HOUSING AUTHORITY OF THE CITY OF AUSTIN

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS Chairperson - Carl S. Richie, Jr. Charles Bailey Tyra Duncan-Hall Isaac Robinson Edwina Carrington Michael G. Gerber, President & CEO BOARD OF COMMISSIONERS Regular Meeting Thursday, September 15, 2016 at 12:00 noon HACA Central Office 1124 S. IH 35 Austin, TX 78704

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING CALL TO ORDER AND ROLL CALL Carl S. Richie, Jr., Chairperson Charles Bailey, Vice-Chairperson Tyra Duncan-Hall, 2 nd Vice-Chairperson Edwina Carrington, Commissioner Isaac Robinson, Commissioner September 15, 2016 Regular Meeting

PUBLIC NOTICE OF A MEETING TAKE NOTICE OF A BOARD OF COMMISSIONERS REGULAR BOARD MEETING OF THE HOUSING AUTHORITY OF THE CITY OF AUSTIN TO BE HELD AT HACA Central Office 1124 S. IH 35, Austin, TX 78704 (512.477.4488) COMMENCING AT 12:00 NOON ON THURSDAY, SEPTEMBER 15, 2016, TO CONDUCT BUSINESS AS FOLLOWS: CALL TO ORDER, ROLL CALL CERTIFICATION OF QUORUM Carl S. Richie, Jr., Chairperson Pledge of Allegiance Swearing in of Reappointed Board Members Citizens Communication - (Note: There will be a three-minute time limitation) Citywide Advisory Board Update Smoke Free 1 st Anniversary CONSENT AGENDA Items on the Consent Agenda may be removed at the request of any Commissioner and considered at another appropriate time on this agenda. Placement on the Consent Agenda does not limit the possibility of any presentation, discussion, or action at this meeting. Under no circumstances does the Consent Agenda alter any requirements under Chapter 551 of the Texas Government Code, Texas Open Meetings Act. CONSENT AGENDA APPROVAL OF THE FOLLOWING ITEMS PRESENTED IN THE BOARD MATERIALS: ITEM 1: Presentation, Discussion, and Possible Action regarding the Approval of a Board Minutes Summary for the Board Meeting held on August 24, 2016 APPROVAL OF THE FOLLOWING ITEMS PRESENTED IN THE BOARD MATERIALS: ITEM 2: Presentation, Discussion, and Possible Action regarding Resolution No. 2459: Resolution Approving Resolution of Austin Affordable PFC, Inc. Providing For The Issuance of Its Multifamily Housing Revenue Bonds (Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge), Series 2016 and To Take Such Other Actions Necessary Or Convenient To Facilitate The Development of the Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, and Pathways at Shadowbend Ridge Michael Gerber President & CEO Ron Kowal VP of AAHC ITEM 3: Presentation, Discussion, and Possible Action regarding Resolution No. 2460: Resolution Authorizing The Housing Authority of the City Of Austin (the "Authority") To Take Such Actions Necessary or Convenient to Facilitate the Development and Rehabilitation of the Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge (the "Projects") Ron Kowal VP of AAHC EXECUTIVE SESSION Carl S. Richie, Jr., Chairperson The Board may go into Executive Session (close its meeting to the public) Pursuant to: a. 551.071, Texas Gov t Code, consultations with Attorney regarding legal advice, pending or contemplated litigation; or a settlement offer; b. 551.072, Texas Gov t Code, discussion about the purchase, exchange, lease or value of real property; *The Housing Authority of the City of Austin (HACA) Board of Commissioners reserves the right to discuss and consider items out of order on the agenda on an as needed basis. The Housing Authority of the City of Austin is committed to compliance with the Americans with Disability Act. Reasonable modifications and equal access to the communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days (48 hours) before the meeting date. Please call Judy Paciocco or Nidia Hiroms at HACA at 512.477.4488, for additional information; TTY users route through Relay Texas at 711. For more information on HACA, please contact Nidia Hiroms at 512.477.4488 x 2104. Page 1 of 2

c. 551.074, Texas Gov t Code, discuss 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, including but not limited to evaluation of the President/CEO. d. 551.087, Texas Gov t Code, discuss certain economic development negotiations. OPEN SESSION If there is an Executive Session, the Board will return to Open Session for discussion, consideration and possible action of matters discussed in Executive Session. REPORTS The Board accepts the following reports: Status Update on the Rental Assistance Demonstration Finance Report President s Report Other Staff Reports Commissioners Reports/Questions to the Department Staff ADJOURNMENT Pursuant to 30.06, Penal Code, (trespass by holder of license with a concealed handgun), a person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not attend this meeting with a concealed handgun. Pursuant to 30.07, Penal Code (trespass by holder of license with an openly carried handgun), a person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not attend this meeting with a handgun that is carried openly. "En virtud del 30.06, Código Penal, (traspaso titular de licencia con una pistola), una persona bajo el subcapítulo H, capítulo 411, código de gobierno (Ley de licencia de arma or pistola), no se permiten en este reunión con una arma o pistola. "En virtud del 30.07, Código Penal (prevaricación por titular de la licencia con un arma o pistola abiertamente llevado), una persona bajo el subcapítulo H, capítulo 411, código de gobierno (Ley de licencia de arma o pistola), no se permiten en esta reunión con un arma o pistola que lleva abiertamente. Page 2 of 2

