Creating Change: Tech Giant Amazon Ramps Up Investments in Affordable Housing

[00:00:03] Welcome to the MultifamilyBiz PowerHour Webcast Series, where insight meets innovation in the ever-changing rental housing market.

[00:00:14] Please welcome your host and industry experts, Kerry Kirby and Ernest Oriente.

[00:00:24] Alrighty, we are set in our ready to roll for our MultifamilyBiz PowerHour and educational opportunity for those of you in the property management space,

[00:00:32] that those of you also are vendors and suppliers who have products and services.

[00:00:36] And my, oh my, do we have an educational webcast for you? We have lots that we're going to be covering.

[00:00:43] We're going to be talking about the affordable housing side of our biz. Something we've been talking about,

[00:00:51] and we have some unbelievable guests with us here today.

[00:00:54] As you're getting settled in, we're always going to encourage you, find a quiet spot to be able to make and take notes.

[00:00:58] The more notes you make and take, it means that you'll little be able to take the insight from today and deploy it immediately and you'll create the action step.

[00:01:07] So it's not my accident that there's not something on your screen that would simply create what many tasking and multitasking that are best in adult education and learning says,

[00:01:16] make and take those notes and of course, Kerry and myself love the additional questions you have the insights you have you inspire.

[00:01:24] Kerry, my goodness. We have a lot to cover here today. How about some of us are opening words about you? What's moving around 365 connects?

[00:01:33] We'll be family biz. I'll say a brief introduction and then let's roll in because we have some what amazing guest joining us today. Yes.

[00:01:41] Absolutely. Well, first off, I want to thank everyone for joining us today. My name is Kerry Curley on the CEO at 3605 Connect.

[00:01:49] We're the leading provider of automated marketing, leasing and resident service platforms to the multi family housing industry.

[00:01:56] We're also the innovators behind multi family biz the largest media resource in the industry and the host of the award winning multi family biz power webcast series.

[00:02:06] We provide news resources and events to more than 1 million monthly friends and followers.

[00:02:15] And Terry Lord knows we have what friends and followers around the world, which does tells right into my introduction.

[00:02:22] My name is Ernest Story and team. My company is power hours 29 years ago that we had a dream of what working with teams and leaders around the world in the space of property management and multi family and those who are of you or vendors and suppliers always enjoy.

[00:02:36] And delight every step of the way 15 time zones globally across the LinkedIn platform carries you know we're there in the early early days.

[00:02:45] Today we have more than 180,000 leaders tucked into our LinkedIn groups.

[00:02:51] An annualized footprint is 10 million million and a significant part of what we do are these educational webcasts.

[00:02:59] And we're going to talk about the concept in part. So, carry on light of that. How let's the introductions of our delightful guest today. Let's talk a little bit about who's with us and then we'll go down the next path.

[00:03:11] Absolutely why I'm super excited Ernest to introduce Mayor Lynn Robinson, the mayor the city of Bellevue, Washington.

[00:03:18] Mayor Robinson's political career started in 2014 as a city council member.

[00:03:25] Four years later she was voted by our colleagues at deputy mayor and today she sits in the mayor seat where she has been since 2020.

[00:03:35] Mayor Robinson is a champion for small businesses start up and affordable housing.

[00:03:40] We also have Alice show Alice is the global director of Amazon's community impact division where she spearheads in a way of community base initiatives under Alice's leadership.

[00:03:55] These programs have taken flight and come to life including the multi billion dollar housing equity fund.

[00:04:04] Welcome Alice, Mayor Robinson. Thank you so much for being on our show where you are super excited to have you here today and to discuss affordable housing.

[00:04:16] Good morning. Good morning.

[00:04:20] Thank you so much to both of you and we had read this summer about some unbelievable work that you've been doing together.

[00:04:28] We think it's groundbreaking we're in awe. We're so admiring what you've done together and what you've accomplished and we really hope on two levels those who are listening to our education.

[00:04:39] We're going to get a clean more insight and we also hope it will inspire what other leaders and other cities and other businesses to lean in on this such.

[00:04:50] On this important topic related to affordable housing so carry how about some opening.

[00:04:56] So, so nobody was to set the stage and then we really have some important questions that we're going to be asking Mayor Robinson and Alice. So let's kick us off here.

[00:05:06] Yeah absolutely so you know affordable housing has always been a big topic across the country in political circles and certainly in the communities where it is built.

[00:05:17] But today the word affordable has been replaced with a new term called critical housing and it's critical because we have a shortage of over 7 million affordable rental housing units according to latest data out there.

[00:05:34] This shortage is impacting families, businesses, cities as well as just a broader economy.

[00:05:43] Alice, Amazon has put billions of dollars behind this and what was a catalyst for Amazon to start thinking and seeking to invest in affordable housing. What brought you guys there.

[00:06:00] Yeah well thanks again for inviting inviting us to participate. I agree with you that the $7 million or excuse me the 7 million housing unit shortage is a real crisis in the United States and something that's going to take all the creative thinking and best partnerships and collaborations to address.

[00:06:20] So for Amazon I would say would you know take you back into you know about 2017 when I joined the company and really at that point.

[00:06:30] The company knew it was going to last you know for a while it had started to grow a lot in our hometown and we started asking ourselves how could we make a difference and what would be the right way to get involved.

