HERE'S THE MONEY THAT WAS SPENT AND HERE'S WHAT IT WAS SPENT ON.

SO IT SHOULD BE SPECIFICALLY IN THAT REGARD. AND THEN THERE'S AN ASK FOR A CONFIRMATION THAT THE LANGUAGE COMPLIES WITH THE REQUIREMENTS SET FORTH IN THE ATTORNEY GENERAL'S OPINION LETTER. YES WE CERTAINLY BELIEVE IT DOES AND THAT LANGUAGE JUST SO AS A REMINDER INCLUDED ON THE ACTUAL AFFILIATED AGENCY APPLICATION DOCUMENTS, I WOULD RECOMMEND THAT AS THIS MATTER MOVES FORWARD THAT FOR BOTH THE COASTAL COMMUNITY DEVELOPMENT CORPORATION AND FOR HABITAT FOR HUMANITY THAT THEY PROVIDE THAT APPLICATION FUNDING.

NOW WE CAN LOOK AT IT AS PART OF AN OUT-OF-CYCLE FUNDING REQUEST FOR THE FY 24 SEASON NOW BUT I THINK IT'S STILL IMPORTANT THAT THEY GET ON THAT SAME PROCESS AS EVERYBODY ELSE'S AND AFFILIATED AGENCY PREPARE THAT PAPERWORK, SUBMIT THAT TO US THAT WAY EVEN THOUGH THE TERMS MAY NOT CHANGE WE AT LEAST HAVE THE DOCUMENTATION OF THAT AND SHOULD ANYBODY QUESTION THE APPROPRIATENESS OF THOSE EXPENDITURES WE CAN POINT TO THAT AND USE THAT AS JUSTIFICATION FOR WHY IT'S CLEARLY DEMONSTRATED AS PUBLIC PURPOSE.

AND THEN THE LAST QUESTION WAS THE CDCC AM I ARRANGED TO BE SPECIFIC AND NOT USING THE UP TO LANGUAGE AGAIN WHAT THOSE FIGURES ULTIMATELY ARE IS A POLICY DECISION FOR THE COMMITTEE IN TERMS OF SETTING A FLOOR AND A CEILING OR A SPECIFIC AMOUNT AND THAT'S ULTIMATELY WITH DIRECTION. WE'LL TAKE THAT AND MAKE SURE THAT THAT'S INCORPORATED INTO THE MEMO YOU ACCORDINGLY OKAY? AND I DID WANT TO MAKE ONE COMMENT ON THE LAST BULLET POINT, MR. GRUBER AND WHEN SEE CDC IS PRESENTING THEY CAN OBVIOUSLY ADDRESS THIS BUT THE THE MODEL REALLY TENDS TO IS A FINANCIAL GAP OBVIOUSLY WHEN COMES TO THE AFFORDABILITY AND THE RENTS PARTICULARLY WHEN YOU START TO GET BELOW 100% AM I RIGHT? SO I THINK FOR THIS PARTICULAR ONE THE CURRENT NYU DOESN'T REALLY ADDRESS IT BECAUSE IT JUST SET UP TOO. I THAT WE'RE GOING TO NEED TO HAVE SOME LANGUAGE IN THERE

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THAT HAS THAT FLOOR AND CEILING AS YOU DESCRIBE. OKAY.

YES SIR. ALL RIGHT. ANY OTHER COMMENTS AND QUESTION? YES, I AGREE WHAT THE CHAIRMAN JUST SAID THAT WE DO NEED TO COME UP WITH THOSE PARAMETERS AND ON A BROADER PURPOSE I THINK COUNCIL SHOULD CONSIDER ESTABLISHING WHAT WE MEAN GENERALLY BY WORKFORCE HOUSING OR, AFFORDABLE HOUSING THOSE PARAMETERS I DID HAVE A COUPLE OF OTHER LITTLE THAT I SHARED EARLIER AND ONE WAS SHOULD WE INCLUDE A PROVISION DEALING WITH THE RENT SHOULD NOT EXCEED THE 30% APPLICABLE INCOME LIMIT AS IS GENERALLY APPLIED? MY UNDERSTANDING IS THAT IS INTO THEIR PROGRAM MODEL BUT I THERE'S CERTAINLY NOTHING WRONG WITH US EXPLICITLY STATING THAT AS A REQUIREMENT I THINK IT SHOULD BE IN THE AGREEMENT. YES AND THERE ARE PROVISIONS IN THERE ABOUT SALE OF UNITS BUT I'M CONCERNED ABOUT A UNIT BEING THAT HAS BEEN FUNDED IN WHOLE OR IN PART BY THE THEN WHAT HAPPENS TO THE MONEY. I WOULD LIKE TO SEE THAT MONEY REINVESTED IN ANOTHER UNIT IN A REASONABLE PERIOD OF TIME NOT TO EXCEED ONE YEAR AFTER THE SALE.

THAT WOULD BE A SUGGESTION THAT I WOULD MAKE. SO WE KNOW THAT THOSE FUNDS ARE CONTINUING TO RECYCLE THROUGH THE PROGRAM ASSUMING THAT MEETS THE AGREEMENTS AND NEEDS OF CC DEASY WOULD WE BE ABLE TO PUT ON THAT ANY KIND OF TIME LIMIT. SO FOR EXAMPLE FOR 21 YEARS FROM NOW AND THE UNIT SELLS THAT SOMETHING THAT WE STILL WANT REPORTED BACK OR DO WE WANT IT FOR FIVE YEARS AFTER WE PROVIDE FUNDING JUST FOR DISCUSSION PURPOSES? I'M OPEN I'M OPEN TO EVALUATING THAT AND MOVING IT FORWARD. THE TOWN IS NOT GOING TO BE AN OWNER OF ANY OF THESE UNITS. IF THERE WAS A CASUALTY IN ONE OF THE UNITS I BELIEVE THAT THE TOWN WOULD CERTAINLY BE INCLUDED IN A LAWSUIT. PEOPLE LOVE TO SUE THE TOWN ABOUT ALMOST ANYTHING AND SO WE NEED TO MAKE SURE THEY'RE ADEQUATE LIMITS.

AND I WOULD LIKE FOR US TO CONSIDER THE COMMUNICATIONS PROVISION FROM CC DC WE CAN CERTAINLY INCLUDE INDEMNIFICATION. THOSE ARE MY COMMENTS.

THANK YOU. LET ME PIGGYBACK JOSH ON THAT LAST COMMENT REGARDING INSURANCE. UM CC DC MAY BE DOING RENOVATIONS AND CONSTRUCTION WORK. DOES THE CURRENT LANGUAGE IN THE MEMO YOU COVER US FOR THAT OF ACTIVITY IT DOES WITH THE LANGUAGE THAT COUNCILMAN STANFORD PROPOSED IT BE INCLUDED WITHIN THE DOCUMENT SO WITH WHAT'S YOUR IN YOUR PACKET HERE IT DOES REQUIRE THEY PROVIDE THAT INSURANCE AND I THINK WE WOULD ADD TO THAT JUST IN GENERAL INDEMNIFICATION CLAUSE THAT BASICALLY SAYS IF THERE IS A LAWSUIT YOU WILL ALL THE EXPENSES WE WON'T HAVE TO HAVE EXPOSURE OR COST IN THAT BECAUSE WE'RE NOT DIRECTLY INVOLVED IN MANAGING THEM.

ALL WE'RE DOING IS PROVIDING THE FUNDING. THAT'S AN UMBRELLA STATEMENT.

THANK YOU. THOSE ARE MY COMMENTS, MR. CHAIRMAN.

MR.. DID YOU HAVE ANY REACTIONS TO MR. SANFORD'S COMMENTS? OH, OKAY. I'LL YOU A BITE OF THE APPLE ALSO TO BRING ANYTHING ELSE YOU HAVE BUT BEFORE WE MOVE FORWARD FROM MR. STAFFORD'S COMMENTS PARTICULARLY ABOUT THE THE UNIONS AS THE TRANSITION THERE IS LANGUAGE IN THE KDKA'S PRESENTATION THAT TALKS ABOUT COVENANTS BUT THAT LANGUAGE IS THAT AND MORE USE. SO I'M WONDERING IF THERE'S A WAY TO GIVE US SOME PROTECTION IN THAT REGARD CORRECT IT'S SPOKEN TO GENERALLY BUT NOT SPECIFICALLY AND WHERE THAT IS IN THERE IT TALKS ABOUT THAT THEY WILL BE RESTRICTED FROM AN AFFORDABILITY. IT COULD GO ON TO FURTHER STATE THE SPECIFIC COVENANTS AND RESTRICTIONS THAT ARE SPOKEN TO IN THE KDKA'S MATERIALS. OKAY.

ALL RIGHT, MR. ALFRED DOING JUST MORE GENERAL COMMENTARY EVERYTHING.

YES, I DO HAVE SEVERAL GENERAL COMMENTS FIRST OF ALL, ANY PART OF TOWN CONTRIBUTION THIS AS I UNDERSTAND IT CAN BE USED GEOGRAPHICALLY ANYWHERE IN A MULTI COUNTY AREA.

NO SPECIFICALLY THIS FUNDING AS PROVIDED FOR IN SECTION THREE A TO I IT SAYS COASTAL MAY ONLY USE THE ABOVE REFERENCE FUNDING FOR THE PURPOSE OF ACQUIRING REAL PROPERTY AND ACQUIRING SINGLE AND OR MULTI-FAMILY WORKFORCE HOUSING UNITS WITHIN MUNICIPAL BOUNDARIES OF THE TOWN OF HILTON HEAD ISLAND I EXTEND THAT A LITTLE BIT IT DOESN'T REQUIRE THE EMPLOYEE WHO IS ABLE TO RENT THIS FACILITY EITHER WORK FOR A TOWN COMPANY IT DOES GO TO THAT

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LEVEL IN TERMS OF QUALIFYING A PERSON TO RENT I THINK THE FOCUS HAS BEEN MORE ON THEIR SALARY REQUIREMENTS IN THE AREA MEDIAN INCOME BUT THERE'S NOTHING AT LEAST AT LEAST NOT IN THE MEMORANDUM OF UNDERSTANDING THERE'S NOTHING SPOKEN TO ABOUT WHERE THE PERSON IS EMPLOYED PERSONALLY I HAVE A PREFERENCE THAT THAT EMPLOYEE BE FOR A BUSINESS LOCATED ON THE ISLAND I WANTED TO GET INTO HOW WE'RE GOING TO PAY FOR THIS A LITTLE BIT ALAMO FUNDS THE IMPACT ON ANY TAXES SO ON AND THE LAST ATTACHMENT ATTACHMENT AID AS A PAGE TO PEOPLE MAKING A LOT OF CALCULATIONS ON THAT DONE IN OFFICE OR IN BY MR. HARRIMAN OR IT WAS DONE BY MR. HARRIMAN BUT I CAN TRY TO KIND OF HOPEFULLY WALK YOU THROUGH THIS DOCUMENT AND ADMITTEDLY THIS DOCUMENT IS A LITTLE CONFUSING AND PART OF THE REASON FOR THAT IS WE HAVE TO COMBINE BUT YET A SEPARATE SCHEDULE RULES THAT ARE INFLUENCING THIS ONE IS THE TOWN'S FISCAL BUDGET WHICH IS JUNE TO JULY AND SO WE APPROPRIATE FUNDS OUT OF THESE TAX FUNDS ON THAT ON THAT ANNUAL FISCAL BASIS BUT WE ALSO THE APPROPRIATE FUNDS FOR A TAX GRANTS ON A CALENDAR YEAR BASIS AND SO PART WHAT YOU SEE HERE IS MONEY THAT'S ON HAND BECAUSE WE'RE HALFWAY THROUGH THE BUDGET YEAR AND PART OF IT IS PROJECTIONS FOR FUTURE COLLECTIONS BECAUSE OF THAT TIMING ISSUE. WHAT I CAN TELL YOU IS BASED UPON THE CURRENT AVAILABLE AMOUNTS THAT WE HAVE ON HAND WHAT WE EXPECT TO RECEIVE TERMS OF COLLECTIONS FOR NEXT FROM JULY WHAT IS ANTICIPATED TAX REVENUES THAT WOULD LEAVE US AND THEN OUT THE TAX GRANTS THAT COUNCIL APPROVED ITS LAST MEETING THAT LEAVES US A CURRENT AVAILABLE BALANCE OF JUST SHY OF $4 MILLION AND AT THE LAST AND NOT THE LAST AFTER A MEETING WITH THE MEETING BEFORE THAT I HAD HIGHLIGHTED THAT A OF THAT COUNCIL HAD IDENTIFIED FOR USE FOR LAND ACQUISITION PURPOSES AND SO $2 BILLION OF THAT $4 MILLION IS ESSENTIALLY GOING TO BE SET ASIDE AND BROUGHT FORWARD AS PART OF A BUDGET AMENDMENT FOR LAND ACQUISITION WHICH REALLY LEAVES US THEN ABOUT A LITTLE LESS THAN $2 MILLION IN TERMS OF THE AVAILABLE BALANCE. IF YOU GO BACK TO OUR INITIAL DISCUSSIONS ABOUT ACT 57, IF YOU'LL RECALL THAT THEY PUT A 15% CAP ON THE IN TERMS OF WHAT CAN BE SPENT FOR WORKFORCE HOUSING, THERE'S TWO WAYS TO GO ABOUT MAKING THAT CALCULATION.

