Travis County Commissioners Court
December 8, 2009,
Travis County Housing Finance Corporation
Now, let's call to order the finance corporation -- Travis County housing finance corporation.
1.
consider and take appropriate action on request to approve minutes of board of director meetings of September 1, 22 and 29, 2009.
>> move approval.
>> second.
>> discussion?
all in favor?
that passes by unanimous vote.
with director Huber absent.
number two is to consider and take appropriate action on request by the housing authority of Travis County for a grant to fund two unbudgeted expenditures not to exceed $135,000.
>> good morning, my name is mike gonzalez, the financial analyst for the corporation.
this item is in response to a request by the housing authority of Travis County.
the grant request is to provide financial support to the housing authority to fund two, as quoted, unusual and unbudgeted expenditures in response to issues uncovered by a recent audit of the housing authority by the h.u.d.
office of the inspector general.
the total grant request is for $135,000 to cover two items.
first, would be for up to 75,000 to hire an independent auditing firm to perform a comprehensive rekvue the 1.3 -- 1.3 medical recorded in h.u.d.
receivables and 183,000 recorded as h.u.d.
payables.
this was mandated by h.u.d.'s audit.
i do believe that the housing authority has already contracted with an auditing firm of leo and carter.
the other item is a flat fee of $60,000 to contract with the housing authority of the city of Austin to conduct a comprehensive operational and management system assessment.
this amount would actually be due on December 31st, 2010.
so there is an opportunity to spread this grant over two fiscal years for the corporation.
as directed, harvey Davis, manager for the corporation, has closely monitored the activities of the housing authority over the last nine months and has stated in his memo to the board that the housing authority has made significant improvements in that time.
both expenditures are -- are essential for the housing authority to move forward and to -- to address some of the issues uncovered by the audit.
the corporation does have the resources to fund this request.
without affecting ongoing operations.
staff does recommend approval and it would be appropriate to approve the grant and direct staff to work out an interlocal agreement with the housing authority.
we do have representatives here from the housing authority.
i believe they have or would like the opportunity to make some comments.
our attorney cliff blunt also I believe has some --
>> I'm going to let craig go first.
>> let me play president first.
mr.
davis did indicate that he would be out of town, I told him that the court would want to continue, probably.
we told mr.
alter we would take action next week.
>> okay.
>> right?
>> yes.
>> okay.
so mr.
alter, next and then two residents.
or mr.
blunt, if you would like to go first.
by the way, we are taking this item up because mr.
blunt had to be here on another item and he's a local lawyer who is on the clock.
so --
>> [laughter] -- we thought that we would go ahead and get him off as soon as we could.
a prominent local lawyer, I may add.
okay.
>> all right, my name is craig alter, executive director for housing authority of Travis County.
as has been stated we have two purposes for the funds that we are requesting.
one is to implement the h.u.d.'s office of inspector general's mandated management decision, which I will describe a little bit.
also undergo a thorough organizational in systems analysis.
we went through two processes with h.u.d., one was with the office of inspector general, which produced a report with many recommendations in it that they wanted us to address.
we put together a response that was submitted back to h.u.d.
h.u.d.
has now given us its recommendations called a management decision, which tells us the direction that we need to take going forward.
one of the major directions is to hire an outside independent auditor that would review the financial records of the housing authority.
to ascertain that -- that funds that have been loaned from one federal program to another or a federal program to a non-federal program have been properly recorded and properly valued.
so our -- our task there is to -- to assemble our documentation, do the research that's necessary, produce the evidence that -- that our transactions were done properly, and then have the outside auditor review that work.
that will be a very time consuming process because it may entail records that go back a number of years.
so ...
we are prepared to begin that immediately, as soon as we get our funding secured for that.
the second item is to undergo a very thorough, internal organizational analysis.
that is look at our systems, look at the way we do things, look at our software, look at our procedures, look at the organization of people and the assignment of -- of responsibility.
we know there's a tremendous amount of opportunity here for improvement.
we want to learn from the best.
the strategic housing compliance corporation is highly regarded by the office of housing and urban development, as an expert in -- in public housing authority affairs.
they have a contract on behalf of h.u.d.
to oversee the programs of -- of many public housing authorities across the state.
they will provide not only just an analysis, but good procedures for us.
they will provide methodology, they will provide direction on how to organize the staff in a different, more efficient way.
as well as talk about how to put in place a financial -- financial monitoring system that has its right and proper types of controls over it.
our objective is to -- to define and reduce the amount of -- of funds that need to be returned to federal programs.
what has happened is in some cases federal programs have paid for non-federal activities.
