BOARD MEETING MINUTES Iowa Finance Authority Presentation ...

Darlys Baum, Vice Chair
Carmela Brown, Treasurer
Heather Armstrong
David Greenspon
BOARD MEETING MINUTES
Iowa Finance Authority Presentation Room
2015 Grand Avenue
Des Moines, Iowa
June 1, 2011
Board Members Present Board Members Absent
Sean Bagniewski, HOME Program Analyst
Lori Beary, Community Development Director
Connie Bryant, Housing Production Specialist
Eric Chatman, Deputy Director/Chief Financial
Officer
Stacy Cunningham, LIHTC Analyst
Leo Duffy, Architect/Construction Analyst
Rita Eble, HOME Program Analyst
Mark Fairley, Finance & Investment Manager
Jerry Floyd, HOME Program Analyst
Derek Folden, Underwriter
Becky Gahart, Administrative Assistant
Irene Hardisty, Director of Single-Family
Production
Steve Harvey, Director of Operations/Comptroller
Ashley Jared, Communications Director
John Kerss, Construction Analyst
Michael Barnes – Barnes Properties
Clark Booth – Koester Construction
Bob Burns – BurnsHousing.com
Al Collet – Community Housing Initiatives
Jim Conlin – Conlin Properties
B.J. Connolly – Connolly Consulting
Maryann Dennis – Housing Fellowship
Steve Eggleston – HUD Iowa Office
Dan Garrett – Midwest Housing Equity Group
David Grossklaus – Dorsey & Whitney, LLP
Michael Hayes – Michael Hayes Law Firm
Brett Hyland – Hubbell Realty
Chris Langpaul – 360 Real Estate Services
Roger Langpaul – 360 Real Estate Services
Frank Levy – Newbury Development Company
Michel Nelson
Eric Peterson
Ruth Randleman
Staff Members Present
Others Present
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Roger Caudron, Chair
David Erickson
Katie Kulisky, Administrative Assistant
Tim Morlan, Underwriter
Loyd Ogle, Director of Title Guaranty Division
Nancy Peterson, Senior Compliance Officer
Wes Peterson, Assistant to the Director
Carla Pope, Director of Affordable Rental
Production
Rob Tietz, Financial Analyst
Dave Vaske, Low-Income Housing Tax Credit
Manager
Carole Vipond, Director of Section 8 Contract
Administration
Nancy Wallis, Administrative Assistant
Joanna Wilson, Associate General Counsel
Karen Winchester, Underwriting Analyst
Christine Zimmerman, HOME Program
Administrative Assistant
Rob McCready
Bret Mills – Conlin Properties
Callie Mills - Resident
Renie Neuberger – Neuberger Consulting
Jackie Nickolaus – Sherman Associates
Jim O’Hare – Horizon Bank
Tony Putz – USDA Rural Development
Kris Saddoris – Saddoris Consulting
Brent Schipper – ASK Studio
James Smith – Dorsey & Whitney, LLP
Dan Venter – Venter Spooner Construction
Jeff Voorhees – National Consulting Alliance
Jim Weber – Hubbell Realty
Ted Witt – Conlin Properties

Call to Order
Vice Chair Baum called to order the June 1, 2011, regular monthly meeting of the Iowa Finance
Authority (IFA) Board of Directors at 11:02 a.m. Roll call was taken and a quorum was established with
the following Board members present: Armstrong, Baum, Brown, Greenspon, Nelson, Peterson and
Randleman.
Review of Minutes
May 3, 2011, Board Training Session
Vice Chair Baum introduced the minutes of the May 3, 2011, training session of the IFA Board of
Directors.
MOTION: On a motion by Ms. Randleman and a second by Mr. Peterson, the Board approved the
minutes of the May 3, 2011, training session of the IFA Board.
May 4, 2011, Board Meeting
Vice Chair Baum introduced the minutes of the May 4, 2011, regular monthly meeting of the IFA Board
of Directors.
MOTION: On a motion by Mr. Nelson and a second by Ms. Armstrong, the Board approved the
minutes of the May 4, 2011, regular monthly meeting of the IFA Board.
