Supplemental Materials
Tennessee Housing Development Agency Board of Directors Meeting March 28, 2017 BLUE FOLDER ITEMS
Revised Agenda (Tab 1)
Grants Committee (Tab 6) Revised Agenda Cannon County Request (Item 5)
Lending Committee (Tab 7) Revised Agenda THDA Income Limits (Item 5)
Tab # 1 Revised Board Meeting Agenda
THDA Board of Directors Meeting March 28, 2017—1:00 p.m. Central Time William R. Snodgrass -Tennessee Tower 312 Rosa L Parks Avenue, Third Floor Nashville, Tennessee 37243 All meetings will be held in The Nashville Room Revised AGENDA (Tab #1) Public Comment to the Board
Bills, Perrey, Board Members
A. Opening Comments and Introductions ........................................................................................................ Bills B. Staff Recognition (Directors) (Tab # 2) .................................................................................................... Perrey C. Approval of Minutes from January 24, 2017, Meeting (Tab # 3) .............................................................. Bills D. Executive Director’s Report (Tab # 2)...................................................................................................... Perrey E. Committee Reports and Committee Matters 1. Bond Finance Committee (Monday, March 27, 2017—2:00 p.m. State Capitol Room G-11) (Tab # 4)................................................................................................................................................. Bills * a. Authorization of Issue 2017-2 ........................................................................................................ Miller * b. Issue 2017-2 Reimbursement Resolution ...................................................................................... Miller c. Bond Counsel Request For Qualifications ..................................................................................... Miller 2. Rental Assistance Committee (Tuesday, March 28—10:00 am CT) (Tab # 5) ............................. Brown a. 2017 Housing Choice Voucher and Performance Based Contract Administration Programs Update .......................................................................................................................... Ridley 3. Grants Committee (Tuesday, March 28—10:15 am CT) (Tab # 6) ....................................... van Vuuren * a. Rebuild and Recover Program Modification ................................................................................... Watt * b. Authorization to submit the 2017 Weatherization Assistance Program Funds Application ............. Watt * c. Cannon County Requests ................................................................................................................. Watt d. Sumner County 2011 HOME Project Update (verbal) .................................................................... Watt e. HOME Beneficiary Report .......................................................................................................... Teasley 4. Lending Committee (Tuesday, March 28—10:30 am CT) (Tab # 7) ............................................. Cleaves * a. Change in Allowable Lender Fees .................................................................................................... Hall * b. HUD Counseling Applications ............................................................................................ Hall / Miller * c. Income Limits ................................................................................................................................... Hall d. Hardest Hit Fund/Down Payment Assistance Program Update (verbal) ........................................... Hall e. Calendar Year End Report ................................................................................................................. Arik 5. Tax Credit Committee (Tuesday, March 28—10:45 am CT) (Tab # 8) ............................................. Tully * a. 2017 Multifamily Tax-Exempt Bond Authority Waiver Requests ................................................ Duarte b. 2016 Competitive and Noncompetitive Credit Equity Pricing Update (verbal) ........................... Duarte
* Indicates Board Action Required
? Indicates Discussion Which Might Result In Board Action
Tab # 6 Grants Committee Agenda Items: Revised Agenda Cannon County Request (Item 5)
Tennessee Housing Development Agency Grants Committee March 28, 2017 10:15 a.m. Central Time
AGENDA 1.
Call to Order ................................................................................... Van Vuuren
2.
Approval of Minutes for January 24, 2017 Meeting ...................... Van Vuuren
3.
Rebuild and Recover Program Modification ............................................. Watt
4.
Authorization to Submit Application for 2017 Weatherization Assistance Program Funds ........................................................................................... Watt
5.
Cannon County Requests ........................................................................... Watt
6.
Sumner County 2011 HOME Project Update (verbal) .............................. Watt
7.
HOME Beneficiary Report ........................................................................ Clark
8.
