Apr 25, 2024 Planning and Community Development Committee

[00:00:08]

>> ROCHA GARCIA: IT IS 10:00 A.M. AND WE WILL CALL THE PLANNING AND COMMUNITY DEVELOPMENT COMMITTEE TO ORDER. WE WILL START OFF WITH A ROLL CALL.

>> COUNCILMAN, I NEED TO SEE YOU. IF YOU COULD TURN YOUR CAMERA ON.

>> ROCHA GARCIA: THANK YOU SO MUCH, AND THANK YOU, EVERYONE, FOR BEING HERE AND WE HAVE A FEW ITEMS AND WE HAVE A LOT OF FOLKS SCHEDULED TO SPEAK AND WE APPRECIATE YOU ALL BEING HERE.

AND WE'LL TRY TO BE AS FAST AS WE CAN, SO THAT WE CAN GET YOU ALL OUT FOR LUNCH BECAUSE I KNOW THAT Y'ALL ARE ALL GOING TO MARKET SQUARE AFTER THIS. SO, LET'S START OFF WITH THE

[Approval of Minutes  ]

THERE'S A MOTION TO APPROVE. COUNCILWOMAN WILL YOU DO A SECOND.

>> SECOND. >> ROCHA GARCIA: ALL IN FAVOR PLEASE SAY AYE.

MOTION CARRIES. THANK YOU. AND THEN, UM, FOR THE BENEFIT OF PEOPLE WHO HAVE A REALLY SHORT ONE, CAN WE TAKE UP THE CONSENT ITEM, WHICH IS -- THE ORDINANCE

[Consent Agenda  ]

IS THERE ANY QUESTIONS? >> SO MOVED. >> ROCHA GARCIA: THERE'S A MOTION AND A SECOND. ALL IN FAVOR, PLEASE SAY AYE. OPPOSED? MOTION CARRIES. THANK YOU SO MUCH. AND LET THE RECORD REFLECT THAT COUNCILMAN COURAGE HAS ARRIVED. THANK YOU, COUNCILMAN. THAT'S OKAY, NO PROBLEM.

[Public Comment  ]

BIANCA MOLDANOVA. >> ITEM 3, SHORT-TERM RENTAL ORDINANCE.

I OWN AND OPERATE A SHORT-TERM RENTAL IN KING WILLIAM. WE APPROACHED THIS COMMITTEE LAST YEAR AFTER MR. SHANNON'S UPDATE ON STRS TO SEEK ASSISTANCE IN REVISING THE SHORT-TERM RENTAL ORDINANCE. OUR ASSOCIATION WAS FOUNDED IN RESPONSE TO THE ESCALATING CHALLENGES BROUGHT ABOUT BY UNPERMITTED SHORT-TERM RENTALS THAT EVADE THE HOTEL OCCUPANCY TAX. THIS ISSUE ISN'T JUST A CONCERN FOR US, IT'S A SHARED BURDEN ON OUR COMMUNITY. OUR NEIGHBORHOODS ARE FEELING THE STRAIN WITH OVERCROWDED AND OCCASIONALLY DISRUPTIVE PROPERTIES. PERMITTED SHORT TERM RENTALS HAVE AN UNFAIR PLAYING FIELD DUE TO THESE UNREGULATED RENTALS AND THE CITY HAS REVENUE LOSSES FROM UNCOLLECTED TAXES WHICH, COULD OTHERWISE BE INVESTED IN PUBLIC SERVICES.

IN COLLABORATION WITH THE TIER ONE NEIGHBORHOOD COALITION WE WORKED TO PROPOSE REVISIONS.

TODAY WE PRESENT THIS DRAFT FOR YOUR CONSIDERATION. I WANT TO HIGHLIGHT A UNIQUE ASPECT OF OUR JOURNEY. HOW OFTEN DOES THE CITY TASK FORCE FIND STRONG AGREEMENT ON AN ISSUE AND WORK COLLABORATIVELY TOWARDS A SOLUTION? WELL, WE DID IT. OUR PROPOSED REVISIONS AIM TO MAKE COMPLIANCE EASIER AND MORE TRANSPARENT, SHORT-TERM RENTALS WOULD BE REQUIRED TO PROMINENTLY DISPLAY THEIR PERMIT NUMBERS IN THEIR LISTINGS, PLATFORMS THAT ALREADY COLLECT STATE HOTEL TAX, REPRESENTING OVER 90% OF BOOKINGS WOULD COLLECT AND REMIT CITY, COUNTY HOTEL TAXES. THESE CHANGES SIMPLIFY THE COMPLIANCE AND LEVEL THE PLAYING FIELD. THE UPDATED ORDINANCE ADDS NEW ENFORCEMENT OPTIONS AND INTRODUCES POSTED QUIET HOURS. WE BELIEVE THAT THESE MEASURES WILL CONTRIBUTE TO BETTER LIVING CONDITIONS IN OUR NEIGHBORHOODS, BY ENFORCING THE DENSITY RESTRICTIONS WITH PERMIT COMPLIANCE AND ADDING TOOLS TO ADDRESS DISRUPTIVE HOUSES AND PARTY HOUSES MORE EFFECTIVELY. ADDITIONALLY TO ALIGN WITH THE TRUE COST OF MANAGING AND REGULATING SHORT-TERM RENTALS THE FEE WOULD TRIPLE. THE SUGGESTION IS NECESSARY TO ENSURE ADEQUATE FUNDING FOR OVERSIGHT AND ENFORCEMENT. WE GENUINELY APPRECIATE YOUR CONSIDERATION FOR THESE REFORMS AND HOPE TO EARN YOUR SUPPORT. TOGETHER WE CAN STRIKE A BALANCE THAT PRESERVES HOUSING IN NEIGHBORHOODS WHILE ENSURING RESPONSIBLE AND COMPLIANT SHORT-TERM RENTALS. I THANK YOU SO MUCH FOR YOUR TIME AND ATTENTION AND I THANK YOU TO MIKE SHANNON AND THE SDT FOR ALL OF THE HARD WORK THAT WENT INTO THIS.

AND VIVA FIESTA. >> ROCHA GARCIA: VIVA. THANK YOU.

AND BIANCA FOLLOWED BY RAY MOTES. MODALEZ.

>> GOOD MORNING, I'M HERE REPRESENTING THE TIER ONE NEIGHBORHOOD COALITION AND I HAD THE OPPORTUNITY TO SERVICE ON THE SDR TASK FORCE THIS GO AROUND AND THE INITIAL TASK

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THE TIER ONE SUPPORTS THE RECOMMENDATIONS FROM 20923 SHORT-TERM RENTAL TASK FORCE.

AS A COALITION OF NEIGHBORHOODS ACROSS SAN ANTONIO WE THANK THE CITY COUNCIL AND THE CITY STAFF FOR CONTINUING TO IMPROVE ITS PROCESSES AND ENSURING THE SDR ORDINANCE UPHOLDS ITS PURPOSE TO PROTECT THE INDIVIDUALS STAYING AT STRS AND TO PROTECT THE INTEGRITY OF NEIGHBORHOODS WHICH THEY OPERATE. THE SHORT-TERM RENTAL TASK FORCE IS A BALANCED REPRESENTATION OF INDIVIDUALS ACROSS THE CITY INCLUDING INDUSTRY REPRESENTATIVES, SHORT-TERM RENTAL OPERATORS AND OWNERS FOR TYPE ONES AND TWOS AND NEIGHBORHOOD LEADERS AND HOUSING ADVOCATES. PROPOSED CHANGES SEEK TO ENSURE THAT THE CITY HAS PROPER TOOLS TO INCREASE COMPLIANCE OF THE SHORT-TERM RENTAL OPERATING WITHIN ITS CITY.

ITS HOT TAX COLLECTION, AND TO ADDRESS PARTY AND NUISANCE STRS WITH THE COMPLIANCE NOTIFICATION OF QUIET HOURS AND CHANGES TO THE ADJUDICATION PROCESS.

WE BELIEVE THAT THE PROPOSED CHANGES WILL REFINE THE ORDINANCE BY ENSURING THAT THE PLATFORMS PROMOTING PERMITTED PERMITSTRS, AND IT IS FOR HISTOC PRESERVATION AND THE ARTS AND CONVENTION CENTER. WITH THE MAJORITY OF STRS IN DISTRICT ONE AND TWO WITHIN THE CONCENTRATED AREAS OF THE LAND MARKS, THE UNESCO WORLD HERITAGE SITES RECEIVING ALL OF THE HOT TAX IT IS ENTITLED TO AND INVESTING BACK INTO THESE AREAS OF OUR CITY. PLEASE SUPPORT THE RECOMMENDATIONS FROM THE STR TASK FORCE BY APPROVING THE PROPOSED CHANGES IN THE ORDINANCE.

AND I'D BE REMISS IF I DIDN'T TELL YOU HOW MONUMENTAL THIS ORDINANCE WILL BE.

I'M THANKFUL THAT THE PLATFORMS ARE JOINING THE CITY IN ALLOWING PEOPLE TO ADVERTISE ON THEIR WEBSITE WHEN THEY ARE PERMITTED WITH THE CITY. I'LL GIVE YOU AN EXAMPLE.

WE HAD AN UNPERMITTED ONE THAT TOOK 15 MONTHS TO TAKE IT DOWN OFF THE PLATFORM.

AND THOSE 15 MONTHS, DID THEY PAY THEIR HOT TAX? NO.

WERE THEY EXCEEDING THE DENSITY ON THE BLOCK FACE? YES.

WERE THEY A NUISANCE IN THE COMMUNITY? YES.

AND I'M THANKFUL FOR THE NEW COMPLIANCE MEETING THAT REALLY GIVES YOU, UM, GIVES DSD THAT ADDITIONAL TOOL OF ENFORCEMENT AND THEN THE 30 DAYS -- INSTEAD OF GOING TO AN ADMINISTRATIVE JUDGE AS OPPOSED TO WAITING SIX MONTHS FOR A MUNICIPAL COURT HEARING.

THOSE CHANGES ARE NEEDED. SO THANK YOU FOR ALL THAT YOU DO, AND YES, VIVA FIESTA.

>> ROCHA GARCIA: VIVA. AND FOLLOWED BY ERIN HANNAH. >> BUENOS DIOS.

I'M A MEMBER OF THE HISTORIC WEST SIDE ASSOCIATION AND I SERVED ON THE STR TASK FORCE AND I'M WITH AGENDA ITEM 3 ON SHORT-TERM RENTALS AND TO RECOMMEND THAT THE RENEWAL FEES PROPOSED BY THE STR TASK FORCE SHOULD BE SET HIGHER. $325 FOR TYPE TWOS AND $100 FOR TYPE ONES AND THIS IS BASED ON FEES WITH COMPARABLE CITIES. AND THE RECOVERY COSTS INCURRED BY SIMILAR TEXAS CITIES. THE NUMBER OF STRS WOULD INCREASE LOCALLY, DUE TO SEVERAL FACTORS SUCH AS THE HIGH RETURN ON THIS TYPE OF INVESTMENT, OUR ATTRACTIVE TOURIST DESTINATION AND SAN ANTONIO'S LOW PROPERTY VALUES. RESEARCH SHOWS THAT STRS -- DOES NOT IMPACT -- RESEARCH SHOS THAT THE GROWTH IN STRS DOES NOT JUST IMPACT THE MEDIAN HOME PRICE -- SORRY -- DOES NOT JUST IMPACT THE NUMBER OF HOUSING UNITS AVAILABLE BUT IMPACTS THE COST OF HOUSING. THERE'S BEEN A 39% INCREASE ON THE MEDIAN HOME PRICE FROM 2019-2022. AND THE U.S. CENSUS BUREAU, AND ALL OF THESE INCREASES CAN BE ATTRIBUTED TO THE GROWTH OF STRS, AND WE MUST BE PROACTIVE ABOUT PREVENTING THE HIGHER INVESTMENT, RETURN, EXACERBATING OUR HOUSING CRISIS IN THE FUTURE.

THERE'S A PROJECTED 400% TO 600% REVENUE GROWTH IN THE NEXT FIVE TO 10 YEARS.

BY THE WAY, WHY DO WE NOT CHARGE A HIGHER ENTRY AND YEARLY RENEWAL FEE MORE IN LINE WITH OTHER TEXAS CITIES. FRIENDS OF MINE WHO OWN STRS IN THE CITY AND OUTSIDE OF THE STATE AND THEY ARE THE GOOD OPERATORS WHO RETURN RENTAL DESPOTITS WITH LAST-MINUTE CANCELLATIONS ARE OF THE OPINION IF YOU CAN'T AFFORD $325 YEARLY FEE WHEN YOU MAKE $4,000 TO $5,000 A MONTH YOU SHOULD NOT BE OPERATING THIS BUSINESS. THE SHORT-TERM RENTAL AMENDMENT AS PROPOSED DOES NOT PROTECT OUR AFFORDABLE HOUSING STOCK IN SAN ANTONIO.

I'M ALSO HERE TO SPEAK ON AGENDA ITEM NUMBER 4, THE SOURCE OF INCOME PROTECTION FOR VETERANS.

THIS POLICY REPRESENTS AN OPPORTUNITY TO ENHANCE HOUSING AVAILABILITY FOR VETERANS.

ALLOWING THEM THE FREEDOM TO CHOOSE WHERE TO LIVE. ALLOWING THEM TO LIVE CLOSER TO

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IMAGINE HAVING THE ABILITY TO ACCESS DECENT HOUSING IN NEIGHBORHOODS OF YOUR CHOICE AND NOT BEING DENIED ON THE BASIS OF YOUR SOURCE OF INCOME, INCLUDING HOUSING VOUCHERS AND SOCIAL SECURITY. MANY LANDLORDS REFUSE TO ACCEPT VOUCHERS, OFTEN DUE TO MISCONCEPTIONS AND STEREOTYPES REGARDING PEOPLE WHO USE VOUCHERS.

BECAUSE OF LACK OF OPTIONS, VOUCHER HOLDERS, LIVE IN THE CITY'S LOWEST INCOME AREAS.

HELP TO SET A PRECEDENT FOR A BROADER AND MORE EQUITABLE HOUSING POLICY IN SAN ANTONIO.

THANK YOU FOR YOUR TIME AND VIVA FIESTA. >> ROCHA GARCIA: THANK YOU, VIVA. AND ERIN AND FOLLOWED BY KAREN FISHER.

IT'S HAHN, RIGHT? I'M SO SORRY. >> NO WORRIES.

GOOD MORNING, MY NAME IS ERIN HAHN, A RESIDENT OF DISTRICT 5 AND WITH TEXAS HOUSES, A NON-PROFIT THAT SUPPORTS AFFORDABLE HOUSING AND TENANTS' RIGHTS THROUGH RESEARCH AND POLICY AND ADIÓS CASE AND POWER BUILDING. I'M HERE ON SPEAK TO THE SHORT-TERM RENTAL ORDINANCE. I REPRESENT THE STR TASK FORCE AND FROM A HOUSING ADVOCATE PERSPECTIVE, WE APPRECIATE THE RECOMMENDATIONS THAT THE GROUP PUT FORWARD TO PROTECT THE INTEGRITY OF OUR NEIGHBORHOODS. HOWEVER, ONE AREA THAT WE DEVIATED FROM THE GROUP AND WE ENCOURAGE MORE DISCUSSION IS ON THE TOPIC OF PERMIT FEES. AT THE LAST STR TASK FORCE, RAY MORALES AND I AS TWO HOUSING ADVOCATES PRESENTED A PROPOSAL TO INCREASE PERMIT FEES BEYOND WHAT YOU WILL SEE PRESENTED HERE TODAY TO $325 PER YEAR FOR TYPE TWO OPERATORS AND TO KEY THE FEE FOR TYPE ONE OPERATORS AT $100 EYE YEAR WHICH IS ESSENTIALLY THE SAME COST WITH AN ANNUAL RENEWAL. WHEN COMPARED TO OTHER TEXAS CITIES SIMILAR IN SIZE, SAN SAN TOURISM PLAYS A ROLE IN THE ECONOMY, AND THE PERMIT FEES DRASTICALLY LOWER, AND MOST TEXAS CITIES CHARGE MORE THAN 2.5 TO EIGHT TIMES FOR AN STR THAN FOR SAN ANTONIO, AND REQUIRE AN ANNUAL RENEWAL. WE SUGGEST A HIGHER FEE FOR TYPE TWO OPERATORS IN PARTICULAR BECAUSE TYPE TWOS ARE THE VIOLATIONS AND THE CITY TAKES IN MORE RESOURCES.

SENDING CODE OFFICERS OUT TO INSPECT AND HEARING THESE CASES IN MUNICIPAL COURT.

WE DON'T WANT TO INHIBIT THE FAMILIES THAT USE THIS AS A TYPE ONE STR TO EARN EXTRA INCOME, BUT WE SHOULD BE WARY OF AN ENVIRONMENT THAT IS COMPARED TO OTHER TEXAS CITIES IS INEXPENSIVE AND LOW BARRIER FOR INDIVIDUALS AND CORPORATIONS TO COME IN AND BUY UP THE LIMITED HOUSING STOCK AND OPERATE BUSINESSES OUT OF OUR RESIDENTIAL NEIGHBORHOODS.

WE UNDERSTAND THAT THE PERMIT FEE HAS TO BE SET IN ACCORDANCE TO ISSUING PERMITS.

AFTER HEARING ABOUT THE EXPENSES THAT OTHER CITIES INCLUDE IN THEIR MODELS WE ENCOURAGE THE CITY TO DETERMINE IF PAYING FOR ENFORCEMENT ARE ACCOUNTED FOR IN THE COST RECOVERY MODEL.

TEXAS HOUSING WOULD APPRECIATE EUROPE CONSIDERATION TO $325 PER YEAR FOR TYPE TWOS AND $100 FOR TYPE ONES. IF THERE'S HESITATION TO DISTINGUISH BETWEEN THE TYPES OF OPERATORS WE SUGGEST A $250 PER YEAR FLAT FEE FOR BOTH TYPE ONES AND TYPE TWOS.

AND WE HAVE A ANNUAL RENEWAL THAN A THREE-YEAR RENEWAL THAT ALLOWS MORE OPPORTUNITY TO WEED OUT THE QUOTE/UNQUOTE BAD ACTORS. AND LASTLY I WOULD LIKE TO EXPRESS SUPPORT FOR A SOURCE OF INCOME PROTECTION FOR VETERANS TO NOT ONLY HELP TO EXPAND HOUSING FOR LOW-INCOME VETERANS BUT TO REMOVE THE UNJUST BARRIERS THAT VETERANS FACE IN THEIR EFFORTS TO SECURE SAFE AND DECENT HOUSING. THANK YOU FOR YOUR

CONSIDERATION. >> ROCHA GARCIA: THANK YOU. AND KAREN FISHER AND FOLLOWED BY

RAYMOND BALDWIN. >> KAREN FISHER AND I'M CUBAN-KOREAN DISABLED VETERAN.

I HAD THE HONOR TO SERVE MY COUNTRY IN THE AIR FORCE AND THEN LATER ON SERVING MY FELLOW VETERANS WHILE WORKING AT THE VA AND NOW I SERVE MY COMMUNITY AS A SMALL BUSINESS OWNER.

I'M HERE TO DISCUSS AGENDA ITEM NUMBER 4, THE SOURCE OF INCOME -- PROTECTION WITH VETERANS. I JUST WANT TO SAY THAT, YOU KNOW, WE -- ALL OF OUR VETERANS, EVERYONE DOES -- YOU KNOW, THIS IS A MILITARY CITY U.S.A. AND AS A VETERAN, I UNDERSTAND EVERYONE ON THE COMMITTEE AND THE COUNCIL WANTING TO HELP VETERANS. HOWEVER, THIS SHOULD BE A VOLUNTARY ACTION AND NOT FORCED -- EVER. THE PROBLEM WITH MANDATORY VOUCHERS LIKE VASH IS THAT THEIR ANCILLARY EFFECTS THAT AFFECT THE SMALL BUSINESS OWNERS LIKE ME. SO, FOR INSTANCE, MY SINGLE FAMILY -- YOU KNOW, THE HOUSES ARE GREAT FOR VETERANS -- IT'S AFFORDABLE AND IT'S $1,200 TO $1,600 BUT AFTER MY EXPENSES ARE PAID I ONLY A 200 DOLLARS A MONTH. AND THE VOUCHER IS A DELAYED PAYMENT ABOUT, 30-60 DAYS TO RECEIVE THOSE PAYMENTS. AND THEN, UM, IT HAS, UM -- AND THAT'S AFTER THE INSPECTION IS COMPLETED. SO IF I HOLD A SLOT FOR A

[00:15:04]

IT'S GOING TO PUT EVERYONE IN HARM'S WAY. AND MY FELLOW VETERANS AND I, WE SERVE THIS GREAT NATION SO THAT WE CAN CONTINUE TO HAVE OUR FREEDOM.

BUT NOW WHY DON'T I HAVE MY FREEDOM TO CHOOSE HOW TO RUN MY PRIVATE SMALL BUSINESS? AND WITH THE STROKE OF A PEN, PROMULGATING VOUCHER SYSTEMS, YOU'RE GOING TO TAKE EVERYTHING THAT I WORKED HARD FOR AND NOW I CAN NO LONGER HELP MY VETERANS IN THE FUTURE.

THANK YOU VERY MUCH. >> ROCHA GARCIA: THANK YOU, MS. FISHER.

RAYMOND BALDWIN FOLLOWED BY LEO LOE. >> HELLO, RYAN BALDWIN, RESIDENT FROM DISTRICT ONE, AND I'M CURRENT PRESIDENT FOR THE SAN ANTONIO APARTMENT ASSOCIATION.