[00:06:45] And in the Puget Sound region in particular, the West Coast of the United States I think has experienced some more extreme housing affordability issues.

[00:06:56] It was certainly an important issue here in our region we had been funding local housing levies for years and doing other things and so Amazon stepped back and said you know how could we make a difference.

[00:07:09] And one of the things that we really looked at is where was government funding already applying itself to this problem, where was the public sector focused.

[00:07:20] And what you know the research shows is.

[00:07:24] Government funding at the federal state and local level was really concentrated on the ends of the housing continuum either very low income homeless below 30% of median income or with home ownership tax benefits for those of us that I'm in our home.

[00:07:41] And we really said there's a whole middle range of housing and those are nurses those are school teachers those are receptionists those are emergency personnel.

[00:07:54] There are a lot of really important people working in jobs in our communities and they're living and moving further and further away from their work.

[00:08:04] And so we decided that we thought we could make a difference in that space in particular.

[00:08:11] Of funding more affordable housing outside of the government kind of restriction ranges so I can speak more about housing equity fund in particular which we launched in 20 excuse me 2021.

[00:08:27] But that was really like the motivation was to join the public sector the private sector and move quickly and really address this crisis that was accelerating in our region.

[00:08:44] And this is on us I'm just so riveted by this when you initially connected with your local government officials and.

[00:08:54] And so in leaders over what they receptive immediately if that comes to all the doors are open you're here or was.

[00:09:01] Yeah, yeah, no I would I would say we were looking at you know research it was it spells it out pretty clearly and then we had been.

[00:09:09] Building our relationship with with local elected officials and you know we're a large employer around the United States but especially in our headquarters regions was pugestound and the early convergenia areas being our.

[00:09:25] And so I think you know when a company is now that Amazon is large we mean not remember when it was a small company and a start up in not sure that it was going to really have long term legs right so I think you go through a developmental phase of the company first you're just so focused on the business.

[00:09:41] And I think as you interact with the community you're mostly interacting as an employer to start right which is.

[00:09:47] You know housing jobs to very essential points for any community to be healthy.

[00:09:53] So I think our initial reaction or initial interactions were primarily around being an employer.

[00:09:59] But then when we started in this space we actually before the housing equity fund the first giant stuff we took into housing was we actually built a homeless shelter.

[00:10:09] Washington states large large is homeless shelter operated by Mary's place.

[00:10:15] It's actually we built it into one of our headquarters building so as we were expanding our footprint in Seattle.

[00:10:23] The homeless crisis in particular was especially urgent and so that was our first step and when we really started working with more closely with the nonprofit and public sector.

[00:10:34] And then after that we said we feel like we can do more and we should do more and we think we can do it.

[00:10:41] In a unique way that leverages our Amazon culture which is something I you know hope to talk more about but really we do things quickly with urgency you know we call it bias for action.

[00:10:54] And the housing affordability crisis demands that kind of attitude.

[00:11:02] And so we applied a lot of flexibility into how we would be helpful in our approach with developing the housing equity fund.

[00:11:10] Love that bias for action I want that bumper sticker right love that.

[00:11:16] Okay.

[00:11:18] So let's let's bring a may Robinson from from your perspective what is your take and what you're listening to Alice Sharon some of those initial conversations and connections what it was it like through through your lens.

[00:11:32] Yeah I so appreciate hearing Alice's side of the story because it does reflect our experience Amazon came to speak with.

[00:11:42] The council well before they invested into our city and asked you know what can we do to become a good community partner.

[00:11:52] To you and we talked about affordable housing we also talked about Amazon employees being part of the community and not just commuters in and out of our city.

[00:12:04] And of course that's going to entail a lot of workforce housing.

[00:12:09] But what benefits Amazon certainly benefits the broader community and I just I want to talk for just a minute about the impact that Amazon has had on the city of Bellevue.

[00:12:21] The whole Pacific Northwest region is about 10 years behind in their housing stock development and you couple that with rapidly increasing population it's really hard to keep up with the increasing population let alone make up for that lack of tenure housing development.

[00:12:42] And so oftentimes when you get a big company like a big employer like Amazon in you see people who have been in the community for a long time and naturally affordable housing get priced out.

[00:12:57] You see older developments get torn down and rebuilt into much higher priced development and you lose entire communities and because of the Amazon housing equity fund they have gone and not just created you know needed workforce housing they've actually done a lot of housing preservation.

[00:13:18] And they've come in and worked with us and other agencies to purchase older units and make them permanently affordable and at the same time they rehab them they bring them up to you know looking like new.

[00:13:35] And you keep an entire community of people and I can't tell you how valuable that has been to our city they've also.

[00:13:46] Created low interest housing loans at a time where interest rates are prohibitive for housing development so at a time when we're trying to get over this tenure lack of housing development and then to have another stall in housing which you're seeing nationwide they've been able to continue developing housing with this low interest.

[00:14:10] Loan which has been very transformative so and I will also say the housing they've created is in the heart of our downtown it's not pushed out into the edges of our community it integrates beautifully right into the heart of our downtown which is our nicest.

[00:14:31] Well, I want to say our nicest and biased because I live here but it's our largest neighborhood and our fastest growing neighborhood.

