Travis County Commssioners Court
June 10, 2003
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.
Corporations
Let's call to order the Travis County housing finance corporation around the Travis County health facilities development corporation, one item common to both corporations. 1. Consider whether to lift moratorium on new contracts with non-profit organizations, and take appropriate action. Mr. Davis?
>> good afternoon, I'm harvey Davis, manager for the corporation of the as you know, we have a -- as you know, we have a moratorium on new contracts with non-profit organizations and we recently received a -- inquiry from a non-profit and so I thought it might make sense for the board to revisit and -- and discuss whether or not to extend the moratorium or what to do regarding the moratorium. The -- there are representatives here from the non-profit that have -- has made the inquiry. I will add that -- that the -- the transfer that the corporations are going to make to Travis County for is budget year is a little over a million $ and at this time it looks line the possible transfer for the '04 year would be somewhere in the range of $350,000.
>> I'm sorry, I missed that. 350,000 represents what?
>> the amount that the corporations could transfer to Travis County for this coming budget year.
>> '04?
>> yes, sir.
>> substantially less than last year.
>> right.
>> noacial both, that's correct. Also in your backup, I have listed the continuing commitment that the corporations have at this time.
>> when we put the moratorium in place, was there a time limit put on it? Did we just say --
>> I don't recall that there was a specific time limit, no.
>> okay.
>> but it was -- you know, my impression was that it was for the fy '03 budget year.
>> okay. Why don't we just hear a few words from the -- from the parties that came to us, especially about the project and the financial circumstances now. The -- they were trying to meet with the members of the board and they did chat with me and -- it is a worthy project. Can you just describe the project for us and tell us about what your total needs are, what you have raised so far, what you are looking for.
>> my name is walter monroe, the director of foundation communities. We are a nonrofit affordable housing provider and social service provider here in Austin. Also, rose lancaster is here, the chair of the capital area homeless alliance and helen Daugherty the director of the homeless alliance. A couple of years ago we partnered with the capital area homeless alliance to develop a really unique property here in Austin, the very first affordable housing community for individuals who are homeless or formerly homeless. A lot of other large cities have what are called sro's, single room occupancy housing. It creates an entry level studio type of apartment with a bathroom and a kitchenette in a secure environment with other social services there. It really has proven to be in houston and dallas and other communities around the country a solution to helping homeless individuals get off the street. We are really excited about the garden terrace sro, it's 85 rooms on william cannon, we purchased the property about 18 months ago, we have started construction in January. So significant projects, about $4.5 million in total. So far we've raised about 4.2 million. We have got about 300,000 to go. We will finish construction early August and lease the building at that time. The first residents will move in in September. We already have a substantial waiting list of potential residents from family elder care, caritas, aids services of Austin, and mhmr, veterans administration, all of these organizations serve clients that are homeless or have very unstable housing situations and they can provide social services, but they don't have a place for -- for those residents to live. So we -- we are excited to be partnering with every homeless alliance and all of these other groups to create the first sro in Travis County. To -- it's about a four and a half million dollar project, we have raised 4.2. It's a unique project because once we develop the property it's self sustaining. We will collect enough in rents between h.u.d. And the private pay rooms to break even with the operating costs to cover staffing, utilities and so -- so if there is an -- if there are available funds that are unencumbered in the housing or health corporation, we wanted to come to you and see if there's an opportunity to partner, make an investment in this project one time.
>> tell us a little about the voucher.
>> it's 85 rooms. 50 rooms have a h.u.d. Rental voucher through the homeless super fund process several years ago. So the residents will pay a third of whatever their income is and then h.u.d. Will pay the rest up to a set amount. Basically guaranteeing the rent on those 50 units. Then the other 35 rooms will be private pay, roughly renting in a $300 a month range, all bills paid, fully furnished. Caritas, the v.a., A lot of those agencies have funds for rent and this gives them an option of other than paying for a hotel or motel for their clients.
>> so the intended stay by residents is for how long?
>> it's actually a permanent housing solution, residents can stay, they sign up a 12-month lease this. He continue to live there long-term. A lot of residents will be there five, 10, 15 years, other folks will get a roommate, back on their feet, move out. It really can serve as a transitional housing solution or long-term solution.
