Board Packet - Texas State Affordable Housing Corporation

Transcription

March Board Meeting
To be held at the offices of
Texas State Affordable Housing Corporation
2200 East Martin Luther King Jr. Blvd.
Austin, TX 78702
Thursday, March 24, 2016
10:30 a.m.
BOARD MEETING
TEXAS STATE AFFORDABLE HOUSING CORPORATION
To be held at the offices of
2200 East Martin Luther King Jr. Blvd
Austin, Texas 78702
March 24, 2016 at 10:30am
CALL TO ORDER, ROLL CALL
CERTIFICATION OF QUORUM
William Dietz
Vice Chair
The Board of Directors of Texas State Affordable Housing Corporation will meet to consider and possibly act on the following:
PUBLIC COMMENT
PRESIDENT’S REPORT
David Long
Tab A: Homeownership Finance Report
Tab B: Development Finance Report
Tab C: Annual Asset Oversight and Compliance Report
Tab D: Report on Veteran Homelessness in Texas
Tab E: Monthly Financial Reports
ACTION ITEMS IN OPEN MEETING:
Tab 1
Presentation, Discussion and Possible Approval of Minutes of the Board Meeting held on February 11, 2016.
Tab 2
Presentation, Discussion and Possible Approval of a Resolution Relating to the Sale of Mortgage-Backed Certificates
Relating to the Texas State Affordable Housing Corporation Single Family Mortgage Revenue Bonds (Fire Fighter
and Law Enforcement or Security Officer Home Loan Program), Series 2006B, and the Redemption in Whole of
Such Bonds, and all matters related thereto.
Tab 3
Presentation, Discussion and Possible Approval of a Resolution Relating to the Sale of Mortgage-Backed Certificates
Relating to the Texas State Affordable Housing Corporation Single Family Mortgage Revenue Bonds, Series 2006C,
and the Redemption in Whole of Such Bonds, and all matters related thereto.
Tab 4
Presentation and Discussion of the Status of the Redevelopment of the Corporation’s ACT Land Bank Property in
Plano, Texas.
Tab 5
Presentation, Discussion and Possible Approval of the 2016 Texas Foundations Fund Guidelines.
Tab 6
Presentation, Discussion and Possible Approval of a Resolution Approving Policies and Procedures of the Texas
State Affordable Housing Corporation Relating to its Compliance with Federal Tax Rules Applicable to Tax-Exempt
Bonds Issued by the Corporation.
Tab 7
Presentation, Discussion and Possible Approval of the Commitment of the Corporation’s Available Funds in a Total
Amount Not to Exceed $266,000 for the Purpose of Completing the Renovation of the Rollins Martin Apartments.
Tab 8
Presentation, Discussion and Possible Approval of a Resolution Approving the Extension of the Maturity Date of an
Equity Equivalent Investment from Wells Fargo Community Development Corporation, and Ratifying and
Approving All Actions of the President and Executive Vice President Relating to the Election of the Extension
Relating to such Equity Equivalent Investment, and Authorizing and Approving Further Actions Related Thereto.
CLOSED MEETING:
Consultation with legal counsel on legal matters – Texas Government Code § 551.071
Deliberation regarding purchase, exchange, lease, or value of real property – Texas Government Code § 551.072
Deliberation regarding prospective gift or donation to the state or Texas State Affordable Housing Corporation – Texas Government
Code § 551.073
Personnel Matters – Texas Government Code § 551.074
Implementation of security personnel or devices – Texas Government Code § 551.076
Other matters authorized under the Texas Government Code
OPEN MEETING:
Action in Open Meeting on Items Discussed in Closed Meeting
ADJOURN:
Individuals who require auxiliary aids or services for this meeting should contact Laura Ross, ADA Responsible Employee, at 512-4773560 or Relay Texas at 1-800-735-2989 at least two days before the meeting so that the appropriate arrangements can be made.
Section 46.035 of the Texas Penal Code prohibits handgun licensees from carrying their handguns at government meetings such as this
one. This prohibition applies to both concealed carry and open carry by handgun licensees. Handgun licensees are required by law to
refrain from carrying their handguns at this meeting.
Texas State Affordable Housing Corporation reserves the right to recess this meeting (without adjourning) and convene at a later stated
time, if and to the extent allowed by law. If Texas State Affordable Housing Corporation adjourns this meeting and reconvenes at a later
time, the later meeting will be held in the same location as this meeting. Texas State Affordable Housing Corporation also reserves the
right to proceed into a closed meeting during the meeting in accordance with the Open Meetings Act, Chapter 551 of the Texas
Government Code. If permitted by the Open Meetings Act, Chapter 551 of the Texas Government Code, any item on this Agenda to be
discussed in open meeting may also be discussed by the Board (and any other authorized persons) in closed meeting.
President’s Report
Tab A
Homeownership Programs with Down Payment Assistance
January 1, 2016 to February 29, 2016
Closed
Month
January-16
February-16
Totals
$
$
Lender
Everett Financial, dba Supreme Lending
Cornerstone Home Lending, Inc.
NTFN, Inc.
Fairway Independent Mortgage Corporation
PrimeLending
Gateway Mortgage Group, LLC
Guild Mortgage Corporation
Mortgage Financial Services, LLC
DHI Mortgage Company, Ltd.
Wells Fargo Bank, N.A.
Rocky Mountain Mortgage Company
Aspire Financial, Inc.
Houstonian Mortgage Group, Inc.
First Community Mortgage
Highlands Residential Mortgage
Movement Mortgage, LLC
WR Starkey Mortgage, LLP
SFMC, LP (Service First Mortgage)
Georgetown Mortgage, LLC
New American Funding (Broker Solutions)
Hometrust Mortgage Company
Primary Residential Mortgage, Inc.
Affiliated Bank
American Southwest Mortgage Corp.
Pulte Mortgage LLC
On Q Financial, Inc.
Academy Mortgage Corporation
Colonial Savings, F.A.
Wallick and Volk, Inc.
1st Preference Mortgage Corporation
Nations Reliable Lending, LLC
City Bank Mortgage
Residential Bancorp, Inc.
Envoy Mortgage
Network Funding, LP
loanDepot dba imortgage
Totals
10,041,148
9,847,479
$19,888,627
Closed
$2,391,242
$1,910,985
$1,702,529
$1,553,316
$1,410,998
$1,230,494
$953,467
$860,131
$679,875
$661,997
$647,651
$573,500
$516,313
$442,250
$436,840
$369,370
$353,506
$351,024
$293,092
$268,055
$256,334
$207,275
$198,470
$171,830
$151,701
$150,228
$150,130
$138,710
$138,225
$127,506
$126,172
$113,898
$106,043
$88,369
$85,424
$71,677
$19,888,627
# of Loans
% Total
74
75
149
50.5%
49.5%
100%
# of Loans
% Total
17
12
13
12
13
10
7
6
4
5
5
4
4
4
3
3
3
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
149
12.0%
9.6%
8.6%
7.8%
7.1%
6.2%
4.8%
4.3%
3.4%
3.3%
3.3%
2.9%
2.6%
2.2%
2.2%
1.9%
1.8%
1.8%
1.5%
1.3%
1.3%
1.0%
1.0%
0.9%
0.8%
0.8%
0.8%
0.7%
0.7%
0.6%
0.6%
0.6%
0.5%
0.4%
0.4%
0.4%
100%
At a Glance
Average Annual Income
Average Purchase Price
Average Loan Amount
Average Household Size
Average Interest Rate
Program
Home Sweet Texas (80% AMFI)
Homes for Texas Heroes
Teacher
Teacher's Aide
$45,531
$136,330
$133,481
2
4.940%
%
65.77%
34.23%
24.83%
4.03%
1.34%
0.67%
0.67%
0.00%
1.34%
0.67%
0.00%
0.00%
0.67%
0.00%
0.00%
0.00%
New/Existing Home
Existing
New
87.25%
12.75%
Type of Loan
FHA - Purchase
Conventional - Purchase
USDA-RHS Purchase
VA - Purchase
81.88%
14.09%
2.68%
1.34%
Ethnicity
White
Hispanic
Black
Not Defined
Asian/Pacific Islander
American Indian/Alaskan Native
Other
Top 20 Originating Counties
Harris
Dallas
Tarrant
Bexar
El Paso
Travis
Denton
Fort Bend
Williamson
Bell
Hays
Montgomery
Collin
Brazos
HIdalgo
Parker
Kaufman
Taylor
Ector
Bastrop
40.22%
37.04%
21.77%
0.00%
0.96%
0.00%
0.00%
# of Loans
20
20
14
15
13
9
8
5
4
6
2
2
2
2
2
2
2
2
1
1
2015A Mortgage Credit Certificate Program
June 1, 2015 to February 29, 2016
Closed
Month
June-15
July-15
August-15
September-15
October-15
November-15
December-15
January-16
February-16
$
$
$
$
$
$
$
$
$
Totals
577,861
2,985,838
5,081,319
4,593,421
4,789,345
2,299,878
3,200,732
2,286,153
2,765,417
$28,579,964
Lender
Cornerstone Home Lending, Inc.
PrimeLending
Fairway Independent Mortgage Corporation
Everett Financial, dba Supreme Lending
Guild Mortgage Corporation
NTFN, Inc.
Gateway Mortgage Group, LLC
Hometrust Mortgage Company
Highlands Residential Mortgage
SFMC, LP (Service First Mortgage)
WR Starkey Mortgage, LLP
Primary Residential Mortgage, Inc.
Origin Bank
Georgetown Mortgage, LLC
Bay Equity LLC
Nations Reliable Lending, LLC
Wells Fargo Bank, N.A.
Aspire Financial, Inc.
First California Mortgage Co (FirstCal)
Movement Mortgage, LLC
Sente Mortgage Inc.
Affiliated Bank
First Choice Loan Services, Inc.
Wallick and Volk, Inc.
Envoy Mortgage
loanDepot dba imortgage
Cendera Funding, Inc.
New American Funding (Broker Solutions)
Evolve Bank & Trust
DHI Mortgage Company, Ltd.
SWBC Mortgage Corporation
Pulte Mortgage LLC
Northstar Bank Mortgage
Home Community Mortgage
Geneva Financial, LLC
Amerifirst Financial, Inc.
Houstonian Mortgage Group, Inc.
Republic State Mortgage Co.
Sun West Mortgage Company, Inc.
Castle and Cooke Mortgage
AmCap Mortgage Limited
Interlinc Mortgage Services, LLC
Texas Bank Mortgage Company
BancorpSouth Bank
Mortgage Financial Services, LLC
Total Committed
Closed
$3,325,712
$3,318,010
$2,319,773
$2,188,778
$1,375,261
$1,242,546
$1,234,391
$1,087,012
$962,086
$936,411
$830,094
$826,688
$754,981
$697,373
$560,583
$547,039
$504,050
$474,465
$456,826
$451,358
$321,564
$316,296
$294,000
$285,729
$269,246
$246,453
$242,525
$214,934
$178,825
$165,781
$164,723
$155,520
$147,910
$147,277
$144,123
$143,010
$140,017
$135,773
$132,554
$117,472
$116,820
$110,953
$109,971
$106,500
$78,551
$28,579,964
Total Allocation
Remaining to Commit
$125,000,000
$96,420,036
# of Loans
% Total
4
22
38
37
37
16
25
17
19
2%
10%
18%
16%
17%
8%
11%
8%
10%
215
100%
# of Loans
% Total
23
28
20
16
9
8
9
7
6
8
8
7
5
5
5
4
5
4
3
3
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
10.7%
13.0%
9.3%
7.4%
4.2%
3.7%
4.2%
3.3%
2.8%
3.7%
3.7%
3.3%
2.3%
2.3%
2.3%
1.9%
2.3%
1.9%
1.4%
1.4%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
0.5%
215
100%
At a Glance
Total Amount Originated
Average Annual Income
Average Purchase Price
Average Loan Amount
Average Household Size
Average Interest Rate
Program
Home Sweet Texas (80% AMFI)
Homes for Texas Heroes
Teacher
Teacher's Aide
$28,579,964
$40,051
$138,143
$132,930
2
4.756%
%
72.56%
27.44%
19.53%
1.86%
1.40%
1.86%
1.86%
0.00%
0.47%
0.47%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
New/Existing Home
Existing
New
84.65%
15.35%
Type of Loan
FHA - Purchase
Conventional - Purchase
USDA-RHS Purchase
VA - Purchase
79.53%
13.95%
4.65%
1.86%
Ethnicity
Hispanic
White
Black
Asian/Pacfic Islander
Not Defined
American Indian/Alaskan Native
Other
Top 20 Originating Counties
Harris
Dallas
Bexar
Tarrant
El Paso
Travis
Bell
Williamson
Hays
Collin
Denton
Fort Bend
HIdalgo
Montgomery
Johnson
Ellis
Webb
Grayson
Ector
Cameron
36.64%
36.54%
20.35%
3.99%
1.88%
0.00%
0.58%
# of Loans
41
28
28
14
13
12
11
7
7
5
5
5
5
5
3
3
3
3
2
2
Tab B
Development Finance Programs Report
March 2016
Affordable Communities of Texas Program
Staff has spent the past month reviewing the proposals received in response to the RFP for
development of our ACT property at 14th and Avenue G in Plano, Texas. After a series of reviews
and meetings with the executive team, we have decided to further explore the proposal
submitted by DMA Companies, an experienced developer of mixed income properties.
There are five homes still for sale in the ACT Veterans program, and the Development Finance
and Marketing team have been discussing ways to improve marketing those homes, both on
the TSAHC website and externally. We have already modified our existing website for our
remaining veteran properties through the addition of photos and property info, similar to other
real estate websites.
Acquisitions of ACT properties remain slow, allowing the team to work on redevelopment
proposals for our existing ACT portfolio and completion of outstanding NSP and ACT contracts.
Currently staff is working on ten NSP contracts with local partners throughout the state.
Program
ACT Land Bank
ACT Land Trust
Texas NSP
Veteran's Initiative
Totals
Portfolio as of
February 1, 2016
92
60
241
5
398
Acquired
Sold
3
0
0
0
3
2
0
1
0
3
Current
Portfolio
93
60
240
5
398
Current Portfolio Value
$1,564,568.67
$650,000.00
$4,399,555.67
$362,510.00
$6,976,634.34
Lending Programs
Staff will be attending the Texas Association of CDCs conference April 10 12 to market our
Texas Housing Impact Fund to nonprofit developers from across the state. We are also working
on two potential new lines of credit and a request from Legacy CDC to increase their current
line of credit.
Multifamily Bond Programs
Staff continues to speak with several developers on potential bond financed projects and
anticipates one application to be submitted for consideration at the April or May board
meeting.
Tab C
TSAHC Portfolio
2015 Compliance Review Summary
DALCOR
Property
Name
# of
Units
Location
Audit
Date
Pine Club
232
5015 Pine Street
Beaumont, TX 77703
06/24/2015
Annual Summary
Property was meeting the required set-asides at the time of the site visit.
Finding: No Findings
Observation: No Observations
Ridgewood
232
2830 lake Road,
Huntsville, TX 77340
03/20/2015
3625 Wellborn
Bryan, TX 77801
03/19/2015
5300 Professional Dr.,
Wichita Falls, TX 76302
05/12/2015
Findings: No Findings
Observations: No Observations
Saddlewood
232
Tealwood
Willow Green
Woodglen I &
II
180
336
232
8301 Willow Place
Drive North, Houston,
TX 77070
06/23/2015
6800 South Cockrell
Hill Road, Dallas, TX
75236
09/23/2015
Observations:
·
It was observed that office staff is completing documentation for prospective tenants. This practice is discouraged.
Applicants should complete all paperwork to the best of their ability. If the applicant is unable to complete the
application themselves, allow a caseworker, friend or relative to assist on their behalf. As a last resort, development
staff could assist in completing applications, but the file should be noted in such cases.
·
During the file review, discrepancies between the Tenant Income Certification (TIC) or AEC form, and the Unit
Status Report (USR) were noted. Prior to the issuance of this report, the TSHAC staff confirmed that all
discrepancies were updated. TSAHC reminded management that the USR is a tool used to ensure program
compliance. The USR should be updated monthly and should be a snap shot of the current composition of the
property.
Observations:
·
The most common issues found during the file review included differences between the Tenant Income
Certifications (TIC) or Annual Eligibility Certifications (AEC) and the Unit Status Report (USR). The differences
included rent amounts, effective dates, and/or household size. In addition to the differences mentioned above,
management was also informed of a few income calculation errors. Corrections were turned in on the following
units: 304, 314, 601, 602, 614, 616, 716, 804, 816, 907, 1002, 111113, 121201, 121204, 121210, 121216, 131307,
161602, 161604, 161608, 161609, 161613, 181805, 181808, 191901, and 202002. It is suggested that a more
diligent effort should be made to keep the TSAHC USR up to date.
·
Mary Lee Foundation
Property
Name
The Willows
# of
Units
64
Location
1322 Lamar Square
Drive, Austin, TX
78704
Audit
Date
Annual Summary
09/17/2015
1
Guadalupe Economic Services Corporation (GESC)
Rita Blanca
50
701 Maynard Street
Dalhart, TX 79109
07/08/2015
Observations:
·
On June 9, 2015 site visit notification letters were sent to the owner, owner representative, and management agent
(via email) of Rita Blanca which notifies them of the onsite visit, lists the reports needed prior to the day of the
onsite visit, and notifies them that a limited physical inspection of at least three units will be completed. However,
on the day of the onsite visit, it was confirmed that the Property Manager was not aware of the site visit and that
resident notifications of unit inspection were not issued to residents in a timely manner. This resulted in the
reviewer not being able to physically inspect units. It is the owner’s responsibility to ensure that a property is
available and ready for annual monitoring and review by TSAHC. TSAHC strongly suggests owners notify the site
manager of all correspondence relating to TSAHC’s annual onsite monitoring visit in the future.
Common Wealth
Property
Name
# of
Units
Location
White Rock
Apartments
336
3110 Thousand Oaks
San Antonio TX 78247
Audit
Date
Annual Summary
04/21/2015
Findings:
·
The Rental Criteria provided prior to the site visit reflected the following statement regarding section 8 recipients: “In an
effort to increase participation in the program, the property has set aside a limited number of vouchers that are allowed to
rent below market rents. The below market vouchers shall not exceed four units and pay no more than $200 under the
market rent per voucher. During the site review management stated that although the above mentioned verbiage states
“market” that they mean the maximum allowable rent for the low income or very low income designations. It is
recommended that the verbiage be edited so that market rent is not referenced if this is not what is intended. In addition,
it is not standard practice for affordable housing properties to put a cap on the amount of Housing Choice Voucher
applicants that can be accepted. In this case the criteria states that management is capping its Housing Choice Voucher
applicants at 4 units. If this is being implemented, management needs to send TSAHC an explanation as to why Housing
Choice Voucher applicants beyond four units are being denied and supporting documentation to support this process.