[00:14:39] Wow that's so at so mirrors power hours based in Park City at 30,000 people we have exactly the same thing going on to work force housing ski resource 1200 homes coming up 350 or affordable housing literally mayor Robinson what you're talking about.

[00:14:55] Is a snapshot of exactly what's happening in our backyard and the carrying in the compassion I push in the mouth but how do you embed them in and I love Alice when you were talking about the teachers and the nurses and fire and police this these this is who we're serving.

[00:15:09] But carry on I'm sure your mind is of us as you were listening to Mayor Robinson and Alice what what's sparking from your perspective based on the areas that they were covering.

[00:15:19] You know, it just seems like such an amazing collaboration and if somebody would have.

[00:15:25] And he.

[00:15:26] 10 years ago where you know what what's going to be a catalyst for affordable housing the last thing that would have popped in my mind would have been Amazon you know I mean.

[00:15:36] As you can Amazon customer by the way, I was so.

[00:15:39] But they think they're the house almost daily.

[00:15:43] So it's confident to know that you know some of that revenue certainly goes goes back in doing great things, but it's it's incredible.

[00:15:55] What what I'm hearing.

[00:15:59] Mayor Robinson with this impact is I mean it's it's unbelievable and you know we're going to get into this a little later because I have some questions.

[00:16:09] I'm going to be a little bit more interested in the questions around that, but again it's the you know that missing demographic where.

[00:16:16] Government funding drops off and it's a gap between.

[00:16:21] You know the lower income versus you know high in housing and it's it's sitting in the middle.

[00:16:30] And the other thing I'm hearing is is the focus on downtown and we have a lot of of urban course now that are just you know kind of.

[00:16:43] I call I want to call it shrinking, but I guess the population is shrinking because we have less and less office workers where a lot of you know high rises and downtowns and with with the shift to remote work we have some.

[00:16:57] You know a lot of it can office space that that people are trying to figure out what to do with so so it's encouraging that.

[00:17:06] This money is not only helping people that that are missing middle but also.

[00:17:15] Being able to keep that largest neighborhood is.

[00:17:22] May Robison foot at which is a downtown court active so hi and just incredible are going to say I'm in.

[00:17:29] Yeah, you know certainly in all what they're doing and I think you and I have to make a trip on this and check all this out in person.

[00:17:37] I have family there there's always a reason to.

[00:17:43] I'm in the city I got I've got family right there.

[00:17:48] We, hey it would just be easy reason to find our way to put our shoes on let's go easy easy.

[00:17:56] So so care about but yeah yeah please please.

[00:18:00] I would just go to say just like a comment to just add in and I may rob as in point and just make sure that so Amazon is the.

[00:18:07] Finance or of the housing so we do have this opportunity to work with all sorts of different partners and so the other thing.

[00:18:15] When you think about the actual housing either being preserved or newly constructed housing.

[00:18:21] We're working with private developers we're working with nonprofits we've worked with transit agencies and both.

[00:18:28] We're working with the budget town region and actually all three reasons regions Nashville Washington DC area.

[00:18:35] And so I think that's the other piece of this puzzle is that it's not just one small playbook you have to have.

[00:18:42] And open mindset who can come in who can add value and what are some of the missing pieces and so I think you know Amazon isn't owning the housing or operating the housing but really financing the housing.

[00:18:54] And so some of the secret sauce that we have is the flexible below you know below market not what you could get in the market that really has accelerated the preservation and been oftentimes the last piece of financing that comes into deals that may be stalled.

[00:19:13] And as you all know, a stalled real estate deal becomes a much more expensive real estate deal.

[00:19:19] So that's not good.

[00:19:20] Yeah, yeah. So I just want to say yeah that there's just a you know a great part of the story is the way that all the sectors have come together.

[00:19:30] To really say how can we move on this quickly and so just wanted to clarify that Amazon's not owning and operating it.

[00:19:38] Great thank you Alex for clarifying that amazing else may Robison to share related to this first point before before.

[00:19:47] So no, I think all bring it in later. Thank you.

[00:19:51] All right very good. So so carry my goodness right making affordable housing happen is certainly what a massive undertaking right so say more about this as we lead into next part of our webcast if you would.

[00:20:06] Yeah, so you know Ernest you and I have had this conversation before and some prior webcast and you know the word nimbunism right not my backyard you know we've all seen this happen.

[00:20:19] And and I think some of it is the misconception of what affordable housing really is and I think that fuels that nimbunism.

[00:20:29] You know movement we like us we could call it, but you know local government is the gatekeeper to zoning permits utilities and there's a lot of cities obviously healthy Washington is one of them where they do all they can make affordable housing in general happen.

[00:20:50] But there's also a large number of cities that that give in nimbunism and you know block projects from happening be it throughout motortoyums or you know stop utility access so they're there ways if government doesn't want that to happen that they can prevent it.

[00:21:13] So mayer Robinson Ernest and I of course big fans we commend you for seeing the value of affordable housing in your community but.

[00:21:22] But we're going to ask you to do one thing we want you to tell all those mayors out there especially the nimbunism on you know how workforce housing can benefit cities and and how it's benefiting your city so we're we're handing you to microphone and we want you to.