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING United States Pledge of Allegiance September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING Swearing in of Reappointed Board Members September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING Citizens Communication September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING Citywide Advisory Board Report September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING Smoke Free 1st Anniversary September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING CONSENT AGENDA AGENDA ITEM NO. 1 Presentation, Discussion, and Possible Action regarding the Approval of a Board Minutes Summary for the Board Meeting held on August 24, 2016 September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN (HACA) BOARD OF COMMISSIONERS REGULAR BOARD MEETING AUGUST 24, 2016 SUMMARY OF MINUTES The HOUSING AUTHORITY OF THE CITY OF AUSTIN (HACA) Board of Commissioners Public Meeting Notice was posted for 12:00 p.m. on Wednesday, AUGUST 24, 2016, to be held at HACA s Central Office, 1124 S. IH 35, Austin, TX 78704 CALL TO ORDER, ROLL CALL, CERTIFICATION OF QUORUM The Board of Commissioners meeting of the HOUSING AUTHORITY OF THE CITY OF AUSTIN (HACA) of AUGUST 24, 2016, was called to order by Carl S. Richie, Jr., Chairperson, at 12:14 p.m. The meeting was held at the HACA s Central Office, 1124 S. IH 35, Austin, TX 78704 Roll call certified a quorum was present. MEMBERS PRESENT: Carl S. Richie, Jr., Chairperson Tyra Duncan-Hall, 2 nd Vice Chairperson Edwina Carrington, Commissioner Charles Bailey, Vice Chairperson (arrived at 12:22) MEMBER(S) ABSENT: Isaac Robinson, Commissioner STAFF PRESENT: Michael Gerber, Sylvia Blanco, Ron Kowal, Lisa Garcia, Pilar Sanchez, Ron Kowal, Monica Garcia, Suzanne Schwertner, Thomas Cherian, Ann Gass, Michael Cummings, Jimi Teasdale, Michelle Eastland and Judy Paciocco ALSO IN ATTENDANCE: Jim Ewbank, Cokinos, Bosien & Young CITIZENS COMMUNICATION there was a three minute limitation. - Monica Guzman of Restore Rundberg stated she had concerns after reading the KUT article. Is there a relocation statement for the Rental Assistance Demonstration Program (RAD) to address how far the residents will be moved away, their needs for public transportation and healthcare, and the efforts made for children who attend school/transportation. Ms. Guzman stated Rachel Martinez from Georgian Manor has been her communication person. Prior to the meeting, Ms. Guzman had the opportunity to meet with Pilar Sanchez, HACA Vice President of Housing and Community Development, who briefed her on the relocation process. Michael Gerber, HACA President/CEO, stated HACA is very sensitive to the needs of the residents and no residents will be out of their units for an extended period of time. HACA is working with the contractors and has hired a relocation team to assist the residents with their concerns and needs. Stella Ubi, resident of Georgian Manor, had concerns of her toilet being too low and asked if she could get a higher commode. Mr. Gerber stated staff could make that accommodation. CITYWIDE ADVISORY BOARD REPORT Bill Alexander, Citywide Advisory Board (CWAB) Vice President reported on behalf of the Citywide Advisory Board. HACA has been very good to inform its residents about the Rental Assistance Demonstration (RAD) program which will allow new things to occur. Prior to RAD, a resident could only transfer for medical reasons. With RAD, a resident will be able to place his/her name on multiple waiting lists to transfer to another property or apply for a voucher after two years. With RAD, HACA will be able to use its 18 properties as collateral to make major repairs. Work will start in the next few months at the North Loop Apartments. There will be a few residents who will have to move to another property during the repairs, but they can either stay at their new property or return to North Loop. The residents have seen the improvement renderings and are excited about the RAD program. PUBLIC HEARING there was a three minute limitation. To accept public comment on the Housing Authority of the City of Austin s proposed rehabilitation of developments by HACA owned properties located at (i) 110 Bolles Circle, Austin, Texas78753, (ii)3628 Manchaca Road, Austin, Texas 78704, (iii)9120 Northgate, Austin, Texas 78758, (iv) 2300 W. North Loop, Austin, Texas 78756, and (v) 6328 Shadow Bend, Austin, Texas 78745 and the use of the rehabilitated housing projects on the properties as affordable housing. The Public Hearing commenced at 12:28 p.m. A slide presentation was given by Mr. Gerber to provide an overview of the Rental Assistance Demonstration (RAD) Program and how this program will enhance services by 1.) protecting the residents, 2.) providing improvements, and 3.) providing choices for the residents. Over $13 million is slated for RAD Phase I AUGUST 24, 2016 Page 1 of 4

