RBA AGENDA ITEM NO.: AHFC-1 AUSTIN HOUSING FINANCE CORPORATION AGENDA DATE: Mon 09/12/2005 RECOMMENDATION FOR BOARD ACTION PAGE: 1 of 2 SUBJECT; Approve a resolution approving the Fiscal Year 2005-2006 Austin Housing Finance Corporation Grant Operating Budget in the amount of $13,377,832 and Housing Assistance Fund Budget in the amount of $1,370,753 for a total budget not to exceed $14,748,585, and the named housing programs; directing staff to develop program guidelines for the named housing programs for Fiscal Year 2005-2006; and establishing administrative approval limits for the General Manager. AMOUNT & SOURCE OF FUNDING: The sources to fund the annual AHFC budgets include: (a) Grant Operating Budget • $1.143,229 from the Housing Trust; $37,824 from the City UNO-Housing Trust Fund; $830,474 from the City S.M.A.R.T. Housing™ Capital Improvement Project Fund; $2,654,684 from HUD HOME Program Income; $806,259 from the HUD Community Development Block Grant revolving fund; and $2,472,433 HUD Community Development Block Grant, $204,041 HUD- American Dream Down Payment Initiative and $4,074,354 from HUD-HOME Investment Partnership Program and (a2) Carryforward form 04-05 for Grant Operating Budget - $433,912 from S.M.A.R.T. Housing™ Capital Improvement Project Fund, $1,154,534 HUD Community Development Block Grant (b) AHFC Housing Assistance Fund - $1,370,753. FISCAL NOTE: A fiscal note is attached. REQUESTING Austin Housing Finance DIRECTOR'S DEPARTMENT: Corporation AUTHORIZATION: Paul Helpers FOR MORE INFORMATION CONTACT: Paul Hilgers, Executive Director. Austin Housing Finance Corporation, 974-3108. PRIOR BOARD ACTION: N/A BOARD AND COMMISSION ACTION: N/A This action will approve the 2005-2006 Grant Operating Budget and Housing Assistance Fund Budget for the Austin Housing Finance Corporation (AHFC). The annual budget resolution also directs staff to implement program guidelines for the budgeted housing programs, authorizes the transfer of budget authority from one line to another in limited amounts, and authorizes the General Manager to administratively approve certain projects less than $300,000 ($250,000 for real estate sales or acquisitions). The City Council created the Austin Housing Finance Corporation in 1979 as a public, non-profit corporation to facilitate the financing and development of affordable housing for low- and moderate- income residents. AHFC administers affordable housing programs described in the attachments to this document. U.S. Department of Housing and Urban Development grant funds provided the City provide the bulk of AHFC grant funds. The AHFC Housing Assistance Fund was established in 1988 from a residual value bond program that provided $7.5 million in initial funding. RCA Serial*: 9734 Date: 09/12/05 Original: Yea • P u b l i s h e d : Disposition: Adjusted version published: RBA AGENDA ITEM NO.: AHFC-1 AUSTIN HOUSING FINANCE CORPORATION AGENDA DATE: Mon 09/12/2005 RECOMMENDATION FOR BOARD ACTION PAGE: 2 of 2 . Employees of the City's Neighborhood Housing and Community Development Office manage the operation of AHFC through an annual service agreement. AHFC offices are located in the Neighborhood Housing and Community Development Office. Housing Assistance Fund balances are invested and managed by the City Treasurer in accordance with a funds management agreement and State regulations. AHFC wilt provide housing solutions through well-managed programs, projects, and relationships. The AHFC goals for Fiscal Year 2005-2006 are: 1. Optimize opportunities for quality affordable housing in Austin. 2. Provide leadership and expertise to promote affordable housing in Austin. 