The explanation and supporting documentation is due to TSHAC no later than 6/19/2015. Cleared 06/16/2015.
Observations:
·
The Rental Criteria provided prior to the site visit reflected the following statement regarding co-signers or guarantors: “If
prospective Leaseholder(s) is/are also fulltime students, only the guarantor will be required.” While it is understood that
this section is for Co-signer or guarantors, there is nothing else stated in the criteria of rental regarding student status,
specific to full-time students. TSAHC suggest management revised the current language to states there are additional
stipulations for applicants/households that would be compromised of full-time students for the affordable set-aside
portion of units.
Worthington Oaks/Caesar Chavez Foundations
Property
Name
# of
Units
Location
Aquila Oaks
346
3270 Nacogdoches,
San Antonio, TX 78217
Audit
Date
Annual Summary
04/22/2015
Odyssey Properties
Property
Name
# of
Units
Location
Marshall
Meadows
250
1803 Marshall Cross
San Antonio, TX 78214
Audit
Date
Annual Summary
04/22/2015
2
Rainbow Project
Property
Name
# of
Units
Location
Chaparral
Village
Apartments
80
1411 S. Grant Avenue
Odessa, TX
Cove Village
Apartments
50
Audit
Date
Annual Summary
02/11/2015
1102 Golf Course Road
Copperas Cove, TX
02/18/2015
Findings:
·
El Nido
Apartments
104
204 Alicia Drive
El Paso, TX
10/26/2015
The reviewer was unable to determine household eligibility on the day of the onsite visit. The tenant file contained
an application that listed a head of household, live-in aide, and the live-in aide’s grandson. The Income Certification
and Annual Eligibility Certification (both dated 8/29/2014) list all three household members but the name of the
grandson was crossed out indicating that the grandson does not live in the unit. On the day of the onsite visit during
the physical review of the unit, the head of household was in the home and a child was asleep on the sofa however
the live-in aide was not. In addition, one of the three bedrooms was furnished with a child’s bed and toys. A live-in
aid’s family member may not reside in the unit. Obtain documentation (oral verification will not suffice) to support
that the live-in aide’s grandchild does not reside in the home. Submit supporting documentation to TSAHC for
review. Submit supporting documentation to TSAHC for review no later than 04/12/2015. Cleared 04/03/2015.
Observations:
High Plains
Apartments
50
1607 Iola Avenue
Lubbock, TX
02/12/2015
Property was/was not meeting the required set-asides at the time of the site visit.
Observations:
·
Garden
Apartments
62
1340 65th Drive
Lubbock, TX
The following items were found to be incorrect or inconsistent during the file review: Unit 4: The income on the USR
did not match the income on the initial Tenant Income Certification (TIC). The file did not have a recertification in it.
Unit 9: The lease addendum was not signed by the manager. Unit 15: The lease addendum was not signed by the
manager. Unit 23: The effective dates on the USR did not match the effective date of the Annual Eligibility
certification (AEC). Unit 30: The effective dates on the USR did not match the effective date of the AEC. Unit 36:
The effective dates on the USR did not match the effective date of the AEC. Unit 39: The income on the USR did
not match the income on the initial TIC.
02/12/2015
Observations:
·
The following items were found to be discrepancies or inconsistencies during the file review: Unit 15B: The income
on the Unit Status Report (USR) did not match the income on the initial Tenant Income Certification (TIC). During
the site visit, several unit files were missing the copies of the applicant screenings and initial application (units
affected 4B, 7A, 8B, 9A, 10A, 13A, 15B, 19A, 24A, 29A, 35A and 39A). All of the items were obtained from
separate files and provided during the review, therefore no findings were issued. It appears that the issues stem
from not properly filing tenant documents. If management decides to keep separate files for different program
requirement, section off the file into program sections, or submit files to a compliance department for review and
approval, management must ensure that each tenant file, sections of the tenant file, or approved compliance file
contains all required forms moving forward.
3
Jose Antonio
Escajeda
Apartments
88
Los Ebanos
Apartments
65
710 South Park
El Paso, TX
10/27/2015
2133 Barnard Road
Brownsville, TX
03/24/2015
Peppertree
Apartments
148
6555 Sheridan Circle
Fort Worth, TX
06/16/2015
Observations:
·
River Park
Village East
Apartments
50
Salem Village
Apartments
105
Sierra Vista
Apartments
106
Spring Terrace
Apartments
50
1309 Central Texas
Expressway
Lampasas, TX
02/18/2015
5201 John Stockbauer
Drive
Victoria, TX
01/30/2015
10501 Montwood
El Paso, TX
10/26/2015
2600 S. Spring Street
Amarillo, TX
07/07/2015
It appears that more time and attention needs to be spent on maintaining organized tenant files. Since tenant files
are divided into tabs it is important to ensure that each tab has all required documentation, as intended. TSAHC
suggests management conduct a file review when there is down time to ensure that required documents are placed
in each tab to minimize disorganization.
Win-Lin Village
Apartments
50
5700 Wabash Street
Amarillo, TX
07/07/2015
Note: All findings have been cleared.
4
TSAHC Portfolio
2015 Asset Oversight Review Summary
DALCOR
Property
Name
# of
Units
Location
Audit
Date
Average 12
month
Occupancy
from Audit
Date
Occupancy
as of
December
Pine Club
232
5015 Pine Street
Beaumont, TX 77703
06/24/2015
92.4%
89.2%
Annual Summary
No Finding: No Findings
Observations:
·
·
·
Ridgewood
232
2830 lake Road,
Huntsville, TX 77340
03/202015
86.8%
84.9%
On the day of the site visit the majority of the grounds and parking lot had
an abundance of litter (pictures attached). Trash/litter has been noted on
consecutive reports and it is suggested that an action plan be administered
to create a much better curb appeal for the community. It is recommended
that the maintenance staff implement a schedule for trash pickup numerous
times per week and place additional trash cans throughout the grounds. In
addition, it is recommended that residents receive an announcement
regarding proper trash disposal.
The police reports for 2015 compared to a similar time frame in 2014 reflect
an increase in crime related incidents from 45 to 103 (130%) The property
should continue to submit monthly crime reports to TSAHC on the 10th of
each month, which includes documentation to support all proactive
measures taken and copies of the 911 call logs. It is highly recommended
that management take necessary measures to create awareness in the
community regarding the type of incidents occurring and continue to
implement measures to make the property safer.
The Work Order Directory provided reflects 26 open work orders that have
not been completed. All open work orders have a status of “call”.
Management stated that the status of “call” means that the resident likely
opened the work order by calling the emergency number and in turn the
work order was created by the answering service. It appears that either the
work orders are not being completed or the work orders are not being
closed properly. In many cases, it looks like duplicate work orders have
been created for the called in item. In an effort to minimize the chance a
maintenance request gets overlooked, it is highly recommended that an
accurate report be kept and a more diligent approach be taken for work
orders requested through calls.
Observations:
·
The amount of overall incidents regarding criminal activity has increased by
30% from last year’s report to this year’s report. The main reason for the
overall increase is the drastic increase regarding domestic disturbance
calls. The three months leading up to the site visit reflected eight domestic
incidents in 2014 and twenty-two in 2015 (175% increase). It is highly
suggested that management review the 911 incident report regularly to get
1
a good grasp on units/residents who seem to have repetitive calls/incidents.
TSAHC recommends management create a plan of action to reduce the
amount of crime and/or revise the current management policy. The action
plan and incident fluctuation will be thoroughly monitored in the 2016 site
review.
Saddlewood
232
3625 Wellborn
Bryan, TX 77801
03/19/2015
83.4%
91.4%
Observations:
·
·
·
·
Tealwood
180
5300 Professional Dr.,
Wichita Falls, TX 76302
05/12/2015
87.5%
81.1%
On the day of the site visit, the landscaping around the office and
throughout the community was well maintained and the grounds appeared
to be in good condition. However, it appears that the lawn service mowed
the property while the grounds were very wet, leaving a large amount of
ruts and tire tracks. It is suggested that management postpone any
scheduled lawn servicing when the grounds are saturated.
The Traffic report provided has 38 events with “N/A” listed as the source.
Out of those 38 events, 11 applicants were approved. The traffic labeled
“N/A” has the highest lease ratio out of all other sources. It is highly
suggested that a more specific source be sought and selected in an effort
to more effectively monitor traffic activity and marketing methods.
Service requests are not being opened or closed daily in the software
system. The work order directory reflects that 60 of the 198 (30%) work
orders opened from February 1, 2015 to Match 16, 2015 took longer than 7
days to complete. The report also reflects 34 outstanding work orders.
Resident retention/satisfaction is often strongly related to the maintenance
program. Diligent and daily use of the software system is strongly
recommended.
Management stated that company policy is to turn vacant units within 7-10
days. There are currently 27 units that are vacant and not ready. The
average days vacant for the 27 units exceeding the company policy is 132
days. The company policy is not being followed therefore it is suggested
that management implement a make ready plan that will assist the
maintenance staff to be able to complete make readies in the appropriate
amount of time, or change the policy on the number of days to turn a unit.
Observations:
·
·
During the site visit, the MSDS binder was located in the management
office and not in the maintenance area. It is essential to the protection of
the staff and property for the MSDS binder to be located in the area where
the materials and chemicals are stored. Management is highly advised to
address the issue. If this becomes a repeat issues moving forward, the
issue will result in a Finding.
Management is reminded that the USR is a tool used to ensure program
compliance. The USR should be updated monthly and should be a snap
shot of the current composition of the property. Management is advised to
update the USR to reflect accurate move-out dates for units 521, 603, and
623.
·
2
Willow Green
336
8301 Willow Place
Drive North, Houston,
TX 77070
06/23/2015
96.1%
94.6%
Observations:
·
·
·
·
·
On the day of the site visit the majority of the exterior condenser HVAC
units have coils that need to be cleaned (picture attached). Clean exterior
coils on the HVAC’s condenser will help the unit run more efficiently and
decrease the chance of the fan motor or other condenser items breaking.
The amount of criminal activity according to the reports provided has
remained at a low level for 2 consecutive years. However, the amount of
personal assault has doubled. The property should continue to submit
monthly crime reports to TSAHC on the 10th of each month, which includes
documentation to support all proactive measures taken and 911 call logs.
The preventive maintenance schedule provided during the site visit reflects
that no preventive maintenance was completed for May and June.
Management stated that the large amount of rain received in the Houston
area has not permitted the staff the opportunity to stay on schedule, and it
has redirected the priorities away from the preventive maintenance. It is
suggested that staff get back on schedule regarding the preventive
maintenance as soon as possible.
According to the Work Order Directory report, it appears that staff is not
doing a diligent job of opening and closing work orders, or staff is not
completing the work timely. Below are a few concerns that reflect
inconsistencies in the work order process:
o
The report submitted for review, dated May 22, 2015 through
June 22, 2015, has 19 work orders open and not completed. The
majority of the open work orders have a status of “call”.
Management stated that the status of “call” means that the
resident likely opened the work order by calling the emergency
number, and in turn the work order was created by the answering
service. It is likely that the incomplete work orders with “call” as
the status are work orders created by the answering service. It
appears that the work orders opened by the answering service
are either not being closed/cancelled or duplicate work orders are
being created.
o
A large portion of work orders was found to be closed on the
same day.
o
The average completion time for the Work Order Directory is 5.7
days.
o
Four work orders were found to have closed dates prior to the
call/open date.
Resident retention and satisfaction is often strongly related to the
maintenance program. It is important that all work orders be updated on a
daily basis to monitor the effectiveness of the maintenance staff and the
maintenance program. TSAHC suggests staff properly open and close work
orders. It is also important that both management and maintenance staff
that are responsible for opening and closing work orders be diligent and
make sure the information being entered is accurate. TSAHC also suggests
management and maintenance staff work together to create an action plan
that addresses the amount of open/incomplete work orders and the
average time frame for completing work orders.
Management stated that company policy is to turn vacant units within 7
business days. Currently, there are 14 units that are vacant and not ready.
The average days vacant for the 14 units is 34 days, which exceeds the
company policy. The company policy is not being followed, therefore
TSAHC suggests management implement a make ready plan that will
3
assist the maintenance staff in completing make readies in a reasonable
amount of time, or revise the company policy to more accurately reflect the
number of days it takes to turn a unit.
Woodglen I & II
232
6800 South Cockrell
Hill Road, Dallas, TX
75236
09/12/2015
97.1%
97.4%
Observations:
·
·
The report provided, which ranges from August 23, 2015 through
September 23, 2015, has thirty work orders open and not completed.
Seven of those work orders are recently opened but twenty-three of them
range from two to twenty-four days old. The majority of the open work
orders have a status of “call”. It is likely that the incomplete work orders with
“call” as the status are either work orders created by the answering service,
work orders that should possibly be cancelled, and/or work orders that have
been completed but the system has not been updated. It is strongly
suggested that these work orders be reviewed and completed if they are
found to be outstanding. It is also suggested that notes be attached to work
orders in the cases where parts are being ordered or other delays are
occurring. A diligent work order report can lead to timely completion of work
orders, which in turn leads to satisfied residents.
The Traffic Sheet provided by management used a time frame from August
23, 2015 through September 23, 015. The Traffic Sheet appeared to have
some inconstancies; the traffic source appeared more than once on the
report and prospects are sometimes showing up twice under source
sections with the same title. For example, the source “Apartment Finder”
shows up on page 1 of the report with a total count of 13 entries and
“Apartment Finder” shows up again on page 7 with 6 additional entries. Of
the 6 additional entries, 2 of the prospects are repeats from page 1. It is
suggested that management review the inconsistencies of this report, and if
a prospect that has been cancelled returns, reopen the previous entry
reopened as opposed to creating a new entry.
Mary Lee Foundation
Property
Name
# of
Units
Location
Audit
Date
Average 12
month
Occupancy
from Audit
Date
Occupancy
as of
December
The Willows
64
1322 Lamar Square
Drive, Austin, TX
78704
09/17/2015
88.8%
98.4%
Annual Summary
Findings:
·
The wooden enclosure to the right of the parking lot entrance is
damaged. Additionally, a “No Parking” sign located in front of an
electrical box in the parking is bent (pictures attached). Management
must secure the wooden enclosure and realign the parking sign. Submit
copies of completed work orders to TSAHC no later than November 6,
2015. Cleared 10/21/2015.
·
On August 12, 2015, TSHAC requested local police reports (911 call
sheet) for the three month timeframe prior to the onsite visit (onsite visit
date September 17, 2015). To date, the requested police reports have
not been submitted. Please submit requested documents to TSAHC no
later than November 6, 2015. This is a Repeat Finding. Finding not
cleared.
4
·
During the review of the laundry room, it was noted that two washers and
one dryer are inoperable. Inoperable washer/dryers were noted in the
2014 Asset Oversight Report. As mentioned in the previous year’s asset
oversight report, the apartment units do not provide washer dryer
connections, therefore, it is important that management repair and/or
replace the inoperable washer/dryers machines. Submit written
documentation to support that all washer/dryers are operable in the
laundry facility to TSHCA no later than November 6, 2015. Cleared
09/14/2015.
·
During the physical inspection of units it was revealed that management
did not have a key to unit 406 which was listed as a vacant unit on the
August 2015 Unit Status Report. During the exit interview it was revealed
that an employee (maintenance technician) resides in the unit. In order to
have full accountability of the occupancy at the property and to maintain
the health and safety of the resident and the asset, it is imperative for
management to have access to all units within the community. Therefore,
management must submit written certification that a copy of the key to
unit 406 has been made and is kept in the management office no later
than November 6, 2015. Cleared 01/15/2016.
·
An employee may reside in a low-income unit if one of these two
circumstances is met: 1) the household qualifies as a low-income
household, or 2) the employee does not pay rent for the unit thus making
it an “Exempt” unit. Therefore, management must submit a copy of the
executed Income Certificate with supporting income and asset verification
to support household eligibility or a copy of the rent roll to support that the
employee does not pay rent making this an “exempt” unit. Please submit
the relevant documentation to TSAHC no later than November 6, 2015.
Cleared 11/23/2015.
Observations:
·
The property hallways look dingy in a few small areas. Management
stated they have not power washed the hallways since the water leaked
into the elevator which resulted in a major elevator repair expense.
Management mentioned that the maintenance staff continues to monitor
the hallways and cleans areas that appear dirty. TSAHC suggests
management increase the frequency of visual hallway checks to ensure
that the hallways remain clean.
Guadalupe Economic Services Corporation (GESC)
Property
Name
# of
Units
Location
Rita Blanca
50
701 Maynard St.,
Dalhart, Texas 79109
Audit
Date
07/08/2015
Average 12
month
Occupancy
from Audit
Date
Occupancy
as of
December
82%
92.8%
Annual Summary
Observations:
·
Management has not provided TSAHC with the requested police reports for
this and the previous Asset Oversight and Compliance reviews. Prior to the
onsite visit, the reviewer provided management staff with detailed
information specific to requesting police reports (i.e., call logs) for the
5
Dalhart Police Department. During the onsite visit, the reviewer discussed
the importance of being familiar with the criminal activity occurring, if any, at
the property. It is important that management periodically review police call
logs to monitor activity, if any, and issue lease violations, if necessary.
TSAHC strongly suggests management establish a positive and effective
working relationship with the local police department.
·
On June 9, 2015 site visit notification letters were sent to the owner, owner
representative, and management agent (via email) of Rita Blanca which
notifies them of the onsite visit, lists the reports needed prior to the day of
the onsite visit, and notifies them that a limited physical inspection of at
least three units will be completed. However, on the day of the onsite visit, it
was confirmed that the Property Manager was not aware of the site visit
and that resident notifications of unit inspection were not issued to residents
in a timely manner. This resulted in the reviewer not being able to physically
inspect units. It is the owner’s responsibility to ensure that a property is
available and ready for annual monitoring and review by TSAHC. TSAHC
strongly suggests owners notify the site manager of all correspondence
relating to TSAHC’s annual onsite monitoring visit in the future.
