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Every week, attorney Sean Bukowski reviews what is going in Austin, San Antonio, Dallas, and throughout Texas. Past topics have included: This is a really quick and easy way to stay on top of commercial real estate trends and topics. Subscribe to our YouTube channel today.

(AISD)Austin Texas Independent School District is considering affordable housing option for teachers

-AISD has proposed putting affordable housing for teachers on two of its properties.
-It has numerous proposals for each property.
Some of the proposals have been met with neighborhood resistance. AISD should ...ignore the resistance and build lots of units.
-Sometimes when I write this blog I feel like I am a broken record. I am consistently writing about Central Texas and affordable housing. But then -I remember that it really is the biggest (or at least one of the top 3 biggest) issue facing our great region. And then I do not feel so bad.

I was reading an article this morning that reminded me of when I lived in New York City. The year was 2005 and I was working for a big Texas law firm’s New York office. These were fun times. But I was living in midtown Manhattan on a big law firm associate salary. And I remember thinking that there was no way anyone who made less money than me could afford to live in Manhattan. I used to think, “Where do the school teachers live?”

Well, flash forward seventeen years and I reckon the folks at AISD are thinking the same thing. But they are trying to do something about it.

AISD has Plans to Build Affordable Housing
We all know Austin housing prices have been on a rapid ascent the last few years. This has made it difficult for anyone to afford to live here. AISD, therefore, apparently recognizes how difficult it is on its teachers. As a result, it has a plan to turn two of its properties into affordable housing for teachers.

Jeremy Stifler, AISD’S Director of Real Estate, told the Austin Monitor that having affordable housing can help AISD attract and retain quality teachers. AISD is not looking to just sell the land to the highest bidder but to be long-term partners and maintain ownership of the sites.

The first property is the Rosedale School up in northwest Austin. AISD has proposed four possible uses for this site:
10 lots with 20 single family homes constructed on those lots;
25 lots with 50 single family homes constructed on those lots;
44 2-story townhomes and an 80 unit 4-story multifamily building; or
30 2-story townhomes and a 140 unit 4-story multifamily building.
The second property is the Anita Ferrales Coy Facility in East Austin. AISD has proposed five possible uses for this site:

57 unit, 4-story multifamily building; 86 unit, 5-story building; and 100 unit, 4-story building;
57 unit, 4-story multifamily building; 86 unit, 5-story building; and 100 unit, 4-story building, and a 272 unit, 5-story building;
308 unit, 5-story building, and a 272 unit 5-story building;
32 single family homes, 63 2-story townhomes, a 78 unit 4-story building, and a 96 unit 5-story building; and
56 2-story townhomes, 308 unit 5-story building, and a 272 unit 5-story building.

AISD is currently presenting these proposals through public meetings.

AISD Should Ignore Neighborhood Objections
Apparently at the meeting last week about the Rosedale School proposals, there was heavy objection from some of the local neighbors. The people there argued that while single-family homes would match the character of the neighborhood, an apartment complex would not. Another concern was that apartments would increase traffic in the area.

I don’t really know what it means to “match the character” of a neighborhood. And I do not want to prescribe any negative intent or connotation to it. So I will just say that, when done right, apartments are very nice and can add to the character of any neighborhood.

But that’s sort of beside the point. The bottom line is we need more housing in Austin. That’s how we are going to make it more affordable. And if AISD wants to help attract and retain better teachers, it should build as many housing units as it can fit. So I applaud AISD for its plans and hopes it builds as many units as it can on the properties it owns.[+] Show More

(AISD)Austin Texas Independent School District is considering affordable housing option for teachers

-AISD has proposed putting affordable housing for teachers on two of its properties. -It has numerous proposals for each property. Some ...

Texas Title Insurance - Who pays and how much does it cost? Attorney Sean Bukowski has your answer.

- Texas title insurance rates are set by the Texas Department of Insurance. Necessary endorsements can add to the cost of that policy. ...

- Texas title insurance rates are set by the Texas Department of Insurance.
Necessary endorsements can add to the cost of that policy.
- A good closer is one who understands that ...he or she needs to figure out a way around the hurdles in place and get the deal closed.
- Its been a busy time here in Texas and, as a result, we have covered a lot of topical issues the last few weeks. And, as we lead up to the election in November, there is no doubt we will be covering a lot of local issues.