HousingIowa
AFFORDABLE RENTAL PRODUCTION
Resolution HI 11-04, 2011 Low-Income Housing Tax Credit (LIHTC) & HOME Awards
Mr. Vaske thanked the developers who submitted applications for the current funding round. He then
introduced the tax credit staff and briefly explained the process used to review and score the
applications.
Mr. Vaske introduced the resolution allocating joint awards under the Low-Income Housing Tax Credit
Program and the HOME Program. He highlighted the projects recommended for funding by using a
PowerPoint presentation to share basic information about each project.
MOTION: Ms. Armstrong made a motion to approve the resolution authorizing the award of 2011 tax
credits and HOME Program funding to the projects listed on Exhibit A of the resolution. On a second by
Mr. Greenspon, a vote was taken with the following results: YES: Armstrong, Baum, Brown,
Greenspon, Nelson and Peterson; No: None; ABSTAIN: Randleman. Ms. Randleman submitted a
letter stating that prior to being appointed to the IFA Board, she had signed, as Mayor of Carlisle, a
letter of support for a project in Carlisle that applied for tax credits. [See attached letter]. The Board
approved Resolution HI 11-04 on a majority vote.
Resolution HI 11-05, HOME Awards
Ms. Pope introduced the HOME staff who reviewed and scored all applications for HOME funding,
including those requesting LIHTC funding and those requesting only HOME funds. She reviewed the
statistics of the 11 projects recommended for funding and said that those 11 projects will serve 184
households with a total of $3,534,407 in funding.
MOTION: Mr. Nelson made a motion to approve the resolution allocating 2011 HOME Program
funding to the projects listed on Exhibit A of the resolution. On a second by Mr. Greenspon, the Board
unanimously approved Resolution HI 11-05.
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Administration
SUMMARY & OVERVIEW
In the absence of Director Jamison, there was no report.
ACCOUNTING AND FINANCE
Review of Financial Statement
Mr. Harvey presented the April 2011 financial results, reporting that as a housing agency, year-to-date
net operating income of $8,999,091 is favorable to budget by $4,391,670.
Mr. Harvey noted that State Revolving Fund year-to-date net operating income of $39,557,152 is
$14,328,057 favorable to budget.
MOTION: On a motion by Ms. Brown and a second by Ms. Armstrong, the Board unanimously
accepted the April 2011 financial statement.
Review of FY12 Budget
Mr. Harvey introduced the proposed IFA budget for FY12 by presenting brief details for IFA as a
housing agency and for the State Revolving Fund (SRF) Program. Mr. Harvey explained that the budget
for IFA as a housing agency is based on a net operating income of $6.2 million, which is 37 percent
below the FY11 forecast. He stated that the SRF budget is based on a net operating income of $23.7
million.
MOTION: On a motion by Mr. Peterson and a second by Ms. Randleman, the Board unanimously
approved the budget for FY12.
Resolution FIN 11-08, Authorizing Proceedings for Single-Family Bond Issue – New Issue Bond
Program (NIBP)
Mr. Fairley reminded the Board that IFA is a participant in the US Treasury Department’s New Issue
Bond Program, under which Housing Finance Agencies may issue bonds to be sold to the US Treasury
at favorable rates. He stated that IFA has accumulated sufficient amounts ($42 million) of single-family
mortgage reservations to issue a bond to fund the mortgages. Mr. Fairley provided details of the
proposed structure and timing of the bond issue, which is expected to be not more than $80 million of
tax-exempt bonds. He said the total is more likely to be $40 – $50 million and will be priced in June
2011 and closed in July 2011.
MOTION: Ms. Brown made a motion to approve the resolution adopting and approving Series
Resolutions relating to Single-Family Mortgage Revenue Bonds (Mortgage-Backed Securities Program)
and authorizing the issuance, sale and delivery of IFA’s Single-Family Mortgage Revenue Bonds
pursuant to such Series Resolutions; authorizing the execution and delivery of one or more Purchase
Contracts and a Continuing Disclosure Agreement; authorizing the release of proceeds and establishing
certain terms of not to exceed [$48,000,000] of Single-Family Mortgage Revenue Bonds, 2009 Series 3;
and delegating certain responsibilities to the Executive Director for finalizing certain matters, forms and
contents of certain documents. On a second by Mr. Nelson, the Board unanimously approved Resolution
FIN 11-08.