Common Wealth
Property
Name
# of
Units
Location
Audit
Date
Average 12
month
Occupancy
from Audit
Date
Occupancy
as of
December
White Rock
Apartments
336
3110 Thousand Oaks
04/21/2015
95.3%
95.8%
Annual Summary
Observations:
·
The Primary Advertising Source Evaluation report provides a list of traffic
methods which include “1Other” with 17 prospects and “Other” with 13
prospects. As noted in the previous year’s Asset and Oversight report,
TSAHC suggests that management edit the report and create more specific
line item titles to appropriately categorize a source of traffic. In addition and
as noted in the previous year’s Asset Oversight report, if Locator Services
are not being paid, TSAHC suggest the budget line item be allocated to a
more appropriate line item.
Caesar Chavez Foundation
Property
Name
# of
Units
Location
Audit
Date
Average 12
month
Occupancy
from Audit
Date
Occupancy
as of
December
Aguila Oaks
346
3270 Nacogdoches
04/22/2015
96.5%
94.2%
Annual Summary
6
Odyssey Properties
Property
Name
# of
Units
Location
Audit
Date
Average 12
month
Occupancy
from Audit
Date
Occupancy
as of
December
Marshall
Meadows
250
1803 Marshall Cross
San Antonio TX
04/20/2015
98%
96.8%
Annual Summary
Findings:
·
During the site visit, all trash receptacles appeared to be overfilled. The
overflow of garbage appears to be spilling onto the grounds of the
community. The trash receptacle issue was noted during the subsequent
property inspections conducted by TSAHC. It is recommended that larger
receptacles be used or more frequent pickups be scheduled. It appeared
the main reason for the overflowing dumpsters is the disposal of large
items. (Pictures attached) It is suggested that management notify residents
about proper disposal of large items. Please provide TSHAC with a detailed
schedule of how overflowing trash will be minimized moving forward. The
plan for addressing the overflowing trash receptacle finding is due to
TSHAC by 6/18/2015. Cleared 06/12/2015.
Vacant/Make Ready Units
·
·
Unit 1133 is not moved out on the USR. The AOS and Daily Activity report
reflect that a move out occurred 11/30/14. Unit 1133 must be up updated
on the USR so that TSHAC can properly monitor the extended vacancy.
Unit 1133 is designated as affordable in reference to the community
meeting the set aside requirements. The clarification and correction of the
discrepancy is due to TSHAC by 6/18/2015. Cleared 06/12/2015.
The high delinquent balance was noted on the 2014 report as an
observation. The delinquent balances have increased from 2014 to 2015 by
60%. The management policy mentioned above is to make vendor
payments net 30-45 days of the invoice date. The accounts payable report
dated 4/20/2015 reflects an outstanding balance of $102,721 greater than
60 days old. The majority of the outstanding balance is made up from 10
different vendors. These vendors include a foundation repair provider, fire
protection service, trash compactor repair technician, landscaping, social
services, a flooring company, maintenance Supply Company, the San
Antonio water system, and a private repair person who has competed
numerous jobs. The accounting and regional manager informed TSHAC
that the management company has submitted reserve draws to pay the
outstanding balances. Once the reserve draws funds come in the extended
delinquency payments will be made. Management must provide TSHAC
with an updated accounts payable report by 6/18/2015. Cleared
06/12/2015.
Observations:
·
Numerous residents appeared to be using BBQ pits for cooking outside
the unit. Bexar county fire code prohibits BBQ pits or grills from being
used within 10 linear feet of the balconies or porches (308.1.4.1). During
the site visit, no BBQ pits were found to be in use on the porches,
however many were found to be left in the common space of the
community. One BBQ pit was found in the breezeway of the 2nd floor,
while a few others were found behind the buildings. (Pictures attached) It
appears that a memo needs to go out to the residents outlining the local
fire code and the community policy for proper storage and use of BBQ
7
pits.
·
During the previous site visit, management stated that quarterly power
washing is scheduled for the breezeways. During the 2015 site visit, the
community does not appear to be receiving the regular power washing.
Since the breezeways remain dirty and/or stained, it is recommended that
frequent power washing is scheduled.
·
Item 4 above mentions that the light checks are conducted monthly. Last
year’s report reflects that light checks were conducted nightly. If light
check frequency has decreased from last year to this year, it is suggested
that the property revert back to what was being done last year. More
frequent observation of the exterior lighting at the property is
recommended.
·
After review and discussion of the criminal reports provided, it is
suggested that management pull the 911/incident reports more frequently
and examine the reports for repeat offenders, problematic units, and
ongoing issues.
·
Eleven of the 28 open work orders have a priority level of either high or
emergency. The eleven work orders with a high or emergency priority
level are greater than 72 hours old. It is highly recommended that any
and all emergency work orders get completed within 24 hours and items
with a high priority level get completed in less than 3 days. It is also
suggested that items with high priority levels are completed ahead of
items with low or medium priority levels.
·
The renewal and daily activity reports provided did not give enough
information to accurately determine the lease renewal percentage for
March 2015 or the last six months. The amount of move outs over the
last 12 months (137) factored in to the amount of occupied units over the
last 12 months (245) reflects that about 66% of the residents have
chosen to move out or not renew. Resident retention is strongly related to
the overall financial success of the property and if the property has a low
resident retention percentage the property will most likely experience an
increase in expense for marketing, make readies and maintenance. It is
suggested that management always know the resident retention
percentage or have access to reports that provide the information. It is
also a good practice to continue to survey the residents and monitor the
reasons for move out report or a report that is similar. If you pull and
review this report regularly it can assist you with determining what needs
to be corrected at the community in order to increase resident retention.
The Reasons for Move Out report was not provided to TSHAC during the
review.
Vacant/Make Ready Units
·
Unit 312 has a vacated date of 8/31/2014 on the AOS. The USR and
Daily Activity reports reflect a vacated date of 4/13/2015.
·
Unit 527 has a date ready of 3/14/2014 on the AOS. The USR report
reflects a move out date of 3/31/2015. The unit and the move out date
are not entered on the Daily Activity report.
·
Unit 914 has a date ready of 2/14/2014 on the AOS. The USR and Daily
Activity reports reflect a vacated date of 3/31/2015.
·
Unit 936 has a vacated date of 4/1/2015 on the AOS. The USR has a
vacated date of 4/14/2015.
·
Unit 1233 has a vacated date of 12/31/2013 in the AOS. The USR has a
vacated date of 4/8/2015. AOS has a vacate date of 12/31/2013.
8
It appears that the correct vacated and ready dates are not being entered
on the AOS report. It seems that the dates for the units that moved out
prior to the current move out are often being left in the fields on this
report. Having incorrect dates is creating discrepancies between the
internal reports provided for review and the USR submitted to TSHAC. In
addition, the make ready and vacancy days on the AOS are being
calculated incorrectly by the system. The AOS also shows ready dates
for units that are not ready. For example, units 527 and 914 have ready
dates but the physical inspection determined these units are not ready. It
is strongly suggested that a diligent approach to entering these units and
their dates is followed. An accurate depiction of how long it takes a unit to
be ready and the total vacant days of all vacant units is something that is
extremely valuable to managers and the success of the property.
Rainbow Project
Property
Name
# of
Units
Location
Audit
Date
Average 12
month
Occupancy
from Audit
Date
Occupancy
as of
December
Chaparral Village
Apartments
80
1411 S. Grant Avenue
Odessa, TX 79761
02/11/2015
98.4%
97.5%
Annual Summary
Cove Village
Apartments
50
1102 Golf Course Road
Copperas Cove, TX
76522
02/18/2015
100%
100%
El Nido
Apartments
104
204 Alicia Drive
El Paso, TX 79905
10/26/2015
99%
100%
Garden
Apartments
62
1340 65th Drive
Lubbock, TX 79412
02/12/2015
94.4%
93.6%
Findings:
·
Management stated that they had a large plumbing repair completed in
2014. The area where the plumbing leak was fixed and where the
construction equipment was used was left unleveled. In addition, the
picnic area near the plumbing repair was left covered with dirt and messy.
It is essential to the curb appeal of the community to clean the picnic area
and level the ground where the plumbing repair was fixed. Proof of these
repairs must be submitted to TSHAC no later than 4/5/2015. Cleared
01/28/2016.
Observations:
·
Based on a review of the Maintenance Summary Report, it appears
management or maintenance is not creating or closing service requests
in the software system. The report reflects that only 13 work orders have
9
been closed in the last 30 days. Resident retention/satisfaction is often
strongly related to the maintenance program. The software system in
place can help with efficiency and decrease the possibility of lost or
incomplete work orders. It is strongly suggested that management begin
to appropriately utilize the software system and enter and close all work
orders timely.
·
According to the Primary Advertising Source report, only two new
prospects have visited or called the property in the last 30 days. The
property does not appear to be entering all the traffic properly on the
report. In addition, the two entries are listed as “other”. Although the
property has a high occupancy and a waiting list, the turnover rate does
appear to be high. It is essential to know when and where traffic is
generated from. It is highly recommended that management begin
entering all traffic into the report with a specific source so management
will know how to properly market the property if the future demands it and
to monitor the property’s traffic activity more effectively.
·
The Reasons for Move-out report provided reflects that in the last 12
months twenty-seven residents have moved out (43.5%). Fifteen of the
twenty-seven move-outs (55.6%) have been initiated by the tenant.
Management stated that many of the tenant initiated move outs are due
to the Housing Authority of Lubbock issuing tenant based vouchers
through the Housing Choice Voucher program. It is recommended that
management review the current resident retention program and
determine if there are areas for improvement. A survey of the residents is
recommended to assist with determining the reasons for the high
turnover rate.
·
Bad debt for December was budgeted at $146; the actual bad debt was
$1,251, which is an increase of 850%. The Year to Date (YTD) bad debt
budgeted for the end of December 2014 was $1740; the actual bad debt
for the end of 2014 is $6,889, which is an increase of about 400% over
what was expected. It is highly recommended that rent collection letters
and notices to vacate are posted punctually and evictions are filed and
followed through.
·
Management stated that invoices are processed weekly; however, on the
day of the review $13,358 of the outstanding payables balance on the
Vendor Aging Report was found to be aged more than 30 days.
Management is encouraged to thoroughly review the current outstanding
debt at the property regularly. Management provided an updated Vendor
Aging Report the day following the review. The updated report reflects
that the community is in good standing with all vendors that were initially
a concern.
·
The Delinquent and Prepaid Report provided as of December 31, 2014
reflects $30,825 in delinquent rent and housing subsidy accounts for
$5,263 (17.1%). Management stated that new move-ins and interim
certifications with the Lubbock Housing Authority account for the majority
of the delinquent rent for subsidy. It is recommended that annual
Renewals with the Housing Authority need to be filed promptly and
followed up on regularly.
·
The majority of delinquent tenant rent is more than 90 days old and the
balance is $20,815. Twenty-three delinquent households (37%) have a
balance greater than 90 days, and 10 of these households have a
balance greater than $1,000. The 10 households with a balance greater
than $1,000 have a total delinquent balance of $20,415. The 10
households with a large balance have an average monthly tenant rent
10
payment of $194 per household. Management stated that they have a list
of household that are set up on payment plans for delinquent rent. Rent
collection letters and notices to vacate need to be posted punctually and
evictions need to be filed and followed through. In addition, future and
current payment plans need to be thoroughly evaluated to ensure the
property is limiting the amount of bad debt.
·
High Plains
Apartments
50
1607 Iola Avenue
Lubbock, TX 79416
02/12/2015
95%
92%
The budget for the month of December 2014 has an effective gross
income for tenant rent of $4,822; the amount outstanding for that time
frame is $1,720, meaning that about 64% of the rent was collected for the
month of December. It is strongly suggested that a more diligent
approach regarding rent collection be put in place.
Observations:
·
·
·
·
·
Based on a review of the Maintenance Summary Report, it appears
management or maintenance is not creating or closing service requests in
the software system. The report reflects that only 3 work orders have been
closed in the last 30 days. Resident retention/satisfaction is often strongly
related to the maintenance program. The software system in place can help
with efficiency and decrease the possibility of lost or incomplete work
orders. It is strongly suggested that management begin to appropriately
utilize the software system and enter and close all work orders timely.
According to the Primary Advertising Source report, 37 new prospects have
been to or called the property in the last 30 days. The property does not
appear to be entering the traffic properly on the report. Thirty-five of the
thirty-seven entries are labeled as “other”. Although the property has a high
occupancy and a waiting list, turnover does appear to be high. It is essential
to know when and where traffic is generated from. It is highly recommended
that management begin entering all traffic into the report with a specific
source so management will know how to properly market the property if the
future demands it and to more effectively monitor the property’s traffic
activity.
The Reasons for Move Out report provided reflects that in the last 12
months twenty-five residents have moved out (50%). Eleven of the twentyfive move-outs (44%) have been initiated by the tenant. Management
stated that many of the tenant initiated move outs are due to the Housing
Authority of Lubbock issuing tenant based vouchers through the Housing
Choice Voucher program. It is recommended that management review the
current resident retention program and determine if there are areas for
improvement. A survey of the residents is recommended to assist with
determining the high turnover rate.
Management stated invoices are processed weekly; however, on the day of
the review $3,346 of the outstanding payables balance on the Vendor
Aging Report was found to be aged more than 30 days. Management is
encouraged to thoroughly review the current outstanding debt at the
property regularly. Management provided an updated Vendor Aging report
the day following the review. The numbers to the right are a reflection of the
updated report and the community appears to be in good standing with all
vendors that were initially a concern.
The Delinquent and Prepaid Report provided as of December 31, 2014
reflects $10,415 in delinquent rent and housing subsidy accounts for $4,436
(42.6%). Management stated that new move-ins and interim certifications
with the Lubbock Housing Authority account for the majority of the
delinquent rent for subsidy. The majority of delinquent tenant rent is more
11
than 90 days old and has a balance of $4,725. Eight delinquent households
have a balance greater than 90 days old, and 3 of the eight households
have a balance greater than $1,000. Management stated that they have a
list of households that are set up on payment plans for delinquent rent. It is
strongly suggested that a more diligent approach regarding the rent
collection be put in place. Rent collection letters and notices to vacate need
to be posted punctually and evictions need to be filed and followed through.
Annual renewals with the Housing Authority need to be filed promptly and
followed up on regularly.
Jose Antonio
Escajeda
Apartments
88
710 South Park
El Paso, TX 79905
10/27/2015
97%
98.9%
Findings:
·
During the physical inspection of units deficiencies were noted in units 43
and 93. A completed work order for the items noted in unit 93 was
submitted prior to the issuance of this report. However, the issues in unit
43, deteriorating paint underneath the guest bedroom window ledge has not
been completed or a completed work order has not been submitted.
Management must submit copies of the completed word orders for unit 43
to TSAHC no later than December 19, 2015. Cleared12/09/2015.
Los Ebanos
Apartments
65
2133 Barnard Road
Brownsville, TX 78520
03/24/2015
99.6%
100%
Peppertree
Apartments
148
6555 Sheridan Circle
Fort Worth, TX 76134
06/16/2015
96%
95.3%
Findings:
·
·
The Asset Oversight and Compliance reports for the two previous onsite
visits have listed similar criminal activity (i.e., burglary and drug activity).
While the number of incidents remains relatively low, the incident types
need to be addressed. Therefore, management must provide TSAHC with
an plan of action explaining the steps management will take to create a
better working relationship with the Fort Worth Police Department, how
management will address criminal activity listed on the Crime Stats report,
and what measures management will take now or in the future to add
security measures for each site (i.e., confirmed courtesy patrol drive-bys,
hire courtesy officer, and/or install security cameras). The plan must also
list the frequency of when reports will be requested. The plan of action is
due to TSAHC no later than 07/30/2015. Cleared 07/22/2015
Based on a physical review of the units, management must provide TSAHC
with a plan of action to eliminate the insect (roach) infestation throughout
the property. The plan of action must include measures management will
take to remedy the infestation. The plan can include, but is not limited to,
creating and implementing a housekeeping agreement, review/revise
housekeeping policy and/or increased number of home inspections
conducted by management, document/issue violations for poor
housekeeping, create an exterminating service plan to ensure entire
buildings (interior and exterior) are being treated. The plan must also
provide a detailed explanation of how vacant units will be treated moving
forward. This may include, but is not limited to, cleaning out vacant units
immediately after move-out, patching up all holes in walls as soon as moveouts occur and scheduling extermination services. Management is
responsible for providing safe, decent, and sanitary units. The plan of action
is due to TSAHC no later than 07/30/2015. Cleared 07/22/2015
12
River Park
Village
Apartments
50
1309 Central Texas
Expressway
Lampasas, TX 76550
02/28/2015
100%
100%
Salem Village
Apartments
105
5201 John Stockbauer
Drive
Victoria, TX 77904
01/30/2015
98.7%
100%
Observations:
·
On the day of the site visit three of the four dumpsters were found to be
overflowing. (Pictures attached) Management explained that the
residents cleaned their units in preparation for the inspection and that
overfilled dumpsters are very uncommon. The reviewer encouraged more
frequent trash pickup or an additional dumpster if the trash load for the
community dictates it.
·
The fences around the perimeter of the property have a few holes and
are missing pickets. Management stated that they are aware of the fence
issues and they are set to be fixed in the very near future.
Bad debt for the month of December was budget at $100 and the actual
Bad debt totaled $2,171. Year to Date Bad debt was budgeted at $1200
and the actual Bad debt totaled $2,890. Seventy-five percent of the
community’s bad debt for 2014 took place in December. Management
stated that unexpected evictions are the cause for the majority of bad
debt. It is strongly suggested that a more diligent effort is made towards
enforcing rent collection, posting notices and filing timely evictions for
non-payment of rent. Management stated that they had some issues with
resident promising rent payments but not following through. It is
recommended that the management policy regarding rent payment plans
is reviewed and that a more stringent effort is made toward collecting late
rent.
The 2013 asset oversight report reflected that 71% of work orders were
being completed in more than 72 hours after they were opened. The
Maintenance Summary Report provided during the 2015 site visit reflects
that 79% of work orders are being completed in more than 72 hours after
they are opened. In addition, only 4 work orders, less than 8%, were
completed in less than 24 hours. It appears that the maintenance
program is trending negatively regarding turn times on work orders.
