Travis County Commissioners Court
December 5, 2006
Housing Finance Corporation
Now let's call to order the Travis County housing finance corporation, three items, the first of which is to consider and take appropriate action on request to approve resolution authorizing the I object wans of Travis County housing finance corporation student housing adjustable rate demand revenue bonds, series 2006, college houses project, authorizing the execution of a loan agreement, trust indenture, bond purchase agreement, and other documents incident to the issuance of the bonds appointing an authorized representative and approving other matters in connection therewith.
>> good afternoon, judge, this is cliff blunt with naman and howell. We had the public hearing this morning. I just passed out to you a revised bond resolution. As I stated this morning, all of the bond proceeds will be used for the new construction at 1905 and 1907 nueces right here in Austin. And this is just approval of the bond documents, very standard transaction. We received a rating letter last week and the bonds will be rated double a minus, which is the same rating as the bank issuing a letter of credit. Ladd patillo, I talked to him this morning. He couldn't be here. I think he was cleaning up some matters on a bond issuance in other capacity for you all this morning, but he felt good about the transaction and recommended your approval. All the documents are in order. And I don't know if you've got any questions about the project or the documents.
>> let me add that there will be some income restrictions on the students that college house has not had in the past. So there will be compliance oversight that we will have to do on this property, and the issuer fee that will -- I think the closing is supposed to be December 21st, and the issuer's fee is about $54,000.
>> do the esteemed, illustrious members of the Travis County Commissioners court have any issues with this?
>> they did not indicate so this morning.
>> second.
>> Commissioner Gomez moved approval. Discussion? All in favor? That passes by unanimous vote. Good luck to you.
>> thank you, Commissioners.
>> number two is to consider and take appropriate action on request to approve 2006 compliance audit for tanglewood forest apartments.
>> good afternoon, Commissioners. We're beginning to go through our cycle of compliance audits. The purpose of the audit is to ensure compliance with the regulatory agreement. The regulatory agreement sets requirements of the amount of affordable units that each development has to provide. For this specific apartment development it was tanglewood forest apartments, which are locate loeked off slaughter near brodie. They are required to have at least 20% of their units for tenants at or below 80% of the Austin median family income. And they're also required to have at least 90% eligible tenants which are at 120% of the Austin median family income. This property, again, it was located in southwest Austin. After reviewing -- they have a total of 364 apartment units with 20% requirement they are required to have a minimum of 73 units to the low income. We -- on the last report that they file, they actually have 167 stated as low income tenants. Staff reviewed 45 low income tenant files and found no compliance issues whatsoever. They do have some minor record keeping issues, but overall we found the records to be maintained and in good order. Just for your information, their one bedrooms right now, which are 656 square feet, lease no 515 and the two bedroom, which is 1415 square feet lease for 750. Again, staff found no compliance issues and recommend for the board to approve the compliance audit and the cloation letter. -- the closing letter.
>> move approval of the compliance audit, the closing second. Closing letter.
>> second.
>> does the closing letter thank them for doing a good job?
>> no, but I can give a phone call.
>> make it nice. Discussion? All in favor. That passes by unanimous vote. Number three is to consider and take appropriate action on request to ratify changes to the deed of trust and real estate lien note dated November 28th, 2006 with Austin habitat for humanity.
>> there's a reason why we use ratify in there, isn't there, mr. Davis?
>> sir?
>> there's a reason why we use ratify.
>> that is right. The board approved this transaction on July 11, and at that time the board approved a deed of trust and a real estate note, and the transaction closed on November 29th, a day before the transaction I realized that the lots were different than what approved on July the 11th, and president Biscoe authorized the release of the fund with my assurance that these were lots on the same street. They were the same size lots. It was really a trading of apples for apples as far as the value of the lots. That they had -- that a new deed of trust and real estate note was executed before the closing. Of course, were filed and our attorney, cliff blunt, reviewed those documents. And that the closing instructions had been sent to me in mid November, but I had not reviewed the documents until I was getting the authorization for the release of the funds, which was the day before closing. Didn't realize that there was this discrepancy and that we needed to obviously correct it because the document approved didn't -- wasn't the same lot.
>> what happened to the other lots?
>> apparently they were sold in the interim. Michael willard, who is the executive director of Austin habitat, is here and he could kind of explain kind of how this happened. As you know, there's a long time between July 11 tz and November 29th, so it kind of took them awhile.
>> what happened to the other lots?
>> they were swapped out. The developer is retex homes and those were lots that they had already started working on and so we already traded out with other lots in that same subdivision. So it is clearly an appear apples for apples transaction here.
>> this was the day of closing -- the day before mr. Davis sent me an e-mail. The day of the closing he and I chatted, and in few of the facts I thought the board would probably go ahead and approve it anyway. So rather than hold up the closing, I told mr. Davis to just go ahead and close on them. But it's roughly the same size lots on the same street. The other lots became unavailable.
>> right, they became unavailable and we're still building the same number of houses in that subdivision.
>> and the purchase price that they paid for the eight lots was 187,000. The corporation has a first lien position. Of course, our investment is 100,000, so the first lien is on lots that, of course, are valued a lot more than $100,000. And the first lien is there so-- it's not released until Austin habitat fulfills their requirement to build the homes and sell them to the appropriate home buyer.
>> I just assume the court would look at it and probably approve it anyway. So I said no reason to hold off on the closing. Questions?
>> move approval.
>> second.
>> and that's to ratify a behavingly the closing. -- basically the closing. Anything further?
>> no.
>> all in favor? That passes by unanimous vote.
>> move adjourn.
>> second.
>> all in favor? That passes by unanimous vote. Thanks for coming down. Keep up the good work building those houses out there for families in need. Just as a reminder, on Monday night there is the campo monthly meeting for December, and three members of the court are on campo, so they will be there.
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Last Modified:
Wednesday, December 6, 2006 9:34 PM