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good morning everyone.

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welcomecome to the senate

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Committee on Economic

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Development Workforce and

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tourism

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thank you all for coming today

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we're gonna start our morning

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off with Senator kirt you've

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got a study interim study on

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land banking and so just a few

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housekeeping things as we get

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moving here today this is going

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to be really informal you

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don't have to work through the

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chair we'll just have a

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conversation Senator Kirt

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I'll let you take the lead and

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we'll be cognizant of time

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because we are back to back to

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back to back today but with that

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thank you all for coming.

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welcomelcome to the senate and

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senator

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k ir t the floor is yours

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thank you very much madam

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chairir and thank you for

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putting together this lineup

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of interesting housing topics

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today I think you know we've

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come a long way and in

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understanding housing as a key

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part of our economic development

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across the state and I

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appreciate the opportunity to

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talk about it with that

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framework in mind I know that

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this topic is something that I

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filed legislation on before and

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we really felt like we needed to

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go back to to looking at the

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issue and what the structure of

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a land bank could do for our

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communities it's it's really

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an opportunity to create more

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productive uses out of

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properties and I just briefly

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want to say that this my

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interest in this topic came

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about when I got repeated phone

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calls from a senior in my

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district an elderly woman who

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was dealing with a next door

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neighbor home that had been

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boarded up for more than a

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decade and was having repeated

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problems with squatters she

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would call the police the police

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would come they could not find

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the owner to confirm whether

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these people were allowed to be

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on the property or not

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and this happened again and

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again this is a huge expense to

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our communities for police

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and fire response it's a drain

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on our neighborhoods in terms of

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safety and it can be a real

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challenge for property values

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you know vacant and abandoned

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properties can cause huge

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challenges around property

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values as not to mention

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property taxes so we're looking

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specifically at properties that

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cause big public health and

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safety risks and that challenge

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of the drain of tax dollars as

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well as the challenge that those

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properties

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around it I you know

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repeatedly talked to

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constituents who had a boarded

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up apartment complex across the

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street the man had resorted to

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mowing it himself because he was

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so tired of the vermits and

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other problems he was facing and

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it was costing the city to come

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out and do that regularly what

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can we do and one of those tools

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that we do not have as an option

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in our state right now is land

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banks which can be a short term

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solution for good outcomes for

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the community and getting

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properties back into

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private use. So I am thrilled

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to have experts at the

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readyad today to look at those

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structures and help us

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understand what's possible most

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of all I'd like to thank the

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neighborighbourhood

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housingervices of oklahoma

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that's Katrina Washington

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director gonna speak and also

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Gary Jones for organizing I

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would like to hand off to

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Katrina now please.

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thank you

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so good morning thank you for

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the opportunity to be here today

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my name's Katrina Washington I

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serve as the executive director

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of neighborighboorhood housing

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Services Oklahoma I've worked in

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affordable housing community

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development development and

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residential and commercial real

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estate for more than 30 years I

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want to use this time today to

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talk about something we

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encounter from a developer's

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perspective the practical

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barriers between identifying a

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property and actually turning

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that property into affordable

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housing we often talk about the

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need for more housing and that

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need

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is very real but increasing

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housing production is not simply

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a matter of finding money and

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finding a developer we also have

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to address the condition

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ownership title costs and

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availability of land itself.

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Next slide please

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Oklahoma needs more housing

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how to advance

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that working families seniors

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and lower income households can

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afford

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as the slide demonstrates we are

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facing a significant rental

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housing shortage in many

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Oklahoma renters are already

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spending more than 30% of their

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income on housing but what I

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particularly want to emphasize

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today is what happens before

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construction ever begins at Nhs

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we have an interested developer

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we can have a potential funding

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source we can have a

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neighborhood where housing is

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needed

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and still that project can

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stall. Why? because the pastels

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can be scattered ownership may

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be unclear they can have lanes

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delinquent taxes title problems

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demolition needs infrastructure

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issues or years of deferred

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maintenance every one of those

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issues adds time and cost so the

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question I want to ask the

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committee or everyone here to

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consider is how do we move

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difficult property into a

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productive use faster while

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maintaining transparency and

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ensuring

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that a clear there's clear

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public benefit

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you have to go to the next slide

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there we go

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So one of the first lessons we

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learned is affordable housing

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developers is that available

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land is not necessarily usable

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land. You may have ive vacant

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lots in a neighborhood but they

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may be scat scattered across

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several blocks you may need

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three adjoining parcels to make

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that development work but those

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parcels may have three different

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owners and three different sets

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of problems even after

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acquisition we may discover that

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a site requires demolition

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utility work grading

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environmental work

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or other infrastructure

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improvements now that means that

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a parcel looks inexpensive on

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paper and it can bu become very

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expensive by the time we

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actually start construction on

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those now for us as nonprofit

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affordable housing developers

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those additional costs are

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particularly important because

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every additional dollar that we

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spend getting that land ready is

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a dollar that cannot be spent

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producing or preserving housing

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that becomes even more

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challenging when we're dealing

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with distressed property.

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we sometimes hear that a vacant

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property or tax delinquent

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parcel should be easy to

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redevelop because the

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acquisition price is low now

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unfortunately that purchase

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price often is a very small part

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of our problem now there there

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can be delinquent taxes liens

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codevelopment issues multiple

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claims demolition costs clean up

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expenses security and

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maintenance costs fragmented

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ownership

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and then there's the cost of

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time

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now those issues are while those

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issues are being resolved

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somebody has to maintain that

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property

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the grass still grows buildings

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deteriorate illegal dumping can

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occur in in the neighborhoods

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can you know just decline

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now as developers we have the

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financing and construction costs

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and those continue to increase

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there's also important policy

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questions about disposition

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now if distress pro public

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property is disposed of solely

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based upon who offers the

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highest price we may

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unintentionally eliminate

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opportunities to use that

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property for affordable housing

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or another long term community

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benefit

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sometimes the greatest return to

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the community is not necessarily

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the highest price paid for that

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land

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title is another barrier and

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it's often one thats that

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doesn't receive enough attention

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now before lender investor

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government agency or nonprofit

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is going to put hundreds of tho

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or thousands and potentially

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millions into a development we

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have to have that confidence

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that we have clear and

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marketable title that becomes

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difficult when ownership is

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uncertain, taxes or liens may be

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outstanding on that property or

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property has passed through

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several generations without

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probate

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now there's something called

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heir's property and it's

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particularly important issue in

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many communities when several

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family members have ownership

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interests identifying everyone

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and obtaining the legal

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authority necessary to transfer

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that property can take some

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considerable time. During that

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period the project can't move

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forward

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financing commitments can be

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jeopardized construction costs

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can rise professional fees

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continue and in some cases an

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otherwise viable project simply

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becomes financially infeasible

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a more coordinated system for

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resolving these issues could

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make a meaning meaningful

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difference

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and that brings us to cost.

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Affordable housing development

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already operates with very

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little room for error. We have

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land costs construction costs

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financing costs insurance

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infrastructure compliance

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requirements and professional

301
00:14:37,991 --> 00:14:38,241
services

302
00:14:41,224 --> 00:14:41,474
when it takes an additional year

303
00:14:42,858 --> 00:14:43,108
or several years sometimes to

304
00:14:44,791 --> 00:14:45,041
obtain control of a property or

305
00:14:46,591 --> 00:14:46,841
resolve these title issues and

306
00:14:47,224 --> 00:14:47,474
liens that we're discussing

307
00:14:50,324 --> 00:14:50,574
we have construction price

308
00:14:52,324 --> 00:14:52,574
changes interest expenses

309
00:14:54,358 --> 00:14:54,608
increases insurance cost changes

310
00:14:55,158 --> 00:14:55,408
funding commitments can

311
00:14:55,724 --> 00:14:55,974
sometimes expire

312
00:14:58,958 --> 00:14:59,208
ultimately someone has to absorb

313
00:14:59,624 --> 00:14:59,874
that difference

314
00:15:02,791 --> 00:15:03,041
for affordable housing projects

315
00:15:04,458 --> 00:15:04,708
that usually means one of three

316
00:15:05,124 --> 00:15:05,374
things

317
00:15:08,358 --> 00:15:08,608
we need more subsidy the

318
00:15:08,991 --> 00:15:09,241
homeowner or the renter must

319
00:15:11,224 --> 00:15:11,474
absorb those higher costs or we

320
00:15:11,891 --> 00:15:12,141
produce fewer homes

321
00:15:15,058 --> 00:15:15,308
that's why reducing unnecessary

322
00:15:16,791 --> 00:15:17,041
delay is not simply an

323
00:15:18,724 --> 00:15:18,974
administrative issue it's an

324
00:15:19,358 --> 00:15:19,608
affordable housing issue

325
00:15:24,758 --> 00:15:25,008
this is where I believe the

326
00:15:26,524 --> 00:15:26,774
discussion about land banks

327
00:15:28,758 --> 00:15:29,008
becomes particularly valuable a

328
00:15:30,658 --> 00:15:30,908
land bank does not replace

329
00:15:31,224 --> 00:15:31,474
developers

330
00:15:34,458 --> 00:15:34,708
and it should not replace local

331
00:15:35,091 --> 00:15:35,341
decision making

332
00:15:38,758 --> 00:15:39,008
instead properly structured land

333
00:15:40,558 --> 00:15:40,808
bank legislation can give

334
00:15:42,358 --> 00:15:42,608
communities another tool for

335
00:15:42,991 --> 00:15:43,241
dealing with properties that the

336
00:15:44,991 --> 00:15:45,241
traditional real estate market

337
00:15:46,691 --> 00:15:46,941
has not been able to resolve

338
00:15:47,324 --> 00:15:47,574
effectively

339
00:15:49,058 --> 00:15:49,308
think about the process shown on

340
00:15:49,724 --> 00:15:49,974
this slide.

341
00:15:50,591 --> 00:15:50,841
first

342
00:15:54,724 --> 00:15:54,974
identify eligible vacant a

343
00:15:56,558 --> 00:15:56,808
abandoned tax delinquent

344
00:15:58,524 --> 00:15:58,774
foreclosure surplus property

345
00:15:59,091 --> 00:15:59,341
secondcond

346
00:16:00,958 --> 00:16:01,208
provide a mechanism to acquire

347
00:16:02,991 --> 00:16:03,241
and responsibly hold that

348
00:16:03,558 --> 00:16:03,808
property

349
00:16:07,158 --> 00:16:07,408
third and this is extremely

350
00:16:08,791 --> 00:16:09,041
important resolve the problems

351
00:16:10,991 --> 00:16:11,241
that prevent development title

352
00:16:12,991 --> 00:16:13,241
tax liens demolition maintenance

353
00:16:16,358 --> 00:16:16,608
and sight readiness oth where

354
00:16:18,558 --> 00:16:18,808
appropriate assemble parcels so

355
00:16:20,358 --> 00:16:20,608
that we are creating sites that

356
00:16:22,358 --> 00:16:22,608
can actually support that

357
00:16:24,591 --> 00:16:24,841
development and finally transfer

358
00:16:26,358 --> 00:16:26,608
those properties to qualified

359
00:16:28,358 --> 00:16:28,608
partners using transparent

360
00:16:30,758 --> 00:16:31,008
criteria that consider that

361
00:16:32,591 --> 00:16:32,841
public benefit and that last

362
00:16:33,158 --> 00:16:33,408
point you know really matters

363
00:16:36,991 --> 00:16:37,241
for affordable housing we should

364
00:16:38,758 --> 00:16:39,008
be able to consider whether the

365
00:16:42,358 --> 00:16:42,608
developer has that experience

366
00:16:44,358 --> 00:16:44,608
and financing to perform

367
00:16:44,991 --> 00:16:45,241
whether the property will serve

368
00:16:46,958 --> 00:16:47,208
an identified community need and

369
00:16:48,991 --> 00:16:49,241
whether affordable affordability

370
00:16:52,358 --> 00:16:52,608
will be protected over time the

371
00:16:54,358 --> 00:16:54,608
goal should not simply to be

372
00:16:56,358 --> 00:16:56,608
transfer the property the goal

373
00:16:57,158 --> 00:16:57,408
should be to move problem

374
00:16:58,891 --> 00:16:59,141
property into productive use

375
00:17:02,958 --> 00:17:03,208
so I would encourage the

376
00:17:04,924 --> 00:17:05,174
legislature to view land bank

377
00:17:06,758 --> 00:17:07,008
enabling legis legislation as

378
00:17:08,791 --> 00:17:09,041
another tool and Oklahoma's

379
00:17:10,358 --> 00:17:10,608
housing and community

380
00:17:12,558 --> 00:17:12,808
development toolbox. it does not

381
00:17:14,558 --> 00:17:14,808
have to be one size fit all

382
00:17:16,891 --> 00:17:17,141
mandate it can provide willing

383
00:17:18,558 --> 00:17:18,808
communities with the authority

384
00:17:20,791 --> 00:17:21,041
and framework to create

385
00:17:22,524 --> 00:17:22,774
transparent and accountable

386
00:17:24,724 --> 00:17:24,974
system appropriate for the local

387
00:17:28,324 --> 00:17:28,574
needs as you evaluate potential

388
00:17:29,124 --> 00:17:29,374
legislation I would encourage

389
00:17:30,624 --> 00:17:30,874
you to focus on several

390
00:17:31,158 --> 00:17:31,408
principles

391
00:17:34,924 --> 00:17:35,174
clear statutory authority

392
00:17:36,991 --> 00:17:37,241
transparency and public

393
00:17:38,724 --> 00:17:38,974
accountability and effective

394
00:17:40,591 --> 00:17:40,841
process for addressing tidal and

395
00:17:42,591 --> 00:17:42,841
lean issues the ability to

396
00:17:43,124 --> 00:17:43,374
strategically assemble and hold

397
00:17:43,758 --> 00:17:44,008
property

398
00:17:46,758 --> 00:17:47,008
meaningful opportunities for

399
00:17:48,358 --> 00:17:48,608
nonprofit and affordable housing

400
00:17:50,358 --> 00:17:50,608
partners and safeguards and

401
00:17:52,591 --> 00:17:52,841
insure property transferred for

402
00:17:54,924 --> 00:17:55,174
public purpose and actually

403
00:17:56,891 --> 00:17:57,141
delivers that public benefit.

404
00:18:00,558 --> 00:18:00,808
Oklahoma already has capable

405
00:18:02,558 --> 00:18:02,808
nonprofit developers local

406
00:18:04,524 --> 00:18:04,774
governments housing

407
00:18:06,524 --> 00:18:06,774
organizations lenders and

408
00:18:07,124 --> 00:18:07,374
community partners that are

409
00:18:08,991 --> 00:18:09,241
ready to produce and preserve

410
00:18:09,658 --> 00:18:09,908
this housing

411
00:18:11,491 --> 00:18:11,741
what we sometimes lack

412
00:18:13,058 --> 00:18:13,308
is an efficient bridge

413
00:18:16,924 --> 00:18:17,174
between distressed property and

414
00:18:17,591 --> 00:18:17,841
development readyad property.

415
00:18:20,958 --> 00:18:21,208
if we can shorten that distance

416
00:18:22,558 --> 00:18:22,808
we can reduce unnecessary costs

417
00:18:26,324 --> 00:18:26,574
return vacant and abandoned

418
00:18:26,991 --> 00:18:27,241
property to productive use

419
00:18:30,524 --> 00:18:30,774
strengthen neighborhoods and

420
00:18:31,191 --> 00:18:31,441
create more opportunities for

421
00:18:32,958 --> 00:18:33,208
Oklahoma families to have a safe

422
00:18:35,058 --> 00:18:35,308
stable affordable place to call

423
00:18:35,758 --> 00:18:36,008
home.

424
00:18:38,758 --> 00:18:39,008
so thank you for allowing me to

425
00:18:39,391 --> 00:18:39,641
participate in this discussion

426
00:18:42,758 --> 00:18:43,008
and I appreciate the committee's

427
00:18:43,458 --> 00:18:43,708
willingness to examine solutions

428
00:18:44,591 --> 00:18:44,841
to this issue

429
00:18:46,458 --> 00:18:46,708
thank you

430
00:18:50,358 --> 00:18:50,608
thank you so muchrector

431
00:18:50,924 --> 00:18:51,174
Washington very much appreciate

432
00:18:54,324 --> 00:18:54,574
that overview I'm pleased to

433
00:18:56,524 --> 00:18:56,774
say we've got a national voice

434
00:18:58,758 --> 00:18:59,008
here we are gonna hear from

435
00:19:00,324 --> 00:19:00,574
Doug Ryan who's the vice

436
00:19:02,324 --> 00:19:02,574
president of housing policy

437
00:19:04,358 --> 00:19:04,608
forroedlutionstwork and they

438
00:19:04,991 --> 00:19:05,241
have some amazing resources if

439
00:19:08,358 --> 00:19:08,608
you want to read up on some of

440
00:19:10,324 --> 00:19:10,574
these issues we're talking

441
00:19:10,924 --> 00:19:11,174
about and we're so appreciate

442
00:19:12,758 --> 00:19:13,008
him coming and being willing to

443
00:19:14,724 --> 00:19:14,974
share with us to give give more

444
00:19:16,458 --> 00:19:16,708
context doug you ready to chime

445
00:19:17,091 --> 00:19:17,341
in there?

446
00:19:20,558 --> 00:19:20,808
I am thank you so much can you

447
00:19:21,224 --> 00:19:21,474
can you see my screen?

448
00:19:21,724 --> 00:19:21,974
Yeah.

449
00:19:26,558 --> 00:19:26,808
perfect I appreciate that

450
00:19:27,091 --> 00:19:27,341
thank you madam chairir and

451
00:19:28,758 --> 00:19:29,008
thank you Senator kirk for

452
00:19:30,958 --> 00:19:31,208
working on SD1478 and really

453
00:19:32,824 --> 00:19:33,074
appreciate the opportunity to

454
00:19:34,591 --> 00:19:34,841
speak before the committee and I

455
00:19:35,224 --> 00:19:35,474
look forward to working with the

456
00:19:36,758 --> 00:19:37,008
committee and and the staff as

457
00:19:38,558 --> 00:19:38,808
much as possible and how we can

458
00:19:40,358 --> 00:19:40,608
be helpful. my name is Doug

459
00:19:42,324 --> 00:19:42,574
Ryan. I'm the vice president of

460
00:19:42,958 --> 00:19:43,208
housing policy atrounded

461
00:19:44,591 --> 00:19:44,841
Solutions Network. we are a

462
00:19:46,558 --> 00:19:46,808
national nonprofit. I am based

463
00:19:48,391 --> 00:19:48,641
in Washingtondc but we have

464
00:19:48,991 --> 00:19:49,241
partners across the country.

465
00:19:50,991 --> 00:19:51,241
Katrina Washington is a member

466
00:19:52,558 --> 00:19:52,808
of our board we work in Tulsa

467
00:19:53,224 --> 00:19:53,474
with

468
00:19:54,991 --> 00:19:55,241
a nonprofit there we just got

469
00:19:56,791 --> 00:19:57,041
off the ground there we're very

470
00:19:58,558 --> 00:19:58,808
excited to work with in in that

471
00:20:00,324 --> 00:20:00,574
city and we look forward to more

472
00:20:00,991 --> 00:20:01,241
work in the state of Oklahoma.

473
00:20:02,758 --> 00:20:03,008
So I'm gonna talk a little bit

474
00:20:04,791 --> 00:20:05,041
about an overview of land banks

475
00:20:06,558 --> 00:20:06,808
across the country, what's

476
00:20:08,558 --> 00:20:08,808
happening elsewhere and how the

477
00:20:10,791 --> 00:20:11,041
legislation that's in front

478
00:20:13,224 --> 00:20:13,474
of us works well within those

479
00:20:16,391 --> 00:20:16,641
models. just an overview and

480
00:20:17,024 --> 00:20:17,274
kind of building off what

481
00:20:19,058 --> 00:20:19,308
Katrina said what land banks are

482
00:20:20,758 --> 00:20:21,008
the pertin they're typically

483
00:20:22,558 --> 00:20:22,808
public entities created through

484
00:20:23,224 --> 00:20:23,474
state legislation

485
00:20:26,758 --> 00:20:27,008
as proposed of the SB1478 and

486
00:20:28,591 --> 00:20:28,841
they helped convert problem

487
00:20:30,324 --> 00:20:30,574
properties. They do a number of

488
00:20:30,958 --> 00:20:31,208
things they they encourage

489
00:20:32,758 --> 00:20:33,008
reasonal regional collaboration

490
00:20:36,558 --> 00:20:36,808
including agreements among local

491
00:20:37,191 --> 00:20:37,441
governments that could help

492
00:20:38,958 --> 00:20:39,208
advance land banks they insure

493
00:20:40,758 --> 00:20:41,008
acquisition through tax

494
00:20:42,924 --> 00:20:43,174
foreclosure processes that

495
00:20:44,558 --> 00:20:44,808
little to no cost of the public

496
00:20:46,991 --> 00:20:47,241
to the taxpayer as Katrina

497
00:20:48,591 --> 00:20:48,841
emphasized it's really important

498
00:20:50,358 --> 00:20:50,608
that the title issues resolving

499
00:20:52,558 --> 00:20:52,808
those things they hold property

500
00:20:53,224 --> 00:20:53,474
tax exempt that helps

501
00:20:54,758 --> 00:20:55,008
them move these properties

502
00:20:58,558 --> 00:20:58,808
forward into a usable and

503
00:21:00,724 --> 00:21:00,974
productive uses and of course

504
00:21:02,558 --> 00:21:02,808
they deal with maintenance sales

505
00:21:04,358 --> 00:21:04,608
and conveyance those things are

506
00:21:06,358 --> 00:21:06,608
really important. There are 20

507
00:21:06,958 --> 00:21:07,208
states plus Puerto Rico that

508
00:21:08,958 --> 00:21:09,208
have passed land bank

509
00:21:10,991 --> 00:21:11,241
legislation and this has been

510
00:21:12,758 --> 00:21:13,008
going on for the last about two

511
00:21:16,391 --> 00:21:16,641
decades roughly and in2026

512
00:21:17,024 --> 00:21:17,274
the states of Louisiana and

513
00:21:18,991 --> 00:21:19,241
Washington passed land banks

514
00:21:20,958 --> 00:21:21,208
other states that have land bank

515
00:21:22,558 --> 00:21:22,808
legislation include uhlouisiana

516
00:21:23,191 --> 00:21:23,441
as they

517
00:21:24,991 --> 00:21:25,241
just said indiana, Kansas,

518
00:21:26,924 --> 00:21:27,174
Kentucky they are really across

519
00:21:28,558 --> 00:21:28,808
the country and they cross the

520
00:21:30,724 --> 00:21:30,974
ideological and party spectrum

521
00:21:31,391 --> 00:21:31,641
cause I think there's a

522
00:21:32,791 --> 00:21:33,041
recognition that this is a good

523
00:21:34,758 --> 00:21:35,008
tool to have to help address

524
00:21:36,591 --> 00:21:36,841
housing and economic development

525
00:21:37,224 --> 00:21:37,474
opportunities.

526
00:21:42,358 --> 00:21:42,608
The overview of land banks is on

527
00:21:42,991 --> 00:21:43,241
the screen. so basically there

528
00:21:44,791 --> 00:21:45,041
are a couple of key goals and

529
00:21:46,358 --> 00:21:46,608
then there are strategies to

530
00:21:48,558 --> 00:21:48,808
move forward once land banks are

531
00:21:50,524 --> 00:21:50,774
in place so their one goal of

532
00:21:52,558 --> 00:21:52,808
course as Katrina mentioned is

533
00:21:54,324 --> 00:21:54,574
eliminating blake that is

534
00:21:56,324 --> 00:21:56,574
critical and land banks can help

535
00:21:57,191 --> 00:21:57,441
do that through a facilitating

536
00:22:00,358 --> 00:22:00,608
demolitions the stabilization of

537
00:22:02,358 --> 00:22:02,608
the property and rehabilitation

538
00:22:02,958 --> 00:22:03,208
of the structures and the land

539
00:22:06,591 --> 00:22:06,841
itself. in some cases a land

540
00:22:07,224 --> 00:22:07,474
bank and its

541
00:22:10,758 --> 00:22:11,008
advisors may encourage the short

542
00:22:12,558 --> 00:22:12,808
term revenue meaning that they

543
00:22:14,324 --> 00:22:14,574
might sell properties that they

544
00:22:15,158 --> 00:22:15,408
acquired to the highest bidder

545
00:22:18,558 --> 00:22:18,808
and the legislation S1478 would

546
00:22:20,324 --> 00:22:20,574
would permit that use which I

547
00:22:22,791 --> 00:22:23,041
think is important to to have in

548
00:22:24,558 --> 00:22:24,808
your back pocket. It also can

549
00:22:26,958 --> 00:22:27,208
maximize long term revenue to

550
00:22:28,358 --> 00:22:28,608
convey properties which is

551
00:22:28,991 --> 00:22:29,241
sustainable development. Now

552
00:22:30,958 --> 00:22:31,208
that does often mean housing but

553
00:22:33,024 --> 00:22:33,274
it could also mean other uses as

554
00:22:34,958 --> 00:22:35,208
well economic strategies, health

555
00:22:36,758 --> 00:22:37,008
facilities recreation and things

556
00:22:37,424 --> 00:22:37,674
like that it's always

557
00:22:38,991 --> 00:22:39,241
important to have different

558
00:22:40,758 --> 00:22:41,008
options cause different land is

559
00:22:42,324 --> 00:22:42,574
suitable for different purposes

560
00:22:42,958 --> 00:22:43,208
but it's also really important

561
00:22:45,158 --> 00:22:45,408
to engage community members and

562
00:22:46,991 --> 00:22:47,241
local governance of course to to

563
00:22:48,558 --> 00:22:48,808
see what the priorities are

564
00:22:52,324 --> 00:22:52,574
often land banks are started

565
00:22:52,958 --> 00:22:53,208
because there's a need for

566
00:22:54,558 --> 00:22:54,808
affordable housing and

567
00:22:56,324 --> 00:22:56,574
affordable commercial

568
00:22:56,824 --> 00:22:57,074
development and that is

569
00:22:58,724 --> 00:22:58,974
criticalland banks are often

570
00:23:00,724 --> 00:23:00,974
acquiring properties that are in

571
00:23:02,524 --> 00:23:02,774
communities that have a real

572
00:23:04,524 --> 00:23:04,774
clear economic needs including

573
00:23:06,724 --> 00:23:06,974
housing and making sure that

574
00:23:08,524 --> 00:23:08,774
those properties can be

575
00:23:10,524 --> 00:23:10,774
delivered to effective

576
00:23:12,724 --> 00:23:12,974
developers nonprofit partners

577
00:23:14,558 --> 00:23:14,808
and others at a low price to

578
00:23:15,191 --> 00:23:15,441
make sure that those deals

579
00:23:16,758 --> 00:23:17,008
cancelled out is critical.

580
00:23:18,524 --> 00:23:18,774
That's one of the biggest costs

581
00:23:19,224 --> 00:23:19,474
that we're hearing across the

582
00:23:19,858 --> 00:23:20,108
country

583
00:23:20,924 --> 00:23:21,174
and through in Oklahoma is land

584
00:23:24,324 --> 00:23:24,574
and how having an effective

585
00:23:26,324 --> 00:23:26,574
process to convey these

586
00:23:28,324 --> 00:23:28,574
properties is really critical to

587
00:23:30,758 --> 00:23:31,008
making these properties into

588
00:23:31,424 --> 00:23:31,674
product abuses

589
00:23:34,358 --> 00:23:34,608
Finally neighborhood

590
00:23:36,358 --> 00:23:36,608
stabilization is a critical goal

591
00:23:37,124 --> 00:23:37,374
and that includes again

592
00:23:38,958 --> 00:23:39,208
similarly as the first item

593
00:23:42,358 --> 00:23:42,608
shows demolition rehabilitation

594
00:23:42,991 --> 00:23:43,241
and lock transfers

595
00:23:48,958 --> 00:23:49,208
Components of SP1478 from

596
00:23:50,724 --> 00:23:50,974
Senator kirt cover a couple of

597
00:23:52,458 --> 00:23:52,708
the key components I think that

598
00:23:53,124 --> 00:23:53,374
are in

599
00:23:54,891 --> 00:23:55,141
successful land banks across the

600
00:23:58,358 --> 00:23:58,608
country. It codifies land bank

601
00:23:59,024 --> 00:23:59,274
jurisdictions which would create

602
00:24:00,724 --> 00:24:00,974
land banks and I think what's

603
00:24:02,358 --> 00:24:02,608
really important to recognize is

604
00:24:04,591 --> 00:24:04,841
that this the bill also allows

605
00:24:06,358 --> 00:24:06,608
the approval of land banks. so

606
00:24:06,958 --> 00:24:07,208
that suggests that existing

607
00:24:08,724 --> 00:24:08,974
organizations can become land

608
00:24:10,558 --> 00:24:10,808
banks which is a which is a

609
00:24:12,358 --> 00:24:12,608
useful model and we're seeing

610
00:24:13,091 --> 00:24:13,341
that in other states. The bill

611
00:24:14,758 --> 00:24:15,008
would also provide authority to

612
00:24:16,358 --> 00:24:16,608
acquire tax foreclosed

613
00:24:16,924 --> 00:24:17,174
properties that that's of course

614
00:24:18,724 --> 00:24:18,974
critical and fundamental

615
00:24:20,724 --> 00:24:20,974
codifies the tax treatment of

616
00:24:22,624 --> 00:24:22,874
assets it's important that

617
00:24:23,191 --> 00:24:23,441
properties are

618
00:24:26,358 --> 00:24:26,608
treated as tax exempt so they

619
00:24:28,524 --> 00:24:28,774
can become productive uses it

620
00:24:30,524 --> 00:24:30,774
authorizes the land bank to

621
00:24:32,758 --> 00:24:33,008
issue tax exempt bonds again to

622
00:24:34,758 --> 00:24:35,008
lower the costs of operation and

623
00:24:36,558 --> 00:24:36,808
lower the costs of converting

624
00:24:38,558 --> 00:24:38,808
into productive uses and it

625
00:24:40,524 --> 00:24:40,774
identifies as permanent fundings

626
00:24:42,724 --> 00:24:42,974
and income sources but what

627
00:24:44,558 --> 00:24:44,808
that builds off I think the the

628
00:24:46,958 --> 00:24:47,208
bipartisan21st century road to

629
00:24:48,758 --> 00:24:49,008
housing bill that Congress

630
00:24:50,758 --> 00:24:51,008
enacted earlier this summer

631
00:24:52,591 --> 00:24:52,841
helps would help actually some

632
00:24:54,758 --> 00:24:55,008
organ organizations build

633
00:24:56,724 --> 00:24:56,974
housing and land banks can be a

634
00:24:58,724 --> 00:24:58,974
key component of that the the

635
00:25:00,624 --> 00:25:00,874
vision that that bill has

636
00:25:04,358 --> 00:25:04,608
has and that localities and

637
00:25:04,924 --> 00:25:05,174
states are going to implement

638
00:25:06,758 --> 00:25:07,008
including Oklahoma and the

639
00:25:08,524 --> 00:25:08,774
jurisdictions across the state.

640
00:25:10,524 --> 00:25:10,774
I think having a land bank

641
00:25:12,558 --> 00:25:12,808
authority will be a critical

642
00:25:13,158 --> 00:25:13,408
resource in order to make

643
00:25:14,758 --> 00:25:15,008
the21st century road to housing

644
00:25:16,391 --> 00:25:16,641
bill effective

645
00:25:20,558 --> 00:25:20,808
Land banks and homeownership

646
00:25:22,358 --> 00:25:22,608
that's our expertise. So our

647
00:25:22,958 --> 00:25:23,208
grounded solutions network we

648
00:25:24,358 --> 00:25:24,608
advocate for housing with

649
00:25:26,358 --> 00:25:26,608
lasting affordability that

650
00:25:26,958 --> 00:25:27,208
typically includes land trusts,

651
00:25:28,758 --> 00:25:29,008
community land trusts and other

652
00:25:30,958 --> 00:25:31,208
models that ensure that the home

653
00:25:32,558 --> 00:25:32,808
is not only affordable for that

654
00:25:34,558 --> 00:25:34,808
first generation of home buyers

655
00:25:35,191 --> 00:25:35,441
but multiple generations moving

656
00:25:38,591 --> 00:25:38,841
forward and part of the the idea

657
00:25:39,224 --> 00:25:39,474
is that when there is a public

658
00:25:39,858 --> 00:25:40,108
subsidy

659
00:25:42,724 --> 00:25:42,974
through a funding program like

660
00:25:44,524 --> 00:25:44,774
homeme or CBG or a local

661
00:25:46,724 --> 00:25:46,974
resource or public land

662
00:25:48,358 --> 00:25:48,608
including land disposal through

663
00:25:50,358 --> 00:25:50,608
a land bank it is critical that

664
00:25:52,358 --> 00:25:52,608
the community is able to

665
00:25:54,358 --> 00:25:54,608
maintain that asset and benefit

666
00:25:55,024 --> 00:25:55,274
from that asset over the long

667
00:25:56,891 --> 00:25:57,141
haul and that's why we think

668
00:25:59,124 --> 00:25:59,374
land banks and land trusts can

669
00:26:00,758 --> 00:26:01,008
work well together. So land

670
00:26:02,724 --> 00:26:02,974
banks really are critical

671
00:26:04,558 --> 00:26:04,808
housing partners so for example

672
00:26:06,358 --> 00:26:06,608
in a recent survey from last

673
00:26:06,924 --> 00:26:07,174
year by the Center for Community

674
00:26:08,558 --> 00:26:08,808
Progress a partner of ours

675
00:26:09,191 --> 00:26:09,441
that's that's also based in

676
00:26:09,758 --> 00:26:10,008
Washingtondc

677
00:26:12,691 --> 00:26:12,941
they surveyed land banks and

678
00:26:14,758 --> 00:26:15,008
they found that70% of them are

679
00:26:16,724 --> 00:26:16,974
either currently engaging or

680
00:26:17,324 --> 00:26:17,574
plan to engage in housing

681
00:26:18,891 --> 00:26:19,141
development.housing development

682
00:26:20,758 --> 00:26:21,008
is a critical goal of land

683
00:26:22,724 --> 00:26:22,974
banks. it's not the only one but

684
00:26:24,524 --> 00:26:24,774
it's often at the forefront of

685
00:26:26,324 --> 00:26:26,574
the of the community members and

686
00:26:27,024 --> 00:26:27,274
the and the partners and the

687
00:26:28,591 --> 00:26:28,841
local government that create

688
00:26:29,158 --> 00:26:29,408
these land banks

689
00:26:31,024 --> 00:26:31,274
Land banks also are a pipeline

690
00:26:32,924 --> 00:26:33,174
for challenge inventory. I mean

691
00:26:34,758 --> 00:26:35,008
one of the biggest challenges in

692
00:26:36,558 --> 00:26:36,808
many communities where land

693
00:26:38,958 --> 00:26:39,208
banks are getting started is the

694
00:26:40,758 --> 00:26:41,008
fact that there's this value

695
00:26:42,558 --> 00:26:42,808
gap. basicallysically the cost

696
00:26:44,591 --> 00:26:44,841
of acquiring and rehabilitating

697
00:26:46,758 --> 00:26:47,008
the property exceeds what the

698
00:26:48,758 --> 00:26:49,008
the the ultimate enterprise

699
00:26:50,758 --> 00:26:51,008
could be. So having the

700
00:26:52,558 --> 00:26:52,808
disposition process through

701
00:26:54,358 --> 00:26:54,608
through a land bank can can

702
00:26:54,958 --> 00:26:55,208
reduce the cost and actually

703
00:26:56,791 --> 00:26:57,041
make those deals pencil out and

704
00:26:58,558 --> 00:26:58,808
that's critically important.

705
00:26:59,224 --> 00:26:59,474
There's also imple

706
00:27:00,558 --> 00:27:00,808
ment ation of comprehensive

707
00:27:02,524 --> 00:27:02,774
strategies including as I

708
00:27:04,558 --> 00:27:04,808
mentioned before, not just

709
00:27:06,324 --> 00:27:06,574
housing but recreation and more

710
00:27:07,058 --> 00:27:07,308
there's some really good

711
00:27:08,958 --> 00:27:09,208
examples across the country of

712
00:27:12,524 --> 00:27:12,774
in uses for commercial public

713
00:27:14,724 --> 00:27:14,974
health resources and other

714
00:27:16,758 --> 00:27:17,008
outcomes so again the community

715
00:27:18,358 --> 00:27:18,608
has to be deeply involved

716
00:27:18,924 --> 00:27:19,174
because there's gonna be lots of

717
00:27:20,524 --> 00:27:20,774
different priorities within that

718
00:27:22,324 --> 00:27:22,574
community but also different

719
00:27:23,091 --> 00:27:23,341
types of properties will have

720
00:27:24,758 --> 00:27:25,008
better uses than they would in

721
00:27:26,558 --> 00:27:26,808
others they might be in an area

722
00:27:28,558 --> 00:27:28,808
that needs a certain type of

723
00:27:29,224 --> 00:27:29,474
resolution

724
00:27:30,758 --> 00:27:31,008
and it might not be suitable for

725
00:27:32,958 --> 00:27:33,208
say housing or recreation and

726
00:27:34,591 --> 00:27:34,841
that means meeting the

727
00:27:36,358 --> 00:27:36,608
prioritized needs of the

728
00:27:38,558 --> 00:27:38,808
communities which we identify as

729
00:27:39,291 --> 00:27:39,541
we work through the land bank

730
00:27:41,091 --> 00:27:41,341
creation process

731
00:27:44,958 --> 00:27:45,208
Furthermore there's like a

732
00:27:46,724 --> 00:27:46,974
couple of great examples across

733
00:27:48,524 --> 00:27:48,774
the country. So in Houston

734
00:27:50,524 --> 00:27:50,774
Houston Texas, the Houston

735
00:27:52,358 --> 00:27:52,608
Landrust which we worked on and

736
00:27:54,758 --> 00:27:55,008
helped get off the ground has

737
00:27:56,924 --> 00:27:57,174
been working on a to design

738
00:28:00,391 --> 00:28:00,641
how they move forward through a

739
00:28:01,091 --> 00:28:01,341
collaborative process with

740
00:28:02,358 --> 00:28:02,608
partners across the country.

741
00:28:02,958 --> 00:28:03,208
that's a good example in a very

742
00:28:06,358 --> 00:28:06,608
large city. one of the more

743
00:28:06,958 --> 00:28:07,208
interesting examples that we

744
00:28:08,724 --> 00:28:08,974
like to think of talk about

745
00:28:10,558 --> 00:28:10,808
is what's happening in the

746
00:28:11,158 --> 00:28:11,408
Richmond Virginia area so the

747
00:28:12,458 --> 00:28:12,708
maggie Walkerunity Landrust

748
00:28:14,658 --> 00:28:14,908
is is about

749
00:28:18,558 --> 00:28:18,808
roughly 10 years old they're in

750
00:28:19,191 --> 00:28:19,441
not just the city of Richmond

751
00:28:20,758 --> 00:28:21,008
but two adjacent counties and

752
00:28:22,958 --> 00:28:23,208
there are a hybrid Virginia law

753
00:28:24,991 --> 00:28:25,241
which I think is a good model

754
00:28:26,758 --> 00:28:27,008
allows the land bank

755
00:28:28,524 --> 00:28:28,774
jurisdiction to use the term

756
00:28:32,358 --> 00:28:32,608
that's in SB1478 to approve

757
00:28:32,991 --> 00:28:33,241
existing nonprofits as a land

758
00:28:36,624 --> 00:28:36,874
bank. So Maggie Walker in

759
00:28:38,591 --> 00:28:38,841
Richmondvirginia is the land

760
00:28:40,591 --> 00:28:40,841
bank for the city of Richmond

761
00:28:42,358 --> 00:28:42,608
plus henrico and Chesterfield

762
00:28:44,591 --> 00:28:44,841
counties and that allows the

763
00:28:45,158 --> 00:28:45,408
process to be a little bit more

764
00:28:45,791 --> 00:28:46,041
effici

765
00:28:48,358 --> 00:28:48,608
ent and today in the city of

766
00:28:50,924 --> 00:28:51,174
Richmond about 37 properties

767
00:28:54,358 --> 00:28:54,608
have been come under control

768
00:28:56,558 --> 00:28:56,808
of the land bank 30 through the

769
00:28:58,558 --> 00:28:58,808
tax foreclosure lien process

770
00:29:00,558 --> 00:29:00,808
which is critical6 through

771
00:29:02,558 --> 00:29:02,808
donations by the municipality by

772
00:29:04,624 --> 00:29:04,874
the city of Richmond that were

773
00:29:06,358 --> 00:29:06,608
seen as surplus land for the

774
00:29:08,558 --> 00:29:08,808
city and then one which is an

775
00:29:10,358 --> 00:29:10,608
interesting example was a a

776
00:29:10,991 --> 00:29:11,241
donation of a branch by the Bank

777
00:29:12,991 --> 00:29:13,241
of America and that is currently

778
00:29:14,591 --> 00:29:14,841
undergoing considerations

779
00:29:18,358 --> 00:29:18,608
for for how it can become a more

780
00:29:19,091 --> 00:29:19,341
productive use. so there's lots

781
00:29:20,558 --> 00:29:20,808
of different ways that

782
00:29:22,524 --> 00:29:22,774
properties come to the land bank

783
00:29:24,558 --> 00:29:24,808
and that's what's I think

784
00:29:26,558 --> 00:29:26,808
critical is that the land bank

785
00:29:28,524 --> 00:29:28,774
processes to be open and and and

786
00:29:30,358 --> 00:29:30,608
it's acquisition process. Good

787
00:29:32,358 --> 00:29:32,608
examples also exist in Minnesota

788
00:29:34,358 --> 00:29:34,608
and then one thing that's

789
00:29:36,558 --> 00:29:36,808
notable is that in Ohio there

790
00:29:38,558 --> 00:29:38,808
are 88 counties,71 of those

791
00:29:40,991 --> 00:29:41,241
counties have a land bank and

792
00:29:42,558 --> 00:29:42,808
the law has been on the books

793
00:29:44,558 --> 00:29:44,808
for about 20 years but in2015

794
00:29:45,224 --> 00:29:45,474
the Ohio legislature

795
00:29:47,158 --> 00:29:47,408
updated it and that was able to

796
00:29:50,358 --> 00:29:50,608
expand the ability of counties

797
00:29:52,358 --> 00:29:52,608
to create land banks and that

798
00:29:54,358 --> 00:29:54,608
included many rural counties

799
00:29:54,991 --> 00:29:55,241
throughout the state and many of

800
00:29:56,958 --> 00:29:57,208
the larger cities as well. So

801
00:29:58,524 --> 00:29:58,774
there's lots of good examples

802
00:30:00,791 --> 00:30:01,041
it's a very diverse group of

803
00:30:02,958 --> 00:30:03,208
land banks but also

804
00:30:04,991 --> 00:30:05,241
communities and also a processes

805
00:30:05,624 --> 00:30:05,874
to get there

806
00:30:10,524 --> 00:30:10,774
in this final one example is

807
00:30:12,358 --> 00:30:12,608
happening in atlanta. they

808
00:30:12,891 --> 00:30:13,141
have recently updated their

809
00:30:14,924 --> 00:30:15,174
policy in2024. there's a

810
00:30:16,691 --> 00:30:16,941
relationship between the Atlanta

811
00:30:18,524 --> 00:30:18,774
metroland Bank and the Atlanta

812
00:30:19,224 --> 00:30:19,474
Landrust. the Atlanta Landrust

813
00:30:20,958 --> 00:30:21,208
again is another partner member

814
00:30:22,958 --> 00:30:23,208
of our organization that

815
00:30:24,758 --> 00:30:25,008
works on affordable

816
00:30:26,758 --> 00:30:27,008
homeownership and housing in

817
00:30:28,924 --> 00:30:29,174
that region. there's a pilot

818
00:30:30,758 --> 00:30:31,008
program this link would actually

819
00:30:31,458 --> 00:30:31,708
work if you wanted to explore a

820
00:30:32,758 --> 00:30:33,008
little bit more about what's

821
00:30:34,791 --> 00:30:35,041
going on in atlanta. they have a

822
00:30:36,791 --> 00:30:37,041
robust methodology to ensure

823
00:30:37,358 --> 00:30:37,608
that there's long term

824
00:30:37,891 --> 00:30:38,141
affordability for multi

825
00:30:40,758 --> 00:30:41,008
ple generations they prior

826
00:30:42,891 --> 00:30:43,141
prioritize the disposition of

827
00:30:44,891 --> 00:30:45,141
certain types of properties and

828
00:30:46,924 --> 00:30:47,174
they ensure that the conveyance

829
00:30:49,091 --> 00:30:49,341
or the discounted sale makes

830
00:30:50,758 --> 00:30:51,008
those deals work so they have a

831
00:30:52,924 --> 00:30:53,174
a ceiling on the price is a

832
00:30:54,524 --> 00:30:54,774
share of the fair market value

833
00:30:56,324 --> 00:30:56,574
that these properties can be

834
00:30:56,958 --> 00:30:57,208
disposed of to nonprofits but

835
00:30:58,924 --> 00:30:59,174
that again allows the properties

836
00:31:00,924 --> 00:31:01,174
to pencil out for the projects

837
00:31:04,524 --> 00:31:04,774
to pencil out and growing and

838
00:31:06,758 --> 00:31:07,008
growingly expensive market in

839
00:31:07,424 --> 00:31:07,674
Atlanta.

840
00:31:11,124 --> 00:31:11,374
so with that I'm done again I

841
00:31:12,758 --> 00:31:13,008
appreciate the time to speak

842
00:31:14,524 --> 00:31:14,774
before you and the committee and

843
00:31:16,358 --> 00:31:16,608
thank you again madam chair and

844
00:31:17,058 --> 00:31:17,308
thank you again Senator Kkirk

845
00:31:18,924 --> 00:31:19,174
granted solutions is here to be

846
00:31:20,791 --> 00:31:21,041
helpful in any way that we

847
00:31:22,524 --> 00:31:22,774
possibly can. we are working in

848
00:31:23,191 --> 00:31:23,441
Oklahoma we are committed to

849
00:31:24,758 --> 00:31:25,008
working with new partners across

850
00:31:26,558 --> 00:31:26,808
the state and we look forward to

851
00:31:28,558 --> 00:31:28,808
working with the committee, your

852
00:31:30,358 --> 00:31:30,608
staff and anybody else that's

853
00:31:30,991 --> 00:31:31,241
interested in talking talking

854
00:31:32,758 --> 00:31:33,008
with us about affordable housing

855
00:31:34,558 --> 00:31:34,808
and housing with lasting

856
00:31:35,091 --> 00:31:35,341
affordability. thank you again.

857
00:31:38,758 --> 00:31:39,008
thank you so much Mr Ryan. If if

858
00:31:40,724 --> 00:31:40,974
you're able to stay till the end

859
00:31:43,091 --> 00:31:43,341
just in case there's questions

860
00:31:44,758 --> 00:31:45,008
I'd appreciate it Absolutely

861
00:31:46,358 --> 00:31:46,608
Great thank you thank you for

862
00:31:48,358 --> 00:31:48,608
that presentation for giving us

863
00:31:49,024 --> 00:31:49,274
some some great national models

864
00:31:50,724 --> 00:31:50,974
to look at. I appreciate it so

865
00:31:52,924 --> 00:31:53,174
much. next up I'm pleased to

866
00:31:54,924 --> 00:31:55,174
introduce Angieerker she's an

867
00:31:56,591 --> 00:31:56,841
Oklahoma attorney and realtor

868
00:31:58,558 --> 00:31:58,808
and she has a real passion for

869
00:32:00,358 --> 00:32:00,608
land banks and really put it on

870
00:32:02,358 --> 00:32:02,608
my radar so I'm pleased to

871
00:32:02,991 --> 00:32:03,241
hear what she wants to

872
00:32:03,524 --> 00:32:03,774
highlight.

873
00:32:06,558 --> 00:32:06,808
well thank you for taking my

874
00:32:08,358 --> 00:32:08,608
call a couple of years ago and

875
00:32:09,058 --> 00:32:09,308
listening to me. I really

876
00:32:10,758 --> 00:32:11,008
appreciate it. Thank you Doug. I

877
00:32:12,358 --> 00:32:12,608
really appreciate what you said

878
00:32:13,024 --> 00:32:13,274
and Katrina too you guys have

879
00:32:14,891 --> 00:32:15,141
really explained very well

880
00:32:16,758 --> 00:32:17,008
how land banks work and what

881
00:32:17,358 --> 00:32:17,608
they do and how they will

882
00:32:18,758 --> 00:32:19,008
benefit Oklahomans. I'm gonna

883
00:32:20,458 --> 00:32:20,708
talk a little bit about the

884
00:32:24,358 --> 00:32:24,608
the land bank legislation itself

885
00:32:26,358 --> 00:32:26,608
and I also want to thank my

886
00:32:26,991 --> 00:32:27,241
students who are probably

887
00:32:28,558 --> 00:32:28,808
watching because I bribed them

888
00:32:29,191 --> 00:32:29,441
with extra credit if they will

889
00:32:30,858 --> 00:32:31,108
watch this so thank you guys

890
00:32:34,624 --> 00:32:34,874
ok so oh I guess I need to do

891
00:32:35,291 --> 00:32:35,541
this here we go

892
00:32:35,691 --> 00:32:35,941
no

893
00:32:39,124 --> 00:32:39,374
Which one

894
00:32:44,458 --> 00:32:44,708
it's not working

895
00:32:47,124 --> 00:32:47,374
there we go.

896
00:32:49,124 --> 00:32:49,374
OK ok so who does this bill

897
00:32:50,624 --> 00:32:50,874
matter to first of all it's

898
00:32:52,391 --> 00:32:52,641
going to matter to Oklahomans

899
00:32:53,124 --> 00:32:53,374
who need affordable housing and

900
00:32:54,924 --> 00:32:55,174
we know that we have a lot of

901
00:32:56,658 --> 00:32:56,908
people who are in the low income

902
00:32:58,658 --> 00:32:58,908
and moderate income and even

903
00:32:59,258 --> 00:32:59,508
what you would consider a median

904
00:33:02,424 --> 00:33:02,674
income who cannot afford homes

905
00:33:03,024 --> 00:33:03,274
whether it's renting or

906
00:33:04,924 --> 00:33:05,174
purchasing it matters to i

907
00:33:06,424 --> 00:33:06,674
municipalities for dealing with

908
00:33:07,158 --> 00:33:07,408
that lack of affordable housing

909
00:33:08,924 --> 00:33:09,174
it's been in the news we have a

910
00:33:10,691 --> 00:33:10,941
lack of affordable housing in

911
00:33:12,391 --> 00:33:12,641
this state and this land bank

912
00:33:13,158 --> 00:33:13,408
legislation is a wonderful

913
00:33:14,891 --> 00:33:15,141
vehicle a wonderful tool to help

914
00:33:15,558 --> 00:33:15,808
municipalities

915
00:33:19,124 --> 00:33:19,374
address that need nonprofits

916
00:33:22,891 --> 00:33:23,141
like Katrina's and doug's and

917
00:33:23,591 --> 00:33:23,841
anyone else here who's

918
00:33:24,891 --> 00:33:25,141
representing a nonprofit who has

919
00:33:26,624 --> 00:33:26,874
a passion for affordable housing

920
00:33:29,158 --> 00:33:29,408
it's going to help you also be a

921
00:33:30,891 --> 00:33:31,141
party to the land bank and help

922
00:33:31,624 --> 00:33:31,874
create more affordable housing

923
00:33:34,924 --> 00:33:35,174
and developers construction

924
00:33:36,624 --> 00:33:36,874
companies, crews people who care

925
00:33:38,624 --> 00:33:38,874
about building and creating

926
00:33:39,391 --> 00:33:39,641
affordable housing in their

927
00:33:40,658 --> 00:33:40,908
communities they can turn these

928
00:33:42,491 --> 00:33:42,741
problem properties into

929
00:33:43,058 --> 00:33:43,308
affordable housing

930
00:33:45,158 --> 00:33:45,408
so today we're gonna talk about

931
00:33:48,858 --> 00:33:49,108
oh that really worked what

932
00:33:50,891 --> 00:33:51,141
SB147 does and doesn't do what

933
00:33:52,858 --> 00:33:53,108
it says what it doesn't says I'm

934
00:33:54,391 --> 00:33:54,641
gonna respond to a couple of

935
00:33:55,158 --> 00:33:55,408
concerns from opposing

936
00:33:56,891 --> 00:33:57,141
stakeholders and hopefully I

937
00:33:58,658 --> 00:33:58,908
will allay your fears and I'm

938
00:34:00,391 --> 00:34:00,641
gonna recommend a few targeted

939
00:34:01,124 --> 00:34:01,374
changes that might help us still

940
00:34:02,724 --> 00:34:02,974
succeed in the2027 session

941
00:34:06,624 --> 00:34:06,874
so our housing paradox here in

942
00:34:08,691 --> 00:34:08,941
Oklahoma we have about220,000

943
00:34:10,624 --> 00:34:10,874
plus vacant housing units and

944
00:34:12,391 --> 00:34:12,641
that's across the state. I'm

945
00:34:13,091 --> 00:34:13,341
talking about the entire state

946
00:34:14,924 --> 00:34:15,174
you can find that information in

947
00:34:17,124 --> 00:34:17,374
the housing finance agencies's

948
00:34:19,158 --> 00:34:19,408
yearly housing needs assessment

949
00:34:20,958 --> 00:34:21,208
we have about 80,000 plus rental

950
00:34:22,691 --> 00:34:22,941
homes that we need and this is

951
00:34:24,691 --> 00:34:24,941
for the lowest tier income

952
00:34:26,391 --> 00:34:26,641
Oklahomans and you can go to the

953
00:34:28,891 --> 00:34:29,141
Oklahoma watchchmarch2026

954
00:34:30,891 --> 00:34:31,141
study and read that there we

955
00:34:32,891 --> 00:34:33,141
have roughly 12,000 vacant or

956
00:34:33,558 --> 00:34:33,808
abandoned buildings just in

957
00:34:36,858 --> 00:34:37,108
the OKC metro area so for this

958
00:34:38,624 --> 00:34:38,874
statistic you can go to the

959
00:34:39,258 --> 00:34:39,508
city of Oklahoma City's

960
00:34:40,891 --> 00:34:41,141
estimation of what's out there

961
00:34:43,124 --> 00:34:43,374
vacant tax delinquent

962
00:34:45,091 --> 00:34:45,341
property is a resource a vital

963
00:34:46,624 --> 00:34:46,874
resource that we have that is

964
00:34:48,924 --> 00:34:49,174
just sitting idle it's it's

965
00:34:50,891 --> 00:34:51,141
costing us money it is not doing

966
00:34:52,391 --> 00:34:52,641
anything for the neighborhoods

967
00:34:53,191 --> 00:34:53,441
where it is it is causing

968
00:34:57,158 --> 00:34:57,408
concern and and crime and it

969
00:34:58,891 --> 00:34:59,141
security and all of the things

970
00:35:00,391 --> 00:35:00,641
that that a a property can

971
00:35:01,358 --> 00:35:01,608
negatively affect it is causing

972
00:35:02,924 --> 00:35:03,174
that to happen and the land

973
00:35:03,491 --> 00:35:03,741
banks this legisl

974
00:35:06,358 --> 00:35:06,608
ation is going to be that legal

975
00:35:07,358 --> 00:35:07,608
tool that lets whatever

976
00:35:08,924 --> 00:35:09,174
community it's in turn that

977
00:35:10,891 --> 00:35:11,141
problem property into a

978
00:35:12,391 --> 00:35:12,641
profitable and productive

979
00:35:14,391 --> 00:35:14,641
resource and become affordable

980
00:35:15,124 --> 00:35:15,374
housing or as doug mentioned

981
00:35:16,491 --> 00:35:16,741
affordable

982
00:35:18,924 --> 00:35:19,174
commercial property as well

983
00:35:20,624 --> 00:35:20,874
someone wanting to start maybe a

984
00:35:21,358 --> 00:35:21,608
small business

985
00:35:25,124 --> 00:35:25,374
what does usB1478 actually do it

986
00:35:28,391 --> 00:35:28,641
creates a quasigovernmental and

987
00:35:29,091 --> 00:35:29,341
I'll tell you why I call it that

988
00:35:30,624 --> 00:35:30,874
in just a second but it's it's a

989
00:35:33,091 --> 00:35:33,341
it's a public private

990
00:35:34,924 --> 00:35:35,174
agreement organization that

991
00:35:36,891 --> 00:35:37,141
gives whatever municipality

992
00:35:39,158 --> 00:35:39,408
chooses to create one the power

993
00:35:39,858 --> 00:35:40,108
to

994
00:35:42,891 --> 00:35:43,141
to take vacant abandoned

995
00:35:44,924 --> 00:35:45,174
dilapidated property with with

996
00:35:46,891 --> 00:35:47,141
cloud and title with issues it

997
00:35:47,591 --> 00:35:47,841
allows them to one

998
00:35:52,424 --> 00:35:52,674
wash what is owed on taxes they

999
00:35:54,624 --> 00:35:54,874
wipe the tax delinquency clear

1000
00:35:56,424 --> 00:35:56,674
and then the most important

1001
00:35:57,091 --> 00:35:57,341
thing like Katrina was talking

1002
00:35:58,858 --> 00:35:59,108
about one of those holding

1003
00:36:00,858 --> 00:36:01,108
issues and the time constraint

1004
00:36:03,124 --> 00:36:03,374
issues is they allow the land

1005
00:36:06,424 --> 00:36:06,674
bank to clear the title that is

1006
00:36:07,158 --> 00:36:07,408
a lot of times the one thing

1007
00:36:09,124 --> 00:36:09,374
keeping a piece of property in

1008
00:36:11,158 --> 00:36:11,408
its state of disrepair in its

1009
00:36:12,858 --> 00:36:13,108
state of just becoming a drain

1010
00:36:15,124 --> 00:36:15,374
on society we can clear that

1011
00:36:16,791 --> 00:36:17,041
title and get it back into

1012
00:36:17,358 --> 00:36:17,608
productive and profitable use.