Resident satisfaction and retention often ties directly into the
maintenance program, therefore it is strongly suggested that a more
diligent effort is made towards completing work orders timely. In addition,
opening and closing work orders daily will help the maintenance program
monitor itself properly.
·
·
Sierra Vista
Apartments
106
10501 Montwood
El Paso, TX 79935
10/26/2015
99.4%
98.1%
Findings:
·
On the day of the site visit, a waste receptacle had a small amount of graffiti
on in. Management must provide TSAHC with pictures and a closed work
order showing that the graffiti was removed no later than December 19,
2015. Cleared 12/09/2015
Observations:
13
·
·
·
Spring Terrace
Apartments
50
2600 S. Spring Street
Amarillo, TX 79103
07/07/2015
99%
100%
Discolored building walls: Management used a different exterior wall paint
color to cover graffiti on the property. Management is advised to use the
same exterior paint color when covering graffiti to ensure the property
maintain its curb appeal.
Shopping Cart: This item was noted on the previous report. Management
stated they continue to battle this issue as they are located behind a
grocery store. Management was advised to create and implement
strategies to help determine which residents are leaving carts on property
grounds.
Cable Boxes: This item was noted on the previous report. The Property
Manager sated she has contacted the cable company and confirmed that
the cable company came out and fixed some but not all of the boxes due to
work order/work load. The Property Manager stated there are consistently
about one or two boxes that fall apart. Management asked the cable
company if they could repair or replace the cable box covers however the
cable company did not agreed to do this. Management is advised to
implement a strategy to monitor this issue and create work order calls with
the cable company to visit the property on a quarterly basis.
Observations:
Win-Lin Village
Apartments
50
5700 Wabash Street
Amarillo, TX 79109
07/07/2015
96%
100%
·
TSAHC suggests management utilize the Maintenance Summary
Report’s tools to capture the accurate amount of time (hours and
minutes) it takes to complete work orders. This will help ensure
maintenance staff is completing work orders within the company policy
timeframe of one to three days. Resident retention and satisfaction are
often strongly related to the maintenance program.
·
TSAHC suggests management utilize the Reason for Move Outs Report
properly to have an accurate picture of the reasons residents move out
moving forward.
Findings:
·
As of the date of this report, unit 4 is designated as a down unit on the
Unit Status Report. In order for the unit to regain its low-income
designation, management must submit proof that the unit is habitable and
available to the general public in the form of invoices, completed work
orders, pictures of completed repairs (bedroom, bathroom, and kitchen),
and copies of an executed Tenant Income Certification confirming
program eligibility to TSAHC. Documentation must be submitted to
TSAHC by 8/31/2015. Cleared 08/28/2015.
Observations:
·
TSAHC suggests management utilize the Maintenance Summary
Report’s tools to capture the accurate amount of time (hours and
minutes) it takes to complete work orders. This will help ensure
maintenance staff is completing work orders within the company policy
timeframe of one to three days. Resident retention and satisfaction are
often strongly related to the maintenance program.
·
TSAHC suggests management utilize the Reason for Move Outs Report
properly to have an accurate picture of the reasons residents move out
moving forward.
14
Asset Oversight Contract Properties
Property
Name
# of
Units
Location
Audit
Date
Average 12
month
Occupancy
from Audit
Date
Occupancy
as of
December
Residence at the
Oaks 1998-002
212
2740 Duncanville Rd
Dallas, TX 75211
09/24/2015
99.3%
99.1%
Annual Summary
Note: All findings but one has been cleared. The finding and response for The Willows is noted below.
Finding: On August 12, 2015, TSHAC requested local police reports (911 call sheet) for the three month timeframe prior to the onsite visit (onsite visit date September 17, 2015). To date, the
requested police reports have not been submitted. Please submit requested documents to TSAHC no later than November 6, 2015. This is a Repeat Finding.
Response: The response submitted on January 19, 2016 states that the Board for The Willows voted not to provide the requested documentation. This action has been noted.
15
Tab D
Report on Veteran
Homelessness in Texas
TSAHC Board of Directors Meeting
March 24, 2016
Texas Interagency Council for the Homeless
•
•
Created by the Legislature in 1995
Includes representatives from 11 state agencies and an Advisory
Board
– David Long serves on Advisory Board and as Chair of the Subcommittee
on Affordable Housing and Supportive Services
•
Council’s duties are outlined in the Texas Government Code
§2306.905
– Main function is to coordinate the state’s resources and services to
address homelessness
– May use Texas Homeless Network as a resource to execute functions
– Tasked with creating an annual progress report on homelessness
2
TSAHC’s Involvement with Homelessness
•
Texas Foundations Fund
– Awards have been used for supportive services offered as part of
Permanent Supportive Housing for individuals and families who
have experienced homelessness or are at-risk of experiencing
homelessness
– Examples include The Women’s Home (Houston), New Hope
Housing (Houston), LifeWorks (Austin), Green Doors (Austin),
Tarrant County Samaritan House (Fort Worth), Salvation Army of
Tyler
3
Landscape of Veteran Homelessness
•
•
2393 Homeless Veterans in Texas
1490 Unsheltered
903 Sheltered
Point-in-Time Count: January 2015
Amarillo - 46
Wichita Falls - 1
Fort Worth - 193
Dallas - 291
El Paso - 92
Balance of
State - 653
Waco - 30
Brazos Valley - 2
Austin - 238
Houston - 563
San Antonio - 284
4
Sample Point-in-Time Veteran Summary
5
Mayor’s Challenge to End Veteran Homelessness
•
•
Call to action by First Lady Michelle Obama for Mayors to make
a commitment to ending veteran homelessness in their cities
Goal achieved by 21 communities and 2 states (Connecticut and
Virginia)
–
•
Signed by Mayors of the following Texas cities:
–
–
–
–
–
–
–
–
–
–
–
–
6
Houston was the first Texas city to achieve the goal
Austin
Corpus Christi
Crystal City
Dallas
El Paso
Fort Worth
Garland
Houston
Laredo
Plano
San Antonio
Waco
What Should Happen When a Veteran Experiences Homelessness?
•
•
•
•
•
7
A Veteran appears at any number of entry points (shelter,
hospital, food bank, correctional facility, etc.)
A Veteran receives a common assessment at a “trained” entry
point to determine his/her homeless chronicity and medical
vulnerability
The entry point contacts the holder of the community’s byname list so that the Veteran can be added
The community works to get the Veteran into an appropriate
intervention and case management as determined by the
assessment tool
Case management works with the Veteran to complete DD214
(condition of discharge) if necessary and determine what
benefits the Veteran may receive from the VA if necessary
What Works
•
•
•
•
•
Adoption of US Interagency Council on Homelessness benchmarks
and criteria to measure progress
Identify and manage all Veterans experiencing homelessness by name
Community and public official leadership
Strategic coordination and standardization of community resources
assessment
Housing solutions
– Bring all housing partners together on a regular basis – shelters,
transitional housing, Permanent Supportive Housing, Housing First, Public
Housing Authorities, and landlords of market rate units
– Provide immediate access to Permanent Supportive Housing for the most
vulnerable chronically homeless veterans
– Strategically use HUD-Veterans Affairs Supportive Housing Vouchers
– Help Veterans address barriers that prevent them from obtaining housing
– Help landlords remove barriers to housing and mitigate their risk
– Develop new units or designate existing units as “Housing First”
8
What are the Biggest Challenges
•
•
Lack of affordable housing
Barriers to housing
– Spectrum of adversities that face Veterans may include lack of
employment, steady income, substance use disorder, criminal
background, problems with the legal system, criminal history, etc.
– Landlords can refuse housing for any number of reasons
•
•
•
9
Lack of coordinated entry and data sharing between the VA and
community partners
Lack of local leadership on the issue
Lack of federal technical assistance available
Tab E
STATEMENT OF NET ASSETS (unaudited)
As of January 31, 2016
ASSETS
Current Assets
Cash and Cash Equivalents
$
Restricted Assets Held by Bond Trustee:
Cash and Cash Equivalents
Accrued Interest
Custodial Cash and Cash Equivalents
Investments, at Fair Market Value
Accounts Receivable & Accrued Revenue, Net of uncollectible amts. of $40,829
Accrued Interest Receivable
Loans Receivable, Current Portion
Notes Receivable, Current Portion
Downpayment Assistance, Current Portion
Prepaid Expenses
Total Current Assets:
3,177,943
168,410
309,230
3,440,876
273,074
44,987
65,000
685,374
1,932,390
46,882
11,711,062
Noncurrent Assets
Loans Receivable, Net of uncollectible amounts of $91,726
Notes Receivable
Investments, at Fair Market Value
Mortgage Servicing Rights, Net of Accumulated Amortization of $2,374,085
Fixed Assets, Net of Accumulated Depreciation of $633,416
Owned Real Estate, Federal & Other Programs Net of Accum Amort $126,879
Downpayment Assistance
Restricted Investments Held by Bond Trustee, at Fair Market Value
595,426
4,799,137
5,054,347
353,976
1,436,003
11,501,577
1,576,756
95,352,503
Total Noncurrent Assets:
TOTAL ASSETS
1,566,896
120,669,725
$
132,380,787
(continued)
STATEMENT OF NET ASSETS - Continued (unaudited)
As of January 31, 2016
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses
Notes Payable, Current Portion
Custodial Reserve Funds
Other Current Liabilities
Payable from Restricted Assets Held by Bond Trustee:
Bonds Payable, Current Portion
Accrued Interest on Bonds
$
1,621,441
925,162
Total Current Liabilities:
4,395,218
Noncurrent Liabilities
Notes Payable
Revenue Bonds Payable
Due to Federal Programs
Unearned Revenue
2,637,492
93,457,653
3,603,434
189,462
Total Noncurrent Liabilities:
99,888,041
Total Liabilities:
104,283,259
DEFERRED INFLOWS OF RESOURCES
Deferred Revenue
219,937
Total Deferred Inflows of Resources
219,937
NET POSITION
Invested in Capital Assets
Restricted for:
Debt Service
Other Purposes
Unrestricted
Total Net Position:
193,325
1,095,598
309,230
250,462
1,436,003
6,203,746
40,876
20,196,966
$
27,877,591
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (unaudited)
for the 5 months ending January 31, 2016
Operating Revenues
Interest and Investment Income
Net Increase (Decrease) in Fair Value of Investments
Single Family Income
Asset Oversight and Compliance Fees
Loan Servicing Fees
Multifamily Income
Land Bank Income
Public Support
Federal & State Grants
Contributions
Other Operating Revenue
Total Operating Revenues
Operating Expenses
Interest Expense on Bonds and Notes Payable
Salaries, Wages and Payroll Related Costs
Professional Fees and Services
Amortization
Office and Equipment Rental and Maintenance
Travel and Meals
Depreciation
Program and Loan Administration
Grant Expenditures
Foundation Fund Grants
Other Operating Expenses
Total Operating Expenses
$
$
$
$
Net Income
7,220
402,931
172,815
3,173,446
1,306,243
951,380
134,246
109,295
41,530
41,999
94,122
313,444
47,276
360,500
148,134
3,548,169
(374,723)
Total Net Position, Beginning
Total Net Position, Ending
1,909,812
(735,495)
1,051,828
87,747
45,923
91,045
139,620
28,252,314
$
27,877,591
Comparison of Budget to Actual
January 31, 2016
Annual
Budget
Actual
Percent of
Annual
Budget
Revenue
Servicing Revenue, Net of Subservicer Fees
Single Family
Multifamily Program Revenue
121,000
3,498,000
410,000
76,561
2,451,470
224,329
63%
70%
55%
Lending Program Revenue
ACT Program Revenue
289,000
276,000
469,604
88,866
162%
32%
Grants & Donations
Federal & State Grants
Investment Revenue
Tenant Revenue
740,000
192,000
45,000
357,000
21,932
23,358
18,470
161,858
3%
12%
41%
45%
3,536,448
60%
2,371,000
365,000
951,380
114,396
40%
31%
350,000
155,000
129,000
360,500
64,501
41,999
103%
42%
33%
37,000
43,000
19,331
20,372
52%
47%
114,000
115,000
35,359
29,300
31%
25%
27,000
18,000
15,000
10,284
7,409
5,525
38%
41%
37%
9,000
3,165
35%
6,000
8,000
19,000
1,501,000
3,811
7,575
9,857
480,421
64%
95%
52%
32%
141,000
5,423,000
14,450
2,179,635
10%
40%
505,000
1,356,813
Total Revenue
5,928,000
Expenditures
Salaries & Payroll Related Expenditures
Professional Services
Foundation Fund Grants
Principal & Interest on Notes Payable
Travel & Meals
Furniture, Equipment, & Software
Building Maintenance
Insurance
Marketing
Professional Dues, Conferences & Training
Communication
Sponsorships
Printing & Office Supplies
Freight, Delivery, Postage & Storage
Publications, Subscriptions & Other Office Expendi
Bank Fees & Charges
Single Family/Multifamily Program Expenditures
Federal & State Grant Expenditures
Total Expenditures
Net Income
Average Percent Expended = 42%
Reference
Comparison of Budget to Actual
January 31, 2016
Loan Servicing income is higher than budgeted because there has been less run off associated with the
the loans serviced in Bond Programs 52, 53 and 54. Consequently we are receiving more income than anticipated.
As of January 31st the Corporation has already received $42,400 of the $50,000 (85%) budgeted for the year.
Budgeted Single Family Revenue appears high because of the timing of down payment assistance reimbursements made to
the Corporation. Through January 31, 2016 the Corporation received $863,000 in DPA reimbursement.
Lending Program revenue is over budget due to the unexpected payoff of a Direct Lending Program note in the amount of
$291,107 in November 2015.
Grants & Donations are lower than budgeted due to the timing of the receipt of grant funds. We expect that this line item will be
on budget by year end.
Federal & State Grant funds are lower than budgeted due to the timing of the expenditure of funds by local partners. Grant receipts
parallel the expenditure of funds because the NSP grant is administered on a reimbursement basis. We expect this line item to be
on budget by year end.
All Foundation Fund grants were approved by the Board in September 2015 and disbursed to recipients by the first week in
November 2015. Additionally the Corporation received donations (and consequently matching funds were allocated) for the
Foundation Fund that were not anticipated at the time the budget was prepared resulting in $10,500 in additional Foundation
Fund Grant expenditures.
Freight, Delivery, Postage and Storage as well as Publications, Subscriptions and Other Office Expenditures are over budget
due to the timing of certain expenditures. We expect that these line items will be on target by year end.
Federal & State Grant expenditures are lower than budgeted due to the timing of expenditures by the Corporation's local partners.
We expect this line item to be on budget by year end.
Tab 1
BOARD MEETING
Held at the offices of
2200 E. Martin Luther King Jr. Blvd.
Austin, TX 78702
February 11, 2016 at 10:30 am
Summary of Minutes
Call to Order, Roll Call
Certification of Quorum
The Board Meeting of the Texas State Affordable Housing Corporation (the
“Corporation”) was called to order by Bob Jones, Chair, at 10:32am, on February 11,
2016, at the offices of Texas State Affordable Housing Corporation, 2200 E. Martin Luther
King Jr. Blvd, Austin, TX 78702. Roll Call certified that a quorum was present.
Members Present
Bob Jones, Chair
Gerry Evenwel, Member
Jerry Romero, Member
Members Absent
Bill Dietz, Vice Chair
Alex Meade, Member
Staff Present
Betsy Aldrich, Senior Accountant
Liz Bayless, Executive Vice President
Katie Claflin, Senior Development Coordinator
David Danenfelzer, Manager of Development Finance
Cynthia Gonzales, Office Manager and Assistant Corporate Secretary
Nick Lawrence, Controller
David Long, President
James Matias, Senior Multifamily Analyst
Celina Mizcles, Senior Multifamily Analyst
Laura Ross, Corporate Secretary
Melinda Smith, Chief Financial Officer
Janie Taylor, Manager of Communications & Development
Michael Wilt, External Relations Specialist
Guests
Bill Gehrig, Greenberg Traurig LLP
Tim Nelson, First Southwest Company
Eric Pike, First Southwest Company
Public Comment
No public comment was given.
President’s Report
Mr. Long provided a brief overview of the reports included in the board packet. He noted that the
quarterly Multifamily Compliance and Resident Services reports and Annual Marketing
Communications Activity report were included under Tab C and Tab D, respectively.
Mr. Long made the board aware that Ms. Ellinor and Ms. Davila were currently attending the
San Antonio Board of Realtors Rally in San Antonio which provided a great opportunity to
advertise the Corporation’s programs. He also thanked Ms. Bayless, Ms. Davila and Mr.
Almquist for taking on extra work in Ms. Ellinor’s absence during her maternity leave, as well as
the search to fill the Homeownership Finance Manager position.
Mr. Long provided the board with an update on Rollins Martin Apartments. He stated that
Rollins Martin had recently undergone a compliance monitoring visit from the Texas Department
of Housing and Community Affairs (TDHCA), as was required of tax credit properties. Mr.
Long complemented Ms. Mizcles and Mr. Matias on their hard work in getting files and policies
in order at Rollins Martin. He specifically thanked Ms. Mizcles for her oversight and leadership
in preparation for the monitoring visit.
Mr. Long noted that two units had recently become vacant and were undergoing extensive
renovations including installing new flooring, kitchen and bathroom cabinets and countertops,
light fixtures and new paint throughout the units. He thanked Mr. Matias, Ms. Mizcles and Mr.
Sepeda for their hard work in conducting those renovations.
Mr. Long then provided the board with an update on the 2015 Texas Foundations Fund awards.
At the September meeting, the Board approved awards to 16 nonprofit organizations ranging
from $15,000 to $50,000 and totaling $360,000; this was the largest annual funding awarded to
date. Mr. Long informed the board that over the past month, he had participated in seven check
presentations made to nonprofits located in Fort Worth, Collin County, Lubbock, Corpus Christi,
Houston, Victoria and the Rio Grande Valley. Mr. Long thanked Advisory Council members Mr.
Bill Albers, Mr. Bruce Fielder and Mr. Julian Alvarez for participating in the check presentations
that took place in their regions. He also thanked Mr. Jones for participating in the check
presentation in Corpus Christi. Mr. Long commented on how the check presentations provided
the opportunity to meet and talk with the people we serve and honor the organizations we partner
with who use our funding to serve the citizens of Texas. He recognized Ms. Taylor, Mr. Wilt and
Ms. Claflin for all of the work and preparation that went into the check presentations, including
coordination with local and state officials as well as the media. He noted that a state or local
official participated at each of the check presentations. In multiple cases there was more than one
who participated. He added that press releases had been issued for each check presentation and
noted that media was present at several of the events.