>> the monthly rent would be how much?
>> about 300 a month.
>> who are the other funding partners?
>> the city of Austin has been really the lead funder from the beginning a couple of years ago, they put in about a million-8. Mostly home and cdbg funds. We have a long list and -- in some of the information that I provided, meadows foundation, Austin community foundation, we've raised a couple hundred thousand dollars from private donations from individuals in the community. We have a couple of found daiption grants still pending. Off the top of my head, of the total we have about 2.5 million is governmental funds and we've raised well over a million-five in private funds.
>> how is it that you are short of the funds on something that is already under construction? How [inaudible - no mic]
>> we reached a point in January where we really needed to start construction. We've had minimal change orders, we've had some savings that have occurred through construction and then others -- things that have been more expensive. We have a couple of facilities lined up where we can borrow the fund on a short-term basis to close the gap. But our board felt like in order to -- trying to line up the timing between the city and we have some state funds and the h.u.d. Vouchers, we had to proceed with the -- with the project even though we didn't have all of the money raised yet. Hopefully while we are unr construction, with the grand opening event, we will be able to raise the gap.
>> was there some reason you didn't down scale the project to meet whatever budget you had? Which is the unfortunate reality of -- where all of us have to be?
>> that's a fair question. The building itself and the land cost about a million dollars. There was no way to only renovate part of the building. It's an old nursing home that had shut down.
>> it's not new construction.
>> not new construction.
>> thank you.
>> were there qualification, walter, for being able to come into this facility? I mean much like what the salvation has, I mean, with regards to drinking, drugs, I mean obviously all of those -- or is it just, you know, you have a job -- I mean, I guess you have to have a job. Could you -- you said a third of your pay has to go towards --
>> towards rent.
>> for the rent.
>> we have a long list of leasing criteria. We are going to be very picky and selective about who moves in. The h.u.d. Rent units you have to have -- are reserved for individuals that meet the definition of homeless. Although it's a fairly broad definition. Many more people are homeless than just the stereotypical person that's on the street corner. The -- there are housing laws -- that limit our ability to say, you know, we have to live within the fair housing laws. We are really looking for residents that can demonstrate through their references and filling out a -- an application and then we will do several interviews, that they are getting back on their feet. So if they have a -- a large percentage will have a history of a substance abuse and mental health issues. If they can demonstrate they have those issues under control, they are a perfect candidate. We do have -- a criminal -- we will do a criminal background check and there's restrictions on certain felonies and -- and convictions, but -- but we've -- we've worked closely with lake front s.r.o. Corporation in chicago, a couple of s.r.o. Non-profits in other parts of the country and -- and begged, borrow row and stolen all of the leasing criteria that we can, I think that we have put together the house rules and leasing criteria that make sense.
>> do vets have any sort of priority in anything like this?
>> they don't have a priority, per se, through any of the funding or rules that we've got. There's an s.r.o. In houston that the veterans administration actually helped fund so they have a priority there. We talked to them some about doing that, but that wasn't a possibility or -- we are very committed to making sure this project is a huge success. It's the first of its kind in Austin and Travis County. We have worked very closely with the neighbors and the neighborhood associations around the property to win zoning approval a couple of years ago. The foundation communities and the capital area homeless alliance have a great track record in the community working with neighbors and other properties and the downtown association.
>> how many other housing facilities do you have any central Texas?
>> we have 8 properties in Austin, our foundation community primarily serves families with children, this is the first venture that's for single adults. We serve about -- over a thousand families a year, mostly with a median income balfour $25,000 a year. So most of the families work.
>> can I add ... Some of the people that we'll be serving -- I'm sorry, helen [indiscernible], I run the Austin resource center for the homeless downtown. We have a number of people who are on s.s.i. And perhaps because they have mental illness, that usually strikes in the early 20's and they haven't worked so their s.s.i. Check is $551 a month. They have really a hard time finding a place to live on that income. So some of our people who are living at garden terrace will be employed. Others will have another source of income, such as s.s.i. We are also looking in addition to the people that walter mentioned, we are looking to serve the elderly, which is another thing I see at the shelter downtown. The elderly and people with disabilities and people on s.s.i. As well. Who really are having a hard time finding anything in the market.
