Travis County Commissioners Court
October 26, 2004
Housing Finance Corporation
Let's call to order the Travis County housing finance corporation, first
item to consider and take appropriate action on the following, a, a budget
transfer. Mr. Davis.
>> I知 harvey Davis, manager for the corporation. As you
know the corporations pay Travis County each year for accounting, administrative
and clerical services, the contract for this year provides combined for the
corporations to pay $87,845. This fee is allocated among the corporations
based on their ending fund balance so the portion, the -- the portion for
the Travis County housing finance corporation is -- is $67,722.05 and that
line item in the corporation's budget needs an additional $2.95, so I知 asking
board approval to transfer from allocated reserve, $2.97 and to approve payment
to Travis County of $67,772.05.
>> move approval.
>> second.
>> of the budget and transfer and the payment in that amount.
>> second.
>> discussion? All in favor? That passes by unanimous vote.
With director daiftion away. 2. Consider and take appropriate action on results
of a compliance audit of the contract with agape Austin area housing, inc.
To provide low cost housing for the elderly and adults with disabilities.
Good afternoon.
>> and with the -- with me is andrea kalunga, who is a Travis
County employee with health and human services. And joyce hayt who is with
family elder care who will assist with this presentation, you will recall
last April the contract initiated -- initiated a contract with Austin agape
who is the owner of lakeview apartments, the reason that we had the contract
was that they -- that -- they owed the corporation an annual fee that was
unpaid and that the -- that the board came up with this innovative housing
idea of leasing, preserving 10 units at lakeview apartments for -- for tenants
whose -- who are elderly or disabled and whose income is less than 30% of
the Austin area median income. So -- so these tenants are able to lease an
apartment and pay 25% of their income in represent payments and correspondingly
lakeview is able to reduce the amount that they owe the corporation by --
by a formula that is, they take 80% of the market rent less what represent
is actually paid and that amount is used to reduce the debt. And so we have
gone out and done an audit of this project that's been going for a little
more than six months. And included in the audit was andrea and I interviewed
3 of the 9 tenants that are currently using the program. So if it's okay with
you, judge, I would like andrea to -- to give the board -- a report on those
interviews.
>> okay. It's okay with me.
>> all right, then. Good afternoon. As harvey said, we conducted
three home visits of three of the nine residents that are living at lakeview
and before I give you a quick summary of the vignettes I would just like to
say that it's an incredible pleasure when you -- when you -- at the beginning
of an initiative and actually make a home visit and see the apartment is empty,
have a discussion, collaborate with community partners and actually see it
come to fruition. So making these three home visits was very meaningful for
me, also. The first resident that we visited, she's a 58-year-old single female
who came to lakeside from family elder care's elder shelter, which is short-term
transitional shared housing program. And she reit rated several times how
happy she is to be residing at lakeview and how impressed she actually has
been with the staff there at the office. She had been a caretaker herself
taking care of another elderly couple for several years, unfortunately their
home burned down leaving her homeless. The elderly couple's son did research
and hooked her up with family elder care which is how she was able to come
in contact with them. She reports feeling very safe and secure at lakeview.
And talked ongoing about the ongoing services that family elder care has provided
her while she's been a resident. She feels very appreciative and emphasized
several times how there really wasn't an option for her, she feels that she
would have been on the street without this option to present at that time.
The second family that we visited was an older couple. He's 76, she's 70.
They came here actually visiting from another country and she was diagnosed
with cancer and became very ill while she was here. And she were unable to
stay with the friends they were visiting. Her medical treatment plan consisted
of a five year intensive program and so they were desperately trying to stay
here in this country. And the family reports that they are ecstatic about
being at lakeside, being able to stay in this country, for her to receive
the quality medical care to sustain her. They do have plans to move to lions
gardens, which is a family elder care program and this -- and also when they
moved there, they will be able to -- he'll be able to work in a laundromat,
that will increase their income and meet their needs, also. They emphasized
how appreciative they were at this on program and now they are actually able
to celebrate and plan their 50th wedding anniversary. So a wonderful couple.