AND I WOULD JUST LIKE TO READ A STATEMENT FROM OUR MEMBERSHIP. THE SAN ANTONIO APARTMENT ASSOCIATION REPRESENTS NEARLY 400 SUPPLIER PARTNERS AND OVER 242,000 RENTAL HOUSING UNITS IN THE CITY CITY OF SAN ANTONIO WH APARTMENTS IN ALL 10 CITY DISTRICTS.

THE ASSOCIATION IS DEEPLY COMMITTED TO SUPPORTING VETERANS AND IS IMMENSELY GRATEFUL FOR THEIR SERVICE. WE FIRMLY BELIEVE THAT EVERY VETERAN SHOULD HAVE ACCESS TO SAFE AND STABLE HOUSING. WE ARE PLEASED TO SEE THAT THERE ARE RESOURCES IN PLACE TO ASSIST VETERANS BASED ON CONVERSATIONS WITH OPPORTUNITY HOME, AND OTHERS, AND WE ARE CONFIDENT THAT THEY ARE RECEIVING THE NECESSARY SUPPORT TO BE SUCCESSFUL IN FINDING HOUSING.

ACCORDING TO DATA FROM OPPORTUNITY HOME, THE MAJORITY OF HOUSING VOUCHERS FOR VETERANS ARE BEING UTILIZED AND ARE LEASED UP. THIS DEMONSTRATES THE EFFECTIVENESS OF THE CURRENT SUPPORT SYSTEMS IN PLACE. MUCH LIKE THE SECTION 8 HOUSING CHOICE VOUCHER PROGRAM, THE VETERAN AFFAIRS SUPPORTIVE HOUSING PROGRAM IS MEANT TO BE VOLUNTARY. SEVERAL LARGE HOUSING PROVIDERS FOCUS SOLELY ON MANAGING COMPLEX PROCESS NEEDED TO JOIN THE VOUCHER PROGRAM. MANY OTHER PRIVATE OWNER/OPERATORS MAY WANT TO PARTICIPATE IN THE VASH PROGRAM, BUT SEVERAL OF THE PROGRAM REQUIREMENTS SERVE AS BARRIERS. LEGITIMATE BUSINESS CONCERNS LIKE THE COST AND FEASIBILITY OFTEN HINDER PARTICIPATION. OUR JOB IS TO ENSURE THE CITY HAS CLARITY ON WHY SOME PROPERTY OWNERS OUGHT NOT TO PARTICIPATE IN THE VOUCHER PROGRAM AND CONSISTENT UNIT INSPECTIONS AND THREE TO 12 MONTH DELAYS IN PAYMENTS AND CERTIFICATION AND OTHER REGULATORY PAPERWORK MAKE IT TOO EXPENSIVE FOR A SMALL PRIVATE OWNER TO RENT TO A VOUCHER HOLDER.

COORDINATING WITH THE LOCAL PUBLIC HOUSING AUTHORITY CAN BE A FULL-TIME COMMITMENT.

THERE ARE SIGNIFICANT BARRIERS TO HOUSING PROVIDERS. WE DO NOT FEEL THAT FURTHER REGULATION TO REQUIRE PRIVATE HOUSING PROVIDERS TO BE PART OF THE VOLUNTARY HOUSING CHOICE VOUCHER PROGRAMS ARE NECESSARY. INSTEAD, THE SAN ANTONIO APARTMENT ASSOCIATION ASKS THAT BEFORE THIS COMMITTEE TAKES ANY ACTION THAT DATA BE CAREFULLY EVALUATED TO DETERMINE IF POTENTIAL POLICY CHANGE TO THE VOUCHER PROGRAM CAN REMOVE BARRIERS FOR HOUSING PROVIDERS, INSTEAD OF ADDING TO THEM. WE STAND READY TO ASSIST AND COLLABORATE WITH ALL STAKEHOLDERS TO ENSURE THAT OUR VETERANS HAVE THE HOUSING THEY NEED AND DESERVE.

THANK YOU FOR YOUR TIME. >> ROCHA GARCIA: THANK YOU, RYAN.

LEO LOE, FOLLOWED BY MIKE RUST. >> GOOD MORNING, I'M LEO LEONE THAN OPERATES A 2146 COMMUNITY IN DISTRICT SIX. I HAVE BEEN IN THE INDUSTRY FOR 10 YEARS NOW AND I KNOW DOZENS OF SMALL OWNER/OPERATORS IN SAN ANTONIO. I FOR ONE AM WILLING TO TAKE HOUSING VOUCHERS, AND SINCE MY FATHER WAS A VETERAN, I WOULD ABSOLUTELY BE WILLING TO TAKE VASH VOUCHERS. SOURCE OF INCOME FOR THESE IS NOT A CONCERN FOR US.

WHAT IS A CONCERN IS THE LENGTH OF TIME IT TAKES FOR OPPORTUNITY TO HOME TO PROCESS THE REQUEST FOR TENANCY AUTHORIZATION AND THE SUBSEQUENT INSPECTION. BEFORE THE PANDEMIC, THE PROCESS USED TO TAKE ONE AND A HALF TO TWO WEEKS AND THEY'RE NOW UPWARDS TO TWO OR MORE MONTHS.

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THIS IS WHAT IS CAUSING THE ISSUE OF LANDLORDS NOT BEING WILLING TO ACCEPT THESE VOUCHERS. I AM A SMALL BUSINESS, WITH ME INCLUDED I HAVE A STAFF OF FIVE.

WHEN WE HAVE A UNIT THAT GOES VACANT FOR TWO, THREE OR FOUR MONTHS WAITING ON THE PROCESS TO COMPLETE, WE ARE LOSING THOUSANDS OF DOLLARS. AND IF WE HAVE MORE THAN ONE THAT WE ARE WAITING ON, THE LOSS JUST MULTIPLIES, MAKING IT DIFFICULT FOR US TO BE WAITING ON MORE THAN A COUPLE AT A TIME TO BE APPROVED. MY SUGGESTION TO YOU ON THIS ISSUE IS THIS -- VETERANS ARE ALREADY A PROTECTED CLASS UNDER CITY ORDINANCE.

WE DON'T NEED ADDITIONAL ORDINANCES. IF YOU WANT TO BE OF HELP IN GETTING LANDLORDS TO ACCEPT VASH VOUCHERS, EXPEDITE THE PROCESS. GIVE PRIORITY TO VETERANS, ESPECIALLY HOMELESS VETERANS, BY GIVING THEM A HIGHER PROCESSING PRIORITY.

I APPRECIATE THAT OPPORTUNITY HOME IS DOING EVERYTHING THAT THEY'RE DOING TO WORK WITH LANDLORDS AND WITH VOUCHERS AND IT'S VERY IMPORTANT TO CONTINUE TO BUILD A STEADY RELATIONSHIP BETWEEN THE SERVICES THAT THEY OFFER AND HOUSING PROVIDERS. WE'VE OPENED UP OUR COMMUNITY -- OUR COMMUNITY TO ACCEPTING VOUCHERS ALREADY. HELP US TO GET THEM PROCESSED EXPEDITIOUSLY SO THAT WE CAN AFFORD TO CONTINUE TAKING THEM. I THANK YOU FOR YOUR TIME.

>> ROCHA GARCIA: THANK YOU, LEO. MIKE RUST, FOLLOWED BY LACY HENDRIX.

>> I DIDN'T -- GOOD MORNING, MY NAME IS MIKE RUST. I'M WITH THE COMMERCIAL PROPERTIES HERE IN SAN ANTONIO AND WE HOUSE 1,600 LOW-INCOME SAN ANTONIOS IN UNSUBDISEIZED SINGLE FAMILY HOMES AND APARTMENTS. I AM HERE TO SPEAK ON THE STR AND THE ORDINANCE. AND I WAS ON THE TASK FORCE LIKE BIANCA IN 2018 TO CREATE THE SHORT-TERM RENTAL TASK FORCE AND THE ORDINANCE AND THEN AGAIN ON THIS TASK FORCE.

YOU KNOW, IT WAS A LOT OF CONTENTIOUS CONVERSATIONS IN THAT ROOM, BUT WE ALL WORKED TOGETHER. YOU KNOW, LED BY LOGAN AND DSD, AND KIND OF HERDING CATS WITH US IN THERE. AND WE CAME TO WHAT I THINK IS A GOOD SOLUTION THAT BALANCES PRESERVING NEIGHBORHOODS, SUPPORTING THE HOSPITALITY INDUSTRY AND PROTECTING THE RIGHTS OF PROPERTY OWNERS. WE HEARD THAT FEES, YOU KNOW, WHICH WE DID HAVE A PRETTY IN-DEPTH CONVERSATION ABOUT, WE HEARD THAT IS ABOUT COST RECOVERY.

IF YOU READ THE ARTICLE FROM "THE SAN ANTONIO REPORT," THE SAME PERSON WOULD TELL YOU THAT WAS ALL ABOUT BUILDING BARRIERS TO ENTRY WHICH I DON'T THINK IS A LEGITIMATE REASON TO CHANGE THE FEE STRUCTURE, RECOMMENDED BY THE TASK FORCE TO THE COMMITTEE.

SO I'D ASK YOU TO CONSIDER THE TASK FORCE AS IT'S BEEN RECOMMENDED TO YOU AND MAKE MINIMAL CHANGES OR AT LEAST SEND IT BACK TO THE TASK FORCE IF THERE ARE THINGS THAT YOU WOULD LIKE TO SEE DIFFERENT. WITH THE MANDATING THE HOUSING VOUCHER PROGRAMS, YOU KNOW, I DON'T THINK -- YOU HAVE HEARD FROM RYAN THAT IS A SOLUTION IN SEARCH OF A PROBLEM, RIGHT? SO BEYOND THAT, JUST I'D LIKE TO CHALLENGE THAT FOR YOU. IT'S NOT DISCRIMINATION, THE USE OF THE WORD "DISCRIMINATION" TRIES TO LIKEN TO DISCRIMINATION AGAINST PEOPLE BASED ON THEIR CHARACTERISTICS AND THAT IS WANT WHAT THIS IS. MY COMPANY WORKS WITH SAMMINISTRIES AND WITH HEALTHCARE SERVICES AND I HELPED TO CREATE A PROGRAM THAT HOUSES YOUTH AGING OUT OF FOSTER CARE, YOU KNOW, IN COORDINATION WITH A CHARITY, WHICH I'M A BOARD MEMBER. SO WE PARTICIPATE IN THESE THINGS AND WE CARE ABOUT, YOU KNOW, CITIZENS AND I HOUSE 1,700 FAMILIES, NOT ON PAPER -- YOU KNOW, WE ACTUALLY PROVIDE HOUSING TO THEM. GOOD QUALITY HOUSING WITH FREE WIFI AND LOW FEES AND REASONABLE RENTS. I STOPPED USING OPPORTUNITY HOME VOUCHERS TWO YEARS AGO AFTER HAVING DONE IT FOR A VERY LONG TIME BECAUSE IT'S NOT A RELIABLE PARTNER IN MY BUSINESS.

THE INSPECTION PROCESS IS UNPREDICTABLE AND INCONSISTENT. THE RENTS -- YOU KNOW, YOU'RE ASKED TO SIGN A BLANK LEASE AND THEY'RE GOING TO SEND IT BACK TO YOU WITH WHAT THE RENT IS AT SOME POINT IN THE FUTURE? AND THEY'LL CHANGE THE BALANCE BETWEEN WHAT THE RESIDENT PAYS AND WHAT YOU PAY AND NOT TELL YOU FOR MONTHS AT A TIME AND SO WE HAVE A RESIDENT WHO ALL OF A SUDDEN OWES US $600 AND NEITHER OF US KNEW IT AND IT'S A BURDEN TO THEM.

SO IT'S NOT A FUNCTIONAL PROGRAM THE WAY THAT IT'S RUN NOW. AND WE BEGGED TO BE IN A ROOM WITH OPPORTUNITY HOME TO HELP TO FIX THE PROBLEM AND ALL THEY DO IS PUT A WEBINAR ON AND TALK AT US. SO I WOULD ASK THAT BEFORE ANY ACTION IS CONTEMPLATED THAT MANDATES -- [BUZZER] -- THAT YOU GIVE US A CHANCE TO TALK ABOUT WHAT THE ISSUES ARE.

I AM A VETERAN AND I'M DEFINITELY NOT DISCRIMINATING AGAINST VETERANS SO THANK YOU

FOR YOUR TIME. >> ROCHA GARCIA: THANK YOU, MIKE.

LACY HENDRIX. LACY HENDRIX. ALL RIGHT.

[Briefing and Possible Action on  ]

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-- OH, -- >> I THINK THAT LACY PUT ME DOWN AND SHE WANTED ME TO SPEAK BUT

SHE PUT HER OWN NAME. >> ROCHA GARCIA: SORRY. WHAT IS YOUR NAME?

>> [INDISCERNIBLE] >> ROCHA GARCIA: IF MY COLLEAGUES ARE OKAY WITH IT I

WILL TAKE ONE MORE. OKAY. >> THANK YOU, MY NAME IS COURTNEY ROSEN AND I WOULD LIKE TO SPEAK ON REQUIRING US TO TAKE VOUCHERS FOR VETERANS.

AND I WOULD LIKE TO SAY I AM A PROUD MILITARY BRAT. MY DAD WAS 20 YEARS AIR FORCE AND I'M VERY FAMILIAR, VERY SYMPATHETIC. MY CONCERN IS NOT JUST WHETHER OR NOT WE'RE LOOKING AFTER VETERAN FAMILIES. IT IS IF WE'RE LOOKING AFTER ALL FAMILIES. SO RIGHT NOW -- I RUN A PROPERTY MANAGEMENT BUSINESS.

I HAVE A NUMBER OF EMPLOYEES. I RUN ABOUT 200 HOMES FOR -- 128 FAMILIES, RIGHT, OWNERS FOR THESE HOMES. AND ONE OF THE BIGGEST PROBLEMS WITH OPPORTUNITY HOME IS THAT IF I ACCEPT THEIR VOUCHERS, THEY HAVE THE RIGHT TO TAKE MONEY FOR AN ENTIRE YEAR WITH THE RENT THEY'VE GIVEN ME OUT OF MY ACCOUNTS. RIGHT? WHAT DOES THAT DO? THAT MEANS THAT I AM NOW COMINGLING, BECAUSE I DIDN'T HAVE A YEAR WORTH OF RENT FOR THAT HOUSE, WHAT I HAD IS MONEY FOR RENT FOR ALL OF THESE OTHER OWNERS AND MY NOW LICENSE IS IN JEOPARDY. SO MY AIN'T TO TAKE CARE OF THE 128 OTHER FAMILIES AND THE 200 HOMES AND THE 200 FAMILIES IN THOSE HOMES AND THE EMPLOYEES THAT ARE IN MY SERVICE -- ARE ALL JEOPARDIZED BECAUSE WE'RE TRYING TO CARVE OUT SOMETHING FOR ONE PARTICULAR TYPE OF FAMILY. MY QUESTION IS -- WHY AREN'T WE TRYING TO FIX THIS FOR ALL FAMILY? WHY ARE WE TRYING TO FIGURE OUT A WAY THAT ALL OF THE PROPERTY MANAGEMENT COMPANIES AND ALL OF THE LANDLORDS ARE JUMPING FOR JOY IN TRYING TO GET A VOUCHER. WHY AREN'T WE TRYING TO FLIP THE SCRIPT? BUT BY TRYING TO JUST PUT ONE GROUP IN AND SAY, LOOK WE HAVE A LITTLE LOOPHOLE AND WE'RE GOING TO TAKE CARE OF THESE ONE PEOPL- EQUALLY TAX PAYING CITIZENS AND PEOPLE WHO NEED HOMES AND PEOPLE WHO NEED THAT RENT TO PAY THEIR MORTGAGE, BECAUSE A LOT OF MY OWNERS, THEY'RE ALSO VETERANS.

THEY ARE ACTIVE-DUTY MILITARY, THEY ARE RETIRED, AND THEY ARE DEPENDING ON ME TO BE ABLE TO TAKE CARE OF THEIR INVESTMENT THAT THEY'RE COUNTING ON FOR THEIR FUTURE.

SO WE'RE GOING TO SACRIFICE MY ABILITY TO TAKE CARE OF OTHER VETERANS FOR A DIFFERENT SET OF VETERANS THAT HAVE NEEDS? WHAT I'D ASK JUST VERY CAREFULLY IS THAT OPPORTUNITY HOME REALLY LOOKS AT ITS POLICY AND REALLY TALKS TO THE LANDLORDS AND TO, YOU KNOW, HOMEOWNERS THAT USE THEIR POLICY, AND PROPERTY MANAGERS AND SAY, HEY, WHAT CHANGE S WOULD CAUSE YOU TO WANT TO TAKE OUR PROGRAM? BECAUSE I'LL TELL YOU -- IF YOU MADE THE PROGRAM OPPORTUNITY HOME A SOLID PROGRAM THAT DIDN'T HAVE THE INSPECTION PROBLEMS, THAT DIDN'T HAVE THE COMINGLING OF FUNDS AND JEOPARDIZING MY BUSINESS AND MY ABILITY TO FEED MY OWN FAMILY PROBLEMS AND NOT TO MENTION TAKING CARE OF THE OTHER PEOPLE, THAT DIDN'T HAVE THE PROBLEMS THAT YOU'RE NOT ABLE TO HOLD TENANTS ACCOUNTABLE AND PROTECT THE LANDLORDS, PEOPLE WOULD BE JUMPING FOR JOY AND TRYING TO GET ON THE PROGRAM.

SO MY QUESTION TO YOU AND MY REQUEST IS THAT INSTEAD OF TRYING TO CARVE OUT ONE EXCEPTION FOR ONE GROUP OF PEOPLE THAT JEOPARDIZES ALL OF THESE OTHER PEOPLE THAT HAVE INVESTED MONEY AND TIME AND NEED RESOURCES -- THAT WE ACTUALLY WORK TOGETHER.

AND I KNOW, UM -- [BUZZER] -- THAT WE ARE REALLY TRYING ON THE REALTOR SIDE, ON THE PROPERTY MANAGEMENT SIDE, WE WOULD SHOW UP IN SPADES IF YOU WOULD JUST ASK US.

>> ROCHA GARCIA: THANK YOU, COURTNEY. >> THANK YOU.

>> ROCHA GARCIA: WE'LL DO THE PRESENTATION TODAY. SO THE FLOOR IS YOURS.

THANK YOU. >> THANK YOU. GOOD MORNING, MADAM CHAIR, COUNCILMEMBERS. I AM AMIN TOMAZ, AND I'M EXCITED TO BE HERE TALK ABOUT THE PROACTIVE APARTMENT INSPECTION PROGRAM AND TO PROVIDE YOU WITH UPDATES.

SO THIS PROGRAM, AN ORDINANCE WAS CREATED TO HELP TO ENSURE THE SAFER LIVING CONDITIONS FOR OUR SAN ANTONIO APARTMENT RESIDENTS. IT DID START AND BEGIN ON APRIL 2ND, 2023. SO TECHNICALLY JUST A LITTLE BIT OVER A YEAR AGO NOW.

I DON'T WANT TO GO THROUGH THE TIMELINE AND ALL DETAILS, BUT AS EVERYBODY REMEMBERS, SUMMER 2022, WE HAD TWO APARTMENT COMPLEXES THAT HAD MEASURE ISSUES AND THAT'S WHAT CAUSED THIS TO BE CREATED. WE GOT DIRECTIONS FROM PCCD TO COME UP WITH A PROGRAM FAIRLY

[00:30:05]

SO BASICALLY HERE IS THE MAIN RESULTS OF OUR INSPECTIONS SINCE IT STARTED.

THE DATA HERE IS ACTUALLY UP TO APRIL 3RD, 2024, SO IT'S TECHNICALLY EXACTLY A YEAR.

SO WE DIDN' WANTED TO GIVE YOU T MORE. SO WE DID OVER 22,000 INSPECT JOBS IN A YEAR, SO THE TEAM DID REALLY AWESOME WORK. WE VISITED 1,321 APARTMENT COMPLEXES, AND WHAT THAT MEANS IS THAT IT'S NOT THE NUMBER OF BUILDINGS -- IT'S NOT THE NUMBER OF UNITS -- IT'S THE PHYSICAL ADDRESSES. SO YOU HAVE APARTMENTS WITH ONLY ONE BUILDING OR TWO AND SOME WITH 20. IT'S UNIQUE ADDRESSES THAT WE DID TOUCH WITH THOSE 22,000 INSPECTIONS. THROUGHOUT OUR INSPECTIONS, WE FOUND OVER 7,000 VIOLATIONS, SO WE ADDED FINES TO THOSE VIOLATIONS.

THE GREAT NEWS HERE IS THAT OVER 6,000 OF THOSE 7,000 VIOLATIONS -- THEY WERE CORRECTED WITHIN THE 10 DAYS ALLOWANCE THAT THEY HAVE. SO ACTUALLY IT'S GREAT, IT'S AMAZING. SO, OBVIOUSLY, THE BALANCE OF THAT IS 1,152 -- THOSE ARE THE ONES THAT DID NOT GET CORRECTED WITHIN THE TIMEFRAME AND THEY RECEIVED CITATIONS.

NOW REMEMBER ON THE PREVIOUS SLIDE I TALKED ABOUT THREE DESIGNATED CITATIONS OR WE CAN CALL IT THREE STRIKES IF WE WANT. OUT OF THOSE 1,152 CITATIONS, A LITTLE BIT OVER HALF, 622, THOSE WERE COUNTED TOWARDS THIS PROGRAM.

