april board meeting to be held at the offices of texas ...apr 09, 2019 · inlanta mortgage, inc....

April Board Meeting To be held at the offices of

Texas State Affordable Housing Corporation 2200 East Martin Luther King Jr. Blvd.

Austin, TX 78702

Tuesday, April 9, 2019 10:30 a.m.

TEXAS STATE AFFORDABLE HOUSING CORPORATION BOARD MEETING

AGENDA

April 9, 2019 10:30 A.M.

2200 East Martin Luther King Jr. Blvd.

Austin, Texas 78702 CALL TO ORDER ROLL CALL Bill Dietz, Chair CERTIFICATION OF QUORUM Pledge of Allegiance – I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all. Texas Allegiance – Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible. 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: Quarterly Fundraising Report Tab D: Monthly Financial Reports

ACTION ITEMS IN OPEN MEETING: Tab 1 Presentation, Discussion and Possible Approval of Minutes of the Board Meeting held on February 13,

2019. Tab 2 Presentation, Discussion and Possible Approval of a Resolution to Restate, Ratify, and Affirm the Officers

of the Corporation, Appoint the person to Fill the Position of Corporate Secretary, and Designate and Restate the Signature and Approval Authority of Officers of the Corporation.

Tab 3 Presentation, Discussion and Possible Approval of a Resolution Regarding an Application for and the

Conversion of Reservation for Allocation of Private Activity Bonds to Mortgage Credit Certificates and Containing Other Matters Incident and Related Thereto.

Tab 4 Presentation, Discussion and Possible Approval of a Resolution Regarding the Submission of one or more

Applications for Allocation of Private Activity Bonds, Notices of Intention to Issue Bonds and State Bond Applications to the Texas Bond Review Board and Declaration of expectation to Reimburse Expenditures with Proceeds of Future Debt for the Pythian Manor.

Tab 5 Presentation, Discussion, and Possible Approval of a Resolution Approving a Loan from Frost Bank to the

Corporation in the Amount of $4,000,000 to support the Corporation’s homeownership programs and/or the Texas Housing Impact Fund; and Authorizing the President and Executive Vice President to Execute all Agreements and Documents Necessary to Implement such Loan.

Tab 6 Discussion of the 86th Texas Legislative Session. Tab 7 Closed Executive Session – Discussion of the duties and evaluation of the President of the Corporation

(Personnel Matters – Texas Government Code § 551.074).

Tab 8 Review, Discussion, and Possible action relating to the duties and evaluation of the President of the

Corporation. 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 ACTION ITEMS IN OPEN MEETING: Action in Open Meeting on Items Discussed in Closed Executive Session ANNOUNCEMENTS AND CLOSING COMMENTS ADJOURN: A Board member of the Corporation may participate in a Board meeting by video conference pursuant to Section 551.127 of the Texas Government Code. A quorum of the Board will meet at the Texas State Affordable Housing Corporation’s headquarters located at 2200 East Martin Luther King Jr. Blvd., Austin Texas, 78702. Individuals who require auxiliary aids or services for this meeting should contact Rebecca DeLeon, ADA Responsible Employee, at 512-220-1174 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

Homeownership Programs with Down Payment Assistance

January 1 to February 28, 2019

Month Closed # of Loans % Total At a Glance

January‐19 75,038,377$ 437 51.0% Average Annual Income $59,543

February‐19 72,100,428$ 416 49.0% Average Purchase Price $176,303

Totals $147,138,805 853 100% Average Loan Amount $172,496

Lender Closed # of Loans % Total Average Household Size 2

Everett Financial, dba Supreme Lending $19,462,558 112 13.2% Average Interest Rate 5.828%

Guild Mortgage Corporation $12,123,206 71 8.2% Program %

Fairway Independent Mortgage Corporation $9,607,567 59 6.5% Home Sweet Texas 85.93%

DHI Mortgage Company, Ltd. $7,738,267 35 5.3% Homes for Texas Heroes 14.07%

PrimeLending $6,873,015 41 4.7% Allied Health Faculty 0.00%

Cardinal Financial Company $4,374,795 26 3.0% Corrections Officer 0.82%

Cornerstone Home Lending, Inc. $3,992,221 22 2.7% County Jailer 0.12%

Academy Mortgage Corporation $3,265,264 20 2.2% EMS Personnel 0.47%

loanDepot.com LLC $3,221,399 16 2.2% Fire Fighter 0.82%

Nations Reliable Lending, LLC $3,158,148 19 2.1% Peace Officer 1.52%

SFMC, LP (Service First Mortgage) $3,082,131 16 2.1% Professional Nurse Faculty 1.06%

Stearns Lending, LLC $2,987,271 14 2.0% Public Security Officer 0.23%

Thrive Mortgage, LLC $2,972,430 18 2.0% School Counselor 0.12%

Movement Mortgage, LLC $2,883,084 18 2.0% School Librarian 0.00%

Crosscountry Mortgage, Inc. $2,779,738 15 1.9% School Nurse 0.00%

Cherry Creek Mortgage Co., Inc. $2,612,934 15 1.8% Teacher 6.57%

Southwest Funding, LP $2,531,698 15 1.7% Teacher Aide 0.47%

First Choice Loan Services, Inc. $1,929,028 9 1.3% Veteran 1.88%

Guaranteed Rate $1,882,797 12 1.3% New/Existing Home

AmCap Mortgage Limited $1,776,328 12 1.2% Existing 79.84%

Ark‐La‐Tex Financial (Benchmark Mtg.) $1,746,351 10 1.2% New 20.16%

FBC Mortgage LLC $1,715,307 11 1.2% Type of Loan

Highlands Residential Mortgage $1,636,953 10 1.1% Conventional ‐ Purchase 30.36%

NTFN, Inc. $1,584,826 10 1.1% FHA ‐ Purchase 67.64%

CMG Mortgage, Inc. dba CMG Financial $1,499,553 8 1.0% USDA‐RHS Purchase 0.00%

Hometrust Mortgage Company $1,352,125 8 0.9% VA ‐ Purchase 1.99%

DAS Acquisition Company, LLC $1,340,955 6 0.9% Ethnicity

LHM Financial Corp., dba CNN Mortgage $1,321,590 7 0.9% American Indian/Alaskan Native 0.12%

Primary Residential Mortgage, Inc. $1,267,115 9 0.9% Asian/Pacific Islander 1.41%

Gateway Mortgage Group, LLC $1,041,051 8 0.7% Black 10.90%

American Mortgage & Equity Consultants $1,019,028 7 0.7% Hispanic 39.86%

Mid America Mortgage, Inc. $976,910 6 0.7% Not Defined 8.09%

SWBC Mortgage Corporation $943,982 7 0.6% Other 2.46%

Hometown Lenders, Inc. $903,924 6 0.6% White 37.16%

Synergy One Lending, Inc. $881,757 5 0.6% Top 20 Originating Counties* # Households

American Pacific Mortgage Corporation $845,815 5 0.6% Harris 126

Amerifirst Financial, Inc. $845,603 5 0.6% Tarrant 103

Pulte Mortgage LLC $831,265 4 0.6% Dallas 88

Security National Mortgage Company $827,131 5 0.6% Bexar 59

Eagle Home Mortgage, LLC $825,066 4 0.6% Travis 24

Right Start Mortgage, Inc. $806,027 5 0.5% Denton 24

BancorpSouth Bank $803,042 4 0.5% Fort Bend 21

Certainty Home Loans, LLC $792,441 5 0.5% Collin 21

Mortgage Solutions of Colorado, LLC $789,549 4 0.5% Williamson 20

Envoy Mortgage $736,122 4 0.5% Midland 19

Wallick and Volk, Inc. $728,090 4 0.5% El Paso 19

First Bank $693,586 4 0.5% Galveston 19

Guaranteed Rate Affinity, LLC $689,129 4 0.5% HIdalgo 18

Union Home Mortgage $647,942 4 0.4% Johnson 17

Summit Funding, Inc. $643,100 3 0.4% Nueces 15

Mortgage Financial Services, LLC $640,913 4 0.4% Ector 14

Gardner Financial Services, Ltd. $592,913 4 0.4% McLennan 14

Gold Star Mortgage Financial Group $567,530 3 0.4% Bell 13

Independent Bank $566,057 3 0.4% Webb 11

First Continental Mortgage, Ltd. $556,061 2 0.4% Parker 10

Geneva Financial, LLC $555,737 3 0.4%

Network Funding, LP $534,055 3 0.4%

Nations Lending Corporation $523,246 4 0.4%

Interlinc Mortgage Services, LLC $520,300 3 0.4%

Michigan Mutual, Inc. $495,135 3 0.3%

*Top 20 of all counties statewide. All remaining

counties served 198 households combined.

