WEBVTT - Outlook for Banking, Affordable Housing Fund

0:00:00.120 --> 0:00:03.680
<v Speaker 1>You're listening to Bloomberg Business Week with Carol Masser and

0:00:03.800 --> 0:00:14.720
<v Speaker 1>Jason Kelly on Bloomberg Radio. So November, just a little

0:00:14.720 --> 0:00:16.920
<v Speaker 1>while ago, Dave Wilson was here and he was talking

0:00:17.440 --> 0:00:20.560
<v Speaker 1>specifically about financial shares needing some help in recovering. I

0:00:20.600 --> 0:00:23.520
<v Speaker 1>do remember I listened to Dave Wilson in comparison with

0:00:23.560 --> 0:00:25.680
<v Speaker 1>technology names. It was actually his chart of the day.

0:00:25.680 --> 0:00:27.400
<v Speaker 1>But I gotta say, I don't know that that's the

0:00:27.400 --> 0:00:29.880
<v Speaker 1>case of Connect One Bankcorp. Because the stack has done

0:00:30.040 --> 0:00:33.600
<v Speaker 1>very well and certainly been recognized by investors. In twenty nineteen,

0:00:33.600 --> 0:00:37.279
<v Speaker 1>Frank Sorrantino is back with US CEO at Connect One,

0:00:37.320 --> 0:00:40.080
<v Speaker 1>based in Englewood Cliffs, New Jersey, back in our Bluemberg

0:00:40.120 --> 0:00:43.159
<v Speaker 1>Interactive Broker studio here in New York. Nice to have

0:00:43.200 --> 0:00:45.159
<v Speaker 1>you here with us. Great to be here again. So

0:00:45.200 --> 0:00:48.440
<v Speaker 1>how would you describe the banking environment? It's an interesting

0:00:48.520 --> 0:00:52.199
<v Speaker 1>environment today, certainly interesting, good, interesting, Well, you know what

0:00:52.560 --> 0:00:54.840
<v Speaker 1>is that? It's a Chinese curse? Right, have lived an

0:00:54.840 --> 0:00:58.680
<v Speaker 1>interesting life? Um, certainly an interesting environment. You know. We

0:00:58.680 --> 0:01:01.360
<v Speaker 1>we find that the econom of me in general is

0:01:01.480 --> 0:01:04.240
<v Speaker 1>doing pretty well, and most of our business owners are

0:01:04.440 --> 0:01:07.959
<v Speaker 1>fairly upbeat. About what's going on. Yet, everything that you

0:01:08.000 --> 0:01:11.520
<v Speaker 1>see or reading the news, including you know today, depends

0:01:11.520 --> 0:01:13.679
<v Speaker 1>on what day you wake up and you know what

0:01:13.680 --> 0:01:17.160
<v Speaker 1>what what Twitter feed you are watching? So um, but

0:01:17.240 --> 0:01:19.399
<v Speaker 1>in general, I think the economy is pretty good. Banks

0:01:19.400 --> 0:01:21.880
<v Speaker 1>are pretty well positioned. They've never had so much capital

0:01:21.920 --> 0:01:24.880
<v Speaker 1>as they have today. Um, as you saw, you know,

0:01:24.920 --> 0:01:28.720
<v Speaker 1>earnings were pretty good for banks across the board past quarter.

0:01:28.760 --> 0:01:30.480
<v Speaker 1>Do you think it's right when they talk about loosening

0:01:30.520 --> 0:01:33.600
<v Speaker 1>some of the reserves or some of the requirements, you know,

0:01:33.720 --> 0:01:36.839
<v Speaker 1>rolling back some of the financial crisis and financial crisis

0:01:36.840 --> 0:01:40.360
<v Speaker 1>era adjustments on banks. I don't think there. I don't

0:01:40.400 --> 0:01:43.360
<v Speaker 1>really believe there was anything significant there that's contributed to

0:01:43.600 --> 0:01:46.760
<v Speaker 1>or added to where the financials are today. Uh. Some

0:01:46.840 --> 0:01:49.600
<v Speaker 1>of those things were mostly adjustments. There weren't any any

0:01:49.680 --> 0:01:54.640
<v Speaker 1>really big wholesale Uh. There are things of course that

0:01:54.760 --> 0:01:57.320
<v Speaker 1>I think, UM, we need to take another look at

0:01:57.360 --> 0:01:59.800
<v Speaker 1>some of the capital requirements. Some of the complexity that's

0:01:59.800 --> 0:02:03.440
<v Speaker 1>in that's in the regulation more so than the actual Um.

