Q&A for Special Meeting 8/6/24

Julio Gonzalez Altamirano · 2024-08-05T11:47:00+00:00

Dear Directors, This is a thread to facilitate staff questions ahead of our special meeting on 8/6/24. Please add your questions here so that staff can pre...

Dianna Grey

1. Question from Director Wenig: When you state ‘at the partnership’s expense’ in discussion of mitigation strategies, etc. In simple terms, this would mean we would bear some of the expense?

No, this suggests that payment would be made (or possibly reimbursed) out of the individual project’s funds/bank account, which are maintained separately by developer partners for each project, rather than paid for out of SHFC’s operating funds.

Dianna Grey

Question from Director Wenig (paraphrased): An online search at https://www.levelset.com/projects/texas/manor/6625-e-parmer-ln-manor-tx-78653-1/ itemizes 9 mechanic’s liens on the property. Has SHFC has ever contemplated requiring a partial release of liens as part of pushing for better compliance from a developer?

Staff have identified the number of mechanic’s liens filed on Rise Residential developments as a concern, and communicated that these issues must be resolved. While the construction lender typically requires “down-date endorsements” (evidencing no active liens) to disburse draws on the project, staff has discussed requiring that these endorsements accompany the draw requests in order to sign off.

DeLea Becker

thank you for this. need more detailed information on delays. Travis Coutny Fire for Manchester. Timeline - when the fire requiment came to their attention - site plan amendment - site plan amendment approved. Same questions for Austin Lakeway. Timeline showing the Local Gov requirement to pave adjacent street. timeline of disagreements over swear and impact fees. when was this resolved or still ongoing?

Dianna Grey

DeLea Becker

Re: need more detailed information on delays. Travis Coutny Fire for Manchester. Timeline - when the fire requiment came to their attention - site plan amendment - site plan amendment approved. Same questions for Austin Lakeway. Timeline showing the Local Gov requirement to pave adjacent street. timeline of disagreements over swear and impact fees. when was this resolved or still ongoing?

Rise Residential will be in attendance today to answer these questions or offer additional follow-up information.

DeLea Becker

Need an understanding of construction timelines and contracts. For both projects. CONTRACT Lump Sum Contract? Cost Plus Contract? SCHEDULE 1. Original Baseline Schedule 2. Updated Schedule 3. Schedule Variance Analysis 4. Schedule of Values 5. Construction Schedule:

Dianna Grey

DeLea Becker Rise Residential will be in attendance today to answer these questions or offer additional follow-up information.

DeLea Becker

Dianna Grey , have we received some of these fees? or none?

Dianna Grey

DeLea Becker

have we received some of these fees? or none?

Please see page 3 of the project-specific documents provided in the board package, where SHFC revenues are more fully discussed. Both projects received fees at closing, but annual bond issuer fees have gone unpaid. Payment of additional Developer Fees and/or Incentive Management Fees require progress on construction and income from operations.

DeLea Becker

YES / NO Vote -

we can vote to change the terms of our deal with Rise? And if they agree to our amendments, we will approve initial inducements for supplementary bonds

When is the 2024 Bond Review Board deadline? When must SHFC reach a decision and vote to meet the deadline?

Dianna Grey

DeLea Becker 🇦

YES / NO Vote -

we can vote to change the terms of our deal with Rise? And if they agree to our amendments, we will approve initial inducements for supplementary bonds

When is the 2024 Bond Review Board deadline? When must SHFC reach a decision and vote to meet the deadline?

Staff will be prepared to discuss this at today's meeting.

Jan Wenig

Good Morning Colleagues, I appreciate the close review of the issues at hand as we prepare to discuss Rise Residential's requests to SHFC at the Special Meeting later today. On the same website where I located the information re: Mechanics Liens on the Manor property, I found there are liens on all Rise properties developed with SHFC: On Lakeway there are 6 mechanics liens totalling $1,909,297; on Creekview there are 10 mechanics liens totalling$ 1,874,162; and on Colorado Creek there are 6 mechanics liens totally $661,518. I look forward to addressing this pattern of nonpayment, and late payment by Rise Residential, and discussing how we might make use of 'down date endorsements' as per our ED's comment above, and/or other steps we might take to improve compliance.