April 4, 2013 - San Antonio Housing Authority

Transcripción

AGENDA
Regular Board meeting
April 4, 2013, 1:00 pm
SanAnt
oni
oHousi
ngAut
hor
i
t
y
Create dynamic communities where people thrive.
Board of Commissioners
Chairman
Ramiro Cavazos
Vice-Chair
Vacant
Commissioner
Karina C. Cantu
Commissioner
Richard Gambitta
Commissioner
Yolanda Hotman
Commissioner
Stella Burciaga Molina
Commissioner
Charles R. Muñoz
President & CEO
Lourdes Castro Ramirez
San Antonio Housing Authority
Regular Board Meeting
Thursday, April 4, 2013, 1:00 p.m.
The meeting is wheelchair accessible. The accessible entrance is located at 818 S. Flores. Accessible parking spaces are also located at
SAHA main office, 818 S. Flores. Auxiliary aids and services are available upon request (interpreters for the deaf must be requested fortyeight (48) hours prior to the meeting) by calling (210) 477-6288 V/TTY for assistance.
1. Meeting called to order.
The Board of Commissioners or its committee may hold a closed meeting pursuant to Texas Government Code § 551.071-076 for consultation
concerning attorney-client matters, real estate, litigation, personnel, and security matters. The Board or committee reserves the right to enter
into closed meeting at any time during the course of the meeting.
2. Pledge of allegiance.
3. Ceremonial Items.
 Swearing in of Commissioner Dr. Morris Stribling. (Leticia Vacek, City Clerk, City of San Antonio)
 Recognition of Grand Prize winner of the design of the 2013 Education Investment Foundation Fiesta
Medal.
 Recognition of appreciation of Citibank support of SAHA’s Choice Neighborhoods Initiative.
4. Minutes:
 Regular Board meeting held on February 28, 2013.
CONSENT AGENDA
The following items under the consent agenda have been vetted through the listed committee and forwarded to the full Board of Commissioners for
approval. The consent agenda items can be taken together with one vote. Any Commissioner can request that a consent agenda item be pulled for
further discussion.
Operations and Human Resources Committee
5. Consideration and approval regarding Resolution 5332, authorizing the proposed 2013-2014 Moving to
Work (MTW) agency plan, including revisions to the MTW plan, the Public Housing Admissions and
Continued Occupancy Plan (ACOP), the Housing Choice Voucher Administration Plan (Admin. Plan), and
Capital Fund Program Plan. (Richard Milk, Sr. Policy and Planning Manager; David Clark, Interim Deputy
Director of Public Housing; Deborah Aleman, Director of Assisted Housing; Kathy McCormick,
Development Services and Neighborhood Revitalization Officer).
6. Consideration and approval regarding Resolution 5331, authorizing an award of three contracts for
plumbing maintenance services for an annual cumulative amount not to exceed $1,400,000.00 to: First Aid
Plumbing Services (ESBE, HABE, MBE, SBE) for an annual amount not to exceed $466,666.67; A-Ram
Plumbing, Inc. (DBE, ESBE, HABE, MBE, SBE, HUB, Section 3 Business) for an annual amount not to
exceed $466,666.67; and Air Jireh Services (ESBE, HABE, MBE, SBE, Section 3 Business) for an annual
amount not to exceed $466,666.66; for a period of one year with the option to extend four (4) additional
one-year periods. (David Clark, Interim Deputy Director for Public Housing; Lawrence Fernandez, Interim
Director for Non Profit Housing).
7. Consideration and approval regarding Resolution 5333, authorizing an award of a contract for resurfacing
services on an “as needed basis” to EA Contractor, for an annual cumulative amount not to exceed
$95,000.00, for a period of one year. (David Clark, Interim Deputy Director for Public Housing; Lawrence
Fernandez, Interim Director for Non Profit Housing).
8. Consideration and approval regarding Resolution 5329, approving the 2013 payment standard schedule at
91-106% of the 2013 Fair Market Rents (FMRs) for the Housing Choice Voucher Program. (Deborah
Aleman, Director of Assisted Housing Programs).
INDIVIDUAL ITEMS FOR CONSIDERATION
9. Update and discussion regarding the March 26, 2013 Resident Services Committee meeting at Westway
Apartments. (Yolanda Hotman, Chair, Resident Services Committee).
10. Consideration and approval regarding Resolution 5338, authorizing the 4th Amendment to the Moving to Work
(MTW) agreement. (Richard Milk, Senior Planning and Policy Manager).
11. Consideration and approval regarding Resolution 5339, authorizing the adoption of the San Antonio Housing
Authority Minority/Women Business Enterprise (MWBE) program. (Alejandra Villarreal, Chief Administrative
Officer; Tomas Larralde, Director of Procurement.)
12. Consideration and approval regarding Resolution 5335 authorizing the refinancing of Converse Ranch I
Apartments in the amount of $7,443,700, the execution of all documents necessary for the refinancing; and
other matters in connection therewith. (Ed Hinojosa, Chief Financial Officer; Diana Kollodziej Fiedler,
Director of Finance and Accounting).
13. Consideration and approval regarding Resolutions 5337 and 13SEN-04-01, authorizing the refinancing of
Crown Meadows Townhomes in the approximate amount of $11,250,200, the execution of an application
letter with RED Mortgage Capital, LLC, the execution and submission to HUD of all documents necessary
to secure FHA Mortgage Insurance of the refinancing loan, the execution of a commitment to insure the
refinancing loan, and the negotiation and execution of all final documents necessary for the refinancing;
and other matters in connection therewith. (Ed Hinojosa, Chief Financial Officer; Diana Kollodziej Fiedler,
Director of Finance and Accounting).
14. Consideration and approval regarding Resolution 5341, authorizing the President and CEO to sign HUD
1044 forms, accepting the Choice Neighborhoods Implementation Grant Agreement. (Kathy McCormick,
Development Services and Neighborhood Revitalization Officer).
15. Consideration and appropriate action regarding Resolution 5340, authorizing approval of an interim
agreement with McCormack Baron Salazar (MBS) for predevelopment and related work to implement the
Wheatley Choice Neighborhoods Transformation Plan. (Kathy McCormick, Development Services and
Neighborhood Revitalization Officer).
16. President’s Report:



Update on the third and final phase of redevelopment of San Juan Homes
Update on award for SAHA logo
Update on the April 28 – May 1, 2013 TX-NAHRO conference in San Antonio





Update on the May 19-22 PHADA national conference in San Antonio
Update on the May 4 orchard planting
Update on the recent NAHRO legislative visits
Update regarding procurement activities
Event Calendar for April 2013-May 2013
17. *Closed Session:
Consultation with Attorney
Deliberate current and potential legal matters and litigation, pursuant to Texas Government
Code Sec. 551.071 (consultation with attorney).



Consultation with attorney regarding legal issues related to the renovations at Marie
McGuire Apartments.
Consultation with attorney regarding budgetary impact of sequestration and continuing
resolution on staffing
Consultation with attorney and take appropriate action regarding issues related to the Public
Housing Director.
Real Estate
Deliberate the management, purchase, exchange, lease or value of certain real properties and
obtain legal advice regarding related legal issues pursuant to Texas Government Code Sec.
551.072 (real property) and Texas Government Code Sec. 551.071 (consultation with attorney).
 Consultation regarding potential land leases within, and adjacent to, the Choice study
area.
Personnel
Deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or
dismissal of a public officer or employee or to hear a complaint or charge against an officer or
employee and obtain legal advice regarding related legal issues pursuant to Texas Government
Code Sec. 551.074 (personnel) and Texas Government Code Sec. 551.071 (consultation with
attorney).
 Discussion of CEO performance evaluation
18. Citizens to be Heard at 2:00 p.m. (may be heard after this time) Citizens wishing to speak on issues not
related to items posted on the agenda should personally sign the Citizens to be Heard roster prior to 3:00
p.m. Citizens will be given three minutes to speak. Only one appearance per speaker will be permitted
at any regular Board Meeting. If present, a speaker may cede time to another speaker, but no speaker
may have the floor for more than nine (9) minutes. Groups of citizens from the same organization are
asked to share nine minutes to address the Board on certain items. Organizations must be
represented by an officer or a Board member, and follow the same speaking rules as individuals.
The Board thanks you for coming to the meeting.
19. Adjournment.
Note: Whenever the Texas Open Meetings Act (Section 551.001 et seq. of the Texas Government Code) provides for a closed meeting in matters concerning legal advice,
real estate, contracts, personnel matters, or security issues, the Board may find a closed meeting to be necessary. For convenience of the citizens interested in an item
preceded by an asterisk, notice is given that a closed meeting is contemplated. However, the Board reserves the right to go into a closed meeting on any other item,
whether it has an asterisk or not, when the Board determines there is a need, and a closed meeting is permitted under Chapter 551 of the Texas Government Code that
permits the closed meeting. Additionally, the Board may take open session action on any item listed in closed session.
** Note: If a quorum of the Board of Commissioners attends the Committee Meeting, this meeting becomes a Special Meeting of the Board, but no Board action will be
taken other than recommendations to the full board, unless the full Board is present.
MINUTES
SAN ANTONIO HOUSING AUTHORITY
BOARD OF COMMISSIONERS
REGULAR BOARD MEETING
February 28, 2013
SCHEDULED: 2:00 p.m. at 818 S. Flores, San Antonio, Texas 78204
COMMISSIONERS PRESENT:
Ramiro Cavazos, Chair
Richard Gambitta, Commissioner
Charles R. Muñoz, Commissioner
Yolanda Hotman, Commissioner
Karina C. Cantu, Commissioner
Stella Molina, Commissioner
COMMISSIONERS ABSENT:
None
COUNSEL: Doug Poneck, Escamilla, Poneck & Cruz, LLP
TRANSLATOR: Vicky Cavazos Jones
STAFF:
Lourdes Castro Ramirez, President & CEO
Ed Hinojosa, Chief Financial Officer
Alejandra Villarreal, Chief Administrative Officer
Melanie Villalobos, Policy, Planning & Public Affairs Officer
Deborah Aleman, Dir. of Assisted Housing
Jo Ana Alvarado, Director of Information Technology
Diana Fiedler, Dir. of Finance & Accounting
Kathy McCormick, Development Services & Neighborhood
Revitalization Officer
Tomas Larralde, Dir. of Procurement
Paulette Owens-Holmes, Dir. of Human Resources
Tim Alcott, Director of Legal Services
Adrian Lopez, Dir. of Community Development Initiatives
David Clark, Deputy Director of Public Housing
Elvira Enriquez, Public Affairs Coordinator
Dolores Mueller, Public Affairs Secretary
David Casso, Mgr. of Development Services
Item 1:
Meeting called to order.
Chair Cavazos called the meeting to order at 2:18 p.m.
Item 2:
Pledge of allegiance.
Recitation of pledge.
Item 3:
Approval of minutes:
 Regular Board meeting held on February 14, 2013.
 Special Board meeting held on February 19, 2013. (Tour of Westside neighborhoods).
Motion:
Commissioner Hotman moved to approve the minutes as stated.
Commissioner Muñoz seconded the motion. Minutes approved.
Unanimous as follows:
Member
Aye
X
X
X
X
X
X
Nay
-1-
Absent
At Time of Vote
Abstained
CONSENT AGENDA: Items 4, 5, 6, 7, 8, and 9 were vetted through the appropriate committee and forwarded to the
full Board of Commissioners for final approval. The consent agenda items can be taken together as one vote or as
individual items. Agenda Item 8 was tabled for further discussion.
Item 4:
Consideration and approval regarding Resolution 5322, authorizing an award of a contract for
carpet cleaning services to Master Carpet Cleaning, for an annual cumulative amount not to
exceed $150,000.00, for a period of one year.
Approved on Consent Agenda.
Item 5:
Consideration and approval regarding Resolution 5329, ratifying the award of a contract for the
purchase and installation of security cameras at Lincoln Heights Courts for an amount not to
exceed $125,000.
Item 6:
concrete and asphalt maintenance, repair and replacement, on an as needed basis, to Myers
Concrete Construction, LP, for an annual cumulative amount not to exceed $150,000.00, for a
period of one year with the option to extend (2) two additional one-year periods.
Item 7:
Consideration and approval regarding Resolution 5325, authorizing an award of contracts for
carpet replacement and installation services for an annual cumulative amount not to exceed
$288,000.00 to the following three companies: Impact Floors of Texas for an annual amount not to
exceed $96,000.00; Redi Carpet Sales of Houston for an annual amount not to exceed $96,000.00;
and The Sherwin-Williams Company for an annual amount not to exceed $96,000.00; for a period
of one year with the option to extend two (2) additional one-year periods.
Item 8:
Consideration and approval regarding Resolution 5323, authorizing an award of a contract for tree
trimming services to Rios Tree Service, Inc., for an annual cumulative amount not to exceed
$150,000.00, for a period of one year.
Tabled for further discussion.
Item 9:
irrigation maintenance and repair services to R & C Landscape, LLC, for an annual cumulative
amount not to exceed $100,000.00, for a period of one year.
Motion:
Commissioner Gambitta moved to approve Agenda Items 4, 5, 6, 7, and 9 as stated. Agenda Item 8 was
tabled. Commissioner Molina seconded the motion.
Member
Aye
X
X
X
X
X
X
Nay
-2-
Absent
At Time of Vote
Abstained
Chair Cavazos noted, on Agenda Item 8, that SAHA needs to widen the scope of all those on the
Advertisement List so all have an equal opportunity to bid on SAHA contracts. Tomas Larralde, Director
of Procurement, offered to meet with his staff and review the lists. It was also suggested that the name of
the contact person and their phone number be added.
Item 10:
San Juan Homes – Phase III:
 Update and discussion regarding the third and final phase of the San Juan redevelopment
project.
 Consideration and approval regarding Resolution 5328, 13FAC-02-01, and 13FIN-02-01
authorizing the San Juan Phase III transaction including: (i) the execution of all documentation
necessary to carry out the transaction; (ii) a loan to San Juan III, Ltd. of Replacement Housing
Factor Funds; (iii) the sale of the land to San Antonio Housing Facility Corporation (“SAFC”)
and the lease of the land for the transaction to San Juan III, Ltd.; (iv) the acquisition of the
membership interest by SAFC in SAHA San Juan III, LLC; (v) authorizing San Antonio Housing
Facility Corporation to serve as the General Contractor; (vi) the issuance of San Antonio
Housing Finance Corporation Multifamily Housing Revenue Bonds (the San Juan Phase III
Apartments Project), Series 2013; (vii) the borrowing of City of San Antonio HOME Funds; (viii)
obtaining Texas Department of Housing and Community Affairs tax credits; and other matters
in connection therewith.
This action is to request authority from the Board of Commissioners for SAHA to enter into a development
agreement with NRP Group LLC, as well as authorize the issuance of bonds and secure other debt
financing for the project. The project will consist of 252 family units, with 63 public housing units serving
30% AMI; 31 local set aside (aka PBV) voucher units; and 158 low income housing tax credit units serving
60% AMI at 300 Gante Walk and 2001 South Zarzamora. The non-smoking, multi-family project will be built
to Build San Antonio Green Level II. Construction is projected to begin August 2013, with completion by
November 2014. The Board is being asked to authorize all of the actions necessary to finance and
construct the project.
Motion:
Commissioner Gambitta moved to approve Resolutions 5328, 13FAC-02-01, and 13FIN-02-01 as stated.
Commissioner Molina seconded the motion.
Member
Aye
X
X
X
X
X
X
Nay
Absent
At Time of Vote
Abstained
Chair Cavazos recessed the Regular Board meeting at 2:25 to convene the San Antonio Housing Facility Corporation
meeting and the San Antonio Housing Finance Corporation meeting. Chair Cavazos reconvened the Regular Board
meeting at 2:28 p.m.
INDIVIDUAL ITEMS FOR CONSIDERATION:
Item 11:
Update and discussion regarding the February 19, 2013 Resident Services Committee meeting at
Lincoln Heights.
Commissioner Hotman reported that a Resident Services Committee meeting was held on February 19,
2013 at Lincoln Heights Courts. Attendees included Chair Yolanda Hotman, Commissioner Charles
Muñoz, Board Counsel Doug Poneck, SAHA President and CEO Lourdes Castro Ramirez, SAHA staff,
representatives from area schools, and Urban Connections. Approximately 20 residents attended the
meeting.
-3-
The following topics were discussed at the Lincoln Heights meeting: the Lincoln safety grant;
neighborhood block walks; public housing rent statements; resident council fundraising activities; resident
handbook; final phase of San Juan III; revitalization of the five neighborhoods of the Mirasol Project; and
the community survey which is distributed to all residents in the Neighbors publication.
Commissioner Hotman stated the new lighting at Lincoln has been installed and the residents are very
pleased with the lighting upgrades.
Commissioner Molina asked if the Resident Handbook is going to be available in Spanish. Ms. Castro
Ramirez informed the Board the translator is currently working on the Spanish edition of the handbook
and it would be available soon.
Item 12:
Update and discussion regarding the installation of Wi-Fi and internet access to the community
rooms at 30 public housing sites.
Mr. Lopez reported that one of SAHA’s six primary strategic goals is to “empower and equip families to
improve their quality of life and achieve economic stability.” This Wi-Fi initiative will address this strategic
goal by providing access to educational assistance, job training and employment opportunities, as well as
health and wellness resources.
SAHA will provide Internet and computer access to hundreds of public housing residents with the
installation of free Wi-Fi in the community rooms of select SAHA properties.
Ms. Alvarado stated the scope of work for the 1st phase of this initiative includes:



Providing WiFi to 30 SAHA communities:
 WiFi will be available to residents on computers installed in community rooms;
 WiFi will be available to residents in the community centers for those residents that have personal
devices that will connect wirelessly;
 WiFi will be secured in accordance with SAHA security policies;
Installing a minimum of 2 computers with wireless connectivity in 30 of the community rooms of select
sites; and
Establishing a minimum of 3 “learning centers” in select communities (defined as where partners will
provide on-site services utilizing the Wi-Fi and computer infrastructure)
Phase I should be completed by the end of March 2013.
Staff has identified several issues that still need to be resolved. These include:
 Addressing any liability issues associated with use of computers and Wi-Fi, such as implementing
tighter security measures at the desktop level and firewall level.
 Securing of additional partners to program learning centers.
(To date our partners are Career and Technology Academy Charter School, Restore Education,
Gateway to College and AARP. These groups have made commitments to partner with SAHA to
provide ongoing support and educational services utilizing the learning centers.
 Researching and securing grant funds to expand and enhance the initiative; and
 To develop metrics to evaluate the success of the initiative.
Commissioner Gambitta asked about the need for individual login IDs and passwords. Ms. Alvarado
stated the property manager and property staff could be able to provide a common login ID for the
resident and the resident could have their own password to access the computer.
Commissioner Muñoz asked if our system will be linked with some websites so that students and their
parents will have the ability to access applications for scholarships and college readiness programs. Staff
confirmed that some links would be pre-loaded as short-cuts on the provided computers.
Ms. Castro Ramirez added that anyone who has their own WI-FI device can use the WI-FI system if they
are within range of the community room.
-4-
Ms. Castro Ramirez added that staff will look at best practices for security for similar Wi-Fi systems, and
will report back to the Board with additional information.
Chair Cavazos asked who on the SAHA staff will go to sleep and wake up excited about this project.
Who will be in charge?
Ms. Castro Ramirez stated that the day-to-day management of the sites and programs will be the
responsibility of Adrian Lopez and his staff. While this is a Community Development Initiative, Mr. Lopez
will need assistance from the property managers and the IT department.
Commissioner Gambitta stated he wanted to go on the record to state the importance of this service,
which is becoming increasingly essential to households; whether there are children in school; whether
they are seniors or veterans.
Chair Cavazos introduced Dr. Sylvester Perez, the interim SAISD superintendent. Dr. Perez offered
comments in support of this initiative and the great benefit is brings to SAISD children and their parents
Ms. Castro Ramirez requested the Board allow the staff to conduct additional research on the concerns
brought forth by the Board today, and report back at a later date.
Item 13:
Update and discussion regarding the 2013 NAHRO Legislative Conference and Congressional
Agenda.
Ms. Villalobos briefed the commissioners on the upcoming NAHRO Conference that is scheduled for
March 17-20, 2013 in Washington D.C. SAHA’s Policy, Planning and Public Affairs staff is currently
developing the messages that the agency will deliver to elected officials, to include:



Item 14:
SAHA’s new vision, mission and strategic plan;
Investments being made through Wheatley Choice Neighborhoods, The Park at Sutton Oaks, San
Juan III, and the new Victoria Commons master plan; and
The impact of federal budget cuts to SAHA’s housing programs and those served by those programs,
as well as support for a separate housing authority allocation in the Low Income Housing Tax Credit
program, and support of HUD’s Rental Assistance Demonstration program and the proposed National
Housing Trust Fund.
Update and discussion regarding Finance Committee accomplishments and objectives for 2013.
Commissioner Cantu, chair of the Finance Committee, identified the accomplishments achieved by the
committee and staff during 2012. The Finance Committee held eight meetings during 2012 with
discussions regarding numerous matters affecting the finances of the SAHA.
Accomplishments include:
 Adopted the Internal Audit Charter.
 Oversaw efforts to improve the performance of properties in the mixed-income portfolio
 Adopted the Internal Audit Plan for FY 2012-2013.
 Received multiple briefings on the current federal funding environment and the impact to SAHA
operations.
 Received updates on the status and progress of items in the Internal Audit Plan and other activities of
the Internal Audit Department.
 Oversaw the development of the FY 2012-2013 agency budgets, including a budget workshop.
 Approved certification of SAHA’s investment policy and investment strategies.
 Oversaw the third-party audit, which resulted in a very favorable audit report, with no significant
findings.
 Participated in Rental Housing Development Finance training through the National Development
Council.
Commissioner Cantu stated she looks forward to working with SAHA staff and the other commissioners to
continue to strengthen these accomplishments in the coming year.
-5-
Item 15:
Consideration and approval regarding Resolution 5314, in support of the Amendment and
Restatement of the Housing Authority of the City of San Antonio Employees’ Money Purchase
Pension Plan and Trust Restated effective January 1, 2013.
Ms. Villarreal stated that the Plan was amended and restated effective July 1, 1993, effective January 1,
1998, and again effective January 1, 2008, and the 2008 restatement has been amended four times. In
order to maintain the Plan’s qualified status under Section 401(a) of Internal Revenue Code (“Code”) it is
necessary to amend and restate the plan to meet all applicable requirements of the Code and Treasury
Regulations.
Motion:
Chair Cavazos moved to approve Resolution 5314 as stated.
Commissioner Gambitta seconded the motion.
Member
Aye
Item 16:
Na
y
Absent
At Time of
Vote
Abstained
X
X
X
X
X
X
Update and discussion regarding the San Antonio Housing Authority Internal Audit department.
Tabled.
Item 17:
Update and discussion regarding the Financial Report for the San Antonio Housing Authority for
the six months ended December 31, 2012.
Mr. Hinojosa and Ms. Fiedler provided an update on the SAHA current budget status. The Condensed
Statements of Revenue and Expense for the period reflects Net Revenue and Total Operating Expenses
ended the period below budget at 4.04% and 4.46%, respectively.
Operating Expenses ended the period $3.4 million below budget due primarily to lower than expected
expenditures for salaries and benefits, consulting, technology and licensing, utilities, and telephone. The
favorable variance for salaries and benefits can be attributed to unfilled positions in all sectors.
The agency also saw a $2.3 million positive swing in Non-Operating income, due primarily to the sale and
loan forgiveness of the Park Place mortgage debt. As a result of these activities, agency operations
ended the quarter $2.3 million above budget expectations.
Item 18:
Update and discussion regarding the deficit analysis for Sendero I PFC (Legacy at Crowne
Meadows).
Mr. Hinojosa and Ms. Fiedler provided an analysis of the budgetary operations at Sendero, as requested
by the Finance Committee. This review includes current operations and projections for collectability of
amounts due.
The analysis determined Sendero’s operating performance has improved during the current fiscal year
and shows Sendero is currently meeting its Debt Service Coverage Ratio requirement of 1.15. However,
it is only estimated to produce $26,000 in current year cash flow. In addition to the $26,000 in operating
cash flow, the analysis also uncovered additional reserve funds, which can be used to pay down the
project’s intercompany balances.
-6-
The combination of operating cash and release of reserves is estimated to decrease the project’s
intercompany balance to an estimated $131,000 by fiscal year end. If the current operating trend
continues, the project will pay off all of its intercompany balance within 2.5 years.
After an analysis of the Series A and Series B Bonds which will be available for redemption beginning
June 1, 2013 at 102% of the principal balance, staff is requesting to refinance the bonds which could
realize annual savings somewhere in the realm of $300,000. Staff believes it is in the best interest of the
project to refinance the current debt, and is currently in the process of putting together a portfolio of
information that can be provided to financial institutions to determine options for refinancing. Once the
portfolio is compiled and reviewed, staff will bring the information back to Committee and/or the full Board
for review and final approval.
Item 19:
President’s Report:
 Update on the Housing Choice Voucher Family Self-Sufficiency funding
 Update on the February 13 Wheatley Choice Neighborhoods celebration
 Update on SAHA's new Procurement Director
 Update on FY2014 MTW planning efforts
 Update regarding March 5 meeting with SAISD and Promise Neighborhood
 Update regarding March 11-12 Joint Site Visit of Departments of HUD, Education and Justice
 Update on the new community garden at O.P. Schnabel Apartments
 Update regarding procurement activities
 Event Calendar for March 2013-April 2013
Item 20:
*Closed Session:
Consultation with Attorney
 Consultation with attorney regarding legal issues related to the renovations at Marie McGuire
Apartments.
 Consultation with attorney regarding jurisdictional issues relating to housing in accordance with
local government code sec 392.017 (B).
 Consultation with attorney regarding the Texas Qualified Action Plan (QAP).
 Consultation with attorney and status report regarding issues related to the Public Housing Director.
 Consultation with attorney regarding employment litigation.
Personnel
 Discussion of CEO evaluation process
Chair Cavazos recessed to closed session at 3:34 p.m. The meeting reconvened at 4:50 p.m.
There were no votes were taken.
Item 21:
Citizens to be heard at 3:00 p.m
Suzan Baldwin
Item 22:
Sam Cardenas
Adjournment.
With no objections, Commissioner Gambitta adjourned at 5:43 p.m.
ATTEST:
_________________________
RAMIRO CAVAZOS
CHAIR
________________________________
LOURDES CASTRO RAMIREZ
SAHA PRESIDENT and CEO
________________________
DATE
-7-
____________________
DATE
April 4, 2013
RESOLUTION 5332, AUTHORIZING THE 2013-2014 MOVING TO WORK (MTW) AGENCY
PLAN, INCLUDING REVISIONS TO THE MTW PLAN, THE PUBLIC HOUSING ADMISSIONS
AND CONTINUED OCCUPANCY POLICY (ACOP), THE HOUSING CHOICE VOUCHER
ADMINISTRATIVE PLAN AND THE CAPITAL FUND PROGRAM.
,~
LourdeS Castro Ramirez
President and CEO
Senior Policy & Planning Manager
REQUESTED ACTION:
Consideration and approval regarding Resolution 5332, authorizing the 2013-2014 Moving to
Work (MTW) Agency Plan, including revisions to the MTW Plan, the Public Housing Admissions
and Continued Occupancy Policy (ACOP), the Housing Choice Voucher Administrative Plan
and the Capital Fund Program.
PURPOSE:
To move forward with the implementation of the Moving to Work program and revisions to the
policies governing SAHA's Public Housing, Housing Choice Voucher and Capital Fund
programs.
FINANCIAL IMPACT:
Under SAHA's MTW Plan, Public Housing, Non-Profit Housing, Housing Choice Voucher
Program and Capital Fund resources are all combined into a single fund with full funding
flexibility. All MTW initiatives will continue to be funded from this single fund.
SUMMARY:
Due to SAHA's designation as a Moving to Work (MTW) agency, SAHA's MTW Agency Plan
serves as the agency's long-term and annual business plan, which is required to be submitted
to the U. S. Department of Housing and Urban Development (HUD). The MTW Agency Plan
has four sections:
. MTW Plan
.
.
.
Public Housing Admissions and Continued Occupancy Policy (ACOP)
Housing Choice Voucher Administrative Plan (Admin Plan)
Capital Fund Program Plan
Following a number of conversations with HUD MTW staff, meetings with residents and
stakeholders, and internal analysis, the final proposed agency plan includes the following
activities and revisions.
Proposed Changes to MTW Plan for FY 2013-2014
I.
Changes to Current Activities
A. FY2011-1e Preservation and Expansion of Affordable Housing
AgendaItem No.5
.
April 4, 2013
Revise metrics to focus on housing affordable to households earning <60% AMI not public housing or voucher
B. FY2011-2 Simplify and streamline HUD approval process for the development,
redevelopment, and acquisition of public housing
.
Close out activity due to expedited closing times for most recent development
C. FY2013-2 Simplified Earned Income Disregard (EID)
.
.
First year 100% EID, escrow starting year 2
Pending availability of new NOFA that includes MTW flexibility language
D. FY2013-3 Standardize Section 8 and Public Housing Inspection Processes
.
HUD is testing at other PHAs
.
On hold until SAHA can review HUD findings
E. Three existing PBV-related MTW Activities (FY2011-6 Commitment of project-based
vouchers (PBV) to SAHA-owned or controlled units with expiring subsidies, FY2011-7
Remove limitation of commitment on PBV so that PBV may be committed to more than
25% of the units in family developments without required provision of supportive
services, FY2011-8 Revise mobility rules for PBV)
.
.
II.
Expand language to apply beyond Springhill
Consolidate into one or two new activities with shared metrics
Proposed New Activities
A. FY2014-1 Streamline Recertification
.
Requirements and Methods (HCV)
Consolidates previous activities FY2011-4 and FY2011-5, allowing for easier
tracking, greater implementation flexibility, and increased focus on outcomes
B. FY2014-2 Path to Self Sufficiency
.
.
.
Establishes a requirement that applicants complete a set of courses upon admission
to public housing or HCV
Provides skills training to equip residents to become successful residents
Establishes formal and effective partnerships with outside agencies to provide a
portion of the curriculum
.
Establishes expectations early, supports culture of "Moving to Work" and minimizes
crisis situations
.
Allows for tiered level of services
C. FY2014-3 Faster Implementation of Payment Standard Decreases (HCV)
.
Implementat next annualor interimrecertification,instead of waiting for 2nd Annual
Recertification
D. FY2014-4 Biennial Recertification's (HCV)
.
All participants
go to Biennial recertification
(currently only Elderly/Disabled
on fixed
income)
E. FY2014-5
TriennialRecertification's
(HCV)
2
April 4, 2013
.
Elderly/Disabled on fixed income go to Triennial recertification
F. FY2014-7RentSimplification(HCV)
.
Calculate rent at 27.5% of gross income instead of higher of 30% of adjusted
income/10% of gross income/minimum
.