>> what about for -- folks temporarily out of a job, down on their luck? Trying to do better but have no cash.
>> we can take them. The definition of literally homeless they too have to start working and pay a minimum of $50 of rent at first, then 30% of their income whatever that is. But we also have a job training program that we will be starting on site so that will help people get situated faster.
>> will you be able to take referrals from Travis County health and human services?
>> yes. Your staff has already toured the building and has all of that information.
>> I was hoping that we would be exposed to this and in a week or two maybe put the specific proposal on the agenda. In my view it kind of boil downs to helping folk who would in all likelihood have to access city and county health and human services programs anyway, this is permanent housing, and sort of market driven being that you can stay as long as you want to, but I would think at the time that you believe that you can make it on your own, in a better place and pay higher rent and circumstances would allow that, you would move out much that's what I hope for.
>> yes, absolutely.
>> judge, I have more of a policy question. It seems like the question that really is before us is whether to lift the moratorium on any new contracts. And I'm -- I'm a little concerned with the number that harvey gave us in terms of the transfer to the general fund. Is that the 300,000 that's in question here?
>> the 350,000.
>> okay. So you are --
>> yes.
>> so if -- if we did do this request, are you saying that we would have no more than $50,000 to transfer from the two corporations into the general fund?
>> I'm saying that if -- if any amount was -- if we had a contract with any non-profit organization that amount would be subtracted from the $350,000. I will say that the 350 is a -- could get larger, I don't see that it -- that the figure would get smallerment but it could get larger as the year --
>> that's why I didn't put this project on the agenda today.
>> I think that we need to get past the policy question of whether we have financial circumstances on item no. 27 that's fixing to come up, all of the good work that's being done on the health care benefits for our own employees, with them having to pick up more expenses, there's still a shortfall of almost a million and I know we all have -- our own set of -- of goals for the budget session in terms of what people want to make happen. But -- but that's my challenge, it has nothing to do with the worthiness of this project because I think that's clear. It's just that there are some broader issues here related to the financial picture that -- that I don't know if our circumstances have changed all that much since a year ago when we put down the moratorium. Good reason, that the general fund needed it and we needed to put our money there.
>> you are looking for all or part of the money basically?
>> we are chipping away at the $300,000 gap any way we can. If -- if you can help with that, that would be wonderful.
>> will be there any reduction in h.u.d. Vouchers due to [indiscernible]
>> fortunately in the --
>> I'm just wondering because I did hear something that they were maybe going back and looking at the number of vouch either that are out now and looking at maybe a possible reduction of vouchers. I don't know if this is applicable to where you are now. Have you heard anything of that nature? Anything being discussed?
>> these vouchers are in a special s.r.o. Program to create permanent housing for individuals that are homeless that were awarded through the annual super [indiscernible] a few years ago. The 50 vouchers for 10 years, starting when we open the doors, so fortunately that's secure. That was part of h.u.d.'s budget three years ago and some of the projects they did 10 years ago they are renewing those vouchers.
>> [indiscernible] with that reduction --
>> right.
>> this is permanent supportive housing is one of h.u.d.'s top priorities. And the reason is they have a 10-year plan to add homelessness. Part of that 10-year plan is housing first. The idea is that when people are homeless and use the jails, emergency rooms, et cetera, it's very expensive and so h.u.d.'s idea is to get people off the streets as fast as possible because the longer they are on the streets, the worse it gets. And they have listed that assist their top priority regarding homelessness. So I would be surprised if they reduced that particular program.
>> you were still counting on seton in lieu of dollars coming in off of their refinancing deal.
>> yes, that is in the calculation.
>> that's in the calculation but just going against all of the commitments that we've made on first t and any baby can, all of the things that are just left outstanding out there.
>> exactly right.
>> so that covers everything, there's only about 350.
>> right.
>> be back with you all real soon.
>> thank you.
>> thank you all very much.
>> there being no further business for either corporation.
>> move to adjourn.
>> all in favor? That passes by unanimous vote.
Last Modified: Tuesday, July 10, 2003 7:52 PM