Travis County Commssioners Court
September 24, 2002
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
Housing Finance Corp
>> good afternoon. Let's call to order the Travis County housing finance corporation. Loath take the item in reverse order since we have a visitor who has more important items than the commissioners court.>> actually, I didn't mean that. [ laughter ] 4. Approve resolution authorizing the issuance, sale and delivery of multifamily housing revenue bonds (town vista apartments project) series 2002; approving the form and substance of and authorizing the execution and delivery of documents and instruments necessary to carry out the financing of such multifamily rental residential development; and containing other provisions relating to the subject, and take appropriate action.
>> good afternoon, cliff blunt, thompson co issuer's council, we have david sandlin here to talk a little bit about the project. I understand lad will be here shortly. [inaudible] running a little bit late. [inaudible]
>> good afternoon, may name is david [inaudible] representing the -- the town vista [inaudible] [inaudible - no mic] wanted to give you a brief update on the where we are standing. The permits from the city of Austin are due to be pulled either the latter part of this week or the first of next week. Bonds are scheduled to close on the 3rd and 4th of October. And construction to start immediately thereafter. Just as a -- as a reminder about the -- about the development itself, going to be a total of 280 units. All of which will be restricted to families whose income is 50% or less than the median income, which is approximately $35,000 this year. There are 68 one bedrooms, 60 two bedrooms that are 900 feet. 96 two bedrooms that are 950 square feet, 56 three bedrooms which are 1,056 square feet. The project is located on montopolis drive south of riverside. On the east side.
>> the restrictions are 100% of the units -- [inaudible - no mic] 60% of the --
>> [inaudible]
>> so which is much more restrictive than the traditional structures that we have done in the past. Because this project is being combined with tax credits and -- so that's the reason for that. This is -- the bond is going to be probably placed with the subsidiary of newman financial which is a very sophisticated underwriting firm that specializes in housing transactions, so they are very sophisticated. They have yupd written is very closely. -- underwritten is very closely, feel good about that part of it, also, if lad were here I believe that he would tell the same thing.
>> the represent is capped at what.
>> 50% of the area median income, they can earn up to 60% of median income, but the represent is based on 50% median income level.
>> but the rent cap is 30% of 50% of area. It's not capped at whatever 50% is. It's 30% of that number is what the represent cap is. The 50% is the income level. 50% of the area median income.
>> that cap is set by the federal government.
>> it's related to the tax credit --
>> all right.
>> that's kind of tied into that standard you shouldn't have more than about a third of your income going toward either a mortgage or your rent.
>> there's also a utility allowance figured in, included in that 30% cap, also.
>> yeah. I have some questions. What type of amenities that you will have there to -- to accommodate the -- the families that will be occupying this after completion, what type of programs do you -- do you envision or have in place and how do you imagine that you will oversee these things.
>> commissioner Davis thank you or board member Davis, the owners of the property have contracted with the ymca of Austin --
>> ymca?
>> to provide after school programs and other such programs that they may deem necessary. The owners of the property are building onsite a learning city to accommodate these programs. [papers shuffling - audio interference] that in addition to swimming pools, playgrounds, great rooms, business center, work room, et cetera.
>> have you shown it to the ymca involving the -- the unit at the [inaudible]
>> yes, sir.
>> over in precinct 1.
>> > yes, sir.
>> so we are building these projects.
>> these are 280 new units.
>> yeah.
>> 280 new units. Is that total or is there --
>> no, i'm sorry, this is a totally new construction transaction. 280 units.
>> you said closing was 3rd and 4th or 2nd and 3rd.
>> closing scheduled for 2nd and 3rd here in Austin. It can slip to the 4th, that's the deadline under the bond review board 120 day rule.
>> okay.
>> that was my mistake. Got my dates mixed up.
>> no problem. All of these documents mentioned in the item will be presented when appropriate?
>> yes, sir.
>> in fact you may have them there now?
>> yes, sir.
>> david, did you guys need to go through any kind of a zoning change with the city of Austin, is that all taken care of?
>> that's done. This was rezoned actually I believe through one of the neighborhood plans, montopolis neighborhood plan, it was rezoned --
>> over a year ago.
>> last year.
>> this was a project that was approved a year ago, the developer couldn't get the closing, so -- so it was put back into the lottery.
>> okay. I know that the document makes mention that campbell hoak is the developer of the fort branch west, but we also like to say they are the developer of the heather wilde seniors project in Pflugerville which everybody is exceptionally proud of.
>> uh-huh.
>> anybody else here on this item?
>> I move approval of the resolution, judge.
>> second.
>> seconded by commissioner Davis. Commissioner director Davis. Any more discussion?
>> that includes that whole thing in its entirety.
>> right.
