TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS BOARD MEETING 9:34 a.m. Thursday, June 14, 2007 Auditorium Capitol Extension Building Austin, Texas MEMBERS PRESENT: ELIZABETH ANDERSON, Chair SONNY FLORES SHADRICK BOGANY C. KENT CONINE GLORIA RAY NORBERTO SALINAS MICHAEL GERBER, Executive Director ON THE RECORD REPORTING (512) 450-0342 2 I N D E X ITEM PAGE CALL TO ORDER, ROLL CALL 3 CERTIFICATION OF QUORUM 3 Lender of the Year Award 5 PUBLIC COMMENT 8 Public Presentation of the Results of the Home Program Advisory Task Force 53 CONSENT AGENDA 42 Item 1 Approval of items presented in the Board materials Item 2 Multifamily Division Items - Housing Tax Credit Items Item 3 HOME Division Items Item 4 Disaster Recovery Division Items Item 5 Portfolio Management & Compliance Division Items Item 6 Real Estate Analysis Division Items EXECUTIVE SESSION 135 OPEN SESSION 137 REPORT ITEMS 274 Executive Director's Report TDHCA Outreach Activities, May 2007 Monthly Report on HOME Amendments Granted Legislative Update 2007 Competitive Housing Tax Credit Challenges Summary of Developer Actions for Residences on Old Denton Bond Transactions ADJOURN 276 ON THE RECORD REPORTING (512) 450-0342 3 P R O C E E D I N G S MS. ANDERSON: If I can ask you to take your seats, we're ready to start momentarily. Good morning, and welcome to the June 14 meeting of the Governing Board of the Texas Department of Housing and Community Affairs. We're glad to see such a great and large group here with us today. I call the meeting to order, and the first order of business is to call the roll. Vice Chairman Conine? MR. CONINE: I'm here. MS. ANDERSON: Mr. Bogany? MR. BOGANY: Here. MS. ANDERSON: Ms. Ray? MS. RAY: Here. MS. ANDERSON: Mr. Flores? MR. FLORES: Here. MS. ANDERSON: Mayor Salinas? MAYOR SALINAS: Here. MS. ANDERSON: We have six members present; we do have a quorum. We're very pleased today in honor of June Home Ownership Month, to honor two of the shining stars in your First Time Homebuyer Program, that makes the dream of home ownership available to many, many Texans statewide. ON THE RECORD REPORTING (512) 450-0342 4 And this program is truly a partnership as you all know. The Department issues bonds, but the program is not possible without the yeoman's work of lenders all across the State, our participating lenders as well as I would certainly not want to leave out, particularly with Mr. Bogany here, the people that connect the homebuyer with their home. And that is, our wonderful association with realtors throughout the State of Texas. MR. CONINE: What about builders? MS. ANDERSON: Oh, I guess they have something to do with this, don't they? MR. CONINE: Yes. He's not the only special person up here. MS. ANDERSON: You know, you just got special interests everywhere you turn, don't you? So we are here today to honor two -- an individual and an entity that really rank first in our -- around the State in this program. Mr. Gerber? MR. GERBER: Madam Chair, Board members, through the issuance of low interest rate mortgage revenue bond loans, the Texas First Time Homebuyers Program in conjunction with our network of lenders and realtors originated over $280 million in mortgage loans in 2006, ON THE RECORD REPORTING (512) 450-0342 5 and enabled approximately 2500 individuals and families to experience the benefits of home ownership. As a result of increased program awareness in the lender community, this program experienced its most successful year to date, and provided home ownership opportunities to individuals and families across our state. In recognition of their efforts, the TDHCA Governing Board today is recognizing the top lending institution and the top-producing loan officer under the Texas First Time Homebuyers Program. Our Vice Chair, Mr. Conine is going to present the first award, for the Lender of the Year. MR. CONINE: Thank you, Mike. In 2006, last year Countrywide Home Loans originated 331 loans totaling over $32 million through our Texas First Time Homebuyers Program. The homebuyers' average area median family income was 71 percent, and 47 percent of the loans originated were made to minority homebuyers. They have 93 branch offices located throughout the State. Countrywide also allows mortgage brokers to deliver home loans through their wholesale division as well. As a result, an additional 71 loans were originated and funded through the program, totaling over ON THE RECORD REPORTING (512) 450-0342 6 $8 million. Now today we have with us two individuals from Countrywide that are here to receive the