Mr. Long provided a summary of the Single Family Homeownership Programs for 2015; the
Corporation funded over $232 million in mortgage loans, assisting 1,838 families to purchase a
home through our homebuyer programs and provided over $9.6 million in down payment
2
assistance grants. In addition, 370 home buyers had obtained federal tax credits through the
Mortgage Credit Certificate (MCC) Program.
Mr. Long also recognized the top individual loan officers and mortgage companies for 2015. The
top performing loan officer was Kim Lewis with Mortgage Financial Services based in
Dallas/Fort Worth who serves clients across the entire state. Mr. Long noted that Ms. Lewis has
been the top producing loan officer for the past seven years. Ms. Gabriella Rodriguez with First
Community Mortgage was second; she is based in El Paso and serves clients in El Paso along
with Dallas, Houston, Midland-Odessa, Central and South Texas. Ms. Ginger Smith with NTFN,
Inc. dba Premier Nationwide Lending was third; she is also based in the Dallas/Fort Worth and
serves clients across the state.
The four top performing mortgage companies were Cornerstone Home Lending, with over $23.4
million in loans; Prime Lending, with over $22.8 million in loans; Everett Financial dba Supreme
Lending, with over $21.7 million in loans; and Premier Nationwide Lending, with over $20.2
million in loans. Mr. Long thanked them for their efforts to make our programs available to as
many people in the State of Texas.
Mr. Long informed the board that the marketing staff had created a new “Ten Steps to
Homeownership” checklist and a copy had been provided to the board members. He noted that
the checklist was for consumers, lenders and REALTORS® and provided information on the
home buying process.
Mr. Long provided the board with an update on the grants the Corporation had received since the
December board meeting. The Texas Financial Education Endowment had awarded the
Corporation $32,000 and JP Morgan Chase had awarded the Corporation $20,000; both awards
were in support of the Texas Statewide Homebuyer Education Program (TSHEP). Trademark
Media awarded the Corporation a $1,000 grant in support of the Texas Financial Toolbox and the
Texas Mortgage Calculator. Mr. Long noted that these grants continued our initiatives to ensure
that borrowers had access to homebuyer education and counseling services when they purchased
a home.
Mr. Long provided an update on the Single Family Rental Program noting for the board that the
Corporation had recently purchased a home in Manor to replace the home that was sold in
Pflugerville. He thanked Mr. Matias and Ms. Mizcles for the efficiency in ensuring the home was
ready to lease soon after it was acquired.
Mr. Long informed the board of meetings and conferences attended by the staff over the last
month. In addition to the check presentations for the Texas Foundations Fund awards, Mr. Long
and Mr. Almquist had attended the National Council of State Housing Agencies (NCSHA)
conference in Washington, DC. He noted that Mr. Romero had also attended the conference. Mr.
Long and Mr. Wilt had attended the Texas Interagency Council on Homelessness meeting. Mr.
Danenfelzer and Ms. Claflin had given presentations at TDHCA’s Housing and Services
Partnership Academy. Mr. Danenfelzer had spoken about the Affordable Communities of Texas
(ACT) Program and Ms. Claflin had spoken about the Texas Foundations Fund. The
Corporation’s loan committee, which included Mr. Romero as the board representative, had met
the previously day to review the Corporation’s loan portfolio. Ms. Ellinor and Ms. Davila were
attending the San Antonio Board of Realtors Rally today in San Antonio. The homeownership
3
staff continued to conduct webinars for lenders, realtors and housing counselors. They also
continued to conduct the “Overcoming the Down Payment Hurdle” class in association with the
Texas Board of Realtors.
Mr. Romero asked how the Texas Interagency Council on Homelessness (TICH) was addressing
the issue of veteran homelessness. Mr. Romero and Mr. Jones requested an update at the next
board meeting about initiatives being discussed. Mr. Romero also inquired about the
membership of the TICH; Mr. Long stated the membership consisted of representatives from
several state agencies, and also included several affiliate members. Discussion followed about
the programs the Corporation currently administered that served veterans including the ACTVET program where homes were either fully donated or sold at a discount to disabled veterans.
Mr. Jones referenced the marketing activities report in the board packet and complemented the
marketing staff on all of the work and activities they performed in 2015.
Tab 1
Presentation, Discussion and Possible Approval of Minutes of the Board
Meeting held on December 10, 2015.
Mr. Romero made a motion to approve the minutes with the recommended change from Mr.
Evenwel. Mr. Jones seconded the motion. He called for public comment and none was given. A
vote was taken on the motion and it passed unanimously.
Tab 2
Presentation, Discussion and Possible Approval of a Resolution Approving
TSAHC’s Submission of an Application to Woodforest National Bank for an
Equity Equivalent Investment in the Amount of Five Hundred Thousand
Dollars ($500,000) to be used for Qualified Purposes of the Texas Housing
Impact Fund.
Ms. Taylor began by explaining that staff was asking the board’s approval of a resolution that
would authorize staff to submit an application to Woodforest National Bank for an equity
equivalent investment (EQ2) in the amount of $500,000 in support of the Texas Housing Impact
Fund.
Ms. Taylor stated that Woodforest National Bank had been in business for 35 years and was
headquartered in the Woodlands, TX. It had 740 branches in 17 states across the southeast, east
coast and Midwest regions of the country. Their mission as a community partner was to promote
economic growth through community development lending and revitalization. They were
committed to the provision of affordable housing and homeownership opportunities by investing
and partnering with organizations like TSAHC.
The Corporation had requested an EQ2 from Woodforest National Bank to support the Texas
Housing Impact Fund program. If awarded an EQ2, the Corporation would use the funds to
support the development of affordable housing in Woodforest National Bank’s service areas
which included most areas of the state.
Ms. Taylor thanked Ms. Claflin and Ms. Smith for the time and effort they spent gathering the
information for the application. She noted that staff started working with Woodforest National
Bank on the EQ2 application in September 2015. They had held many conference calls, meetings
4
and exchanged many emails with Woodforest regarding the investment, which illustrated how
long a process securing this type of investment could be. Staff was excited to be officially invited
by Woodforest to apply for an EQ2 investment. The resolution before the board today would
authorize staff to submit the application to Woodforest for the EQ2 investment. This approval
was a requirement of Woodforest National Bank in their application process.
Mr. Jones asked about the difference between an EQ2 and a line of credit. Ms. Taylor explained
that an EQ2 was not a traditional loan. It had a different structure and different parameters within
the agreement where Woodforest would receive credit under the Community Reinvestment Act
(CRA). Generally speaking, they had lower interest rates. Ms. Taylor reminded the board that the
Corporation already had EQ2 awards with Wells Fargo and Texas Community Bank.
Mr. Romero made a motion to approve the resolution approving TSAHC’s submission of an
application to Woodforest National Bank for an Equity Equivalent Investment in the amount of
five hundred thousand dollars ($500,000) to be used for qualified purposes of the Texas Housing
Impact Fund. Mr. Evenwel seconded the motion. Mr. Jones asked for public comment and none
was given. A vote was taken and the motion passed unanimously.
Tab 3
Presentation, and Discussion of, and Possible Approval to Publish for Public
Comment, the Texas Foundations Fund Draft 2016 Guidelines.
Ms. Claflin explained that staff was asking for the board’s approval to publish the 2016 Texas
Foundations Fund (TFF) Draft Guidelines for public comment. She noted that if approved, the
public comment period would be open from February 12th until March 11th. Staff would then
review the public comment received and bring the final Guidelines back to the board for final
approval at the April board meeting.
Ms. Claflin recalled that at the December board meeting staff had provided the board with an
update on plans for the 2016 Texas Foundations Fund program, which included modifying the
structure of TFF from a traditional competitive grant structure to a matching grant structure. The
Guidelines being presented to the board today reflected that change. She explained that under
this structure, the Corporation would select partners every two years and all selected partners
would be eligible for matching grants to supplement public and private funds they raised to
support their programs. She noted that the programs eligible under TFF would remain the critical
repair of single family homes and supportive housing services helping families and individuals
avoid homelessness or unnecessary institutionalization.
Ms. Claflin went over the threshold criteria for eligibility as was listed in the Guidelines. Eligible
organizations must be 501(c)(3) nonprofits. This was a change from previous years when rural
governmental entities could also qualify for funding. She explained that the Corporation had not
garnered a lot of interest or applications from rural governments over the years. Because of this,
staff was proposing that only nonprofits be eligible for the program.
The Guidelines also proposed that organizations have three years of experience operating
programs in Texas and two years of experience with the programs for which the matching grant
was being requested. For fundraising, the Guidelines stipulated that a letter of reference be
submitted from a funder supporting the program for which the matching grant was being
requested. Information regarding their government grant performance was required in order to
5
certify that they had not defaulted on and been required to repay any government grants within
the last two years. Ms. Claflin noted that the organizations were not required to have experience
with government grants, but if they did then staff was requiring that they certify there had not
been any recent negative performance issues.
As to financial requirements, the organizations would be required to submit a financial review in
lieu of an audit similar to the guidelines in prior rounds.
Requirements for households served were similar to previous years in that they must all be at
50% or below the median family income. In addition, it was now being required that the
matching grant serve households with a disability or households in a rural community or both.
Mr. Romero made a motion to approve the 2016 Texas Foundations Fund Draft Guidelines for
publication for public comment. Mr. Evenwel seconded the motion. Mr. Jones asked for public
comment and none was given. A vote was taken and the motion passed unanimously.
Tab 4
Presentation, Discussion and Possible Approval of the Texas State
Affordable Housing Corporation’s 2016 Annual Action Plan.
Mr. Wilt presented the Annual Action Plan that was prepared in accordance with Texas
Government Code Section 2306.566 which required the Corporation to develop a plan to address
the state’s housing needs. Mr. Wilt explained that the Action Plan contained a comprehensive
overview of the Corporation’s programs and the Corporation’s 2016 implementation plan for
each program.
Mr. Wilt stated that the draft Action Plan was approved by the board in December, it had been
posted on the Corporation’s website and in the Texas Register. The public comment period for
the Action Plan had lasted from December 14th until January 22nd. On January 14th, the
Corporation participated in a joint public hearing with TDHCA. No public comment was given
at the hearing and no other comment was received during the public comment period.
Mr. Wilt stated that staff was asking for the board’s final approval of the 2016 Annual Action
Plan. Mr. Romero asked if there were any changes to what was approved the previous year. Mr.
Wilt replied that the statistics for people served by each of the programs had been updated, the
implementation goals for 2016 had been adjusted, and any new changes to the programs had
been included. Mr. Jones asked if financial goals had increased or decreased and Mr. Wilt
explained that financial goals were not included in the report. If approved by the board today, the
2016 Annual Action Plan would be included in the State Low Income Housing Plan (SLIHP)
that was prepared by the Texas Department of Housing and Community Affairs
(TDHCA).TDHCA’s board would be voting on the SLIHP at their meeting this month and if
approved, it would be submitted to the Governor, Lieutenant Governor and Speaker of the
House. He noted that TDHCA’s board did not have the authority to make changes to the
Corporation’s portion of the SLIHP.
Mr. Evenwel made a motion to approve the Texas State Affordable Housing Corporation’s 2016
Annual Action Plan. Mr. Romero seconded the motion. Mr. Jones asked for public comment and
none was given. A vote was taken and the motion passed unanimously.
6
Tab 5
Presentation, Discussion and Possible Approval of the Guidelines, Scoring
Criteria and Targeted Housing Needs for the Allocation of Qualified
Residential Rental Project Tax Exempt Bond Funds under the Multifamily
Housing Private Activity Bond Program Request for Proposals and the
501(c)(3) Bond Program Policies for Calendar Year 2016.
Mr. Danenfelzer informed the board that in accordance with statute, staff reviewed and updated
the RFP and 501(c)(3) bond policies on an annual basis. Staff considered different sources of
information when determining how to update the policies, and this year they were recommending
several updates to make the policies more consistent with other statewide programs such as the
Housing Tax Credit Program which was often paired with the Private Activity Bond (PAB)
program.
Mr. Danenfelzer noted that during the public comment period, staff had received public
comment from Mr. Jason Arechiga with the NRP Group regarding the requirement for
replacement reserves. The policies and RFP had originally required $300 per unit per year, but
his comment pointed out that TDHCA had lowered theirs to $250. He also commented on the
minimum debt coverage ratio (DCR) requirement. Our policies had originally required a 1.20
DCR; Mr. Arechiga noted that TDHCA had lowered their DCR to 1.15. Mr. Danenfelzer
explained that the Corporation typically followed TDHCA’s underwriting standards for
consistency across our programs. As a result, these changes had been made to align our
standards.
Mr. Romero made a motion to approve the guidelines, scoring criteria and targeted housing
needs for the allocation of qualified residential rental project tax exempt bond funds under the
Multifamily Housing Private Activity Bond Program Request for Proposals and the 501(c)(3)
Bond Program Policies for calendar year 2016. Mr. Evenwel seconded the motion. Mr. Jones
asked for public comment and none was given. A vote was taken and the motion passed
unanimously.
Tab 6
Presentation, Discussion and Possible Approval of Texas State Affordable
Housing Corporation’s Bank Depository Agreement.
Ms. Smith reported that the Corporation’s five year contract with Frost Bank for depository
services was expiring.. In September, the Corporation had issued a Request for Proposals (RFP)
for depository services and had received two responses to the RFP. Staff had received several
inquiries about the RFP from other financial institutions, however only Frost Bank and Wells
Fargo had submitted responses.
The two proposals were reviewed by accounting staff and found to be remarkably similar in what
was being offered and the fees that were being charged. Frost Bank’s response included fees that
were slightly lower than Wells Fargo. As a result, staff was recommending the Corporation
continue working with Frost Bank.
Mr. Jones asked if the Corporation had always used Frost Bank for these services; Ms. Smith
and Mr. Long replied that the Corporation had used the depository services of other banks in the
past, including Bank of America and Wells Fargo. Ms. Smith explained that the bank selected
would hold the Corporation’s operating account including our reserve and custodial accounts;
7
however the Corporation would also continue to work with other financial institutions regarding
investments.
Mr. Evenwel asked about the financial benefits of staying with Frost Bank; Ms. Smith noted that
Frost Bank’s fees were lower and the rates offered on our depository and certificates of deposit
were better. Ms. Smith added that staff would continue to work with the same staff at Frost
Bank.
Mr. Evenwel made a motion to approve the Texas State Affordable Housing Corporation’s Bank
Depository Agreement with Frost Bank. Mr. Jones seconded the motion. He asked for public
comment and none was given. A vote was taken and the motion passed unanimously.
Open Meeting
Mr. Jones thanked Ms. King for recording the meeting. He also thanked staff for their hard work.
Mr. Long noted that the March board meeting was tentatively set for Thursday, March 10, 2016.
Adjournment
Mr. Jones adjourned the meeting at 11:27am.
Respectfully submitted by________________________________________________
Laura Ross, Corporate Secretary
8
Tab 2
#373260883v1
MINUTES AND CERTIFICATION
THE STATE OF TEXAS
TEXAS STATE AFFORDABLE
HOUSING CORPORATION
§
§
§
§
I, the undersigned officer of the Texas State Affordable Housing Corporation (the
“Corporation”), do hereby certify as follows:
1.
The Board of Directors of the Corporation (the “Board”) convened on the 24th
day of March, 2016, at the designated meeting place in Austin, Texas, and the roll was called of
the duly constituted members of the Board, who are as follows:
2.
Name
Office
Robert Elliot Jones
William H. Dietz
Gerry Evenwel
Alejandro Meade
Jerry Romero
Chairperson
Vice Chairperson
Director
Director
Director
The officers of the Corporation (who are not Board members) are as follows:
Name
Office
David Long
Elizabeth Bayless
Melinda Smith
Laura Ross
Cynthia Gonzales
President
Executive Vice President
Chief Financial Officer and Treasurer
Secretary
Assistant Secretary
All said Board members were present except
officers of the Corporation were present at the meeting.
, thus constituting a quorum. All of the
Whereupon, among other business, the following written resolution (the “Resolution”) bearing
the following caption:
“RESOLUTION NO. 16-____
RESOLUTION RELATING TO THE SALE OF MORTGAGEBACKED CERTIFICATES RELATING TO THE TEXAS
STATE AFFORDABLE HOUSING CORPORATION SINGLE
FAMILY MORTGAGE REVENUE BONDS (FIRE FIGHTER
AND LAW ENFORCEMENT OR SECURITY OFFICER
HOME LOAN PROGRAM), SERIES 2006B, AND THE
REDEMPTION IN WHOLE OF SUCH BONDS, AND ALL
MATTERS RELATED THERETO”
was duly introduced for the consideration of said Board and said caption was read in full. It was
then duly moved and seconded that the Resolution be adopted; and, after due discussion and
request for comments, said motion carrying with it the adoption of the Resolution, prevailed and
carried by the following vote:
AYES
NOES
ABSTENTIONS
2.
That a true, full and correct copy of the Resolution adopted at the meeting
described in the above and foregoing paragraph is attached to this certificate; that the Resolution
has been duly recorded in the Board’s minutes of the meeting; that the persons named above are
the duly chosen, qualified and acting officers and members of the Board as indicated therein; that
each of the officers and members of the Board was duly and sufficiently notified officially and
personally, in advance, of the time, place and purpose of the aforesaid meeting, and that the
Resolution would be introduced and considered for adoption at said meeting, and each of said
officers and members consented, in advance, to the holding of said meeting for such purpose.
EXECUTED this 24th day of March, 2016.
