Travis County Commssioners Court
August 5, 2003
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Housing Finance Corporation
Now let's call to order the Travis County housing finance corporation. One item of business. Consider possible event of default on lake view apartment bonds and related issues and take appropriate action.
>> good afternoon. I'm harvey Davis, manager for the corporation, and I would like to review with you the -- what I have found out since a meeting last week. And first of all, I have written letters to the owner and the trustee asking the questions that we discussed last week. A copy of those letters is in your backup. Cliff blunt, who is on vacation today, has written a memo explaining the responsibilities of the board in case of an event of default, which is one of the questions you had last week. And that memo is on the third page of your backups. The owner has late yesterday faxed back a reply to the questions that I asked in the letter, and a copy of her letter is also in your backup. She -- she actually wanted to come to the meeting today, but had some other commitments in san antonio so she was not able to attend. She gave in her letter some figures about their current occupancy rate, what the occupancy rate needed to be for them to be financially stable. Their monthly cash flows and the deficit of the cash flow that they have current at this time to become financially stable. She did say that they expect the economy to turn around for the apartment communities in about a year and that they felt that things were going to be positive -- start turning positive even though they are pretty negative at this time in their current situation.
>> mr. Davis.
>> yes.
>> you say in your fourth bullet, the trustee informed me that an event of default has been issued because of non-payment of interest and principal payments. What is there for us to do?
>> I don't think there's any action that the board should take at this time other than --
>> so be informed and wish the trustee well.
>> yes.
>> which we do.
>> so last week we were asked basically to support the issuance because the trustee had indicated he would probably have to do that anyway.
>> that's right.
>> and the information we got, I guess, looks like they try to keep the apartment complex going, but they were headed in the wrong direction occupancy-wise. They seem to be improving, but based on the numbers they need to see, they are either in for the long haul or are going under, aren't they?
>> that's right.
>> they are way under what they need to break even, it seems. Let's just wish them well, and thank you very much.
>> you are sure welcome.
>> anything further today? Move adjournment.
>> second.
>> thank you very much. We appreciate it. All in favor? That passes by unanimous vote.
Last Modified: Wednesday, August 6, 2003 4:52 PM