Travis County Commssioners Court
February 18, 2003
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Housing Finance Corporation
1. Consider (a) release of lien and (b) reimbursement payment to Texas department of housing and community affairs for repayment of home project loan #36662000-07, and take appropriate action.
>> I'm harvey Davis, manager of the corporation, this is a loan that was made in December of 1996. These loans are non-interest bearing. Reimburse them that amount. Discussion, all in favor? That passes by unanimous vote, with -- with commissioner, director Davis absent. 2. Consider hiring a consultant to assist in the preparation and submission of grant application with the Texas department of housing and community affairs (tdhca) for funds to implement a 2003 down payment assistance program on behalf of the corporation, and take appropriate action.
>> okay. The board approved the -- the rfp process on January 21st. We -- we put an advertisement in the paper and mailed applications to four possible consultants. The -- the deadline for the applications was February the 12th. We received two applications. The committee that the board approved met on -- on February 13th, and the -- the committee is recommending that -- recommending first that -- that we proceed with applying for the grant for home down payment assistance funds. And that -- that the -- that we hire michael hunter or hunter and hunter consultants to administer the program, the -- the reasons that with are recommending hunter and hunter is that he did the prior grant for us and did an excellent job, tdhca has come out and audited the program. And you know we came out very well in the audit. He -- he really knows these -- the -- how to deal with tdhca and knows in details and done many of these grants for home buyer assistance. For those reasons and we would -- we recommend hiring hunter. I would like to make clear that if -- if we proceed from what the commitments of the corporation would be and that -- that would be to -- we would have a charge for preparing the grant to hunter, which would be $750 plus $200 in expenses, there's a $30 application fee that would be payable to tdhca, and the corporation would have to commit to reserving a portion of their funds who -- to advance money for closings on the down payment assistance program. For example, if we -- if the corporation was successful and -- in securing a $300,000 grant, probably around $50,000 would have to be held in reserve to advance funds. So those -- then the other charges that the consultant would -- would be paid would be -- would come out of the -- of the grant funds, the soft costs and the 4% administration fees. I think in the backup, I -- I noted that -- that if the corporation was successful in getting a $300,000 grant, that the consultant would make approximately 30,000 -- $39,000 or --
>> 60 [inaudible]
>> correct.
>> paid after -- you were paid per closing.
>> per closing, right.
>> maximum of 06 based on the amount of the grant -- 60 based on the amount of the grant.
>> each of these loans we foresee as being $5,000, so the consultant would make, assuming we fully originate the 60 loans, then the consultant would make $650 per loan.
>> this is a good thing for Travis County home buyers because?
>> because --
>> the program is -- would be targeted to home buyers buying home in Travis County, but outside the city limits of Austin. The city of Austin being a -- being a pj or participating jurisdiction receives home fund directly from h.u.d. And cdbg money. So they have an extensive affordable housing program, they have a whole department. The county, because the county area isot apj, then to -- to have affordable housing programs, then the county has to go to the state and compete for grants, for these programs. So -- so today there's not really any home -- any down payment assistance programs for -- for a low and moderate income individuals that want to buy a home in the county area.
>> okay. If we are successful in getting in grant, then $5,000 per loan will be available to assist home buyers?
>> that's right.
>> and of that amount, the grant administrator will be paid.
>> except for the -- the charges for the grant application fee and the $30 application fee.
>> the corporation would have for to pay750 up front to get this going?
>> 900 -- well, I would assume $950 because of the $200 expenses and he's in rock wall, Texas, so he's going to most likely incur that amount.
>> okay.
>> I'm also requesting the board to keep the -- the committee that we have sort of ongoing to review the -- the application, through the grant application process. The grant deadline is April the second. The reason is so that we have more input in the program design because with the grant, writing the grant, I mean, we have to come up with a design and -- for the program and so -- so in my opinion it would be beneficial to have more individuals kind of formally involved in that oversight process. If the board does approve hiring mr. Hunter, we would be coming back to the board shortly with a -- with an actual contract and we would be having a resolution, certain grant -- this grant is pretty -- involves quite a bit of work, quite a process.
>> anybody else here on this item? So the corporation is asked to advance just under a thousand dollars. 750, 200, plus 30.
>> yes, sir.
>> and we are trying to get $300,000 for down payment assistance for 16 home buyers. Maximum.
>> that's right.
>> move approval.
>> second.
>> makes sense to me. Any more discussion? All in favor? That passes by unanimous vote. And that motion was to approve the full recommendation, which is the -- the opinion of the money hiring of the recommended consultant coming back to us with an appropriate contract at the appropriate time.
>> that's right.
>> you have been dealing with us long enough to know all of those specifics are contained in that general motion.
>> okay. Thank you.
>> thank you. [laughter] item no. 3, approve minutes of board of directors meeting of februa 4, 2003.
>> so moouf.
>> second.
>> all in favor.
>> all in favor that passes by unanimous vote.
>> move we adjourn.
>> second.
>> all in favor that passes by unanimous vote.
Last Modified: Wednesday, April 2, 2003 10:25 AM