Travis County Commssioners Court
May 27, 2003
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Housing Finance Corporation
Let's call to order the Travis County housing finance corporation. 1. Approve minutes of board of directors meetings for April 15 and may 6, 2003.
>> so move.
>> all in favor? That passes by unanimous vote. 2. Review and take appropriate action to approve changes to the regulatory compliance policy.
>> mr. Davis.
>> good afternoon, harvey Davis, manager for the corporation. I'm recommending the changes to the policy in order to address a few of the issues that the board has requested that I address. The first issue that I'm recommending a change in the policy is that a -- a couple of week ago, the board had questioned whether we were being consistent on remedies to issue when we raise issues on the compliance audits, that we are to be sure that we are consistent with the remedies. And so the changes that I'm -- that we're recommending is that for major issues that we then have the -- our attorney send a 60 day cure letter to the owner of the apartment complex and a major issue would be where we have raised issues that could affect the tax exempt status of the bonds. And then for -- for minor issues, what we are recommending is that -- is that staff give written notice to the apartment owners of the issues and then that we do a follow-up audit within the next 12 months. And then if -- if a minor issue has not been resolved, when the follow-up audit has been done, then it would be elevated to a major issue. And then if a -- if a major issue is -- has not been resolved within the time period, then the board would -- would decide on the next step and I think in my backup I have listed some options or some -- you know, lternatives that the board would consider at that point. Then i've also on this -- on the compliance policy change, i've added a -- a new section that spells out the -- how apartment complexes would be charged. Again, a -- a couple weeks ago, the board approved charging for staff time to do these compliance audits and so -- so that approval has been documented now in -- and would be part of the compliance policy. I've also given an example of how the rate would be charged and at the meeting you all -- you requested that we give the apartment owner some -- a notice of -- that we were going to be charging them and so what I'm suggesting, I'm -- i've included in the backup a memo that I would -- kind of a form memo that would be sent to the apartment owners. So what I would like to do would be send the apartment owners the memo, which kind of says in there that, hey, we are going to start charging for staff time and briefly vibe that and then send them a copy of the compliance policy, so that all of the apartments on it would have our complete compliance policy. In addition, the -- the compliance policy does provide that -- that we would give an annual report to the board and so I have included in the -- in your backup a report for the year ending March 31st, 2003, we did complete five audits. Three of those audits were for bonds that were issue understand the last couple of years that were chodo's or non-profit organizations. All five audits there were issues that were raised and so -- so again that's the -- the annual report part. So with that, if you have any questions or --
>> you think we'll know whether the impact of this policy change is positive or negative in 12 months?
>> yes, I think that I would.
>> my motion is to approve the proposed policy and request the staff report back to the court on the success, failure or other impact of this policy at that time.
>> second.
>> any more discussion? Thank you for your prompt and thorough work.
>> thank you.
>> all in favor? That passes by unanimous vote. 3. Consider request to approve release of regulatory agreement and declaration of restrictive covenants related to longbranch apartments and take appropriate action.
>> yes, cliff blunt with thompson co. This is a project that's financed by the corporation in 1983. The bonds have been paid off for over 10 years now. And the old regulatory agreement, deed restrictions have popped occupy a title search in a refinance for the owner, they have requested a release, so by the terms of the document itself, it should have terminated. So it was really not a big issue about this.
>> based on cliff's assurance that this is not a big issue, something that we ought to do, and are legally obligated to do, probably.
>> contractually.
>> I move approval of the recommendation.
>> second.
>> any more discussion? All in favor? That passes by unanimous vote. Is that move we adjourn.
>> second.
>> an enthusiastic board moves adjournment. All in favor? That passes by unanimous vote, also.
Last Modified: Wednesday, May 27, 2003 7:52 PM