>> cliff, working on your legalese these days, huh? [ laughter ]
>> yes, sir. All in favor? That passes by unanimous vote.
>> thank you.
>> thank you,.
>> thank you, david, for a job well done.
>> thank you, board members.
>> good luck to you.
>> also thank you for moving the schedule around.
>> well, we know how important you are, how busy you are these days, david. [ laughter ]
>> okay. Let's go back to number 1. 1. Approve budget for the corporation for fy 2003, and take appropriate action.
>> i'm harvey Davis, manager for the corporation. I'm happy to present the budget for the housing finance corporation for the fy '03 year. This budget is very similar to the figures, the estimates that I had given to the board a couple of weeks ago that was the basis for making the -- making the commitment of the transfer that the corporation will be making to Travis County. Like that, most figures I gave you a couple of weeks ago, the budget assumes that there will be no -- no bond closings, so it's taking the -- the most conservative line as far as revenue goes. For example, if this -- if this town vista closes in October, that would be revenue that was not put in this budget. The -- I did the -- I did the ending fund balance for fy '03 was put into an allocated reserve account. The reason for that would be so that funds would be available for expenditures if bonds are issued, then we have certain expenditures that we have that -- that are not reflected in the budget.
>> and the budget you propose is contained in exhibit a.
>> yes, sir.
>> and b.
>> that's right. Questions? Move approval.
>> second.
>> any more discussion? All in favor? That passes by unanimous vote. 2. Approve contract with greater Austin first tee, and take appropriate action.
>> this, the contract was prepared by cliff blunt. This, if you will recall, in April of 2001, there was a $150,000 commitment made to first tee to construct a golf course, a nine-hole golf course and some soccer and baseball fields on land owned by the ymca. This is located at highway 183 and 51st street. They have -- they have begun construction of the project. Its over a $4 million construction project. I went out to -- to look at how they were progressing last Thursday, and they are certainly building a way -- it's on a beautiful site of land. I think it will be a lovely golf course. I believe this contract reflects the desire of the board. It's very similar to the meals on wheels contract in that they will present invoices to the corporation for reimbursement. Up to $150,000. If the board approves the contract, I believe that, you know, they are going to presents us invoices in October, because they have already incurred that amount of money in the construction process.
>> the one thing that I was not clear on is it mentions in 3.2 on page 2 about quarterly reports. The actual contract period ends 2003 or when facilities are substantially completed. Are they required to keep giving us quarterly reports after they have completed the facilities? That's the only part that I was unclear on. Or is it they are only supposed to give us quarterly reports during the construction period?
>> the way it reads to me was that they would just give the quarterly reports during the contract period. So we would -- if everything works the way it should, they would give us three quarterly reports. They -- they told me that -- that the construction of the facilities will -- will be completed in November or December of this year. And that -- and that although they will not open the facilities until may, because the grass -- they have to go through a growing season, so it seemed to me that, I mean, it's -- it's really there and in place by the end of -- of next September.
>> I was just trying to get a clarification on that.
>> the report is really a construction report as opposed to more of an activity report of -- takes where I was getting confused. Okay, thanks.
>> we don't ask for an annual report, though, to see how they are doing after completion of construction. You see what i'm saying? In addition to golf there's supposed to be a lot of other stuff, life skills.
>> I think an annual is a good idea.
>> yes, let's just suggest that to them or maybe write it in, handwriting will be fine, can we do that? [ laughter ]
>> turn it into something else.
>> yeah.
>> okay.
>> I would like to move approval of that, judge.
>> second.
>> seconded by commissioner Gomez, any more comments or questions.
>> congratulations to them.
>> they have done a great job. Right along with that golf coirs, a lot of other things back there.
>> a good job of raising funds.
>> sure did.
>> they told me that, you know, they are having this pro golf tournament in the -- and the proceeds of the golf tournament that is coming to Austin will be dedicated to this project.
>> the seniors tour I think.
>> yeah.
>> in may of next year.
>> did we get an item in here about -- about giving credit to Travis County?
>> I believe that's in the contract.
>> I don't --
>> it's in -- pretty much --
>> Travis County and greater Austin.
>> i'm sorry?
>> unless you are including Travis County and greater Austin. [multiple voices]
>> thank you.
>> thanks.
>> [inaudible]
>> great, thank you. [ laughter ]
>> is that okay? Yeah. Oh, I was just making sure it was in there.
>> [ laughter ] anything further? All in favor? That passes by unanimous vote.
>> thank you. 3. Consider legislative agenda of Texas association of local housing finance agencies, and take appropriate action. I'm very happy to have invited gene talirico who is the executive director of the Texas association of local housing finance agencies. This is the organization that represents housing finance corporations to the -- to -- to issues -- on issues that benefit, are important to housing finance corporations in the affordable housing arena. I -- she has been the executive director, I think, for about two and a half years, before that was 10 years with the Texas bond review board. So she understands the tax exempt bond allocation issues that are very important to the corporation. And -- and I thought it might be important for -- for or be useful for the board to hear a -- to hear a short presentation by her about -- about important issues that are coming up in the legislature in the affordable housing area. With that, if it's okay with you, judge, I will turn it over to jean.
