Travis County Commissioners Court
February 13, 2007
Housing Finance Corporation
Now let's call to order the Travis County housing finance corporation. First item is to consider and take appropriate, on the following: a, issue a request for quawl for indications for bond counsel single-family bon programs.
>> good afternoon. Mar I have Davis, manager for the corporation. As you directed, on January 23rd I have a request for qualifications for bond counsel. I did receive input from various parties, from our attorney, from purchasing office. I worked with them. From mark o'bryan, ladd. And so this request for we're proposing to send out to seven firms that are listed in the backup. These are firms that have vast experience with being bound counsel for single-family bond programs.
>> why wouldn't we just send this out -- when we publicize this, it is pub la sized generally for the world of interested firms.
>> well, we could publicize it or we won't really have to publicize it.
>> why wouldn't we, since we knew of the seven, notify them directly, I guess? I would have an open invitation.
>> okay. I have prepared an ad -- it's not in your backup, but an appropriate ad that I've cleared with the purchasing office and we could do an ad in addition to notifying directly these seven firms.
>> and I put it that way because I do know there are a lot of small firms who do quite a bit of housing stuff. And twh we try to determine level of expertise, it kind of is based on issues that you have been bond counsel for, right?
>> that's right.
>> the number of them, the size. How long ago it was.
>> right.
>> whether we can ascertain any sort of problems or whether it's all been fairly smooth. Do we ask for letters of recommendation or I guess we check references if we need to?
>> yes, we ask for references and we ask for issues that they've had in the past five years, such as --
>> I don't want to overload us with work, but it does seem to me that if the firms that actually read the selection criteria will know that the firms that we're looking at have done quite a bit of work in your area. So if you're planning a start in the housing bond business, this is not for you.
>> that's right.
>> unless you hook up with one of the large ones. How does the board feel about that?
>> personally, I'd just as soon that it was those six or seven because there's enough ready information on all of them knowing that they've got all of the credentials. If it's not going to be a lot of work where all of a sudden you've got a lot of folks that you have to do a lot of background on, which is -- wasn't that kind of your thought there, harvey, that if you just open it up for any and everybody?
>> actually, my impression is there are not a lot of firms that do -- that do act as bond counsel on single-family bond programs. So I don't think -- I think if we do an ad, of course, we make it known and to a much wider audience that we're seeking application for bond counsel,, I wouldn't be surprised if we had additional submissions beyond these seven that we would contact directly.
>> I'd be interested to know.
>> I know of two or three who have contacted me over the years. Whether or not they submit a proposal is is left up to them. I feel better about saying we have an r.f.p. On the street for this. Read it carefully and if you're interested, make a proposal. I'm not on the selection committee, you I know they'll be fair and subjective. That's my view on it. But I do agree I don't expect droves of respondents. But I would be real surprised if we don't get one or two or three mobile these seven.
>> and I don't think that's too much work on us to submit that. As I said, I have worked on that. We sort of talked about whether to recommend doing it or not.
>> I'm second that.
>> and it gives all of us a little cover in the future because two years from now you'll be somewhere at a reception and someone will ask you, who does your house the stuff? Why is it that you don't give firms like me an opportunity?
>> you had the opportunity.
>> yeah. We issued an r.f.p. Back in 2007. And did you respond to it?
>> so if we get into some kind of issue with i.r.s., will they defend us also? Will that be part of the rfq?
>> we have used a tax firm out of washington, d.c.
>> so they wouldn't have to do -- this firm wouldn't have to do that?
>> one of our single-family programs was examined by i.r.s. And it was a couple of years it took. Cliff blunt actually handled the audit. Fortunately it was a no change audit. We came out very clean.
>> we had some old expired authorization, add that to new stuff and there was new and didn't tax consequences. And we used -- what the washington, d.c. Tax firm? I think vin son and elkins recommended them?
>> I don't recall that.
>> I recall it because their hourly billing rate was much higher than I'm visualizing them right now. This is like standard housing issues.
>> so in case some kind of i.r.s. Question came up, then we would hire somebody else to take care of that issue.
>> if cliff and vinson and elkins can't do. That's the good thing, we have two lawyers on board anyway. Cliff does a lot of the housing stuff and the housing finance corporation and vinson and elkins is our bond lawyer for the county and they end up doing a little work for the corporation for an hourly fee. So is this the kind of routine issuance work that we're focusing on, right, mr. Davis?