But for this week, we are going to wade back into some legal issues. Specifically, I want to talk a little about title insurance in Texas. While it is extremely important, unfortunately title insurance can be costly. But what is that cost? And how is it determined? That’s what I am writing about this week.

Texas Department of Insurance Sets Title Insurance Rates
One issue that we have in Texas – and that many commercial real estate investors notice when they are buying property – is that the cost of a title insurance policy is pretty high. I have written previously about how important title insurance policies are. Title insurance gives a property owner and lender peace of mind to know that, if there is an issue with your marketable title, the title insurance company is obligated to protect your rights.

But, as I wrote above, that peace of mind does not come cheap, unfortunately. Title insurance rates are set by the Texas Department of Insurance (“TDI”). It starts with the base rate. This is the basic cost of the initial title policy. And often endorsements are set up as a percentage of the base rate. The base rate determination is not a simple calculation.

So, for example, the base rate on a $4,826,600 policy would be calculated by first subtracting $1,000,000 to get to $3,826,600. Then that number is multiplied by 0.0043 to total $16,569.18. Finally, you add $5,575 to get to a total base rate equal to $22,144.

As you may know, in Texas the base rate for a policy is generally paid by the seller. That is just for the buyer’s title policy. Of course the buyer’s lender is going to want its own title insurance policy. But when the lender policy is issued at the same time as the buyer’s policy then the lender’s policy only costs $100 for a simultaneous issue.

Needed Endorsements are an Additional Cost
I’ve written previously in this blog that there are a number of endorsements that you will want to add to your title policy. These include but are not limited to:

Coverage for minerals, encroachments, and restrictions;
An access endorsement; and
A contiguity endorsement.
These endorsements will also increase the cost of a policy. Some of them are a flat fee and some can be set as a percentage of the base rate calculated above.

In addition to the increased costs that endorsements add, a few years ago, I wrote about a potential credit that is important to remember. If you are refinancing a property within the last seven years, you are entitled to a credit on the new loan policy. As a result, the base rate will be reduced by a percentage of the premium.

How to Find a Good Title Company
So as you can see, while necessary, title insurance can be expensive. And it is set by the TDI so there is no variance between issuers. When determining what title company to use, therefore, you want someone who understands how important it is to get a deal done. A good closer always understands that the parties want to close the deal and we all need to figure out how to get there. Nobody wants to have to walk away from a deal because the title company cannot close.

This is where I think Bukowski Law Firm shines as a title fee attorney. Because we are commercial real estate investors ourselves, we understand how important closing the deal is and work vigorously to figure out a way to make sure that happens.[+] Show More

SXSW Podcast interview and Jack Craver Interview How to make Austin Great

- I started a podcast to talk to Texas thought leaders about issues we face. Recently, I have recorded two new episodes that provide ...

- I started a podcast to talk to Texas thought leaders about issues we face.
Recently, I have recorded two new episodes that provide fantastic opportunities to discuss those issues and ...opportunities.
- I hope you will like the discussions we have as we all try to build a Greater Texas.
- No this is not an early Christmas article. I would not do that to you. The season I refer to above is podcast season. This week, therefore, I am writing a little more about my new podcast. More specifically, why I wanted to start it and will continue doing it.

I recorded a couple of new episodes recently that I am really excited about. And when preparing for those episodes, it really got me thinking about why I am doing this at all. These guests, though, perfectly highlight why I want to do it and why I think its important. So that is what I am writing about this week.

Thinking with Texas Thought Leaders
As I wrote above, I recorded two new podcast episodes recently. The first one was with Hugh Forrest – the Chief Programming Officer at South by Southwest. I probably do not need to explain why I am excited about having Hugh on as a guest. There are few, if any, events that are more synonymous with Texas in general and Austin specifically than SXSW. Its grown from a small music festival to one of the biggest arts and thought events in the world. As a result, therefore, it plays a huge role in the future of our state.

And that’s why I started this podcast and why Hugh was so high on my list of folks to speak with. I named the podcast Greater Texas because I want to talk to Texas leaders about the growth Texas has faced and continues to face, the benefits that brings, and the challenges we face. Who is better to talk about those issues than one of the leaders of the biggest annual event in Texas?

