Travis County Commssioners Court
October 28, 2003
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Housing Finance Corporation
Let's call to order the Travis County housing corporation. 1. A. Public hearing to discuss request for a resolution supporting the issuance of bonds in the amount of $96,000,000 for the acquisition of five apartment properties by theop, llc, an affiliate of american housing foundation, a 501(c)(3) nonprofit corporation; and. B. Give directions to Travis County housing finance corporation staff and applicants on whether to proceed on the request.
>> move to open the public hearing.
>> second.
>> all in favor? That passes by unanimous vote.
>> hi, I'm cliff blunt with thomp so co, cousins and irons, I would like to state at the beginning of the public hearing, notice of the public hearing was published in the Austin american-statesman more than -- actually, 14 days ago as required by the internal revenue code for these types of object geations.
>> can we just lay out what the proposal is, then we will start taking comments. We do have represents from -- representatives from the applicant here?
>> all right.
>> very briefly the proposal is for Travis County housing finance corporation to issue bonds in the approximate amount of $96 million to finance the purchase of five apartment projects in Travis County for the purchase by american housing foundation, actually an affiliate of american housing foundation. These are similar to bonds that we have issued a numerous occasions for both 501 c 3 borrowers as well as for profit borrowers.
>> okay.
>> I don't know if you want more explanation than that.
>> those five properties are located in Travis County.
>> yes.
>> can we just get the name of the complexes or the projects that you have -- if you have them there before you?
>> the names of the complexes are harper's creek, let me see -- the arbors of Austin ash, which is on means meadows boulevard, ashbear park on northgate, harper creek which is on east oltorf, pinto creek, which is on wickersham lane and the trestles of Austin, which is on clayton lane. All of these -- two are east of 35 a little bit north, one is just off of i-35 near 183 -- near 290 and then two are north -- north of -- yeah, north part of town, near the Williamson county line.
>> trying to catch he off guard [indiscernible] softball, by the way. Mr. Davis, you had an opportunity to inspect one or two units that the applicant operates in dallas?
>> yes, sir. I -- last week, I -- I went to two apartment units, located in dallas, these units, american housing foundation had acquired from the same seller, walden properties. That transaction closed March of 2002. So they had owned these properties for about a year and a half. I think the interest of the board was well in the year and a half, what kind of tenant services they provided at -- perhaps how it changed -- how have things changed for the tenants there as -- as today with the non-profit owner that had the tax exemption versus the services that the tenants had prior to -- prior to the transaction. My observation was that -- that basically the tenants services were nothing out of the ordinary, the apartments were in good physical shape, they appear to be managed in a professional and proper manner. That area, if you are familiar with dallas, is in the forest lane of the [indiscernible] section of dallas, north, kinds of northeast, right on -- right on 635 freeway. And for some reason there was -- I know -- although it's a nice section of town, there has been a lot of crime problem in that part of the town. And so -- so the properties they have hired, uniform, off duty, dallas police officers to -- to patrol the -- the apartments back when I was there I saw two uniformed police officers walking the complex. So they have -- apparently this is -- this has helped substantially in the -- as far as the crime problems within the complex. So that was recommended to me as -- you know, as the main tenant services that they have provided. I --
>> those particular units show those up there, also, in dallas county. They are chodos also.
>> they are, correct. I think the request of the board was that we look at something comparable, because they have -- and these bonds were -- are issued by the Texas state affordable housing corporation, which is a state issuer.
>> the applicant had really suggested that we look at apartments in houston, but you appeared to be in dallas.
>> that's right.
>> so you did not go there specifically to look at the units, but you were there on other business or was it a vacation?
>> it was county business. [laughter] we appreciate you doing that. That's how you happened to see the dallas units, though.
>> yes, sir.
>> whether blunt do you think we need to hear from a legal perspective?
>> no. At this point all of the applications are in. From a legal perspective, kind of waiting to see if this is a transaction that we are instructed to proceed with.
>> okay.
>> if christian smith is on the way down here, that's good. If not, that's not so good. So christian please head this way. Two more things as an introductory -- as introductory matters and then the audience -- but from the applicants I do think we need to hear a little bit about fairway. I have gorght 10 numerous -- gotten numerous complaints about the applicant's handling of that particular complex. This acquisition in 2000 specifically, sewer issues and -- and mold and/or hvac. I guess we would have to get a status, get a report of the current state of the sewer problem. And if there are plans to -- to fix any remaining problems, what they are. Tangentially related to the five units, but I think it's -- it's really everybody that I have chatted with has pretty much mentioned that off the bat.
>> right. There is a 12-minute video that we could also see, if we want to, about conditions at fairway and these have been in the media recently.
>> I know we didn't give you all advanced notice that we would inquire about that, but I have gotten complaints as late as a few moments ago by e-mail. So if you have any information that would shed light on that problem, it would help us.
>> again -- first name, mr. Davis.
>> right. My name is james Davis. I appreciate the opportunity that the commission has given us to present in relation to fairway and the complaints about sewer conditions. We have already hired and actually completed an onsite review by -- by an engineering firm as well as an architectural firm and we are already planning to circumvent any of those concerns. Right now, I have walked the property on a number of occasions, have gone into units on a number of occasions, and all of those times I have never observed any sewer conditions that were untowards and none of the residents has ever expressed that concern to me. Ever. Therefore if someone wanted to do that they certainly could have done it while I was on the property on a number of occasions. I would just be hard pressed to determine that that is a valid claim.
>> what approximate the claim of a mold/air condition -- what about the claim of a million dollar/air conditioning I guess heating system problem?
>> that problem is one of a slightly different nature. As we talked about before, we replaced the chiller units. Of course that results in additional pressure and so on. But the thing that really really has struck home with me in regards to mold and middle do you and condensation, and I have observed this myself personally while walking the property, is that residents in the units would have -- would have the temperature in the unit extremely low. Much lower than I keep my own home. And they would open the door and I would observe that while wawging the property. That will definitely cause condensation, if you allow it to stay there, without taking steps to clean it up. It will result in mold and middle do you. That is what will -- mildew. That is what will happen. The way that we have talked about that and conversed about that perhaps undertaking what we call life skill training for residents and providing that opportunity for them to learn exactly what happens in cases like that, I mean, we realize that some of these concepts are not -- they don't understand that some of these things happen when they take those kinds of steps. But we would certainly like that to to be address understand a meaningsful way, not in a negative way. That is certainly something that we're undertaking right now.
>> okay. Any other questions from --
>> yes, sir?
>> just bring up a couple of things. Mr. Davis, it is amazing, I think that everybody needs to understand that -- one of the reasons that you all have a problem with air conditioning units not being tended to, you all have a property that is all bills paid.
>> yes, sir.
>> I will guarantee you, you cannot find very many properties in Austin, Texas that has all bills paid. If you can, I can tell you that you will probably watch in each and every one of them, it's going to to be a heck after lot cooler than it is if you are getting your monthly electric bill. That would lead me to question why in the world would you all have brought a property that was all bills paid. I think you told me, james, that it would be price prohibitive for you to go back and retrofit that. I think that's unfortunate. The other thing about the backup of the -- of the grease, of the grease lines, I had mentioned having had a business in Austin for -- for most of the years that I have been in Austin, and it is -- it's an issue or it can be an issue. That is not to say that you all shouldn't have done your due diligence and home work to find out that you were going to have some major problems with this. I think you all have really gotten a lot of egg on your face. It's hard to explain to people that the city of Austin are basically indemnified of any sort of cause or claim of those kind of instances. I think that is unfortunate. I'm not trying to defend you here. But everybody in this community needs to understand that you all have a couple of problems with these properties that are really, really difficult to get your arms around. I can -- you go to a property, asking for, I don't know that you make announcement that, hey, one of the hierarchy of -- of ahf is here on the ground, if you have any issues that you need to -- to meet me in such and such apartment, I'm sure that you could have found somebody that would have said that, because I like the judge have had a number of people come or send e-mails to me. Not to mention I think probably what we are going to get to watch on the screen here is in a second is one of the major news stations covering what's taking place on your property.
>> right. If I may address a couple of points that you mentioned. When the property ayatolla khomeini acquired, a youth for life schedule was presented. And on that youth for life schedule basically what it does is arrange the capital items based upon the life expectancy of that capital item. When you need to address any needs for that capital item and how much it's going to cost you to do so. Our youth for life schedule, for the acquisition of fairway did not have any of these items in them. In fact we have far exceeded what capital expenditures were estimated to be needed in the property from the time of acquisition. Therefore, it was not expected. We never expected to see that. This was done by a bona fide engineering firm. We are not engineers so we don't have the ability to second-guess them. In regards to our visits to the properties, it is well-known that we will be on site when we go out. In fact when we go out in many cases it is to accompany onsite reviews which are being conducted by either a h.u.d. Contract administrator or other bodies that have oversight of the property. I can tell you that no one came forth in any of those incidents. It is well-known among the residents that these things are going to be conducted.
>> was there a department manager?
>> I'm sorry.
>> are you here in Austin?
>> yes, I am, uh-huh.
>> is there -- who's the manager of fair ways?
>> the manager of fairway is presents today, her name is peggy. Also the regional manager for fairway, mr. Bryant beccio is also present today.
>> what's your position?
>> my position is vice-president of compliance.
>> okay.
>> and -- the question that I have got is all financial in terms of there's some very legitimate concerns and questions being raised by aisd, the community college, city of Austin, even Travis County, because a chodo the way it's written right now these properties go off the property tax rolls, there's legitimate questions being raised about the loss of tax revenues forever more. This is a big book. There's a lot that's gone into this deal. Can somebody tell me from american housing if this deal does not go through with Travis County, is there another -- I won't use the word issuer, but I will say bank or some other financial institution that will do this deal whether we are a part of it or not. There are other negotiations that are occurring with another entity that has an interest in going forward with us on a taxable bond basis if this deal does not go through and I believe tom here can address those issues.