$50 rent
Eliminate deductions
Alternative Implementation
A. Reportin Sourcesand UsesSection,insteadof MTWActivitySection
.
Promote Education through Partnerships
.
.
.
Resident Ambassador Program
Comprehensive Resident Training and Employment Partnership
Urban Farm/Community
Supported Agriculture
B. Implement outside MTW
.
.
Designated Housing (use established HUD guidance)
Preferred Communities
Other Changes
A. New RHF Plan Appendix added to MTW Plan
B. Allows SAHA to use second-increment of RHF as part of MTW Block Grant
Housing Choice Voucher (HCV) Administrative Plan proposed revisions for FY 2013-2014
1. Updates reflecting changes in federal regulations and state and local law
a. Definitions: LGBT Final Rule (3-I.B.), homeless (4-III.C.).
b. Prohibit tenancy evictions for SAHA's failure to pay subsidy to the landlord (121.0.)
c. Remove requirement for written notice to the owner prior to contract termination,
in cases where the family is evicted or vacates prior to the contract termination
date (13-II.E.)
2. Clarify
a.
b.
c.
certain policies
Further define the Veterans and Homeless local preferences (4-III.C.)
Clarify when a full-time student is considered a family member (6-I.B.)
Require documentation to support a family's claim that the Head of Household is
permanently absent from the unit (7-11.0.)
d. Clarify when SAHA will provide a 30-day notice of HAP contract termination to
the owner (8-II.G.)
i. Federal regulations require immediate contract termination in some cases
e. Elaborate the requirements for SAHA to process landlord evictions of program
participants (12-III.C.; 13-II.C.)
3. Reduce unnecessary resource expenditures
a. Narrow the circumstances in which SAHA will assign more than one bedroom per
two persons in the household (5-11.8.)
b. Apply the IRS dollar limit to child care expense deduction (6-II.F.)
3
April 4, 2013
c. Require itemized expense statements from families who claim zero income
status (7-111.1.)
d. Allow for landlord and tenant self-certification of corrective actions for minor HQS
deficiencies (8-11.F.)
e. Limit the types of relatives that are permitted to lease to program participants
(13-1.0.)
4. Refocus on Housing Quality Standards
a. Refocus local Housing Quality Standards (HQS) requirements (Chapter 8)
b. Suspend the voucher term when a participant submits a Request for Tenancy
Approval (5-11.E.)
i. Reduce the number of program terminations due to voucher expiration,
when units do not pass inspection
c. Allow for landlord and tenant self-certification of corrective actions for minor HQS
deficiencies (8-11.
F.)
d. Allow SAHA to conduct mail-in reexaminations (11-1.8.)
e. Allow SAHA to terminate a participant's housing assistance for causing damage
to a unit after the HAP contract expires (12-1.0.)
f. Allow participants to report changes in income or family composition by mail or
fax (11-11.0.)
g. Prohibit tenancy evictions for SAHA's failure to pay subsidy to the landlord (121.0.)
Public Housing Admissions
revisions for FY 2013-2014
and Continued
Occupancy
Policy (ACOP) proposed
1. Pre-Application
. Page 19, Section 0 - Application Procedure
0
The pre-application will be submitted electronically through the SAHA
website.
0
0
0
Applicantswill be ableto selectpropertieswherethey would like to live.
Applicantscan applyto as manydevelopmentsas they qualifyfor.
The Waiting List will be temporarily unavailable after the maximum wait
period of 12 month.
2.
.
Transfer Policy
Page 36, Section VII - Transfer Policy
0
Residentswill be able to submita Requestfor Transferelectronicallythrough
the SAHA website.
0
Applicantswill be ableto selectpropertiesthey would like to live at.
3.
Flat Rent and Utility Allowance (UA)
.
.
Page 30, Section C - Flat Rent update
4.
Simplified Earned Income Disregard (EID)
Page 31, Section 0 - Simplified Earned Income Disregard
.
Page 32, Section G - Utility Allowance update
0
Self-sufficiencyprogramsincludethe FamilySelf-SufficiencyProgramor the
Jobs Plus Program.
4
April 4, 2013
Capital Fund Program (CFP)
1. $10,152,547 of projects in planning stages and in progress in FY 2013-14 from previous
CFP years.
2. Major items within 2013 CFP Annual Statement include:
Property
Alazan Apache
Lincoln Heights
Cassiano Homes
Jewett Circle
Villa Tranchese
Fair Avenue
Westway
Activity
Site Improvements
Site Improvements
Site Improvements
Exterior Improvements
Basement Drainage
Improvements
Safety & Alarm System
Upgrades
Waste Water System
Cost Estimate
Status
$150,000
$100,000
$150,000
$212,875
$70,000
Scope
Scope
Scope
Scope
Scope
$705,654
Scope Under Review
$ 405,226
Scope Under Review
Under Review
Under Review
Under Review
Under Review
Under Review
UpClrades
Total:
-. ...-.-. ..-...Property
Williamsburg
TarryTowne
Madonna
SaharaRamsey
. ....-- .-.
Activity
$1,793,755
...... - . . - - -. ---..- -. - -----. ----. ---- -
Cost Estimate
UpgradeDuctsandFurnace
Vents
$ 90,000
$ 710,084
ExteriorImprovements
Exterior& Site
$447,473
Improvements
Reroofinq
$50,000
Total:
$1,297,557
Status
Scope Under Review
Scope Under Review
Scope Under Review
Scope Under Review
M
Property
Escondida
Activity
Cost Estimate
Status
Cisneros
Escondida
Installation
of NewWindows
Installation
of NewWindows
$290,000
$100,000
$80,000
Scope Under Review
Scope Under Review
Scope Under Review
$567,000
$271,602
$162,000
Scope Under Review
Scope Under Review
TarryTowne
Madonna
JewettCircle
LilaCockrell
LindaLou
Parkview
SaharaRamsey
FrankHornsby
LilaCockrell
SunPark
Installation
of NewWindows
Installation
of NewWindows
Installation
of NewWindows
$410,000
$46,000
Scope Under Review
Scope Under Review
Scope Under Review
$290,000
$125,153
Scope Under Review
Scope Under Review
Foundation
Stabilization
$70,000
$176,000
Scope Under Review
Scope Under Review
Foundation
Stabilization
$210,000
Scope Under Review
Installation
of NewWindows
Installation
of NewWindows
Installation
of NewWindows
& Doors
Foundation
Stabilization
5
April 4, 2013
Kenwood
North
OlivePark
Guadalupe
Block
WilliamSinkin
Parkview
Foundation
Stabilization
Reroofing/Foundation
Stabilization
$93,000
Scope Under Review
$325,000
Scope Under Review
Reroofing
$100,765
$45,000
Scope Under Review
Scope Under Review
Scope Under Review
RoofingUpgrades
RoofResurfacing
Williamsburg
MattGarcia
$78,424
$100,000
Scope Under Review
Scope Under Review
HVAC/ WalkwayUpgrades
$385,000
HVACUpgrades
$25,000
SiteImprovements
Total:
$3,949,944
Sprigview
Seniors
Scope Under Review
MTW Sources and Uses
The 2014 operations budget is derived using 2013 budget and MTW Reserves. Capital sources
and uses are updated based on the most current information
provision for sequestration in this budget.
.
.erop2sed_c;onsolida.~~d
available. Also, there is no
Sour<:~~...<I..I'1.d.l:Ises
of .MTW~nd!>
..~_.
Fiscal YearEnding June 30,2014
. ..
..,
.',_.., ._"
,..J..".
HCV Block Grant (HAP_& Adf!1inis!r:,ativefees)
Public Housing Ope@!ing S.!:J.bsidl..
Public, Housing Ren~! & Ot~er Income ..
Pu~li<;."H<?,~,sing
,<:::,~E!!.a.l,GrC!!!ts
$9,400,9811
,_."
$5,052,790'
,.'
""""-- .,..f.
Replacement Housi!!gFac!.or Gr~nts- ~nd Inc.r:.ement
I
,
Capita/~Oth.e!
Prioritif:l~:'
F:~pJlcJ:!°u~Caeital
Us~
Capit~!lJ~es of Ml\I\I. Reserve ~nds
$14,453,771"
.
.
,"., .." '" '" """ """
(net of SelfSufficien<;y & HCV Activities)
""'"''''''''''''''''''''--1'''
$5,000,0Q.Q"
Funding,for three p.l!()ritie~ (per.note 4 below)
Salaries
... & Benefits
, ".,._, "''''
$5,1 Qo,Qooi
$16,416,478
$6,397,654
RE:!pair& Maintena~ce
Utilities
Insurance
. ....""....
., . "..,.." """
...,
. -~
~...
..
. .
O.t~.~~,Ex~nses (1~ludes..tech.':'.ology/.!!.censingfees,(;~mputer/tel~phon~~consultingfe.~
Manag~r:!le.ntFees ...
..
...
. .~
Expen~e. for Hg,.,Vpr.~gram..
"
, ,...$5~ 782,5381
$687,897
$1,331,491 '
$2,6Q8,69?i
$9,532,099'
, ...$89,~11 ,6781
.,<:::.2!:'lplian(;e.Programs, ,. -,.. .""
..,.. ,.
.Self-~~fficiency Actiyities incluqing Gra"nt Matc~ing" Funds
$19&~?2
$1 , 1 og,.oOO
Property
Activity
Cost Estimate
Status
Alazan Apache
Site Improvements
Site Improvements
$150,000
Scope Under Review
$100,000
Scope Under Review
Lincoln Heights
6
Cassiano Homes
Jewett Circle
Villa Tranchese
Fair Avenue
Westway
Site Improvements
Exterior Improvements
Basement Drainage
Improvements
Safety & Alarm System
Upgrades
Waste Water System
UDorades
Total:
April 4, 2013
$150,000
$212,875
$70,000
Scope Under Review
Scope Under Review
$705,654
Scope Under Review
$ 405,226
Scope Under Review
Scope Under Review
$1,793,755
Timeline:
.
.
.
.
.
.
.
.
.
.
August to December 2012 - SAHA staff met on various occasions to discuss potential
new MTW activities
November 14,2012 and December 19,2012 - MTW Advisory Board met to discuss new
activity priorities
January 2013 - Staff will meet to finalize the selection of new activities, taking into
account research and Advisory Board input
January16, 2013 - 3rdMTW Advisory Board
January 31, 2013 - HUD site visit
February 13, 2013 - 4th MTW Advisory Board Meeting and 15t HCV Landlord and
Participant Meeting
February19,2013 - 2ndHCV Landlord and Participant Meeting
February 20, 2013 - Presentation to Public Housing Resident Council Meeting
February22, 2013 - 3rdHCV Landlord and Participant Meeting
The final MTW and program plans will be presented to the Operations and Human
Resources Committee on March 21, 2013 and to the Board of Commissioners on April 4,
2013.
ATTACHMENTS:
Resolution 5332
7
April 4, 2013
Resolution 5332
RESOLUTION 5332, AUTHORIZING THE 2013-2014 MOVING TO WORK (MTW)
AGENCY PLAN, INCLUDING REVISIONS TO THE MTW PLAN, THE PUBLIC
HOUSING ADMISSIONS AND CONTINUED OCCUPANCY POLICY (ACOP), THE
HOUSING CHOICE VOUCHER ADMINISTRATIVE PLAN AND THE CAPITAL FUND
PROGRAM.
WHEREAS, the Board of Commissioners of the San Antonio Housing Authority, a public
instrumentality created pursuant to the laws of the State of Texas (“SAHA”) approved the
2013-2014 Moving to Work (MTW) Agency Plan for fiscal year 2013-2014 including the
revised MTW Plan, Public Housing Admissions and Continued Occupancy Policy (ACOP),
the Housing Choice Voucher Administrative Plan and the Capital Fund Program; and
WHEREAS, the Board of Commissioners of the San Antonio Housing Authority now
desires to authorize the submission of the 2013-2014 MTW Agency Plan to the U.S.
Department of Housing and Urban Development (“HUD”); and
WHEREAS, the Board desires to authorize the Chairman and the President and CEO to
execute and submit to HUD such certifications and other documents that they deem
necessary or advisable in connection with the submission of the MTW Agency Plan.
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of
SAHA hereby:
1) Approves Resolution 5332 authorizing Fiscal Year 2013-2014 Moving to Work
Agency Plan and revised MTW Plan, Public Housing and Continued Occupancy
Policy (ACOP), the Housing Choice Voucher Administrative Plan, and the Capital
Fund Program, and their submission to HUD.
Passed and approved the 4TH day of April 2013.
_____________________________
RAMIRO CAVAZOS
CHAIR, BOARD OF COMMISSIONERS
Attested and approved as to form:
______________________________
SAHA PRESIDENT AND CEO
April 4, 2013
RESOLUTION 5331, AUTHORIZING AN AWARD OF THREE CONTRACTS FOR PLUMBING
MAINTENANCE SERVICES ON AN "AS NEEDED BASIS," FOR AN ANNUAL CUMULATIVE
AMOUNT NOT TO EXCEED $1,400,000.00 TO: FIRST AID PLUMBING SERVICES (ESBE, HABE,
MBE, SBE) FOR AN ANNUAL AMOUNT NOT TO EXCEED $466,666.67; A-RAM PLUMBING,
INC. (DBE, ESBE, HABE, MBE, SBE, HUB, SECTION 3 BUSINESS) FOR AN ANNUAL AMOUNT
NOT TO EXCEED $466,666.67; AND AIR JIREH SERVICES (ESBE, HABE, MBE, SBE, SECTION
3 BUSINESS) FOR AN ANNUAL AMOUNT NOT TO EXCEED $466,666.66; ALL FOR A PERIOD
OF ONE YEAR WITH THE OPTION TO EXTEND FOUR (4) FOUR ADDITIONAL ONE-YEAR
PERIODS.
~.
\
~~
...
\/
~
r
..
17
Interim Deputy Director for
Public Housing
Lawrence Fernandez
Interim Director for Non pfofit Housing
REQUESTED ACTION:
Consideration and approval regarding Resolution 5331, authorizing an award of three contracts for
plumbing maintenance services for an annual cumulative amount not to exceed $1,400,000.00 to:
First Aid Plumbing Services (ESBE, HABE, MBE, SBE) for an annual amount not to exceed
$466,666.67; A-Ram Plumbing, Inc. (DBE, ESBE, HABE, MBE, SBE, HUB, Section 3 Business) for
an annual amount not to exceed $466,666.67; and Air Jireh Services (ESBE, HABE, MBE, SBE,
Section 3 Business) for an annual amount not to exceed $466,666.66; for a period of one year with
the option to extend four (4) additional one-year periods.
PURPOSE:
To provide plumbing maintenance services on an as-needed basis for the San Antonio Housing
Authority Public and Non Profit Housing developments. This aligns with SAHA's priority to improve
the quality of life for our residents and preserve our existing affordable housing assets.
FINANCIAL IMPACT:
The annual cost for plumbing maintenance services is not expected to exceed an annual cumulative
amount of $1,400,000.00 and will be funded through the approved operating budgets.
SUMMARY:
On August 8, 2012, SAHA issued an "Invitation For Bids" (IFB) #1206-910-60-3839 for Plumbing
Maintenance Services, which closed on August 28, 2012. The IFB was published on our website,
Electronic State Business Daily (ESBD), La Prensa, the Express News and various other venues (See
Advertisement List). A total of four (4) proposals were received in response to the IFB: Air Jireh
Services, A-Ram Plumbing, Inc., My Plumber, Inc. dba J.R.'s Plumbing, and The Brandt Companies,
LLC. All proposals were evaluated based on cost.
First Aid Plumbing Services (ESBE, HABE, MBE, SBE), A-Ram Plumbing, Inc. (DBE, ESBE, HABE,
MBE, SBE, Section 3 Business) and Air Jireh Services (ESBE, HABE, MBE, SBE, Section 3
Business) were the lowest responsive and responsible bidders and are therefore recommended for
award. (See attached cost Analysis).
A-Ram Plumbing, Inc. has been certified as a DBE, ESBE, HABE, MBE and SBE by the South
Central Texas Regional Certification Agency and a HUB by the State of Texas. They have also been
certified as a Section 3 business by SAHA. A-Ram Plumbing, Inc. has previously been awarded
contracts by SAHA for plumbing maintenance and repair services. This contractor indicates usage of
the following subcontractors for landscape, irrigation and ground maintenance: R & C Landscape
(ESBE, HABE, MBE, SBE, Section 3 Business) and Fairway Landscape & Nursery, Inc. (HABE, MBE,
Agenda Item No.e
April 4, 2013
SBE, VBE). Their material supplier will be AII-Tex Pipe & Supply, Inc. (WBE), and for plumbing and
landscaping material it will be Timm's Trucking & Excavating, Ltd. (MBE, SBE). Their Section 3
Program Good Faith Effort Compliance Plan includes a 30%-33% goal for Section 3 new hires.
Air Jireh Services is certified as an ESBE, HABE, MBE, and SBE by the South Central Texas
Regional Certification Agency and a Section 3 Business by SAHA. This Contractor has previously
been awarded contracts by SAHA for gas supply upgrades at Cassiano and interior gas upgrades at
Lincoln. Their Section 3 plan includes hiring one apprentice.
First Aid Plumbing Services has received certification as an ESBE, HABE, MBE and SSE by the
South Central Texas Regional Certification Agency. This Contractor's Section 3 Compliance Plan
includes hiring two laborers and one trainee.
ATTACHMENTS:
Company profile
Resolution 5331
Bid Tab
Advertisement List
Air Jireh Services
Company Profile
Air Jireh Services has been servicing San Antonio for over twenty years for any
air conditioning or plumbing problems. They have their own plumbing engineers
that constantly keep current with energy efficient and economical designs. They
currently have the annual service contract for the San Antonio Libraries and the
Bexar County Court House. They stay up to date with any changes in the Texas
Mechanical Code and City Regulations. We bring practical experience and
technical skills to our customers. They service existing systems and can design
and install new systems. Air Jireh Services is a SBE, MBE, and Section 3
certified business.
A-RAM Plumbing
Company Profile
A-RAM Plumbing is a SBE, MBE and Section 3 certified business specializing in
plumbing construction services and repairs. They are located in San Antonio.
They have a full time staff of nine. A-RAM Plumbing was founded in 1998 by
Albert and Patricia Ramirez. A-RAM does work for the San Antonio Water
System and US General Services Administration. A-RAM is at the forefront of
the green initiative in San Antonio and has completed LEED construction work.
A-RAM has worked with SAHA for the past six years.
First Aid Plumbing
Company Profile
First Aid Plumbing is a family owned and operated business here in San Antonio,
Texas. First Aid Plumbing Services has 10 years’ worth of experience.
They are Registered Master Licensed Plumbers.
First Aid Plumbing Services is Insured and family owned & operated. All
employees have background checks and are drug tested.
First Aid Plumbing is certified by the SCTRCA as SBE, HABE and MBE.
April 4, 2013
RESOLUTION 5331
RESOLUTION 5331, AUTHORIZING AN AWARD OF THREE CONTRACTS FOR PLUMBING
MAINTENANCE SERVICES ON AN “AS NEEDED BASIS,” FOR AN ANNUAL CUMULATIVE
AMOUNT NOT TO EXCEED $1,400,000.00 TO: FIRST AID PLUMBING SERVICES (ESBE, HABE,
MBE, SBE) FOR AN ANNUAL AMOUNT NOT TO EXCEED $466,666.67 AND A-RAM
PLUMBING, INC. (DBE, ESBE, HABE, MBE, SBE, HUB, SECTION 3 BUSINESS) FOR AN
ANNUAL AMOUNT NOT TO EXCEED $466,666.67 AND AIR JIREH SERVICES (ESBE, HABE,
MBE, SBE, SECTION 3 BUSINESS) FOR AN ANNUAL AMOUNT NOT TO EXCEED $466,666.66
FOR A PERIOD OF ONE YEAR WITH THE OPTION TO EXTEND FOUR (4) FOUR ADDITIONAL
ONE-YEAR PERIODS.
WHEREAS, the Housing Authority of the City of San Antonio, Texas must provide safe and quality
living conditions for its residents; and
WHEREAS, an Invitation For Bids (IFB) was issued on August 8, 2012 and subsequently closed on
August 28, 2012; and
WHEREAS, four (4) companies submitted their proposals to IFB, #1206-910-60-3839 for evaluation
by the due date; and
WHEREAS, after evaluated First Aid Plumbing Services(ESBE, HABE, MBE, SBE), Air Jireh Services
(ESBE, HABE, MBE, SBE, Section 3 Business) and A-Ram Plumbing, Inc. (DBE, ESBE, HABE, MBE,
SBE, HUB, Section 3 Business), were the lowest responsive and responsible bidders; and
WHEREAS, staff requests that the Board of Commissioners authorize the President and CEO or her
designee to execute all documents to enter into these contracts.
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of SAHA hereby:
1) Approves Resolution 5331, authorizing an award of three contracts for plumbing maintenance
services on an “as needed basis,” for an annual cumulative amount not to exceed $1,400,000.00:
First Aid Plumbing Services (ESBE, HABE, MBE, SBE) for an annual amount not to exceed
$466,666.67 and A-Ram Plumbing, Inc. (DBE, ESBE, HABE, MBE, SBE, HUB, Section 3
Business) for an annual amount not to exceed $466,666.67, and Air Jireh Services (ESBE, HABE,
MBE, SBE, Section 3 Business) for an annual amount not to exceed $466,666.67 all for a period
of one year, with an option to extend the contracts at the election of SAHA for up to four additional
years for an amount not to exceed $1,400,000.00 annually;
2) Authorizes the President and CEO or her designee to execute all necessary documents
associated with this contract.
Passed and approved the 4th day of April, 2013
__________________________
Ramiro Cavazos
Chair, Board of Commissioners
________________________________
SAHA President and CEO
Bid Tabulation Plumbing Maintenance Services
1206-910-60-3839
Contractor
Master Plumber (per hour)
Journeyman Plumber (per hour)
Jydro Jetting (per hour)
Video Inspections (per hour)
Backhoe with Operator (per hour)
Excavator with Operator (per hour)
*A-RAM Plumbing
Brandt Companies
**JR's Plumbing
*Air Jireh
Regular Hours After Hours Regular Hours After Hours Regular Hours After Hours Regular Hours After Hours
$98.00
$147.00
$115.00
$230.00
$69.50
$104.25
$90.00
$90.00
$90.00
$135.00
$115.00
$230.00
$69.50
$104.25
$65.00
$90.00
$175.00
$262.50
$300.00
$300.00
$175.00
$262.50
$90.00
$90.00
$115.00
$172.50
$100.00
$100.00
$75.00
$112.50
$150.00
$150.00
$99.50
$149.25
$150.00
$450.00
$75.00
$112.50
$250.00
$300.00
$99.50
$149.25
$150.00
$450.00
$75.00
$112.50
$250.00
$300.00
$677.00 $1,015.50
$930.00 $1,760.00
$539.00
$808.50
$895.00 $1,020.00
Additional Items
Cutting Contrete (per sq ft)
Replacment of Concrete (per sq ft)
Cutting Asphalt (per sq ft)
Replacement of Asphalt (per sq ft)
$14.00
$10.00
$10.00
$8.00
$42.00
TOTAL
Additional for Section 3
Contractor
$7.00
$9.00
$2.00
$6.00
$24.00
$1,734.50
First Aid Plumbing Services
Master Plumber (per hour)
Journeyman Plumber (per hour)
Jydro Jetting (per hour)
Video Inspections (per hour)
Backhoe with Operator (per hour)
Excavator with Operator (per hour)
Additional Items
Cutting Contrete (per sq ft)
Replacment of Concrete (per sq ft)
Cutting Asphalt (per sq ft)
Replacement of Asphalt (per sq ft)
TOTAL
Additional for Section 3
*Section 3 Firm
**See file regarding prior performance
$70.00
$50.00
$40.00
$40.00
$50.00
$45.00
$295.00
$75.00
$55.00
$45.00
$45.00
$55.00
$50.00
$325.00
$70.00
$70.00
$70.00
$70.00
$280.00
$900.00
$981.00
$10.00
$20.00
$10.00
$20.00
$60.00
$2,714.00
$2,958.26
$10.00
$15.00
$7.00
$10.00
$42.00
$1,407.50
$1,957.00
Advertisement List for
1206-910-60-3839
Plumbing Maintenance Services
Entity/Organization
Hispanic Chamber of Commerce
Alamo Asian American Chamber of Commerce
Alamo City Black Chamber of Commerce
Builders Exchange
City of San Antonio
Goodwill Industries
African American Chamber of Commerce
Hispanic Contractors Association
I Square Foot Plan Room
North San Antonio Chamber of Commerce
SA Chapter of the AGC
SA Craftsman Association
SA Women's Chamber of Commerce
South Central Texas Regional Certification Agency
South San Antonio Chamber of Commerce
Texas Veterans Commission
Chinese Chamber of Commerce
TIBH Industries
West San Antonio Chamber of Commerce
Women's Business Enterprise Alliance
Texas State Business Daily
Public Purchase
JR’s Plumbing
Air Stream
A-RAM Plumbing
Brandt Companies
Bryco Plumbing
Aramendia Plumbing and Heating
Beyer Boys
Mission Plumbing, Heating & Air Conditioning
Primo Plumbing
Legend Plumbing
Christianson A/C & Plumbing
Air Jareh
Quarter Moon Plumbing
Bolin Plumbing
CPR Plumbing
Roland’s Plumbing Service
Method of Contact
Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Posted Posted Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email SAN ANTONIO HOUSING AUTHORITY
April 4, 2013
RESOLUTION 5333, AUTHORIZING AN AWARD OF A CONTRACT FOR RESURFACING
SERVICES ON AN "AS NEEDED BASIS," TO EA CONTRACTOR, FOR AN ANNUAL
CUMULATIVE AMOUNT NOT TO EXCEED $95,000.00, FOR A PERIOD OF ONE YEAR.
~OL
Lourde&JCastro Ramirez
President and CEO
David Clark
Interim Deputy Director for
Public Housing
Lawrence Fernandez,
Interim Director Non Pro""
REQUESTED ACTION:
Consideration and approval regarding Resolution 5333, authorizing an award a contract for
resurfacing services on an "as needed basis" to EA Contractor, for an annual cumulative amount not
to exceed $95,000.00, for a period of one year.
PURPOSE:
SAHA and its affiliate properties require resurfacing services on an as-needed basis to preserve our
existing affordable housing assets. These resurfacing services include work on bathtubs, show pans,
sinks, and countertops,
FINANCIAL IMPACT:
The annual cost for resurfacing services is not expected to exceed an annual cumulative amount of
$95,000.00 and will be funded through the approved operating budgets.
SUMMARY:
On August 20, 2012, SAHA issued a Request for Proposals" (RFP) #1207-910-42-3861 for
Resurfacing Services, which closed on September 17, 2012. The RFP was published on our website,
E-procurement, La Prensa, the Express News and various other venues (See Advertisement List). A
total of three (3) proposals were received in response to the RFP: EA Contractor, Harper Painting &
Construction, and Montemayor General Contractor. All proposals were evaluated based on
Experience, Quality Plan, Price and the Section 3 and SWMBE plans. After the initial evaluation of
the submitted proposals, Best and Final Offers (BAFO) were requested from the two highest rated
proposers.
Based upon the above factors, EA Contractor is being recommended for award. (See Bid Tabulation).
This Contractor self-certifies as a Hispanic American Business Enterprise (HABE) and has been
certified by SAHA as a Section 3 Business Concern. Their prior awards received from SAHA have
included replacement of bath tubs and shower pans, and resurfacing services. Last calendar year,
EA Contractor reported three new hires all of which qualified as Section 3. They remain committed to
the Section 3 program and have agreed to provide training to two Section 3 individuals with the
possibility of becoming permanent employees.
ATTACHMENTS:
Company Profile
Resolution 5333
Bid Tab
Advertisement List
AgendaItemNO.7
EA Contractor
Company Profile
EA Contractor
EA Contractor was established in 2006 as a sole proprietorship. EA
Contractor is a local company that is SBE, MBE and a Certified Section 3
Business. EA Contractor has more than fifteen years’ experience in the
construction industry. They do general construction, resurfacing, make
ready and other general repairs. EA Contractor has completed many small
to medium projects for SAHA. EA Contractor also responds quickly to
emergencies.
RESOLUTION 5333
RESOLUTION 5333, AUTHORIZING AN AWARD OF A CONTRACT FOR RESURFACING
SERVICES ON AN “AS NEEDED BASIS,” TO EA CONTRACTOR, FOR AN ANNUAL
CUMULATIVE AMOUNT NOT TO EXCEED $95,000.00 FOR A PERIOD OF ONE YEAR.
WHEREAS, the Housing Authority of the City of San Antonio, Texas must provide safe and
quality living conditions for its residents; and
WHEREAS, an Request For Proposals (RFP) was issued on August 20, 2012 and subsequently
closed on September 17, 2012 for resurfacing services; and
WHEREAS, three (3) companies submitted their proposals to RFP, #1207-910-42-3861 for
evaluation by the due date; and
WHEREAS, after the initial evaluation of the proposals, two companies were asked to submit
Best and Final Offers and EA Contractor was the highest rated responsive and responsible
bidder; and
WHEREAS, EA Contractor self-certifies as a Hispanic American Business Enterprise (HABE)
and has been certified by SAHA as a Section 3 Business Concern.
WHEREAS, last calendar year, EA Contractor reported three new hires all of which qualified as
Section 3 and they remain committed to the Section 3 program and have agreed to provide
training to two Section 3 individuals with the possibility of becoming permanent employees.; and
WHEREAS, staff requests that the Board of Commissioners authorize the President and CEO
or her designee to execute all documents to enter into these contracts.
1) Approves Resolution 5333, authorizing an award of a contract to EA Contractor for an
annual amount not to exceed $95,000.00, for a period of one year.
2) Authorizes the President and CEO or her designee to execute all necessary documents
associated with this contract.
Passed and approved the 4th day of April 2013
_______________________________
Ramiro Cavazos
Chair, Board of Commissioners
________________________________
President and CEO
Criterion Description
TABULATION BAFO
Resurfacing Services
1207-910-42-3861
Max Points EA Contractor
Relevant experience :
Rater 1
Rater 2
Rater 3
Total Score
Average Score
Weighted Score
Quality Plan:
Rater 1
Rater 2
Rater 3
Total Score
Average Score
Weighted Score
Price proposal:
Total Score
Weighted Score
Strength of the Section 3 plan:
Rater 1
Rater 2
Rater 3
Total Score
Average Score
Weighted Score
Strength of the S/W/M/BE plan:
Rater 1
Rater 2
Rater 3
Total Score
Average Score
Weighted Score
Section 3 Preference: A firm may qualify for Section 3
status for up to an additional 5 points.
