Travis County Commissioners Court
April 19, 2005
Housing Finance Corporation
Good afternoon, we do not need the northwest Travis County road district no.3 this afternoon as there are no investments and no claims. However we do need the Travis County housing finance corporation one item. 1. Consider and take appropriate action on request to approve a resolution and grant application to apply for funding from the Texas department of housing and community affairs for an american dream downpayment initiative program.
>> mr. Davis.
>> good afternoon, I’m harvey Davis, manager for the corporation, on March 15th you allowed us to prepare a grant application for the american dream down payment initiative. This grant application is with the Texas department of housing and community affairs. So the purpose of this agenda item is to ask the board to approve the grant application and to approve a resolution that is required to be part of the application. The resolution states three things: first it states that the corporation will match $50,000 as part of the grant program. The -- the american dream down payment initiative program. And it also states that the corporationment commit -- will commitment cash reserves of $53,625, these reserves are necessary to fund closings before we -- before the corporation receives reimbursements from the -- from the state department. And, third, the resolution authorizes president Biscoe to execute the contract with the state if we are successful in the grant application. Since I had outlined the -- the program on March 15th, we -- I have made some changes to the program. That I’m asking the board to approve. The main reason for the changes is when we carefully looked at the points that successful applicant were getting in the lasting round, last go round, we determined that that the program that I outlined to you on March 15th was a little more restrictive than we were actually getting more points than we needed to be successful in the grant program. So the -- the revised program is making the program principally less restrictive in that we are providing more -- assisting more families below 80% versus families below 60%. So let me carefully or quickly review the changes that I’m hope thank the board will -- that I’m hoping that the board will approve. First we are increasing the number of families assisted from 28 to 30. We are increasing the number of families assisted below 80% m.f.i. From 9 to 18 and decreasing the number of families assisted below 60% from 21 to 12. I feel that this will give us a better opportunity of fully originating the program. The assistance is changed to be -- to be $8,100 per family. So everyone, all 30 families will get 10 year forgivable loans of $8,100. The -- the grant -- the amount requested is increased from the -- that we are requesting from the state from $200,000 to $214,500. And the -- the match funds, the $50,000 match funds would be used for 30 $1,600 forgivable loans, forgivable over 10 years, which is $48,000, and then the -- an additional $2,000 for the home buyer assistance. If you will recall, that we would be providing the home -- the home buyer assistance is $75, the home buyer education classes are $75 per family. The corporation would be paying 50 of the $75. So 50 times 30 families is $1,500, the -- the difference between 15 and $2,000 would be for families that may take the course, but then for whatever reason would not be able to close on the loan. So we would have that -- we would have that extra $500 for those situations. If you will recall on the -- in my March 15th presentation, I recommended that the -- that the first -- that we -- the first lien that we require the home buyers to retain a first lien from either the Travis County bond program or the Texas department of housing and community affairs bond program. And the idea was that these families would then have -- we would be comfortable that they would have a good deal on interest rate and would have a fixed 30-year mortgage situation. I am asking the board to -- to widen that a little bit and to allow the home buyer to -- to also use the Texas state affordable housing finance corporation's bond program. They have state-wide bond programs that are geared towards firefighters, police officers and school teachers. And also that -- that we allow the home buyer to utilitylize the -- utilize the Texas department of housing and community affairs mortgage credit certificate program. So that they could use those, too. Again, this grant application is due April 29th. So if the board has questions, to make changes, we did have another week that we could finalize this application.
>> questions? So is the -- are we asking the Texas department of housing and community affairs for the 200 -- $214,500.
>> yes, sir.
>> our amount would supplement that if we are given --
>> that's right.
>> we believe that the need, affordable housing need for families at the 80% of the median income level is great, also?
>> yes. Going from 60% to 80%. Kind of a big gap. But 80% is still -- means a whole lot of families in need that could benefit from this program?
>> absolutely, yes, sir.
>> okay. They tell -- on forgivable loans, if you [indiscernible] less than 10 years, you may have to reimburse us part of the --
>> that's right. It's forgiven 10% each year. Each full year that you live in the house, it's forgiven 10%.
>> two percent?
>> 10%.
>> 10% each year.
>> okay.
>> for over 10 years.
>> okay. Sounds good to me, questions, comments? Move approval.
>> second.
>> discussion? All in favor? That passes by unanimous vote. Do we have reason to believe that we stand a good chance of getting this loan, getting this grant approved?
>> I believe we have an excellent chance, yes. Yes.
>> then my eyes --
>> I am very optimistic.
>> thank you, mr. Davis.
>> thank you. That does it for the housing finance corporation.
>> move adjourn.
>> all in favor? That passes by unanimous vote. Remember that we have an economic development meeting tomorrow night. At the expo center.
>> judge, I want to tell folks that are willing to today, because all of us got invitations, those folks [indiscernible] in the audience, we are not precluding you from attending this regional development economic meeting. It should be quite interesting and very issue ative. The address is 7331 decker lane. It's at the Travis County expo center. In the banquet hall, the event starts at 6:00 30, it lasts until 8:45. That's tomorrow. So if you want to attend, you are quite welcome to attend.
>> all right.
>> and on Thursday afternoon we have a work session in the Commissioners court, with three important items.
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Last Modified:
Wednesday, April 20, 2005 10:34 AM