Travis County Commissioners Court
December 6, 2005
Housing Finance Corporation
Now call to order Travis County housing finance corporation 1. Consider and take appropriate action on request to implement a scholarship program for Travis County residents.
>> good morning, again, harvey Davis. Here with cliff blunt. I have given you in your backup a -- a broad outline of a scholarship program. As you know, the comption has the opportunity to -- the corporation has the opportunity to receive $300,000 a year from the american housing foundation for giving its permission to refinance their projects, five apartment complexes, in -- in Travis County. And with another issuer, and -- and in exchange for this, this permission, they have offered to -- to fund a scholarship program that would be $300,000 at closing, plus $75,000 a quarter as long as they own these apartment -- five apartment complexes and as long as the apartment complexes generate sufficient cash flow to fund the scholarship program. We have -- this broad outline was as a result of a meeting that -- that judge Biscoe and leroy nellis, myself and wylie hopkins had with the housing authority of Texas Travis County and some conversations that I致e had with Austin community foundations and then also looking at the dallas housing authorities project. I think what makes sense in my presentation is to sort of outline three ways that you could give us directions on going and having a scholarship program. One would be basically following the idea, what the dallas housing program is doing, they have a full-time employee that offers a lot of service it is beyond just what -- taking scholarship applications and facilitating, making decisions on a scholarship program. This is targeted to -- to section 8 housing and public housing residents in dallas they provide assistance in applying to college, getting financial aid, taking tours of -- of colleges so that they set up a separate non-profit corporation. So -- so this is the direction that -- that we could go in which we could use this fund to fund an employee, to provide basically to do it ourselves. Set up our own non-profit corporation and establish a citizens review committee to -- to evaluate applications and make awards and in other words we would have full control and full implementation of distributing these moneys to students who -- who are either below 60% of the Austin area median income or first generation students. That's one direction that we could go. Another direction would be to -- instead of doing it all ourselves is to perhaps contract it with a northern profit entity that is already working with high school students or this age group, working in low income areas and contract with them to implement a scholarship program established by the corporation. So that we didn't quite do it all ourselves, had a partnership with the entity that they would be compensated for all of this work and would have experience maybe, a little more experience than we had on staff. That would be road number 2. Road number 3 would be instead of doing it ourselves in some manner is to -- to make donations to -- to foundations that -- that then would distribute the money, these would be scholarship foundations, that then would distribute the money according to the criteria that the bored established for making scholarships. So that -- in the backup I talked with the Austin community foundation, there are other ones like a.c.c. Has a foundation that would be happy to accept scholarship money or huston tillotson, I haven't talked to them, but they probably have a scholarship foundation, so there are various entities around town that money could be used to make the money for the foundation, they could distribute it according to the agreement that the corporation has for these foundations. So those are basically the -- the three sort of broad ideas that -- that I wanted to present to the -- to the board for your consideration. Maybe y'all might have additional ideas or give us some directions of where you would want us to take this matter.
>> I think it was a representative here from the dallas area, that -- that had some -- some expertise as far as dealing with as far as the dallas housing authority. When this was first brought up to the court, as well as to the corporation. In -- in the thing that -- that I challenged them and I think they had been in existence, I guess as far as doing this for a couple of years that it appeared that they had quite a bit of success doing this under that type of -- of -- of structure. I guess my -- but I did pose a question then, I知 going to pose it back, repeat it now, because you did mention things as far as eligibility, as far as persons that would be right there at hand looking at the section 8 persons, those persons that also are residents within the housing authority structure, the question is what about folks of this -- outside of this structure, if it's the Travis County housing authority, I guess the Austin Travis County housing authority, I don't know. But what about folks that are eligible outside of this structure losing an opportunity to -- to maybe not participate because they are readily not available under the set structure under housing authority. Has that been looked at as far as flushed out to make sure that the Travis County residents that are eligible, whether they reside in -- in the housing structure section 8 of course tenants do not necessarily have to be a part of a public housing per se, but they are part of the process, you still have eligible persons that would be -- would be able to receive the scholarship may not be section 8, may not be a part of the other things. My concern is how do we focus and -- and with a net and bring in as many as we possibly can, even though we know it's [indiscernible] thousand dollars, each thousand units for american housing foundation will be offering in scholarship money, I would like to see more of a general net approach and ensure that nobody is left out. So that's where I知 still coming from. [indiscernible] felt comfortable with some of the answers that I have gotten, I want to make sure that no one is left out that's eligible. I know --
>> in the dallas situation, that dallas housing authority issued the bonds for american housing foundation. So next -- so they wanted to use the money for their residents.
>> right.
>> for -- if this if they are able to close, the Travis County housing finance corporation was able to proceed with this, then it's up to the board to -- to establish the criteria of how restrictive or how broad the scholarships are made available. And when we talked with wylie and with judge Biscoe we were discussing in the manner of -- you know, could this money be used if it was just the -- the residents and section 8 and residents and public housing residents of the housing authority of Travis County. And -- and it -- it might be a difficult thing to use that. But again it's up to the board of how broad or how narrow these scholarships would be made available. The -- the broadest that they could be in -- this is from american housing foundation, is that the -- the family income of the recipients have to be below 60% of Austin area median income or --
>> what is that? 50% as far as family income, median family income as far as Travis County, what is that right now, dollar amount since you brought it up? 50%.