Priority 1: As detailed in Attachment D
Priority II: As detailed in Attachment D
Priority III: As detailed in Attachment D
Priority IV: As detailed in Attachment D
Tota Weighted Score
Montemayor
1-5
25%
4.00
3.00
4.00
11.00
3.67
0.92
3.00
3.00
2.00
8.00
2.67
0.67
3.00
2.00
3.00
8.00
2.67
0.27
2.00
3.00
1.50
6.50
2.17
0.22
4.43
1.99
4.74
2.13
4.00
4.00
3.00
11.00
3.67
0.37
2.00
3.00
3.50
8.50
2.83
0.28
2.00
2.00
1.50
5.50
1.83
0.18
1.00
2.00
1.00
4.00
1.33
0.13
1-5
10%
1-5
45%
1-5
10%
1-5
10%
5/.25
4/.2
3/.15
2/.1
0.10
3.83
0.10
3.53
Criterion Description
TABULATION
1207-910-42-3861
Max Points EA Contractor
Relevant experience :
Rater 1
Rater 2
Rater 3
Total Score
Average Score
Weighted Score
Quality Plan:
Rater 1
Rater 2
Rater 3
Total Score
Average Score
Weighted Score
Price proposal:
Total Score
Weighted Score
Strength of the Section 3 plan:
Rater 1
Rater 2
Rater 3
Total Score
Average Score
Weighted Score
Strength of the S/W/M/BE plan:
Rater 1
Rater 2
Rater 3
Total Score
Average Score
Weighted Score
Section 3 Preference: A firm may qualify for Section 3
status for up to an additional 5 points.
Priority 1: As detailed in Attachment D
Priority II: As detailed in Attachment D
Priority III: As detailed in Attachment D
Priority IV: As detailed in Attachment D
Tota Weighted Score
Harper Painting
Montemayor
4.00
3.00
4.00
11.00
3.67
0.92
2.00
3.00
1.50
6.50
2.17
0.54
3.00
3.00
2.00
8.00
2.67
0.67
3.00
2.00
3.00
8.00
2.67
0.27
2.00
2.00
1.50
5.50
1.83
0.18
2.00
3.00
1.50
6.50
2.17
0.22
4.41
1.98
2.87
1.29
4.77
2.15
4.00
4.00
3.00
11.00
3.67
0.37
2.00
3.00
3.50
8.50
2.83
0.28
2.00
3.00
3.50
8.50
2.83
0.28
2.00
2.00
1.50
5.50
1.83
0.18
1.00
1.00
1.00
3.00
1.00
0.10
1.00
2.00
1.00
4.00
1.33
0.13
1-5
25%
1-5
10%
1-5
45%
1-5
10%
1-5
10%
5/.25
4/.2
3/.15
2/.1
0.10
3.82
0.10
2.50
0.10
3.55
Advertisement List for
1207-910-42-3861
Entity/Organization
Method of
Contact
Hispanic Chamber of Commerce
Alamo Asian American Chamber of Commerce
Alamo City Black Chamber of Commerce
Builders Exchange
City of San Antonio
Goodwill Industries
African American Chamber of Commerce
Hispanic Contractors Association
I Square Foot Plan Room
North San Antonio Chamber of Commerce
SA Chapter of the AGC
SA Craftsman Association
SA Women's Chamber of Commerce
South Central Texas Regional Certification Agency
South San Antonio Chamber of Commerce
Texas Veterans Commission
Chinese Chamber of Commerce
TIBH Industries
West San Antonio Chamber of Commerce
Women's Business Enterprise Alliance
Texas State Business Daily
Public Purchase
EA Contractor
H. Karp Company
Tini Falls Contracting
Rick Guenther Surfacing
ZaMo Inc.
Cabinets Plus, Ltd
DG Services
Master Refinishers
American Resurfacing
Changing Surfaces
Budget Resurfacing
Vista Painting & Resurfacing
Augy’s Refinishing
ACE Custom Refinishing
DEA Specialties
Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Posted Posted Email Email Email Email Email Email Email Email Email Email Email Email Email Email Email Alamo Bathtub Refinishing
Reliable Refinishing
Texas Bathtub Refinisher
Tub-Man Bathtub Refinishing
Email Email Email Email SAN ANTONIO HOUSING AUTHORITY
April 4, 2013
RESOLUTION 5329, APPROVING THE 2013 PAYMENT STANDARD SCHEDULE AT 91106% OF THE 2013 FAIR MARKET RENTS FOR THE HOUSING CHOICE VOUCHER
PROGRAM.
"
D.IL~
Lourdes ~s~ro Ramirez
President 3rTdCEO
Director of Assisted Housing Programs
REQUESTED ACTION:
Consideration and appropriate action regarding Resolution 5329, approving the 2013 payment
standard schedule at 91-106% of the 2013 Fair Market Rents (FMRs) for the Housing Choice
Voucher Program.
PURPOSE:
The U.S. Department of Housing and Urban Development (HUD) annually publishes fair market
rents for each area of the United States, and requires each housing authority to adopt a
payment standard schedule for each FMR area in its jurisdiction. Payment standard is defined
as "the maximum assistance payment for a family assisted in the voucher program (before
deducting the total tenant payment by the family)" [24 CFR 982.4(b)]. HUD permits the housing
authority to establish a payment standard amount for a unit size at any level between 90% and
110% of the published FMR for that unit size [24 CFR 982.503(b)(1)(i)].
Published on November 29, 2012, the 2013 FMRs represent an across-the-board increase for
the San Antonio Metropolitan area. The increases vary by unit size from $3 to $154. However,
staff anticipates a $7 million decrease in FY2013 funding for the Housing Choice Voucher
Program, as a result of the federal budget sequestration. Therefore, staff requests approval to
maintain SAHA's current payment standard schedule for another year, to avoid an increase in
Housing Assistance Payment cost. The current schedule complies with HUD requirements, as
all paymentstandardamountsare between91% and 106%of the 2013 FMRs. SeeTable 1.
Table 1. 2012-2013 SAHA Payment Standards and HUDFair Market Rents
0 BR
1 BR
2 BR
3 BR
4 BR
5 BR
6BR
582
648
800
1032
1253
1441
1629
2013 HUD Fair Market Rents
550
693
870
1134
1244
1431
1617
Percentage of FMR
106%
94%
92%
91%
101%
101%
101%
582
648
800
1032
1253
1441
1629
553
616
760
980
1191
1370
1548
105%
105%
105%
105%
2013 Payment Standard Schedule**
2012 Payment Standard Schedule
2012 HUDFair Market Rents
Percentageof FMR
105% 105% 105%
**AII payment standards proposed for 2013 were applied by SAHA in 2011 and 2012.
FINANCIAL IMPACT:
The proposed 2013 payment standard schedule would have minimal impact other than annual
incremental increases as proposed by landlords and based on rent comparables.
AgendaItem No.8
April 4, 2013
SUMMARY:
On November 28, 2012, HUD published the fiscal year 2013 FMRs. HUD allows housing
authorities to establish the payment standard amounts at any level between 90% and 110% of
the published FMR. The payment standard amounts are used to calculate the subsidy payment
for participants. The recommended payment standards will be effective for all Housing
Assistance Payment contracts with an effective date of June 1, 2013, or later. Implementation
will consist of a 12-month phase-in for participants that have a reexamination effective on or
after this date and applicable to all new admission contracts effective on or after this date.
ATTACHMENTS:
Resolution 5329
April 4, 2013
Resolution 5329
RESOLUTION 5329, APPROVING THE 2013 PAYMENT STANDARD SCHEDULE AT 91106% OF THE FY 2013 FAIR MARKET RENTS FOR THE HOUSING CHOICE VOUCHER
PROGRAM
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) annually
establishes fair market rents for each area in the United States, and
WHEREAS, HUD requires the Public Housing Authority to establish voucher payment standards
for each unit size.
WHEREAS, SAHA staff has requested authorization to establish the payment standards at
amounts between 91% and 106% of the 2013 FMR schedule in order to maintain the current
payment standard schedule and enable our HCV program to avoid an increased Housing
Assistance Payment expense.
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of SAHA hereby
approves:
1) Resolution 5329, approving the FY 2013 payment standard schedule at 91% to 106% of
the 2013 Fair Market Rents (FMR) for the Housing Choice Voucher (HCV) program for
all Housing Assistance Payment Contracts with an effective date of June 1, 2013 and
later.
2013 Payment Standard Schedule
0 BR
582
1 BR
648
2 BR
800
3 BR
1032
4 BR
1253
5 BR
1441
6 BR
1629
2013 HUD Fair Market Rents
550
693
870
1134
1244
1431
1617
Percentage of FMR
106%
94%
92%
91%
101%
101%
101%
Passed and approved the 4th day of April, 2013.
________________________________
RAMIRO CAVAZOS
________________________________
SAHA PRESIDENT and CEO
MEMORANDUM
TO:
Board of Commissioners
FROM:
Yolanda Hotman, Chair, Resident Services Committee
SUBJECT:
Resident Services Committee held at Westway Apartmetns, on
March 26, 2013
A Resident Services Committee meeting was held on March 26, 2013 at Westway Apartments,
5627 Culebra. Attendees included Chair Yolanda Hotman, Commissioner Charles Munoz,
Commissioner Stella Molina, Board Counsel Doug Poneck, SAHA staff and a good number of
residents and their children.
Westway was built in 1961. It has been renovated since 2000 and consists of 152 units housed
in one- and two-story buildings.
The Resident Services Committee focuses on matters affecting the residents of the agency's
Public Housing and Mixed-Income properties. The following topics were discussed at the
committee meeting:
April Rent statement
For April, the rent stuffer includes a reminder of the danger of high winds at this time of year,
and also includes information about SAHA's no smoking policy. Future rent stuffers may include
resident fire extinguisher training, SAHA's Transfer Incentive Program, pest control, and SAHA
job openings.
Eviction Procedures
Staff will work with residents to avoid eviction, when possible and appropriate. Residents who
have a financial hardship may enter into a repayment agreement. However, residents whose
current and unpaid rent exceeds 40% of their adjusted income are not eligible for repayment
agreements.
TemporaryRelocationStandardOperatinqProcedure
.
Temporary relocations are those that are two weeks or less. Staff reported on the new
Temporary Relocation SOP, which features the guidelines for when a temporary relocation is
utilized and the procedures to implement the relocation. The SOP states that SAHA does not
pay a per diem or for meals during a relocation, and that.
Lincoln Heiqhts Courts security
In February 2012, SAHA was awarded a $250,000 Safety and Security Grant to reduce crime
and drug-related activity at Lincoln Heights Courts. The funds are being utilized to improve
lighting, add fencing, and to install security cameras. Staff is also partnering with area safety
efforts, which included a "Walk and Talk" with SAPO Chief McManus on March 9. The grantfunded improvements will be complete by June 30, 2013.
AgendaItem NO.9
Resident Council fundraisinq activities
The City's Metropolitan Health District conducted inspections at three sites and warned
residents and SAHA that food sales could not be conducted without a temporary permit. The
Health District has since clarified that food sales at SAHA sites could continue, as long as there
was no advertising or outreach of any kind to persons other than residents.
Education Investment Foundation survev
A questionnaire was created and presented to the ElF Advisory Committee in November 2012.
The survey, which consisted of 28 questions, was completed by seven of the ten committee
members by January 15, 2013. Within the next 30 days, staff will be reviewing the resulting
priorities, and will develop a draft work plan that will delineate both short-term and long-term
goals.
Education Investment Foundation Events
Staff reported on the current and upcoming events planned for 2013, which include:
. The ACC America Golf Tournament, benefiting the ElF was held on March 22, 2013
. The unveiling of the ElF 2013 Fiesta Medal and recognizing student artist will occur at
the April 4 Board of Commissioners meeting
. Fiesta Parking Fundraiser (King William Fair) will be held on April 27, 2013
. Applications for 2013 College Scholarships are currently being solicited and the deadline
is May 2013
. The scholarship event is being scheduled for late July 2013
. The golden Gala is tentatively scheduled for December 19, 2013
Installation reqardinq Wi-Fi at selected Public Housinq sites
The Westway Wi-Fi project was unveiled immediately following the Resident Services
Committee meeting on March 26, 2013. The attendees recognized the Resident Council and
their efforts to establish a wonderful learning center environment, with new paint, children's work
tables and bookshelves. Guests included representatives from SAISD, NISD, NEISD, AARP
and the Resident Council. By the end of March, Wi-Fi will be installed in the community rooms
at 30 public housing properties.
April 4, 2013
RESOLUTION 5338, AUTHORIZING A FOURTH AMENDMENT TO THE MOVING TO WORK
(MTW) AGREEMENT
/"
(
, I,
Lourde,
Preside
Rich-ard Milk,
Sr. Planning & Policy Manager
REQUESTED ACTION:
Consideration and approval regarding Resolution 5338, authorizing execution of the fourth
amendment to the Moving to Work (MTW) Agreement between U.S Department of Housing and
Urban Development (HUD) and the San Antonio Housing Authority.
PURPOSE:
To authorize inclusion of Replacement Housing Factor (RHF) funds into the pre-existing single,
authority-wide funding source (MTW Funds). This would make RHF funds available to
contribute to MTW Activities and uses of MTW Funds, in accordance with the MTW Plan.
FINANCIAL IMPACT:
None
SUMMARY:
This item was first posted for public comment on August 10, 2012. A public hearing was held
on September 20, 2012, during the Operations & Human Resources Committee Meeting. In
recent discussions with the U.S. Department of Housing and Urban Development, final
execution of an amendment to the MTW Agreement requires that action be taken by the Board
of Commissioners. This resolution would satisfy that requirement.
The amendment language describes three options for inclusion of first or second increment
RHF fund into SAHA's MTW Funds.
ATTACHMENTS:
Resolution 5338
Fourth Amendment
Agenda Item No.1 0
April 4, 2013
Resolution 5338
RESOLUTION 5338, AUTHORIZING A FOURTH AMENDMENT TO THE MOVING TO
WORK (MTW) AGREEMENT.
WHEREAS, a public hearing on this item was held on September 20, 2012 during the
Operations & Human Resources Committee Meeting; and
WHEREAS, HUD requires that action be taken by the Board of Commissioners for final
execution of any amendment to the MTW Agreement; and
WHEREAS, the Board of Commissioners certifies that the public comment requirement
has been met; and
WHEREAS, this resolution would authorize inclusion of replacement housing factor
(“RHF”) funds into the pre-existing single, authority-wide funding source (“MTW Funds”),
making RHF funds available to contribute to MTW Activities and uses of MTW Funds in
accordance with the MTW Plan.
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of SAHA
hereby:
Approves Resolution 5338 authorizing the Fourth Amendment to the Moving to
Work (MTW) Agreement between the U.S. Department of Housing and Urban
Development and the San Antonio Housing Authority and the execution of
documents in connection therewith.
Passed and approved the 4th day of April 2013.
_____________________________
RAMIRO CAVAZOS
______________________________
PRESIDENT AND CEO
AMENDED AND RESTATED MOVING TO WORK AGREEMENT
BETWEEN
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND
This Fourth Amendment to the Moving to Work (“MTW”) Agreement (“Agreement”) is entered
into by and between the United States of America through the U.S. Department of Housing and
Urban Development (“HUD”) and the San Antonio Housing Authority (“Agency”) and is
effective on the date of execution by HUD. Unless otherwise defined, all capitalized terms used
herein shall have the same meanings ascribed to them in the Agreement.
Attachment D is amended as follows:
The following language is added to the San Antonio Housing Authority’s Attachment D:
Use of Replacement Housing Factor Funds for Development
The Agency and HUD acknowledge that Section B(1)(a) of Attachment C of this Agreement
regarding the ability to combine funds awarded annually pursuant to Section 8(o), 9(d) and 9(e)
of the U.S. Housing Act of 1937 (“1937 Act”) into a single, authority-wide funding source
(“MTW Funds”) is inclusive of replacement housing factor (“RHF”) funds provided for at 24
CFR 905.10(i) provided the conditions detailed below are met. The Agency may exercise one of
the following options in the administration of RHF funds.
1) Option 1: The Agency may administer its RHF awards outside of its MTW Funds. These
funds must be used in accordance with RHF requirements and may accumulate under an
approved RHF Plan or be subject to the two-year obligation and four year expenditure
deadlines. The Agency would be eligible for second increment RHF funds, which would be
administered outside of the agency’s MTW Funds.
2) Option 2: The Agency may combine its first increment RHF funds in its MTW Funds and
use the funds for any purpose allowable in this Agreement and approved in an MTW Plan, as
detailed in Section B(1)(e) of Attachment C of this Agreement. Obligation and expenditure
requirements of Section 9(j) of the 1937 Act still apply to these funds. If administering first
increment RHF funds in this way, the Agency forgoes eligibility for second increment RHF
funds.
3) Option 3: If the Agency combines its first increment RHF funds in its MTW Funds pursuant
to Option 2, but wants to receive a second increment of RHF funds, while the Agency may
use the funds for any purpose allowable in this Agreement and approved in an MTW Plan,
the Agency must spend a portion of its MTW Funds for construction of new public and/or
affordable housing. The amount of MTW Funds the Agency must spend on construction of
new public and/or affordable units must be equal to or greater than the total amount of RHF
funds included in the MTW Funds. In addition, the number of new public and/or affordable
Fourth Amendment
1
units it constructs must be equal to or greater than the number of public housing units the
Agency would have developed if it had not included its RHF funds in its MTW Funds. This
is referred to as the “Proportionality Test.” [For example, if an Agency deposits $500,000 of
RHF funds in its MTW Block Grant, the Agency must spend at least $500,000 of its MTW
Block Grant funds on the construction of new public and/or affordable housing. The specific
number of new public and/or affordable housing units that must be constructed is determined
by dividing $500,000 by the Total Development Cost (TDC) limit applicable to the type of
new units being developed.
For example, if the Agency is developing 2-bedroom
townhomes and the TDC for these types of units is $220,000, the Agency must construct a
minimum of three new 2-bedroom townhomes ($500,000 divided by $220,000 = 2.7.) This
calculation must be done for each year that RHF funds are received by the PHA and included
in the MTW Block Grant.]
i)
The applicable TDC will be either the HUD TDC limit for the year in which
construction of the units commences or an alternate TDC approved by HUD as part of
the MTW approval process.
ii) The new public and/or affordable units required to be developed may be developed
directly by the Agency or developed through a Mixed-Finance transaction.
iii) Any project which includes construction of public housing units must be approved by
HUD following either the Development process (units owned by the Agency) or the
Mixed-Finance process (units owned by an entity other than the Agency).
iv) The Agency must show significant progress on construction of the new public and/or
affordable units required during the first increment of RHF funds in order to receive
the second increment of RHF funds.
v)
If an Agency chooses to include second increment RHF funds in its MTW Block
Grant, then second increment RHF funds will be subject to the Proportionality Test
and the same requirements as first increment funds regarding the amount of MTW
Block Grant funds that must be spent on the construction of new public and/or
affordable housing and the number of units which must be constructed.
vi) Leveraging requirements still apply to the second increment RHF funds.
vii) The 2-year obligation and 4-year expenditure deadlines are still applicable to both the
first and second increment RHF funds deposited into the MTW Block Grant.
viii) The new units constructed must be consistent with the MTW Statute and Agreement.
In order to develop affordable (non-public housing) units, an Agency must have
received prior HUD authority to implement local, non-traditional activities.
.
ix) Prior to implementing Option 3, an Agency must amend their MTW Agreements to
allow for deposit of RHF Funds in the MTW Block Grant and the receipt of second
increment RHF Funds (a standard HUD Amendment must be used).
Fourth Amendment
2
x)
Prior to implementing Option 3, an Agency must include the development of the new
public and/or affordable units in their MTW Plan and include RHF funds in Section 7,
the Sources and Uses Chart.
xi) As long as the Agency has included in its MTW Plan the construction of the new
public and/or affordable units and its intention to combine RHF funds in the MTW
Block Grant and receive second increment RHF funds, the Agency does not need to
submit an RHF Plan to HUD. However, the MTW Plan must include the information
required in an RHF Plan, as prescribed by HUD.
xii) The Agency must include in its annual MTW Report an update on the amount of RHF
funds included in the MTW Block Grant, the amount of funds spent on construction of
new public and/or affordable housing, the number of units being constructed, and the
status of construction. The Agency must show significant progress on construction of
units during the first increment of RHF funds in order to receive second increment
RHF funds.
Notwithstanding the above, such funds remain Federal funds, and are subject to any and all other
Federal requirements outside of the 1937 Act (e.g., including but not limited to Appropriations
Acts, competitive HUD notices of funding availability under which the Agency has received an
award, state and local laws, Federal statutes other than the 1937 Act, and OMB Circulars and
requirements), as modified from time to time.
IN WITNESS WHEREOF, the parties have caused this Fourth Amendment to be executed by
their duly authorized representatives.
By: ___________________________________
Name: Lourdes Castro Ramirez
Its:
Executive Director
Date: _________________________________
UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT
By: ___________________________________
Name: Sandra B. Henriquez
Its:
Assistant Secretary, Public and Indian
Housing
Date: __________________________________
Fourth Amendment
3
April 4, 2013
RESOLUTION 5339, AUTHORIZING THE ADOPTION OF THE SAN ANTONIO HOUSING
AUTHOR
MINORITY/WOMEN BUSINESS ENTERPRISE PROGRAM.
REQUESTED ACTION:
Consideration and approval regarding Resolution 5339, authorizing the adoption of the San
Antonio Housing Authority Minority/Women Business Enterprise Program.
PURPOSE:
To adopt a robust Minority/Women Business Enterprise Program (MWBE) that will serve as an
economic development tool to empower SAHA residents and businesses in San Antonio and
serve as a model for other housing authorities.
FINANCIAL IMPACT:
The annual cost for implementation of this Program is included in the operational budgets of the
agency.
SUMMARY:
On January 15, 2013, the San Antonio Housing Authority engaged a vendor , Innovative
Strategies, to develop a formal, legally compliant MWBE Program. The draft of the proposal
and the necessary forms were presented before a Special Board Meeting on March 21, 2013, at
which time the Consultant and staff received questions and feedback from the Board of
Commissioners on the proposed Program. Since that time, Innovative Strategies has worked
with SAHA staff to respond to Commissioners' questions regarding the MWBE Program. In
addition, the Commissioners were provided the Utilization and Availability Analysis and the
latest the feedback from the Commissioners has been incorporated into the proposed MWBE
Program.
To that end, the MWBE Policy has been revised to incorporate the following:
•
•
•
•
Introductory statements expressing that the adoption of this policy is an economic
development tool to empower SAHA residents and businesses in San Antonio.
Utilization goals .
Clarification about whether, under the most recent disparity study, SAHA met or
exceeded availability standards in its utilization at the time of the study.
Revisions to the sub-title to Section 16 (Race/Gender Neutral) to reflect capacity building
program measures are an important part of the measures to be undertaken.
Highlights of the recommended MWBE Policy include:
• Legally defensible policy
• Robust set of capacity building tools
• Contract clause that ties MWBE plan to contract compliance.
• Tracking process to capture not only prime but subcontractor data.
• Sunset provision that provides for annual performance review of SAHA performance.
Agenda Item No. 11
•
April 4, 2013
Development of internal and external outreach efforts to integrate the implementation of
the MWBE program.
ATTACHMENTS:
Resolution 5339
Redlined Proposed MWBE Program
Proposed MWBE Utilization Statement
April 4, 2013
RESOLUTION 5339
RESOLUTION 5339, AUTHORIZING THE ADOPTION OF THE SAN ANTONIO HOUSING AUTHORITY
MINORITY/WOMEN BUSINESS ENTERPRISE PROGRAM
WHEREAS, the vision of the Housing Authority of the City of San Antonio (SAHA), Texas is to create
dynamic communities where people thrive; and
WHEREAS, in line with that vision is SAHA’s goal is to empower and equip families to improve their quality
of life and to achieve economic stability through the agency’s commitment of funding and allocated
resources; and
WHEREAS, SAHA seeks to encourage and solicit the full participation of minority and women-owned
businesses in all phases of its contracting and procurement activities and to afford them a full and fair
opportunity to compete on SAHA contracts and procurements; and
WHEREAS, SAHA recognizes that specific and general disparities between the number of qualified and
ready, willing, and able minority and women-owned business enterprises (M/WBEs) and the number of such
businesses actively engaged on SAHA contracts and procurements continue to exist. This finding also
continues to exist with other public sector entities in the local community; and
WHEREAS, after having conducted an Availability/Disparity Study, it can be discerned that an un-level
playing field continues to exist in the awarding of contracts and procurements to M/WBEs within SAHA and
other public sector entities in the local community; and
WHEREAS, SAHA desires to implement a policy and a Minority/Women Business Enterprise (M/WBE)
Program to utilize as an economic development tool to promote and address its contracting and
procurement disparities against such businesses by establishing an aggressive, results-oriented M/WBE
Program.
WHEREAS, on January 15, 2013, the San Antonio Housing Authority engaged a vendor, Innovative
Strategies, to develop a formal, legally compliant MWBE Program; and
WHEREAS, the proposed MWBE Program was provided for the review of the Board of Commissioners on
March 21, 2013 and staff and the vendor received feedback that has been incorporated into the MWBE
Program; and
WHEREAS, highlights of the recommended MWBE Policy include that it is a legally defensible policy that
incorporates a robust set of capacity building tools; a contract clause that ties MWBE plan to contract
compliance; a tracking process to capture not only prime but subcontractor data; sunset provision that
provides for annual performance review of SAHA performance; development of Internal and External
Outreach efforts to integrate the implementation of the MWBE program as well as Capacity Building Tools
all of which serve to enhance economic development opportunities to our residents and the San Antonio
Community.
April 4, 2013
Approves Resolution 5339, authorizing the adoption of the San Antonio Housing Authority
Minority/Women Business Enterprise Program.
PASSED AND APPROVED THE 4TH DAY OF APRIL 2013.
_____________________________
RAMIRO CAVAZOS
ATTESTED AND APPROVED AS TO FORM:
______________________________
Minority/Women Business Enterprise
Program
ADOPTED:
RevisedMarch29,2013
Page1
Minority/Women Business Enterprise Program
TABLE OF CONTENTS
PART A: POLICY
SECTION 1: INTRODUCTION ................................................................... 4
SECTION 2:
POLICY STATEMENT ......................................................... 4
SECTION 3:
PURPOSE ........................................................................... 4
SECTION 4:
GENERAL RESPONSIBILITIES ......................................... 5
SECTION 5:
POLICY GOALS .................................................................. 6
SECTION 6:
SEVERABILITY ................................................................... 8
SECTION 7:
PROGRAM INTERPRETATION .......................................... 8
SECTION 8:
FEDERAL REQUIREMENTS .............................................. 8
PART B: PROCEDURES
SECTION 9:
DEFINITIONS ...................................................................... 8
SECTION 10: ELIGIBILITY ........................................................................ 11
SECTION 11: M/WBE LISTINGS ............................................................... 12
SECTION 12: OUTREACH ........................................................................ 12
SECTION 13: DEPARTMENTAL RESPONSIBILITIES ............................. 13
SECTION 14: M/WBE CLAUSE ................................................................. 14
SECTION 15: PRIME CONTRACTOR COMPLIANCE .............................. 17
SECTION 16: RACE AND GENDER NEUTRAL
PROGRAM MEASURES .................................................... 18
SECTION 17: SUNSET PROVISION ......................................................... 19
Page 2
PART C: MONITORING AND REPORTING
SECTION 18: RECORDS AND REPORTS ................................................ 19
Page 3
PART A: POLICY
SECTION 1: INTRODUCTION
The San Antonio Housing Authority (SAHA) SAHA’s vision is to create dynamic
communities where people thrive. The agency empowers and equips families to improve
their quality of life and to achieve economic stability through the agency’s commitment
of funding and allocated resources. To that end, the SAHASan Antonio Housing
Authority seeks to encourage and solicit the full participation of minority and womenowned businesses in all phases of its contracting and procurement activities and to afford
them a full and fair opportunity to compete on SAHA contracts and procurements.
The San Antonio Housing Authority (SAHA) recognizes that specific and general
disparities between the number of qualified and ready, willing, and able minority and
women-owned business enterprises (M/WBEs) and the number of such businesses
actively engaged on SAHA contracts and procurements continue to exist. This finding
also continues to exist with other public sector entities in the local community.
After having conducted an Availability/Disparity Study, it can be discerned that an unlevel playing field continues to exist in the awarding of contracts and procurements to
M/WBEs within SAHA and other public sector entities in the local community.
Therefore, SAHA shall implement a policy and a Minority/Women Business Enterprise
(M/WBE) Program to be utilized as an economic development tool to promote and
address its contracting and procurement disparities against such businesses by
establishing an aggressive, results-oriented M/WBE Program.
SECTION 2: POLICY STATEMENT
It shall be the policy of the SAHA to provide equitable business opportunity to all of its
contractors and vendors and to address the underutilizations and inequitable contracting
and procurement participation by M/WBEs found in the SAHA’s marketplace and in
most local public contracting entities.
SAHA, its contractors and subcontractors shall not discriminate on the basis of race,
religion, national origin, or gender, in the award and performance of contracts,
subcontracts, or employ business practices which have an exclusionary impact on
minority, and women-owned businesses.
SAHA seeks to encourage and solicit the full participation of minority and women-owned
businesses in all phases of its contracting and procurement activities and to afford them a
full and fair opportunity to compete on SAHA contracts and procurements. SAHA, its
contractors and subcontractors shall not discriminate on the basis of race, religion,
national origin, or gender, in the award and performance of contracts, subcontracts, or
Page 4
employ business practices which have an exclusionary impact on minority, and womenowned businesses.
SECTION 3: PURPOSE
The purpose and objectives of this program are to ensure nondiscrimination in the award
and administration of SAHA contracts and procurements to all interested bidders and
proposers and to serve as an economic development tool to empower SAHAour residents
and the San Antonio community as follows:
A. To develop both “race-conscious” and “race-neutral” approaches and initiatives
that will foster a more level playing field and competitiveness for M/WBEs, so
that they can become more qualified and competitive and more effectively
compete on SAHA contracts and procurements.
B. To ensure that the SAHA M/WBE Program is focused and narrowly tailored in
accordance with applicable law.
C. To ensure that only minority and women-owned business enterprises, as defined
by and meeting SAHA’s M/WBE program eligibility standards are permitted to
participate in this program.
D. To help increase the competitiveness and qualifications of M/WBEs and more
effectively outreach and promote SAHA’s business opportunities to such firms.
E. To assist in the development of and outreach/solicit to minority/women business
enterprises so that they can compete successfully in SAHA’s marketplace without
the assistance of SAHA’s M/WBE Program.
SECTION 4: GENERAL RESPONSIBILITIES
The SAHA Procurement Department shall be responsible for program implementation,
coordination, and monitoring and shall ensure the cooperation of SAHA operational staff
as necessary for effective implementation of this Program.
The SAHA Procurement Department shall have the overall responsibility to enforce and
administer M/WBE policies, standards, definitions, criteria, and procedures to govern the
implementation, interpretation, and application of this Program in a manner to achieve its
stated purposes.
Program abuse, suspected program abuse or any violation of this program by either
SAHA prime contractors or by minority/women-owned firms is to be submitted to SAHA
representatives for formal or informal review and resolution. Although SAHA will
conduct its program inquiries with the highest confidentiality, certain allegations,
accusations, and program infractions will only be entertained if submitted in a formal
manner.