1013
00:36:20,891 --> 00:36:21,141
the land bank will identify

1014
00:36:22,658 --> 00:36:22,908
these properties they are vacant

1015
00:36:24,391 --> 00:36:24,641
they are abandoned they are tax

1016
00:36:24,991 --> 00:36:25,241
delinquent and they are within

1017
00:36:26,658 --> 00:36:26,908
whatever jurisdiction that land

1018
00:36:27,358 --> 00:36:27,608
that land bank

1019
00:36:28,858 --> 00:36:29,108
covers

1020
00:36:32,391 --> 00:36:32,641
they will then acquire those

1021
00:36:32,958 --> 00:36:33,208
they can acquire them through

1022
00:36:34,391 --> 00:36:34,641
tax foreclosure through

1023
00:36:35,091 --> 00:36:35,341
donations through purchase

1024
00:36:37,124 --> 00:36:37,374
through municipal transfer. they

1025
00:36:39,124 --> 00:36:39,374
will then hold and prepare that

1026
00:36:42,591 --> 00:36:42,841
land for productive use and

1027
00:36:44,391 --> 00:36:44,641
that's when they clear the title

1028
00:36:45,091 --> 00:36:45,341
that's when they ready it they

1029
00:36:46,658 --> 00:36:46,908
cut the grass they ensure

1030
00:36:48,658 --> 00:36:48,908
security they put it into a

1031
00:36:50,691 --> 00:36:50,941
state of basically think of it

1032
00:36:51,391 --> 00:36:51,641
like it's now for sale and

1033
00:36:52,891 --> 00:36:53,141
you're showing the property kind

1034
00:36:54,391 --> 00:36:54,641
of they stage it right that kind

1035
00:36:55,224 --> 00:36:55,474
of idea they're getting it ready

1036
00:36:55,891 --> 00:36:56,141
to go out to the public

1037
00:36:59,124 --> 00:36:59,374
they then return it to pub

1038
00:37:01,158 --> 00:37:01,408
productive public use it's

1039
00:37:02,891 --> 00:37:03,141
conveyed as public space it

1040
00:37:05,158 --> 00:37:05,408
can be conveyed as public or

1041
00:37:06,924 --> 00:37:07,174
affordable housing directly from

1042
00:37:10,391 --> 00:37:10,641
the land bank and it can

1043
00:37:12,391 --> 00:37:12,641
follow whatever local priorities

1044
00:37:13,091 --> 00:37:13,341
are set within that land bank so

1045
00:37:14,891 --> 00:37:15,141
what's good for Oklahoma City's

1046
00:37:16,924 --> 00:37:17,174
landba may not be good for ryan

1047
00:37:18,891 --> 00:37:19,141
County's land bank and vice

1048
00:37:20,891 --> 00:37:21,141
versa so each land bank is able

1049
00:37:21,591 --> 00:37:21,841
to set their community goals

1050
00:37:25,124 --> 00:37:25,374
accountability is built into

1051
00:37:27,124 --> 00:37:27,374
this legislation there is no

1052
00:37:28,891 --> 00:37:29,141
power of eminent domain so

1053
00:37:30,391 --> 00:37:30,641
people do not need to worry

1054
00:37:30,958 --> 00:37:31,208
about the government coming and

1055
00:37:32,624 --> 00:37:32,874
just taking their property there

1056
00:37:34,391 --> 00:37:34,641
is no takings clause in this

1057
00:37:37,091 --> 00:37:37,341
legislation it expressly denies

1058
00:37:40,391 --> 00:37:40,641
eminent domain full stop the

1059
00:37:41,091 --> 00:37:41,341
open meeting and open records

1060
00:37:42,891 --> 00:37:43,141
acts do apply to this so any

1061
00:37:44,624 --> 00:37:44,874
board meetings that happen and

1062
00:37:45,258 --> 00:37:45,508
any meetings that occur with

1063
00:37:48,891 --> 00:37:49,141
whomever the land bank wants to

1064
00:37:49,558 --> 00:37:49,808
meet with are subject to that

1065
00:37:52,858 --> 00:37:53,108
board members for the land bank

1066
00:37:54,858 --> 00:37:55,108
they serve without compensation

1067
00:37:57,158 --> 00:37:57,408
it is no salary no per diem

1068
00:37:58,891 --> 00:37:59,141
beyond reasonable expenses and

1069
00:38:01,158 --> 00:38:01,408
it is a volunteer opportunity

1070
00:38:02,358 --> 00:38:02,608
to give back to your

1071
00:38:04,658 --> 00:38:04,908
municipality theres a

1072
00:38:06,358 --> 00:38:06,608
conflict of interest clause

1073
00:38:07,391 --> 00:38:07,641
built in no board member or

1074
00:38:08,891 --> 00:38:09,141
employee of the land bank can

1075
00:38:10,891 --> 00:38:11,141
hold an interest in any land

1076
00:38:11,458 --> 00:38:11,708
meaning real or vacant land

1077
00:38:16,391 --> 00:38:16,641
or contracts no contracts are

1078
00:38:17,024 --> 00:38:17,274
allowed to be held by board

1079
00:38:17,558 --> 00:38:17,808
members or employees

1080
00:38:20,391 --> 00:38:20,641
bonds I know doug mentioned

1081
00:38:22,624 --> 00:38:22,874
bonds a minute ago and I just

1082
00:38:24,624 --> 00:38:24,874
want to ensure that they are not

1083
00:38:26,391 --> 00:38:26,641
backed by taxpayers whatever

1084
00:38:27,091 --> 00:38:27,341
bonds are issued by the land

1085
00:38:28,858 --> 00:38:29,108
bank are not the debt of any

1086
00:38:30,624 --> 00:38:30,874
city municipality, county state

1087
00:38:31,291 --> 00:38:31,541
they are the debt of the land

1088
00:38:31,958 --> 00:38:32,208
bank itself.

1089
00:38:36,858 --> 00:38:37,108
so a minute ago I mentioned no

1090
00:38:38,624 --> 00:38:38,874
eminent domain that is a fear

1091
00:38:39,258 --> 00:38:39,508
that I think a lot of people

1092
00:38:40,891 --> 00:38:41,141
have with land bank legislation

1093
00:38:43,124 --> 00:38:43,374
I just want to be very clear

1094
00:38:46,358 --> 00:38:46,608
that no imminent domain exists

1095
00:38:47,024 --> 00:38:47,274
anywhere in this bill it is not

1096
00:38:48,924 --> 00:38:49,174
allowed it's not there so I hope

1097
00:38:50,624 --> 00:38:50,874
I have allayed that fear. Every

1098
00:38:52,391 --> 00:38:52,641
land bank is also an opt in

1099
00:38:54,391 --> 00:38:54,641
municipalities do not have to

1100
00:38:56,391 --> 00:38:56,641
adopt land bank legislation

1101
00:38:57,158 --> 00:38:57,408
within their jurisdiction but

1102
00:38:58,891 --> 00:38:59,141
they can choose to do so and

1103
00:39:00,658 --> 00:39:00,908
Doug mentioned a wonderful

1104
00:39:02,391 --> 00:39:02,641
array of opportunities you have

1105
00:39:03,191 --> 00:39:03,441
to create the land banks

1106
00:39:03,724 --> 00:39:03,974
current nonprofits

1107
00:39:06,391 --> 00:39:06,641
creating a new one there are

1108
00:39:08,624 --> 00:39:08,874
several options the goal of the

1109
00:39:10,624 --> 00:39:10,874
land bank is not to hold and

1110
00:39:13,124 --> 00:39:13,374
hoard property it is to exit

1111
00:39:14,891 --> 00:39:15,141
that property to take it from

1112
00:39:16,624 --> 00:39:16,874
that vacant abandoned

1113
00:39:18,391 --> 00:39:18,641
dilapidated state that it is in

1114
00:39:20,891 --> 00:39:21,141
to put it into this productive

1115
00:39:23,158 --> 00:39:23,408
holding pattern and get it out

1116
00:39:24,891 --> 00:39:25,141
the door get it donated to a

1117
00:39:26,858 --> 00:39:27,108
nonprofit get it sold to a

1118
00:39:28,658 --> 00:39:28,908
nonprofit, get it back out

1119
00:39:29,358 --> 00:39:29,608
there, get it sold to an

1120
00:39:31,124 --> 00:39:31,374
individual get it back out

1121
00:39:32,958 --> 00:39:33,208
there into productive use

1122
00:39:33,491 --> 00:39:33,741
generating positive taxes right

1123
00:39:36,491 --> 00:39:36,741
positives property taxes

1124
00:39:40,658 --> 00:39:40,908
Another fear is that this is

1125
00:39:42,658 --> 00:39:42,908
going to cost taxpayers I've

1126
00:39:44,391 --> 00:39:44,641
already mentioned that any bonds

1127
00:39:45,124 --> 00:39:45,374
associated with landbank are

1128
00:39:46,924 --> 00:39:47,174
not the responsibility of the

1129
00:39:48,858 --> 00:39:49,108
taxpayers there is no

1130
00:39:51,124 --> 00:39:51,374
mandatory tax appropriation we

1131
00:39:52,891 --> 00:39:53,141
are funded we the land banks are

1132
00:39:54,858 --> 00:39:55,108
funded by grants loans and self-

1133
00:39:56,891 --> 00:39:57,141
generated income.land banks are

1134
00:39:59,091 --> 00:39:59,341
allowed to hold some property

1135
00:40:00,891 --> 00:40:01,141
to generate income they can

1136
00:40:02,624 --> 00:40:02,874
charge rents they can charge

1137
00:40:04,424 --> 00:40:04,674
they can sell it and and the

1138
00:40:04,991 --> 00:40:05,241
income they get from those those

1139
00:40:07,124 --> 00:40:07,374
fees help generate more land for

1140
00:40:07,791 --> 00:40:08,041
more nonprofits more

1141
00:40:09,391 --> 00:40:09,641
people.

1142
00:40:11,224 --> 00:40:11,474
again I've mentioned board

1143
00:40:12,658 --> 00:40:12,908
members serve without

1144
00:40:13,158 --> 00:40:13,408
compensation there are no

1145
00:40:16,391 --> 00:40:16,641
salaries the debt stays with the

1146
00:40:17,158 --> 00:40:17,408
land bank it does not go to the

1147
00:40:19,158 --> 00:40:19,408
public I've mentioned already

1148
00:40:20,424 --> 00:40:20,674
that bonds are the land bank's

1149
00:40:22,624 --> 00:40:22,874
own limited obligation and must

1150
00:40:24,491 --> 00:40:24,741
say so in that wording on the

1151
00:40:25,191 --> 00:40:25,441
face of the bont

1152
00:40:28,391 --> 00:40:28,641
municipalities and states are

1153
00:40:30,891 --> 00:40:31,141
not liable. The tax capture is a

1154
00:40:32,891 --> 00:40:33,141
net gain rather than a loss

1155
00:40:33,491 --> 00:40:33,741
right now these properties are

1156
00:40:34,924 --> 00:40:35,174
sitting there the taxes are not

1157
00:40:36,658 --> 00:40:36,908
being paid the bills are adding

1158
00:40:38,891 --> 00:40:39,141
up we we have to cut the grass

1159
00:40:40,624 --> 00:40:40,874
we have to ensure security that

1160
00:40:42,624 --> 00:40:42,874
costs money so it's a drain on

1161
00:40:44,924 --> 00:40:45,174
the municipality oncece a landba

1162
00:40:46,424 --> 00:40:46,674
takes that property and puts it

1163
00:40:47,191 --> 00:40:47,441
back out into productive use

1164
00:40:50,691 --> 00:40:50,941
there's a 5 year50% tax revenue

1165
00:40:52,658 --> 00:40:52,908
share plan so for five years the

1166
00:40:54,458 --> 00:40:54,708
land bank gets the half of the

1167
00:40:55,124 --> 00:40:55,374
tax revenue and the municipality

1168
00:40:56,891 --> 00:40:57,141
gets the other half at the end

1169
00:40:58,424 --> 00:40:58,674
of that five years it all goes

1170
00:41:00,424 --> 00:41:00,674
to the municipality that helps

1171
00:41:01,091 --> 00:41:01,341
fund the land bank's

1172
00:41:01,524 --> 00:41:01,774
work

1173
00:41:08,391 --> 00:41:08,641
Another fear is loss of local

1174
00:41:08,991 --> 00:41:09,241
control

1175
00:41:12,391 --> 00:41:12,641
the state is not mandating

1176
00:41:13,024 --> 00:41:13,274
through this legislation that

1177
00:41:14,858 --> 00:41:15,108
any municipality has to create a

1178
00:41:16,924 --> 00:41:17,174
land bank it is not saying that

1179
00:41:18,658 --> 00:41:18,908
at all jurisdictions and

1180
00:41:20,658 --> 00:41:20,908
municipalities have that choice

1181
00:41:22,658 --> 00:41:22,908
themselves your board for

1182
00:41:23,258 --> 00:41:23,508
your land bank and your

1183
00:41:26,624 --> 00:41:26,874
jurisdiction is filled with your

1184
00:41:28,624 --> 00:41:28,874
members of your community it is

1185
00:41:30,624 --> 00:41:30,874
filled with it it is run

1186
00:41:32,391 --> 00:41:32,641
through your local bylaws that

1187
00:41:34,491 --> 00:41:34,741
you create it sets local

1188
00:41:35,224 --> 00:41:35,474
priorities again something

1189
00:41:38,391 --> 00:41:38,641
that's good for Oklahoma City

1190
00:41:39,091 --> 00:41:39,341
might not be good forhaie. Sha

1191
00:41:41,158 --> 00:41:41,408
ie gets to set their own their

1192
00:41:42,891 --> 00:41:43,141
own agenda for their their land

1193
00:41:44,658 --> 00:41:44,908
bbake. Oklahoma City sets theirs

1194
00:41:46,391 --> 00:41:46,641
so that it matches the needs of

1195
00:41:47,124 --> 00:41:47,374
the people living in those

1196
00:41:48,891 --> 00:41:49,141
jurisdictions if you so

1197
00:41:50,858 --> 00:41:51,108
choose to dissolve a land ba at

1198
00:41:52,391 --> 00:41:52,641
any time that is also on the

1199
00:41:53,124 --> 00:41:53,374
local level you do not have to

1200
00:41:55,158 --> 00:41:55,408
get permission from the state or

1201
00:41:56,891 --> 00:41:57,141
anyone else to disband or

1202
00:41:57,458 --> 00:41:57,708
dissolve your land bank.

1203
00:42:02,624 --> 00:42:02,874
OK what can we do to maybe

1204
00:42:04,358 --> 00:42:04,608
strengthen the legislation going

1205
00:42:07,058 --> 00:42:07,308
into the2027 s session

1206
00:42:10,391 --> 00:42:10,641
section 9E has a youth hierarchy

1207
00:42:11,091 --> 00:42:11,341
and I think that something that

1208
00:42:12,858 --> 00:42:13,108
we could possibly do here is

1209
00:42:14,858 --> 00:42:15,108
instead of using the word may we

1210
00:42:16,591 --> 00:42:16,841
could use the word must which

1211
00:42:17,324 --> 00:42:17,574
has a little more teeth to it

1212
00:42:17,991 --> 00:42:18,241
making

1213
00:42:22,824 --> 00:42:23,074
affordable housing set asides

1214
00:42:24,858 --> 00:42:25,108
a must for land banks and you do

1215
00:42:26,858 --> 00:42:27,108
that by you can create

1216
00:42:28,624 --> 00:42:28,874
covenants that target low income

1217
00:42:30,391 --> 00:42:30,641
housing you can also put deed

1218
00:42:32,624 --> 00:42:32,874
restrictions on the properties

1219
00:42:33,324 --> 00:42:33,574
doug mentioned something like

1220
00:42:35,058 --> 00:42:35,308
this a minute ago keeping that

1221
00:42:36,624 --> 00:42:36,874
affordable housing in the

1222
00:42:38,391 --> 00:42:38,641
affordable housing stream no

1223
00:42:39,091 --> 00:42:39,341
matter who buys or sells it or

1224
00:42:41,091 --> 00:42:41,341
rents it so if I purchased a

1225
00:42:43,091 --> 00:42:43,341
home for $100,000 I am allowed

1226
00:42:46,391 --> 00:42:46,641
growth it is a slower and lower

1227
00:42:47,091 --> 00:42:47,341
percentage of growth and maybe

1228
00:42:48,624 --> 00:42:48,874
the houses around me but I am

1229
00:42:49,291 --> 00:42:49,541
allowed growth

1230
00:42:52,391 --> 00:42:52,641
and then if I choose to sell I

1231
00:42:53,391 --> 00:42:53,641
am bound by a deed restriction

1232
00:42:54,658 --> 00:42:54,908
to sell with that limited

1233
00:42:56,391 --> 00:42:56,641
growth. I still get to make a

1234
00:42:57,191 --> 00:42:57,441
profit. I'm still a private

1235
00:42:58,891 --> 00:42:59,141
citizen who has now equity in my

1236
00:43:00,891 --> 00:43:01,141
home and it is growing just like

1237
00:43:02,858 --> 00:43:03,108
the equity around me it's just

1238
00:43:04,658 --> 00:43:04,908
at a more affordable level so

1239
00:43:05,391 --> 00:43:05,641
that the next person who

1240
00:43:06,724 --> 00:43:06,974
purchases my home can also

1241
00:43:07,291 --> 00:43:07,541
afford it

1242
00:43:10,858 --> 00:43:11,108
we can require a community

1243
00:43:12,858 --> 00:43:13,108
engagement plan the theenter for

1244
00:43:14,858 --> 00:43:15,108
Community Progress if you do not

1245
00:43:16,391 --> 00:43:16,641
understand land banks or want to

1246
00:43:17,091 --> 00:43:17,341
know more at all please go to

1247
00:43:19,058 --> 00:43:19,308
their website they have the most

1248
00:43:21,091 --> 00:43:21,341
amazing information it is

1249
00:43:22,591 --> 00:43:22,841
anything you want to know about

1250
00:43:24,858 --> 00:43:25,108
a land bank current future

1251
00:43:25,424 --> 00:43:25,674
whatever you want to know

1252
00:43:27,124 --> 00:43:27,374
they've got the information

1253
00:43:30,624 --> 00:43:30,874
resident trust public trust

1254
00:43:32,391 --> 00:43:32,641
private trust is is really

1255
00:43:32,958 --> 00:43:33,208
something that we need to

1256
00:43:35,124 --> 00:43:35,374
continue to focus on and

1257
00:43:36,658 --> 00:43:36,908
there's no requirement in the

1258
00:43:37,258 --> 00:43:37,508
legislation today so possibly

1259
00:43:37,924 --> 00:43:38,174
putting

1260
00:43:39,158 --> 00:43:39,408
something in there where we we

1261
00:43:41,124 --> 00:43:41,374
have some community engagement

1262
00:43:43,158 --> 00:43:43,408
within the bill might give

1263
00:43:43,691 --> 00:43:43,941
might allay some fears of the

1264
00:43:44,358 --> 00:43:44,608
public

1265
00:43:48,391 --> 00:43:48,641
broader regional formation

1266
00:43:49,091 --> 00:43:49,341
I've said over and over that

1267
00:43:50,624 --> 00:43:50,874
this is the choice of the

1268
00:43:52,591 --> 00:43:52,841
municipality or jurisdiction

1269
00:43:54,391 --> 00:43:54,641
creating it but we could also

1270
00:43:54,991 --> 00:43:55,241
maybe put something in the bill

1271
00:43:56,424 --> 00:43:56,674
that allows those jurisdictions

1272
00:43:57,158 --> 00:43:57,408
to band together because we have

1273
00:43:59,158 --> 00:43:59,408
some smaller jurisdictions who

1274
00:44:01,124 --> 00:44:01,374
may not be able to take on

1275
00:44:03,124 --> 00:44:03,374
this this in their their single

1276
00:44:04,858 --> 00:44:05,108
jurisdiction so they could band

1277
00:44:06,391 --> 00:44:06,641
together with some smaller

1278
00:44:06,991 --> 00:44:07,241
communities around them and

1279
00:44:08,658 --> 00:44:08,908
create a larger land bank

1280
00:44:10,424 --> 00:44:10,674
that serves the people in those

1281
00:44:12,391 --> 00:44:12,641
concurrent jurisdictions that

1282
00:44:12,991 --> 00:44:13,241
form that land bank.

1283
00:44:16,624 --> 00:44:16,874
we can also add additional

1284
00:44:18,391 --> 00:44:18,641
annual public reporting maybe we

1285
00:44:19,091 --> 00:44:19,341
require a yearly report on the

1286
00:44:20,891 --> 00:44:21,141
properties acquired the

1287
00:44:22,858 --> 00:44:23,108
properties disposed of and the

1288
00:44:24,624 --> 00:44:24,874
outcomes achieved by all of

1289
00:44:25,324 --> 00:44:25,574
those properties this

1290
00:44:27,158 --> 00:44:27,408
directly answers cost and it

1291
00:44:28,924 --> 00:44:29,174
also gives a lot of transparency

1292
00:44:29,658 --> 00:44:29,908
from the land bank to the people

1293
00:44:30,324 --> 00:44:30,574
it serves

1294
00:44:35,091 --> 00:44:35,341
OK so I of course am in favor of

1295
00:44:37,091 --> 00:44:37,341
the land bacon I just wanted to

1296
00:44:38,858 --> 00:44:39,108
let you all know how the

1297
00:44:40,658 --> 00:44:40,908
current legislation sits what we

1298
00:44:41,358 --> 00:44:41,608
could possibly do to make it

1299
00:44:43,124 --> 00:44:43,374
even better and any address any

1300
00:44:44,891 --> 00:44:45,141
fears that anyone has about it

1301
00:44:47,391 --> 00:44:47,641
currently I've got my contact

1302
00:44:48,058 --> 00:44:48,308
information

1303
00:44:51,091 --> 00:44:51,341
I think on the next slide no we

1304
00:44:53,324 --> 00:44:53,574
do not. OK I will get my contact

1305
00:44:54,658 --> 00:44:54,908
information for you if you have

1306
00:44:55,291 --> 00:44:55,541
any questions I'm happy to speak

1307
00:44:55,924 --> 00:44:56,174
to you

1308
00:44:58,658 --> 00:44:58,908
at length about this but thank

1309
00:44:59,358 --> 00:44:59,608
you madam chairir, thank you

1310
00:45:00,924 --> 00:45:01,174
Julia again for taking the time

1311
00:45:02,391 --> 00:45:02,641
to listen to me and put this

1312
00:45:03,158 --> 00:45:03,408
together. I really appreciate it

1313
00:45:04,758 --> 00:45:05,008
thank you Katrina for your input

1314
00:45:05,424 --> 00:45:05,674
and doug as well.

1315
00:45:08,658 --> 00:45:08,908
thank you so much I appreciate

1316
00:45:10,624 --> 00:45:10,874
you I do want to move to our

1317
00:45:12,624 --> 00:45:12,874
last speaker before we do any

1318
00:45:14,891 --> 00:45:15,141
closing or questions I'm very

1319
00:45:17,158 --> 00:45:17,408
appreciative of doctor Reading

1320
00:45:19,391 --> 00:45:19,641
from the absenteehawneehousing

1321
00:45:22,658 --> 00:45:22,908
Authority we we have many

1322
00:45:24,658 --> 00:45:24,908
different we had a big long list

1323
00:45:26,658 --> 00:45:26,908
of of great speakers that we

1324
00:45:28,391 --> 00:45:28,641
could recruit but we knew that

1325
00:45:29,158 --> 00:45:29,408
we wanted to hear from someone

1326
00:45:31,124 --> 00:45:31,374
outside the OKC intulsa metro

1327
00:45:32,658 --> 00:45:32,908
because it's just a different

1328
00:45:34,391 --> 00:45:34,641
scenario and we know that

1329
00:45:35,158 --> 00:45:35,408
they've been doing strong work

1330
00:45:35,824 --> 00:45:36,074
for a long time sos thank you

1331
00:45:36,491 --> 00:45:36,741
very much

1332
00:45:37,624 --> 00:45:37,874
for being here today

1333
00:45:47,158 --> 00:45:47,408
day to day on the chiropractor

1334
00:45:48,891 --> 00:45:49,141
for the adenteehawnee tribal

1335
00:45:50,624 --> 00:45:50,874
healthystem and I sit on the

1336
00:45:51,391 --> 00:45:51,641
board at the absentee Shawnee

1337
00:45:52,058 --> 00:45:52,308
housing Authority.

1338
00:45:54,458 --> 00:45:54,708
that really means two things

1339
00:45:57,091 --> 00:45:57,341
I have a passion for affordable

1340
00:46:00,358 --> 00:46:00,608
housing and I usually spend my

1341
00:46:02,358 --> 00:46:02,608
week with people who don't have

1342
00:46:03,058 --> 00:46:03,308
a chance to sit at the table

1343
00:46:06,391 --> 00:46:06,641
like I am today. right now

1344
00:46:08,624 --> 00:46:08,874
across rural Oklahoma we got

1345
00:46:10,624 --> 00:46:10,874
wonderful people a young medical

1346
00:46:12,391 --> 00:46:12,641
assistant at a rural hospital,

1347
00:46:14,391 --> 00:46:14,641
middle aged elementary school

1348
00:46:15,124 --> 00:46:15,374
teacher or a newly hired

1349
00:46:17,091 --> 00:46:17,341
sheriff's deputy who show up,

1350
00:46:18,624 --> 00:46:18,874
work their tails off for their

1351
00:46:19,224 --> 00:46:19,474
community day in and day out

1352
00:46:22,824 --> 00:46:23,074
but when their shift ends a lot

1353
00:46:24,424 --> 00:46:24,674
of them have to drive45 minutes

1354
00:46:26,491 --> 00:46:26,741
to an hour just to find a safe

1355
00:46:27,158 --> 00:46:27,408
affordable place to sleep.

1356
00:46:30,858 --> 00:46:31,108
we like to call this the missing

1357
00:46:33,091 --> 00:46:33,341
middle housing problem but out

1358
00:46:34,691 --> 00:46:34,941
in our rural communities it's

1359
00:46:35,358 --> 00:46:35,608
pretty simple

1360
00:46:37,124 --> 00:46:37,374
our workers want to live where

1361
00:46:38,891 --> 00:46:39,141
they serve but the

1362
00:46:40,624 --> 00:46:40,874
infrastructure and labor costs

1363
00:46:41,358 --> 00:46:41,608
leave our local builders unable

1364
00:46:42,024 --> 00:46:42,274
to meet that demand.

1365
00:46:43,224 --> 00:46:43,474
so what are we supposed to do

1366
00:46:43,891 --> 00:46:44,141
about it

1367
00:46:54,958 --> 00:46:55,208
as some of the previous speakers

1368
00:46:55,624 --> 00:46:55,874
have shown

1369
00:46:59,124 --> 00:46:59,374
it's a familiar sight in small

1370
00:47:00,891 --> 00:47:01,141
towns everywhere and overgrown

1371
00:47:02,624 --> 00:47:02,874
vacant lot stood an awkward leap

1372
00:47:03,291 --> 00:47:03,541
between two well-maintained

1373
00:47:03,824 --> 00:47:04,074
homes

1374
00:47:05,324 --> 00:47:05,574
a patient of mine owned

1375
00:47:08,491 --> 00:47:08,741
one of those now vacant lots

1376
00:47:12,658 --> 00:47:12,908
he and his siblings inherited

1377
00:47:14,424 --> 00:47:14,674
their child at home about 20

1378
00:47:15,091 --> 00:47:15,341
years ago in lawwton.

1379
00:47:16,891 --> 00:47:17,141
but could never agree on what to

1380
00:47:17,558 --> 00:47:17,808
do with it.

1381
00:47:20,624 --> 00:47:20,874
so it sat vacant for years

1382
00:47:23,024 --> 00:47:23,274
and eventually the city

1383
00:47:23,558 --> 00:47:23,808
condemned it

1384
00:47:26,858 --> 00:47:27,108
with code leans piling up far

1385
00:47:29,124 --> 00:47:29,374
beyond the now empty lot's value

1386
00:47:29,824 --> 00:47:30,074
the family just walked away

1387
00:47:32,991 --> 00:47:33,241
now it's just dead weight and

1388
00:47:33,624 --> 00:47:33,874
county rolls

1389
00:47:34,958 --> 00:47:35,208
and somebody's got to mow it

1390
00:47:39,091 --> 00:47:39,341
and there's more baby boomers

1391
00:47:40,891 --> 00:47:41,141
pass away and properties stall

1392
00:47:42,724 --> 00:47:42,974
and probate this won't be an

1393
00:47:43,391 --> 00:47:43,641
isolated incident

1394
00:47:46,858 --> 00:47:47,108
Most of us understand when a

1395
00:47:48,658 --> 00:47:48,908
business opportunity has

1396
00:47:50,658 --> 00:47:50,908
uncertain costs and legal

1397
00:47:52,858 --> 00:47:53,108
unknowns private capital walks

1398
00:47:53,524 --> 00:47:53,774
away every single time

1399
00:47:56,891 --> 00:47:57,141
our local builders won't touch

1400
00:47:58,424 --> 00:47:58,674
these vacant lots because

1401
00:47:59,158 --> 00:47:59,408
clearing the title costs more

1402
00:48:00,458 --> 00:48:00,708
than the dirt itself is worth.

1403
00:48:07,091 --> 00:48:07,341
so one solution

1404
00:48:08,891 --> 00:48:09,141
is a land bank

1405
00:48:12,891 --> 00:48:13,141
as described in previous

1406
00:48:14,891 --> 00:48:15,141
presentations. However, a small

1407
00:48:16,858 --> 00:48:17,108
town of 1500 can't afford to

1408
00:48:18,891 --> 00:48:19,141
hire another attorney for two or

1409
00:48:19,591 --> 00:48:19,841
three overgrown lots a year

1410
00:48:23,091 --> 00:48:23,341
if we force rural towns to build

1411
00:48:25,124 --> 00:48:25,374
urbanstyle land banks from

1412
00:48:26,458 --> 00:48:26,708
scratch they'll fall flat on

1413
00:48:27,124 --> 00:48:27,374
their face

1414
00:48:36,391 --> 00:48:36,641
so this bill has a way around

1415
00:48:38,391 --> 00:48:38,641
that which I do appreciate.

1416
00:48:40,391 --> 00:48:40,641
Rural municipalities take pride

1417
00:48:41,091 --> 00:48:41,341
in running their own affairs

1418
00:48:43,058 --> 00:48:43,308
that's why this is a 100%

1419
00:48:45,091 --> 00:48:45,341
voluntary and towns and counties

1420
00:48:46,691 --> 00:48:46,941
can join hands across judicial

1421
00:48:48,891 --> 00:48:49,141
districts using standard

1422
00:48:51,158 --> 00:48:51,408
interlocal cooperation templates

1423
00:48:54,624 --> 00:48:54,874
that is a long word for that.

1424
00:48:56,491 --> 00:48:56,741
to share legal costs and clean

1425
00:48:57,191 --> 00:48:57,441
up titles in bulk.

1426
00:49:00,858 --> 00:49:01,108
this bill isn't the government

1427
00:49:02,891 --> 00:49:03,141
playing developer it's the

1428
00:49:04,624 --> 00:49:04,874
government getting out of the

1429
00:49:06,624 --> 00:49:06,874
way by clearing legal obstacles

1430
00:49:07,291 --> 00:49:07,541
so builders can actually build

1431
00:49:10,891 --> 00:49:11,141
and because legal fees are

1432
00:49:12,858 --> 00:49:13,108
recovered directly from the land

1433
00:49:14,858 --> 00:49:15,108
bank's property sales it turns

1434
00:49:16,391 --> 00:49:16,641
these vacant lots from zero

1435
00:49:18,891 --> 00:49:19,141
revenue liabilities and to s

1436
00:49:20,624 --> 00:49:20,874
into a self sustaining cycle

1437
00:49:22,458 --> 00:49:22,708
without state constant

1438
00:49:22,924 --> 00:49:23,174
appropriations.

1439
00:49:33,091 --> 00:49:33,341
what should happen to this land

1440
00:49:35,091 --> 00:49:35,341
once the land bank clears up the

1441
00:49:37,358 --> 00:49:37,608
title. We can't let out of state

1442
00:49:38,658 --> 00:49:38,908
private developers swoop in

1443
00:49:40,991 --> 00:49:41,241
put up cheap speculative short

1444
00:49:41,658 --> 00:49:41,908
term rentals

1445
00:49:43,491 --> 00:49:43,741
and drain money out of our rural

1446
00:49:44,124 --> 00:49:44,374
communities.

1447
00:49:47,124 --> 00:49:47,374
Once the land bank clears off

1448
00:49:50,624 --> 00:49:50,874
those old lanes the clean title

1449
00:49:51,291 --> 00:49:51,541
can go directly to community

1450
00:49:53,124 --> 00:49:53,374
partners like our local housing

1451
00:49:54,858 --> 00:49:55,108
authorities rural school

1452
00:49:56,624 --> 00:49:56,874
districts nonprofit builders and

1453
00:49:57,258 --> 00:49:57,508
local contractors who live down

1454
00:49:57,924 --> 00:49:58,174
the street.

1455
00:50:02,391 --> 00:50:02,641
Downtown lots and small towns

1456
00:50:03,091 --> 00:50:03,341
are a great fit for

1457
00:50:03,524 --> 00:50:03,774
organizations like mine.

1458
00:50:06,358 --> 00:50:06,608
since the roads and utilities

1459
00:50:08,391 --> 00:50:08,641
are already there we can turn a

1460
00:50:09,191 --> 00:50:09,441
clean title into a finished home

1461
00:50:09,858 --> 00:50:10,108
in just six months.

1462
00:50:12,824 --> 00:50:13,074
h r land banks we can unlock

1463
00:50:14,591 --> 00:50:14,841
these neglected properties and

1464
00:50:16,458 --> 00:50:16,708
help revitalize communities one

1465
00:50:17,124 --> 00:50:17,374
home at a time

1466
00:50:19,091 --> 00:50:19,341
we just wrapped up building

1467
00:50:22,591 --> 00:50:22,841
a home on Main street in

1468
00:50:24,591 --> 00:50:24,841
Tecumseh on a lot similar to

1469
00:50:25,191 --> 00:50:25,441
something that we could acquire

1470
00:50:25,858 --> 00:50:26,108
from a land bank.

1471
00:50:29,158 --> 00:50:29,408
this loan is actually big enough

1472
00:50:31,091 --> 00:50:31,341
we'll be adding a second home

1473
00:50:33,124 --> 00:50:33,374
there in the future but for now

1474
00:50:34,891 --> 00:50:35,141
at least one family has a safe

1475
00:50:35,558 --> 00:50:35,808
affordable home.

1476
00:50:39,124 --> 00:50:39,374
during this whole process the

1477
00:50:40,891 --> 00:50:41,141
local community retains total

1478
00:50:42,891 --> 00:50:43,141
flexibility if a private builder

1479
00:50:44,858 --> 00:50:45,108
wants to pay a lot for a lot at

1480
00:50:46,858 --> 00:50:47,108
market value great that just

1481
00:50:47,524 --> 00:50:47,774
means the land bank has more

1482
00:50:48,158 --> 00:50:48,408
money

1483
00:50:49,058 --> 00:50:49,308
to do their due

1484
00:50:53,124 --> 00:50:53,374
if the town needs workforce

1485
00:50:54,858 --> 00:50:55,108
housing for local firefighters

1486
00:50:56,624 --> 00:50:56,874
they have the option to add deep

1487
00:50:58,591 --> 00:50:58,841
covenants so the house stays

1488
00:51:00,491 --> 00:51:00,741
affordable for the folks who

1489
00:51:01,058 --> 00:51:01,308
actually keep their town

1490
00:51:01,558 --> 00:51:01,808
running.

1491
00:51:08,658 --> 00:51:08,908
so let's just say this land bank

1492
00:51:12,858 --> 00:51:13,108
legislation passes everything

1493
00:51:14,891 --> 00:51:15,141
works according to plan and now

1494
00:51:16,391 --> 00:51:16,641
the developer has a clean title

1495
00:51:17,191 --> 00:51:17,441
and a plot of land ready to be

1496
00:51:18,791 --> 00:51:19,041
developed. where are they going

1497
00:51:19,458 --> 00:51:19,708
to get the financing?

1498
00:51:22,858 --> 00:51:23,108
Oklahoma already has some great

1499
00:51:24,591 --> 00:51:24,841
tools to help those rural

1500
00:51:26,624 --> 00:51:26,874
developers build new homes like

1501
00:51:29,058 --> 00:51:29,308
the OfA administrated0% home

1502
00:51:31,058 --> 00:51:31,308
stability loans and the Oklahoma

1503
00:51:32,858 --> 00:51:33,108
Housing Trustund which legally

1504
00:51:35,124 --> 00:51:35,374
sets aside65 to75% of its

1505
00:51:36,658 --> 00:51:36,908
dollars for non urban

1506
00:51:37,124 --> 00:51:37,374
communities.

1507
00:51:41,124 --> 00:51:41,374
my organization was the first

1508
00:51:42,891 --> 00:51:43,141
housing authority in the state

1509
00:51:44,758 --> 00:51:45,008
to use the0% home stability

1510
00:51:45,291 --> 00:51:45,541
loans

1511
00:51:48,358 --> 00:51:48,608
the project should be completed

1512
00:51:49,024 --> 00:51:49,274
in November

1513
00:51:52,891 --> 00:51:53,141
it will add 8 new affordable

1514
00:51:54,491 --> 00:51:54,741
housing units to las area near

1515
00:51:55,158 --> 00:51:55,408
Lake Thunderbird.

1516
00:51:57,158 --> 00:51:57,408
right now many of our local

1517
00:52:01,324 --> 00:52:01,574
and rural towns miss out on

1518
00:52:03,124 --> 00:52:03,374
these state programs simply

1519
00:52:04,858 --> 00:52:05,108
because they can't assemble

1520
00:52:06,458 --> 00:52:06,708
clean buildable dirt fast enough

1521
00:52:11,091 --> 00:52:11,341
Lambbank's hand local builders a

1522
00:52:13,158 --> 00:52:13,408
clean padready footprint so they

1523
00:52:14,458 --> 00:52:14,708
can pour concrete on day one.

1524
00:52:18,391 --> 00:52:18,641
Land banks are statutory

1525
00:52:20,391 --> 00:52:20,641
passthrough entities they clear

1526
00:52:21,124 --> 00:52:21,374
the title, pass the dirt to a

1527
00:52:22,858 --> 00:52:23,108
builder and get it back onto the

1528
00:52:24,624 --> 00:52:24,874
county tax rolls to fund our

1529
00:52:25,258 --> 00:52:25,508
local schools in county first

1530
00:52:25,924 --> 00:52:26,174
responders

1531
00:52:28,891 --> 00:52:29,141
a land bank gives our rural

1532
00:52:30,891 --> 00:52:31,141
communities the legal tools to

1533
00:52:31,558 --> 00:52:31,808
build their own future

1534
00:52:32,991 --> 00:52:33,241
thank you so much for your time

1535
00:52:38,624 --> 00:52:38,874
thank you so much Dr I really

1536
00:52:40,391 --> 00:52:40,641
appreciate those examples and

1537
00:52:41,091 --> 00:52:41,341
that it's great to hear about

1538
00:52:42,624 --> 00:52:42,874
the housing stability fund being

1539
00:52:44,658 --> 00:52:44,908
put to work really pleased

1540
00:52:46,391 --> 00:52:46,641
and hope that thought's

1541
00:52:46,858 --> 00:52:47,108
generating lots of opportunities

1542
00:52:49,091 --> 00:52:49,341
all across the state madam

1543
00:52:50,391 --> 00:52:50,641
chairir if you have any

1544
00:52:52,624 --> 00:52:52,874
questions I have one or two but

1545
00:52:53,324 --> 00:52:53,574
defer to you if you have

1546
00:52:56,424 --> 00:52:56,674
anything you wanted to ask. I do

1547
00:52:58,624 --> 00:52:58,874
whoever wants to answer this,

1548
00:53:00,658 --> 00:53:00,908
I'm particularly interested in

1549
00:53:02,391 --> 00:53:02,641
the actual mechanics of how this

1550
00:53:04,658 --> 00:53:04,908
is going to work so what are the

1551
00:53:05,391 --> 00:53:05,641
timelines of

1552
00:53:08,658 --> 00:53:08,908
walk me through the process of

1553
00:53:10,891 --> 00:53:11,141
how long it takes for a property

1554
00:53:12,658 --> 00:53:12,908
to become potentially delinquent

1555
00:53:14,391 --> 00:53:14,641
and at that point and how does

1556
00:53:16,624 --> 00:53:16,874
it actually get put into the

1557
00:53:18,891 --> 00:53:19,141
land bank if this were to be a

1558
00:53:20,891 --> 00:53:21,141
tool that the state had I I'd

1559
00:53:22,624 --> 00:53:22,874
like to understand like what

1560
00:53:23,191 --> 00:53:23,441
that process actually looks

1561
00:53:23,758 --> 00:53:24,008
like.

1562
00:53:25,591 --> 00:53:25,841
Angie is that you

1563
00:53:26,958 --> 00:53:27,208
so

1564
00:53:32,658 --> 00:53:32,908
the process in Oklahoma is about

1565
00:53:34,391 --> 00:53:34,641
a three year process to become

1566
00:53:35,124 --> 00:53:35,374
tax delinquent to go to a tax

1567
00:53:36,858 --> 00:53:37,108
foreclosure sale that's how it

1568
00:53:38,591 --> 00:53:38,841
currently works please somebody

1569
00:53:40,391 --> 00:53:40,641
correct me if I'm off on that

1570
00:53:40,958 --> 00:53:41,208
but it's about a three year

1571
00:53:42,458 --> 00:53:42,708
process before you end up in tax

1572
00:53:43,124 --> 00:53:43,374
foreclosure

1573
00:53:46,891 --> 00:53:47,141
the land bank would be set up

1574
00:53:47,491 --> 00:53:47,741
within the jurisdiction that it

1575
00:53:50,858 --> 00:53:51,108
encompasses and that

1576
00:53:52,358 --> 00:53:52,608
jurisdiction would create the

1577
00:53:53,091 --> 00:53:53,341
process that you're asking about

1578
00:53:55,124 --> 00:53:55,374
so the legislation does not

1579
00:53:58,391 --> 00:53:58,641
speak to that process that is

1580
00:53:59,124 --> 00:53:59,374
set up by the land bank once it

1581
00:54:00,691 --> 00:54:00,941
is established through their

1582
00:54:03,124 --> 00:54:03,374
local bylaws and that would fit

1583
00:54:04,858 --> 00:54:05,108
excuse me that would fit

1584
00:54:06,624 --> 00:54:06,874
whatever the local municipality

1585
00:54:10,591 --> 00:54:10,841
jurisdictions community needs

1586
00:54:12,391 --> 00:54:12,641
are so whatever the the

1587
00:54:13,091 --> 00:54:13,341
community wants and needs that's

1588
00:54:14,591 --> 00:54:14,841
how it will be set up but it

1589
00:54:15,158 --> 00:54:15,408
could be donated from the

1590
00:54:18,824 --> 00:54:19,074
the city let's just say Oklahoma

1591
00:54:20,624 --> 00:54:20,874
cityity the count Oklahohoma

1592
00:54:22,858 --> 00:54:23,108
County Taxmission has a list

1593
00:54:24,858 --> 00:54:25,108
right? They could auction it off

1594
00:54:26,391 --> 00:54:26,641
and we could be the bidder the

1595
00:54:27,091 --> 00:54:27,341
land bank could be the bidder

1596
00:54:28,624 --> 00:54:28,874
they could donate it properly

1597
00:54:30,358 --> 00:54:30,608
they just can't get rid of they

1598
00:54:31,091 --> 00:54:31,341
can donate it the land bank

1599
00:54:32,858 --> 00:54:33,108
if it has funds can purchase

1600
00:54:34,624 --> 00:54:34,874
them at auction. there are just

1601
00:54:35,358 --> 00:54:35,608
a a bunch of different ways that

1602
00:54:36,624 --> 00:54:36,874
that can happen but the the

1603
00:54:40,391 --> 00:54:40,641
the function that you're asking

1604
00:54:41,158 --> 00:54:41,408
about is going to be set up once

1605
00:54:42,891 --> 00:54:43,141
bylaws are created by that

1606
00:54:44,624 --> 00:54:44,874
specific land bank so it stays

1607
00:54:45,324 --> 00:54:45,574
local

1608
00:54:50,358 --> 00:54:50,608
yeah well to that point so I

1609
00:54:52,591 --> 00:54:52,841
mean none of this would speed up

1610
00:54:53,324 --> 00:54:53,574
that foreclosure process or the

1611
00:54:54,858 --> 00:54:55,108
tax delinquency process but on

1612
00:54:58,624 --> 00:54:58,874
the other end if there was a

1613
00:54:59,224 --> 00:54:59,474
procedure in place once a

1614
00:55:01,091 --> 00:55:01,341
property became tax delinquent

1615
00:55:02,858 --> 00:55:03,108
whatever waiting periods have

1616
00:55:05,124 --> 00:55:05,374
already been legally followed

1617
00:55:07,191 --> 00:55:07,441
would I mean what kind of

1618
00:55:08,891 --> 00:55:09,141
timeline would it take if a land

1619
00:55:10,658 --> 00:55:10,908
bank were able to take that

1620
00:55:12,391 --> 00:55:12,641
transfer quickly? could it be a

1621
00:55:13,158 --> 00:55:13,408
six month process shorter what

1622
00:55:15,158 --> 00:55:15,408
what are your thoughts or maybe

1623
00:55:16,858 --> 00:55:17,108
that's a question for maybe

1624
00:55:17,424 --> 00:55:17,674
that's a question for doug

1625
00:55:18,458 --> 00:55:18,708
Ryan to talk about

1626
00:55:20,858 --> 00:55:21,108
I don't know Katrina do you want

1627
00:55:23,158 --> 00:55:23,408
to take that it would also

1628
00:55:25,124 --> 00:55:25,374
depend on what lean so it would

1629
00:55:26,891 --> 00:55:27,141
be it would have to go through

1630
00:55:28,624 --> 00:55:28,874
the process of clearing the

1631
00:55:30,858 --> 00:55:31,108
liens so this is just an

1632
00:55:32,891 --> 00:55:33,141
estimate more of a

1633
00:55:34,858 --> 00:55:35,108
guesstimate probably 3 to6

1634
00:55:36,424 --> 00:55:36,674
months so we would have to

1635
00:55:37,158 --> 00:55:37,408
determine what liens are on

1636
00:55:38,658 --> 00:55:38,908
there what would have to be

1637
00:55:40,891 --> 00:55:41,141
cleared if it's just a matter

1638
00:55:43,158 --> 00:55:43,408
of clearing some tax liens I

1639
00:55:46,391 --> 00:55:46,641
know one example of hearing

1640
00:55:47,391 --> 00:55:47,641
about some medical liens that

1641
00:55:48,491 --> 00:55:48,741
might take a little bit longer

1642
00:55:49,158 --> 00:55:49,408
to clear

1643
00:55:52,391 --> 00:55:52,641
but if it's just coming in from

1644
00:55:53,391 --> 00:55:53,641
tax foreclosure then that would

1645
00:55:55,158 --> 00:55:55,408
be a matter of clearing the

1646
00:55:56,891 --> 00:55:57,141
clearing the title taking it

1647
00:55:58,658 --> 00:55:58,908
through that process for

1648
00:56:01,124 --> 00:56:01,374
Oklahoma knowing about the

1649
00:56:03,158 --> 00:56:03,408
typical foreclosure process I

1650
00:56:04,891 --> 00:56:05,141
would say an estimate of 3 to6

1651
00:56:09,158 --> 00:56:09,408
months would you comment on I'm

1652
00:56:12,391 --> 00:56:12,641
assuming that this could be

1653
00:56:13,191 --> 00:56:13,441
there could be a stipulation

1654
00:56:14,891 --> 00:56:15,141
that these properties would only

1655
00:56:17,391 --> 00:56:17,641
go into commercial use or or

1656
00:56:18,658 --> 00:56:18,908
private ownership so you know

1657
00:56:19,324 --> 00:56:19,574
since

1658
00:56:20,891 --> 00:56:21,141
nonprofits don't pay property

1659
00:56:22,391 --> 00:56:22,641
tax I just want to spell out

1660
00:56:23,358 --> 00:56:23,608
that like a county could create

1661
00:56:24,924 --> 00:56:25,174
a land bank and then they could

1662
00:56:26,391 --> 00:56:26,641
require that that property only

1663
00:56:27,124 --> 00:56:27,374
be transferred to future

1664
00:56:29,124 --> 00:56:29,374
taxpaying ownership right

1665
00:56:33,091 --> 00:56:33,341
yes so the once the property is

1666
00:56:34,891 --> 00:56:35,141
transferred from the land bank

1667
00:56:36,891 --> 00:56:37,141
to whichever entity or private

1668
00:56:39,158 --> 00:56:39,408
citizen or construction

1669
00:56:40,891 --> 00:56:41,141
developer that that that five

1670
00:56:42,891 --> 00:56:43,141
year sharing tax revenue

1671
00:56:44,658 --> 00:56:44,908
sharing plan goes into place and

1672
00:56:45,324 --> 00:56:45,574
then after that it goes straight

1673
00:56:45,991 --> 00:56:46,241
to the county

1674
00:56:50,391 --> 00:56:50,641
tax commissioner you can also

1675
00:56:51,124 --> 00:56:51,374
s stipulate within the deeds

1676
00:56:53,158 --> 00:56:53,408
that it stay within a taxc

1677
00:56:53,724 --> 00:56:53,974
creating use

1678
00:56:56,924 --> 00:56:57,174
deed restrictions are definitely

1679
00:56:58,391 --> 00:56:58,641
allowed and again that's going

1680
00:56:58,991 --> 00:56:59,241
to serve whatever jurisdiction

1681
00:56:59,691 --> 00:56:59,941
or municipality that it's in

1682
00:57:02,891 --> 00:57:03,141
and then I just have one

1683
00:57:03,391 --> 00:57:03,641
question for Doug. Doug, would

1684
00:57:05,124 --> 00:57:05,374
you speak specifically to

1685
00:57:08,391 --> 00:57:08,641
examples you've seen in rural

1686
00:57:10,624 --> 00:57:10,874
areas where you think this is an

1687
00:57:11,291 --> 00:57:11,541
effective process

1688
00:57:15,324 --> 00:57:15,574
Yeah, sure absolutely I do think

1689
00:57:16,858 --> 00:57:17,108
there's a couple examples and I

1690
00:57:19,124 --> 00:57:19,374
noted that Ohio has expanded

1691
00:57:21,091 --> 00:57:21,341
their land bank authority so

1692
00:57:22,858 --> 00:57:23,108
many rural counties in in that

1693
00:57:24,858 --> 00:57:25,108
state do have land banks and I

1694
00:57:26,391 --> 00:57:26,641
think they're just starting to

1695
00:57:27,124 --> 00:57:27,374
get off the ground in some cases

1696
00:57:28,658 --> 00:57:28,908
and I'd be happy to provide more

1697
00:57:30,391 --> 00:57:30,641
examples but I do think some

1698
00:57:31,091 --> 00:57:31,341
other examples include Kentucky

1699
00:57:32,891 --> 00:57:33,141
where land banks have been

1700
00:57:35,124 --> 00:57:35,374
fairly effective it seems to me

1701
00:57:36,624 --> 00:57:36,874
from my my reading what's

1702
00:57:39,124 --> 00:57:39,374
going on in Kentucky and a

1703
00:57:40,691 --> 00:57:40,941
couple of other places too. I

1704
00:57:42,491 --> 00:57:42,741
mentioned Indiana and Kansas. I

1705
00:57:43,158 --> 00:57:43,408
do think there's

1706
00:57:45,058 --> 00:57:45,308
a there is some recognition that

1707
00:57:46,891 --> 00:57:47,141
a lot of this did begin in urban

1708
00:57:48,891 --> 00:57:49,141
areas but it has moved to be

1709
00:57:50,658 --> 00:57:50,908
more to be an effective tool in

1710
00:57:52,391 --> 00:57:52,641
rural areas but I think what's

1711
00:57:53,124 --> 00:57:53,374
critical to understand and again

1712
00:57:54,858 --> 00:57:55,108
I'm happy to build out more

1713
00:57:56,924 --> 00:57:57,174
examples as a follow up is

1714
00:57:57,491 --> 00:57:57,741
that

1715
00:58:00,358 --> 00:58:00,608
because these are really locally

1716
00:58:01,058 --> 00:58:01,308
controlled you can respond to

1717
00:58:04,624 --> 00:58:04,874
land bank process can respond to

1718
00:58:05,324 --> 00:58:05,574
their local conditions on the

1719
00:58:08,391 --> 00:58:08,641
ground and put in priorities

1720
00:58:09,124 --> 00:58:09,374
for commercial use for for

1721
00:58:11,124 --> 00:58:11,374
taxable use or for housing and I

1722
00:58:12,624 --> 00:58:12,874
think that's critically

1723
00:58:13,124 --> 00:58:13,374
important as some of my

1724
00:58:14,858 --> 00:58:15,108
colleagues had identified but

1725
00:58:16,391 --> 00:58:16,641
there are definitely some good

1726
00:58:17,058 --> 00:58:17,308
examples out there and I'd be

1727
00:58:18,491 --> 00:58:18,741
happy to get some more specifics

1728
00:58:21,091 --> 00:58:21,341
Great I appreciate that I means

1729
00:58:22,691 --> 00:58:22,941
and also some of the biggest

1730
00:58:27,091 --> 00:58:27,341
housing work being done in our

1731
00:58:28,891 --> 00:58:29,141
states by tribal governments and

1732
00:58:29,591 --> 00:58:29,841
I think that's really important

1733
00:58:30,891 --> 00:58:31,141
to look at those relationships

1734
00:58:33,091 --> 00:58:33,341
too OKok any last questions

1735
00:58:40,391 --> 00:58:40,641
I think we will wrap up you all

1736
00:58:41,124 --> 00:58:41,374
have been incredibly efficient

1737
00:58:42,891 --> 00:58:43,141
thank you for making this work.