>> I didn't bring the figures with me, as I recall correctly, for a family of four, it's about $45,000.
>> $45,000. Would be able to qualify.
>> I believe that's -- I believe that's correct.
>> 60% of that.
>> 60% of that.
>> that's the 60% figure.
>> of that amount.
>> no, no. It's around 42,000, I believe the area might have might have for a family of four is about 72,000, 70 to 72 how in the last figures.
>> what I知 saying, I guess my point is that the eligibility criterion based on that --
>> it was the 60% or a first generation student, which was defined as student whose parents do not have a college degree. Again that's a pretty broad -- I guess my concern is that I want to make sure that those who want to go to school and achieve higher education have that opportunity. That's why I went off of this, didn't mind dealing with this when we allow the bonds to -- to be issued even though we don't get anything out of state, but there was a -- there would be tremendous property incentives for these folks here to do this. So I知 concerned. I was going to comment the board can establish the income limitation, anything below 60%. If in fact the intent of the board is to reach those of the -- of the most need. I mean, you can bring that income level down anywhere you would like. So I think that 60% is the ceiling.
>> can we find out what the income level is for eligibility for public housing and section 8?
>> 8, yeah.
>> I think it's lower that --
>> much lower.
>> [multiple voices]
>> confusing median family income numbers, considerably higher simply because of what is in this community with federal poverty guidelines, which are --
>> caller: 06% figure is from american housing foundation and their determination letter was permitted to do these type of scholarship programs, one of their purposes. In their determination letter it has to be used for families at 60% of the area of family median income or median family income for people that are receiving those scholarships live across the country. That's kind of your ceiling. As leroy said you could come in and make it more restrictive if you want.
>> I would like to see us do more work on what that number ought to be. But that number sounded awfully high. I also think that it is -- I join you Commissioner Davis, I would like to see a larger pool about where does somebody happen to live at the moment that they are a student. A lot of the people struggling, working poor, take great pride in the fact they are not in any public assistance, double or quadruple bunking with family members, I really don't want -- of course these folks ought to be in that pool, but there are a lot of working poor folk that are not on any kind of -- in any kind of a housing project or section 8. I don't think it should be that inclusive just because you are not on the public dole that somehow you are ineligible but you are just as poor and needy and trying to make it but not to do it with federal assistance, I feel strongly about that. Through this corporation we are talking about a commitment to habitat for humanity, I would hate to see that a child of somebody going through habitat for humanity housing situation, those folks could be just as eligible. I want to have good discussion about where ought you live, I think it's more about the family and first generation stuff, that's real important to me. Also one last thing, this is me, this should not surprise anybody, when we say stay drug free crime free, I would like to add stay child free. The definition of child free is that the person who signs this contract will not become pregnant or father a child after signing the contract. I really think that is something that puts you at a disadvantage, it would not penalize anybody because of circumstances and trying to make it through school, they have already got children, but it's like how many times Gerald I知 listening to you is that these things are so much tougher if we make choices about when to become mothers and fathers when we are in our teenaged years. This could be one more very powerful way to just say no. To having a child before you are finished with your schooling.
>> and some of the things that have been discussed here I think kind of bring up the -- the task involved in making sure children of poor families begin to think about college. Even if it's a.c.c., 80's tremendous cultural change. And leroy, I think that we have seen some of those students down at govalle, elementary, they may not be in section 8 housing, but for some reason or other, it has never entered their mind that a.c.c. Is available to them. Go so in that respect, yeah, I don't want to leave anybody in Travis County out. But there is a group of people who need to begin to think about a.c.c. That is the whole purpose of meeting voting for a.c.c. As well, so that it would include people who would not ordinarily think about universities. So while I normally would agree that we need to throw the net out as widely as possible, I think there's something to be said with changing the culture of -- of, you know, people in the section 8 and people in certain neighborhoods who really never think about education as a goal. But I think the school system can begin doing something there like govalle, they just come to mind. As -- as planning some -- planting some seeds now. That's where you know some of this money would really, really be helpful.
>> if we go the foundation route, do we -- are we thinking that we would be alto give the foundation criteria that we have approved for -- for our scholarship funds? Or would they simply apply the foundations criteria?
>> I -- we would -- we would enter into an agreement with the foundation and -- and give them I mean they would have to -- they would have to -- adhere the criteria that we have to adhere from the american housing foundation. I --
>> if we said okay we are looking for x percentage of -- of public housing residents, we believe they could implement that for us.
>> I think that might be difficult. I think a broad income ceiling might be doable. But further -- might --
>> okay. You all were not expecting final action today, were you?
>> no, we weren't.
