Inside the Housing Crisis: Why You Can’t Afford to Live Where You Work
Ken McElroy Podcast
[{'start': '0.080', 'end': '4.240', 'text': 'Why is the dream of affordable housing'}, {'start': '2.320', 'end': '6.240', 'text': 'slipping away for most Americans?'}, {'start': '4.240', 'end': '8.080', 'text': 'Building costs are up, land costs are'}, {'start': '6.240', 'end': '9.920', 'text': 'up, rent prices are going through the'}, {'start': '8.080', 'end': '12.400', 'text': 'roof, housing affordability is an'}, {'start': '9.920', 'end': '13.840', 'text': "all-time low. And in this video, we're"}, {'start': '12.400', 'end': '15.519', 'text': "going to break it down. So, let's first"}, {'start': '13.840', 'end': '17.359', 'text': 'define affordable housing, Brian,'}, {'start': '15.519', 'end': '18.960', 'text': "because it's a loose term and a lot of"}, {'start': '17.359', 'end': '21.279', 'text': 'people throw it around a lot, right? But'}, {'start': '18.960', 'end': '23.199', 'text': "it's a real issue because people are"}, {'start': '21.279', 'end': '25.600', 'text': 'having a tough time with their money'}, {'start': '23.199', 'end': '28.240', 'text': 'right now and wages are not growing like'}, {'start': '25.600', 'end': '29.920', 'text': 'inflation. So affordable housing, people'}, {'start': '28.240', 'end': '32.719', 'text': 'people tend to think of it sort of in'}, {'start': '29.920', 'end': '35.040', 'text': 'absolute terms, I think, in terms of u a'}, {'start': '32.719', 'end': '36.880', 'text': "a a housing product that's offered at a"}, {'start': '35.040', 'end': '38.559', 'text': 'lower rent or lower cost and that'}, {'start': '36.880', 'end': '40.480', 'text': "there's some threshold that makes it"}, {'start': '38.559', 'end': '42.079', 'text': "affordable. But it's actually a relative"}, {'start': '40.480', 'end': '44.480', 'text': "term, right? It's all relative to the"}, {'start': '42.079', 'end': '47.640', 'text': 'income that someone makes. And so by'}, {'start': '44.480', 'end': '49.840', 'text': 'government standards, it in order to be'}, {'start': '47.640', 'end': '52.239', 'text': "affordable that the rent that you're"}, {'start': '49.840', 'end': '54.079', 'text': 'paying and the utilities or the mortgage'}, {'start': '52.239', 'end': '56.800', 'text': "that you're paying can't exceed more"}, {'start': '54.079', 'end': '59.840', 'text': 'than 30% of your income. So obviously'}, {'start': '56.800', 'end': '62.320', 'text': 'for somebody making $60,000 a year, they'}, {'start': '59.840', 'end': '65.439', 'text': 'can afford on based on that math about'}, {'start': '62.320', 'end': '67.920', 'text': '$1,500 a month. Somebody making $100,000'}, {'start': '65.439', 'end': '70.640', 'text': "a year, what's affordable to them is"}, {'start': '67.920', 'end': '73.520', 'text': "$2,500 a month. So it's all relative to"}, {'start': '70.640', 'end': '74.799', 'text': 'to your income. Yeah, I think you know'}, {'start': '73.520', 'end': '77.439', 'text': 'when people are talking about'}, {'start': '74.799', 'end': '80.400', 'text': "affordability though I think it's really"}, {'start': '77.439', 'end': '82.640', 'text': 'kind of on the you know the the low'}, {'start': '80.400', 'end': '84.479', 'text': 'middle class right would you say'}, {'start': '82.640', 'end': '86.000', 'text': "generally because that's really where a"}, {'start': '84.479', 'end': '87.840', 'text': 'lot of government targets a lot of'}, {'start': '86.000', 'end': '90.240', 'text': 'programs I would I I I would say that'}, {'start': '87.840', 'end': '92.000', 'text': "that that is true I would say that it's"}, {'start': '90.240', 'end': '94.240', 'text': "it's an issue that's impacting more and"}, {'start': '92.000', 'end': '96.000', 'text': 'more of the middle class however I mean'}, {'start': '94.240', 'end': '98.400', 'text': 'if you look at some of the statistics'}, {'start': '96.000', 'end': '100.400', 'text': 'that are out there you know the the term'}, {'start': '98.400', 'end': '102.640', 'text': "that's used is cost burden so if you're"}, {'start': '100.400', 'end': '104.400', 'text': 'paying 30% % or less of your income,'}, {'start': '102.640', 'end': '105.920', 'text': "you're you're you're okay. If you're"}, {'start': '104.400', 'end': '108.000', 'text': "paying more than that, you're considered"}, {'start': '105.920', 'end': '110.079', 'text': 'costburdened. And the statistics are'}, {'start': '108.000', 'end': '113.200', 'text': 'kind of alarming, frankly. And in in in'}, {'start': '110.079', 'end': '115.920', 'text': 'greater Phoenix alone, um or in greater'}, {'start': '113.200', 'end': '119.119', 'text': 'Phoenix, 52% of renters are cost'}, {'start': '115.920', 'end': '120.960', 'text': 'burdened. So 52% of everybody renting is'}, {'start': '119.119', 'end': '122.640', 'text': 'paying more than what at least the'}, {'start': '120.960', 'end': '125.520', 'text': 'government feels, you know, is an'}, {'start': '122.640', 'end': '127.280', 'text': 'acceptable affordability. 25% of renters'}, {'start': '125.520', 'end': '129.599', 'text': "are severely costburden, meaning they're"}, {'start': '127.280', 'end': '132.000', 'text': 'spending more than 50% of their income.'}, {'start': '129.599', 'end': '133.200', 'text': 'And those figures hold pretty close uh'}, {'start': '132.000', 'end': '134.640', 'text': "whether you're looking at the state of"}, {'start': '133.200', 'end': '136.480', 'text': "Arizona or whe you're looking at the"}, {'start': '134.640', 'end': '138.959', 'text': "entire country. So it's a growing"}, {'start': '136.480', 'end': '141.599', 'text': 'problem. But a lot of the affordability'}, {'start': '138.959', 'end': '144.080', 'text': 'issue comes down to supply and demand.'}, {'start': '141.599', 'end': '148.080', 'text': "Correct. I mean rents go up when there's"}, {'start': '144.080', 'end': '150.800', 'text': 'no supply of housing in general. Uh no'}, {'start': '148.080', 'end': '153.920', 'text': 'doubt rents rents go up when when when'}, {'start': '150.800', 'end': '157.040', 'text': 'supply is is down. Rents also tend to go'}, {'start': '153.920', 'end': '158.480', 'text': 'up as it costs more to to to build.'}, {'start': '157.040', 'end': '160.400', 'text': "although you can't raise them any more"}, {'start': '158.480', 'end': '164.080', 'text': "than the market's going to support it."}, {'start': '160.400', 'end': '165.760', 'text': 'Um but uh uh but it absolutely is'}, {'start': '164.080', 'end': '168.160', 'text': "related to it's a supply and demand"}, {'start': '165.760', 'end': '170.879', 'text': 'issue. The supply side in terms of'}, {'start': '168.160', 'end': '173.040', 'text': "affordability is low. Um that's the"}, {'start': '170.879', 'end': '174.879', 'text': "bottom line. I know it's funny because"}, {'start': '173.040', 'end': '177.599', 'text': 'you you you and I have been doing this a'}, {'start': '174.879', 'end': '178.800', 'text': 'long time, right? I mean, you more'}, {'start': '177.599', 'end': '181.040', 'text': 'probably on the development and'}, {'start': '178.800', 'end': '183.599', 'text': 'construction side than than myself, but'}, {'start': '181.040', 'end': '187.760', 'text': 'I I I I we were just looking in downtown'}, {'start': '183.599', 'end': '191.200', 'text': 'Phoenix recently, and you can do a'}, {'start': '187.760', 'end': '192.800', 'text': '12-month lease if you rent at a building'}, {'start': '191.200', 'end': '194.159', 'text': 'down there. Actually, several buildings,'}, {'start': '192.800', 'end': '197.440', 'text': 'you can get four months off on a'}, {'start': '194.159', 'end': '199.200', 'text': "12-month lease. So, that's the opposite"}, {'start': '197.440', 'end': '201.519', 'text': "of, you know, that's that's a that's a"}, {'start': '199.200', 'end': '203.040', 'text': "spot where there's a lot of supply in an"}, {'start': '201.519', 'end': '206.800', 'text': 'area. And the only reason I bring that'}, {'start': '203.040', 'end': '209.360', 'text': "up is because if you're a renter, that's"}, {'start': '206.800', 'end': '211.360', 'text': "a heck of a good deal. And and that's"}, {'start': '209.360', 'end': '213.920', 'text': "not the way the market's supposed to."}, {'start': '211.360', 'end': '215.840', 'text': "No, no developer wants that. We wouldn't"}, {'start': '213.920', 'end': '218.799', 'text': "be in the business, right? But Neil's"}, {'start': '215.840', 'end': '220.799', 'text': "point, that's a supply issue. It is it"}, {'start': '218.799', 'end': '222.959', 'text': 'might be temporary, might be a little'}, {'start': '220.799', 'end': '225.599', 'text': 'bit longer than probably they want, but'}, {'start': '222.959', 'end': '228.080', 'text': 'it is a supply and it drives rents down.'}, {'start': '225.599', 'end': '230.640', 'text': 'It it it does drive rents down. Um and'}, {'start': '228.080', 'end': '233.599', 'text': 'and and obviously I mean as you know'}, {'start': '230.640', 'end': '236.560', 'text': 'multifamily is very geographically'}, {'start': '233.599', 'end': '237.760', 'text': "centric and or very it's very very"}, {'start': '236.560', 'end': '240.159', 'text': 'dependent upon where you are'}, {'start': '237.760', 'end': '242.400', 'text': 'geographically and in particular subm'}, {'start': '240.159', 'end': '244.400', 'text': 'markets. Um and the downtown Phoenix'}, {'start': '242.400', 'end': '247.360', 'text': 'subm market has had just a tremendous'}, {'start': '244.400', 'end': '250.080', 'text': 'amount of supply added to it and so'}, {'start': '247.360', 'end': '252.000', 'text': "there's unbelievable competition for the"}, {'start': '250.080', 'end': '254.560', 'text': 'renter there. And so you are seeing'}, {'start': '252.000', 'end': '256.320', 'text': 'significant concessions there that you'}, {'start': '254.560', 'end': '258.320', 'text': "don't see elsewhere. Now the west side"}, {'start': '256.320', 'end': '260.160', 'text': "obviously of the valley you're seeing um"}, {'start': '258.320', 'end': '263.040', 'text': 'a fair amount of that as well because of'}, {'start': '260.160', 'end': '265.199', 'text': "the supply issue there. So there's no"}, {'start': '263.040', 'end': '267.120', 'text': "doubt you're seeing and I think it is"}, {'start': '265.199', 'end': '269.360', 'text': 'temporary although it may be extended'}, {'start': '267.120', 'end': '272.320', 'text': 'for a few years while all the products'}, {'start': '269.360', 'end': '274.080', 'text': 'uh absorbed. Um you know in general'}, {'start': '272.320', 'end': '278.240', 'text': "right now there's a there's a there's a"}, {'start': '274.080', 'end': '281.280', 'text': 'short of of about 59,000 units in order'}, {'start': '278.240', 'end': '282.560', 'text': 'to uh you know to satisfy the need of'}, {'start': '281.280', 'end': '284.720', 'text': 'the renters who are currently'}, {'start': '282.560', 'end': '286.400', 'text': "costbururden. So it's it's significant."}, {'start': '284.720', 'end': '287.520', 'text': "So, let's ask the million-dollar"}, {'start': '286.400', 'end': '289.759', 'text': 'question, though, because like when I'}, {'start': '287.520', 'end': '291.840', 'text': 'read our YouTube comments or I talk to'}, {'start': '289.759', 'end': '294.240', 'text': 'people that are, you know, struggling'}, {'start': '291.840', 'end': '296.080', 'text': 'with rent, they always ask like, why'}, {'start': '294.240', 'end': '299.440', 'text': "isn't more affordable housing being"}, {'start': '296.080', 'end': '301.040', 'text': "built? And it's not quite that simple."}, {'start': '299.440', 'end': '303.280', 'text': "So, let's kind of break that down for"}, {'start': '301.040', 'end': '304.880', 'text': "our listeners. There there's a number of"}, {'start': '303.280', 'end': '307.440', 'text': "reasons. It's really hard to build"}, {'start': '304.880', 'end': '310.400', 'text': "housing that's affordable for um for for"}, {'start': '307.440', 'end': '313.440', 'text': 'folks. Um, you know, over time, uh,'}, {'start': '310.400', 'end': '315.360', 'text': 'cities, for instance, um, h have have'}, {'start': '313.440', 'end': '318.000', 'text': 'implemented design standards where they'}, {'start': '315.360', 'end': '319.759', 'text': 'want to see a lot of gingerbread on on'}, {'start': '318.000', 'end': '323.440', 'text': "the product that's built. They want to"}, {'start': '319.759', 'end': '325.919', 'text': 'see, um, in some cases more parking that'}, {'start': '323.440', 'end': '327.840', 'text': 'cost more to provide. Um and so the'}, {'start': '325.919', 'end': '329.600', 'text': 'requirements that cities are imposing on'}, {'start': '327.840', 'end': '331.280', 'text': "developers, whether it's landscaping,"}, {'start': '329.600', 'end': '334.320', 'text': "whether it's architectural features,"}, {'start': '331.280', 'end': '336.560', 'text': "whether it's parking, um or or fees that"}, {'start': '334.320', 'end': '339.840', 'text': "they're imposing, impact fees, permit"}, {'start': '336.560', 'end': '343.919', 'text': 'fees, land review fees, it all adds up,'}, {'start': '339.840', 'end': '346.000', 'text': 'right? And so um it it adds cost to to a'}, {'start': '343.919', 'end': '348.240', 'text': "project and you've got to charge rents"}, {'start': '346.000', 'end': '349.600', 'text': 'that are going to obviously um give you'}, {'start': '348.240', 'end': '352.160', 'text': "a return on the cost that you're"}, {'start': '349.600', 'end': '353.919', 'text': 'investing. So that makes it difficult'}, {'start': '352.160', 'end': '356.560', 'text': 'before you ever get to building things'}, {'start': '353.919', 'end': '358.560', 'text': 'like zoning. Um you know the traditional'}, {'start': '356.560', 'end': '362.520', 'text': 'zoning has really been an impediment to'}, {'start': '358.560', 'end': '365.680', 'text': 'building affordable housing. um zoning.'}, {'start': '362.520', 'end': '368.560', 'text': 'Uh cities tend to to like to zone a lot'}, {'start': '365.680', 'end': '370.639', 'text': 'of single family land and single family'}, {'start': '368.560', 'end': '372.560', 'text': 'is not really conducive to at least on'}, {'start': '370.639', 'end': '374.080', 'text': 'the on the rental side to providing'}, {'start': '372.560', 'end': '375.919', 'text': 'affordable housing because the more'}, {'start': '374.080', 'end': '378.880', 'text': 'density you can get the cheaper you can'}, {'start': '375.919', 'end': '381.520', 'text': 'build um you know a unit the and spread'}, {'start': '378.880', 'end': '384.400', 'text': 'it spread the cost over over more units.'