Travis County Commissioners Court
December 9, 2008
Housing Finance Corporation Number
Now let's call to order the Travis County housing finance corporation number 1 1. Consider and take appropriate action on request to approve minutes of board of director meetings of October 21, November 18 and November 25, 2008.
>> move approval.
>> second.
>> discussion? All in favor? That passes by unanimous vote. Number 2. Consider and take appropriate action on resolution to waive redemption lock-out provision to redeem multifamily housing revenue bonds (fort branch landing project) series 2000.
>> good afternoon, my name is mike gonzalez, chief financial analyst for the corporation. As y'all recall this is a follow-up to last Tuesday, we had this item on the agenda. Fort branch landing is a 250 unit apartment complex off the 800 techni center drive. They are requesting redemption lock-out provision to redeem -- they are refinancing so that the project can actually generate positive cash flow. Even if the bonds are paid early, the regulatory agreement will still be in force until 2015. Last Tuesday, the board directed staff to communicate an offer to the developers for them to pay their annual fee for 2008. And to also pay 25,000 in lieu of the approximately 100,000 that we would have collected over the time of the bonds. This offer was presented by staff. And they did agree to pay the 2008 annual fee and the 25,000; however, for the terms on the 25,000 they did request instead of doing a lump sum payment to do it over five years starting on December 2009, so 5,000 every year. Staff does recommend approval of that. However, we would ask that agreement be executed that ties that 25,000 to the regulatory agreement, so that if the 25,000 is not collected, we will not release them from the regulatory agreement at the end of 2015. Since that agreement has not been drafted yet by our attorney, the way to proceed would be to wait until the following, next Tuesday to have the attorney present it, or just authorize director Biscoe to actually sign the agreement once it's been drafted by our attorneys.
>> so do we think that they actually do not have the 25,000 and need five years to pay it or -- that's a long time to --
>> yeah. Their rationale was since we would be collecting the annual fees every year anyway, this would be kind of a similar arrangement that we had with them instead of doing a lump sum. I'm pretty sure of -- they are kind of restructuring to do positive cash flows, they are probably searching for any flexibility as possible.
>> the annual is what, mike?
>> I'm not sure. Again, it's -- it's between now and 2015 it would have been approximately 100,000 total. My guess is somewhere between 75 to 80,000 a year.
>> I thought it was -- I thought we were told last week it was 12-5.
>> more accurate number --
>> what amount is due for '80.
>> I'm not sure, I thought that was available.
>> $12,000.
>> that would be about right. 8 years times 12-5 would be 100 grand.
>> I guess if they don't have five, fine, but I don't think that's good logic because we're trying to sell it and get out of it. That's how I came up with the 25,000.
>> that was one concern for staff is the ongoing issue for us having to collect it every year.
>> if we go back pay us the 25,000 in two years. 12-5 each. Okay. If they say they can't afford it, I guess we can live with the other. But we're strung out five years. As it is the regulatory information will be coming in periodically, but that's the only thing, that will be our only dealings with them, right?
>> right. That's it much the only teeth for enforcement that I guess that we would have to collect if they choose not to actually pay the 25,000, still going to be outstanding, which is still fairly significant to have that in place. Which is why it's important that any agreement pretty much ties the 25,000 to the regulatory agreement that's still outstanding. So bring it back next week with mike going and asking them that.
>> that would be my recommendation, what you owe for 2008, in '09 pay half of 25, 10 pay half of 25, that way we're out of your hair.
>> so December 2009, 12,500 and then another 12,500.
>> if they can't afford to do it, I think we will be a lot more understanding.
>> either way draft the agreement and tie to it the regulatory agreement so we can have cliff draft that.
>> I would.
>> second.
>> why don't we try that and see.
>> seconded by Commissioner Davis, discussion? All in favor? That passes by unanimous vote. Goes.
>> move we adjourn.
>> second.
>> all in favor? That passes unanimously, also.
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Last Modified:
Tuesday, December 9, 2008 3:10 PM