Travis County Commissioners Court
January 3, 2006
Housing Finance Corporation
Let's call to order the Travis County housing finance corporation. Do we need action on number one?
>> I’d move that this go to administration, which is basically the same lineup that we have on our officers for next year.
>> second.
>> any discussion of the motion? Any objection from you, mr. Davis?
>> I have none.
>> all in favor? That passes by unanimous vote. Two is to consider and take appropriate action on request to authorize the creation of a new corporation that qualifies as tax exempt under section 501(c)3 of the internal revenue code.
>> good morning, I’m harvey Davis, manager of the corporation. There are two reasons that a 501(c)3 corporation might be in the best interest of the county. One is that hopefully we'll have the scholarship program, and that a tax exempt corporation would be the better vehicle to receive and disburse the funds. And if we have an ongoing scholarship program that hopefully it would also receive donations other than from american housing foundation, and we would want to have the opportunity that the donors would get a tax deduction for the corporation. The second reason is that if we have a tax exempt corporation, this would enable the housing finance corporation to solicit funds for its affordabling -- docial housing -- affordable housing programs, one of which has community obligations. Cliff blunt has informed me that the fee would be under $2,500 to get the incorporation status and to apply for and obtain the tax exempt status from internal revenue code.
>> how long would that take to go through those type of transactions? Before it would go into effect?
>> I would guess six months.
>> six months?
>> yeah. He has gone through the process several times recently.
>> so in the meantime, does that interfere with anything that we have pending such as scholarship monies and all these kind of things that we need to maybe be in place as far as receiving, would that have any interference? That's my concern.
>> I don't believe so because it would take a very short time to incorporate and have an entity that could have a bank account and receive money and then its 501(c)3 is just a pending status or waiting approval from the internal revenue code.
>> okay. I want to make sure of that. All right.
>> if we do have a tax exempt corporation, there is filing requirements with internal revenue code if you receive donations in excess of $25,000, and I believe that our staff is qualified to prepare the form 990 that is required for the tax exempt corporations.
>> move approval of the item. Withed understanding that the president of the corporation and mr. Davis will work with mr. Blunt before we agree to a fee.
>> second.
>> what happens on these is typically the application is granted and they look at your submissions over the first year or two to decide whether or not 5-a one c three status is sustained. Item cli they grant it up front just based on filing the proper paperwork. Later though they reserve the right to come back and take it back from you or to confirm it is how they do it, but we'll come back to the court before an agreement to compensate a reasonable legal fee to get it done. How's that?
>> that's fine.
>> discussion? All in favor? That passes by unanimous vote.
>> move adjourn.
>> second.
>> all in favor? That passes by unanimous vote also.
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Last Modified:
Wednesday, January 4, 2006 10:36 AM