}, {'start': '381.520', 'end': '386.720', 'text': 'Um and so when cities are pushing low'}, {'start': '384.400', 'end': '388.680', 'text': 'density and by the way neighborhoods who'}, {'start': '386.720', 'end': '391.199', 'text': 'you know the nimbies never not in my'}, {'start': '388.680', 'end': '393.840', 'text': "backyard they're pushing the city count"}, {'start': '391.199', 'end': '396.160', 'text': 'city councils to do that. Um you know'}, {'start': '393.840', 'end': '398.479', 'text': "you have it's very difficult to get"}, {'start': '396.160', 'end': '399.919', 'text': 'political support for affordable housing'}, {'start': '398.479', 'end': '402.240', 'text': 'difficult to get neighborhood support'}, {'start': '399.919', 'end': '404.800', 'text': 'for affordable housing. But I also want'}, {'start': '402.240', 'end': '408.080', 'text': "to say that there's a general perception"}, {'start': '404.800', 'end': '410.400', 'text': "that renters don't vote. Correct. This"}, {'start': '408.080', 'end': '413.759', 'text': "is a huge piece isn't talked about a"}, {'start': '410.400', 'end': '415.440', 'text': "lot. So because they're kind of nomadic,"}, {'start': '413.759', 'end': '417.840', 'text': "right? That's right. So there's that"}, {'start': '415.440', 'end': '420.880', 'text': 'issue, too. So, so when a politician is'}, {'start': '417.840', 'end': '422.800', 'text': 'looking at what do they do in an area,'}, {'start': '420.880', 'end': '425.840', 'text': "they're looking at, okay, I got the"}, {'start': '422.800', 'end': '428.800', 'text': 'single family home owner here that votes'}, {'start': '425.840', 'end': '430.960', 'text': "and is in my district and then you've"}, {'start': '428.800', 'end': '432.560', 'text': 'got this apartment is going to be in my'}, {'start': '430.960', 'end': '434.639', 'text': 'district for a long time, you know, and'}, {'start': '432.560', 'end': '436.240', 'text': "and they may or may not vote. So there's"}, {'start': '434.639', 'end': '437.440', 'text': 'that, too. So So explain that. So, do'}, {'start': '436.240', 'end': '439.199', 'text': 'you mean that the single family'}, {'start': '437.440', 'end': '441.440', 'text': 'homeowner would be pissed and then not'}, {'start': '439.199', 'end': '442.960', 'text': "vote for the politician? And then that's"}, {'start': '441.440', 'end': '444.960', 'text': 'exactly what it means that because'}, {'start': '442.960', 'end': '447.599', 'text': "they're like, why would that politician"}, {'start': '444.960', 'end': '449.680', 'text': 'allow a multifamily building in my'}, {'start': '447.599', 'end': '452.080', 'text': 'block? Conversely, what will the'}, {'start': '449.680', 'end': '453.919', 'text': 'multifamily resident do for me once'}, {'start': '452.080', 'end': '455.599', 'text': "they're there? Because the perception is"}, {'start': '453.919', 'end': '457.759', 'text': "they don't vote. They don't participate"}, {'start': '455.599', 'end': '459.840', 'text': "in their community. Um, and so they're"}, {'start': '457.759', 'end': '462.319', 'text': 'of little value to me. All they do is'}, {'start': '459.840', 'end': '464.160', 'text': 'bring me headaches because of'}, {'start': '462.319', 'end': '466.319', 'text': 'perception, of course, because of'}, {'start': '464.160', 'end': '468.960', 'text': 'traffic and crime. Yep. The neighbors'}, {'start': '466.319', 'end': '470.880', 'text': "being upset. So that's for that's for"}, {'start': '468.960', 'end': '473.280', 'text': 'multif family. I was going to say that'}, {'start': '470.880', 'end': '475.520', 'text': 'tape to affordable. Yeah. Right. Think'}, {'start': '473.280', 'end': '477.360', 'text': 'think about it like so this is a real'}, {'start': '475.520', 'end': '480.000', 'text': "issue that doesn't get talked about a a"}, {'start': '477.360', 'end': '482.240', 'text': 'lot. And so we will get to the the costs'}, {'start': '480.000', 'end': '485.280', 'text': "but the if you're a single family"}, {'start': '482.240', 'end': '487.680', 'text': "homeowner and you're thinking about the"}, {'start': '485.280', 'end': '489.840', 'text': "the neighborhood traffic, right? You're"}, {'start': '487.680', 'end': '492.240', 'text': "thinking about safety, you're thinking"}, {'start': '489.840', 'end': '493.440', 'text': "about the schools, you're thinking about"}, {'start': '492.240', 'end': '495.599', 'text': "all the things that you're thinking"}, {'start': '493.440', 'end': '496.440', 'text': 'about. you have a negative connotation'}, {'start': '495.599', 'end': '500.000', 'text': 'about'}, {'start': '496.440', 'end': '502.639', 'text': "apartments now. I don't we don't cuz we"}, {'start': '500.000', 'end': '504.800', 'text': 'are in the business, but that is what we'}, {'start': '502.639', 'end': '507.039', 'text': 'fight every time. And the politicians'}, {'start': '504.800', 'end': '510.639', 'text': "sitting there that were we're trying to"}, {'start': '507.039', 'end': '512.719', 'text': 'get an apartment community um approved'}, {'start': '510.639', 'end': '515.200', 'text': 'is actually considering all of those'}, {'start': '512.719', 'end': '516.880', 'text': 'things, too. And because the'}, {'start': '515.200', 'end': '518.399', 'text': 'neighborhoods of what happens at these'}, {'start': '516.880', 'end': '520.159', 'text': "hearings, and I've been to a number of"}, {'start': '518.399', 'end': '522.800', 'text': 'them, and I know you have, Brian,'}, {'start': '520.159', 'end': '524.640', 'text': "they'll have 50, 100 people show up at"}, {'start': '522.800', 'end': '527.760', 'text': "these things, right? Yeah. It's it's a"}, {'start': '524.640', 'end': '529.360', 'text': "it's a lot easier to uh to to get people"}, {'start': '527.760', 'end': '530.959', 'text': 'out for something they oppose than to'}, {'start': '529.360', 'end': '533.360', 'text': 'get people out for something. So, the'}, {'start': '530.959', 'end': '535.200', 'text': 'neighbors come out in droves. We do not'}, {'start': '533.360', 'end': '536.640', 'text': 'want this. We do not want this. And'}, {'start': '535.200', 'end': '538.320', 'text': "they're there yelling at the city"}, {'start': '536.640', 'end': '540.320', 'text': "council basically saying, don't allow"}, {'start': '538.320', 'end': '542.080', 'text': "it. So, so there's there's a resistance"}, {'start': '540.320', 'end': '544.320', 'text': 'there. before we get into cost because'}, {'start': '542.080', 'end': '546.640', 'text': "cost is important. We'll get there, but"}, {'start': '544.320', 'end': '549.920', 'text': 'you got to know that it has to be like'}, {'start': '546.640', 'end': '552.720', 'text': 'the right circumstance, right? Yeah, it'}, {'start': '549.920', 'end': '555.519', 'text': 'it does. Um, and like I said, you know,'}, {'start': '552.720', 'end': '557.519', 'text': "that the issues we're talking about have"}, {'start': '555.519', 'end': '560.320', 'text': 'been pervasive in and trying to build'}, {'start': '557.519', 'end': '562.880', 'text': 'multif market rate, class A multifamily'}, {'start': '560.320', 'end': '564.720', 'text': 'housing even for for decades, right? Um,'}, {'start': '562.880', 'end': '566.959', 'text': "I think it's changed a little bit and"}, {'start': '564.720', 'end': '569.519', 'text': 'but it it really again it depends on'}, {'start': '566.959', 'end': '571.040', 'text': 'where you are. um downtown Phoenix. Uh'}, {'start': '569.519', 'end': '573.040', 'text': "obviously you're not going to build a"}, {'start': '571.040', 'end': '575.200', 'text': 'single family house in downtown Phoenix.'}, {'start': '573.040', 'end': '576.959', 'text': 'Bringing residential downtown was a huge'}, {'start': '575.200', 'end': '578.640', 'text': "priority for the city. That's how they"}, {'start': '576.959', 'end': '581.040', 'text': 'ended up getting overbuilt because the'}, {'start': '578.640', 'end': '582.800', 'text': 'city provided incentives and so and and'}, {'start': '581.040', 'end': '585.120', 'text': 'and encourage all all of that'}, {'start': '582.800', 'end': '587.040', 'text': 'development to happen. Other areas in'}, {'start': '585.120', 'end': '589.200', 'text': 'the east valley and the suburban'}, {'start': '587.040', 'end': '591.680', 'text': 'locations totally different story. Yep.'}, {'start': '589.200', 'end': '593.519', 'text': "Uh where they're they have exactly the"}, {'start': '591.680', 'end': '595.600', 'text': "issues that that that you're you're"}, {'start': '593.519', 'end': '596.720', 'text': 'referring to. So yeah, it has to be'}, {'start': '595.600', 'end': '598.320', 'text': 'absolutely the right set of'}, {'start': '596.720', 'end': '602.160', 'text': "circumstance. And you'll find you'll"}, {'start': '598.320', 'end': '604.560', 'text': "even find in in in in a city uh you'll"}, {'start': '602.160', 'end': '606.000', 'text': "find a city staff that's educated on"}, {'start': '604.560', 'end': '607.760', 'text': 'multif family that understands the'}, {'start': '606.000', 'end': '610.160', 'text': "benefits of multif family that's looking"}, {'start': '607.760', 'end': '612.240', 'text': 'for the tax base that it can bring um'}, {'start': '610.160', 'end': '613.760', 'text': 'and and and the retail shoppers it can'}, {'start': '612.240', 'end': '615.920', 'text': "bring, etc. And so they'll come up with"}, {'start': '613.760', 'end': '618.320', 'text': 'with programs and be very supportive of'}, {'start': '615.920', 'end': '621.440', 'text': 'what of what a multif family developer'}, {'start': '618.320', 'end': '623.440', 'text': 'wants to do, but they better be in sync'}, {'start': '621.440', 'end': '625.200', 'text': 'with their city council because it it'}, {'start': '623.440', 'end': '626.640', 'text': 'can still go the other way if you have a'}, {'start': '625.200', 'end': '628.480', 'text': 'sport. And take a look at the property'}, {'start': '626.640', 'end': '631.519', 'text': "we're buying right now, the core as an"}, {'start': '628.480', 'end': '634.399', 'text': 'example or Alta or any of the others.'}, {'start': '631.519', 'end': '636.680', 'text': 'Look what they back up to, right? One on'}, {'start': '634.399', 'end': '639.600', 'text': "one side's a gas station, another side's"}, {'start': '636.680', 'end': '643.279', 'text': "Costco. Behind that's a Home Depot. It"}, {'start': '639.600', 'end': '644.720', 'text': 'fronts a major store uh major high major'}, {'start': '643.279', 'end': '646.959', 'text': 'road and then in front of that is going'}, {'start': '644.720', 'end': '651.040', 'text': 'to be a cigar store and a Tesla'}, {'start': '646.959', 'end': '652.959', 'text': 'dealership, right? Okay. So, so single'}, {'start': '651.040', 'end': '655.440', 'text': "family homeowners aren't going to fight"}, {'start': '652.959', 'end': '656.959', 'text': "that, right? And that that's kind of the"}, {'start': '655.440', 'end': '658.800', 'text': 'point, right? But you have to think with'}, {'start': '656.959', 'end': '660.800', 'text': 'that single family homeowner though, I'}, {'start': '658.800', 'end': '662.160', 'text': 'think that crime is a big, you know,'}, {'start': '660.800', 'end': '663.839', 'text': 'thing for them, especially when you'}, {'start': '662.160', 'end': '665.360', 'text': 'start throwing in the word affordable'}, {'start': '663.839', 'end': '666.959', 'text': 'because then they think that comes with'}, {'start': '665.360', 'end': '668.800', 'text': 'crime. They just whether it does or'}, {'start': '666.959', 'end': '670.720', 'text': "doesn't, that's just what people think."}, {'start': '668.800', 'end': '673.680', 'text': 'but also the value of their home, right?'}, {'start': '670.720', 'end': '676.480', 'text': 'Because any kind of multifamily next to'}, {'start': '673.680', 'end': '678.959', 'text': "a neighborhood, if there's issues, could"}, {'start': '676.480', 'end': '680.560', 'text': 'cause the home values to go down. It'}, {'start': '678.959', 'end': '682.399', 'text': 'could. I think the key is if there are'}, {'start': '680.560', 'end': '684.640', 'text': 'issues. And gener, you know, generally'}, {'start': '682.399', 'end': '686.399', 'text': "speaking, if if you've got a a"}, {'start': '684.640', 'end': '689.040', 'text': 'professionally developed, professionally'}, {'start': '686.399', 'end': '690.959', 'text': 'managed multifamily community, the'}, {'start': '689.040', 'end': '693.040', 'text': 'issues that people perceive are going to'}, {'start': '690.959', 'end': '695.040', 'text': "happen really don't happen. And the"}, {'start': '693.040', 'end': '698.800', 'text': 'statistics bear bear that out in terms'}, {'start': '695.040', 'end': '701.360', 'text': 'of you know crime the the uh number of'}, {'start': '698.800', 'end': '704.160', 'text': 'calls that police make on a per capita'}, {'start': '701.360', 'end': '706.399', 'text': 'basis. For instance, the traffic um that'}, {'start': '704.160', 'end': '708.240', 'text': 'comes out of apartment communities.'}, {'start': '706.399', 'end': '709.920', 'text': 'People well now people are even working'}, {'start': '708.240', 'end': '711.839', 'text': 'from home a lot, right? So they they'}, {'start': '709.920', 'end': '714.240', 'text': "don't even go in and out on a on a daily"}, {'start': '711.839', 'end': '716.720', 'text': 'basis necessarily. But but even even at'}, {'start': '714.240', 'end': '719.279', 'text': 'the preandemic levels at the height of'}, {'start': '716.720', 'end': '721.200', 'text': 'sort of traffic congestion, traffic came'}, {'start': '719.279', 'end': '722.880', 'text': "and went at different times. It's all"}, {'start': '721.200', 'end': '725.519', 'text': 'perception. It really is off percent.'}, {'start': '722.880', 'end': '727.440', 'text': "But I get that you're 100% right that"}, {'start': '725.519', 'end': '728.880', 'text': 'that the single family homeowner worries'}, {'start': '727.440', 'end': '730.240', 'text': 'about their property value and they have'}, {'start': '728.880', 'end': '733.120', 'text': 'a right to worry about their property'}, {'start': '730.240', 'end': '734.880', 'text': 'value. I get it. But this is this is'}, {'start': '733.120', 'end': '737.680', 'text': "that's why proper planning is so"}, {'start': '734.880', 'end': '739.600', 'text': 'important for a city to to you know do'}, {'start': '737.680', 'end': '742.079', 'text': 'you want to put multif family literally'}, {'start': '739.600', 'end': '744.800', 'text': 'next next door to to the single family'}, {'start': '742.079', 'end': '747.519', 'text': 'home. not ideal, but there are'}, {'start': '744.800', 'end': '749.839', 'text': 'definitely ways to create buffers around'}, {'start': '747.519', 'end': '751.680', 'text': 'it that might be commercial uses, might'}, {'start': '749.839', 'end': '753.040', 'text': 'be open space, might be a whole variety'}, {'start': '751.680', 'end': '754.639', 'text': "of different things. Well, it's funny"}, {'start': '753.040', 'end': '757.120', 'text': 'because, you know, Ken and I always talk'}, {'start': '754.639', 'end': '758.720', 'text': 'about, you know, you want home prices'}, {'start': '757.120', 'end': '760.320', 'text': 'like people want home prices to fall'}, {'start': '758.720', 'end': '762.800', 'text': 'till they buy a house, then they want'}, {'start': '760.320', 'end': '764.399', 'text': 'home prices to just go up and up and up.'