[I. CALL TO ORDER]
[00:00:07]
TURN OF BLUFFTON TWO FOR THE HOUSING COMMITTEE MEETING IS THURSDAY ITS SECOND 2022 AND MEETING IS NOW ON CALL TO ROLL CALL PLEASE. ALL RIGHT.
SO TALK TO ME, CHAIRMAN BRETT HILTON WITH GREENS EQUALS PRESENT DOESN'T MAKE JAMES POLITE AND GWEN CHAMBERS PRESIDENT DID YOU HEAR WE HAVE MICKIE JAMES IN FOR THE RECORD AT OH THREE IGNORE ME WHEN MY NAME IS WE HAVE A QUORUM SO WE CAN VOTE RIGHTY OKAY CAN I GET A MOTION TO ADOPT THE AGENDA PRESENTED SO THANK YOU ALL IN FAVOR I WAS ASSEMBLED AT
[III. ADOPTION OF MINUTES]
ADOPTION OF THE MINUTES FROM EMPLOYEE LEVEL A MOTION TO AGREE TO ADOPT THE MINUTES SO MOVED SO I CAN MAKE ALL IN FAVOR I AS UNANIMOUS I HAVE ALL BUSINESS NEW BUSINESS VICTORIA ALL RIGHT GOOD MORNING AND WELCOME TO THE MAIN CONVO FOR OUR MEMBER.[VI.1. FY2024 Neighborhood Assistance Program Budget Update]
OKAY NOT MUCH CHANGE BUT I AM GOING TO READ JUST FOR THE THE BUDGET FOR FISCAL YEAR 2024 NEIGHBORHOOD ASSISTANCE BUDGET WAS ADOPTED AT $290,000 AS OF FEBRUARY.THE UPDATED BUDGET IS $304,000 TO DATE 17 HOMES HAVE BEEN SERVICE OR HOME REPAIRS SUCH AS ROOFING AND INTERIOR REPAIRS TOTALING 259,000 402 23 HOMES HAVE BEEN SERVICE FROM SEPTIC PUMP OUTS TOTALING $8,357 AND TWO HOMES FOR TREE SERVICES TOTALING 6000 180 AS OF APRIL 25TH 2020 2442 HOMES HAVE BEEN SERVICE THE NEIGHBORHOOD ASSISTANCE PROGRAM.
COLLECTIVELY THE PROGRAM HAS A CURRENT BALANCE OF 15,061 AND I DO WANT TO UPDATE WE HAVE NOT DONE ANY HOME REPAIRS AND WE HAVE NOT DONE ANY TREE SERVICES.
SO THE ONLY LINE ITEM THAT IS MOVING IS OUR SEPTIC PUMP HOUSE BECAUSE SINCE OUR LAST MEETING WE DID DO SO. SO JUST TO GIVE THE UPDATE ON THAT AND THEN HERE IS OUR EXCEL SHEET THAT I FOR YOU GUYS. SO AGAIN NO MAJOR CHANGES JUST PUMP OUT AND AS YOU CAN SEE RIGHT NOW IS EMPTY PUMP OUT WE ARE HOLDING $243 AS YOU ALREADY KNOW EACH PUMP OUT COSTS US 400. SO IF WE DO HAVE ANY MORE WE WILL PULL FROM WITHIN BECAUSE COLLECTIVELY WE ARE STILL A LITTLE OVER $15,000 SO WE WON'T ANY YOU KNOW, WE DON'T HAVE TO PULL A GO RED FOR THE REMAINDER OF THE YEAR OR OVER TWO MONTHS NOW WE'RE ALMOST AT OUR NEW SLACK. SO ANY QUESTIONS THERE AND YOU'RE STILL HOLDING PEOPLE OVER FOR THE NEXT YES OF COURSE YES. I THINK I WAS IN AND OUT OF THE OFFICE YESTERDAY ON TUESDAY I GAVE OUT ABOUT ALLOCATIONS SO YES WE ONE OF OUR ONE OF MY EMPLOYEE MEMBERS IN THE OFFICE SAID YOU ARE ALREADY OUT MONEY FOR JULY AND JULY.
I HADN'T EVEN STARTED YET SO YES WE ARE THEY'RE GOOD NEWS . WE DID GET APPROVED FOR THE PROJECT THE HOUSING TRUST FUND REPAIR GRANT. WE DON'T KNOW HOW MUCH WE WERE APPROVED FOR BUT THERE IS AN INTERVIEW LINED UP WHERE OUR TOWN MANAGER DOES SPEAK TO THAT COMMITTEE, YOU KNOW, TO KIND OF TELL THEM ABOUT OUR PROGRAM SO WE CAN GET THOSE FUNDS AGAIN. WE DON'T KNOW WHAT WE WERE EARMARKED FOR BUT WE ARE IN THE RUNNING TO RECEIVE SOME FUNDS. SO THAT'S A PLUS AND WE ARE WORKING ON SOME OTHER THINGS ON THE BACK END CHARLOTTE AND ARE WORKING ON SOME OTHER THINGS ON THE BACK END TO PUT SOME MORE FUNDS IN OUR BUDGET FOR JULY SO WE'RE JUST YOU KNOW LOOKING AT SOME DIFFERENT GRANTS THAT'S OUT THERE FOR US AND SEE HOW MANY WE CAN APPLY FOR AS A NEIGHBORHOOD ASSISTANCE PROGRAM . SO WE ARE WORKING THERE. WE DID OUR THIRD SMOKE ALARMS YESTERDAY. WE PUT UP 24. WE VISITED ABOUT FIVE HOMES.
IT WAS A COUPLE THAT WE HAD TO BACKTRACK TO BUT WE DID DO 24 SMOKE ALARMS ALTOGETHER YESTERDAY SO THAT WAS AMAZING. IT'S ALWAYS A BIG THING. LIKE I SAID LAST MONTH ANYONE NEEDS IT. JUST LET ME KNOW, HAVE THEM CALL ME AND WE CAN GO OUT AS LONG AS IT'S IN BLUFFTON SERVICE AREA. SO THAT'S BEEN A GOOD PROGRAM THAT WE'VE WORKED UP TEAMED UP WITH WITH THE FIRE DEPARTMENT SO KUDOS THE FIRE DEPARTMENT FOR REACHING OUT TO US TO GET THAT DONE AND THINK OF ALL THE ANNOUNCEMENTS THAT I HAVE.
OH ONE SORT OF ATTENTIVE QUESTION IS BE THAT AREA OUT THERE UNIVERSITY PARK IS THAT
[00:05:01]
PART OF BLUFFTON. OKAY. GOING TO BLUFFTON PART OF IT IS COUNTY QUITE A OF JASPER COUNTY DEPENDS ON WHAT SIDE OF THE ROAD THERE ON.YEAH YEAH BUT THAT'S NOT PART OF OUR SERVICING AREA. NO NO, NO, NO.
ANY OTHER QUESTIONS? YES YOUR FIRST QUESTION I WOULD GIVEN GIVEN YOU KNOW COACH OF LAST WEEK LAST MONTH BUT I WANT YOU TO LOOK INTO INCENTIVIZING PRIVATE PROPERTIES OWNERS WHEN THEY WANT TO DO AFFORDABLE HOUSING WHAT WHAT WHAT WHAT ARE THE STEPS FOR US TO CHANGE IS THAT PROGRAM THAT GIVE THEM MORE I GUESS REASON TO SAY THIS IS WE WOULD CONSIDER WHETHER WE GO WITH OUR NEXT STEPS. YES, SIR MR. CHAIRMAN SO OUR NEXT STEP WOULD BE YOU COLLECTIVELY AS THE AFFORDABLE HOUSING COMMITTEE WOULD I'M GOING TO SAY RIGHT AS IN STAFF WOULD WRITE THIS BUT YOU WOULD REQUEST TOWN COUNCIL TO LOOK INTO ADDITIONAL INCENTIVE OPTIONS BEYOND WHAT WE CURRENTLY HAVE IN OUR EITHER IN THE UNIFIED DEVELOPMENT ORDINANCE OR THROUGH OUR ECONOMIC DEVELOPMENT INCENTIVE PACKAGE THAT HAS RECENTLY BEEN ADOPTED. WHAT THAT WOULD IS IT THEN THE BY YOU TELLING YOU TELL A TOWN COUNCIL COUNCIL TELLS THE TOWN MANAGER AND THE TOWN MANAGER THEN TELLS US TO LOOK INTO ALTERNATIVE OPTIONS. SO IF THAT IS SOMETHING THAT THE GROUP WOULD LIKE WHAT WE CAN DO IS KIND OF JUST MAKE THE STATEMENT RIGHT NOW AND YOU ARE AGREEING TO THAT AND THEN WHAT I WILL DO IS KIND OF A A MEMO TO THE TOWN MANAGER WHO THEN TAKES IT TO TOWN COUNCIL AND THEN KIND OF IT GOES UP AND BACK DOWN BACK DOWN.
