Travis County Commissioners Court
March 28, 2006
Housing Finance Corporation
Now let's call to order the Travis County housing finance corporation. Number one is to consider and take appropriate action on request to approve an invoice from consumer credit counseling service.
>> good afternoon, I’m harvey Davis, manager of the corporation. The amount of the invoice is $150 and that is for american dream down payment program. This was classes for two home buyers. As a remind.
>> the way the payments to consumer credit counseling work is that the home buyer pays us $25. Their fee is $75. And we have received the payment from the home buyers. In fact, both those home buyers have already closed on their homes.
>> move that the invoice be paid.
>> second.
>> discussion? All in favor? That passes by unanimous vote. Item no. 2 is to consider and take appropriate action on request to prepare a grant application for funding from the Texas department of housing and community affairs for a 2006-2007 american dream down payment initiative program.
>> the state has notified us that funds are available for the american dream down payment initiative program. In the past they have provided these funds on an annual basis. We applied last year, were awarded funds and we have a program that started a couple of months ago. They have said that they are grant cycles are now going to be every other year, so this would be the last time that we could apply for these funds until 2008, perhaps at that time the county will receive directly the home funds, which is the source of these funds. What I would like to do is just briefly outline the proposed grant application and then go over the issue of the match funds that would be needed. The design that we would propose if we're given the go ahead to prepare this application is similar to the program that we have going now where we would be providing assistance for 30 home buyers, 25 at 60% of the area median income and below and five at 80% of the area median income and below. This is a little more tilted towards the lower income families because of the scoring necessities in the grant application. We would be applying for $200,000 in funds. The match to maximize the points in the grant application would be 25% of the grant, which would be $50,000. The application is due April 28th. We would -- the requirement, like this one, is that the home buyer has to take an eight-hour home buyer education class. I would propose continuing to use consumer credit counseling. I think they've done a good job and we've used them on the last -- the prior two grants that we have areceived award. We would have to do a survey and receive feedback from at least 30 families that might buy a home, and so I would request your permission to then use the county e-mail service to solicit the survey from county employees, which certainly helped a lot. And if we were to be awarded the grant, it would -- we would probably have a program that would start November-december of 2006. If what -- what they have told people is if you're not awarded -- in 2006 since people can't make an application in 2007, then the people in 2006 that didn't get awarded would then be eligible for funds in 2007. So that's I think sort of the way the state has set it up.
>> is this for first time home purchases?
>> yes. This would be for first-time home buyers and it would be for the people buying a home in Travis County, but outside the city limits of Austin. The city of Austin has -- they've received home funds. They have down payment assistance for city residents. Really the main issue I see is first whether the board wishes to commit funds for the match and the fact that at the present time the corporation doesn't have $50,000 in match funds. We have made quite a few commitments and so right now there's not that money available. I do have a few suggestions of how things could be changed to provide those funds. One suggestion is that we have the commitment of funds to habitat, $100,000. That was made in 2004. And this was -- they were requesting the funds to assist them in their den vonshire -- did he svenshire subdivision. I did talk to habitat yesterday and they are still wanting to proceed with this funding. They're still getting the final approvals from the city to develop this property and they're looking to get sufficient funds to do it.
>> but they're a ways from it?
>> they're a ways from it. So my suggestion is we could cut the commitment from 100 to 50 right now and then provide the other fist 50 when funds became available down the road. And then the second suggestion would be we do have a plat reimbursement program. Our budget right now is $50,000 for that program. I do know next week that there is going to be a contract that's going to be on the agenda for $21,000, so perhaps the budget could be reduced from 50 to 25, that would free up $25,000. And then the --
>> can we get a handshake on those commitments, mr. Davis? I know we gave our word on the commitments. Did we give a handshake too? This is Texas, now.
>> there was no handshake. There was -- let me briefly mention -- I’m sorry, go ahead.
>> this may help you as you go to your third point. Let's say we make the commitment to a local match and we get approval in November. When would we actually need the $50,000 to meet that obligation?
