Travis County Commissioners Court
February 21, 2012 (Agenda)
Housing Finance Corporation
Now let's call to order the Travis County housing finance corporation.
one item, three parts.
consider and take appropriate action regarding proposal for argosy, a, resolution approving an agreement to issue bonds, b setting a public hearing and c other related matters.
>> good afternoon.
your counsel.
I'll let folks from henderson introduce themselves so I don't mess up any names.
>> tom sears, I work for henderson global investors.
I work in hartford, connecticut.
>> jeannie with the designated management company.
>> I'm christine lynn and I worked in our chicago office, the transaction officer on the argosy deal.
>> we're going to let henderson explain why they are here today.
>> first I'll start about henderson.
we are an investment management company.
we own about 21,000 units across the united states.
about 50% or more are financed with tax emmitt system bonds.
we just did an issue you answer in broward county, florida, of tax exempt bonds on a deal we purchased in December.
so we're here to request that we issue bonds on the argosy transaction.
this is a 288 unit property locate at 1003 justin lane just off lamar.
I don't know if there is anything else about the property.
>> you just want to explain how much you are looking for in bonds?
>> yes.
so we would be looking for $17.5 million no bonds and we would be looking for 20% of the units at 50% of the Travis County area median income and also 90% of the units at 120% of the area median income.
>> and you have a memo that Karen just handed out.
we've also requested that they increase the affordability to include an additional 30% of units at 80% or less a.m.i.
we feel that is a reasonable request and it fulfills our mission of providing affordable housing a little bit more than just 20% at 50.
>>
>> [inaudible].
>> at this point we're doing our due diligence yesterday and today and throughout this week so we're really looking at that.
and at this point I can't say yes to that at this point but we're discussing it internally and I need to look to my superior to get authorization but it's definitely something --
>> how long will it take?
>> by the end of the week we should have a response.
>> by the end of the week?
>> yeah, Friday.
>> the action on today is just preliminary action.
the resolution approves the setting of the public hearing as required by the tax coat for March 13 and approves an agreement to issue bonds which is one of our -- it's our standard agreement.
it doesn't obligate us to issue bonds but sets forth parameters and has indemnification of the corporation and the county in that agreement.
so you are really not -- again, this is a very preliminary action.
the final approval would be scheduled for three weeks from now, March 13th, to meet a March 29th closing date.
>> so you ask the public hearing be set on March 13th?
>> yes, sir, three weeks.
>> what does the law require in terms of satisfying for 50% -- set aside for 50% of the median.
>> 20% for 50% and 90% at 120%.
>> the tax code requirement for this type of project is the 20% of the units at 50% of area median.
then there's a state law requirement where the 90% of the unit, 120% of area median where we get that.
so those are the two laws that kind of overlap but have similar requirements.
>> do we believe that increasing the 20% to 30% is doable?
>> well, we're -- instead of just limiting it to 50% of 120%, we're looking at 80% units which we think is doable and a reasonable request.
even 80% you could --
>>
>> [inaudible].
>> exactly.
but in order to fulfill our mission of affordable housing, we would like to offer some more affordable units at this property.
>> at least guarantee that they are at or slightly below
>> [inaudible].
>> exactly.
>> in regard to the
>> [inaudible] from a legal standpoint, are you asking for us to approve the resolution today?
>> this resolution is not the bond resolution that approves issuance of the bonds.
it approves the setting of the public hearing and approves the agreement to issue bonds which, again, it's called an agreement to issue bonds, but you are not completely obligated to issue the bonds if something comes up later.
it's contingent upon receiving favorable reports from staff and from our limb and firm and
>> [inaudible].
>> even the section that says the corporations hearing authorize --
>> [inaudible].
thank you, sorry about.
that that the corporation hereby authorizes and agrees that it will issue and sell its housing finance revenue bonds from time to time in one or more --
>> that's language that's required for an inducement resolution.
there's language in the actual agreement that makes clear you are not authorized or not obligated to issue the bonds if you don't want to.
you know, if something comes up and you are not in favor of the transaction later.
>> and there's nothing in the resolution that says that, though.
>> I don't think so.
>> so why is it important for us to execute the resolution today?
>> well, the biggest part is we need the authorization to call the public hearing in three weeks.
>> do you have to have the resolution in order to call the public hearing?
>> if you all authorize me to public the notice required by the tax code and schedule it for the 13th, we don't have to have the resolution.
like I said, the -- I think the think that's in favor of the corporation and that agreement to issue bonds is the indemnification but it would not be required for everybody to proceeded towards March 13th.
>> well, we need you to have an opportunity to talk with your superiors about misshields' recommendations.
>> yes, I would like to have until the end of the week to discuss that and make that decision.
>> okay.
we'll have it back on next week and see how we're looking.
I move that we authorize cliff to post a public hearing on this matter on March 13th.
>> we need to publish it this week for tax code requirements but we'll publish it for March 13th date.
>> March 13th hearing.
>> yes.
>> 2012.
and what time would that be?
>> I've been told you want to hold them at 1:30.
>> yeah, it would be best for us, I think.
>> okay.
I'll publish it for that.
>> you have money in your advertising budget?
>> yes, sir.
>> it's good to be advertising in a paper of general publication.
>> we publish in the american-statesman.
>> that's the motion.
is there second?
>> second.
>> that would delay action on the resolution until later.
>> until next week or something like that.
that's fine.
>> but I think we feel fairly strongly about increasing that 20% to a better number.
>> and if y'all have any questions between now and next week, let me know and we'll address them next week.
>> and if there are questions about the doability of the higher percentage, ms. Shields will be able to give you all the information you inside.
with that, welcome to Travis County from connecticut.
anything else today?
did we vote on that?
all in favor?
that passes by unanimous vote.
thank you.
move adjournment.
>> second.
>> all in favor?
that carries by unanimous vote.
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.
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