renovations. There will be no additional density in the first phase. Ruby Roa will help the residents and their rights. HACA has also created a Resident Protection Team with many community providers serving on the advisory group. Mafid Mobifrak (sp) asked if there will be other phases for the remaining public housing properties. Mr. Gerber stated there will be a Phase I and Phase II, which will encompass all 18 properties. PUBLIC HEARING there was a three minute limitation. To accept public comment on the Housing Authority of the City of Austin s proposed development by HACA of the property located at approximately 1143 Shady Lane, Austin, Texas 78721, and the use of a newly constructed housing project on the property as affordable housing. The public hearing commenced at 12:34 p.m. Ron Kowal, Vice President of Housing Development and Asset Management, presented this item. This public hearing is a requirement by the state bond finance board for an inducement resolution regarding ThinkEast, a 180-unit tax credit property to be located on 6 acres on Shady Lane. The developers for this project are Atlantic Pacific Companies and Madhouse Development. The expected closing date for this property is the end of October 2016. More information regarding the project will be forthcoming in September. No public comment was received. Commissioner Duncan-Hall moved to close the public hearings. Commissioner Carrington seconded the motion. The motion passed. (4-Ayes and 0-Nays). Both public hearings closed at 12:38 p.m. CONSENT AGENDA APPROVAL OF THE FOLLOWING ITEMS PRESENTED IN THE BOARD MATERIALS: ITEM 1: Presentation, Discussion, and Possible Action regarding the Approval of a Board Minutes Summary for the Board Meeting held on May 19, 2016 Commissioner Carrington moved to approve the Board Minutes Summary for the Board Meeting held on May 19, 2016 as presented. Commissioner Duncan-Hall seconded the motion. The motion passed. (4-Ayes and 0-Nays). ACTION ITEMS APPROVAL OF THE FOLLOWING ITEMS PRESENTED IN THE BOARD MATERIALS: ITEMS WERE TAKEN OUT OF ORDER. ITEM 3: Presentation, Discussion, and Possible Action regarding Resolution No. 2451: Approval of the Revisions to the Admissions and Continued Occupancy Policy This policy along with the Tenant Selection Plans and the Choice Mobility Policy were brought before the Board on May 19, 2016. These items were posted for public comment on May 23 rd through June 21 st and extended through July 13 th. HACA did not receive any written public comments on these polices. The revisions to the ACOP included the new streamline rule, changes to the criminal background records per HUD PIH notices, and changes to the waitlists. Some of these changes will take effect immediately and others will take effect at a resident s recertification. The definition of an extremely low-income family has changed to be either 30% area median income (AMI) or below poverty level, whichever is the higher amount. For a family of four, extremely low income is $26,000. Commissioner Bailey moved to approve Resolution No. 2451: Approval of the revisions to the Admissions and Continued Occupancy Policy. Commissioner Duncan-Hall seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 4: Presentation, Discussion, and Possible Action regarding Resolution No. 2452: Approval of the Tenant Selection Plans for PBRA Family properties, PBRA & LIHTC Family properties and PBRA & LIHTC Elderly/Disabled properties Under RAD, the Tenant Selection Plans are the admissions policies for the Project Based Rental Assistance program. These plans also went out for public comment. Staff met with Legal Aid and the Austin Tenant Council and incorporated their verbal comments. With the PBRA program, residents can place their names on multiple waiting lists. The residents do not need a valid reason like those in public housing, i.e. emergency transfer, reasonable accommodation, over/under housed or family violence. For PBRA/LIHTC properties, a resident can only transfer from one unit to another on the property. Commissioner Richie asked why there are fluctuations on the Public Housing waitlist and asked for the Board to be made aware of the number of families who have moved back on the waitlist. Sylvia Blanco, HACA Executive Vice President, stated there are fluctuations due to current local preferences for the most vulnerable populations, the elderly and disabled, that may cause an applicant with no preference to experience fluctuations in their rank on the waitlist. Ms. Blanco stated the Admissions Department is currently purging the waitlist and staff will review the preferences for Board consideration during the planning process of the PHA Annual Plan. Commissioner Bailey moved to approve Resolution No. 2452: Approval of the Tenant Selection Plans for PBRA Family properties, PBRA & LIHTC Family properties and PBRA & LIHTC Elderly/Disabled properties. Commissioner Duncan-Hall seconded the motion. The motion passed. (4-Ayes and 0-Nays). AUGUST 24, 2016 Page 2 of 4

ITEM 5: Presentation, Discussion, and Possible Action regarding Resolution No. 2453: Approval of the Choice Mobility Policy The Choice Mobility program allows a resident the choice to request a Housing Choice Voucher after living in a Project Based Rental Assistance (PBRA) property for 24 months. This policy provides how HACA will administer the vouchers, which will be limited to a third of the vouchers (potentially 100 vouchers) that turnover on an annual basis. This policy also went out for public comment and received no written comments. Commissioner Carrington moved to approve Resolution No. 2453: Approval of the Choice Mobility Policy. Commissioner Duncan-Hall seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 6: Presentation, Discussion, and Possible Action of Resolution No. 2454 : Approval of the Revisions to the Housing Choice Voucher Administrative Plan This plan was brought before the Board on May 19, 2016. The plan was posted for public comment on May 23 rd through June 21 st and extended through July 13 th. Staff met with Legal Aid and the Austin Tenant Council and incorporated their verbal comments. HACA did not receive any written public comments on the proposed revisions. Per HUD regulations, there is an income targeting of 75% of the vouchers to extremely low income families who are at 30% AMI. On an annual basis, roughly 15% of these vouchers are returned as these families cannot find an affordable place to live. Commissioner Duncan- Hall moved to approve Resolution No. 2454: Approval of the Revisions to the Housing Choice Voucher Administrative Plan. Commissioner Carrington seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 7: Presentation, Discussion, and Possible Action of Resolution No. 2455 Approval of the Revisions to the 2016 Public Housing Authority Annual Plan The revisions to the 2016 PHA Plan incorporate those changes presented in both the Admissions and Continued Occupancy Policy and the Housing Choice Voucher Administrative Plan. A 45-day public comment period commenced May 23 rd and was extended to July 28 th. No written comments were received. A public hearing regarding these changes was presented to the Citywide Advisory Board on June 14, 2016. Comments from that meeting have been incorporated into the PHA Annual Plan. Michael Gerber stated HACA did reach out to Legal Aid and the Austin Tenant Council regarding all the proposed revisions to the plans and policies presented at this meeting. Commissioner Bailey moved to approve Resolution No. 2455: Approval of the Revisions to the 2016 Public Housing Authority Annual Plan. Commissioner Duncan-Hall seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 2: Presentation of the Independent Auditor s Report for Fiscal Year Ending March 31, 2016 Shawn Cedar of Berman Hopkins Wright Laham, CPAs and Associates presented the FYE 2016 Independent Auditor s Report. HACA s total net position is $70,950,873 with a restricted net position of $803,000. HACA receives a total of $73,980,916 in HUD funding. The following areas were tested in the audit: payroll/disbursements, procurement, the Housing Choice Voucher (HCV) waitlist, the Section Eight Management Assessment Program (SEMAP), a sample of 40 HCV tenant files and a sample of 10 Public Housing tenant files. There were no issues or findings with the FYE 2016 audit. There are no written management comments/recommendations. Next year will be the start of the Governmental Accounting Standards Board Statements to set generally accepted accounting principles (GAAP). Commissioner Duncan-Hall moved to approve the Independent Auditor s Report for Fiscal Year Ending March 31, 2016. Commissioner Carrington seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 12: Presentation, Discussion, and Possible Action regarding Resolution No. 2460: Authorizing a two-year extension of an auditing services contract with Berman Hopkins Wright Laham, CPAs and Associates, LLP (Berman Hopkins) This is the final two-year extension of the current contract with Berman Hopkins Wright Laham, CPAs and Associates, LLP (Berman Hopkins). This resolution also includes an additional scope of work in the amount of $17,500 for a single audit for the FYE 2016 for Southwest Housing Compliance Corporation. Commissioner Carrington moved to Approve Resolution No. 2460: Authorizing a two-year extension of an auditing services contract with Berman Hopkins Wright Laham, CPAs and Associates, LLP (Berman Hopkins) and adding an additional scope of work for Southwest Housing Compliance Corporation. Commissioner Bailey seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 8: Presentation, Discussion, and Possible Action regarding Resolution No. 2456: Ratifying staff action approving the contract with Overland, Pacific and Cutler (OPC) to provide relocation, implementation and consulting services for properties and rehabilitating through the Rental Assistance Demonstration Program HACA received five bid proposals for tenant relocation and consulting services for Phase I of RAD. Overland Pacific and Cutler (OPC) will provide one-on-one visits with each family, create files for each family and assist with the transition of each family who moves. HACA has already started the contract with the first RAD property, Manchaca Village. There are currently only two families remaining at Manchaca Village who have not received the one-on-one visits. References were verified through other public housing authorities who have used OPC for tenant relocation services. The Board asked for a focus group to be formed at the end of the relocation services and to provide those results. Commissioner Bailey moved to approve Resolution No. 2456: Ratifying staff action approving the contract with Overland, Pacific and Cutler (OPC) to provide AUGUST 24, 2016 Page 3 of 4