LEGAL
Notice of Intended Action: Military Homeownership Assistance (MHOA) Program
Ms. Hardisty explained that the IFA Board approved rules for the MHOA Program in 2010, but that an
error was made in the copy when the rules were submitted. She explained that because of that error, staff
is asking the Board to approve a Notice of Intended Action to make some amendments. Ms. Hardisty
said the two changes relate to the retroactive period for facilitating lenders participating in the program,
and the allowance for a potential home buyer to use alternate financing if that person did not qualify for
a fixed rate, fully amortizing mortgage.
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MOTION: On a motion by Mr. Greenspon and a second by Ms. Armstrong, the Board unanimously
approved the Notice of Intended Action for the Military Homeownership Assistance Program.
LEGISLATIVE
Mr. Peterson briefly reviewed legislation that had changed slightly since his last report. He said that
since the Legislature has been busy with the budget, there has been very little movement on any other
legislation recently.
Mr. Peterson reported that the Board materials included a copy of a letter that was sent by Governor
Branstad to every member of the Iowa delegation requesting that they seek an extension for the
Midwestern Disaster Area Bond deadline, which is set to expire at the end of 2012.
COMMUNICATIONS
Ms. Jared introduced Ms. Becky Gahart, who has been an intern with IFA and will now be working
part-time in communications and part-time with the I-JOBS program.
Ms. Jared announced that IFA has submitted an application to participate in HUD’s Emergency
Homeowner Loan Program (EHLP). She said IFA should receive a response by mid-June and that the
program must be initiated by July 1. Ms. Jared noted that the program should assist about 577
homeowners in Iowa who are at risk of foreclosure.
Ms. Jared reported that the work with Strategic America on branding and logo options is progressing
well.
Ms. Jared reminded the Board and guests that IFA’s 2011 HousingIowa Conference will be held
September 7-8 at the Des Moines Marriott Downtown, featuring both educational sessions and
nationally renowned professional development training session that will be available to attendees for the
price of registration. She stated that Liz Bramlet would present sessions focusing primarily on tax credit
compliance, while the National Center for Housing Management (NCHM) would provide sessions on
fair housing, Section 8 Contract Administration compliance, and HUD’s new Enterprise Income
Verification (EIV) system.
Community Development Programs
ECONOMIC DEVELOPMENT LOAN PROGRAM
Resolution ED 11-12A, GMT Corporation Project
Ms. Beary introduced an application and inducement resolution for $14,445,000 of Iowa Finance
Authority Economic Development Revenue Bonds for the GMT Corporation Project in Waverly and
Iowa City. She said the bonds will be used to construct a new building and for the purchase of
equipment. Ms. Beary explained that GMT Corporation is a contract manufacturer specializing in
machining large iron castings and the fabrication of large steel assemblies. She noted that the project
will require an allocation of Midwestern Disaster Area Bonds.
MOTION: Mr. Greenspon made a motion to adopt the resolution approving an application for
$14,445,000 of Iowa Finance Authority Economic Development Revenue Bonds (GMT Corporation
Project), Series 2011, for GMT Corporation or a related party (the “Borrower”), and evidencing the
intent to proceed with the issuance of $14,445,000 of Economic Development Revenue Bonds. On a
second by Ms. Armstrong, the Board unanimously adopted Resolution ED 11-12A.
Resolution ED 11-13A, Eddyville Chlor-Alkali Project
Ms. Beary introduced an application and inducement resolution for $130,000,000 of Iowa Finance
Authority Midwestern Disaster Area Revenue Bonds for the Eddyville Chlor-Alkali Project for Harris &
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Ford, LLC. She reported that the bonds will be used to construct a chlor-alkali manufacturing facility for
the production of caustic soda, hydrochloric acid and bleach, and that the plant will be constructed near
the Cargill facility in Eddyville who will be a significant customer for the products. Ms. Beary noted
that Harris & Ford, whose corporate headquarters is located in Indianapolis, Indiana, is a major
distributor of chemicals, ingredients and related products to food, cosmetic, pharmaceutical, water and
industrial customers. She said that the project will require an allocation of Midwestern Disaster Area
Bonds.