1738
00:58:44,358 --> 00:58:44,608
I think it's awesome to be able

1739
00:58:46,858 --> 00:58:47,108
to connect this tool as an

1740
00:58:48,891 --> 00:58:49,141
option in this day of looking at

1741
00:58:50,624 --> 00:58:50,874
those ways that we can improve

1742
00:58:52,891 --> 00:58:53,141
housing supply I think you

1743
00:58:54,391 --> 00:58:54,641
know one of the great things

1744
00:58:55,124 --> 00:58:55,374
about this option is they can

1745
00:58:57,124 --> 00:58:57,374
help us you know build that

1746
00:58:59,158 --> 00:58:59,408
starter home ownership option

1747
00:59:02,391 --> 00:59:02,641
and affordable homes along with

1748
00:59:03,124 --> 00:59:03,374
having the priority of thriving

1749
00:59:04,924 --> 00:59:05,174
communities and looking at that

1750
00:59:05,558 --> 00:59:05,808
deep challenge that our

1751
00:59:06,091 --> 00:59:06,341
communities face with vacant

1752
00:59:08,624 --> 00:59:08,874
and abandoned properties

1753
00:59:10,624 --> 00:59:10,874
underutilized properties and how

1754
00:59:12,891 --> 00:59:13,141
we can get them active and

1755
00:59:14,624 --> 00:59:14,874
serving good purposes again so

1756
00:59:16,624 --> 00:59:16,874
I'm thrilled to to put this

1757
00:59:17,224 --> 00:59:17,474
forward as a possible tool and

1758
00:59:18,891 --> 00:59:19,141
appreciate having the time to

1759
00:59:20,891 --> 00:59:21,141
focus on this and you know

1760
00:59:22,891 --> 00:59:23,141
helping more Oklahomans have

1761
00:59:24,391 --> 00:59:24,641
options for the American dream

1762
00:59:25,091 --> 00:59:25,341
so thank you very much madam

1763
00:59:25,758 --> 00:59:26,008
chairir.

1764
00:59:28,624 --> 00:59:28,874
thank you senatorkirk thank you

1765
00:59:30,391 --> 00:59:30,641
all for joining us today we're

1766
00:59:31,024 --> 00:59:31,274
going to take a quick break and

1767
00:59:32,458 --> 00:59:32,708
we will be back with

1768
00:59:32,891 --> 00:59:33,141
Senatorallaer.

1769
00:59:34,924 --> 00:59:35,174
thank you so much

1770
01:07:50,658 --> 01:07:50,908
OK thank you everyone we are

1771
01:07:51,258 --> 01:07:51,508
ahead of schedule

1772
01:07:52,924 --> 01:07:53,174
it's how I like to run things if

1773
01:07:54,891 --> 01:07:55,141
you've been in this committee

1774
01:07:57,191 --> 01:07:57,441
ever before Senatoralahar are

1775
01:07:59,158 --> 01:07:59,408
all of your presenters here your

1776
01:08:01,191 --> 01:08:01,441
speakers everybody ready?

1777
01:08:02,424 --> 01:08:02,674
Yes madamir

1778
01:08:04,658 --> 01:08:04,908
little housekeeping just like

1779
01:08:06,658 --> 01:08:06,908
last time very casual, I'll let

1780
01:08:08,691 --> 01:08:08,941
you run your meeting you

1781
01:08:09,191 --> 01:08:09,441
don't have to work through the

1782
01:08:11,191 --> 01:08:11,441
chair opening up for questions

1783
01:08:12,658 --> 01:08:12,908
and with that Senatoralahar

1784
01:08:13,224 --> 01:08:13,474
floor' yours

1785
01:08:15,358 --> 01:08:15,608
thank you madam chairman first

1786
01:08:18,424 --> 01:08:18,674
time to welcome everybody to the

1787
01:08:19,224 --> 01:08:19,474
interim study on increasing

1788
01:08:20,924 --> 01:08:21,174
workforce housing production

1789
01:08:22,391 --> 01:08:22,641
through public private

1790
01:08:24,424 --> 01:08:24,674
partnerships I think this is

1791
01:08:25,224 --> 01:08:25,474
extremely valuable

1792
01:08:26,624 --> 01:08:26,874
information will be presented

1793
01:08:28,424 --> 01:08:28,674
today and I'm looking forward to

1794
01:08:30,424 --> 01:08:30,674
the presentations and with that

1795
01:08:31,124 --> 01:08:31,374
I'd like to get started madam

1796
01:08:32,924 --> 01:08:33,174
chairirman I'd like to ask

1797
01:08:37,191 --> 01:08:37,441
Tyler Perre to of

1798
01:08:38,924 --> 01:08:39,174
housing forward to starts

1799
01:08:40,424 --> 01:08:40,674
presentations thank you so

1800
01:08:41,191 --> 01:08:41,441
muchsenator thank you madam

1801
01:08:42,691 --> 01:08:42,941
chairir my name is Tyler Perret

1802
01:08:43,358 --> 01:08:43,608
I'm the executive director of

1803
01:08:45,424 --> 01:08:45,674
Housing forward housing

1804
01:08:47,224 --> 01:08:47,474
forward is a two year old

1805
01:08:48,658 --> 01:08:48,908
nonprofit here in the state of

1806
01:08:50,658 --> 01:08:50,908
Oklahoma focused on research

1807
01:08:52,624 --> 01:08:52,874
housing and housing production

1808
01:08:55,191 --> 01:08:55,441
I think as evidenced by the

1809
01:08:56,658 --> 01:08:56,908
number of interim studies today

1810
01:08:57,458 --> 01:08:57,708
on kind of a breadth of issues

1811
01:08:58,891 --> 01:08:59,141
facing housing and housing

1812
01:09:01,224 --> 01:09:01,474
production we can see that

1813
01:09:02,924 --> 01:09:03,174
there is no silver bullet to

1814
01:09:04,924 --> 01:09:05,174
solving issues around

1815
01:09:06,658 --> 01:09:06,908
affordability starter home

1816
01:09:08,658 --> 01:09:08,908
issues and so I think what

1817
01:09:10,658 --> 01:09:10,908
you'll see in in the breadth of

1818
01:09:11,391 --> 01:09:11,641
speakers today but certainly in

1819
01:09:12,658 --> 01:09:12,908
the presentation as well is that

1820
01:09:13,324 --> 01:09:13,574
there's a lot of

1821
01:09:15,224 --> 01:09:15,474
opportunity for us to improve

1822
01:09:17,191 --> 01:09:17,441
the environment to increase

1823
01:09:18,658 --> 01:09:18,908
workforce housing production and

1824
01:09:20,391 --> 01:09:20,641
to increase our ability to meet

1825
01:09:21,191 --> 01:09:21,441
the needs of Oklahomans across

1826
01:09:24,391 --> 01:09:24,641
the state so I'll talk just

1827
01:09:24,924 --> 01:09:25,174
briefly here about what we're

1828
01:09:26,624 --> 01:09:26,874
going to try to cover in a quick

1829
01:09:28,658 --> 01:09:28,908
hour I'll zoom through some

1830
01:09:30,891 --> 01:09:31,141
of the the data around kind of

1831
01:09:32,391 --> 01:09:32,641
where we are in the state of

1832
01:09:34,924 --> 01:09:35,174
Oklahoma around housing and

1833
01:09:35,491 --> 01:09:35,741
housing production

1834
01:09:36,958 --> 01:09:37,208
representative from the Oklahoma

1835
01:09:38,658 --> 01:09:38,908
orklahoma uniformBuilding

1836
01:09:40,424 --> 01:09:40,674
codecommission David atdcock

1837
01:09:42,424 --> 01:09:42,674
we'll speak briefly on some

1838
01:09:42,991 --> 01:09:43,241
building code reform and kind of

1839
01:09:43,658 --> 01:09:43,908
what the OUBcc

1840
01:09:45,191 --> 01:09:45,441
does and some progress that's

1841
01:09:48,391 --> 01:09:48,641
happening in that space and then

1842
01:09:50,391 --> 01:09:50,641
we'll talk more substantially

1843
01:09:52,391 --> 01:09:52,641
about the21st century road to

1844
01:09:54,624 --> 01:09:54,874
housing actct which was federal

1845
01:09:55,258 --> 01:09:55,508
legislation that passed in July

1846
01:09:57,124 --> 01:09:57,374
of last year and kind of how

1847
01:09:59,158 --> 01:09:59,408
Oklahoma stands to benefit from

1848
01:10:00,658 --> 01:10:00,908
some elements of that

1849
01:10:02,391 --> 01:10:02,641
legislation and how we need to

1850
01:10:03,191 --> 01:10:03,441
prepare the state to take

1851
01:10:04,924 --> 01:10:05,174
advantage of a lot of those

1852
01:10:06,891 --> 01:10:07,141
particular opportunities and

1853
01:10:08,891 --> 01:10:09,141
then if we have time I'll opine

1854
01:10:10,891 --> 01:10:11,141
generously about some new

1855
01:10:12,658 --> 01:10:12,908
research around housing on

1856
01:10:13,191 --> 01:10:13,441
faith based

1857
01:10:15,158 --> 01:10:15,408
property and kind of

1858
01:10:16,624 --> 01:10:16,874
unlocking opportunities for that

1859
01:10:18,924 --> 01:10:19,174
so just briefly I mentioned

1860
01:10:20,391 --> 01:10:20,641
Housing forward is a relatively

1861
01:10:21,124 --> 01:10:21,374
new organization in the state we

1862
01:10:22,924 --> 01:10:23,174
believe in an Oklahoma where

1863
01:10:24,658 --> 01:10:24,908
everyone has the freedom freedom

1864
01:10:25,324 --> 01:10:25,574
to live in a home that fits

1865
01:10:26,624 --> 01:10:26,874
their needs their life and their

1866
01:10:27,391 --> 01:10:27,641
future and and really what that

1867
01:10:28,891 --> 01:10:29,141
means is we all need different

1868
01:10:30,658 --> 01:10:30,908
housing typologies across our

1869
01:10:32,924 --> 01:10:33,174
life cycle many of us have lived

1870
01:10:34,924 --> 01:10:35,174
in an apartment many of us have

1871
01:10:36,891 --> 01:10:37,141
lived in a rental house many of

1872
01:10:38,624 --> 01:10:38,874
us own our own homes but we

1873
01:10:39,424 --> 01:10:39,674
don't all do all of those things

1874
01:10:40,658 --> 01:10:40,908
at the same time and we need

1875
01:10:42,424 --> 01:10:42,674
different housing typologies

1876
01:10:43,024 --> 01:10:43,274
across our life cycle and so

1877
01:10:45,424 --> 01:10:45,674
really the work that we do

1878
01:10:46,924 --> 01:10:47,174
focuses on making sure that that

1879
01:10:48,658 --> 01:10:48,908
stock exists so that we can have

1880
01:10:50,458 --> 01:10:50,708
a thro a thriving housing

1881
01:10:51,024 --> 01:10:51,274
ecosystem

1882
01:10:54,624 --> 01:10:54,874
and then obviously we we

1883
01:10:55,424 --> 01:10:55,674
exist to deliver some

1884
01:10:56,891 --> 01:10:57,141
practical solutions and present

1885
01:10:58,891 --> 01:10:59,141
research to to inform policy

1886
01:11:00,658 --> 01:11:00,908
decisions that that bring about

1887
01:11:01,324 --> 01:11:01,574
that reality

1888
01:11:04,858 --> 01:11:05,108
so real quick I'll jump into

1889
01:11:06,624 --> 01:11:06,874
just the state of housing in

1890
01:11:08,391 --> 01:11:08,641
Oklahoma what we've seen over

1891
01:11:09,124 --> 01:11:09,374
the past few years is that the

1892
01:11:10,891 --> 01:11:11,141
rate of home home ownership in

1893
01:11:14,391 --> 01:11:14,641
Oklahoma is declining we used to

1894
01:11:16,391 --> 01:11:16,641
be relatively moderate in our

1895
01:11:18,391 --> 01:11:18,641
positioning state by state in

1896
01:11:19,124 --> 01:11:19,374
the rates of homeownership and

1897
01:11:20,458 --> 01:11:20,708
we're seeing that we dropped

1898
01:11:22,658 --> 01:11:22,908
to41st in just last year

1899
01:11:23,258 --> 01:11:23,508
according to the US Census

1900
01:11:26,391 --> 01:11:26,641
Bureau there's a lot of reasons

1901
01:11:28,624 --> 01:11:28,874
for that but one of them is that

1902
01:11:30,858 --> 01:11:31,108
home prices are continuing to

1903
01:11:31,524 --> 01:11:31,774
increase while incomes

1904
01:11:34,658 --> 01:11:34,908
are increasing at a relatively

1905
01:11:37,124 --> 01:11:37,374
modest rate so there's a lot

1906
01:11:38,624 --> 01:11:38,874
of opportunities that we have at

1907
01:11:40,624 --> 01:11:40,874
the table to start to slow that

1908
01:11:42,858 --> 01:11:43,108
spread between income and home

1909
01:11:46,391 --> 01:11:46,641
price or rental price and again

1910
01:11:47,091 --> 01:11:47,341
many of those have been talked

1911
01:11:48,391 --> 01:11:48,641
about today and other interim

1912
01:11:48,991 --> 01:11:49,241
studies but we're going to talk

1913
01:11:50,658 --> 01:11:50,908
about a few as we move

1914
01:11:51,191 --> 01:11:51,441
through the presentation today

1915
01:11:54,624 --> 01:11:54,874
one of the things that I will

1916
01:11:56,658 --> 01:11:56,908
note is we are seeing some

1917
01:11:58,391 --> 01:11:58,641
pretty significant demographic

1918
01:12:00,391 --> 01:12:00,641
changes across the state

1919
01:12:02,658 --> 01:12:02,908
where we used to see household

1920
01:12:06,391 --> 01:12:06,641
sizes average above 3 people we

1921
01:12:07,124 --> 01:12:07,374
are now seeing household sizes

1922
01:12:08,924 --> 01:12:09,174
average at two people and the

1923
01:12:10,624 --> 01:12:10,874
most common household size

1924
01:12:11,224 --> 01:12:11,474
across the state of Oklahoma is

1925
01:12:13,158 --> 01:12:13,408
two people typically living in

1926
01:12:15,124 --> 01:12:15,374
the same bedroom but our

1927
01:12:18,624 --> 01:12:18,874
house size itself is only

1928
01:12:20,424 --> 01:12:20,674
increasing and now the average

1929
01:12:21,091 --> 01:12:21,341
size of that is roughly2

1930
01:12:25,091 --> 01:12:25,341
400 square feet. so there

1931
01:12:26,691 --> 01:12:26,941
again as many reasons for that

1932
01:12:28,391 --> 01:12:28,641
that we can talk through today

1933
01:12:29,191 --> 01:12:29,441
but one of them is that we've

1934
01:12:31,124 --> 01:12:31,374
we've really honed in on one

1935
01:12:32,658 --> 01:12:32,908
particular housing typology in

1936
01:12:34,391 --> 01:12:34,641
the state of Oklahoma which is

1937
01:12:36,391 --> 01:12:36,641
the detached single family home

1938
01:12:37,358 --> 01:12:37,608
in Greenfield development and

1939
01:12:39,124 --> 01:12:39,374
so really what we are interested

1940
01:12:40,924 --> 01:12:41,174
in doing across the state is

1941
01:12:42,624 --> 01:12:42,874
diversifying the number of

1942
01:12:44,424 --> 01:12:44,674
housing typologies that we have

1943
01:12:46,424 --> 01:12:46,674
so that we can continue to match

1944
01:12:47,091 --> 01:12:47,341
the demographic trends we're

1945
01:12:47,724 --> 01:12:47,974
seeing from the population

1946
01:12:50,891 --> 01:12:51,141
and with that I'm gonna turn

1947
01:12:52,891 --> 01:12:53,141
it over to David adcock the

1948
01:12:54,858 --> 01:12:55,108
CEO of OUBcC to talk more

1949
01:12:56,658 --> 01:12:56,908
specifically about building code

1950
01:12:58,658 --> 01:12:58,908
and how reform happens in the

1951
01:12:59,324 --> 01:12:59,574
state of Oklahoma.

1952
01:13:00,491 --> 01:13:00,741
thank you

1953
01:13:04,891 --> 01:13:05,141
you as you said umm David adcock

1954
01:13:06,624 --> 01:13:06,874
I'm the CEO of Oklahoma

1955
01:13:08,391 --> 01:13:08,641
uniformedtting Code Commission.

1956
01:13:11,091 --> 01:13:11,341
we were established in2009

1957
01:13:12,691 --> 01:13:12,941
and we were established to

1958
01:13:17,124 --> 01:13:17,374
create a statewide building

1959
01:13:18,491 --> 01:13:18,741
code. just keep working

1960
01:13:22,391 --> 01:13:22,641
it's the off it's the offseason

1961
01:13:23,024 --> 01:13:23,274
in the capitals so we're just

1962
01:13:24,658 --> 01:13:24,908
going to have to keep pushing

1963
01:13:26,624 --> 01:13:26,874
good that construction happens

1964
01:13:28,391 --> 01:13:28,641
exactly as David starts and it's

1965
01:13:30,624 --> 01:13:30,874
kind of amazing very very yes

1966
01:13:33,158 --> 01:13:33,408
appropriate there so yes we were

1967
01:13:35,191 --> 01:13:35,441
we were established in2009 to

1968
01:13:38,924 --> 01:13:39,174
create a minimum building code

1969
01:13:40,624 --> 01:13:40,874
for residential and commercial

1970
01:13:42,891 --> 01:13:43,141
construction to be used for

1971
01:13:46,391 --> 01:13:46,641
all entities in the state umri

1972
01:13:48,458 --> 01:13:48,708
to that there was no review

1973
01:13:49,024 --> 01:13:49,274
process

1974
01:13:51,391 --> 01:13:51,641
of any code. there was national

1975
01:13:53,158 --> 01:13:53,408
code or national model codes

1976
01:13:54,658 --> 01:13:54,908
available that were being

1977
01:13:56,391 --> 01:13:56,641
adopted by the state but they

1978
01:13:58,358 --> 01:13:58,608
were being adopted as published

1979
01:14:00,624 --> 01:14:00,874
the industry as a whole came

1980
01:14:03,124 --> 01:14:03,374
together and looked at what

1981
01:14:04,691 --> 01:14:04,941
could be done and asked the

1982
01:14:06,691 --> 01:14:06,941
legislature to create a process

1983
01:14:08,391 --> 01:14:08,641
that these codes would be

1984
01:14:10,658 --> 01:14:10,908
reviewed prior to their adoption

1985
01:14:12,358 --> 01:14:12,608
to see what was best for

1986
01:14:14,358 --> 01:14:14,608
Oklahoma and create again a

1987
01:14:15,191 --> 01:14:15,441
minimum standard for the state

1988
01:14:18,458 --> 01:14:18,708
of Oklahoma and construction

1989
01:14:19,024 --> 01:14:19,274
the the model codes are

1990
01:14:21,124 --> 01:14:21,374
are published every three years

1991
01:14:22,891 --> 01:14:23,141
with multiple changes in those

1992
01:14:24,891 --> 01:14:25,141
three year periods so there

1993
01:14:26,891 --> 01:14:27,141
was a need to look at those

1994
01:14:28,391 --> 01:14:28,641
changes and not just

1995
01:14:29,358 --> 01:14:29,608
automatically adopt what came

1996
01:14:30,024 --> 01:14:30,274
came through on those

1997
01:14:34,691 --> 01:14:34,941
so the process that was

1998
01:14:36,391 --> 01:14:36,641
developed by the commission was

1999
01:14:40,358 --> 01:14:40,608
there are several codes first

2000
01:14:40,958 --> 01:14:41,208
of all there are several codes

2001
01:14:44,358 --> 01:14:44,608
that the that we look at

2002
01:14:45,358 --> 01:14:45,608
including the fire code and

2003
01:14:46,624 --> 01:14:46,874
plumbing code and mechanical

2004
01:14:48,391 --> 01:14:48,641
code electrical code building

2005
01:14:49,091 --> 01:14:49,341
code and then the residential

2006
01:14:52,891 --> 01:14:53,141
code these are all

2007
01:14:55,091 --> 01:14:55,341
individually reviewed by a

2008
01:14:56,891 --> 01:14:57,141
committee that committee is made

2009
01:14:58,658 --> 01:14:58,908
up of volunteers that the

2010
01:15:00,458 --> 01:15:00,708
committee selects from that

2011
01:15:01,024 --> 01:15:01,274
volunteer

2012
01:15:03,091 --> 01:15:03,341
list and it's based on their

2013
01:15:04,658 --> 01:15:04,908
background and their expertise

2014
01:15:06,891 --> 01:15:07,141
in that code related to what we

2015
01:15:08,658 --> 01:15:08,908
will be reviewing for that

2016
01:15:09,258 --> 01:15:09,508
technical committee so

2017
01:15:13,324 --> 01:15:13,574
the commission then solicits

2018
01:15:15,124 --> 01:15:15,374
changes and change proposals to

2019
01:15:18,391 --> 01:15:18,641
those national codes so the

2020
01:15:19,124 --> 01:15:19,374
public and the industry as a

2021
01:15:22,624 --> 01:15:22,874
whole also can then submit those

2022
01:15:24,391 --> 01:15:24,641
code change proposals that

2023
01:15:25,091 --> 01:15:25,341
the technical committee then

2024
01:15:28,391 --> 01:15:28,641
will review and take action on

2025
01:15:29,158 --> 01:15:29,408
either deny or approve or even

2026
01:15:32,924 --> 01:15:33,174
modify those amendments from

2027
01:15:33,591 --> 01:15:33,841
that

2028
01:15:36,858 --> 01:15:37,108
the committee develops a

2029
01:15:38,591 --> 01:15:38,841
presentation for the commission

2030
01:15:39,258 --> 01:15:39,508
it's

2031
01:15:42,358 --> 01:15:42,608
presented then to the commission

2032
01:15:44,424 --> 01:15:44,674
and the commission moves on into

2033
01:15:46,624 --> 01:15:46,874
the rule making process and

2034
01:15:48,624 --> 01:15:48,874
going to the legislature for

2035
01:15:49,291 --> 01:15:49,541
approval for the code.

2036
01:15:54,391 --> 01:15:54,641
so again OUBcC and and what we

2037
01:15:58,658 --> 01:15:58,908
do we we were created one the

2038
01:16:00,891 --> 01:16:01,141
priority was to create this

2039
01:16:02,691 --> 01:16:02,941
minimum state standard for

2040
01:16:04,658 --> 01:16:04,908
construction and then also

2041
01:16:05,258 --> 01:16:05,508
provide training

2042
01:16:08,924 --> 01:16:09,174
throughout the industry in these

2043
01:16:11,124 --> 01:16:11,374
codes that are adopted to

2044
01:16:14,391 --> 01:16:14,641
increase consistency in the

2045
01:16:17,124 --> 01:16:17,374
compliance and regulation of

2046
01:16:19,358 --> 01:16:19,608
those codes one of the things

2047
01:16:22,891 --> 01:16:23,141
that that plague builders and

2048
01:16:24,891 --> 01:16:25,141
the industry as a whole is

2049
01:16:26,624 --> 01:16:26,874
different interpretations of

2050
01:16:28,624 --> 01:16:28,874
those codes you would think

2051
01:16:30,624 --> 01:16:30,874
it would be black and white but

2052
01:16:32,658 --> 01:16:32,908
sometimes it's not you can

2053
01:16:33,291 --> 01:16:33,541
interpret these codes in

2054
01:16:36,458 --> 01:16:36,708
different ways OUBcC has also

2055
01:16:37,124 --> 01:16:37,374
created a

2056
01:16:38,924 --> 01:16:39,174
a formal interpretation

2057
01:16:40,891 --> 01:16:41,141
process for the amendments that

2058
01:16:43,124 --> 01:16:43,374
they do so that again

2059
01:16:45,124 --> 01:16:45,374
reducing the number of ways it

2060
01:16:46,924 --> 01:16:47,174
can be interpreted and

2061
01:16:48,924 --> 01:16:49,174
increasing consistencies these

2062
01:16:50,424 --> 01:16:50,674
consistencies are what sometimes

2063
01:16:52,658 --> 01:16:52,908
will hold up construction

2064
01:16:54,624 --> 01:16:54,874
jobs even in the planning stages

2065
01:16:56,624 --> 01:16:56,874
so again through that

2066
01:16:58,624 --> 01:16:58,874
training process is one way

2067
01:17:00,658 --> 01:17:00,908
we try to reduce that

2068
01:17:04,691 --> 01:17:04,941
but one of the things our our

2069
01:17:06,391 --> 01:17:06,641
process does is try to be

2070
01:17:08,624 --> 01:17:08,874
inclusive and try to get

2071
01:17:10,424 --> 01:17:10,674
everybody involved since I've

2072
01:17:12,391 --> 01:17:12,641
been there in23 we have

2073
01:17:14,391 --> 01:17:14,641
increased that but that

2074
01:17:16,891 --> 01:17:17,141
really is the the point behind

2075
01:17:19,158 --> 01:17:19,408
what we do is there's an

2076
01:17:21,124 --> 01:17:21,374
opportunity for everybody to be

2077
01:17:22,924 --> 01:17:23,174
involved in what the state

2078
01:17:25,158 --> 01:17:25,408
construction code is and in

2079
01:17:27,158 --> 01:17:27,408
doing through going through our

2080
01:17:30,624 --> 01:17:30,874
process I think it's it's a

2081
01:17:31,191 --> 01:17:31,441
good process we just need to get

2082
01:17:31,858 --> 01:17:32,108
more people

2083
01:17:32,458 --> 01:17:32,708
involved in doing that

2084
01:17:38,391 --> 01:17:38,641
it's a good example tyler's

2085
01:17:39,124 --> 01:17:39,374
group housing forward came to us

2086
01:17:40,624 --> 01:17:40,874
while we were reviewing the

2087
01:17:42,391 --> 01:17:42,641
international residential code

2088
01:17:44,891 --> 01:17:45,141
and made some proposals that we

2089
01:17:48,391 --> 01:17:48,641
had to deny simply because they

2090
01:17:50,624 --> 01:17:50,874
would cause conflict with the

2091
01:17:52,391 --> 01:17:52,641
other codes that we had adopted

2092
01:17:54,891 --> 01:17:55,141
so we actually created a

2093
01:17:58,391 --> 01:17:58,641
committee I think his his

2094
01:17:59,158 --> 01:17:59,408
group prem presented with

2095
01:18:01,158 --> 01:18:01,408
amendment after amending their

2096
01:18:02,624 --> 01:18:02,874
initial propo

2097
01:18:06,391 --> 01:18:06,641
s al s in July we had a

2098
01:18:08,358 --> 01:18:08,608
committee a special committee

2099
01:18:08,958 --> 01:18:09,208
together by august

2100
01:18:14,391 --> 01:18:14,641
and we're already meeting and

2101
01:18:15,091 --> 01:18:15,341
we've finished that actual

2102
01:18:17,091 --> 01:18:17,341
committee and there are

2103
01:18:18,858 --> 01:18:19,108
proposals that came out of that

2104
01:18:21,058 --> 01:18:21,308
committee that will affect now

2105
01:18:24,391 --> 01:18:24,641
the24 codes that that go into

2106
01:18:25,058 --> 01:18:25,308
win into effect September 14th

2107
01:18:30,991 --> 01:18:31,241
so yeah ok go ahead

2108
01:18:35,091 --> 01:18:35,341
yeah so as as David mentioned

2109
01:18:40,624 --> 01:18:40,874
building code change should not

2110
01:18:42,891 --> 01:18:43,141
happen quickly and it doesn't

2111
01:18:44,624 --> 01:18:44,874
and that's a good thing we we

2112
01:18:45,258 --> 01:18:45,508
want there to be consistency in

2113
01:18:47,124 --> 01:18:47,374
code and so I think what what

2114
01:18:49,158 --> 01:18:49,408
we have now in in working its

2115
01:18:52,391 --> 01:18:52,641
way through the process at OUBcc

2116
01:18:53,158 --> 01:18:53,408
is representative of a lot of

2117
01:18:54,858 --> 01:18:55,108
feedback a lot of conversation,

2118
01:18:57,124 --> 01:18:57,374
a lot of presentation by experts

2119
01:18:58,691 --> 01:18:58,941
some experts across the country

2120
01:19:02,391 --> 01:19:02,641
and what we see now is is a

2121
01:19:04,891 --> 01:19:05,141
pretty modest and moderate

2122
01:19:06,624 --> 01:19:06,874
path forward in some of these

2123
01:19:07,291 --> 01:19:07,541
building code reforms

2124
01:19:10,858 --> 01:19:11,108
that I think based on my

2125
01:19:12,591 --> 01:19:12,841
opinion creates a potential new

2126
01:19:14,358 --> 01:19:14,608
best practice for a lot of

2127
01:19:15,291 --> 01:19:15,541
states in the country and and

2128
01:19:18,391 --> 01:19:18,641
just to to contrast a little bit

2129
01:19:19,091 --> 01:19:19,341
about what we've seen in some

2130
01:19:20,658 --> 01:19:20,908
other states we've seen a lot of

2131
01:19:22,391 --> 01:19:22,641
whiplash around building code

2132
01:19:24,391 --> 01:19:24,641
reform over the past few years

2133
01:19:25,091 --> 01:19:25,341
where the legislature has taken

2134
01:19:27,324 --> 01:19:27,574
a whole slate of building code

2135
01:19:29,124 --> 01:19:29,374
reforms passed it straight

2136
01:19:30,858 --> 01:19:31,108
through and then left code

2137
01:19:32,891 --> 01:19:33,141
officials fire marshals and

2138
01:19:34,858 --> 01:19:35,108
other people with the loose ends

2139
01:19:36,691 --> 01:19:36,941
to try to tie up what that

2140
01:19:37,258 --> 01:19:37,508
actual statute means

2141
01:19:39,158 --> 01:19:39,408
and we don't have to look too

2142
01:19:40,624 --> 01:19:40,874
far south to our neighbor in

2143
01:19:42,391 --> 01:19:42,641
Texas and Dallas to kind of see

2144
01:19:44,624 --> 01:19:44,874
what impact that has on housing

2145
01:19:45,391 --> 01:19:45,641
production and so what I think

2146
01:19:47,191 --> 01:19:47,441
we have in Oklahoma is a really

2147
01:19:48,891 --> 01:19:49,141
good model for making sure that

2148
01:19:50,658 --> 01:19:50,908
people are at the table making

2149
01:19:52,658 --> 01:19:52,908
sure that we are taking modest

2150
01:19:53,291 --> 01:19:53,541
steps forward that unlock

2151
01:19:55,158 --> 01:19:55,408
housing typologies while also

2152
01:19:56,891 --> 01:19:57,141
keeping people safe and making

2153
01:19:57,558 --> 01:19:57,808
sure that everybody's on the

2154
01:19:58,658 --> 01:19:58,908
same page on how to actually

2155
01:20:00,658 --> 01:20:00,908
implement those reforms. so

2156
01:20:02,424 --> 01:20:02,674
I'll talk about a couple of them

2157
01:20:03,124 --> 01:20:03,374
that came up in theffordable

2158
01:20:04,391 --> 01:20:04,641
housing and consolidated

2159
01:20:05,491 --> 01:20:05,741
dwelling technical codeviewittee

2160
01:20:06,124 --> 01:20:06,374
the

2161
01:20:11,091 --> 01:20:11,341
d c T c c da named it not me

2162
01:20:14,624 --> 01:20:14,874
but but one of them was

2163
01:20:16,624 --> 01:20:16,874
single stair reform there was

2164
01:20:18,658 --> 01:20:18,908
a bill at the legislature last

2165
01:20:20,424 --> 01:20:20,674
year carried by Senator

2166
01:20:20,891 --> 01:20:21,141
Schreiber or I'm

2167
01:20:22,658 --> 01:20:22,908
sorrypresentative Schreiber

2168
01:20:24,658 --> 01:20:24,908
that kind of led us down this

2169
01:20:26,391 --> 01:20:26,641
track and and we were able to

2170
01:20:28,624 --> 01:20:28,874
take that and work it through

2171
01:20:30,658 --> 01:20:30,908
this process in a way that we're

2172
01:20:31,391 --> 01:20:31,641
we were able to come out with a

2173
01:20:34,624 --> 01:20:34,874
pretty well adjusted version

2174
01:20:35,391 --> 01:20:35,641
that models after2024 code

2175
01:20:38,891 --> 01:20:39,141
o plexes under residential

2176
01:20:40,391 --> 01:20:40,641
code which I'll talk about more

2177
01:20:42,891 --> 01:20:43,141
here in a second and then

2178
01:20:45,091 --> 01:20:45,341
thinking about the the

2179
01:20:46,858 --> 01:20:47,108
opportunities of 13D fire

2180
01:20:48,658 --> 01:20:48,908
suppression systems in medium

2181
01:20:50,658 --> 01:20:50,908
sized buildings so in single

2182
01:20:52,658 --> 01:20:52,908
stier form I won't spend too

2183
01:20:53,224 --> 01:20:53,474
long here because it's an

2184
01:20:56,391 --> 01:20:56,641
incredibly technical document

2185
01:20:57,124 --> 01:20:57,374
but it it really is modeled

2186
01:20:57,691 --> 01:20:57,941
after a

2187
01:21:00,624 --> 01:21:00,874
reform proposed at the national

2188
01:21:03,124 --> 01:21:03,374
level E2424 if anybody wants

2189
01:21:07,091 --> 01:21:07,341
to look it up that takes

2190
01:21:09,124 --> 01:21:09,374
an opportunity of a building

2191
01:21:10,658 --> 01:21:10,908
type that we used to build a lot

2192
01:21:12,424 --> 01:21:12,674
of in the state of Oklahoma and

2193
01:21:13,124 --> 01:21:13,374
across the country and kind of

2194
01:21:16,658 --> 01:21:16,908
relegalizes that into in field

2195
01:21:19,124 --> 01:21:19,374
development and then secondly

2196
01:21:21,324 --> 01:21:21,574
another code proposal change

2197
01:21:22,891 --> 01:21:23,141
which was the number4 code

2198
01:21:26,391 --> 01:21:26,641
proposal change allowed for 23

2199
01:21:27,191 --> 01:21:27,441
and4am 3 and four unit dwellings

2200
01:21:27,891 --> 01:21:28,141
to

2201
01:21:30,624 --> 01:21:30,874
be built under residential code.

2202
01:21:32,391 --> 01:21:32,641
So there's two primary building

2203
01:21:33,124 --> 01:21:33,374
codes in the state of Oklahoma

2204
01:21:34,658 --> 01:21:34,908
and David can tell you more

2205
01:21:36,624 --> 01:21:36,874
about them than I can but

2206
01:21:38,624 --> 01:21:38,874
commercial code adds a

2207
01:21:40,391 --> 01:21:40,641
significant number of

2208
01:21:42,391 --> 01:21:42,641
inspection requirements there's

2209
01:21:44,391 --> 01:21:44,641
additional requirements related

2210
01:21:45,124 --> 01:21:45,374
to construction and fire

2211
01:21:48,391 --> 01:21:48,641
suppression and I mean it

2212
01:21:50,391 --> 01:21:50,641
governs everything from now you

2213
01:21:51,391 --> 01:21:51,641
know5 unit buildings up to

2214
01:21:52,891 --> 01:21:53,141
airports and large commercial

2215
01:21:54,924 --> 01:21:55,174
buildings and so really what

2216
01:21:56,424 --> 01:21:56,674
this code is designed to do is

2217
01:21:57,224 --> 01:21:57,474
to say you know these small 3

2218
01:21:57,924 --> 01:21:58,174
and4 plex buildings

2219
01:22:00,658 --> 01:22:00,908
that you see kind of built into

2220
01:22:02,658 --> 01:22:02,908
neighborhoods especially in

2221
01:22:04,391 --> 01:22:04,641
urban areas we believe that we

2222
01:22:05,124 --> 01:22:05,374
can treat those in a similar way

2223
01:22:06,624 --> 01:22:06,874
that we treat a single family

2224
01:22:08,891 --> 01:22:09,141
dwelling with a lot of the same

2225
01:22:10,658 --> 01:22:10,908
building characteristics so

2226
01:22:12,424 --> 01:22:12,674
that's that's kind of what this

2227
01:22:13,091 --> 01:22:13,341
particular code change proposal

2228
01:22:13,724 --> 01:22:13,974
gets to

2229
01:22:16,391 --> 01:22:16,641
the other thing that I will

2230
01:22:17,124 --> 01:22:17,374
mention is that we're going to

2231
01:22:18,858 --> 01:22:19,108
talk about the road to housing

2232
01:22:19,558 --> 01:22:19,808
actct here in a second. but

2233
01:22:20,624 --> 01:22:20,874
there are elements of the road

2234
01:22:22,891 --> 01:22:23,141
to housing actct that also push

2235
01:22:24,891 --> 01:22:25,141
states and governing bodies

2236
01:22:26,624 --> 01:22:26,874
towards some of these very same

2237
01:22:28,391 --> 01:22:28,641
building code change proposals

2238
01:22:30,624 --> 01:22:30,874
so where this putsokklahoma

2239
01:22:31,191 --> 01:22:31,441
right now is that the fortunate

2240
01:22:34,391 --> 01:22:34,641
edge of being ahead of some

2241
01:22:35,158 --> 01:22:35,408
federal policy which we don't

2242
01:22:36,891 --> 01:22:37,141
always get to claim but that's

2243
01:22:39,124 --> 01:22:39,374
exciting so we we get to

2244
01:22:41,091 --> 01:22:41,341
kind of lead some of the the

2245
01:22:42,991 --> 01:22:43,241
work nationally on on this

2246
01:22:43,558 --> 01:22:43,808
particular

2247
01:22:44,158 --> 01:22:44,408
issue area

2248
01:22:46,891 --> 01:22:47,141
and I'll I'll let David

2249
01:22:48,858 --> 01:22:49,108
confirm this particular timeline

2250
01:22:51,158 --> 01:22:51,408
but it's helpful for me to

2251
01:22:52,858 --> 01:22:53,108
understand like yes building

2252
01:22:54,858 --> 01:22:55,108
code change is possible and and

2253
01:22:56,658 --> 01:22:56,908
even preferred through the

2254
01:22:58,624 --> 01:22:58,874
existing systems but it is not a

2255
01:23:00,391 --> 01:23:00,641
slow process and it is

2256
01:23:04,391 --> 01:23:04,641
methodical by by nature so we as

2257
01:23:05,124 --> 01:23:05,374
David mentioned recommended the

2258
01:23:07,358 --> 01:23:07,608
technical committee in May that

2259
01:23:10,391 --> 01:23:10,641
committee was convened in august

2260
01:23:12,891 --> 01:23:13,141
we spent the entire process of

2261
01:23:13,524 --> 01:23:13,774
that I'm sorry it was

2262
01:23:18,391 --> 01:23:18,641
august of25 and then the

2263
01:23:20,658 --> 01:23:20,908
technical committee finalized

2264
01:23:22,391 --> 01:23:22,641
their recommendations in May of

2265
01:23:23,124 --> 01:23:23,374
this year recommended to the

2266
01:23:24,858 --> 01:23:25,108
full commission in August of

2267
01:23:26,624 --> 01:23:26,874
this year they are now in a rule

2268
01:23:28,591 --> 01:23:28,841
drafting process the commission

2269
01:23:30,624 --> 01:23:30,874
will approve those final rules

2270
01:23:31,224 --> 01:23:31,474
before sending them to the

2271
01:23:32,858 --> 01:23:33,108
legislature for review in the

2272
01:23:34,358 --> 01:23:34,608
next session and then those

2273
01:23:36,391 --> 01:23:36,641
building codes go into effect

2274
01:23:38,391 --> 01:23:38,641
likely in fall of2027 if

2275
01:23:38,991 --> 01:23:39,241
everything moves forward on

2276
01:23:40,891 --> 01:23:41,141
schedule. so just so

2277
01:23:42,391 --> 01:23:42,641
everybody is aware of kind of

2278
01:23:43,091 --> 01:23:43,341
the timeline associated with

2279
01:23:43,724 --> 01:23:43,974
that

2280
01:23:45,191 --> 01:23:45,441
David anything else to add on on

2281
01:23:45,858 --> 01:23:46,108
building code?

2282
01:23:50,391 --> 01:23:50,641
no other than on that timeline

2283
01:23:53,091 --> 01:23:53,341
the commission may wish to

2284
01:23:54,858 --> 01:23:55,108
put them in with emergency so

2285
01:23:56,858 --> 01:23:57,108
they would actually affect the24

2286
01:23:58,658 --> 01:23:58,908
adoption as well and then the

2287
01:24:00,624 --> 01:24:00,874
twentyevens as you mentioned

2288
01:24:02,691 --> 01:24:02,941
the27 codes on the national

2289
01:24:04,858 --> 01:24:05,108
codes when they come out the

2290
01:24:07,091 --> 01:24:07,341
changes we did make do model

2291
01:24:09,124 --> 01:24:09,374
those and so they'll just become

2292
01:24:09,791 --> 01:24:10,041
part of that adoption as well.

2293
01:24:14,891 --> 01:24:15,141
that goes live when what did you

2294
01:24:15,558 --> 01:24:15,808
say

2295
01:24:16,724 --> 01:24:16,974
227 when that's adopted

2296
01:24:20,491 --> 01:24:20,741
sorry the updated

2297
01:24:22,891 --> 01:24:23,141
you repeat what you just said

2298
01:24:24,658 --> 01:24:24,908
sorry you gave a date

2299
01:24:28,391 --> 01:24:28,641
and it the27 codes are coming

2300
01:24:29,158 --> 01:24:29,408
out now so we're gonna start

2301
01:24:32,391 --> 01:24:32,641
reviewing those and what we just

2302
01:24:33,158 --> 01:24:33,408
adopted through the committee

2303
01:24:34,891 --> 01:24:35,141
that Tyler was just talking

2304
01:24:38,624 --> 01:24:38,874
about those are completed and go

2305
01:24:40,391 --> 01:24:40,641
into the rules making process

2306
01:24:41,124 --> 01:24:41,374
but we will probably put them in

2307
01:24:44,658 --> 01:24:44,908
as emergencies because we

2308
01:24:46,891 --> 01:24:47,141
want them to go ahead and be in

2309
01:24:48,658 --> 01:24:48,908
effect being that the

2310
01:24:50,624 --> 01:24:50,874
twenty7h's going to change those

2311
01:24:51,291 --> 01:24:51,541
anyway as well

2312
01:24:57,158 --> 01:24:57,408
fantastic changing directions

2313
01:25:00,391 --> 01:25:00,641
here a little bit is moving

2314
01:25:01,158 --> 01:25:01,408
to the21st century road to

2315
01:25:02,924 --> 01:25:03,174
housing actct so this was a bill

2316
01:25:05,158 --> 01:25:05,408
that was passed a bipartisan

2317
01:25:08,424 --> 01:25:08,674
bill passed by Congress and

2318
01:25:10,391 --> 01:25:10,641
enacted into law in July of this

2319
01:25:11,058 --> 01:25:11,308
year

2320
01:25:14,658 --> 01:25:14,908
it has59 provisions in the act

2321
01:25:16,658 --> 01:25:16,908
and fortunately for everyone in

2322
01:25:17,358 --> 01:25:17,608
this room I will not go through

2323
01:25:19,124 --> 01:25:19,374
all59 provisions of the w1st

2324
01:25:20,658 --> 01:25:20,908
century roadad to Housing Act

2325
01:25:22,658 --> 01:25:22,908
today but I would like to

2326
01:25:24,391 --> 01:25:24,641
highlight just a couple of

2327
01:25:25,358 --> 01:25:25,608
things generally speaking that

2328
01:25:27,124 --> 01:25:27,374
that the state of Oklahoma can

2329
01:25:28,891 --> 01:25:29,141
do to get ready to respond to

2330
01:25:30,624 --> 01:25:30,874
some of the opportunities

2331
01:25:31,224 --> 01:25:31,474
created by the road to Housing

2332
01:25:33,124 --> 01:25:33,374
Act I'd also like to draw

2333
01:25:34,624 --> 01:25:34,874
attention to the QR code on our

2334
01:25:36,624 --> 01:25:36,874
presentation on the Housing

2335
01:25:38,424 --> 01:25:38,674
forward website there is a road

2336
01:25:40,424 --> 01:25:40,674
to housing explorer that we have

2337
01:25:41,124 --> 01:25:41,374
that's available for people

2338
01:25:41,658 --> 01:25:41,908
where you can

2339
01:25:44,691 --> 01:25:44,941
search the act by specific

2340
01:25:46,658 --> 01:25:46,908
affinity like veterans housing

2341
01:25:50,424 --> 01:25:50,674
or rural housing or if you're a

2342
01:25:51,091 --> 01:25:51,341
particular policymaker or

2343
01:25:52,858 --> 01:25:53,108
decision maker for a particular

2344
01:25:54,658 --> 01:25:54,908
group like a legislator or a

2345
01:25:56,424 --> 01:25:56,674
tribal leader you can also sort

2346
01:25:58,424 --> 01:25:58,674
by action needed in some of

2347
01:25:59,024 --> 01:25:59,274
those various decision making

2348
01:25:59,691 --> 01:25:59,941
bodies

2349
01:26:04,624 --> 01:26:04,874
so just to start off I I think

2350
01:26:06,624 --> 01:26:06,874
one of the things that might be

2351
01:26:08,624 --> 01:26:08,874
a gap here in Oklahoma that I

2352
01:26:09,224 --> 01:26:09,474
think would help us respond to

2353
01:26:11,091 --> 01:26:11,341
this federal legislation is some

2354
01:26:13,124 --> 01:26:13,374
type of statewide housing plan

2355
01:26:14,858 --> 01:26:15,108
or a standing housing task force

2356
01:26:16,891 --> 01:26:17,141
that doesn't yet exist many of

2357
01:26:18,658 --> 01:26:18,908
the states that I believe will

2358
01:26:20,424 --> 01:26:20,674
be able to respond most

2359
01:26:21,158 --> 01:26:21,408
effectively to some of the pilot

2360
01:26:22,658 --> 01:26:22,908
programs created by the roadad

2361
01:26:24,891 --> 01:26:25,141
to Housing Act have already

2362
01:26:26,658 --> 01:26:26,908
created statewide housing plans

2363
01:26:27,391 --> 01:26:27,641
and those are already in place

2364
01:26:28,891 --> 01:26:29,141
and then they have some type of

2365
01:26:29,558 --> 01:26:29,808
convened body

2366
01:26:33,124 --> 01:26:33,374
that can then create strategy on

2367
01:26:34,958 --> 01:26:35,208
behalf of the state to pursue

2368
01:26:36,624 --> 01:26:36,874
some of these pilot programs and

2369
01:26:37,358 --> 01:26:37,608
kind of get all the programs

2370
01:26:39,124 --> 01:26:39,374
lined up in a way that they can

2371
01:26:41,091 --> 01:26:41,341
take advantage of this new these

2372
01:26:44,391 --> 01:26:44,641
new program opportunities so

2373
01:26:45,358 --> 01:26:45,608
really that that could be an ask

2374
01:26:46,891 --> 01:26:47,141
of the legislature it could be

2375
01:26:48,891 --> 01:26:49,141
an ask of incoming governor's

2376
01:26:51,158 --> 01:26:51,408
office but some type of

2377
01:26:53,124 --> 01:26:53,374
coordinated effort to respond to

2378
01:26:55,158 --> 01:26:55,408
the new programs created in this

2379
01:26:57,124 --> 01:26:57,374
piece of legislation could be

2380
01:26:58,391 --> 01:26:58,641
really helpful for the state of

2381
01:26:59,124 --> 01:26:59,374
Oklahoma particularly many of

2382
01:26:59,758 --> 01:27:00,008
the

2383
01:27:02,624 --> 01:27:02,874
areas where there's rural

2384
01:27:03,258 --> 01:27:03,508
communities that might not be

2385
01:27:04,391 --> 01:27:04,641
able to take advantage of some

2386
01:27:05,124 --> 01:27:05,374
of the acts because of their

2387
01:27:06,924 --> 01:27:07,174
lack of existing or or permanent

2388
01:27:07,591 --> 01:27:07,841
staff

2389
01:27:11,124 --> 01:27:11,374
one of the particular areas

2390
01:27:12,891 --> 01:27:13,141
one of the grant programs that

2391
01:27:14,924 --> 01:27:15,174
this particular act stands up is

2392
01:27:17,091 --> 01:27:17,341
for preapproved housing plans

2393
01:27:18,891 --> 01:27:19,141
so I'll just mention briefly

2394
01:27:19,524 --> 01:27:19,774
that there are plenty of

2395
01:27:20,658 --> 01:27:20,908
municipalities in the state of

2396
01:27:22,391 --> 01:27:22,641
Oklahoma that already have

2397
01:27:23,024 --> 01:27:23,274
rolled out preapproved housing

2398
01:27:24,924 --> 01:27:25,174
plans the most recent one is

2399
01:27:26,658 --> 01:27:26,908
the city of Tulsa in the Tetown

2400
01:27:28,891 --> 01:27:29,141
home catalog but preceding that

2401
01:27:30,891 --> 01:27:31,141
were the city of Guthrie

2402
01:27:32,658 --> 01:27:32,908
Danassik's in the room so need

2403
01:27:33,291 --> 01:27:33,541
to give him a shout out on

2404
01:27:34,924 --> 01:27:35,174
creating his own preapproved

2405
01:27:36,924 --> 01:27:37,174
housing plan for the city of

2406
01:27:37,524 --> 01:27:37,774
Guthrie city of Claremore

2407
01:27:40,391 --> 01:27:40,641
also rolled out a preapproved

2408
01:27:40,991 --> 01:27:41,241
housing plan there may be others

2409
01:27:42,891 --> 01:27:43,141
that I don't know of but I feel

2410
01:27:44,624 --> 01:27:44,874
like this is seeing gradual

2411
01:27:45,224 --> 01:27:45,474
adoption across the state

2412
01:27:48,658 --> 01:27:48,908
the federal grants associated

2413
01:27:50,891 --> 01:27:51,141
with the road to housing actct

2414
01:27:54,924 --> 01:27:55,174
provide opportunities to create

2415
01:27:56,891 --> 01:27:57,141
plans set libraries so that

2416
01:27:57,524 --> 01:27:57,774
smaller municipalities can take

2417
01:27:58,191 --> 01:27:58,441
advantage of that

2418
01:28:01,091 --> 01:28:01,341
and so just to back up briefly a

2419
01:28:03,091 --> 01:28:03,341
preapproved housing plan can

2420
01:28:04,858 --> 01:28:05,108
often save on housing

2421
01:28:06,358 --> 01:28:06,608
construction to the tune of5

2422
01:28:08,358 --> 01:28:08,608
to10,000 dollars because you're

2423
01:28:09,091 --> 01:28:09,341
not going out and having an

2424
01:28:10,658 --> 01:28:10,908
architect design a plan set for

2425
01:28:12,391 --> 01:28:12,641
you you can take that off the

2426
01:28:13,124 --> 01:28:13,374
shelf with the municipality

2427
01:28:14,658 --> 01:28:14,908
there's a lot more

2428
01:28:16,391 --> 01:28:16,641
predictability when it comes to

2429
01:28:18,391 --> 01:28:18,641
to housing delivery because

2430
01:28:18,991 --> 01:28:19,241
that's a plan set that's already

2431
01:28:20,624 --> 01:28:20,874
been vetted by the local

2432
01:28:21,358 --> 01:28:21,608
municipality they know that it

2433
01:28:22,891 --> 01:28:23,141
fits within their zoning and

2434
01:28:24,924 --> 01:28:25,174
building code and so it it

2435
01:28:26,624 --> 01:28:26,874
delivers housing units of of

2436
01:28:27,391 --> 01:28:27,641
different housing typologies

2437
01:28:28,058 --> 01:28:28,308
much faster to our

2438
01:28:29,391 --> 01:28:29,641
communities.