relocation, implementation and consulting services for properties and rehabilitating through the Rental Assistance Demonstration Program. Commissioner Carrington seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 9: Presentation, Discussion, and Possible Action regarding Resolution No. 2457: Approval of the Contract for RAD Phase I Construction Services This item is to allow HACA to enter into negotiations with S. Cook Construction Company to provide construction services for RAD Phase I in an amount not to exceed $17,592,000. This work will comprise of eight properties receiving modernization work. HACA found Dykema Architects and S. Cook Construction Company s qualifications to be exemplary, reasonably priced and consistent with HACA s objective. Additionally, HACA staff met with both Dykema Architects and S. Cook Construction regarding the construction timelines and limited contingency funds. Commissioner Duncan-Hall moved to approve Resolution No. 2457: Approving the Contract for RAD Phase I Construction Services to S. Cook Construction. Commissioner Carrington seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 10: Presentation, Discussion, and Possible Action regarding Resolution No. 2458: Approval of the Selection of RAD Phase II Developer Partners HACA solicited qualifications and proposals from housing development teams to comprehensively plan for and potentially redevelop one or more of the properties in HACA s RAD Phase II portfolio. Eleven proposals were received and evaluated by HACA staff and five developer teams were asked to present. Staff recommends three development teams: Carleton, Atlantic Pacific/Madhouse, and ITEX. Carleton will lead the redevelopment of Chalmers Courts. The scope will potentially be expanded to include redevelopment of selected areas of Santa Rita Courts and Rosewood Courts. Atlantic Pacific/Madhouse will lead the redevelopment of Goodrich Place. ITEX will complete the rehabilitation of Gaston Place. HACA will start the legal process of Memorandums of Understanding (MOUs) and other protections. All three firms are very well known in the tax credit industry. Commissioner Duncan-Hall moved to approve Resolution No. 2458: Approval of the Selection of RAD Phase II Developer Partners to Carleton, Atlantic Pacific/Madhouse, and ITEX as presented. Commissioner Carrington seconded the motion. The motion passed. (4-Ayes and 0-Nays). ITEM 11: Presentation, Discussion, and Possible Action regarding Resolution No. 2459: Authorizing the Housing Authority of the City of Austin to take the following actions with regard to the Marquis at Volente Apartment Development (the Development ) in Austin, Texas This item is for the purchase of the Marquis at Volente, a 208-unit property built in 1999 as a tax credit property. It was foreclosed upon in 2007, as the rents did not meet the proforma rents and lost all of its affordability. HACA will partner with Enterprise in a 50/50 partnership to acquire the property at $26 million. Each partner will provide $3 million towards the closing costs. The property currently does not accept vouchers, but will accept vouchers upon the purchase. There are many amenities close to the property, i.e. daycare, and it is located in a high opportunity area. The board asked if a LURA could be considered on this property at 50% AMI or below. Commissioner Carrington moved to approve Resolution No. 2459: Authorizing the Housing Authority of the City of Austin to take the following actions with regard to the Marquis at Volente Apartment Development (the Development ) in Austin, Texas. Commissioner Bailey seconded the motion. The motion passed. (4-Ayes and 0-Nays). EXECUTIVE SESSION The Board of Commissioners recessed into Executive Session at 2:25 p.m. The Board of Commissioners reconvened the meeting at 4:00 p.m. No action was taken. REPORTS No reports presented. ADJOURNMENT Commissioner Carrington moved to adjourn the Board Meeting. Commissioner Bailey seconded the motion. The motion passed. (4-Ayes and 0-Nays). The meeting adjourned at 4:00 p.m. Michael G. Gerber, Secretary Carl S. Richie, Jr., Chairperson AUGUST 24, 2016 Page 4 of 4