ONE IS ON THE WHOLE AND WE UNDERSTAND FROM THE ATTORNEY GENERAL'S OPINION THAT THAT IS AN ACCEPTABLE HOWEVER OUR RECOMMENDATION HAS BEEN TO USE THE MORE CONSERVATIVE OF APPROACH WHICH IS TO DO 15% OF WHAT IS LEFT IN THE BALANCE OF THE 65% OF STATE ACCOMMODATIONS TAXES WHICH PUTS YOU RIGHT ABOUT $1.2 MILLION. SO THAT'S WHY YOU SEE THAT FIGURE LISTED IN THIS DOCUMENT AS WELL. WHERE IS THAT 1.2 WHEN IT SAYS UNDER POSSIBLE WORKFORCE HOUSING? OH YEAH.

RIGHT NOW OUR INTEREST IS IN RELATIONSHIP THOSE RECIPIENTS OF ANY TAX FUNDS OTHER THAN THE CHAMBER NAMELY THE NONPROFITS. YES, SIR AND I BELIEVE THE FIGURE FOR THE YEAR THAT WE JUST APPROVED LITTLE WHILE AGO WAS SOMEWHAT IN EXCESS OF $4 MILLION.

YES, SIR. THIS FIRST HIGHLIGHTED LINE ON THIS PAGE IT WAS $4,282,328.

SO IF WE'RE THINKING ABOUT THE POSSIBILITY THAT THE ONLY 24 OR WE WANT TO GRANT 4 MILLION OR FOUR AND A QUARTER MILLION OR SOMETHING TO THE NONPROFIT, IS THAT MONEY LIKELY TO AVAILABLE AT THIS POINT? I THINK YES IT WOULD BE BASED UPON WHAT THE TRENDS ARE THAT WE'RE SEEING NOW WE'RE SEEING ANYWHERE IN RANGE OF ABOUT 95 TO 96% OF LAST YEAR'S FROM AN ACCOMMODATIONS TAX FUNDING LEVEL STANDPOINT. SO KNOWING THAT IF WE DO UTILIZE $2 MILLION FOR LAND PURCHASE AND IF WE DO SET ASIDE 1.2 MILLION FOR WORKFORCE HOUSING IT WOULD LEAVE US A CURRENT AVAILABLE BALANCE OF RIGHT AROUND $800,000 WITH THE UNDERSTANDING THAT WE'RE PROBABLY GOING TO COLLECT SOMEWHERE IN THE NEIGHBORHOOD OF ABOUT 6 TO $7 MILLION AS WE GO FORWARD IN THE NEXT YEAR IS THE LINE 1.2 FOR POSSIBLE WORKFORCE HOUSING AND FIGURE HAS A STRONG RESEMBLANCE TO SOME REQUESTS WE'VE JUST

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RECEIVED WELL IT'S ACTUALLY BASED UPON THE 15% CAP MORE THAN IT IS ANY REQUEST THAT YOU'VE RECEIVED THAT IS THE AMOUNT THAT COULD BE SET ASIDE NOT THE AMOUNT THAT SHOULD BE SET ASIDE IF WE'VE FUNDED THE HABITAT FOR HUMANITY AND REQUESTED AMOUNTS WHICH IS HYPOTHETICAL WHAT DOES THAT LEAVE? I THE CDCR REQUEST IS FOR $600,000 AND I BELIEVE HABITAT'S INITIAL REQUEST WAS FOR $500,000.

THAT WOULD BE 1.1 OF THE 1.2 MILLION THAT'S AVAILABLE AND THAT IN FACT AN EARNINGS AND NON PROFIT AT THIS POINT WE DON'T BELIEVE IT WOULD HAVE AN EFFECT ON THEM.

THANK YOU VERY MUCH AND THANK YOU MR. ALFRED BUT IT'S GOOD THE SCREW UP WAITED UNTIL OUR AND I THINK WE'RE GOOD THANK YOU BOTH WELCOME SIR. CONSTABLE THANKS FOR HAVING ME, WOLF. I'M REPRESENTING THE COASTAL COMMUNITY DEVELOPMENT CORPORATION CAME IN FRONT OF THE GROUP BACK MAY WITH A REQUEST TO TOWN COUNCIL FOR A $600,000 GRANT. I BELIEVE THE YEAR IS ALMOST OVER IS THE 12TH MONTH SO WE'RE HAPPY TO BE HERE TODAY TO FOLLOW UP AND ANSWER ANY QUESTIONS YOU HAVE.

I DIDN'T PREPARE THE PRESENTATION BECAUSE I PRESENTED ON THREE OCCASIONS TO THE GROUP BUT. I AM ANXIOUS TO ANSWER ANY QUESTIONS YOU HAVE.

I WOULD LIKE TO JUST GIVE A BRIEF UPDATE. YOU KNOW THAT WE HAVE ALREADY PURCHASED THREE UNITS. WE ARE SET TO CLOSE OUR NEXT TWO UNITS BY THE END OF THIS MONTH ON DECEMBER 28TH ONE OF WHICH IS ON THE SOUTH END OF THE ISLAND AND.

IT IS CURRENTLY LISTED ON THE AIRBNB MARKET SO ANY TIME WE CAN GET VACANT UNIT AND A SHORT TERM RENTAL UNIT WE ARE IT'S A DOUBLE WIN FOR THE COMMUNITY IN OUR EYES SO WE'RE HAPPY TO BE ON THE PRODUCT ON THE FOREFRONT OF GETTING TO FIVE UNITS AND IF WE GET THIS GRANT APPROVED IN THE NEXT TWO OR THREE MONTHS WE FEEL LIKE WE WOULD BE AT 16 UNITS.

SO OUR FIRST REPORT BACK FOR OUR EMPLOYEES WOULD BE A VERY POSITIVE ONE.

IT COULD BE DONE VERY QUICKLY PROBABLY IN 90 DAYS WE CAN COME BACK AND SHOW YOU THE PROOF AND IF WE KEEP WORKING LAST WEEK BE FOR COUNTY COUNCIL MADE A POSITIVE STEP IN SUPPORTING A 16,000 BLOCK GRANT REQUEST THAT WOULD BE USED UNINCORPORATED COUNTY AS OPPOSED TO HERE WHICH WOULD BE OF COURSE JUST ON NOTE AS MR. GRUBER POINTED OUT. SO IT COULD STAY UP THERE.

AND THEN LASTLY, THANKS TO THE EFFORTS OF OF A NUMBER OF COUNCILMEMBERS THE MAYOR THE SOUTH CAROLINA HOUSING APPLICATION FOR SUPPORTIVE HOUSING PROGRAM IS BEING FILED.

IT SHOULD BE IN IN THE NEXT 30 DAYS. WE'RE WORKING WITH A GROUP OUT OF CHARLESTON WHO IS HELPING US FILL OUT OUR FIRST APPLICATION THAT WOULD BE FOR 12 UNITS WHICH HAVE TO SATISFY THE 50% AMI LEVEL. SO THAT IS A HUGE OPPORTUNITY FOR US AND SENATOR DAVIS HAS BEEN HUGE PROPONENT OF OPENING THAT DOOR AND WE FEEL LIKE WE CAN BE THE FIRST SUCCESSFUL USE OF THAT PROGRAM HERE IN THE LOWCOUNTRY AND THAT'S JUST A STARTING POINT. BUT I SEE HOUSING AS THEY HAVE A LOT OF FUNDS AVAILABLE FOR HOUSING SO THAT'S JUST A QUICK UPDATE ON WHERE WE STAND. I'M HAPPY TO ANSWER ANY QUESTIONS OR I'LL TRY ANYTHING YOU ALWAYS THANK YOU SIR. BUT WITH YOU THIS TIME IT SEEMS AND THANKS FOR YOUR WORK. YES SIR. WE'VE WE'VE ANSWERED ONE QUESTION ACQUIRING RESIDENTIAL UNITS ON ELM THAT IS IN THE M.O. THAT'S GOOD.

THERE IS SOMETHING IN THE AMA WITH YOU THAT REFERS TO LAND ACQUISITION AND ALSO ACQUIRING REAL PROPERTY. AM I CONFUSING THE EXPECTATION AND INTENT OF THE CDC ARE YOU GOING TO BE GOING INTO DEVELOPMENT? THAT'S NOT THE INTENT WITH ANY OF THESE FUNDS THIS IS TO DEPLOY STRICTLY FOR EXISTING HOUSING ORDER THAT'S IN THE MARKET. I THINK THE M.O. OUGHT TO REFLECT THAT THE DISTRIBUTIONS OF MY LEVELS WE'VE TOUCHED ON THAT ALREADY. I THINK THAT NEEDS TO BE UNDERSTOOD IN THE MEMO YOU IS IT'S STILL THE INTENT OF THE CDC TO HAVE A 99 YEAR DEED RESTRICTION. YES, I HAVE A COPY OF THE DRAFT COVENANTS FOR A BOARD MEETING COMING UP AFTER THIS DRAFT BY FOREMAN AND APPROVED AT THE BOARD LEVEL WE WILL PLACE THOSE IN PLACE ON THE EXISTING UNITS THAT WE ALREADY OWN. THANK YOU.

WE TALKED ON THE INSURANCE ISSUE TIME AND TIMING OF PAYMENTS.

I WOULD BE MOST COMFORTABLE WITH THE DRAW DOWN WHEN YOU HAVE AN ASSET THAT YOU'VE PURCHASED YOU COME TO THE TOWN AND. COULD I SPEAK TO THAT FOR A MOMENT PLEASE? YOU KNOW, WE HAVE WORKED WITH A LOCAL GROUP WHO REPRESENTS A FEW DOCTORS ONE IN NEW YORK, ONE IN ATLANTA. I THINK I MENTIONED IT IN THIS FORMAT BEFORE THEY OWN 46 UNITS ACROSS THE AREA. THEY WERE INTERESTED SELLING ALL OF THEM IN DIFFERENT MARKETING BLOCS AND WE'VE BEEN NEGOTIATING WITH THEM FOR AS

[01:30:02]

LONG AS WE'VE BEEN STANDING HERE IN FRONT OF THE TOWN HALL LOOKING FOR THIS GRANT.

SO THE MOMENT THAT THIS GRANT WOULD BE APPROVED WE WOULD BE READY TO CLOSE ON UNITS FROM THAT DOCTOR GROUP HERE ON HILTON HEAD ISLAND WHICH WOULD KEEP THEM GOING TO THE SHORT TERM MARKET AND I WOULD BE ABSOLUTELY IN SUPPORT OF A DRAWDOWN IN ANY OTHER CIRCUMSTANCE OR IN ANY FUTURE ALLOCATION IN A SENSE THAT WOULD BE A DRAW DOWN FOR ALL NINE. YOU JUST WILL HAPPEN RENTAL PREFERENCES.

THERE'S NOTHING IN THE MEMO THAT REALLY SPEAKS TO THAT WHEREAS IN OF YOUR DOCUMENTATION IT SUGGESTS THAT IT WOULD THE PRIORITY WOULD BE FOR AFFILIATED PARTNERS.

I'M UNCOMFORTABLE WITH THAT AND CHARGE I WOULD LIKE SOMETHING IN THE MEMO THAT SAYS WITHOUT PREFERENTIAL TREATMENT TO BASED ON THEIR SPECIFIC EMPLOYEE EMPLOYER I THINK A GENERAL STATEMENT WOULD BE THAT THIS CONSIDERATION IS CONSISTENT WITH PRIOR VOTES OF COUNSEL.