Adjourn ............................................................................................ Van Vuuren
LOCATION William R. Snodgrass Tennessee Tower 312 Rosa L. Parks Avenue, Third Floor Nashville, TN 37243 The Nashville Room
COMMITTEE MEMBERS Pieter van Vuuren, Chair Kim Grant Brown Tre Hargett Ron Jones Lynn Tully Justin Wilson
Tennessee Housing Development Agency Andrew Jackson Building Third Floor 502 Deaderick St., Nashville, TN 37243 Bill Haslam
Ralph M. Perrey
Governor
Executive Director
MEMORANDUM TO:
Grants Committee and Board of Directors
FROM:
Don Watt, Director of Community Programs
DATE:
March 22, 2017
RE:
HOME Grant #HM-13-04: Cannon County Request for Approval to Undertake Reconstruction Activity at 508 West High Street, Woodbury
Cannon County (“Grant Recipient”) is currently implementing a homeowner rehabilitation program using $413,380 in HOME resources awarded by THDA under the 2012 HOME Program Description. To date, the Grant Recipient has allocated $163,560 to assist 4 homeowners, with $249,820 remaining to assist other homeowners in Cannon County. As noted on the attached request, the Grant Recipient has initiated assistance for a fifth homeowner, Ms. Helen Miller at 508 West High Street. As demolition work was started, the contractor and the Grant Recipient recognized that the extent of termite damage far exceeded what was originally identified and affected the structural integrity of the unit. Termite damage has completely destroyed the exterior walls and flooring system, including the rim joists, causing the exterior walls to no longer be connected to the floor. The projected cost to rehabilitate the unit has increased from $38,600 to $73,975, well in excess of the $40,000 cap established for the program. The contractor, Grant Recipient, and THDA staff are concerned that project cost may increase further as additional demolition occurs and additional structural deterioration is identified. Given this uncertainty and following consultation with THDA, the Grant Recipient is requesting permission to undertake reconstruction of this unit rather than moving forward with rehabilitation. The 2012 HOME Program Description does not permit the reconstruction of housing units; therefore, the Board’s approval of this request is required. The Grant Recipient has secured the homeowner’s consent to reconstruct the unit. Additionally, the Grant Recipient has noted that Ms. Miller does not have a mortgage loan on this property. The Grant Recipient has also identified $15,000 in USDA assistance that can be used to assist with the added construction costs.
THDA.org - (615) 815-2200 - Toll Free: 800-228-THDA
Page 2 Staff recommends that the Board approve an exception to the 2012 HOME Program Description to permit the reconstruction of the housing unit at 508 West High Street in Woodbury, subject to the following conditions: 1. The number of housing units on the lot may not be decreased or increased as part of the reconstruction project. However, the number of rooms per unit may be increased or decreased depending upon the needs and the size of the household. 2. The reconstructed housing will have a compliance period of 15 years, secured by a deed of trust and a note with 6.67% of the amount of HOME funds used forgiven annually. 3. The unit must be constructed in accordance with THDA’s Design Standards for New Construction. 4. Cannon County must apply $15,000 in USDA – Rural Development Housing Preservation funds towards the reconstruction of the unit. 5. All other terms and requirements of the 2012 HOME Program Description will apply.
www.THDA.org - (615) 815-2200 - Toll Free: 800-228-THDA
Tab # 7 Lending Committee Agenda Items: THDA Income Limits (Item 5)
Tennessee Housing Development Agency Lending Committee March 28, 2017 10:30 a.m. Central Time AGENDA 1.
Call to Order ............................................................................................................... Cleaves
2.
Approval of Minutes for January 24, 2017 Meeting .................................................. Cleaves
3.
Change in Allowable Lender Fees .................................................................................. Hall
4.
HUD Counseling Applications ...........................................................................Hall / Miller
5.
THDA Income Limits ................................................................................................. Miller
6.
Hardest Hit Fund/Down Payment Assistance Program Update (verbal) ....................... Hall
7.
Calendar Year End Report .............................................................................................. Arik
8.