0:02:04.280 --> 0:02:06.880
<v Speaker 1>You know, what does the regulation say, it's the complexity

0:02:06.880 --> 0:02:09.840
<v Speaker 1>around it in the cost of compliance with that complexity,

0:02:09.880 --> 0:02:12.000
<v Speaker 1>I think is just a drag on the economy, and

0:02:12.040 --> 0:02:15.359
<v Speaker 1>it doesn't really benefit anyone. Tell us about what your

0:02:15.400 --> 0:02:18.840
<v Speaker 1>customers are telling you, because you know, I feel like

0:02:18.880 --> 0:02:22.360
<v Speaker 1>we have an okay picture of what businesses are saying,

0:02:22.360 --> 0:02:26.040
<v Speaker 1>whether they're borrowing, whether they're spending, whether they're expanding. If

0:02:26.080 --> 0:02:29.880
<v Speaker 1>you can generalize sort of how your customers are feeling,

0:02:29.880 --> 0:02:31.880
<v Speaker 1>what what would you say? So, look, I think um

0:02:32.000 --> 0:02:34.600
<v Speaker 1>clients in general, and it almost doesn't matter what industry

0:02:34.600 --> 0:02:38.240
<v Speaker 1>we're talking about. But the labor markets tight, okay, So

0:02:38.320 --> 0:02:40.720
<v Speaker 1>that's both a good thing and a bad thing. Interest

0:02:40.800 --> 0:02:45.240
<v Speaker 1>rates are low on historic by historic standards or any

0:02:45.280 --> 0:02:48.079
<v Speaker 1>other standard you want to look at, so people feel

0:02:48.360 --> 0:02:53.200
<v Speaker 1>confident about making certain types of decisions about the future

0:02:53.240 --> 0:02:56.359
<v Speaker 1>in that In that environment, people feel good that they

0:02:56.360 --> 0:03:00.440
<v Speaker 1>have jobs. Businesses feel good that their businesses are profitable. Uh,

0:03:00.480 --> 0:03:04.240
<v Speaker 1>people feel they can expand or you know, make capital

0:03:04.280 --> 0:03:06.760
<v Speaker 1>improvements to their business because interest rates are really low.

0:03:07.440 --> 0:03:11.000
<v Speaker 1>So in general, it's an upbeat. It's an upbeat sense

0:03:11.080 --> 0:03:13.239
<v Speaker 1>of where we are. So are you seeing more people

0:03:13.400 --> 0:03:16.360
<v Speaker 1>take out mortgages? Are you seeing you know, businesses that

0:03:16.440 --> 0:03:19.400
<v Speaker 1>you that are your clients either take out money for

0:03:19.480 --> 0:03:22.160
<v Speaker 1>capital expenditures or improvements. What what do you are you

0:03:22.160 --> 0:03:24.560
<v Speaker 1>seeing deposits grow. What are you seeing, Frank in terms

0:03:24.600 --> 0:03:26.959
<v Speaker 1>of your metrics? So, yes, yes, and yes, I would

0:03:27.000 --> 0:03:31.000
<v Speaker 1>say the biggest, the biggest holdback in the residential economy

0:03:31.080 --> 0:03:34.120
<v Speaker 1>right now is the lack of product in brand new housing.

