Travis County Commissioners Court
August 17, 2004
Housing Finance Corporation
Let's call to order the Travis County housing finance corporation. Are you ready with that item, john, the wellness fair? Let's come back to that one. 2. Consider approval of a plat fee reimbursement to Travis County and bell-nash/rathgeber joint venture for the waiver of subdivision fees for phase two of a mixed-income, residential subdivision known as briarcreek.
>> good afternoon, I’m harvey Davis, manager for the corporation. As you know, the -- the corporation has a -- has a flat fee reimbursement policy. This policy allows a developer of a subdivision to be reimbursed their plat fee if they sell 40% or more of their residents -- of their homes to home buyers whose income is less than 80% of the Austin area median income. Currently, we have -- we have three of these contracts that have -- that have been executed, all with the same developer. And this -- so -- so once a contract is executed, the developer has two years to -- to sell the houses and supply the -- the back -- the documentation to show that they have sold the homes to -- to the -- to the residents at the income levels. This particular contract was executed on July 9th, 2002. And before July 9th, 2004, they did bring documentation top my office to -- to show that they had sold homes to the proper residents. The -- this subdivision has 161 lots. They provided documentation that showed that 34 of the lots were sold to home buyers at 80% or less of the Austin area median income. And that -- that results in a -- in the percent of 21.12% were sold to those residents. According to the policy, they would qualify for a -- for a reimbursement of 50% of their plat fee. The plat fee on this subdivision was 14,806.59. So I am recommending that the board approve a payment of 7,403.30. The payment mechanically would go to Travis County because the developer has posted a bond for the plat fee and so the funds would go to the t.n.r. Department and they would execute the bond.
>> do you know whether or not this particular subdivision is going to -- it hasn't reached its stage of its complete buildout and I know [indiscernible] before that, what we are doing, making sure that happen. The developer will continue the program as such with the rest of the buildout, of those lots, at the brier creek subdivision?
>> well, the -- according to the information they provided me, they had sold 150 homes in the subdivisions, so it was pretty much built out. They got documentation on 60, 60 of the 150. So they had some difficulties or issues within their company in -- in being organized enough to -- to have -- to secure that documentation. So I think that's really one of the main reasons they were not able to provide the documentation to reach the 40% threshold amount.
>> I don't see a problem with it. I don't know if the other board members -- if they have problems, but I would move approval of it.
>> discussion.
>> this is consistent with our agreement, right?
>> yes, sir, it is.
>> yeah, it is, judge.
>> all in favor? That passes by unanimous vote. 3. Consider and take jo appropriate action on request for assistance for Austin habitat for humanit y. Are we supposed to do a little cash flow analysis of the housing finance corporation?
>> well, I have done a little bit of cash flow analysis. I think on this item you had -- the board had asked for information about the contribution that the city had made to the -- to Austin habitat and they provided that information which is -- which was -- distributed as additional backup to your information.
>> [indiscernible]
>> would you like me to -- to talk about --
>> highlights there?
>> uh-huh.
>> get the highlights for me?
>> highlights of --
>> of what the city is contributing?
>> contributions from the city?
>> I think it would be -- I think the executive director could better address that question.
>> if I understand the question, judge. You are wanting to know highlights in terms of our support received from the city of Austin. And we have been able to receive funds, we have provided documentation of funds we received since 1999. In -- all except for one year we had an increase in funding provided by the city to support habitat's efforts. Most of this support was provided to purchase land. In this current year we received a commitment from the city to help us purchase land and provide infrastructure for some properties. The total value of that is -- is $346,299. In terms of the support received from the city.
>> that's for 2004.
>> that's 2004.
>> okay. Questions? I didn't necessarily ask for -- but the question was asked. Any follow-up questions.
>> I think the questions are more cash flow for the corporation than --
>> the -- I do recall that councilmember dunkerly, after the habitat cup tournament, fundraiser, a figure of about that, I think.
>> correct.
>> but the other issue that we had was cash availability in the housing finance corporation account. I guess now if we can project that over the next 12 months.
>> I can -- I can give you -- I have provided some information. In my opinion the -- the excess funds over the next two months, assuming that -- that no bond -- no additional bonds are issued, is -- is about $50,000.
>> so there's -- there's not -- there's not a lot of money there. And I would -- I would estimate that in -- in years beyond 2005, that -- that the 50,000 is -- is probably a pretty good figure. Again, assuming that no new bonds are issued. The corporation has -- has cash flow annually of about 150,000 from the annual fees. The -- it does have certain fixed costs that take up about half of that. You know a commitment could be made of the $50,000 and -- and they could have first call on -- you know, if we issue additional bonds and more income comes in, and -- than some -- than some -- then some priority could be given to this organization.
>> okay. Well, I was hoping that we could get up to the [indiscernible] hundred thousand dollars at least. Maybe it's better to put this on hold for a month or son see what develops. It's possible I guess to get other grant funds.