Homeownership Programs with Down Payment Assistance


Republic State Mortgage Co. $467,867 3 0.3%

Pilgrim Mortgage, LLC $430,752 2 0.3%

New American Funding (Broker Solutions) $410,957 3 0.3%

Willow Bend Mortgage Company, LLC $408,464 3 0.3%

Sente Mortgage Inc. $408,464 2 0.3%

Happy State Bank $402,081 3 0.3%

America's Choice Home Loans, LP $399,627 2 0.3%

First Centennial Mortgage Corporation $397,664 2 0.3%

Churchill Mortgage Corporation $390,971 2 0.3%

Finance of America Mortgage, LLC $390,902 3 0.3%

Commerce Home Mortgage, Inc. $379,596 2 0.3%

KBHS Home Loan, LLC $377,529 2 0.3%

Infinity Mortgage Holdings, LLC $334,162 2 0.2%

Directions Equity, LLC $311,257 2 0.2%

Wells Fargo Bank, N.A. $303,550 2 0.2%

Patriot Mortgage Company $273,454 2 0.2%

HomeBridge Financial Services $270,571 2 0.2%

Aim Bank $260,533 2 0.2%

First National Bank Mortgage $257,253 2 0.2%

University Lending Group, LLC $251,362 2 0.2%

Legacy Mortgage, LLC $246,775 2 0.2%

GoPrime Mortgage $240,070 2 0.2%

University Federal Credit Union $237,650 1 0.2%

Goldwater Bank, N.A. $236,143 2 0.2%

Inlanta Mortgage, Inc. $222,888 1 0.2%

CLM Mortgage, LLC $208,540 1 0.1%

Planet Home Lending, LLC $196,377 1 0.1%

Affiliated Bank $190,120 1 0.1%

American Financial Network, Inc. $189,504 1 0.1%

First Community Mortgage $187,387 2 0.1%

Trinity Oaks Mortgage $186,558 1 0.1%

Texas Bank Mortgage Company $186,558 1 0.1%

LeaderOne Financial $186,558 1 0.1%

Moria Development/Peoples Mortgage Co $186,409 1 0.1%

Inspire Home Loans, Inc. $186,155 1 0.1%

Citywide Home Loans, a Utah Corporation $178,703 1 0.1%

Great Western Financial Services, Inc. $173,050 1 0.1%

Residential Wholesale Mortgage, Inc. $156,120 1 0.1%

Rocky Mountain Mortgage Company $155,579 1 0.1%

Branch Banking and Trust Company $151,320 1 0.1%

Colonial Savings, F.A. $148,410 1 0.1%

Homevantage Mortgage $117,826 1 0.1%

Finance Home America $113,898 1 0.1%

Bank of England $97,206 1 0.1%

American Bank, N.A. $90,824 1 0.1%

Grand Total $147,138,805 853 100%

Mortgage Credit Certificate Program


Month Closed # of Loans % Total At a Glance

Jan 17,570,739$ 102 47% Total Amount Originated $37,342,261

Feb 19,771,522$ 113 53% Average Annual Income $53,044

Totals $37,342,261 215 100% Average Purchase Price $182,220

Average Loan Amount $173,685

Lender Closed # of Loans % Total Average Household Size 2

Everett Financial, dba Supreme Lending $5,932,931 35 16.3% Average Interest Rate 5.503%

Guild Mortgage Corporation $2,558,413 16 7.4% Program %

Thrive Mortgage, LLC $2,308,203 13 6.0% Home Sweet Texas 82.33%

Fairway Independent Mortgage Corporation $1,842,793 11 5.1% Homes for Texas Heroes 17.67%

Cardinal Financial Company $1,379,875 7 3.3% Allied Health Faculty 0.00%

Movement Mortgage, LLC $1,213,759 7 3.3% Corrections Officer 0.00%

SFMC, LP (Service First Mortgage) $1,129,674 6 2.8% County Jailer 0.00%

Nations Reliable Lending, LLC $1,007,410 5 2.3% EMS Personnel 1.40%

Stearns Lending, LLC $957,520 4 1.9% Fire Fighter 0.93%

First Choice Loan Services, Inc. $883,740 4 1.9% Peace Officer 2.33%

Cornerstone Home Lending, Inc. $863,617 5 2.3% Professional Nurse Faculty 1.40%

New American Funding (Broker Solutions) $795,119 4 1.9% Public Security Officer 0.00%

CLM Mortgage, LLC $713,503 3 1.4% School Counselor 0.47%

PrimeLending $672,482 4 1.9% School Librarian 0.00%

Crosscountry Mortgage, Inc. $647,332 4 1.9% School Nurse 0.00%

Texas Bank Mortgage Company $644,930 4 1.9% Teacher 0.00%

Southwest Funding, LP $641,380 4 1.9% Teacher Aide 9.77%

CMG Mortgage, Inc. dba CMG Financial $573,193 3 1.4% Veteran 1.40%

Gateway Mortgage Group, LLC $550,995 3 1.4% New/Existing Home

Gold Star Mortgage Financial Group $542,227 3 1.4% Existing 79.07%

Certainty Home Loans, LLC $501,835 3 1.4% New 20.93%

loanDepot.com LLC $498,159 3 1.4% Type of Loan

Guaranteed Rate $468,963 3 1.4% Conventional ‐ Purchase 46.51%

Hometown Lenders, Inc. $462,370 3 1.4% FHA ‐ Purchase 50.23%

American Mortgage & Equity Consultants $462,273 3 1.4% USDA‐RHS Purchase 1.40%

Mid America Mortgage, Inc. $458,175 3 1.4% VA ‐ Purchase 1.86%

First Continental Mortgage, Ltd. $443,910 2 0.9% Ethnicity

Colonial Savings, F.A. $436,500 2 0.9% American Indian/Alaskan Native 0.32%

Highlands Residential Mortgage $426,390 3 1.4% Asian/Pac Isle 5.36%

Nations Lending Corporation $370,331 2 0.9% Black 11.41%

American Financial Network, Inc. $365,162 2 0.9% Hispanic 38.86%

Geneva Financial, LLC $353,374 2 0.9% Not Defined 4.89%

Primary Residential Mortgage, Inc. $350,727 2 0.9% Other 1.24%

Republic State Mortgage Co. $347,095 2 0.9% White 37.93%

Hometrust Mortgage Company $319,466 2 0.9% Top 20 Originating Counties* # of Loans

Town Square Mortgage & Investments, Inc. $317,149 2 0.9% Harris 36

SWBC Mortgage Corporation $306,811 2 0.9% Tarrant 27

Infinity Mortgage Holdings, LLC $248,440 2 0.9% Dallas 26

Pilgrim Mortgage, LLC $239,284 1 0.5% Travis 14

University Federal Credit Union $237,650 1 0.5% Bexar 13

Summit Funding, Inc. $226,816 1 0.5% Williamson 12

KBHS Home Loan, LLC $207,565 1 0.5% Denton 10

AmCap Mortgage Limited $203,250 1 0.5% Fort Bend 5

Bank of America, N.A. $201,286 1 0.5% Johnson 5

BancorpSouth Bank $198,242 1 0.5% Collin 5

Bank of England $190,898 1 0.5% Hays 5

Independent Bank $186,459 1 0.5% HIdalgo 4

Moria Development/Peoples Mortgage Co $186,409 1 0.5% Nueces 3

DHI Mortgage Company, Ltd. $177,679 1 0.5% Hunt 3

Wallick and Volk, Inc. $174,775 1 0.5% Montgomery 3

Guaranteed Rate Affinity, LLC $173,500 1 0.5% El Paso 3

Ark‐La‐Tex Financial (Benchmark Mtg.) $169,100 1 0.5% Ellis 3

Interlinc Mortgage Services, LLC $162,011 1 0.5% Galveston 3

American Pacific Mortgage Corporation $157,102 1 0.5% Webb 2

Amerifirst Financial, Inc. $154,230 1 0.5% Anderson 2

Churchill Mortgage Corporation $145,500 1 0.5%

Brazos National Bank $142,590 1 0.5%

Open Mortgage LLC $137,750 1 0.5%

*Top 20 of all counties statewide. All remaining

counties served 31 households.