>> my name is tom gibson with [indiscernible] associations. One of the underwriters of the transaction. I can assure you guys that we have come up with a financing strategy that will finance these transactions, taxable, the preferred way is tax exempt. I share the details of those with lad patilla, it's a creative structure that I will be happy to share with any of you guys. Basically given the diversity of the portfolio, we are in four different states, 19 properties, we are able to deliver enough proceeds to support the sales price and make it basically a neutral type of transaction if it went taxable to ahf, to the seller, to all of the professionals involved. The only people that would not benefit from the transaction would be the issuer, the fees we are paying you and it would be yet to be seen whether the residents, you know, ahf, if it's a taxable transaction, would fall under different safe harbors so the reduced rents that we have offered residents or the seller has offered residents to get them into the transaction they would not be required to maintain those reduced rents given their charitable purpose they may choose to continue those reduced rents, but they are not required.
>> let me ask the follow-up question in a different way. If you go that other path, will these properties be taken off the property tax rolls because rah hf is a chodo.
>> that's correct.
>> in terms of -- i've had rather painful conversations with folks that our choices may be a whole lot more limited than we would like to believe. There is either it comes through the Travis County housing finance corporation and while it is not perfection and it does not make everyone whole related to the lost property taxes, there are dollars that would flow up front and for a guaranteed 10 years into this housing finance corporation, in lieu of taxes. Or the option is it still gets taken off the property tax rolls, and that four million payment in lieu, which is the value of the up front and over 10 years minimum, goes away. So it's either it's coming off the tax rolls either way.
>> that's a correct --
>> let me ask this question --
>> is that a fair assessment or not?
>> I think there's one -- one item that is not quite correct. I believe that the ongoing fees are dependent on cash flows and that the transaction generates the cash flow so there would not be any devotion of the ongoing fees.
>> that's correct. But inversely if the cash flows are higher than projected, s and p has rund written you will get more money. If you look at the smp underwriting it's about $600,000 less than the trailing [indiscernible] so we believe we have been conservative in our estimates to you.
>> the up front fee is absolutely -- I'm sorry this is the last thing that I ask, there is the up front fee of about 400,000.
>> if the deal gets done with or without us, why is our involvement important.
>> because it's a more beneficial transaction for ahf.
>> because?
>> largely, well, I believe the cash flow would be stronger under a tax exempt solution. It clearly a better transaction for the residents and it's -- in all candor it's an easier transaction for us to execute. We have been going down this past for a couple of months now, framing out documents, this would be a major shift at a certain point in the process that we would rather for the have to go to. Of course we are creative guys but we will go through it if we have to. But it's -- it's just the better approach, doing tax exempt bonds is always better than doing taxable. I it provides the flexibility of transaction to ahf, it's just a better route for everyone for our side.
>> if we get the fairway issue decided, if fairways is another unit, not part of the five in question here, whether we do the deal or not, the residents out there it seems to me could get their complaints addressed. What mr. Davis is saying is perhaps they have been complaining to the wrong people?
>> yes, sir.
>> who are the right people to complain to?
>> the right people are the onsite managers and if they can't get satisfied, certainly I'm right here in Austin. Please call me.
>> and your phone number is? [laughter]
>> i'll pass out some cards for you.
>> you will make sure that I have that so if they want it they can contact a member of the court, we can make that available. I did think it was -- I really got just numerous complaints about fairways, I thought that we ought to --
>> you are certainly right. We should address that.
>> okay. Commissioner Davis is that --
>> yes, judge. I have scweferl questions, I guess I'm spinning off from where I left last time you were before us. I have additional information here bought in from afc. I understand they would -- from acc, they would lose about one faculty staff person a year if something like this was to go through as far as the loss of revenue as far as taxes and things. Of course aisd still have a legitimate concern because of loss of tax revenue. Both the city of Austin, who is also in a financial bind, budgetary-wise is -- we lose revenue if we are to take money off of this -- this property off the tax roll, which generates a revenue for these entities. I understand there is an alternative, if you did not come to Travis County, you would have alternate sources to go through. Let me ask this question, have you been successful going through other sources of funding other than a governmental entity here in Travis County?
>> not in Travis County.
>> not in Travis County.
>> yes.
>> in --
>> where have you had the success.
>> in Texas we have done taxable loans on chodo deals as well as florida which is another tax abatement state. California, we do it this -- if quite often. So -- it basically comes down to an issue of proceeds. We can take the strength of the property, the cash flow it generates, either cap that strength at a tax exempt rate or a taxable rate. You too taxable, we deliver less proceeds, but in this instance it's not -- you know, where rates are, where they are currently delivering sufficient proceeds for us to close the transaction. We've had success in doing this, but not in Travis County. This has been brought to my attention, also, in the new state law that's gone into effect in January, which will be a disintegration I guess as far as chodo's are concerned with that type of exemption, is that true?
>> yeah, you won't see these types of transactions after January.
>> after January. Okay. Next, I would like to find out -- I think the last meeting that we had, I believe there was testimony that your particular organization had made visits to governmental entities to show what kind of impact this would be on, is that correct?
>> talking to?
>> to aisd, the city of Austin, folks like that.
>> newman has not, I understand that you have -- [multiple voices]
>> -- aisd.
>> aisd [multiple voices]
>> yes. They are [multiple voices]
>> one at a time.
>> yes.
>> go ahead.
>> there have been attempts made to contact representatives from aisd and as of yet we have not been successful in procuring an audience with them yet.
>> have not been successful.
>> no, sir.
>> as an audience.
>> any particular deal, taking the property off the tax rolls, last week when you did come forth I did at that time indicate that there were other people that are doing -- the housing in the area and they had a lot of other amenities, yet their property was left on the tax roll. And then I told you they were basically comparable. To do just that and also of course those amenities that go with that. Now my question to you is that -- -- without taking the property off the tax roll to be as comparable as some of these responses I have gotten from some of the folks out there in the community, doing some things -- [indiscernible] not taking the property off the tax roll.
>> when you take a look at affordable housing, the industry in general, what you will find is that there are structures that run a gamut. We are not homogenous and instruct -- in structuring affordable housing deals. The way that this particular deal is structured the answer to the question would be not really.
>> not what now?
>> no, not really. The way that these deals are structured and the chodo format, that is an essential function in their success.
>> it's a chodo or nothing.
>> that's not what I'm saying.
>> I'm saying if you structure a deal under the chodo format, tax exemption is a part of the success of that entity. There are other entities which are not structured in this fashion which do not use the same mechanisms that we do. And therefore they are successful in their own rights. But that's -- that is the affordable housing community. There is more to one type of financial structure that is employed. But --
>> and I believe we this corporation has financed several transactions in which the -- the owner has gotten tax credit in addition to bond financing and so the tax credits has give very much them subsidies to -- given them subsidies to provide the service like [indiscernible] branch landing has fine tenant services at their complex. I think what they are saying is that, well, this transaction does not have tax credits as a subsidy, it has property tax.
>> what is happening, what mr. Davis is expressing, is that when you secure tax credits from -- from -- you are then able to go out and sell those tax credits, which would then be an equity infusion for the structure. That is not what we are looking at here.
>> well, I'm going to beg to differ with you. The reason for that because I have evidence here that can show me difference in what you are saying and what I have here in my happened. I will ask this question in a few minutes when the time is appropriate to come by and testify in regard to this. It mr. Walter moroe. Who was here last time. I asked for certain information to make a comparison basis. What what I'm looking at here it's a heck of a lot different than what you are saying. Again, I'm very concerned about property being taken off the tax roll i. Haven't heard no one yet tell me they are down there performing -- inform me how we are going to make up the difference. In other words we take these off the tax rolls, it's going to hit the pocketbook to make up the difference. That's another bill that we are hashing around here. Of course this is where I'm trying not to go. But again, when that appropriate time comes, I will definitely, hopefully that mr. Monroe can come down, we can see a variance if a lot of stuff that he's saying, what they are saying, what they're doing right now, which is substantially a lot less cheaper than what you are talking about now and also the amenities with that and also the property still on the tax roll. So I want to go and get the best bang out of the buck for the residents of Travis County, but also get the quality -- hold on -- also get the quality of the residents in Travis County, and also not take stuff off the tax rolls. That's what I'm looking for. That's where i've been kind of leaning during this whole conversation.
>> just to respond to you briefly on that. I just want to say, as I said previously, there are many structures in the affordable housing community that deliver affordable housing. If a instruct -- if it is structured as a chodo, I don't know what you have before you, I haven't seen it is a chodo format, tax exemption becomes a part of that, an essential part of what that structure is all about. Otherwise, why would you structure a chodo?
>> yeah.
>> again, my opposition is to take -- is having a protein off the tax roll.
>> yes, sir, I -- [multiple voices]
>> Travis County, Austin is a city that has many properties that's already off the tax rolls and by adding stuff and bringing other things in addition to what we already dealing with, in my mind, is in the best interests of Travis County or the taxpayers.
>> if I could add one comment before I walk away. There's certain ways for 501 c 3's or any borrower to bias sets. One way is conventional equity like walden. Tax credit equity is another way, then the c-3 acquisition is a third way of how we do business. The tax exemption is in effect their equity in the transaction. Not paying property taxes. Walter is going to get up here in a few minutes and show you transactions where they didn't need the tax exemption to close the transaction. You are going to find some of those transactions everywhere. But I can tell you straight out that the quality of these assets, there's no way, you can't buy the quality of these assets and pay a fair market price without doing one of the three ways that I said, conventional, tax credit or getting an the exemption. Walter is going to say the seller is charging an inflated price and using the tax exemption to pay that. That is absolutely false. We hired third market appraiser, the sales price is [indiscernible] of the third market appraised value. If you look at wallden's basis, the sales price is 92% of their basis in the properties. Admittedly the markets have softened up went from 2000 and have softened, but the fact remains that the price is fair, this is a way for these guys to finance these properties.
>> well, why don't they speak for themselves at the appropriate time.
>> christian, I asked him to contact aisd and del valle independent school district. Give us -- tax impact, show us the information that you got.
>> I contacted larry throng the chief financial officer for aisd, he called me back the following day. Currently there are, of the five properties, four of them are in aisd, one is in del valle. The current taxes paid to aisd are 739,332, if they are taken off the tax roll approximately $554,000 would be the net impact to aisd in the 2004-2005 school year. Aisd receives about $600 million in property tax revenue. It's slightly, it's about 109% of their total property tax revenue. Mr. Throm indicated that the net effect would be for the school district, if that were the only variable hit them, they would have to cut their budget by $554,000.