>> yeah.
>> to match some kind of seed money, there are opportunities like that available.
>> right.
>> that information that cliff just give you, tell us that.
>> in front of everybody.
>> cliff suggested that -- gave the idea that the lottery is coming up.
>> not that lottery, a different lottery. [laughter]
>> we wouldn't want folks to think that we are playing mega millions here [laughter] [multiple voices]
>> the first part of October, how much interest there was in the lottery. This past year the corporation issue had only closed on one bond issue. We had three people that -- that applied and went -- in winning the lottery. Only one out of there were able to close. The other one did get out. Two did get allocations, but were not able to close because of the difficult market in Austin.
>> well, my guess is that in the charter of the segment of purpose for the housing finance corporation there is something to the effect of promoting home ownership by low to moderate income families in Travis County, is there not? I know in the past we have done a pretty good job of transferring money from the corporation to the general fund, which has helped Travis County residents in general. But --
>> yes, sir, that's the case. That's also the case in the the housing finance corporation act. So -- so I can agree with that.
>> my thinking has been at some point if we could focus a little bit more on like direct housing assistance, I would feel better. But not that anything is wrong with what we have done, I think this is just an opportunity for us to see homes actually being constructed and people who otherwise may not be able to become owners become open owner and see Travis County's tax base expanding at the same time, it's kind of like a win-win situation.
>> this last year harvey gave us a thing that we didn't transfer anything from the housing finance into the general fund. It only came from health facilities. What are the encumbrances that speak to what is said, he have $25,000 for the tax exempt housing bonds. We have the plat reimbursement policy that we just triggered, another good thing happening out of that. Harvey, we only have one more year with any baby can?
>> that's right.
>> so does that slot open up after next year, is it really based on what moneys were there before --
>> purely based on what moneys was there before.
>> wanted to at least ask the question, see if anything would open up there.
>> do we have a net 50,000, or 50,000 plus all of these contingencies against it.
>> no, this is a net [multiple voices]
>> already taken out.
>> definitely.
>> we had talked to harvey about whether or not there would be anything that could come from health finance corporation -- [indiscernible]
>> judge, would there be any objections if we could go ahead and allow to -- they need to get that $100,000, I think that's a really good point. If we have that money on the table now, $50,000, the net, grant that, and then look for ways to get that other $50,000? Within a month's time. Is that something that may be appropriate.
>> is 50,000 all we have but do we have like 60,000, 50 available? We need a little bit available.
>> a little cushion there.
>> yeah.
>> yes, that is leaving a cushion, yes, leaving a cushion of around 100. So --
>> the other opportunity is if you want to just put this on hold for about four to six weeks, we will know what's going on with the housing lottery, which could give us a sense of whether it really is going to be 50 or there could be the potential of more activity going on --
>> the timing on that, the lottery will actually be the end of October, the applications will be due around October 20th. We will know timing wise, we will know by mid October if we are going to have any in the lottery for next year. The way things are going the last couple of years, it may have been later in the year, but most of the housing projects that have been in the lottery have ended up eventually getting an allocation. That wasn't the case in years past, but there have been a lot of I guess burn through and other application that's haven't made. So --
>> [indiscernible] we are anything if not patient, that would be helpful.
>> basically go up against required time line that you have to meet within --
>> no.
>> the time frame.
>> the money that you would grant us would be the starting point from which we would start really working on the project. That would facilitate a multi-year gift of any kind, that would be helpful.
>> great.
>> yes. So let's take it back a week. What in the world was -- has happened, I mean, at last week I guess that's why we have asked for these numbers. But there was an asking of $800,000.
>> correct.
>> we don't have it.
>> assuming that that was, you know, a large number and the $500,000 got at least mentioned because of any baby can and the process that took place there only to find out what we really have in the piggy bank is 50 grand that -- I mean were y'all, have y'all thought that there was something there that you just found out that there wasn't? Or were you just saying I mean in the event that you have this lottery, if the -- in the event that you are willing to issue bonds, I mean, what would -- what was y'all's thinking, eric --
>> I think -- the availability perhaps of -- of money from the health finance corporation's well, whatever the lottery would yield, we thought there might be some available from that as well to be able to get to $500,000 gift over three years, similar kind of thing would be what -- what we thought would be appropriate. We didn't know if the -- like we said, the full $800,000 is what we needed but we knew that the court had only granted $500,000, that would be a great gift as well. That -- that -- given that, not wanting to set precedent that would be perfectly okay. If there was a way to make that happen. Over the course of three years, that's really what we were hoping to do.
>> most gifts are really more in the range of 100 to 200. Except rare circumstances.
>> when I heard 50,000 availability, I remember recently we have been dealing in terms of 100,000, my goal was at least to get there. I didn't have in mind over three years. I had in mind like over three days. Now it looks like three months.