SXSW has seen tremendous growth. And it’s a festival that we all can enjoy and be proud of. But like the city and state its located in, the growth presents significant challenges. And Hugh was kind enough to share his thoughts on the issues they face as well as how he thinks they will tackle them. It was the type of important discussion I want to continue to have with Texas thought leaders.

Identifying the Problem is Only Half the Issue
The second podcast I recorded recently was with Jack Craver. If you are not familiar, four times per week Jack puts out his Austin Politics Newsletter. Its an email about Austin City Hall’s daily business. And if you have any interest in what is happening in Austin, you should absolutely subscribe. Few people are more tied in to City Hall than Jack.

And being plugged into City Hall is a huge part of talking about the issues that we face. Because its great to have the conversations I have had with Phyllis Snodgrass and Cross Moceri and Hugh Forrest. In those, we really identified a lot of areas that need improvement. But how do we get those issues solved? That’s where politics – especially local politics – is going to play a huge role.

That’s where Jack comes in. He understands the issues we face in Central Texas and is so knowledgeable about City Hall that we had a great discussion about how we can fix these issues.

Becoming a Greater Texas
Again, these are exactly the types of discussions I have had so far on the podcast and want to continue to do so in the future. I started this podcast because I want to talk to Texas thought leaders about issues facing Texas and how we can fix them. It excites me to know that we can have these discussions and hopefully find a better way forward. And in the end, help build a Greater Texas.[+] Show More

Expanding Austin's South by Southwest Experience with Hugh Forrest

I’m joined by Hugh Forrest, Chief Programming Officer at South by Southwest (SXSW), to talk about the relationship the festival has ...

I’m joined by Hugh Forrest, Chief Programming Officer at South by Southwest (SXSW), to talk about the relationship the festival has with its host city, Austin. Founded in 1987, South ...by Southwest welcomes music, film, and technology creatives from around the globe to downtown Austin every March. More recently, SXSW has announced an expansion project in Australia and has hinted at incorporating more of Texas in its yearly festival. I interviewed Hugh to learn more about what the future of SXSW looks like.

Timecoded Guide:
[00:00] Introducing Hugh, Chief Programming Officer at South by Southwest
[08:27] Putting on the 2021 South by Southwest during COVID
[14:39] Austin affordable housing & Texas’ starving artist problem
[21:31] Securing against violent situations during festival events
[25:46] Expanding SXSW with South by Sydney, Australia

Has growth been steady for South by Southwest during its over-30-year history?

Joining SXSW in 1989, Hugh has been with the festival almost since the beginning— he even provided the first computer ever used in the South by Southwest office. A lot has changed since the humble beginnings as a 3-day music festival, but Hugh has credited the addition of film and technology as massive sources of popularity growth for SXSW. Expanding now to 9 days, Hugh explains that the goal for the SXSW team is to continue to push the envelope of what’s new in creative spaces and stay ahead of the curve for upcoming event ideas.

“In 1994, SXSW added what was then called Film and Multimedia. Adding this film component to the event was very much one of [the founding] dreams. It made sense because you had this burgeoning, emerging film scene in Austin, with Linklater and Rodriguez and other folks.”

How has COVID affected the current version of SXSW?

One of the first event casualties of the COVID lockdown was the 2020 South by Southwest, which was unfortunately canceled due to safety concerns. Since that cancellation, Hugh explains that SXSW has looked different from 2018 and 2019’s meteoric successes. Crowds have been smaller, staffing has been limited, and the festival has incorporated more virtual options. Thankfully, Hugh was encouraged by 2022’s success and hopes 2023’s SXSW puts pandemic woes behind them.

“The dynamic of the event is you work on this for 9 months, it's a long slog and the payoff when the event happens is you think, ‘Wow, this was worth all the tough stuff.’ In 2020, when we didn't have that event, you actually had a negative payoff of having to lay off your friends.”

Has the higher cost of living in Austin impacted South by Southwest?