Mortgage Credit Certificate Program


Affiliated Bank $137,365 1 0.5%

Network Funding, LP $128,250 1 0.5%

Legacy Mortgage, LLC $126,003 1 0.5%

On Q Financial, Inc. $82,323 1 0.5%

Origin Bank $80,000 1 0.5%

NTFN, Inc. $77,600 1 0.5%

Synergy One Lending, Inc. $42,398 1 0.5%

Total Committed $37,342,261 215 100%

Texas State Affordable Housing Corporation Development Finance Programs Report

April 2019

Affordable Communities of Texas Program (ACT)

NSP and ACT housing development and sales were active in the Rio Grande Valley this past month. Staff completed six NSP home sales with local partners Community Development Corporation of Brownsville (“CDCB”) and Affordable Homes of South Texas, Inc. (“AHSTI). Staff also completed one ACT home sale at the Park Meadows subdivision in Harlingen with local partner Harlingen Community Development Corporation (“HCDC”). In early April, staff traveled to the Rio Grande Valley to visit AHSTI, CDCB and HCDC and tour NSP subdivisions. Staff is in the process of accepting five donated lots located at the Yaupon Cove community in Onalaska, Texas and anticipate the transaction to be complete by early April. Legacy CDC, an established local partner, has expressed interest in building out of these lots for the purpose of homeownership housing. Staff is in the process of acquiring a single family home, located at 1418 Navidad Street in San Antonio, made available through the National Community Stabilization Trust. The contract includes seller concessions that will cover the majority of the acquisition costs. Here is a summary of the past month’s portfolio activity:

Program Portfolio as of Mar. 1, 2019

Acquired Sold Portfolio as of Apr. 1, 2019

Current Portfolio Value

ACT Land Bank 48 0 1 47 $473,739.00

ACT Land Trust 1 0 0 1 $650,000.00

Texas NSP 184 0 6 178 $2,432,764.78

Veteran's Initiative 1 0 0 1 $33,210.00

Totals 234 0 7 227 $3,589,713.78

Our current pipeline report has 11 homes under contract with eligible buyers, 18 homes listed for sale, 11 homes under construction and 26 properties in predevelopment.

Texas Housing Impact Fund

Staff is continuing to review application materials from Fifth Ward CRC in Houston, but is not ready to bring the final project summary and recommendation to loan committee or the Board. This loan is planned to be supported through a new and expanded program related investment from Texas Capital Bank, and staff is taking additional time to ensure that both sides of the financing are appropriate for the Corporation. Multifamily Bond Program

This month the Board will review and consider approval of a resolution to induce bonds for the Pythian Manor Apartments. The project involves the acquisition and rehabilitation of a 76‐unit senior housing property in Dallas. The developer, Steele Properties, has completed two other bond transactions with the Corporation, the Brooks Manor Apartments in West Columbia, and the Peoples El Shaddai and St. James Manor Apartments in Dallas. A complete board write‐up is included in this month’s agenda.

Funder Amount Status Notes

BBVA Compass $5,000 Received Received in November 2018 for 2019 Housing Connection workshop

Housing Connection Sponsorships $12,000 Received Online donations received June 2018‐March 2019 to support Housing Connection workshops

Wells Fargo Housing Foundation $15,000 Received Received in November 2018 for 2019 Housing Connection workshop

Insperity $5,000 Received Received in March 2019 for 2019 Housing Connection workshop

JPMorgan Chase $30,000 Awarded Awarded in March 2019 for 2019 Housing Connection workshop

Federal Reserve Bank of Dallas $5,000 Awarded In Kind donation of event space and food for 2019 Housing Connection workshop

Frost Bank $5,000 Pending Requested in February 2019 for 2019 Housing Connection workshop

Comerica Bank $5,000 Pending Requested in March 2019 for 2019 Housing Connection workshop

Amon Carter Foundation $10,000 Declined Requested in September 2018 for 2019 Housing Connection workshop

Bank of America $10,000 Declined Requested in June 2018 for 2019 Housing Connection workshop

Total Received/Awarded $72,000

Total Requests Pending $10,000


Rebuild Texas Fund $500,000 Received Awarded in March 2018 to support the HEART Program

Meadows Foundation $100,000 Received Awarded in June 2018 to support HEART Program

Center for Disaster Philanthropy $50,000 Awarded

Awarded in July 2018 as pass‐through funding as part of a larger grant submitted by Enterprise Community

Partners to support the HEART Program

Rebuild Texas Fund $500,000 Pending Submitted a follow up proposal in March 2019 to continue the HEART Program

Total Awarded/Received $650,000

Total Requests Pending $500,000


Texas Capital Bank $750,000 Received Structured as a five year community development loan to be used for the Texas Housing Impact Fund

Texas Capital Bank $7,500 Received

Grant to support Texas Housing Impact Fund. 3‐year grant totaling $22,500, with $7,500 received in 2017,

$7,500 in 2018, and another $7,500 to be received in 2019

Austin Community Foundation $250,000 Received

Structured as a three year Program‐Related Investment to be used for the Texas Housing Impact Fund to

support the AHA! at Briarcliff project

Texas State Affordable Housing Corporation

2019 Quarterly Fundraising Report

Housing Connection Training Workshops

Housing and Economic Assistance to Rebuild Texas (HEART) Program

Texas Housing Impact Fund

March 22, 2019

1

Frost Bank $4,000,000 Received

A community development loan initially awarded to fund down payment assistance for TSAHC's home buyer

programs. In December 2018, Frost Bank granted TSAHC a one‐year extension and expanded the loan purpose

to include the Texas Housing Impact Fund.

Capital Magnet Fund $3,750,000 Awarded

Awarded in February 2019 to support rental housing developments financed through the Texas Housing Impact

Fund

Texas Capital Bank $500,000 Discussion Initiated discussion in July 2018 to increase current investment by $500,000

Texas Capital Bank $2,000,000 Discussion

Initiated discussion in February 2019 to provide additional investment to TSAHC to support a line of credit for a

local developer in Houston

Total Received/Awarded $8,757,500

Total Requests Under Discussion $2,500,000


Lowes $2,000 Declined Submitted request in March 2018 for a gift card to purchase appliances for an ACT property in Wichita Falls

JCPenney $2,000 Withdrawn

Submitted a request for discounted gift cards to purchase appliance for an ACT property in Wichita Falls. TSAHC

was awarded a 6% discount on gift cards, but staff determined the award was not financially feasible, so it was

declined.

Good360 TBD Pending (In‐Kind)

Completed application to request appliances for ACT properties. No appliances are currently available, but we

continue to monitor on a monthly basis for potential appliance donations.

Texas Community Bank $500,000 Discussion

Have initiated discussion to renew EQ2 investment, which is due in May 2020. Based on preliminary

conversations with Texas Community Bank staff, we believe they will approve the renewal.

Whirlpool $2,000 Declined Submitted request for in kind donation of appliances for an ACT property in Wichita Falls

Total Requests Under Discussion $500,000

Total Received/Awarded $9,479,500

Total Pending $510,000

Total Under Discussion $3,000,000

Summary

Affordable Communities of Texas (ACT) Program

2

TEXAS STATE AFFORDABLE HOUSING CORPORATION

STATEMENT OF NET ASSETS (unaudited)

As of February 28, 2019

ASSETS

Current Assets

Cash and Cash Equivalents $ 12,714,629

Restricted Assets Held by Bond Trustee:

Cash and Cash Equivalents 1,505,916

Accrued Interest 45,472

Custodial Cash and Cash Equivalents 140,421 Investments, at Fair Market Value 9,040,273

Accounts Receivable & Accrued Revenue 25,332

Accrued Interest Receivable 65,240

Loans Receivable, Current Portion 69,699

Notes Receivable, Current Portion 599,515

Down Payment Assistance 482,715

Prepaid Expenses 67,857

Total Current Assets: 24,757,069

Noncurrent Assets

Loans Receivable, Net of uncollectible amounts of $4,834 465,388 Notes Receivable, Net Allowance for Loss of $500,000 3,272,669 Investments, at Fair Market Value 3,736,025 Mortgage Servicing Rights, Net of Accumulated Amortization of $2,511,216 216,845 Fixed Assets, Net of Accumulated Depreciation of $799,981 1,251,506 Owned Real Estate, Federal & Other Programs Net of Amort $622,788 11,520,877 Restricted Investments Held by Bond Trustee, at Fair Market Value 28,938,680

Total Noncurrent Assets: 49,401,990

TOTAL ASSETS $ 74,159,059

(continued)


STATEMENT OF NET ASSETS - Continued (unaudited)

As of February 28, 2019

LIABILITIES

Current Liabilities

Accounts Payable and Accrued Expenses $ 323,247

Notes Payable, Current Portion 52,862

Custodial Reserve Funds 140,421

Due to Federal Programs 1,946,507

Other Current Liabilities 156,480

Payable from Restricted Assets Held by Bond Trustee:

Bonds Payable, Current Portion 750,000

Accrued Interest on Bonds 452,811

Total Current Liabilities: 3,822,328

Noncurrent Liabilities

Notes Payable 2,659,060

Revenue Bonds Payable 27,048,300

Unearned Revenue 305,128

Total Noncurrent Liabilities: 30,012,488

Total Liabilities: 33,834,816

DEFERRED INFLOWS OF RESOURCES

Deferred Revenue 184,492

Total Deferred Inflows of Resources 184,492

NET POSITION

Invested in Capital Assets 1,251,506

Restricted for:

Debt Service 2,238,956

Other Purposes 166,771

Unrestricted 36,482,518

Total Net Position: $ 40,139,751


STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (unaudited)

for the 6 months ending February 28, 2019

Operating Revenues

Interest and Investment Income $ 1,042,974

Net Increase (Decrease) in Fair Value of Investments (213,053)

