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Home My WebLink About2009/03/24-Minutes-Fort Worth Housing Finance Corporation (FWHFC) CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 24, 2009 Present: President Kathleen Hicks Vice President Danny Scarth Secretary Frank Moss (arrived at 11:18 a.m.) Director Mike Moncrief Director Salvador Espino Director Jungus Jordan Director Carter Burdette Director Joel Burns City staff: Tom Higgins, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Jerome C. Walker, Deputy Director of Housing and Economic Development Department Other staff: Dale Fisseler, City Manager Karen Montgomery, Assistant City Manager Fernando Costa, Assistant City Manager Jay Chapa, Director of Housing and Economic Development Ardina Washington, Business Development Coordinator, Housing and Economic Development Department Marty Hendrix, City Secretary Cynthia Garcia, Assistant Director, Housing and Economic Development Department Greg Jordan, Assistant Director, Financial Management Services Carl Smart, Assistant to the City Manager Karen Meunier, Housing Program Manager, Housing and Economic Development Department Call to Order (Agenda Item 1) With a quorum present, President Hicks called the meeting to order for the Board of Directors of the Fort Worth Housing Finance Corporation (HFC) at 10:04 a.m. on Tuesday, March 24, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas, with Council Member Moss temporarily absent. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 24, 2009 Recess President Hicks recessed the meeting of the HFC at 10:04 a.m. for members to convene into the City Council meeting. Reconvene President Hicks reconvened the meeting of the HFC at 11:17 a.m. on March 24, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas. Approval of Minutes of the March 3, 2009 Meeting (Agenda Item 2) President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, March 3, 2009 meeting. MOTION: Upon a motion made by Director Scarth and seconded by Director Burdette, the Board of Directors voted eight (8) "ayes" and zero (0) "nays", to approve the Tuesday, March 3, 2009, minutes of the Fort Worth Housing Finance Corporation as presented. The motion carried. President Hicks adjourned the meeting into Executive Session at 11:17 a.m., on Tuesday, March 24, 2009, in accordance with the requirements of the Open Meetings Law. Executive Session (Agenda Item 3) President Hicks called to order the Executive Session was called to order at 11:17 a.m. to discuss the following items: Council Member Moss arrived at the meeting. A. Seek the advice of its attorneys concerning legal issues regarding any current agenda items that are exempt from public disclosure under Article X, Section 9 of the Texas State Bar Rules, as authorized by Section 551.071 of the Texas Government Code; 1. Legal issues concerning any item listed on today's Fort Worth Housing Finance Corporation meeting agenda. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 24, 2009 Executive Session (cont'd) (Agenda Item 3) B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the Corporation in negotiations with a third party; and C. Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. President Hicks adjourned the Executive Session at 11:25 a.m. President Hicks reconvened the called — special session of the Fort Worth Housing Finance Corporation meeting at 11:26 a.m. Adopt Resolution Authorizing an Agreement for the Sale to SA Affordable Housing, LLC, of $1,000,000 Real Estate Lien Note from Oak Timbers-North Greenbriar, L.P. (Agenda Item 4) Jerome Walker, Deputy Director of Housing and Economic Development Department, addressed the Board relative to the proposed resolution. He provided an overview of the project that was located at 5201 James Avenue, south of the James Avenue Service Center and north of the North Greenbriar Model Blocks Community. He provided a project description as follows: • 128-unit new construction rental community for seniors (65 years of age and above) located in Council District 9 • Pro forma Rent Limits o 13 (30% AMI) 1 Bedroom/l Bath $356.00 o 51 (60% AMI) 1 Bedroom/l Bath $713.00 o 59 (60% AMI) 2 Bedroom/2 Bath $856.00 0 5 Market 2 Bedroom/2 Bath $856.00 Mr. Walker noted that while the rent limits for the 60% and market rate were the same, there was an income restriction for those citizens who would reside in the affordable units. He continued this presentation on description of the project as follows: • Project received TDHCA 2006 LIHTC award • Total Development cost: $15,741,250.00 • FWHFC provided interim construction loan 81.0 million of gap financing Le\erage ratio: 1 :15 FWHFC Investment: 57.916.00 per will CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED— SPECIAL SESSION TUESDAY, MARCH 24, 2009 Adopt Resolution Authorizing an Agreement for the Sale to SA Affordable Housing, LLC, of $1,000,000 Real Estate Lien Note from Oak Timbers-North Greenbriar, L.P. (cont'd) (Agenda Item 4) Mr. Walker provided pictures of the Oak Timbers property and stated that the project was approximately 95 percent complete. He advised that the property contained a 4,100 square foot community facility that included a fitness center and senior activities center. He added that behind the property was a 365 square foot pool house/cabana and he displayed pictures of various buildings on the property. He advised of the following original loan terms: • Amount: $1,000,000.00 (Fannie Mae Credit Facility) • Interest Rate: Variable, adjusted quarterly. LIBOR +270 bps • Term: 24 months from initial closing (Expired December 6, 2006) • Maturity: December 19, 2008 • Extension Provision: 1-six month extension Mr. Walker stated that the terms with the current borrower were as follows: • Amount: $1,000,000.00 • Interest Rate: Variable, adjusted quarterly. LIBOR+270 bps • Term: 27 months from initial closing(Expired: December 6, 2006) • Maturity: March 31, 2009. • Extension Provision: $1,500.00 extension fee from Fannie Mae Mr. Walker advised that Sun America, the equity partner in the project was requesting: • Sale of Oak Timbers-North Greenbriar LP Real Estate Note, subordinate Deed of Trust and Loan Guaranty to SA Affordable Housing LLC • $1,004,240.27 Loan Pay-Off on March 25, 2009 • $1,000,000.00 Principal • $ 1,500.00 Extension Fee • $ 2,740.00 Accrued Interest (Accrued interest paid to date: $136,506.00) Mr. Walker concluded his presentation by stating that staff s recommendation was that the HFC sell the loan (note, subordinate deed of trust and loan guaranty) to the equity partner and close out the Fannie Mae Credit Facility. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED— SPECIAL SESSION TUESDAY, MARCH 24, 2009 Adopt Resolution Authorizing an Agreement for the Sale to SA Affordable Housing, LLC, of $1,000,000 Real Estate Lien Note from Oak Timbers-North Greenbriar, L.P. (cont'd) (Agenda Item 4) MOTION: Upon a motion made by Director Moncrief and seconded by Director Jordan, the Board voted eight (8) "ayes" and zero (0) "nays" to approve FWHFC Resolution No. 2009-03 as presented. The motion carried. Request for Future Agenda Items and/or Reports (Agenda Item 5) President Hicks opened the floor on requests for future agenda items. No requests were made by Board members. Adiourn (Agenda Item 6) With no further discussion, President Hicks adjourned the called — special session of the Fort Worth Housing Finance Corporation Board at 11:33 a.m., on Tuesday, March 24, 2009. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 12`x' day of May 2009. APPROVED: athl en Hicks President ATTEST: Frank Moss Secretary CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED— SPECIAL SESSION TUESDAY, MARCH 24, 2009 P red and respectfully submitted by: on Gonzales Assistant City Secretary