2439
01:28:32,624 --> 01:28:32,874
and then the the last thing that

2440
01:28:33,324 --> 01:28:33,574
I'll mention before I turn it

2441
01:28:35,091 --> 01:28:35,341
over to some of our other

2442
01:28:36,591 --> 01:28:36,841
presenters

2443
01:28:37,158 --> 01:28:37,408
are

2444
01:28:40,658 --> 01:28:40,908
there is a new federal

2445
01:28:42,391 --> 01:28:42,641
regulation associated with the

2446
01:28:43,124 --> 01:28:43,374
road to housing actct that

2447
01:28:46,624 --> 01:28:46,874
requires block grant recipients

2448
01:28:48,391 --> 01:28:48,641
in the state to create and

2449
01:28:49,124 --> 01:28:49,374
publish searchable inventories

2450
01:28:50,858 --> 01:28:51,108
of undeveloped land that they

2451
01:28:54,424 --> 01:28:54,674
own which is great it is great

2452
01:28:56,424 --> 01:28:56,674
to know what is available to be

2453
01:28:58,391 --> 01:28:58,641
developed on especially if it's

2454
01:28:59,091 --> 01:28:59,341
applicable for housing and

2455
01:29:00,891 --> 01:29:01,141
housing development. there's an

2456
01:29:02,924 --> 01:29:03,174
opportunity here that instead of

2457
01:29:04,424 --> 01:29:04,674
all of these different block

2458
01:29:05,158 --> 01:29:05,408
grant recipients creating their

2459
01:29:07,458 --> 01:29:07,708
own databases and having those

2460
01:29:08,124 --> 01:29:08,374
kind of be disparate across

2461
01:29:12,658 --> 01:29:12,908
the state for a single statewide

2462
01:29:14,391 --> 01:29:14,641
inventory to happen so that

2463
01:29:15,024 --> 01:29:15,274
that's searchable at the state

2464
01:29:17,191 --> 01:29:17,441
level which I think is a much

2465
01:29:19,158 --> 01:29:19,408
more usable inventory it kind of

2466
01:29:21,158 --> 01:29:21,408
turns this federal regulation

2467
01:29:22,958 --> 01:29:23,208
into something that's actually a

2468
01:29:24,624 --> 01:29:24,874
tool that could be utilized at

2469
01:29:26,624 --> 01:29:26,874
the state level with just a

2470
01:29:28,624 --> 01:29:28,874
little bit of coordination so

2471
01:29:29,424 --> 01:29:29,674
that's another another kind of

2472
01:29:30,924 --> 01:29:31,174
unique element of this

2473
01:29:32,424 --> 01:29:32,674
particular act that I think

2474
01:29:33,191 --> 01:29:33,441
Oklahoma could take advantage of

2475
01:29:33,858 --> 01:29:34,108
pretty pretty quickly

2476
01:29:36,624 --> 01:29:36,874
so with that I'm gonna turn

2477
01:29:38,391 --> 01:29:38,641
it over to Darrell beavers

2478
01:29:39,024 --> 01:29:39,274
with the Oklahoma Housing

2479
01:29:39,558 --> 01:29:39,808
finance Agency.

2480
01:29:42,891 --> 01:29:43,141
good morning I'm the housing

2481
01:29:49,174 --> 01:29:49,424
' m the housing development

2482
01:29:54,391 --> 01:29:54,641
director at OHFA and I want

2483
01:29:56,391 --> 01:29:56,641
to mention what Tyler was

2484
01:29:56,991 --> 01:29:57,241
talking about about the

2485
01:29:58,858 --> 01:29:59,108
statewide housing plan you know

2486
01:30:00,624 --> 01:30:00,874
we have a statewide housing

2487
01:30:03,124 --> 01:30:03,374
needs assessment that resides

2488
01:30:05,124 --> 01:30:05,374
on our website we did this

2489
01:30:07,124 --> 01:30:07,374
with the help from the OU

2490
01:30:10,391 --> 01:30:10,641
College of architecture and it's

2491
01:30:12,424 --> 01:30:12,674
being it's being updated

2492
01:30:14,858 --> 01:30:15,108
right now but it's the first

2493
01:30:16,958 --> 01:30:17,208
step in trying to identify

2494
01:30:20,391 --> 01:30:20,641
how much housing is needed the

2495
01:30:22,658 --> 01:30:22,908
types and where the second

2496
01:30:24,391 --> 01:30:24,641
step is what Tyler was referring

2497
01:30:26,391 --> 01:30:26,641
to is we need to have a plan

2498
01:30:27,158 --> 01:30:27,408
then on how are we going how are

2499
01:30:29,124 --> 01:30:29,374
we going to solve these problems

2500
01:30:32,391 --> 01:30:32,641
so the twenty1st century

2501
01:30:33,124 --> 01:30:33,374
road tohousing actct and road

2502
01:30:34,891 --> 01:30:35,141
actually stands for something it

2503
01:30:36,624 --> 01:30:36,874
stands for renewing opportunity

2504
01:30:38,891 --> 01:30:39,141
in the American dream it

2505
01:30:41,124 --> 01:30:41,374
makes dozens of worthwhile

2506
01:30:42,658 --> 01:30:42,908
reforms to federal programs and

2507
01:30:44,658 --> 01:30:44,908
establishes a number of new

2508
01:30:46,658 --> 01:30:46,908
policies that will help lower

2509
01:30:47,291 --> 01:30:47,541
housing costs and increase

2510
01:30:47,858 --> 01:30:48,108
housing production

2511
01:30:52,391 --> 01:30:52,641
and opportunities the

2512
01:30:52,891 --> 01:30:53,141
Oklahoma housing finance

2513
01:30:56,391 --> 01:30:56,641
AgencyOFfa interacts with

2514
01:30:56,991 --> 01:30:57,241
most of the programs and

2515
01:30:58,858 --> 01:30:59,108
policies that are they're

2516
01:31:00,891 --> 01:31:01,141
initiated by this bill and so we

2517
01:31:02,624 --> 01:31:02,874
look forward to working with

2518
01:31:04,624 --> 01:31:04,874
federal agencies on the critical

2519
01:31:06,891 --> 01:31:07,141
next steps to turn a major

2520
01:31:08,624 --> 01:31:08,874
policy accomplishment in

2521
01:31:10,924 --> 01:31:11,174
Washington Dc into tangible

2522
01:31:11,491 --> 01:31:11,741
results in Oklahoma.

2523
01:31:14,891 --> 01:31:15,141
the act reforms and streamlines

2524
01:31:16,391 --> 01:31:16,641
numerous US Department of

2525
01:31:17,124 --> 01:31:17,374
Housing and Urban Development

2526
01:31:20,358 --> 01:31:20,608
and US Department of agriculture

2527
01:31:22,391 --> 01:31:22,641
affordable housing programs

2528
01:31:24,391 --> 01:31:24,641
and policies it also allows

2529
01:31:26,391 --> 01:31:26,641
banks to increase equity

2530
01:31:27,091 --> 01:31:27,341
investments in tax credit

2531
01:31:28,591 --> 01:31:28,841
developments and other public

2532
01:31:31,091 --> 01:31:31,341
priorities it authorizes new

2533
01:31:32,858 --> 01:31:33,108
pilot programs and expands and

2534
01:31:33,524 --> 01:31:33,774
updates others

2535
01:31:36,391 --> 01:31:36,641
provides incentives for state

2536
01:31:37,224 --> 01:31:37,474
and local zoning and land use

2537
01:31:37,891 --> 01:31:38,141
reforms

2538
01:31:42,391 --> 01:31:42,641
authorizes a HUDcdBgbased

2539
01:31:43,191 --> 01:31:43,441
disaster recovery program for

2540
01:31:43,858 --> 01:31:44,108
three years

2541
01:31:46,858 --> 01:31:47,108
and directs federal agencies to

2542
01:31:48,624 --> 01:31:48,874
undertake new research and

2543
01:31:50,658 --> 01:31:50,908
establish best practices in an

2544
01:31:52,891 --> 01:31:53,141
effort to expand the supply and

2545
01:31:53,524 --> 01:31:53,774
affordability of affordable

2546
01:31:54,058 --> 01:31:54,308
housing

2547
01:31:56,391 --> 01:31:56,641
so

2548
01:31:58,858 --> 01:31:59,108
going to the slides now

2549
01:32:02,391 --> 01:32:02,641
what OHFA supports before

2550
01:32:02,991 --> 01:32:03,241
discussing the roadad actct I

2551
01:32:04,891 --> 01:32:05,141
think it it's important to

2552
01:32:06,624 --> 01:32:06,874
understand OFfa's role in

2553
01:32:09,124 --> 01:32:09,374
housing production we support

2554
01:32:10,624 --> 01:32:10,874
housing through a number of

2555
01:32:12,391 --> 01:32:12,641
financing tools including the

2556
01:32:14,391 --> 01:32:14,641
home investment partnership

2557
01:32:16,424 --> 01:32:16,674
program the national Housing

2558
01:32:17,191 --> 01:32:17,441
Trust Fund the low income

2559
01:32:19,191 --> 01:32:19,441
housing tax credit bond

2560
01:32:21,158 --> 01:32:21,408
financing and several state

2561
01:32:22,858 --> 01:32:23,108
funded initiatives the

2562
01:32:24,458 --> 01:32:24,708
provisions we'll discuss today

2563
01:32:25,124 --> 01:32:25,374
are the portions of the act

2564
01:32:26,891 --> 01:32:27,141
that appear most relevant to

2565
01:32:28,891 --> 01:32:29,141
those programs that we already

2566
01:32:30,391 --> 01:32:30,641
administer collectively they

2567
01:32:32,391 --> 01:32:32,641
provide new tools to expand

2568
01:32:34,624 --> 01:32:34,874
housing production preserve

2569
01:32:36,391 --> 01:32:36,641
existing housing support home

2570
01:32:38,391 --> 01:32:38,641
ownership and improve the

2571
01:32:38,924 --> 01:32:39,174
administration of federal

2572
01:32:39,491 --> 01:32:39,741
housing programs

2573
01:32:41,324 --> 01:32:41,574
so

2574
01:32:42,724 --> 01:32:42,974
why

2575
01:32:48,391 --> 01:32:48,641
reduction matters why housing

2576
01:32:50,391 --> 01:32:50,641
production matters Oklahoma's

2577
01:32:51,091 --> 01:32:51,341
housing challenges ultimately a

2578
01:32:51,791 --> 01:32:52,041
housing supply challenge

2579
01:32:54,891 --> 01:32:55,141
communities across the state

2580
01:32:56,858 --> 01:32:57,108
need additional rental housing

2581
01:32:59,091 --> 01:32:59,341
workforce housing homeownership

2582
01:33:01,158 --> 01:33:01,408
opportunities senior housing and

2583
01:33:03,124 --> 01:33:03,374
housing in rural areas the

2584
01:33:04,891 --> 01:33:05,141
roadad actct seeks to address

2585
01:33:06,391 --> 01:33:06,641
some of those challenges by

2586
01:33:06,958 --> 01:33:07,208
reducing barriers to development

2587
01:33:10,391 --> 01:33:10,641
providing more flexibility

2588
01:33:12,391 --> 01:33:12,641
within existing programs and

2589
01:33:14,424 --> 01:33:14,674
authorizing several new funding

2590
01:33:15,158 --> 01:33:15,408
opportunities many of these

2591
01:33:17,124 --> 01:33:17,374
reforms focus on helping

2592
01:33:18,924 --> 01:33:19,174
existing housing programs work

2593
01:33:19,591 --> 01:33:19,841
more effectively

2594
01:33:28,424 --> 01:33:28,674
section501 has to do with

2595
01:33:28,991 --> 01:33:29,241
homeme reauthorization and

2596
01:33:29,558 --> 01:33:29,808
reform

2597
01:33:32,924 --> 01:33:33,174
the homeme reauthorization

2598
01:33:34,658 --> 01:33:34,908
and reform Act represents the

2599
01:33:36,424 --> 01:33:36,674
most significant update to the

2600
01:33:37,124 --> 01:33:37,374
home program in more than three

2601
01:33:37,758 --> 01:33:38,008
decades

2602
01:33:40,424 --> 01:33:40,674
the reforms are intended to make

2603
01:33:42,424 --> 01:33:42,674
the program more flexible reduce

2604
01:33:44,924 --> 01:33:45,174
administrative burdens expand

2605
01:33:46,891 --> 01:33:47,141
home ownership opportunities and

2606
01:33:47,591 --> 01:33:47,841
support additional housing

2607
01:33:48,124 --> 01:33:48,374
production

2608
01:33:51,058 --> 01:33:51,308
for Oklahoma some of the most

2609
01:33:52,891 --> 01:33:53,141
significant changes include

2610
01:33:53,491 --> 01:33:53,741
expanding homeownership

2611
01:33:56,891 --> 01:33:57,141
eligibility from 80% to100% of

2612
01:33:59,091 --> 01:33:59,341
area median income and

2613
01:34:01,124 --> 01:34:01,374
increasing allowable home value

2614
01:34:04,858 --> 01:34:05,108
limits from 95% to110% of

2615
01:34:05,358 --> 01:34:05,608
average area purchase price

2616
01:34:10,624 --> 01:34:10,874
the act also s allow state

2617
01:34:12,624 --> 01:34:12,874
administrators like OFfa to

2618
01:34:14,624 --> 01:34:14,874
utilize national inspection

2619
01:34:16,658 --> 01:34:16,908
standards and creates additional

2620
01:34:18,658 --> 01:34:18,908
infrastructure flexibility for

2621
01:34:20,424 --> 01:34:20,674
certain developments

2622
01:34:22,658 --> 01:34:22,908
collectively these changes may

2623
01:34:24,391 --> 01:34:24,641
improve program efficiency

2624
01:34:26,624 --> 01:34:26,874
increase partition participation

2625
01:34:28,924 --> 01:34:29,174
by developers and nonprofit

2626
01:34:30,624 --> 01:34:30,874
partners and create new

2627
01:34:32,624 --> 01:34:32,874
opportunities to address housing

2628
01:34:34,624 --> 01:34:34,874
needs across both rural and

2629
01:34:35,191 --> 01:34:35,441
urban Oklahoma

2630
01:34:42,391 --> 01:34:42,641
the housing counseling reform

2631
01:34:44,624 --> 01:34:44,874
portion of the act is that

2632
01:34:46,858 --> 01:34:47,108
section 10 1 the counseling

2633
01:34:48,624 --> 01:34:48,874
reforms are intended to improve

2634
01:34:50,624 --> 01:34:50,874
both equal and accountability of

2635
01:34:51,358 --> 01:34:51,608
HUD certified housing

2636
01:34:54,624 --> 01:34:54,874
counseling services the act

2637
01:34:56,391 --> 01:34:56,641
provides HUD with additional

2638
01:34:57,124 --> 01:34:57,374
oversight authority while also

2639
01:35:00,358 --> 01:35:00,608
expanding foreclosure mitigation

2640
01:35:02,391 --> 01:35:02,641
counseling opportunities for

2641
01:35:04,391 --> 01:35:04,641
certain FHA USDA and VA

2642
01:35:06,624 --> 01:35:06,874
borrowers for Oklahoma the

2643
01:35:08,458 --> 01:35:08,708
primary opportunity will be

2644
01:35:09,024 --> 01:35:09,274
improving counseling quality

2645
01:35:12,391 --> 01:35:12,641
while continuing to maintain

2646
01:35:12,991 --> 01:35:13,241
services

2647
01:35:16,391 --> 01:35:16,641
access to services this is

2648
01:35:16,991 --> 01:35:17,241
particularly important in rural

2649
01:35:18,858 --> 01:35:19,108
areas where counseling capacity

2650
01:35:19,558 --> 01:35:19,808
remains limited

2651
01:35:22,624 --> 01:35:22,874
as these reforms are implemented

2652
01:35:24,624 --> 01:35:24,874
there may be opportunities to

2653
01:35:25,391 --> 01:35:25,641
strengthen partnerships and

2654
01:35:26,891 --> 01:35:27,141
expand counselor capacity

2655
01:35:27,458 --> 01:35:27,708
statewide

2656
01:35:33,358 --> 01:35:33,608
emerging housing opportunities

2657
01:35:36,858 --> 01:35:37,108
the act also authorizes several

2658
01:35:38,891 --> 01:35:39,141
pilot programs that may create

2659
01:35:39,558 --> 01:35:39,808
future opportunities for

2660
01:35:40,091 --> 01:35:40,341
Oklahoma

2661
01:35:42,924 --> 01:35:43,174
while these programs are

2662
01:35:45,124 --> 01:35:45,374
authorized in statute most still

2663
01:35:46,624 --> 01:35:46,874
require congressional

2664
01:35:48,391 --> 01:35:48,641
appropriations before funding

2665
01:35:50,624 --> 01:35:50,874
becomes available the three that

2666
01:35:52,891 --> 01:35:53,141
appear most relevant from OHFA's

2667
01:35:56,624 --> 01:35:56,874
perspective are the reid program

2668
01:35:57,391 --> 01:35:57,641
the whole homeme repair pilot

2669
01:36:00,858 --> 01:36:01,108
and the affordable housing

2670
01:36:02,391 --> 01:36:02,641
planning and implementation

2671
01:36:03,391 --> 01:36:03,641
grant program and I'll touch

2672
01:36:04,458 --> 01:36:04,708
briefly briefly on those

2673
01:36:11,208 --> 01:36:11,458
the reid program is a

2674
01:36:14,624 --> 01:36:14,874
section210 reid stands for

2675
01:36:16,624 --> 01:36:16,874
revitalizing emmpty structures

2676
01:36:17,224 --> 01:36:17,474
into desirable environments

2677
01:36:20,624 --> 01:36:20,874
the reid program creates a

2678
01:36:22,391 --> 01:36:22,641
competitive funding opportunity

2679
01:36:23,024 --> 01:36:23,274
within home to support the

2680
01:36:24,591 --> 01:36:24,841
conversion of vacant and

2681
01:36:26,624 --> 01:36:26,874
underutilized buildings into

2682
01:36:28,391 --> 01:36:28,641
housing manyy Oklahoma

2683
01:36:28,891 --> 01:36:29,141
communities have buildings that

2684
01:36:30,924 --> 01:36:31,174
contribute to blight and sit

2685
01:36:32,658 --> 01:36:32,908
unused despite having

2686
01:36:35,191 --> 01:36:35,441
redevelopment potential examples

2687
01:36:37,158 --> 01:36:37,408
could include they can schools

2688
01:36:39,158 --> 01:36:39,408
former hospitals office

2689
01:36:40,891 --> 01:36:41,141
buildings commercial properties

2690
01:36:43,158 --> 01:36:43,408
or government facilities this

2691
01:36:44,924 --> 01:36:45,174
program seeks to address housing

2692
01:36:46,391 --> 01:36:46,641
shortages and community

2693
01:36:47,024 --> 01:36:47,274
revitalization at the same time.

2694
01:36:50,624 --> 01:36:50,874
it's important to note that

2695
01:36:52,491 --> 01:36:52,741
rezid does not currently provide

2696
01:36:53,158 --> 01:36:53,408
new funding to Oklahoma

2697
01:36:55,124 --> 01:36:55,374
but instead establishes a

2698
01:36:56,891 --> 01:36:57,141
competitive funding opportunity

2699
01:36:58,658 --> 01:36:58,908
that is still subject to future

2700
01:37:00,758 --> 01:37:01,008
appropriations andU

2701
01:37:01,191 --> 01:37:01,441
implementation

2702
01:37:06,391 --> 01:37:06,641
the whole home repair pilot

2703
01:37:10,391 --> 01:37:10,641
that is at section202

2704
01:37:11,158 --> 01:37:11,408
while much of the housing

2705
01:37:12,624 --> 01:37:12,874
conversation focuses on new

2706
01:37:13,191 --> 01:37:13,441
construction

2707
01:37:15,124 --> 01:37:15,374
preserving existing housing is

2708
01:37:18,658 --> 01:37:18,908
equally important. Many Oklahoma

2709
01:37:19,391 --> 01:37:19,641
communities particularly rural

2710
01:37:20,924 --> 01:37:21,174
communities face challenges

2711
01:37:22,491 --> 01:37:22,741
associated with aging housing

2712
01:37:23,124 --> 01:37:23,374
stock

2713
01:37:25,124 --> 01:37:25,374
the whole home repair pilot

2714
01:37:26,891 --> 01:37:27,141
would create a competitive

2715
01:37:28,391 --> 01:37:28,641
funding opportunity for

2716
01:37:30,624 --> 01:37:30,874
rehabilitation activities such

2717
01:37:32,424 --> 01:37:32,674
as accessibility improvements

2718
01:37:34,924 --> 01:37:35,174
weatherization health and safety

2719
01:37:36,991 --> 01:37:37,241
repairs and major building

2720
01:37:37,558 --> 01:37:37,808
system repairs

2721
01:37:41,124 --> 01:37:41,374
by preserving existing homes

2722
01:37:42,891 --> 01:37:43,141
communities may be able to

2723
01:37:44,424 --> 01:37:44,674
maintain the housing

2724
01:37:46,391 --> 01:37:46,641
affordability and stability at a

2725
01:37:47,091 --> 01:37:47,341
lower cost than developing new

2726
01:37:47,758 --> 01:37:48,008
housing

2727
01:37:50,658 --> 01:37:50,908
if funded this could become

2728
01:37:51,224 --> 01:37:51,474
another useful tool for

2729
01:37:54,391 --> 01:37:54,641
preserving naturally occurring

2730
01:37:55,058 --> 01:37:55,308
affordable housing across the

2731
01:37:55,724 --> 01:37:55,974
state

2732
01:37:59,124 --> 01:37:59,374
f fo rd able housing planning

2733
01:38:01,158 --> 01:38:01,408
and implementation grants can be

2734
01:38:02,724 --> 01:38:02,974
found in section207

2735
01:38:06,624 --> 01:38:06,874
manyy communities know they need

2736
01:38:08,391 --> 01:38:08,641
more housing but lack the

2737
01:38:10,424 --> 01:38:10,674
planning resources necessary to

2738
01:38:12,658 --> 01:38:12,908
identify needs prioritize

2739
01:38:14,658 --> 01:38:14,908
projects and prepare for future

2740
01:38:15,324 --> 01:38:15,574
development opportunities

2741
01:38:18,658 --> 01:38:18,908
this program focuses on planning

2742
01:38:19,391 --> 01:38:19,641
and development readiness rather

2743
01:38:20,458 --> 01:38:20,708
than housing construction

2744
01:38:23,191 --> 01:38:23,441
funds could be used for housing

2745
01:38:26,424 --> 01:38:26,674
needs assessments the one that

2746
01:38:27,158 --> 01:38:27,408
we have that I just mentioned

2747
01:38:30,391 --> 01:38:30,641
market studies workforce housing

2748
01:38:32,391 --> 01:38:32,641
planning and regional housing

2749
01:38:34,391 --> 01:38:34,641
strategies for many Oklahoma

2750
01:38:36,424 --> 01:38:36,674
communities particularly smaller

2751
01:38:38,658 --> 01:38:38,908
communities planning capacity is

2752
01:38:39,358 --> 01:38:39,608
often the first barrier to

2753
01:38:39,891 --> 01:38:40,141
housing development

2754
01:38:42,858 --> 01:38:43,108
while this program would not

2755
01:38:44,658 --> 01:38:44,908
directly build housing it could

2756
01:38:46,624 --> 01:38:46,874
help communities better position

2757
01:38:48,624 --> 01:38:48,874
themselves for future housing

2758
01:38:49,291 --> 01:38:49,541
investments and development

2759
01:38:49,824 --> 01:38:50,074
opportunities.

2760
01:38:54,891 --> 01:38:55,141
increasing housing in

2761
01:38:56,891 --> 01:38:57,141
opportunity zones the road act

2762
01:38:58,858 --> 01:38:59,108
allows HUd to provide additional

2763
01:39:00,524 --> 01:39:00,774
scoring preference for certain

2764
01:39:01,158 --> 01:39:01,408
competitive housing grants

2765
01:39:03,291 --> 01:39:03,541
located in or servingun zones

2766
01:39:06,891 --> 01:39:07,141
Oklahoma currently has

2767
01:39:10,358 --> 01:39:10,608
approximately 117 opportunity

2768
01:39:12,391 --> 01:39:12,641
zones located across both urban

2769
01:39:14,624 --> 01:39:14,874
and rural communities many of

2770
01:39:16,391 --> 01:39:16,641
these areas overlap with

2771
01:39:18,391 --> 01:39:18,641
communities experiencing housing

2772
01:39:20,624 --> 01:39:20,874
shortages shortages development

2773
01:39:22,624 --> 01:39:22,874
needs and infrastructure

2774
01:39:24,391 --> 01:39:24,641
challenges it's important to

2775
01:39:25,091 --> 01:39:25,341
note that opportun zones do not

2776
01:39:28,624 --> 01:39:28,874
create a new funding source but

2777
01:39:30,391 --> 01:39:30,641
they may improve Oklahoma's

2778
01:39:31,124 --> 01:39:31,374
competitiveness for future

2779
01:39:31,724 --> 01:39:31,974
federal housing grants

2780
01:39:35,124 --> 01:39:35,374
as these opportunities develop

2781
01:39:36,891 --> 01:39:37,141
OhFA may be able to

2782
01:39:39,091 --> 01:39:39,341
strategically align housing

2783
01:39:40,624 --> 01:39:40,874
investments and development

2784
01:39:42,658 --> 01:39:42,908
activity withinportunity zone

2785
01:39:44,858 --> 01:39:45,108
communities to maximize access

2786
01:39:45,558 --> 01:39:45,808
to future federal resources

2787
01:39:50,658 --> 01:39:50,908
and now we get to the

2788
01:39:54,391 --> 01:39:54,641
implementation hurdles while

2789
01:39:55,124 --> 01:39:55,374
the roadde act creates several

2790
01:39:56,858 --> 01:39:57,108
promising opportunities many of

2791
01:39:58,824 --> 01:39:59,074
its provisions are not yet

2792
01:40:00,624 --> 01:40:00,874
operational a number of the

2793
01:40:02,624 --> 01:40:02,874
reforms require HUD rulemaking

2794
01:40:04,624 --> 01:40:04,874
and implementation guidance

2795
01:40:06,391 --> 01:40:06,641
before states can begin

2796
01:40:07,191 --> 01:40:07,441
utilizing new program

2797
01:40:07,624 --> 01:40:07,874
flexibilities

2798
01:40:10,891 --> 01:40:11,141
in addition several of the pilot

2799
01:40:12,658 --> 01:40:12,908
programs discussed today are

2800
01:40:14,391 --> 01:40:14,641
authorized but not currently

2801
01:40:16,391 --> 01:40:16,641
funded and require future

2802
01:40:18,391 --> 01:40:18,641
congressional appropriations

2803
01:40:18,958 --> 01:40:19,208
before grants can be awarded

2804
01:40:23,091 --> 01:40:23,341
for O OhA our focus will be on

2805
01:40:24,624 --> 01:40:24,874
monitoring federal

2806
01:40:26,591 --> 01:40:26,841
implementation evaluating

2807
01:40:28,891 --> 01:40:29,141
opportunities for Oklahoma and

2808
01:40:30,424 --> 01:40:30,674
preparing to take advantage of

2809
01:40:31,124 --> 01:40:31,374
these new tools as they become

2810
01:40:31,791 --> 01:40:32,041
available

2811
01:40:34,858 --> 01:40:35,108
ultimately many of the benefits

2812
01:40:36,624 --> 01:40:36,874
of the act will depend on future

2813
01:40:38,724 --> 01:40:38,974
HUD action and congressional

2814
01:40:39,358 --> 01:40:39,608
funding decisions

2815
01:40:43,158 --> 01:40:43,408
and that's the end of my

2816
01:40:43,724 --> 01:40:43,974
presentation

2817
01:40:48,891 --> 01:40:49,141
he

2818
01:40:53,091 --> 01:40:53,341
thank you very much for inviting

2819
01:40:57,124 --> 01:40:57,374
me to present regarding the

2820
01:40:58,924 --> 01:40:59,174
roadad actct. My name's Deana

2821
01:41:00,658 --> 01:41:00,908
Fields and I'm the executive

2822
01:41:02,458 --> 01:41:02,708
director of the manufactured

2823
01:41:04,624 --> 01:41:04,874
housing association of Oklahoma

2824
01:41:08,391 --> 01:41:08,641
since 1994 so I have seen a

2825
01:41:10,424 --> 01:41:10,674
tremendous change with this

2826
01:41:12,924 --> 01:41:13,174
industry since 94 I mean it's

2827
01:41:15,158 --> 01:41:15,408
amazing manufactured housing is

2828
01:41:16,924 --> 01:41:17,174
the only type of housing

2829
01:41:18,958 --> 01:41:19,208
constructed to a federal

2830
01:41:19,491 --> 01:41:19,741
residential building

2831
01:41:22,658 --> 01:41:22,908
code which is regulated by HUD.

2832
01:41:24,891 --> 01:41:25,141
so unfortunately we're not under

2833
01:41:25,558 --> 01:41:25,808
the uniform building code

2834
01:41:30,891 --> 01:41:31,141
according to a 2020 head report

2835
01:41:32,624 --> 01:41:32,874
factorybuild housing has

2836
01:41:34,858 --> 01:41:35,108
undergone many physical changes

2837
01:41:36,424 --> 01:41:36,674
that have made it more similar

2838
01:41:37,124 --> 01:41:37,374
to and in many ways

2839
01:41:39,124 --> 01:41:39,374
indistinguishable from

2840
01:41:40,891 --> 01:41:41,141
conventional site build

2841
01:41:43,124 --> 01:41:43,374
housinguality improvements in

2842
01:41:44,891 --> 01:41:45,141
construction and installation

2843
01:41:46,891 --> 01:41:47,141
practices have increased the

2844
01:41:48,658 --> 01:41:48,908
durability so that the life

2845
01:41:50,424 --> 01:41:50,674
expectancy of the manufactured

2846
01:41:52,424 --> 01:41:52,674
home or a factory built housing

2847
01:41:54,891 --> 01:41:55,141
is comparable to sitebuilt or on

2848
01:41:55,591 --> 01:41:55,841
site housing

2849
01:42:00,391 --> 01:42:00,641
so how does the21st century

2850
01:42:02,424 --> 01:42:02,674
roadad Act housing actct affects

2851
01:42:03,091 --> 01:42:03,341
the manufactured housing

2852
01:42:03,624 --> 01:42:03,874
industry.

2853
01:42:08,491 --> 01:42:08,741
Basically

2854
01:42:12,624 --> 01:42:12,874
it's expanding what can be built

2855
01:42:13,291 --> 01:42:13,541
under the HUD code.

2856
01:42:17,124 --> 01:42:17,374
this is the first time since the

2857
01:42:20,658 --> 01:42:20,908
enacted of HU which is now

2858
01:42:22,391 --> 01:42:22,641
they're celebrating their 50th

2859
01:42:24,891 --> 01:42:25,141
year anniversary is to allow the

2860
01:42:26,891 --> 01:42:27,141
manufactured home to be built

2861
01:42:28,991 --> 01:42:29,241
with or without a permanent

2862
01:42:29,558 --> 01:42:29,808
chassis

2863
01:42:33,091 --> 01:42:33,341
that's tremendous to us the

2864
01:42:36,391 --> 01:42:36,641
reason we're doing that is to

2865
01:42:38,391 --> 01:42:38,641
allow the innovation of our

2866
01:42:39,124 --> 01:42:39,374
architectural to our our

2867
01:42:40,891 --> 01:42:41,141
factories to allow twos story

2868
01:42:44,391 --> 01:42:44,641
modules on infill lots so it'll

2869
01:42:46,391 --> 01:42:46,641
be architecturally compatible

2870
01:42:46,991 --> 01:42:47,241
with the existing housing

2871
01:42:51,124 --> 01:42:51,374
zoning and land use progress

2872
01:42:53,158 --> 01:42:53,408
offers tools to address local

2873
01:42:55,124 --> 01:42:55,374
barriers that restrict the

2874
01:42:57,391 --> 01:42:57,641
placement of manufactured homes

2875
01:43:01,124 --> 01:43:01,374
that's a big obstacle for us and

2876
01:43:02,891 --> 01:43:03,141
we'll get through it later.

2877
01:43:05,124 --> 01:43:05,374
preserving regulatory efficiency

2878
01:43:08,358 --> 01:43:08,608
clarifies HU's authority over a

2879
01:43:09,358 --> 01:43:09,608
manufactured home construction

2880
01:43:12,891 --> 01:43:13,141
safety and energy standards

2881
01:43:14,891 --> 01:43:15,141
keeping the process efficient

2882
01:43:16,791 --> 01:43:17,041
and avoiding conflicted

2883
01:43:17,358 --> 01:43:17,608
standards

2884
01:43:21,124 --> 01:43:21,374
expanding or expanding financing

2885
01:43:23,091 --> 01:43:23,341
opportunities which advances

2886
01:43:26,358 --> 01:43:26,608
improvements to FHAitle one for

2887
01:43:28,591 --> 01:43:28,841
homeme only financing somebody

2888
01:43:29,391 --> 01:43:29,641
owns their land they do not want

2889
01:43:31,158 --> 01:43:31,408
to do you know land in lieu they

2890
01:43:33,158 --> 01:43:33,408
just want to you know the home

2891
01:43:34,458 --> 01:43:34,708
by itself this would help

2892
01:43:39,091 --> 01:43:39,341
U D is also mandating that all

2893
01:43:42,858 --> 01:43:43,108
states define the definitions of

2894
01:43:44,924 --> 01:43:45,174
a manufactured home with the

2895
01:43:45,524 --> 01:43:45,774
federal definition

2896
01:43:50,391 --> 01:43:50,641
Oklahoma is a step ahead of this

2897
01:43:51,124 --> 01:43:51,374
curve since we changed our

2898
01:43:53,058 --> 01:43:53,308
definition definitions over 10

2899
01:43:56,391 --> 01:43:56,641
years ago under

2900
01:43:58,358 --> 01:43:58,608
Title47section581 the used motor

2901
01:44:00,391 --> 01:44:00,641
vehicles dismant or manufactured

2902
01:44:01,058 --> 01:44:01,308
housing commission this

2903
01:44:02,891 --> 01:44:03,141
commission licenses our

2904
01:44:04,624 --> 01:44:04,874
manufacturers our retailers, our

2905
01:44:06,858 --> 01:44:07,108
salespeople, our installers to

2906
01:44:10,624 --> 01:44:10,874
prohibit the conflict or this is

2907
01:44:11,324 --> 01:44:11,574
their fault this is their fault

2908
01:44:13,124 --> 01:44:13,374
you know and we have a dispute

2909
01:44:15,191 --> 01:44:15,441
resolution program within this

2910
01:44:15,824 --> 01:44:16,074
commission that comp

2911
01:44:18,624 --> 01:44:18,874
li es with HUDlus we have our

2912
01:44:20,858 --> 01:44:21,108
installation program that is a

2913
01:44:22,858 --> 01:44:23,108
certified through HUD in this

2914
01:44:23,558 --> 01:44:23,808
commission

2915
01:44:26,858 --> 01:44:27,108
manufacturing and this is the

2916
01:44:29,158 --> 01:44:29,408
definition that we put in our

2917
01:44:34,391 --> 01:44:34,641
title47 Baically it mirrors

2918
01:44:36,624 --> 01:44:36,874
the site and the rules

2919
01:44:38,858 --> 01:44:39,108
promulgated thereof of of the

2920
01:44:40,358 --> 01:44:40,608
federal construction

2921
01:44:40,991 --> 01:44:41,241
safetyanders actct

2922
01:44:44,391 --> 01:44:44,641
basically that's what it says

2923
01:44:47,124 --> 01:44:47,374
any home built after 1974 is

2924
01:44:47,724 --> 01:44:47,974
considered a manufactured home

2925
01:44:52,391 --> 01:44:52,641
a mobile home which we also put

2926
01:44:54,858 --> 01:44:55,108
in state definition and it's

2927
01:44:56,858 --> 01:44:57,108
also in the federal mobile home

2928
01:44:58,424 --> 01:44:58,674
means a residential dwelling

2929
01:45:00,391 --> 01:45:00,641
fabricated in or off site

2930
01:45:02,658 --> 01:45:02,908
manufacturing facility designed

2931
01:45:04,658 --> 01:45:04,908
to be a permanent residence

2932
01:45:06,624 --> 01:45:06,874
which is still transportable

2933
01:45:08,891 --> 01:45:09,141
that was built prior to enacting

2934
01:45:09,591 --> 01:45:09,841
of the national manufactured

2935
01:45:12,424 --> 01:45:12,674
housing Construction Act those

2936
01:45:13,024 --> 01:45:13,274
are your typical what you think

2937
01:45:13,658 --> 01:45:13,908
of your mobile homes and your

2938
01:45:14,291 --> 01:45:14,541
trailers

2939
01:45:18,924 --> 01:45:19,174
However, we do have titles in

2940
01:45:21,258 --> 01:45:21,508
state law that have outdated

2941
01:45:21,924 --> 01:45:22,174
definitions

2942
01:45:25,391 --> 01:45:25,641
what I'm here today is to

2943
01:45:25,958 --> 01:45:26,208
encourage

2944
01:45:30,391 --> 01:45:30,641
a movement that we need to

2945
01:45:32,891 --> 01:45:33,141
simply by just adding defining a

2946
01:45:34,624 --> 01:45:34,874
manufactured homeb like we did

2947
01:45:38,658 --> 01:45:38,908
in Title47, Title21, Title27 a

2948
01:45:42,624 --> 01:45:42,874
anditle68 which is your tax

2949
01:45:43,158 --> 01:45:43,408
commission

2950
01:45:48,891 --> 01:45:49,141
what we need

2951
01:45:51,124 --> 01:45:51,374
we extremely need and we're

2952
01:45:52,891 --> 01:45:53,141
going to be looking forward to

2953
01:45:56,624 --> 01:45:56,874
this is a definition entitle

2954
01:46:00,858 --> 01:46:01,108
11 cities and townwns

2955
01:46:02,624 --> 01:46:02,874
several years ago the cities and

2956
01:46:06,624 --> 01:46:06,874
towns enacted a law that on the

2957
01:46:08,658 --> 01:46:08,908
aesthetics of a sitebu home

2958
01:46:10,391 --> 01:46:10,641
cities and towns do not have

2959
01:46:12,424 --> 01:46:12,674
that authority to do that. They

2960
01:46:14,658 --> 01:46:14,908
also included manufactured homes

2961
01:46:15,291 --> 01:46:15,541
however there is no

2962
01:46:20,391 --> 01:46:20,641
definitions initle 11 of what we

2963
01:46:22,391 --> 01:46:22,641
are so you have a lot of cities

2964
01:46:23,124 --> 01:46:23,374
and towns that are totally

2965
01:46:25,358 --> 01:46:25,608
confused about manufactured

2966
01:46:26,891 --> 01:46:27,141
homes thinking that anything's

2967
01:46:28,624 --> 01:46:28,874
built in a factory offsite is a

2968
01:46:30,391 --> 01:46:30,641
manufactured home that is not

2969
01:46:32,858 --> 01:46:33,108
the case. We also have modulars

2970
01:46:35,091 --> 01:46:35,341
that are built to the uniform

2971
01:46:36,858 --> 01:46:37,108
building code. a lot of my

2972
01:46:37,458 --> 01:46:37,708
factories that build and

2973
01:46:39,158 --> 01:46:39,408
manufactured home also built of

2974
01:46:42,391 --> 01:46:42,641
modulars and they have to and

2975
01:46:44,391 --> 01:46:44,641
they will have to comply with

2976
01:46:45,058 --> 01:46:45,308
the new code which is what2024

2977
01:46:48,391 --> 01:46:48,641
right the engineers' are

2978
01:46:48,991 --> 01:46:49,241
already looking at it and said

2979
01:46:50,858 --> 01:46:51,108
he we already do that so and in

2980
01:46:52,891 --> 01:46:53,141
essence a lot of our homes are

2981
01:46:53,558 --> 01:46:53,808
even built

2982
01:47:00,391 --> 01:47:00,641
either near or higher to what

2983
01:47:01,058 --> 01:47:01,308
our state building code is

2984
01:47:02,891 --> 01:47:03,141
so

2985
01:47:06,858 --> 01:47:07,108
anyway that's what the change

2986
01:47:09,124 --> 01:47:09,374
the landscape of affordable

2987
01:47:10,858 --> 01:47:11,108
and attainable housing in

2988
01:47:13,158 --> 01:47:13,408
Oklahoma a lot of people don't

2989
01:47:16,391 --> 01:47:16,641
realize that manufactured homes

2990
01:47:17,124 --> 01:47:17,374
can be constructed more quickly

2991
01:47:20,624 --> 01:47:20,874
than sidebuild homes at just 35

2992
01:47:24,658 --> 01:47:24,908
to75% of the cost that's why you

2993
01:47:26,891 --> 01:47:27,141
see a lot of people buying our

2994
01:47:30,891 --> 01:47:31,141
industry. our factories buy

2995
01:47:31,458 --> 01:47:31,708
bundles

2996
01:47:35,124 --> 01:47:35,374
of of products they the only

2997
01:47:38,358 --> 01:47:38,608
thing they ran out of during the

2998
01:47:40,624 --> 01:47:40,874
COVID era was the refrigerators

2999
01:47:42,624 --> 01:47:42,874
and refrigerators did I say that

3000
01:47:45,424 --> 01:47:45,674
refrigerators and microwaves

3001
01:47:45,991 --> 01:47:46,241
and stoves

3002
01:47:49,091 --> 01:47:49,341
they had to go to lowewe's

3003
01:47:50,824 --> 01:47:51,074
naturally instead of the big

3004
01:47:53,324 --> 01:47:53,574
warehouses but we overcame that

3005
01:47:56,391 --> 01:47:56,641
our we have actually40 factories

3006
01:47:58,658 --> 01:47:58,908
that ship homes into Oklahoma

3007
01:48:00,858 --> 01:48:01,108
from all over the country.

3008
01:48:02,858 --> 01:48:03,108
they have to meet the federal

3009
01:48:05,091 --> 01:48:05,341
building codes for our area like

3010
01:48:07,124 --> 01:48:07,374
in Oklahoma we are a thermal

3011
01:48:10,391 --> 01:48:10,641
zone2 for energy standard where

3012
01:48:14,358 --> 01:48:14,608
Texas is a zone one. we have of

3013
01:48:16,691 --> 01:48:16,941
course the wind standards the

3014
01:48:17,324 --> 01:48:17,574
roost standards and

3015
01:48:19,058 --> 01:48:19,308
it's pretty tough if anybody

3016
01:48:21,058 --> 01:48:21,308
ever wants to get into the dive

3017
01:48:23,058 --> 01:48:23,308
of what our coves codes are I'd

3018
01:48:25,124 --> 01:48:25,374
be more than happy to share. We

3019
01:48:26,858 --> 01:48:27,108
also have two plants in

3020
01:48:28,991 --> 01:48:29,241
Oklahoma. We have a plant in

3021
01:48:29,524 --> 01:48:29,774
medill

3022
01:48:33,124 --> 01:48:33,374
new vision and we have a plant

3023
01:48:35,358 --> 01:48:35,608
and Duran Duncan which is was

3024
01:48:36,891 --> 01:48:37,141
a solitaire but now it's owned

3025
01:48:37,558 --> 01:48:37,808
byavco.

3026
01:48:42,391 --> 01:48:42,641
I have three major big factories

3027
01:48:44,624 --> 01:48:44,874
that were very instrumental in

3028
01:48:46,858 --> 01:48:47,108
this homeme act regarding the

3029
01:48:48,891 --> 01:48:49,141
manufactured housing provisions

3030
01:48:50,391 --> 01:48:50,641
that's your avcos your champions

3031
01:48:52,658 --> 01:48:52,908
and your laytons. they're also

3032
01:48:54,891 --> 01:48:55,141
right now showing homes or

3033
01:48:56,891 --> 01:48:57,141
showcased at our houses on the

3034
01:49:00,658 --> 01:49:00,908
Washington mall for the birthday

3035
01:49:03,158 --> 01:49:03,408
of or the anniversary of HUD So

3036
01:49:06,924 --> 01:49:07,174
Secretary Turner's totally

3037
01:49:07,491 --> 01:49:07,741
excited and about our industry

3038
01:49:08,158 --> 01:49:08,408
because

3039
01:49:10,924 --> 01:49:11,174
he's seen and he's walked

3040
01:49:12,924 --> 01:49:13,174
through our homes and he's seen

3041
01:49:16,624 --> 01:49:16,874
how we can provide affordable

3042
01:49:20,391 --> 01:49:20,641
attainable housing for everybody

3043
01:49:22,391 --> 01:49:22,641
and especially for Oklahoma. So

3044
01:49:24,658 --> 01:49:24,908
thank you so much and it's

3045
01:49:25,224 --> 01:49:25,474
back to you

3046
01:49:30,691 --> 01:49:30,941
thank you deanna

3047
01:49:34,658 --> 01:49:34,908
a little bit of a a shift here

3048
01:49:35,258 --> 01:49:35,508
away from the road to housing

3049
01:49:38,424 --> 01:49:38,674
actct and and into some emerging

3050
01:49:39,158 --> 01:49:39,408
research that that housing

3051
01:49:41,158 --> 01:49:41,408
forward was working with urban

3052
01:49:43,124 --> 01:49:43,374
institute on specifically

3053
01:49:44,891 --> 01:49:45,141
around opportunities for faith

3054
01:49:46,691 --> 01:49:46,941
based housing and development in

3055
01:49:47,324 --> 01:49:47,574
Oklahoma

3056
01:49:48,924 --> 01:49:49,174
on the other side of of the

3057
01:49:50,624 --> 01:49:50,874
building this morning they were

3058
01:49:54,391 --> 01:49:54,641
talking about opportunities to

3059
01:49:56,658 --> 01:49:56,908
inject starter homes back

3060
01:49:57,458 --> 01:49:57,708
into our communities and and the

3061
01:49:58,924 --> 01:49:59,174
importance of that and the

3062
01:50:00,658 --> 01:50:00,908
importance of creating stair

3063
01:50:01,324 --> 01:50:01,574
steps

3064
01:50:03,424 --> 01:50:03,674
into homeownership across the

3065
01:50:06,391 --> 01:50:06,641
state of Oklahoma and so as

3066
01:50:07,124 --> 01:50:07,374
you've as you as you've seen in

3067
01:50:09,158 --> 01:50:09,408
the conversation today it is not

3068
01:50:11,124 --> 01:50:11,374
one particular policy issue that

3069
01:50:12,891 --> 01:50:13,141
moves us forward on housing

3070
01:50:15,191 --> 01:50:15,441
policy it is a plethora of

3071
01:50:16,691 --> 01:50:16,941
policy issues that many people

3072
01:50:17,324 --> 01:50:17,574
are passionate about and we have

3073
01:50:19,158 --> 01:50:19,408
to move them all forward kind of

3074
01:50:20,924 --> 01:50:21,174
at the same time which is a

3075
01:50:22,691 --> 01:50:22,941
little bit of conducting a

3076
01:50:23,258 --> 01:50:23,508
symphony but it's

3077
01:50:26,891 --> 01:50:27,141
occasionally in tune and I

3078
01:50:27,458 --> 01:50:27,708
feel like we're hitting this

3079
01:50:28,691 --> 01:50:28,941
moment in Oklahoma where there's

3080
01:50:30,391 --> 01:50:30,641
a lot of these housing policy

3081
01:50:30,991 --> 01:50:31,241
issues that are ripe and moving

3082
01:50:33,124 --> 01:50:33,374
forward at the same time which

3083
01:50:34,891 --> 01:50:35,141
creates an opportunity for great

3084
01:50:36,891 --> 01:50:37,141
progress one of the areas that

3085
01:50:38,624 --> 01:50:38,874
we have to look at when we think

3086
01:50:39,291 --> 01:50:39,541
about housing and housing

3087
01:50:40,791 --> 01:50:41,041
affordability is the land

3088
01:50:41,358 --> 01:50:41,608
available for housing

3089
01:50:41,791 --> 01:50:42,041
development.

3090
01:50:44,891 --> 01:50:45,141
many of our urban areas are

3091
01:50:46,891 --> 01:50:47,141
getting built out we're

3092
01:50:48,624 --> 01:50:48,874
having to look at where our

3093
01:50:50,391 --> 01:50:50,641
infill lots that are available

3094
01:50:50,991 --> 01:50:51,241
and ready for housing

3095
01:50:52,891 --> 01:50:53,141
development many of the

3096
01:50:54,391 --> 01:50:54,641
spaces that you see driving

3097
01:50:55,124 --> 01:50:55,374
around town that are vacant may

3098
01:50:56,391 --> 01:50:56,641
not be ripe for housing

3099
01:50:56,924 --> 01:50:57,174
development because they could

3100
01:50:58,391 --> 01:50:58,641
be in a floodplain or they could

3101
01:50:59,191 --> 01:50:59,441
not be served by utilities

3102
01:51:02,624 --> 01:51:02,874
there's a lot of issues but one

3103
01:51:03,358 --> 01:51:03,608
of the things that we look at

3104
01:51:04,891 --> 01:51:05,141
when we drive around cities and

3105
01:51:06,624 --> 01:51:06,874
towns in Oklahoma is that we

3106
01:51:08,391 --> 01:51:08,641
have a lot of faith communities

3107
01:51:09,158 --> 01:51:09,408
and those faith communities

3108
01:51:10,924 --> 01:51:11,174
are often thriving they're often

3109
01:51:14,758 --> 01:51:15,008
really vibrant but they often

3110
01:51:16,658 --> 01:51:16,908
are also situated on property

3111
01:51:18,391 --> 01:51:18,641
that's much larger than the

3112
01:51:20,658 --> 01:51:20,908
building itself often many acres

3113
01:51:22,391 --> 01:51:22,641
and and especially when you get

3114
01:51:24,624 --> 01:51:24,874
out into rural communities so we

3115
01:51:25,324 --> 01:51:25,574
partnered with theurrban

3116
01:51:26,924 --> 01:51:27,174
institute to look at some

3117
01:51:28,391 --> 01:51:28,641
legislation that had happened in

3118
01:51:29,124 --> 01:51:29,374
other states across the

3119
01:51:30,858 --> 01:51:31,108
countryvirginia state of

3120
01:51:34,358 --> 01:51:34,608
Washington state of Florida

3121
01:51:36,891 --> 01:51:37,141
have have passed legislation to

3122
01:51:38,658 --> 01:51:38,908
kind of incentivize and create

3123
01:51:40,391 --> 01:51:40,641
pathways for development of this

3124
01:51:41,124 --> 01:51:41,374
underused and unlocked land

3125
01:51:41,691 --> 01:51:41,941
associ

3126
01:51:44,424 --> 01:51:44,674
ated with faith communities

3127
01:51:45,191 --> 01:51:45,441
and we just had the very simple

3128
01:51:47,124 --> 01:51:47,374
research question of what is the

3129
01:51:48,891 --> 01:51:49,141
capacity for that in the state

3130
01:51:50,624 --> 01:51:50,874
of Oklahoma is the juice worth

3131
01:51:52,858 --> 01:51:53,108
the squeeze is there is there

3132
01:51:54,658 --> 01:51:54,908
meaningful vacant land here that

3133
01:51:56,391 --> 01:51:56,641
then we could deploy for the

3134
01:51:58,624 --> 01:51:58,874
purpose of both breathing life

3135
01:52:00,624 --> 01:52:00,874
into faith communities that

3136
01:52:02,624 --> 01:52:02,874
then now have a new stream of

3137
01:52:04,624 --> 01:52:04,874
revenue or potentially can find

3138
01:52:07,124 --> 01:52:07,374
new way to serve or to bring

3139
01:52:08,891 --> 01:52:09,141
into use under underdeveloped or

3140
01:52:10,958 --> 01:52:11,208
under utilized land and start to

3141
01:52:11,624 --> 01:52:11,874
chip away at some of the issues

3142
01:52:12,291 --> 01:52:12,541
related

3143
01:52:13,658 --> 01:52:13,908
to housing and housing need

3144
01:52:16,391 --> 01:52:16,641
so here's just a couple

3145
01:52:16,858 --> 01:52:17,108
pictures of of different

3146
01:52:19,091 --> 01:52:19,341
examples of faith communities in

3147
01:52:21,124 --> 01:52:21,374
states across the country that

3148
01:52:23,091 --> 01:52:23,341
have kind of transitioned into

3149
01:52:24,958 --> 01:52:25,208
some type of housing and housing

3150
01:52:25,624 --> 01:52:25,874
development

3151
01:52:29,158 --> 01:52:29,408
really what we saw from other

3152
01:52:30,858 --> 01:52:31,108
housing policies or other

3153
01:52:32,624 --> 01:52:32,874
policies across the country that

3154
01:52:33,324 --> 01:52:33,574
we think are particularly

3155
01:52:34,924 --> 01:52:35,174
applicable here

3156
01:52:37,124 --> 01:52:37,374
are this this deep

3157
01:52:39,124 --> 01:52:39,374
collaboration between the state

3158
01:52:42,358 --> 01:52:42,608
and municipalities zoning is

3159
01:52:43,424 --> 01:52:43,674
inherently a municipal decision

3160
01:52:46,658 --> 01:52:46,908
but there are oftentimes

3161
01:52:48,624 --> 01:52:48,874
opportunities for the state to

3162
01:52:50,658 --> 01:52:50,908
encourage municipalities to find

3163
01:52:52,891 --> 01:52:53,141
ways to unlock housing for the

3164
01:52:53,491 --> 01:52:53,741
benefit of both the

3165
01:52:54,891 --> 01:52:55,141
municipalities themselves and

3166
01:52:55,591 --> 01:52:55,841
the state and their economic

3167
01:52:56,258 --> 01:52:56,508
strategy.