>> why -- why is that important for aisd.
>> what is -- why is what?
>> the net figure important?
>> because under robinhood it would have a net impact of $554,000 less revenue and have to -- in order to balance their budget, they would have to reduce expense by $554,000.
>> okay.
>> del valle is not under robinhood, therefore the -- one of the properties is in del valle school district. The total property tax paid is $159,000 to del valle and del valle would lose that annual amount.
>> I'm confused. Because we have this thing when properties are valued every year by mr. Corey, we lost $2 billion in taxable value this last year, a bigger number than has we are talking about here. What happened is that there is a recalculation that occurs on an annual basis to give everybody a new effective tax rate. One possibility is if nobody changed their behavior or didn't change the tax rate, that's precisely what would happen in terms of people would have to cut by that amount to make up for the lost revenue. But the reality is that there's a recalculation every year because there are constantly properties coming off the property tax rolls and being added to the tax rolls. Agricultural land that becomes a subdivision. Land that gets bought by a church and becomes tax exempt. Mr. Corey, going through our appraisals and 20% drops in evaluations and there's a recalculation to occur.
>> the numbers that are -- that I'm giving you are the most current numbers that are available.
>> nothing changed.
>> if nothing changed. It's certainly from year to year. There are increases and decreases in the amount that individuals and commercial properties pay. My guess is that it's probably fairer to say that these provide you an order of magnitude as opposed to precise numbers. And even though you didn't ask the net impact to the city of Austin is $254,000. And about $257,000 to Travis County and about 23,000 to a.c.c.
>> are you talking about that's the impact in a single budget year?
>> yes.
>> which is what we wouldn't collect for that year.
>> that's correct.
>> but I don't think that's the whole story and when it comes time to hear from mr. Valdez, the vice-president of the school board, he can tell us what the real impact would be when you remove that value from the aisd's tax base. If and when robinhood runs out and then they are going to have a permanent loss of value to the independent school district, which for me is -- is -- that's a -- that's scandalous, to remove all of that value from the independent school district for public education, it's giger than what we are thinking this is. Bigger. Same thing for the independent school district in del valle.
>> you are correct, Commissioner. The numbers that I'm providing you are under the current state financing plan for schools. Should robinhood be dissolved in some fashion it would know longe be a $554,000 --
>> or 55 million or something like that for -- for aisd. I think that's scandalous. I really do.
>> scandalous is such a strong word.
>> it is, because it's a strong impact. To public education. I have a few things, we can address this any way we want. The bottom line is this that I think it's scandalous to remove that kind of value from the public education. While it's a good deal for ahf and maybe sort of a good deal for Travis County, I really don't think that it's a good deal for residents. And i've heard and I know y'all have just owned fairway one year, but i've heard complaints about fairway for years and years and years. And that's precinct 4 and I'm not going to have any more complaints. I've had it. And that's all there is to it. The after school activities that you are proposing to fund are not anywhere close to the need to meet the scale of that problem, of that need. We are looking at something on a pilot project process of $330,000 for just two zip codes. On a pilot project basis. And so I think the money that you are trying to put in this is by no -- it's not -- doesn't even come close.
>> are you seeking -- are you speaking of the amount of money that we are anticipating.
>> yeah the one --
>> putting into the five properties.
>> sure.
>> [multiple voices]
>> I think one of the things that you need to understand about the community that's we are financing and opposing in this transaction is that they are comprised of one and two units. Therefore the types of residences that are going to be required there are going to be completely different than if you were talking units with three or four units. You are not going to have as many families and those -- in those communities as you will have single people. And their needs are entirely different than those with small children.
>> so we are not going to have small children in these --
>> no, no, I'm not saying that. We are not -- [multiple voices]
>> what the number is?
>> I'm not saying that we are not going to have any. I'm saying the -- the percentage -- [multiple voices] [multiple voices]
>> do you have any idea what it is?
>> no, we can get that information for you. I don't know how many children are --
>> that still doesn't remove the concern that I have for children and their needs after school and their needs in public education.
>> any other questions of christian.
>> thank you very much, mr. Smith. We may need your seat now. I would hike to try to get this resolved, joined here we renee williams, also a --
>> my name is bryan beccio. We have got through over the past several months. I know you received e-mails and phone calls, we have addressed a number of items that have come up and we have addressed some in of the appropriate ways meeting the maintenance standards. We don't deny that we've had some problems. Thus we hired an engineering firm to look into it, what the long term strategy of addressing those particular plumbing items, how we are going to address them both presently in the future. I wish we were on record. The method of addressing those with southwest housing representative of h.u.d. For this area. We have followed those guidelines, we have also followed emergency guide lines and property management is not the easiest profession. We didn't [indiscernible] professional practice. Emergencies will come up. As you take time to respond to. But I have think we have met all of those reasonable and sometimes above and beyond the reasonable periods of time, including bringing in maintenance assistance from other properties, looking at emergencies, when they are for the done timely enough based on our standards which exceed the standards that we were allowed to meet under the h.u.d. Guidelines of as far as the e-mails that you have received over the past several months we have really developed a positive relationship with the residents of fairway. Can anybody say they have 100% of everybody at fairway --
>> but have you fixed the sewer problem.
>> we have fixed the sewer problems. We have addressed all of the sewer lines if one breaks, we address and repair it. We are coming up with plan, presently obtaining proposals on larger scale replacement of those fine lines, again this is what we purchase and addressing it. The air conditioning it the same scenario. We examined the air conditioning situation. We now have two chillers in full operation on that property, that is an all bills paid, several properties are all bills paid so it does get a little tough. Those have been the two major items that have come up with the property. Currently we are dealing with a work order system so they can call in a work order or report it in writing. It's helping to expedite it as far as repairs are concerned with the needs come up. If you are receiving e-mails as the regional e-mail, I will give you mine right now to go ahead and send those e-mails for me for proper addressing of the request for proper. Bryan at american housing.organize. Brian with an i. Brian@americanhousing.org. I will like to ask someone to speak on where we are with the problems.
>> renee we are going to jump into the public hearing part of this. Mr. Davis we need your seat. The next, mr. Valdez, representative rodriguez come fort. There should be three vacant chairs.
>>
>> [one moment please for change in captioners]
>>
>> we've had meetings with the resident and i've expressed my concerns, i've let them express their concerns to me on an open agenda. I'm based presently out of houston, Texas. I'm in the process also of moving to Austin to work directly out of Austin, so they have direct access to me as well as a property manager as well as mr. Davis. There are a number of residents that have my cell phone number that have been able to call me on the weekends if they were not satisfied, and certainly that is very customer service based, when I'm on -- come off a plane, they're able to reach me. If they just want to chat, if they just want to be frustrated or if they want to talk about an actual problem, if it's not being addressed properly. So that is the type of relationship that we're developing, certainly not retaliatory in nature at all.
>> thank you.
>> good afternoon. I'm yvonne williams. The residents know me as ms. Rene williams. And i've been at fairway for about 16 months, 18 months. And I have seen the changes. I have seen the problems. I've seen the solutions of fair way. We have a lot of negative publicity at fairway, but those are from people who are thinking about themselves and what's going on in their complex, in their building themselves, not the whole complex. I had a little speech and everything to say, but I'm not worried about that. But the air conditioning, the plumbing, all of that is solved. We have no more problems with that. The other issues about the mold and the drains and things like that, that's in home, that's housekeeping. That's the people in their own homes. They need that home living class or something to know that you do not power grease down the drain or you clean your dust and things like that. That's where a lot of the complaints are coming from. But fairway I believe has improved quite a bit these past six to eight months. It has really, really improved. Our problems were in the summertime and that's where all the complaints came from, the air conditioning when it was hot, you know, and there was no air. They had some fans and things like that. It was -- it's all been solved. And the only way we're going to solve it is if our tenants get together and talk as one and not against each other at all times. That's why we can't solve anything because no one's working together in the complex right now. I'm one of the residents and a parent who volunteer, who help out with the free lunch, help out with any activity, parties or whatever, any type of activity for the kids and the residents in the complex. I'm hoping to get our resident council back up and running again, that way we won't have to be running here with all the negative things, we can work it out together amongst each other in our own council or whatever and when we do need to bring it up and we need something serious, we can bring it to you all and show that things will get better. As long as we work together in the situation. But fairway is a blessing to a lot of us and a lot of them are not realizing. But fair way is a blessing because a lot of it are parents. They have several children, they do not have jobs or they have a low paying job and they're not understanding when you get a place like that, you need to take care of it. You need to appreciate it. Clean your home, you won't worry about mold. Don't open up your doors and windows when you have air conditioning set on 40 and 50. That's where your mold is coming up. That's where the rodents are coming from if you do not clean up after your children. We did have those problems. Any other problems that come up, they can be solved also, any other issues that come up. They have to come together. We need to get a group together and talk amongst each other to bring it to the apartment manager or to the council or whatever to get it solved. And that's about all I really have to say, but this is my feeling as a resident.
>> I understand. Thank you, ms. Williams. We will need those two seats. Will carmella and Karen pop come forward?