SO JUST SO THAT WHEN WE HAVE THE DIRECTIVE FROM TOWN COUNCIL TO MOVE FORWARD WITH SOMETHING BEFORE WE START WORKING ON IT BEFORE ME THAT WAS FOR THE BOOK FOR THE COMMITTEE WOULD YOU PLEASE IF YOU CAN TELL THEM WHAT WE OFFERED THEM SO THEY CAN UNDERSTAND THIS MIGHT BE SOMETHING TO LOOK INTO. YES I'LL MAKE SURE TO INCLUDE THAT IN THE THE MEMO SO THAT WAY IT IS UNDERSTOOD WHAT'S OUT THERE NOW IN IN IN FROM WHAT I FROM MY EXPERIENCE AS A PRIVATE DEVELOPER A PRIVATE LANDOWNER THE ONLY REAL INCENTIVE WE OFFER RIGHT NOW IS WE CAN DOUBLE THE DENSITY OF THEM MAKE IT COMPLETELY AFFORDABLE AND LET'S USE THE SMALL NUMBER.
THIS IS ONE ACRE IN SOME PLACES LIKE MCCOLLUM'S AND THIS WILL GO THE ROAD IS FOR DWELLING PER ACRE SO IT'S A TIER IF LET'S JUST SAY THEY ONLY WANT TO DO 50% IN THEY DON'T THEN THEY CAN ONLY GET THERE FOR A WEEK OR WOULD BE THEN INSTEAD OF EIGHT FOR FOUR IT WOULD BE FOUR THEY CAN ONLY GET TWO ADDITIONAL SO WHAT THAT MEANS FOR US THAT WE OFFER ON DENSITY AND WE OFFER SOME FEE IN LIEU OF RATE THIS YEAR IN IN TODAY'S MARKET IN BLUFFTON THAT'S VERY CHALLENGING FOR SOMEONE SAY IS IT WORTH IT FOR ME TO BUILD AFFORDABLE HOMES CAN YOU ADD ANYTHING TO THAT? YOU'RE ONE AND ALSO YOU KNOW THE INCENTIVE PROGRAM THAT WE HAVE IN THE UNIFIED DEVELOPMENT ORDERS WAS CREATED IN 2015. OBVIOUSLY A LOT HAS CHANGED SINCE THEN. YES, I THINK THAT WOULD BE BENEFICIAL TO TO LOOK AT IT AGAIN ALSO WITH THAT PROBABLY ONE OF THE RECOMMENDATIONS THAT WE'LL HAVE THAT AS THIS MOVES FORWARD WE WILL THEN HAVE A WORKSHOP WITH TOWN WE CAN INVITE FOR A HOUSING COMMITTEE.
WE CAN REACH OUT TO COUPLE PRIVATE DEVELOPERS TO GET SOME INSIGHT FROM THEM AS.
WELL, AS WE'RE MOVING FORWARD WITH THIS NEW QUESTION BUT MORE OF JUST LIKE A DIRECTIVE, YOU KNOW, A DIRECTIVE TO US AND THEN WE'LL WORK ON THAT SO NOW NEXT QUESTION IS VICTORIA.
WE TALK LAST MONTH ALSO ABOUT GARBAGE BINS. YES.
SO I HAVE WELL ACTUALLY THEY REACHED TO ME CAPITAL SERVICE CMW CAPITAL SERVICE WASTE AND I BELIEVE WE ARE GOING TO TAG TEAM WITH THEM BECAUSE THEY DO NOT HAVE ENVIRONMENTAL FEES,
[00:10:01]
THEY DO NOT HAVE FUEL FEES, THEY DON'T HAVE ALL THOSE EXTRA FEES THAT THE OTHER AGENCIES HAVE. SO CAPITAL WASTE IS GOING TO BE WHO WE ROLL WITH IN JULY.YEAH THEY ROLLED THEY ACTUALLY WROTE TO ME LAST WEEK SO WE ARE GOING TO PARTNER WITH THEM.
YES. GOOD MORNING. FOR THE RECORD WE HAVE MR. NOLAN POLITE AT 1030 WELCOME AND. IF YOU GUYS DON'T HAVE ANYTHING
[VII.1. Coastal Community Development Corporation, Alan Wolf]
ELSE FOR ME I AM GOING TO PASS IT TO OUR PRESENTER FOR TODAY MR. ALLEN WAS DIRECTOR OF AGENDA. OKAY ALL CHAIRMAN OF THE BOARD FOR COASTAL COMMUNITY DEVELOPMENT CORPORATION SO IF YOU GUYS HAVE QUESTIONS FOR HIM I KNOW WE ASKED ABOUT THEM LAST WEEK NOT LAST WEEK BUT LAST MONTH SO LET'S LISTEN AND SEE WHAT WE CAN DO.YOU CHAIRMAN HAMILTON THANKS FOR HAVING ME UP HERE SO THANK WOULD LIKE TO SEE FOR THE RECORD THAT YOU WERE THE FIRST PERSON TO HEAR THIS CRAZY PITCH ONE AND A HALF YEARS AGO IN OCTOBER OF 2022 ALONG WITH DAN WOOD AND DAVID AMES AND WE'RE A YEAR AND A HALF DOWN THE ROAD SO WE'RE HAPPY TO REPORT ON THE PROGRESS AND THANKS FOR HELPING US GET THE TRAIN ON THE TRACKS.
AS WE SAID THAT DAY AND I WILL BREEZE ALONG PLEASE INTERRUPT IN ANY POINT WITH QUESTIONS BECAUSE I DON'T WANT TO TAKE TOO MUCH OF YOUR TIME SO LET'S JUST DOWN NOW I'M JUST SCROLLING IT'S ESSENTIALLY BECAUSE THE COMMUNITY DEVELOPMENT CORPORATION OUR IMPACT ON WHAT WE'RE TRYING TO DO IS PRESERVE AFFORDABLE WORKFORCE HOUSING THROUGHOUT THE LOWCOUNTRY AND THAT INCLUDES PEOPLE IN JASPER COUNTY AS OUR PRIMARY REGIONS THAT WE WANT TO SERVE AND OUR HOPE TO DO THIS WOULD BE IN THE MISSION STATEMENT THROUGH PRESERVATION THAT'S BY AN UNITS THAT ARE ALREADY FOR SALE WHEN THEY COME UP IN THE MARKET.
SECONDLY EXISTING PROPERTY AND THEN LASTLY DEVELOPING NEW PROPERTY TO MEET THE DEMAND OF OF THE WORKING FAMILIES AND RESIDENTS OF OUR COMMUNITIES WHY WE ARE DOING IT WE BELIEVE SOME OF THE WORK THAT COUNCILMAN HAMILTON AND I WERE INVOLVED WITH PRE-COVID REALLY LED US ON THE PATH OF UNDERSTANDING THIS, THE QUALITY LIFE ISSUE.