I THINK IT'S OUR RESPONSIBILITY IS HERE TODAY TO MAKE THIS DECISION TO MOVE FORWARD AND I WOULD SPEAK TO THAT THAT'S BEEN ON MY MIND ACTUALLY AS WELL TO THE EXTENT AN EMPLOYER WERE TO COME TO THE TABLE WITH 40% DOWN PAYMENT CAPITAL THAT WOULD QUALIFY THEM AN AFFILIATE SPONSOR NO ONE HAS TO DATE BUT HAVING ANY MUNICIPAL FUNDS INVOLVED WOULD PRECLUDE US FROM HAVING A PREFERENCE FOR AN EMPLOYER BASED ON THAT AS THE MONEY IS FROM THE TOWN FROM THE TAXPAYERS SO THAT WOULD MAKE SENSE. ON THE PREFERENCE SIDE OFFER PREFERENCE ARE DOCUMENTED IN OUR BYLAWS THEY'RE DOCUMENTED ON OUR WEBSITE CAN INCLUDE THEM IN THE MEMORANDUM BUT IT WOULD ANSWER COUNCILMAN ALFRED'S COMMENT THAT THERE'S A LOCAL WORKER PREFERENCE SO YOU KNOW THE FIRST ONE WOULD BE FOR SOMEBODY WHOSE HAS A JOB ON HILTON AND SO THE MOMENT WE HAVE ALL THOSE JOBS FILLED BY PEOPLE LIVING HERE WE WOULDN'T HAVE THAT PREFERENCE IT WOULD IT WOULD THEN PUSH FOR THEM THOSE ARE MY QUESTIONS.

OKAY. THANK YOU AND THANK FOR YOUR HARD WORK ON THIS WHAT YOUR WHOLE TEAM HAS BEEN WORKING DILIGENTLY TRYING TO MEET SOME OF THE QUESTIONS THAT WE'VE RAISED AND WE APPRECIATE THAT. I RAISED A COUPLE OF SPECIFIC ITEMS DO YOU HAVE ANY PROBLEM WITH LIMITING THE 30% DISPOSABLE INCOME LIMIT FOR RENTS? NO. IN FACT I'VE WORKED WITH TOWN STAFF.

WE HAVE A GRID THAT ALREADY INCORPORATES THOSE RENTAL RATES BY UNIT SIZE AND BY AMI.

SO THAT'S ABSOLUTELY THE GENERALLY ACCEPTED PRACTICE AND WE WOULD BE IN SUPPORT OF THAT BECAUSE THAT'S HOW WE'RE I'D LIKE TO SEE THAT IN AS A LIMITATION AS A MAX I WOULD SAY BECAUSE AGAIN AS A MAX AND ALSO SOME SORT OF PROVISION DEALING WITH REINVESTMENT OF THE PROCEEDS OF SALE OF A UNIT AND OTHER UNITS IN A REASONABLE PERIOD OF TIME IS THAT ACCEPTABLE AS WELL? ABSOLUTELY. WE HOPE THAT PEOPLE EARN AND CAN PURCHASE THESE UNITS AND THE REUSE OF THOSE FUNDS WOULD BE A WIN FOR EVERYONE INCLUDING THE PERSON WHO PURCHASED THE UNIT? THANK YOU? THOSE ARE MY COMMENTS. THANK YOU, GOVERNMENT. OKAY.

UM, SO THINGS WITH THE WE TALKED A LITTLE BIT ABOUT THE MEMORANDUM OF UNDERSTANDING HAVING THAT UP TO 20% PMI LANGUAGE AND YOU OBVIOUSLY HAVE A RATIO OF AIM THAT YOU'RE TRYING TO ACCOMPLISH SO THAT YOU CAN GET OTHER BENEFITS RIGHT.

SO INCORPORATE INTO THIS AGREEMENT SO YOU ARE OKAY WITH THAT? WELL. WELL, I WOULD SAY THAT EACH ONE OF THOSE RESTRICTIONS AT THE STATE LEVEL AND THE IRS FOR THE FEDERAL SAFE HARBOR ARE UP TO 50% AMI UP TO 80% AND UP TO 1/20. SO THERE'S UP TO LANGUAGE THE IDEA BEING THE LOWER THE BETTER. SO I WOULD I'M NOT OPPOSED TO LEAVING IT IS UP TO THE MAX WOULD DEFINITELY BE 120 AND I DON'T UNDERSTAND THE NECESSITY FOR FLOOR PERSONALLY BECAUSE IT WOULD JUST MEAN IT'S A MORE AFFORDABLE UNIT SO OPEN TO THAT DIALOG I DON'T THINK IT'S NECESSARY. I THINK UP TO 120% CAPTURES EVERYONE'S HANDS IN BOTH CASES PERSONALLY I THINK THAT THE FLOOR IS IMPORTANT FOR US AS WE'RE MOVING FORWARD AS FAR AS HAVING DISCUSSIONS ABOUT OUR FINANCIAL RESPONSIBILITY AND I COULD SEE 0% COUNCILMAN IT BECAUSE YOU KNOW THAT JUST MAKES A AFFORDABLE FOR SOMEONE WITH A LOWER HOUSEHOLD INCOME SO THE LOWER THE BETTER FOR SURE. ALL RIGHT.

AND THIS IS UNRELATED TO THE IMO YOU BUT MENTIONED IT THAT THE POTENTIAL OF PULLING DOWN THOSE SELF-CLEANING HOUSING FORMS. YES.

DO YOU HAVE ANY IDEA AS TO HOW MUCH YOU'RE GOING TO BE REQUESTING FROM THE SOUTH CAROLINA HOUSING THE SUPPORTIVE HOUSING PROGRAM WOULD PROVIDE UP TO $300,000 PER UNIT FOR 12

[01:35:01]

UNITS AS LONG AS THEY ALL SERVE 50% AMI ■AND YOU HAVETOOFFER SUPPORTIVE HOUSING SERVICES OF THREE UNIQUE VARIETIES SUCH AS MENTAL HEALTH AWARENESS, FINANCIAL LITERACY TRAINING ETC. AND WE WOULD ONLY BE ABLE TO PROVIDE ONE OF THOSE AND HOUSE WOULD HAVE TO OUTSOURCE THE OTHER TWO SO YOU KNOW IT'S ALREADY PRESCRIBED IT'S 12 UNITS UP TO 300,000 WHICH OF COURSE IS MORE THAN YOU NEED TO BUY UNITS ON THAT ISLAND. SO WE WE'RE VERY EXCITED ABOUT THAT. ALL RIGHT. THANK YOU.

OKAY. YOU'RE GOING TO APPEAL. ALL RIGHT.

WE WILL. I WOULD JUST MENTION YOU WANT TO CALL ME BACK UP TO CLARIFY ANYTHING THAT COMES UP IN THE NEXT 2 HOURS, PLEASE LET ME KNOW.

THANK YOU, SIR. WE WILL NOW OPEN THE FLOOR TO PUBLIC COMMENT ON THIS PARTICULAR ITEM. YES. GOOD AFTERNOON, COMMITTEE MEMBERS. MY NAME IS MATT SWEENEY AND I LIVE IN INDIGO RUN.

MY COMMENTS ARE GOING TO START WITH A STORY ABOUT TOILET PAPER.

IMAGINE A TIME WHEN TOILET PAPER SCARCE AND THERE'S A #100 HOUSE PAINTER WHO FINALLY MANAGED TO FIND A ROAD HIGH ON A SHELF WHILE HE'S TRYING TO FIGURE OUT WHETHER HE CAN REACH OR AFFORD IT. A #200 CLEMSON WIDE RECEIVER STANDS BEHIND HIM ALSO SHOPPING FOR TOILET PAPER. NOW IMAGINE THAT THIS TIGER SPENDS EVERY DAY BUYING TOILET PAPER FOR. PEOPLE HE DECIDES NEED IT. HE HAS A GUY WHO TELLS HIM WHAT STORES HAVE A TRAINER TO KEEP HIM FAST, A COACH TO ADVISE HIM HELP FROM STAFF A COUPON FOR 20% OFF EVERY ROLL AND ACCESS TO EXPRESS CHECKOUT. ODDS ARE 40 TO 1 THAT THE FOOTBALL PLAYER ENDS UP WITH THE TOILET PAPER AND THE HOUSE PAINTER DOESN'T TOWN COUNCIL COMMITTEES TALK ABOUT HOUSING SUBSIDIES LIKE GRANTS TO NONPROFITS AS SOMETHING FOR THE GREATER GOOD. A DEFACTO SOLUTION TO PERCEIVED SHORTAGES OF SERVICE WORKERS.

IT'S LIKE FUNDING AND SUPPORTING A FOOTBALL PLAYER. END OF DISCUSSION.

BUT THERE ARE ALWAYS COSTS TOO AND THEREFORE VICTIMS OF ANY GOVERNMENT ACTION TO DATE NOBODY HAS TOLD US WHY THE BENEFITS YOU'RE AIMING FOR ARE IMPORTANT THAN THE BENEFITS OTHER PEOPLE MUST DO WITHOUT. I ASK THAT YOU AND THE ENTIRE TOWN COUNCIL RESPECT THE CITIZENS BY PROVIDING PUBLIC EXPLANATIONS FOR ACTIONS THAT PEOPLE CAN UNDERSTAND WITH BOTH THE CC, DC AND HABITAT FUNDING REQUESTS THE GREATER GOOD IS DEFINED BY SPECIAL INTEREST GROUPS AND THERE IS NO DISCUSSION ABOUT WHO WILL BE HARMED UNDER THE PRINCIPLE PROPORTIONALITY INTEREST SHOULD BE BALANCED SUCH THAT IF A POLICY UNDERMINES THE INTERESTS OF ONE PARTY IT SHOULD ALSO IT SHOULD DO SO ONLY AS FAR AS NECESSARY AND MUST GENERATE A PROPORTIONATE SOCIAL GAIN. NOBODY HAS DEFINED OR ENUMERATED THE SOCIAL GAINS YOU'RE AIMING FOR AND NOBODY HAS BALANCED THE INTEREST OF THOSE WHO WILL BE HARMED.

I WAS VERY HAPPY EARLIER TO HEAR YOU TALKING ABOUT METRICS MEASURING PERFORMANCE.

SO TO MR. SANFORD'S COMMENTS EARLIER WE WOULD LIKE TO KNOW THE METRICS ABOUT HOW SOCIETY AS A WHOLE BENEFITS FROM THE PROPOSED TOWN SUBSIDIES AND METRICS ABOUT THE LOSERS.

THE #100 PAINTER COULD HAVE PURCHASED THAT ROLL OF TOILET IF HE WEREN'T SHOVED ASIDE BY THE TOWN'S FOOTBALL PLAYER OTHERWISE KNOWN AS AN AFFILIATED AGENCY.

THANK YOU. THANK YOU. I WOULD.

I ASK IN THE INTEREST OF TIME BECAUSE WE STILL HAVE ONE MORE AGENDA ITEM TO GET TO TODAY.

IF YOU IN AGREEANCE WITH SOMETHING THAT HAS BEEN SAID AND IT IS YOUR TIME TO SPEAK JUST SAY THAT YOU AGREE AND LET'S HOLD OFF ON THE BECAUSE EVERY TIME WE APPLAUD IT TAKES ANOTHER 30 SECONDS AS WE MOVE FORWARD. SO I JUST APPRECIATE YOUR COOPERATION IN THAT MATTER. THANK YOU. COUNCILMAN, WE APPRECIATE DILIGENCE ON THE SPECIFIC TERMS OF THEM OF YOU BUT. YOU ARE NOT ADDRESSING THE VIABILITY OF THE D.C. THAT WOULD BENEFIT LOW WAGE EARNERS .

UNLIKE THE OFFICE WE PROJECT CC D.C. PROPOSAL WE REDUCE INVENTORIES OF $200,000 HOMES THAT WORKING FAMILIES CAN BUY ON THEIR OWN REQUIRING ONGOING GOVERNMENT FUNDING AND AFFILIATE PARTNERS. CURRENTLY SEARCH GROUP AND THE COMMUNITY FOUNDATION OF LOW COUNTRIES COUNCILMAN DAVIS'S AIMS POINT OUT FIRST PRIORITIES FOR THEIR RENT CONTROL UNITS.

IT'S WORTH NOTING THAT CC DC NOT ONLY SELLS QUALIFICATIONS UP TO 150% OF EMI THAT'S IN THEIR PRESENTATION. THAT'S EQUIVALENT TO $170,000 BUT ALSO WITH NO ASSET LIMITS.

[01:40:03]

DOES THAT MEAN SOMEONE LIKE WARREN BUFFET WHO TAKES NO HOME WILL BE ELIGIBLE TO BENEFIT FROM GOVERNMENT SUBSIDIZED HOUSING? I'M FURTHER BAFFLED BY CCD CAPITAL STRUCTURE TO THE COST CURVE. THE MOST EXPENSIVE CAPITAL IS EQUITY THE FEDERAL HOUSING ADMINISTRATION PROVIDES MORTGAGES UP TO A 97% OF HOME VALUE. THAT'S HOW YOU BEND THE CURVE. CC THIS MODEL ASSUMES 40% EQUITY OR ARE $80,000 DOWN PAYMENT FOR $200,000 HOME WHICH FEW WAGE EARNERS AFFORD.

I RECOGNIZE THAT SEASON DC HAS BEEN ACTUALLY CHARITABLE INVESTMENTS FROM INDIVIDUALS.