>> thank you, judge and Commissioners, thank you for letting me be here. As I was telling daniel owen, I'm not used to testifying to people outside of the Texas legislature, so bear with me. I wrote down some written testimony that I'm going to try to just read off to you and i'll be happy to answer any questions afterwards. What I want to talk about today is basically my experience in the legislature on this particular issue. There's a bill that I worked on with peggy ham rick, who is a republican chair woman in the house, so I'm a little bit familiar with this particular issue. What our intent was in terms of the law that's being -- that will change, go into effect January first of next year. First I want to begin by offering a personal affirmation of my personal support in affordable housing. My district here in Austin has a critical need for housing that is affordable that is below the area median family income. In fact, because this index is so high, the highest in the state of Texas right here in Austin, many families with two bread winners so to speak, bring in less than 40% of amfi. The cost of housing in Austin is usually the most significant financial stress these working families face. In this most recent legislative session we considered some issues surrounding the investment of public money in affordable housing. Specifically it is as it relates to the kind of tax break that are being considered right now today. The chodo community housing development organization property tax exemption. This is how I define a responsible public investment in affordable housing. Local governments which subsidize the development and preservation of affordable housing provide a valuable public benefit when the investment of public money results in greater affordability of housing for families which could not otherwise afford a safe and decent home which is adequate for their household size. Additionally I believe it is appropriate for this public investment to provide certain support services to families who occupy that housing such as after school care, learning centers, adult literacy program and other services which address fundamental barriers to the economic improvement of these families. The legislature this past session tried to stop abuses in this area. This issue arose because of provisions of the original law, which will expire 64 days from today, January first. The original law allowed abuses of the property tax exemptions. Cities, counties and especially school districts have watched the property tax base erode and at the same time the addition of new exempt units meant new populations with needs and services. The focus then fell on the question of public (indiscernible). Many of the developments which received the benefit of the chodo tax exemptions were providing housing units at prevailing market rental rates. In other words, they were taking the public money and providing nothing in return. It was free money for developers. All they had to do was create or associate with a qualifying nonprofit. This practice became a burden on local governments and on their taxpayers. Responsible nonprofit housing organizations took the lead to correct this. They worried that the entire exemption which allowed good actors to do great things would be abolished altogether because of those who abuse it. Those profiting from the abuse spent a fortune on lobbyists seeking to delay implementation of these reforms. We fought this issue on the floor of the house on at least two occasions. I worked diligently with a well established republican committee chair to initiate the reforms as soon as possible. American housing foundation and others fought just as valiantly to extend the deadline for a few months so they could get one more deal through. Judge Biscoe and Commissioners, I believe this is that one deal. Median family income in Austin, the Austin area is about $66,900 for a family of four. There are two ways that Austin housing foundation could -- I'm going to be referring to it it as ahf from now on, could satisfy the existing requirements of affordability. They could aagree to set aside one unit out of five to rent out at a rate which is affordable to a family earning 50% of median family income in Austin or about $43,453 or less or they could set aside two units out of five for and agree to set rates that are affordable to families at 60% of amfi. Which is 40,140. So they had two choices, they could either do it at 50%, get two out of -- I'm sorry, they can get one out of every five units at 50% of median family income or do two out of five at 60%. To be fair, I'm not sure what they're proposing at this point. I don't know if it's the 50 or the 60 percent of amfi. In the first case a two bedroom apartment would qualify as affordable if it is offered or leased at $836..25 a month approximately. In the second case the applicant could rent the apartment for $1,003.50 approximately. To note whether there is any -- if there is any affordability as a result of this deal, we should ask three questions. Could the units at these 20-year-old buildings be rented for either of those rates in today's market? Could a family at these incomes find suitable housing at or below these rates in Austin's existing rental market. Would families of these incomes consider these rates to be affordable? In these places that these apartments that they're considering buying, could they actually rent for $836.25 or just over a thousand dollars? And I'm going to argue today that they cannot. They would have to rent for lower than that anyway in this current market. Sound like a great deal for ahf. This financing scheme, however, comes at an incredible high price to Travis County taxpayers. The current total appraised value of these five apartment complexes is over $50 million. Under the law that we just changed, ahf will be able to move the entire value of the acquisition, all of the units, off the local property tax rolls. The change that we made in short would say that only those affordable units, say the two out of five units, only the ones that are affordable would be taken off the tax rolls, minimizing the impact on school districts, community colleges, city of Austin, any taxing entity. That was the intent of our legislation and it was -- our intent as well, and I'm going off script here, to have an immediate effect. And we had a lot of bipartisan support, both republicans and democrats working together on this, we didn't have enough et votes for the immediate effect. And so we had to deal with it. We have postponed the time to January first instead of immediate effect being whenever that was we debated that late in the session. And I think it was -- the reason why we fought for immediate effect is to close that window right now. We saved the local taxpayers money now, not to do away with chodos, absolutely not. But to close that window immediately so that it's minimizing the effects on the tax base right away. Instead, it allowed a window to be opened, which is what we're seeing I believe here today.
>> can you tell me I guess in -- of what impact this has all over the state of Texas how the chodo's and where they are and eroding the tax basis? --
>> I'm having a little bit of trouble hearing you. Can you repeat it?
>> can you tell me what impact, if you have any analysis at all so what impact this has across the whole state of Texas as far as the erosion of tax base from the school districts and any other cities?
>> I can't give you specifics.
>> do you have any ballpark?
>> I can't give you specific numbers other than ms. Ham rick, who is still here, the chair woman that I work with, is from I believe the houston area. And this came about over I think a couple of sessions where there was some complaints that we don't want to necessarily do away with affordable housing and the chodo program, but we need to do something to minimize the impact on school districts. As we said earlier about robin hood or whatever you want to call it, it does -- it's having a huge impact on local tax bases all over the state, whether you're part of the robin hood school district or not. It has a very negative impact. So to answer your question, I don't know specifically, but it was enough to get ms. Ham rick and others to work on this issue to try to minimize the impact. So I don't know the specific numbers.
>> and we basically have the same interest, continue to provide affordable housing for the community, but of course, ensuring that we don't erode our tax base while doing it. Nobody's -- as far as I'm concerned, I'm not arguing that point.
>> may I say something?
>> how many are planning to give testimony today? I see seven hands. Eight.
>> did I go over my time.
>> we do need to try to limit our testimony to four or five minutes.
>> I'm sorry, I'm almost done.
>> yes, sir, I'm going to let you finish here, but rather than me calling names and -- we'll cover these three. When someone finishes, whoever plans to give testimony, just come forward and have a seat. One person needs to come forward right now. Whoever plans to testify. It's not the time to be shy. [ laughter ] we'll go around and start right here and work our way around.
>> thank you, judge.
>> the real victim would be all of the other taxing jurisdictions in Travis County, especially our school districts. We're already under extreme financial pressure because of failing school finance system. And indeed we'll suffer the lion's share of this tax give away, approximately $740,000 a year. The number has been, I think we said, about 500,000 a year. It also came up and I think that's more accurate. But the most dramatic effect will probably be the del valle independent school district, which already has one of the highest property tax rates in Travis County in order to compensate for the low property wealth of the district. While 249 units of the president clinton tow creek apartments complex will contribute substantially to del valle isd student population, the loss of $159,424 in annual taxes will wipe out the funding for two full classrooms. And as well acc stands to lose enough money probably to lose at least one faculty person as well is what i've been told. With that, that's the end of my written testimony. I'll be happy to answer any questions if there are any.
>> questions?
>> thank you very much. We appreciate your input. Thanks for the written comments also.
>> good afternoon, judge Biscoe and other members of the Travis County Commissioners court. I'm doyle valdez, president of Austin isd board of trustees and this is the secretary of the board. And I appreciate the opportunity to speak with you today about the district's opposition to you granting the bonds to the american housing foundation in the amount of $96 million. A sent a letter to you last Friday as to why we're opposed to this initiative. First and foremost we're deeply concerned that this item would remove some $55 million from taxable value from the district's tax rolls, resulting in a loss of $739,000 after adjusting for the chapter 41 rechap tur payment for the state. Otherwise known as robin hood, aisd realizes a net loss of $550,000 with 189,000 going to the state. This would equate over 10 year period of 5.5-million-dollar loss at a minimum. I want to put a face on what $550,000 can buy for our students. This is equivalent to 13 teachers at an average salary of approximately $42,000 a teacher. And to put this loss in a larger budgetary perspective, over the last three years, aisd has cut $40 million from operating budget, cutting $29 million last year alone. To put this loss in a larger -- and the reason we're having to make these cuts is for the last two years aisd has been at the state's cap for maintenance and operation of $1.50. We are in fact living on a fixed income. School districts don't have any other sources of refuse revenue like sales tax, so we have hit the financial wall. At the same time, we have made these deep and painful reductions. We have also sent $261 million, that's $261 million, to the state in a chapter 41 payments. 139 million in 2003, 90 million in 2002, and 32 million in 2001. This current year or this coming February we estimate sending away $159 million. We also are facing declining or at least flat property values for this year, along with a very uncertain future and with a pending special session in the state legislature to make long-term major changes in how we fund public education. We have 78,000 students and 10,000 employees in aisd, 52% of our students qualify for free and reduced lunch. It is my fiduciary responsibility and obligation to fight for every dollar for our students. Aisd wants to maximize our tax dollars and protect every dollar for our classroom. We appreciate our many partnerships that we do have currently with Travis County. For example, our truancy project and communities in schools initiative. We want to continue and enhance these partnerships. I respect your work and the decisions you have to make today. I've been there and done that, so I truly understand where you are today. But I urge you not to approve these bonds, but to work with us and the city of Austin to find viable partnerships that will address our community's needs for affordable housing. We had the opportunity to talk to the del valle superintendent bernard blanch art who cannot be here today. He totally supports our views here today. I do want to make one statement. We -- there was a statement made earlier about that the tax rolls do change every year. This past year we had approximately four percent as an average in declines. That cost aisd $24 million that we had in addition to our operating costs that were reduced, but the way the chapter 41 enforcing the robin hood tax laws are set, we still had to pay an additional funding to the state, so it was almost like the perfect storm, tax values went down of $1.50, and we spent more money the previous year of $39 million. It's not a perfect world, we know that and we know you have hard decisions to make. I would challenge you. I know these gentlemen talked about yes, there's other funding that they can do, but they have 64 days to make it work. They have until December 31st. And i'd rather they go out and do what they have to do and get that funding than y'all have to make the decision you have to make. We are in this together. Travis County, I know a number of y'all are on the c.a.n. Initiative with other people around Austin. We're working together, we're working with the city of Austin on a number of initiatives. And we look forward to that and hope y'all make the right decision. Thank you.
>> thank you. Next.
>> I just came to -- [ inaudible ].
>> thank you.
>> I'm linda Moore, president of the north Austin civic association. Two of the apartment complexes that you're considering today are in our neighborhood boundaries, and that is the arbors of Austin and ash buriry park. The two that are north central around rundberg lane. We have affordable housing in our neighborhood. We have 152 section 8 units available. We have three public housing projects, one of whom is north gate right here one of these apartment complexes. And we have two more complexes that I'm aware of that cater to low income residents. What we need in our neighborhood is something to attract middle income residents that will become homeowners, that will have a pride of ownership. And I see many of the low housing complexes clustered together in the 41 zip code and the 58 zip code, and not very much of it is spread throughout the rest of the city, so I would urge you not to fund this project and to urge the housing association to look for some affordable housing in other areas that do not have it right now. Thank you.
