TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS BOARD MEETING Capitol Extension Room E1.026 1100 Congress Avenue Austin, Texas 11:00 a.m. Monday, March 20, 2006 BOARD MEMBERS: ELIZABETH ANDERSON, Chairman C. Kent Conine, Vice-Chairman (Not Present) VIDAL GONZALEZ, Member SHADRICK BOGANY, Member NORBERTO SALINAS, Member STAFF: BILL DALLY, Acting Executive Director ON THE RECORD REPORTING (512) 450-0342 2 I N D E X AGENDA ITEM PAGE CALL TO ORDER, ROLL CALL 6 CERTIFICATION OF QUORUM PUBLIC COMMENT 11 ACTION ITEMS Item 1 Presentation, Discussion and Possible 54 Approval of Minutes of the Board Meeting of February 15, 2006 Item 2 Presentation and Discussion of the Findings 54 of the Recently Completed Market Study of the Houston Metropolitan Statistical Area (MSA)by Vogt Williams & Bowen Item 3 Presentation, Discussion and Possible Approval of Housing Tax Credit Items: a) Housing Tax Credit Amendments 03254 Bayou Bend, Waller, Waller 76 County 05243 Villas of Hubbard, Hill County 77 b) Housing Tax Credit Extensions for Commencement of Substantial Construction 04200 Alvin Manor Estates, Alvin, 77 Brazoria County 04203 Alvin Manor, Alvin, Brazoria 77 County 04224 Commons of Grace Apartments, 78 Harris County c) Adoption of Amendments to Title 10, 81 Part 1, Chapter 50, 2006 Housing Tax Credit Program Qualified Allocation Plan and Rules, §50.9(I)(6), regarding the Level of Community Support from State Elected Officials d) Issuance of Determination on Tax- Exempt Bond Transactions with Other Issuers: 05452 Lindberg Parc Senior Apartments, 82 Fort Worth, Texas ON THE RECORD REPORTING (512) 450-0342 3 Tarrant County is the Issuer Requested Credit Amount of $756,098 05450 TownParc at Bastrop, Bastrop, 83 Texas Bastrop HFC is the Issuer Recommended Credit Amount of $760,050 05454 Lodge at Silverdale Apartment 84 Homes, Conroe, Texas Montgomery County HFC is the Issuer Recommended Credit Amount of $606,538 060402 Hillcrest Manor Senior 84 Community, Lubbock, Texas Lubbock HFC is the Issuer Requested Amount of $629,797 060405 Sea Breeze Senior Apartments, 85 Corpus Christi, Texas Sea Breeze, a Public Facilities Corp., is the Issuer Recommended Credit Amount of $614,145 Item 4 Presentation, Discussion and Possible Approval Multifamily Private Activity Bond Program: a) Proposed Issuance of Multifamily Mortgage Revenue Bonds and Four Percent (4%) Housing Tax Credits with TDHCA as the Issuer For: 05618 Creekside Manor Senior Community, 90 Killeen, Texas in an Amount Not to Exceed $10,300,000 and Issuance of a Determination Notice (Recommended Credit Amount of $390,353) 05626 Bella Vista Apartments, 121 Gainesville, Texas in an Amount Not to Exceed $6,800,000 and Issuance of a Determination Notice (Recommended Credit Amount of $518,676) 05631 Generations at Mansfield, 100 Mansfield, Texas in an Amount Not to Exceed $16,100,000 and Issuance of a Determination Notice (Requested Credit Amount of $791,769) 05627 Skyline at City Park ON THE RECORD REPORTING (512) 450-0342 4 Apartments, 146 Houston, Texas in an Amount Not to Exceed $13,300,000 and Issuance of a Determination Notice (Recommended Credit Amount of $821,219) b) Inducement Resolution Declaring to 174 Issue Multifamily Housing Mortgage Revenue Bonds for Developments Throughout the State of Texas and Authorizing the Filing of Related Applications for the Allocation of Private Activity Bonds with the Texas Bond Review Board for Program Year 2006: 2006-011 Parkwest Apartment Homes, Houston, Texas 2006-012 Ennis Senior Estates, Ennis, Texas Item 5 Presentation, Discussion and Possible Approval of Programmatic Items: a) Section 8 Annual PHA Plan 176 b) Section 8 Payment Standards 176 c) Proposed Issuance of Commitments 178 for HOME Rental Developments For: 060401 Northwest Residential, Georgetown, Texas in an Amount Not to Exceed $1,950,000 (Deferred) 060008 Hayden Ridge, Granbury, Texas in an Amount Not to Exceed $420,000 (Approved) 05265 Family Estates of Bridgeport V, 196 Affordable Housing of Parker County, Bridgeport, Texas in an Amount Not to Exceed $358,800 (CHDO Rental Funds) and $16,000 (CHDO Operating) Item 6 Presentation, Discussion and Possible Approval of Financial Items: a) Approval of Prospective Single Family 197 Mortgage Revenue Bond Issues and Programs for 2006 ON THE RECORD REPORTING (512) 450-0342 5 b) Preliminary Approval of Single Family 202 Mortgage Revenue Bonds, 2006 Series A and 2006 Series B c) Approval of Resolution Amendment for 207 Single Family Mortgage Revenue Bonds, 2004 Series And 2004 Series B d) Approval of Investment Policy 208 e) Approval of Loan Star Mortgage 210 Program Interest Rate Reset f) Approval of 2006 Mortgage Credit 211 