HOWEVER THESE INVESTORS WILL GET TAX CREDITS AND RECEIVE A RETURN OFF AND A 3% RETURN ON THEIR INVESTMENTS IN TEN YEARS LEAVING TAXPAYERS TO FUND THEIR ALTRUISTIC ENDEAVORS.

THE 99 YEAR AFFORDABILITY MODEL THAT'S OFTEN TOUTED BY COUNCIL MEMBERS MAY PROVE TO BE THE MOST PROBLEMATIC EXECUTION IN 2007. THE TOWN APPEALED AFFORDABLE HOUSING PROGRAM PRIMARILY BECAUSE THE 30 YEAR AFFORDABILITY TERM WAS TOO LONG AND QUALIFIED BUYERS HAVE DIFFICULTY EITHER SECURING FINANCING OR PAYING A HIGH PAYMENT. THE MESSAGE IS VERY SIMPLE MORTGAGES ARE BASED ON THE HOME VALUE OR THE FUTURE CASH FLOWS FROM RENT WHICH WON'T THEORETICALLY KEPT LOW BY CC DC CC DC PROPERTIES AND HAVE ALREADY 40 PLUS YEARS OLD. AND WON'T BE THERE FOR ANOTHER 99 YEARS. WHO WILL THE WORKING FAMILIES. A SOUNDS LIKE A FUTURE CHIMNEY COFFEE VET GIVEN THAT THE CDC 99 YEAR MODEL IS NOT ECONOMICALLY VIABLE FOR WORKING FAMILIES THAT THE SPENDING STRUCTURE LEAVES TAXPAYERS AT THE BOTTOM OF THE CAPITAL STRUCTURE. THAT THE AMA VIOLATES THE FRAMEWORK ESTABLISHED BY THE COUNCIL AND WHATEVER IN THE FUTURE AS THE COUNCIL ALREADY ARE INFORMED THAT YOU WOULD HAVE NO SAY OVER SITE. WE URGE YOU TO VOTE NO TO THE MORE YOU.

THANK. THANK YOU FOR STOPPING. YOU HAVE COMMENT.

OKAY. THANK YOU. ANYONE ELSE I LET GO LAST? ABSOLUTELY YES MA'AM. I'M SORRY I WAS CALLING ON ELSE BESIDES YOU, BUT THAT'S OKAY.

YOU JUST GAVE ME AN IDEA. IF YOU ARE WANTING TO SPEAK, PLEASE LET THEM COME UP.

PLEASE. THANK YOU. DEAR COUNCILMAN.

FIRST LET'S CALL THIS WHAT? THE CDS MODEL YOURSELF. PLEASE WRITE TO IDENTIFY YOUR.

MY NAME MEGHAN FITZPATRICK. I LIVE AT 24 ASHLAND COVE IN THE COMFORT AREA.

THANK YOU. FIRST AGAIN FIRST LET'S CALL THIS WHAT THE CCD CCD MODEL TRULY IS. LOW INCOME HOUSING NOT AFFORDABLE.

JUST BECAUSE POLLING OPTICS SHOW THE TERM LOW INCOME AS IN POPULAR IT DOESN'T NEGATE TRUTH . SECOND, WHY ARE WE IN THIS MESS? BECAUSE OF MANY FAILED FEDERAL POLICIES THAT HAVE CRIPPLED THIS COUNTRY.

WITH COVID SHUTDOWNS SKYROCKETING INFLATION OUT OF CONTROL, MORTGAGE RATES AND A BUILT AND A DEBILITATING COST OF LIVING. THIRD, WHAT'S THE RUSH? THE TOWN COUNCIL RAKED THE OFFICE WE PROJECT OVER THE COALS FOR YEARS.

A GREAT PROJECT THAT COST TAXPAYERS ABSOLUTELY NOTHING. BUT HERE WE ARE PUSHING THIS UNPROVEN PROJECT ALONG USING TAXPAYER DOLLARS. PLEASE PUMP THE BRAKES.

FOURTH, IF IS SUCH A GREAT PROJECT BUT NECESSITATES THIS RUSH JOB THEN WHAT THE PRIVATE SECTOR FUNDED LET THOSE NON-PROFITS AND BUSINESS FUND IT.

IF THEY ARE THEY ARE THE ONES WITH SKIN IN THE GAME. MY SKIN IN THE GAME IS PRESERVING MY PROPERTY VALUE AND MY NEIGHBORHOOD AND I DON'T ASK THE TOWN FOR THEIR HELP SO PLEASE DON'T ASK FOR MINE. I LIVE IN ONE OF THOSE WORKING CLASS NEIGHBORHOODS THAT ARE THE PRIME TARGETS FOR CCD LOW INCOME HOUSING EFFORT. I FLED A STATE THAT FORCED TAXPAYERS TO FUND THE FEEL GOOD PROJECTS AND I SPENT A TREMENDOUS AMOUNT OF MONEY ON MY HOME HERE. NOW YOU ARE GOING TO ALLOW A NONPROFIT WITH TAXES I PAID TO CONVERT HOMES THAT COULD BE VIABLE TO WORKING FAMILIES AND PERMANENTLY DEPRESSED MY HOME VALUE WITH 99 YEAR DEED RESTRICTIONS IN MY NEIGHBORHOOD .

LASTLY THE GOVERNMENT SHOULD NOT BE IN THE LANDLORD BUSINESS.

LEAVE THAT TO THE PRIVATE SECTOR ESPECIALLY WITH A GROUP THAT JUST RECENTLY WITH LAYER UPON LAYER OF NONPROFIT ENTITIES WHERE ALTRUISTIC PRIVATE INVESTORS INVESTORS RECEIVE PRINCIPAL REPAYMENT WITH A 3% ROI. IF IT'S SUCH A GREAT PROJECT THEN THEY DON'T GET TO USE MY MONEY AND FINANCIALLY BENEFIT FROM IT WHILE I POTENTIALLY WILL BE NEGATIVELY IMPACTED PLEASE PUMP THE BRAKES AND VOTE NO THANK YOU.

[01:45:05]

NEXT PLEASE HELLO. THANK YOU FOR ALLOWING ME TO SPEAK.

MY NAME IS SHERRY MIGRANTE AND I LIVE IN INDIGO RUN. THIS IS JUST IN MY OPINION AND TO ME THIS WHOLE DC PROJECT APPEARS TO ME TO LOOK LIKE MORE LIKE A PONZI THAN INVESTMENT.

AND THE REASON I'M SAYING THAT IS THAT THE CDC WILL TAKE X OF DOLLARS.

YOU KNOW, THEY THEY DO PUBLISH NON ONLINE AND YOU CAN SEE A GOOD NONPROFIT ONLY TAKES 10%.

SO WE'LL SAY THIS THAT THE CDC WILL TAKE THE MINIMUM OF 10%. PERSONALLY I DON'T BELIEVE THAT. SO THAT $600,000 WOULD TAKE IT DOWN TO 594,000.

YOUR PARENT COMPANY WHICH IS THE AJ HRA THERE WAS NO DATA YET ONLINE FOR THEM SO I DON'T KNOW HOW MUCH DID THEY DO TAKE OUT. WHAT SAY THEY TAKE ONLY 10% THAT TAKES YOU DOWN TO THAT SAME AMOUNT OF MONEY DOWN TO $587,000.

THEN IT GOES UP TO THE TO THE PJ A PARENT COMPANY AND THIS IS ALL ONLINE AT THE CW AND THEY TAKE A LARGE AMOUNT OF MONEY, PAY THEIR SALARIES, THEIR CEO MAKES $148,000.

I WISH DID AND OTHERS IN THERE MAKE $50,000. IT WAS ONLY TWO PEOPLE WHO MADE SALARIES. LET'S NOT TALK ABOUT THE EXPENSES.

SO BUT THAT WOULD TAKE IT THAT WAS 53% OF WHAT THEIR INCOME IS 53% OF A CHARITABLE NONPROFIT IT THAT TAKES IT DOWN TO $272 FROM THE $600,000. I'M SORRY THERE'S TOO MANY LAYERS. THAT'S GOING TO MAKE MONEY OFF OF OUR INITIAL $600,000.

HOME OWNERSHIP IS THE BEST WAY TO GO. THEY HAVE SHOWN IF WE LOOKED AT A SITE WHERE THEY HAVE WHAT CC DC OWNS PROPERTY ON MARSHLAND DEVELOPMENT.

IF YOU OWNED THAT PROPERTY YOUR MORTGAGE, YOUR TAXES, YOUR INSURANCE, YOURS EVERYTHING WOULD BE LESS THAN WHAT THE CC DC IS CHARGING. THAT IS ONLINE ALSO YOU CAN LOOK IT UP. WE NEED TO LOOK AT THE REALLY ROOT CAUSE OF WHY WE DON'T HAVE HOUSING FOR WORKFORCE AND IT'S MAINLY BECAUSE WE DON'T HAVE ANY MORE LONG TERM RENTALS ON HILTON HEAD. THEY TOOK THEM ALL AND TURNED THEM INTO SHORT TERM RENTALS.

WE NEED TO LOOK AT HOW WE CAN REVERSE THAT. A GOOD ONE ONE WAY WAS IF YOU ARE LUCKY IF YOU RENT LONG TERM YOU PAY LESS IN YOUR TAXES. SHORT TERM RENTAL YOU HAVE TO PAY MORE. YOU NEED TO LOOK AT A WAY TO GET OUR ISLAND BACK INTO DOING LONG TERM RENTALS BECAUSE OTHER ORGANIZATIONS AS YOU SEE IT PINES RESORT AND HELP THAT HELP THEY GIVE HIMSELF BACK MONEY WITHOUT USING TAXPAYER MONEY. THANK YOU FOR ALLOWING ME TO SPEAK. THANK GUZMAN. THANK YOU FOR YOUR TIME.

MY NAME IS MATT STARK. I'M IN FULL SUPPORT OF THE TOWN ENTERING IT AND WITH HABITAT AND CD3 AND IMMEDIATELY GRABBING THE $600,000 REQUEST FROM CCD AND THE 500,000 FROM HABITAT TO PROVIDE WORKFORCE HOUSING COUNSELING. I BECOME A LANDLORD TO ACHIEVE THE WORKFORCE HOUSING STRATEGIC PLAN GOALS. THIS IS WHY THE NORTH FORK DEVELOPMENT GROUP STRATEGY PART WAS DG PARTNERSHIP WITH THE DEVELOPER.

THAT APPROACH DOES NOT PROVIDE SHORT AND MEDIUM TERM SOLUTIONS FOR OUR HOUSING PROBLEM WITHOUT THAT ENERGY CDC PROPOSALS ALLOW THE TOWN IMMEDIATE RESPONSE MINIMAL RISK.

WE GET TO SAFEGUARD OUR HEALTH, HIT OUR WORKFORCE HOUSING IS PLANNING TO PURCHASE EXISTING APARTMENTS AND LEASE THEM TO HILTON HEAD WORKERS. THE ONLY WAY TO PROVIDE HOMES WITHOUT ANY DELAY EXCEEDS HIS MODEL THE ONLY IMMEDIATE SOLUTION FOR WORKERS BEING DISPLACED. IT ALSO PROVIDES OPTIONS FOR ADDING NEW WORKERS.

THIS IS NOT REQUIRE ANY DEVELOPMENT NO NEW ROADS, SEWER CONNECTIONS AND BUILDING PLANS.

NOR PERMITS. THE SAME GOES FOR HABITAT AS WELL PROVEN SHORT TERM PATH TO HOMEOWNERSHIP. I'M INTERESTED IN A SHORT TERM DISPLACEMENT PLAN INSTEAD OF READING PREPAREDNESS STUFF. I'VE DONE MY RESEARCH. I THINK THERE'S A HUMAN ELEMENT THAT'S GETTING MISSED IN A LOT OF THESE DISCUSSIONS. SO IN THIS TALK MYSELF MY PERSONAL LEVEL HERE AND MAYBE GOING TO A MORE MACRO. I'VE BEEN AT ISLANDER FOR 15 YEARS. I WORK IN THE HOSPITALITY INDUSTRY.

I'M A BARTENDER. I'M A JOURNALIST. I'M AN ACTIVIST.

I WORK WITH SEVERAL COMMUNITY ORGANIZATIONS AND ORGANIZED AND HOSTED CHARITY EVENTS THAT HAVE

[01:50:01]

RAISED HUNDREDS OF THOUSANDS OF DOLLARS FOR ISLANDERS MOSTLY CHILDREN.