Department's award, Mike Awadis, who's a senior vice president for government agency sales; and Tonya Beckley, who is the assistant vice president for mortgage revenue bonds. Please join me in congratulating our Lender of the Year. (Applause.) MR. AWADIS: Thank you very much. Appreciate the opportunity. Thank you. (Applause.) MR. CONINE: And Mr. Bogany's going to present the award for the Loan Officer of the Year. Shad? MR. BOGANY: In 2006, Connie Tharp originated, closed 31 loans under the Texas First Time Homebuyers Program. This represents one of the largest levels of loan origination by an individual loan officer in the State. She has worked with the banking industry for over 10 years, and she has participated in the Texas First Time Homebuyers Program for the last two years. She has been an asset to the mortgage industry, she brings to where the tire meets the road, and I'd like ON THE RECORD REPORTING (512) 450-0342 7 to -- us all together and congratulate Officer of the Year, Ms. Connie Tharp with Wells Fargo Bank. (Applause.) MR. GERBER: And Madam Chair, Board members, just because we're acknowledging the hard work of these two -- this company and this individual, we certainly want to express our appreciation to all of the lenders and realtors and other participants in the First Time Homebuyer Program who are in this room, and who are out moving our First Time Homebuyer dollars into the hands -- mortgages into the hands of families who need them. This has been a great week for TDHCA as we just a week ago closed on the $97 million in First Time Homebuyer funds for Program 69. And they are moving at a record pace. And many of you have had the chance in the last week to participate in events around the State to get the word out that more dollars are in that pipeline, and we hope that -- we know that our realtor network and our lender network are moving those dollars aggressively. And we appreciate the Board's support, we appreciate our stakeholders' support, and we look forward to bringing our next issuance program, 70, to you later this summer. So thanks to all. MS. ANDERSON: And I want to take this ON THE RECORD REPORTING (512) 450-0342 8 opportunity to thank several members of staff, including Mr. Gerber, Michael Lyttle, Eric Pike, Jorge Reyes, Jill McFarren and Gordon Anderson for outstanding work that they have done in the month of June, and all of the time, but in the month of June specifically we've had excellent June home ownership events in Laredo, Houston, San Antonio, Dallas and Brownsville, with key legislative partners and the lenders and the realtors in those local areas, that -- And we have the -- the Legislators have given keys to the house and a welcome mat and green plants to new homebuyers who participated in our program in those communities. It took a lot of work, it's a lot of logistics to pull that off, so I'm very -- I want to ask the Board to join me in thanking the staff for their excellent work. (Applause.) MS. ANDERSON: Yesterday we were in Dallas with Senator Royce West and had a great event in Dallas, and I want to thank Senator West also formally for his sponsorship of our use of the Capitol auditorium today. We now will proceed to public comment. And we have quite a bit of public comment this morning and then we have a presentation that we eagerly await from the HOME Program Advisory Task Force. ON THE RECORD REPORTING (512) 450-0342 9 But first we'll -- we will have public comment. The first witness is Representative Mike Hamilton. And the next witness is Mayor Brown Claybar. We're going to ask that you try to limit your comments to three minutes. Thank you. REP. HAMILTON: We'll make it real short. Thank you, Ms. Chairman. Members, I just want to tell you out loud number one, to come over here and tell you from the redistricted area with the money finally flowing through to get some help and stuff, and I didn't mean to -- MS. ANDERSON: I know, I know. It made a huge mess. REP. HAMILTON: -- and I just wanted to tell you all, thank you for everything you all have done there, and Mike -- also I want to tell Mike Gerber what a great person you have here working to -- excellent down there working with us and I just wanted to say, thank you and appreciate all of the help that you all have done. Today I'm here for a good -- a real quick, well I'll just tell you what -- in a little place called Orange Palm Garden Apartments. It's a senior complex that's going in, it's on your local and consent calendars. And I just want you to know that this is a very favorable place.