>> okay, welcome.
>> welcome.
>> thank you. As mr. Davis said, i'm jean talirico, you are a member of our association, and we appreciate that. Harvey had asked me to cover about two hours worth of information in 10 minutes or less. And so if I get going too fast, flag me down and I will stop. The -- I believe that all of you received a copy of our proposed legislative agenda. This is not final yet. Our members will vote on this at our annual meeting in October. During our annual conference. The -- obviously we adopts have time -- we don't have time to go through the whole agenda. What harvey wanted me to focus on was our priority 1 issue, which is basically keeping what we got last session. Last session the housing advocates, there are several groups that speak for affordable housing issues, we all banded -- banned together and put up quite a fit to get more of the volume cap, the private activity bond volume cap that the bond review board administers to get more of that allocated to affordable housing programs, single family and multi-family. Just -- just a really brief overview of the private activity bond program, this is a federal program and the state gets a set amount of allocation or volume cap every year. And then it is up to each state to determine how that is used. How it's divided up. So i.r.s. Gives us the amount per capita, each year, and then they give the projects that they consider to be private activity bonds. And then each state decides how to use that and so any changes in that program have to be done during the legislative session. And in Texas we have six cat gores and that single family housing for -- for first-time home buyers primarily, state voted issues, which are like the higher ed coordinating board, student loan issues, veterans land board, things like that. Small issue idb's, industrial development bonds that do manufacturing, multi-family housing such as the project that david saling just presented to you. Locally issued student loan bonds, what these are higher ed authorities that buy student loans on the secondary market. And then the sixth category is called all other for office reasons. But it is -- for obvious reasons but primarily industrial projects, texaco, exxon, citgo, companies like this, basf, that have large refineries or large industrial projects and a small component of that facility qualifies to be financed with private activity bonds. Which is their solid waste disposal type of facilities. So as one of my favorite legislators puts it, we never have enough volume cap to do private activity bonds in the state of texas. So you have to rob peter to pay paul, so there's this huge fight every session on -- on how the state divides this very limited resource for a program that is usually two or three times oversubscribed. Of course, since I represent affordable housing, I think it all needs to be in affordable housing. Exxon has a very different view than I do. And some of the other categories do, also. What we did last session is we presented a lot of statistical data to the members of the legislature, showing the -- first of all the need for affordable housing, the people who are living in poverty and with all of the resources we have at the state, federal, local, every level, we are only addressing less than 3% of the need. And we had a -- a very strong ally in chairman bill carter who was the chair of the urban affairs committee, who took our legislation, dug in his heels and wouldn't back up. And that was a wonderful thing. The result is this chart that we just passed out to you. The increase between 2000 and 2002 and actually looks more impressive than it was, subceiling one and four are the housing subceiling, one is single family and four is multi-family. During the same time period, we finally got a federal increase from $50 per capita to $75 per capita, so some of this increase is reflected in the per capita amount. We fought very hard, it was a -- it was a very -- very intense dispute all during the session. The chemical council and the others who are interested in the subceiling 6 fought us very, very hard, they said none of this housing goes to low income people and, you know, it's exaggerated, this many people don't need housing. They really fought us very, very hard. They were unprepared or unexpectedly fighting a battle that they did not expect to fight because in the past they would go in and say, well, we need this and so housing, if they need more, they can take it from the other folks. We won and we are very proud of that. And we got a huge increase in available bond money for affordable housing all over the state. We are about to come into another legislative session beginning in January. The biggest difference is that now the chemical council and all of those people who opposed us last time know that we are coming. And they know that we are going to -- to argue loudly to -- to keep what we increased, the number that's we increased our volume up to last time. So they are going to, they are already working very hard to turn that table around, take the housing funds and move them back over to subceiling number 6. On though we have a very large agenda, all of it is second priority to keeping that increase that we got last session. We are hoping that Travis County hfc will support us in that and will authorize harvey to vote for this. It is very important. We are losing more and more federal resources and other programs every year that assist families who need affordable housing. And especially in this area of the state where housing is such a problem.
>> so the legislative agenda is to protect what you got last session.
>> that is our first priority, sir, yes, sir.
>> so there wouldn't be a bill to do that. There would just be a commitment to dig in and fight off the others.