}, {'start': '762.800', 'end': '766.720', 'text': "And it's kind of the same thing. you"}, {'start': '764.399', 'end': '769.839', 'text': 'know, people are probably all for, you'}, {'start': '766.720', 'end': '771.680', 'text': 'know, multifamily and more um units in'}, {'start': '769.839', 'end': '773.360', 'text': 'their area so that rents go down until'}, {'start': '771.680', 'end': '775.279', 'text': "they buy a house. Then they don't want"}, {'start': '773.360', 'end': '777.519', 'text': "that because they don't want"}, {'start': '775.279', 'end': '779.440', 'text': "availability, right? And so, so it's"}, {'start': '777.519', 'end': '781.279', 'text': 'just an interesting perspective of how'}, {'start': '779.440', 'end': '782.959', 'text': 'we are as people where we want that'}, {'start': '781.279', 'end': '785.839', 'text': "until we don't. That's right. and you"}, {'start': '782.959', 'end': '787.440', 'text': 'know trying to to fight off that nimi is'}, {'start': '785.839', 'end': '789.040', 'text': 'a big big part of all of it because'}, {'start': '787.440', 'end': '791.200', 'text': "that's a you know Ken and I are having"}, {'start': '789.040', 'end': '793.760', 'text': 'uh somebody who specializes in zoning on'}, {'start': '791.200', 'end': '795.920', 'text': 'later this month and a big part of the'}, {'start': '793.760', 'end': '797.600', 'text': "reason you can't change zoning is the"}, {'start': '795.920', 'end': '799.519', 'text': 'same reason you have a hard time getting'}, {'start': '797.600', 'end': '803.120', 'text': 'multif family approved. Yeah. And the'}, {'start': '799.519', 'end': '805.440', 'text': 'people that approve them are just voted'}, {'start': '803.120', 'end': '807.839', 'text': "and they're in these seats for a while"}, {'start': '805.440', 'end': '809.600', 'text': "and and they're part of the public and"}, {'start': '807.839', 'end': '812.000', 'text': "they're part of the neighborhoods and"}, {'start': '809.600', 'end': '814.880', 'text': "and they're sitting there going, you"}, {'start': '812.000', 'end': '817.200', 'text': 'know, I these people may or may not be'}, {'start': '814.880', 'end': '818.800', 'text': "renters. There's risks from their"}, {'start': '817.200', 'end': '821.680', 'text': 'standpoint. Often times they perceive'}, {'start': '818.800', 'end': '824.720', 'text': "the risks. It's easier just to say no,"}, {'start': '821.680', 'end': '827.360', 'text': 'appease the homeowner and and try to get'}, {'start': '824.720', 'end': '829.600', 'text': "the vote for Right. So, there's that"}, {'start': '827.360', 'end': '832.000', 'text': 'going on. Oh, go ahead. Well, I was'}, {'start': '829.600', 'end': '835.040', 'text': 'going to say I experienced NIMBI about a'}, {'start': '832.000', 'end': '837.600', 'text': 'month ago. Lou, how so? I put a full'}, {'start': '835.040', 'end': '839.279', 'text': 'price offer in on a house that was for'}, {'start': '837.600', 'end': '841.440', 'text': 'sale. It was a great deal. The house was'}, {'start': '839.279', 'end': '843.040', 'text': 'totally underpriced. Full price offer.'}, {'start': '841.440', 'end': '844.800', 'text': "And the realtor's not getting back to"}, {'start': '843.040', 'end': '847.279', 'text': 'me. Not getting back to me. Not getting'}, {'start': '844.800', 'end': '848.639', 'text': 'back to me. And finally, I\'m like, "Hey,'}, {'start': '847.279', 'end': '850.320', 'text': 'like, you know, my offer is going to'}, {'start': '848.639', 'end': '852.720', 'text': 'expire here in like 10 minutes. Like,'}, {'start': '850.320', 'end': '854.320', 'text': 'what\'s going on?" Uh, yeah. She took'}, {'start': '852.720', 'end': '856.560', 'text': "another offer. She didn't really want to"}, {'start': '854.320', 'end': '858.639', 'text': "rent to a someone that's going to make"}, {'start': '856.560', 'end': '861.600', 'text': 'it a rental. So, guess what that was?'}, {'start': '858.639', 'end': '864.959', 'text': 'That was the HOA, her being involved,'}, {'start': '861.600', 'end': '867.920', 'text': 'you know, pressuring her to not sell to'}, {'start': '864.959', 'end': '869.680', 'text': "a a point. No, they don't want Airbnbs."}, {'start': '867.920', 'end': '871.519', 'text': "They don't want rentals. They don't I"}, {'start': '869.680', 'end': '873.600', 'text': "mean, you know, it doesn't just sit in"}, {'start': '871.519', 'end': '875.279', 'text': 'our court here with the multifamily'}, {'start': '873.600', 'end': '878.120', 'text': "developments. No, that's right. That's"}, {'start': '875.279', 'end': '881.760', 'text': "right. It's everywhere. Yes. Um and"}, {'start': '878.120', 'end': '883.680', 'text': 'and I would say particularly on the on'}, {'start': '881.760', 'end': '885.680', 'text': "the single family side in today's world"}, {'start': '883.680', 'end': '887.279', 'text': "on the single family side when you've"}, {'start': '885.680', 'end': '888.720', 'text': 'got individual rentals scattered'}, {'start': '887.279', 'end': '890.800', 'text': 'throughout neighborhoods you can have'}, {'start': '888.720', 'end': '892.079', 'text': 'bad experiences is you you get the wrong'}, {'start': '890.800', 'end': '894.320', 'text': "tenants there who don't take care of the"}, {'start': '892.079', 'end': '896.800', 'text': "yard don't take care of the house etc."}, {'start': '894.320', 'end': '899.120', 'text': "And you know it's it's a it's a problem"}, {'start': '896.800', 'end': '902.320', 'text': 'for that partic that particular street.'}, {'start': '899.120', 'end': '905.199', 'text': 'I think the on the multif family side'}, {'start': '902.320', 'end': '906.880', 'text': 'the industry has advanced to to a real'}, {'start': '905.199', 'end': '911.000', 'text': 'level like I said of professionalism'}, {'start': '906.880', 'end': '914.880', 'text': 'that I think um the issues may have been'}, {'start': '911.000', 'end': '917.040', 'text': 'true decades ago when people built um'}, {'start': '914.880', 'end': '918.800', 'text': 'you know smalls size uh apartment'}, {'start': '917.040', 'end': '920.880', 'text': "complexes that didn't have professional"}, {'start': '918.800', 'end': '922.720', 'text': "management didn't have amenities. These"}, {'start': '920.880', 'end': '924.399', 'text': 'are these are huge institutional'}, {'start': '922.720', 'end': '926.240', 'text': 'investments, right, that that that'}, {'start': '924.399', 'end': '928.800', 'text': 'people are making and and institutions'}, {'start': '926.240', 'end': '930.720', 'text': "are making. Um, and they don't put them"}, {'start': '928.800', 'end': '932.480', 'text': 'up to see them get run down, to see them'}, {'start': '930.720', 'end': '935.680', 'text': 'have crime, to see them, you know, they'}, {'start': '932.480', 'end': '938.320', 'text': 'they put them up and uh and maintain the'}, {'start': '935.680', 'end': '939.920', 'text': 'quality so that they too can, you know,'}, {'start': '938.320', 'end': '941.680', 'text': 'get a return on their investment. Well,'}, {'start': '939.920', 'end': '943.600', 'text': 'let me throw it back to you because what'}, {'start': '941.680', 'end': '945.680', 'text': 'we initially started this conversation'}, {'start': '943.600', 'end': '948.639', 'text': 'is what is affordable housing, right?'}, {'start': '945.680', 'end': '950.480', 'text': 'So, what do the average person might'}, {'start': '948.639', 'end': '952.000', 'text': 'think affordable housing is? is they go'}, {'start': '950.480', 'end': '953.600', 'text': 'straight to section 8. Like affordable'}, {'start': '952.000', 'end': '954.759', 'text': 'housing is section 8, you know. So when'}, {'start': '953.600', 'end': '956.639', 'text': 'you say, "I\'m going to build an'}, {'start': '954.759', 'end': '958.079', 'text': 'affordable building in your'}, {'start': '956.639', 'end': '959.600', 'text': 'neighborhood," they think, "Oh my gosh,'}, {'start': '958.079', 'end': '961.279', 'text': 'this is going to be a section 8 building'}, {'start': '959.600', 'end': '963.199', 'text': 'right next to my neighborhood." And they'}, {'start': '961.279', 'end': '965.440', 'text': 'do associate that stuff with crime and'}, {'start': '963.199', 'end': '967.120', 'text': 'everything else. And so, you know,'}, {'start': '965.440', 'end': '969.120', 'text': "there's different levels of affordable"}, {'start': '967.120', 'end': '970.880', 'text': "housing. So, it's not just straight to"}, {'start': '969.120', 'end': '972.880', 'text': "section 8. There's different things that"}, {'start': '970.880', 'end': '975.040', 'text': "are affordable that are not that. That's"}, {'start': '972.880', 'end': '976.720', 'text': 'correct. Um and and and the and the'}, {'start': '975.040', 'end': '978.320', 'text': 'incent, you know, when the for the'}, {'start': '976.720', 'end': '979.839', 'text': 'government to get involved in affordable'}, {'start': '978.320', 'end': '981.480', 'text': 'housing, the incentives really vary'}, {'start': '979.839', 'end': '984.000', 'text': 'based on the on the level of'}, {'start': '981.480', 'end': '986.160', 'text': 'affordability. And what you might see'}, {'start': '984.000', 'end': '988.000', 'text': 'the the private sector trying to do on'}, {'start': '986.160', 'end': '989.680', 'text': 'their own is really more or less what'}, {'start': '988.000', 'end': '992.000', 'text': 'you would refer to as workforce housing'}, {'start': '989.680', 'end': '994.160', 'text': "or attainably priced housing where it's"}, {'start': '992.000', 'end': '996.000', 'text': 'not government incentivized or'}, {'start': '994.160', 'end': '998.399', 'text': "government subsidized. there's no income"}, {'start': '996.000', 'end': '1001.240', 'text': 'restrictions on it, but you try to build'}, {'start': '998.399', 'end': '1003.680', 'text': 'a product that is a a quality'}, {'start': '1001.240', 'end': '1005.519', 'text': 'product without perhaps all of the'}, {'start': '1003.680', 'end': '1008.079', 'text': 'gingerbread as I as I referred to'}, {'start': '1005.519', 'end': '1009.600', 'text': 'earlier. Um, still have amenities, but'}, {'start': '1008.079', 'end': '1012.320', 'text': 'you know, basic amenities, provide a'}, {'start': '1009.600', 'end': '1016.399', 'text': 'high quality lifestyle at the lowest'}, {'start': '1012.320', 'end': '1018.480', 'text': 'possible cost. Um and and and and and'}, {'start': '1016.399', 'end': '1020.320', 'text': 'you can offer those at prices that might'}, {'start': '1018.480', 'end': '1023.519', 'text': 'be, you know, affordable to people'}, {'start': '1020.320', 'end': '1026.720', 'text': 'between 80 and 120% of of area median'}, {'start': '1023.519', 'end': '1029.280', 'text': 'income that they call it. Um, as you go'}, {'start': '1026.720', 'end': '1031.280', 'text': "lower on the income scale, um, that's"}, {'start': '1029.280', 'end': '1033.039', 'text': 'where you start to see the the the'}, {'start': '1031.280', 'end': '1035.039', 'text': 'government get more involved with things'}, {'start': '1033.039', 'end': '1036.880', 'text': 'like section 8, with low-income housing'}, {'start': '1035.039', 'end': '1039.520', 'text': 'tax credits, with a whole variety of'}, {'start': '1036.880', 'end': '1041.520', 'text': 'different, um, funding sources that may'}, {'start': '1039.520', 'end': '1043.600', 'text': 'come from the federal government, may'}, {'start': '1041.520', 'end': '1044.799', 'text': 'come from housing authorities. And'}, {'start': '1043.600', 'end': '1048.000', 'text': "that's where you're going to start to"}, {'start': '1044.799', 'end': '1050.400', 'text': 'see more and more restrictions on the'}, {'start': '1048.000', 'end': '1052.400', 'text': 'the level of affordability that needs to'}, {'start': '1050.400', 'end': '1055.280', 'text': 'be maintained, how long that'}, {'start': '1052.400', 'end': '1057.360', 'text': 'affordability needs to be maintained. Um'}, {'start': '1055.280', 'end': '1058.799', 'text': "and and and that's where that's where I"}, {'start': '1057.360', 'end': '1061.520', 'text': 'think you really start to get the'}, {'start': '1058.799', 'end': '1063.120', 'text': 'worries from uh from the nimbies, if you'}, {'start': '1061.520', 'end': '1064.799', 'text': 'will, and the neighborhoods. Now, even'}, {'start': '1063.120', 'end': '1066.400', 'text': "workforce housing, you you'll get you'll"}, {'start': '1064.799', 'end': '1068.799', 'text': "get push back. It's still multif family"}, {'start': '1066.400', 'end': '1070.400', 'text': "and and it and it's it's uh you get the"}, {'start': '1068.799', 'end': '1072.000', 'text': "push back, but that's where you really"}, {'start': '1070.400', 'end': '1074.080', 'text': 'start. And let me give you another spin'}, {'start': '1072.000', 'end': '1075.240', 'text': 'on this because I saw this specifically'}, {'start': '1074.080', 'end': '1077.520', 'text': 'in San'}, {'start': '1075.240', 'end': '1079.440', 'text': "Francisco. You know, let's just pick on"}, {'start': '1077.520', 'end': '1081.280', 'text': 'San Francisco or Paradise Valley or'}, {'start': '1079.440', 'end': '1083.679', 'text': 'downtown Seattle or Scottsdale. It'}, {'start': '1081.280', 'end': '1086.240', 'text': "doesn't really matter. those places"}, {'start': '1083.679', 'end': '1090.240', 'text': "generally don't want apartments, I would"}, {'start': '1086.240', 'end': '1092.720', 'text': 'say. And so what happens is um you know'}, {'start': '1090.240', 'end': '1096.799', 'text': "if if in Scottsdale, let's just say"}, {'start': '1092.720', 'end': '1099.679', 'text': "let's say a a teacher works at a high"}, {'start': '1096.799', 'end': '1102.559', 'text': 'school there, just a public high school,'}, {'start': '1099.679', 'end': '1104.320', 'text': 'they more than likely cannot live in'}, {'start': '1102.559', 'end': '1106.480', 'text': 'Scottsdale.'}, {'start': '1104.320', 'end': '1108.799', 'text': 'Same thing with the fire department,'}, {'start': '1106.480', 'end': '1110.320', 'text': 'same thing with the law enforcement.'}, {'start': '1108.799', 'end': '1113.280', 'text': 'Same thing with, you know, go on and on'}, {'start': '1110.320', 'end': '1116.080', 'text': 'and on. So, so what happens is the'}, {'start': '1113.280', 'end': '1117.760', 'text': 'people who are keeping these properties'}, {'start': '1116.080', 'end': '1120.880', 'text': 'out'}, {'start': '1117.760', 'end': '1124.880', 'text': "um don't realize that the response rate"}, {'start': '1120.880', 'end': '1127.039', 'text': 'could be 15 20 minutes for an ambulance'}, {'start': '1124.880', 'end': '1128.799', 'text': 'potentially, right? You know, and I'}, {'start': '1127.039', 'end': '1132.320', 'text': "there are studies and I know you've seen"}, {'start': '1128.799', 'end': '1134.000', 'text': "these and it's actually it's actually a"}, {'start': '1132.320', 'end': '1137.600', 'text': 'problem. Like if you live in a really'}, {'start': '1134.000', 'end': '1141.120', 'text': 'expensive area and your response rate'}, {'start': '1137.600', 'end': '1143.760', 'text': 'is, you know, 6 7 8 10 minutes longer,'}, {'start': '1141.120', 'end': '1146.400', 'text': "that's a problem. Y potentially. And so,"}, {'start': '1143.760', 'end': '1147.679', 'text': "so you've got other things going on like"}, {'start': '1146.400', 'end': '1150.240', 'text': 'if you want to be a teacher in the'}, {'start': '1147.679', 'end': '1153.200', 'text': "Scottsdale district, let's say, you"}, {'start': '1150.240', 'end': '1154.720', 'text': "know, um, and you're single, you're"}, {'start': '1153.200', 'end': '1156.559', 'text': 'probably not going to own a home there.'}, {'start': '1154.720', 'end': '1158.400', 'text': "Correct. And you probably can't afford"}, {'start': '1156.559', 'end': '1160.640', 'text': 'an apartment there. Oh, yeah. For sure.'