3168
01:52:58,624 --> 01:52:58,874
so I'm not going to talk

3169
01:52:59,324 --> 01:52:59,574
through all of these I want to

3170
01:53:02,391 --> 01:53:02,641
be cognizant of our time but

3171
01:53:04,658 --> 01:53:04,908
what we found was there were a

3172
01:53:06,658 --> 01:53:06,908
lot of faithowned properties

3173
01:53:08,391 --> 01:53:08,641
with a lot of vacant land in the

3174
01:53:10,658 --> 01:53:10,908
state of Oklahoma and just

3175
01:53:11,391 --> 01:53:11,641
looking at Tulsa and Oklahoma

3176
01:53:14,424 --> 01:53:14,674
County we saw that many of

3177
01:53:15,124 --> 01:53:15,374
those properties were completely

3178
01:53:16,924 --> 01:53:17,174
vacant or had no structure at

3179
01:53:19,124 --> 01:53:19,374
all on them so oftentimes

3180
01:53:20,891 --> 01:53:21,141
that's land that was given to

3181
01:53:22,891 --> 01:53:23,141
the church or a faith entity

3182
01:53:24,924 --> 01:53:25,174
when a parishioner dies but

3183
01:53:25,524 --> 01:53:25,774
oftentimes these properties are

3184
01:53:26,191 --> 01:53:26,441
kind of left in

3185
01:53:29,358 --> 01:53:29,608
a limbo and and oftentimes

3186
01:53:30,658 --> 01:53:30,908
congregations don't really know

3187
01:53:31,324 --> 01:53:31,574
what to do with them

3188
01:53:35,158 --> 01:53:35,408
so we urban institute did a

3189
01:53:36,424 --> 01:53:36,674
lot more math here than I'm

3190
01:53:38,658 --> 01:53:38,908
comfortable with but they

3191
01:53:40,891 --> 01:53:41,141
they found they found that just

3192
01:53:44,691 --> 01:53:44,941
vacant land alone within a

3193
01:53:46,658 --> 01:53:46,908
city of a population of50,000 or

3194
01:53:48,658 --> 01:53:48,908
more there was six square

3195
01:53:50,924 --> 01:53:51,174
miles of available land owned by

3196
01:53:52,424 --> 01:53:52,674
faith entities in the state of

3197
01:53:54,924 --> 01:53:55,174
Oklahoma and then you look

3198
01:53:56,424 --> 01:53:56,674
further to the right on that

3199
01:53:58,391 --> 01:53:58,641
graph and you can see kind of

3200
01:54:00,658 --> 01:54:00,908
the breakdown of what zoning

3201
01:54:01,324 --> 01:54:01,574
those those parcels are in

3202
01:54:04,624 --> 01:54:04,874
either single family multifamily

3203
01:54:06,658 --> 01:54:06,908
or just commercial industrial

3204
01:54:09,124 --> 01:54:09,374
zoning in and of itself so

3205
01:54:12,391 --> 01:54:12,641
really what we see with that is

3206
01:54:13,158 --> 01:54:13,408
thinking about how to augment

3207
01:54:14,658 --> 01:54:14,908
some of those zoning

3208
01:54:16,391 --> 01:54:16,641
classifications based on

3209
01:54:17,158 --> 01:54:17,408
ownership could create

3210
01:54:18,691 --> 01:54:18,941
opportunities to really put a

3211
01:54:20,424 --> 01:54:20,674
lot of homes on the board when

3212
01:54:21,058 --> 01:54:21,308
we think about solving some of

3213
01:54:22,924 --> 01:54:23,174
the affordability crisis and and

3214
01:54:26,391 --> 01:54:26,641
some of the housing need across

3215
01:54:28,391 --> 01:54:28,641
the state of Oklahoma and we saw

3216
01:54:29,158 --> 01:54:29,408
that these faith owned parcels

3217
01:54:30,658 --> 01:54:30,908
were were literally across the

3218
01:54:31,291 --> 01:54:31,541
entire state

3219
01:54:34,624 --> 01:54:34,874
so these are obviously

3220
01:54:35,391 --> 01:54:35,641
preliminary results on this

3221
01:54:36,891 --> 01:54:37,141
research we expect the full

3222
01:54:38,891 --> 01:54:39,141
report to be delivered sometime

3223
01:54:40,891 --> 01:54:41,141
later this year but we thought

3224
01:54:42,658 --> 01:54:42,908
that it was relevant enough and

3225
01:54:44,391 --> 01:54:44,641
and pertinent enough enough to

3226
01:54:45,024 --> 01:54:45,274
this conversation to kind of

3227
01:54:46,658 --> 01:54:46,908
bring it up here as well that

3228
01:54:47,291 --> 01:54:47,541
you know there are a lot of

3229
01:54:48,658 --> 01:54:48,908
levers we can pull at the both

3230
01:54:50,391 --> 01:54:50,641
the i municipal and the state

3231
01:54:52,624 --> 01:54:52,874
level to start to chip away at

3232
01:54:53,258 --> 01:54:53,508
opportunity related to housing

3233
01:54:56,624 --> 01:54:56,874
and housing production so with

3234
01:54:58,624 --> 01:54:58,874
that quick preview I'll turn

3235
01:54:59,291 --> 01:54:59,541
it back over toenenatoral here

3236
01:55:04,391 --> 01:55:04,641
thank you so much for the

3237
01:55:05,224 --> 01:55:05,474
presentation is there any

3238
01:55:06,658 --> 01:55:06,908
there's any

3239
01:55:08,858 --> 01:55:09,108
other committee members here

3240
01:55:13,091 --> 01:55:13,341
just a but I want to thank the

3241
01:55:15,124 --> 01:55:15,374
presenters today very

3242
01:55:16,858 --> 01:55:17,108
valuable information

3243
01:55:18,391 --> 01:55:18,641
sincerely appreciate all that

3244
01:55:20,391 --> 01:55:20,641
you've brought to the

3245
01:55:22,391 --> 01:55:22,641
committee and the chair and I

3246
01:55:23,124 --> 01:55:23,374
wanna thank again the chair for

3247
01:55:26,391 --> 01:55:26,641
hearing this interim study

3248
01:55:28,758 --> 01:55:29,008
and say thanks for

3249
01:55:29,191 --> 01:55:29,441
everybody for coming I

3250
01:55:29,724 --> 01:55:29,974
appreciate it.

3251
01:55:34,858 --> 01:55:35,108
with that we will take a break

3252
01:55:36,591 --> 01:55:36,841
I actually do have some

3253
01:55:37,091 --> 01:55:37,341
questions for you but they are

3254
01:55:39,091 --> 01:55:39,341
going to be much longer than our

3255
01:55:41,124 --> 01:55:41,374
time allows today we'll take a

3256
01:55:43,124 --> 01:55:43,374
break. I will see if I can track

3257
01:55:44,858 --> 01:55:45,108
down Senator Fricks see if we

3258
01:55:47,124 --> 01:55:47,374
can get going a little early

3259
01:55:48,891 --> 01:55:49,141
but for now take a few minutes

3260
01:55:49,524 --> 01:55:49,774
go stretch your legs and we'll

3261
01:55:50,191 --> 01:55:50,441
see you shortly.

3262
02:22:13,624 --> 02:22:13,874
come on you

3263
02:23:32,724 --> 02:23:32,974
Good afternoon everyone. we are

3264
02:23:36,491 --> 02:23:36,741
back with Senator Fricks good to

3265
02:23:37,158 --> 02:23:37,408
see you.

3266
02:23:40,924 --> 02:23:41,174
thanks for coming over today and

3267
02:23:42,624 --> 02:23:42,874
like I've mentioned before a

3268
02:23:43,291 --> 02:23:43,541
few housekeeping things it's

3269
02:23:44,858 --> 02:23:45,108
going to be super casual senator

3270
02:23:46,658 --> 02:23:46,908
Frick I'm gonna let you kind

3271
02:23:48,424 --> 02:23:48,674
of run the show you don't

3272
02:23:49,124 --> 02:23:49,374
have to work through the chair

3273
02:23:50,858 --> 02:23:51,108
and we'll just have a

3274
02:23:52,758 --> 02:23:53,008
conversation and talk about our

3275
02:23:54,724 --> 02:23:54,974
taxation issuesenter for

3276
02:23:56,691 --> 02:23:56,941
explorers thank you so much

3277
02:23:57,358 --> 02:23:57,608
thank you madam chair for

3278
02:23:58,458 --> 02:23:58,708
hearing the study and for

3279
02:23:59,324 --> 02:23:59,574
allowing us to have this today

3280
02:24:00,958 --> 02:24:01,208
and want to thank everyone for

3281
02:24:02,658 --> 02:24:02,908
taking time to to join the study

3282
02:24:04,424 --> 02:24:04,674
all of our speakers and and

3283
02:24:05,291 --> 02:24:05,541
others that helped us put this

3284
02:24:06,824 --> 02:24:07,074
together. I prepared a few

3285
02:24:07,391 --> 02:24:07,641
opening remarks and

3286
02:24:08,624 --> 02:24:08,874
then after that would like to

3287
02:24:10,624 --> 02:24:10,874
just really like work through

3288
02:24:11,258 --> 02:24:11,508
the list of our incredible

3289
02:24:13,124 --> 02:24:13,374
lineup of speakers but today

3290
02:24:14,891 --> 02:24:15,141
we're taking a closer look at

3291
02:24:16,424 --> 02:24:16,674
how affordable housing

3292
02:24:17,191 --> 02:24:17,441
properties are valued for ad

3293
02:24:19,224 --> 02:24:19,474
valorem tax purposes in Oklahoma

3294
02:24:20,924 --> 02:24:21,174
and I requested this study

3295
02:24:22,691 --> 02:24:22,941
because a technical question

3296
02:24:24,691 --> 02:24:24,941
about property valuation has

3297
02:24:26,424 --> 02:24:26,674
real consequences for

3298
02:24:27,191 --> 02:24:27,441
communities local governments

3299
02:24:28,691 --> 02:24:28,941
housing providers and definitely

3300
02:24:30,958 --> 02:24:31,208
Oklahoma families. want to first

3301
02:24:32,658 --> 02:24:32,908
start with what the study is not

3302
02:24:34,458 --> 02:24:34,708
about. it's not about removing

3303
02:24:35,158 --> 02:24:35,408
affordable housing developments

3304
02:24:36,724 --> 02:24:36,974
from the tax rules unless they

3305
02:24:37,391 --> 02:24:37,641
qualify

3306
02:24:38,991 --> 02:24:39,241
for separate exemption these

3307
02:24:40,858 --> 02:24:41,108
properties pay advilom taxes.

3308
02:24:42,791 --> 02:24:43,041
The question that we're trying

3309
02:24:44,391 --> 02:24:44,641
to look at today is how to

3310
02:24:45,324 --> 02:24:45,574
determine a fair taxable value

3311
02:24:46,891 --> 02:24:47,141
when a property's rent and

3312
02:24:48,924 --> 02:24:49,174
income are legally restricted

3313
02:24:50,691 --> 02:24:50,941
the low income housing tax

3314
02:24:52,658 --> 02:24:52,908
credit which is also known as

3315
02:24:55,124 --> 02:24:55,374
LIHTc is really just a financing

3316
02:24:57,158 --> 02:24:57,408
tool a developer uses an

3317
02:24:59,024 --> 02:24:59,274
allocation of credits to attract

3318
02:25:00,758 --> 02:25:01,008
private investment for the

3319
02:25:02,424 --> 02:25:02,674
construction or rehabilitation

3320
02:25:04,891 --> 02:25:05,141
of affordable housing in return

3321
02:25:06,924 --> 02:25:07,174
the property must serve income

3322
02:25:07,524 --> 02:25:07,774
eligible residents and operate

3323
02:25:08,191 --> 02:25:08,441
under federally

3324
02:25:10,658 --> 02:25:10,908
restricted rents the investor

3325
02:25:12,391 --> 02:25:12,641
receives the tax benefit and the

3326
02:25:13,091 --> 02:25:13,341
property receives capital that

3327
02:25:14,858 --> 02:25:15,108
makes construction possible.

3328
02:25:16,724 --> 02:25:16,974
Once operating the property

3329
02:25:18,424 --> 02:25:18,674
cannot charge the same rents as

3330
02:25:19,158 --> 02:25:19,408
an unrestricted market rate

3331
02:25:20,658 --> 02:25:20,908
development and those

3332
02:25:22,658 --> 02:25:22,908
restrictions affect its income

3333
02:25:23,358 --> 02:25:23,608
and economic value

3334
02:25:26,658 --> 02:25:26,908
Oklahoma courts have addressed

3335
02:25:28,424 --> 02:25:28,674
this in the2011 case and

3336
02:25:29,191 --> 02:25:29,441
Stillwater Housing associates

3337
02:25:31,224 --> 02:25:31,474
vsusRose the Oklahoma Court of

3338
02:25:32,958 --> 02:25:33,208
Civil Appeals held that low

3339
02:25:34,724 --> 02:25:34,974
income housing tax credits are

3340
02:25:36,991 --> 02:25:37,241
not income to the property the

3341
02:25:38,458 --> 02:25:38,708
court also held that the credits

3342
02:25:40,458 --> 02:25:40,708
belonged to the investor do not

3343
02:25:41,224 --> 02:25:41,474
run with the land and our

3344
02:25:44,391 --> 02:25:44,641
intangible property personal

3345
02:25:45,058 --> 02:25:45,308
property exempt from advaloum

3346
02:25:46,958 --> 02:25:47,208
taxation under the Oklahoma

3347
02:25:48,958 --> 02:25:49,208
constitution. The concern is

3348
02:25:50,424 --> 02:25:50,674
that this framework is not

3349
02:25:51,224 --> 02:25:51,474
applied uniformly across the

3350
02:25:52,958 --> 02:25:53,208
state. Many county assessors

3351
02:25:53,524 --> 02:25:53,774
value these properties based on

3352
02:25:54,191 --> 02:25:54,441
their

3353
02:25:56,891 --> 02:25:57,141
restricted rents and actual

3354
02:25:58,691 --> 02:25:58,941
operating income others may use

3355
02:26:00,424 --> 02:26:00,674
the market rate assumptions or

3356
02:26:02,424 --> 02:26:02,674
include the value of the tax

3357
02:26:03,191 --> 02:26:03,441
credits and similar properties

3358
02:26:04,891 --> 02:26:05,141
can therefore receive

3359
02:26:06,391 --> 02:26:06,641
substantially different

3360
02:26:07,191 --> 02:26:07,441
valuations depending on where

3361
02:26:08,658 --> 02:26:08,908
they are located within our

3362
02:26:09,191 --> 02:26:09,441
state

3363
02:26:12,391 --> 02:26:12,641
earlier this year I was a senate

3364
02:26:14,891 --> 02:26:15,141
author for House Bill4305. The

3365
02:26:16,658 --> 02:26:16,908
bill proposed a restricted rent

3366
02:26:18,424 --> 02:26:18,674
income approach using financial

3367
02:26:20,424 --> 02:26:20,674
information from the property

3368
02:26:21,191 --> 02:26:21,441
and capitalization rates derived

3369
02:26:23,124 --> 02:26:23,374
from the comparable rent

3370
02:26:25,158 --> 02:26:25,408
restricted properties it also

3371
02:26:26,891 --> 02:26:27,141
provided that housing tax

3372
02:26:28,424 --> 02:26:28,674
credits would not be counted as

3373
02:26:30,424 --> 02:26:30,674
income attributable to the real

3374
02:26:32,691 --> 02:26:32,941
estate. That proposal gives us a

3375
02:26:34,391 --> 02:26:34,641
starting point but today's study

3376
02:26:35,124 --> 02:26:35,374
should not be limited to just

3377
02:26:37,158 --> 02:26:37,408
that bill. my goal today is to

3378
02:26:38,658 --> 02:26:38,908
hear and to understand how these

3379
02:26:39,324 --> 02:26:39,574
properties

3380
02:26:41,124 --> 02:26:41,374
operate, how they are currently

3381
02:26:43,124 --> 02:26:43,374
valued and whether Oklahoma law

3382
02:26:44,891 --> 02:26:45,141
provides enough clarity for both

3383
02:26:45,558 --> 02:26:45,808
taxpayers and assessors

3384
02:26:48,391 --> 02:26:48,641
we also need to understand the

3385
02:26:50,658 --> 02:26:50,908
broader economic context an

3386
02:26:52,391 --> 02:26:52,641
economic impact study prepared

3387
02:26:53,091 --> 02:26:53,341
by our Oklahoma department of

3388
02:26:54,858 --> 02:26:55,108
Commerce examined developments

3389
02:26:55,558 --> 02:26:55,808
supported by Oklahoma

3390
02:26:56,891 --> 02:26:57,141
Stateffordable housing tax

3391
02:27:00,858 --> 02:27:01,108
credits from2015 through2024. it

3392
02:27:02,624 --> 02:27:02,874
does not address the specific

3393
02:27:04,624 --> 02:27:04,874
valuation question before us but

3394
02:27:06,891 --> 02:27:07,141
it's findings do show what is at

3395
02:27:09,158 --> 02:27:09,408
stake approximately $39.3

3396
02:27:10,891 --> 02:27:11,141
million in state housing tax

3397
02:27:13,158 --> 02:27:13,408
credits supported71 developments

3398
02:27:15,124 --> 02:27:15,374
at75 locations in40 communities

3399
02:27:15,791 --> 02:27:16,041
and 33

3400
02:27:18,891 --> 02:27:19,141
counties. Those projects

3401
02:27:22,358 --> 02:27:22,608
produce5,762 housing units and

3402
02:27:24,624 --> 02:27:24,874
more than752 million in direct

3403
02:27:26,624 --> 02:27:26,874
construction activity the

3404
02:27:28,391 --> 02:27:28,641
department of commerce estimated

3405
02:27:29,091 --> 02:27:29,341
that nearly2 billion dollars in

3406
02:27:32,391 --> 02:27:32,641
total economic activity from2017

3407
02:27:34,858 --> 02:27:35,108
through2025 and that investment

3408
02:27:36,624 --> 02:27:36,874
reaches well beyond our largest

3409
02:27:39,158 --> 02:27:39,408
metropolitan areas.56 of the75

3410
02:27:40,658 --> 02:27:40,908
developments were located

3411
02:27:42,391 --> 02:27:42,641
outside of Oklahoma, Tulsa and

3412
02:27:44,391 --> 02:27:44,641
Cleveland counties. These

3413
02:27:45,124 --> 02:27:45,374
properties can replace aging

3414
02:27:45,691 --> 02:27:45,941
housing stock meet meet

3415
02:27:48,391 --> 02:27:48,641
workforce needs and help

3416
02:27:49,124 --> 02:27:49,374
communities attract and retain

3417
02:27:51,091 --> 02:27:51,341
employees they also contribute

3418
02:27:53,124 --> 02:27:53,374
to our local tax base assuming

3419
02:27:54,858 --> 02:27:55,108
property values remain level the

3420
02:27:56,624 --> 02:27:56,874
commerce report estimated

3421
02:27:58,624 --> 02:27:58,874
potential annual property tax

3422
02:28:00,858 --> 02:28:01,108
generation of approximately 8.75

3423
02:28:02,624 --> 02:28:02,874
million from the properties it

3424
02:28:03,291 --> 02:28:03,541
studied

3425
02:28:06,591 --> 02:28:06,841
but fairness must run both ways

3426
02:28:08,591 --> 02:28:08,841
schools counties and other local

3427
02:28:10,358 --> 02:28:10,608
services depend on a stable

3428
02:28:12,391 --> 02:28:12,641
property tax base assessors need

3429
02:28:13,124 --> 02:28:13,374
reliable information and

3430
02:28:15,124 --> 02:28:15,374
workable standards property

3431
02:28:17,158 --> 02:28:17,408
owners need predictability and

3432
02:28:18,891 --> 02:28:19,141
consistency with the application

3433
02:28:21,124 --> 02:28:21,374
of the law. A fair system should

3434
02:28:22,624 --> 02:28:22,874
recognize both the taxable real

3435
02:28:24,391 --> 02:28:24,641
estate and legal restrictions

3436
02:28:26,391 --> 02:28:26,641
that shape its income and value

3437
02:28:27,158 --> 02:28:27,408
as we hear from today's

3438
02:28:28,924 --> 02:28:29,174
presenters I hope we will focus

3439
02:28:30,891 --> 02:28:31,141
on four big questions. First,

3440
02:28:32,624 --> 02:28:32,874
what valuation methods are being

3441
02:28:33,291 --> 02:28:33,541
used across Oklaho

3442
02:28:35,158 --> 02:28:35,408
ma and how much do they vary?

3443
02:28:38,391 --> 02:28:38,641
Second, how should restricted

3444
02:28:39,124 --> 02:28:39,374
rents operating expenses

3445
02:28:41,391 --> 02:28:41,641
occupancy during lease up and

3446
02:28:42,924 --> 02:28:43,174
appropriate capitalization rates

3447
02:28:44,891 --> 02:28:45,141
be reflected.hird, what

3448
02:28:46,391 --> 02:28:46,641
information should owners

3449
02:28:48,391 --> 02:28:48,641
provide so assessors can make

3450
02:28:50,391 --> 02:28:50,641
accurate and timely valuations

3451
02:28:52,658 --> 02:28:52,908
and lastly finally can we

3452
02:28:53,391 --> 02:28:53,641
establish a uniform approach

3453
02:28:55,158 --> 02:28:55,408
that reflects the2011 court

3454
02:28:56,924 --> 02:28:57,174
decision protects local

3455
02:28:58,891 --> 02:28:59,141
revenues, reduces disputes and

3456
02:29:00,658 --> 02:29:00,908
gives communities and housing

3457
02:29:02,391 --> 02:29:02,641
providers greater certainty.

3458
02:29:02,958 --> 02:29:03,208
Again we want to thank everyone

3459
02:29:03,624 --> 02:29:03,874
for for being

3460
02:29:06,358 --> 02:29:06,608
here and excited to hear from

3461
02:29:07,124 --> 02:29:07,374
everybody today really

3462
02:29:08,924 --> 02:29:09,174
appreciate everyone for agreeing

3463
02:29:10,624 --> 02:29:10,874
to take some time and speak.

3464
02:29:11,391 --> 02:29:11,641
we're gonna start with

3465
02:29:13,191 --> 02:29:13,441
Katrina Washington who's here if

3466
02:29:14,924 --> 02:29:15,174
she would come forward for us.

3467
02:29:16,658 --> 02:29:16,908
she's the executive director of

3468
02:29:18,391 --> 02:29:18,641
NHS Oakla

3469
02:29:20,691 --> 02:29:20,941
and so with that madam chair we

3470
02:29:21,391 --> 02:29:21,641
turn it over to Miss Washington.

3471
02:29:30,891 --> 02:29:31,141
kind of done them back to back

3472
02:29:32,658 --> 02:29:32,908
because you had to stay for a

3473
02:29:33,258 --> 02:29:33,508
whole study that well it's

3474
02:29:34,658 --> 02:29:34,908
housing you're probably

3475
02:29:35,391 --> 02:29:35,641
interested in you'll go ahead

3476
02:29:36,658 --> 02:29:36,908
and introduce yourself and then

3477
02:29:38,624 --> 02:29:38,874
the flourishers yes I'm Katrina

3478
02:29:40,658 --> 02:29:40,908
Washington and executive

3479
02:29:41,158 --> 02:29:41,408
director for neighborighbourhood

3480
02:29:44,658 --> 02:29:44,908
housingervices Oklahoma so

3481
02:29:45,224 --> 02:29:45,474
thank you

3482
02:29:48,891 --> 02:29:49,141
so yes we have been

3483
02:29:52,391 --> 02:29:52,641
experiencing some

3484
02:29:54,391 --> 02:29:54,641
difficulty with some

3485
02:29:56,391 --> 02:29:56,641
valuations we are often

3486
02:29:58,658 --> 02:29:58,908
nonprofit partner with a lot

3487
02:30:00,891 --> 02:30:01,141
of developers here in

3488
02:30:02,624 --> 02:30:02,874
Oklahoma

3489
02:30:06,391 --> 02:30:06,641
how that would affect a lot of

3490
02:30:09,091 --> 02:30:09,341
the low income people so

3491
02:30:10,891 --> 02:30:11,141
that is what I would like to was

3492
02:30:12,658 --> 02:30:12,908
to start with so I'm sorry it

3493
02:30:14,658 --> 02:30:14,908
wouldn't planning on being part

3494
02:30:15,291 --> 02:30:15,541
of this

3495
02:30:17,158 --> 02:30:17,408
this study so

3496
02:30:19,191 --> 02:30:19,441
when we

3497
02:30:24,658 --> 02:30:24,908
go forward and we are

3498
02:30:26,924 --> 02:30:27,174
introduced into a development or

3499
02:30:30,391 --> 02:30:30,641
a line tech project the

3500
02:30:32,391 --> 02:30:32,641
developer will introduce us

3501
02:30:33,358 --> 02:30:33,608
they'll come to us and say

3502
02:30:35,124 --> 02:30:35,374
neighborigh housing services we

3503
02:30:38,391 --> 02:30:38,641
have a project let's say

3504
02:30:42,391 --> 02:30:42,641
there's a200 unit project

3505
02:30:44,624 --> 02:30:44,874
they would like to make that

3506
02:30:47,158 --> 02:30:47,408
project affordable so they will

3507
02:30:50,458 --> 02:30:50,708
ask us to be the nonprofit

3508
02:30:50,991 --> 02:30:51,241
partner to

3509
02:30:53,158 --> 02:30:53,408
provide for

3510
02:30:58,391 --> 02:30:58,641
let me start over provide for

3511
02:31:00,658 --> 02:31:00,908
low income that would be below

3512
02:31:03,391 --> 02:31:03,641
80% or sometimes 30 to60% AMI

3513
02:31:08,391 --> 02:31:08,641
individuals the importance of

3514
02:31:12,458 --> 02:31:12,708
that would be to provide for

3515
02:31:13,024 --> 02:31:13,274
additional

3516
02:31:16,391 --> 02:31:16,641
units we currently have about

3517
02:31:19,158 --> 02:31:19,408
3500 units across the state

3518
02:31:24,624 --> 02:31:24,874
of Oklahoma so without the tax

3519
02:31:27,124 --> 02:31:27,374
exemptions that would be lost

3520
02:31:30,891 --> 02:31:31,141
currently so it's important

3521
02:31:32,724 --> 02:31:32,974
to keep that tax exemption in

3522
02:31:33,391 --> 02:31:33,641
place.

3523
02:31:35,124 --> 02:31:35,374
that's will start there

3524
02:31:39,158 --> 02:31:39,408
the

3525
02:31:43,158 --> 02:31:43,408
we are often the nonprofit

3526
02:31:46,391 --> 02:31:46,641
partner and and it's it's very

3527
02:31:49,091 --> 02:31:49,341
simple partnership when the

3528
02:31:50,858 --> 02:31:51,108
developer goes to let's say

3529
02:31:52,391 --> 02:31:52,641
Oakland housing finance Agency

3530
02:31:54,424 --> 02:31:54,674
that was just speaking they will

3531
02:31:55,124 --> 02:31:55,374
ask for what's called tax

3532
02:31:57,091 --> 02:31:57,341
credits. We come in as a

3533
02:31:58,858 --> 02:31:59,108
nonprofit partner that would

3534
02:32:02,591 --> 02:32:02,841
provide for a tax exemption on

3535
02:32:04,658 --> 02:32:04,908
the project that the developer

3536
02:32:07,124 --> 02:32:07,374
is asking for let's say 10

3537
02:32:10,624 --> 02:32:10,874
million or20 million on a200

3538
02:32:11,191 --> 02:32:11,441
unit apartment

3539
02:32:14,624 --> 02:32:14,874
complex we come in just to

3540
02:32:16,858 --> 02:32:17,108
provide that tax exemption on

3541
02:32:18,891 --> 02:32:19,141
the project

3542
02:32:22,858 --> 02:32:23,108
we provide also compliance so we

3543
02:32:24,858 --> 02:32:25,108
go in and make sure that that

3544
02:32:28,424 --> 02:32:28,674
developer actually does make

3545
02:32:30,391 --> 02:32:30,641
a number of those units

3546
02:32:32,858 --> 02:32:33,108
affordable to low income

3547
02:32:34,858 --> 02:32:35,108
individuals so as

3548
02:32:40,391 --> 02:32:40,641
the housing nonwe let me say

3549
02:32:41,091 --> 02:32:41,341
what neighborigh housingervices

3550
02:32:44,624 --> 02:32:44,874
does we provide for our housing

3551
02:32:46,624 --> 02:32:46,874
counseling we come in and we

3552
02:32:49,091 --> 02:32:49,341
make sure that the individuals

3553
02:32:50,391 --> 02:32:50,641
are receiving supportive

3554
02:32:53,091 --> 02:32:53,341
services so we provide for

3555
02:32:56,391 --> 02:32:56,641
housing counseling services we

3556
02:32:58,358 --> 02:32:58,608
have individuals come in and

3557
02:33:00,624 --> 02:33:00,874
learn about how to get back

3558
02:33:02,391 --> 02:33:02,641
on their feet budget credit

3559
02:33:04,658 --> 02:33:04,908
housing counseling down payment

3560
02:33:05,291 --> 02:33:05,541
assistance and we provide those

3561
02:33:08,858 --> 02:33:09,108
services for the developer so

3562
02:33:11,124 --> 02:33:11,374
when they partner with us as a

3563
02:33:12,858 --> 02:33:13,108
nonprofit they received that tax

3564
02:33:16,391 --> 02:33:16,641
exemption so they were provide

3565
02:33:18,658 --> 02:33:18,908
their application for the tax

3566
02:33:20,424 --> 02:33:20,674
credits they can say we have a

3567
02:33:21,091 --> 02:33:21,341
nonprofit partner that's going

3568
02:33:23,224 --> 02:33:23,474
to provide supporter services on

3569
02:33:23,891 --> 02:33:24,141
their application

3570
02:33:28,424 --> 02:33:28,674
they often will offer us a small

3571
02:33:30,424 --> 02:33:30,674
percentage of ownership but then

3572
02:33:32,658 --> 02:33:32,908
for the for their project

3573
02:33:36,624 --> 02:33:36,874
and we are a partner with that

3574
02:33:38,624 --> 02:33:38,874
project for a number of years

3575
02:33:42,391 --> 02:33:42,641
for 1f to20 years so we are a

3576
02:33:44,424 --> 02:33:44,674
partner long term to make sure

3577
02:33:47,124 --> 02:33:47,374
these developments stay low

3578
02:33:49,124 --> 02:33:49,374
income we are there for

3579
02:33:50,891 --> 02:33:51,141
supportive services for the

3580
02:33:52,658 --> 02:33:52,908
individuals in these

3581
02:33:54,891 --> 02:33:55,141
apartment complexes whether

3582
02:33:57,158 --> 02:33:57,408
they're 30%60% income

3583
02:34:00,624 --> 02:34:00,874
income driven

3584
02:34:04,458 --> 02:34:04,708
and then yeah so we're therefore

3585
02:34:05,124 --> 02:34:05,374
that compliance piece

3586
02:34:08,391 --> 02:34:08,641
thank you so much for for

3587
02:34:10,391 --> 02:34:10,641
sharing that and sorry to put

3588
02:34:10,991 --> 02:34:11,241
you on the spot there we had

3589
02:34:12,658 --> 02:34:12,908
another speaker that I wasn't

3590
02:34:13,258 --> 02:34:13,508
able to make it so I thought

3591
02:34:14,924 --> 02:34:15,174
your perspective there is

3592
02:34:16,391 --> 02:34:16,641
incredibly important so thank

3593
02:34:17,124 --> 02:34:17,374
you very much for for sharing

3594
02:34:18,658 --> 02:34:18,908
that we want to move

3595
02:34:20,658 --> 02:34:20,908
tolanceinndell he's president of

3596
02:34:22,391 --> 02:34:22,641
Lw Development and appreciate

3597
02:34:23,391 --> 02:34:23,641
him being here and madam chairir

3598
02:34:24,058 --> 02:34:24,308
I'd like to turn over to Mr

3599
02:34:24,624 --> 02:34:24,874
Wendell

3600
02:34:31,158 --> 02:34:31,408
there it is let's try that

3601
02:34:32,424 --> 02:34:32,674
again. Good afternoon. thanks

3602
02:34:32,991 --> 02:34:33,241
for having me today.

3603
02:34:36,391 --> 02:34:36,641
I I think probably the

3604
02:34:37,191 --> 02:34:37,441
quickest thing that I can do is

3605
02:34:38,924 --> 02:34:39,174
is make sure we kind of level

3606
02:34:40,424 --> 02:34:40,674
the playing field there's a lot

3607
02:34:41,058 --> 02:34:41,308
of acronyms that we get thrown

3608
02:34:42,658 --> 02:34:42,908
around in here and so I can I

3609
02:34:43,324 --> 02:34:43,574
can kind of help with some of

3610
02:34:44,424 --> 02:34:44,674
that because I've been doing

3611
02:34:46,424 --> 02:34:46,674
this for a long time and I

3612
02:34:48,691 --> 02:34:48,941
keeps it simple for me we're

3613
02:34:49,258 --> 02:34:49,508
here mainly today to talk about

3614
02:34:50,658 --> 02:34:50,908
the light tech low income

3615
02:34:52,891 --> 02:34:53,141
housing tax credit right and and

3616
02:34:55,424 --> 02:34:55,674
how it how it builds housing

3617
02:34:56,958 --> 02:34:57,208
in Oklahoma and then how do we

3618
02:34:58,691 --> 02:34:58,941
assess that when we need to tax

3619
02:34:59,324 --> 02:34:59,574
it or we need to tax that

3620
02:35:02,391 --> 02:35:02,641
property tax and so first we can

3621
02:35:03,124 --> 02:35:03,374
talk the we call it light tech

3622
02:35:03,791 --> 02:35:04,041
lowcome housing tax credit

3623
02:35:06,391 --> 02:35:06,641
we also call it section42.

3624
02:35:07,191 --> 02:35:07,441
you'll have some people referred

3625
02:35:10,624 --> 02:35:10,874
to it as 9% or4% credits but

3626
02:35:12,391 --> 02:35:12,641
basically it's a tax credit that

3627
02:35:14,391 --> 02:35:14,641
developers receive in order to

3628
02:35:16,424 --> 02:35:16,674
build houses and generally

3629
02:35:17,058 --> 02:35:17,308
those lie techs are in in the

3630
02:35:18,624 --> 02:35:18,874
state of Oklahoma those lites

3631
02:35:20,391 --> 02:35:20,641
are awarded by OA the Ocom

3632
02:35:21,191 --> 02:35:21,441
Housing Finance Agency Darrell

3633
02:35:22,658 --> 02:35:22,908
beavers was here a few minutes

3634
02:35:24,624 --> 02:35:24,874
ago he kind of runs that show in

3635
02:35:26,458 --> 02:35:26,708
awarding lightex so we we call

3636
02:35:27,124 --> 02:35:27,374
themOFfa

3637
02:35:30,391 --> 02:35:30,641
they provide light text and

3638
02:35:32,391 --> 02:35:32,641
then so a developer like myself

3639
02:35:33,124 --> 02:35:33,374
will go to OA it's a very

3640
02:35:34,624 --> 02:35:34,874
competitive process and we'll

3641
02:35:35,224 --> 02:35:35,474
ask for an award of credits

3642
02:35:37,091 --> 02:35:37,341
and40 of us might ask and only

3643
02:35:38,391 --> 02:35:38,641
10 of us are going to get

3644
02:35:39,124 --> 02:35:39,374
awarded because there just

3645
02:35:40,858 --> 02:35:41,108
aren't enough to go around right

3646
02:35:41,558 --> 02:35:41,808
but if we're lucky and we get

3647
02:35:44,391 --> 02:35:44,641
ours then our next step once

3648
02:35:45,124 --> 02:35:45,374
we've been awarded hey we want

3649
02:35:47,124 --> 02:35:47,374
to build40 houses in Ardmore is

3650
02:35:48,691 --> 02:35:48,941
we'll get that award but we

3651
02:35:49,324 --> 02:35:49,574
still have to go get a

3652
02:35:50,858 --> 02:35:51,108
construction loan so our next

3653
02:35:52,391 --> 02:35:52,641
step would be to go get a

3654
02:35:53,091 --> 02:35:53,341
construction loan we'll get a

3655
02:35:54,658 --> 02:35:54,908
construction loan we'll build

3656
02:35:56,758 --> 02:35:57,008
our houses or apartments and

3657
02:35:57,324 --> 02:35:57,574
then after that

3658
02:35:59,458 --> 02:35:59,708
we'll take those credits that

3659
02:36:00,624 --> 02:36:00,874
were awarded to us they don't

3660
02:36:02,391 --> 02:36:02,641
really exist until we've got the

3661
02:36:03,091 --> 02:36:03,341
houses built but we'll take

3662
02:36:05,091 --> 02:36:05,341
those credits and let's say we

3663
02:36:06,891 --> 02:36:07,141
had a $10 million construction

3664
02:36:08,658 --> 02:36:08,908
loan and we've got a set of

3665
02:36:10,358 --> 02:36:10,608
credits from Ola and we can sell

3666
02:36:12,391 --> 02:36:12,641
those for5 million dollars to an

3667
02:36:13,124 --> 02:36:13,374
investor that will come into our

3668
02:36:14,891 --> 02:36:15,141
deal so now our construction

3669
02:36:16,858 --> 02:36:17,108
loan went from $10 million down

3670
02:36:18,624 --> 02:36:18,874
to5 million dollars we're still

3671
02:36:20,391 --> 02:36:20,641
going to have a5 million dollars

3672
02:36:21,158 --> 02:36:21,408
perm loan so we still have a

3673
02:36:22,624 --> 02:36:22,874
loan that we have to have but

3674
02:36:24,424 --> 02:36:24,674
it's half maybe or sometimes

3675
02:36:25,024 --> 02:36:25,274
less of what it should have been

3676
02:36:28,924 --> 02:36:29,174
but in exchange for that we've

3677
02:36:30,924 --> 02:36:31,174
promised to the state and

3678
02:36:32,391 --> 02:36:32,641
federal government that we're

3679
02:36:33,024 --> 02:36:33,274
going to rent those units for a

3680
02:36:34,924 --> 02:36:35,174
lower rate right so where the

3681
02:36:36,624 --> 02:36:36,874
rent might have been $1500 a

3682
02:36:38,391 --> 02:36:38,641
month for that apartment it's

3683
02:36:39,158 --> 02:36:39,408
only going to be $1000 a month

3684
02:36:40,924 --> 02:36:41,174
right and the way that they kind

3685
02:36:42,891 --> 02:36:43,141
of hold us to that is they have

3686
02:36:44,658 --> 02:36:44,908
us sign what's called a urra a

3687
02:36:46,391 --> 02:36:46,641
limited use restrictive

3688
02:36:47,158 --> 02:36:47,408
agreement so we have to sign

3689
02:36:48,924 --> 02:36:49,174
this law and we have to file it

3690
02:36:50,624 --> 02:36:50,874
with the county right and it

3691
02:36:52,391 --> 02:36:52,641
restricts that property

3692
02:36:53,158 --> 02:36:53,408
generally for either the next 30

3693
02:36:55,158 --> 02:36:55,408
or40 years so for irty or40

3694
02:36:55,724 --> 02:36:55,974
years we've got

3695
02:36:58,524 --> 02:36:58,774
to follow all these rules

3696
02:36:59,291 --> 02:36:59,541
there's a lot of compliance that

3697
02:37:01,124 --> 02:37:01,374
we have to do in in order to

3698
02:37:03,124 --> 02:37:03,374
have received those tax credits

3699
02:37:06,391 --> 02:37:06,641
so that is kind of where aid

3700
02:37:08,924 --> 02:37:09,174
comes into now an assessor has

3701
02:37:10,391 --> 02:37:10,641
got to figure out what the heck

3702
02:37:12,691 --> 02:37:12,941
is this thing worth right

3703
02:37:14,424 --> 02:37:14,674
because it's not worth the same

3704
02:37:15,058 --> 02:37:15,308
thing as an open market

3705
02:37:16,658 --> 02:37:16,908
apartment complex or a single

3706
02:37:18,658 --> 02:37:18,908
family home it's got this weird

3707
02:37:19,358 --> 02:37:19,608
restriction called allur on it

3708
02:37:22,624 --> 02:37:22,874
so most of us have been in the

3709
02:37:23,224 --> 02:37:23,474
industry and and and kind of

3710
02:37:24,391 --> 02:37:24,641
common knowledge there are about

3711
02:37:25,124 --> 02:37:25,374
three different ways to figure

3712
02:37:26,658 --> 02:37:26,908
out what something's worth when

3713
02:37:28,391 --> 02:37:28,641
we're talking about appraising

3714
02:37:29,158 --> 02:37:29,408
right and the the first one

3715
02:37:30,624 --> 02:37:30,874
would be the comparables

3716
02:37:31,124 --> 02:37:31,374
comparables is great when you're

3717
02:37:32,424 --> 02:37:32,674
trying to sell a single family

3718
02:37:34,424 --> 02:37:34,674
house up ineddmond right and

3719
02:37:35,158 --> 02:37:35,408
there was fi0 single family

3720
02:37:36,724 --> 02:37:36,974
houses in the neighborhood that

3721
02:37:37,324 --> 02:37:37,574
have sold in the past three

3722
02:37:38,924 --> 02:37:39,174
years and and the praser can

3723
02:37:40,624 --> 02:37:40,874
look at that and go hey this is

3724
02:37:42,658 --> 02:37:42,908
what those houses are going for

3725
02:37:44,424 --> 02:37:44,674
right? hard to do with the light

3726
02:37:46,424 --> 02:37:46,674
tech apartment complex because a

3727
02:37:47,158 --> 02:37:47,408
they're very very difficult to

3728
02:37:48,658 --> 02:37:48,908
sell and b there aren't that

3729
02:37:49,291 --> 02:37:49,541
many of them and so it's really

3730
02:37:49,958 --> 02:37:50,208
hard to come up with comp

3731
02:37:52,458 --> 02:37:52,708
s when you're trying to do light

3732
02:37:54,391 --> 02:37:54,641
tech and so generally that's not

3733
02:37:56,424 --> 02:37:56,674
a great way to do it we've seen

3734
02:37:57,158 --> 02:37:57,408
some assessors try but it's just

3735
02:37:58,891 --> 02:37:59,141
it's really difficult. The cops

3736
02:38:00,391 --> 02:38:00,641
don't work the cops aren't in

3737
02:38:01,124 --> 02:38:01,374
that town they're never the same

3738
02:38:02,891 --> 02:38:03,141
size you know one's irty years

3739
02:38:04,658 --> 02:38:04,908
older than the other one so the

3740
02:38:06,391 --> 02:38:06,641
comparable method is kind of a

3741
02:38:07,024 --> 02:38:07,274
kind of a problem you know the

3742
02:38:08,658 --> 02:38:08,908
next one would be the

3743
02:38:10,391 --> 02:38:10,641
construction cost method. Hey

3744
02:38:11,158 --> 02:38:11,408
you just built it. Shouln't it

3745
02:38:12,658 --> 02:38:12,908
be worth what it costs you to

3746
02:38:14,624 --> 02:38:14,874
build and I will tell you in

3747
02:38:16,658 --> 02:38:16,908
open market that makes a lot of

3748
02:38:17,358 --> 02:38:17,608
sense matter of fact there was

3749
02:38:18,924 --> 02:38:19,174
recently some legislation run to

3750
02:38:19,558 --> 02:38:19,808
try to say absolutely in

3751
02:38:22,891 --> 02:38:23,141
an open market apartment complex

3752
02:38:24,891 --> 02:38:25,141
what we should what we should

3753
02:38:26,658 --> 02:38:26,908
assess that for for at least the

3754
02:38:27,358 --> 02:38:27,608
first couple of years while it's

3755
02:38:28,858 --> 02:38:29,108
going to lease up is what it

3756
02:38:30,624 --> 02:38:30,874
costs to build it that's fair we

3757
02:38:31,358 --> 02:38:31,608
shouldn't be trying to

3758
02:38:32,658 --> 02:38:32,908
anticipate what it's going to be

3759
02:38:33,358 --> 02:38:33,608
worth in three years because the

3760
02:38:34,758 --> 02:38:35,008
rents go up that doesn't make

3761
02:38:35,424 --> 02:38:35,674
any sense.

3762
02:38:38,391 --> 02:38:38,641
but when it comes to lie tech

3763
02:38:39,124 --> 02:38:39,374
that that doesn't quite work

3764
02:38:40,658 --> 02:38:40,908
because keep in mind it might

3765
02:38:42,391 --> 02:38:42,641
have cost us $10 million to

3766
02:38:43,024 --> 02:38:43,274
build it but we're only getting

3767
02:38:44,658 --> 02:38:44,908
the rents of5 million dollars

3768
02:38:46,658 --> 02:38:46,908
because of that big credit that

3769
02:38:48,391 --> 02:38:48,641
we received so construction

3770
02:38:49,058 --> 02:38:49,308
costs while it might work really

3771
02:38:50,658 --> 02:38:50,908
well for open market

3772
02:38:54,391 --> 02:38:54,641
man open market multifamily

3773
02:38:55,391 --> 02:38:55,641
housing really tough to make

3774
02:38:56,658 --> 02:38:56,908
work with light tech and so that

3775
02:38:57,291 --> 02:38:57,541
leaves us with the income

3776
02:38:58,924 --> 02:38:59,174
approach which makes a lot of

3777
02:39:00,891 --> 02:39:01,141
sense right ok so the income

3778
02:39:02,658 --> 02:39:02,908
approach how much rents are you

3779
02:39:03,291 --> 02:39:03,541
gonna get? what are your

3780
02:39:04,891 --> 02:39:05,141
expenses gonna be right and

3781
02:39:05,458 --> 02:39:05,708
based on that it really

3782
02:39:06,524 --> 02:39:06,774
turns that

3783
02:39:09,124 --> 02:39:09,374
that apartment complex that we

3784
02:39:10,891 --> 02:39:11,141
have important families living

3785
02:39:12,891 --> 02:39:13,141
in into something that we can

3786
02:39:14,891 --> 02:39:15,141
assess based on what is it worth

3787
02:39:16,891 --> 02:39:17,141
based on its income right and so

3788
02:39:18,624 --> 02:39:18,874
that really is kind of what we

3789
02:39:20,658 --> 02:39:20,908
see is the best way to do it

3790
02:39:22,391 --> 02:39:22,641
and when the appraiser does it

3791
02:39:24,624 --> 02:39:24,874
right they need to assume the

3792
02:39:26,424 --> 02:39:26,674
fact that we have this laura

3793
02:39:27,024 --> 02:39:27,274
that says well it should be

3794
02:39:28,624 --> 02:39:28,874
raining for $1500 a month but

3795
02:39:29,224 --> 02:39:29,474
it's only renting for $1000 a

3796
02:39:31,124 --> 02:39:31,374
month so it it can't be worth

3797
02:39:32,891 --> 02:39:33,141
the same right and they have to

3798
02:39:34,624 --> 02:39:34,874
account for a lot of the other

3799
02:39:36,391 --> 02:39:36,641
restrictions right we have to

3800
02:39:37,024 --> 02:39:37,274
look at it's not very easy to

3801
02:39:37,691 --> 02:39:37,941
sell

3802
02:39:39,358 --> 02:39:39,608
I'm not generally allowed to

3803
02:39:40,891 --> 02:39:41,141
sell it without asking for

3804
02:39:42,624 --> 02:39:42,874
permission from the investor and

3805
02:39:43,324 --> 02:39:43,574
the lender

3806
02:39:45,058 --> 02:39:45,308
and Ofa right so that's not

3807
02:39:46,858 --> 02:39:47,108
normal where you know I can just

3808
02:39:48,391 --> 02:39:48,641
sell my house when I want you

3809
02:39:48,991 --> 02:39:49,241
know I've got like 3 different

3810
02:39:50,858 --> 02:39:51,108
permissions so selling needs is

3811
02:39:52,658 --> 02:39:52,908
really really difficult and so

3812
02:39:53,358 --> 02:39:53,608
all these things need to be

3813
02:39:54,624 --> 02:39:54,874
accounted for when we look at

3814
02:39:55,391 --> 02:39:55,641
the income approach

3815
02:39:59,358 --> 02:39:59,608
and so I wanna go why does it ok

3816
02:40:00,891 --> 02:40:01,141
great but why does this matter

3817
02:40:01,558 --> 02:40:01,808
and why does this need to be at

3818
02:40:03,124 --> 02:40:03,374
the legislative level because we

3819
02:40:04,858 --> 02:40:05,108
have other people that are

3820
02:40:06,891 --> 02:40:07,141
involved in the game and I'm

3821
02:40:10,391 --> 02:40:10,641
very scared of a developer to go

3822
02:40:12,391 --> 02:40:12,641
to some counties where I'm not

3823
02:40:13,024 --> 02:40:13,274
sure that that appraiser gets

3824
02:40:14,658 --> 02:40:14,908
it. I will be very honest there

3825
02:40:16,391 --> 02:40:16,641
are a lot of great appraisers in

3826
02:40:17,191 --> 02:40:17,441
the state of Oklahoma and most

3827
02:40:18,924 --> 02:40:19,174
of them I work with get it right

3828
02:40:20,391 --> 02:40:20,641
and I come to them and it's a

3829
02:40:21,158 --> 02:40:21,408
very easy conversation and they

3830
02:40:23,158 --> 02:40:23,408
got it but every now and then

3831
02:40:24,891 --> 02:40:25,141
right you run into one and I

3832
02:40:26,491 --> 02:40:26,741
will tell you I have a couple of

3833
02:40:27,158 --> 02:40:27,408
different counties that

3834
02:40:29,024 --> 02:40:29,274
I'm just not interested in

3835
02:40:29,558 --> 02:40:29,808
developing in because

3836
02:40:31,491 --> 02:40:31,741
that and a couple of other

3837
02:40:32,658 --> 02:40:32,908
things in that area just kind of

3838
02:40:34,891 --> 02:40:35,141
scare me away right and so we

3839
02:40:36,391 --> 02:40:36,641
want to help even that playing

3840
02:40:38,391 --> 02:40:38,641
field out across the state and

3841
02:40:39,158 --> 02:40:39,408
kind of get some get some

3842
02:40:40,858 --> 02:40:41,108
guidelines out there that hey

3843
02:40:42,624 --> 02:40:42,874
this is kind of how we have to

3844
02:40:44,391 --> 02:40:44,641
do it so that's that's kind of

3845
02:40:45,158 --> 02:40:45,408
why it matters that's that's why

3846
02:40:46,924 --> 02:40:47,174
tech in a nutshell

3847
02:40:50,391 --> 02:40:50,641
the last one I have it on my

3848
02:40:51,024 --> 02:40:51,274
piece of paper so I'm gonna

3849
02:40:51,591 --> 02:40:51,841
bring it up

3850
02:40:53,158 --> 02:40:53,408
it does get very complicated

3851
02:40:54,891 --> 02:40:55,141
right this evaluation is very

3852
02:40:56,891 --> 02:40:57,141
complicated and I think as we

3853
02:40:58,391 --> 02:40:58,641
look at legislation or how can

3854
02:40:59,391 --> 02:40:59,641
we fix it one of the last things

3855
02:41:01,158 --> 02:41:01,408
I would look at is is light tech

3856
02:41:02,891 --> 02:41:03,141
is a little bit different than

3857
02:41:04,891 --> 02:41:05,141
open market and so sometimes

3858
02:41:06,391 --> 02:41:06,641
when we try to do the income

3859
02:41:08,658 --> 02:41:08,908
approach we say hey your rent is

3860
02:41:10,658 --> 02:41:10,908
you know $1000 a month and here

3861
02:41:11,258 --> 02:41:11,508
are your expenses but it's hard

3862
02:41:12,924 --> 02:41:13,174
to determine expenses so

3863
02:41:14,624 --> 02:41:14,874
sometimes we throw out an

3864
02:41:15,258 --> 02:41:15,508
expense multiplier while your

3865
02:41:17,191 --> 02:41:17,441
expenses are 35% of your income

3866
02:41:19,191 --> 02:41:19,441
that's a fairly common expense

3867
02:41:20,658 --> 02:41:20,908
multiplier number but one of the

3868
02:41:21,291 --> 02:41:21,541
problems we run into

3869
02:41:22,891 --> 02:41:23,141
in litech is that's the same

3870
02:41:24,391 --> 02:41:24,641
number that you would use in

3871
02:41:25,158 --> 02:41:25,408
open market so I gonna do a

3872
02:41:26,891 --> 02:41:27,141
little quick math for you. Hey

3873
02:41:28,391 --> 02:41:28,641
that's a beautiful apartment

3874
02:41:29,124 --> 02:41:29,374
complex and it should rent an

3875
02:41:31,224 --> 02:41:31,474
open market for $1500 a month so

3876
02:41:32,658 --> 02:41:32,908
we're gonna apply an expense

3877
02:41:34,924 --> 02:41:35,174
multiplier on there of 35% which

3878
02:41:36,924 --> 02:41:37,174
means your expenses are525

3879
02:41:38,924 --> 02:41:39,174
dollars you know a month

3880
02:41:39,424 --> 02:41:39,674
right it's what your expenses

3881
02:41:40,058 --> 02:41:40,308
should be

3882
02:41:42,658 --> 02:41:42,908
the exact same apartment complex

3883
02:41:45,091 --> 02:41:45,341
identical except it's li tech so

3884
02:41:46,658 --> 02:41:46,908
now the rent is $1000 a month

3885
02:41:47,324 --> 02:41:47,574
we're going to throw a 35%

3886
02:41:47,891 --> 02:41:48,141
multiplier on there

3887
02:41:50,891 --> 02:41:51,141
your expenses are only $350 a

3888
02:41:52,891 --> 02:41:53,141
month one is a guy who manages

3889
02:41:54,658 --> 02:41:54,908
about2,000 units of light tech

3890
02:41:56,391 --> 02:41:56,641
in the state of Oklahoma. I got

3891
02:41:57,091 --> 02:41:57,341
to tell you that sometimes our

3892
02:41:58,891 --> 02:41:59,141
tenants are a little bit more

3893
02:42:01,124 --> 02:42:01,374
difficult to work with or we

3894
02:42:03,358 --> 02:42:03,608
have more problems and so to

3895
02:42:04,891 --> 02:42:05,141
bring my extensive multiple to

3896
02:42:06,658 --> 02:42:06,908
bring my actual expenses down

3897
02:42:07,324 --> 02:42:07,574
because we're trying to assess

3898
02:42:08,958 --> 02:42:09,208
it the same way as we would

3899
02:42:09,524 --> 02:42:09,774
multifamily

3900
02:42:10,491 --> 02:42:10,741
is a problem

3901
02:42:13,091 --> 02:42:13,341
there are a lot of little

3902
02:42:14,624 --> 02:42:14,874
details like that that have to

3903
02:42:15,358 --> 02:42:15,608
get worked out but we've got

3904
02:42:16,424 --> 02:42:16,674
some great people much smarter

3905
02:42:18,391 --> 02:42:18,641
than I am on the process and I

3906
02:42:19,124 --> 02:42:19,374
think kind of if we could work

3907
02:42:20,858 --> 02:42:21,108
together with them we could find

3908
02:42:22,724 --> 02:42:22,974
something that helps developers

3909
02:42:23,424 --> 02:42:23,674
find consistency in the state

3910
02:42:24,024 --> 02:42:24,274
thank you

3911
02:42:26,891 --> 02:42:27,141
thank you so much that was very

3912
02:42:28,658 --> 02:42:28,908
helpful presentation appreciate

3913
02:42:30,391 --> 02:42:30,641
you being here today and for for

3914
02:42:31,324 --> 02:42:31,574
your investment in in Oklahoma

3915
02:42:33,124 --> 02:42:33,374
in this space.ex madam chair if

3916
02:42:34,624 --> 02:42:34,874
it's ok we'll move to Gary

3917
02:42:36,424 --> 02:42:36,674
Schnyder who's the director of

3918
02:42:37,124 --> 02:42:37,374
the Oklahoma State University

3919
02:42:38,858 --> 02:42:39,108
Center for Local Government and

3920
02:42:40,858 --> 02:42:41,108
Technology you'll give me just

3921
02:42:42,624 --> 02:42:42,874
one second. thank you for your

3922
02:42:44,891 --> 02:42:45,141
help on my bill I learned a lot

3923
02:42:46,891 --> 02:42:47,141
and I really do appreciate the

3924
02:42:48,658 --> 02:42:48,908
time that you took to make sure

3925
02:42:50,391 --> 02:42:50,641
that we got that right. Also if

3926
02:42:51,124 --> 02:42:51,374
you don't mind hitting your

3927
02:42:52,391 --> 02:42:52,641
button to turn your mic off

3928
02:42:53,024 --> 02:42:53,274
unless you want to stay on

3929
02:42:53,658 --> 02:42:53,908
camera you totally can. right

3930
02:42:54,291 --> 02:42:54,541
thank you

3931
02:42:56,458 --> 02:42:56,708
sorry about that but thank you

3932
02:42:57,124 --> 02:42:57,374
for your help I appreciate it.