Certificate Program g) Approval of Asset Management Oversight 213 Agreement with Texas State Affordable Housing Corporation (TSAHC) Item 7 Presentation, Discussion and Possible Ratification of: a) Disaster Relief Contracts in Response 216 to NOFAs Announcing $8.3 million in HOME Funds and $1.8 million in Housing Trust Funds Awarded by the Executive Director under the Katrina Board Policy Approved at the September 16, 2005 Board Meeting and as Amended at the October 13, 2005 Board Meeting to Include Rita Impacted Areas b) TDHCA Activities Regarding $74,523,000 217 in Community Development Block Grant (CDBG) Funds Provided under HR 2863 Through the Department of Housing and Urban Development NOFA EXECUTIVE SESSION 89 OPEN SESSION 90 REPORT ITEMS 221 ADJOURN 221 ON THE RECORD REPORTING (512) 450-0342 6 P R O C E E D I N G S MR. GONZALEZ: The first item of business is the roll call. MR. HAMBY: Actually, Mr. Gonzalez, the first order of business would probably be to elect a temporary chairman since the chairman is absent. MR. GONZALEZ: Recognize Shad. MR. BOGANY: I'd like to get this meeting rolling. Our chair and our vice-chair is not able to be here today, and so what we're going to do is elect a temporary chair, and I'd like to move that Vidal Gonzalez be elected temporary chair. MAYOR SALINAS: Second. MR. GONZALEZ: We have a motion and a second, seconded by Mayor Salinas. At this point I would like to recognize the new board member that has been already approved and sworn in, and that's Mr. Dionicio Vidal Sonny Flores. He was previously with the General Services Commission Board; he's currently the president of PEC Corporation; he's from Houston; and he's class of '58 from Texas A&M University. We'd like to welcome you onboard. (Applause.) MR. GONZALEZ: We have a motion and a second. ON THE RECORD REPORTING (512) 450-0342 7 All those in favor, please indicate by saying aye. (A chorus of ayes.) MR. GONZALEZ: All opposed? (No response.) MR. GONZALEZ: Motion carries. We'll go over the board of directors roll call at this point. Beth Anderson should be joining us later, she's absent at this time. Kent Conine is absent at this time. Mayor Salinas? MAYOR SALINAS: Here. MR. GONZALEZ: Shad Bogany? MR. BOGANY: Here. MR. GONZALEZ: And Mr. Flores? MR. FLORES: Here. MR. GONZALEZ: And I do have a question. Do you go by Sonny or Dionicio? MR. FLORES: I was named after my father and my grandfather, and then my mother was in the receiving room at my house, not knowing that the doctor insisted on a name before he walked out the door, and my grandfather and my father named me after themselves, and my mother balked beginning day one, and I've been called Sonny by her all her life, so if you'd call me that, I'd appreciate it. ON THE RECORD REPORTING (512) 450-0342 8 MR. GONZALEZ: Okay, that's great. For all the rest, it's Mr. Board Member, I guess. (General laughter.) MR. GONZALEZ: We've got some witness affirmation forms, and so we'll go into the public comment. We're going to limit the public comment to two minutes, and I'll start off with the first one, Mr. Granger MacDonald, who has been here since early in the morning, chomping at the bit. MR. MacDONALD: Thank you, Mr. Chairman. Congratulations, I think. Anyway, you can see after a few meetings whether you think that's good or not. (General laughter.) MR. MacDONALD: I'd like to encourage the board to consider forward commitments in Regions 3 and 9 this term. The GO Zone for the Houston Katrina/Rita situation is very well established and very needed, but Dallas and San Antonio are deeply affected by the hurricanes. We've got 100 percent occupancy in both communities. We finished a property in early September in Dallas, 150 units, it was 100 percent leased by the end of October. I'd love to tell you it's the world's greatest property because I believe that, but I think that the storm had a lot to do with it. There are no available ON THE RECORD REPORTING (512) 450-0342 9 units for people to rent for low income housing right now in Dallas; San Antonio is the same way. We brought 250 units of rehab online in late August, we have a huge waiting list there already. Both communities should have been somehow considered in the same situation for the additional funds that the GO Zone was, and I'd like for you to consider forward commitments as the time becomes appropriate in the next few months. Thank you. MR. GONZALEZ: Thank you. Our next person is Robert J. Wood, city manager from Flatonia. MR. WOOD: Good morning. My name is Robert Wood. I'm the city manager of the City of Flatonia, and I'm here to comment briefly on some of the changes that were made recently to the HOME Program.