Page 5
Formal inquiries are defined to be:
(i)
Submitted in a written format
(ii)
Non-anonymous
(iii) Receive a written response on SAHA’s behalf
Informal inquiries are defined to be:
(i)
Verbal notice (in person or telephone call)
(ii)
Can simply meet to discuss the issue(s) in question
(iii) Anonymous calls or letters will generally be reviewed along informal lines
SAHA reserves the right to accept or decline to pursue submitted inquiries and will
ascertain on a case-by-case basis the procedural format for such reviews/investigations.
SAHA also reserves the right to establish a formal compliant investigation process in the
future.
SECTION 5: POLICY GOALS
SAHA specifically retains the right to recommend and/or establish applicable M/WBE
goals. When deemed appropriate and in SAHA’s sole discretion, SAHA program
representatives shall recommend and establish overall aspirational M/WBE goals and/or a
contract specific M/WBE goal by individual trade areas - construction, professional
services and procurement, as well as any other business area deemed appropriate by
SAHA management for M/WBE goal development. SAHA shall also reserve the right to
recommend and/or establish individual project-by-project M/WBE goals.
SAHA shall establish narrowly-tailored M/WBE goals, which will be principally based
upon current findings and evidence of M/WBE availability and utilization. In certain
instances, SAHA may be guided in implementing or developing the applicable goal(s) by
regulatory requirements and/or a SAHA adopted availability/disparity study. All M/WBE
goals established under this program shall also be reviewed by the SAHA legal counsel
for legal conformity.
SAHA hereby adopts the M/WBE aspirational goals as recommended in its most recent
Availability/Disparity Study (conducted by MGT of America, Inc.). The final
recommended M/WBE goals reflect known circumstances and conditions in an attempt to
match proposed project work with available and qualified M/WBEs within the SAHA
marketplace. SAHA will apply these M/WBE goals on an annual basis and set them by
business category as follows:
Category
Const - Prime
Const – Sub
A&E
Avail ¹
%
Utilization
72.2
10.0 ²
14.3
< Avail.
No Ddata
< Avail.
Aspirational
M/WBE Goal
%
702.0
10.0
104.0
Page 6
Formatted Table
Prof Svcs
Other Svcs
Goods & Supplies
6.1
27.8
9.7
> Avail.
> Avail.
<Avail.
None
None
10.0
¹ As identified in SAHA’s determined relevant market area through its
Availability/Disparity Study.
² While SAHA has no subcontractor data, the Availability/Disparity Study has
identified a 10 % M/WBE subcontractor availability of the total prime contract
dollar value based on census estimates.
During the implementation process of the overall aspirational M/WBE goals, SAHA
representatives will on a quarterly basis review and consider the individual ethnic/gender
statistical disparities and tailor (as part of the narrow-tailoring aspects of the program) its
outreach and contract participation efforts to remedy each of the specific disparities.
Aspirational overall M/WBE goals shall be established or reaffirmed on an annual basis
and will reflect SAHA’s commitment directed at increasing the participation of M/WBE
enterprises, which will also serve as a valuable standard for determining the effectiveness
and need of this program effort.
SAHA will attempt to meet the entire overall aspirational M/WBE goals by utilizing
race-neutral means in facilitating contract/procurement M/WBE participation as follows:
a. Locating and identifying M/WBEs as part of our process to identify and solicit
small business enterprises in the community who may be interested in
participating as contractors and vendors;
b. Notifying the general business population of procurement and contracting
opportunities and encouraging them to compete, to include applicable
M/WBEs;
c. Where practical, structuring contract activities so as to encourage and
facilitate the participation of the general business population, to include
M/WBE firms;
d. Providing technical assistance to applicable SAHA-related businesses,
particularly assisting small and M/WBEs in overcoming technical limitations,
such as inability to obtain bonding, financing, or insurance;
e. Ensuring that bidders/proposers are informed during pre-bid/solicitation
meetings as to SAHA’s race-neutral M/WBE Program outreach efforts and
their requested support;
f. Working with entities, departments, and organizations, both within and
outside the SAHA structure to foster greater vendor/contract participation,
particularly M/WBE participation.
SAHA may also employ a contract specific M/WBE goal process to establish such goals
on a contract-by-contract basis for the construction and professional services areas. Due
to the business nature of the procurement area, SAHA will principally utilize an overall
aspirational M/WBE benchmark/goal for procurement and specifically retains the right to
Page 7
establish, at its sole discretion, contract specific goals in appropriate procurement area
contracts. Contract specific goals shall be based on perceived project
subcontracting/consulting opportunities to M/WBE trade areas based on the SAHA
marketplace availability. Contract specific M/WBE goals are to be established to allow
SAHA flexibility to give consideration to actual project subcontracting/consultant and
procurement needs and opportunities, allowing SAHA to establish practicable and
reasonable contract specific M/WBE goals effectively.
It is specifically noted that SAHA bidders, proposers, and vendors are not required to
subcontract/consult with unqualified M/WBEs or to compromise valid standards in order
to meet established M/WBE goals. If goals are not met, no sanctions will be
recommended or imposed provided the successful bidder, proposer, or vendor can fully
demonstrate that he/she made an acceptable good-faith effort, as interpreted and defined
by SAHA representatives, to achieve it. SAHA M/WBE goals are not to be interpreted,
defined, or applied as quotas.
SECTION 6: SEVERABILITY
The provisions of this Program are declared to be separate and severable. The invalidity
of any clause, sentence, paragraph, subdivision, section, or portion of this Program, or the
invalidity of the application thereof to any person or circumstances shall not affect the
validity of the remainder of this Program, or the invalidity of its application to other
persons or circumstances.
SECTION 7: PROGRAM INTREPRETATION
Nothing in SAHA’s M/WBE Program is intended, nor should it be construed, or
interpreted, as authorizing violations of the competitive bidding statutes and professional
services solicitation statutes promulgated under local rules and regulations, state law or
federal constitutional standards.
SECTION 8: FEDERAL REQUIREMENTS
Policies, procedures, and contract clauses required under any applicable federal
regulations are hereby specifically incorporated by reference to this section as part of, and
a specific additional requirement under SAHA’s M/WBE Program. Although the SAHA
Program principally addresses minority and women-owned business initiatives as its
focus, all federal requirements shall be specifically passed on SAHA contractors and
fully complied with.
The SAHA Procurement Department shall also have the responsibility for
implementation, coordination, monitoring, and compliance with any applicable federal
minority/women business-related program requirements.
Page 8
PART B: PROCEDURES
SECTION 9: DEFINITIONS
Bid: A quotation, solicitation, proposal, or offer by a bidder or proposer to perform or
provide labor, materials, equipment, supplies or services to SAHA for a price.
Bidder: Any business enterprise that submits a quotation, bid, offer, or proposal to
provide labor, materials, equipment, supplies, or services to SAHA.
Business Enterprise: Any legal entity which is organized to engage in lawful
commercial transactions and is actively engaged in such transactions as a means of
livelihood, such as a corporation, partnership, sole proprietorship, or any other
professional association or any other legal entity, that is properly licensed and/or
otherwise authorized to do business in the State of Texas, but not a joint venture except
as hereinafter provided
Certification: Means the documented evidence of status of a firm or business as a
minority or women-owned business from an entity conferring such status acceptable to
SAHA.
Contract: An award by the SAHA whereby SAHA expends or commits the expenditure
of its funds in return for work, labor, services, supplies, equipment, materials, or any
combination of the above.
Compliance: Refers to the fact that a prime contractor has correctly implemented the
requirements under SAHA’s M/WBE Program.
Good Faith Efforts: Efforts to achieve the SAHA M/WBE goal(s), which by their scope,
intensity, and appropriateness to the objective, can reasonably be expected to fulfill the
Program’s objective.
M/WBE Goal: A flexible target as determined by SAHA to be achieved during a twelve
month period, during the term of a particular contract based on estimates of the
availability of qualified minority/women-owned business enterprises (ready, willing, and
able) in the SAHA applicable marketplace, and known circumstances and conditions. In
no case shall a goal be construed as constituting a fixed quota.
Joint Venture: An association of two or more persons, partnerships, corporations or any
combination thereof, founded to carry on a single business activity, which is limited in
scope and duration. The degree to which a joint venture may satisfy the stated M/WBE
benchmark(s) cannot exceed the proportionate interest of the M/WBE as a member of the
joint venture in the work to be performed by the joint venture. For example, a joint
venture for which the M/WBE contractor is to perform 50.0 percent of the contract work
itself, shall be deemed equivalent to having M/WBE participation of 50.0 percent of the
Page 9
work. M/WBE members of the joint venture must have financial, managerial, or technical
skills in the work to be performed by the joint venture.
Minority Business Enterprise: A small business including without being limited to, a
sole proprietorship, partnership, corporation, joint venture or any other business or
professional entity:
a. Which is at least 51% owned by one or more minority persons, or in the
case of a publicly owned business, at least 51% of all classes of the stock
of which is owned by one or more minority persons;
b. Whose management, policies, major decisions and daily business
operations are managed and independently controlled by one or more such
minority persons;
c. Presents certification as such by an entity acceptable to SAHA.
Minority Persons: Those persons, whether citizens of the United States or lawfully
admitted resident aliens, who are:
a. Black or African-American (persons whose origins are in one of the Black
racial groups of Africa);
b. Hispanic (persons whose origins are in Mexico, Central or South America,
Spain or any of the Spanish-speaking islands of the Caribbean, regardless
of race);
c. Native-American (persons whose origin are in any of the original peoples
of North America);
d. Asian-American (persons whose origins are in any of the original peoples
of the Far East, Southeast Asia, the islands of the Pacific or the Northern
Mariana’s, or the Indian Subcontinent);
e. For purposes of contracts funded by other federal programs, groups found
to be eligible for the specific designation by such governmental sources.
Owned, Managed and Independently Controlled: One or more minority persons or
women who own the requisite interest in or assets of a business possess the customary
incidents of such ownership, including an equivalent interest in profit and loss, and shall
have contributed an equivalent percentage of capital or equipment and expertise to the
business. Ownership shall be measured as though not subject to the community property
interest of a spouse if both spouses certify in writing that the non-participating spouse
relinquishes control over his or her community property interest in the subject business.
The ownership and control of the firm shall be real, substantial, and continuing and shall
go beyond the pro forma ownership of the firm as reflected in its ownership documents.
Prime Contractor: Any person, firm, partnership, corporation, association or joint
venture as herein provided which has been awarded a SAHA contract or agreement.
Program: The Minority/Women Business Enterprise (M/WBE) Program established
through this Program document.
Page 10
Small Business: A business enterprise that satisfies all the definitional requirements of
Section 3 of the Small Business Act and relevant regulations promulgated thereto, except
that a small business shall not include any business or group of businesses which have
annual average gross receipts in excess of the standards established by the U.S. Small
Business Administration’s regulation under 13 CFR Part 121 for a consecutive three-year
period. However, no firm or business will be considered small if, including its affiliates;
it averages annual gross revenues in excess of $17 million over the previous three (3)
years.
Subcontractor: Any named person, firm, partnership, corporation, association or joint
venture as herein provided identified as providing work, labor, services, supplies,
equipment, materials, or any combination of the foregoing, under contract with a prime
contractor on a SAHA contract. Subcontractor includes every level of subcontracting
required to fulfill a contract with SAHA. For purposes of this Program, the term
subcontractor includes subconsultants. Sub-consultants are persons or business
enterprises providing professional services to a prime consultant if such professional
services are procured or used in fulfillment of the prime consultant’s obligations arising
from a contract with SAHA and include every level of subconsulting required to fulfill a
contract with SAHA.
Women Business Enterprise: A small business enterprise that is owned, managed and
independently controlled by one or more females. A women business enterprise must also
satisfy the owned and controlled provisions under the minority business definition and
the owned, managed and independently controlled definition within this section.
SECTION 10: ELIGIBILITY
To ensure that the SAHA M/WBE Program benefits businesses, which are owned in both
form and substance by minority and women individuals, as defined under this program,
SAHA shall require such firms to submit documentation acceptable to SAHA
representatives certifying their respective M/WBE status.
The purpose of certification is two-fold:
A. To ensure the integrity of the M/WBE Program by providing efforts and strategies
designed to increase contracting opportunities for minority and women-owned
firms, as defined by SAHA; and,
B. To develop and establish business listings for SAHA, prime contractors, and other
entity solicitation.
M/WBE status certification is subject to the review and approval by SAHA program
representatives. All firms which desire or may be required by SAHA to be certified for
M/WBE participation credit must submit documentation from a certifying entity
acceptable to SAHA for review and approval. In the case of joint ventures, the M/WBE
Page 11
member must be certified as an M/WBE and the joint venture itself must submit the Joint
Venture Agreement for review and approval by SAHA representatives. Upon approval,
M/WBE status certification is effective for a one year period from the date of initial
certification approval unless the business’ ownership and/or control changes prior to its
certification expiration or is otherwise revoked.
SAHA reserves the sole right to approve or disapprove M/WBE status certification and to
revoke such certification designation in the event the control or ownership of the firm is
deemed by SAHA to have changed. All denied M/WBE firms will be notified in writing.
Denied M/WBE firms which may believe that they have been wrongly denied
certification status may appeal SAHA’s decision through a written statement to the
Procurement Director who will function as a “hearing officer” and be presented the
appeal information for review and determination. The Procurement Director will serve as
an independent SAHA representative to concur or reverse the M/WBE Program’s ruling.
The denied M/WBE firm shall present its written statement of position and include copies
of all information it wishes to introduce as evidence to SAHA within ten (10) working
days from the date of the SAHA determination notice. The SAHA Procurement Director
may request any additional information it deems necessary.
The SAHA Procurement Director shall issue a final ruling within thirty (30) working
days of the appeal statement and provide certified letter notice. The Procurement
Director’s ruling shall be final. Upon the final SAHA ruling denying status certification,
a denied M/WBE firm may not be deemed acceptable and receive M/WBE credit on
SAHA projects until twelve (12) months after such decision. During an appeal process,
the decision of the M/WBE Program shall be in effect.
SECTION 11: M/WBE LISTINGS
As part of SAHA’s efforts to identify and ensure solicitation of M/WBE
involvement/utilization on SAHA projects, SAHA shall maintain listings (directories) of
M/WBE firms by trade areas; i.e., construction, professional services (architects,
engineers, etc.), procurement and concessions for local and project specific needs.
The listings will be updated on a quarterly basis, and will be used to notify M/WBEs of
business opportunities; and provide the primary vehicle for SAHA bidders/proposers and
contractors to satisfy M/WBE program requirements, meet SAHA M/WBE performance
ranges or goals, as well as, facilitate a base for joint ventures, partnerships, etc.
The listings shall include firms that satisfy SAHA M/WBE certification status
requirements.
SECTION 12: OUTREACH
Page 12
An integral component of the SAHA M/WBE Program are the processes, procedures and
formalized efforts to identify, solicit and ensure consideration and participation by
minority/women-owned businesses on SAHA contracting and procurement opportunities.
SAHA’s commitment to the achievement of equitable contracting opportunities for all
businesses is the principal reason in establishing its M/WBE Program. The Program’s
outreach efforts are designed to document initiatives and establish processes which best
inform, solicit, and confirm SAHA and prime contractor efforts for maximum
consideration and participation by minority/women business enterprises.
Key actions to SAHA’s outreach efforts are internal and external communication and
interaction by the Procurement Department, which has overall M/WBE Program
responsibility and other SAHA departments and the minority/women-owned business
community. These outreach efforts shall be the primary responsibility of and coordinated
through the M/WBE Program Manager.
Internal Communication
All SAHA departments having or sharing responsibility for the awarding of SAHA
contracts have a responsibility to support and assist in promoting and carrying out the
M/WBE Program. In support of the SAHA M/WBE Program, SAHA has established in
conjunction with appropriate SAHA departments, procedures to enhance qualifications,
competitiveness, and opportunities for minority/women business consideration and
involvement. Processes have been jointly established to capture, disseminate, analyze,
and communicate SAHA business opportunities, and to address barriers to effective
minority/women business enterprise participation.
A myriad of formats, procedural processes and regularly scheduled activities will be
institutionalized under this Program into the texture of the SAHA contracting fabric
designed to foster a coordinated approach in ensuring communication with, consideration
and solicitation of minority/women-owned firms through the SAHA M/WBE Program.
External Communications
Communication and support of SAHA’s M/WBE initiatives by entities that represent or
promote minority/women business interest is a crucial element to a viable and effective
M/WBE Program effort.
Correspondingly, SAHA will also formalize efforts to ensure communication and
participation by external minority/women business-related entities in maximizing the
SAHA’s identification and solicitation efforts for such businesses. Efforts with these
entities are geared towards establishing a fluid communication process that informs,
facilitates networking, and assists in the overall development and management of
SAHA’s M/WBE Program. Appropriate SAHA representatives participate in
minority/women business support entity activities and look to these entities/organizations
Page 13
as the principal means to generate active support and participation by the minority and
women-owned business community.
SECTION 13: DEPARTMENTAL RESPONSIBILITIES
The SAHA Procurement Department will administer, monitor, and enforce or seek to
enforce the procedures for implementation of the M/WBE Program and will perform in a
manner as may be necessary to achieve the purposes and objectives of this Program. The
Procurement Department shall issue guidelines and implementing procedures as
necessary and appropriate to achieve the objectives of this Program.
Each SAHA department which has or shares responsibility for the awarding of SAHA
contracts or contract administration has a direct responsibility under this program to
promote, support, and assist in carrying out this Program. Such departments shall be
held accountable for exercising specific functions in support of the program, as well as
any other function(s) deemed necessary by management.
As the department responsible for the M/WBE Program, the Procurement Department
will:








Develop and maintain systematic procedures to ensure that minority and womenowned businesses are afforded an equitable opportunity to compete on all SAHA
contracts and procurements such as, but not limited to, timely dissemination of
bid/contract information, assistance and opportunities, conducting workshops,
trade fairs, developing handbooks, attending pre-bid/pre-proposal conferences,
contractor compliance, technical, financial, and managerial assistance, etc.
Compile, maintain, and report performance data indicating each department’s
progress towards achieving the objectives of the M/WBE Program and meet with
each SAHA department on a semi-annual basis.
Prepare and present ad hoc, annual, and internal quarterly M/WBE performance
reports, as well as an annual report to SAHA Commissioners on the progress of
the M/WBE Program, and also recommend annual changes to this Program as
necessary to improve its overall effectiveness.
Analyze SAHA’s progress through race-conscious and race-neutral efforts at
increasing minority and women business enterprise involvement/participation and
identify methodologies to improve progress.
Establish SAHA’s appropriate M/WBE participation ranges or goal(s), to include
where applicable project specific M/WBE benchmarks or goal(s).
Develop and oversee SAHA’s strategy in establishing its outreach/solicitation
efforts to the minority and women-owned business communities.
Authenticate the certification of businesses as minority and/or women-owned
firms, maintaining appropriate documentation and ensuring compliance with
Program requirements.
Ensure that all SAHA contracts and procurements valued at less than $50,000
comply with the procurement policy of soliciting two (2) or more M/WBEs on
each opportunity.
Page 14
SECTION 14: M/WBE CLAUSE
All SAHA departments having contract administration responsibilities shall ensure that
the following M/WBE Clause is included in all specification packages and requests for
bids or proposals. The inclusion of the M/WBE Clause and its applicable goal(s) in a
contractor’s bid/proposal package shall become a binding part of his/her contract.
MINORITY/WOMEN BUSINESS ENTERPRISE CLAUSE
A. It is the policy of the SAHA that minority/women-owned business enterprises
shall have the maximum practicable opportunity to participate in the awarding of
SAHA contracts and related subcontracts.
B. The bidder, proposer, contractor or vendor agrees to employ good faith efforts to
carry out this policy through award of subcontracts to minority/women-owned
business enterprises to the fullest extent consistent with the efficient performance
of this contract; and/or the utilization of M/WBE vendors/suppliers where
feasible. All SAHA prime contractors are expected to solicit bids for
subcontractors/suppliers from available M/WBE enterprises.
C. The bidder, proposer, contractor or vendor specifically agrees to comply with all
applicable provisions of the SAHA M/WBE Program, to include federal
requirements when applicable.
D. Prime contractors shall maintain records, as specified in the Audit and Records
section of the General or Special Provisions in his/her contract, showing (1)
subcontract/supplier awards, specifically to minority and women-owned business
enterprises; (2) specific efforts to identify and award such contracts to minority
and women-owned business enterprises; and, (3) submit when requested by
SAHA representatives, copies of executed contracts with M/WBEs to establish
actual M/WBE business participation.
E. Prime contractors agree to submit timely reports of subcontract and/or supplier
awards to minority and women-owned business enterprises in such form and
manner and at such time as SAHA shall prescribe and shall provide access to
books, records, and accounts to authorized SAHA officials, state or federal
agencies for the purposes of verifying M/WBE participation and good faith efforts
to carry out this M/WBE Program. All SAHA prime contractors may be subject to
a post contract M/WBE audit. Audit determinations may be considered and have a
bearing in the evaluation of a contractor’s good faith efforts on future SAHA
contracts.
F. Contractors shall appoint a high level official to administer and coordinate the
contractor’s efforts to carry out this M/WBE Program.
Page 15
G. All construction bidders and/or contractors with contracts valued at $50,000 or
more shall make good faith efforts to subcontract and achieve SAHA’s
contractual M/WBE performance ranges or goals (specified in individual contract
bid specifications) with SAHA approved minority and women-owned business
enterprises. Contractors failing to achieve the contractual M/WBE performance
range or goals or contractors failing to maintain the specific M/WBE performance
percentage range or goal initially approved, will be required to provide
documentation demonstrating that they have made good faith efforts, as
interpreted and defined by SAHA, in attempting to do so through the submittal of
an acceptable M/WBE Utilization Statement. All bidders/contractors are required
to satisfy applicable M/WBE Program requirements prior to the award of
contract. Bidders/contractors that fail to meet these requirements will be
considered non-responsive or in non-compliance as described in Section K of this
Clause.
H. All professional services (Architects, Engineers, Construction Management and
other related consultant services) proposers and/or prime consultants with
contracts valued at $50,000 or more shall make good faith efforts to utilize
M/WBE sub-consultants and achieve SAHA’s contractual M/WBE performance
ranges or goals (specified in individual contract proposal specifications) with
SAHA approved minority/women-owned business enterprises. Successful
proposers failing to achieve the contractual M/WBE performance range or goals
in their submitted project proposal or prime consultants failing to maintain the
specified M/WBE performance percentage range or goal initially approved, will
be required to provide documentation demonstrating that they have made good
faith efforts, as interpreted and defined by SAHA, in attempting to do so through
the submittal of an acceptable M/WBE Utilization Statement. Successful
proposers are required to satisfy applicable M/WBE Program requirements prior
to the award of contract. Proposers/contractors that fail to meet these requirements
will be considered non-responsive or in non-compliance as described in Section K
of this Clause.
I. All procurement-related bidders with contracts valued at $50,000 or more shall,
by bid/Purchase Order submittal, specifically agree to all applicable provisions of
the SAHA M/WBE Program and the M/WBE Clause specifically which is
included as part of the supplier/vendor’s Purchase Order or contract.
In consultation with the procurement department through the M/WBE Program
Manager, at their discretion, will require certain suppliers or vendors
(contractors) in procurements which may reasonably present sub-vendor
opportunities to demonstrate good faith efforts to utilize M/WBEs and achieve the
SAHA overall M/WBE performance range or goal and/or the contract specific
M/WBE performance percentage range or goal assigned to that particular
procurement. All vendors (contractors) with Purchase Order/contracts subject to
this requirement shall make good faith efforts to involve M/WBEs and achieve
SAHA’s contractual M/WBE performance range or goal (as specified in
Page 16
individual contract bid/Purchase Order specifications) with SAHA approved
minority/women-owned business enterprises. Vendors (contractors) failing to
achieve the contractual M/WBE performance range or goal will be required, at
SAHA’s discretion, to provide documentation demonstrating that they have made
good faith efforts, as interpreted and defined by SAHA, in attempting to do so
through the submittal of an acceptable M/WBE Utilization Statement.
Vendors that fail to meet these requirements will be considered non-responsive or
in non-compliance as described in Section K of this Clause.
J. All changes to the original list of subcontractors/sub-consultants submitted with a
bid or proposal, excluding vendors shall be submitted for review and approval in
accordance with SAHA procedures when adding, changing, or deleting
subcontractors/sub-consultants on SAHA projects. All contractors also will be
required to make good faith efforts to replace M/WBE subcontractors/subconsultants unable to perform on the contract with another approved M/WBE
firm.
K. Failure or refusal by a bidder, proposer, contractor or vendor to comply with the
M/WBE provisions herein or any applicable provision of the M/WBE Program,
either during the bidding process or at anytime during the term of the contract,
shall constitute a material breach of contract whereupon the contract, at the option
of the SAHA, may be cancelled, terminated or suspended in whole or in part; and,
the contractor may be debarred from further contracts with SAHA as a nonresponsible contractor.
SECTION 15: PRIME CONTRACTOR COMPLIANCE
SAHA shall provide technical assistance to its bidders, proposers, contractors and
vendors as may be necessary in complying with the M/WBE Clause and M/WBE
Program requirements in general.
After bid opening and identification of the successful bidder or selection of the successful
proposer, a bidder/proposer, except for purchasing contractors (vendors), will be required
to provide the information below prior to the award of the contract:
A. Demonstrated acceptable compliance with applicable provisions of the M/WBE
Clause. This includes a review to ensure achievement of the SAHA M/WBE
benchmark/goal or approval of its good faith efforts, as determined by SAHA
through the submittal of the required M/WBE Utilization Statement documenting
such. SAHA representatives shall review and formally approve a bidder or
proposer’s good faith efforts prior to the award of the contract.
B. Submittal of M/WBE status certification information for all non-certified M/WBE
firms utilized on the project, including the M/WBE prime if applicable. Notice is
hereby given that it is the responsibility of the prime contractor to ensure that its
Page 17
M/WBE subcontractors/vendors submit all necessary information for proper
SAHA M/WBE status review, certification, and credit.
C. Notwithstanding the fact that a prospective contractor may have the capability to
complete a total project with its own work force, and without the use of
subcontractors/sub-consultants, all SAHA contractors are required to demonstrate
positive and reasonable good faith efforts to subcontract with and/or procure
supplies/services with minority and women-owned business enterprises in its subconsultant/subcontractor or supplier service area. Contractors who propose to
perform the contract with their own work force, and without the use of
subcontractors will be required to demonstrate its good faith efforts by submitting
information (when requested by SAHA) sufficient for SAHA to determine the
following, which effectuate a waiver of M/WBE program requirements: (1) that it
is a normal business practice of the contractor to perform the elements of the
contract with its own work forces without the use of subcontractors; (2) that the
technical nature of the proposed project does not facilitate subcontracting nor any
significant supplier opportunities in support of the project; and/or, (3) that the
contractor has in fact demonstrated its capabilities to perform the elements of the
contract with its own work forces without the use of subcontracts.
D. All changes to the original list of subcontractors or sub-consultants submitted
with the bid or proposal, excluding vendors shall be submitted for review and
approval in accordance with SAHA procedures when adding, changing, or
deleting subcontractors or sub-consultants on SAHA projects. Contractors shall
make a good faith effort to replace M/WBE subcontractors or sub-consultants that
are unable to perform on the contract with another approved M/WBE.
All of the foregoing information, except for D above, must be approved by SAHA prior
to the award of the SAHA contract. If SAHA determines a bidder/proposer’s efforts to be
inadequate, it may find the bidder/proposer to be in non-compliance with the policies and
provisions of the SAHA M/WBE Program. In such a case, SAHA representatives may
seek to bring the low bidder or proposer into voluntary compliance, or recommend that
the contract not be awarded. SAHA may recommend additional sanctions against SAHA
contractors who are found to be in non-compliance with M/WBE Program requirements
or its contract provisions at any time during the term of the SAHA contract.
SECTION 16: RACE AND GENDER NEUTRAL PROGRAM MEASURES
CAPACITY BUILDING PROGRAMS: SAHA shall employ measures to facilitate the
equitable consideration and participation of all business enterprises in its contracting and
procurement opportunities independent and in collaboration with other agencies and
resource partners. Recognizing the contract participation M/WBE disparities in its
marketplace, specific measures to identify, solicit, and encourage consideration and
participation by minority and women-owned business enterprises will be established
under this Program on a race and gender neutral basis in its initial year of
implementation. Thereafter, SAHA will analyze and determine whether any racePage 18
conscious measures will be specifically implemented to address a continuing M/WBE
contract disparity. Race and gender neutral measures will include, but not be limited to
the following capacity building programs:
A. Develop a bonding, finance, and insurance strategy to eliminate unnecessary
barriers to contracting with SAHA. This effort will include review of overall and
individual requirements in these areas and the utilization of local, state and/or
federal bonding programs. As an example, this effort will examine and consider
phased and waived bonding on SAHA contracting and procurement opportunities
where applicable.
B. Adopting prompt payment procedures, including requiring by contractual clause
that prime contractors pay subcontractors within ten (10) days of receipt of
payment from SAHA; and where appropriate, issuing joint checks to contractors
and subcontractors.
C. Develop a financial assistance strategy to leverage and provide greater
opportunity for SAHA contractors and vendors to address and secure financing.
This effort will include initiatives to educate and position firms whereby they can
become better qualified to secure project financing. Efforts will be specifically
directed towards project specific leverage financing and consideration of prequalified bidder pools.
D. Consider development of individual training programs designed to address
problem areas, such as a “Construction Training Academy”. The Construction
Training Academy will focus on developing critical operational and
administrative skills necessary for successful bid and project performance. The
academy can be presented by local prime contractors and will feature networking
sessions that will facilitate more intimate professional relationships, which
hopefully lead to greater participation by such firms at both the prime and
subcontractor levels.
E. Develop individualized technical assistance programs and initiatives to enhance
bidder/proposer qualifications and competitiveness. These initiatives will take
into consideration specific project needs such as, bid assistance efforts,
specification understanding, enhanced bid notices, project specific networking
sessions, etc.
F. Development of website information to more effectively publicize and promote
small and local business opportunities and initiatives, to include project
information and status, and general outreach.
G. Development of race neutral, small business Mentor-Protégé Programs.
H. Development of race neutral, small business Joint Venture Programs.
Page 19
I. Review and development of, if allowable under current state law, a small business
program.
I.J. Encourage SAHA vendors to participate in an entrepreneurial speaker series in
area middle and high schools.
SECTION 17: SUNSET PROVISION
The SAHA M/WBE Program will expire at the end of one (1) fiscal year following the
fiscal year adopted, unless prior to that date SAHA elects to reauthorize or terminate the
Program.
SAHA’s Procurement Director shall on an annual basis present a recommendation to the
SAHA Commissioners through the SAHA CEO determining whether there is a
continuing need for the M/WBE Program and/or address performance under the M/WBE
Program.
