Travis County Commissioners Court
April 3, 2007
Housing Finance Corporation
We do need the Travis County Housing Finance Corporation, so I call it to order at this time. First item is to consider and take appropriate action on results regarding negotiation of bond counsel fees and contract with vinson and elkins llp, including direction as to necessary follow-up action. Mr. Davis?
>> good afternoon, harvey Davis Davis , manager for the corporation. And in your backup I do have the results of the negotiations with vinson and elkins on bond counsel fees, and as I said in my back jerusalem memo, I do recommend that -- backup memo, I do recommend that we formally end the negotiations and negotiate with the next most qualified firm on the list. Representatives from vinson and elkins are here and we'd be happy to answer any questions you may have.
>> okay. Now, the way I understand the law, mr. Blunt, if we authorize staff to go to the number two firm on the list to negotiate, then those negotiations are done with the prices from the number one firm in mind. Is that true?
>> I believe the way the statute reads is that if an acceptable and reasonable price cannot be met by the most qualified firm as determined by the corporation, then you would end those negotiations and negotiate with the second most qualified firm. And obviously I think that would be part of the --
>> the second most qualified firm gives us a price quote higher than the first, there by shattering our expectation, then are we able to go back to the first one?
>> that I did not check on. Ky get you an answer, but I do not know how the statute reads once you break off negotiations with the most qualified firm, if can you then go back to them later.
>> I can wait until next week to get the answer. Any comments?
>> only if have you questions, judge.
>> move that we approve staff recommendation to authorize about Davis to go to the second most qualified firm to negotiate as to price.
>> second.
>> and report back to the board next week.
>> director Davis seconded that.
>> so harvey, obviously your opinion on this is predicated on something. You know what you're doing in this arena. I mean, I can see where a firm is interested in -- you can't make dough off of it. I can see why they say it's not something that we can make work. Although there's a lot of difference between what you're thinking we ought to be able to get this done for versus what v and e is able to do it for, I've got to respect your expertise in this thing. But it does -- it not even close -- it's not even close enough -- something is a disconnect here. You just can't be this far off. I realize that everybody has a different model for what it costs to transact a piece of business, but wow, it's pretty interesting to me that there would be that much difference. But again, I don't know, maybe somebody has goanld wall or whatever and it's just the cost of doing business for them. So I've got to respect where you're headed here. It certainly is something that we need to do given the fact that there's that much money difference. Is there any quick explanation? You can tell I'm wanting to ask you a question. You figure out what it is.
>> and my recommendation is based on the survey that I did in calling other issuers and what they have been charged on these single-family bond issues.
>> the walls at v and e are newly painted, but not made of gold. I can attest to that.
>> it doesn't leave us much wiggle room here.
>> and I also say that when we did the rfq and we reviewed the applications of the other firms, there were seven firms that replied to the rfq, I mean, they were very qualified, so it wasn't -- certainly if it was that we were going down the list to another firm that didn't have the -- a very -- lawyers that have lots of experience, have done lots of these deals, then that would be a different story, but the next several firms on the list have a very good track record, good recommendations.
>> well, this time next week we will know what price is offered by the second most qualified and be able to compare the two.
>> yes, sir.
>> so that takes the abstract nature away.
>> judge, so how do we handle this? Obviously everybody kind of knows now what the asking price is, so to speak, and if our next one is within 5% or something of this, I guess we'll make that determination next week, but obviously the second player knows what they need to get under. It's for the like this stuff is not out in the public now.
>> I think part of that answer will rest on the answer I find to judge Biscoe's question.
>> plus we know what they gave in response to the survey about a year ago. That's not to say they're locked in at that price, but we'd be surprised if they're dramatically higher, wouldn't he?
>> I would be, yes.
>> I'd be right along with you.
>> any more discussion? All in favor? Show -- that passes by unanimous vote. Thank y'all very much. Stay on standby, we never know what the price will be.
>> always willing to help.
>> we do expect y'all to continue as the county's bond counsel. All right. Number two is to consider and take appropriate action on request to sponsor training for allen rodnick at the Texas department of housing and community affairs home buyer education training course.
>> and I would like to introduce allen rodnick.
>> how you doing?