>> for the record they were not personal activities, but other activities of the housing authority.
>> that is correct.
>> just incorrect line items, which you don't do with federal money, even we have learned in our cdbg program.
>> that is correct, judge, thank you.
>> [indiscernible] thereby generating back to that program.
we are ascertaining the values of all of those due-to's.
we know what we want to accomplish but we need the assistance of outside experts to help us get there.
we have taken a number of corrective steps already to meet the h.u.d.
and oig requirements.
we do share a common goal with h.u.d.
that is to improve our organizational capacity to serve our than we have.
h.u.d.
-- serve our residents that we have.
h.u.d.
has become one of our strongest advocates.
i don't want to use the word fighting but advocating on our behalf with the office of the inspector general.
to help us get to the point where we need to get.
that is a big change.
it wasn't that long ago that we had a very uncooperative spirit, I will put it that way, with h.u.d.'s office.
we set up some barriers that we're trying to overcome.
we have made that very clear to them that we're looking at a new day.
we have new leadership and we bring a new attitude to the table and we want to work with you as a partner, we want to resolve all of the issues that you have raised.
so in general, we are trying to better recognize the organization's capacity, what it can do, and what may be beyond its reach.
the only transgression, if you will, of previous administration was I think trying to go too far too fast without a clear understanding of what the cost was to expand the capacity of the organization and it got us into the trouble of -- of running out of funds.
funds were utilized for an expansion purpose instead of maybe being put into reserves to take care of our future commitments in a better capacity.
so ...
with that, I appreciate your reception to our request.
i appreciate your work that you have done with us.
and on behalf of our organization and our board, we want to let you know that we're here to work with you as a partner and to break down those barriers that may have been created in the past and offer ourselves to your service.
>> thank you.
>> thank you.
>> okay.
are you here on this item, too.
>> I believe they are here on the health facilities item.
>> west minster.
>> yes.
>> okay.
>> eager and early.
>> okay.
now, as I chatted with mr.
alter last Wednesday or thus, told him that I thought instead of a grant the board ought to do an interlocal agreement.
for the record, the housing authority is quasi governmental entity and the Travis County Commissioners court appoints the board.
and the housing authority provides housing services to Travis County residents, so I do think that it is appropriate for us to try to help out.
however, rather than giving a grant in the amount of $135,000, I think it ought to be a forgivable loan.
and we ought to forgive that loan in exchange for services provided to Travis County residents.
and in a memo that I gave to the court yesterday, I list those services and -- and nothing is that creative or new about them.
these are many of the services that the city of Austin housing authority provides.
and what we would do, what I suggest here, is that the housing authority, when it is in a financial position to do so, would provide these services to residents and annually give us a report and -- in which they place a list of services from this list, they place a value on the services, and hopefully we can agree with them on the value and if there is not agreement then we would -- we would put our heads together and compromise or reach some sort of agreement before going forward.
he and I chatted, they may be able to do this in a few years, it make take longer than that.
but I think we ought to tighten up our working relationship with the authority and try to provide more services that the city of Austin housing authority has demonstrated, can help more residents transition to an independent lifestyle.
the other thing about $135,000 grant is when I think about it, helping is, you know, one thing, giving the outright grant is probably more than we should do, the interlocal agreement, I think, enables us to put the authority and Travis County in a position where at least we indicate our intention to provide more of the quality of services to -- to housing authority residents that they should get.
you know, this is not easy, but I think that the city of Austin housing authority maybe 15 or 20 years ago was in a kind of tough position financially and with h.u.d., also, and, you know, they gradually improved that situation and today is viewed as a model nationwide and so my vision is that the -- that the housing authority of Travis County be viewed in the same manner in future years.
but I agree with mr.
alter, we've got to start with this $135,000 because these two broad categories -- one is required, the other one is strongly recommended and based on the situation as we know it today, we ought to help put both in place.
>> uh-huh.