>> thank you.
>> my name is sylvia zapata, I'm a member of san jose catholic church and I co-chair the Austin interfaith. We have myself and ms. Johnson and ms. Polk who will take no more than three and a half minutes of your time. Affordable housing is a big issue here in Travis County, and we are happy the issue is on the table. It is imperative, however, that we find the best organization to work with us on housing. Our research has resulted in that american housing foundation is not that organization. It is not the organization that is looking out for the best interest of our people in our communities. American housing foundation has existing properties which include fairway apartments located in montopolis that have very serious maintenance and unhealthy issues that are affecting these families and their children. American housing foundation also claims tax exemptions by working with the community organization named Texas interfaith in houston. But we want to make it very clear to the Commissioners court that they are in no way associated with Austin interfaith or any industry area foundation organization because we do not accept any government money. Austin interfaith is supported by its member institutions and other foundations. Now i'll have ms. Johnson speak.
>> my name is carlem johnson. I am a resident at fairway village apartments. I have been a resident at these apartments for 14 years. I am also the secretary of the fairway village tenants council association. The reason for the problems that we have right now some of the issues that we have with mold and sewage and different things like that are a lot of issues that have been going on over the years since I have been a resident there. And it has been going unattended. We have children that live in this -- in these apartments. We have 140 units. We have children that play outside. For instance, during the middle of the summer we did have a running sewage problem that was running down the sidewalk into the yard where the children live and play. We have a child that was playing in the sewage, did not know that it was raw sewage. This child was sick, got very ill and broke out into a rash. The other issue that we have with the sewage is that its constant backup inside the apartments, we have some residents that have come to me and complained about raw sewage coming up in their sinks, in their bathtubs, inside their units. And some of the units that have the sewage problem are already -- have already put in maintenance requests order for the sewage problem, but it's going unattended still. The other issues that we have there was the mold. The mold is an ongoing issue, not just only in my unit, but also other residents as well. We have some residents that have a respirator. We were without ac during the summertime, and these residents that use respirator were very ill and very sick for about a week or so. The other issues that we have going on there as well is the playground for the children. The children are playing on the playground equipment that is unhealthy. It's just been painted over. It's not something that you would want your child to go out and play on. The paint is peeling. The box sand is corroded with cat manure and different things like that. Some of the other issues that we brought to the attention of management recently was when mr. Beckio came out to fairway in July. We had a meeting in the community room. There were a lot of promises made that all the problems we have when the residents addressed their problems to him at the time of the meeting that these issues were going to be fixed and they were going to work on them. And one of the main reasons was the mold, the ac, and the sewage. And right now today we still have these same existing problems with the mold and the sewage. And we as the residents, we have a lot of residents that are here today. I don't know if they're going to speak on their behalf, but I am -- I am speaking for some of the residents that we have that are unable to speak or sometimes they're so afraid to speak.
>> thank you.
>> thank you.
>> I'm Karen popp, I'm director of low income housing association. We are a 15-year-old nonprofit organization located here in Travis County. Our mission is to help low income texans achieve the american dream of a decent affordable home in a quality neighborhood. We don't own or operate any housing. We provide information and we work with low income residents. For example, we have a website that has a housing counselor. We have over 1800 people each week, low income people, coming to our website, seeking low income housing. Three years ago residents from fairway village approached us about the upcoming purchase of that property by american housing. They were concerned with the sewer problems, the air conditioning problems, the mold problems, the hot water heater problems, things that you've been hearing about, they were concerned with the section 8 contract that their property would be kept up, and that is something the american housing has done and they were concerned with getting a good, regular, effective communication system with the management. When american housing went before the Austin housing finance corporation for bond financing to buy fairway village and another property here in Austin, the sewer problems were so widely known that gus garcia asked them what they were going to do to address the sewer problems. And they responded as they have today that they would get an engineer and they would do whatever the engineer recommended to fix the sewer problems. And I have a copy of the engineering report. And it lists 802 dollars' worth of critical problems that do not include anything to deal with the sewer problems. And so the systemic sewer problems have continued. A walk-through of the property will show numerous apartments where the bricks have been knocked out to get at the plumbing lines. There's a television report of raw sewage with toilet paper flowing across the property. This is a problem -- this problem was known to american housing at the time they purchased the property. They prmsed to fix it. And just two weeks ago two more apartments backed up and the toilet in the bathroom with raw sewage. It's not the only problem with maintenance of the property. I have building inspection reports from the city of Austin, no heat for two days, no hot water for three days, no running water for two days. American housing promises to put a learning center or a resource center in at fairway and their other properties here. There are none. And as for regular and effective communication, when southwest housing, which is the hud monitor of this property, went for their annual evaluation this year, they reported that their call center staff were never able to reach the manager on a day a complaint was received. Management responded only to calls within one business day. All other calls took three to six business days to reach management. Now american housing is coming before the county seeking more public dollars. Where does the public benefit to the residents of the five properties and the neighbors of the five properties? We support Austin interfaith's recommendations and we ask you if you will -- if any deal takes place with american housing, put into the use agreement tenant protections and we have a list of the things we'd like to see included, and make a precondition of any bond deal be that they fix the plumbing and other major problems at the properties that they already own. Thank you.
>> (indiscernible).
>> in conclusion, we ask that you suspend making decision until satisfactory repairs are made at fairway apartments and made by a certified engineer that has credibility with the county. Future proposals -- that future proposals include a tenants' protections as outlined in the handout we have prepared and we will give each of you a copy. Including Austin interfaith fought to restore dollars for low income schools where some of these schools are and communities of the proposed properties that are being -- the properties that are being proposed for purchase. We ask that you seriously reconsider any tax abatements that will hinder our future tax base that will affect education and housing issues in our communities. Thank you.
>> thank you.
>> thank you very much.
>> yes. Hello, my name is virginia. I am a resident at fairway village. I have been there since 1998. I volunteer with the residents and the residents' children. Let me start off by saying that I have a choice where I want to live, not where I have to live. It's true there have been problems at fairway village. I have something written up also, but with everything that i've heard today, it's true, we've had problems. I've been there for five years, but at the same time, if all these people were so unhappy and things were so bad, then why haven't they left? Okay? And the other thing is that everything takes time. All repairs take time. If you're a contractor, you're doing something else and you're called on a repair job, you're not going to stop what you're doing there to go. They're going to get there when they can. And the residents from this complex have that dilution that it going to be taken care of right within the next 10 minutes. Now, I like where I live. It's low income, yes. There are some of us who can afford better housing, some who can't. There are a lot of homeless people out there also. And if we're putting in low income housing, then where will we put these homeless people. Yes, the children are there, the playground. The playground is there, but I don't see very many children out there. A lot of the children play around their apartments or -- even my apartment. As for the mold and mildew, I had it also. I cleaned it up eight months ago. It's no longer there. And I'm sick. I have asthma, I have high blood pressure. So I understand they're saying that this child was sick, but I didn't get sick, I cleaned. As they said before, it's a housekeeping thing. As for the bad publicity that fair way has gotten, yes, there are some people that have pests, rodents, but that's another case that is housekeeping. If you keep your home clean, then you may have some small problems, but you're not going to have the huge gigantic problems with all the rodents and roaches and whatever else that these people are complaining about. This is my home. And I'm happy there. And whoever else -- I mean, there's a lot of people that I know that are not here today to speak up. I thank you for listening to me. Fairway is my home and I'm hoping in future years to come it will continue to be my home. And as I said, things are getting better. Thank you.
>> thank you. Yes.
>> my name is mary milam. I live in the north Austin civic association area and i'd like to reinforce some of the things that linda Moore said. I live about three blocks from the front door of wooldridge elementary school. I walked over there yesterday and asked them how many of their students are on free lunch. They have 797 students as of yesterday. They had over 630 of those are on free lunch and 70 more are on reduced price lunch. That converts to 88.8% of the wooldridge school population qualifies for free lunch or reduced price lunch. And that suggests to me that I'm surrounded by whole neighborhood of people who have low income. I don't think we need that many more because to me there are really only two kinds of people in the world. There are those who can help and those who need help. And the population of those who need help way exceeds the population that can help. You're going to have a lot of needy people whose need aren't being met and a lot of people who can help who are overwhelmed and frustrated and burned out. I also have a paper from the Texas education association website and it has a breakdown of the students who are considered disadvantaged. I don't know exactly how many criteria go into determining disadvantaged, but I'm sure income is one of them. And the elementary schools that are served by the little walnut creek library area, wooldridge school has 79%, barrington has 77.6. Graham has 65.5, mcbee has 76.3. Walnut creek has 78.1 and cook elementary has 68.7. That suggests to me that we already have as many low income people in this neighborhood as we can do justice to. And I ask that you look for some other place to locate these apartments. Tarry town comes to mind, call westlake, see if they'd like to have some. We already have a lot of people whose needs are not being met. And we don't -- we just can't handle any more. Thank you.
>> thank you.
>> my name is betty usri. And I have been a resident of (indiscernible) apartments for 17 years. I have been president of the tenant council association since 1994. And I have been serving as part of the board of directors of american housing foundation for one year. I have a great joy in the position that I hold. Let me share with you some of the things we are doing at el ridge. When I say we are speaking of the el ridge residents, american housing foundation, Austin tenant council, and the management of el ridge apartments, and I work very closely with them. We have a walking program for all ages. We hold after school programs for the children to give school supplies to those in need. We have spring break parties for all ages and we can hold these -- sometimes we hold them on a weekly basis for them to keep the children off the streets. We have clothes giveaway three times a year. We have a halloween party and costume contest every year for the children. We hold thanksgiving and christmas dinners for the whole complex. A lot of the elderly cannot attend, so we have a group that will take them their dinner. This is very important because some of our elderly don't have families, and you show up with a dinner and a gift and it's very exciting to them. We are very soon -- we are organizing a food bank for working mothers and elderly who just can't make it a full month on their income. What is holding us back from organizing the food bank is space. For the different need and safety of all our residents, we have selected (indiscernible) for our community. And these responsibilities are to watch over the buildings and report to the office any problem. There are 14 buildings at elmer ridge and there are 67 captains. One captain to each building. Seven captains. It is very important for us to receive these funds to better our community, to make this a more beautiful place to live and to have a community room for our residents. I hope to live to see this take place, not only for me, but I represent all the families and elders of the elmer ridge community. Thank you.