MOTION: Mr. Peterson made a motion to adopt the resolution approving an application for
$130,000,000 of Iowa Finance Authority Midwestern Disaster Area Revenue Bonds (Eddyville—Chlor-
Alkali Project), Series 2011, for Harris & Ford, LLC (the “Borrower”), and evidencing the intent to
proceed with the issuance of $130,000,000 of Midwestern Disaster Area Revenue Bonds. On a second
by Ms. Brown, the Board unanimously adopted Resolution ED 11-13A.
Resolution ED 11-14A, Diocese of Sioux City Project
Ms. Beary introduced an application and inducement resolution for $9,955,000 of Iowa Finance
Authority Revenue Bonds for the Diocese of Sioux City. She said the bonds will be used to refinance
outstanding bonds issued in 1999 and 2000. Ms. Beary explained that because The Diocese of Sioux
City is a 501c(3) nonprofit corporation, the project will not require an allocation of Private Activity
Bond Cap.
MOTION: Ms. Armstrong made a motion to adopt the resolution approving an application for
$9,955,000 of Iowa Finance Authority Nonprofit Facility Revenue Refunding Bonds (Diocese of Sioux
City Project), Series 2011, for Diocese of Sioux City (the “Borrower”), and evidencing the intent to
proceed with the issuance of $9,955,000 of Nonprofit Facility Revenue Refunding Bonds. On a second
by Ms. Randleman, the Board unanimously adopted Resolution ED 11-14A.
Public Hearing for ED Loan 11-06, Cargill Construction Project
Ms. Beary asked the Board to hold a public hearing regarding the issuance of an amount not to exceed
$200,000,000 of Iowa Finance Authority Midwestern Disaster Area Economic Development Revenue
Bonds for the Cargill, Incorporated Project. She stated that the bonds will be used for the acquisition,
construction and/or expansion of facilities in Bloomfield, Ottumwa, Cedar Rapids, Eddyville, Fort
Dodge and Mason City. Ms. Beary noted that the Board adopted the inducement resolution on May 4,
2011.
Vice Chair Baum opened the public hearing at 12:05 p.m. regarding the issuance of an amount not to
exceed $200,000,000 of Iowa Finance Authority Midwestern Disaster Area Economic Development
Revenue Bonds for the Cargill, Incorporated Project. Ms. Beary said IFA had received no verbal or
written comments regarding the project. There being no comments from the audience, Vice Chair Baum
closed the public hearing at 12:06 p.m.
Resolution ED 11-06B, Cargill Construction and Expansion Project
Ms. Beary distributed a revised version of Resolution ED 11-06B, noting that a minor change had been
made in the sixth paragraph on page 2 in the name of the Borrower’s Representative.
Ms. Beary introduced the resolution for $200,000,000 Iowa Finance Authority Midwestern Disaster
Area Economic Development Revenue Bonds for the Cargill, Incorporated Project. She said the project
will require an allocation of Midwestern Disaster Area Bonds.
MOTION: Mr. Nelson made a motion to adopt the resolution authorizing the issuance in one or more
series of not to exceed $200,000,000 of Iowa Finance Authority Midwestern Disaster Area Economic
Development Revenue Bonds (Cargill, Incorporated Project), Series 2011A and Series 2011B, for the
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purpose of making a loan to assist the borrower in the acquisition, construction and equipping of a
project; authorizing the execution and delivery of certain financing documents pertaining to the project;
authorizing an assignment of certain financing documents for further securing the payment of the bonds;
authorizing the sale of the bonds; authorizing the appointment of a trustee; and related matters. On a
second by Ms. Armstrong, the Board unanimously adopted Resolution ED 11-06B.
Public Hearing for ED Loan 11-07, Kahl Home Project
Ms. Beary asked the Board to hold a public hearing regarding the issuance of an amount not to exceed
$26,000,000 of Iowa Finance Authority Variable Rate Health Facility Revenue Bonds for the Kahl
Home Project in Davenport. She reported that the bonds will be used to construct a new 135-bed skilled
nursing facility, and that the borrower is Kahl Home for the Aged and Infirm, a 501c(3) nonprofit
corporation. Ms. Beary noted that the Board adopted the inducement resolution on May 4, 2011.