IT'S A QUALITY LIFE ISSUE BECAUSE LACK OF AFFORDABLE HOUSING LEADS TO POOR QUALITY OF SERVICES, AVAILABILITY OF SERVICES AND HIGH COSTS OF SERVICES ALL WHICH YOU KNOW ,NEGATIVELY IMPACT THE QUALITY OF LIFE OF OUR RESIDENTS. SO THAT'S EXACTLY WHY WE'RE DOING IT. WE TO HELP SOLVE THAT FOR THE LONG RUN.
THE COUNTY HOUSING NEEDS ASSESSMENT IF YOU'VE NOT TAKEN THE TIME TO PAGE THROUGH IT RIGHT AT THE TOP THERE FOR THE TOWN OF BLUFFTON WHERE THE PROJECTIONS OVER A FIVE AND TEN YEAR PERIOD OF RENTAL UNITS THAT WOULD NEED TO BE INTRODUCED TO MEET THE DEMANDS OF THE ASSESSMENT SO YOU CAN THAT WAS 1174 NEW UNITS WOULD NEED TO BE CREATED FOR THE TOWN OF BLUFFTON BY THE YEAR 2027. SO WE ARE NOW WHAT SEVEN YEARS THROUGH THAT TEN YEAR STUDY AND I'M NOT SURE EXACTLY PROGRESS BUT I DOUBT WE'VE COME UP WITH 1100 NEW UNITS AND MUCH WE REALIZE ON HILTON HEAD THE SHORT TERM RENTAL HAS ACTUALLY MORE INVENTORY OUT.
SO WE FEEL LIKE EVERY TIME Y'ALL CREATE A NEW AFFORDABLE UNIT IN PERPETUITY IF WE MORE THAN THAT OUT OF THE BOTTOM OF THE BUCKET TO THE RPO AND THE AIRBNB MARKET WE'VE ONLY GOTTEN THE BIGGER PROBLEM SOLVED. SO THIS IS A STRIKING NUMBER AND ULTIMATELY WE FEEL LIKE DEVELOPMENT ALONE PROBABLY CAN'T SOLVE THAT YOU KNOW WHAT'S THE DEMAND FOR ONE IN 1100 NEW UNITS IN THE TOWN OF AUSTIN ARE PROBABLY VERY, VERY LIMITED. WE THINK BUYING EXISTING HOMES WHEN THEY COME UP FOR SALE AND THEN LOCKING UP FOR THE LONG TERM IS A SOLID PIECE OF THE STRATEGY TO US TO SOLVE THE PROBLEM. SO HOW WE ARE DOING IT? WE HAVE GOTTEN OUR NONPROFIT IRA STATUS APPROVED AS OF LAST MAY SO ONE YEAR AGO AND OUR MISSION IS TO SERVE AREA MEDIAN INCOMES BETWEEN 50% AND 120%. SO THAT'S WHERE WE HAVE TO OPERATE BETWEEN.
WE ARE PLACING RESTRICTIONS ON THE PROPERTIES THAT WE PURCHASED FOR A 99 YEAR COMMITMENT WHICH WOULD TIE THEM TO THOSE ASSOCIATED AREA MEDIAN INCOMES.
WE HAVE AN APPLICATION PROCESS WHICH MAKES SURE THAT WE HAVE WORKERS WHO HAVE ACCESS TO THE HOUSING FIRST AND THAT'S BEEN BLESSED WITH THE FAIR HOUSING STANDARDS WE USED PASADENA, CALIFORNIA WHICH HAD A SIMILAR APPROACH AND WE WERE ABLE TO KIND OF START FROM THEIR MODEL AS WE BUILT THOSE PREFERENCES AND ESSENTIALLY A WORKER WHO WORKS BLUFFTON WOULD BE THE HIGHEST PRIORITY OF THE UNIT THAT WE OWN IS IN BLUFFTON AND TO THE EXTENT THAT NO WORKERS IN BLUFFTON HAVE THEN IT WOULD GO TO THE NEXT CLOSEST IN PROXIMITY AND IDEA THERE IS THAT WE MAKE SURE WE DON'T HAVE SOMEBODY FROM NEW YORK WHO'S WORKING REMOTE FOR A COMPANY IN NEW YORK BE ABLE TO GET ONE OF THESE UNITS BECAUSE THEY HAVE TO WORK FOR A LOCAL BUSINESS HERE IN BLUFFTON OR THE IN THE REGION THAT THE UNIT IS LOCATED TO THE EXTENT THAT THERE'S NO APPLICANTS THAT ARE WORKERS THAT ARE IN THE REGION HERE THEN YEAH, WE GO TO THE OPEN MARKET. WE BRANCH TO WHOEVER IT COULD BE WHETHER THEY'RE RETIREES YOUNG IN BETWEEN ANYWHERE BUT THAT'S HOW WE ENACT THE PREFERENCES AND OF COURSE WE
[00:15:02]
DON'T ALLOW ANY SHORT TERM RENTALS. WE WANT TO HELP FIGHT AGAINST THAT. THE CONCERN IS THAT THEY ARE A QUESTION THAT I GUESS THAT THAT OPTION THAT IF DIDN'T KNOW ONE APPLIED THEN IT GOES KIND OF LIKE THE OPEN MARKET BUT WE WOULDN'T BE DOING THIS IF WE DIDN'T THINK WE HAD IT IF WE HAD THAT AGREED TO PUTTING THEIR PUTTING THEIR CLAUSE IN THERE KIND OF TO STEER THE PROGRAM AS FAR AS WHY ARE WE REALLY DOING IT? I SHOULD CLARIFY IT NOT GO TO MARKET RENTS.THEY STILL ARE FIXED AT THE MARKET WHEN I ORDER LIMITED AM I.
YEAH BUT TO THE EXTENT THAT IT ENDS UP GOING TO A NON WORKER IS THAT WHAT YOU WERE SAYING.
YEAH UNDERSTOOD. I'LL WALK YOU THROUGH THE PREFERENCES HERE IN A MINUTE WITH A LITTLE MORE. I WOULD AGREE IF WE DON'T HAVE ENOUGH DEMAND TO FILL THE UNITS THAT WE'RE BUYING I'D BE SHOCKED. SO THE FACT THAT IT WOULD GET TO THAT WOULD BE SURPRISING AS PART OF OUR OUTREACH MISSION IS TO ENGAGE LOCAL EMPLOYERS ENGAGE ORGANIZATIONS LIKE YOUR OWN TO MAKE SURE WE START FILLING THE PIPELINE AS WE GET UNITS ONLINE. SO THE COST CURVE BENDING STRATEGIES THAT WE'VE EMPLOYED THERE IS A PROPERTY TAX ABATEMENT OPPORTUNITY IN STATE OF SOUTH CAROLINA IF YOU OWN FOUR UNITS THEY HAVE TO BE AT A PRESCRIBED LEVEL MRI YOU CAN HAVE ONE UNIT UP TO 50%.
YOU CAN HAVE TWO UNITS UP TO 80% OF MY AND ONE UNIT UP 120%. SO IF YOU HAVE FOUR UNITS THAT HIT THOSE PRESCRIPTIONS YOU THEN APPLY FOR A PROPERTY TAX ABATEMENT IN THE STATE OF SOUTH CAROLINA. ANY UNITS THAT WE OWN THAT ARE NOT WITHIN THOSE RANGES WOULD NOT QUALIFY FOR THE PROPERTY ABATEMENT. OH THE SECOND PART WHICH WE'VE BEEN MILDLY SO FAR IS TO SEEK ALTRUISTIC INVESTMENT AND WE'VE GONE OUT TO LONG COVE COMMUNITY ON HILTON HEAD WAS THE FIRST ONE. CARLTON RIVER WILL BE THE NEXT ONE WHERE WE COME TO HIGH NET WORTH INDIVIDUALS WHO LIVE BEHIND THE GATES AND WE SAY WOULD YOU ALL PROVIDE AT A 3% UNSECURED PROMISSORY NOTE RETURN TO OUR ORGANIZATION AS AN ALTERNATIVE TO GOING OUT TO THE HIGH COST FINANCING AND BY DOING THAT ALONG WITH COLLECTING DONATIONS WE CAN GREATLY BEND THE COST CURVE BECAUSE YOU KNOW RIGHT NOW WE'RE LOOKING AT RATES OF SEVEN AND A HALF TO 8% IF WE GO TO A BANK.