3. Increase the attainability of AHFC. In addition to administering bond programs, AHFC will administer the Homebuyer Program, the Rental Housing Program, and the Owner-Occupied Housing Program. AHFC is the responsible entity for the production goals of S.M. A.R.T. Housing™ . AHFC is also currently administering the Mortgage Credit Certificate Program, that will result in $20 million in mortgages by December 31, 2006 for families with incomes of no more than 115% of the Austin Median Family Income (currently $76,935). RCA Seriiltf: 9734 Original: No Published: Deposition: Adjusted version published: AHFC RESOLUTION NO. 20050912-AHFCNNN October 1,2005 - September 30,2006 BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE AUSTIN HOUSING FINANCE CORPORATION: Section 1. The following terms having the meanings assigned to them in this section: (a) "AHFC Program" means a housing and community development program listed in the Grant Operating Budget or the Assistance Budget which is not a City Program. (b) "AHFC Program Guideline'1 means the written program guideline prepared for an AHFC Program which is approved as to form by the General Counsel. .(c) "Annual Contract" means the annual contract the City enters into with the Corporation to management and administer various City Programs. (d) "Assistance Budget" means the Corporation's Housing Assistance Fund Budget for the period October 1, 2005 through September 30,2006 set forth on Exhibit "B". (e) "Board of Directors" means the Board of Directors of the Corporation. (f) "Budgeted Program" means an AHFC Program or a City Program. (g) "City" means the City of Austin, Texas. (h) "City Program" means a City approved community development program under Chapter 373, Texas Local Government Code which is administered on behalf of the City by the Corporation under the Annual Contract. (i) "Corporation" means the Austin Housing Finance Corporation. (j) "General Counsel" means the General Counsel of the Corporation and includes any General Counsel designee. (k) "General Manager" means the General Manager of the Corporation and includes any General Manager designee. (1) "Grant Operating Budget" means the Corporation's Grant Operating Budget for the period October 1, 2005 through September 30,2006 set forth on Exhibits "Al" and «A2". Section 2. The Corporation approves the Grant Operating Budget and the Assistance Budget Section 3. The General Manager is authorized to prepare, adopt, issue and amend AHFC Program Guidelines, if no expenditures of the Corporation's funds for an AHFC Program occur prior to the effective date of the AHFC Program Guideline. Section 4. Subject to the limitations of Section 5, the General Manager is authorized to expend: (a) the Grant Operating Budget, (b) the Assistance Budget, (c) any funds unspent at the close of Fiscal Year 2004-2005 that are associated with the Budgeted Programs, and (d) all federal program income generated by the Corporation during previous fiscal years and Fiscal Year 2005-2006 from the Budgeted Programs. Section 5. The General Manager may expend the amounts described in Section 4 without additional authority or approval from the Board of Directors; if: (a) the amounts to be expended are available and are used for the programs and purposes in the Grant Operating Budget or the Assistance Budget, (b) the activity for which funds are expended is a Budgeted Program, (c) before funds are expended for a Budgeted Program, program guidelines have been prepared in accordance with Section 3 or by the City of Austin, (d) the General Counsel approves the form of the contract, (e) the amounts expended for any single contract expenditure do not exceed the amount of $300,000,00, except that any real estate sale or acquisition by the Corporation does not exceed $250,000.00, and (f) for an expenditure of program income not budgeted which does not require reprogramming under the HUD Consolidated Plan, the General Manager files in the Books and Records of the Corporation a revised Grant Operating Budget or Assistance Budget reflecting the program income amounts not previously budgeted. Section 6. The General Manager is authorized to administratively transfer amounts in the Grant Operating Budget or the Assistance Budget which are funded with federal funds from one line item to another line item if: (a) each amount resulting from the transfer does not exceed the line item amount of the source program line item in the Grant Operating Budget or Assistance Budget by (1) ten percent, or (2) twenty-five percent for a line item not funded with federal Community Development Block Grant funds, and (b) after the transfer, a copy of the revised Grant Operating Budget or Assistance Budget is filed in the Books and Records of the Corporation. Section 7. The General Manager