>> that's right. Soirks what about the fees that we charge? Are those going to be considerably less than thear paying?
>> that's what we'll see. Mr. Davis and I think so. Which is why this is --
>> can we write it into the rfq?
>> we ask for the fees, the rfq gives them the ability to give us fees and various rates, either an hiewrly rate or an -- an hourly rate or an amount per bond, per thousand bonds and based on the size of the issuance.
>> we don't give them a range.
>> we tell them you can give us fees in these different manners.
>> and that will be part of the criteria in other ways.
>> right.
>> the ones you have given us in the past have been significantly lower than we have been paying, which kind of drives this. For the standard stuff, if it were sort of unusually complicated, you could sort of understand paying significantly more. But now, in truth, we will know what we can get when we see the proposals.
>> yes, sir.
>> so this is an opportunity for us to see that as well as other firms to show us what they can do.
>> my only recommendation is to broaden it a little bit so that it won't be just limited to these seven that we named specifically here. I agree with you, I don't expect a whole lot more, but maybe we'll get another, maybe not.
>> I'll second that.
>> that's my motion. Any discussion? All in favor? That passes by unanimous vote. Two is to appoint a selection committee to recommend a bond counsel firm. And that was a small committee, right, mr. Davis?
>> yes, sir. We proposed that the committee be ladd patillo, harvey Davis, April bacon and ladd and April bacon have both said that they would be willing to seven on the committee. And we would use cliff blunt and bonnie floyd from the purchasing office to assist the committee to make sure that we do everything in a proper manner. And if you approve this process going forward, we would distribute the rfq's tomorrow and have a deadline for February 28th and come back to the Commissioners court. Our goal would be to come back on March 6th with a recommendation.
>> okay. And where might a copy of the rfq be pick up? If somebody's watching this and wants to know how can I get one?
>> they can call me at 854-4743 and I will be happy to send them a copy of the rfq. Harvey Davis.
>> questions? Move approval. Move approval of the selection committee.
>> second.
>> discussion? All in favor? That passes by unanimous vote. Director Davis is absent for the Travis County housing finance corporation meeting also. Item no. 2 is to consider and take appropriate, on the following: a, contract with cj jopling as consultant for the Texas department of housing and community affairs grant for home buyer assistance.
>> we sent an r.f.p. For the consultant on our home buyer assistance program. We had one person replay, and that's -- reply and that's our current consultant, cj, who I will say has done a very good job, been very helpful on our current program. And so I have attached and asked your approval for executing the contract with cj. Her charge would be a thousand dollars for a setup fee and then $375 for each home that closes. The program has this grant -- has a goal of 25 forgivable loans. Her charge is a little bit higher than the current contract she charged a 700-dollar setup fee and $250 per contract. This is a little different in that the 375 includes the inspection fee that we have to do, so that's $75, so actually her fee has gone up $50 per closing and then $300 for the setup fee. I think her fees are very reasonable. And even though she's gone up a little bit, it's an appropriate --
>> when it's all said and done, you think the increase is a net of about $50?
>> $50 per closing and then $300 more on the setup fee. The setup fee, is pays for things like, on each of things she has to send items on the state and then she has to send a packet to us, and this usually comes by express mail or by courier and copying costs. Each file is probably this thick. There's a lot of work involved in being the consultant?
>> move approval.
>> second? Any more discussion? We'll keep an eye on this and if we think at some point we're yoafg paying, we'll let you know. If we can't do anything this time, we will next time. But right now we think this increase is reasonable.
>> yes, sir, I do.
>> any more discussion? All in favor? That passes by unanimous vote. 2-b is an invoice for setup fee for consultant's contract. Is that what we just approved?
>> yes.
>> do you need another motion on that?
>> that would be helpful, I think.
>> so move.
>> second.
>> discussion? All in favor? That passes by unanimous vote. Program design for distributing grant fun, is that that $300?