}, {'start': '1158.400', 'end': '1163.840', 'text': 'Right. Right. So, so these things have'}, {'start': '1160.640', 'end': '1165.120', 'text': 'other issues attached to them and and I'}, {'start': '1163.840', 'end': '1167.360', 'text': "think that's an important thing to"}, {'start': '1165.120', 'end': '1169.679', 'text': "understand. So, so we're constantly"}, {'start': '1167.360', 'end': '1171.760', 'text': "fighting that. That's what we're trying"}, {'start': '1169.679', 'end': '1173.360', 'text': 'to deliver. Well, it is because, you'}, {'start': '1171.760', 'end': '1175.200', 'text': "know, if you have a teacher and she's"}, {'start': '1173.360', 'end': '1176.880', 'text': 'offered a job in a more affordable'}, {'start': '1175.200', 'end': '1178.400', 'text': 'district or a more expensive district'}, {'start': '1176.880', 'end': '1180.720', 'text': 'and her commute is going to be'}, {'start': '1178.400', 'end': '1182.799', 'text': "significantly shorter, then she's going"}, {'start': '1180.720', 'end': '1184.559', 'text': 'to definitely consider working at the'}, {'start': '1182.799', 'end': '1186.960', 'text': 'places closer, even if the other place'}, {'start': '1184.559', 'end': '1188.880', 'text': "is nicer. Yeah. Just because now she's"}, {'start': '1186.960', 'end': '1190.559', 'text': 'got to drive. You got to calculate gas,'}, {'start': '1188.880', 'end': '1192.400', 'text': 'you got your time, all the things,'}, {'start': '1190.559', 'end': '1195.360', 'text': "right? That's true. And I think that's"}, {'start': '1192.400', 'end': '1198.000', 'text': 'another layer that you know. So, so what'}, {'start': '1195.360', 'end': '1201.280', 'text': 'happens is the affordability is a'}, {'start': '1198.000', 'end': '1204.080', 'text': 'problem. Yes. If a developer could'}, {'start': '1201.280', 'end': '1206.880', 'text': 'build, they will, right? Right. I mean,'}, {'start': '1204.080', 'end': '1208.480', 'text': 'we have the money. Y, we need the land.'}, {'start': '1206.880', 'end': '1210.400', 'text': 'We can put a deal together. If the'}, {'start': '1208.480', 'end': '1212.799', 'text': "numbers pencil, we'll do it. The problem"}, {'start': '1210.400', 'end': '1214.799', 'text': "is is that it's it's expensive. Now, now"}, {'start': '1212.799', 'end': '1216.400', 'text': 'we can kind of go on to the economics of'}, {'start': '1214.799', 'end': '1218.160', 'text': "it, you know. So, so you've got all"}, {'start': '1216.400', 'end': '1220.799', 'text': "those restrictions. The people don't"}, {'start': '1218.160', 'end': '1223.520', 'text': 'want it. The usually the city councils'}, {'start': '1220.799', 'end': '1225.760', 'text': "don't want it. Um um you know, and"}, {'start': '1223.520', 'end': '1227.600', 'text': "there's all this complexity. And then"}, {'start': '1225.760', 'end': '1230.400', 'text': 'all of a sudden, if we do find a piece'}, {'start': '1227.600', 'end': '1234.000', 'text': "of land like let's say in Scottsdale,"}, {'start': '1230.400', 'end': '1237.320', 'text': 'one acre is a million bucks, right? Mhm.'}, {'start': '1234.000', 'end': '1240.320', 'text': "And and in T or let's say Mesa, it's"}, {'start': '1237.320', 'end': '1242.880', 'text': "200,000, right? That's a big difference,"}, {'start': '1240.320', 'end': '1245.440', 'text': 'you know, all said. So all that all that'}, {'start': '1242.880', 'end': '1247.039', 'text': "extra cost um and we haven't even gotten"}, {'start': '1245.440', 'end': '1249.120', 'text': 'into construction or impact fees or'}, {'start': '1247.039', 'end': '1251.440', 'text': 'anything that all layers into what we'}, {'start': '1249.120', 'end': '1254.240', 'text': 'have to charge for rent and so all of'}, {'start': '1251.440', 'end': '1257.120', 'text': 'that complexity makes or breaks a deal.'}, {'start': '1254.240', 'end': '1259.679', 'text': "And unfortunately today there's almost"}, {'start': '1257.120', 'end': '1261.360', 'text': 'no choice other than to build class A.'}, {'start': '1259.679', 'end': '1263.360', 'text': "Right. Right. And that's where the"}, {'start': '1261.360', 'end': '1265.200', 'text': "that's where the supply demand imbalance"}, {'start': '1263.360', 'end': '1266.880', 'text': "is right now is that there's tre, you"}, {'start': '1265.200', 'end': '1268.720', 'text': 'know, tremendous amount of class A'}, {'start': '1266.880', 'end': '1271.120', 'text': "product that's been delivered. And there"}, {'start': '1268.720', 'end': '1273.280', 'text': 'may be temporary concessions on it in in'}, {'start': '1271.120', 'end': '1275.159', 'text': 'places that have gotten overbuilt. Um,'}, {'start': '1273.280', 'end': '1277.520', 'text': 'but but'}, {'start': '1275.159', 'end': '1281.200', 'text': 'long-term attainably or affordably'}, {'start': '1277.520', 'end': '1283.360', 'text': 'priced housing is in short supply. Um,'}, {'start': '1281.200', 'end': '1285.200', 'text': 'and in particular in the areas where it'}, {'start': '1283.360', 'end': '1286.960', 'text': 'could it could do them do the most good.'}, {'start': '1285.200', 'end': '1288.960', 'text': 'So So if if you were in the single'}, {'start': '1286.960', 'end': '1291.280', 'text': 'family market, the only thing we can'}, {'start': '1288.960', 'end': '1292.720', 'text': 'build is custom Well, that but that is'}, {'start': '1291.280', 'end': '1294.080', 'text': "happening. I mean, you know, you don't"}, {'start': '1292.720', 'end': '1295.600', 'text': 'build starter homes anymore. People'}, {'start': '1294.080', 'end': '1297.760', 'text': "don't build starter home neighborhoods"}, {'start': '1295.600', 'end': '1300.080', 'text': 'anymore. So, Right. For the same reason,'}, {'start': '1297.760', 'end': '1302.880', 'text': 'right? Right. And so one of the things'}, {'start': '1300.080', 'end': '1306.480', 'text': 'that um you know Brian mentioned earlier'}, {'start': '1302.880', 'end': '1308.880', 'text': 'is if we can get relaxed zoning, if we'}, {'start': '1306.480', 'end': '1310.799', 'text': 'can get concessions from the cities, if'}, {'start': '1308.880', 'end': '1314.320', 'text': 'we can get'}, {'start': '1310.799', 'end': '1316.720', 'text': 'streamline permitting the the the time'}, {'start': '1314.320', 'end': '1318.880', 'text': 'frames are are reduced, if the if the'}, {'start': '1316.720', 'end': '1320.880', 'text': 'entitlements processes like you said'}, {'start': '1318.880', 'end': '1324.000', 'text': 'zoning, so the entitlement processes'}, {'start': '1320.880', 'end': '1325.840', 'text': 'were were shortened. Um and and some'}, {'start': '1324.000', 'end': '1329.200', 'text': 'some cities are doing that and you know'}, {'start': '1325.840', 'end': '1332.080', 'text': 'some cities have recognized the need to'}, {'start': '1329.200', 'end': '1334.000', 'text': 'have uh this product in in the mix of'}, {'start': '1332.080', 'end': '1335.760', 'text': 'housing choices that are available. Um'}, {'start': '1334.000', 'end': '1337.679', 'text': "and frankly and and a lot it's an"}, {'start': '1335.760', 'end': '1338.880', 'text': 'economic issue frankly if cities really'}, {'start': '1337.679', 'end': '1340.720', 'text': 'stopped and thought think about it'}, {'start': '1338.880', 'end': '1342.320', 'text': "because you're you're you just mentioned"}, {'start': '1340.720', 'end': '1345.840', 'text': 'teachers, firefighters, police, right?'}, {'start': '1342.320', 'end': '1350.320', 'text': 'Um um labor force, right? You got you'}, {'start': '1345.840', 'end': '1353.039', 'text': 'need a a a a mix of of of of household'}, {'start': '1350.320', 'end': '1355.120', 'text': 'incomes to provide labor to your'}, {'start': '1353.039', 'end': '1357.760', 'text': 'employers. And if and but why do you'}, {'start': '1355.120', 'end': '1360.000', 'text': "want those renters? That's accurate. I"}, {'start': '1357.760', 'end': '1362.720', 'text': "know. I know. That's nimi right there."}, {'start': '1360.000', 'end': '1364.720', 'text': "Like it is. You're 100% right. And"}, {'start': '1362.720', 'end': '1366.799', 'text': "that's part of it. You know, the the"}, {'start': '1364.720', 'end': '1368.799', 'text': 'neighborhoods beat it. They they fight'}, {'start': '1366.799', 'end': '1372.159', 'text': 'against it. They support the city'}, {'start': '1368.799', 'end': '1374.559', 'text': 'council um supports it. And oh, you'}, {'start': '1372.159', 'end': '1376.799', 'text': 'know, our battles to get affordable'}, {'start': '1374.559', 'end': '1378.799', 'text': "housing, um, you know, they're"}, {'start': '1376.799', 'end': '1380.720', 'text': 'legendary, right? Like, how many of'}, {'start': '1378.799', 'end': '1384.159', 'text': "these things you I've been in so many of"}, {'start': '1380.720', 'end': '1387.360', 'text': 'these Oh, rooms. Yes. Yes. Where they'}, {'start': '1384.159', 'end': '1389.679', 'text': "don't want it. So, so, okay. So, here's"}, {'start': '1387.360', 'end': '1391.520', 'text': "what everyone's thinking now is who"}, {'start': '1389.679', 'end': '1393.520', 'text': "cares about you developers? Why doesn't"}, {'start': '1391.520', 'end': '1395.039', 'text': 'the government just build it? Because'}, {'start': '1393.520', 'end': '1397.840', 'text': "that's you hear that all the time. I see"}, {'start': '1395.039', 'end': '1400.240', 'text': 'that all the time on our YouTube. Um, so'}, {'start': '1397.840', 'end': '1401.679', 'text': 'government is very involved. Um'}, {'start': '1400.240', 'end': '1405.440', 'text': "government doesn't have unlimited"}, {'start': '1401.679', 'end': '1407.840', 'text': 'resources. Um and and so you know e even'}, {'start': '1405.440', 'end': '1410.159', 'text': 'if government was a hund all levels of'}, {'start': '1407.840', 'end': '1412.480', 'text': 'government if they were 100% aligned on'}, {'start': '1410.159', 'end': '1415.039', 'text': 'the need for affordable housing the'}, {'start': '1412.480', 'end': '1416.880', 'text': 'resources are limited. And so you you do'}, {'start': '1415.039', 'end': '1419.360', 'text': 'have the government uh you know'}, {'start': '1416.880', 'end': '1421.360', 'text': 'providing uh everything from low-income'}, {'start': '1419.360', 'end': '1423.679', 'text': 'housing tax credits to issuing tax'}, {'start': '1421.360', 'end': '1426.400', 'text': 'exempt bonds to section aid assistance'}, {'start': '1423.679', 'end': '1428.799', 'text': "where they're subsidizing you know uh"}, {'start': '1426.400', 'end': '1431.200', 'text': 'rents that are exceed the 30 30% of'}, {'start': '1428.799', 'end': '1433.039', 'text': "income. Uh you've got community"}, {'start': '1431.200', 'end': '1434.880', 'text': "development block grants. There's a"}, {'start': '1433.039', 'end': '1438.159', 'text': 'whole variety of things. Property tax'}, {'start': '1434.880', 'end': '1441.600', 'text': 'abatements. All of that can be done. Um'}, {'start': '1438.159', 'end': '1443.840', 'text': 'but it also makes these projects'}, {'start': '1441.600', 'end': '1445.520', 'text': 'extremely complicated. So, one, the li'}, {'start': '1443.840', 'end': '1447.919', 'text': "the resources are limited. You can't do"}, {'start': '1445.520', 'end': '1451.120', 'text': 'it for everybody everywhere like a mass'}, {'start': '1447.919', 'end': '1454.799', 'text': "scale housing. You just can't. Um but"}, {'start': '1451.120', 'end': '1457.279', 'text': 'but two, all of those things make those'}, {'start': '1454.799', 'end': '1459.520', 'text': 'projects very very complicated, right?'}, {'start': '1457.279', 'end': '1462.159', 'text': 'So, so even if you can get government'}, {'start': '1459.520', 'end': '1464.559', 'text': 'assistance to to finance an affordable'}, {'start': '1462.159', 'end': '1467.440', 'text': "housing project, it's not likely to"}, {'start': '1464.559', 'end': '1469.200', 'text': 'finance 100% of what you need. So, USU'}, {'start': '1467.440', 'end': '1471.679', 'text': 'low-income housing tax credits depending'}, {'start': '1469.200', 'end': '1474.480', 'text': "upon which program the that that you're"}, {'start': '1471.679', 'end': '1477.200', 'text': "you're utilizing the the 4% of the 9%"}, {'start': '1474.480', 'end': '1478.880', 'text': "tax credits. Um, it it it'll it'll"}, {'start': '1477.200', 'end': '1481.039', 'text': 'provide you can sell those tax credits'}, {'start': '1478.880', 'end': '1483.520', 'text': "to equity investors and it'll provide"}, {'start': '1481.039', 'end': '1485.120', 'text': 'anywhere between say 30 and 70% of the'}, {'start': '1483.520', 'end': '1487.039', 'text': 'equity you need. Well, you still got to'}, {'start': '1485.120', 'end': '1490.400', 'text': 'go raise the other right now. You got'}, {'start': '1487.039', 'end': '1492.320', 'text': 'multiple levels of of uh of investors in'}, {'start': '1490.400', 'end': '1494.480', 'text': 'there. You probably have multiple'}, {'start': '1492.320', 'end': '1498.159', 'text': 'lenders involved. You got the government'}, {'start': '1494.480', 'end': '1501.039', 'text': 'involved. So the time, the complication,'}, {'start': '1498.159', 'end': '1503.919', 'text': 'the legal expenses, etc. to get that'}, {'start': '1501.039', 'end': '1506.640', 'text': "done, it's difficult on a mass scale."}, {'start': '1503.919', 'end': '1508.400', 'text': 'But in Chicago, they do have government'}, {'start': '1506.640', 'end': '1511.120', 'text': 'housing, right? Where the government did'}, {'start': '1508.400', 'end': '1513.039', 'text': "build not good stuff. Exactly. It's not"}, {'start': '1511.120', 'end': '1514.799', 'text': 'good. But but you know, but they did do'}, {'start': '1513.039', 'end': '1516.080', 'text': "it. Well, they and they've done it in,"}, {'start': '1514.799', 'end': '1517.840', 'text': "you know, most big cities and they've"}, {'start': '1516.080', 'end': '1519.600', 'text': 'done it here and some cities did it'}, {'start': '1517.840', 'end': '1521.120', 'text': 'better than than others. And some of it'}, {'start': '1519.600', 'end': '1522.480', 'text': 'still exists. you know, the public'}, {'start': '1521.120', 'end': '1524.159', 'text': 'housing and of course when you think of'}, {'start': '1522.480', 'end': '1526.320', 'text': 'Chicago and you think of New York and'}, {'start': '1524.159', 'end': '1528.480', 'text': 'you think of the big high-rise tenement'}, {'start': '1526.320', 'end': '1529.919', 'text': 'type situations that would was not a'}, {'start': '1528.480', 'end': '1532.159', 'text': 'good quality of life for the people'}, {'start': '1529.919', 'end': '1533.760', 'text': 'there. It, you know, it was there were'}, {'start': '1532.159', 'end': '1535.679', 'text': 'no amenities. There was there was no'}, {'start': '1533.760', 'end': '1537.120', 'text': 'anything. And it did kind of foster it'}, {'start': '1535.679', 'end': '1539.039', 'text': "didn't give people a sense of hope,"}, {'start': '1537.120', 'end': '1540.880', 'text': 'right? And that does kind of foster a'}, {'start': '1539.039', 'end': '1542.799', 'text': 'tendency toward more crime and that type'}, {'start': '1540.880', 'end': '1544.559', 'text': 'of a thing. Um, there were maintenance'}, {'start': '1542.799', 'end': '1546.000', 'text': 'issues, you know, there were aesthetic'}, {'start': '1544.559', 'end': '1548.000', 'text': 'issues. They were built like, you know,'}, {'start': '1546.000', 'end': '1551.200', 'text': 'prisons essentially in a lot of ways.'