>> judge, I -- I did get a chance to review your -- your input as far as this process is concerned and as far as what do we get in exchange for the services that we feel should be rendered in the format of a loan.
and the interlocal agreement.
i don't really have any problem with that, but what I do have a problem with, though, is the -- the past practices of what I have not yet fully had a chance to -- to have enough information on several things that were brought to this court in the format that you did mention, craig, of the -- of the strategic housing finance corporation that -- that -- that has been created through this particular organization and with the approval of this court.
some of the concerns -- that program in itself was supposed to -- to do several things.
one of the lease purchase was one of the most highly visible things that we wanted to make sure that could
>> [indiscernible] housing finance corporation adhere.
being that -- being that a person could actually lease a house, in the interest of purchasing that house, but of course there was some situations in there, for an example, interest rates that ballooned on persons and my question then had came to all of those agreements that -- reached had been reached or with the persons that were leasing the homes to purchase them, how many of those have actually been fulfilled?
because that was a real big selling point for the
>> [indiscernible] housing finance corporation and also the fact that there was some interest laid back then as far as some of the folks that they were dealing with scholarship programs for our youth, which is part of this -- part of this educational thing and even in the judge's suggestions here as far as forgivable things.
education is mentioned.
when we look at this overall due to the strategic housing finance corporation which is an extension of this, of your organization, one of the things that we had talked about is after-school care, making sure that job training is available to actually propel the persons that were involved in -- in housing needs, all of these other social needs.
adult education, that's another example of what we're talking about here.
job training, education and the list goes on, which is pretty, pretty wide -- wide-spread and I think hit the -- hit the bull's eye.
however, measuring these things and of course is something else that have to be looked at and then again the performance of it is what I'm really concerned about.
because right now, today, I still have not had any -- maybe something may be available to let me know that even under the strategic housing finance corporation which we have leased at as far as lease to purchase a home, how many have actually been purchased in -- within that program by person that's qualified to do that.
so -- so those are some concerns that -- that I still have as far as addressing the needs of the persons, but then making sure that those needs are adequately implemented.
because here we sent a series of good things that -- that can -- we've seen a series of good thing that can happen under the housing authority.
my whole approach to the housing authority, just like the Austin housing authority, you take the transitional housing as far as the booker t.
washington terrace, for example, that's under the housing authority, that's an example, along with others.
those are transitional housings for the program.
they are set aside programs to make sure they are transitional housing where a person in those housing can really move up the ladder within the social setting of things.
even though this structure is in place, really timid, I think I need to lay it out as I said, of what has happened in the past, as far as some of the programs that have been there and really -- haven't really met the meat of the matter.
i'm very, very, looking at this very cautiously, because it is a situation where even though forgivable, the point is are you going to do it?
because of other things that have not been done properly to assist the poor, the elderly, the senior citizens in this community on some things that I think we are basically charged to do.
of course, my concern is still that as I stated.
so, craig, I hope you understand where I'm coming from.
>> I do.
i would welcome the opportunity to talk with you and address those issues specifically and how we would like to address that going forward.
>> well, it really does need attention.
i still haven't gotten an accurate report of how many persons have actually purchased a home through the lease purchase program with the Travis County strategic housing extension of the authority.
that's very important.
>> that's a separate legal entity, though.
that's a separate corporation.
>> I know, I know it is.
>> and not posted today.
>> I know.
>> you have been interim director how long?
>> since mid August.
>> okay.
>>
>> [indiscernible]
>> certainly.
>> with regard to the -- to the performance and management review, which I -- I'm very gratified to see.
i agree with Commissioner Davis that the prior performance of the housing authority was -- was not as high of a standard as we would have liked to have seen, but it's a new day, we have got new management.
a very robust board.
my thanks go to tommy nobles and in his capacity as chair on the board as well as the previous chairs, I understand that the chair is rolling over in the next few months, is that what I understand?
no?
good, good.
some tremendous work has been done.
i do believe that it's a new day with the housing authority.
in regard to the -- I am a big fan of -- of performance reviews and in regard to the performance review, will it go strictly to the housing authority or will it also look to the relationship between the housing authority and -- and the strategic housing finance corporation?
>> we will look at both entities and it will look at the interaction and allocation of resources, priority for -- for program enhancement program initiatives.
it will be all encompassing.
>> that's very good to hear.
i'm very happy to hear that.