>> we'll make a little presentation about why he wants to volunteer to do this training, but mr. Rodin this case, who I've known for several years, is -- works for dhi mortgage, one of the larger mortgage companies. He's their liaison for affordable housing programs in the company, so in other words, he informs mortgage lenders about home buyer assistance -- down payment assistance and mortgage loan programs that are being offered by the state or local government entities. And he's a member of talfa and participated in some conferences that I've been to. And he wants to go -- he wants the corporation to sponsor him to be a trainer of trainers for home buyer education, and this training course is given by the Texas department of housing and community affairs. They're having a one week course. I think you have to take an exam. And then you're a certified trainer for home buyer assistance. And so what he's offered to do, if the corporation sponsors him, is to give four quarterly classes to Travis County employees about the home buying process. And as I've mentioned in my memo, there is -- I get a lot of calls from Travis County employees and a lot of responses whenever we do surveys. So there is a great interest of Travis County employees to buy a home and these county employees are very good candidates for these types of programs because they usually have a stable job and income that fits the categories for this assistance. So if it's okay with you, judge, I'll let allen explain why he's motivated to do this.
>> thank you for your time. I appreciate you having me in here, harvey. Judge and comissers, I guess I'll just start out by telling you a little bit about myself. I do work for dhi in affordable housing and we're national lenders, so I'm very familiar with a lot of programs around the country, first time home buyer bond programs particularly and the dpa programs. And in my job I do a lot of training within the company, so I find that there's a real hunger for the knowledge, but given the market these days with the subprime lenders going through what they're going through, there's roughly I heard this morning 17 percent of new century business is going into a default. A lot of the defaults, according to the mi companies that are studying this, could be be avoid if they had home buyer education in place. The mi companies are offering reduced rates to homeowners who are -- prospective home buyers who get the certificates. The course is a lot of different providers. The gold standard is the courses offered by neighbor works, the neighbor works organizations around the country. They do a lot of work with nonprofits that are busy, involved with community development. So they're the gold standard. H.u.d. Accepts these providers. So this certificate would be something that would allow a homeowner to -- if it was a requirement for the mortgage, to actually meet that requirement. If I as an individual went to neighbor works -- you probably want to know what's in it for me. I will pay about a thousand dollars for this course, but through your sponsorship, through your gracious sponsorship, I'll pay like $125 for the course. In return I'll provide Travis County employees with free home buyer education for the next year. We'll do it quarterly. And possibly -- I just wanted to float this idea. One of the things regarding the bond program, I was discussing with harvey, if you were to -- say, for example, if towrp sponsor a home buyer education training as Travis County, the people that came through that training that were qualified for the bond program could be referred to lenders with the understanding that the lenders would qualify that individual first at the bond program. Typically as a mortgage company of look at the bottom line. If a lender or somebody comes to you off the street, you're going to -- realistically you give them the program that fits them the best, but that you also make money off of. And I think as we know, the mortgage companies are not altruistic organizations as a rule. They're out to make a profit. So the mission of the housing corporation could be better served, I think, if they had more control over the potential customer. Are there any questions, comments?
>> what if you had these four quarterly sessions and no county employees show? Or do we think that's so unlikely, it won't happen? If do you this, do you commit to conduct the necessary outreach to inform county employees of this training opportunity?
>> yes, I do. And the value of it?
>> yes, sir.
>> so what you were saying is if you arrive with this certificate in hand, you're better off than arriving without it, but needing the training later on? If you're a county employee?
>> yes. Definitely -- it would give me the program materials that are being used all over the country now that are owned by neighbor works and it would allow me to give that material, give that content to the people that come to the training course.
>> how many folks are in the county as far as employees that have taken advantage of a situation as far as Travis County offering these particular incentives and other thing and taking advantage of them? Like the morning that are set aside to -- for their use? How many folks are we talking about, ballpark?
>> I think in our mortgage loan program -- I haven't kept track of the number of county employees that end up closing, but I know it's several. I do know that when I apply for grant applications for the down payment sis sense fram -- assistance program, we are required as part of the grant to do a survey to document that there is demand for this assistance. And I always do the survey by asking county employees to respond, and I get 50 responses. These are people that take the time to fill out a form, disclose their income, sign it and send it back to me in response to a survey, and that indicates certainly a fairly big desire to become a homeowner.
>> so we think there will will a good number of county employees interested in training. Otherwise you wouldn't be here.
>> that's right. That's right.
>> the corporation's investment would be $125.
>> move approval.
>> second.
>> discussion of the motion? All in favor? Show a unanimous board. Thank you so much.
>> thank you. Thanks for thinking outside the box. Number three is to approve board of directors for the meeting of March 13th, 2007 much.
>> move approval.
>> discussion? Favor 1, that passes by unanimous vote. Number four, consider appropriate action on center for child protection in Travis County for a financial contribution to the capital campaign for the kozmetsky for child protection. We do have representatives here from the center.
>> we do.
>> did all of us get our booklet? And y'all met with some of us and we knew that the center is under construction. The capital campaign is for how much money.
>> $9.1 million.