Laura Ross, Secretary
2
RESOLUTION NO. 16-___
FAMILY MORTGAGE REVENUE BONDS (FIRE FIGHTER
AND LAW ENFORCEMENT OR SECURITY OFFICER HOME
LOAN PROGRAM), SERIES 2006B, AND THE REDEMPTION
IN WHOLE OF SUCH BONDS, AND ALL MATTERS
RELATED THERETO
WHEREAS, the Texas State Affordable Housing Corporation (the “Corporation”)
has been duly created and organized pursuant to and in accordance with the provisions of the
Texas Non- Profit Corporation Act, Article 1396-1.01 et seq. Vernon’s Annotated Texas Civil
Statutes, as amended and under the authority of Subchapter Y of Chapter 2306, Texas
Government Code, as amended (the “Act”), the Issuer is authorized to establish programs
including bond-financed programs, to provide individuals and families of low income, as defined
in the Act, with adequate, safe and sanitary housing; and
WHEREAS, the Corporation has previously issued its “Texas State Affordable Housing
Corporation Single Family Mortgage Revenue Bonds (Fire Fighter and Law Enforcement or
Security Officer Home Loan Program), Series 2006B” (the “Bonds”), in the total initial
principal amount of $23,640,000, on June 15, 2006, pursuant to a Trust Indenture dated as of
June 1, 2006, as supplemented by a First Supplement to Trust Indenture dated as of July1, 2007
(collectively, the “Indenture”), each between the Corporation and Wells Fargo Bank, National
Association, as trustee (the “Trustee”); and
WHEREAS, the proceeds of the Bonds were used to purchase mortgage-backed
securities (collectively, the “Certificates”) backed by mortgage loans made to persons or families
for the purchase of qualifying single family residences in the State of Texas; and
WHEREAS, the Corporation has determined that it is in the best interest of the
Corporation to analyze the sale of the Certificates and the redemption in whole of the
outstanding Bonds, in accordance with the applicable optional redemption provisions of the
Indenture, in order to release surplus revenues and/or assets to the Corporation after provision for
the related redemption and the payment of transaction costs; and
WHEREAS, the Board of Directors of the Corporation has determined to delegate to the
President and the Executive Vice President the authority to determine if the sale of the
Certificates at then applicable market prices is in the best interest of the Corporation to proceed
with the transaction.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
TEXAS STATE AFFORDABLE HOUSING CORPORATION:
Section 1.
Authorization to Approve Certificate Sale and Bond Redemption. That
the President and Executive Vice President are authorized to evaluate the sale of the Certificates
and the corresponding redemption of the Bonds and release of surplus revenues, in consultation
with the Corporation’s financial consultants and legal counsel, and that the President and the
Executive Vice President each have the full power and authority to determine if the sale of the
Certificates at then applicable market prices is in the best interest of the Corporation.
Section 2.
Execution and Delivery of Documents. That if, pursuant to Section 1, it is
determined that a sale of the Certificates shall proceed, the President or Executive Vice President
are each authorized and directed for and on behalf of the Corporation to execute any sale
agreement with respect to the sale of the Certificates, to provide instructions to the Trustee, and
to enter into any other documents that may be necessary or desirable to consummate the sale of
the Certificates and the redemption of the Bonds.
Section 3.
Redemption of Bonds. That upon approval of the sale of the Certificates
by the President or Executive Vice President, the Bonds shall be redeemed in whole on the date
or dates specified in the instructions of the Issuer to the Trustee, or any other documentation, at
the applicable redemption prices set forth in the Indenture.
Section 4.
Conflicting Prior Actions. That all orders, resolutions, or any actions or
parts thereof of the Board of Directors of the Corporation in conflict herewith are hereby
expressly repealed to the extent of any such conflict.
Section 5.
Severability. That if any section, paragraph, clause or provision of this
Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, clause, or provision shall not affect any of the
remaining provisions of this Resolution.
Section 6.
Effective Date. That this Resolution shall be in full force and effect from
and upon its adoption.
[Remainder of Page Intentionally Left Blank]
2
APPROVED AND EFFECTIVE this 24th day of March, 2016.
TEXAS STATE AFFORDABLE HOUSING
CORPORATION
Chairperson
ATTEST:
S-1
Tab 3
#373260884v1
THE STATE OF TEXAS
HOUSING CORPORATION
§
§
§
§
1.
The Board of Directors of the Corporation (the “Board”) convened on the 24th
day of March, 2016, at the designated meeting place in Austin, Texas, and the roll was called of
the duly constituted members of the Board, who are as follows:
2.
Name
Office
Robert Elliot Jones
William H. Dietz
Gerry Evenwel
Alejandro Meade
Jerry Romero
Chairperson
Vice Chairperson
Director
Director
Director
Name
Office
David Long
Elizabeth Bayless
Melinda Smith
Laura Ross
Cynthia Gonzales
President
Secretary
Assistant Secretary
officers of the Corporation were present at the meeting.
, thus constituting a quorum. All of the
FAMILY MORTGAGE REVENUE BONDS, SERIES 2006C,
AND THE REDEMPTION IN WHOLE OF SUCH BONDS,
AND ALL MATTERS RELATED THERETO”
AYES
NOES
ABSTENTIONS
2.
2
FAMILY MORTGAGE REVENUE BONDS, SERIES 2006C,
AND THE REDEMPTION IN WHOLE OF SUCH BONDS,
AND ALL MATTERS RELATED THERETO
has been duly created and organized pursuant to and in accordance with the provisions of the
Texas Non- Profit Corporation Act, Article 1396-1.01 et seq. Vernon’s Annotated Texas Civil
Statutes, as amended and under the authority of Subchapter Y of Chapter 2306, Texas
Government Code, as amended (the “Act”), the Issuer is authorized to establish programs
including bond-financed programs, to provide individuals and families of low income, as defined
in the Act, with adequate, safe and sanitary housing; and
WHEREAS, the Corporation has previously issued its “Texas State Affordable Housing
Corporation Single Family Mortgage Revenue Bonds, Series 2006C” (the “Bonds”), in the total
initial principal amount of $23,650,000, on October 17, 2006, pursuant to a Trust Indenture
dated as of October 1, 2006 (the “Indenture”), between the Corporation and Wells Fargo Bank,
National Association, as trustee (the “Trustee”); and
WHEREAS, the proceeds of the Bonds were used to purchase mortgage-backed
securities (collectively, the “Certificates”) backed by mortgage loans made to persons or families
for the purchase of qualifying single family residences in the State of Texas; and
WHEREAS, the Corporation has determined that it is in the best interest of the
Corporation to analyze the sale of the Certificates and the redemption in whole of the
outstanding Bonds, in accordance with the applicable optional redemption provisions of the
Indenture, in order to release surplus revenues and/or assets to the Corporation after provision for
the related redemption and the payment of transaction costs; and
WHEREAS, the Board of Directors of the Corporation has determined to delegate to the
President and the Executive Vice President the authority to determine if the sale of the
Certificates at then applicable market prices is in the best interest of the Corporation to proceed
with the transaction.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
TEXAS STATE AFFORDABLE HOUSING CORPORATION:
Section 1.
Authorization to Approve Certificate Sale and Bond Redemption. That
the President and Executive Vice President are authorized to evaluate the sale of the Certificates
and the corresponding redemption of the Bonds and release of surplus revenues, in consultation
with the Corporation’s financial consultants and legal counsel, and that the President and the
Executive Vice President each have the full power and authority to determine if the sale of the
Certificates at then applicable market prices is in the best interest of the Corporation.
Section 2.
Execution and Delivery of Documents. That if, pursuant to Section 1, it is
determined that a sale of the Certificates shall proceed, the President or Executive Vice President
are each authorized and directed for and on behalf of the Corporation to execute any sale
agreement with respect to the sale of the Certificates, to provide instructions to the Trustee, and
to enter into any other documents that may be necessary or desirable to consummate the sale of
the Certificates and the redemption of the Bonds.
Section 3.
Redemption of Bonds. That upon approval of the sale of the Certificates
by the President or Executive Vice President, the Bonds shall be redeemed in whole on the date
or dates specified in the instructions of the Issuer to the Trustee, or any other documentation, at
the applicable redemption prices set forth in the Indenture.
Section 4.
Conflicting Prior Actions. That all orders, resolutions, or any actions or
parts thereof of the Board of Directors of the Corporation in conflict herewith are hereby
expressly repealed to the extent of any such conflict.
Section 5.
Severability. That if any section, paragraph, clause or provision of this
Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, clause, or provision shall not affect any of the
remaining provisions of this Resolution.
Section 6.
[Remainder of Page Intentionally Left Blank]
2
CORPORATION
Chairperson
ATTEST:
S-1
Tab 4
Develop
pment Fin
nance Pro
ograms
March 224, 2016
Agen
nda Item
Prese
entation and
d discussion
n of the stattus of the rredevelopmeent of the Corporation
C
s
ACT Land
L
Bank property in Plano, Texas.
Summ
mary
In De
ecember 2015 the Corp
poration issued a request for proposals (RFP) in order to
t
select a development partner to work with the Coorporation to create neew affordablle
housing on our ACT
A Land Ban
nk property located at 114th Street an
nd Ave G in Plano, Texas.
The RFP
R complie
ed with the Affordable
A
C
Communitie
es of Texas p
program guiidelines. Staff
receivved three applications from
f
potenttial partnerss, and after a careful revview process,
our project
p
team selected DM
MA Development Company, LLC.
DMA
A Developme
ent Companyy, LLC is partt of a group of companiees that perfo
orms housin
ng
development, co
onsulting an
nd propertyy managemeent function
ns. Led by its principaal,
he DMA group has been
n building a nd managin
ng affordable multifamily
Dianaa McIver, th
prope
erties for nearly 30 years. Their footprint in
ncludes prop
perties in m
more than 220
states, with 27 prrojects comp
pleted in Texxas since 2000.
Severral projects that DMA has worked on
o in recent years fit weell into the p
project modeel
that staff has be
een conside
ering. Examples includee La Vista d
de Guadalup
pe, a 22 un
nit
afford
dable rentaal communiity in down
ntown Austtin developed in partnership witth
Guad
dalupe Neighborhood Developmen
D
nt Corporation (GNDC)). The projeect financin
ng
includ
ded 9% housing tax credits, grants from the M
Meadows Fou
undation and permanen
nt
financing from Wells
W
Fargo.
The Corporation
C
also has wo
orked with DMA in the ppast. DMA w
was the consu
ultant on TH
HF
Gatew
way Northw
west apartm
ments, in Georgetown
G
n, Texas, a project fo
or which th
he
Corpo
oration issue
ed bonds in 2012.
The other
o
appliccants were Habitat for Humanity of South Co
ollin Countyy and Brookke
Comm
munity Deve
elopment in partnership with Bramaata Construcction.
Staff Recommen
ndation
No Board action is required at this timee. Staff will be working with DMA to produce a
detailed plan for development. Once a plan is avvailable, staaff will seekk the Boards
review and consideration.
Tab 5
2016 Texas Foundations Fund
Final Guidelines
April 2016
Texas Foundations Fund Overview
Through its Texas Foundations Fund program, the Texas State Affordable Housing Corporation (TSAHC)
partners with nonprofit organizations across Texas to support housing services that meet critical housing
needs of very low-income households in Texas.
Matching Grant Structure—New in 2016
For the 2016 funding round, the Texas Foundations Fund will provide matching grants to eligible public
and private funds raised by selected partners (“Partners”). Public and private funds must have been
received by Partners on or after January 1, 2016 and must be earmarked specifically for the program for
which a matching grant from the Texas Foundations Fund is requested.
The following are eligible for matching grants:
Individual donations
Foundation grants
Corporate grants or sponsorships
Government grants
In-kind donations of materials or professional services (volunteer labor does not qualify for
matching grants)
2016 Partner Application Process
Partners eligible for matching grants will be selected every two years through an online application
process. The online application will be available on TSAHC’s website at www.tsahc.org in mid-April
2016. Interested applicants should first complete an eligibility quiz to determine if they may qualify as a
Partner. Only organizations that pass the eligibility quiz will be instructed to complete the online
application.
Partner applications must be submitted online no later than 5:00 pm on Friday, June 3, 2016. All
applicants meeting certain threshold requirements will qualify as Partners and will be eligible for matching
grants.
After submitting an application, applicants may not contact members of TSAHC’s Board of Directors
regarding their application. Failure to comply will result in the disqualification of the application.
If an application contains deficiencies that require clarification or correction, TSAHC staff will contact the
applicant directly to request clarification or correction of such deficiencies. Failure to respond to follow
up requests for information will result in the disqualification of an application.
Partner Threshold Requirements
To qualify as a Partner eligible for a matching grant, applicants must meet the following threshold
requirements:
1. Organization Type: Applicant must be a nonprofit organization with a 501(c)(3) designation
from the Internal Revenue Service.
1
2. Organization Experience: Applicant must have at least three years of experience operating
housing programs in Texas.
3. Program Experience: Applicant must have at least two years of experience operating the
program for which a matching grant will be requested (see section below for additional
program eligibility information).
4. Fundraising Experience: Applicant must provide a letter of reference or support from a
funder who has supported the program for which a matching grant will be requested.
5. Government Grant Performance: Applicant must certify that it has not defaulted on or
been required to repay any federal, state or local government grants within the past two
years. Applicants do not need to have prior experience with government grants to be eligible
for a matching grant.
6. Financial Requirements: Applicant must be able to provide annual financial audits for its
two most recent fiscal years (TSAHC will accept financial reviews in lieu of audits from
organizations with an annual operating budget of $750,000 or less) and must be prepared to
submit its audits, as well as other financial documents, when requested.
7. Household Requirements: To ensure the Texas Foundations Fund reaches those who are
most in need, each applicant must utilize matching funds to serve only :
a. Households at or below 50% of the area median family income (very low income)1, and
b. Households with a household member with a disability, and/or households located in a
rural community2.
Eligible Programs
Programs that provide the following housing services are eligible for a matching grant from the Texas
Foundations Fund:
1. The rehabilitation and/or critical repair of single family homes3 to remedy unsafe living
conditions.
Critical repairs may also include accessibility modifications for homes with a household
member with a disability.
Homes receiving repairs must be owner-occupied.
TSAHC will support the critical repair of single family rental homes owned and operated by
the organization applying only if the repairs enhance accessibility for a renting household with
an individual with a disability4
1
While an applicant’s program may serve households above this income level with other funding sources, a
matching grant from the Texas Foundations Fund may only be used to serve households meeting this income
requirement. TSAHC uses the U.S. Department of Housing and Urban Development’s Section 8 income limits to
determine income eligibility for the Texas Foundations Fund program. To review the current income limits, visit:
www.huduser.org/portal/datasets/il.html
2 TSAHC defines “rural” as a county that is outside a metropolitan statistical area (MSA), or a city or community
that is: 1) outside the boundaries of an MSA; or 2) within the boundaries of an MSA, if it has a population of 25,000
or less and does not share a boundary with an urban area (population larger than 25,000 within an MSA).
3 Throughout this document, the term “single family home” means a residential property with an attached or
detached dwelling that consists of (i) a single unit on an individual lot, or (ii) a single unit in a condo project,
Planned Unit Development, or duplex, triplex or fourplex, or (iii) not more than four connected units, with each unit
intended as housing for one family. Dwellings that are not titled as real estate, such as RVs and houseboats, are not
eligible.
4 In exceptional circumstances, TSAHC may allow a Partner to perform critical repairs on a rental home owned by a
private landlord and occupied by a very low-income household. Partners must notify TSAHC in advance if they
wish to use a portion of their Texas Foundation Fund matching grant for this purpose. Additional information,
including documentation that the landlord is financially unable to perform the repairs, will be required.
2
Deleted: 500,000
All rehabilitation and/or critical repairs funded through the Texas Foundations Fund must be
provided free of charge.
2. The provision of supportive housing services that help individuals and families at risk of
homelessness or unnecessary institutionalization gain and maintain their housing stability.
Eligible supportive housing services include, but are not limited to:
the provision of alcohol and drug counseling,
adult education and/or job training,
mental health counseling, and/or
case management or services provided by a health care provider.
Resident Services, such as afterschool tutoring programs and computer labs, are not considered
supportive housing services and will not be eligible for a matching grant. All supportive housing
services funded through the Texas Foundations Fund must be provided free of charge to residents.
Organizations that solely provide supportive services are not eligible for a matching grant. TSAHC
will only consider organizations that own and operate housing with supportive services made
available to the residents as a result of their occupancy.
2016 Funding Availability and Timeline
TSAHC provides the matching grants available through the Texas Foundations Fund by blending private
donations with earned revenue from its affordable housing programs. TSAHC’s Board of Directors
approves the funding available each year under the Texas Foundations Fund. While the total funding
available for 2016 has not yet been determined, it is anticipated that at least $300,000 will be available this
year. The funding available to each Partner will depend both on the total funding available as determined
by TSAHC’s Board of Directors and the number of Partners selected (estimated range $10,000-$30,000
per year, per Partner).
Please note that donors to the Texas Foundations Fund have the ability to request their funds be used
within a specific city or region; as a result,depending on Partners’ service area(s), the maximum amount of
funding available to each Partner may vary.
It is anticipated that Partners will be announced and matching grants will become available in September
2016. At that time, each Partner will have six months to access its matching grant. Any funds not accessed
during the initial six month period will be combined into a statewide pool and made available to other
Partners on a first-come, first-awarded basis until all funds are depleted. TSAHC reserves the right to limit
the total amount of funding available to each Partner from the statewide pool.
All previous Texas Foundations Fund awardees are eligible to apply to be selected as a Partner for the
2016 funding round, as long as they meet the Partner threshold requirements listed above and perfomed
according to the grant agreement of their most recent funding award. TSAHC has eliminated the previous
requirement that selected partners are not eligible to receive funding more than twice in a three year
period.
Partner Term and Disbursement of Grants
Partners will be selected for a two-year term (“Partner Term”), with grant funding made available each
year. To access matching grants, Partners must submit a funding request form provided by TSAHC that
documents proof of public or private funds and proposed use of the matching grant. A Partner may submit
up to three funding requests during the initial six month period to access the full amount of its matching
grant.
3
A Partner must spend 100% of its matching grant and submit a brief summary documenting the use of the
matching grant by the end of the first year of the Partner Term before accessing matching funds the
following year.
Partner Agreement
Partners will be required to execute a partner agreement that outlines:
a description of the program for which the matching grant will be used,
eligible expenditures5,
the process to request matching grants,
reporting requirements, and
TSAHC’s right to inspect properties or service records and to review financial documents.
Failure to adhere to the terms of the partner agreement may result in the delay or cancelation of
matching grants, termination of the partner agreement, or request for repayment of all or part of
the matching grants disbursed.
Questions
Questions should be submitted in writing to Katie Howard Claflin by email at [email protected].
Applicants are highly encouraged to review the Texas Foundations Fund’s Question and Answer section of
TSAHC’s website at www.tsahc.org for pertinent application information.