Single Family Income 2,933,047

Asset Oversight and Compliance Fees 131,667

Rental Program Income 258,112

Multifamily Income 189,671

Land Bank Income 148,928

Public Support

Federal & State Grants 8,598

Contributions 31,911

Other Operating Revenue 34,769

Total Operating Revenues $ 4,566,624

Operating Expenses

Interest Expense on Bonds and Notes Payable $ 503,215

Salaries, Wages and Payroll Related Costs 1,380,457

Professional Fees and Services 160,488

Amortization 103,386

Office and Equipment Rental and Maintenance 49,996

Travel and Meals 50,244

Depreciation 125,800

Program and Loan Administration 196,548

Grant Expenditures 8,603

Foundation Fund/Rebuild Texas Grants 443,800

Other Operating Expenses 187,294

Total Operating Expenses $ 3,209,831

Net Income 1,356,793

Total Net Position, Beginning 38,782,958

Total Net Position, Ending $ 40,139,751


Budget Report

February 28, 2019

Annual

Budget Actual

Percent of

Annual

Budget Reference

Revenue

Servicing Revenue 128,000 62,191 49%

Single Family 9,550,000 4,427,890 46%

Multifamily Program Revenue 764,000 507,728 66%

Lending Program Revenue 2,720,000 2,458,079 90% j

ACT/THIF Program Revenue 200,000 77,461 39%

Grants & Donations 720,000 281,911 39%

Federal & State Grants 151,000 76,066 50%

Tenant Rent Revenue 513,000 258,292 50%

Investment Revenue 1,140,000 1,360,204 119% k

Total Revenue 15,886,000 9,509,822 60%

Expenditures

Salaries & Payroll Related Expenditures 2,935,000 1,387,481 47%

Program Expenditures 10,491,000 3,015,969 29%

HEART Program & Foundation Fund Grants 950,000 418,800 44%

Professional Services 451,000 166,890 37%

Principal & Interest on Notes Payable 159,000 71,835 45%

Marketing 152,000 80,919 53%

Insurance 120,000 61,048 51%

Travel & Meals 125,000 50,244 40%

Furniture, Equipment & Software 31,000 14,191 46%

Building Maintenance 72,000 22,804 32%

Professional Dues, Conferences & Training 43,000 19,155 45%

Bank Fees & Charges 20,000 5,590 28%

Sponsorships 20,000 13,350 67%

Communication 15,000 7,251 48%

Printing & Office Supplies 4,000 3,116 78% l

Publications, Subscriptions & Office Exp. 18,000 10,484 58%

Freight, Delivery & Postage 9,000 6,194 69%

15,615,000 5,355,321 34%

Net Income 271,000 4,154,501 1533%

Average Expected Percent Received/Expended = 50%


Budget Report

February 28, 2019

Explanation of Variances

j The budget overage for Lending Program Revenue relates exclusively to the timing of the repayment

of the Chicon Note Receivable. Of the $2.7 million budgeted $2 million relates to the Chicon note

receivable. By the end of February the Corporation had been repaid the full $2 million loaned.

We anticipate that this line item will be on target by year end.

k Investment revenue is over budget due the prepayment of mortgages within the pools making

up the Corporation's mortgage backed securities investments. While we make every effort to

estimate the number and amount of prepayments, it is not possible to predict this activity with

certainty. During the period September 1, 2018 through February 28, 2019 the Corporation

collected loan prepayments totaling $1,033,755.

l Expenditures for printing and supplies are over budget due to the bulk purchase of stationary

and program brochures which will be used throughout the year. We anticipate that this line

item will be on target by year end.

BOARD MEETING TEXAS STATE AFFORDABLE HOUSING CORPORATION

Held at the offices of Texas State Affordable Housing Corporation

2200 E. Martin Luther King Jr. Blvd. Austin, TX 78702

February 13, 2019 at 10:30 a.m.

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 Bill Dietz, Chair, at 10:31 a.m., on February 13, 2019, 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 Bill Dietz, Chair Jerry Romero, Vice Chair Lori Cobos, Member Bob Jones, Member Valerie Cardenas, Member Staff Present Betsy Aldrich, Senior Accounting Manager Cassandra Ramirez, Specialist, Development Finance Cynthia Gonzales, Senior Office and Loan Servicing Manager Dave Danenfelzer, Senior Director, Development Finance David Long, President Donnetta McGrew, Specialist, Single Family Compliance James Matias, Senior Manager, Asset Oversight and Compliance Janie Taylor, Executive Vice President Joniel Crim, Director, Homeownership Programs Katie Claflin, Director, Communications and Development Laura Ross, Manager, Communications and Development Melinda Smith, Chief Financial Officer Michael Wilt, Manager, External Relations Nick Lawrence, Controller

Guests Ryan Bowen, Chapman and Cutler, LLP William L. Gehrig, Greenberg Traurig, LLP Karen Kennard, Greenberg Traurig, LLP Claire Merritt, Hilltop Securities Tim Nelson, Hilltop Securities Michael Marz, Hilltop Securities Robert D. Dransfield, Norton Rose Fulbright Chris Spelbring, Raymond James Braxton Parsons, Texas Bond Review Board Monica Galuski, Texas Department of Housing and Community Affairs Public Comment No public comment was given. President’s Report Mr. Long presented the President’s Report. See page 4 in the official transcript. Tab 1 Presentation, Discussion and Possible Approval of Minutes of the Board

Meeting held on January 10, 2019. Mr. Romero made a motion to approve the minutes of the Board meeting held on January 10, 2019. Mr. Jones seconded the motion. Mr. Dietz asked for public comment and none was given. A vote was taken and the motion passed unanimously. See page 11 in the official transcript. Tab 2 Presentation, Discussion and Possible Approval of the Texas State

Affordable Housing Corporation’s 2019 Annual Action Plan. Presented by Mr. Wilt. Mr. Jones made a motion to approve the Texas State Affordable Housing Corporation’s 2019 Annual Action Plan. Mr. Romero seconded the motion. Mr. Dietz asked for public comment and none was given. A vote was taken and the motion passed unanimously. See page 12 in the official transcript. Tab 3 Presentation, Discussion and Possible Approval of a Resolution Approving a

Master Servicing and Sale Agreement (Relating to Bond-Financed Programs), a Master Mortgage Origination Agreement and an Amendment to Master Mortgage Origination Agreement Relating to Bond-Financed Single Family Loan Programs; and Containing Other Matters Incident and Related Thereto.

Ms. Crim introduced Bob Dransfield from Norton Rose Fulbright, the Corporation’s bond counsel. Mr. Dransfield presented this item. Mr. Romero made a motion to approve the master servicing and sale agreement related to bond finance, a master mortgage origination agreement and an amendment to master mortgage origination agreement relating to bond-financed single family loan programs, and other matters incident and related thereto. Mr. Jones seconded the motion. Mr. Dietz asked for public comment and none was given. A vote was taken and the motion passed unanimously. See page 15 in the official transcript. Tab 4 Presentation, Discussion and Possible Approval of a Resolution Authorizing

the Issuance, Sale and Delivery of the Texas State Affordable Housing Corporation’s Single Family Mortgage Revenue Bonds (Texas Heroes Home Loan Program) Series 2019A (Non-AMT); Authorizing a Trust Indenture, Official Statement, Bond Purchase Agreement and Continuing Disclosure Agreement Relating to Such Bonds, Making Certain Findings and Determinations; Authorizing the Execution of Documents and Instruments Necessary or Convenient to Carry Out the Texas State Affordable Housing Corporation Texas Heroes Home Loan Program Relating to Such Bonds; and Containing Other Matters Incident and Related Thereto.

Ms. Crim introduced Tim Nelson, from Hilltop Securities, who presented this item. Mr. Jones moved to approve a resolution authorizing the issuance, sale and delivery of Texas State Affordable Housing Corporation’s Single Family Mortgage Revenue Bonds for the Texas Heroes Home Loan Program, Series 2019A (Non-AMT); authorizing a trust indenture, official statement, bond purchase agreement and continuing disclosure agreement relating to such bonds, making certain findings and determinations; authorizing the execution of documents and instruments necessary or convenient to carry out the Texas State Affordable Housing Corporation Texas Heroes Home Loan Program relating to such bonds; and containing other matters incident and related thereto. Ms. Cobos seconded the motion. Mr. Dietz asked for public comment and none was given. A vote was taken and the motion passed unanimously. See page 25 in the official transcript. Tab 5 Discussion of the 86th Texas Legislative Session. Presented by Mr. Wilt. See page 38 in the official transcript. Tab 6 Closed Executive Session – Discussion regarding the Evaluation and Annual

Performance Review of the President of the Corporation (Personnel Matters – Texas Government Code § 551.074).

The Board met in closed executive session to discuss personnel matters, as covered under Texas Government Code 551.074. See page 49 in the official transcript. Tab 7 Review, Discussion and Possible Approval of the Annual Performance

Review of the President of the Corporation and related actions.

