Travis County Commissioners Court
September 5, 2006
Housing Finance Corporation
Let's call to order the Travis County housing finance corporation. Item number one is consider and take appropriate action to on approve an invoice from consumer credit counseling service. I move approval.
>> second.
>> questions, comments? All in favor? That passes by unanimous vote. And item no. 2 is to consider and take appropriate action on request to give direction on a program to use 31 apartment units made available by american housing foundation for victims of domestic violence, the elderly and disabled.
>> good afternoon, I'm harvey Davis, manager of the corporation. You recall last year the board approved sponsoring a florida issuer for five apartment complex to issue tax exempt bonds on five apartment complexes owned by american housing foundation. And american housing foundation agreed to sponsor a scholarship program and to provide two percent of the units for -- to very low income tenants who were in an abusive situation or disabled or elderly. The closing of the tax exempt bonds has been delayed for a long time but they're optimistic that they will be able to close in November. So the scholarship part of it has not happened because the funds won't happen until the bonds close. However, american housing foundation has agreed to go ahead and offer these 31 units to -- so that that program could start, and they have executed an agreement with family elder care to make vainl to them 15 of the 31 units. That agreement was executed in July. The corporation snlt a party to -- is not a party to the agreement, so what I wanted to do was to make you aware that this has happened and to request that -- and I think this is a good thing, to go ahead and make available these units if they can use these, and request the board to approve the transaction that they've done and to tell you that if you want us to try to search for other providers for the remaining 16 units, we'd be happy -- I had in my backup a list of other possible nonprofit organizations that might be able to use the other 16 units. This is a nice thing that they are doing and they told me that the market prices of these units on average is about $658,000, which works out to an annual subsidy of $272,000.
>> so the contract with family elder care was cuted in July.
>> yes.
>> were they able to use the units?
>> they are using the units, right?
>> they're using 15 units.
>> yes.
>> but the closing hasn't taken place?
>> right. Is.
>> that's pretty benevolent. What's expected of the Travis County housing finance corporation when all is said and done?
>> well, the offer of the units was to the Travis County housing finance corporation, so it would seem that we would have -- if the corporation sanctions these 15 -- I mean, this is an agreement between those two parties. And so it would seem -- what I'm requested is that the board agree that these are 15 of the 31 units so that it is -- so that if this transaction closes, as they hope it will, then it becomes a part of the -- part of the whole agreement. Then at that point it would seenl that the corporation would have some oversight responsibilities to make sure that family elder care and american housing foundation are doing the right thing out there and making units available to those people and those units are being used, those kind of things.
>> that makes all the sense in the world to me. 15 units to family elder care and we have 16 more for some other nonprofit to do good.
>> right.
>> but as the "new york times" would say, what's the quid pro quo for the Travis County housing finance corporation? What do we have to do at some point? Just help them locate 31 worthy persons or families? What do they expect from the housing finance corporation?
>> the housing finance corporation has agreed to this transaction. That was done late last year.
>> to approve the transaction.
>> to approve the transaction.
>> they're just getting out in front of it a little bit, even though they haven't closed. I guess the only thing you would ask is that is is there any likelihood at all that for some reason they couldn't close because if that happened, then I'm sure that they would start rethinking about -- have they -- are they really signing up for 12 months harvey on this?
>> the tenants are signing up for six months' leases.
>> so six months. So what they would have exposed is a eximent of really six months if something happens so that they couldn't close in November, then they might start looking at this thing a little closer.
>> I think what they have expressed to me, american housing foundation, and joyce hefner from family elder care is here for any questions you might have of them. But what american housing foundation has said they are a 501(c)3 501(c)3 orks, so they have said we want to make these units available whether this closes or not. If it were not to close, it's really -- we wouldn't be involved in it. There wouldn't be any reason for the corporation to be involved in it and they could execute agreements with other entities or make it all available to family elder care, whatever, but since it is expected that -- and hoped that this transaction closes, then part of mine is to kind of --
>> I move that we accept it.
>> second.
>> but Travis County's commitment is is that if the corporation in florida issues the bond as the county where some of the units are located, we would basically approve the issuance by the florida corporation.
>> yes.
>> I had forgotten that the law requires a local corporation.
>> right.
>> and family elder care will put the 15 units to good use and part of that motion is is not only to approve the use by family elder care, but to seek out other nonprofit whose can use the --
>> right. And if any of the board members want to suggest or anybody that they want me to contact or them to contact, just let me know.
>> my personal is safe place, but that's personal.
>> I will contact them.
>> you seconded it?
>> okay. Let me ask this question, judge. When will the other 16 -- the other available units, the remainder of the 31, when is the time frame to actually get those on line? Do we have to do something before the November closing or after the November closing? Or does it make a difference?
>> my information from american housing foundation is those are available. It's really finding an -- family elder care didn't want to take on more than they could handle, so it's really finding another organization, bhowrn, that -- one or more that, can make good use of these units.
>> secondly -- secondly, when a lot of these things came about, we did hash out and try to look at the scholarship aspects, the monies that may be made available through scholarships. Do we know or has anyone told us after closing in November if that ends up happening how long it would be before we are able to realize the scholarship potential of this particular situation?
>> my expectation is that if the bonds close at the closing table, the corporation would receive the initial payment which is is $300,000 as I recall to fund the scholarship program.
>> right after closing?
>> at the closing table, part of the closing transaction.
>> technique okay. I just wanted to keep everything --
>> any more discussion of the motion? All in favor? That passes by unanimous vote.
>> thank you all.
>> number 3 is is to consider and take appropriate action on funds available in fy 2007 for potential transfer to Travis County.
>> and I've provided some backup information and my information to the board is is that the -- Travis County housing finance corporation has in excess of $50,000 that could be transferred to the county. My suggestion is is that these resources remain in the corporation for housing projects.
>> so move.
>> second. Housing and any other appropriate projects.
>> yes, sir.
>> which would be health facilities, if there is like a health facility project under that corporation, it would be -- I do think we ought to do this too because that was the mission and purpose of the corporation early on. We recently have kind of been transferred into the general fund. We ought to leave it there one year and see if at the end of the year whether we think it was better than just for the general transfer is my thinking. Any more discussion? All in favor? That passes by unanimous vote.
>> move we adjourn.
>> close with three soft balls, mr. Davis. All in favor?
>> did you call up the health corporation?
>> not yet.
>> that passes by unanimous vote. Let's adjourn the housing finance. There went that one. Now let's call to order the Travis County health facilities development corporation. One item, consider and take appropriate action on funds available in fy 2007 for potential transfer to Travis County. Move the Daugherty philosophy for health facilities.
>> second.
>> 300,000.
>> yeah, 300,000. The beauty of it is any time midyear we can move to take it from the corporation, unlike the Travis County budget. And --
>> right. And we have placed those funds in allocated reserves so that they would be there.
>> stay in the corporation until --
>> this whole health related thing is potentially shroas sieve also. Explosive also. Any more discussion? It's a larger amount compared to housing ffnlts all in favor? That passes by unanimous vote.
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Last Modified:
Tuesday, September 5, 2006 4:29 PM