>> thank you.
>> yes.
>> hi. I'm a resident of president clinton tow creek apartments. And I came here today to just say a few words about how I -- I really like the apartment complex I live in. It's well lit, well kept. I feel safe walking around there at night, even though it's on the east side. And the management staff is great there. Every time I have a need, which is rare because I guess their preventive maintenance must be pretty good because whenever we do have a need that maintenance staff is there the very next day taking care of our problems. And I think regardless of who owns our property, our management staff would make sure that our needs are taken care of in that community. And furthermore, I have a little bit more insight having worked at an apartment community, not for any of these people, but previously on the east side a few years ago. I worked for a property that had about 280 apartments, 792 individual leases. It paid about half a million dollars in property taxes every year. They always came to Austin every year to fight that. But this bond I think is -- having come in here not knowing anything about what's going on here today, I realize this bond is pretty nose for anyone trying to buy a property because you can't keep your head above water. The property that I used to work at, they had to stop paying dividends to their investors just to keep the property running for the simple fact that, you know, resident retention was so low and not just resident retention, but traffic in general because the economy is to bad in Austin right now. And Austin has, you -- as you know, everyone knows, some of the highest property taxes in the united states. And I understand they might have some what of an impact on elementary schools, but there was a bond passed just a few years ago to build in -- in del valle to build new schools, which I know, if I'm not mistaken, we still have that tax increase in effect in the del valle area. Which would be good if local grocery stores, convenience stores are paying a higher tax which is going to the elementary schools. And I can't imagine improving this property, which would be bring in more people, inviting more people to the east side and to our area, the more people you have in there the more money they're going to spend in our money area and contribute money to the local elementary schools. And furthermore, it's not going to affect acc because when you live in del valle, you have to pay out of district tuition regardless of anywhere that you live in del valle. For the simple fact that del valle -- so i've heard, will not contribute enough money to a.c.c. For them to give the del valle -- anyone in the del valle district in-district tuition. So i've lived in that area for quite a long time, and I can't even go to the local community college there without having to pay out of district tuition. And so I can't see how this would affect a.c.c. But that's really all I have to say at the moment.
>> could I get your name, ma'am. Hari garjiel.
>> thank you. My name is daniel with the american housing foundation. I have a very brief comment to make. It's regarding some of the prior testimony regarding the impact of this transaction on the two different school districts. Having dealt with that issue on prior transactions, I had a conversation with who is perceived to be probably the state expert regarding the impact on school finances. And the gentleman's name is joe withowski. He's the Commissioner of school finance and fiscal analysis for the Texas education agency, and he has agreed to be available to answer any questions that the court may have. Regarding the ultimate impact, whether it's property rich district versus property poor districts where they receive a reimbursement from the state starting in the second year based on their mno. So i'd just throw that information out for y'all's benefit.
>> thank you.
>> two seats available. Yes.
>> I'm sorry, my name is (indiscernible) crutcher and I'm a tenant at awd bon square apartments. And I just wanted to I guess put in my two cents' worth, letting y'all know that audobon, having lived in some of the other complexes in Austin, audobon by far meets all qualifications I could ever imagine for a complex. Their management staff is up to date a everything. They're always real quick to respond to the tenants' request. As with the maintenance people, you can put in a request and if it's not done the next day, it's done the same day you put in the request. And I just have to compliment them on the wonderful job they do with all their communities. I've been in a bind at one point where something had gone wrong and I was able to call one of the managers from one of the other complexes to help me out, and it was all in the same community. That's all i've got to say.
>> thank you.
>> my name is dolores. I live at the fairway village apartments. And we've had a lot of issues in fairway about the lighting outside, residents complaining about the ground keeping, the apartments themselves,ed mold and everything. I've also brought in someone to investigate this, and they did, which I thank them very much. But since i've seen all this, a lot has gotten accomplished to me. In many ways. But the problem is right now, american housing really don't have the money to do it, then they won't get it done. I'm sorry, but I see two issues here, them trying, no money. We're residents that live there. We need support to get these apartments fixed. We also need better security as far as a.p.d. We need better grounds as far as for the children there where we live at. We can't have all that if we don't have the proper management. And the money. Do you know what I'm saying? We need something done today as far as helping the residents have a better home and living in a cleaner place. And if american housing can't get this money, which they're trying, then we're going to lose the little bit that we poor residents are going to be living in. And we don't want to lose what we have, but like I said, I brought it to investigation. They're trying. And I want it cleaned up too, yes, but the problem is we need someone in there that's really gonna support the residents in fair way. I don't know what it's going to be. It's a lot. But the money does need to be in there to help clean up the place. If it has to be every pipe in that ground, every building torn down, redone. I would love for it to stay as low income for the families, you know, and for them to go to the schools that they belong to. And that's my heart right there. Whatever it's going to take, we need this. But the money needs to be there. We need the support from the county Commissioners to help us with this.
>> thank you. Back again, mr. Davis?
>> yes, sir, I'm back again. I'd just like to express a couple of things that we have restructured after the but the money needs to be know,r them to go to the schools that they belong to. And that's my heart right there. Whatever it's going to take, going to be living in. And we don't want to lose what we have, but like I said, I brought it to investigation. They're trying. And I want it cleaned up too, yes, but the problem is we need someone in there that's really gonna support the residents in fair way. I don't know what it's going to be. It's a lot. But the money does need to be in there to help clean up the place. If it has to be every pipe in that ground, every building torn down, redone. I would love for it to stay as low income for the families, you know, and for them to go to the schools that they belong to. And that's my heart right there. Whatever it's going to take, we need this. But the money needs to be there. We need the support from the county Commissioners to help us with this.
>> thank you. Back again, mr. Davis?
>> yes, sir, I'm back again. I'd just like to express a couple of things that we have restructured after the last meeting that we had. We had listened to the comments that have come forward from some of the other community participants and have adjusted our resident services budget. And basically what we're looking to do at this point in time is to escrow one million dollars in a resident services escrow, and that would be an up front contribution from american housing foundation. In addition to that, we're looking at basically $1.4 million' worth of tax relieve. -- relief. We will also contribute $400,000 on an annual basis for resident services. We are looking to reduce rents to the tune of $328,000. And we will also add three percent of the units for special needs, such as emergency needs, spousal or child abuse, foster care, teachers, policemen, those kind of special situations. An annual capital improvement budget of $544,000,250. We are looking to render a total public benefit package of $2.1 million. We are looking at total property tax relief of $1.4 million. So we're having a total positive public benefit of over $700,000. I think at this point we have come to realize -- and some of the participants in the advocate community I have worked with in the past. And mainly mr. Monroe. And I know he does an excellent job of providing resident services. We are also extending to mr. Monroe the opportunity to work with us in ensuring proper resident services at these five communities.
>> thank you.
>> questions? Thank you, mr. Davis.
>> can you reduce that to a written form, mr. Davis? That would be helpful.
>> I can make copies for all of you, yes.
>> hi, my name is crystal (indiscernible). I'm the community director at meridian, which is a publicly owned, funded and management provided by american foundation. I want to imagine yourself turning 18 and having to leave the home or place that you've lived in for the last six months or perhaps two years. You've packed your bags, they may be plastic bags, maybe you have a suitcase, with only your clothes. That's the only articles that you have. Your foster family says good-bye and wishes you the best of luck. You are now homeless. You do not have a job, or if you do, you are only make minimum wage and bring home about $700 a month. You have no real family to go home to or you choose not to because you want to make a better life for yourself. You've already listed in the apartment guides and the apartments that are available are so high it would take more than half your paycheck each month. How will you pay your bills? How will you afford someplace to live? How will you afford household items because you have none, not each a bed? How do you save for a car? How are you going to have enough money for food? Who will guide you in the right direction and give you the advice when needed? Now think about this. Tomorrow you turn 18 and you're excited. You have found your new home at meridian, your new home. Rent is only 250 a month and your home is furnished from the bed down to the silverware if you need it. You have money to save for a car, you have money to purchase your own furniture and you have money for food. And just in case you don't have enough money for food, they have a food pantry also. You also can attend college, you can -- you have support 24 hours a day. There is someone there to help you meet your needs and give you the little push you need every now and then when you need it. American housing foundation has provided 34 units for this use for those who have already transitioned out of foster care. Kids who need a safe home to learn and grow to be responsible adults. I know firsthand. I came from foster carite years ago with no family and no place to go. I experienced the struggle of becoming a successful, independent adult. This housing program is also available for the adults up to 28 years of age who need a new place to start their home. I'm so thankful for american housing foundation for providing me with a home and wonderful job and for working so hard to ensure that these youth have the opportunity to become independent, successful adults themselves. I just wanted to say my speech to you because it's so true in arm ril low and all over that these children don't have anywhere to go, and even the ones that get out on their feet after they turn 18, they fall down or they need a new start and they don't have families to go home to. American housing foundation has provided this. It's been a need for a long time now. That's just one of the things that they're doing with the tax dollars that they save. And it's just very important.
>> is meridian located in Travis County?
>> no, it's located in amarillo.
>> okay. Thank you. These seats available. Last call. Yes, sir?