PART C: MONITORING AND REPORTING
SECTION 18: RECORDS AND REPORT
In order to monitor the progress of its M/WBE efforts, SAHA shall maintain a recordkeeping system designed to:
A. Assess overall M/WBE utilization on SAHA contracts, subcontracts, and
procurements by trade category – construction, professional services, and
procurement.
B. Identify and monitor M/WBE utilization on an overall, prime contractors, subcontractor, and vendor/supplier basis, and on a project-by-project basis.
C. Identify and list all SAHA bidders, proposers, subcontractors and subconsultants,
as well as certified M/WBE firms.
The SAHA M/WBE Program Manager will review and present an annual report on
M/WBE performance and progress and the achievement of the SAHA overall M/WBE
performance ranges o goals to SAHA Administration. On an individual basis the M/WBE
Program Manager will be prepared to present information detailing the achievement of
the project specific M/WBE benchmarks or goals. As required, other M/WBE-related
internal and external and/or ad hoc reports shall also be prepared.
Calculation of M/WBE Participation
The participation of M/WBE contractors and suppliers in contract awards will be
calculated as follows: Once a firm is determined to be a certified M/WBE acceptable to
Page 20
SAHA, the total dollar value of the contract(s) awarded to such prime and subcontractors
is counted as participation in each appropriate category.
SAHA may also count as M/WBE participation, a portion of the total dollar value of a
contract with partially owned M/WBE firms equal to the percentage of the ownership of
the M/WBE co-owner. Joint venture M/WBE participation will be counted as detailed in
the definition section under “Joint Ventures”.
SAHA will count as M/WBE participation only expenditures to M/WBEs that perform a
commercially useful function in the work of a contract. An M/WBE is considered to
perform a commercially-useful function when it is responsible for execution of a distinct
element of the work of a contract and carries out its responsibilities by actually
performing, managing, and supervising the work involved.
SAHA and its contractors may also count toward the M/WBE performance ranges or
goals the following expenditures to M/WBE firms:
A. The fees or commissions charged for providing a bona fide service, such as
professional, technical, consultant or managerial services, and assistance in the
procurement of essential personnel, facilities, equipment, materials or supplies
required for performance of the contract, provided that the fee or commission is
determined by SAHA to be reasonable and not excessive as compared with fees
customarily allowed for similar services.
B. The fees of commission charged for providing any bonds or insurance specifically
required for the performance of the contract, provided that the fee or commission
is determined by SAHA to be reasonable and not excessive as compared with fees
customarily allowed for similar services.
Page 21
ATTACHMENT (1)
M/WBE UTILIZATION STATEMENT
M/WBE PROGRAM OFFICE
INSTRUCTION SHEET
Please read these instructions carefully before completing the required Minority/Women
Business Enterprise (M/WBE) Utilization Statement. These instructions are designed to
assist prime contractors/consultants document M/WBE program compliance or in
preparing the required detailed and complete good faith effort information.
Contractors/Consultants are required to submit detailed documentation when the contract
specified M/WBE participation ranges or goals are not met. The SAHA M/WBE Program
Manager will review and consider a bidder’s or proposer’s good faith efforts in assisting
SAHA to meet its M/WBE policy and program objectives.
________________________________________________________________________
A. Bidders/Proposers are required to make sincere efforts in attempting to achieve the
applicable SAHA M/WBE participation ranges or goals. The approved M/WBE
participation ranges or goals will be monitored throughout the duration of the project;
B. All bidders/proposers are to complete Section A, Project Identification and Section B,
Project M/WBE Utilization, if applicable. Should there be subcontracting/sub
consulting opportunities, yet the bidder/proposer not achieve the project’s applicable
M/WBE participation range or goal, the bidder/proposer must complete all other
sections of the Statement.
C. This Statement should be prepared by the company’s project M/WBE Coordinator or
designee. The Statement must be signed and dated by an authorized company official.
The Coordinator or designee should have a working knowledge as to the project’s
subcontracting or sub-consulting and supplier activities (actual and anticipated). This
individual shall be a key figure in directing the prime contractor’s M/WBE activities.
D. The M/WBE Utilization Statement demonstrating a contractor’s good faith efforts is
subject to the SAHA M/WBE Program Manager’s review and approval.
E. SAHA requires all M/WBE firms to be certified as such by an entity acceptable to
SAHA for project M/WBE credit.
F. SAHA reserves the right to approve all additions or deletions of subcontractors, subconsultants, and/or major vendors. In the event that an M/WBE subcontractor, subconsultant, and/or major vendor is replaced, the contractor must make a good faith
effort to involve and utilize another M/WBE subcontractor, sub consultant, and/or
major vendor.
Page 1 of 5
ATTACHMENT (1)
Should you have any questions or need additional information, please contact:
(Name)
(Address)
M/WBE Program Manager
(E-mail Address)
(Telephone Number)
FOR SAHA PROCUREMENT DEPARTMENT USE ONLY
Reviewed by: __________________________________________
Date: _________________________________________________
Signature of SAHA Official: ______________________________
Recommendation: Approval: ______ Denial: _______
Page 2 of 5
ATTACHMENT (1)
M/WBE UTILIZATION STATEMENT
M/WBE PROGRAM OFFICE
SECTION A: PROJECT IDENTIFICATION
Project Number____________
Project Title____________________________
Contract Amount __________
Company Name _________________________
Project Participation Range/Goal: M/WBE ____ %
Contract Anticipated Participation Range: M/WBE ____ %
The M/WBE participation range/goal is expressed as a percentage of the total dollar
amount of the prime contract awarded to M/WBEs. The goal is applicable for those
areas, which the prime contractor has subcontracted, sub-consulted, and/or major
supplies necessary in the performance of the contract.
SECTION B: SUBCONTRACTOR/SUB CONSULTANT/VENDOR
UTILIZATION
1. List all actual and anticipated subcontracts, subconsultants, and/or major material
purchases, include both M/WBE and non-M/WBE, to be utilized on the project (use
additional sheets if necessary).
TRADE AREA
2.
3.
4.
5.
6.
ESTIMATED
AMOUNT ($)
SUB/SUPPLIER
M/WBE
Yes (√) No
MBE utilization in total dollars: _______ WBE utilization in total dollars: _______
Overall MBE utilization percentage (%): ______
Overall WBE utilization percentage (%): ______
Overall M/WBE utilization percentage (%): ______
Anticipated M/WBE utilization on this contract will occur:
Throughout ___ Beginning 1/3 ___ Middle 1/3 ___ Final 1/3 ___
Please Note:
SAHA will credit only those M/WBEs that have been certified by an entity acceptable
to SAHA. All changes, additions, or deletions occurring during the life of this contract
Page 3 of 5
ATTACHMENT (1)
relative to use of the listed subcontractors, sub-consultants and/or major suppliers,
M/WBE or otherwise, must be submitted to SAHA for review and approval.
If Bidder/Proposer is unable to meet the M/WBE participation range/goal, please
proceed to complete Section C and submit documentation demonstrating
contractual good faith efforts.
SECTION C: GOOD FAITH EFFORT
The following items are minimally considered as good faith efforts and demonstrate
specific initiatives made in attempting to achieve the City’s M/W/DSBE participation
ranges. The bidder/proposer is not limited to these particular areas and may include other
efforts deemed appropriate. Please feel free to elaborate on any question below.
REQUIRED QUESTION(S)
1.
If applicable, was your company represented at the pre-bid conference?
2.
Did your company request and obtain a copy of the certified M/WBE firms?
3.
Were M/WBE firms solicited for contract participation?
4.
Provide listing of solicited M/WBEs with whom contact was made?
Please identify name of company, contact person, date, phone number and briefly
describe nature of solicitation. (Include as an Attachment)
5.
Was direct contact made with SAHA’s M/WBE Program Office?
If yes, please identify date/person contacted and assistance sought.
(Include as an Attachment)
6.
Identify all M/WBE support agencies/associations contacted for M/WBE
assistance or solicitation (Minority Chamber’s of Commerce, purchasing
councils, contractor groups, etc.). (Please attach copies of solicitation letters of
assistance and/or describe, as an Attachment to this section, the personal
contact made)
7.
Were bid opportunities related to this project advertised in minority/women
newspapers and trade journals? (If yes, please include a copy of the
advertisement or detail the name of the publication(s), date of advertisement
and describe the solicitation)
8.
Were copies of plans and specification furnished to any M/WBEs?
9.
Were subcontractors, subconsultants, and/or suppliers (if applicable) required to
provide insurance or be bonded? (If yes, please detail any assistance that was
provided or if they were referred, to whom)
Yes (√) No
10. List, as an Attachment, all M/WBE bids received but rejected. Identify company
name, contact person, telephone number, date, trade area, and the reason for
rejecting the bid/proposal.
Page 4 of 5
ATTACHMENT (1)
11. Discuss any other effort(s) aimed at involving M/WBEs (Include as an
Attachment):
(a) Identify any specific efforts to divide work, in accordance with normal
industry practices, to allow maximum M/WBE participation.
(b) Discuss joint ventures initiatives, requesting second-tier M/WBE
subcontracting, etc., if any.
(c) List all other good faith efforts employed, please elaborate.
SECTION D: AFFIRMATION
The undersigned acknowledges and states that all information submitted as part of this
Good Faith Effort Statement is true and correct to the best of his/her knowledge. I further
agree that this document shall be attached thereto and become a binding part of the
SAHA contract.
___________________________
Print Name/Title
________________________
Date
___________________________
Signature
________________________
Telephone Number
Page 5 of 5
April 04, 2013
RESOLUTION 5335 AUTHORIZING THE REFINANCING OF CONVERSE RANCH I
APARTMENTS IN THE AMOUNT OF $7,443,700, THE EXECUTION OF ALL
DOCUMENTS NECESSARY FOR THE REFINANCING; AND OTHER MATTERS IN
CONNECTION
J~ITH .
.
tro Ramirez
CEO
REQUESTED ACTION:
Consideration and approval regarding Resolution 5335 authorizing the refinancing of Converse
Ranch I Apartments in the amount of $7,443,700,the execution of all documents necessary for
the refinancing; and other matters in connection therewith.
PURPOSE:
The purpose of the refinance
increase cash flow.
is to reduce the property's current interest rate on debt and
FINANCIAL IMPACT:
The refinance of the Converse Ranch I Apartments loan will produce approximately $140,000 in
additional annual cash flow by reducing the current interest rate of 5.50% to a rate of 2.98%.
SUMMARY:
On June 14, 2012, the Board approved Resolution 5271, authorizing the execution of a loan
engagement letter with Greystone Funding Corporation in connection with an application to
HUD to refinance the existing mortgage for the Converse Ranch I Apartments. The application
was submitted and subsequently approved by HUD on January 15, 2013. Subsequent to this,
the Greystone Loan Commitment and Confirmation Rate lock documents were negotiated and
executed by SAHA staff and legal counsel. These documents are attached. The amount of the
new loan will be $7,443,700 and will have an interest rate of 2.98%. The term and amortization
period will be for 480 months, or 40 years.
ATTACHMENTS:
Resolution 5335
Resolution 5271
Executed Loan Commitment
Confirmation of Insured Loan Terms (Rate Lock)
Agenda Item No. 12
CERTIFICATE FOR RESOLUTION
The undersigned officer of the Housing Authority of the City of San Antonio, Texas, a
Texas housing authority created pursuant to the laws of the State of Texas (“SAHA”), hereby
certifies as follows:
1.
In accordance with Chapter 551, Texas Government Code, as amended (the
“Open Meetings Act”), and the bylaws of SAHA, the Board of Commissioners of SAHA (the
“Board”) held a meeting on April 4, 2013, (the “Meeting”) of the duly constituted officers and
members of the Board, at which a duly constituted quorum was present. Whereupon among
other business transacted at the Meeting, a written
RESOLUTION 5335 AUTHORIZING THE REFINANCING OF CONVERSE
RANCH I APARTMENTS IN THE AMOUNT OF $7,443,700, THE
EXECUTION OF ALL DOCUMENTS NECESSARY FOR THE
REFINANCING; AND OTHER MATTERS IN CONNECTION THEREWITH
(the “Resolution”) was duly introduced for the consideration of the Board and discussed. It was
then duly moved and seconded that the Resolution be adopted; and, after due discussion, said
motion, carrying with it the adoption of the Resolution, prevailed and carried by a majority vote
of the Board.
2.
A true, full, and correct copy of the Resolution adopted at the Meeting is attached
to and follows this Certificate; the Resolution has been duly recorded in the Board’s minutes of
the Meeting; each of the officers and members of the Board was duly and sufficiently notified
officially and personally, in advance, of the time, place, and purpose of the Meeting; and the
Meeting was held and conducted in accordance with the Open Meetings Act and the Bylaws of
SAHA.
SIGNED April 4, 2013.
President and CEO
RESOLUTION 5335
RESOLUTION 5335 AUTHORIZING THE REFINANCING OF
CONVERSE RANCH I APARTMENTS IN THE AMOUNT OF $7,443,700,
THE EXECUTION OF ALL DOCUMENTS NECESSARY FOR THE
REFINANCING; AND OTHER MATTERS IN CONNECTION
THEREWITH
WHEREAS, the Housing Authority of the City of San Antonio, Texas (“SAHA”) created
Converse Ranch, LLC (the “LLC”), to acquire and finance the purchase of a property known as
Converse Ranch I Apartments (the “Apartments), a 124-unit multifamily housing facility located
at 8355 Crestway Drive, San Antonio, Texas 78109; and
WHEREAS, SAHA is the sole member of the LLC; and
WHEREAS, SAHA staff determined that the existing mortgage loan could be refinanced
with a significant reduction in the loan’s interest rate, and the Board of Commissioners of SAHA
(the “Board”) previously approved the execution of an engagement letter with Greystone
Funding Corporation “Greystone”) in connection with the proposed refinancing; and
WHEREAS, SAHA staff recommends the Board approve the refinancing of the
Apartments with Greystone in the amount of $7,443,700; and
WHEREAS, the Board of Commissioners of SAHA (the “Board”) has determined that it
is in the public interest and to the benefit of the citizens and residents of San Antonio to
authorize the Authority and the LLC to enter into the transaction described above so that the
existing indebtedness can be refinanced at a lower interest rate; and
WHEREAS, the Board has reviewed the foregoing and determined that the action
authorized herein is in furtherance of the public purposes of SAHA and the LLC;
NOW, BE IT THEREFORE RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE HOUSING AUTHORITY OF THE CITY OF SAN ANTONIO, TEXAS, THAT:
Section 1.
The proposed refinancing of the Apartments is hereby authorized and
approved, and the President, any Vice President, the Secretary and/or Treasurer, or any Assistant
Secretary and/or Treasurer, or any of them, of SAHA, as appropriate, on behalf of SAHA and the
LLC, are hereby authorized to: execute any and all documentation required for the refinancing,
including but not limited to any promissory notes, deeds of trust, regulatory agreements,
assignments of rents and leases, security agreements, agreements relating to reserves, financing
statements, letters of credit, amendments to the LLC’s organizational documents or creation of
new single-member limited liability companies, and other documents (the “Documents”)
required to close on the refinancing. The President, any Vice President, the Secretary and/or
Treasurer, or any Assistant Secretary and/or Treasurer, or any of them, are authorized to
negotiate and approve such changes in, or additions to, the terms of any of the Documents,
including amendments, renewals, assignments, and extensions, as such officers shall deem
necessary or appropriate upon the advice of counsel to SAHA and the LLC, and approval of the
terms of any of the Documents by such officers and this Board shall be conclusively evidenced
by the execution and delivery of such Documents.
Section 2.
The officers of this Board, or any of them, are authorized to take any and
all action necessary to carry out and consummate the transactions described in or contemplated
by the documents approved hereby or otherwise to give effect to the actions authorized hereby
and the intent hereof.
Section 3.
If any section, paragraph, clause, or provisions of this Resolution shall 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 4.
The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the Board.
Section 5.
All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 6.
This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 7.
This Resolution shall be in force and effect from and after its passage.
*
*
*
JUNE 14, 2012
RESOLUTION
NO. 5271
RESOLUTION
AUTHORIZING
THE EXECUTION
OF A LOAN
ENGAGEMENT
LETTER
WITH
GREYSTONE
FUNDING
CORPORATION IN CONNECTION WITH AN APPLICATION TO HUD
TO REFINANCE THE CONVERSE RANCH I APARTMENTS IN THE
APPROXIMATE
AMOUNT OF $7,441,700, THE EXECUTION OF ALL
DOCUMENTS NECESSARY FOR THE APPLICATION;
AND OTHER
MATTERS IN CONNECTION THEREWITH
WHEREAS, the Housing Authority of the City of San Antonio, Texas ("SARA")
created Converse Ranch, LLC (the "LLC"), to acquire and finance the purchase of a property
known as Converse Ranch I Apartments (the "Apartments), a 124-unit multifamily housing
facility located at 8355 Crestway Drive, San Antonio, Texas 78109; and
WHEREAS,
SAHA is the sole member the LLC; and
WHEREAS, SAHA staff has determined that the existing mortgage
refinanced and the interest rate significantly reduced; and
loan can be
WHEREAS, SAHA staff recommends that an engagement letter be executed with
Greystone Funding Corporation in order that an application be prepared and submitted to HUD
for a proposed refinancing of the Apartments in the approximate amount of $7,441,700 pursuant
to Section 223(a)(7); and
WHEREAS, the Board of Commissioners of SARA (the "Board") has determined that it
is in the public interest and to the benefit of the citizens and residents of San Antonio to
authorize the Authority and the LLC to enter into the transaction described above so that the
existing indebtedness can be refinanced at a lower interest rate; and
authorized herein is in furtherance of the public purposes of SARA and the LLC;
NOW,
BE
IT
THEREFORE
COMMISSIONERS
OF THE HOUSING
ANTONIO, TEXAS, THAT:
RESOLVED
AUTHORITY
BY
THE
BOARD
OF
OF THE CITY OF SAN
Section 1.
The proposed refinancing contemplated for the Apartments and the
contemplated actions of the Authority and the LLC regarding the refmancing are hereby
authorized and approved, and the President, any Vice President, the Secretary and/or Treasurer,
or any Assistant Secretary and/or Treasurer, or any of them, of SARA, as appropriate, on behalf
of SARA and the LLC, are hereby authorized to: execute a loan engagement letter with
Greystone Funding Corporation in connection with the proposed HUD 223(a)(7) refinancing of
Converse Ranch I Apartments; to execute and submit to HUD all refinancing application
documents; incur preliminary costs, including application fees, appraisal fees, attorney fees and
other due diligence costs; and to negotiate definitive loan documents required for the refinancing
of the Apartments and to bring such documents back to the Board for final approval.
JUNE 14, 2012
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
*
*
*
JUNE 14, 2012
CERTIFICATE FOR RESOLUTION 5271
The undersigned officer of the Housing Authority of the City of San Antonio, Texas, a Texas
housing authority created pursuant to the laws of the State of Texas ("S AHA") , hereby certifies as
follows:
1.
In accordance with Chapter 551, Texas Government Code, as amended (the "Open
Meetings Act"), and the bylaws of SAHA, the Board of Commissioners of SAHA (the "Board") held
a meeting on May 23, 2012, (the "Meeting") of the duly constituted officers and members of the
Board, at which a duly constituted quorum was present. Whereupon among other business transacted
at the Meeting, a written
RESOLUTION
AUTHORIZING
THE
EXECUTION
OF A LOAN
ENGAGEMENT LETTER WITH GREYSTONE FUNDING CORPORATION
IN CONNECTION WITH AN APPLICATION TO HUD TO REFINANCE THE
CONVERSE RANCH I APARTMENTS IN THE APPROXIMATE AMOUNT
OF $7,441,700, THE EXECUTION OF ALL DOCUMENTS NECESSARY FOR
THE APPLICATION;
AND OTHER MATTERS
IN CONNECTION
THEREWITH
(the "Resolution") was duly introduced for the consideration of the Board and discussed. It was then
duly moved and seconded that the Resolution be adopted; and, after due discussion, said motion,
carrying with it the adoption of the Resolution, prevailed and carried by a majority vote of the Board.
2.
A true, full, and correct copy of the Resolution adopted at the Meeting is attached to
and follows this Certificate; the Resolution has been duly recorded in the Board's minutes of the
Meeting; each of the officers and members of the Board was duly and sufficiently notified officially
and personally, in advance, of the time, place, and purpose of the Meeting; and the Meeting was held
and conducted in accordance with the Open Meetings Act and the Bylaws of SAHA.
Approved June 14, 2012.
LOURJ)~
RAMIREZ
February 7, 2013
Converse Ranch, LLC
c/o San Antonio Housing Authority
818 South Flores Street
San Antonio, Texas 78204
Attention: Author Mikeska
RE:
Converse Ranch (the “Project”)
Converse, Bexar County, Texas
FHA Project No.: 115-35664
Dear Mr. Mikeska:
This letter shall constitute the commitment (the "Commitment") of Greystone Funding
Corporation (the "Lender") to Converse Ranch, LLC, a Texas limited liability company (the
"Borrower"), to fund a mortgage loan (the "Insured Loan") for the above-referenced project (the
"Project") which is to be insured by the U.S. Department of Housing and Urban Development
acting by and through the Federal Housing Commissioner ("FHA") under Section 221(d)(4)
pursuant to Section 223(a)(7) of the National Housing Act, as amended (the "Act"), all in
accordance with that certain Firm Commitment dated January 15, 2013, attached hereto and
incorporated herein by reference as Exhibit A, including any written amendments thereto
approved by Lender (the "FHA Commitment"), subject to the terms and conditions set forth
below:
1.
meanings:
Defined Terms. As used herein, the following terms shall have the following
Insured Loan Amount:
$7,443,700.00, subject to a
maximum +/- 5% variance
pursuant to Paragraph 4 hereof.
Insured Loan Interest Rate:
To be determined pursuant to
Paragraph 8 hereof.
Insured Loan Term:
480-month amortization (or such
lesser period as approved by
FHA).
Good Faith Deposit Amount:
$37,219.00, as provided in
Paragraph 37 hereof.
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 2
2.
FHA Mortgage Insurance. The Insured Note (defined in Paragraph 5 below)
shall be endorsed by FHA for mortgage insurance ("FHA Endorsement”) pursuant to the Act, and
shall in all respects be in compliance with and subject to applicable terms and provisions of (a)
the Act, (b) the FHA Commitment, (c) the rules, regulations, administrative procedures and
instructions, and all other requirements of FHA (collectively, the "FHA Requirements"), and (d)
the terms of this Commitment. The Borrower shall satisfy or cause to be satisfied all applicable
terms and provisions of the Act, the FHA Commitment, this Commitment and the FHA
Requirements.
3.
Borrower. The Borrower at the time of FHA Endorsement shall be a duly
constituted single asset entity in good standing.
4.
Insured Loan Amount. The principal amount of the Insured Loan in accordance
with the FHA Commitment is to be Seven Million Four Hundred Forty-three Thousand Seven
Hundred Dollars ($7,443,700.00) (the “Insured Loan Amount”). In the event an amendment to
the FHA Commitment is subsequently issued which adjusts the amount of the Insured Loan, the
Lender agrees to fund the Insured Loan Amount as so adjusted, but only to the extent that such
final Insured Loan Amount does not exceed a 5% variance from the Insured Loan Amount herein
stated.
5.
Mortgage Note. The Borrower shall execute a negotiable, non-recourse
promissory note (the "Insured Note" or the "Note"), payable to the order of Lender, in an amount
equal to the Insured Loan Amount. The Insured Note shall be endorsed for mortgage insurance
by FHA prior to the disbursement of any proceeds of the Insured Loan (FHA Endorsement and
said disbursement are referred to collectively as the "Closing").
6.
Security. The Insured Loan shall be secured by a valid first mortgage or deed of
trust ("Mortgage") on the land and all improvements located or to be located thereon, and the
fixtures attached or to be attached thereto, comprising the above referenced Project and as more
particularly described in the Mortgage, subject only to other liens or encumbrances acceptable to
the Lender and FHA. The Borrower represents and warrants to Lender that it owns, or will own
by Closing, fee simple title to the real property and improvements comprising the Project, and
that it has not conveyed (and will not convey) any interest in the Project to any third party except
as may be disclosed to and approved by Lender. On or before Closing, Borrower, at its sole cost
and expense, shall provide a mortgagee title policy insuring the first lien status of the Mortgage
in form, substance and from a title company acceptable to Lender. Borrower shall not impose or
permit to be imposed any restriction, lien or other encumbrance on the land and improvements
comprising the Project or the income derived therefrom without the prior written consent of
Lender.
7.
Additional Security. The Borrower shall grant and take all actions necessary to
enable Lender to perfect a first priority security interest in all of the Borrower's personal property,
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 3
as required by the Lender and/or FHA, including, but not limited to, furniture, equipment,
fixtures, funds, accounts, rents and receivables, and applicable licenses, as more fully described
in the Security Agreement to be executed by the Borrower. The Borrower represents and
warrants to Lender that it owns, or will own by Closing, good and marketable title to all personal
property used in conjunction with the Project, and that Borrower has not leased (and will not
lease) such personal property, nor has Borrower conveyed or pledged (and will not convey or
pledge) any interest in such personal property to any third party, or in any personal property
hereafter acquired, nor impose or permit to be imposed any restriction, lien or encumbrance upon
the personal property or other collateral pledged by Borrower hereunder to secure the repayment
of the Insured Loan, without the prior consent of the Lender and FHA in writing. The Borrower
shall not owe any debts other than the Insured Loan, except for debts specifically approved by
Lender and FHA in writing.
8.
Quote and Confirmation of Terms. The Borrower may lock the interest rate,
prepayment terms, and closing date by requesting a telephonic quote (“Quote”) from Lender,
after (a) the Borrower has accepted this Commitment; (b) a creditworthy individual acceptable to
Lender (hereinafter referred to as the “Responsible Party”) has been identified and has agreed in
writing to be jointly and severally liable to Greystone for the payment of any FHA Initial
Endorsement Extension Fee and other liability to Lender for the period from rate lock through
FHA Endorsement; (c) the Good Faith Deposit has been received by Lender; and (d) the
Borrower has confirmed that all Borrower pre-closing requirements and conditions outlined in
the FHA Commitment and this Commitment have been or can be timely satisfied. Borrower and
the Responsible Party acknowledge and agree that upon Lender’s receipt of Borrower’s
telephonic acceptance of the Quote, Lender’s verbal confirmation to Borrower shall cause
the Quote to become binding upon the parties in accordance herewith (the “Locked
Terms”). As soon as practical thereafter, Lender shall provide Borrower with written
confirmation (“Confirmation”) of the mutually agreed upon Locked Terms in the form attached
hereto as Exhibit B. Failure of the Borrower and/or the Responsible Party to return to Lender a
signed copy of the Confirmation shall not affect their respective obligations hereunder.
It is important to note that Borrower’s request for a Quote should occur only when the Borrower
and its counsel are confident that Borrower is prepared to close the Insured Loan by the required
closing date (“Required FHA Endorsement Date”) identified within the Locked Terms, as the
Borrower and the Responsible Party are liable for damages should the Insured Loan fail to close
by the Required FHA Endorsement Date. Lender makes no representation or warranty regarding
the interest rate and terms available in the financial markets at the time the Locked Terms are set.
9.
FHA Endorsement. FHA Endorsement shall occur on a date agreed to by
Borrower, Lender and FHA, to be no later than the Required FHA Endorsement Date set forth in
the Confirmation. If FHA Endorsement shall not occur within the time period stated above, then
subject to Lender approval (and if required FHA approval) the FHA Endorsement may be
extended for monthly period(s), which shall not exceed the number of extension periods as set
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 4
forth on the Confirmation, which are available to Borrower upon payment to Lender of a nonrefundable extension fee (“Extension Fee”) for each such extension or portion thereof in the
amount set forth in the Confirmation. Each Extension Fee shall be paid to the Lender in good
funds no later than the business day prior to the first day of the applicable extension.
10.
Interest Rate. Interest shall be computed on the daily outstanding principal
balance of the Insured Loan and shall be paid monthly in arrears on the first day of each month
following FHA Endorsement, as more particularly described in the Note.
11.
Term. The Insured Loan shall be repaid in an initial installment of interest and
installments of principal and interest thereafter, and shall mature at the expiration of the Insured
Loan Term, in accordance with the terms of the Note, the FHA Commitment and any
amendments thereto issued by FHA and acceptable to the Lender. Amortization of the Insured
Loan shall be as set forth in the FHA Commitment.
12.
Prepayment Provisions. The Note shall contain such prepayment provisions as
are set forth in the Confirmation, and any additional provisions required by FHA.
13.
Loan Documents; Approvable Entities. The Insured Loan shall be evidenced
and secured by such documents (the "Loan Documents") as shall be required by the Lender and
FHA. The Loan Documents shall include, but not necessarily be limited to: the FHA
Commitment, this Commitment, the Note, the Mortgage, a Regulatory Agreement, survey
(pursuant to Paragraph 14 herein), the Borrower's organizational documents, title insurance
policy, hazard, flood, liability and other insurance policies required by Lender (pursuant to
Paragraph 19 herein), a Security Agreement, UCC Financing Statements, evidence of availability
of utilities, evidence of compliance with zoning and all applicable land use requirements,
Borrower's attorney's opinion, letters of credit and various certificates, licenses, permits,
assurances, receipts and other ancillary instruments, forms and agreements. All of such
documents shall be in form and substance acceptable to Lender, its counsel and FHA. In
addition, any party executing or delivering any of the Loan Documents, including without
limitation, each insurance company, issuer of a letter of credit, title company, surety, general
contractor, subcontractor and any management agent (collectively, the "Approvable Entities")
shall be subject to the Lender's approval.
The Borrower shall furnish or cause to be furnished to the Lender, as soon as material and
information becomes available but no event later than within fifteen (15) business days of the
acceptance and delivery to Lender of this Commitment, such information concerning each of the
Approvable Entities as the Lender may require and copies of all of the proposed Loan Documents
to be delivered at FHA Endorsement, other than those prepared by the Lender and its counsel.
Lender's counsel shall provide to Borrower's counsel a list of closing documents to be provided
by Borrower at its sole cost and expense.
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 5
14.
Survey. The Borrower may be required by FHA to furnish or cause to be
furnished to the Lender and FHA an as-built survey of the Project. Such survey shall be
satisfactory in form and content to the Lender, its counsel and FHA and shall bear such
certifications as any of the foregoing shall require.
15.
Financial Requirements for Closing; Cash Payments and Letters of
Credit. The Borrower will deposit with the Lender at FHA Endorsement, in the form, as
applicable, of (a) cash, (b) unconditional, irrevocable letters of credit, (c) certified checks, or (d)
certificates of deposit, in such amounts as are required pursuant to the FHA Commitment and/or
this Commitment, and as are acceptable in all respects to the Lender. Any letter of credit shall be
unconditional and irrevocable, shall name the Lender as beneficiary, shall be assignable, and
shall provide for disbursements to be made thereunder on the basis of sight drafts without the
necessity for presentation of any accompanying documents, except as the Lender may expressly
approve in advance. In the event of default under the Note, Mortgage or any other Loan
Document, or in the event of an adverse change in the rating of the bank or financial institution
issuing any letter of credit or certificate of deposit, or to the extent necessary to pay any amounts
in connection with the Insured Loan or Project, any or all letters of credit or certificates of
deposit held by the Lender in connection with the Insured Loan may be converted, without
notice, by the Lender into cash. Upon making of a claim by the Lender under the FHA contract
of mortgage insurance, all such cash and any other escrows held by Lender with respect to the
Insured Loan shall be retained by Lender and applied as Lender deems appropriate, subject to the
FHA Requirements. Without limiting the generality of the foregoing, all letters of credit shall be
in strict compliance with the requirements of the Government National Mortgage Association
(“Ginnie Mae”).