0:03:34.160 --> 0:03:38.000
<v Speaker 1>It's just not there. Um. So that's that's so, that's

0:03:38.000 --> 0:03:41.040
<v Speaker 1>a good sign for that industry. Yes, businesses are borrowing,

0:03:41.120 --> 0:03:46.000
<v Speaker 1>businesses are expanding, Businesses are uh spending money on a

0:03:46.040 --> 0:03:51.000
<v Speaker 1>lot of technology, capital improvements, efficiency matters, and you know

0:03:51.040 --> 0:03:53.240
<v Speaker 1>this whole concept of well, we're going to wipe out

0:03:53.240 --> 0:03:58.520
<v Speaker 1>an entire um part of the economy because of you know,

0:03:58.600 --> 0:04:00.680
<v Speaker 1>efficiencies that are coming to the market place. I just

0:04:00.760 --> 0:04:02.240
<v Speaker 1>I don't see it. I see it going in the

0:04:02.240 --> 0:04:05.480
<v Speaker 1>other direction. There are more better quality jobs that are

0:04:05.480 --> 0:04:07.760
<v Speaker 1>going unfilled today than I think than there ever have

0:04:07.920 --> 0:04:11.160
<v Speaker 1>been before. So when it comes to your business, more

0:04:11.320 --> 0:04:15.040
<v Speaker 1>consolidation coming coming. And are you a buyer here? So

0:04:15.720 --> 0:04:20.039
<v Speaker 1>well yes and yes, um. So you know, the the

0:04:20.160 --> 0:04:23.080
<v Speaker 1>banking industry has been consolidating somewhere around four to five

0:04:23.160 --> 0:04:25.760
<v Speaker 1>per year for the last twenty years or so. There

0:04:25.760 --> 0:04:29.280
<v Speaker 1>were some twenty thousand banks years ago. There are five

0:04:29.320 --> 0:04:32.400
<v Speaker 1>thousand and a few others right now the rate of

0:04:32.440 --> 0:04:35.920
<v Speaker 1>consolidation is about the same. It's still consolidating at about

0:04:36.000 --> 0:04:38.400
<v Speaker 1>five percent, which would be a two fifty banks a

0:04:38.480 --> 0:04:42.640
<v Speaker 1>year UM. And yes, Connect one Bank closed on an

0:04:42.680 --> 0:04:46.559
<v Speaker 1>acquisition earlier in the year uh and we announced another

0:04:46.600 --> 0:04:50.080
<v Speaker 1>one here in August. So there are opportunities to build

0:04:50.120 --> 0:04:56.560
<v Speaker 1>scale to create a more efficient banking platform under connect one. Well,

0:04:56.560 --> 0:04:58.440
<v Speaker 1>what do you get out of consolidation and we just

0:04:58.480 --> 0:05:00.560
<v Speaker 1>got about forty seconds here. What do you get? Is

0:05:00.560 --> 0:05:02.719
<v Speaker 1>it just in case you're able to cut back on people,

0:05:03.000 --> 0:05:06.000
<v Speaker 1>but because you can kind of integrate operations. Look, I

0:05:06.040 --> 0:05:07.800
<v Speaker 1>think I think you really look need to look at

0:05:07.839 --> 0:05:11.800
<v Speaker 1>the bigger economy to understand what's happening right. Um, the

0:05:11.880 --> 0:05:16.440
<v Speaker 1>community bank model, where geography is so important, has has

0:05:16.440 --> 0:05:20.440
<v Speaker 1>slipped away a bit. So efficiency is important, scales important,

0:05:20.440 --> 0:05:23.960
<v Speaker 1>The ability to market across a much larger platform is important,

0:05:24.080 --> 0:05:27.240
<v Speaker 1>and you need size uh and revenue in order to

0:05:27.240 --> 0:05:28.720
<v Speaker 1>be able to do that. And the best and one

0:05:28.720 --> 0:05:30.200
<v Speaker 1>of the one of the best ways to do that

0:05:30.320 --> 0:05:33.160
<v Speaker 1>is to merge with your partner or or or acquire

0:05:33.200 --> 0:05:35.120
<v Speaker 1>or be acquired. All Right, I love talking to you.