Mr. Jones made a motion to approve the annual performance review of the president of the Corporation and related actions, including adjustments to annual salary. Ms. Cardenas seconded the motion. Mr. Dietz asked for public comment and none was given. A vote was taken and the motion passed unanimously. See page 50 in the official transcript. Mr. Long recognized Mr. Jones for his service on the Board. Mr. Dietz read a note from Governor Abbott in appreciation of Mr. Jones’ service to the Board. Adjournment Mr. Long and Board Members tentatively scheduled the next Board Meeting for March 14, 2019. Mr. Dietz adjourned the meeting at 1:12 p.m. Respectfully submitted by________________________________________________ Cynthia Gonzales, Assistant Corporate Secretary

#42658347v3

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 April 9, 2019, at the Corporation’s offices in Austin, Texas, and the roll was called of the duly constituted members of said Board, who are as follows:

Name Office

William H. Dietz Chairperson Jerry Romero Vice-Chair Valerie Cardenas Director Lori Cobos Director Robert Elliott Jones Director

2. The officers of the Corporation (who are not Board members) are as follows:

Name Office David Long President Janie Taylor Executive Vice President Melinda Smith Chief Financial Officer and Treasurer Cynthia Gonzales Assistant Secretary

All Board members were present except , thus constituting a quorum. All of the officers of the Corporation were present at the meeting.

3. Whereupon, among other business, the following written resolution (the “Resolution”) bearing the following caption:

RESOLUTION NO. 19-__


“A RESOLUTION TO RESTATE, RATIFY, AND AFFIRM THE OFFICERS OF THE CORPORATION, APPOINT THE PERSON TO FILL THE POSITION OF CORPORATE SECRETARY,

2

AND DESIGNATE AND RESTATE THE SIGNATURE AND APPROVAL AUTHORITY OF OFFICERS OF THE CORPORATION”

was duly introduced for the consideration of the 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 prevailed and was carried by the following vote:

AYES NOES ABSTENTIONS

4. That a true, full and correct copy of the Resolution adopted at the meeting described in the above is attached to this certificate; that the adoption of the Resolution will be duly recorded in the Board’s minutes of the meeting; that the persons named above are the duly chosen, qualified and acting members of the Board and the officers of the Corporation as indicated; that each member 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.

SIGNED this __th day of April, 2019.

Cynthia Gonzales, Assistant Secretary Texas State Affordable Housing Corporation

RESOLUTION NUMBER 19-__


A RESOLUTION TO RESTATE, RATIFY, AND AFFIRM THE OFFICERS OF THE CORPORATION, APPOINT THE PERSON TO FILL THE POSITION OF CORPORATE SECRETARY, AND DESIGNATE AND RESTATE THE SIGNATURE AND APPROVAL AUTHORITY OF OFFICERS OF THE CORPORATION

WHEREAS, the Texas State Affordable Housing Corporation (the “Corporation”) 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, upon the recommendation of David Long, President of the Corporation, the Corporation has appointed Rebecca DeLeon as the Secretary of the Corporation, effective April 9, 2019 (immediately following Board approval); and

WHEREAS, effective implementation and execution of the Corporation’s programs, operations and various task forces require that persons employed by the Corporation as Officers be empowered to approve and execute documents pursuant to the authority given such Officers as provided in the relevant resolutions passed or to be passed by the Board with respect to the Corporation’s programs, operations and various task forces;

NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TEXAS STATE AFFORDABLE HOUSING CORPORATION THAT:

RESOLVED, the Board hereby ratifies, affirms, appoints, and restates, the following persons as the officers of the Corporation:

President David Long Executive Vice President Janie Taylor Chief Financial Officer and Treasurer Melinda Smith Secretary Rebecca DeLeon Assistant Secretary Cynthia Gonzales

RESOLVED, that the Board hereby authorizes David Long, as President of the Corporation, to execute and deliver, on behalf of the Corporation, any and all documents or instruments necessary to carry out his functions as President, including without limitation, any and all documents and instruments relating to the Corporation’s programs (including bond administration), operations and task forces.

RESOLVED, that the Board hereby authorizes Janie Taylor, as Executive Vice President of the Corporation, to execute and deliver, on behalf of the Corporation, any and all documents or instruments necessary to carry out her functions as Executive Vice President.

RESOLVED, that the Board hereby authorizes Melinda Smith, as Chief Financial Officer and Treasurer of the Corporation, to execute and deliver, on behalf of the Corporation, any and all documents or instruments necessary to carry out her functions as Chief Financial Officer and Treasurer.

RESOLVED, that the Board hereby authorizes Rebecca DeLeon, as Secretary of the Corporation, and Cynthia Gonzales as Assistant Secretary of the Corporation, to execute and deliver, on behalf of the Corporation, any and all documents or instruments necessary to carry out their respective functions as Secretary and Assistant Secretary of the Corporation.

Effective Date. This Resolution shall be in full force and effect from and after the date of its adoption.

ALL MATTERS ABOVE ARE APPROVED AND EFFECTIVE this ____ day of APRIL, 2019.

______________________________________ William H. Dietz, Chairperson

Texas State Affordable Housing Corporation ATTEST: __________________________________ Cynthia Gonzales Assistant Secretary of the Corporation

71723933.2/1000227032

MINUTES AND CERTIFICATION

THE STATE OF TEXAS § § TEXAS STATE AFFORDABLE § HOUSING CORPORATION §

I, the undersigned officer of the Texas State Affordable Housing Corporation, do hereby

certify as follows:

1. The Board of Directors of said corporation convened on April 9, 2019, at its regular meeting place in Austin, Texas, and roll was called of the duly constituted members of said Board, to wit:

BOARD OF DIRECTORS

Name

Office

William H. Dietz Chairperson Jerry Romero Vice Chairperson Robert Elliott Jones Director Valerie V. Cardenas Director Lori Cobos Director

and all of said persons 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 was introduced:

RESOLUTION NO. 19-____


RESOLUTION Regarding an Application for and the Conversion of Reservation for Allocation of Private Activity Bonds to Mortgage Credit Certificates and Containing Other Matters Incident and Related Thereto

was duly introduced for the consideration of said Board. It was duly moved and seconded that said Resolution be adopted; and, after due discussion, said motion was adopted by the following vote:


2. That a true, full and correct copy of the aforesaid Resolution adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that said Resolution has been duly recorded in said Board’s minutes of said meeting; that the above and foregoing paragraph is a true, full and correct excerpt from said Board’s minutes of said meeting pertaining to the adoption of said Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of said Board as indicated therein; that each of the officers and members of said Board was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of the aforesaid meeting, and that said 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.

71723933.2/1000227032 2

SIGNED this April 9, 2019.

Secretary, Texas State Affordable Housing Corporation

71723933.2/1000227032

RESOLUTION NO. 19-____


RESOLUTION Regarding an Application for and the Conversion of Reservation for Allocation of Private Activity Bonds to Mortgage Credit Certificates and Containing Other Matters Incident and Related Thereto

WHEREAS, the Board of Directors of the Texas State Affordable Housing Corporation (the “Corporation”) has heretofore received a certificate of reservation relating to 2018 volume allocation for qualified mortgage bonds totaling $700,000,000 and the Corporation has elected a carryforward of the aforesaid volume allocation in accordance with applicable federal and state law;

WHEREAS, the 2018 volume allocation that has been carried forward (the “2018 Carryforward Allocation”) may be used in connection with any of the qualified mortgage bond or mortgage credit certificate programs the Corporation is authorized to provide;

WHEREAS, the Corporation has authorized the use of the following amount of the 2018 Carryforward Allocation: $41,743,027.25 for the Corporation’s Single Family Mortgage Revenue Bonds (Texas Heroes Home Loan Program) Series 2019A (Non-AMT);

WHEREAS, the Board of Directors of the Texas State Affordable Housing Corporation (the “Corporation”) desires to submit an Application for Allocation of Private Activity Bonds (the “Application”) to apply for a reservation of the remaining $658,256,972.75 of the 2018 Carryforward Allocation to be converted to mortgage credit certificates; and

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE TEXAS STATE AFFORDABLE HOUSING CORPORATION:

Section 1. That any officer of the Corporation is authorized and directed to execute and deliver to the Texas Bond Review Board the Application and any related certificates or documents to apply for the remaining $658,256,972.75 of 2018 Carryforward Allocation for qualified mortgage revenue bonds to be converted to mortgage credit certificates.

Section 2. That the Corporation hereby elects to convert $658,256,972.75 of the 2018 Carryforward Allocation for qualified mortgage bonds to volume allocation for mortgage credit certificates.

Section 3. That any officer of the Corporation is authorized and directed to execute and deliver any certificates and documents relating to the mortgage credit certificates and to take other actions deemed necessary or appropriate to implement a mortgage credit certificate program.

Section 4. That the publication of the notice required in connection with mortgage credit certificates is hereby in all things ratified and confirmed.

Section 5. 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.

