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HomeMy WebLinkAboutTexas Student Housing Authority Annual presentation 04-24-17Town Council update Texas Student Housing Authority April 24, 2017 ∗History ∗TSHA was chartered in 1995 under Chapter 53 of the Higher Education Act for the purpose of acquiring student housing facilities. TSHA in the beginning acquired three student housing facilities in College Station with tax exempt bonds that do not obligate the Town of Westlake. Subsequently, those properties were relinquished and TSHA constructed The Cambridge in College Station (Texas A&M). Later TSHA acquired facilities in San Marcos (Texas State University), Denton (University of North Texas), Wichita Falls (Midwestern State University), and Austin (University of Texas). In 2003, Chapter 53 was amended in such a way that THSA could not thereafter acquire additional properties in the future (except in Westlake). TSHA currently owns The Cambridge in College Station and The Ridge in Denton and for the next 4 years has the right to maintain its scholarship program at Town Lake in Austin. ∗Contributions to Westlake Academy ∗To date TSHA has contributed $950,000 to Westlake Academy. ∗Scholarships ∗Incremental housing scholarships are $2,500/year and generally awarded up to 4 years. ∗Full housing scholarships vary from $5,760/year at UNT and TWU to $9,500/year at Texas A&M and Blinn College. ∗Since 1995, TSHA has awarded over 2,000 housing scholarships to Texas High School graduates. ∗For FY 2017, TSHA has awarded full housing scholarships to 5 Westlake Academy students –2 at TAMU and 3 at UNT. Overview Update to Financial Outlook Report ∗Cambridge at College Station ∗Consists of 196 Units/530 Beds ∗Financed with A/B/C/D certificates ∗Occupancy for 2016-2017 was 60% ∗Series A and B bondholders debt service has been met in FY 2016. Series C & D continue to be in default. ∗Funds ∗Repair and Replacement and Debt Service Reserves Funds are fully funded. ∗As of 8/31/16 per audited financials A & B P&I Funds are fully funded. C & D are not funded. ∗Scholarships awarded in FY 2016 was 68. Scholarships awarded in FY 2017 currently stands at 95, 40% increase from prior year. Update to Financial Outlook Report ∗Town Lake at Austin ∗Consists of 216 Units/648 Beds ∗TSHA sold Town Lake in October 2016 but will continue its scholarship program until July 2021 which allows 48 students per year the $2500 scholarship award. TSHA will continue to manage the scholarship program and collect a monthly program fee. ∗New ownership has expressed interest in TSHA possibly running its scholarship program at their other properties. Update to Financial Outlook Report ∗The Ridge at Denton ∗Consists of 288 Units/876 Beds ∗Financed with A/B bonds ∗2015-2016 Occupancy Rate was 97% ∗2016-2017 net cash flow covers the Senior bond interest and partial interest on Subordinate Bonds. ∗Funds ∗Repair and Replacement fund is depleted ∗The 2016-2017 occupancy rate is projected to be 98.6% ∗Insurance covered new roofs on all buildings which were replaced in Spring of 2017 ∗Bond holders are reviewing Cap Ex budget for upgrades to the property and maintenance of the exteriors. Property Financials 2015-2016 School Year (Audited) Cambridge Town Lake Denton Revenue $4,590,864 $3,309,222 $5,071,394 Expense $4,289,602 $2,574,194 $2,961,342 Trustee Fee 10,000 $5,000 $5,000 Net Income $301,262 $735,028 $2,110,052 Debt Svc –A&B $1,846,550 N/A N/A Debt Svc –C&D $0 N/A N/A Debt Svc –A N/A N/A $2,399,418 Debt Svc –B N/A N/A $498,908 Debt Svc –C N/A N/A N/A Debt Svc –A1 N/A $1,496,712 N/A Debt Svc –A2 N/A $6,743 N/A 2015-2016 Scholarship Income/Expense Income Expense Cambridge $11,000 $21,500 Town Lake $115,181 $58,125 Denton $93,195 $32,790 Total $219,376 $112,415