>> why don't we do this then. Why don't we individually reduce to writing any ideas that we have, send those to harry, let harvey come up with a -- sort of a summary list that we could consider before having this on the court's agenda again. So the question is whether we want it back next week or two weeks from now.
>> two weeks.
>> okay.
>> can I ask harvey a question.
>> essential.
>> does it have -- certainly.
>> does it have to be a scholarship program? Do we have to spend this money on a scholarship program?
>> well, my understanding from the american housing foundation people is that is how this money needs to be spent. I can go back and ask them if there's any possibility of any other --
>> well, I would be willing to bet you that they put that in there because that sells. I mean, it's -- you know, it -- it sounds very philanthropic, who doesn't want a scholarship program, I mean, but we spend an awful lot of money in this community on a lot of things. Maybe better spent somewhere else.
>> it just needs to meet their 501 c 3 purposes, I can go back and discuss with their lawyers what flexibility is other than a scholarship program if you would like to find out.
>> call it whatever it is. When you are giving people money, that is scholarship. I mean, whether you are going to college on it, whether you are going to elementary school --
>> educational scholarship.
>> so I知 for spending the money going to the people that need it. But, I mean, I would rather not see us get relegated to you have to come up with this program. My god we have enough programs.
>> I think that they would try to be flexible. I believe that -- that they would -- it would have to be directed towards some specific -- that was helping people of low or moderate income.
>> yeah, I mean like --
>> how many after school programs do we have that we fund? I mean we are going to give it to those kind of folks. But let's -- I would like to have the flexibility to say, you know, hey here's where -- we are always asked for more than we can give.
>> I think the thing on this is that this was to give us more flexibility to work on some things where you wouldn't say that that's an appropriate use of general fund monies. We can't give away anything of value to anybody. So general fund dollars I don't think we could ever utilize towards this kind of a program where we are allowed to do it in terms of after school programming and things that we can tie back to a specific community need. This is another way to attack one of the problems out there and this is not our money, it's not the taxpayers money, this is money coming in from a specific set of circumstances with the ownership and -- and -- of some properties in this town of moneys that can come in for a good public purpose. So it is a way to -- for us to redirect their money into a good public purpose where we cannot spend general fund dollars. And it's another way for us to attack some of these -- these bridge the gap. [one moment please for change in captioners]
>> now, we do get multiple benefits in that a lot of these families are kind of multigenerational, non-college folks. And one way to break that cycle is for them to give kids an opportunity to go to college. And what's clear from capital idea and some folks like that, if you apply yourself you can be average, but put yourself in a position to make almost 15, 20 bucks an hour instead of 6.50 or 7.50, which there's nothing wrong with that unless you're locked in it permanently. It helps us too because the likelihood of you having access to our social services programs is much less that way. How we fasten it is fine with me as long as we agree to it, but I do know the representatives from american housing association did have fixed ideas about what they wanted to accomplish. And to the extent that we can taylor us a program that can sort of accommodate us and their needs, I think we ought to do it. I think we can do our own because we can always convert to something else in case it doesn't work. Part of this ought to be to inspire average kids to want to go to college. If you have not been thinking about that, I知 thinking if we get the committee to actually make the decisions to help this them rkt the person is treed up for the recruitment, the education part that's sort of motivating, and then making sure that the process is good, applications, who they're sent to, letters of recommendation, the rest of this stuff. The other thing that I thought as I was sitting there listening is we really ought to be able to get us four, five volunteers, retirees who are managers who have held significant jobs who work with young people and we could develop something real, real good.
>> I just think it would be great to be able to tell a child that when you're ready, there's going to be money because I think that's what kind of turns off a child, well, what's the use of setting a goal if I don't have the money? I don't know where I知 going to get it. And I think just being able to say there's going to be money, keep applying yourself, and you will be able to get into a.c.c., it's a big deal for some kids to get into a.c.c., and it just opens the door for them to other possibilities.
>> if the dropout rates are such that a lot of kids aren't even getting to high school, we are really being very narrow in terms of who can access this money. If r. What is it, one in our kids don't even make it to the high school level. They're not going to make it to college or vocational. I壇 like to see how some of this scholarship money for educational programs that are happening in the elementary and middle schools can help them get to high school and graduate and move on with their lives.
>> lt have it two weeks from now. What word limitation are you imposing on the court?
>> what? Word limitation?
>> I知 giving you ideas. [ laughter ]
>> I think it would be at your pleasure.
>> number two is a very brief item, consider and take appropriate action to approve omnibus modification of documents related to the corporation's multifamily housing revenue bonds, series 2 extending the commitment maturity date and the conversion date for the project.
>> just very briefly, this is almost identical to the item that we had on last week regarding woodway square. This is a six-month extension with the possibility of another three months if they meet certain conditions. And you've -- I don't know if there's any questions, but it's basically the same thing for the same reason.
>> move approval.
>> now any questions, comments? All in favor? That passes by unanimous vote.
>> move adjourn.
>> second.
>> that passes unanimously.
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Last Modified:
Wednesday, December 7, 2005 4:08 PM