0:05:35.160 --> 0:05:36.760
<v Speaker 1>I really do feel like we get a snapshot of

0:05:36.760 --> 0:05:38.320
<v Speaker 1>what's going on, because I feel like there's so many

0:05:38.360 --> 0:05:41.240
<v Speaker 1>questions out there. So thank you. All right, Frank Sarantino,

0:05:41.400 --> 0:05:44.919
<v Speaker 1>Chief Executive, I'll sort of connect one bank, publicly traded

0:05:45.120 --> 0:05:49.120
<v Speaker 1>based in Inglewood Cliffs, New Jersey, here with us and

0:05:49.960 --> 0:06:00.320
<v Speaker 1>wowspital famous daughter. Yeah, well I know that we'll see world.

0:06:01.600 --> 0:06:04.680
<v Speaker 1>I'm so delighted to have our next two guests in

0:06:04.680 --> 0:06:07.440
<v Speaker 1>our studio. We mentioned earlier we would talk about affordable housing.

0:06:07.440 --> 0:06:09.880
<v Speaker 1>Habitat for Humanity New York City works on that. It

0:06:09.920 --> 0:06:13.440
<v Speaker 1>also has an initiative to help support more homeowners financially.

0:06:13.480 --> 0:06:16.200
<v Speaker 1>And so let's get into it. Karen hay Cocks is

0:06:16.240 --> 0:06:18.720
<v Speaker 1>back with us full disclosure. She's a neighbor of mine

0:06:18.800 --> 0:06:21.520
<v Speaker 1>and we run into the dog park occasionally. She's CEO

0:06:21.520 --> 0:06:24.719
<v Speaker 1>of Habitat for Humanity New York City. Also with us

0:06:24.800 --> 0:06:27.680
<v Speaker 1>is Chris Ellam. He's executive director of Habitat for Humanity

0:06:28.040 --> 0:06:31.760
<v Speaker 1>New York City Fund. And so let's get into their news.

0:06:31.760 --> 0:06:33.440
<v Speaker 1>You said you'd be back when you had some news,

0:06:33.440 --> 0:06:36.920
<v Speaker 1>So what's going on. That's great? Well, I think what's

0:06:36.920 --> 0:06:38.680
<v Speaker 1>going on is most of the time when people think

0:06:38.720 --> 0:06:41.560
<v Speaker 1>about Habitat for Humanity, they think they know right, yeah,

0:06:41.720 --> 0:06:43.440
<v Speaker 1>we know what we do. We write, we get a

0:06:43.480 --> 0:06:46.440
<v Speaker 1>bunch of volunteers together and raise some walls. Visions of

0:06:46.560 --> 0:06:49.200
<v Speaker 1>Jimmy Carter like you know that fresh out of the

0:06:49.240 --> 0:06:52.880
<v Speaker 1>hospital where I was a couple of weeks ago. Fortunate,

0:06:53.080 --> 0:06:56.040
<v Speaker 1>very fortunate to say so um, And then fact, that

0:06:56.200 --> 0:06:58.159
<v Speaker 1>is who we are. But in New York City we're also,

0:06:58.320 --> 0:07:01.719
<v Speaker 1>as you might expect, this much more complex animal um.

0:07:01.800 --> 0:07:04.360
<v Speaker 1>And so one of our goals really is will never

0:07:04.360 --> 0:07:06.400
<v Speaker 1>be able to build our way out of an affordable

0:07:06.440 --> 0:07:09.440
<v Speaker 1>housing crisis in New York City. And so consequently our

0:07:09.480 --> 0:07:12.320
<v Speaker 1>model is morphed to try and preserve the existing affordable

0:07:12.760 --> 0:07:16.440
<v Speaker 1>housing that we do have, try and prevent displacement of

0:07:16.600 --> 0:07:19.840
<v Speaker 1>low income homeowners across New York City and keep them

0:07:19.880 --> 0:07:23.080
<v Speaker 1>where they are. So we have this complex preservation model,

0:07:23.160 --> 0:07:24.720
<v Speaker 1>and part of that is the c d f I

0:07:24.920 --> 0:07:27.160
<v Speaker 1>or the lending entity. So I want people to know

0:07:27.240 --> 0:07:29.080
<v Speaker 1>that we are who you think we are, but we're

0:07:29.120 --> 0:07:33.440
<v Speaker 1>also this other, much more complex, impactful um entity that

0:07:33.520 --> 0:07:35.600
<v Speaker 1>works in the city of New York. And so Chris

0:07:35.800 --> 0:07:38.160
<v Speaker 1>Ellum break it down for us, how does this work?