Vice Chair Baum opened the public hearing at 12:08 p.m. regarding the issuance of an amount not to
exceed $26,000,000 of Iowa Finance Authority Variable Rate Health Facility Revenue Bonds for the
Kahl Home Project in Davenport. Ms. Beary said IFA had received no verbal or written comments
regarding the project. There being no comments from the audience, Vice Chair Baum closed the public
hearing at 12:09 p.m.
Resolution ED 11-07B, Kahl Home Project
Ms. Beary introduced a resolution for $26,000,000 of Iowa Finance Authority Variable Rate Health
Facility Revenue Bonds for the Kahl Home Project in Davenport.
MOTION: Ms. Randleman made a motion to adopt the resolution authorizing the issuance of not to
exceed $26,000,000 of Iowa Finance Authority Variable Rate Health Facility Bonds (The Kahl Home
Project), Series 2011, for the purpose of making a loan to assist the borrower in the acquisition,
construction and equipping of a project; authorizing the execution and delivery of certain financing
documents pertaining to the project; authorizing an assignment of certain financing documents for
further securing the payment of the bonds; authorizing the sale of the bonds; authorizing the
appointment of a trustee; and related matters. On a second by Mr. Peterson, the Board unanimously
adopted Resolution ED 11-07B.
Public Hearing for ED Loan 11-10, Solon Nursing Care Center Project
Ms. Beary asked the Board to hold a public hearing regarding the issuance of an amount not to exceed
$3,600,000 of Iowa Finance Authority Midwestern Disaster Area Revenue Bonds for the Solon Nursing
Care Center Project. She explained that the bonds will be used to construct a 12-bed skilled nursing unit
and a 12-bed dementia unit connected to the borrower’s existing facility in addition to remodeling the
current kitchen and dining room. Ms. Beary said the Board approved the inducement resolution on May
4, 2011.
Vice Chair Baum opened the public hearing at 12:10 p.m. regarding the issuance of an amount not to
exceed $3,600,000 of Iowa Finance Authority Midwestern Disaster Area Revenue Bonds for the Solon
Nursing Care Center Project. Ms. Beary said IFA had received no verbal or written comments regarding
the project. There being no comments from the audience, Vice Chair Baum closed the public hearing at
12:11 p.m.
Resolution ED 11-10B, Solon Nursing Care Center Project
Ms. Beary introduced a resolution for $3,600,000 of Iowa Finance Authority Midwestern Disaster Area
Revenue Bonds for the Solon Nursing Care Center Project. She noted that the project will require an
allocation of Midwestern Disaster Area Bonds.
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MOTION: Ms. Armstrong made a motion to adopt the resolution authorizing the issuance of not to
exceed $3,600,000 of Midwestern Disaster Area Revenue Bonds (Solon Nursing Care Center Inc.
Project) for the purpose of making a loan to assist the borrower in the acquisition and construction of a
project; authorizing the execution and delivery of certain financing documents pertaining to the project;
authorizing an assignment of certain financing documents for further securing the payment of the bonds;
authorizing the sale of the bonds; and related matters. On a second by Ms. Brown, the Board voted
unanimously to adopt Resolution ED 11-10B.
Title Guaranty Division (TGD)
Mr. Ogle reported that TG’s revenue this fiscal year has exceeded the previous fiscal year at least 9 of
the past 11 months. He said the commercial business also continues to grow.
Mr. Ogle announced that TGD would hold its annual Settlement Services Conference on June 23, 2011,
at the Sheraton West Des Moines.
Miscellaneous Items
Receive Comments from General Public
Vice Chair Baum opened the public comment period and asked if anyone in the audience would like to
address the Board. There being no audience members wishing to address the Board, Vice Chair Baum
closed the public comment period.
Adjournment
There being no further business, on a motion by Ms. Armstrong and a second by Ms. Randleman, the
June 1, 2011, meeting of the IFA Board of Directors adjourned at 12:17 p.m.
Dated this 6th day of July 2011.
Respectfully submitted: Approved as to form:
David D. Jamison Roger J. Caudron, Chair
Executive Director/Board Secretary Iowa Finance Authority
Iowa Finance Authority
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