Travis County Commissioners Court
February 5, 2008
Housing Finance Corporation
Let call to order the Travis County house finance corporation two else the, first of which is, one, to review performance of the 2006-2007 down payment assistance program and take appropriate action to improve similar programs in the future.
>> good morning, I’m harvey Davis, manager for the corporation. The 2005 american dream down payment initiative program ended on December 31, 2007. I wanted to review what we were able the to accomplish with the program. The program design was to originate 30 loans to benefit first time home buyers in Travis County, 18 to those below the median income, and 12 loans to a family at or below 60 percent of the you a area median family income which is $42,650 for family of four. The total assistance per family was $8,750. The loans had to be located in Travis County but not within the city of Austin because the city of Austin has a similar down payment program. The total budget for this program was $327,675, of which $214,500 came from the grant from Texas department of housing and community affairs. The corporation had a match grant of $50,000, which was the first time that we have offered a cash match in our down payment assistance program. The program was very success ifful. We were able to originate 29 out of the 30 planned loans. The average income of the family was $40,344. The highest income of a family was $60,606, which had to be a large family. The lowest income of a family was $24,660. We made 23 loans to families below 80 percent, and we made six loans to families below 60 percent. So it is much easier to successfully make loans to families below 80 percent than 60. A family below 60 is very hard because they have to have almost no debt. If they have a car loan, they would not be able to qualify for the program, for example. Of the 29 families that we were able to assist, 11 were african american, 11 were hispanic, 6 anglo and one something would are not sure of. The average cost of a home was $115,031. The highest cost of a home was $14--45, 10. We were able to assist families that bought, four families that bought a home that cost less than $100,000, which is a challenge in this area. Most of the homes, 17 of the 29 were in zip code 78724. There were eight homes that we made in manor, one in dell vail and three in Pflugerville. You with see all were in the eastern section of the county.
>> 78724 generally is what area?
>> that is sort of northeast Travis County.
>>
>> [inaudible]
>> right. This program was, the assistance for the home buyer was in the form of a forgivable loan. If the home buyer remains in the home for ten years, then the $8750 is totally forgiven and it's forgiven at the rate of ten percent each full year that the home buyer remains in the home, it is forgiven. We have actually had one home buyer repay their loan.
>> hit the lottery?
>> they didn't inform me of why they were selling, but they did sell it. He had only remained one year. So ten percent of it was forgiven.
>> if they pay it off lump sum, that does away with the forgivable loan. The loan is forgiven. They still have to stay there ten years.
>> no, if they, well, had in this case the home buyer left between year one and two. So they had to pay back 90 percent of the loan. Then we released the lien. In fact I did bring this before the board the approve that release several months ago.
>> .
>> okay.
>> we do have an ongoing program now that goes to October of this year. And we're in the process of preparing a grant for, hopefully some more funds to have a new program. So that is, again, we're very happy with the success of this program.
>> harvey, you mentioned that the program is greatly out lies by single parents. How many of the 20 were female headed outholds--households?
>> I know that the great majority were. I didn't go down and count. Most them were female. I do know their names.
>> wonderful.
>> that does it for one.
>> yes, sir.
>> number two is to consider and take appropriate action on request to approve invoice from chapman and cutler, llp, to provide arbitrage rebate calculation services for the single family mortgage revenue bonds series 1997.
>> the this is a matter I brought before you in March of '07, this arbitrage rebate needed to be done for the period of January 30, 1997, through January 30, 2002. And you authorized to spend up to $5 that you. The invoice was $4,000. Conclusion was we did not owe any arbitrage, so I do recommend that you approve paying this invoiceso move.
>> second.
>> discussion?
>> congratulations.
>> good luck.
>> all in favor. That passes by unanimous vote. With director Daugherty absent.
>> I will add that I did check with the trustee, and there is sufficient funds in the account for these series 97 bonds to cover the arbitrage, but we will get that money someday down the road.
>> thank you, that's good news too. Motion to adjourn by director Gomez.
>> second.
>> seconded by director Davis. All in favor. That passes by unanimous vote. Thank you, there being no further business today, we're out of here.
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Last Modified:
Wednesday, February 6, 2008 8:09 PM