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>>WELCOME
>>BACK EVERYONE TO YOUR FUTURE
HOME BROUGHT TO BY ROCKET
MORTGAGE BY QUICKEN LOANS WHERE
YOU GET MORE THAN EXPECTED FROM
A MORTGAGE LENDER AFFORDABLE
HOUSING DOESN'T HAVE TO COME AT
THE EXPENSE OF CORPORATE
PROFITS. ACCORDING TO ONLINE
MAGAZINE NATIONAL REAL ESTATE
INVESTOR THANKS TO THE
CONTINUED DEMAND FOR THIS TYPE
HOUSING, MORE INVESTORS ARE
COMING FORWARD TO
PUT CAPITAL TO FINANCE THESE
BUILDINGS THING IS DISCUSS HOW
JONATHAN ROSE
COMPANIES IS BUILDING UP HOMES
FOR MIXED INCOME FAMILIES IS A
PARTNER AND MANAGING DIRECTOR
OF ACQUISITIONS
NATHAN IT HALF THINK THAT
THANKS FOR JOINING US HERE
TODAY, THANKS. THANKS FOR
HAVING ME OK SO WHY START
INFLUX OF INVESTORS GETTING IN
ON AFFORDABLE
HOUSING COMPARED TO SAY 5 YEARS
AGO.
>>RIGHT WELL, THANKS FOR THE
QUESTION. I MEAN I THINK THE
ISSUE IS WE'RE HAVING A CRISIS
IN AFFORDABLE HOUSING IN THIS
COUNTRY. I MEAN MORE THAN
19 MILLION AMERICAN FAMILIES
RIGHT NOW ARE PAYING MORE THAN
50% OF THEIR INCOME ON HOUSING
COSTS THAT MEANS THAT THE COST
BURDEN. SO THERE IS TREMENDOUS
DEMAND IN EVERY MARKET THAT
WE'RE WORKING AND AROUND THE
COUNTRY. YOU KNOW WE'RE SEEING
THAT THAT LACK OF SUPPLY OF
AFFORDABLE HOUSING SO PEOPLE
ARE SEEING, ESPECIALLY CITIES.
AND OUR PARTNERS ARE SEEING
THAT THIS IS THE
BEST WAY THAT THEY CAN REALLY
HELP SO THE ISSUE IS INVESTING
IN THE PRESERVATION OF
EXISTING HOUSING AND ALSO
CREATING HOUSINGS THAT'S I
THINK WHAT PEOPLE ARE GETTING
ATTRACTIVE SHE LOOKS TIDY PER A
LITTLE BIT INTERSTATE THE
JONATHAN ROSE COMPANIES BUILD
COMMUNITIES OF OPPORTUNITY OUT
THERE HOW IS THAT DIFFERENT
FROM OPPORTUNITY ZONES. YEAH,
GREAT QUESTION.
>>SO. OPPORTUNITY ZONES IS
LEGISLATION
THAT CAME OUT OF TAX REFORM
MOST RECENTLY RIGHT WHERE
BASICALLY GETTING A
REINVESTMENT OF CAP GAINS INTO
ARE SORT OF NEEDIEST MARKETS
AROUND THE COUNTRY WHICH IS A
REALLY EXCITING SORT OF
INITIATIVE. THE FOCUS THERE
THOUGH IS THAT THAT LEGISLATION
ACTUALLY REQUIRES YOU TO DOUBLE
YOUR BASIS. WHICH MEANS THAT
FOR US WE'RE WORKING A LOT IN
THE PRESERVATION OF EXISTING
OPERATING PROPERTIES. IT REALLY
DOESN'T WORK WHEN YOU'RE BUYING
A THE GREAT CATHOLIC ACID.
YOU CAN ACTUALLY PAY SORT OF
AND REINVEST THE SAME AMOUNT
THAT YOU PAID IN THE PURCHASE
PRICE IN IT SO IT'S REALLY
FOCUSED ON THE DEVELOPMENT.
WE WERE NOT USING IT IT'S NOT
REALLY A BIG PIECE FOR US WE DO
ON 20 PROPERTIES IN OPPORTUNE
ZONES AROUND THE COUNTRY BUT
IT'S DIFFERENT COMMUNITY THE
OPPORTUNITY FOR US. IT'S REALLY
ABOUT CONNECTING THE PEOPLE WHO
LIVE IN OUR PROPERTIES TO
MAKING SURE ONE THAT WOULD PICK
GREAT LOCATIONS. BUT THEN ALSO
PROVIDING THEM JOB TRAINING
LANGUAGE TRAINING, WE'RE
BRINGING HEALTHY FOODS FOR
BRINGING THINGS LIKE THE BRUSH
BUS FOR KIDS TO LEARN HOW TO
BRUSH YOUR TEETH INTO AGAIN
WE'RE MINISTRY TAKE KIND OF
LOWER INCOME FAMILIES REALLY
DON'T HAVE. SOME OF
THE BASICS AND WE WANT TO HELP
THEM GET THERE.