SO TO GET A 3% LOAN WOULD IS A HUGE COST FOR A VENDOR AND IN TERMS OF SAVINGS WE HAVE ALSO EXTENDED THAT SAME MODEL TO FOUNDATIONS LIKE THE COMMUNITY FOUNDATION OF THE LOWCOUNTRY BE ABLE TO SAY HEY WHY DON'T YOU CONSIDER MOVING PART OF YOUR INVESTMENT PORTFOLIO INTO A PROMISSORY NOTE TO THE CBK ALLOW US TO ALLOW TO EXPAND OUR REACH AGAIN THESE ARE UNSECURED SO THERE'S NO GUARANTEE TO ANY OF THESE FOLKS THAT THEY'RE GETTING A RETURN AND.
THEY'RE TAKING THAT RISK ALONG ON THEIR OWN BUT IT'S WORKED OUT.
WE RAISED POINT $1 MILLION LONG OF WHICH WAS A GREAT START AND WE'RE TO SEEK TO DO A SIMILAR THING TO DO WORK OUT HERE IN UNINCORPORATED IN BLUFFTON WHEN WE GET TO CARSON RIVER, THE OTHER AREAS OF COURSE WE'RE SEARCHING FOR GRANTS AND DONATIONS WHEN IF THEY ARE AVAILABLE. OUR PROGRAM MANAGER CARLY FRAZIER IS APPLYING FOR THOSE CURRENTLY AND THEN AT THE LOCAL, STATE AND FEDERAL LEVEL WE'VE ENGAGED THE SOUTH CAROLINA HOUSING DEPARTMENT. WE OF COURSE MET WITH DIRECTOR HUDSON INTRODUCE HIM TO THIS.
SENATOR DAVIS HAS BEEN A BIG OF HELPING US PUSH THIS AT THE STATE LEVEL.
WE WANT TO MAKE OURSELVES ACCESSIBLE TO THE FUNDS THAT ARE AS SAFE AS HOUSING AND WE'RE COMMITTED TO WORKING THROUGH ANY AVAILABLE OPPORTUNITIES AT THE STATE LEVEL. AND THEN OF COURSE WE'RE A NONPROFIT SO THAT WAS THERE'S NO DEVELOPER FEE TO BE ABLE TO RETURN. THERE'S NO PROFIT AND THAT'S HOW WE CAN DELIVER CHEAPER RENTS TO THE AS WE BUY A UNIT. CURRENTLY OUR APPROACH HAS TO LOOK FOR 40 TO 50% OF THE DOWN PAYMENT PRICE AND SAVE THE $300,000 UNIT THAT WE'D FIND 150,000 THROUGH THE DEBT INSTRUMENTS THAT I MENTIONED 3% ANNUAL RETURN OR GRANTS AND DONATIONS OF COURSE GRANT DONATION HELPS A TON IN DELIVERING A LOWER RENT TO THE MARKET AND THEN WE'D GO TO THE BANK AND FINANCE THE OTHER 50 TO 60%.
SO COASTAL STATE BANK IS THE FIRST THING THAT IS SIGNED UP TO OFFER A FIXED MORTGAGE AT A AT A CONSERVATIVE RATE IT'S STILL AT A SEVEN AND A QUARTER RATES HIGHER THAN WE WANT.
SO WE'RE SEEKING MORE BANK PARTNERS AND WE'RE HAPPY TO LEVERAGE MORE DONATIONS IF CAN GET THEM. BUT THAT'S ESSENTIALLY HOW WE'VE GONE ABOUT BUYING THE FIRST SEVEN YEARS THAT WE HAVE THE PROPERTY OWNERSHIP OF . THESE UNITS THAT WE PURCHASE IS BY THE COAST COMMUNITY DEVELOPMENT CORPORATION. WE DO PRIORITIZE SALE TO EXISTING RENTERS SO. WE HAVE AN AUDIT OUT TO OUR SEVEN RENTERS THAT WE HAVE IN OUR CURRENT UNITS AND FOUR OF THEM ARE INTERESTED IN BUYING HOMES THAT THEY LIVE IN.
SO TO THE EXTENT THAT WE CAN CONVERT THEM INTO A HOME OWNERSHIP POSITION THAT'S, FANTASTIC. IT ALSO RETURNS THE CAPITAL THAT WE HAVE TO WORK TO GO BUY ANOTHER UNIT AND THEN PRESERVE IT. THE KEY IS OF COURSE WE PUT A DEED RESTRICTION ON IN THE MEANTIME SO THAT PERSON IN THE BUYING THAT THEN IT'S GOING TO BE RESTRICTED TO AM I LEVEL FOR 99 YEARS AND THEN OF COURSE KNOW THAT GOING IN BUT THAT
[00:20:03]
WE'RE NOT TRYING TO CREATE AFFORDABLE INVENTORY ONLY TO WATCH IT DISAPPEAR AND THAT'S WHAT HAPPENED AND ASK AND IF YOU'RE NOT AWARE 1980S THEY PUT A 25 YEAR DEED RESTRICTIONS IN PLACE IN 2006 CAME ALONG IT DISAPPEARED AND IT WENT TO FULL MARKET THEY LOST INVENTORY SO WHAT WE WANT TO PRIORITIZE HOMEOWNERSHIP AND THE EQUITY IN THAT WE ALSO WANT TO MAKE SURE THAT WE DON'T UNDO OUR OUR SUCCESS AT THE SAME TIME I WILL MENTION JUST THE QUICKLY THE QUALIFICATIONS ONE PERSON THE HOUSEHOLD MUST WORK FULL TIME FOR A LOCAL BUSINESS THAT'S AVAILABLE REFERRING TO EARLIER TO TWO IN THE APPLICANT STACK AND 75% OF THE HOUSEHOLD INCOME MUST BE EARNED FROM A LOCAL BUSINESS. WE DIDN'T COME UP WITH THIS OURSELVES. RIGHT? WE WENT TO JACKSON, WYOMING AND REALIZED THAT THEY HAD COME UP WITH A GREAT DEFINITION FOR A LOCAL BUSINESS TO ENSURE THAT THEY DIDN'T HAVE PEOPLE WORKING AGAIN REMOTE FOR A COMPANY NEW YORK CITY AND LIVING IN THE BEAUTIFUL TOWN OF BLUFFTON. AND WE ALSO NOT ALLOW AN APPLICANT TO OWN RESIDENTIAL REAL ESTATE WITHIN 50 MILES OF OF THE UNIT BECAUSE WE DON'T WANT THEM TO GO HEY I CAN PAY A CHEAPER RENT AT A UNIT THAT COULD THEN RENT OUT MY PLACE AND THAT'S YOU KNOW THIS IS THIS IS NOT MEANT TO BE AN INVESTMENT STRATEGY ON THE RENTAL PREFERENCES.YOU CAN SEE THE FIRST ONE IS THE MAIN ONE AND THAT'S THAT ANY ANY PERSON WHO IS GOING TO BE YOUR HUSBAND PLACE IS THE TOP PRIORITY OF THE EXTENT THAT WE HAVE AN OPEN UNIT AND SOMEONE SAYS HEY I GOT AN EVICTION NOTICE AND I'M OUT IN 30 DAYS OR I HAVE JUST BEEN DISPLACED THERE IMMEDIATELY TO THE TOP OF THE PRIORITY LIST. THE SECOND ONE WOULD BE IF WE GO BACK TO CARBON RIVER AND WE SAY THAT WE CAN RAISE $1,000,000 THEIR COMMUNITY WOULD HAVE A PREFERENCE FOR THEIR IF THEY HELP US BY 12 UNITS SIX OF THOSE UNITS COULD GO AS A PREFERENCE TO CALL SOME OF OUR EMPLOYEES AND THEN THE OTHER SIX SERVE THE WIDER COMMUNITY AND THAT'S A WAY TO HELP ENGAGE THAT ALTRUISTIC CAPITAL THAT WE SEE IN COMMUNITIES ACROSS THE COUNTRY. YOU CAN SEE OUR WASH DOWN OF PREFERENCES THE THIRD PRIORITY IS GIVEN THE ELIGIBLE HOUSEHOLDS THAT RESIDE AND WORK AT A LOCAL BUSINESS.