71723933.2/1000227032 2

Section 6. That this Resolution shall be in full force and effect from and upon its adoption.

PASSED, APPROVED AND EFFECTIVE this April 9, 2019.


* * * * * * * * * * * * * * * * * * * * * * * * * * * *


Page 1 of 2

Agenda Item:

Presentation, Discussion and Possible Approval of a Resolution Regarding the Submission of one or more Applications for Allocation of Private Activity Bonds, Notices of Intention to Issue Bonds and State Bond Applications to the Texas Bond Review Board and Declaration of Expectation to Reimburse Expenditures with Proceeds of Future Debt for the Pythian Manor Apartments.

Summary:

The Corporation received an application from Steele Properties III, LLC (Steele Properties) in March 2019 for the issuance of Multifamily Private Activity Bonds for the Pythian Manor Apartments project, located at 2719 East Illinois Ave in Dallas, Texas. The project includes the acquisition of a 76‐unit multifamily housing complex that is nearing the end of its current housing assistance contract. The Corporation’s Board is being asked to approve the attached inducement resolution and provide staff with the authority to move forward with public hearings, draft bond documents and other steps to move the transaction forward.

Public Benefit:

The proposed project fulfills the Corporation’s targeted housing need as an At‐Risk Preservation and Rehabilitation of Existing Affordable Units development. The applicant is also proposing to add eight income restricted units for households earning 30% or less than the area median income.

Financial Summary:

The proposed acquisition and rehabilitation of Pythian Manor Apartments has a budget of approximately $12 million. The proposed financing leverages tax‐exempt bonds and 4% housing tax credits under a fairly typical financing structure. Approximately $5.75 million will be used for acquisition costs, while renovation costs are estimated at $2.95 million or $38,907 per unit. Financing costs, soft costs, developer fees and reserves account for the remaining $3.35 million in total costs. The total bond amount is anticipated to be $7.9 million. The full amount of the bonds proceeds will be used for acquisition and construction activities. The bonds will be privately placed through Redstone Capital at a proposed interest rate of 5.1% with an amortization of 40‐years. The tax credits will also be purchased by Redstone, bringing $3.68 million in total equity. Deferred developer fees and operating income during construction account for the remaining funding.

Market Conditions:

Pythian Manor Apartments is located south of downtown Dallas along East Illinois Ave and one mile west of Interstate 45. Staff’s review of neighborhood conditions show that the property is located in a high minority census tract with low median household incomes. There are 1,320 units of affordable housing and they are located within a two‐ mile radius of the property, including the People’s El Shaddai and St. James Manor. These are properties that were acquired and renovated by Steele Properties in 2016 with bonds from the Corporation.

Map of Project Area


Page 2 of 2

Long‐term efforts by the City of Dallas to revitalize and focus on corridor improvements on East Illinois, East Kiest and within the Fruitdale neighborhood will continue to improve conditions for residents of Pythian Manor Apartments. The Lancaster Corridor Redevelopment plan focuses local and federal dollars along the City’s Lancaster Road corridor and includes light rail improvements, commercial growth and housing redevelopment activities less than one‐mile from Pythian Manor. Several community based nonprofits also are actively advocating and working on housing, workforce and educational programs in the area.

Borrower Summary:

Steele Properties III, LLC will be the primary owner and operator of the property through its subsidiary entity, Steele Pythian LP. Steele Properties is a Denver based developer of affordable housing with more than 5,000 units completed since 2006. The majority of their portfolio has involved tax credit and Section 8 property acquisition and renovation projects. Steele Properties has completed 10 acquisition/rehabilitation projects in Texas. As a developer and manager of affordable housing, Steele Properties has received high marks from their past and present financial partners, including PNC Real Estate, Redstone and Wells Fargo Multifamily Capital.

Staff Recommendation:

Staff recommends Board approval for the Resolution Regarding the Submission of one or more Applications for Allocation of Private Activity Bonds, Notices of Intention to Issue Bonds and State Bond Applications to the Texas Bond Review Board and Declaration of Expectation to Reimburse Expenditures with Proceeds of Future Debt for the Pythian Manor.

Pythian ‐ Underwriting ‐ Project Summary

Project Summary

Applicant Steele Properties

Project Name Pythian Manor

LocationAddress 2719 East Illinois Ave City DallasCounty: Dallas State Texas Zip

Census Tract: 48113016605

Funding Sources Amount % of Total

TSAHC Bonds/RedStone TE Loan 7,900,000$ 65.53%Redstone ‐ HTC Equity 3,684,240$ 30.56%Steele ‐ Deferred Dev Fee 124,643$ 1.03%Mission Ministries ‐ Equity 100$ 0.00%Operating Income During Dev 346,485$ 2.87%

‐$ 0.00%Totals 12,055,468$ 100%

Market Summary City County State Census Tract

Population: 1,300,122 2,552,213 26,956,435 2,902 Average Age: 33 33 34 42

Diversity Index: 69.91 45.01

% Hispanic: 41.66% 39.63% 38.96% 28.15%

% Persons with Disability: 9.60% 9.65% 11.58% 20.47%

% Households that Rent: 58.51% 49.54% 38.51% 37.44%

Median Rents: 937$ 984$ 952$ 854$

% Renters Who are Cost Burdened: 44.98% 45.24% 44.29% 51.15%

Median Home Price: 154,000$ 148,300$ 151,500$ 89,100$

Median Household Income: 47,285$ 53,626$ 57,051$ 29,250$

Unemployment: 3.80% 4.30%

Persons w/o Insurance: 24.91% 22.15% 18.25% 26.33%

Medically Underserved Area: n/a

% Attending Public Schools: 91.17% 92.36% 93.19% 94.75%

Graduation Rate (Dallas ISD): 61.60%

CRA Eleigible Census Tract: Yes

# of LI Projects and Units: 9 1320

1 of 4

Pythian ‐ Underwriting ‐ Summary Sources and Uses



Number of Units 76

Sources Amount Amount Per Unit Percentage of Total

TSAHC Bonds/RedStone TE Loan 7,900,000$ 103,947$ 66%

Redstone ‐ HTC Equity 3,684,240$ 48,477$ 31%

Steele ‐ Deferred Dev Fee 124,643$ 1,640$ 1%

Mission Ministries ‐ Equity 100$ 1$ 0%

Operating Income During Dev 346,485$ 4,559$ 3%

Total Sources 12,055,468$ 158,624.58$ 100%

Uses

Acquisition 5,750,000$ 75,657.89$ 48%

Off‐Site Construction ‐$ 0%

On‐Site Work 227,699$ 2,996.04$ 2%

Site Amenities 37,367$ 491.67$ 0%

Building Costs 2,117,420$ 27,860.79$ 18%

Other Const/Contingency 574,460$ 7,558.68$ 5%

Soft Costs 647,766$ 8,523.24$ 5%

Financing Costs 991,247$ 13,042.72$ 8%

Developer Fees 1,376,067$ 18,106.14$ 11%

Reserve Accounts 333,442$ 4,387.39$ 3%

Total Uses 12,055,468$ 158,624.58$ 100%

(Gap) / Reserve ‐$

Percent of Developer Fee Deferred 0.00%

Summary of Sources and Uses

2 of 4

Pythian ‐ Underwriting ‐ Operating Proforma

Operating Proforma



Number of Units 76 Affordable Units 76 Min. Set Aside 31

Set‐Aside Requirement 30 Affordable % 100% Accessible Unit Min. 4

Residential Income

Unit Type Unit Sq. Ft. Net Sq. Ft. # units Rent Mo. Income Inflator Rent Limiter Year 1 Year 2 Year 3 Year 4 Year 5 Year 10 Year 15

Efficiency 339 2,712 8 1,085$ 8,680$ 1.02 30% AMI 104,160$ 106,243$ 108,368$ 110,535$ 112,746$ 124,481$ 137,437$

Efficiency 339 14,238 42 1,085$ 45,570$ 1.02 60% AMI 546,840$ 557,777$ 568,932$ 580,311$ 591,917$ 653,524$ 721,544$

1‐1 589 14,725 25 1,250$ 31,250$ 1.02 60% AMI 375,000$ 382,500$ 390,150$ 397,953$ 405,912$ 448,160$ 494,805$

1‐1 589 589 1 891$ 891$ 1.02 n/a 10,692$ 10,906$ 11,124$ 11,346$ 11,573$ 12,778$ 14,108$

‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

32,264 76 86,391$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

‐$ ‐$ ‐$ ‐$ ‐$ ‐$

Other income: 87.00$ 6,612$ 1.02 79,344.00$ 80,931$ 82,549$ 84,200$ 85,884$ 94,823$ 104,693$

Potential gross income 1,116,036$ 1,138,357$ 1,161,124$ 1,184,346$ 1,208,033$ 1,333,766$ 1,472,586$

Residential vacancy loss 7.00% (78,123)$ (79,685)$ (81,279)$ (82,904)$ (84,562)$ (93,364)$ (103,081)$