SO NOT EVERY CITATION COUNTS TOWARDS THE PROGRAM. BUT THOSE 622 CITATIONS THAT THEY WERE, UM, COUNTED TOWARDS THE PROGRAM -- BASICALLY LED TO 27 APARTMENT COMPLEXES TO BE IN THE PROGRAM. THEY WERE REQUIRED TO REGISTER IN THE PROGRAM.

THE GOOD NEWS IS THAT 24 OF THEM ARE STILL IN THE PROGRAM, BUT THREE OF THEM GRADUATED.

WHAT THAT MEANS IS THEY DID MEET ALL OF THE REQUIREMENTS AND THEY ARE ACTUALLY PERFECT LOCATIONS NOW AND THEY GOT OUT OF THE PROGRAM. WE WANT EVERYBODY TO GRADUATE.

SO HOPEFULLY WE GET THERE. SO PERCENTAGE-WISE, IF YOU LOOK AT IT, OUT OF THE 1,321 COMPLEXES ONLY 27 WERE REGISTERED. SO THAT'S TECHNICALLY ABOUT 2%.

SO 98% OF THE APARTMENTS ARE ACTUALLY DOING REALLY AWESOME WORK.

IF WE THINK ABOUT ANY BUSINESS, YOU ALWAYS HAVE 90% TO 5 95%, AD 98% ARE DOING REALLY AWESOME, SO I THINK THAT THE PROGRAM IS WORKING AND, YOU KNOW, WE ARE GETTING -- WE ARE GETTING OUR TENANTS AND RESIDENTS SAFER. I WANT TO THANK PCDC, BUT MAINLY THE MADAM CHAIR FOR YOUR INSTRUCTIONS. YOU TOLD US THAT YOU WANTED THE DATA THAT I JUST SHOWED YOU TO BE ONLINE AND SO WE ACTUALLY PUT IT ON A DASHBOARD AND IT'S ONLINE.

IT'S OPEN TO THE PUBLIC AND EVERYBODY HAS ACCESS TO IT. AND IT'S VERY INTERACTIVE, SO YOU CAN GO THERE AND CLICK ON IT AND PLAY WITH IT AND SEE WHAT YOU WANT, AND YOU CAN SPECIFICALLY LOOK AT THE DATA FOR CERTAIN TIMEFRAME, FOR A DAY, FOR A WEEK, A MONTH, WHATEVER TIMEFRAME THAT YOU WANT. YOU CAN CLICK ON CERTAIN COUNCIL DISTRICTS TO SEE WHAT APARTMENTS THEY HAVE INSPECTIONS AT. ON THE BOTTOM CORNER, THE 27 -- AGAIN, THOSE ARE THE 27 APARTMENT COMPLEXES THAT THEY WERE REQUIRED TO REGISTER.

AND IF YOU CLICK ON THAT IT GIVES YOU THAT LIST -- IT WILL GIVE YOU A LIST OF 24 THAT ARE IN THE PROGRAM TODAY AND GIVE YOU THE 3 THAT GRADUATED. AND JUST, AGAIN, ADDITIONAL INFORMATION -- AGAIN, I DON'T HAVE IT HERE -- BUT SINCE WE PUT THIS PRESENTATION TOGETHER UNTIL TODAY I SIGNED ONE OF THE LETTERS ACTUALLY FOR ONE OF THE APARTMENTS TO GRADUATE SO TECHNICALLY WE'LL HAVE FOUR THAT GRADUATED. SO, ALL RIGHT -- SO, WHAT ARE THE TOP VIOLATIONS? I CALL IT THE TOP 10, JUST SO THAT EVERYBODY KNOWS.

[00:35:01]

INTERIOR SURFACES, ABOUT 11%. WATER, HEATING FACILITIES ABOUT 8%, AND THEN YOU CONTINUE.

BUT TECHNICALLY THE TOP THREE -- THEY EQUATE TO OVER 30% OF THE VIOLATIONS.

SO IF THOSE ARE CORRECTED, WE ARE GOING TO SEE A LOT BETTER RESULTS.

BUT AS I SAID, WE'RE AT 98% RESULTS ALREADY. I'M GOING TO TALK ABOUT A COUPLE OF SUCCESS STORIES. AS I MENTIONED, WE HAVE THREE PROPERTIES THAT THEY GRADUATED FROM THE PROGRAM. SO WE KIND OF PICKED TWO. ONE OF THE SMALLER ONES AND ONE OF THE BIGGER ONES, JUST TO SHOW YOU WHAT HAPPENED. SO DENMARK PLACE IS 22 UNITS AND IT WAS THE FIRST APARTMENT COMPLEX THAT GOT IN THE PROGRAM. AND THE GOOD NEWS IS THAT THEY WERE THE FIRST ONE TO GET OUT OF THE PROGRAM. AGAIN, VIOLATIONS THAT WE FOUND THERE IS SIMILAR TO THE TOP 10 THAT I MENTIONED -- PLUMBING AND BREAKS AND NO WATERS AND THINGS LIKE THAT, AND STAIRWAY ISSUES AND HANDRAILS. BUT REALLY THE ACTION THAT HAPPENED HERE IS THE OWNER INSPECTED THE PROPERTY WITH US WITH CODE ENFORCEMENT TO UNDERSTAND WHAT THOSE VIOLATIONS ARE. AND THEN HIRED AN ENGINEER AND A CONTRACTOR TO REHAB THE PLACE. THEY STARTED REHABBING THE EXTERIOR OF THE PROPERTY, AND THEN ANY VACANT UNIT AND THEY THEN COMPLETED THE JOB AND, AGAIN, IT'S A GREAT RESULT BASICALLY. AND THE SECOND ONE IS OAK MEADOW.

THE REASON WHY I'M SHOWING THIS, THIS IS 220 UNITS. SO DON'T TELL ME THAT I ONLY SHOWED YOU A SMALL APARTMENT COMPLEX THAT REALLY MANAGED TO GET OUT.

SO THERE'S ANOTHER ONE HERE. AND THIS ONE THEY HAVE A LOT OF ACTUALLY MEASURE ISSUES WITH SEWER LINES AND THIS PICTURE ACTUALLY -- THIS IS ONE OF THE PICTURES WE HAD THERE.

AND, AGAIN, THE SAME THING -- WHAT THEY DID IS THEY ARE MORE REGIONAL SO THEY HAVE THE FRONT APARTMENT COMPLEXES IN SAN ANTONIO AND OUTSIDE OF SAN ANTONIO.

SO THE REGIONAL AND THE LOCAL CAME TO MEET US WITH AND INSPECTED THE PROPERTY AND UNDERSTOOD WHAT THE ISSUES ARE AND HIRED CONTRACTORS AND FIXED THE EXTERIOR ISSUES AND THE PLUMBING ISSUES. LUCKILY AS I MENTIONED, BECAUSE THEY HAVE OTHER LOCATIONS THEY BORROWED THEIR MAINTENANCE PEOPLE FROM THE OTHER LOCATIONS TO HELP AND TO FIX THIS.

SO THEY HAD THAT RESOURCE AVAILABLE. EVERY MONTH WHEN WE DO INSPECTIONS THERE, THEY HAD MAINTENANCE PEOPLE ON STAND-BY, SO IF WE FIND ANYTHING, THEY JUMP ON IT AND THEY FIX IT IMMEDIATELY. SO, AGAIN, THAT'S WHAT REALLY GOT THEM OUT OF THE PROGRAM TECHNICALLY SO. AGAIN, ANOTHER GREAT EXAMPLE.

THIS PROPERTY -- THIS IS STILL IN THE PROGRAM, SO IT DIDN'T GRADUATE YET.

BUT I BELIEVE THAT IT IS A SUCCESS STORY AS WELL. ALTHOUGH THEY ARE STILL IN THE PROGRAM. SO THEY GOT IN THE PROGRAM IN JULY 2023.

AND, UNFORTUNATELY, ONE OF THE MAJOR ISSUES THEY HAD IS STAIRS. AND THEN IN AUGUST 2023, ONE OF THE STAIR LANDINGS COLLAPSED AND ONE OF THE TENANTS GOT INJURED. LUCKILY IT WASN'T MAJOR.

BUT THANKS TO COUNCILMAN PELAEZ AND HIS OFFICE AND THE NEIGHBORHOOD HOUSING SERVICES, WE PARTNERED WITH THEM AND WE DID FIVE ON-SITE MEETINGS. WE PHYSICALLY MET WITH ALL OF THE RESIDENTS ON SITE FIVE TIMES BETWEEN NOVEMBER AND DECEMBER 2023.

FOR TWO REASONS. ONE IS TO PROVIDE THEM ASSISTANCE IF THEY NEED ASSISTANCE. TWO, TO KIND OF KEEP THEM UPDATED TO UNDERSTAND THE PROCESS AND TO UNDERSTAND WHAT'S GOING ON. AND ACTUALLY THAT -- THAT APARTMENT COMPLEX HAD A LOT OF RESIDENTS WHO DON'T SPEAK ENGLISH, SO WE HAD ACTUALLY THE COMPANY THAT DOES THE INTERPRETATION -- SO WE HAD LIKE FIVE DIFFERENT LANGUAGES THERE.

SO, AGAIN, I BELIEVE THAT IT WAS A GREAT PROCESS. AGAIN, THE GOOD NEWS IS THAT ALL OF THE STAIRS ARE 100% COMPLETE AND THEY WERE DONE BY JANUARY. THEY STILL HAVE OTHER ISSUES THAT THEY ARE WORKING ON. THEY FIXED A FEW FOUNDATION ISSUES BUT THEY STILL HAVE A COUPLE MORE TO GO, AND BALCONY ISSUES AND EXTERIOR ISSUES BUT, AGAIN, IT'S NOT COMPARED TO WHAT WE SAW IT, YOU KNOW, LESS THAN A YEAR AGO. SO, AGAIN, WE'LL KEEP YOU POSTED ON THIS ONE. FINANCIAL IMPACT -- TODAY WE HAVE FIVE POSITIONS, ONE SUPERVISOR AND FOUR CODE OFFICERS. AGAIN, WE BUDGETED THIS, OR OUR ESTIMATE BUDGET WAS $383,024, AND $324,025. AND THE REASON THAT IT WAS HIGHER AT THE BEGINNING IS WHEN WE GET CODE OFFICERS WE NEED VEHICLES AND COMPUTERS AND THINGS LIKE THAT. SO THAT'S THE INITIAL COST UP UPFRONT.

SO IT'S $100 PER UNIT ANNUALLY FOR ANY APARTMENT COMPLEX THAT GETS INTO THE PROGRAM.

WE INVOICE 27 COMPLEXES SO FAR -- AND THE AVERAGE PER APARTMENT COMPLEX IS 195 UNITS AND JUST REAL QUICK -- WHEN WE WERE DOING THE TECHNICAL --

[00:40:02]

WE'RE GOING TO WORK DURING THE BUDGET PROCESS TO SEE AND MAKE SURE THAT WE HAVE APPROPRIATE RESOURCES TO CONTINUE THIS -- THIS GREAT PROGRAM. AND BASICALLY WE DON'T HAVE ANY MAJOR CHANGES, OR ANY CHANGES, ACTUALLY, AT THIS TIME. WE BELIEVE THAT THIS PROGRAM IS WORKING REALLY WELL AND WE -- AGAIN, I'M REALLY EXCITED ABOUT THIS PROGRAM.

SO THAT'S IT, AND I'M HERE TO ANSWER ANY QUESTIONS. >> ROCHA GARCIA: THANK YOU.

THIS IS A GREAT PRESENTATION. I WAS SO EXCITED ABOUT IT THIS MORNING.

IT SOUNDS LIKE IT'S WORKING AND I LOVE GRADUATION. [LAUGHTER] SO, YES, LET'S GET MORE PEOPLE GRADUATING. I TALKED A LITTLE BIT ABOUT THE DASHBOARD AND THE GREAT WORK THAT YOU ARE ALL DOING. I WAS SPEAKING AT A CONFERENCE IN ARIZONA A COUPLE OF DAYS AGO AT MALEO, AND I SAID AT THE TIMS THAT I'M VERY, VERY LUCKY BECAUSE I HAVE GREAT COLLEAGUES AND OUR CITY STAFF IS REALLY, UM, TRYING TO MAKE SURE THAT EVERY RESIDENT IS REPRESENTED IN CITY HALL. THIS IS ONE OF THOSE PROGRAMS THAT I FEEL LIKE FOR THOSE WHO HAVE LOST HOPE BEFORE IN WHAT HAPPENS IN THEIR LOCAL GOVERNMENT, WE'RE TRYING TO SLOWLY GAIN IT BACK. AND YOU ARE ALL A BIG PART OF IT. SO THANK YOU ALL SO MUCH FOR MOVING SO QUICKLY ON ALL OF THIS. AND I DO WANT TO RECOGNIZE THAT 98% OF THE APARTMENT COMPLEXES THAT ARE DOING A GREAT JOB -- LIKE, THAT'S EXACTLY WHAT WE WANT TO BOAST ABOUT IN SAN ANTONIO, RIGHT? THERE'S NO DOUBT THAT THERE'S GOING TO BE BAD ACTORS.

BUT THE POINT BEING THAT -- THAT 98% IS GOING TO HELP US MAKE SURE THAT THE REST GET UP TO CODE, RIGHT, AND MAKE SURE THAT THEY'RE ALL TAKING CARE OF THEIR RESIDENTS.

AND GIVE THEM WHAT THEY DESERVE. SO I JUST WANT TO SAY THAT I'M SUPER HAPPY -- IF YOU COULDN'T TELL, RIGHT -- THAT THE PROGRAM IS WORKING. AND THAT OUR RESIDENTS HAVE A DECENT PLACE TO LIVE AND A SAFE PLACE TO LIVE. AND SO, I'M HAPPY THAT YOU REFERENCED ALSO, UM, THE APARTMENT COMPLEX IN DISTRICT 8, BECAUSE I FEEL LIKE THAT WAS ONE OF THE FIRST TASKS FOR YOU ALL, RIGHT? LIKE, OKAY -- SO THIS IS THE EXAMPLE OF WHAT WE WANT TO FIX. AND SO THE MINUTE THAT WE HEARD ABOUT IT, WE GOT THE TEAM ON IT, AND SO HAPPY THAT THERE'S SO MUCH GREAT PROGRESS. WE HAVE GREAT NEIGHBORS.

AND I FEEL LIKE WE WANT EVERYBODY TO -- TO HAVE A SAFE PLACE TO CALL HOME.

I ALSO WANT TO THANK THE RESIDENTS WHO CAME TO THE MEETINGS AND THE RESIDENTS WHO, UM, ARE HERE TODAY AS WELL. I'M GLAD THAT YOU ARE ALL HERE. IT'S NOT EASY TO COME TO MEETINGS DOWNTOWN, ESPECIALLY DURING FIESTA AND SOME OF THE MORE CROWDED TIMES SO THIS TOOK QUITE A WHILE FOR YOU TO COMPLETE, SO EVEN DURING THE CONSTRUCTION TIMES DOWNTOWN -- I APOLOGIZE FOR YOU ALL HAVING TO WALK EXTRA, BECAUSE YOU HAD TO PARK FAR AWAY SOMETIMES.

BUT THANK YOU FOR THAT. AND I'M GOING TO BE SUPPORTING THIS IN THE UPCOMING BUDGET.

YOU DID ANSWER THE ONE QUESTION THAT I HAVE, WHICH WAS GOING TO BE ABOUT THE COLLECTION OF THE, UM, HALF A MILLION DOLLARS THAT ARE STILL OUT THERE. BUT IT SOUNDS LIKE YOU WILL HAVE IT UNDER CONTROL. AND I WAS JUST WORRIED THAT IT MIGHT AFFECT YOUR FUNDING, BUT I'LL BE SUPPORTIVE OF CONTINUING THIS. AND, AGAIN, I JUST WANT TO THANK EVERYBODY INVOLVED. THIS IS A GREAT STEP. THE RESIDENTS THAT CAME TO ADVOCATE FOR THIS ABOUT A YEAR AGO -- THEY'RE NOT HERE TODAY, BUT I KNOW THAT THEY'LL BE HAPPY WITH THIS PROGRESS. AND SO I'LL START OFF WITH MY COLLEAGUES, WITH QUESTIONS AND COMMENTS. AND I'LL START WITH COUNCILMAN COURAGE.

>> MCKEE-RODRIG >> COURAGE THIS IS A REALLY GOOD PROGRAM THAT WE CAN PUT FORWARD AND I WANT TO MAKE SURE THAT WE CAN CONTINUE TO DO IT LONG TERM. YOU MENTIONED ON SLIDE FIVE THAT THERE WERE 22,000 PLUS INSPECTIONS, AND WERE THESE DONE BY THE FIVE MEMBERS OF THAT TEAM

OR WERE OTHER MEMBERS BROUGHT IN INITIALLY TO DO THIS? >> A GOOD QUESTION.

IT'S A MIX OF BOTH. SO THE WAY THAT WE DO IT, WE HAVE FIELD OFFICERS IN EACH AREA. THE INITIAL CODE COMES IN AND THROUGH 3-1-1 AND IT'S ASSIGNED

[00:45:05]

AREA OFFICER. >> COURAGE: AND I KNOW THAT A LOT IS BECAUSE WE PUT THIS PROGRAM TOGETHER AND WE WANTED TO DO THAT EXTRA OUTREACH, SO TO SPEAK, OR TO GET OUT THERE AND LOOK. ARE WE GOING TO KEEP THIS UP WITH JUST FIVE PEOPLE?

>> AS FAR AS WE ARE NOW, YES, WE ARE, BUT AS I MENTIONED WE'RE GOING TO LOOK AT IT CLOSELY AND SEE IF WE NEED ADDITIONAL RESOURCES, WE WILL TALK ABOUT THAT DURING THE BUDGET SEASON.

>> COURAGE: OKAY, YOU MENTIONED THAT THERE WAS A FEE OF $100 PER UNIT.

NOW IS -- LET'S SAY THAT IT'S A 200-UNIT COMPLEX. IS THAT $100 FOR EVERY UNIT OR

$100 FOR THE UNITS THAT MAY HAVE A VIOLATION? >> NO, THE ORDINANCE STATES THAT

IT'S $100 PER UNIT. >> COURAGE: SO THAT'S $20,000 FOR A COMPANY WITH 200 UNITS --

FOR A YEAR OR A MONTH -- OR HOW LONG -- >> FOR A YEAR AND THAT ALLOWS US

TO DO MONTHLY INSPECTIONS. >> COURAGE: SO ANYONE -- ANY OF THESE 24, NOW 23 REGISTERED, IF THEY'VE GOT 200 UNITS THEY ARE PAYING BASICALLY $20,000 FOR THAT?

>> TECHNICALLY -- THE WAY IT WORKS IS, REMEMBER, WE ARE LOOKING AT IT AS SIX MONTHS --

ROLLING SIX MONTHS. >> COURAGE: RIGHT. >> SO THEY TECHNICALLY PAY HALF OF THAT AND IF THEY GRADUATE WITHIN SIX MONTHS THEY DON'T OWE US ANYTHING AND IF THEY STAY LONGER THEY HAVE TO PAY THE REST BECAUSE TECHNICALLY IT SHOULD BE A COST RECOVERY PROGRAM -- THAT WAS THE WHOLE PLAN. SO THEY PAY FOR THE SERVICES THAT THEY GET FROM US BASICALLY.

>> COURAGE: OKAY. WELL, I THINK THAT IT IS A GOOD PROGRAM AND I HOPE THAT IT CONTINUES AND I WANT TO MAKE SURE THAT WE HAVE ENOUGH RESOURCES TO KEEP IT UP.

I U KNOW WHEN YOU KICKSTART SOMETHING YOU ALWAYS THROW A LOT MORE INTO IT, SO LET'S MAKE SURE

THAT WE CAN CONTINUE THIS. BUT IT SOUNDS GOOD TO ME. >> ROCHA GARCIA: THANK YOU,

COUNCILMAN COURAGE. COUNCILMAN CASTILLO. >> CASTILLO: THANK YOU FOR THE TEAM FOR BEING AVAILABLE WHENEVER OUR CONSTITUENT SERVICES TEAM HAS A REQUEST TO GO OUT TO AN APARTMENT COMPLEX AND HELP TO NAVIGATE THOSE CONVERSATION ABOUT THE OUTSTANDING VIOLATIONS OR HOW TO BEST COME INTO COMPLIANCE. WE APPRECIATE YOU ALL.

AND IT MAY RAIN TODAY BECAUSE I THINK THAT WE NEED MORE CODE OFFICERS TO SUPPORT THE APARTMENT INSPECTION TEAM. [LAUGHTER] SO YOU CAN COUNT ON OUR SUPPORT TO ENSURE THAT WE'RE IMPROVING THE QUALITY OF LIFE FOR SAN SAN ANTONIANS.