3933
02:43:00,924 --> 02:43:01,174
madam chairman members senator

3934
02:43:01,624 --> 02:43:01,874
Fras thanks for the

3935
02:43:02,658 --> 02:43:02,908
invite.ppreciate that

3936
02:43:05,158 --> 02:43:05,408
folks my name is Gary

3937
02:43:06,658 --> 02:43:06,908
Schnyder is a slide says

3938
02:43:09,158 --> 02:43:09,408
and I am the director for the

3939
02:43:10,491 --> 02:43:10,741
Center for Local Government

3940
02:43:11,058 --> 02:43:11,308
Technology

3941
02:43:13,024 --> 02:43:13,274
I was a former county

3942
02:43:13,458 --> 02:43:13,708
assessor

3943
02:43:17,158 --> 02:43:17,408
I worked in the county for a

3944
02:43:18,858 --> 02:43:19,108
period of eight years and of

3945
02:43:20,624 --> 02:43:20,874
those eight years I served as a

3946
02:43:22,391 --> 02:43:22,641
county cessor before I had the

3947
02:43:23,124 --> 02:43:23,374
opportunity to go over to OSU

3948
02:43:25,124 --> 02:43:25,374
and work in the training program

3949
02:43:25,858 --> 02:43:26,108
for county assessors and

3950
02:43:26,391 --> 02:43:26,641
deputies

3951
02:43:30,658 --> 02:43:30,908
my assistant director carried on

3952
02:43:32,891 --> 02:43:33,141
Skidmore she's not be able to be

3953
02:43:34,624 --> 02:43:34,874
with us today. she would like to

3954
02:43:36,391 --> 02:43:36,641
but she had a previous

3955
02:43:36,924 --> 02:43:37,174
engagement and

3956
02:43:40,358 --> 02:43:40,608
both of us have some letters

3957
02:43:41,091 --> 02:43:41,341
behind our name and I want you

3958
02:43:42,624 --> 02:43:42,874
to just remember those because

3959
02:43:43,324 --> 02:43:43,574
I'm going to cover that at the

3960
02:43:43,991 --> 02:43:44,241
end of this presentation.

3961
02:43:47,324 --> 02:43:47,574
the center

3962
02:43:49,191 --> 02:43:49,441
our vision for the center

3963
02:43:51,158 --> 02:43:51,408
is for

3964
02:43:55,124 --> 02:43:55,374
we aim to be recognized

3965
02:43:56,891 --> 02:43:57,141
authority in providing extension

3966
02:43:58,591 --> 02:43:58,841
programs and services to our

3967
02:44:00,358 --> 02:44:00,608
customers which positively

3968
02:44:00,924 --> 02:44:01,174
impact their outputs

3969
02:44:02,624 --> 02:44:02,874
we our mission

3970
02:44:06,858 --> 02:44:07,108
is to provide quality extension

3971
02:44:08,624 --> 02:44:08,874
programs and services including

3972
02:44:10,658 --> 02:44:10,908
certification and accreditation

3973
02:44:12,624 --> 02:44:12,874
that promote professionalism and

3974
02:44:14,624 --> 02:44:14,874
efficiency for state and local

3975
02:44:16,624 --> 02:44:16,874
entities plus other public and

3976
02:44:17,324 --> 02:44:17,574
private clients

3977
02:44:22,924 --> 02:44:23,174
Oklahoma State University is a

3978
02:44:23,591 --> 02:44:23,841
land grant university

3979
02:44:28,358 --> 02:44:28,608
actcting under two acts federal

3980
02:44:30,658 --> 02:44:30,908
acts 1862 Moral Act in the 1887

3981
02:44:31,324 --> 02:44:31,574
Hatch Act

3982
02:44:34,624 --> 02:44:34,874
c l G T Center for Local

3983
02:44:35,191 --> 02:44:35,441
Government we we've got a lot of

3984
02:44:39,124 --> 02:44:39,374
acronyms too and umclGt is short

3985
02:44:39,791 --> 02:44:40,041
for the center

3986
02:44:43,358 --> 02:44:43,608
we are a unit of the OSU

3987
02:44:44,624 --> 02:44:44,874
College of Engineering

3988
02:44:45,091 --> 02:44:45,341
architecture and Technology

3989
02:44:48,624 --> 02:44:48,874
and when I went to work first

3990
02:44:50,858 --> 02:44:51,108
went over to OSU to work I

3991
02:44:52,658 --> 02:44:52,908
couldn't understand why that

3992
02:44:53,358 --> 02:44:53,608
unit was part of the engineering

3993
02:44:54,991 --> 02:44:55,241
college and I'll I'll explain

3994
02:44:55,658 --> 02:44:55,908
that here in a little bit

3995
02:44:58,858 --> 02:44:59,108
to meet our mission we function

3996
02:44:59,524 --> 02:44:59,774
under a three legged stool

3997
02:45:00,058 --> 02:45:00,308
concept

3998
02:45:02,624 --> 02:45:02,874
teaching research and extension

3999
02:45:08,358 --> 02:45:08,608
the the teaching part which

4000
02:45:08,991 --> 02:45:09,241
is the moral act

4001
02:45:10,658 --> 02:45:10,908
states that

4002
02:45:14,424 --> 02:45:14,674
educating students on campus

4003
02:45:15,124 --> 02:45:15,374
through degree programs

4004
02:45:16,624 --> 02:45:16,874
professional training and

4005
02:45:18,658 --> 02:45:18,908
practical knowledge in fields

4006
02:45:19,324 --> 02:45:19,574
like agriculture, engineering

4007
02:45:19,991 --> 02:45:20,241
and the arts

4008
02:45:23,058 --> 02:45:23,308
The Hatch Act deals with

4009
02:45:28,391 --> 02:45:28,641
the research part discovering

4010
02:45:30,391 --> 02:45:30,641
new science creating innovations

4011
02:45:32,391 --> 02:45:32,641
and solving real world problems

4012
02:45:33,091 --> 02:45:33,341
through advanced laboratory and

4013
02:45:33,758 --> 02:45:34,008
field studies

4014
02:45:36,924 --> 02:45:37,174
and that leaves the third part

4015
02:45:37,591 --> 02:45:37,841
of the stool extension

4016
02:45:40,424 --> 02:45:40,674
taking the research back

4017
02:45:40,924 --> 02:45:41,174
discoveries made at the

4018
02:45:42,658 --> 02:45:42,908
university ensuring them

4019
02:45:44,891 --> 02:45:45,141
directly with citizens farmers

4020
02:45:46,991 --> 02:45:47,241
businesses and the youth of the

4021
02:45:47,658 --> 02:45:47,908
state of Oklahoma

4022
02:45:51,124 --> 02:45:51,374
OSU meets that responsibility of

4023
02:45:53,091 --> 02:45:53,341
being a land grant university

4024
02:45:56,424 --> 02:45:56,674
inclGt meets that as part of an

4025
02:45:57,091 --> 02:45:57,341
extension unit out of the

4026
02:45:57,624 --> 02:45:57,874
college

4027
02:46:00,891 --> 02:46:01,141
so current our current status

4028
02:46:02,891 --> 02:46:03,141
status of theclGT programs we

4029
02:46:04,458 --> 02:46:04,708
have three areas that we focus

4030
02:46:05,124 --> 02:46:05,374
on

4031
02:46:08,624 --> 02:46:08,874
one is the assessor training and

4032
02:46:09,424 --> 02:46:09,674
accreditation program and

4033
02:46:09,958 --> 02:46:10,208
there's that acronym

4034
02:46:13,124 --> 02:46:13,374
that consists of seven courses

4035
02:46:15,124 --> 02:46:15,374
124ur hours in the classroom

4036
02:46:19,158 --> 02:46:19,408
and required successful testing

4037
02:46:21,124 --> 02:46:21,374
after each course and then

4038
02:46:22,891 --> 02:46:23,141
completion of accreditation

4039
02:46:24,891 --> 02:46:25,141
requires 30 hours of continuing

4040
02:46:25,524 --> 02:46:25,774
education units over a three

4041
02:46:26,191 --> 02:46:26,441
year period

4042
02:46:28,891 --> 02:46:29,141
the second area that we

4043
02:46:30,624 --> 02:46:30,874
concentrate on training is the

4044
02:46:31,391 --> 02:46:31,641
boardard of equalization members

4045
02:46:34,424 --> 02:46:34,674
which are the three board three

4046
02:46:36,391 --> 02:46:36,641
members that hear the

4047
02:46:38,391 --> 02:46:38,641
protests of property evaluations

4048
02:46:40,658 --> 02:46:40,908
they have a six hour initial

4049
02:46:42,924 --> 02:46:43,174
training requirement and then

4050
02:46:44,424 --> 02:46:44,674
they have a three hour

4051
02:46:44,891 --> 02:46:45,141
continuing education requirement

4052
02:46:45,524 --> 02:46:45,774
each year

4053
02:46:48,391 --> 02:46:48,641
both of these programs were

4054
02:46:48,991 --> 02:46:49,241
established in 1988 legislation

4055
02:46:52,624 --> 02:46:52,874
the boardard of the equalization

4056
02:46:54,391 --> 02:46:54,641
training excuse me has kind of

4057
02:46:55,091 --> 02:46:55,341
changed over the over the course

4058
02:46:58,391 --> 02:46:58,641
of that time frame but that is

4059
02:46:59,091 --> 02:46:59,341
the current status of that of

4060
02:47:01,191 --> 02:47:01,441
that prop of that training that

4061
02:47:01,858 --> 02:47:02,108
we do for that board members

4062
02:47:04,858 --> 02:47:05,108
the equalization boardard

4063
02:47:06,858 --> 02:47:07,108
members are also they also serve

4064
02:47:08,624 --> 02:47:08,874
on is known as the excise

4065
02:47:10,891 --> 02:47:11,141
boardard and that training has

4066
02:47:12,858 --> 02:47:13,108
the same requirements only the

4067
02:47:14,391 --> 02:47:14,641
cooperative extension service

4068
02:47:14,991 --> 02:47:15,241
over in the agg collegelege

4069
02:47:16,391 --> 02:47:16,641
provides that training for the

4070
02:47:18,658 --> 02:47:18,908
excise board members so three

4071
02:47:19,324 --> 02:47:19,574
members

4072
02:47:21,391 --> 02:47:21,641
two different functions two

4073
02:47:22,891 --> 02:47:23,141
different boards boardard of

4074
02:47:24,891 --> 02:47:25,141
equalization deals with values

4075
02:47:26,858 --> 02:47:27,108
the excise boardard deals with

4076
02:47:27,524 --> 02:47:27,774
finances of the county

4077
02:47:30,891 --> 02:47:31,141
the third area that we provide

4078
02:47:32,591 --> 02:47:32,841
training and support on is

4079
02:47:33,191 --> 02:47:33,441
called the computers assisted

4080
02:47:34,658 --> 02:47:34,908
mass appraisal or the CAA

4081
02:47:35,224 --> 02:47:35,474
program

4082
02:47:38,858 --> 02:47:39,108
2018 legislated legislation

4083
02:47:40,858 --> 02:47:41,108
mandated forclGT to offer a new

4084
02:47:42,624 --> 02:47:42,874
GIS appraisal software package.

4085
02:47:46,858 --> 02:47:47,108
appraisal software we support

4086
02:47:48,858 --> 02:47:49,108
the software the appraisal

4087
02:47:51,091 --> 02:47:51,341
methodology we also include IT

4088
02:47:53,091 --> 02:47:53,341
services and support to counties

4089
02:47:53,824 --> 02:47:54,074
that don't have an IT department

4090
02:47:57,124 --> 02:47:57,374
we currently have68 counties

4091
02:47:58,624 --> 02:47:58,874
utilizing our sponsored software

4092
02:47:59,291 --> 02:47:59,541
package

4093
02:48:02,391 --> 02:48:02,641
we offer support training and

4094
02:48:04,491 --> 02:48:04,741
assistance to all77 counties

4095
02:48:05,058 --> 02:48:05,308
upon request.

4096
02:48:10,891 --> 02:48:11,141
are beginning we started in 1972

4097
02:48:13,124 --> 02:48:13,374
the birth ofclGt was by Do Jim

4098
02:48:14,691 --> 02:48:14,941
Chamblin. he was out of the

4099
02:48:15,258 --> 02:48:15,508
engineering college

4100
02:48:18,391 --> 02:48:18,641
and he wanted to mimic what was

4101
02:48:19,091 --> 02:48:19,341
going on over in the extension

4102
02:48:20,824 --> 02:48:21,074
over in the extension program in

4103
02:48:22,624 --> 02:48:22,874
the ag collegelege so he

4104
02:48:23,324 --> 02:48:23,574
developed a partnership with the

4105
02:48:24,858 --> 02:48:25,108
cooperative extensionervice to

4106
02:48:26,491 --> 02:48:26,741
provide training to local units

4107
02:48:27,158 --> 02:48:27,408
of government

4108
02:48:30,658 --> 02:48:30,908
they they concentrated on county

4109
02:48:32,391 --> 02:48:32,641
clerks county treasurers and

4110
02:48:34,658 --> 02:48:34,908
county commissioners in 1982 the

4111
02:48:37,191 --> 02:48:37,441
legisl legislator reached out to

4112
02:48:38,858 --> 02:48:39,108
the doctor Shamlin and asked if

4113
02:48:42,391 --> 02:48:42,641
he would help implement and

4114
02:48:43,024 --> 02:48:43,274
produce county purchasing

4115
02:48:43,558 --> 02:48:43,808
handbook

4116
02:48:46,358 --> 02:48:46,608
to honor the county purchasing

4117
02:48:47,058 --> 02:48:47,308
actct that was established

4118
02:48:49,158 --> 02:48:49,408
as a result of some

4119
02:48:53,124 --> 02:48:53,374
unfavorable business practices

4120
02:48:53,791 --> 02:48:54,041
of county commissioners

4121
02:48:56,858 --> 02:48:57,108
that county purchasing actct

4122
02:48:58,658 --> 02:48:58,908
is still in place it is

4123
02:49:00,358 --> 02:49:00,608
administered now the training on

4124
02:49:01,024 --> 02:49:01,274
that is administered by the

4125
02:49:03,191 --> 02:49:03,441
Ag extensionroup over in the

4126
02:49:03,758 --> 02:49:04,008
collegelege of that

4127
02:49:07,358 --> 02:49:07,608
1988 legislation House Bill1750

4128
02:49:11,358 --> 02:49:11,608
introduced accreditation

4129
02:49:12,891 --> 02:49:13,141
program introduce training for

4130
02:49:13,524 --> 02:49:13,774
county ancestors and deputies

4131
02:49:16,891 --> 02:49:17,141
ri or to that mandatory training

4132
02:49:20,658 --> 02:49:20,908
you learned from the person

4133
02:49:22,424 --> 02:49:22,674
you were going to replace in the

4134
02:49:23,158 --> 02:49:23,408
assessor's office whether it

4135
02:49:24,458 --> 02:49:24,708
was right, wrong or indifferent

4136
02:49:27,158 --> 02:49:27,408
and the assessors association

4137
02:49:29,124 --> 02:49:29,374
really courted the legislature

4138
02:49:31,124 --> 02:49:31,374
to enact some type of mandatory

4139
02:49:32,491 --> 02:49:32,741
training for county assessors

4140
02:49:35,124 --> 02:49:35,374
the first accreditation class

4141
02:49:36,891 --> 02:49:37,141
was delivered in September of

4142
02:49:38,958 --> 02:49:39,208
1989 and we've been doing that

4143
02:49:39,624 --> 02:49:39,874
ever since

4144
02:49:42,891 --> 02:49:43,141
also in that bill

4145
02:49:44,624 --> 02:49:44,874
computerization of assessor of

4146
02:49:46,724 --> 02:49:46,974
assessing officers who was

4147
02:49:47,291 --> 02:49:47,541
enacted

4148
02:49:51,091 --> 02:49:51,341
prior to that the assessment

4149
02:49:52,924 --> 02:49:53,174
role and the tax roll both those

4150
02:49:53,591 --> 02:49:53,841
documents were handwritten

4151
02:49:57,124 --> 02:49:57,374
each year and so I was never

4152
02:49:58,658 --> 02:49:58,908
able to work in the assessor's

4153
02:49:59,358 --> 02:49:59,608
office because I didn't have

4154
02:50:00,858 --> 02:50:01,108
good handwriting at that time

4155
02:50:03,124 --> 02:50:03,374
but the computerization was

4156
02:50:04,858 --> 02:50:05,108
really important both of those

4157
02:50:06,658 --> 02:50:06,908
documents were produced with a

4158
02:50:09,358 --> 02:50:09,608
with a pc a personal computer at

4159
02:50:11,191 --> 02:50:11,441
that time during the 91990s is

4160
02:50:12,491 --> 02:50:12,741
when that actually came to play

4161
02:50:16,624 --> 02:50:16,874
computerization of mapping prior

4162
02:50:17,358 --> 02:50:17,608
to that you know everybody was

4163
02:50:17,991 --> 02:50:18,241
mapping on a piece of paper

4164
02:50:21,324 --> 02:50:21,574
but a digital computerization

4165
02:50:23,091 --> 02:50:23,341
software was introduced again

4166
02:50:24,891 --> 02:50:25,141
you could map on a personal

4167
02:50:25,424 --> 02:50:25,674
computer and on a Pc

4168
02:50:28,891 --> 02:50:29,141
the introduction of the

4169
02:50:30,658 --> 02:50:30,908
computersisted mass appraisal

4170
02:50:31,258 --> 02:50:31,508
project was also at this time

4171
02:50:34,658 --> 02:50:34,908
and the acronym canna that

4172
02:50:35,224 --> 02:50:35,474
definition it has two

4173
02:50:38,391 --> 02:50:38,641
definitions to it one it's a

4174
02:50:40,391 --> 02:50:40,641
methodology of appraising a lot

4175
02:50:41,124 --> 02:50:41,374
of properties in a very short

4176
02:50:42,891 --> 02:50:43,141
period of time in Oklahoma we

4177
02:50:44,624 --> 02:50:44,874
have the annual valuations so

4178
02:50:47,091 --> 02:50:47,341
every January the assessor has

4179
02:50:48,891 --> 02:50:49,141
to place a new place a value or

4180
02:50:50,891 --> 02:50:51,141
at least adjust the value both

4181
02:50:52,891 --> 02:50:53,141
on real property and tangible

4182
02:50:54,458 --> 02:50:54,708
personal property that's subject

4183
02:50:55,124 --> 02:50:55,374
to add alarm taxation

4184
02:50:58,391 --> 02:50:58,641
A A also means it's a software

4185
02:51:00,391 --> 02:51:00,641
package to help you do that it's

4186
02:51:01,391 --> 02:51:01,641
strictly a tool to help you

4187
02:51:04,391 --> 02:51:04,641
effectively generate a number

4188
02:51:06,391 --> 02:51:06,641
that hopefully reflects fair

4189
02:51:06,991 --> 02:51:07,241
market value according to the

4190
02:51:07,658 --> 02:51:07,908
constitution

4191
02:51:12,891 --> 02:51:13,141
and again this this this

4192
02:51:14,391 --> 02:51:14,641
bill during this time there was

4193
02:51:16,491 --> 02:51:16,741
a complete rewrite of Title68,

4194
02:51:17,158 --> 02:51:17,408
the revenue and tax title

4195
02:51:20,624 --> 02:51:20,874
title Article28 replaced

4196
02:51:22,624 --> 02:51:22,874
Article24 at the time and it

4197
02:51:23,391 --> 02:51:23,641
deals mainly with avaloum issues

4198
02:51:32,391 --> 02:51:32,641
In2006clGt and the

4199
02:51:32,858 --> 02:51:33,108
Oklahomaarative extension

4200
02:51:33,458 --> 02:51:33,708
Service partnership dissolved

4201
02:51:35,258 --> 02:51:35,508
and the

4202
02:51:40,391 --> 02:51:40,641
theclGT retained the training

4203
02:51:41,258 --> 02:51:41,508
for the assessors and the

4204
02:51:41,824 --> 02:51:42,074
boardard of the equalization

4205
02:51:42,491 --> 02:51:42,741
members

4206
02:51:46,391 --> 02:51:46,641
the other mandatory training is

4207
02:51:47,024 --> 02:51:47,274
still conducted by the

4208
02:51:48,624 --> 02:51:48,874
cooperative extensioner for all

4209
02:51:50,924 --> 02:51:51,174
the other elected offices

4210
02:51:53,224 --> 02:51:53,474
assessors and sheriffs may

4211
02:51:54,658 --> 02:51:54,908
attend the training offered by

4212
02:51:56,691 --> 02:51:56,941
the corpo of the extensionervice

4213
02:51:58,658 --> 02:51:58,908
how it's not a shall because we

4214
02:52:00,358 --> 02:52:00,608
the both of those entities have

4215
02:52:00,991 --> 02:52:01,241
obligated mandatory training

4216
02:52:05,324 --> 02:52:05,574
in2008 the state auditor and

4217
02:52:08,391 --> 02:52:08,641
inspector at the time during

4218
02:52:11,158 --> 02:52:11,408
that 1988 iv reconstruction

4219
02:52:14,358 --> 02:52:14,608
of the legislation state auditor

4220
02:52:16,624 --> 02:52:16,874
was providing IT services to

4221
02:52:17,224 --> 02:52:17,474
counties that didn't have an IT

4222
02:52:17,891 --> 02:52:18,141
department

4223
02:52:20,424 --> 02:52:20,674
and the auditor at the time

4224
02:52:21,224 --> 02:52:21,474
wanted to be relieved of those

4225
02:52:22,858 --> 02:52:23,108
duties and ask if we would take

4226
02:52:25,124 --> 02:52:25,374
that on and so the computer

4227
02:52:26,891 --> 02:52:27,141
county computer unit was moved

4228
02:52:27,558 --> 02:52:27,808
toclGT.

4229
02:52:30,491 --> 02:52:30,741
we still provide that service on

4230
02:52:31,158 --> 02:52:31,408
we did it through a contractor

4231
02:52:31,791 --> 02:52:32,041
now.

4232
02:52:34,624 --> 02:52:34,874
in2018 the came bill House

4233
02:52:35,391 --> 02:52:35,641
Bill3372 was approved

4234
02:52:38,458 --> 02:52:38,708
by by governor Fallon

4235
02:52:41,491 --> 02:52:41,741
and it ordered us to implement

4236
02:52:44,658 --> 02:52:44,908
an OSUclGt camera system we went

4237
02:52:46,391 --> 02:52:46,641
out and looked for a new chemist

4238
02:52:48,691 --> 02:52:48,941
system GISba cheva system the

4239
02:52:49,291 --> 02:52:49,541
one that was installed in the

4240
02:52:51,191 --> 02:52:51,441
early 90s was administered by

4241
02:52:52,858 --> 02:52:53,108
the Oklahoma Tax Commission ad

4242
02:52:53,524 --> 02:52:53,774
alarm division

4243
02:52:55,124 --> 02:52:55,374
and it was time to get a new

4244
02:52:56,891 --> 02:52:57,141
one. It was26 years old at the

4245
02:52:58,858 --> 02:52:59,108
time and so we went through the

4246
02:53:00,991 --> 02:53:01,241
purchasing process at OSU and we

4247
02:53:01,658 --> 02:53:01,908
secured a new chemist system

4248
02:53:06,391 --> 02:53:06,641
so end of the programs now what

4249
02:53:07,091 --> 02:53:07,341
do we do in the in the AapP

4250
02:53:09,091 --> 02:53:09,341
program we provide the statutory

4251
02:53:10,891 --> 02:53:11,141
statutory required initial and

4252
02:53:12,658 --> 02:53:12,908
advanced accreditation provide

4253
02:53:14,424 --> 02:53:14,674
technical assistance to county

4254
02:53:16,691 --> 02:53:16,941
assessor's deputies and initial

4255
02:53:17,324 --> 02:53:17,574
and continuing education to

4256
02:53:17,924 --> 02:53:18,174
equalization board members

4257
02:53:21,491 --> 02:53:21,741
the essential training program

4258
02:53:24,491 --> 02:53:24,741
is comprised of seven units

4259
02:53:28,391 --> 02:53:28,641
there's forts full4 full time

4260
02:53:29,091 --> 02:53:29,341
instructors that work in the

4261
02:53:29,758 --> 02:53:30,008
program

4262
02:53:32,891 --> 02:53:33,141
the units the topics are

4263
02:53:33,358 --> 02:53:33,608
defined in the statute what are

4264
02:53:34,024 --> 02:53:34,274
we to teach

4265
02:53:36,858 --> 02:53:37,108
unit one and two when you

4266
02:53:38,391 --> 02:53:38,641
successfully complete those and

4267
02:53:40,391 --> 02:53:40,641
when say successfully each

4268
02:53:41,358 --> 02:53:41,608
course has a mandatory

4269
02:53:42,924 --> 02:53:43,174
testing at the end of the course

4270
02:53:44,891 --> 02:53:45,141
each of the seven courses has a

4271
02:53:46,858 --> 02:53:47,108
fi0 question test and you have

4272
02:53:48,724 --> 02:53:48,974
to make a70% in order to

4273
02:53:49,258 --> 02:53:49,508
consider pass

4274
02:53:52,391 --> 02:53:52,641
so unit one is an introduction

4275
02:53:54,391 --> 02:53:54,641
to the assessor's office

4276
02:53:55,358 --> 02:53:55,608
how do you how do you interact

4277
02:53:56,924 --> 02:53:57,174
with the other offices in the

4278
02:53:58,424 --> 02:53:58,674
courthouse what are your duties

4279
02:53:59,058 --> 02:53:59,308
what are your responsibilities

4280
02:54:02,391 --> 02:54:02,641
unit two is where we start

4281
02:54:03,091 --> 02:54:03,341
introducing the approaches to

4282
02:54:06,391 --> 02:54:06,641
value that was covered recently

4283
02:54:08,391 --> 02:54:08,641
in in real property appraisal we

4284
02:54:09,058 --> 02:54:09,308
introduced the cost approach was

4285
02:54:09,724 --> 02:54:09,974
the cost to build it

4286
02:54:12,391 --> 02:54:12,641
and the sales comparison

4287
02:54:12,891 --> 02:54:13,141
approach the market approach

4288
02:54:14,658 --> 02:54:14,908
properties that have sold we use

4289
02:54:15,358 --> 02:54:15,608
that information to appraise

4290
02:54:16,024 --> 02:54:16,274
properties that have not sold

4291
02:54:18,924 --> 02:54:19,174
Once you successfully complete

4292
02:54:20,424 --> 02:54:20,674
that then the tax commission

4293
02:54:22,658 --> 02:54:22,908
will initiate will offer you

4294
02:54:23,258 --> 02:54:23,508
an initial accreditation

4295
02:54:23,791 --> 02:54:24,041
certificate

4296
02:54:26,891 --> 02:54:27,141
then we go into the other

4297
02:54:29,124 --> 02:54:29,374
courses unit 3 we talk about

4298
02:54:30,891 --> 02:54:31,141
mass appraisal that's how do you

4299
02:54:31,624 --> 02:54:31,874
appraise all those properties in

4300
02:54:32,891 --> 02:54:33,141
that very short period of time

4301
02:54:35,158 --> 02:54:35,408
unit four is the third approach

4302
02:54:35,858 --> 02:54:36,108
to value the income approach.

4303
02:54:38,924 --> 02:54:39,174
Unitive how do you value your

4304
02:54:41,158 --> 02:54:41,408
personal property unit6 cadatral

4305
02:54:42,924 --> 02:54:43,174
mapping that's just a fancy word

4306
02:54:44,891 --> 02:54:45,141
for producing a tax map and then

4307
02:54:46,924 --> 02:54:47,174
unit se is unique to Oklahohoma.

4308
02:54:47,591 --> 02:54:47,841
how do you value your

4309
02:54:49,158 --> 02:54:49,408
agricultural land so unit one

4310
02:54:51,158 --> 02:54:51,408
and unit7 are unique to Oklahoma

4311
02:54:54,658 --> 02:54:54,908
but the other five2 through6 are

4312
02:54:56,891 --> 02:54:57,141
standard appraisal courses that

4313
02:54:58,891 --> 02:54:59,141
are patterned after our

4314
02:54:59,424 --> 02:54:59,674
professional organization that

4315
02:55:00,491 --> 02:55:00,741
I'll discuss here at the end

4316
02:55:04,391 --> 02:55:04,641
oncece you receive that

4317
02:55:04,858 --> 02:55:05,108
advanced accreditation and you

4318
02:55:06,624 --> 02:55:06,874
have a continuing education

4319
02:55:08,391 --> 02:55:08,641
requirement beginning the

4320
02:55:08,924 --> 02:55:09,174
January once you complete the

4321
02:55:09,591 --> 02:55:09,841
courses

4322
02:55:12,624 --> 02:55:12,874
eachach course or the all the

4323
02:55:13,291 --> 02:55:13,541
courses are anywhere from one

4324
02:55:16,391 --> 02:55:16,641
day to one day of the test and

4325
02:55:17,124 --> 02:55:17,374
then from three full days of

4326
02:55:18,891 --> 02:55:19,141
instruction to the following

4327
02:55:19,458 --> 02:55:19,708
fourth day with an exam

4328
02:55:23,124 --> 02:55:23,374
that consists of 124 hours

4329
02:55:24,624 --> 02:55:24,874
sitting in the classroom that

4330
02:55:26,624 --> 02:55:26,874
doesn't count nights weekends

4331
02:55:27,358 --> 02:55:27,608
and other other times that you

4332
02:55:28,491 --> 02:55:28,741
might need to prepare for that

4333
02:55:29,158 --> 02:55:29,408
exam.

4334
02:55:32,658 --> 02:55:32,908
The interesting part about

4335
02:55:36,358 --> 02:55:36,608
this we have a wide range of

4336
02:55:38,624 --> 02:55:38,874
folks that attend these courses

4337
02:55:39,291 --> 02:55:39,541
currently we're we're teaching

4338
02:55:42,691 --> 02:55:42,941
here in the Oklahoma City

4339
02:55:43,258 --> 02:55:43,508
metropolitan area

4340
02:55:44,858 --> 02:55:45,108
we're gonna be doing unit 3 next

4341
02:55:45,524 --> 02:55:45,774
week

4342
02:55:50,858 --> 02:55:51,108
in unit two we had students call

4343
02:55:52,591 --> 02:55:52,841
them students I got stop that

4344
02:55:54,591 --> 02:55:54,841
it's called learners now to be

4345
02:55:56,858 --> 02:55:57,108
politically correct we had

4346
02:55:57,458 --> 02:55:57,708
learners that just graduated

4347
02:55:58,124 --> 02:55:58,374
from high school in May

4348
02:56:01,324 --> 02:56:01,574
and we have season or senior

4349
02:56:02,858 --> 02:56:03,108
folks that haven't been in the

4350
02:56:04,591 --> 02:56:04,841
classroom for years haven't

4351
02:56:06,858 --> 02:56:07,108
taken a test in a while and so

4352
02:56:08,591 --> 02:56:08,841
our responsibility is to see

4353
02:56:10,624 --> 02:56:10,874
that everybody's successful but

4354
02:56:12,358 --> 02:56:12,608
we can only do so much as

4355
02:56:14,391 --> 02:56:14,641
instructors and so we take a lot

4356
02:56:16,391 --> 02:56:16,641
of time and effort to make sure

4357
02:56:18,391 --> 02:56:18,641
that they are successful. not

4358
02:56:20,391 --> 02:56:20,641
everybody is not everybody is

4359
02:56:21,124 --> 02:56:21,374
successful and so that's

4360
02:56:23,124 --> 02:56:23,374
unfortunate but you know we

4361
02:56:24,624 --> 02:56:24,874
do our best to see that

4362
02:56:25,358 --> 02:56:25,608
everybody has an opportunity to

4363
02:56:26,058 --> 02:56:26,308
be successful

4364
02:56:30,124 --> 02:56:30,374
in addition the county

4365
02:56:30,624 --> 02:56:30,874
boardard of equalization

4366
02:56:32,424 --> 02:56:32,674
training these are the folks

4367
02:56:33,191 --> 02:56:33,441
that hear the protests on the

4368
02:56:33,791 --> 02:56:34,041
evaluation process

4369
02:56:37,324 --> 02:56:37,574
the statute authorizesclGt to

4370
02:56:38,624 --> 02:56:38,874
develop and conduct the

4371
02:56:40,391 --> 02:56:40,641
mandatory training for the board

4372
02:56:42,391 --> 02:56:42,641
members within 12 months of

4373
02:56:44,391 --> 02:56:44,641
their appointment to the board

4374
02:56:46,358 --> 02:56:46,608
that's a sixhour training event

4375
02:56:48,591 --> 02:56:48,841
and then upon completion of that

4376
02:56:50,424 --> 02:56:50,674
they have a three hourur annual

4377
02:56:52,858 --> 02:56:53,108
continuation credit. We offer

4378
02:56:54,658 --> 02:56:54,908
the opportunity for those board

4379
02:56:56,391 --> 02:56:56,641
members to attend some of those

4380
02:56:57,158 --> 02:56:57,408
seven accreditation units if

4381
02:56:58,891 --> 02:56:59,141
they want to to get those three

4382
02:57:00,891 --> 02:57:01,141
hours but they can also attend

4383
02:57:02,491 --> 02:57:02,741
the the boardard of equalization

4384
02:57:03,124 --> 02:57:03,374
training that we're offering

4385
02:57:03,791 --> 02:57:04,041
also

4386
02:57:08,858 --> 02:57:09,108
Here's what we cover in that we

4387
02:57:10,391 --> 02:57:10,641
talk about the duties of the

4388
02:57:11,091 --> 02:57:11,341
board we talk about the open

4389
02:57:13,158 --> 02:57:13,408
meetings open records actct we

4390
02:57:14,891 --> 02:57:15,141
talk about the appraisal process

4391
02:57:17,124 --> 02:57:17,374
the assessment process we spent

4392
02:57:18,424 --> 02:57:18,674
a lot of time on the appeals

4393
02:57:19,224 --> 02:57:19,474
process and we talk about some

4394
02:57:21,158 --> 02:57:21,408
practical practical examples

4395
02:57:24,391 --> 02:57:24,641
such as caps and freezes and

4396
02:57:25,391 --> 02:57:25,641
senior freezes and and senior

4397
02:57:26,058 --> 02:57:26,308
veterans

4398
02:57:28,924 --> 02:57:29,174
exemptions and so on how does

4399
02:57:30,658 --> 02:57:30,908
that affect the appraisal

4400
02:57:32,624 --> 02:57:32,874
process that's been a very

4401
02:57:34,658 --> 02:57:34,908
rewarding process we spent about

4402
02:57:36,424 --> 02:57:36,674
an hour talking about that

4403
02:57:37,191 --> 02:57:37,441
practical examples that those

4404
02:57:38,491 --> 02:57:38,741
board members are going to

4405
02:57:39,058 --> 02:57:39,308
encounter

4406
02:57:42,624 --> 02:57:42,874
d d ition al training courses

4407
02:57:43,324 --> 02:57:43,574
that we've done over the years

4408
02:57:44,691 --> 02:57:44,941
the most popular right now is

4409
02:57:46,691 --> 02:57:46,941
data collection and data entry

4410
02:57:47,391 --> 02:57:47,641
both for residential and

4411
02:57:48,924 --> 02:57:49,174
commercial properties we're

4412
02:57:50,658 --> 02:57:50,908
bringing our learners into our

4413
02:57:52,391 --> 02:57:52,641
classroom in Stillwater we take

4414
02:57:54,391 --> 02:57:54,641
them out into the field we teach

4415
02:57:55,124 --> 02:57:55,374
them what information you are to

4416
02:57:56,658 --> 02:57:56,908
collect and then we wind up back

4417
02:57:58,691 --> 02:57:58,941
in the computer lab on entering

4418
02:58:00,424 --> 02:58:00,674
that information into the cheva

4419
02:58:01,124 --> 02:58:01,374
system to see how the numbers

4420
02:58:01,791 --> 02:58:02,041
are different

4421
02:58:04,658 --> 02:58:04,908
we've we've offered excel in the

4422
02:58:06,658 --> 02:58:06,908
past we've taken we've done some

4423
02:58:07,358 --> 02:58:07,608
advanced income training that's

4424
02:58:08,891 --> 02:58:09,141
a step up from our unit for

4425
02:58:09,458 --> 02:58:09,708
income approach

4426
02:58:12,391 --> 02:58:12,641
we we've done deeds and sales

4427
02:58:14,858 --> 02:58:15,108
analysis in fact last week

4428
02:58:15,458 --> 02:58:15,708
we've gone to some four hour

4429
02:58:16,891 --> 02:58:17,141
workshops around the state where

4430
02:58:18,891 --> 02:58:19,141
in the morning last week we

4431
02:58:20,391 --> 02:58:20,641
talked about deeds and then in

4432
02:58:21,191 --> 02:58:21,441
the afternoon we talked about

4433
02:58:22,658 --> 02:58:22,908
how do you analyze that

4434
02:58:23,424 --> 02:58:23,674
information to determine what's

4435
02:58:24,091 --> 02:58:24,341
going on in the marketplace

4436
02:58:26,891 --> 02:58:27,141
manufactured homes is always a

4437
02:58:29,124 --> 02:58:29,374
popular topic to talk about you

4438
02:58:30,858 --> 02:58:31,108
know get ready to move and you

4439
02:58:32,891 --> 02:58:33,141
got to have a form and you know

4440
02:58:33,591 --> 02:58:33,841
sometimes that farm's not in

4441
02:58:35,124 --> 02:58:35,374
place and it's just kind of a

4442
02:58:36,891 --> 02:58:37,141
convoluted process but we've

4443
02:58:38,691 --> 02:58:38,941
been successful at at teaching

4444
02:58:39,358 --> 02:58:39,608
how to do that

4445
02:58:41,124 --> 02:58:41,374
manyy storage evaluation we've

4446
02:58:42,658 --> 02:58:42,908
done some basic math in the in

4447
02:58:44,658 --> 02:58:44,908
the past apartments convenience

4448
02:58:46,391 --> 02:58:46,641
stores of course we're always

4449
02:58:46,991 --> 02:58:47,241
talking about the cheva system

4450
02:58:48,391 --> 02:58:48,641
and how do you how do you

4451
02:58:49,158 --> 02:58:49,408
analyze that information in that

4452
02:58:51,158 --> 02:58:51,408
system visual inspection plan

4453
02:58:52,924 --> 02:58:53,174
and a budget for that and then

4454
02:58:54,658 --> 02:58:54,908
map analyzer is the mapping

4455
02:58:56,424 --> 02:58:56,674
component of the chemist system

4456
02:58:57,058 --> 02:58:57,308
how do you how do you do that

4457
02:58:57,724 --> 02:58:57,974
how do you how do you use that

4458
02:58:58,391 --> 02:58:58,641
that

4459
02:59:00,858 --> 02:59:01,108
that software package within

4460
02:59:02,891 --> 02:59:03,141
that chemist system so those are

4461
02:59:04,858 --> 02:59:05,108
some things that we you know

4462
02:59:07,124 --> 02:59:07,374
covered in recent past

4463
02:59:10,391 --> 02:59:10,641
we're always looking for other

4464
02:59:12,391 --> 02:59:12,641
oper other opportunities each

4465
02:59:14,391 --> 02:59:14,641
year at the annual Oklahohoma

4466
02:59:14,991 --> 02:59:15,241
Tax Commission conference

4467
02:59:16,624 --> 02:59:16,874
evaluation conference usually in

4468
02:59:17,291 --> 02:59:17,541
august

4469
02:59:20,391 --> 02:59:20,641
we're usually teaching about40

4470
02:59:22,391 --> 02:59:22,641
to45% of those little

4471
02:59:23,358 --> 02:59:23,608
workshopslash this past august

4472
02:59:24,724 --> 02:59:24,974
we did commercial data

4473
02:59:25,191 --> 02:59:25,441
collection and entry

4474
02:59:28,391 --> 02:59:28,641
we talked about deed viewer

4475
02:59:30,391 --> 02:59:30,641
module that's a module that

4476
02:59:32,391 --> 02:59:32,641
allows the assessor to pull

4477
02:59:33,124 --> 02:59:33,374
deeds from the county clerk's

4478
02:59:34,624 --> 02:59:34,874
office without actually having

4479
02:59:36,391 --> 02:59:36,641
to go and get a paper copy of

4480
02:59:37,058 --> 02:59:37,308
that we can do it electronically

4481
02:59:39,158 --> 02:59:39,408
we talked about generational

4482
02:59:40,624 --> 02:59:40,874
perspectives how did the baby

4483
02:59:42,891 --> 02:59:43,141
boomers deal with the latest how

4484
02:59:44,358 --> 02:59:44,608
do they deal with those students

4485
02:59:45,091 --> 02:59:45,341
that just graduated from high

4486
02:59:46,691 --> 02:59:46,941
school that's employed in the

4487
02:59:48,658 --> 02:59:48,908
assessor's office there's a you

4488
02:59:50,391 --> 02:59:50,641
know a big hurdle for everybody

4489
02:59:51,191 --> 02:59:51,441
to get along. We talked about

4490
02:59:52,891 --> 02:59:53,141
the rankenberg Supreme Court

4491
02:59:54,891 --> 02:59:55,141
case which talks about when you

4492
02:59:56,658 --> 02:59:56,908
actually can put improvements on

4493
02:59:57,424 --> 02:59:57,674
the on the assessment roll

4494
03:00:00,391 --> 03:00:00,641
iveyear manufacturing exemptions

4495
03:00:01,158 --> 03:00:01,408
data entry and maintenance how

4496
03:00:02,924 --> 03:00:03,174
do we do that within the cheva

4497
03:00:04,658 --> 03:00:04,908
system always talk about

4498
03:00:06,624 --> 03:00:06,874
exemptions it's a really there's

4499
03:00:07,291 --> 03:00:07,541
a lot of exemptions we cover

4500
03:00:07,958 --> 03:00:08,208
those

4501
03:00:09,158 --> 03:00:09,408
and then the assessor timeline

4502
03:00:11,091 --> 03:00:11,341
the assessor's office operates

4503
03:00:12,858 --> 03:00:13,108
on a very strict timeline when

4504
03:00:14,624 --> 03:00:14,874
do you have to do what we cover

4505
03:00:15,291 --> 03:00:15,541
that in that timeline

4506
03:00:15,724 --> 03:00:15,974
presentation

4507
03:00:18,891 --> 03:00:19,141
and again as I said we're we're

4508
03:00:20,924 --> 03:00:21,174
constantly looking for topics to

4509
03:00:22,958 --> 03:00:23,208
cover for training topics we're

4510
03:00:25,124 --> 03:00:25,374
constantly asking ours our our

4511
03:00:26,658 --> 03:00:26,908
constituents you know what do

4512
03:00:28,624 --> 03:00:28,874
you need from us and we'll

4513
03:00:30,391 --> 03:00:30,641
develop based upon a needs

4514
03:00:31,358 --> 03:00:31,608
basis we'll develop topics if we

4515
03:00:32,658 --> 03:00:32,908
know that there's a need and

4516
03:00:34,391 --> 03:00:34,641
there's a request for a need

4517
03:00:36,391 --> 03:00:36,641
again I've talked about the

4518
03:00:37,191 --> 03:00:37,441
fourho workshops that we're

4519
03:00:39,158 --> 03:00:39,408
doing just last week we did that

4520
03:00:42,391 --> 03:00:42,641
we we did four hours in Tulsa

4521
03:00:43,424 --> 03:00:43,674
we went to Mccalister the next

4522
03:00:44,924 --> 03:00:45,174
day after that then we wound up

4523
03:00:45,624 --> 03:00:45,874
in Woodward and then we

4524
03:00:47,858 --> 03:00:48,108
followed up with

4525
03:00:53,124 --> 03:00:53,374
Clinton I believelin or we I

4526
03:00:54,658 --> 03:00:54,908
think it was Wetherford where we

4527
03:00:56,658 --> 03:00:56,908
did that so that workshop we

4528
03:00:57,224 --> 03:00:57,474
talked about deeds how do you

4529
03:00:58,858 --> 03:00:59,108
analyze a deed how do you work

4530
03:01:00,624 --> 03:01:00,874
deed within the camera system

4531
03:01:01,224 --> 03:01:01,474
then in the afternoon we talked

4532
03:01:03,091 --> 03:01:03,341
about ok let's analyze that

4533
03:01:04,391 --> 03:01:04,641
information what does that sales

4534
03:01:05,091 --> 03:01:05,341
information telling us about

4535
03:01:05,758 --> 03:01:06,008
what's going on in the market

4536
03:01:09,124 --> 03:01:09,374
and this reduces travel for our

4537
03:01:10,658 --> 03:01:10,908
customers and we start at 10

4538
03:01:14,624 --> 03:01:14,874
and we'll adjourn by 3 3:304

4539
03:01:16,624 --> 03:01:16,874
o'clock depending on how in the

4540
03:01:18,391 --> 03:01:18,641
weeds we want to get in the

4541
03:01:20,458 --> 03:01:20,708
afternoon on that so been very

4542
03:01:21,191 --> 03:01:21,441
successful at that topics that

4543
03:01:22,658 --> 03:01:22,908
we've covered during these

4544
03:01:24,424 --> 03:01:24,674
fourho workshops or again the

4545
03:01:26,424 --> 03:01:26,674
mobile homeme manufacturing 936

4546
03:01:28,391 --> 03:01:28,641
form and data entry on that

4547
03:01:30,391 --> 03:01:30,641
Board of equalization dos and

4548
03:01:31,158 --> 03:01:31,408
don'ts this is for the assessor

4549
03:01:32,924 --> 03:01:33,174
how do you get ready to go to a

4550
03:01:34,924 --> 03:01:35,174
protest to defend the value that

4551
03:01:36,424 --> 03:01:36,674
you placed on that property

4552
03:01:37,191 --> 03:01:37,441
we've talked about the visual

4553
03:01:38,924 --> 03:01:39,174
inspection plan it's a four year

4554
03:01:40,424 --> 03:01:40,674
plan how do you how do you get

4555
03:01:41,124 --> 03:01:41,374
all that done within that for

4556
03:01:41,758 --> 03:01:42,008
you you have to

4557
03:01:44,391 --> 03:01:44,641
inspect all properties with

4558
03:01:45,158 --> 03:01:45,408
Union County at least once every

4559
03:01:47,158 --> 03:01:47,408
four years talked about deeds

4560
03:01:48,891 --> 03:01:49,141
and sales analysis and again

4561
03:01:50,624 --> 03:01:50,874
we're always looking for topics

4562
03:01:51,324 --> 03:01:51,574
to cover in those little

4563
03:01:51,858 --> 03:01:52,108
workshops

4564
03:01:54,924 --> 03:01:55,174
the third component is the

4565
03:01:56,624 --> 03:01:56,874
computer system massoposal

4566
03:01:58,624 --> 03:01:58,874
project and we provide statutory

4567
03:02:00,624 --> 03:02:00,874
training technical assistance

4568
03:02:01,458 --> 03:02:01,708
software appraisal assistance to

4569
03:02:02,124 --> 03:02:02,374
county assessors and deputies.

4570
03:02:02,958 --> 03:02:03,208
we

4571
03:02:08,424 --> 03:02:08,674
we currently have68 of the77

4572
03:02:10,491 --> 03:02:10,741
counties on our our cheva system

4573
03:02:11,158 --> 03:02:11,408
that we support

4574
03:02:14,891 --> 03:02:15,141
we currently have 1f staff that

4575
03:02:16,891 --> 03:02:17,141
support the software support

4576
03:02:18,591 --> 03:02:18,841
training on the software

4577
03:02:20,924 --> 03:02:21,174
appraisal training hands on site

4578
03:02:22,858 --> 03:02:23,108
hands on training mapping

4579
03:02:24,658 --> 03:02:24,908
training data entry and reports

4580
03:02:26,658 --> 03:02:26,908
all kinds of reports are

4581
03:02:28,391 --> 03:02:28,641
requested from the from the

4582
03:02:29,224 --> 03:02:29,474
system and we trained on how to

4583
03:02:29,924 --> 03:02:30,174
generate those

4584
03:02:32,624 --> 03:02:32,874
this is just a map to showing

4585
03:02:34,391 --> 03:02:34,641
you where these chemist staff

4586
03:02:36,624 --> 03:02:36,874
are located they are employees

4587
03:02:38,391 --> 03:02:38,641
of OSU but they're located at

4588
03:02:38,991 --> 03:02:39,241
their home they work out of

4589
03:02:40,658 --> 03:02:40,908
their home so that they don't

4590
03:02:41,258 --> 03:02:41,508
have a lot of travel. they can

4591
03:02:42,891 --> 03:02:43,141
work within their geographical

4592
03:02:46,424 --> 03:02:46,674
area and much more efficient to

4593
03:02:47,124 --> 03:02:47,374
do that instead of everybody

4594
03:02:47,791 --> 03:02:48,041
being out of stillwater

4595
03:02:51,158 --> 03:02:51,408
Recent legislation I'm sure

4596
03:02:52,658 --> 03:02:52,908
everybody in this room's aware

4597
03:02:54,758 --> 03:02:55,008
you know legislation is passed

4598
03:02:55,424 --> 03:02:55,674
as session talked about

4599
03:02:58,391 --> 03:02:58,641
how we're going to value some

4600
03:02:59,158 --> 03:02:59,408
properties residential rental

4601
03:03:00,891 --> 03:03:01,141
housing properties I just put

4602
03:03:02,891 --> 03:03:03,141
that statute up there it refers

4603
03:03:05,124 --> 03:03:05,374
back to2802 which defines what

4604
03:03:07,158 --> 03:03:07,408
that is and it defines what

4605
03:03:10,391 --> 03:03:10,641
residential rental housing means

4606
03:03:12,391 --> 03:03:12,641
basically some multifamily

4607
03:03:14,391 --> 03:03:14,641
housing and you know it looks

4608
03:03:15,124 --> 03:03:15,374
like the statute says we're

4609
03:03:16,658 --> 03:03:16,908
going to use the cost approach

4610
03:03:18,891 --> 03:03:19,141
on that so I don't see a I don't

4611
03:03:21,224 --> 03:03:21,474
see a huge impact for assessors

4612
03:03:24,391 --> 03:03:24,641
to to understand how to do that

4613
03:03:25,024 --> 03:03:25,274
we'll probably be involved in in

4614
03:03:25,691 --> 03:03:25,941
some training

4615
03:03:26,658 --> 03:03:26,908
to get that accomplished

4616
03:03:30,391 --> 03:03:30,641
so now our professional

4617
03:03:32,358 --> 03:03:32,608
organization every profession

4618
03:03:33,058 --> 03:03:33,308
usually has an organization

4619
03:03:33,591 --> 03:03:33,841
behind it

4620
03:03:35,124 --> 03:03:35,374
and ours is the International

4621
03:03:36,858 --> 03:03:37,108
association of assessing

4622
03:03:38,624 --> 03:03:38,874
officeficers and that'siAAO for

4623
03:03:39,291 --> 03:03:39,541
short

4624
03:03:41,158 --> 03:03:41,408
I I bring that up because when I

4625
03:03:43,158 --> 03:03:43,408
ask you to remember the letters

4626
03:03:44,891 --> 03:03:45,141
behind our names on the first

4627
03:03:46,891 --> 03:03:47,141
slide. this is a professional

4628
03:03:48,358 --> 03:03:48,608
organization that was founded in

4629
03:03:50,891 --> 03:03:51,141
1934 to provide training

4630
03:03:51,391 --> 03:03:51,641
professional designations and

4631
03:03:52,924 --> 03:03:53,174
consulting to taxing

4632
03:03:55,124 --> 03:03:55,374
jurisdictions across the world

4633
03:03:56,891 --> 03:03:57,141
have about 8000 members

4634
03:03:59,158 --> 03:03:59,408
worldwide in North America is

4635
03:04:01,124 --> 03:04:01,374
the largest member of the

4636
03:04:02,624 --> 03:04:02,874
organization but there's 35

4637
03:04:03,224 --> 03:04:03,474
foreign countries also that has

4638
03:04:03,891 --> 03:04:04,141
members

4639
03:04:06,624 --> 03:04:06,874
our Oklahoma chapter of this

4640
03:04:07,258 --> 03:04:07,508
organization was established in

4641
03:04:10,391 --> 03:04:10,641
1985 and currently there's

4642
03:04:11,124 --> 03:04:11,374
about25 Oklahoma members that

4643
03:04:13,124 --> 03:04:13,374
hold professional designations

4644
03:04:14,624 --> 03:04:14,874
and there are the letters there

4645
03:04:16,624 --> 03:04:16,874
I have a RAS which is a

4646
03:04:17,158 --> 03:04:17,408
residential evaluation

4647
03:04:20,391 --> 03:04:20,641
specialist carried on skidmore

4648
03:04:21,124 --> 03:04:21,374
the first my assistant director

4649
03:04:22,891 --> 03:04:23,141
she has an assessment

4650
03:04:24,391 --> 03:04:24,641
administration specialist

4651
03:04:26,658 --> 03:04:26,908
designation and there's are are

4652
03:04:28,658 --> 03:04:28,908
other designations so I just

4653
03:04:30,391 --> 03:04:30,641
brought that up to because in

4654
03:04:31,158 --> 03:04:31,408
1988 during that legislation

4655
03:04:31,724 --> 03:04:31,974
reform

4656
03:04:35,158 --> 03:04:35,408
the legis the legislators

4657
03:04:36,891 --> 03:04:37,141
actually consulted with IWO to

4658
03:04:38,624 --> 03:04:38,874
talk about you know what do we

4659
03:04:39,258 --> 03:04:39,508
need what do we need to do for

4660
03:04:40,891 --> 03:04:41,141
ratio studies and what do we

4661
03:04:43,124 --> 03:04:43,374
need to do for education and so

4662
03:04:44,891 --> 03:04:45,141
at that time the legislature

4663
03:04:46,891 --> 03:04:47,141
adopted what we call inhouse

4664
03:04:48,658 --> 03:04:48,908
training instead of going out

4665
03:04:50,391 --> 03:04:50,641
traveling across the United

4666
03:04:52,391 --> 03:04:52,641
States to get training from the

4667
03:04:53,191 --> 03:04:53,441
International association they

4668
03:04:55,158 --> 03:04:55,408
decided to haveclGt do the

4669
03:04:56,658 --> 03:04:56,908
training and so we call it

4670
03:04:58,891 --> 03:04:59,141
inhouse in Oklahoma training for

4671
03:05:00,924 --> 03:05:01,174
accreditation purposesgain I I

4672
03:05:01,591 --> 03:05:01,841
stated that you know5 of our

4673
03:05:04,658 --> 03:05:04,908
courses are patterned after

4674
03:05:05,358 --> 03:05:05,608
these courses administered by

4675
03:05:06,024 --> 03:05:06,274
the association

4676
03:05:09,158 --> 03:05:09,408
the association their courses

4677
03:05:10,891 --> 03:05:11,141
are a little more in depth or a

4678
03:05:12,658 --> 03:05:12,908
day longer there's of courses

4679
03:05:13,258 --> 03:05:13,508
are a little bit more difficult

4680
03:05:14,891 --> 03:05:15,141
their tests a little bit harder

4681
03:05:18,424 --> 03:05:18,674
but to get a designation you

4682
03:05:20,658 --> 03:05:20,908
have to take about6 or7 of their

4683
03:05:21,358 --> 03:05:21,608
courses and pass a couple of

4684
03:05:23,158 --> 03:05:23,408
masters exams in the in the in

4685
03:05:25,191 --> 03:05:25,441
the end to go to get designated

4686
03:05:26,958 --> 03:05:27,208
for one of the choices that s

4687
03:05:27,558 --> 03:05:27,808
that an individual can choose so

4688
03:05:31,124 --> 03:05:31,374
that's what I've got an

4689
03:05:31,591 --> 03:05:31,841
entertain questions if there are

4690
03:05:32,258 --> 03:05:32,508
any

4691
03:05:35,124 --> 03:05:35,374
thank you for that presentation

4692
03:05:36,891 --> 03:05:37,141
we appreciate the important work

4693
03:05:38,391 --> 03:05:38,641
you'll do there and I think

4694
03:05:40,391 --> 03:05:40,641
that's helpful to understand

4695
03:05:42,391 --> 03:05:42,641
where our assessors and our

4696
03:05:42,991 --> 03:05:43,241
other county officials get

4697
03:05:44,624 --> 03:05:44,874
training from so thank you for

4698
03:05:46,424 --> 03:05:46,674
that. proving down the agenda

4699
03:05:47,024 --> 03:05:47,274
madam chairir if it's alright,

4700
03:05:48,924 --> 03:05:49,174
we'd like to recognize Ron Dene,

4701
03:05:50,691 --> 03:05:50,941
the Muscogee County assessor

4702
03:05:52,391 --> 03:05:52,641
from my home county and he's

4703
03:05:54,658 --> 03:05:54,908
gonna share his approach to

4704
03:05:55,224 --> 03:05:55,474
assessing affordable housing

4705
03:05:55,758 --> 03:05:56,008
units.