The third home visit that we made was to a 59-year-old physician who had suffered
a -- a very serious medical condition, was unable to practice. He had waited
for quite a while before sharing with his daughter his desire straits which
he was in and was actually having only three days left on his current amount,
former apartment. His daughter, once he shared with her the situation, she
-- she contacted family elder care and they were able to work with him in
getting him lakeview, which he considers a real gift. He shared with us that
during his practice in Austin, he had provided a lot of pro bono work to the
community and how meaningful this program is to him. As an employee of health
and human services for the past 22 years, we've had many, many families, elderly
and disabled, residents of Travis County, come to our seven sites and -- in
similar situations and we know that when they do come to us, it's -- it's
sometimes situations where they are paying detail represent, exorbitant fees,
very high percentages of their little income they receive, these programs
are very, very important. To us. To the community. And in summary, harvey
and I felt that the interviews were very positive, the residents were allcal
phied and are receiving -- all qualified receiving excellent services from
agape and capstone and family elder care is to be condemned for referring
residents to the housing initiative who are truly needing the program and
the initiative.
>> thank you.
>> thank you.
>> so what's the -- what's the -- the beginning age to establish
eligibility.
>> elderly or disabled.
>> typically we use 55 and above because the cdbg funding
sources, but we also have actually housed some -- some folks with disabilities
who are under that age.
>> I think that was spelled out in the contract and -- and
I can't remember. It was -- it was 50 or 55 as being the age. If it's --
>> approaching that age -- kind of curious, it seems so young.
>> I知 very sensitive to that. The reason it's set is because
the cdbg elderly serves this fund being set in that way.
>> you are with family elder care.
>> I知 joyce hayt the director of programs at family elder
care, first I wanted to say that Karen langley sends her regrets that she
could not be here today. She's out of town this week. And she wanted to make
sure that -- that you all know of our continuing commitment to this project.
How excited we were to participate in the projects thus far. Thank you judge
Biscoe and the comirkses. Through harvey and the Travis County finance corporation
and having the opportunity to be involved this has been a very easy partnership.
Harvey, andrea, sherri flemming, back there, the staff at lakeview and kendra
peters at our office, also, have all worked very well together in -- in getting
these nine families or individuals into these apartments. We hope that the
housing initiative will serve as an example to meet the high need for affordable
housing in Travis County. We work with one section of the population in terms
of elderly and disabled who live on low incomes and fixed incomes. And affordable
housing and finding affordable housing is challenging for them. Our temporary
shelter, elder shelter that andrea mentioned, we turn away at least 28 individuals
a year who were not able to serve at that time. Who would have been eligible.
We also screen about that -- about that number of people who aren't eligible
and we don't really have a lot of good alternatives to -- to refer them to.
Our recently opened lions garden complex has a waiting list of 60 already.
And, you know, daily our case workers and care managers are faced with the
section 8 lists. Many people wait months to get assigned public housing units
and -- and as andrea told you about the interviews conducted with the -- with
the residents, all of the people have situations, they had high needs. We
had another woman who was just 45, but disabled in a car accident. She went
into rehab at a nursing facility, her intent was to get rehab and go home.
But while she was in the nursing facility her house burned down and she had
to -- she had a niece in the area who allowed her to come and move into the
home as a temporary solution because the niece has five children in the home
as well. So this wasn't something that could work on a long-term basis. And
she had a very small amount of disability income and needed to find something
-- something fairly quickly to get out of that situation. So lakeview was
-- was an opportunity for her. We also have a woman who's in her -- about
55, she's being treated for breast cancer. Lived with her sister who was mentally
ill and that illness was getting uncontrolled and she was being abusive, they
were going to be evicted. With her advancer treatments, her health conditions,
she really needed to be in an environment that was stable and where she could
stay healthy, even temporary shelters were not appropriate for her. So she's
gone into lakeview as well. And we've also had a couple of people -- the position
that was mentioned who don't have an income at this time and they -- the disability
determination process can take quite a while. And so there are periods where
people have no income and their ability to arrange for housing is -- he is
limited on that basis, too. -- there's been quite a variety of people served
up to this point and we hope that we will continue to serve a lot more. You
have in exhibit c more details about all of the client profiles. So I won't
take up all of your time. But -- this program creates a safety net unlike
any other in Travis County. For people who are situationally displaced it's
allowed them to stabilize their situation and move to establishing permanent
and affordable housing. In a comiewpt where a waiting list can be up to two
years long. Many of those we serve are not appropriate to house an existing
emergency housing due to weakened immune system and you willability to victimization
due to age or disability. So it's important to have options like these. We
hope that we hope that the initiative will be used to encourage other developers
throughout Travis County to set aside a percentage of units to assist these
low income residents with housing needs and again we thank you for your time
and attention on this project.
>> thank you.
>> in terms of if this credit is approved, where are we then
in terms of what is still balance due?
>> okay.
>> okay. What I知 asking the board to approve is giving them
a credit of 12 some dollars and 41 cents. The -- 12,000 some. The amount of
the fee was 55,640. So if the board approves this credit, which in my opinion
they have earned, then the balance due would be 43,518.55.