>>YEAH, THE SERVICE IS
ABSOLUTELY KEY. SO WHEN YOU ARE
DECIDING ON LOCATIONS
FOR THESE AFFORDABLE HOUSING
DEVELOPMENTS. WHAT DO YOU LOOK
FOR IN THE LAND THE SURROUNDING
AREA WHERE THE FACTORS THAT
CONTRIBUTE TO THOSE DECISIONS
THAT'S A GREAT QUESTION.
I MEAN I THINK THE INTERESTING
THING IS LAND IS THAT LIKE A
HUGE PREMIUM RIGHT NOW
EVERYWHERE AROUND THE COUNTRY
FINDING LAND FOR BUILDING.
>>NOT TO MENTION FOR AFFORDABLE
HOUSING IS REALLY TOUGH AND THE
ECONOMICS AFFORDABLE HOUSING
MEAN THAT THAT LAND HAS TO BE
THEY WILL PRICE. WE'RE ACTUALLY
BUILDING 700 UNITS NEW MIXED
INCOME FOR THE HOUSING WON THE
LAST LARGE SCALE SITES HERE IN
NEW YORK CITY. THE PROJECT
CALLED CINDER VERDI IN EAST
HARLEM THAT ARE REALLY EXCITED
ABOUT. BUT WHEN WE'RE LOOKING
AT LAND. WE'RE THINKING ABOUT
TRANSIT CONNECTIVITY LOT OF THE
DATA SHOWS THAT ACTUALLY
COMMUTING TO AND FROM THE
BUILDING CAN CONSUME TWICE THE
ENERGY OF THE BUILDING ITSELF
AND
SO WHAT WE'RE DOING IS WHEN YOU
BUY LOCATING GREAT ASSETS IN
THESE LOCATIONS ARE ACTUALLY
HELPING TO NOT ONLY HAVE A
BETTER FINANCIAL COME, BUT
CHARLES HAVING A BETTER
ENVIRONMENT WELCOME THIS WHOLE
CONCEPT ABOUT VEHICLE MILES
TRAVELED. AND THAT'S BASICALLY
MEANS JUST LOOKING AT HOW MUCH
ENERGY IS BEING CONSUMED BY
THESE PEOPLE COMMUTING TO THEIR
JOBS. WE'RE TRYING TO REDUCE
THAT VMT IN THAT AGAIN HAS A
BETTER FINANCIAL COME, BUT ALSO
BETTER ENVIRONMENTAL BENEFIT
USE WHAT ARE THE LONG-TERM
BENEFITS TO CATERING TO
THE AFFORDABLE HOUSING MARKET
OUT THERE.
>>YEAH I MEAN I THINK LOOK I
THINK A LOT OF PEOPLE MAYBE I'M
MISCONSTRUED OR MISUNDERSTAND
WHAT AFFORDABLE HOUSING.
IT'S RIGHT. I MEAN THESE ARE
PEOPLE WHO ARE ALL OF US IN
IN TERMS YOU KNOW EVERYTHING
FROM FIRE AND POLICE TO IT A
CRITICAL SERVICE WORKERS.
SO WHAT WE REALLY BELIEVE IN IS
THAT AFFORDABLE HOUSING IS THIS
CRITICAL TOOL FOR MAINTAINING
VERY DYNAMIC.
YOU RESOURCEFUL AND THRIVING
COMMUNITIES AND IT'S WHAT WE
NEED I THINK IN CITIES SO
THAT I THINK IS WHAT IS ONE OF
THE BENEFITS OF FOCUSING ON IT
IN THE LONG TERM IS KEEPING,
YOU KNOW WHAT YOU SEE IN NATURE
IS OF SEE THE MODEL CULTURES
DON'T REALLY THRIVE DYNAMIC
KIND OF MIXED COMMUNITIES, THEY
DO THRIVE AND THEY'RE JUST
MORE FUN TO BE IN.
>>BUT THEN WHAT ARE SOME OF THE
BIGGER CHALLENGES THAN IN
CREATING AFFORDABLE HOUSING
VERSUS LUXURY
BUILDINGS FOR EXAMPLE, WHAT ARE
THE THE CHALLENGE IS ENDEMIC TO
AFFORDABLE HOUSING. YEAH, IT'S
A GREAT QUESTION. I MEAN I
THINK I'M ONE OF
THE THINGS I WOULD SAY IS
AFFORDABLE HOUSING REALLY
THRIVES ON PUBLIC PRIVATE
PARTNERSHIPS AND THERE ARE LOTS
OF STAKEHOLDERS THERE ARE A LOT
OF PEOPLE HERE YOU'RE DEALING
COMMUNITIES, YOU'RE DEALING
WITH GOVERNMENT AGENCIES ARE
DEALING WITH THEM.