>> we would need it in calendar year 2000.
>> 2007?
>> 2007.
>> one at a time.
>> not necessarily on the front end, but we would need it you think sometime next year. Year: that was my only point that we have a little bit of flexibility, but it really depends on cash flowing it. And do we know the likelihood. Do they rueview us as being one of their better partners when it comes to implementing these grants over at the state? Or does that matter?
>> do you as a good partner or the corporation? [ laughter ]
>> actually, my opinion of the state is they tend to award funds more towards smaller community, more rural communities because the bigger urban areas, most of them receive -- are participating jurisdictions and receive funding directly from hud. Well, at this time Travis County does not as far as the non-county area. I think that's going to change soon, like with the cdbg process. That's one reason we need the match. Sir?
>> what is your third recommendation?
>> the third recommendation was seeking community reen investment -- reinvestment act funds from commercial banks. I’ve gone ahead and actually talked to one bank, chase, seeing what the prospects of that was. We did receive funding from that source a couple of years ago.
>> is that the reinvestment act?
>> yes, sir.
>> so right now those three totals that you have given us from those three different scenarios total to be about $80,000. We're really talking about 50, but the point is, as the judge stated, we really won't need that until 2007.
>> yes. The next budget year.
>> and I know that you said next week we have something on the agenda coming up for the reimbursement program, which is something that briar creek and others, and that actually is something that keeps affordability of homes to a degree where we can have participation at different levels of income one one subdivision. So I think I’d like to maybe -- anyway, I think I like what the judge's suggestion is. Judge, I’m going to let you go with that, but I kind of like what you were saying there.
>> my idea basically is to file the application, try to get the grant, and then when we know for sure that we have it, we find out a way to meet the local match.
>> okay.
>> I second -- mrs. Gomez has already got it. That's fine with me.
>> as this program goes on, I guess the sooner we know that we might get it, the better also we can start preparing for it.
>> and we'll know in June. June or July.
>> okay.
>> thank you very much.
>> any more discussion of that motion? All in favor? That passes by unanimous vote. For those watching, this is basically down payment assistance that comes from the state, but every time the state puts three dollars in, if you are a grantee you have to put in one. So we're worried about our local match. This helps basically low to moderate income Travis County residents acquire home ownerships. And also expands our tax base a little bit. Right?
>> that's exactly right, yes, sir. And if you're talking about 80% median income for a single person, it's about 39,000 for a family of two. It's the low 40's. And 60% you're getting a single person into the low 30's.
>> as you prepare next week's agenda related to the plat reimbursement, I hope you're doing an analysis of whether that is a successful program and whether that ought to be continued and one that we call it a day when we finish with what we think might be verbal or a handshake agreement that yeah, we kind of made that commitment.
>> okay. If we get this at our next grant, we need to make a run at county employees that ought to qualify, to make sure they know about the program. They really should, but not everybody watches us as eagerly as some others. But I do from time to time wonder whether our own employees take advantage of these programs. And with this much down payment assistance, it's a good program if you can qualify.
>> and the survey really generates a lot of interest. There has been quite a few county employees that have used this program to buy a home. And the design of this program, like the last one, requires the home buyer to use either the state's bond program or the county's bond program or the state's mortgage credit certificate program. And this really provides a great start for these first time home buyers. They really have real equity in the home when like in this program they get an 8,300-dollar forgivable loan, plus an annual -- say if they use the mortgage certificate program, they get an annual credit on their income taxes that can be as high as $2,000 a year, and that credit is available as long as they pay on the mortgage on their home. Both programs are really great programs. And when you combine them, it's a great start for a home buyer.
>> and the first time is defined --
>> the first time defined as somebody who has not owned a home for the last three years.
>> so it's not your first time ever, it's not having a mortgage in the last three years.
>> right.
>> move adjournment.
>> second.
>> all in favor? That passes by unanimous vote.
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Last Modified:
Wednesday, March 29, 2006 10:48 AM