0:07:38.240 --> 0:07:41.720
<v Speaker 1>Because you know, our audience certainly appreciate sort of the

0:07:41.880 --> 0:07:46.360
<v Speaker 1>complexity of finance and how it plays through here, how

0:07:46.400 --> 0:07:48.880
<v Speaker 1>does it work well? At first, I think it's important

0:07:48.880 --> 0:07:53.440
<v Speaker 1>to recognize that um c d f I Fund was

0:07:53.480 --> 0:07:56.800
<v Speaker 1>created as Apartment of the Treasury, so this is something

0:07:56.840 --> 0:07:59.440
<v Speaker 1>that the federal government also funds through the c d

0:07:59.480 --> 0:08:01.240
<v Speaker 1>f I Fund, and the c d f I Fund

0:08:01.280 --> 0:08:05.320
<v Speaker 1>was designed to get capital to underserved communities throughout the country.

0:08:06.040 --> 0:08:08.080
<v Speaker 1>We are a small fund that focus is solely on

0:08:08.200 --> 0:08:11.720
<v Speaker 1>affordable housing, building new affordable housing that's long term, affordable,

0:08:11.800 --> 0:08:14.360
<v Speaker 1>and preserving what we have, particularly in New York City,

0:08:14.560 --> 0:08:18.080
<v Speaker 1>the HDFC community. So we take investments mostly from c

0:08:18.280 --> 0:08:22.440
<v Speaker 1>r A motivated investors, and then we deploy that strategically

0:08:22.840 --> 0:08:25.480
<v Speaker 1>in the HDFC community to help stabilize those buildings. This

0:08:25.520 --> 0:08:27.640
<v Speaker 1>is fascinating. Where's this money coming from? So talk about

0:08:27.680 --> 0:08:31.000
<v Speaker 1>the investors that are actually pulling up some money so

0:08:31.280 --> 0:08:34.160
<v Speaker 1>they can come and investors can come from multitude of places.

0:08:34.440 --> 0:08:37.320
<v Speaker 1>Um there are impact investors, there are foundations that do this,

0:08:37.640 --> 0:08:39.959
<v Speaker 1>family wealth offices. I'm just curious if it's coming from

0:08:39.960 --> 0:08:42.120
<v Speaker 1>all these different avenues. Because this is we spend a

0:08:42.120 --> 0:08:44.720
<v Speaker 1>lot of time talking about public markets versus private markets,

0:08:44.720 --> 0:08:47.400
<v Speaker 1>and private markets are getting into some very interesting areas

0:08:47.559 --> 0:08:49.679
<v Speaker 1>and it sounds like you guys are benefiting from it.

0:08:49.679 --> 0:08:51.920
<v Speaker 1>I think a lot of people talk about impact investing,

0:08:52.000 --> 0:08:53.920
<v Speaker 1>and I would bet you that almost everybody has a

0:08:54.000 --> 0:08:56.959
<v Speaker 1>slightly different version of what that means. But that's effectively,

0:08:57.200 --> 0:08:59.320
<v Speaker 1>that's what we're looking for. This is a marriage of

0:08:59.320 --> 0:09:03.000
<v Speaker 1>public and of it moneys towards specifically housing and affordable

0:09:03.040 --> 0:09:05.360
<v Speaker 1>housing in New York City. And so it's a much

0:09:05.400 --> 0:09:08.719
<v Speaker 1>more complex funding model, but we are seeing philanthropists or

0:09:08.760 --> 0:09:12.360
<v Speaker 1>people who have funded us traditionally through annual giving or