PRIVATE MARKETS. SO THERE
THERE'S SOME COMPLEXITY IN
MANAGING SERVE ALL THESE
DIFFERENT STAKEHOLDERS TO GET
AN OUTCOME.
I THINK GOES BACK TO THE OTHER
THING IS TALKING ABOUT IS FOR
THIS NIMBYISM AROUND AROUND A
MISUNDERSTANDING OF WHAT
AFFORDABLE HOUSING IS WE REALLY
TRY TO TURN THE MODEL ON ITS
HEAD AND DEMONSTRATE THAT YOU
CAN BRING SORT OF LIKE REALLY
HIGH DESIGN GREAT QUALITY
PRODUCT TO THE AFFORDABLE
HOUSING SPACE. A LOT OF OUR
EXISTING AFFORDABLE HOUSING IS
AGING OLD MORE THAN 40 YEARS
OLD. AND WHAT WE'VE
DEMONSTRATED
FRANKLY WITH THE TRACK RECORD
OF OUR COMPANY AND WE HAVE
WE'LL TOP IN THE 15,000 UNITS
THAT NATIONALLY IS THAT
AFFORDABLE HOUSING DOESN'T HAVE
TO BE SORT OF THE LOWEST
QUALITY HOUSING YOU CAN REALLY
BE SIMPLE
ENERGY-EFFICIENT GREEN, BRIGHT
LIGHT IN GREAT PLACES TO LET
YOU SAID GREEN AND I WANT TO
GET ON THAT FROM OWN BECAUSE
YOU'RE SEEING THIS UPTICK IN
RISE IN ENVIRONMENTALLY
SUSTAINABLE
HOUSING BUILDINGS RIGHT
THROUGHOUT THE YEARS.
>>AT A LOT OF YOUR BUILDINGS OR
LEED CERTIFIED AS WELL WHICH IS
VERY IMPORTANT OUT THERE
EXPLAIN TO OUR VIEWERS WHAT
THAT MEANS WHAT SORT OF
TECHNOLOGIES ARE YOU WOULD
STALLING
WHEN YOU USE THAT GREAT THANKS
FOR THE QUESTION. I MEAN.
>>SO USING LEAD IS A STANDARD
THAT ACTUALLY HAVEN'T WHERE WE
3RD PARTY VERIFY THE GREEN
BUILDING THAT WE'RE WHAT'S
IMPORTANT PART ABOUT THAT IS
THAT WHETHER USING LEAD OR
THERE'S OTHER STANDARD TO USE
FOR AFFORDABLE HOUSING
ENTERPRISE GREEN COMMUNITIES.
WHEN YOU HAVE A 3RD PARTY
STANDARD. IT MEANS THAT WE CAN
GO BEYOND JUST SAYING TO TRUST
US WE'RE CREATING FOR ABOUT IT.
THIS IS 3RD PARTY VERIFIED AND
IT MEANS THAT WE'RE USING THE
LATEST GREEN BUILDING
TECHNOLOGIES, WE'RE FOCUSED ON
ENERGY EFFICIENCY BUT ALSO THE
HEALTH AND WELLNESS AND THE
INDOOR AIR QUALITY FOR
ATTENDANCE AND SO THAT'S REALLY
IMPORTANT HAVING THAT GREAT
THAT SORT OF HOUSEKEEPING SEAL
OF APPROVAL ON NEW PRODUCTS IS
KEY THAT'S WHAT THE STANDARDS
ARE ABOUT. AND SO
YOU KNOW FOR US IT'S AGAIN IT'S
IT'S LOW FLOW FIXTURES ITS HIGH
EFFICIENCY LIGHTING IT'S THE
BEST HPC AND IT'S GOOD INDOOR
AIR QUALITY AND I THINK FOR US
WE'VE SEEN THAT THE REALLY
IMPORTANT THING BECAUSE
ESPECIALLY FOR LOW INCOME FOLKS
WHO HAVE BEEN LIVING IN
POOR HOUSING, STOCKS IN
TROUBLED NEIGHBORHOODS AND
WHERE AIR POLLUTION MIGHT BE
WORSE HAVING A SAFE STABLE BASE
WITH GREAT GREEN EFFICIENT AND
HEALTHY
HOUSING IS LIKE A HUGE THING
FOR THEM.
>>ALL RIGHT THAT'S GREAT STUFF.
THANKS SO THATS NATHAN TAFT
PARTNER AND MANAGING DIRECTOR
OF ACQUISITIONS THAT JONATHAN
ROSE COMPANIES, THANK YOU
AGAIN, THANK YOU THANK YOU GUYS
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