5
Partners must use 100% of their matching grant for direct costs to provide the program for which the matching
grant is requested. These costs may include, but are not limited to, contractor fees, materials, salaries for staff
performing critical repair work, salaries for staff providing supportive housing services, salaries for staff directly
coordinating and supporting the program, travel expenses for staff directly coordinating and supporting the program,
and building permits and inspection fees for homes to be repaired. The partner agreement will include a full list of
expenses eligiblefor a matching grant.
4
Tab 6
#373260316v1
THE STATE OF TEXAS
HOUSING CORPORATION
§
§
§
§
1.
The Board of Directors of the Corporation (the “Board”) convened on March 24,
2016, at the designated meeting place in Austin, Texas, and the roll was called of the duly
constituted members of the Board, who are as follows:
2.
Name
Office
Robert Elliot Jones
William H. Dietz
Gerry Evenwel
Alejandro Meade
Jerry Romero
Chairperson
Vice Chairperson
Director
Director
Director
Name
Office
David Long
Elizabeth Bayless
Melinda Smith
Laura Ross
Cynthia Gonzales
President
Secretary
Assistant Secretary
, thus constituting a quorum.
All of the officers of the Corporation were present at the meeting.
RESOLUTION APPROVING POLICIES AND PROCEDURES
OF THE TEXAS STATE AFFORDABLE HOUSING
CORPORATION RELATING TO ITS COMPLIANCE WITH
FEDERAL TAX RULES APPLICABLE TO TAX-EXEMPT
BONDS ISSUED BY THE CORPORATION”
”
AYES
NOES
ABSTENTIONS
2.
2
RESOLUTION APPROVING POLICIES AND PROCEDURES
OF THE TEXAS STATE AFFORDABLE HOUSING
CORPORATION RELATING TO ITS COMPLIANCE WITH
FEDERAL TAX RULES APPLICABLE TO TAX-EXEMPT
BONDS ISSUED BY THE CORPORATION
WHEREAS, the Texas State Affordable Housing Corporation (the “Corporation”) has
been duly created and organized pursuant to and in accordance with the provisions of the Texas
Non-Profit Corporation Act, Article 1396-1.01 et seq. Vernon's Annotated Texas Civil Statutes,
as amended and under the authority of Subchapter Y of Chapter 2306, Texas Government Code,
as amended (the “Act”); and
WHEREAS, there has been presented to the Board the proposed form of Tax Compliance
Policies and Procedures attached hereto as Exhibit A and which comprise a part of this
Resolution; and
WHEREAS, Tax Compliance Policies and Procedures are intended to consolidate and
update the Corporation’s existing policies and procedures regarding its compliance with taxexempt bond rules and regulations covering bonds previously issued, and to be issued, by the
Corporation, and to include policies and procedures in the event the Corporation, as a 501(c)(3)
organization, were to be the beneficiary of an issue of qualified 501(c)(3) bonds; and
WHEREAS, after due consideration, the Board has determined to approve the Policies
and Procedures in the form attached as Exhibit A, with any such changes as shall be approved by
the President and reviewed by Corporation counsel, and to take all actions as may be necessary
to implement the Policies and Procedures immediately.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Texas State
Affordable Housing Corporation:
Section 1.
Approval, of the Tax Compliance Policies and Procedure. That the Tax
Compliance Policies and Procedures in the form attached hereto as Exhibit A is hereby approved
for immediate implementation, with any changes as shall be approved by the President and
reviewed by Corporation counsel.
Section 2.
Execution and Delivery of Other Documents. That the President and
Executive Vice President of the Corporation are each hereby authorized to consent to, accept,
execute and attest such other certificates, documents or other items as are necessary to carry out
or assist in carrying out the purposes of this Resolution.
Section 3.
Ratification of Prior Actions. That any prior action taken by or on behalf
of the Corporation, either by the Board or the officers or staff of the Corporation, with respect to
the Tax Compliance Policies and Procedures is hereby authorized, ratified, confirmed and
approved.
1
Section 4.
Conflicting Prior Actions. That all orders, resolutions or any actions or
parts thereof of the Board of Directors of the Issuer in conflict herewith are hereby expressly
repealed to the extent of any such conflict.
Section 5.
CORPORATION
Robert Elliot Jones, Chairperson
ATTEST:
2
EXHIBIT A
FORM OF TAX COMPLIANCE POLICIES AND PROCEDURES
A-1
TAX COMPLIANCE POLICIES AND PROCEDURES
I.
FOR SINGLE FAMILY MORTGAGE REVENUE BONDS AND MULTIFAMILY
MORTGAGE REVENUE BONDS ISSUED BY TSAHC IN ITS CAPACITY AS A
GOVERNMENTAL ISSUER
Texas State Affordable Housing Corporation (the “Corporation”) hereby adopts, as of March 24,
2016, the following policies and procedures with respect to issues of tax-exempt Single Family Mortgage
Revenue Bonds (“Single Family Bonds”) and tax-exempt Multifamily Mortgage Revenue Bonds
(“Multifamily Bonds,” and collectively with Single Family Bonds, the “Bonds”) issued by the
Corporation, in order to ensure that all applicable ongoing (“post-issuance”) requirements of federal
income tax law are met that are needed to preserve the tax-exempt status of the Bonds.
The Corporation reserves the right to use its discretion as necessary and appropriate to make
exceptions or request additional provisions as it may determine. The Corporation also reserves the right
to change these policies and procedures from time to time, without notice to any other person.
General
With regard to Single Family Bonds, the Corporation will work with the mortgage loan servicer
or servicer, and the trustee for the Bonds, to ensure that all tax compliance matters are covered in the
documents at the time of issuance of the Bonds.
With regard to Multifamily Bonds, the Corporation expects to act exclusively as a conduit issuer
of bonds for loans to conduit borrowers for the financing of multifamily residential rental developments,
under either Section 142(d) or Section 145 of the Code. As a result, the conduit borrower or borrower for
each bond issue (collectively, the “Borrower”) will bear primary responsibility for all ongoing tax
compliance matters relating to the Bonds, in accordance with the tax certificate(s) and/or agreement
relating to such issue of Bonds (collectively, the “Tax Certificate”),
The Corporation also expects to use a trustee (the “Trustee”) on its Bond issues, who will be
assigned certain document retention requirements in compliance with the Corporation’s document
retention policy. The Corporation retains the right to inquire of either the Borrower or the Trustee for any
documentation regarding the Bonds.
Designation of Responsible Person(s)
The Corporation hereby designates its President as the officer with responsibility to oversee
compliance for Bond issues; provided that for Multifamily Bonds, the related Borrower shall be
responsible for the policies and procedures described herein.
For Multifamily Bonds, the Borrower shall designate an officer thereof in the related Tax
Certificate as its compliance officer with responsibility to oversee compliance with the written procedures
described below, and shall inform the Corporation of such designation and contact information for such
person(s). The Borrower shall also provide timely notice to the Corporation of changes in such personnel
from time to time.
Post-Issuance Compliance Requirements
External Advisors/Documentation
The Corporation shall consult, and in the case of Multifamily Bonds the Borrower shall also
consult, with bond counsel and other legal counsel and advisors, as needed, throughout the Bond issuance
process to identify compliance requirements and to establish procedures necessary or appropriate so that
Bonds which are intended to be tax-exempt will continue to qualify for tax-exempt status on a postissuance basis. Those requirements and procedures shall be documented in the Tax Certificate on or
before the issue date of the Bonds. Those requirements and procedures shall include compliance with
applicable arbitrage rebate requirements by the Borrower (for Multifamily Bonds) or the Issuer or the
Trustee for Single Family Bonds, and all other applicable post-issuance requirements of federal tax law
throughout (and, if applicable, beyond) the term of the Bonds.
For Multifamily Bonds, the Borrower also shall consult with bond counsel and other legal
counsel and advisors, as needed, following issuance of the Bonds to ensure that all applicable postissuance requirements in fact are met. This shall include, without limitation, consultation in connection
with the use of proceeds, as well as future contracts with respect to the use of Bond-financed or
refinanced assets.
For Single Family bonds, the Corporation shall engage one or more qualified rebate analysts
(each a “Rebate Analyst”) to assist in the calculation of arbitrage rebate payable in respect of the
investment of Bond proceeds, unless the Tax Certificate documents that arbitrage rebate will not be
applicable to an issue of Bonds.
For Multifamily Bonds, the Borrower shall be required to engage a Rebate Analyst to assist in the
calculation of arbitrage rebate payable in respect to the [construction period selected].
For Multifamily Bonds, unless otherwise provided by the related indenture or other documents
relating to the Bonds, unexpended Bond proceeds shall be held by the Trustee, and the investment of
Bond proceeds shall be managed by the Borrower. The Borrower shall prepare (or cause the Trustee to
prepare) regular, periodic statements regarding the investments and transactions involving Bond proceeds
and such statements shall be delivered to the Corporation if it so requests.
Arbitrage Rebate and Yield
Unless the Tax Certificate documents that arbitrage rebate will not be applicable to an issue of Bonds,
it is the Corporation’s policy that the Corporation and the Trustee (in the case of Single Family Bonds)
and Borrower (in the case of Multifamily Bonds) shall be responsible for:
•
engaging the services of a Rebate Analyst and, prior to each rebate calculation date, causing the
trustee or other account holder to deliver periodic statements concerning the investment of Bond
proceeds to the Rebate Analyst;
•
providing to the Rebate Analyst additional documents and information reasonably requested by
the Rebate Analyst;
•
monitoring efforts of the Rebate Analyst;
2
•
assuring payment of required rebate amounts, if any, no later than 60 days after each 5-year
anniversary of the issue date of the Bonds, and no later than 60 days after the last Bond of each
issue is redeemed;
•
during the construction (or acquisition period) of each capital project (or single family loans)
financed in whole or in part by Bonds, monitoring the investment and expenditure of Bond
proceeds and consulting with the Rebate Analyst to determine compliance with any applicable
exceptions from the arbitrage rebate requirements during each 6-month spending period up to 6
months, 18 months or 24 months, as applicable, following the issue date of the Bonds; and
•
retaining copies of all arbitrage reports and account statements as described below under “Record
Keeping Requirements” and, upon request, providing such copies to the Corporation.
Use of Bond Proceeds and Bond-Financed or Refinanced Assets:
In the case of Multifamily Bonds, the Borrower shall be responsible for:
•
monitoring the use of Bond proceeds and the use of Bond-financed or refinanced assets (e.g.,
facilities, furnishings or equipment) throughout the term of the Bonds to ensure compliance with
covenants and restrictions set forth in the Tax Certificate(s) relating to the Bonds;
•
maintaining records identifying the assets or portion of assets that are financed or refinanced with
proceeds of the Bonds, including a final allocation of Bond proceeds as described below under
“Record Keeping Requirements;”
•
consulting with bond counsel and other legal counsel and advisers in the review of any contracts
or arrangements involving use of Bond-financed or refinanced assets to ensure compliance with
all covenants and restrictions set forth in the Tax Certificate(s) relating to the Bonds;
•
maintaining records for any contracts or arrangements involving the use of Bond-financed or
refinanced assets as described below under “Record Keeping Requirements;”
•
providing any relevant records described below under “Record Keeping Requirements” required
by the Internal Revenue Service, Securities and Exchange Commission or other federal agency to
verify compliance with federal law, rules or regulations;
•
conferring at least annually with personnel responsible for Bond-financed or refinanced assets to
identify and discussing any existing or planned use of Bond-financed or refinanced assets, to
ensure that those uses are consistent with all covenants and restrictions set forth in the Tax
Certificate relating to the Bonds; and
•
to the extent that the Borrower discovers that any applicable tax restrictions regarding use of
Bond proceeds and Bond-financed or refinanced assets will or may be violated, consulting
promptly with bond counsel and other legal counsel and advisers to determine a course of action
to remediate all nonqualified bonds, if such counsel advises that a remedial action is necessary.
In the case of Single Family Bonds, the Issuer or Trustee, as applicable, shall be responsible for:
•
monitoring the use of Bond proceeds to ensure compliance with covenants and restrictions set
forth in the Tax Certificate(s) relating to the Bonds;
3
•
maintaining records identifying the securities or loans financed with proceeds of the Bonds,
including a final allocation of Bond proceeds as described below under “Record Keeping
Requirements;”
•
consulting with bond counsel and other legal counsel and advisers in the review of any contracts
or arrangements involving use of Bond-financed or refinanced assets to ensure compliance with
all covenants and restrictions set forth in the Tax Certificate(s) relating to the Bonds;
•
maintaining records for any contracts or arrangements involving the use of Bond-financed or
refinanced assets as described below under “Record Keeping Requirements;”
•
providing any relevant records described below under “Record Keeping Requirements” required
by the Internal Revenue Service, Securities and Exchange Commission or other federal agency to
verify compliance with federal law, rules or regulations; and
•
to the extent that the Issuer discovers that any applicable tax restrictions regarding use of Bond
proceeds and Bond-financed or refinanced assets will or may be violated, consulting promptly
with bond counsel and other legal counsel and advisers to determine a course of action to
remediate all nonqualified bonds, if such counsel advises that a remedial action is necessary.
All relevant records and contracts shall be maintained as described below.
Record-Keeping Requirements
For Single Family Bonds the Corporation or the Trustee shall be responsible, and for Multifamily
Bonds the Borrower shall be responsible, for maintaining the following documents for the term of the
related issue or issues of Bonds (including refunding Bonds, if any) plus at least six years:
•
a copy of the Bond closing transcript(s) and other relevant documentation delivered to the
Borrower at or in connection with closing of the issue of Bonds, including any elections made by
the Issuer or Borrower in connection therewith;
•
for Multifamily Bonds, a copy of all material documents relating to capital expenditures financed
or refinanced by Bond proceeds, including (without limitation), construction contracts, purchase
orders, invoices, trustee requisitions and payment records, draw requests for Bond proceeds and
evidence as to the amount and date for each draw of Bond proceeds, as well as documents
relating to costs paid or reimbursed with Bond proceeds and records identifying the assets or
portion of assets that are financed or refinanced with Bond proceeds, including a final allocation
of Bond proceeds;
for Single Family Bonds, a copy of all material documents relating to expenditures financed with
Bond proceeds, including (without limitation), the purchase of loans or mortgage-backed
securities, or other investments, draw requests for Bond proceeds and evidence as to the amount
and date for each draw of Bond proceeds, as well as documents relating to costs paid or
reimbursed with Bond proceeds and records identifying the assets or portion of assets that are
financed or refinanced with Bond proceeds, including a final allocation of Bond proceeds;
•
a copy of all contracts and arrangements involving the use of Bond-financed or refinanced assets;
and
4
•
a copy of all records of investments, investment agreements, arbitrage reports and underlying
documents, including trustee statements, in connection with any investment agreements, and
copies of all bidding documents, if any.
For Bond financings of qualified residential projects subject to the requirements of Section 142(d)
of the Code, it is the Corporation’s policy that the Borrower shall be responsible for maintaining the
following additional documents until the end of the “qualified project period” within the meaning of
Section 142(d)(2)(A) of the Code, plus at least three years:
• a copy of all records evidencing compliance with the requirements of Section 142(d) of the Code
including income verifications, leases, and rental records.
The Borrower, in the Tax Certificate relating to the Bonds and/or other documents finalized at or
before the issuance of the Bonds, shall agree to the foregoing records retention requirements and
procedures.
5
II.
FOR QUALIFIED 501(C)(3) BONDS OR GOVERNMENTAL BONDS ISSUED FOR THE
BENEFIT OF THE CORPORATION (AS A 501(C)(3) ORGANIZATION)
Texas State Affordable Housing Corporation (the “Corporation”) may in the future borrow the
proceeds of tax-exempt obligations (including, without limitation, bonds, notes, loans, leases and
certificates) (together, the “Bonds”) that are issued for the Corporation’s benefit as “governmental bonds”
or as “qualified 501(c)(3) bonds” under Section 145 of the Internal Revenue Code of 1986, as amended
(the “Code”).
The Corporation hereby adopts as of March 24, 2016, the following policies and procedures
(collectively, the “Procedures”) to ensure that the Corporation complies with the requirements of the
Code applicable to the Bonds on an ongoing basis after issuance of the Bonds. These Procedures,
coupled with requirements contained in the tax certificate and other tax-related documents relating to each
issue of Bonds (collectively, the “Tax Certificate”), are intended to constitute written procedures for
ongoing compliance with the federal tax requirements and for timely identification and remediation of
violations of such requirements.
A.
GENERAL MATTERS.
1.
Responsible Officer. The President of the Corporation will have overall responsibility
for ensuring that the ongoing requirements described in these Procedures are met with
respect to Bonds (the “Responsible Officer”).
2.
Establishment of Procedures. The Procedures established herein will be set forth in the
Corporation’s books and records.
3.
Identify Additional Responsible Employees. The Responsible Officer shall identify any
additional persons who will be responsible for each section of the Procedures, notify the
current holder of that office of the responsibilities, and provide that person a copy of the
Procedures. (For each section of the Procedures, this may be the Responsible Officer or
another person who is assigned the particular responsibility.)
4.
a.
Upon employee or officer transitions, new personnel should be advised of
responsibilities under the Procedures and ensure they understand the importance
of the Procedures.
b.
If employee or officer positions are restructured or eliminated, responsibilities
should be reassigned as necessary to ensure that all Procedures have been
appropriately assigned.
Training Required. Prior to the issuance of any Bonds, the Responsible Officer and other
responsible persons shall receive appropriate training that includes the review of and
familiarity with the contents of these Procedures, review of the requirements contained in
the Code applicable to each issue of Bonds, identification of all Bonds that must be
monitored, identification of all facilities (or portions thereof) financed with proceeds of
the Bonds, familiarity with the requirements contained in the related Tax Certificate or
other operative documents contained in the transcript, and familiarity with the procedures
that must be taken in order to correct noncompliance with the requirements of the Code
in a timely manner.
6
B.
5.
Periodic Review. The Responsible Officer or other responsible person shall periodically
review compliance with the Procedures and with the terms of the Tax Certificate to
determine whether any violations have occurred so that such violations can be timely
remedied through the “remedial action” regulations (Treasury Regulation §1.141-12,
§1.142-2, §1.144-2, §1.145-2 or §1.147-2, as applicable) or the Voluntary Closing
Agreement Program described in Internal Revenue Service (“IRS”) Notice 2008-31 (or
successor guidance) and related sections of the Internal Revenue Manual. Such periodic
review shall occur at least annually.
6.
Change in Bond Terms. If any changes to the terms of the Bonds are contemplated, bond
counsel should be consulted. Such modifications could result in a reissuance, i.e., a
deemed refunding, of the Bonds which could jeopardize the tax-exempt status of the
Bonds.
