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Home My WebLink AboutTexas Student Housing Authority presentationTown Council update Texas Student Housing Authority June 17, 2013 ∗Original goal or why are we in business ∗Grant scholarships to deserving students from districts surrounding Westlake as well as the entire State of Texas ∗Provide incremental revenue to the Town – over the years, the town has received $950,000 from TSHA ∗Goal has Evolved ∗Grant scholarships to Texas High School graduates. ∗Since 1995,when TSHA began, a total of 1713 scholarships have been awarded ∗Incremental and Full Scholarship Offers ∗Incremental valued at $2,500/year maximum of 4 years ∗Full value varies from $3,960 at Townlake to over $9,000 at Cambridge. 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 2012/2013 is 100% ∗Rental rates increased by 2.5% for 2012-2013 ∗2012-2013 net cash flow is projected to meet debt services payments for A & B certificate holders ∗Tax exempt status for 2005-2009 has been denied by Brazos County ∗A trial was held in Dec 2010. The presiding Judge rendered an adverse verdict. ∗THSA has filed an appeal, the appeal was heard in Amarrillo, and still waiting for a verdict. ∗???? Have been filed to cover 2010-2012 in District Court and are awaiting a trial date. ∗Funds ∗Repair and Replacement and Debt Service Reserves Funds are fully funded. ∗A & B P&I Funds are fully funded. C & D are not funded. Update to Financial Outlook Report ∗Ballpark at Austin ∗Consists of 283 Units/768 Beds ∗Financed with A/B/C bonds ∗2012-2013 Occupancy ∗Occupancy is 99.4% ∗Rental rates have increased slightly ∗2012-2013 net cash will not cover debt service ∗MBIA called these bonds and subsequently sold them to EMET Capital of New York ∗Forbearance agreement has been agreed to with EMET Capital which will allow scholarships to be issued for approximately next 2 years. ∗Funds ∗Repair and Replacement is depleted ∗Debt Service Reserve balance is $108,508 Update to Financial Outlook Report ∗Town Lake at Austin ∗Consists of 216 Units/648 Beds ∗Financed with A-1 and A-2 bonds ∗Occupancy for 2012-2013 is 99.2% ∗2012-2013 net cash flow will not cover debt services ∗Muni Mae ∗Suspending the interest payments on A2 bonds ($33K month) Interest payment suspension triggered an event of default ∗Will give MMA greater input as to the direction of the property, including possible foreclosure action ∗Funds ∗Repair and Replacement balance is $120,792 ∗Debt Service Reserve balance is $157,065 ∗A-2 bonds are not being paid ∗EMET Capital discussions with MMA regarding a possible sale of bonds Update to Financial Outlook Report ∗The Ridge at Denton ∗Consists of 288 Units/876 Beds ∗Financed with A/B bonds ∗2012-2013 Occupancy is 85.7% ∗2012-2013 net cash flow will only cover Senior bond interest ∗Funds ∗Repair and Replacement fund is depleted ∗Debt Service Reserve fund balance is $1.876 million ∗New properties are being build although the occupancies continue to decline each year Asset Management Fees collected from Asset Campus Housing are deposited in the Authority Account 7 How the Funds Flow. . . Authority Account Rental Account Properties •Cambridge •Town Lake •Ballpark •The Ridge at Denton Asset Campus Housing •Asset Management Fees •Transfers from Rental Account as needed What makes up Authority Account funds: •Incremental Scholarship cost collected from scholarship recipients What makes up Rental Account funds: A portion of the student’s contribution for the incremental scholarship, as well as the payment for full scholarships are paid to the properties from the Rental Account. Property Financials 2012-2013 School Year (budgeted) Cambridge Ballpark Town Lake Denton Revenue $5,951,867 $3,724,523 $2,923,902 $4,673,842 Expense $3,536,398 $1,613,862 $1,325,445 $2,205,886 Trustee Fee 10,000 $5,000 $5,000 $5,000 Cash Flow $2,415,468 $2,110,661 $1,598,458 $2,467,957 Debt Svc – A&B $1,884,000 N/A N/A N/A Debt Svc – C&D $894,540 N/A N/A N/A Debt Svc – A N/A $2,264,644 N/A $2,398,092 Debt Svc – B N/A $192,550 N/A $220,000 Debt Svc – C N/A $330,000 N/A N/A Debt Svc – A1 N/A N/A $1,677,096 N/A Debt Svc – A2 N/A N/A $439,800 N/A 2012-2013 Estimated Scholarship Income/Expense (budgeted) Income Expense Cambridge $10,750 $21,500 Ballpark $59,327 $42,750 Town Lake $66,773 $49,500 Denton $43,630 $19,240 Overflow facilities N/A N/A Total $180,480 $106,600