16.
Escrows. The Borrower shall furnish to the Lender at or prior to FHA
Endorsement all escrows and deposits as shall be required by FHA, the FHA Commitment and
this Commitment. Disbursement of such escrows and deposits shall be in accordance with the
FHA Requirements and the requirements of Lender.
17.
Financing Fees and Costs to be Paid By Borrower.
(a)
No later than the FHA Endorsement, the Borrower shall pay to the Lender
the sum of Twenty-three Thousand Dollars ($23,000.00), which is approximately 0.31% of the
Insured Loan Amount, which is comprised of a financing fee of approximately 0.13% and a
placement fee of approximately 0.18% of the Insured Loan. In the event the Insured Loan
Amount is adjusted, such fees shall be adjusted accordingly.
(b)
At FHA Endorsement, the Borrower shall pay to the Lender any amounts
to be paid as a discount pursuant to the Confirmation.
(c) As and when due, the Borrower and any Responsible Party shall promptly pay
the Extension Fee(s) identified on Exhibit B for each approved monthly extension of the
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 6
Required FHA Endorsement Date, and each shall be jointly and severally liable for the payment
of all Extension Fee(s) and any liability for damages for which Lender may be held responsible
by its investor(s) once the Borrower has accepted the terms of the Quote (pursuant to the
provisions of Paragraph 8) should Borrower fail to close the Insured Loan by the Required FHA
Endorsement Date.
(d) The Borrower shall pay all expenses in connection with the making of the
Insured Loan and the disbursement of funds from any escrow established at FHA Endorsement
promptly as they become due. Such expenses shall include, but not be limited to, all Lender’s
legal fees, costs and expenses, including costs and expenses of Lender’s counsel, title insurance
premiums, title continuation charges, other title company fees and expenses, recording and filing
fees and charges, recordation, transfer and other similar taxes, survey costs, FHA fees and
mortgage insurance premiums, all fees and other amounts payable to the Lender pursuant to the
Loan Documents and all other fees and expenses incurred by the Borrower or Lender in
conjunction with the Insured Loan. Notwithstanding the foregoing provisions of Paragraph
17(d), Lender shall be responsible for and shall pay its own legal fees to prepare the Note,
Mortgage and other Loan Documents to be prepared by Lender’s counsel and for Lender’s
counsel to attend Closing, if required; provided, however, if FHA Endorsement does not occur
Borrower shall be responsible for and shall promptly pay such legal fees.
18.
Late Charge. In the event any installment, or part of any installment, due under
the Note becomes delinquent for more than fifteen (15) days, there shall be due at the option of
the holder of the Note, in addition to other sums then due thereunder, a late charge equal to two
percent (2%) of the amount of principal and interest so delinquent, unless under the law of the
state where the Project is located the late charge is considered to be additional interest and when
added to the rate of interest specified in the Note would exceed the maximum rate of interest
permitted.
19.
Insurance. Prior to FHA Endorsement, the Borrower shall provide to the Lender
evidence that the Project is insured pursuant to a fully paid multi-peril policy, including, but not
limited to, fire, extended coverage and vandalism, malicious mischief insurance, commercial
liability insurance, all in form, substance and amount acceptable to Lender, along with flood
insurance, boiler/explosion insurance (if applicable), and/or any other insurance now or hereafter
required by Lender in amount(s) specified by Lender. Use of a blanket policy for multiple
projects shall be subject to Lender’s prior review and written approval. Borrower will provide the
type and the amount of coverage(s) for the Project reasonably specified by Lender at all times
without reduction or diminution throughout the Insured Loan Term. Specifically, and without
limiting the foregoing, the Borrower shall satisfy the following requirements and provide the
following insurance coverages:
(a)
Conditions of Coverage. The mortgagee, loss payee or additional insured
clause, as applicable, must identify Greystone Funding Corporation, 419 Belle Air Lane,
Warrenton, Virginia 20186, as the mortgagee, loss payee or additional insured, as applicable. An
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 7
original or executed certified true copy of each policy is to be provided to Lender prior to
Closing. If a policy is not yet available, then pending issuance, an ACORD 28 (preferable) or an
ACORD 27 is acceptable as evidence of property/hazard insurance, while an ACORD 25-S is
acceptable as evidence of liability insurance. A binder in the form of an ACORD 75-S is
acceptable as evidence for an interim period, provided the term does not exceed sixty (60) days.
The Borrower is to be the named insured on all policies, and Lender is to be named (i) as
mortgagee and loss payee on all property/hazard, boiler explosion, flood and other similar
casualty policies and (ii) as an additional insured on liability policies. All policies must be
endorsed to provide thirty (30) days prior notice of cancellation and/or non-renewal to Lender.
No portion of the annual insurance premium of any policy may be financed.
(b)
Property/Hazard Insurance. The Borrower shall furnish the Lender
evidence of property/hazard insurance in the form of blanket fire and extended coverage
insurance policy or policies, in amounts of not less than 80% of the Project’s replacement value
of all improvements, mortgagor-owned contents, and any other buildings and revenues pledged
to secure the Insured Loan. The policy or policies must be written on a replacement cost basis,
with an agreed amount clause/endorsement and/or no coinsurance clause. If Borrower’s
insurance company will not write a policy without a coinsurance clause, the coinsurance clause
must be written at 100%. The insurance shall be obtained from an insurance company with a
“B+” rate or higher from A.M. Best Company.
(c)
Liability Coverage. The Borrower shall furnish the Lender evidence of
liability coverage in a minimum amount of $500,000.00. The insurance shall be obtained from an
insurance company with a “B+” rate or higher from A.M. Best Company.
(d)
Boiler Explosion Insurance. If steam boilers are operated in conjunction
with the Project, boiler explosion insurance is required in the form of a boiler and machinery
policy broad form, including repair and replacement, but excluding bodily injury, in the
minimum amount of $100,000 per accident per location. The insurance shall be obtained from an
insurance company with a “B+” rate or higher from A.M. Best Company.
(e)
Flood Insurance. For Projects located within special flood hazard areas
in which insurance is available for the Project under the National Flood Insurance Act, flood
insurance is required in the amount equal to the lesser of the outstanding principal balance of the
Insured Loan or the maximum amount of insurance available for the Project. The insurance shall
be obtained from an insurance company with a “B+” rate or higher from A.M. Best Company.
20.
Financial Information. Until the Insured Loan is repaid in full, the Borrower
will provide the Lender with a copy of an annual audit from an independent CPA which shall be
delivered at the time that such annual audit is required to be delivered to FHA pursuant to the
Regulatory Agreement. The Lender may provide such annual audit to parties with a financial
interest in the Insured Loan.
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 8
21.
Inspections. The Lender shall be permitted to inspect the Project as it deems
necessary in its sole discretion. The Lender may at any time provide inspection information to
parties with a financial interest in the Insured Loan. The Borrower agrees to cooperate and assist
the Lender in performing such inspections and, to the extent permitted pursuant to the FHA
Requirements, the Borrower shall reimburse the Lender its reasonable costs and expenses for any
inspections, including, but not limited to, those relating to required building improvements or
repairs, or in connection with the restoration or repair of any damage resulting from any
insurance loss or condemnation.
22.
Use of FHA Debentures. The Borrower acknowledges that the Act gives the
Lender, as an FHA-approved mortgagee, the option to pay annual mortgage insurance premiums
in cash or FHA debentures. The Borrower shall make no claim to any benefit the Lender may be
entitled to receive by utilizing FHA debentures in payment of such annual mortgage insurance
premiums in accordance with the Lender's privilege under the mortgage insurance contract with
FHA.
23.
Use of Funds. Borrower agrees that, subject to the Lender’s obligation to hold
and apply funds in accordance with FHA Requirements, once it makes payment to the Lender or
its agent (or the Lender receives payment on behalf of the Borrower) for interest, principal,
escrows, deposits, late charges, prepayment penalties or otherwise in connection with the Insured
Loan or any documents executed in connection therewith, that the Borrower thereafter has no
right, title or interest whatsoever (either directly or indirectly) to receive any benefits which may
accrue to the Lender or any other party as a result of Lender’s having received, exchanged, or
otherwise sold such funds, securities or other valuables in connection with the Insured Loan.
24.
Additional Conditions. In addition to any other conditions set forth herein and
in the FHA Commitment, the Lender's obligation to make the Insured Loan is contingent upon all
of the following conditions being satisfied in form and substance to the satisfaction of the Lender
in its sole discretion:
(a) The FHA Commitment must be in form and substance satisfactory to the
Lender and in full force and effect, and FHA Endorsement of the Insured Loan in accordance
with the terms of the FHA Commitment and this Commitment must have occurred within the
time period provided in this Commitment.
(b) The Lender and FHA shall approve the Borrower, all principals of the
Borrower, the Responsible Party and the Approvable Entities. Substitute and/or additional
principals of the Borrower must also receive such Lender and FHA approval.
(c) All fees due to Lender shall have been paid.
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 9
25.
Assignment and Waiver. This Commitment, when executed by the parties
hereto, contains the complete and entire terms, conditions and understandings of the parties
hereto of the Lender's agreement to provide the Insured Loan as indicated, and no changes will be
recognized as valid unless they are reduced to writing and similarly executed by the parties. No
specific waiver of any of the terms hereof shall be considered as a general waiver, and any such
waiver shall be in writing. This Commitment may not be assigned by Borrower without the
written consent of the Lender. The Lender may assign this Commitment to an assignee, which is
financially capable of performing the Lender's obligations hereunder in accordance with the
express terms hereof.
26.
Interpretation.
(a) In this Commitment, unless the context otherwise requires, any certificate,
letter or opinion required to be given pursuant to this Commitment shall mean a signed document
attesting to or acknowledging the circumstances, representations, opinions of law or other
matters therein stated or set forth.
(b) Nothing in this Commitment expressed or implied is intended or shall be
construed to confer upon, or give to, any person, other than the Lender and the Borrower, any
right, remedy or claim under or by reason of this Commitment or any covenants, promises and
agreements herein contained.
(c) If any one or more of the covenants or agreements provided herein on the part
of the Borrower to be performed should be contrary to law, then such covenant or covenants or
agreement or agreements shall be deemed separable from the remaining covenants and
agreements hereof and shall in no way affect the validity of the other provisions of this
Commitment.
(d) In the event of any inconsistencies between the terms and conditions of this
Commitment and the terms and conditions of the FHA Commitment or of the Loan Documents,
the terms and conditions of the FHA Commitment or the Loan Documents shall supersede the
terms and conditions of this Commitment. Notwithstanding anything in this Commitment to the
contrary, any requirements necessary to conform to the terms of the FHA Commitment, though
not specifically mentioned herein, shall be deemed a requirement hereunder.
This Commitment is expressly subject and subordinate to all FHA Requirements. Any
provision of or changes in the Act or the FHA Requirements which affect any term or provision
of the Insured Loan or this Commitment shall be deemed to modify this Commitment.
(e) The Borrower agrees to comply with all applicable FHA Requirements in
connection with the Project and the Insured Loan.
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 10
27.
Books and Records. The Borrower shall maintain its books and records in
compliance with the FHA Requirements.
28.
Secondary/Additional Financing. Without the prior express written approval of
FHA and the Lender, no secondary financing (or other debt) with respect to the Project shall be
permitted, as long as the Insured Loan remains outstanding.
29.
Brokerage Indemnity. The Borrower represents that no broker brought about the
issuance of this Commitment or the making of the Insured Loan pursuant hereto and the
Borrower agrees to and does hereby indemnify the Lender and hold it harmless from and against
any and all claims, demands and liability for brokerage commissions, assignment fees, finder's
fees or other compensation arising from the issuance of this Commitment or the making of the
Insured Loan which may be asserted against the Lender by any person or entity.
30.
Survival. All of the terms and provisions set forth in this Commitment shall
survive FHA Endorsement and shall continue in full force and effect until the Lender shall have
received payment in full of the Insured Loan, and all interest and all fees due and payable from
the Borrower as set forth in this Commitment, and all other sums provided for in the Loan
Documents.
31.
Representations and Warranties. In order to induce the Lender to issue this
Commitment and make the Insured Loan in accordance with the terms and conditions hereof, the
Borrower hereby represents and warrants as follows:
(a) the Borrower is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization and that Borrower is currently (or by FHA
Endorsement will be) qualified to do business in the jurisdiction in which the Project is located if
not the same as the jurisdiction of its organization;
(b) the Borrower has full authority to execute and deliver this Commitment, the
Loan Documents and all other documents required pursuant hereto and to perform all of the
obligations set forth hereunder and thereunder;
(c) this Commitment evidences the Borrower's valid, binding and enforceable
agreement; and
(d) neither the execution of this Commitment nor the consummation of the
transactions described herein is a violation of the Borrower's organizational documents or of any
contract, law, judgment, order, rule or regulation by which it is bound.
32.
Credit Subsidy. The Borrower hereby acknowledges that Lender’s ability to
proceed to FHA Endorsement is wholly contingent upon HUD’s ability to allocate sufficient
credit subsidy, if required, for the Insured Loan.
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 11
33.
Applicable Law. By accepting this Commitment, the Borrower (and each
Responsible Party executing this Commitment to evidence its consent and agreement to the terms
of this Commitment) agrees that it was negotiated and made in the Commonwealth of Virginia,
that any action hereunder shall only be brought in the federal or local courts in the
Commonwealth of Virginia, and that the rights and obligations of the parties with respect to this
Commitment (including each Responsible Party) shall be determined in accordance with the laws
of the Commonwealth of Virginia including any applicable federal law, without giving effect to
any conflict of laws provisions.
34.
Advertising. Execution and delivery of this Commitment by the Borrower shall
serve as the Borrower’s consent and authorization to the release and use by Lender, and its
affiliates, in conjunction with the preparation and distribution of advertising, promotional and
other business materials by Lender, of (i) the identity and location of the Borrower, (ii) the name
and location of the project(s) financed, (iii) a description of the transaction(s) and the service(s)
provided by Lender and (iv) other related information which may be pertinent to the
transaction(s) and/or the service(s) provided to Borrower by Lender (collectively the
“Transaction Information”); provided, however, the Transaction Information released to third
parties and/or utilized by Lender shall not include any proprietary and other confidential
information of the Borrower clearly identified or marked as such by the Borrower. In the event
the Project is to be constructed or substantially renovated, Borrower agrees to provide a sign (at
its expense) indicating the financing for the Project has been provided by Lender, which sign
shall be prominently located adjacent and visible to the major road bordering the Project, and in
form, substance, size and location approved by the Lender. Any consent and authorization
provided to Lender herein shall inure to the benefit of Lender, its affiliates and their respective
successors and assigns.
35.
General Conditions; Effectiveness of Commitment. The Borrower shall
cooperate with the Lender in supplying any and all information to the Lender promptly upon its
request. This Commitment will become effective upon the Lender’s receipt of the Borrower’s
acceptance of this Commitment with the signature(s) of the Responsible Party and the Good
Faith Deposit.
36.
No Material Adverse Changes; Lender's Right to Terminate. The Lender may
terminate this Commitment at its sole discretion, upon a good faith determination that after the
date hereof and prior to FHA Endorsement: (a) previously undisclosed adverse information
concerning the Borrower, its principals, any Responsible Party and/or the Project is disclosed to
or discovered by the Lender; (b) there has been a material adverse change in (i) the financial
condition of the Borrower, its principals and/or any Responsible Party; (ii) the rental market
bearing on the Project; or (iii) other matters the Lender considers or considered relevant in underwriting the Insured Loan; or (c) there comes into effect any amendment, modification or change
in FHA Requirements, which, in the Lender’s opinion, materially and adversely effects the
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7, 2013
Page 12
Insured Loan transaction, or creates for the Lender additional costs or expenses of the transaction
which the Borrower is unwilling to pay or reimburse, or creates for the Lender any additional
obligation or liability which the Borrower is unwilling or unable to undertake, whereupon
Borrower shall be liable to Lender in accordance with the provisions of Paragraph 37. In
addition, Lender, at its option, may at any time terminate this Commitment in its sole discretion
if the parties fail to agree upon the terms outlined in the Quote, and Lender shall refund the Good
Faith Deposit to the Borrower less the amount of Lender’s actual legal fees and expenses
incurred. The Lender shall have no liability to the Borrower for any termination under this
paragraph.
37.
Acceptance of Commitment. To evidence Borrower’s acceptance of this
Commitment, please execute below and return by fax to Lender by 5:00 p.m. EST, February 14,
2013, with the original signed copy returned by overnight delivery by February 15, 2013.
Borrower agrees to wire transfer or cause to be wired transferred to Lender in accordance with
the wiring instructions as set forth on Exhibit C attached hereto and made a part hereof, the
deposit of 0.50% of the Insured Loan Amount (the “Good Faith Deposit”) in the amount of
Thirty-seven Thousand Two Hundred Nineteen Dollars ($37,219.00), no later than 5:00 p.m.
EST on February 14, 2013. Subject to the remainder of this paragraph, such Good Faith Deposit
shall be returned to the Borrower: (a) less the amount of Lender’s actual legal fees and expenses
incurred, if the Lender does not issue a Quote acceptable to Borrower; or (b) at FHA
Endorsement. However, such Good Faith Deposit shall be forfeited if for any reason FHA
Endorsement does not occur on or before the Required FHA Endorsement Date stated in the
Confirmation, as such date may be validly extended pursuant to the terms set forth herein.
Forfeiture of the Good Faith Deposit shall not constitute liquidated damages, and in addition
thereto, Borrower and the Responsible Party shall be fully liable, jointly and severally, for
damages, including, but not limited to, (i) origination, financing, and other fees due and payable
by Borrower hereunder (which Borrower and the Responsible Party acknowledge are deemed
fully earned by Lender as of the date hereof), (ii) all losses, costs, expenses, and reasonable
attorney fees incurred by Lender in anticipation of, and preparation for, the Closing of the Insured
Loan notwithstanding anything in this Commitment to the contrary, and (iii) all losses, costs,
expenses, and reasonable attorney fees incurred by Lender resulting from Lender’s inability to
meet its contractual obligation(s) to its investor(s) made by Lender in reliance on Borrower’s
agreement establishing the Locked Terms.
[Signature Pages to Follow]
Converse Ranch, LLC
Re: Converse Ranch
FHA #: 115-35664
February 7,2013
Page 13
Please execute this Commitment and return it, as indicated in Paragraph 37 herein.
Very truly yours,
GREYS TONE FUNDING CORPORATION
. i
By:
I(
I'
1/\
.,
\
Lisa Anderson
Vice President
ACCEPT ANCE:
The undersigned hereby accepts the foregoing Commitment and agrees (i) to perform or
cause to be performed all of the obligations on the part of the Borrower contained therein, (ii) to
be bound by all of the terms, provisions and conditions thereof and (iii) to cause the FHA
Endorsement of the Insured Loan to be consummated.
BORROWER:
[Signature(s) of Responsible Party on Next Page]
Converse Ranch, LLC
Re: Converse Ranch
FHA #: I 15-35664
February 7,2013
Page 14
The undersigned hereby consents to the release of personal credit information as may be
required by Lender. If such credit information is satisfactory to Lender, the undersigned,
jointly and severally, as the Responsible Party referred to in the foregoing Commitment,
hereby agree(s) to be responsible for, and hereby agrees to be jointly and severally liable to
Lender, following Borrower's telephonic acceptance of the Lender's Quote, for the
payment of all FHA Initial Endorsement Extension Fees and/or FHA Final Endorsement
Extension Fee(s) incurred by Borrower and any damages for which the Responsible Party
has agreed to be responsible, and to indemnify Lender with respect to the foregoing, all as
more particularly outlined in the Commitment, the terms of which are hereby incorporated
by reference herein.
Social Security Number:
By:
Name:
Date:
_
20-8836427
(Tax lD)
CONFIRMATION
Insured Loan Terms
This Confirmation is issued pursuant to Paragraph 8 of the commitment dated February 7, 2013
from Greystone Funding Corporation ("Lender") to Converse Ranch, LLC, a Texas limited
liability company ("Borrower"),
for the project known as "Converse Ranch", located in
Converse, Bexar County, Texas (the "Commitment"). Unless otherwise defined, all terms used
herein shall have the meanings set forth in the Commitment.
Based on Borrower's acceptance
of Lender's telephonic Quote, the Locked Terms for the Insured Loan are:
1. Type of Project:
124 Unit Apartment Complex
2.
480 Months
Amortization
Term:
from the Commencement
(see Item 10 below).
3. Name of Project:
Converse Ranch
4. Location of Project:
Converse, Bexar County, Texas
5. FHA Project #:
115-35664
6. Insured Loan Amount:
$7,443,700.00
7. Variance of Insured Loan Amount:
+/- five percent
(5%), subject
amendment of the FHA Commitment
8. Discount:
Not Applicable
9. FHA Note Rate:
2.98%
10. Commencement
of Amortization:
to
of
an
The first day of the second calendar month
following FHA Endorsement.
11. Prepayment Restriction Period:
One (1) year from the Commencement
Amortization.
12. Pre-Payment
Commencing on the first (1 st) day after the
expiration of the Prepayment
Restriction
Period, the Insured Loan may be prepaid in
full upon payment of a prepayment penalty
equal to nine percent (9%) of the amount of
such prepayment, which prepayment penalty
shall decrease by one percent (1 %) for each
Penalty:
of
succeeding full twelve (12) month period of
the Insured Loan Term.
13. Required FHA Endorsement Date:
14. Maximum Number of Monthly FHA
Endorsement Extensions:
15. Extension Fee (FHA Endorsement):
April 30, 2013
Two (2); each subject to the prior approval
of Lender and FHA (if required), in
consideration of Lender's receipt of an
Extension Fee prior to commencement.
0.375% of the Insured Loan Amount for
each monthly extension period or portion
thereof. All monthly extension period(s) are
subject to the prior approval of Lender and
FHA (if required). (Non-refundable)
In the event FHA Endorsement shall not have occurred by the Required FHA Endorsement Date,
the Required FHA Endorsement Date may be extended by the Lender for monthly period(s),
subject to FHA approval (if required), upon the receipt of an Extension Fee on or before the
business day prior to the first day of each monthly extension. The Lender shall have no obligation
to proceed to FHA Endorsement after the Required FHA Endorsement Date unless such
Extension Fee(s) for each monthly extension shall have been paid.
Borrower and Responsible Party shall be liable to Lender in regard to the Insured Loan as more
particularly set forth in the Commitment.
[Signature Pages to Follow]
GREYSTONE FUNDING CORPORATION
By:
Date:
Lisa Anderson
Vice President
February 15,2013
The undersigned
hereby acknowledge
receipt of this Confirmation.
BORROWER:
CONVERSE RANCH, LLC,
a Texas limited liability company
~
By:
__
H_o_US_in_g+-:.~HtJiloL-
Il~e:
L~o~u~~~~~~~
U'tItle:
_
__
_-'-P.:..;:re:.::.si:.::.de=;r-=-=='------\-+-t\-\--J-
Date:
RESPONSIBLE PARTY:
Housing
.
Ranch
LLC,
Authori
its sole member
: Lourdes
~
Converse
Social Security Number: _20-8836427
Tax 10
Ca
a .
By:
Name:
------------Date:
_
April 4, 2013
RESOLUTIONS 5337 AND 13SEN-04-01, AUTHORIZING THE REFINANCING OF
CROWN MEADOWS TOWNHOMES IN THE APPROXIMATE AMOUNT OF
$11,250,200, THE EXECUTION OF AN APPLICATION LETTER WITH RED
MORTGAGE CAPITAL, LLC, THE EXECUTION AND SUBMISSION TO HUD OF ALL
DOCUMENTS NECESSARY TO SECURE FHA MORTGAGE INSURANCE OF THE
REFINANCING LOAN, THE EXECUTION OF A COMMITMENT TO INSURE THE
REFINANCING LOAN, AND THE NEGOTIATION AND EXECUTION OF ALL FINAL
DOCUMENTS NECESSARY FOR THE REFINANCING; AND OTHER MATTERS IN
CONNECTION THEREWITH.
Lourde!lt C,~tro Ramirez
Preside~nd
CEO
fiIAj
Chief Financial Officer
REQUESTED ACTION:
Consideration and approval regarding Resolutions 5337 and 13SEN-04-01, authorizing the
refinancing of Crown Meadows Townhomes in the approximate amount of $11,250,200, the
execution of an application letter with RED Mortgage Capital, LLC, the execution and
submission to HUD of all documents necessary to secure FHA Mortgage Insurance of the
refinancing loan, the execution of a commitment to insure the refinancing loan, and the
negotiation and execution of all final documents necessary for the refinancing; and other
matters in connection therewith.
PURPOSE:
The purpose of the refinance is to reduce current interest rates on obligations, increase cash
flow, and gain access to reserves that are currently restricted under the loan agreements for the
Crown Meadow's Townhomes, (the property), owned by the Sendero I Public Facility
Corporation. These resolutions authorize SAHA staff to negotiate and execute all documents
required to refinance the existing indebtedness without further action by the Board.
FINANCIAL IMPACT:
The new loan will have a 22-year term and amortization period, and will produce approximately
$361,000 in additional annual cash flow. The effective interest rate on the new loan is estimated
at 3.35%, over 4% below the current effective bond interest rate of 7.42%. The refinance will
also release approximately $500,000 of restricted bond reserves.
SUMMARY:
In February 2013, SAHA staff presented to the Board an analysis of the property's operating
performance. The results of the review determined that although the property had improved its
operations, the structure of, and amount of funds required for, the property's debt service was
depleting much of its excess cash flow. As a result of the findings, it was determined that the
property would need to refinance its existing debt in order to maximize its cash flow. Over the
past month, SAHA has solicited and received proposals to refinance the existing bonds for the
property. Attached is a schedule, which compares the proposals received from Greystone
Funding Corporation, and RED Mortgage Capital. A third proposal was solicited, but wa~ not
competitive based on the projected terms. The proposals were evaluated based on interest rate,
Agenda Item No. 13
April 4, 2013
total loan cost, and financing term. As a supplement to the above criteria, a discounted cash
flow analysis was conducted to determine which proposal would add the most value to the
agency. The results are presented in the chart below:
Effective
Interest Rate
Mortgagor
REDCapital
Greystone
*
*
Total Loan Cost
Financing Term
Net Present Value of Cash
Flows
3.35%
$
15,681,864
264 Months
$
2,091,941
3.35%
$
15,706,080
264 Months
$
2,077,393
* Effective interest rate includes .60% Mortgage Insurance Premium {MIP}
Based on a review of the proposals, it is recommended that SAHA select the offer from RED
Mortgage Capital, which provides the best overall refinancing option.
ATTACHMENTS:
Resolution 13SEN-04-01
Resolution 5337
Application Letter
Sendero I PFC Loan Comparison Schedule
Sendero I PFC - Proposed Sources & Uses
The undersigned officer of the Housing Authority of the City of San Antonio, Texas, a
Texas housing authority created pursuant to the laws of the State of Texas (“SAHA”), hereby
certifies as follows:
1.
“Open Meetings Act”), and the bylaws of SAHA, the Board of Commissioners of SAHA (the
RESOLUTION 5337 AUTHORIZING THE REFINANCING OF CROWN
MEADOWS TOWNHOMES IN THE APPROXIMATE AMOUNT OF
MORTGAGE CAPITAL, LLC, THE EXECUTION AND SUBMISSION TO
HUD OF ALL DOCUMENTS NECESSARY TO SECURE FHA MORTGAGE
INSURANCE OF THE REFINANCING LOAN, THE EXECUTION OF A
COMMITMENT TO INSURE THE REFINANCING LOAN, AND THE
NEGOTIATION AND EXECUTION OF ALL FINAL DOCUMENTS
NECESSARY FOR THE REFINANCING; AND OTHER MATTERS IN
CONNECTION THEREWITH
of the Board.
2.
SAHA.
President and CEO
RESOLUTION 5337
RESOLUTION 5337 AUTHORIZING THE REFINANCING OF CROWN
MEADOWS TOWNHOMES IN THE APPROXIMATE AMOUNT OF
Sendero I Public Facility Corporation (“Sendero I”) as a nonprofit public facility corporation to
acquire and finance the purchase of a property known as Crown Meadows Townhomes (the
“Project”), a 192-unit multifamily housing facility located in San Antonio, Bexar County, Texas;
and
WHEREAS, Sendero I issued its Sendero I Public Facility Corporation Multifamily
Housing Revenue Bonds (Crown Meadows Townhomes Project) Series 2003A in the original
aggregate principal amount of $12,000,000, and its Sendero I Public Facility Corporation
Multifamily Housing Revenue Bonds (Crown Meadows Townhomes Project) Subordinate Series
2003B in the original aggregate principal amount of $1,025,000 (Series A and Series B are,
collectively, the “Bonds”); and
WHEREAS, SAHA staff has determined that the existing mortgage loan evidenced by
the Bonds could be refinanced with a significant reduction in the interest rate, and requests that
the Board of Commissioners of SAHA (the “Board”) approve a refinancing with Red Mortgage
Capital, LLC (“Red Capital”), including HUD/FHA mortgage insurance; and
WHEREAS, SAHA staff recommends the Board approve the refinancing of the Project
with Red Capital in the approximate amount of $11,250,200, and the negotiation and execution
of all documents deemed necessary by staff to secure and close on such refinancing; and
WHEREAS, the Board has determined that it is in the public interest and to the benefit of
the citizens and residents of San Antonio to authorize Sendero I to enter into the transaction
described above so that the existing indebtedness can be refinanced at a lower interest rate; and
authorized herein is in furtherance of the public purposes of SAHA and Sendero I;
NOW, BE IT THEREFORE RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE HOUSING AUTHORITY OF THE CITY OF SAN ANTONIO, TEXAS, THAT:
Section 1.
The proposed refinancing of the Project is hereby authorized and
Secretary and/or Treasurer, or any of them, of SAHA and/or Sendero I, as appropriate, are
hereby authorized to: negotiate and execute any and all documentation required for the
refinancing of the Project, including but not limited to an Application Letter with Red Capital,
documents necessary to apply for and secure HUD/FHA mortgage insurance for the refinancing
loan, a commitment for HUD/FHA mortgage insurance, any promissory notes, deeds of trust,
regulatory agreements, assignments of rents and leases, security agreements, agreements relating
to reserves, financing statements, letters of credit, amendments to the organizational documents
of Sendero I or creation of new single-member limited liability companies, and other documents
(the “Documents”) required to close on the refinancing. The President, any Vice President, the
Secretary and/or Treasurer, or any Assistant Secretary and/or Treasurer, or any of them, of
SAHA and/or Sendero I, as appropriate, are authorized to negotiate and approve such changes in,
or additions to, the terms of any of the Documents, including amendments, renewals,
assignments, and extensions, as such officers shall deem necessary or appropriate upon the
advice of counsel to SAHA and/or Sendero I, and approval of the terms of any of the Documents
by such officers and this Board, and the officers and Board of Directors of Sendero I, shall be
conclusively evidenced by the execution and delivery of such Documents.