0:09:12.360 --> 0:09:15.360
<v Speaker 1>monthly giving look at more complex giving programs, and we're

0:09:15.360 --> 0:09:19.080
<v Speaker 1>certainly looking to develop that sector much more prolifically so

0:09:19.120 --> 0:09:22.480
<v Speaker 1>that we the people that who are philanthropically minded also

0:09:22.600 --> 0:09:26.240
<v Speaker 1>can potentially leverage their wealth towards this work. Right well,

0:09:26.240 --> 0:09:27.960
<v Speaker 1>and Karen, I think you used the word and if

0:09:28.000 --> 0:09:30.000
<v Speaker 1>you didn't, I will. I mean, there is a crisis

0:09:30.000 --> 0:09:33.920
<v Speaker 1>of affordable housing here in the New York City area.

0:09:34.280 --> 0:09:38.360
<v Speaker 1>And so Chris, help us understand maybe some specific projects

0:09:38.679 --> 0:09:41.760
<v Speaker 1>where you know, people might have might be familiar with,

0:09:41.920 --> 0:09:44.960
<v Speaker 1>or at least familiar with the areas that we're talking about. Sure,

0:09:45.040 --> 0:09:47.360
<v Speaker 1>so I think a great project we were involved in

0:09:47.440 --> 0:09:50.920
<v Speaker 1>along with Springbank at the City of New York as

0:09:50.960 --> 0:09:54.040
<v Speaker 1>well as an organization called You Have was a forty

0:09:54.080 --> 0:09:56.800
<v Speaker 1>some odd unit HDFC cooperative which is a limited empty

0:09:56.840 --> 0:09:59.600
<v Speaker 1>cooperative in the Hunts Points section of the Bronx. The

0:09:59.640 --> 0:10:02.440
<v Speaker 1>building had suffered some abandonment. But the other thing, you know,

0:10:02.440 --> 0:10:05.120
<v Speaker 1>we always talk about is for restrictive housing or affordable

0:10:05.120 --> 0:10:08.000
<v Speaker 1>housing us to be restriction and benefit. And in this scenario,

0:10:08.120 --> 0:10:11.800
<v Speaker 1>this building was paying market rate taxes because there is

0:10:11.840 --> 0:10:13.920
<v Speaker 1>there was a tax cap they were eligible for. But

0:10:14.040 --> 0:10:16.319
<v Speaker 1>being that the tax rate in the South Bronx and

0:10:16.400 --> 0:10:19.160
<v Speaker 1>that area was not nearly as high as sort of

0:10:19.200 --> 0:10:21.440
<v Speaker 1>the cap, so they weren't benefiting from that. They suffered

0:10:21.480 --> 0:10:24.840
<v Speaker 1>from some disinvestments and abandonment. And then through technical assistance

0:10:24.880 --> 0:10:26.520
<v Speaker 1>and the hard work of the people came before us

0:10:26.520 --> 0:10:28.640
<v Speaker 1>if you Have and the partnership we have a Spring Bank,

0:10:28.679 --> 0:10:31.240
<v Speaker 1>we were able to lend to take care of some

0:10:31.320 --> 0:10:34.480
<v Speaker 1>municipal arrears to stabilize the building and make them eligible

0:10:34.520 --> 0:10:38.559
<v Speaker 1>for city funding. So our loan total between Spring and

0:10:38.600 --> 0:10:41.360
<v Speaker 1>US is about five and fifteen thousand dollars to satisfy

0:10:41.440 --> 0:10:44.160
<v Speaker 1>municipal arrears that then ended up leveraging about four to

0:10:44.200 --> 0:10:46.640
<v Speaker 1>four and a half million dollars of public investment, saving

0:10:46.640 --> 0:10:49.920
<v Speaker 1>those units for for multiple generations to come. Talk to

0:10:49.960 --> 0:10:51.760
<v Speaker 1>us about scaling upcar and how much of this can

0:10:51.800 --> 0:10:54.880
<v Speaker 1>you guys do we are? You know, that's part of