I'M AN ENTERTAINER. I SPEND A LOT OF THE MONTH OF DECEMBER EVERY YEAR PORTRAYING SANTA CLAUS AT EVENTS WHERE I SEE A LOT OF PEOPLE THAT ARE IN THIS ROOM RIGHT NOW. I DON'T CONSIDER MYSELF AN UNDESIRABLE OR LOW INCOME HOUSING CANDIDATE YET IN THE LAST THREE YEARS I'VE FOUND MYSELF BY DEFINITION OF THE TERM HOMELESS WITHOUT BEING ABLE TO FIND LONG TERM RENTING. I'M MORE FINANCIALLY SUCCESSFUL HERE THAN I'VE EVER BEEN IN MY ENTIRE LIFE OR CAREER AND NUMBERS ARE NOT SOMETHING I'M GOING TO SPECIFY BUT IT SHOULD BE ENOUGH FOR ME TO FIND TERM RENTING HOUSING ON THIS ISLAND . WE'RE NOT TALKING ABOUT JUST UNDESIRABLES HERE.

WE'RE NOT TALKING ABOUT LOW INCOME HOUSING. I THINK IT'S A FEAR TACTIC AND I DON'T THINK IT'S AN ACCURATE PORTRAYAL OF THE KIND OF PEOPLE THAT ARE LOOKING FOR HOUSING HERE. WE'RE LOOKING AT A MENTAL CRISIS AMONG PEOPLE THAT WANT TO STAY ON THIS ISLAND AND LOVE THIS COMMUNITY. THEY'RE STARTING TO NOT LOVE IT ANYMORE. THAT COULD CONTRIBUTE VERY MUCH AND SPEND MOST OF THEIR TIME IN FEAR OF THEIR LONG TERM RENTAL BEING SOLD THEN BEING GIVEN A 3060 DAY NOTICE.

PEOPLE ARE BEING DISPLACED CONSTANTLY SLEEPING ON COUCHES, FINDING BEDROOMS AND STAYING SURE THAT THEY HAVE A HOME. TECHNICALLY AS I DID FOR A WHILE FOR SHELTER FIX MY SITUATION BUT THAT'S A GREAT FEAR AND I THINK IT SHOULD BE ADDRESSED IN SOLUTIONS.

THANK YOU FOR YOUR TIME. THANK YOU. HI, I'M BONNIE CANOVA AND I LIVE IN LONG COVE AND I JUST WANT TO TALK JUST A SHORT MINUTE TODAY ON THE CDC PROJECT TODAY YOU WILL CONSIDER A MEMORANDUM OF BETWEEN THE TOWN OF HILTON HEAD AND CDC FOR THE TOWN TO PROVIDE ANNUAL FUNDING TO SEE CDC THROUGH THE AFFILIATED FUNDING PROCESS FOR WORKFORCE HOUSING. WE URGE YOU TO VOTE NO TO THE MEMO YOU FIRST OF ALL SEE CDC ONLY ORGANIZED IN MAY 23 AS A51 C3 ENTITY HAS NO VIABLE BUSINESS MODEL OR DEMONSTRATE OPERATING RECORDS IN DEVELOPING AND MANAGING WORKFORCE HOUSING BY OBTAINING THE AFFILIATED AGENCY STATUS IT WILL BENEFIT FROM TOWN COUNCIL SUPPORT AND A FAST TRACK PERMIT PROCESS AND IN ADDITION TO AND CONTINUED FUNDING FROM TAXPAYERS. BUT THE CDC HAS YET TO DETERMINE THE BASIC QUALIFICATION OF AM I IN THE AMA WITH YOU? IT SAYS UP TO 120% OF AMA APPEAL TO HILTON HEAD AND THE CDC PRESENTATION.

IT TIED 150%. AM I SO WHICH ONE ARE YOU VOTING ON TODAY? IN ADDITION THE CDC WORKFORCE HOUSING MODEL INVOLVES MANY LAYERS OF NONPROFIT ENTITIES EACH TAKING A CUT FROM THE COUNTY OR THE MUNICIPALITY GRANTS OR ADMINISTRATOR OF AND MANAGEMENT FEES. AS AN EXAMPLE, THE 600,000 COUNTY GRANT WILL BE ADMINISTERED BY THE BEAUFORT JASPER HOUSING TRUST BY A51 C3 ENTITY WHICH WILL BE MANAGED BY COMMUNITY WORKS ANOTHER 5013C BASED IN GREENVILLE. THE CDC ALSO RECEIVED 100,000 FROM THE COMMUNITY FOUNDATION OF THE LOWCOUNTRY A5013C THAT HAS RECEIVED MILLIONS OF DOLLARS FROM THE TOWN OF HILTON HEAD NOT TO MENTION THAT ONE OF SIX BOARD MEMBERS SITS ON THE BEAUFORT JASPER HOUSING FUND TWO ON THE COMMUNITY FOUNDATION OF THE LOWCOUNTRY. BY SOME ESTIMATE MORE THAN 35% OF GOVERNMENT FUNDING WILL BE SIPHONED OUT BY THE NONPROFIT BEFORE IT GOES INTO TO DEVELOPING HOUSING.

LAST BUT NOT LEAST ACCORDING TO THE MEMO YOU IN THE EVENT THAT CCD NO LONGER EXISTS THE TOWN WILL SINGLE ABILITIES AND RESPONSIBILITIES FOR CBDCS HOUSING UNIT.

WE DON'T WANT OUR TAX DOLLARS TO BE SPENT IN THE LANDLORD SO PLEASE VOTE NO TO THE MEMO YOU TODAY. THANK YOU AND THANK YOU ASHLEY PHILLIPS LIVE IN INDIGO RUN PLEASE VOTE NO TO THE IMO YOU BETWEEN THE TOWN OF HILTON HEAD AND THE CCD SEE OUR TAX DOLLARS SHOULD NOT BE USED FOR A NOT FOR PROFIT ORGANIZATION CDS REQUEST OF $600,000 WILL NOT BE A ONE TIME ASK. THEY ARE ASKING FOR A YEARLY CONTRIBUTION ALSO THE CDCC IS ASKING FOR THE TOWN TO PROVIDE SUPPORT STAFF AS WELL AS SPECIAL TREATMENT EXPEDITING PERMITS NEEDED FOR THE DEVELOPMENT AND OR RENOVATION OF RESIDENTIAL UNITS THAT ACQUIRES OR MAINTAIN FUNDS. IF THIS ENDEAVOR FAILS WE LOSE OUR MONEY AND THE TOWN BECOMES A REAL ESTATE MANAGEMENT COMPANY WHICH WILL REQUIRE MORE DEPARTMENTS AND MORE EMPLOYEES WHICH MEANS EVEN MORE TAX DOLLARS NEEDED. CBC ALSO STATES THAT THE RENTAL OF ANY WORKFORCE HOUSING UNIT SHALL NOT EXCEED 120% OF AMI FOR HILTON HEAD FIGURE WORKS

[01:55:02]

OUT TO BE AN INCOME OF APPROXIMATELY $150,000. PLEASE EXPLAIN TO ME HOW TYPE OF INCOME WOULD BE QUALIFIED FOR RENT CONTROLLED HOUSING THE CURRENT TOWN WORKFORCE HOUSING FRAMEWORK HAS THE RMI AT 60 TO 80% THE OFFICE PROJECT IS AN INDICATOR THAT THE PRIVATE SECTOR CAN COME UP WITH SOME SOLUTIONS TO HELP WITH WORKFORCE HOUSING WITH WORKFORCE HOUSING SHORTAGE IF THE CDC HAS PRIVATE DONORS WHO HAVE ALREADY LARGE SUMS OF MONEY TOWARDS PURCHASING LOWER PRICED HOMES ON HEAD ISLAND WHY DON'T THESE INVESTORS JUST BUY THE PROPERTIES OUTRIGHT, RENT THEM THEMSELVES TO LONG TERM RENTERS INSTEAD OF USING OUR TAX? IN CLOSING, I WANT TO BE CLEAR I'M NOT AGAINST FINDING SOLUTIONS TO HELP WITH OUR WORKFORCE HOUSING ISSUES. I'M AGAINST USING MY TAX DOLLARS TO DO SO. THANK YOU. THANK YOU.

GOOD AFTERNOON. THANKS FOR ALLOWING ME TO SPEAK TODAY.

MY NAME IS LEE LUCIER. I'M CEO AND GROUP IRELAND RESIDENT.

AS YOU KNOW THE RICH SUBGROUP HAS RECENTLY CREATED ISLANDER HOUSING WORKER HOUSING AND MOST RECENTLY MEDICAL HOUSING. THIS WAS DONE THROUGH HOUSING CONVERSION OF COMMERCIAL SPACE TO HOUSING AND ALL WITH PRIVATE . HOUSING DOES WORK WITH PRIVATE FUNDING WITHOUT PUBLIC ASSISTANCE OR JEOPARDIZING YOU KNOW OUR ISLAND CHARACTER.

THIS HAS BEEN PROVEN WITH A VERY LIMITED ROI BUT WITH SOME OF OUR HOUSING MODELS BEEN ATTACKED AS A BAD SOLUTION OR THE WRONG PATH FOR THE ISLAND AS HAS THE CDC CDPHE AND HABITAT REMAINS HAVE BEEN CRITICIZED ALSO. I'M HERE TO SAY THAT ALL MODELS OF ISLANDER HOUSING WERE SUPPORTING THE INVENTORY AND SECURING OF ADDITIONAL LONG TERM RENTAL OPTIONS ARE NECESSARY. PRIVATE FUNDING ISN'T ALWAYS THE CORRECT FINANCIAL ANSWER NOR THE ONLY ANSWER IN ALL FEASIBLE HOUSING MODELS NEED TO BE PURSUED BY THE TOWN TO COMBAT THIS HOUSING EPIDEMIC. THIS PROCESS WILL BE PART OF THE PROGRAM TO FIND OUR HOUSING SUCCESS HILTON HEAD ISLAND.

THEREFORE I AM IN FULL SUPPORT OF THE TOWN ENTERING INTO MOTION AND BOTH CDS AND FOR HUMANITY AND THEIR FUNDING IN JANUARY TO ADD WORKFORCE HOUSING SOLUTIONS.

THE TOWN'S CURRENT PLANNING EFFORTS DEMONSTRATE ITS COMMITMENT TO A SIGNIFICANT GROWTH MANAGEMENT. BUT WITH THIS THERE HAVE BEEN TOO MANY QUESTIONS HOW MUCH NEW SKILL DEVELOPMENT IS TOO MUCH FOR OUR THE FUTURE PLACEMENT OF NEW DEVELOPMENT IS THE KEY TO THE ISLAND'S INFRASTRUCTURE AND THE ISLANDER WAY OF LIFE. THE CDS PLAN IS THE ONLY CURRENT PROPOSAL THAT DOESN'T ADD ANY NEW AND OR AWARENESS TO OUR ISLAND.

THIS PLAN DOES NOT REQUIRE ANY ADDITIONAL SQUARE FOOTAGE BE CONSTRUCTED.

THE HABITAT MODEL IS THE PROVEN PATH NEW ISLANDER HOMEOWNERSHIP WITH MINIMAL DEVELOPMENT ON THE ISLAND AND AGAIN KEEPING WITHIN ISLAND CHARACTER AND OR ELEMENT .

THESE TWO PARTNERSHIP PROPOSALS IN CONJUNCTION WITH A LONGER TERM LIKE NORTHPOINT AND PRIVATE DEVELOPMENT TO MEET PRIVATE DEVELOPER INITIATIVES ARE ALL NEEDED TO MAKE MEANINGFUL CHANGE TO OUR WORKFORCE HOUSING PROBLEM. I URGE YOU TO VOTE IN FAVOR BOTH IN OUR USE TODAY AND TO RECOMMEND FUNDING FOR BOTH CDC AND HABITAT FOR HUMANITY.

THANK YOU. GOOD AFTERNOON. I'M JOHN SUMMERS FROM HILTON HEAD PLANTATION. I'M HERE TO ASK YOU TO VOTE NO ON A MEMORANDUM OF UNDERSTANDING WITH THE COASTAL COMMUNITY DEVELOPMENT CORPORATION.

ALL OF US IN THIS ROOM BELIEVE WE HAVE A NEED TO LOOK AT THE WORKFORCE HOUSING ISSUE.

WE ALL BELIEVE THAT ONE SOLUTION IS NOT THE ANSWER. ALSO YOU ARE AWARE OF YOUR FISCAL RESPONSIBILITIES TO THIS TOWN TO PROVIDE A CLEAR DUE DILIGENCE ON ALL FINANCIAL MATTERS YOU HAVE RECEIVED IN-DEPTH DATA REGARDING OUR OPPOSITION TO THIS CENTRAL YOU.

I DO NOT WISH TO REHASH THE INFORMATION THE FACTS OR THE FACTS.

SIMPLY ASK YOURSELF DOES THE CDCC SHOW ANY PROOF OF CONCEPT TO WARRANT GIVING A START UP FOR YEARS TO COME? WE HAVE ONLY SEEN POTENTIAL NOT VERIFIED.