AND ONE TREND THAT WE HAVE SEEN WITHIN DISTRICT 5 -- AND I UNDERSTAND -- THIS IS ONE CASE AND THIS IS NOT ALL APARTMENT COMPLEXES, BUT WE'VE BEEN RUNNING INTO ALL BILLS PAID APARTMENT COMPLEXES, NOT PAYING THEIR UTILITIES. AND SIMILAR TO RESIDENTIAL PROPERTY OWNERS BY CODE, RIGHT, IF YOU DON'T HAVE THE UTILITIES ON, IT MAY LEAD TO A NOTICE TO VACATE, RIGHT? AND THEN WE HAVE X AMOUNT OF TENANTS NOW HAVING TO FIND RELOCATION SERVICES. SO I'M CURIOUS FOR CASES WHERE THE APARTMENT IS GETTING THE UTILITY PAYMENT THROUGH THE RENT AND THEN FAILING TO PAY THE UTILITIES ON THEIR END -- IF THAT COULD POTENTIALLY COUNT AS A POINT ELIGIBLE VIOLATION, RIGHT? BECAUSE ULTIMATELY IT'S GOING TO BE DHS AND HSD TO NAVIGATE AND TO FIELD THOSE TENANTS THAT ARE NOW LOOKING FOR A PLACE TO -- TO RELOCATE. SO I'M CURIOUS SO IF THAT IS

SOMETHING THAT CAN BE CONSIDERED FOR A POINT ELIGIBLE VIOLATION? >> THAT'S A GOOD QUESTION.

AND NOT PAYING IT, IN GENERAL THEY'LL HAVE A LOT OF VIOLATIONS AND MOST LIKELY THEY WOULD BE IN THE PROGRAM. THAT'S WHAT WE HAVE SEEN. WHAT WE ESTABLISHED NOW IS, AGAIN, GREAT CONNECTION WITH THE UTILITY COMPANIES, AND THE NEIGHBORHOOD HOUSING SERVICES AND WE HEAR THAT, WE IMMEDIATELY REACT. WE START OUR OUTREACH AND TALK TO THE TENANTS AND WE TALK TO OBVIOUSLY THE OWNER TO SEE IF THEY CAN PAY AND WE WORK WITH

THEM ON THAT. >> CASTILLO: THANK YOU. AND I'M READY FOR THEM THAT ARE READY TO GO MAKE CONTACT WITH TENANTS TO LET THEM KNOW WHAT MAY BE COMING AND WHAT THE POTENTIAL OPPORTUNITY FOR RELOCATION IS. SO JUST GRATEFUL FOR CITY STAFF.

AND IN ADDITION TO THAT, I'M CURIOUS -- AND I KNOW THIS IS ONE YEAR OF METRICS -- I'M CURIOUS WHAT IT COULD POTENTIALLY LOOK LIKE IN EXTREME CASES WHERE FOLKS GET ON THE REGISTRY AND THEN COME OFF AND GET ON AND COME OFF, RIGHT. AND WHEN I THINK ABOUT THE RESIDENTIAL PROPERTY OWNERS WHEN THEY GO IN AND OUT OF VIOLATIONS WITH CITATIONS, SOMETIMES THE CITY PUTS A LIEN ON THE PROPERTY. SO I'M CURIOUS IN THIS CASE WITH MULTIFAMILY UNITS -- I KNOW THIS IS DOWN THE ROAD BECAUSE THIS IS ONE YEAR, RIGHT.

[00:50:01]

BUT ULTIMATELY WANTED TO THANK AMIN AND THE SERVICES TEAM, AND OUR CHAIRWOMAN FOR ENSURING THAT

WE'RE BEING BROUGHT UP TO SPEED ON THE METRICS. >> THANK YOU.

AND LET ME JUST ANSWER THAT A LITTLE BIT. SO TODAY IN THE ORDINANCE THAT WE HAVE THAT WE CREATED LAST YEAR IT DOES HAVE THAT -- KIND OF REPEAT OFFENDER.

SO IF YOU GET IN THE PROGRAM, YOU NEED TO BE IN IT FOR SIX MONTHS MINIMUM.

AND IF YOU GRADUATE, YOU GET OUT. BUT IF YOU GET BACK IN THE PROGRAM WITHIN FOUROU YEARS -- O IT'S KIND OF LIKE A PROBATIONARY PERIOD, WHEN YOU GET IN THE PROGRAM YOU HAVE TO STAY IN IT FOR AT LEAST A YEAR. WE HAVE THAT KIND OF IN THE PROGRAM RIGHT NOW BUT WE HAVEN'T SEEN IT YET SO WE MIGHT SEE IT DOWN THE ROAD.

>> CASTILLO: HOPEFULLY NOT BUT THANK YOU, AMIN AND THANK YOU, CHAIR.

>> ROCHA GARCIA: THANK YOU. COUNCILMAN PELAEZ. >> PELAEZ: THANK YOU.

I WANTED TO -- I WANTED TO REALLY EMPHASIZE THE LAST SLIDE THAT YOU SHOWED, REGARDING THE APARTMENTS OVER ON PARK DALE, I THINK THAT IT WAS -- PARK DALE, AND ORZBACH.

FOR COLLEAGUES THAT DON'T REMEMBER IT'S A THREE-STORY APARTMENTS AND THERE WERE STAIRN SOMEBODY. AMIN, YOU AND I WENT OUT THERE AND MIKE SHANNON YOU AND I WENT OUT THERE AND WE STARTED LOOKING AT ALL OF THE OTHER STAIRS AND, UM, THEY WERE ALL ON THE VERGE OF COLLAPSING AS WELL, EXPOSED METAL, SHARP -- SHARP METAL. CHILDREN RUNNING AROUND EVERYWHERE. SOME OF THESE LANDINGS HAD HOLES IN THEM THROUGH WHICH YOU COULD FALL AND FAMILIES HAD TO BE JUMPING OVER HOLES TO BE ABLE IT GET OUT OF THEIR APARTMENTS.

JUST A HOT MESS, RIGHT? AND THEN THERE WERE REPORTS FROM THE TENANTS THAT WHEN THEY WOULD COMPLAIN, THE LAND -- THEY WOULD GET THREATENED BY THE LANDLORD, YOU KNOW, FOR BEING TOO UPPITY, OR BEING TOO DIFFICULT AND THREATENED WITH EVICTION. AND THAT REPAIR REQUESTS TOOK FOREVER. BUT THE LANDLORD NEVER TOOK HIS TIME IN DEPOSITING THE RENT CHECKS, RIGHT, HE DID THAT REAL FAST. SO I THINK THAT -- AND THE REASON THAT I'M HIGHLIGHTING THIS IS BECAUSE THIS IS WHY THE PROGRAM EXISTS, RIGHT? AND ONE OF THE PEOPLE THAT I APPRECIATE VERY MUCH -- AND SHE THINKS THAT I'M KIDDING BUT I'M NOT -- IS A REPORTER NAMED MEGAN RODRIGUEZ AND SHE TOOK THIS REALLY, REALLY SERIOUSLY.

AND SHE WAS OUT THERE AND IT'S FAIR TO SAY, AMIN, THAT SHE SPENT MORE TIME OUT THERE THAN THE CONSTRUCTION PEOPLE DID AND THE INSPECTOR PEOPLE DID AND TALKING TO INDIVIDUAL TENANTS AND REALLY HIGHLIGHTING THIS. AND HER STORY GOT THE ATTENTION OF ALL OF THE OTHER MEDIA IN TOWN WHO ALL LEANED IN AND STARTED REPORTING ON THE PROGRAM AND HOW IT WORKS AND WHY IT EXISTS. I THINK THAT -- YOU KNOW, IT'S VERY UNFORTUNATE THAT IT HAD TO HAPPEN THIS WAY IN ORDER TO GET THE ATTENTION, BUT I THINK WE GOT A LOT OF PEOPLE'S ATTENTION, RIGHT? AND IT WORKED, RIGHT? WE'RE NOT SEEKING TO SHUT PEOPLE DOWN. WE'RE SEEKING COMPLIANCE, RIGHT? AND WE'RE SEEKING TO CREATE ENVIRONMENTS WHERE FAMILIES -- ALL FAMILIES -- CAN LIVE IN DIGNITY BUT ALSO LIVE IN SAFETY, RIGHT? AND THERE WAS NOTHING SAFE ABOUT THAT -- ABOUT THAT -- ABOUT THAT PLACE. TO COMPLICATE MATTERS MORE, IT'S A PLACE WHERE IT'S FULL OF REFUGEES, RIGHT? WHO LEFT THEIR COUNTRIES, UM, COMING HERE THINKING THAT THEY WERE MOVING THEIR FAMILIES TO SOMEWHERE SAFER, SOMEWHERE BETTER.

AND THEN TO LIVE IN A PLACE THAT EVERY DAY PRESENTS SOME VERY REAL DANGER TO THEM AND THEIR CHILDREN. SO I'M JUST DELIGHTED THE WAY THAT THIS WORKS.

CONVERSELY I WILL TELL YOU THAT WE HAVE GOTTEN A LOT OF CALLS -- I FEAR THAT ALL OF US HAVE GOTTEN CALLS FROM OTHER LANDLORDS WHO SAY THIS IS SO UNFAIR AND I'M SINGLED OUT AND I FEEL LIKE -- I FEEL OPPRESSED AND YOU GUYS HATE BUSINESSES AND ALL OF THAT.

AND THE REALITY IS THAT WHEN WE GET THOSE COMPLAINTS, UM, WE BRING THEM TO YOU AND WE BRING THEM TO THE CITY ATTORNEY AND WE HAVE DISCOVERED IF WE DIG JUST A LITTLE DEEP -- A LITTLE DEEPER -- WE DO FIND THAT THEY'VE BEEN WARNED MULTIPLE TIMES.

THEY HAVE RECEIVED A LOT OF CITATIONS. THEY HAVE BEEN LESS THAN RESPONSIVE IN ABATING PROBLEMS. AND YOU GUYS I THINK ARE DOING A VERY FAIR JOB IN USING YOUR DISCRETION PRUDENTLY. AND I -- I'VE SEEN NO EVIDENCE THAT YOU GUYS ARE WEAPONIZING THIS AGAINST GOOD LANDLORD WHOSE ARE TRYING HARD. I SEE NO EVIDENCE THAT YOU'RE BEING TOO HEAVY-HANDED OR YOU ARE USING A BROAD SWORD AND YOU'RE CATCHING WITH YOUR SWING, YOU KNOW, CATCHING INNOCENT ACTORS WHO -- I DO THINK THAT, UH, THE WIELD GRINDS SLOW ALSO.

I MEAN, IT'S 2024 AND WE JUST STARTED -- I MEAN, WE'RE SEEING JUST NOW THAT THEY'RE COMPLETING THE STAIRS, RIGHT. [BUZZER] BUT THE WHEEL GRINDS SLOWLY -- BE

YOU FOR YOUR HARD WORK, GUYS. >> ROCHA GARCIA: THANK YOU, COUNCILMAN PELAEZ.

[00:55:04]

COUNCILMAN VIAGRAN. >> VIAGRAN: THANK YOU. I APPRECIATE THE PRESENTATION AND I'M SO GLAD THAT IT'S BEEN SUCCESSFUL. AND I AM HAPPY TO HEAR WHEN COUNCILWOMAN CASTILLO WOULD LIKE TO SEE MORE CODE OFFICERS. SPECIFICALLY FOR THIS PROGRAM I'M ALL FOR. THE ONE THING THAT I DID WANT TO SEE -- AND I DON'T KNOW IF YOU HAVE IT NOW OR YOU COULD GET IT TO US WITH THE NEXT UPDATE OR GET TO ME AND MY OFFICE -- I WOULD LIKE TO SEE THE VIOLATIONR VIOLATIONS. I KNOW WHEN WE TALKED INITIALLY IT WAS THE OVERGROWN GRASS. AND THEN I WOULD LIKE TO SEE THE LEAST COMMON VIOLATIONS.

SPECIFICALLY FOR MY DISTRICT, UM, BECAUSE WE DO HAVE OLD INFRASTRUCTURE AND WE ARE WORKING TO REHAB. THE OTHER THING IS WE DO HAVE PROBLEMS -- AND I KNOW THAT SOME OF MY COUNCIL COLLEAGUES CAN SAY THAT, IS IF AN APARTMENT DOESN'T SECURE THEIR, UM -- THEIR GARBAGE, UM -- SECURELY, AND PEOPLE START TO DUMP THERE. AND THAT HAS BECOME ANOTHER ISSUE. BUT, UM, I AM -- I AM EXCITED TO MOVE THIS FORWARD.

I REMEMBER THE VOTE. I THINK -- I THINK THAT ALMOST EVERYBODY ON COUNCIL WAS THERE, EXCEPT FOR -- I THINK COUNCILWOMAN HAD ALREADY STEPPED DOWN.

SO I KNOW THIS IS SOMETHING THAT ALL OF US THAT WERE THERE WERE REALLY LOOKING FORWARD TO AND MAKING SURE THAT WE -- UM, WE SAW THE -- THIS MAKE PROGRESS. AND YOU HAVE SHOWN THAT IT HAS BEEN SUCCESSFUL. AND IT HAS HELPED THOSE THAT JUST NEEDED TO TAKE CARE OF A LITTLE VIOLATION THAT MAY HAVE COME UP AND THEN TAKE CARE OF THOSE WHO WERE REALLY BAD ACTORS IN THIS SITUATION. SO IF WE COULD JUST GET THE VIOLATIONS BY DISTRICT OR CENSUS TRACT, IF THAT IS EASIER. AND ALSO IF YOU COULD JUST SHARE THE MOST COMMON AND THE LEAST COMMON, AGAIN, AND SEE IF THAT TREND MAINTAINS. THANK YOU.

>> THANK YOU. >> ROCHA GARCIA: THANK YOU, COUNCILWOMAN VIAGRAN.

AND, AGAIN, THANK YOU, AND THANK YOU TO ALL OF THE STAFF FOR YOUR GREAT WORK.

THIS IS A GREAT PROGRAM AND I ENCOURAGE PEOPLE IT FOLLOW ALONG ON THAT DASHBOARD AND YOU CAN SEE THE LIST OF THE 27 PROPERTIES THAT YOU CAN WATCH OUT FOR RIGHT NOW.

SO THANK YOU SO MUCH. WE WILL MOVE ON TO ITEM NUMBER 3, WHICH IS THE BRIEFING AND POSSIBLE ACTION OFA AMENDMENTS TO CHAPTER 16 OF THE MUNICIPAL CODE, LICENSES AND REGULATIONS.

ARTICLE XXII, AND THAT IS PRESENTED BY MICHAEL SHANNON, SO, MICHAEL, THE FLOOR IS YOURS.

>> SHANNON: I AM MICHAEL SHANNON, AND IT'S TOUGH TO FOLLOW THAT PRESENTATION -- I MEAN, GREAT JOB. SO I'M GOING TO TALK ABOUT AN UPDATE TO THE SHORT-TERM RENTAL ORDINANCE THAT WE HAVE THAT HAS BEEN ON THE BOOKS FOR A LITTLE OVER FIVE YEARS.

SO LET'S JUST GET TO IT. AND SO AS MENTIONED, LAST YEAR -- WE CAME TO THIS COMMITTEE AND WE GAVE AN UPDATE OF THE KIND OF FIVE YEARS OF OUR SHORT-TERM RENTAL ORDINANCE AND WE WERE ASKED BY THIS COMMITTEE TO GO BACK AND TO TAKE A LOOK AT IT AND TO FIND SPECIFIC AREAS THAT WE COULD IMPROVE THE ORDINANCE AND IMPROVE COMPLIANCE.

YOU GAVE US SOME DIRECTION TO GRAB A TASK FORCE, ORGANIZE IT, MAKE SURE THAT IT IS BALANCED, AND BRING BACK SOME PROPOSED CHANGES. AND I'M HAPPY TO SAY THAT WE HAVE A LIST OF RECOMMENDATIONS THAT WE THINK THAT DO JUST THAT. AND I WILL TALK ABOUT THE TASK FORCE IN A LITTLE BIT. SO JUST TO KIND OF SET THE STAGE, AGAIN, REMEMBER THAT SHORT-TERM RENTALS ARE THOSE QUICK STAYS IN USUALLY SOME SORT OF DWELLING -- HOME.

WE HAVE TYPE ONES AND TYPE TWOS. AND TYPE ONE, THE OWNER OR OPERATOR LIVE ON THE PROPERTY AND THEY MAY RENT OUT A ROOM. MAYBE A GRANNY -- AN EXTRA BED BEDROOM OR AN AREA THAT THEY HAVE. BUT THEY LIVE ON THE PROPERTY.

AND THAT IS ALMOST 25%, ABOUT24% OF THE PERMITS THAT WE HAVE NOW, AND THE REMAINDER ARE TYPE TWOS. AND THE OWNER/OPERATOR DOES NOT LIVE THERE.

AND THAT'S STILL THE BREAKDOWN AND THAT THREE-QUARTER TO ONE-QUARTER BREAKDOWN HAS STAYED STEADY OVER THE LAST SEVERAL YEARS IN OUR MARKET. AND SO THE CURRENT ORDINANCE WAS APPROVED IN 2018 AND I THINK THAT IT WAS MENTIONED BY ONE OF THE SPEAKERS -- WE HAVE A COUPLE OF TASK FORCE MEMBERS THAT HELPED US AGAIN. AND THAT PROCESS WAS ALMOST TWO YEARS LONG AND IT WAS VERY -- THERE WAS A LOT OF DEBATE OF WHAT THE ORDINANCE COULD LOOK LIKE AND WE LANDED ON SOMETHING AFTER DOZENS OF MEETINGS, SEVERAL COUNCIL COMMITTEE MEETINGS AND TWO B SESSIONS. I REMEMBER THAT DISTINCTLY. BUT WE ENDED UP GETTING AN ORDINANCE THAT WE THOUGHT THAT WAS BALANCED AND IT WAS WORKING. AND IT HAS WORKED FOR FIVE YEARS. HOWEVER IT NEED SOMEDAY TWEAKS. IT DOES REQUIRE A PERMIT AND THOSE SHORT-TERM RENTAL OPERATORS, EITHER TYPE ONE OR TWO HAVE TO PAY H.O.T., AND WE

[01:00:04]

THE OTHER 12 WERE OPERATORS, SHORT-TERM RENTAL ASSOCIATION, DEVELOPMENT COMMUNITY, AND THE -- AND THE PLATFORM. SO -- AND THEN THEY HAD ALTERNATES AS WELL IN CASE ANYONE COULDN'T MAKE THE MEETINGS. BUT THEY DID A TREMENDOUS JOB.

WE MET IN THAT ROOM AT DSD AND YOU CAN SEE THE ATTENDANCE THERE AND WE HASHED OUT ALL OF THESE PROPOSALS OVER THE LAST SEVERAL MONTHS. SO, AGAIN, I MENTIONED THE DIRECTION WAS TO NOT UNDO THE ORDINANCE, NOT RE-DO THE ORDINANCE BUT TO FIND THOSE IMPROVEMENTS ON CERTAIN FOCUS AREAS THAT WE TALKED ABOUT IN NOVEMBER.

THE MAIN ISSUES ARE PERMIT COMPLIANCE -- HOW COME EVERYBODY IS NOT GETTING THEIR PERMITS? WE BELIEVE THAT OUR COMPLIANCE RATE BASED ON THE DATA THAT WE GET FROM OUR THIRD-PARTY COMPANY AVENUE, WE'RE ABOUT 70% TO 75% WITH PROPER PERMITS. CERTAINLY, THAT AFFECTS THE HOTEL OCCUPANCY TAX COMPLIANCE. WE WANT TO INCREASE THAT. AND THEN ANY ENFORCEMENT -- FOR THOSE NOT DOING IT RIGHT -- THAT AREN'T GETTING THEIR PERMITS AND ARE CREATING PROBLEMS -- WHAT ADDITIONAL STRATEGIES CAN WE ADD TO THE ORDINANCE. HOW CAN WE HANDLE EVENT AND PARTY VIOLATIONS IN NEIGHBORHOODS? THOSE PARTY HOUSES.

EVEN THOUGH THERE'S MAYBE NOT A LOT -- IT JUST TAKES ONE TO REALLY DISRUPT THE NEIGHBORHOOD.

AND WE HAVE SEVERAL EXAMPLES OF THAT -- THAT WE WANT TO HELP FIX.

AND PERMIT FEES -- YOU ALREADY HEARD CONVERSATION ABOUT THAT AND I WILL GO THROUGH THAT A LITTLE BIT. AND WE HAD CONVERSATION ABOUT WHAT ABOUT THE LLCS THAT ARE GETTING MULTIPLE OF THESE PERMITS VERSUS MAYBE INDIVIDUAL PROPERTY OWNERS AND WE MADE SOME CHANGES THERE. AND THEN, OF COURSE, MAKING SOME REQUIREMENTS TO THE ORDINANCE THAT REQUIRES THE PLATFORMS TO DO CERTAIN THINGS, THAT WILL HELP US WITH COMPLIANCE.

AND HAVING AIRBNB AND VRBO WAS AT THE TABLE WAS HELPFUL AND THEY WERE IN 2018 WHEN WE DID IT AND HAVING THEM BACK WAS VERY BENEFICIAL. SO LET ME DIVE INTO THE PROPOSED CHANGES AND I'LL GO THROUGH THEM FAIRLY QUICKLY. BUT WE HIT -- THIS TASK FORCE HIT EACH ONE OF THESE TARGETS THAT YOU ASKED US TO. AND WE'RE GOING TO PROPOSE SOME AMENDMENTS. SO, FOR EXAMPLE, PERMIT COMPLIANCE -- UM, THE NEW PROPOSAL WILL REQUIRE THE PLATFORMS THAT LIST SAN ANTONIO LISTINGS, BOOKINGS, RIGHT? IF THEY DO HAVE A LEGITIMATE PERMIT NUMBER FROM US AND THEY ARE CONTACTED BY US AND OUR TEAM WILL SAY TO SO AND SO PLATFORM IT LOOKS LIKE THAT PERSON DOESN'T HAVE A LEGITIMATE PERMIT DOWN. AND THEY'VE AGREED TO THAT, THEY UNDERSTAND THAT.