SO AGAIN IN THE BLUFFTON EXAMPLE A UNIT THAT WE HAVE THAT'S AVAILABLE IF SOMEBODY LIVES IN BLUFFTON AND THEY WORK IN BLUFFTON, THEY'RE THE HIGHEST PRIORITY.
THE IS RATHER PEOPLE STAY WHERE THEY WORK AND THE COMMUNITY THEY WORK THAT'S THE PRIORITY THERE AND THEN THE NEXT ONE BE THAT THEY SIMPLY WORK A BUSINESS IN BLUFFTON AND THEN WE WASH DOWN TO A LITTLE GREATER REGION IF THERE'S NOBODY APPLYING IN THOSE EXAMPLES IF YOU'RE NOT AWARE IMAGES WERE JUST RELEASED FROM 2023 THEY WENT BACK DOWN IN COUNTY FROM $111,000 FOR A FAMILY OF FOUR LAST YEAR TO 106,000.
AND I WILL HIGHLIGHT WHERE THAT'S AT RIGHT HERE WITH MY CURSOR YOU CAN SEE THAT 100% OF AREA MEDIAN INCOME FOR A FAMILY OF FOUR IS $106,400. NOW AND THE WAY THAT THAT AFFECTS OUR RENT STRUCTURES IS YOU KNOW, THAT WE CANNOT CHARGE MORE THAN 30% OF INCOME CAN BE PAID TOWARDS RENTS. SO WHAT WE'VE DONE IS WE CALCULATED THAT IN THAT EXAMPLE A FAMILY OF FOUR AT 100% AREA MEDIAN INCOME COULD AFFORD A RENT OF $2,660 IN A TWO BEDROOM UNIT. BUT THEN WE OUT THEIR UTILITY COSTS AND YOU COME DOWN TO THIS 2448 SORRY MAX AND THEN USING THE SAME EXAMPLE OF 50% THE MAX RENT THAT A FAMILY OF FOUR OR HOUSEHOLD FOUR COULD PAY WOULD BE $1,179. SO YOU CAN SEE THE SPECTRUM THAT WE'RE TRYING TO SERVE IS IN THE FAMILY. FOR EXAMPLE $1,179 UP TO $2,980 IN HIGH END. SO THAT'S THE BAND THAT WE'RE TRYING TO SOLVE IS AND IF YOU GO UP TO A HOUSEHOLD OF ONE SAY YOU HAVE A STUDIO UNIT THE SAME MATH B YOU COULD HAVE A UNIT THAT COULD BE $799 UP TO 20 $100 AT THE HIGH END. I THINK THE GOING RATE THAT I'VE SEEN ON ON 170 NOW FOR ONE OF THOSE LITTLE APARTMENTS IS 20 $100 AND IT JUST WENT UP.
SO YOU CAN SEE THAT THEY'RE AT THE HIGHEST LEVEL AND OF COURSE WE WANT TO SOLVE IT ACROSS A WIDER ONE THING I WILL MENTION IS LET'S SAY THIS HOUSEHOLD OF TWO EXAMPLE HUNDRED AND $6,000 THAT'S NOT TO SAY THAT WE'RE SERVING WAGE EARNER THAT SERVES WHO MAKES 106,000 WE'RE SAYING A HOUSEHOLD THAT MAKES HUNDRED 6000 SO THAT COULD INCLUDE TWO WAGE EARNERS BOTH EARNING $53,000 THEY'D BE AT THE TOP EARNINGS OF TWO. SO THAT HOUSEHOLD INCOME IF YOU'VE GOT A ROOMMATE COUNTS AS HOUSEHOLD INCOME AND NOT MARRIED FAMILY DOESN'T HAVE ANY INCOMES INTO. THE HOUSEHOLD ADD UP AS YOU WORK INTO THOSE NUMBERS.
SO IT'S A IT MAY SOUND LIKE A LOT OF MONEY 106,000 AND WHEN YOU LOOK AT THE FACT THAT IT COULD BE MULTIPLE INCOMES IS NOT SO CRAZY SO IT'S A PRETTY QUICK BASED ON WHAT WE'VE ACCOMPLISHED SINCE WE GOT A NON PROFIT SERVICE LAST YEAR THE COMMUNITY FOUNDATION OF LOW COUNTRY US A MATCHING GRANT OF HUNDRED THOUSAND DOLLARS AS WE RAISE 125,000 PRIVATE DONATIONS LAST YEAR TO JUST OUR OPERATING ADMINISTRATIVE FUNDS IN PLACE FOR THE FIRST TWO
[00:25:02]
YEARS. SO WE'RE A YEAR INTO THAT WE HAVE PURCHASED SEVEN UNITS ON HILTON HEAD ISLAND. WE HAVE NAVIGATED WITH THE JASPER HOUSING TRUST THROUGH COUNTY COUNCIL GETTING A $600,000 GRANT AWARDED THAT WILL BE ADMINISTERED BY THE JASPER HOUSING TRUST SO THAT WE CAN WORK ON PURCHASING UNITS WITHIN OMNICORP RATED COUNTY.THE CAVEAT THERE IS THAT 600,000 WILL REPRESENT NO MORE THAN 20% OF THE PURCHASE PRICE.
SO WE STILL HAVE GO RAISE THE OTHER END PERCENT THROUGH OUR FUNDS THROUGH FINANCE IN DONATIONS AND THEN WE'VE ALSO GOTTEN A SIMILAR COMMITMENT FROM THE TOWN OF HILTON HEAD WHO'S PROVIDING OUT OF THEIR TAX BUDGET A $600,000 GRANT AND THAT WOULD BE THE SAME THING FOR UNITS ON HILTON HEAD. SO WE'VE WE'VE HAD SOME SUCCESS ON THE MUNICIPAL LEVEL YOU KNOW WHEN I STARTED PUTTING THESE NUMBERS TOGETHER AND SHARE THEM .
COUNCILMAN HAMILTON A YEAR AND A HALF AGO IT WAS PRETTY APPARENT AWAY OUR UNITS THAT WE ARE TARGETING PURCHASED A 200 TO $400000 AND THERE WASN'T A SINGLE ONE FOR SALE IN BLUFFTON. SO IT'S IT'S A CHALLENGE HERE IN BLUFFTON AND WE'LL TALK ABOUT SOME OTHER OPPORTUNITIES WE HAVE THAT MIGHT BE A GREAT FIT FOR YOU ALL.
BUT YOU KNOW, WE'RE GOING TO CONTINUE TO WORK THROUGH THE TO FIND THESE UNITS AND THEN LOCK THEM UP AND PRESERVE IT FOR THE LONG RUN. WE WELCOME CARLTON FRASER ABOUT SIX MONTHS AGO AS OUR PROGRAM MANAGER SHE HAS THE EXPERIENCE AS WELL AS MANAGEMENT EXPERIENCE SO WE'RE SELF-MANAGING FOR SEVEN UNITS THANKS TO HER EXPERTIZE THE FIRST THREE WE OUTSOURCE TO A LOCAL MANAGEMENT COMPANY ON HILTON HEAD AND WE WANT TO KEEP THAT BALANCE AS MANY AS SHE CAN SELF-MANAGE IT HELPS US SAVE ON THE RENTS BUT AT THE SAME TIME WE HAVE THE OPPORTUNITY TO OUTSOURCE THAT TO A THIRD PARTY.