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING ACTION ITEMS AGENDA ITEM NO. 2 Presentation, Discussion, and Possible Action regarding Resolution No. 2459: Resolution Approving Resolution of Austin Affordable PFC, Inc. Providing For The Issuance of Its Multifamily Housing Revenue Bonds (Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge), Series 2016 and To Take Such Other Actions Necessary Or Convenient To Facilitate The Development of the Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, and Pathways at Shadowbend Ridge September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS Resolution No. 2459 MEETING DATE: September 15, 2016 STAFF CONTACT: TITLE: ACTION: Ron Kowal, Vice President of Housing Development Discussion, Consideration and Possible Action of Resolution No. 2459: Resolution approving a resolution of the Austin Affordable PFC, Inc. providing for the issuance of its multifamily housing revenue bonds (Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge), Series 2016 and to take such other actions necessary or convenient to facilitate the development of the above mentioned properties. Motion to Approve Resolution No. 2459: Approval of resolution of the Austin Affordable PFC, Inc. providing for the issuance of its multifamily housing revenue bonds (Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge), Series 2016 and to take such other actions necessary or convenient to facilitate the development of the above mentioned properties. SUMMARY: The Rental Assistance Demonstration (RAD) Program was authorized by the Consolidated and Further Continuing Appropriations Act of 2012. RAD is a tool that enables Public Housing Authorities to convert public housing subsidies into long-term, Section 8 rental assistance subsidy. This is beneficial to PHAs because historically public housing subsidies and funding for capital projects have been unpredictable and fluctuate annually due to federal budget cuts. The project based rental assistance program provides a much more stable and predictable annual subsidy. More importantly, the RAD tool provides PHA s an opportunity to make substantial physical improvements to its properties, resulting in a higher quality of life for residents. Additionally, provisions with RAD ensure that existing residents are protected and enjoy more choices on where they wish to reside. The Housing Authority of the City of Austin (HACA) submitted applications and received a Commitment to enter into a Housing Assistance Payment Contract (CHAP) award on 9 properties and reservations to convert to RAD on the balance of its portfolio. Part of RAD allows HACA to complete necessary repairs and renovations to the properties mentioned. The repairs and renovations will be financed using 4% tax credits through the Texas Department of Housing and Community Affairs and Tax Exempt Bond proceeds from the

issued by the Austin Affordable PFC, Inc. The Housing Authority of the City of Austin created the Austin Affordable PFC, Inc. in November of 2012. And as a subsidiary of the Housing Authority all actions require board approval by the Housing Authority. Resolution 2459 approves the actions of Austin Affordable PFC, Inc., providing for the issuance of its multifamily housing revenue bonds (Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge), Series 2016 and to take such other actions necessary or convenient to facilitate the development of the above mentioned properties. Fiscal Impact: None Budgeted Name of Fund(s) Dollar Amount(s) Expenditure or Account(s) Not Budgeted, Will result in expenditures indicated below: STAFF ANALYSIS SUMMARY PRESIDENT AND CEO: DEPARTMENT HEAD: FINANCE REVIEW:

THE STATE OF TEXAS COUNTY OF TRAVIS CERTIFICATE FOR RESOLUTION I, the undersigned officer of the Housing Authority of the City of Austin (the "Authority") do hereby make and execute this Certificate for the benefit of all persons interested in the validity of all actions and proceedings of the Authority. I do hereby certify as follows: 1. I am the duly chosen, qualified and acting officer of the Authority for the office shown beneath my signature, and in such capacity I am familiar with the matters contained in this Certificate. 2. The Board of Commissioners of the Authority convened on September 15, 2016, the meeting place open to the public and notice of said meeting giving the date, place and subject thereof having been posted as prescribed by Chapter 551, Texas Government Code, and the roll was called of the duly constituted officers and members of said Board of Commissioners, to wit: Carl S. Richie, Chairperson Charles C. Bailey, Vice-Chairperson Edwina Carrington, Commissioner Dr. Tyra Duncan-Hall, Commissioner Isaac Robinson, Commissioner Michael Gerber, President and CEO and all of said persons were present at said meeting. Whereupon, among other business considered at the meeting, the attached resolution (the "Resolution") entitled: RESOLUTION APPROVING RESOLUTION OF AUSTIN AFFORDABLE PFC, INC. PROVIDING FOR THE ISSUANCE OF ITS MULTIFAMILY HOUSING MULTIFAMILY HOUSING REVENUE BONDS (PATHWAYS AT GEORGIAN MANOR, PATHWAYS AT MANCHACA VILLAGE, PATHWAYS AT NORTHGATE, PATHWAYS AT NORTH LOOP, PATHWAYS AT SHADOWBEND RIDGE), SERIES 2016 AND TO TAKE SUCH OTHER ACTIONS NECESSARY OR CONVENIENT TO FACILITATE THE DEVELOPMENT OF THE PATHWAYS AT GEORGIAN MANOR, PATHWAYS AT MANCHACA VILLAGE, PATHWAYS AT NORTHGATE, PATHWAYS AT NORTH LOOP, PATHWAYS AT SHADOWBEND RIDGE was introduced for the consideration of the Board. It was then duly moved and seconded that the Resolution be passed; after due discussion, the motion, carrying with it the passage of the Resolution, prevailed and carried by the following vote: 4836-2189-9576.v1

AYES: NAYS: ABSTENTIONS: 2. A true, full, and correct copy of the Resolution as passed is attached to and follows this certificate; the Resolution has been duly recorded in the Board minutes of the Meeting; the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of the Board as indicated; 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 that the Resolution would be introduced and considered for passage at the Meeting, and each of the officers and members consented, in advance, to the holding of the Meeting for such purpose; the Meeting was open to the public as required by law; and public notice of the time, place, and subject of the Meeting was given as required by Chapter 551, Government Code, as amended. SIGNED: September 15, 2016. Secretary Treasurer 4836-2189-9576.v1-2-