Anyone who listens to the show knows that affordability in Austin is a huge concern of mine, and Hugh matches my concern. Inflation and rising costs of living have been negatively impacting Austin’s community, especially in relation to lower income creative careers. SXSW has had to raise prices and festival attendees have expressed concern about Austin’s expensive hotel rates. Hugh hopes for stronger support for lower income communities and advocates for a better public transportation system to offset rising costs.

“15 years ago, South by Southwest was a fairly cheap event to attend. That has completely flipped on its head in recent years. We've raised our ticket prices, and it's harder for people to attend that way. Plus, if you're wanting to get a downtown hotel room, it's fairly pricey.”

What are the next steps SXSW is taking to expand beyond the city of Austin?

We throw around a lot of ideas for future SXSW expansions in this episode, including potentially reaching out to other communities and cities in Texas and throughout the US to host events. However, all hypotheticals aside, South by Southwest has already taken the “South by” brand on the road— all the way to Sydney, Australia. In 2023, South by Sydney will have its first festival, similar to Austin’s fest and brand new to Australia’s incredible independent audience of amazing creatives.

“We announced that we are doing an event in Sydney, Australia in October 2023. This is called South by Sydney. This is the first time we've ever licensed our name to another event. We've done events elsewhere, but they haven't been called ‘South by,’ so this is a big deal.”
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Keep up with Hugh Forrest on LinkedIn
https://www.linkedin.com/in/hughforrest/

Learn more about South by Southwest and buy tickets for 2023’s event at
https://www.sxsw.com/

Learn more about the Bukowski Law Firm at
https://bukowskilawfirm.com/attorney-sean-bukowski-greater-texas-podcast/

and the Greater Texas podcast at
https://www.youtube.com/channel/UCzxnEiMSLCwTmHCaQEngdbg[+] Show More

Austin Texas Landlord Tenant Eviction Restrictions May Be Returning. The City Council Votes...

- On September 1, the Austin City Council is scheduled to vote on whether to bring back a COVID era restriction on landlords. - If ...

- On September 1, the Austin City Council is scheduled to vote on whether to bring back a COVID era restriction on landlords.
- If passed, landlords will have to issue ...a 21-day Notice of Proposed Eviction before they can issue Notices to Vacate.
- This is a bad idea, and I encourage you to reach out to your City Council member and ask him or her to vote no on this.
- During the heart of the COVID pandemic, the Austin City Council enacted a lot of orders allegedly designed to protect Austin tenants. At least at the beginning, unemployment was very high and the City wanted to make sure people were able to stay in their homes during the crisis.

I wrote a lot about this in this blog as it was happening. And in the beginning, it was understandable. But the City kept extending these laws, even as unemployment dipped considerably, people were back at work, and COVID dissipated. But FINALLY the Council let them expire. And I thought that was the end of it.

But boy am I dumb. Apparently I underestimated our City Council. And now, on the agenda for the September 1 City Council meeting, they are potentially bringing back some COVID-era regulation. And it’s a really bad idea.

Is Austin Really Going to Bring Back the Notice of Proposed Eviction?
One of the laws the City Council enacted during COVID was to require landlords issue a Notice of Proposed Eviction when they need to evict someone for non-payment of rent. Under Texas law, if a tenant does not pay rent, the landlord can send the tenant a Notice to Vacate. That gives the tenant three days to vacate the unit before the landlord starts eviction proceedings.

Under the City of Austin’s Notice of Proposed Eviction scheme, landlords are first required to give the tenant 21 day notice before they can send a Notice to Vacate. Effectively, this increases the time period prior to the landlord starting the eviction process from 3 days to 24 days.

The City Council has now put a Notice of Proposed Eviction back on the September 1 meeting agenda. If approved, this will make the Notice of Proposed Eviction a permanent aspect of the Austin landlord/tenant relationship.

This is a Bad Idea for Multiple Reasons
The headline kind of says it all. But I want to explain why this is a bad idea.

First, it goes against state law. The state has already set up the rules that govern the relationship between a landlord and tenant. And Chapter 24 of the Texas Property Code sets forth the process for how a landlord can evict a tenant if the tenant does not pay. I am not sure why the City Council thinks its proper for them to change these rules. But I would hope the State Legislature clarifies its exclusive authority in this area at the next legislative session.