0:10:54.920 --> 0:10:57.400
<v Speaker 1>the deal. I think you know to who much has given,

0:10:57.480 --> 0:10:59.880
<v Speaker 1>much is expected, And I think we are leveraging our

0:11:00.080 --> 0:11:01.800
<v Speaker 1>rand and our balance sheet to do this kind of

0:11:01.840 --> 0:11:04.080
<v Speaker 1>work in a way that the Habitat is not able

0:11:04.520 --> 0:11:06.960
<v Speaker 1>or staffed up to do around the nation. So we

0:11:07.040 --> 0:11:09.280
<v Speaker 1>are what I like to affectionally refer to as an

0:11:09.280 --> 0:11:12.160
<v Speaker 1>and organization. So Chris has another job in addition to

0:11:12.160 --> 0:11:14.360
<v Speaker 1>being the executive director of the fund. He works most

0:11:14.400 --> 0:11:19.120
<v Speaker 1>closely with our homeowner applicants and getting them ready for homeownership.

0:11:19.200 --> 0:11:22.319
<v Speaker 1>So there's a lot of uh dual hat wearing going

0:11:22.360 --> 0:11:25.480
<v Speaker 1>on at um At Habitat New York City. And we

0:11:25.559 --> 0:11:28.400
<v Speaker 1>like to be efficient and effective with the resources that

0:11:28.440 --> 0:11:31.960
<v Speaker 1>we have on hand. That said, the art in the

0:11:32.040 --> 0:11:34.400
<v Speaker 1>art and science of this work is trying to predict

0:11:34.880 --> 0:11:37.040
<v Speaker 1>the time at which we need to staff up and

0:11:37.040 --> 0:11:39.520
<v Speaker 1>and be ready to service more and more. But this

0:11:39.640 --> 0:11:43.440
<v Speaker 1>allows us effectively to touch thousands more families than we

0:11:43.480 --> 0:11:46.120
<v Speaker 1>would ever be able to do in our traditional model.

0:11:46.360 --> 0:11:48.880
<v Speaker 1>And so Karen, as you talk to your colleagues around

0:11:48.920 --> 0:11:52.640
<v Speaker 1>the country in the broader organization, I mean, what what's

0:11:52.679 --> 0:11:56.520
<v Speaker 1>the mood right now, because you know, housing is arguably

0:11:56.559 --> 0:11:59.000
<v Speaker 1>one of the most personal things, and that's at the core.

0:11:59.360 --> 0:12:01.760
<v Speaker 1>I lived in Orgia for a long time, very familiar

0:12:02.080 --> 0:12:06.360
<v Speaker 1>um with the organization, Like, how are people feeling about

0:12:06.480 --> 0:12:10.280
<v Speaker 1>that opportunity to to own a home, to live in

0:12:10.320 --> 0:12:13.720
<v Speaker 1>a place that's that's both appropriate and affordable. I think,

0:12:13.880 --> 0:12:16.160
<v Speaker 1>you know, at first, I thought you're going to ask

0:12:16.160 --> 0:12:18.280
<v Speaker 1>the question relative to my colleagues, and I think when

0:12:18.320 --> 0:12:20.480
<v Speaker 1>I think about my colleagues in the housing sector around

0:12:20.480 --> 0:12:25.280
<v Speaker 1>the nation had attat for humanity specifically. Certainly we're feeling tentative,

0:12:25.440 --> 0:12:28.199
<v Speaker 1>but we're also really looking to be as creative and

0:12:28.240 --> 0:12:30.560
<v Speaker 1>as negle as we can and looking at new models

0:12:30.800 --> 0:12:34.640
<v Speaker 1>that habitat historically never would have addressed. Um we're looking

0:12:34.640 --> 0:12:38.240
<v Speaker 1>at rental options and rental own options and different strategies

0:12:38.240 --> 0:12:40.960
<v Speaker 1>really to engage and serve families because we believe in

0:12:40.960 --> 0:12:44.280
<v Speaker 1>that role always and forever, the role that housing plays