THERE'S A LOOK AT ONE OF THE MARKET SIDES WE BOUGHT IT'S PRETTY SIMPLE A UNIT GOES UP FOR SALE LIKE THIS ON THE MLS IF WE CAN FIT IT IN OUR METRICS AND WE HAVE THE CAPITAL AVAILABLE THEN WE PUT AN OFFERING. WE DON'T WANT TO BID UP PRICES.
WE WANT PEOPLE WHO WANT TO BUY IN THEIR COMMUNITIES OF COURSE TO HAVE FIRST PRIORITY AND NOT BID UP ANY PRICES ON THE SEVEN TO WE BOUGHT YOU KNOW THAT WOULD THAT WOULD BE NOT THE BEST SOLUTION SO WE THINK WE STAND AS A VERY VALID CONSIDERATION FOR PARTNERSHIP FROM LOCAL ORGANIZATIONS MUNICIPALITIES BECAUSE WE PROVIDE AN IMMEDIATE PRESERVATION OPPORTUNITY DON'T TAKE 18 TO 24 MONTHS TO GET SHOVELS IN THE GROUND AND YOU'RE PERMITTED. THERE'S A UNIT FOR SALE WE CAN PURCHASE WE CAN GET TO MOVE MOVE IN RIGHT AWAY. WE THINK THE STRATEGY OF BUYING EXISTING HOMES THAT HAVE ALREADY MADE AN IMPACT ON THE INFRASTRUCTURE IN THE TOWN OF BLUFFTON ACROSS THE LOWCOUNTRY SUPPORTS GROWTH MANAGEMENT CONCERNS THAT OUR OUR REGION HAS OF COURSE THE COVENANTS OF 99 YEARS ARE STRONG WE WANT TO CONTINUE TO PRIORITIZE HOMEOWNERSHIP AND WE THINK IT'S REALLY A COMMUNITY SOLUTION IN THAT WE'VE GOTTEN GREAT RESIDENTS SUPPORT.
WE GOT A $500,000 DONATION FROM A WOMAN ON HILTON HEAD ISLAND ABOUT A MONTH AND A HALF AGO AND SHE SPENT HER TIME WORKING WITH HABITAT OVER THE YEARS AND SHE SAW JUST WHAT A BIG NEED THIS IS. SO YOU KNOW, WE'VE GOT RESIDENTS THERE AS WELL AS OUR ALTRUISTIC INVESTMENT. WE HAVE BUSINESSES MAKING GRANTS, THE COMMUNITY FOUNDATION AND OF COURSE THE TOWN OF BLUFFTON FOR IT WOULD BE A NICE THING TO ADD TO THE MIX. COUNCILMAN HAMILTON I WOULD LOVE TO HIT A COUPLE OPPORTUNITIES BUT MAYBE WE ANSWER ANY QUESTIONS FIRST. I THINK OPPORTUNITY IS BETTER.
OKAY, GREAT, GREAT. CERTAINLY YOU MENTIONED SOME BEFORE.
HOW DO YOU INCENTIVIZE PROPERTY OWNERS TO ADD THESE OF UNITS? WELL, THAT IS SOMEWHAT OF AN INFILL DEVELOPMENT. WE MET WITH HARDY GIL JUST THE OTHER DAY AS AN OPPORTUNITY THERE RIGHT TO THE EXTENT THAT YOU HAVE AN ACRE TWO ACRES WE'RE LOOKING AT SOLUTIONS WHERE WE CAN BRING A PRODUCT MARKET WHETHER IT BE A MODULAR PRODUCT.
SO I THINK THE TOWN OF BLUFFTON HAS AN EXPERIENCE OR A STICKBALL PROJECT WHERE IF WE CAN GET AROUND THESE IN PLACE THEY CAN COME AND BRING THE FUNDS TO BUILD THE UNIT AND MANAGE THE RENTAL OF THE UNIT. OBVIOUSLY IT WOULDN'T BE A RESALE OPPORTUNITY, IT WOULD BE ON SOME OF THESE LAND BUT WE THINK THAT INFILL OPPORTUNITY IS A HUGE OPPORTUNITY WHETHER IT'S IN THE TOWN OF BLUFFTON HILTON HEAD OR ANYWHERE THROUGHOUT THE LOWCOUNTRY.
SECOND THING I'LL MENTION IS THE OPPORTUNITY TO CATCH BEFORE A PROPERTY AN APARTMENT COMPLEX AS AN EXAMPLE FLIPS IN THE MARKET AND I'M GOING TO USE THE ENCLAVE WHICH IS ON BLUFFTON PARKWAY AS AN EXAMPLE. WE LOST OUR SERVER FRANKIE BONDS IN BLUFFTON.
SHE WAS AN 1800 DOLLARS A MONTH AND THEN WHEN IT FLIPPED A NEW OWNER WHICH WAS A REAL ESTATE INVESTMENT TRUST HER RENT WENT TO 20 $200 AND SHE MOVED BACK TO INDIANA.
SO WE'RE SHORT OF WORKER BECAUSE CAN HANDLE A $400 RENT INCREASE ON THEIR TWO BEDROOM UNIT. HAVE WE BEEN ABLE TO POSITION AS AN ORGANIZATION AS A CREDIT WORTHY ORGANIZATION OR WE LOVE TO HAVE BEEN THE ONES TO BE ABLE TO BUY THAT BEFORE REAL ESTATE INVESTMENT TRUSTS OUT OF YOU KNOW, A CITY FAR AWAY DID SO AND THAT'S ANOTHER WAY TO PRESERVE THE RENTS FOR OUR RESIDENTS SO IF YOU ALL EVER COME ACROSS THOSE OPPORTUNITIES BE IT A TOWNHOUSE, A MULTI-UNIT YOU KNOW, PLEASE CONSIDER LETTING US KNOW BANKS LOOK TO BE INVOLVED IN THOSE BECAUSE THEY'RE VERY BANKABLE AND SECURE.
SO WE'RE NOT AFRAID TO GO ASK FOR THE MONEY IF Y'ALL FIND THOSE OPPORTUNITIES.
[00:30:01]
THE TAX BILL THAT SENATOR DAVIS LED STATE AS TO 84 LAST YEAR WHICH ALLOWS ANY TAX FUNDS TO BE USED UP TO 15% OF YOUR TAX LIENS TOWARDS WORKFORCE HOUSING.WE'D LOVE TO BE A CANDIDATE IF YOU ALL DECIDE THAT YOU'RE GOING TO USE THOSE FUNDS FOR WORKFORCE HOUSING ENDEAVORS AND THEN LAND LEASES IF THE TOWN OF BLUFFTON IS LOOKING FOR A DEVELOPMENT PARTNER WHERE WE'RE PREPARING TO BE AN APPLICANT. SO IF YOU ARE PLANNING ON DOING LAND LEASES AND PROMOTE OUR FEES WE HAVE BUILDERS THAT ARE IN LINE ARE CERTIFIED TO PUT UP MODULAR HOMES AND SIX MONTHS WE FEEL LIKE THEY'RE VERY WELL BUILT AND WE CAN GET THEM DONE FAST AND THEY'RE VERY COST EFFECTIVE SO WE'RE HAPPY TO DO THAT AND I, I WILL HANDED OVER TO YOU CHAIRMAN HAMPTON FOR ANY QUESTIONS OR COMMENTS ALLEN IS VERY INTRIGUING AND INSPIRING PRESENTATION THANK YOU THIS. A YEAR AND A HALF AGO IT HAS REALLY BLOSSOMED THIS YEAR WHEN I FIRST SAT DOWN WITH YOU YOU WERE FOCUSED ON HELPING YOU REACH OUT TO JESSAMINE AND IN DIFFERENT COUNTIES THIS IS AN IMPROVEMENT FOR ME. ABSOLUTELY.