>> judge, members of the commission, my name is fred fuekes. I am an attorney with legal aid speaking on my own behalf today. I've worked with low income and moderate income tenants for a number of years. As they say, the devil is in the details, and I know if this is approved that there would be a use agreement that the county would sign with american housing foundation, and the Commissioner Gomez earlier expressed the concern that tenants at low -- middle income properties and also well to do properties often have concerns about retaliation. That is a very real concern. What I would ask that you do is in any use agreement that would be signed with american housing foundation which restricts the rents that they also agree to the following conditions: number one, that they would not refuse to accept as a tenant anyone with a section 8 voucher. As you know now, landlords are free to refuse to accept a tenant with section 8 vouchers. That would still give them the right to screen tenants, they simply couldn't say as part of this, well, we're not going to lease to anyone who has a section 8 voucher. Number 2, regardless of whether they use a Texas apartment association lease or Texas association of realtors lease on or their own lease, that they have a simple one-half page 8 den dumb that incorporates several tenant protections. Number one, that the tenant may not be evicted except for a serious or repeated violation of the terms of the lease. Number two, that late charges for late payment of the rent would be limited so that no tenant would ever have to pay a late charge to exceed five percent of the rent amount. We often see ridiculous late charges which when compounded upon day after day and month after month puts the tenant in an impossible situation. Number three, that they would be obligated as part of the use agreement to accept rent payments or utility payments from third-party providers such as Travis County, caritas and churches. We often see landlords who when someone has lost a job and then obtains assistance from Travis County where there's often a two-week to dlirt-day delay in delivering payment for the landlord, the landlord refuses to accept the payment and proceeds with eviction. Number four, that tenants who become delinquent in rent would be given a 10-day cure period. The common-law of this state recognized a cure period, but none of the leases used by the apartment association or by the association of realtors provide for a cure period. So this provides that if a tenant becomes delinquent in rent that before the landlord could proceed with eviction that the landlord would give the tenant 10 days to pay that delinquent rent. Finally and also importantly, that an eviction lawsuit is filed against the tenant at one of the properties for nonpayment of rent that so long as the tenant comes up with the rent, the late charges and the court cost before a final writ of possession is executed that american housing foundation would have to accept that and not proceed with eviction. I had a call from a woman just before I came over here today. She was the victim of a hit and run accident, lost her job, was facing eviction now because she can't come up with the monthly is rent of $699. And she's hoping and praying that the family members are going to be able to help her and that the landlord will in fact accept the rent even though there's a court filed eviction. If you build it into the use agreement, then they would be required to accept it: finally as part of the use agreement that they would agree that they would maintain the property in decent, safe and santory condition and good repair and condition. I assume that's already going to be part of it. And as the last part of a use agreement, that this use agreement be subject to enforcement by any low income tenant or other possible occupant at any of those properties and provide for the protection such as specific performance or an injunction and that if they're successful in enfor they're successful in enforing the lease agreement tht they could obtain attorney's fees. So as they say, the devil is in the detail. And if the court in this particular case decides to endorse this proposal on whatever conditions it might impose, I would ask that it instruct its legal staff to include in the use agreement that american housing foundation would sign these particular restrictions that would provide some tenant protections. Thank you very much.
>> what would the protection be for the tenant if there was retaliation?
>> the tenant then would have to -- have to defend on the basis that it's not a serious lease violation on the tenant's part and that it's retaliation by the landlord and the court would have to decide, but the tenant still has to in fact deal with the lawsuit.
>>
>> [one moment, please, for change in captioners]
>>
>> ... Both of those apartments, they gave them a key to use for bathing and to use the restroom. I mean, that's two different, you know, residents to use one apartment. That was the backup. I myself called mr. Beccio, I called him about it. He couldn't get ahold of management or maintenance. Santa maria came to take care of that problem. Up to today, still not finished because I myself invite you to go see apartment 173. It's not even fixed. It's not, you know, it's messed up. The [indiscernible] rock and stuff, some of the pipes in there, the mold in that closet, too, he was even very upset because he couldn't find management or get ahold of management or maintenance people.
>> doesn't the property manager live there --
>> , neither does the maintenance. I called the answering service, they couldn't get ahold of them, saying they tried call dhem, get ahold of them. They couldn't, I called them myself. So julie the apartment manager from santa maria got ahold of her maintenance people and helmrich, they were the one that's Saturday and Sunday went to do the cleanup, helped pick up and fixed part of whatever they could until Monday. The plumbers went up there and mixed it.
>> okay.
>> you have lived there how long?
>> oh, i've lived there for more than about 20 years. We have had a lot of different robs there. Problems there.
>> thanks.
>> yes, sir.
>> my name is gary bettingfield, period of time of the [papers shuffling - audio interference] housing finance corporation. I live in a small town east of amarillo, Texas called panhandle Texas, a community of about 2500 people. The housing finance corporation that I'm president of is -- is comprised of the 22 of the top counties plus two -- two cities in that area. We were formed in 1981 for the purpose of providing low and moderate income housing at a higher quality. We've financed several multi-family and single family issues during that time. The executive board consists of six people, four of which including myself have been on the board since 1981, the other two have got over 10 years experience. Of the 24 members of our -- of our board, every -- each entity has a member, we have about 10 county judges. They are kind of critical. They are not -- they are not easy to -- to persuade to anything. In 1999, american housing approached us to buy four existing units in the amarillo area. They were good units. They needed little rehab. We had -- we had intent and several discussions about the same things you all are talking about here. It was finally determined that we would issue the bond for the projects. We've had no compliance problems, no problems with programs that were not facilitated that were supposed to be done. In short the programs worked very smooth. In 2002, they came back to us with a new project in northwest amarillo. This is an area where the medical center is, a lot of new construction there and new type of housing. But there was really no place for any lower moderate income housing for the poem who worked in that area -- for the people who worked this that area. They built and have rented a -- a very nice property there. It is going very well, we again have no compliance or problems with management. We currently are about to issue bonds, they are about to start construction on a project in southeast amarillo. This is an older area of town, it is strictly moderate and low income. Haven't been any new apartment complexes built there since the '70's. This is going to be a -- in our mind, it's really going to be a gem, it's going to be the same exact property almost to a detail that they built in northwest amarillo in southeast amarillo. And again we are -- we have -- my testimony here is that -- in the four years that we have been associated with them, our compliance and management problems have been nil and we are -- we are happy that we made the decision to -- to do -- to partner with american housing because it -- it has furthered our mission statement for low to moderate income housing.
>> how did the affect the taxing jurisdiction?
>> pardon me?
>> how did it affect the taxing jurisdiction.
>> we have had no comments or complaints from our taxing entities. These last two projects are not taxable. They are -- but we have not -- I'm certain there's -- the same concerns are --
>> I guess the question is did it take property off the tax rolls.
>> yes, sir, yes, sir. It did.
>> do you know the amount?
>> I don't know the amount. I -- I don't know the amount or the amount of the tax -- we have issued about $45 million worth of bonds, we've had $45 million worth of projects. I'm certain it's not union unanimous in the city that everybody is for it. But we have not received any communication who has felt like the good far outweigh the tax -- abatement that was done. My name is steve dower, a senior vice-president and counsel of baptist community services also of amarillo, Texas. We are a faith based charitable organization that has two primary pirps or missions -- pumps or missions. Number one is health care if -- we own one-half of saint anthony's which is the largest hospital system in the panhandle region. Serves the five-state area. More directly, we also operate senior housing which includes affordable housing for people in the panhandle and south plains area. On our campus near downtown in amarillo any given day, we service and take care of some 575 residents. On our park central campus. Approximately four years ago we started looking at the fact that there was a significant need for senior affordable housing in amarillo, Texas, a very serious need. We started looking around for who would make a good partner that could help us because we really had no background in -- and what is truly a very complicated and difficult time of housing program, which is affordable housing in the state of Texas, and we started investigating various people that knew how to deal with affordable housing in our area and american housing foundation came to the forefront. We had seen projects that they had taken on many years ago. And see how they had rehabed them. See how they -- noticed how they had operated them. And also noticed that they continued to develop them and expand them. So approximately in -- in a little before the year 2000, we -- we had discussions with american housing a senior affordable housing campus near downtown amarillo. This project in retrospect was a pretty significant project and one that was a real learning experience for me. Not only do we build a new 114 three story new apartment complex on the southern portion of our campus, but we rehabed a 75-year-old historic building in downtown amarillo. On our campus. Which w the first I would say premiere apartment building in amarillo, Texas. It was built in 1927. That project was a significant project. If we had not had the affordable housing and tax credits and financing that goes with that we could never have done it. But we converted that 75-year-old building into 42 brand new apartments with the 114 new apartments just across the street on our campus, that now serves 156 people in the amarillo area and I would point out that it was filled in less than one year. We started taking care of seniors, in particular looking at the affordable housing. Once we did this project, we also talked with american housing about other projects and we've done projects with them in lubbock, Texas, 168 units of affordable housing, down in the lubbock or northwest part of lubbock, Texas. It filled up in less than a year, both of these projects stay filled at almost 100% occupancy. We then began to look at the need for affordable housing in amarillo, Texas. Which included not only seniors, but people of all ages. And we have partnered with american housing foundation on the two projects you heard this gentleman talk about. Particularly the one in northwest amarillo, we felt their expertise in running these types of -- of apartment complexes more than justified putting 184 units there with the help of tax credits. This was very important to us because many of the people that are filling those departments work at baptist saint anthony's health system and cannot afford the housing costs in that region to be able to live close to the places where they work. So I don't want to take a lot of your time today because I know that you've heard a lot of different things much I just wants to say from our standpoint as a faith based organization that is in -- that as unof its primary missions senior and affordable housing, we have found american housing foundation to be a good partner, to deliver on what they say they are going to do and work with us no matter how difficult projects can be. I guarantee you rehabing a 75-year-old building is about as difficult as I ever want to do again. To answer quickly your question about taking the properties off the tax roll, we worked closely with the potter randall appraisal district. We are not a chodo, american housing is, through that exemption these properties have been taken off the tax rolls and we have not had any significant impact or discussions with anybody from any of the various taxing authorities about this. This is viewed -- the city of amarillo is very excited about this. As was pointed out, this is going to be really excellent housing and some of the first new construction in that area in a long time.