0:12:44.320 --> 0:12:47.920
<v Speaker 1>in the overall health and long term wellbelling being of

0:12:47.920 --> 0:12:50.360
<v Speaker 1>the families that work with us. But I think how

0:12:50.360 --> 0:12:54.320
<v Speaker 1>our homeowners feeling. I mean, I think our sector. You know,

0:12:54.400 --> 0:12:57.480
<v Speaker 1>they are quite honestly doing everything that they could. They're

0:12:57.480 --> 0:13:00.760
<v Speaker 1>doing everything right, but they're just slightly above being able

0:13:00.760 --> 0:13:04.760
<v Speaker 1>to receive any real subsidy, and they're slightly below being

0:13:04.800 --> 0:13:08.679
<v Speaker 1>able to receive a market based deta. There's I think

0:13:08.720 --> 0:13:11.960
<v Speaker 1>they're tenacious regardless of the market. I also think they

0:13:11.960 --> 0:13:15.800
<v Speaker 1>are an incredible credit risk given that they We have

0:13:15.920 --> 0:13:19.720
<v Speaker 1>a very low default rate nationwide and we ride through

0:13:19.840 --> 0:13:22.439
<v Speaker 1>many of the market twists and turns, and I believe

0:13:22.480 --> 0:13:25.320
<v Speaker 1>that's because of the resiliency of the community that we

0:13:25.400 --> 0:13:27.199
<v Speaker 1>serve around home Long. I have to tell you, I

0:13:27.360 --> 0:13:31.120
<v Speaker 1>I moderated panel at Milkon Institute included the CEO Brookfield

0:13:31.120 --> 0:13:35.000
<v Speaker 1>as It Management Um, Tom Barrack of Colony Capital, the

0:13:35.000 --> 0:13:38.040
<v Speaker 1>CEO of Discovery Land Company, all these big real estate leaders,

0:13:38.360 --> 0:13:42.320
<v Speaker 1>and our conversation ultimately turned very quickly to affordable housing

0:13:42.440 --> 0:13:45.079
<v Speaker 1>like it is on everyone's radar. So it's great to

0:13:45.080 --> 0:13:46.760
<v Speaker 1>see the work that you guys are doing. All right,

0:13:46.960 --> 0:13:49.960
<v Speaker 1>we really appreciate you coming by. Karen Haycocks is CEO

0:13:50.080 --> 0:13:52.400
<v Speaker 1>of Habitat for Humanity New York City and Chris Sillam

0:13:52.640 --> 0:13:56.480
<v Speaker 1>is executive director of the Habitat NYC Fund. That's going

0:13:56.520 --> 0:13:58.680
<v Speaker 1>to do it for us on a Halloween. My daughter

0:13:58.720 --> 0:14:00.679
<v Speaker 1>has worked for a habitat for him now with their

0:14:00.800 --> 0:14:03.400
<v Speaker 1>with their colleagues, with their with their friends and and me,

0:14:03.600 --> 0:14:06.720
<v Speaker 1>and we're gonna go back and do more. It's great stuff. Um,

0:14:06.920 --> 0:14:10.800
<v Speaker 1>busy day, jobs tomorrow, jobs tomorrow, everybody looking forward to

0:14:10.800 --> 0:14:13.000
<v Speaker 1>that's going to give us a key look for Carol Masser.

0:14:13.240 --> 0:14:17.720
<v Speaker 1>I'm Jason Kelly, and this is Bloomberg Radio. Bloomberg Business

0:14:17.760 --> 0:14:19.200
<v Speaker 1>Week brought to you by n B A f c

0:14:19.360 --> 0:14:22.480
<v Speaker 1>P A S and Advisors, dedicated to solving complex tax

0:14:22.480 --> 0:14:26.600
<v Speaker 1>and accounting challenges, identifying opportunities, and helping businesses maximize profits.

0:14:26.840 --> 0:14:32.080
<v Speaker 1>Learn more at n B A f CPA dot com.

0:14:32.560 --> 0:14:33.560
<v Speaker 1>Yeah