>> yeah. There's not a huge revenue.
>> I do think we ought to be mindful of, in my view, spending revenue out of the housing finance corporation to promote home ownership, programs that -- that help low to moderate income folk, especially seniors, maybe, retain homes. Which really is a kind of weatherization program, without that I think a lot of folk would really be homeless because the houses that they live in really are not adequate but with some improvements. Many of them really are made livable. Those residents able to stay there which is why I think the county home theirization program is a -- the county home weatherization program is a good one. I think if you have got time, if you still just started trying to raids that 800 -- to raise that $800,000, I would say maybe put our heads together again the first part of November. See what we have then. Between now and then we commit to leaving 50,000 there.
>> sounds like a plan, judge.
>> the -- I guess what I need to find out if -- is because I know that we have discussed the tax base as far as the particular homes being able to put money into a -- into our property taxes here in Travis County. Have there ever been a -- ever been a -- a situation where you have been able to project the -- the amount of tax revenue that would be generated from the number of homes.
>> we need --
>> toward the tax base, is that some kind of figure that's around for that?
>> sure. We took it out of the five to 10 years in the e-mail we sent to harvey. Took into account some things. It's right around, five years, once all of the houses get on the ground, it's about $85,000 and 10 years about $170,000. Assuming a flat just projected out from what it is right now, with no increases that sort of thing. But michael may have more updated numbers than that.
>> Commissioner Davis, I don't know if I understand your question. But let me provide some information to you. We currently -- we currently have on an annual basis, we are providing through our habitat homeowners on an annual basis over $33,000 in county taxes. As we build more houses, of course, we are going to be adding to that number and the information we provided harvey was that -- was that of the -- of the 42 homes that we are going to be building on this 10.2-acre piece of land, initially we are going to generate in the first year an additional $10,000. As a minimum, $10,000. In county property taxes when all of those lots are built on. Of course, that -- that -- because of the homestead exemption program, those -- those -- those will be -- those tax appraisals, will be capped at 10% each year, they will go up 2% each year on average. So we will be able to see increased revenue coming back to the county. For this type of program.
>> okay, that's -- okay, that's -- that's basically what I wanted to go public with that so, you know, because that had been mentioned as far as what revenue can be generated to the tax base, with the property taxes. I think that needed to be disclosed.
>> thank you.
>> thank you.
>> question. There's listed here in terms of some things that you are working on with the city. Something called a heritage village.
>> correct.
>> is there some place, I mean is the money better utilized to try to leverage more lots within heritage village? Which may have less challenges associated with it as opposed to a brand new giant subdivision which has a lot of sunk costs.
>> good question. Heritage village all of those lots have been taken --
>> thought that I would ask.
>> good question to ask. If there were more opportunities for us to participate in those type of -- type of building and developments, we would do so. But at this point in time we do have this land, we need to get it developed so we can provide these homes for those families in need.
>> same thing with vargas.
>> vargas is 11 lots that we are developing, it will just be a habitat project. There are only 11 lots there, though.
>> thought we'd try.
>> that's right.
>> gentlemen, you all need to identify yourselves for the clerk.
>> fine. Eric shepperd.
>> I’m michael willard. Executive director of Austin habitat for humanity.
>> thank you. Is the consensus we won't spend that 50,000, you will come back to see us, an unofficial hold.
>> that's right.
>> and come see us and we'll see what the lottery looks like.
>> cliff blunt in the blue shirt, was bold enough to come without a jacket.
>> and harvey Davis.
>> thank you very much. Now, going back to number 1 under housing conditions corporation. 1. Discuss and take appropriate action on wellness fair, 20k run and 5k run at Travis County exposition center on December 5, 2004, and authorize payment of funds to cover costs of wellness fair.
>> I believe a companion item was passed on consent by the Commissioners court and the purpose of the corporation is to provide funds that has already been budgeted for the wellness program and this backup requests approval of $1,200 for expenses to the expo center.
>> now, we authorize 18 -- 18,000?
>> yes, sir.
>> there is some of that left.
>> yes, about 14, some -- mx of 14,000, yes,.
>> that's in addition to the 50,000 we were talking about a few moments ago. That [indiscernible] reduce the 50,000.
>> we would do is advertise this event at the expo center on December 5th. County employees participate.
>> to pay for the rental of the bank.
>> right. We itemize, spent a total of 1800 bucks, you all.
>> questions, comments?
>> move approval.
>> second.
>> are we doing this in conjunction with another entity.
>> two additional entities.
>> we are sponsoring the race in conjunction with brown santa, also the Austin runners club which annually has the decker challenge, we are joining together in a concerted program to bring forward this wellness program.
>> okay. Any more discussion? All in favor? That passes by unanimous vote.
>> thank you all very much.
>> thank you.
>> all in favor? That passes by unanimous vote, also.
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Last Modified:
Friday, October 28, 2005 8:34 AM