>> and how much money do you need right now?
>> as of this date we are about $250,000 toward our goal.
>> and what are you asking the corporation for?
>> we'd like to submit a request for $100,000 from Travis County.
>> now let me let you make any additional comments we'd like to make today.
>> I'd like to tell you a little bit, first ask if there are any questions about what the center is and what the center does. I will say at the last moment before he sat before you that we are currently serving all police, law enforcement jurisdictions with Travis County. Although we're not yet doing it for the Austin police department, we are currently interviewing children of all aing who have been referred to us by law enforcement or child protective services because of allegations of sexual assault, serious physical injury or the child has witnessed a violent crime. We are here because we have outgrown our space and our board has been raising funds to build a new center that would allow us to serve children from birth to 18 years of age in terms of allegations of sexual assault. And to provide more services. We are on top of each other. They're almost -- there's almost no one at the center that has an individual office, and we've got stuff stacked in the hallways. Currently our clinic is run with dr. Beth nowart who is with Austin children's ching. And she says children there who require a sexual assault exam and have been referred by law enforcement or child protective services. We as a condition of requesting this would like to name the medical area, give that name, Travis County, along with the other things that we've agreed to do in terms of support of this funding. And I'd also like to say that in addition to those other things that we've recounted in previous sessions, we would like to make that building available for collaboration with Travis County when there's a need to do medical outreach for children in the east Austin community and the rest of Travis County who might need medical or preventive services.
>> now, before we had the center, how were these investigations and I guess investigation gathering, interviews done by law enforcement agency?
>> well, most of the time I think the Austin police department had two victim service counselors who were committed to working with children, at least on a part-time basis, and then Travis County I believe contracted with private therapists. Unfortunately back in the late 1980's, there were cases around our nation that showed that to be a very bad way of investigating these cases that, it's not a good idea to have mental health therapists questioning children about a crime and about abuse. You need an objective interviewer who's not there in a therapeutic role. So currently we have five forensic interviewers, most of them are bilingual, who do that interviewing. So the county paid for that. Since that landmark case in california in the late '80 '80s, around the nation -- our legislature has actually added and described what a children's advocacy center, which is what we are, should do, with whom they should collaborate, and that this is a better way to serve children who have been victims of crime. And I might say, judge, that I think around the nation, at least in 2005, for every dollar I think that centers around the state of Texas got from government, they were able to add three more dollars to that. So it's been a great partnership for children and for government.
>> do I recall too that before this there were multiple interviews of children whereas at the center where there's like one round?
>> yes. Our district attorney estimated that children were interviewed as many as 15 times, and so we currently for the vast majority of our children now require just one forensic incident viewer. Instead of that child having to move all over the city and the county to get services, all of the services, including law enforcement, come to the center and we currently have a full-time assistant district attorney who resides on site and staffs the cases as law enforcement comes and goes.
>> and there's a dd line for this -- deadline for this last 250,000?
>> yes, sir. We've had a fabulous opportunity with a foundation who has challenged us that if we're able to complete our campaign by April 12th, we'll receive $400,000 from that foundation.
>> when they chatted with me, my notion was to take half of it from health facilities, half of it from housing finance for the $100,000. I certainly hate to loose the match -- to lose the match. The other thing is they raised more than nine million. This is one of those programs that I guess has been on 32nd street for a long time.
>> forever.
>> 15 years.
>> if there's unreadiness -- the reason I went ahead and put it on this week, if there's unreadiness we'll have another week. But --
>> we can move forward.
>> then my motion is to approve the request for $100,000 of funding, half of which will come from the housing finance corporation, the other half from health facilities. Cliff does agree that health facilities would be appropriate for the health part, which typically is a lot more strict than the other.
>>
>> [inaudible - no mic].
>> we'll have to do in next week because I didn't post it.
>> we will ask the board of health facilities development corporation to work with us on this, but the motion would be for half of it to come from housing finance corporation. Is that okay for the second?
>> yes. And you said you needed it before the 12th. 12th.
>> yes, sir.
>> so we will be meeting again on Tuesday, which is right up under the wire, but at least it's before the 12th.
>> thank you, sir.
>> discussion? All in favor? That passes by unanimous vote.
>> I can't let this moment pass without saying on behalf of the children of Travis County, thank you. I think we'll all be safer because of that.
>> on behalf of the children of Travis County, thanks to you.
>> thank you. We appreciate all you do.
>> we'll have you at the grand opening. Thank you.
>> thank y'all. Let us know.
>> there's a motion to adjourn.
>> second.
>> all in favor? That passes by unanimous vote.
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Last Modified:
Tuesday, April 3, 2007, 9:34 PM