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Home My WebLink About2009/09/01-Minutes-Fort Worth Housing Finance Corporation (FWHFC) CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Present: President Kathleen Hicks Vice President Danny Scarth Secretary Frank Moss (Arrived at 1:06 p.m.) Director Salvador Espino Director W.B "Zim" Zimmerman Director Jungus Jordan Director Carter Burdette (Arrived at 1:02 p.m.) Director Joel Burns (Arrived at 1:05 p.m.) Absent: Director Mike Moncrief City staff: Tom Higgins, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Jay Chapa, Director of Housing & Economic Development Department Cynthia Garcia, Assistant Director, Housing & Economic Development Department Mark Folden, Housing Program Manager, Housing& Economic Development Department Other staff: Marty Hendrix, City Secretary LeAnn Guzman, Assistant City Attorney 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 (Corporation) at 1:00 p.m. on Tuesday, September 1, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throekmorton, Fort Worth, Texas, with Director Mike Moncrief absent and Directors Moss, Burdette and Burns temporarily absent. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED— SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Approval of Minutes of the August 4, 2009 Meeting (Agenda Item 2) President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, August 4, 2009, meeting. MOTION: Upon a motion made by Director Scarth and seconded by Director Espino, the Board of Directors voted five (5) "ayes" and zero (0) "nays", with Director Moncrief absent and Directors Moss, Burdette and Burns temporarily absent, to approve the Tuesday, August 4, 2009, minutes of the Fort Worth Housing Finance Corporation as presented. The motion carried. Written Reports: Fort Worth Housing Finance Corporation Financial Report through July 31, 2009 (Agenda Item 3-A) President Hicks referenced the Financial Report through July 31, 2009, and opened the floor for discussion on the report. (Director Burdette arrived at the meeting.) The written report was provided to the Board as a matter of information. There was no formal action taken on the report. Adopt Resolution Accepting Conveyance of 5221 Pinson Street and 1238 E. Jefferson Avenue from City of Fort Worth (Agenda Item 4) (Director Burns arrived at the meeting.) Mr. Mark Folden, Housing Program Manager, Housing and Economic Development Department addressed the Board regarding the proposed resolution. He stated that these properties were constructed by Community Housing Development Organizations (CHDOs). He provided the following background information on the property at 1238 E. Jefferson: • Built in 2005 by Sininian CHDO • HOME funds were utilized in construction • Sininian did not sell house • City of Fort Worth foreclosed on property in December 2008 CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED— SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Adopt Resolution Accepting Conveyance of 5221 Pinson Street and 1238 E. Jefferson Avenue from City of Fort Worth (cont'd) (Agenda Item 4) ;uyerProperty has been vandalized and needs repairs to prepare for sale to HOME eligible • Property is located in District 8 Mr. Folden displayed a map that depicted the location of the property that was three (3) blocks west of South Riverside. He also displayed various pictures of the inside of the property that had been vandalized and advised that the windows had been boarded up to secure the property. He provided a breakdown of the construction estimate for repair of the property to bring it up to a condition where it could be sold as follows: • Site Work $1,000.00 • Doors $1,615.00 • Windows $2,400.00 • Paint Exterior Trim $1,008.00 • Electric Heat/AC $4,000.00 • Electrical $2,300.00 • Plumbing $ 900.00 • Interior Finish $6,010.20 • Kitchen $4,820.00 • Bathrooms $2,514.40 • TOTAL $26,707.60 • Contingency+ O&P (20 %) $5,341.52 • CONSTRUCTION TOTAL $32,049.12 Mr. Folden provided the following background information for the property located at 5221 Pinson: • Built in 2006 by Spirit of Prayer (SOP) CHDO • HOME funds were utilized in construction • SOP did not sell house • SOP filed bankruptcy in December 2008 • City of Fort Worth foreclosed on property in July 2009 • Property has been vandalized and needs repair to prepare for sale to HOME eligible buyer • Property is located in District 5 CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Adopt Resolution Accepting Conveyance of 5221 Pinson Street and 1238 E. Jefferson Avenue from City of Fort Worth (cont'd) (Agenda Item 4) Mr. Folden also displayed a map that depicted the location of the property and pictures reflecting the condition of the interior of the property. He provided the following breakdown of the construction estimate for this property: • Exterior Wash $ 420.00 • Doors $1,505.00 • Windows $1,075.00 • Paint Exterior Trim $2,500.00 • Electric Heat/AC $3,500.00 • Electrical $2,800.00 • Plumbing $ 300.00 • Interior Finish $2,193.00 • Kitchen $2,493.75 • Bathrooms $ 940.00 • TOTAL (Includes General Conditions) $17,726.75 • Contingency+ O&P (20%) $3,543.35 • CONSTRUCTION TOTAL $21,272.10 Mr. Folden advised that both properties had associated back taxes and closing costs that totaled approximately $80,000.00 and provided the cost summary as reflected below: 1238 Jefferson 5221 Pinson Construction $32,049.12 Construction $21,272.10 Back Taxes $13,417.57 Back Taxes $8,814.59 Closing $2,000.00 Closing $2,000.00 TOTAL $47,466.69 TOTAL $32,086.69 Mr. Folden advised that staff recommended the following action be taken by the Board: • FWHFC purchase the properties from the City of Fort Worth • FWHFC goes out for bids on Scope of Work o Total Estimated Cost: $79,553.38 (Preliminary) • FWHFC contracts to make the repairs • Fkk'HF(' markets and sells the properties to HOME eligible buyers CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Adopt Resolution Accepting Conveyance of 5221 Pinson Street and 1238 E. Jefferson Avenue from City of Fort Worth (cont'd) (Agenda Item 4) President Hicks opened the floor for discussion on this issue. Director Espino stated