[00:21:41] To tell others how to what's the benefit of doing this.

[00:21:46] Does tend to be political and historically it was that way in delvue as well and I remember one council member saying if you can't afford to live in delvue then you don't belong here.

[00:21:59] So just how to.

[00:22:01] Oh, well, this is the office you're opening today you know we pride ourselves as being a welcoming community where and inclusive and.

[00:22:13] In our council vision statement we say we welcome the world diversities are strength and we really we really live by that.

[00:22:21] That value and you see it on the streets you see it in the small businesses.

[00:22:27] But I would say that when we realized who we were shutting out of our community that's when everything changed so when we realize that our own children who gone to college and came back couldn't afford to live here that the kids teachers that the police officers are firefighters are clergy.

[00:22:49] You know the many service workers could not be a part of our community then we realized.

[00:22:57] It was so important that we changed what we were doing to make sure that we were creating the housing that would keep people in our community and it's been it's still a challenge and we have not cracked that net at all most of those working I described commute.

[00:23:16] In to Bellebe and out and that's a lot of commuters it used to be that only 10% of the people who worked downtown lived in Bellebeau and so that was you know 90% of your workers commuting in and out every day.

[00:23:31] Lots you know not good for the environment so there's been a real effort to create that housing so people have the opportunities to live near where they work.

[00:23:42] I think also you see in Bellebeau and our downtown a very thriving downtown our small businesses do well our restaurants do well there's low crime there lots of eyes on the street.

[00:23:58] And there's just you know a tremendous amount of energy late into the night positive energy and so I think that that a lot of the benefits of having these kinds of policies that enable this type of housing to be developed.

[00:24:16] I got a lump in my throat when I was listening to you.

[00:24:20] They are Robinson talk about our kids right our kids not being able to afford clergy teacher fire police.

[00:24:27] This is just the fabric of our community and and again love your vision for this.

[00:24:33] And we do hope that this that your initiative and the working together with Amazon that this partnership together will inspire so many other cities right or knows it's needed from that perspective and Alice you're you're take on this question as we think about.

[00:24:50] You know workforce housing and how it benefits cities.

[00:24:55] Well I you know I just have to say having a mayor like mayor Robinson and having.

[00:25:01] You know government partners that go hand in hand is just is a big piece of the secret sauce of a region so it's not that we don't suffer from some nimbias I'm here in Seattle or slow permit approvals or other things like that in the Puget Sound region but on a relative scale it is we do have.

[00:25:20] And so we do have a lot of elected officials and community leaders that prioritize this issue which is really is really great you know I think part of it is also.

[00:25:31] In addition to saying how can we speed up these processes and how can we not block things.

[00:25:37] Another thing that becomes an important piece of this is also who's developing.

[00:25:41] The housing and how can we expand the pool of people that are housing developers and so one of the components that we talked into our housing equity fund was a commitment to help fund housing accelerator programs and.

[00:25:58] For example the urban institute just came out with a report and it broke down various regions in the city and here in Seattle what they said is that you know only one in five of.

[00:26:09] The developers in our region are leaders of color and only one in six are women and so that was another thing that we saw as an opportunity of.

[00:26:19] Who really has been living and working in these neighborhoods. What different perspective is brought how do you also help build equity not only of the housing developers but as the people that they will house and so that's I think another piece of this puzzle that.

[00:26:38] Is horizonal for our region and for our country is to also do more in that space about not limiting who has the skills to build and and acquire housing but and operate it well.

[00:26:54] Not limiting that and actually really thinking very expansively about that because I think that's going to also bring in more creativity.

[00:27:04] And how we look at even construction and how we look at property management, how we look at other things and so that's been also I think a piece of the puzzle that we need to focus on is broadening the tent.

[00:27:16] You know Alice as you mentioned one of five of color one of six right who are women carry that literally inspires us to imagine what another web past might look like a and the I wonder what it would look look like to support those.

[00:27:32] And let's cross the nation right Alice we've never heard those stats so are are are you're ringing and imagining the impact carry that we might make on that what we might do is an next step.

[00:27:46] So often Alice and Robinson were inspired literally the middle of this webcast for the next and the next and that's very very interesting we yeah that may be a very insightful follow up step in order to say and carry.

[00:28:02] And I know I just wanted to talk to Amazon we were like well it's a affordable housing conversation but yeah what they're doing is is just so much bigger right because right right as a funding source they're working with local developers they're setting aside and say hey you know we have.

[00:28:23] You know we need more women as developers we you know we need more people of colors developers and they're bringing those.

[00:28:35] The initiative's followed so there's a much bigger thing going on here and and when you talk about working with local developers as they are you know they know the mind.

[00:28:46] And they know those communities.

[00:28:50] They know the needs and in their creating a whole another tier of economic impact because you've got.

[00:28:59] Those companies that are getting business they they're projects is all they can get funding here comes Amazon.

[00:29:05] And so that's a very important thing.

[00:29:07] And it makes that happen brings that to life brings construction jobs into the city so the the impact.

[00:29:17] And I have a term and and Alice Amazon can use this is called the perpetual motion of a dollar.

[00:29:24] And as that dollar moves through all these other hands it creates a snowball effect and that's going on here and it's really really encouraging and you're right aren't a.