>> they agree the credit of 12,121.45 would be fair?
>> yes. We have gone over these figures with them and they
are in agreement that they are accurate.
>> so far the program seems to be working as we envisioned
around hoped?
>> yes and really happy to report how positive the staff
at the lakeview apartment is towards these tenants and the program. So this
is something that they took on with enthusiasm. Which you know really made
me happy when we did our onsite visit. I have include understand the backup
a -- a press release -- which, you know the idea is that it would seem appropriate
that since we have done the audit and feel like this is a successful program,
that a press release would be -- would be appropriate to -- to send out and
try to let the community know about this -- this really innovative housing
program.
>> assuming this gets them down to 43 and then it goes another
six months and you figure you knock off another 12,000 or so, depending on
what the circumstances are, at what did point does another annual fee kick
in? I feel like I知 visa here trying to figure out whether we are making head
way in terms of the fee or for all the credit they get, yet more is coming
back.
>> well, the annual fee is due December 1st of each year.
So another approximately 26, $27,000 would be added on to this. So what --
what credit they are earning is -- is approximately a year's annual fee. So
they are -- they are in essence always two years behind.
>> program has been in place how long?
>> since April of this year. The contract ends April of '05
and so at that time, you know, before that time, we would go out and do another
audit, which I think would be appropriate. And then decide whether to -- to
extend the contract or not.
>> okay.
>> I just want to make sure that I -- that I understand what
these numbers are. I think that I知 -- I think that I have kind of got it
figured out. When you first see exhibit c, it's kind of -- you have to kind
of work through it. But let me make sure that if you take the first 1668,
the first one, if you add those together, you -- you got about 22, $2,300
and that is -- is for the six months. So really what we are saying is, is
that for -- for the people that are living in that unit, they are living in
about a $380 a month unit, they are paying the 146.13, which is 25% of what
their social security amount is, and that's -- and to take it down for the
nine apartments that we have, that's how we come up with the 12,000 credit.
Is that right?
>> that's right.
>> okay. So -- so we are giving about two-thirds of the credit
towards the outstanding payment that we have, I mean, roughly --
>> 80%.
>> is it 80%?
>> 80% by the corporation, 20% by lakeview apartments.
>> okay.
>> is really --
>> let me say that -- that I think that it's -- I was not
overly excited about this at first. I think that it was the judge's recommendation
and after you read the -- the comments --
>> I thought we --
>> there were many of us involved in this whole thing.
>> was that a flashback or a -- [laughter] okay. Well, we
all voted for it.
>> sharing credit.
>> I知 -- I知 sorry. If I offended anybody. All of us then.
But you know when you read these things, I mean, it's obvious that it's really
a great opportunity for some of these folks and does put us in a spot crime
to, you know, to -- I mean to get some of what is due us. The other thing
that I was really proud to read was the thing about the staff. Being so nice
to these folks, one of the things that Commissioner Gomez is always talking
about is the word dignity.
>> right.
>> so often you find people that find themselves in these
positions and, you know, somebody is trying to work something out for somebody,
kind of like oh, you're in 301, we know who you are now I mean obviously that's
not the case. I知 really, my hat is off to the apartment and the management
and the ownership because that really is something that's -- that's nice.
I just wanted to make sure that I knew how to read this thing and it does
make perfectly good sense to me now as to what was done. So is it the kind
of replacement that we really have got to have whenever we, you know, are
due these dollars to us? Probably not. But I mean it certainly is a good amount
active for us being able to work towards, you know, getting something back
to Travis County, but again it's not the Commissioners court, it's coming
back to the Travis County residents which is the reason why, you know, we
have the house I thinking corporation -- housing corporation and all of this.
I think it's the best that we can do. I知 glad to be able to help some folks.
I知 sure that all -- that other six probably had equally as touching of stories
as the three that you all went out and interviewed and the doctors deal was
really, you know, touching to me. What goes around comes around kind of a
deal. The guy talked about how many things he had done for the community.
So I知 glad to -- to see that we are able to help people like that. So I mean
thanks for the -- thanks for the good work. I just wanted to make sure about
that page.
>> how are we coming along related to folks not associated
with this program filling up that apartment complex? The reason we are not
getting the fee is that the economics are just not working right now. Has
that improved at all? Are we still pretty much at the same status quo.
>> they have improved their occupancy there over 80, it was
in the 60s. They said they have steadily improved the rental situation.