YOU PRESENCE ON THE BOARD MARY I'M SO HOW UNITS DO YOU HAVE HERE LIKE DO YOU HAVE ANYTHING HERE JUST A RANGE OF SEVEN UNITS ONE ONE BEDROOM HOMES AND WAS MAINLY JUST BECAUSE THAT'S WHERE THE FUNDRAISING STARTED THAT WE STARTED AND BECAUSE AGAIN THERE WAS NOTHING AFFORDABLE IN THE TOWN OF BLUFFTON BUT WE'VE GOT OUR EYE ON A LOT OF UNITS OUT HERE IN UNINCORPORATED COUNTY. YOU KNOW, THROUGHOUT THE CORRIDOR AROUND BLUFFTON THAT FIT OUR PRICE. SO YOU DO HAVE SOME THINGS Y'ALL ARE LOOKING AT IN BLUFFTON RIGHT NOW. WELL, AGAIN, WITHIN TOWN OF BLUFFTON LIMITS UNINCORPORATED. YES, ABSOLUTELY. 100%.
IN FACT, THE GRANT THAT WE HAVE RECEIVED TO THE COUNTY COUNCIL HAS TO BE SPENT IN UNINCORPORATED SO NOT BE USED ON HILTON HEAD ISLAND OR IN THE TOWN OF BEAUFORT.
IT BE ACTUALLY IN THE UNINCORPORATED AREA SO WE'VE GOT A LIST OF 36 PROPERTIES THAT WE'RE LOOKING AT CURRENTLY WE'RE TRYING TO REVISE IT DOWN TO 12 BECAUSE THAT $16,000 GRANT IS ESSENTIALLY ENOUGH TO HELP US GET 12 MORE UNITS BY US COMING UP WITH THE OTHER 80%.
SO WE'RE WE'RE GOING THROUGH THAT PROCESS AS WE SPEAK. HOW HOW WAS THE TIME WHAT DO YOU THINK THE TIME FRAME WOULD BE AND HOW PEOPLE GET THAT INFORMATION BECAUSE 12 UNITS WILL GO FAST. YEAH, IN MANY CASES ARE ALREADY OCCUPIED SO THE YOU KNOW THE SEVEN UNITS WE BOUGHT ONLY ONE WAS UNOCCUPIED TO BEGIN WITH. WE THINK THAT'S NOT THE WORST THING IF WE PRESERVE SOMEBODY'S HOUSING SITUATION CERTAINLY WE'RE NOT LOOKING TO DISPLACE ANYBODY BUT YOU'RE RIGHT IT MAY GO VERY FAST. WE EXPECT TO HAVE THEM ALL CLOSE BY OCTOBER BY THE END OF OCTOBER AND THAT THAT WOULD START IN TO BUY THOSE 12 UNITS IN THE UNINCORPORATED AREA HERE JULY 2025 YEAR OH YEAH. 24 OKAY.
OKAY. I THOUGHT YOU WAS IN OCTOBER THEN JULY.
OKAY. AND THE OTHER ONE IS CAN YOU KIND OF JUST EXPLAIN TO ME A BIT ABOUT IF SOMEBODY HAD LAND WHAT YOU ALL WOULD DO WITH THE LEASING PORTION OF THAT? OH THAT'S GREAT BECAUSE THEY YOU THE EXAMPLE THAT WE'RE WORKING THROUGH RIGHT NOW IS WE HAVE A MODULAR HOME DEVELOPER THAT'S A BEAUTIFUL SAVANNAH RIVER STYLE HOUSE FROM A COMPANY IN GREENVILLE THAT'S MAKING THESE THINGS YOU KNOW, THEY WORK 24 HOURS A DAY UP THERE IN A FIELD ENVIRONMENT AND WE GET THESE DELIVERED IN AUGUST THIS YEAR AND WE CAN HAVE THEM UP AND OPEN BY SEPTEMBER OCTOBER . SO THE RATES ON THOSE LET'S SAY IS $300,000 TO BUILD A TWO OR THREE BEDROOM HOUSE IN THIS EXAMPLE.
SO WE'RE LOOKING FOR PEOPLE ON HILTON HEAD AND BLUFFTON THAT ARE TO DOING THE LANDINGS IF THEY'VE GOT ACRE OF UNDEVELOPED LAND THAT COULD SUPPORT FOUR UNITS AS YOU MENTIONED BEFORE AND THEN WE'LL COME ALONG AND SAY GREAT WE'VE GOT THE FUNDING TO BRING THOSE FOUR UNITS $1.2 MILLION THROUGH OUR FUNDS AND WE'LL PROVIDE A LAND LEASE. THE EXAMPLE THAT I'VE BEEN GIVEN SO FAR ARE 1500 DOLLARS A MONTH. THAT IS LIKE A LAND NUMBER AND AS LONG AS WE CAN DELIVER THAT LAND LEASE AS WELL AS THE RENT AND AFFORD TO PAY OFF THAT $300,000 HOME ON THAT UNIT AND GOT A PARTNERSHIP WHERE WE COULD HAVE A 25 YEAR LAND IS THE PLACE WE MANAGE THE RENTAL SIDE OF IT AND THAT PERSON GETS A CHECK UP FOR THE LAND FORGIVE . ME IF I DON'T UNDERSTAND PARTS OF IT WHAT HAPPENS AFTER 25 YEARS? WELL WE WOULD LIKE A 25 YEAR EXTENSION RIGHT? OH OKAY. AND THEN I KNOW BUT BUT WHAT HAPPENS IF SOMETHING LIKE THAT IS NOT AFFORDED TO SOMEBODY THROUGH I WOULD THINK THAT THE LANDLORD HAS PREFERENCE BUT I DON'T KNOW IF THAT AUTOMATICALLY DEFAULTS THEIR PROPERTIES ON UNDER PROPERTY.
I'M NOT SURE I UNDERSTAND BUT I THINK THAT'S WHAT YOU'RE ASKING .
I THINK SO YEAH THE COVENANT RESTRICTION WOULD STILL BE 99 YEARS SO I SUPPOSE WE SHOULD PROBABLY RUN IN IN UNISON WITH THAT BUT THAT'S JUST SOMETHING THAT YOU HAVE TO IF YOU HAVE LAND JUST TO UNDERSTAND THAT WHAT HAPPENS IN THOSE SITUATIONS WITH PEOPLE WHO HAVE
[00:35:05]
LAND IS PROBABLY GOING TO BE A CASE BY CASE BASIS BECAUSE LET'S SAY IT WAS GOVERNMENT OWNED LAND AND MADE IT EASIER TO NEGOTIATE WHEN IT WAS PRIVATE ON LAND.I WANT I DON'T KNOW IF I WOULD GIVE UP 99 YEARS. YEAH THAT WOULD BE VERY YOU KNOW I'M A REALTOR AND I HAVE IF I HAVE SOMEONE WHO HAS BEEN TALKING ME ABOUT LEASING HER LAND FOR 99 YEARS JUST YOU KNOW, SO THAT THE FAMILY HAS THE IN THE IN IN PERPETUITY BUT SOMEONE ELSE HAS OFFERED HER $1,000,000 FOR THE LAND AND OF COURSE YOU KNOW, BEING THE REALTOR UNLIKE I THINK IF YOU TAKE THE MILLION DOLLARS BUT IT IS 6% OF THAT BUT THAT'S HER DESIRE. BUT I'M JUST WONDERING IS BENEFICIAL TO THE LAND OWNER HOW DOES THAT YOU KNOW BECAUSE THAT THAT SEEMS TO ME THAT WOULD BE TOUGH SELL BUT 99 YEARS THERE WELL NOT JUST ANY LAND LEASE SALE YOU KNOW THAT YOU'RE GOING TO BUILD A HOUSE ON BECAUSE ESSENTIALLY IT'S BEING A DEVELOPER ALL OF A SUDDEN THEY'RE TO FIND THEMSELVES AS A DEVELOPER BUT NOT HAVING IT IS ALMOST A JOINT VENTURE WHERE THEY'RE BRINGING THE EQUITY IN THE LAND AND THE DEVELOPER IS TAKING THE RISK ON THE VERTICAL AS WELL AS TAKING THE RISK ON LEASING IT BECAUSE THE DEVELOPER HAS TO PROVIDE A RENT CHECK EVERY MONTH REGARDLESS OF WHETHER IT'S A TENANT IN PLACE. SO IS A A PROFESSION TO SOME DEGREE FOR THAT LANDOWNER BUT IT'S ONE THAT WE CERTAINLY HAVE SEEN SUCCESSFUL.