[00:29:39] And so that's a big thing that we need to get some of these statistics right and bring bring something else to life here.

[00:29:48] Right and think I think about is that filter yeah I'm sorry go ahead.

[00:29:52] I'm sorry going to say that's not exactly the urban Institute just released it I think last week and and like I said that can.

[00:29:59] I'm I'm inspired to think about the progress we can make with a bigger tent to I just the real estate industry has been you know has really lacked diversity and has kept the doors closed for many that have.

[00:30:18] You know the resource I mean have the passion the focus the desire to really be contributor so that's an important piece of the puzzle I think.

[00:30:28] Love that piece and just so the two of you know carry and I when we're not working we give in our communities.

[00:30:34] And never forget our roots my grandmother never spoke awarded English never ever forget that my mother was a real attorney 60 she was the only role model I ever knew because.

[00:30:44] And women at every potential in the I could see what she was doing Lord no that's great business arena so I had unbelievable mentors that it we're impacting my life that I didn't even know until later in life and then realize wait a minute no.

[00:30:58] Let me reset you know where where things are it's not what I saw my mother was a leader my grandmother did thrive but it wasn't true the reality was there were so many barriers like we're talking about here so ever so humbly we're listening to the.

[00:31:10] Do you deeply on many levels here thinking about the impact that carry myself can make as a follow up on a follow-up so fabulous thank you.

[00:31:19] Let's see yeah thank you.

[00:31:22] This is always one plus one equals five in our world.

[00:31:26] Mayor Robin sitting at that at Alice we always see all the other possibilities whenever we come together like this we had just a real strong belief in this.

[00:31:35] So look at these are anything else we'll.

[00:31:38] So we want to share related to this point about cities and the workforce housing benefits before we transition.

[00:31:48] I think I covered it.

[00:31:50] Yeah, we can move out all right very good alright.

[00:31:54] Goodness carry.

[00:31:57] But wow.

[00:31:59] We're where to next right let's go a little bit about the future of affordable housing let's go a lot going on here on a saw so I.

[00:32:10] I'm going to round the bend as you and I call it.

[00:32:12] I want to get Alice and the end of mayors thoughts on the future of affordable housing but I wanted to roll a few statistics on on the table with that question.

[00:32:23] You know research shows we have an aging population and an increase in single person households.

[00:32:31] Which are major contributing factors to the demand for affordable housing.

[00:32:37] The other point which we actually touched on a little bit earlier.

[00:32:42] Is we also have what's known as the missing middle and to define that a little deeper what that means is most affordable housing is finance using.

[00:32:54] Tax credits which which Alice actually touched on you know the government programs where do they leave all for they kind of leave off.

[00:33:01] At the top end to get tax credits is 60% of Arab medium housing income for rental housing so 60% and under is where that program works.

[00:33:15] But from there we're just leaping into market rate so there's a new focus out there's being placed on.

[00:33:24] The serving the 80 to 120% Arab medium income renters that is defined as the missing middle.

[00:33:35] Now there's you know some lenders out there which are you know like Freddie Mac, Fannie Mae they have some programs similar around that but a lot of developers at us spoken to about the missing middle they said look.

[00:33:50] Even with even with these you know lower interest loans is what these programs are offering we it's really tough to make the numbers work because we go in and we restrict rents and we do not have.

[00:34:04] The benefits on the other other side of that to make all the numbers work so some of the throw a couple of things on it on the table.

[00:34:12] Like two questions with their kind of one you know what does the future of affordable housing look like to serve our changing population.

[00:34:22] In how can cities like Bellevue and companies like Amazon help with these shifting housing needs so Alice may or August and I throw those on a table and y'all can.

[00:34:37] Yeah, slice and dice them and tell us tell us your thoughts on that.

[00:34:42] Alice you want to start no.

[00:34:44] Sure, sure I'll go start so I you know couldn't agree with you more about the need in the missing middle and so far in Amazon you know we have a total pledge of.

[00:34:55] 3.4 billion dollars and we're well over 2 billion into it and we've helped finance over 22,000 units and three regions in the US so.

[00:35:05] We've been making fast you know fast and good progress and of that portfolio 35% of those units are above 60% of medium.

[00:35:15] In come and part of what our thinking was was there were a couple of in addition to that income affordability gap at those.

[00:35:23] And you know slightly below market ranges the other thing is a lot of units are really small so you talked about seniors.

[00:35:31] Some of what we're seeing is that family can't find units big enough for families especially when you have oftentimes multi generational families living together others.

[00:35:40] So we prioritize fund financing both projects that included 3 and 4 bedroom units I just got to tour one and.

[00:35:48] Kirkland Washington the neighboring city to tell you a couple weeks ago and then the other thing is kind of a trade off is we said we'll come in with the you know this financing which is difficult to do but we also want these units to remain affordable for 99 years.

[00:36:04] And so that was the other piece I think of innovation we put on I think we've seen a 50 year as being kind of the largest.

[00:36:13] To the future range I think really thinking long term about.

[00:36:19] Keeping the stock that you create affordable because so much of what we're doing across the United States now is playing catch up and trying to preserve this naturally occurring affordable housing that you know maybe a little bit older a little less invested in the rents are more affordable.

