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HomeMy WebLinkAboutTexas Student Housing Presentation 09-30-2019Town Council update Texas Student Housing Authority September 30, 2019 ∗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 2 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 $5,880/year at the Ridge in Denton, $7,990/year at the Cambridge in College Station and $5,700/year at Town Lake in Austin. ∗Since 1995, TSHA has awarded over 2,500 housing scholarships to Texas High School graduates. ∗For FY 2020, TSHA has awarded full housing scholarships to 18 Westlake Academy students, 12 at College Station, 2 in Denton, and 4 in Austin. Total WA scholarship value $130,440. Overview Update to Financial Outlook Report Cambridge at College Station ∗Consists of 196 Units/530 Beds ∗Originally financed with A/B/C/D certificates; ∗Most of C&D certificates are subject to retirement ∗Occupancy for 2019-2020 is projected to be 47%. ∗Approximately half of the occupancy are TSHA students. ∗Since 2016, over 3,000 beds have been added on campus and off campus occupancy at The Cambridge has fallen dramatically. ∗Due to this sudden influx, the market for off campus housing has dropped precipitously. ∗TSHA is now working with the A bondholder to restructure the debt. Current revenues are adequate to cover operating expenses but will not service debt or provide for capital expenditures. 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 $2,500 scholarship award. TSHA will continue to manage the scholarship program and collect a monthly program fee. Update to Financial Outlook Report The Ridge at Denton ∗Consists of 288 Units/876 Beds ∗Financed with A/B bonds ∗2018-2019 Occupancy Rate was 95% ∗2018-2019 net cash flow covered the Senior Bond interest and partial interest on Subordinate Bonds. We are exploring a refinancing proposal which would lower the interest rate on the bonds. ∗TxDot has made eminent domain offers on two parcels of land affecting the parking along the I-35 Corridor; negotiations underway. ∗Funds ∗Repair and Replacement fund is depleted ∗The 2019-2020 occupancy rate is projected to be 98% 2019-2020 Scholarships Awarded and Value Scholarships Awarded Scholarship Value Cambridge 127 $381,910 Town Lake 42 $120,000 Denton 24 $64,260 Total 193 $566,170