}, {'start': '1548.000', 'end': '1553.559', 'text': 'And so they were not re they provided a'}, {'start': '1551.200', 'end': '1555.360', 'text': 'place for people to sleep in an'}, {'start': '1553.559', 'end': '1556.720', 'text': 'affordable with a roof, you know,'}, {'start': '1555.360', 'end': '1559.760', 'text': 'affordable way with a roof over their'}, {'start': '1556.720', 'end': '1563.360', 'text': 'head, but that was about it. Um and and'}, {'start': '1559.760', 'end': '1565.200', 'text': 'so um and especially in dense cities'}, {'start': '1563.360', 'end': '1566.240', 'text': "like that where that's what they did is"}, {'start': '1565.200', 'end': '1568.159', 'text': 'they built the you know the huge'}, {'start': '1566.240', 'end': '1571.200', 'text': 'highrises like that. Now in Phoenix for'}, {'start': '1568.159', 'end': '1572.720', 'text': 'instance, they built very large swats of'}, {'start': '1571.200', 'end': '1574.159', 'text': 'land because land was available. land'}, {'start': '1572.720', 'end': '1576.400', 'text': 'was relatively cheap at the time and'}, {'start': '1574.159', 'end': '1577.840', 'text': 'they build lower density things and um'}, {'start': '1576.400', 'end': '1581.520', 'text': 'and some of that still exists and some'}, {'start': '1577.840', 'end': '1583.120', 'text': "of it's okay but that is not the model"}, {'start': '1581.520', 'end': '1585.120', 'text': "going forward. It really isn't. That's"}, {'start': '1583.120', 'end': '1587.919', 'text': 'the old model. The model now is to try'}, {'start': '1585.120', 'end': '1589.840', 'text': 'to to to use government resources to'}, {'start': '1587.919', 'end': '1591.679', 'text': 'leverage private investment and do it in'}, {'start': '1589.840', 'end': '1593.520', 'text': "a partnership. And that's really where"}, {'start': '1591.679', 'end': '1595.360', 'text': "it's headed. Can you imagine if your"}, {'start': '1593.520', 'end': '1597.440', 'text': 'management office was basically the post'}, {'start': '1595.360', 'end': '1599.520', 'text': 'office when you needed something, right?'}, {'start': '1597.440', 'end': '1602.240', 'text': "Yeah. Well, yeah. you know, it's"}, {'start': '1599.520', 'end': '1605.840', 'text': 'building something is a is a service.'}, {'start': '1602.240', 'end': '1607.600', 'text': "It's it's uh it's temporary, right? And"}, {'start': '1605.840', 'end': '1609.440', 'text': 'you do need help to be able to go in and'}, {'start': '1607.600', 'end': '1611.440', 'text': "out of it, but it'd be like uh you know,"}, {'start': '1609.440', 'end': '1613.200', 'text': "why doesn't the government involved in"}, {'start': '1611.440', 'end': '1614.159', 'text': "medical? Why why aren't they doctors?"}, {'start': '1613.200', 'end': '1615.679', 'text': "Why, you know, why aren't they"}, {'start': '1614.159', 'end': '1616.960', 'text': 'developers? Well, some people say they'}, {'start': '1615.679', 'end': '1618.799', 'text': 'should be, right? They should hire'}, {'start': '1616.960', 'end': '1620.880', 'text': 'doctors and have those services, but the'}, {'start': '1618.799', 'end': '1623.600', 'text': "government can't do everything. And"}, {'start': '1620.880', 'end': '1625.200', 'text': "having a multifamily building, there's a"}, {'start': '1623.600', 'end': '1626.640', 'text': "lot that goes into that, right? There's"}, {'start': '1625.200', 'end': '1628.240', 'text': 'a lot of maintenance issues, a lot of'}, {'start': '1626.640', 'end': '1630.480', 'text': "property management issues, there's a"}, {'start': '1628.240', 'end': '1632.159', 'text': "lot of non-payment issues, there's, you"}, {'start': '1630.480', 'end': '1634.799', 'text': 'know, well, you take you take the profit'}, {'start': '1632.159', 'end': '1636.320', 'text': 'motive out of it and uh that causes a'}, {'start': '1634.799', 'end': '1637.919', 'text': "lot of issues as well. That's, you know,"}, {'start': '1636.320', 'end': '1639.799', 'text': "that's what happened in public housing,"}, {'start': '1637.919', 'end': '1643.279', 'text': 'right? I tell you what, if if you Google'}, {'start': '1639.799', 'end': '1645.120', 'text': 'like Los Angeles affordable housing and'}, {'start': '1643.279', 'end': '1648.000', 'text': "you know, all the stuff that they've"}, {'start': '1645.120', 'end': '1650.400', 'text': "tried to do there, you'll see that um"}, {'start': '1648.000', 'end': '1653.200', 'text': 'specifically in Los Angeles, I think'}, {'start': '1650.400', 'end': '1656.720', 'text': 'they were spending $200 or $300,000 more'}, {'start': '1653.200', 'end': '1658.799', 'text': 'per unit in kickbacks and fees and all'}, {'start': '1656.720', 'end': '1660.480', 'text': "this other stuff, right? I mean, it's"}, {'start': '1658.799', 'end': '1662.240', 'text': 'all over the news, right? Yeah. All you'}, {'start': '1660.480', 'end': '1664.480', 'text': 'got to do is look. And so every time the'}, {'start': '1662.240', 'end': '1666.640', 'text': "government's got involved, at least that"}, {'start': '1664.480', 'end': '1668.080', 'text': "I've seen, it's been a bit of a cluster"}, {'start': '1666.640', 'end': '1669.919', 'text': "because they're actually not in the"}, {'start': '1668.080', 'end': '1671.679', 'text': 'business. But, uh, Brian said something'}, {'start': '1669.919', 'end': '1673.600', 'text': 'interesting that I never really thought'}, {'start': '1671.679', 'end': '1675.200', 'text': "about, but now I'm thinking about it."}, {'start': '1673.600', 'end': '1677.279', 'text': 'You know, everyone thinks that private'}, {'start': '1675.200', 'end': '1679.360', 'text': "development is bad because it's profit"}, {'start': '1677.279', 'end': '1681.039', 'text': 'motivated, right? So, everyone thinks'}, {'start': '1679.360', 'end': '1682.399', 'text': 'government housing would be great'}, {'start': '1681.039', 'end': '1684.080', 'text': 'because it would not be profit'}, {'start': '1682.399', 'end': '1686.320', 'text': 'motivated, right? But kind of explain'}, {'start': '1684.080', 'end': '1687.919', 'text': 'why that could be a problem. Well, it'}, {'start': '1686.320', 'end': '1690.720', 'text': 'goes back to what I said earlier today.'}, {'start': '1687.919', 'end': '1693.039', 'text': "today's the multif family industry today"}, {'start': '1690.720', 'end': '1695.360', 'text': "I is is it's a big business right and"}, {'start': '1693.039', 'end': '1698.399', 'text': 'you have huge institutional investors'}, {'start': '1695.360', 'end': '1700.240', 'text': 'that are involved um and as I said they'}, {'start': '1698.399', 'end': '1701.840', 'text': "they're in it obviously because of the"}, {'start': '1700.240', 'end': '1703.279', 'text': "profit motive and they're in it to"}, {'start': '1701.840', 'end': '1705.200', 'text': "protect their investment so they're"}, {'start': '1703.279', 'end': '1706.799', 'text': "going to they're going to make sure that"}, {'start': '1705.200', 'end': '1710.159', 'text': 'they build a quality product that they'}, {'start': '1706.799', 'end': '1712.080', 'text': 'hire the the right managers um uh and'}, {'start': '1710.159', 'end': '1713.520', 'text': 'that the property is maintained uh'}, {'start': '1712.080', 'end': '1715.919', 'text': 'accordingly that they they have the'}, {'start': '1713.520', 'end': '1718.000', 'text': 'right screening criteria for residents'}, {'start': '1715.919', 'end': '1719.679', 'text': "etc and and so So, it's all about"}, {'start': '1718.000', 'end': '1721.520', 'text': 'maintaining the quality to protect the'}, {'start': '1719.679', 'end': '1724.480', 'text': "investment they're making. Where's that"}, {'start': '1721.520', 'end': '1726.880', 'text': 'motivation in in a completely purely'}, {'start': '1724.480', 'end': '1728.559', 'text': "100% public setting? It's not it's not"}, {'start': '1726.880', 'end': '1729.760', 'text': 'there. But you kind of see it with rent'}, {'start': '1728.559', 'end': '1731.360', 'text': "control, right? Because everyone's like,"}, {'start': '1729.760', 'end': '1734.000', 'text': '"Rent control is great." Well, guess'}, {'start': '1731.360', 'end': '1735.600', 'text': "what? If I'm a landlord, keeping you as"}, {'start': '1734.000', 'end': '1737.679', 'text': 'a tenant under rent control is a'}, {'start': '1735.600', 'end': '1740.720', 'text': 'disservice to me, not an incentive. So,'}, {'start': '1737.679', 'end': '1742.960', 'text': 'if you call me and your HVAC systems out'}, {'start': '1740.720', 'end': '1744.559', 'text': "or you, you know, you're unhappy with,"}, {'start': '1742.960', 'end': '1746.480', 'text': 'you know, the temperature of the water,'}, {'start': '1744.559', 'end': '1748.159', 'text': "like I'm going to do legally what I have"}, {'start': '1746.480', 'end': '1749.919', 'text': "to, but I'm not trying to go above and"}, {'start': '1748.159', 'end': '1751.919', 'text': 'beyond because if you are unhappy and'}, {'start': '1749.919', 'end': '1753.440', 'text': 'you move, I actually can charge more to'}, {'start': '1751.919', 'end': '1755.600', 'text': 'the next person. Right. So to your'}, {'start': '1753.440', 'end': '1758.080', 'text': 'point, if there the profit motivation is'}, {'start': '1755.600', 'end': '1760.399', 'text': 'what keeps you on your toes as a'}, {'start': '1758.080', 'end': '1763.520', 'text': 'landlord and on your toes as a tenant,'}, {'start': '1760.399', 'end': '1765.200', 'text': "competition like if somebody's if"}, {'start': '1763.520', 'end': '1767.840', 'text': "there's a piece of land that the city of"}, {'start': '1765.200', 'end': '1769.720', 'text': 'Phoenix says we want housing on it and'}, {'start': '1767.840', 'end': '1772.960', 'text': 'they go out to eight or 10'}, {'start': '1769.720', 'end': '1775.039', 'text': 'groups that is the right way. You you'}, {'start': '1772.960', 'end': '1776.799', 'text': 'got eight or 10 groups, correct? Right.'}, {'start': '1775.039', 'end': '1778.559', 'text': 'Trying to bid on something and and'}, {'start': '1776.799', 'end': '1780.640', 'text': 'sharpening. City of Phoenix is well'}, {'start': '1778.559', 'end': '1782.399', 'text': 'known for doing that and other cities'}, {'start': '1780.640', 'end': '1784.480', 'text': 'are doing as well. They use their the'}, {'start': '1782.399', 'end': '1786.480', 'text': 'the land resources they have at their'}, {'start': '1784.480', 'end': '1787.919', 'text': 'disposal to encourage private sector'}, {'start': '1786.480', 'end': '1789.360', 'text': "investment and they'll provide"}, {'start': '1787.919', 'end': '1790.559', 'text': "incentives and maybe it's through"}, {'start': '1789.360', 'end': '1793.200', 'text': "writing down the land, maybe it's"}, {'start': '1790.559', 'end': '1796.240', 'text': 'through a tax payment, but rent control,'}, {'start': '1793.200', 'end': '1797.679', 'text': 'right? That that will keep you what you'}, {'start': '1796.240', 'end': '1800.240', 'text': "said is exactly right. There's no"}, {'start': '1797.679', 'end': '1803.520', 'text': 'incentive to maintain it um beyond what'}, {'start': '1800.240', 'end': '1806.000', 'text': 'you actually have to, but it may keep a'}, {'start': '1803.520', 'end': '1808.320', 'text': 'a an existing tenant in place paying'}, {'start': '1806.000', 'end': '1810.880', 'text': 'affordable rent, but it does absolutely'}, {'start': '1808.320', 'end': '1812.080', 'text': 'nothing to encourage new supply. Right.'}, {'start': '1810.880', 'end': '1814.320', 'text': "So, you're looking to encourage new"}, {'start': '1812.080', 'end': '1815.840', 'text': 'supply affordable housing, rent control'}, {'start': '1814.320', 'end': '1818.960', 'text': "isn't going to do it. And maintenance,"}, {'start': '1815.840', 'end': '1821.840', 'text': "too. I mean, there's there's historic um"}, {'start': '1818.960', 'end': '1823.840', 'text': 'cases about the maintaining of rent'}, {'start': '1821.840', 'end': '1825.840', 'text': 'control buildings because the landlord'}, {'start': '1823.840', 'end': '1827.360', 'text': "doesn't really have the incentive. No."}, {'start': '1825.840', 'end': '1828.640', 'text': 'But also, like we were saying before,'}, {'start': '1827.360', 'end': '1830.240', 'text': "and once you own a house, you don't want"}, {'start': '1828.640', 'end': '1831.919', 'text': "housing prices to go down. Once you're"}, {'start': '1830.240', 'end': '1833.760', 'text': "in rent control, you're super happy with"}, {'start': '1831.919', 'end': '1836.000', 'text': 'rent control. But until, you know, as a'}, {'start': '1833.760', 'end': '1837.679', 'text': 'tenant, but until you get rent control,'}, {'start': '1836.000', 'end': '1839.360', 'text': 'you know, that just makes prices go up'}, {'start': '1837.679', 'end': '1842.000', 'text': "as you're looking for an apartment and"}, {'start': '1839.360', 'end': '1844.399', 'text': 'it makes no supply, right? But the the'}, {'start': '1842.000', 'end': '1846.399', 'text': 'the same city council person that says'}, {'start': '1844.399', 'end': '1850.480', 'text': 'we need affordable housing is the same'}, {'start': '1846.399', 'end': '1853.039', 'text': "one that's actually um nixing the deal"}, {'start': '1850.480', 'end': '1855.039', 'text': "that that they're try that the developer"}, {'start': '1853.039', 'end': '1856.559', 'text': 'trying to bring it. Right. Absolutely.'}, {'start': '1855.039', 'end': '1858.000', 'text': 'Yeah. Yeah. Well, that gets into an'}, {'start': '1856.559', 'end': '1859.919', 'text': 'interesting question, though. So, what'}, {'start': '1858.000', 'end': '1861.919', 'text': 'types of funding and incentives are'}, {'start': '1859.919', 'end': '1863.760', 'text': 'available right now to developers who'}, {'start': '1861.919', 'end': '1866.080', 'text': "want to build affordable units? That's"}, {'start': '1863.760', 'end': '1868.159', 'text': "working like what's working right now?"}, {'start': '1866.080', 'end': '1869.919', 'text': 'Well, I think a lot of the things that I'}, {'start': '1868.159', 'end': '1873.679', 'text': 'mentioned are working at one level or'}, {'start': '1869.919', 'end': '1876.000', 'text': 'another. Um, and so again, I think the'}, {'start': '1873.679', 'end': '1877.520', 'text': 'low-inccome housing tax credits is is is'}, {'start': '1876.000', 'end': '1878.880', 'text': 'probably one of the biggest biggest'}, {'start': '1877.520', 'end': '1883.279', 'text': 'things. Can you explain what that is?'}, {'start': '1878.880', 'end': '1885.200', 'text': 'Uh, yeah. So, um, uh, developers, um,'}, {'start': '1883.279', 'end': '1886.799', 'text': 'have the ability through through the'}, {'start': '1885.200', 'end': '1890.720', 'text': 'through the federal government to be'}, {'start': '1886.799', 'end': '1893.760', 'text': 'able to qualify for tax credits if they'}, {'start': '1890.720', 'end': '1895.279', 'text': 'build affordable housing. And, and they'}, {'start': '1893.760', 'end': '1896.799', 'text': 'can take those tax credits and'}, {'start': '1895.279', 'end': '1899.440', 'text': 'essentially put them on the market and'}, {'start': '1896.799', 'end': '1901.279', 'text': 'sell them to investors. And so investors'}, {'start': '1899.440', 'end': '1903.120', 'text': 'will purchase the tax credits at some'}, {'start': '1901.279', 'end': '1906.000', 'text': 'discount to the actual value of the'}, {'start': '1903.120', 'end': '1909.840', 'text': 'credits. Um and and in exchange for for'}, {'start': '1906.000', 'end': '1911.120', 'text': 'for that they they invest equity in the'}, {'start': '1909.840', 'end': '1913.039', 'text': 'for being able to take advantage of the'}, {'start': '1911.120', 'end': '1915.279', 'text': 'tax credits they now invest equity in'}, {'start': '1913.039', 'end': '1917.679', 'text': "the project. And so that's how"}, {'start': '1915.279', 'end': '1919.919', 'text': 'low-inccome low in or affordable housing'}, {'start': '1917.679', 'end': '1921.519', 'text': 'developers raise a portion of the equity'}, {'start': '1919.919', 'end': '1924.399', 'text': 'and financing that they need to build'}, {'start': '1921.519', 'end': '1926.320', 'text': "it. That's been a long-standing program."