4706
03:06:00,424 --> 03:06:00,674
thank you so much senator for

4707
03:06:02,424 --> 03:06:02,674
hosting this this interim

4708
03:06:04,391 --> 03:06:04,641
study I appreciate it very much

4709
03:06:06,391 --> 03:06:06,641
thank you Senator Fricks for for

4710
03:06:07,124 --> 03:06:07,374
asking me to present

4711
03:06:10,858 --> 03:06:11,108
I I want to kind of give a

4712
03:06:12,658 --> 03:06:12,908
little bit of of groundwork of

4713
03:06:14,424 --> 03:06:14,674
of why Muskogee County is here

4714
03:06:16,391 --> 03:06:16,641
and why Senator Pricks asked me

4715
03:06:18,391 --> 03:06:18,641
to to speak on this topic

4716
03:06:20,924 --> 03:06:21,174
topic we have got several of

4717
03:06:24,658 --> 03:06:24,908
section42IHTc developments

4718
03:06:26,424 --> 03:06:26,674
within our community that have

4719
03:06:27,191 --> 03:06:27,441
been quite successful through

4720
03:06:30,658 --> 03:06:30,908
the years of helping folks to

4721
03:06:34,391 --> 03:06:34,641
both have affordable homes to

4722
03:06:36,424 --> 03:06:36,674
live in or apartments but as

4723
03:06:37,191 --> 03:06:37,441
well as a path to home ownership

4724
03:06:42,658 --> 03:06:42,908
and so we're we're proud of

4725
03:06:43,258 --> 03:06:43,508
of what has been done there and

4726
03:06:45,391 --> 03:06:45,641
I look forward to a possibility

4727
03:06:47,158 --> 03:06:47,408
of some additional

4728
03:06:48,891 --> 03:06:49,141
developments in our community.

4729
03:06:52,391 --> 03:06:52,641
Muskogee County has 155 single

4730
03:06:54,624 --> 03:06:54,874
family homes that were built

4731
03:06:57,158 --> 03:06:57,408
using the section42lIhTc program

4732
03:07:00,658 --> 03:07:00,908
we also have 300 apartment or

4733
03:07:03,191 --> 03:07:03,441
duplex units that gives us a

4734
03:07:05,191 --> 03:07:05,441
total residential units that

4735
03:07:06,891 --> 03:07:07,141
fall under this program in

4736
03:07:07,524 --> 03:07:07,774
Muskogee County

4737
03:07:14,391 --> 03:07:14,641
of455 individual residential

4738
03:07:14,958 --> 03:07:15,208
units

4739
03:07:19,124 --> 03:07:19,374
the next slide this is just a a

4740
03:07:21,124 --> 03:07:21,374
single family home that is is

4741
03:07:24,391 --> 03:07:24,641
one that is built under this

4742
03:07:26,858 --> 03:07:27,108
program and it's they're

4743
03:07:30,391 --> 03:07:30,641
they're around between 1100

4744
03:07:32,424 --> 03:07:32,674
and1200 square foot two car

4745
03:07:35,124 --> 03:07:35,374
garage and most of these were

4746
03:07:37,124 --> 03:07:37,374
built in the original town site

4747
03:07:40,391 --> 03:07:40,641
of Muskogee on infill lots

4748
03:07:42,391 --> 03:07:42,641
vacant lots that had had been

4749
03:07:43,358 --> 03:07:43,608
setting for a while the city

4750
03:07:44,624 --> 03:07:44,874
the county and individuals

4751
03:07:45,191 --> 03:07:45,441
worked

4752
03:07:48,591 --> 03:07:48,841
with the developers to provide

4753
03:07:50,624 --> 03:07:50,874
those lots and sell those

4754
03:07:54,624 --> 03:07:54,874
this next one is actually in a

4755
03:07:57,124 --> 03:07:57,374
development of53 homes where

4756
03:08:00,858 --> 03:08:01,108
vacant land was purchased

4757
03:08:02,624 --> 03:08:02,874
that had not been developed for

4758
03:08:04,858 --> 03:08:05,108
years it was on the fringe of of

4759
03:08:07,124 --> 03:08:07,374
older and and older neighborhood

4760
03:08:10,591 --> 03:08:10,841
and the city worked with this

4761
03:08:12,358 --> 03:08:12,608
builder to put in the the

4762
03:08:14,424 --> 03:08:14,674
infrastructure and sidewalk

4763
03:08:14,991 --> 03:08:15,241
streets and so on and so forth

4764
03:08:18,824 --> 03:08:19,074
and then then it was was

4765
03:08:20,658 --> 03:08:20,908
built and it's it's been a a a

4766
03:08:24,624 --> 03:08:24,874
good representation this is a

4767
03:08:27,091 --> 03:08:27,341
fi5 and older low income

4768
03:08:30,391 --> 03:08:30,641
apartments that also falls under

4769
03:08:32,858 --> 03:08:33,108
the same same program that

4770
03:08:35,091 --> 03:08:35,341
was was built there in in

4771
03:08:38,858 --> 03:08:39,108
town and my understanding is

4772
03:08:40,858 --> 03:08:41,108
it has a waiting list constantly

4773
03:08:43,091 --> 03:08:43,341
for folks because they're we

4774
03:08:44,658 --> 03:08:44,908
have an aging population in

4775
03:08:45,191 --> 03:08:45,441
Oklahoma

4776
03:08:49,091 --> 03:08:49,341
and and folks that that

4777
03:08:51,124 --> 03:08:51,374
their income is also

4778
03:08:54,391 --> 03:08:54,641
restricted so this this

4779
03:08:55,124 --> 03:08:55,374
development has been great for

4780
03:08:57,091 --> 03:08:57,341
them this is an apartment

4781
03:09:00,358 --> 03:09:00,608
complex that is not age

4782
03:09:02,891 --> 03:09:03,141
restricted that that also

4783
03:09:04,658 --> 03:09:04,908
falls under the the program

4784
03:09:10,624 --> 03:09:10,874
this is a duplex we have got5

4785
03:09:14,391 --> 03:09:14,641
different duplex developments

4786
03:09:16,824 --> 03:09:17,074
within the county that that

4787
03:09:18,824 --> 03:09:19,074
worked quite well and and

4788
03:09:20,858 --> 03:09:21,108
have have fell under this

4789
03:09:24,391 --> 03:09:24,641
this program the total valuation

4790
03:09:25,091 --> 03:09:25,341
of these properties and I think

4791
03:09:27,124 --> 03:09:27,374
this is is is very important to

4792
03:09:29,124 --> 03:09:29,374
to look at these numbers the

4793
03:09:31,091 --> 03:09:31,341
value total valuation of these

4794
03:09:34,924 --> 03:09:35,174
properties for2026 it's 16,495,

4795
03:09:44,658 --> 03:09:44,908
37 $3 or $36,254 per unit the

4796
03:09:48,391 --> 03:09:48,641
estimated taxes for2026 are

4797
03:09:55,124 --> 03:09:55,374
$189,847 or417 dollars per unit.

4798
03:09:58,391 --> 03:09:58,641
Those taxes pay for the services

4799
03:09:59,124 --> 03:09:59,374
provided by the recipients of

4800
03:10:02,624 --> 03:10:02,874
adviloum taxes and in our county

4801
03:10:04,691 --> 03:10:04,941
those funds are broken down and

4802
03:10:05,324 --> 03:10:05,574
distributed as displayed

4803
03:10:09,091 --> 03:10:09,341
ub er schools

4804
03:10:17,124 --> 03:10:17,374
receives $132,931 which is70.02%

4805
03:10:20,391 --> 03:10:20,641
of all ad valoum dollars. the

4806
03:10:23,124 --> 03:10:23,374
county receives 9.82%, which is

4807
03:10:28,858 --> 03:10:29,108
$18,643 the botech the same

4808
03:10:34,691 --> 03:10:34,941
9.82%18,643eastern Oklahoma

4809
03:10:35,291 --> 03:10:35,541
library district 3.

4810
03:10:45,124 --> 03:10:45,374
92 % or7,442

4811
03:10:47,158 --> 03:10:47,408
EMServis2.9cent5600 dollars

4812
03:10:51,091 --> 03:10:51,341
county health department2.45%

4813
03:10:54,891 --> 03:10:55,141
uh4651 dollars and theusskogee

4814
03:10:56,891 --> 03:10:57,141
cityity has a small sinking fund

4815
03:11:00,391 --> 03:11:00,641
for tort claims and judgments of

4816
03:11:04,958 --> 03:11:05,208
1.02% or $1937 so as you can see

4817
03:11:05,624 --> 03:11:05,874
every one of

4818
03:11:11,124 --> 03:11:11,374
those $189,847 that are

4819
03:11:12,858 --> 03:11:13,108
represented in taxes for

4820
03:11:16,658 --> 03:11:16,908
those455 units are going for

4821
03:11:18,624 --> 03:11:18,874
services that are used by the

4822
03:11:21,124 --> 03:11:21,374
residents of that of those

4823
03:11:23,124 --> 03:11:23,374
properties most of of these

4824
03:11:25,124 --> 03:11:25,374
homes because of the nature of

4825
03:11:28,624 --> 03:11:28,874
the program represent a child

4826
03:11:32,358 --> 03:11:32,608
or two or 3 so you've got a lot

4827
03:11:33,358 --> 03:11:33,608
of kids getting on buses at at

4828
03:11:34,958 --> 03:11:35,208
all of these facilities every

4829
03:11:35,624 --> 03:11:35,874
single morning they're going to

4830
03:11:38,591 --> 03:11:38,841
the library they're using the

4831
03:11:40,658 --> 03:11:40,908
health department and and

4832
03:11:42,624 --> 03:11:42,874
hopefully the bow tech is is

4833
03:11:44,858 --> 03:11:45,108
is able to offer a lot of

4834
03:11:46,924 --> 03:11:47,174
education as well as our our

4835
03:11:47,491 --> 03:11:47,741
schools

4836
03:11:52,858 --> 03:11:53,108
working with a local developer

4837
03:11:54,858 --> 03:11:55,108
in2006 that was building single

4838
03:11:57,091 --> 03:11:57,341
family homes the the very first

4839
03:11:58,624 --> 03:11:58,874
picture of the single family

4840
03:12:00,858 --> 03:12:01,108
home that was a a developer that

4841
03:12:05,091 --> 03:12:05,341
developed 142 of them and

4842
03:12:08,391 --> 03:12:08,641
under this program we worked

4843
03:12:10,391 --> 03:12:10,641
together to develop a method of

4844
03:12:12,391 --> 03:12:12,641
valuation that we've used for

4845
03:12:14,624 --> 03:12:14,874
the last 20 years in developing

4846
03:12:18,391 --> 03:12:18,641
all of the LITcH programs

4847
03:12:18,991 --> 03:12:19,241
within our county we use the the

4848
03:12:19,624 --> 03:12:19,874
very

4849
03:12:23,091 --> 03:12:23,341
same method in valuing all of

4850
03:12:24,858 --> 03:12:25,108
them we developed the

4851
03:12:28,624 --> 03:12:28,874
capitalization rate usingU rents

4852
03:12:30,858 --> 03:12:31,108
and accounted for as as you

4853
03:12:32,591 --> 03:12:32,841
presented earlier and I'm so

4854
03:12:34,858 --> 03:12:35,108
glad you touched on that that

4855
03:12:36,391 --> 03:12:36,641
these these developments

4856
03:12:39,124 --> 03:12:39,374
normally have increased expenses

4857
03:12:42,391 --> 03:12:42,641
those are are common for such

4858
03:12:44,624 --> 03:12:44,874
developments so so we accounted

4859
03:12:47,124 --> 03:12:47,374
for the increased expenses on

4860
03:12:48,858 --> 03:12:49,108
those section42 tax credits

4861
03:12:53,324 --> 03:12:53,574
were not used as income or

4862
03:12:56,391 --> 03:12:56,641
considered in the cap the

4863
03:12:56,958 --> 03:12:57,208
development of the

4864
03:12:58,924 --> 03:12:59,174
capitalization rate but in the

4865
03:13:00,858 --> 03:13:01,108
development of that cap rate we

4866
03:13:03,424 --> 03:13:03,674
also did not include a recapture

4867
03:13:04,091 --> 03:13:04,341
of the investment

4868
03:13:08,624 --> 03:13:08,874
on that so it was a a cap rate

4869
03:13:10,624 --> 03:13:10,874
that you would develop based on

4870
03:13:12,624 --> 03:13:12,874
income but it was modified

4871
03:13:15,058 --> 03:13:15,308
because there had been some

4872
03:13:18,591 --> 03:13:18,841
recapture of that so where you

4873
03:13:20,391 --> 03:13:20,641
normally would say for a fif

4874
03:13:23,158 --> 03:13:23,408
to20 year period you're going

4875
03:13:24,691 --> 03:13:24,941
to have a certain percentage

4876
03:13:26,491 --> 03:13:26,741
every year that you've got to

4877
03:13:27,158 --> 03:13:27,408
recapture

4878
03:13:30,624 --> 03:13:30,874
we took that step out what that

4879
03:13:31,391 --> 03:13:31,641
resulted in in removing that one

4880
03:13:34,391 --> 03:13:34,641
step is a traditional cap rate

4881
03:13:35,158 --> 03:13:35,408
on these properties would have

4882
03:13:38,658 --> 03:13:38,908
been a 10.32 cap rate. The

4883
03:13:40,658 --> 03:13:40,908
higher the cap rate the lower

4884
03:13:42,658 --> 03:13:42,908
the value the lower the cap rate

4885
03:13:44,424 --> 03:13:44,674
the higher the value with a

4886
03:13:46,691 --> 03:13:46,941
modified cap rate just with that

4887
03:13:48,924 --> 03:13:49,174
one step of recapture taken out

4888
03:13:52,624 --> 03:13:52,874
it gave us a cap rate of 8.82%.

4889
03:13:55,124 --> 03:13:55,374
Now what did that what did that

4890
03:13:56,458 --> 03:13:56,708
result in in values the

4891
03:13:59,124 --> 03:13:59,374
resulting valuation was the

4892
03:14:01,358 --> 03:14:01,608
construction cost of these units

4893
03:14:04,658 --> 03:14:04,908
in206 when they were built new

4894
03:14:09,158 --> 03:14:09,408
was60,774 dollars and as as you

4895
03:14:10,924 --> 03:14:11,174
eloquently put that that

4896
03:14:13,391 --> 03:14:13,641
construction cost is not is not

4897
03:14:14,924 --> 03:14:15,174
appropriate in this type of

4898
03:14:16,891 --> 03:14:17,141
development to reflect the

4899
03:14:18,958 --> 03:14:19,208
market value because of the

4900
03:14:20,658 --> 03:14:20,908
different expenses that go along

4901
03:14:22,858 --> 03:14:23,108
with it because of the of the

4902
03:14:24,924 --> 03:14:25,174
rent rates a traditional cap

4903
03:14:26,458 --> 03:14:26,708
valuation using that that

4904
03:14:31,091 --> 03:14:31,341
10.32 cap would have resulted in

4905
03:14:37,158 --> 03:14:37,408
a $39,62 valuation or64.3% of

4906
03:14:40,391 --> 03:14:40,641
the construction cost with the

4907
03:14:42,658 --> 03:14:42,908
modified cap rate of 8.82 it

4908
03:14:48,624 --> 03:14:48,874
gave us a value of45,709 or75.2%

4909
03:14:49,324 --> 03:14:49,574
of the construction cost

4910
03:14:53,358 --> 03:14:53,608
this developer built similar

4911
03:14:56,391 --> 03:14:56,641
homes in multiple counties over

4912
03:14:57,191 --> 03:14:57,441
several years and I believe

4913
03:14:58,891 --> 03:14:59,141
you're very familiar with with

4914
03:15:01,158 --> 03:15:01,408
this developer and during that

4915
03:15:04,891 --> 03:15:05,141
time he he always encouraged the

4916
03:15:06,658 --> 03:15:06,908
ancestors in those counties

4917
03:15:08,391 --> 03:15:08,641
please call Muskogee County and

4918
03:15:09,158 --> 03:15:09,408
visit with him we have a

4919
03:15:11,158 --> 03:15:11,408
development there and we worked

4920
03:15:16,624 --> 03:15:16,874
with them on a a fair

4921
03:15:18,424 --> 03:15:18,674
approach to valuation and we're

4922
03:15:19,158 --> 03:15:19,408
comfortable with it and we would

4923
03:15:19,824 --> 03:15:20,074
like that applied on our

4924
03:15:23,391 --> 03:15:23,641
properties in your county as as

4925
03:15:24,891 --> 03:15:25,141
well and several of those

4926
03:15:27,158 --> 03:15:27,408
candidates did did adopt that

4927
03:15:30,391 --> 03:15:30,641
valuation method and it was very

4928
03:15:32,658 --> 03:15:32,908
successful. It was a successful

4929
03:15:34,691 --> 03:15:34,941
program for our community but it

4930
03:15:36,424 --> 03:15:36,674
was also a successful program

4931
03:15:39,124 --> 03:15:39,374
for the developer as well in2023

4932
03:15:42,391 --> 03:15:42,641
he started selling off those

4933
03:15:45,124 --> 03:15:45,374
homes and the median sale price

4934
03:15:47,424 --> 03:15:47,674
for those homes was78,000

4935
03:15:49,158 --> 03:15:49,408
dollars and at that time our

4936
03:15:49,824 --> 03:15:50,074
meeting in a praised

4937
03:15:53,124 --> 03:15:53,374
value on these properties

4938
03:15:57,124 --> 03:15:57,374
were59,912 dollars so with with

4939
03:15:59,158 --> 03:15:59,408
the sale price median sale price

4940
03:16:02,858 --> 03:16:03,108
of78,000 and we had a value of59

4941
03:16:05,124 --> 03:16:05,374
912 it proved that over the

4942
03:16:10,391 --> 03:16:10,641
course from2006 to2023 this

4943
03:16:12,391 --> 03:16:12,641
developer was able to maintain

4944
03:16:15,124 --> 03:16:15,374
take care of a lot of

4945
03:16:16,891 --> 03:16:17,141
maintenance and a lot of upkeep

4946
03:16:18,391 --> 03:16:18,641
in his properties when he sold

4947
03:16:19,124 --> 03:16:19,374
them were in near as good a

4948
03:16:19,691 --> 03:16:19,941
shape as

4949
03:16:22,358 --> 03:16:22,608
they were when he built them

4950
03:16:24,391 --> 03:16:24,641
in2006 because of the way that

4951
03:16:25,124 --> 03:16:25,374
they were managed and he was

4952
03:16:27,191 --> 03:16:27,441
able to do that using the

4953
03:16:30,358 --> 03:16:30,608
modified valuation that we had

4954
03:16:33,158 --> 03:16:33,408
and at the same time his folks

4955
03:16:35,124 --> 03:16:35,374
that were residents in those

4956
03:16:37,158 --> 03:16:37,408
properties were being serviced

4957
03:16:39,158 --> 03:16:39,408
by the tax dollars that were

4958
03:16:40,891 --> 03:16:41,141
were being provided on those

4959
03:16:42,891 --> 03:16:43,141
properties it was not a burden

4960
03:16:44,624 --> 03:16:44,874
for the developer and then at

4961
03:16:46,924 --> 03:16:47,174
the time the sale happened he

4962
03:16:49,158 --> 03:16:49,408
realized a profit on those

4963
03:16:49,724 --> 03:16:49,974
properties and

4964
03:16:53,391 --> 03:16:53,641
at the same time we were at a

4965
03:16:56,391 --> 03:16:56,641
reasonable defence in

4966
03:17:02,391 --> 03:17:02,641
valuation on that so as

4967
03:17:04,658 --> 03:17:04,908
as the other presentative said I

4968
03:17:06,391 --> 03:17:06,641
I would be willing to take any

4969
03:17:08,624 --> 03:17:08,874
questions now from anyone or at

4970
03:17:10,491 --> 03:17:10,741
the end of the presentation and

4971
03:17:11,124 --> 03:17:11,374
I appreciate your time

4972
03:17:13,758 --> 03:17:14,008
thank you so much for your

4973
03:17:14,624 --> 03:17:14,874
presentation and I think that's

4974
03:17:16,591 --> 03:17:16,841
very helpful and appreciate you

4975
03:17:17,291 --> 03:17:17,541
making the trip over here today

4976
03:17:20,624 --> 03:17:20,874
and and to to present finally

4977
03:17:22,624 --> 03:17:22,874
our our final presenter today

4978
03:17:24,858 --> 03:17:25,108
isissa Button she's with

4979
03:17:26,424 --> 03:17:26,674
Dominium, she's the director of

4980
03:17:28,391 --> 03:17:28,641
their government relations and

4981
03:17:29,091 --> 03:17:29,341
with that madam chairir I'd like

4982
03:17:30,691 --> 03:17:30,941
to turn it over to Marissa thank

4983
03:17:32,891 --> 03:17:33,141
you so much and thank you madam

4984
03:17:34,424 --> 03:17:34,674
chair thank you Senator Fricks I

4985
03:17:35,191 --> 03:17:35,441
just want to acknowledge you did

4986
03:17:37,158 --> 03:17:37,408
such a great job succinctly

4987
03:17:38,458 --> 03:17:38,708
explaining the light tech

4988
03:17:39,024 --> 03:17:39,274
program and probably better than

4989
03:17:40,691 --> 03:17:40,941
any of us that are in the weeds

4990
03:17:41,324 --> 03:17:41,574
could do that so so

4991
03:17:44,458 --> 03:17:44,708
props for that so so thank

4992
03:17:45,158 --> 03:17:45,408
you all really a pleasure to be

4993
03:17:47,124 --> 03:17:47,374
here my approach is going to be

4994
03:17:48,891 --> 03:17:49,141
just a touch different say I'm

4995
03:17:50,391 --> 03:17:50,641
going to humanize the things

4996
03:17:51,091 --> 03:17:51,341
that we're talking about with

4997
03:17:54,624 --> 03:17:54,874
regard to these policies as we

4998
03:17:56,424 --> 03:17:56,674
look at affordable housing

4999
03:17:57,124 --> 03:17:57,374
developments I think there's

5000
03:17:58,891 --> 03:17:59,141
definitely a through line in

5001
03:18:00,658 --> 03:18:00,908
this session from the last

5002
03:18:02,658 --> 03:18:02,908
interim study the whole reason

5003
03:18:03,258 --> 03:18:03,508
we're talking about this is

5004
03:18:04,891 --> 03:18:05,141
there's a deficit in housing

5005
03:18:06,891 --> 03:18:07,141
supply throughout the state and

5006
03:18:09,158 --> 03:18:09,408
there is certainly a big toolbox

5007
03:18:10,891 --> 03:18:11,141
that has a lot of tools for a

5008
03:18:11,524 --> 03:18:11,774
multifamily rental to home

5009
03:18:14,691 --> 03:18:14,941
ownership programs that these

5010
03:18:16,891 --> 03:18:17,141
policies are designed to to

5011
03:18:18,624 --> 03:18:18,874
facilitate because there is a

5012
03:18:20,891 --> 03:18:21,141
deficit in supply. So a little

5013
03:18:23,091 --> 03:18:23,341
bit about dominion we have a

5014
03:18:25,124 --> 03:18:25,374
significant presence in Oklahoma

5015
03:18:26,691 --> 03:18:26,941
we're in the process of

5016
03:18:27,224 --> 03:18:27,474
developing over the next few

5017
03:18:27,891 --> 03:18:28,141
years

5018
03:18:31,091 --> 03:18:31,341
about 1000 units of multifamily

5019
03:18:32,891 --> 03:18:33,141
affordable workforce housing

5020
03:18:34,624 --> 03:18:34,874
through the light tech program

5021
03:18:35,324 --> 03:18:35,574
which you've heard a ton about

5022
03:18:36,624 --> 03:18:36,874
today so I'm not going to go

5023
03:18:38,624 --> 03:18:38,874
into the weeds about yi tech

5024
03:18:39,324 --> 03:18:39,574
functionally in this

5025
03:18:42,891 --> 03:18:43,141
presentation but but with that

5026
03:18:44,658 --> 03:18:44,908
these are developments of

5027
03:18:46,424 --> 03:18:46,674
significant size and a

5028
03:18:46,924 --> 03:18:47,174
significant number of units in

5029
03:18:50,391 --> 03:18:50,641
scope and we've worked with

5030
03:18:51,124 --> 03:18:51,374
the Oklahoma housing finance

5031
03:18:53,158 --> 03:18:53,408
Agency to really pull out their

5032
03:18:55,158 --> 03:18:55,408
bond program and get a real

5033
03:18:56,924 --> 03:18:57,174
scale of development to meet

5034
03:18:57,558 --> 03:18:57,808
that housing needs so I wanted

5035
03:18:58,224 --> 03:18:58,474
you

5036
03:19:00,391 --> 03:19:00,641
to know that's the framework in

5037
03:19:02,391 --> 03:19:02,641
which I'm I'm talking about

5038
03:19:03,091 --> 03:19:03,341
today so even though my slides

5039
03:19:04,858 --> 03:19:05,108
talk about light tech I will

5040
03:19:06,391 --> 03:19:06,641
jump through it pretty quickly

5041
03:19:07,091 --> 03:19:07,341
because I know we're coming to

5042
03:19:09,091 --> 03:19:09,341
time as well but I think

5043
03:19:10,891 --> 03:19:11,141
something that's important to

5044
03:19:12,891 --> 03:19:13,141
understand when we talk about

5045
03:19:14,891 --> 03:19:15,141
policy related to affordable

5046
03:19:16,624 --> 03:19:16,874
housing and particularly tax

5047
03:19:18,858 --> 03:19:19,108
policy as we get in the weeds is

5048
03:19:21,124 --> 03:19:21,374
y tech in many ways is different

5049
03:19:22,658 --> 03:19:22,908
than what some think about

5050
03:19:23,258 --> 03:19:23,508
affordable housing so you're

5051
03:19:24,624 --> 03:19:24,874
going to hear me myth bust in

5052
03:19:26,891 --> 03:19:27,141
the next few minutes as well.

5053
03:19:27,591 --> 03:19:27,841
obviously as it has been

5054
03:19:28,124 --> 03:19:28,374
describe

5055
03:19:30,624 --> 03:19:30,874
d light tech is a financing tool

5056
03:19:33,091 --> 03:19:33,341
and it is an incentive to build,

5057
03:19:36,391 --> 03:19:36,641
develop and invest in areas so

5058
03:19:37,091 --> 03:19:37,341
in this state the reason the

5059
03:19:39,324 --> 03:19:39,574
program is really important

5060
03:19:41,158 --> 03:19:41,408
and effective is it is because

5061
03:19:43,124 --> 03:19:43,374
it incentivizes that investment

5062
03:19:45,158 --> 03:19:45,408
and it's not investment from the

5063
03:19:46,891 --> 03:19:47,141
developer that comes in but it's

5064
03:19:48,858 --> 03:19:49,108
the investment in the financing

5065
03:19:50,858 --> 03:19:51,108
partners as well it's the

5066
03:19:51,458 --> 03:19:51,708
investment in the increased

5067
03:19:53,124 --> 03:19:53,374
value through commercial

5068
03:19:56,391 --> 03:19:56,641
benefits to those areas as well

5069
03:19:57,191 --> 03:19:57,441
so it really is a remarkable

5070
03:19:57,791 --> 03:19:58,041
program and it's

5071
03:20:00,858 --> 03:20:01,108
been around for40 years so

5072
03:20:04,391 --> 03:20:04,641
that's really a hallmark of the

5073
03:20:05,091 --> 03:20:05,341
program as well it is not a

5074
03:20:08,358 --> 03:20:08,608
rental subsidy and so I just

5075
03:20:09,358 --> 03:20:09,608
want to you know whenever we

5076
03:20:10,891 --> 03:20:11,141
have the mic I like to do some

5077
03:20:12,658 --> 03:20:12,908
myth busting about that lie tech

5078
03:20:14,391 --> 03:20:14,641
is not a rental subsidy it's

5079
03:20:15,124 --> 03:20:15,374
something much different. These

5080
03:20:17,124 --> 03:20:17,374
are modern quality apartments

5081
03:20:18,858 --> 03:20:19,108
designed to serve the workforce

5082
03:20:22,391 --> 03:20:22,641
in an area and the beautiful

5083
03:20:24,624 --> 03:20:24,874
part about the program aslance

5084
03:20:27,224 --> 03:20:27,474
mentioned is once you get those

5085
03:20:27,891 --> 03:20:28,141
credits and it becomes that

5086
03:20:28,424 --> 03:20:28,674
financing

5087
03:20:30,858 --> 03:20:31,108
tool and you get that investment

5088
03:20:32,858 --> 03:20:33,108
there is long term monitoring

5089
03:20:34,591 --> 03:20:34,841
for the commitments that are

5090
03:20:35,258 --> 03:20:35,508
made in that program so

5091
03:20:40,358 --> 03:20:40,608
OFA is a excellent partner and

5092
03:20:42,358 --> 03:20:42,608
they are mandated to make sure

5093
03:20:44,358 --> 03:20:44,608
that these developments serve

5094
03:20:45,058 --> 03:20:45,308
the incomes that they are

5095
03:20:46,891 --> 03:20:47,141
limited to and charge the rents

5096
03:20:48,391 --> 03:20:48,641
that are limited which

5097
03:20:50,658 --> 03:20:50,908
ultimately is a charitable

5098
03:20:52,624 --> 03:20:52,874
purpose of the program itself

5099
03:20:54,391 --> 03:20:54,641
it's meeting the gap it's

5100
03:20:55,124 --> 03:20:55,374
serving those needs in the

5101
03:20:56,858 --> 03:20:57,108
community and the state housing

5102
03:20:58,624 --> 03:20:58,874
finance agency is the one that's

5103
03:21:00,624 --> 03:21:00,874
making sure that laura that

5104
03:21:02,391 --> 03:21:02,641
lance mentioned that has all

5105
03:21:03,091 --> 03:21:03,341
those requirements is is

5106
03:21:05,191 --> 03:21:05,441
actually being set forth but

5107
03:21:05,858 --> 03:21:06,108
the beautiful part about the

5108
03:21:06,524 --> 03:21:06,774
public

5109
03:21:08,591 --> 03:21:08,841
private partnership is not only

5110
03:21:10,391 --> 03:21:10,641
do you get it from OA but you

5111
03:21:11,091 --> 03:21:11,341
get it from your private

5112
03:21:12,858 --> 03:21:13,108
investment as well you know

5113
03:21:14,624 --> 03:21:14,874
there's banks that have invested

5114
03:21:15,358 --> 03:21:15,608
there's private financing

5115
03:21:16,891 --> 03:21:17,141
partners that have put debt on

5116
03:21:18,658 --> 03:21:18,908
this that you're responsible for

5117
03:21:20,391 --> 03:21:20,641
paying back through part of the

5118
03:21:21,091 --> 03:21:21,341
life of the development in the

5119
03:21:22,624 --> 03:21:22,874
permanent phase and they are

5120
03:21:24,658 --> 03:21:24,908
also tracking and making sure

5121
03:21:25,258 --> 03:21:25,508
these things are happening. so

5122
03:21:27,158 --> 03:21:27,408
it is a legit very legitimate

5123
03:21:28,924 --> 03:21:29,174
program that provides a big

5124
03:21:30,891 --> 03:21:31,141
incentive to the community. I'm

5125
03:21:32,491 --> 03:21:32,741
gonna go through some

5126
03:21:36,858 --> 03:21:37,108
quick example slides these

5127
03:21:37,424 --> 03:21:37,674
developments are specs of

5128
03:21:38,858 --> 03:21:39,108
certain things that dominion's

5129
03:21:40,658 --> 03:21:40,908
done over time but what you see

5130
03:21:42,891 --> 03:21:43,141
is these communities provide

5131
03:21:44,891 --> 03:21:45,141
amenities that are beneficial to

5132
03:21:46,658 --> 03:21:46,908
the community to add value

5133
03:21:48,858 --> 03:21:49,108
overall to the residents and

5134
03:21:50,658 --> 03:21:50,908
have overall sort of maintenance

5135
03:21:52,624 --> 03:21:52,874
as well with on site management

5136
03:21:55,124 --> 03:21:55,374
and the in unit amenities

5137
03:21:58,391 --> 03:21:58,641
have high standards as well and

5138
03:22:00,391 --> 03:22:00,641
part of what we're doing here is

5139
03:22:01,091 --> 03:22:01,341
making sure that when you drive

5140
03:22:02,458 --> 03:22:02,708
by any development, well yes it

5141
03:22:04,958 --> 03:22:05,208
may be different because it is

5142
03:22:06,624 --> 03:22:06,874
income restricted and rent

5143
03:22:07,424 --> 03:22:07,674
restricted. Anybody that's

5144
03:22:10,391 --> 03:22:10,641
driving by has no idea that that

5145
03:22:12,424 --> 03:22:12,674
is housing that is subsidized

5146
03:22:13,024 --> 03:22:13,274
anyway they're proud to have it

5147
03:22:14,658 --> 03:22:14,908
a part of their community it is

5148
03:22:16,924 --> 03:22:17,174
serving a need and a deficit of

5149
03:22:18,658 --> 03:22:18,908
units and housing supply in the

5150
03:22:20,424 --> 03:22:20,674
community and it's really

5151
03:22:20,924 --> 03:22:21,174
important that it presents that

5152
03:22:23,191 --> 03:22:23,441
way as well and some may say but

5153
03:22:24,924 --> 03:22:25,174
my gosh these things they seem

5154
03:22:26,924 --> 03:22:27,174
so fancy will ultimately we are

5155
03:22:28,924 --> 03:22:29,174
doing a quality product that is

5156
03:22:30,624 --> 03:22:30,874
going to be under an

5157
03:22:32,491 --> 03:22:32,741
affordability restriction for 30

5158
03:22:33,158 --> 03:22:33,408
fi0 sometimes

5159
03:22:35,124 --> 03:22:35,374
into the perpetuity depending on

5160
03:22:36,858 --> 03:22:37,108
the program that it's financed

5161
03:22:38,891 --> 03:22:39,141
with so if we do quality on the

5162
03:22:40,624 --> 03:22:40,874
front end it extends through the

5163
03:22:42,391 --> 03:22:42,641
life of the development you're

5164
03:22:44,391 --> 03:22:44,641
not coming back and having to do

5165
03:22:45,091 --> 03:22:45,341
a significant amount of

5166
03:22:46,891 --> 03:22:47,141
refinancing or becoming a blight

5167
03:22:48,624 --> 03:22:48,874
to the community overall that

5168
03:22:49,324 --> 03:22:49,574
would perpetuate stereotypes

5169
03:22:51,158 --> 03:22:51,408
about affordable housing so we

5170
03:22:52,658 --> 03:22:52,908
think this is really important

5171
03:22:54,658 --> 03:22:54,908
and again family development

5172
03:22:55,291 --> 03:22:55,541
you've got a playground here

5173
03:22:56,891 --> 03:22:57,141
you've got an outdoor grilling

5174
03:22:58,391 --> 03:22:58,641
area things that anybody would

5175
03:23:01,124 --> 03:23:01,374
like to have you know where

5176
03:23:02,524 --> 03:23:02,774
they live you know I said

5177
03:23:03,058 --> 03:23:03,308
that

5178
03:23:05,158 --> 03:23:05,408
I would make this about the who

5179
03:23:06,624 --> 03:23:06,874
a little bit more and try to

5180
03:23:08,658 --> 03:23:08,908
humanize it and part of this is

5181
03:23:10,391 --> 03:23:10,641
understanding who lives in live

5182
03:23:11,158 --> 03:23:11,408
tech developments and what

5183
03:23:12,891 --> 03:23:13,141
charitable benefit and need does

5184
03:23:15,158 --> 03:23:15,408
it serve? So you heard in the

5185
03:23:18,391 --> 03:23:18,641
last session Mr beaver from offA

5186
03:23:20,391 --> 03:23:20,641
talked about the sort of need

5187
03:23:21,024 --> 03:23:21,274
study that was done throughout

5188
03:23:22,658 --> 03:23:22,908
the state at a statewide level

5189
03:23:24,391 --> 03:23:24,641
and this is just some

5190
03:23:24,924 --> 03:23:25,174
information that complements

5191
03:23:26,658 --> 03:23:26,908
that from the national

5192
03:23:28,891 --> 03:23:29,141
lowwcomehousing coalition we

5193
03:23:30,658 --> 03:23:30,908
have a significant amount of

5194
03:23:32,491 --> 03:23:32,741
renters in Oklahoma that are

5195
03:23:33,158 --> 03:23:33,408
paying more than half

5196
03:23:36,358 --> 03:23:36,608
of their income on their housing

5197
03:23:37,324 --> 03:23:37,574
costs.grams like Lytech are

5198
03:23:39,124 --> 03:23:39,374
designed to serve those cost

5199
03:23:40,858 --> 03:23:41,108
burdened individuals and get

5200
03:23:44,624 --> 03:23:44,874
them below 30% of their income

5201
03:23:46,891 --> 03:23:47,141
being attributed to their

5202
03:23:47,424 --> 03:23:47,674
housing

5203
03:23:49,358 --> 03:23:49,608
to their housing costs because

5204
03:23:50,891 --> 03:23:51,141
you know when it goes the cost

5205
03:23:53,091 --> 03:23:53,341
burden increases that individual

5206
03:23:55,124 --> 03:23:55,374
does not have the resources to

5207
03:23:56,891 --> 03:23:57,141
address things like healthcare

5208
03:23:58,391 --> 03:23:58,641
transportation where they're

5209
03:23:59,124 --> 03:23:59,374
getting their groceries, what's

5210
03:24:01,091 --> 03:24:01,341
happening with that and part of

5211
03:24:02,458 --> 03:24:02,708
the issue with the deficit is

5212
03:24:04,858 --> 03:24:05,108
you've got developers and

5213
03:24:06,358 --> 03:24:06,608
landlords in the state that

5214
03:24:07,391 --> 03:24:07,641
cannot build or operate rental

5215
03:24:09,158 --> 03:24:09,408
homes at prices that are

5216
03:24:11,158 --> 03:24:11,408
affordable to households because

5217
03:24:12,658 --> 03:24:12,908
what the household can pay in

5218
03:24:14,658 --> 03:24:14,908
rent can't cover the cost to

5219
03:24:15,291 --> 03:24:15,541
build and operate the project so

5220
03:24:16,624 --> 03:24:16,874
this is just really a through

5221
03:24:18,391 --> 03:24:18,641
line of whatlance is mentioning

5222
03:24:19,424 --> 03:24:19,674
as well and why when you talk

5223
03:24:21,124 --> 03:24:21,374
about valuation and and and

5224
03:24:21,691 --> 03:24:21,941
things of that nature

5225
03:24:24,391 --> 03:24:24,641
when you have a light tech deal

5226
03:24:25,158 --> 03:24:25,408
when the market changes you

5227
03:24:26,891 --> 03:24:27,141
can't just increase rents right?

5228
03:24:28,624 --> 03:24:28,874
And so that's a really

5229
03:24:30,391 --> 03:24:30,641
significant thing when we

5230
03:24:31,124 --> 03:24:31,374
understand the impacts of

5231
03:24:32,824 --> 03:24:33,074
operating expenses on a

5232
03:24:35,091 --> 03:24:35,341
development and what is

5233
03:24:36,624 --> 03:24:36,874
available for operating income

5234
03:24:38,891 --> 03:24:39,141
on a development as well so this

5235
03:24:41,124 --> 03:24:41,374
is just a little snapshot

5236
03:24:42,858 --> 03:24:43,108
Oklahoma City so right this is

5237
03:24:44,891 --> 03:24:45,141
not statewide for Oklahoma the

5238
03:24:46,591 --> 03:24:46,841
little snapshot theli tech

5239
03:24:47,324 --> 03:24:47,574
program those income limits and

5240
03:24:49,158 --> 03:24:49,408
rent limits are dictated by how

5241
03:24:50,858 --> 03:24:51,108
they come out every year they

5242
03:24:51,558 --> 03:24:51,808
are updated by

5243
03:24:56,391 --> 03:24:56,641
metropolitan areas and and so

5244
03:24:57,124 --> 03:24:57,374
there's a whole methodology

5245
03:24:58,658 --> 03:24:58,908
behind it. I didn't make this up

5246
03:25:00,658 --> 03:25:00,908
that all all of that is to say

5247
03:25:01,324 --> 03:25:01,574
but it's a recognition of what

5248
03:25:02,858 --> 03:25:03,108
you can see here in live tech

5249
03:25:04,391 --> 03:25:04,641
developments you're mostly

5250
03:25:04,991 --> 03:25:05,241
serving folks that are at or

5251
03:25:07,091 --> 03:25:07,341
below60% area median income and

5252
03:25:09,091 --> 03:25:09,341
when HUD comes out with those

5253
03:25:12,391 --> 03:25:12,641
income limits that goes by

5254
03:25:14,391 --> 03:25:14,641
persons in the household and I

5255
03:25:16,624 --> 03:25:16,874
have the 140% threshold here

5256
03:25:17,391 --> 03:25:17,641
because the beauty of this

5257
03:25:19,124 --> 03:25:19,374
program also from a myth busting

5258
03:25:21,191 --> 03:25:21,441
perspective is that it does not

5259
03:25:21,824 --> 03:25:22,074
incentivize people

5260
03:25:24,924 --> 03:25:25,174
not to get promotions or not to

5261
03:25:26,624 --> 03:25:26,874
get better jobs or not to

5262
03:25:28,491 --> 03:25:28,741
increase income. The program

5263
03:25:29,058 --> 03:25:29,308
recognizes

5264
03:25:30,924 --> 03:25:31,174
as long as you're initially

5265
03:25:32,924 --> 03:25:33,174
qualified if your income

5266
03:25:34,624 --> 03:25:34,874
increases and gets up to that

5267
03:25:36,691 --> 03:25:36,941
140% threshold you are allowed

5268
03:25:38,691 --> 03:25:38,941
to stay in the development and

5269
03:25:40,658 --> 03:25:40,908
the beauty of that is you start

5270
03:25:42,924 --> 03:25:43,174
saving you you go through that

5271
03:25:44,891 --> 03:25:45,141
sort of spectrum of now I can

5272
03:25:46,658 --> 03:25:46,908
move into one of the single

5273
03:25:48,424 --> 03:25:48,674
family homes that are being

5274
03:25:49,158 --> 03:25:49,408
produced either through this

5275
03:25:51,158 --> 03:25:51,408
you know program or you know

5276
03:25:52,958 --> 03:25:53,208
being able to access down

5277
03:25:54,658 --> 03:25:54,908
payment assistance for a single

5278
03:25:56,391 --> 03:25:56,641
family home so so we know it's a

5279
03:25:58,391 --> 03:25:58,641
long sort of road to housing so

5280
03:25:59,091 --> 03:25:59,341
to speak as that has been

5281
03:25:59,658 --> 03:25:59,908
brought up today

5282
03:26:00,891 --> 03:26:01,141
but this is a really important

5283
03:26:02,891 --> 03:26:03,141
aspect of the program to mythbus

5284
03:26:04,624 --> 03:26:04,874
that and so when we talk about

5285
03:26:05,391 --> 03:26:05,641
rent limits the other thing that

5286
03:26:07,158 --> 03:26:07,408
this demonstrates is really

5287
03:26:10,891 --> 03:26:11,141
that there are we have a just

5288
03:26:12,691 --> 03:26:12,941
the difference between 80% AMI

5289
03:26:15,158 --> 03:26:15,408
and60% AMI again you have the

5290
03:26:16,658 --> 03:26:16,908
income limits of what someone

5291
03:26:17,258 --> 03:26:17,508
makes but then what can the

5292
03:26:18,658 --> 03:26:18,908
renter be charged and what is

5293
03:26:20,658 --> 03:26:20,908
that you know upward limit for

5294
03:26:22,658 --> 03:26:22,908
households and it increases with

5295
03:26:23,391 --> 03:26:23,641
the number of persons but

5296
03:26:26,391 --> 03:26:26,641
it's60% AMI those are the posted

5297
03:26:27,191 --> 03:26:27,441
rent limits in Oklahoma City

5298
03:26:28,658 --> 03:26:28,908
what this tells you is these are

5299
03:26:29,324 --> 03:26:29,574
members of your work

5300
03:26:32,391 --> 03:26:32,641
f or ce People are working here

5301
03:26:34,624 --> 03:26:34,874
to pay rent to the owner

5302
03:26:35,391 --> 03:26:35,641
operators of the developments as

5303
03:26:38,658 --> 03:26:38,908
well and so you know there's a

5304
03:26:40,924 --> 03:26:41,174
lot of like we've talked

5305
03:26:42,924 --> 03:26:43,174
about before sort of negativity

5306
03:26:44,658 --> 03:26:44,908
and thoughts about affordable

5307
03:26:46,391 --> 03:26:46,641
housing and that the people that

5308
03:26:47,158 --> 03:26:47,408
live there aren't contributing

5309
03:26:48,924 --> 03:26:49,174
to either the workforce or the

5310
03:26:50,658 --> 03:26:50,908
economy or antiquated ideas

5311
03:26:52,391 --> 03:26:52,641
about folks that live there are

5312
03:26:53,158 --> 03:26:53,408
criminals or or things like that

5313
03:26:54,891 --> 03:26:55,141
or it brings an unsavory aspect

5314
03:26:56,924 --> 03:26:57,174
to a community and that's just

5315
03:26:58,624 --> 03:26:58,874
simply not the case from an

5316
03:26:59,191 --> 03:26:59,441
individual perspective you

5317
03:27:00,891 --> 03:27:01,141
have people contributing to the

5318
03:27:04,391 --> 03:27:04,641
economy from a perspective of

5319
03:27:05,158 --> 03:27:05,408
the quality of the

5320
03:27:06,658 --> 03:27:06,908
developments that come in and

5321
03:27:08,391 --> 03:27:08,641
the data that reflects the

5322
03:27:09,158 --> 03:27:09,408
values of the property

5323
03:27:10,658 --> 03:27:10,908
surrounding those developments

5324
03:27:12,658 --> 03:27:12,908
in light tech increase as well

5325
03:27:14,891 --> 03:27:15,141
it's really important so the

5326
03:27:16,891 --> 03:27:17,141
other piece of that is through

5327
03:27:18,658 --> 03:27:18,908
OA that long term

5328
03:27:20,424 --> 03:27:20,674
affordability period is being

5329
03:27:22,391 --> 03:27:22,641
monitored residents are having

5330
03:27:23,158 --> 03:27:23,408
background checks done like all

5331
03:27:26,391 --> 03:27:26,641
of this is a really well oiled

5332
03:27:27,158 --> 03:27:27,408
machine in place from that

5333
03:27:28,624 --> 03:27:28,874
regulatory perspective and so

5334
03:27:29,291 --> 03:27:29,541
these are

5335
03:27:30,891 --> 03:27:31,141
not real residents these are

5336
03:27:32,358 --> 03:27:32,608
stock photos as you can probably

5337
03:27:34,391 --> 03:27:34,641
tell. but this sort of gives you

5338
03:27:36,658 --> 03:27:36,908
a snapshot right? John Sarah and

5339
03:27:38,391 --> 03:27:38,641
three kids you have someone

5340
03:27:39,158 --> 03:27:39,408
these these salaries are pulled

5341
03:27:41,124 --> 03:27:41,374
from indeed in this area.

5342
03:27:43,158 --> 03:27:43,408
pharmacy tech toddler teacher

5343
03:27:46,658 --> 03:27:46,908
combined annual income of63,000

5344
03:27:48,391 --> 03:27:48,641
we have a fiveperson income

5345
03:27:50,391 --> 03:27:50,641
limit through that methodology I

5346
03:27:51,124 --> 03:27:51,374
told you about of just

5347
03:27:53,124 --> 03:27:53,374
over63,000 they fall within the

5348
03:27:54,891 --> 03:27:55,141
income limit they've got a four

5349
03:27:56,891 --> 03:27:57,141
bedroom rent and this allows

5350
03:27:58,624 --> 03:27:58,874
them to also as I mentioned

5351
03:27:59,191 --> 03:27:59,441
before not

5352
03:28:01,158 --> 03:28:01,408
be stuck at that level continue

5353
03:28:02,858 --> 03:28:03,108
to improve in their careers and

5354
03:28:04,891 --> 03:28:05,141
their own economic development

5355
03:28:06,658 --> 03:28:06,908
as a family another example

5356
03:28:08,391 --> 03:28:08,641
Daniella and daughter again

5357
03:28:09,091 --> 03:28:09,341
stock phototo made up but pulled

5358
03:28:11,158 --> 03:28:11,408
data from Deercreekschools.org

5359
03:28:14,391 --> 03:28:14,641
it shows that the same kind of

5360
03:28:16,624 --> 03:28:16,874
thing. So I'm gonna jump

5361
03:28:17,124 --> 03:28:17,374
through we know there's an

5362
03:28:18,924 --> 03:28:19,174
economic impact the thing that I

5363
03:28:20,391 --> 03:28:20,641
will bring this into a closing

5364
03:28:21,058 --> 03:28:21,308
in is that

5365
03:28:24,924 --> 03:28:25,174
when we talk about uncertainty

5366
03:28:26,891 --> 03:28:27,141
in the ad valorem tax for

5367
03:28:28,391 --> 03:28:28,641
affordable housing and any

5368
03:28:30,624 --> 03:28:30,874
valuation. what it does is it

5369
03:28:31,224 --> 03:28:31,474
puts a chilling effect on that

5370
03:28:34,358 --> 03:28:34,608
investment from folks who want

5371
03:28:36,391 --> 03:28:36,641
to come in and provide that

5372
03:28:37,158 --> 03:28:37,408
economic impact to Oklahoma so

5373
03:28:39,191 --> 03:28:39,441
whether it's valuation or

5374
03:28:41,158 --> 03:28:41,408
whether it is the tax exemption

5375
03:28:43,158 --> 03:28:43,408
itself being approved at

5376
03:28:46,658 --> 03:28:46,908
those assessor's offices we

5377
03:28:48,624 --> 03:28:48,874
need predictable policy in order

5378
03:28:50,658 --> 03:28:50,908
to have predictable investment

5379
03:28:51,324 --> 03:28:51,574
thank you so much

5380
03:28:53,358 --> 03:28:53,608
and happy to take any

5381
03:28:53,791 --> 03:28:54,041
questions later.ppreciate it.

5382
03:28:57,124 --> 03:28:57,374
thank you for that presentation

5383
03:28:59,091 --> 03:28:59,341
that was very helpful and again

5384
03:29:00,858 --> 03:29:01,108
want to thank all of our

5385
03:29:02,858 --> 03:29:03,108
presenters today for for sharing

5386
03:29:04,591 --> 03:29:04,841
and with that madam chair we

5387
03:29:05,191 --> 03:29:05,441
turn over to you if you'd like

5388
03:29:06,891 --> 03:29:07,141
to take any questions or

5389
03:29:08,391 --> 03:29:08,641
conclude from there.

5390
03:29:10,624 --> 03:29:10,874
no thank you think we're we're

5391
03:29:11,324 --> 03:29:11,574
going to take a quick

5392
03:29:12,891 --> 03:29:13,141
breaksenator Peterson is here

5393
03:29:14,624 --> 03:29:14,874
thank you all for coming today

5394
03:29:16,658 --> 03:29:16,908
lots of information this is

5395
03:29:17,358 --> 03:29:17,608
complicated and it's definitely

5396
03:29:18,624 --> 03:29:18,874
something that we need to be

5397
03:29:20,391 --> 03:29:20,641
having conversations about

5398
03:29:21,124 --> 03:29:21,374
because we for sure want

5399
03:29:22,658 --> 03:29:22,908
workforce housing and we don't

5400
03:29:24,658 --> 03:29:24,908
want to accidentally mess things

5401
03:29:25,324 --> 03:29:25,574
up so thank youure

5402
03:29:26,858 --> 03:29:27,108
we'll be back here

5403
03:29:28,858 --> 03:29:29,108
for Senator Peterson at 130.

5404
03:38:30,458 --> 03:38:30,708
OK everyone we are now going to

5405
03:38:32,424 --> 03:38:32,674
turn the floor over to senator

5406
03:38:34,424 --> 03:38:34,674
Peterson thanks for coming

5407
03:38:36,424 --> 03:38:36,674
today. Always good to see you

5408
03:38:38,924 --> 03:38:39,174
and we are praying for rain for

5409
03:38:40,658 --> 03:38:40,908
everyone and you are on the list

5410
03:38:43,291 --> 03:38:43,541
too. right with that most of

5411
03:38:44,691 --> 03:38:44,941
y'all have been in here all day

5412
03:38:45,358 --> 03:38:45,608
just some quick housekeeping

5413
03:38:46,991 --> 03:38:47,241
this is informal you don't have

5414
03:38:48,691 --> 03:38:48,941
to work through the chair.

