From: ronm145 <email@example.com>
To: tgottel <firstname.lastname@example.org>; bfunderburk <email@example.com>
Cc: mkurbansade <firstname.lastname@example.org>; jgrabenhorst <email@example.com>
Sent: Sun, Oct 23, 2016 4:00 pm
Subject: Housing Finance Corporations
As leaders of the elected officials and the city staff, I would like to visit with you briefly about Housing Finance Corporations. As you know, I have been researching salient information about HFCs. It's my understanding you have had at least exploratory discussions about HFCs.
It's my opinion that we narrowly missed an involvement with the Dallas Housing Authority. I feel more proposed associations with DHA are "in the works." I have nothing against the good work they do, however as a citizen of Rowlett, I , and other citizens I have talked to, prefer that Rowlett have more control over our under served markets than Dallas County. I am aware of the financial risks to the city and political exposures to elected officials. I feel these concerns are satisfactorily addressed.
I have been researching other municipalities. Rowlett is not unique in their under served citizens. It's nobody's fault. Everywhere, the Senior and Workforce real estate markets have been surprisingly and unexpectedly ignored by events favoring upscale real estate development. These are not "low income" people. They are policemen, firemen, staff in city offices, small business operators, and retired people on Social Security. They are the absolutely essential lubrication that make any community work. This adverse condition has been created because of the extraordinary good economic conditions that have spurred the economic explosion for Texas. Costs of housing have simply outdistanced many citizens ability to pay for suitable housing. It is incumbent upon city governments to address this problem. It is not felt that Section 8 and Walker Vouchers are the best way to address the under served market problem. These programs are more utilized in "low income" markets. This is not to be confused with workforce markets.
HFCs offer a more diversified, yet more targeted, alternative to Section 8. There is no use of subsidies such as Section 8 or Walker Vouchers. The HFC vehicle is the financing vehicle offered to Lenders and Investors. Lenders receive tax credits and CRA credits for their willingness to participate in financing the projects. There are rules, but very acceptable rules.
I have talked to experts in legal, financial, and administration of HFCs. I can share with you my findings, then provide you the contact information to verify my observations.
Essentially, two markets are addressed:
1. Senior housing
2. Workforce housing
Four advantages of Rowlett using HFCs in lieu of Dallas Housing Authority:
1. More control of who occupies and/or finances housing for selected market
2. Near 75%-80% of typical normal tax revenue with contract with city to offset tax exempt status.
3. No risk to city after HFC organized and running.
4. Political ties with HFC severed. No "blow back" to elected officials.
Four sources of reliable information:
1. Jim Shaw, Director, Capital Area Housing Finance Corporation, Austin
2. Jeanne Talerico, Executive Director, Texas Association of Local Housing Finance Agencies, Austin
3. Ryan Bowen, attorney, Chapman and Cutler, Chicago
4. Tim Nelson, financial consultant, Hilltop Securities, Austin
I have offers from both Jeanne Talerico and Jim Shaw to travel to Rowlett and make themselves available to questions from City Council. If the results of our meeting are positive, I would recommend this visit as a next step.
I have discussed briefly my interests in HFC with Jim Grabenhorst and Marc Kubansade. By copy of this email, I am also inviting them to any meeting.
If you could see your way clear to try to meet sometime in the coming week, I can then put some of this "stuff" in a file. It's getting a bit cumbersome........and I've lost my calculator somewhere in there.
I believe it is worthy of your time to review my findings. Then, you will be given contact information to verify my representations.
Thanks for your time.