Effective Gross Residential Income 1,037,913$ 1,058,672$ 1,079,845$ 1,101,442$ 1,123,471$ 1,240,403$ 1,369,505$

Operating Expenses TSAHC est. Borrower Yr 1 % EGI Variance Per Unit Inflator

General & Administrative 40,128$ 47,526$ 4.58 18% 625$ 1.03 47,526$ 48,952$ 50,420$ 51,933$ 53,491$ 62,011$ 71,887$

Management Fee 36,252$ 33,926$ 3.27 ‐6% 446$ 1.03 33,926$ 34,944$ 35,992$ 37,072$ 38,184$ 44,266$ 51,316$

Payroll and Related 77,824$ 108,278$ 10.43 39% 1,425$ 1.03 108,278$ 111,526$ 114,872$ 118,318$ 121,868$ 141,278$ 163,780$

Maintenance & Repair 60,040$ 46,500$ 4.48 ‐23% 612$ 1.03 46,500$ 47,895$ 49,332$ 50,812$ 52,336$ 60,672$ 70,335$

Utilities 64,980$ 68,278$ 6.58 5% 898$ 1.03 68,278$ 70,326$ 72,436$ 74,609$ 76,847$ 89,087$ 103,277$

Insurance 25,460$ 20,900$ 2.01 ‐18% 275$ 1.03 20,900$ 21,527$ 22,173$ 22,838$ 23,523$ 27,270$ 31,613$

Taxes 41,800$ 109,449$ 10.55 1,440$ 1.03 109,449$ 112,732$ 116,114$ 119,598$ 123,186$ 142,806$ 165,551$

Operating Debt Service Reserves 0.00 ‐$ 1.03 ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

Replacement reserves 22,800$ 22,800$ 2.20 0% 300$ 1.03 22,800$ 23,484$ 24,189$ ‐$ ‐$ ‐$

HTC/HOME Compliance Fees 3,040$ 3,040$ 0.29 n/a 40$ 1.03 3,040$ 3,131$ 3,225$ 3,322$ 3,422$ 3,967$ 4,598$

Bond Compliance Fees 3,420$ 3,420$ 0.33 0% 45$ 1.03 3,420$ 3,523$ 3,628$ 3,737$ 3,849$ 4,462$ 5,173$

Other (specify): 0.00 ‐$ 1.03 ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

Total Operating Expenses 375,744$ 464,117$ 24% 6,106.80$ 464,117$ 478,041$ 492,382$ 482,239$ 496,706$ 575,819$ 667,532$

state avg 4,521.00$ per unit 6,107$ 6,290$ 6,479$ 6,345$ 6,536$ 7,577$ 8,783$

Operating Expenses as a percentage of Effective Gross Income 44.7% 45.2% 45.6% 43.8% 44.2% 46.4% 48.7%

NET OPERATING INCOME 573,796$ 580,631$ 587,463$ 619,203$ 626,765$ 664,584$ 701,973$

3 of 4

Pythian ‐ Underwriting ‐ Operating Proforma

NET OPERATING INCOME 573,796$ 580,631$ 587,463$ 619,203$ 626,765$ 664,584$ 701,973$

PRIMARY DEBT SERVICE Principal Rate Amort Term Year 1 Year 2 Year 3 Year 4 Year 5 Year 10 Year 15

TSAHC Bonds/RedStone TE Loan 7,900,000$ 5.10% 40 17 466,718$ 466,718$ 463,419$ 463,419$ 463,419$ 463,419$ 463,419$

‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

Total Primary Debt 7,900,000$ 466,718$ 466,718$ 463,419$ 463,419$ 463,419$ 463,419$ 463,419$

7,900$ 98.00% 7,900$ 7,900$ 7,900$ 7,900$ 7,900$ 7,900$ 7,900$

Net Cashflow After Primary Debt 99,178$ 106,013$ 116,145$ 147,884$ 155,446$ 193,265$ 230,654$

DSCR Primary Debt 1.21 1.22 1.25 1.31 1.33 1.41 1.49

SOFT SUBORDINATE DEBT & EQUITY

Redstone ‐ HTC Equity 3,684,240$

Steele ‐ Deferred Dev Fee 124,643$

Mission Ministries ‐ Equity 100$

Operating Income During Dev 346,485$

Total Secondary Debt 4,155,468$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

TSAHC Issuer Fee

4 of 4

74234106.2 / 1001067282

MINUTES AND CERTIFICATION


The Board of Directors of the Texas State Affordable Housing Corporation (the “Corporation”) convened on April 9, 2019, at its regular meeting place, and roll was called of the duly constituted members of said Board of Directors, to-wit:

Name Office

William H. Dietz Chairperson Jerry Romero Vice Chairperson Robert Elliott Jones Director Valerie V. Cardenas Director Lori Cobos Director

and all of said persons 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 was introduced for the consideration of said Board:

“RESOLUTION NO. 19-____

RESOLUTION Regarding the Submission of one or more Applications for Allocation of Private Activity Bonds, Notices of Intention to Issue Bonds and State Bond Applications to the Texas Bond Review Board and Declaration of Expectation to Reimburse Expenditures with Proceeds of Future Debt for the Pythian Manor Apartments”

Upon motion duly made and seconded, the Resolution was finally passed and adopted by the following vote:


MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT and to reflect accurately the duly constituted officers and members of the Board of Directors of the Corporation, and the attached and following copy of such Resolution is hereby certified to be a true and correct copy of an official copy thereof on file among the official records of the Corporation.

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SIGNED this April 9, 2019.

Secretary, Texas State Affordable Housing Corporation

74234106.2 / 1001067282

RESOLUTION NO. 19-______

RESOLUTION Regarding the Submission of one or more Applications for Allocation of Private Activity Bonds, Notices of Intention to Issue Bonds and State Bond Applications to the Texas Bond Review Board and Declaration of Expectation to Reimburse Expenditures with Proceeds of Future Debt for the Pythian Manor Apartments

WHEREAS, the Board of Directors of the Texas State Affordable Housing Corporation (the “Corporation”) desires to submit one or more calendar year 2019 Applications for Allocation of Private Activity Bonds or a calendar year 2019 Application for Carryforward for Private Activity Bonds or one or more calendar year 2020 Applications for Allocation of Private Activity Bonds or a calendar year 2020 Application for Carryforward for Private Activity Bonds (collectively, the “Application”) to the Texas Bond Review Board in connection with tax-exempt obligations (the “Bonds”) relating to the qualified residential rental housing project located at 2719 E. Illinois Avenue, Dallas, Texas 75216 (the “Project”);

WHEREAS, the Corporation intends to issue the Bonds and loan the proceeds to Steele Pythian LP (the “Borrower”), which will use the proceeds for the acquisition, rehabilitation and equipping of the Project;

WHEREAS, it is anticipated that the Borrower will make certain capital expenditures with respect to the Project and currently desires and expects to reimburse the capital expenditures with proceeds of such debt;

WHEREAS, under Treas. Reg. § 1.150-2 (the “Regulation”), to fund such reimbursement with proceeds of tax-exempt obligations, the Corporation must declare its expectation to make such reimbursement;

WHEREAS, the Corporation desires to preserve the ability of the Borrower to reimburse the capital expenditures with proceeds of tax-exempt obligations; and

WHEREAS, the Board desires to make all other appropriate filings and requests to the Texas Bond Review Board to enable the Corporation to issue the Bonds.


1. That the President of the Corporation or any officer of the Corporation is hereby authorized and directed to execute and deliver the Application to the Texas Bond Review Board in connection with requesting allocation for the Bonds, together with any documents, certificates or instruments related thereto.

2. That the President of the Corporation or any other officer of the Corporation is hereby authorized and directed to file with the Texas Bond Review Board one or more Notices of Intent to Issue Bonds and one or more State Bond Applications in connection with the Bonds and such officers are further authorized and directed to request that the application(s) be approved by the Executive Director of the Texas Bond Review Board in accordance with Chapter 181 of the Texas Administrative Code, as amended.

74234106.2 / 1001067282 2

3. That the President of the Corporation or any other officer of the Corporation is hereby authorized and directed to take any and all other actions necessary or incidental to securing the private activity bond allocation(s) and the approval of the Bonds from the Texas Bond Review Board.

4. That the Corporation reasonably expects that the Borrower will reimburse capital expenditures with respect to the Project with proceeds of debt hereafter to be incurred by the Corporation, and that this resolution shall constitute a declaration of official intent under the Regulation. The maximum principal amount of obligations expected to be issued for the Project by the Corporation is $9,200,000.

PASSED, APPROVED AND EFFECTIVE this April 9, 2019.