Adjourn ....................................................................................................................... Cleaves
LOCATION William R. Snodgrass Tennessee Tower 312 Rosa L. Parks Avenue, Third Floor Nashville, TN 37243 The Nashville Room
COMMITTEE MEMBERS Dorothy Cleaves, Chair Regina Hubbard Larry Martin Jim Sattler Todd Skelton
Tennessee Housing Development Agency Andrew Jackson Building, Third Floor 502 Deaderick Street, Nashville, TN 37243 Bill Haslam
Ralph M. Perrey
Governor
Executive Director
MEMORANDUM DATE:
March 22, 2017
TO:
Lending Committee Board of Directors
FROM:
Lynn E. Miller, Chief Legal Counsel
SUBJECT:
THDA Income Limits
Based on a recently issued Internal Revenue Service Revenue Procedure (IRS Rev. Proc. 2017-27), staff has some, but not all, of the information needed to calculate and propose revised income limits for THDA’s mortgage loan programs for 2017. As described in the attached memo from THDA Bond Counsel, Kutak Rock, THDA has a safe harbor, until mid-May, to use the currently approved income limits. Staff does expect to have the necessary information from HUD and the IRS to calculate revised income limits prior to the end of the safe harbor period, but that will occur before the May Board meeting. As noted in prior years, when the necessary calculations are completed, county income limits that are lower than the current limits must be reduced to insure compliance with federal tax code requirements and THDA’s obligations to bondholders. Income limits that are higher may be, but are not required to be, increased. In the recent past, when revised income limits have been presented to the Committee and Board for consideration, the choice has been to select the set of income limits that offers the best combination of maximum income limit increases and minimum income limit reductions. Consequently, staff recommends that the Board authorize staff to calculate revised income limits consistent with Rev. Proc. 2017-27 and other necessary information from HUD and the IRS and to select for use beginning no later than May 16, 2017, the set of income limits that offers the best combination of maximum income limit increases and minimum income limit reductions. LEM/ds
THDA.org – (615) 815-2200 – Toll Free: 800-228-THDA
Revised Agenda (Tab 1)
Grants Committee (Tab 6) Revised Agenda Cannon County Request (Item 5)
Lending Committee (Tab 7) Revised Agenda THDA Income Limits (Item 5)
Tab # 1 Revised Board Meeting Agenda
THDA Board of Directors Meeting March 28, 2017—1:00 p.m. Central Time William R. Snodgrass -Tennessee Tower 312 Rosa L Parks Avenue, Third Floor Nashville, Tennessee 37243 All meetings will be held in The Nashville Room Revised AGENDA (Tab #1) Public Comment to the Board
Bills, Perrey, Board Members
A. Opening Comments and Introductions ........................................................................................................ Bills B. Staff Recognition (Directors) (Tab # 2) .................................................................................................... Perrey C. Approval of Minutes from January 24, 2017, Meeting (Tab # 3) .............................................................. Bills D. Executive Director’s Report (Tab # 2)...................................................................................................... Perrey E. Committee Reports and Committee Matters 1. Bond Finance Committee (Monday, March 27, 2017—2:00 p.m. State Capitol Room G-11) (Tab # 4)................................................................................................................................................. Bills * a. Authorization of Issue 2017-2 ........................................................................................................ Miller * b. Issue 2017-2 Reimbursement Resolution ...................................................................................... Miller c. Bond Counsel Request For Qualifications ..................................................................................... Miller 2. Rental Assistance Committee (Tuesday, March 28—10:00 am CT) (Tab # 5) ............................. Brown a. 2017 Housing Choice Voucher and Performance Based Contract Administration Programs Update .......................................................................................................................... Ridley 3. Grants Committee (Tuesday, March 28—10:15 am CT) (Tab # 6) ....................................... van Vuuren * a. Rebuild and Recover Program Modification ................................................................................... Watt * b. Authorization to submit the 2017 Weatherization Assistance Program Funds Application ............. Watt * c. Cannon County Requests ................................................................................................................. Watt d. Sumner County 2011 HOME Project Update (verbal) .................................................................... Watt e. HOME Beneficiary Report .......................................................................................................... Teasley 4. Lending Committee (Tuesday, March 28—10:30 am CT) (Tab # 7) ............................................. Cleaves * a. Change in Allowable Lender Fees .................................................................................................... Hall * b. HUD Counseling Applications ............................................................................................ Hall / Miller * c. Income Limits ................................................................................................................................... Hall d. Hardest Hit Fund/Down Payment Assistance Program Update (verbal) ........................................... Hall e. Calendar Year End Report ................................................................................................................. Arik 5. Tax Credit Committee (Tuesday, March 28—10:45 am CT) (Tab # 8) ............................................. Tully * a. 2017 Multifamily Tax-Exempt Bond Authority Waiver Requests ................................................ Duarte b. 2016 Competitive and Noncompetitive Credit Equity Pricing Update (verbal) ........................... Duarte
* Indicates Board Action Required
? Indicates Discussion Which Might Result In Board Action
Tab # 6 Grants Committee Agenda Items: Revised Agenda Cannon County Request (Item 5)
Tennessee Housing Development Agency Grants Committee March 28, 2017 10:15 a.m. Central Time
AGENDA 1.
Call to Order ................................................................................... Van Vuuren
2.
Approval of Minutes for January 24, 2017 Meeting ...................... Van Vuuren
3.
Rebuild and Recover Program Modification ............................................. Watt
4.
Authorization to Submit Application for 2017 Weatherization Assistance Program Funds ........................................................................................... Watt
5.
Cannon County Requests ........................................................................... Watt
6.
Sumner County 2011 HOME Project Update (verbal) .............................. Watt
7.
HOME Beneficiary Report ........................................................................ Clark
8.
Adjourn ............................................................................................ Van Vuuren
LOCATION William R. Snodgrass Tennessee Tower 312 Rosa L. Parks Avenue, Third Floor Nashville, TN 37243 The Nashville Room
COMMITTEE MEMBERS Pieter van Vuuren, Chair Kim Grant Brown Tre Hargett Ron Jones Lynn Tully Justin Wilson
Tennessee Housing Development Agency Andrew Jackson Building Third Floor 502 Deaderick St., Nashville, TN 37243 Bill Haslam
Ralph M. Perrey
Governor
Executive Director
MEMORANDUM TO:
Grants Committee and Board of Directors
FROM:
Don Watt, Director of Community Programs
DATE:
March 22, 2017
RE:
HOME Grant #HM-13-04: Cannon County Request for Approval to Undertake Reconstruction Activity at 508 West High Street, Woodbury
Cannon County (“Grant Recipient”) is currently implementing a homeowner rehabilitation program using $413,380 in HOME resources awarded by THDA under the 2012 HOME Program Description. To date, the Grant Recipient has allocated $163,560 to assist 4 homeowners, with $249,820 remaining to assist other homeowners in Cannon County. As noted on the attached request, the Grant Recipient has initiated assistance for a fifth homeowner, Ms. Helen Miller at 508 West High Street. As demolition work was started, the contractor and the Grant Recipient recognized that the extent of termite damage far exceeded what was originally identified and affected the structural integrity of the unit. Termite damage has completely destroyed the exterior walls and flooring system, including the rim joists, causing the exterior walls to no longer be connected to the floor. The projected cost to rehabilitate the unit has increased from $38,600 to $73,975, well in excess of the $40,000 cap established for the program. The contractor, Grant Recipient, and THDA staff are concerned that project cost may increase further as additional demolition occurs and additional structural deterioration is identified. Given this uncertainty and following consultation with THDA, the Grant Recipient is requesting permission to undertake reconstruction of this unit rather than moving forward with rehabilitation. The 2012 HOME Program Description does not permit the reconstruction of housing units; therefore, the Board’s approval of this request is required. The Grant Recipient has secured the homeowner’s consent to reconstruct the unit. Additionally, the Grant Recipient has noted that Ms. Miller does not have a mortgage loan on this property. The Grant Recipient has also identified $15,000 in USDA assistance that can be used to assist with the added construction costs.
