Travis County Commissioners Court
January 21, 2009
Travis County Housing Finance Corporation
Now let's call to order the Travis County housing finance corporation. Item no. 1. 1. Consider and take appropriate action on request to authorize a release of lien for a first-time homebuyer that partially repaid a loan executed on April 4, 2007.
>> good afternoon, I'm harvey Davis, manager of the corporation. And this home was purchased in April 2007. The home buyer did a -- what's called a short sale. They were not a -- it's a -- they -- the lender took back the home at less than the amount of the mortgage. However, the -- and the corporation had a third lien position. We provided a -- a $10,000 down payment assistance forgivable loan, zero interest. 8,000 came from the state and 2,000 came from the corporation as match for the program. The lender in order to -- to -- to incentivize the state and the corporation to release the lien paid each party a thousand dollars. So the corporation received half of the down payment money that it -- it contributed and the state got 1,000 of the $8,000. This was not required because we had an inferior lien, of course, to the first lien holder. This -- this transaction occurred in -- in early October and I was not -- I was not in during that period of time, so I did not -- normally I would have contacted the home buyer and inquired about the situation. But I did talk to -- I was not able to find the home buyer, but I did talk to the lender and was told that the cause of this situation was a divorce in the family and a job loss. And that's the reason the lender had to abandon this house or -- or they didn't -- you know, they succeeded in not being foreclosed on. But so -- and I do recommend that the board approve releasing this lien.
>> harvey, I have one question. I think that this is a perfectly decent resolution to what althoughs like a distressed sale -- what looks like a distressed sale by the home buyers. I'm wondering if we should anticipate through a policy discussion the possibility of future circumstances like this because of the downturn.
>> well, I have -- I don't -- I'm not aware of any other circumstances like this. Let me -- I think that might be a good idea. I'll -- I'll come up with something.
>> this was a wonderful result, though, with wells fargo. I'm assuming that wells fargo essentially reduced its own take -- it's -- increased it's loss or used its own take by reducing our exposure by half.
>> right.
>> right.
>> okay.
>> move approval of the recommendation.
>> second.
>> did I cut you off, mr. Davis?
>> I'm finished, sir.
>> discussion? All in favor? That passes by unanimous vote. Director Gomez absent. 2. Consider and take appropriate action on request to approve an invoice from moody's investors service for rating services for the extension of the $15.5 million Travis County housing finance corporation single family mortgage revenue and refunding bonds (mortgage-backed securities program) series 2007a (amt). The amount of the invoice is $1,500. At the time that we did the extension, in July of 2008, we did inform the board that there may be some fairly minor costs of less than $4,000. Expenses to extend -- extend the -- the mortgage loan program, which has worked out and -- positively. And this -- this -- so this invoice, it was anticipated just was slow getting here. But I don't foresee any other costs, so it will be less than the costs that we said might be coming.
>> that's why I move that we pay the invoice for $1,500.
>> second.
>> discussion? All in favor? That passes by unanimous vote. 3. Consider and take appropriate action on request to executive partial -- to execute partial release of liens on two lots owned by Austin habitat for humanity, inc. 4502 and 4604 acers lane.
>> and this is -- we in -- in July of 2006, the corporation provided $100,000 to Austin habitat to assist them in purchasing 8 lots. We have the lien on those lots with the -- with the agreement in the contract that -- that when the lots, when they are ready to sell to a qualified home buyer, then we would release the lien on each of these lots. This would be the fifth and the sixth lot release of the eight. We -- within the past year, we have done an on site audit of this program. And Austin habitat came -- came out squeaky clean. They have done very well. So we recommend that the -- the release be executed.
>> that's why I move approval.
>> second.
>> discussion? All in favor? That passes by unanimous vote. 4. Consider and take appropriate action on a contract amendment with Travis County in order to provide funds to convert a part-time senior financial analyst to full-time status for three months to develop a plan to apply for funding from the Texas department of housing and community affairs for a neighborhood stabilization program.
>> and this is the -- the corporation side of this agreement. The county approved it on consent this morning. I will say that -- that I think in my -- in my memo I indicated that -- that we were -- that we would request from the county auditor that the funds be certified for this year and gotten a stronger -- stronger confirmation from blaine that in fact as the agreement is executed then it will be certifiable revenue for Travis County and would not have to come out of allocated reserves.
>> questions? Move approval.
>> second.
>> discussion? All in favor? That passes by unanimous vote.
>> thank you.
>> move adjournment.
>> second.
>> all in favor? That passes by unanimous vote.
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Last Modified:
Tuesday, January 21, 2009 2:03 PM