5415
03:38:50,424 --> 03:38:50,674
Senator Peterson I'll let you

5416
03:38:51,224 --> 03:38:51,474
run the meeting and turn it over

5417
03:38:52,924 --> 03:38:53,174
to you and we'll just have a

5418
03:38:53,524 --> 03:38:53,774
great conversation. I do have a

5419
03:38:54,158 --> 03:38:54,408
hard stop

5420
03:38:57,158 --> 03:38:57,408
at2:30 so I'm gonna keep us on

5421
03:38:58,658 --> 03:38:58,908
on track but now the floorage

5422
03:38:59,258 --> 03:38:59,508
yours

5423
03:39:02,924 --> 03:39:03,174
thank you madam chairir and

5424
03:39:04,424 --> 03:39:04,674
thank you for allowing this

5425
03:39:06,391 --> 03:39:06,641
interim study to be held today

5426
03:39:07,191 --> 03:39:07,441
and thank you for everybody

5427
03:39:08,758 --> 03:39:09,008
that's in attendance that are

5428
03:39:09,391 --> 03:39:09,641
interested in this topic

5429
03:39:12,391 --> 03:39:12,641
this is actually a requested by

5430
03:39:14,391 --> 03:39:14,641
the department of commerce and

5431
03:39:15,158 --> 03:39:15,408
currently there are two bills

5432
03:39:16,891 --> 03:39:17,141
with conflicting language

5433
03:39:20,391 --> 03:39:20,641
regarding foreign adversaries

5434
03:39:22,624 --> 03:39:22,874
and national security and how

5435
03:39:23,324 --> 03:39:23,574
those two

5436
03:39:26,391 --> 03:39:26,641
are kind of different and

5437
03:39:26,991 --> 03:39:27,241
spelled out in two different

5438
03:39:27,591 --> 03:39:27,841
bills and we're here to address

5439
03:39:28,258 --> 03:39:28,508
that

5440
03:39:30,491 --> 03:39:30,741
commerce engages daily with

5441
03:39:33,158 --> 03:39:33,408
counties utilities title

5442
03:39:35,424 --> 03:39:35,674
companies and economic

5443
03:39:36,958 --> 03:39:37,208
development organizations that

5444
03:39:39,191 --> 03:39:39,441
want to follow the law and keep

5445
03:39:41,191 --> 03:39:41,441
projects moving right now two

5446
03:39:42,924 --> 03:39:43,174
statutes use different

5447
03:39:44,624 --> 03:39:44,874
frameworks in place the

5448
03:39:46,924 --> 03:39:47,174
department of of commerce at the

5449
03:39:48,391 --> 03:39:48,641
center of intake without giving

5450
03:39:49,191 --> 03:39:49,441
them authority to make

5451
03:39:49,724 --> 03:39:49,974
determinations

5452
03:39:52,691 --> 03:39:52,941
they're proposing a fix to be

5453
03:39:54,924 --> 03:39:55,174
considered today at this time

5454
03:39:56,924 --> 03:39:57,174
I'll turn the study over to

5455
03:40:00,391 --> 03:40:00,641
Jennifer Gover, little son the

5456
03:40:01,191 --> 03:40:01,441
state federal legislative

5457
03:40:03,191 --> 03:40:03,441
liaison with the Oklahoma

5458
03:40:03,758 --> 03:40:04,008
Department of Commerce.

5459
03:40:06,891 --> 03:40:07,141
thank you and thank you madam

5460
03:40:08,624 --> 03:40:08,874
chair for listening to our

5461
03:40:10,624 --> 03:40:10,874
our interim study this afternoon

5462
03:40:12,591 --> 03:40:12,841
we have been working on this for

5463
03:40:13,358 --> 03:40:13,608
a while this is something

5464
03:40:16,391 --> 03:40:16,641
that we're requesting an

5465
03:40:18,391 --> 03:40:18,641
amendment to some legislation I

5466
03:40:19,224 --> 03:40:19,474
wanted to introduce Mark

5467
03:40:20,658 --> 03:40:20,908
Wells who's our director of

5468
03:40:22,924 --> 03:40:23,174
global trade and and investments

5469
03:40:24,924 --> 03:40:25,174
and he and his team has come

5470
03:40:26,424 --> 03:40:26,674
across something that's very

5471
03:40:27,024 --> 03:40:27,274
interesting and we're looking

5472
03:40:28,424 --> 03:40:28,674
forward to working on this with

5473
03:40:29,291 --> 03:40:29,541
the senate so at this time I'll

5474
03:40:29,924 --> 03:40:30,174
pass it over to Marc.

5475
03:40:33,324 --> 03:40:33,574
thank you very much madam

5476
03:40:34,624 --> 03:40:34,874
chairir thank you Senator

5477
03:40:35,258 --> 03:40:35,508
Peterson thank you very much for

5478
03:40:38,624 --> 03:40:38,874
your support on this project

5479
03:40:41,124 --> 03:40:41,374
very simply we are bringing

5480
03:40:43,124 --> 03:40:43,374
this bill before you today or

5481
03:40:46,658 --> 03:40:46,908
this SB893 that had been

5482
03:40:48,891 --> 03:40:49,141
passed and just suggest

5483
03:40:50,658 --> 03:40:50,908
making a couple of observations

5484
03:40:52,891 --> 03:40:53,141
and suggestions and I have a

5485
03:40:54,891 --> 03:40:55,141
presentation to try to put it

5486
03:40:56,891 --> 03:40:57,141
into some context and I'll just

5487
03:40:59,124 --> 03:40:59,374
say that my comments are

5488
03:41:00,458 --> 03:41:00,708
mainly about

5489
03:41:04,391 --> 03:41:04,641
section four which pertains to

5490
03:41:06,858 --> 03:41:07,108
national security I do have a

5491
03:41:08,391 --> 03:41:08,641
background in national security.

5492
03:41:10,391 --> 03:41:10,641
I'm joined by Rob Wilcox from

5493
03:41:12,391 --> 03:41:12,641
the department of Commerce also

5494
03:41:14,858 --> 03:41:15,108
a veteran and a deep background

5495
03:41:15,591 --> 03:41:15,841
in that those issues

5496
03:41:19,124 --> 03:41:19,374
so if I could just say talk for

5497
03:41:20,891 --> 03:41:21,141
just a moment about the

5498
03:41:22,891 --> 03:41:23,141
importance of foreign direct

5499
03:41:26,624 --> 03:41:26,874
investment in Oklahoma it is

5500
03:41:27,224 --> 03:41:27,474
already a very important part of

5501
03:41:30,424 --> 03:41:30,674
our economic base majority

5502
03:41:32,424 --> 03:41:32,674
owned US affiliates of foreign

5503
03:41:34,924 --> 03:41:35,174
multinational enterprises employ

5504
03:41:39,158 --> 03:41:39,408
about60,000 Oklahomans as of2024

5505
03:41:44,658 --> 03:41:44,908
and that includes about25,700

5506
03:41:46,658 --> 03:41:46,908
jobs in manufacturing OK and

5507
03:41:48,658 --> 03:41:48,908
over the last five years the

5508
03:41:50,691 --> 03:41:50,941
foreign direct investment has

5509
03:41:51,324 --> 03:41:51,574
the commitments on foreign

5510
03:41:53,191 --> 03:41:53,441
direct investment has exceeded6

5511
03:41:55,191 --> 03:41:55,441
billion dollars so roughly

5512
03:41:59,191 --> 03:41:59,441
about5400 jobs are related to

5513
03:42:00,924 --> 03:42:01,174
foreign direct investment at an

5514
03:42:05,224 --> 03:42:05,474
average wage of65,500. Now

5515
03:42:07,191 --> 03:42:07,441
Oklahoma when you compare it to

5516
03:42:08,958 --> 03:42:09,208
other states that are are

5517
03:42:09,524 --> 03:42:09,774
competitors

5518
03:42:12,924 --> 03:42:13,174
they actually have a lower stock

5519
03:42:15,158 --> 03:42:15,408
in FDI or foreign direct

5520
03:42:18,391 --> 03:42:18,641
investment and what we have

5521
03:42:19,458 --> 03:42:19,708
attracted is unusually

5522
03:42:22,424 --> 03:42:22,674
concentrated in manufacturing

5523
03:42:25,191 --> 03:42:25,441
and so roughly43% of foreign

5524
03:42:27,191 --> 03:42:27,441
affiliate employment in Oklahoma

5525
03:42:29,191 --> 03:42:29,441
is in manufacturing and that's

5526
03:42:32,658 --> 03:42:32,908
compared with about 35%34%

5527
03:42:34,691 --> 03:42:34,941
nationally and that matters

5528
03:42:36,658 --> 03:42:36,908
because these are the areas

5529
03:42:38,424 --> 03:42:38,674
where we are focused most in

5530
03:42:39,158 --> 03:42:39,408
commerce our strategy to attract

5531
03:42:43,191 --> 03:42:43,441
advanced manufacturing

5532
03:42:46,424 --> 03:42:46,674
aerospace, energy equipment

5533
03:42:47,191 --> 03:42:47,441
critical mineral processing and

5534
03:42:49,391 --> 03:42:49,641
other capital intensive sector

5535
03:42:51,224 --> 03:42:51,474
so this is exactly where we want

5536
03:42:52,924 --> 03:42:53,174
to grow and foreign direct

5537
03:42:54,924 --> 03:42:55,174
investment plays an important

5538
03:42:57,191 --> 03:42:57,441
part. These companies don't only

5539
03:42:59,191 --> 03:42:59,441
employ Oklahomans but they also

5540
03:43:01,191 --> 03:43:01,441
create economic opportunities

5541
03:43:03,191 --> 03:43:03,441
for Oklahoma suppliers working

5542
03:43:05,158 --> 03:43:05,408
in the same industry they bring

5543
03:43:08,391 --> 03:43:08,641
capital technology and knowhow

5544
03:43:09,158 --> 03:43:09,408
that can raise productivity and

5545
03:43:09,824 --> 03:43:10,074
increase the value of

5546
03:43:12,658 --> 03:43:12,908
Oklahoma's economy and so the

5547
03:43:14,624 --> 03:43:14,874
policy challenges really not

5548
03:43:16,658 --> 03:43:16,908
about whether or not foreign

5549
03:43:18,624 --> 03:43:18,874
investment is good or not what

5550
03:43:19,391 --> 03:43:19,641
we want to say is Oklahoma

5551
03:43:22,424 --> 03:43:22,674
welcomes foreign investment but

5552
03:43:23,224 --> 03:43:23,474
we want investment that narrows

5553
03:43:24,958 --> 03:43:25,208
the risks that might be

5554
03:43:26,658 --> 03:43:26,908
associated with ownership by

5555
03:43:28,924 --> 03:43:29,174
foreign adversaries and that is

5556
03:43:30,658 --> 03:43:30,908
really the topic that we wanted

5557
03:43:32,658 --> 03:43:32,908
to talk about what happens when

5558
03:43:34,891 --> 03:43:35,141
a country that is considered a

5559
03:43:38,391 --> 03:43:38,641
foreign adversary tries to

5560
03:43:39,191 --> 03:43:39,441
invest in the United States.

5561
03:43:39,858 --> 03:43:40,108
there is a federal government

5562
03:43:44,391 --> 03:43:44,641
system that is long established

5563
03:43:46,891 --> 03:43:47,141
since 1975 theittee on Foreign

5564
03:43:48,891 --> 03:43:49,141
Investment in the United States

5565
03:43:50,924 --> 03:43:51,174
it's known asyus it's run by the

5566
03:43:52,891 --> 03:43:53,141
department of Treasury and it is

5567
03:43:55,191 --> 03:43:55,441
a committee with members of the

5568
03:43:56,658 --> 03:43:56,908
intelligence community, the

5569
03:44:00,891 --> 03:44:01,141
military as well as commerce and

5570
03:44:02,924 --> 03:44:03,174
other law enforcement agencies

5571
03:44:04,891 --> 03:44:05,141
and what they do is review

5572
03:44:05,524 --> 03:44:05,774
transactions

5573
03:44:09,091 --> 03:44:09,341
they can they review any kind

5574
03:44:12,624 --> 03:44:12,874
of foreign transaction that

5575
03:44:15,158 --> 03:44:15,408
would give control of

5576
03:44:17,158 --> 03:44:17,408
certain technologies or

5577
03:44:21,124 --> 03:44:21,374
properties to US foreign uh'm

5578
03:44:23,091 --> 03:44:23,341
sorry to foreign businesses be

5579
03:44:25,091 --> 03:44:25,341
it a foreign adversary or just

5580
03:44:28,391 --> 03:44:28,641
any old country that is

5581
03:44:29,091 --> 03:44:29,341
outside of the United States so

5582
03:44:32,391 --> 03:44:32,641
it can improve a transaction it

5583
03:44:34,391 --> 03:44:34,641
can require mitigation can it

5584
03:44:35,458 --> 03:44:35,708
can say we don't like the way

5585
03:44:36,091 --> 03:44:36,341
that this deal is structured and

5586
03:44:38,658 --> 03:44:38,908
they could they could request it

5587
03:44:40,658 --> 03:44:40,908
being changed they could ask

5588
03:44:42,391 --> 03:44:42,641
for a divestiture and in some

5589
03:44:44,624 --> 03:44:44,874
very rare cases the president

5590
03:44:46,858 --> 03:44:47,108
himself can order that an

5591
03:44:48,891 --> 03:44:49,141
investment be unwound and it

5592
03:44:50,858 --> 03:44:51,108
has happened a couple of times

5593
03:44:54,624 --> 03:44:54,874
and so what I am just trying

5594
03:44:57,091 --> 03:44:57,341
to impart is that this is it

5595
03:44:59,391 --> 03:44:59,641
already exists it is a a riskbas

5596
03:45:02,424 --> 03:45:02,674
look at transactions. I'm not

5597
03:45:04,391 --> 03:45:04,641
actually talking about

5598
03:45:05,391 --> 03:45:05,641
physical area just yet which our

5599
03:45:06,058 --> 03:45:06,308
law

5600
03:45:07,591 --> 03:45:07,841
gets into so

5601
03:45:11,158 --> 03:45:11,408
so what we're not trying to

5602
03:45:13,158 --> 03:45:13,408
do is recreate this process this

5603
03:45:14,891 --> 03:45:15,141
already exists it serves the

5604
03:45:18,624 --> 03:45:18,874
entire country and as

5605
03:45:21,124 --> 03:45:21,374
opposed to and the federal

5606
03:45:23,158 --> 03:45:23,408
government has the you know the

5607
03:45:25,124 --> 03:45:25,374
authority over our national

5608
03:45:25,691 --> 03:45:25,941
security

5609
03:45:27,191 --> 03:45:27,441
the state has the authority

5610
03:45:29,158 --> 03:45:29,408
over property ownership and here

5611
03:45:30,958 --> 03:45:31,208
is where maybe some of the

5612
03:45:32,624 --> 03:45:32,874
tension lies so

5613
03:45:35,191 --> 03:45:35,441
I have presented you all with

5614
03:45:37,191 --> 03:45:37,441
a paper that shows this I don't

5615
03:45:38,958 --> 03:45:39,208
have a slide on it for the

5616
03:45:41,191 --> 03:45:41,441
audience but the what we did was

5617
03:45:44,391 --> 03:45:44,641
we took SB893 and we took

5618
03:45:46,458 --> 03:45:46,708
thecifius currentyus regulations

5619
03:45:48,391 --> 03:45:48,641
and we mapped it out. So for

5620
03:45:51,158 --> 03:45:51,408
uhyus the k there are there is a

5621
03:45:53,224 --> 03:45:53,474
geographic jurisdiction and

5622
03:45:54,924 --> 03:45:55,174
there's a transactional

5623
03:45:58,424 --> 03:45:58,674
jurisdiction and the the current

5624
03:46:00,991 --> 03:46:01,241
list of sensitive sites as

5625
03:46:02,691 --> 03:46:02,941
defined by the federal

5626
03:46:03,224 --> 03:46:03,474
government will give

5627
03:46:06,691 --> 03:46:06,941
you 100 mile radius around

5628
03:46:09,158 --> 03:46:09,408
Tinker Alti and Vance Air Force

5629
03:46:11,158 --> 03:46:11,408
bases and a one mile radius

5630
03:46:12,891 --> 03:46:13,141
around Fort Sill and the

5631
03:46:15,191 --> 03:46:15,441
Mccalister army ammunition

5632
03:46:16,958 --> 03:46:17,208
plant. there may be others there

5633
03:46:18,658 --> 03:46:18,908
that you consider sensitive this

5634
03:46:20,658 --> 03:46:20,908
is the current list that

5635
03:46:22,391 --> 03:46:22,641
thetreasury department is

5636
03:46:23,158 --> 03:46:23,408
working from it is informed by

5637
03:46:26,924 --> 03:46:27,174
the department of war. Now what

5638
03:46:28,924 --> 03:46:29,174
that means is within that

5639
03:46:32,658 --> 03:46:32,908
within those zonesyeus has a

5640
03:46:33,224 --> 03:46:33,474
geographic

5641
03:46:36,424 --> 03:46:36,674
jurisdiction over a

5642
03:46:37,191 --> 03:46:37,441
transaction so if some company

5643
03:46:39,191 --> 03:46:39,441
wants to come in and be in that

5644
03:46:42,391 --> 03:46:42,641
zone if it's if it is any

5645
03:46:44,658 --> 03:46:44,908
kind of foreign countryytheus

5646
03:46:46,658 --> 03:46:46,908
has jurisdiction in certain

5647
03:46:48,658 --> 03:46:48,908
cases those are going to be

5648
03:46:50,658 --> 03:46:50,908
mandatory I should have

5649
03:46:52,391 --> 03:46:52,641
pointed out at the top I'm not a

5650
03:46:54,658 --> 03:46:54,908
lawyer so lawyers make a

5651
03:46:56,391 --> 03:46:56,641
lot of money working through

5652
03:46:58,658 --> 03:46:58,908
thesecius cases and I have

5653
03:47:00,424 --> 03:47:00,674
talked to several of them as

5654
03:47:02,424 --> 03:47:02,674
I've worked through this

5655
03:47:02,991 --> 03:47:03,241
process but as my

5656
03:47:04,458 --> 03:47:04,708
understanding of it is

5657
03:47:07,158 --> 03:47:07,408
the the other thing that they

5658
03:47:10,391 --> 03:47:10,641
have jurisdiction is any

5659
03:47:12,624 --> 03:47:12,874
transaction over certain

5660
03:47:16,391 --> 03:47:16,641
types of of technology

5661
03:47:18,658 --> 03:47:18,908
critical infrastructure and

5662
03:47:20,658 --> 03:47:20,908
in sensitive personal data. So

5663
03:47:22,691 --> 03:47:22,941
even aside from the zones that

5664
03:47:25,191 --> 03:47:25,441
are marked by the yeus map

5665
03:47:26,658 --> 03:47:26,908
there could be other

5666
03:47:27,158 --> 03:47:27,408
transactions that would be

5667
03:47:28,891 --> 03:47:29,141
reviewable by yeus

5668
03:47:33,224 --> 03:47:33,474
so SB893 operates differently.

5669
03:47:36,391 --> 03:47:36,641
it prohibits a foreign principle

5670
03:47:38,658 --> 03:47:38,908
from from a foreign adversary

5671
03:47:40,658 --> 03:47:40,908
country from directly or

5672
03:47:42,858 --> 03:47:43,108
indirectly purchasing holding

5673
03:47:44,924 --> 03:47:45,174
renting or otherwise controlling

5674
03:47:48,391 --> 03:47:48,641
real property within 10 miles of

5675
03:47:50,624 --> 03:47:50,874
a military base or installation

5676
03:47:53,158 --> 03:47:53,408
a military operating area or

5677
03:47:55,424 --> 03:47:55,674
other critical infrastructure

5678
03:47:56,924 --> 03:47:57,174
so we know where the bases are

5679
03:47:58,691 --> 03:47:58,941
those are a lot more than what

5680
03:47:59,358 --> 03:47:59,608
just what we have in

5681
03:48:02,958 --> 03:48:03,208
theius map and the critical

5682
03:48:04,658 --> 03:48:04,908
infrastructure definition in

5683
03:48:08,624 --> 03:48:08,874
SB893 is very broad so I mean if

5684
03:48:10,391 --> 03:48:10,641
you look we decided we couldn't

5685
03:48:12,858 --> 03:48:13,108
even run all of it on the the

5686
03:48:14,891 --> 03:48:15,141
GIs technology we had but we put

5687
03:48:16,924 --> 03:48:17,174
as much of it in as we could and

5688
03:48:18,658 --> 03:48:18,908
it pretty much blacks out the

5689
03:48:22,391 --> 03:48:22,641
entire state as far as a

5690
03:48:23,158 --> 03:48:23,408
prohibition on foreign

5691
03:48:24,891 --> 03:48:25,141
adversaries owning or

5692
03:48:25,458 --> 03:48:25,708
controlling directly or

5693
03:48:28,691 --> 03:48:28,941
indirectly any real property. So

5694
03:48:29,358 --> 03:48:29,608
and I didn't even get to what a

5695
03:48:30,024 --> 03:48:30,274
military

5696
03:48:32,524 --> 03:48:32,774
operation area is or anything

5697
03:48:33,258 --> 03:48:33,508
like that so it is let's just

5698
03:48:36,391 --> 03:48:36,641
say that the law effectively

5699
03:48:37,191 --> 03:48:37,441
prohibits any of this action

5700
03:48:40,391 --> 03:48:40,641
within the confines of the state

5701
03:48:42,891 --> 03:48:43,141
so not trying to argue one

5702
03:48:43,458 --> 03:48:43,708
way or the other here just

5703
03:48:45,158 --> 03:48:45,408
pointing out that that is the

5704
03:48:48,391 --> 03:48:48,641
effective impact of the

5705
03:48:50,924 --> 03:48:51,174
legislation so restrictions

5706
03:48:52,624 --> 03:48:52,874
on land ownership in Oklahoma

5707
03:48:54,924 --> 03:48:55,174
are not new. we all know that

5708
03:48:56,658 --> 03:48:56,908
it's the constitution has long

5709
03:48:58,891 --> 03:48:59,141
limited land ownership by non-S

5710
03:48:59,558 --> 03:48:59,808
citizens

5711
03:49:02,224 --> 03:49:02,474
it's subject to a bona fide

5712
03:49:04,691 --> 03:49:04,941
residency exception initle60

5713
03:49:05,291 --> 03:49:05,541
implements that constitutional

5714
03:49:05,958 --> 03:49:06,208
rule

5715
03:49:08,658 --> 03:49:08,908
there's also section three of

5716
03:49:10,658 --> 03:49:10,908
this bill which I'm not here to

5717
03:49:11,291 --> 03:49:11,541
address today but it also

5718
03:49:12,891 --> 03:49:13,141
restricted corporate farming and

5719
03:49:17,124 --> 03:49:17,374
ranching since 1978 so they

5720
03:49:19,124 --> 03:49:19,374
these laws do have apply to a

5721
03:49:21,191 --> 03:49:21,441
foreign corporation and it

5722
03:49:22,958 --> 03:49:23,208
can include a a corporation

5723
03:49:25,124 --> 03:49:25,374
organized outside of Oklahoma so

5724
03:49:27,158 --> 03:49:27,408
the definition there would

5725
03:49:30,391 --> 03:49:30,641
also include a oh let's just

5726
03:49:31,124 --> 03:49:31,374
say a company from Texas would

5727
03:49:32,691 --> 03:49:32,941
be considered foreign to an

5728
03:49:34,724 --> 03:49:34,974
Oklahoman under that law. So

5729
03:49:35,324 --> 03:49:35,574
these restrictions have never

5730
03:49:35,991 --> 03:49:36,241
really amounted to a

5731
03:49:38,991 --> 03:49:39,241
general prohibition on

5732
03:49:40,924 --> 03:49:41,174
commercial activity in Oklahoma

5733
03:49:43,191 --> 03:49:43,441
by companies from foreign

5734
03:49:45,191 --> 03:49:45,441
countries the state corporate

5735
03:49:47,224 --> 03:49:47,474
law permits out of state and

5736
03:49:49,424 --> 03:49:49,674
foreign companies to to

5737
03:49:50,691 --> 03:49:50,941
qualify to do business here in

5738
03:49:52,924 --> 03:49:53,174
corporations generally may own

5739
03:49:55,158 --> 03:49:55,408
real estate necessary to conduct

5740
03:49:56,924 --> 03:49:57,174
lawful businessssentially it's

5741
03:49:59,191 --> 03:49:59,441
just if they engage in

5742
03:50:01,124 --> 03:50:01,374
interstate commerce they are

5743
03:50:02,958 --> 03:50:03,208
able foreign companies are able

5744
03:50:05,158 --> 03:50:05,408
to operate and own land in

5745
03:50:05,691 --> 03:50:05,941
uhokklahoma so there

5746
03:50:08,658 --> 03:50:08,908
had been a shift recently in the

5747
03:50:10,658 --> 03:50:10,908
United States toward this

5748
03:50:12,391 --> 03:50:12,641
national security question of

5749
03:50:14,658 --> 03:50:14,908
should we be protecting areas

5750
03:50:17,158 --> 03:50:17,408
close to sensitive sites as I

5751
03:50:18,891 --> 03:50:19,141
mentioned Oklahoma has these

5752
03:50:21,191 --> 03:50:21,441
military bases but we are also a

5753
03:50:25,191 --> 03:50:25,441
hub for energy and

5754
03:50:28,658 --> 03:50:28,908
pipelines all of those of course

5755
03:50:30,391 --> 03:50:30,641
are extremely important to us

5756
03:50:31,058 --> 03:50:31,308
and we want to make sure we're

5757
03:50:32,691 --> 03:50:32,941
doing our part to protect

5758
03:50:35,191 --> 03:50:35,441
against vulnerabilities so SB893

5759
03:50:35,824 --> 03:50:36,074
which takes

5760
03:50:39,191 --> 03:50:39,441
effect on this coming July 1st

5761
03:50:42,391 --> 03:50:42,641
it moved further to create

5762
03:50:43,224 --> 03:50:43,474
restrictions tied to

5763
03:50:44,891 --> 03:50:45,141
agricultural land that's section

5764
03:50:48,391 --> 03:50:48,641
3 and then section four this

5765
03:50:49,191 --> 03:50:49,441
military geography and critical

5766
03:50:51,158 --> 03:50:51,408
infrastructure that I

5767
03:50:52,491 --> 03:50:52,741
mentioned earlier

5768
03:50:55,158 --> 03:50:55,408
let me just say a word about

5769
03:50:57,358 --> 03:50:57,608
some of the other states that

5770
03:50:59,124 --> 03:50:59,374
have passed laws similar to

5771
03:51:01,158 --> 03:51:01,408
this. I'll focus on Florida,

5772
03:51:03,158 --> 03:51:03,408
Texas and Arkansas. I'll say

5773
03:51:04,891 --> 03:51:05,141
there's I think Nebraska is the

5774
03:51:06,391 --> 03:51:06,641
only other one that's really

5775
03:51:07,024 --> 03:51:07,274
gotten the law through so

5776
03:51:09,024 --> 03:51:09,274
Oklahoma is really a a pioneer

5777
03:51:10,891 --> 03:51:11,141
in this area. I think across

5778
03:51:12,658 --> 03:51:12,908
the country about40 states have

5779
03:51:14,891 --> 03:51:15,141
seen legislation proposed in

5780
03:51:16,691 --> 03:51:16,941
this area but these are the ones

5781
03:51:18,924 --> 03:51:19,174
that have been successful so

5782
03:51:20,691 --> 03:51:20,941
Florida adopted their framework

5783
03:51:22,758 --> 03:51:23,008
in2023. they restrict certain

5784
03:51:23,424 --> 03:51:23,674
foreign

5785
03:51:26,391 --> 03:51:26,641
principles from acquiring

5786
03:51:27,158 --> 03:51:27,408
agricultural land and from

5787
03:51:28,891 --> 03:51:29,141
acquiring real property within

5788
03:51:30,658 --> 03:51:30,908
10 miles of military

5789
03:51:32,391 --> 03:51:32,641
installations and specified

5790
03:51:33,024 --> 03:51:33,274
critical infrastructure

5791
03:51:35,124 --> 03:51:35,374
facilities. Their definition

5792
03:51:36,891 --> 03:51:37,141
and I had an interview with them

5793
03:51:38,624 --> 03:51:38,874
their definition is is pretty

5794
03:51:40,924 --> 03:51:41,174
confined and not nearly as

5795
03:51:44,391 --> 03:51:44,641
expansive as what we have in

5796
03:51:45,158 --> 03:51:45,408
their case they created their

5797
03:51:48,391 --> 03:51:48,641
own law their own list of

5798
03:51:49,158 --> 03:51:49,408
foreign adversaries is

5799
03:51:51,158 --> 03:51:51,408
determined by the governor and

5800
03:51:52,724 --> 03:51:52,974
Florida commerce established an

5801
03:51:53,391 --> 03:51:53,641
office called Se

5802
03:51:56,858 --> 03:51:57,108
cu re Florida which with a

5803
03:51:58,658 --> 03:51:58,908
staff of six monitors foreign

5804
03:52:02,658 --> 03:52:02,908
ownership in Florida so there

5805
03:52:04,858 --> 03:52:05,108
was a legal challenge to this

5806
03:52:08,391 --> 03:52:08,641
law again not a lawyer but

5807
03:52:10,658 --> 03:52:10,908
it does run afoul of there's

5808
03:52:12,391 --> 03:52:12,641
allegations that it violates the

5809
03:52:14,658 --> 03:52:14,908
equal protection clause of the

5810
03:52:18,391 --> 03:52:18,641
US Constitution of the

5811
03:52:20,624 --> 03:52:20,874
singling out of nationalities

5812
03:52:21,258 --> 03:52:21,508
and so

5813
03:52:24,658 --> 03:52:24,908
states have relied on other

5814
03:52:26,891 --> 03:52:27,141
people making the lists other so

5815
03:52:28,491 --> 03:52:28,741
Florida went ahead and made

5816
03:52:29,058 --> 03:52:29,308
their own list

5817
03:52:32,391 --> 03:52:32,641
this has not been tested

5818
03:52:34,624 --> 03:52:34,874
fully in federal courts there

5819
03:52:37,124 --> 03:52:37,374
have been challenges but so

5820
03:52:38,891 --> 03:52:39,141
far most have been dismissed.

5821
03:52:40,624 --> 03:52:40,874
I'll talk about one other but

5822
03:52:41,391 --> 03:52:41,641
but others have been dismissed

5823
03:52:42,058 --> 03:52:42,308
for lack of standing

5824
03:52:47,191 --> 03:52:47,441
ex enacted SB17 in2025 which

5825
03:52:48,891 --> 03:52:49,141
restricted real property

5826
03:52:51,158 --> 03:52:51,408
acquisitions by governments

5827
03:52:53,158 --> 03:52:53,408
companies organizations and

5828
03:52:55,191 --> 03:52:55,441
individuals connected to

5829
03:52:56,658 --> 03:52:56,908
designated countries in this

5830
03:52:59,124 --> 03:52:59,374
case they use the the

5831
03:53:00,391 --> 03:53:00,641
director of national

5832
03:53:01,158 --> 03:53:01,408
intelligence annual threatat

5833
03:53:03,158 --> 03:53:03,408
assessments report that comes

5834
03:53:05,124 --> 03:53:05,374
from the federal intelligence

5835
03:53:08,658 --> 03:53:08,908
community and it also allows

5836
03:53:10,658 --> 03:53:10,908
the governor to assign other

5837
03:53:12,658 --> 03:53:12,908
countries and again they had

5838
03:53:13,291 --> 03:53:13,541
another challenge to that law

5839
03:53:16,391 --> 03:53:16,641
and that has been struck down

5840
03:53:18,891 --> 03:53:19,141
for the the challenge was struck

5841
03:53:20,658 --> 03:53:20,908
down for a lack of standing so

5842
03:53:22,391 --> 03:53:22,641
some of these questions have not

5843
03:53:23,124 --> 03:53:23,374
really been tested. I want to

5844
03:53:24,424 --> 03:53:24,674
just mention Arkansas because

5845
03:53:26,891 --> 03:53:27,141
it's a a very interesting

5846
03:53:28,891 --> 03:53:29,141
lesson here in Arkansas so they

5847
03:53:32,391 --> 03:53:32,641
used a a foreign adversary

5848
03:53:35,158 --> 03:53:35,408
list derived from the

5849
03:53:36,724 --> 03:53:36,974
international traffic and arms

5850
03:53:40,658 --> 03:53:40,908
regulations or the ITAR and

5851
03:53:42,424 --> 03:53:42,674
that drew a legal challenge and

5852
03:53:43,091 --> 03:53:43,341
the judge sustained it

5853
03:53:45,191 --> 03:53:45,441
because the purpose of the ITarR

5854
03:53:48,924 --> 03:53:49,174
law is related to selling

5855
03:53:50,924 --> 03:53:51,174
arms abroad which countries can

5856
03:53:53,024 --> 03:53:53,274
and can and you you can and

5857
03:53:53,558 --> 03:53:53,808
cannot sell arms to

5858
03:53:56,658 --> 03:53:56,908
so when they when the judge

5859
03:53:57,224 --> 03:53:57,474
looked at it they said this

5860
03:53:58,891 --> 03:53:59,141
really has nothing to do with

5861
03:54:01,158 --> 03:54:01,408
state property ownership and

5862
03:54:03,124 --> 03:54:03,374
they struck it down. So I think

5863
03:54:04,691 --> 03:54:04,941
the lesson that Oklahoma takes

5864
03:54:06,491 --> 03:54:06,741
here is that the

5865
03:54:09,191 --> 03:54:09,441
the purpose of the law that

5866
03:54:10,658 --> 03:54:10,908
we're using we don't want to

5867
03:54:12,891 --> 03:54:13,141
name our own I think based on

5868
03:54:14,424 --> 03:54:14,674
some of the arguments I've

5869
03:54:16,658 --> 03:54:16,908
already said and so we do want

5870
03:54:18,424 --> 03:54:18,674
to defer the question of

5871
03:54:18,958 --> 03:54:19,208
national security foreign

5872
03:54:20,658 --> 03:54:20,908
adversaries to the federal

5873
03:54:24,624 --> 03:54:24,874
government so what we what we

5874
03:54:26,424 --> 03:54:26,674
want to look at here is the

5875
03:54:29,224 --> 03:54:29,474
current language in SB893 which

5876
03:54:32,424 --> 03:54:32,674
the governor signed last May

5877
03:54:34,391 --> 03:54:34,641
so here's what a foreign

5878
03:54:35,424 --> 03:54:35,674
adversary is in that law it's

5879
03:54:40,391 --> 03:54:40,641
countries designated by the

5880
03:54:42,891 --> 03:54:43,141
secret of state as hostile or as

5881
03:54:44,924 --> 03:54:45,174
countries of particular concern

5882
03:54:46,658 --> 03:54:46,908
and the problem is that the

5883
03:54:48,658 --> 03:54:48,908
country of particular concern is

5884
03:54:50,891 --> 03:54:51,141
principally a religious freedom

5885
03:54:53,158 --> 03:54:53,408
designation so this is

5886
03:54:54,658 --> 03:54:54,908
countries that the secretary of

5887
03:54:56,424 --> 03:54:56,674
state identifies as practicing

5888
03:54:58,924 --> 03:54:59,174
religious intolerance it was

5889
03:55:01,224 --> 03:55:01,474
not created as some sort of

5890
03:55:02,658 --> 03:55:02,908
national security investment

5891
03:55:03,324 --> 03:55:03,574
classification

5892
03:55:07,158 --> 03:55:07,408
and it matters the list

5893
03:55:09,124 --> 03:55:09,374
that it can include countries

5894
03:55:10,891 --> 03:55:11,141
for you know strictly

5895
03:55:12,658 --> 03:55:12,908
religious freedom questions

5896
03:55:14,924 --> 03:55:15,174
I'll just say currently Saudi

5897
03:55:16,658 --> 03:55:16,908
Arabia and Nigeria are on that

5898
03:55:18,658 --> 03:55:18,908
list and so if the law were

5899
03:55:20,391 --> 03:55:20,641
enacted it would it would

5900
03:55:21,391 --> 03:55:21,641
implicate any kind of investment

5901
03:55:24,658 --> 03:55:24,908
from from those countries but

5902
03:55:26,924 --> 03:55:27,174
also that the religious freedom

5903
03:55:28,924 --> 03:55:29,174
is informed by a committee that

5904
03:55:31,124 --> 03:55:31,374
meets regularly and they have

5905
03:55:32,658 --> 03:55:32,908
put on their list of

5906
03:55:33,124 --> 03:55:33,374
recommendations which the secret

5907
03:55:33,791 --> 03:55:34,041
of state

5908
03:55:36,391 --> 03:55:36,641
may or may not take that we

5909
03:55:38,624 --> 03:55:38,874
should also add India andvietnam

5910
03:55:40,658 --> 03:55:40,908
to that list and that gets us

5911
03:55:42,891 --> 03:55:43,141
pretty far beyond the sort of

5912
03:55:44,658 --> 03:55:44,908
bad guy country foreign

5913
03:55:47,158 --> 03:55:47,408
adversary countries that we

5914
03:55:49,158 --> 03:55:49,408
typically think of when we

5915
03:55:50,958 --> 03:55:51,208
invoke national security

5916
03:55:51,524 --> 03:55:51,774
concerns

5917
03:55:53,324 --> 03:55:53,574
so

5918
03:55:56,391 --> 03:55:56,641
there is a better fit in federal

5919
03:55:58,358 --> 03:55:58,608
law and existing federal law the

5920
03:56:00,358 --> 03:56:00,608
department of Commerce maintains

5921
03:56:01,391 --> 03:56:01,641
a foreign adversary designation.

5922
03:56:04,858 --> 03:56:05,108
I'll read the site it's 1f

5923
03:56:10,624 --> 03:56:10,874
CFr791.4 and that that list

5924
03:56:14,391 --> 03:56:14,641
will include the

5925
03:56:16,458 --> 03:56:16,708
people's Republic of China, Cuba

5926
03:56:22,658 --> 03:56:22,908
Iran, North Korea, Russia and

5927
03:56:24,891 --> 03:56:25,141
Venezuela but under the Maduro

5928
03:56:28,624 --> 03:56:28,874
regime so that list is I

5929
03:56:30,624 --> 03:56:30,874
think much more much tighter

5930
03:56:32,658 --> 03:56:32,908
and much closer to the concerns

5931
03:56:34,891 --> 03:56:35,141
that we have expressed with

5932
03:56:36,891 --> 03:56:37,141
regard to vulnerabilities of

5933
03:56:39,424 --> 03:56:39,674
being close to a sensitive sites

5934
03:56:40,091 --> 03:56:40,341
so

5935
03:56:44,391 --> 03:56:44,641
the suggestion or the

5936
03:56:45,191 --> 03:56:45,441
recommendation of the department

5937
03:56:47,124 --> 03:56:47,374
of commerce is that we just

5938
03:56:50,358 --> 03:56:50,608
switch out those designations

5939
03:56:52,658 --> 03:56:52,908
take out the CPC language and

5940
03:56:54,391 --> 03:56:54,641
find one that better matches and

5941
03:56:55,158 --> 03:56:55,408
that one is the foreign

5942
03:56:56,891 --> 03:56:57,141
adversary. I'll just say that

5943
03:56:58,624 --> 03:56:58,874
the department of commerce, the

5944
03:57:00,391 --> 03:57:00,641
secret of commerce makes these

5945
03:57:02,624 --> 03:57:02,874
designation and it's typically

5946
03:57:06,891 --> 03:57:07,141
under a protection of of data

5947
03:57:09,458 --> 03:57:09,708
and personal information but

5948
03:57:10,024 --> 03:57:10,274
it is

5949
03:57:12,891 --> 03:57:13,141
much closer I think

5950
03:57:14,658 --> 03:57:14,908
especially since those are

5951
03:57:15,258 --> 03:57:15,508
considered critical

5952
03:57:16,391 --> 03:57:16,641
infrastructure by the federal

5953
03:57:18,924 --> 03:57:19,174
government so that's our

5954
03:57:21,124 --> 03:57:21,374
principal recommendation

5955
03:57:23,158 --> 03:57:23,408
today. I I wanna throw in one

5956
03:57:24,924 --> 03:57:25,174
other item just sort of based on

5957
03:57:27,158 --> 03:57:27,408
our experience in commerce

5958
03:57:30,658 --> 03:57:30,908
we do get questions regularly

5959
03:57:33,158 --> 03:57:33,408
from our partner economic

5960
03:57:35,191 --> 03:57:35,441
development offices or EDOs

5961
03:57:36,958 --> 03:57:37,208
as well as from Oklahoma

5962
03:57:38,891 --> 03:57:39,141
citizens with regard to

5963
03:57:39,391 --> 03:57:39,641
companies that are looking to

5964
03:57:40,058 --> 03:57:40,308
invest in

5965
03:57:43,191 --> 03:57:43,441
Oklahoma and so

5966
03:57:47,358 --> 03:57:47,608
what we've realized is that

5967
03:57:49,191 --> 03:57:49,441
we we would have to let even if

5968
03:57:50,924 --> 03:57:51,174
you had a foreign adversary

5969
03:57:52,424 --> 03:57:52,674
investment you would have to let

5970
03:57:54,424 --> 03:57:54,674
that proceed until we hit a

5971
03:57:55,024 --> 03:57:55,274
certain point where the law

5972
03:57:58,658 --> 03:57:58,908
would get triggered and we've

5973
03:58:00,658 --> 03:58:00,908
had instances where a

5974
03:58:02,424 --> 03:58:02,674
purchaser knew that they were

5975
03:58:03,124 --> 03:58:03,374
dealing with a foreign adversary

5976
03:58:04,891 --> 03:58:05,141
and yet they proceeded anyway

5977
03:58:06,658 --> 03:58:06,908
and they said well show us what

5978
03:58:08,391 --> 03:58:08,641
state incentives that we should

5979
03:58:09,124 --> 03:58:09,374
get and so we realize there

5980
03:58:11,158 --> 03:58:11,408
really isn't a prohibition or an

5981
03:58:12,691 --> 03:58:12,941
ineligibility for state

5982
03:58:13,191 --> 03:58:13,441
incentives in the law so it is

5983
03:58:17,124 --> 03:58:17,374
something that we raise the

5984
03:58:18,891 --> 03:58:19,141
that you all may want to

5985
03:58:20,891 --> 03:58:21,141
examine of do you want to create

5986
03:58:24,891 --> 03:58:25,141
an ineligibility in that law

5987
03:58:26,858 --> 03:58:27,108
so I think the way the way we've

5988
03:58:28,658 --> 03:58:28,908
described it is that an

5989
03:58:31,158 --> 03:58:31,408
applicant for economic

5990
03:58:34,424 --> 03:58:34,674
development incentives should be

5991
03:58:36,424 --> 03:58:36,674
required to disclose relevant

5992
03:58:38,624 --> 03:58:38,874
beneficial ownership and attest

5993
03:58:40,924 --> 03:58:41,174
to compliance with this law

5994
03:58:44,391 --> 03:58:44,641
and this would be an

5995
03:58:46,391 --> 03:58:46,641
eligibility decision not any

5996
03:58:47,091 --> 03:58:47,341
legal determination which you

5997
03:58:48,424 --> 03:58:48,674
know the law there's another

5998
03:58:50,424 --> 03:58:50,674
section with regard to the

5999
03:58:52,891 --> 03:58:53,141
attorney general's role in

6000
03:58:54,691 --> 03:58:54,941
and the attorney general can

6001
03:58:56,658 --> 03:58:56,908
make whatever judicial

6002
03:58:57,158 --> 03:58:57,408
actions they want to take but

6003
03:58:58,658 --> 03:58:58,908
this would just be an

6004
03:59:02,424 --> 03:59:02,674
administrative fix for to

6005
03:59:04,891 --> 03:59:05,141
sync up SB893 with our

6006
03:59:08,858 --> 03:59:09,108
economic incentives I think

6007
03:59:10,858 --> 03:59:11,108
what we want to do here is just

6008
03:59:11,524 --> 03:59:11,774
protect our

6009
03:59:14,391 --> 03:59:14,641
communities from getting too far

6010
03:59:16,624 --> 03:59:16,874
down making down the road on

6011
03:59:18,391 --> 03:59:18,641
a project making some investment

6012
03:59:21,124 --> 03:59:21,374
spending capital at for a

6013
03:59:23,191 --> 03:59:23,441
project that couldn't come to

6014
03:59:26,658 --> 03:59:26,908
fruition anyway due to this

6015
03:59:28,891 --> 03:59:29,141
prohibition and if you have an

6016
03:59:32,391 --> 03:59:32,641
applicant that you know

6017
03:59:34,624 --> 03:59:34,874
does not disclose this or hides

6018
03:59:36,624 --> 03:59:36,874
this material fact they're

6019
03:59:37,224 --> 03:59:37,474
they're and they have received a

6020
03:59:39,124 --> 03:59:39,374
benefit obviously there ought to

6021
03:59:40,891 --> 03:59:41,141
be some repercussion of a

6022
03:59:41,458 --> 03:59:41,708
suspension

6023
03:59:44,624 --> 03:59:44,874
or clawback of the provisions.

6024
03:59:47,391 --> 03:59:47,641
So just to say what what we

6025
03:59:49,158 --> 03:59:49,408
we don't want to do is set up

6026
03:59:51,158 --> 03:59:51,408
a like commerce department

6027
03:59:54,391 --> 03:59:54,641
national security check or

6028
03:59:55,124 --> 03:59:55,374
anything like that we

6029
04:00:00,858 --> 04:00:01,108
we think that umytheus is the

6030
04:00:02,658 --> 04:00:02,908
one that has access to

6031
04:00:04,391 --> 04:00:04,641
intelligence and diplomatic

6032
04:00:05,091 --> 04:00:05,341
reporting and military knowledge

6033
04:00:08,391 --> 04:00:08,641
not stuff that the that a state

6034
04:00:09,358 --> 04:00:09,608
government typically works in we

6035
04:00:11,158 --> 04:00:11,408
we deal with the questions of

6036
04:00:14,658 --> 04:00:14,908
property ownership but we do

6037
04:00:17,158 --> 04:00:17,408
need enough capability to

6038
04:00:18,858 --> 04:00:19,108
understand beneficial

6039
04:00:21,124 --> 04:00:21,374
ownership reco any kind of

6040
04:00:24,391 --> 04:00:24,641
foreign adversary link and so

6041
04:00:25,191 --> 04:00:25,441
this is a practical function of

6042
04:00:25,858 --> 04:00:26,108
economic development that

6043
04:00:28,624 --> 04:00:28,874
I think is developing and so

6044
04:00:30,391 --> 04:00:30,641
it's interesting that we're in

6045
04:00:32,858 --> 04:00:33,108
this moment of with this

6046
04:00:35,191 --> 04:00:35,441
piece of legislation so

6047
04:00:39,124 --> 04:00:39,374
we want communities,

6048
04:00:40,624 --> 04:00:40,874
companies, citizens to be able

6049
04:00:42,658 --> 04:00:42,908
to call us and for us to be able

6050
04:00:44,924 --> 04:00:45,174
to give them advice on this and

6051
04:00:48,391 --> 04:00:48,641
we have done that and we stand

6052
04:00:51,124 --> 04:00:51,374
ready to do that if they are

6053
04:00:52,391 --> 04:00:52,641
think that they are dealing with

6054
04:00:54,924 --> 04:00:55,174
a foreign adversary so

6055
04:00:59,291 --> 04:00:59,541
I'll just say section 3 again

6056
04:01:00,991 --> 04:01:01,241
the agricultural section does

6057
04:01:01,624 --> 04:01:01,874
have a carve out

6058
04:01:06,624 --> 04:01:06,874
for if you have had a yus

6059
04:01:08,824 --> 04:01:09,074
agreement section4 doesn't have

6060
04:01:11,091 --> 04:01:11,341
a carve out so you know the

6061
04:01:12,891 --> 04:01:13,141
conceivably there could be a

6062
04:01:14,858 --> 04:01:15,108
company that isn't agricultural

6063
04:01:18,624 --> 04:01:18,874
that employees there there

6064
04:01:20,891 --> 04:01:21,141
is PRC investment in

6065
04:01:24,391 --> 04:01:24,641
Oklahoma. I would guess

6066
04:01:26,658 --> 04:01:26,908
just based on scans of of

6067
04:01:28,391 --> 04:01:28,641
businesses that that's not more

6068
04:01:30,391 --> 04:01:30,641
than about500 and it's not to

6069
04:01:31,458 --> 04:01:31,708
say that those jobs would

6070
04:01:31,991 --> 04:01:32,241
immediately be

6071
04:01:34,691 --> 04:01:34,941
lost but it might involve a

6072
04:01:36,391 --> 04:01:36,641
company needed to make a a

6073
04:01:39,358 --> 04:01:39,608
divestment decision but if

6074
04:01:40,658 --> 04:01:40,908
one of those companies had

6075
04:01:44,391 --> 04:01:44,641
aifius agreement or had been

6076
04:01:46,891 --> 04:01:47,141
reviewed by yeus and approved

6077
04:01:48,891 --> 04:01:49,141
there currently is no they would

6078
04:01:51,391 --> 04:01:51,641
still be in violation of SB893

6079
04:01:54,424 --> 04:01:54,674
so something to consider but it

6080
04:01:55,058 --> 04:01:55,308
is not the

6081
04:01:57,158 --> 04:01:57,408
it's not a formal

6082
04:02:00,624 --> 04:02:00,874
recommendation on our part so we

6083
04:02:01,324 --> 04:02:01,574
appreciate that you've done the

6084
04:02:02,924 --> 04:02:03,174
major policy work here by

6085
04:02:04,891 --> 04:02:05,141
deciding about foreign adversary

6086
04:02:07,124 --> 04:02:07,374
ownership we just wanted to

6087
04:02:10,624 --> 04:02:10,874
offer up this act of of

6088
04:02:12,391 --> 04:02:12,641
making a a little bit more

6089
04:02:13,124 --> 04:02:13,374
precise a little bit closer to

6090
04:02:15,124 --> 04:02:15,374
the purposes and so

6091
04:02:18,924 --> 04:02:19,174
we think that this these changes

6092
04:02:20,658 --> 04:02:20,908
would preserve Oklahoma's

6093
04:02:22,424 --> 04:02:22,674
ability to recruit legitimate

6094
04:02:24,691 --> 04:02:24,941
foreign investment while giving

6095
04:02:26,424 --> 04:02:26,674
the state a clearer and more

6096
04:02:27,191 --> 04:02:27,441
defensible framework for dealing

6097
04:02:30,391 --> 04:02:30,641
with investment tied to

6098
04:02:32,391 --> 04:02:32,641
designated foreign adversaries.

6099
04:02:33,291 --> 04:02:33,541
thank you very much for your

6100
04:02:33,958 --> 04:02:34,208
attention. I'll turn it back

6101
04:02:35,091 --> 04:02:35,341
hm

6102
04:02:38,658 --> 04:02:38,908
and we'll add it back to send

6103
04:02:40,424 --> 04:02:40,674
it back to Jennifer thank you

6104
04:02:41,158 --> 04:02:41,408
and I wanted to share that

6105
04:02:42,924 --> 04:02:43,174
we've been speaking with Mark

6106
04:02:44,424 --> 04:02:44,674
and his team has been speaking

6107
04:02:45,191 --> 04:02:45,441
with the attorney general as

6108
04:02:46,891 --> 04:02:47,141
well as with Brady so that

6109
04:02:48,691 --> 04:02:48,941
we've been in contact with this

6110
04:02:50,658 --> 04:02:50,908
and they're aware of it they are

6111
04:02:52,924 --> 04:02:53,174
in support of this interim

6112
04:02:54,658 --> 04:02:54,908
study and so just to make it

6113
04:02:56,924 --> 04:02:57,174
really clear and easy we're

6114
04:02:59,191 --> 04:02:59,441
asking for the current language

6115
04:03:02,424 --> 04:03:02,674
to be amended on page 10 it has

6116
04:03:04,658 --> 04:03:04,908
that actual yep the offer of

6117
04:03:05,258 --> 04:03:05,508
what that is and so if

6118
04:03:08,424 --> 04:03:08,674
there's any more questions

6119
04:03:10,658 --> 04:03:10,908
we'll hand it over to Senator

6120
04:03:11,324 --> 04:03:11,574
Peterson so thank you

6121
04:03:16,458 --> 04:03:16,708
will there be questions

6122
04:03:21,124 --> 04:03:21,374
I don't have any questions

6123
04:03:24,658 --> 04:03:24,908
right now I know that I will

6124
04:03:25,258 --> 04:03:25,508
obviously looking through this

6125
04:03:26,891 --> 04:03:27,141
thank you for bringing this

6126
04:03:29,158 --> 04:03:29,408
Senator Peterson I think this is

6127
04:03:30,624 --> 04:03:30,874
a really important conversation

6128
04:03:31,391 --> 04:03:31,641
that we do need to have

6129
04:03:36,891 --> 04:03:37,141
so thank you if there's

6130
04:03:37,391 --> 04:03:37,641
anything else you can land the

6131
04:03:38,058 --> 04:03:38,308
plane or

6132
04:03:40,658 --> 04:03:40,908
offer closing comments. would

6133
04:03:41,258 --> 04:03:41,508
you mind turning your yep

6134
04:03:44,891 --> 04:03:45,141
perfect all right thank you the

6135
04:03:46,858 --> 04:03:47,108
two bills that were considered

6136
04:03:49,158 --> 04:03:49,408
was Senate Bill223 and and

6137
04:03:52,391 --> 04:03:52,641
senate bill 893 they were

6138
04:03:54,624 --> 04:03:54,874
enacted in at different times

6139
04:03:58,391 --> 04:03:58,641
and so the the last bill 893 was

6140
04:03:59,058 --> 04:03:59,308
the one that seemed like really

6141
04:04:00,924 --> 04:04:01,174
was pretty encompassing so this

6142
04:04:02,658 --> 04:04:02,908
brought some special attention

6143
04:04:04,391 --> 04:04:04,641
to to what we really need to do

6144
04:04:06,391 --> 04:04:06,641
here so with that being said

6145
04:04:08,391 --> 04:04:08,641
if there are no questions

6146
04:04:09,158 --> 04:04:09,408
that's the presentation that we

6147
04:04:09,824 --> 04:04:10,074
had planned for the day thank

6148
04:04:10,491 --> 04:04:10,741
you.

6149
04:04:14,891 --> 04:04:15,141
thank you everyone we have I

6150
04:04:16,391 --> 04:04:16,641
think another meeting here in a

6151
04:04:17,158 --> 04:04:17,408
couple of weeks we'll be getting

6152
04:04:20,891 --> 04:04:21,141
that agenda item out probably

6153
04:04:22,891 --> 04:04:23,141
this week or next week but

6154
04:04:24,891 --> 04:04:25,141
thank you for coming and you

6155
04:04:26,958 --> 04:04:27,208
have something else to again

6156
04:04:28,924 --> 04:04:29,174
thank you for the commerce team

6157
04:04:30,658 --> 04:04:30,908
for putting this all together

6158
04:04:32,458 --> 04:04:32,708
it's was

6159
04:04:32,708 --> 04:04:32,958
they can say

6160
04:04:34,491 --> 04:04:34,741
considered it pretty

6161
04:04:38,391 --> 04:04:38,641
in a in a small list here of ask

6162
04:04:40,391 --> 04:04:40,641
I think into one main ask and I

6163
04:04:42,391 --> 04:04:42,641
think it's pretty simple as so

6164
04:04:43,058 --> 04:04:43,308
anyway thank you for your work

6165
04:04:46,391 --> 04:04:46,641
yeah you guys did a great job of

6166
04:04:47,024 --> 04:04:47,274
course I always enjoy working

6167
04:04:48,391 --> 04:04:48,641
with you and seeing you also

6168
04:04:50,658 --> 04:04:50,908
with that we are adjourned

6169
04:04:51,224 --> 04:04:51,474
for today. thank you everybody