>> I don't know about the taxings jurisdictions in amarillo, but I do know we have some here that have voiced major concerns about being taken off the tax rolls. I don't think anyone here is opposed to affordable housing. I know I'm a big strong proponent, have been a big strong proponent of affordable housing, to come up with creative ways to ensure that we get there. Again there is some impacts here, we are talking about ongoing impacts. We may have some one-time benefit, but we got ongoing impacts if you take these prolts off the tax rolls and so that's my concern. Because somebody out there is going have to make up the difference, that's the taxpayer, taxpayer is going to have to make up the difference, we are talking about ongoing. It's not this $1.4 million is just evaporating just a one-time thing. We are talking about $1.4 million next year, maybe next year, it won't be there anymore. Who makes up the difference? That's the question that I keep asking, who makes up the difference for the shortages as far as the erosion in the tax base? It's a tax [indiscernible]
>> yes, sir, I agree. All I can tell you is from your experience the -- from our experience the projects we took off on our project were approximately $11 million. And the projects that are going off for the affordable housing with different areas are each I believe somewhere between 6 to $9 million per project. Those are ongoing things and it's a balancing. Each county is different, everybody has got to deal with that. I will say this, though, it's important from the standpoint of the tax exemption because it's been stated today, at least from our standpoint, and in looking at trying to make these things work, this exemption is very important to develop the type of projects that we have developed in amarillo, Texas. It was crucial to them, we couldn't have done it without them.
>> I appreciate your comments and you coming over from amarillo.
>> and we just wanted to let you know -- [multiple voices]
>> thank you, appreciate it.
>> the next two speakers will have up to four minutes each, they will be timed, our final two today. We have another item that could take many, many minutes. My question to the court of mr. Bluntly be after these two speakers -- whether bunt will be after these two speakers, it is the schedule we talked about last week, mr. Blunt still here. Make sure we cut your clock off -- [laughter]
>> yes, sir.
>>
>> in the middle. Can I give you the opportunity to look at pictures.
>> [multiple voices]
>> will we have time to look at the video as well.
>> we can take time if you think we need to.
>> I think we probably need to.
>> my name is anthony penning ton, i've had the pleasure of working with american housing foundation for the last two and a half years in amarillo on a couple of different properties there in our city. I found them to be very cooperative in some of the events that we have response are sored for the -- sponsored for the residents. Block parties with health care professionals there for vaccinations for the children, also blood pressure checkups for the elderly, free food, live bands, also in the summertime we do vacation bible school for children, kid's clubs, sports camps, a lot of different activities that help the children have something to do in a safe place where they can feel secure. And to also support community. Some of the things that we have planned for the future, working with the american housing foundation, is a weekly get togethers for the elderly. Regular meals for them together so they can get to know each other and build community. Feel better about their neighborhood. Also we hope to get a program going to teach some of the young teenagers there, young women there how to do home making, things such as that so they can chair for their children in a little bit better. Other things we are hoping to get going, also, is a program that will provide an afternoon out for the single moms that just need a little break from time to time from the stress of the week. We have right now after school programs for children, they can have a safe place to come and learn moral values and give some direction. We also provide some tutoring services, if folks have trouble with reading skills and want to enhance their reading skills. We also can provide some support in those areas. We have found the american housing foundation very cooperative in working with us and providing space and doing everything that they can with resources, so it's been a very good win-win relationship with us working with american housing foundation. Thank you for your time.
>> thank you.
>> thank you very much.
>> my name is waller marrow, I will be as brief as possible.
>> four minutes. By the way, you spoke eloquently last Tuesday, we remember everything you said. So ...
>> so I can't -- will not repeat myself. [laughter]
>> go ahead. The four minutes starts right now.
>> a number of key points, you have heard today basically a threat that they can finance this privately if you don't do this deal. I think that if they could finance this privately, they wouldn't go through the pain and suffering of being here. They have been working on this for months, months, months and -- come to you now at the October hour to try to get this done at the last two months of the year. Obviously taxes and bonds give them additional money in the deal. If you -- if you do not facilitate the transaction then, if you do facilitate the transaction then it happens. You can see what the impact is going to be. Whereas if you let them try to put something together here at the end of the year, there's a possibility that won't happen and that impact won't hit the school district. And now we have a new deal, just presented today, that nobody has had a chance to look at that says we have increased the benefits, we have doubled the social services, they will work with us to -- to provide those, which is not something that we have done and would really give consideration. There's a lot of facts about this deal that have been brought to you at a very late hour to evaluate. They have an independent appraisal, but appraisals don't always -- you can get multiple appraisals and get different answers. They are paying $55,000 a unit. Which is a pretty good deal right now. Pretty high. They are counting in their public benefit replacement reserves for capital work at their properties. Well, I don't see how that's a public benefit. If these remain private properties, a responsible landlord should pay taxes and put money into doing capital repairs. Mr. Davis did travel to dallas, saw some properties that were finance understand a similar transaction with the same seller and the same property management company and they were nice properties before this transaction was done. They paid their taxes. L.o. And behold they are still nice properties now, they may have slightly lower rents, they are doing more crime prevention work but they don't pay taxes. We at foundation communities, since I spoke last week, there have been lots of questions about our credibility, who we are, what we do. We are a member of the apartment association. We're also united way agency. We have been a chodo since our existence. It's a h.u.d. Definition groups that involve at least a third of their board as residents of their properties and care about community development. Not just doing an affordable housing deal, but how that affects the benefits of the entire community. We have never bought a property with the intention of doing the transaction so that we could take it off the property tax rolls. I didn't go into detail about this last week because it wasn't the central issue. But of the nine properties we own in Austin, two paid full taxes, one the garden terrace sro is serving the homeless so it would be exempt. Five are property tax exempt. For the value of the taxes that we forego, we provide almost dollar for dollar in social service and educational programs at those properties. Our rents are over a million below market rents. And we spend double what a typical owner does, about $680 a year in capital repairs per units. We're proud of the work that we do, we feel like we are accountable for the tax exemption that we are able to benefit from on some properties. That's an exemption that came about in 1997. I really led the effort at the capitol along with others to close this loophole because of the kind of impact that it was having around the state. I think Commissioner Davis asked about. And the records are hard to get because you have to go appraisal district by appraisal district. But the loophole has been used to the tune of about a billion dollars of property values in the state.
>> a billion.
>> a billion.
>> dollars?
>> that's through 2002, I think it's $35 million in local school impact. Tarrant county has felt it worse than anybody. They've had about 170 million in property value roll off their rolls alone. Unfortunately we couldn't get the new bill that would affect this exemption to take effect immediately and --
>> 30 seconds.
>> everything that I have told you about tax values, benefits that we -- something that we have audited every year and provide to the public. That's all.
>> thank you.
>> mr. Blunt, please come forward.
>> you gave us the schedule last week. Remind us of what it is.
>> the current financing schedule is calling for a closing around November 20th, which would require submission of the basic documents, material filed to the attorney general's office, 12 business days before that date, so around the end of -- of this week, first part of next week. The --
>> do we have time to take another week?
>> yes, sir.
>> does the court mind taking over another week and mulling over the new information? What I will do between now and then is visit fairway myself, I will look at the 12 minute take place between now and next Tuesday. But when I walked in today, I think that I was pretty much decided in view of the amendment to the proposal, though, I'm really not sure in view of today's testimony. So I would like to take another week. But if a majority of the court is decided --
>> I -- judge, I'm just one person on this court.
>> I'm certainly inclined to give you a week [multiple voices]
>> as well.
>> I will give you a week. [multiple voices]
>> we will just do it next week, we will do something new and different. We will schedule this item. Okay the ones that came here from amarillo, do you all come the night before or the morning of the discussion?
>> [inaudible - no mic]
>> as we may not need you next week anyway. When are you leaving town this time?
>> [inaudible - no mic]
>> you are leaving today, though?
>> [inaudible - no mic] I'm going to need to get in touch with somebody on Friday. I suggest that we schedule this for 9:00 Monday morning, if they are not coming in anyway, Monday morning would be good. What would be the drop dead deadline? What would do is pay additional due diligence in light of today's discussion, amended proposal, other information. In my view those wrap around services are power. Mr. Davis, you have relatives in houston? They may teed to get down there for us between now and Tuesday and check a couple of them out. Use this time, that's fine.
>> take that tape, circulate it --
>> I'm running out of time today, y'all.
>> there's another real big item, though.
>> if we don't get to see the tape, I think the public in Austin, Texas, has seen the tape. That's what's really important to me. And the other thing is the -- even if we put together a deal, what -- what assurances do we have that promises made to us will be fulfilled, promises were made to the city of Austin. Those were not fulfilled. Again, I don't --
>> I think that's a good question. What kinds of things could be put into these documents that we would have more of a hammer to ensure that these kinds of things --
>> but see that doesn't satisfy me. We are throwing away affordable -- the term affordable housing, throwing it around as if this court has never supported affordable housing. We are all for affordable housing. And but this is kind of like a last minute deal and while we set up here -- sit up here and talk about all of the problems that we see with this, they are sitting out there coming up with ways to respond to it so that the dealings through. That's not, you know, real -- deal goes through, that's not really ethical in my mind.
>> I would appreciate the additional week for us to be able to --
>> [multiple voices]
>> digest everything that we have gotten here, for us to evaluate the -- the strength in the offer that we got, wherever it lands, are you saying it's going to be 1:30 as opposed to 9:00.
>> we will do it at 1:30 if it will accommodate --
>> take another week?
>> yes, sir.
>> american housing foundation, we need to do this and at the same time we understand the position we put you in. Protect yourself I guess is the only advice that we can get.
>> Commissioner Gomez, what did you want to do --
>> it's 4:00. I can't do this.
>> I think it's an important enough issue.
>> we will show it next week. [multiple voices]
>> it's in the media room.
>> I would like to look at it between now and then, we'll show you, though, at 1:30.
>> that works, that's fine.
>> be ready to act on it. If it -- see how much we can get done between now and then.
>> I move that the public hearing be closed.
>> appreciate you all's input, also your participation, patience, et cetera. All in favor of closing the public hearing. That passes by unanimous vote. In view of the action we have just taken by consensus on reposting item no. B, we will have it back on the court's agenda next week. If I can find my schedule. Therefore --
>> move we adjourn the housing --
>> question before we adjourn.
>> yes. I was asked by one of my office members to be on -- on be on a holistic health committee, is that something that we have to do in court? John would like to be on that.
>> what now? (interference with noise from audience).
>> motion to adjourn the Travis County housing finance corporation, all in favor? That passes by unanimous vote.
Last Modified: Wednesday, October 28, 2003 7:52 AM