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FLORIDA ASSOCIATION OF LOCAL HOUSING FINANCE AUTHORITIES ANNUAL MEETING

Minutes of meeting held July 16, 2008

Present: Angela Abbott, Vice President Walt Ferguson, Secretary/Treasurer W.D. Morris, Board Member Patricia Braynon, Board Member Rodney Fischer, Board Member Karen Sindel, Executive Director

Others Participating: Jim Ryan, Clay County HFA Jim Pellot, Jacksonville HFA Frank Dodson, Manatee County HFA Rich Pierro, Manatee County HFA Brad Nimmo, Marion County HFA Penny Ferguson, Guest Richard Everhart, Leader Financial Services Amanda Culp, RBC Capital Markets John Sabatier, RBC Capital Markets Mark Hendrickson, The Hendrickson Company

The Florida Association of Local Housing Finance Authorities held their annual meeting at the Portofino Bay Resort, Donatello Board Room, Orlando, FL on this 16th day of July, 2008. Ms. Abbott called the meeting to order at 4:25 p.m. at which time she determined a quorum of the Board was present. The first item on the agenda was the approval of the minutes of the April 3, 2008 quarterly meeting. A motion was made by Mr. Morris, seconded by Mr. Ferguson and approved by the Board to approve the minutes. Mr. Ferguson then presented the following financial report: $32,444.051 in the AmSouth checking account; $108,603.09 in the AmSouth money market account; $113,018.89 in the Bank of Pensacola CD; and $85,821.72 in the Gulf Coast Bank savings account for a total of $339,887.75. Mr. Fischer then moved that the Board accept the financial report and moved for approval and ratification of expenditures for the period March 31, 2008 to June 31, 2008.. The motion was seconded by Ms. Braynon and unanimously approved. Ms. Braynon then moved that the Board approve reimbursement to Ms. Abbott of $150.00 to cover the filing cost of having our conference qualify for CEUs for attending accountants. Mr. Morris seconded the motion which then passed unanimously. Mr. Morris then commented that our financial report for this same time next year will more than likely be less due to the economy. Mr. Hendrickson provided the legislative report. According to Mr. Hendrickson, "when a developer uses local HFA bonds to finance a multi-family transaction, they must still apply to FHFC to receive the ‘automatic’ 4% Housing Credits that come with tax exempt financing. Under the Qualified Allocation Plan that governs the allocation of credits, the development must meet FHFC standards. In practice, FHFC requires the developer to file an application (the same one they would file for housing credits in the competitive cycle); however, the required score to meet threshold is relatively low. This means that on most deals, developers can meet ‘threshold’ without having to agree to many of the features and resident programs that would be required to have a chance of winning in the competitive cycle. The rule that governs the process states that a developer has until June 30 of the year the development is ‘placed in service’ to make the application for 4% credits. FHFC is taking the position that a developer must complete the application in effect at the time they make the application for 4% credits, not the application that was in effect when they financed the development. This mean that if the developer does not immediately file for the 4% credits simultaneously with bond closing, and FHFC changes their construction amenity standards, resident program standards, points required, or anything else of substance, a developer is trapped by the rules that were not in place when they financed and/or constructed the development. Additionally, FJFC has a number of physical features that are required for a development to meet ‘threshold’ as an elderly development – standards that may not be the same as the local HFA. This means that whenever filed, the then current FJFC standards will apply or the development will not be awarded the "automatic" housing credits. A deal could meet local standards for elderly, but still fail the FHFC requirement." Mr. Morris noted that FL ALHFA members need to show up at FHFC meetings and express our concerns at the FHFC Board level. Mr. Hendrickson suggested that he set up a meeting with the Director of FHFC at our request to discuss this issue. Mr. Morris then asked if there is any activity on the horizon regarding "scrap the cap." Mr. Hendrickson remarked that the incoming Speaker (Ray Sansom of Destin) has openly stated he would like to remove the cap from the housing trust funds within the next two years. However, budget constraints will play a large role in this decision. Ms. Sindel then presented an update on the annual conference. The final conference agenda, including the names of all of the guest speakers, was provided to the Board members prior to today’s meeting for review. The Dine Around restaurants are full as more than 40 guests have registered in the past 3 days. Ms. Abbott will host BICE; Mr. Morris will host Mama Della and Ms. Braynon will host The Palm. Ms. Sindel then reviewed the list of sponsors, advertiser and exhibitors as well as a head count regarding attendance. In 2007, there were a total of 176 attendees to the annual conference, and this year there are 203 in attendance. Ms. Abbott then presented the nominating committee’s report. This slate of officers will be presented and voted on during the General Session on July 17, 2008 and is as follows: Mr. Morris, President; Ms. Abbott, Vice President; Mr. Ferguson, Secretary/Treasurer. Mr. Fischer moved for approval of the slate, Ms. Braynon seconded the motion and it was approved unanimously. The Board then discussed the possibility of expanding by adding two new members in 2009. Mr. Ferguson noted that by announcing the Board expansion to the FL ALHFA membership it allows interested parties the opportunity to attend meetings during the year and express their interest in joining. Ms. Abbott noted that the FL ALHFA bylaws will need to be updated/changed to reflect his expansion and that only members of Housing Finance Authorities will be permitted to join. Ms. Abbott also noted that due to the passing of Mr. Jernigan of Escambia HFA, there is now a seat open. During open discussion it was determined that FL ALHFA board members, in the past, were those serving as Executive Director for their HFA. However, this is no longer the case. Ms. Abbott will send each member of the FL ALHFA Board a copy of the articles and bylaws for review so that this issue can be resolved prior to next year’s annual meeting. Mr. Fischer then moved that Mr. Elbert Jones, Executive Director of Escambia HFA be asked to immediate join the FL ALHFA Board of Directors to replace Mr. Jernigan. Mr. Morris seconded the motion which then passed unanimously. Mr. Fischer then moved that the FL ALHFA Board of Directors add two new members at the 2009 annual meeting. Mr. Ferguson seconded the motion which then passed unanimously. Ms. Sindel then requested a date for the Board to have a telephone meeting to "wrap up" the educational conference. The Board decided on August 14, 2008 beginning at 3:00 EST. An agenda and support paperwork will be sent to the Board by Ms. Sindel prior to the meeting. The location for the 2009 conference was then discussed by the Board. As on of the final sessions for the conference, "HFA Open Forum" will discuss this issue it was decided that a location decision for 2009 will not be made at this time. The dates for the 2008-2009 FL ALHFA Board meetings were then discussed. The next quarterly meeting will be held October 8, 2008 in Orlando, FL. The dates for the January 2009 and the spring 2009 meetings will be decided at the October meeting. There being no further business the meeting was adjourned at 5:30 p.m.

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