HAS THIS IDEA BEEN DONE IN OTHER COMMUNITIES? DOES IT TRULY HELP? SOMEONE MAKING OVER $100,000 A YEAR? I KNOW MANY OF THE CCD BOARD ARE LONG TIME FRIENDS WITH TIES TO THE COUNCIL AND TIES TO MANY OF THE FEATURED UIC ALTRUISTIC INVESTORS. BUT YOU CAN SEE PAST PONZI SCHEME WHICH USES TOWN TO SEED AND SEED THEIR RETURN ON INVESTMENT. THEY ONLY PLEDGE FUNDING UNTIL THE TOWN'S GIFT IS GUARANTEED. I KNOW YOU SEE PAST THE COST CURVE BENDING PRINCIPLE LEAVES THE TAXPAYER HOLDING THE BAG. I KNOW YOU LOOK PAST THE DESPERATE CRIES WITH NO SUBSTITUTES TO THROW MONEY AT THE WORKFORCE ISSUE. YOU UNDERSTAND GOVERNMENT IS

[02:00:02]

PROCESS DECISIONS DONE IN HASTE ARE FOLLY. LASTLY STAFF AMBIGUITY RELATED TO THIS MEMO SHOWS IT SHOULD NOT HAVE BEEN CONSIDERED THIS SERIOUS OPEN ENDED QUESTIONS NEED TO BE SCRUTINIZED. ALL HAVE CONSIDERABLE FINANCIAL AND REPERCUSSIONS.

THE FOCUS OF THIS COMMITTEE SHOULD BE TO DISCERN ANSWERS TO THOSE QUESTIONS NOT QUICKLY MOVING ALONG THE DOCUMENTS THROWING AWAY MONEY FOR YEARS TO COME.

THANK YOU. THANK YOU. HELLO.

TURN IT OFF DETAILS FOR MANY PEOPLE. ERIC SUMMERVILLE RESIDENT AND I'M JUST GOING TO BE SHORT AND TO THE POINT. I AM.

I'M FOR THIS PROGRAM AS LONG AS IT DOESN'T TAKE TOWN FUNDING I AM LESS.

NO I'M AGAINST THIS PROGRAM. IF IT TAKES TOWN FUNDING. I'M LESS AGAINST IT.

IF IT TAKES COUNTY FUNDING I'M AGAINST IT. IF IT TAKES STATE FUNDING, I'M NOT AGAINST IT ALL. IF IT TAKES FEDERAL GOVERNMENT FUNDING.

FUNDING THE AMERICAN RESCUE PLAN IS A GOOD PLAN. I THINK IT'S EXCESSIVE SPENDING FOR THE FEDS BUT EVERYBODY'S GOT THEIR HAND OUT. WE SHOULD TAKE SOME OF THAT MONEY AND DO SOMETHING GOOD WITH IT. WE NEED LOW RENTALS ON THIS ISLAND. WE'LL HAVE LOW AVAILABILITY TO WORKERS.

THANK YOU. THANK YOU. GOOD AFTERNOON.

COUNCIL MEMBERS MY NAME IS SUSAN. WE'RE SPEAKING I LIVE AT 50 MARTIN LANE ON THE ISLAND AND BE VERY QUICK AND SHORT CONCUR AND STAND WITH JOHN SPARSELY AND I CAN FITZPATRICK AND OTHERS THAT WANT YOU TO VOTE NO ON THE MEMORANDUM.

THANK YOU FOR YOUR TIME. GOOD AFTERNOON LYNN FINE TEAM ME HP I'D LIKE TO SAY THAT I SUPPORT CCD MODEL AS A PURELY PRIVATE INITIATIVE AND NONPROFIT THAT UTILIZES SOLELY PRIVATE INVESTMENTS AND DONATIONS TO SUBSIDIZE HOUSING FOR WORKERS IS GREAT BUT IN MY OPINION IT IS NOT APPROPRIATE USE OF TAXPAYER DOLLARS. I OPPOSE A GRANT FROM THE TOWN AND I OPPOSE THE STATUS OF AN AFFILIATED AGENCY OR CCD FOR SEVERAL REASONS.

I'LL ADDRESS JUST ONE NEITHER THE TOWN GOVERNMENT NOR CCD SHOULD PICK WINNERS AND LOSERS AND ONLY TWO PARTIES INTO THEIR QUEST AND CC HAS ALREADY DEMONSTRATED THAT IT DOES NOT ADHERE TO THE SELECTION IT SET FOR ITSELF ABOUT 55 PERSON HOUSEHOLDS ON HOW THEY HAVE INCOME BELOW THE TOWN'S EMI. THERE IS NO TRANSPARENCY AND FAIR WAY THAT CC DC CAN PICK A HANDFUL OF WINNERS FROM THOSE 9000 HOUSEHOLDS. I'M NOT CONCERNED ABOUT THAT.

THEY'RE USING PRIVATE MONEY BUT WHEN TAX ARE AT STAKE. TRANSPARENCY AND ACCOUNTABILITY ARE REQUIRED BUT NOT FEASIBLE. IN D.C. ON VIDEO THEY DEMONSTRATED THAT DID NOT ADHERE TO THE CRITERIA THEY SET FOR THEMSELVES. THEY A SINGLE WOMAN WHO MOVED TO THE AREA A YEAR AND A HALF AGO WORKS AS A PARALEGAL FOR A LAW FIRM ON HHI.

SHE WAS LIVING IN A STUDIO APARTMENT IN BOSTON UNTIL DC SELECTED HER AS A WINNER TO RENT A BELOW MARKET RATE APARTMENT ON HHI. THIS YOUNG ASPIRATION IS TO MOVE AWAY FROM THE AREA TO GO TO LAW SCHOOL. THE SUBSIDIZED RENTER DOES NOT WORK AN AFFILIATE PARTNERS D.C. OR IF SHE THAT COULD BE A CONFLICT IF GOVERNMENT MONEY INVOLVED. SHE WAS NOT VOLUNTARILY DISPLACED AND SHE DID NOT RESIDE ON HILTON HEAD ISLAND. SHE MOVED HERE A YEAR AND A HALF AGO AND IN HER OWN WORDS SHE MOVED FROM A STUDIO IN BLUFFTON THAT COST 1600 DOLLARS A MONTH TO AN APARTMENT ON HILTON HEAD ISLAND AND COSTS 1600 DOLLARS PER MONTH. SO WHAT IS THE BENEFIT TO THE RESIDENTS OF HILTON HEAD ISLAND ? I DO NOT WANT TAXPAYER DOLLARS INVOLVED CHOOSING WINNERS OR LOSERS PARTICULARLY WHEN START UP ORGANIZATION ISN'T EVEN MEETING THEIR OWN PRIORITY CRITERIA. I'M ASKING THAT YOU VOTE NO ON THIS CBC PROPOSAL. THANK YOU. THANK YOU.

HI. MY NAME IS SUSAN GIARRUSSO. I LIVE IN MY ROOMS. I'M NOT AS FAMILIAR WITH THE CDS AND WHAT YOU'RE LOOKING TO ACCOMPLISH IS A LOT OF MY

[02:05:02]

FRIENDS ARE TODAY. BUT WHAT I DID HERE TODAY BY SITTING THROUGH THE MEETING IS THAT THERE ARE A LOT OF QUESTIONS YOU ALL HAD QUESTIONS TO THE ORGANIZATION ABOUT METRICS AND OTHER THINGS TO MONITOR. I'M ALSO A SMALL GOVERNMENT TYPE OF PERSON. I FIND THAT TO VOTE YES FOR THIS IS PREMATURE.

I AGREE WITH WHAT MEGAN SAID ABOUT PUMPING THE BRAKES AND THERE'S NO RUSH.

LET'S DO THIS RIGHT. LET'S GET LET'S NECK LET'S NOT GET ON THE HOOK HOW PAYERS COUNT TAXPAYERS FOR THIS. I'LL SAY IT'S WORTHY GOAL BUT IT'S NOT WE'RE NOT IN THE BUSINESS OF HOW BIG THE HOUSING AUTHORITY SO PUMP THE BRAKES. GET YOUR QUESTIONS ANSWERED AND VOTE NO THE AT THIS POINT. THANK YOU. THANK YOU.

GOOD AFTERNOON. MY NAME IS CAROL OR I LIVE AT THE CYPRESS.

I DID NINE WORDS ON THE WAY AND I WANT TO YOU I AM AN ADVOCATE FOR AFFORDABLE HOUSING AND SPECIFICALLY FOR WORKFORCE HOUSING. BEEN INVOLVED IN ONE OF THE FIRST PROJECTS IN NEW JERSEY WAS SUCCESSFULLY NOT ONLY DEVELOPED BUT ALSO MAINTAINED FOR 30 SOME ODD YEARS. I CHAIRED THE SEGMENTS OF HOUSING CORPORATION THAT ADMINISTERED THIS HOUSING AND THERE WERE A LOT ALMOST 800 INSIDE AFFORDABLE UNITS.

I'M CONCERNED TODAY AND I WILL ADMIT I HAVE NOT READ THE MEMORANDUM OR UNDERSTANDING OR DONE ANYTHING OTHER THAN COME IN THIS AND. I HAVE CONCERNS.

I HAVE PARTICULAR CONCERNS ABOUT THE SO CALLED AFFORDABLE IT AND WHO'S GOING TO BE ALLOWED TO PURCHASE OR RENT THESE FACILITIES. AND I THINK HILTON HEAD WOULD BE BETTER SERVED BY EXAMINING THAT FURTHER AND TALKING TO PEOPLE WHO HAVE HAD SPACE CENTRIC HOUSING EXPERIENCE. I REALLY BELIEVE THAT YOU'RE SURROUNDING THE RESIDENTS AND YOURSELVES. SURE. I THINK IT COULD BE DONE IN A BETTER WAY AND I WOULD ASK YOU ABOUT YOU KNOW BECAUSE, I THINK YOU SHOULD STUDY MORE.

THANK YOU. THANK YOU, CHAIRMAN AND MEMBERS OF THE COMMITTEE.

THANK YOU VERY MUCH FOR YOUR. THANK YOU VERY MUCH FOR THE OPPORTUNITY OF ALLOWING ALL OF US TO COME TO SESSION. AND TODAY I THINK YOU COME TO THIS COUNCIL MEETING MEETING.

TODAY I CAME THE LAWYER. I NEEDED HELP WITH SOMETHING REGARDING HOUSING FOR MY GRANDCHILDREN. MY NAME IS THOMAS YVONNE RHODE JUNIOR.

I CAME TO HILTON HEAD IN 1935. I STILL LIVE HERE. I LIVE OUT IN THE WOODS OFF KENNY MILLER DRIVE TO BE SPECIFIC I I'M HAPPY TO SAY THAT I'M STANDING HERE BECAUSE I BELIEVE SOME OF THE FOLKS HERE IN THIS ROOM TODAY REALIZE THAT THEY'RE THIS DISTRICT LAST YEAR I BELIEVE INDICATED THAT 54,400 CARS PER DAY FROM ACROSS THE BRIDGE ON THE BRIDGE IS DIFFERENT FROM THE MAINLAND TO HILTON HEAD PER DAY. I DON'T COUNT FOR VACATION DURING THE SUMMER SO THE MAJORITY OF THEM COME TO PROVIDE PROFESSIONAL SERVICE TO THOSE OF US THAT LIVE ON HILTON HEAD ISLAND, SOUTH CAROLINA TEACHERS HEALTH CARE WORKERS LAND FOR PEOPLE THAT WORK IN THE HOSPITALITY INDUSTRY AND MANY OTHERS.

[02:10:02]

I HAPPY TO SAY THAT I HAPPEN TO BE ONE OF THOSE PERSONS THAT DID SERVE ON THE HOUSING COMMITTEE MANY YEARS WHEN THE RUGA REPORT WAS WRITTEN AND MANY HERE LEFT ME MANY YEARS AGO. THE TOWN COUNCIL DECIDED TO GET RID THAT HOUSING COMMITTEE.

I AM HAPPY TO SAY AS I STAND HERE I NEED TO SAY AGAIN PLEASE SUPPORT THE EFFORT BEING PUT AGAINST THE THREE TIMES. PLEASE SUPPORT THE EFFORT DOING WHATEVER IT TAKES TO GET HOUSING FOR WORKING PEOPLE ON MY OWN. THANK YOU.

I HOPE I'M LAST NOBODY ELSE HOPE THREE HURDLES. IT'S ALL ABOUT THE LAW.

IT'S NOT IT'S NOT ABOUT WORTHY OR HEARTFELT. LET ME REPEAT THAT.

IT'S ALL ABOUT THE LAW. NOT WORTHY OR HEARTFELT. THE TOWN BREAKS THE LAW.