ISSUE PRICE FOR BONDS.
1.
C.
Issue Price. In order to document the issue price of the Bonds, the Responsible Officer
shall consult with bond counsel and obtain a written certification from the underwriter,
placement agent or other purchaser of the bonds as to the offering price of the bonds that
is in form and substance acceptable to the Corporation and bond counsel.
USE OF PROCEEDS. The Responsible Officer or other responsible person shall:
1.
Consistent Accounting Procedures. Maintain clear and consistent accounting procedures
for tracking the investment and expenditures of Bond proceeds, including investment
earnings on Bond proceeds.
2.
Reimbursement Allocations at Closing. At or shortly after closing of a bond issue, ensure
that any allocations for reimbursement expenditures comply with the Tax Certificate.
3.
Timely Expenditure of Bond Proceeds. Monitor that sale proceeds and investment
earnings on sale proceeds of Bonds are spent in a timely fashion consistent with the
requirements of the Tax Certificate.
4.
Costs of Issuance. With respect to Bonds that are qualified 501(c)(3) bonds, monitor that
no more than 2% of the Bond sale proceeds are used to pay costs of issuance.
5.
Requisitions. Utilize requisitions to draw down Bond proceeds, and ensure that each
requisition contains (or has attached to it) detailed information in order to establish when
and how Bond proceeds were spent; review requisitions carefully before submission to
ensure proper use of Bond proceeds to minimize the need for reallocations.
6.
Final Allocation. Ensure that a final allocation of Bond proceeds (including investment
earnings) to qualifying expenditures is made if Bond proceeds are to be allocated to
project expenditures on a basis other than “direct tracing” (direct tracing means treating
the Bond proceeds as spent as shown in the accounting records for Bond draws and
project expenditures). An allocation other than on the basis of “direct tracing” is often
made to reduce the private business use of Bond proceeds that would otherwise result
from “direct tracing” of proceeds to project expenditures. This allocation must be made
within 18 months after the later of the date the expenditure was made or the date the
project was placed in service, but not later than five years and 60 days after the date the
7
Bonds are issued (or 60 days after the Bond issue is retired, if earlier). Bond counsel can
assist with the final allocation of Bond proceeds to project costs. Maintain a copy of the
final allocation in the records for the Bond.
7.
D.
Maintenance and Retention of Records Relating to Proceeds. Maintain careful records of
all project and other costs (e.g., costs of issuance, credit enhancement and capitalized
interest) and uses (e.g., deposits to a reserve fund) for which bond proceeds were spent or
used. These records should be maintained separately for each issue of Bonds for the
period indicated under Section F. below.
MONITORING PRIVATE BUSINESS USE. With respect to Bonds that are subject to the
private activity bond limitations provided in the Code (e.g., governmental bonds and qualified
501(c)(3) bonds), the Responsible Officer or other responsible person shall:
1.
Identify Bond-Financed Facilities. Identify or “map” which outstanding Bond issues
financed which facilities and in what amounts.
2.
Review of Contracts with Private Persons. Review all of the following contracts or
arrangements with non-governmental persons or organizations or the federal government
(collectively referred to as “private persons”) with respect to the Bond-financed facilities
which could result in private business use of the facilities:
a.
Sales of Bond-financed facilities;
b.
Leases of Bond-financed facilities;
c.
Management or service contracts relating to Bond-financed facilities;
d.
Research contracts under which a private person sponsors research in Bondfinanced facilities; and
e.
Any other contracts involving “special legal entitlements” (such as naming rights
or exclusive provider arrangements) granted to a private person with respect to
Bond-financed facilities.
3.
Bond Counsel Review of New Contracts or Amendments. Before amending an existing
agreement with a private person or entering into any new lease, management, service, or
research agreement with a private person, consult bond counsel to review such
amendment or agreement to determine whether it results in private business use.
4.
Establish Procedures to Ensure Proper Use and Ownership. Establish procedures to
ensure that Bond-financed facilities are not used for private use without written approval
of the Responsible Officer or other responsible person. For qualified 501(c)(3) bonds,
establish procedures to ensure that the bond-financed facilities continue to be owned by a
qualified 501(c)(3) organization or a governmental unit.
5.
Analyze Use. Analyze any private business use of Bond-financed facilities and, for each
issue of Bonds, determine whether the 10% limit on private business use (5% in the case
of qualified 501(c)(3) bonds or “unrelated or disproportionate” private business use) is
exceeded, and contact bond counsel or other tax advisors if either of these limits appears
to be exceeded.
8
E.
6.
Remediation if Limits Exceeded. If it appears that private business use limits are
exceeded, immediately consult with bond counsel to determine if a remedial action is
required with respect to nonqualified bonds of the issue under Treasury Regulation
§1.141-12, or if the IRS should be contacted under its Voluntary Closing Agreement
Program. If Bonds are required to be redeemed or defeased in order to comply with the
remedial action rules under Treasury Regulation §1.141-12, such redemption or
defeasance must occur within 90 days of the date a deliberate action is taken that results
in a violation of the private business use limits.
7.
Maintenance and Retention of Records Relating to Private Use. Retain copies of all of
the above contracts or arrangements (or, if no written contract exists, detailed records of
the contracts or arrangements) with private persons for the period indicated under Section
F. below.
ARBITRAGE AND REBATE COMPLIANCE. The Responsible Officer or other responsible
person shall:
1.
Review Tax Certificate. Review each Tax Certificate to understand the specific
requirements that are applicable to each Bond issue.
2.
Arbitrage Yield. Record the arbitrage yield of the Bond issue, as shown on IRS Form
8038-G, 8038 or other applicable form. If the Bonds are variable rate bonds, yield must
be determined on an ongoing basis over the life of the bonds as described in the Tax
Certificate.
3.
Temporary Periods. Review the Tax Certificate to determine the “temporary periods” for
each Bond issue, which are the periods during which proceeds of Bonds may be invested
without yield restriction.
4.
Post-Temporary Period Investments. Ensure that any investment of Bond proceeds after
applicable temporary periods is at a yield that does not exceed the applicable Bond yield,
unless yield reduction payments can be made pursuant to the Tax Certificate.
5.
Monitor Temporary Period Compliance.
Monitor that Bond proceeds (including
investment earnings) are expended promptly after the Bonds are issued in accordance
with the expectations for satisfaction of three-year or five-year temporary periods for
investment of Bond proceeds and to avoid “hedge bond” status.
6.
Monitor Yield Restriction Limitations. Identify situations in which compliance with
applicable yield restrictions depends upon later investments (e.g., the purchase of 0%
State and Local Government Securities from the U.S. Treasury for an advance refunding
escrow). Monitor and verify that these purchases are made as contemplated.
7.
Establish Fair Market Value of Investments. Ensure that investments acquired with Bond
proceeds satisfy IRS regulatory safe harbors for establishing fair market value (e.g.,
through the use of bidding procedures), and maintaining records to demonstrate
satisfaction of such safe harbors. Consult the Tax Certificate for a description of
applicable rules.
8.
Credit Enhancement, Hedging and Sinking Funds. Consult with bond counsel before
engaging in credit enhancement or hedging transactions relating to a Bond issue, and
9
before creating separate funds that are reasonably expected to be used to pay debt service
on Bonds. Maintain copies of all contracts and certificates relating to credit enhancement
and hedging transactions that are entered into relating to a bond issue.
9.
Grants/Donations to Governmental Entities. Before beginning a capital campaign or
grant application that may result in gifts that are restricted to Bond-financed projects (or,
in the absence of such a campaign, upon the receipt of such restricted gifts), consult bond
counsel to determine whether replacement proceeds may result that are required to be
yield restricted.
10.
Bona Fide Debt Service Fund. Even after all proceeds of a given Bond issue have been
spent, ensure that the debt service fund meets the requirements of a “bona fide debt
service fund,” i.e., one used primarily to achieve a proper matching of revenues with debt
service that is depleted at least once each bond year, except for a reasonable carryover
amount not to exceed the greater of: (i) the earnings on the fund for the immediately
preceding bond year; or (ii) one-twelfth of the debt service on the issue for the
immediately preceding bond year. To the extent that a debt service fund qualifies as a
bona fide debt service fund for a given bond year, the investment of amounts held in that
fund is not subject to yield restriction for that year.
11.
Debt Service Reserve Funds. Ensure that amounts invested in any reasonably required
debt service reserve fund do not exceed the least of: (i) 10% of the stated principal
amount of the Bonds (or the sale proceeds of the Bond issue if the Bond issue has
original issue discount or original issue premium that exceeds 2% of the stated principal
amount of the Bond issue plus, in the case of premium, reasonable underwriter’s
compensation); (ii) maximum annual debt service on the Bond issue; or (iii) 125% of
average annual debt service on the Bond issue.
12.
Rebate and Yield Reduction Payment Compliance. Review the Arbitrage Rebate
covenants contained in the Tax Certificate. Subject to certain rebate exceptions described
below, investment earnings on Bond proceeds at a yield in excess of the Bond yield (i.e.,
positive arbitrage) generally must be rebated to the U.S. Treasury, even if a temporary
period exception from yield restriction allowed the earning of positive arbitrage.
a.
Ensure that rebate and yield reduction payment calculations will be timely
performed and payment of such amounts, if any, will be timely made. Such
payments are generally due 60 days after the fifth anniversary of the date of issue
of the Bonds, then in succeeding installments every five years. The final rebate
payment for a Bond issue is due 60 days after retirement of the last Bond of the
issue. The Corporation should hire a rebate consultant if necessary.
b.
If the 6-month, 18-month, or 24-month spending exceptions from the rebate
requirement (as described in the Tax Certificate) may apply to the Bonds, ensure
that the spending of proceeds is monitored prior to semi-annual spending dates
for the applicable exception.
c.
Make rebate and yield reduction payments and file Form 8038-T in a timely
manner.
d.
Even after all other proceeds of a given Bond issue have been spent, ensure
compliance with rebate requirements for any debt service reserve fund and any
10
debt service fund that is not exempt from the rebate requirement (see the
Arbitrage Rebate covenants contained in the Tax Certificate).
13.
F.
Maintenance and Retention of Arbitrage and Rebate Records. Maintain records of
investments and expenditures of proceeds, rebate exception analyses, rebate calculations,
Forms 8038-T, and rebate and yield reduction payments, and any other records relevant
to compliance with the arbitrage restrictions for the period indicated in Section F. below.
RECORD RETENTION. The Responsible Officer or other responsible person shall ensure that
for each issue of Bonds, the transcript and all records and documents described in these
Procedures will be maintained while any of the Bonds are outstanding and during the three-year
period following the final maturity or redemption of that Bond issue, or if the Bonds are refunded
(or re-refunded), while any of the refunding Bonds are outstanding and during the three-year
period following the final maturity or redemption of the refunding Bonds.
11
Tab 7
Renovation of Rollins Martin
Budget
Actual Cost
To Date
Estimated
Cost Per
Unit
Estimated
Cost
Remaining
Total Cost Incurred To Date
Cost to Purchase Rollins Martin Property
Total Cost
980,250
Renovation Completed
Replaced Water Heaters in All Units
Replaced HVAC System in All Units
Replaced Roof on All Four Buildings
Replaced Fence Surrounding Property
Replaced Appliances In All Units
Renovated Washer/Dryer Closets In All Units
Replaced Flooring, Countertops, Cabinets &
Paint In Two Units
Renovation Completed
43,950
85,880
47,714
11,790
14,115
11,675
28,205
243,329
243,329
Total Cost Incurred to Date
1,223,579
Estimated Cost to Complete Renovation
Interior
Floors
Countertops & Sinks
Cabinets
Paint, Baseboards/Paint Materials
Faucets/Toilets/Light fixtures/ Blinds/Ceiling Fans/Misc.
Interior Plumbing
Interior Total
Exterior & Common Area
Landscaping
Exterior Walls(Siding)
Security Cameras
Stairwells
Windows
Light/Plumbing Fixtures
Rehab of Community Room
Exterior & Common Area Total
Total Estimated Cost to Complete Renovation
5,650
2,400
4,900
210
1,500
420
15,080
73,450
31,200
63,700
2,730
19,500
5,460
196,040
5,000
16,000
5,000
5,000
10,000
5,000
10,000
56,000
252,040
252,040
Total Cost to Purchase & Renovate Property
1,475,619
Original Costs Authorized by Board
1,250,000
Additional Amount Requested To Complete Renovation
225,619
Tab 8
THE STATE OF TEXAS
§
§
§
§
HOUSING CORPORATION
1.
The Board of Directors of the corporation (the “Board”) convened on the 24th day
of March, 2016, at the designated meeting place in Austin, Texas, and the roll was called of the
duly constituted members of the Board, who are as follows:
2.
Name
Office
Robert Elliot Jones
William H. Dietz
Gerry Evenwel
Alejandro (Alex) Meade
Jerry Romero
Chairperson
Vice Chairperson
Director
Director
Director
Name
Office
David Long
Elizabeth Bayless
Melinda Smith
Laura Ross
Cynthia Gonzales
President
Secretary
Assistant Secretary
All of the Board of Directors were present except _____________, thus constituting a quorum.
Whereupon, among other business, the following was transacted, to-wit: a written resolution
(the “Resolution”) bearing the following caption:
APPROVING THE EXTENSION OF THE MATURITY DATE
OF AN EQUITY EQUIVALENT INVESTMENT FROM WELLS
FARGO COMMUNITY DEVELOPMENT CORPORATION,
AND RATIFYING AND APPROVING ALL ACTIONS OF THE
PRESIDENT
AND
EXECUTIVE
VICE
PRESIDENT
RELATING SUCH EXTENSION, AND AUTHORIZING AND
APPROVING FURTHER ACTIONS RELATED THERETO.”
AUS 536503176v3
was duly introduced for the consideration of said Board and read in full. It was then duly moved
and seconded that the Resolution be adopted; and, after due discussion, and request for public
comment, the motion carrying with it the adoption of the Resolution, prevailed and carried by the
following vote:
__ AYES
__ NOES
__ ABSTENTIONS
3.
described in the above and foregoing paragraph is attached to and follows this certificate; that the
Resolution has been duly recorded in said Board’s minutes of the meeting; that the persons
named above are the duly chosen, qualified and acting officers and members of the Board as
indicated therein; that each of the officers and members of the Board was duly and sufficiently
notified officially and personally, in advance, of the time, place and purpose of the aforesaid
meeting, and that the Resolution would be introduced and considered for adoption at the
meeting, and each of said officers and members consented, in advance, to the holding of the
meeting for such purpose.
SIGNED this 24th day of March, 2016.
2
AUS 536503176v3
RESOLUTION NO. 16-____
APPROVING EXTENSION OF THE MATURITY DATE OF AN
EQUITY EQUIVALENT INVESTMENT FROM WELLS
FARGO COMMUNITY DEVELOPMENT CORPORATION,
AND RATIFYING AND APPROVING ALL ACTIONS OF THE
PRESIDENT
AND
EXECUTIVE
VICE
PRESIDENT
RELATING TO SUCH EXTENSION, AND AUTHORIZING
AND APPROVING FURTHER ACTIONS RELATED
THERETO.
has been duly created and organized under the authority of Texas Government Code,
Title 10, Chapter 2306, Subchapter Y, as amended, and pursuant to and in accordance
with the provisions of the Texas Non-Profit Corporation Act, Article 1396-1.01 et seq.,
now codified as the Texas Business Organizations Code, including Chapter 22 thereof, as
amended (the “Act”); and
WHEREAS, the Corporation has previously obtained from Wells Fargo
Community Development Corporation (“Wells Fargo”) an “equity equivalent
investment” as that term is defined in the Community Reinvestment Act of 1977, 12
U.S.C. Section 2901, et seq. (the “EQ2”) in the principal amount of one million fifty
thousand dollars ($1,050,000.00), as evidenced by that certain Loan Agreement dated
April 19, 2006 by and between the Corporation and Wells Fargo (the “EQ2 Agreement”);
and
WHEREAS, the original maturity date provided for in the EQ2 Agreement (the
“Maturity Date”) was ten (10) years after the Disbursement Date (as defined in the EQ2
Agreement);
WHEREAS, the EQ2 Agreement contains a provision for a two (2) year extension
of the Maturity Date (the “Extension”); and
WHEREAS, the Corporation has requested the Extension in accordance with the
terms of the EQ Agreement; and
WHEREAS, the Board of Directors of the Corporation (the “Board”), after due
consideration, has determined to ratify and approve the election of the Extension by the
President of the Corporation, and the execution of any and all documents as may be
necessary or required by Wells Fargo to evidence or secure the Extension;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE TEXAS STATE AFFORDABLE HOUSING CORPORATION THAT:
3
AUS 536503176v3
Section 1.
Extension of the Maturity Date of the EQ2. The Extension of the
Maturity Date of the EQ2 by two (2) years is approved and ratified as presented to the
Board on March 24, 2016, and the execution by the President of the Corporation of any
and all documents as may be necessary or required by Wells Fargo to evidence or secure
the Extension is hereby ratified and approved.
Section 2.
Execution and Delivery of Other Documents or Items. The Board
hereby authorizes the President of the Corporation, or in absence of the President, the
Executive Vice President of the Corporation (at the direction of the President), to
negotiate and execute any additional required documents to provide for the Extension,
after consultation with legal counsel to the Corporation. The Board further authorizes the
President of the Corporation, or in absence of the President, the Executive Vice President
of the Corporation (at the direction of the President), after consultation with legal counsel
to the Corporation, to consent to, accept, execute and attest to such other certificates,
documents, instruments, letters of instruction, written requests and other papers, whether
or not mentioned herein, as may be necessary or convenient to carry out or assist in
carrying out the purpose of the EQ2 Agreement, the Extension and this Resolution, to the
extent the President concludes such contracts or other documents are in the best interest
of the Corporation.
Section 3.
Ratification of Certain Prior Actions. All prior actions taken by or
on behalf of the Corporation in connection with the Extension, or any matter related
thereto, are hereby authorized, ratified, confirmed and approved.
Section 4.
upon its adoption.
Effective Date. This Resolution shall be effective immediately
4
AUS 536503176v3
CORPORATION
________________________________________________
Chairperson, Texas State Affordable Housing Corporation
ATTEST:
___________________________________________
5
AUS 536503176v3

Board Packet - Texas State Affordable Housing Corporation

Transcription

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