that the FWHFC would expend approximately $80,000.00 to repair the properties and asked if the funding was federal funding or operating money the FWHFC currently possessed. (Director Moss arrived at the meeting.) Mr. Folden responded by stating that federal funding would not be able to be used as HOME dollars had already been used in the properties and therefore some non-federal funds would have to be used. Director Espino inquired if the cash or equivalents in the FWHFC assets reflected in the financial report balance sheet would be used and Mr. Folden responded affirmatively. Director Jordan stated that the local funds were being used to bring the properties up to par to be able to pay off the federal loan. Senior Assistant City Attorney Ganske clarified that the FWHFC did not have to pay back the federal funds and that the properties just had to be repaired and sold to HOME eligible buyers which would avoid the FWHFC repaying the federal grant funds. Director Jordan asked if the FWHFC gained any profit from the sale or would get money back and Mr. Folden responded that the FWHFC would receive the proceeds from the sale and those funds would become program income for the FWHFC. President Hicks questioned if the homes would be sold for more than the cost of repair and if those proceeds would come back to the FWHFC and Mr. Folden concurred. There being no further discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Jordan and seconded by Director Espino, the Board voted eight (8) "ayes" and zero (0) "nays", with Director Moncrief absent, approve Resolution No. FWHFC 2009-09. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Adopt Resolution Hiring a Real Estate Agent to Sell Properties at 2912 Walker Street; 4521 and 4525 Trueland Drive; 3100 and 3108 Eastcrest Court; 3220 Thrall Street; 1238 E. Jefferson Avenue; and 5221 Pinson Street (Agenda Item 5) Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department, addressed the Board regarding the proposed resolution. She stated that staff was asking that a real estate agent be hired to market the FWHFC properties and added staff would like to work with Southeast Fort Worth, Inc., for assistance on the selection of a realtor to get the properties on the market and sold quickly. President Hicks stated that she appreciated staff's work on trying to do deal with all the old CHDOs, but what she understood from her conversations with Mr. Chapa and Ms. Garcia, they would be focusing on each Council District in areas of concern where a lot of vacant properties were located. She added that the Council would receive a presentation today on this issue and she understood that staff had an overall plan to move forward in a positive manner. President Hicks opened the floor for further discussion on this issue. There being no further discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Espino and seconded by Director Scarth, the Board voted eight (8) "ayes" and zero (0) "nays", with Director Moncrief absent, approve Resolution No. FWHFC 2009-10. The motion carried. Adopt Resolution Approving Budget for the 2009-2010 Fiscal Year (Agenda Item 6) Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department advised the Board of the proposed budget in their packet regarding the proposed budget for October 1, 2009, through September 30, 2010 (unaudited), presented below: Revenues Interest on Investments $324,124.00 Program income prin. Loan $41,068.00 Land/home sales $222,727.00 Gas lease royalties $15,000.00 Misc. revenues $5,000.00 Total Revenues y567.Q20.00 CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED— SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Adopt Resolution Approving Budget for the 2009-2010 Fiscal Year (cont'd) (Agenda Item 6) Expenditures Salaries and benefits $17,249.00 Other Expenses Office Supplies $1,500.00 PC Lease $120.00 Postage $750.00 Conferences & Seminars $500.00 Inside printing $1,200.00 Graphics $600.00 Electricity $2,700.00 Water& waste disposal $1,480.00 Telephone $1,080.00 Mobile phone $900.00 Computing services $1,000.00 ESD Admin $750.00 Motor vehicle repair $1,200.00 Motor vehicle fuel $1,500.00 Dues and memberships $860.00 Contractual services $10,000.00 D&O Liability Insurance $2,050.00 Mowing HFC properties $45,990.00 Audit fees (VOE) $9,000.00 CHDO houses—acquisition/repairs $80,000.00 Security systems (HFC Houses) $503.00 Surveys and appraisals $5,000.00 Closing costs $5,000.00 Land Purchases $40,000.00 Subtotal $213,683.00 Total Expenditures $230,932.00 Excess (Deficiency) of Revenues over(under) Expenditures $336,988.00 President Hicks opened the floor for discussion on this issue. Director Espino requested that in the future, staff pro%ide a comparison of the actual hudgct from the pre%ious %car. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Adopt Resolution Approving Budget for the 2009-2010 Fiscal Year (cont'd) (Agenda Item 6) There being no further discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Scarth and seconded by Director Moss, the Board voted eight (8) "ayes" and zero (0) "nays", with Director Moncrief absent, approve Resolution No. FWHFC 2009-11. The motion carried. Executive Session (Agenda Item 7) President Hicks stated that she had been advised there was no need for an executive session to discuss the following items: A. Seek the advice of its attorneys concerning the following 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: (i) legal issues concerning any current agenda item; 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. Request for Future Agenda Items and/or Reports (Agenda Item 8) President Hicks opened the floor on requests for future agenda items. No requests were made by Board members. Adjourn (Agenda Item 9) With no further discussion, President Hicks adjourned the called — special session of the Fort Worth Housing Finance Corporation Board at 1:07 p.m. on Tuesday, September 1, 2009. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 3`d day of November, 2009. APPROVED: (� -, Kathleen Hicks President ATTEST: Frank Moss Secretary Prepared and respectfully submitted by: Ron Gonzales Assistant City Secretary