[00:36:35] And then they get acquired and flipped so I think the future of you know affordable housing is that we need continued creativity.

[00:36:45] If I were to speak to other corporations in the same way that you asked mayor Robinson to speak to other mayors what I would say is you can do this to you don't need to be Amazon to do this.

[00:36:56] What we did is we looked at our financing but the big pieces that we brought were flexibility.

[00:37:04] And so what we do is we take every single deal and we individually underwrite it and we ask what's needed to get this deal done and then we negotiate this specific terms with an eye towards how quickly can we get this done and what's needed to get this done and what's the best you know the best value that we can produce.

[00:37:26] And so government has more difficulty being you know individually flexible I think government can be more flexible than they often are.

[00:37:34] But I would say for other corporations even if they decided we're going to fund one project you know a year and get a hundred more units.

[00:37:42] But if they went in with that mindset of do it quickly these flexible get the job done.

[00:37:49] I think we would see a lot more affordable housing and our region and we would unblock some of the proposals that are in the pipeline and just falling.

[00:38:01] I have a follow-up question to that a few minutes ago carry you were referencing about local governments of gatekeeper zoning and permits and utilities.

[00:38:12] And let's say any of that.

[00:38:14] Shift it in the work that you've been doing you know with mayor Robinson and her team and so forth.

[00:38:20] Well certainly with Bellevue we have a very collaborative relationship and I we've watched them use their full executive power.

[00:38:28] You know to get things that yeah.

[00:38:30] Yeah.

[00:38:31] But we work with cities across huge as sound from ever at Washington to so much Seattle and so you know there's there's a variety but I would say.

[00:38:42] The region is so kison at the mayor.

[00:38:44] Seattle is always I also very focused on housing affordability as I mentioned we have voters in this region that have been.

[00:38:52] And so we have a lot of people in the city that are moving voter you know voter approved housing levies.

[00:38:56] So I would prefer you know our region you know then others in the country from what I've been reading about sometimes and it's far from perfect but.

[00:39:04] And I would say especially more on the like permit timing and other things but this is.

[00:39:10] You know this region is very focused on this and saying we've got to do better we've got you more on our elected officials are very engaged on this topic.

[00:39:19] But I just love that I was just ever so curious because carry when you mentioned zoning and permitting utilities.

[00:39:25] I just wondered you know Alice or your filter you know what have you seen and what is possible there.

[00:39:30] And those are either you know the past forward right that other cities can embrace and go away to men and we could also we can also we can also look what's been done.

[00:39:38] Or the pitfalls hey you know we weren't able to do this or we tried to go through the back door but the front doors better or the windows.

[00:39:45] And the windows where you can go.

[00:39:47] So very intrigued by that part any other in psychos I love may or Robinson perspective as well.

[00:39:52] I'll just I'll just make one more point which is I think again speaking to other.

[00:39:57] You know small medium large businesses in the US is cities notice when they're employers care about something.

[00:40:05] And then it's it's put there their focus on something too so I would say you know that the a free option.

[00:40:13] You know that you could do right.

[00:40:16] I'd love to just you know making sure that you know when you signal that you're stretching yourself as a company.

[00:40:23] To bring something beyond jobs to the community and something as important as housing.

[00:40:29] Local elected officials I think they you know they feel like they're in it with others they're working together.

[00:40:34] And it can put a little you know fire and the belly of the right people to be more creative and use the full executive powers that they have.

[00:40:43] Awesome and there Robinson the year of filter your perspective on this.

[00:40:49] I wanted to take a step back for a sec and talk about a really good example Alice that Amazon did with the Polaris at Eastgate.

[00:41:00] Yeah, that's a that's a wonderful.

[00:41:05] Actually was Amazon involved with that I think it was.

[00:41:09] When you're finally at about that maybe Evan seems a better example.

[00:41:13] Evan T.M. is a housing preservation right in downtown Belleview and because we have a very highly rated public school system.

[00:41:24] We get a lot of people families coming here who can't really afford to live here, but are willing to do whatever it takes to get their kids in the school district.

[00:41:33] And those people make wonderful neighbors because you know we all value a good education for kids and a good future for our kids.

[00:41:43] They often end up doubling up in apartment and sharing a basement with another family just so they can be in this high price community.

[00:41:54] And, uh, Evan team which with Amazon helped us with was able to go and.

[00:42:02] How is a large number of our Belleview school district families and they did in.

[00:42:08] In groups so they could say what's the people they had been living with they could say friends and neighbors with them and that that's such important work and that's work for the future and that's something.

[00:42:21] That it could not have done without the partnership between Amazon and the organization called the high and low income housing institute and the city.

[00:42:31] So I just wanted to get another really good example.

[00:42:35] But talking to other cities you know the first step is you have to want it.

[00:42:41] You have to see the value of getting affordable housing and I think understanding exactly who you are housing.

[00:42:47] Would you do that and who you're not losing and your community what you do that is in terms of.

[00:42:53] And I think setting goals creating plans and partnerships and having regional collaboration.

[00:43:01] One thing that I am actually not a fan of which was using local control, but that has been very effective is that our state legislature has changed some of our zoning codes.