THDA.org - (615) 815-2200 - Toll Free: 800-228-THDA
Page 2 Staff recommends that the Board approve an exception to the 2012 HOME Program Description to permit the reconstruction of the housing unit at 508 West High Street in Woodbury, subject to the following conditions: 1. The number of housing units on the lot may not be decreased or increased as part of the reconstruction project. However, the number of rooms per unit may be increased or decreased depending upon the needs and the size of the household. 2. The reconstructed housing will have a compliance period of 15 years, secured by a deed of trust and a note with 6.67% of the amount of HOME funds used forgiven annually. 3. The unit must be constructed in accordance with THDA’s Design Standards for New Construction. 4. Cannon County must apply $15,000 in USDA – Rural Development Housing Preservation funds towards the reconstruction of the unit. 5. All other terms and requirements of the 2012 HOME Program Description will apply.
www.THDA.org - (615) 815-2200 - Toll Free: 800-228-THDA
Tab # 7 Lending Committee Agenda Items: THDA Income Limits (Item 5)
Tennessee Housing Development Agency Lending Committee March 28, 2017 10:30 a.m. Central Time AGENDA 1.
Call to Order ............................................................................................................... Cleaves
2.
Approval of Minutes for January 24, 2017 Meeting .................................................. Cleaves
3.
Change in Allowable Lender Fees .................................................................................. Hall
4.
HUD Counseling Applications ...........................................................................Hall / Miller
5.
THDA Income Limits ................................................................................................. Miller
6.
Hardest Hit Fund/Down Payment Assistance Program Update (verbal) ....................... Hall
7.
Calendar Year End Report .............................................................................................. Arik
8.
Adjourn ....................................................................................................................... Cleaves
LOCATION William R. Snodgrass Tennessee Tower 312 Rosa L. Parks Avenue, Third Floor Nashville, TN 37243 The Nashville Room
COMMITTEE MEMBERS Dorothy Cleaves, Chair Regina Hubbard Larry Martin Jim Sattler Todd Skelton
Tennessee Housing Development Agency Andrew Jackson Building, Third Floor 502 Deaderick Street, Nashville, TN 37243 Bill Haslam
Ralph M. Perrey
Governor
Executive Director
MEMORANDUM DATE:
March 22, 2017
TO:
Lending Committee Board of Directors
FROM:
Lynn E. Miller, Chief Legal Counsel
SUBJECT:
THDA Income Limits
Based on a recently issued Internal Revenue Service Revenue Procedure (IRS Rev. Proc. 2017-27), staff has some, but not all, of the information needed to calculate and propose revised income limits for THDA’s mortgage loan programs for 2017. As described in the attached memo from THDA Bond Counsel, Kutak Rock, THDA has a safe harbor, until mid-May, to use the currently approved income limits. Staff does expect to have the necessary information from HUD and the IRS to calculate revised income limits prior to the end of the safe harbor period, but that will occur before the May Board meeting. As noted in prior years, when the necessary calculations are completed, county income limits that are lower than the current limits must be reduced to insure compliance with federal tax code requirements and THDA’s obligations to bondholders. Income limits that are higher may be, but are not required to be, increased. In the recent past, when revised income limits have been presented to the Committee and Board for consideration, the choice has been to select the set of income limits that offers the best combination of maximum income limit increases and minimum income limit reductions. Consequently, staff recommends that the Board authorize staff to calculate revised income limits consistent with Rev. Proc. 2017-27 and other necessary information from HUD and the IRS and to select for use beginning no later than May 16, 2017, the set of income limits that offers the best combination of maximum income limit increases and minimum income limit reductions. LEM/ds
THDA.org – (615) 815-2200 – Toll Free: 800-228-THDA