>> then with regard to -- to previously there had been very little relationship between the housing authority and our housing corporation.
and in some respects, I confess, it was because our housing corporation and our body was a little concerned about -- about the -- you know, the day to day operations over at strategic and the housing authority.
but again I think things have vastly improved and I -- I was wondering what the future relationship would be between the housing corporation and the housing authority.
>> we have opened those lines of communication.
we have spoken with mr.
davis.
>> harvey Davis.
>> mr.
harvey Davis, I'm sorry, correct.
>> happens all the time in e-mails, you type in Davis --
>> rodney rose, leroy nellis, we know that we can do more together.
we know that we need to try to couple the services that are available with the county, for example, for the residents that we are serving within the county.
that's a connection that just hasn't been made and strengthened.
we have talked about holding a summit with other housing organizations, probably in April.
where we all talk about how are we going to communicate and cooperate to deliver in a better and more efficient way together.
so we're only beginning.
but it is absolutely in our best interest to -- to utilize your expertise that's here at the county as well as your resources.
we know what we can provide and bring to the table.
we know what the county has.
so we need to measure them together.
>> mesh them together.
>> I'm thrilled by that.
i would also ask, there are two other items on our agenda today that may inform that future summit.
i would be happy to provide or the clerk can provide backup for items number 9 and number 19.
number 9 from the health and human services with regard to the economic downturn and the effects on the most needy in our community.
number 19 was with regard to the -- the hurdles for the reentering jail population and one of the major hurdles is housing.
>> we have three options.
we can reject the request, we can approve the grant, or we can adopt the Biscoe strategy which is to authorize mr.
blunt to put together an interlocal agreement for us to act on next Tuesday.
>> do we need to make a motion today so we can provide direction?
>> I think we ought to?
mr.
bluntly be on the clock if --
>> then I move that we move forward on the Biscoe plan.
>> second.
>> discussion?
>> I just want to say one thing.
one thing that I have not checked on and I want to be sure and make sure -- to make sure that the housing finance corporation has the ability to fund the housing authority in this way.
i knew about this item coming up, but I didn't know --
>> the interlocal --
>> so I just need to double check that, that was my only caveat.
we will have something together by the end of the week so to have it on the agenda next Tuesday.
>> we were looking at doing it over two fiscal years which would ease the financial concerns of the housing finance corporation.
>> I believe that's possible if the --
>> what was the motion?
>> the motion is to do an interlocal and prepare it between now and next Tuesday for the court to consider and act on next Tuesday.
>> to do an interlocal today?
>> no, to authorize mr.
blunt to work on it, but we would act on it next Tuesday, hopefully it would be ready by then.
if something happens and it's not ready, we simply would have to slide it a week.
we received the request more than a month ago, I think.
so there's some value in going ahead and acting on it.
>> I have no objections I guess to an interlocal.
but I do have some very legitimate concerns about how are we going to deal with performance because of past practices.
really need to look at that.
i don't feel it's comfortable.
maybe next week I will feel more comfortable.
i'm really concerned that those persons that need these services actually receive them.
i mentioned several, several, several categories and just the performance of some things that have happened in the past have made me feel uncomfortable.
maybe between here and then, fred, you can come by and bring me to a comfort level.
i don't know.
i will have to come up with some things that I think convince me that this is what I really should do.
>> speaking of comfort, legally, in order for us to discuss some of the much broader issues that we have mentioned today, we really need a much broader posting.
>> yep, we really do.
>> so if we want to discuss that -- the other corporation's business next week, we simply need to post that.
i do think at some point in the future we need to spend some time working with the authority to -- to provide more specifics, more details about -- about direction, Travis County, city of Austin, human services, that might be available for these residents.
a myriad of other things that we can discuss, but we need a broader posting.
>> I agree with you.
>> any more discussion of that specific motion?
>> no.
>> mr.
blunt?
try to get it done in a week for us.
>> I should be able to do that.
>> discussion?
all in favor?
that passes by unanimous vote.
>> okay.
>> thank you very much.
did you get my one pager?
>> are you talking to me?
or craig?
>> I know craig -- if he didn't get it, it will be in his office.
>> I received it.
>> craig is going to e-mail it to me after this meeting so I'll have it.
drafting the agreement.
>> if I can be of assistance let me know.
otherwise I will stay out of your way.
>> thank you.
>> move adjournment.
>> second.
>> all in favor?
that passes by unanimous vote.
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Last Modified:
Tuesday, December 8, 2009 2:30 PM