AND WE CANNOT HAVE, LIKE THE EXAMPLE THAT I THINK THAT ONE OF OUR SPEAKERS TALKED ABOUT IS FIGHTING TO GET THAT OFF THE PLATFORM. AND SO THEY'RE GOING TO PARTNER WITH US AND THAT'S GOING TO ACTUALLY BE MANDATED IN OUR CODE.

AND THE OTHER IS H.O.T. COMPLIANCE, SO STAR THIS ONE, THIS IS ONE THAT WAS DISCUSSED FIVE YEARS AGO AND WE WORKED A LOT WITH TROY AND OUR FINANCE TEAM.

BUT WE'RE GOING TO MANDATE ANY PLATFORM THAT ALREADY REMITS -- COLLECTS AND REMITS AT THE STATE TAX, THEY'RE GOING TO AUTOMATICALLY COLLECT AND REMIT THE LOCAL AND COUNTY TAX THAT WE'RE RESPONSIBLE. SO REALLY EVERYBODY WANTED THAT, AND THAT'S GOING TO SIGNIFICANTLY INCREASE JUST THAT ONE ALONE, H.O.T. COMPLIANCE, BECAUSE IT'S GOING TO AUTOMATE FOR THE GUESTS AND THE SHORT-TERM OPERATORS AND CERTAINLY FOR US.

AND THANK YOU TO TROY AND OUR TEAM BECAUSE IT'S A TAX-RELATED ITEM SO WE PUT SOME LANGUAGE IN THERE THAT WILL SIGNIFICANTLY INCREASE THE FUNDS THAT WE'RE OWED, GETTING INTO THE H.O.T.

FUND. AND ENFORCEMENT STRATEGIES. SO WE ADDED THINGS AND I THINK THAT SOMEONE MENTIONED QUIET HOURS AND NOTICE OF QUIET HOURS AND THEY NEED TO NOT ONLY KNOW ABOUT THEM BUT POST THOSE. IF YOU HAVE A SWIMMING POOL OR OUTSIDE AMENITIES AND YOU NEED TO REMIND YOUR GUESTS THAT YOU'RE IN A NEIGHBORHOOD AND HAVING SOME NOTICE REQUIREMENTS FOR THOSE GUESTS IS IMPORTANT. AND THEN SOME OF THE ENFORCEMENT OPTIONS -- I HIGHLIGHTED ONE -- I WILL GO OVER THE OTHERS FIRST. WE DID NOT ONLY CRIMINAL ENFORCEMENT WHICH IS IN THE CODE NOW AND WE ADDED ADMINISTRATIVE ENFORCEMENT THROUGH OUR CIVIL PROSECUTION PROCESS AND WE DID EXTEND THE PERMIT REVOCATION FOR CRIMINAL AND CIVIL TICKETS FROM THREE AND SIX MONTHS TO THREE

[01:05:02]

BUT I THINK THAT THE ONE THAT THE GROUP CAME UP WITH -- WHICH MAY BE MOST EFFECTIVE -- IS IT'S GOING TO REQUIRE THAT IF DSD OR THE DIRECTOR OR THE BUILDING OFFICIAL -- IF I GET EVIDENCE THAT THERE'S A PARTY HOUSE THAT IS OUT OF CONTROL -- YES, WE'RE GOING TO WRITE TICKETS OR, YES, WE'LL GO THROUGH THIS AVENUE IN COURT. BUT I DON'T HAVE TO WAIT FOR THAT ANYMORE. I CAN REQUIRE A COMPLIANCE MEETING WITH THAT OPERATOR AND THEY HAVE TO MEET WITH ME AND EXPLAIN TO ME WHAT IS GOING ON AND HOW THEY'LL FIX IT.

WAS IT JUST ONE BAD GUEST? WHAT CONTROLS DO YOU HAVE? AND MAYBE EVEN PUT THEM ON SOME SORT OF PLAN -- COMPLIANCE PLAN -- OVER THE NEXT SEVERAL MONTHS TO MAKE SURE THEY HAVE CORRECTED IT. IF THEY DON'T, I CAN REVOKE ON THAT.

IF THEY DON'T TAKE CARE OF IT. SO IT'S AN ADDITIONAL TOOL. AND I THINK THAT IT HAS APPROPRIATE -- UM, DUE PROCESS, SO IF I DO GO DOWN THAT PATH THEY CAN APPEAL THAT.

LIKE YOU CAN THROUGH THOSE TYPES OF DECISIONS AND OTHER CODES. BUT I THINK THAT ONE IS GOING TO HELP IN A SIGNIFICANT WAY. AGAIN, THE EVENTS AND PARTY VIOLATIONS, WE'VE ACTUALLY ADDED LANGUAGE TO CLARIFY THE MAXIMUM OCCUPANCY OF A SHORT-TERM RENTAL AND HOW IT NEEDS TO BE POSTED FOR THE GUESTS. WE DON'T WANT THESE BIG PARTY HOUSES, NOT ONLY, YOU KNOW, MAYBE THAT HAVE GUESTS OF EIGHT OR 10 PEOPLE ATTEND AND THEN INVITE ANOTHER 28 OR 30 GUESTS -- THAT'S NOT APPROPRIATE. AND I WILL REFERENCE THE COMPLIANCE MEETING WITH THE DIRECTOR THAT WILL AFFECT THAT. AND WE TALKED ABOUT PERMIT FEES AND IT'S OBVIOUS THAT A LOT OF DISCUSSION ABOUT HOW WE DO THAT -- THE COST RECOVER -- AND WE DID SOME CALCULATIONS AND WE PRESENTED SOME OPTIONS TO THE COMMITTEE.

WE LANDED -- THE STAKEHOLDER GROUP LANDED ON THIS. WE RECOMMEND THIS IS THAT WE TRIPLE IT FROM $100 TO $300 FOR EVERY THREE YEARS. WE BELIEVE THAT THE TYPE ONES AND THE TYPE TWOS SHOULD BE THE SAME. THAT WILL HELP US -- WE ALREADY HAVE A PROBLEM WITH SOME OPERATORS THAT ARE TYPE TWOS AND THEY ACTUALLY COME IN AND THEY TELL US THAT THEY'RE A TYPE ONE AND THEY GET A TYPE ONE PERMIT BUT THEN THEY OPERATE AS A TYPE TWO. WE HAVE ENFORCEMENT STRATEGIES ON THAT WE DON'T WANT TO CREATE AN INCENTIVE FOR MORE OF THAT. BUT WE DID A COST RECOVERY OF NOT ONLY STAFF BUT OUR THIRD-PARTY CONSULTANT AND THIS WILL COST RECOVER IN THAT THREE-YEAR PERIOD, BASED ON OUR ESTIMATES OF NOT ONLY WHAT WE HAVE OF PERMITTED STRS NOW, BUT WHAT WE THINK IN THE FUTURE.

SO THAT'S OUR PROPOSAL THERE. AND WE DID PROVIDE SOME LANGUAGR GROUPED TALKED ABOUT LLCS AND OWNERS. AND LLCS, IT'S OKAY TO BUY UP PROPERTIES AND HAVE MULTIPLE LISTINGS, HOWEVER, THERE WERE CODE LANGUAGE THAT SAID IF YOU -- IF YOU HAVE A NEW STAFF MEMBER, YOU HAVE TO GET A NEW PERMIT AND IT WAS CUMBERSOME SO THEY TWEAKED THIS.

WE WANT THE LLCS TO STAY IN COMPLIANCE AND NOT HAVE AN OPPORTUNITY TO GET OUT OF COMPLIANCE OR A REASON TO, IF YOU WILL AND THEN LASTLY, WE TALKED ABOUT THE PLATFORMS. AND THIS ORDINANCE WILL GIVE THEM DIRECT REQUIREMENTS AND RESPONSIBILITY TO HELP US WITH PERMIT AND HOT COMPLIANCE. SO I THINK THOSE ARE THE BIG ONES THAT WE WERE ASKED TO DO.

WE, AGAIN, HERE'S NOVEMBER THROUGH TODAY. THE BOARD OF ADJUSTMENT HEARD THESE CHANGES. THEY ARE THE BOARD THAT HEARS SPECIAL EXCEPTIONS OR APPEALS.

THEY HEARD THIS EARLIER THIS WEEK. THEY RECOMMENDED APPROVAL OF THE STAKEHOLDER GROUP'S RECOMMENDATIONS. THEY ADDED ONE CLARIFYING SENTENCE TO THE REVOCATION PROCEDURE, BUT IT WAS MORE A CLARIFICATION THAN ANY CHANGE.

SO THEY SUPPORTED IT. AND WE -- WE RECOMMEND TODAY -- THERE'S OUR SUMMARY OF IT -- BUT WE RECOMMEND THAT THESE PROPOSED AMENDMENTS DO WHAT YOU ASKED US, THEY'RE GOING TO ENHANCE AND IMPROVE THE ORDINANCE. REALLY MAKE IT MORE EFFICIENT TO ADIÓS ADD MINISTER AND TO HAVE COMPLIANCE WITH CODES AND H.O.T. AND TO HAVE TOOLS TO GET RID OF ANY BIG VIOLATORS AND THE PARTY HOUSES AND THOSE TYPE OF THINGS. WE RECOMMEND THAT THIS IS APPROVED TDHCA AND MOVE TO FULL COUNCIL NEXT MONTH FOR ADOPTION AND THEN IT WOULD GO LIVE IN THE SUMMER.

>> ROCHA GARCIA: THANK YOU, MIKE. >> SHANNON: HERE FOR ANY

QUESTIONS. >> ROCHA GARCIA: THANK YOU, WE APPRECIATE ANY OF YOUR WORK AND THANK YOU TO MELISSA AND LOGAN FOR FACILITATING THE TASK FORCE MEETINGS SPECIFICALLY.

I THINK THAT WE HAVE A GREAT TEAM AT DSD, VERY PROFESSIONAL, AND I FEEL THAT THEY'RE OPEN TO A LOT OF QUESTIONS. I ALSO WANT TO THANK THE CITY ATTORNEY'S TEAM BECAUSE I HEARD THAT WE HAD A WHOLE ROOM FULL OF LAWYERS THAT CAN ALWAYS ANSWER QUESTIONS.

SO YOU CAN PASS MY THANKS TO THE TEAM. AND THEN, OF COURSE, TO THE TASK FORCE MEMBERS. SO IT TAKES A LOT OF TIME AND EFFORT, AGAIN, FOR YOU ALL TO BE AWAY -- BUT YOU ALL SHOWED UP AND YOU WERE ALL COMMITTED TO THE CHANGES.

SO I APPRECIATE THAT. AND THEN I WOULD LIKE TO START OFF JUST LIKE WITH THE OTHER ONS OF VIEW. BUT I FEEL LIKE WE CAME TO A GOOD CONCLUSION TOGETHER.

AND I JUST -- THERE'S PEOPLE THAT MIGHT, UM, THINK OF THIS IN TERMS OF THEIR NEIGHBORHOOD, BUT

[01:10:03]

CITIES? >> SHANNON: YEAH, IT'S STILL ON THE LOWER END.

MOST OF THE OTHER CITIES WILL DO AN ANNUAL PERMIT. WE DON'T RECOMMEND THAT BECAUSE THAT ACTUALLY ADDS MORE ADMINISTRATIVE COSTS NOT ONLY TO THE CITY BUT TO THE OPERATORS AND EVERYBODY. SO WE LIKE THE THREE-YEAR PERMIT.

BUT, CERTAINLY, IT'S STILL ON THE LOWER END. BUT WE DO HAVE RANGES OF A COUPLE HUNDRED DOLLARS A YEAR TO SOME CHARGE $900 A YEAR AND, AGAIN, I'M NOT -- I'M NOT SURE WHAT THAT COST RECOVERY FOR THEM IS. BUT WE SHOWED OUR COST RECOVERY -- OUR STAFF AND OUR OUTSIDE CONSULTANT -- THAT WE PAID FOR, AND CERTAINLY THE H.O.T. FUNDS GO TO A SORT OF A SEPARATE ACCOUNT. WE HAVE SOME COMPLIANCE RESOURCES THERE. BUT THAT'S KIND OF SEPARATE. BUT THE PERMIT FEES -- UM, WITH THE $300 WOULD RESULT TO APPROXIMATELY HALF A MILLION DOLLARS IN REVENUE A YEAR, WHICH WOULD COVER PROBABLY THE $1.5 MILLION EXPENSE THAT WE HAVE OVER A THREE-YEAR PERIOD.

BUT IT IS STILL A BIT ON THE LOWER END. BUT WE WERE -- WE WERE THE LOWEST BY FAR WITH THE $100, I MEAN $33 A YEAR -- BUT WE KNEW THAT GOING IN FIVE YEARS AGO, THAT WAS DISCUSSED. BUT WE KNOW THAT IT IS TIME TO INCREASE IT BECAUSE OUR NEEDS TO

ENFORCE AND AD ADMINISTER THE ORDINANCE HAS INCREASED. >> ROCHA GARCIA: THANK YOU, WONDERFUL. AND I WOULD LIKE TO REQUEST AN UPDATE, RIGHT, TO SEE HOW THAT IS GOING OR IF WE'RE STILL BUDGET-WISE OKAY, RIGHT? SO MAYBE AT A CERTAIN POINT AND MAYBE ON -- I WOULD ASK FOR ME AT LEAST ONE YEAR TO SEE HOW IT GOES WITH THIS NEW P PROPOSED RATE. BUT I'M LOOKING FORWARD TO WHAT MY COLLEAGUES HAVE TO ADD AND I

WILL START WITH COUNCILWOMAN CASTILLO. >> CASTILLO: THANK YOU, CHAIRWOMAN AND TO MIKE FOR THE PRESENTATION AND TO THE INDIVIDUALS WHO GAVE PUBLIC COMMENT AND SERVE ON THE TASK FORCE COMMITTEE. I AM PLEASED TO SEE WITH SOME OF THE FOCUS AREAS THAT THERE WAS CONSENSUS. I DID WANT TO HIGHLIGHT AND FOCUS PRIMARILY ON THE PERMIT FEES. WHILE I UNDERSTAND INCREASED PERMIT FEES WON'T NECESSARILY SOLVE THE HOUSING CRISIS, I THINK THAT WHEN WE LOOK AT THE CASE STUDIES THAT EXIST ON HOW SHORT-TERM RENTALS IMPACT HOUSING STABILITY AND LOCAL HOUSING ECOSYSTEMS, THEY'RE VERY DESTABILIZING. AND I WANTED TO THANK ERIN OF TEXAS HOUSERS WHO GAVE A PRESENTATION TO THE COMMUNITY AND FOUND HARVARD BUSINESS REVIEW STUDY THAT FOUND A POSITIVE CORRELATION BETWEEN THE NUMBER OF AIR BNB LISTINGS IN NEIGHBORHOODS AND THE ASKING PRICE FOR RENT, RIGHT. SO HOW THESE SHORT-TERM RENTAL CAN IMPACT THE OVERALL RENTS WITHIN A NEIGHBORHOOD. FURTHER, AIRBNB HAD INCREASED HOUSING COSTS. FURTHER, THERE'S ANOTHER STUDY THAT 12 AIR DIAGNOSE BNB PER CENSUS TRACT LEADS TO AN INCREASE IN HOUSING RENTS. SO THIS IMPACTS EVERYONE, AND NOT JUST NECESSARILY THE SHORT-TERM RENTAL. THERE'S AN ADDITIONAL STUDY THAT FOUND THAT A 1.4% INCREASE IN NEW YORK CITY RENTS FROM 2015 TO 2017 DUE TO AIRBNB EXPANSION IN THE CITY WHICH EQUATES TO ROUGHLY A $384 ANNUAL INCREASE IN RENT IN NEW YORK CITY.

SO THE CONCERN THAT I HAVE WITH THE PROPOSED PERMIT FEE IS THAT WHEN WE LOOK AT THE COMPARISON ACROSS DIFFERENT CITIES IN TEXAS, WHICH RANGE FROM TO FORT WORTH AND DALLAS AND AUSTIN, WE STILL HAVE THE LOWEST ANNUAL SHORT-TERM RENTAL PERMIT FEE. AND I BELIEVE THAT WHEN WE LOOK AT THE OVERALL HOUSING NEED IN THE CITY OF SAN ANTONIO, WE CAN'T PLAY FIREFIGHTERS AND ARSONISTS AT THE SAME TIME, RIGHT? AND HAVE LOW FEES FOR AN AND THEN ARGUE THAT HOUSING AFFORDABLES ARE PRIORITY. WITH THAT, YOU KNOW, I WOULD LIKE TO SEE AN INCREASE FOR THE SHORT-TERM RENTAL TYPE 2 FEE, AND I KNOW YOU ALL CAME UP WITH A CONSENSUS, BUT I BELIEVE IT'S INCUMBENT ON US POLICYMAKERS TO LOOK AT THE DATA AND THE NEED FOR AFFORDABLE HOUSING, MANY OF WHICH ARE RENTAL UNITS, ARE THE TYPE OF HOUSING MY CONSTITUENTS ARE LOOKING FOR, FOLKS LOOKING FOR AFFORDABLE RENT AND LOOKING AT THE DATA, HOW THIS INCREASES RENT IN SURROUNDING NEIGHBORHOODS IS VERY CONCERNING. FURTHER, SAN ANTONIO WOULD BE ONE OF THE FEW, IF NOT THE ONLY CITY THAT DOESN'T HAVE A RENEWA ANNUAL; RIGHT? IT'S THREE

[01:15:09]

THIS ISSUE. THANK YOU, >> ROCHA GARCIA: THANK YOU

COUNCILWOMAN. COUNCILMAN PA LIES. >> PELAEZ: I'M STEEL REELING REG THAT COUNCILWOMAN CASTILLO WANTS MORE INSPECTORS. YEAH.

IT'S RECORDED. SO I THINK WE'RE A CITY THAT IS CAPABLE OF WALKING AND CHEWING GUM AT THE SAME TIME. I THINK WE CAN BALANCE COMPETING INTERESTS, THAT'S OUR JOB; RIGHT? AND THERE ARE COMPETING INTERESTS HERE. THERE'S GOOD PEOPLE OUT THERE WHO NEED HOMES AND WHO NEED LOW -- YOU KNOW, AFFORDABLE RENTS, AND THERE'S ALSO GOOD PEOPLE OUT THERE WHO HAVE TAKEN THEIR RETIREMENT FUNDS AND, YOU KNOW, WHO ARE INVESTING THEIR FEW DOLLARS IN BUYING HOMES AND, YOU KNOW, IN BEING SMALL BUSINESS OWNERS. I THINK THAT WE CAN ACCOMPLISH BOTH THINGS AND DO RIGHT BY EVERYBODY.

AND SO THE QUESTION I ALWAYS ASK MYSELF WHEN APPROACHING POLICY DECISIONS APPEAR IS CAN WE DO IT, AND SHOULD WE DO IT; RIGHT? AND MY -- THE CHARTER GUIDES US ON THAT, OUR CONSTITUTION, IF YOU WILL.

IF YOU LOOK AT ARTICLE 1, WE HAVE MULTIPLE POWERS, AND THEY ALL SPEAK TO THIS ISSUE; RIGHT? WE HAVE THE POWER TO TAKE WHATEVER LEGAL ACTION IS NEEDED TO GUARANTEE THE WELFARE AND GOOD ORDER OF THE CITY AND THE INTEREST TO WELFARE HEALTH, COMFORT, SAFETY AND CONVENIENCE TO OUR INHABITANTS. I THINK YOUR STAFF RECOMMENDATION IS INFORMED BY THAT POWER; RIGHT? WE HAVE THE POWER TO DEFINE, PROHIBIT, DEBATE, SUPPRESS AND OPPRESS ALL THINGS THAT ARE DETRIMENTAL TO THE HEALTH, COMFORT, SAFETY AND CONVENIENCE OF OUR INHABITANTS, I THINK YOUR POLICY RECOMMENDATION ALIGNS WITH THAT. WE HAVE THE POWER TO REGULATE THE USE OF ALL BUILDINGS AND STRUCTURES IN THE CITY.

I THINK THAT THAT RECOMMENDATION SQUARES WITH THAT AS WELL.

WE HAVE THE POWER TO LICENSE AND REGULATE CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS ENGAGED IN ANY BUSINESS, WHICH WE'RE DOING WITH THIS ORDNANCE AND WE ALSO HAVE THE POWER TO PROVIDE SUITABLE PEN PENALTIES FOR THE VIOLATION OF ANY REGULATIONS ENACTED BY THE CITY, WHICH WE'RE DOING.

I'M LAYING IT ON REAL THICK ON PURPOSE BECAUSE THERE'S A LOT OF PEOPLE OUT THERE WHO SAY YOU GUYS SHOULDN'T BE DOING THIS, THIS ISN'T WITHIN YOUR MANDATE, AND YOU KNOW, YOU NEED TO GET OUT OF THE WAY OF, YOU KNOW, INVESTORS AND LET US DO WHATEVER WE WANT WITH OUR PROPERTY.