RESOLUTION NO. 2459 RESOLUTION APPROVING RESOLUTION OF AUSTIN AFFORDABLE PFC, INC. PROVIDING FOR THE ISSUANCE OF ITS MULTIFAMILY HOUSING MULTIFAMILY HOUSING REVENUE BONDS (PATHWAYS AT GEORGIAN MANOR, PATHWAYS AT MANCHACA VILLAGE, PATHWAYS AT NORTHGATE, PATHWAYS AT NORTH LOOP, PATHWAYS AT SHADOWBEND RIDGE), SERIES 2016 AND TO TAKE SUCH OTHER ACTIONS NECESSARY OR CONVENIENT TO FACILITATE THE DEVELOPMENT OF THE PATHWAYS AT GEORGIAN MANOR, PATHWAYS AT MANCHACA VILLAGE, PATHWAYS AT NORTHGATE, PATHWAYS AT NORTH LOOP, PATHWAYS AT SHADOWBEND RIDGE WHEREAS, Austin Affordable PFC, Inc. (the Issuer ) was created by the Housing Authority of the City of Austin (the Sponsor ) pursuant to the provisions of the Public Facility Corporation Act, Chapter 303, Texas Local Government Code, as amended (the Act ); and WHEREAS, Section 303.071 of the Act requires that the governing body of the Sponsor approve by resolution any of the Issuer s bonds; WHEREAS, it is deemed necessary and advisable that this Resolution be adopted; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HOUSING AUTHORITY OF THE CITY OF AUSTIN THAT: Section 1. The President and CEO of the Sponsor and/or his designee is hereby authorized to review, approve and execute all certificates, affidavits, agreements, documents and other writings (collectively the "Agreements") the President shall deem to be necessary or desirable in the consummation of the transactions herein contemplated. Section 2. The Resolution authorizing the issuance of Austin Affordable PFC, Inc. Multifamily Housing Revenue Bonds (Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge), Series 2016, adopted by the Board of Directors of the Issuer on September 15, 2016 (the Issuer Resolution ), a copy of which is attached hereto as Exhibit A and made a part hereof for all purposes, is hereby approved. Section 3. The Bonds, which are issued in an aggregate principal amount not to exceed $30,500,000, to finance the acquisition and construction of the five multifamily housing residential rental developments as described in the Issuer Resolution including, without limitation, utilities, foundation, structures and equipment, and owned and operated by HACA Pathways I, LP, a Texas limited partnership (the Projects ) are hereby approved pursuant to Section 303.071 of the Act. Section 4. The approval herein given is in accordance with the provisions of Section 303.071 of the Act and is not to be construed as any undertaking by the Sponsor, and the Bonds shall never constitute and indebtedness or pledge of the Sponsor, the City of Austin or the State of Texas, within the meaning of any constitutional or statutory provision, and the holders of the Bonds shall never be paid in whole or in part out of any funds raised or to be raised by taxation 4836-2189-9576.v1

or any other revenues of the Issuer, the Sponsor, the City of Austin or the State of Texas except those revenues assigned and pledged by the Issuer in the Trust Indenture (as defined in the Issuer Resolution). Section 5. The issuance of the Bonds to assist in the financing of the Project will promote the public purposes set forth in Section 303.002 of the Act, will accomplish a valid public purpose of the Sponsor by providing for the acquisition, construction, rehabilitation, renovation, repair, equipping, furnishing and placement in service of public facilities in an orderly, planned manner and at the lowest possible borrowing costs, and will provide decent, safe, and sanitary urban housing for persons of low income. Section 6. An income that is greater than 80% of Median Gross Income for the Austin area is the amount of income that the Sponsor considers necessary for families or persons to live, without financial assistance, in decent, safe and sanitary housing without overcrowding. Section 7. The programs and expenditures authorized and contemplated by the Issuer Resolution are hereby in all respects approved. Section 8. The President and Secretary of the Sponsor and the other officers of the Sponsor are hereby authorized, jointly and severally, to execute and deliver such endorsements, instruments, certificates, documents, or papers necessary and advisable to carry out the intent and purposes of this Resolution. Section 9. This resolution shall be in full force and effect from and upon its adoption. PASSED this 15 th day of September, 2016. [End of Resolution.] 4836-2189-9576.v1-2-

Exhibit A ISSUER RESOLUTION [To be attached] 4836-2189-9576.v1 A-1

HOUSING AUTHORITY OF THE CITY OF AUSTIN Rental Assistance Demonstration Program (RAD) Preserving Public Housing, Improving Residents Lives, Sustaining HACA Resources The Housing Authority of the City of Austin (HACA) is breaking ground with a bold new initiative to preserve affordable housing for the lowest-income Austinites and improve the lives of the more than 4,300 who rely on that public housing. By participating in a new HUD program known as Rental Assistance Demonstration (RAD), HACA will be able to finance critically needed improvements to its aging properties and guarantee they ll be available to low-income residents for the next 40 years. The program will give HACA more control over its finances and create more opportunities for housing choice going forward. RAD OVERVIEW RAD was initiated by HUD in 2012 to address U.S. public housing s national $26 billion backlog of needed repairs and improvements. Under RAD, existing (and declining) public housing subsidies are converted into more stable rental assistance contracts for each property. This allows housing authorities to leverage that subsidy to finance rehabilitation and preservation of aging properties. HOW RAD WORKS AT HACA There are several different types of RAD conversions being planned by HACA: Straight conversions: For properties that are newer and have fewer maintenance needs, HACA will implement selected property-wide improvements. Residents will continue to have access to HACA services and expanded housing choices. Rehabilitations: Many HACA properties will see in-depth improvements in each unit floors, kitchens, bathrooms, A/C and heat, and other upgrades and modernizations. HACA is also focused on improving the energy efficiency of its entire portfolio of properties. Redevelop/Add density: In later phases of the RAD project, HACA will explore opportunities to create additional affordable or market-rate units at certain properties. None of HACA s existing 1,839 subsidized units will be eliminated as part of RAD conversion.