>> no. This is -- we -- this is really the kickoff of this home buyer assistance program. We have the grant, it's set up, ready to go. Just a few things to point out that are different from the other grant, one is that we require the home buyer to pay the education classes of $75 and with the idea that when they close we would reimburse them of the $75. And my thinking is that we would -- after the closing we would send them a nice letter possibly from the judge with the $75 congratulating them and maybe with some more explanation of the assistance that they've received from us because that was one of the thing in the survey that we did on one of our old programs was that home buyers didn't quite understand the nature of the assistance they were getting from us. So that's one of the main differences in this program. And the current program, the amount of the grant, of the forgivable loans the home buyer receives will be $10,000, which is higher than the current program, which is $8,750. This program has 20 of the 25 loans are for families below 60% median income, which is a challenge. We've done seven in the past year of families below 60 percent, so if it looks like we're not going to make the 20 by this time next year, what I'll do is come back to the board and ask permission to try to amend our grant with the state to allow us to make more loans to people below 80%. We had to have this many nor to score enough points to be able to receive the grant.
>> last time we tried to notify income eligible county employees.
>> yes. And I would like permission to send on -- we get a public announcement, e-mail to all employees, and I would like to put this nms to notify county employees about this opportunity. And in the past we've had many county employees buy homes through our program. So the e-mail is very helpful.
>> 10 days after that can we notify the public sector employers to share this information with their employees?
>> yes.
>> but we sort of give county employees first shot? Once it becomes publicizeed, anybody in the world can come and apply, right? You don't have to be a Travis County -- you've got to be a Travis County resident at the time of application.
>> no, you just have to purchase the home in Travis County, but outside the city limits of Austin.
>> it has to be your homestead.
>> it has to be your homestead.
>> right. You have to be a first time home buyer.
>> okay. Makes sense to me.
>> and you have to stay there how long?
>> the loan is forgiven 10 percent a year. So if you sell your home after five, four years of living in the home, have you to pay back half the loan. The loan is zero interest, so there's no interest charged, on each of the loans, the corporation is contributing $2,000, so we have -- the corporation will have a lib -- a 2,000-dollar lien on each of those programs.
>> that's a good program. Down payment assistance of $10,000, zero interest.
>> right. And this program is like our current program, it requires the home buyer to combine this assistance with the state's bond program or the Travis County bond program or the state's mortgage credit certificate program, and this provides even more assistance for the home buyer and is a quality control for our program that the first mortgage is going to be an appropriate mortgage, it's not going to be a subprime, high interest type of situation. It will be at a fixed rate and probably below market.
>> if you were a realty agent, do you think that the -- your two-page memo would pretty much summarize the program?
>> well, it does a pretty good job of it. I do -- as in the past, I would like to send out a press release which will give a better description of the program. And we put the press release. We have a flyer that -- I think the flyer is in -- yeah, I have the flyer in the backup, and the flyer would be on our website.
>> the one question that stands out for me is approximately how much income is 60% of the federal poferlt guidelines? It just needs to be in the information because -- I don't know that the average realty agent would know that?
>> it would be in the press release and 60% for a single person is $29,880. So that's doable.
>> family of four how much?
>> for a family of four it's $42,660. Where the 60% really works is if have you a single parent and like for a single parent, $34,140 and you probably can afford a home if you've been really good with your credit and not accumulating too much debt. And this works real well.
>> sound good to me. The challenge will be to find 20 that meet the income eligibility guidelines.
>> right.
>> I have a suggestion on the flyers. A web page where they can get more information. But see there's a website for getting the list of approved lenders, and then there's your e-mail, but perhaps to have a more anonymous way to look at the additional criteria and get more information. Is there more information on the website?
>> yes, it is. And that's a very good idea. I'll add the county's website. And it is on the website. If you go to the website and look under department, you will find Travis County housing finance corporation and there is a lot of information about our program.
>> [inaudible - no mic].
>> and our current programs has done very well. It's -- it's 30. We've closed on 24 out of 30 and our grant period ends this October. So we still have time on it.
>> that's the second best news I've heard today. Move approval of c.
>> second.
>> discussion? All in favor? That passes by unanimous vote.
>> move adjourn.
>> thank you very much, mr. Davis, for your dedication, hard work, etcetera. All in favor? That passes by unanimous vote. The other meetings that we posted have taken place and there are a series of public hearings listed on page 12 that involve cdbg funds.
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Last Modified:
Wednesday, February 14, 2007 8:07 AM