GO TO ANOTHER CITY, RIGHT, WHERE THESE AREN'T THEIR POWERS, AND IN SAN ANTONIO, THE VOTERS HAVE DECIDED TO PUT THESE POWERS IN OUR CHARTER, AND I THINK WE'VE ALWAYS DONE A GOOD JOB IN EXERCISING THESE POWERS IN A BALANCED MANNER. I WILL ALSO REMIND YOU THAT I HAD TO GO THROUGH THE TORTURE OF SITTING THROUGH REAL PROPERTY CLASSES THE SAME WAY MY FRIEND OVER HERE DID WHEN WE WERE IN LAW SCHOOL. AND DO YOU REMEMBER THE TERMS THAT WE SAW OVER AND OVER AGAIN IN THOSE CASES WE HAD TO STUDY, THE QUIET ENJOYMENT OF REAL PROPERTY; RIGHT? THE QUIET ENJOYMENT OF REAL PROPERTY IS SOMEBODY THAT EVERYBODY HAS A RIGHT TO, RIGHT, NOT JUST OWNERS, BUT TENANTS AS WELL. IN OTHER WORDS, WE HAVE A RIGHT TO LIVE IN OUR PROPERTIES AND NOT BE DISTURBED BY PARTY HOMES NEXT DOOR; RIGHT? WE HAVE A RIGHT TO BUY A HOUSE IN A SINGLE FAMILY NEIGHBORHOOD THAT IS ZONED THAT WAY, THAT IS PLATTED THAT WAY WITH HOMEOWNERS ASSOCIATION'S RULES THAT SAY THESE ARE FOR SINGLE FAMILY PURPOSES, AND EXPECT THAT, YOU KNOW, AN INVESTOR WHO -- OR A SPECULATE TOR WHO BROUGHT A PROPERTY NEXT DOOR WON'T KEEP MY CHILDREN UP AT NIGHT WITH, YOU KNOW, THE PARTY OF THE WEEK; RIGHT? I THINK IT IS FAIR TO CRACK DOWN ON THOSE KINDS OF ACTIVITIES. THERE ARE PLACES AROUND SAN ANTONIO WHERE PARTIES ARE PERFECTLY ACCEPTABLE, AND, YOU KNOW, JOHN COURAGE AND I WILL GO TO ANY PARTY YOU INVITE US TO, RIGHT, JOHN. SO AS LONG AS THE PARTIES DON'T DISTURB THE NEIGHBORS AND KEEP PEOPLE UP AT NIGHT AND KEEP THEM FROM GOING TO WORK IN THE MORNING.

[01:20:01]

THANK YOU. >> ROCHA GARCIA: THANK YOU COUNCILMAN PELAEZ.

COUNCILWOMAN VIAGRAN. >> VIAGRAN: THANK YOU, MIKE, FOR THE PRESENTATION AND ALSO THE BRIEFING. AS YOU KNOW, MY DISTRICT TAKES IN A SIGNIFICANT PART, THE REST OF THE MISSIONS -- THE FOUR MISSIONS OF THE WORLD HERITAGE, AND I WAS ABLE TO TRAVEL WHEN I WAS WITH VISIT SAN ANTONIO WITH COLLEEN AND THE FFORMER COUNCILWOMAN TO AMSTERDAM AND SEE WHAT'S GOING ON IN EUROPE AND SEE HOW COMPANIES, LLCS, BASICALLY TYPE 2STRS HAD COME INTO AREAS AND HAD BASICALLY OVERTAKEN THEM, AND THAT THE RESIDENTS THAT ONCE LIVED THERE COULD NO LONGER LIVE THERE SO MY CONCERN REALLY COMES FROM THAT ANGLE. I AM SUPPORTIVE OF WHAT YOU HAVE BROUGHT FORWARD, HOWEVER, I THINK WE NEED TO -- AND, COMMITTEE, YOU HAVE DONE AN INCREDIBLE JOB.

I'VE BEEN ON PCDC SINCE I WAS ELECTED, AND I HAVE SEEN YA'LL WORK VERY HARD, AND I KNOW -- I DON'T KNOW IF SOME OF YA'LL ARE SITTING THERE AND SAYING SHE'S NOT ASKING TO GO BACK TO COMMITTEE. BUT, YES, I AM ASKING YOU TO GO BACK AND TO SEE -- LET'S GET A LITTLE MORE SPECIFIC IN TERMS OF THE TRENDS, ESPECIALLY REGARDING TYPE 2, AND THOSE THAT START OUT AS TYPE 1 BUT THEN TRANSITION TO TYPE 2 BECAUSE I WANT TO MAKE SURE THAT WE'RE NOT -- THAT SOME OF THE MORE DESIRABLE AREAS, WHICH WILL BE A LOT THAT SITS IN AND AROUND DOWNTOWN, WHICH INCLUDES MY AREA, COUNCILWOMAN'S CASTILLO'S AREA IN ADDITION TO DISTRICT 1.

I THINK THIS IS SOMETHING THAT THE OTHER KR COUNCILMEMBERS WHO SEE IT COMING GO AHEAD AND HAVE A LITTLE BIT MORE SAY IN TERMS OF IT BECAUSE -- THIS IS GREAT AND IT ADDRESSES EVERYTHING WE'VE DONE, BUT THERE ARE MORE ISSUES THAT ARE GOING TO COME UP. SO I THINK WE NEED TO EITHER EVERY YEAR OR EVERY TWO YEARS BRING THIS COMMITTEE TOGETHER AND SAY, OKAY, WHAT CHANGES CAN WE MAKE? WHAT FEES ARE APPLICABLE? WHAT L SS OF CHANGE COULD WE CREATE MORE POLICY.

SO REMIND ME BECAUSE I KNOW WE HAD A LOT OF VERY INFORMED SPEAKERS ON THE STRS FOR TYPE 2, WE CAN'T CHARGE THEM A DIFFERENT FEE THAN WE CHARGE TYPE 1, AN ANNUAL FEE.

>> NO, COUNCILWOMAN, WE CAN IF WE WANT TO. IT'S NOT PROHIBITED, BUT WE'RE RECOMMENDING THAT BOTH THE TYPE 1 AND TYPE 2 FEE, WHICH ARE BOTH -- THEY'RE EQUAL NOW, BUT THEY BOTH GET TRIPLED TO THE 300 EVERY THREE YEARS.

>> VIAGRAN: OKAY. YEAH. I THINK WE NEED TO LOOK AT -- I WOULD LIKE TO SEE IT INCREASE FOR TYPE 2 BUT NOT TYPE 1 FROM THE 300 -- I MEAN, I THINK IT SHOULD MOVE TO 300 FOR BOTH. I AGREE WITH THAT. BUT I THINK WE NEED TO LOOK AT POSSIBLY -- BECAUSE I CAN TELL YOU THIS. I BET THE LLCS, THE TYPE 2 ARE CHARGING A LOT MORE FEES FOR PEOPLE WHO USE THEIRS THAN MY -- I HAVE SPECIFIC NEIGHBORS WHO I KNOW IN MY DISTRICT HAVE A TYPE 1, AND I KNOW THEY'RE PROBABLY NOT CHARGING THE FEES THAT A TYPE 2 IS.

SO THAT'S WHY I'M THINKING MAYBE WE CHARGE MORE FOR -- WE LOOK AT EXAMINING MAYBE GOING FROM 300 TO MORE FOR THOSE TYPE 2S.

THE OTHER IS THE TRAFFIC. I KNOW IF YOU'RE A TYPE 1, YOU KNOW HOW MANY PARKING SPOTS YOU HAVE, AND YOU KNOW WHAT YOUR NEIGHBORS LIKE, SO YOU'RE NOT GOING TO HAVE PEOPLE PARKING ON THE STREET. BUT I KNOW IF YOU'RE A TYPE 2, YOU MAY NOT NECESSARILY KNOW IF YOU MOVED INTO A NEIGHBORHOOD, WHO'S OKAY WITH PARKING IN THE STREET AND WHO ISN'T, SO I THINK THAT'S PROBABLY ANOTHER THING WE NEED TO LOOK AT IN TERMS OF -- BUT THAT WOULD TAKE MORE TIME TO LOOK AT HOW THEY ADVERTISE. AND IDEALLY WE THINK IT'S ONE COUPLE OR ONE FAMILY, BUT 4 BY 4 IS COMING NEXT YEAR, AND OUR AIRBNBS WILL BE PACKED WITH FOUR PEOPLE IN ONE BEDROOM.

AND I WANT TO -- AS WE CONTINUE TO HOST THINGS LIKE THE FINAL FOUR AND OTHER THINGS IN THE CITY, I THINK WE NEED TO LOOK AT HOW WE -- HOW WE MANAGE TYPE 2STRS. SO THANK YOU. I DO WANT TO MOVE THE CURRENT CHANGES FORWARD, BUT I WOULD LIKE TO SET A MEETING TO HOW WE'RE GOING TO ADDRESS THIS AS THE CITY GROWS AND ALSO BRING

[01:25:01]

DON'T KNOW IF COUNCILMAN PELAEZ MADE A MOTION. >> ROCHA GARCIA: NO.

THERE HASN'T BEEN A MOTION. IF YOU WANT TO MAKE A MOTION, YOU CAN, AND THEN WE CAN CONTINUE HAVING DISCUSSION AND

QUESTIONS. >> VIAGRAN: OKAY. I'LL WAIT UNTIL THE

QUESTIONS ARE OVER. THANK YOU. >> ROCHA GARCIA: OKAY.

THANK YOU. BEFORE -- I KNOW THAT COUNCILMAN COURAGE IS NEXT. BUT MIKE, TWO QUESTIONS, 1, DID YOU ALL SEE IF THERE WAS PRIVATE EQUITY VERSUS MARKET? DID YOU ALL TAKE INTO CONSIDERATION THAT -- WHO THE OWNERS ARE BY ANY CHANCE?

>> IN WHAT WAY, COUNCILWOMAN? >> ROCHA GARCIA: SO I KNOW THAT IN SOME -- LIKE I MENTIONED, THE EXAMPLE WHERE I SAID THAT SOME PEOPLE WILL INVEST, RIGHT, BECAUSE THEY'RE TRYING TO GET THEIR CHILDREN THROUGH COLLEGE OR HIGH SCHOOL, WHATEVER; RIGHT BUT I KNOW THAT THERE'S SOME OUT OF MARKET INVESTORS THAT COME IN; RIGHT? DO YOU ALL HAVE THAT DIFFERENCE? DO YOU SEE WHO IS? OR IS IT JUST DETERMINED BY TYPE 1 AND TYPE 2? OR DO YOU HAVE THE BREAKDOWN.

>> WE HAVE THE OWNER AND OPERATOR INFORMATION OF EVERY ONE OF OUR 2900 + SHORT-TERM RENTALS. SO WE HAVE THAT. WE DID LOOK INTO HOWEVER MANY OVERALL LLCS, WE HAD, WHICH WAS A COUPLE 100LLCS.

YEAH. LISTED AS LLC, THERE'S A COUPLE HUNDRED.

I DON'T KNOW IF WE BROKE DOWN THE OWNERS -- LET'S CALL IT INSIDE SAN ANTONIO LIMITS OR BEAR COUNTY VERSUS OUT. WE CAN DO THAT.

>> ROCHA GARCIA: YEAH. I'D LOVE TO SEE THAT. AND THEN THE SECOND THING THAT I'M WONDERING ABOUT. SO I -- IT'S BEEN EMBEDDED IN MY HEAD FOR SOME REASON BY ERIC WALSH THAT THE CITY CAN'T MAKE MONEY. SO YOU ALL ARE JUST GOING FOR COST RECOVERY.

WHAT WOULD IT DO IF IT ADDED THE FEE? I GUESS WHAT

DIFFERENCE -- WHAT HAPPENS, I GUESS. >> WELL CERTAINLY THAT WAS DISCUSSED AS A COMMITTEE; RIGHT? AND WE BELIEVE -- YOU KNOW, MOST OF MY PERMIT FEES ON THE PERMIT SIDE OF THE HOUSE ANYWAYS, IT'S ALL BASED ON COST RECOVERY. THAT'S PART OF HOW WE DO BUSINESS. THAT'S VERY APPROPRIATE. ADDING AN ADDITIONAL FEE, MAYBE MAKING SOME MONEY OFF OF TYPE 1S OR TYPE 2S TO CREATE AND/OR PUT IT SOMEWHERE ELSE IN CONSULTATION WITH THE CITY ATTORNEY'S OFFICE, THAT'S NOT REALLY IN LINE WITH STATE LAW, THEY USE TERMS LIKE LINKAGE FEES OR OTHER TERMS, BUT THAT WAS DISCUSSED, AND I DON'T WANT TO SPEAK FOR OUR CITY ATTORNEYS BECAUSE YOU SAID THEY WERE SO GREAT. I WOULD LIKE TO GIVE THEM TIME IF THEY WANT

TO. >> ROCHA GARCIA: YEAH. >> BUT WE DON'T THINK

IT'S APPROPRIATE. I'LL JUST SAY THAT. >> ROCHA GARCIA: WELL, I JUST WANT TO KNOW THE LEGAL IMPLICATIONS; RIGHT? BECAUSE, AGAIN, THAT'S KIND OF WHAT'S ALWAYS BEEN DRILLED IN ME WITH YOUR DEPARTMENT IN PARTICULAR. SO I JUST DON'T WANT

TO -- I WANT TO MAKE SURE THAT WE'RE OKAY. >> I'M MATH THY MORTON WITH THE CITY ATTORNEY'S OFFICE. THE COURT WOULD MOST LIKELY DETERMINE IT'S A TAX. SO IT WOULD TURN FROM A PERMIT FEE TO A TAX, THAT WOULDN'T BE AUTHORIZED.

>> ROCHA GARCIA: OKAY. AND SO WE'LL NEED SOME MORE INFORMATION THERE, JUST FYI. BUT I -- I JUST WANTED TO MAKE SURE I ASKED THE

QUESTION. COUNCILMAN COURAGE. >> COURAGE: YEAH.

I'LL FOLLOW UP ON THAT QUESTION BECAUSE I KNOW THAT YOUR OFFICE OVER THE YEARS ACCUMULATES ADDITIONAL REVENUE THAT YOU DIDN'T EXPEND, AND IT CAME FROM BUSINESSES THAT WERE GETTING PERMITS OR THINGS LIKE THAT. WHAT WOULD BE THE DIFFERENCE FROM MAKING A LITTLE BIT MORE MONEY ON A HIGHER CHARGE FOR A SHORT-TERM RENTAL IF IT JUST GOES INTO YOUR DEPARTMENT'S BUDGET SO THAT YOU COULD HIRE ADDITIONAL PEOPLE OR WHATEVER ELSE YOU NEEDED TO EXPAND FOR NEW COMPUTERS OR NEW TECHNOLOGY SO THAT THE HAVE TO TAKE IT OUT OF THE GENERAL BUDGET? SO IF WE'RE NOT ASSIGNING IT BUT OTHER THAN ALLOWING YOUR OFFICE TO KEEP IT FOR ITS EXPANSION OF SERVICES, I CAN'T SEE WHY THAT WOULD BE A PROBLEM, CHARGING A HIGHER FEE. LAWYER, CAN YOU TELL ME, AM I WRONG ABOUT THAT.

>> WELL, LET ME START -- IF YOU DON'T MIND, AND THEN I'LL LET HIM COME UP. BUT OUR OVERALL DEVELOPMENT SERVICES FUNDS -- AND THEY'RE PRICED FUNDS; RIGHT? AND WE CHARGE PERMIT FEES AND EXPEND OUR RESOURCES. WE HAVE TWO THINGS THAT ARE ALSO INCLUDED IN OUR FUND. WE USE THAT MONEY TO PAY

[01:30:03]

WE HAVE A THREE-MONTH, CALL IT EMERGENCY FUND PART OF OUR BUDGET SIMILAR TO THE COUNCIL HAVING A RESERVED FUND FOR THOSE EMERGENCIES.

WE ALSO HAVE A CAPITAL BUDGET FOR CAPITAL IMPROVEMENTS THAT WE HAVE TO MAKE. FOR EXAMPLE, WE HAVE THE ONE-STOP CENTER DOWN THE STREET. WE DO THAT DEFERRED MAINTENANCE OUT OF THAT FUND. SO THERE'S NO EXTRA MONEY IN THAT FUND.

YOU SEE A RESERVE THAT HAS SEVERAL MILLION DOLLARS BECAUSE OUR MONTHLY EXPENSES ARE ABOUT $3 MILLION A MONTH, AND THEN WE HAVE CAPITAL PROJECTS TO UPGRADE AND MAINTAIN THAT FACILITY.

SO I DON'T KNOW IF WE HAVE EXTRA MONEY. CERTAINLY, WHEN I DO GET MORE PERMITS COMING IN, WE TAKE THAT MONEY AND WE HIRE MORE INSPECTORS AND MORE PLAN EXAMINERS, WHICH WE HAVE DONE THROUGH THE BUDGET PROCESS.

>> COURAGE: AND MY NEXT POINT. >> SURE. >> COURAGE: AND THAT IS HOW MANY PEOPLE DO YOU HAVE RIGHT NOW AS FAR AS CODE COMPLIANCE OR PEOPLE DEDICATED TOWARDS SHORT-TERM RENTALS, HOW MANY DO YOU HAVE RIGHT NOW COMMITTED TO THAT ASPECT OF YOUR OFFICE?

>> WE HAVE A TEAM OF FOUR DEDICATED -- WE CALL THEM PLANNERS OR PERMIT PEOPLE PLUS A CODE OFFICER DEDICATED TO SHORT-TERM RENTAL.

>> COURAGE: AND THERE'S 2900 SHORT-TERM RENTALS AND IF HALF OF THEM WERE HAVING SOMEBODY RENT IT TONIGHT, HOW COULD YOU CHECK TO SEE IF THEY'RE OPERATING PROPERLY?

IS IT JUST BECAUSE PEOPLE COMPLAIN? >> WELL, REMEMBER, WE'VE ALSO HIRED A THIRD-PARTY COMPANY THAT WE SPENT OVER $100,000 OF THIS MONEY AND THEN SOME OF IT IS ALSO FOR THE HUD AND TROY'S TEAM.

WE HAVE A PARTY THAT'S OUTSOURCED THAT, AND THEIR JOB IS SERVING ALL THE PLATFORMS, NOT JUST THE BIG ONES. THERE ARE 50 OTHER PLATFORMS THAT PEOPLE ARE LISTING AND BOOKING ON, AND SOME ARE TINY, BUT THEY'RE DOING THAT JOB. BUT WE'VE OUTSOURCED AND

THAT'S IN COST RECOVERY MODEL. >> COURAGE: WELL, HOW MANY PEOPLE ARE GOING OUT AT NIGHT TO CHECK FOR PARTIES FROM YOUR DEPARTMENT.

>> NONE. >> COURAGE: WELL, THAT'S WHY WE NEED MORE CODE COMPLIANCE PEOPLE, AND I WOULD SAY WE NEED TO PAY FOR THOSE BY HAVING A HIGHER FEE.

>> YEAH. >> COURAGE: THAT'S THE BIGGEST CONCERN THAT WE HEAR, AND IT HAPPENS ALL THE TIME, ALMOST MONTHLY. ONE OF US OR MORE THAN ONE OF US HEAR ABOUT THAT. SO I WOULD SAY RAISING THE FEE TO $300 A YEAR FOR SOME OF THESE BUSINESSES THAT ARE OPERATING IN RESIDENTIAL AREAS, I THINK IT MAKES SENSE FOR US TO HAVE ADDITIONAL RESOURCES TO ADDRESS THAT. AND THAT'S ALWAYS BEEN A COMPLAINT OF MINE ANYWAYS, THAT WE ARE AUTHORIZING BUSINESSES, AN LLC, TO OPERATE WITHIN A RESIDENTIAL NEIGHBORHOOD.

AND I ALWAYS THOUGHT WE HAD A LOT OF ZONING RESTRICTIONS AND CODES THAT DIDN'T ALLOW US TO GO AHEAD AND JUST SET UP ANY OLD BUSINESS IN THE MIDDLE OF A RESIDENTIAL NEIGHBORHOOD, BUT THAT'S WHAT WE'VE DONE WITH SHORT-TERM RENTALS. I WOULD LIKE SOME ADDITIONAL TIME AFTER

ANYONE ELSE HAS ANYTHING ELSE TO SAY. >> CAN I OFFER

SOMETHING. >> ROCHA GARCIA: SURE. >> SO CERTAINLY, THE PROPOSAL ON THE TABLE IS TO COST COVER OUR EXPENSES RIGHT NOW.

IF YOU'D LIKE US TO LOOK AT ADDITIONAL RESOURCES, FOR EXAMPLE, ADDING DEVELOPMENTAL SERVICES AND/OR CODE ENFORCEMENT STAFF, I WOULD RECOMMEND MAYBE THAT THAT'S AN APPROPRIATE DISCUSSION THROUGH THE BUDGET PROCESS THIS SUMMER, SO QUITE POSSIBLY, WE COULD INCREASE THE FEE TODAY OR WITH THIS PROCESS, BUT IF WE WANT TO INCREASE OUR EXPENSES AND THEN RELOOK AT THAT, THAT MAY BE SOMETHING MORE APPROPRIATE FOR THE BUDGET PROCESS THIS SUMMER. SO I'M JUST OFFERING

THAT AS SOMETHING TO CONSIDER. >> COURAGE: RIGHT.

>> BUT, AGAIN, THIS PROPOSAL IS TO COST RECOVER -- WE'RE NOT COST RECOVERING TODAY THE APPROVED RESOURCES WE HAVE.

SO I DON'T KNOW IF THAT HELPS OR DOESN'T, BUT THAT'S WHAT I WOULD

OFFER. >> ROCHA GARCIA: THANK YOU, MICHAEL.

AND THAT'S WHY I WAS ASKING THE QUESTION ABOUT THE LLCS BECAUSE I FEEL LIKE THEY SHOULD BE CHARGED MORE, BUT I'M TRYING TO FIND, AGAIN, THE BALANCE, AND I JUST WANT TO MAKE SURE THAT I ASKED ALL THE QUESTIONS.

