Travis County Commssioners Court
December 7, 2004
Housing Finance Corporation
Now let's call to order the Travis County housing finance corporation.
>> housing finance, number one passes. Number 2, receive
update and take appropriate action regarding redemion, again knee may and
fannie mae, series 1994 and series 1994 b.
>> good afternoon, I’m harvey Davis, manager for the corporation.
As you know, this redemption of the 1994 bonds has been completed and the
trustee is holding funds and penning resolution, the first request was that
the trustee pay to the corporation 25% of the residual amount of this transaction.
That residual amount of 94,197.09. And the second request was that the trustee
waive their fee, which is $15,000.
>> 1500.
>> sorry, 1500. Right. [laughter] the trustee has agreed
to waive their fee. But has not agreed to -- to the payment of 25% of the
residual amount. So as -- at this time, the -- the corporation is to receive
25% of that amount. And with the waiver of the fee, of $1,500, then the corporation
would receive 25,246.77.
>> so the person who was the -- the rightful owner of this
benefit has offered to us pay 25%, so we have that coming.
>> yes, sir.
>> and on top of that, if we take up trustees offer, we have
an additional $1,500.
>> that's right. The owner person has been paid their 75%
of the residual amount. All other funds are being held by the trustee.
>> I take it that cliff blunt concluded that there was no
way for us to intimidate the trustee into paying us 25%, so maybe 1500 is
the best that we can do.
>> that was my interpretation of his response, yes, sir.
Of his legal opinion, right.
>> I was about to reply to his -- to his e-mail until I saw
yours, mr. Davis, you saved me a lot of time [laughter]
>> who is being charged the -- the expenses related to this
deal? I mean, obviously we had people that worked on this deal. Where do their
expenses come out of?
>> their expenses, which is listed in your backup, comes
out of the proceeds of the transactions.
>> okay. And --
>> so I mean that's -- the residual figure that I gave you
of 94,000, that is net of their expenses.
>> thank you. Okay.
>> you're welcome.
>> making sure that was covered.
>> for the record, clearly the opener of the residual did
not owe us 25% since we had done the work and had this positive expectation
sort of out of his generosity he agreed to share it with us.
>> that's -- that seems to be the case, yes.
>> we have on the horizon, I guess, some other projects that
may generate additional income for the corporation.
>> right. That closing that -- the 2,000 issue is scheduled
for the 9th. So two days.
>> okay. Move that we take the trustee up on the $1,500 before
he changes his mind.
>> second.
>> there being a few other -- there being few other options.
That is to -- to --
>> that's -- I would agree, that's true.
>> okay. And on the 25% do we need to move that we accept
that, too? Did we do that last week?
>> I don't think we did it.
>> well, I think the trustee was requesting that the corporation,
the president sign a letter authorizing the distribution of the funds. That
letter would need to be slightly modified by our attorney, due to the fact
that -- that included in the distribution would not be the $1,500.
>> I would never sign such a letter without the -- without
the authorization of my board, mr. Davis.
>> second.
>> so -- that is included in the motion. That the -- that
the president of the corporation be authorized to sign on behalf of the board,
the letter to the trustee indicating our acceptance of I guess 25%. Plus $1,500
from the trustee.
>> correct.
>> seconded.
>> any discussion? All in favor? That passes by unanimous
vote.
>> move adjourn.
>> second.
>> all in favor? That passes by unanimous vote, also. Thank
you very much, mr. Davis and others. Lad, you were here on that item, right?
>> yes, your honor.
>> I was just hoping that you hadn't somehow missed -- we
hadn't somehow missed you. I saw you are eagerly, about eagerly to jump into
the middle of the fray. [laughter]
>> [inaudible - no mic]
>> all right. Take care.
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Last Modified:
Wednesday, October 26, 2005 2:16 PM