[00:43:12] And our neighbors and so we always talked about well we'll protect our neighbors but we'll put housing in other places.

[00:43:20] And they said no you got to put it in your neighborhood so.

[00:43:24] We currently rezoning all our neighbors are able to accept increased density whether it's a detached or an intact well in unit or if it's you know you tear down a home and put three smaller homes in place.

[00:43:39] We're looking at every opportunity.

[00:43:43] I do want to talk about some of the work that delves specifically has done we've had we created an affordable housing plan that we passed in 2017 and it has in senses and that we brought to the table.

[00:43:58] Everybody from our low income experts to our high and market experts and everyone in between including a member of the clergy.

[00:44:08] And we came up with this amazing plan that has taken us since 2017 to implement, but we are already seeing the effects of and since the implementation of that plan we have doubled our affordable housing stock in value.

[00:44:22] And our continuing to grow it. But I would say one part of it when you talked about the 80% to 100% the 80% AMI, how hard it is to get that we kind of multi family property tax exemption.

[00:44:38] That we tailor made for Bellevue based on input from the full spectrum of housing providers and it's too complicated for me to explain it.

[00:44:49] It has a lot of a lot going on with it, but it's so successful that I think every single developer that could use it has used it.

[00:45:00] And so we have gotten 80% AMI housing combined with market rate housing and every housing development, so the implemented that tax exemption and I would encourage other cities to look at what we did because it includes parking and it includes micro housing as well.

[00:45:18] We also made it easier to redevelop church property. So church properties that don't have a bigger congregation is they used to maybe have a huge parking lot that goes and use now it much easier for them to put housing affordable housing on that.

[00:45:36] We opted to take a point one percent property tax.

[00:45:42] Local property tax which brings in $10 million a year so what we call a housing facility fund.

[00:45:49] And we've done a lot of deeper affordability work with that. We've increased our staff at Bellevue City Hall so that we can permit faster and we have increased the speed of permitting for affordable housing.

[00:46:03] So it's time and money and I'm doing everything I can to incentivize somebody to put affordable housing in. So you're willing to do that. I'm willing to speed up your permit.

[00:46:15] But you look at creating an affordable housing plan putting it in your comfort head to plan creating incentives.

[00:46:23] Your land use code generating funding and having being nimble and responsive as Alice said, you know, you got to be ready for the next need that comes around the corner or communities are evolving.

[00:46:39] And I look at the work that we're doing today and how important child care facilities are and I know Amazon has recognized as well.

[00:47:02] This projected to really increase the economy significantly. So just having that nimbleness of being in touch with the community and those partnerships are still important and we are very grateful to have the community partners that we have an Amazon.

[00:47:24] Wow, time is money. May a rather than to which Alice says, a bias for action.

[00:47:34] I have full alignment. I have two rockets here going.

[00:47:37] I love that.

[00:47:41] But goodness, my pen was flying from micro housing church properties child care goodness. The importance of that the property tax and what how that's helping on that side.

[00:47:52] The zoning changes the speed in which I mean they're so much here and carriers were listening to Mayor Robinson and Alice regarding this.

[00:48:02] They're they're finishing each other sentences as they're sort of focused together in that they keyword of alignment is what feels so valuable you follow me on that, Karen.

[00:48:12] It's incredible. The only thing I was going to add when before Mayor Robinson got an all their doing was was a couple of ideas and as like, well, see, see did any idea I have as far as what I think it do comes to the task thing but they're already there.

[00:48:31] So they're doing a lot. I think if I can add anything to this, I think one of the common threads that I've been a herd throughout this is again it kind of comes back to what I said a little earlier about the misconception of affordable housing and who lives there and it's almost like it needs a PR campaign you know it needs like this is a face of affordable housing and somebody's like hi I teach your children.

[00:48:58] Hi, you know I'm the receptionist at your medical provider you know and just kind of go through our I'm the police officer that protects your community.

[00:49:10] You know that that's that's who we're really serving here it's not right there's such a misconception about it that that seems to be the threat with a lot of cities is kind of what Mayor Robinson said somebody said hey if you can't afford to live here you don't belong here and it's like.

[00:49:28] You know think before you strike because you know who who's teaching your children who's serving you coffee and you know when when you go into one of the coffee shops.

[00:49:41] Where did they live and people that you and I'm sure Amazon could speak to this quite well people that have to commute to go to work when they get an opportunity that's closer.

[00:49:52] They're going to go there so you have higher turnover rates which costs employers money so anytime you can people can live around where they work.

[00:50:02] I mean it's pretty much our nation was built I'm pretty sure was you know it grew from those employment hubs out so I think there's incredible things happen and.

[00:50:13] And Belle view Washington at Amazon and I would be honored to have Alice and Mayor Robinson take us on the tour of all this one day.

[00:50:24] Oh my gosh possibly.

[00:50:30] Yeah, I would just say that you know I started out by saying that affordable housing and historically political.

[00:50:37] I'm going to tell you something that isn't political and that's quality of life and I think that every local government can be focusing on quality of life for their community.

[00:50:49] And to me it's just enough housing if you even if you only put in high end housing having more housing is in the benefit everybody.

[00:50:58] So focusing on creating more housing focusing on creating a healthy community to me that means high public safety access to parks and green spaces and excellent public education.

