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HomeMy WebLinkAbout1979-05-09 - Minutes - -34 MINUTES OF A RESIDENTIAL HOUSING FACILITIES BOARD MEETING May 9, 1979 The Residential Housing Facilities Board of the City of Fayetteville, Arkansas, met at 4:00 P.M. in the Board of Directors Room, City Adminstration Building, Fayetteville, Arkansas . PRESENT: Chairman F. H. Martin, Members Dale Christy, Ron Pennington, George Faucette, Jr. , City Attorney Jim McCord, and Angie Medlock. ABSENT: John Dominick. OTHERS PRESENT: Members of the press. MINUTES After calling the meeting to order, Chairman Martin asked if there should be any corrections or additions to the minutes of the April 13, 1979 meeting. There being no corrections necessary, the Chairman declared the minutes approved ±as submitted. BUSINESS Chairman F. H. Martin declared that the meeting was called to approve a resolution confirming the final interest rate of 8. 1%. He noted that the Board had'previously approved the financing to be at an interest rate not to exceed 8. 15%. Dale Christy, seconded by George Faucette, Jr. moved to approve the resolution. The motion passed unanimously. Chairman Martin raised the question if someone could obtain a loan to build a home on a lot which they already owned. George Faucette Jr. said he had discussed this with City Attorney Jim McCord who had conferred with bond counsel , Jim Buttrey. Faucette said he received a written opinion from the City Attorney that the intent of the bond program was not to prohibit such a practice, and that a 1% origination fee and a 1% participation fee may be collected at the time the letter of commitment was issued. Chairman Martin said that based on this opinion, they would be able to make loans on already-owned lots. He said he felt this was the intent of the Board. The City Attorney explained that there is a potential borrower who owns a commercial business which he is wanting to convert into a house. He stated that the person has a ten-year loan on the building, and has paid a small portionoof the equity. McCord asked the Board if they felt this would be considered remodeling or refinancing and said if they considered it to be either of these, then this person would not qualify for the loan. George Faucette Jr. said there is no question that this is not a sale. He said he felt it would have to be a "new purchase". The members of the Board agreed with Mr. Faucette. George Faucette asked if there would be any way someone could build an addition onto a house which they are going to buy, and have the cost of the addition included in the amount of the loan. F. H. Martin pointed out that the problem would be that a person would take title before the addition was completed. Faucette said he felt one way they could accomplish this would be to give the seller enough option money to hold the house for the buyer until they had the improvements completed. psMCpFtLtv1=D pA-�F�L-1 4 1979 Residential Housing Facilities Board Meeting May 9, 1979 Page 2 EXPENSES Chairman Martin stated that there is some money in a contingency fund to cover expenses which have not yet come in. A discussion ensued concerning repayment for expenses incurred by the Board members and City Attorney McCord suggested that Martin authorize the underwriter to reimburse the individual members for these expenses. LOAN COMMITMENTS George Faucette Jr. asked if the lenders could refuse to sell commitments for VA and FHA loans even though the program is set up on a first-come, first-serve basis. He said some lending institutions have taken the position that this doesn't apply to the "type" of loan made. He asked if this is within their rights and the City Attorney said he would be inclined to say it is, but would check with bond counsel . (After conferring with bond counsel , City Attorney McCord said if the lending institutions did not apply for any money for VA or FHA loans in the original request, they would not be obligated to process these types of loans) . FUTURE MEETING The Chairman requested Secretary Ron Pennington to call the annual meeting for the Public Facilities Board for some time in December of 1979, and notify the members of the date of the meeting. APPRECIATION TO BOARD Director Paul Noland expressed appreciation to the Public Facilities Board for the work they have done on the bond issue and the expeditious manner in which they have operated. There being no further. business', the Chairman declared the meeting adjourned at 4:20 P.M.