Section 2.
The officers of this Board and Sendero I, or any of them, are authorized to
take any and all action necessary to carry out and consummate the transactions described in or
contemplated by the documents approved hereby or otherwise to give effect to the actions
authorized hereby and the intent hereof.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
*
*
*
The undersigned officer of the Sendero I Public Facility Corporation, a Texas nonprofit
public facility corporation created pursuant to the laws of the State of Texas (“Sendero I”),
hereby certifies as follows:
1.
“Open Meetings Act”), and the bylaws of Sendero I, the Board of Directors of Sendero I (the
RESOLUTION 13SEN-04-01 AUTHORIZING THE REFINANCING OF
of the Board.
2.
Sendero I.
Secretary/Treasurer
RESOLUTION 13SEN-04-01
RESOLUTION 13SEN-04-01, AUTHORIZING THE REFINANCING OF
Sendero I Public Facility Corporation (“Sendero I”) as a nonprofit public facility corporation to
acquire and finance the purchase of a property known as Crown Meadows Townhomes (the
“Project”), a 192-unit multifamily housing facility located in San Antonio, Bexar County, Texas;
and
WHEREAS, Sendero I issued its Sendero I Public Facility Corporation Multifamily
Housing Revenue Bonds (Crown Meadows Townhomes Project) Series 2003A in the original
aggregate principal amount of $12,000,000, and its Sendero I Public Facility Corporation
Multifamily Housing Revenue Bonds (Crown Meadows Townhomes Project) Subordinate Series
2003B in the original aggregate principal amount of $1,025,000 (Series A and Series B are,
collectively, the “Bonds”); and
WHEREAS, SAHA staff has determined that the existing mortgage loan evidenced by
the Bonds could be refinanced with a significant reduction in the interest rate, and requests that
the Board of Directors of Sendero I (the “Board”) approve a refinancing with Red Mortgage
Capital, LLC (“Red Capital”), including HUD/FHA mortgage insurance; and
WHEREAS, SAHA staff recommends the Board approve the refinancing of the Project
with Red Capital in the approximate amount of $11,250,200, and the negotiation and execution
of all documents deemed necessary by staff to secure and close on such refinancing; and
WHEREAS, the Board has determined that it is in the public interest and to the benefit of
the citizens and residents of San Antonio to authorize Sendero I to enter into the transaction
described above so that the existing indebtedness can be refinanced at a lower interest rate; and
authorized herein is in furtherance of the public purposes of Sendero I;
NOW, BE IT THEREFORE RESOLVED BY THE BOARD OF DIRECTORS OF THE
SENDERO I PUBLIC FACILITY CORPORATION, THAT:
Section 1.
The proposed refinancing of the Project is hereby authorized and
Secretary and/or Treasurer, or any of them, of Sendero I, are hereby authorized to: negotiate and
execute any and all documentation required for the refinancing of the Project, including but not
limited to an Application Letter with Red Capital, documents necessary to apply for and secure
HUD/FHA mortgage insurance for the refinancing loan, a commitment for HUD/FHA mortgage
insurance, any promissory notes, deeds of trust, regulatory agreements, assignments of rents and
leases, security agreements, agreements relating to reserves, financing statements, letters of
credit, amendments to the organizational documents of Sendero I or creation of new singlemember limited liability companies, and other documents (the “Documents”) required to close
on the refinancing. The President, any Vice President, the Secretary and/or Treasurer, or any
Assistant Secretary and/or Treasurer, or any of them, of Sendero I, are authorized to negotiate
and approve such changes in, or additions to, the terms of any of the Documents, including
amendments, renewals, assignments, and extensions, as such officers shall deem necessary or
appropriate upon the advice of counsel to Sendero I, and approval of the terms of any of the
Documents by such officers and this Board, shall be conclusively evidenced by the execution
and delivery of such Documents.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
*
*
*
APPLICATION LETTER
March 26, 2013
Mr. Arthur Mikeska
818 S. Flores Street
San Antonio, TX 78204
Re:
FHA Section: 223(f)
Project: Legacy at Crown Meadows
Location: San Antonio, TX
Number of Units: 192
Estimated Loan Amount: $11,250,000
Loan Term: Approximately 22 years
Loan Amortization: Approximately 22 years
Estimated Mortgage Rate: 2.75%
Dear Mr. Mikeska:
Red Mortgage Capital, LLC (“RMC”) is pleased to accept your application for a loan to be insured by the
U.S. Department of Housing and Urban Development (“HUD” or “FHA”), in the manner, to the extent and on the
terms as are set forth below in this Application Letter.
It is hereby agreed that RMC, as mortgagee, shall have the exclusive right to process an application to FHA
(the “FHA Application”) for a Firm Commitment (the “FHA Commitment”) to insure a first mortgage loan (the
“Loan”) to be secured by the referenced project (the “Project”). As compensation for its services, you agree to pay
RMC a fee (the “Origination Fee”) in an amount equal to 0.75% of the Loan that FHA endorses for insurance. The
Origination Fee shall be fully earned upon the issuance of an FHA Commitment on terms substantially equivalent to
those you requested in the FHA Application or on terms otherwise accepted by you (in either instance, an
“Acceptable FHA Commitment”). A draft of the Lender’s Commitment and the General Conditions are attached to
this Application Letter and are incorporated herein by reference. It is understood that this Origination Fee is earned
solely for services rendered in obtaining an Acceptable FHA Commitment. The Origination Fee shall be due and
payable on the first to occur of (a) the date FHA endorses the loan for insurance (the "Closing Date") or (b) the
sixtieth (60th) day subsequent to the date of an Acceptable FHA Commitment.
In addition to the Origination Fee, RMC will require an application fee (the “RMC Application Fee”) equal
to $22,000 payable upon your acceptance of this Application Letter. The RMC Application Fee includes a $5,000
non-refundable processing retainer which will be applied against the Origination Fee and/or RMC’s actual costs (as
defined below), when due. The transaction has the following estimated processing costs:
$8,000
$5,000
$4,000
$5,000
$22,000
Appraisal
Physical Needs Assessment (Engineering Reports)
Environmental Site Assessment
RMC Processing Retainer
Total
Actual amounts payable to third party providers in excess of the above estimated amounts, if any, shall be
paid by the Borrower. Unexpended funds (other than the RMC Processing Retainer, which shall be earned upon our
receipt of this Application Letter) will be returned or credited to you at the time of loan closing. You shall also be
responsible for paying (or reimbursing RMC for) the following costs and expenses:
(i)
All application fees to FHA prior to RMC submitting the FHA Application to HUD;
(ii)
The cost of third party reports not listed above, if applicable, prior to ordering of these reports by
RMC;
FHA-Standard 2.28.11
Legacy at Crown Meadows
March 26, 2013
Page 2 of 3
(iii)
Other out-of pocket costs and expenses, such as credit reports, inspection costs, and the like (the
“Actual Costs”), estimated by RMC not to exceed $7,500; and
(iv)
Costs and expenses associated with closing the Loan, e.g., title insurance premiums, survey costs,
attorney fees, etc., all of which will be estimated and/or quantified subsequent to the issuance of an
Acceptable FHA Commitment.
You will be called upon to provide certain information and documentation in support of the FHA
Application. You are responsible for all costs and expenses incurred in obtaining and providing that information and
documentation.
If for any reason (a) FHA fails to issue an Acceptable FHA Commitment or (b) you terminate this
Application Letter or otherwise instruct us to withdraw your FHA Application; you nonetheless shall (i) pay or
reimburse RMC for Actual Costs; (ii) abandon the pursuit of FHA mortgage insurance for the project and (iii) forfeit
the RMC Processing Retainer identified above. If, upon issuance of an Acceptable FHA Commitment, you fail or
refuse to close the Loan, for any reason, you nonetheless shall pay (i) the Origination Fee to RMC and (ii) Actual
Costs. The foregoing amounts shall be immediately due and payable upon your receipt of an itemized billing from
RMC, time being of the essence.
While we cannot guarantee the results of our efforts, nor that FHA will actually issue an Acceptable FHA
Commitment, based upon the information you have provided to us, current market data, the criteria generally
applied by FHA, and our experience in financings of this nature, we believe it reasonable to expect that FHA will
issue an Acceptable FHA Commitment.
It is understood and agreed that the undertaking RMC has agreed to in this Application Letter and your
payment of the fees described herein, does not obligate RMC or any of its affiliates to make a loan to you or to
assure the issuance of an Acceptable FHA Commitment. RMC’s sole obligation hereunder is to provide the services
that we have described.
You understand that the mortgage rate at which your FHA Application is processed may or may not be the
applicable mortgage rate at the time of funding. If FHA issues an Acceptable FHA Commitment, it is agreed that
RMC shall have the exclusive right to fund and service the Loan. Prior to funding the Loan, RMC shall provide you
with “Pricing Terms” (mortgage interest rate, prepayment provisions, etc.) for your consideration. If and when those
Pricing Terms are formally accepted by you and RMC, RMC will issue a Confirmation Letter describing and
confirming the Pricing Terms.
Unless required by law or legislative process, neither this Application Letter, any of the information
contained herein, any financial or other advice rendered by RMC pursuant hereto, nor any of the terms hereof may
be disclosed by you or your representatives to any competitor or potential competitor of RMC, to any client or
potential client of RMC, or to any other party (except to representatives of HUD) in any manner without the prior
written approval of RMC.
Nothing in this Application Letter creates or is intended to create a joint venture or any agency or fiduciary
relationship, duty or obligation between the parties. Borrower hereby agrees and acknowledges that the
commitments and services of RMC are being provided as an independent contractor at arm’s length.
This agreement shall be binding upon the heirs, successors and assigns of the parties and upon the
successors to and assigns of the FHA Commitment and the real property site to which it pertains. The parties have
made and executed this agreement in exchange for the mutual commitments made herein. By executing this
Application Letter, you represent that the mortgagor has the power and authority to enter into this Application Letter
and the Loan. The mortgagor is under no obligation to any other mortgagee or other prospective lender with respect
to the transactions contemplated by this Application Letter. If you sell the Project or any interest therein, it is agreed
that any rights RMC has hereunder will be honored and assumed by the acquiring party.
March 26, 2013
Page 3 of 3
Borrower hereby gives permission to RMC to issue press releases and advertising relating to the Loan and
RMC’s participation in the transaction. Such media and marketing materials may include, among other things,
information about the location of the Property, the number of units, the amenities associated with the Property, and
the Loan terms (including economic terms such as the interest rate and amortization terms).
If this agreement is acceptable to you, please so indicate below and return one (1) originally executed copy
of this agreement to us on or before Tuesday, April 30, 2013, along with your check in the amount of $22,000 for
the RMC Application Fee made payable to Red Mortgage Capital, LLC. These funds will be applied against the
Origination Fee and/or RMC’s “Actual Costs”, which will be due to RMC as described earlier in this agreement.
We look forward to working with you in this endeavor.
Sincerely,
Red Mortgage Capital, LLC
By:
Bradley C. Cain, Director
AGREED AND ACCEPTED BY:
Borrower Entity: ____________________
By:_______________________________
Name:____________________________
Title: _____________________________
Date: ____________________________
DRAFT
LENDER’S COMMITMENT LETTER
Date
Name
Address
City, State Zip
Dear :
We are in receipt of a Firm Commitment for mortgage insurance (the “FHA
Commitment”) from the Department of Housing and Urban Development (“FHA”), a
copy of which is attached hereto as Exhibit 1. This letter (the “Commitment Letter” or
“Lender’s Commitment”) constitutes the commitment of Red Mortgage Capital, LLC, a
Delaware limited liability company (the “Lender”) to make the below described loan (the
“Loan”) to the below described Borrower (the “Borrower”), which FHA has committed
to insure, pursuant to the FHA Commitment, on the terms and conditions set forth herein
and in the Exhibits that are identified below, attached hereto and are incorporated herein
as an integral part of this Commitment Letter.
A.
The following specific information is incorporated herein:
Borrower Name:
___________________
Borrower Address:
___________________
Project Name:
___________________
Project Address:
___________________
FHA Project No.
___________________
Estimated Loan Amount:
$ _________________
Processed Interest Rate:
____%
Section of the National Housing Act
under which the Loan is to be insured
Section _______
Loan Term:
_____________
Origination Fee:
_________ % of Loan Amount
Good Faith Deposit:
0.50 % of Loan Amount
B.
The following describes the procedures pursuant to which the final loan
amount and final interest rate will be determined:
Revised 9.16.10
Name of Borrower
Date
Page 2 of 4
(1)
FHA processed the Loan and issued the FHA Commitment on the basis of
the Processed Interest Rate. The Processed Interest Rate is an assumed rate that may or
may not be the final interest rate (the “Final Interest Rate”) upon which the Loan will be
made by the Lender and insured by FHA. To the extent that the Final Interest Rate is
higher or lower than the Processed Interest Rate, the Loan amount may have to be
adjusted to reflect the debt service requirements of the Final Interest Rate. Once the Final
Interest Rate is established, it is likely that the Lender will have to obtain an amendment
to the FHA Commitment, which amendment will reflect, among other things, the Final
Interest Rate, a revised Loan amount and revised Loan payment terms. Although FHA
will consider the effect of such Final Interest Rate upon debt service requirements,
Lender is solely responsible for the determination of such Final Interest Rate. The Lender
shall not be obligated to make the Loan until this amendment to the FHA Commitment
has been issued.
(2)
The Borrower understands that changing conditions in the financial
market will impact upon the Final Interest Rate and the “Pricing Terms” of the Loan.
Upon direction from the Borrower and the prior receipt by the Lender of the “Good Faith
Deposit” described below, the Lender shall offer Pricing Terms to the Borrower in the
form of a “Rate Lock Letter”. These Pricing Terms shall include but not be limited to an
interest rate, discount points, prepayment penalties and restrictions and extension fees.
Upon receipt of the Rate Lock Letter, the Borrower may accept or reject the Pricing
Terms described in the Rate Lock Letter. If the Borrower elects to accept those Pricing
Terms, the Borrower shall evidence that acceptance by executing and returning a
duplicate copy of the Rate Lock Letter to the Lender, which acceptance shall be binding
and irrevocable and constitute the Borrower’s agreement to a mandatory closing
obligation, in the event that the Lender is able to confirm the Pricing Terms. Upon the
receipt by the Lender of this fully executed and accepted Rate Lock Letter, the Lender
shall use its best efforts to confirm those Pricing Terms, i.e., notwithstanding its
acceptance of the Rate Lock Letter, the Borrower understands and agrees that the Pricing
Terms are not final, nor binding on the Lender, until such time as the Lender issues to the
Borrower its “Confirmation Letter”, which Confirmation Letter, and only this
Confirmation Letter, shall constitute the final and binding agreement between the
Borrower and the Lender as to the Pricing Terms that will apply to the Loan.
(3)
It is a condition precedent to the Lender’s obligation to offer Pricing
Terms, i.e., issue its Rate Lock Letter to the Borrower, that the Borrower first remit to the
Lender, in immediately available funds, the “Good Faith Deposit” in an amount stated in
Section A above. In the event that either (a) Pricing Terms are not accepted by the
Borrower, i.e., the Borrower never accepts the Rate Lock Letter or (b) the Lender is
unable to confirm the Pricing Terms evidenced by the issuance of its Confirmation Letter,
then the Good Faith Deposit shall be returned to the Borrower. If the Rate Lock Letter is
accepted by the Borrower and a Confirmation Letter is issued by the Lender, then the
Good Faith Deposit will be (i) forfeited in the event the Loan is not funded or (ii)
Revised 9.16.10
Name of Borrower
Date
Page 3 of 4
returned to the Borrower in the event the Loan is funded on the basis of the Pricing
Terms described in the Confirmation Letter and upon RMC's receipt of the GNMA
mortgage backed securities ("MBS") obtained for the Loan (usually within 30 days of the
Closing).
C.
The Borrower agrees to the following deposits, fees and expenses:
(1).
The Borrower shall pay to the Lender, in immediately available
funds:
(a)
The Good Faith Deposit;
(b)
The Origination Fee;
(c)
Any extension or other fees and deposits required
pursuant to the terms of the Confirmation Letter;
(d)
An amount sufficient to reimburse the Lender for the
costs and expenses incurred in issuing the GNMA
mortgage backed securities, if applicable (estimated at
$_____);
(e)
The amount of the Lender’s legal fees (estimated at
$______); and
(f)
The Lender's out-of-pocket costs and expenses, such as
credit reports, inspection costs, courier and copying
charges, and the like (estimated not to exceed $7,500).
(2).
In addition to the deposits, fees and expenses itemized above, the
Borrower shall also pay all costs and expenses for such normal closing items as title
insurance premiums and charges, recordation and filing fees, FHA fees, deposits and
mortgage insurance premiums, Borrower legal fees, survey costs and the like.
The following Exhibits are attached hereto, incorporated herein and made a part
hereof:
1.
Exhibit 1:
FHA Commitment
2.
Exhibit 2:
General Conditions to Lender’s Commitment
3.
Exhibit 3:
Special Conditions to Lender’s Commitment
4.
Exhibit 4:
Form of Rate Lock Letter
Revised 9.16.10
Name of Borrower
Date
Page 4 of 4
If this Lender’s Commitment is acceptable to you, please execute a duplicate copy
of this Commitment Letter in the space provided below, initial the first page of each
Exhibit attached hereto and return this Commitment Letter to the undersigned, along with
a Good Faith Deposit in the amount of $______. This Lender’s Commitment shall
expire and be of no further force and effect if it is not executed and returned to the Lender
along with the Good Faith Deposit by 3:00 p.m. on _______________.
The Borrower acknowledges that this Commitment Letter is a commitment from a
Lender to make a loan to a Borrower and describes the terms under which a debtorcreditor relationship will be established in this transaction. Nothing in this Commitment
Letter, creates or is intended to create a joint venture or any agency or fiduciary
relationship, duty or obligation between the parties. Borrower hereby agrees and
acknowledges that the commitments and services of RMC are being provided as an
independent contractor at arm’s length.
We appreciate the opportunity to participate with you in this financing and look
forward to a successful closing of the transaction as described by this Lender’s
Commitment.
Very truly yours,
Red Mortgage Capital, LLC
By:
__________________________________
Name, Title
ACCEPTANCE:
The undersigned hereby accepts the foregoing Lender’s Commitment and agrees
to (i) perform all of the Borrower obligations contained therein; (ii) be bound by all of the
terms, provision and conditions thereof; and (iii) cause the transactions that are described
therein to be consummated at the earliest possible date.
[Borrower Name]
By:
__________________________________
Name: __________________________________
Date: __________________________________
Revised 9.16.10
EXHIBIT 2
GENERAL CONDITIONS TO
LENDER’S COMMITMENT
FOR FHA INSURED FINANCINGS
These General Conditions are incorporated in and form an integral part of the Lender’s
Commitment to which they are attached. These General Conditions constitute conditions
precedent to the Lender’s obligations to make the Loan described in the Lender’s Commitment
(the “Lender’s Commitment”).
1.
FHA Commitment. The FHA Commitment and all amendments thereto, that
have been issued as of the date of the Lender’s Commitment, are attached to the Lender’s
Commitment as Exhibit 1. All obligations imposed on the Borrower and all conditions precedent
to FHA’s obligation to insure the Loan pursuant to the FHA Commitment are incorporated
herein and made a part hereof. Any and all Amendments to the FHA Commitment (issued or to
be issued) shall be incorporated into and made a part of this Commitment.
2.
HUD Mortgage Insurance. The Loan described in the Lender’s Commitment
shall be evidenced by a Mortgage or Deed of Trust Note (the “Note”) on a form prescribed by
the Secretary of Housing and Urban Development (“FHA” or “HUD”). It is a condition
precedent to the Lender’s obligation to make the Loan evidenced by the Note that the Note first
be endorsed for mortgage insurance by HUD (the “Endorsement”).
3.
HUD Requirements. The Borrower and the Project shall be and remain in full
compliance with all HUD requirements both at the time of Endorsement and for the full term of
the Loan. These HUD requirements include but are not limited to requirements set out in the (a)
National Housing Act, as amended from time to time (the “Act”); (b) the applicable HUD
Regulations that implement the Act; (c) the FHA Commitment; and (d) rules, instructions and
administrative requirements imposed on the Project and the Borrower by HUD.
4.
Borrower. The Borrower shall be a duly authorized, single purpose, single asset
entity organized and in good standing both in its organizational jurisdiction (the “Organizational
Jurisdiction”) and the jurisdiction in which the Project is located (the “Property Jurisdiction”).
5.
Loan Amount. The Loan amount set out in both the Lender’s Commitment and
the FHA Commitment is subject to adjustment at the time the final interest rate is established,
pursuant to the “Rate Lock” procedures described in the Lender’s Commitment.
6.
Term. The term of the Loan shall be the term described in the FHA Commitment.
7.
Amortization. The Loan shall commence amortization at the time set forth in the
FHA Commitment, which Loan shall fully amortize over the term of the Loan.
8.
Interest Rate. The interest rate on the Loan will be finally determined pursuant
to the Rate Lock procedure described in the Lender’s Commitment. Interest shall be calculated
Revised 2.9.12
on the daily outstanding principal balance of the Loan and shall be paid monthly, in arrears,
commencing on the first day following the date of Endorsement.
9.
Prepayment Restrictions and Rights; Late Payment Penalties. The Note shall
be subject to such prepayment restrictions as shall be contained in the Confirmation Letter and
prepayment rights as shall be required by HUD. All Note payments are due on the first (1st) day
of the month. A late payment penalty, in the amount of two percent (2%) of the delinquent
payment, becomes due on all payments received after the [tenth (10th)(Multifamily) / fifteenth
(15th) (LEAN)] day of the month.
10.
Collateral for Loan. The Loan shall be collateralized and secured by a first
mortgage lien on the land, improvements and fixtures that constitute the Project, as well as by a
first lien security interest in all Borrower and Project personal property, inclusive of funds, and
accounts receivable.
11.
Prohibition on Secondary Financing. The Borrower shall not have any
indebtedness other than the Loan. Accordingly, all secured or unsecured Borrower or Project
borrowings are strictly prohibited.
12.
GNMA Funding. The Lender reserves the right, at its election, to securitize and
fund the Loan by the issuance of GNMA mortgage backed securities.
13.
Loan Documents. The Loan will be documented and evidenced by such loan
documents as shall be required by FHA or the Lender and shall include, but not be limited to the
Note, a Mortgage or Deed of Trust, a Regulatory Agreement between the Borrower and FHA, a
Security Agreement, UCC Financing Statements, possible Escrow Agreements of various kinds,
a Lender’s Title Insurance Policy with certain required Endorsements, ALTA survey, property
and liability insurance policies, a flood insurance policy (if applicable), evidence of utility
availability and zoning compliance, along with a HUD promulgated form of Borrower’s
attorney’s opinion. A final list of required Loan Documents and exact title and survey
requirements will be provided to the Borrower by the Lender’s counsel. All Loan Documents
must be acceptable to HUD, the Lender and their respective legal counsel.
14.
Letters of Credit. In the event that one or more letters of credit are required by
FHA and/or the Lender, as will be set forth in the FHA Commitment and/or the Lender’s
Commitment, such Letters of Credit must be unconditional, irrevocable and issued on the exact
form promulgated by GNMA for use in transactions of this nature. The issuer of the Letter of
Credit is subject to the credit approval of the Lender.
15.
Insurance.
The Borrower shall provide the Lender with:
A.
Property and Liability Insurance. An “all perils” hazard insurance policy
which meets all Lender and FHA requirements. All policies must also contain endorsements
providing that (i) the policy cannot be cancelled without thirty (30) days’ prior written notice to
Revised 2.9.12
the Lender and (ii) insuring compliance with all co-insurance requirements. Any zoning nonconformance uses must be insured by a “law and ordinance” endorsement insuring against
demolition and increased cost of construction risks.
B.
Rent Loss. Rent loss or business interruption insurance covering not less
than twelve (12) months of total Project income.
C.
Lender and FHA.
Flood Insurance. As applicable, in form and content satisfactory to the
D.
Professional Liability Insurance. As applicable for health care facilities, in
form and content satisfactory to the Lender and FHA.
Blanket policies covering more than one property or operator shall be subject to
review and approval by the Lender, which approval may be granted or withheld in the sole
determination of the Lender.
16.
Closing and Endorsement.
A.
Upon satisfaction of each and every condition precedent contained in the
FHA Commitment and the Lender’s Commitment, the Lender shall schedule a “Closing” with
FHA to be held at the FHA Area Office on a mutually agreeable date (the “Closing Date”). The
Closing Date shall be not later than (a) the fifth (5th) business day prior to the expiration of the
FHA Commitment, as that date may be extended by FHA; (b) the date the Lender determines to
be the date that Closing must be effected in order to meet the loan delivery date or otherwise
satisfy the time constraints described in the Confirmation Letter (the earliest of such date being
the “Closing Deadline”). Depending on the terms of the Confirmation Letter, it may be possible
to extend the Closing Deadline by payment of a monthly extension fee, the amount and other
terms of which will be set forth in the Confirmation Letter.
B.
In the event that the Closing does not occur by the Closing Deadline (as
that Closing Deadline may be extended pursuant to subparagraph A above), the Borrower shall
have breached its mandatory closing obligation and, accordingly, shall forfeit all moneys
previously paid to the Lender, including, but not limited to, the Good Faith Deposit (which
forfeiture shall NOT constitute Liquidated Damages) and the Borrower shall be liable to the
Lender for such other and additional damages as the Lender shall have suffered or incurred as a
result of this breach by the Borrower of its mandatory closing obligation.
C.
Lender shall be represented by the Law Firm of ____________________,
which firm shall conduct the Closing, prepare and review the Loan Documents and represent the
Lender in all matters relating to the Loan. You will be contacted directly by the attorney
handling this transaction.
D.
The following are additional and specific conditions precedent to Closing:
1. The FHA Commitment must be in full force and effect;
Revised 2.9.12
2. The Borrower and all of its principals must be in full compliance
with all FHA requirements;
3. The Confirmation Letter must have been issued and be in full force
and effect; and
4. All amounts then due the Lender hereunder must have been paid.
17.
Financial Information. The Borrower shall provide the Lender, during the entire
term of the Loan, with annual audited financial statements of the Project, prepared by an
independent CPA in accordance with FHA requirements, which statements must be submitted in
a timely manner at the time set forth in the Loan Documents, time being of the essence. Upon
request, the Borrower shall also provide the Lender with copies of interim financial statements,
operating reports, rent rolls and other financial information routinely prepared by or for the
benefit of the Borrower in the ordinary course of its business. The Borrower shall maintain its
books and records, all of which shall be subject to Lender inspection upon reasonable notice, in
full compliance with FHA requirements.
18.
Project Inspections. The Lender shall cause site inspections of the Project to be
performed in accordance with FHA regulations and requirements. The results of these
inspections may be provided to FHA and to other parties with a financial interest in the Loan.
The Borrower shall cooperate and assist the Lender in these inspections. The Lender shall also
perform inspections related to reconstruction and restoration following condemnation or a
casualty. The Borrower shall reimburse the Lender for its reasonable corporate and third-party
expenses related to these latter inspections.
19.
FHA Debentures. The Borrower agrees that the Lender has the option of paying
FHA mortgage insurance premiums with FHA Debentures the Lender may own or acquire and
the Borrower shall assert no claim to any benefit the Lender may achieve by the use of such
Debentures.
20.
Borrower Representations and Warranties.
warrants to the Lender that:
The Borrower represents and
A.
The Borrower is duly organized, existing and in good standing in both the
Organizational Jurisdiction and the Property Jurisdiction.
B.
The Borrower has full authority to execute and deliver the Lender’s
Commitment and to perform all of the obligations contained therein and in the FHA
Commitment.
C.
The Lender’s Commitment evidences the Borrower’s valid, binding and
enforceable agreement.
Revised 2.9.12
D.
Neither the execution of the Lender’s Commitment, nor the consummation
of the transactions described herein and in the FHA Commitment violate the Borrower’s
organizational documents and authorizations or any other contract, agreement, covenant
judgment, order, law, rule or regulation by which it may be bound.
21.
Brokerage Indemnification. Unless otherwise stated in the Commitment Letter
to which these General Conditions are attached, the Borrower and Lender represent to each other
that neither have engaged nor have any financial liability for the services of a broker or third
party who was instrumental in the issuance of the Lender’s Commitment or the FHA
Commitment and each holds the other harmless from and against any claims, demands and
liabilities for any brokerage or similar fees which arise under an asserted contractual
arrangement with the party against whom this indemnification is sought.
22.
Use of Funds. Borrower agrees that, subject to the Lender’s obligation to hold
and apply funds in accordance with FHA requirements and the Loan Documents, once it makes
payment to the Lender or its agent (or the Lender receives payment on behalf of the Borrower)
for interest, principal, escrows, deposits, late fees, prepayment penalties or otherwise in
connection with the Loan, the Borrower thereafter has no right, title or interest whatsoever
(either directly or indirectly) to receive any benefits which may accrue to the Lender or any other
party as a result of its having received, exchanged, or otherwise sold such funds, securities or
other valuables in connection with the Insured Loan.
23.
Additional Services. The Lender’s scope of services are strictly limited to those
set forth in the Lender’s Commitment and the compensation the Lender receives hereunder is
solely to compensate the Lender for this limited scope of services. Any additional services the
Lender is called upon to provide, e.g., processing a mortgage loan increase, participation in the
resolution of post-Closing problems with HUD or other parties to the transaction, shall be the
subject of a separate retainer agreement and separate and additional compensation.
24.
Assignment and Waiver. This Lender’s Commitment when executed by the
parties hereto, and the Confirmation Letter, when issued by the Lender, contains the complete
and entire terms, conditions and understandings of the parties hereto of the Lender's agreement to
provide the Loan as indicated, and no changes will be recognized as valid unless they are
reduced to writing and similarly executed. No specific waiver of any of the terms hereof shall be
considered as a general waiver. This Commitment may not assigned by the Borrower without
the written consent of the Lender. The Lender may assign this Commitment to an assignee that
is financially capable of performing the Lender's obligations hereunder in accordance with the
express terms hereof.
25.
Interpretation.
A.
In this Commitment, unless the context otherwise requires, any certificate,
letter or opinion required to be given pursuant to this Commitment shall mean a signed
document attesting to or acknowledging the circumstances, representations, opinions of law or
other matters therein stated or set forth.
Revised 2.9.12
B.
Nothing in this Commitment expressed or implied is intended or shall be
construed to confer upon, or give to, any person, other than the Lender and the Borrower any
right, remedy or claim under or by any reason of this Commitment or any covenants. Promises
and agreements herein contained by and on behalf of the Lender shall be for the sole and
exclusive benefit of the Borrower.