NEXT STEPS HACA has already held resident meetings at each of its 18 properties. This fall, HACA will complete RAD conversions of Phase 1 properties (see chart below) with construction to follow. Also, HACA will be securing financing from multiple sources, including tax credit applications and pursuit of low-interest loans; and preparing for the more complex RAD conversions in the second phase, to be implemented in 2017 and early 2018. HACA PROPERTIES PHASE 1 RAD CONVERSIONS PROPERTY NAME ADDRESS YEAR BUILT TOTAL UNITS ANTICIPATED TYPE OF CONVERSION DATE OF CONVERSION CITY COUNCIL DISTRICT BOULDIN OAKS 1203 Cumberland Rd., 78704 1972 144 Straight 10/1/16 3 - Renteria MANCHACA II 6113 Buffalo Pass, 78745 1979 33 Straight 10/1/16 5 - Kitchen CORONADO HILLS 1438 Coronado Hills Dr., 78752 1983 48 Straight 10/1/16 1 - Houston GEORGIAN MANOR 110 Bolles Circle, 78753 1973 94 Rehab 11/1/16 4 - Casar NORTH LOOP 2300 W. North Loop Blvd., 78756 1975 130 Rehab 11/1/16 7 - Pool NORTHGATE 9120 Northgate Blvd, 78758 1979 50 Rehab 11/1/16 4 - Casar SHADOWBEND RIDGE 6328 Shadow Bend, 78745 1979 50 Rehab 11/1/16 2 - Garza MANCHACA VILLAGE 3628 Manchaca Rd., 78704 1979 33 Rehab 11/1/16 5 - Kitchen HACA PROPERTIES PHASE 2 RAD CONVERSIONS PROPERTY NAME ADDRESS YEAR BUILT TOTAL UNITS CITY COUNCIL DISTRICT CHALMERS COURTS 1801 E. 4th St., 78702 1940 158 3 - Renteria ROSEWOOD COURTS 1143 Salina St., 78702 1939 124 1 - Houston SANTA RITA COURTS 2341 Corta St., 78702 1939 97 3 - Renteria MEADOWBROOK 1201 W. Live Oak St., 78704 1952 160 9 - Tovo BOOKER T WASHINGTON 905 Bedford St., 78702 1954 216 1 - Houston LAKESIDE APARTMENTS 85 Trinity St., 78701 1967 164 9 - Tovo SALINA APARTMENTS 1143 Salina St., 78702 1966 32 1 - Houston THURMOND HEIGHTS 8426 Goldfinch Ct., 78758 1972 144 4 - Casar GOODRICH PLACE 2126 Goodrich Ave., 78704 1973 40 5 - Kitchen GASTON PLACE 1941 Gaston Place Dr., 78723 1978 100 5- Kitchen SCATTERED SITES Varies 22 Various

RAD Rental Assistance Demonstration A HUD program to preserve public housing and protect the residents. 9/9/2016 1

Manchaca Village Parking Lots Playground Canopy Picnic Area with Grills Community Room Upgrades New Kitchens New Appliances New Bathrooms New Floors New Paint Ceiling Fans/Lights Washer Dryers Manchaca Village 2

Shadowbend Ridge Playground Canopy Picnic Area with Grills Community Room Upgrades New Roofs New Kitchens New Appliances New Bathrooms New Floors New Doors New Paint Ceiling Fans/Lights Hot Water Heaters Washer Dryers Shadowbend 3

Georgian Manor Parking Lots Playground Canopy Picnic Area with Grills Community Room Upgrades New Kitchens New Appliances New Bathrooms New Floors New Paint Ceiling Fans/Lights Repair Ceilings Washer Dryers Georgian Manor 4

Northgate West Drainage Improvements New Kitchens Parking Lots New Appliances Playground Canopy New Bathrooms Picnic Area with Grills New Floors Community Room New Paint Upgrades Ceiling Fans/Lights New Roofs Washer Dryers Northgate 5

North Loop Parking Lots Landscaping Picnic Area with Grills Community Room Upgrades New Roof Elevator Repairs Security Cameras Repair Ceilings Ceiling Fans Hot Water Heaters New Kitchens New Appliances New Bathrooms New Floors New Paint New Doors North Loop 6

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING AGENDA ITEM NO. 3 Presentation, Discussion, and Possible Action regarding Resolution No. 2460: Resolution Authorizing The Housing Authority of the City Of Austin (the "Authority") To Take Such Actions Necessary or Convenient to Facilitate the Development and Rehabilitation of the Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge (the "Projects") September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS Resolution No. 2460 MEETING DATE: September 15, 2016 STAFF CONTACT: TITLE: ACTION: Ron Kowal, Vice President of Housing Development Discussion, Consideration and Possible Action of Resolution No. 2460: Resolution authorizing the Housing Authority of the City of Austin (The Authority ) to take such actions necessary or convenient to facilitate the development and rehabilitation of Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge. Motion to Approve Resolution No. 2460: Approval of resolution of the Housing Authority of the City of Austin to take such actions necessary or convenient to facilitate the development and rehabilitation of the Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge. SUMMARY: The Rental Assistance Demonstration (RAD) Program was authorized by the Consolidated and Further Continuing Appropriations Act of 2012 which provided fiscal year 2012 appropriations for HUD to support this program. RAD is a tool that enables Public Housing Authorities to convert public housing subsidies into long-term, Section 8 rental assistance subsidy. This is beneficial to PHAs because historically public housing subsidies and funding for capital projects have been unpredictable and fluctuate annually due to federal budget cuts. The project based rental assistance program provides a much more stable and predictable annual subsidy. More importantly, the RAD tool provides PHA s an opportunity to make substantial physical improvements to its properties, resulting in a higher quality of life for residents. Additionally, provisions with RAD ensure that existing residents are protected and enjoy more choices on where they wish to reside. The Housing Authority of the City of Austin (HACA) submitted applications and received a Commitment to enter into a Housing Assistance Payment Contract (CHAP) award on 9 properties and reservations to convert to RAD on the balance of its portfolio. Part of RAD allows HACA to complete necessary repairs and renovations to the properties mentioned. The repairs and renovations will be financed using 4% tax credits through the Texas Department of Housing and Community Affairs and Tax Exempt Bond proceeds issued by the Austin Affordable PFC, Inc.

