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HomeMy WebLinkAbout1979-01-12 - Minutes - JE -.� MINUTES OF A RESIDENTIAL HOUSING FACILITIES BOARD MEETING A meeting of the City of Fayetteville, Arkansas, Residential Housing Facili- ties Board was held on Friday, January 12, 1979, at 3:00 o'clock P.M. in the Board of Directors Room, City Administration Building, Fayetteville, Arkansas. • MEMBERS PRESENT: Chairman F. H. Martin, Ron Pennington, Dale Christy, George Faucette, Jr. and John Dominick. OTHERS PRESENT: Jim McCord, Jim Buttry, John Rauscher, Don Grimes (Powell $ Satterfield) , Gail Biswell, John Carpenter, Beth Smith and Scott VanLaningham. ROLL CALL: Roll call was made, and it being found that all members were present, the Chairman announced the meeting open for business. MINUTES: The Chairman asked whether any corrections, additions or deletions should be made to the minutes. of the three previous meetings which were held on Decem- ber 15, 18 and 27, 1978. There being no corrections to be made to said minutes, the minutes of the meetings were approved. NEW BUSINESS: The Chairman asked for a report of the activities of the representatives of the underwriting firm (Rauscher, Pierce, Refsnes, Inc.) concerning progress made on the bond package since the last meeting. John Rauscher stated that their basic activities have been further gather- ing of data and arranging for data to be collected in order to determine the existing mortgage market of the. area and income distribution of the City and its planning area. He stated that Phil Taylor of the Bureau of Business and Economic Research at the University of Arkansas is in the process of doing a survey to determine the housing market of the area and to determine the people who need and can be served by the bond package. . He stated that the data from Mr. Taylor's office should be available by next week. Mr. Rauscher stated that they had also been gathering input from the lend- • ing institutions. He said this input would need to be evaluated, "not just taken at face value since some of the local constraints preclude use of some of the funds to people who want and need them." He stated that it was his theory that the majority of new construction in the area was occurring outside the city limits and since the Board of Directors had precluded use of 75% of the funds for new construction outside the city limits he was not sure the bond package would ef- fectively meet the local needs unless the geographical territories are extended. A discussion ensued concerning whether this Board should ask the City Board to amend that section of the governing Ordinance which limits the percentage of loans which can be made within/without the city limits. Mr. Martin questioned Mr. Rauscher whether the territorial limits of the ordinance would detrimentally effect lender participation and other aspects of the bond package. Mr. Grimes commented that he 1,,IC'..OFILMED [M Jul_ 1 0 1979 REEL .i! • Residential Housing Facilities Board Meeting January 12, 1979 "�. Page 2 felt lender participation would be greatly effected. Mr. Rauscher stated that the full effect would not be known until Mr. Taylor's surveys have been analyzed. Dale Christy recommended that this Board obtain exact figures before going to the City Board with a request to amend the Ordinance in this respect. Mr. Rauscher noted that the Springdale bond issue could have adverse effects upon the Fayetteville issue's marketing and credit rating. He stated that "you can't have competing bond issues within the same economic territory."' He further stated that "We, as underwriters, and the Board would not want to be involved in a bond issue that can't be sold." He stated that the Springdale bond, at this moment, has no defined geographical limits. A discussion ensuedconcerning the desirability of negotiating an agreement with Springdale in order that Springdale will not make any loans in Fayetteville's city limits or extraterritorial planning jurisdiction. Jim McCord stated that the Fayetteville Board of Directors had adopted an ordinance requesting Springdale to preclude Fayetteville and its growth area from their lending territory, but to his knowledge Springdale has never been officially informed of the ordinance. John Rauscher noted that it was in the best interests of both communities to define their lending eligibility territories. Dale Christy moved to appoint Jim Buttry to negotiate with the Springdale Board an agreement which would officially separate and define each city's lending territories. F. H. Martin seconded the motion, which passed unanimously. OLD BUSINESS: A discussion was had concerning problems which would be encountered in attempting to provide interim construction money for the area. A discussion was also had concerning portfolio mix, program participation fees, prepayment penalties, and possible retention of a trustee and/or custodian. Mr. Rauscher stated that he felt the next decisions which should be made would be to determine the income limits of persons who will be eligible for loans and to select a trustee and/or custodian. Mr. Rauscher noted, however, that be- fore any of these decisions are made they will first need to obtain the survey from Mr. Taylor and analyze it, along with all the other data they are collecting from lending institutions and economic agencies. After lengthy general discussions were concluded, the Chairman announced that a meeting would be set for sometime within the next week in order to review the data and survey the underwriters havebeen collecting. There being no further business to come before the meeting, the meeting adjourned at 5:30 o'clock P.M. Ron Pennington, Secretary ATTEST: F. H. Martin, Chairman