>> I think we will be in the defensive mode, yes. There is an interim -- this became such an issue during the session that the speaker of the house and the lieutenant governor appointed a joint interim committee to study private activity bonds and their use. So it was -- it was a committee com prized of three senator -- comprised of three senators, three representatives. The housing people made a wonderful presentation at that hearing. We are still waiting for the report to come out of that interim committee. It is non-binding on the legislature. But it is a -- whatever is in that report will be a very strong recommendation to the legislature for what they should do with the private activity bond cap. I. I have one question for --
>> I have one question for you. What type of effort has really been pushed toward single family ownership affordable housing. I hear several folks come in asking, you know, what's affordable, blah blah blah, what we have out there on the market is really not affordable for us. We really would like to have home ownership. However, most of the situations that you are going into now, even with the family revenue bond things that are at issue here, we are lookingat something that's not basically for home ownership. Where are we on that. I know we have a policy we started with the county to look at -- at the way -- reimbursement of fees in exchange for persons making certain percentage of the subdivision of the single family dwellings affordable to median family income persons. Now my question is what are we doing at the state level to ensure that there is -- there are opportunities that may be available to us to look at single family affordable housing here -- here that we can basically utilize. I hope that wasn't too lengthy, just a quick answer may not be the appropriate --
>> okay.
>> -- request.
>> if I can kind of answer it in two parts. The affordability problem and the please prices that -- the prices that we see on homes in the affordable category, in the multi-family rents that you see, there's many families that still can't afford even those affordable rates.
>> I know.
>> those are set according to our area median family income. We kind of have a mixed blessing. We have a very high area median family income. I think it's 63 --
>> I thought it was close to 70 now.
>> oh, okay. Mid 60's somewhere. For a family of four. And that's one of the highest in the state. Austin and dallas and I believe the houston area have similar amfi's. And so when the programs are designed under -- under the federal regulations, you know, things are set on the percentage of that amfi. That leaves out thousands of people who are daycare workers and -- and a lot of city and county and state employees that -- that we really have an issue with here in Austin. You know, the bonds are one, tool, sir, they address a certain income levels. Private activity bonds, whether it's multi-family or multi-family, are really not the -- whether it's single family or multi-family are really not the tool to address extremely low mc. We have to bring in more tools for that. We are working, there's lots of housing groups that are working with -- on legislation for the state's housing trust fund and the home program and some other programs like that, hoping to get home ownership for the extremely low. What our efforts last time did was we did increase the availability for single family first-time home buyer programs. Where -- where in the past when I worked with that program for the state, the local housing finance corporations were basically on a four-year rotation. If you got single family bond money this year, you wouldn't get it again, your turn wouldn't come up for four more years. With this increase, that we achieved, now your area should be able to do a single family bond issue every two or three years. So that has helped some. As far as reaching lower income levels, different housing finance corporations, you can always set your regulations more stringently than the federal government does. So different housing finance corporations may have different programs within their own bond program, with increased down payment assistance and closing costs. Fannie mae now has a product that the state just is using this project for -- I think 10 million, 40 million, excuse me, $40 million of their new bond program will be in fannie mae's new program that addresses first time home buyers that might have some credit blem blem -- blemishes in their past. It has a little bit looser underwriting, willing to work more with the first time home buyers, lendsers that are, programs like this, it's very slow. It's a combination of getting changes at the state level and the federal level. The -- at a local or county level, what an hfc can do is more programs that will help with the down payment assistance, closing costs, home buyer counseling, credit counseling, things like this to prepare your home owner so that they can get a better rate or be considered even though they are at lower income. There are hfc's that are working with developers and giving them a financial reward to build low income housing. Or affordable housing. It just depends on the housing finance corporation and what the needs are in that area of the state. There are some very innovative programs that some of hfc's are doing.
>> okay. Thank you.
>> thank.
>> we are -- typically during the session we respond to specific bills. We either support them or oppose them or take a no position response to specific bills. But I think it would be appropriate for us today to generally indicate our support for increasing the allocation for single family and multi-family housing.
>> agree.
>> and I think the state ought to do more than that. But that generally is what you all did last time, right.
>> yes, sir.
>> so we are supportive of that. Mr. Davis is a fighter. He's the county's representative at the -- at your association meetings, right?
>> yes, sir, he is. [ laughter ] we are going to put him to work during the session, too.
>> I move that general support.
>> second.
>> that's important especially in this area,.
>> any more discussion? All in favor? That passes by unanimous vote. With director Gomez temporarily away, but I know that she would want to be supportive of this. We look forward to working with you more and you cover the entire state. But your office is here in Austin.
>> yes, sir, I do.
>> that's good enough for us.
>> thank you so much.
>> I appreciate your time.
>> thank you. There is no more business for the housing finance corporation.
>> move add yowrn.
>> second.
>> I have -- move adjourn.
>> second.
>> that passes by unanimous vote.
Last Modified: Wednesday, April 2, 2003 10:25 AM