>> so do they foresee a time when they will be able to pay
the fee or -- you know because at some point if this is what we are looking
at, I知 going to want to get the two years down to, say, one year behind.
And into that fee more.
>> I don't see that in the near future, frankly. Because
-- because when you get behind --
>> exactly.
>> they paid a lot of money for this apartment complex. And
-- and so they are not paying principal that's due or interest that's due.
Of course all of that is building up and so they have -- they have a lot of
ground to make up. Before -- before, you know, it comes down to priority of
where they would begin to pay the annual fee. I know that there's another
apartment complex in which the developer, you know,, we asked for this information,
but the -- but the developer of that one gave us very good figures of when
they expected to be able to pay their fee and this was one that was in a better
situation than lakeview and they were -- they were talking about more than
a year before they were going to be able to pay currently on their debt service
payments.
>> where I知 headed on this is given the need that's out
there in terms of even just emergency transitional housing and to hear over
at lions garden, if you haven't been over there is amazing, amazing complex,
that if there is a way to work with the apartment complex about -- rather
than nine ooch up a bit to start eating into that debt because again December
1st that number jumps way up there again. And we are not making any head way.
I feel like I have the visa card balance that never goes away here.
>> well, of course if -- if you all were interested in --
in decrease -- in increasing the units, we would be happy to discuss that.
Also remind you that there are two other apartment complexes in similar situations
that perhaps this type of program could be appropriate.
>> obviously the need is there.
>> uh-huh.
>> so I mean we can help each other. Get through the hard
times.
>> the six months, did they have to leave after six months?
I mean because that's kind of the reading through it -- that seems to be that
this is a -- that doesn't mean whoever is in there only has six months, does
it?
>> no. It's really the lease is six months. We made it six
months because people -- they are sort in a temporary situation, they may
have a job after six months. So it would be appropriate to -- for them to
pay -- to pay higher represent because they have a job. It's just kind of
to review their situation after six months.
>> for that one couple that went over to lions garden, they
are no longer in need of being there. Someone else can take their place.
>> well, we didn't -- the reason -- part of the reason why
the -- the occupancy has gone up, I mean, since I知 intimately aware of that
area out there, is you get your apartment rents right, and compare to what
they have in that surrounding area because there have been a number of newer
apartments, and so you see that thing blip up, I mean, although that's a little
bit after double edged sword, even though you get the occupancy up, given
the fact, you know, that their rents are lower than the other ones, is not
quite getting them there where they need to get I mean, you know, if they
leave their rents where they are we might find that they couldn't, you know,
make the deal work for themselves with -- with repay, if they were 98% occupied
so, you know, occupancy and rates both are the things that really get apartment
complexes outs of trouble. Given that property, it's old, renovated, huge
property, that, you know, we -- I think the only way that we will ever even
hold I mean steady with these folks and not continue to go farther and farther
away is by picking up more units and that is something that we probably are
going to have to look at ourselves and go, is the obvious the thing that we
need to be doing because there obviously are a lot more than nine people that
need to be in situations like this. You know, you do put yourself in a spot
where at some point in time somebody just says well, hey, here's how to take
care of our obligation and that's not exactly where we want people to go.
Unfortunately for us we don't have a ton of these things, but I do think that
at some point in time because your right we're going to take the 55 down to,
you know, minus 12 to the 43 and another 60 days we add another 27 on us it,
so I think we probably are going to need to look and see if more units is
something that we are going to have to -- to try to justify.
>> anybody here from agape?
>> no.
>> can we ask harvey and friends to get more information
about whether they do have the capacity to take on some more units and whether
that's a bring back to us to mull over.
>> any objection?
>> none.
>> you have been asked.
>> okay. I will do it.
>> we appreciate you all's help, too. You have every right
to be proud of it. Move approval of the requested credit of 12,000 -- what
is it?
>> [indiscernible]
>> second.
>> that's -- let's thank the apartment people, too, they
have a 20% contribution plus good service and cooperation.
>> right.
>> and which we appreciate.
>> as part of that motion, judge, does harvey have permission
to get the news release put out?
>> I didn't see that. Was that in there.
>> it sure is, you are quoted.
>> more political.
>> you are the second paragraph, judge, you were accurately
quoted.
>> sounding better all the time, mr. Davis.
>> is that friendly.
>> sure does. Include it. Any discussion of the motion? All
in favor? That passes by unanimous vote, thank you all very much. Ms. Langley,
we got it done without her, but she was mentioned.
>> move adjourn.
>> second.
>> all in favor? That passes by unanimous vote.
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Last Modified: Wednesday, October 26, 2005 3:25 PM