}, {'start': '1924.399', 'end': '1928.640', 'text': 'I think generally it works pretty well,'}, {'start': '1926.320', 'end': '1931.360', 'text': "but it's again it's only a piece of the"}, {'start': '1928.640', 'end': '1934.159', 'text': 'puzzle. Um, you can get you can have'}, {'start': '1931.360', 'end': '1936.720', 'text': 'housing authorities in in states or'}, {'start': '1934.159', 'end': '1940.000', 'text': 'localities that will issue uh tax exempt'}, {'start': '1936.720', 'end': '1941.760', 'text': 'bonds. Um, you can have uh, you know, as'}, {'start': '1940.000', 'end': '1943.440', 'text': "we've got some experience now seeing in"}, {'start': '1941.760', 'end': '1945.279', 'text': 'Texas where you have housing authorities'}, {'start': '1943.440', 'end': '1947.919', 'text': 'that are offering property tax abatement'}, {'start': '1945.279', 'end': '1949.519', 'text': 'in exchange for not necessarily develop'}, {'start': '1947.919', 'end': '1951.360', 'text': 'it could be developing new product, but'}, {'start': '1949.519', 'end': '1953.039', 'text': 'it could also be taking existing product'}, {'start': '1951.360', 'end': '1955.760', 'text': 'and committing a portion of that'}, {'start': '1953.039', 'end': '1958.880', 'text': 'long-term to uh to affordable housing.'}, {'start': '1955.760', 'end': '1960.799', 'text': "That's that's another method. Um there"}, {'start': '1958.880', 'end': '1962.960', 'text': 'are there are block grants from the'}, {'start': '1960.799', 'end': '1964.480', 'text': 'federal government and and again all of'}, {'start': '1962.960', 'end': '1966.720', 'text': "those things are available. They're just"}, {'start': '1964.480', 'end': '1969.039', 'text': 'not an unlimited supply and you tend to'}, {'start': '1966.720', 'end': '1971.840', 'text': 'have to cobble several of them together.'}, {'start': '1969.039', 'end': '1974.640', 'text': "Um uh and and that's what makes it more"}, {'start': '1971.840', 'end': '1976.399', 'text': 'more complex to get the get any project.'}, {'start': '1974.640', 'end': '1978.640', 'text': 'There is one other notable thing that'}, {'start': '1976.399', 'end': '1981.840', 'text': "we've done a few times. It's it's uh the"}, {'start': '1978.640', 'end': '1985.279', 'text': 'housing and urban development HUD uh has'}, {'start': '1981.840', 'end': '1989.440', 'text': "what's called the 221D4 program. Mh. And"}, {'start': '1985.279', 'end': '1992.279', 'text': 'the 221D4 program is a is a construction'}, {'start': '1989.440', 'end': '1995.519', 'text': 'to perm and a 40-year'}, {'start': '1992.279', 'end': '1997.440', 'text': "amortization. So that's actually helps a"}, {'start': '1995.519', 'end': '2000.640', 'text': 'lot. Can you explain that a little bit?'}, {'start': '1997.440', 'end': '2001.919', 'text': "Sure. Like like if you most most let's"}, {'start': '2000.640', 'end': '2003.919', 'text': "say you're getting a mortgage, most of"}, {'start': '2001.919', 'end': '2006.880', 'text': "the time that's going to be advertised"}, {'start': '2003.919', 'end': '2008.960', 'text': 'over 30 years your payment. If you can'}, {'start': '2006.880', 'end': '2011.600', 'text': 'make it 40 years, it just lowers your'}, {'start': '2008.960', 'end': '2014.320', 'text': "lower payment. Got it? So, but there's"}, {'start': '2011.600', 'end': '2017.279', 'text': 'also things inside of that program that'}, {'start': '2014.320', 'end': '2019.679', 'text': "help. It's financing, government"}, {'start': '2017.279', 'end': '2022.799', 'text': 'financing, government approved financing'}, {'start': '2019.679', 'end': '2025.760', 'text': "to build housing. So, we've done several"}, {'start': '2022.799', 'end': '2027.760', 'text': "of those that's called a 221D4 program."}, {'start': '2025.760', 'end': '2029.679', 'text': 'So, the government is trying to do'}, {'start': '2027.760', 'end': '2033.840', 'text': 'things. What one of the other things'}, {'start': '2029.679', 'end': '2036.640', 'text': "that that I've seen recently um is you"}, {'start': '2033.840', 'end': '2039.480', 'text': 'have developers um that will partner'}, {'start': '2036.640', 'end': '2042.480', 'text': 'with major institutions or major'}, {'start': '2039.480', 'end': '2044.080', 'text': 'employers. Um and so you it could be'}, {'start': '2042.480', 'end': '2047.679', 'text': 'with the university where a university'}, {'start': '2044.080', 'end': '2049.520', 'text': 'has as part of its mission or uh to'}, {'start': '2047.679', 'end': '2051.200', 'text': 'provide housing, you know, afford'}, {'start': '2049.520', 'end': '2053.040', 'text': 'affordably priced or attainably priced'}, {'start': '2051.200', 'end': '2054.480', 'text': 'housing for its employees. Could be'}, {'start': '2053.040', 'end': '2055.839', 'text': 'hospitals, right? We talk about'}, {'start': '2054.480', 'end': '2057.440', 'text': "essential workers and that's a good"}, {'start': '2055.839', 'end': '2060.960', 'text': 'example with nurses and so forth,'}, {'start': '2057.440', 'end': '2063.520', 'text': 'technicians and so forth. Um and and so'}, {'start': '2060.960', 'end': '2065.119', 'text': 'you you see developers'}, {'start': '2063.520', 'end': '2068.079', 'text': "um and usually there's a city involved"}, {'start': '2065.119', 'end': '2071.200', 'text': 'in it as well. Um but partner to develop'}, {'start': '2068.079', 'end': '2074.399', 'text': 'um uh sort of purpose-based housing uh'}, {'start': '2071.200', 'end': '2075.760', 'text': 'for a particular uh institution or or or'}, {'start': '2074.399', 'end': '2078.720', 'text': "major employer. So we're seeing that"}, {'start': '2075.760', 'end': '2081.359', 'text': "with Amazon, Google, SpaceX, like it's"}, {'start': '2078.720', 'end': '2084.000', 'text': 'in the news like uh Bezos is involved in'}, {'start': '2081.359', 'end': '2087.119', 'text': 'housing right now because it becomes a'}, {'start': '2084.000', 'end': '2089.440', 'text': "component of his employees. It's attract"}, {'start': '2087.119', 'end': '2092.079', 'text': 'helps them attract, right? So you you'}, {'start': '2089.440', 'end': '2094.320', 'text': "know it's mostly under the radar, but we"}, {'start': '2092.079', 'end': '2097.040', 'text': 'certainly are reading above. Yeah. And'}, {'start': '2094.320', 'end': '2100.320', 'text': 'does that um create kind of competition'}, {'start': '2097.040', 'end': '2102.400', 'text': 'to the the uh class A projects or is'}, {'start': '2100.320', 'end': '2104.720', 'text': 'this mainly separate because Listen, we'}, {'start': '2102.400', 'end': '2108.160', 'text': "all need housing. So it it it's a small"}, {'start': '2104.720', 'end': '2111.520', 'text': 'dent in a positive way. Uh more supply'}, {'start': '2108.160', 'end': '2114.320', 'text': 'is you want the consumer to benefit more'}, {'start': '2111.520', 'end': '2116.800', 'text': 'supply. More houses, more more options.'}, {'start': '2114.320', 'end': '2119.839', 'text': 'More option for houses and more options'}, {'start': '2116.800', 'end': '2121.920', 'text': 'for rent. So on that, what are cities'}, {'start': '2119.839', 'end': '2123.280', 'text': "doing that aren't working? So, what"}, {'start': '2121.920', 'end': '2126.800', 'text': 'policies are David doing that that'}, {'start': '2123.280', 'end': '2129.280', 'text': "doesn't Brian was a city manager, so"}, {'start': '2126.800', 'end': '2132.079', 'text': "uh I'm I mean what's not what isn't"}, {'start': '2129.280', 'end': '2135.760', 'text': "working is um you know if if you're not"}, {'start': '2132.079', 'end': '2137.839', 'text': 'taking a um a modern look at your zoning'}, {'start': '2135.760', 'end': '2139.839', 'text': "and and you're stuck in just your you're"}, {'start': '2137.839', 'end': '2141.599', 'text': "you know basic zoning where you're"}, {'start': '2139.839', 'end': '2146.560', 'text': "you're really focused on separating"}, {'start': '2141.599', 'end': '2150.160', 'text': 'uses, keeping densities low. um uh and'}, {'start': '2146.560', 'end': '2151.839', 'text': 'and and that those tend to to be dis to'}, {'start': '2150.160', 'end': '2154.079', 'text': 'discourage the development of affordable'}, {'start': '2151.839', 'end': '2155.280', 'text': 'housing because they do um raise cost'}, {'start': '2154.079', 'end': '2157.280', 'text': "and make it more difficult. Let's"}, {'start': '2155.280', 'end': '2160.000', 'text': "explain what that means. So So as you're"}, {'start': '2157.280', 'end': '2163.280', 'text': "driving down a road, you'll have single"}, {'start': '2160.000', 'end': '2165.760', 'text': 'family here, retail here, industrial'}, {'start': '2163.280', 'end': '2168.000', 'text': 'here, a mall over here, office buildings'}, {'start': '2165.760', 'end': '2170.000', 'text': "over here. They tend to cluster. That's"}, {'start': '2168.000', 'end': '2174.000', 'text': "called zoning. That's a zoning map."}, {'start': '2170.000', 'end': '2176.000', 'text': 'Correct. Yeah. And so so so you have the'}, {'start': '2174.000', 'end': '2177.680', 'text': 'the the old zoning model is you keep'}, {'start': '2176.000', 'end': '2180.000', 'text': 'your residential here, you keep your'}, {'start': '2177.680', 'end': '2183.680', 'text': 'commercial here, never never do the two'}, {'start': '2180.000', 'end': '2185.599', 'text': "meet. Um and uh and it's and and again"}, {'start': '2183.680', 'end': '2187.359', 'text': "it's very difficult really what where"}, {'start': '2185.599', 'end': '2190.720', 'text': 'affordable housing works best is where'}, {'start': '2187.359', 'end': '2192.720', 'text': "it's part of um you know a mixeduse"}, {'start': '2190.720', 'end': '2194.720', 'text': "community where there's all sorts of"}, {'start': '2192.720', 'end': '2196.240', 'text': 'things going on. People have no idea the'}, {'start': '2194.720', 'end': '2197.760', 'text': "housing's affordable, what the income"}, {'start': '2196.240', 'end': '2199.920', 'text': "the people make. you're just part of a"}, {'start': '2197.760', 'end': '2202.400', 'text': "large community um where there's a"}, {'start': '2199.920', 'end': '2204.079', 'text': 'million things going on, right? Um and'}, {'start': '2202.400', 'end': '2206.320', 'text': "that doesn't happen when you have this"}, {'start': '2204.079', 'end': '2207.760', 'text': 'complete separation of uses. But a lot'}, {'start': '2206.320', 'end': '2209.680', 'text': 'of times now, especially because not'}, {'start': '2207.760', 'end': '2211.359', 'text': 'everybody has a car and not everybody,'}, {'start': '2209.680', 'end': '2213.119', 'text': 'you know, wants long commutes to things'}, {'start': '2211.359', 'end': '2215.119', 'text': "like that's kind of changing anyways,"}, {'start': '2213.119', 'end': '2217.839', 'text': 'right? Like the zoning just in general,'}, {'start': '2215.119', 'end': '2219.920', 'text': 'people wanting mixed use. So, so I said'}, {'start': '2217.839', 'end': '2221.359', 'text': 'the cities who are behind the times is'}, {'start': '2219.920', 'end': '2223.200', 'text': 'really what I was referring to. But I'}, {'start': '2221.359', 'end': '2228.400', 'text': "agree with you. I think you're seeing"}, {'start': '2223.200', 'end': '2229.599', 'text': 'most cities um moving toward more um'}, {'start': '2228.400', 'end': '2232.240', 'text': "progressive I don't mean that"}, {'start': '2229.599', 'end': '2235.040', 'text': 'politically but progressive um zoning uh'}, {'start': '2232.240', 'end': '2236.640', 'text': 'options that focus around transit for'}, {'start': '2235.040', 'end': '2238.240', 'text': "instance. So there's been a lot of light"}, {'start': '2236.640', 'end': '2239.839', 'text': 'rail developed in major cities for'}, {'start': '2238.240', 'end': '2241.920', 'text': 'instance most cities that have light'}, {'start': '2239.839', 'end': '2243.520', 'text': 'rail have developed zoning districts'}, {'start': '2241.920', 'end': '2244.720', 'text': 'around light world where they encourage'}, {'start': '2243.520', 'end': '2246.560', 'text': 'density they actually encourage'}, {'start': '2244.720', 'end': '2248.800', 'text': 'multifamily housing. There may be'}, {'start': '2246.560', 'end': '2250.560', 'text': 'incentives for for creating mixeduse'}, {'start': '2248.800', 'end': '2253.200', 'text': 'districts or mixed income districts'}, {'start': '2250.560', 'end': '2255.200', 'text': 'frankly. So, um, you you see that a lot.'}, {'start': '2253.200', 'end': '2257.280', 'text': 'Now, the the the the flip side of that'}, {'start': '2255.200', 'end': '2259.040', 'text': 'though is oftentimes in those same'}, {'start': '2257.280', 'end': '2260.720', 'text': 'districts, the cities will add design'}, {'start': '2259.040', 'end': '2263.359', 'text': 'standards that you have to meet that'}, {'start': '2260.720', 'end': '2265.400', 'text': "then add cost back. So, so you're always"}, {'start': '2263.359', 'end': '2267.440', 'text': "working through the devil's in the"}, {'start': '2265.400', 'end': '2268.720', 'text': "details. Let's just touch on that real"}, {'start': '2267.440', 'end': '2270.720', 'text': 'quick. So, they might say, you know'}, {'start': '2268.720', 'end': '2272.320', 'text': "what, we don't want you to go that high."}, {'start': '2270.720', 'end': '2274.400', 'text': 'All of a sudden, they lop off a whole'}, {'start': '2272.320', 'end': '2276.320', 'text': 'floor. Whole floor. Yeah. Literally. Or'}, {'start': '2274.400', 'end': '2278.720', 'text': 'they say, you know, we want you to be 20'}, {'start': '2276.320', 'end': '2281.119', 'text': 'or 30 feet back from the street. So all'}, {'start': '2278.720', 'end': '2283.760', 'text': 'of a sudden it takes 50, 60, 70 units'}, {'start': '2281.119', 'end': '2285.440', 'text': 'right out of the project. Those are real'}, {'start': '2283.760', 'end': '2287.760', 'text': 'those are real things that happen and'}, {'start': '2285.440', 'end': '2290.320', 'text': 'all of a sudden you go from wanting to'}, {'start': '2287.760', 'end': '2293.599', 'text': "do 200 units and you're doing 120 or or"}, {'start': '2290.320', 'end': '2296.560', 'text': 'we think you ought to have um you know'}, {'start': '2293.599', 'end': '2298.720', 'text': 'two and a half spaces per unit parking'}, {'start': '2296.560', 'end': '2300.880', 'text': 'spaces per per unit in an area where you'}, {'start': '2298.720', 'end': '2302.480', 'text': 'have to build structured parking, right?'}, {'start': '2300.880', 'end': '2304.000', 'text': "I mean it's it's going to kill those are"}, {'start': '2302.480', 'end': '2306.240', 'text': 'the things those are real and those that'}, {'start': '2304.000', 'end': '2307.760', 'text': "that's what actually kills deals, right?"