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CERTIFICATION


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 April 9, 2019, at the Corporation’s offices in Austin, Texas, and the roll was called of the duly constituted members of said Board, who are as follows:

Name Office William H. Dietz Chairperson Jerry Romero Vice-Chair Valerie Cardenas Director Lori Cobos Director Robert Elliott Jones Director

2. The officers of the Corporation (who are not Board members) are as follows:

Name Office David Long President Janie Taylor Executive Vice President Melinda Smith Chief Financial Officer and Treasurer Rebecca DeLeon Secretary

All Board members were present except , thus constituting a quorum. All of the officers of the Corporation were present at the meeting.

3. Whereupon, among other business, the following written resolution (the “Resolution”) bearing the following caption:

“RESOLUTION NO. 19-__


A RESOLUTION APPROVING A LOAN FROM FROST BANK TO THE CORPORATION IN THE AMOUNT OF $4,000,000 TO SUPPORT THE CORPORATION’S HOMEOWNERSHIP PROGRAMS AND/OR THE TEXAS HOUSING IMPACT FUND; AND AUTHORIZING THE PRESIDENT AND EXECUTIVE

2

VICE PRESIDENT TO EXECUTE ALL AGREEMENTS AND DOCUMENTS NECESSARY TO IMPLEMENT SUCH LOAN”

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:


4. That a true, full and correct copy of the Resolution adopted at the meeting described in the above is attached to this certificate; that the adoption of the Resolution will be duly recorded in the Board’s minutes of the meeting; that the persons named above are the duly chosen, qualified and acting members of the Board and officers of the Corporation as indicated; that each member 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.

SIGNED this __th day of April, 2019.

____________________________________ Rebecca DeLeon, Secretary


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RESOLUTION NO. 19-__


A RESOLUTION APPROVING A LOAN FROM FROST BANK TO THE CORPORATION IN THE AMOUNT OF $4,000,000 TO SUPPORT THE CORPORATION’S HOMEOWNERSHIP PROGRAMS AND/OR THE TEXAS HOUSING IMPACT FUND; AND AUTHORIZING THE PRESIDENT AND EXECUTIVE VICE PRESIDENT TO EXECUTE ALL AGREEMENTS AND DOCUMENTS NECESSARY TO IMPLEMENT SUCH LOAN

WHEREAS, the Texas State Affordable Housing Corporation (the “Corporation”) has been duly created and organized pursuant to and in accordance with the provisions of Subchapter Y (Section 2306.551 et. seq.) of Chapter 2306, Texas Government Code, as amended, and other applicable provisions of Texas law (collectively, the “Act”), and

WHEREAS, under the Act, the Corporation is authorized to perform activities and services that the Corporation’s Board of Directors determines will promote the public health, safety, and welfare through the provision of adequate, safe, and sanitary housing primarily for individuals and families of low, very low, and extremely low income; and

WHEREAS, said activities include the Corporation’s (i) single family homeownership programs, which include the provision of down payment and closing cost assistance to eligible borrowers; and (ii) Texas Housing Impact Fund, which includes making loans and investments for single family and multifamily developments; and

WHEREAS, Frost Bank, a Texas bank (the “Lender”) is expected to approve a loan to the Corporation in the principal amount of $4,000,0000 (the “Loan”) for one or more of the above-described activities; and

WHEREAS, after due discussion and consideration following a staff presentation to the Board regarding the general terms and use of proceeds of the Loan, the Board of Directors of the Corporation has determined to approve the Loan and to authorize the President and Executive Vice President to approve, in consultation with counsel, the required documentation for the Loan, and to execute any and all documents required to implement the Loan; and


Section 1. Approval of Loan and Loan Documents. The Board of Directors hereby approves the Loan in the principal amount of $4,000,000. The President and the Executive Vice President are authorized to approve, in consultation with counsel, the terms and provisions of the loan agreement and promissory note that will be executed in connection with the Loan (the “Loan Documents”).

Section 2. Execution and Delivery of Loan Documents. The President and the Executive Vice President are each authorized to execute and deliver the Loan Documents on behalf of the Corporation, and such execution and delivery shall be conclusive evidence that the same have been approved by the Board of Directors.

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Section 3. Ancillary Documents and Related Actions. The President and the Executive Vice President are authorized to approve, in consultation with counsel, the terms and provisions of any ancillary documents and other items (required to be executed in connection with the Loan (collectively, the “Ancillary Documents”). The President and the Executive Vice President are each authorized to execute and deliver the Ancillary Documents on behalf of the Corporation, and such execution and delivery shall be conclusive evidence that the same have been approved by the Board of Directors.

Section 4. Execution and Delivery of Amendment Documents and Related Actions. The President and the Executive Vice President are each authorized by the Board of Directors, at any time to approve (in consultation with counsel), execute and deliver any amendments, modifications, restatements, renewals or extensions of the Loan Documents and the Ancillary Documents (collectively, “Amendment Documents”) and to execute and deliver any and all such Amendment Documents. The execution and delivery by the President or the Vice President of any such Amendment Documents shall be conclusive evidence that the same have been approved by the Board of Directors.

Section 5. Purpose of Resolution. The Board of Directors hereby determine that the execution, delivery and performance by the Corporation of the Loan Documents and the Ancillary Documents (as well as any Amendment Documents) will benefit the Corporation, are consistent with its purposes and authorized by the Act, and are reasonable, necessary and convenient in connection with the conduct of the activities of the Corporation.

Section 6. Ratification of Prior Actions. Any and all actions taken prior to and as of the date of this Resolution by any officer of the Company in the name and on behalf of the Corporation, with respect to any of the matters and transactions described above, are ratified, confirmed and approved by the Board of Directors.

Section 7. Successor or Assigns. The Lender is authorized to rely upon the foregoing resolutions. The authority hereby granted to the President and Executive Vice President shall apply with equal force and effect to the successors in office of each officer of the Corporation.

Section 8. Conflicting Prior Actions. Any order, resolution or any action of the Board of Directors in conflict with this Resolution is hereby repealed to the extent of any such conflict.

Section 9. Severability. 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 10. Effective Date. This Resolution shall be in full force and effect from and

upon its adoption.

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APPROVED AND EFFECTIVE this ___ day of April, 2019.

TEXAS STATE AFFORDABLE HOUSING CORPORATION William H. Dietz, Chairperson Texas State Affordable Housing Corporation

ATTEST: Rebecca DeLeon, Secretary Texas State Affordable Housing Corporation

86th Texas Legislature TSAHC Report April 2019

TSAHC Meetings at Capitol

• Michael Wilt met with staff of members of the Calendars Committee on March 28th to discuss

HB 1402 by Rep. Walle (TSAHC Purposes Bill).

• David Long, Michael Wilt and Executive Vice President Janie Taylor met with stakeholders on numerous occasions to discuss SB 1474 (Private Activity Bond Bill) to try to reach consensus on a number of issues related to the Private Activity Bond program. These meetings are ongoing.

• Michael Wilt met with staff of committee members for Senate IGR to discuss SB 1114 (School

District Bill) on March 29th.

Committee Hearings

• David Long, Michael Wilt, and Development Finance Senior Director Dave Danenfelzer answered questions as resource witnesses on SB 1474 (Private Activity Bond Bill) at Senate IGR on March 18th.

• Michael Wilt answered questions as a resource witness on SB 1114 (School District Bill) and also

made himself available as a resource witness on SB 1474 (Private Activity Bond Bill) at Senate IGR on April 1st.

• The House Urban Affairs Committee is meeting every Thursday morning during session.

• The Senate IGR Committee is meeting every Monday morning during session.

Legislation of Interest

• The bill filing deadline was on March 8th. TSAHC is currently tracking more than 200 bills related to housing and other ancillary issues and industries.

• TSAHC-Specific Bills (links to bills are provided in the Bill Tracking report).

HB 1402 by Rep. Walle / SB 647 by Sen. Lucio – Modifies the income categories TSAHC may serve and allows TSAHC to conduct limited economic development activities.

HB 1402 was voted out of the House International Relations and Economic Development Committee on a 7-1 vote on March 18th and is now in the Calendars Committee. SB 647, which is identical to HB 1402, has been referred to the Senate Intergovernmental Relations Committee.

SB 1474 by Sen. Lucio – Modifies the Private Activity Bond program.

SB 1474 was considered in Senate IGR on March 18th, and CSSB 1474 was considered in Senate IGR on April 1st. CSSB 1474 was left pending so stakeholders could work on final agreed-to modifications.

SB 1114 by Sen. Lucio – Allows school districts to donate or sell property at below fair market value to TSAHC in order to create housing for school district employees on that property.

CSSB 1114 was considered and voted out of Senate IGR on April 1st.

SB 1116 by Sen. Lucio - Establishes a state tax credit system TSAHC would administer to provide more private investment in the creation of Permanent Supportive Housing units.

SB 1116 was referred to the Senate Finance Committee. A hearing has been requested for this bill.

Tab 7

Closed Executive Session – Discussion of the duties and evaluation of the President of the Corporation (Personnel

Matters – Texas Government Code § 551.074).

Tab 8

Review, Discussion, and Possible action relating to the duties and evaluation of the President of the Corporation.