[00:51:11] A clean environment access to health care those are basic things that make people quality of life high and make their cost is within lower.

[00:51:20] And then create education and job opportunities for people again this requires partnership with our employers and our schools but creating that pipeline knowing what the companies want from the people they hire and trying to provide that in our education.

[00:51:38] It helped people stay in the community move up in the community and you know and allows our local companies to hire for more than what's is great for the community.

[00:51:48] No those are things that I don't think are political that we can all be working on.

[00:51:56] Spot on Mayor Robinson and just as we're coming around to the back end of our webcast I just wanted to ask a question to each of you just very specifically and succinctly.

[00:52:09] And I was there other companies following you know and curious about the Amazon path and we're following and then the counterpoint.

[00:52:17] Mayor Robinson is our other cities, you know that are either asking for or modeling or in creep out what you're doing so Alice maybe from your perspective and then we'll pass it back to Mayor Robinson.

[00:52:28] Yeah, there are definitely other companies that have done had made housing contributions particularly in the Silicon Valley and then here in our region Microsoft is also been a.

[00:52:41] I'm a contributor to affordable housing. I would say that's a big differentiator and that I that we've done that I would like to encourage others to do is that flexible analysis on the project by project basis a lot of times they're giving their resources into a pool of fun that has.

[00:52:59] And you know more restrictive guidelines and then it becomes another piece of the puzzle that you're trying to wedge into a comp complicated financing piece so but you know a lot of other you know companies as I mentioned are in it they see the.

[00:53:13] And important so that and we're each taking swing that it in slightly different ways.

[00:53:18] Perfect all right very good thank you and Mayor Robinson from your perspective.

[00:53:23] Yeah, definitely other cities and the region are trying to do what they can.

[00:53:29] To create affordable housing role in the same boat here and we all have different resources.

[00:53:35] Melville is part of collaboration called a regional coalition for housing or arch and believe there's 10 cities or 16 cities involved in that but we all pay into it.

[00:53:48] I believe they'll be you contribute the most of all the cities because we have a larger, but not all the housing happens in Bellevue it happens regionally and it benefits everybody.

[00:53:58] So we try to work collaborative with our collaboratively with our cities the county housing affordable housing committee that I am part of.

[00:54:08] And that has all the cities and King County involved trying to work with each other just show what's been working our most my family property tax exemption has been a real model for other cities in the region and they're looking to adopt something similar as well.

[00:54:26] So yes, we definitely see many other cities.

[00:54:32] Trying to achieve the same goal and we learn from other cities and I hope they're learning from us as well.

[00:54:41] Any examples that you just you know that you might be aware of San Francisco Los Angeles just cares.

[00:54:48] Yeah, I can't say that items and involves in any collaborative effort with those cities.

[00:54:57] Okay, well we'll put it out there with a with a loud speaker.

[00:55:02] I'm happy.

[00:55:05] Oh boy.

[00:55:09] Good.

[00:55:10] Good.

[00:55:11] Well we'll put it out there and that is a beautiful way to come around the back at a my education website Lord knows.

[00:55:17] Wow so much to cover here we are ever so grateful to the two of you thank you for your vision your passion.

[00:55:23] Your your joy in working together your specific examples and we really are myself and carry we're just honored to be here together with you.

[00:55:31] We know it was a lot of getting our schedule think up and we got her done we made it.

[00:55:36] And thankfully you said what you two are doing I really am well this is so valuable and I hope that you have a lot of listeners and a lot of questions and comments that we can all learn from.

[00:55:49] We we promised to share yeah thank you so much and we promise to.

[00:55:54] Yes to share with you once this goes up and live and we would love you to share it as well.

[00:55:59] So if you say it's a wonderful collaboration between the two of you inspired us hence the reason for many months we were ever so passionate about wanting to bring all of us together and we did it carry some closing words is you wrap up please.

[00:56:16] Well just want to thank me rocks and Alice were taken their time very generous of you to talk about this it's a it's a big subject and you know who better to learn from then then the YouTube because y'all are just out front you're leading the pack and.

[00:56:36] I think we're deeply inspired by what respect of league both of you guys are doing from the city level to Amazon.

[00:56:46] You know not only investing in affordable housing but creating all these other opportunities at branch off of that.

[00:56:54] You know it's a brain local developers bring diversity into the development community it's it's a great thing you guys are doing and.

[00:57:05] I I commend you both for for your efforts thank you.

[00:57:08] Thanks we'll get yeah we appreciate the bull horn it we just more people in this in this game will be better for everybody so thank you it's great to meet you and now I'm following your podcast or your webcast or whatever we're going to call it.

[00:57:23] You know 17 years ago it was just you know two guys with a vision you know we do nothing called 11 our webcast.

[00:57:31] But those things existed we've all we had a vision and a passion for bringing the best in education to this sector and we just we absolutely enjoy the work together and thank you the two of you really inspire us and we look forward to being connected okay.

[00:57:45] Great have a great thank you.

[00:57:50] Thank you for listening to the multi family biz power our webcast series with your hosts industry experts carry herby at earnest or empty.

[00:58:02] Be sure to visit multi-familybiz.com the largest media platform for the multi-family housing industry delivering news events resources and more.