}, {'start': '2306.240', 'end': '2309.520', 'text': "Because that's what makes a deal have to"}, {'start': '2307.760', 'end': '2311.920', 'text': 'be class A, right? Because if you can'}, {'start': '2309.520', 'end': '2314.240', 'text': 'build 200 units, you can have more'}, {'start': '2311.920', 'end': '2316.720', 'text': 'affordable rent. But then when you go'}, {'start': '2314.240', 'end': '2317.920', 'text': 'down to 125, now the rents have to be'}, {'start': '2316.720', 'end': '2319.839', 'text': "way more. That's correct. What people"}, {'start': '2317.920', 'end': '2322.240', 'text': "think is if we're at 200, if we're at"}, {'start': '2319.839', 'end': '2324.280', 'text': '200 unit, what we want, you know, where'}, {'start': '2322.240', 'end': '2327.040', 'text': "the sweet spot is, it's"}, {'start': '2324.280', 'end': '2329.040', 'text': "affordability. There's way more people"}, {'start': '2327.040', 'end': '2331.839', 'text': 'that need affordable housing that can'}, {'start': '2329.040', 'end': '2333.200', 'text': 'afford expensive stuff. Oh yeah. You'}, {'start': '2331.839', 'end': '2334.960', 'text': 'know what I mean? Like this is a sweet'}, {'start': '2333.200', 'end': '2336.480', 'text': 'spot. We would love if you could build'}, {'start': '2334.960', 'end': '2337.920', 'text': "it. That's right. I think that's why"}, {'start': '2336.480', 'end': '2339.440', 'text': "people get confused because I've talked"}, {'start': '2337.920', 'end': '2342.560', 'text': "to so many they're building so many"}, {'start': '2339.440', 'end': '2344.079', 'text': 'class A in my area like a luxury like'}, {'start': '2342.560', 'end': '2346.000', 'text': "you know I don't know why they don't"}, {'start': '2344.079', 'end': '2347.520', 'text': 'build you know the more basic stuff you'}, {'start': '2346.000', 'end': '2350.960', 'text': 'know cuz everyone to your point wants'}, {'start': '2347.520', 'end': '2352.640', 'text': "that. So in my opinion it's it's a it's"}, {'start': '2350.960', 'end': '2355.359', 'text': "multiple factors but it's a it's a"}, {'start': '2352.640', 'end': '2358.240', 'text': "matter of c you you can't you can't"}, {'start': '2355.359', 'end': '2360.560', 'text': 'afford to build it and then charge'}, {'start': '2358.240', 'end': '2363.440', 'text': 'affordable rents and and and make a'}, {'start': '2360.560', 'end': '2364.880', 'text': "profit and and I'm sorry but that's how"}, {'start': '2363.440', 'end': '2366.160', 'text': 'things get built, right? you have you'}, {'start': '2364.880', 'end': '2367.599', 'text': "have nobody's going to invest the money"}, {'start': '2366.160', 'end': '2370.480', 'text': "if you can't if you can't make a return"}, {'start': '2367.599', 'end': '2372.800', 'text': 'on investment. Two, uh although I think'}, {'start': '2370.480', 'end': '2375.280', 'text': 'it is getting better in many places,'}, {'start': '2372.800', 'end': '2377.520', 'text': "it's just so much harder to build"}, {'start': '2375.280', 'end': '2380.240', 'text': 'affordable set aside the cost the the'}, {'start': '2377.520', 'end': '2382.960', 'text': 'the neighborhood opposition, the city'}, {'start': '2380.240', 'end': '2385.119', 'text': "council opposition. It's so much harder"}, {'start': '2382.960', 'end': '2388.240', 'text': 'to do that even if you can make the cost'}, {'start': '2385.119', 'end': '2389.520', 'text': 'work, but but the but the costs are'}, {'start': '2388.240', 'end': '2391.119', 'text': 'difficult. And then if you can get the'}, {'start': '2389.520', 'end': '2393.760', 'text': 'cost to work, you still got to go find'}, {'start': '2391.119', 'end': '2396.079', 'text': 'the financing. And the financing is also'}, {'start': '2393.760', 'end': '2398.240', 'text': 'much more difficult than than than a'}, {'start': '2396.079', 'end': '2402.240', 'text': 'market rate project. So all of those'}, {'start': '2398.240', 'end': '2404.240', 'text': 'things just work against um you know'}, {'start': '2402.240', 'end': '2406.320', 'text': 'mass construction of of affordable'}, {'start': '2404.240', 'end': '2407.599', 'text': 'housing. So the other programs that'}, {'start': '2406.320', 'end': '2409.520', 'text': "aren't working like you had mentioned"}, {'start': '2407.599', 'end': '2411.920', 'text': "rent control and you know we're not big"}, {'start': '2409.520', 'end': '2414.079', 'text': 'advocates of rent control because it'}, {'start': '2411.920', 'end': '2416.240', 'text': "dampens the supply and it doesn't really"}, {'start': '2414.079', 'end': '2417.520', 'text': "help. It's totally counter to to market"}, {'start': '2416.240', 'end': '2420.079', 'text': "forces, right? I mean, it's the"}, {'start': '2417.520', 'end': '2422.640', 'text': 'government telling you you for no reason'}, {'start': '2420.079', 'end': '2424.400', 'text': 'other than you built the building that'}, {'start': '2422.640', 'end': '2426.880', 'text': 'you cannot charge more more than this.'}, {'start': '2424.400', 'end': '2429.760', 'text': "Now, if you go into the situation, I'd"}, {'start': '2426.880', 'end': '2431.599', 'text': 'like to work with you city to build a'}, {'start': '2429.760', 'end': '2432.800', 'text': 'mixed income or an affordable project.'}, {'start': '2431.599', 'end': '2434.400', 'text': "Well, then you're you're going into it"}, {'start': '2432.800', 'end': '2436.640', 'text': "eyes wide open and you're you're working"}, {'start': '2434.400', 'end': '2438.640', 'text': 'on a partnership to to deliver a product'}, {'start': '2436.640', 'end': '2439.920', 'text': 'that the community needs. Rent control'}, {'start': '2438.640', 'end': '2442.720', 'text': "is a little different. I'll give you an"}, {'start': '2439.920', 'end': '2444.960', 'text': 'example. I got I got something today'}, {'start': '2442.720', 'end': '2447.920', 'text': 'where a guy said I can buy this'}, {'start': '2444.960', 'end': '2450.240', 'text': 'apartment building at a 40% discount. I'}, {'start': '2447.920', 'end': '2452.560', 'text': 'said, "Where is it?" Oregon. I go,'}, {'start': '2450.240', 'end': '2455.359', 'text': '"That\'s why." You know, because Oregon'}, {'start': '2452.560', 'end': '2457.280', 'text': "has a rent control law. And he's like,"}, {'start': '2455.359', 'end': '2460.240', 'text': '"Yeah, they\'re jacking my property'}, {'start': '2457.280', 'end': '2462.640', 'text': 'taxes." And they\'re and they\'re hedging'}, {'start': '2460.240', 'end': '2464.640', 'text': 'what I can do on rent. Yeah. And so you'}, {'start': '2462.640', 'end': '2467.520', 'text': 'have rising expenses and a capped'}, {'start': '2464.640', 'end': '2470.079', 'text': 'income. Yep. Right. And so thus, so'}, {'start': '2467.520', 'end': '2472.400', 'text': "what's happening is the the value of"}, {'start': '2470.079', 'end': '2475.359', 'text': 'whatever the value was based on that'}, {'start': '2472.400', 'end': '2477.280', 'text': 'law, um, you know, the the smart money'}, {'start': '2475.359', 'end': '2479.359', 'text': "goes where it's treated best. That's"}, {'start': '2477.280', 'end': '2481.119', 'text': "right. And that's not Oregon at the"}, {'start': '2479.359', 'end': '2482.400', 'text': 'moment. Yeah. Yeah. Now, is there any'}, {'start': '2481.119', 'end': '2484.160', 'text': "other programs that you're seeing that"}, {'start': '2482.400', 'end': '2487.359', 'text': "aren't working?"}, {'start': '2484.160', 'end': '2489.280', 'text': "Um, I I mean, I think we've in terms of"}, {'start': '2487.359', 'end': '2491.119', 'text': "not working, I think we've probably hit"}, {'start': '2489.280', 'end': '2493.440', 'text': 'hit on the major ones. I think the the'}, {'start': '2491.119', 'end': '2495.599', 'text': "issue is it's not a black and white"}, {'start': '2493.440', 'end': '2498.000', 'text': 'issue. Is it working? Is it not working?'}, {'start': '2495.599', 'end': '2500.640', 'text': 'The the the key is'}, {'start': '2498.000', 'end': '2503.359', 'text': 'um is is to take the programs that that'}, {'start': '2500.640', 'end': '2508.560', 'text': 'you that are available and make them as'}, {'start': '2503.359', 'end': '2510.880', 'text': 'accessible and as easily um executable'}, {'start': '2508.560', 'end': '2512.480', 'text': 'as possible. All of the all of the'}, {'start': '2510.880', 'end': '2514.240', 'text': 'programs that are out there, with'}, {'start': '2512.480', 'end': '2516.240', 'text': 'perhaps the exception of rent control, I'}, {'start': '2514.240', 'end': '2517.760', 'text': "would say um and I'm sure there's some"}, {'start': '2516.240', 'end': '2521.680', 'text': "others I'm not thinking of, but in"}, {'start': '2517.760', 'end': '2524.480', 'text': "general um can be beneficial, but it's"}, {'start': '2521.680', 'end': '2528.079', 'text': 'how hard do you make it to use them? and'}, {'start': '2524.480', 'end': '2530.240', 'text': 'um uh and and and and if you make it'}, {'start': '2528.079', 'end': '2532.319', 'text': 'easy to use them, then I think they can'}, {'start': '2530.240', 'end': '2534.480', 'text': 'all provide some benefit. So, what'}, {'start': '2532.319', 'end': '2536.560', 'text': 'strategies do you see cities starting to'}, {'start': '2534.480', 'end': '2538.480', 'text': 'implement in order to meet these housing'}, {'start': '2536.560', 'end': '2539.920', 'text': 'needs? Well, we talked about some of'}, {'start': '2538.480', 'end': '2543.200', 'text': 'them. I think, you know, using their'}, {'start': '2539.920', 'end': '2545.599', 'text': 'land if they have excess land. Um and'}, {'start': '2543.200', 'end': '2547.680', 'text': 'and I think here in the west that tends'}, {'start': '2545.599', 'end': '2550.240', 'text': "to be uh something that's more available"}, {'start': '2547.680', 'end': '2551.839', 'text': 'to cities than back east where you you'}, {'start': '2550.240', 'end': '2554.400', 'text': 'know for hundreds of years have had'}, {'start': '2551.839', 'end': '2556.000', 'text': 'densely populated cities. So I I think'}, {'start': '2554.400', 'end': '2558.000', 'text': 'doing that I think partnering with the'}, {'start': '2556.000', 'end': '2560.240', 'text': 'the major employers and the institutions'}, {'start': '2558.000', 'end': '2561.920', 'text': 'that we talked about. I think taking so'}, {'start': '2560.240', 'end': '2565.520', 'text': "there's a there's a a type of zoning"}, {'start': '2561.920', 'end': '2568.000', 'text': 'called inclusionary zoning um where um'}, {'start': '2565.520', 'end': '2571.680', 'text': 'uh often times inclusionary zoning is'}, {'start': '2568.000', 'end': '2573.200', 'text': "regulatory. So it it's it's it's if if"}, {'start': '2571.680', 'end': '2575.440', 'text': "you're going to build housing, you have"}, {'start': '2573.200', 'end': '2578.160', 'text': 'to include x% of affordable housing,'}, {'start': '2575.440', 'end': '2580.960', 'text': 'right? So it can be mandatory like that'}, {'start': '2578.160', 'end': '2582.480', 'text': 'or it can be incentive based. And I'}, {'start': '2580.960', 'end': '2584.480', 'text': "think that's another tool that you see"}, {'start': '2582.480', 'end': '2586.560', 'text': 'more and more cities using where instead'}, {'start': '2584.480', 'end': '2589.040', 'text': 'of dictating that you have to build x'}, {'start': '2586.560', 'end': '2591.359', 'text': 'amount, you provide incentives like more'}, {'start': '2589.040', 'end': '2593.280', 'text': 'density, more height, streamline'}, {'start': '2591.359', 'end': '2595.200', 'text': 'permitting processes, maybe fee'}, {'start': '2593.280', 'end': '2597.000', 'text': 'waiverss, maybe there maybe it is tax'}, {'start': '2595.200', 'end': '2598.880', 'text': "abatement, but but oftentimes it's"}, {'start': '2597.000', 'end': '2600.480', 'text': 'nonfinancial in terms of, you know,'}, {'start': '2598.880', 'end': '2602.800', 'text': 'literally handing a check type of thing'}, {'start': '2600.480', 'end': '2604.560', 'text': "or writing off an expense. It's about"}, {'start': '2602.800', 'end': '2606.240', 'text': 'making the the process easier or'}, {'start': '2604.560', 'end': '2609.200', 'text': 'allowing more density. Well, and I know'}, {'start': '2606.240', 'end': '2611.480', 'text': 'MC Companies uses this uses that as a'}, {'start': '2609.200', 'end': '2614.640', 'text': 'bargaining tool too when trying to'}, {'start': '2611.480', 'end': '2616.640', 'text': 'negotiate with cities, right? To be able'}, {'start': '2614.640', 'end': '2619.200', 'text': 'to build is throwing in some affordable'}, {'start': '2616.640', 'end': '2621.599', 'text': 'housing, putting in something for them'}, {'start': '2619.200', 'end': '2623.200', 'text': 'is and also building more. Sometimes'}, {'start': '2621.599', 'end': '2624.720', 'text': "it's a requirement by the city."}, {'start': '2623.200', 'end': '2627.359', 'text': "Sometimes it's a requirement of"}, {'start': '2624.720', 'end': '2630.560', 'text': 'financing, you know. Yeah. Yeah, it can'}, {'start': '2627.359', 'end': '2635.000', 'text': 'be. Yeah, it can be. So yes, obviously I'}, {'start': '2630.560', 'end': '2638.079', 'text': "I you know I'm telling you and all our"}, {'start': '2635.000', 'end': '2641.440', 'text': 'friends have to build class A, right?'