Second, its not clear to me what problem the City Council is trying to solve. If a tenant has not paid his or her rent, will giving the tenant 21 extra days make it more likely he or she comes current? Is there any data to back up this assumption? Because it seems like all the Council is doing is extending a bad situation for everyone.

Third, this shifts the burden of the tenant not paying from the tenant to the landlord for 21 additional days. I fail to see why that’s fair or why landlords should have to carry that burden. If the City wants to give tenants 21 extra days to live rent free, then perhaps it should pay the landlords directly for that burden. This would spread the cost of those 21 days among all taxpayers – instead of laying it at the feet of landlords.

Finally, ultimately this is all going to lead to increased rent. Under this scheme, the time for a landlord to have a non-paying tenant necessarily increases by 21 days. As a result, the cost of building (desperately needed) housing units and the cost of managing those units automatically increases. And, as we all know, those costs will eventually trickle down to tenants through higher rents and fees.

In a city that desperately needs more housing, the City Council should be doing EVERYTHING it can to encourage development. Instead, the Council is debating enacting a law that will increase the cost of development and management. I encourage everyone reading to reach out to your City Council member’s office before September 1 and tell them to vote no on this proposal.[+] Show More

Austin Texas, the affordable housing crisis continues. Will the $350mm bond help solve the issue?

Austin will have another housing bond on the ballot this November. It will likely be a $350 million bond to allow the city to build ...

Austin will have another housing bond on the ballot this November.
It will likely be a $350 million bond to allow the city to build more affordable housing units and repair ...existing ones.
Austin is in desperate need of more affordable housing and, therefore, without knowing more, this bond may make some sense.
I have been meaning to write about this topic for a couple of weeks now – ever since the news broke. But I got distracted by more urgent items. If you didn’t see, the first was to try to raise funds to help keep artistic outlets for young people around. And the second was to update on the new podcast.

But now we are back to local news. And in Austin, that can only mean one of a couple of topics. And this week its affordable housing. We have talked a lot about affordable housing in this blog. And for good reason. Central Texas has a huge affordable housing issue. And we need to do all that we can to help fix that.

The City Council apparently believes that includes another affordable housing bond. As a result, there will be another bond issuance on the ballot for the November election. But what is in it? And is it worth voting for? That’s what we talk about this week.

What is in the November Affordabe Housing Bond?

The bond issuance is likely to be for $350 million. This would be $100 million more than the last housing bond in 2018. I write “likely to be” because it needs final approval this month. Once it gets that, we will know the exact language that will be on the ballot in November.

The City will use the funds to acquire new land and build new homes. It will also use it to repair existing houses. Unfortunately, there is not much detail in it beyond that. The money will be the City’s to use as it sees fit within the housing world.

Is the Housing Bond a Good Idea?
As I wrote above, we have dedicated a lot of words in this blog to Austin housing. And for good reason. Its kind of a mess right now. Austin is already very unaffordable for many people. And there are a lot more people coming here over the next 20 years. As a result, we are in a desperate situation. We have to take steps now to try to fix the situation and prepare for the future.

All that means is that I am naturally inclined to support measures that may help fix the problem. And according to the City, the last three housing bonds have produced 6,754 new housing units. Which, if true, is great. Though, as you can see, I’m a little skeptical. I would like to see the detail of those units. That does not mean it didn’t happen, I would just like to see where those are and what they are (single family housing versus multi, etc). Tackling this problem requires increased density. And building some affordable single family homes helps some – but does not get to the heart of the problem.

So I am a little uneasy about just giving the City Council a blank check and hope it makes the right decisions on affordable housing. Frankly, if the Councilmembers wanted to really help the affordable housing issue, they should do what I’ve talked about in this blog repeatedly – remove restrictions, speed up the permitting process, reduce compatibility requirements, encourage density, etc. That would be a lot bigger help than the bonds the council is discussing.

But as I wrote above, we are in a housing crisis. And so I do not look at this as an either/or issue. Right now, I’m inclined to think that we should vote for this housing bond AND we need to loosen the restrictions and encourage more density. But it’s a long way to November. And I’m sure we will talk about this bond again before then. And as more details come out, or more of you educate me, I may change my mind.

http://www.bukwoskilaw.com/videos[+] Show More

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(AISD)Austin Texas Independent School District is considering affordable housing option for teachers

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