Travis County Commissioners Court
April 15, 2008
Housing Finance Corporation
Now let's call to order Travis County Housing Finance Corporation 1.
consider and take appropriate action on request to approve payments to deloitte & touche llp for audit of the component unit corporations.
good afternoon, I'm harvey Davis, manager of the corporation.
I'm here with -- with mike gonzalez.
and the -- the deloitte invoices for $7,224 and the invoice is allocated among three of the corporations.
I think my backup says four, but it's three.
and based on the ending fund balance at 930.07.
so the amount that the housing finance corporation I'm asking you to approve is 3,531.11.
>> move approval.
>> second.
>> discussion?
all in favor?
that passes by unanimous vote.
item no.
2 is to consider and take appropriate action on results of compliance examination of metropolis apartments project.
>> good afternoon, my name is mike gonzalez, financial analyst for the corporation.
on March 28th, 2008, staff initiated a compliance audit of the the apartments, 308 unit apartment complex located in southeast Austin on 2200 south pleasant valley road.
this actually represents the third examination or compliance examination we have done of this apartment development within the last year.
we have had two subsequent examinations that happened pretty close to each other as a result of non-compliance issues.
at the last time this was brought forward, it was agreed to go ahead and do one in March as a follow-up examination.
the examination was completed and they are fully in compliance with all of the requirements of the regulatory agreement.
they do meet both the low income qualifying and the eligible tenant requirements of the regulatory agreement and as a side note I would like to thank the board for their help in ensuring compliance, management said that last time they came down here they were on so intimidated they want to do everything possible to make sure they don't have to come down here.
thank you for assuring compliance on our permit holders.
staff recommends approval of the nearly and the audit letter and requests authorization for us to submit an invoice to the property management.
>> move approval of staff recommendation and express our appreciation to them for cooperating with us.
>> second.
>> discussion?
all in favor?
that passes by unanimous vote.
3.
consider and take appropriate action on request to consent to transfer of partnership, management, membership, property management and certain other related rights and interests of southwest housing development company, inc.
and brian and cheryl potashnik related to heatherwilde villas apartments to cascade affordable housing llc and its affiliates and the release of southwest housing development company, inc., brian potashnik and cheryl potashnik, and their affiliates as guarantors.
>> good afternoon, cliff blunt with nay man, howell smith and lee.
this was actually on the agenda last fall.
the transfer of these two particular apartments was approved to cascade.
they have subsequently come back and asked for consent for release of the guarantors because the cascade entity is going to guarantee all of the obligations of the potashniks under those old guarantees.
with that change it seemed appropriate to bring it back before you and get official approval of the consent.
I've asked for, we have not received it yet, I have asked for the bond holders who are really the parties at risk here to consent to our release of the guarantees, so my recommendation is if you are inclined to approve it that we approve this but that -- that mr. Davis or I not be authorized to deliver the consent letters apartment release letters until I receive the consent of the bond holders would be my suggestion.
>> so I want to go back to when we discussed this a year ago.
what was the -- remind me and tell me what was the situation, especially -- this is the folks out of dallas.
>> yes, sir.
>> there was some things that were going on a little bit.
can you remind of us those things that were going on --
>> sure.
>> just kind of fill us in on the whole year has gone by of course memory kind of slips away sometimes when that much time goes by.
>> sure, I don't have all of the details, but the potashniks have been, I assume they still have, but have been dismissed.
they are indictment for various activities related to affordable housing activities in the dallas area.
had nothing to do with any of the projects in Austin or Travis County that they are involved with.
I assume because of that there's a transaction where cascade, a very large affordable housing developer and owner has contracted to purchase all 53 of their properties in Texas and one of their properties in colorado for a total of 54 properties.
and to come in and begin to own those and operate them.
that was what was approved last fall.
just that transfer.
so this is additionally a release from the financial guarantees.
on a go forward -- did not release anything that exists now.
just a release of any guarantee obligations in the future or after the date of the closing of the transaction.
>> so without approving this, the new company will not be guarantors necessarily?
>> well, I believe the new company would be guarantors.
it's just a matter of releasing the old guarantors, who I believe are just the potashniks individually, the owners of southwest housing or the primary owners.
>> the recommendation is that we approve this can -- conditioned upon the bond holders release.