C.
If any one or more of the covenants or agreements provided herein on the
part of the Borrower to be performed should be contrary to law, then such covenant or
covenants or agreement or agreements shall be deemed separable from the remaining
covenants and agreements hereof and shall in no way affect the validity of the other provisions
of this Commitment.
D.
The Borrower agrees to comply with all applicable FHA Requirements in
connection with the Project.
26.
Applicable Law. By its acceptance of the Lender’s Commitment, the Borrower
agrees that (a) it shall be deemed to be a contract entered into pursuant to the laws of the State of
New York; (b) any action brought hereunder shall only be brought in the federal or local courts
located within Dallas County, Texas; and (c) the rights and obligations of the parties shall be
determined in accordance with applicable federal law and, to the extent that State law applies,
the law of the State of New York pursuant to Section 5-1401 of the New York General
Obligations Law without regard to principles of conflicts of laws.
27.
Prior Agreement.
This Lender’s Commitment supersedes any previous or
contemporaneous, written or oral, agreement or understanding between the Borrower and the
Lender relative to the transactions that are the subject of the Lender’s Commitment and the FHA
Commitment.
28.
Severability. If any one or more of the provisions of the Lender’s Commitment
shall be contrary to law or otherwise unenforceable, such provision(s) shall be deemed severed
herefrom and shall not affect the validity and enforceability of the balance of the Lender’s
Commitment.
29.
No Material Adverse Change; Lender’s Right to Terminate. The Lender may
terminate the Lender’s Commitment at any time, in its sole discretion, without liability or
obligation to the Borrower of any kind, upon a good faith determination by the Lender that,
subsequent to the date of the Lender’s Commitment, (i) it obtains information that makes
previous information given to it by or on behalf of the Borrower, its principals or the Project
materially inaccurate or misleading; (ii) there has been a material adverse change in the financial
condition of the Borrower or its principals; (iii) there has been a material adverse change in real
estate market conditions affecting the Project or in the estimated value of the Project; (iv) the
Lender obtains information that would have a material and adverse affect on the amount of the
Loan or the conditions under which the FHA Commitment was underwritten or issued; and/or (v)
there have been changes or modifications in the FHA, GNMA or other statutory, regulatory or
administrative requirements which result in additional Lender costs and expenses or materially
Revised 2.9.12
and adversely affects the Lender’s ability or willingness to make the Loan under the terms of the
Lender’s Commitment and/or the FHA Commitment.
30.
Right of Set-Off. The Lender shall have the right to set-off any amounts that
may be due and owing to the Lender by the Borrower (and any Guarantor(s)) hereunder against
(i) interest earned on deposits or investments made by the Lender on behalf of the Borrower; (ii)
any deposit held by the Lender in connection with a requirement of FHA, but only after either (x)
said deposit is no longer required under the FHA closing document to which it pertains or (y)
said deposit has been approved by FHA for return to the Borrower or other party providing the
same; and (iii) any refund or reimbursement of any other monies to which the Borrower or any
Guarantor may be entitled.
31.
Inconsistencies. In the event of any inconsistencies between the terms and
conditions of this Lender’s Commitment (inclusive of all Exhibits) and the terms and conditions
of the FHA Commitment or of the Loan Documents, the terms and conditions of the FHA
Commitment or the Loan Documents shall supersede the terms and conditions of this
Commitment. Notwithstanding anything in this Commitment to the contrary, any requirements
necessary to conform to the terms of the FHA Commitment or to secure the issuance of the
Certificates, though not specifically mentioned herein, shall be deemed a requirement hereunder.
32.
Survival. All of the terms and provisions set forth in this Commitment shall
survive Final Endorsement and shall continue in full force and effect until the Lender shall have
received payment in full of the Loan, and all interest thereon, all fees due and payable from the
Borrower as set forth in this Commitment, and all other sums provided for in the Loan
Documents.
33.
Borrower’s Obligation to Close. The Lender is extending this Commitment to
the Borrower in reliance upon the Borrower’s representation that the Borrower will effectuate the
Closing of the Loan. Should the Borrower fail to effectuate the Closing of the Loan, or close a
mortgage loan for the Project with any other lender, then the Borrower and the Guarantor(s) shall
be fully liable for all actual damages sustained by the Lender and the Investor in the event of
such failure.
Revised 2.9.12
Legacy at Crown Meadows 223(f) Loan Comparison Schedule
Greystone
Red Capital
Sources
Loan amount
Other Sources/Bond Funds
$
11,215,641
11,215,641
$
11,198,795
11,198,795
Uses
Outstanding Debt
Prepayment penalty
$
10,285,000
205,700
$
10,285,000
205,700
Interest
Deposits to Reserves
Estimate of Repair Cost
Estimate of Repair Escrow
Finance Fee
159,440
192,000
38,400
7,680
84,117
159,440
192,000
38,400
7,680
83,991
Legal (Lender/Borrower)
HUD Inspection Fee
HUD Exam Fee
Initial MIP
Title Policy/Recording/Survey
3rd Party Cost
25,000
1,500
33,647
112,156
55,500
15,500
35,000
1,500
33,596
111,988
27,500
17,000
$
11,215,641
Cash Back / (Cash to Close)
11,198,795
-
Interest Rate
-
2.75%
Monthly P&I
Term
Current -US Bank
Current Rate (Series A) Weighted
Current Rate (Series B)
Credit Enhancement Fee
Monthly P&I (Average)
Remaining Term
$
2.75%
60,491
60,397
264
264
5.05%
8.00%
0.89%
$
Monthly Savings
Avg Annual Cash Flow Savings
Total Payments - New
Total payment -Old
5.05%
8.00%
0.89%
90,515
174
$
90,515
174
30,024
360,290
30,118
361,418
15,706,080
15,749,646
15,681,864
15,749,646
Total Savings
$
43,566
$
67,782
Net Present Value of Cash Flows
$
2,077,393
$
2,091,941
Total Savings
Optimal *based on NPV analysis
$
$
67,782
2,091,941
Loan Comparison Schedule
FHA Section 223(f) Mortgage Insurance Program
5-Mar-13
PRELIMINARY LOAN ANALYSIS
EXECUTIVE SUMMARY
This analysis is very preliminary in nature and is based on information supplied by the Borrower. The rates and costs are estimates based on current
market conditions and are subject to change without notice. While we believe the analysis below to be reasonable and accurate, no assurances
can be given that the FHA insurance commitment will be issued based on the following information or that actual costs will not differ from below.
Property Location
Number of Units
Year Built
Transaction Type
Project Type
San Antonio, TX
192
2004
Refinance
Market Rate
LOAN STRUCTURE
Term
Amortization (yrs)
Mortgage Rate
MIP
Amortization
Debt Service Factor
Annual Debt Service
Monthly Payment
DSCR X
LTV
Borrower
Borrower Contact
Telephone
Mobile
Arthur Mikeska
210.477.6104
-
UNDERWRITING PARAMETERS
Gross Rental Income
Ancillary Income (Parking, Laundry, if any)
Gross Potential Income
Occupancy
Effective Gross Income (excl. commercial)
Net Commercial Income (max 90% occupancy)
Total Effective Gross Income
Estimated Annual Operating Expenses
Annual Deposit to Replacement Reserve
Estimated Annual Expenses
5,307
52.86%
Estimated Underwritten Net Income
22
22
2.750%
0.600%
3.313%
6.663%
749,636
62,470
1.21
81.8%
Estimated Appraised Net Income
Capitalization Rate
Value
MAXIMUM MORTGAGE COMPUTATION
83.3% of Value
1.200 minimum Debt Service Coverage
Greater of 100.0% of Transaction Costs
80.0% of Value
Maximum Statutory Limits
Borrower's Loan Request
MAXIMUM MORTGAGE
1,881,595
191,283
2,072,878
93.0%
1,927,777
0
1,927,777
942,191
76,800
1,018,991
908,786
927,986
6.75%
13,750,000
11,453,700
11,360,900
11,250,200
11,000,000
11,250,200
18,912,700
N/A
11,250,200
SOURCES & USES OF FUNDS
Estimated Sources
RMC Loan Amount
Other Sources - replacement reserve
Total Sources
11,250,200
58,595 per unit. Estimate
95,291 Estimate (as of January 2013)
11,345,491
Estimated Uses
Existing Debt Balance
Prepayment Penalty (if applicable)
Initial Deposit to Reserve Fund
Estimate of Repair Cost
Estimate of Repair Escrow (20%)
FHA Inspection Fee
Financing Fee
GNMA Issuance Costs/Lender Legal
Borrower Legal & Organizational
Title & Recording
FHA Application Fee
First Year MIP
Required Third Party Reports
Survey
Total Uses
10,594,872
208,591
192,000
38,400
7,680
1,500
84,377
20,000
15,000
20,000
33,751
112,502
17,000
7,500
11,353,172
Net Proceeds to Borrower
Cash to Close
Per Owner (as of June 2013)
Per Owner (as of June 2013)
$1,000 per unit. Estimate
$200 per unit. Estimate
See comments below
$30 per unit
0.75%
Estimated
Estimated
$3 per 1,000
1%
Estimated (Appraisal, PCNA, Phase I)
Estimated
N/A
7,681
COMMENTS
1. HUD will require an escrow of 120% of the estimated repair cost of which one sixth (20%) may be in the form of a letter of credit.
2. A good faith deposit of 0.5% of the loan amount is required to be posted with the lender prior to rate lock once FHA issues it's commitment and
all other closing requirements such as title, survey, etc., can be met.
3. Transaction costs do not include amounts that may need to be escrowed for taxes and insurance.
4. Rental income based on 02.05.2013 rent roll. Ancillary income assumed to be consistent with FYE 06.30.2012, adjusted for vacancy.
5. Vacancy assumed to be 7.00%.
6. Expenses assumed to be consistent with FYE 06.30.2012 and 4.00% management fee; however, assumed real estate taxes of $1,000 per unit,
subject to due diligence.
7. Annual replacement reserve assumed to be $400 per unit with an initial deposit of $1,000 per unit. Critical and non-critical repairs
assumed to be $200 per unit. Final underwritten amounts to be based upon a third party Project Capital Needs Assessment.
8. Assumed a capitalization rate of 6.75% for estimation of value and $300 per unit replacement reserve. Final underwritten value and NOI
will be based on a third party appraisal.
9. Net Proceeds to Borrower/Cash to Close does not reflect any trustee held balances that may be available, subject to due diligence.
10. Assumed 22 year term/amortization; however, a 20 year term/amortization would result in approximately $600,000 cash to close,
subject to due diligence.
April 4, 2013
RESOLUTION 5341, AUTHORIZING THE PRESIDENT AND CEO TO SIGN THE HUD 1044
FORMS, ACCEPTING THE CHOICE NEIGHBORHOOD IMPLEMENTATION GRANT
AGREEME.NT.
~A .cfl
~rmick,
Development and Neighborhood
REQUESTED ACTION:
Consideration and approval regarding Resolution 5341, authorizing the President and CEO to
sign HUD 1044 forms, accepting the Choice Neighborhoods Implementation Grant Agreement.
PURPOSE:
To execute the Choice Neighborhoods Implementation Grant Agreement with the U.S.
Department of Housing and Urban Development.
FINANCIAL IMPACT:
The Choice Neighborhoods Implementation grant for the revitalization of Wheatley Courts and
the neighboring area totals $29,750,000.00.
SUMMARY:
The U.S. Department of Housing and Urban Development (HUD) has issued the formal FY2012
Choice Neighborhoods Implementation Grant Agreement in the amount of $29,750,000.00. The
grant agreement memorializes the agreements made between SAHA and HUD, and establishes
the official award date as December 13, 2012 and an expenditure deadline date as September
30, 2019.
HUD requests the agreement include:
. Board Resolutions 5246 and 5341, authorizing the Lead Grantee's Executive
Director/Executive Officer to sign all three HUD-1044s (Assistance Award/Amendment).
. The Executive Director/Executive Officer of the Lead Grantee signs and dates each of
the three HUD-1044 forms, which then serve as the coversheet of the Grant Agreement.
. The Executive Director/Executive Officer for the Lead Grantee must sign the signature
page in the Grant Agreement document.
. Return to HUD of the signed Grant Agreement, including the 1044s, a copy of the Board
Resolution and a copy of the Lead Grantee's code(s) of conduct by no later than Friday,
April 12, 2013.
In February 2012, the Board approved Resolution 5246, approving the selection of McCormack
Baron Salazar, Inc. (MBS) as developer of Wheatley Courts and authorizing: the negotiation of
a development agreement; the submission of applications for financing; the creation of any
necessary legal entities; the drafting of contracts for conveyance of the land; the retention of
legal counsel, and other matters in connection therewith. Approval of Resolution 5341 gives the
President and CEO specific approval to sign the Choice grant agreement with HUD.
Agenda Item No. 14
April 4, 2013
Once the grant agreement, copy of the Board Resolutions, and copy of the code(s) of conduct
are received by HUD, the Assistant Secretary for Public and Indian Housing will sign and date
the final signature block on the signature page of the Grant Agreement, which will be the
effective date of the Grant Agreement. The original will be kept by HUD and an executed copy
will be returned to SAHA to keep in our records and administer accordingly. Once the grant
agreement is executed, SAHA may request HUD to approve the release of funds.
Activitv Update
On March 11-12, 2013, a coordinated Choice/Promise site visit of federal agencies occurred on
the campus of St. Philips Community College. Present were staff from the U.S. Departments of
Housing and Urban Development (HUD), Education (DOE), Justice (DOJ) and Health and
Human Services (HHS). Also present were key partners and stakeholders.
The agenda consisted of an overview of the Choice Neighborhood Transformation Plan, a tour
of the Choice and Promise Neighborhood footprints, and presentations on the three core
components of the Choice Transformation Plan: People, Housing and Neighborhood by Urban
Strategies, McCormack Baron Salazar (MBS) and SAHA staff.
Work continues to roll out according to the six-month timeline. Milestones involve coordination
of case management services, submittal of the final Transformation Plan and Close-Out of the
Planning Grant, Execution of agreements with MBS and Urban Strategies, and the development
of MOUs with partner agencies.
ATTACHMENTS:
Resolution 5341
The undersigned officer of the Housing Authority of the City of San Antonio,
Texas, a Texas housing authority created pursuant to the laws of the State of Texas
(“SAHA”), hereby certifies as follows:
1.
In accordance with Chapter 551, Texas Government Code, as amended
(the “Open Meetings Act”), and the bylaws of SAHA, the Board of Commissioners of
SAHA (the “Board”) held a meeting on April 4, 2013, (the “Meeting”) of the duly
constituted officers and members of the Board, at which a duly constituted quorum was
present. Whereupon among other business transacted at the Meeting, a written
RESOLUTION 5341 AUTHORIZING THE ACCEPTANCE OF A HUD
FY2012 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANT IN
THE AMOUNT OF $29,750.000; THE EXECUTION OF FORMS HUD1044; THE EXECUTION OF THE HUD FY2012 CHOICE
NEIGHBORHOODS IMPLEMENTATION GRANT AGREEMENT; THE
EXECUTION AND SUBMISSION TO HUD OF ANY OTHER
DOCUMENTS NECESSARY TO ACCEPT SUCH GRANT; AND OTHER
(the “Resolution”) was duly introduced for the consideration of the Board and
discussed. It was then duly moved and seconded that the Resolution be adopted; and,
after due discussion, said motion, carrying with it the adoption of the Resolution,
prevailed and carried by a majority vote of the Board.
2.
A true, full, and correct copy of the Resolution adopted at the Meeting is
attached to and follows this Certificate; the Resolution has been duly recorded in the
Board’s minutes of the Meeting; each of the officers and members of the Board was
duly and sufficiently notified officially and personally, in advance, of the time, place, and
purpose of the Meeting; and the Meeting was held and conducted in accordance with
the Open Meetings Act and the Bylaws of SAHA.
President and CEO
RESOLUTION 5341
RESOLUTION 5341 AUTHORIZING THE ACCEPTANCE OF A HUD
FY2012 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANT IN
THE AMOUNT OF $29,750.000; THE EXECUTION OF FORMS HUD1044; THE EXECUTION OF THE HUD FY2012 CHOICE
NEIGHBORHOODS IMPLEMENTATION GRANT AGREEMENT; THE
EXECUTION AND SUBMISSION TO HUD OF ANY OTHER
DOCUMENTS NECESSARY TO ACCEPT SUCH GRANT; AND OTHER
WHEREAS, the Housing Authority of the City of San Antonio, Texas (“SAHA”)
submitted an application to the U.S. Department of Housing and Urban Development
(“HUD”) for a FY2012 Choice Neighborhoods Implementation Grant (“Choice
Neighborhoods Grant”) in order to execute a transformation plan for the east side of
San Antonio in the area of Wheatley Courts; and
WHEREAS, HUD has approved SAHA’s application and has submitted a FY2012
Choice Neighborhoods Implementation Grant Agreement (“Grant Agreement”) in the
amount of $29,750,000 to SAHA for acceptance and execution; and
WHEREAS, SAHA staff requests that the Board of Commissioners of SAHA (the
“Board”) approve the acceptance and execution of the Grant Agreement and any other
documents necessary to accept the Choice Neighborhoods Grant; and
WHEREAS, the Board has reviewed the foregoing and determined that the
action authorized herein is in furtherance of the public purposes of SAHA, and in the
public interest and to the benefit of the citizens and residents of San Antonio;
NOW, BE IT THEREFORE RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE HOUSING AUTHORITY OF THE CITY OF SAN ANTONIO, TEXAS, THAT:
Section 1.
Acceptance of the Choice Neighborhoods Grant is hereby
authorized and approved, and the President and CEO, any Vice President, the
Secretary and/or Treasurer, or any Assistant Secretary and/or Treasurer, or any of
them, of SAHA, as appropriate, on behalf of SAHA, are hereby authorized to execute
and submit to HUD the Grant Agreement and Forms HUD-1044, and other documents
(the “Documents”) required to accept the Choice Neighborhoods Grant, including but
not limited to all Post Application Submissions, as defined in the Grant Agreement. The
President and CEO, any Vice President, the Secretary and/or Treasurer, or any
Assistant Secretary and/or Treasurer, or any of them, are authorized to approve such
changes in, or additions to, the terms of any of the Documents, including amendments,
as such officers shall deem necessary or appropriate upon the advice of counsel to
SAHA, and approval of the terms of any of the Documents by such officers and this
Board shall be conclusively evidenced by the execution and delivery of such
Documents.
Section 2.
The officers of this Board, or any of them, are authorized to take
any and all action necessary to carry out and consummate the transactions described in
or contemplated by the documents approved hereby or otherwise to give effect to the
actions authorized hereby and the intent hereof.
Section 3.
If any section, paragraph, clause, or provisions of this Resolution
shall 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 4.
The recitals contained in the preamble hereof are hereby found to
be true, and such recitals are hereby made a part of this Resolution for all purposes and
are adopted as a part of the judgment and findings of the Board.
Section 5.
All resolutions, or parts thereof, which are in conflict or inconsistent
with any provision of this Resolution are hereby repealed to the extent of such conflict,
and the provisions of this Resolution shall be and remain controlling as to the matters
resolved herein.
Section 6.
This Resolution shall be construed and enforced in accordance with
the laws of the State of Texas and the United States of America.
Section 7.
passage.
This Resolution shall be in force and effect from and after its
*
*
*
April 4, 2013
RESOLUTION 5340, AUTHORIZING APPROVAL OF AN INTERIM AGREEMENT WITH
MCCORMACK BARRON SALAZAR (MBS) FOR PREDEVELOPMENT AND RELATED WORK TO
IMPLEMaJT THE WHEATLEY CHOICE NEIGHBORHOOPS TRANSFORMATION PLAN.
-
Lou~
Castro Ramirez
President and CEO
dCQ
athy McCormick
Development Services and Neighborhood
REQUESTED ACTION:
Consideration and appropriate action regarding Resolution 5340, authorizing approval of an interim
agreement with McCormack Baron Salazar (MBS) for predevelopment and related work to implement the
Wheatley Choice Neighborhoods Transformation Plan.
PURPOSE:
The interim agreement will allow SAHA and MBS to begin the planning and pre-development work
needed to meet all required deadlines under the Choice agreement.
SUMMARY:
In February 2012, the Board approved Resolution 5246, approving the selection of McCormack Baron
Salazar, Inc. (MBS) as developer of Wheatley Courts and authorizing: the negotiation of a development
agreement; the submission of applications for financing; the creation of any necessary legal entities; the
drafting of contracts for conveyance of the land; the retention of legal counsel, and other matters in
connection therewith.
MBS will lead the Housing portion of the Wheatley Transformation Plan, which is focused on the
redevelopment of Wheatley Courts and adjacent properties into mixed-income, mixed-finance,
multifamily rental housing. Activities related to the redevelopment of these properties need to be
underway by June 2013.
Staff has finalized the preliminary business terms for this transaction, which will be memorialized in a
Master Development Agreement (MDA). This agreement is being prepared by Reno & Cavanaugh,
which is representingSAHAin this transaction.
.
.
Additionaldetailsof the interimagreementwill be presentedat the April 4, 2013 Boardof Commissioners
meeting, and the final MDA agreement will be presented at the June 2013 meeting of the Operations and
Human Resources Committee and to the Board at the July 2013 meeting.
FINANCIAL IMPACT:
The cost of the interim agreement is presently being finalized, and updated information with be provided
at the April 4, 2013 Board of Commissioners meeting. Funds for this activity will be drawn from the
Choice Neighborhoods Implementation Grant and will be credited against the respective service
agreements and MDA that will be executed with MBS.
ATTACHMENTS:
Resolution 5340
Agenda Item No. 15
April 4, 2013
Resolution 5340
RESOLUTION 5340, AUTHORIZING APPROVAL OF AN INTERIM AGREEMENT WITH
MCCORMACK BARRON SALAZAR (MBS) FOR PREDEVELOPMENT AND RELATED
WORK TO IMPLEMENT THE WHEATLEY CHOICE NEIGHBORHOODS TRANSFORMATION
PLAN.
WHEREAS, the San Antonio Housing Authority received funding for the CHOICE
Transformation Plan; and,
WHEREAS, McCormack Baron Salazar was selected as the development partner to lead the
redevelopment of Wheatley Courts into mixed-finance, mixed-income residential properties as
part of this plan; and,
WHEREAS, predevelopment activities are required for a timely implementation of the plan; and,
WHEREAS, SAHA intends to execute a Master Development Agreement with McCormack
Barron Salazar to address all aspects of the development plan and has agreement on the broad
terms of the business plan; and,
WHEREAS, Redevelopment of multifamily housing is a core component of the Wheatley Courts
Transformation plan and requires significant predevelopment activities in advance of
construction.
Approve Resolution 5340, authorizing the President and CEO to execute an interim agreement
with MBS to begin the pre-development activities associated with the revitalization of the
Wheatley Courts area.
Passed and approved this 4th day of April 2013.
_____________________________
RAMIRO CAVAZOS
______________________________
President and CEO
PRESIDENT’S REPORT
April 4, 2013
Third and Final Phase of redevelopment of San Juan Homes
 A report on the San Juan project was presented to the City Council Quality of Life
Committee on Tuesday, March 19. The report included a request for approval of a bond
allocation, which passed unanimously and is expected to be on the Council’s consent
agenda for April 4
 Staff is expecting HUD Disposition Approval very soon, with a tentative pre-closing
transaction date of April 2, 2013.
 Relocation will begin thereafter, with a relocation deadline of July 15, 2013.
 Abatement is expected to begin at the site in June, with demolition to begin in July 2013.
 Construction is expected to begin in August 2013.
Award for SAHA logo
Creative Civilization has informed staff that the SAHA
logo, designed by the ad agency and unveiled by SAHA
in October 2012, was awarded a GOLD ADDY award by
the San Antonio Advertising Federation at 2013 ADDY
Award event.
Texas NAHRO conference in San Antonio
 The Texas Chapter of the National Association of Housing and Redevelopment Officials
(NAHRO) will host their 37th Annual Conference & Trade Show April 28- May 1, 2013, at the
Hilton San Antonio Airport, 611 NW Loop 410.
 SAHA staff will lead approximately 10 break-out sessions, and will invite various partners to
join on the panels. A bus tour of SAHA communities is also on the agenda.
 The local HUD office will also be leading approximately 10 break-out sessions.
 Commissioners interested in attending can contact Marissa Perez.
PHADA national conference in San Antonio
 The Public Housing Authorities Directors Association 2013 Annual Convention and
Exhibition is scheduled for May 19-22, 2013, at the Grand Hyatt San Antonio.
 The event will provide the information and tools housing authorities need to run their
agencies in busy and challenging times.
 A bus tour of SAHA communities is also on the agenda.
 SAHA staff is working with PHADA to assist as needed.
Orchard planting
 SAHA has partnered with The Fruit Tree Planting Foundation and KPMG for an orchardplanting event.
 The Orchard Planting day is scheduled for Saturday, May 4, 2013, at 10:00 a.m., at
Springview Townhomes located at 722 S. Rio Grande.
NAHRO Legislative visits
 The NAHRO Legislative Conference
took place in Washington, DC, on
March 17-20, 2013.
 SAHA
representatives
met
with
Congressmen Castro, Doggett, Gallego
and Smith, and with the staff of
Congressman Cuellar and Senators
Cruz and Cornyn.
 A meeting was also held with Assistant Secretary Sandra Henriquez and her staff.
 The discussions featured updates on SAHA’s strategic plan, construction activities at San
Juan, Sutton and Victoria Commons, as well as the Wheatley Choice Neighborhoods.
 There were also a number of briefings regarding the sequester, continuing resolution, and
the funding impact to the industry.
Procurement Update
See attached report
Calendar
See attached
.
PROCUREMENT ACTIVITY REPORT MARCH 26, 2013
Solicitations currently being advertised
Bidders
Conference
Closes
N/A
3/26/2013
2/19/2013
04/1/013
Utility Allowance Calculations for Public Housing
N/A
4/2/2013
RFQ
Residential Real Estate Broker Services
N/A
4/4/2013
Public Housing
RFQ
Automatic doors at Marie McGuire
N/A
4/5/2013
Public Housing
RFQ
Replace Retaining Walls at Alazan
N/A
4/5/2013
Public Housing
RFQ
Removal of Gas Meter Cages
N/A
4/9/2013
SAHA Department
Type
Legal
RFQ
Document Destruction Services
DSNR
RFP
Development Services With or Without Local
Unit-Based Subsidy Program or Capital Funds
Public Housing
RFQ
DSNR
Solicitations Under Evaluation
SAHA Department
Type
Solicitation Name
Solicitation Name
Status
Property Management
RFP
Tree Trimming Services
4/20/2012
Property Management
IFB
Plumbing Maintenance Services
8/28/2012
Property Management
RFP
9/17/2012
Finance & Accounting
RFQ
Instructor Led Basic Financial Training
7/13/2012
Property Management
RFP
Landscaping & Ground Maintenance
Services for Public Housing
7/18/2012
DSNR
RFQ
Real Estate Appraisal Services
9/25/2012
CDI
RFQ
Fund Raising Services
8/23/2012
HCV
RFP
Case Management Services
1/16/2013
HCV
RFQ
Permanent Supportive Housing
2/26/2013
Property Management
RFQ
Gas Line Repair at Highview
3/6/2013
Property Management
RFP
Unit Make Ready Public Housing
9/5/2012
Property Management
RFP
Unit Make Ready Services Contract
Housekeeping for Non Profit Properties
12/3/2012
Property Management
RFP
Unit Make Ready Services Contract
Painting for Non-Profit Properties
12/4/2012
Property Management
RFP
Roof Repair & Replacement at
HB Gonzales Apartments
12/20/2012
Risk Management
RFQ
Recycle Bins for All Properties
1/16/2013
Corporate Relations
RFQ
Strategic Plan Metrics and Dashboard
1/28/2013
Executive
RFP
DSNR
RFQ
Management Advisory Planning &
Training Consulting Services
Architectural & Engineering Services
General Architectural & Engineering Services
2/21/2013
DSNR
RFP
Roof Repair & Replacement Sun Park Lane
2/21/2013
DSNR
RFQ
Construction Services Technical Assistance
2/26/2013
DSNR
IFB
Sale of Danny Kaye Property
3/15/2013
RFQ
Existing, Newly constructed, Tax Credit Property With
or Without Local Unit-Based Subsidy Program or
Capital Funds
3/20/2013
DSNR
Pending Board Approval
Executive Review
Director Recommendation
Procurement
Evaluation
Due Diligence
Negotiation
Routing
Review
2/5/2013
No Bids Received
Solicitations under $50,000 awarded
SAHA Department
Type
Solicitation Name
Installation of Security Cameras
Property Management
RFP
Cancelled Solicitations
Department
Type
Property Management
RFP
Bulk Item Collection Services
DSNR
RFP
Residential Real Estate Broker Services
Legal
RFQ
Legal Services for Real Estate
Property Management
RFP
Consultant to Establish an Asset Management
Function
DSNR
RFP
Pest Control Services for Non Profit Properties
Future Solicitations
SAHA Department
Property Management
Amount
pp
Security
34,364.22
Name
Solicitation Name
Status
Bad Debt Collection Services
Scope of work being developed
Property Management Software
Repair Swimming Pools & Facilities
Scope of work being reviewed by end-user
Human Resources
Alcohol & Drug Testing
DSNR
Pest Control Non Profits
Legal Services
Legal Services Real Estate
SAHA Board of Commissioners
Events Calendar
April 2013-May 2013
Meeting
La Prensa 2013 Diamond Awards
Resident Services
Committee Meeting
Operations and Human
Resources Committee meeting
Finance Committee meeting
Time(s)/Day(s)/Date(s)
6:00 pm Social
7:00 pm Keynote Speaker
8:00 pm Program & Awards
Thursday, April 11, 2013
TBD
1:00 pm
3:00 pm
Location
OMNI Hotel
9821 Colonnade Blvd
SA, Tx
TBD
SAHA Board Room
SAHA Board Room
SAHA offices closed for the
Battle of Flowers Holiday
Friday, April 26, 2013
All SAHA properties
Regular Board meeting
1:00 pm
Thursday, May 2, 2013
SAHA Board Room
AVANCE
Mother of the Year Luncheon
11:30 am
Friday, May 10, 2013
Valero Energy Corporation,
One Valero Way
SA, Tx
Operations and Human
Resources Committee meeting
1:00 pm
3:00 pm
6:00 pm Silent Auction
7:00 pm Program
10:30 am
Tuesday, 21, 2013
Finance Committee meeting
MAUC 2013 Annual Lifetime
Achievement & Scholarship
Awards Gala
Resident Services
Committee meeting
SAHA offices closed for the
Memorial Day Holiday
Monday, May 27, 2013
SAHA Board Room
SAHA Board Room
OMNI Hotel at the Colonnade
9821 Colonnade Blvd
SA, Tx 78230
TBD
All SAHA properties

April 4, 2013 - San Antonio Housing Authority

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