COUNCILWOMAN CASTILLO. >> CASTILLO: THANK YOU, CHAIR. I WOULD LIKE TO MOVE TO INCREASE THE SHORT-TERM RENTAL FEE FOR TYPE 1 PERMITS .

>> COURAGE: I SECOND THAT MOTION. >> CAN I ASK A QUESTION.

WHEN YOU SAY KEEP IT AT $100 A YEAR OR $100 EVERY THREE YEARS, WHICH

IT IS OR $100 A YEAR. >> CASTILLO: YEAH. SO THE $100 PER YEAR.

>> I SEE WHAT YOU'RE SAYING. >> CASTILLO: SO OVER THE THREE

YEARS, IT'S THE THREE ONE DOLLARS. >> I SEE WHAT YOU'RE

SAYING. THANK YOU. >> ROCHA GARCIA: COUNCILMAN

COURAGE. >> COURAGE: THANK YOU. I BELIEVE THAT'S IN ORDER BECAUSE I THINK WE NEED TO HAVE BETTER ENFORCEMENT AND MORE ENFORCEMENT, AND IF WE'RE GOING TO HAVE CODE COMPLIANCE OFFICERS ABLE

[01:35:03]

GOT 8, THEN IT WOULD BE 1 OUT OF 8; IS THAT CORRECT? >> YES.

>> COURAGE: BUT IF AN INDIVIDUAL HAS A HOUSE AND THEY WANT TO DO A TYPE 1 SHORT TERM RENTAL, THEY

COULD DO THAT ON THAT STREET TOO; RIGHT. >> ABSOLUTELY.

>> COURAGE: AND THEN IF SOMEBODY ACROSS THE STREET, RIGHT ACROSS THE STREET WANTS TO GO AHEAD AND PUT A SHORT TERM RENTAL TYPE 2, THEY COULD DO THAT BECAUSE IT'S A DIFFERENT BLOCK FACE, IT'S

ACROSS THE STREET. >> THAT'S CORRECT. >> COURAGE: SO THEORETICALLY, THE WAY WE HAVE IT STRUCTURED RIGHT NOW, YOU COULD HAVE 2, 3, 4, SHORT TERM RENTALS ON ONE BLOCK, ONE STREET. AND 3 AND 4 ON THE NEXT BLOCK.

THREE AND 4 ON THE NEXT BLOCK. WE HAVE NO REAL UNDERSTANDING OF HOW EXPANSIVE THIS COULD BE, PARTICULARLY BY ALLOWING SHORT TERM RENTALS TO GO AHEAD AND START HAVING ONE ON EVERY BLOCK, ON BOTH SIDES OF THE BLOCK, BLOCK AFTER BLOCK. IT HAS A VERY ADVERSE EFFECT ON NEIGHBORHOODS. AND IT'S JUST A BUSINESS.

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

SAY. >> ROCHA GARCIA: THANK YOU. I THINK THE CITY ATTORNEY'S OFFICE WANTS TO RESPOND. AND THEN YOU'RE NEXT.

>> THANK YOU, CHAIR, I WANT TO REITERATE NOW THAT THE MOTION HAS BEEN MADE STRICTLY TO INCREASE THE PERMITTING FEES.

YOU CAN INCREASE THE FEE, BUT IT STILL MUST BE TIED TO DATA THAT WOULD SHOW A REASONABLE CORRELATION BETWEEN WHAT THE FEE IS THAT'S CHARGE AND THE REGULATION -- AND THE NEEDS FOR THE REGULATIONS, IN OTHER WORDS THE COST RECOVERY. SO, YOU KNOW, THE ISSUES THAT YOU'RE RAISING, COUNCILMAN COURAGE, ARE LEGITIMATE ISSUES WITH RESPECT TO THE NEED FOR MORE INSPECTION AND OFFICERS AND WHATNOT, BUT THAT WOULD NEED TO BE CALCULATED IN A WAY THAT WOULD SUPPORT THE ACTUAL DOLLAR AMOUNT

THAT YOU'RE ASKING TO RAISE THE FEE TO. >> COURAGE: MAY I, MADAM, CHAIR? I'D LIKE MIKE TO KIND OF HELP ANSWER THIS. HOW MANY SHORT TERM

RENTALS ARE REGISTERED WITH THE CITY RIGHT NOW? >> 2900.

>> COURAGE: AND HOW MANY DO WE SUSPECT ARE NOT REGISTERED BUT ARE OPERATING IN THE CITY, IN

ADDITION TO THOSE 2900. >> ABOUT 1,000. >> COURAGE: SO WE'RE TALKING ABOUT 33% ADDITIONAL RESPONSIBILITY WE'RE GOING TO BE TAKING ON, SO I THINK THAT VERY MUCH JUSTIFIES ASKING FOR AN INCREASED FEE. AND I WOULD SAY IF IT'S BASED ON DATA AND BASED ON FACTS, WE PUT THIS FEE IN PLACE, AND IF WE FIND OUT WE ARE COLLECTING MORE MONEY THAN WE SHOULD AFTER WE EXPAND THE SERVICES WE NEED TO TO MAKE SURE THEY'RE OPERATING RIGHT, WE CAN ALWAYS GO BACK AND REDUCE IT. SO, YOU KNOW, I THINK THERE'S GOING TO BE AN EXPANSION ON THIS PROGRAM.

1,000 OR MORE ADDITIONAL UNITS WE HAVE TO MONITOR OR TAKE CARE OF.

AND SO I THINK IT'S VERY MUCH IN ORDER TO MAKE SURE WE'LL DO OUR COST RECOVERY, EVEN IF WE'RE DOING IT A LITTLE BIT UP FRONT, BUT WE CAN ALWAYS REDUCE IT IN A YEAR OR TWO IF WE'VE COLLECTED HALF A MILLION DOLLARS

[01:40:04]

>> ROCHA GARCIA: THANK YOU COUNCILMAN COURAGE. COUNCILMEMBER VIAGRAN.

>> VIAGRAN: THANK YOU. MIKE, YOUR DEPARTMENT WILL BE POPULAR DURING BUDGET. SO GET READY. THE ONE THING IS WE STILL HAVE, AS CITY COUNCIL, THE ABILITY TO SAY NO IN ZONING.

AND THAT IS WHAT I HAVE DONE WITH SOME PEOPLE THAT HAVE COME IN AND WANTED TO DO SHORT TERM TYPE 2. SO I WOULD LIKE TO SEE KIND OF THE -- AND I KNOW I'M ALWAYS ASKING YOU IF YOU CAN HELP ME FIND THOSE THAT -- THE ONES OPERATING ILLEGALLY.

BUT WE DO NEED TO FIND -- IF I COULD GET THE INFORMATION FOR DISTRICT 3 SPECIFICALLY WHERE WE'RE DOING IT. BUT IF YOU HAVE AN ACTIVE NEIGHBORHOOD ASSOCIATION AND IF YOU HAVE TIER 1, WHICH I KNOW IS SITTING THERE, THEY'LL TELL YOU NOT TO GIVE YOU THE ZONING FOR STRS. SO I THINK WE NEED TO LOOK AT THAT CURRENT ZONING, I THINK IT'S PROBABLY SOMETHING WE NEED TO DISCUSS BECAUSE I FULLY DO NOT ANTICIPATE THESE 1,000 OPERATORS THAT HAVEN'T REGISTERED OR AREN'T PERMITTING TO ACTUALLY BE ABLE TO GET THEIR PERMIT. SO I'M ALL FOR HAVING BUDGET DISCUSSIONS, BUT RIGHT NOW I THINK COUNCILWOMAN CASTILLO HAS PUT FORWARD A MOTION I CAN REALLY WORK WITH BECAUSE I THINK THE CONCERN FOR ME IS THE TYPE 2, AND IDENTIFYING OUR TYPE 1S AND GETTING THEM THE HELP THEY NEED. SO I LOOK FORWARD TO SUPPORTING THIS, AND I LOOK FORWARD TO SEE HOW WE CAN GET THE COMMITTEE TO TOGETHER TO ADDRESS SOME OF THOSE OTHER ISSUES THAT COME FORWARD WHEN YOU HAVE A SIGNIFICANT AMOUNT OF TYPE 2STRS. SO THANK YOU.

THAT'S ALL I WANTED TO REMIND EVERYBODY. WE CAN SAY NO AT ZONING, AND IF THEY'RE NOT OPERATING WITH A PERMIT, IT'S PROBABLY BECAUSE THEY DON'T HAVE THE ZONING TO OPERATE. THANK YOU.

>> ROCHA GARCIA: AND I THINK THERE'S TWO RESPONSES WITH THAT. WE'LL START WITH MIKE.

>> COUNCILWOMAN, THANK YOU. I KNOW IT -- IT'S NOT A ZONING ISSUE, PER SE. TYPE 1S AND TYPE 2S ARE ALLOWED BY RIGHT IN SINGLE FAMILY RESIDENTIAL ZONE. YOU MIGHT BE REFERRING TO -- AND WE CAN CERTAINLY HAVE THIS CONVERSATION AFTER.

THE ILLEGAL ONES, WE SUSPECT MANY ARE OPERATING ILLEGALLY BECAUSE THEY DON'T MEET THE DENSITY REQUIREMENT, WHICH IS HOW MANY YOU CAN HAVE ON THAT BLOCK FACE, COUNCILMAN, YOU REFERENCED THAT A LITTLE BIT. SO THAT GOES THROUGH THE SPECIAL EXCEPTION PROCESS TO BE AWAY, BUT THEY HAVE TO ASK SPECIAL PERMISSION FOR THAT, IT'S AN OPEN PUBLIC HEARING, AND THE BOARD CONSIDERS, LIKE, WHAT ARE THE SPECIAL CRITERIA. SO I THINK MAYBE, COUNCILMAN, WE CAN HAVE A -- I THINK I KNOW WHAT YOU'RE TALKING ABOUT, BUT WE COULD CERTAINLY MAYBE SIDE BAR ON THAT A LITTLE BIT SO WE GET THE TERMS -- WE'RE ON THE RIGHT TERMS. SO THANK YOU.

>> ROCHA GARCIA: YES, MA'AM, GO AHEAD. >> I JUST, ONCE AGAIN, WANTED TO ADD MORE CONTEXT TO WHAT WE'RE SEEING FROM OUR OFFICE.

IT'S NOT NECESSARILY JUST, YOU KNOW, A DOLLAR AMOUNT THAT YOU WANT TO IMPLEMENT TO PERHAPS OFFSET THE OVERALL NUMBER OF SHORT TERM RENTALS IN A PARTICULAR AREA OR DISINSENT VISE CERTAIN TYPES AND WHATNOT. NO MATTER WHAT THE FEE IS YOU CHARGE, THERE MUST BE A CORRELATION BETWEEN THAT DOLLAR AMOUNT AND THE REASONABLE COST ASSOCIATED WITH OPERATING THE PROGRAM OR THE REGULATION THAT'S IN PLACE. SO THERE WOULD NEED TO BE REASONING BEHIND, YOU KNOW, SORT OF LEAVING THE $100 AMOUNT FOR THE TYPE 1S AND INCREASING THE TYPE 2S TO $300. AND SO WHATEVER THE DOLLAR AMOUNT, THE ANALYSIS HAS TO BE, WELL, HOW DOES THAT RELATE TO THE NEEDS OF THE CITY WITH RESPECT TO THE FUNDS NECESSARY TO OPERATE THAT PARTICULAR PROGRAM OR TO HAVE THAT REGULATION IN PLACE.

>> ROCHA GARCIA: THANK YOU. SO WE HAVE ONE MORE COUNCILMEMBER, I THINK SHE'S GOING TO ASK SOME QUESTIONS REGARDING THAT, BUT I HAVE A CLARIFYING QUESTION. SINCE THE MOTION WAS MADE TODAY TO INCREASE IT TO $325, AND IF WE MOVE FORWARD TO TAKE THIS TO COUNCIL AND THEN YOU ALL FIND THAT IT'S LOWER, LIKE IT'S A $300 INSTEAD OF $325 RECOMMENDATION AND YOU ALL JUSTIFY THAT, THEN AT THE COUNCIL, THEN WE COULD ALWAYS CHANGE THE MOTION THAT WAS MADE BY THIS COMMITTEE ANYWAYS,

AS LONG AS YOU ALL HAVE TIME TO DO THE RESEARCH. >> YES, THAT'S CORRECT.

>> ROCHA GARCIA: TO KEEP US IN LINE. >> THE FULL COUNCIL WOULD STILL HAVE THE OPPORTUNITY TO VET OUT THE MOTION AND TAKE WHATEVER ACTION THEY CHOOSE TO TAKE AT THAT TIME.

>> ROCHA GARCIA: GOT IT. THANK YOU. AND SO COUNCILWOMAN

CASTILLO. >> CASTILLO: THANK YOU. CHAIRWOMAN.

[01:45:04]

22% CONTRIBUTION TO REGISTRATION SOFTWARE AND ENFORCEMENT SOFTWARE NEEDED TO IMPLEMENT THE SHORT TERM RENTAL ORDNANCE IS ROUGHLY $1 MILLION.

SO THOSE ARE SOME OF THE NUMBERS, AND I BELIEVE THESE ARE ROUGHLY CONSERVATIVE WHEN WE LOOK AT THE OVERALL IMPACT AND THE POTENTIAL COST FOR DHS AND NHSD TO NAVIGATE THE DISPLACEMENT PIECE, RIGHT, WHEN FOLKS WANT TO EVICT TENANTS TO CONVERT IT TO SHORT TERM RENTAL TYPE 2. SO THIS IS A BIT OF THE JUSTIFICATION FOR THE NUMBER. BUT I WANTED TO SHARE THAT IF, THROUGH THE PROCESS -- WHILE THIS GOES TO A SESSION YA'LL FIND DIFFERENT NUMBERS OPEN TO HAVE THAT CONVERSATION, BUT FOR NOW, THIS IS THE AMENDMENT.

THANK YOU. >> ROCHA GARCIA: THANK YOU COUNCILWOMAN CASTILLO.

COUNCILMAN COURAGE. >> COURAGE: YES. I'M SUPPORTIVE OF THE MOTION. IT COULD BE SOMETHING, THOUGH, THAT WE DELAY IMPLEMENTATION UNTIL AFTER THE BUDGET SO THAT WE HAVE TIME TO INCLUDE IN THE BUDGET THE ADDITIONAL COST THAT WE THINK WE WOULD NEED TO IMPLEMENT THE PROGRAM, AND THEN, YOU KNOW, IN SEPTEMBER OR OCTOBER OR, YOU KNOW, THEN PUT IT IN THERE. SO IF WE KNOW WE WANT TO HAVE MORE CODE COMPLIANCE OFFICERS WORKING NIGHTS TO BE ABLE TO GO OUT AND TRACK DOWN THESE PARTIES OR THESE BIG EVENTS OR MAKE SURE PEOPLE ARE FOLLOWING THE RULES, THINGS OF THAT NATURE, IF IT'S GOING TO BE ANOTHER 2, 3, OR 4 PEOPLE WE ADD TO THE BUDGET TO DO THAT, AND ANOTHER 300,000 OR 400,000, WE ADD ALL OF THESE COSTS TOGETHER, AND THEN MAKE THE DECISION THEN BECAUSE WE DON'T HAVE TO MAKE IT TODAY, DO WE, MIKE, I MEAN AS A COUNCIL, IT'S

STILL IN PLAY. >> YEAH. THE CURRENT ORDNANCE IS THERE. WE'RE RECOMMENDING NOT JUST THE PERMIT FEE, THE

OTHER ONE. >> COURAGE: RIGHT. >> SO WE THINK ALL OF THEM WOULD BE HELPFUL. SO IF YOU WOULD DELAY IT -- I -Y CONSIDER DELAYING ONLY THE PERMIT FEE ISSUE AND EVERYTHING ELSE WE MOVE FORWARD WITH AT THIS

TIME. >> COURAGE: YEAH. >> THAT MIGHT BE A

RECOMMENDATION. I DON'T KNOW. >> COURAGE: YEAH.

THANK YOU. >> ROCHA GARCIA: ALL RIGHT. COUNCILMAN, DO YOU WANT TO MAKE THAT IN THE FORM OF A MOTION SO THAT WE COULD VOTE FOR THE DE DELAY? THAT WOULD MAKE THAT THE -- HE E A SECONDARY MOTION?

>> COURAGE: YEAH, WE DO. >>

WELL. >> COURAGE: WELL, I THOUGHT HER MOTION WAS FOR EVERYTHING INCLUDED, BUT SHE DID JUST MENTION THE AMOUNT OF MONEY FOR INCREASING.

SO IF IT'S IN ORDER, I'LL MAKE A MOTION TO APPROVE THE PLAN THAT'S BEEN PRESENTED FOR RECOMMENDATION TO THE CITY COUNCIL FOR THEIR ACTION TO THE EXCLUSION OF THE FEES, WHICH WE WOULD LIKE TO HOLD IN

ADVANCE AND BRING TO THE COUNCIL AT A LATER TIME. >> ROCHA GARCIA: DID WE GET THAT

RIGHT? >> DO YOU MIND IF I STATE WHAT I THINK THE

MOTION IS? >> ROCHA GARCIA: YEAH. GO AHEAD.

>> SO COUNCILMEMBER COURAGE MOVED TO FORWARD STAFF RECOMMENDATION TO

FULL CITY COUNCIL EXCEPT FOR THE PERMIT FEES. >> ROCHA GARCIA: OKAY.

PERFECT. SO LET'S TAKE A VOTE ON THAT.

OR COUNCILMEMBER VIAGRAN. DID YOU HAVE A QUESTION

BEFORE THAT? >> VIAGRAN: NO. I THINK WE NEED TO MOVE FORWARD WITH THE PERMIT FEES WE CURRENTLY HAVE. SO I WILL NOT BE VOTING -- I AM COMPLETELY CONFUSED BECAUSE I THOUGHT THE MAIN MOTION WOULD BE TO MOVE FORWARD WITH STAFF RECOMMENDATIONS AND THEN THE AMENDED MOTION WOULD BE TERRY'S MOTION. SO I -- YEAH.

>> ROCHA GARCIA: AND COUNCILMEMBER, I JUST REALIZED THAT COUNCILMAN COURAGE DOES NOT HAVE A SECOND ON HIS MOTION. SO... OKAY.

THAT ENDS DISCUSSION. SO WE'LL TAKE UP THE MOTION NOW ON THE TABLE

BY COUNCILMEMBER CASTILLO. >> I JUST WANT TO CLARIFY. ARE WE -- WITH THE MOTION B, AND I KNOW YOU'RE GOING TO CLARIFY IT, BUT I JUST WANT TO MAKE SURE.

WE HAVE THE ABILITY TO MOVE THE RECOMMENDATIONS FORWARD TO FULL COUNCIL FOR CONSIDERATION, BUT THE CURRENT FEE THAT'S IN EFFECT RIGHT NOW WOULD REMAIN THE SAME, PENDING ANY CHANGES BY COUNCIL?

>> SO TO MOVE FORWARD. >> ROCHA GARCIA: YOUR MICROPHONE IS OFF.

>> CASTILLO: TO MOVE FORWARD WITH STAFF'S RECOMMENDATION WITH AMENDMENT FEES FOR TYPE 2 SHORT TERM RENTALS TO $325 PER YEAR AND KEEP THE TYPE 1 AT $100 PER YEAR.

>> OKAY. THANK YOU. >> ROCHA GARCIA: OKAY.

THEN WE WILL TAKE -- WE WILL VOTE ON THAT. AND THEN, AGAIN, STAFF CAN FULLY COME AND RECOMMEND BASED ON -- YOU HAVE A LITTLE BIT OF

[01:50:01]

WHEN DOES THIS GO TO COUNCIL AGAIN? OR WHEN WILL IT?

WE HAVEN'T. >> THE PROPOSAL WAS WE WERE ASKING FOR APPROVAL TODAY AND THEN WE WOULD SCHEDULE IT LIKELY IN MAY.

>> ROCHA GARCIA: PERFECT. >> WE WOULD NEED IT TO FULL CITY COUNCIL IN A

FEW WEEKS. >> ROCHA GARCIA: PERFECT. SOUNDS GOOD.

SO WE'LL TAKE THE MOTION ON THE TABLE. SO ALL IN FAVOR SAY AYE.

SORRY? OH THERE WAS A SECOND. YES.

>> OKAY. THAT WAS JUST A CLARIFIED MOTION.

SO WE'LL GO WITH THE ORIGINAL MOTION, SECOND IT; CORRECT?

>> ROCHA GARCIA: YES. CORRECT. ALL RIGHT.

ALL IN FAVOR PLEASE SAY AYE.

ANY OPPOSED? ANY ABSTENTIONS? OKAY.

MOTION CARRIES. THANK YOU. THANK YOU VERY MUCH.

ALL RIGHT, YOU ALL. WE HAVE COME TO OUR FINAL ITEM, AND THAT'S A BRIEFING AND POSSIBLE ACTION ON SOURCE OF INCOME PROTECTION IN RENTAL PROPERTIES FOR VETERANS. IS THAT -- JUST ONE?

>> ROCHA GARCIA: ARE YOU TALKING ABOUT THE CONSENT ITEM? WE DID THAT, WE DID THAT AT THE BEGINNING. OKAY. THANK YOU.

THAT'S OKAY. ALL RIGHT. THANK YOU.

AND THIS ITEM WILL BE PRESENTED BY VERONICA GARCIA.

SO VERONICA, THANK YOU SO MUCH. THE FLOOR IS YOURS.

>> GOOD MORNING, MADAM CHAIR AND COUNCILMEMBERS. I'M VERONICA GONZALEZ.