THE TOWN GETS SUED. IT'S AS SIMPLE AS THAT. JUST LIKE YOU GOT SUED FOR THE $600,000 YOU GAVE TO THE PLANTATION, THE DREDGING OF HARBOR TOWN THAT THE PUBLIC DOES NOT HAVE ACCESS TO IN A PRIVATE GATED COMMUNITY. I WANT THAT MONEY PAID BACK TO THE AND THAT LAWSUIT IS GOING ON AND WE TO WIN THAT LAWSUIT USING A TAX ACCOMMODATION TAX FUNDS HOSPITALITY FUNDS. IF IT'S AGAIN IT'S AGAINST THE LAW THAT THE LAW HAS CHANGED.

VIOLATION OF STATE CONSTITUTIONAL LAW USING USING PUBLIC MONIES FOR PRIVATE PURPOSES DOES NOT THE PUBLIC GOOD REASON USE OF ALL TAXPAYER .

IT'S ILLEGAL TAX MONEY HAS A. YOU CAN'T JUST USE IT FOR ANYTHING YOU WANT.

YOU CAN'T JUST PICK AND CHOOSE WHO YOU'RE GOING TO GIVE MONEY TO.

IT HAS JUST GOT TO BE UNDER THE LAW. I ALSO I SAW NO ADDED PROVISION WITH TERMS AND CONDITIONS FOR CONTRACT TO CONDUCT IT TOTALLY INDEPENDENT AUDIT OF ALL THESE MONIES THAT WOULD BE ANNUALLY A FORENSIC AUDIT EVERY THREE YEARS AND ALSO SINCE SUCH TAX FUNDS ARE BEING USED. EVERY ONE OF US IN THIS ROOM GETS TO FULLY FUND THE USE OF THOSE MONIES. FREEDOM INFORMATION ACT TAXPAYERS HAVE A RIGHT TO SEE WHERE THEIR MONEY IS GOING AND WE WE DON'T HAVE A FOUR YEAR COMPLIANCE.

WE NEED SEE A DRAFTING CONTRACT WITH THE TERMS AND CONDITIONS. THE NAME OF THE LAWYER AND THE NAME OF THE LAW FIRM AND IT DOESN'T NEED TO BE OUR TOWN LAWYER.

I CAN TELL YOU THAT. OKAY. AND HOW DO WE TRUST ACCOUNTING OR ANYTHING? OUR CONTRACTS WITH, OUR CONTROLS AND TRANSPARENCY AND ACCOUNTABILITY WE CAN'T TRUST ANYTHING WE HEAR FROM ANYBODY. SO LET ME ANSWER THE LAWYERS STAFFORD AND GROVER AND CONTRACT. LET ME ASK THEM A QUESTION IF WE'RE GOING TO TRUST ALL THIS. THEN WHY DID YOU DEVELOP A FIVE YEAR MULTIMILLION DOLLAR CONTRACT WITH OUR WITH OUR HIRED DEMO THAT WAS FRAUDULENT HAD NO AUDIT PROVISIONS AND FACT THE HEAD OF THE DMO STATED TO ALL OF YOU HIS USE OF MILLIONS OF OUR TAX FUNDS IS HIS SECRET AND IT'S NONE OF ANYBODY'S BUSINESS TO SEE WHERE IT HIM HE SPENDS AND USES MILLIONS OF OUR TAX MONEY. IS THIS WHAT WE'RE FACED WITH WITH EVERY TIME WE SEE SOMETHING WE'RE NOT GOING TO GIVE YOU AN ACCOUNTING THIS MONEY.

ALL YOUR STAFFORD IS THIS WHAT YOU MEAN WHEN YOU SAY YOU WANT TO ASSURE THAT THE PUBLIC MONEY IS USED LEGALLY? YOU'RE A LAWYER. YOU'RE FROM ATLANTA.

I KNOW ALL ABOUT YOU. I'VE SEEN THAT AND I'M VERY GLAD TO HELP AND THANK YOU.

SO YOU KNOW WHEN A LAWYER SPEAKS FOR ATLANTA AND ASSUME YOU'RE INTELLIGENT MA'AM BUT WHEN YOU TALK THANK YOU FOR YOUR COMMENTS. ANYONE ELSE OKAY.

WE WILL BRING IT BACK TO THE DAIS. MR. GRUBER.

MR. WOLF. ANY ADDITIONAL COMMENTS THAT YOU WANT TO PROVIDE, SIR? BUT I JUST WANTED TO TAKE A VERY BRIEF MOMENT TO OUTLINE THE PROPOSED USE OF FUNDING FOR THIS PURPOSE WOULD BE FROM TAXES. AND SO WE'RE WORKING UNDER THE REQUIREMENTS ACT 57 OF 2023 WHICH IS WHAT AUTHORIZED THE EXPENDITURE OF THOSE FUNDS FOR THIS PARTICULAR PURPOSE. AND WITHIN THAT OUR REQUIREMENTS THAT WE ARE STILL WORKING THROUGH AND THAT WE HAVE TO ULTIMATELY COMPLETE BEFORE WE CAN AUTHORIZE THE USE

[02:15:03]

OF THOSE FUNDS. WHAT WOULD LIKE TO DO IS KNOWING THE COMMENTS THAT WE'VE HEARD TODAY THERE ARE A LITTLE BIT MORE NUANCED THAN WHAT THEY WERE WITH UNIVERSITY OF SOUTH CAROLINA. THE USBS WERE PRETTY STRAIGHTFORWARD AND I THINK WE ALL UNDERSTOOD. THESE I WANT TO MAKE SURE THAT WE GET THE LANGUAGE RIGHT.

WHAT I'D LIKE TO DO IS WORK ON PROVIDING SOME AMENDMENTS TO THE DRAFT AND YOU BRING BACK TO YOU AT YOUR NEXT MEETING WHICH GIVING TIMING WOULD STILL BE THE NEXT TOWN COUNCIL MEETING WOULD ALLOW YOU TO STILL MOVE THIS OUT ON THE SAME SCHEDULE IF YOU WERE INCLINED TO DO THAT TODAY. AND SO I JUST WANTED TO KIND OF BRING THAT FORWARD AS A SUGGESTION THAT IF WE BRING THIS BACK AT THE NEXT MEETING I CAN HAVE THAT INFORMATION BETTER OUTLINED WITHIN THE DOCUMENT BASED UPON THE FEEDBACK WE HEARD.

AND CAN YOU STATE WHEN THE NEXT MEETING IS JUST A GROUP ON THE DATE OF THE NEXT THEY MEET ON JANUARY 9TH. THANK YOU. OKAY.

JUST I THINK THAT'S A REASONABLE COME THIS ONE HAS ARE YOU ABLE TO SUMMARIZE POINTS THAT YOU'RE GOING TO BE WORKING ON OR BE ADDING PROVISION WITH REGARDS TO INDEMNIFICATION FROM THE CDCC TO THE TOWN? WE'RE GOING TO LANGUAGE WHICH WOULD FURTHER RESTRICT THE COVENANTS TO BE CLEAR IN TERMS OF THEIR USAGE.

WE'RE GOING TO ADD LANGUAGE TO REQUIRE THAT THE INDIVIDUALS SELECTED FOR THIS HAVE ACTIVE EMPLOYMENT ON THE ISLAND NOT OFF THE ISLAND. WE'RE GOING TO AMEND THE M.O.

TO REMOVE THE DEVELOPMENT LANGUAGE AND JUST MAKE IT PURELY THE ACQUISITION OF EXISTING PROPERTIES ON HILTON HEAD. WE WILL AMEND LANGUAGE TO REMOVE THE PREFERENCE IN SELECTING CDCC AFFILIATED ENTITIES AND THAT WOULD BE BASED JUST SOLELY UPON I IN DOCUMENTED EMPLOYMENT EXPERIENCE.

WE'RE TO ADD LANGUAGE REGARDING THE REINVESTMENT OF PROCEEDS FROM THE SALE OF ANY UNITS IN THE PROGRAM WITHIN A FIXED PERIOD OF TIME. AND THEN WE'RE GOING TO LOOK AT I BELIEVE COUNCILMAN BROWNLEE INDICATED THAT WE DO NEED A FLOOR SO WHAT I WOULD PROPOSE IS A RANGE OF 30% TO 120% AMI. I WANT FURTHER CLARIFICATION ON THE ISSUE OF RENTAL PREFERENCE.

THAT ISSUE I THINK IS IMPORTANT FOR THE PUBLIC TO KNOW THAT THEY HIGH RANKING CRITERIA WILL NOT BE A AFFILIATED PARTNER OF THE NOW HOW YOU WERE THAT IN THE IN THE MEMO YOU IS OPPOSITE WITHOUT SO I I WANT THAT TO BE CLEAR BECAUSE I GET VERY UNCOMFORTABLE WITH THE POTENTIAL PERCEPTION OF CONFLICT. AND I THINK THE WAY THAT THAT WOULD ULTIMATELY WORK IS ANYBODY WHO MEETS THOSE MINIMUM .

SO THE INCOME REQUIREMENTS OF THE RANGE THE EMPLOYMENT REQUIREMENTS OF HAVING ACTIVE EMPLOYMENT ON THE ISLAND IS QUALIFIED HOW THEY GO ABOUT SELECTING IT THEN NEEDS TO BE ON SOME KIND OF NEUTRAL CRITERIA. BUT WITHOUT REGARDS TO PREFERENCE OF EMPLOYMENT, WOULD THAT BE AN ACCURATE STATEMENT? HERE'S THE SITUATION THAT I ASKED EARLIER IN THE DAY WHO PREVAILS IF IT'S NOT IN THE MEMO YOU YES SIR.

AND THAT'S WHY WE NEED TO PUT IT IN THE MEMO. YOU THANK YOU AND.

THAT'S PRIMARILY WHY I WANT TO TAKE A STAB AT DRAFTING IT TO BRING IT BACK AND MAKE SURE THAT GOT IT ACCURATELY STATED BEFORE WE MOVE OF FOLLOWING UP ON YOUR ANSWERS TO MR. JAMES QUESTION THERE WERE SEVERAL ISSUES THAT WERE RAISED THAT YOU REPLIED THAT THIS IS A MATTER OF POLICY FOR THE TO DECIDE AND THINK SOME OF THEM WE DIDN'T SAY ANYTHING AND I ASSUME THAT THEY'RE NOT IN THE LIST THAT YOU READ. THE ONLY ONE THAT IS IS THE THE FLOOR THE CEILING IN TERMS OF THE AM-I I WANT TO HAVE INSERTED 30% 120% FOR CONSISTENCY BECAUSE I BELIEVE THOSE ARE THE SAME NUMBERS THAT WE HAVE IN OTHER DOCUMENTS.

BUT YOU ARE CORRECT THAT IS A THAT IS A FIGURE FOR YOU TO PURELY DETERMINE IF THERE ARE ANY ISSUES THAT YOU SAID ARE UP TO COUNCIL MAKING AREN'T YOU HAVING ALREADY SPECIFIED? I WOULD LIKE TO SEE CHOICES. OKAY FOCUS COUNCIL'S ATTENTION ON THE POLICY ISSUE WHAT I WILL TRY TO DO IS DEVELOP A LIST OF POLICY SPECIFIC QUESTIONS THAT WE CAN IDENTIFY AS PART OF OUR DISCUSSION AT THE NEXT MEETING. THANK YOU, STEPHANIE.

THANK YOU. I WANT TO SAY I APPRECIATE THE HEARTFELT COMMENTS THAT I'VE HEARD FROM MANY CITIZENS TODAY ON BOTH SIDES OF THIS QUESTION. WE HAVE LEARNING MORE AND MORE EVERY DAY ABOUT THE CRISIS WORKFORCE HOUSING ON THIS ISLAND.

WE NEED TO CONTINUE TO ATTACK THESE PROBLEMS AND DO THE BEST CAN TO SOLVE THESE PROBLEMS.

[02:20:02]

SOUTH CAROLINA ORIGINALLY TO THE SOUTH CAROLINA LAW WAS RECENTLY AMENDED TO SPECIFICALLY ALLOW THE USE OF TAX FUNDS FOR WORKFORCE HOUSING.

WE ARE FOLLOWING THE DICTATES THAT LAW AND I WILL SUPPORT THIS.

FINALLY I WANT TO SAY TO THE CITIZENS HERE THIS IS NOT THE FINAL DECISION.

THIS IS JUST A HEARING BEFORE FINANCE ADMINISTRATIVE COMMITTEE WHICH CAN OR MAY NOT MOVE THIS FORWARD TO THE FULL COUNCIL WILL MAKE THE DECISION .

THANK YOU. THANK YOU, MR. GRUBER. I'M FOCUSING ON TIMING AT THIS POINT. YES, SIR. BASED ON THE COMMENTS THAT I'VE FROM DIAS, YOU NEED MORE TIME TO PROVIDE US LANGUAGE THAT WE ARE COMFORTABLE WITH BASED ON THE DISCUSSION AND JANUARY 9TH IS ON FOR ME. YES, SIR.