}, {'start': '2638.079', 'end': '2645.599', 'text': 'Yeah. Yeah. We have to we actually have'}, {'start': '2641.440', 'end': '2647.960', 'text': "no option. Yeah. And we know that it's"}, {'start': '2645.599', 'end': '2651.000', 'text': "it's probably what the top"}, {'start': '2647.960', 'end': '2654.319', 'text': "20%. So we can't build for the bottom"}, {'start': '2651.000', 'end': '2656.880', 'text': '80%. Even if we wanted to, we need the'}, {'start': '2654.319', 'end': '2658.640', 'text': 'city to help. Period. Right. City or'}, {'start': '2656.880', 'end': '2661.359', 'text': 'state? Yeah. city or state, you have to'}, {'start': '2658.640', 'end': '2663.599', 'text': "have help to do it. You can't deliver"}, {'start': '2661.359', 'end': '2665.440', 'text': 'it. You know, cost of a 2x4 and a cost'}, {'start': '2663.599', 'end': '2667.599', 'text': 'of drywall and a cost of an appliance is'}, {'start': '2665.440', 'end': '2669.760', 'text': 'the same for me as it is for you. There'}, {'start': '2667.599', 'end': '2672.560', 'text': 'are there are right there are a few'}, {'start': '2669.760', 'end': '2674.319', 'text': 'developers who are building again what I'}, {'start': '2672.560', 'end': '2676.240', 'text': 'would call workforce a tamely price'}, {'start': '2674.319', 'end': '2678.960', 'text': 'housing without government assistance,'}, {'start': '2676.240', 'end': '2682.079', 'text': "but that's that that is definitely the"}, {'start': '2678.960', 'end': '2683.680', 'text': 'the the middle and not the true lower'}, {'start': '2682.079', 'end': '2686.240', 'text': "income housing that that's that's"}, {'start': '2683.680', 'end': '2690.319', 'text': "needed. Um the the other thing that I've"}, {'start': '2686.240', 'end': '2691.680', 'text': 'seen is um or you hear about is um more'}, {'start': '2690.319', 'end': '2694.079', 'text': "flexible building codes where you're"}, {'start': '2691.680', 'end': '2696.000', 'text': 'allowing modular uh housing. So that'}, {'start': '2694.079', 'end': '2698.000', 'text': 'that is you know a cheaper less'}, {'start': '2696.000', 'end': '2700.079', 'text': 'expensive area. Well essentially'}, {'start': '2698.000', 'end': '2702.079', 'text': 'pre-fabricated housing that can be built'}, {'start': '2700.079', 'end': '2704.319', 'text': 'in a in a in a plant and then delivered'}, {'start': '2702.079', 'end': '2707.520', 'text': 'on site and and that is theoretically'}, {'start': '2704.319', 'end': '2711.119', 'text': 'cheaper and quicker to build. um you'}, {'start': '2707.520', 'end': '2712.560', 'text': 'know it tends to be um although the'}, {'start': '2711.119', 'end': '2715.359', 'text': 'technolog is improving on that'}, {'start': '2712.560', 'end': '2716.800', 'text': 'historically has not been um as high'}, {'start': '2715.359', 'end': '2721.359', 'text': 'quality but I think technolog is'}, {'start': '2716.800', 'end': '2723.680', 'text': 'improving that a bit adus too right is'}, {'start': '2721.359', 'end': '2726.560', 'text': 'another one you could duplexes triplexes'}, {'start': '2723.680', 'end': '2728.560', 'text': 'ADUs are y those are important yes they'}, {'start': '2726.560', 'end': '2731.280', 'text': 'are like if you have a half acre and you'}, {'start': '2728.560', 'end': '2733.599', 'text': 'could put four units on it y versus one'}, {'start': '2731.280', 'end': '2736.000', 'text': 'y that helps because the land cost'}, {'start': '2733.599', 'end': '2737.680', 'text': "doesn't change I'll tell you one thing"}, {'start': '2736.000', 'end': '2740.640', 'text': 'that I thing you asked about tools that'}, {'start': '2737.680', 'end': '2742.640', 'text': "aren't working. Um the adapt so there's"}, {'start': '2740.640', 'end': '2744.720', 'text': 'a lot of office buildings right that are'}, {'start': '2742.640', 'end': '2746.800', 'text': "that are obsolete and aren't going to be"}, {'start': '2744.720', 'end': '2749.680', 'text': 'repopulated as office. So you see a lot'}, {'start': '2746.800', 'end': '2751.960', 'text': 'of con of of conversions or at least'}, {'start': '2749.680', 'end': '2755.280', 'text': 'desire to convert office buildings to'}, {'start': '2751.960', 'end': '2756.960', 'text': "residential and that can happen but it's"}, {'start': '2755.280', 'end': '2759.280', 'text': "really difficult to do. It's difficult"}, {'start': '2756.960', 'end': '2760.880', 'text': 'to do at all number one. Uh you might'}, {'start': '2759.280', 'end': '2762.560', 'text': 'luck out and get an office building'}, {'start': '2760.880', 'end': '2764.720', 'text': "that's got the right floor plate and so"}, {'start': '2762.560', 'end': '2767.200', 'text': 'forth but you know the floor plates are'}, {'start': '2764.720', 'end': '2768.800', 'text': 'often really deep. uh for and and and so'}, {'start': '2767.200', 'end': '2771.200', 'text': "you don't get a lot of natural light."}, {'start': '2768.800', 'end': '2772.480', 'text': 'You got um mechanical, plumbing,'}, {'start': '2771.200', 'end': '2774.720', 'text': 'electrical systems that have to be'}, {'start': '2772.480', 'end': '2776.880', 'text': 'adapted from, you know, whole floors to'}, {'start': '2774.720', 'end': '2779.599', 'text': "now individual units. So, it's expensive"}, {'start': '2776.880', 'end': '2781.119', 'text': "to do. And it's a it's a good goal to"}, {'start': '2779.599', 'end': '2783.760', 'text': 'take those buildings and convert them'}, {'start': '2781.119', 'end': '2785.440', 'text': 'into housing that the the chances of'}, {'start': '2783.760', 'end': '2788.000', 'text': 'those becoming affordable housing'}, {'start': '2785.440', 'end': '2790.240', 'text': 'without significant public assistance or'}, {'start': '2788.000', 'end': '2792.240', 'text': "nil. Yeah. Very. You're better to you're"}, {'start': '2790.240', 'end': '2794.240', 'text': 'better to write it down. Yeah. But now'}, {'start': '2792.240', 'end': '2796.720', 'text': 'then you have the land plus the cost of'}, {'start': '2794.240', 'end': '2799.200', 'text': 'demo. a demo of some big buildings.'}, {'start': '2796.720', 'end': '2801.520', 'text': "Yeah. No, but it's true now. All those"}, {'start': '2799.200', 'end': '2804.000', 'text': 'things are accurate. Yeah. It the'}, {'start': '2801.520', 'end': '2805.280', 'text': 'conversion is almost impossible. Yeah.'}, {'start': '2804.000', 'end': '2807.200', 'text': 'You know, we had talked about that cuz'}, {'start': '2805.280', 'end': '2810.000', 'text': 'we had a engineer or something explain'}, {'start': '2807.200', 'end': '2811.440', 'text': 'to us that, you know, the HVAC units are'}, {'start': '2810.000', 'end': '2813.280', 'text': 'different and the ceiling heights are'}, {'start': '2811.440', 'end': '2815.200', 'text': 'different and you only have one or two'}, {'start': '2813.280', 'end': '2816.880', 'text': 'bathrooms a floor and exiting'}, {'start': '2815.200', 'end': '2819.520', 'text': 'requirements are different. So, yeah,'}, {'start': '2816.880', 'end': '2823.440', 'text': "it's a lot. Yeah. I I I I will say the"}, {'start': '2819.520', 'end': '2826.960', 'text': 'lowhanging fruit is um if it was allowed'}, {'start': '2823.440', 'end': '2830.079', 'text': 'would be people are just fine living in'}, {'start': '2826.960', 'end': '2831.040', 'text': "500 600 square foot that it's clean well"}, {'start': '2830.079', 'end': '2834.480', 'text': "maintained. Wouldn't you agree with"}, {'start': '2831.040', 'end': '2837.119', 'text': 'that? I agree. But nobody wants that'}, {'start': '2834.480', 'end': '2839.200', 'text': 'like that particularly out in the west I'}, {'start': '2837.119', 'end': '2841.839', 'text': 'would say. Yeah. If we could build that'}, {'start': '2839.200', 'end': '2844.240', 'text': 'if we could build a a 500 600 square'}, {'start': '2841.839', 'end': '2846.480', 'text': "foot is plenty, right? It's got a"}, {'start': '2844.240', 'end': '2848.240', 'text': "bathroom. It's got a kitchen. Maybe it"}, {'start': '2846.480', 'end': '2850.319', 'text': 'has a bedroom. You could probably slip a'}, {'start': '2848.240', 'end': '2853.119', 'text': "bedroom in there. And I'm telling you"}, {'start': '2850.319', 'end': '2854.720', 'text': 'that if we could build a ton of those,'}, {'start': '2853.119', 'end': '2857.440', 'text': 'they would fly out. And you do, but is'}, {'start': '2854.720', 'end': '2859.240', 'text': 'is it is it a cost issue that you do you'}, {'start': '2857.440', 'end': '2862.000', 'text': "think Scottdale's going to want 400 of"}, {'start': '2859.240', 'end': '2863.440', 'text': 'those of those? You do see it. So you do'}, {'start': '2862.000', 'end': '2864.720', 'text': 'have some of those in downtown Phoenix.'}, {'start': '2863.440', 'end': '2866.560', 'text': 'You do have some of those in downtown'}, {'start': '2864.720', 'end': '2870.160', 'text': "Temp. Now oftentimes they're referred to"}, {'start': '2866.560', 'end': '2872.079', 'text': 'as micro units. Um and so um and and'}, {'start': '2870.160', 'end': '2874.560', 'text': 'they can be student purpose, but they'}, {'start': '2872.079', 'end': '2876.480', 'text': "don't they don't have to be. Um and so"}, {'start': '2874.560', 'end': '2878.000', 'text': 'you can have four to 600 square foot'}, {'start': '2876.480', 'end': '2879.920', 'text': 'units. sometimes even less. Even less'}, {'start': '2878.000', 'end': '2882.240', 'text': "we've seen. But particularly when you"}, {'start': '2879.920', 'end': '2884.079', 'text': 'put them in areas where where pe people'}, {'start': '2882.240', 'end': '2885.680', 'text': 'want to be in those areas and the urban'}, {'start': '2884.079', 'end': '2887.440', 'text': "areas, right, where they they've moved"}, {'start': '2885.680', 'end': '2889.040', 'text': 'there for the bars and the nightclubs'}, {'start': '2887.440', 'end': '2890.920', 'text': 'and the restaurants and the museums and'}, {'start': '2889.040', 'end': '2894.240', 'text': 'the sports and everything else and the'}, {'start': '2890.920', 'end': '2895.839', 'text': 'walkability and the employment. Um they'}, {'start': '2894.240', 'end': '2897.440', 'text': 'they can really work because people want'}, {'start': '2895.839', 'end': '2900.560', 'text': "to be in those areas. They're willing to"}, {'start': '2897.440', 'end': '2902.240', 'text': 'sacrifice size for affordability and the'}, {'start': '2900.560', 'end': '2903.520', 'text': 'ability to actually live in the in the'}, {'start': '2902.240', 'end': '2905.359', 'text': 'in the environment that they want to'}, {'start': '2903.520', 'end': '2908.079', 'text': "live in. Yeah. It's called walkability."}, {'start': '2905.359', 'end': '2909.760', 'text': 'Do you think though that you know people'}, {'start': '2908.079', 'end': '2911.599', 'text': 'want those units right now because rent'}, {'start': '2909.760', 'end': '2914.079', 'text': 'is unaffordable, but if we were to have'}, {'start': '2911.599', 'end': '2916.280', 'text': 'an issue of over supply continued and we'}, {'start': '2914.079', 'end': '2918.559', 'text': 'had like a lowering of rents'}, {'start': '2916.280', 'end': '2921.280', 'text': 'significantly, then you know those would'}, {'start': '2918.559', 'end': '2923.839', 'text': 'kind of be not as popular right back to'}, {'start': '2921.280', 'end': '2925.119', 'text': 'downtown Phoenix at 4 months free.'}, {'start': '2923.839', 'end': '2926.880', 'text': "That's where it is right now. That's"}, {'start': '2925.119', 'end': '2928.119', 'text': 'where it is right now. But I still think'}, {'start': '2926.880', 'end': '2930.160', 'text': "that's a"}, {'start': '2928.119', 'end': '2931.760', 'text': 'relatively right in the in the big'}, {'start': '2930.160', 'end': '2934.160', 'text': "scheme of things. It's a relatively"}, {'start': '2931.760', 'end': '2937.040', 'text': 'short-term situation. I I I think that'}, {'start': '2934.160', 'end': '2939.839', 'text': 'that um the micro unit type of project'}, {'start': '2937.040', 'end': '2941.920', 'text': 'is is is a viable me too medium to'}, {'start': '2939.839', 'end': '2945.200', 'text': 'long-term solution. Yeah, we if we could'}, {'start': '2941.920', 'end': '2947.359', 'text': 'do those, we would embrace that crazy. I'}, {'start': '2945.200', 'end': '2948.880', 'text': 'mean, that that would really solve a lot'}, {'start': '2947.359', 'end': '2950.880', 'text': 'of things. It would it would hit the'}, {'start': '2948.880', 'end': '2952.800', 'text': 'market perfectly. We would we could'}, {'start': '2950.880', 'end': '2954.880', 'text': 'provide really nice, well-maintained,'}, {'start': '2952.800', 'end': '2957.040', 'text': 'well-managed, affordable, affordable'}, {'start': '2954.880', 'end': '2960.000', 'text': 'units. It would be a win-win for'}, {'start': '2957.040', 'end': '2961.440', 'text': 'everyone. Uh I mean, problem is no one'}, {'start': '2960.000', 'end': '2963.440', 'text': 'can do those. No one would want it.'}, {'start': '2961.440', 'end': '2965.040', 'text': 'Well, they I mean you can you can drive'}, {'start': '2963.440', 'end': '2967.680', 'text': 'very high per square foot rents on'}, {'start': '2965.040', 'end': '2969.760', 'text': 'those, right? So the the the the the big'}, {'start': '2967.680', 'end': '2972.559', 'text': 'the nut for the unit is small, but the'}, {'start': '2969.760', 'end': '2974.079', 'text': 'per square foot is high. Um and and'}, {'start': '2972.559', 'end': '2975.760', 'text': "there's institutional investment going"}, {'start': '2974.079', 'end': '2978.240', 'text': 'into those. We we were involved in some'}, {'start': '2975.760', 'end': '2980.880', 'text': 'of those uh down around the ASU campus'}, {'start': '2978.240', 'end': '2983.200', 'text': 'and uh uh they they can work. They can'}, {'start': '2980.880', 'end': '2984.720', 'text': 'work. Arizona State uh Ryan was'}, {'start': '2983.200', 'end': '2986.079', 'text': 'quarterbacking all that all that'}, {'start': '2984.720', 'end': '2988.079', 'text': 'development right around the university'}, {'start': '2986.079', 'end': '2991.200', 'text': 'there. And that you know and these are'}, {'start': '2988.079', 'end': '2994.559', 'text': '300 350 square footers for correct'}, {'start': '2991.200', 'end': '2996.079', 'text': 'correct. So we get $2.50 $3 a foot over'}, {'start': '2994.559', 'end': '2999.040', 'text': 'three bucks each. Yeah. So that that'}, {'start': '2996.079', 'end': '3000.400', 'text': 'means the 350 square foot is $1,000.'}, {'start': '2999.040', 'end': '3002.559', 'text': 'Well, you know where we saw that on the'}, {'start': '3000.400', 'end': '3004.160', 'text': 'single family side was in the ADU market'}, {'start': '3002.559', 'end': '3006.240', 'text': 'or you know how people were buying those'}, {'start': '3004.160', 'end': '3007.680', 'text': 'modular like homes and putting them you'}, {'start': '3006.240', 'end': '3009.599', 'text': 'know cuz we had talked to people that'}, {'start': '3007.680', 'end': '3011.520', 'text': 'were doing um that were doing that right'}, {'start': '3009.599', 'end': '3013.440', 'text': 'putting an ADU on their property and'}, {'start': '3011.520', 'end': '3015.680', 'text': 'their their rents were high for the size'}, {'start': '3013.440', 'end': '3018.640', 'text': "of the unit. It's just crazy to think"}, {'start': '3015.680', 'end': '3021.559', 'text': 'that. I mean, you you know, um Brian and'}, {'start': '3018.640', 'end': '3024.720', 'text': 'I are a little bit older than you, but'}, {'start': '3021.559', 'end': '3026.480', 'text': '$1,000 is an affordable rent now. That'}, {'start': '3024.720', 'end': '3029.680', 'text': "That's ridiculous. It's incredible,"}, {'start': '3026.480', 'end': '3032.920', 'text': 'right? Ridiculous. Yeah. That is so'}, {'start': '3029.680', 'end': '3036.240', 'text': 'start with the stat I said ear. So So'}, {'start': '3032.920', 'end': '3038.160', 'text': '$1,500 a month for someone making 60,000'}, {'start': '3036.240', 'end': '3040.240', 'text': 'is considered affordable. $1,500 a'}, {'start': '3038.160', 'end': '3042.800', 'text': "month. Yeah. Yeah. And that's that's"}, {'start': '3040.240', 'end': '3045.440', 'text': 'about and not in Scottsdale certainly,'}, {'start': '3042.800', 'end': '3047.200', 'text': "but uh that's that's about the right"}, {'start': '3045.440', 'end': '3048.480', 'text': "number right now these days. Yeah, it's"}, {'start': '3047.200', 'end': '3049.920', 'text': "about I mean that's that's that's"}, {'start': '3048.480', 'end': '3051.599', 'text': "basically whether it's the average or"}, {'start': '3049.920', 'end': '3054.400', 'text': "the or the median, they're both right"}, {'start': '3051.599', 'end': '3055.599', 'text': "right in that area. Um that's that's"}, {'start': '3054.400', 'end': '3058.079', 'text': "about what you're going to find. But"}, {'start': '3055.599', 'end': '3059.839', 'text': 'that also means half of the units are'}, {'start': '3058.079', 'end': '3062.160', 'text': 'are are I should go this way. Half of'}, {'start': '3059.839', 'end': '3065.280', 'text': 'the units are much much higher than than'}, {'start': '3062.160', 'end': '3067.920', 'text': 'that. So yeah. Yeah. Well, thanks for'}, {'start': '3065.280', 'end': '3070.000', 'text': 'being on, Brian. He was really uh'}, {'start': '3067.920', 'end': '3072.400', 'text': 'informative. Good. Thanks. Well, thanks'}, {'start': '3070.000', 'end': '3072.400', 'text': 'for having me.'}]