RIGHT. IN OTHER EXAMPLES. OKAY.
OKAY. AND YOU SAID YOU HAD I DON'T KNOW HOW MANY UNITS IN IN THIS AREA ARE WE TALKING ABOUT STANDALONE HOUSES THAT ARE IN QUESTION? THANK YOU. THE UNITS ON HILTON HEAD ARE ALL IN ARE CONDOS LIKE EVERYTHING'S CONDO IN BLUFFTON WE'RE LOOKING FOR SOME OF THE TOWNHOMES THAT ARE AVAILABLE SOME OF CONDOS AND SINGLE FAMILY HOMES ESPECIALLY OUT IN THAT 170 CORRIDOR, THE BUCKWALTER CORRIDOR THAT ARE STILL WITHIN THE $400,000 RANGE.
WE'D LIKE TO HAVE THAT DIVERSITY OF OF OPTIONS AND THEN AS YOU GET OUT INTO BEAUFORT THERE IS EVEN MORE OPTIONS ON THE SINGLE FAMILY HOMES I KNOW AND I SHOULD MENTION WE WERE ABLE TO TALK TO THE GREENVILLE HOUSING FUND AS WE PUT THIS TOGETHER.
THEY WERE 15 YEARS AHEAD OF US. THEY HAD A $25 MILLION BALANCE SHEET AT THE TIME AND THEY'RE MOVING NOW FROM 1500 TO 3000 UNITS UNDER THEIR MANAGEMENT. NOW THERE'S A LOT OF APARTMENT COMPLEXES OF CONCENTRIC GROWTH AREA IN GREENVILLE BUT IT'S ALREADY BEEN DONE AS MY POINT IN SOUTH CAROLINA IN THE STATE AND OUR HOPE WAS IF A CHIMNEY COVE CRISIS CAME UP ON HILTON HEAD THAT'S WHAT SPURRED US TO ACTION WHEN IT CAME UP THAT WE'D HAVE THE SHEET AND BE BANKABLE TO BE ABLE TO STEP IN AND KEEP THAT FROM GETTING FLIPPED INTO A INTO A NEW CONDO DEVELOPMENT AND THE SAME WOULD APPLY THE ENCLAVE OR SOMEWHERE OUT HERE IN BLUFFTON.
SO PART OF OUR GOAL HERE IN THIS INITIAL PHASE AS WE HAVE SEVEN UNITS AND THEN 12 MORE AND 12 MORE IS TO BUILD OUR BALANCE SHEET SO THAT WE CAN GO TO MORE TRADITIONAL SOURCES OF FUNDING AND ALWAYS BE PASSING THAT AROUND. BUT WE'RE LOOKING FOR A START AND ANY HELP YOU CAN PROVIDE. WE APPRECIATE IT. SO I HAVE A QUESTION WITH THE 12 UNITS 36 BUT IT MIGHT CUT DOWN TO 12 IS WHAT YOU SAID SO AND UNINCORPORATED COUNTY 12 FOR THE 12 THAT'S OUT OF THE FIVE OR SIX THAT'S NOT HOW DO YOU GET THAT OUT TO THE PUBLIC STATING THAT THESE ARE AVAILABLE THROUGH TRADITIONAL MEANS SUCH AS SOCIAL MEDIA I GUESS YOU CALL THIS WE ALSO HAVE A BUSINESS LIST THAT WE'VE STARTED SORT OF TO COMMUNICATE OUT TO THE BUSINESSES SAYING HEY, WE'VE A UNIT AT 50% AMI OR 80% AMI AND THEY CAN HAVE PEOPLE APPLY THEM THROUGH OUR WEBSITE AND THEN WE HAVE A NUMBER OF APPLICANTS THAT APPLIED ALREADY BECAUSE THEY CAN REACH BACK OUT TO THE UNIT AS PRESCRIBED TO THEIR MEDIAN INCOME LEVEL. THESE INCLUDE CHURCHES IN BUSINESS LIST OR WE MIGHT DO THAT AS WELL AS OUTREACH FOR FUNDING AS WELL OR REPAIRS ETC. .
EXACTLY RIGHT. SO THE CHURCHES ARE A BIG OPPORTUNITY FOR US THAT.
WE'VE NOT ENGAGED BUT WE'RE HAPPY TO DO THAT. ON THE OUTREACH AND I KNOW I THINK THIS IS EXCITING IT'S JUST EXCITING TO HEAR THE PRESENTATION, THE WORK THAT YOU'VE DONE ALREADY WELL WITH SIX KIDS MY WIFE LOOKED AT ME TWO YEARS AGO AND SHE SAID, YOU KNOW, OUR KIDS ARE GOING TO BE ABLE TO AFFORD TO LIVE HERE. IT WAS LIKE A PUNCH IN THE NOSE TO GET BACK TO WORK. SO THAT'S I'M HAPPY TO SEE IT SOLVED PERSONALLY AND FOR ALL OF US FOR THE SAME REASON. YEAH. IT'S GOOD TO SEE CARLIE IS WITH YOU TOO. SHE'S SHE'S AWESOME. THANK YOU, CHAIRMAN.
LET ME JUST GIVE YOU GUYS A QUICK UPDATE ON. WE WERE TALKING ABOUT THAT
[00:40:05]
HOUSING IMPACT ANALYSIS AND MR. HAD MENTIONED THE 15% TAX FUNDING.SO FROM A PROCESS STANDPOINT WE ACTUALLY HAVE THAT GOING TO OUR PLANNING COMMISSION THIS MONTH FOR A PUBLIC HEARING AND A RECOMMENDATION AND THEN WE WILL BRING THIS IN FRONT OF TOWN COUNCIL FOR A FIRST READING IN JUNE AND THEN JUNE AND THEN A SECOND READING SECOND AND FINAL READING IN JULY. WE ANTICIPATE THAT THE ANNUAL AMOUNT THAT 15% IS APPROXIMATELY $150,000 OF TAX FUNDING THAT WOULD THEN BE AVAILABLE FOR WORKFORCE HOUSING. SO JUST A QUICK UPDATE. SO YOU GUYS KNOW THAT WE ARE MOVING FORWARD. WE ACTUALLY JUST FINISHED OUR THE FIRST DRAFT OF THE THE ANALYSIS SO WE'RE JUST FINE TUNING THAT RIGHT NOW AND WE'LL HAVE IT IN FRONT OF THE PLANNING COMMISSION THIS MONTH. SO THANK YOU. THANK YOU THANK YOU, MR. ALLEN FOR YOUR PRESENTATION. THANK YOU FOR YOUR TIME. WE DO HAVE ONE VISITOR BUT SHE IS FROM MADISON, NEW RIVERSIDE MS.. MORGAN YANDELL I HOPE SHE DOESN'T WANT TO SPEAK SHE DIDN'T BRING INTO THE MEETING SO SHE CAN KEEP UP TO DATE WITH HER MADISON APARTMENT AND AS YOU GUYS KNOW, WE HAVE 12 TO 10 WE HAVE TEN OVER THERE FOR WORKFORCE HOUSING. ALL RIGHT. IF YOU GUYS DON'T HAVE ANYTHING ELSE, THAT'S IT FOR ME. THANK YOU MADISON FOR COMING TO SOME MORGAN MORGAN WITH WILL MADISON. YES. YES.
AND ALAN, THANK YOU AGAIN AND I WANT TO SEE YOU BEFORE YOU LEAVE, OKAY OKA
* This transcript was compiled from uncorrected Closed Captioning.