THE MEETING AND COUNCIL MEETING AFTER THAT WOULD BE WHEN THE COUNCIL MEETING AFTER THAT IS JANUARY I BELIEVE. 23RD 1616. THANK.

JANUARY 16TH. OKAY. ALL RIGHT.

I BRING THAT TO MY ATTENTION BECAUSE THE WHOLE REASON THAT WE ARE HERE HAVING THIS DISCUSSION IS BECAUSE THIS WAS PUSHED DOWN THE FROM THE ENTIRE COUNCIL TO BE FIGURED OUT.

RIGHT. AND I THINK WE'RE REALLY CLOSE TO HAVING IT TO A POINT WHERE WE CAN SEND IT BACK UP. SO I WOULD JUST ASK MR. GRUBER IF YOU USED THE WORD NUANCED I THINK AS FAR AS THE LANGUAGE THAT YOU WE HAVE TO CREATE. YES, SIR.

IF YOU FEEL IF THIS COMMITTEE WOULD NEED MORE THAN THAT MEETING, THEN I WOULD ASK THAT YOU PULL THIS COMMITTEE FOR ESPECIALLY GIVING IN ADVANCE OF JANUARY 9TH SO WE CAN GET THIS BACK TO COUNCIL IN A TIMELY MANNER. YES, SIR.

ALL RIGHT. THANK YOU. ANY FURTHER? GOOD. THANK YOU, SIR. ALL RIGHT, WE WILL MOVE ON.

WELL, EXCUSE ME. WE WILL TAKE A BRIEF RECESS BE ,I THANK YOU. OKAY, MR. GRUBER, THANKS A LOT. THIS IS RESOLUTION AUTHORIZING

[7.b. Consideration of Resolution Authorizing a Memorandum of Understanding with Habitat for Humanity to Support Workforce Housing - Josh Gruber, Deputy Town Manager]

SOME OF YOU IN THE WAY OF HABITAT FOR HUMANITY. YES, SIR.

I SO AGAIN, TO START WITH KIND OF BY WAY OF BACKGROUND HABITAT REGIONAL HILTON HEAD REGIONAL HABITAT FOR HUMANITY APPLIED DURING THIS PAST YEAR AFFILIATED AGENCY FUNDING CYCLE REQUESTING $500,000 IN FUNDING TO BE USED TOWARDS THE ACQUISITION OF LAND THAT WOULD THEN BE USED TO DEVELOP WORKFORCE HOUSING UNITS. AT THE TIME COUNCIL DID NOT PROVIDE FUNDING AS PART OF THAT REQUEST BECAUSE AT THAT POINT ACT 57 HAD NOT BEEN FINALIZED NOR HAD BEEN SIGNED INTO LAW. SO SINCE THAT TIME THAT'S NOW COME TOGETHER AND THAT BRINGS US KIND OF TO WHERE WE ARE TODAY WHERE. STAFF WAS ASKED TO DEVELOP A MEMORANDUM OF UNDERSTANDING THAT WOULD OUTLINE THE VARIOUS ROLES AND RESPONSIBILITIES FOR THE PARTIES IF THE TOWN WERE INCLINED PROVIDE FUNDING AS HAD BEEN REQUESTED UNDER THAT AFFILIATED AGENCY FUNDING CYCLE. WE PROVIDED THIS DOCUMENT IN ADVANCE TO COUNCIL MEMBERS. THE ONE COMMENT THAT I DID HEAR THAT I INCLUDED IN THE MEMORANDUM TO HIGHLIGHT IS THAT THE AGREEMENT SHOULD HAVE LANGUAGE THAT ELIMINATES THE POSSIBILITY OF SHORT TERM RENTALS. COUPLE OF THINGS THAT I WANT TO ADDRESS WITH REGARDS TO THAT POINT ONE IN THE ACTUAL DRAFT MEMO YOU ITSELF UNDER SECTION THREE A AND V I IT DOES INDICATE THAT ADDITIONALLY WITHIN THE SUBMITTED PLANS ANY UNITS CREATED UNDER THIS AGREEMENT SHALL BE RESTRICTED FROM BEING USED FOR SHORT TERM RENTAL PURPOSES. SO THAT LANGUAGE IS IN THE DRAFT DOCUMENT AS IT EXISTS.

BUT IN ADDITION TO THAT I ALSO SPOKE MS. DULEY AND THE WAY THAT THE FINANCING WORKS FOR THE UNITS THAT HABITAT CREATES BECAUSE THEY BUILD THE UNITS BUT THEN THE PEOPLE OCCUPY THEM DO TAKE OUT A MORTGAGE ON THOSE PROPERTIES BUT THOSE MORTGAGES ARE TIGHTLY CONTROLLED AND WITHIN THOSE DOCUMENTS IS LANGUAGE THAT PROHIBITS WHAT WOULD ESSENTIALLY BE SHORT TERM RENTALS ESSENTIALLY REQUIRES IT TO BE USED FOR OWNER OCCUPIED PURPOSES.

SO THAT CONCERN IS COVERED KIND OF FROM TWO POINTS ONE WITHIN THE AGREEMENT ITSELF AND THEN ALSO BY WAY OF THE THE PRACTICE THAT HABITAT GOES ABOUT PROVIDING THAT FINANCING JUST KIND OF AGAIN IDENTIFY AT A HIGH LEVEL WHAT THE TERMS OF THE PROPOSED KNOW YOU CALL FOR THE USE OF THE FUNDING WOULD BE RESTRICTED FOR THE PURPOSES OF ACQUIRING REAL PROPERTY AND OR DESIGNING AND CONSTRUCTING FAMILY MULTI-FAMILY WORKFORCE HOUSING UNITS WITHIN THE MUNICIPAL BOUNDARIES OF HILTON HEAD ISLAND.

[02:25:03]

SO IT IS CONTAINED ON ISLANDS WITHIN THE MUNICIPAL. IT DOES NOT CREATE ANY KIND OF SHORTCUTS THEY WOULD NEED TO GO THROUGH THE PERMITTING AND REVIEW PROCESS AS WOULD ANY OTHER PERSON WHO BE COMING FORWARD. BUT AS WE WOULD WITH ANY OTHER INDIVIDUAL STAFF WILL WORK WITH THEM TO TRY TO EXPEDITE THAT PROCESS TO THE EXTENT THAT WE CAN AND MAKE THAT WE GIVE THEM ALL RELEVANT FEEDBACK THAT WOULD ALLOW THEM TO MOVE FORWARD AGAIN AS PART OF THE BUSINESS PLAN THEY HAVE TO PROVIDE INFORMATION OUTLINING HOW THE WORKFORCE USING HOUSING UNITS WOULD BE DEVELOPED AND HOW THEY WOULD BE MAINTAINED IN ACCORDANCE WITH GENERALLY ACCEPTED MAINTENANCE STANDARDS AND THEN ALSO IDENTIFY HOW THE APPLICANTS ARE SCREENED WHICH GIVEN THE NATURE OF THEIR PROGRAM IS ALREADY UNDERSTOOD AND KNOWN HOW THEY GO ABOUT QUALIFYING INDIVIDUALS. I'M SURE MS. DOOLEY CAN PROVIDE YOU SOME MORE INFORMATION ON THAT. AGAIN, WE HAD LANGUAGE THAT SAID THAT THE AM-I EXCEED 120% IF WE WANT TO KEEP THESE TWO AGREEMENTS SIMILAR WE CAN ALSO SET THE SAME LANGUAGE IN TERMS OF SETTING A FLOOR A CEILING. AGAIN, IT'S UP TO THE DIRECTION OF THE COMMITTEE AND COUNCIL IN TERMS OF WHAT WE SET IN THAT AGREEMENT.

I DON'T THINK THAT EITHER ONE WOULD BE IN CONFLICT WITH THE PROGRAMING THAT HABITAT CURRENTLY PROVIDES IN TERMS OF THE ONGOING AFFORDABLE NATURE.

THAT DOES GO BACK TO THE FINANCING DOCUMENTS THAT HABITAT PROVIDES WITHIN THERE THERE IS THE ABILITY FOR SOMEBODY TO SELL THEIR UNIT BUT FOR A PERIOD OF TIME THE ABILITY TO SELL IT AND WHAT THEY CAN SELL THAT FOR REMAINS RESTRICTED SO THAT THE AFFORDABLE NATURE OF THAT UNIT DOES REMAIN IN PLACE FOR A CERTAIN PERIOD OF TIME.

ALONG I BELIEVE IT'S 30 YEARS BECAUSE IT'S WITHIN THE MORTGAGE DOCUMENT, CORRECT? DEPENDS ON INDIVIDUAL OAK. THANK. AND THEN AGAIN THE SAME ACCOUNTING REPORTING AND TRANSPARENCY REQUIREMENTS THEY HAVE TO PROVIDE FINANCIAL STATEMENTS THEY HAVE TO BE ABLE TO TRACK AND REPORT. THEY HAVE TO PROVIDE AN ANNUAL INDEPENDENT AUDIT AND THAT IT HAS TO BE DONE BY A CPA EVERY YEAR AND THAT THEY WOULD ALSO THEN SUBMIT AN ANNUAL REPORT IDENTIFYING MANNER IN WHICH THE FUNDING WAS RECEIVED, HOW IT WAS UTILIZED, THE OUTCOMES THAT IT CREATED AND THE IMPACTS THAT IT'S HAD ON THE ISSUE OF WORKFORCE DEVELOPMENT ON THE ISLAND GOT THE INSURANCE REQUIREMENT WE WOULD SUPPORT HABITAT IN PROVIDING STAFF THAT COULD HELP THEM WITH DESIGN AND PERMITTING QUESTIONS.

AGAIN TO EXPEDITE THAT PROCESS AND THEN I THINK THE REMAINDER OF IT IS PRETTY STRAIGHTFORWARD . SO I'LL BE HAPPY TO ANSWER ANY QUESTIONS THAT THE COMMITTEE MAY HAVE AND I'D LIKE TO REQUEST AS I DID IN THE PREVIOUS ONE THAT THE OCCUPANTS OF THESE HOUSES EMPLOYED AND THEN ON THE ISLAND THEY ALSO THINGS YOU KNOW I WANTED TO GO DOWN A FEW THINGS AS THE INSURANCE LANGUAGE MAY MAKE WHAT WE TALKED ABOUT IN THE OTHER PRESENTATION THEM AN APPLICATION OR NOT IT DOES NOT HAVE INDEMNIFICATION LANGUAGE I THINK WE SHOULD COULD ADD THAT IN THERE BUT IT DOES PROVIDE FOR INSURANCE BASICALLY COVERING ALL ACTIVITIES THAT WOULD BE INVOLVED IN ACQUIRING OR CONSTRUCTING THE HOMES ONCE THE HOMES HAVE BEEN TRANSFERRED THERE IS NOT THAT SAME REQUIREMENT BECAUSE AT THAT POINT THEIR INDIVIDUAL WILL HAVE A QUESTION ON THE LIMITED LAND THAT WE HAVE ON THE ISLAND AND I THINK I'VE EXPRESSED THIS BEFORE THE MODEL THAT WE HAVE SEEN ON THE ISLAND IS SINGLE FAMILY ON DECENT SIZED LOTS. I HAVE A CONCERN THAT WITH THE LIMITED AMOUNT OF LAND THAT WE HAVE ON THE ISLAND. WE OUGHT TO BE PUSHING HABITAT TO BUILD A DIFFERENT KIND OF MODEL THAT IS MORE RESPONDS TO THE FACT THAT WE DON'T HAVE A LOT OF LAND.

SO I DON'T KNOW IF DUPLEXES OR SOME STATEMENT ABOUT TAKING ADVANTAGE OF THE DENSITY ALLOWED I'M NOT SURE BUT I'M I WANT TO MAKE SURE THAT WHEN WE'RE INVESTING THIS MONEY WE'RE GETTING AS MUCH ROOFTOPS AS POSSIBLE. IT SOUNDS WHAT YOU'RE LOOKING FOR IS SPECIFICITY WITH REGARDS TO A PROJECT ITSELF SO LAND AND THEN WHAT WOULD GO ON THAT LAND IN TERMS OF THE NUMBER OF UNITS YEAH BUT MY EXPECTATION MAYBE THE COUNCIL'S EXPECTATION IS THAT THE MODEL YOU IS EXPECTING A CERTAIN KIND OF APPROACH IF WE KNOW WHAT IS OR WHAT THE STANDARDS ARE. SO FOR EXAMPLE YOU MENTIONED WELL WE'LL SEE WHAT YEAH THAT'S A IF WE KNOW WHAT THAT IS WE CAN INCORPORATE THAT LANGUAGE INTO AGREEMENT.

[02:30:02]