I'M THE DIRECTOR OF THE HOUSING DEPARTMENT. THIS MORNING WE HAVE BRIEFING ON THE SOURCE OF INCOME PROTECTIONS. BEFORE WE BEGIN, I WANT TO ACKNOWLEDGE THAT COMMUNITY GROUPS HAVE SHOWN AN INTEREST IN THIS TOPIC. I ALSO WANT TO THANK EVERYONE WHO GAVE COMMENTS THIS MORNING.

TODAY'S ITEM DOES NOT REQUIRE ACTION, BUT RATHER PROVIDES INFORMATION FOR DISCUSSION PURPOSES. AS AN OVERVIEW, SOURCE OF INCOME PROTECTIONS ENSURES QUALIFIED RENTSERS DO NOT GET TURNED AWAY FROM HOUSING OR LOSE HOUSING BASED ON INCOME SOURCE. THIS COULD REFER TO ANY TYPE OF LOSS OF INCOME.

CHILD SUPPORT, SOCIAL SECURITY, OR ALAMO ANY. MOST FREQUENTLY THOSE ARE SOUGHT FOR HOUSING VOUCHERS, INCLUDING ( INDISCERNIBLE ) WHICH I'LL DISCUSS LATER AS WITH ANY ISSUE REGARDING FOR HOUSING LOSS, WE ALSO HAVE TO BE AWARE OF OUR STATE LAWS.

FOR BACKGROUND, THE STATE OF TEXAS IS VERY CLEAR ON WHAT CITIES CAN OR CANNOT DO REGARDING SOURCE OF INCOME. STATE LAW PREVENTS CITIES FROM ADOPTING BLANKET SOURCE OF INCOME PROTECTIONS, HOWEVER, IT DOES ALLOW FOR SOURCE OF INTEREST PROTECTIONS IN -- TO ENCOURAGE MILITARY VETERANS CITYWIDE.

SAN ANTONIO HAS ALREADY TAKEN STEPS TO ENSURE RENTERS HAVE ACCESS TO HOUSING REGARDLESS OF THEIR LAWFUL SOURCE OF INCOME. AMONG THOSE ARE THE HOUSING INCENTIVE POLICY ADOPTED IN JUNE, 2021, AND THE SAN ANTONIO HOUSING TRUST RESIDENT TENANT POLICY ADOPTED IN MARCH, 2021. THE STATE RECENTLY PASSED A LAW IN 2023 THAT PROHIBITS HOMEOWNER ASSOCIATIONS FROM DENYING PROSPECTIVE RENTERS BASED ON THEIR SOURCE OF INCOME. IN 2013, SAN ANTONIO BASSED A MORE INCLUSIVE NONDISCRIMINATION ORDNANCE IN SEVERAL AREA, INCLUDING HOUSING. PEOPLE ARE PROTECTED FROM BEING DISCRIMINATED AGAINST ON THE BASIS OF THEIR RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, GENDER, DISABILITY, FAMILIAL STATUS, NATIONAL ORIGIN, VETERAN STATUS, OR AGE. I'LL NOTE HERE THAT VETERAN STATUS AND AGE ARE UNIQUE TO THE CITY OF SAN ANTONIO. IN ADDITION TO LOCAL ORDNANCES, WE HAVE SEVERAL COMMUNITY EFFORTS. THE CITY HAS A NUMBER OF INITIATIVES TO SUPPORT RENTERS THAT INTERSECT CONVERSATIONS AMONG THEM ARE THE STRATEGIC HOUSING IMELEMENTATION PROGRAM, WHICH NAMES INCREASING ACCESS TO MORE PROPERTIES TO RESIDENTS WHO USE VOUCHERS AS A GOAL, WHICH PASSED IN MAY, 2023 TO AFFIRM LOCAL, STATE, AND FEDERAL PROTECTIONS. IT'S LED TO A RIGHTS AND RESPONSIBILITIES CAMPAIGN FOR RENTERS AND HOUSING PROVIDERS.

WE RECENTLY RELEASED SEVERAL VIDEOS DEVELOPED EXPLAINING RIGHTS AND RESPONSIBILITIES.

THE FIRST VIDEO FOCUSED ON RIGHTS AND RESOURCES, RECEIVED OVER 21,000 VIEWS FOR THE SPANISH VERSION ALONE. ON THIS SLIDE, YOU CAN SEE INFORMATION ON HOUSING VOUCHERS PROVIDED BY OPPORTUNITY HOME. AS I MENTIONED EARLIER, THE STATE'S LANGUAGE ALLOWS PROTECTIONS FOR ALL VETERANS, ALL INCOME SOURCES. IN SAN ANTONIO, THERE ARE APPROXIMATELY 159,000 VETERANS ACROSS -- ACCORDING TO TO THE 2022 CENSUS DATA. THEY CAN APPLY FOR ANY TYPE

[01:55:04]

FINALLY, THERE IS A SPECIALTY VOUCHER CALLED A VETERAN AFFAIRS SUPPORTIVE HOUSING OR VASH VOUCHER. THEY'RE TARGETED TOWARDS HOMELESS VETERANS WITH CASE MANAGEMENT AND CLINICAL SERVICES IS PROVIDED BY THE VA.

SINCE THE VASH PROGRAM HAS CASE MANAGEMENT AS WELL AS SET ASIDE UNITS AT DESIGNATED PROPERTIES, IT HAS QUICK RELEASE TIME FOR THE GENERAL HOUSE PROGRAM.

SUPPORTIVE SERVICES SUCH AS RENT EDUCATION, TRILLIONS, MOBILITY, AND STRONG PARTNERSHIPS HELP VETERANS. THEY SHOW THAT WITH SUPPORT THEY CAN LEAD TO BETTER OUTCOMES FOR ALL PEOPLE ENSURE HOUSING WHEREVER THEY GO AS YOU KNOW, THE VOUCHER PROGRAM IS FEDERAL, AND IT MAY COME WITH COMPLICATED PROCESSES.

SOME OPPORTUNITIES FOR IMPROVEMENT THAT MAY HELP WITH VOUCHER ACCEPTANCE MAY INCLUDE RETAINING EXISTING HOUSING PROVIDERS WHILE RECRUITING NEW ONES, EXP EXPLORING INCENTIVE PROGRAMS INCLUDING RELAUNCHING A PREVIOUS PROGRAM CALLED LANDLORD INCENTIVE PROGRAM THAT OPPORTUNITY HOME OFFERED $500 FOR NEW HOUSING PROVIDER PARTICIPANTS, AND REDUCING STIGMA THAT SOMETIMES A COMPANY'S USING A VOUCHER. OPPORTUNITY HOME HAS WORKED HARD TO ENSURE POSITIVE EXPERIENCES FOR VOUCHER HOLDERS AND PEOPLE WHO RENT THEM.

THIS INCLUDES STREAMLINING THE OPPORTUNITY OF HOME INSPECTION PROCESS TO BE COMPLETE WITHIN THREE DAYS, A HUGE BENEFIT AND INCENTIVE FOR HOUSING PROVIDERS IS THEY'RE GUARANTEED RENTAL INCOME FOR A PORTION OF THE PAYMENT.

THEY'VE PROVIDED ON SIGHT ELIGIBILITY EMPLOYMENTS WITH LOCAL HOMELESS SERVICE PROVIDERS INCLUDING HAVEN FOR HOPE AND COORDINATED WITH HOUSING PROVIDERS ON RAPID REHOUSING. LASTLY THEY HOSTED PROPERTY OWNERS TO CONNECT WITH VOETSCHER HOLDERS LOOKING FOR HOUSING AS A PART OF THEIR EDUCATIONAL OUTREACH BEFORE I CONCLUDE, I WANT TO HONOR OUR ENTIRE MILITARY COMMUNITY, THEIR FAMILY MEMBERS, THE SERVICE THAT CALLS SAN ANTONIO HOME. THANK YOU.

AND I'M AVAILABLE FOR ANY QUESTIONS YOU MAY HAVE. >> ROCHA GARCIA: THANK YOU SO MUCH. AND I ALSO WANT TO TAKE THE OPPORTUNITY -- ALTHOUGH HE'S NOT HERE -- TO HE HELP RICHARD LEAD THE DECISION ON THIS. AND WE'RE MILITARY CITY USA, AND I SEE GENERAL IN THE AUDIENCE. THANK YOU FOR BEING HERE.

DISTRICT 4 IS HOME TO MANY VETERANS AND THEIR FAMILIES.

SO I KNEW THIS WAS IMPORTANT TO DISCUSS. WE HAVE TWO MEMBERS OF MY STAFF WHO HAVE WORKED REALLY CLOSELY WITH RICHARD, AND THAT'S EDWARD AND GENE RODRIGUEZ, AND GENE IS A LET VAN, AND I WANTED TO ACKNOWLEDGE THAT WE ALSO HAVE A VETERAN ON MY TEAM THAT'S WORKING AND LOOKING INTO THIS AS WELL. BUT I DO THINK THAT WE NEED TO DO A LITTLE BIT MORE TO MAKE SURE THAT OUR VETERANS ARE TREATED FAIRLY.

I DID LISTEN TO THE CONVERSATIONS EARLIER FROM THE PUBLIC COMMENT, AND ALTHOUGH WE CAN'T RESPOND DIRECTLY, I SEE A THEME. AND SO I DO SEE THAT OPPORTUNITY HOME WAS HERE, IS PROBABLY STILL HERE LISTENING IN.

I'D LOVE TO SEE IF AN NHSD CAN FACILITATE DISCUSSION IN REGARD TO THOSE OPPORTUNITY AND STREAMLINING THE ADMINISTRATIVE PROCESS AND TRYING TO SEE WHAT IT IS WE CAN DO THERE. AND SO THAT'S ONE. THE OTHER THING IS I THINK THAT THE HOUSING COMMISSION COULD REALLY HELP US WITH THIS, AND I KNOW THAT THE CHAIR AT ONE TIME HAD TALKED ABOUT THIS. AND I WOULD LIKE TO SEE HOW WE COULD GET THEIR HELP AS WELL. SO AS WE CONSIDER NEXT STEPS, JUST GETTING EVERYBODY, AS MANY PEOPLE AS POSSIBLE INVOLVED AND IN AT THE TABLE, AND, AGAIN, I DO RESPECT THE FACT THAT WE HAD A FEW SMALL ZONERS COME AND PRESENT THEIR IDEAS. BUT, AGAIN, MAYBE WE CAN CREATE, I WOULD SAY -- I WOULDN'T CALL IT A TASK FORCE, BUT SOME SORT OF REPRESENTATIVE GROUP, I THINK IS DEFINITELY IMPORTANT IN MOVING FORWARD. BUT I'D LOVE TO SEE WHAT MY COLLEAGUES HAVE TO SAY ABOUT THIS, AND I DO WANT TO JUST REITERATE MY SUPPORT FOR YOUR OPPORTUNITIES, ESPECIALLY. I'M GLAD THAT YOU ALL HAVE THAT IN THERE. AND I JUST WANT TO GIVE A SHOUT OUT TO VERONICA AND THE TEAM BECAUSE I'M -- I GUESS I HEARD YOU INCORRECTLY. I THOUGHT THAT THE ENGLISH VIDEO HAD, LIKE, 100 VIEWS AND THAT THE SPANISH ONE HAD 2100, AND YOU JUST SAID 21,000. SO THAT'S HUGE TO THE POINT THAT IT'S WORKING; RIGHT?

[02:00:05]

OR WAS IT 2100? >> YOU'RE RIGHT, IT'S 21,000 VIEWS AND COUNTING FOR THE SPANISH VERSION, SO IT'S A REAL TESTAMENT THAT THE -- WHEN WE HAVE THE INFORMATION IN AN EASILY DIGESTIBLE MANNER, THE COMMUNITY CERTAINLY DOES RESPOND AND FIND IT VALUABLE, AND WE ARE LOOKING TO SEE HOW WE CAN ENSURE THAT ALL OF THE RENT WISE VIDEO SERIES, A TOTAL OF 7 VIDEOS WHEN WE'RE DONE IN ENGLISH, AND THEN OF COURSE THE SAME VIDEOS IN SPANISH AS WELL, HOW WE GET THEM MORE BROADLY SHARED SO WE CAN HAVE THAT SAME LEVEL OF SUCCESS ACROSS THE WHOLE SERIES.

>> ROCHA GARCIA: OKAY. WONDERFUL. THANK YOU SO MUCH.

WE APPRECIATE IT. I'LL START OFF WITH MY COLLEAGUES AND I'LL START WITH COUNCILWOMAN CASTILLO. DID AST CAST THANK YOU CHAIRWOMAN AND VERONICA FOR THE PRESENTATION AND AGAIN TO GARCIA AND HER TEAM FOR THIS ITEM. I KNOW RICHARD WAS VERY PERSISTENT ON HAVING THIS CONVERSATION TO GET VETERANS HOUSED. WE WHEN WE LOOK AT THE 2023HUD TIME POINT COUNT. IT SHOWED TEXAS HAD A ONE OF THE LARGEST JUMPS OF VETERANS WITH HOMELESSNESS FROM 2022 TO '23. AND SAN ANTONIO AND DALLAS ACCOUNTED FOR MORE THAN 1/3 OF THAT INCREASE, AND I WANTED TO THANK RACHEL TUCKER FROM OUR TEAM WHO HELPS FIELD CALLS ON HOUSING ISSUES AND OFTENTIMES, THE MAJORITY OF THOSE FOLKS LOOKING FOR HOUSING OR THAT WE'RE TRYING TO RELOCATE ARE VETERANS, AND I WANTED TO THANK OPPORTUNITY HOME FOR THEIR INITIATIVE AND NAVIGATING THE HUD PROCESS AND THE PARAMETERS THAT YOU ALL HAVE TO OPERATE WITHIN.

THERE'S JUST SUCH A HIGH NEED, AND JUST -- I'M JUST LOOKING FORWARD TO THE CONTINUED DISCUSSION. THANK YOU, CHAIRWOMAN.

>> ROCHA GARCIA: THANK YOU, COUNCILMAN COURAGE. >> COURAGE: THANK YOU, CHAIR.

I THINK THAT WHAT WE'RE HEARING AND A LOT OF US RECOGNIZE, THERE'S A REAL BARRIER FOR PEOPLE USING VOUCHERS, WHETHER THEY'RE, YOU KNOW, FEDERAL HOUSING VOUCHERS OR THE VASH VOUCHERS, AND THE BARRIER IS THE TIME IT TAKES FOR THE PROCESS TO MOVE FORWARD SO THAT A NEW TENANT CAN MOVE INTO A PROJECT, AND THE DELAY AND THE FINANCIAL HARDSHIP IT COSTS ON THE PROPERTY OWNER. AND ONE OF THE THINGS THAT I THOUGHT WE MIGHT EXPLORE IS, IS THE CITY IN A POSITION TO KIND OF BECOME A GUARANTOR FOR FUNDING FOR PEOPLE WHO ARE ELIGIBLE, WHO HAVE A VOUCHER, AND WHO HAVE GONE AND TALKED TO A PROPERTY OWNER AND THEY SAID, YES, WE'LL TAKE YOU, KNOWING IT MIGHT BE 60, 90 DAYS BEFORE THEY GET THEIR MONEY. IF THE CITY COULD BE IN A PARTNERSHIP WITH OPPORTUNITY HOMES TO UPFRONT THAT MONEY, MOVE THEM IN WITHIN TWO WEEKS OR RIGHT AFTER THE INSPECTION, AND THEN BE REIMBURSED FOR THE UPFRONT MONEY WE PUT IN. I MEAN, RIGHT NOW WE'RE GIVING PEOPLE WE MOVE IN MONTHS OF RENT, OR IF THEY'RE BEHIND WE GIVE THEM SEVERAL MONTHS WORTH OF REPRESENT TO STAY THERE.

THIS IS A SIMILAR PROCESS EXCEPT WE'D BE PARTNERING WITH OPPORTUNITY HOMES AND THEY'D BE REIMBURSING US, AND IT'S ALL WITHIN THE CONTEXT OF OUR BUDGET WE WOULD SET ASIDE AND THE BUDGET THEY KNOW THEY HAVE TO DO THAT REIMBURSEMENT.

SO I'D LIKE TO SEE US EXPLORE THAT AS A WAY OF EXPEDITING BOTH VETERANS AND ANYONE ELSE WITH A VOUCHER AND HELP OVERCOME THAT BARRBARRIER THAT PROPERTY OWNERS FEEL THEY FACE THAT WOULD PUT THEM IN A HARDSHIP. SO THAT WOULD BE A RECOMMENDATION I WOULD LIKE TO SEE OUR HOUSING DEPARTMENT DO IN

COLLABORATION WITH OPPORTUNITY HOMES THANK YOU. >> ROCHA GARCIA: THANK YOU

COUNCILMAN COURAGE. COUNCILMEMBER VIAGRAN. >> VIAGRAN: THANK YOU, CHAIR.

THANK YOU, VERONICA FOR THAT PRESENTATION. I THINK THERE WERE TWO THINGS -- AND THANK YOU FOR ALL THE SPEAKERS THAT CAME OUT AND SHARED. I THINK THERE'S TWO ISSUES THAT CAME OUT OF THIS CONVERSATION. ONE WAS OUR VETERANS AND WHAT WE'RE DOING FOR OUR VETERANS. I'M A BIG SUPPORTER OF OUR VETERAN COMMUNITY AND MILITARY FAMILIES. MY DAD SERVED IN VIETNAM.

AND I KNOW THAT WE WORKED WITH ADAPT EVENT AND OPERATION TRIAGE TO HELP VETERANS WHO HAVE HOMES THAT NEED HELP. AND SO I THINK WE NEED TO LOOK AT THE RESOURCES THAT ARE OUT THERE FOR VETERANS, AND I'M A BIG PROPONENT FOR PERMANENT SUPPORT OF HOUSING. SO IF WE DO HAVE A HOMELESS POPULATION THAT NEEDS THE WRAP AROUND SERVICES, HOW WE GET THEM PERMANENT SUPPORTING HOUSING. THE SECOND THING I HEARD IS WE NEED TO TALK TO OPPORTUNITY HOMES ABOUT THE VOUCHER PROGRAM.

I DON'T HAVE ANY IDEAS TO THE EXTENTS OF MY OTHER COUNCIL COLLEAGUES

[02:05:03]

I THINK IF IT'S A FEDERAL LEVEL, THEN WE NEED TO MAKE THIS ONE OF OUR PRIORITIES AS OUR LEGISLATIVE AGENDA GOES FORWARD, BOTH AT THE STATE AND THE FEDERAL LEVEL. SO I THINK THERE'S A LOT OF CONVERSATION TO BE HAD, VERONICA. I'M INTERESTED IN SEEING HOW WE COULD WORK WITH THE VETERAN AGENCIES THAT ARE TRYING TO HELP VETERANS ANDTE GET THEM SERVICES TO SEE HOW THEY COULD BE PART OF THIS PROCESS TOO. BUT I THINK WE -- WE NEED TO HAVE CONVERSATIONS, MOST DEFINITELY, WITH OPPORTUNITY HOMES BECAUSE I DON'T KNOW WHAT -- WHERE THEIR DELAY, BUT I KNOW THAT -- ANY MONEY THAT COMES FROM THE FEDERAL GOVERNMENT COMES WITH A LOT OF PAPERWORK. SO I WANT TO THANK YOU FOR THE PRESENTATION, AND I LOOK FORWARD TO SEEING WHAT YOU HAVE TO BRING FORWARD WITH US,

FOR US. THANK YOU. >> ROCHA GARCIA: THANK YOU COUNCILWOMAN. DO WE NEED A FORMAL MOTION TO GET THIS

CONSIDERED BY THE HOUSING COMMISSION? >> NO.

YOU COULD GIVE DIRECTIONS TO STAFF TO HAVE THOSE DIRECTIONS.

>> ROCHA GARCIA: WONDERFUL. AND THEN I SAW YOU SHAKING YOUR HEAD ON COUNCILWOMAN VIAGRAN. DO YOU WANT TO ADD ANYTHING.

>> YEAH. I WANT TO THANK YOU FOR ALLOWING ME TO COME TO THE MEETING. I DID NOT REALIZE THE GRAVITY OF THE PROBLEM GOING ON RIGHT NOW. WHAT I WOULD ASK IF MEMBERS OF COUNCIL, STAFF, WORK WITH US AT MY DEPARTMENT, THIS HAS NOT COME UP TO MY DEPARTMENT, I'M ON THE BOARD OF GI FORUM NVOP, WHICH IS NATIONAL VETERANS OUTREACH PROGRAM, WHICH SPECIFICALLY HOUSES VETERANS THAT ARE UNHOUSED, AND SO I THINK THAT'S SOMETHING THAT WE COULD LEVERAGE, AND I'M LOOKING FORWARD TO TAKING A LOOK AT SOME OF THE DELAYS. YOU KNOW, I HAVEN'T BEEN IN THE MILITARY FOR ALMOST 4 DECADES, THERE ARE A LOT OF BUREAUCRATIC PROBLEMS. SO, YEAH I'LL -- LET ME WORK WITH MEMBERS OF COUNCIL AND ALSO WITH THE STAFF, AND WE'LL SEE WHERE WE CAN GO FROM HERE.

THANK YOU. >> ROCHA GARCIA: WONDERFUL. THANK YOU SO MUCH, GENERAL. ALL RIGHT. AWESOME.

THANK YOU. THAT BRINGS US TO THE CLOSE OF OUR MEETING AT 12:07:00 P.M.

* This transcript was compiled from uncorrected Closed Captioning.