Travis County Commissioners Court
September 22, 2009,
Travis County Housing Finance Corporation
>> good afternoon.
let's call to order the Travis County housing finance corporation.
item number 1 is consider and take appropriate action on request from wells fargo bank to resign as trustee on corporation's multi-family housing bonds, circle s apartments, series 2002 a and b, and appoint regions bank as successor trustee on such bond issue.
>> harvey Davis, manager of the corporation.
i'm here with cliff, the attorney for the corporation.
wells forgo is resigning and wachovia has an interest in circle s apartments due to the tax credit.
and so wells fargo needs the resign as trustee.
regions bank is, in our opinion, an appropriate replacement trustee and so we recommend that you approve this.
>> and also the servicer for the bondholder has approved our reasons also.
>> I'll second the motion.
>> discussion?
all in favor?
that passes by unanimous vote.
number 2 is consider and take appropriate action on request to approve minutes of board of directors meetings of June 23rd, June 30th, July 7th, July 14th, July 21st, August 11th, August 18th and August 25th, 2009.
>> move approval.
>> may we take July 21st separately because I wasn't there that day.
>> that's what I was looking at.
i may not have been here the 23rd.
>> all right.
so pull from this list July 21st?
>> uh-huh.
>> and --
>> June 23rd.
>> I don't know if there's any law that says you shouldn't approve the minutes.
>> I was thinking I wasn't here on the 23rd.
>> what's your request?
>> I'll vote for them.
>> we'll pull July 21st and voting on the others.
discussions?
corrections?
all in favor say aye.
that passes by unanimous vote.
now let's vote on July 21, 2009.
move approval.
>> second.
>> discussion?
all in favor?
show Commissioners Gomez, Huber and yours truly voting in favor and Commissioner Eckhardt abstaining.
>> and Commissioner, we'll recheck that for you.
>> number 3, consider and take appropriate action on request to approve budget for fiscal year 2010.
>> in your backup is the budget for the housing finance corporation.
it is considerably more complicated this year than in prior years because we do have three -- three grants that will be ongoing.
all three grants are grants that we have never done in the past so I've prepared separate columns for each of these grants.
we do go into the year with a -- for the housing corporation, a very large balance, and are recommending that a lot of that -- those funds be reserved so that we have funds to properly administer the three grants.
and as we've done in prior years, we've transferred the remaining money after expenses and reserves, we put it into an allocated reserve so that that money is available to you to -- if something new comes up, then you have those funds available to -- to use.
and in the budget the allocated reserve is $204,776.
so with that, I would be happy to entertain any questions.
>> move approval.
>> second.
>> so when we look at the total expenditure budgets, we're simply looking at the different grant accounts?
>> yes.
>> then you have unrestricted funds.
>> yes, sir.
>> unrestricted funds simply means that they belong to the corporation?
>> well, they -- they are transferred to the allocated reserve would be unrestricted funds, right.
and that is --
>>
>> [inaudible] in the past?
>> yes, sir.
that's right.
that's what we've done in the past.
>> okay.
discussion?
all in favor?
that passes by unanimous vote.
and number 4 is to consider and take appropriate action on results of monitoring review by the Texas department of housing and community affairs.
>> they did do a desk review that began in July.
they reviewed 16 files and had questions on three of the files that we are attempting to resolve.
they have -- the way the state works, if they -- I mean they have -- on each of these closings, they have reimbursed us $7,500, so that's the grant fund on each one in which we help the homeowner buyer purchase a home.
so if we have helped somebody that didn't qualify for one reason or another, then we are required to pay back the state.
so their -- they are questioning three of the files.
one of them -- one of the files they are questioning is whether the home buyer was a first-time home buyer or not, and the other two is whether we calculated their income or not.
and the way they had calculated the income and they were over the income limit.
i -- I have not -- we have responded a couple of times to give them additional information on these three, and we have not had a response as to whether they accepted our additional information or not.
i'm somewhat confident on two of the -- of the files that they will reverse their decision.
i'm, frankly, not that confident on one of the files.
but they do -- they do have a deadline.
in my backup, I said the deadline was September 21st, but they did extend it to September 28th.
so what I'm asking the board to do is to allow payment up to the $22,500 to resolve this audit, and I will update you as soon as I have more information on -- on the outcome of the audit.
>> okay.
do -- are they expecting payment on the day the outcome is determined?
i think they've been extended to the 28th.
why don't we get a report on the 29th, next Tuesday?
just tell them the check is in the mail.
>> okay.
that will be fine.
>> I'm sure they've heard that before.
especially if they've -- I wouldn't think if the deadline is the 28th they would expect us just to hand it over.
if so, you can tell them you don't have the authority.
>> okay.
>> especially if we don't aprofessor it today.
-- approve it today.
>> they are flexible.
they -- you know --
>> don't let them intimidate you, mr.
davis, stand in there and fight with them.
>> okay.
it is important for us to have -- to resolve these issues and to resolve them in a way that's -- that's fair to both sides.
and, you know, their position is, well, if you don't -- if you don't give us the information or pay us the money by our deadline, then we're going to put you on their negative list, which would mean they -- they will freeze all other contracts you have, and we do have the tenant-based rental assistance contract and the neighborhood stabilization contract, which are very important for us to move ahead on.
>> if they tell you on Monday the money is owed, tell them you are going to the board to get it.
>> okay.
>> in the meantime, we'll have that back on the court's agenda next week.
>> that would be great.
>> is that okay, court?
or board?
>> move we adjourn.
>> that does it for housing and finance.
>> yes, sir.
>> motion to adjourn, second.
all in favor?
that passes by unanimous vote.
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Last Modified:
Tuesday, September 22, 2009 1:30 PM