>> ultimately if there's not enough value in the apartments to pay off the bonds, the bond holders are at risk.
if they have consented to this release, there's really no liability to the corporation.
>> do we know where the indictment has gone with these folks since last year?
>> no, sir.
I'm not involved in that --
>> where is that right now?
>> I'm not involved in that.
all that I know is what I read in the newspaper when it came out approximately a year ago.
it was early last summer when the indictments were handed down, but I'm not involved with that, don't know exactly where they are.
>> what it is.
okay.
thank you.
>> so this request comes to us from whom?
>> the people that I've been communicating with have been the lawyers for cascade, which is the group that's purchasing the apartments.
>> okay.
questions?
>> move approval.
>> second.
>> discussion?
with the condition that we mentioned.
>> yes, sir.
>> all in favor?
show Commissioners eckhardt, Gomez, Daugherty, yours truly voting in favor.
>> abstain.
>> Commissioner Davis abstaining.
4.
consider and take appropriate action on request to consent to transfer of partnership, management, membership, property management and certain other related rights and interests of southwest housing development company, inc.
and brian and cheryl potashnik related to old manor apartments (now known as rosemont at hidden creek) to cascade affordable housing llc and its affiliates and the release of southwest housing development company, inc., brian potashnik and cheryl potashnik, and their affiliates as guarantors.
any explanation -- same sclan communication as -- same explanation as number 3.
>> yes, sir, just a different property.
>> move approval.
>> second.
>> discussion?
>> with the same discussions.
>> with the same discussions.
>> all in favor?
Commissioner Davis abstains, the rest of the court votes in favor.
>> thank you.
.
>> > no problem.
>> no further business for this corporation.
>> move adjourn.
>> second.
>> all in favor?
that passes by unanimous vote.
----------------------------------------------------------- hfdc now let's call to order the Travis County health facilities development corporation.
1.
consider and take appropriate action on request to approve payments to deloitte & touche llp for audit of the component unit corporations.
move approval of this one.
>> second.
>> discussion?
all in favor?
that passes by unanimous vote.
2.
consider and take appropriate action on request to release funds to center for child protection pursuant to section 4.1 of contract dated November 1, 2007.
>> and I'm here with vander martin, executive director of the center for child protection.
I do represent to the board that they have fulfilled all of the requirements in the contract for the release of the $100,000 funds in this contract.
>> ms. Martin?
>> yes.
>> any comments.
>> well, just want to tell you that I think this is going to be really wonderful for children.
the american academy of pediatrics has created a new subspecialty that will take effect in 2009 and we are working with children's hospital to figure out the best way to serve additional children in this -- with this medical resource.
and it's going, the discussions are going very well.
we hope that we'll be able to do follow-up care for some of those children who previously would have probably waited or been seen in other clinics.
so it's going to be a great boost to continuity of care for these children, continuity of medical care.
in addition to that our grand opening is now scheduled for September the 17th.
so we hope that all of you will put that on your calendars.
we will be notifying all of you of that.
we really appreciate your support on providing this service to children.
>> you recommend that we support the recommendation from mr. Davis?
>> I do wholeheartedly.
>> I do
>> [laughter]
>> move approval.
>> second.
>> discussion?
all in favor?
that passes by unanimous vote.
we look forward to the grand opening.
ours was just a little bit of the total to complete this project.
>> it's bigger than you think.
I hope it's something that Travis County is going to be very, very proud of.
>> more than 5 million.
>> up to 1.9 million.
>> growing as we speak.
>> thank you.
>> move we adjourn.
>> second.
>> all in favor?
that passes by unanimous vote.
------------------------------------------------------------- cidc our last corporation is capital industrial development corporation only item is to 1.
consider and take jo appropriate action on request to approve payments to deloitte & touche llp for audit of the component unit corporations.
I move approval.
>> second.
>> discussion?
all in favor?
that passes by unanimous vote.
>> move adjourn.
>> second.
>> all in favor?
that carries unanimously, also.
just a reminder, we do have a work session this Thursday at 1:30.
a couple of very important items there that we -- that we expect a full complement of court members.
right?
>> uh-huh.
>> that does it for the day.
>> move adjourn.
>> thank you.
>> we already adjourned the corporation, didn't we?
I mean the voting session of Commissioners court.
>> oh, the voters session, okay.
>> we're done.
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
Last Modified:
Wednesday, April 16, 2008 8:51 PM