is authorized to administratively transfer for a temporary period amounts in the Grant Operating Budget or the Assistance Budget from one line item to another line item if: (a) the funds transferred are to be refunded to the source program before the time the funds are required to be used in the source program and before the end of Fiscal Year 2005-2006, (b) the transfer of the funds does not require reprogramming under the HUD Consolidated Plan, (c) each amount resulting from the transfer does not exceed by fifty percent the line item amount of the source program in the Grant Operating Budget or Assistance Budget, (d) a copy of the revised Grant Operating Budget or Assistance Budget is filed in the Books and Records of the Corporation, and (e) required notification is made to HUD, both before the temporary transfer of the funds from one program and upon the refunding of the amount to the source program. Section 8. The General Manager is authorized to establish in accordance with applicable federal requirements revolving Community Development Block Grant funds and HOME program income amounts for a Budgeted Program as determined necessary by the General Manager to maximize production and efficiently administer the Budgeted Program. ADOPTED: September 12 , 2005 ATTEST: Shirley A. Brown Secretary Auotiii flowing finance Corporation Gtwit Operating Budget Hwl Yew 2005-2006 (for the period October 1,2005 through September 30,2006) EXHIBIT Al - New Funding Sourcei of Pundi Tronifer From City of Aiiitin (COA) Revolving Loon Fund Program Income (Sale* Ptoceedi) Gfint Pfoceedt Total Source of Fund* Uie_pf Punda Ailittcd Housing Tenant Bued Rental Aiiiitonce Rental Homing Rental Houiing Development Aiiiitance Architectural Barrier Removal Andenon Hill Redevelopment Pint-Time Homebuyer Home buyer Lending Aiiiitance Homeawnenhip Development Acquisition and Development Houiing Truit Fund UNO - Housing Truit Fund S.M.A-R.T. Houiing Capital Improvement Program CDBG - Revolving Loan HOME CDBG ADDI HOME HOME HOME Program Income COA- Houiing Trutt Fund CDBG CDBG-PI COA- Houiing Teuit Fund COA- UNO-Housing Trust Fund HOME Program Income HOME (CHDO) HOME CDBG HOME Program Income HOME HOME Program Income ADDI CDBG Houfcholda Served 1.143.229 37,824 830.474 2.011.527 806,259 2^54,664 2,472,433 204,041 4.074^54 6.750.828 12.223398 431,925 58^75 17S.OOO 665.000 318.833 45.446 968,229 37,824 110,609 679,058 1.041.382 3.201.381 1.848.000 1^09,872 238,732 204.041 1.652.645 82 138 100 165 453,873 47 CHDO Capacity Building Owner-Occupied Homing Architectural Barrier Removal Emergency Home Repair Homeowner Moderate Rehabilitation Bond Program Material! Grant* Program TotdUMofFuntU HOME CDBG - Revolving Loan COA-G/F CIP HOME Program Income HOME CDBG CDBG CDBG - Revolving Loin CDBG HOME Program Income HOME HTF +85,861 607,733 830,474 266.000 2,643,941 125,000 529,782 950,000 153,080 219.945 133,268 10U56 607,549 . . 400 450 30 40 40 12.223.298 1.492 Auttin Housing Finance Corporation Grant Operating Budget Raw! Year 2005-2006 (far the period October 1,2005 through September 30,2006) EXHIBIT A2 - Guryfonwd Funding Source" of Fund • Transfer From City of Aiutin (COA) Grant Proceed* Total Source ofFundi jJif of Funds Renul Hollaing Architectural Barrier Removal First Time Homebuyw . Homeownerthip Development Acquitition and Development Owner-Occupied Homing Architectural Bnciiei Removal Homeowner Moderate Rehabilitation S.M.A.R.T. Homing Capitol Improvement Program CDBG CDBG COA-G/FCIP CDBG CDBG - Revolving Loan Houacholda Served 433.912 433.912 1.154.534 1.154.53* 1J88.446 226.528 433.912 433.912 687,837 240,169 240,169 100 47 400 30 Total Uoe of Fundi 1J83.446 577 Austin Housing Finance Corporation Housing Assistance Fund Budget Fiscal Year 2005-2006 (for the period October 1,2005, through September 30,2006) EXHIBITS Source of Funds Housing Assistance Fund Sales Proceeds 501,340 Interest Income 13,488 Fees 68,351 Fund Balance 787.574 Total Source of Funds Use ofFunds Bond Program 153,378 Asset Management 143,126 Homeownership Dvelopment - Acquisition and Development 473,364 Homebuyer Assistance - Down Payment Assistance 27,976 Materials Rebate Program 0 Administration 572.909 Total Use of Funds