Resolution 2460 authorizes The Housing Authority of the City of Austin to take such action as needed to facilitate the renovations for the Pathways at Georgian Manor, Pathways at Manchaca Village, Pathways at Northgate, Pathways at North Loop, Pathways at Shadowbend Ridge, and to take such other actions necessary or convenient to facilitate the development and renovations of the above mentioned properties. Fiscal Impact: None Budgeted Name of Fund(s) Dollar Amount(s) Expenditure or Account(s) Not Budgeted, Will result in expenditures indicated below: STAFF ANALYSIS SUMMARY PRESIDENT AND CEO: DEPARTMENT HEAD: FINANCE REVIEW:

RESOLUTION NO. 2460 RESOLUTION AUTHORIZING THE HOUSING AUTHORITY OF THE CITY OF AUSTIN (THE "AUTHORITY") TO TAKE SUCH ACTIONS NECESSARY OR CONVENIENT TO FACILITATE THE DEVELOPMENT AND REHABILITATION OF THE PATHWAYS AT GEORGIAN MANOR, PATHWAYS AT MANCHACA VILLAGE, PATHWAYS AT NORTHGATE, PATHWAYS AT NORTH LOOP, PATHWAYS AT SHADOWBEND RIDGE (THE "PROJECTS") WHEREAS, the Authority owns the sites containing the Projects (collectively, the Land ); WHEREAS, the Authority and HACA Pathways I, LP (the Partnership ) desire to enter into ground leases (the "Ground Leases") granting site control of the Land to the Partnership; WHEREAS, pursuant to the terms of the Ground Leases, the Partnership is required to develop and rehabilitate the Projects as developments dedicated for low-income persons in compliance with the laws and regulations applicable to eligible tenants under the federal low income housing tax credit program as established at 26 U.S.C. 42 and regulations promulgated pursuant thereto; WHEREAS, the Authority desires to convey title to the improvements comprising the Projects to the Partnership via bills of sale; WHEREAS, the Authority desires to extend seller financing to the Partnership in the approximate aggregate principal amount of $25,050,000 in connection with the Partnership s acquisition of the improvements; WHEREAS, the Authority may grant or loan demolition, relocation, capital and/or other financing funds to the Austin Affordable Housing Corporation to facilitate the redevelopment of the Projects; WHEREAS, the Authority has submitted an application with the United States Department of Housing and Urban Development ( HUD ) for approval under the Rental Assistance Demonstration ( RAD ) Program to designate certain units within the Projects as RAD units, and upon receipt of HUD approval, the Authority desires to implement the RAD units; NOW, THEREFORE, in connection with the development, construction and equipping of the Project, the Board of Commissioners hereby adopt the following resolutions: BE IT RESOLVED, that the President and CEO of the Authority and/or his designee is hereby authorized to review, approve and execute all certificates, affidavits, agreements, documents and other writings (collectively the "Agreements") the President and CEO shall deem to be necessary or desirable in the consummation of the transactions herein contemplated; 4828-6476-1912.v1 1

BE IT FURTHER RESOLVED, that all acts, transactions, or agreements undertaken prior hereto by the President and CEO of the Authority or his designee, in connection with the foregoing matters are hereby ratified and confirmed as the valid actions of the Authority, effective as of the date such actions were taken; and BE IT FURTHER RESOLVED, that the President and CEO is hereby authorized and directed for and on behalf of, and as the act and deed of the Authority, to take such further action in the consummation of the transactions herein contemplated and to do any and all other acts and things necessary or proper in furtherance thereof, as the President and CEO shall deem to be necessary or desirable, and all acts heretofore taken by the designee of the President and CEO to such end are hereby expressly ratified and confirmed as the acts and deeds of the Authority. This resolution shall be in full force and effect from and upon its adoption. [Remainder of page intentionally left blank for signature] 4828-6476-1912.v1 2

PASSED this 15th day of September, 2016. ATTEST: Carl S. Richie, Jr., CHAIRPERSON Michael Gerber, Secretary 4828-6476-1912.v1 3

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING EXECUTIVE SESSION The Board may go into Executive Session (close its meeting to the public) Pursuant to: a. 551.071, Texas Gov t Code, consultations with Attorney regarding legal advice, pending or contemplated litigation; or a settlement offer; b. 551.072, Texas Gov t Code, discussion about the purchase, exchange, lease or value of real property; c. 551.074, Texas Gov t Code, discuss 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; including but not limited to the evaluation of the President/CEO d. 551.087, Texas Gov t Code, discuss certain economic development negotiations. Return to Open Session for discussion, consideration and possible action of matters discussed in Executive Session September 15, 2016 Regular Meeting

HOUSING AUTHORITY OF THE CITY OF AUSTIN BOARD OF COMMISSIONERS REGULAR BOARD MEETING REPORTS September 15, 2016 Regular Meeting